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SF0074 • 2024

Special districts-reversal of dissolution for noncompliance.

AN ACT relating to special districts; providing a process by which special districts required to dissolve for audit report noncompliance may reinstate the special district or cease the dissolution; specifying requirements for reinstatement; making conforming amendments; and providing for an effective date.

Enacted

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

Sponsor
Senator Cooper
Last action
2024-03-18
Official status
enrolled
Effective date
3/18/2024

Plain English Breakdown

The official source material does not provide specific details about what happens if a district fails to submit a corrective action plan or if it is rejected by the board of county commissioners.

Special Districts Can Be Reinstated After Noncompliance

This law allows special districts to be reinstated if they become compliant with audit reporting requirements after being required to dissolve due to noncompliance.

What This Bill Does

  • Allows a board of county commissioners to reinstate a dissolved special district that has come into compliance with audit and reporting requirements by April 1st.
  • Requires the Department of Audit to certify that the special district is now compliant before reinstatement can occur.
  • Necessitates a corrective action plan from the special district, which must be approved by the board of county commissioners.
  • Specifies that if a special district is reinstated, it will be treated as though it was never dissolved.

Who It Names or Affects

  • Special districts required to dissolve due to noncompliance with audit reporting requirements.
  • Boards of county commissioners responsible for dissolving and potentially reinstating special districts.
  • The Department of Audit, which must certify compliance before a district can be reinstated.

Terms To Know

Special District
A local government unit established to provide specific services within its boundaries.
Audit Reporting Requirements
The legal requirements for special districts to submit financial and operational reports to the Department of Audit.

Limits and Unknowns

  • This law only applies if a district becomes compliant by April 1st.
  • It does not specify what happens if a district fails to provide a corrective action plan or if the board of county commissioners rejects it.
  • The effectiveness and impact depend on how strictly compliance is enforced.

Bill History

  1. 2024-03-18 LSO

    Assigned Chapter Number 89

  2. 2024-03-18 Governor

    Governor Signed SEA No. 0031

  3. 2024-03-06 House

    H Speaker Signed SEA No. 0031

  4. 2024-03-05 Senate

    S President Signed SEA No. 0031

  5. 2024-03-05 LSO

    Assigned Number SEA No. 0031

  6. 2024-03-05 House

    H 3rd Reading:Passed 60-1-1-0-0

  7. 2024-03-04 House

    H 2nd Reading:Passed

  8. 2024-03-01 House

    H COW:Passed

  9. 2024-02-29 House

    H Placed on General File

  10. 2024-02-29 House

    H08 - Transportation:Recommend Do Pass 9-0-0-0-0

  11. 2024-02-28 House

    H Introduced and Referred to H08 - Transportation

  12. 2024-02-28 House

    H Received for Introduction

  13. 2024-02-27 Senate

    S 3rd Reading:Passed 31-0-0-0-0

  14. 2024-02-26 Senate

    S 2nd Reading:Passed

  15. 2024-02-23 Senate

    S COW:Passed

  16. 2024-02-20 Senate

    S Placed on General File

  17. 2024-02-20 Senate

    S07 - Corporations:Recommend Do Pass 4-0-1-0-0

  18. 2024-02-13 Senate

    S Introduced and Referred to S07 - Corporations 31-0-0-0-0

  19. 2024-02-09 Senate

    S Received for Introduction

  20. 2024-02-05 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 24LSO-0513

Bill No.:

SF0074

Effective:

Immediately

LSO No.:

24LSO-0513

Enrolled Act No.:

SEA No. 0031

Chapter No.:

89

Prime Sponsor:

Cooper

Catch Title:

Special districts-reversal of dissolution for noncompliance.

Has Report:

No

Subject:

Providing a process by which a board of county commissioners may reinstate a dissolved special district that is dissolved for audit noncompliance.

Summary/Major Elements:

Under current law, a special district must be dissolved if the director of the Department of Audit notifies the board of county commissioners of the district's failure to comply with statutory audit reporting requirements. After receiving this notice, the board of county commissioners must declare the special district's board of directors vacant and must fill the board for the purpose of dissolving the district.

This act authorizes a board of county commissioners to, by resolution, reinstate a special district or cease the dissolution process for a special district that comes into compliance with the statutory audit and reporting requirements by April 1. The reinstatement can occur only after the Department of Audit certifies that the district has become compliant with the audit and reporting requirements.

Before a special district is reinstated, the special district must provide a corrective action plan to the board of county commissioners, which must approve the plan before proceeding with reinstatement.

A special district that is reinstated is deemed to have never been dissolved, and the board of county commissioners may: (1) allow the special district to proceed with the directors appointed for purposes of dissolution; or (2) declare the board of directors vacant and fill the board by appointment in accordance with law.

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-0513

ORIGINAL Senate

File No
.
SF0074

ENROLLED ACT NO. 31,

SENATE

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

AN ACT relating to special districts; providing a process by which special districts required to dissolve for audit report noncompliance may reinstate the special district or cease the dissolution; specifying requirements for reinstatement; making conforming amendments; and providing for an effective date.

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

Section 1
.

W.S. 22
‑
29
‑
103(b) and 22
‑
29
‑
401(b) and by creating a new subsection (c) are amended to read:

22
‑
29
‑
103.

Applicability to special districts; general provisions.

(b)

This act specifies requirements pertaining to elections and changes in the organization of the districts listed in subsection (a) of this section where the principal act is silent or unclear. Except as provided by W.S. 22
‑
29
‑
401(b)
and (c)
, the specific provisions of a principal act are effective and controlling to the extent they conflict with this act.

22
‑
29
‑
401.

Dissolution procedure.

(b)

Subject to subsection (c) of this section, d
issolution of a district shall be initiated by resolution of the board of county commissioners if the director of the department of audit has notified the board of county commissioners of the district's failure to comply with the reporting requirements of W.S. 9
‑
1
‑
507, and the district has failed to comply with W.S. 9
‑
1
‑
507(a)(vii) by December 30 of that same calendar year. The board of county commissioners shall declare the board of directors vacant under W.S. 22
‑
29
‑
201, and shall fill the board by appointment under W.S. 22
‑
29
‑
202 for the purpose of dissolving the district.

(c)

A board of county commissioners may, by resolution, reinstate a district or cease dissolution procedures required under subsection (b) of this section in accordance with the following:

(i)

The district shall become compliant with the requirements of W.S. 9
‑
1
‑
507 by not later than April 1 of the year following the calendar year in which the district fails to comply with the annual reporting requirement under W.S. 9
‑
1
‑
507;

(ii)

Before a district is reinstated or before dissolution procedures are ceased under this subsection, the district shall provide a corrective action plan to the board of county commissioners, which shall approve the plan submitted by the district before proceeding under this subsection;

(iii)

No reinstatement of a district or cessation of dissolution procedures shall occur unless the department of audit certifies to the board of county commissioners in writing that the district has become compliant with the reporting requirements of W.S. 9
‑
1
‑
507;

(iv)

A district reinstated under this subsection shall be deemed to have never been dissolved;

(v)

The board of county commissioners may:

(A)

Allow the district to proceed with the board of directors appointed under subsection (b) of this section; or

(B)

Upon reinstatement, declare the board of directors vacant under W.S. 22
‑
29
‑
201. Upon a declaration of vacancy under this subparagraph, the board of county commissioners shall fill the board by appointment under W.S. 22
‑
29
‑
202.

Section 2
.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(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