Bill Summary – FastDemocracy

Fiscal Note
                                        Fiscal Services Division
SF 546 – Posting of Statutorily Required Public Notices (LSB2387SZ)
Staff Contact: Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 546 requires the Secretary of State (SOS) to create an online portal on which a
public posting entity must post all statutorily required public notices. A public posting entity is
also permitted to post a statutorily required public notice on an official Internet site, an official
social media account, or in an official newspaper. A “public posting entity” is defined as the
following: the State of Iowa, an Iowa city, an Iowa county, an Iowa public school district, or an
Iowa private or public agency as defined in Iowa Code section 28E.2. The Bill requires the SOS
to collect a fee of $5 from a public posting entity for each notice posted by the entity. Moneys
collected by the SOS are to be deposited into the Business Administration Fund. The Bill is
effective on July 1, 2024, but allows the SOS to adopt administrative rules prior to this date.
Background
Current law requires certain governmental entities to publish public notices in newspapers,
given proper circulation within the municipality, and a governmental entity’s Internet site if the
governmental entity maintains an Internet site. The Business Administration Fund is composed
of moneys collected in surcharges implemented, assessed, and collected by the SOS. Moneys
in the Business Administration Fund are appropriated to the Office of the SOS to support the
administration of the Office. Currently, Iowa counties pay approximately $50 to $250 per
publication of a required public notice in a county newspaper.
The Technology Modernization Fund under the control of the SOS is to be appropriated to the
SOS for purposes of modernizing their Business Services Division. Funds are available to the
SOS until June 30, 2026, or until fully expended. As of March 27, 2023, approximately $3.8
million was available in the Fund.
Assumptions
• According to the SOS, the implementation of the Bill is dependent on the capability of the
   online portal system with the SOS’s current Fast Tracking Filing System, with a one-time
   cost between $150,000 and $500,000 to be funded by the Technology Modernization Fund.
• The SOS’s new online portal will need ongoing maintenance and additional full-time
   equivalent (FTE) positions. Ongoing costs will be approximately $500,000 per fiscal year
   and are to be funded by the revenue generated by the new $5 fee charged by the SOS to
   public posting entities. The fee will be deposited into the Business Administration Fund.
• The SOS estimates needing $215,000 and 3.0 full-time equivalent (FTE) positions to
   administer the program.
                                        SOS FTE Positions
                              Position Title             Salary
                              Software Developer 1        $ 82,000
                              Help Desk Technician 1        65,000
                              Training Specialist           68,000
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•   Total fee revenue that governmental entities will pay to the SOS is unknown.
•   The number of counties that will no longer publish required public notices in county
    newspapers cannot be estimated.
Fiscal Impact
The one-time cost to implement the online portal will be between $150,000 and $500,000. This
cost will be funded from the Technology Modernization Fund in FY 2024. Annual maintenance
of the database and additional FTE positions will cost approximately $500,000 beginning in
FY 2024 and will be funded from the Business Administration Fund. The Bill will increase
revenue to the SOS by an unknown amount. The Bill will reduce expenditures for local entities
by an unknown amount.
Sources
Secretary of State Office
Iowa State Association of Counties
Legislative Services Agency analysis
                                                                               /s/ Jennifer Acton
                                                                                 April 20, 2023
Doc ID 1371101
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
                                                 www.legis.iowa.gov
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Statutes affected: 
Introduced: 6B.2A, 28E.2, 24.3, 26A.3, 49.53, 69.2, 256.11, 260C.14, 279.35, 331.302, 331.305, 349.18, 358.40, 362.3, 364.2, 368.7, 384.16, 384.15A, 423F.3, 39.2, 455B.305A, 459.304, 465C.11, 533.320, 556.12
Reprinted: 75.2, 273.3, 273.1, 279.36, 618.11, 618.3