| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
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 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: |
|
|
(1) "Annual financial statement or report" means: |
|
|
(A) a municipality's annual financial statement |
|
|
required to be filed under Section 103.003; |
|
|
(B) a county's: |
|
|
(i) annual report required to be filed |
|
|
under Section 114.025; or |
|
|
(ii) annual financial exhibit required to |
|
|
be published under Section 114.022 if the county does not have a |
|
|
county auditor; or |
|
|
(C) a political subdivision's annual financial |
|
|
statement required to be published under Section 140.006. |
|
|
(2) "Disaster" has the meaning assigned by Section |
|
|
418.004, Government Code. |
|
|
(b) Except as provided by Subsection (e), 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) Except as provided by Subsection (e), a political |
|
|
subdivision created under Section 52, Article III, or Section 59, |
|
|
Article XVI, Texas Constitution, is not eligible to receive a state |
|
|
loan or grant in a fiscal year in which: |
|
|
(1) the political subdivision is required by financial |
|
|
reporting requirements prescribed by the agency administering the |
|
|
state loan or grant to publish a financial statement or report; and |
|
|
(2) the political subdivision fails to file or publish |
|
|
the financial statement or report described by Subdivision (1). |
|
|
(d) 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. |
|
|
(e) Subsections (b) and (c) do not apply to a political |
|
|
subdivision that: |
|
|
(1) fails to file or publish a financial statement or |
|
|
report because of a disaster; and |
|
|
(2) provides the following to the agency administering |
|
|
the state loan or grant: |
|
|
(A) written notice detailing the circumstances |
|
|
of the disaster and its impact on the compliance with the financial |
|
|
reporting requirements; |
|
|
(B) a disaster declaration issued by the governor |
|
|
under Chapter 418, Government Code, or any documentation from a |
|
|
federal, state, or local authority confirming the occurrence of the |
|
|
disaster; |
|
|
(C) a plan for compliance, including an estimated |
|
|
timeline for filing or publishing the required financial statement |
|
|
or report; and |
|
|
(D) any additional documentation required by the |
|
|
agency responsible for administering the loan or grant. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to a financial statement or report required to be filed or published |
|
|
on or after January 1, 2026. |
|
|
SECTION 3. This Act takes effect September 1, 2025. |
|
|
|
|
|
* * * * * |