S.F. 2216 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 This subparagraph (3) is repealed December 31, 2029 5 January 1, 2050 . 6 Sec. 2.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 This paragraph is 21 repealed December 31, 2029 January 1, 2050 . 22 Sec. 5.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 5167XS (4) 87 md/jh 1/ 9

S.F. 2216 (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 1, paragraph d, Code 20 2018, is amended to read as follows: 21 d. For any authorized infrastructure purpose of the school 22 district as defined in subsection 6 , excluding the construction 23 or purchase of an extracurricular athletic facility . 24 Sec. 7. Section 423F.3, subsection 3, paragraph b, Code 25 2018, is amended to read as follows: 26 b. (1) If the board of directors intends to use funds 27 for purposes other than those listed in paragraph “a” , or 28 change the use of funds to purposes other than those listed 29 in paragraph “a” , the board shall adopt a revenue purpose 30 statement or amend an existing revenue purpose statement , 31 subject to approval of the electors, listing the proposed use 32 of the funds. School districts shall submit the statement to 33 the voters no later than sixty days prior to the expiration of 34 any existing revenue purpose statement or change in use not 35 -2- LSB 5167XS (4) 87 md/jh 2/ 9

S.F. 2216 included in the existing revenue purpose statement. If the 1 board of directors intends to use funds for the construction 2 or purchase of an extracurricular athletic facility that is 3 approved by the board on or after July 1, 2018, such use 4 must first be specifically included in the school district’s 5 revenue purpose statement, subject to approval of the electors. 6 For purposes of this subparagraph, “extracurricular athletic 7 facility” means a building or structure, or portion thereof, 8 that is not physically attached to a student attendance 9 center and that is primarily used for extracurricular athletic 10 activities or nonschool sponsored activities. For purposes of 11 this subparagraph, “construction” does not include repair or 12 maintenance of an existing facility. 13 (2) Notwithstanding any provision of law to the contrary, 14 for each school district with an existing revenue purpose 15 statement for the use of revenues from the secure an advanced 16 vision for education fund adopted under this paragraph or 17 adopted under another provision of law before July 1, 2018, 18 such revenue purpose statement shall terminate and be of no 19 further force and effect on January 1, 2023. If such a school 20 district intends to use funds for purposes other than those 21 listed in paragraph “a” and does not intend to operate without 22 a revenue purpose statement on or after January 1, 2023, the 23 board of directors shall submit a revenue purpose statement for 24 approval by the electors under subparagraph (1) on or after 25 July 1, 2018, and such revenue purpose statement submitted to 26 the electors shall include all proposed uses including those 27 previously approved by the electors, if applicable. If a 28 revenue purpose statement is terminated under the provisions 29 of this subparagraph, such termination shall not affect the 30 validity of or a first lien on bonds issued under section 31 423E.5, Code 2018, or section 423F.5 prior to January 1, 2023. 32 Sec. 8. Section 423F.3, subsection 5, unnumbered paragraph 33 1, Code 2018, is amended to read as follows: 34 A school district with a certified enrollment of fewer 35 -3- LSB 5167XS (4) 87 md/jh 3/ 9

S.F. 2216 than two three hundred fifty pupils in the entire district or 1 certified enrollment of fewer than one hundred forty pupils 2 in high school shall not expend the amount received for new 3 construction without prior application to the department of 4 education and receipt of a certificate of need pursuant to 5 this subsection . A certificate of need is not required for 6 repairing schoolhouses or buildings, equipment, technology, or 7 transportation equipment for transporting students as provided 8 in section 298.3 , or for construction necessary for compliance 9 with the federal Americans With Disabilities Act pursuant to 42 10 U.S.C. §12101 – 12117. In determining whether a certificate of 11 need shall be issued or denied, the department shall consider 12 all of the following: 13 Sec. 9. Section 423F.3, subsection 5, paragraph b, Code 14 2018, is amended to read as follows: 15 b. The infeasibility cost-benefit analysis of remodeling, 16 reconstructing, or repairing existing buildings. 17 Sec. 10. Section 423F.3, subsection 5, Code 2018, is amended 18 by adding the following new paragraph: 19 NEW PARAGRAPH . i. Benefits and effects of the new 20 construction on student learning. 21 Sec. 11. Section 423F.4, Code 2018, is amended to read as 22 follows: 23 423F.4 Borrowing authority for school districts. 24 1. A Subject to the conditions established under subsection 25 2, a school district may anticipate its share of the revenues 26 under section 423F.2 by issuing bonds in the manner provided in 27 section 423E.5 , Code 2018 . However, to the extent any school 28 district has issued bonds anticipating the proceeds of an 29 extended local sales and services tax for school infrastructure 30 purposes imposed by a county pursuant to former chapter 423E, 31 Code and Code Supplement 2007, prior to July 1, 2008, the 32 pledge of such revenues for the payment of principal and 33 interest on such bonds shall be replaced by a pledge of its 34 share of the revenues under section 423F.2 . 35 -4- LSB 5167XS (4) 87 md/jh 4/ 9

S.F. 2216 2. a. Bonds issued on or after July 1, 2018, shall not 1 be sold at public sale as provided in chapter 75, or at a 2 private sale, without notice and hearing as provided in section 3 73A.12 as if the school district were a municipality within the 4 meaning of chapter 73A. 5 b. For bonds subject to the requirements of paragraph 6 “a” , if at any time prior to the fifteenth day following the 7 hearing, the secretary of the board of directors receives a 8 petition containing the required number of signatures and 9 asking that the question of the issuance of such bonds be 10 submitted to the voters of the school district, the board shall 11 either rescind its adoption of the resolution or direct the 12 county commissioner of elections to submit the question to the 13 registered voters of the school district at an election held 14 on a date specified in section 39.2, subsection 4, paragraph 15 “c” . The petition must be signed by eligible electors equal in 16 number to not less than one hundred or thirty percent of the 17 number of voters at the last preceding regular school election, 18 whichever is greater. If the board submits the question at an 19 election and a majority of those voting on the question favors 20 issuance of the bonds, the board shall be authorized to issue 21 the bonds. 22 c. After fourteen days from the date of the hearing under 23 paragraph “a” or fourteen days after the date of the election 24 held under paragraph “b” , if applicable, whichever is later, 25 an action shall not be brought questioning the legality of 26 any bonds or the power of the authority to issue any bonds 27 or to the legality of any proceedings in connection with the 28 authorization or issuance of the bonds. 29 Sec. 12. Section 423F.6, Code 2018, is amended to read as 30 follows: 31 423F.6 Repeal. 32 This chapter is repealed December 31, 2029 January 1, 2050 . 33 Sec. 13. STATE MANDATE FUNDING SPECIFIED. In accordance 34 with section 25B.2, subsection 3, the state cost of requiring 35 -5- LSB 5167XS (4) 87 md/jh 5/ 9

S.F. 2216 compliance with any state mandate included in this Act shall 1 be paid by a school district from state school foundation aid 2 received by the school district under section 257.16. This 3 specification of the payment of the state cost shall be deemed 4 to meet all of the state funding-related requirements of 5 section 25B.2, subsection 3, and no additional state funding 6 shall be necessary for the full implementation of this Act 7 by and enforcement of this Act against all affected school 8 districts. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 Code section 423.2 imposes a state tax of 6 percent upon 13 the sales price of all sales of tangible personal property, 14 consisting of goods, wares, merchandise, and other items 15 designated by statute, sold at retail in the state to consumers 16 or users, except as otherwise provided by Code chapter 423. 17 Generally, by operation of law, a sale subject to the sales 18 tax is also subject to the use tax. Following the transfer 19 of amounts required by statute, if applicable, one-sixth of 20 the remaining state sales tax revenue from the 6 percent tax 21 is transferred to the secure an advanced vision for education 22 (SAVE) fund created in Code section 423F.2. Moneys in the SAVE 23 fund are allocated to school districts on a per pupil basis to 24 be used for infrastructure and property tax reduction purposes 25 specified in Code chapter 423F. Under current law, the sales 26 tax rate of 6 percent is reduced to 5 percent on January 1, 27 2030, and Code chapter 423F, along with other corresponding 28 provisions, is repealed December 31, 2029. 29 This bill extends the 6 percent sales tax rate, the 30 allocation to the SAVE fund, and the statutory repeal of Code 31 chapter 423F until January 1, 2050. 32 Current law requires that one-sixth of the revenue from the 33 6 percent statewide sales tax be deposited in the SAVE fund 34 for distribution to school districts on a per pupil basis. 35 -6- LSB 5167XS (4) 87 md/jh 6/ 9

S.F. 2216 Code section 423F.2 provides that prior to such distribution, 1 2.1 percent of the moneys available in the SAVE fund are 2 distributed and credited to the property tax equity and relief 3 (PTER) fund to be used for additional property tax levy aid. 4 The bill provides that for each fiscal year beginning on or 5 after July 1, 2018, the percentage used to determine the 6 amount of the transfer from the SAVE fund to the PTER fund is 7 equal to the percentage for the immediately preceding fiscal 8 year, unless the amount of money available in the SAVE fund 9 in the fiscal year is equal to or exceeds 102 percent of the 10 amount of money available in the SAVE fund for the immediately 11 preceding fiscal year, in which case the percentage shall be 12 the percentage for the immediately preceding fiscal year plus 1 13 percent. However, the bill caps the percentage at 10 percent. 14 Code section 423F.3(1) generally describes the uses for 15 which a school district may use revenues from the SAVE fund 16 if the school district does not have a valid revenue purpose 17 statement. The bill excludes the construction or purchase of 18 an extracurricular athletic facility, as defined in the bill, 19 approved by the school board on or after July 1, 2018, from 20 that list of authorized uses. The bill also provides that if 21 a school board intends to use SAVE funds for the construction 22 or purchase of an extracurricular athletic facility that is 23 approved by the board on or after July 1, 2018, such use must 24 first be specifically included in the school district’s revenue 25 purpose statement, subject to approval of the electors. 26 Under the bill, revenue purpose statements for the use of 27 SAVE fund revenues adopted before July 1, 2018, shall terminate 28 and be of no further force and effect on January 1, 2023. 29 If a school district intends to use SAVE fund revenues for 30 purposes other than those which can be approved by the school 31 board alone and does not intend to operate without a revenue 32 purpose statement on or after January 1, 2023, the school 33 board must submit a revenue purpose statement for approval 34 by the electors on or after July 1, 2018, and such revenue 35 -7- LSB 5167XS (4) 87 md/jh 7/ 9

S.F. 2216 purpose statement submitted to the electors shall include 1 all proposed uses including those previously approved by the 2 electors, if applicable. The bill specifies that if a revenue 3 purpose statement is terminated on January 1, 2023, under the 4 provisions of the bill, such termination shall not affect the 5 validity of or a first lien on bonds issued under Code sections 6 423E.5 and 423F.5 prior to January 1, 2023. 7 Current law authorizes a school district to anticipate 8 its share of SAVE fund revenues by issuing bonds without 9 voter approval. The bill provides that revenue bonds issued 10 on or after July 1, 2018, shall not be sold at public sale 11 or at a private sale without notice and a public hearing. 12 Additionally, if at any time prior to the 15th day following 13 the hearing, the secretary of the board of directors receives 14 a petition containing the required number of signatures and 15 asking that the question of the issuance of such bonds be 16 submitted to the voters of the school district, the school 17 board shall either rescind its adoption of the resolution or 18 direct the county commissioner of elections to submit the 19 question to the registered voters of the school district. The 20 petition must be signed by eligible electors equal in number to 21 not less than 100 or 30 percent of the number of voters at the 22 last preceding regular school election, whichever is greater. 23 If the school board submits the question at an election and a 24 majority of those voting on the question favors issuance of the 25 bonds, the board shall be authorized to issue the bonds. The 26 bill also places limitations on the period of time during which 27 an action questioning the legality or procedural compliance for 28 the issuance of such bonds may be brought. 29 Currently, a school district with a certified enrollment 30 of fewer than 250 pupils in the entire district or certified 31 enrollment of fewer than 100 pupils in high school must apply 32 to the department of education for a certificate of need 33 before the school district can expend the supplemental school 34 infrastructure amount received for new construction or for 35 -8- LSB 5167XS (4) 87 md/jh 8/ 9

S.F. 2216 payments for bonds issued for new construction against the 1 supplemental school infrastructure amount. The bill increases 2 the enrollment thresholds to a total enrollment of 350 pupils 3 and to a high school enrollment of 140 pupils. 4 The bill also modifies the criteria to be used by the 5 department of education in determining whether to issue a 6 certificate of need to include the cost-benefit analysis of 7 remodeling, reconstructing, or repairing existing buildings 8 versus new construction and consideration of the benefit of the 9 new construction on student learning. 10 The bill may include a state mandate as defined in Code 11 section 25B.3. The bill requires that the state cost of 12 any state mandate included in the bill be paid by a school 13 district from state school foundation aid received by the 14 school district under section 257.16. The specification is 15 deemed to constitute state compliance with any state mandate 16 funding-related requirements of Code section 25B.2. The 17 inclusion of this specification is intended to reinstate the 18 requirement of political subdivisions to comply with any state 19 mandates included in the bill. 20 -9- LSB 5167XS (4) 87 md/jh 9/ 9