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 outlines the definitions of key terms such as "efficiency audit" and "external auditor," and specifies that departments must cover the costs associated with these audits. Additionally, it establishes the process for selecting and supervising external auditors, ensuring they operate independently from the departments being audited.

Furthermore, 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. An implementation plan for the audit recommendations must be submitted by the department's administrative head within 90 days of receiving the audit results. 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)