Catch Title: SF0062 Legislature Reorganization of Department of Audit

Sponsor: Management Audit Committee

Effective Date: Effective immediately upon completion of all acts necessary for a bill to become law

Bill URL: SF0062 – Wyoming Legislature

Overview:

This bill initiates a fundamental structural shift in state government by requiring a plan to transfer the Public Funds Division of the Department of Audit from the Executive branch to the Legislative branch. The goal is to reorganize these auditing functions under a newly envisioned Legislative Office of Audit or similar entity, granting the Legislature direct oversight and administrative control over the auditing of public funds currently managed by executive appointees.

Key Provisions:

• Reorganization Planning: The Director of the Department of Audit and the Director of the Legislative Service Office (LSO) must jointly develop a “Type 2 transfer” plan by July 1, 2026.
• Transfer Scope: The plan must facilitate the transfer of all personnel, supplies, equipment, and appropriations specifically for the Public Funds Division to the Legislature.
• Mandatory Public Hearings: Both the Management Council and the Management Audit Committee are required to hold at least one public hearing regarding the plan before the 2027 General Session.
• Legislative Approval Required: The final transfer is contingent upon the Legislature drafting and passing subsequent legislation during the 2027 General Session based on the submitted plan.
• Rulemaking Authority Shift: Following approval, the Management Council—rather than executive directors—will gain the authority to adopt, amend, or repeal rules for the new legislative audit entity.

Implications:

• Separation of Powers & Concentration of Authority:
  • This represents a significant move to blur the lines between branches by shifting an inherently administrative and executive function (auditing state and local government funds) into the Legislative branch.
  • The move substantially increases the authority of the Management Audit Committee, providing them with direct control over the “watchdog” mechanism of state government.
• Fiscal Concern & Institutional Growth:
  • While the bill transfers existing appropriations (approximately 17 FTE positions and an annual budget of $3,298,780), it creates a potential area of fiscal concern.
  • The creation of a standalone “Legislative Office of Audit” separate from the LSO may incur significant additional administrative or infrastructure costs that are currently not specified in the planning phase.
• Operational Risk: The reorganization requires the Legislature to perform all administrative functions currently handled by the Executive branch, which may lead to logistical gaps during the transition period ending July 1, 2027.