BILL ANALYSIS

C.S.H.B. 2730

By: Rosenthal

County Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Constituents have noted the lack of a state law regarding budget preparation and budget amendments for emergency services districts in a county with a population of three million or more and also have noted that current law does not contemplate approval of such a district's budget or an amendment to that budget through public input. There are concerns that this lack of input may result in budgets that do not properly fund a district's rapid growth or address other needs in the district. C.S.H.B. 2730 seeks to provide transparency in the adoption of the annual budget for an emergency services district in a county with a population of more than three million by requiring the board of emergency services commissioners of such a district to hold an open meeting to consider the proposed budget for the following fiscal year before voting on the adoption of the budget and to hold another open meeting to consider any proposed amendment to that budget after its initial adoption.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2730 amends the Health and Safety Code to establish provisions relating to the adoption and amendment of an annual budget by an emergency services district located wholly in a county with a population of more than three million. The bill requires the board of emergency services commissioners for such a district, after notice, to hold an open meeting to consider the proposed budget for the following fiscal year and provides for the preparation and adoption of the budget as follows:

· adoption of the budget may occur at the same meeting at which the board takes final action to set the tax rate but only if the board has complied with state law requiring a board to adopt a budget for that fiscal year before it sets the tax rate for the fiscal year; and

· at least 72 hours before holding the meeting to adopt a proposed budget, the board must post the proposed budget on the district's website in the same location on the website that a proposed tax rate is posted.

C.S.H.B. 2730 prohibits the board from amending the budget after its initial adoption unless the board, after notice, holds an open meeting and posts, not later than 72 hours before that meeting, the proposed amendment on the district's website in the same location on the website that a proposed tax rate to be adopted is posted. The bill prescribes the contents of the statements in the notice regarding the board's plans to consider an amendment to the adopted budget and encouraging the public's review of the posted proposed amendment, attendance at the meeting, and comments. The notice must also include the meeting's specified agenda items indicating public comment and subsequent action to adopt or reject the proposed amendment to the budget.

The bill authorizes the board, after allowing comments from the public, to amend the budget only if three or more members of the board vote in favor of adopting the amendment.

C.S.H.B. 2730 requires the board to give notice of a meeting for initial adoption of the budget and a meeting for a subsequent amendment to the adopted budget in the manner provided by state open meetings law and the bill's provisions.

EFFECTIVE DATE

September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2730 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute does not include any provisions from the introduced, which, as follows:

· provided for the commissioners court of a county with a population of more than three million to establish a schedule for emergency services districts located wholly in the county under which the district's annual budget must be prepared by its board of emergency services commissioners; and

· prohibited the board from amending the annual budget at a time not provided for in the schedule unless the amendment is approved by a majority of votes cast at an election for which notice under the Election Code has been given.

The substitute instead sets out a different process for the adoption and subsequent amendment of an adopted budget. The substitute establishes the manner by which the proposed budget must be considered and adopted at an open meeting for which applicable notice has been given to the public and before which the board must have posted the proposed budget on a location on its website used for posting a proposed tax rate for the district. The substitute also provides the manner by which the initial budget, as adopted under these provisions, may be subsequently amended at another open meeting for which an applicable notice has been given and before which the board must have posted, on that same location on its website, the proposed amendment. Furthermore, the substitute includes an authorization for the board to amend the budget, after public comment at the open meeting regarding the proposed amendment, only if three or more members of the board vote in favor of adopting the proposed amendment.