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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of certain political subdivisions to |
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receive a state loan or grant following the political subdivision's |
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failure to comply with certain annual financial reporting |
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requirements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.014 to read as follows: |
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Sec. 140.014. ELIGIBILITY FOR STATE LOANS OR GRANTS |
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FOLLOWING FAILURE TO COMPLY WITH CERTAIN ANNUAL FINANCIAL REPORTING |
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REQUIREMENTS. (a) In this section, "annual financial statement or |
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report" means: |
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(1) a municipality's annual financial statement |
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required to be filed under Section 103.003; |
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(2) a county's: |
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(A) annual report required to be filed under |
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Section 114.025; or |
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(B) annual financial exhibit required to be |
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published under Section 114.022 if the county does not have a county |
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auditor; or |
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(3) a political subdivision's annual financial |
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statement required to be published under Section 140.006. |
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(b) A political subdivision that fails to file or publish an |
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annual financial statement or report as required by law is not |
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eligible to receive a state loan or grant under a state program for |
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the political subdivision's fiscal year in which the political |
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subdivision was required to file or publish the statement or |
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report. |
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(c) Each application for a state program for which a |
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political subdivision may not be eligible for a loan or grant under |
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this section must: |
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(1) include a statement notifying the applicant of the |
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requirement of this section; and |
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(2) require the political subdivision to demonstrate |
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compliance in the manner prescribed by the state agency |
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administering the loan or grant. |
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SECTION 2. The change in law made by this Act applies only |
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to an annual financial statement or report, as defined by Section |
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140.014, Local Government Code, as added by this Act, required to be |
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filed or published on or after January 1, 2026. |
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SECTION 3. This Act takes effect September 1, 2025. |