Relating to municipalities that have failed to complete required financial audits for multiple years

HB 5064 addresses municipalities in West Virginia that fail to complete required annual financial audits for three consecutive years (defined as "chronic audit noncompliance"). It authorizes the State Auditor to evaluate a municipality's financial recovery potential, requires the municipality to submit a recovery plan, and allows for a structured transition to dissolution if recovery is unlikely. The bill mandates specific notice requirements to affected municipalities and clarifies the duties of a financial receiver during dissolution, including how dissolution affects utilities regulated by the Public Service Commission. This directly impacts local governments that miss audit deadlines, creating a formal process to address fiscal instability.