The proposed bill amends the Uniform Budgeting and Accounting Act to introduce new regulations regarding drainage fees imposed by municipalities. Specifically, if a municipality collects more than $10 million or 5% of its general fund budget from drainage fees, it must establish a separate, segregated account for these revenues. The bill mandates that funds in this account cannot be mixed with the general fund and can only be used for costs directly related to stormwater or drainage services. Additionally, municipalities are required to publish an annual report detailing revenue, expenditures, and the proportionality of the drainage fee to the services provided, along with a public hearing to discuss the report.

The bill also outlines compliance measures, including random audits by the Department of Treasury and penalties for violations, such as fines and potential suspension of the authority to collect drainage fees. If a municipality is found to have misclassified a drainage fee to avoid voter approval, it must refund the improperly collected fees. The Department of Treasury is given the authority to create rules for implementing these provisions, ensuring that they do not conflict with the established limitations of the bill. Overall, the legislation aims to enhance transparency and accountability in the management of drainage fees by municipalities.

Statutes affected:
House Introduced Bill: 141.421, 141.440