The Governor

Executive Order

RP 66

Relating to the Texas Youth Commission.

WHEREAS, on March 2, 2007, the Legislative Audit Committee met pursuant to Texas Government Code §2104.021 to consider allegations regarding gross fiscal mismanagement at the Texas Youth Commission ("TYC"); and

WHEREAS, the Committee found that gross fiscal mismanagement exists at TYC; and

WHEREAS, pursuant to Texas Government Code Chapter 2104 the Committee, recommended the appointment of a conservator for TYC or that TYC be directed to enter into a rehabilitation plan pursuant to Texas Government Code §2104.0215;

NOW, THEREFORE, I, Rick Perry, Governor of the State of Texas, by virtue of the power and authority vested in me by the Constitution and laws of the State of Texas, do hereby order the following:

Special Master. A Special Master is hereby appointed to investigate all matters relating to gross fiscal mismanagement of TYC. The Special Master shall report directly to the Governor. The Board of TYC (the "Board") shall, as necessary, grant authority to the Special Master to investigate all related matters, and direct all employees to cooperate with the Special Master. The Special Master will work with the executive director to develop and implement the Rehabilitation Plan.

Rehabilitation Plan. TYC shall enter into a rehabilitation plan and engage the services of an independent management consulting team, approved by the Governor, and by the presiding officer and assistant presiding officer of the legislative audit committee. The Rehabilitation Plan shall be developed and submitted to the Governor’s Office and the Legislative Audit Committee for review by March 16, 2007. The Rehabilitation plan shall ensure that TYC complies with state fiscal management policies. The Rehabilitation Plan shall remain in place until the Legislative Audit Committee certifies to me that the condition of gross fiscal mismanagement in TYC no longer exists.

Other State Agency Support. The assistance of the Office of the Attorney General is requested and the Texas Department of Public Safety and the Texas Department of Criminal Justice are directed to provide assistance and support as requested.

Report. At all times throughout the investigation, the Special Master shall keep the Governor fully informed. Not later than the 60 days from the date of this Executive Order, a comprehensive report shall be delivered to the Governor’s office and to the Legislative Audit Committee. The report shall include a description of the measures taken to ensure that TYC complies with state fiscal management policies.

Cooperation. All affected agencies and other public entities shall cooperate fully with the Special Master during the implementation of and execution of this order.

This executive order supersedes all previous orders and shall remain in effect and in full force until modified, amended, rescinded, or superseded by me or by a succeeding Governor.

Given under my hand this the 2nd day of March, 2007.

Rick Perry, Governor

TRD-200700979