BILL ANALYSIS Senate Research Center S.B. 2016 89R14179 GP-F By: Bettencourt Local Government 3/21/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Concerns have been raised about how large counties in Texas have spent federal funds in recent years, especially with large financing packages passed by the United States Congress. S.B. 2016 requires that the state auditor conduct a one-time audit of each county in this state with a population of more than one million concerning the use by the county of federal funds received on or after January 1, 2021. This will ensure that counties have spent the funds allocated to them by congress in an appropriate manner established by the enacting legislation. Lastly, S.B. 2016 also expands the number of elected officials on the legislative audit committee to ensure proper oversight my members of the legislature. As proposed, S.B. 2016 amends current law relating to the administration and operations of the state auditor's office. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 321.002(a), Government Code, as follows: (a) Provides that the legislative audit committee consists of: (1)-(3) makes no changes to these subdivisions; (4) three members, rather than one member, of the senate appointed by the lieutenant governor; (5)-(6) makes nonsubstantive changes to these subdivisions; and (7) two members of the house of representatives appointed by the speaker of the house of representatives. SECTION 2. Amends Section 321.004(b), Government Code, to make a conforming change. SECTION 3. Amends Chapter 321, Government Code, by adding Section 321.0139, as follows: Sec. 321.0139. AUDIT OF POPULOUS COUNTIES. (a) Defines "federal funds." (b) Requires the state auditor, not later than January 1, 2026, to conduct a one-time audit of each county in this state with a population of one million or more concerning the use by the county of federal funds received on or after January 1, 2021. (c) Provides that the audit under this section is a compliance audit to determine whether the county has obligated, expended, received, and used federal funds in accordance with the purpose for which those funds were made available to the county; whether the county has obligated, expended, received, and used federal funds in accordance with any limitations, restrictions, conditions, or mandatory directions imposed by law on those obligations, expenditures, receipts, or uses; whether the records, books, and accounts of the county fairly and accurately reflect the county's financial and fiscal operations relating to the obligation, receipt, expenditure, and use of federal funds; whether the collection of federal funds by the county is in accordance with applicable laws and regulations; and whether federal funds received by the county from the federal government and held by the county have been properly and legally administered while in the county's custody. (d) Requires the state auditor to prepare a written audit report for each audit conducted under this section in the manner required by Section 321.014 (Audit Reports). (e) Provides that this section expires January 1, 2027. SECTION 4. Requires the lieutenant governor and the speaker of the house of representatives, as soon as practicable after the effective date of this Act, to appoint the additional members of the legislative audit committee in accordance with Section 321.002(a), Government Code, as amended by this Act. SECTION 5. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2016
89R14179 GP-F By: Bettencourt
Local Government
3/21/2025
As Filed
Senate Research Center
S.B. 2016
89R14179 GP-F
By: Bettencourt
Local Government
3/21/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Concerns have been raised about how large counties in Texas have spent federal funds in recent years, especially with large financing packages passed by the United States Congress. S.B. 2016 requires that the state auditor conduct a one-time audit of each county in this state with a population of more than one million concerning the use by the county of federal funds received on or after January 1, 2021. This will ensure that counties have spent the funds allocated to them by congress in an appropriate manner established by the enacting legislation. Lastly, S.B. 2016 also expands the number of elected officials on the legislative audit committee to ensure proper oversight my members of the legislature.
As proposed, S.B. 2016 amends current law relating to the administration and operations of the state auditor's office.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 321.002(a), Government Code, as follows:
(a) Provides that the legislative audit committee consists of:
(1)-(3) makes no changes to these subdivisions;
(4) three members, rather than one member, of the senate appointed by the lieutenant governor;
(5)-(6) makes nonsubstantive changes to these subdivisions; and
(7) two members of the house of representatives appointed by the speaker of the house of representatives.
SECTION 2. Amends Section 321.004(b), Government Code, to make a conforming change.
SECTION 3. Amends Chapter 321, Government Code, by adding Section 321.0139, as follows:
Sec. 321.0139. AUDIT OF POPULOUS COUNTIES. (a) Defines "federal funds."
(b) Requires the state auditor, not later than January 1, 2026, to conduct a one-time audit of each county in this state with a population of one million or more concerning the use by the county of federal funds received on or after January 1, 2021.
(c) Provides that the audit under this section is a compliance audit to determine whether the county has obligated, expended, received, and used federal funds in accordance with the purpose for which those funds were made available to the county; whether the county has obligated, expended, received, and used federal funds in accordance with any limitations, restrictions, conditions, or mandatory directions imposed by law on those obligations, expenditures, receipts, or uses; whether the records, books, and accounts of the county fairly and accurately reflect the county's financial and fiscal operations relating to the obligation, receipt, expenditure, and use of federal funds; whether the collection of federal funds by the county is in accordance with applicable laws and regulations; and whether federal funds received by the county from the federal government and held by the county have been properly and legally administered while in the county's custody.
(d) Requires the state auditor to prepare a written audit report for each audit conducted under this section in the manner required by Section 321.014 (Audit Reports).
(e) Provides that this section expires January 1, 2027.
SECTION 4. Requires the lieutenant governor and the speaker of the house of representatives, as soon as practicable after the effective date of this Act, to appoint the additional members of the legislative audit committee in accordance with Section 321.002(a), Government Code, as amended by this Act.
SECTION 5. Effective date: September 1, 2025.