H.F. 268 Section 1. NEW SECTION . 8G.20 Intent —— findings. 1 The general assembly finds that taxpayers should be able to 2 easily access the details on how school districts are spending 3 their tax dollars and other school revenues. Therefore, it is 4 the intent of the general assembly to direct the department of 5 management to create and maintain a searchable internet site 6 in order to provide information on the budgets, audits, and 7 financial information of school districts. 8 Sec. 2. NEW SECTION . 8G.21 Short title. 9 This subchapter shall be known as and may be cited as the 10 “School District Transparency Act” . 11 Sec. 3. NEW SECTION . 8G.22 Definitions. 12 As used in this subchapter, unless the context otherwise 13 requires: 14 1. “Director” means the director of the department of 15 management. 16 2. “Searchable internet site” means an internet site 17 that allows the public at no cost to search and compile the 18 information identified in section 8G.23 and that provides such 19 information in a format capable of being downloaded from the 20 site to personal computers. 21 3. “State audit or report” shall include any audit or report 22 required or authorized by law, including an audit or report 23 issued by the auditor of state, a state agency as defined in 24 section 8A.101, the legislative services agency, the general 25 assembly, or a legislative committee. 26 Sec. 4. NEW SECTION . 8G.23 School district financial 27 information searchable internet site created. 28 1. By January 1, 2021, the director shall develop and make 29 publicly available a searchable internet site for searching, 30 accessing, and processing the items, data, and information 31 required in this section, for the most recent school budget 32 year. The searchable internet site shall be developed in such 33 a way that the information can be provided to other software 34 applications, including internet software applications, in a 35 -1- LSB 1992YH (3) 88 md/jh 1/ 5

H.F. 268 manner and format that allows such software applications to 1 access and interpret the items, data, and information using 2 the internal programming of the software applications. In 3 gathering or receiving items, data, and information from school 4 districts, the director shall make a good-faith effort to 5 minimize the costs and disruptions to each school district and 6 the school district’s computer systems. 7 2. a. The searchable internet site developed pursuant to 8 this section shall allow the public at no cost to search and 9 compile the information provided pursuant to this subsection. 10 Each school district shall provide to the department of 11 management the following: 12 (1) The school district’s budget prepared and certified 13 under chapter 24. 14 (2) All state audits or reports of the school district. 15 (3) The school district’s quarterly financial statements 16 and other financial information including but not limited 17 to accounts payable check registers and credit, debit, and 18 purchase card statements. 19 (4) Any other information related to the items required 20 under subparagraph (1), (2), or (3), as specified by the 21 director. 22 b. Nothing in this subchapter shall be construed to require 23 or authorize the inclusion of personal information or other 24 information that is protected from public disclosure under 25 state or federal law or that is confidential in the searchable 26 internet site. 27 Sec. 5. NEW SECTION . 8G.24 Searchable internet site 28 updates. 29 1. Effective July 1, 2021, the searchable internet site 30 shall be updated regularly as new items, data, and information 31 become available, but shall be updated no less frequently than 32 quarterly thereafter as new items, data, and information become 33 available. All school districts shall provide to the director 34 data that is required to be included on the searchable internet 35 -2- LSB 1992YH (3) 88 md/jh 2/ 5

H.F. 268 site not later than sixty days following the close of each 1 quarter during the school budget year. The director shall 2 provide guidance to school districts to ensure compliance with 3 this section. 4 2. By January 1 following the conclusion of a school budget 5 year, the director shall add items, data, and information 6 for that school budget year to the searchable internet site. 7 Items, data, and information for previous school budget years 8 may be added as it becomes available and as time permits. The 9 director shall ensure that all items, data, and information 10 added to the searchable internet site remain accessible to the 11 public for a minimum of ten years. 12 Sec. 6. NEW SECTION . 8G.25 Noncompliance. 13 The director shall not be considered in compliance with this 14 subchapter if the items, data, and information required for 15 the searchable internet site are not available in a searchable 16 manner and capable of being compiled or if the public is 17 redirected to other government internet sites unless each of 18 those sites displays information from all school districts 19 and each category of information required can be searched 20 electronically by field in a single search. 21 Sec. 7. SCHOOL DISTRICT FINANCIAL INFORMATION INTERNET SITE 22 REPORT. The department of management shall conduct a study 23 to evaluate the development, implementation, compliance, and 24 use of the searchable internet site required under section 25 8G.23. The department of management shall submit a report on 26 the study, including the findings and recommendations of the 27 department, to the general assembly on or before January 1, 28 2026. 29 Sec. 8. STATE MANDATE FUNDING SPECIFIED. In accordance 30 with section 25B.2, subsection 3, the state cost of requiring 31 compliance with any state mandate included in this Act shall 32 be paid by a school district from state school foundation aid 33 received by the school district under section 257.16. This 34 specification of the payment of the state cost shall be deemed 35 -3- LSB 1992YH (3) 88 md/jh 3/ 5

H.F. 268 to meet all of the state funding-related requirements of 1 section 25B.2, subsection 3, and no additional state funding 2 shall be necessary for the full implementation of this Act 3 by and enforcement of this Act against all affected school 4 districts. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill establishes legislative findings that taxpayers 9 should be able to easily access the details on how school 10 districts are spending their tax dollars and other school 11 revenues. Additionally, the bill provides that it is the 12 intent of the general assembly to direct the department of 13 management to create and maintain a searchable internet site 14 in order to provide information on the budgets, audits, and 15 financial information of school districts. 16 Under the bill, by January 1, 2021, the director of the 17 department of management shall develop and make publicly 18 available a searchable internet site for searching, accessing, 19 and processing the items, data, and information required 20 in the bill for the most recent school budget year. The 21 searchable internet site is required to be developed in such 22 a way that the information can be provided to other software 23 applications, including internet software applications, in a 24 manner and format that allows such software applications to 25 access and interpret the items, data, and information using 26 the internal programming of the software applications. The 27 searchable internet site developed pursuant to the bill is 28 required to allow the public at no cost to search and compile 29 such information. Each school district is required to provide 30 the following to the department of management: (1) the school 31 district’s budget; (2) all state audits or reports of the 32 school district; (3) the school district’s quarterly financial 33 statements and other specified financial information; and (4) 34 any other information related to items (1), (2), or (3), as 35 -4- LSB 1992YH (3) 88 md/jh 4/ 5

H.F. 268 specified by the director of the department of management. 1 Effective July 1, 2021, the bill requires the searchable 2 internet site to be updated regularly as new items, data, 3 and information become available, but shall be updated no 4 less frequently than quarterly thereafter as new items, data, 5 and information become available. All school districts are 6 required to provide to the director data that is required to 7 be included on the searchable internet site not later than 60 8 days following the close of each quarter during the school 9 budget year. The bill requires the director of the department 10 of management to ensure that all items, data, and information 11 added to the searchable internet site remain accessible to 12 the public for a minimum of 10 years. By January 1 following 13 the conclusion of a school budget year, the director of the 14 department of management is required to add items, data, and 15 information for that budget year to the searchable internet 16 site. Items, data, and information for previous school budget 17 years may be added as it becomes available and as time permits. 18 The bill also establishes criteria to determine the director of 19 the department of management’s compliance with the bill. 20 The bill requires the department of management to conduct a 21 study to evaluate the development, implementation, compliance, 22 and use of the searchable internet site required under the 23 bill and submit a report to the general assembly on or before 24 January 1, 2026. 25 The bill may include a state mandate as defined in Code 26 section 25B.3. The bill requires that the state cost of 27 any state mandate included in the bill be paid by a school 28 district from state school foundation aid received by the 29 school district under Code section 257.16. The specification 30 is deemed to constitute state compliance with any state mandate 31 funding-related requirements of Code section 25B.2. The 32 inclusion of this specification is intended to reinstate the 33 requirement of political subdivisions to comply with any state 34 mandates included in the bill. 35 -5- LSB 1992YH (3) 88 md/jh 5/ 5