TX HB12

Defines "regulatory agency" as any executive branch department, commission, board, or agency with statewide authority to grant, deny, renew, revoke, or suspend licenses, certifications, or other authorizations

Requires the Sunset Advisory Commission to provide information on public participation in agency reviews and requires agencies under review to post website notices and notify licensees of public hearings on agency performance

Mandates commission reports include a 10-year performance analysis of regulatory agencies based on performance measures and targets from the General Appropriations Act, plus evaluation of whether targets align with agency mission and goals

Creates a limited review process for regulatory agencies with identified rulemaking deficiencies, focusing on public participation in rulemaking, conflict of interest rules, and identification of unnecessary or ineffective rules

Establishes mandatory efficiency audits for state agencies subject to the Texas Sunset Act, to be conducted by the state auditor or external auditors four years before each agency's scheduled sunset review, with agencies paying audit costs

Requires efficiency audits to examine resource management, identify cost savings, and recommend improvements through consolidation, outsourcing, or elimination of duplicative efforts, with reports due by November 1 and agency implementation plans due within 90 days

Takes effect September 1, 2025, with the state auditor required to adopt the efficiency audit schedule by January 1, 2026