HF 216 (LSB 2196YH (2) 89)

HOUSE FILE 216

BY  FISHER

A BILL FOR

An Act creating a vacant school building demolition grant program and fund and making appropriations. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  15.263  Vacant school building demolition grant program —— fund.
   1.  A vacant school building demolition grant fund is created in the state treasury under the control of the authority. The fund shall consist of moneys transferred to the authority for deposit in the fund under section 423F.2, subsection 3, paragraph “a”, subparagraph (2), and any other moneys that are lawfully available to the authority.
   2.  Moneys in the vacant school building demolition grant fund are appropriated to the authority for purposes of funding a grant program for the demolition of buildings owned by a political subdivision of this state or proposed to be acquired by a political subdivision of this state that became vacant before January 1, 2021, and were at any time previously used as school attendance centers or school administration buildings, but which are no longer used for any political subdivision purpose. The authority shall administer the fund in a manner designed to make grants annually available to political subdivisions for purposes of this section.
   3.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the vacant school building demolition grant fund shall be credited to the vacant school building demolition grant fund. Notwithstanding section 8.33, moneys credited to the vacant school building demolition grant fund shall not revert at the close of a fiscal year. However, if the authority receives no qualifying applications for three consecutive years, the moneys in the vacant school building demolition grant fund shall be transferred to the department of revenue for deposit in the secure an advanced vision for education fund for distribution to school districts under section 423F.2, subsection 3, paragraph “a”, subparagraph (1), and no further transfers to the vacant school building demolition grant fund under section 423F.2, subsection 3, paragraph “a”, subparagraph (2), shall occur in any future fiscal year.
   4.  The authority may use not more than five percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, finance, compliance, marketing, and program support.
   5.  a.  The authority may provide grants under this section using a competitive scoring process. The authority shall prioritize grant applications from political subdivisions with the lowest populations as compared to other grant applicants.
   b.  In providing grants under this section, the authority shall coordinate with the political subdivision to develop a plan for the use of grant funds that is consistent with the community development, housing, or economic development goals of the political subdivision.
   c.  In providing grants under this section, the authority shall coordinate with the political subdivision to ensure that the condition and use of the property following demolition is consistent with the property’s surroundings, including for future new construction, park space, or agricultural use.
   d.  The political subdivision shall not be required to sell the property after demolition as a condition of the grant. However, if the property is sold by the political subdivision following demolition, proceeds from sale of the property shall, following subtraction of the political subdivision’s costs related to the demolition, including costs to acquire the property if applicable, shall be paid to the authority for deposit in the vacant school building demolition grant fund.
   6.  The authority shall submit a report to the general assembly and the governor’s office on or before January 31 of each year, describing the results of the program implemented pursuant to this section and making recommendations for additional program changes.
    Sec. 2.  Section 423F.2, subsection 3, paragraph a, Code 2021, is amended to read as follows:
   a.  (1)  The moneys available in a fiscal year in the secure an advanced vision for education fund shall be distributed by the department of revenue to each school district on a per pupil basis calculated using each school district’s budget enrollment, as defined in section 257.6, for that fiscal year.
   (2)  For the fiscal year beginning July 1, 2021, and each fiscal year thereafter until transfers end as required by section 15.263, subsection 3, of the amount remaining after transfers required under paragraph “b”, but prior to distribution of the moneys to school districts on a per pupil basis under subparagraph (1), an amount equal to twenty percent of the difference between the amount of moneys available in the secure an advanced vision for education fund in the immediately preceding fiscal year and the amount of moneys available in the fund for the fiscal year prior to the immediately preceding fiscal year, shall be transferred by the department of revenue to the economic development authority for deposit in the vacant school building demolition grant fund under section 15.263.
    Sec. 3.  Section 423F.2, subsection 3, paragraph b, subparagraph (1), Code 2021, is amended to read as follows:
   (1)  Prior to distribution of moneys in the secure an advanced vision for education fund under paragraph “a” to school districts and to the vacant school building demolition grant program, an amount equal to the equity transfer amount for the fiscal year minus the foundation base transfer amount for the fiscal year shall be distributed and credited to the property tax equity and relief fund created in section 257.16A, an amount equal to the foundation base transfer amount shall be distributed and credited to the foundation base supplement fund created in section 257.16D, and an amount equal to the career academy transfer amount for the fiscal year shall be distributed and credited to the career academy fund created in section 257.51.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a vacant school building demolition grant program to be administered by the economic development authority for the demolition of buildings owned by a political subdivision of this state or proposed to be acquired by a political subdivision of this state that became vacant before January 1, 2021, and were at any time previously used as school attendance centers or school administration buildings, but which are no longer used for any political subdivision purpose.
   The bill creates a vacant school building demolition grant fund in the state treasury under the control of the authority. The fund shall consist of specified amounts of moneys transferred to the authority from the secure an advanced vision for education (SAVE) fund and any other moneys that are lawfully available to the authority. For the fiscal year beginning July 1, 2021, and each fiscal year thereafter until transfers end as required under the bill, and following other transfers required by law, the bill transfers from the SAVE fund an amount equal to 20 percent of the difference between the amount of moneys available in the SAVE fund in the immediately preceding fiscal year and the amount of moneys available in the SAVE fund for the fiscal year prior to the immediately preceding fiscal year, to the economic development authority for deposit in the vacant school building demolition grant fund. Interest or earnings on moneys deposited in the vacant school building demolition grant fund shall be credited to the vacant school building demolition grant fund and moneys credited to the vacant school building demolition grant fund shall not revert at the close of a fiscal year. If, however, the authority receives no qualifying applications for three consecutive years, the moneys in the vacant school building demolition grant fund shall be transferred to the department of revenue for deposit in the secure an advanced vision for education fund for distribution to school districts and no further transfers to the vacant school building demolition grant fund shall occur.
   The authority is required to prioritize grant applications from political subdivisions with the lowest populations as compared to other grant applicants. The authority is also required to coordinate with each political subdivision to develop a plan for the use of grant funds that is consistent with the community development, housing, or economic development goals of the political subdivision and to ensure that the condition and use of the property following demolition is consistent with the property’s surroundings.
   The political subdivision shall not be required to sell the property after demolition as a condition of the grant. However, if the property is sold by the political subdivision following demolition, proceeds from sale of the property shall, following subtraction of the political subdivision’s costs related to the demolition, including costs to acquire the property if applicable, shall be paid to the authority for deposit in the vacant school building demolition grant fund.
   Under the bill, the authority may use not more than 5 percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, finance, compliance, marketing, and program support.
   The authority is required to submit a report to the general assembly and the governor’s office on or before January 31 of each year, describing the results of the program implemented pursuant to this section and making recommendations for additional program changes.