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 holding a public hearing to discuss the report.

The bill also outlines compliance measures, including random audits by the Department of Treasury and penalties for municipalities that fail to adhere to the new regulations. Violations can result in warnings, civil fines, or even suspension of the authority to collect drainage fees. Furthermore, if a municipality is found to have misclassified a drainage fee to avoid voter approval, it must refund the improperly collected fees to affected payers. The bill emphasizes transparency and accountability in the management of drainage fees, ensuring that municipalities are held responsible for their financial practices related to stormwater services.

Statutes affected:
House Introduced Bill: 141.421, 141.440