The bill, H.B. No. 159, introduces a new section to the Local Government Code that mandates efficiency audits for certain political subdivisions in Texas, excluding school districts. An "efficiency audit" is defined as an investigation into the operations of a political subdivision to assess fiscal management, efficiency, and resource utilization. The governing body of a political subdivision that adopts an ad valorem tax rate exceeding the no-new-revenue tax rate for five consecutive tax years is required to conduct an efficiency audit. However, if the political subdivision is located in a disaster area declared by the governor, it may seek voter approval to exceed the no-new-revenue tax rate without conducting the audit for a two-year period following the disaster declaration.

The bill outlines specific requirements for the efficiency audit process, including that the political subdivision must bear the costs of the audit, and the auditor must maintain independence from the subdivision. The audit must be completed within three months of the auditor's selection, and the governing body is required to hold an open meeting to discuss the audit results. Additionally, the results must be posted on the political subdivision's website within 30 days of the meeting. The provisions of this bill are set to take effect 91 days after the end of the legislative session.

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