HB 3666 Texas House · 89th Legislature (2025)

Relating to the program of internal auditing conducted by state agencies.

HB 3666 requires all Texas state agencies to implement a standardized internal auditing program. It mandates that agencies create annual risk-based audit plans and conduct periodic reviews of three key areas: financial systems, operational controls, and information technology systems. The bill defines internal auditing as an independent process to evaluate controls and improve organizational effectiveness, without adding new funding or altering existing audit types. This applies directly to every department, board, or commission in the Texas executive branch.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
Apr 2025
Senate Passage
Governor
Introduced Mar 25, 2025 Last action May 16, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 6 edits · Apr 29, 2025
MODERATE
This bill updates Texas Government Code provisions related to internal auditing standards and requirements. The changes modernize definitions, clarify audit plan requirements, and adjust effective dates based on legislative approval thresholds.
Scope change
The bill's scope remains focused on state agency internal auditing programs, but definitions and requirements have been refined to align with current professional standards.
DEFINITION

Added new definition for 'Advisory services' to distinguish consulting activities from assurance services.

Repealed the definition of 'State agency' to align with updated statutory language.

REQUIREMENT

Updated audit plan requirements to emphasize risk assessment techniques and clearer identification of individual audits.

Modified auditor duties to include preparing both advisory and assurance services engagement results.

TIMELINE

Changed effective date from September 1, 2025 to immediate effect if two-thirds legislative vote is achieved, otherwise September 1, 2025.

TECHNICAL

Updated internal audit standards reference to clarify compliance with Global Internal Audit Standards and Institute of Internal Auditors guidelines.

Floor votes · House Apr 28, 2025

How they voted

1339
Passed · 4 other
Total votes 146
Apr 28, 2025
D Democratic60
59 Yea 1
98% Yea
R Republican86
74 Yea 9 Nay 3
86% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
26
Key actions
7
Committee
7
May 16, 2025
Committee
Referred to Business & Commerce
upper
May 16, 2025
Introduced
Read first time
upper
Apr 29, 2025
Introduced
Received from the House
upper
Apr 29, 2025
Lower · Passed
Passed
lower
Apr 28, 2025
Lower · Passed
Passed to engrossment
lower
Apr 16, 2025
Lower · Passed
Committee report sent to Calendars
lower
Apr 15, 2025
Lower · Passed
Committee report distributed
lower
Apr 7, 2025
Lower · Passed
Reported favorably as substituted
lower
Apr 2, 2025
Lower · Passed
Left pending in committee
lower
Apr 2, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Mar 25, 2025
Committee
Referred to Delivery of Government Efficiency
lower
Mar 25, 2025
Introduced
Read first time
lower
2 primary · 2 co-sponsors

Sponsors