Senate Study Bill 3112 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON GREEN) A BILL FOR An Act relating to the powers of educational institutions, 1 political subdivisions, and certain other governmental 2 entities regarding the sale, lease, or transfer of property 3 for educational purposes. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5508XC (7) 90 lh/js

S.F. _____ Section 1. Section 218.94, subsection 1, Code 2024, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. Any sale, lease, or transfer of a 3 building belonging to the state training school shall be 4 subject to the same limitations prescribed for public and 5 nonpublic schools in section 280.36. 6 Sec. 2. Section 256E.7, subsection 1, paragraph g, Code 7 2024, is amended to read as follows: 8 g. Acquire from public or private sources real property for 9 use as a charter school or a facility directly related to the 10 operations of the charter school , subject to the provisions of 11 section 280.36 . 12 Sec. 3. Section 260C.19, Code 2024, is amended to read as 13 follows: 14 260C.19 Acquisition of sites and buildings —— disposition . 15 1. Boards of directors of merged areas may acquire sites 16 and erect and equip buildings for use by community colleges and 17 may contract indebtedness and issue bonds to raise funds for 18 such purposes. 19 2. The sale, lease, or transfer of a building owned by 20 a community college shall be subject to the limitations 21 prescribed in section 280.36. 22 Sec. 4. Section 262.17, Code 2024, is amended to read as 23 follows: 24 262.17 Bidding in property. 25 In case of a sale upon execution, the premises may be bid 26 off in the name of the board of regents, for the benefit of 27 the institution to which the loan belongs , subject to section 28 280.36 . 29 Sec. 5. Section 262.18, Code 2024, is amended to read as 30 follows: 31 262.18 Deeds in trust. 32 Deeds for premises so acquired shall be held for the benefit 33 of the appropriate institution and such lands shall be subject 34 to lease or sale the same as other lands , subject to section 35 -1- LSB 5508XC (7) 90 lh/js 1/ 6

S.F. _____ 280.36 . 1 Sec. 6. Section 279.41, Code 2024, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 3. The disposition of the property under 4 this section is subject to section 280.36. 5 Sec. 7. NEW SECTION . 280.36 Political subdivision property 6 for sale, lease, or transfer. 7 1. For purposes of this section: 8 a. “Educational institution” means any of the following: 9 (1) A public school or nonpublic school. 10 (2) An institution of higher learning under the control of 11 the state board of regents pursuant to chapter 262. 12 (3) A community college established under chapter 260C. 13 (4) The state training school established in chapter 233A. 14 (5) An accredited private institution as defined in section 15 256.183. 16 b. “Political subdivision” includes a county, city, 17 township, school district, an institution governed by the 18 department of health and human services under chapter 218, 19 or the governing body of an educational institution, any 20 authority, agency, board, or commission of any such entity, 21 and a public body acting or purporting to act in a commercial, 22 business, economic development, or similar capacity for any 23 such entity. 24 2. Except as otherwise provided in this section, a 25 political subdivision shall not adopt, enforce, or administer 26 an ordinance, policy, or resolution that prohibits property 27 sold, leased, or transferred by the political subdivision from 28 being used for any lawful educational purpose by an educational 29 institution. 30 3. A educational institution shall not sell or lease for 31 a period of more than one year any building belonging to the 32 educational institution unless the educational institution 33 has first provided an opportunity for other educational 34 institutions to bid for the purchase of the building. 35 -2- LSB 5508XC (7) 90 lh/js 2/ 6

S.F. _____ 4. A political subdivision shall not impose or enforce 1 any deed restriction that prohibits property sold, leased, or 2 transferred by the political subdivision from being used for 3 any lawful educational purpose by an educational institution. 4 5. If a political subdivision offers property of the 5 political subdivision for sale, lease, or transfer, the 6 political subdivision shall not refuse to sell, lease, or 7 transfer the property to an educational institution solely 8 because the educational institution intends to use the property 9 for an educational purpose. A deed restriction violating this 10 subsection shall be void and severable from the deed and the 11 deed may continue as valid. 12 Sec. 8. Section 297.15, subsection 1, Code 2024, is amended 13 to read as follows: 14 1. Any sale, lease, or transfer of real estate , owned 15 by a school district , containing less than two acres , and 16 situated wholly outside of a city, and not adjacent thereto, 17 and heretofore used as a schoolhouse site shall provide 18 an educational institution with the right of first refusal 19 as provided in section 280.36. If the real estate is not 20 purchased or leased by or transferred to an educational 21 institution, the real estate shall revert to the then owner 22 of the tract from which the same was taken, provided that 23 said owner of the tract last aforesaid shall, within the time 24 hereinafter prescribed, pay the value thereof to such school 25 district. 26 Sec. 9. Section 297.22, subsection 1, paragraph a, Code 27 2024, is amended to read as follows: 28 a. The Subject to section 280.36, the board of directors 29 of a school district may sell, lease, or dispose of, in whole 30 or in part, a schoolhouse, school site, or other property 31 belonging to the district. If the real property contains less 32 than two acres, is located outside of a city, is not adjacent 33 to a city, and was previously used as a schoolhouse site, the 34 procedure contained in sections 297.15 through 297.20 shall be 35 -3- LSB 5508XC (7) 90 lh/js 3/ 6

S.F. _____ followed in lieu of this section . 1 Sec. 10. Section 297.22, subsection 2, paragraph a, Code 2 2024, is amended to read as follows: 3 a. The Subject to section 280.36, the board of directors of 4 a school district may sell, lease, exchange, give, or grant, 5 and accept any interest in real property to, with, or from 6 a county, municipal corporation, school district, township, 7 or area education agency if the real property is within the 8 jurisdiction of both the grantor and grantee. 9 Sec. 11. Section 331.301, Code 2024, is amended by adding 10 the following new subsection: 11 NEW SUBSECTION . 23. a. Except as otherwise provided 12 in this subsection, a county shall not adopt, enforce, or 13 administer an ordinance, policy, or resolution that prohibits 14 property sold, leased, or transferred by the county from being 15 used for any lawful educational purpose by an educational 16 institution. 17 b. A county shall not adopt or enforce any deed restriction 18 that prohibits property sold, leased, or transferred by the 19 county from being used for any lawful educational purpose by an 20 educational institution. 21 c. If a county offers property of the county for sale, 22 lease, or rent, the county must first provide an opportunity 23 for an educational institution to bid for the purchase of the 24 property. A county shall not refuse to sell, lease, or rent 25 the property to an educational institution solely because the 26 educational institution intends to use the property for an 27 educational purpose. 28 d. For purposes of this subsection, “educational 29 institution” means the same as defined in section 280.36. 30 Sec. 12. Section 359.37, Code 2024, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 3. a. Except as otherwise provided in this 33 subsection, a township shall not adopt, enforce, or administer 34 a policy or resolution that prohibits property sold, leased, 35 -4- LSB 5508XC (7) 90 lh/js 4/ 6

S.F. _____ or transferred by the township from being used for any lawful 1 educational purpose by an educational institution. 2 b. A township shall not adopt or enforce any deed 3 restriction that prohibits property sold, leased, or 4 transferred by the township from being used for any lawful 5 educational purpose by an educational institution. 6 c. If a township offers property of the township for 7 sale, lease, or transfer, the township must first provide an 8 opportunity for an educational institution to bid for the 9 purchase of the property. A township shall not refuse to sell, 10 lease, or rent the property to an educational institution 11 solely because the educational institution intends to use the 12 property for an educational purpose. 13 d. For purposes of this subsection, “educational 14 institution” means the same as defined in section 280.36. 15 Sec. 13. Section 364.3, Code 2024, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 18. a. Except as otherwise provided in 18 this subsection, a city shall not adopt, enforce, or administer 19 an ordinance, policy, or resolution that prohibits property 20 sold, leased, or transferred by the city from being used for 21 any lawful educational purpose by an educational institution. 22 b. A city shall not adopt or enforce any deed restriction 23 that prohibits property sold, leased, or transferred by the 24 city from being used for any lawful educational purpose by an 25 educational institution. 26 c. If a city offers property of the city for sale, lease, 27 or transfer, the city must first provide an opportunity for 28 an educational institution to bid for the purchase of the 29 property. A city shall not refuse to sell, lease, or rent 30 the property to an educational institution solely because the 31 educational institution intends to use the property for an 32 educational purpose. 33 d. For purposes of this subsection, “educational 34 institution” means the same as defined in section 280.36. 35 -5- LSB 5508XC (7) 90 lh/js 5/ 6

S.F. _____ EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to the power of political subdivisions 4 regarding the sale, lease, or transfer of property for 5 educational purposes. A political subdivision includes 6 a county, city, township, school district, an institution 7 governed by the department of health and human services under 8 Code chapter 218, or the governing body of an educational 9 institution, as defined in the bill, including any authority, 10 agency, board, or commission of any such entity. Political 11 subdivisions are prohibited from adopting and enforcing an 12 ordinance, policy, or resolution prohibiting the sale, lease, 13 or transfer of property to an educational institution solely 14 because the educational institution intends to use the property 15 for a lawful educational purpose. A political subdivision 16 offering property for sale, lease, or transfer is required 17 to provide an educational institution with a right of first 18 refusal. 19 The bill provides an educational institution the right of 20 first refusal of any real estate of less than two acres outside 21 the limits of a city that is owned by a school district before 22 the real estate reverts to the owner of the tract from whom it 23 was taken. 24 The bill prohibits a county, city, or township from adopting 25 or enforcing a deed restriction that prohibits property sold, 26 leased, or transferred by the political subdivision from being 27 used for any lawful educational purpose by an educational 28 institution. 29 -6- LSB 5508XC (7) 90 lh/js 6/ 6