Substitute House Bill No. 7092 proposes significant amendments to existing laws governing state agency payments and the governance of associated foundations. A key provision prohibits state agencies from making payments exceeding fifty thousand dollars to employees resigning or retiring to avoid litigation costs or under nondisparagement agreements, effective October 1, 2025. The bill introduces new conditions for permissible payments, such as administrative leave pending investigations and settlement agreements authorized by the Attorney General, while ensuring that no agreement can prevent employees from making complaints or providing information as required by law. Additionally, the bill mandates that foundations associated with state agencies have a governing board, undergo annual audits if they have significant receipts, and submit financial statements to relevant state agencies, thereby enhancing transparency and accountability.

The bill also modifies the requirements for foundations with endowment funds exceeding $1.5 million, necessitating detailed annual reports to legislative leaders that include governing board member lists and financial statements. It clarifies that this information will be public under the Freedom of Information Act, while protecting the identities of anonymous donors prior to July 1, 2017. Other amendments streamline auditing processes, raise the threshold for personal service agreements requiring approval, and eliminate certain previous requirements, such as the obligation for state agencies to adopt a complaint policy. Overall, the bill aims to promote fiscal responsibility, accountability, and transparency in the operations of state agencies and their associated foundations.

Statutes affected:
Raised Bill: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123
GOS Joint Favorable Substitute: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123
File No. 515: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123
APP Joint Favorable Substitute: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123
File No. 919: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123
File No. 976: 4-40b, 4-37f, 2-90, 2-90d, 4-216, 1-123