§ 423F.3 — Use of revenues

Iowa § 423F.3

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 423F: STATEWIDE SCHOOL INFRASTRUCTURE FUNDING

Text

1. A school district receiving revenues from the secure an advanced vision for education
fund under this chapter without a valid revenue purpose statement shall expend the revenues
subject to subsections 2 and 3 for the following purposes:
a. Reduction of bond levies under sections 298.18 and 298.18A and all other debt levies.
b. Reduction of the regular and voter-approved physical plant and equipment levy under
section 298.2.
c. Reduction of the public educational and recreational levy under section 300.2.
d. Foranyauthorizedinfrastructurepurposeoftheschooldistrictasdefinedinsubsection
6.
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e. For the payment of principal and interest on bonds issued under sections 423E.5* and
423F.4.
2. Arevenuepurposestatementinexistencefortheexpenditureoflocalsalesandservices
tax for school infrastructure purposes imposed by a county pursuant to section 423E.2, Code
Supplement 2007, prior to July 1, 2008, shall remain in effect until amended or extended. The
board of directors of a school district may take action to adopt or amend a revenue purpose
statement specifying the specific purposes for which the revenues received from the secure
an advanced vision for education fund will be expended. If a school district is located in a
county which has imposed a local sales and services tax for school infrastructure purposes
prior to July 1, 2008, this action shall be taken before expending or anticipating revenues to
be received after the unextended term of the tax unless the school district elects to adopt a
revenue purpose statement as provided in subsection 3.
3. a. Iftheboardofdirectorsadoptsaresolutiontousefundsreceivedundertheoperation
of this chapter solely for providing property tax relief by reducing indebtedness from the
levies specified under section 298.2 or 298.18, or for radon testing pursuant to section 280.32,
the board of directors may approve a revenue purpose statement for that purpose without
submitting the revenue purpose statement to a vote of the electors.
b. (1) If the board of directors intends to use funds for purposes other than those listed
in paragraph “a”, or change the use of funds to purposes other than those listed in paragraph
“a”, theboardshalladoptarevenuepurposestatementoramendanexistingrevenuepurpose
statement, subject to approval of the electors, listing the proposed use of the funds.
(2) (a) Notwithstanding any provision of law to the contrary, for each school district with
an existing revenue purpose statement for the use of revenues from the secure an advanced
visionforeducationfundadoptedunderthisparagraphoradoptedunderanotherprovisionof
law before July 1, 2019, such revenue purpose statement shall terminate and be of no further
force and effect on January 1, 2031, or the expiration date of the revenue purpose statement,
whicheverisearlier. Ifsuchaschooldistrictintendstousefundsforpurposesotherthanthose
listedinparagraph“a”anddoesnotintendtooperatewithoutarevenuepurposestatementon
or after January 1, 2031, or the expiration date of the revenue purpose statement, whichever
is earlier, the board of directors shall submit a revenue purpose statement for approval by the
electorsundersubparagraph(1)onorafterJuly1, 2019, andsuchrevenuepurposestatement
submitted to the electors shall include all proposed uses including those previously approved
by the electors, if applicable. The following, in substantially the following form, shall be
included in the notice of the election published under paragraph “d” and published on the
school district’s internet site:
If a majority of eligible electors voting on the question fail to
approve this revenue purpose statement, revenues received by the
school district from the secure an advanced vision for education
fund shall first be expended for . . . . (State the purposes in the
order listed in subsection 1 and as required by subsection 4 of this
section for which the revenues received by the school district under
this chapter will be expended.)
(b) Unless a new revenue purpose statement is adopted by the electors, the existing
revenue purpose statement remains in effect until January 1, 2031, or the expiration date
of the revenue purpose statement, whichever is earlier. If a revenue purpose statement is
terminated under the provisions of this subparagraph, such termination shall not affect the
validity of or a first lien on bonds issued under section 423E.5, Code 2019, or section 423F.5
prior to the date the revenue purpose statement is terminated under subparagraph division
(a), or the validity of a contract or other obligation of the school district secured in whole or
in part by or requiring the payment of funds received under this chapter in effect prior to the
date the revenue purpose statement is terminated under subparagraph division (a).
c. The board of directors may use funds received under the operation of this chapter for
a joint infrastructure project with one or more school districts or one or more school districts
and a community college established under chapter 260C, for which buildings or facilities
are constructed or leased for the purpose of offering classes under a district-to-community
§423F.3, STATEWIDE SCHOOL INFRASTRUCTURE FUNDING 4
college sharing agreement or concurrent enrollment program that meets the requirements
for funding under section 257.11, subsection 3. If the board intends to use funds received
under the operation of this chapter for such a joint infrastructure project, the board shall
adopt a revenue purpose statement or amend an existing revenue purpose statement, subject
to approval of the electors, stating the proposed use of the funds.
d. The board secretary shall notify the county commissioner of elections of the intent
to take an issue to the voters pursuant to paragraph “b” or “c”. The county commissioner
of elections shall publish the notices required by law for special or general elections, and
the election shall be held on a date specified in section 39.2, subsection 4, paragraph “c”.
A majority of those voting on the question must favor approval of the revenue purpose
statement. If the proposal is not approved, the school district shall not submit the same or
new revenue purpose statement to the electors for a period of six months from the date of
the previous election.
4. The revenues received pursuant to this chapter shall be expended for the purposes
specifiedintherevenuepurposestatement. Ifaboardofdirectorshasnotapprovedarevenue
purpose statement, the revenues shall be expended in the order listed in subsection 1 except
that the payment of bonds for which the revenues have been pledged shall be paid first.
Once approved, a revenue purpose statement is effective until amended or repealed by the
foregoing procedures. A revenue purpose statement shall not be amended or repealed to
reduce the amount of revenue pledged to the payment of principal and interest on bonds as
long as any bonds authorized by sections 423E.5* and 423F.4 are outstanding unless funds
sufficient to pay principal, interest, and premium, if any, on the outstanding obligations at or
prior to maturity have been properly set aside and pledged for that purpose.
5. A school district with a certified enrollment of fewer than two hundred fifty pupils in
the entire district or certified enrollment of fewer than one hundred pupils in high school
shall not expend the amount received for new construction without prior application to the
department of education and receipt of a certificate of need pursuant to this subsection.
A certificate of need is not required for repairing schoolhouses or buildings, equipment,
technology, or transportation equipment for transporting students as provided in section
298.3, or for construction necessary for compliance with the federal Americans With
Disabilities Act pursuant to 42 U.S.C. §12101 – 12117. In determining whether a certificate
of need shall be issued or denied, the department shall consider all of the following:
a. Enrollment trends in the grades that will be served at the new construction site.
b. Thecost-benefitanalysisofremodeling, reconstructing, orrepairingexistingbuildings.
c. The fire and health safety needs of the school district.
d. The distance, convenience, cost of transportation, and accessibility of the new
construction site to the students to be served at the new construction site.
e. Availability of alternative, less costly, or more effective means of serving the needs of
the students.
f. The financial condition of the district, including the effect of the decline of the budget
guarantee and unspent balance.
g. Broad and long-term ability of the district to support the facility and the quality of the
academic program.
h. Cooperation with other educational entities including other school districts, area
education agencies, postsecondary institutions, and local communities.
i. Benefits and effects of the new construction on student learning.
6. a. (1) For purposes of this chapter, “school infrastructure” means those activities
authorized in section 423E.1, subsection 3, Code 2007.
(2) Additionally,“schoolinfrastructure”includesthepaymentorretirementofoutstanding
bonds previously issued for school infrastructure purposes as defined in this subsection, and
the payment or retirement of bonds issued under sections 423E.5* and 423F.4.
(3) Additionally, “school infrastructure” includes the acquisition or installation of
information technology infrastructure. For purposes of this subparagraph, “information
technology infrastructure” means the basic, underlying physical framework or system
necessary to deliver technology connectivity to a school district and to network school
buildings within a school district.
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(4) Additionally, “schoolinfrastructure”includesschoolsafetyandsecurityinfrastructure.
For purposes of this subparagraph, “school safety and security infrastructure” includes but is
not limited to safe rooms, remote entry technology and equipment, security camera systems,
card access systems, and communication systems with access to fire and police emergency
frequencies. For purposes of this subparagraph, “school safety and security infrastructure”
does not include the cost of personnel, development of safety and security plans, or training
related to the implementation of safety and security plans.
(5) (a) Additionally, “school infrastructure” includes software or other innovative
technology, and the cost of subscription and monitoring fees associated with such software
or other innovative technology, that meets all of the following requirements:
(i) Is designed to detect and alert school district employees and first responders if there
is a visible, unholstered firearm on property owned by the school district.
(ii) Is capable of integrating with local public safety answering point technology.
(iii) Is designed to integrate with a school district’s existing security camera
infrastructure.
(iv) Was developed in the United States without the use of any third-party data or
open-source data.
(v) Was developed in the United States by an organization in which a majority interest
and a controlling interest is owned by shareholders who are citizens of the United States.
(vi) Is not associated with any company that is owned or controlled by the People’s
Republic of China.
(vii) All of the video processing, data processing, and data storage occurs on school
district property or on servers located within the United States that follow data retention
policies that are consistent with rules adopted by the department of homeland security
and emergency management. The department of homeland security and emergency
management shall adopt rules pursuant to chapter 17A to administer this subparagraph
subdivision. The rules adopted by the department of homeland security and emergency
management shall do all of the following:
(A) Establishsecuritystandardsrelatedtothetransmissionandstorageofvideoanddata.
(B) Establish model data retention policies related to the storage of video and data.
(C) Establish a list of organizations that satisfy the standards established by the
departmentofhomelandsecurityandemergencymanagementpursuanttothissubparagraph
subdivision. An organization may submit a request to the department of homeland security
and emergency management to be included on this list.
(viii) Was developed by an organization that is on the list established by the department of
homeland security and emergency management pursuant to subparagraph subdivision (vii),
subparagraph part (C).
(ix) Beginning July 1, 2025, is designated by the secretary of homeland security as
qualified anti-terrorism technology under 6 U.S.C. §441 et seq.
(b) For purposes of this subparagraph, “school infrastructure” does not include the cost
of personnel.
b. It is the intent of the general assembly that each school district prioritize the use of
revenues under this chapter for secure entries for the district’s attendance centers before
expending such revenues for athletic facility infrastructure projects.
c. A school district that uses secure an advanced vision for education fund moneys for
school infrastructure shall comply with the state building code in the absence of a local
building code.
7. a. Prior to approving the use of revenues received under this chapter for an athletic
facility infrastructure project within the scope of the school district’s approved revenue
purpose statement or pursuant to subsection 4 for a school district without an approved
revenue statement, the board of directors shall adopt a resolution setting forth the proposal
for the athletic facility infrastructure project and hold an additional public hearing on the
issue of construction of the athletic facility. Notice of the time and place of the public hearing
shall be published not less than ten nor more than twenty days before the public hearing
in a newspaper which is a newspaper of general circulation in the school district. If at any
time prior to the fifteenth day following the hearing, the secretary of the board of directors
§423F.3, STATEWIDE SCHOOL INFRASTRUCTURE FUNDING 6
receives a petition containing the required number of signatures and asking that the question
of the approval of the use of revenues for the athletic facility infrastructure project be
submitted to the voters of the school district, the board of directors shall either rescind the
board’s resolution for the use of revenues for the athletic facility infrastructure project or
direct the county commissioner of elections to submit the question to the registered voters
of the school district at an election held on a date specified in section 39.2, subsection 4,
paragraph “c”. The petition must be signed by eligible electors equal in number to not less
than one hundred or thirty percent of the number of voters at the last preceding election of
school officials under section 277.1, whichever is greater. If a majority of those voting on
the question favors the use of the revenues for the athletic facility infrastructure project, the
board shall be authorized to approve such use by resolution of the board. If a majority of
those voting on the question does not favor the use of the revenues for the athletic facility
infrastructure project, the board of directors shall rescind the board’s resolution for the use
of revenues for the athletic facility infrastructure project. If a petition is not received by the
board of directors within the prescribed time period, the board of directors may approve the
use of revenues for the athletic facility infrastructure project without voter approval.
b. After fourteen days from the date of the hearing under paragraph “a” or fourteen days
after the date of the election held under paragraph “a”, if applicable, whichever is later, an
action shall not be brought questioning the board of directors’ authority to use funds for
the athletic facility infrastructure project or questioning the legality of any proceedings in
connection with the authorization of such use.
c. For purposes of this subsection:
(1) “Athletic facility” means a building or structure, or portion thereof, that is not
physically attached to a student attendance center.
(2) “Athletic facility infrastructure project” means a school infrastructure project that
includes in whole or in part the construction of an athletic facility.
(3) “Construction” does not include repair or maintenance of an existing facility.
8. The general assembly shall not alter the purposes for which the revenues received
under this section may be used from infrastructure and property tax relief purposes to any
other purpose unless the bill is approved by a vote of at least two-thirds of the members of
both chambers of the general assembly and is signed by the governor.