89S20251 CS-F     By: Hickland H.B. No. 178       A BILL TO BE ENTITLED   AN ACT   relating to efficiency audits for certain political subdivisions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 140, Local Government Code, is amended   by adding Section 140.015 to read as follows:          Sec. 140.015.  EFFICIENCY AUDIT. (a)  In this section:                (1)  "Efficiency audit" means an investigation of the   operations of a political subdivision to examine fiscal management,   efficiency, and utilization of resources.                (2)  "No-new-revenue tax rate" means the   no-new-revenue tax rate calculated under Chapter 26, Tax Code.                (3)  "Tax year" has the meaning assigned by Section   1.04, Tax Code.          (b)  This section applies only to a political subdivision   other than a school district that is defined as a taxing unit by   Section 1.04, Tax Code.          (c)  Except as provided by Subsection (d), the governing body   of a political subdivision that adopts an ad valorem tax rate that   exceeds the no-new-revenue tax rate for five consecutive tax years   shall conduct an efficiency audit.          (c-1)  A tax year that occurred before the 2022 tax year is   not included in a determination made under Subsection (c) that a   political subdivision adopted an ad valorem tax rate that exceeds   the no-new-revenue tax rate for five consecutive tax years. This   subsection expires January 1, 2027.          (d)  The governing body of a political subdivision all or   part of which is located in an area declared a disaster area by the   governor under Chapter 418, Government Code, may hold an election   to seek voter approval to adopt a tax rate that exceeds the   no-new-revenue tax rate during the two-year period following the   date of the declaration without conducting an efficiency audit   otherwise required under this section.          (e)  A political subdivision must pay for the costs   associated with an efficiency audit required under this section.          (f)  An auditor selected by the governing body of a political   subdivision must maintain independence from the political   subdivision and complete the efficiency audit not later than three   months after the date the auditor was selected.          (g)  The governing body of a political subdivision must hold   an open meeting to discuss the results of an efficiency audit   conducted under this section. Not later than 30 days after the date   of the open meeting, the results of an efficiency audit conducted   under this section must be posted on the political subdivision's   Internet website.          (h)  A political subdivision shall provide all documents,   records, and personnel requested by the auditor as needed to   conduct the audit in an efficient manner.          SECTION 2.  This Act takes effect on the 91st day after the   last day of the legislative session.