Bill Text: IA HF447 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the implementation and financing of energy management improvements by school corporations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-03 - Subcommittee recommends passage. [HF447 Detail]
Download: Iowa-2017-HF447-Introduced.html
House File 447 - Introduced HOUSE FILE BY CARLIN A BILL FOR 1 An Act relating to the implementation and financing of energy 2 management improvements by school corporations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2547YH (2) 87 gh/rn/nh PAG LIN 1 1 Section 1. Section 273.3, Code 2017, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 20A. Be authorized to implement an energy 1 4 management improvement as provided in section 279.48A. 1 5 Sec. 2. Section 279.48, subsection 2, Code 2017, is amended 1 6 to read as follows: 1 7 2. The total of scheduled annual payments of principal or 1 8 interest due and payable from current budgeted receipts or 1 9 future budgeted receipts with respect to all loan agreements 1 10 authorized under this section, section 279.48A, or section 1 11 285.10, subsection 7, paragraph "b", must not exceed ten percent 1 12 of the last authorized budget of the school corporation. 1 13 Sec. 3. NEW SECTION. 279.48A Energy management improvements 1 14 == implementation. 1 15 1. The board of directors of a school corporation may 1 16 implement an energy management improvement, as defined in 1 17 section 473.19 and identified in an energy analysis, and may 1 18 negotiate and enter into a loan agreement and issue a note 1 19 to pay for the energy management improvement, subject to the 1 20 following terms and procedures: 1 21 a. The note must mature within ten years, or the useful life 1 22 of the energy management improvement, whichever is less. 1 23 b. The note may bear interest at a rate to be determined by 1 24 the board of directors in the manner provided in section 74A.3, 1 25 subsection 1, paragraph "a". Chapter 75 is not applicable. 1 26 c. The board of directors shall provide for the form of the 1 27 agreement and note. 1 28 d. Principal and interest on the note must be payable from 1 29 budgeted receipts in the debt service fund for each year of a 1 30 period of up to ten years. 1 31 2. The total of scheduled annual payments of principal or 1 32 interest due and payable from current budgeted receipts or 1 33 future budgeted receipts with respect to all loan agreements 1 34 authorized under this section, section 279.48, or section 1 35 285.10, subsection 7, paragraph "b", must not exceed ten percent 2 1 of the last authorized budget of the school corporation. 2 2 3. Before entering into a loan agreement for an energy 2 3 management improvement, the school corporation must publish a 2 4 notice, including a statement of the amount and purpose of the 2 5 agreement, at least once in a newspaper of general circulation 2 6 within the school corporation at least ten days before the 2 7 meeting at which the loan agreement is to be approved. 2 8 4. This section shall not preclude a school corporation 2 9 from obtaining a loan, lease, or other method of alternative 2 10 financing under the energy loan program created in section 2 11 479.19 to implement energy management improvements or energy 2 12 analyses in addition to entering into a loan agreement as 2 13 provided in this section. 2 14 Sec. 4. Section 279.53, Code 2017, is amended to read as 2 15 follows: 2 16 279.53 Loan proceeds. 2 17 The proceeds of loans issued to school districts pursuant to 2 18 section 279.48, 279.48A, 279.52, or 473.20 shall be deposited 2 19 into either the general fund of a school district or the 2 20 physical plant and equipment levy fund. The board of directors 2 21 shall expend the amount of the principal and interest due 2 22 each year to maturity from the same fund into which the loan 2 23 proceeds were deposited. 2 24 EXPLANATION 2 25 The inclusion of this explanation does not constitute agreement with 2 26 the explanation's substance by the members of the general assembly. 2 27 This bill provides that a board of directors of a school 2 28 corporation may negotiate and enter into a loan agreement and 2 29 issue a note to pay for an energy management improvement, as 2 30 defined in Code section 473.19. A note must meet the following 2 31 requirements: the note must mature within the lesser of 10 2 32 years or the useful life of the energy management improvement; 2 33 the note may bear interest at a rate determined by the board 2 34 pursuant to Code section 74A.3(1)(a); the board must provide 2 35 for the form of the agreement and note; and the principal and 3 1 interest on the note must be payable from budgeted receipts in 3 2 the debt service fund for each year of a period of up to 10 3 3 years. Code chapter 75, relating to the authorization and sale 3 4 of public bonds, does not apply to such a note. 3 5 The bill provides that the total annual payments of 3 6 principal or interest due and payable from current or future 3 7 budgeted receipts with respect to all loan agreements entered 3 8 into under the bill, Code section 279.48 (equipment) or 3 9 285.10(7)(b) (buses) cannot exceed 10 percent of the last 3 10 authorized budget of the school corporation. 3 11 The bill requires a school corporation to publish a notice 3 12 before entering into a loan agreement, including the amount 3 13 and purpose of such agreement, at least once in a newspaper 3 14 of general circulation within the school corporation at least 3 15 10 days before the meeting at which the agreement is to be 3 16 approved. 3 17 The bill does not preclude a school corporation from 3 18 obtaining financing under the energy loan program established 3 19 in Code section 479.19 to implement energy management 3 20 improvements. 3 21 The bill requires the proceeds of loans issued to school 3 22 districts pursuant to the bill to be deposited into either 3 23 the school district's general fund or the physical plant and 3 24 equipment levy fund. 3 25 The bill makes conforming changes in Code sections 273.3 and 3 26 279.48(2). The bill's provisions are in substantial conformity 3 27 with equipment purchase loan provisions contained in current 3 28 Code section 279.48. LSB 2547YH (2) 87 gh/rn/nh
