Texas 2025 - 89th Regular

Texas Senate Bill SB427 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Hinojosa of Hidalgo S.B. No. 427
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	2	+	(In the Senate - Filed November 21, 2024; February 3, 2025,
	3	+	read first time and referred to Committee on Local Government;
	4	+	March 17, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 6, Nays 0; March 17, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 427 By: Cook
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6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the eligibility of certain political subdivisions to
9	14		receive a state loan or grant following the political subdivision's
10	15		failure to comply with certain financial reporting requirements.
11	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	17		SECTION 1. Chapter 140, Local Government Code, is amended
13	18		by adding Section 140.014 to read as follows:
14	19		Sec. 140.014. ELIGIBILITY FOR STATE LOANS OR GRANTS
15	20		FOLLOWING FAILURE TO COMPLY WITH CERTAIN ANNUAL FINANCIAL REPORTING
16	21		REQUIREMENTS. (a) In this section:
17	22		(1) "Annual financial statement or report" means:
18	23		(A) a municipality's annual financial statement
19	24		required to be filed under Section 103.003;
20	25		(B) a county's:
21	26		(i) annual report required to be filed
22	27		under Section 114.025; or
23	28		(ii) annual financial exhibit required to
24	29		be published under Section 114.022 if the county does not have a
25	30		county auditor; or
26	31		(C) a political subdivision's annual financial
27	32		statement required to be published under Section 140.006.
28	33		(2) "Disaster" has the meaning assigned by Section
29	34		418.004, Government Code.
30	35		(b) Except as provided by Subsection (e), a political
31	36		subdivision that fails to file or publish an annual financial
32	37		statement or report as required by law is not eligible to receive a
33	38		state loan or grant under a state program for the political
34	39		subdivision's fiscal year in which the political subdivision was
35	40		required to file or publish the statement or report.
36	41		(c) Except as provided by Subsection (e), a political
37	42		subdivision created under Section 52, Article III, or Section 59,
38	43		Article XVI, Texas Constitution, is not eligible to receive a state
39	44		loan or grant in a fiscal year in which:
40	45		(1) the political subdivision is required by financial
41	46		reporting requirements prescribed by the agency administering the
42	47		state loan or grant to publish a financial statement or report; and
43	48		(2) the political subdivision fails to file or publish
44	49		the financial statement or report described by Subdivision (1).
45	50		(d) Each application for a state program for which a
46	51		political subdivision may not be eligible for a loan or grant under
47	52		this section must:
48	53		(1) include a statement notifying the applicant of the
49	54		requirement of this section; and
50	55		(2) require the political subdivision to demonstrate
51	56		compliance in the manner prescribed by the state agency
52	57		administering the loan or grant.
53	58		(e) Subsections (b) and (c) do not apply to a political
54	59		subdivision that:
55	60		(1) fails to file or publish a financial statement or
56	61		report because of a disaster; and
57	62		(2) provides the following to the agency administering
58	63		the state loan or grant:
59	64		(A) written notice detailing the circumstances
60	65		of the disaster and its impact on the compliance with the financial
61	66		reporting requirements;
62	67		(B) a disaster declaration issued by the governor
63	68		under Chapter 418, Government Code, or any documentation from a
64	69		federal, state, or local authority confirming the occurrence of the
65	70		disaster;
66	71		(C) a plan for compliance, including an estimated
67	72		timeline for filing or publishing the required financial statement
68	73		or report; and
69	74		(D) any additional documentation required by the
70	75		agency responsible for administering the loan or grant.
71	76		SECTION 2. The change in law made by this Act applies only
72	77		to a financial statement or report required to be filed or published
73	78		on or after January 1, 2026.
74	79		SECTION 3. This Act takes effect September 1, 2025.
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