AN ACT

 1-1     relating to the preparation of a county budget in certain counties.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 111.005, Local Government Code, is

 1-4     amended to read as follows:

 1-5           Sec. 111.005.  INFORMATION FURNISHED BY COUNTY OFFICERS.

 1-6     (a)  In preparing the budget, the county judge may require any

 1-7     county officer to furnish existing information necessary for the

 1-8     judge to properly prepare the budget.

 1-9           (b)  If a county officer fails to provide the information as

1-10     required by the county judge, the county judge may request the

1-11     commissioners court to issue an order:

1-12                 (1)  directing the county officer to produce the

1-13     required information; and

1-14                 (2)  prescribing the form in which the county officer

1-15     must produce the information.

1-16           SECTION 2.  Subchapter A, Chapter 111, Local Government Code,

1-17     is amended by adding Sections 111.0105, 111.0106, and 111.0107 to

1-18     read as follows:

1-19           Sec. 111.0105.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF

1-20     BONDS OR OTHER OBLIGATIONS.  If a county bond issue is submitted at

1-21     an election or other authorized obligations are to be issued

1-22     against future revenues and a tax is to be levied for those

1-23     obligations, the commissioners court shall adopt a budget of

 2-1     proposed expenditures.  On receipt of the proceeds of the sale of

 2-2     the bonds or other obligations, the county may make expenditures

 2-3     from the proceeds in the manner provided by this subchapter for

 2-4     expenditures for general purposes.

 2-5           Sec. 111.0106.  SPECIAL BUDGET FOR GRANT OR AID MONEY.  The

 2-6     county auditor or the county judge in a county that does not have a

 2-7     county auditor shall certify to the commissioners court the receipt

 2-8     of all public or private grant or aid money that is available for

 2-9     disbursement in a fiscal year but not included in the budget for

2-10     that fiscal year.  On certification, the court shall adopt a

2-11     special budget for the limited purpose of spending the grant or aid

2-12     money for its intended purpose.

2-13           Sec. 111.0107.  SPECIAL BUDGET FOR REVENUE FROM

2-14     INTERGOVERNMENTAL CONTRACTS.  The county auditor or the county

2-15     judge in a county that does not have a county auditor shall certify

2-16     to the commissioners court the receipt of all revenue from

2-17     intergovernmental contracts that is available for disbursement in a

2-18     fiscal year but not included in the budget for that fiscal year.

2-19     On certification, the court shall adopt a special budget for the

2-20     limited purpose of spending the revenue from intergovernmental

2-21     contracts for its intended purpose.

2-22           SECTION 3.  Section 111.041, Local Government Code, is

2-23     amended to read as follows:

2-24           Sec. 111.041.  EXPENDITURE OF FUNDS UNDER BUDGET; EMERGENCY

2-25     EXPENDITURE; BUDGET TRANSFER [OF BUDGET SURPLUS].  (a)  The

 3-1     commissioners court may spend county funds only in strict

 3-2     compliance with the budget, except as provided by this section.

 3-3           (b)  The commissioners court may authorize an emergency

 3-4     expenditure as an amendment to the original budget only in a case

 3-5     of grave public necessity to meet an unusual and unforeseen

 3-6     condition that could not have been included in the original budget

 3-7     through the use of reasonably diligent thought and attention.  If

 3-8     the court amends the original budget to meet an emergency, the

 3-9     court shall file a copy of its order amending the budget with the

3-10     county clerk, and the clerk shall attach the copy to the original

3-11     budget.

3-12           (c)  The commissioners court by order may amend the budget to

3-13     transfer an amount budgeted for one item to another budgeted item

3-14     without authorizing an emergency expenditure.  [On proper

3-15     application, the commissioners court may transfer an existing

3-16     budget surplus during the fiscal year to a budget of a similar kind

3-17     and fund.  However, the transfer may not increase the total of the

3-18     budget.]

3-19           SECTION 4.  Subchapter B, Chapter 111, Local Government Code,

3-20     is amended by adding Section 111.0415 to read as follows:

3-21           Sec. 111.0415.  CHANGES IN BUDGET FOR COUNTY PURPOSES.  This

3-22     subchapter does not prevent the commissioners court from making

3-23     changes in the budget for county purposes.

3-24           SECTION 5.  Section 111.042, Local Government Code, is

3-25     amended to read as follows:

 4-1           Sec. 111.042.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF BONDS

 4-2     OR OTHER OBLIGATIONS [ANTICIPATION WARRANTS].  If a county bond

 4-3     issue is submitted at an election or other authorized obligations

 4-4     [if anticipation warrants] are to be issued against future revenues

 4-5     and a tax is to be levied for those obligations [warrants], the

 4-6     commissioners court shall adopt a budget of proposed expenditures.

 4-7     On receipt of the proceeds of the sale of the bonds or other

 4-8     obligations [warrants], the county may make expenditures from the

 4-9     proceeds in the manner provided by this subchapter for expenditures

4-10     for general purposes.

4-11           SECTION 6.  Subchapter B, Chapter 111, Local Government Code,

4-12     is amended by adding Section 111.0431 to read as follows:

4-13           Sec. 111.0431.  SPECIAL BUDGET FOR REVENUE FROM

4-14     INTERGOVERNMENTAL CONTRACTS.  The county auditor shall certify to

4-15     the commissioners court the receipt of all revenue from

4-16     intergovernmental contracts that is available for disbursement in a

4-17     fiscal year but not included in the budget for that fiscal year.

4-18     On certification, the court shall adopt a special budget for the

4-19     limited purpose of spending the revenue from intergovernmental

4-20     contracts for its intended purpose.

4-21           SECTION 7.  Section 111.070, Local Government Code, is

4-22     amended to read as follows:

4-23           Sec. 111.070.  EXPENDITURE OF FUNDS UNDER BUDGET; EMERGENCY

4-24     EXPENDITURE; BUDGET TRANSFER [OF BUDGET SURPLUS].  (a)  The

4-25     commissioners court may spend county funds only in strict

 5-1     compliance with the budget, except as provided by this section.

 5-2           (b)  The commissioners court may authorize an emergency

 5-3     expenditure as an amendment to the original budget only in a case

 5-4     of grave public necessity to meet an unusual and unforeseen

 5-5     condition that could not have been included in the original budget

 5-6     through the use of reasonably diligent thought and attention.  If

 5-7     the court amends the original budget to meet an emergency, the

 5-8     court shall file a copy of its order amending the budget with the

 5-9     county clerk and the clerk shall attach the copy to the original

5-10     budget.

5-11           (c)  The commissioners court by order may amend the budget to

5-12     transfer an amount budgeted for one item to another budgeted item

5-13     without authorizing an emergency expenditure.  [On proper

5-14     application, the commissioners court may transfer an existing

5-15     budget surplus during the fiscal year to a budget of a similar kind

5-16     and fund.  However, the transfer may not increase the total of the

5-17     budget.]

5-18           SECTION 8.  Subchapter C, Chapter 111, Local Government Code,

5-19     is amended by adding Sections 111.0705, 111.0706, 111.0707,

5-20     111.0708, and 111.0709 to read as follows:

5-21           Sec. 111.0705.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF

5-22     BONDS OR OTHER OBLIGATIONS.  If a county bond issue is submitted at

5-23     an election or other authorized obligations are to be issued

5-24     against future revenues and a tax is to be levied for those

5-25     obligations, the commissioners court shall adopt a budget of

 6-1     proposed expenditures.  On receipt of the proceeds of the sale of

 6-2     the bonds or other obligations, the county may make expenditures

 6-3     from the proceeds in the manner provided by this subchapter for

 6-4     expenditures for general purposes.

 6-5           Sec. 111.0706.  SPECIAL BUDGET FOR GRANT OR AID MONEY.  The

 6-6     county auditor shall certify to the commissioners court the receipt

 6-7     of all public or private grant or aid money that is available for

 6-8     disbursement in a fiscal year but not included in the budget for

 6-9     that fiscal year.  On certification, the court shall adopt a

6-10     special budget for the limited purpose of spending the grant or aid

6-11     money for its intended purpose.

6-12           Sec. 111.0707.  SPECIAL BUDGET FOR REVENUE FROM

6-13     INTERGOVERNMENTAL CONTRACTS.  The county auditor shall certify to

6-14     the commissioners court the receipt of all revenue from

6-15     intergovernmental contracts that is available for disbursement in a

6-16     fiscal year but not included in the budget for that fiscal year.

6-17     On certification, the court shall adopt a special budget for the

6-18     limited purpose of spending the revenue from intergovernmental

6-19     contracts for its intended purpose.

6-20           Sec. 111.0708.  PLEDGING REVENUE AS SECURITY FOR BONDS AND

6-21     OTHER OBLIGATIONS.  In preparing a county budget, a county may

6-22     secure county bonds or other obligations by pledging for the term

6-23     of the bonds or other obligations:

6-24                 (1)  any security authorized by law; or

6-25                 (2)  any revenue or receipts obtained by the county

 7-1     from the levy of a state tax if the state is required to pay the

 7-2     county the proceeds or receipts from the tax.

 7-3           Sec. 111.0709.  CHANGES IN BUDGET FOR COUNTY PURPOSES.  This

 7-4     subchapter does not prevent the commissioners court from making

 7-5     changes in the budget for county purposes.

 7-6           SECTION 9.  Subchapter D, Chapter 111, Local Government Code,

 7-7     is amended by adding Section 111.094 to read as follows:

 7-8           Sec. 111.094.  ITEMIZED BUDGET.  The commissioners court in

 7-9     preparing the county budget shall determine the amount of county

7-10     funds to be spent for the juvenile probation department in the

7-11     county budget.

7-12           SECTION 10.  Subsection (c), Section 113.901, Local

7-13     Government Code, is amended to read as follows:

7-14           (c)  The commissioners court [county judge] of a county that

7-15     has the office of county auditor may, by a written order, waive the

7-16     requirement of the county judge's approval of requisitions.  The

7-17     order must be recorded in the minutes of the commissioners court.

7-18     If the approval of the county judge is waived, all claims must be

7-19     approved by the commissioners court in open court.

7-20           SECTION 11.  The importance of this legislation and the

7-21     crowded condition of the calendars in both houses create an

7-22     emergency and an imperative public necessity that the

7-23     constitutional rule requiring bills to be read on three several

7-24     days in each house be suspended, and this rule is hereby suspended,

7-25     and that this Act take effect and be in force from and after its

                                                               S.B. No. 1395

 8-1     passage, and it is so enacted.

         ________________________________   ________________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1395 passed the Senate on

         April 17, 1997, by the following vote:  Yeas 31, Nays 0;

         May 30, 1997, Senate refused to concur in House amendments and

         requested appointment of Conference Committee; May 31, 1997, House

         granted request of the Senate; June 1, 1997, Senate adopted

         Conference Committee Report by the following vote:  Yeas 23,

         Nays 8.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1395 passed the House, with

         amendments, on May 28, 1997, by the following vote:  Yeas 136,

         Nays 1, one present not voting; May 31, 1997, House granted request

         of the Senate for appointment of Conference Committee;

         June 1, 1997, House adopted Conference Committee Report by the

         following vote:  Yeas 139, Nays 3, one present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         ________________________________

                      Date

         ________________________________

                    Governor