House Study Bill 235 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to the authority and duties of the auditor of 1 state by modifying provisions relating to the collection 2 of certain fees and the provision of municipal financial 3 management training and including applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2766YC (2) 88 md/jh
H.F. _____ Section 1. Section 11.6, subsection 11, paragraph a, Code 1 2019, is amended to read as follows: 2 a. The auditor of state shall adopt rules in accordance with 3 chapter 17A to establish and collect a periodic examination 4 fee from cities that are not required to have an audit or 5 required fiscal year examination conducted pursuant to 6 subsection 1 during a fiscal year. Such fees are due on March 7 31 each year. The auditor of state shall base the periodic 8 examination fees on established by the auditor of state 9 shall be on a sliding scale , based on the city’s budgeted 10 gross expenditures , to produce total revenue of not more than 11 three hundred seventy-five thousand dollars for each fiscal 12 year . However, cities that pay a filing fee for an audit or 13 examination pursuant to subsection 10 during the fiscal year 14 are not required to pay the periodic examination fee. The 15 funds collected shall be maintained in a segregated account 16 for use by the office of the auditor of state in performing 17 periodic examinations conducted pursuant to subsection 1 . 18 However, if the fees collected in one fiscal year exceed three 19 hundred seventy-five thousand dollars, the The auditor of 20 state shall apply the excess funds to provide training to city 21 officials on municipal financial management or shall contract 22 with a qualified organization to provide such training. 23 Notwithstanding section 8.33 , any fees collected by the auditor 24 of state for these purposes that remain unexpended at the end 25 of the fiscal year shall not revert to the general fund of the 26 state or any other fund but shall remain available for use for 27 the following fiscal year for the purposes authorized in this 28 subsection . 29 Sec. 2. APPLICABILITY. This Act applies to fiscal years 30 beginning on or after July 1, 2019. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 Code section 11.6(11) authorizes the auditor of state to 35 -1- LSB 2766YC (2) 88 md/jh 1/ 2
H.F. _____ establish and collect a periodic examination fee from cities 1 that are not required to have an audit or required fiscal year 2 examination during a fiscal year. The auditor of state is 3 required to base the fees on a sliding scale, based on the 4 city’s budgeted gross expenditures, to produce total revenue 5 of not more than $375,000 for each fiscal year. Current law 6 also requires the auditor of state to provide or contract for 7 training to city officials on municipal financial management if 8 the periodic examination fees collected in a fiscal year exceed 9 $375,000. 10 This bill eliminates the $375,000 cap on total periodic 11 examination fees collected by the auditor of state. The 12 bill also removes the prerequisite of exceeding the $375,000 13 periodic examination fee threshold in order to require the 14 auditor of state to provide or contract for training to city 15 officials on municipal financial management. 16 The bill applies to fiscal years beginning on or after July 17 1, 2019. 18 -2- LSB 2766YC (2) 88 md/jh 2/ 2