The proposed legislation, titled the "Public Finance Accountability Act," aims to enhance the management and oversight of state funding through the establishment of specific funding criteria and grant management requirements. The Department of Finance and Administration is tasked with defining eligibility criteria for grantees seeking capital outlay appropriations or special purpose appropriations. Key requirements include the completion of an annual audit, the preparation of actionable plans to address any identified deficiencies, and compliance with financial reporting requirements. Additionally, the department must ensure that state agencies adhere to these criteria before certifying bond issuances or making grants.

Furthermore, the act mandates the development of grant management and oversight requirements, which include ensuring compliance with laws regarding the sale or lease of capital assets acquired through appropriations, utilizing standardized grant agreement templates, and conducting field audits of capital outlay projects. The department is also responsible for creating procedures and policies to implement these requirements and for monitoring compliance among state agencies. The provisions of this act are set to take effect on July 1, 2025.