Senate File 2323 H-8262 Amend Senate File 2323, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. Page 34, after line 6 by inserting: 3 < DIVISION ___ 4 SCHOOL DISTRICT BUDGET ADJUSTMENT 5 Sec. ___. Section 257.2, subsection 2, Code 2016, 6 is amended by striking the subsection. 7 Sec. ___. Section 257.4, subsection 1, paragraph 8 a, Code 2016, is amended by adding the following new 9 subparagraph: 10 NEW SUBPARAGRAPH . (10) The amount of revenue 11 received from the secure an advanced vision for 12 education fund and approved by the school district for 13 reducing the school district’s additional property tax 14 levy pursuant to a revenue purpose statement adopted 15 under section 423F.3. 16 Sec. ___. NEW SECTION . 257.14A District cost per 17 pupil equity —— budget adjustment. 18 1. The board of directors of a school district 19 with a regular program district cost per pupil that is 20 less than the highest regular program district cost 21 per pupil among all school districts in the state for 22 the same budget year that wishes to receive the budget 23 adjustment under this section may adopt a resolution 24 by May 15 preceding the budget year and shall notify 25 the department of management of the adoption of the 26 resolution and the amount of the budget adjustment to 27 be received. 28 2. a. For budget years beginning on or after 29 July 1, 2017, each school district that satisfies the 30 requirements of subsection 1 shall be eligible for a 31 budget adjustment for that budget year in an amount not 32 to exceed the difference between the school district’s 33 regular program district cost per pupil and the 34 highest regular program district cost per pupil among 35 -1- SF2323.3716 (1) 86 md/sc 1/ 6 #1.

all school districts in the state multiplied by the 1 district’s budget enrollment. The resolution adopted 2 under subsection 1 may specify a budget adjustment 3 amount that is less than the maximum amount authorized 4 under this paragraph “ a ”. 5 b. The school district shall fund the budget 6 adjustment solely using moneys from its distribution of 7 moneys received from the secure an advanced vision for 8 education fund under section 423F.3 and authorized for 9 such purpose by a revenue purpose statement. Amounts 10 used to fund the budget adjustment may be used by the 11 school district for any school general fund purpose. 12 3. A budget adjustment received under this section 13 shall not affect the eligibility for or amount of any 14 other budget adjustment authorized by law for the same 15 budget year. In addition, a budget adjustment under 16 this section shall be limited to the budget year for 17 which the adjustment was authorized and shall not be 18 included in any computation of a school district’s cost 19 for any future budget year. 20 Sec. ___. Section 423.2, subsection 11, paragraph 21 b, subparagraph (3), Code 2016, is amended to read as 22 follows: 23 (3) Transfer one-sixth of the remaining revenues 24 to the secure an advanced vision for education fund 25 created in section 423F.2 . This subparagraph (3) is 26 repealed December 31, 2029 January 1, 2050 . 27 Sec. ___. Section 423.2, subsection 14, Code 2016, 28 is amended to read as follows: 29 14. The sales tax rate of six percent is reduced to 30 five percent beginning on January 1, 2030 2050 . 31 Sec. ___. Section 423.5, subsection 5, Code 2016, 32 is amended to read as follows: 33 5. The use tax rate of six percent is reduced to 34 five percent beginning on January 1, 2030 2050 . 35 -2- SF2323.3716 (1) 86 md/sc 2/ 6

Sec. ___. Section 423.43, subsection 1, paragraph 1 b, Code 2016, is amended to read as follows: 2 b. Subsequent to the deposit into the general fund 3 of the state and after the transfer of such revenues 4 collected under chapter 423B , the department shall 5 transfer one-sixth of such remaining revenues to the 6 secure an advanced vision for education fund created in 7 section 423F.2 . This paragraph is repealed December 8 31, 2029 January 1, 2050 . 9 Sec. ___. Section 423F.1, Code 2016, is amended to 10 read as follows: 11 423F.1 Legislative intent. 12 It is the intent of the general assembly that the 13 increase in the state sales, services, and use taxes 14 under chapter 423, subchapters II and III , from five 15 percent to six percent on July 1, 2008, shall be used 16 solely for purposes of providing revenues to local 17 school districts under this chapter to be used solely 18 for school infrastructure purposes , or school district 19 property tax relief , and school district budget 20 adjustments under section 254.14A . 21 Sec. ___. Section 423F.3, subsection 1, paragraph 22 d, Code 2016, is amended to read as follows: 23 d. For any authorized school infrastructure 24 purpose or project of the school district as defined 25 in subsection 6 , excluding purposes specified in 26 subsection 6, paragraph “0d” , if the total cost of the 27 authorized infrastructure purpose does not exceed three 28 million dollars . 29 Sec. ___. Section 423F.3, subsection 3, paragraph 30 b, Code 2016, is amended to read as follows: 31 b. If the board of directors intends to use funds 32 for purposes or projects other than those listed in 33 paragraph “a” , or change the use of funds to purposes 34 or projects other than those listed in paragraph “a” , 35 -3- SF2323.3716 (1) 86 md/sc 3/ 6

the board shall adopt a revenue purpose statement 1 or amend an existing revenue purpose statement , 2 subject to approval of the electors, listing the 3 proposed use of the funds. If the board of directors 4 intends to use funds for a school infrastructure 5 purpose or project that was approved by the board 6 on or after July 1, 2016, the total cost of which 7 exceeds three million dollars, the board shall adopt 8 a revenue purpose statement or amend an existing 9 revenue purpose statement, subject to approval of the 10 electors, to specifically authorize the use of funds 11 for that school infrastructure purpose or project. 12 Both the ballot presented to the electors and the 13 revenue purpose statement shall describe each school 14 infrastructure purpose or project that has a total cost 15 exceeding three million dollars, specify the estimated 16 commencement and completion dates for each such purpose 17 or project, and specify a maximum amount of funds 18 received under this section that may be used for each 19 such purpose or project. School districts shall submit 20 the statement to the voters no later than sixty days 21 prior to the expiration of any existing revenue purpose 22 statement or change in use not included in the existing 23 revenue purpose statement. 24 Sec. ___. Section 423F.3, subsection 6, Code 2016, 25 is amended by adding the following new paragraph: 26 NEW PARAGRAPH . 0d. For school budget years 27 beginning on or after July 1, 2017, “school 28 infrastructure” includes any of the following if 29 specified in a revenue purpose statement approved at 30 election: 31 (1) If a school district’s average transportation 32 costs per pupil exceed the state average transportation 33 costs per pupil determined under section 257.31, 34 subsection 17, paragraph “c” , the payment of school 35 -4- SF2323.3716 (1) 86 md/sc 4/ 6

district transportation costs not to exceed an amount 1 equal to the district’s actual enrollment for the 2 school year multiplied by the difference between the 3 district’s average transportation costs per pupil and 4 the state average transportation costs per pupil for 5 the school year. 6 (2) Funding a district cost per pupil equity budget 7 adjustment under section 257.14A. 8 (3) Reduction of the school district’s additional 9 property tax levy under section 257.4. 10 Sec. ___. Section 423F.3, subsection 7, Code 2016, 11 is amended to read as follows: 12 7. The general assembly shall not alter the 13 purposes for which the revenues received under this 14 section may be used from infrastructure and purposes, 15 property tax relief purposes , and budget adjustment 16 purposes under section 257.14A to any other purpose 17 unless the bill is approved by a vote of at least 18 two-thirds of the members of both chambers of the 19 general assembly and is signed by the governor. 20 Sec. ___. Section 423F.6, Code 2016, is amended to 21 read as follows: 22 423F.6 Repeal. 23 This chapter is repealed December 31, 2029 January 24 1, 2050 . 25 Sec. ___. IMPLEMENTATION. The approval requirement 26 of section 423F.3, subsection 7, Code 2016, shall not 27 apply to this division of this Act. > 28 2. Title page, line 5, after < matters, > by 29 inserting < modifying provisions relating to the secure 30 an advanced vision for education fund, > 31 3. By renumbering, redesignating, and correcting 32 internal references as necessary. 33 -5- SF2323.3716 (1) 86 md/sc 5/ 6 #2.