75R14921 PAM-D                          

         By Lindsay                                            S.B. No. 1395

         Substitute the following for S.B. No. 1395:

         By Lewis of Tarrant                               C.S.S.B. No. 1395

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the preparation of a county budget in certain counties.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 111.005, Local Government Code, is

 1-5     amended to read as follows:

 1-6           Sec. 111.005.  INFORMATION FURNISHED BY COUNTY OFFICERS.

 1-7     (a)  In preparing the budget, the county judge may require any

 1-8     county officer to furnish existing information necessary for the

 1-9     judge to properly prepare the budget.

1-10           (b)  If a county officer fails to provide the information as

1-11     required by the county judge, the county judge may request the

1-12     commissioners court to issue an order:

1-13                 (1)  directing the county officer to produce the

1-14     required information; and

1-15                 (2)  prescribing the form in which the county officer

1-16     must produce the information.

1-17           SECTION 2.  Subchapter A, Chapter 111, Local Government Code,

1-18     is amended by adding Sections 111.0105, 111.0106, and 111.0107 to

1-19     read as follows:

1-20           Sec. 111.0105.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF

1-21     BONDS OR OTHER OBLIGATIONS.  If a county bond issue is submitted at

1-22     an election or other authorized obligations are to be issued

1-23     against future revenues and a tax is to be levied for those

1-24     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

2-26     commissioners court may spend county funds only in strict

2-27     compliance with the budget except as provided by this section.

 3-1           (b)  The commissioners court may authorize an emergency

 3-2     expenditure as an amendment to the original budget only in a case

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

 3-4     condition that could not have been included in the original budget

 3-5     through the use of reasonably diligent thought and attention.  If

 3-6     the court amends the original budget to meet an emergency, the

 3-7     court shall file a copy of its order amending the budget with the

 3-8     county clerk, and the clerk shall attach the copy to the original

 3-9     budget.

3-10           (c)  The commissioners court by order may amend the budget to

3-11     transfer an amount budgeted for one item to another budgeted item

3-12     without authorizing an emergency expenditure.  [On proper

3-13     application, the commissioners court may transfer an existing

3-14     budget surplus during the fiscal year to a budget of a similar kind

3-15     and fund.  However, the transfer may not increase the total of the

3-16     budget.]

3-17           SECTION 4.  Subchapter B, Chapter 111, Local Government Code,

3-18     is amended by adding Section 111.0415 to read as follows:

3-19           Sec. 111.0415.  CHANGES IN BUDGET FOR COUNTY PURPOSES.  This

3-20     subchapter does not prevent the commissioners court from making

3-21     changes in the budget for county purposes.

3-22           SECTION 5.  Section 111.042, Local Government Code, is

3-23     amended to read as follows:

3-24           Sec. 111.042.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF BONDS

3-25     OR OTHER OBLIGATIONS [ANTICIPATION WARRANTS]. If a county bond

3-26     issue is submitted at an election or other authorized obligations

3-27     [if anticipation warrants] are to be issued against future revenues

 4-1     and a tax is to be levied for those obligations [warrants], the

 4-2     commissioners court shall adopt a budget of proposed expenditures.

 4-3     On receipt of the proceeds of the sale of the bonds or other

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

 4-5     proceeds in the manner provided by this subchapter for expenditures

 4-6     for general purposes.

 4-7           SECTION 6.  Subchapter B, Chapter 111, Local Government Code,

 4-8     is amended by adding Section 111.0431 to read as follows:

 4-9           Sec. 111.0431.  SPECIAL BUDGET FOR REVENUE FROM

4-10     INTERGOVERNMENTAL CONTRACTS.  The county auditor shall certify to

4-11     the commissioners court the receipt of all revenue from

4-12     intergovernmental contracts that is available for disbursement in a

4-13     fiscal year but not included in the budget for that fiscal year.

4-14     On certification, the court shall adopt a special budget for the

4-15     limited purpose of spending the revenue from intergovernmental

4-16     contracts for its intended purpose.

4-17           SECTION 7.  Section 111.070, Local Government Code, is

4-18     amended to read as follows:

4-19           Sec. 111.070.  EXPENDITURE OF FUNDS UNDER BUDGET; EMERGENCY

4-20     EXPENDITURE; BUDGET TRANSFER [OF BUDGET SURPLUS].  (a)  The

4-21     commissioners court may spend county funds only in strict

4-22     compliance with the budget, except as provided by this section.

4-23           (b)  The commissioners court may authorize an emergency

4-24     expenditure as an amendment to the original budget only in a case

4-25     of grave public necessity to meet an unusual and unforeseen

4-26     condition that could not have been included in the original budget

4-27     through the use of reasonably diligent thought and attention.  If

 5-1     the court amends the original budget to meet an emergency, the

 5-2     court shall file a copy of its order amending the budget with the

 5-3     county clerk and the clerk shall attach the copy to the original

 5-4     budget.

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

 5-6     transfer an amount budgeted for one item to another budgeted item

 5-7     without authorizing an emergency expenditure.  [On proper

 5-8     application, the commissioners court may transfer an existing

 5-9     budget surplus during the fiscal year to a budget of a similar kind

5-10     and fund.  However, the transfer may not increase the total of the

5-11     budget.]

5-12           SECTION 8.  Subchapter C, Chapter 111, Local Government Code,

5-13     is amended by adding Sections 111.0705, 111.0706, 111.0707,

5-14     111.0708, and 111.0709 to read as follows:

5-15           Sec. 111.0705.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF

5-16     BONDS OR OTHER OBLIGATIONS.  If a county bond issue is submitted at

5-17     an election or other authorized obligations are to be issued

5-18     against future revenues and a tax is to be levied for those

5-19     obligations, the commissioners court shall adopt a budget of

5-20     proposed expenditures.  On receipt of the proceeds of the sale of

5-21     the bonds or other obligations, the county may make expenditures

5-22     from the proceeds in the manner provided by this subchapter for

5-23     expenditures for general purposes.

5-24           Sec. 111.0706.  SPECIAL BUDGET FOR GRANT OR AID MONEY.  The

5-25     county auditor shall certify to the commissioners court the receipt

5-26     of all public or private grant or aid money that is available for

5-27     disbursement in a fiscal year but not included in the budget for

 6-1     that fiscal year.  On certification, the court shall adopt a

 6-2     special budget for the limited purpose of spending the grant or aid

 6-3     money for its intended purpose.

 6-4           Sec. 111.0707.  SPECIAL BUDGET FOR REVENUE FROM

 6-5     INTERGOVERNMENTAL CONTRACTS.  The county auditor shall certify to

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

 6-7     intergovernmental contracts that is available for disbursement in a

 6-8     fiscal year but not included in the budget for that fiscal year.

 6-9     On certification, the court shall adopt a special budget for the

6-10     limited purpose of spending the revenue from intergovernmental

6-11     contracts for its intended purpose.

6-12           Sec. 111.0708.  PLEDGING REVENUE AS SECURITY FOR BONDS AND

6-13     OTHER OBLIGATIONS.  In preparing a county budget, a county may

6-14     secure county bonds or other obligations by pledging for the term

6-15     of the bonds or other obligations:

6-16                 (1)  any security authorized by law; or

6-17                 (2)  any revenue or receipts obtained by the county

6-18     from the levy of a state tax if the state is required to pay the

6-19     county the proceeds or receipts from the tax.

6-20           Sec. 111.0709.  CHANGES IN BUDGET FOR COUNTY PURPOSES.  This

6-21     subchapter does not prevent the commissioners court from making

6-22     changes in the budget for county purposes.

6-23           SECTION 9.  The importance of this legislation and the

6-24     crowded condition of the calendars in both houses create an

6-25     emergency and an imperative public necessity that the

6-26     constitutional rule requiring bills to be read on three several

6-27     days in each house be suspended, and this rule is hereby suspended,

 7-1     and that this Act take effect and be in force from and after its

 7-2     passage, and it is so enacted.