SB 1803, Sen 2nd Rdg, Amnd #F1

Amend SB 1803 (senate committee report) by striking SECTION 1 of the bill (page 1, line 22, through page 2, line 42) and substituting the following:

SECTION 1. Chapter 321, Government Code, is amended by adding Section 321.0139 to read as follows:

Sec. 321.0139. AUDIT OF HOMELESSNESS SERVICES. (a) In each even-numbered year, the State Auditor shall require an audit to be conducted regarding the effectiveness and efficiency of all homelessness services that are provided by the state agencies identified under Subsections (e) and (f).

(a-1) Notwithstanding Subsection (a), 2026 is the first year that an audit is required to be conducted under this section. This subsection expires January 1, 2027.

(b) Not later than March 1 of the year in which an audit is required under this section, the State Auditor shall engage an independent external auditor to conduct the audit. The external auditor may not be under the direction of any agency subject to the audit under this section.

(c) The State Auditor shall supervise the external auditor to ensure that the audit is conducted in accordance with the requirements of this section.

(d) The audit shall:

(1) examine all state resources used in providing services to homeless individuals, including financial resources, employees, and infrastructure;

(2) according to the purposes of and activities funded by the agencies identified under Subsections (e) and (f), their programs, and participating community service providers, assess the effectiveness and efficiency of the agencies, programs, and providers in helping homeless individuals advance toward self-sufficiency, including an assessment of the percentage of beneficiaries:

(A) who maintain housing for at least 12 months after placement in the housing, disaggregated according to the primary payor for the housing and including payors other than the beneficiary;

(B) whose children are enrolled in school or other educational programs;

(i) participate in at least 20 hours per week of paid employment, including paid apprenticeships;

(ii) are engaged in occupational or vocational training programs; and

(iii) earn a living wage, as defined by the applicable local workforce development board;

(D) who are ineligible to participate in at least 20 hours per week of paid employment described by Paragraph (C)(i), disaggregated by the reason for ineligibility;

(E) with mental health needs, who engage in ongoing mental health care services;

(F) with addiction or substance use disorders, who engage in ongoing treatment services;

(G) with a history of involvement with the criminal justice system that continued during the 12-month period following the provision of the applicable services; and

(H) with a history of involvement with the criminal justice system that ceased during the 12-month period following the provision of the applicable services;

(3) make recommendations for:

(A) eliminating poorly performing programs, services, and functions;

(B) ending contractual or funding relationships with poorly performing community service providers;

(D) reallocating state resources to ensure that the outcomes in relation to the criteria described by Subdivision (2) are achieved in the most effective and economical manner; and

(4) based on the effectiveness at achieving the outcomes described by Subdivision (2), rate each applicable agency, program, or community service provider as "unsatisfactory," "satisfactory," or "exemplary."

(e) The following agencies must be included in the audit:

(1) the Texas Department of Housing and Community Affairs;

(2) the Health and Human Services Commission;

(3) the Department of Family and Protective Services;

(4) the Texas Education Agency;

(5) the Texas Workforce Commission;

(6) the Texas Veterans Commission; and

(7) the Texas Department of Criminal Justice.

(f) In addition to the agencies listed in Subsection (e), the State Auditor may select other state agencies for inclusion in the audit.

(g) The external auditor must:

(1) complete the audit not later than the 90th day after the date the auditor is engaged; and

(2) present its results and recommendations to the State Auditor and the heads of the agencies subject to the audit.

(h) Not later than November 1 of the year in which an audit is completed under this section, the State Auditor shall prepare and submit to the governor, the speaker of the house of representatives, the lieutenant governor, and the Legislative Budget Board a report regarding the audit and recommendations for improvement in the agencies, programs, and community service providers assessed by the State Auditor.

(i) The full audit and State Auditor's report must be published on the State Auditor's Internet website.

(j) The audit shall be paid for by using existing resources allocated for the purpose of auditing the agencies identified under Subsections (e) and (f).