Texas 2023 - 88th Regular

Texas House Bill HB3116 Compare Versions

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1	1	88R11479 LRM-F
2	2	By: Smithee H.B. No. 3116
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the conduct of efficiency audits of state agencies.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle C, Title 3, Government Code, is amended
10	10	by adding Chapter 327 to read as follows:
11	11	CHAPTER 327. EFFICIENCY AUDITS OF STATE AGENCIES
12	12	Sec. 327.001. DEFINITIONS. In this chapter:
13	13	(1) "Audit plan" has the meaning assigned by Section
14	14	321.001.
15	15	(2) "Department" has the meaning assigned by Section
16	16	321.001.
17	17	(3) "Efficiency audit" means an evaluation of the
18	18	economy, efficiency, and effectiveness of department operations,
19	19	including the effectiveness of department programs at achieving
20	20	intended objectives.
21	21	(4) "External auditor" means a private entity selected
22	22	by the state auditor to conduct an efficiency audit of a department.
23	23	(5) "Legislative audit committee" means the committee
24	24	described by Section 321.002.
25	25	Sec. 327.002. REQUIRED EFFICIENCY AUDIT. (a) Each
26	26	department, including an institution of higher education, as
27	27	defined by Section 61.003, Education Code, shall undergo an
28	28	efficiency audit in accordance with this chapter.
29	29	(b) The state auditor, subject to the legislative audit
30	30	committee's approval, shall adopt a schedule for conducting the
31	31	efficiency audits required by this chapter and include the annual
32	32	portion of the schedule in the audit plan under Section 321.013.
33	33	The schedule must provide for each department to be audited every
34	34	six years. A department may not be audited under this chapter in
35	35	the same year that the department is reviewed under Chapter 325
36	36	(Texas Sunset Act).
37	37	(c) A department required by law to perform an internal
38	38	efficiency audit is not required to perform the audit in any year
39	39	the department is audited under this chapter.
40	40	(d) A department shall pay the costs incurred by the state
41	41	auditor relating to an efficiency audit required by this chapter.
42	42	The state auditor shall determine the costs of the audit and the
43	43	department shall pay the amount of those costs promptly on receipt
44	44	of a statement from the state auditor regarding those costs.
45	45	Sec. 327.003. SELECTION AND SUPERVISION OF AUDITOR. (a)
46	46	Not later than March 1 of the year in which an efficiency audit of a
47	47	department is scheduled under this chapter, the state auditor shall
48	48	contract with an external auditor to conduct the audit.
49	49	(b) The state auditor shall oversee the external auditor and
50	50	ensure that the efficiency audit is conducted in accordance with
51	51	the requirements of this chapter.
52	52	(c) The external auditor is not subject to direction from
53	53	the department being audited.
54	54	Sec. 327.004. SCOPE OF AUDIT. (a) The state auditor shall
55	55	establish the scope of each efficiency audit conducted under this
56	56	chapter with the external auditor contracted to perform the audit.
57	57	(b) At a minimum, an efficiency audit must:
58	58	(1) examine all state resources, including financial
59	59	resources, staff, and technology, to determine whether those
60	60	resources:
61	61	(A) are used effectively and efficiently to
62	62	achieve the desired outcome for a department's program
63	63	beneficiaries; and
64	64	(B) are not used for purposes other than the
65	65	intended goals of the audited programs;
66	66	(2) identify and make recommendations for cost savings
67	67	and reallocation of resources to improve the effectiveness of
68	68	audited programs; and
69	69	(3) identify opportunities for improving services
70	70	through consolidation of functions, outsourcing, and elimination
71	71	of duplicative efforts.
72	72	Sec. 327.005. REPORT TO LEGISLATURE. (a) Not later than
73	73	November 1 of the year an efficiency audit is conducted under this
74	74	chapter, the state auditor shall:
75	75	(1) prepare a report with the external auditor
76	76	contracted to perform the audit and submit the report to the chairs
77	77	of the standing committees of each house of the legislature with
78	78	primary jurisdiction over the audited department; and
79	79	(2) submit the report, recommendations, and complete
80	80	audit to the audited department.
81	81	(b) The state auditor and the audited department shall
82	82	publish the report, recommendations, and complete efficiency audit
83	83	on the entity's Internet website.
84	84	Sec. 327.006. REQUIRED IMPLEMENTATION PLAN. Not later than
85	85	the 90th day after receiving the complete audit and
86	86	recommendations, the administrative head of the audited department
87	87	shall deliver a plan for implementing the recommendations to the
88	88	legislative audit committee and to the chairs of the standing
89	89	committees of each house of the legislature with primary
90	90	jurisdiction over the audited department. The implementation plan
91	91	must include a justification for any recommendation the audited
92	92	department declines to implement.
93	93	SECTION 2. Section 322.017, Government Code, is repealed.
94	94	SECTION 3. Not later than January 1, 2024, the state auditor
95	95	shall adopt the schedule required by Section 327.002, Government
96	96	Code, as added by this Act, for conducting efficiency audits of each
97	97	department.
98	98	SECTION 4. This Act takes effect September 1, 2023.