House File 2663 - Enrolled

PAG LIN



  1  1                                             HOUSE FILE 2663
  1  2
  1  3                             AN ACT
  1  4 RELATING TO THE REPEAL OF THE LOCAL OPTION SALES AND SERVICES
  1  5    TAX FOR SCHOOL INFRASTRUCTURE PURPOSES BY USING THE REVE-
  1  6    NUES FROM THE INCREASE IN THE STATE SALES AND USE TAXES
  1  7    FOR REPLACING LOST SCHOOL DISTRICT REVENUES RESULTING FROM
  1  8    THE REPEAL, PROVIDING PROPERTY TAX RELIEF, PROVIDING FOR
  1  9    THE REDUCTION IN THE STATE SALES AND USE TAX, PROVIDING A
  1 10    PENALTY, AND INCLUDING AN EFFECTIVE DATE PROVISION.
  1 11
  1 12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 13
  1 14    Section 1.  Section 257.4, subsection 1, paragraph b, Code
  1 15 2007, is amended to read as follows:
  1 16    b.  For the budget year beginning July 1, 2006 2008, and
  1 17 succeeding budget years, the department of management shall
  1 18 annually determine an adjusted additional property tax levy
  1 19 and a statewide maximum adjusted additional property tax levy
  1 20 rate, not to exceed the statewide average additional property
  1 21 tax levy rate, calculated by dividing the total adjusted
  1 22 additional property tax levy dollars statewide by the
  1 23 statewide total net taxable valuation.  For purposes of this
  1 24 paragraph, the adjusted additional property tax levy shall be
  1 25 that portion of the additional property tax levy corresponding
  1 26 to the state cost per pupil multiplied by a school district's
  1 27 weighted enrollment, and then multiplied by one hundred
  1 28 percent less the regular program foundation base per pupil
  1 29 percentage pursuant to section 257.1.  The district shall
  1 30 receive adjusted additional property tax levy aid in an amount
  1 31 equal to the difference between the adjusted additional
  1 32 property tax levy rate and the statewide maximum adjusted
  1 33 additional property tax levy rate, as applied per thousand
  1 34 dollars of assessed valuation on all taxable property in the
  1 35 district.  The statewide maximum adjusted additional property
  2  1 tax levy rate shall be annually determined by the department
  2  2 taking into account amounts allocated pursuant to section
  2  3 257.15, subsection 4.  The statewide maximum adjusted
  2  4 additional property tax levy rate shall be annually determined
  2  5 by the department taking into account amounts allocated
  2  6 pursuant to section 257.15, subsection 4, and the balance of
  2  7 the property tax equity and relief fund created in section
  2  8 257.16A at the end of the calendar year.
  2  9    Sec. 2.  Section 257.15, subsection 4, Code 2007, is
  2 10 amended to read as follows:
  2 11    4.  a.  ALLOCATIONS FOR MAXIMUM ADJUSTED ADDITIONAL
  2 12 PROPERTY TAX LEVY RATE CALCULATION AND ADJUSTED ADDITIONAL
  2 13 PROPERTY TAX LEVY AID.  The department of management shall
  2 14 allocate from amounts appropriated pursuant to section 257.16,
  2 15 subsection 1, and from funds appropriated from the property
  2 16 tax equity and relief fund created in section 257.16A for the
  2 17 purpose of calculating the statewide maximum adjusted
  2 18 additional property tax levy rate and providing adjusted
  2 19 additional property tax levy aid as provided in section 257.4,
  2 20 subsection 1, paragraph "b", an amount not to exceed the
  2 21 following equal to the sum of subparagraphs (1) and (2) as
  2 22 follows:
  2 23    (1)  From the amount appropriated from the general fund of
  2 24 the state pursuant to section 257.16, subsection 1, equal to
  2 25 the following:
  2 26    a. (a)  For the budget year beginning July 1, 2006, six
  2 27 million dollars.
  2 28    b. (b)  For the budget year beginning July 1, 2007, twelve
  2 29 million dollars.
  2 30    c. (c)  For the budget year beginning July 1, 2008,
  2 31 eighteen million dollars.
  2 32    d. (d)  For the budget year beginning July 1, 2009, and
  2 33 succeeding budget years, twenty=four million dollars.
  2 34    (2)  From the amount appropriated from the property tax
  2 35 equity and relief fund created in section 257.16A.
  3  1    b.  After lowering all school district additional property
  3  2 tax levy rates to the statewide maximum adjusted additional
  3  3 property tax levy rate under paragraph "a", the department of
  3  4 management shall use any remaining funds at the end of the
  3  5 calendar year to further lower additional property taxes by
  3  6 increasing for the budget year beginning the following July 1,
  3  7 the state foundation base percentage.  Moneys used pursuant to
  3  8 this paragraph shall supplant an equal amount of the
  3  9 appropriation made from the general fund of the state pursuant
  3 10 to section 257.16 that represents the increase in state
  3 11 foundation aid.
  3 12    Sec. 3.  NEW SECTION.  257.16A  PROPERTY TAX EQUITY AND
  3 13 RELIEF FUND.
  3 14    1.  A property tax equity and relief fund is created as a
  3 15 separate and distinct fund in the state treasury under the
  3 16 control of the department of management.  Moneys in the fund
  3 17 include revenues credited to the fund, appropriations made to
  3 18 the fund, and other moneys deposited into the fund.
  3 19    2.  There is appropriated annually all moneys in the fund
  3 20 to the department of management for purposes of section
  3 21 257.15, subsection 4.
  3 22    3.  Notwithstanding section 8.33, any moneys remaining in
  3 23 the property tax equity and relief fund at the end of a fiscal
  3 24 year shall not revert to any other fund but shall remain in
  3 25 the property tax equity and relief fund for use as provided in
  3 26 this section for the following fiscal year.
  3 27    Sec. 4.  Section 423.2, subsection 1, unnumbered paragraph
  3 28 1, Code Supplement 2007, is amended to read as follows:
  3 29    There is imposed a tax of five six percent upon the sales
  3 30 price of all sales of tangible personal property, consisting
  3 31 of goods, wares, or merchandise, sold at retail in the state
  3 32 to consumers or users except as otherwise provided in this
  3 33 subchapter.
  3 34    Sec. 5.  Section 423.2, subsections 2, 3, 4, and 5, Code
  3 35 Supplement 2007, are amended to read as follows:
  4  1    2.  A tax of five six percent is imposed upon the sales
  4  2 price of the sale or furnishing of gas, electricity, water,
  4  3 heat, pay television service, and communication service,
  4  4 including the sales price from such sales by any municipal
  4  5 corporation or joint water utility furnishing gas,
  4  6 electricity, water, heat, pay television service, and
  4  7 communication service to the public in its proprietary
  4  8 capacity, except as otherwise provided in this subchapter,
  4  9 when sold at retail in the state to consumers or users.
  4 10    3.  A tax of five six percent is imposed upon the sales
  4 11 price of all sales of tickets or admissions to places of
  4 12 amusement, fairs, and athletic events except those of
  4 13 elementary and secondary educational institutions.  A tax of
  4 14 five six percent is imposed on the sales price of an entry fee
  4 15 or like charge imposed solely for the privilege of
  4 16 participating in an activity at a place of amusement, fair, or
  4 17 athletic event unless the sales price of tickets or admissions
  4 18 charges for observing the same activity are taxable under this
  4 19 subchapter.  A tax of five six percent is imposed upon that
  4 20 part of private club membership fees or charges paid for the
  4 21 privilege of participating in any athletic sports provided
  4 22 club members.
  4 23    4.  A tax of five six percent is imposed upon the sales
  4 24 price derived from the operation of all forms of amusement
  4 25 devices and games of skill, games of chance, raffles, and
  4 26 bingo games as defined in chapter 99B, and card game
  4 27 tournaments conducted under section 99B.7B, that are operated
  4 28 or conducted within the state, the tax to be collected from
  4 29 the operator in the same manner as for the collection of taxes
  4 30 upon the sales price of tickets or admission as provided in
  4 31 this section.  Nothing in this subsection shall legalize any
  4 32 games of skill or chance or slot=operated devices which are
  4 33 now prohibited by law.
  4 34    The tax imposed under this subsection covers the total
  4 35 amount from the operation of games of skill, games of chance,
  5  1 raffles, and bingo games as defined in chapter 99B, card game
  5  2 tournaments conducted under section 99B.7B, and musical
  5  3 devices, weighing machines, shooting galleries, billiard and
  5  4 pool tables, bowling alleys, pinball machines, slot=operated
  5  5 devices selling merchandise not subject to the general sales
  5  6 taxes and on the total amount from devices or systems where
  5  7 prizes are in any manner awarded to patrons and upon the
  5  8 receipts from fees charged for participation in any game or
  5  9 other form of amusement, and generally upon the sales price
  5 10 from any source of amusement operated for profit, not
  5 11 specified in this section, and upon the sales price from which
  5 12 tax is not collected for tickets or admission, but tax shall
  5 13 not be imposed upon any activity exempt from sales tax under
  5 14 section 423.3, subsection 78.  Every person receiving any
  5 15 sales price from the sources described in this section is
  5 16 subject to all provisions of this subchapter relating to
  5 17 retail sales tax and other provisions of this chapter as
  5 18 applicable.
  5 19    5.  There is imposed a tax of five six percent upon the
  5 20 sales price from the furnishing of services as defined in
  5 21 section 423.1.
  5 22    Sec. 6.  Section 423.2, subsection 7, paragraph a,
  5 23 unnumbered paragraph 1, Code Supplement 2007, is amended to
  5 24 read as follows:
  5 25    A tax of five six percent is imposed upon the sales price
  5 26 from the sales, furnishing, or service of solid waste
  5 27 collection and disposal service.
  5 28    Sec. 7.  Section 423.2, subsection 8, paragraph a, Code
  5 29 Supplement 2007, is amended to read as follows:
  5 30    a.  A tax of five six percent is imposed on the sales price
  5 31 from sales of bundled transactions.  For the purposes of this
  5 32 subsection, a "bundled transaction" is the retail sale of two
  5 33 or more distinct and identifiable products, except real
  5 34 property and services to real property, which are sold for one
  5 35 nonitemized price.  A "bundled transaction" does not include
  6  1 the sale of any products in which the sales price varies, or
  6  2 is negotiable, based on the selection by the purchaser of the
  6  3 products included in the transaction.
  6  4    Sec. 8.  Section 423.2, subsection 9, Code Supplement 2007,
  6  5 is amended to read as follows:
  6  6    9.  A tax of five six percent is imposed upon the sales
  6  7 price from any mobile telecommunications service which this
  6  8 state is allowed to tax by the provisions of the federal
  6  9 Mobile Telecommunications Sourcing Act, Pub. L. No. 106=252, 4
  6 10 U.S.C. } 116 et seq.  For purposes of this subsection, taxes
  6 11 on mobile telecommunications service, as defined under the
  6 12 federal Mobile Telecommunications Sourcing Act that are deemed
  6 13 to be provided by the customer's home service provider, shall
  6 14 be paid to the taxing jurisdiction whose territorial limits
  6 15 encompass the customer's place of primary use, regardless of
  6 16 where the mobile telecommunications service originates,
  6 17 terminates, or passes through and shall in all other respects
  6 18 be taxed in conformity with the federal Mobile
  6 19 Telecommunications Sourcing Act.  All other provisions of the
  6 20 federal Mobile Telecommunications Sourcing Act are adopted by
  6 21 the state of Iowa and incorporated into this subsection by
  6 22 reference.  With respect to mobile telecommunications service
  6 23 under the federal Mobile Telecommunications Sourcing Act, the
  6 24 director shall, if requested, enter into agreements consistent
  6 25 with the provisions of the federal Act.
  6 26    Sec. 9.  Section 423.2, subsection 11, Code Supplement
  6 27 2007, is amended to read as follows:
  6 28    11.  a.  All revenues arising under the operation of the
  6 29 provisions of this section shall be deposited into the general
  6 30 fund of the state.
  6 31    b.  Subsequent to the deposit into the general fund of the
  6 32 state and after the transfer of such revenues collected under
  6 33 chapter 423B, the department shall transfer one=sixth of such
  6 34 remaining revenues to the secure an advanced vision for
  6 35 education fund created in section 423F.2.  This paragraph is
  7  1 repealed December 31, 2029.
  7  2    Sec. 10.  Section 423.2, Code Supplement 2007, is amended
  7  3 by adding the following new subsection:
  7  4    NEW SUBSECTION.  13.  The sales tax rate of six percent is
  7  5 reduced to five percent on January 1, 2030.
  7  6    Sec. 11.  Section 423.5, unnumbered paragraph 1, Code 2007,
  7  7 is amended to read as follows:
  7  8    An Except as provided in subsection 3, an excise tax at the
  7  9 rate of five six percent of the purchase price or installed
  7 10 purchase price is imposed on the following:
  7 11    Sec. 12.  Section 423.5, subsection 3, Code 2007, is
  7 12 amended to read as follows:
  7 13    3.  The An excise tax at the rate of five percent is
  7 14 imposed on the use of vehicles subject to registration, or
  7 15 subject only to the issuance of a certificate of title and the
  7 16 use of leased vehicles, on the amount subject to tax as
  7 17 calculated pursuant to section 423.27.
  7 18    Sec. 13.  Section 423.5, Code 2007, is amended by adding
  7 19 the following new subsection:
  7 20    NEW SUBSECTION.  9.  The use tax rate of six percent is
  7 21 reduced to five percent on January 1, 2030.
  7 22    Sec. 14.  Section 423.43, Code Supplement 2007, is amended
  7 23 to read as follows:
  7 24    423.43  DEPOSIT OF REVENUE == APPROPRIATIONS.
  7 25    1.  a.  Except as otherwise provided in subsection 2 and
  7 26 section 328.36, all revenues arising under the operation of
  7 27 the use tax under subchapter III shall be deposited into the
  7 28 general fund of the state.
  7 29    b.  Subsequent to the deposit into the general fund of the
  7 30 state and after the transfer of such revenues collected under
  7 31 chapter 423B, the department shall transfer one=sixth of such
  7 32 remaining revenues to the secure an advanced vision for
  7 33 education fund created in section 423F.2.  This paragraph is
  7 34 repealed December 31, 2029.
  7 35    2.  Except as otherwise provided in section 312.2,
  8  1 subsection 14, all revenues derived from the use tax on motor
  8  2 vehicles, trailers, and motor vehicle accessories and
  8  3 equipment as collected pursuant to sections 423.26 and 423.27
  8  4 shall be deposited and credited to the road use tax fund and
  8  5 shall be used exclusively for the construction, maintenance,
  8  6 and supervision of public highways., except as follows:
  8  7    1. a.  Notwithstanding any provision of this section which
  8  8 provides that all revenues derived from the use tax on motor
  8  9 vehicles, trailers, and motor vehicle accessories and
  8 10 equipment as collected pursuant to sections 423.26 and 423.27
  8 11 shall be deposited and credited to the road use tax fund,
  8 12 eighty Eighty percent of the revenues collected pursuant to
  8 13 sections 423.26 and 423.27 shall be deposited and credited as
  8 14 follows:
  8 15    a. (1)  Twenty=five percent of all such revenue, up to a
  8 16 maximum of four million two hundred fifty thousand dollars per
  8 17 quarter, shall be deposited into and credited to the Iowa
  8 18 comprehensive petroleum underground storage tank fund created
  8 19 in section 455G.3, and the moneys so deposited are a
  8 20 continuing appropriation for expenditure under chapter 455G,
  8 21 and moneys so appropriated shall not be used for other
  8 22 purposes.
  8 23    b. (2)  Any such revenues remaining shall be credited to
  8 24 the road use tax fund.
  8 25    2. b.  Notwithstanding any other provision of this section
  8 26 that provides that all revenue derived from the use tax on
  8 27 motor vehicles, trailers, and motor vehicle accessories and
  8 28 equipment as collected pursuant to section 423.26 shall be
  8 29 deposited and credited to the road use tax fund, twenty Twenty
  8 30 percent of the revenues collected pursuant to section 423.26
  8 31 shall be credited and deposited as follows:  one=half
  8 32    (1)  One=half to the road use tax fund and one=half.
  8 33    (2)  One=half to the primary road fund to be used for the
  8 34 commercial and industrial highway network.
  8 35    3.  All other revenue arising under the operation of the
  9  1 use tax under subchapter III shall be credited to the general
  9  2 fund of the state.
  9  3    Sec. 15.  Section 423E.3, subsections 1, 2, 3, and 4, Code
  9  4 2007, are amended by striking the subsections.
  9  5    Sec. 16.  Section 423E.3, subsection 5, paragraphs a, b,
  9  6 and c, Code 2007, are amended by striking the paragraphs.
  9  7    Sec. 17.  Section 423E.3, subsections 6 and 7, Code 2007,
  9  8 are amended by striking the subsections.
  9  9    Sec. 18.  Section 423E.4, subsection 1, Code 2007, is
  9 10 amended by striking the subsection.
  9 11    Sec. 19.  Section 423E.4, subsection 2, paragraph b,
  9 12 subparagraph (3), Code 2007, is amended to read as follows:
  9 13    (3)  A school district that is located in whole or in part
  9 14 in a county that voted on and approved the extension of the
  9 15 local sales and services tax for school infrastructure
  9 16 purposes pursuant to section 423E.2, subsection 5, Code 2007,
  9 17 on or after April 1, 2003, shall receive for any extended
  9 18 period an amount equal to its pro rata share of the local
  9 19 sales and services tax receipts as provided in section 423E.3,
  9 20 subsection 5, paragraph "d", not to exceed its guaranteed
  9 21 school infrastructure amount.  However, if the school
  9 22 district's pro rata share is less than its guaranteed school
  9 23 infrastructure amount, the district shall receive an
  9 24 additional amount equal to its supplemental school
  9 25 infrastructure amount.
  9 26    Sec. 20.  Section 423E.4, subsection 3, paragraph a, Code
  9 27 2007, is amended to read as follows:
  9 28    a.  The director of revenue by August 15 of each fiscal
  9 29 year shall compute the guaranteed school infrastructure amount
  9 30 for each school district, each school district's sales tax
  9 31 capacity per student for each county, the statewide tax
  9 32 revenues per student, and the supplemental school
  9 33 infrastructure amount for the coming fiscal year.
  9 34    Sec. 21.  Section 423E.4, subsection 3, paragraph b,
  9 35 subparagraph (2), Code 2007, is amended to read as follows:
 10  1    (2)  "Sales tax capacity per student" means for a school
 10  2 district the estimated amount of revenues that a school
 10  3 district receives or would receive if a local sales and
 10  4 services tax for school infrastructure purposes is was imposed
 10  5 at one percent in the county pursuant to section 423E.2, Code
 10  6 2007, as computed in subsection 8, divided by the school
 10  7 district's actual enrollment as determined in section 423E.3,
 10  8 subsection 5, paragraph "d".
 10  9    Sec. 22.  Section 423E.4, subsection 3, paragraph b,
 10 10 subparagraph (3), Code 2007, is amended by striking the
 10 11 subparagraph and inserting in lieu thereof the following:
 10 12    (3)  "Statewide tax revenues per student" means the amount
 10 13 determined by estimating the total revenues that would be
 10 14 generated by a one percent local option sales and services tax
 10 15 for school infrastructure purposes if imposed by all the
 10 16 counties during the entire fiscal year, as computed in
 10 17 subsection 8, and dividing this estimated revenue amount by
 10 18 the sum of the combined actual enrollment for all counties as
 10 19 determined in section 423E.3, subsection 5, paragraph "d",
 10 20 subparagraph (2).
 10 21    Sec. 23.  Section 423E.4, subsection 4, paragraph a, Code
 10 22 2007, is amended to read as follows:
 10 23    a.  For the purposes of distribution under subsection 2,
 10 24 paragraph "b", subparagraph (1), a school district with a
 10 25 sales tax capacity per student below its guaranteed school
 10 26 infrastructure amount shall use the amount equal to the
 10 27 guaranteed school infrastructure amount less the pro rata
 10 28 share amount in accordance with section 423E.3, subsection 5,
 10 29 paragraph "d", for the purpose of paying principal and
 10 30 interest on outstanding bonds previously issued for school
 10 31 infrastructure purposes as defined in section 423E.1,
 10 32 subsection 3, Code 2007.  Any money remaining after the
 10 33 payment of all principal and interest on outstanding bonds
 10 34 previously issued for infrastructure purposes may be used for
 10 35 any authorized infrastructure purpose of the school district.
 11  1 If a majority of the voters in the school district approves
 11  2 the use of revenue pursuant to a revenue purpose statement in
 11  3 an election held after July 1, 2003, in the school district
 11  4 pursuant to section 423E.2, Code 2007, the school district may
 11  5 use the amount for the purposes specified in its revenue
 11  6 purpose statement.
 11  7    Sec. 24.  Section 423E.4, subsection 7, Code 2007, is
 11  8 amended to read as follows:
 11  9    7.  Notwithstanding subsection 2 of this section or any
 11 10 other provision to the contrary, a school district that is
 11 11 located in whole or in part in a county that has not
 11 12 previously imposed the local sales and services tax for school
 11 13 infrastructure, and which votes on and approves the tax at a
 11 14 rate of one percent on or after January 1, 2007, and before
 11 15 July 1, 2008 2007, shall receive an amount equal to its pro
 11 16 rata share of the local sales and services tax receipts as
 11 17 provided in section 423E.3, subsection 5, paragraph "d", for a
 11 18 period corresponding to one=half the duration of the tax
 11 19 authorized by the voters.  For the second half of the duration
 11 20 of the tax authorized by the voters, local sales and services
 11 21 tax receipts shall be distributed as otherwise applicable
 11 22 pursuant to subsection 2 of this section.
 11 23    Sec. 25.  Section 423E.4, Code 2007, is amended by adding
 11 24 the following new subsection:
 11 25    NEW SUBSECTION.  8.  For purposes of calculating the amount
 11 26 generated in a county, the sales tax capacity per student and
 11 27 the statewide tax revenues per student under subsections 2 and
 11 28 3, the following shall apply:
 11 29    a.  For fiscal years beginning on or after July 1, 2008,
 11 30 the amount of revenues generated in a county by a one percent
 11 31 local option sales and services tax for school infrastructure
 11 32 purposes shall be deemed to equal the following:
 11 33    (1)  For the fiscal year beginning July 1, 2008, the amount
 11 34 of revenues generated in a county equals the amount of
 11 35 revenues generated in that county during the fiscal year
 12  1 beginning July 1, 2007, increased or decreased by the revenue
 12  2 factor, as computed in subparagraph (3).
 12  3    (2)  For fiscal years beginning on or after July 1, 2009,
 12  4 the amount of revenues generated in a county equals the amount
 12  5 of revenues generated in that county during the previous
 12  6 fiscal year, as computed in this paragraph, increased or
 12  7 decreased by the revenue factor, as computed in subparagraph
 12  8 (3).
 12  9    (3)  The revenue factor for a fiscal year equals the
 12 10 percentage change in the amount of state sales and use tax
 12 11 revenues to be deposited in the general fund of the state for
 12 12 that fiscal year compared to the amount of such revenues for
 12 13 the previous fiscal year as estimated by the revenue
 12 14 estimating conference at its latest meeting in the previous
 12 15 fiscal year.
 12 16    b.  For fiscal years beginning on or after July 1, 2008,
 12 17 the total statewide amount of revenues generated by a one cent
 12 18 local option sales and services tax for school infrastructure
 12 19 purposes shall be equal to the total of the amounts computed
 12 20 under paragraph "a" for all counties for the fiscal year.
 12 21    Sec. 26.  Section 423E.5, Code 2007, is amended to read as
 12 22 follows:
 12 23    423E.5  BONDING.
 12 24    The board of directors of a school district shall be
 12 25 authorized to issue negotiable, interest=bearing school bonds,
 12 26 without election, and utilize tax receipts derived from the
 12 27 sales and services tax for school infrastructure purposes and
 12 28 the supplemental school infrastructure amount distributed
 12 29 pursuant to section 423E.4, subsection 2, paragraph "b", and
 12 30 revenues received pursuant to section 423F.2, for principal
 12 31 and interest repayment.  Proceeds of the bonds issued pursuant
 12 32 to this section shall be utilized solely for school
 12 33 infrastructure needs as school infrastructure is defined in
 12 34 section 423E.1, subsection 3, Code 2007, and section 423F.3.
 12 35 Bonds issued under this section may be sold at public sale as
 13  1 provided in chapter 75, or at private sale, without notice and
 13  2 hearing as provided in section 73A.12.  Bonds may bear dates,
 13  3 bear interest at rates not exceeding that permitted by chapter
 13  4 74A, mature in one or more installments, be in registered
 13  5 form, carry registration and conversion privileges, be payable
 13  6 as to principal and interest at times and places, be subject
 13  7 to terms of redemption prior to maturity with or without
 13  8 premium, and be in one or more denominations, all as provided
 13  9 by the resolution of the board of directors authorizing their
 13 10 issuance.  The resolution may also prescribe additional
 13 11 provisions, terms, conditions, and covenants which the board
 13 12 of directors deems advisable, including provisions for
 13 13 creating and maintaining reserve funds, the issuance of
 13 14 additional bonds ranking on a parity with such bonds and
 13 15 additional bonds junior and subordinate to such bonds, and
 13 16 that such bonds shall rank on a parity with or be junior and
 13 17 subordinate to any bonds which may be then outstanding.  Bonds
 13 18 may be issued to refund outstanding and previously issued
 13 19 bonds under this section.  Local option sales and services tax
 13 20 revenue The bonds are a contract between contractual
 13 21 obligation of the school district and holders, and the
 13 22 resolution issuing the bonds and pledging local option sales
 13 23 and services tax revenues or its share of the revenues
 13 24 distributed pursuant to section 423F.2 to the payment of
 13 25 principal and interest on the bonds is a part of the contract.
 13 26 Bonds issued pursuant to this section shall not constitute
 13 27 indebtedness within the meaning of any constitutional or
 13 28 statutory debt limitation or restriction, and shall not be
 13 29 subject to any other law relating to the authorization,
 13 30 issuance, or sale of bonds.
 13 31    A school district in which a local option sales tax for
 13 32 school infrastructure purposes has been imposed shall be
 13 33 authorized to enter into a chapter 28E agreement with one or
 13 34 more cities or a county whose boundaries encompass all or a
 13 35 part of the area of the school district.  A city or cities
 14  1 entering into a chapter 28E agreement shall be authorized to
 14  2 expend its designated portion of the local option sales and
 14  3 services tax revenues for any valid purpose permitted in this
 14  4 chapter or authorized by the governing body of the city.  A
 14  5 county entering into a chapter 28E agreement with a school
 14  6 district in which a local option sales tax for school
 14  7 infrastructure purposes has been imposed shall be authorized
 14  8 to expend its designated portion of the local option sales and
 14  9 services tax revenues to provide property tax relief within
 14 10 the boundaries of the school district located in the county.
 14 11 A school district where a local option sales and services tax
 14 12 is imposed is also authorized to enter into a chapter 28E
 14 13 agreement with another school district, a community college,
 14 14 or an area education agency which is located partially or
 14 15 entirely in or is contiguous to the county where the tax is
 14 16 imposed school district is located.  The school district or
 14 17 community college shall only expend its designated portion of
 14 18 the local option sales and services tax revenues for
 14 19 infrastructure purposes.  The area education agency shall only
 14 20 expend its designated portion of the local option school
 14 21 infrastructure sales tax revenues for infrastructure and
 14 22 maintenance purposes.
 14 23    The governing body of a city may authorize the issuance of
 14 24 bonds which are payable from its designated portion of the
 14 25 revenues of the local option sales and services tax to be
 14 26 received under this section, and not from property tax, by
 14 27 following the authorization procedures set forth for cities in
 14 28 section 384.83.  A city may pledge irrevocably any amount
 14 29 derived from its designated portions of the revenues of the
 14 30 local option sales and services tax to the support or payment
 14 31 of such bonds.
 14 32    Sec. 27.  NEW SECTION.  423F.1  LEGISLATIVE INTENT.
 14 33    It is the intent of the general assembly that the increase
 14 34 in the state sales, services, and use taxes under chapter 423,
 14 35 subchapters II and III, from five percent to six percent on
 15  1 July 1, 2008, shall be used solely for purposes of providing
 15  2 revenues to local school districts under this chapter to be
 15  3 used solely for school infrastructure purposes or school
 15  4 district property tax relief.
 15  5    Sec. 28.  NEW SECTION.  423F.2  REPEAL OF LOCAL SALES AND
 15  6 SERVICES TAXES == SECURE AN ADVANCED VISION FOR EDUCATION
 15  7 FUND.
 15  8    1.  a.  After July 1, 2008, all local sales and services
 15  9 taxes for school infrastructure purposes imposed under chapter
 15 10 423E are repealed.  After July 1, 2008, a county no longer has
 15 11 the authority under chapter 423E or any other provision of law
 15 12 to impose or to extend an existing local sales and services
 15 13 tax for school infrastructure purposes.
 15 14    b.  The increase in the state sales, services, and use
 15 15 taxes under chapter 423, subchapters II and III, from five
 15 16 percent to six percent shall replace the repeal of the
 15 17 county's local sales and services tax for school
 15 18 infrastructure purposes.  The distribution of moneys in the
 15 19 secure an advanced vision for education fund and the use of
 15 20 the moneys for infrastructure purposes or property tax relief
 15 21 shall be as provided in this chapter.  However, the formula
 15 22 for the distribution of the moneys in the fund shall be based
 15 23 upon amounts that would have been received if the local sales
 15 24 and services taxes under chapter 423E, Code 2007, continued in
 15 25 existence, as computed pursuant to section 423E.4, subsection
 15 26 8.
 15 27    c.  To the extent that any school district has issued bonds
 15 28 anticipating the proceeds of a local sales and services tax
 15 29 for school infrastructure purposes prior to July 1, 2008, the
 15 30 pledge of such tax receipts for the payment of principal and
 15 31 interest on such bonds shall be replaced by a pledge of its
 15 32 share of the revenues the school district receives under this
 15 33 section.
 15 34    2.  A secure an advanced vision for education fund is
 15 35 created as a separate and distinct fund in the state treasury
 16  1 under the control of the department of revenue.  Moneys in the
 16  2 fund include revenues credited to the fund pursuant to this
 16  3 chapter, appropriations made to the fund, and other moneys
 16  4 deposited into the fund.  Subject to subsection 3, any amounts
 16  5 disbursed from the fund shall be utilized for school
 16  6 infrastructure purposes or property tax relief.
 16  7    3.  The moneys available in a fiscal year in the secure an
 16  8 advanced vision for education fund shall be distributed by the
 16  9 department of revenue to each school district in an amount
 16 10 equal to the amount the school district would have received
 16 11 pursuant to the formula in section 423E.4 as if the local
 16 12 sales and services tax for school infrastructure purposes was
 16 13 imposed.  Moneys in a fiscal year that are in excess of that
 16 14 needed to provide each school district with its formula amount
 16 15 shall be distributed and credited to the property tax equity
 16 16 and relief fund created in section 257.16A.
 16 17    4.  a.  The director of revenue by August 15 of each fiscal
 16 18 year shall send to each school district an estimate of the
 16 19 amount of tax moneys each school district will receive for the
 16 20 year and for each month of the year.  At the end of each
 16 21 month, the director may revise the estimates for the year and
 16 22 remaining months.
 16 23    b.  The director shall remit ninety=five percent of the
 16 24 estimated tax receipts for the school district to the school
 16 25 district on or before August 31 of the fiscal year and on or
 16 26 before the last day of each following month.
 16 27    c.  The director shall remit a final payment of the
 16 28 remainder of tax moneys due for the fiscal year before
 16 29 November 10 of the next fiscal year.  If an overpayment has
 16 30 resulted during the previous fiscal year, the November payment
 16 31 shall be adjusted to reflect any overpayment.
 16 32    Sec. 29.  NEW SECTION.  423F.3  USE OF REVENUES.
 16 33    1.  A school district receiving revenues from the secure an
 16 34 advanced vision for education fund under this chapter without
 16 35 a valid revenue purpose statement shall expend the revenues
 17  1 subject to subsections 2 and 3 for the following purposes:
 17  2    a.  Reduction of bond levies under sections 298.18 and
 17  3 298.18A and all other debt levies.
 17  4    b.  Reduction of the regular and voter=approved physical
 17  5 plant and equipment levy under section 298.2.
 17  6    c.  Reduction of the public educational and recreational
 17  7 levy under section 300.2.
 17  8    d.  Reduction of the schoolhouse tax levy under section
 17  9 278.1, subsection 7, Code 1989.
 17 10    e.  For any authorized infrastructure purpose of the school
 17 11 district as defined in subsection 6.
 17 12    f.  For the payment of principal and interest on bonds
 17 13 issued under sections 423E.5 and 423F.4.
 17 14    2.  A revenue purpose statement in existence for the
 17 15 expenditure of local sales and services tax for school
 17 16 infrastructure purposes imposed by a county pursuant to
 17 17 section 423E.2, Code 2007, prior to July 1, 2008, shall remain
 17 18 in effect until amended or extended.  The board of directors
 17 19 of a school district may take action to adopt or amend a
 17 20 revenue purpose statement specifying the specific purposes for
 17 21 which the revenues received from the secure an advanced vision
 17 22 for education fund will be expended.  If a school district is
 17 23 located in a county which has imposed a local sales and
 17 24 services tax for school infrastructure purposes prior to July
 17 25 1, 2008, this action shall be taken before expending or
 17 26 anticipating revenues to be received after the unextended term
 17 27 of the tax unless the school district elects to adopt a
 17 28 revenue purpose statement as provided in subsection 3.
 17 29    3.  a.  If the board of directors adopts a resolution to
 17 30 use funds received under the operation of this chapter solely
 17 31 for providing property tax relief by reducing indebtedness
 17 32 from the levies specified under section 298.2 or 298.18, the
 17 33 board of directors may approve a revenue purpose statement for
 17 34 that purpose without submitting the revenue purpose statement
 17 35 to a vote of the electors.
 18  1    b.  If the board of directors intends to use funds for
 18  2 purposes other than those listed in paragraph "a", or change
 18  3 the use of funds to purposes other than those listed in
 18  4 paragraph "a", the board shall adopt a revenue purpose
 18  5 statement, subject to approval of the electors, listing the
 18  6 proposed use of the funds.  School districts shall submit the
 18  7 statement to the voters no later than sixty days prior to the
 18  8 expiration of any existing revenue purpose statement or change
 18  9 in use not included in the existing revenue purpose statement.
 18 10    c.  The board secretary shall notify the county
 18 11 commissioner of elections of the intent to take the issue to
 18 12 the voters.  The county commissioner of elections shall
 18 13 publish the notices required by law for special or general
 18 14 elections, and the election shall be held not sooner than
 18 15 thirty days nor later than forty days after notice from the
 18 16 school board.  A majority of those voting on the question must
 18 17 favor approval of the revenue purpose statement.  If the
 18 18 proposal is not approved, the school district shall not submit
 18 19 the same or new revenue purpose statement to the electors for
 18 20 a period of six months from the date of the previous election.
 18 21    4.  The revenues received pursuant to this chapter shall be
 18 22 expended for the purposes specified in the revenue purpose
 18 23 statement.  If a board of directors has not approved a revenue
 18 24 purpose statement, the revenues shall be expended in the order
 18 25 listed in subsection 1 except that the payment of bonds for
 18 26 which the revenues have been pledged shall be paid first.
 18 27 Once approved, a revenue purpose statement is effective until
 18 28 amended or repealed by the foregoing procedures.  A revenue
 18 29 purpose statement shall not be amended or repealed to reduce
 18 30 the amount of revenue pledged to the payment of principal and
 18 31 interest on bonds as long as any bonds authorized by sections
 18 32 423E.5 and 423F.4 are outstanding unless funds sufficient to
 18 33 pay principal, interest, and premium, if any, on the
 18 34 outstanding obligations at or prior to maturity have been
 18 35 properly set aside and pledged for that purpose.
 19  1    5.  A school district with a certified enrollment of fewer
 19  2 than two hundred fifty pupils in the entire district or
 19  3 certified enrollment of fewer than one hundred pupils in high
 19  4 school shall not expend the amount received for new
 19  5 construction without prior application to the department of
 19  6 education and receipt of a certificate of need pursuant to
 19  7 this subsection.  A certificate of need is not required for
 19  8 repairing schoolhouses or buildings, equipment, technology, or
 19  9 transportation equipment for transporting students as provided
 19 10 in section 298.3, or for construction necessary for compliance
 19 11 with the federal Americans With Disabilities Act pursuant to
 19 12 42 U.S.C. } 12101==12117.  In determining whether a
 19 13 certificate of need shall be issued or denied, the department
 19 14 shall consider all of the following:
 19 15    a.  Enrollment trends in the grades that will be served at
 19 16 the new construction site.
 19 17    b.  The infeasibility of remodeling, reconstructing, or
 19 18 repairing existing buildings.
 19 19    c.  The fire and health safety needs of the school
 19 20 district.
 19 21    d.  The distance, convenience, cost of transportation, and
 19 22 accessibility of the new construction site to the students to
 19 23 be served at the new construction site.
 19 24    e.  Availability of alternative, less costly, or more
 19 25 effective means of serving the needs of the students.
 19 26    f.  The financial condition of the district, including the
 19 27 effect of the decline of the budget guarantee and unspent
 19 28 balance.
 19 29    g.  Broad and long=term ability of the district to support
 19 30 the facility and the quality of the academic program.
 19 31    h.  Cooperation with other educational entities including
 19 32 other school districts, area education agencies, postsecondary
 19 33 institutions, and local communities.
 19 34    6.  a.  For purposes of this chapter, "school
 19 35 infrastructure" means those activities authorized in section
 20  1 423E.1, subsection 3, Code 2007.
 20  2    b.  Additionally, "school infrastructure" includes the
 20  3 payment or retirement of outstanding bonds previously issued
 20  4 for school infrastructure purposes as defined in this
 20  5 subsection, and the payment or retirement of bonds issued
 20  6 under sections 423E.5 and 423F.4.
 20  7    c.  A school district that uses secure an advanced vision
 20  8 for education fund moneys for school infrastructure shall
 20  9 comply with the state building code in the absence of a local
 20 10 building code.
 20 11    7.  The general assembly shall not alter the purposes for
 20 12 which the revenues received under this section may be used
 20 13 from infrastructure and property tax relief purposes to any
 20 14 other purpose unless the bill is approved by a vote of at
 20 15 least two=thirds of the members of both chambers of the
 20 16 general assembly and is signed by the governor.
 20 17    Sec. 30.  NEW SECTION.  423F.4  BORROWING AUTHORITY FOR
 20 18 SCHOOL DISTRICTS.
 20 19    A school district may anticipate its share of the revenues
 20 20 under section 423F.2 by issuing bonds in the manner provided
 20 21 in section 423E.5.  However, to the extent any school district
 20 22 has issued bonds anticipating the proceeds of an extended
 20 23 local sales and services tax for school infrastructure
 20 24 purposes imposed by a county pursuant to chapter 423E, Code
 20 25 2007, prior to July 1, 2008, the pledge of such revenues for
 20 26 the payment of principal and interest on such bonds shall be
 20 27 replaced by a pledge of its share of the revenues under
 20 28 section 423F.2.
 20 29    Sec. 31.  NEW SECTION.  423F.5  CONTENTS OF FINANCIAL
 20 30 AUDIT.
 20 31    A school district shall include as part of its financial
 20 32 audit for the budget year beginning July 1, 2007, and for each
 20 33 subsequent budget year the amount received during the year
 20 34 pursuant to chapter 423E or 423F, as applicable.  In addition,
 20 35 the financial audit shall include the amount of bond levies,
 21  1 physical plant and equipment levy, and public educational and
 21  2 recreational levy reduced as a result of the moneys received
 21  3 under chapter 423E or 423F, as applicable.  The amount of the
 21  4 reductions shall be stated in terms of dollars and cents per
 21  5 one thousand dollars of valuation and in total amount of
 21  6 property tax dollars.  Also included shall be an accounting of
 21  7 the amount of moneys received which were spent for
 21  8 infrastructure purposes pursuant to chapter 423E or 423F, as
 21  9 applicable.
 21 10    The auditor of state may prescribe necessary forms and
 21 11 procedures for the consistent collection of the information
 21 12 required by this section.
 21 13    Sec. 32.  NEW SECTION.  423F.6  REPEAL.
 21 14    This chapter is repealed December 31, 2029.
 21 15    Sec. 33.  Section 423E.1, Code 2007, is repealed.
 21 16    Sec. 34.  Section 423E.2, Code Supplement 2007, is
 21 17 repealed.
 21 18    Sec. 35.  CONSTRUCTION CONTRACTORS.
 21 19    1.  Construction contractors may make application to the
 21 20 department of revenue for a refund of the additional one
 21 21 percent tax paid under chapter 423 by reason of the increase
 21 22 in the sales and use taxes from five to six percent for taxes
 21 23 paid on goods, wares, or merchandise under the following
 21 24 conditions:
 21 25    a.  The goods, wares, or merchandise are incorporated into
 21 26 an improvement to real estate in fulfillment of a written
 21 27 contract fully executed prior to July 1, 2008.  The refund
 21 28 shall not apply to equipment transferred in fulfillment of a
 21 29 mixed construction contract.
 21 30    b.  The contractor has paid to the department of revenue or
 21 31 to a retailer the full six percent tax.
 21 32    c.  The claim is filed on forms provided by the department
 21 33 of revenue and is filed within one year of the date the tax is
 21 34 paid.
 21 35    2.  A contractor who makes an erroneous application for
 22  1 refund shall be liable for payment of the excess refund paid
 22  2 plus interest at the rate in effect under section 421.7.  In
 22  3 addition, a contractor who willfully makes a false application
 22  4 for refund is liable for a penalty equal to fifty percent of
 22  5 the excess refund claimed.  Excess refunds, penalties, and
 22  6 interest due under this section may be enforced and collected
 22  7 in the same manner as the tax imposed by chapter 423.
 22  8    Sec. 36.  APPLICABILITY.  This section applies in regard to
 22  9 the increase in the state sales and use taxes from five to six
 22 10 percent.  The six percent rate applies to all sales of taxable
 22 11 personal property, consisting of goods, wares, or merchandise
 22 12 if delivery occurs on or after July 1, 2008.  The six percent
 22 13 use tax rate applies to the use of property when the first
 22 14 taxable use in this state occurs on or after July 1, 2008.
 22 15 The six percent rate applies to the gross receipts from the
 22 16 sale, furnishing, or service of gas, electricity, water, heat,
 22 17 pay television service, and communication service if the date
 22 18 of billing the customer is on or after July 1, 2008.  In the
 22 19 case of a service contract entered into prior to July 1, 2008,
 22 20 which contract calls for periodic payments, the six percent
 22 21 rate applies to those payments made or due on or after July 1,
 22 22 2008.  This periodic payment applies but is not limited to
 22 23 tickets or admissions, private club membership fees, sources
 22 24 of amusement, equipment rental, dry cleaning, reducing salons,
 22 25 dance schools, and all other services subject to tax, except
 22 26 the aforementioned utility services which are subject to a
 22 27 special transitional rule.  Unlike periodic payments under
 22 28 service contracts, installment sales of goods, wares, and
 22 29 merchandise are subject to the full amount of sales or use tax
 22 30 when the sales contract is entered into or the property is
 22 31 first used in Iowa.
 22 32                     COORDINATING AMENDMENTS
 22 33    Sec. 37.  Section 8.57, subsection 6, paragraph f, Code
 22 34 Supplement 2007, is amended to read as follows:
 22 35    f.  There is appropriated from the rebuild Iowa
 23  1 infrastructure fund to the secure an advanced vision for
 23  2 education fund created in section 423E.4 423F.2, for each
 23  3 fiscal year of the fiscal period beginning July 1, 2004 2008,
 23  4 and ending June 30, 2014, the amount of the moneys in excess
 23  5 of the first forty=seven million dollars credited to the
 23  6 rebuild Iowa infrastructure fund during the fiscal year, not
 23  7 to exceed ten million dollars.
 23  8    Sec. 38.  Section 76.4, Code 2007, is amended to read as
 23  9 follows:
 23 10    76.4  PERMISSIVE APPLICATION OF FUNDS.
 23 11    Whenever the governing authority of such political
 23 12 subdivision shall have on hand funds derived from any other
 23 13 source than taxation which may be appropriated to the payment
 23 14 either of interest or principal, or both principal and
 23 15 interest of such bonds, such funds may be so appropriated and
 23 16 used and the levy for the payment of the bonds correspondingly
 23 17 reduced.  This section shall not restrict the authority of a
 23 18 political subdivision to apply sales and services tax receipts
 23 19 collected pursuant to chapter 423B for such purpose.
 23 20 Notwithstanding section 423E.1, subsection 3 423F.3, a school
 23 21 district may apply local sales and services tax receipts
 23 22 collected received pursuant to chapter 423E 423F for the
 23 23 purposes of this section.
 23 24    Sec. 39.  Section 292.1, subsection 8, Code 2007, is
 23 25 amended to read as follows:
 23 26    8.  "Sales tax capacity per pupil" means the estimated
 23 27 amount of revenues that a school district receives or would
 23 28 receive if a local sales and services tax for school
 23 29 infrastructure is imposed at one percent from the secure an
 23 30 advanced vision for education fund pursuant to section 423E.2
 23 31 423F.2, divided by the school district's basic enrollment for
 23 32 the budget year.  For the budget year beginning July 1, 2000,
 23 33 the school district's actual enrollment shall be used in the
 23 34 calculation in place of the school district's basic enrollment
 23 35 for the budget year.
 24  1    Sec. 40.  Section 292.2, subsection 1, paragraph c, Code
 24  2 2007, is amended to read as follows:
 24  3    c.  The department of education, in consultation with the
 24  4 department of revenue and the legislative services agency,
 24  5 shall annually calculate the estimated sales and services tax
 24  6 for school infrastructure, if imposed at one percent, that is
 24  7 or would be received by each school district in the state
 24  8 pursuant to section 423E.3 423F.2.  These calculations shall
 24  9 be made on a total tax and on a tax per pupil basis for each
 24 10 school district.
 24 11    Sec. 41.  Section 292.2, subsection 2, paragraph a,
 24 12 subparagraph (2), Code 2007, is amended to read as follows:
 24 13    (2)  Local sales and services tax Tax moneys received
 24 14 pursuant to section 423E.3 423F.2.
 24 15    Sec. 42.  Section 292.2, subsection 3, paragraph i, Code
 24 16 2007, is amended by striking the paragraph.
 24 17    Sec. 43.  Section 292.2, subsection 7, paragraph d, Code
 24 18 2007, is amended to read as follows:
 24 19    d.  A school district for which a sales and services tax
 24 20 for school infrastructure has not been imposed pursuant to
 24 21 section 423E.2 or a school district receiving minimal revenues
 24 22 under section 423E.3 423F.2 when the total enrollment of the
 24 23 school district is considered.
 24 24    Sec. 44.  Section 292.2, subsection 10, Code 2007, is
 24 25 amended by striking the subsection.
 24 26    Sec. 45.  Section 312.1, subsection 4, Code 2007, is
 24 27 amended to read as follows:
 24 28    4.  To the extent provided in section 423.43, subsection 1
 24 29 2, paragraph "b" "a", subparagraph (2), from revenue derived
 24 30 from the use tax, under chapter 423 on motor vehicles,
 24 31 trailers, and motor vehicle accessories and equipment.
 24 32    Sec. 46.  Section 312.2, subsection 14, Code Supplement
 24 33 2007, is amended to read as follows:
 24 34    14.  The treasurer of state, before making the allotments
 24 35 provided for in this section, shall credit monthly from the
 25  1 road use tax fund to the state department of transportation
 25  2 from revenue credited to the road use tax fund under section
 25  3 423.43, subsection 1 2, paragraph "b" "a", subparagraph (2),
 25  4 an amount equal to one=twentieth of eighty percent of the
 25  5 revenue from the operation of section 423.26, to be used for
 25  6 purposes of public transit assistance under chapter 324A.
 25  7    Sec. 47.  Section 321.34, subsection 7, paragraph c, Code
 25  8 Supplement 2007, is amended to read as follows:
 25  9    c.  The fees for a collegiate registration plate are as
 25 10 follows:
 25 11    (1)  A registration fee of twenty=five dollars.
 25 12    (2)  A special collegiate registration fee of twenty=five
 25 13 dollars.
 25 14    These fees are in addition to the regular annual
 25 15 registration fee.  The fees collected by the director under
 25 16 this subsection shall be paid monthly to the treasurer of
 25 17 state and credited by the treasurer of state to the road use
 25 18 tax fund.  Notwithstanding section 423.43 and prior to the
 25 19 revenues being credited to the road use tax fund under section
 25 20 423.43, subsection 1 2, paragraph "b" "a", subparagraph (2),
 25 21 the treasurer of state shall credit monthly from those
 25 22 revenues respectively, to Iowa state university of science and
 25 23 technology, the university of northern Iowa, and the state
 25 24 university of Iowa, the amount of the special collegiate
 25 25 registration fees collected in the previous month for
 25 26 collegiate registration plates designed for the university.
 25 27 The moneys credited are appropriated to the respective
 25 28 universities to be used for scholarships for students
 25 29 attending the universities.
 25 30    Sec. 48.  Section 321.34, subsection 10, paragraph c, Code
 25 31 Supplement 2007, is amended to read as follows:
 25 32    c.  The special fees collected by the director under this
 25 33 subsection shall be paid monthly to the treasurer of state and
 25 34 credited to the road use tax fund.  Notwithstanding section
 25 35 423.43, and prior to the crediting of revenues to the road use
 26  1 tax fund under section 423.43, subsection 1 2, paragraph "b"
 26  2 "a", subparagraph (2), the treasurer of state shall transfer
 26  3 monthly from those revenues to the Paul Ryan memorial fire
 26  4 fighter safety training fund created pursuant to section
 26  5 100B.12 the amount of the special fees collected in the
 26  6 previous month for the fire fighter plates.
 26  7    Sec. 49.  Section 321.34, subsection 10A, paragraph b, Code
 26  8 Supplement 2007, is amended to read as follows:
 26  9    b.  The special fees collected by the director under this
 26 10 subsection shall be paid monthly to the treasurer of state and
 26 11 credited to the road use tax fund.  Notwithstanding section
 26 12 423.43, and prior to the crediting of revenues to the road use
 26 13 tax fund under section 423.43, subsection 1 2, paragraph "b"
 26 14 "a", subparagraph (2), the treasurer of state shall transfer
 26 15 monthly from those revenues to the emergency medical services
 26 16 fund created in section 135.25 the amount of the special fees
 26 17 collected in the previous month for issuance of emergency
 26 18 medical services plates.
 26 19    Sec. 50.  Section 321.34, subsection 11, paragraph c,
 26 20 unnumbered paragraph 1, Code Supplement 2007, is amended to
 26 21 read as follows:
 26 22    The special natural resources fee for letter number
 26 23 designated natural resources plates is forty=five dollars.
 26 24 The fee for personalized natural resources plates is
 26 25 forty=five dollars which shall be paid in addition to the
 26 26 special natural resources fee of forty=five dollars.  The fees
 26 27 collected by the director under this subsection shall be paid
 26 28 monthly to the treasurer of state and credited to the road use
 26 29 tax fund.  Notwithstanding section 423.43, and prior to the
 26 30 crediting of revenues to the road use tax fund under section
 26 31 423.43, subsection 1 2, paragraph "b" "a", subparagraph (2),
 26 32 the treasurer of state shall credit monthly from those
 26 33 revenues to the Iowa resources enhancement and protection fund
 26 34 created pursuant to section 455A.18, the amount of the special
 26 35 natural resources fees collected in the previous month for the
 27  1 natural resources plates.
 27  2    Sec. 51.  Section 321.34, subsection 11A, paragraph c, Code
 27  3 Supplement 2007, is amended to read as follows:
 27  4    c.  The special fee for letter number designated love our
 27  5 kids plates is thirty=five dollars.  The fee for personalized
 27  6 love our kids plates is twenty=five dollars, which shall be
 27  7 paid in addition to the special love our kids fee of
 27  8 thirty=five dollars.  The fees collected by the director under
 27  9 this subsection shall be paid monthly to the treasurer of
 27 10 state and credited to the road use tax fund.  Notwithstanding
 27 11 section 423.43, and prior to the crediting of revenues to the
 27 12 road use tax fund under section 423.43, subsection 1 2,
 27 13 paragraph "b" "a", subparagraph (2), the treasurer of state
 27 14 shall transfer monthly from those revenues to the Iowa
 27 15 department of public health the amount of the special fees
 27 16 collected in the previous month for the love our kids plates.
 27 17 Notwithstanding section 8.33, moneys transferred under this
 27 18 subsection shall not revert to the general fund of the state.
 27 19    Sec. 52.  Section 321.34, subsection 11B, paragraph c, Code
 27 20 Supplement 2007, is amended to read as follows:
 27 21    c.  The special fee for letter number designated motorcycle
 27 22 rider education plates is thirty=five dollars.  The fee for
 27 23 personalized motorcycle rider education plates is twenty=five
 27 24 dollars, which shall be paid in addition to the special
 27 25 motorcycle rider education fee of thirty=five dollars.  The
 27 26 fees collected by the director under this subsection shall be
 27 27 paid monthly to the treasurer of state and credited to the
 27 28 road use tax fund.  Notwithstanding section 423.43, and prior
 27 29 to the crediting of revenues to the road use tax fund under
 27 30 section 423.43, subsection 1 2, paragraph "b" "a",
 27 31 subparagraph (2), the treasurer of state shall transfer
 27 32 monthly from those revenues to the department for use in
 27 33 accordance with section 321.180B, subsection 6, the amount of
 27 34 the special fees collected in the previous month for the
 27 35 motorcycle rider education plates.
 28  1    Sec. 53.  Section 321.34, subsection 13, paragraph d, Code
 28  2 Supplement 2007, is amended to read as follows:
 28  3    d.  A state agency may submit a request to the department
 28  4 recommending a special registration plate.  The alternate fee
 28  5 for letter number designated plates is thirty=five dollars
 28  6 with a ten dollar annual special renewal fee.  The fee for
 28  7 personalized plates is twenty=five dollars which is in
 28  8 addition to the alternative fee of thirty=five dollars with an
 28  9 annual personalized plate renewal fee of five dollars which is
 28 10 in addition to the special renewal fee of ten dollars.  The
 28 11 alternate fees are in addition to the regular annual
 28 12 registration fee.  The alternate fees collected under this
 28 13 paragraph shall be paid monthly to the treasurer of state and
 28 14 credited to the road use tax fund.  Notwithstanding section
 28 15 423.43, and prior to the crediting of the revenues to the road
 28 16 use tax fund under section 423.43, subsection 1 2, paragraph
 28 17 "b" "a", subparagraph (2), the treasurer of state shall credit
 28 18 monthly the amount of the alternate fees collected in the
 28 19 previous month to the state agency that recommended the
 28 20 special registration plate.
 28 21    Sec. 54.  Section 321.34, subsection 16, unnumbered
 28 22 paragraph 1, Code Supplement 2007, is amended to read as
 28 23 follows:
 28 24    An owner referred to in subsection 12 who is a member of
 28 25 the national guard, as defined in chapter 29A, may, upon
 28 26 written application to the department, order special
 28 27 registration plates with a national guard processed emblem
 28 28 with the emblem designed by the department in cooperation with
 28 29 the adjutant general which emblem signifies that the applicant
 28 30 is a member of the national guard.  The application shall be
 28 31 approved by the department in consultation with the adjutant
 28 32 general.  The special plate fees collected by the director
 28 33 under subsection 12, paragraph "a", from the issuance and
 28 34 annual validation of letter=number designated and personalized
 28 35 national guard plates shall be paid monthly to the treasurer
 29  1 of state and credited to the road use tax fund.
 29  2 Notwithstanding section 423.43, and prior to the crediting of
 29  3 revenues to the road use tax fund under section 423.43,
 29  4 subsection 1 2, paragraph "b" "a", subparagraph (2), the
 29  5 treasurer of state shall transfer monthly from those revenues
 29  6 to the veterans license fee fund created in section 35A.11 the
 29  7 amount of the special fees collected in the previous month for
 29  8 national guard plates.  Special registration plates with a
 29  9 national guard processed emblem shall be surrendered, as
 29 10 provided in subsection 12, in exchange for regular
 29 11 registration plates upon termination of the owner's membership
 29 12 in the active national guard.
 29 13    Sec. 55.  Section 321.34, subsection 17, unnumbered
 29 14 paragraph 1, Code Supplement 2007, is amended to read as
 29 15 follows:
 29 16    An owner referred to in subsection 12 who was at Pearl
 29 17 Harbor, Hawaii, as a member of the armed services of the
 29 18 United States on December 7, 1941, may, upon written
 29 19 application to the department, order special registration
 29 20 plates with a Pearl Harbor processed emblem.  The emblem shall
 29 21 be designed by the department in consultation with service
 29 22 organizations.  The application is subject to approval by the
 29 23 department.  The special plate fees collected by the director
 29 24 under subsection 12, paragraph "a", from the issuance and
 29 25 annual validation of letter=number designated and personalized
 29 26 Pearl Harbor plates shall be paid monthly to the treasurer of
 29 27 state and credited to the road use tax fund.  Notwithstanding
 29 28 section 423.43, and prior to the crediting of revenues to the
 29 29 road use tax fund under section 423.43, subsection 1 2,
 29 30 paragraph "b" "a", subparagraph (2), the treasurer of state
 29 31 shall transfer monthly from those revenues to the veterans
 29 32 license fee fund created in section 35A.11 the amount of the
 29 33 special fees collected in the previous month for Pearl Harbor
 29 34 plates.
 29 35    Sec. 56.  Section 321.34, subsection 18, unnumbered
 30  1 paragraph 1, Code Supplement 2007, is amended to read as
 30  2 follows:
 30  3    An owner referred to in subsection 12 who was awarded a
 30  4 purple heart medal by the United States government for wounds
 30  5 received in military or naval combat against an armed enemy of
 30  6 the United States may, upon written application to the
 30  7 department and presentation of satisfactory proof of the award
 30  8 of the purple heart medal, order special registration plates
 30  9 with a purple heart processed emblem.  The design of the
 30 10 emblem shall include a representation of a purple heart medal
 30 11 and ribbon.  The application is subject to approval by the
 30 12 department in consultation with the adjutant general.  The
 30 13 special plate fees collected by the director under subsection
 30 14 12, paragraph "a", from the issuance and annual validation of
 30 15 letter=number designated and personalized purple heart plates
 30 16 shall be paid monthly to the treasurer of state and credited
 30 17 to the road use tax fund.  Notwithstanding section 423.43, and
 30 18 prior to the crediting of revenues to the road use tax fund
 30 19 under section 423.43, subsection 1 2, paragraph "b" "a",
 30 20 subparagraph (2), the treasurer of state shall transfer
 30 21 monthly from those revenues to the veterans license fee fund
 30 22 created in section 35A.11 the amount of the special fees
 30 23 collected in the previous month for purple heart plates.
 30 24    Sec. 57.  Section 321.34, subsection 19, unnumbered
 30 25 paragraph 1, Code Supplement 2007, is amended to read as
 30 26 follows:
 30 27    An owner referred to in subsection 12 who is a retired
 30 28 member of the United States armed forces may, upon written
 30 29 application to the department and upon presentation of
 30 30 satisfactory proof of membership, order special registration
 30 31 plates with a United States armed forces retired processed
 30 32 emblem.  The emblem shall be designed by the department in
 30 33 consultation with service organizations.  The application is
 30 34 subject to approval by the department.  For purposes of this
 30 35 subsection, a person is considered to be retired if the person
 31  1 is recognized by the United States armed forces as retired
 31  2 from the United States armed forces.  The special plate fees
 31  3 collected by the director under subsection 12, paragraph "a",
 31  4 from the issuance and annual validation of letter=number
 31  5 designated and personalized armed forces retired plates shall
 31  6 be paid monthly to the treasurer of state and credited to the
 31  7 road use tax fund.  Notwithstanding section 423.43, and prior
 31  8 to the crediting of revenues to the road use tax fund under
 31  9 section 423.43, subsection 1 2, paragraph "b" "a",
 31 10 subparagraph (2), the treasurer of state shall transfer
 31 11 monthly from those revenues to the veterans license fee fund
 31 12 created in section 35A.11 the amount of the special fees
 31 13 collected in the previous month for armed forces retired
 31 14 plates.
 31 15    Sec. 58.  Section 321.34, subsection 20, unnumbered
 31 16 paragraph 1, Code Supplement 2007, is amended to read as
 31 17 follows:
 31 18    An owner referred to in subsection 12 who was awarded a
 31 19 silver or a bronze star by the United States government, may,
 31 20 upon written application to the department and presentation of
 31 21 satisfactory proof of the award of the silver or bronze star,
 31 22 order special registration plates with a silver or bronze star
 31 23 processed emblem.  The emblem shall be designed by the
 31 24 department in consultation with the adjutant general.  The
 31 25 special plate fees collected by the director under subsection
 31 26 12, paragraph "a", from the issuance and annual validation of
 31 27 letter=number designated and personalized silver star and
 31 28 bronze star plates shall be paid monthly to the treasurer of
 31 29 state and credited to the road use tax fund.  Notwithstanding
 31 30 section 423.43, and prior to the crediting of revenues to the
 31 31 road use tax fund under section 423.43, subsection 1 2,
 31 32 paragraph "b" "a", subparagraph (2), the treasurer of state
 31 33 shall transfer monthly from those revenues to the veterans
 31 34 license fee fund created in section 35A.11 the amount of the
 31 35 special fees collected in the previous month for silver star
 32  1 and bronze star plates.
 32  2    Sec. 59.  Section 321.34, subsection 20A, unnumbered
 32  3 paragraph 1, Code Supplement 2007, is amended to read as
 32  4 follows:
 32  5    An owner referred to in subsection 12 who was awarded a
 32  6 distinguished service cross, a navy cross, or an air force
 32  7 cross by the United States government may, upon written
 32  8 application to the department and presentation of satisfactory
 32  9 proof of the award, order special registration plates with a
 32 10 distinguished service cross, navy cross, or air force cross
 32 11 processed emblem.  The emblem shall be designed by the
 32 12 department in consultation with the adjutant general.  The
 32 13 special plate fees collected by the director under subsection
 32 14 12, paragraph "a", from the issuance and annual validation of
 32 15 letter=number designated and personalized distinguished
 32 16 service cross, navy cross, and air force cross plates shall be
 32 17 paid monthly to the treasurer of state and credited to the
 32 18 road use tax fund.  Notwithstanding section 423.43, and prior
 32 19 to the crediting of revenues to the road use tax fund under
 32 20 section 423.43, subsection 1 2, paragraph "b" "a",
 32 21 subparagraph (2), the treasurer of state shall transfer
 32 22 monthly from those revenues to the veterans license fee fund
 32 23 created in section 35A.11 the amount of the special fees
 32 24 collected in the previous month for distinguished service
 32 25 cross, navy cross, and air force cross plates.
 32 26    Sec. 60.  Section 321.34, subsection 20B, unnumbered
 32 27 paragraph 1, Code Supplement 2007, is amended to read as
 32 28 follows:
 32 29    An owner referred to in subsection 12 who was awarded a
 32 30 soldier's medal, a navy and marine corps medal, or an airman's
 32 31 medal by the United States government may, upon written
 32 32 application to the department and presentation of satisfactory
 32 33 proof of the award, order special registration plates with a
 32 34 soldier's medal, navy and marine corps medal, or airman's
 32 35 medal processed emblem.  The emblem shall be designed by the
 33  1 department in consultation with the adjutant general.  The
 33  2 special plate fees collected by the director under subsection
 33  3 12, paragraph "a", from the issuance and annual validation of
 33  4 letter=number designated and personalized soldier's medal,
 33  5 navy and marine corps medal, and airman's medal plates shall
 33  6 be paid monthly to the treasurer of state and credited to the
 33  7 road use tax fund.  Notwithstanding section 423.43, and prior
 33  8 to the crediting of revenues to the road use tax fund under
 33  9 section 423.43, subsection 1 2, paragraph "b" "a",
 33 10 subparagraph (2), the treasurer of state shall transfer
 33 11 monthly from those revenues to the veterans license fee fund
 33 12 created in section 35A.11 the amount of the special fees
 33 13 collected in the previous month for soldier's medal, navy and
 33 14 marine corps medal, and airman's medal plates.
 33 15    Sec. 61.  Section 321.34, subsection 21, paragraph c, Code
 33 16 Supplement 2007, is amended to read as follows:
 33 17    c.  The special fees collected by the director under this
 33 18 subsection shall be paid monthly to the treasurer of state and
 33 19 credited to the road use tax fund.  Notwithstanding section
 33 20 423.43, and prior to the crediting of revenues to the road use
 33 21 tax fund under section 423.43, subsection 1 2, paragraph "b"
 33 22 "a", subparagraph (2), the treasurer of state shall credit
 33 23 monthly to the Iowa heritage fund created under section 303.9A
 33 24 the amount of the special fees collected in the previous month
 33 25 for the Iowa heritage plates.
 33 26    Sec. 62.  Section 321.34, subsection 22, paragraph b, Code
 33 27 Supplement 2007, is amended to read as follows:
 33 28    b.  The special school transportation fee for letter number
 33 29 designated education plates is thirty=five dollars.  The fee
 33 30 for personalized education plates is twenty=five dollars,
 33 31 which shall be paid in addition to the special school
 33 32 transportation fee of thirty=five dollars.  The annual special
 33 33 school transportation fee is ten dollars for letter number
 33 34 designated registration plates and is fifteen dollars for
 33 35 personalized registration plates which shall be paid in
 34  1 addition to the regular annual registration fee.  The fees
 34  2 collected by the director under this subsection shall be paid
 34  3 monthly to the treasurer of state and credited to the road use
 34  4 tax fund.  Notwithstanding section 423.43, and prior to the
 34  5 crediting of revenues to the road use tax fund under section
 34  6 423.43, subsection 1 2, paragraph "b" "a", subparagraph (2),
 34  7 the treasurer of state shall transfer monthly from those
 34  8 revenues to the school budget review committee in accordance
 34  9 with section 257.31, subsection 17, the amount of the special
 34 10 school transportation fees collected in the previous month for
 34 11 the education plates.
 34 12    Sec. 63.  Section 321.34, subsection 23, paragraph c, Code
 34 13 Supplement 2007, is amended to read as follows:
 34 14    c.  The special fee for letter number designated breast
 34 15 cancer awareness plates is thirty=five dollars.  The fee for
 34 16 personalized breast cancer awareness plates is twenty=five
 34 17 dollars, which shall be paid in addition to the special breast
 34 18 cancer awareness fee of thirty=five dollars.  The fees
 34 19 collected by the director under this subsection shall be paid
 34 20 monthly to the treasurer of state and credited to the road use
 34 21 tax fund.  Notwithstanding section 423.43, and prior to the
 34 22 crediting of revenues to the road use tax fund under section
 34 23 423.43, subsection 1 2, paragraph "b" "a", subparagraph (2),
 34 24 the treasurer of state shall transfer monthly from those
 34 25 revenues to the Iowa department of public health the amount of
 34 26 the special fees collected in the previous month for the
 34 27 breast cancer awareness plates and such funds are appropriated
 34 28 to the Iowa department of public health.  The Iowa department
 34 29 of public health shall distribute one hundred percent of the
 34 30 funds received monthly in the form of grants to support breast
 34 31 cancer screenings for both men and women who meet eligibility
 34 32 requirements like those established by the Susan G. Komen
 34 33 foundation.  In the awarding of grants, the Iowa department of
 34 34 public health shall give first consideration to affiliates of
 34 35 the Susan G. Komen foundation and similar nonprofit
 35  1 organizations providing for breast cancer screenings at no
 35  2 cost in Iowa.  Notwithstanding section 8.33, moneys
 35  3 transferred under this subsection shall not revert to the
 35  4 general fund of the state.
 35  5    Sec. 64.  Section 321.34, subsection 24, Code Supplement
 35  6 2007, is amended to read as follows:
 35  7    24.  GOLD STAR PLATES.  An owner referred to in subsection
 35  8 12 who is the surviving spouse, parent, child, or sibling of a
 35  9 deceased member of the United States armed forces who died
 35 10 while serving on active duty during a time of military
 35 11 conflict may order special registration plates bearing a gold
 35 12 star emblem upon written application to the department
 35 13 accompanied by satisfactory supporting documentation as
 35 14 determined by the department.  The gold star emblem shall be
 35 15 designed by the department in cooperation with the commission
 35 16 of veterans affairs.  The special plate fees collected by the
 35 17 director under subsection 12, paragraph "a", from the issuance
 35 18 and annual validation of letter=number designated and
 35 19 personalized gold star plates shall be paid monthly to the
 35 20 treasurer of state and credited to the road use tax fund.
 35 21 Notwithstanding section 423.43, and prior to the crediting of
 35 22 revenues to the road use tax fund under section 423.43,
 35 23 subsection 1 2, paragraph "b" "a", subparagraph (2), the
 35 24 treasurer of state shall transfer monthly from those revenues
 35 25 to the veterans license fee fund created in section 35A.11 the
 35 26 amount of the special fees collected in the previous month for
 35 27 gold star plates.
 35 28    Sec. 65.  Section 327I.26, Code 2007, is amended to read as
 35 29 follows:
 35 30    327I.26  APPROPRIATION TO AUTHORITY.
 35 31    Notwithstanding section 423.43, and prior to the
 35 32 application of section 423.43, subsection 1 2, paragraph "b"
 35 33 "a", subparagraph (2), there shall be deposited into the
 35 34 general fund of the state and is appropriated to the authority
 35 35 from eighty percent of the revenues derived from the operation
 36  1 of section 423.26, the amounts certified by the authority
 36  2 under section 327I.25.  However, the total amount deposited
 36  3 into the general fund and appropriated to the Iowa railway
 36  4 finance authority under this section shall not exceed two
 36  5 million dollars annually.  Moneys appropriated to the Iowa
 36  6 railway finance authority under this section are appropriated
 36  7 only for the payment of principal and interest on obligations
 36  8 or the payment of leases guaranteed by the authority as
 36  9 provided under section 327I.25.
 36 10    Sec. 66.  Section 423.36, subsection 8, paragraph a, Code
 36 11 2007, is amended to read as follows:
 36 12    a.  Except as provided in paragraph "b", purchasers, users,
 36 13 and consumers of tangible personal property or enumerated
 36 14 services taxed pursuant to subchapter II or III of this
 36 15 chapter or chapters chapter 423B and 423E may be authorized,
 36 16 pursuant to rules adopted by the director, to remit tax owed
 36 17 directly to the department instead of the tax being collected
 36 18 and paid by the seller.  To qualify for a direct pay tax
 36 19 permit, the purchaser, user, or consumer must accrue a tax
 36 20 liability of more than four thousand dollars in tax under
 36 21 subchapters II and III in a semimonthly period and make
 36 22 deposits and file returns pursuant to section 423.31.  This
 36 23 authority shall not be granted or exercised except upon
 36 24 application to the director and then only after issuance by
 36 25 the director of a direct pay tax permit.
 36 26    Sec. 67.  Section 423.57, Code Supplement 2007, is amended
 36 27 to read as follows:
 36 28    423.57  STATUTES APPLICABLE.
 36 29    The director shall administer this subchapter as it relates
 36 30 to the taxes imposed in this chapter in the same manner and
 36 31 subject to all the provisions of, and all of the powers,
 36 32 duties, authority, and restrictions contained in sections
 36 33 423.14, 423.15, 423.16, 423.17, 423.19, 423.20, 423.21,
 36 34 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 423.31,
 36 35 423.32, 423.33, 423.34, 423.35, 423.37, 423.38, 423.39,
 37  1 423.40, 423.41, and 423.42, section 423.43, subsection 3 1,
 37  2 and sections 423.45, 423.46, and 423.47.
 37  3    Sec. 68.  Section 423B.7, subsection 6, paragraphs a and b,
 37  4 Code 2007, are amended by striking the paragraphs.
 37  5    Sec. 69.  Section 455G.3, subsection 1, Code 2007, is
 37  6 amended to read as follows:
 37  7    1.  The Iowa comprehensive petroleum underground storage
 37  8 tank fund is created as a separate fund in the state treasury,
 37  9 and any funds remaining in the fund at the end of each fiscal
 37 10 year shall not revert to the general fund but shall remain in
 37 11 the Iowa comprehensive petroleum underground storage tank
 37 12 fund.  Interest or other income earned by the fund shall be
 37 13 deposited in the fund.  The fund shall include moneys credited
 37 14 to the fund under this section, section 423.43, subsection 1
 37 15 2, paragraph "a", subparagraph (1), and sections 455G.8,
 37 16 455G.9, and 455G.11, Code 2003, and other funds which by law
 37 17 may be credited to the fund.  The moneys in the fund are
 37 18 appropriated to and for the purposes of the board as provided
 37 19 in this chapter.  Amounts in the fund shall not be subject to
 37 20 appropriation for any other purpose by the general assembly,
 37 21 but shall be used only for the purposes set forth in this
 37 22 chapter.  The treasurer of state shall act as custodian of the
 37 23 fund and disburse amounts contained in it as directed by the
 37 24 board including automatic disbursements of funds as received
 37 25 pursuant to the terms of bond indentures and documents and
 37 26 security provisions to trustees and custodians.  The treasurer
 37 27 of state is authorized to invest the funds deposited in the
 37 28 fund at the direction of the board and subject to any
 37 29 limitations contained in any applicable bond proceedings.  The
 37 30 income from such investment shall be credited to and deposited
 37 31 in the fund.  The fund shall be administered by the board
 37 32 which shall make expenditures from the fund consistent with
 37 33 the purposes of the programs set out in this chapter without
 37 34 further appropriation.  The fund may be divided into different
 37 35 accounts with different depositories as determined by the
 38  1 board and to fulfill the purposes of this chapter.
 38  2    Sec. 70.  Section 455G.6, subsection 4, Code 2007, is
 38  3 amended to read as follows:
 38  4    4.  Grant a mortgage, lien, pledge, assignment, or other
 38  5 encumbrance on one or more improvements, revenues, asset of
 38  6 right, accounts, or funds established or received in
 38  7 connection with the fund, including revenues derived from the
 38  8 use tax under section 423.43, subsection 1 2, paragraph "a",
 38  9 subparagraph (1), and deposited in the fund or an account of
 38 10 the fund.
 38 11    Sec. 71.  Section 455G.8, subsection 2, Code 2007, is
 38 12 amended to read as follows:
 38 13    2.  USE TAX.  The revenues derived from the use tax imposed
 38 14 under chapter 423, subchapter III.  The proceeds of the use
 38 15 tax under section 423.43, subsection 1 2, paragraph "a",
 38 16 subparagraph (1), shall be allocated, consistent with this
 38 17 chapter, among the fund's accounts, for debt service and other
 38 18 fund expenses, according to the fund budget, resolution, trust
 38 19 agreement, or other instrument prepared or entered into by the
 38 20 board or authority under direction of the board.
 38 21    Sec. 72.  2007 Iowa Acts, chapter 179, section 6, is
 38 22 amended to read as follows:
 38 23    SEC. 6.  Section 423.57, Code 2007, as amended by this Act,
 38 24 is amended to read as follows:
 38 25    423.57  STATUTES APPLICABLE.
 38 26    The director shall administer this subchapter as it relates
 38 27 to the taxes imposed in this chapter in the same manner and
 38 28 subject to all the provisions of, and all of the powers,
 38 29 duties, authority, and restrictions contained in sections
 38 30 423.14, 423.15, 423.16, 423.17, 423.19, 423.20, 423.21,
 38 31 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 423.31,
 38 32 423.32, 423.33, 423.34, 423.34A, 423.35, 423.37, 423.38,
 38 33 423.39, 423.40, 423.41, and 423.42, section 423.43, subsection
 38 34 3 1, and sections 423.45, 423.46, and 423.47.
 38 35    Sec. 73.  EFFECTIVE DATE.  The section of this Act amending
 39  1 2007 Iowa Acts, chapter 179, takes effect January 1, 2009.
 39  2
 39  3
 39  4                                                             
 39  5                               PATRICK J. MURPHY
 39  6                               Speaker of the House
 39  7
 39  8
 39  9                                                             
 39 10                               JOHN P. KIBBIE
 39 11                               President of the Senate
 39 12
 39 13    I hereby certify that this bill originated in the House and
 39 14 is known as House File 2663, Eighty=second General Assembly.
 39 15
 39 16
 39 17                                                             
 39 18                               MARK BRANDSGARD
 39 19                               Chief Clerk of the House
 39 20 Approved                , 2008
 39 21
 39 22
 39 23                            
 39 24 CHESTER J. CULVER
 39 25 Governor