By Romo                                               H.B. No. 1383
       74R3953 DRH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a uniform method of budget preparation for counties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter C, Chapter 111, Local Government Code,
    1-5  is redesignated as Subchapter A, Chapter 111, Local Government
    1-6  Code, and is amended to read as follows:
    1-7             SUBCHAPTER A <C>.  COUNTY BUDGET <PREPARATION
    1-8         IN COUNTIES WITH POPULATION OF MORE THAN 1.2 MILLION>
    1-9        Sec. 111.001 <111.061>.  APPLICABILITY <Subchapter Applicable
   1-10  to Counties With Population of More Than 125,000>.  This subchapter
   1-11  applies <only> to each <a> county <that has a population of more
   1-12  than 125,000 and that chooses to operate under this subchapter
   1-13  instead of under Subchapter A or B>.
   1-14        Sec. 111.002 <111.062>.  <Appointment of> Budget Officer;
   1-15  Abolition of Office.  (a)  The county judge serves as the budget
   1-16  officer for the commissioners court of a county with a population
   1-17  of 125,000 or less.
   1-18        (b)  Except as provided by Subsection (c), the county auditor
   1-19  serves as the budget officer for the commissioners court of a
   1-20  county with a population of more than 125,000.
   1-21        (c)  The commissioners court of a <the> county with a
   1-22  population of more than 125,000 may appoint a person other than the
   1-23  county auditor to serve as county budget officer to prepare a
   1-24  county budget for the fiscal year.
    2-1        (d) <(b)>  A county that establishes the office of county
    2-2  budget officer under Subsection (c) may abolish that office only by
    2-3  a formal action of the commissioners court.  The court must take
    2-4  the action after the first day of the second month of the fiscal
    2-5  year and before the first day of the sixth month of the fiscal
    2-6  year.  If the office is abolished, the duties of budget officer
    2-7  shall be performed by<:>
    2-8              <(1)>  the county judge<, if the county has a
    2-9  population of 225,000 or less;> or
   2-10              <(2)  the> county auditor as provided by Subsection (a)
   2-11  or (b)<, if the county has a population of more than 225,000>.
   2-12        Sec. 111.003 <111.063>.  Itemized Budget; Contents.  (a)  The
   2-13  budget officer shall itemize the budget for the county to allow as
   2-14  clear a comparison as practicable between expenditures included in
   2-15  the proposed budget and actual or estimated expenditures for the
   2-16  same or similar purposes that were made for the preceding fiscal
   2-17  year.  The budget must show with reasonable accuracy each of the
   2-18  projects for which an appropriation is established in the budget
   2-19  and the estimated amount of money carried in the budget for each
   2-20  project.
   2-21        (b)  The budget officer shall obtain from a district, <the>
   2-22  county, or precinct officer of the county <auditor> any information
   2-23  necessary to prepare a complete financial statement for inclusion
   2-24  in the budget.  The financial statement must show:
   2-25              (1)  the outstanding obligations of the county;
   2-26              (2)  the cash on hand to the credit of each fund of the
   2-27  county government;
    3-1              (3)  funds received from all sources during the
    3-2  preceding fiscal year;
    3-3              (4)  the funds and revenue estimated by the budget
    3-4  officer <auditor> to be received from all sources during the
    3-5  preceding fiscal year;
    3-6              (5)  the funds and revenue estimated by the budget
    3-7  officer <auditor> to be received during the ensuing year; and
    3-8              (6)  a statement of all accounts and contracts on which
    3-9  sums are due to or owed by the county as of the last day of the
   3-10  preceding fiscal year, except for taxes and court costs.
   3-11        (c)  If actual amounts for the information described by
   3-12  Subsection (b)(1), (b)(2), (b)(3), or (b)(6) are not available at
   3-13  the time the budget officer prepares the financial statement, the
   3-14  budget officer may use in the preparation of the statement
   3-15  estimates of that information made by the budget officer <county
   3-16  auditor>.
   3-17        (d)  Subsection (c) does not prevent the commissioners court
   3-18  from adopting a budget before the beginning of the fiscal year for
   3-19  which the budget is prepared.
   3-20        Sec. 111.004 <111.064>.  Limitation on Expenditures Before
   3-21  Adoption of Budget.  Until a budget for a fiscal year is adopted by
   3-22  the commissioners court, the county may not make payments during
   3-23  that fiscal year except for emergencies and for obligations legally
   3-24  incurred before the first day of the fiscal year for salaries,
   3-25  utilities, materials, and supplies.
   3-26        Sec. 111.005 <111.065>.  Information Furnished by Officers.
   3-27  In preparing or monitoring the budget, the budget officer may
    4-1  require a <the county auditor or any other> district, county, or
    4-2  precinct officer of the county to provide any information necessary
    4-3  for the budget officer to properly prepare or monitor the budget.
    4-4        Sec. 111.006 <111.066>.  Proposed Budget Filed With County
    4-5  Clerk and County Auditor; Public Inspection.  (a)  The budget
    4-6  officer shall file a copy of the proposed budget with the county
    4-7  clerk and, if the county has a county auditor, with the county
    4-8  auditor.
    4-9        (b)  The copy of the proposed budget shall be available for
   4-10  public inspection.
   4-11        Sec. 111.007 <111.067>.  Public Hearing on Proposed Budget.
   4-12  (a)  The commissioners court shall hold a public hearing on the
   4-13  proposed budget.  Any taxpayer of the county may attend and may
   4-14  participate in the hearing.
   4-15        (b)  The commissioners court shall hold the hearing on a day
   4-16  within seven calendar days after the date the proposed budget is
   4-17  filed but before the last day of the first month of the fiscal
   4-18  year.
   4-19        (c)  The commissioners court shall publish notice that it
   4-20  will consider the proposed budget on the date of the budget
   4-21  hearing.  The notice must be published once in a newspaper of
   4-22  general circulation in the county and must state the date, time,
   4-23  and location of the hearing.
   4-24        Sec. 111.008 <111.0675>.  Commissioners Court:  Special
   4-25  Notice by Publication for Budget Hearing.  (a)  A commissioners
   4-26  court shall publish notice before a public hearing relating to a
   4-27  budget in at least one newspaper of general circulation in the
    5-1  county.
    5-2        (b)  Notice published under this section is in addition to
    5-3  notice required by other law.  Notice under this section shall be
    5-4  published not earlier than the 30th or later than the 10th day
    5-5  before the date of the hearing.
    5-6        (c)  This section does not apply to a commissioners court
    5-7  required by other law to give notice by publication of a hearing on
    5-8  a budget.
    5-9        Sec. 111.009 <111.068>.  Adoption of Budget.  (a)  At the
   5-10  conclusion of the public hearing, the commissioners court shall
   5-11  take action on the proposed budget.
   5-12        (b)  The commissioners court may make any changes in the
   5-13  proposed budget that it considers warranted by the facts and law
   5-14  and required by the interest of the taxpayers, but the amounts
   5-15  budgeted in a fiscal year for expenditures from the various funds
   5-16  of the county may not exceed the balances in those funds as of the
   5-17  first day of the fiscal year, plus the anticipated revenue for the
   5-18  fiscal year as estimated by the budget officer <county auditor>.
   5-19        Sec. 111.010 <111.069>.  Approved Budget Filed With Officers.
   5-20  On final approval of the budget by the commissioners court, the
   5-21  court shall file a copy of the budget with the <county auditor and
   5-22  the> county clerk and, if the county has a county auditor, with the
   5-23  county auditor.
   5-24        Sec. 111.011 <111.070>.  Expenditure of Funds Under Budget;
   5-25  Emergency Expenditures; Transfer of Budget Item or Surplus.
   5-26  (a)  The commissioners court may spend county funds only in strict
   5-27  compliance with the budget, except in an emergency.
    6-1        (b)  The commissioners court may authorize an emergency
    6-2  expenditure as an amendment to the original budget only in a case
    6-3  of grave public necessity to meet an unusual and unforeseen
    6-4  condition that could not have been included in the original budget
    6-5  through the use of reasonably diligent thought and attention.  If
    6-6  the court amends the original budget to meet an emergency, the
    6-7  court shall file a copy of its order amending the budget in the
    6-8  same manner as the original budget was filed under Section 111.010,
    6-9  and the clerk shall attach the copy to the original budget.
   6-10        (c)  On proper application, the commissioners court may
   6-11  transfer an existing budget surplus during the fiscal year to a
   6-12  budget of a similar kind and fund.  However, the transfer may not
   6-13  increase the total of the budget.
   6-14        (d)  The commissioners court by order may amend the budget to
   6-15  transfer an amount budgeted for one item to another budgeted item
   6-16  without authorizing an emergency expenditure.
   6-17        Sec. 111.012 <111.071>.  Budget Officer's Assistance to
   6-18  Commissioners Court.  The budget officer may assist the
   6-19  commissioners court in the performance of the court's duties
   6-20  relating to the efficiency and effectiveness of county operations.
   6-21        <Sec. 111.072.  ><Duties Retained by County Auditor><.  The
   6-22  duties given under Subchapter B to the county auditor that are not
   6-23  expressly conferred by this subchapter on the budget officer remain
   6-24  duties of the county auditor.>
   6-25        Sec. 111.013 <111.073>.  Employment of Personnel.  The
   6-26  commissioners court may employ personnel necessary to assist the
   6-27  budget officer in the performance of the duties of that office.
    7-1        Sec. 111.014 <111.074>.  Limitation on Budget of County
    7-2  Auditor.  If the county has a county auditor, an <An> increase from
    7-3  one fiscal year to the next in the amount budgeted for expenses of
    7-4  the county auditor's office or the salary of an assistant auditor
    7-5  shall not exceed five (5) percent without approval of the
    7-6  commissioners court.
    7-7        SECTION 2.  Subchapter D, Chapter 111, Local Government Code,
    7-8  is redesignated as Subchapter B, Chapter 111, Local Government
    7-9  Code, and the subchapter heading to Subchapter D is amended to read
   7-10  as follows:
   7-11               SUBCHAPTER B <D>.  BUDGET APPROPRIATIONS
   7-12        SECTION 3.  Section 320.047(d), Local Government Code, is
   7-13  amended to read as follows:
   7-14        (d)  The budget officer of the county <In counties subject to
   7-15  Subchapter B, Chapter 111, the county auditor> shall include the
   7-16  proposed budget as part of the county budget prepared and submitted
   7-17  to the commissioners court.
   7-18        SECTION 4.  Subchapters A and B, Chapter 111, Local
   7-19  Government Code, are repealed.
   7-20        SECTION 5.  The change in budget procedures for a county made
   7-21  by this Act applies only to a county fiscal year that begins on or
   7-22  after the effective date of this Act.  The budget procedures for a
   7-23  fiscal year of a county that begins before the effective date of
   7-24  this Act are governed by the law in effect at the time the fiscal
   7-25  year began, and the former law is continued in effect for that
   7-26  purpose.
   7-27        SECTION 6.  This Act takes effect September 1, 1995.
    8-1        SECTION 7.  The importance of this legislation and the
    8-2  crowded condition of the calendars in both houses create an
    8-3  emergency and an imperative public necessity that the
    8-4  constitutional rule requiring bills to be read on three several
    8-5  days in each house be suspended, and this rule is hereby suspended.