89R12446 CS-F By: Capriglione H.B. No. 3770 A BILL TO BE ENTITLED AN ACT relating to efficiency reviews of state agencies conducted by the Legislative Budget Board. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 322.017, Government Code, is amended by amending Subsections (a), (b), and (c) and adding Subsections (b-1) and (f) to read as follows: (a) In this section, "state agency" has the meaning assigned by Section 2056.001, except that the term includes an institution of higher education, as defined by Section 61.003, Education Code. (b) The board shall [periodically may] review and analyze the effectiveness and efficiency of the policies, programs, management, fiscal affairs, and operations of state agencies. (b-1) The board shall establish a schedule for the review and analysis conducted under Subsection (b). Each state fiscal biennium, the board shall review and analyze at least: (1) 25 state agencies, which must include at least one state agency from each article of the General Appropriations Act; and (2) 40 programs operated by the state agencies under review during that biennium, which must include at least one program operated by each state agency under review. (c) Not later than September 1 of each even-numbered year, the [The] board shall report the findings of each [the] review and analysis to the governor and the legislature. A report on a reviewed program must: (1) be published in a format prescribed by the board; and (2) include: (A) recommendations for strategies to improve effectiveness, efficiency, and service to taxpayers; and (B) a table that: (i) analyzes all costs, savings, cost avoidance, expected change to state revenue, and any non-fiscal taxpayer benefit predicted to result from increased program effectiveness and efficiency if the strategies recommended under Paragraph (A) were implemented; and (ii) presents the information described by Subparagraph (i) for a five-year period beginning with the suggested implementation date for the strategies recommended under Paragraph (A). (f) The director shall employ sufficient personnel to carry out the provisions of this section. SECTION 2. Sections 322.011, 322.0165, and 322.0171, Government Code, are repealed. SECTION 3. Notwithstanding Section 322.017(b-1), Government Code, as added by this Act, for the state fiscal biennium ending August 31, 2027, the Legislative Budget Board is required to review and analyze: (1) 12 state agencies; and (2) 20 programs operated by the 12 state agencies reviewed during that state fiscal biennium. SECTION 4. This Act takes effect September 1, 2025.