Senate Bill 314 - Summary

• Delays implementation of sales tax distribution formula changes until the fiscal year following the initial decision by county commissioners to allow adequate transition time.

• Requires the Local Government Commission to include a statement on proposed municipalities' financial viability and fiscal management prospects in petitions for new city incorporations.

• Expands training options for finance officers and city/county managers, allowing the Local Government Commission to mandate specialized training when fiscal distress is identified.

• Establishes a two-part process for municipalities in financial distress: cities can voluntarily initiate dissolution with voter referendum approval, or the Commission can initiate intervention with authority to assume financial control and dissolve cities if necessary.

• Authorizes the Local Government Commission to transfer assets, liabilities, and obligations to partner local governments and dissolve financially distressed cities, with General Assembly veto authority over dissolution resolutions.