H.F. 359 Section 1. NEW SECTION . 298.17 Transportation cost 1 supplemental levy —— election. 2 1. In order to remove school district transportation costs 3 from the state school foundation program, following approval at 4 election under subsection 2, the board of directors of a school 5 district may certify for levy by April 15 of the school year 6 preceding the budget year, a tax on all taxable property in the 7 school district for a transportation cost supplemental levy. 8 2. a. The board of directors of a school district may, on 9 its own motion, or shall, upon receipt of a petition signed 10 by eligible electors equal in number to at least twenty-five 11 percent of the number of voters who voted at the last preceding 12 regular school election, direct the county commissioner of 13 elections to submit to the registered voters of the school 14 district the question of whether to levy the transportation 15 cost supplemental tax not to exceed an amount authorized 16 under subsection 3. The question shall be submitted at an 17 election held on a date specified in section 39.2, subsection 18 4, paragraph “c” . 19 b. If a majority of the votes cast upon the proposition is 20 in favor of the proposition, the board shall annually certify 21 the amount required for a fiscal year to the county board of 22 supervisors. The board of supervisors shall levy the amount 23 certified. The amount shall be placed in the transportation 24 cost account in the general fund of the district and shall be 25 used only for the purposes specified in this section. 26 c. The proposition to levy the transportation cost 27 supplemental tax is not affected by a change in the boundaries 28 of a school district, except as otherwise provided in this 29 section. If each district involved in school reorganization 30 under chapter 275 has adopted the transportation cost 31 supplemental tax, and if the voters have not voted upon the 32 proposition to levy the transportation cost supplemental tax 33 in the reorganized district, the existing transportation 34 cost supplemental tax shall be in effect for the reorganized 35 -1- LSB 2353YH (4) 86 md/sc 1/ 4

H.F. 359 district for the least amount that has been approved in any of 1 the districts and until discontinued pursuant to this section. 2 d. Once approved at an election, the authority of the board 3 to levy and collect the transportation cost supplemental tax 4 shall continue until the board votes to rescind the levy and 5 collection of the tax or the voters of the school district 6 by majority vote approve the discontinuance of the levy and 7 collection of the tax. The tax shall be discontinued in the 8 manner provided for imposition of the tax under this section. 9 3. The amount certified by a school district for levy 10 under this section for a school budget year shall not exceed 11 an amount equal to the district’s actual cost for all children 12 transported for the budget year preceding the base year 13 pursuant to section 285.1, subsection 12, less the amount 14 received for transporting nonpublic school pupils under section 15 285.1. However, such resulting amount shall be reduced by 16 the amount of transportation assistance aid received by the 17 district under section 257.31, subsection 17, for the same 18 budget year, if applicable. 19 4. a. Revenues received by a school district from a levy 20 imposed under this section shall be expended only for the 21 transportation costs of the district including but not limited 22 to the cost of repairing, maintaining, and fueling school 23 district transportation equipment and school buses, as defined 24 in section 321.1, subsection 69. 25 b. If a school district imposes the levy under this section 26 for a budget year, except for transportation assistance 27 aid received under section 257.31, subsection 17, and 28 notwithstanding any provision of law to the contrary, the 29 school district shall not use school district general fund 30 revenues that are outside the district’s transportation cost 31 account for any purpose designated under paragraph “a” for that 32 same budget year. 33 5. Except for an adjustment in the amount certified for 34 levy under subsection 3, imposition of a transportation cost 35 -2- LSB 2353YH (4) 86 md/sc 2/ 4

H.F. 359 supplemental levy under this section shall not affect a school 1 district’s eligibility for transportation assistance under 2 section 257.31, subsection 17. 3 6. Revenues received by a school district under this section 4 are miscellaneous income and shall not be included in district 5 cost. 6 Sec. 2. APPLICABILITY. This Act applies to school budget 7 years beginning on or after July 1, 2016. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill authorizes the board of directors of a school 12 district, following voter approval, to certify for levy a 13 tax on all taxable property in the school district for a 14 transportation cost supplemental levy. 15 The board of directors of a school district may, on its 16 own motion, or shall, upon receipt of a petition signed by 17 eligible electors equal in number to at least 25 percent of 18 the number of voters who voted at the last preceding school 19 election, direct the county commissioner of elections to submit 20 to the registered voters of the school district the question of 21 whether to levy the transportation cost supplemental tax. If a 22 majority of the votes cast upon the proposition is in favor of 23 the proposition, the board shall annually certify the amount 24 required for a fiscal year to the county board of supervisors. 25 The amount collected from the levy shall be placed in the 26 transportation cost account in the general fund of the district 27 and shall be used only for the purposes specified in the bill. 28 Once approved at an election, the authority of the board to 29 levy and collect the transportation cost supplemental tax 30 shall continue until the board votes to rescind the levy and 31 collection of the tax or the voters of the school district 32 by majority vote approve the discontinuance of the levy and 33 collection of the tax. 34 The amount certified by a school district for levy for a 35 -3- LSB 2353YH (4) 86 md/sc 3/ 4

H.F. 359 school budget year shall not exceed an amount equal to the 1 district’s actual cost for all children transported for the 2 budget year preceding the base year, less the amount received 3 for transporting nonpublic school pupils. The bill provides, 4 however, that such resulting amount shall be reduced by 5 the amount of transportation assistance aid received by the 6 district under Code section 257.31(17) for the same budget 7 year, if applicable. 8 The bill specifies that revenues received by a school 9 district from a levy imposed under the bill shall be expended 10 only for the transportation costs of the district, including 11 but not limited to the cost of repairing, maintaining, and 12 fueling school district transportation equipment and school 13 buses. The bill provides that except for an adjustment in 14 the amount that may be certified for levy, imposition of a 15 transportation supplemental levy does not affect a school 16 district’s eligibility for transportation assistance under Code 17 section 257.31(17). 18 The bill provides that if a school district imposes the 19 transportation cost supplemental levy for a budget year, 20 except for transportation assistance aid received under Code 21 section 257.31, and notwithstanding any provision of law to the 22 contrary, the school district may not use the school district’s 23 general fund revenues that are outside the district’s 24 transportation cost account for any purpose designated under 25 the bill for that same budget year. 26 The bill specifies that revenues received by a school 27 district from a transportation cost supplemental levy are 28 miscellaneous income and shall not be included in district 29 cost. 30 The bill applies to school budget years beginning on or after 31 July 1, 2016. 32 -4- LSB 2353YH (4) 86 md/sc 4/ 4