BILL ANALYSIS

C.S.H.B. 1231

                                                                                                                                           By: Castro

County Affairs

                                                                                                        Committee Report (Substituted)

BACKGROUND AND PURPOSE

Under the Local Government Code, the commissioners court of a county with a population of 3.3 million or more may set aside from the general fund an amount approved by the county auditor to establish a petty cash fund for any county or district official or department head.  The petty cash fund must be established under a system provided and installed by the county auditor and the county purchasing agent with reports to be made to the auditor and the purchasing agent as the auditor and/or purchasing agent require.

C.S.H.B. 1231 aims to allow all counties the option of setting up a petty cash fund in order to save money on costs associated with reimbursements.  The system would be similar to the one now available to counties with a population of 3.3 million or more.  The counties would have the option of adopting the petty cash fund system or not.

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. 

ANALYSIS

SECTION 1.   Amends the heading to Section 130.909, Local Government Code, to read "Petty Cash Funds For Certain Officials."

SECTION 2.   Amends Section 130.909 (a), Local Government Code, to allow all counties to establish petty cash funds by removing the population bracket.  The amount set aside from the general fund must be approved by the county auditor or the county treasurer if there is no county auditor.  The fund must be established under a system provided and installed by the county auditor or treasurer and the county purchasing agent or county officer who performs the duties of a county purchasing agent.  Reports relating to the fund must be made to the auditor or treasurer and the purchasing agent or other officer performing the duties of purchasing agent as those officers require.

SECTION 3.   Effective Date

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2005.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original by removing all population brackets, and making all counties subject to the same conditions of the petty cash fund regardless of population size.