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Senate passes bill to register limited-purpose entities after legislative audit finds weak oversight
Summary
Senator Henderson presented SB 28 to create a statewide registry for roughly 500 local limited-purpose entities and to authorize withholding funds for chronic noncompliance; the Senate passed the bill and will send it to the House.
Senator Deidre Henderson presented SB 28 after a legislative audit found weak internal controls, poor compliance with disclosure laws and a lack of a comprehensive list of limited-purpose entities (special service districts, interlocal agencies, local districts and independent entities). "One of the big problems...is we don't know who all of these entities are," Henderson said, estimating roughly 500 entities and arguing a registry is needed to improve transparency and accountability.
SB 28 requires local government and limited-purpose entities to register with the Lieutenant Governor’s office and update their information annually. Henderson said the bill includes mechanisms to encourage compliance, including authorizing the state auditor to withhold funds or freeze accounts for entities that chronically fail to comply with transparency or financial-reporting requirements.
Senators voiced support and thanks for the stakeholder process behind the bill; Senator Henderson reported unanimous interim-committee approval. The Senate voted to pass SB 28 and the clerk recorded the passage as 28 yes votes, 0 nay votes and 1 absence; the bill will be transmitted to the House for consideration.
