1. Special districts, cities, townships in township organization counties, villages and the state shall pay the election costs required by sections 115.063 to 115.077 to each election authority conducting its elections.

2. If the state is required to pay election costs pursuant to sections 115.063 to 115.065, the state shall, not later than the seventh Tuesday prior to any such election, pay each election authority conducting its elections an amount determined by the office of the secretary of state, in consultation with the election authority, to be a reasonable estimate of the cost of conducting such election, using a method developed by the secretary of state, in consultation with election authority, that is reviewed at least every two years.

3. Not later than the fifth Tuesday prior to any election to be conducted for a special district or political subdivision, the election authority shall submit the estimated cost of conducting the election for each political subdivision and special district submitting a candidate or question at the election. Not later than the third Tuesday prior to the election, each special district and political subdivision submitting a candidate or question at the election, except the county, shall deposit with the election authority an amount equal to the estimated cost of conducting the election for the political subdivision or special district.

4. All payments of election costs received by an election authority under the provisions of this section shall be placed by the election authority in a special account and used by the election authority only to pay the costs incurred in conducting the election. Not later than the tenth Tuesday following an election, if the amount paid to an election authority by the state or any political subdivision or special district exceeds the cost of conducting the election for the state, political subdivision or special district, the election authority shall refund to the state, political subdivision or special district the difference between the amount deposited with it and the cost of conducting the election. Not later than the tenth Tuesday following an election, if the amount deposited with an election authority by the state or any political subdivision or special district is less than the cost of conducting the election, the election authority shall submit a request to the state and each political subdivision and special district for the difference between the amount deposited and the cost of conducting the election.

5. (1) Within two weeks of receipt of actual cost and required documentation of actual expenses from the election authority, the state, political subdivision, or special district shall approve for payment the difference between the amount deposited and the cost of conducting the election.

(2) For the purposes of this section, the term “required documentation” shall mean a detailed list of expenses that the secretary of state intends to reimburse the election authority for and a detailed description of the documentation that the election authority shall produce following the election. For any election in which the state is required to pay all or a proportion of the cost, the secretary of state shall, not later than the eleventh Tuesday prior to the election or, in case of a special election, no later than five business days following the issuance of a writ of election by the governor, transmit to the election authority the detailed list and description described above.

6. Except as provided in sections 115.063 to 115.072^*, all payments of election costs received by an election authority under the provisions of this section shall be placed by the election authority in a special account and used by the election authority only to pay the costs incurred in conducting elections.

7. When the state or any political subdivision or special district willfully fails to make payment of an election cost required by this subchapter by the time provided in this subchapter, it shall pay a penalty of fifty dollars for each day after the time provided in this subchapter proper payment is not made. Any such penalty shall be payable to the election authority authorized to receive payment of the election cost and shall be deposited in the general revenue fund of such election authority’s city or county. For purposes of this subsection, the state shall not be considered to have willfully failed to make payment of an election cost if there is not sufficient cash or appropriation authority to make such a payment.

8. (1) There is hereby created the “State Election Subsidy Fund” in the state treasury.

(2) All unobligated funds in the state election subsidy fund on January 1, 2019, shall be transferred to the elections administration improvements fund authorized pursuant to section 115.078. To meet the state’s funding obligation to maintain expenditures pursuant to Section 254(a)(7) of the Help America Vote Act of 2002, the commissioner of the office of administration shall annually transfer from general revenue to the election administration improvements^** fund, established pursuant to section 115.078, an amount not less than the amount expended in the fiscal year that ended June 30, 2000. Any other law to the contrary notwithstanding, the funds received pursuant to Sections 251 and 252 of the Help America Vote Act of 2002 shall be expended according to the state plan developed pursuant to the provisions of Section 254 of said act. The secretary of state shall develop the state plan through the committee appointed by the secretary of state under the provisions of Section 255 of the Help America Vote Act of 2002.

9. An election authority may rent or lease out any electronic voting machine purchased by such election authority.