Louisiana House Bill HB151

Louisiana 2020 Regular Session

• Introduced: 2/24/20
• Refer: 2/24/20
• Refer: 3/9/20
• Report Pass: 5/15/20
• Engrossed: 5/25/20

Caption

Provides relative to the use of a petty cash account

Impact

The enactment of HB 151 is expected to have significant implications for local governance in Louisiana. By formalizing the use of petty cash accounts and establishing strict guidelines for their administration, the bill enhances oversight on how public funds are handled. The requirement for a designated custodian to manage the account ensures that there is accountability, and the mandate for expenditure documentation through vouchers adds a layer of transparency to fiscal operations at the local level.

Summary

House Bill 151 aims to establish and regulate the use of petty cash accounts within political subdivisions in Louisiana. Specifically, the bill mandates that such accounts should be included in the budget of the respective political subdivision and imposes a limit of $500 per petty cash account. It is permissible to use this account to make change or to settle small obligations when issuing a check is deemed inefficient. Through this legislation, the state intends to promote better fiscal discipline and accountability in managing small cash disbursements.

Sentiment

Overall, the sentiment surrounding HB 151 appears to be positive among lawmakers, with support likely stemming from a desire for improved fiscal accountability. The bill received unanimous support during a House vote, indicating a broad consensus on the need for clearer regulations regarding petty cash usage. The lack of opposition suggests that stakeholders may view the legislation as a beneficial measure to enhance financial practices rather than as an impediment to local governance.

Contention

While there is strong support for HB 151, potential points of contention may arise concerning the administrative burdens that such regulations impose on local governments. Some critics could argue that restricting petty cash accounts could hinder operational flexibility, particularly for smaller subdivisions that may rely on these funds for immediate needs. However, the proposed safeguards are seen as necessary to prevent misuse or mismanagement of public resources.