Bill Text: TX SB427 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the eligibility of certain political subdivisions to receive a state loan or grant following the political subdivision's failure to comply with certain annual financial reporting requirements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-11-21 - Filed [SB427 Detail]
Download: Texas-2025-SB427-Introduced.html
| 89R303 AMF-D | ||
| By: Hinojosa | S.B. No. 427 | |
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| relating to the eligibility of certain political subdivisions to | ||
| receive a state loan or grant following the political subdivision's | ||
| failure to comply with certain annual financial reporting | ||
| requirements. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 140, Local Government Code, is amended | ||
| by adding Section 140.014 to read as follows: | ||
| Sec. 140.014. ELIGIBILITY FOR STATE LOANS OR GRANTS | ||
| FOLLOWING FAILURE TO COMPLY WITH CERTAIN ANNUAL FINANCIAL REPORTING | ||
| REQUIREMENTS. (a) In this section, "annual financial statement or | ||
| report" means: | ||
| (1) a municipality's annual financial statement | ||
| required to be filed under Section 103.003; | ||
| (2) a county's: | ||
| (A) annual report required to be filed under | ||
| Section 114.025; or | ||
| (B) annual financial exhibit required to be | ||
| published under Section 114.022 if the county does not have a county | ||
| auditor; or | ||
| (3) a political subdivision's annual financial | ||
| statement required to be published under Section 140.006. | ||
| (b) A political subdivision that fails to file or publish an | ||
| annual financial statement or report as required by law is not | ||
| eligible to receive a state loan or grant under a state program for | ||
| the political subdivision's fiscal year in which the political | ||
| subdivision was required to file or publish the statement or | ||
| report. | ||
| (c) Each application for a state program for which a | ||
| political subdivision may not be eligible for a loan or grant under | ||
| this section must: | ||
| (1) include a statement notifying the applicant of the | ||
| requirement of this section; and | ||
| (2) require the political subdivision to demonstrate | ||
| compliance in the manner prescribed by the state agency | ||
| administering the loan or grant. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to an annual financial statement or report, as defined by Section | ||
| 140.014, Local Government Code, as added by this Act, required to be | ||
| filed or published on or after January 1, 2026. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
