The bill establishes a limit on the amount of reserves that counties in Wyoming may maintain, specifically prohibiting counties from holding excess funds beyond their annual spending amount, which is defined as the average total expenditures over the previous five fiscal years, excluding specific purpose tax collections. Starting July 1, 2025, counties must calculate their annual spending amount and report any excess funds to the Department of Revenue. Additionally, counties with excess funds are required to notify residents and refund these excess amounts on a pro rata basis to property owners who have been residents for at least one year.

To enforce compliance, the bill stipulates 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. These withheld funds will be deposited into the legislative stabilization reserve account until the county certifies that it has refunded the excess funds. The act is set to take effect immediately upon completion of the necessary legislative processes.