House approves SB133 to raise local fiscal-reporting thresholds, add alternative reviews

The House of Representatives on the final day of the 2026 regular session approved Senate Bill 133, a measure that raises thresholds for when local special-purpose government entities must undergo full financial audits and allows qualifying entities to opt for targeted agreed-upon-procedures reviews.

The bill’s floor explanation, given by the gentleman from Christian 8, said the measure “brings common sense reform, flexibility and efficiency to how our local government entities report their finances” and that it is meant to “modernize outdated thresholds and reporting requirements for special-purpose governmental entities” while preserving oversight by the Department for Local Government and the Auditor of Public Accounts.

Members adopted House floor amendment three, a friendly amendment explained by the gentleman from Marshall that delays the county clerk storage-fee reporting deadline from July 1 to August 1 for counties that choose that option. In floor discussion, the lady from Jefferson 41 pressed whether the bill would affect small cities and 911 or EMS boards; the sponsor said the change reflects inflation and reduces the audit burden on smaller entities while preserving safeguards and permitting the Auditor to intervene.

The House voted to pass SB133 as amended; the clerk reported 97 members voting yea and no members voting nay. Under the bill, the Department for Local Government retains authority to reject participation in the alternate review process and the state auditor maintains oversight standards.

The measure’s sponsors and supporters framed it as a way to reduce administrative costs for small local entities while maintaining transparency. Opponents did not register recorded votes against the measure on the floor. The bill will proceed to enrollment and then to the governor per the chamber’s regular process.