Iowa-2017-SF2216-Introduced
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:
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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 This subparagraph (3) is repealed December 31, 2029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1 22 repealed December 31, 2029 January 1, 2050.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.
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