S.F. _____ Section 1. NEW SECTION . 15.263 Vacant school building 1 demolition grant program —— fund. 2 1. A vacant school building demolition grant fund is created 3 in the state treasury under the control of the authority. The 4 fund shall consist of moneys transferred to the authority 5 for deposit in the fund under section 423F.2, subsection 3, 6 paragraph “a” , subparagraph (2), and any other moneys that are 7 lawfully available to the authority. 8 2. Moneys in the vacant school building demolition grant 9 fund are appropriated to the authority for purposes of funding 10 a grant program for the demolition of buildings owned by a 11 political subdivision of this state or proposed to be acquired 12 by a political subdivision of this state that became vacant 13 before January 1, 2021, and were at any time previously used as 14 school attendance centers or school administration buildings, 15 but which are no longer used for any political subdivision 16 purpose. The authority shall administer the fund in a manner 17 designed to make grants annually available to political 18 subdivisions for purposes of this section. 19 3. Notwithstanding section 12C.7, subsection 2, interest 20 or earnings on moneys deposited in the vacant school building 21 demolition grant fund shall be credited to the vacant school 22 building demolition grant fund. Notwithstanding section 8.33, 23 moneys credited to the vacant school building demolition grant 24 fund shall not revert at the close of a fiscal year. However, 25 if the authority receives no qualifying applications for three 26 consecutive years, the moneys in the vacant school building 27 demolition grant fund shall be transferred to the department 28 of revenue for deposit in the secure an advanced vision for 29 education fund for distribution to school districts under 30 section 423F.2, subsection 3, paragraph “a” , subparagraph 31 (1), and no further transfers to the vacant school building 32 demolition grant fund under section 423F.2, subsection 3, 33 paragraph “a” , subparagraph (2), shall occur in any future 34 fiscal year. 35 -1- LSB 2196XC (1) 89 md/jh 1/ 5

S.F. _____ 4. The authority may use not more than five percent of 1 the moneys in the fund at the beginning of the fiscal year 2 for purposes of administrative costs, finance, compliance, 3 marketing, and program support. 4 5. a. The authority may provide grants under this section 5 using a competitive scoring process. The authority shall 6 prioritize grant applications from political subdivisions with 7 the lowest populations as compared to other grant applicants. 8 b. In providing grants under this section, the authority 9 shall coordinate with the political subdivision to develop a 10 plan for the use of grant funds that is consistent with the 11 community development, housing, or economic development goals 12 of the political subdivision. 13 c. In providing grants under this section, the authority 14 shall coordinate with the political subdivision to ensure that 15 the condition and use of the property following demolition is 16 consistent with the property’s surroundings, including for 17 future new construction, park space, or agricultural use. 18 d. The political subdivision shall not be required to sell 19 the property after demolition as a condition of the grant. 20 However, if the property is sold by the political subdivision 21 following demolition, proceeds from sale of the property shall, 22 following subtraction of the political subdivision’s costs 23 related to the demolition, including costs to acquire the 24 property if applicable, shall be paid to the authority for 25 deposit in the vacant school building demolition grant fund. 26 6. The authority shall submit a report to the general 27 assembly and the governor’s office on or before January 31 of 28 each year, describing the results of the program implemented 29 pursuant to this section and making recommendations for 30 additional program changes. 31 Sec. 2. Section 423F.2, subsection 3, paragraph a, Code 32 2021, is amended to read as follows: 33 a. (1) The moneys available in a fiscal year in the secure 34 an advanced vision for education fund shall be distributed by 35 -2- LSB 2196XC (1) 89 md/jh 2/ 5

S.F. _____ the department of revenue to each school district on a per 1 pupil basis calculated using each school district’s budget 2 enrollment, as defined in section 257.6 , for that fiscal year. 3 (2) For the fiscal year beginning July 1, 2021, and 4 each fiscal year thereafter until transfers end as required 5 by section 15.263, subsection 3, of the amount remaining 6 after transfers required under paragraph “b” , but prior to 7 distribution of the moneys to school districts on a per pupil 8 basis under subparagraph (1), an amount equal to twenty percent 9 of the difference between the amount of moneys available in the 10 secure an advanced vision for education fund in the immediately 11 preceding fiscal year and the amount of moneys available in the 12 fund for the fiscal year prior to the immediately preceding 13 fiscal year, shall be transferred by the department of revenue 14 to the economic development authority for deposit in the vacant 15 school building demolition grant fund under section 15.263. 16 Sec. 3. Section 423F.2, subsection 3, paragraph b, 17 subparagraph (1), Code 2021, is amended to read as follows: 18 (1) Prior to distribution of moneys in the secure an 19 advanced vision for education fund under paragraph “a” to 20 school districts and to the vacant school building demolition 21 grant program , an amount equal to the equity transfer amount 22 for the fiscal year minus the foundation base transfer amount 23 for the fiscal year shall be distributed and credited to the 24 property tax equity and relief fund created in section 257.16A , 25 an amount equal to the foundation base transfer amount shall 26 be distributed and credited to the foundation base supplement 27 fund created in section 257.16D , and an amount equal to the 28 career academy transfer amount for the fiscal year shall be 29 distributed and credited to the career academy fund created in 30 section 257.51 . 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill creates a vacant school building demolition 35 -3- LSB 2196XC (1) 89 md/jh 3/ 5

S.F. _____ grant program to be administered by the economic development 1 authority for the demolition of buildings owned by a political 2 subdivision of this state or proposed to be acquired by a 3 political subdivision of this state that became vacant before 4 January 1, 2021, and were at any time previously used as school 5 attendance centers or school administration buildings, but 6 which are no longer used for any political subdivision purpose. 7 The bill creates a vacant school building demolition 8 grant fund in the state treasury under the control of the 9 authority. The fund shall consist of specified amounts of 10 moneys transferred to the authority from the secure an advanced 11 vision for education (SAVE) fund and any other moneys that 12 are lawfully available to the authority. For the fiscal 13 year beginning July 1, 2021, and each fiscal year thereafter 14 until transfers end as required under the bill, and following 15 other transfers required by law, the bill transfers from the 16 SAVE fund an amount equal to 20 percent of the difference 17 between the amount of moneys available in the SAVE fund in the 18 immediately preceding fiscal year and the amount of moneys 19 available in the SAVE fund for the fiscal year prior to the 20 immediately preceding fiscal year, to the economic development 21 authority for deposit in the vacant school building demolition 22 grant fund. Interest or earnings on moneys deposited in the 23 vacant school building demolition grant fund shall be credited 24 to the vacant school building demolition grant fund and moneys 25 credited to the vacant school building demolition grant fund 26 shall not revert at the close of a fiscal year. If, however, 27 the authority receives no qualifying applications for three 28 consecutive years, the moneys in the vacant school building 29 demolition grant fund shall be transferred to the department 30 of revenue for deposit in the secure an advanced vision for 31 education fund for distribution to school districts and no 32 further transfers to the vacant school building demolition 33 grant fund shall occur. 34 The authority is required to prioritize grant applications 35 -4- LSB 2196XC (1) 89 md/jh 4/ 5

S.F. _____ from political subdivisions with the lowest populations as 1 compared to other grant applicants. The authority is also 2 required to coordinate with each political subdivision to 3 develop a plan for the use of grant funds that is consistent 4 with the community development, housing, or economic 5 development goals of the political subdivision and to ensure 6 that the condition and use of the property following demolition 7 is consistent with the property’s surroundings. 8 The political subdivision shall not be required to sell 9 the property after demolition as a condition of the grant. 10 However, if the property is sold by the political subdivision 11 following demolition, proceeds from sale of the property shall, 12 following subtraction of the political subdivision’s costs 13 related to the demolition, including costs to acquire the 14 property if applicable, shall be paid to the authority for 15 deposit in the vacant school building demolition grant fund. 16 Under the bill, the authority may use not more than 5 percent 17 of the moneys in the fund at the beginning of the fiscal year 18 for purposes of administrative costs, finance, compliance, 19 marketing, and program support. 20 The authority is required to submit a report to the general 21 assembly and the governor’s office on or before January 31 of 22 each year, describing the results of the program implemented 23 pursuant to this section and making recommendations for 24 additional program changes. 25 -5- LSB 2196XC (1) 89 md/jh 5/ 5