Senate Study Bill 3137 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF EDUCATION BILL) A BILL FOR An Act relating to deaccreditation of a school district by the 1 state board of education. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5405DP (5) 83 kh/sc

S.F. _____ H.F. _____ Section 1. Section 256.11, subsection 11, paragraphs c and 1 d, Code Supplement 2009, are amended to read as follows: 2 c. If the deficiencies have not been corrected, and the 3 conditional accreditation alternatives contained in the report 4 are not mutually acceptable to the state board and the local 5 board, the state board shall deaccredit the school district 6 and merge the territory of the school district with one or more 7 contiguous school districts at the end of the school year. The 8 state board may place a district under receivership for the 9 remainder of the school year. The receivership shall be under 10 the direct supervision and authority of the area education 11 agency in which the district is located. The decision of 12 whether to merge deaccredit the school district and require 13 payment of tuition for the district’s students or to place the 14 district under receivership shall be based upon a determination 15 by the state board of the best interests of the students, 16 parents, residents of the community, teachers, administrators, 17 and school district board members and upon the recommendations 18 of the accreditation committee and the director. 19 d. In the case of a nonpublic school, if the deficiencies 20 have not been corrected, the state board may declare 21 a deaccredit the nonpublic school to be nonaccredited . 22 The removal of accreditation deaccreditation shall take 23 effect on the date established by the resolution of the 24 state board, which shall be no later than the end of the 25 school year in which the nonpublic school is declared to be 26 nonaccredited deaccredited . 27 Sec. 2. Section 256.11, subsection 12, Code Supplement 28 2009, is amended to read as follows: 29 12. If the state board removes accreditation from 30 deaccredits a school district and merges the territory 31 of the school district with one or more contiguous school 32 districts, the deaccredited school district whose accreditation 33 is removed ceases to exist as a school corporation on 34 the effective date set by the state board for removal of 35 -1- LSB 5405DP (5) 83 kh/sc 1/ 3

S.F. _____ H.F. _____ accreditation deaccreditation . Notwithstanding any other 1 provision of law, the contiguous school districts receiving 2 territory of the former deaccredited school district whose 3 accreditation was removed are not considered successor school 4 corporations of the former deaccredited school district. 5 a. Division of assets and liabilities of the 6 deaccredited school district whose accreditation was 7 removed shall be as provided in this paragraph “a” and 8 in sections 275.29 through 275.31. 9 (1) If one or more of the contiguous school districts 10 receiving assets and liabilities of the deaccredited school 11 district whose accreditation was removed utilizes the 12 equalization levy, only that territory in the school district 13 imposing the equalization levy that comprises territory of the 14 former deaccredited school district shall be taxed. 15 (2) Income surtax revenue and revenues generated by 16 property taxes shall be distributed proportionately based on 17 taxable value of the territory received by one or more school 18 districts contiguous to the former deaccredited school district 19 whose accreditation was removed . 20 (3) Revenues that are based on student enrollment shall 21 be distributed based on percentages of students of the who 22 were enrolled in the deaccredited school district whose 23 accreditation was removed in the school year immediately 24 prior to deaccreditation and who now reside in territory 25 received by one or more school districts contiguous to the 26 deaccredited school district whose accreditation was removed . 27 (4) If the deaccredited school district has a negative fund 28 balance in its general fund at the time it is deaccredited 29 by the state board, the director may order that the positive 30 balance from one or more other funds of the deaccredited school 31 district be transferred to the deaccredited school district’s 32 general fund. 33 b. Prior to the effective date set by the state board for 34 removal of accreditation deaccreditation , the school district 35 -2- LSB 5405DP (5) 83 kh/sc 2/ 3

S.F. _____ H.F. _____ whose accreditation is to be removed shall remain responsible 1 for, and may retain such authority as is necessary to complete, 2 all of the following: 3 (1) Execution of one or more quitclaim deeds, in fulfillment 4 of the merger of territory received by one or more contiguous 5 school districts from the former deaccredited school district 6 whose accreditation was removed . 7 (2) Preparation of and payment for a final audit of all the 8 district’s financial accounts. 9 (3) Preparation and certification of a final certified 10 annual report to the department. 11 c. The provisions of section 275.57 apply when removal 12 deaccreditation of accreditation from a school district and 13 merger of its the territory of such school district with a 14 contiguous school district that is currently divided into 15 director districts leads to the formation of new director 16 districts. 17 EXPLANATION 18 This bill amends Code language relating to the accreditation 19 process for school districts and nonpublic schools. The bill 20 allows the director of the department of education to order the 21 positive fund balances held by a deaccredited school district 22 to be transferred to the school’s general fund if the school’s 23 general fund has a negative fund balance. The bill also 24 eliminates language that permitted the state board of education 25 to decide whether or not to require payment of tuition for a 26 deaccredited school district’s students. 27 The bill eliminates references to “nonaccredited”, 28 “merge”, and “removal of accreditation” and refers instead to 29 “deaccreditation” of a school district or nonpublic school. 30 -3- LSB 5405DP (5) 83 kh/sc 3/ 3