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OK HB3463

OK HB3463
Cities and towns; annual audit; agreed-upon-procedures; State Auditor and Inspector; Oklahoma Tax Commission; revolving fund; effective date; emergency.


summary

Introduced
02/02/2026
In Committee
02/24/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

An Act relating to cities and towns; amending 11 O.S. 2021, Section 17-105, as last amended by Section 1, Chapter 287, O.S.L. 2024 (11 O.S. Supp. 2025, Section 17-105), which relates to annual audits of municipalities; requiring submission of annual financial statement audit by certain municipalities; permitting agreed-upon-procedures engagement; requiring copies be filed with State Auditor and Inspector six months after the close of the fiscal year; amending 11 O.S. 2021, Section 17-107, as amended by Section 3, Chapter 254, O.S.L. 2022 (11 O.S. Supp. 2025, Section 17-107), which relates to failure of municipalities to file audit or agreed- upon-procedures report; modifying period of withholding funds; clarifying citation; clarifying passage of House bill made section effectively not repealed; directing the Oklahoma Tax Commission to release certain funds; clarifying timeline for release of funds by the Oklahoma Tax Commission; providing for noncodification; providing an effective date; and declaring an emergency.

AI Summary

This bill modifies existing laws concerning annual financial reporting for cities and towns in Oklahoma. It requires municipalities with $50,000 or more in total revenue to submit an annual financial statement audit or an "agreed-upon-procedures" engagement, which is a less comprehensive review of specific financial activities, within six months of their fiscal year's close to the State Auditor and Inspector. Previously, some smaller municipalities were only required to undergo a biennial audit, and the deadline for filing was longer. The bill also clarifies that if a municipality fails to file its required report, the Oklahoma Tax Commission will withhold state funds, and if the report remains unfiled for an extended period, these withheld funds will be directed to the State Auditor and Inspector's Special Investigative Unit Auditing Revolving Fund. Additionally, the bill directs the Oklahoma Tax Commission to release certain previously withheld funds related to past audit requirements and sets an effective date of July 1, 2026, declaring an emergency for immediate implementation.

Committee Categories

Government Affairs

Sponsors (2)

Last Action

Authored by Senator Daniels (principal Senate author) (on 02/24/2026)

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