BILL ANALYSIS


                                                        H.B. 1304
                                               By: Torres (Ellis)
                                      Intergovernmental Relations
                                                          4-20-95
                              Senate Committee Report (Unamended)
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
in which 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 approximately $20.  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 and the cost of processing the check exceeds the value of
the transaction.

PURPOSE

As proposed, H.B. 1304 sets forth provisions relating to the
management of petty cash in counties with a population greater than
2,000,000.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 130Z, Local Government Code, by adding
Section 130.909, as follows:

     Sec. 130.909.  PETTY CASH FUNDS IN COUNTY WITH POPULATION OF
     MORE THAN 2,000,000.  (a)  Authorizes a commissioners court of
     a county with a population of 2,000,000 or more to set aside
     from the general fund of the county an amount approved by the
     county auditor for the establishment of a petty cash fund for
     any county or district official or department head approved by
     the commissioners court.  Requires a petty cash fund to be
     established under a system provided and installed by the
     county auditor and the county purchasing agent with reports to
     be made to the auditor and the purchasing agent as the auditor
     and/or purchasing agent require.
     
     (b)  Requires a bond of the county or district official or
       department head who receives such a petty cash fund to cover
       the official's responsibility for the correct accounting and
       disposition of the petty cash fund.
       
       (c)  Prohibits a petty cash fund from being used to make
       loans or advances or to cash checks or warrants of any kind.
       
       (d)  Authorizes the commissioners court to increase or
       decrease the petty cash fund at any time on the
       recommendation of the county auditor.
SECTION 2. Emergency clause.
           Effective date: 90 days after adjournment.