89R303 AMF-D     By: Hinojosa S.B. No. 427       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 annual 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, "annual financial statement or   report" means:                (1)  a municipality's annual financial statement   required to be filed under Section 103.003;                (2)  a county's:                      (A)  annual report required to be filed under   Section 114.025; or                      (B)  annual financial exhibit required to be   published under Section 114.022 if the county does not have a county   auditor; or                (3)  a political subdivision's annual financial   statement required to be published under Section 140.006.          (b)  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)  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.          SECTION 2.  The change in law made by this Act applies only   to an annual financial statement or report, as defined by Section   140.014, Local Government Code, as added by this Act, required to be   filed or published on or after January 1, 2026.          SECTION 3.  This Act takes effect September 1, 2025.