Senate File 2177 - Introduced



                                       SENATE FILE       
                                       BY  QUIRMBACH


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to a school board member's interest in a school
  2    district contract for the performance of services and
  3    providing an exemption.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5952XS 81
  6 kh/je/5

PAG LIN



  1  1    Section 1.  Section 277.27, Code 2005, is amended to read
  1  2 as follows:
  1  3    277.27  QUALIFICATION.
  1  4    A member of the board shall, at the time of election or
  1  5 appointment, be an eligible elector of the corporation or
  1  6 subdistrict.  Notwithstanding any contrary provision of the
  1  7 Code, a member of the board of directors of a school district
  1  8 shall not receive compensation directly from the school board
  1  9 unless the compensation is for part=time or temporary
  1 10 employment and does not exceed the limitation set forth in
  1 11 section 279.7A, subsection 2, or unless the board member is
  1 12 employed as a substitute teacher in accordance with section
  1 13 279.7A, subsection 4.
  1 14    Sec. 2.  Section 279.7A, Code 2005, is amended to read as
  1 15 follows:
  1 16    279.7A  INTEREST IN PUBLIC CONTRACTS PROHIBITED ==
  1 17 EXCEPTIONS.
  1 18    1.  A member of the board of directors of a school
  1 19 corporation shall not have an interest, direct or indirect, in
  1 20 a contract for the purchase of goods, including materials and
  1 21 profits, and the performance of services for the director's
  1 22 school corporation.  A contract entered into in violation of
  1 23 this section is void.
  1 24    2.  This section does not apply to contracts for the
  1 25 purchase of goods or services which benefit a director, or to
  1 26 compensation for part=time or temporary employment which
  1 27 benefits a director, if the benefit to the director does not
  1 28 exceed two thousand five hundred dollars in a fiscal year, and
  1 29 contracts made by a school board, upon competitive bid in
  1 30 writing, publicly invited and opened.
  1 31    3.  This section does not apply to a contract that is a
  1 32 bond, note, or other obligation of a school corporation if the
  1 33 contract is not acquired directly from the school corporation,
  1 34 but is acquired in a transaction with a third party, who may
  1 35 or may not be the original underwriter, purchaser, or obligee
  2  1 of the contract, or to a contract in which a director has an
  2  2 interest solely by reason of employment if the contract is
  2  3 made by competitive bid in writing, publicly invited and
  2  4 opened, or if the remuneration of employment will not be
  2  5 directly affected as a result of the contract and the duties
  2  6 of employment do not directly involve the procurement or
  2  7 preparation of any part of the contract.  The competitive bid
  2  8 qualification of this section does not apply to a contract for
  2  9 professional services not customarily awarded by competitive
  2 10 bid.
  2 11    4.  This section does not apply to contracts for the
  2 12 employment of a board member as a substitute teacher if the
  2 13 salary specified in the board member's substitute teacher
  2 14 contract is determined pursuant to the salary schedule adopted
  2 15 by the board of directors of the school district or negotiated
  2 16 under chapter 20.
  2 17                           EXPLANATION
  2 18    This bill exempts a school board member who is under
  2 19 contract with the school district as a substitute teacher from
  2 20 the Code provision which states that a member of the board of
  2 21 directors of a school corporation shall not have an interest,
  2 22 direct or indirect, in a contract for the performance of
  2 23 services for the director's school corporation.  The salary
  2 24 specified in the person's substitute teaching contract must be
  2 25 as determined in the salary schedule adopted by the school
  2 26 board or negotiated under Code chapter 20.
  2 27 LSB 5952XS 81
  2 28 kh:rj/je/5