Municipal Government - As enacted, specifies penalties for a municipality that fails to timely provide the comptroller of the treasury with copies of audits of the accounts and records of all departments, boards, and age, the official text

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PUBLIC CHAPTER NO. 18

                                                     SENATE BILL NO. 115

                                                             By Powers

                                             Substituted for: House Bill No. 57

                 By Moon, Wright, Rudd, McCalmon, Slater, Eldridge, Stinnett, Renea Jones

AN ACT to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 1, relative to audits of
          municipalities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 6-56-105(e}, is amended by deleting the
subsection and substituting:

                    (e)(1) All such audits must be completed and submitted to the comptroller of the
                    treasury no later than six (6) months following the end of the municipality's fiscal year.
                    The preparer of the audit shall furnish one (1) copy of each audit to the mayor, chief
                    executive officer, each member of the governing body, and the comptroller of the
                    treasury. Copies of each audit must also be made available to the press.

                              (2) A municipality having two (2) or more outstanding late annual audits is
                    subject to the following penalty:

                                        (A) Sales tax revenue collected and distributed by the state to the
                              municipality is reduced by an amount mutually agreed upon by the comptroller
                              of the treasury and the commissioner of revenue. The sales tax revenue
                              reduction must not exceed fifteen percent (15%) of the total amount due to the
                              municipality in a fiscal year, until the municipality is in compliance with this
                              section;

                                        (B) The amounts reduced as a penalty pursuant to this section are held
                              in reserve by the department of revenue and allocated to the municipality after
                              the municipality complies with this section as determined by the comptroller of
                              the treasury; and

                                        (C) The comptroller of the treasury may waive a penalty assessed in
                              accordance with this subsection (e) in accordance with policies and procedures
                              established by the comptroller.

          SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.
         SENATE BILL NO. 115

PASSED:  February 27, 2025

                                         RANDY McftALLY
                            SPEAKER OF THE StlNA TE

                            CAMl'MOWSEXTON, SPEAKER
                            HOUSE OF REPRESENTATIVES

APPROVED this [;;,:t=L day of lY) c;.YC Q,        2025

         -·~
                              BILL LEE, GOVERNOR