House Study Bill 226 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON GOVERNMENT OVERSIGHT BILL BY CHAIRPERSON HAGENOW) A BILL FOR An Act relating to membership in and membership dues paid to 1 organizations representing school boards, board members, and 2 administrators, and to the responsibilities and duties of 3 such organizations, and providing penalties and remedies. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2719YC (10) 84 kh/rj
H.F. _____ Section 1. Section 279.38, Code 2011, is amended by striking 1 the section and inserting in lieu thereof the following: 2 279.38 Membership in organizations —— requirements. 3 1. As used in this section: 4 a. “Compensation” means the same as defined in section 8F.2, 5 subsection 2. 6 b. “Organization” means a local, state, regional, or 7 national organization which relates to the functions of 8 the board of directors of a school district or to the 9 administrators of a school district and to which the school 10 board pays monetary fees or annual dues in accordance with 11 subsection 2. 12 2. a. The board of directors of a school district, the 13 duly elected members of the school board, and designated 14 administrators of school districts may join and participate in 15 organizations, including but not limited to organizations such 16 as the Iowa association of school boards, the urban education 17 network, Iowa school finance information services, and the 18 school administrators of Iowa. The school board may pay out of 19 funds available to the school board reasonable monetary fees 20 or annual dues for membership of the school board, or a board 21 member or administrator, in such an organization. However, the 22 school board shall not pay monetary fees or annual dues to an 23 organization that is affiliated with or which derives revenue 24 or income from a for-profit subsidiary. 25 b. Each school board that pays monetary fees or annual 26 dues to an organization shall annually report to the local 27 community and to the department of education the amount paid 28 in annual dues to the organization and the amount of any dues, 29 fees, or assessments of any kind paid, and revenue or dividend 30 payments received, for services received from the organization, 31 and the products or services received due to membership in 32 the organization. The information shall be submitted to the 33 department electronically in the format specified by the 34 department. 35 -1- LSB 2719YC (10) 84 kh/rj 1/ 7
H.F. _____ 3. The financial condition and transactions of an 1 organization shall be audited in the same manner as school 2 corporations as provided in section 11.6. The organization 3 shall establish an audit committee to review the financial 4 condition and transactions of the organization and the report 5 of examination conducted in accordance with this subsection. 6 The auditor conducting an examination in accordance with this 7 subsection shall have full access to the audit committee 8 and to all of the organization’s records, reports, audits, 9 tax reports, and all other documents and papers issued or 10 maintained by the organization. 11 4. An organization shall do all of the following: 12 a. Publish annually on its internet site, and in a report 13 submitted annually to the department of education, the standing 14 committees on government oversight, and the general assembly, 15 all of the following: 16 (1) A listing of the school districts and the moneys paid 17 by each school district. 18 (2) The total revenue the organization receives from each 19 school district resulting from the payment of monetary fees or 20 annual dues and the sale of products and services to the school 21 district by the organization. 22 (3) The total amount of moneys expended for reimbursement of 23 expenses incurred by and compensation paid to the ten highest 24 paid employees of the organization as evidenced by the tax 25 forms submitted by the organization to the internal revenue 26 service. 27 (4) An accounting of all moneys expended for reimbursement 28 of expenses incurred by and compensation paid to all 29 legislative representatives and lobbyists of the organization. 30 b. Submit to the general assembly and the standing committee 31 on government oversight copies of all reports the organization 32 provides to the United States department of education relating 33 to federal grants and grant amounts that the organization 34 administers or distributes to school districts. 35 -2- LSB 2719YC (10) 84 kh/rj 2/ 7
H.F. _____ c. Provide education and training to the organization’s 1 board members in the fiduciary duties and legal 2 responsibilities of members. 3 5. a. A person who serves as the head of an organization 4 or otherwise serves in a supervisory capacity within the 5 organization shall not require an employee of the organization 6 to inform the person that the employee made a disclosure of 7 information permitted by this subsection and shall not prohibit 8 an employee of the organization from disclosing any information 9 to a board member or to any public official, a law enforcement 10 agency, a state agency, the auditor of state or an auditor 11 conducting an examination of the organization in accordance 12 with section 11.6, the office of the attorney general, the 13 office of citizens’ aide, or to a committee of the general 14 assembly if the employee reasonably believes the information 15 evidences a violation of law or rule, mismanagement, a gross 16 abuse of funds, an abuse of authority, or a substantial 17 and specific danger to public health or safety. However, 18 an employee may be required to inform the person that the 19 employee made a disclosure of information permitted by this 20 subsection if the employee represented that the disclosure was 21 the official position of the employee’s immediate supervisor 22 or employer. 23 b. A person shall not discharge an employee from or take 24 or fail to take action regarding an employee’s appointment or 25 proposed appointment to, promotion or proposed promotion to, 26 or any advantage in, a position administered by, or subject 27 to approval of, the person or the organization’s governing 28 board as a reprisal for a failure by that employee to inform 29 the person that the employee made a disclosure of information 30 permitted by this subsection, or for a disclosure of any 31 information by that employee authorized under paragraph “a” 32 if the employee reasonably believes the information evidences 33 a violation of law or rule, mismanagement, a gross abuse of 34 funds, an abuse of authority, or a substantial and specific 35 -3- LSB 2719YC (10) 84 kh/rj 3/ 7
H.F. _____ danger to public health or safety. However, an employee may 1 be required to inform the person that the employee made a 2 disclosure of information permitted by this subsection if the 3 employee represented that the disclosure was the official 4 position of the employee’s immediate supervisor or employer. 5 c. Paragraphs “a” and “b” do not apply if the disclosure of 6 the information is prohibited by statute. 7 d. A person who violates paragraph “a” or “b” commits a 8 simple misdemeanor. 9 e. Paragraph “b” may be enforced through a civil action. 10 (1) A person who violates paragraph “b” is liable to 11 an aggrieved employee for affirmative relief including 12 reinstatement, with or without back pay, or any other equitable 13 relief the court deems appropriate, including attorney fees and 14 costs. 15 (2) When a person commits, is committing, or proposes to 16 commit an act in violation of paragraph “b” , an injunction may 17 be granted through an action in district court to prohibit the 18 person from continuing such acts. The action for injunctive 19 relief may be brought by an aggrieved employee or the attorney 20 general. 21 f. A person shall not discharge an employee from or take 22 or fail to take action regarding an employee’s appointment or 23 proposed appointment to, promotion or proposed promotion to, 24 or any advantage in, a position administered by, or subject 25 to approval of, the person or the organization’s governing 26 board as a reprisal for the employee’s declining to participate 27 in contributions or donations to charities or community 28 organizations. 29 g. The person and the organization’s governing board 30 shall provide procedures for notifying the organization’s 31 new employees of the provisions of this subsection and shall 32 periodically conduct promotional campaigns to provide similar 33 information to the organization’s employees. The information 34 shall include the toll-free telephone number of the citizens’ 35 -4- LSB 2719YC (10) 84 kh/rj 4/ 7
H.F. _____ aide. 1 6. All meetings of the governing board of the organization 2 shall comply with the requirements of chapter 21 and all 3 records of the governing body and the organization shall be 4 maintained in accordance with chapter 22. 5 Sec. 2. REPEAL. Section 279.38A, Code 2011, is repealed. 6 EXPLANATION 7 This bill strikes Code section 279.38 and repeals Code 8 section 279.38A, but combines much of the language of these 9 two Code sections to modify the statutory requirements of 10 organizations to which school boards, school board members, 11 and school district administrators may join and pay monetary 12 fees or dues for membership. School boards, board members, and 13 school administrators may join and participate in local, state, 14 regional, and national organizations which directly relate 15 to the administrator or school board functions of the school 16 district. Such organizations include but are not limited to 17 the Iowa association of school boards, the urban education 18 network, Iowa school finance information services, and the 19 school administrators of Iowa. 20 The bill prohibits school boards from paying fees or dues 21 to an organization that is affiliated with or which derives 22 revenue or income from a for-profit subsidiary. 23 Each board that pays membership dues must annually report 24 the local community and to the department of education the 25 amount the board pays in annual dues to the organization and 26 the amount of any fees paid, and revenue or dividend payments 27 received, for services received from the organization, and 28 the products or services received due to membership in the 29 organization. The bill requires that the information be 30 submitted to the department electronically in the format 31 specified by the department. 32 The financial condition and transactions of the 33 organizations shall be audited in the same manner as school 34 districts. Under the bill, the organization must establish 35 -5- LSB 2719YC (10) 84 kh/rj 5/ 7
H.F. _____ an audit committee to review the financial condition and 1 transactions of the organization and the audit report. The 2 auditor conducting the examination shall have full access to 3 the audit committee and to all of the organization’s records, 4 reports, audits, tax reports, and all other documents and 5 papers issued or maintained by the organization. 6 Such organizations must publish annually, in a report 7 submitted annually to the department of education, the standing 8 committees on government oversight, and the general assembly, 9 a listing of the school districts and the dues paid by each 10 school district, the total revenue the organization receives 11 from each school district resulting from the payment of 12 membership fees and the sale of products and services to the 13 school district by the organization, the total amount of the 14 annual compensation and expenses paid to the organization’s 15 10 highest paid employees, and an accounting of all moneys 16 expended for reimbursement of expenses and compensation paid to 17 legislative representatives and lobbyists of the organization. 18 Under the bill, the organization must also provide education 19 and training to its board members regarding their fiduciary 20 duties and legal responsibilities. 21 The bill prohibits the head of the organization from 22 requiring an employee to inform the person that the employee 23 disclosed information, and prohibits the person taking adverse 24 employment action against an employee of the organization 25 who discloses information about the organization to a board 26 member, any public official, a law enforcement agency, a state 27 agency, the auditor of state or an auditor conducting an 28 examination in accordance with Code section 11.6, the office 29 of the attorney general, the office of citizens’ aide, or to a 30 committee of the general assembly if the employee reasonably 31 believes the information evidences a violation of law or rule, 32 mismanagement, a gross abuse of funds, an abuse of authority, 33 or a substantial or specific danger to public health or safety. 34 The provisions do not apply if the disclosure of information is 35 -6- LSB 2719YC (10) 84 kh/rj 6/ 7
H.F. _____ prohibited by statute. A person who violates the prohibitions 1 commits a simple misdemeanor and may be liable to an aggrieved 2 employee for affirmative relief. The prohibition against 3 adverse action may be enforced through a civil action, and 4 the employee may bring an action for injunctive relief by 5 the district court. Adverse action against an employee for 6 declining to participate in contributions or donations is also 7 prohibited. The person and the organization must provide 8 employee notification procedures relating to these prohibitions 9 and remedies and must conduct related promotional campaigns. 10 The organization’s governing boards meetings are subject to 11 Code chapter 21 and the governing board and the organization’s 12 records must be maintained in compliance with Code chapter 22. 13 -7- LSB 2719YC (10) 84 kh/rj 7/ 7