HBA-DMH C.S.H.B. 2869 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2869
By: Ramsay
County Affairs
3/27/2001
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

During the interim, the House Committee on County Affairs (county affairs)
discussed the cost of county statutory duties and the ability of the county
tax bases and fees to support such duties.  County affairs found that the
lack of a central database and the lack of consistency in the manner in
which counties collect and store financial data makes it difficult to
evaluate these issues.  Sixty-three of the 254 counties in Texas elected to
participate in the study by responding to surveys.  The information county
affairs determined that some counties were able to raise the funds
necessary to meet statutory duties, while others were running out of
funding resources.  C.S.H.B. 2869 establishes the Texas County Financial
Data Advisory Committee and provides for a voluntary uniform chart of
account for counties. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 2869 amends the Local Government Code to create the Texas County
Financial Data Advisory Committee (committee) to study county financial
reporting requirements and systems and make recommendations to the
legislature and the comptroller of public accounts (comptroller) on ways in
which the collection and use of county financial data can be improved
without resulting in additional costs to counties.  The bill requires the
recommendations to address issues relating to county financial reporting
requirements such as: 

_uniformity; 

_duplicative reporting requirements; 

_the Government Accounting Standards Board's most recent reporting
standards; 

_electronic filing; and

_costs associated with meeting the requirements.

The bill requires the committee to develop and recommend a consolidated
uniform financial reporting procedure that does not impose a greater
reporting burden on counties than current practices and a voluntary uniform
chart of accounts for counties.  The bill authorizes the comptroller to
implement the recommendations of the committee for the reporting of
financial data and other pertinent information to the state. As soon as
practicable, but not later than September 1, 2002, the bill requires the
comptroller to adopt the uniform chart of accounts.  The bill authorizes a
county to use the uniform chart of accounts developed by the committee and
implemented by the comptroller in reporting financial data or other
pertinent information to the state.  The bill deletes the provision that
the comptroller is required to prescribe forms that the comptroller
considers will meet the needs of different counties.  
 
The bill provides for the appointment, administration, and composition of
the committee, sets forth terms relating to its members, and provides for
the election of a presiding officer.  The bill requires the comptroller,
the Texas Association of Counties, and the Texas Conference of Urban
Counties to provide by agreement for the staff and other resources
necessary for the operations of the committee.  

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2869 differs from the original bill by authorizing a county to use
the uniform chart of accounts. The substitute provides that the Texas
County Financial Data Advisory Committee (committee) make certain
recommendations to the comptroller of public accounts (comptroller), in
addition to the legislature, and authorizes the comptroller to implement
the committee recommendations.  The substitute also modifies the original
to require the comptroller to adopt the uniform chart of accounts not later
than September 1, 2002.