BWH C.S.S.B. 1395 75(R) BILL ANALYSIS COUNTY AFFAIRS C.S.S.B. 1395 By: Lindsay (Stiles) 5-14-97 Committee Report (Substituted) BACKGROUND Currently, Chapter 111, Local Government Code, provides for the preparation and adoption of an annual budget by counties. Chapter 111 has three subchapters: A, B, C. Subchapter A applies to counties with a population of 225,000 or less. Subchapter B applies to counties with a population of more than 225,000. Subchapter C applies to counties with population greater than 125,000 who choose to operate under it and not Subchapter A or B. The principal difference between the three subchapters is who serves as budget officer for commissioners court. Under Subchapter A, the budget officer is the county judge. Under Subchapter B, the budget officer is the county auditor. Under Subchapter C, the budget officer is appointed by commissioners court. The three Subchapters provide varying degrees of flexibility in amending the budget and in spending revenues not included in the budget, such as bonds and grants. Subchapter A has provisions for amending the budget to deal with emergencies, while Subchapters B and C do not. Subchapter B has provisions for budgeting and spending proceeds of bonds or unanticipated revenues, grants and aid, though Subchapters A and C do not. Subchapter C has none of the flexibility provisions that Subchapter A and B have. There has been some uncertainty as to whether counties operating under Subchapter C have the authority to spend bond proceeds, grants or other revenue not included in the budget, or to amend the budget. PURPOSE C.S.S.B. 1395 would provide all counties the same flexibility to amend the budget and spend unanticipated revenues by copying into each subchapter in Chapter 111, Local Government Code, the relevant provisions of the other subchapters. 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. Amends Section 111.005, Local Government Code, to require county officers to furnish the county judge, who is budget officer, information necessary to prepare the budget. Clarifies information required and prescribes form for information given. SECTION 2. Amends Chapter 111A, Local Government Code, by adding Sections 111.0105 and 111.0106. Modifies existing provisions related to bonds and anticipation warrants to account for all of the various kinds of debt instruments that counties use. SECTION 3. Amends Section 111.041, Local Government Code. Provides guidelines for authorization of emergency expenditures and budget transfers. SECTION 4. Amends Chapter 111B, Local Government Code, by adding Section 111.0415. Allows changes in the county budget. SECTION 5. Amends Section 111.042, Local Government Code, to make a conforming change. SECTION 6. Amends Chapter 111B, Local Government Code, by adding Section 11.0431. Provides guidelines for certification and expenditure of revenue from intergovernmental contracts. SECTION 7. Amends Section 111.070, Local Government Code by providing guidelines for authorization of emergency expenditures and budget transfers. SECTION 8. Amends Subchapter C, Chapter 111, Local Government Code, by adding Sections 111.0705, 111.0706, 111.0707, 111.0708 and 111.0709. Modifies existing provisions related to bonds and anticipation warrants to account for all of the various kinds of debt instru- ments that counties can now use. Adds provision to allow the commissioners court, when preparing the county budget, to pledge as security on bonds or other debt instruments revenue from existing state taxes that are turned over to the county. Makes conforming changes. SECTION 9. Emergency clause. COMPARISON OF ORIGINAL BILL TO SUBSTITUTE: C.S.S.B. 1395 contains provisions which require certain county officers to furnish those county judges who are also budget officer, information necessary to prepare the budget; relate to bonds and obligations to account for all of the various kinds of debt instruments that counties use; and allow pledges of security on bonds or other debt instruments revenue from existing state taxes which are turned over to the county. S.B. 1395 does not contain these provisions.