The bill amends the Glenn Steil State Revenue Sharing Act of 1971 by updating the requirements for local governments regarding financial reporting and audits. It specifies that if a city, village, township, or county fails to provide an annual financial report or audit that meets the standards set by the state treasurer, payments under the act may be withheld until compliance is achieved. Additionally, if a local government ends its fiscal year in a deficit, it must file a financial plan to address the deficit, and 25% of its payments may be withheld until this plan is certified by the department of treasury.

Furthermore, the bill introduces new provisions that will take effect for fiscal years beginning on or after October 1, 2025. It states that if a local government enacts or enforces any law, ordinance, policy, or rule that violates the local government sanctuary policy prohibition act or the county law enforcement protection act, the state treasurer will withhold any payments due to that local government until the violation is resolved. The bill also clarifies the definition of "deficit condition" for the purposes of this section.

Statutes affected:
House Introduced Bill: 141.921
As Passed by the House: 141.921