H.F. 2360 Section 1. Section 275.12, subsection 5, Code 2014, is 1 amended to read as follows: 2 5. The petition may also include a provision that the 3 voter-approved physical plant and equipment levy provided in 4 section 298.2 , the transportation cost supplement program 5 provided in section 298.17, or both will be voted upon at the 6 election conducted under section 275.18 . 7 Sec. 2. Section 275.20, Code 2014, is amended to read as 8 follows: 9 275.20 Separate vote in existing districts. 10 The voters shall vote separately in each existing school 11 district affected and voters residing in the entire existing 12 district are eligible to vote upon the proposition to create 13 a new school corporation and , if provided for in the petition 14 under section 275.12, subsection 5, the proposition to levy 15 the voter-approved physical plant and equipment levy under 16 section 298.2 , if the petition included a provision for a vote 17 to authorize the levy the proposition to participate in the 18 transportation cost supplement program under section 298.17, or 19 both . If a proposition receives a majority of the votes cast 20 in each of at least seventy-five percent of the districts, and 21 also a majority of the total number of votes cast in all of the 22 districts, the proposition is carried. 23 Sec. 3. Section 298.14, unnumbered paragraphs 1 and 2, Code 24 2014, are amended to read as follows: 25 For each fiscal year, the cumulative total of the percents of 26 surtax approved by the board of directors of a school district 27 and collected by the department of revenue under sections 28 257.21 , 257.29 , and 298.2 , and 298.17, and the enrichment 29 surtax under section 442.15 , Code 1989, and an income surtax 30 collected by a political subdivision under chapter 422D , shall 31 not exceed twenty percent. 32 A school district income surtax fund is created in the 33 office of treasurer of state. Income surtaxes collected by the 34 department of revenue under sections 257.21 , 257.29 , and 298.2 , 35 -1- LSB 2078HV (3) 85 md/sc 1/ 6

H.F. 2360 and 298.17, and section 442.15 , Code 1989, shall be deposited 1 in the school district income surtax fund to the credit of each 2 school district. A separate accounting of each surtax, by 3 school district, shall be maintained. 4 Sec. 4. NEW SECTION . 298.17 Transportation cost supplement 5 program —— election. 6 1. a. A transportation cost supplement program is 7 established to provide additional funding for school districts 8 in which the district transportation costs per pupil exceed the 9 state average transportation costs per pupil, as those amounts 10 are determined under section 257.31, subsection 17, paragraph 11 “c” . 12 b. The board of directors of a school district that 13 satisfies the criteria of paragraph “a” , may direct the 14 county commissioner of elections to submit the question of 15 participation in the transportation cost supplement program to 16 the registered voters of the school district at an election 17 held on a date specified in section 39.2, subsection 4, 18 paragraph “c” . The question submitted to the voters of the 19 school district shall specify the period of consecutive years 20 that the school district may participate in the program, 21 if otherwise eligible under paragraph “a” , not to exceed 22 ten consecutive years. If a majority of those voting on 23 the question favors participation in the program, the board 24 shall adopt a resolution to participate and shall certify the 25 results of the election to the department of management and the 26 district shall participate in the program. If a majority of 27 those voting on the question does not favor participation, the 28 district shall not participate in the program. 29 2. The transportation cost supplement program shall provide 30 additional revenues each fiscal year not to exceed an amount 31 equal to the district’s actual enrollment used to calculate 32 the district’s average transportation costs per pupil under 33 section 257.31, subsection 17, paragraph “c” , multiplied by 34 the remainder of the district’s average transportation costs 35 -2- LSB 2078HV (3) 85 md/sc 2/ 6

H.F. 2360 per pupil minus the state average transportation costs per 1 pupil, as those amounts are determined under section 257.31, 2 subsection 17, paragraph “c” . However, such resulting amount 3 shall be reduced by the amount of transportation assistance 4 aid received by the district under section 257.31, subsection 5 17, for the same budget year, as defined in section 257.2, if 6 applicable. Certification of a district’s participation for a 7 budget year, the method of funding, and the amount to be raised 8 shall be made to the department of management not later than 9 April 15 of the base year, as defined in section 257.2. 10 3. The transportation cost supplement program shall be 11 funded by either a transportation cost supplement property 12 tax or by the combination of a transportation cost supplement 13 property tax and a transportation cost supplement income 14 surtax. The method of raising the transportation cost 15 supplement program moneys shall be determined by the board. 16 Subject to the limitation in section 298.14, if the board 17 uses a combination of a transportation property tax and a 18 transportation cost supplement income surtax, the board shall 19 determine the percent of income surtax to be imposed, expressed 20 as full percentage points, not to exceed twenty percent. 21 4. The department of management shall establish the amount 22 of the transportation cost supplement property tax to be levied 23 or the amount of the combination of the transportation cost 24 supplement property tax to be levied and the amount of the 25 transportation cost supplement income surtax to be imposed for 26 each school year that the transportation cost supplement amount 27 is authorized and the school district eligible under subsection 28 1, paragraph “a” . The transportation cost supplement property 29 tax and income surtax, if an income surtax is imposed, shall be 30 levied and imposed, collected, and paid to the school district 31 in the manner provided for the instructional support program in 32 sections 257.21 through 257.26. 33 5. Revenues received by a school district from a 34 transportation cost supplement property tax or income surtax 35 -3- LSB 2078HV (3) 85 md/sc 3/ 6

H.F. 2360 imposed under this section shall be deposited in the general 1 fund of the school district and expended only for the cost 2 of repairing, maintaining, and fueling school district 3 transportation equipment and school buses, as defined in 4 section 321.1, subsection 69. Revenues received by a school 5 district under this section are miscellaneous income. 6 6. Except for an adjustment in the total amount authorized 7 to be collected under subsection 2, participation in the 8 transportation cost supplement program under this section shall 9 not affect a school district’s eligibility for transportation 10 assistance under section 257.31, subsection 17. 11 7. Once approved at an election, the authority of the 12 board to use the transportation cost supplement program 13 shall continue, subject to the period of years authorized at 14 election, until the board votes to discontinue the program or 15 the voters of the school district by majority vote order the 16 discontinuance of the program. The board shall submit at an 17 election held on a date specified in section 39.2, subsection 18 4, paragraph “c” , the question of whether to discontinue the 19 program upon the receipt of a petition signed by not less than 20 one hundred eligible electors or thirty percent of the number 21 of electors voting at the last preceding school election, 22 whichever is greater. 23 8. Participation in the transportation cost supplement 24 program is not affected by a change in the boundaries of the 25 school district. If each school district involved in a school 26 reorganization under chapter 275 has approved a transportation 27 cost supplement program, and if the voters have not voted upon 28 the question of participation in the program in the reorganized 29 district, the program shall be in effect for the reorganized 30 district that has been approved for the least amount and the 31 shortest time in any of the districts. 32 Sec. 5. APPLICABILITY. This Act applies to school budget 33 years beginning on or after July 1, 2015. 34 EXPLANATION 35 -4- LSB 2078HV (3) 85 md/sc 4/ 6

H.F. 2360 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill establishes a transportation cost supplement 3 program to provide additional funding for school districts 4 in which the district transportation costs per pupil exceed 5 the state average transportation costs per pupil. Under the 6 bill, the board of directors of such a school district may 7 direct the county commissioner of elections to submit the 8 question of participation in the program to the registered 9 voters of the school district. The question submitted to the 10 voters shall specify the period of consecutive years that the 11 school district may participate in the program not to exceed 10 12 consecutive years. 13 The transportation cost supplement program provides 14 additional revenue each fiscal year not to exceed an amount 15 equal to the district’s actual enrollment used to calculate 16 the district’s average transportation costs, multiplied by 17 the remainder of the district’s average transportation costs 18 per pupil minus the state average transportation costs per 19 pupil. This amount is required to be reduced by the amount of 20 transportation assistance aid received by the district under 21 current Code section 257.31(17), if any, for the same budget 22 year. 23 The bill authorizes the transportation cost supplement 24 program to be funded by either a transportation cost supplement 25 property tax or by the combination of a transportation cost 26 supplement property tax and a transportation cost supplement 27 income surtax. An income surtax imposed as part of the 28 transportation cost supplement program is subject to the 20 29 percent cumulative income surtax cap under Code section 298.14. 30 Revenues received by a school district from a transportation 31 cost supplement property tax or income surtax shall be 32 deposited in the general fund of the school district and 33 expended only for the cost of repairing, maintaining, and 34 fueling school district transportation equipment and school 35 -5- LSB 2078HV (3) 85 md/sc 5/ 6

H.F. 2360 buses, as defined in Code section 321.1(69). Revenues received 1 by a school district under this section are miscellaneous 2 income. 3 The bill provides that the transportation cost supplement 4 program may be discontinued by either school board action or 5 by petition and election and includes provisions relating to 6 participation in the transportation cost supplement program by 7 school districts involved in a school reorganization under Code 8 chapter 275. 9 The bill applies to school budget years beginning on or after 10 July 1, 2015. 11 -6- LSB 2078HV (3) 85 md/sc 6/ 6