H.F. 113 Section 1. Section 298.3, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5. a. In addition to the authorized 3 purposes of the revenues from the physical plant and equipment 4 levy under this section, for up to a five-year period, a school 5 district with a budget enrollment of two hundred students or 6 less for each of the three most recent school budget years 7 prior to such period may use the unencumbered and unobligated 8 moneys remaining in the physical plant and equipment levy fund 9 for any school district general fund purpose other than for 10 salaries or benefits. 11 b. Prior to approving the use of the unencumbered and 12 unobligated moneys remaining in the fund, the board of 13 directors of the school district must adopt a resolution 14 directing the county commissioner of elections to submit the 15 question approving such use to the registered voters of the 16 school district. The board of directors of a school district 17 may, with approval of sixty percent of the voters voting on 18 the question, use the unencumbered and unobligated moneys as 19 provided in paragraph “a” . The election shall be held on a date 20 specified in section 39.2, subsection 4, paragraph “c” . 21 c. The board of directors of the school district may adopt 22 a resolution directing the county commissioner of elections to 23 submit the question anew as provided in this subsection five 24 years after the previous election or after expiration of the 25 authorized period, whichever is earlier. 26 Sec. 2. Section 298A.6, Code 2025, is amended to read as 27 follows: 28 298A.6 Public education and recreation levy fund. 29 1. The public education and recreation levy fund is a 30 special revenue fund. A public education and recreation levy 31 fund must be established in any school corporation which levies 32 the tax authorized under section 300.2 or which receives 33 revenue from a chapter 28E agreement authorized under section 34 300.1 . 35 -1- LSB 1234YH (2) 91 jm/md 1/ 3

H.F. 113 2. a. In addition to the authorized purposes of the 1 revenues from the public education and recreation levy, for 2 up to a five-year period, a school district with a budget 3 enrollment of two hundred students or less for each of the 4 three most recent school budget years prior to such period 5 may use the unencumbered and unobligated moneys remaining in 6 the public education and recreation levy fund for any school 7 district general fund purpose, other than for salaries or 8 benefits. 9 b. Prior to approving the use of the unencumbered and 10 unobligated moneys remaining in the fund, the board of 11 directors of the school district must adopt a resolution 12 directing the county commissioner of elections to submit the 13 question approving such use to the registered voters of the 14 school district. The board of directors of a school district 15 may, with approval of sixty percent of the voters voting on 16 the question, use the unencumbered and unobligated moneys as 17 provided in paragraph “a” . The election shall be held on a date 18 specified in section 39.2, subsection 4, paragraph “c” . 19 c. The board of directors of the school district may adopt 20 a resolution directing the county commissioner of elections to 21 submit the question anew as provided in this subsection five 22 years after the previous election or after expiration of the 23 authorized period, whichever is earlier. 24 Sec. 3. Section 423F.3, Code 2025, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 7A. After July 1, 2025, a school district 27 with a budget enrollment of two hundred students or less for 28 each of the three most recent school budget years may adopt a 29 new revenue purpose statement that includes the expenditure 30 of unencumbered and unobligated revenues received under this 31 chapter for up to a five-year period for any school district 32 general fund purpose, other than for salaries or benefits. 33 Such a revenue purpose statement must be approved by at least 34 sixty percent of the total votes cast on the proposition. 35 -2- LSB 1234YH (2) 91 jm/md 2/ 3

H.F. 113 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill authorizes expenditures from certain funds by 4 small school districts. 5 Under the bill, a school district with a budget enrollment 6 of 200 students or less for each of the three most recent 7 budget years may use, for up to five years, the unencumbered 8 and unobligated moneys remaining in the physical plant and 9 equipment levy fund (PPEL) and public education and recreation 10 levy fund (PERL) for any school district general fund purpose, 11 other than for salary and benefits. The bill also permits such 12 a school district to adopt a new revenue purpose statement 13 that includes the use of unobligated and unreserved revenues 14 received from the secure an advanced vision for education fund 15 (SAVE) for up to five years for any school district general 16 fund purpose, other than for salary and benefits. Such use 17 authorizations must be approved at an election where the 18 question or the revenue purpose statement, as applicable, 19 receives at least 60 percent approval. 20 -3- LSB 1234YH (2) 91 jm/md 3/ 3