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Committee OKs bill to require direct deposit of fuel turnback funds to municipalities

CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE · February 7, 2019
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Summary

House Bill 12‑28 would send fuel turnback money directly to the municipal account designated for that revenue so funds begin in the proper fund; sponsor and municipal league supported the change and audit had no objection.

Representative Fite told the committee HB 12‑28 would make fuel turnback payments direct deposits so the money is placed into the designated municipal fund from the outset rather than arriving as a check that might be deposited into a general account and later apportioned.

"It will be a direct deposit," Representative Fite said, arguing the change will help small cities and reduce errors from clerk turnover. He said the Municipal League added the measure to its package and audit had no objection.

Senator Flowers asked whether the direct deposit would prevent commingling and who would have authority to choose the account; Representative Fite said treasurers typically decide where to place funds and the bill will not cure all commingling issues but should help municipalities place funds correctly. The committee then moved and passed the bill by voice vote.