BILL ANALYSIS

H.B. 3002

By: Hughes

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Certain water districts with gross receipts under a certain threshold amount during a fiscal period are allowed to file an annual financial review instead of a full audit.  Observers note that the cost of a full audit to a district is substantially more than an annual financial review and also note that the gross receipts threshold has not recently been adjusted.  The interested parties seek to raise the gross receipts threshold in order to allow additional districts to comply with a financial review instead of the more expensive audit.  H.B. 3002 would address that issue by changing provisions exempting certain water districts from filing a full audit with the executive director of the Texas Commission on Environmental Quality.

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

H.B. 3002 amends the Water Code, in a provision authorizing a water district to elect to file annual financial reports with the executive director of the Texas Commission on Environmental Quality instead of the district's compliance with provisions relating to a duty to audit provided that as one of several conditions the district did not have gross receipts from operations, loans, taxes, or contributions in excess of a certain amount during the fiscal period, to increase such amount from $100,000 to $250,000.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.