Texas 2025 - 89th Regular

Texas Senate Bill SB1427 Compare Versions

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Old	New	Differences
1	1	89R13652 LRM-F
2	2	By: Hughes S.B. No. 1427
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the conduct of efficiency audits of state agencies.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C, Title 3, Government Code, is amended
12	12	by adding Chapter 327 to read as follows:
13	13	CHAPTER 327. EFFICIENCY AUDITS OF STATE AGENCIES
14	14	Sec. 327.001. DEFINITIONS. In this chapter:
15	15	(1) "Audit plan" has the meaning assigned by Section
16	16	321.001.
17	17	(2) "Department" has the meaning assigned by Section
18	18	321.001.
19	19	(3) "Efficiency audit" means an evaluation of the
20	20	economy, efficiency, and effectiveness of department operations,
21	21	including the effectiveness of department programs at achieving
22	22	intended objectives.
23	23	(4) "External auditor" means a private entity selected
24	24	by the state auditor to conduct an efficiency audit of a department.
25	25	(5) "Legislative audit committee" means the committee
26	26	described by Section 321.002.
27	27	Sec. 327.002. REQUIRED EFFICIENCY AUDIT. (a) Each
28	28	department, including an institution of higher education, as
29	29	defined by Section 61.003, Education Code, shall undergo an
30	30	efficiency audit in accordance with this chapter.
31	31	(b) The state auditor, subject to the legislative audit
32	32	committee's approval, shall adopt a schedule for conducting the
33	33	efficiency audits required by this chapter and include the annual
34	34	portion of the schedule in the audit plan under Section 321.013.
35	35	The schedule must provide for each department to be audited every
36	36	six years. A department may not be audited under this chapter in
37	37	the same year that the department is reviewed under Chapter 325
38	38	(Texas Sunset Act).
39	39	(c) A department required by law to perform an internal
40	40	efficiency audit is not required to perform the audit in any year
41	41	the department is audited under this chapter.
42	42	(d) A department shall pay the costs incurred by the state
43	43	auditor relating to an efficiency audit required by this chapter.
44	44	The state auditor shall determine the costs of the audit and the
45	45	department shall pay the amount of those costs promptly on receipt
46	46	of a statement from the state auditor regarding those costs.
47	47	Sec. 327.003. SELECTION AND SUPERVISION OF AUDITOR. (a)
48	48	Not later than March 1 of the year in which an efficiency audit of a
49	49	department is scheduled under this chapter, the state auditor shall
50	50	contract with an external auditor to conduct the audit.
51	51	(b) The state auditor shall oversee the external auditor and
52	52	ensure that the efficiency audit is conducted in accordance with
53	53	the requirements of this chapter.
54	54	(c) The external auditor is not subject to direction from
55	55	the department being audited.
56	56	Sec. 327.004. SCOPE OF AUDIT. (a) The state auditor shall
57	57	establish the scope of each efficiency audit conducted under this
58	58	chapter with the external auditor contracted to perform the audit.
59	59	(b) At a minimum, an efficiency audit must:
60	60	(1) examine all state resources, including financial
61	61	resources, staff, and technology, to determine whether those
62	62	resources:
63	63	(A) are used effectively and efficiently to
64	64	achieve the desired outcome for a department's program
65	65	beneficiaries; and
66	66	(B) are not used for purposes other than the
67	67	intended goals of the audited programs;
68	68	(2) identify and recommend cost savings and
69	69	reallocation of resources to improve the effectiveness of audited
70	70	programs; and
71	71	(3) identify opportunities for improving services
72	72	through consolidation of functions, outsourcing, and elimination
73	73	of duplicative efforts.
74	74	Sec. 327.005. REPORT TO LEGISLATURE. (a) Not later than
75	75	November 1 of the year an efficiency audit is conducted under this
76	76	chapter, the state auditor shall:
77	77	(1) prepare a report with the external auditor
78	78	contracted to perform the audit and submit the report to the chairs
79	79	of the standing committees of each house of the legislature with
80	80	primary jurisdiction over the audited department; and
81	81	(2) submit the report, recommendations, and complete
82	82	audit to the audited department.
83	83	(b) The state auditor and the audited department shall
84	84	publish the report, recommendations, and complete efficiency audit
85	85	on the entity's Internet website.
86	86	Sec. 327.006. REQUIRED IMPLEMENTATION PLAN. (a) Not later
87	87	than the 90th day after receiving the complete audit and
88	88	recommendations, the administrative head of the audited department
89	89	shall deliver a plan for implementing the recommendations to:
90	90	(1) the legislative audit committee; and
91	91	(2) the chairs of the standing committees of each
92	92	house of the legislature with primary jurisdiction over the audited
93	93	department.
94	94	(b) The implementation plan must include a justification
95	95	for any recommendation the audited department declines to
96	96	implement.
97	97	SECTION 2. Section 322.017, Government Code, is repealed.
98	98	SECTION 3. Not later than January 1, 2026, the state auditor
99	99	shall adopt the schedule required by Section 327.002, Government
100	100	Code, as added by this Act, for conducting efficiency audits of each
101	101	department.
102	102	SECTION 4. This Act takes effect September 1, 2025.