HF 757 (LSB 2766HZ (2) 88)

HOUSE FILE 757

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 656)
(SUCCESSOR TO HSB 235)

A BILL FOR

An Act relating to the authority and duties of the auditor of state by modifying provisions relating to the collection of certain fees and the provision of municipal financial management training and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 11.6, subsection 11, paragraph a, Code 2019, is amended to read as follows:
   a.  The auditor of state shall adopt rules in accordance with chapter 17A to establish and collect a periodic examination fee from cities that are not required to have an audit or required fiscal year examination conducted pursuant to subsection 1 during a fiscal year. Such fees are due on March 31 each year. The auditor of state shall base the periodic examination fees on established by the auditor of state shall be on a sliding scale, based on the city’s budgeted gross expenditures, to produce total revenue of not more than three hundred seventy-five five hundred fifty thousand dollars for each fiscal year. However, cities that pay a filing fee for an audit or examination pursuant to subsection 10 during the fiscal year are not required to pay the periodic examination fee. The funds collected shall be maintained in a segregated account for use by the office of the auditor of state in performing periodic examinations conducted pursuant to subsection 1. However, if the fees collected in one fiscal year exceed three hundred seventy-five five hundred fifty thousand dollars, the auditor of state shall apply the excess funds to provide training to city officials on municipal financial management or shall contract with a qualified organization to provide such training. Notwithstanding section 8.33, any fees collected by the auditor of state for these purposes that remain unexpended at the end of the fiscal year shall not revert to the general fund of the state or any other fund but shall remain available for use for the following fiscal year for the purposes authorized in this subsection.
    Sec. 2.  APPLICABILITY.  This Act applies to fiscal years beginning on or after July 1, 2019.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 11.6(11) authorizes the auditor of state to establish and collect a periodic examination fee from cities that are not required to have an audit or required fiscal year examination during a fiscal year. The auditor of state is required to base the fees on a sliding scale, based on the city’s budgeted gross expenditures, to produce total revenue of not more than $375,000 for each fiscal year. Current law also requires the auditor of state to provide or contract for training to city officials on municipal financial management if the periodic examination fees collected in a fiscal year exceed $375,000 using the excess funds. 
   This bill increases the $375,000 cap on total periodic examination fees collected by the auditor of state to $550,000. The bill also modifies the threshold amount in order to require the auditor of state to provide or contract for training to city officials on municipal financial management.
   The bill applies to fiscal years beginning on or after July 1, 2019.