House File 2617 - Introduced HOUSE FILE BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 726) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for the extension of a reduction in the 2 foundation property tax levy for reorganized or dissolved 3 districts, and the extension of the period during which 4 supplementary weighting may be received as a reorganization 5 incentive by school districts, and providing an effective 6 date. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5592HV 81 9 rn/sh/8 PAG LIN 1 1 Section 1. Section 257.3, subsection 2, paragraph d, Code 1 2 2005, is amended to read as follows: 1 3 d. For purposes of this section, a reorganized school 1 4 district is one which absorbs at least thirty percent of the 1 5 enrollment of the school district affected by a reorganization 1 6 or dissolved during a dissolution and in which action to bring 1 7 about a reorganization or dissolution is initiated by a vote 1 8 of the board of directors or jointly by the affected boards of 1 9 directors to take effect on or after July 1,20022006, and on 1 10 or before July 1,20062009. Each district which initiated, 1 11 by a vote of the board of directors or jointly by the affected 1 12 boards, action to bring about a reorganization or dissolution 1 13 to take effect on or after July 1,20022006, and on or before 1 14 July 1,20062009, shall certify the date and the nature of 1 15 the action taken to the department of education by January 1 1 16 of the year in which the reorganization or dissolution takes 1 17 effect. 1 18 Sec. 2. Section 257.11, subsection 2, paragraph c, Code 1 19 Supplement 2005, is amended by striking the paragraph and 1 20 inserting in lieu thereof the following: 1 21 c. Pupils attending class for all or a substantial portion 1 22 of a school day pursuant to a whole grade sharing agreement 1 23 executed under sections 282.10 through 282.12 shall be 1 24 eligible for supplementary weighting pursuant to this 1 25 subsection. A school district which executes a whole grade 1 26 sharing agreement and which adopts a resolution jointly with 1 27 the other affected boards to study the question of undergoing 1 28 a reorganization or dissolution to take effect on or before 1 29 July 1, 2009, shall receive a weighting of one=tenth of the 1 30 percentage of the pupil's school day during which the pupil 1 31 attends classes in another district, attends classes taught by 1 32 a teacher who is jointly employed under section 280.15, or 1 33 attends classes taught by a teacher who is employed by another 1 34 school district. A district shall be eligible for 1 35 supplementary weighting pursuant to this paragraph for a 2 1 maximum of three years. Receipt of supplementary weighting 2 2 for a second and third year shall be conditioned upon 2 3 submission of information resulting from the study to the 2 4 school budget review committee indicating progress toward the 2 5 objective of reorganization on or before July 1, 2009. 2 6 Sec. 3. Section 257.11A, Code 2005, is amended to read as 2 7 follows: 2 8 257.11A SUPPLEMENTARY WEIGHTING AND SCHOOL REORGANIZATION. 2 9 1. In determining weighted enrollment under section 257.6, 2 10 if the board of directors of a school district has approved a 2 11 contract for sharing pursuant to section 257.11 and the school 2 12 district has approved an action to bring about a 2 13 reorganization to take effect on and after July 1,20022006, 2 14 and on or before July 1,20062009, the reorganized school 2 15 district shall include, for a period of three years following 2 16 the effective date of the reorganization, additional pupils 2 17 added by the application of the supplementary weighting plan, 2 18 equal to the pupils added by the application of the 2 19 supplementary weighting plan in the year preceding the 2 20 reorganization. For the purposes of this subsection, the 2 21 weighted enrollment for the period of three years following 2 22 the effective date of reorganization shall include the 2 23 supplementary weighting in the base year used for determining 2 24 the combined district cost for the first year of the 2 25 reorganization. However, the weighting shall be reduced by 2 26 the supplementary weighting added for a pupil whose residency 2 27 is not within the reorganized district. 2 28 2. For purposes of this section, a reorganized district is 2 29 one in which the reorganization was approved in an election 2 30 pursuant to sections 275.18 and 275.20 and takes effect on or 2 31 after July 1,20022006, and on or before July 1,20062009. 2 32 Each district which initiates, by a vote of the board of 2 33 directors or jointly by the affected boards, action to bring 2 34 about a reorganization or dissolution to take effect on or 2 35 after July 1,20022006, and on or before July 1,20062009, 3 1 shall certify the date and the nature of the action taken to 3 2 the department of education by January 1 of the year in which 3 3 the reorganization or dissolution takes effect. 3 43. Notwithstanding subsection 1, a school district which 3 5 was participating in a whole grade sharing arrangement during 3 6 the budget year beginning July 1, 2001, and which received a 3 7 maximum of two years of supplementary weighting pursuant to 3 8 section 257.11, subsection 2, paragraph "c", shall include 3 9 additional pupils added by the application of the 3 10 supplementary weighting plan, equal to the pupils added by the 3 11 application of the supplementary weighting plan in the year 3 12 preceding the reorganization, for a period of four years 3 13 following the effective date of the reorganization.3 144.3. A school district shall be eligible for a combined 3 15 maximum total of six years of supplementary weighting under 3 16 the provisions of this section and section 257.11, subsection 3 17 2, paragraph "c". 3 18 4. If the board of directors of a school district approved 3 19 a contract for sharing pursuant to section 257.11 and the 3 20 school district approved an action to bring about a 3 21 reorganization to take effect on and after July 1, 2002, and 3 22 on or before July 1, 2006, the reorganized school district 3 23 shall include the additional pupils added by the application 3 24 of the supplementary weighting plan equal in amount and 3 25 duration to the supplementary weighting for which the school 3 26 district was eligible pursuant to the provisions of this 3 27 section in effect prior to July 1, 2006. 3 28 Sec. 4. EFFECTIVE DATE. This Act, being deemed of 3 29 immediate importance, takes effect upon enactment. 3 30 EXPLANATION 3 31 This bill extends existing provisions relating to a reduced 3 32 foundation property tax levy, and to the receipt of 3 33 supplementary weighting, as reorganization incentives to 3 34 school districts. 3 35 The bill provides for an extension of current provisions 4 1 which reduce the level of the foundation property tax levy in 4 2 school districts which have undergone a reorganization or 4 3 dissolution. Currently, the reduction takes place if a school 4 4 district reorganizes or dissolves taking effect on or after 4 5 July 1, 2002, and on or before July 1, 2006. The bill changes 4 6 these dates to 2006 and 2009, respectively. 4 7 The bill extends the dates contained in Code section 4 8 257.11, subsection 2, paragraph "c", for a period of three 4 9 years. Currently, the paragraph provides that a specified 4 10 amount of supplementary weighting may be received by a school 4 11 district that has entered into a whole grade sharing agreement 4 12 pursuant to Code sections 282.10 through 282.12, for a maximum 4 13 of three years, if the school district adopts a resolution 4 14 jointly with the other affected boards to study the question 4 15 of undergoing a reorganization or dissolution to take effect 4 16 on or after July 1, 2001, and on or before July 1, 2006. The 4 17 paragraph also currently provides that a school district that 4 18 was not participating in a whole grade sharing agreement 4 19 during the budget year beginning July 1, 2000, and which 4 20 executes a whole grade sharing agreement in any succeeding 4 21 budget year through the budget year beginning July 1, 2005, 4 22 and that adopts a resolution jointly with the other affected 4 23 boards to study the question of undergoing a reorganization or 4 24 dissolution to take effect on or before July 1, 2006, shall 4 25 receive the supplementary weighting for a period of three 4 26 years. The bill changes the applicable dates so that the 4 27 supplementary weighting is now available to school districts 4 28 participating in a whole grade sharing agreement and studying 4 29 the question of reorganization or dissolution to take effect 4 30 for the school budget year beginning July 1, 2006, through the 4 31 budget year beginning July 1, 2009. The bill also eliminates 4 32 the provision making a distinction between receiving 4 33 supplementary weighting for two versus three years depending 4 34 on whether or not the school district had previously entered 4 35 into a whole grade sharing agreement, such that all school 5 1 districts entering into a whole grade sharing agreement 5 2 qualify for three years of supplementary weighting. 5 3 The bill makes corresponding date changes to Code section 5 4 257.11A, which provides an additional three years of 5 5 supplementary weighting for school districts that were 5 6 receiving it pursuant to Code section 257.11, subsection 2, 5 7 paragraph "c", and then went on to actually reorganize or 5 8 dissolve. Accordingly, the weighting will be available if a 5 9 board of directors of a school district has approved a 5 10 contract for sharing pursuant to Code section 257.11 and the 5 11 school district has approved an action to bring about a 5 12 reorganization to take effect on and after July 1, 2006, and 5 13 on or before July 1, 2009. Additionally, the bill provides 5 14 that school districts shall continue to receive the 5 15 supplementary weighting for which they qualified pursuant to 5 16 the current provisions of Code section 257.11A if the district 5 17 reorganized or dissolved prior to July 1, 2006. 5 18 The bill takes effect upon enactment. 5 19 LSB 5592HV 81 5 20 rn:rj/sh/8