Senate File 289 - IntroducedA Bill ForAn Act 1relating to the powers and duties of the boards of
2directors of area education agencies, school districts, and
3school corporations, and to the election of a director as
4school board president.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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 if the
10lease-purchase agreement exceeds ten years or the purchase
11price of the property to be acquired pursuant to a purchase or
12lease-purchase agreement exceeds twenty-five thousand dollars
13
 the amount stated in section 26.3, subsection 1, the area
14education agency shall conduct a public hearing on the proposed
15purchase or lease-purchase agreement and receive approval from
16the area education agency board of directors and the state
17board of education or its designee before entering into the
18agreement.
19   Sec. 2.  Section 273.3, subsections 7 and 12, Code 2021, are
20amended to read as follows:
   217.  Be authorized to lease, purchase, or lease-purchase,
22subject to the approval of the state board of education or
23its designee and to receive by gift and operate and maintain
24facilities and buildings necessary to provide authorized
25programs and services. However, a lease for less than ten
26years and with an annual cost of less than twenty-five thousand
27dollars
 the amount stated in section 26.3, subsection 1, does
28not require the approval of the state board. The state board
29shall not approve a lease, purchase, or lease-purchase until
30the state board is satisfied by investigation that public
31school corporations within the area do not have suitable
32facilities available. A purchase of property that is not a
33lease-purchase may be made only within two years of a disaster
34as defined in section 29C.2, subsection 4, and subject to the
35requirements of this subsection.
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   112.  Prepare an annual budget estimating income and
2expenditures for programs and services as provided in sections
3273.1, 273.2, this section, sections 273.4 through 273.8, and
4chapter 256B within the limits of funds provided under section
5256B.9 and chapter 257. The board shall give post notice of
6a public hearing on the proposed budget on the area education
7agency’s internet site and
by publication in an official county
8
 the newspaper in each county of general circulation in the
9territory of the area education agency in which the principal
10place of business of a school district that is a part of the
11area education agency is located. The notice shall specify the
12date, which shall be not later than March 1 of each year, the
13time, and the location of the public hearing. The proposed
14budget as approved by the board shall then be submitted to the
15state board of education, on forms provided by the department,
16no later than March 15 preceding the next fiscal year for
17approval. The state board shall review the proposed budget of
18each area education agency and shall before May 1, either grant
19approval or return the budget without approval with comments
20of the state board included. An unapproved budget shall be
21resubmitted to the state board for final approval not later
22than May 15. The state board shall give final approval only to
23budgets submitted by area education agencies accredited by the
24state board or that have been given conditional accreditation
25by the state board.
26   Sec. 3.  Section 279.1, subsection 2, Code 2021, is amended
27to read as follows:
   282.  Such organization shall be effected by the election of
29a president from the members of the board to serve for one
30year, and who shall be entitled to vote as a member. During
31nonelection years, the president shall be elected to serve for
32one year at a regular meeting held not less than one year,
33nor more than thirteen months, after the prior organizational
34meeting.

35   Sec. 4.  Section 279.33, subsection 2, Code 2021, is amended
-2-1by striking the subsection.
2   Sec. 5.  Section 279.38, subsections 1 and 2, Code 2021, are
3amended to read as follows:
   41.  Boards of directors of school corporations may pay,
5out of funds available to them, reasonable annual dues to
6the Iowa association of school boards. Each board that pays
7membership dues to the Iowa association of school boards shall
8annually report to the local community and to the department of
9education
the amount the board pays in annual dues to the Iowa
10association of school boards, the amount of any fees paid and
11revenue or dividend payments received for services the board
12receives from the association or from any of the association’s
13affiliated for-profit entities, and the products or services
14the school district received inclusive with membership in the
15association.
   162.  The financial condition and transactions of the Iowa
17association of school boards shall be audited as provided in
18section 11.6. In addition, annually the Iowa association of
19school boards shall publish and submit to the department of
20education
a listing of the school districts and the annual
21dues paid by each, the total revenue the association receives
22from each school district resulting from the payment of
23membership fees and the sale of products and services to
24the school district by the association or its affiliated
25for-profit entities, and shall publish an accounting of all
26moneys expended for expenses incurred by and salaries paid to
27legislative representatives and lobbyists of the association.
28In addition, the association shall submit to the general
29assembly copies of all reports the association provides to
30the United States department of education relating to federal
31grants and grant amounts that the association or its affiliated
32for-profit entities administer or distribute to school
33districts. The Iowa association of school boards is subject
34to chapters 21 and 22 relating to open meetings and public
35records.
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1   Sec. 6.  Section 279.41, Code 2021, is amended to read as
2follows:
   3279.41  Schoolhouses and sites sold — funds.
   41.  Moneys received from the condemnation, sale, or other
5disposition for public purposes of schoolhouses, school sites,
6or both schoolhouses and school sites, shall be deposited in
7the physical plant and equipment levy fund and may without a
8vote of the electorate be used for purposes authorized under
9section 298.3, as ordered by the board of directors of the
10school district corporation.
   112.  Notwithstanding subsection 1, the board of directors
12of a school corporation may take action to deposit moneys
13received as provided in subsection 1 in any account maintained
14by the school corporation after holding a public hearing on the
15proposed action of the board. The board shall publish notice
16of the time and place of the public hearing in the same manner
17as required in section 24.9.
18   Sec. 7.  Section 279.48, subsection 3, Code 2021, is amended
19by striking the subsection.
20   Sec. 8.  Section 279.60, subsection 2, Code 2021, is amended
21to read as follows:
   222.  The school district shall also collect information from
23each parent, guardian, or legal custodian of a kindergarten
24student enrolled in the district, including but not limited to
25
 on whether the student attended preschool, factors identified
26by the early childhood Iowa office pursuant to section 256I.5,
27and other demographic factors
. Each school district shall
28report the results of the community strategies employed during
29the prior school year pursuant to section 279.68, subsection
303, paragraph “a”, the assessment administered pursuant to
31subsection 1, and
the preschool information collected to
32the department of education in the manner prescribed by the
33department not later than January 1 of that school year. The
34early childhood Iowa office in the department of management
35shall have access to the raw data. The department shall review
-4-1the information submitted pursuant to this section and shall
2submit its findings and recommendations annually in a report to
3the governor, the general assembly, the early childhood Iowa
4state board, and the early childhood Iowa area boards.
5   Sec. 9.  Section 297.22, subsection 1, paragraphs b, c, and
6d, Code 2021, are amended to read as follows:
   7b.  (1)  Proceeds from the sale or disposition of real or
8other property shall be deposited into the fund which was
9used to account for the acquisition of the property. If
10the district is unable to determine which fund was used to
11account for the acquisition of the property or if the fund no
12longer exists in the district, the proceeds from the sale or
13disposition of real property shall be placed in the physical
14plant and equipment levy fund, and the proceeds from the sale
15or disposition of property other than real property shall be
16placed in the general fund. Proceeds from the lease of real or
17other property shall be placed in the general fund.
   18(2)  Notwithstanding subparagraph (1), the board of
19directors of a school district may take action to deposit the
20proceeds from the sale or disposition of real or other property
21in any account maintained by the school district after holding
22a public hearing on the proposed action of the board. The
23board shall publish notice of the time and place of the public
24hearing in the same manner as required in section 24.9.
   25c.  Before the board of directors may sell, lease for a
26period in excess of one year, or dispose of any property
27belonging to the school, the board shall hold a public hearing
28on the proposal. The board shall set forth its proposal in a
29resolution and shall publish notice of the time and the place
30of the public hearing on the resolution. The notice shall
31also describe the property. A locally known address for real
32property may be substituted for a legal description of real
33property contained in the resolution. Notice The board shall
34publish notice
of the time and place of the public hearing
35shall be published at least once not less than ten days but not
-5-1more than twenty days prior to the date of the hearing in a
2newspaper of general circulation in the district
 in the same
3manner as required in section 24.9
. After the public hearing,
4the board may make a final determination on the proposal
5contained in the resolution.
   6d.  However, property having a value of not more than five
7
 twenty-five thousand dollars, other than real property, may be
8sold or disposed of by any procedure which is adopted by the
9board. Each such sale or disposal shall be published by at
10least one insertion each week for two consecutive weeks
in a
11newspaper having general circulation in the district and any
12other disposition shall be published by at least one insertion
13in a newspaper having general circulation in the district
.
14   Sec. 10.  REPEAL.  Section 279.44, Code 2021, is repealed.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
   18This bill relates to the powers and duties of the boards of
19directors of area education agencies (AEAs), school districts,
20and school corporations to submit reports, dispose of property
21and deposit the proceeds, publish notice, and to the election
22of school board presidents.
   23DUTIES AND POWERS OF AREA EDUCATION AGENCY BOARD — BOARD
24APPROVAL ON CERTAIN LEASES — NOTICE. Code sections 273.2(2)
25and 273.3(7) are amended to raise the limit, from more than
26$25,000 to more than $100,000, on leases and lease purchases
27that would require approval of the state board of education.
28Code section 273.3(12) is amended to provide that notice of
29the public hearing on the AEA’s annual budget must be posted
30on the AEA’s internet site and by publication in a newspaper
31of general circulation. Current law requires that the notice
32be published in an official county newspaper in each county in
33the AEA territory.
   34ELECTION OF SCHOOL BOARD PRESIDENT. The bill amends
35Code sections 279.1(2) and 279.33(2) to replace a provision
-6-1requiring the school board president be elected in
2even-numbered years at the organizational meeting to serve for
3one year, with a provision requiring that during nonelection
4years, the school board president be elected to serve for one
5year at a regular meeting held between 12 and 13 months after
6the prior organizational meeting.
   7MEMBERSHIP IN ASSOCIATION OF SCHOOL BOARDS — REPORTS TO
8DEPARTMENT. The bill amends Code section 279.38 to eliminate a
9requirement that the boards of directors of school corporations
10which pay dues to the Iowa association of school boards report
11to the department of education the amount paid by the board to
12the association in annual dues. However, the bill adds that a
13report the association is currently required to publish, which
14includes a list of member school districts, annual dues paid by
15each, revenues received from the sale of products and services,
16and amounts paid relating to the association’s lobbying
17activities, must be submitted to the department of education.
   18SCHOOLHOUSES AND SITES SOLD — FUNDS. Currently, school
19districts must deposit and use moneys received from the
20condemnation, sale, or other disposition for public purposes
21of schoolhouses, school sites, or both schoolhouses and school
22sites as authorized by statute and as ordered by the board
23of directors of the school district. The bill replaces the
24reference to “school district” with “school corporation”,
25which is a broader term that typically includes area education
26agencies and community colleges. The bill also amends Code
27section 279.41 to provide that such boards may take action
28to deposit the moneys received in any account maintained by
29the school corporation after holding a public hearing on the
30proposed action. Such board must publish notice of the time
31and place of the public hearing.
   32EQUIPMENT PURCHASE. The bill strikes Code section 279.48(3)
33which provides that a school corporation must, before entering
34into a loan agreement for an equipment purchase, publish notice
35at least once in a newspaper of general circulation within the
-7-1school corporation at least 10 days before the meeting at which
2the loan agreement is to be approved.
   3ASSESSMENTS — REPORTS. The bill amends Code section
4279.60(2), which relates to administration of the teaching
5strategies gold early childhood assessment to every resident
6pre-k or four-year-old enrolled in a school district, and
7a universal screening instrument to kindergarten students
8enrolled in the district. The bill eliminates language which
9requires that a report submitted by a school district include
10information on factors identified by the early childhood Iowa
11office and other demographic factors, as well as language
12that requires school districts to report to the department of
13education the results of the community strategies employed in
14the prior school year and the assessment results.
   15POWER TO SELL, LEASE, OR DISPOSE OF PROPERTY — NOTICE. The
16bill amends Code section 297.22(1)(b)-(d) to give the boards
17of directors of school districts the option to take action
18to deposit the proceeds from the sale or disposition of real
19or other property in any account maintained by the school
20district after holding a public hearing on the proposed action.
21Existing language specifies in which funds such proceeds must
22be deposited. The board must publish notice of the time and
23place of the public hearing.
   24Also, a provision requiring that the notice the boards must
25publish prior to holding a public hearing on a proposal to
26sell, lease for a period in excess of one year, or dispose of
27any property belonging to the school, must be published at
28least once for not less than 10 days nor more than 20 days
29prior to the public hearing date in a newspaper of general
30circulation in the district, is replaced with a provision that
31allows for publication requirements that vary with the size of
32a municipality.
   33The bill raises the limit, from $5,000 to $25,000, for
34the value of property that may be sold or disposed of by any
35procedure which is adopted by a board. Language relating to
-8-1the frequency of notice publication of such sale, once each
2week for two weeks, in a newspaper of general publication is
3eliminated. The bill provides that such sale or disposal must
4be published in a newspaper of general circulation.
   5REPEAL. The bill repeals Code section 279.44, which
6requires school districts to conduct energy audits every five
7years.
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