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.
SB 427 would deny state loans or grants to cities, counties, and other local governments that fail to submit required annual financial reports. Specifically, if a local government misses filing or publishing its financial statement (as mandated by law), it becomes ineligible for state funding programs during that same fiscal year. Exceptions apply if the failure results from a declared disaster, provided the government notifies the state agency in writing detailing the circumstances. The bill requires all funding applications to include this eligibility notice and verify compliance with financial reporting rules.
Bill status
passed
3 of 5 stages cleared
Introduction
Nov 2024
Committee Review
May 2025
Senate Passage
Mar 2025
House Passage
Governor
Introduced Nov 21, 2024
Last action May 27, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Engrossed
·
4 edits
·
Mar 24, 2025
MODERATE
The bill was reformatted from an introduced draft to an engrossed version, with significant substantive changes to the eligibility rules for state loans and grants. The new version clarifies definitions, adds specific exemptions for political subdivisions created under certain constitutional sections, and introduces a disaster exemption that allows eligible entities to request loans even if they missed reporting deadlines due to natural disasters.
Scope change
The bill now explicitly includes exemptions for political subdivisions created under Section 52, Article III, or Section 59, Article XVI of the Texas Constitution, and adds a disaster exemption provision that was not present in the original draft.
ELIGIBILITY
Added specific exemptions for political subdivisions created under Section 52, Article III, or Section 59, Article XVI of the Texas Constitution from the reporting requirements.
DEFINITION
Added a formal definition for 'Disaster' referencing Section 418.004 of the Government Code.
REQUIREMENT
Added a new disaster exemption provision allowing political subdivisions to receive loans if they can provide written notice of disaster circumstances, disaster declarations, a compliance plan, and any additional required documentation.
TECHNICAL
The bill text was reformatted from an introduced draft version to an engrossed version, with improved spacing and structure while maintaining the core legislative intent.
Floor votes
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
34
Key actions
10
Committee
11
May 24, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 23, 2025
Lower · Passed
Committee report distributed
lower
May 21, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
May 14, 2025
Lower · Passed
Left pending in committee
lower
May 13, 2025
Lower · Passed
No action taken in committee
lower
Apr 22, 2025
Committee
Referred to Intergovernmental Affairs
lower
Apr 22, 2025
Introduced
Read first time
lower
Mar 25, 2025
Introduced
Received from the Senate
lower
Mar 24, 2025
Upper · Passed
Passed
upper
Mar 17, 2025
Upper · Passed
Committee report printed and distributed
upper
Mar 17, 2025
Upper · Passed
Reported favorably as substituted
upper
Mar 13, 2025
Upper · Passed
Vote taken in committee
upper
Mar 10, 2025
Upper · Passed
Left pending in committee
upper
Feb 3, 2025
Committee
Referred to Local Government
upper
Feb 3, 2025
Introduced
Read first time
upper
2 primary · 0 co-sponsors
Sponsors
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