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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirement that certain municipalities and |
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counties conduct an efficiency audit before holding an election to |
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approve the adoption of certain ad valorem tax rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.013 to read as follows: |
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Sec. 140.013. EFFICIENCY AUDITS OF CERTAIN MUNICIPALITIES |
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AND COUNTIES. (a) This section applies only to: |
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(1) a municipality with a population of 500,000 or |
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more; and |
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(2) a county with a population of one million or more. |
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(b) In this section, "efficiency audit" means an |
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investigation of the operations of a municipality or county to |
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examine fiscal management, efficiency, and utilization of |
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resources. |
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(c) The governing body of a municipality or county shall |
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conduct an efficiency audit before seeking voter approval under |
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Section 26.07, Tax Code, of an adopted ad valorem tax rate. The |
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municipality or county may not hold the election without complying |
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with the requirements of this section. |
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(d) A municipality or county must pay for the costs |
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associated with an efficiency audit. |
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(e) The governing body of a municipality or county must |
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select an auditor to conduct an efficiency audit: |
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(1) from the list of auditors approved by the state |
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auditor as required by Subsection (g); and |
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(2) not later than three months before the date on |
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which the municipality or county holds an election under Section |
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26.07, Tax Code. |
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(f) The state auditor's office shall establish guidelines |
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identifying the scope and areas of investigation of an efficiency |
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audit, including identification of resources being used |
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effectively and efficiently and identification of cost savings or |
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reallocations. The auditor selected by the governing body must |
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follow the guidelines established by the state auditor's office. |
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(g) The state auditor shall create and maintain a list of |
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approved auditors from which a municipality must choose an auditor |
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to conduct an efficiency audit. The state auditor must select |
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auditors to include on the list based on an auditor's: |
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(1) experience examining fiscal management and |
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efficiency of municipalities, counties, or other governmental |
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entities; and |
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(2) ability to minimize expenses associated with an |
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efficiency audit. |
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(h) An auditor selected to be included on the state |
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auditor's list under Subsection (g) must provide the state auditor |
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with information regarding fees and expenses, including the methods |
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for calculating audit fees. The state auditor must make this |
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information available to the governing body of a municipality or |
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county on request. |
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(i) An auditor selected by the governing body of a |
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municipality or county must maintain independence from the |
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municipality or county and complete the efficiency audit not later |
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than the 60th day after the date the auditor is selected. |
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(j) Before an election at which a municipality or county |
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seeks voter approval under Section 26.07, Tax Code, of an adopted ad |
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valorem tax rate, the governing body of the municipality or county |
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must hold an open meeting to discuss the results of the efficiency |
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audit conducted under this section. Not later than the 30th day |
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before the date of the election, the results of an efficiency audit |
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conducted under this section must be posted on the municipality's |
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or county's Internet website. |
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(k) A municipality or county shall provide all documents, |
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records, and personnel requested by the auditor as needed to |
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conduct the audit in an efficient manner. |
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(l) The state auditor may adopt rules necessary to implement |
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this section. |
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SECTION 2. Not later than December 1, 2021, the state |
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auditor's office shall establish the guidelines and create the list |
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of auditors required by Section 140.013, Local Government Code, as |
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added by this Act. |
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SECTION 3. Section 140.013, Local Government Code, as added |
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by this Act, applies only to an election to approve the adoption of |
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an ad valorem tax rate required to be held by Section 26.07, Tax |
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Code, that is held on or after January 1, 2022. |
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SECTION 4. This Act takes effect September 1, 2021. |