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 and overseeing their execution. The audits will evaluate the economy, efficiency, and effectiveness of department operations, including program outcomes. Departments must cover the costs of these audits, and the state auditor will determine the expenses involved.

Additionally, the bill outlines the process for selecting external auditors, the scope of the audits, and the reporting requirements. The state auditor must prepare a report on the audit findings and submit it to relevant legislative committees and the audited department. An implementation plan for any recommendations must be delivered by the department's administrative head within 90 days of receiving the audit report. The bill also repeals Section 322.017 of the Government Code, indicating a shift in how efficiency audits are conducted. 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)