House Study Bill 210 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED GOVERNOR'S
                                            BILL)


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

                                      A BILL FOR

  1 An Act relating to assisting schools to recover from disaster by
  2    changing the approval method for transfers of emergency fund
  3    moneys, by modifying certain funding provisions to relate to
  4    disaster recovery, by allowing area education agency boards
  5    greater authority to purchase and lease=purchase property, and
  6    by allowing certain school districts to use the previous
  7    year's budget enrollments in the 2009=2010 budget year, and
  8    providing an effective date.
  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
 10 TLSB 1724XL 83
 11 ak/sc/14

PAG LIN



  1  1    Section 1.  Section 24.6, Code 2009, is amended to read as
  1  2 follows:
  1  3    24.6  EMERGENCY FUND == LEVY.
  1  4    1.  A municipality may include in the estimate required, an
  1  5 estimate for an emergency fund.  A municipality may assess and
  1  6 levy a tax for the emergency fund at a rate not to exceed
  1  7 twenty=seven cents per thousand dollars of assessed value of
  1  8 taxable property of the municipality, provided that.  However,
  1  9 an emergency tax levy shall not be made until the municipality
  1 10 has first petitioned the state board and received its
  1 11 approval.
  1 12    2.  a.  Transfers of moneys may be made from the emergency
  1 13 fund to any other fund of the municipality for the purpose of
  1 14 meeting deficiencies in a fund arising from any cause,
  1 15 provided that.  However, a transfer shall not be made except
  1 16 upon the written approval of the state board, and then only
  1 17 when that approval is requested by a two=thirds vote of the
  1 18 governing body of the municipality.
  1 19    b.  Notwithstanding the requirements of paragraph "a", if
  1 20 the municipality is a school corporation, the school
  1 21 corporation may transfer money from the emergency fund to any
  1 22 other fund of the school corporation for the purpose of
  1 23 meeting deficiencies in a fund arising from payment of costs
  1 24 necessitated by, and incurred within two years of, a disaster
  1 25 as defined in section 29C.2, subsection 1.  However, a
  1 26 transfer shall not be made without the written approval of the
  1 27 school budget review committee.
  1 28    Sec. 2.  Section 256.9, Code 2009, is amended by adding the
  1 29 following new subsection:
  1 30    NEW SUBSECTION.  61.  Grant to public school districts and
  1 31 accredited nonpublic schools waivers from statutory
  1 32 obligations with which the entities cannot reasonably comply
  1 33 due to a disaster as defined in section 29C.2, subsection 1,
  1 34 if the county in which the school district or accredited
  1 35 nonpublic school is located has been declared a state or
  2  1 federal disaster area.  The school district or accredited
  2  2 nonpublic school shall conduct a public hearing during which
  2  3 school officials shall inform the public about the statutory
  2  4 obligations for which waiver is sought, and the public shall
  2  5 be provided an opportunity for input at the public hearing.
  2  6    Sec. 3.  Section 257.31, subsection 7, paragraph a, Code
  2  7 2009, is amended to read as follows:
  2  8    a.  The committee may authorize a district to spend a
  2  9 reasonable and specified amount from its unexpended cash
  2 10 balance for either of the following purposes:
  2 11    (1)  Furnishing, equipping, and contributing to the
  2 12 construction of a new building or structure for which the
  2 13 voters of the district have approved a bond issue as provided
  2 14 by law or the tax levy provided in section 298.2.
  2 15    (2)  The costs associated with the demolition of an unused
  2 16 school building, or the conversion of an unused school
  2 17 building for community use, in a school district involved in a
  2 18 dissolution or reorganization under chapter 275, if the costs
  2 19 are incurred within three years of the dissolution or
  2 20 reorganization.
  2 21    (3)  The costs associated with the demolition or repair of
  2 22 a building or structure in a school district if such costs are
  2 23 necessitated by, and incurred within two years of, a disaster
  2 24 as defined in section 29C.2, subsection 1.
  2 25    Sec. 4.  Section 257.32, subsection 1, unnumbered paragraph
  2 26 2, Code 2009, is amended by adding the following new
  2 27 paragraph:
  2 28    NEW PARAGRAPH.  f.  Costs associated with the demolition or
  2 29 repair of a building or structure within an area education
  2 30 agency boundary if such costs are necessitated by, and
  2 31 incurred within two years of, a disaster as defined in section
  2 32 29C.2, subsection 1.
  2 33    Sec. 5.  Section 273.2, subsection 2, Code 2009, is amended
  2 34 to read as follows:
  2 35    2.  An area education agency established under this chapter
  3  1 is a body politic as a school corporation for the purpose of
  3  2 exercising powers granted under this chapter, and may sue and
  3  3 be sued.  An area education agency may hold property and
  3  4 execute purchase and lease=purchase agreements pursuant to
  3  5 section 273.3, subsection 7, and if the lease lease=purchase
  3  6 agreement exceeds ten years or the purchase price of the
  3  7 property to be acquired pursuant to a purchase or
  3  8 lease=purchase agreement exceeds twenty=five thousand dollars,
  3  9 the area education agency shall conduct a public hearing on
  3 10 the proposed purchase or lease=purchase agreement and receive
  3 11 approval from the area education agency board of directors and
  3 12 the director of the department of education before entering
  3 13 into the agreement.
  3 14    Sec. 6.  Section 273.3, subsection 7, Code 2009, is amended
  3 15 to read as follows:
  3 16    7.  Be authorized to lease, purchase, or lease=purchase,
  3 17 subject to the approval of the director of the department of
  3 18 education and to receive by gift and operate and maintain
  3 19 facilities and buildings necessary to provide authorized
  3 20 programs and services.  However, a lease for less than ten
  3 21 years and with an annual cost of less than twenty=five
  3 22 thousand dollars does not require the approval of the
  3 23 director.  If a lease requires approval, the The director
  3 24 shall not approve the a lease, purchase, or lease=purchase
  3 25 until the director is satisfied by investigation that public
  3 26 school corporations within the area do not have suitable
  3 27 facilities available.
  3 28    Sec. 7.  Section 298.3, Code 2009, is amended by adding the
  3 29 following new subsection:
  3 30    NEW SUBSECTION.  13.  Demolition, cleanup, and other costs
  3 31 if such costs are necessitated by, and incurred within
  3 32 eighteen months of, a disaster as defined in section 29C.2,
  3 33 subsection 1.
  3 34    Sec. 8.  Section 423F.3, subsection 3, paragraph b, Code
  3 35 2009, is amended to read as follows:
  4  1    b.  (1)  If the board of directors intends to use funds for
  4  2 purposes other than those listed in paragraph "a", or change
  4  3 the use of funds to purposes other than those listed in
  4  4 paragraph "a", the board shall adopt a revenue purpose
  4  5 statement, subject to approval of the electors, listing the
  4  6 proposed use of the funds.
  4  7    (2)  School districts shall submit the statement to the
  4  8 voters no later than sixty days prior to the expiration of any
  4  9 existing revenue purpose statement or change in use not
  4 10 included in the existing revenue purpose statement.
  4 11    (3)  If a school district has been affected by a disaster,
  4 12 as defined in section 29C.2, subsection 1, the district may
  4 13 submit the statement, which shall only include
  4 14 disaster=related expenses, to the voters no later than
  4 15 eighteen months after the disaster occurred and subject to all
  4 16 other requirements in this section.
  4 17    Sec. 9.  DISASTER RELIEF FOR SCHOOL DISTRICTS == BUDGET
  4 18 ENROLLMENT.  Notwithstanding any provision of the Code to the
  4 19 contrary, for the school budget year beginning July 1, 2009, a
  4 20 school district determined by the department of education to
  4 21 have been significantly affected during 2008 by a disaster, as
  4 22 defined in section 29C.2, subsection 1, with a basic
  4 23 enrollment for the budget year, as defined under section
  4 24 257.6, that is less than the previous year's budget enrollment
  4 25 may use the previous year's budget enrollment.
  4 26    Sec. 10.  EFFECTIVE DATE.  The section of this Act relating
  4 27 to budget enrollment for the budget year beginning July 1,
  4 28 2009, being deemed of immediate importance, takes effect upon
  4 29 enactment.
  4 30                           EXPLANATION
  4 31    This bill assists school districts and accredited nonpublic
  4 32 schools to recover from a disaster as defined in Code section
  4 33 29C.2(1).
  4 34    Code section 24.6(2) is amended to allow a school
  4 35 corporation to transfer funds from its emergency fund when the
  5  1 school corporation has monetary deficiencies due to payment of
  5  2 costs necessitated by, and incurred within two years of, a
  5  3 disaster.  However, the transfer must first be approved by the
  5  4 school budget review committee.
  5  5    Code section 256.9(61) is enacted to allow the director of
  5  6 the department of education to waive statutory obligations
  5  7 that school districts and accredited nonpublic schools cannot
  5  8 reasonably comply with due to a disaster if the district's or
  5  9 school's county has been declared a state or federal disaster
  5 10 area.  The school district or accredited nonpublic school must
  5 11 provide a public hearing during which school officials must
  5 12 inform the public about the statutory obligations sought to be
  5 13 waived and must give the public a chance to give input.
  5 14    Code sections 257.31(7) and 257.32(1) are amended to allow
  5 15 the school budget review committee to authorize a school
  5 16 district or area education agency to spend amounts from
  5 17 specified sources for the costs of demolishing or repairing a
  5 18 building or structure if such costs are necessitated by, and
  5 19 incurred within two years of, a disaster.
  5 20    Code sections 273.2(2) and 273.3(7) are amended to give
  5 21 area education agencies the authorization to purchase and
  5 22 lease=purchase facilities and buildings with the approval of
  5 23 the director of the department of education.
  5 24    Code section 298.3(13) is amended to permit funds from the
  5 25 physical plant and equipment levy to be used for demolition,
  5 26 clean up, and other costs necessitated by, and incurred within
  5 27 18 months of, a disaster.
  5 28    Code section 423F.3(3)(b) is amended to allow school
  5 29 districts affected by a disaster to submit a revenue purpose
  5 30 statement to the voters no more than 18 months after the
  5 31 disaster in order to use funds from the secure an advanced
  5 32 vision for education fund to recover from the disaster.
  5 33 School districts submitting such a statement are still bound
  5 34 by all the requirements of Code chapter 423F concerning the
  5 35 secure an advanced vision for education fund.
  6  1    The bill allows a school district that was significantly
  6  2 affected by a disaster in 2008 to use predisaster student
  6  3 enrollment counts in order to offset a budget enrollment
  6  4 decrease for the 2009=2010 budget year.  School district
  6  5 budgets for fiscal year 2008=2009 were based on October 2007
  6  6 enrollments.  Any district that was impacted by a disaster and
  6  7 had an enrollment in October 2008 that was less than the
  6  8 previous year's enrollment would be allowed to use the
  6  9 previous year's enrollment for budgeting purposes in fiscal
  6 10 year 2009=2010.  The department of education shall determine
  6 11 which school districts were significantly affected by
  6 12 disasters during 2008, as defined in Code section 29C.2.  This
  6 13 section of the bill is effective upon enactment.
  6 14 LSB 1724XL 83
  6 15 ak/sc/14