summary
Introduced
01/29/2026
01/29/2026
In Committee
02/05/2026
02/05/2026
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 government entities in Kentucky, generally aiming to increase reporting thresholds and adjust audit frequencies. For special purpose governmental entities (SPGEs), which are governmental organizations created for a specific purpose, the bill raises the financial thresholds that trigger annual 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). However, if an SPGE receives an audit opinion other than unqualified, it must resume annual audits. The bill also aligns audit requirements for area planning commissions and sanitation districts with these updated SPGE rules. Additionally, it consolidates independent audits for county clerks related to motor vehicle and motorboat fees, 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, the bill streamlines the final settlement process for outgoing county officials, requiring it to be completed within 60 days of their term ending or a vacancy occurring, and establishes a process for handling excess fees in cases of unexpected vacancies.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
to Local Government (H) (on 02/05/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/hb520.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb520/orig_bill.pdf |
| Local Mandate Fiscal Impact | https://apps.legislature.ky.gov/recorddocuments/note/26RS/hb520/LM.pdf |
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