(a) After complying with the requirements of Subsection (h), the judges described by § 76.002 shall appoint a department director who must meet, at a minimum, the eligibility requirements for officers established under § 76.005.
(a-1) The department director shall perform or delegate the responsibility for performing the following duties:
(1) overseeing the daily operations of the department;
(2) preparing annually or biennially a budget for the department;
(3) negotiating and entering into contracts on behalf of the department;
(4) establishing policies and procedures for all functions of the department;
(5) developing personnel policies and procedures, including disciplinary proceedings; and
(6) establishing procedures and practices through which the department will address an employment-related grievance.

(b) The department director shall employ a sufficient number of officers and other employees to conduct presentence investigations, supervise and rehabilitate defendants placed on community supervision, enforce the conditions of community supervision, and staff community corrections facilities. A person employed under this subsection is an employee of the department and not of the judges or judicial districts.
(c) The judges described by § 76.002 may appoint for the department a fiscal officer, other than the county auditor. The fiscal officer is responsible for:
(1) managing and protecting funds, fees, state aid, and receipts to the same extent that a county auditor manages county funds and funds of other local entities;
(2) ensuring that financial transactions of the department are lawful and allowable; and
(3) prescribing accounting procedures for the department.
(d) The judges described by § 76.002 may appoint a person as fiscal officer only after investigating the person and determining that the person is:
(1) a person of unquestionably good moral character and intelligence; and
(2) a financial officer with at least two years’ experience in auditing and accounting.
(e) A fiscal officer appointed under this section, before beginning employment and not later than the 20th day after the date of appointment, shall:
(1) take an oath stating that the person meets the qualifications required by this section and will not have a personal interest in any contract entered into by the department; and
(2) execute a good and sufficient surety bond that:
(A) is in the amount of $5,000 or more;
(B) is approved by and payable to the judges described by § 76.002; and
(C) is conditioned on the faithful performance by the fiscal officer of the officer’s duties.
(f) The judges described by § 76.002 shall set the annual compensation of a fiscal officer appointed under this section, and the department shall pay all costs related to the functions of the fiscal officer.
(g) Subsections (c)-(f) do not diminish the rights of the following officers or entities to examine and audit accounts, records, receipts, and expenditures of a department:
(1) the county auditor of a county served by the department;
(2) the comptroller;
(3) the state auditor; and
(4) the division.
(h) When there is a vacancy in the position of department director, the judges described by § 76.002 shall:
(1) publicly advertise the position;
(2) post a job description, the qualifications for the position, and the application requirements;
(3) conduct a competitive hiring process and adhere to state and federal equal employment opportunity laws; and
(4) review applicants who meet the posted qualifications and comply with the application requirements.