BILL ANALYSIS

H.B. 2437

By: Rosenthal

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that current statute does not provide for adequate transparency regarding budget preparations and budget amendments for certain emergency services districts. The bill author has further informed the committee that the current lack of public input in the budgetary process for these entities may result in spending that does not properly fund a district's rapid growth or address other needs in the district. H.B. 2437 seeks to provide transparency in the adoption of the annual budget for an emergency services district in a county with a population of more than three million by requiring the board of emergency services commissioners of such a district to hold an open meeting to consider a proposed budget before voting on the adoption of the budget and to hold another open meeting to consider any proposed amendment to that budget after its initial adoption.

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. 2437 amends the Health and Safety Code to establish provisions relating to the adoption and amendment of an annual budget by an emergency services district located wholly in a county with a population of more than three million. The bill requires the board of emergency services commissioners for such a district to prepare and adopt the district's annual budget in the manner provided by the bill, requires the board, after notice, to hold an open meeting to consider the proposed budget for the following fiscal year, and authorizes the adoption of the budget to occur at the same meeting at which the board takes final action to set the tax rate if the board has complied with state law requiring a board to adopt a budget for a fiscal year before setting the tax rate for that fiscal year. The bill requires the board, at least 72 hours before holding the meeting to adopt a proposed budget, to post the proposed budget on the district's website in the same location on the website that a proposed tax rate to be adopted is posted.

H.B. 2437 prohibits the board from amending the budget after its initial adoption unless the board, after notice, holds an open meeting and posts, not later than 72 hours before that meeting, the proposed amendment on the district's website in the same location on the website that a proposed tax rate to be adopted is posted. The bill prescribes the contents of the statements required to be included in the notice regarding the board's plans to consider an amendment to the adopted budget and encouraging the public's review of the posted proposed amendment, attendance at the meeting, and comments. The notice must also include the meeting's specified agenda items indicating public comment and subsequent action to adopt or reject the proposed amendment to the budget. The bill authorizes the board, after allowing comments from the public regarding the amendment, to amend the budget only if three or more members of the board vote in favor of adopting the amendment.

H.B. 2437 requires the board to give notice of a meeting for initial adoption of the budget and a meeting for a subsequent amendment to the adopted budget in the manner provided by state open meetings law and the bill's provisions.

EFFECTIVE DATE

September 1, 2025.