H.F. 2438 Section 1. Section 423.2, subsection 11, paragraph b, 1 subparagraph (3), Code 2018, is amended to read as follows: 2 (3) Transfer one-sixth of the remaining revenues to the 3 secure an advanced vision for education fund created in section 4 423F.2 . This subparagraph (3) is repealed December 31, 2029 5 January 1, 2050 . 6 Sec. 2. Section 423.2, subsection 14, Code 2018, is amended 7 to read as follows: 8 14. The sales tax rate of six percent is reduced to five 9 percent on January 1, 2030 2050 . 10 Sec. 3. Section 423.5, subsection 5, Code 2018, is amended 11 to read as follows: 12 5. The use tax rate of six percent is reduced to five 13 percent on January 1, 2030 2050 . 14 Sec. 4. Section 423.43, subsection 1, paragraph b, Code 15 2018, is amended to read as follows: 16 b. Subsequent to the deposit into the general fund of 17 the state and after the transfer of such revenues collected 18 under chapter 423B , the department shall transfer one-sixth of 19 such remaining revenues to the secure an advanced vision for 20 education fund created in section 423F.2 . This paragraph is 21 repealed December 31, 2029 January 1, 2050 . 22 Sec. 5. Section 423F.2, subsection 3, Code 2018, is amended 23 to read as follows: 24 3. a. The moneys available in a fiscal year in the secure 25 an advanced vision for education fund shall be distributed by 26 the department of revenue to each school district on a per 27 pupil basis calculated using each school district’s budget 28 enrollment, as defined in section 257.6 , for that fiscal year. 29 b. (1) Prior to distribution of moneys in the secure an 30 advanced vision for education fund to school districts, two and 31 one-tenths percent of the moneys available in a an amount equal 32 to the equity transfer amount for the fiscal year shall be 33 distributed and credited to the property tax equity and relief 34 fund created in section 257.16A . 35 -1- LSB 5423HV (2) 87 md/jh 1/ 11

H.F. 2438 (2) For purposes of this subsection, the equity transfer 1 amount is determined by multiplying the equity transfer 2 percentage by the amount of moneys available in the secure an 3 advanced vision for education fund in the fiscal year. 4 (a) For the fiscal year beginning July 1, 2017, the equity 5 transfer percentage is two and one-tenths percent. 6 (b) For each fiscal year beginning on or after July 1, 2018, 7 the equity transfer percentage is equal to the equity transfer 8 percentage for the immediately preceding fiscal year, unless 9 the amount of moneys available in the secure an advanced vision 10 for education fund in the fiscal year equals or exceeds one 11 hundred two percent of the amount of moneys available in the 12 fund for the immediately preceding fiscal year, in which case 13 the equity transfer percentage shall be the equity transfer 14 percentage for the immediately preceding fiscal year plus one 15 percent subject to the limitation in subparagraph division (c). 16 (c) If the equity transfer percentage calculated under 17 subparagraph division (b) exceeds ten percent, the equity 18 transfer percentage for that fiscal year shall be ten percent. 19 Sec. 6. Section 423F.3, subsection 3, paragraph b, Code 20 2018, is amended to read as follows: 21 b. (1) If the board of directors intends to use funds for 22 purposes other than those listed in paragraph “a” , or change the 23 use of funds to purposes other than those listed in paragraph 24 “a” , the board shall adopt a revenue purpose statement or amend 25 an existing revenue purpose statement , subject to approval of 26 the electors, listing the proposed use of the funds. School 27 districts shall submit the statement to the voters no later 28 than sixty days prior to the expiration of any existing revenue 29 purpose statement or change in use not included in the existing 30 revenue purpose statement. 31 (2) (a) Notwithstanding any provision of law to the 32 contrary, for each school district with an existing revenue 33 purpose statement for the use of revenues from the secure an 34 advanced vision for education fund adopted under this paragraph 35 -2- LSB 5423HV (2) 87 md/jh 2/ 11

H.F. 2438 or adopted under another provision of law before July 1, 2018, 1 such revenue purpose statement shall terminate and be of no 2 further force and effect on January 1, 2023. If such a school 3 district intends to use funds for purposes other than those 4 listed in paragraph “a” and does not intend to operate without 5 a revenue purpose statement on or after January 1, 2023, the 6 board of directors shall submit a revenue purpose statement for 7 approval by the electors under subparagraph (1) on or after 8 July 1, 2018, and such revenue purpose statement submitted 9 to the electors shall include all proposed uses including 10 those previously approved by the electors, if applicable. A 11 revenue purpose statement submitted to the electors under this 12 subparagraph shall also include a statement on the ballot, 13 which shall be in substantially the following form: 14 If a majority of eligible electors voting on the question fail 15 to approve this revenue purpose statement, revenues received 16 by the school district from the secure an advanced vision 17 for education fund shall first be expended for . . . . 18 (State the purposes in the order listed in subsection 1 of 19 this section for which the revenues received by the school 20 district under this chapter will be expended based on the bonds 21 outstanding and levies in effect for the school district on the 22 date of the election.) 23 (b) If a revenue purpose statement is terminated under the 24 provisions of this subparagraph, such termination shall not 25 affect the validity of or a first lien on bonds issued under 26 section 423E.5, Code 2018, or section 423F.5 prior to January 27 1, 2023, or the validity of a contract or other obligation of 28 the school district secured in whole or in part by or requiring 29 the payment of funds received under this chapter in effect 30 prior to January 1, 2023. 31 Sec. 7. Section 423F.3, subsection 5, unnumbered paragraph 32 1, Code 2018, is amended to read as follows: 33 A school district with a certified enrollment of fewer 34 than two three hundred fifty pupils in the entire district or 35 -3- LSB 5423HV (2) 87 md/jh 3/ 11

H.F. 2438 certified enrollment of fewer than one hundred forty pupils 1 in high school shall not expend the amount received for new 2 construction without prior application to the department of 3 education and receipt of a certificate of need pursuant to 4 this subsection . A certificate of need is not required for 5 repairing schoolhouses or buildings, equipment, technology, or 6 transportation equipment for transporting students as provided 7 in section 298.3 , or for construction necessary for compliance 8 with the federal Americans With Disabilities Act pursuant to 42 9 U.S.C. §12101 – 12117. In determining whether a certificate of 10 need shall be issued or denied, the department shall consider 11 all of the following: 12 Sec. 8. Section 423F.3, subsection 5, paragraph b, Code 13 2018, is amended to read as follows: 14 b. The infeasibility cost-benefit analysis of remodeling, 15 reconstructing, or repairing existing buildings. 16 Sec. 9. Section 423F.3, subsection 5, Code 2018, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . i. Benefits and effects of the new 19 construction on student learning. 20 Sec. 10. Section 423F.3, Code 2018, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 6A. a. Prior to approving the use 23 of revenues received under this chapter for an athletic 24 facility infrastructure project within the scope of the 25 school district’s approved revenue purpose statement or 26 pursuant to subsection 4 for a school district without an 27 approved revenue statement, the board of directors shall adopt 28 a resolution setting forth the proposal for the athletic 29 facility infrastructure project and hold an additional public 30 hearing on the issue of construction of the athletic facility. 31 Notice of the time and place of the public hearing shall be 32 published not less than ten nor more than twenty days before 33 the public hearing in a newspaper which is a newspaper of 34 general circulation in the school district. If at any time 35 -4- LSB 5423HV (2) 87 md/jh 4/ 11

H.F. 2438 prior to the fifteenth day following the hearing, the secretary 1 of the board of directors receives a petition containing the 2 required number of signatures and asking that the question 3 of the approval of the use of revenues for the athletic 4 facility infrastructure project be submitted to the voters 5 of the school district, the board of directors shall either 6 rescind the board’s resolution for the use of revenues for 7 the athletic facility infrastructure project or direct the 8 county commissioner of elections to submit the question to the 9 registered voters of the school district at an election held 10 on a date specified in section 39.2, subsection 4, paragraph 11 “c” . The petition must be signed by eligible electors equal 12 in number to not less than one hundred or thirty percent of 13 the number of voters at the last preceding regular school 14 election, whichever is greater. If a majority of those 15 voting on the question favors the use of the revenues for the 16 athletic facility infrastructure project, the board shall be 17 authorized to approve such use by resolution of the board. If 18 a majority of those voting on the question does not favor the 19 use of the revenues for the athletic facility infrastructure 20 project, the board of directors shall rescind the board’s 21 resolution for the use of revenues for the athletic facility 22 infrastructure project. If a petition is not received by the 23 board of directors within the prescribed time period, the board 24 of directors may approve the use of revenues for the athletic 25 facility infrastructure project without voter approval. 26 b. After fourteen days from the date of the hearing under 27 paragraph “a” or fourteen days after the date of the election 28 held under paragraph “a” , if applicable, whichever is later, an 29 action shall not be brought questioning the board of directors’ 30 authority to use funds for the athletic facility infrastructure 31 project or questioning the legality of any proceedings in 32 connection with the authorization of such use. 33 c. For purposes of this subsection: 34 (1) “Athletic facility” means a building or structure, or 35 -5- LSB 5423HV (2) 87 md/jh 5/ 11

H.F. 2438 portion thereof, that is not physically attached to a student 1 attendance center. 2 (2) “Athletic facility infrastructure project” means a school 3 infrastructure project that includes in whole or in part the 4 construction of an athletic facility. 5 (3) “Construction” does not include replacement, upgrade, 6 repair, or maintenance of an existing facility. 7 Sec. 11. Section 423F.4, Code 2018, is amended to read as 8 follows: 9 423F.4 Borrowing authority for school districts. 10 1. A Subject to the conditions established under subsection 11 2, a school district may anticipate its share of the revenues 12 under section 423F.2 by issuing bonds in the manner provided in 13 section 423E.5 , Code 2018 . However, to the extent any school 14 district has issued bonds anticipating the proceeds of an 15 extended local sales and services tax for school infrastructure 16 purposes imposed by a county pursuant to former chapter 423E, 17 Code and Code Supplement 2007, prior to July 1, 2008, the 18 pledge of such revenues for the payment of principal and 19 interest on such bonds shall be replaced by a pledge of its 20 share of the revenues under section 423F.2 . 21 2. a. Bonds issued on or after July 1, 2018, shall not be 22 sold at public sale as provided in chapter 75, or at a private 23 sale, without notice and hearing. Notice of the time and place 24 of the public hearing shall be published not less than ten nor 25 more than twenty days before the public hearing in a newspaper 26 which is a newspaper of general circulation in the school 27 district. 28 b. For bonds subject to the requirements of paragraph 29 “a” , if at any time prior to the fifteenth day following the 30 hearing, the secretary of the board of directors receives a 31 petition containing the required number of signatures and 32 asking that the question of the issuance of such bonds be 33 submitted to the voters of the school district, the board shall 34 either rescind its adoption of the resolution or direct the 35 -6- LSB 5423HV (2) 87 md/jh 6/ 11

H.F. 2438 county commissioner of elections to submit the question to the 1 registered voters of the school district at an election held 2 on a date specified in section 39.2, subsection 4, paragraph 3 “c” . The petition must be signed by eligible electors equal in 4 number to not less than one hundred or thirty percent of the 5 number of voters at the last preceding regular school election, 6 whichever is greater. If the board submits the question at an 7 election and a majority of those voting on the question favors 8 issuance of the bonds, the board shall be authorized to issue 9 the bonds. 10 c. After fourteen days from the date of the hearing under 11 paragraph “a” or fourteen days after the date of the election 12 held under paragraph “b” , if applicable, whichever is later, 13 an action shall not be brought questioning the legality of 14 any bonds or the power of the authority to issue any bonds 15 or to the legality of any proceedings in connection with the 16 authorization or issuance of the bonds. 17 Sec. 12. Section 423F.6, Code 2018, is amended to read as 18 follows: 19 423F.6 Repeal. 20 This chapter is repealed December 31, 2029 January 1, 2050 . 21 Sec. 13. STATE MANDATE FUNDING SPECIFIED. In accordance 22 with section 25B.2, subsection 3, the state cost of requiring 23 compliance with any state mandate included in this Act shall 24 be paid by a school district from state school foundation aid 25 received by the school district under section 257.16. This 26 specification of the payment of the state cost shall be deemed 27 to meet all of the state funding-related requirements of 28 section 25B.2, subsection 3, and no additional state funding 29 shall be necessary for the full implementation of this Act 30 by and enforcement of this Act against all affected school 31 districts. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -7- LSB 5423HV (2) 87 md/jh 7/ 11

H.F. 2438 Code section 423.2 imposes a state tax of 6 percent upon 1 the sales price of all sales of tangible personal property, 2 consisting of goods, wares, merchandise, and other items 3 designated by statute, sold at retail in the state to consumers 4 or users, except as otherwise provided by Code chapter 423. 5 Generally, by operation of law, a sale subject to the sales 6 tax is also subject to the use tax. Following the transfer 7 of amounts required by statute, if applicable, one-sixth of 8 the remaining state sales tax revenue from the 6 percent tax 9 is transferred to the secure an advanced vision for education 10 (SAVE) fund created in Code section 423F.2. Moneys in the SAVE 11 fund are allocated to school districts on a per pupil basis to 12 be used for infrastructure and property tax reduction purposes 13 specified in Code chapter 423F. Under current law, the sales 14 tax rate of 6 percent is reduced to 5 percent on January 1, 15 2030, and Code chapter 423F, along with other corresponding 16 provisions, is repealed December 31, 2029. 17 This bill extends the 6 percent sales tax rate, the 18 allocation to the SAVE fund, and the statutory repeal of Code 19 chapter 423F until January 1, 2050. 20 Code section 423F.2 provides that prior to distribution of 21 SAVE revenues to school districts, 2.1 percent of the moneys 22 available in the SAVE fund are distributed and credited to 23 the property tax equity and relief (PTER) fund to be used for 24 additional property tax levy aid. The bill provides that 25 for each fiscal year beginning on or after July 1, 2018, the 26 percentage used to determine the amount of the transfer from 27 the SAVE fund to the PTER fund is equal to the percentage for 28 the immediately preceding fiscal year, unless the amount of 29 money available in the SAVE fund in the fiscal year is equal to 30 or exceeds 102 percent of the amount of money available in the 31 SAVE fund for the immediately preceding fiscal year, in which 32 case the percentage shall be the percentage for the immediately 33 preceding fiscal year plus 1 percent. However, the bill caps 34 the percentage at 10 percent. 35 -8- LSB 5423HV (2) 87 md/jh 8/ 11

H.F. 2438 Under the bill, revenue purpose statements for the use of 1 SAVE fund revenues adopted before July 1, 2018, shall terminate 2 and be of no further force and effect on January 1, 2023. 3 If a school district intends to use SAVE fund revenues for 4 purposes other than those which can be approved by the school 5 board alone and does not intend to operate without a revenue 6 purpose statement on or after January 1, 2023, the school 7 board must submit a revenue purpose statement for approval 8 by the electors on or after July 1, 2018, and such revenue 9 purpose statement submitted to the electors shall include 10 all proposed uses including those previously approved by the 11 electors, if applicable. The bill specifies that if a revenue 12 purpose statement is terminated on January 1, 2023, under the 13 provisions of the bill, such termination shall not affect the 14 validity of or a first lien on bonds issued under Code sections 15 423E.5 and 423F.5 prior to January 1, 2023, or the validity 16 of a contract or other obligation of the school district 17 secured in whole or in part by or requiring the payment of SAVE 18 revenues in effect prior to January 1, 2023. 19 The bill provides that prior to approving the use of SAVE 20 revenues for an athletic facility infrastructure project 21 that is defined in the bill to mean a school infrastructure 22 project that includes in whole or in part, the construction 23 of an athletic facility, the board of directors must first 24 hold an additional public hearing on the issue of the athletic 25 facility. The bill defines “athletic facility” to mean 26 a building or structure, or portion thereof, that is not 27 physically attached to a student attendance center. If at any 28 time prior to the 15th day following the hearing, the secretary 29 of the board of directors receives a petition containing the 30 required number of signatures and asking that the question of 31 the approval of the use of revenues for the athletic facility 32 infrastructure project be submitted to the voters of the school 33 district, the board of directors shall either rescind the 34 resolution for use of SAVE revenues for the athletic facility 35 -9- LSB 5423HV (2) 87 md/jh 9/ 11

H.F. 2438 infrastructure project or direct the county commissioner of 1 elections to submit the question to the registered voters of 2 the school district. If a majority of those voting on the 3 question favors the use of the SAVE revenues for the athletic 4 facility infrastructure project, the board shall be authorized 5 to approve such use by resolution of the board. If a majority 6 of those voting on the question does not favor the use of the 7 SAVE revenues for the school infrastructure project, the board 8 of directors shall rescind the board’s resolution for use of 9 SAVE revenues for the athletic facility infrastructure project. 10 If a petition is not received by the board of directors 11 within the prescribed time period, the board of directors may 12 approve the use of SAVE revenues for the athletic facility 13 infrastructure project without voter approval. The bill also 14 establishes limitations on the period of time to bring an 15 action to question the authority to use funds for such purpose 16 or the legality of any proceedings in connection with the 17 authorization of such use. 18 Current law authorizes a school district to anticipate 19 its share of SAVE fund revenues by issuing bonds without 20 voter approval. The bill provides that revenue bonds issued 21 on or after July 1, 2018, shall not be sold at public sale 22 or at a private sale without notice and a public hearing. 23 Additionally, if at any time prior to the 15th day following 24 the hearing, the secretary of the board of directors receives 25 a petition containing the required number of signatures and 26 asking that the question of the issuance of such bonds be 27 submitted to the voters of the school district, the school 28 board shall either rescind its adoption of the resolution or 29 direct the county commissioner of elections to submit the 30 question to the registered voters of the school district. The 31 petition must be signed by eligible electors equal in number to 32 not less than 100 or 30 percent of the number of voters at the 33 last preceding regular school election, whichever is greater. 34 If the school board submits the question at an election and a 35 -10- LSB 5423HV (2) 87 md/jh 10/ 11

H.F. 2438 majority of those voting on the question favors issuance of the 1 bonds, the board shall be authorized to issue the bonds. The 2 bill also places limitations on the period of time during which 3 an action questioning the legality or procedural compliance for 4 the issuance of such bonds may be brought. 5 Currently, a school district with a certified enrollment 6 of fewer than 250 pupils in the entire district or certified 7 enrollment of fewer than 100 pupils in high school must apply 8 to the department of education for a certificate of need 9 before the school district can expend the supplemental school 10 infrastructure amount received for new construction or for 11 payments for bonds issued for new construction against the 12 supplemental school infrastructure amount. The bill increases 13 the enrollment thresholds to a total enrollment of 350 pupils 14 and to a high school enrollment of 140 pupils. 15 The bill also modifies the criteria to be used by the 16 department of education in determining whether to issue a 17 certificate of need to include the cost-benefit analysis of 18 remodeling, reconstructing, or repairing existing buildings 19 versus new construction and consideration of the benefit of the 20 new construction on student learning. 21 The bill may include a state mandate as defined in Code 22 section 25B.3. The bill requires that the state cost of 23 any state mandate included in the bill be paid by a school 24 district from state school foundation aid received by the 25 school district under section 257.16. The specification is 26 deemed to constitute state compliance with any state mandate 27 funding-related requirements of Code section 25B.2. The 28 inclusion of this specification is intended to reinstate the 29 requirement of political subdivisions to comply with any state 30 mandates included in the bill. 31 -11- LSB 5423HV (2) 87 md/jh 11/ 11