This bill aims to address the issue of municipalities in West Virginia that have failed to complete required financial audits for multiple years. It proposes amendments to existing laws and introduces new sections that define "chronic audit noncompliance" and establish conditions for declaring a fiscal emergency. The State Auditor is granted the authority to evaluate a municipality's likelihood of financial recovery and to initiate dissolution proceedings if a municipality is deemed unlikely to recover after a supervision period. Additionally, the bill mandates that the State Auditor provide written notice to municipalities regarding the consequences of chronic audit noncompliance.

The bill also clarifies the duties of the State Auditor when acting as a special receiver for dissolved municipalities, including the management of assets and the initiation of bankruptcy proceedings. It specifies that the dissolution of a municipality does not affect the authority of the West Virginia Public Service Commission to regulate utility systems, ensuring that such systems are addressed through existing legal frameworks. Overall, the legislation seeks to enhance financial accountability and provide a structured process for municipalities facing severe fiscal challenges.

Statutes affected:
Introduced Version: 6-9D-12a, 6-9D-12b, 8-35-7