Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB12 by Bell, Keith (relating to the review and audit of certain state agency operations.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB12, Committee Report 1st House, Substituted: a negative impact of ($2,812,466) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($1,426,233)
2027
($1,386,233)
2028
($1,386,233)
2029
($1,386,233)
2030
($1,386,233)
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($1,426,233)
8.0
2027
($1,386,233)
8.0
2028
($1,386,233)
8.0
2029
($1,386,233)
8.0
2030
($1,386,233)
8.0
Fiscal Analysis
The bill would require the Sunset Advisory Commission to solicit public input and provide information to the public on how they may participate in the Sunset review process. The bill would require Sunset reports related to regulatory agencies to include an analysis of the agency's performance over at least a ten year timespan based on the agency's performance measure targets listed in the General Appropriations Act. The bill would require the commission to (1) evaluate each reviewed agency's performance measures to determine whether they align with the agency's mission, goals, and objectives and whether they adequately assess the agency's achievement of its goals and (2) recommend improvements to each reviewed agency's performance measures. The bill would also require the commission to perform limited-scope reviews of regulatory agencies' rulemaking six years following their most recent Sunset continuation. These reviews would focus on public participation in the rulemaking process, adoption, and enforcement of conflict of interest provisions, and the necessity and effectiveness of rules agencies adopt.
The bill would require the State Auditor, subject to Legislative Audit Committee approval, to adopt a schedule for conducting efficiency audits of all entities subject to Sunset review. The bill would exempt a state agency required by law to perform an internal efficiency audit from performing such an audit in any year in which the agency is audited under the bill. The bill would require a state agency to pay the costs incurred by the State Auditor relating to an efficiency audit as would be required by the bill.
Methodology
Based on information provided by the Sunset Advisory Commission, this analysis assumes eight additional staff would be required to implement the provisions of the bill at a cost of $1,426,233 in fiscal year 2026 and $1,386,233 in subsequent years. This staff includes seven attorneys to determine the necessity and effectiveness of the rules regulatory agencies adopt and one data analyst to facilitate the review of agency rulemaking and analyze performance measure data.
It is assumed that administrative costs to the State Auditor's Office and audited agencies could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
116 Sunset Advisory Commission, 308 State Auditor's Office, 452 Department of Licensing and Regulation, 503 Texas Medical Board, 507 Texas Board of Nursing, 529 Health and Human Services Commission