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Introduced Senate Bill (S)

DIGEST

State and local audit examinations. Provides that after June 30, 2022, a political subdivision 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 state board of accounts (SBOA) with the assistance of the department of local government finance (DLGF); and (2) presented the report to the fiscal body of the political subdivision in a public hearing. Provides that after June 30, 2022, political subdivisions must provide information concerning pledges, covenants, and agreements that they have made to State and local audit examinations. Provides that after June 30, 2022, a political subdivision 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 state board of accounts (SBOA) with the assistance of the department of local government finance (DLGF); and (2) presented the report to the fiscal body of the political subdivision in a public hearing. Provides that after June 30, 2022, political subdivisions must provide information concerning pledges, covenants, and agreements that they have made to secure or guarantee a financial obligation of another person to the DLGF in the form and on the schedule specified by the DLGF. Requires the SBOA to establish standards for the state and political subdivisions that require disclosure of pledges, covenants, and agreements that have been made to secure or guarantee a financial obligation of another person, including guarantees for private bond issues of private companies. Specifies that the standards must be consistent with generally accepted governmental accounting principles. Requires, in reporting periods beginning after June 30, 2022, the state and political subdivisions to include the disclosures in the notes of the entity's annual financial statements. ... View more