Texas Senate Bill SB1702

Texas 2017 - 85th Regular

Caption

Relating to the requirements for filing an annual financial statement by a municipality.

Impact

The passage of SB1702 will notably impact how municipalities prepare and submit their annual financial statements. By requiring submission within a shorter time frame, the bill emphasizes the importance of swift financial reporting, which could help improve public trust through more timely availability of relevant financial data. Local governments will need to adjust their financial management processes to comply with this new deadline, potentially necessitating improvements in their accounting and auditing practices to meet the new requirements.

Summary

SB1702 is a legislative bill concerning the requirements related to the filing of annual financial statements by municipalities in Texas. The bill amends Section 103.003(a) of the Local Government Code to reduce the deadline for filing these financial statements from 180 days to 120 days after the fiscal year ends. This change aims to enhance the accountability and transparency of municipal financial operations, ensuring that citizens have access to timely financial information regarding their local government entities.

Contention

Though the bill aims to foster accountability, discussions around its implications may revolve around the capacity of smaller municipalities to adhere to the new timeline. Critics may argue that the reduction in the filing period could place undue pressure on local governments, especially those with limited resources, to produce comprehensive financial reports quickly. The concern is that hastily compiled reports may lead to inaccuracies, potentially undermining the bill's objective of enhancing financial transparency.