Senate
File
2393
-
Introduced
SENATE
FILE
2393
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
2216)
A
BILL
FOR
An
Act
relating
to
the
collection
of
sales
tax
for
deposit
in
1
the
secure
an
advanced
vision
for
education
fund
and
to
the
2
use
of
tax
revenue
from
the
secure
an
advanced
vision
for
3
education
fund.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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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repealed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repealed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
.
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(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
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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
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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
.
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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
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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.
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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
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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
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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.
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