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Senate File 74 - IntroducedA Bill ForAn Act 1relating to school funding by modifying provisions
2relating to the collection of sales tax for deposit in the
3secure an advanced vision for education fund, provisions
4relating to the use of tax revenue from the secure an
5advanced vision for education fund, and provisions relating
6to the calculation of the additional property tax levy, and
7making appropriations.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.2, subsection 8, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. e. Foundation base supplement payments
4received under section 257.16D.
5 Sec. 2. Section 257.4, subsection 1, paragraph a, Code 2019,
6is amended by adding the following new subparagraph:
7 NEW SUBPARAGRAPH. (10) The amount of the foundation base
8supplement payment to be received by the school district under
9section 257.16D.
10 Sec. 3. Section 257.4, subsection 1, paragraph b, Code 2019,
11is amended to read as follows:
12b. For the budget year beginning July 1, 2008, and
13succeeding budget years, the department of management shall
14annually determine an adjusted additional property tax levy
15and a statewide maximum adjusted additional property tax
16levy rate, not to exceed the statewide average additional
17property tax levy rate, calculated by dividing the total
18adjusted additional property tax levy dollars statewide by the
19statewide total net taxable valuation. For purposes of this
20paragraph, the adjusted additional property tax levy shall be
21that portion of the additional property tax levy corresponding
22to the state cost per pupil multiplied by a school district’s
23weighted enrollment, and then multiplied by one hundred
24percent less the regular program foundation base per pupil
25percentage pursuant to section 257.1, and then reduced by the
26amount of the property tax replacement payment to be received
27under section 257.16B and the amount of the foundation base
28supplement payment to be received under section 257.16D. The
29district shall receive adjusted additional property tax levy
30aid in an amount equal to the difference between the adjusted
31additional property tax levy rate and the statewide maximum
32adjusted additional property tax levy rate, as applied per
33thousand dollars of assessed valuation on all taxable property
34in the district. The statewide maximum adjusted additional
35property tax levy rate shall be annually determined by the
-1-1department taking into account amounts allocated pursuant to
2section 257.15, subsection 4, and the balance of the property
3tax equity and relief fund created in section 257.16A at the
4end of the calendar year.
5 Sec. 4. Section 257.15, subsection 4, paragraph b, Code
62019, is amended to read as follows:
7b. After lowering all school district adjusted additional
8property tax levy rates to the statewide maximum adjusted
9additional property tax levy rate under paragraph “a”, the
10department of management shall use any remaining funds at the
11end of the calendar year to further lower additional property
12taxes by increasing for the budget year beginning the following
13July 1, the state regular program foundation base per pupil
14 percentage under section 257.1. Moneys used pursuant to this
15paragraph shall supplant an equal amount of the appropriation
16made from the general fund of the state pursuant to section
17257.16 that represents the increase in state foundation aid.
18 Sec. 5. NEW SECTION. 257.16D Foundation base supplement
19fund.
201. A foundation base supplement fund is created as a
21separate and distinct fund in the state treasury under the
22control of the department of management. Moneys in the fund
23include revenues credited to the fund, appropriations made to
24the fund, and other moneys deposited into the fund.
252. a. There is appropriated annually from the fund to
26the department of management an amount necessary to make all
27foundation base supplement payments under this section. The
28department of management shall calculate each school district’s
29foundation base supplement payment based on the distribution
30methodology under paragraph “b”.
31b. The moneys available in a fiscal year in the foundation
32base supplement fund shall be distributed by the department of
33revenue to each school district on a per pupil basis calculated
34using each school district’s weighted enrollment, as defined
35in section 257.6, for that fiscal year. However, the amount
-2-1of a school district’s foundation base supplement payment for
2a budget year shall not exceed an amount equal to the school
3district’s weighted enrollment for the budget year multiplied
4by the amount for the budget year calculated under section
5257.16B, subsection 2, paragraph “f”, subparagraph (2), minus
6the amount of the school district’s property tax replacement
7payment under section 257.16B for the budget year.
83. Notwithstanding section 8.33, any moneys remaining in
9the foundation base supplement fund at the end of a fiscal year
10shall not revert to any other fund but shall remain in the
11foundation base supplement fund for use as provided in this
12section for the following fiscal year.
13 Sec. 6. NEW SECTION. 257.51 Career academy fund — grant
14program.
151. A career academy fund is created and established as
16a separate and distinct fund in the state treasury under the
17control of the department of education.
182. a. In addition to moneys deposited in the career
19academy fund pursuant to section 423F.2, the department of
20education may accept gifts, grants, bequests, and other private
21contributions, as well as state or federal funds, and shall
22deposit the moneys in the fund to be used for purposes of
23this section. Moneys in the fund are appropriated to the
24department of education and shall be used for the purposes of
25this section.
26b. Notwithstanding section 8.33, moneys in the fund
27that remain unencumbered or unobligated at the close of the
28fiscal year shall not revert but shall remain available for
29expenditure for the purposes of this section in succeeding
30fiscal years. Notwithstanding section 12C.7, subsection 2,
31interest earned on moneys in the career academy fund shall be
32credited to the fund.
333. The department of education shall adopt rules to
34establish and administer a career academy grant program
35to provide for the allocation of money in the fund in
-3-1the form of competitive grants, not to exceed one million
2dollars per grant, to school corporations for career academy
3infrastructure, career academy equipment, or both, in
4accordance with the goals of this section and to further the
5goals of the establishment and operation of career academies
6under section 258.15. The rules adopted by the department
7of education shall specify the eligibility of applicants
8and eligible items for grant funding. Priority for grants
9shall first be given to applications to establish new career
10academies that are organized as regional career and technical
11education planning partnerships pursuant to section 258.14 with
12three or more school districts. Subsequent priority shall
13be given to applications for expanding and updating existing
14facilities and infrastructure to serve as career academies.
15 Sec. 7. Section 423.2, subsection 12, Code 2019, is amended
16to read as follows:
1712. The sales tax rate of six percent is reduced to five
18percent on January 1, 2030 2051.
19 Sec. 8. Section 423.2A, subsection 2, paragraph c, Code
202019, is amended to read as follows:
21c. Transfer one-sixth of the remaining revenues to the
22secure an advanced vision for education fund created in section
23423F.2. This paragraph “c” is repealed December 31, 2029
24 January 1, 2051.
25 Sec. 9. Section 423.5, subsection 4, Code 2019, is amended
26to read as follows:
274. The use tax rate of six percent is reduced to five
28percent on January 1, 2030 2051.
29 Sec. 10. Section 423.43, subsection 1, paragraph b, Code
302019, is amended to read as follows:
31b. Subsequent to the deposit into the general fund of
32the state and after the transfer of such revenues collected
33under chapter 423B, the department shall transfer one-sixth of
34such remaining revenues to the secure an advanced vision for
35education fund created in section 423F.2. This paragraph is
-4-1repealed December 31, 2029 January 1, 2051.
2 Sec. 11. Section 423F.2, subsection 3, Code 2019, is amended
3to read as follows:
43. a. The moneys available in a fiscal year in the secure
5an advanced vision for education fund shall be distributed by
6the department of revenue to each school district on a per
7pupil basis calculated using each school district’s budget
8enrollment, as defined in section 257.6, for that fiscal year.
9b. (1) Prior to distribution of moneys in the secure an
10advanced vision for education fund to school districts, two
11and one-tenths percent of the moneys available in a an amount
12equal to the equity transfer amount for the fiscal year minus
13the foundation base transfer amount for the fiscal year shall
14be distributed and credited to the property tax equity and
15relief fund created in section 257.16A, an amount equal to
16the foundation base transfer amount shall be distributed and
17credited to the foundation base supplement fund created in
18section 257.16D, and an amount equal to the career academy
19transfer amount for the fiscal year shall be distributed and
20credited to the career academy fund created in section 257.51.
21(2) For purposes of this subsection, the equity transfer
22amount is determined by multiplying the equity transfer
23percentage by the amount of moneys available in the secure an
24advanced vision for education fund in the fiscal year.
25(a) For the fiscal year beginning July 1, 2018, the equity
26transfer percentage is two and one-tenth percent.
27(b) For each fiscal year beginning on or after July 1, 2019,
28the equity transfer percentage is equal to the equity transfer
29percentage for the immediately preceding fiscal year, unless
30the amount of moneys available in the secure an advanced vision
31for education fund in the fiscal year equals or exceeds one
32hundred two percent of the amount of moneys available in the
33fund for the immediately preceding fiscal year, in which case
34the equity transfer percentage shall be the equity transfer
35percentage for the immediately preceding fiscal year plus one
-5-1percent subject to the limitation in subparagraph division (c).
2(c) If the equity transfer percentage calculated under
3subparagraph division (b) exceeds twelve percent, the equity
4transfer percentage for that fiscal year shall be twelve
5percent.
6(3) For purposes of this subsection, the foundation
7base transfer amount equals the equity transfer amount for
8the fiscal year under subparagraph (2) minus the sum of the
9following:
10(a) Two and one-tenth percent of the amount of the moneys
11available in the secure an advanced vision for education fund
12in the fiscal year.
13(b) Two-thirds of the product of the equity transfer
14percentage for the fiscal year minus two and one-tenth percent
15multiplied by the moneys available in the secure an advanced
16vision for education fund in the fiscal year.
17(4) (a) For purposes of this subsection, the career academy
18transfer amount for the fiscal year beginning July 1, 2019, is
19one million dollars.
20(b) For each fiscal year beginning on or after July 1,
212020, the career academy transfer amount is equal to the lesser
22of five million dollars or the amount of the career academy
23transfer amount for the immediately preceding fiscal year,
24unless the amount of moneys available in the secure an advanced
25vision for education fund in the fiscal year equals or exceeds
26one hundred two and one-half percent of the amount of moneys
27available in the fund for the immediately preceding fiscal
28year, in which case the career academy transfer amount equals
29the lesser of five million dollars or the sum of the amount
30of the career academy transfer amount for the immediately
31preceding fiscal year plus one-half percent of the amount of
32moneys available in the secure an advanced vision for education
33fund in the fiscal year following the deposit of revenues in
34the property tax equity and relief fund and the foundation base
35supplement fund.
-6-1 Sec. 12. Section 423F.3, subsection 3, paragraph b, Code
22019, is amended to read as follows:
3b. (1) If the board of directors intends to use funds for
4purposes other than those listed in paragraph “a”, or change the
5use of funds to purposes other than those listed in paragraph
6“a”, the board shall adopt a revenue purpose statement or amend
7an existing revenue purpose statement, subject to approval of
8the electors, listing the proposed use of the funds. School
9districts shall submit the statement to the voters no later
10than sixty days prior to the expiration of any existing revenue
11purpose statement or change in use not included in the existing
12revenue purpose statement.
13(2) (a) Notwithstanding any provision of law to the
14contrary, for each school district with an existing revenue
15purpose statement for the use of revenues from the secure an
16advanced vision for education fund adopted under this paragraph
17or adopted under another provision of law before July 1,
182019, such revenue purpose statement shall terminate and be
19of no further force and effect on January 1, 2031, or the
20expiration date of the revenue purpose statement, whichever is
21earlier. If such a school district intends to use funds for
22purposes other than those listed in paragraph “a” and does not
23intend to operate without a revenue purpose statement on or
24after January 1, 2031, or the expiration date of the revenue
25purpose statement, whichever is earlier, the board of directors
26shall submit a revenue purpose statement for approval by the
27electors under subparagraph (1) on or after July 1, 2019,
28and such revenue purpose statement submitted to the electors
29shall include all proposed uses including those previously
30approved by the electors, if applicable. The following, in
31substantially the following form, shall be included in the
32notice of the election published under paragraph “d” and
33published on the school district’s internet site:
34If a majority of eligible electors voting on the question
35fail to approve this revenue purpose statement, revenues
-7-1received by the school district from the secure an advanced
2vision for education fund shall first be expended for . . . .
3(State the purposes in the order listed in subsection 1 and as
4required by subsection 4 of this section for which the revenues
5received by the school district under this chapter will be
6expended.)
7(b) Unless a new revenue purpose statement is adopted by
8the electors, the existing revenue purpose statement remains
9in effect until January 1, 2031, or the expiration date of the
10revenue purpose statement, whichever is earlier. If a revenue
11purpose statement is terminated under the provisions of this
12subparagraph, such termination shall not affect the validity
13of or a first lien on bonds issued under section 423E.5, Code
142019, or section 423F.5 prior to the date the revenue purpose
15statement is terminated under subparagraph division (a), or
16the validity of a contract or other obligation of the school
17district secured in whole or in part by or requiring the
18payment of funds received under this chapter in effect prior
19to the date the revenue purpose statement is terminated under
20subparagraph division (a).
21 Sec. 13. Section 423F.3, subsection 5, paragraph b, Code
222019, is amended to read as follows:
23b. The infeasibility cost-benefit analysis of remodeling,
24reconstructing, or repairing existing buildings.
25 Sec. 14. Section 423F.3, subsection 5, Code 2019, is amended
26by adding the following new paragraph:
27 NEW PARAGRAPH. i. Benefits and effects of the new
28construction on student learning.
29 Sec. 15. Section 423F.3, subsection 6, Code 2019, is amended
30by adding the following new paragraph:
31 NEW PARAGRAPH. 0d. Additionally, “school infrastructure”
32includes school safety and security infrastructure. For
33purposes of this paragraph, “school safety and security
34infrastructure” includes but is not limited to safe rooms,
35remote entry technology and equipment, security camera systems,
-8-1card access systems, and communication systems with access to
2fire and police emergency frequencies. For purposes of this
3paragraph, “school safety and security infrastructure” does
4not include the cost of personnel, development of safety and
5security plans, or training related to the implementation of
6safety and security plans. It is the intent of the general
7assembly that each school district prioritize the use of
8revenues under this chapter for secure entries for the
9district’s attendance centers before expending such revenues
10for athletic facility infrastructure projects.
11 Sec. 16. Section 423F.3, Code 2019, is amended by adding the
12following new subsection:
13 NEW SUBSECTION. 6A. a. Prior to approving the use
14of revenues received under this chapter for an athletic
15facility infrastructure project within the scope of the
16school district’s approved revenue purpose statement or
17pursuant to subsection 4 for a school district without an
18approved revenue statement, the board of directors shall adopt
19a resolution setting forth the proposal for the athletic
20facility infrastructure project and hold an additional public
21hearing on the issue of construction of the athletic facility.
22Notice of the time and place of the public hearing shall be
23published not less than ten nor more than twenty days before
24the public hearing in a newspaper which is a newspaper of
25general circulation in the school district. If at any time
26prior to the fifteenth day following the hearing, the secretary
27of the board of directors receives a petition containing the
28required number of signatures and asking that the question
29of the approval of the use of revenues for the athletic
30facility infrastructure project be submitted to the voters
31of the school district, the board of directors shall either
32rescind the board’s resolution for the use of revenues for
33the athletic facility infrastructure project or direct the
34county commissioner of elections to submit the question to the
35registered voters of the school district at an election held
-9-1on a date specified in section 39.2, subsection 4, paragraph
2“c”. The petition must be signed by eligible electors equal
3in number to not less than one hundred or thirty percent of
4the number of voters at the last preceding election of school
5officials under section 277.1, whichever is greater. If a
6majority of those voting on the question favors the use of the
7revenues for the athletic facility infrastructure project, the
8board shall be authorized to approve such use by resolution of
9the board. If a majority of those voting on the question does
10not favor the use of the revenues for the athletic facility
11infrastructure project, the board of directors shall rescind
12the board’s resolution for the use of revenues for the athletic
13facility infrastructure project. If a petition is not received
14by the board of directors within the prescribed time period,
15the board of directors may approve the use of revenues for
16the athletic facility infrastructure project without voter
17approval.
18b. After fourteen days from the date of the hearing under
19paragraph “a” or fourteen days after the date of the election
20held under paragraph “a”, if applicable, whichever is later, an
21action shall not be brought questioning the board of directors’
22authority to use funds for the athletic facility infrastructure
23project or questioning the legality of any proceedings in
24connection with the authorization of such use.
25c. For purposes of this subsection:
26(1) “Athletic facility” means a building or structure, or
27portion thereof, that is not physically attached to a student
28attendance center.
29(2) “Athletic facility infrastructure project” means a school
30infrastructure project that includes in whole or in part the
31construction of an athletic facility.
32(3) “Construction” does not include repair or maintenance
33of an existing facility.
34 Sec. 17. Section 423F.4, Code 2019, is amended to read as
35follows:
-10- 1423F.4 Borrowing authority for school districts.
21. A Subject to the conditions established under subsection
32, a school district may anticipate its share of the revenues
4under section 423F.2 by issuing bonds in the manner provided in
5section 423E.5, Code 2019. However, to the extent any school
6district has issued bonds anticipating the proceeds of an
7extended local sales and services tax for school infrastructure
8purposes imposed by a county pursuant to former chapter 423E,
9Code and Code Supplement 2007, prior to July 1, 2008, the
10pledge of such revenues for the payment of principal and
11interest on such bonds shall be replaced by a pledge of its
12share of the revenues under section 423F.2.
132. a. Bonds issued on or after July 1, 2018, shall not be
14sold at public sale as provided in chapter 75, or at a private
15sale, without notice and hearing. Notice of the time and place
16of the public hearing shall be published not less than ten nor
17more than twenty days before the public hearing in a newspaper
18which is a newspaper of general circulation in the school
19district.
20b. For bonds subject to the requirements of paragraph
21“a”, if at any time prior to the fifteenth day following the
22hearing, the secretary of the board of directors receives a
23petition containing the required number of signatures and
24asking that the question of the issuance of such bonds be
25submitted to the voters of the school district, the board shall
26either rescind its adoption of the resolution or direct the
27county commissioner of elections to submit the question to the
28registered voters of the school district at an election held
29on a date specified in section 39.2, subsection 4, paragraph
30“c”. The petition must be signed by eligible electors equal
31in number to not less than one hundred or thirty percent of
32the number of voters at the last preceding election of school
33officials under section 277.1, whichever is greater. If the
34board submits the question at an election and a majority of
35those voting on the question favors issuance of the bonds, the
-11-1board shall be authorized to issue the bonds.
2c. After fourteen days from the date of the hearing under
3paragraph “a” or fourteen days after the date of the election
4held under paragraph “b”, if applicable, whichever is later,
5an action shall not be brought questioning the legality of
6any bonds or the power of the authority to issue any bonds
7or to the legality of any proceedings in connection with the
8authorization or issuance of the bonds.
9 Sec. 18. Section 423F.6, Code 2019, is amended to read as
10follows:
11423F.6 Repeal.
12This chapter is repealed December 31, 2029 January 1, 2051.
13 Sec. 19. STATE MANDATE FUNDING SPECIFIED. In accordance
14with section 25B.2, subsection 3, the state cost of requiring
15compliance with any state mandate included in this Act shall
16be paid by a school district from state school foundation aid
17received by the school district under section 257.16. This
18specification of the payment of the state cost shall be deemed
19to meet all of the state funding-related requirements of
20section 25B.2, subsection 3, and no additional state funding
21shall be necessary for the full implementation of this Act
22by and enforcement of this Act against all affected school
23districts.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27Code section 423.2 imposes a state tax of 6 percent upon
28the sales price of all sales of tangible personal property,
29consisting of goods, wares, merchandise, and other items
30designated by statute, sold at retail in the state to consumers
31or users, except as otherwise provided by Code chapter 423.
32Generally, by operation of law, a sale subject to the sales
33tax is also subject to the use tax. Following the transfer
34of amounts required by statute, if applicable, one-sixth of
35the remaining state sales tax revenue from the 6 percent tax
-12-1is transferred to the secure an advanced vision for education
2(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
3fund are allocated to school districts on a per pupil basis to
4be used for infrastructure and property tax reduction purposes
5specified in Code chapter 423F. Under current law, the sales
6tax rate of 6 percent is reduced to 5 percent on January 1,
72030, and Code chapter 423F, along with other corresponding
8provisions, is repealed December 31, 2029.
9This bill extends the 6 percent sales tax rate, the
10allocation to the SAVE fund, and the statutory repeal of Code
11chapter 423F until January 1, 2051.
12Code section 423F.2 provides that prior to distribution of
13SAVE revenues to school districts, 2.1 percent of the moneys
14available in the SAVE fund are distributed and credited to
15the property tax equity and relief (PTER) fund to be used for
16additional property tax levy aid. The bill provides that for
17each fiscal year beginning on or after July 1, 2019, the equity
18transfer amount, as created in the bill, is distributed and
19credited to the PTER fund and foundation base supplement fund
20in amounts specified in the bill. The bill creates the equity
21transfer percentage, which is used to determine the amount of
22the equity transfer amount, and is equal to the equity transfer
23percentage for the immediately preceding fiscal year, unless
24the amount of money available in the SAVE fund in the fiscal
25year is equal to or exceeds 102 percent of the amount of money
26available in the SAVE fund for the immediately preceding fiscal
27year, in which case the equity transfer percentage shall be the
28equity transfer percentage for the immediately preceding fiscal
29year plus 1 percent. However, the bill caps the percentage at
3012 percent. The equity transfer percentage for the fiscal year
31beginning July 1, 2018, is 2.1 percent. The amount required to
32be transferred from the SAVE fund to the PTER fund is equal to
33the equity transfer amount minus the foundation base transfer
34amount.
35The bill also establishes a foundation base transfer amount
-13-1that equals the equity transfer amount minus the sum of 2.1
2percent of the amount of the moneys available in the SAVE fund
3in the fiscal year plus two-thirds of the product of the equity
4transfer percentage minus 2.1 percent multiplied by the moneys
5available in the SAVE fund in the fiscal year. An amount equal
6to the foundation base transfer amount is credited to the
7foundation base supplement fund to be used by the department of
8management for purposes of making foundation base supplement
9payments to school districts on a per pupil basis calculated
10using each school district’s weighted enrollment and subject to
11specified total foundation base supplement limits in the bill.
12The bill also establishes a career academy transfer amount
13that for the fiscal year beginning July 1, 2019, is $1 million.
14For each fiscal year beginning on or after July 1, 2020, the
15career academy transfer amount is equal to the lesser of $5
16million or the amount of the career academy transfer amount
17for the immediately preceding fiscal year, unless the amount
18of moneys available in the SAVE fund in the fiscal year equals
19or exceeds 102.5 percent of the amount of moneys available in
20the fund for the immediately preceding fiscal year, in which
21case the career academy transfer amount equals the lesser of
22$5 million or the sum of the amount of the career academy
23transfer amount for the immediately preceding fiscal year plus
240.5 percent of the amount of moneys available in the SAVE fund
25in the fiscal year following the deposit of revenues in the
26property tax equity and relief fund and the foundation base
27supplement fund.
28An amount equal to the career academy transfer amount
29is credited to the career academy fund to be used by the
30department of education for purposes of providing competitive
31grants, not to exceed $1 million per grant, to school districts
32for career academy infrastructure, career academy equipment, or
33both, in accordance with the bill and to further the goals of
34the establishment and operation of career academies under Code
35section 258.15.
-14- 1Under the bill, existing revenue purpose statements for the
2use of SAVE fund revenues adopted before July 1, 2019, shall
3terminate and be of no further force and effect on January 1,
42031, or the expiration date of the revenue purpose statement,
5whichever is earlier. If a school district intends to use
6SAVE fund revenues for purposes other than those which can
7be approved by the school board alone and does not intend to
8operate without a revenue purpose statement on or after January
91, 2031, or the expiration of the revenue purpose statement,
10whichever is earlier, the school board must submit a revenue
11purpose statement for approval by the electors on or after
12July 1, 2019, and such revenue purpose statement submitted to
13the electors shall include all proposed uses including those
14previously approved by the electors, if applicable. The bill
15specifies that if a revenue purpose statement is terminated
16under the provisions of the bill, such termination shall
17not affect the validity of or a first lien on bonds issued
18under Code sections 423E.5 and 423F.5 prior to the date of
19termination, or the validity of a contract or other obligation
20of the school district secured in whole or in part by or
21requiring the payment of SAVE revenues in effect prior to the
22date of termination.
23The bill provides that prior to approving the use of SAVE
24revenues for an athletic facility infrastructure project
25that is defined in the bill to mean a school infrastructure
26project that includes in whole or in part, the construction
27of an athletic facility, the board of directors must first
28hold an additional public hearing on the issue of the athletic
29facility. The bill defines “athletic facility” to mean
30a building or structure, or portion thereof, that is not
31physically attached to a student attendance center. If at any
32time prior to the 15th day following the hearing, the secretary
33of the board of directors receives a petition containing the
34required number of signatures and asking that the question of
35the approval of the use of revenues for the athletic facility
-15-1infrastructure project be submitted to the voters of the school
2district, the board of directors shall either rescind the
3resolution for use of SAVE revenues for the athletic facility
4infrastructure project or direct the county commissioner of
5elections to submit the question to the registered voters of
6the school district. If a majority of those voting on the
7question favors the use of the SAVE revenues for the athletic
8facility infrastructure project, the board shall be authorized
9to approve such use by resolution of the board. If a majority
10of those voting on the question does not favor the use of the
11SAVE revenues for the school infrastructure project, the board
12of directors shall rescind the board’s resolution for use of
13SAVE revenues for the athletic facility infrastructure project.
14If a petition is not received by the board of directors
15within the prescribed time period, the board of directors may
16approve the use of SAVE revenues for the athletic facility
17infrastructure project without voter approval. The bill also
18establishes limitations on the period of time to bring an
19action to question the authority to use funds for such purpose
20or the legality of any proceedings in connection with the
21authorization of such use.
22Code section 423F.3 defines “school infrastructure” for
23purposes of the uses for which school districts are permitted
24to expend SAVE revenues. The bill adds “school safety and
25security infrastructure”, as defined in the bill, to the
26definition of “school infrastructure”. The bill specifies
27that it is the intent of the general assembly that each school
28district prioritize the use of SAVE revenues for secure entries
29for the district’s attendance centers before expending such
30revenues for athletic facility infrastructure projects.
31Current law authorizes a school district to anticipate
32its share of SAVE fund revenues by issuing bonds without
33voter approval. The bill provides that revenue bonds issued
34on or after July 1, 2019, shall not be sold at public sale
35or at a private sale without notice and a public hearing.
-16-1Additionally, if at any time prior to the 15th day following
2the hearing, the secretary of the board of directors receives
3a petition containing the required number of signatures and
4asking that the question of the issuance of such bonds be
5submitted to the voters of the school district, the school
6board shall either rescind its adoption of the resolution or
7direct the county commissioner of elections to submit the
8question to the registered voters of the school district. The
9petition must be signed by eligible electors equal in number
10to not less than 100 or 30 percent of the number of voters at
11the last preceding election of school officials, whichever
12is greater. If the school board submits the question at an
13election and a majority of those voting on the question favors
14issuance of the bonds, the board shall be authorized to issue
15the bonds. The bill also places limitations on the period
16of time during which an action questioning the legality or
17procedural compliance for the issuance of such bonds may be
18brought.
19Currently, a school district with a certified enrollment
20of fewer than 250 pupils in the entire district or certified
21enrollment of fewer than 100 pupils in high school must apply
22to the department of education for a certificate of need
23before the school district can expend the supplemental school
24infrastructure amount received for new construction or for
25payments for bonds issued for new construction against the
26supplemental school infrastructure amount. The bill modifies
27the criteria to be used by the department of education in
28determining whether to issue a certificate of need to include
29the cost-benefit analysis of remodeling, reconstructing, or
30repairing existing buildings versus new construction and
31consideration of the benefit of the new construction on student
32learning.
33The bill may include a state mandate as defined in Code
34section 25B.3. The bill requires that the state cost of
35any state mandate included in the bill be paid by a school
-17-1district from state school foundation aid received by the
2school district under Code section 257.16. The specification
3is deemed to constitute state compliance with any state mandate
4funding-related requirements of Code section 25B.2. The
5inclusion of this specification is intended to reinstate the
6requirement of political subdivisions to comply with any state
7mandates included in the bill.
-18-md/jh
2relating to the collection of sales tax for deposit in the
3secure an advanced vision for education fund, provisions
4relating to the use of tax revenue from the secure an
5advanced vision for education fund, and provisions relating
6to the calculation of the additional property tax levy, and
7making appropriations.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.2, subsection 8, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. e. Foundation base supplement payments
4received under section 257.16D.
5 Sec. 2. Section 257.4, subsection 1, paragraph a, Code 2019,
6is amended by adding the following new subparagraph:
7 NEW SUBPARAGRAPH. (10) The amount of the foundation base
8supplement payment to be received by the school district under
9section 257.16D.
10 Sec. 3. Section 257.4, subsection 1, paragraph b, Code 2019,
11is amended to read as follows:
12b. For the budget year beginning July 1, 2008, and
13succeeding budget years, the department of management shall
14annually determine an adjusted additional property tax levy
15and a statewide maximum adjusted additional property tax
16levy rate, not to exceed the statewide average additional
17property tax levy rate, calculated by dividing the total
18adjusted additional property tax levy dollars statewide by the
19statewide total net taxable valuation. For purposes of this
20paragraph, the adjusted additional property tax levy shall be
21that portion of the additional property tax levy corresponding
22to the state cost per pupil multiplied by a school district’s
23weighted enrollment, and then multiplied by one hundred
24percent less the regular program foundation base per pupil
25percentage pursuant to section 257.1, and then reduced by the
26amount of the property tax replacement payment to be received
27under section 257.16B and the amount of the foundation base
28supplement payment to be received under section 257.16D. The
29district shall receive adjusted additional property tax levy
30aid in an amount equal to the difference between the adjusted
31additional property tax levy rate and the statewide maximum
32adjusted additional property tax levy rate, as applied per
33thousand dollars of assessed valuation on all taxable property
34in the district. The statewide maximum adjusted additional
35property tax levy rate shall be annually determined by the
-1-1department taking into account amounts allocated pursuant to
2section 257.15, subsection 4, and the balance of the property
3tax equity and relief fund created in section 257.16A at the
4end of the calendar year.
5 Sec. 4. Section 257.15, subsection 4, paragraph b, Code
62019, is amended to read as follows:
7b. After lowering all school district adjusted additional
8property tax levy rates to the statewide maximum adjusted
9additional property tax levy rate under paragraph “a”, the
10department of management shall use any remaining funds at the
11end of the calendar year to further lower additional property
12taxes by increasing for the budget year beginning the following
13July 1, the state regular program foundation base per pupil
14 percentage under section 257.1. Moneys used pursuant to this
15paragraph shall supplant an equal amount of the appropriation
16made from the general fund of the state pursuant to section
17257.16 that represents the increase in state foundation aid.
18 Sec. 5. NEW SECTION. 257.16D Foundation base supplement
19fund.
201. A foundation base supplement fund is created as a
21separate and distinct fund in the state treasury under the
22control of the department of management. Moneys in the fund
23include revenues credited to the fund, appropriations made to
24the fund, and other moneys deposited into the fund.
252. a. There is appropriated annually from the fund to
26the department of management an amount necessary to make all
27foundation base supplement payments under this section. The
28department of management shall calculate each school district’s
29foundation base supplement payment based on the distribution
30methodology under paragraph “b”.
31b. The moneys available in a fiscal year in the foundation
32base supplement fund shall be distributed by the department of
33revenue to each school district on a per pupil basis calculated
34using each school district’s weighted enrollment, as defined
35in section 257.6, for that fiscal year. However, the amount
-2-1of a school district’s foundation base supplement payment for
2a budget year shall not exceed an amount equal to the school
3district’s weighted enrollment for the budget year multiplied
4by the amount for the budget year calculated under section
5257.16B, subsection 2, paragraph “f”, subparagraph (2), minus
6the amount of the school district’s property tax replacement
7payment under section 257.16B for the budget year.
83. Notwithstanding section 8.33, any moneys remaining in
9the foundation base supplement fund at the end of a fiscal year
10shall not revert to any other fund but shall remain in the
11foundation base supplement fund for use as provided in this
12section for the following fiscal year.
13 Sec. 6. NEW SECTION. 257.51 Career academy fund — grant
14program.
151. A career academy fund is created and established as
16a separate and distinct fund in the state treasury under the
17control of the department of education.
182. a. In addition to moneys deposited in the career
19academy fund pursuant to section 423F.2, the department of
20education may accept gifts, grants, bequests, and other private
21contributions, as well as state or federal funds, and shall
22deposit the moneys in the fund to be used for purposes of
23this section. Moneys in the fund are appropriated to the
24department of education and shall be used for the purposes of
25this section.
26b. Notwithstanding section 8.33, moneys in the fund
27that remain unencumbered or unobligated at the close of the
28fiscal year shall not revert but shall remain available for
29expenditure for the purposes of this section in succeeding
30fiscal years. Notwithstanding section 12C.7, subsection 2,
31interest earned on moneys in the career academy fund shall be
32credited to the fund.
333. The department of education shall adopt rules to
34establish and administer a career academy grant program
35to provide for the allocation of money in the fund in
-3-1the form of competitive grants, not to exceed one million
2dollars per grant, to school corporations for career academy
3infrastructure, career academy equipment, or both, in
4accordance with the goals of this section and to further the
5goals of the establishment and operation of career academies
6under section 258.15. The rules adopted by the department
7of education shall specify the eligibility of applicants
8and eligible items for grant funding. Priority for grants
9shall first be given to applications to establish new career
10academies that are organized as regional career and technical
11education planning partnerships pursuant to section 258.14 with
12three or more school districts. Subsequent priority shall
13be given to applications for expanding and updating existing
14facilities and infrastructure to serve as career academies.
15 Sec. 7. Section 423.2, subsection 12, Code 2019, is amended
16to read as follows:
1712. The sales tax rate of six percent is reduced to five
18percent on January 1, 2030 2051.
19 Sec. 8. Section 423.2A, subsection 2, paragraph c, Code
202019, is amended to read as follows:
21c. Transfer one-sixth of the remaining revenues to the
22secure an advanced vision for education fund created in section
23423F.2. This paragraph “c” is repealed December 31, 2029
24 January 1, 2051.
25 Sec. 9. Section 423.5, subsection 4, Code 2019, is amended
26to read as follows:
274. The use tax rate of six percent is reduced to five
28percent on January 1, 2030 2051.
29 Sec. 10. Section 423.43, subsection 1, paragraph b, Code
302019, is amended to read as follows:
31b. Subsequent to the deposit into the general fund of
32the state and after the transfer of such revenues collected
33under chapter 423B, the department shall transfer one-sixth of
34such remaining revenues to the secure an advanced vision for
35education fund created in section 423F.2. This paragraph is
-4-1repealed December 31, 2029 January 1, 2051.
2 Sec. 11. Section 423F.2, subsection 3, Code 2019, is amended
3to read as follows:
43. a. The moneys available in a fiscal year in the secure
5an advanced vision for education fund shall be distributed by
6the department of revenue to each school district on a per
7pupil basis calculated using each school district’s budget
8enrollment, as defined in section 257.6, for that fiscal year.
9b. (1) Prior to distribution of moneys in the secure an
10advanced vision for education fund to school districts, two
11and one-tenths percent of the moneys available in a an amount
12equal to the equity transfer amount for the fiscal year minus
13the foundation base transfer amount for the fiscal year shall
14be distributed and credited to the property tax equity and
15relief fund created in section 257.16A, an amount equal to
16the foundation base transfer amount shall be distributed and
17credited to the foundation base supplement fund created in
18section 257.16D, and an amount equal to the career academy
19transfer amount for the fiscal year shall be distributed and
20credited to the career academy fund created in section 257.51.
21(2) For purposes of this subsection, the equity transfer
22amount is determined by multiplying the equity transfer
23percentage by the amount of moneys available in the secure an
24advanced vision for education fund in the fiscal year.
25(a) For the fiscal year beginning July 1, 2018, the equity
26transfer percentage is two and one-tenth percent.
27(b) For each fiscal year beginning on or after July 1, 2019,
28the equity transfer percentage is equal to the equity transfer
29percentage for the immediately preceding fiscal year, unless
30the amount of moneys available in the secure an advanced vision
31for education fund in the fiscal year equals or exceeds one
32hundred two percent of the amount of moneys available in the
33fund for the immediately preceding fiscal year, in which case
34the equity transfer percentage shall be the equity transfer
35percentage for the immediately preceding fiscal year plus one
-5-1percent subject to the limitation in subparagraph division (c).
2(c) If the equity transfer percentage calculated under
3subparagraph division (b) exceeds twelve percent, the equity
4transfer percentage for that fiscal year shall be twelve
5percent.
6(3) For purposes of this subsection, the foundation
7base transfer amount equals the equity transfer amount for
8the fiscal year under subparagraph (2) minus the sum of the
9following:
10(a) Two and one-tenth percent of the amount of the moneys
11available in the secure an advanced vision for education fund
12in the fiscal year.
13(b) Two-thirds of the product of the equity transfer
14percentage for the fiscal year minus two and one-tenth percent
15multiplied by the moneys available in the secure an advanced
16vision for education fund in the fiscal year.
17(4) (a) For purposes of this subsection, the career academy
18transfer amount for the fiscal year beginning July 1, 2019, is
19one million dollars.
20(b) For each fiscal year beginning on or after July 1,
212020, the career academy transfer amount is equal to the lesser
22of five million dollars or the amount of the career academy
23transfer amount for the immediately preceding fiscal year,
24unless the amount of moneys available in the secure an advanced
25vision for education fund in the fiscal year equals or exceeds
26one hundred two and one-half percent of the amount of moneys
27available in the fund for the immediately preceding fiscal
28year, in which case the career academy transfer amount equals
29the lesser of five million dollars or the sum of the amount
30of the career academy transfer amount for the immediately
31preceding fiscal year plus one-half percent of the amount of
32moneys available in the secure an advanced vision for education
33fund in the fiscal year following the deposit of revenues in
34the property tax equity and relief fund and the foundation base
35supplement fund.
-6-1 Sec. 12. Section 423F.3, subsection 3, paragraph b, Code
22019, is amended to read as follows:
3b. (1) If the board of directors intends to use funds for
4purposes other than those listed in paragraph “a”, or change the
5use of funds to purposes other than those listed in paragraph
6“a”, the board shall adopt a revenue purpose statement or amend
7an existing revenue purpose statement, subject to approval of
8the electors, listing the proposed use of the funds. School
9districts shall submit the statement to the voters no later
10than sixty days prior to the expiration of any existing revenue
11purpose statement or change in use not included in the existing
12revenue purpose statement.
13(2) (a) Notwithstanding any provision of law to the
14contrary, for each school district with an existing revenue
15purpose statement for the use of revenues from the secure an
16advanced vision for education fund adopted under this paragraph
17or adopted under another provision of law before July 1,
182019, such revenue purpose statement shall terminate and be
19of no further force and effect on January 1, 2031, or the
20expiration date of the revenue purpose statement, whichever is
21earlier. If such a school district intends to use funds for
22purposes other than those listed in paragraph “a” and does not
23intend to operate without a revenue purpose statement on or
24after January 1, 2031, or the expiration date of the revenue
25purpose statement, whichever is earlier, the board of directors
26shall submit a revenue purpose statement for approval by the
27electors under subparagraph (1) on or after July 1, 2019,
28and such revenue purpose statement submitted to the electors
29shall include all proposed uses including those previously
30approved by the electors, if applicable. The following, in
31substantially the following form, shall be included in the
32notice of the election published under paragraph “d” and
33published on the school district’s internet site:
34If a majority of eligible electors voting on the question
35fail to approve this revenue purpose statement, revenues
-7-1received by the school district from the secure an advanced
2vision for education fund shall first be expended for . . . .
3(State the purposes in the order listed in subsection 1 and as
4required by subsection 4 of this section for which the revenues
5received by the school district under this chapter will be
6expended.)
7(b) Unless a new revenue purpose statement is adopted by
8the electors, the existing revenue purpose statement remains
9in effect until January 1, 2031, or the expiration date of the
10revenue purpose statement, whichever is earlier. If a revenue
11purpose statement is terminated under the provisions of this
12subparagraph, such termination shall not affect the validity
13of or a first lien on bonds issued under section 423E.5, Code
142019, or section 423F.5 prior to the date the revenue purpose
15statement is terminated under subparagraph division (a), or
16the validity of a contract or other obligation of the school
17district secured in whole or in part by or requiring the
18payment of funds received under this chapter in effect prior
19to the date the revenue purpose statement is terminated under
20subparagraph division (a).
21 Sec. 13. Section 423F.3, subsection 5, paragraph b, Code
222019, is amended to read as follows:
23b. The infeasibility cost-benefit analysis of remodeling,
24reconstructing, or repairing existing buildings.
25 Sec. 14. Section 423F.3, subsection 5, Code 2019, is amended
26by adding the following new paragraph:
27 NEW PARAGRAPH. i. Benefits and effects of the new
28construction on student learning.
29 Sec. 15. Section 423F.3, subsection 6, Code 2019, is amended
30by adding the following new paragraph:
31 NEW PARAGRAPH. 0d. Additionally, “school infrastructure”
32includes school safety and security infrastructure. For
33purposes of this paragraph, “school safety and security
34infrastructure” includes but is not limited to safe rooms,
35remote entry technology and equipment, security camera systems,
-8-1card access systems, and communication systems with access to
2fire and police emergency frequencies. For purposes of this
3paragraph, “school safety and security infrastructure” does
4not include the cost of personnel, development of safety and
5security plans, or training related to the implementation of
6safety and security plans. It is the intent of the general
7assembly that each school district prioritize the use of
8revenues under this chapter for secure entries for the
9district’s attendance centers before expending such revenues
10for athletic facility infrastructure projects.
11 Sec. 16. Section 423F.3, Code 2019, is amended by adding the
12following new subsection:
13 NEW SUBSECTION. 6A. a. Prior to approving the use
14of revenues received under this chapter for an athletic
15facility infrastructure project within the scope of the
16school district’s approved revenue purpose statement or
17pursuant to subsection 4 for a school district without an
18approved revenue statement, the board of directors shall adopt
19a resolution setting forth the proposal for the athletic
20facility infrastructure project and hold an additional public
21hearing on the issue of construction of the athletic facility.
22Notice of the time and place of the public hearing shall be
23published not less than ten nor more than twenty days before
24the public hearing in a newspaper which is a newspaper of
25general circulation in the school district. If at any time
26prior to the fifteenth day following the hearing, the secretary
27of the board of directors receives a petition containing the
28required number of signatures and asking that the question
29of the approval of the use of revenues for the athletic
30facility infrastructure project be submitted to the voters
31of the school district, the board of directors shall either
32rescind the board’s resolution for the use of revenues for
33the athletic facility infrastructure project or direct the
34county commissioner of elections to submit the question to the
35registered voters of the school district at an election held
-9-1on a date specified in section 39.2, subsection 4, paragraph
2“c”. The petition must be signed by eligible electors equal
3in number to not less than one hundred or thirty percent of
4the number of voters at the last preceding election of school
5officials under section 277.1, whichever is greater. If a
6majority of those voting on the question favors the use of the
7revenues for the athletic facility infrastructure project, the
8board shall be authorized to approve such use by resolution of
9the board. If a majority of those voting on the question does
10not favor the use of the revenues for the athletic facility
11infrastructure project, the board of directors shall rescind
12the board’s resolution for the use of revenues for the athletic
13facility infrastructure project. If a petition is not received
14by the board of directors within the prescribed time period,
15the board of directors may approve the use of revenues for
16the athletic facility infrastructure project without voter
17approval.
18b. After fourteen days from the date of the hearing under
19paragraph “a” or fourteen days after the date of the election
20held under paragraph “a”, if applicable, whichever is later, an
21action shall not be brought questioning the board of directors’
22authority to use funds for the athletic facility infrastructure
23project or questioning the legality of any proceedings in
24connection with the authorization of such use.
25c. For purposes of this subsection:
26(1) “Athletic facility” means a building or structure, or
27portion thereof, that is not physically attached to a student
28attendance center.
29(2) “Athletic facility infrastructure project” means a school
30infrastructure project that includes in whole or in part the
31construction of an athletic facility.
32(3) “Construction” does not include repair or maintenance
33of an existing facility.
34 Sec. 17. Section 423F.4, Code 2019, is amended to read as
35follows:
-10- 1423F.4 Borrowing authority for school districts.
21. A Subject to the conditions established under subsection
32, a school district may anticipate its share of the revenues
4under section 423F.2 by issuing bonds in the manner provided in
5section 423E.5, Code 2019. However, to the extent any school
6district has issued bonds anticipating the proceeds of an
7extended local sales and services tax for school infrastructure
8purposes imposed by a county pursuant to former chapter 423E,
9Code and Code Supplement 2007, prior to July 1, 2008, the
10pledge of such revenues for the payment of principal and
11interest on such bonds shall be replaced by a pledge of its
12share of the revenues under section 423F.2.
132. a. Bonds issued on or after July 1, 2018, shall not be
14sold at public sale as provided in chapter 75, or at a private
15sale, without notice and hearing. Notice of the time and place
16of the public hearing shall be published not less than ten nor
17more than twenty days before the public hearing in a newspaper
18which is a newspaper of general circulation in the school
19district.
20b. For bonds subject to the requirements of paragraph
21“a”, if at any time prior to the fifteenth day following the
22hearing, the secretary of the board of directors receives a
23petition containing the required number of signatures and
24asking that the question of the issuance of such bonds be
25submitted to the voters of the school district, the board shall
26either rescind its adoption of the resolution or direct the
27county commissioner of elections to submit the question to the
28registered voters of the school district at an election held
29on a date specified in section 39.2, subsection 4, paragraph
30“c”. The petition must be signed by eligible electors equal
31in number to not less than one hundred or thirty percent of
32the number of voters at the last preceding election of school
33officials under section 277.1, whichever is greater. If the
34board submits the question at an election and a majority of
35those voting on the question favors issuance of the bonds, the
-11-1board shall be authorized to issue the bonds.
2c. After fourteen days from the date of the hearing under
3paragraph “a” or fourteen days after the date of the election
4held under paragraph “b”, if applicable, whichever is later,
5an action shall not be brought questioning the legality of
6any bonds or the power of the authority to issue any bonds
7or to the legality of any proceedings in connection with the
8authorization or issuance of the bonds.
9 Sec. 18. Section 423F.6, Code 2019, is amended to read as
10follows:
11423F.6 Repeal.
12This chapter is repealed December 31, 2029 January 1, 2051.
13 Sec. 19. STATE MANDATE FUNDING SPECIFIED. In accordance
14with section 25B.2, subsection 3, the state cost of requiring
15compliance with any state mandate included in this Act shall
16be paid by a school district from state school foundation aid
17received by the school district under section 257.16. This
18specification of the payment of the state cost shall be deemed
19to meet all of the state funding-related requirements of
20section 25B.2, subsection 3, and no additional state funding
21shall be necessary for the full implementation of this Act
22by and enforcement of this Act against all affected school
23districts.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27Code section 423.2 imposes a state tax of 6 percent upon
28the sales price of all sales of tangible personal property,
29consisting of goods, wares, merchandise, and other items
30designated by statute, sold at retail in the state to consumers
31or users, except as otherwise provided by Code chapter 423.
32Generally, by operation of law, a sale subject to the sales
33tax is also subject to the use tax. Following the transfer
34of amounts required by statute, if applicable, one-sixth of
35the remaining state sales tax revenue from the 6 percent tax
-12-1is transferred to the secure an advanced vision for education
2(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
3fund are allocated to school districts on a per pupil basis to
4be used for infrastructure and property tax reduction purposes
5specified in Code chapter 423F. Under current law, the sales
6tax rate of 6 percent is reduced to 5 percent on January 1,
72030, and Code chapter 423F, along with other corresponding
8provisions, is repealed December 31, 2029.
9This bill extends the 6 percent sales tax rate, the
10allocation to the SAVE fund, and the statutory repeal of Code
11chapter 423F until January 1, 2051.
12Code section 423F.2 provides that prior to distribution of
13SAVE revenues to school districts, 2.1 percent of the moneys
14available in the SAVE fund are distributed and credited to
15the property tax equity and relief (PTER) fund to be used for
16additional property tax levy aid. The bill provides that for
17each fiscal year beginning on or after July 1, 2019, the equity
18transfer amount, as created in the bill, is distributed and
19credited to the PTER fund and foundation base supplement fund
20in amounts specified in the bill. The bill creates the equity
21transfer percentage, which is used to determine the amount of
22the equity transfer amount, and is equal to the equity transfer
23percentage for the immediately preceding fiscal year, unless
24the amount of money available in the SAVE fund in the fiscal
25year is equal to or exceeds 102 percent of the amount of money
26available in the SAVE fund for the immediately preceding fiscal
27year, in which case the equity transfer percentage shall be the
28equity transfer percentage for the immediately preceding fiscal
29year plus 1 percent. However, the bill caps the percentage at
3012 percent. The equity transfer percentage for the fiscal year
31beginning July 1, 2018, is 2.1 percent. The amount required to
32be transferred from the SAVE fund to the PTER fund is equal to
33the equity transfer amount minus the foundation base transfer
34amount.
35The bill also establishes a foundation base transfer amount
-13-1that equals the equity transfer amount minus the sum of 2.1
2percent of the amount of the moneys available in the SAVE fund
3in the fiscal year plus two-thirds of the product of the equity
4transfer percentage minus 2.1 percent multiplied by the moneys
5available in the SAVE fund in the fiscal year. An amount equal
6to the foundation base transfer amount is credited to the
7foundation base supplement fund to be used by the department of
8management for purposes of making foundation base supplement
9payments to school districts on a per pupil basis calculated
10using each school district’s weighted enrollment and subject to
11specified total foundation base supplement limits in the bill.
12The bill also establishes a career academy transfer amount
13that for the fiscal year beginning July 1, 2019, is $1 million.
14For each fiscal year beginning on or after July 1, 2020, the
15career academy transfer amount is equal to the lesser of $5
16million or the amount of the career academy transfer amount
17for the immediately preceding fiscal year, unless the amount
18of moneys available in the SAVE fund in the fiscal year equals
19or exceeds 102.5 percent of the amount of moneys available in
20the fund for the immediately preceding fiscal year, in which
21case the career academy transfer amount equals the lesser of
22$5 million or the sum of the amount of the career academy
23transfer amount for the immediately preceding fiscal year plus
240.5 percent of the amount of moneys available in the SAVE fund
25in the fiscal year following the deposit of revenues in the
26property tax equity and relief fund and the foundation base
27supplement fund.
28An amount equal to the career academy transfer amount
29is credited to the career academy fund to be used by the
30department of education for purposes of providing competitive
31grants, not to exceed $1 million per grant, to school districts
32for career academy infrastructure, career academy equipment, or
33both, in accordance with the bill and to further the goals of
34the establishment and operation of career academies under Code
35section 258.15.
-14- 1Under the bill, existing revenue purpose statements for the
2use of SAVE fund revenues adopted before July 1, 2019, shall
3terminate and be of no further force and effect on January 1,
42031, or the expiration date of the revenue purpose statement,
5whichever is earlier. If a school district intends to use
6SAVE fund revenues for purposes other than those which can
7be approved by the school board alone and does not intend to
8operate without a revenue purpose statement on or after January
91, 2031, or the expiration of the revenue purpose statement,
10whichever is earlier, the school board must submit a revenue
11purpose statement for approval by the electors on or after
12July 1, 2019, and such revenue purpose statement submitted to
13the electors shall include all proposed uses including those
14previously approved by the electors, if applicable. The bill
15specifies that if a revenue purpose statement is terminated
16under the provisions of the bill, such termination shall
17not affect the validity of or a first lien on bonds issued
18under Code sections 423E.5 and 423F.5 prior to the date of
19termination, or the validity of a contract or other obligation
20of the school district secured in whole or in part by or
21requiring the payment of SAVE revenues in effect prior to the
22date of termination.
23The bill provides that prior to approving the use of SAVE
24revenues for an athletic facility infrastructure project
25that is defined in the bill to mean a school infrastructure
26project that includes in whole or in part, the construction
27of an athletic facility, the board of directors must first
28hold an additional public hearing on the issue of the athletic
29facility. The bill defines “athletic facility” to mean
30a building or structure, or portion thereof, that is not
31physically attached to a student attendance center. If at any
32time prior to the 15th day following the hearing, the secretary
33of the board of directors receives a petition containing the
34required number of signatures and asking that the question of
35the approval of the use of revenues for the athletic facility
-15-1infrastructure project be submitted to the voters of the school
2district, the board of directors shall either rescind the
3resolution for use of SAVE revenues for the athletic facility
4infrastructure project or direct the county commissioner of
5elections to submit the question to the registered voters of
6the school district. If a majority of those voting on the
7question favors the use of the SAVE revenues for the athletic
8facility infrastructure project, the board shall be authorized
9to approve such use by resolution of the board. If a majority
10of those voting on the question does not favor the use of the
11SAVE revenues for the school infrastructure project, the board
12of directors shall rescind the board’s resolution for use of
13SAVE revenues for the athletic facility infrastructure project.
14If a petition is not received by the board of directors
15within the prescribed time period, the board of directors may
16approve the use of SAVE revenues for the athletic facility
17infrastructure project without voter approval. The bill also
18establishes limitations on the period of time to bring an
19action to question the authority to use funds for such purpose
20or the legality of any proceedings in connection with the
21authorization of such use.
22Code section 423F.3 defines “school infrastructure” for
23purposes of the uses for which school districts are permitted
24to expend SAVE revenues. The bill adds “school safety and
25security infrastructure”, as defined in the bill, to the
26definition of “school infrastructure”. The bill specifies
27that it is the intent of the general assembly that each school
28district prioritize the use of SAVE revenues for secure entries
29for the district’s attendance centers before expending such
30revenues for athletic facility infrastructure projects.
31Current law authorizes a school district to anticipate
32its share of SAVE fund revenues by issuing bonds without
33voter approval. The bill provides that revenue bonds issued
34on or after July 1, 2019, shall not be sold at public sale
35or at a private sale without notice and a public hearing.
-16-1Additionally, if at any time prior to the 15th day following
2the hearing, the secretary of the board of directors receives
3a petition containing the required number of signatures and
4asking that the question of the issuance of such bonds be
5submitted to the voters of the school district, the school
6board shall either rescind its adoption of the resolution or
7direct the county commissioner of elections to submit the
8question to the registered voters of the school district. The
9petition must be signed by eligible electors equal in number
10to not less than 100 or 30 percent of the number of voters at
11the last preceding election of school officials, whichever
12is greater. If the school board submits the question at an
13election and a majority of those voting on the question favors
14issuance of the bonds, the board shall be authorized to issue
15the bonds. The bill also places limitations on the period
16of time during which an action questioning the legality or
17procedural compliance for the issuance of such bonds may be
18brought.
19Currently, a school district with a certified enrollment
20of fewer than 250 pupils in the entire district or certified
21enrollment of fewer than 100 pupils in high school must apply
22to the department of education for a certificate of need
23before the school district can expend the supplemental school
24infrastructure amount received for new construction or for
25payments for bonds issued for new construction against the
26supplemental school infrastructure amount. The bill modifies
27the criteria to be used by the department of education in
28determining whether to issue a certificate of need to include
29the cost-benefit analysis of remodeling, reconstructing, or
30repairing existing buildings versus new construction and
31consideration of the benefit of the new construction on student
32learning.
33The bill may include a state mandate as defined in Code
34section 25B.3. The bill requires that the state cost of
35any state mandate included in the bill be paid by a school
-17-1district from state school foundation aid received by the
2school district under Code section 257.16. The specification
3is deemed to constitute state compliance with any state mandate
4funding-related requirements of Code section 25B.2. The
5inclusion of this specification is intended to reinstate the
6requirement of political subdivisions to comply with any state
7mandates included in the bill.
-18-md/jh