HBA-MPA H.B. 1219 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1219
By: Keel
County Affairs
2/23/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, although many counties are required to be audited against
generally accepted accounting practices (GAAP), the state law does not
establish that accounting procedures adopted by counties should comply with
GAAP.  As a result counties can, and in some cases have, adopted accounting
procedures that conflict with these standards. 

The American Institute of Certified Public Accountants Council has
designated the Governmental Accounting Standards Board (GASB) as the
governing body for state and local governments in establishing the GAAP
(defined as the technical accounting principles, standards, methods, and
procedures necessary to describe the accepted accounting practice at a
particular time).  The accounting profession has developed the concept of
GAAP to meet the needs of government, corporations, small business,
financial institutions, investors, and the general public.  GAAP sets the
minimum requirements for a fair presentation of financial reporting among
different organizations, including government.  H.B. 1219 clarifies that
the accounting procedures adopted by counties are not to be inconsistent
with generally accepted accounting practices as established by GASB. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 112.002, Local Government Code, by adding
Subsection (c), as follows: 

(c) Prohibits regulations adopted under this section from being
inconsistent with generally accepted accounting principles as established
by the Governmental Accounting Standards Board. 

SECTION 2.  Makes application of this Act prospective, from the first day
of the fiscal year following the effective date of this Act. 

SECTION 3.Emergency clause.
  Effective date: upon passage.