S.B. No. 427 amends the Local Government Code by adding Section 140.014, which establishes eligibility criteria for political subdivisions seeking state loans or grants after failing to comply with certain annual financial reporting requirements. Specifically, the bill stipulates that a political subdivision that does not file or publish the required financial statements or reports is ineligible for state financial assistance for the fiscal year in which the non-compliance occurred. This includes municipalities and counties, with specific definitions provided for what constitutes an "annual financial statement or report."

However, the bill includes provisions that allow for exceptions in cases where a political subdivision fails to meet these requirements due to a disaster. In such instances, the subdivision must provide written notice of the disaster's impact, a disaster declaration, a compliance plan, and any additional documentation required by the administering agency. The changes will apply to financial statements or reports required to be filed or published on or after January 1, 2026, and the act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: ()
Senate Committee Report: ()
Engrossed: ()