HB 271/a PUBLIC FINANCE ACCOUNTABILITY ACT

Rep Linda Serrato

Actions: [4] HCEDC/HAFC-HCEDC [6] DP-HAFC [10] DP/a [13] PASSED/H (63-0) [9] SHPAC-SHPAC- DP

Scheduled: Not Scheduled

 House Bill 271 (HB 271):  This proposed legislation referred to as the "Public Finance Accountability Act." The Act establishes a framework for overseeing and managing capital expenditures by creating the Public Finance Accountability Fund, funding criteria, and grant management and oversight requirements. 

 

 House Bill 271 (HB 271): Title and Definitions (Sections 1 and 2):
•	The legislation is named the "Public Finance Accountability Act."
•	Definitions are provided for terms such as "annual audit," "department," "grant," "grant agreement," "grantee," and "state agency."

Public Finance Accountability Fund (Section 3):
•	The "public finance accountability fund" is established in the state treasury.  Administered by the office of the state auditor.
•	Money in the fund is appropriated to the office of the state auditor to assist grantees in complying with the Audit Act.

Funding Criteria (Section 4):
•	The department is tasked with establishing funding criteria for grantees to be eligible for a grant.
•	Criteria include requirements related to the grantee's annual audit, addressing material weaknesses or deficiencies, accounting methods and procedures, and compliance with financial reporting requirements.

Grant Management and Oversight Requirements (Section 5):
•	The department is required to establish grant management and oversight requirements for state agencies.
•	Requirements include ensuring approval of sales, leases, and licenses of capital assets, confirmation of compliance with applicable laws, utilization of specified grant agreement templates, and field audits of capital outlay projects.

Duties of the Department (Section 6):
•	The department is mandated to prescribe procedures, policies, and processing documents to implement funding criteria and grant management requirements.
•	Development of capital outlay grant agreement templates and criteria for granting deviations is required.
•	The department must monitor and enforce state agencies' compliance with funding criteria and grant management and oversight requirements.

Appropriation (Section 7):
•	One million dollars ($1,000,000) is appropriated from the general fund to the public finance accountability fund for the fiscal year 2025.
•	The appropriation is intended to support financial reporting for grantees not in compliance with the Audit Act.
•	Any unexpended or unencumbered balance remaining at the end of the fiscal year 2025 shall revert to the general fund.

Effective Date (Section 8):
•	The effective date of the provisions is set for July 1, 2024.
 

 Amended February 5, 2024, in HAFC

HAFCa/HB 271:

•	On page 6, lines 10 through 17, strike Section 7.
•	Renumber the succeeding sections.