SENATE FILE 139

BY  HAMERLINCK

(COMPANION TO HF 6 BY COWNIE)

A BILL FOR

An Act requiring the development of a searchable budget database and internet site for the public to access the details of the expenditure of state tax revenues and a searchable tax rate database and internet site for the public to access the details of each tax rate for all taxing districts in the state.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 8.6, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  9A.  Budget and tax rate databases.  To develop and make available to the public a searchable budget database and internet site as required under chapter 8G, division I, and to develop and make available to the public a searchable tax rate database and internet site as required under chapter 8G, division II.
   Sec. 2.  NEW SECTION.  8G.1  Intent —— findings.
   The general assembly finds that taxpayers should be able to easily access the details on how the state is spending their tax dollars and the performance results achieved for those expenditures. Therefore, it is the intent of the general assembly to direct the department of management to create and maintain a searchable budget database and internet site detailing where tax dollars are expended, the purposes for which tax dollars are expended, and the results achieved for all taxpayer investments in state government.
   Sec. 3.  NEW SECTION.  8G.2  Short title.
   This subchapter shall be known as and may be cited as the “Taxpayer Transparency Act”.
   Sec. 4.  NEW SECTION.  8G.3  Definitions.
   As used in this subchapter, unless the context otherwise requires:
   1.  “Agency” means a state department, office, board, commission, bureau, division, institution, or public institution of higher education. “Agency” includes individual state agencies and programs, as well as those programs and activities that are administered by or involve more than one agency. “Agency” includes all elective offices in the executive branch of government and the general assembly.
   2.  “Director” means the director of the department of management.
   3.  “Entity” or“recipients” means any of the following:
   a.  A corporation.
   b.  An association.
   c.  An employee union.
   d.  A limited liability company.
   e.  A limited liability partnership.
   f.  Any other legal business entity, including nonprofit entities.
   g.  A grant recipient.
   h.  Contractors.
   i.  A county, city, school district, or other local government entity.
   “Entity” or “recipients” does not include an individual recipient of state assistance.
   4.  “Funding action or expenditure” includes details on the type of spending that is provided including but not limited to grants, contracts, and appropriations. “Funding action or expenditure” includes tax exemptions or credits. Where possible, an electronic link to the actual grants or contracts shall be provided. An electronic link shall be in a format that is a searchable document.
   5.  “Funding source” means the state account or fund from which the expenditure is appropriated.
   6.  “Searchable internet site” means an internet site that allows the public at no cost to search and compile the information identified in section 8G.4 and that provides such information in a format capable of being downloaded from the site to personal computers.
   7.  “State audit or report” shall include any audit or report issued by the auditor of state, department of management, legislative services agency, legislative committee, or executive body relating to the entity or recipient of funds, the budget program or activity, or agency.
   Sec. 5.  NEW SECTION.  8G.4  Searchable budget database internet site created.
   1.  By January 1, 2013, the director shall develop and make publicly available a database internet site for searching, accessing, and processing data, including the data required in this section, for the most recent state budget. The internet site shall be developed in such a way that the information can be provided to other software applications, including internet software applications, in a manner and format that allows such software applications to access and interpret the data using the internal programming of the software applications.
   2.  The searchable internet site developed pursuant to this section shall allow the public at no cost to search and compile information for all of the following:
   a.  Name and principal location or residence of the entity or recipient of state funds.
   b.  Amount of state funds expended.
   c.  Funding or expending agency.
   d.  Funding source of the revenue expended.
   e.  Budget program or activity of the expenditure.
   f.  Descriptive purpose for the funding action or expenditure.
   g.  Expected performance outcome for the funding action or expenditure.
   h.  Past performance outcomes achieved for the funding action or expenditure.
   i.  State audit or report relating to the entity or recipient of state funds or the budget program or activity or agency.
   j.  Any other relevant information specified by the director.
   Sec. 6.  NEW SECTION.  8G.5  Internet site updates.
   1.  Effective July 1, 2013, the internet site shall be updated for each fiscal year not later than thirty days following the close of the fiscal year. In addition, the director may update the internet site as new data becomes available. All agencies shall provide to the director data that is required to be included on the internet site not later than thirty days after the data becomes available to the agency. The director shall provide guidance to agency heads or the governing body of an agency to ensure compliance with this section.
   2.  By January 1, 2014, the director shall add data for the previous budgets to the internet site. Data for previous fiscal years may be added as it becomes available and as time permits. The director shall ensure that all data added to the internet site remain accessible to the public for a minimum of ten years.
   Sec. 7.  NEW SECTION.  8G.6  Noncompliance.
   The director shall not be considered in compliance with this subchapter if the data required for the internet site is not available in a searchable manner and capable of being compiled or if the public is redirected to other government internet sites unless each of those sites displays information from all agencies and each category of information required can be searched electronically by field in a single search.
   Sec. 8.  NEW SECTION.  8G.10  Intent —— findings.
   The general assembly finds that increasing the ease of public access to state and local tax rates, particularly where the rates are currently available from disparate government sources and are difficult for the public to collect and efficiently aggregate, significantly contributes to governmental accountability, public participation, and the understanding of the cost of government services. Therefore, it is the intent of the general assembly to direct the department of management, in consultation with the department of revenue, to create and maintain a searchable database and internet site of each tax rate for all taxing districts in the state to make citizen access to state and local tax rates as open, transparent, and publicly accessible as is feasible.
   Sec. 9.  NEW SECTION.  8G.11  Short title.
   This subchapter shall be known and cited as the “Taxation Disclosure Act”.
   Sec. 10.  NEW SECTION.  8G.12  Tax rate database.
   1.  Searchable tax rate database.  By January 1, 2012, the department of management, in consultation with the department of revenue, shall make publicly available on an internet site a searchable database of all tax rates in the state for each taxing jurisdiction. The information shall be aggregated by type of tax and accessible by entering a zip code or physical address for each residency or business. Individual tax levies shall be further specified within each tax rate.
   2.  Geographical tax rate map.  In addition to searching for tax rates by zip code or physical address for each residency or business, searches shall be accommodated by a geographical tax rate map of the state that is capable of being displayed with a level of specificity corresponding to each taxing district.
   3.  Individual tax rate calculator.  Tax rate calculators shall be provided on the searchable database to allow citizens and businesses to calculate taxes based on the location of the citizen or business. Calculation capability shall be provided at a minimum for property, sales, use, income, vehicle, and business taxes and shall be specific to the rate for the taxing district identified by the citizen or business.
   Sec. 11.  NEW SECTION.  8G.13  Updating database.
   To facilitate the department of management’s efforts in creating and maintaining a searchable database of the taxes identified in section 8G.12, subsection 3, for all taxing districts in the state, every taxing district shall report its tax rates annually to the department of management and shall report any changes to its tax rates within thirty days of the change.
EXPLANATION
   This bill enacts new Code chapter 8G which is divided into two separate subchapters. The first subchapter (new Code sections 8G.1 through 8G.6), requires the department of management to develop and make available to the public by January 1, 2013, a single, searchable budget database and internet site. This internet site would allow the public at no cost to search an aggregated database that would provide the names and principal location or residence of recipients of state funds, amount of funds expended, the agency that provided those funds, the program or activity of the expenditure, description of the purpose of the expenditure, expected and past outcomes of funding actions or expenditures, state audits relating to expenditures, and other relevant information. The bill specifies that “recipient” does not include an individual recipient of state assistance.
   The bill provides that, effective July 1, 2013, the searchable budget database internet site is to be updated within 30 days of the end of each fiscal year. By January 1, 2014, data is to be added for previous fiscal years.
   The second subchapter requires the department of management, in consultation with the department of revenue, by January 1, 2012, to develop and operate on an internet site a searchable database of all the tax rates in the state for each taxing district. The database shall include the capability to calculate tax rates for different taxing districts.