(1)    For the distribution in 2024 and subsequent years, if in any year a county or municipality fails to satisfy the requirements under s. 62.90 (5) (a) or 66.0608 (2m), the secretary of administration shall reduce the county’s or municipality’s total of payments under ss. 79.036 and 79.037 for the next year by 15 percent.

   (1m)   For the distribution in 2024 and subsequent years, if in any year a municipality fails to satisfy the requirements under s. 62.90 (5) (bm), the secretary of administration shall reduce the municipality’s payment under s. 79.037 for the next year by 15 percent.

   (2)   

      (a)   

         1.    If in any year a county that imposes the tax under s. 77.70 (2) fails to make the contribution to its retirement system’s unfunded actuarial accrued liability, as required under s. 77.70 (2) (a), the department of revenue shall reduce the county’s total of payments under ss. 79.035, 79.036, and 79.037 for that year by the amount of the unpaid contribution and direct the department of administration to pay that amount towards the retirement system’s unfunded actuarial accrued liability.

         2.    If in any year a county that imposes the tax under s. 77.70 (2) uses the revenue from that tax for an expenditure that is not authorized under s. 77.70 (2), the department of revenue shall reduce the county’s total of payments under ss. 79.035, 79.036, and 79.037 for that year by the amount of the unauthorized expenditure and direct the department of administration to pay to the county the reduced amount.

      (b)   

         1.    If in any year a municipality that imposes the tax under s. 77.701 fails to make the contribution to its retirement system’s unfunded actuarial accrued liability, as required under s. 77.701 (1), the department of revenue shall reduce the municipality’s total of payments under ss. 79.035, 79.036, and 79.037 for that year by the amount of the unpaid contribution and direct the department of administration to pay that amount towards the retirement system’s unfunded actuarial accrued liability.

         2.    If in any year a municipality that imposes the tax under s. 77.701 uses the revenue from that tax for an expenditure that is not authorized under s. 77.701, the department of revenue shall reduce the municipality’s total of payments under ss. 79.035, 79.036, and 79.037 for that year by the amount of the unauthorized expenditure and direct the department of administration to pay to the municipality the reduced amount.