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Bill > SB133

KY SB133

KY SB133
AN ACT relating to the fiscal reporting of local entities.

summary

Introduced
01/28/2026
In Committee
03/04/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Amend KRS 65A.030 to increase the fiscal reporting levels of special purpose governmental entities; allow entities conducting yearly audits to move to an audit every 4 years if the entity receives 2 sequential audit reports with unqualified opinions and report the fact that the entity is operating under the alternative audit schedule to the Department for Local Government; require an entity to have yearly audits if the entity receives anything but an unqualified audit opinion at a subsequent audit; amend KRS 147.635, relating to area planning commissions, to align their audit requirements to those in KRS 65A.030; amend KRS 220.280, relating to sanitation districts, to align their audit requirements to those in KRS 65A.030; amend KRS 43.070 and 186.240 to combine the county clerks' independent audits of motor vehicle and motorboat registration fees and licenses, motor vehicle usage taxes, and ad valorem taxes on motor vehicles and motorboats into the county clerks' regular periodic audit; require the Kentucky Transportation Cabinet to bear the cost of the portion of the audit attributed to receipts from motor vehicles and motorboats; amend KRS 64.830, relating to final settlements of outgoing county officials, to make the settlement to be complete within 60 days of the expiration of the term of office or the date a vacancy is otherwise created to account for unexpected vacancies in office; require that if an official's vacancy does not coincide with the end of the calendar year or end of the official's term, the outgoing county official is to remit any remaining funds to the fiscal court as excess fees and require the fiscal court to provide an amount equal to the excess fees remitted by the outgoing official to the outgoing county official's successor for official use; repeal KRS 43.071, relating to the annual audit of county clerk's motor vehicle and motorboat tax receipts; EFFECTIVE, in part, July 1, 2027.

AI Summary

This bill modifies fiscal reporting requirements for various local entities in Kentucky, primarily by adjusting audit frequency and scope, and standardizing procedures for outgoing county officials. For special purpose governmental entities (entities created for specific public services with independent authority to generate or expend public funds), the bill increases the financial thresholds that trigger more frequent or stringent audits, allowing entities with consistently clean audit reports (unqualified opinions) to move from annual audits to audits every four years, provided they notify the Department for Local Government (DLG). It also introduces an "agreed-upon procedures engagement" as an alternative to a full audit for certain entities under specific conditions, which involves a more focused review of financial matters. The bill also aligns audit requirements for area planning commissions and sanitation districts with these new provisions, and consolidates the independent audits of county clerks' motor vehicle and motorboat registration fees, usage taxes, and ad valorem taxes into their regular audits, with the Kentucky Transportation Cabinet covering the cost of the portion related to motor vehicle and motorboat receipts. Finally, it revises the process for final settlements of outgoing county officials, requiring them to be completed within 60 days of a vacancy and outlining how excess fees should be handled and transferred to their successors.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

3rd reading, passed 38-0 with Committee Substitute (1) (on 03/10/2026)

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