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House File 447 - IntroducedA Bill ForAn Act 1relating to the implementation and financing of energy
2management improvements by school corporations.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 273.3, Code 2017, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 20A. Be authorized to implement an energy
4management improvement as provided in section 279.48A.
5 Sec. 2. Section 279.48, subsection 2, Code 2017, is amended
6to read as follows:
72. The total of scheduled annual payments of principal or
8interest due and payable from current budgeted receipts or
9future budgeted receipts with respect to all loan agreements
10authorized under this section, section 279.48A, or section
11285.10, subsection 7, paragraph “b”, must not exceed ten percent
12of the last authorized budget of the school corporation.
13 Sec. 3. NEW SECTION. 279.48A Energy management improvements
14— implementation.
151. The board of directors of a school corporation may
16implement an energy management improvement, as defined in
17section 473.19 and identified in an energy analysis, and may
18negotiate and enter into a loan agreement and issue a note
19to pay for the energy management improvement, subject to the
20following terms and procedures:
21a. The note must mature within ten years, or the useful life
22of the energy management improvement, whichever is less.
23b. The note may bear interest at a rate to be determined by
24the board of directors in the manner provided in section 74A.3,
25subsection 1, paragraph “a”. Chapter 75 is not applicable.
26c. The board of directors shall provide for the form of the
27agreement and note.
28d. Principal and interest on the note must be payable from
29budgeted receipts in the debt service fund for each year of a
30period of up to ten years.
312. The total of scheduled annual payments of principal or
32interest due and payable from current budgeted receipts or
33future budgeted receipts with respect to all loan agreements
34authorized under this section, section 279.48, or section
35285.10, subsection 7, paragraph “b”, must not exceed ten percent
-1-1of the last authorized budget of the school corporation.
23. Before entering into a loan agreement for an energy
3management improvement, the school corporation must publish a
4notice, including a statement of the amount and purpose of the
5agreement, at least once in a newspaper of general circulation
6within the school corporation at least ten days before the
7meeting at which the loan agreement is to be approved.
84. This section shall not preclude a school corporation
9from obtaining a loan, lease, or other method of alternative
10financing under the energy loan program created in section
11479.19 to implement energy management improvements or energy
12analyses in addition to entering into a loan agreement as
13provided in this section.
14 Sec. 4. Section 279.53, Code 2017, is amended to read as
15follows:
16279.53 Loan proceeds.
17The proceeds of loans issued to school districts pursuant to
18section 279.48, 279.48A, 279.52, or 473.20 shall be deposited
19into either the general fund of a school district or the
20physical plant and equipment levy fund. The board of directors
21shall expend the amount of the principal and interest due
22each year to maturity from the same fund into which the loan
23proceeds were deposited.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill provides that a board of directors of a school
28corporation may negotiate and enter into a loan agreement and
29issue a note to pay for an energy management improvement, as
30defined in Code section 473.19. A note must meet the following
31requirements: the note must mature within the lesser of 10
32years or the useful life of the energy management improvement;
33the note may bear interest at a rate determined by the board
34pursuant to Code section 74A.3(1)(a); the board must provide
35for the form of the agreement and note; and the principal and
-2-1interest on the note must be payable from budgeted receipts in
2the debt service fund for each year of a period of up to 10
3years. Code chapter 75, relating to the authorization and sale
4of public bonds, does not apply to such a note.
5The bill provides that the total annual payments of
6principal or interest due and payable from current or future
7budgeted receipts with respect to all loan agreements entered
8into under the bill, Code section 279.48 (equipment) or
9285.10(7)(b) (buses) cannot exceed 10 percent of the last
10authorized budget of the school corporation.
11The bill requires a school corporation to publish a notice
12before entering into a loan agreement, including the amount
13and purpose of such agreement, at least once in a newspaper
14of general circulation within the school corporation at least
1510 days before the meeting at which the agreement is to be
16approved.
17The bill does not preclude a school corporation from
18obtaining financing under the energy loan program established
19in Code section 479.19 to implement energy management
20improvements.
21The bill requires the proceeds of loans issued to school
22districts pursuant to the bill to be deposited into either
23the school district’s general fund or the physical plant and
24equipment levy fund.
25The bill makes conforming changes in Code sections 273.3 and
26279.48(2). The bill’s provisions are in substantial conformity
27with equipment purchase loan provisions contained in current
28Code section 279.48.
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2management improvements by school corporations.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 273.3, Code 2017, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 20A. Be authorized to implement an energy
4management improvement as provided in section 279.48A.
5 Sec. 2. Section 279.48, subsection 2, Code 2017, is amended
6to read as follows:
72. The total of scheduled annual payments of principal or
8interest due and payable from current budgeted receipts or
9future budgeted receipts with respect to all loan agreements
10authorized under this section, section 279.48A, or section
11285.10, subsection 7, paragraph “b”, must not exceed ten percent
12of the last authorized budget of the school corporation.
13 Sec. 3. NEW SECTION. 279.48A Energy management improvements
14— implementation.
151. The board of directors of a school corporation may
16implement an energy management improvement, as defined in
17section 473.19 and identified in an energy analysis, and may
18negotiate and enter into a loan agreement and issue a note
19to pay for the energy management improvement, subject to the
20following terms and procedures:
21a. The note must mature within ten years, or the useful life
22of the energy management improvement, whichever is less.
23b. The note may bear interest at a rate to be determined by
24the board of directors in the manner provided in section 74A.3,
25subsection 1, paragraph “a”. Chapter 75 is not applicable.
26c. The board of directors shall provide for the form of the
27agreement and note.
28d. Principal and interest on the note must be payable from
29budgeted receipts in the debt service fund for each year of a
30period of up to ten years.
312. The total of scheduled annual payments of principal or
32interest due and payable from current budgeted receipts or
33future budgeted receipts with respect to all loan agreements
34authorized under this section, section 279.48, or section
35285.10, subsection 7, paragraph “b”, must not exceed ten percent
-1-1of the last authorized budget of the school corporation.
23. Before entering into a loan agreement for an energy
3management improvement, the school corporation must publish a
4notice, including a statement of the amount and purpose of the
5agreement, at least once in a newspaper of general circulation
6within the school corporation at least ten days before the
7meeting at which the loan agreement is to be approved.
84. This section shall not preclude a school corporation
9from obtaining a loan, lease, or other method of alternative
10financing under the energy loan program created in section
11479.19 to implement energy management improvements or energy
12analyses in addition to entering into a loan agreement as
13provided in this section.
14 Sec. 4. Section 279.53, Code 2017, is amended to read as
15follows:
16279.53 Loan proceeds.
17The proceeds of loans issued to school districts pursuant to
18section 279.48, 279.48A, 279.52, or 473.20 shall be deposited
19into either the general fund of a school district or the
20physical plant and equipment levy fund. The board of directors
21shall expend the amount of the principal and interest due
22each year to maturity from the same fund into which the loan
23proceeds were deposited.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill provides that a board of directors of a school
28corporation may negotiate and enter into a loan agreement and
29issue a note to pay for an energy management improvement, as
30defined in Code section 473.19. A note must meet the following
31requirements: the note must mature within the lesser of 10
32years or the useful life of the energy management improvement;
33the note may bear interest at a rate determined by the board
34pursuant to Code section 74A.3(1)(a); the board must provide
35for the form of the agreement and note; and the principal and
-2-1interest on the note must be payable from budgeted receipts in
2the debt service fund for each year of a period of up to 10
3years. Code chapter 75, relating to the authorization and sale
4of public bonds, does not apply to such a note.
5The bill provides that the total annual payments of
6principal or interest due and payable from current or future
7budgeted receipts with respect to all loan agreements entered
8into under the bill, Code section 279.48 (equipment) or
9285.10(7)(b) (buses) cannot exceed 10 percent of the last
10authorized budget of the school corporation.
11The bill requires a school corporation to publish a notice
12before entering into a loan agreement, including the amount
13and purpose of such agreement, at least once in a newspaper
14of general circulation within the school corporation at least
1510 days before the meeting at which the agreement is to be
16approved.
17The bill does not preclude a school corporation from
18obtaining financing under the energy loan program established
19in Code section 479.19 to implement energy management
20improvements.
21The bill requires the proceeds of loans issued to school
22districts pursuant to the bill to be deposited into either
23the school district’s general fund or the physical plant and
24equipment levy fund.
25The bill makes conforming changes in Code sections 273.3 and
26279.48(2). The bill’s provisions are in substantial conformity
27with equipment purchase loan provisions contained in current
28Code section 279.48.
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