BILL ANALYSIS



C.S.H.B. 1304
By: Torres
March 20, 1995
Committee Report (Substituted)


BACKGROUND

All counties in Texas are currently authorized to establish petty
cash funds in their sheriffs' departments, and counties with
populations over 800,000 are also allowed to set up petty cash
funds for certain social services.  These are the only situations,
however, where a commissioners court is allowed to authorize
creation of a petty cash fund.

The lack of general authority in this area is a problem in Harris
County, where administrative costs associated with producing and
distributing a check currently run around twenty dollars.  While
this is not a problem with medium-size or large disbursements, it
creates an obvious problem when the face value of the check is less
than $20 (in that situation, the cost of processing the check
exceeds the value of the transaction).  

For reasons of efficiency and economy, the Harris County
commissioners court should be allowed to identify county
departments where petty cash funds can be established for small
purchases.


PURPOSE

This bill allows the Harris County commissioners court to authorize
the establishment of a petty cash fund for any county or district
official.

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.

SECTION BY SECTION ANALYSIS

SECTION 1.  Adds Section 130.909 to the Local Government Code to
give commissioners courts in counties with population of more than
2,000,000 the right to establish a petty cash fund for any county
or district official.  The petty cash fund must conform to a system
installed by the county auditor and county purchasing agent.  The
petty cash fund cannot be used to make loans or cash advances. The
bond of that county or district official who receives the petty
cash fund  must cover the official's  responsibility. The
commissioners court may increase or decrease the amount in the
petty cash fund at any time on the recommendation of the county
auditor.

SECTION 2.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute adds the words "or department head approved by the county
commissioners court." on page 1, lines 12 and 13.
The committee substitute also adds the words "or department head" on page 1, lines 17 and 18.

SUMMARY OF COMMITTEE ACTION

HB 1304 was considered by the Committee on County Affairs in a public hearing on 3/15/95.
Representative Torres opened. Tommy Tompkins, representing himself, testified for HB 1304.
Representative Torres closed. The Committee on County Affairs considered a complete committee
substitute for HB 1304. The substitute was adopted without objection. HB 1304 was reported
favorably, as substituted, with the recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars by the record vote of 8 ayes, 0 nays, 0 pnv, 1 absent.