Bill Text: TX SB1427 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the conduct of efficiency audits of state agencies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-19 - Filed [SB1427 Detail]
Download: Texas-2025-SB1427-Introduced.html
| 89R13652 LRM-F | ||
| By: Hughes | S.B. No. 1427 | |
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| relating to the conduct of efficiency audits of state agencies. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle C, Title 3, Government Code, is amended | ||
| by adding Chapter 327 to read as follows: | ||
| CHAPTER 327. EFFICIENCY AUDITS OF STATE AGENCIES | ||
| Sec. 327.001. DEFINITIONS. In this chapter: | ||
| (1) "Audit plan" has the meaning assigned by Section | ||
| 321.001. | ||
| (2) "Department" has the meaning assigned by Section | ||
| 321.001. | ||
| (3) "Efficiency audit" means an evaluation of the | ||
| economy, efficiency, and effectiveness of department operations, | ||
| including the effectiveness of department programs at achieving | ||
| intended objectives. | ||
| (4) "External auditor" means a private entity selected | ||
| by the state auditor to conduct an efficiency audit of a department. | ||
| (5) "Legislative audit committee" means the committee | ||
| described by Section 321.002. | ||
| Sec. 327.002. REQUIRED EFFICIENCY AUDIT. (a) Each | ||
| department, including an institution of higher education, as | ||
| defined by Section 61.003, Education Code, shall undergo an | ||
| efficiency audit in accordance with this chapter. | ||
| (b) The state auditor, subject to the legislative audit | ||
| committee's approval, shall adopt a schedule for conducting the | ||
| efficiency audits required by this chapter and include the annual | ||
| portion of the schedule in the audit plan under Section 321.013. | ||
| The schedule must provide for each department to be audited every | ||
| six years. A department may not be audited under this chapter in | ||
| the same year that the department is reviewed under Chapter 325 | ||
| (Texas Sunset Act). | ||
| (c) A department required by law to perform an internal | ||
| efficiency audit is not required to perform the audit in any year | ||
| the department is audited under this chapter. | ||
| (d) A department shall pay the costs incurred by the state | ||
| auditor relating to an efficiency audit required by this chapter. | ||
| The state auditor shall determine the costs of the audit and the | ||
| department shall pay the amount of those costs promptly on receipt | ||
| of a statement from the state auditor regarding those costs. | ||
| Sec. 327.003. SELECTION AND SUPERVISION OF AUDITOR. (a) | ||
| Not later than March 1 of the year in which an efficiency audit of a | ||
| department is scheduled under this chapter, the state auditor shall | ||
| contract with an external auditor to conduct the audit. | ||
| (b) The state auditor shall oversee the external auditor and | ||
| ensure that the efficiency audit is conducted in accordance with | ||
| the requirements of this chapter. | ||
| (c) The external auditor is not subject to direction from | ||
| the department being audited. | ||
| Sec. 327.004. SCOPE OF AUDIT. (a) The state auditor shall | ||
| establish the scope of each efficiency audit conducted under this | ||
| chapter with the external auditor contracted to perform the audit. | ||
| (b) At a minimum, an efficiency audit must: | ||
| (1) examine all state resources, including financial | ||
| resources, staff, and technology, to determine whether those | ||
| resources: | ||
| (A) are used effectively and efficiently to | ||
| achieve the desired outcome for a department's program | ||
| beneficiaries; and | ||
| (B) are not used for purposes other than the | ||
| intended goals of the audited programs; | ||
| (2) identify and recommend cost savings and | ||
| reallocation of resources to improve the effectiveness of audited | ||
| programs; and | ||
| (3) identify opportunities for improving services | ||
| through consolidation of functions, outsourcing, and elimination | ||
| of duplicative efforts. | ||
| Sec. 327.005. REPORT TO LEGISLATURE. (a) Not later than | ||
| November 1 of the year an efficiency audit is conducted under this | ||
| chapter, the state auditor shall: | ||
| (1) prepare a report with the external auditor | ||
| contracted to perform the audit and submit the report to the chairs | ||
| of the standing committees of each house of the legislature with | ||
| primary jurisdiction over the audited department; and | ||
| (2) submit the report, recommendations, and complete | ||
| audit to the audited department. | ||
| (b) The state auditor and the audited department shall | ||
| publish the report, recommendations, and complete efficiency audit | ||
| on the entity's Internet website. | ||
| Sec. 327.006. REQUIRED IMPLEMENTATION PLAN. (a) Not later | ||
| than the 90th day after receiving the complete audit and | ||
| recommendations, the administrative head of the audited department | ||
| shall deliver a plan for implementing the recommendations to: | ||
| (1) the legislative audit committee; and | ||
| (2) the chairs of the standing committees of each | ||
| house of the legislature with primary jurisdiction over the audited | ||
| department. | ||
| (b) The implementation plan must include a justification | ||
| for any recommendation the audited department declines to | ||
| implement. | ||
| SECTION 2. Section 322.017, Government Code, is repealed. | ||
| SECTION 3. Not later than January 1, 2026, the state auditor | ||
| shall adopt the schedule required by Section 327.002, Government | ||
| Code, as added by this Act, for conducting efficiency audits of each | ||
| department. | ||
| SECTION 4. This Act takes effect September 1, 2025. | ||
