*105.145.  Political subdivisions to make annual report of financial transactions to state auditor — state auditor to report violations — collection of fines, exemption — downward adjustments to outstanding balances and penalties, when. — 1.  The following definitions shall be applied to the terms used in this section:

  (1)  "Governing body", the board, body, or persons in which the powers of a political subdivision as a body corporate, or otherwise, are vested;

  (2)  "Political subdivision", any agency or unit of this state, except counties and school districts, which now is, or hereafter shall be, authorized to levy taxes or empowered to cause taxes to be levied.

  2.  The governing body of each political subdivision in the state shall cause to be prepared an annual report of the financial transactions of the political subdivision in such summary form as the state auditor shall prescribe by rule, except that the annual report of political subdivisions whose cash receipts for the reporting period are ten thousand dollars or less shall only be required to contain the cash balance at the beginning of the reporting period, a summary of cash receipts, a summary of cash disbursements and the cash balance at the end of the reporting period.

  3.  Within such time following the end of the fiscal year as the state auditor shall prescribe by rule, the governing body of each political subdivision shall cause a copy of the annual financial report to be remitted to the state auditor.

  4.  The state auditor shall immediately on receipt of each financial report acknowledge the receipt of the report.

  5.  In any fiscal year no member of the governing body of any political subdivision of the state shall receive any compensation or payment of expenses after the end of the time within which the financial statement of the political subdivision is required to be filed with the state auditor and until such time as the notice from the state auditor of the filing of the annual financial report for the fiscal year has been received.

  6.  The state auditor shall prepare sample forms for financial reports and shall mail the same to the political subdivisions of the state.  Failure of the auditor to supply such forms shall not in any way excuse any person from the performance of any duty imposed by this section.

  7.  All reports or financial statements hereinabove mentioned shall be considered to be public records.

  8.  The provisions of this section apply to the board of directors of every transportation development district organized under sections 238.200 to 238.275.

  9.  Any political subdivision that fails to timely submit a copy of the annual financial statement to the state auditor shall be subject to a fine of five hundred dollars per day.

  10.  The state auditor shall report any violation of subsection 9 of this section to the department of revenue.  Upon notification from the state auditor's office that a political subdivision failed to timely submit a copy of the annual financial statement, the department of revenue shall notify such political subdivision by certified mail that the statement has not been received.  Such notice shall clearly set forth the following:

  (1)  The name of the political subdivision;

  (2)  That the political subdivision shall be subject to a fine of five hundred dollars per day if the political subdivision does not submit a copy of the annual financial statement to the state auditor's office within thirty days from the postmarked date stamped on the certified mail envelope;

  (3)  That the fine will be enforced and collected as provided under subsection 11 of this section; and

  (4)  That the fine will begin accruing on the thirty-first day from the postmarked date stamped on the certified mail envelope and will continue to accrue until the state auditor's office receives a copy of the financial statement.

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In the event a copy of the annual financial statement is received within such thirty-day period, no fine shall accrue or be imposed.  The state auditor shall report receipt of the financial statement to the department of revenue within ten business days.  Failure of the political subdivision to submit the required annual financial statement within such thirty-day period shall cause the fine to be collected as provided under subsection 11 of this section.

  11.  The department of revenue may collect the fine authorized under the provisions of subsection 9 of this section by offsetting any sales or use tax distributions due to the political subdivision.  The director of revenue shall retain two percent for the cost of such collection.  The remaining revenues collected from such violations shall be distributed annually to the schools of the county in the same manner that proceeds for all penalties, forfeitures, and fines collected for any breach of the penal laws of the state are distributed.

  12.  Any political subdivision that has gross revenues of less than five thousand dollars or that has not levied or collected taxes in the fiscal year for which the annual financial statement was not timely filed shall not be subject to the fine authorized in this section.

  13.  If a failure to timely submit the annual financial statement is the result of fraud or other illegal conduct by an employee or officer of the political subdivision, the political subdivision shall not be subject to a fine authorized under this section if the statement is filed within thirty days of the discovery of the fraud or illegal conduct.  If a fine is assessed and paid prior to the filing of the statement, the department of revenue shall refund the fine upon notification from the political subdivision.

  14.  If a political subdivision has an outstanding balance for fines or penalties at the time it files its first annual financial statement after January 1, 2023, the director of revenue shall make a one-time downward adjustment to such outstanding balance in an amount that reduces the outstanding balance by no less than ninety percent.

  15.  The director of revenue shall have the authority to make a one-time downward adjustment to any outstanding penalty imposed under this section on a political subdivision if the director determines the fine is uncollectable.  The director of revenue may prescribe rules and regulations necessary to carry out the provisions of this subsection.  Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.  This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2022, shall be invalid and void.