HF 2278 (LSB 5803YH (5) 87)

HOUSE FILE 2278

BY  HINSON and R. TAYLOR

A BILL FOR

An Act requiring the department of management to establish and operate a searchable internet site containing revenue and expenditure data of school districts. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  8G.20  Intent —— findings.
   The general assembly finds that taxpayers should be able to easily access the details on how school districts are spending their tax dollars and other school revenues and the performance results achieved for those expenditures. Therefore, it is the intent of the general assembly to direct the department of management to create and maintain a searchable budget database and internet site detailing where school district tax dollars and other funds are expended, the purposes for which tax dollars and other funds are expended, and the results achieved for all taxpayer investments in school districts.
    Sec. 2.  NEW SECTION.  8G.21  Short title.
   This subchapter shall be known as and may be cited as the “School District Transparency Act”.
    Sec. 3.  NEW SECTION.  8G.22  Definitions.
   As used in this subchapter, unless the context otherwise requires:

   1.  “Director” means the director of the department of management.
   2.  a.  “Entity” or “recipients” means any of the following:
   (1)  A corporation.
   (2)  An association.
   (3)  An employee union.
   (4)  A limited liability company.
   (5)  A limited liability partnership.
   (6)  Any other legal business entity, including nonprofit entities.
   (7)  A grant recipient.
   (8)  A contractor.
   (9)  A county, city, school district, or other local government entity.
   b.  “Entity” or “recipients” does not include an individual student of the school district.
   3.  “Funding action or expenditure” includes details on the type of spending that is provided including but not limited to expenditures from a fund of the school district, grants, contracts, and appropriations. Where possible, an electronic link to the actual grants or contracts shall be provided. An electronic link shall be in a format that is a searchable document.
   4.  “Funding source” means the state account or fund from which the expenditure is appropriated. “Funding source” does not include federal moneys or grants received by a school district.
   5.  “Searchable internet site” means an internet site that allows the public at no cost to search and compile the information identified in section 8G.23 and that provides such information in a format capable of being downloaded from the site to personal computers.
   6.  “State audit or report” shall include any audit or report issued by the auditor of state, department of management, legislative services agency, legislative committee, or executive body relating to the entity or recipient of school district funds, the program or activity, or the school district.
    Sec. 4.  NEW SECTION.  8G.23  Searchable school district budget database internet site created.
   1.  By January 1, 2020, the director shall develop and make publicly available a database internet site for searching, accessing, and processing data, including the data required in this section, for the most recent school budget year. The internet site shall be developed in such a way that the information can be provided to other software applications, including internet software applications, in a manner and format that allows such software applications to access and interpret the data using the internal programming of the software applications. In gathering or receiving information from school districts, the director shall make a good-faith effort to minimize the costs and disruptions to other school districts and their computer systems of providing such information
   2.  The searchable internet site developed pursuant to this section shall allow the public at no cost to search and compile the information provided pursuant to this subsection. Each school district shall provide the following:
   a.  Name of the entity or recipient of school district funds.
   b.  Amount of school district funds expended.
   c.  Funding or expending school district.
   d.  Funding source.
   e.  Budget program or activity of the expenditure.
   f.  Descriptive purpose for the funding action or expenditure.
   g.  Expected performance outcome for the funding action or expenditure, to the extent that such information is available and can be provided.
   h.  Past performance outcomes achieved for the funding action or expenditure, to the extent that such information is available and can be provided.
   i.  State audit or report relating to the entity or recipient of school district funds or the budget program or activity or agency.
   j.  Any other relevant information specified by the director.
    Sec. 5.  NEW SECTION.  8G.24  Internet site updates.
   1.  Effective July 1, 2020, the internet site shall be updated regularly as new data and information become available, but shall be updated no less frequently than quarterly thereafter as new data becomes available. All school districts shall provide to the director data that is required to be included on the internet site not later than sixty days following the close of each quarter during the school budget year. The director shall provide guidance to school districts to ensure compliance with this section.
   2.  By January 1, 2021, the director shall add data for the previous school budget years to the internet site. Data for previous school budget years may be added as it becomes available and as time permits. The director shall ensure that all data added to the internet site remains accessible to the public for a minimum of ten years.
    Sec. 6.  NEW SECTION.  8G.25  Noncompliance.
   The director shall not be considered in compliance with this subchapter if the data required for the internet site is not available in a searchable manner and capable of being compiled or if the public is redirected to other government internet sites unless each of those sites displays information from all school districts and each category of information required can be searched electronically by field in a single search.
    Sec. 7.  STATE MANDATE FUNDING SPECIFIED.  In accordance with section 25B.2, subsection 3, the state cost of requiring compliance with any state mandate included in this Act shall be paid by a school district from state school foundation aid received by the school district under section 257.16. This specification of the payment of the state cost shall be deemed to meet all of the state funding-related requirements of section 25B.2, subsection 3, and no additional state funding shall be necessary for the full implementation of this Act by and enforcement of this Act against all affected school districts.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes legislative findings that taxpayers should be able to easily access the details on how school districts are spending their tax dollars and other school revenues and the performance results achieved for those expenditures. Additionally, the bill provides that it is the intent of the general assembly to direct the department of management to create and maintain a searchable budget database and internet site detailing where school district tax dollars and other funds are expended, the purposes for which tax dollars and other funds are expended, and the results achieved for all taxpayer investments in school districts.
   Under the bill, by January 1, 2020, the director of the department of management shall develop and make publicly available a database internet site for searching, accessing, and processing data, including the data required in the bill, for the most recent school budget year. The internet site is required to be developed in such a way that the information can be provided to other software applications, including internet software applications, in a manner and format that allows such software applications to access and interpret the data using the internal programming of the software applications. The searchable internet site developed pursuant to the bill is required to allow the public at no cost to search and compile such information. Each school district shall provide the following to the department of management: (1) the name of the entity or recipient of school district funds; (2) the amount of school district funds expended; (3) the funding or expending school district; (4) the funding source; (5) the budget program or activity of the expenditure; (6) the descriptive purpose for the funding action or expenditure; (7) the expected performance outcome for the funding action or expenditure; (8) the past performance outcomes achieved for the funding action or expenditure; (9) the state audit or report relating to the entity or recipient of school district funds or the budget program or activity or agency; and (10) any other relevant information specified by the director of the department of management.
   Effective July 1, 2020, the bill requires the internet site to be updated regularly as new data and information become available, but shall be updated no less frequently than quarterly thereafter as new data becomes available. All school districts are required provide to the director data that is required to be included on the internet site not later than 60 days following the close of each quarter during the school budget year. The bill requires the director to ensure that all data added to the internet site remain accessible to the public for a minimum of 10 years. The bill also establishes criteria to determine the director of the department of management’s compliance with the bill. 
   The bill may include a state mandate as defined in Code section 25B.3. The bill requires that the state cost of any state mandate included in the bill be paid by a school district from state school foundation aid received by the school district under Code section 257.16. The specification is deemed to constitute state compliance with any state mandate funding-related requirements of Code section 25B.2. The inclusion of this specification is intended to reinstate the requirement of political subdivisions to comply with any state mandates included in the bill.