HBA-DMH H.B. 2869 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2869
By: Ramsay
County Affairs
7/16/2001
Enrolled


BACKGROUND AND PURPOSE 

Before the 77th Legislature convened, the House Committee on County Affairs
(county affairs) discussed the cost of county statutory duties and the
ability of county tax bases and fees to support such duties. County affairs
found that the lack of a central database and the lack of consistency in
the manner in which counties collect and store financial data makes it
difficult to evaluate these issues.  Sixty-three of the 254 counties in
Texas elected to participate in a study by responding to surveys.  The
information county affairs collected determined that some counties were
able to raise the funds necessary to meet statutory duties, while others
were running out of funding resources.  House Bill 2869 establishes the
Texas County Financial Data Advisory Committee and provides for a voluntary
uniform chart of account for counties. 

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 2869 amends the Local Government Code to create the Texas County
Financial Data Advisory Committee (committee) to study county financial
reporting requirements and systems and make recommendations to the
legislature and the comptroller of public accounts (comptroller) on ways in
which the collection and use of county financial data can be improved
without resulting in additional costs to counties.  The bill requires the
recommendations to address issues relating to county financial reporting
requirements such as: 

_uniformity; 

_duplicative reporting requirements; 

_the Government Accounting Standards Board's most recent reporting
standards; 

_electronic filing; and

_costs associated with meeting the requirements.

The bill requires the committee to develop and recommend a consolidated
uniform financial reporting procedure that does not impose a greater
reporting burden on counties than current practices and a voluntary uniform
chart of accounts for counties.  The bill authorizes the comptroller to
implement the recommendations of the committee for the reporting of
financial data and other pertinent information to the state. As soon as
practicable, but not later than September 1, 2002, the bill requires the
comptroller to adopt the uniform chart of accounts.  The bill authorizes a
county to use the uniform chart of accounts developed by the committee and
implemented by the comptroller in reporting financial data or other
pertinent information to the state.  The bill deletes the provision that
the comptroller is required to prescribe forms that the comptroller
considers will meet the needs of different counties.  

 The bill provides for the appointment, administration, and composition of
the committee, sets forth terms relating to its members, and provides for
the election of a presiding officer.  The bill requires the comptroller,
the Texas Association of Counties, and the Texas Conference of Urban
Counties to provide by agreement for the staff and other resources
necessary for the operations of the committee.  

EFFECTIVE DATE

September 1, 2001.