SSB 3112 (LSB 5508XC (7) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON GREEN)

A BILL FOR

An Act relating to the powers of educational institutions, political subdivisions, and certain other governmental entities regarding the sale, lease, or transfer of property for educational purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 218.94, subsection 1, Code 2024, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  Any sale, lease, or transfer of a building belonging to the state training school shall be subject to the same limitations prescribed for public and nonpublic schools in section 280.36.
    Sec. 2.  Section 256E.7, subsection 1, paragraph g, Code 2024, is amended to read as follows:
   g.  Acquire from public or private sources real property for use as a charter school or a facility directly related to the operations of the charter school, subject to the provisions of section 280.36.
    Sec. 3.  Section 260C.19, Code 2024, is amended to read as follows:
   260C.19  Acquisition of sites and buildings —— disposition.
   1.  Boards of directors of merged areas may acquire sites and erect and equip buildings for use by community colleges and may contract indebtedness and issue bonds to raise funds for such purposes.
   2.  The sale, lease, or transfer of a building owned by a community college shall be subject to the limitations prescribed in section 280.36.
    Sec. 4.  Section 262.17, Code 2024, is amended to read as follows:
   262.17  Bidding in property.
   In case of a sale upon execution, the premises may be bid off in the name of the board of regents, for the benefit of the institution to which the loan belongs, subject to section 280.36.
    Sec. 5.  Section 262.18, Code 2024, is amended to read as follows:
   262.18  Deeds in trust.
   Deeds for premises so acquired shall be held for the benefit of the appropriate institution and such lands shall be subject to lease or sale the same as other lands, subject to section 280.36.
    Sec. 6.  Section 279.41, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  The disposition of the property under this section is subject to section 280.36.
    Sec. 7.  NEW SECTION.  280.36  Political subdivision property for sale, lease, or transfer.
   1.  For purposes of this section:
   a.  “Educational institution” means any of the following:
   (1)  A public school or nonpublic school.
   (2)  An institution of higher learning under the control of the state board of regents pursuant to chapter 262.
   (3)  A community college established under chapter 260C.
   (4)  The state training school established in chapter 233A.
   (5)  An accredited private institution as defined in section 256.183.
   b.  “Political subdivision” includes a county, city, township, school district, an institution governed by the department of health and human services under chapter 218, or the governing body of an educational institution, any authority, agency, board, or commission of any such entity, and a public body acting or purporting to act in a commercial, business, economic development, or similar capacity for any such entity.
   2.  Except as otherwise provided in this section, a political subdivision shall not adopt, enforce, or administer an ordinance, policy, or resolution that prohibits property sold, leased, or transferred by the political subdivision from being used for any lawful educational purpose by an educational institution. 
   3.  A educational institution shall not sell or lease for a period of more than one year any building belonging to the educational institution unless the educational institution has first provided an opportunity for other educational institutions to bid for the purchase of the building.
   4.  A political subdivision shall not impose or enforce any deed restriction that prohibits property sold, leased, or transferred by the political subdivision from being used for any lawful educational purpose by an educational institution.
   5.  If a political subdivision offers property of the political subdivision for sale, lease, or transfer, the political subdivision shall not refuse to sell, lease, or transfer the property to an educational institution solely because the educational institution intends to use the property for an educational purpose. A deed restriction violating this subsection shall be void and severable from the deed and the deed may continue as valid.
    Sec. 8.  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 provide an educational institution with the right of first refusal as provided in section 280.36. If the real estate is not purchased or leased by or transferred to an educational institution, the real estate 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. 9.  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. 10.  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. 11.  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 property sold, leased, or transferred by the county from being used for any lawful educational purpose by an educational institution. 
   b.  A county shall not adopt or enforce any deed restriction that prohibits property sold, leased, or transferred by the county from being used for any lawful educational purpose by an educational institution.
   c.  If a county offers property of the county for sale, lease, or rent, the county must first provide an opportunity for an educational institution to bid for the purchase of the property. A county shall not refuse to sell, lease, or rent the property to an educational institution solely because the educational institution intends to use the property for an educational purpose.
   d.  For purposes of this subsection, “educational institution” means the same as defined in section 280.36.
    Sec. 12.  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 property sold, leased, or transferred by the township from being used for any lawful educational purpose by an educational institution.
   b.  A township shall not adopt or enforce any deed restriction that prohibits property sold, leased, or transferred by the township from being used for any lawful educational purpose by an educational institution.
   c.  If a township offers property of the township for sale, lease, or transfer, the township must first provide an opportunity for an educational institution to bid for the purchase of the property. A township shall not refuse to sell, lease, or rent the property to an educational institution solely because the educational institution intends to use the property for an educational purpose.
   d.  For purposes of this subsection, “educational institution” means the same as defined in section 280.36.
    Sec. 13.  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 property sold, leased, or transferred by the city from being used for any lawful educational purpose by an educational institution. 
   b.  A city shall not adopt or enforce any deed restriction that prohibits property sold, leased, or transferred by the city from being used for any lawful educational purpose by an educational institution. 
   c.  If a city offers property of the city for sale, lease, or transfer, the city must first provide an opportunity for an educational institution to bid for the purchase of the property. A city shall not refuse to sell, lease, or rent the property to an educational institution solely because the educational institution intends to use the property for an educational purpose.
   d.  For purposes of this subsection, “educational institution” means the same as defined in section 280.36.
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 political subdivisions regarding the sale, lease, or transfer of property for educational purposes. A political subdivision includes a county, city, township, school district, an institution governed by the department of health and human services under Code chapter 218, or the governing body of an educational institution, as defined in the bill, including any authority, agency, board, or commission of any such entity. Political subdivisions are prohibited from adopting and enforcing an ordinance, policy, or resolution prohibiting the sale, lease, or transfer of property to an educational institution solely because the educational institution intends to use the property for a lawful educational purpose. A political subdivision offering property for sale, lease, or transfer is required to provide an educational institution with a right of first refusal.
   The bill provides an educational institution the right of first refusal of any real estate of less than two acres outside the limits of a city that is owned by a school district before the real estate reverts to the owner of the tract from whom it was taken.
   The bill prohibits a county, city, or township from adopting or enforcing a deed restriction that prohibits property sold, leased, or transferred by the political subdivision from being used for any lawful educational purpose by an educational institution.