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A BILL TO BE ENTITLED
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AN ACT
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relating to efficiency audits for certain political subdivisions. |
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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 140.014 to read as follows: |
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Sec. 140.014. EFFICIENCY AUDIT. (a) In this section: |
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(1) "Efficiency audit" means an investigation of the |
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operations of a political subdivision to examine fiscal management, |
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efficiency, and utilization of resources. |
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(2) "No-new-revenue tax rate" means the |
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no-new-revenue tax rate calculated under Chapter 26, Tax Code. |
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(3) "Tax year" has the meaning assigned by Section |
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1.04, Tax Code. |
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(b) This section applies only to a political subdivision |
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other than a school district that is defined as a taxing unit by |
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Section 1.04, Tax Code. |
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(c) Except as provided by Subsection (d), the governing body |
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of a political subdivision that adopts an ad valorem tax rate that |
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exceeds the no-new-revenue tax rate for five consecutive tax years |
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shall conduct an efficiency audit. |
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(c-1) A tax year that occurred before the 2022 tax year is |
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not included in a determination made under Subsection (c) that a |
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political subdivision adopted an ad valorem tax rate that exceeds |
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the no-new-revenue tax rate for five consecutive tax years. This |
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subsection expires January 1, 2027. |
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(d) The governing body of a political subdivision all or |
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part of which is located in an area declared a disaster area by the |
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governor under Chapter 418, Government Code, may hold an election |
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to seek voter approval to adopt a tax rate that exceeds the |
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no-new-revenue tax rate during the two-year period following the |
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date of the declaration without conducting an efficiency audit |
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otherwise required under this section. |
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(e) A political subdivision must pay for the costs |
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associated with an efficiency audit required under this section. |
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(f) An auditor selected by the governing body of a political |
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subdivision must maintain independence from the political |
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subdivision and complete the efficiency audit not later than three |
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months after the date the auditor was selected. |
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(g) The governing body of a political subdivision must hold |
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an open meeting to discuss the results of an efficiency audit |
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conducted under this section. Not later than 30 days after the date |
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of the open meeting, the results of an efficiency audit conducted |
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under this section must be posted on the political subdivision's |
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Internet website. |
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(h) A political subdivision 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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SECTION 2. This Act takes effect September 1, 2025. |