H.F. 2278 Section 1. NEW SECTION . 8G.20 Intent —— findings. 1 The general assembly finds that taxpayers should be able to 2 easily access the details on how school districts are spending 3 their tax dollars and other school revenues and the performance 4 results achieved for those expenditures. Therefore, it is the 5 intent of the general assembly to direct the department of 6 management to create and maintain a searchable budget database 7 and internet site detailing where school district tax dollars 8 and other funds are expended, the purposes for which tax 9 dollars and other funds are expended, and the results achieved 10 for all taxpayer investments in school districts. 11 Sec. 2. NEW SECTION . 8G.21 Short title. 12 This subchapter shall be known as and may be cited as the 13 “School District Transparency Act” . 14 Sec. 3. NEW SECTION . 8G.22 Definitions. 15 As used in this subchapter, unless the context otherwise 16 requires: 17 1. “Director” means the director of the department of 18 management. 19 2. a. “Entity” or “recipients” means any of the following: 20 (1) A corporation. 21 (2) An association. 22 (3) An employee union. 23 (4) A limited liability company. 24 (5) A limited liability partnership. 25 (6) Any other legal business entity, including nonprofit 26 entities. 27 (7) A grant recipient. 28 (8) A contractor. 29 (9) A county, city, school district, or other local 30 government entity. 31 b. “Entity” or “recipients” does not include an individual 32 student of the school district. 33 3. “Funding action or expenditure” includes details on the 34 type of spending that is provided including but not limited 35 -1- LSB 5803YH (5) 87 md/jh 1/ 6

H.F. 2278 to expenditures from a fund of the school district, grants, 1 contracts, and appropriations. Where possible, an electronic 2 link to the actual grants or contracts shall be provided. An 3 electronic link shall be in a format that is a searchable 4 document. 5 4. “Funding source” means the state account or fund from 6 which the expenditure is appropriated. “Funding source” does 7 not include federal moneys or grants received by a school 8 district. 9 5. “Searchable internet site” means an internet site 10 that allows the public at no cost to search and compile the 11 information identified in section 8G.23 and that provides such 12 information in a format capable of being downloaded from the 13 site to personal computers. 14 6. “State audit or report” shall include any audit or report 15 issued by the auditor of state, department of management, 16 legislative services agency, legislative committee, or 17 executive body relating to the entity or recipient of school 18 district funds, the program or activity, or the school 19 district. 20 Sec. 4. NEW SECTION . 8G.23 Searchable school district 21 budget database internet site created. 22 1. By January 1, 2020, the director shall develop and make 23 publicly available a database internet site for searching, 24 accessing, and processing data, including the data required 25 in this section, for the most recent school budget year. 26 The internet site shall be developed in such a way that the 27 information can be provided to other software applications, 28 including internet software applications, in a manner and 29 format that allows such software applications to access and 30 interpret the data using the internal programming of the 31 software applications. In gathering or receiving information 32 from school districts, the director shall make a good-faith 33 effort to minimize the costs and disruptions to other school 34 districts and their computer systems of providing such 35 -2- LSB 5803YH (5) 87 md/jh 2/ 6

H.F. 2278 information 1 2. The searchable internet site developed pursuant to this 2 section shall allow the public at no cost to search and compile 3 the information provided pursuant to this subsection. Each 4 school district shall provide the following: 5 a. Name of the entity or recipient of school district funds. 6 b. Amount of school district funds expended. 7 c. Funding or expending school district. 8 d. Funding source. 9 e. Budget program or activity of the expenditure. 10 f. Descriptive purpose for the funding action or 11 expenditure. 12 g. Expected performance outcome for the funding action or 13 expenditure, to the extent that such information is available 14 and can be provided. 15 h. Past performance outcomes achieved for the funding 16 action or expenditure, to the extent that such information is 17 available and can be provided. 18 i. State audit or report relating to the entity or recipient 19 of school district funds or the budget program or activity or 20 agency. 21 j. Any other relevant information specified by the director. 22 Sec. 5. NEW SECTION . 8G.24 Internet site updates. 23 1. Effective July 1, 2020, the internet site shall be 24 updated regularly as new data and information become available, 25 but shall be updated no less frequently than quarterly 26 thereafter as new data becomes available. All school districts 27 shall provide to the director data that is required to be 28 included on the internet site not later than sixty days 29 following the close of each quarter during the school budget 30 year. The director shall provide guidance to school districts 31 to ensure compliance with this section. 32 2. By January 1, 2021, the director shall add data for 33 the previous school budget years to the internet site. Data 34 for previous school budget years may be added as it becomes 35 -3- LSB 5803YH (5) 87 md/jh 3/ 6

H.F. 2278 available and as time permits. The director shall ensure that 1 all data added to the internet site remains accessible to the 2 public for a minimum of ten years. 3 Sec. 6. NEW SECTION . 8G.25 Noncompliance. 4 The director shall not be considered in compliance with this 5 subchapter if the data required for the internet site is not 6 available in a searchable manner and capable of being compiled 7 or if the public is redirected to other government internet 8 sites unless each of those sites displays information from all 9 school districts and each category of information required can 10 be searched electronically by field in a single search. 11 Sec. 7. STATE MANDATE FUNDING SPECIFIED. In accordance 12 with section 25B.2, subsection 3, the state cost of requiring 13 compliance with any state mandate included in this Act shall 14 be paid by a school district from state school foundation aid 15 received by the school district under section 257.16. This 16 specification of the payment of the state cost shall be deemed 17 to meet all of the state funding-related requirements of 18 section 25B.2, subsection 3, and no additional state funding 19 shall be necessary for the full implementation of this Act 20 by and enforcement of this Act against all affected school 21 districts. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill establishes legislative findings that taxpayers 26 should be able to easily access the details on how school 27 districts are spending their tax dollars and other school 28 revenues and the performance results achieved for those 29 expenditures. Additionally, the bill provides that it is the 30 intent of the general assembly to direct the department of 31 management to create and maintain a searchable budget database 32 and internet site detailing where school district tax dollars 33 and other funds are expended, the purposes for which tax 34 dollars and other funds are expended, and the results achieved 35 -4- LSB 5803YH (5) 87 md/jh 4/ 6

H.F. 2278 for all taxpayer investments in school districts. 1 Under the bill, by January 1, 2020, the director of the 2 department of management shall develop and make publicly 3 available a database internet site for searching, accessing, 4 and processing data, including the data required in the bill, 5 for the most recent school budget year. The internet site is 6 required to be developed in such a way that the information can 7 be provided to other software applications, including internet 8 software applications, in a manner and format that allows such 9 software applications to access and interpret the data using 10 the internal programming of the software applications. The 11 searchable internet site developed pursuant to the bill is 12 required to allow the public at no cost to search and compile 13 such information. Each school district shall provide the 14 following to the department of management: (1) the name of the 15 entity or recipient of school district funds; (2) the amount of 16 school district funds expended; (3) the funding or expending 17 school district; (4) the funding source; (5) the budget 18 program or activity of the expenditure; (6) the descriptive 19 purpose for the funding action or expenditure; (7) the expected 20 performance outcome for the funding action or expenditure; (8) 21 the past performance outcomes achieved for the funding action 22 or expenditure; (9) the state audit or report relating to the 23 entity or recipient of school district funds or the budget 24 program or activity or agency; and (10) any other relevant 25 information specified by the director of the department of 26 management. 27 Effective July 1, 2020, the bill requires the internet 28 site to be updated regularly as new data and information 29 become available, but shall be updated no less frequently than 30 quarterly thereafter as new data becomes available. All school 31 districts are required provide to the director data that is 32 required to be included on the internet site not later than 33 60 days following the close of each quarter during the school 34 budget year. The bill requires the director to ensure that all 35 -5- LSB 5803YH (5) 87 md/jh 5/ 6

H.F. 2278 data added to the internet site remain accessible to the public 1 for a minimum of 10 years. The bill also establishes criteria 2 to determine the director of the department of management’s 3 compliance with the bill. 4 The bill may include a state mandate as defined in Code 5 section 25B.3. The bill requires that the state cost of 6 any state mandate included in the bill be paid by a school 7 district from state school foundation aid received by the 8 school district under Code section 257.16. The specification 9 is deemed to constitute state compliance with any state mandate 10 funding-related requirements of Code section 25B.2. The 11 inclusion of this specification is intended to reinstate the 12 requirement of political subdivisions to comply with any state 13 mandates included in the bill. 14 -6- LSB 5803YH (5) 87 md/jh 6/ 6