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--- version:Introduced+++ version:(document, no version)@@ -1,494 +1,2 @@-UNOFFICIAL COPY 26 RS BR 1868-Page 1 of 17-XXXX 1/21/2026 11:36 AM Jacketed-AN ACT relating to the fiscal reporting of local entities. 1-Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2-Section 1. KRS 65A.030 is amended to read as follows: 3-(1) For fiscal periods beginning on or after July 1, 2014, requirements relating to audits 4-and financial statements of special purpose governmental entities are as follows: 5-(a) Every special p urpose governmental entity with the higher of annual receipts 6-from all sources or annual expenditures of less than five hundred thousand 7-dollars ($500,000)[one hundred thousand dollars ($100,000)] shall: 8-1. Annually prepare a financial statement; and 9-2. Once every four (4) years, contract for the application of an attestation 10-engagement as determined by the DLG, as provided in subsection (2) of 11-this section; 12-(b) Every special purpose governmental entity with the higher of annual receipts 13-from all sources or annual expenditures equal to or greater than five hundred 14-thousand dollars ($500,000) [one hundred thousand dollars ($100,000)] but 15-less than one million dollars($1,000,000) [five hundred thousand dollars 16-($500,000)] shall: 17-1. Annually prepare a financial statement; and 18-2. Once every four (4) years, contract for the provision of an independent 19-audit as provided in subsection (2) of this section; and 20-(c) 1. Every special purpose governmental entity with the higher of annual 21-receipts from all sources or annu al expenditures equal to or greater than 22-one million dollars ($1,000,000) [five hundred thousand dollars 23-($500,000)] shall, unless qualified for the reporting schedule under 24-subparagraph 2. of this paragraph: 25-a.[1.] Annually prepare a financial statement; and 26-b.[2.] Be audited annually as provided in subsection (2) of this section. 27-UNOFFICIAL COPY 26 RS BR 1868-Page 2 of 17-XXXX 1/21/2026 11:36 AM Jacketed-2. a. If a special purpose government entity reporting under this 1-paragraph conducts two (2) consecutive audits that include no 2-opinions other than unqualified opinions, the speci al purpose 3-governmental entity may choose to comply with the fiscal 4-reporting schedule in paragraph (b) of this subsection. If the 5-special purpose governmental entity subsequently conducts an 6-audit and receives an opinion other than an unqualified opinion 7-from the audit preparer, the special purpose governmental entity 8-shall comply with the provisions of subparagraph 1.a. and b. of 9-this paragraph until the special purpose governmental entity 10-again conducts two (2) consecutive audits with no opinions other 11-than unqualified opinions. 12-b. A special purpose governmental entity subject to this paragraph 13-shall inform the DLG if it has chosen to comply with the fiscal 14-reporting schedule as set out in paragraph (b) of this subsection. 15-The department shall note on the department's website, and in 16-any reports required under this chapter, the special purpose 17-governmental entities subject to this paragraph and operating 18-under the fiscal reporting schedule as set out in paragraph (b) of 19-this subsection. 20-(2) (a) To provide for the performance of an audit or attestation engagement as 21-provided in subsection (1)(a) to (c) of this section, the governing body of a 22-special purpose governmental entity shall employ an independent certified 23-public accountant or contract with the Audi tor of Public Accounts to conduct 24-the audit or attestation engagement unless the provisions of subsection (3) of 25-this section apply. 26-(b) The audit or attestation engagement shall be completed no later than twelve 27-UNOFFICIAL COPY 26 RS BR 1868-Page 3 of 17-XXXX 1/21/2026 11:36 AM Jacketed-(12) months following the close of the fisc al year subject to the audit or the 1-attestation engagement. 2-(c) 1. The special purpose governmental entity shall submit for publication on 3-the registry the audit or attestation engagement, in the form and format 4-required by the DLG. 5-2. A federally regulate d municipal utility may comply with the 6-requirements of this section for the public power component of its 7-operations by submitting an audit that conforms to the requirements 8-imposed by the federal agency with which it maintains a wholesale 9-power contract. 10-3. A public utility established pursuant to KRS 96.740 that is not a 11-federally regulated municipal utility may comply with the requirements 12-of this section for the public power component of its operations by 13-submitting a copy of its annual audit performed under KRS 96.840. 14-(d) 1. The audit or attestation engagement shall conform to: 15-a. Generally accepted governmental auditing or attestation standards, 16-which means those standards for audits or attestations of 17-governmental organizations, programs, activities , and functions 18-issued by the Comptroller General of the United States; 19-b. Generally accepted auditing or attestation standards, which means 20-those standards for all audits or attestations promulgated by the 21-American Institute of Certified Public Accountants; and 22-c. Additional procedures and reporting requirements as may be 23-required by the Auditor of Public Accounts. 24-2. Rather than meeting the standards established by subparagraph 1. of this 25-paragraph, the audit submitted by a federally regulated municipal u tility 26-or a public utility established pursuant to KRS 96.740 that is not a 27-UNOFFICIAL COPY 26 RS BR 1868-Page 4 of 17-XXXX 1/21/2026 11:36 AM Jacketed-federally regulated municipal utility with regard to the public power 1-component of the utility's operations shall conform to KRS 96.840 and 2-the financial standards of the Federal E nergy Regulatory Commission's 3-Uniform System of Accounts. 4-(e) Upon request, the Auditor of Public Accounts may review the final report and 5-all related work papers and documents of the independent certified public 6-accountant relating to the audit or attestation engagement. 7-(f) If a special purpose governmental entity is required by another provision of 8-law to audit its funds more frequently or more stringently than is required by 9-this section, the special purpose governmental entity shall comply with the 10-provisions of that law[,] and shall comply with the requirements of paragraph 11-(c) of this subsection. 12-(g) Notwithstanding any provision of the Kentucky Revised Statutes to the 13-contrary, a unit of government furnishing funds directly to a special purpose 14-governmental entity may require additional audits at the expense of the unit of 15-government furnishing the funds. 16-(h) All audit reports, attestation engagement reports, and financial statements of 17-special purpose governmental entities shall be public records. 18-(3) (a) Any board, commission, or agency established by statute with regulatory 19-authority or oversight responsibilities for a category of special purpose 20-governmental entities may apply to the Auditor of Public Accounts to be 21-approved to provide an alternati ve financial review of the special purpose 22-governmental entities it regulates or oversees that are required by subsection 23-(1)(a) of this section to submit an attestation engagement. The application 24-shall be in the form and format determined by the Auditor of Public Accounts. 25-(b) The Auditor of Public Accounts shall review the application and if the auditor 26-determines that the board, commission, or agency has the resources and 27-UNOFFICIAL COPY 26 RS BR 1868-Page 5 of 17-XXXX 1/21/2026 11:36 AM Jacketed-capacity to conduct an acceptable alternative financial review, the auditor 1-shall notify the DLG that the board, commission, or agency is approved to 2-provide an alternative financial review of the special purpose governmental 3-entities it regulates or oversees that are required by subsection (1)(a) of this 4-section to submit an attestation engagement. 5-(c) The Au ditor of Public Accounts shall advise the DLG and the board, 6-commission, or agency regarding modifications to the proposed alternative 7-financial review procedures necessary to obtain the Auditor of Public 8-Accounts' approval. 9-(d) Any board, commission, or a gency approved to provide alternative financial 10-reviews shall reapply to the Auditor of Public Accounts for approval to 11-continue to provide alternative financial reviews at least every four (4) years. 12-The Auditor of Public Accounts may require more frequent approvals. 13-(e) The Auditor of Public Accounts or the DLG may withdraw any approval 14-granted under this subsection if the board, commission, or agency fails to 15-conduct alternative financial reviews using the procedures and including the 16-terms and components agreed to with the DLG. 17-(f) Any board, commission, or agency approved to provide alternative financial 18-reviews shall notify the Auditor of Public Accounts and the DLG if an 19-irregularity is found in the alternative financial review. 20-(g) Any special purpose governmental entity subject to regulation or oversight by 21-a board, commission, or agency that obtains approval to provide an alternative 22-financial review under this subsection shall have the option of having an 23-alternative financial review performed by t he board, commission, or agency, 24-or may contract for the application of an attestation engagement as provided 25-in subsection (1)(a) of this section. 26-(4) The DLG shall determine which procedures conducted under attestation standards 27-UNOFFICIAL COPY 26 RS BR 1868-Page 6 of 17-XXXX 1/21/2026 11:36 AM Jacketed-will apply to special pur pose governmental entities meeting the conditions 1-established by subsection (1)(a) of this section. The DLG may determine that 2-additional procedures be conducted under attestation standards for specific 3-categories of special purpose governmental entities o r for specific special purpose 4-governmental entities, as needed, to obtain the oversight and information deemed 5-necessary by the DLG. 6-(5) Based on the information submitted by special purpose governmental entities under 7-KRS 65A.020 and 65A.090, the DLG sha ll determine when each special purpose 8-governmental entity was last audited [,] and shall notify the special purpose 9-governmental entity of when each audit or attestation engagement is due under the 10-new standards and requirements of this section. 11-(6) (a) In determining the requirements relating to audits and financial statements of 12-special purpose governmental entities under subsection (1) of this section, the 13-DLG may exclude annual receipts received by the special purpose 14-governmental entity if: 15-1. The rece ipts constitute nonrecurring, nonoperating grants for the 16-purpose of capital asset acquisition, capital construction, disaster 17-recovery efforts, or other one (1) time purposes as determined by the 18-DLG; and 19-2. The special purpose governmental entity requests, in writing to the DLG 20-and for each fiscal year it receives the revenue in question, that the 21-revenues in question not be included in determining its annual revenues. 22-(b) In determining the requirements relating to audits and financial statements 23-under subsection (1) of this section of special purpose governmental entities 24-that are public use airports operating under KRS 183.132 to 183.160, the DLG 25-may exclude annual receipts received by those public use airports if the 26-receipts constitute nonoperating or recurring grants for the purpose of capital 27-UNOFFICIAL COPY 26 RS BR 1868-Page 7 of 17-XXXX 1/21/2026 11:36 AM Jacketed-asset acquisition, capital construction, disaster recovery efforts, or other one 1-(1) time purposes as determined by the DLG. 2-(c) Any receipts excluded under paragraph (a) or (b) of this subsection shall still 3-be reported as required under KRS 65A.020(2)(a)2. 4-(7) The DLG may promulgate administrative regulations pursuant to KRS Chapter 13A 5-to implement the provisions of this section. 6-Section 2. KRS 147.635 is amended to read as follows: 7-(1) An area planning commission created under the provisions of KRS 147.610 to 8-147.705 shall, not later than two (2) months prior to the first day of its fiscal year, 9-submit a proposed budget detailing anticipated revenues and expenditures, and a 10-proposed tax rate, to the area council for its approval on or before the first day of 11-each such fiscal year. 12-(2) The area council shall contract with an independent, reputable certified public 13-accountant to perform an audit of the records, books, and accou nts of the area 14-planning commission in compliance with Section 1 of this Act [for each fiscal 15-year]. 16-(3) The area planning commission and area council shall comply with the provisions of 17-KRS 65A.010 to 65A.090. 18-Section 3. KRS 220.280 is amended to read as follows: 19-(1) The powers of the board of directors shall be limited to the construction, 20-maintenance, and operation of such works as are necessary to carry out the purposes 21-of the district in improvement of sanitation, as set forth in KRS 220.030. The board 22-shall not permit house and users' connections at the cost of the district, and every 23-connection shall be made under the supervision of the district. No house or users' 24-connection shall be made unless and until the house or user is provided with an 25-adequate water supply. 26-(2) In order to effect the proper collection and disposal of sewage and other liquid 27-UNOFFICIAL COPY 26 RS BR 1868-Page 8 of 17-XXXX 1/21/2026 11:36 AM Jacketed-wastes produced within the district, to promote the public health, comfort, 1-convenience and welfare, and to accomplish a ll other purposes of the district, the 2-board may clean out, straighten, alter, deepen , or otherwise improve any stream, 3-watercourse, or body of water receiving sewage or other liquid wastes and located 4-in or out of the district; fill up any abandoned or al tered stream, watercourse , or 5-body of water located in or out of the district; construct and maintain laterals, trunk 6-sewers, intercepting sewers, siphons, pumping stations, treatment and disposal 7-works, and improvements deemed necessary to accomplish the purposes of the 8-district and construct, preserve, operate , or maintain such works in or out of the 9-district; construct connections to the works of the district for the delivery thereto of 10-sewage and other liquid wastes; incorporate with the works of the di strict or 11-otherwise utilize any public sewers, drains , or other sewerage improvements either 12-without modifications or with repairs, modifications , or changes deemed necessary; 13-construct any and all of the works and improvements across or through any public 14-or private property in or out of the district; hold, encumber, control, acquire by 15-donation, purchase, or condemnation, and construct, own, lease, use and sell, any 16-real or personal property, or any easement necessary for rights -of-way or locations 17-for the works and improvements of the district, or for any necessary purpose, or for 18-obtaining or storing mat erial to be used in constructing and maintaining the works 19-and improvements. 20-(3) KRS 220.010 to 220.540 shall not limit or interfere with the right of public 21-corporations to install, maintain , and operate sewerage systems as otherwise 22-permitted by law, but the board of directors shall have full power and authority in 23-the construction and maintenance of improvements for the purposes of the district 24-to serve the area included within the district, and the board of directors may require 25-the use of the improveme nts of the district by persons and public corporations 26-included within the district and for which the improvements were installed. 27-UNOFFICIAL COPY 26 RS BR 1868-Page 9 of 17-XXXX 1/21/2026 11:36 AM Jacketed-(4) The board of directors shall have an [annual ] audit made by a certified public 1-accountant in compliance with Section 1 of this Act, copies of which shall be filed 2-with the Secretary of State and with the county judge/executive of the county or 3-counties in which the sanitation district is located. 4-Section 4. KRS 43.070 is amended to read as follows: 5-(1) (a) To determine whether any unauthorized, illegal, irregular, or unsafe handling 6-or expenditure of revenue or other improper practice of financial 7-administration has occurred and to assure that all proper items have been duly 8-charged, taxed, and reported, the Auditor shall audit annually: 9-1. The funds contained in each county's budget;[ and] 10-2. The books, accounts, and papers of all county clerks and sheriffs , which 11-includes receipts paid to county clerks from the collection of: 12-a. Motor vehicle and motorboat registration fees, motor vehicle and 13-motorboat licenses, and other receipts due the clerk pertaining to 14-motor vehicles and motorboats as provided in KRS Chapters 186, 15-186A, and 235; 16-b. The motor vehicle usage tax as provided in KRS 138.460; and 17-c. The ad valorem tax on motor vehicles and motorboats as 18-provided in KRS 134.800; 19- County clerks shall transmit a copy of the portion of the audit relating to the 20-receipts set out in subparagraph 2.a. to c. of this paragraph to the 21-Department of Revenue and the Kentucky Transportation Cabinet. 22-(b) The Auditor shall not conduct an audit pursuant to this subsection if the fiscal 23-court or the elected official notifies the Auditor that a certified public 24-accountant has been employed to audit the books, accounts, and papers of the 25-county or the fee office, in accordance with KRS 64.810. 26-(c) 1. If any county clerk or sheriff meets the criteria established in this 27-UNOFFICIAL COPY 26 RS BR 1868-Page 10 of 17-XXXX 1/21/2026 11:36 AM Jacketed-subsection and any additional criteria established in administrative 1-regulations promulgated by the Auditor, that county clerk's or sheriff's 2-audit required by this section may, in the discretion of the Auditor, be 3-conducted by an agreed -upon procedures engagement performed by the 4-Auditor. If, in the discretion of the Auditor, an agreed -upon procedures 5-engagement in progress will not provide sufficient oversight of the 6-county clerk's or sheriff's office, the Auditor may at any time convert the 7-engagement to an audit performed under paragraph (a)2. of this 8-subsection. A county clerk or sheriff shall not be eligible for the agreed -9-upon procedures engagement as allowed in this paragraph for the first 10-audit period after election if the county clerk or sheriff is serving in 11-office for the first time, or is assuming the office after experiencing a 12-break in sequential service in that position. 13-2. The Auditor and the county clerk or sheriff shall establish specific 14-procedures for any agreed -upon procedures engagement. If the Auditor 15-and the county clerk or sheriff cannot agree to the specific procedures 16-for an agreed -upon procedures engagement, the audit of the county 17-clerk's or sheriff's office shall be conducted under paragraph (a)2. of this 18-subsection for that year subject to the audit. 19-3. At a minimum, the county clerk or sheriff shall meet the following 20-criteria in order to be eligible to have the county clerk's or sheriff's 21-annual audit in any particular year conducted using agreed -upon 22-procedures: 23-a. The county clerk or sheriff applies to the Auditor to have an 24-agreed-upon procedures engagement for the year subject to the 25-audit on a form provided by the Auditor and by the application 26-deadline established by the Auditor; 27-UNOFFICIAL COPY 26 RS BR 1868-Page 11 of 17-XXXX 1/21/2026 11:36 AM Jacketed-b. The county clerk's or sheriff's office did not ha ve any reported 1-audit comment or finding in its most recent audit report; 2-c. The county clerk or sheriff and the Auditor agree to specific 3-procedures for the agreed-upon procedures engagement; and 4-d. Any additional criteria that may be determined by the Auditor. 5-4. The publication requirements related to an agreed -upon procedures 6-engagement shall be the same as those required for audits of the county 7-clerks and sheriffs performed under paragraph (a)2. of this subsection, 8-except that the Auditor may provide a summary of the agreed -upon 9-procedures engagement report, and publication of the summary shall 10-satisfy the statutory requirements to publish the audit report, opinion 11-letter, and transmittal letter. 12-5. The billing and expense provisions of subsection (3) of this section shall 13-apply to any agreed -upon procedures engagement performed under this 14-section. 15-6. The Auditor may promulgate administrative regulations that set forth 16-additional criteria to qualify for agreed -upon procedures engagements, 17-the applicatio n procedures, and the standards, procedures, guidelines, 18-and reporting requirements for agreed -upon procedures engagements 19-under this section. 20-7. In exercising discretion regarding whether a county clerk or sheriff who 21-otherwise meets the minimum requireme nts may have an agreed -upon 22-procedures engagement in lieu of an audit for any particular year subject 23-to an engagement, and in exercising discretion regarding the proposed 24-procedures for the agreed -upon procedures engagement for any 25-particular year subject to an audit, the Auditor may consider factors 26-including but not limited to past audit comments or agreed -upon 27-UNOFFICIAL COPY 26 RS BR 1868-Page 12 of 17-XXXX 1/21/2026 11:36 AM Jacketed-procedures engagement findings, assessment of risks, complaints, 1-financial statements, the number of consecutive agreed -upon procedures 2-engagements performed of the county clerk or sheriff, and other factors 3-relevant to oversight of the county clerk's or sheriff's office. 4-(2) The Auditor may audit: 5-(a) The books, accounts and papers of all county judges/executive, county 6-attorneys, coroners and constables; and 7-(b) The books, accounts, papers, and performance of all special purpose 8-governmental entities as defined in KRS 65A.010. The expense of any audit 9-or examination performed pursuant to this paragraph shall be borne by the 10-entity audited or examined. 11-(3) (a) The county shall bear one -half (1/2) of the actual expense of the audit 12-conducted pursuant to subsection (1)(a)1. of this section and shall bear the 13-total actual expense of the audit conducted pursuant to subsections (1)(a)2. 14-and (2)(a) of thi s section. No county shall be required to bear the expense for 15-more than one (1) audit of the same fund or office annually pursuant to 16-subsection (1)(a)1. or 2. of this section, except as provided in KRS 64.810(4). 17-(b) The Kentucky Transportation Cabinet s hall bear the cost of the portion of 18-the audit of receipts from motor vehicles and motorboats required in 19-subsection (1)(a)2. of this section, regardless of whether the Auditor 20-prepared the audit required under this section or the county made other 21-arrangements for the audit under subsection (1)(b) of this section and KRS 22-64.810. 23-(4) Within a reasonable time after the completion and distribution of the audit reports 24-authorized by subsection (1) of this section, the Auditor of Public Accounts shall 25-bill the county for the expenses incurred pursuant to subsection (3) of this section. 26-A copy of this bill shall be forwarded to the secretary of the Finance and 27-UNOFFICIAL COPY 26 RS BR 1868-Page 13 of 17-XXXX 1/21/2026 11:36 AM Jacketed-Administration Cabinet. Should the fiscal court within sixty (60) days following 1-receipt of said bill de termine the charge to be excessive or otherwise improper it 2-shall submit its objection to the secretary of the Finance and Administration Cabinet 3-and to the State Treasurer for resolution of the controversy in accordance with 4-subsection (5) of this section . If the amount billed has not been paid within sixty 5-(60) days from date of billing, and no objection has been filed, the Auditor shall 6-notify the secretary of the Finance and Administration Cabinet and the secretary of 7-revenue who shall cause said amount to be deducted from the next payment or 8-return of moneys provided by KRS 47.110 by the state to the county or counties. 9-Deductions shall continue until the total amount due the Auditor's office has been 10-paid. All moneys received pursuant to this section s hall be credited to the trust and 11-agency account of the Auditor of Public Accounts. When an objection to the bill 12-has been filed with the secretary of the Finance and Administration Cabinet and the 13-State Treasurer in accordance with subsection (5) of this section the amount found 14-to be equitable and just shall become payable immediately upon the entry of the 15-final decision. 16-(5) Any controversy over the amount of the bill for the actual expenses incurred shall 17-be submitted by the fiscal court to the secretary of the Finance and Administration 18-Cabinet and the State Treasurer for a decision as to the proper amount. In the event 19-that these two (2) arbitrators fail to agree, then the controversy shall be submitted to 20-the Attorney General, whose decision shall be final. 21-Section 5. KRS 186.240 is amended to read as follows: 22-(1) It shall be the duty of the cabinet to carry out the provisions of KRS 186.005 to 23-186.260, and: 24-(a) Provide to the clerk in each county access to all forms provided for in KRS 25-186.005 to 186.260; 26-(b) Keep a numerical record of all registration numbers issued in the state and 27-UNOFFICIAL COPY 26 RS BR 1868-Page 14 of 17-XXXX 1/21/2026 11:36 AM Jacketed-also keep a record of motor or vehicle identification numbers required by 1-KRS 186.160; 2-(c) Furnish to each clerk, originally each year upon estimate, and thereafter upon 3-requisition at all times, a sufficient supply of standard, noncommercial plates 4-and the supplies necessary to provide evidence of registration for all classes of 5-vehicles required to be registered; and 6-(d) Prescribe a standard plate of practical form and size for police identification 7-purposes that shall contain: 8-1. The registration identifier; 9-2. An indication that Kentucky is the issuing jurisdiction; 10-3. At the discretion of the cabinet, any combination of the following 11-phrases: 12-a. "Bluegrass State"; or 13-b. "United We Stand, Divided We Fall"; 14-4. For standard plates for noncommercial vehicles: 15-a. The county in which the plate is issued; and 16-b. At the discretion of the person to whom the vehicle is registered, 17-the phrase "In God We Trust"; and 18-5. For plates for commercial vehicles, the year the license expires and 19-words or information the Departme nt of Vehicle Regulation may 20-prescribe by administrative regulation, pursuant to KRS Chapter 13A. 21-(2) Except as provided in KRS 186A.127, license plates issued pursuant to this chapter 22-shall conform to the provisions of subsection (1)(c) and (d) of this se ction. The 23-Transportation Cabinet shall provide for the issuance of reflectorized plates for all 24-motor vehicles, and shall collect a fee, in addition to the fee set out in KRS Chapter 25-186 and KRS 281.631, of fifty cents ($0.50). The fifty cents ($0.50) fee to 26-reflectorize license plates shall be used by the cabinet as provided in subsection (3) 27-UNOFFICIAL COPY 26 RS BR 1868-Page 15 of 17-XXXX 1/21/2026 11:36 AM Jacketed-of this section. 1-(3) The reflectorized license plate program fund is established in the state road fund 2-and appropriated on a continual basis to the cabinet to admin ister the moneys as 3-provided in this subsection. The fifty cents ($0.50) fee collected by the cabinet to 4-reflectorize license plates shall be deposited into the program fund and used to issue 5-reflectorized license plates. If at the end of a fiscal year, mo ney remains in the 6-program fund, it shall be retained in the fund and shall not revert to the state road 7-fund. The interest and income earned on money in the program fund shall also be 8-retained in the program fund to carry out the provisions of this subsec tion. The 9-Transportation Cabinet shall issue reflectorized license plates under the provisions 10-of this subsection on a schedule to be determined at the discretion of the cabinet. 11-(4) Except as directed under subsection (3) of this section, the Transportati on Cabinet 12-shall receive all moneys forwarded by the clerk in each county and turn it over to 13-the State Treasurer for the benefit of the state road fund. 14-(5) The Transportation Cabinet shall require an accounting by the clerk in each county 15-for any moneys received by him or her under the provisions of this chapter, after the 16-deduction of his or her fees under this chapter, and for all receipts, forms, plates, 17-and insignia consigned to him or her. The Auditor of Public Accounts, pursuant to 18-Section 4 of this Act[KRS 43.071] , or a certified public accountant acting on 19-behalf of the county pursuant to subsection (1)(b) of Section 4 of this Act, shall 20-annually audit each county clerk concerning his or her responsibilities for the 21-collection of various fees and taxes associated with motor vehicles. The secretary of 22-the Transportation Cabinet, with the advice, consultation, and approval of the 23-Auditor, shall develop and implement an inventory and accounting system which 24-shall insure that the audits mandated in Section 4 of this Act [KRS 43.071] are 25-performed in accordance with generally accepted auditing standards. The 26-Transportation Cabinet shall pay for the portion of the audit mandated by 27-UNOFFICIAL COPY 26 RS BR 1868-Page 16 of 17-XXXX 1/21/2026 11:36 AM Jacketed-subsection (1)(a)2. of Section 4 of this Act[ audits mandated by KRS 43.071]. 1-(6) When applied for under KRS 186.060 or 186.061, motor or vehicle numbers 2-assigned shall be distinctive to show that they were designated by the cabinet. 3-Section 6. KRS 64.830 is amended to read as follows: 4-(1) An outgoing county official, as soon as his or her successor has been qualified and 5-inducted into office and his or her official bond approved, shall immediately vacate 6-his or her office, deliver to his or her successor all books, papers, records , and 7-other property held by virtue of his or her office, and make a complete settlement 8-of his or her accounts as county official, except as otherwise provided in this 9-section. 10-(2) (a) Each outgoing county official shall make a final settlement with the fiscal 11-court of his or her county within sixty (60) days [ by March 15] immediately 12-following the expiration of his or her term of office, or the date a vacancy is 13-otherwise created, for all money received by him or her as county official and 14-to obtain his or her quietus, and immediately thereafter he or she shall deliver 15-these records to the incumbent county official. 16-(b) If an official's vacancy does not coincide with the end of the calendar year 17-or end of the official 's term, the outgoing county official shall remit any 18-remaining funds to the fiscal court as excess fees as determined by the final 19-settlement pursuant to subsection (2)(a) of this section. The fiscal court 20-shall, as soon as practicable, provide an amount equal to the excess fees 21-remitted by the outgoing official to the outgoing county official's successor 22-for official use. 23-(3) The outgoing county official and his or her bondsmen or sureties shall be relieved 24-in securing his or her quietus and in the final settlement of his or her accounts of 25-all responsibility for collecting and accounting for the amounts covered by the 26-receipt and the incoming county official shall be charged with full responsibility for 27-UNOFFICIAL COPY 26 RS BR 1868-Page 17 of 17-XXXX 1/21/2026 11:36 AM Jacketed-collecting and accounting for these amounts as otherwise provided by law for the 1-collection and accounting of taxes. 2-(4) The outgoing county official shall be allowed and paid by the fiscal court the 3-reasonable expenses actually incurred in preparing the receipt required under this 4-section. Reasonable expenses actually incurred may include his or her office 5-expenses and salary, and salaries of deputies and employees paid in accordance 6-with the schedule of the previous yea r or the amount paid an auditor necessary in 7-determining and verifying the final settlement to the fiscal court. 8-Section 7. The following KRS section is repealed: 9-43.071 Annual audit of county clerk's motor vehicle and motorboat tax receipts. 10-Section 8. Sections 1, 2, and 3 of this Act take effect July 1, 2027. 11+The Local Mandate Statement is being prepared. When the statement is available, this link will+be updated.
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