🔴An Act relating to the review and audit of certain state agency operations.

HB 12

🔴 HB 12: Private audit mandates and repeal of public oversight

What it says it does:
The bill claims to improve government efficiency by requiring performance audits for every state agency. It says these audits will help eliminate waste and overlap.

What it actually changes:
It forces all agencies to undergo mandatory audits, but allows those audits to be outsourced to private firms with no competitive process. Agencies are required to pay the audit costs themselves, with no spending cap. It also removes the Legislative Budget Board’s oversight authority and shifts that power to appointed officials.

Who is pushing for it:
Texas Public Policy Foundation, Americans for Prosperity, Texans for Lawsuit Reform, Cicero Institute, Goldwater Institute, and other groups focused on deregulation supported the bill during testimony.

Who benefits:
Private audit firms, political appointees, and organizations that want to reduce the size of state government or roll back regulatory authority.

Who gets left out or exposed:
Public agencies that serve Texans, including licensing boards, health and safety inspectors, and professional oversight commissions. These groups could be financially pressured, labeled inefficient, or stripped of their rulemaking power with little opportunity to respond.

Why this matters long term:
HB 12 changes how oversight is handled in Texas. It replaces a public system with one that can be run by private contractors who are not accountable to voters. This opens the door for politically motivated audits that can quietly weaken or eliminate public programs.

What to watch next:
Watch for new bills that use audit results to justify cutting or privatizing agencies. Also keep track of which private firms are awarded state audit contracts and whether they have political or lobbying ties.

Bottom line:
HB 12 does not improve accountability. It removes legislative oversight, gives audit control to unelected actors, and puts the cost on the agencies themselves. What is being called efficiency may end up shifting power and public money into private hands.