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House Study Bill 18 - 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 and prerequisites for the use of tax revenue
5from the secure an advanced vision for education fund, and
6provisions relating to the calculation of the additional
7property tax levy, and making 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-tenths 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-tenths 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-tenths 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.
7 Sec. 16. Section 423F.3, Code 2019, is amended by adding the
8following new subsections:
9 NEW SUBSECTION. 6A. The use of revenues received under
10this chapter on or after July 1, 2019, for an athletic facility
11infrastructure project, as defined in subsection 6B, or for
12costs associated with an athletic facility infrastructure
13project, shall not be authorized until each attendance center
14within the school district is equipped with secured entrance
15and exit door systems to protect against threats to safety and
16security of students and school employees, including but not
17limited to remote locking and entry technology or card access
18systems.
19 NEW SUBSECTION. 6B. a. Prior to approving the use
20of revenues received under this chapter for an athletic
21facility infrastructure project within the scope of the school
22district’s approved revenue purpose statement or pursuant
23to subsection 4 for a school district without an approved
24revenue statement, the board of directors shall certify that
25the school district satisfies the requirements of subsection
266A and shall adopt a resolution setting forth the proposal
27for the athletic facility infrastructure project and hold an
28additional public hearing on the issue of construction of the
29athletic facility. Notice of the time and place of the public
30hearing shall be published not less than ten nor more than
31twenty days before the public hearing in a newspaper which is a
32newspaper of general circulation in the school district. If
33at any time prior to the fifteenth day following the hearing,
34the secretary of the board of directors receives a petition
35containing the required number of signatures and asking that
-9-1the question of the approval of the use of revenues for the
2athletic facility infrastructure project be submitted to the
3voters of the school district, the board of directors shall
4either rescind the board’s resolution for the use of revenues
5for the athletic facility infrastructure project or direct the
6county commissioner of elections to submit the question to the
7registered voters of the school district at an election held
8on a date specified in section 39.2, subsection 4, paragraph
9“c”. The petition must be signed by eligible electors equal
10in number to not less than one hundred or thirty percent of
11the number of voters at the last preceding election of school
12officials under section 277.1, whichever is greater. If a
13majority of those voting on the question favors the use of the
14revenues for the athletic facility infrastructure project, the
15board shall be authorized to approve such use by resolution of
16the board. If a majority of those voting on the question does
17not favor the use of the revenues for the athletic facility
18infrastructure project, the board of directors shall rescind
19the board’s resolution for the use of revenues for the athletic
20facility infrastructure project. If a petition is not received
21by the board of directors within the prescribed time period,
22the board of directors may approve the use of revenues for
23the athletic facility infrastructure project without voter
24approval.
25b. After fourteen days from the date of the hearing under
26paragraph “a” or fourteen days after the date of the election
27held under paragraph “a”, if applicable, whichever is later, an
28action shall not be brought questioning the board of directors’
29authority to use funds for the athletic facility infrastructure
30project or questioning the legality of any proceedings in
31connection with the authorization of such use.
32c. For purposes of this subsection:
33(1) “Athletic facility” means a building or structure, or
34portion thereof, that is not physically attached to a student
35attendance center.
-10- 1(2) “Athletic facility infrastructure project” means a school
2infrastructure project that includes in whole or in part the
3construction of an athletic facility.
4(3) “Construction” does not include repair or maintenance
5of an existing facility.
6 Sec. 17. Section 423F.4, Code 2019, is amended to read as
7follows:
8423F.4 Borrowing authority for school districts.
91. A Subject to the conditions established under subsection
102, a school district may anticipate its share of the revenues
11under section 423F.2 by issuing bonds in the manner provided in
12section 423E.5, Code 2019. However, to the extent any school
13district has issued bonds anticipating the proceeds of an
14extended local sales and services tax for school infrastructure
15purposes imposed by a county pursuant to former chapter 423E,
16Code and Code Supplement 2007, prior to July 1, 2008, the
17pledge of such revenues for the payment of principal and
18interest on such bonds shall be replaced by a pledge of its
19share of the revenues under section 423F.2.
202. a. Bonds issued on or after July 1, 2018, shall not be
21sold at public sale as provided in chapter 75, or at a private
22sale, without notice and hearing. Notice of the time and place
23of the public hearing shall be published not less than ten nor
24more than twenty days before the public hearing in a newspaper
25which is a newspaper of general circulation in the school
26district.
27b. For bonds subject to the requirements of paragraph
28“a”, if at any time prior to the fifteenth day following the
29hearing, the secretary of the board of directors receives a
30petition containing the required number of signatures and
31asking that the question of the issuance of such bonds be
32submitted to the voters of the school district, the board shall
33either rescind its adoption of the resolution or direct the
34county commissioner of elections to submit the question to the
35registered voters of the school district at an election held
-11-1on 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 the
6board submits the question at an election and a majority of
7those voting on the question favors issuance of the bonds, the
8board shall be authorized to issue the bonds.
9c. After fourteen days from the date of the hearing under
10paragraph “a” or fourteen days after the date of the election
11held under paragraph “b”, if applicable, whichever is later,
12an action shall not be brought questioning the legality of
13any bonds or the power of the authority to issue any bonds
14or to the legality of any proceedings in connection with the
15authorization or issuance of the bonds.
16 Sec. 18. Section 423F.6, Code 2019, is amended to read as
17follows:
18423F.6 Repeal.
19This chapter is repealed December 31, 2029 January 1, 2051.
20 Sec. 19. STATE MANDATE FUNDING SPECIFIED. In accordance
21with section 25B.2, subsection 3, the state cost of requiring
22compliance with any state mandate included in this Act shall
23be paid by a school district from state school foundation aid
24received by the school district under section 257.16. This
25specification of the payment of the state cost shall be deemed
26to meet all of the state funding-related requirements of
27section 25B.2, subsection 3, and no additional state funding
28shall be necessary for the full implementation of this Act
29by and enforcement of this Act against all affected school
30districts.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34Code section 423.2 imposes a state tax of 6 percent upon
35the sales price of all sales of tangible personal property,
-12-1consisting of goods, wares, merchandise, and other items
2designated by statute, sold at retail in the state to consumers
3or users, except as otherwise provided by Code chapter 423.
4Generally, by operation of law, a sale subject to the sales
5tax is also subject to the use tax. Following the transfer
6of amounts required by statute, if applicable, one-sixth of
7the remaining state sales tax revenue from the 6 percent tax
8is transferred to the secure an advanced vision for education
9(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
10fund are allocated to school districts on a per pupil basis to
11be used for infrastructure and property tax reduction purposes
12specified in Code chapter 423F. Under current law, the sales
13tax rate of 6 percent is reduced to 5 percent on January 1,
142030, and Code chapter 423F, along with other corresponding
15provisions, is repealed December 31, 2029.
16This bill extends the 6 percent sales tax rate, the
17allocation to the SAVE fund, and the statutory repeal of Code
18chapter 423F until January 1, 2051.
19Code section 423F.2 provides that prior to distribution of
20SAVE revenues to school districts, 2.1 percent of the moneys
21available in the SAVE fund are distributed and credited to
22the property tax equity and relief (PTER) fund to be used for
23additional property tax levy aid. The bill provides that for
24each fiscal year beginning on or after July 1, 2019, the equity
25transfer amount, as created in the bill, is distributed and
26credited to the PTER fund and foundation base supplement fund
27in amounts specified in the bill. The bill creates the equity
28transfer percentage, which is used to determine the amount of
29the equity transfer amount, and is equal to the equity transfer
30percentage for the immediately preceding fiscal year, unless
31the amount of money available in the SAVE fund in the fiscal
32year is equal to or exceeds 102 percent of the amount of money
33available in the SAVE fund for the immediately preceding fiscal
34year, in which case the equity transfer percentage shall be the
35equity transfer percentage for the immediately preceding fiscal
-13-1year plus 1 percent. However, the bill caps the percentage at
212 percent. The equity transfer percentage for the fiscal year
3beginning July 1, 2018, is 2.1 percent. The amount required to
4be transferred from the SAVE fund to the PTER fund is equal to
5the equity transfer amount minus the foundation base transfer
6amount.
7The bill also establishes a foundation base transfer amount
8that equals the equity transfer amount minus the sum of 2.1
9percent of the amount of the moneys available in the SAVE fund
10in the fiscal year plus two-thirds of the product of the equity
11transfer percentage minus 2.1 percent multiplied by the moneys
12available in the SAVE fund in the fiscal year. An amount equal
13to the foundation base transfer amount is credited to the
14foundation base supplement fund to be used by the department of
15management for purposes of making foundation base supplement
16payments to school districts on a per pupil basis calculated
17using each school district’s weighted enrollment and subject to
18specified total foundation base supplement limits in the bill.
19The bill also establishes a career academy transfer amount
20that for the fiscal year beginning July 1, 2019, is $1 million.
21For each fiscal year beginning on or after July 1, 2020, the
22career academy transfer amount is equal to the lesser of $5
23million or the amount of the career academy transfer amount
24for the immediately preceding fiscal year, unless the amount
25of moneys available in the SAVE fund in the fiscal year equals
26or exceeds 102.5 percent of the amount of moneys available in
27the fund for the immediately preceding fiscal year, in which
28case the career academy transfer amount equals the lesser of
29$5 million or the sum of the amount of the career academy
30transfer amount for the immediately preceding fiscal year plus
310.5 percent of the amount of moneys available in the SAVE fund
32in the fiscal year following the deposit of revenues in the
33property tax equity and relief fund and the foundation base
34supplement fund.
35An amount equal to the career academy transfer amount
-14-1is credited to the career academy fund to be used by the
2department of education for purposes of providing competitive
3grants, not to exceed $1 million per grant, to school districts
4for career academy infrastructure, career academy equipment, or
5both, in accordance with the bill and to further the goals of
6the establishment and operation of career academies under Code
7section 258.15.
8Under the bill, existing revenue purpose statements for the
9use of SAVE fund revenues adopted before July 1, 2019, shall
10terminate and be of no further force and effect on January 1,
112031, or the expiration date of the revenue purpose statement,
12whichever is earlier. If a school district intends to use
13SAVE fund revenues for purposes other than those which can
14be approved by the school board alone and does not intend to
15operate without a revenue purpose statement on or after January
161, 2031, or the expiration of the revenue purpose statement,
17whichever is earlier, the school board must submit a revenue
18purpose statement for approval by the electors on or after
19July 1, 2019, and such revenue purpose statement submitted to
20the electors shall include all proposed uses including those
21previously approved by the electors, if applicable. The bill
22specifies that if a revenue purpose statement is terminated
23under the provisions of the bill, such termination shall
24not affect the validity of or a first lien on bonds issued
25under Code sections 423E.5 and 423F.5 prior to the date of
26termination, or the validity of a contract or other obligation
27of the school district secured in whole or in part by or
28requiring the payment of SAVE revenues in effect prior to the
29date of termination.
30The bill prohibits the use of SAVE revenues received on or
31after July 1, 2019, for an athletic facility infrastructure
32project until each attendance center within the school district
33is equipped with secured entrance and exit door systems to
34protect against threats to safety and security of students and
35school employees, including but not limited to remote locking
-15-1and entry technology or card access systems.
2The bill provides that prior to approving the use of SAVE
3revenues for an athletic facility infrastructure project
4that is defined in the bill to mean a school infrastructure
5project that includes in whole or in part, the construction
6of an athletic facility, the board of directors must first
7certify that the school district has met the secured entrance
8requirements in the bill and hold an additional public
9hearing on the issue of the athletic facility. The bill
10defines “athletic facility” to mean a building or structure,
11or portion thereof, that is not physically attached to a
12student attendance center. If at any time prior to the 15th
13day following the hearing, the secretary of the board of
14directors receives a petition containing the required number
15of signatures and asking that the question of the approval of
16the use of revenues for the athletic facility infrastructure
17project be submitted to the voters of the school district, the
18board of directors shall either rescind the resolution for
19use of SAVE revenues for the athletic facility infrastructure
20project or direct the county commissioner of elections to
21submit the question to the registered voters of the school
22district. If a majority of those voting on the question
23favors the use of the SAVE revenues for the athletic facility
24infrastructure project, the board shall be authorized to
25approve such use by resolution of the board. If a majority
26of those voting on the question does not favor the use of the
27SAVE revenues for the school infrastructure project, the board
28of directors shall rescind the board’s resolution for use of
29SAVE revenues for the athletic facility infrastructure project.
30If a petition is not received by the board of directors
31within the prescribed time period, the board of directors may
32approve the use of SAVE revenues for the athletic facility
33infrastructure project without voter approval. The bill also
34establishes limitations on the period of time to bring an
35action to question the authority to use funds for such purpose
-16-1or the legality of any proceedings in connection with the
2authorization of such use.
3Code section 423F.3 defines “school infrastructure” for
4purposes of the uses for which school districts are permitted
5to expend SAVE revenues. The bill adds “school safety and
6security infrastructure”, as defined in the bill, to the
7definition of “school infrastructure”.
8Current law authorizes a school district to anticipate
9its share of SAVE fund revenues by issuing bonds without
10voter approval. The bill provides that revenue bonds issued
11on or after July 1, 2019, shall not be sold at public sale
12or at a private sale without notice and a public hearing.
13Additionally, if at any time prior to the 15th day following
14the hearing, the secretary of the board of directors receives
15a petition containing the required number of signatures and
16asking that the question of the issuance of such bonds be
17submitted to the voters of the school district, the school
18board shall either rescind its adoption of the resolution or
19direct the county commissioner of elections to submit the
20question to the registered voters of the school district. The
21petition must be signed by eligible electors equal in number
22to not less than 100 or 30 percent of the number of voters at
23the last preceding election of school officials, whichever
24is greater. If the school board submits the question at an
25election and a majority of those voting on the question favors
26issuance of the bonds, the board shall be authorized to issue
27the bonds. The bill also places limitations on the period
28of time during which an action questioning the legality or
29procedural compliance for the issuance of such bonds may be
30brought.
31Currently, a school district with a certified enrollment
32of fewer than 250 pupils in the entire district or certified
33enrollment of fewer than 100 pupils in high school must apply
34to the department of education for a certificate of need
35before the school district can expend the supplemental school
-17-1infrastructure amount received for new construction or for
2payments for bonds issued for new construction against the
3supplemental school infrastructure amount. The bill modifies
4the criteria to be used by the department of education in
5determining whether to issue a certificate of need to include
6the cost-benefit analysis of remodeling, reconstructing, or
7repairing existing buildings versus new construction and
8consideration of the benefit of the new construction on student
9learning.
10The bill may include a state mandate as defined in Code
11section 25B.3. The bill requires that the state cost of
12any state mandate included in the bill be paid by a school
13district from state school foundation aid received by the
14school district under Code section 257.16. The specification
15is deemed to constitute state compliance with any state mandate
16funding-related requirements of Code section 25B.2. The
17inclusion of this specification is intended to reinstate the
18requirement of political subdivisions to comply with any state
19mandates 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 and prerequisites for the use of tax revenue
5from the secure an advanced vision for education fund, and
6provisions relating to the calculation of the additional
7property tax levy, and making 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-tenths 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-tenths 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-tenths 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.
7 Sec. 16. Section 423F.3, Code 2019, is amended by adding the
8following new subsections:
9 NEW SUBSECTION. 6A. The use of revenues received under
10this chapter on or after July 1, 2019, for an athletic facility
11infrastructure project, as defined in subsection 6B, or for
12costs associated with an athletic facility infrastructure
13project, shall not be authorized until each attendance center
14within the school district is equipped with secured entrance
15and exit door systems to protect against threats to safety and
16security of students and school employees, including but not
17limited to remote locking and entry technology or card access
18systems.
19 NEW SUBSECTION. 6B. a. Prior to approving the use
20of revenues received under this chapter for an athletic
21facility infrastructure project within the scope of the school
22district’s approved revenue purpose statement or pursuant
23to subsection 4 for a school district without an approved
24revenue statement, the board of directors shall certify that
25the school district satisfies the requirements of subsection
266A and shall adopt a resolution setting forth the proposal
27for the athletic facility infrastructure project and hold an
28additional public hearing on the issue of construction of the
29athletic facility. Notice of the time and place of the public
30hearing shall be published not less than ten nor more than
31twenty days before the public hearing in a newspaper which is a
32newspaper of general circulation in the school district. If
33at any time prior to the fifteenth day following the hearing,
34the secretary of the board of directors receives a petition
35containing the required number of signatures and asking that
-9-1the question of the approval of the use of revenues for the
2athletic facility infrastructure project be submitted to the
3voters of the school district, the board of directors shall
4either rescind the board’s resolution for the use of revenues
5for the athletic facility infrastructure project or direct the
6county commissioner of elections to submit the question to the
7registered voters of the school district at an election held
8on a date specified in section 39.2, subsection 4, paragraph
9“c”. The petition must be signed by eligible electors equal
10in number to not less than one hundred or thirty percent of
11the number of voters at the last preceding election of school
12officials under section 277.1, whichever is greater. If a
13majority of those voting on the question favors the use of the
14revenues for the athletic facility infrastructure project, the
15board shall be authorized to approve such use by resolution of
16the board. If a majority of those voting on the question does
17not favor the use of the revenues for the athletic facility
18infrastructure project, the board of directors shall rescind
19the board’s resolution for the use of revenues for the athletic
20facility infrastructure project. If a petition is not received
21by the board of directors within the prescribed time period,
22the board of directors may approve the use of revenues for
23the athletic facility infrastructure project without voter
24approval.
25b. After fourteen days from the date of the hearing under
26paragraph “a” or fourteen days after the date of the election
27held under paragraph “a”, if applicable, whichever is later, an
28action shall not be brought questioning the board of directors’
29authority to use funds for the athletic facility infrastructure
30project or questioning the legality of any proceedings in
31connection with the authorization of such use.
32c. For purposes of this subsection:
33(1) “Athletic facility” means a building or structure, or
34portion thereof, that is not physically attached to a student
35attendance center.
-10- 1(2) “Athletic facility infrastructure project” means a school
2infrastructure project that includes in whole or in part the
3construction of an athletic facility.
4(3) “Construction” does not include repair or maintenance
5of an existing facility.
6 Sec. 17. Section 423F.4, Code 2019, is amended to read as
7follows:
8423F.4 Borrowing authority for school districts.
91. A Subject to the conditions established under subsection
102, a school district may anticipate its share of the revenues
11under section 423F.2 by issuing bonds in the manner provided in
12section 423E.5, Code 2019. However, to the extent any school
13district has issued bonds anticipating the proceeds of an
14extended local sales and services tax for school infrastructure
15purposes imposed by a county pursuant to former chapter 423E,
16Code and Code Supplement 2007, prior to July 1, 2008, the
17pledge of such revenues for the payment of principal and
18interest on such bonds shall be replaced by a pledge of its
19share of the revenues under section 423F.2.
202. a. Bonds issued on or after July 1, 2018, shall not be
21sold at public sale as provided in chapter 75, or at a private
22sale, without notice and hearing. Notice of the time and place
23of the public hearing shall be published not less than ten nor
24more than twenty days before the public hearing in a newspaper
25which is a newspaper of general circulation in the school
26district.
27b. For bonds subject to the requirements of paragraph
28“a”, if at any time prior to the fifteenth day following the
29hearing, the secretary of the board of directors receives a
30petition containing the required number of signatures and
31asking that the question of the issuance of such bonds be
32submitted to the voters of the school district, the board shall
33either rescind its adoption of the resolution or direct the
34county commissioner of elections to submit the question to the
35registered voters of the school district at an election held
-11-1on 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 the
6board submits the question at an election and a majority of
7those voting on the question favors issuance of the bonds, the
8board shall be authorized to issue the bonds.
9c. After fourteen days from the date of the hearing under
10paragraph “a” or fourteen days after the date of the election
11held under paragraph “b”, if applicable, whichever is later,
12an action shall not be brought questioning the legality of
13any bonds or the power of the authority to issue any bonds
14or to the legality of any proceedings in connection with the
15authorization or issuance of the bonds.
16 Sec. 18. Section 423F.6, Code 2019, is amended to read as
17follows:
18423F.6 Repeal.
19This chapter is repealed December 31, 2029 January 1, 2051.
20 Sec. 19. STATE MANDATE FUNDING SPECIFIED. In accordance
21with section 25B.2, subsection 3, the state cost of requiring
22compliance with any state mandate included in this Act shall
23be paid by a school district from state school foundation aid
24received by the school district under section 257.16. This
25specification of the payment of the state cost shall be deemed
26to meet all of the state funding-related requirements of
27section 25B.2, subsection 3, and no additional state funding
28shall be necessary for the full implementation of this Act
29by and enforcement of this Act against all affected school
30districts.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34Code section 423.2 imposes a state tax of 6 percent upon
35the sales price of all sales of tangible personal property,
-12-1consisting of goods, wares, merchandise, and other items
2designated by statute, sold at retail in the state to consumers
3or users, except as otherwise provided by Code chapter 423.
4Generally, by operation of law, a sale subject to the sales
5tax is also subject to the use tax. Following the transfer
6of amounts required by statute, if applicable, one-sixth of
7the remaining state sales tax revenue from the 6 percent tax
8is transferred to the secure an advanced vision for education
9(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
10fund are allocated to school districts on a per pupil basis to
11be used for infrastructure and property tax reduction purposes
12specified in Code chapter 423F. Under current law, the sales
13tax rate of 6 percent is reduced to 5 percent on January 1,
142030, and Code chapter 423F, along with other corresponding
15provisions, is repealed December 31, 2029.
16This bill extends the 6 percent sales tax rate, the
17allocation to the SAVE fund, and the statutory repeal of Code
18chapter 423F until January 1, 2051.
19Code section 423F.2 provides that prior to distribution of
20SAVE revenues to school districts, 2.1 percent of the moneys
21available in the SAVE fund are distributed and credited to
22the property tax equity and relief (PTER) fund to be used for
23additional property tax levy aid. The bill provides that for
24each fiscal year beginning on or after July 1, 2019, the equity
25transfer amount, as created in the bill, is distributed and
26credited to the PTER fund and foundation base supplement fund
27in amounts specified in the bill. The bill creates the equity
28transfer percentage, which is used to determine the amount of
29the equity transfer amount, and is equal to the equity transfer
30percentage for the immediately preceding fiscal year, unless
31the amount of money available in the SAVE fund in the fiscal
32year is equal to or exceeds 102 percent of the amount of money
33available in the SAVE fund for the immediately preceding fiscal
34year, in which case the equity transfer percentage shall be the
35equity transfer percentage for the immediately preceding fiscal
-13-1year plus 1 percent. However, the bill caps the percentage at
212 percent. The equity transfer percentage for the fiscal year
3beginning July 1, 2018, is 2.1 percent. The amount required to
4be transferred from the SAVE fund to the PTER fund is equal to
5the equity transfer amount minus the foundation base transfer
6amount.
7The bill also establishes a foundation base transfer amount
8that equals the equity transfer amount minus the sum of 2.1
9percent of the amount of the moneys available in the SAVE fund
10in the fiscal year plus two-thirds of the product of the equity
11transfer percentage minus 2.1 percent multiplied by the moneys
12available in the SAVE fund in the fiscal year. An amount equal
13to the foundation base transfer amount is credited to the
14foundation base supplement fund to be used by the department of
15management for purposes of making foundation base supplement
16payments to school districts on a per pupil basis calculated
17using each school district’s weighted enrollment and subject to
18specified total foundation base supplement limits in the bill.
19The bill also establishes a career academy transfer amount
20that for the fiscal year beginning July 1, 2019, is $1 million.
21For each fiscal year beginning on or after July 1, 2020, the
22career academy transfer amount is equal to the lesser of $5
23million or the amount of the career academy transfer amount
24for the immediately preceding fiscal year, unless the amount
25of moneys available in the SAVE fund in the fiscal year equals
26or exceeds 102.5 percent of the amount of moneys available in
27the fund for the immediately preceding fiscal year, in which
28case the career academy transfer amount equals the lesser of
29$5 million or the sum of the amount of the career academy
30transfer amount for the immediately preceding fiscal year plus
310.5 percent of the amount of moneys available in the SAVE fund
32in the fiscal year following the deposit of revenues in the
33property tax equity and relief fund and the foundation base
34supplement fund.
35An amount equal to the career academy transfer amount
-14-1is credited to the career academy fund to be used by the
2department of education for purposes of providing competitive
3grants, not to exceed $1 million per grant, to school districts
4for career academy infrastructure, career academy equipment, or
5both, in accordance with the bill and to further the goals of
6the establishment and operation of career academies under Code
7section 258.15.
8Under the bill, existing revenue purpose statements for the
9use of SAVE fund revenues adopted before July 1, 2019, shall
10terminate and be of no further force and effect on January 1,
112031, or the expiration date of the revenue purpose statement,
12whichever is earlier. If a school district intends to use
13SAVE fund revenues for purposes other than those which can
14be approved by the school board alone and does not intend to
15operate without a revenue purpose statement on or after January
161, 2031, or the expiration of the revenue purpose statement,
17whichever is earlier, the school board must submit a revenue
18purpose statement for approval by the electors on or after
19July 1, 2019, and such revenue purpose statement submitted to
20the electors shall include all proposed uses including those
21previously approved by the electors, if applicable. The bill
22specifies that if a revenue purpose statement is terminated
23under the provisions of the bill, such termination shall
24not affect the validity of or a first lien on bonds issued
25under Code sections 423E.5 and 423F.5 prior to the date of
26termination, or the validity of a contract or other obligation
27of the school district secured in whole or in part by or
28requiring the payment of SAVE revenues in effect prior to the
29date of termination.
30The bill prohibits the use of SAVE revenues received on or
31after July 1, 2019, for an athletic facility infrastructure
32project until each attendance center within the school district
33is equipped with secured entrance and exit door systems to
34protect against threats to safety and security of students and
35school employees, including but not limited to remote locking
-15-1and entry technology or card access systems.
2The bill provides that prior to approving the use of SAVE
3revenues for an athletic facility infrastructure project
4that is defined in the bill to mean a school infrastructure
5project that includes in whole or in part, the construction
6of an athletic facility, the board of directors must first
7certify that the school district has met the secured entrance
8requirements in the bill and hold an additional public
9hearing on the issue of the athletic facility. The bill
10defines “athletic facility” to mean a building or structure,
11or portion thereof, that is not physically attached to a
12student attendance center. If at any time prior to the 15th
13day following the hearing, the secretary of the board of
14directors receives a petition containing the required number
15of signatures and asking that the question of the approval of
16the use of revenues for the athletic facility infrastructure
17project be submitted to the voters of the school district, the
18board of directors shall either rescind the resolution for
19use of SAVE revenues for the athletic facility infrastructure
20project or direct the county commissioner of elections to
21submit the question to the registered voters of the school
22district. If a majority of those voting on the question
23favors the use of the SAVE revenues for the athletic facility
24infrastructure project, the board shall be authorized to
25approve such use by resolution of the board. If a majority
26of those voting on the question does not favor the use of the
27SAVE revenues for the school infrastructure project, the board
28of directors shall rescind the board’s resolution for use of
29SAVE revenues for the athletic facility infrastructure project.
30If a petition is not received by the board of directors
31within the prescribed time period, the board of directors may
32approve the use of SAVE revenues for the athletic facility
33infrastructure project without voter approval. The bill also
34establishes limitations on the period of time to bring an
35action to question the authority to use funds for such purpose
-16-1or the legality of any proceedings in connection with the
2authorization of such use.
3Code section 423F.3 defines “school infrastructure” for
4purposes of the uses for which school districts are permitted
5to expend SAVE revenues. The bill adds “school safety and
6security infrastructure”, as defined in the bill, to the
7definition of “school infrastructure”.
8Current law authorizes a school district to anticipate
9its share of SAVE fund revenues by issuing bonds without
10voter approval. The bill provides that revenue bonds issued
11on or after July 1, 2019, shall not be sold at public sale
12or at a private sale without notice and a public hearing.
13Additionally, if at any time prior to the 15th day following
14the hearing, the secretary of the board of directors receives
15a petition containing the required number of signatures and
16asking that the question of the issuance of such bonds be
17submitted to the voters of the school district, the school
18board shall either rescind its adoption of the resolution or
19direct the county commissioner of elections to submit the
20question to the registered voters of the school district. The
21petition must be signed by eligible electors equal in number
22to not less than 100 or 30 percent of the number of voters at
23the last preceding election of school officials, whichever
24is greater. If the school board submits the question at an
25election and a majority of those voting on the question favors
26issuance of the bonds, the board shall be authorized to issue
27the bonds. The bill also places limitations on the period
28of time during which an action questioning the legality or
29procedural compliance for the issuance of such bonds may be
30brought.
31Currently, a school district with a certified enrollment
32of fewer than 250 pupils in the entire district or certified
33enrollment of fewer than 100 pupils in high school must apply
34to the department of education for a certificate of need
35before the school district can expend the supplemental school
-17-1infrastructure amount received for new construction or for
2payments for bonds issued for new construction against the
3supplemental school infrastructure amount. The bill modifies
4the criteria to be used by the department of education in
5determining whether to issue a certificate of need to include
6the cost-benefit analysis of remodeling, reconstructing, or
7repairing existing buildings versus new construction and
8consideration of the benefit of the new construction on student
9learning.
10The bill may include a state mandate as defined in Code
11section 25B.3. The bill requires that the state cost of
12any state mandate included in the bill be paid by a school
13district from state school foundation aid received by the
14school district under Code section 257.16. The specification
15is deemed to constitute state compliance with any state mandate
16funding-related requirements of Code section 25B.2. The
17inclusion of this specification is intended to reinstate the
18requirement of political subdivisions to comply with any state
19mandates included in the bill.
-18-md/jh