State and local audit examinations.

Requires, beginning July 1, 2020, the uniform compliance guidelines for audit examinations of state or local units conducted by the state board of accounts to include a required disclosure of any pledge, covenant, or agreement that the unit has made as security or guarantor for a private bond issue of a private company. Requires any entity that: (1) is subject to examination or audit by the state board of accounts; and (2) has made a pledge, covenant, or agreement as security or guarantor for a private bond issue of a private company; to disclose such fact in the notes of the entity's financial statements. Requires, beginning July 1, 2020, the fiscal officer of a political subdivision that is subject to audit by the state board of accounts to prepare a debt capacity analysis report (report) and present the report to the fiscal body of the political subdivision in a public hearing before the political subdivision may issue or guarantee any debt obligation. Requires, not later than July 1, 2020, the state board of accounts, with the assistance of the department of local government finance, to prescribe a standard form report that must be used by a fiscal officer in the presentation. Requires the report to include a determination of the percentage of the political subdivision's total debt obligations (including guarantees) compared to the political subdivision's prospective revenue available for debt service.