Substitute House Bill No. 7092 aims to enhance the governance and financial oversight of state agencies and their associated foundations, implementing recommendations from the Auditors of Public Accounts. Effective October 1, 2025, the bill prohibits state agencies from making payments exceeding fifty thousand dollars to employees resigning or retiring to avoid litigation costs or under nondisparagement agreements, with exceptions for administrative leave, settlement agreements authorized by the Attorney General, collective bargaining agreements, and legal requirements. It also ensures that no agreement can prevent employees from making complaints or providing information as per existing whistleblower protections. The bill revises the governance structure of foundations, requiring them to have a governing board, adhere to generally accepted accounting principles, and undergo annual audits if they have significant financial activity.

Additionally, the bill introduces amendments to the operational framework between state agencies and foundations, including a requirement for foundations with endowment funds over $1.5 million to submit detailed annual reports to legislative leaders, which will be considered public records, while protecting the anonymity of certain donors. It establishes clear guidelines for written agreements between state agencies and foundations, including reimbursement obligations and a tiered structure for cash compensation based on the foundation's endowment value. The bill also streamlines auditing processes, raising the threshold for personal service agreements requiring approval to $50,000, and mandates that quasi-public agencies submit annual reports within six months of their fiscal year-end. Notably, it removes previous requirements for state agencies to adopt a complaint policy and for the Department of Administrative Services to create a model policy, reflecting a shift towards more definitive legal language and structured oversight.

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