The bill, H.B. No. 178, introduces a new section, Section 140.015, to the Local Government Code, which mandates efficiency audits for certain political subdivisions in Texas that exceed the no-new-revenue tax rate for five consecutive tax years. The bill defines an "efficiency audit" as an investigation into the fiscal management and resource utilization of a political subdivision, excluding school districts. It stipulates that the governing body of such subdivisions must conduct these audits, with specific provisions allowing for exceptions in disaster areas and outlining the responsibilities for funding and conducting the audits.

Additionally, the bill requires that the governing body must hold an open meeting to discuss the audit results, which must be posted on the subdivision's website within 30 days. The auditor selected for the efficiency audit must maintain independence and complete the audit within three months of selection. The bill also emphasizes the obligation of the political subdivision to provide necessary documents and personnel to facilitate the audit process. The provisions of this act will take effect 91 days after the legislative session concludes.

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