S.F. _____ Section 1. Section 273.2, subsection 2, Code 2021, is 1 amended to read as follows: 2 2. An area education agency established under this chapter 3 is a body politic as a school corporation for the purpose 4 of exercising powers granted under this chapter , and may sue 5 and be sued. An area education agency may hold property and 6 execute purchase agreements within two years of a disaster as 7 defined in section 29C.2, subsection 4 , and lease-purchase 8 agreements pursuant to section 273.3, subsection 7 , and if the 9 lease-purchase agreement exceeds ten years or the purchase 10 price of the property to be acquired pursuant to a purchase or 11 lease-purchase agreement exceeds twenty-five thousand dollars 12 the amount stated in section 26.3, subsection 1 , the area 13 education agency shall conduct a public hearing on the proposed 14 purchase or lease-purchase agreement and receive approval from 15 the area education agency board of directors and the state 16 board of education or its designee before entering into the 17 agreement. 18 Sec. 2. Section 273.3, subsections 7 and 12, Code 2021, are 19 amended to read as follows: 20 7. Be authorized to lease, purchase, or lease-purchase, 21 subject to the approval of the state board of education or 22 its designee and to receive by gift and operate and maintain 23 facilities and buildings necessary to provide authorized 24 programs and services. However, a lease for less than ten 25 years and with an annual cost of less than twenty-five thousand 26 dollars the amount stated in section 26.3, subsection 1, does 27 not require the approval of the state board. The state board 28 shall not approve a lease, purchase, or lease-purchase until 29 the state board is satisfied by investigation that public 30 school corporations within the area do not have suitable 31 facilities available. A purchase of property that is not a 32 lease-purchase may be made only within two years of a disaster 33 as defined in section 29C.2, subsection 4 , and subject to the 34 requirements of this subsection . 35 -1- LSB 1991XC (1) 89 kh/jh 1/ 9

S.F. _____ 12. Prepare an annual budget estimating income and 1 expenditures for programs and services as provided in sections 2 273.1 , 273.2 , this section , sections 273.4 through 273.8 , and 3 chapter 256B within the limits of funds provided under section 4 256B.9 and chapter 257 . The board shall give post notice of 5 a public hearing on the proposed budget on the area education 6 agency’s internet site and by publication in an official county 7 the newspaper in each county of general circulation in the 8 territory of the area education agency in which the principal 9 place of business of a school district that is a part of the 10 area education agency is located. The notice shall specify the 11 date, which shall be not later than March 1 of each year, the 12 time, and the location of the public hearing. The proposed 13 budget as approved by the board shall then be submitted to the 14 state board of education, on forms provided by the department, 15 no later than March 15 preceding the next fiscal year for 16 approval. The state board shall review the proposed budget of 17 each area education agency and shall before May 1, either grant 18 approval or return the budget without approval with comments 19 of the state board included. An unapproved budget shall be 20 resubmitted to the state board for final approval not later 21 than May 15. The state board shall give final approval only to 22 budgets submitted by area education agencies accredited by the 23 state board or that have been given conditional accreditation 24 by the state board. 25 Sec. 3. Section 279.1, subsection 2, Code 2021, is amended 26 to read as follows: 27 2. Such organization shall be effected by the election of 28 a president from the members of the board to serve for one 29 year, and who shall be entitled to vote as a member. During 30 nonelection years, the president shall be elected to serve for 31 one year at a regular meeting held not less than one year, 32 nor more than thirteen months, after the prior organizational 33 meeting. 34 Sec. 4. Section 279.33, subsection 2, Code 2021, is amended 35 -2- LSB 1991XC (1) 89 kh/jh 2/ 9

S.F. _____ by striking the subsection. 1 Sec. 5. Section 279.38, subsections 1 and 2, Code 2021, are 2 amended to read as follows: 3 1. Boards of directors of school corporations may pay, 4 out of funds available to them, reasonable annual dues to 5 the Iowa association of school boards. Each board that pays 6 membership dues to the Iowa association of school boards shall 7 annually report to the local community and to the department of 8 education the amount the board pays in annual dues to the Iowa 9 association of school boards, the amount of any fees paid and 10 revenue or dividend payments received for services the board 11 receives from the association or from any of the association’s 12 affiliated for-profit entities, and the products or services 13 the school district received inclusive with membership in the 14 association. 15 2. The financial condition and transactions of the Iowa 16 association of school boards shall be audited as provided in 17 section 11.6 . In addition, annually the Iowa association of 18 school boards shall publish and submit to the department of 19 education a listing of the school districts and the annual 20 dues paid by each, the total revenue the association receives 21 from each school district resulting from the payment of 22 membership fees and the sale of products and services to 23 the school district by the association or its affiliated 24 for-profit entities, and shall publish an accounting of all 25 moneys expended for expenses incurred by and salaries paid to 26 legislative representatives and lobbyists of the association. 27 In addition, the association shall submit to the general 28 assembly copies of all reports the association provides to 29 the United States department of education relating to federal 30 grants and grant amounts that the association or its affiliated 31 for-profit entities administer or distribute to school 32 districts. The Iowa association of school boards is subject 33 to chapters 21 and 22 relating to open meetings and public 34 records. 35 -3- LSB 1991XC (1) 89 kh/jh 3/ 9

S.F. _____ Sec. 6. Section 279.41, Code 2021, is amended to read as 1 follows: 2 279.41 Schoolhouses and sites sold —— funds. 3 1. Moneys received from the condemnation, sale, or other 4 disposition for public purposes of schoolhouses, school sites, 5 or both schoolhouses and school sites, shall be deposited in 6 the physical plant and equipment levy fund and may without a 7 vote of the electorate be used for purposes authorized under 8 section 298.3 , as ordered by the board of directors of the 9 school district corporation . 10 2. Notwithstanding subsection 1, the board of directors 11 of a school corporation may take action to deposit moneys 12 received as provided in subsection 1 in any account maintained 13 by the school corporation after holding a public hearing on the 14 proposed action of the board. The board shall publish notice 15 of the time and place of the public hearing in the same manner 16 as required in section 24.9. 17 Sec. 7. Section 279.48, subsection 3, Code 2021, is amended 18 by striking the subsection. 19 Sec. 8. Section 279.60, subsection 2, Code 2021, is amended 20 to read as follows: 21 2. The school district shall also collect information from 22 each parent, guardian, or legal custodian of a kindergarten 23 student enrolled in the district , including but not limited to 24 on whether the student attended preschool , factors identified 25 by the early childhood Iowa office pursuant to section 256I.5 , 26 and other demographic factors . Each school district shall 27 report the results of the community strategies employed during 28 the prior school year pursuant to section 279.68, subsection 29 3 , paragraph “a” , the assessment administered pursuant to 30 subsection 1 , and the preschool information collected to 31 the department of education in the manner prescribed by the 32 department not later than January 1 of that school year. The 33 early childhood Iowa office in the department of management 34 shall have access to the raw data. The department shall review 35 -4- LSB 1991XC (1) 89 kh/jh 4/ 9

S.F. _____ the information submitted pursuant to this section and shall 1 submit its findings and recommendations annually in a report to 2 the governor, the general assembly, the early childhood Iowa 3 state board, and the early childhood Iowa area boards. 4 Sec. 9. Section 297.22, subsection 1, paragraphs b, c, and 5 d, Code 2021, are amended to read as follows: 6 b. (1) Proceeds from the sale or disposition of real or 7 other property shall be deposited into the fund which was 8 used to account for the acquisition of the property. If 9 the district is unable to determine which fund was used to 10 account for the acquisition of the property or if the fund no 11 longer exists in the district, the proceeds from the sale or 12 disposition of real property shall be placed in the physical 13 plant and equipment levy fund, and the proceeds from the sale 14 or disposition of property other than real property shall be 15 placed in the general fund. Proceeds from the lease of real or 16 other property shall be placed in the general fund. 17 (2) Notwithstanding subparagraph (1), the board of 18 directors of a school district may take action to deposit the 19 proceeds from the sale or disposition of real or other property 20 in any account maintained by the school district after holding 21 a public hearing on the proposed action of the board. The 22 board shall publish notice of the time and place of the public 23 hearing in the same manner as required in section 24.9. 24 c. Before the board of directors may sell, lease for a 25 period in excess of one year, or dispose of any property 26 belonging to the school, the board shall hold a public hearing 27 on the proposal. The board shall set forth its proposal in a 28 resolution and shall publish notice of the time and the place 29 of the public hearing on the resolution. The notice shall 30 also describe the property. A locally known address for real 31 property may be substituted for a legal description of real 32 property contained in the resolution. Notice The board shall 33 publish notice of the time and place of the public hearing 34 shall be published at least once not less than ten days but not 35 -5- LSB 1991XC (1) 89 kh/jh 5/ 9

S.F. _____ more than twenty days prior to the date of the hearing in a 1 newspaper of general circulation in the district in the same 2 manner as required in section 24.9 . After the public hearing, 3 the board may make a final determination on the proposal 4 contained in the resolution. 5 d. However, property having a value of not more than five 6 twenty-five thousand dollars, other than real property, may be 7 sold or disposed of by any procedure which is adopted by the 8 board. Each such sale or disposal shall be published by at 9 least one insertion each week for two consecutive weeks in a 10 newspaper having general circulation in the district and any 11 other disposition shall be published by at least one insertion 12 in a newspaper having general circulation in the district . 13 Sec. 10. REPEAL. Section 279.44, Code 2021, is repealed. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to the powers and duties of the boards of 18 directors of area education agencies (AEAs), school districts, 19 and school corporations to submit reports, dispose of property 20 and deposit the proceeds, publish notice, and to the election 21 of school board presidents. 22 DUTIES AND POWERS OF AREA EDUCATION AGENCY BOARD —— BOARD 23 APPROVAL ON CERTAIN LEASES —— NOTICE. Code sections 273.2(2) 24 and 273.3(7) are amended to raise the limit, from more than 25 $25,000 to more than $100,000, on leases and lease purchases 26 that would require approval of the state board of education. 27 Code section 273.3(12) is amended to provide that notice of 28 the public hearing on the AEA’s annual budget must be posted 29 on the AEA’s internet site and by publication in a newspaper 30 of general circulation. Current law requires that the notice 31 be published in an official county newspaper in each county in 32 the AEA territory. 33 ELECTION OF SCHOOL BOARD PRESIDENT. The bill amends 34 Code sections 279.1(2) and 279.33(2) to replace a provision 35 -6- LSB 1991XC (1) 89 kh/jh 6/ 9

S.F. _____ requiring the school board president be elected in 1 even-numbered years at the organizational meeting to serve for 2 one year, with a provision requiring that during nonelection 3 years, the school board president be elected to serve for one 4 year at a regular meeting held between 12 and 13 months after 5 the prior organizational meeting. 6 MEMBERSHIP IN ASSOCIATION OF SCHOOL BOARDS —— REPORTS TO 7 DEPARTMENT. The bill amends Code section 279.38 to eliminate a 8 requirement that the boards of directors of school corporations 9 which pay dues to the Iowa association of school boards report 10 to the department of education the amount paid by the board to 11 the association in annual dues. However, the bill adds that a 12 report the association is currently required to publish, which 13 includes a list of member school districts, annual dues paid by 14 each, revenues received from the sale of products and services, 15 and amounts paid relating to the association’s lobbying 16 activities, must be submitted to the department of education. 17 SCHOOLHOUSES AND SITES SOLD —— FUNDS. Currently, school 18 districts must deposit and use moneys received from the 19 condemnation, sale, or other disposition for public purposes 20 of schoolhouses, school sites, or both schoolhouses and school 21 sites as authorized by statute and as ordered by the board 22 of directors of the school district. The bill replaces the 23 reference to “school district” with “school corporation”, 24 which is a broader term that typically includes area education 25 agencies and community colleges. The bill also amends Code 26 section 279.41 to provide that such boards may take action 27 to deposit the moneys received in any account maintained by 28 the school corporation after holding a public hearing on the 29 proposed action. Such board must publish notice of the time 30 and place of the public hearing. 31 EQUIPMENT PURCHASE. The bill strikes Code section 279.48(3) 32 which provides that a school corporation must, before entering 33 into a loan agreement for an equipment purchase, publish notice 34 at least once in a newspaper of general circulation within the 35 -7- LSB 1991XC (1) 89 kh/jh 7/ 9

S.F. _____ school corporation at least 10 days before the meeting at which 1 the loan agreement is to be approved. 2 ASSESSMENTS —— REPORTS. The bill amends Code section 3 279.60(2), which relates to administration of the teaching 4 strategies gold early childhood assessment to every resident 5 pre-k or four-year-old enrolled in a school district, and 6 a universal screening instrument to kindergarten students 7 enrolled in the district. The bill eliminates language which 8 requires that a report submitted by a school district include 9 information on factors identified by the early childhood Iowa 10 office and other demographic factors, as well as language 11 that requires school districts to report to the department of 12 education the results of the community strategies employed in 13 the prior school year and the assessment results. 14 POWER TO SELL, LEASE, OR DISPOSE OF PROPERTY —— NOTICE. The 15 bill amends Code section 297.22(1)(b)-(d) to give the boards 16 of directors of school districts the option to take action 17 to deposit the proceeds from the sale or disposition of real 18 or other property in any account maintained by the school 19 district after holding a public hearing on the proposed action. 20 Existing language specifies in which funds such proceeds must 21 be deposited. The board must publish notice of the time and 22 place of the public hearing. 23 Also, a provision requiring that the notice the boards must 24 publish prior to holding a public hearing on a proposal to 25 sell, lease for a period in excess of one year, or dispose of 26 any property belonging to the school, must be published at 27 least once for not less than 10 days nor more than 20 days 28 prior to the public hearing date in a newspaper of general 29 circulation in the district, is replaced with a provision that 30 allows for publication requirements that vary with the size of 31 a municipality. 32 The bill raises the limit, from $5,000 to $25,000, for 33 the value of property that may be sold or disposed of by any 34 procedure which is adopted by a board. Language relating to 35 -8- LSB 1991XC (1) 89 kh/jh 8/ 9