BILL ANALYSIS

H.B. 1930

By: Frullo

Government Transparency & Operation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties contend that it is important that governmental entities comply with generally accepted accounting principles when performing financial accounting and reporting duties due to the clarity, consistency, and widespread usage of such accounting principles. H.B. 1930 seeks to address this issue by prohibiting certain county auditor regulations from being inconsistent with such principles and repealing provisions that establish certain alternative accounting principles with regard to postemployment benefits.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 1930 repeals Government Code provisions relating to financial accounting and reporting standards for the state and political subdivisions of the state, including provisions relating to accounting and reporting with regard to certain postemployment benefits.

H.B. 1930 amends the Local Government Code to prohibit a regulation adopted by the auditor of a county with a population of 190,000 or more in relation to the county's accounting system from being inconsistent with generally accepted accounting principles as established by the Governmental Accounting Standards Board.

H.B. 1930 applies to financial accounting and reporting by a governmental entity that, immediately before the bill's effective date, was subject to the repealed Government Code provisions beginning with the governmental entity's first fiscal year that begins on or after September 1, 2018.

H.B. 1930 repeals Chapter 2266, Government Code.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2017.