HBA-MPM H.B. 2759 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2759
By: Smith
Public Education
4/9/2001
Introduced



BACKGROUND AND PURPOSE 

Current law requires school districts to file a copy of their annual
audited financial report with the Texas Education Agency (TEA) by the 120th
day after the end of the fiscal year.  State law also requires state
agencies to use uniform accounting and financial reporting procedures that
comply with generally accepted accounting principles established by the
Governmental Accounting Standards Board (GASB) and the American Institute
of Certified Public Accountants.  Beginning with the 2001-2002 school year,
districts will be required to report under new revised guidelines
promulgated by GASB in Statement 34.  The revisions set forth in Statement
34 are extensive and will bring major changes to the reporting of public
school financing.  This new method of reporting will require districts to
provide a more comprehensive report based on additional information
acquired by the district, thereby creating a need for more preparation
time.  An additional 30 days would give districts extra time to complete
and file the revised annual audited financial  report.  House Bill 2759
requires a school districts to file its report with TEA on the 150th day
rather than the 120th day after the end of the fiscal year. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2759 amends the Education Code to require a school district to
file its annual report with the Texas Education Agency no later than the
150th day rather than the 120th day after the end of the fiscal year for
which the audit was made.  

EFFECTIVE DATE

September 1, 2001.  The Act applies beginning with the annual audit of
school districts for the 2001-2002 school year.