Texas SB 1851: Relating to the penalty for noncompliance with certain audit requirements by a municipality.

Bill Text

S.B.ANo.A1851
AN ACT
relating to the penalty for noncompliance with certain audit
requirements by a municipality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTIONA1.AAChapter 103, Local Government Code, is amended
by adding Section 103.005 to read as follows:
Sec.A103.005.AAANNUAL AUDIT AND FILING OF FINANCIAL
STATEMENT; PENALTY FOR NONCOMPLIANCE. (a) In this section:
(1)AA"No-new-revenue tax rate" means the
no-new-revenue tax rate calculated under Chapter 26, Tax Code.
(2)AA"Tax year" has the meaning assigned by Section
1.04, Tax Code.
(b)AAA person may submit a complaint to the attorney general
of a suspected violation of Section 103.001 or 103.003.
(c)AANotwithstanding any other law, if the attorney general
determines that a municipality has not had its records and accounts
audited and an annual financial statement prepared based on the
audit as required by Section 103.001 or has not filed the financial
statement and the auditor’s opinion on the statement in the office
of the municipal secretary or clerk before the 180th day after the
last day of the municipality’s fiscal year as required by Section
103.003, the municipality may not adopt an ad valorem tax rate that
exceeds the municipality’s no-new-revenue tax rate:
(1)AAfor the tax year that begins on or after the date
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of the attorney general’s determination; or
(2)AAfor a subsequent tax year that begins before the
date the municipality has had an annual audit completed and
financial statement prepared or filed the financial statement and
auditor’s opinion on the financial statement with the municipal
clerk, as applicable.
SECTIONA2.AAThis Act applies only to the adoption of an ad
valorem tax rate for a tax year that begins on or after the
effective date of this Act.
SECTIONA3.AAThis Act takes effect September 1, 2025.
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S.B.ANo.A1851
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______________________________ ______________________________
President of the SenateAAAAAAAAAAAAASpeaker of the House
I hereby certify that S.B.ANo.A1851 passed the Senate on
April 16,A2025, by the following vote:AAYeasA31, NaysA0.
______________________________
AAAASecretary of the Senate
I hereby certify that S.B.ANo.A1851 passed the House on
MayA10,A2025, by the following vote:AAYeasA89, NaysA31, two
present not voting.
______________________________
AAAAChief Clerk of the House
Approved:
______________________________
AAAAAAAAAAAAADate
______________________________
AAAAAAAAAAAGovernor
S.B.ANo.A1851
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