H.F. _____ Section 1. Section 331.301, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 17. The board of supervisors may by 3 ordinance adopt an alternate county fee schedule pursuant to 4 section 331.310. 5 Sec. 2. NEW SECTION . 331.310 Alternate county fee 6 structure. 7 1. Notwithstanding any other provision of the Code to the 8 contrary, the board of supervisors may adopt an ordinance 9 establishing an alternate county fee schedule. An alternate 10 county fee schedule adopted pursuant to this section shall 11 apply to all fees authorized to be collected by the county 12 or by any officer of the county for providing a service, 13 except that an alternate county fee schedule shall not include 14 building permit fees or fees collected by the county when 15 acting as an agent of the state for which the state provides a 16 service or incurs a cost. 17 2. An alternate county fee schedule shall be established 18 based upon the actual cost to the county for providing a 19 service for which a fee is charged. The county shall calculate 20 actual costs by determining the average expenses necessary to 21 provide the individual service over the previous two years for 22 which the fee was charged. The amount of any new fee imposed 23 by a county shall be set based upon a best estimate of the 24 average expenses necessary to provide the individual service 25 based upon fees charged by the county or other counties of the 26 state for the provision of similar services. “Actual cost” 27 means only those expenses directly attributable to the purpose 28 for which the fee is collected. “Actual cost” shall not include 29 costs such as employment benefits, depreciation, maintenance, 30 utilities, or insurance associated with county operations. 31 3. a. Prior to adopting an ordinance pursuant to this 32 section, the board of supervisors shall publish notice as 33 provided in this subsection. The proposed ordinance shall, 34 upon first reading, be placed on file with the county auditor 35 -1- LSB 2482YC (2) 85 aw/sc 1/ 5

H.F. _____ for public inspection, and, upon second reading, if and 1 as amended, shall be published in a newspaper of general 2 circulation, together with the time and place for a public 3 hearing on the proposed ordinance. The hearing shall be held 4 not less than ten days prior to the board meeting at which the 5 ordinance shall be placed upon its passage. 6 b. The notice shall include information on the actual cost 7 of providing each service for which a fee is charged and on 8 the proposed amount of each fee under the alternate county fee 9 schedule. 10 4. a. A county that has adopted an alternate county fee 11 schedule may review the fee schedule annually, but shall review 12 the fee schedule at least once every two years, to review 13 actual costs associated with each fee on the schedule or to add 14 fees authorized by law to the fee schedule. 15 b. Following a review conducted pursuant to paragraph “a” , 16 the board of supervisors shall, if determined necessary, amend 17 the ordinance to update the alternate county fee schedule 18 pursuant to subsections 2 and 3. 19 Sec. 3. Section 364.2, Code 2013, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 6. The city council may by ordinance adopt 22 an alternate city fee schedule pursuant to section 364.2A. 23 Sec. 4. NEW SECTION . 364.2A Alternate city fee structure. 24 1. Notwithstanding any other provision of the Code to the 25 contrary, the city council may adopt an ordinance establishing 26 an alternate city fee schedule. An alternate city fee schedule 27 adopted pursuant to this section shall apply to all fees 28 authorized to be collected by the city or by any officer of the 29 city for providing a service, except that an alternate city 30 fee schedule shall not include building permit fees or fees 31 collected by the city when acting as an agent of the state for 32 which the state provides a service or incurs a cost. 33 2. An alternate city fee schedule shall be established 34 based upon the actual cost to the city for providing a service 35 -2- LSB 2482YC (2) 85 aw/sc 2/ 5

H.F. _____ for which a fee is charged. The city shall calculate actual 1 costs by determining the average expenses necessary to provide 2 the individual service over the previous two years for which 3 the fee was charged. The amount of any new fee imposed by a 4 city shall be set based upon a best estimate of the average 5 expenses necessary to provide the individual service based upon 6 fees charged by the city or other cities of the state for the 7 provision of similar services. “Actual cost” means only those 8 expenses directly attributable to the purpose for which the fee 9 is collected. “Actual cost” shall not include costs such as 10 employment benefits, depreciation, maintenance, utilities, or 11 insurance associated with city operations. 12 3. a. Prior to adopting an ordinance pursuant to this 13 section, the city council shall publish notice as provided 14 in this subsection. The proposed ordinance shall, upon 15 first reading, be placed on file with the clerk for public 16 inspection, and, upon second reading, if and as amended, shall 17 be published in a newspaper of general circulation, together 18 with the time and place for a public hearing on the proposed 19 ordinance. The hearing shall be held not less than ten days 20 prior to the council meeting at which the ordinance shall be 21 placed upon its passage. 22 b. The notice shall include information on the actual cost 23 of providing each service for which a fee is charged and on 24 the proposed amount of each fee under the alternate city fee 25 schedule. 26 4. a. A city that has adopted an alternate city fee 27 schedule may review the fee schedule annually, but shall review 28 the fee schedule at least once every two years, to review 29 actual costs associated with each fee on the schedule or to add 30 fees authorized by law to the fee schedule. 31 b. Following a review conducted pursuant to paragraph “a” , 32 the city council shall, if determined necessary, amend the 33 ordinance to update the alternate city fee schedule pursuant 34 to subsections 2 and 3. 35 -3- LSB 2482YC (2) 85 aw/sc 3/ 5

H.F. _____ EXPLANATION 1 This bill allows counties and cities to adopt alternate fee 2 schedules for the provision of certain services. 3 The bill provides that a board of supervisors may adopt an 4 ordinance to establish an alternate county fee schedule for all 5 fees collected by a county for services, other than building 6 permit fees and fees collected on behalf of the state. Each 7 fee shall be calculated based upon the actual cost of providing 8 the particular service for which the fee is charged. The bill 9 requires that a county fulfill certain notice requirements, 10 including publication of information regarding the actual cost 11 of each service and the proposed amount of each fee, in the 12 adoption of such an ordinance. 13 The bill further provides that a city council may adopt 14 an ordinance to establish an alternate city fee schedule for 15 all fees collected by a city for services other than building 16 permit fees and fees collected on behalf of the state. Each 17 fee shall be calculated based upon the actual cost of providing 18 the particular service for which the fee is based. The bill 19 requires that a city fulfill certain notice requirements, 20 including publication of information regarding the actual cost 21 of each service and the proposed amount of each fee, in the 22 adoption of such an ordinance. 23 A city or county that has adopted an alternate county fee 24 schedule is required to review the fee schedule at least 25 once every two years to review actual costs associated with 26 each fee, but the city or county may review the fee schedule 27 each year. Following a review, the city council or board 28 of supervisors shall amend the ordinance to update the fee 29 schedule and may add fees authorized by law. 30 The bill defines “actual cost” to mean only those expenses 31 directly attributable to the purpose for which the fee is 32 collected and shall not include costs such as employment 33 benefits, depreciation, maintenance, utilities, or insurance 34 associated with operations of the city or county, as 35 -4- LSB 2482YC (2) 85 aw/sc 4/ 5