Senate Study Bill 1073 - IntroducedA Bill ForAn Act 1relating to the duties and powers of the boards of
2directors of the area education agencies to purchase, lease,
3or lease-purchase facilities and property or buildings
4without state board approval.
1   Section 1.  Section 273.2, subsection 2, Code 2021, is
2amended to read as follows:
   32.  An area education agency established under this chapter
4is a body politic as a school corporation for the purpose
5of exercising powers granted under this chapter, and may sue
6and be sued. An area education agency may hold property and
7execute purchase agreements within two years of a disaster as
8defined in section 29C.2, subsection 4, and lease-purchase
9agreements pursuant to section 273.3, subsection 7, and
10if the lease-purchase agreement exceeds ten years or the
11purchase price of the property to be acquired pursuant to a
12purchase or lease-purchase agreement exceeds twenty-five is
thousand dollars or greater, the area education agency
14shall conduct a public hearing on the proposed purchase or
15lease-purchase agreement and receive approval from the area
16education agency board of directors and the state board of
17education or its designee before entering into the agreement.
18   Sec. 2.  Section 273.3, subsection 7, Code 2021, is amended
19to read as follows:
   207.  Be authorized to lease, purchase, or lease-purchase,
21subject to the approval of the state board of education or
22its designee and to receive by gift and operate and maintain
23facilities and buildings necessary to provide authorized
24programs and services. However, a lease for less than ten
25years and with an annual cost of less than twenty-five seventy
26 thousand dollars does not require the approval of the state
27board. The state board shall not approve a lease, purchase,
28or lease-purchase until the state board is satisfied by
29investigation that public school corporations within the area
30do not have suitable facilities available. A purchase of
31property that is not a lease-purchase may be made only within
32two years of a disaster as defined in section 29C.2, subsection
334, and subject to the requirements of this subsection.
35The inclusion of this explanation does not constitute agreement with
-1-1the explanation’s substance by the members of the general assembly.
   2This bill relates to the authority of a board of directors of
3an area education agency to purchase, lease, or lease-purchase
4property, facilities, or buildings necessary to provide
5authorized programs and services. Such a purchase, lease, or
6lease-purchase must be approved by the state board of education
7unless the lease is for less than 10 years and the annual cost
8of the lease is less than $25,000. The bill increases the
9amount requiring state board approval from $25,000 to $70,000
10or greater.