Paxton Sends City Financial Review Letters for HB 3699

AUSTIN – Attorney General Ken Paxton's office has initiated a statewide compliance push, sending nearly a thousand financial review letters to cities across Texas. The action follows the implementation of House Bill 3699, which became effective on January 1, 2024, mandating new financial reporting requirements for municipalities.

House Bill 3699 requires Texas cities to submit comprehensive financial information to the Office of the Attorney General. This includes audited financial reports, details regarding unfunded liabilities, and specifics on any public-private partnerships. Submissions are to be made through an online form provided by the AG's office.

The letters serve as a formal reminder to municipalities about these new legal obligations. Upon receipt, cities have 30 days to respond, either confirming their current compliance with HB 3699 or providing a detailed plan outlining how they intend to achieve compliance.

Attorney General Paxton emphasized the importance of the new law, stating, "Transparency and fiscal responsibility aren't just suggestions for Texas cities; they're legal requirements." He indicated that his office intends to use HB 3699 as a tool to hold cities accountable to taxpayers. Non-compliant municipalities could face enforcement actions from the Attorney General's office.

Further information regarding HB 3699 and the compliance portal can be found on the Texas Attorney General's official website, www.texasattorneygeneral.gov.