89R4614 JAM-F     By: Sparks S.B. No. 399       A BILL TO BE ENTITLED   AN ACT   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   audit under this section.          (c)  The State Auditor shall supervise the external auditor   to ensure that the audit is conducted in accordance with the   requirements of this section.          (d)  The audit shall:                (1)  examine all state resources used in providing   services to homeless individuals, including financial resources,   employees, and infrastructure;                (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   beneficiaries:                      (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   beneficiary;                      (B)  whose children are enrolled in school or   other educational programs;                      (C)  if eligible, who:                            (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;                (3)  make recommendations for:                      (A)  eliminating poorly performing programs,   services, and functions;                      (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   Affairs;                (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   the audit.          (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   Subsections (e) and (f).          SECTION 2.  This Act takes effect September 1, 2025.