HB 5023

relating to a periodic comprehensive performance audit of certain
operations of hospital districts located in populous counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter C, Chapter 281, Health and Safety
Code, is amended by adding Section 281.0495 to read as follows:
Sec. 281.0495.  PERIODIC COMPREHENSIVE PERFORMANCE AUDIT.
(a)  The commissioners court shall contract at least once every five
years with an independent auditor for a comprehensive performance
audit of the district's management, accounting practices,
financial controls, recordkeeping, and compliance with applicable
(b)  The audit required under this section must include:
(1)  an evaluation of the performance of:
(A)  the district in each area described by
(B)  the district's vendors with respect to each
contract between the vendor and the district; and
(2)  a determination whether the district's management
adheres to the best practices and national standards applicable to
the administration of hospitals and hospital systems.
(c)  The auditor shall produce and provide to the district
and commissioners court a written audit report that describes any
deficiencies identified during the audit and includes the auditor's
recommendations to address those deficiencies.
(d)  If the district maintains a publicly accessible
Internet website, the district shall post the report described by
Subsection (c) in a conspicuous location on the district's website.
(e)  The commissioners court shall hold a public hearing on
the report described by Subsection (c).
SECTION 2.  This Act takes effect September 1, 2025.