House File 2481 - Introduced HOUSE FILE 2481 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2438) (SUCCESSOR TO HSB 647) A BILL FOR An Act relating to school funding by modifying provisions 1 relating to the collection of sales tax for deposit in the 2 secure an advanced vision for education fund, provisions 3 relating to the use of tax revenue from the secure an 4 advanced vision for education fund, and provisions relating 5 to the calculation of adjusted additional property tax levy 6 aid, and making appropriations. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5423HZ (3) 87 md/jh

H.F. 2481 Section 1. Section 257.15, subsection 4, paragraph b, Code 1 2018, is amended to read as follows: 2 b. After lowering all school district adjusted additional 3 property tax levy rates to the statewide maximum adjusted 4 additional property tax levy rate under paragraph “a” , the 5 department of management shall use any remaining funds at the 6 end of the calendar year to further lower additional property 7 taxes by increasing for the budget year beginning the following 8 July 1, the state regular program foundation base per pupil 9 percentage under section 257.1 . Moneys used pursuant to this 10 paragraph shall supplant an equal amount of the appropriation 11 made from the general fund of the state pursuant to section 12 257.16 that represents the increase in state foundation aid. 13 Sec. 2. NEW SECTION . 257.16C Foundation base percentage 14 fund. 15 1. A foundation base percentage fund is created as a 16 separate and distinct fund in the state treasury under the 17 control of the department of management. Moneys in the fund 18 include revenues credited to the fund, appropriations made to 19 the fund, and other moneys deposited into the fund. 20 2. There is appropriated annually all moneys in the fund to 21 the department of management for purposes of further lowering 22 additional property taxes by increasing for the budget year the 23 regular program foundation base per pupil percentage pursuant 24 to section 257.1, but not to exceed one hundred percent. An 25 increase in the regular program foundation base per pupil 26 percentage for a budget year shall not apply to any future 27 budget year. 28 3. Notwithstanding section 8.33, any moneys remaining in 29 the foundation base percentage fund at the end of a fiscal year 30 shall not revert to any other fund but shall remain in the 31 foundation base percentage fund for use as provided in this 32 section for the following fiscal year. 33 Sec. 3. NEW SECTION . 257.51 Career academy fund —— grant 34 program. 35 -1- LSB 5423HZ (3) 87 md/jh 1/ 16

H.F. 2481 1. A career academy fund is created and established as 1 a separate and distinct fund in the state treasury under the 2 control of the department. 3 2. a. In addition to moneys deposited in the career academy 4 fund pursuant to section 423F.2, the department may accept 5 gifts, grants, bequests, and other private contributions, as 6 well as state or federal funds, and shall deposit the moneys in 7 the fund to be used for purposes of this section. Moneys in the 8 fund are appropriated to the department and shall be used for 9 the purposes of this section. 10 b. Notwithstanding section 8.33, moneys in the fund 11 that remain unencumbered or unobligated at the close of the 12 fiscal year shall not revert but shall remain available for 13 expenditure for the purposes of this section in succeeding 14 fiscal years. Notwithstanding section 12C.7, subsection 2, 15 interest earned on moneys in the career academy fund shall be 16 credited to the fund. 17 3. The department shall adopt rules to establish and 18 administer a career academy grant program to provide for the 19 allocation of money in the fund in the form of competitive 20 grants, not to exceed one million dollars per grant, to 21 school corporations for career academy infrastructure, career 22 academy equipment, or both, in accordance with the goals of 23 this section and to further the goals of the establishment 24 and operation of career academies under section 258.15. The 25 rules adopted by the department shall specify the eligibility 26 of applicants and eligible items for grant funding. Priority 27 for grants shall first be given to applications to establish 28 new career academies that are organized as regional career 29 and technical education planning partnerships pursuant to 30 section 258.14 with three or more school districts. Subsequent 31 priority shall be given to applications for expanding and 32 updating existing facilities and infrastructure to serve as 33 career academies. 34 Sec. 4. Section 423.2, subsection 11, paragraph b, 35 -2- LSB 5423HZ (3) 87 md/jh 2/ 16

H.F. 2481 subparagraph (3), Code 2018, is amended to read as follows: 1 (3) Transfer one-sixth of the remaining revenues to the 2 secure an advanced vision for education fund created in section 3 423F.2 . This subparagraph (3) is repealed December 31, 2029 4 January 1, 2050 . 5 Sec. 5. Section 423.2, subsection 14, Code 2018, is amended 6 to read as follows: 7 14. The sales tax rate of six percent is reduced to five 8 percent on January 1, 2030 2050 . 9 Sec. 6. Section 423.5, subsection 5, Code 2018, is amended 10 to read as follows: 11 5. The use tax rate of six percent is reduced to five 12 percent on January 1, 2030 2050 . 13 Sec. 7. Section 423.43, subsection 1, paragraph b, Code 14 2018, is amended to read as follows: 15 b. Subsequent to the deposit into the general fund of 16 the state and after the transfer of such revenues collected 17 under chapter 423B , the department shall transfer one-sixth of 18 such remaining revenues to the secure an advanced vision for 19 education fund created in section 423F.2 . This paragraph is 20 repealed December 31, 2029 January 1, 2050 . 21 Sec. 8. Section 423F.2, subsection 3, Code 2018, is amended 22 to read as follows: 23 3. a. The moneys available in a fiscal year in the secure 24 an advanced vision for education fund shall be distributed by 25 the department of revenue to each school district on a per 26 pupil basis calculated using each school district’s budget 27 enrollment, as defined in section 257.6 , for that fiscal year. 28 b. (1) Prior to distribution of moneys in the secure an 29 advanced vision for education fund to school districts, two 30 and one-tenths percent of the moneys available in a an amount 31 equal to the equity transfer amount for the fiscal year minus 32 the foundation base transfer amount for the fiscal year shall 33 be distributed and credited to the property tax equity and 34 relief fund created in section 257.16A, an amount equal to 35 -3- LSB 5423HZ (3) 87 md/jh 3/ 16

H.F. 2481 the foundation base transfer amount shall be distributed and 1 credited to the foundation base percentage fund created in 2 section 257.16C, and an amount equal to the career academy 3 transfer amount for the fiscal year shall be distributed and 4 credited to the career academy fund created in section 257.51 . 5 (2) For purposes of this subsection, the equity transfer 6 amount is determined by multiplying the equity transfer 7 percentage by the amount of moneys available in the secure an 8 advanced vision for education fund in the fiscal year. 9 (a) For the fiscal year beginning July 1, 2017, the equity 10 transfer percentage is two and one-tenths percent. 11 (b) For each fiscal year beginning on or after July 1, 2018, 12 the equity transfer percentage is equal to the equity transfer 13 percentage for the immediately preceding fiscal year, unless 14 the amount of moneys available in the secure an advanced vision 15 for education fund in the fiscal year equals or exceeds one 16 hundred two percent of the amount of moneys available in the 17 fund for the immediately preceding fiscal year, in which case 18 the equity transfer percentage shall be the equity transfer 19 percentage for the immediately preceding fiscal year plus one 20 percent subject to the limitation in subparagraph division (c). 21 (c) If the equity transfer percentage calculated under 22 subparagraph division (b) exceeds twelve percent, the equity 23 transfer percentage for that fiscal year shall be twelve 24 percent. 25 (3) For purposes of this subsection, the foundation 26 base transfer amount equals the equity transfer amount for 27 the fiscal year under subparagraph (2) minus the sum of the 28 following: 29 (a) Two and one-tenths percent of the amount of the moneys 30 available in the secure an advanced vision for education fund 31 in the fiscal year. 32 (b) Two-thirds of the product of the equity transfer 33 percentage for the fiscal year minus two and one-tenths percent 34 multiplied by the moneys available in the secure an advanced 35 -4- LSB 5423HZ (3) 87 md/jh 4/ 16

H.F. 2481 vision for education fund in the fiscal year. 1 (4) (a) For purposes of this subsection, the career academy 2 transfer amount for the fiscal year beginning July 1, 2018, is 3 one million dollars. 4 (b) For each fiscal year beginning on or after July 1, 5 2019, the career academy transfer amount is equal to the lesser 6 of five million dollars or the amount of the career academy 7 transfer amount for the immediately preceding fiscal year, 8 unless the amount of moneys available in the secure an advanced 9 vision for education fund in the fiscal year equals or exceeds 10 one hundred two and one-half percent of the amount of moneys 11 available in the fund for the immediately preceding fiscal 12 year, in which case the career academy transfer amount equals 13 the lesser of five million dollars or the sum of the amount 14 of the career academy transfer amount for the immediately 15 preceding fiscal year plus one-half percent of the amount of 16 moneys available in the secure an advanced vision for education 17 fund in the fiscal year following the deposit of revenues in 18 the property tax equity and relief fund and the foundation base 19 percentage fund. 20 Sec. 9. Section 423F.3, subsection 3, paragraph b, Code 21 2018, is amended to read as follows: 22 b. (1) If the board of directors intends to use funds for 23 purposes other than those listed in paragraph “a” , or change the 24 use of funds to purposes other than those listed in paragraph 25 “a” , the board shall adopt a revenue purpose statement or amend 26 an existing revenue purpose statement , subject to approval of 27 the electors, listing the proposed use of the funds. School 28 districts shall submit the statement to the voters no later 29 than sixty days prior to the expiration of any existing revenue 30 purpose statement or change in use not included in the existing 31 revenue purpose statement. 32 (2) (a) Notwithstanding any provision of law to the 33 contrary, for each school district with an existing revenue 34 purpose statement for the use of revenues from the secure an 35 -5- LSB 5423HZ (3) 87 md/jh 5/ 16

H.F. 2481 advanced vision for education fund adopted under this paragraph 1 or adopted under another provision of law before July 1, 2 2018, such revenue purpose statement shall terminate and be 3 of no further force and effect on January 1, 2030, or the 4 expiration date of the revenue purpose statement, whichever is 5 earlier. If such a school district intends to use funds for 6 purposes other than those listed in paragraph “a” and does not 7 intend to operate without a revenue purpose statement on or 8 after January 1, 2030, or the expiration date of the revenue 9 purpose statement, whichever is earlier, the board of directors 10 shall submit a revenue purpose statement for approval by the 11 electors under subparagraph (1) on or after July 1, 2018, 12 and such revenue purpose statement submitted to the electors 13 shall include all proposed uses including those previously 14 approved by the electors, if applicable. The following, in 15 substantially the following form, shall be included in the 16 notice of the election published under paragraph “d” and 17 published on the school district’s internet site: 18 If a majority of eligible electors voting on the question 19 fail to approve this revenue purpose statement, revenues 20 received by the school district from the secure an advanced 21 vision for education fund shall first be expended for . . . . 22 (State the purposes in the order listed in subsection 1 and as 23 required by subsection 4 of this section for which the revenues 24 received by the school district under this chapter will be 25 expended.) 26 (b) Unless a new revenue purpose statement is adopted by 27 the electors, the existing revenue purpose statement remains 28 in effect until January 1, 2030, or the expiration date of the 29 revenue purpose statement, whichever is earlier. If a revenue 30 purpose statement is terminated under the provisions of this 31 subparagraph, such termination shall not affect the validity 32 of or a first lien on bonds issued under section 423E.5, Code 33 2018, or section 423F.5 prior to the date the revenue purpose 34 statement is terminated under subparagraph division (a), or 35 -6- LSB 5423HZ (3) 87 md/jh 6/ 16

H.F. 2481 the validity of a contract or other obligation of the school 1 district secured in whole or in part by or requiring the 2 payment of funds received under this chapter in effect prior 3 to the date the revenue purpose statement is terminated under 4 subparagraph division (a). 5 Sec. 10. Section 423F.3, subsection 5, paragraph b, Code 6 2018, is amended to read as follows: 7 b. The infeasibility cost-benefit analysis of remodeling, 8 reconstructing, or repairing existing buildings. 9 Sec. 11. Section 423F.3, subsection 5, Code 2018, is amended 10 by adding the following new paragraph: 11 NEW PARAGRAPH . i. Benefits and effects of the new 12 construction on student learning. 13 Sec. 12. Section 423F.3, Code 2018, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 6A. a. Prior to approving the use 16 of revenues received under this chapter for an athletic 17 facility infrastructure project within the scope of the 18 school district’s approved revenue purpose statement or 19 pursuant to subsection 4 for a school district without an 20 approved revenue statement, the board of directors shall adopt 21 a resolution setting forth the proposal for the athletic 22 facility infrastructure project and hold an additional public 23 hearing on the issue of construction of the athletic facility. 24 Notice of the time and place of the public hearing shall be 25 published not less than ten nor more than twenty days before 26 the public hearing in a newspaper which is a newspaper of 27 general circulation in the school district. If at any time 28 prior to the fifteenth 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 31 of the approval of the use of revenues for the athletic 32 facility infrastructure project be submitted to the voters 33 of the school district, the board of directors shall either 34 rescind the board’s resolution for the use of revenues for 35 -7- LSB 5423HZ (3) 87 md/jh 7/ 16

H.F. 2481 the athletic facility infrastructure project or direct the 1 county commissioner of elections to submit the question to the 2 registered voters of the school district at an election held 3 on a date specified in section 39.2, subsection 4, paragraph 4 “c” . The petition must be signed by eligible electors equal 5 in number to not less than one hundred or thirty percent of 6 the number of voters at the last preceding election of school 7 officials under section 277.1, whichever is greater. If a 8 majority of those voting on the question favors the use of the 9 revenues for the athletic facility infrastructure project, the 10 board shall be authorized to approve such use by resolution of 11 the board. If a majority of those voting on the question does 12 not favor the use of the revenues for the athletic facility 13 infrastructure project, the board of directors shall rescind 14 the board’s resolution for the use of revenues for the athletic 15 facility infrastructure project. If a petition is not received 16 by the board of directors within the prescribed time period, 17 the board of directors may approve the use of revenues for 18 the athletic facility infrastructure project without voter 19 approval. 20 b. After fourteen days from the date of the hearing under 21 paragraph “a” or fourteen days after the date of the election 22 held under paragraph “a” , if applicable, whichever is later, an 23 action shall not be brought questioning the board of directors’ 24 authority to use funds for the athletic facility infrastructure 25 project or questioning the legality of any proceedings in 26 connection with the authorization of such use. 27 c. For purposes of this subsection: 28 (1) “Athletic facility” means a building or structure, or 29 portion thereof, that is not physically attached to a student 30 attendance center. 31 (2) “Athletic facility infrastructure project” means a school 32 infrastructure project that includes in whole or in part the 33 construction of an athletic facility. 34 (3) “Construction” does not include repair or maintenance 35 -8- LSB 5423HZ (3) 87 md/jh 8/ 16

H.F. 2481 of an existing facility. 1 Sec. 13. Section 423F.4, Code 2018, is amended to read as 2 follows: 3 423F.4 Borrowing authority for school districts. 4 1. A Subject to the conditions established under subsection 5 2, a school district may anticipate its share of the revenues 6 under section 423F.2 by issuing bonds in the manner provided in 7 section 423E.5 , Code 2018 . However, to the extent any school 8 district has issued bonds anticipating the proceeds of an 9 extended local sales and services tax for school infrastructure 10 purposes imposed by a county pursuant to former chapter 423E, 11 Code and Code Supplement 2007, prior to July 1, 2008, the 12 pledge of such revenues for the payment of principal and 13 interest on such bonds shall be replaced by a pledge of its 14 share of the revenues under section 423F.2 . 15 2. a. Bonds issued on or after July 1, 2018, shall not be 16 sold at public sale as provided in chapter 75, or at a private 17 sale, without notice and hearing. Notice of the time and place 18 of the public hearing shall be published not less than ten nor 19 more than twenty days before the public hearing in a newspaper 20 which is a newspaper of general circulation in the school 21 district. 22 b. For bonds subject to the requirements of paragraph 23 “a” , if at any time prior to the fifteenth day following the 24 hearing, the secretary of the board of directors receives a 25 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 board shall 28 either rescind its adoption of the resolution or direct the 29 county commissioner of elections to submit the question to the 30 registered voters of the school district at an election held 31 on a date specified in section 39.2, subsection 4, paragraph 32 “c” . The petition must be signed by eligible electors equal 33 in number to not less than one hundred or thirty percent of 34 the number of voters at the last preceding election of school 35 -9- LSB 5423HZ (3) 87 md/jh 9/ 16

H.F. 2481 officials under section 277.1, whichever is greater. If the 1 board submits the question at an election and a majority of 2 those voting on the question favors issuance of the bonds, the 3 board shall be authorized to issue the bonds. 4 c. After fourteen days from the date of the hearing under 5 paragraph “a” or fourteen days after the date of the election 6 held under paragraph “b” , if applicable, whichever is later, 7 an action shall not be brought questioning the legality of 8 any bonds or the power of the authority to issue any bonds 9 or to the legality of any proceedings in connection with the 10 authorization or issuance of the bonds. 11 Sec. 14. Section 423F.6, Code 2018, is amended to read as 12 follows: 13 423F.6 Repeal. 14 This chapter is repealed December 31, 2029 January 1, 2050 . 15 Sec. 15. STATE MANDATE FUNDING SPECIFIED. In accordance 16 with section 25B.2, subsection 3, the state cost of requiring 17 compliance with any state mandate included in this Act shall 18 be paid by a school district from state school foundation aid 19 received by the school district under section 257.16. This 20 specification of the payment of the state cost shall be deemed 21 to meet all of the state funding-related requirements of 22 section 25B.2, subsection 3, and no additional state funding 23 shall be necessary for the full implementation of this Act 24 by and enforcement of this Act against all affected school 25 districts. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 Code section 423.2 imposes a state tax of 6 percent upon 30 the sales price of all sales of tangible personal property, 31 consisting of goods, wares, merchandise, and other items 32 designated by statute, sold at retail in the state to consumers 33 or users, except as otherwise provided by Code chapter 423. 34 Generally, by operation of law, a sale subject to the sales 35 -10- LSB 5423HZ (3) 87 md/jh 10/ 16

H.F. 2481 tax is also subject to the use tax. Following the transfer 1 of amounts required by statute, if applicable, one-sixth of 2 the remaining state sales tax revenue from the 6 percent tax 3 is transferred to the secure an advanced vision for education 4 (SAVE) fund created in Code section 423F.2. Moneys in the SAVE 5 fund are allocated to school districts on a per pupil basis to 6 be used for infrastructure and property tax reduction purposes 7 specified in Code chapter 423F. Under current law, the sales 8 tax rate of 6 percent is reduced to 5 percent on January 1, 9 2030, and Code chapter 423F, along with other corresponding 10 provisions, is repealed December 31, 2029. 11 This bill extends the 6 percent sales tax rate, the 12 allocation to the SAVE fund, and the statutory repeal of Code 13 chapter 423F until January 1, 2050. 14 Code section 423F.2 provides that prior to distribution of 15 SAVE revenues to school districts, 2.1 percent of the moneys 16 available in the SAVE fund are distributed and credited to 17 the property tax equity and relief (PTER) fund to be used for 18 additional property tax levy aid. The bill provides that for 19 each fiscal year beginning on or after July 1, 2018, the equity 20 transfer amount, as created in the bill, is distributed and 21 credited to the PTER fund and foundation base percentage fund 22 in amounts specified in the bill. The bill creates the equity 23 transfer percentage, which is used to determine the amount of 24 the equity transfer amount, and is equal to the equity transfer 25 percentage for the immediately preceding fiscal year, unless 26 the amount of money available in the SAVE fund in the fiscal 27 year is equal to or exceeds 102 percent of the amount of money 28 available in the SAVE fund for the immediately preceding fiscal 29 year, in which case the equity transfer percentage shall be the 30 equity transfer percentage for the immediately preceding fiscal 31 year plus 1 percent. However, the bill caps the percentage at 32 12 percent. The equity transfer percentage for the fiscal year 33 beginning July 1, 2017, is 2.1 percent. The amount required to 34 be transferred from the SAVE fund to the PTER fund is equal to 35 -11- LSB 5423HZ (3) 87 md/jh 11/ 16

H.F. 2481 the equity transfer amount minus the foundation base transfer 1 amount. 2 The bill also establishes a foundation base transfer amount 3 that equals the equity transfer amount minus the sum of 2.1 4 percent of the amount of the moneys available in the SAVE fund 5 in the fiscal year plus two-thirds of the product of the equity 6 transfer percentage minus 2.1 percent multiplied by the moneys 7 available in the SAVE fund in the fiscal year. An amount equal 8 to the foundation base transfer amount is credited to the 9 foundation base percentage fund to be used by the department of 10 management for purposes of further lowering additional property 11 taxes by increasing for the budget year the regular program 12 foundation base per pupil percentage, but not to exceed 100 13 percent. An increase in the regular program foundation base 14 per pupil percentage for a budget year shall not apply to any 15 future budget year. 16 The bill establishes a career academy transfer amount that 17 for the fiscal year beginning July 1, 2018, is $1 million. For 18 each fiscal year beginning on or after July 1, 2019, the career 19 academy transfer amount is equal to the lesser of $5 million 20 or the amount of the career academy transfer amount for the 21 immediately preceding fiscal year, unless the amount of moneys 22 available in the SAVE fund in the fiscal year equals or exceeds 23 102.5 percent of the amount of moneys available in the fund for 24 the immediately preceding fiscal year, in which case the career 25 academy transfer amount equals the lesser of $5 million or the 26 sum of the amount of the career academy transfer amount for 27 the immediately preceding fiscal year plus 0.5 percent of the 28 amount of moneys available in the SAVE fund in the fiscal year 29 following the deposit of revenues in the property tax equity 30 and relief fund and the foundation base percentage fund. 31 An amount equal to the career academy transfer amount 32 is credited to the career academy fund to be used by the 33 department of education for purposes of providing competitive 34 grants, not to exceed $1 million per grant, to school districts 35 -12- LSB 5423HZ (3) 87 md/jh 12/ 16

H.F. 2481 for career academy infrastructure, career academy equipment, or 1 both, in accordance with the bill and to further the goals of 2 the establishment and operation of career academies under Code 3 section 258.15. 4 Under the bill, existing revenue purpose statements for the 5 use of SAVE fund revenues adopted before July 1, 2018, shall 6 terminate and be of no further force and effect on January 1, 7 2030, or the expiration date of the revenue purpose statement, 8 whichever is earlier. If a school district intends to use 9 SAVE fund revenues for purposes other than those which can 10 be approved by the school board alone and does not intend to 11 operate without a revenue purpose statement on or after January 12 1, 2030, or the expiration of the revenue purpose statement, 13 whichever is earlier, the school board must submit a revenue 14 purpose statement for approval by the electors on or after 15 July 1, 2018, and such revenue purpose statement submitted to 16 the electors shall include all proposed uses including those 17 previously approved by the electors, if applicable. The bill 18 specifies that if a revenue purpose statement is terminated 19 under the provisions of the bill, such termination shall 20 not affect the validity of or a first lien on bonds issued 21 under Code sections 423E.5 and 423F.5 prior to the date of 22 termination, or the validity of a contract or other obligation 23 of the school district secured in whole or in part by or 24 requiring the payment of SAVE revenues in effect prior to the 25 date of termination. 26 The bill provides that prior to approving the use of SAVE 27 revenues for an athletic facility infrastructure project 28 that is defined in the bill to mean a school infrastructure 29 project that includes in whole or in part, the construction 30 of an athletic facility, the board of directors must first 31 hold an additional public hearing on the issue of the athletic 32 facility. The bill defines “athletic facility” to mean 33 a building or structure, or portion thereof, that is not 34 physically attached to a student attendance center. If at any 35 -13- LSB 5423HZ (3) 87 md/jh 13/ 16

H.F. 2481 time prior to the 15th 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 of 3 the approval of the use of revenues for the athletic facility 4 infrastructure project be submitted to the voters of the school 5 district, the board of directors shall either rescind the 6 resolution for use of SAVE revenues for the athletic facility 7 infrastructure project or direct the county commissioner of 8 elections to submit the question to the registered voters of 9 the school district. If a majority of those voting on the 10 question favors the use of the SAVE revenues for the athletic 11 facility infrastructure project, the board shall be authorized 12 to approve such use by resolution of the board. If a majority 13 of those voting on the question does not favor the use of the 14 SAVE revenues for the school infrastructure project, the board 15 of directors shall rescind the board’s resolution for use of 16 SAVE revenues for the athletic facility infrastructure project. 17 If a petition is not received by the board of directors 18 within the prescribed time period, the board of directors may 19 approve the use of SAVE revenues for the athletic facility 20 infrastructure project without voter approval. The bill also 21 establishes limitations on the period of time to bring an 22 action to question the authority to use funds for such purpose 23 or the legality of any proceedings in connection with the 24 authorization of such use. 25 Current law authorizes a school district to anticipate 26 its share of SAVE fund revenues by issuing bonds without 27 voter approval. The bill provides that revenue bonds issued 28 on or after July 1, 2018, shall not be sold at public sale 29 or at a private sale without notice and a public hearing. 30 Additionally, if at any time prior to the 15th day following 31 the hearing, the secretary of the board of directors receives 32 a petition containing the required number of signatures and 33 asking that the question of the issuance of such bonds be 34 submitted to the voters of the school district, the school 35 -14- LSB 5423HZ (3) 87 md/jh 14/ 16

H.F. 2481 board shall either rescind its adoption of the resolution or 1 direct the county commissioner of elections to submit the 2 question to the registered voters of the school district. The 3 petition must be signed by eligible electors equal in number 4 to not less than 100 or 30 percent of the number of voters at 5 the last preceding election of school officials, whichever 6 is greater. If the school 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. The bill also places limitations on the period 10 of time during which an action questioning the legality or 11 procedural compliance for the issuance of such bonds may be 12 brought. 13 Currently, a school district with a certified enrollment 14 of fewer than 250 pupils in the entire district or certified 15 enrollment of fewer than 100 pupils in high school must apply 16 to the department of education for a certificate of need 17 before the school district can expend the supplemental school 18 infrastructure amount received for new construction or for 19 payments for bonds issued for new construction against the 20 supplemental school infrastructure amount. The bill modifies 21 the criteria to be used by the department of education in 22 determining whether to issue a certificate of need to include 23 the cost-benefit analysis of remodeling, reconstructing, or 24 repairing existing buildings versus new construction and 25 consideration of the benefit of the new construction on student 26 learning. 27 The bill may include a state mandate as defined in Code 28 section 25B.3. The bill requires that the state cost of 29 any state mandate included in the bill be paid by a school 30 district from state school foundation aid received by the 31 school district under Code section 257.16. The specification 32 is deemed to constitute state compliance with any state mandate 33 funding-related requirements of Code section 25B.2. The 34 inclusion of this specification is intended to reinstate the 35 -15- LSB 5423HZ (3) 87 md/jh 15/ 16