SF 2368 (LSB 5177SV (1) 90)

SENATE FILE 2368

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO SSB 3157)

A BILL FOR

An Act relating to education by establishing a right of first refusal for charter schools to purchase or lease school district property and modifying charter school and open enrollment funding, charter school board member requirements, and the school start date.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
FUNDING FORMULA

    Section 1.  Section 256E.8, subsection 2, paragraph a, Code 2024, is amended to read as follows:
   a.  The charter school in which the student is enrolled shall receive under paragraph “c” an amount equal to the sum of the regular program state cost per pupil for the previous school budget year plus the teacher leadership supplement state cost per pupil, the teacher salary supplement cost per pupil, the professional development supplement state cost per pupil, and the early intervention supplement state cost per pupil for the previous fiscal budget year as provided in section 257.9 plus any moneys received by that would be due to the school district of residence for the student as a result of the non-English speaking weighting under section 280.4, subsection 3, for the previous school budget year multiplied by the state cost per pupil for the previous budget year. If a student is an eligible pupil under section 261E.6, the charter school shall pay the tuition reimbursement amount to an eligible postsecondary institution as provided in section 261E.7.
    Sec. 2.  Section 282.18, subsection 5, paragraph b, subparagraph (1), Code 2024, is amended to read as follows:
   (1)  The board of directors of the district of residence shall pay to the receiving district the sum of the state cost per pupil for the previous school budget year plus either the teacher leadership supplement state cost per pupil, the teacher salary supplement cost per pupil, the professional development supplement state cost per pupil, and the early intervention supplement state cost per pupil for the previous fiscal budget year as provided in section 257.9 or the teacher leadership supplement foundation aid for the previous fiscal year as provided in section 284.13, subsection 1, paragraph “d”, if both the district of residence and the receiving district are receiving such supplements, plus any moneys received that would be due to the school district of residence for the pupil as a result of the non-English speaking weighting under section 280.4, subsection 3, for the previous school budget year multiplied by the state cost per pupil for the previous budget year. If the pupil participating in open enrollment is also an eligible pupil under section 261E.6, the receiving district shall pay the tuition reimbursement amount to an eligible postsecondary institution as provided in section 261E.7.
DIVISION II
SCHOOL DISTRICT PROPERTY

    Sec. 3.  Section 256E.7, subsection 1, Code 2024, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  j.  Purchase or lease underutilized property or vacant property pursuant to a right of first refusal granted by the board of directors of a school district under section 297.24, subsection 3.
   NEW PARAGRAPH.  k.  Access underutilized property or vacant property owned by a school district pursuant to section 279.39, subsection 2.
    Sec. 4.  Section 278.1, subsection 1, paragraph b, Code 2024, is amended to read as follows:
   b.  Except when restricted by section 297.24 or 297.25, direct the sale, lease, or other disposition of any schoolhouse or school site or other property belonging to the corporation, and the application to be made of the proceeds thereof. However, nothing in this section shall not be construed to prevent the sale, lease, exchange, gift, or grant and acceptance of any interest in real or other property of the corporation to the extent authorized in section 297.22 or 297.24.
    Sec. 5.  Section 279.39, Code 2024, is amended to read as follows:
   279.39  School buildings —— reasonable access for charter schools.
   1.  The board of any school corporation directors of a school district shall establish attendance centers and provide suitable buildings for each school in the district and may at the regular or a special meeting resolve to submit to the registered voters of the district at an election held on a date specified in section 39.2, subsection 4, the question of voting a tax or authorizing the board to issue bonds, or both.
   2.  The board of directors of a school district shall allow charter schools established under chapter 256E reasonable access to underutilized property and vacant property, as those terms are defined in section 297.24, for educational purposes.
    Sec. 6.  Section 297.22, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  The provisions in subsections 1 through 3 relating to the sale or lease of school district property do not apply to underutilized property or vacant property that the board of directors of a school district sells or leases to a charter school pursuant to section 297.24.
    Sec. 7.  NEW SECTION.  297.23  Publication of information related to real property.
   The board of directors of a school district shall publish information related to all of the following on the school district’s internet site:
   1.  The square footage of each school building owned by the school district.
   2.  The enrollment capacity of each attendance center owned by the school district.
   3.  How each school building owned by the school district is currently utilized by the school district.
   4.  School buildings owned by the school district that are vacant.
    Sec. 8.  NEW SECTION.  297.24  Real property —— sale to other schools —— right of first refusal for charter schools.
   1.  For purposes of this section:
   a.  “Underutilized property” means real property owned by the school district that the school district has determined is not being used to the fullest extent reasonably possible by the school district because the school district uses the real property irregularly or intermittently or because the school district uses the real property for purposes that only require a portion of the real property.
   b.  “Vacant property” means real property owned by the school district that the school district has determined is not occupied by the school district or is not being put to use by the school district.
   2.  The board of directors of a school district shall not enter into any agreement that prohibits the sale of real property to any of the following:
   a.  A school district.
   b.  An accredited nonpublic school.
   c.  A charter school established pursuant to chapter 256E.
   d.  A charter school or innovation zone school established pursuant to chapter 256F.
   e.  The state board of regents.
   f.  An institution of higher education under the control of the state board of regents.
   g.  An accredited private institution as defined in section 256.183.
   h.  An eligible institution as defined in section 256.183.
   3.  The board of directors of a school district shall give a right of first refusal to an existing charter school established pursuant to chapter 256E that is located within the school district to purchase or lease underutilized property and vacant property that the school district is offering to sell or lease.
   4.  Subsection 3 shall be construed as independent of the power vested in the electors by section 278.1, and as additional to such power. If a board of directors of a school district has exercised its independent power under subsection 3 regarding the granting of a right of first refusal to an existing charter school established pursuant to chapter 256E that is located within the school district to purchase or lease underutilized property or vacant property, and has by resolution approved such action, the electors shall not subsequently proceed to exercise their power under section 278.1 for a purpose directly contrary to the action previously approved by the board of directors in accordance with subsection 3.
    Sec. 9.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection 3, shall not apply to this division of this Act.
DIVISION III
SCHOOL START DATE

    Sec. 10.  Section 279.10, subsection 1, Code 2024, is amended to read as follows:
   1.  The school year for each school district and accredited nonpublic school shall begin on July 1 and the school calendar shall begin no sooner than August 23 the first Tuesday following the final day of the Iowa state fair and no later than the first Monday in December. The school calendar shall include not less than one hundred eighty days or one thousand eighty hours of instruction during the calendar year, of which not more than five days or thirty hours of instruction may be delivered primarily over the internet except as otherwise provided in section 256.43 or in rules adopted by the state board of education pursuant to section 256.7, subsection 32. The board of directors of a school district and the authorities in charge of an accredited nonpublic school shall determine the school start date for the school calendar in accordance with this subsection and shall set the number of days or hours of required attendance for the school year as provided in section 299.1, subsection 2, but the board of directors of a school district shall hold a public hearing on any proposed school calendar prior to adopting the school calendar. If the board of directors of a district or the authorities in charge of an accredited nonpublic school extends the school calendar because inclement weather caused the school district or accredited nonpublic school to temporarily close during the regular school calendar, the school district or accredited nonpublic school may excuse a graduating senior who has met district or school requirements for graduation from attendance during the extended school calendar. A school corporation may begin employment of personnel for in-service training and development purposes before the date to begin elementary and secondary school.
DIVISION IV
CHARTER SCHOOLS —— BOARD MEMBER RESIDENCE

    Sec. 11.  Section 256E.7, subsection 11, Code 2024, is amended to read as follows:
   11.  A majority of the membership of each charter school’s governing board shall be residents of the geographic area served by the charter school. Each member of the governing board who is not a resident of the geographic area served by the charter school must be a resident of this state.
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 education by establishing a right of first refusal for charter schools to purchase or lease school district property and modifying charter school and open enrollment funding, charter school board member requirements, and the school start date.
   DIVISION I —— FUNDING FORMULA. The bill requires the department of education, when a student enrolls in a charter school, to pay the charter school a sum equal to the regular program state cost per pupil for the budget year plus the teacher leadership supplement state cost per pupil, the teacher salary supplement cost per pupil, the professional development supplement state cost per pupil, and the early intervention supplement state cost per pupil for the budget year, plus any moneys that would be due to the student’s school district of residence as a result of non-English speaking weighting for the budget year, multiplied by the state cost per pupil for the budget year. Under current law, the department of education only pays the state cost per pupil, teacher leadership supplement, and non-English speaking weighting based on the previous year as multiplied by the state cost per pupil based on the previous year to a charter school in which a student enrolls. The bill contains similar provisions for a school district of residence’s payments to a school in which a pupil open enrolls.
   DIVISION II —— SCHOOL DISTRICT PROPERTY. The bill requires the board of directors of a school district to allow charter schools reasonable access to underutilized property and vacant property for educational purposes. The bill also requires the board of directors of a school district to publish information related to the square footage of each school building owned by the school district, the enrollment capacity of each attendance center owned by the school district, how each school building owned by the school district is currently utilized by the school district, and school buildings owned by the school district that are vacant on the school district’s internet site.
   The bill prohibits the board of directors of a school district from entering into any agreement that prohibits the sale of real property to a school district, an accredited nonpublic school, a charter school, an innovation zone school, the state board of regents, an institution of higher education under the control of the state board of regents, or certain private colleges and universities.
   The bill requires the board of directors of a school district to give a right of first refusal to an existing charter school established pursuant to Code chapter 256E that is located within the school district to purchase or lease underutilized property and vacant property. The bill provides that this provision is to be construed as independent of the power vested in the electors by Code section 278.1 (power of electors), and as additional to such power. The bill also provides that if a board of directors of a school district has exercised its independent power under this provision, and has by resolution approved such action, the electors shall not subsequently proceed to exercise their power under Code section 278.1 for a purpose directly contrary to the action previously approved by the board of directors. The bill defines “underutilized property” as real property owned by the school district that the school district has determined is not being used to the fullest extent reasonably possible by the school district because the school district uses the real property irregularly or intermittently or because the school district uses the real property for purposes that only require a portion of the real property. The bill defines “vacant property” as real property owned by the school district that the school district has determined is not occupied by the school district or is not being put to use by the school district.
   The division may include a state mandate as defined in Code section 25B.3. The division makes inapplicable Code section 25B.2, subsection 3, which would relieve a school district from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, school districts are required to comply with any state mandate included in the division.
   DIVISION III —— SCHOOL START DATE. Current law provides that the school calendar for school districts and accredited nonpublic schools shall begin no sooner than August 23. The bill provides that the school calendar for school districts and accredited nonpublic schools shall instead begin no sooner than the first Tuesday following the final day of the Iowa state fair.
   DIVISION IV —— CHARTER SCHOOLS —— BOARD MEMBER RESIDENCE.  Current law provides that each member of the governing board of a charter school established under Code chapter 256E who is not a resident of the geographic area served by the charter school must be a resident of this state. The bill strikes this provision.