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Committee advances bill to codify reliefs for local recipients of capital outlay and special appropriations
Summary
A committee substitute for House Bill 493 would codify an executive order and create relief mechanisms — fiscal agents, appeals and force majeure — to allow local public bodies to receive capital outlay and special appropriations while resolving audit or compliance deficiencies.
The committee approved a substitute for House Bill 493, a bill that would codify guidance long in executive‑order form and create additional relief options to help local public bodies receive and manage state capital outlay and special appropriations.
Sponsor Representative Borrego and witnesses from the Office of the State Auditor described the measure as an effort to balance two goals: ensure public funds are spent under required controls and avoid indefinitely withholding capital outlay dollars from smaller local governments and special districts that are behind on audits or otherwise out of compliance. The substitute adds a force‑majeure provision and formalizes options such as allowing a grantee to use an approved fiscal agent to receive and manage a grant, and an administrative appeal route to the chief financial officer in the granting agency for dispute resolution.
Deputy State Auditor Ricky Bejarano and staff said the Office of the State Auditor has programs targeted at small local public bodies and has already used funds to unlock about $5.2 million for entities whose distributions were withheld. The committee discussed longstanding capacity constraints: a shortage of available auditors and processing backlogs at DFA and other agencies. Several lawmakers said those operational limits need continued attention and additional staffing.
Representative Herrera and others raised concerns that statutory codification should not outpace the state’s ability to administer reliefs, noting DFA and the State Auditor had asked for additional positions and resources during the budget process. Sponsors said the committee substitute reflects adjustments to add relief valves while preserving audit and internal control standards.
On a voice‑and‑hand count, the committee approved the committee substitute and recommended the bill with a do‑pass recommendation. A small number of members raised objections at the vote (Representatives Herrera, Silva and Vincent were recorded in opposition during the hand raise), but the measure advanced for further consideration.
