HB 5064
Relating to municipalities that have failed to complete required financial audits for multiple years
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill addresses municipalities in West Virginia that have repeatedly failed to complete required financial audits. It establishes criteria for declaring a fiscal emergency, allows the State Auditor to assess a municipality’s chances of recovery, and outlines a process for transitioning to dissolution if a municipality cannot demonstrate financial stability. The bill also clarifies the role of the State Auditor as a receiver during dissolution and ensures the Public Service Commission retains authority over municipal utilities.
Key provisions
- Defines ‘chronic audit noncompliance’ as failing to submit required audits for three consecutive years.
- Authorizes the State Auditor to evaluate a municipality’s likelihood of financial recovery.
- Establishes a process for municipal dissolution if a municipality lacks a reasonable chance of recovery.
- Clarifies the duties of the State Auditor as a special receiver during dissolution.
- Specifies notice requirements for municipalities regarding audit requirements.
- Defines ‘fiscal emergency’ and ‘fiscal watch’ conditions.
- Outlines the role of a financial planning and supervision committee in municipalities experiencing a fiscal emergency.
- Confirms the Public Service Commission’s authority to regulate municipal utilities during dissolution.
Who is affected
- Municipalities in West Virginia
- The West Virginia State Auditor’s Office
- The West Virginia Public Service Commission
- County Commissions
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