The bill, S.B. No. 1347, introduces a new chapter, Chapter 327, to the Government Code, which mandates efficiency audits for state agencies, including institutions of higher education. Each department is required to undergo an efficiency audit every six years, with the state auditor responsible for scheduling these audits, subject to approval from the legislative audit committee. The bill outlines the definitions of key terms such as "efficiency audit" and "external auditor," and specifies that the costs of the audits will be borne by the departments being audited. Additionally, it establishes the process for selecting and supervising external auditors, ensuring they operate independently from the departments being audited.

The bill also requires the state auditor to prepare and submit a report on the audit findings to the legislature and the audited department, which must be published online. Furthermore, it mandates that the administrative head of the audited department must deliver an implementation plan for the audit recommendations within 90 days of receiving the audit report, including justifications for any recommendations not adopted. Notably, Section 322.017 of the Government Code is repealed, indicating a shift in how efficiency audits are managed. The act is set to take effect on September 1, 2025, with a requirement for the state auditor to adopt the audit schedule by January 1, 2026.

Statutes affected:
Introduced: Government Code 322.017 (Government Code 322)