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Senate File 2338

Partial Bill History

Bill Text

  1  1    Section 1.  NEW SECTION.  256.24  SCHOOL INVESTMENT
  1  3    The department of education shall establish a school
  1  4 investment partnership pilot program to evaluate the
  1  5 effectiveness of private participation in the funding and
  1  6 management of school infrastructure and nonacademic services.
  1  7 The program is intended to shift the responsibility for the
  1  8 operation and financing of school facility construction and
  1  9 maintenance to the private sector, thereby facilitating the
  1 10 focus of public school system resources on enhancing the
  1 11 educational experience of the schoolchildren of Iowa.  The
  1 12 pilot program shall involve six pilot projects, to be
  1 13 conducted as follows:
  1 14    1.  Each project shall pair one or more private investors
  1 15 and one or more school districts in a partnership involving
  1 16 the shared utilization of school facilities.  Private
  1 17 investors shall finance the construction of school facilities,
  1 18 based on school district specifications, and commit to the
  1 19 completion of a fully operational school facility, complete
  1 20 with all classroom furnishings and school facility equipment,
  1 21 by a mutually agreed-upon date.
  1 22    2.  All projects shall, where applicable, conform to the
  1 23 provisions of chapter 73A as if the school facility
  1 24 constructed were a public improvement and as if the private
  1 25 investors financing the school facility construction were a
  1 26 school corporation.
  1 27    3.  The private investor shall lease the facility back to
  1 28 the school district at monthly payment levels below the
  1 29 anticipated cost to the school district had it incurred the
  1 30 school facility construction expenses directly, pursuant to a
  1 31 lease agreement negotiated at the same time that the agreement
  1 32 regarding construction of the school facility is entered into.
  1 33 A lease agreement shall typically extend for a twenty-year
  1 34 duration, with the option to continue the lease at the end of
  1 35 the lease period, and also to permit the purchase of the
  2  1 school facility by the school district at the conclusion of
  2  2 the lease period at an agreed-upon price.  Monthly lease
  2  3 payments shall not exceed the present value of an amount
  2  4 equivalent to eighty-five percent of the anticipated final
  2  5 fair market value of the facility at the conclusion of the
  2  6 initial lease term.
  2  7    4.  The school district shall retain control over all
  2  8 decisions related to the education of students within the
  2  9 school facility, including the determination of when the
  2 10 facility shall and shall not be utilized by the school
  2 11 district, the uses to which the facility shall be put during
  2 12 periods when school is in session, and access to the facility
  2 13 for after-hours athletic practices, extracurricular
  2 14 activities, staff, parent, and teacher meetings, and other
  2 15 school-related events.
  2 16    5.  All costs relating to maintenance of the school
  2 17 facility and ongoing furnishings and equipment replacement
  2 18 shall be the responsibility of the private investor, along
  2 19 with all tax benefits and liabilities relating to the
  2 20 construction and maintenance of the facility.
  2 21    6.  The private investor shall retain the right to contract
  2 22 with third parties for use of the school facility during
  2 23 periods when the facility is not being utilized by the school
  2 24 district.  The periods of nonutilization by the school
  2 25 district shall be specified in the lease agreement, together
  2 26 with the purposes for which the facility shall be used by
  2 27 contracting third parties.  If a proposed use is determined by
  2 28 the school district to be inappropriate for an educational
  2 29 facility used by schoolchildren, the proposed use shall not be
  2 30 approved by the school district for inclusion in the lease
  2 31 agreement.  The private investor shall agree to maintain the
  2 32 building in the same condition during and after use by a third
  2 33 party as the facility is customarily maintained during periods
  2 34 of utilization by the school district.  Possible third party
  2 35 contractors could include, but are not limited to, educational
  3  1 enrichment organizations, civic groups, day care facilities,
  3  2 religious organizations, community colleges, and governmental
  3  3 units.
  3  4    7.  School districts may submit an application for
  3  5 consideration for the pilot program to the department of
  3  6 education by September 1, 2001.  The department shall select a
  3  7 total of six public schools, three located in large school
  3  8 districts and three located in small school districts, to
  3  9 participate in the pilot program.  For purposes of this
  3 10 section, a large school district is a district with an actual
  3 11 enrollment of five thousand or more pupils, and a small school
  3 12 district is a district with an actual enrollment of under two
  3 13 thousand pupils.  The department shall notify all applicant
  3 14 school districts of the selected applicants within thirty days
  3 15 after application submission.  An application may be
  3 16 considered which would involve a collaborative association of
  3 17 more than one public school in a school district, or more than
  3 18 one school district applying for the construction of a
  3 19 regional facility if the actual enrollment of the combined
  3 20 school districts falls within the definition of a large or a
  3 21 small school district pursuant to this section.
  3 22    8.  The department shall coordinate the establishment of
  3 23 each pilot program, including the development of criteria to
  3 24 be included in a request for proposals for the selection of
  3 25 one or more private investors for the program, the selection
  3 26 of private investors from among the proposals submitted, the
  3 27 development of school facility construction plans and
  3 28 specifications by the school district, the provision of a
  3 29 dispute resolution process, and oversight with regard to
  3 30 potential third-party contractual uses for the facility and
  3 31 the terms of lease and lease-purchase agreements entered into
  3 32 between the school district and one or more private investors.
  3 33 The department shall prepare and submit an annual report to
  3 34 the general assembly each year for a five-year period, by
  3 35 January 1, regarding the status of each pilot project.  The
  4  1 report shall include detailed information regarding perceived
  4  2 advantages and disadvantages of the program, input from school
  4  3 district personnel, students, and parents associated with
  4  4 schools constructed pursuant to the program, and private
  4  5 investors constructing and maintaining the school facility.  
  4  6 SF 2338
  4  7 rn/cc/26

Text: SF02337                           Text: SF02339
Text: SF02300 - SF02399                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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