Bill > SB1347

This bill establishes a comprehensive framework for mandatory efficiency audits of all Texas state agencies, including higher education institutions, to be conducted every six years by an external auditor selected by the state auditor. The bill defines an "efficiency audit" as a thorough evaluation of an agency's economic performance, operational effectiveness, and program outcomes, with the goal of identifying cost savings and improvement opportunities. Each audit must examine the agency's resources (financial, staff, and technological) to ensure they are being used effectively and aligned with intended program goals, and must recommend ways to reduce costs, consolidate functions, eliminate duplicate efforts, and improve service delivery. After the audit, the state auditor must prepare a detailed report by November 1st of the audit year, submitting it to legislative committee chairs and the audited agency, with both parties required to publish the report on their websites. The audited agency must then develop and submit an implementation plan within 90 days, explaining how they will address the audit recommendations, including justifications for any recommendations they choose not to implement. The bill stipulates that agencies cannot be audited in the same year they undergo sunset review, and the first audit schedule must be adopted by January 1, 2026, with the act taking effect on September 1, 2025.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1347