House File 801 - Introduced HOUSE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HF 74) 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 1732HV 83 8 mg/sc/14 PAG LIN 1 1 Section 1. Section 8A.104, Code 2009, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 12A. BUDGET AND TAX RATE DATABASES. 1 4 Develop and make available to the public a searchable budget 1 5 database as required under chapter 8G, division I, and to 1 6 develop and make available to the public a searchable tax rate 1 7 database as required under chapter 8G, division II and to make 1 8 both databases available on the same website. 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 administrative services 1 17 to create and maintain a searchable budget database website 1 18 detailing where tax dollars are expended, the purposes for 1 19 which tax dollars are expended, the special interest tax 1 20 credits allowed, and the results achieved for all taxpayer 1 21 investments in state government. 1 22 Sec. 3. NEW SECTION. 8G.2 SHORT TITLE. 1 23 This division shall be known as and may be cited as the 1 24 "Openness Promotes Efficiency Now Act". 1 25 Sec. 4. NEW SECTION. 8G.3 DEFINITIONS. 1 26 As used in this division, unless the context otherwise 1 27 requires: 1 28 1. "Agency" means a state department, office, board, 1 29 commission, bureau, division, institution, or public 1 30 institution of higher education. "Agency" includes individual 1 31 state agencies and programs, as well as those programs and 1 32 activities that are administered by or involve more than one 1 33 agency. "Agency" includes the judicial branch of government. 1 34 "Agency" includes all elective offices in the executive branch 1 35 of government and the general assembly. 2 1 2. "Director" means the director of the department of 2 2 administrative services. 2 3 3. "Entity" or "recipients" means any of the following: 2 4 a. A corporation. 2 5 b. An association. 2 6 c. An employee union. 2 7 d. A limited liability company. 2 8 e. A limited liability partnership. 2 9 f. Any other legal business entity, including nonprofit 2 10 entities. 2 11 g. A grant recipient. 2 12 h. Contractors. 2 13 i. A county, city, school district, or other local 2 14 government entity. 2 15 "Entity" or "recipients" does not include an individual 2 16 recipient of state assistance. 2 17 4. "Funding action or expenditure" includes details on the 2 18 type of spending that is provided including but not limited to 2 19 grants, contracts, and appropriations. "Funding action or 2 20 expenditure" includes tax exemptions or credits. Where 2 21 possible, an electronic link to the actual grants or contracts 2 22 shall be provided. An electronic link shall be in a format 2 23 that is a searchable document. 2 24 5. "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 sections 8G.4 and 8G.12 and 2 27 that is in a format capable of being downloaded. 2 28 6. "State audit or report" shall include any audit or 2 29 report issued by the auditor of state. 2 30 Sec. 5. NEW SECTION. 8G.4 SEARCHABLE BUDGET DATABASE 2 31 WEBSITE CREATED. 2 32 1. By January 1, 2011, the director shall develop and make 2 33 publicly available a database website for searching, 2 34 accessing, and processing data, including the data required in 2 35 this section, for the most recent state budget. The state 3 1 budget for the fiscal year beginning July 1, 2009, shall 3 2 include the expenditure of funds received through the federal 3 3 American Recovery and Reinvestment Act of 2009. 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, compile, 3 11 and download information for all of the following: 3 12 a. To the extent practicable and within the bounds of the 3 13 confidentiality provisions, the identity of the entity or 3 14 recipient of state expenditures. 3 15 b. Amount of annual revenues and expenditures for each 3 16 agency's appropriations and funds. 3 17 c. Descriptive purpose for the funding or expenditure. 3 18 d. Performance results associated with the agency's 3 19 activities. 3 20 e. Past performance results associated with the agency's 3 21 activities. 3 22 f. State audits or reports relating to the entity or 3 23 recipient of state funds, the budget program or activity, or 3 24 agency. 3 25 g. Any other relevant information specified by the 3 26 director. 3 27 3. In addition to the information to be provided pursuant 3 28 to subsection 2, there shall be provided on the searchable 3 29 website all of the following: 3 30 a. A listing and description of special interest tax 3 31 credits claimed for the individual income tax, corporate 3 32 income tax, franchise tax, and insurance premiums tax. A 3 33 special interest tax credit is a tax credit for which fewer 3 34 than twenty percent of the tax filers in the applicable tax 3 35 category claim the tax credit. For each category of tax the 4 1 website shall list each of the special interest tax credits 4 2 applicable to it, the total amount of that tax credit claimed, 4 3 and the number of taxpayers claiming the tax credit. 4 4 b. The estimated cost to the state of each of the twenty 4 5 sales tax exemptions that account for the largest dollar 4 6 amount share of sales tax exemptions under section 423.3. The 4 7 cost of each exemption shall be listed by county and, in 4 8 addition, stated as a per capita amount for each county. This 4 9 paragraph does not apply to the tax exemptions pursuant to 4 10 section 423.3, subsections 2, 31, 39, 58, 73, and 85. 4 11 4. If the funding source of the revenue expended is the 4 12 grow Iowa values fund created pursuant to section 15G.108, 4 13 then in addition to any information provided pursuant to 4 14 subsections 2 and 3, there shall be provided on the searchable 4 15 website all of the following: 4 16 a. For financial assistance provided during the fiscal 4 17 year, a listing, per recipient, of the number of jobs pledged 4 18 and the number of jobs actually created. The actual jobs 4 19 created shall be adjusted throughout the year as new figures 4 20 become available. 4 21 b. The total estimated cost to the state in addition to 4 22 the amount of financial assistance awarded, including any 4 23 administrative expenses of the agency or department 4 24 administering the fund. 4 25 c. An allocation by state legislative district and county 4 26 of the total amount of financial assistance awards and the 4 27 number of job creations associated with such awards during the 4 28 fiscal year. 4 29 5. In providing data on tax exemptions or credits, 4 30 confidentiality statutes of Iowa and federal law shall be 4 31 adhered to. 4 32 6. The director shall provide a progress and 4 33 implementation report to members of the senate and house 4 34 committees on government oversight every ninety days with the 4 35 first report due October 1, 2009. 5 1 Sec. 6. NEW SECTION. 8G.5 WEBSITE UPDATES. 5 2 1. Effective July 1, 2011, the searchable website shall be 5 3 updated for each fiscal year not later than thirty days 5 4 following the close of the fiscal year. During the fiscal 5 5 year beginning July 1, 2011, and each subsequent fiscal year, 5 6 the director shall make a preliminary report for the fiscal 5 7 year on the searchable website within thirty days following 5 8 each quarter. In addition, the director may update the 5 9 searchable website as new data becomes available. All 5 10 agencies shall provide to the director data that is required 5 11 to be included in the searchable website not later than thirty 5 12 days after the data becomes available to the agency. The 5 13 director shall provide guidance to agency heads or the 5 14 governing body of an agency to ensure compliance with this 5 15 section. 5 16 2. By January 1, 2012, the director shall add data for the 5 17 previous budgets to the searchable website. Data for previous 5 18 fiscal years may be added as it becomes available and as time 5 19 permits. The director shall ensure that all data added to the 5 20 searchable website remain accessible to the public for a 5 21 minimum of ten years. 5 22 Sec. 7. NEW SECTION. 8G.6 NONCOMPLIANCE. 5 23 The director shall not be considered in compliance with 5 24 this division if the data required for the searchable website 5 25 is not available in a searchable manner and capable of being 5 26 compiled and downloaded or if the public is redirected to 5 27 other government websites unless each of those sites has 5 28 information from all agencies and each category of information 5 29 required can be searched electronically by field in a single 5 30 search. 5 31 Sec. 8. NEW SECTION. 8G.7 EXECUTIVE ORDER TO IMPLEMENT. 5 32 Nothing in this division shall be construed as preventing 5 33 the governor from acting by executive order to implement any 5 34 action authorized or required under this division. 5 35 DIVISION II 6 1 SEARCHABLE TAX RATE DATABASE 6 2 Sec. 9. NEW SECTION. 8G.10 INTENT == FINDINGS. 6 3 The general assembly finds that increasing the ease of 6 4 public access to state and local tax rates, particularly when 6 5 the rates are currently available from disparate government 6 6 sources but are difficult for the public to collect and 6 7 efficiently aggregate, significantly contributes to 6 8 governmental accountability, public participation, and the 6 9 understanding of the cost of government services. Therefore, 6 10 it is the intent of the general assembly to direct the 6 11 department of administrative services, in consultation with 6 12 the department of revenue, to create and maintain a searchable 6 13 database detailing each tax rate for all taxing districts in 6 14 the state to make citizen access to information on state and 6 15 local tax rates as open, transparent, and publicly accessible 6 16 as is feasible. 6 17 Sec. 10. NEW SECTION. 8G.11 SHORT TITLE. 6 18 This division shall be known and cited as the "Government 6 19 Accountability and Disclosure Act". 6 20 Sec. 11. NEW SECTION. 8G.12 TAX RATE DATABASE. 6 21 1. SEARCHABLE TAX RATE DATABASE. By January 1, 2010, the 6 22 department of administrative services, in consultation with 6 23 the department of revenue, shall make publicly available on 6 24 the website created pursuant to section 8G.4 a searchable 6 25 database of all tax rates in the state for each taxing 6 26 jurisdiction. The information shall be aggregated by type of 6 27 tax and accessible by entering a zip code or physical address 6 28 for each residence or business. Individual tax levies shall 6 29 be further specified within each tax rate. 6 30 2. GEOGRAPHICAL TAX RATE MAP. In addition to searching 6 31 for tax rates by zip code or physical address for each 6 32 residence or business, searches shall be accommodated by a 6 33 geographical tax rate map of the state that is capable of 6 34 being displayed with a level of specificity corresponding to 6 35 each taxing district. 7 1 3. INDIVIDUAL TAX RATE CALCULATOR. Tax rate calculators 7 2 shall be provided on the searchable database to allow citizens 7 3 and businesses to calculate taxes based on the location of the 7 4 citizen or business. Calculation capability shall be provided 7 5 at a minimum for property, sales, use, income, vehicle, and 7 6 business taxes and shall be specific to the rate for the 7 7 taxing district identified by the citizen or business. 7 8 Sec. 12. NEW SECTION. 8G.13 UPDATING DATABASE. 7 9 To facilitate the department of administrative services' 7 10 efforts in creating and maintaining a searchable database of 7 11 the taxes identified in section 8G.12, subsection 3, for all 7 12 taxing districts in the state, every taxing district shall 7 13 annually report its tax rates, and any change to the rates, to 7 14 the department of revenue. Within thirty days of receiving 7 15 such information, the department shall report the tax rates, 7 16 and any changes to the rates, to the department of 7 17 administrative services. 7 18 Sec. 13. CODE EDITOR DIRECTIVE. Unless otherwise 7 19 determined by the Iowa Code editor, sections 8G.1 through 7 20 8G.7, as enacted in this Act, shall be designated as division 7 21 I of chapter 8G, and sections 8G.10 through 8G.13, as enacted 7 22 in this Act, shall be designated as division II of chapter 8G. 7 23 EXPLANATION 7 24 This bill enacts new Code chapter 8G which is divided into 7 25 two separate divisions. Division I of the Code chapter 7 26 requires the department of administrative services to develop 7 27 and make available to the public by January 1, 2011, a single, 7 28 searchable budget database website. For the fiscal year 7 29 beginning July 1, 2009, the database would include 7 30 expenditures of federal funds received under the American 7 31 Recovery and Reinvestment Act of 2009. This website would 7 32 allow the public at no cost to search, compile, and download 7 33 an aggregated database that would provide, to the extent 7 34 practicable, the identity of recipients of state funds, amount 7 35 of annual revenues and expenditures for each agency's 8 1 appropriations and funds, the descriptive purpose of the 8 2 expenditure, performance results associated with the agency's 8 3 activities and past performance results associated with such 8 4 activities, state audits relating to the expenditures, and 8 5 other relevant information. The division specifies that 8 6 "recipient" does not include an individual recipient of state 8 7 assistance. 8 8 The division also requires the searchable database to 8 9 include a listing of special interest tax credits and the 8 10 amount claimed under the individual and corporate income, 8 11 franchise, and insurance premiums taxes. A listing of the 8 12 costs of the 20 sales tax exemptions accounting for the 8 13 largest dollar amount share of exemptions and a breakdown of 8 14 these by county is required to be provided. Information on 8 15 financial assistance awarded from the grow Iowa values fund is 8 16 also to be provided, specifying the jobs pledged and the jobs 8 17 created along with a breakdown of financial assistance awards 8 18 and jobs created by state legislative district and county. 8 19 The director of the department of administrative services 8 20 is required to provide a progress and implementation report to 8 21 the committees on government oversight every 90 days with the 8 22 first report due October 1, 2009. 8 23 The division provides that, effective July 1, 2011, the 8 24 website is to be updated within 30 days of the end of each 8 25 fiscal year. By January 1, 2012, data is to be added for 8 26 previous fiscal years. Beginning with the fiscal year 8 27 beginning July 1, 2011, the director is to make preliminary 8 28 reports for the fiscal year following each quarter of the 8 29 fiscal year. A provision is included that states that nothing 8 30 in the division is to be construed to prevent the governor 8 31 from acting by executive order to implement any action 8 32 authorized or required under the division. 8 33 Division II of new Code chapter 8G requires the department 8 34 of administrative services, in consultation with the 8 35 department of revenue, by January 1, 2010, to develop and 9 1 operate on the website a searchable database of all the tax 9 2 rates in the state for each taxing district. The database 9 3 shall include the capability to calculate tax rates for 9 4 different taxing districts. 9 5 LSB 1732HV 83 9 6 mg/sc/14