SB 2016

relating to the administration and operations of the state
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 321.002(a), Government Code, is amended
(a)  The legislative audit committee consists of:
(2)  the speaker of the house of representatives;
(3)  the chairman of the senate finance committee;
(4)  three members [one member] of the senate appointed
(5)  the chairman of the house appropriations
(6)  the chairman of the house ways and means
(7)  two members of the house of representatives
appointed by the speaker of the house of representatives.
SECTION 2.  Section 321.004(b), Government Code, is amended
(b)  The eleventh [seventh] member's duty to the committee
ends when the member casts the tie-breaking vote and the matter is
SECTION 3.  Chapter 321, Government Code, is amended by
adding Section 321.0139 to read as follows:
Sec. 321.0139.  AUDIT OF POPULOUS COUNTIES.  (a)  In this
section, "federal funds" means money received by a county from the
federal government as a result of an act of the United States
(b)  Not later than January 1, 2026, the State Auditor shall
conduct a one-time audit of each county in this state with a
population of one million or more concerning the use by the county
of federal funds received on or after January 1, 2021.
(c)  The audit under this section is a compliance audit to
(1)  whether the county has obligated, expended,
received, and used federal funds in accordance with the purpose for
which those funds were made available to the county;
(2)  whether the county has obligated, expended,
received, and used federal funds in accordance with any
limitations, restrictions, conditions, or mandatory directions
imposed by law on those obligations, expenditures, receipts, or
(3)  whether the records, books, and accounts of the
county fairly and accurately reflect the county's financial and
fiscal operations relating to the obligation, receipt,
expenditure, and use of federal funds;
(4)  whether the collection of federal funds by the
county is in accordance with applicable laws and regulations; and
(5)  whether federal funds received by the county from
the federal government and held by the county have been properly and
legally administered while in the county's custody.
(d)  The State Auditor shall prepare a written audit report
for each audit conducted under this section in the manner required
(e)  This section expires January 1, 2027.
SECTION 4.  As soon as practicable after the effective date
of this Act, the lieutenant governor and the speaker of the house of
representatives shall appoint the additional members of the
legislative audit committee in accordance with Section 321.002(a),
Government Code, as amended by this Act.
SECTION 5.  This Act takes effect September 1, 2025.