SB 724
Modifies provisions relating to financial statements of political subdivisions
Sponsor:
LR Number:
4303S.01I
Last Action:
1/26/2022 - Hearing Scheduled S Local Government and Elections Committee
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2022

Current Bill Summary

SB 724 - Under current law, any transportation development district having gross revenues of less than $5,000 in a fiscal year for which an annual financial statement was not timely filed to the State Auditor is not subject to a fine.

This act provides that any political subdivision that has gross revenues of less than $5,000 or that has not levied or collected sales or use taxes in the fiscal year for which the annual financial statement was not timely filed shall not be subject to a fine.

Additionally, if failure to timely submit the annual financial statement is the result of fraud or other illegal conduct by an employee or officer of the political subdivision, the political subdivision shall not be subject to a fine if the statement is filed within 30 days of discovery of the fraud or illegal conduct.

If the political subdivision has an outstanding balance for fines at the time it files its first annual financial statement after August 28, 2022, the Director of Revenue shall make a one-time downward adjustment to such outstanding balance in an amount that reduces the outstanding balance by 90%. If the Director of Revenue determines a fine is uncollectable, the Director shall have the authority to make a one-time downward adjustment to any outstanding penalty.

This act provides that if a political subdivision with outstanding fines or penalties fails to file a financial statement after August 28, 2022 and before January 31, 2023 or fails to file any financial statement after January 31, 2023, the Director of Revenue shall notify the Attorney General who shall initiate the process to disincorporate the political subdivision.

Additionally, a resident of a political subdivision may file an affidavit with the Attorney General with information regarding the political subdivision's failure to report. The Attorney General shall evaluate the allegation and, if true, notify the political subdivision it has 30 days to comply with the reporting requirements of this act. If the political subdivision fails to comply within the 30 days, the Attorney General shall initiate the process to disincorporate a political subdivision as provided in the act.

The question of whether a political subdivision may be subject to disincorporation shall be submitted to the voters of the political subdivision as provided in the act. Upon the affirmative vote of a majority of voters in the political subdivision, the Attorney General shall file an action to disincorporate the political subdivision in the circuit court with jurisdiction over the political subdivision. The circuit court shall enforce such orders and carry out remedies as provided in the act.

This act is identical to HB 826 (2021) and similar to provisions in SCS/SB 527 (2021) and HCS/HB 441 (2021).

MARY GRACE PRINGLE

Amendments

No Amendments Found.