LOCAL GOV-RESTRICTED FUNDS

Session: 104th General Assembly
Year: 2026
Bill #: HB5040
Category: Revenue
Position: Under Review
Mandate?
Revenue Loss?
Authority Preemption?

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Summary as Introduced

Amends the State Comptroller Act. Prohibits the State Comptroller from withholding, offsetting, or otherwise applying against any debt any funds payable to a unit of local government if those funds are restricted for a specific purpose by federal or State law, county ordinance, or grant agreement. Amends the Code of Civil Procedure. Exempts all funds, revenues, or accounts that are restricted by federal law, State, law, county ordinance, or grant agreement for a specific public purpose from garnishment, attachment, or any other legal process to satisfy a judgment or debt. Effective immediately.



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