House File 74HOUSE FILE BY PAULSEN, STRUYK, HELLAND, and UPMEYER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the establishment of a searchable budget 2 database website for the public to access the details of the 3 expenditure of state tax revenues and a searchable tax rate 4 database for the public to access the details of each tax rate 5 for all taxing districts in the state. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1732YH 83 8 mg/sc/14 PAG LIN 1 1 Section 1. Section 8.6, Code 2009, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 9A. BUDGET AND TAX RATE DATABASES. To 1 4 develop and make available to the public a searchable budget 1 5 database website as required under chapter 8G, division I, and 1 6 to develop and make available to the public a searchable tax 1 7 rate database website as required under chapter 8G, division 1 8 II. 1 9 DIVISION I 1 10 SEARCHABLE BUDGET DATABASE FOR STATE SPENDING 1 11 Sec. 2. NEW SECTION. 8G.1 INTENT == FINDINGS. 1 12 The general assembly finds that taxpayers should be able to 1 13 easily access the details on how the state is spending their 1 14 tax dollars and the performance results achieved for those 1 15 expenditures. Therefore, it is the intent of the general 1 16 assembly to direct the department of management to create and 1 17 maintain a searchable budget database website detailing where 1 18 tax dollars are expended, the purposes for which tax dollars 1 19 are expended, and the results achieved for all taxpayer 1 20 investments in state government. 1 21 Sec. 3. NEW SECTION. 8G.2 SHORT TITLE. 1 22 This division shall be known as and may be cited as the 1 23 "Taxpayer Transparency Act". 1 24 Sec. 4. NEW SECTION. 8G.3 DEFINITIONS. 1 25 As used in this division, unless the context otherwise 1 26 requires: 1 27 1. "Agency" means a state department, office, board, 1 28 commission, bureau, division, institution, or public 1 29 institution of higher education. "Agency" includes individual 1 30 state agencies and programs, as well as those programs and 1 31 activities that are administered by or involve more than one 1 32 agency. "Agency" includes all elective offices in the 1 33 executive branch of government and the general assembly. 1 34 2. "Director" means the director of the department of 1 35 management. 2 1 3. "Entity" or "recipients" means any of the following: 2 2 a. A corporation. 2 3 b. An association. 2 4 c. An employee union. 2 5 d. A limited liability company. 2 6 e. A limited liability partnership. 2 7 f. Any other legal business entity, including nonprofit 2 8 entities. 2 9 g. A grant recipient. 2 10 h. Contractors. 2 11 i. A county, city, school district, or other local 2 12 government entity. 2 13 "Entity" or "recipients" does not include an individual 2 14 recipient of state assistance. 2 15 4. "Funding action or expenditure" includes details on the 2 16 type of spending that is provided including but not limited to 2 17 grants, contracts, and appropriations. "Funding action or 2 18 expenditure" includes tax exemptions or credits. Where 2 19 possible, an electronic link to the actual grants or contracts 2 20 shall be provided. An electronic link shall be in a format 2 21 that is a searchable document. 2 22 5. "Funding source" means the state account or fund from 2 23 which the expenditure is appropriated. 2 24 6. "Searchable website" means a website described in 2 25 section 8G.4 that allows the public at no cost to search and 2 26 compile information identified in section 8G.4 and that is in 2 27 a format capable of being downloaded. 2 28 7. "State audit or report" shall include any audit or 2 29 report issued by the auditor of state, department of 2 30 management, legislative services agency, legislative 2 31 committee, or executive body relating to the entity or 2 32 recipient of funds, the budget program or activity, or agency. 2 33 Sec. 5. NEW SECTION. 8G.4 SEARCHABLE BUDGET DATABASE 2 34 WEBSITE CREATED. 2 35 1. By January 1, 2011, the director shall develop and make 3 1 publicly available a database website for searching, 3 2 accessing, and processing data, including the data required in 3 3 this section, for the most recent state budget. The website 3 4 shall be developed in such a way that the information can be 3 5 provided to other software applications, including internet 3 6 software applications, in a manner and format that allows such 3 7 software applications to access and interpret the data using 3 8 the internal programming of the software applications. 3 9 2. The searchable website developed pursuant to this 3 10 section shall allow the public at no cost to search and 3 11 compile information for all of the following: 3 12 a. Name and principal location or residence of the entity 3 13 or recipient of state funds. 3 14 b. Amount of state funds expended. 3 15 c. Funding or expending agency. 3 16 d. Funding source of the revenue expended. 3 17 e. Budget program or activity of the expenditure. 3 18 f. Descriptive purpose for the funding action or 3 19 expenditure. 3 20 g. Expected performance outcome for the funding action or 3 21 expenditure. 3 22 h. Past performance outcomes achieved for the funding 3 23 action or expenditure. 3 24 i. State audit or report relating to the entity or 3 25 recipient of state funds or the budget program or activity or 3 26 agency. 3 27 j. Any other relevant information specified by the 3 28 director. 3 29 Sec. 6. NEW SECTION. 8G.5 WEBSITE UPDATES. 3 30 1. Effective July 1, 2011, the searchable website shall be 3 31 updated for each fiscal year not later than thirty days 3 32 following the close of the fiscal year. In addition, the 3 33 director may update the searchable website as new data becomes 3 34 available. All agencies shall provide to the director data 3 35 that is required to be included in the searchable website not 4 1 later than thirty days after the data becomes available to the 4 2 agency. The director shall provide guidance to agency heads 4 3 or the governing body of an agency to ensure compliance with 4 4 this section. 4 5 2. By January 1, 2012, the director shall add data for the 4 6 previous budgets to the searchable website. Data for previous 4 7 fiscal years may be added as it becomes available and as time 4 8 permits. The director shall ensure that all data added to the 4 9 searchable website remain accessible to the public for a 4 10 minimum of ten years. 4 11 Sec. 7. NEW SECTION. 8G.6 NONCOMPLIANCE. 4 12 The director shall not be considered in compliance with 4 13 this division if the data required for the searchable website 4 14 is not available in a searchable manner and capable of being 4 15 compiled or the public is redirected to other government 4 16 websites unless each of those sites has information from all 4 17 agencies and each category of information required can be 4 18 searched electronically by field in a single search. 4 19 DIVISION II 4 20 SEARCHABLE TAX RATE DATABASE 4 21 Sec. 8. NEW SECTION. 8G.10 INTENT == FINDINGS. 4 22 The general assembly finds that increasing the ease of 4 23 public access to state and local tax rates, particularly where 4 24 the rates are currently available from disparate government 4 25 sources but are difficult for the public to collect and 4 26 efficiently aggregate, significantly contributes to 4 27 governmental accountability, public participation, and the 4 28 understanding of the cost of government services. Therefore, 4 29 it is the intent of the general assembly to direct the 4 30 department of management, in consultation with the department 4 31 of revenue, to create and maintain a searchable database 4 32 website of each tax rate for all taxing districts in the state 4 33 to make citizen access to state and local tax rates as open, 4 34 transparent, and publicly accessible as is feasible. 4 35 Sec. 9. NEW SECTION. 8G.11 SHORT TITLE. 5 1 This division shall be known and cited as the "Taxation 5 2 Disclosure Act". 5 3 Sec. 10. NEW SECTION. 8G.12 TAX RATE DATABASE. 5 4 1. SEARCHABLE TAX RATE DATABASE. By January 1, 2010, the 5 5 department of management, in consultation with the department 5 6 of revenue, shall make publicly available on an internet site 5 7 a searchable database of all tax rates in the state for each 5 8 taxing jurisdiction. The information shall be aggregated by 5 9 type of tax and accessible by entering a zip code or physical 5 10 address for each residency or business. Individual tax levies 5 11 shall be further specified within each tax rate. 5 12 2. GEOGRAPHICAL TAX RATE MAP. In addition to searching 5 13 for tax rates by zip code or physical address for each 5 14 residency or business, searches shall be accommodated by a 5 15 geographical tax rate map of the state that is capable of 5 16 being displayed with a level of specificity corresponding to 5 17 each taxing district. 5 18 3. INDIVIDUAL TAX RATE CALCULATOR. Tax rate calculators 5 19 shall be provided on the searchable database to allow citizens 5 20 and businesses to calculate taxes based on the location of the 5 21 citizen or business. Calculation capability shall be provided 5 22 at a minimum for property, sales, use, income, vehicle, and 5 23 business taxes and shall be specific to the rate for the 5 24 taxing district identified by the citizen or business. 5 25 Sec. 11. NEW SECTION. 8G.13 UPDATING DATABASE. 5 26 To facilitate the department of management's efforts in 5 27 creating and maintaining a searchable database of the taxes 5 28 identified in section 8G.12, subsection 3, for all taxing 5 29 districts in the state, every taxing district shall report its 5 30 tax rates annually to the department of management and shall 5 31 report any changes to its tax rates within thirty days of the 5 32 change. 5 33 Sec. 12. CODE EDITOR DIRECTIVE. Unless otherwise 5 34 determined by the Iowa Code editor, sections 8G.1 through 5 35 8G.6, as enacted in this Act, shall be designated as division 6 1 I of chapter 8G, and sections 8G.10 through 8G.13, as enacted 6 2 in this Act, shall be designated as division II of chapter 8G. 6 3 EXPLANATION 6 4 This bill enacts new Code chapter 8G which is divided into 6 5 two separate divisions. Division I of the Code chapter 6 6 requires the department of management to develop and make 6 7 available to the public by January 1, 2011, a single, 6 8 searchable budget database website. This website would allow 6 9 the public at no cost to search an aggregated database that 6 10 would provide the names and principal location or residence of 6 11 recipients of state funds, amount of funds expended, the 6 12 agency that provided those funds, the program or activity of 6 13 the expenditure, description of the purpose of the 6 14 expenditure, expected and past outcomes of funding actions or 6 15 expenditures, state audits relating to expenditures, and other 6 16 relevant information. The bill specifies that "recipient" 6 17 does not include an individual recipient of state assistance. 6 18 The division provides that, effective July 1, 2011, the 6 19 website is to be updated within 30 days of the end of each 6 20 fiscal year. By January 1, 2012, data is to be added for 6 21 previous fiscal years. 6 22 Division II of the new chapter requires the department of 6 23 management, in consultation with the department of revenue, by 6 24 January 1, 2010, to develop and operate on an internet site a 6 25 searchable database of all the tax rates in the state for each 6 26 taxing district. The database shall include the capability to 6 27 calculate tax rates for different taxing districts. 6 28 LSB 1732YH 83 6 29 mg/sc/14