H-1191

   Amend House File 564 as follows:
   1.  Page 8, after line 14 by inserting: 
<DIVISION ___
ENERGY MANAGEMENT IMPROVEMENTS
   Sec. ___.  Section 273.3, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  20A.  Be authorized to implement an energy management improvement as provided in section 279.48A.
   Sec. ___.  Section 279.48, subsection 2, Code 2017, is amended to read as follows:
   2.  The total of scheduled annual payments of principal or interest due and payable from current budgeted receipts or future budgeted receipts with respect to all loan agreements authorized under this section, section 279.48A, or section 285.10, subsection 7, paragraph “b”, must not exceed ten percent of the last authorized budget of the school corporation.
   Sec. ___.  NEW SECTION.  279.48A  Energy management improvements —— implementation.
   1.  The board of directors of a school corporation may implement an energy management improvement, as defined in section 473.19 and identified in an energy analysis done in conjunction with a municipal utility, and may negotiate and enter into a loan agreement and issue a note to pay for the energy management improvement, subject to the following terms and procedures:
   a.  The note must mature within ten years, or the useful life of the energy management improvement, whichever is less.
   b.  The note may bear interest at a rate to be determined by the board of directors in the manner provided in section 74A.3, subsection 1, paragraph “a”. Chapter 75 is not applicable.
   c.  The board of directors shall provide for the form of the agreement and note.
   d.  Principal and interest on the note may be payable from available funds as provided in section 298A.2, 298A.4, 298A.9, or 298A.10, or available revenues as provided in chapter 423F, for each year of a period of up to ten years.
   2.  The total of scheduled annual payments of principal or interest due and payable from current budgeted receipts or future budgeted receipts with respect to all loan agreements authorized under this section, section 279.48, or section 285.10, subsection 7, paragraph “b”, must not exceed ten percent of the last authorized budget of the school corporation.
   3.  Before entering into a loan agreement for an energy management improvement, the school corporation must publish a notice, including a statement of the amount and purpose of the agreement, at least once in a newspaper of general circulation within the school corporation at least ten days before the meeting at which the loan agreement is to be approved. 
   4.  This section shall not preclude a school corporation from obtaining a loan, lease, or other method of alternative financing under the energy loan program created in section 479.19 to implement energy management improvements or energy analyses in addition to entering into a loan agreement as provided in this section.
   Sec. ___.  Section 279.53, Code 2017, is amended to read as follows:
   279.53  Loan proceeds.
   The proceeds of loans issued to school districts pursuant to section 279.48, 279.48A, 279.52, or 473.20 shall be deposited into either the general fund of a school district or the physical plant and equipment levy fund. The board of directors shall expend the amount of the principal and interest due each year to maturity from the same fund into which the loan proceeds were deposited.>
   2.  By renumbering as necessary.

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NIELSEN of Johnson