The proposed bill amends the Uniform Budgeting and Accounting Act by adding Section 13b, which establishes requirements for municipalities that impose a drainage fee generating significant revenue. Specifically, if a municipality collects more than $10 million or 5% of its general fund budget from drainage fees, it must create a separate, segregated account for these funds. The bill mandates that revenues from 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 and penalties for violations, such as warnings, fines, or 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 is empowered to create rules for implementing these provisions, ensuring that they do not conflict with the established limitations of the bill. The act will take effect 180 days after being enacted into law.

Statutes affected:
House Introduced Bill: 141.421, 141.440