SB 399

relating to a biennial audit of the effectiveness and efficiencies
of state services provided to homeless individuals.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 321, Government Code, is amended by
adding Section 321.0139 to read as follows:
Sec. 321.0139.  AUDIT OF HOMELESSNESS SERVICES.  (a)  In each
even-numbered year, the State Auditor shall require an audit to be
conducted regarding the effectiveness and efficiency of all
homelessness services that are provided by the state agencies
identified under Subsections (e) and (f).
(a-1)  Notwithstanding Subsection (a), 2028 is the first
year that an audit is required to be conducted under this section.
This subsection expires January 1, 2029.
(b)  Not later than March 1 of the year in which an audit is
required under this section, the State Auditor shall engage an
independent external auditor to conduct the audit. The external
auditor may not be under the direction of any agency subject to the
(c)  The State Auditor shall supervise the external auditor
to ensure that the audit is conducted in accordance with the
(1)  examine all state resources used in providing
services to homeless individuals, including financial resources,
(2)  according to the purposes of and activities funded
by the agencies identified under Subsections (e) and (f), their
programs, and participating community service providers, assess
the effectiveness and efficiency of the agencies, programs, and
providers in helping homeless individuals advance toward
self-sufficiency, including an assessment of the percentage of
(A)  who maintain housing for at least 12 months
after placement in the housing, disaggregated according to the
primary payor for the housing and including payors other than the
(B)  whose children are enrolled in school or
(i)  participate in at least 20 hours per
week of paid employment, including paid apprenticeships;
(ii)  are engaged in occupational or
vocational training programs; and
(iii)  earn a living wage, as defined by the
applicable local workforce development board;
(D)  who are ineligible to participate in at least
20 hours per week of paid employment described by Paragraph (C)(i),
disaggregated by the reason for ineligibility;
(E)  with mental health needs, who engage in
ongoing mental health care services;
(F)  with addiction or substance use disorders,
who engage in ongoing treatment services;
(G)  with a history of involvement with the
criminal justice system that continued during the 12-month period
following the provision of the applicable services; and
(H)  with a history of involvement with the
criminal justice system that ceased during the 12-month period
following the provision of the applicable services;
(A)  eliminating poorly performing programs,
(B)  ending contractual or funding relationships
with poorly performing community service providers;
(C)  consolidating duplicative or overlapping
programs, services, and functions; and
(D)  reallocating state resources to ensure that
the outcomes in relation to the criteria described by Subdivision
(2) are achieved in the most effective and economical manner; and
(4)  based on the effectiveness at achieving the
outcomes described by Subdivision (2), rate each applicable agency,
program, or community service provider as "unsatisfactory,"
"satisfactory," or "exemplary."
(e)  The following agencies must be included in the audit:
(1)  the Texas Department of Housing and Community
(2)  the Health and Human Services Commission;
(3)  the Department of Family and Protective Services;
(4)  the Texas Education Agency;
(5)  the Texas Workforce Commission;
(6)  the Texas Veterans Commission; and
(7)  the Texas Department of Criminal Justice.
(f)  In addition to the agencies listed in Subsection (e),
the State Auditor may select other state agencies for inclusion in
(g)  The external auditor must:
(1)  complete the audit not later than the 90th day
after the date the auditor is engaged; and
(2)  present its results and recommendations to the
State Auditor and the heads of the agencies subject to the audit.
(h)  Not later than November 1 of the year in which an audit
is completed under this section, the State Auditor shall prepare
and submit to the governor, the speaker of the house of
representatives, the lieutenant governor, and the Legislative
Budget Board a report regarding the audit and recommendations for
improvement in the agencies, programs, and community service
providers assessed by the State Auditor.
(i)  The full audit and State Auditor's report must be
published on the State Auditor's Internet website.
(j)  The audit shall be paid for by using existing resources
allocated for the purpose of auditing the agencies identified under
SECTION 2.  This Act takes effect September 1, 2025.