Texas 2025 - 89th Regular

Texas Senate Bill SB1943 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R14926 MCK-F
2	2	By: Parker S.B. No. 1943
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the review and audit of certain state agency
10	10	operations.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 325.002, Government Code, is amended by
13	13	adding Subdivision (4) to read as follows:
14	14	(4) "Regulatory agency" means a department,
15	15	commission, board, or other agency that:
16	16	(A) is created by the constitution or by statute;
17	17	(B) is in the executive branch of state
18	18	government;
19	19	(C) has statewide authority; and
20	20	(D) has authority to deny, grant, renew, revoke,
21	21	or suspend a license, certification, or other authorization to
22	22	engage in an activity.
23	23	SECTION 2. Section 325.009, Government Code, is amended by
24	24	adding Subsections (b-1) and (b-2) to read as follows:
25	25	(b-1) The commission shall provide information on how the
26	26	public may participate in the commission's review of a state agency
27	27	and provide input on a state agency's performance. The commission
28	28	shall, to the extent practicable, solicit input from parties
29	29	interested in a state agency's operations.
30	30	(b-2) Each state agency being reviewed by the commission
31	31	under this chapter shall at the beginning of the review:
32	32	(1) post a notice on the state agency's Internet
33	33	website informing the public:
34	34	(A) that the state agency is being reviewed by
35	35	the commission; and
36	36	(B) how the public may participate in the
37	37	commission's review of the state agency and provide input on the
38	38	state agency's performance; and
39	39	(2) if the state agency being reviewed is a regulatory
40	40	agency:
41	41	(A) notify each person licensed, certified, or
42	42	otherwise authorized by the regulatory agency to engage in an
43	43	activity regulated by the agency of the public hearing under this
44	44	section at which the agency will be reviewed; and
45	45	(B) solicit input from persons provided notice
46	46	under Paragraph (A) regarding the regulatory agency's performance.
47	47	SECTION 3. Section 325.010(b), Government Code, is amended
48	48	to read as follows:
49	49	(b) In the report the commission shall include:
50	50	(1) its findings regarding the criteria prescribed by
51	51	Section 325.011, except Section 325.011(14);
52	52	(2) its recommendations based on the matters
53	53	prescribed by Section 325.012, except recommendations relating to
54	54	criteria prescribed by Section 325.011(14); [and]
55	55	(3) if the agency being reviewed is a regulatory
56	56	agency, an analysis of the regulatory agency's performance during
57	57	the preceding 10 years or since the last review of the agency under
58	58	this chapter, whichever is longer, based on the agency's
59	59	performance measure targets as listed in the General Appropriations
60	60	Act;
61	61	(4) an evaluation of the agency's performance measure
62	62	targets listed in the General Appropriations Act, including whether
63	63	the targets are:
64	64	(A) aligned with the mission, goals, and
65	65	objectives of the agency; and
66	66	(B) appropriate for assessing the agency's
67	67	achievement of the goals listed; and
68	68	(5) other information the commission considers
69	69	necessary for a complete review of the agency.
70	70	SECTION 4. Section 325.012(a), Government Code, is amended
71	71	to read as follows:
72	72	(a) In its report on a state agency, the commission shall:
73	73	(1) make recommendations on the abolition,
74	74	continuation, or reorganization of each affected state agency and
75	75	its advisory committees and on the need for the performance of the
76	76	functions of the agency and its advisory committees;
77	77	(2) make recommendations on the consolidation,
78	78	transfer, or reorganization of programs within state agencies not
79	79	under review when the programs duplicate functions performed in
80	80	agencies under review;
81	81	(3) make recommendations to improve the operations of
82	82	the agency, its policy body, and its advisory committees, including
83	83	management recommendations that do not require a change in the
84	84	agency's enabling statute; [and]
85	85	(4) make recommendations on the continuation or
86	86	abolition of each reporting requirement imposed on the agency by
87	87	law; and
88	88	(5) make recommendations to improve the agency's key
89	89	performance measures through the addition, amendment, or removal of
90	90	the performance measure targets listed in the General
91	91	Appropriations Act.
92	92	SECTION 5. Chapter 325, Government Code, is amended by
93	93	adding Section 325.016 to read as follows:
94	94	Sec. 325.016. LIMITED REVIEW OF CERTAIN REGULATORY
95	95	AGENCIES. (a) During the two-year period beginning on September 1
96	96	of the sixth year after the date a regulatory agency was last
97	97	continued under Section 325.015, the commission shall conduct a
98	98	limited review of the agency's rulemaking, including:
99	99	(1) an assessment of the agency's rulemaking process
100	100	and the extent to which the agency has encouraged participation by
101	101	the public in making its rules and decisions and the extent to which
102	102	the public participation has resulted in rules that benefit the
103	103	public;
104	104	(2) the extent to which the agency adopts and enforces
105	105	rules relating to potential conflicts of interest of its employees;
106	106	and
107	107	(3) the necessity and effectiveness of rules adopted
108	108	by the agency.
109	109	(b) Not later than September 1 of the sixth year after the
110	110	date a regulatory agency was last continued under Section 325.015,
111	111	the agency shall report to the commission the information in
112	112	Subsection (a) related to rulemaking and rule review activities of
113	113	the agency.
114	114	(c) Not later than September 1 of the year that is two years
115	115	after the date the review under this section begins, the commission
116	116	shall prepare a written report on the commission's review under
117	117	this section.
118	118	(d) The report prepared by the commission under this section
119	119	is a public record.
120	120	SECTION 6. Subtitle C, Title 3, Government Code, is amended
121	121	by adding Chapter 327 to read as follows:
122	122	CHAPTER 327. EFFICIENCY AUDITS OF STATE AGENCIES
123	123	Sec. 327.001. DEFINITIONS. In this chapter:
124	124	(1) "Audit plan" has the meaning assigned by Section
125	125	321.001.
126	126	(2) "Commission" means the Sunset Advisory
127	127	Commission.
128	128	(3) "Efficiency audit" means an evaluation of the
129	129	economy, efficiency, and effectiveness of state agency operations,
130	130	including:
131	131	(A) determining whether the state agency is
132	132	managing or using its resources, including state money, personnel,
133	133	property, equipment, and space, in an economical and efficient
134	134	manner;
135	135	(B) identifying causes of inefficiencies or
136	136	uneconomical practices, including inadequacies in management
137	137	information systems, internal and administrative procedures,
138	138	organizational structure, use of resources, allocation of
139	139	personnel, purchasing, agency policies, and equipment;
140	140	(C) determining whether financial, program, and
141	141	statistical reports of the state agency contain useful data and are
142	142	fairly presented;
143	143	(D) determining whether, according to
144	144	established or designated program objectives, responsibilities or
145	145	duties, statutes and rules, program performance criteria, or
146	146	program evaluation standards, the objectives and intended benefits
147	147	of the agency's program are being achieved efficiently and
148	148	effectively; and
149	149	(E) determining whether, according to
150	150	established or designated program objectives, responsibilities or
151	151	duties, statutes and rules, program performance criteria, or
152	152	program evaluation standards, the agency's program duplicates,
153	153	overlaps, or conflicts with another state program.
154	154	(4) "External auditor" means a private entity selected
155	155	by the state auditor to conduct an efficiency audit of a state
156	156	agency.
157	157	(5) "Legislative audit committee" means the committee
158	158	described by Section 321.002.
159	159	(6) "State agency" means an entity expressly made
160	160	subject to Chapter 325 (Texas Sunset Act).
161	161	Sec. 327.002. REQUIRED EFFICIENCY AUDIT. (a) Each state
162	162	agency shall undergo an efficiency audit in accordance with this
163	163	chapter.
164	164	(b) The state auditor, subject to the legislative audit
165	165	committee's approval, shall adopt a schedule for conducting the
166	166	efficiency audits required by this chapter and include the annual
167	167	portion of the schedule in the audit plan under Section 321.013.
168	168	The schedule must provide for each state agency to be audited during
169	169	the two-year period beginning on September 1 four years before the
170	170	date the state agency is scheduled to be abolished under Chapter 325
171	171	(Texas Sunset Act).
172	172	(c) A state agency required by law to perform an internal
173	173	efficiency audit is not required to perform the audit in any year
174	174	the state agency is audited under this chapter.
175	175	(d) A state agency shall pay the costs incurred by the state
176	176	auditor relating to an efficiency audit required by this chapter.
177	177	The state auditor shall determine the costs of the audit and the
178	178	state agency shall pay the amount of those costs promptly on receipt
179	179	of a statement from the state auditor regarding those costs.
180	180	(e) The state auditor, subject to the legislative audit
181	181	committee's approval, may determine, in the interests of
182	182	efficiency, whether the audit should be performed by the state
183	183	auditor or an external auditor.
184	184	Sec. 327.003. SELECTION AND SUPERVISION OF AUDITOR. (a)
185	185	Not later than March 1 of the year in which an efficiency audit of a
186	186	state agency is scheduled under this chapter, the state auditor may
187	187	contract with an external auditor to conduct the audit.
188	188	(b) The state auditor, in cooperation with the Legislative
189	189	Budget Board, shall oversee the external auditor and ensure that
190	190	the efficiency audit is conducted in accordance with the
191	191	requirements of this chapter and the scope of the audit established
192	192	under this chapter.
193	193	(c) The external auditor is not subject to direction from
194	194	the state agency being audited.
195	195	Sec. 327.004. SCOPE OF AUDIT. (a) The state auditor, in
196	196	cooperation with the Legislative Budget Board, shall establish the
197	197	scope of each efficiency audit conducted under this chapter.
198	198	(b) At a minimum, an efficiency audit must:
199	199	(1) examine state resources, including financial
200	200	resources, staff, personal property, real property, and
201	201	technology, to determine whether those resources:
202	202	(A) are used effectively and efficiently to
203	203	achieve the desired outcome for a state agency's program
204	204	beneficiaries; and
205	205	(B) are not used for purposes other than the
206	206	intended goals of the audited programs;
207	207	(2) identify and make recommendations for cost savings
208	208	and reallocation of resources to improve the effectiveness of
209	209	audited programs; and
210	210	(3) identify opportunities for improving services
211	211	through consolidation of functions, outsourcing, and elimination
212	212	of duplicative efforts.
213	213	Sec. 327.005. REPORT TO LEGISLATURE. (a) Not later than
214	214	November 1 of the year an efficiency audit is conducted under this
215	215	chapter, the state auditor, in cooperation with the Legislative
216	216	Budget Board and in consultation with any external auditor
217	217	contracted to perform the audit, shall:
218	218	(1) prepare a report of the audit with the
219	219	recommendations; and
220	220	(2) submit the report, recommendations, and complete
221	221	audit to the commission, the governor, the lieutenant governor, the
222	222	speaker of the house of representatives, the legislative audit
223	223	committee, the chairs of the standing committees of each house of
224	224	the legislature with primary jurisdiction over the audited state
225	225	agency, and the audited state agency.
226	226	(b) The state auditor and the audited state agency shall
227	227	publish the report, recommendations, and complete efficiency audit
228	228	on the entity's Internet website.
229	229	Sec. 327.006. REQUIRED IMPLEMENTATION PLAN. Not later than
230	230	the 90th day after the date of receiving the complete audit and
231	231	recommendations, the administrative head of the audited state
232	232	agency shall deliver a plan for implementing the recommendations to
233	233	the commission, the governor, the lieutenant governor, the speaker
234	234	of the house of representatives, the legislative audit committee,
235	235	and the chairs of the standing committees of each house of the
236	236	legislature with primary jurisdiction over the audited state
237	237	agency. The implementation plan must include a reasoned
238	238	justification for any recommendation the audited state agency
239	239	declines to implement.
240	240	SECTION 7. Section 322.017, Government Code, is repealed.
241	241	SECTION 8. Not later than January 1, 2026, the state auditor
242	242	shall adopt the schedule required by Section 327.002, Government
243	243	Code, as added by this Act, for conducting efficiency audits of each
244	244	state agency subject to that section.
245	245	SECTION 9. This Act takes effect September 1, 2025.