Maryland 2025 Regular Session

Maryland Senate Bill SB962 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		sb0962
9	6
10	7		SENATE BILL 962
11	8		L3 5lr2985
12	9
13	10		By: Senator Mautz
14	11		Introduced and read first time: January 28, 2025
15	12		Assigned to: Budget and Taxation
16		-	Committee Report: Favorable with amendments
17		-	Senate action: Adopted
18		-	Read second time: February 28, 2025
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Municipalities – Legislative Audit – Exemption 2
25	19
26	20		FOR the purpose of exempting a municipality with annual revenues below a certain amount 3
27	21		from a certain audit requirement; clarifying that a certain audit exemption does not 4
28	22		affect certain financial reporting requirements; authorizing the Joint Audit and 5
29	23		Evaluation Committee to request or require a certain review or audit of the financial 6
30	24		records of a certain municipality under certain circumstances; and generally relating 7
31	25		to audits of the financial records of municipalities. 8
32	26
33	27		BY repealing and reenacting, with amendments, 9
34	28		Article – Local Government 10
35	29		Section 16–305 11
36	30		Annotated Code of Maryland 12
37	31		(2013 Volume and 2024 Supplement) 13
38	32
39	33		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
40	34		That the Laws of Maryland read as follows: 15
41	35
42	36		Article – Local Government 16
43	37
44	38		16–305. 17
45	39
46	40		(a) Except as provided in subsection (b) of this section, each county, municipality, 18
47		-	and special taxing district created by the State shall have its financial records audited at 19 2 SENATE BILL 962
	41	+	and special taxing district created by the State shall have its financial records audited at 19
	42	+	least once each fiscal year by the persons and for the purposes specified in this section and 20
	43	+	§§ 16–307 and 16–308 of this subtitle. 21
	44	+
	45	+	(b) (1) Unless the Legislative Auditor determines, on a case–by–case basis, 22
	46	+	that more frequent audits are required, the Legislative Auditor may authorize a 23 2 SENATE BILL 962
48	47
49	48
50		-	~~least once each fiscal year~~ by the ~~persons and for the purposes specified in this section and~~ 1
51		-	~~§§ 16–307 and 16–308 of this subtitle~~. 2
	49	+	municipality or a special taxing district created by the State with annual revenues of less 1
	50	+	than $250,000 in the prior 4 fiscal years to have an audit conducted once every 4 years. 2
52	51
53		-	(b) (1) ~~Unless the Legislative Auditor determines~~, on a ~~case–by–case basis,~~ 3
54		-	~~that more frequent audits are required,~~ the ~~Legislative Auditor may authorize~~ a 4
55		-	~~municipality or a special taxing district created by~~ the ~~State with~~ annual revenues ~~of less~~ 5
56		-	than $~~250~~,000 ~~in the prior 4 fiscal years to have an audit conducted once every 4 years~~. 6
	52	+	(2) NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBSECTION , A 3
	53	+	MUNICIPALITY IS EXEM PT FROM THE AUDIT RE QUIREMENTS OF SUBSEC TION (A) OF 4
	54	+	THIS SECTION FOR ANY FISCAL YEAR IN WHICH THE MUNICIPAL ANNUAL REVENUES 5
	55	+	ARE LESS THAN $100,000. 6
57	56
58		-	(2) NOTWITHSTANDING PARAG RAPH (1) OF THIS SUBSECTION AND 7
59		-	EXCEPT AS PROVIDED I N SUBSECTION (E) OF THIS SECTION , A MUNICIPALITY IS 8
60		-	EXEMPT FROM THE AUDI T REQUIREMENTS OF SU BSECTION (A) OF THIS SECTION 9
61		-	FOR ANY FISCAL YEAR IN WHICH THE MUNICIP AL ANNUAL REVENUES A RE LESS 10
62		-	THAN $100,000. 11
	57	+	(c) (1) The audit required under subsection (a) of this section shall be 7
	58	+	conducted by a certified public accountant: 8
63	59
64		-	(c) ~~(1)~~ The ~~audit required under subsection (a)~~ of ~~this section shall be 12~~
65		-	~~conducted by~~ a ~~certified public accountant:~~ 13
	60	+	(i) acting in the capacity of an independent auditor or an official 9
	61	+	auditor of a county or municipality; and 10
66	62
67		-	(i) acting in the capacity of an independent auditor or an official 14
68		-	auditor of a county or municipality; and 15
	63	+	(ii) who is in compliance with the Maryland Public Accountancy Act. 11
69	64
70		-	(ii) who is in compliance with the Maryland Public Accountancy Act. 16
	65	+	(2) An official auditor must be approved by the Legislative Auditor to 12
	66	+	conduct the audit. 13
71	67
72		-	(2) An official auditor must be approved by the Legislative Auditor to 17
73		-	conduct the audit. 18
	68	+	(3) In conducting the audit, the auditor shall examine the methods, 14
	69	+	accuracy, and legality of the financial records of the county, municipality, or special taxing 15
	70	+	district. 16
74	71
75		-	(3) ~~In conducting~~ the ~~audit~~, the auditor ~~shall examine the methods, 19~~
76		-	~~accuracy, and legality of~~ the financial records of ~~the~~ county, municipality, or special taxing 20
77		-	~~district~~. 21
	72	+	(d) (1) On the initiative of the Legislative Auditor, the Legislative Auditor may 17
	73	+	review or audit the financial records of any county, municipality, or special taxing district 18
	74	+	created by the State. 19
78	75
79		-	(d) (1) On the initiative of the Legislative Auditor, the Legislative Auditor may 22
80		-	review or audit the financial records of any county, municipality, or special taxing district 23
81		-	created by the State. 24
	76	+	(2) A county, municipality, or special taxing district created by the State 20
	77	+	may request the Legislative Auditor to audit its financial records. 21
82	78
83		-	(2) A county, municipality, or special taxing district created by the State 25
84		-	may request the Legislative Auditor to audit its financial records. 26
	79	+	(E) (1) AN AUDIT EXEMPTION FO R A MUNICIPALITY UND ER SUBSECTION 22
	80	+	(B)(2) OF THIS SECTION DOES NOT AFFECT THE REQUI REMENT OF THAT 23
	81	+	MUNICIPALITY TO FILE WITH THE DEPARTMEN T OF LEGISLATIVE SERVICES A 24
	82	+	FINANCIAL REPORT IN ACCORDANCE WITH § 16–304 OF THIS SUBTITLE. 25
85	83
86		-	(E) (1) AN AUDIT EXEMPTION FO R A MUNICIPALITY UND ER SUBSECTION 27
87		-	(B)(2) OF THIS SECTION DOES NOT AFFECT THE REQUI REMENT OF THAT 28
88		-	MUNICIPALITY TO FILE WITH THE DEPARTMENT OF LEGISLATIVE SERVICES A 29
89		-	FINANCIAL REPORT IN ACCORDANCE WITH § 16–304 OF THIS SUBTITL E. 30
	84	+	(2) IF THE FINANCIAL REPO RT SUBMITTED IN ACCO RDANCE WITH § 26
	85	+	16–304 OF THIS SUBTITLE BY A MUNICIPALITY THAT HAS AN AUDIT EXEMPTI ON 27
	86	+	UNDER SUBSECTION (B)(2) OF THIS S ECTION INDICATES A F INANCIAL OR 28
	87	+	ACCOUNTING IRREGULAR ITY OR CONCERN , THE JOINT AUDIT AND EVALUATION 29
	88	+	COMMITTEE MAY REQUEST OR REQUIRE A REVIEW OR AUDIT OF THE FINA NCIAL 30
	89	+	RECORDS OF THAT MUNI CIPALITY. 31
90	90
91		-	(2) IF THE FINANCIAL REPO RT SUBMITTED IN ACCO RDANCE WITH § 31
92		-	16–304 OF THIS SUBTITLE BY A MUNICIPALITY THAT HAS AN AUDIT EXEMPTI ON 32
93		-	UNDER SUBSECTION (B)(2) OF THIS SECTION INDI CATES A FINANCIAL OR 33
94		-	ACCOUNTING IRREGULAR ITY OR CONCERN , THE JOINT AUDIT AND EVALUATION 34
95		-	COMMITTEE MAY REQUEST OR REQUIRE A REVIEW OR AUDIT OF THE FINANCIAL 35 SENATE BILL 962 3
96		-
97		-
98		-	RECORDS OF THAT MUNI CIPALITY THE MUNICIPALITY TO CONDUCT A REVIEW OR 1
99		-	AUDIT OF ITS FINANCI AL RECORDS CONSISTEN T WITH THE REQUIREME NTS OF 2
100		-	SUBSECTION (C) OF THIS SECTION. 3
101		-
102		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 4
103		-	1, 2025. 5
104		-
105		-
106		-
107		-
108		-	Approved:
109		-	________________________________________________________________________________
110		-	Governor.
111		-	________________________________________________________________________________
112		-	President of the Senate.
113		-	________________________________________________________________________________
114		-	Speaker of the House of Delegates.
	91	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 32
	92	+	1, 2025. 33