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Senate File 411

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 7.20, Code 1997, is amended to read as
  1  2 follows:
  1  3    7.20  EXECUTIVE ORDER – USE OF VACANT SCHOOL PROPERTY.
  1  4    The governor shall issue an executive order requiring all
  1  5 state agencies to consider the leasing of a vacant facility or
  1  6 building which is appropriately located and which is owned by
  1  7 a public school corporation before a state agency leases,
  1  8 purchases, or constructs a facility or building.  The state
  1  9 agency may lease a facility or building owned by a public
  1 10 school corporation with an option to purchase the facility or
  1 11 building in compliance with sections section 297.22 to 297.24.
  1 12 The lease shall provide that the public school corporation may
  1 13 terminate the lease if the corporation needs to use the
  1 14 facility or building for school purposes.  The public school
  1 15 corporation shall notify the state agency at least thirty days
  1 16 before the termination of the lease.
  1 17    Sec. 2.  Section 273.3, subsection 21, Code 1997, is
  1 18 amended to read as follows:
  1 19    21.  Be authorized to sell, lease, or dispose of, in whole
  1 20 or in part, property belonging to the area education agency.
  1 21 Before the area education agency may sell property belonging
  1 22 to the agency, the board of directors shall comply with the
  1 23 requirements set forth in sections 297.23 and 297.24 section
  1 24 297.22.  Before the board of directors of an area education
  1 25 agency may lease property belonging to the agency, the board
  1 26 shall obtain the approval of the director of the department of
  1 27 education.
  1 28    Sec. 3.  Section 297.22, Code 1997, is amended to read as
  1 29 follows:
  1 30    297.22  POWER TO SELL, LEASE, OR DISPOSE OF PROPERTY –
  1 31 TAX.
  1 32    1.  The board of directors of a school district may sell,
  1 33 lease, or dispose of, in whole or in part, a schoolhouse,
  1 34 site, or other property belonging to the district.  However,
  1 35 if the appraised value exceeds twenty-five thousand dollars,
  2  1 the board shall hold a public hearing before the board takes
  2  2 final action on the property.
  2  3    Proceeds from the sale or disposition of real property
  2  4 shall be placed in the physical plant and equipment levy fund.
  2  5 Proceeds from the sale or disposition of property other than
  2  6 real property shall be placed in the general fund.  Proceeds
  2  7 from the lease of real or other property shall be placed in
  2  8 the general fund.
  2  9    Before the board of directors may sell, lease, or dispose
  2 10 of any property belonging to the school district it the board
  2 11 shall comply with the requirements set forth in this section
  2 12 and sections 297.15 to through 297.20 and sections 297.23 and
  2 13 297.24.   Any real estate proposed to be sold shall be
  2 14 appraised by three disinterested freeholders residing in the
  2 15 school district and appointed by the chief judge of the
  2 16 judicial district of the county in which said real estate is
  2 17 located from the list of compensation commissioners.
  2 18    Before the board of directors may sell, lease for a period
  2 19 in excess of one year, or dispose of any real property
  2 20 belonging to the school, the board shall hold a public hearing
  2 21 on the proposal.  The board shall set forth its proposal in a
  2 22 resolution and shall publish notice of the time and the place
  2 23 of the public hearing on the resolution.  Notice of the time
  2 24 and place of the public hearing shall be published at least
  2 25 once not less than ten days but not more than twenty days
  2 26 prior to the date of the hearing in a newspaper of general
  2 27 circulation in the district.  After the public hearing, the
  2 28 board may make a final determination on the proposal contained
  2 29 in the resolution.
  2 30    2.  The board of directors of a school district may sell,
  2 31 lease, exchange, give, or grant, and accept any interest in
  2 32 real property to, with, or from a county, municipal
  2 33 corporation, school district, township, or area education
  2 34 agency if the real property is within the jurisdiction of both
  2 35 the grantor and grantee.  In this case sections 297.15 to
  3  1 297.20, sections 297.23 and 297.24, and appraisal requirements
  3  2 of this section do not apply to the transaction.
  3  3    The board of directors of a school district may lease a
  3  4 portion of an existing school building in which the remaining
  3  5 portion of the building will be used for school purposes for a
  3  6 period of not to exceed five years.  The lease may be renewed
  3  7 at the option of the board.  Sections 297.15 to 297.20,
  3  8 sections 297.23 and 297.24, and the appraisal requirements The
  3  9 notice and public hearing requirements of subsection 1 of this
  3 10 section do not apply to the lease of a portion of an existing
  3 11 school building.  A school district shall pay out of the
  3 12 revenue from a lease to the state of Iowa, and to the city,
  3 13 school district and any other political subdivision authorized
  3 14 to levy taxes, an amount as determined by this section.  The
  3 15 amount shall be determined by applying the annual tax rate of
  3 16 the taxing district to the assessed value of the portion of
  3 17 the building leased, prorated for the term of the lease during
  3 18 the appropriate taxing period.  The provisions of this section
  3 19 relating to the payment of property tax because of leases
  3 20 shall only apply to leases to private, for-profit entities
  3 21 which lease a portion of a school building for a period of
  3 22 thirty or more consecutive days.
  3 23    2. 3.  The provisions in subsection 1, relating to the
  3 24 sale, lease, or disposition of school district property do not
  3 25 apply to student-constructed buildings and the property on
  3 26 which student-constructed buildings are located.  The board of
  3 27 directors of a school district may sell, lease, or dispose of
  3 28 a student-constructed building and the property on which the
  3 29 student-constructed building is located, and may purchase
  3 30 sites for the erection of additional structures, by any
  3 31 procedure which is adopted by the board.
  3 32    Sec. 4.  Section 297.25, Code 1997, is amended to read as
  3 33 follows:
  3 34    297.25  RULE OF CONSTRUCTION.
  3 35    Sections Section 297.22 to 297.24 shall be construed as
  4  1 independent of the power vested in the electors by section
  4  2 278.1, and as additional thereto to such power.
  4  3    Sec. 5.  Section 331.361, subsection 7, Code 1997, is
  4  4 amended to read as follows:
  4  5    7.  The board shall not lease, purchase, or construct a
  4  6 facility or building before considering the leasing of a
  4  7 vacant facility or building which is located in the county and
  4  8 owned by a public school corporation.  The board may lease a
  4  9 facility or building owned by the public school corporation
  4 10 with an option to purchase the facility or building in
  4 11 compliance with sections section 297.22 to 297.24.  The lease
  4 12 shall provide that the public school corporation may terminate
  4 13 the lease if the corporation needs to use the facility or
  4 14 building for school purposes.  The public school corporation
  4 15 shall notify the board at least thirty days before the
  4 16 termination of the lease.
  4 17    Sec. 6.  Section 364.21, Code 1997, is amended to read as
  4 18 follows:
  4 19    364.21  USE OF VACANT SCHOOL PROPERTY.
  4 20    A city shall not lease, purchase, or construct a building
  4 21 before considering the leasing of a vacant facility or
  4 22 building owned by a local public school corporation.  The city
  4 23 may lease a facility or building owned by a local public
  4 24 school corporation with an option to purchase the facility or
  4 25 building in compliance with sections section 297.22 to 297.24.
  4 26 The lease shall provide that the public school corporation may
  4 27 terminate the lease if the corporation needs to use the
  4 28 facility or building for school purposes.  The public school
  4 29 corporation shall notify the city at least thirty days before
  4 30 the termination of the lease.
  4 31    Sec. 7.  Sections 297.21, 297.23, and 297.24, Code 1997,
  4 32 are repealed.
  4 33    Sec. 8.  This Act, being deemed of immediate importance,
  4 34 takes effect upon enactment.  
  4 35                           EXPLANATION
  5  1    This bill requires that if the board of directors of a
  5  2 school district or area education agency wishes to sell,
  5  3 lease, or otherwise dispose of property, the board must adopt
  5  4 a resolution and hold a public hearing on the resolution.
  5  5    The bill removes the requirement contained in Code sections
  5  6 297.23 and 297.24 that property be sold through a public bid
  5  7 process.
  5  8    The bill takes effect upon enactment.  
  5  9 LSB 2300SV 77
  5 10 sc/jj/8
     
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