Municipal Government - As enacted, specifies penalties for a municipality that fails to timely provide the comptroller of the treasury with copies of audits of the accounts and records of all departments, boards, and agencies under the municipality's jurisdiction that receive and disburse funds. - Amends TCA Title 6, Chapter 56, Part 1.

HB 57 requires Tennessee municipalities to submit annual financial audits to the state comptroller within six months after their fiscal year ends. Municipalities with two or more overdue audits face reduced sales tax revenue (capped at 15% of annual funds), with penalties held in reserve until compliance is verified. The comptroller may waive penalties under established procedures. This directly affects cities and towns managing public funds, ensuring timely audit submissions to state oversight.