Senate File 286 - Introduced
SENATE FILE 286
BY COMMITTEE ON EDUCATION
(SUCCESSOR TO SSB 1072)
A BILL FOR
1 An Act striking certain reporting requirements related to
2 nonprofit school organizations established by school
3 districts.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 Section 1. Section 279.62, Code 2021, is amended to read as
2 follows:
3 279.62 Nonprofit school organizations.
4 The board of directors of a school district may take action
5 to adopt a resolution to establish, and authorize expenditures
6 for the operational support of, an entity or organization for
7 the sole benefit of the school district and its students that
8 is exempt from federal income taxation under section 501(c)(3)
9 of the Internal Revenue Code. The entity or organization
10 shall reimburse the school district for expenditures made by
11 the school district on behalf of the entity or organization.
12 Prior to establishing such an entity or organization, the board
13 of directors shall hold a public hearing on the proposal to
14 establish such an entity or organization. Such an entity or
15 organization shall maintain its records in accordance with
16 chapter 22, except that the entity or organization shall
17 provide for the anonymity of a donor at the written request
18 of the donor. The board of directors of a school district
19 shall annually report to the department of education and to
20 the local community the administrative expenditures, revenues,
21 and activities of the entity or organization established by
22 the school district pursuant to this section. The department
23 shall include in its annual condition of education report a
24 statewide summary of the expenditures and revenues submitted in
25 accordance with this section.
26 EXPLANATION
27 The inclusion of this explanation does not constitute agreement with
28 the explanation’s substance by the members of the general assembly.
29 Code section 279.62 authorizes a school district to
30 establish, and authorize expenditures for the operational
31 support of, an entity or organization for the sole benefit
32 of the school district and its students that is exempt from
33 federal income taxation under section 501(c)(3) of the Internal
34 Revenue Code. The board of directors of the school district
35 is required to annually report to the department of education
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 S.F. 286
1 and to the local community the administrative expenditures,
2 revenues, and activities of the entity or organization, and the
3 department is required to include a summary of such information
4 in its annual condition of education report. This bill strikes
5 the requirement that the school district annually report to the
6 department of education and the requirement that the department
7 include a summary of such information in its annual report.
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Statutes affected:
Introduced: 279.62