HCS/HB 1261 - This act requires the State Auditor to report to the Department of Revenue any transportation development district that fails to timely submit its annual financial statement to the State Auditor and the authorized amount of the fine. The Department of Revenue is required to collect the authorized fine and annually distribute the revenues, less a collection fee, to the schools of the county where the district is located in the same manner that fines for penal code violations are distributed. This act also requires the board of directors of a district to notify the State Auditor when a district has been established at its first meeting. The actual costs of a statutorily required or petition audit of a district performed by the State Auditor must be paid by the district and cannot exceed the greater of 3% of the district's gross revenues or 3% of its expenditures.MICHELA BIRK