House Bill 57 amends Tennessee Code Annotated, specifically Section 6-56-105(e), to establish new requirements and penalties regarding the audits of municipalities. The bill mandates that all audits must be completed and submitted to the comptroller of the treasury within six months after the end of the municipality's fiscal year. Additionally, the audit preparer is required to provide copies of the audit to the mayor, chief executive officer, governing body members, and the comptroller, while also ensuring that copies are accessible to the press.

The bill introduces penalties for municipalities that have two or more outstanding late annual audits. Specifically, it allows for a reduction in sales tax revenue distributed to the municipality, capped at 15% of the total amount due in a fiscal year, until compliance is achieved. The amounts withheld as penalties will be held in reserve and allocated back to the municipality once compliance is confirmed by the comptroller. Furthermore, the comptroller has the authority to waive penalties based on established policies and procedures. This act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 6-56-105(e), 6-56-105