SB1851 - Relating to the penalty for noncompliance with certain audit requirements by a municipality.

      S.B. No. 1851         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:          SECTION 1.  Chapter 103, Local Government Code, is amended   by adding Section 103.005 to read as follows:           Sec.   103.005.     ANNUAL AUDIT AND FILING OF FINANCIAL   STATEMENT; PENALTY FOR NONCOMPLIANCE.   (a)   In this section:                 (1)     "No-new-revenue tax rate" means the   no-new-revenue tax rate calculated under Chapter 26, Tax Code.                 (2)     "Tax year" has the meaning assigned by Section   1.04, Tax Code.           (b)     A person may submit a complaint to the attorney general   of a suspected violation of Section 103.001 or 103.003.           (c)     Notwithstanding 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)     for the tax year that begins on or after the date   of the attorney general's determination; or                 (2)     for 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.          SECTION 2.  This 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.          SECTION 3.  This Act takes effect September 1, 2025.             ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 1851 passed the Senate on   April 16, 2025, by the following vote:  Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 1851 passed the House on   May 10, 2025, by the following vote:  Yeas 89, Nays 31, two   present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor