Bill Text: IA HF2438 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the collection of sales tax for deposit in the secure an advanced vision for education fund and to the use of tax revenue from the secure an advanced vision for education fund. (Formerly HSB 647; See HF 2481.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-04-10 - Withdrawn. H.J. 767. [HF2438 Detail]
Download: Iowa-2017-HF2438-Introduced.html
House File 2438 - Introduced HOUSE FILE BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 647) A BILL FOR 1 An Act relating to the collection of sales tax for deposit in 2 the secure an advanced vision for education fund and to the 3 use of tax revenue from the secure an advanced vision for 4 education fund. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5423HV (2) 87 md/jh PAG LIN 1 1 Section 1. Section 423.2, subsection 11, paragraph b, 1 2 subparagraph (3), Code 2018, is amended to read as follows: 1 3 (3) Transfer one=sixth of the remaining revenues to the 1 4 secure an advanced vision for education fund created in section 1 5 423F.2. This subparagraph (3) is repealedDecember 31, 2029 1 6January 1, 2050. 1 7 Sec. 2. Section 423.2, subsection 14, Code 2018, is amended 1 8 to read as follows: 1 9 14. The sales tax rate of six percent is reduced to five 1 10 percent on January 1,20302050. 1 11 Sec. 3. Section 423.5, subsection 5, Code 2018, is amended 1 12 to read as follows: 1 13 5. The use tax rate of six percent is reduced to five 1 14 percent on January 1,20302050. 1 15 Sec. 4. Section 423.43, subsection 1, paragraph b, Code 1 16 2018, is amended to read as follows: 1 17 b. Subsequent to the deposit into the general fund of 1 18 the state and after the transfer of such revenues collected 1 19 under chapter 423B, the department shall transfer one=sixth of 1 20 such remaining revenues to the secure an advanced vision for 1 21 education fund created in section 423F.2. This paragraph is 1 22 repealedDecember 31, 2029January 1, 2050. 1 23 Sec. 5. Section 423F.2, subsection 3, Code 2018, is amended 1 24 to read as follows: 1 25 3. a. The moneys available in a fiscal year in the secure 1 26 an advanced vision for education fund shall be distributed by 1 27 the department of revenue to each school district on a per 1 28 pupil basis calculated using each school district's budget 1 29 enrollment, as defined in section 257.6, for that fiscal year. 1 30 b. (1) Prior to distribution of moneys in the secure an 1 31 advanced vision for education fund to school districts,two and 1 32 one=tenths percent of the moneys available in aan amount equal 1 33 to the equity transfer amount for the fiscal year shall be 1 34 distributed and credited to the property tax equity and relief 1 35 fund created in section 257.16A. 2 1 (2) For purposes of this subsection, the equity transfer 2 2 amount is determined by multiplying the equity transfer 2 3 percentage by the amount of moneys available in the secure an 2 4 advanced vision for education fund in the fiscal year. 2 5 (a) For the fiscal year beginning July 1, 2017, the equity 2 6 transfer percentage is two and one=tenths percent. 2 7 (b) For each fiscal year beginning on or after July 1, 2018, 2 8 the equity transfer percentage is equal to the equity transfer 2 9 percentage for the immediately preceding fiscal year, unless 2 10 the amount of moneys available in the secure an advanced vision 2 11 for education fund in the fiscal year equals or exceeds one 2 12 hundred two percent of the amount of moneys available in the 2 13 fund for the immediately preceding fiscal year, in which case 2 14 the equity transfer percentage shall be the equity transfer 2 15 percentage for the immediately preceding fiscal year plus one 2 16 percent subject to the limitation in subparagraph division (c). 2 17 (c) If the equity transfer percentage calculated under 2 18 subparagraph division (b) exceeds ten percent, the equity 2 19 transfer percentage for that fiscal year shall be ten percent. 2 20 Sec. 6. Section 423F.3, subsection 3, paragraph b, Code 2 21 2018, is amended to read as follows: 2 22 b. (1) If the board of directors intends to use funds for 2 23 purposes other than those listed in paragraph "a", or change the 2 24 use of funds to purposes other than those listed in paragraph 2 25 "a", the board shall adopt a revenue purpose statement or amend 2 26 an existing revenue purpose statement, subject to approval of 2 27 the electors, listing the proposed use of the funds.School 2 28 districts shall submit the statement to the voters no later 2 29 than sixty days prior to the expiration of any existing revenue 2 30 purpose statement or change in use not included in the existing 2 31 revenue purpose statement.2 32 (2) (a) Notwithstanding any provision of law to the 2 33 contrary, for each school district with an existing revenue 2 34 purpose statement for the use of revenues from the secure an 2 35 advanced vision for education fund adopted under this paragraph 3 1 or adopted under another provision of law before July 1, 2018, 3 2 such revenue purpose statement shall terminate and be of no 3 3 further force and effect on January 1, 2023. If such a school 3 4 district intends to use funds for purposes other than those 3 5 listed in paragraph "a" and does not intend to operate without 3 6 a revenue purpose statement on or after January 1, 2023, the 3 7 board of directors shall submit a revenue purpose statement for 3 8 approval by the electors under subparagraph (1) on or after 3 9 July 1, 2018, and such revenue purpose statement submitted 3 10 to the electors shall include all proposed uses including 3 11 those previously approved by the electors, if applicable. A 3 12 revenue purpose statement submitted to the electors under this 3 13 subparagraph shall also include a statement on the ballot, 3 14 which shall be in substantially the following form: 3 15 If a majority of eligible electors voting on the question fail 3 16 to approve this revenue purpose statement, revenues received 3 17 by the school district from the secure an advanced vision 3 18 for education fund shall first be expended for . . . . 3 19 (State the purposes in the order listed in subsection 1 of 3 20 this section for which the revenues received by the school 3 21 district under this chapter will be expended based on the bonds 3 22 outstanding and levies in effect for the school district on the 3 23 date of the election.) 3 24 (b) If a revenue purpose statement is terminated under the 3 25 provisions of this subparagraph, such termination shall not 3 26 affect the validity of or a first lien on bonds issued under 3 27 section 423E.5, Code 2018, or section 423F.5 prior to January 3 28 1, 2023, or the validity of a contract or other obligation of 3 29 the school district secured in whole or in part by or requiring 3 30 the payment of funds received under this chapter in effect 3 31 prior to January 1, 2023. 3 32 Sec. 7. Section 423F.3, subsection 5, unnumbered paragraph 3 33 1, Code 2018, is amended to read as follows: 3 34 A school district with a certified enrollment of fewer 3 35 thantwothree hundred fifty pupils in the entire district or 4 1 certified enrollment of fewer than one hundred forty pupils 4 2 in high school shall not expend the amount received for new 4 3 construction without prior application to the department of 4 4 education and receipt of a certificate of need pursuant to 4 5 this subsection. A certificate of need is not required for 4 6 repairing schoolhouses or buildings, equipment, technology, or 4 7 transportation equipment for transporting students as provided 4 8 in section 298.3, or for construction necessary for compliance 4 9 with the federal Americans With Disabilities Act pursuant to 42 4 10 U.S.C. {12101 = 12117. In determining whether a certificate of 4 11 need shall be issued or denied, the department shall consider 4 12 all of the following: 4 13 Sec. 8. Section 423F.3, subsection 5, paragraph b, Code 4 14 2018, is amended to read as follows: 4 15 b. Theinfeasibilitycost=benefit analysis of remodeling, 4 16 reconstructing, or repairing existing buildings. 4 17 Sec. 9. Section 423F.3, subsection 5, Code 2018, is amended 4 18 by adding the following new paragraph: 4 19 NEW PARAGRAPH. i. Benefits and effects of the new 4 20 construction on student learning. 4 21 Sec. 10. Section 423F.3, Code 2018, is amended by adding the 4 22 following new subsection: 4 23 NEW SUBSECTION. 6A. a. Prior to approving the use 4 24 of revenues received under this chapter for an athletic 4 25 facility infrastructure project within the scope of the 4 26 school district's approved revenue purpose statement or 4 27 pursuant to subsection 4 for a school district without an 4 28 approved revenue statement, the board of directors shall adopt 4 29 a resolution setting forth the proposal for the athletic 4 30 facility infrastructure project and hold an additional public 4 31 hearing on the issue of construction of the athletic facility. 4 32 Notice of the time and place of the public hearing shall be 4 33 published not less than ten nor more than twenty days before 4 34 the public hearing in a newspaper which is a newspaper of 4 35 general circulation in the school district. If at any time 5 1 prior to the fifteenth day following the hearing, the secretary 5 2 of the board of directors receives a petition containing the 5 3 required number of signatures and asking that the question 5 4 of the approval of the use of revenues for the athletic 5 5 facility infrastructure project be submitted to the voters 5 6 of the school district, the board of directors shall either 5 7 rescind the board's resolution for the use of revenues for 5 8 the athletic facility infrastructure project or direct the 5 9 county commissioner of elections to submit the question to the 5 10 registered voters of the school district at an election held 5 11 on a date specified in section 39.2, subsection 4, paragraph 5 12 "c". The petition must be signed by eligible electors equal 5 13 in number to not less than one hundred or thirty percent of 5 14 the number of voters at the last preceding regular school 5 15 election, whichever is greater. If a majority of those 5 16 voting on the question favors the use of the revenues for the 5 17 athletic facility infrastructure project, the board shall be 5 18 authorized to approve such use by resolution of the board. If 5 19 a majority of those voting on the question does not favor the 5 20 use of the revenues for the athletic facility infrastructure 5 21 project, the board of directors shall rescind the board's 5 22 resolution for the use of revenues for the athletic facility 5 23 infrastructure project. If a petition is not received by the 5 24 board of directors within the prescribed time period, the board 5 25 of directors may approve the use of revenues for the athletic 5 26 facility infrastructure project without voter approval. 5 27 b. After fourteen days from the date of the hearing under 5 28 paragraph "a" or fourteen days after the date of the election 5 29 held under paragraph "a", if applicable, whichever is later, an 5 30 action shall not be brought questioning the board of directors' 5 31 authority to use funds for the athletic facility infrastructure 5 32 project or questioning the legality of any proceedings in 5 33 connection with the authorization of such use. 5 34 c. For purposes of this subsection: 5 35 (1) "Athletic facility" means a building or structure, or 6 1 portion thereof, that is not physically attached to a student 6 2 attendance center. 6 3 (2) "Athletic facility infrastructure project" means a school 6 4 infrastructure project that includes in whole or in part the 6 5 construction of an athletic facility. 6 6 (3) "Construction" does not include replacement, upgrade, 6 7 repair, or maintenance of an existing facility. 6 8 Sec. 11. Section 423F.4, Code 2018, is amended to read as 6 9 follows: 6 10 423F.4 Borrowing authority for school districts. 6 11 1.ASubject to the conditions established under subsection 6 12 2, a school district may anticipate its share of the revenues 6 13 under section 423F.2 by issuing bonds in the manner provided in 6 14 section 423E.5, Code 2018. However, to the extent any school 6 15 district has issued bonds anticipating the proceeds of an 6 16 extended local sales and services tax for school infrastructure 6 17 purposes imposed by a county pursuant to former chapter 423E, 6 18 Code and Code Supplement 2007, prior to July 1, 2008, the 6 19 pledge of such revenues for the payment of principal and 6 20 interest on such bonds shall be replaced by a pledge of its 6 21 share of the revenues under section 423F.2. 6 22 2. a. Bonds issued on or after July 1, 2018, shall not be 6 23 sold at public sale as provided in chapter 75, or at a private 6 24 sale, without notice and hearing. Notice of the time and place 6 25 of the public hearing shall be published not less than ten nor 6 26 more than twenty days before the public hearing in a newspaper 6 27 which is a newspaper of general circulation in the school 6 28 district. 6 29 b. For bonds subject to the requirements of paragraph 6 30 "a", if at any time prior to the fifteenth day following the 6 31 hearing, the secretary of the board of directors receives a 6 32 petition containing the required number of signatures and 6 33 asking that the question of the issuance of such bonds be 6 34 submitted to the voters of the school district, the board shall 6 35 either rescind its adoption of the resolution or direct the 7 1 county commissioner of elections to submit the question to the 7 2 registered voters of the school district at an election held 7 3 on a date specified in section 39.2, subsection 4, paragraph 7 4 "c". The petition must be signed by eligible electors equal in 7 5 number to not less than one hundred or thirty percent of the 7 6 number of voters at the last preceding regular school election, 7 7 whichever is greater. If the board submits the question at an 7 8 election and a majority of those voting on the question favors 7 9 issuance of the bonds, the board shall be authorized to issue 7 10 the bonds. 7 11 c. After fourteen days from the date of the hearing under 7 12 paragraph "a" or fourteen days after the date of the election 7 13 held under paragraph "b", if applicable, whichever is later, 7 14 an action shall not be brought questioning the legality of 7 15 any bonds or the power of the authority to issue any bonds 7 16 or to the legality of any proceedings in connection with the 7 17 authorization or issuance of the bonds. 7 18 Sec. 12. Section 423F.6, Code 2018, is amended to read as 7 19 follows: 7 20 423F.6 Repeal. 7 21 This chapter is repealedDecember 31, 2029January 1, 2050. 7 22 Sec. 13. STATE MANDATE FUNDING SPECIFIED. In accordance 7 23 with section 25B.2, subsection 3, the state cost of requiring 7 24 compliance with any state mandate included in this Act shall 7 25 be paid by a school district from state school foundation aid 7 26 received by the school district under section 257.16. This 7 27 specification of the payment of the state cost shall be deemed 7 28 to meet all of the state funding=related requirements of 7 29 section 25B.2, subsection 3, and no additional state funding 7 30 shall be necessary for the full implementation of this Act 7 31 by and enforcement of this Act against all affected school 7 32 districts. 7 33 EXPLANATION 7 34 The inclusion of this explanation does not constitute agreement with 7 35 the explanation's substance by the members of the general assembly. 8 1 Code section 423.2 imposes a state tax of 6 percent upon 8 2 the sales price of all sales of tangible personal property, 8 3 consisting of goods, wares, merchandise, and other items 8 4 designated by statute, sold at retail in the state to consumers 8 5 or users, except as otherwise provided by Code chapter 423. 8 6 Generally, by operation of law, a sale subject to the sales 8 7 tax is also subject to the use tax. Following the transfer 8 8 of amounts required by statute, if applicable, one=sixth of 8 9 the remaining state sales tax revenue from the 6 percent tax 8 10 is transferred to the secure an advanced vision for education 8 11 (SAVE) fund created in Code section 423F.2. Moneys in the SAVE 8 12 fund are allocated to school districts on a per pupil basis to 8 13 be used for infrastructure and property tax reduction purposes 8 14 specified in Code chapter 423F. Under current law, the sales 8 15 tax rate of 6 percent is reduced to 5 percent on January 1, 8 16 2030, and Code chapter 423F, along with other corresponding 8 17 provisions, is repealed December 31, 2029. 8 18 This bill extends the 6 percent sales tax rate, the 8 19 allocation to the SAVE fund, and the statutory repeal of Code 8 20 chapter 423F until January 1, 2050. 8 21 Code section 423F.2 provides that prior to distribution of 8 22 SAVE revenues to school districts, 2.1 percent of the moneys 8 23 available in the SAVE fund are distributed and credited to 8 24 the property tax equity and relief (PTER) fund to be used for 8 25 additional property tax levy aid. The bill provides that 8 26 for each fiscal year beginning on or after July 1, 2018, the 8 27 percentage used to determine the amount of the transfer from 8 28 the SAVE fund to the PTER fund is equal to the percentage for 8 29 the immediately preceding fiscal year, unless the amount of 8 30 money available in the SAVE fund in the fiscal year is equal to 8 31 or exceeds 102 percent of the amount of money available in the 8 32 SAVE fund for the immediately preceding fiscal year, in which 8 33 case the percentage shall be the percentage for the immediately 8 34 preceding fiscal year plus 1 percent. However, the bill caps 8 35 the percentage at 10 percent. 9 1 Under the bill, revenue purpose statements for the use of 9 2 SAVE fund revenues adopted before July 1, 2018, shall terminate 9 3 and be of no further force and effect on January 1, 2023. 9 4 If a school district intends to use SAVE fund revenues for 9 5 purposes other than those which can be approved by the school 9 6 board alone and does not intend to operate without a revenue 9 7 purpose statement on or after January 1, 2023, the school 9 8 board must submit a revenue purpose statement for approval 9 9 by the electors on or after July 1, 2018, and such revenue 9 10 purpose statement submitted to the electors shall include 9 11 all proposed uses including those previously approved by the 9 12 electors, if applicable. The bill specifies that if a revenue 9 13 purpose statement is terminated on January 1, 2023, under the 9 14 provisions of the bill, such termination shall not affect the 9 15 validity of or a first lien on bonds issued under Code sections 9 16 423E.5 and 423F.5 prior to January 1, 2023, or the validity 9 17 of a contract or other obligation of the school district 9 18 secured in whole or in part by or requiring the payment of SAVE 9 19 revenues in effect prior to January 1, 2023. 9 20 The bill provides that prior to approving the use of SAVE 9 21 revenues for an athletic facility infrastructure project 9 22 that is defined in the bill to mean a school infrastructure 9 23 project that includes in whole or in part, the construction 9 24 of an athletic facility, the board of directors must first 9 25 hold an additional public hearing on the issue of the athletic 9 26 facility. The bill defines "athletic facility" to mean 9 27 a building or structure, or portion thereof, that is not 9 28 physically attached to a student attendance center. If at any 9 29 time prior to the 15th day following the hearing, the secretary 9 30 of the board of directors receives a petition containing the 9 31 required number of signatures and asking that the question of 9 32 the approval of the use of revenues for the athletic facility 9 33 infrastructure project be submitted to the voters of the school 9 34 district, the board of directors shall either rescind the 9 35 resolution for use of SAVE revenues for the athletic facility 10 1 infrastructure project or direct the county commissioner of 10 2 elections to submit the question to the registered voters of 10 3 the school district. If a majority of those voting on the 10 4 question favors the use of the SAVE revenues for the athletic 10 5 facility infrastructure project, the board shall be authorized 10 6 to approve such use by resolution of the board. If a majority 10 7 of those voting on the question does not favor the use of the 10 8 SAVE revenues for the school infrastructure project, the board 10 9 of directors shall rescind the board's resolution for use of 10 10 SAVE revenues for the athletic facility infrastructure project. 10 11 If a petition is not received by the board of directors 10 12 within the prescribed time period, the board of directors may 10 13 approve the use of SAVE revenues for the athletic facility 10 14 infrastructure project without voter approval. The bill also 10 15 establishes limitations on the period of time to bring an 10 16 action to question the authority to use funds for such purpose 10 17 or the legality of any proceedings in connection with the 10 18 authorization of such use. 10 19 Current law authorizes a school district to anticipate 10 20 its share of SAVE fund revenues by issuing bonds without 10 21 voter approval. The bill provides that revenue bonds issued 10 22 on or after July 1, 2018, shall not be sold at public sale 10 23 or at a private sale without notice and a public hearing. 10 24 Additionally, if at any time prior to the 15th day following 10 25 the hearing, the secretary of the board of directors receives 10 26 a petition containing the required number of signatures and 10 27 asking that the question of the issuance of such bonds be 10 28 submitted to the voters of the school district, the school 10 29 board shall either rescind its adoption of the resolution or 10 30 direct the county commissioner of elections to submit the 10 31 question to the registered voters of the school district. The 10 32 petition must be signed by eligible electors equal in number to 10 33 not less than 100 or 30 percent of the number of voters at the 10 34 last preceding regular school election, whichever is greater. 10 35 If the school board submits the question at an election and a 11 1 majority of those voting on the question favors issuance of the 11 2 bonds, the board shall be authorized to issue the bonds. The 11 3 bill also places limitations on the period of time during which 11 4 an action questioning the legality or procedural compliance for 11 5 the issuance of such bonds may be brought. 11 6 Currently, a school district with a certified enrollment 11 7 of fewer than 250 pupils in the entire district or certified 11 8 enrollment of fewer than 100 pupils in high school must apply 11 9 to the department of education for a certificate of need 11 10 before the school district can expend the supplemental school 11 11 infrastructure amount received for new construction or for 11 12 payments for bonds issued for new construction against the 11 13 supplemental school infrastructure amount. The bill increases 11 14 the enrollment thresholds to a total enrollment of 350 pupils 11 15 and to a high school enrollment of 140 pupils. 11 16 The bill also modifies the criteria to be used by the 11 17 department of education in determining whether to issue a 11 18 certificate of need to include the cost=benefit analysis of 11 19 remodeling, reconstructing, or repairing existing buildings 11 20 versus new construction and consideration of the benefit of the 11 21 new construction on student learning. 11 22 The bill may include a state mandate as defined in Code 11 23 section 25B.3. The bill requires that the state cost of 11 24 any state mandate included in the bill be paid by a school 11 25 district from state school foundation aid received by the 11 26 school district under section 257.16. The specification is 11 27 deemed to constitute state compliance with any state mandate 11 28 funding=related requirements of Code section 25B.2. The 11 29 inclusion of this specification is intended to reinstate the 11 30 requirement of political subdivisions to comply with any state 11 31 mandates included in the bill. LSB 5423HV (2) 87 md/jh
