CHAPTER 2115. RECOVERY OF CERTAIN STATE AGENCY OVERPAYMENTS
GOVERNMENT CODE
TITLE 10. GENERAL GOVERNMENT
SUBTITLE C. STATE ACCOUNTING, FISCAL MANAGEMENT, AND PRODUCTIVITY
CHAPTER 2115. RECOVERY OF CERTAIN STATE AGENCY OVERPAYMENTS
Sec. 2115.001. DEFINITIONS. In this chapter:
(1) "Overpayment" includes a duplicate payment made to a vendor
for a single invoice and a payment made to a vendor:
(A) when an available discount from the vendor was not applied;
(B) for a late payment penalty that was improperly applied by
the vendor;
(C) for shipping costs that were computed incorrectly or
incorrectly included in an invoice;
(D) for state sales tax; or
(E) for a good or service the vendor did not provide.
(2) "State agency" means a department, commission, board,
office, or other agency, including a university system or an
institution of higher education other than a public junior
college, that:
(A) is in the executive branch of state government;
(B) is created by statute; and
(C) does not have statutory geographical boundaries limited to a
part of the state.
Added by Acts 2005, 79th Leg., Ch.
403, Sec. 1, eff. June 17, 2005.
Added by Acts 2005, 79th Leg., Ch.
899, Sec. 2.01, eff. August 29, 2005.
Sec. 2115.002. CONTRACT CONSULTANTS FOR RECOVERY AUDITS FOR
CERTAIN OVERPAYMENTS. (a) The comptroller shall contract with
one or more consultants to conduct recovery audits of payments
made by state agencies to vendors. The audits must be designed
to detect and recover overpayments to the vendors and to
recommend improved state agency accounting operations.
(b) A contract under this section:
(1) may provide for reasonable compensation for services
provided under the contract, including compensation determined by
the application of a specified percentage of the total amount
recovered because of the consultant's audit activities or
recommendations as a fee for services;
(2) may permit or require the consultant to pursue a judicial
action in a court inside or outside this state to recover an
overpaid amount; and
(3) to allow time for the performance of existing state payment
auditing procedures, may not allow a recovery audit of a payment
during the 180-day period after the date the payment was made.
(c) The comptroller or a state agency whose payments are being
audited may provide a person acting under a contract authorized
by this section with any confidential information in the custody
of the comptroller or state agency that is necessary for the
performance of the audit or the recovery of an overpayment, to
the extent the comptroller and state agency are not prohibited
from sharing the information under an agreement with another
state or the federal government. A person acting under a
contract authorized by this section, and each employee or agent
of the person, is subject to all prohibitions against the
disclosure of confidential information obtained from the state in
connection with the contract that apply to the comptroller or
applicable state agency or an employee of the comptroller or
applicable state agency. A person acting under a contract
authorized by this section or an employee or agent of the person
who discloses confidential information in violation of a
prohibition made applicable to the person under this subsection
is subject to the same sanctions and penalties that would apply
to the comptroller or applicable state agency or an employee of
the comptroller or applicable state agency for that disclosure.
Added by Acts 2005, 79th Leg., Ch.
403, Sec. 1, eff. June 17, 2005.
Added by Acts 2005, 79th Leg., Ch.
899, Sec. 2.01, eff. August 29, 2005.
Sec. 2115.003. STATE AGENCIES SUBJECT TO MANDATORY RECOVERY
AUDITS. (a) The comptroller shall require that recovery audits
be performed on the payments to vendors made by each state agency
that has total expenditures during a state fiscal biennium in an
amount that exceeds $100 million. Each state agency described by
this subsection shall provide the recovery audit consultant with
all information necessary for the audit.
(b) The comptroller may exempt from the mandatory recovery audit
process a state agency that has a low proportion of its
expenditures made to vendors, according to criteria the
comptroller adopts by rule after consideration of the likely
costs and benefits of performing recovery audits for agencies
that make relatively few or small payments to vendors.
Added by Acts 2005, 79th Leg., Ch.
403, Sec. 1, eff. June 17, 2005.
Added by Acts 2005, 79th Leg., Ch.
899, Sec. 2.01, eff. August 29, 2005.
Sec. 2115.004. PAYMENT TO CONTRACTORS. (a) A state agency
shall pay, from recovered money appropriated for the purpose, the
recovery audit consultant responsible for obtaining for the
agency a reimbursement from a vendor.
(b) A state agency shall expend or return to the federal
government any federal money that is recovered through a recovery
audit conducted under this chapter. The state agency shall
expend or return the federal money in accordance with the rules
of the federal program through which the agency received the
federal money.
Added by Acts 2005, 79th Leg., Ch.
403, Sec. 1, eff. June 17, 2005.
Added by Acts 2005, 79th Leg., Ch.
899, Sec. 2.01, eff. August 29, 2005.
Sec. 2115.005. FORWARDING REPORTS. (a) The comptroller shall
provide copies, including electronic form copies, of any reports
received from a consultant contracting under Section 2115.002 to:
(1) the governor;
(2) the state auditor's office; and
(3) the Legislative Budget Board.
(b) The comptroller shall provide the copies required by
Subsection (a) not later than the seventh day after the date the
comptroller receives the consultant's report.
(c) Not later than January 1 of each odd-numbered year, the
comptroller shall issue a report to the legislature summarizing
the contents of all reports received under this chapter during
the state fiscal biennium ending August 31 of the previous year.
Added by Acts 2005, 79th Leg., Ch.
403, Sec. 1, eff. June 17, 2005.
Added by Acts 2005, 79th Leg., Ch.
899, Sec. 2.01, eff. August 29, 2005.