Senate File 2333 - Introduced SENATE FILE 2333 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 3112) A BILL FOR An Act relating to the powers of public and nonpublic schools 1 and political subdivisions regarding the sale, lease, or 2 transfer of real property for educational purposes. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5508SV (2) 90 lh/js

S.F. 2333 Section 1. Section 279.41, Code 2024, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3. The disposition of real property 3 containing a building or structure under this section is 4 subject to section 280.36. 5 Sec. 2. NEW SECTION . 280.36 Political subdivision property 6 for sale, lease, or transfer. 7 1. For purposes of this section, “political subdivision” 8 includes a county, city, or township. 9 2. Except as otherwise provided in this section, a political 10 subdivision shall not adopt, enforce, or administer an 11 ordinance, policy, or resolution that prohibits real property 12 containing a building or structure sold, leased, or transferred 13 by a public school from being used for any lawful educational 14 purpose by a nonpublic school. 15 3. A political subdivision shall not impose or enforce 16 any deed restriction that prohibits real property containing 17 a building or structure sold, leased, or transferred by 18 the political subdivision from being used for any lawful 19 educational purpose by a public school or a nonpublic school. 20 4. If a nonpublic school is the highest bidder for the 21 purchase of real property containing a building or structure, 22 the public school shall sell the property to the nonpublic 23 school. 24 5. A public school or a nonpublic school shall not implement 25 a deed restriction that prohibits a public school or a 26 nonpublic school from bidding on or purchasing real property 27 containing a building or structure. A deed restriction 28 violating this subsection shall be void and severable from the 29 deed and the deed may continue as valid. 30 Sec. 3. Section 297.15, subsection 1, Code 2024, is amended 31 to read as follows: 32 1. Any sale, lease, or transfer of real estate , owned 33 by a school district , containing less than two acres , and 34 situated wholly outside of a city, and not adjacent thereto, 35 -1- LSB 5508SV (2) 90 lh/js 1/ 4

S.F. 2333 and heretofore used as a schoolhouse site shall must be in 1 accordance with section 280.36. If the real estate is not 2 purchased or leased by or transferred to a public school or a 3 nonpublic school, the building or structure shall revert to the 4 then owner of the tract from which the same was taken, provided 5 that said owner of the tract last aforesaid shall, within the 6 time hereinafter prescribed, pay the value thereof to such 7 school district. 8 Sec. 4. Section 297.22, subsection 1, paragraph a, Code 9 2024, is amended to read as follows: 10 a. The Subject to section 280.36, the board of directors 11 of a school district may sell, lease, or dispose of, in whole 12 or in part, a schoolhouse, school site, or other property 13 belonging to the district. If the real property contains less 14 than two acres, is located outside of a city, is not adjacent 15 to a city, and was previously used as a schoolhouse site, the 16 procedure contained in sections 297.15 through 297.20 shall be 17 followed in lieu of this section . 18 Sec. 5. Section 297.22, subsection 2, paragraph a, Code 19 2024, is amended to read as follows: 20 a. The Subject to section 280.36, the board of directors of 21 a school district may sell, lease, exchange, give, or grant, 22 and accept any interest in real property to, with, or from 23 a county, municipal corporation, school district, township, 24 or area education agency if the real property is within the 25 jurisdiction of both the grantor and grantee. 26 Sec. 6. Section 331.301, Code 2024, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 23. a. Except as otherwise provided 29 in this subsection, a county shall not adopt, enforce, or 30 administer an ordinance, policy, or resolution that prohibits 31 real property containing a building or structure sold, leased, 32 or transferred by the county from being used for any lawful 33 educational purpose by a public school or a nonpublic school. 34 b. A county shall not adopt or enforce any deed restriction 35 -2- LSB 5508SV (2) 90 lh/js 2/ 4

S.F. 2333 that prohibits real property containing a building or structure 1 sold, leased, or transferred by the county from being used 2 for any lawful educational purpose by a public school or a 3 nonpublic school. 4 Sec. 7. Section 359.37, Code 2024, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 3. a. Except as otherwise provided in this 7 subsection, a township shall not adopt, enforce, or administer 8 a policy or resolution that prohibits real property containing 9 a building or structure sold, leased, or transferred by the 10 township from being used for any lawful educational purpose by 11 a public school or a nonpublic school. 12 b. A township shall not adopt or enforce any deed 13 restriction that prohibits real property containing a building 14 or structure sold, leased, or transferred by the township from 15 being used for any lawful educational purpose by a public 16 school or a nonpublic school. 17 Sec. 8. Section 364.3, Code 2024, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 18. a. Except as otherwise provided in 20 this subsection, a city shall not adopt, enforce, or administer 21 an ordinance, policy, or resolution that prohibits real 22 property containing a building or structure sold, leased, 23 or transferred by the city from being used for any lawful 24 educational purpose by a public school or a nonpublic school. 25 b. A city shall not adopt or enforce any deed restriction 26 that prohibits real property containing a building or structure 27 sold, leased, or transferred by the city from being used 28 for any lawful educational purpose by a public school or a 29 nonpublic school. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to the power of public and nonpublic 34 schools and political subdivisions regarding the sale, lease, 35 -3- LSB 5508SV (2) 90 lh/js 3/ 4

S.F. 2333 or transfer of property for educational purposes. A political 1 subdivision includes a county, city, or township. Political 2 subdivisions are prohibited from adopting and enforcing 3 an ordinance, policy, or resolution prohibiting the sale, 4 lease, or transfer of real property containing a building or 5 structure to a public or nonpublic school solely because the 6 public or nonpublic school intends to use the property for a 7 lawful educational purpose. The bill prohibits a political 8 subdivision, public school, or nonpublic school from adopting 9 or enforcing a deed restriction prohibiting a public or 10 nonpublic school from bidding on or purchasing real property 11 containing a building or structure or using such property, 12 once acquired, for any lawful educational purpose. If a 13 public school is accepting bids for a real property containing 14 a building or structure and a nonpublic school submits the 15 highest bid, the public school shall sell the property to the 16 nonpublic school. 17 The bill provides a public school and nonpublic school 18 the opportunity to purchase or lease property of less than 19 two acres outside the limits of a city that is owned by a 20 school district before the former owner of the real estate may 21 purchase the property. 22 -4- LSB 5508SV (2) 90 lh/js 4/ 4