Bill Text: TX SB1437 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the requirement that certain municipalities and counties conduct an efficiency audit before holding an election to approve the adoption of certain ad valorem tax rates.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-04-06 - Left pending in committee [SB1437 Detail]

Download: Texas-2021-SB1437-Introduced.html

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87R9080 SMT-D
By: Bettencourt S.B. No. 1437

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