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 stipulates 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, their payments under this 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 within a specified timeframe, and 25% of their payments may be withheld until this plan is certified by the Department of Treasury.

Furthermore, the bill introduces a new provision that, starting from fiscal year 2025, if a local government enacts or enforces any law or policy that violates the local government sanctuary policy prohibition act or the county law enforcement protection act, the state treasurer is required to withhold any payments due to that local government until the violation is resolved. The definition of "deficit condition" is also clarified to specify that it refers to a situation where total expenditures exceed total revenues at the end of a fiscal year.

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