House File 2254 - Introduced HOUSE FILE 2254 BY ARNOLD A BILL FOR An Act relating to the disposition of certain former school 1 district funds by the director of the department of 2 education and including effective date, validation, and 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5375HH (10) 83 kh/sc
H.F. 2254 Section 1. DEPARTMENT OF EDUCATION —— AUTHORIZING FUND 1 TRANSFERS —— VALIDATION AND RETROACTIVE APPLICABILITY. 2 1. a. Notwithstanding any other statute or rule of law 3 to the contrary, if a school district whose accreditation was 4 removed by action of the state board of education effective 5 July 1, 2008, had a negative fund balance in its general fund 6 at the end of the school budget year beginning July 1, 2007, 7 the director of the department of education is authorized 8 to and shall approve by August 1, 2010, the transfer of any 9 positive balance from one or more funds of the school district 10 to the school district’s general fund for the school budget 11 year beginning July 1, 2007, and the transfer made is hereby 12 validated and to that extent, this Act applies retroactively to 13 July 1, 2007. 14 b. On the date on which the director of the department 15 of education approves the transfer of funds pursuant to this 16 subsection, the department shall provide notice of the approval 17 of the funds transferred pursuant to this subsection to the 18 boards of directors of the school districts to which the former 19 school district’s territory was merged and shall transmit to 20 the state board of education a record of the approval of the 21 funds transferred pursuant to this subsection. 22 2. The board of directors of a school district to which the 23 former school district’s territory was merged shall be exempted 24 from any liability resulting from the action taken by the 25 director of the department of education pursuant to subsection 26 1 if the school board, within 30 days of the date on which the 27 director of the department of education took action pursuant to 28 subsection 1, adopts a resolution to accept the action taken by 29 the director pursuant to subsection 1. 30 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 31 immediate importance, takes effect upon enactment. 32 EXPLANATION 33 This bill provides that if a school district whose 34 accreditation was removed by action of the state board of 35 -1- LSB 5375HH (10) 83 kh/sc 1/ 2
H.F. 2254 education effective July 1, 2008, had a negative fund balance 1 in its general fund at the time its accreditation was removed, 2 the director of the department of education is authorized 3 to and shall by August 1, 2010, approve the transfer of any 4 positive balance from one or more funds of the school district 5 to the school district’s general fund. The board of directors 6 of a school district to which the former school district’s 7 territory was merged is exempt from any liability resulting 8 from the transfer if the school board, within 30 days of the 9 date the director takes action to transfer the funds, adopts a 10 resolution to accept the action taken by the director. 11 On the date on which the director approves the transfer of 12 funds, the department must provide notice of the director’s 13 approval of the funds transfer to the affected school boards 14 and shall transmit to the state board of education a record of 15 the director’s approval of the funds transfer. 16 The bill takes effect upon enactment. 17 -2- LSB 5375HH (10) 83 kh/sc 2/ 2