TX SB427

Political subdivisions that fail to file or publish required annual financial statements or reports become ineligible to receive state loans or grants for that fiscal year

The requirement applies to municipalities, counties, and other political subdivisions, including special districts created under the Texas Constitution for conservation, reclamation, or development purposes

State loan and grant applications must include a statement notifying applicants of the financial reporting compliance requirement and require political subdivisions to demonstrate compliance

An exception exists for political subdivisions affected by disasters, provided they submit written notice explaining the circumstances, disaster declaration documentation, a compliance plan with timeline, and any additional required documentation to the administering agency

The law takes effect September 1, 2025, and applies to financial statements or reports required to be filed on or after January 1, 2026