HSB 207 (LSB 2482YC (2) 85)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON SCHULTZ)

A BILL FOR

An Act allowing counties and cities to adopt alternate fee schedules for the provision of certain services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.301, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  17.  The board of supervisors may by ordinance adopt an alternate county fee schedule pursuant to section 331.310.
    Sec. 2.  NEW SECTION.  331.310  Alternate county fee structure.
   1.  Notwithstanding any other provision of the Code to the contrary, the board of supervisors may adopt an ordinance establishing an alternate county fee schedule. An alternate county fee schedule adopted pursuant to this section shall apply to all fees authorized to be collected by the county or by any officer of the county for providing a service, except that an alternate county fee schedule shall not include building permit fees or fees collected by the county when acting as an agent of the state for which the state provides a service or incurs a cost.
   2.  An alternate county fee schedule shall be established based upon the actual cost to the county for providing a service for which a fee is charged. The county shall calculate actual costs by determining the average expenses necessary to provide the individual service over the previous two years for which the fee was charged. The amount of any new fee imposed by a county shall be set based upon a best estimate of the average expenses necessary to provide the individual service based upon fees charged by the county or other counties of the state for the provision of similar services. “Actual cost” means only those expenses directly attributable to the purpose for which the fee is collected. “Actual cost” shall not include costs such as employment benefits, depreciation, maintenance, utilities, or insurance associated with county operations.
   3.
  a.  Prior to adopting an ordinance pursuant to this section, the board of supervisors shall publish notice as provided in this subsection. The proposed ordinance shall, upon first reading, be placed on file with the county auditor for public inspection, and, upon second reading, if and as amended, shall be published in a newspaper of general circulation, together with the time and place for a public hearing on the proposed ordinance. The hearing shall be held not less than ten days prior to the board meeting at which the ordinance shall be placed upon its passage.
   b.  The notice shall include information on the actual cost of providing each service for which a fee is charged and on the proposed amount of each fee under the alternate county fee schedule.
   4.
  a.  A county that has adopted an alternate county fee schedule may review the fee schedule annually, but shall review the fee schedule at least once every two years, to review actual costs associated with each fee on the schedule or to add fees authorized by law to the fee schedule.
   b.  Following a review conducted pursuant to paragraph “a”, the board of supervisors shall, if determined necessary, amend the ordinance to update the alternate county fee schedule pursuant to subsections 2 and 3.
    Sec. 3.  Section 364.2, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  The city council may by ordinance adopt an alternate city fee schedule pursuant to section 364.2A.
    Sec. 4.  NEW SECTION.  364.2A  Alternate city fee structure.
   1.  Notwithstanding any other provision of the Code to the contrary, the city council may adopt an ordinance establishing an alternate city fee schedule. An alternate city fee schedule adopted pursuant to this section shall apply to all fees authorized to be collected by the city or by any officer of the city for providing a service, except that an alternate city fee schedule shall not include building permit fees or fees collected by the city when acting as an agent of the state for which the state provides a service or incurs a cost.
   2.  An alternate city fee schedule shall be established based upon the actual cost to the city for providing a service for which a fee is charged. The city shall calculate actual costs by determining the average expenses necessary to provide the individual service over the previous two years for which the fee was charged. The amount of any new fee imposed by a city shall be set based upon a best estimate of the average expenses necessary to provide the individual service based upon fees charged by the city or other cities of the state for the provision of similar services. “Actual cost” means only those expenses directly attributable to the purpose for which the fee is collected. “Actual cost” shall not include costs such as employment benefits, depreciation, maintenance, utilities, or insurance associated with city operations. 
   3.
  a.  Prior to adopting an ordinance pursuant to this section, the city council shall publish notice as provided in this subsection. The proposed ordinance shall, upon first reading, be placed on file with the clerk for public inspection, and, upon second reading, if and as amended, shall be published in a newspaper of general circulation, together with the time and place for a public hearing on the proposed ordinance. The hearing shall be held not less than ten days prior to the council meeting at which the ordinance shall be placed upon its passage.
   b.  The notice shall include information on the actual cost of providing each service for which a fee is charged and on the proposed amount of each fee under the alternate city fee schedule. 
   4.
  a.  A city that has adopted an alternate city fee schedule may review the fee schedule annually, but shall review the fee schedule at least once every two years, to review actual costs associated with each fee on the schedule or to add fees authorized by law to the fee schedule.
   b.  Following a review conducted pursuant to paragraph “a”, the city council shall, if determined necessary, amend the ordinance to update the alternate city fee schedule pursuant to subsections 2 and 3.
EXPLANATION
   This bill allows counties and cities to adopt alternate fee schedules for the provision of certain services. 
   The bill provides that a board of supervisors may adopt an ordinance to establish an alternate county fee schedule for all fees collected by a county for services, other than building permit fees and fees collected on behalf of the state. Each fee shall be calculated based upon the actual cost of providing the particular service for which the fee is charged. The bill requires that a county fulfill certain notice requirements, including publication of information regarding the actual cost of each service and the proposed amount of each fee, in the adoption of such an ordinance.
   The bill further provides that a city council may adopt an ordinance to establish an alternate city fee schedule for all fees collected by a city for services other than building permit fees and fees collected on behalf of the state. Each fee shall be calculated based upon the actual cost of providing the particular service for which the fee is based. The bill requires that a city fulfill certain notice requirements, including publication of information regarding the actual cost of each service and the proposed amount of each fee, in the adoption of such an ordinance.
   A city or county that has adopted an alternate county fee schedule is required to review the fee schedule at least once every two years to review actual costs associated with each fee, but the city or county may review the fee schedule each year. Following a review, the city council or board of supervisors shall amend the ordinance to update the fee schedule and may add fees authorized by law.
   The bill defines “actual cost” to mean only those expenses directly attributable to the purpose for which the fee is collected and shall not include costs such as employment benefits, depreciation, maintenance, utilities, or insurance associated with operations of the city or county, as applicable.