Senate File 365 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON EDUCATION

                                 (SUCCESSOR TO SF 301)

                                      A BILL FOR

  1 An Act relating to the voter=approved physical plant and
  2    equipment levy by authorizing school districts to exceed
  3    the statutory levy rate limit following the refunding
  4    or refinancing of certain loan agreements and including
  5    effective date provisions.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 298.2, subsection 1, Code 2015, is
  1  2 amended to read as follows:
  1  3    1.  a.  A physical plant and equipment levy of not exceeding
  1  4 one dollar and sixty=seven cents per thousand dollars of
  1  5 assessed valuation in the district is established except as
  1  6 otherwise provided in this subsection. The physical plant
  1  7 and equipment levy consists of the regular physical plant
  1  8 and equipment levy of not exceeding thirty=three cents per
  1  9 thousand dollars of assessed valuation in the district and
  1 10 a voter=approved physical plant and equipment levy of not
  1 11 exceeding one dollar and thirty=four cents per thousand
  1 12 dollars of assessed valuation in the district. However, the
  1 13 voter=approved physical plant and equipment levy may consist
  1 14 of a combination of a physical plant and equipment property
  1 15 tax levy and a physical plant and equipment income surtax as
  1 16 provided in subsection 4 with the maximum amount levied and
  1 17 imposed limited to an amount that could be raised by a one
  1 18 dollar and thirty=four cent property tax levy.
  1 19    b.  For school budget years beginning on or after July 1,
  1 20 2015, a school district may by resolution of the board of
  1 21 directors adopted prior to April 15 preceding the budget year
  1 22 impose a physical plant and equipment levy at a rate in excess
  1 23 of the levy rate limitations under paragraph "a" if the board
  1 24 has refunded or refinanced a loan agreement entered into under
  1 25 section 297.36 and such refunding or refinancing complies with
  1 26 the maturity period authorized under section 297.36, subsection
  1 27 1, paragraph "c", and results in a lower amount of interest on
  1 28 the amount of the loan agreement.  However, the rate imposed
  1 29 by a school district under this paragraph shall not exceed the
  1 30 rate imposed during the budget year in which the loan agreement
  1 31 was refunded or refinanced. Authorization to exceed the levy
  1 32 rate limitations of paragraph "a" shall terminate upon the
  1 33 maturity of the loan agreement after refunding or refinancing.
  1 34 Upon adoption of the resolution under this paragraph "b", the
  1 35 board shall comply with the requirements of section 297.36,
  2  1 subsection 1, paragraph "b".
  2  2    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2  3 immediate importance, takes effect upon enactment.
  2  4                           EXPLANATION
  2  5 The inclusion of this explanation does not constitute agreement with
  2  6 the explanation's substance by the members of the general assembly.
  2  7    Current Code section 298.2 authorizes a physical plant and
  2  8 equipment levy of not exceeding $1.67 per $1,000 of assessed
  2  9 valuation in the district. The physical plant and equipment
  2 10 levy consists of the regular physical plant and equipment levy
  2 11 of not exceeding $0.33 per $1,000 of assessed valuation in the
  2 12 district and a voter=approved physical plant and equipment
  2 13 levy of not exceeding $1.34 per $1,000 of assessed valuation
  2 14 in the district. However, the voter=approved physical plant
  2 15 and equipment levy may consist of a combination of a physical
  2 16 plant and equipment property tax levy and a physical plant and
  2 17 equipment income surtax. In anticipation of revenues received
  2 18 from the physical plant and equipment levy, Code section 297.36
  2 19 authorizes school districts to borrow money and enter into loan
  2 20 agreements.
  2 21    This bill provides that for school budget years beginning
  2 22 on or after July 1, 2015, a school district may by resolution
  2 23 of the board of directors adopted prior to April 15 preceding
  2 24 the budget year impose a physical plant and equipment levy at a
  2 25 rate in excess of the levy rate limitations under Code section
  2 26 298.2 if the board has refunded or refinanced a loan agreement
  2 27 entered into under Code section 297.36 and such refunding or
  2 28 refinancing complies with the maturity period authorized by
  2 29 voters and results in a lower amount of interest on the amount
  2 30 of the loan agreement.  The bill provides, however, that the
  2 31 rate imposed by a school district under the provisions of the
  2 32 bill shall not exceed the rate imposed during the budget year
  2 33 in which the loan agreement was refunded or refinanced. The
  2 34 authorization to exceed the levy rate limitations terminates
  2 35 upon the maturity of the loan agreement after refunding or
  3  1 refinancing.  After adoption of the resolution to exceed the
  3  2 levy rate limits, the bill requires the board of directors
  3  3 to comply with Code section 297.36(1)(b) relating to the
  3  4 certification of amounts to the county auditor.
  3  5    The bill takes effect upon enactment.
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