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SB1851 • 2025

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

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

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Nichols
Last action
2025-05-24
Official status
05/24/2025 E Effective on 9/1/25
Effective date
2025-05-24

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

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

What This Bill Does

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

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-05-24 Texas Legislature Online

    Signed by the Governor

  2. 2025-05-24 Texas Legislature Online

    Effective on 9/1/25

  3. 2025-05-13 Texas Legislature Online

    Signed in the Senate

  4. 2025-05-13 Texas Legislature Online

    Signed in the House

  5. 2025-05-13 Texas Legislature Online

    Sent to the Governor

  6. 2025-05-12 Texas Legislature Online

    House passage reported

  7. 2025-05-12 Texas Legislature Online

    Reported enrolled

  8. 2025-05-10 Texas Legislature Online

    Committee report sent to Calendars

  9. 2025-05-10 Texas Legislature Online

    Read 3rd time

  10. 2025-05-10 Texas Legislature Online

    Passed

  11. 2025-05-10 Texas Legislature Online

    Record vote. RV#2070

  12. 2025-05-10 Texas Legislature Online

    Statement(s) of vote recorded in Journal

  13. 2025-05-09 Texas Legislature Online

    Comte report filed with Committee Coordinator

  14. 2025-05-09 Texas Legislature Online

    Committee report distributed

  15. 2025-05-09 Texas Legislature Online

    Laid out in lieu of companion. HB 4097

  16. 2025-05-09 Texas Legislature Online

    Read 2nd time

  17. 2025-05-09 Texas Legislature Online

    Passed to 3rd reading

  18. 2025-05-09 Texas Legislature Online

    Record vote. RV#1942

  19. 2025-05-09 Texas Legislature Online

    Statement(s) of vote recorded in Journal

  20. 2025-04-28 Texas Legislature Online

    Considered in formal meeting

  21. 2025-04-28 Texas Legislature Online

    Reported favorably w/o amendment(s)

  22. 2025-04-22 Texas Legislature Online

    Read first time

  23. 2025-04-22 Texas Legislature Online

    Referred to Intergovernmental Affairs

  24. 2025-04-17 Texas Legislature Online

    Received from the Senate

  25. 2025-04-16 Texas Legislature Online

    Placed on local & uncontested calendar

  26. 2025-04-16 Texas Legislature Online

    Placed on intent calendar

  27. 2025-04-16 Texas Legislature Online

    Laid before the Senate

  28. 2025-04-16 Texas Legislature Online

    Read 2nd time & passed to engrossment

  29. 2025-04-16 Texas Legislature Online

    Vote recorded in Journal

  30. 2025-04-16 Texas Legislature Online

    Three day rule suspended

  31. 2025-04-16 Texas Legislature Online

    Record vote

  32. 2025-04-16 Texas Legislature Online

    Read 3rd time

  33. 2025-04-16 Texas Legislature Online

    Passed

  34. 2025-04-16 Texas Legislature Online

    Record vote

  35. 2025-04-16 Texas Legislature Online

    Reported engrossed

  36. 2025-04-14 Texas Legislature Online

    Not again placed on intent calendar

  37. 2025-04-10 Texas Legislature Online

    Placed on intent calendar

  38. 2025-04-07 Texas Legislature Online

    Reported favorably w/o amendments

  39. 2025-04-07 Texas Legislature Online

    Recommended for local & uncontested calendar

  40. 2025-04-07 Texas Legislature Online

    Committee report printed and distributed

  41. 2025-04-03 Texas Legislature Online

    Considered in public hearing

  42. 2025-04-03 Texas Legislature Online

    Vote taken in committee

  43. 2025-03-31 Texas Legislature Online

    Scheduled for public hearing on . . .

  44. 2025-03-31 Texas Legislature Online

    Considered in public hearing

  45. 2025-03-31 Texas Legislature Online

    Testimony taken in committee

  46. 2025-03-31 Texas Legislature Online

    Left pending in committee

  47. 2025-03-17 Texas Legislature Online

    Read first time

  48. 2025-03-17 Texas Legislature Online

    Referred to Local Government

  49. 2025-03-04 Texas Legislature Online

    Received by the Secretary of the Senate

  50. 2025-03-04 Texas Legislature Online

    Filed

Official Summary Text

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

Current Bill Text

Read the full stored bill text 
89(R) SB 1851 - Enrolled version - Bill Text

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