Northeast News

June 29, 2016

KANSAS CITY, Missouri – Governor Jay Nixon was at Union Station in Kansas City on Wednesday, June 29 to sign legislation designed to empower State Auditor Nicole Galloway in conducting audits of Community Improvement Districts.

Nixon signed bi-partisan Senate Bill 1002 after a brief press conference. Currently, state law only allows the State Auditor to audit a CID if a citizen’s petition has been filed by local residents. Without a citizen’s petition, the State Auditor is only allowed to conduct audits of CIDs at the request from the Governor. In short, Senate Bill 1002 ensures that Missouri’s roughly 360 CIDs are operating as intended. Nixon noted that Galloway’s request for more authority over CID was met with wide support.

“When I announced Nicole as State Auditor in April of 2015, I said that Missouri needed a strong watchdog to look after taxpayers, and she has performed above and beyond,” said Nixon. “That’s why when she approached the legislature this year about strengthening oversight for special taxing districts, the issue would would go on to receive nearly unanimous support on both sides of the aisle.”

Nixon also signed House Bill 1418 during the visit to Union Station. The bill creates a process by which Transportation Development Districts (TDD) can be fined for failing to deliver annual financial statements with the State Auditor’s Office. Current law does not explicitly include a process for collecting those fines. Nixon noted that 49 of Missouri’s 176 Transportation Development District’s were either filed late or were never submitted at all.

“Right now state law says that if one of these districts fails to submit these reports, then a district can be fined,” said Nixon. “But the law doesn’t say who collects the fines.”

House Bill 1418 dictates that the State Auditor will inform the Department of Revenue if a TDD has not filed an annual statement. If the TDD does not respond to a notice from the Department of Revenue, a fine of $500 per day can now be imposed.