The bill, S.B. No. 1427, 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 defines key terms related to the audits, such as "efficiency audit," "external auditor," and "legislative audit committee." It also stipulates that departments must cover the costs of these audits and outlines the responsibilities of the state auditor in selecting and overseeing external auditors.

Additionally, the bill requires the state auditor to prepare and submit a report on the audit findings to the legislature and the audited department, which must also publish the report online. The administrative head of the audited department is tasked with delivering an implementation plan for the audit recommendations within 90 days of receiving the report, including justifications for any recommendations not adopted. The bill repeals Section 322.017 of the Government Code and mandates that the state auditor adopt the audit schedule by January 1, 2026, with the act taking effect on September 1, 2025.

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