Substitute House Bill No. 7092 seeks to enhance accountability and transparency in the financial operations of state agencies and their associated foundations by implementing several key amendments to existing statutes. The bill repeals Section 4-40b, replacing it with provisions that prohibit 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. Exceptions are made for payments related to administrative leave, settlement agreements authorized by the Attorney General, collective bargaining agreements, and other legal requirements. Additionally, the bill repeals and substitutes Section 4-37f, clarifying the governance of foundations, mandating annual reporting of board members, and requiring independent audits for foundations with significant financial activity.

Moreover, the bill introduces a tiered system for cash compensation from state agencies to foundations based on the market value of the foundation's endowment fund and mandates that foundations raise at least 15% of their total gifts for student support each fiscal year. It also modifies auditing procedures, allowing state agencies to contract for auditing services without prior approval from the Auditors of Public Accounts, while ensuring that auditors provide relevant information upon request. The bill removes certain requirements related to complaint policies and the involvement of the comptroller in annual audits, streamlining oversight processes. Overall, these changes aim to improve the governance and financial management of state agencies and their 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