October 18, 2019 - Introduced by Representatives Wittke, Zimmerman, Kitchens,
Tranel, Ramthun, Oldenburg, Quinn, Kulp, Gruszynski and Novak,
cosponsored by Senators Olsen, Cowles, Darling, Miller and Wanggaard.
Referred to Committee on State Affairs.

AB553,1,4 1An Act to renumber and amend 121.91 (4) (o) 1.; to amend 121.91 (4) (o) 3.
2and 121.91 (4) (o) 4.; and to create 115.28 (4m), 121.91 (4) (o) 1e. and 121.91
3(4) (o) 1h. of the statutes; relating to: the school district revenue limit
4adjustment for energy efficiency projects.

Current law generally limits the total amount of revenue per pupil that a school
district may receive from general school aids and property taxes in a school year to
the amount of revenue allowed per pupil in the previous school year plus a per pupil
increase, if any, as provided by law. However, current law also includes several
adjustments to the general revenue limit. For example, if a school district increases
the services that it provides by adding responsibility for providing a service
transferred to it from another governmental unit, the school district's revenue limit
is increased by the cost of that service.

Current law provides a revenue limit adjustment for the amount a school
district spends on projects to implement energy efficiency measures or to purchase
energy efficiency products if the school board adopted a resolution to do so before
January 1, 2018. This bill makes the following changes to the energy efficiency
revenue limit adjustment:

1. Eliminates the restriction that a school board must have passed a resolution
before January 1, 2018, and makes the energy efficiency revenue limit adjustment
available to a school board that adopts a resolution to use the revenue limit
adjustment on or after date on which the bill becomes law.

2. Changes eligibility requirements for projects that qualify for the revenue
limit adjustment. First, under the bill a qualifying project is a project to purchase
or implement energy conservation measures. The bill incorporates the definition of
“energy conservation measure” that applies to an energy savings performance
contract. Second, the bill changes the eligibility requirement related to the term of
any debt issued to finance the energy efficiency project that is the subject of the
resolution. Under the bill, any debt issued to finance the project may not be for a term
that is longer than 20 years, 80 percent of the useful life of the energy conservation
measures, or 80 percent of the useful life of the facility at which the project is
implemented, whichever is shorter. Under current law, the term of any debt issued
to finance the project may not be more than 20 years. Under both current law and
the bill, a qualifying project must result in energy or operational cost savings and
must be governed by an energy savings performance contract.

3. Requires a resolution to utilize the revenue limit adjustment to include a
statement that the school board has considered and made a good faith effort to
comply with the legal requirements for the revenue limit adjustment.

4. Requires a school board to hold a public hearing on the resolution at least
30 days before voting on the resolution and to provide public notice of the public
hearing at least 10 days before the public hearing. The bill includes a list of specific
items that must be in the agenda for the public hearing.

5. Requires a school board that passes a resolution to submit a report to the
Department of Public Instruction that includes a) the board vote on the resolution,
b) the information required to be in the public hearing agenda, c) information about
projected savings, and d) a statement signed by the school board president and the
school district administrator that states that the school board has considered and
made a good faith effort to comply with the legal requirements for the revenue limit
adjustment. Under the bill, DPI must post the information in these reports on its
Internet site.