1-1     By:  Lindsay                                          S.B. No. 1395

 1-2           (In the Senate - Filed March 13, 1997; March 19, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 4, 1997, reported favorably, as amended, by the

 1-5     following vote:  Yeas 11, Nays 0; April 4, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                              By:  Lindsay

 1-7     Amend S.B. No. 1395 as follows:

 1-8           (1)  On page 1, line 61, after the words "county auditor"

 1-9     insert ", or the county judge in a county that does not have a

1-10     county auditor,".

1-11           (2)  Insert the following 3 SECTIONS, appropriately numbered:

1-12           SECTION 2.  Subchapter A, Chapter 111, Local Government Code,

1-13     is amended by adding Section 111.0107 to read as follows:

1-14           Sec. 111.0107.  SPECIAL BUDGET FOR REVENUE FROM

1-15     INTERGOVERNMENTAL CONTRACTS.  The county auditor, or the county

1-16     judge in a county that does not have an auditor, shall certify to

1-17     the commissioners court the receipt of all revenue from

1-18     intergovernmental contracts that is available for disbursement in a

1-19     fiscal year but not included in the budget for that fiscal year.

1-20     On certification, the court shall adopt a special budget for the

1-21     limited purpose of spending the revenue from intergovernmental

1-22     contracts for its intended purpose.

1-23           SECTION 5.  Subchapter B, Chapter 111, Local Government Code,

1-24     is amended by adding Section 111.045 to read as follows:

1-25           Sec. 111.045.  SPECIAL BUDGET FOR REVENUE FROM

1-26     INTERGOVERNMENTAL CONTRACTS.  The county auditor shall certify to

1-27     the commissioners court the receipt of all revenue from

1-28     intergovernmental contracts that is available for disbursement in a

1-29     fiscal year but not included in the budget for that fiscal year.

1-30     On certification, the court shall adopt a special budget for the

1-31     limited purpose of spending the revenue from intergovernmental

1-32     contracts for its intended purpose.

1-33           SECTION 8.  Subchapter C, Chapter 111, Local Government Code,

1-34     is amended by adding Section 111.0708 to read as follows:

1-35           Sec. 111.0708.  SPECIAL BUDGET FOR REVENUE FROM

1-36     INTERGOVERNMENTAL CONTRACTS.  The county auditor shall certify to

1-37     the commissioners court the receipt of all revenue from

1-38     intergovernmental contracts that is available for disbursement in a

1-39     fiscal year but not included in the budget for that fiscal year.

1-40     On certification, the court shall adopt a special budget for the

1-41     limited purpose of spending the revenue from intergovernmental

1-42     contracts for its intended purpose.

1-43           (3)  Renumber the remaining SECTIONS accordingly.

1-44                            A BILL TO BE ENTITLED

1-45                                   AN ACT

1-46     relating to the preparation of a county budget in certain counties.

1-47           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-48           SECTION 1.  Subchapter A, Chapter 111, Local Government Code,

1-49     is amended by adding Sections 111.0105 and 111.0106 to read as

1-50     follows:

1-51           Sec. 111.0105.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF

1-52     BONDS OR ANTICIPATION WARRANTS.  If a county bond issue is

1-53     submitted at an election or if anticipation warrants are to be

1-54     issued against future revenues and a tax is to be levied for those

1-55     warrants, the commissioners court shall adopt a budget of proposed

1-56     expenditures.  On receipt of the proceeds of the sale of the bonds

1-57     or warrants, the county may make expenditures from the proceeds in

1-58     the manner provided by this subchapter for expenditures for general

1-59     purposes.

1-60           Sec. 111.0106.  SPECIAL BUDGET FOR GRANT OR AID MONEY.  The

1-61     county auditor shall certify to the commissioners court the receipt

1-62     of all public or private grant or aid money that is available for

1-63     disbursement in a fiscal year but not included in the budget for

1-64     that fiscal year.  On certification, the court shall adopt a

 2-1     special budget for the limited purpose of spending the grant or aid

 2-2     money for its intended purpose.

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

 2-4     amended to read as follows:

 2-5           Sec. 111.041.  EXPENDITURE OF FUNDS UNDER BUDGET; EMERGENCY

 2-6     EXPENDITURE; BUDGET TRANSFER [OF BUDGET SURPLUS].  (a)  The

 2-7     commissioners court may spend county funds only in strict

 2-8     compliance with the budget except as provided by this section.

 2-9           (b)  The commissioners court may authorize an emergency

2-10     expenditure as an amendment to the original budget only in a case

2-11     of grave public necessity to meet an unusual and unforeseen

2-12     condition that could not have been included in the original budget

2-13     through the use of reasonably diligent thought and attention.  If

2-14     the court amends the original budget to meet an emergency, the

2-15     court shall file a copy of its order amending the budget with the

2-16     county clerk, and the clerk shall attach the copy to the original

2-17     budget.

2-18           (c)  The commissioners court by order may amend the budget to

2-19     transfer an amount budgeted for one item to another budgeted item

2-20     without authorizing an emergency expenditure.  [On proper

2-21     application, the commissioners court may transfer an existing

2-22     budget surplus during the fiscal year to a budget of a similar kind

2-23     and fund.  However, the transfer may not increase the total of the

2-24     budget.]

2-25           SECTION 3.  Subchapter B, Chapter 111, Local Government Code,

2-26     is amended by adding Section 111.0415 to read as follows:

2-27           Sec. 111.0415.  CHANGES IN BUDGET FOR COUNTY PURPOSES.  This

2-28     subchapter does not prevent the commissioners court from making

2-29     changes in the budget for county purposes.

2-30           SECTION 4.  Section 111.070, Local Government Code, is

2-31     amended to read as follows:

2-32           Sec. 111.070.  EXPENDITURE OF FUNDS UNDER BUDGET; EMERGENCY

2-33     EXPENDITURE; BUDGET TRANSFER [OF BUDGET SURPLUS].  (a)  The

2-34     commissioners court may spend county funds only in strict

2-35     compliance with the budget, except as provided by this section.

2-36           (b)  The commissioners court may authorize an emergency

2-37     expenditure as an amendment to the original budget only in a case

2-38     of grave public necessity to meet an unusual and unforeseen

2-39     condition that could not have been included in the original budget

2-40     through the use of reasonably diligent thought and attention.  If

2-41     the court amends the original budget to meet an emergency, the

2-42     court shall file a copy of its order amending the budget with the

2-43     county clerk, and the clerk shall attach the copy to the original

2-44     budget.

2-45           (c)  The commissioners court by order may amend the budget to

2-46     transfer an amount budgeted for one item to another budgeted item

2-47     without authorizing an emergency expenditure.  [On proper

2-48     application, the commissioners court may transfer an existing

2-49     budget surplus during the fiscal year to a budget of a similar kind

2-50     and fund.  However, the transfer may not increase the total of the

2-51     budget.]

2-52           SECTION 5.  Subchapter C, Chapter 111, Local Government Code,

2-53     is amended by adding Sections 111.0705, 111.0706, and 111.0707 to

2-54     read as follows:

2-55           Sec. 111.0705.  BUDGET FOR EXPENDITURES FROM PROCEEDS OF

2-56     BONDS OR ANTICIPATION WARRANTS.  If a county bond issue is

2-57     submitted at an election or if anticipation warrants are to be

2-58     issued against future revenues and a tax is to be levied for those

2-59     warrants, the commissioners court shall adopt a budget of proposed

2-60     expenditures.  On receipt of the proceeds of the sale of the bonds

2-61     or warrants, the county may make expenditures from the proceeds in

2-62     the manner provided by this subchapter for expenditures for general

2-63     purposes.

2-64           Sec. 111.0706.  SPECIAL BUDGET FOR GRANT OR AID MONEY.  The

2-65     county auditor shall certify to the commissioners court the receipt

2-66     of all public or private grant or aid money that is available for

2-67     disbursement in a fiscal year but not included in the budget for

2-68     that fiscal year.  On certification, the court shall adopt a

2-69     special budget for the limited purpose of spending the grant or aid

 3-1     money for its intended purpose.

 3-2           Sec. 111.0707.  CHANGES IN BUDGET FOR COUNTY PURPOSES.  This

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

 3-4     changes in the budget for county purposes.

 3-5           SECTION 6.  The importance of this legislation and the

 3-6     crowded condition of the calendars in both houses create an

 3-7     emergency and an imperative public necessity that the

 3-8     constitutional rule requiring bills to be read on three several

 3-9     days in each house be suspended, and this rule is hereby suspended,

3-10     and that this Act take effect and be in force from and after its

3-11     passage, and it is so enacted.

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