The bill establishes a new framework for managing county reserves in Wyoming, specifically limiting the amount of reserves that counties can maintain. Under the new section W.S. 18-4-109, counties are prohibited from holding excess funds beyond their calculated annual spending amount, which is defined as the average total expenditures over the previous five fiscal years, excluding specific purpose tax revenues. Starting July 1, 2025, counties must calculate their annual spending amount, report any excess funds to the Department of Revenue, and notify residents about potential refunds.

If a county has excess funds, it is required to refund these amounts to residents who have lived in the county for at least one year, with refunds to be issued on a pro rata basis. The bill also includes provisions for penalties, stating that if a county fails to refund excess funds by the specified deadline, the state treasurer will withhold payments due to the county, equivalent to twice the amount of excess funds held. The act is set to take effect immediately upon completion of the necessary legislative processes.