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SF0038 • 2024

Financial reporting amendments-2.

AN ACT relating to financial reporting to the department of audit; amending enforcement of financial reporting requirements through limiting disbursement of certain tax revenues; clarifying good cause for extending reporting deadline; and providing for an effective date.

Taxes
Enacted

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

Sponsor
Mgt Audit
Last action
2024-03-07
Official status
enrolled
Effective date
7/1/2024

Plain English Breakdown

The official source material does not provide specific details on the consequences of withholding funds or the dissolution process for special districts, leaving some uncertainties.

Financial Reporting Changes

This law changes how cities, towns, and counties are penalized for not following financial reporting rules set by the Department of Audit.

What This Bill Does

  • Changes who can withhold money from noncompliant local governments: now it's the Department of Revenue instead of the State Treasurer or state agencies.
  • Defines 'good cause' as reasons beyond a city, town, or county’s control for missing financial reporting deadlines.
  • Requires monthly reports to be sent by the Department of Revenue and County Treasurers about withheld funds to noncompliant local governments.

Who It Names or Affects

  • Cities, towns, and counties in Wyoming
  • Special districts and entities receiving funds from municipalities
  • The Department of Revenue and County Treasurers

Terms To Know

Department of Audit
A government agency that checks financial reports to make sure they are correct.
Good cause
Reasons beyond a local government's control for missing financial reporting deadlines.

Limits and Unknowns

  • The law does not specify what happens if the withheld funds are needed urgently by noncompliant cities, towns, or counties.
  • It is unclear how this will affect small communities with limited resources to comply with complex reporting requirements.
  • The effectiveness of dissolving special districts for non-compliance may vary depending on local circumstances.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SF0038SS001

Standing Committee • Senate Appropriations Committee

Adopted

Plain English: The amendment removes certain phrases and sections related to tax levies and reporting requirements from the bill text.

  • Removes references to 'and certification of certain tax levies' in line 4 on page 1.
  • Modifies a list by changing punctuation and removing a reference to another section in lines 12-13 on page 1.
  • Deletes paragraph (v) from the text.
  • Entirely removes sections covering lines 22 onwards of page 5 and lines 1 through 10 of page 6.
  • The exact impact of these deletions on financial reporting requirements is not fully explained in the amendment text.

Bill History

  1. 2024-03-07 LSO

    Assigned Chapter Number 48

  2. 2024-03-07 Governor

    Governor Signed SEA No. 0016

  3. 2024-03-04 House

    H Speaker Signed SEA No. 0016

  4. 2024-03-04 Senate

    S President Signed SEA No. 0016

  5. 2024-03-01 LSO

    Assigned Number SEA No. 0016

  6. 2024-03-01 House

    H 3rd Reading:Passed 58-0-4-0-0

  7. 2024-02-29 House

    H 2nd Reading:Passed

  8. 2024-02-28 House

    H COW:Passed

  9. 2024-02-26 House

    H Placed on General File

  10. 2024-02-26 House

    H02 - Appropriations:Recommend Do Pass 7-0-0-0-0

  11. 2024-02-23 House

    H Introduced and Referred to H02 - Appropriations

  12. 2024-02-19 House

    H Received for Introduction

  13. 2024-02-19 Senate

    S 3rd Reading:Passed 30-0-1-0-0

  14. 2024-02-16 Senate

    S 2nd Reading:Passed

  15. 2024-02-15 Senate

    S COW:Passed

  16. 2024-02-14 Senate

    S Placed on General File

  17. 2024-02-14 Senate

    S02 - Appropriations:Recommend Amend and Do Pass 4-0-1-0-0

  18. 2024-02-13 Senate

    S Introduced and Referred to S02 - Appropriations 31-0-0-0-0

  19. 2024-01-24 Senate

    S Received for Introduction

  20. 2024-01-04 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 24LSO-0235

Bill No.:

SF0038

Effective:

7/1/2024

LSO No.:

24LSO-0235

Enrolled Act No.:

SEA No. 0016

Chapter No.:

48

Prime Sponsor:

Management Audit Committee

Catch Title:

Financial reporting amendments-2.

Has Report:

Yes

Subject:

Penalties for cities, towns and counties who fail to comply with Department of Audit financial reporting requirements.

Summary/Major Elements:

Amends which funds will be withheld from cities, towns and counties for failing to comply with Department of Audit financial reporting requirements.

Prior to this act, the State Treasurer was required to withhold annual distributions and state agencies were required to withhold grant and loan payments to noncompliant cities, towns and counties.

This bill requires the Department of Revenue to withhold monthly sales, use and lodging tax distributions for noncompliance.

The bill defines good cause for extending financial reporting deadlines.

The bill requires the Department of Revenue to report monthly to the Department of Audit, the Legislature and the noncompliant county, city or town the amount of disbursements withheld.

County treasurers are currently required to withhold funds from special districts and entities for failing to comply with the Department of Audit reporting requirements. This bill requires county treasurers to report monthly to the Department of Audit, the Legislature and the noncompliant district or entity the amount of funds withheld.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text
24LSO-0235

ORIGINAL Senate

File No
.
SF0038

ENROLLED ACT NO. 16,

SENATE

SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2024 Budget Session

AN ACT relating to financial reporting to the department of audit; amending enforcement of financial reporting requirements through limiting disbursement of certain tax revenues; clarifying good cause for extending reporting deadline; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 9
‑
1
‑
507(j) by creating a new paragraph (ii) and by amending and renumbering (ii) as (iv) and 9
‑
1
‑
510(b) are amended to read:

9
‑
1
‑
507.

Examination of books of state institutions, agencies and certain districts and entities; independent audit authorized; guidelines.

(j)

The director of the department of audit shall certify:

(ii)

To the director of the state department of revenue by October 5 of each year, a list of counties, cities and towns that failed to comply with paragraph (a)(vii) of this section. Notwithstanding any other provision of law, the director of the department of revenue shall withhold monthly disbursements of state and local sales, use and lodging tax revenues under

W.S. 39
‑
15
‑
111, 39
‑
15
‑
211, 39
‑
16
‑
111 and 39
‑
16
‑
211 to the noncompliant county, city or town for the period after October 15 until the noncompliant county, city or town has come into compliance unless good cause for noncompliance is shown to the director of the department of audit as described in W.S. 9
‑
1
‑
510(b). All withheld disbursements under this paragraph shall be retained by director of the department of revenue in the account from which the disbursement would be made until the county, city or town is in compliance with paragraph (a)(vii) of this section, or as otherwise provided by law. The director of the department of audit shall certify to the director of the department of revenue when a county, city or town comes into compliance with paragraph (a)(vii) of this section. The director of the department of revenue shall certify monthly to the department of audit, the legislature and the noncompliant county, city or town the amount of disbursements withheld until the noncompliant county, city or town has come into compliance.

(ii)
(iv)

To the board of county commissioners and to the special district or entity described in W.S. 16
‑
4
‑
125(c) that receives funding from a municipality as defined by W.S. 16
‑
4
‑
102(a)(xiv) or other entities specified in W.S. 16
‑
12
‑
202(a) by October 5 of each year any special district or other entity in the county, no matter how formed, that failed to comply with paragraph (a)(vii) of this section.

If, by November 30 of that same year, the district or other entity has failed to comply with paragraph (a)(vii) of this section, the director of the department of audit shall file notice with the county commissioners, the county treasurer and the county clerk.

The county commissioners shall place a public notice in a newspaper of general circulation in the county indicating the special district or other entity is in danger of being dissolved due to failure to comply with the legal reporting requirements. The county commissioners shall assess the special district or other entity the cost of the public notice.
Notwithstanding any other provision of law, t
he county treasurer shall withhold any further
distribution
disbursements
of money to the district
or other
entity until the department certifies to the county treasurer that the district or other entity has complied with all reporting requirements
unless good cause for noncompliance is shown to the director of the department of audit as described in W.S. 9
‑
1
‑
510(b)
. If the special district or other entity fails to file the required report on or before December 30 of that same year, the county commissioners shall seek to dissolve the special district or other entity in accordance with the process described by W.S. 22
‑
29
‑
401 et seq. This paragraph shall apply in addition to any other provision for dissolution in the principal act for a special district or other entity
.
;

The county treasurer shall certify monthly to the department of audit, the legislature and the noncompliant district or entity the amount of disbursements withheld until the noncompliant district or entity has come into compliance.

9
‑
1
‑
510.

Instructions to public officers; failure of public officer to obey.

(b)

Reports of books and accounts filed in the office of the director of the state department of audit as required by W.S. 9
‑
1
‑
507(a)(iii) shall be filed within three (3) months after the end of the fiscal year being reported, and shall be in such form and detail as the director may require.

Upon a request in writing and good cause shown, the director may allow an extension of time for filing a report or such additional information as may be required.
For purposes of this subsection, "good cause" means reasons beyond the control of the reporting entity.

The director of the department of audit may require the reporting entity to provide a letter of engagement with a certified public accountant or other evidence of good faith to establish good cause.

Section 2
.

W.S. 9
‑
1
‑
507(j)(i) and (iii) are repealed.

Section 3
.

This act is effective July 1, 2024
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1