Bill Text: TX HB1433 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to efficiency audits for certain political subdivisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-21 - Filed [HB1433 Detail]
Download: Texas-2025-HB1433-Introduced.html
| By: Hickland | H.B. No. 1433 | |
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| relating to efficiency audits for certain political subdivisions. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 140, Local Government Code, is amended | ||
| by adding Section 140.014 to read as follows: | ||
| Sec. 140.014. EFFICIENCY AUDIT. (a) In this section: | ||
| (1) "Efficiency audit" means an investigation of the | ||
| operations of a political subdivision to examine fiscal management, | ||
| efficiency, and utilization of resources. | ||
| (2) "No-new-revenue tax rate" means the | ||
| no-new-revenue tax rate calculated under Chapter 26, Tax Code. | ||
| (3) "Tax year" has the meaning assigned by Section | ||
| 1.04, Tax Code. | ||
| (b) This section applies only to a political subdivision | ||
| other than a school district that is defined as a taxing unit by | ||
| Section 1.04, Tax Code. | ||
| (c) Except as provided by Subsection (d), the governing body | ||
| of a political subdivision that adopts an ad valorem tax rate that | ||
| exceeds the no-new-revenue tax rate for five consecutive tax years | ||
| shall conduct an efficiency audit. | ||
| (c-1) A tax year that occurred before the 2022 tax year is | ||
| not included in a determination made under Subsection (c) that a | ||
| political subdivision adopted an ad valorem tax rate that exceeds | ||
| the no-new-revenue tax rate for five consecutive tax years. This | ||
| subsection expires January 1, 2027. | ||
| (d) The governing body of a political subdivision all or | ||
| part of which is located in an area declared a disaster area by the | ||
| governor under Chapter 418, Government Code, may hold an election | ||
| to seek voter approval to adopt a tax rate that exceeds the | ||
| no-new-revenue tax rate during the two-year period following the | ||
| date of the declaration without conducting an efficiency audit | ||
| otherwise required under this section. | ||
| (e) A political subdivision must pay for the costs | ||
| associated with an efficiency audit required under this section. | ||
| (f) An auditor selected by the governing body of a political | ||
| subdivision must maintain independence from the political | ||
| subdivision and complete the efficiency audit not later than three | ||
| months after the date the auditor was selected. | ||
| (g) The governing body of a political subdivision must hold | ||
| an open meeting to discuss the results of an efficiency audit | ||
| conducted under this section. Not later than 30 days after the date | ||
| of the open meeting, the results of an efficiency audit conducted | ||
| under this section must be posted on the political subdivision's | ||
| Internet website. | ||
| (h) A political subdivision shall provide all documents, | ||
| records, and personnel requested by the auditor as needed to | ||
| conduct the audit in an efficient manner. | ||
| SECTION 2. This Act takes effect September 1, 2025. | ||
