SF 2333 (LSB 5508SV (2) 90)

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 and political subdivisions regarding the sale, lease, or transfer of real property for educational purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 279.41, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  The disposition of real property containing a building or structure under this section is subject to section 280.36.
    Sec. 2.  NEW SECTION.  280.36  Political subdivision property for sale, lease, or transfer.
   1.  For purposes of this section, “political subdivision” includes a county, city, or township.
   2.  Except as otherwise provided in this section, a political subdivision shall not adopt, enforce, or administer an ordinance, policy, or resolution that prohibits real property containing a building or structure sold, leased, or transferred by a public school from being used for any lawful educational purpose by a nonpublic school. 
   3.  A political subdivision shall not impose or enforce any deed restriction that prohibits real property containing a building or structure sold, leased, or transferred by the political subdivision from being used for any lawful educational purpose by a public school or a nonpublic school.
   4.  If a nonpublic school is the highest bidder for the purchase of real property containing a building or structure, the public school shall sell the property to the nonpublic school.
   5.  A public school or a nonpublic school shall not implement a deed restriction that prohibits a public school or a nonpublic school from bidding on or purchasing real property containing a building or structure. A deed restriction violating this subsection shall be void and severable from the deed and the deed may continue as valid.
    Sec. 3.  Section 297.15, subsection 1, Code 2024, is amended to read as follows:
   1.  Any sale, lease, or transfer of real estate, owned by a school district, containing less than two acres, and situated wholly outside of a city, and not adjacent thereto, and heretofore used as a schoolhouse site shall must be in accordance with section 280.36. If the real estate is not purchased or leased by or transferred to a public school or a nonpublic school, the building or structure shall revert to the then owner of the tract from which the same was taken, provided that said owner of the tract last aforesaid shall, within the time hereinafter prescribed, pay the value thereof to such school district.
    Sec. 4.  Section 297.22, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  The Subject to section 280.36, the board of directors of a school district may sell, lease, or dispose of, in whole or in part, a schoolhouse, school site, or other property belonging to the district. If the real property contains less than two acres, is located outside of a city, is not adjacent to a city, and was previously used as a schoolhouse site, the procedure contained in sections 297.15 through 297.20 shall be followed in lieu of this section.
    Sec. 5.  Section 297.22, subsection 2, paragraph a, Code 2024, is amended to read as follows:
   a.  The Subject to section 280.36, the board of directors of a school district may sell, lease, exchange, give, or grant, and accept any interest in real property to, with, or from a county, municipal corporation, school district, township, or area education agency if the real property is within the jurisdiction of both the grantor and grantee.
    Sec. 6.  Section 331.301, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  23.  a.  Except as otherwise provided in this subsection, a county shall not adopt, enforce, or administer an ordinance, policy, or resolution that prohibits real property containing a building or structure sold, leased, or transferred by the county from being used for any lawful educational purpose by a public school or a nonpublic school. 
   b.  A county shall not adopt or enforce any deed restriction that prohibits real property containing a building or structure sold, leased, or transferred by the county from being used for any lawful educational purpose by a public school or a nonpublic school.
    Sec. 7.  Section 359.37, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  a.  Except as otherwise provided in this subsection, a township shall not adopt, enforce, or administer a policy or resolution that prohibits real property containing a building or structure sold, leased, or transferred by the township from being used for any lawful educational purpose by a public school or a nonpublic school.
   b.  A township shall not adopt or enforce any deed restriction that prohibits real property containing a building or structure sold, leased, or transferred by the township from being used for any lawful educational purpose by a public school or a nonpublic school.
    Sec. 8.  Section 364.3, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  18.  a.  Except as otherwise provided in this subsection, a city shall not adopt, enforce, or administer an ordinance, policy, or resolution that prohibits real property containing a building or structure sold, leased, or transferred by the city from being used for any lawful educational purpose by a public school or a nonpublic school.
   b.  A city shall not adopt or enforce any deed restriction that prohibits real property containing a building or structure sold, leased, or transferred by the city from being used for any lawful educational purpose by a public school or a nonpublic school.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the power of public and nonpublic schools and political subdivisions regarding the sale, lease, or transfer of property for educational purposes. A political subdivision includes a county, city, or township. Political subdivisions are prohibited from adopting and enforcing an ordinance, policy, or resolution prohibiting the sale, lease, or transfer of real property containing a building or structure to a public or nonpublic school solely because the public or nonpublic school intends to use the property for a lawful educational purpose. The bill prohibits a political subdivision, public school, or nonpublic school from adopting or enforcing a deed restriction prohibiting a public or nonpublic school from bidding on or purchasing real property containing a building or structure or using such property, once acquired, for any lawful educational purpose. If a public school is accepting bids for a real property containing a building or structure and a nonpublic school submits the highest bid, the public school shall sell the property to the nonpublic school.
   The bill provides a public school and nonpublic school the opportunity to purchase or lease property of less than two acres outside the limits of a city that is owned by a school district before the former owner of the real estate may purchase the property.