1. Section 140.008, Texas Local Government Code (HB 1378)
Fiscal Transparency and Accountability of Political Subdivisions * * * * *
Section , Texas Local Government Code (HB 1378)

2. Imposition of Reporting Requirements
HB 1378 imposed certain annual financial reporting requirements on political subdivisions
Political subdivisions must annually compile and report certain financial information

3. Who must report? “political subdivisions” counties municipalities
school districts
junior college districts
other special districts
other subdivisions of state government

4. Manner of Compliance Political subdivisions must
post requisite information on website
make such report available for inspection by the public
Alternative methods of compliance may be followed
Provide information to Comptroller
Special rule for Water Districts

5. Reporting Deadline
Deadline for compliance established by Comptroller of Public Accounts
For fiscal years after FY 2016: report must be issued no later than 180 days after reporting entity’s fiscal year end

6. Information Reported As of the last day of the preceding fiscal year:
amount of all authorized debt obligations;
principal of all outstanding debt obligations;
principal of each outstanding debt obligation;
combined principal and interest required to pay all outstanding debt obligations on time and in full;
combined principal and interest required to pay each outstanding debt obligation on time and in full;

7. Information Reported (continued)
As of the last day of the preceding fiscal year:
amounts required by bullets on Slide 6, limited to authorized and outstanding debt obligations secured by ad valorem taxation:
expressed as a total amount; and
expressed as a per capita amount, if the political subdivision is a municipality, county, or school district

8. Information Reported (continued)
As of the last day of the preceding fiscal year:
the following for each debt obligation:
the issued and unissued amount;
the spent and unspent amount;
the maturity date; and
the stated purpose for which the debt obligation was authorized

9. Information Reported (continued)
The current credit rating given by any nationally recognized credit rating organization to debt obligations of the political subdivision

10. Information Reported (continued)
Any other information that the political subdivision considers relevant or necessary to explain the values required by bullets on Slides 6 and 7, including. . .

11. Information Reported (continued)
the amount of authorized and outstanding debt obligations secured by ad valorem taxation (Slide 7), stated as a per capita amount, if the political subdivision is not required to provide the amount under Slide 7
an explanation of the payment sources for the different types of debt
a projected per capita amount of authorized and outstanding debt obligations secured by ad valorem taxation, as of the last day of the maximum term of the most recent debt obligation issued by the political subdivision

12. Compliance - Primary Method
Annual report:
must be available for inspection by any person
must be posted continuously on the political subdivision's website until the political subdivision posts its next annual report

13. Compliance - Primary Method
No requirement that information be posted in any particular location on website
If required information is already posted on website, political subdivision may include in the annual report a direct link or a clear statement describing the location of the information

14. Compliance - Alternative Methods
Comptroller report:
Information submitted through portal on the Comptroller’s website
No submissions through hard copy or
No additional information for entities filing the Comptroller’s report pursuant to Section (d)
If political subdivision maintains a website, must also provide a link to the location on the Comptroller’s website where the annual report may be viewed.

15. Compliance - Alternative Methods
Small municipalities (population < 15,000)
Counties (population < 35,000)
Per Comptroller’s guidelines, small municipalities and counties use same reporting form and uploading solution as other political subdivisions

16. Compliance – Main Office
Must ensure that contact information for the “main office” of the political subdivision is continuously posted on the political subdivision’s website
Main office is not defined

17. Compliance – Main Office
Must post the following information relative to the “main office”:
physical address
mailing address
main telephone number
address
Lack of definition should provide flexibility to proclaim the location of “main office” in cases where location is unclear

18. Compliance – Special Rule Water Districts
Water district: “district” as defined by Section , Texas Water Code
Water districts comply by
submitting an audit, affidavit of financial dormancy or annual financial report, as applicable, to the Comptroller; and
complying with Chapter 49, Texas Water Code’s requirements relative to such documents.
including requirement to file audit, affidavit of financial dormancy or annual financial report with the Texas Commission on Environmental Quality within 135 days after the close of the water district's fiscal year.

19. Noncompliance
Statute does not provide penalty for failure to comply

20. QUESTIONS?