Bill Text: IA SF2216 | 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. (See SF 2393.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-03-21 - Fiscal note. [SF2216 Detail]

Download: Iowa-2017-SF2216-Introduced.html

Senate File 2216 - Introduced




                                 SENATE FILE       
                                 BY  DAWSON

                                      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 5167XS (4) 87
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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 This subparagraph (3) is repealed December 31, 2029
  1  6  January 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, 2030 2050.
  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, 2030 2050.
  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  1 22 repealed December 31, 2029 January 1, 2050.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 a an 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 1, paragraph d, Code
  2 21 2018, is amended to read as follows:
  2 22    d.  For any authorized infrastructure purpose of the school
  2 23 district as defined in subsection 6, excluding the construction
  2 24 or purchase of an extracurricular athletic facility.
  2 25    Sec. 7.  Section 423F.3, subsection 3, paragraph b, Code
  2 26 2018, is amended to read as follows:
  2 27    b.  (1)  If the board of directors intends to use funds
  2 28 for purposes other than those listed in paragraph "a", or
  2 29 change the use of funds to purposes other than those listed
  2 30 in paragraph "a", the board shall adopt a revenue purpose
  2 31 statement or amend an existing revenue purpose statement,
  2 32 subject to approval of the electors, listing the proposed use
  2 33 of the funds. School districts shall submit the statement to
  2 34 the voters no later than sixty days prior to the expiration of
  2 35 any existing revenue purpose statement or change in use not
  3  1 included in the existing revenue purpose statement.  If the
  3  2 board of directors intends to use funds for the construction
  3  3 or purchase of an extracurricular athletic facility that is
  3  4 approved by the board on or after July 1, 2018, such use
  3  5 must first be specifically included in the school district's
  3  6 revenue purpose statement, subject to approval of the electors.
  3  7 For purposes of this subparagraph, "extracurricular athletic
  3  8 facility" means a building or structure, or portion thereof,
  3  9 that is not physically attached to a student attendance
  3 10 center and that is primarily used for extracurricular athletic
  3 11 activities or nonschool sponsored activities.  For purposes of
  3 12 this subparagraph, "construction" does not include repair or
  3 13 maintenance of an existing facility.
  3 14    (2)  Notwithstanding any provision of law to the contrary,
  3 15 for each school district with an existing revenue purpose
  3 16 statement for the use of revenues from the secure an advanced
  3 17 vision for education fund adopted under this paragraph or
  3 18 adopted under another provision of law before July 1, 2018,
  3 19 such revenue purpose statement shall terminate and be of no
  3 20 further force and effect on January 1, 2023. If such a school
  3 21 district intends to use funds for purposes other than those
  3 22 listed in paragraph "a" and does not intend to operate without
  3 23 a revenue purpose statement on or after January 1, 2023, the
  3 24 board of directors shall submit a revenue purpose statement for
  3 25 approval by the electors under subparagraph (1) on or after
  3 26 July 1, 2018, and such revenue purpose statement submitted to
  3 27 the electors shall include all proposed uses including those
  3 28 previously approved by the electors, if applicable. If a
  3 29 revenue purpose statement is terminated under the provisions
  3 30 of this subparagraph, such termination shall not affect the
  3 31 validity of or a first lien on bonds issued under section
  3 32 423E.5, Code 2018, or section 423F.5 prior to January 1, 2023.
  3 33    Sec. 8.  Section 423F.3, subsection 5, unnumbered paragraph
  3 34 1, Code 2018, is amended to read as follows:
  3 35    A school district with a certified enrollment of fewer
  4  1 than two three hundred fifty pupils in the entire district or
  4  2 certified enrollment of fewer than one hundred forty pupils
  4  3 in high school shall not expend the amount received for new
  4  4 construction without prior application to the department of
  4  5 education and receipt of a certificate of need pursuant to
  4  6 this subsection. A certificate of need is not required for
  4  7 repairing schoolhouses or buildings, equipment, technology, or
  4  8 transportation equipment for transporting students as provided
  4  9 in section 298.3, or for construction necessary for compliance
  4 10 with the federal Americans With Disabilities Act pursuant to 42
  4 11 U.S.C. {12101 = 12117. In determining whether a certificate of
  4 12 need shall be issued or denied, the department shall consider
  4 13 all of the following:
  4 14    Sec. 9.  Section 423F.3, subsection 5, paragraph b, Code
  4 15 2018, is amended to read as follows:
  4 16    b.  The infeasibility cost=benefit analysis of remodeling,
  4 17 reconstructing, or repairing existing buildings.
  4 18    Sec. 10.  Section 423F.3, subsection 5, Code 2018, is amended
  4 19 by adding the following new paragraph:
  4 20    NEW PARAGRAPH.  i.  Benefits and effects of the new
  4 21 construction on student learning.
  4 22    Sec. 11.  Section 423F.4, Code 2018, is amended to read as
  4 23 follows:
  4 24    423F.4  Borrowing authority for school districts.
  4 25    1.  A Subject to the conditions established under subsection
  4 26 2, a school district may anticipate its share of the revenues
  4 27 under section 423F.2 by issuing bonds in the manner provided in
  4 28 section 423E.5, Code 2018. However, to the extent any school
  4 29 district has issued bonds anticipating the proceeds of an
  4 30 extended local sales and services tax for school infrastructure
  4 31 purposes imposed by a county pursuant to former chapter 423E,
  4 32 Code and Code Supplement 2007, prior to July 1, 2008, the
  4 33 pledge of such revenues for the payment of principal and
  4 34 interest on such bonds shall be replaced by a pledge of its
  4 35 share of the revenues under section 423F.2.
  5  1    2.  a.  Bonds issued on or after July 1, 2018, shall not
  5  2 be sold at public sale as provided in chapter 75, or at a
  5  3 private sale, without notice and hearing as provided in section
  5  4 73A.12 as if the school district were a municipality within the
  5  5 meaning of chapter 73A.
  5  6    b.  For bonds subject to the requirements of paragraph
  5  7 "a", if at any time prior to the fifteenth day following the
  5  8 hearing, the secretary of the board of directors receives a
  5  9 petition containing the required number of signatures and
  5 10 asking that the question of the issuance of such bonds be
  5 11 submitted to the voters of the school district, the board shall
  5 12 either rescind its adoption of the resolution or direct the
  5 13 county commissioner of elections to submit the question to the
  5 14 registered voters of the school district at an election held
  5 15 on a date specified in section 39.2, subsection 4, paragraph
  5 16 "c". The petition must be signed by eligible electors equal in
  5 17 number to not less than one hundred or thirty percent of the
  5 18 number of voters at the last preceding regular school election,
  5 19 whichever is greater. If the board submits the question at an
  5 20 election and a majority of those voting on the question favors
  5 21 issuance of the bonds, the board shall be authorized to issue
  5 22 the bonds.
  5 23    c.  After fourteen days from the date of the hearing under
  5 24 paragraph "a" or fourteen days after the date of the election
  5 25 held under paragraph "b", if applicable, whichever is later,
  5 26 an action shall not be brought questioning the legality of
  5 27 any bonds or the power of the authority to issue any bonds
  5 28 or to the legality of any proceedings in connection with the
  5 29 authorization or issuance of the bonds.
  5 30    Sec. 12.  Section 423F.6, Code 2018, is amended to read as
  5 31 follows:
  5 32    423F.6  Repeal.
  5 33 This chapter is repealed December 31, 2029 January 1, 2050.
  5 34    Sec. 13.  STATE MANDATE FUNDING SPECIFIED.  In accordance
  5 35 with section 25B.2, subsection 3, the state cost of requiring
  6  1 compliance with any state mandate included in this Act shall
  6  2 be paid by a school district from state school foundation aid
  6  3 received by the school district under section 257.16.  This
  6  4 specification of the payment of the state cost shall be deemed
  6  5 to meet all of the state funding=related requirements of
  6  6 section 25B.2, subsection 3, and no additional state funding
  6  7 shall be necessary for the full implementation of this Act
  6  8 by and enforcement of this Act against all affected school
  6  9 districts.
  6 10                           EXPLANATION
  6 11 The inclusion of this explanation does not constitute agreement with
  6 12 the explanation's substance by the members of the general assembly.
  6 13    Code section 423.2 imposes a state tax of 6 percent upon
  6 14 the sales price of all sales of tangible personal property,
  6 15 consisting of goods, wares, merchandise, and other items
  6 16 designated by statute, sold at retail in the state to consumers
  6 17 or users, except as otherwise provided by Code chapter 423.
  6 18 Generally, by operation of law, a sale subject to the sales
  6 19 tax is also subject to the use tax. Following the transfer
  6 20 of amounts required by statute, if applicable, one=sixth of
  6 21 the remaining state sales tax revenue from the 6 percent tax
  6 22 is transferred to the secure an advanced vision for education
  6 23 (SAVE) fund created in Code section 423F.2.  Moneys in the SAVE
  6 24 fund are allocated to school districts on a per pupil basis to
  6 25 be used for infrastructure and property tax reduction purposes
  6 26 specified in Code chapter 423F.  Under current law, the sales
  6 27 tax rate of 6 percent is reduced to 5 percent on January 1,
  6 28 2030, and Code chapter 423F, along with other corresponding
  6 29 provisions, is repealed December 31, 2029.
  6 30    This bill extends the 6 percent sales tax rate, the
  6 31 allocation to the SAVE fund, and the statutory repeal of Code
  6 32 chapter 423F until January 1, 2050.
  6 33    Current law requires that one=sixth of the revenue from the
  6 34 6 percent statewide sales tax be deposited in the SAVE fund
  6 35 for distribution to school districts on a per pupil basis.
  7  1 Code section 423F.2 provides that prior to such distribution,
  7  2 2.1 percent of the moneys available in the SAVE fund are
  7  3 distributed and credited to the property tax equity and relief
  7  4 (PTER) fund to be used for additional property tax levy aid.
  7  5 The bill provides that for each fiscal year beginning on or
  7  6 after July 1, 2018, the percentage used to determine the
  7  7 amount of the transfer from the SAVE fund to the PTER fund is
  7  8 equal to the percentage for the immediately preceding fiscal
  7  9 year, unless the amount of money available in the SAVE fund
  7 10 in the fiscal year is equal to or exceeds 102 percent of the
  7 11 amount of money available in the SAVE fund for the immediately
  7 12 preceding fiscal year, in which case the percentage shall be
  7 13 the percentage for the immediately preceding fiscal year plus 1
  7 14 percent.  However, the bill caps the percentage at 10 percent.
  7 15    Code section 423F.3(1) generally describes the uses for
  7 16 which a school district may use revenues from the SAVE fund
  7 17 if the school district does not have a valid revenue purpose
  7 18 statement.  The bill excludes the construction or purchase of
  7 19 an extracurricular athletic facility, as defined in the bill,
  7 20 approved by the school board on or after July 1, 2018, from
  7 21 that list of authorized uses.  The bill also provides that if
  7 22 a school board intends to use SAVE funds for the construction
  7 23 or purchase of an extracurricular athletic facility that is
  7 24 approved by the board on or after July 1, 2018, such use must
  7 25 first be specifically included in the school district's revenue
  7 26 purpose statement, subject to approval of the electors.
  7 27    Under the bill, revenue purpose statements for the use of
  7 28 SAVE fund revenues adopted before July 1, 2018, shall terminate
  7 29 and be of no further force and effect on January 1, 2023.
  7 30 If a school district intends to use SAVE fund revenues for
  7 31 purposes other than those which can be approved by the school
  7 32 board alone and does not intend to operate without a revenue
  7 33 purpose statement on or after January 1, 2023, the school
  7 34 board must submit a revenue purpose statement for approval
  7 35 by the electors on or after July 1, 2018, and such revenue
  8  1 purpose statement submitted to the electors shall include
  8  2 all proposed uses including those previously approved by the
  8  3 electors, if applicable. The bill specifies that if a revenue
  8  4 purpose statement is terminated on January 1, 2023, under the
  8  5 provisions of the bill, such termination shall not affect the
  8  6 validity of or a first lien on bonds issued under Code sections
  8  7 423E.5 and 423F.5 prior to January 1, 2023.
  8  8    Current law authorizes a school district to anticipate
  8  9 its share of SAVE fund revenues by issuing bonds without
  8 10 voter approval. The bill provides that revenue bonds issued
  8 11 on or after July 1, 2018, shall not be sold at public sale
  8 12 or at a private sale without notice and a public hearing.
  8 13 Additionally, if at any time prior to the 15th day following
  8 14 the hearing, the secretary of the board of directors receives
  8 15 a petition containing the required number of signatures and
  8 16 asking that the question of the issuance of such bonds be
  8 17 submitted to the voters of the school district, the school
  8 18 board shall either rescind its adoption of the resolution or
  8 19 direct the county commissioner of elections to submit the
  8 20 question to the registered voters of the school district. The
  8 21 petition must be signed by eligible electors equal in number to
  8 22 not less than 100 or 30 percent of the number of voters at the
  8 23 last preceding regular school election, whichever is greater.
  8 24 If the school board submits the question at an election and a
  8 25 majority of those voting on the question favors issuance of the
  8 26 bonds, the board shall be authorized to issue the bonds.  The
  8 27 bill also places limitations on the period of time during which
  8 28 an action questioning the legality or procedural compliance for
  8 29 the issuance of such bonds may be brought.
  8 30    Currently, a school district with a certified enrollment
  8 31 of fewer than 250 pupils in the entire district or certified
  8 32 enrollment of fewer than 100 pupils in high school must apply
  8 33 to the department of education for a certificate of need
  8 34 before the school district can expend the supplemental school
  8 35 infrastructure amount received for new construction or for
  9  1 payments for bonds issued for new construction against the
  9  2 supplemental school infrastructure amount. The bill increases
  9  3 the enrollment thresholds to a total enrollment of 350 pupils
  9  4 and to a high school enrollment of 140 pupils.
  9  5    The bill also modifies the criteria to be used by the
  9  6 department of education in determining whether to issue a
  9  7 certificate of need to include the cost=benefit analysis of
  9  8 remodeling, reconstructing, or repairing existing buildings
  9  9 versus new construction and consideration of the benefit of the
  9 10 new construction on student learning.
  9 11    The bill may include a state mandate as defined in Code
  9 12 section 25B.3.  The bill requires that the state cost of
  9 13 any state mandate included in the bill be paid by a school
  9 14 district from state school foundation aid received by the
  9 15 school district under section 257.16.  The specification is
  9 16 deemed to constitute state compliance with any state mandate
  9 17 funding=related requirements of Code section 25B.2.  The
  9 18 inclusion of this specification is intended to reinstate the
  9 19 requirement of political subdivisions to comply with any state
  9 20 mandates included in the bill.
       LSB 5167XS (4) 87
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