Text: SSB03179 Text: SSB03181 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 256.24 SCHOOL INVESTMENT 1 2 PARTNERSHIPS PILOT PROGRAM. 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. The private investor shall lease the facility back to 1 23 the school district at monthly payment levels below the 1 24 anticipated cost to the school district had it incurred the 1 25 school facility construction expenses directly, pursuant to a 1 26 lease agreement negotiated at the same time that the agreement 1 27 regarding construction of the school facility is entered into. 1 28 A lease agreement shall typically extend for a twenty-year 1 29 duration, with the option to continue the lease at the end of 1 30 the lease period, and also to permit the purchase of the 1 31 school facility by the school district at the conclusion of 1 32 the lease period at an agreed-upon price. Monthly lease 1 33 payments shall not exceed the present value of an amount 1 34 equivalent to eighty-five percent of the anticipated final 1 35 fair market value of the facility at the conclusion of the 2 1 initial lease term. 2 2 3. The school district shall retain control over all 2 3 decisions related to the education of students within the 2 4 school facility, including the determination of when the 2 5 facility shall and shall not be utilized by the school 2 6 district, the uses to which the facility shall be put during 2 7 periods when school is in session, and access to the facility 2 8 for after-hours athletic practices, extracurricular 2 9 activities, staff, parent, and teacher meetings, and other 2 10 school-related events. 2 11 4. All costs relating to maintenance of the school 2 12 facility and ongoing furnishings and equipment replacement 2 13 shall be the responsibility of the private investor, along 2 14 with all tax benefits and liabilities relating to the 2 15 construction and maintenance of the facility. 2 16 5. The private investor shall retain the right to contract 2 17 with third parties for use of the school facility during 2 18 periods when the facility is not being utilized by the school 2 19 district. The periods of nonutilization by the school 2 20 district shall be specified in the lease agreement, together 2 21 with the purposes for which the facility shall be used by 2 22 contracting third parties. If a proposed use is determined by 2 23 the school district to be inappropriate for an educational 2 24 facility used by schoolchildren, the proposed use shall not be 2 25 approved by the school district for inclusion in the lease 2 26 agreement. The private investor shall agree to maintain the 2 27 building in the same condition during and after use by a third 2 28 party as the facility is customarily maintained during periods 2 29 of utilization by the school district. Possible third party 2 30 contractors could include, but are not limited to, educational 2 31 enrichment organizations, civic groups, day care facilities, 2 32 religious organizations, community colleges, and governmental 2 33 units. 2 34 6. School districts may submit an application for 2 35 consideration for the pilot program to the department of 3 1 education by September 1, 2000. The department shall select a 3 2 total of six public schools, three located in large school 3 3 districts and three located in small school districts, to 3 4 participate in the pilot program. For purposes of this 3 5 section, a large school district is a district with an actual 3 6 enrollment of five thousand or more pupils, and a small school 3 7 district is a district with an actual enrollment of under two 3 8 thousand pupils. The department shall notify all applicant 3 9 school districts of the selected applicants by October 1, 3 10 2000. An application may be considered which would involve a 3 11 collaborative association of more than one public school in a 3 12 school district, or more than one school district applying for 3 13 the construction of a regional facility if the actual 3 14 enrollment of the combined school districts falls within the 3 15 definition of a large or a small school district pursuant to 3 16 this section. 3 17 7. The department shall coordinate the establishment of 3 18 each pilot program, including the development of criteria to 3 19 be included in a request for proposals for the selection of 3 20 one or more private investors for the program, the selection 3 21 of private investors from among the proposals submitted, the 3 22 development of school facility construction plans and 3 23 specifications by the school district, the provision of a 3 24 dispute resolution process, and oversight with regard to 3 25 potential third-party contractual uses for the facility and 3 26 the terms of lease and lease-purchase agreements entered into 3 27 between the school district and one or more private investors. 3 28 The department shall prepare and submit an annual report to 3 29 the general assembly each year for a five-year period, by 3 30 January 1, regarding the status of each pilot project. The 3 31 report shall include detailed information regarding perceived 3 32 advantages and disadvantages of the program, input from school 3 33 district personnel, students, and parents associated with 3 34 schools constructed pursuant to the program, and private 3 35 investors constructing and maintaining the school facility. 4 1 EXPLANATION 4 2 This bill provides for the establishment of a school 4 3 investment partnership pilot program to evaluate the 4 4 effectiveness of private participation in the funding and 4 5 management of school infrastructure and nonacademic services. 4 6 The bill provides that the purpose of the program is to shift 4 7 responsibility for the operation and financing of school 4 8 facility construction and maintenance to one or more private 4 9 investors, thereby facilitating the focus of public school 4 10 system resources on enhancing the educational experience of 4 11 the schoolchildren of Iowa. 4 12 The bill provides that each pilot project shall pair one or 4 13 more private investors with one or more school districts in a 4 14 partnership involving the shared utilization of school 4 15 facilities. Private investors shall finance the construction 4 16 and furnishing of school facilities based on school district 4 17 specifications, complete with all classroom furnishings and 4 18 equipment, and lease the facility back to the school district 4 19 at monthly payment levels below the anticipated cost to the 4 20 school district had it incurred the school facility 4 21 construction expenses directly. The bill provides that a 4 22 lease agreement shall be entered into, typically extending for 4 23 a 20-year duration, with the option to continue the lease at 4 24 the end of the lease period, and to permit the purchase of the 4 25 school facility by the school district at the conclusion of 4 26 the lease period at an agreed-upon price. 4 27 The bill provides that the school district shall retain 4 28 control over all decisions related to the education of 4 29 students within the school facility, and that all costs and 4 30 tax considerations relating to maintenance of the school 4 31 facility shall be the responsibility of the private investor. 4 32 The bill also provides that the private investor shall retain 4 33 the right to contract with third parties for use of the school 4 34 facility during periods when the facility is not being 4 35 utilized by the school district, with the periods available 5 1 for nonschool district use and the purposes to which the 5 2 school facility shall be put specified in the lease. The bill 5 3 provides that if a proposed use is determined by the school 5 4 district to be inappropriate for an educational facility, the 5 5 proposed use shall not be approved by the school district for 5 6 inclusion in the lease agreement, and that the private 5 7 investor shall agree to maintain the building in the same 5 8 condition during and after use by a third-party contractor as 5 9 the facility is customarily maintained during periods of 5 10 utilization by the school district. The bill provides 5 11 examples of potential third-party contractors. 5 12 The bill additionally provides that school districts may 5 13 submit an application for consideration for the pilot program 5 14 to the department of education by September 1, 2000. The bill 5 15 provides that the department shall select a total of six 5 16 public schools, three located in large school districts and 5 17 three located in small school districts, to participate in the 5 18 pilot program. The bill defines a large school district to be 5 19 one with an actual enrollment of 5,000 or more pupils, and a 5 20 small school district to be one with an actual enrollment of 5 21 under 2,000 pupils. The bill provides that the department 5 22 shall notify all applicant school districts of the selected 5 23 applicants by October 1, 2000, and that applications may 5 24 involve the association of more than one public school and 5 25 public school district. The bill provides that the department 5 26 shall coordinate the establishment of each pilot program, 5 27 including the development of criteria to be included in 5 28 requests for proposals and the selection of private investors, 5 29 the development of school facility construction plans and 5 30 specifications, provision of a dispute resolution process, and 5 31 oversight with regard to potential third-party contractual 5 32 uses for the facility and the terms of lease and lease- 5 33 purchase agreements. The bill provides that the department 5 34 shall submit a report to the general assembly by January 1 5 35 each year for a five-year period regarding the status of each 6 1 pilot project, which shall include information regarding 6 2 perceived advantages and disadvantages of the program, input 6 3 from school district personnel, students, and parents 6 4 associated with schools constructed pursuant to the program, 6 5 and private investors constructing and maintaining the school 6 6 facility. 6 7 LSB 5556XC 78 6 8 rn/as/5
Text: SSB03179 Text: SSB03181 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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