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Introduced Senate Bill (S)

DIGEST

State and local audit examinations. Beginning July 1, 2021, requires the uniform compliance guidelines for audit examinations of state or local units by the state board of accounts (SBOA) to include disclosure of any pledge, covenant, or agreement that the unit has made as security or guarantor for a private bond issue of a private company. Requires an entity subject to SBOA examination or audit to disclose in the notes of the entity's financial statements any pledge, covenant, or agreement that the entity has made as security or guarantor for a private bond issue of a private company. Beginning July State and local audit examinations. Beginning July 1, 2021, requires the uniform compliance guidelines for audit examinations of state or local units by the state board of accounts (SBOA) to include disclosure of any pledge, covenant, or agreement that the unit has made as security or guarantor for a private bond issue of a private company. Requires an entity subject to SBOA examination or audit to disclose in the notes of the entity's financial statements any pledge, covenant, or agreement that the entity has made as security or guarantor for a private bond issue of a private company. Beginning July 1, 2021, provides that a political subdivision subject to SBOA audit may not issue or guarantee a debt obligation until the fiscal officer of the political subdivision has: (1) prepared a debt capacity analysis report (report) on a standard form prescribed by the SBOA with the assistance of the department of local government finance; and (2) presented the report to the fiscal body of the political subdivision in a public hearing. Requires the report to include a determination of the percentage of the political subdivision's total debt obligations (including guarantees) compared to the political subdivision's prospective revenue available for debt service. ... View more