Senate File 423 S-3075 Amend Senate File 423 as follows: 1 1. Page 46, after line 27 by inserting: 2 < DIVISION ___ 3 CHARTER OR INNOVATION ZONE SCHOOL CHANGES 4 Sec. ___. Section 256F.1, subsections 1 and 2, Code 5 2013, are amended by striking the subsections. 6 Sec. ___. Section 256F.1, subsection 4, Code 2013, 7 is amended by striking the subsection and inserting in 8 lieu thereof the following: 9 4. This section shall not be construed to provide 10 a means to keep open a school that the board of 11 directors of a school district closes. However, a 12 school board may endorse or authorize the establishing 13 of a charter or innovation zone school to replace the 14 school the board closes. Applicants seeking a charter 15 or innovation zone school under this circumstance 16 shall demonstrate to an authorizer that the charter 17 or innovation zone school sought is substantially 18 different in purpose and program from the school 19 the board closes and that the proposed charter or 20 innovation zone school satisfies the requirements of 21 this section. The authorizer shall not approve an 22 application submitted under section 256F.5 if the 23 application does not comply with this subsection. 24 Sec. ___. Section 256F.2, subsection 1, Code 2013, 25 is amended by striking the subsection and inserting in 26 lieu thereof the following: 27 1. “Applicant ” means an entity eligible to submit 28 to the state board an application to establish a 29 charter or innovation zone school in accordance 30 with this chapter. “Applicant” includes any of the 31 following: 32 a. The board of directors of a school district. 33 b. A consortium consisting of the boards of 34 directors of two or more school districts. 35 c. An area education agency board. 36 d. A consortium consisting of the boards of 37 directors of an area education agency and one or more 38 school districts, at least one of which is located 39 within the boundaries of the area education agency. 40 e. The board of directors of a community college. 41 f. A consortium consisting of the boards of 42 directors of a community college and one or more school 43 districts, at least one of which is located within the 44 boundaries of the community college. 45 g. An institution of higher education governed by 46 the state board of regents. 47 h. A consortium consisting of an institution of 48 higher education governed by the state board of regents 49 and the board of directors of one or more school 50 -1- SF423.1167 (10) 85 kh/rj 1/ 18 #1.

districts. 1 i. A consortium consisting of one or more 2 accredited private institutions as defined in section 3 261.9, all of which shall be exempt from taxation under 4 section 501(c)(3) of the Internal Revenue Code, and the 5 board of directors of one or more school districts. 6 j. A consortium consisting of the governing body 7 of a city or county with a population over ninety-five 8 thousand and the board of directors of one or more 9 school districts located, at least in part, within the 10 boundaries of the city or county. 11 k. A nonsectarian, nonreligious charitable 12 organization that is exempt from taxation under section 13 501(c)(3) of the Internal Revenue Code. 14 Sec. ___. Section 256F.2, Code 2013, is amended by 15 adding the following new subsections: 16 NEW SUBSECTION . 3A. “Authorizer” means the state 17 board, the state board of regents, or a board of 18 directors of a community college established pursuant 19 to chapter 260C. 20 NEW SUBSECTION . 7A. “Operator” means an applicant 21 approved by an authorizer to charter a school under 22 this chapter. 23 Sec. ___. Section 256F.3, subsection 2, paragraph 24 b, Code 2013, is amended to read as follows: 25 b. To receive approval to establish an innovation 26 zone school in accordance with this chapter , an 27 innovation zone consortium shall submit to an 28 authorizer an application to the state board which that 29 demonstrates the support of at least fifty percent of 30 the teachers employed at each proposed innovation zone 31 school on the date of the submission of the application 32 and fifty percent of the parents or guardians voting 33 whose children are enrolled at each proposed innovation 34 zone school, provided that a majority of the parents or 35 guardians eligible to vote participate in the ballot 36 process, according to procedures established by rules 37 of the state board authorizer . 38 Sec. ___. Section 256F.3, subsections 6 through 8, 39 Code 2013, are amended to read as follows: 40 6. Upon approval of an application for the proposed 41 establishment of a charter or innovation zone school, 42 the school board shall submit an application for 43 approval to establish the charter or innovation zone 44 school to the state board an authorizer in accordance 45 with section 256F.5 . The state board may reevaluate an 46 application approved by the state board of regents or 47 by a local community college board pursuant to section 48 256F.3A, subsection 1. 49 7. An application submitted to the state board 50 -2- SF423.1167 (10) 85 kh/rj 2/ 18

pursuant to subsection 2 , paragraph “b” , or subsection 1 6 shall set forth the manner in which the charter 2 school or innovation zone school will provide special 3 instruction, in accordance with section 280.4 , to 4 students who are limited English proficient. The 5 application shall set forth the manner in which the 6 charter school or innovation zone school will comply 7 with federal and state laws and regulations relating to 8 the federal National School Lunch Act and the federal 9 Child Nutrition Act of 1966, 42 U.S.C. § 1751–1785, and 10 chapter 283A . The state board authorizer shall approve 11 only those applications that meet the requirements 12 specified in section 256F.1, subsection 3 , and sections 13 256F.4 and 256F.5 . The state board authorizer may deny 14 an application if the state board authorizer deems that 15 approval of the application is not in the best interest 16 of the affected students. 17 8. The state board shall approve not Not more than 18 ten innovation zone consortium applications shall be 19 approved under this chapter . 20 Sec. ___. NEW SECTION . 256F.3A Duties of the 21 department. 22 The department shall do the following: 23 1. Develop and implement an orientation program for 24 operators. An operator shall successfully complete 25 the orientation program prior to chartering a school 26 pursuant to this chapter. The program shall include 27 but not be limited to accountability requirements, 28 reporting requirements, and financial management. 29 If the operator does not successfully complete the 30 orientation program in the time specified by the 31 department, the state board shall reevaluate the 32 operator’s application and may deny the application. 33 If the state board denies an application under this 34 subsection, the decision of the state board is final 35 agency action under chapter 17A. 36 2. Develop and implement or approve orientation 37 programs for members of the boards of directors of 38 charter or innovation zone schools, including but not 39 limited to orientation on the charter or innovation 40 zone school board’s role and responsibilities, 41 employment policies and practices, and financial 42 management. 43 3. Monitor and evaluate the fiscal, operational, 44 and student performance of the charter or innovation 45 zone school annually and provide a written annual 46 performance evaluation to the charter or innovation 47 zone school board and the authorizer. 48 4. Provide, every fifth year in which a charter 49 or innovation school is in operation and before the 50 -3- SF423.1167 (10) 85 kh/rj 3/ 18

authorizer considers renewing a charter or innovation 1 zone school’s contract, a formal written review of the 2 annual evaluations conducted pursuant to subsection 3. 3 Sec. ___. Section 256F.4, subsections 5 and 7, Code 4 2013, are amended by striking the subsections. 5 Sec. ___. Section 256F.4, subsections 2, 6, and 8, 6 Code 2013, are amended to read as follows: 7 2. Although a charter school or innovation zone 8 school may elect to comply with one or more provisions 9 of statute or administrative rule, a charter school 10 or innovation zone school is exempt from all statutes 11 and administrative rules applicable to a school, a 12 school board, or a school district, except that the 13 charter school or innovation zone school shall meet the 14 requirements of this chapter and shall do all of the 15 following: 16 a. Meet all applicable federal, state, and local 17 health and safety requirements and laws prohibiting 18 discrimination on the basis of race, creed, color, 19 sex, sexual orientation, gender identity, national 20 origin, religion, ancestry, or disability. A charter 21 school or innovation zone school shall be subject to 22 any court-ordered desegregation plan in effect for 23 the school district at the time the charter school or 24 innovation zone school application is approved. 25 b. Operate as a nonsectarian, nonreligious public 26 school. 27 c. Be free of tuition and application fees to 28 Iowa resident students between the ages of five and 29 twenty-one years. 30 d. Be subject to and comply with chapters 216 and 31 216A relating to civil and human rights. 32 e. Provide Make special education programs and 33 services available to students requiring special 34 education in accordance with chapter 256B . 35 f. Be subject to the same financial audits, 36 audit procedures, and audit requirements as a school 37 district. The audit shall be consistent with the 38 requirements of sections 11.6 , 11.14 , 11.19 , 256.9, 39 subsection 20 , section 256F.8, and section 279.29 , 40 except to the extent deviations are necessary because 41 of the program at the school. The department, the 42 auditor of state, or the legislative services agency 43 may conduct financial, program, or compliance audits. 44 g. Be subject eligible to and comply with 45 participate in the student achievement and teacher 46 quality program under chapter 284 relating to the 47 student achievement and teacher quality program . A 48 charter school or innovation zone school that complies 49 with chapter 284 shall receive state moneys or be 50 -4- SF423.1167 (10) 85 kh/rj 4/ 18

eligible to receive state moneys calculated as provided 1 in section 257.10, subsections 9 and 10 , and section 2 257.37A as if it did not operate under a charter school 3 or innovation zone school contract . 4 h. Be Notwithstanding section 256F.13, be subject 5 to and comply with chapters chapter 20 and 279 relating 6 to contracts with and discharge of teachers and 7 administrators at the discretion of the charter or 8 innovation zone school operator . 9 i. Be subject to and comply with the provisions 10 of chapter 285 relating to the transportation of 11 students , except that the provisions of section 285.1, 12 subsections 14, 15, 16, and 17, shall not apply . 13 j. Meetings and records of the advisory council are 14 subject to the provisions of chapters 21 and 22 . 15 j. Comply with sections 279.9, 280.17A, 280.17B, 16 280.21B, 280.24, and 280.28, and may suspend or expel a 17 student only as provided in section 282.4. A decision 18 made as provided in section 282.4 is subject to appeal 19 under section 290.1. 20 k. Comply with all statutes and administrative 21 rules relating to student records, including but not 22 limited to section 22.7, subsection 1, and sections 23 256H.1, 280.19A, 280.25, and 280.29, and shall submit 24 data to the department for purposes of the department’s 25 comprehensive management information system. 26 l. Comply with the requirements of chapter 283A. 27 m. Comply with any statewide accountability 28 requirements in statute or administrative rule 29 governing high school graduation requirements, the core 30 curriculum, core content standards, and assessments. 31 The charter school or innovation zone school shall 32 issue high school diplomas to students who successfully 33 meet the graduation requirements of the charter school 34 or innovation zone school. 35 6. Notwithstanding subsection 2 , a charter school 36 or innovation zone school shall meet the requirements 37 of section 256.7, subsection 21 . 38 8. A charter school or innovation zone consortium 39 may shall enter into contracts in accordance with 40 chapter 26 . 41 Sec. ___. Section 256F.4, subsections 3 and 4, 42 Code 2013, are amended by striking the subsections and 43 inserting in lieu thereof the following: 44 3. The primary focus of a charter or innovation 45 zone school shall be to provide a comprehensive program 46 of instruction for at least one grade or age group from 47 five through twenty-one years of age. 48 4. A charter or innovation zone school is a 49 municipality for the purposes of tort liability under 50 -5- SF423.1167 (10) 85 kh/rj 5/ 18

chapter 670. 1 Sec. ___. Section 256F.5, Code 2013, is amended by 2 striking the section and inserting in lieu thereof the 3 following: 4 256F.5 Application. 5 1. An application to operate a charter or 6 innovation zone school pursuant to this chapter shall 7 include but not be limited to the following: 8 a. A business plan that documents the proposed 9 charter or innovation zone school’s mission statement; 10 school purposes; program design; description of a 11 graduation plan, where applicable; financial plan; 12 governance and management structure; and background 13 and experience of the applicants and the initial board 14 and instructional staff, plus any other information 15 the authorizer requests. An applicant shall file a 16 separate application for each school the applicant 17 intends to operate. 18 b. A statement of assurances of legal compliance 19 prescribed by the state board. 20 c. The applicant’s ability to implement the 21 procedures and satisfy the criteria for operating a 22 school under this chapter. 23 d. The measures that will be implemented to 24 provide for oversight of the charter or innovation 25 zone school’s academic, financial, and operational 26 performance, and to ensure compliance with the terms 27 of any written contract entered into by the charter or 28 innovation zone school board of directors and the state 29 board. 30 e. A statement of support or nonsupport from the 31 board of directors of the school district, in which the 32 charter or innovation zone school would be located. 33 The statement shall be submitted to the applicant in a 34 timely manner by the school district board. 35 f. A statement demonstrating community support. 36 g. A statement of admission policies and 37 procedures. 38 h. The types and amounts of insurance liability 39 coverage to be obtained by the charter or innovation 40 zone school. 41 i. How special instruction, programs, and services 42 for children requiring special education and English 43 language learners under chapter 256B and section 44 280.4 will be made available and a description of 45 the financial parameters within which the special 46 instruction, programs, and services will be made 47 available. 48 2. If the applicant includes a school district 49 pursuant to section 256F.2, subsection 1, paragraph 50 -6- SF423.1167 (10) 85 kh/rj 6/ 18

“a” , “b” , “d” , “f” , “h” , “i” , or “j” , that will, under 1 the plan submitted, convert an existing attendance 2 center operated by the school district into a charter 3 or innovation zone school in accordance with this 4 chapter, the application shall demonstrate the support 5 of at least fifty percent of the teachers employed 6 at the school on the date of the submission of the 7 application and fifty percent of the parents or 8 guardians voting whose children are enrolled at the 9 school, provided that a majority of the parents or 10 guardians eligible to vote participate in the ballot 11 process, according to procedures established by rules 12 of the state board. Conversion of an existing school 13 to a charter or innovation zone school if approved 14 pursuant to this chapter shall occur at the beginning 15 of an academic year. 16 3. a. The authorizer shall approve or disapprove 17 an application within ninety business days of receipt 18 of the application. However, the state board of 19 regents or a local community college board of directors 20 is ineligible to approve an application submitted by a 21 consortium that includes the state board of regents or 22 the local community college board of directors. 23 b. If the application is denied, the authorizer 24 shall notify the applicant of the specific deficiencies 25 in writing and the applicant shall have twenty business 26 days to address the deficiencies to the authorizer’s 27 satisfaction. 28 (1) If the applicant addresses the deficiencies 29 within the time specified, the authorizer shall at its 30 next regularly scheduled meeting make a final decision 31 to approve or disapprove the application. 32 (2) If the applicant fails to address the 33 deficiencies in the time specified, the authorizer 34 shall notify the applicant that the application is 35 denied and the decision of the state board or the state 36 board of regents is final agency action under chapter 37 17A. If a local community college board of directors 38 disapproves the application under this subparagraph 39 (2), the decision may be appealed to the state board or 40 the state board of regents. 41 c. An applicant whose application is denied 42 pursuant to the process specified in this subsection 43 shall not submit another application until the 44 expiration of at least one calendar year after 45 notification of the disapproval of the application. 46 4. The authorizer shall establish criteria for 47 application approval that at a minimum consider the 48 following: 49 a. A comprehensive review of the application. 50 -7- SF423.1167 (10) 85 kh/rj 7/ 18

b. The available capacity and infrastructure 1 identified in the plan. 2 c. Contracting process specified in the plan. 3 d. Ongoing oversight and evaluation processes 4 relating to administration and staffing. 5 e. Charter or innovation zone school contract and 6 contract renewal criteria and processes. 7 5. Approval of an application and renewal of a 8 charter by an authorizer shall not be conditioned upon 9 the bargaining unit status of the employees of the 10 school. 11 Sec. ___. Section 256F.6, Code 2013, is amended by 12 striking the section and inserting in lieu thereof the 13 following: 14 256F.6 Formation of school —— board. 15 1. An operator who successfully completes the 16 orientation program required pursuant to section 17 256F.3A, subsection 1, before entering into a contract 18 or other agreement for professional or other services, 19 goods, or facilities, shall incorporate as a nonprofit 20 corporation under chapter 504 and shall establish an 21 initial board of directors composed of at least five 22 voting members, who are not related parties, until a 23 timely election for members of the ongoing charter 24 or innovation zone school board of directors is held 25 according to the school’s articles and bylaws. 26 2. Members of the charter or innovation zone school 27 board of directors established under the school’s 28 articles and bylaws shall be elected before the school 29 completes its third year of operation. The articles 30 and bylaws shall require that the board be composed of 31 not less than five voting members. The articles and 32 bylaws shall include clear policies regarding conflicts 33 of interest, standards of responsibility, and obedience 34 to law, fairness, and honesty. 35 3. Staff members employed at the school and all 36 parents or guardians of children enrolled in the school 37 are the voters eligible to elect the members of the 38 school’s board of directors. 39 4. A charter or innovation zone school shall 40 notify eligible voters of the school board election 41 dates at least thirty days before the election. Board 42 elections shall be held during the school year but may 43 not be conducted on days when the school is closed for 44 holidays or vacations. 45 5. a. Any charter or innovation zone school board 46 of directors shall be composed of the following: 47 (1) Notwithstanding section 279.7A, at least one 48 licensed teacher employed at the school. 49 (2) At least one parent or legal guardian of a 50 -8- SF423.1167 (10) 85 kh/rj 8/ 18

student enrolled in the school who is not an employee 1 of the school. 2 (3) At least one interested community member who is 3 not employed by the school and does not have a child 4 enrolled in the school. 5 b. The majority of members on the board may be 6 teachers, notwithstanding section 279.7A. 7 c. The chief financial officer and the chief 8 administrator of the charter or innovation zone school, 9 if elected, shall only serve as ex officio, nonvoting 10 board members. 11 d. Charter or innovation zone school employees 12 shall not serve on the board except as provided in this 13 subsection. 14 e. Except as provided in section 279.7A, 15 contractors providing facilities, goods, or services 16 to a charter or innovation zone school shall not serve 17 on the board. 18 f. Board articles and bylaws shall outline the 19 process and procedures for changing the board’s 20 governance model, consistent with chapter 504. 21 6. A charter or innovation zone school board 22 may change the governance model set forth in the 23 application or in the articles and bylaws of the 24 charter or innovation zone school only if the change 25 conforms with this section and a majority of the board 26 approves the change; the licensed teachers employed 27 by the school approve the change; and the authorizer 28 approves the change. 29 7. a. The authorizer may permit a charter or 30 innovation zone school board to expand the operation 31 of the charter or innovation zone school to additional 32 sites or to add grades at the school beyond those 33 described in the operator’s approved application only 34 after submitting a supplemental affidavit for approval 35 to the authorizer in a form and manner prescribed by 36 the authorizer. The supplemental affidavit shall 37 include the following: 38 (1) A proposed expansion plan that demonstrates 39 need and projected enrollment. 40 (2) Documentation that the expansion is warranted, 41 at a minimum, by longitudinal data demonstrating 42 students’ improved academic performance and growth on 43 student assessments. 44 (3) Documentation that the school is financially 45 sound and the financing the school needs to implement 46 the proposed expansion exists. 47 (4) Documentation that the school has the 48 governance structure and management capacity to carry 49 out the expansion. 50 -9- SF423.1167 (10) 85 kh/rj 9/ 18

b. The authorizer shall have sixty business days to 1 review and comment on the supplemental affidavit. The 2 authorizer shall notify the charter or innovation zone 3 school board of any deficiencies in the supplemental 4 affidavit and the charter or innovation zone school 5 board shall have twenty business days to address, to 6 the authorizer’s satisfaction, any deficiencies in the 7 supplemental affidavit. The school shall not expand 8 to additional sites or add grades until the authorizer 9 approves the supplemental affidavit. The authorizer’s 10 approval or disapproval of a supplemental affidavit is 11 final agency action. 12 8. The charter or innovation zone school board 13 of directors is a government or governmental body for 14 purposes of chapters 21 and 22. 15 9. Except as provided in subsection 5, members of 16 the charter or innovation zone school board are subject 17 to section 279.7A. 18 Sec. ___. Section 256F.8, Code 2013, is amended by 19 striking the section and inserting in lieu thereof the 20 following: 21 256F.8 Audit report. 22 1. The charter or innovation zone school shall 23 annually submit an audit report to the authorizer by 24 December 31. 25 2. The charter or innovation zone school, with 26 the assistance of the auditor conducting the audit, 27 shall include with the report a copy of all charter 28 or innovation zone school agreements for corporate 29 management services. If the entity that provides the 30 professional services to the charter or innovation zone 31 school is exempt from taxation under section 501 of 32 the Internal Revenue Code of 1986, that entity must 33 file with the state board by February 15 a copy of 34 the annual return required under section 6033 of the 35 Internal Revenue Code of 1986. 36 3. If the audit report finds that a material 37 weakness exists in the financial reporting systems of 38 a charter or innovation zone school, the charter or 39 innovation zone school shall submit a written report to 40 the authorizer at its first annual meeting explaining 41 how the material weakness will be resolved. An auditor 42 conducting the audit of the charter or innovation 43 zone school, as a condition of providing financial 44 services to a charter or innovation zone school, shall 45 agree to make available information about a charter 46 or innovation zone school’s financial audit to the 47 authorizer upon request. 48 Sec. ___. Section 256F.9, Code 2013, is amended by 49 striking the section and inserting in lieu thereof the 50 -10- SF423.1167 (10) 85 kh/rj 10/ 18

following: 1 256F.9 Admission requirements. 2 1. A charter or innovation zone school may limit 3 admission to the following: 4 a. Students within an age group or grade level. 5 b. Students who are either at risk of dropping out 6 or have dropped out of school. 7 c. Residents of a specific geographic area in which 8 the school is located when the majority of students 9 served by the school are eligible for free and reduced 10 price meals under the federal National School Lunch Act 11 and the federal Child Nutrition Act of 1966, 42 U.S.C. 12 § 1751-1785. 13 2. A charter or innovation zone school shall enroll 14 an eligible student who submits a timely application, 15 unless the number of applications exceeds the capacity 16 of a program, class, grade level, or building. In such 17 case, students shall be accepted by lot. The charter 18 or innovation zone school shall develop and publish 19 a lottery policy and process for use when accepting 20 students by lot. 21 3. A charter or innovation zone school shall give 22 enrollment preference to a sibling of an enrolled 23 student and to a foster child of that student’s parents 24 and may give preference for enrolling children of the 25 school’s staff before accepting other students by lot. 26 4. A charter or innovation zone school shall 27 not limit admission to students on the basis of 28 intellectual ability, measures of achievement or 29 aptitude, or athletic ability and shall not establish 30 any criteria or requirements for admission that are 31 inconsistent with this section. 32 5. The charter or innovation zone school shall 33 not distribute any services or goods of value to 34 students, parents, or guardians as an inducement, term, 35 or condition of enrolling a student in a charter or 36 innovation zone school. 37 Sec. ___. Section 256F.10, Code 2013, is amended by 38 striking the section and inserting in lieu thereof the 39 following: 40 256F.10 Employment and other operating matters. 41 A charter or innovation zone school shall employ or 42 contract with necessary teachers and administrators, 43 as defined by chapter 256, who hold valid licenses and 44 endorsements to perform the particular service for 45 which they are employed in the school. The school may 46 employ necessary employees who are not required to hold 47 teaching licenses to perform duties other than teaching 48 and may contract for other services. 49 Sec. ___. NEW SECTION . 256F.11 Leased space. 50 -11- SF423.1167 (10) 85 kh/rj 11/ 18

If space to be leased is constructed as a school 1 facility, a charter or innovation zone school may 2 lease such space from a school district or other 3 public organization; private, nonprofit nonsectarian 4 organization; private property owner; or a sectarian 5 organization. 6 Sec. ___. NEW SECTION . 256F.12 Affiliated 7 nonprofit building corporation. 8 1. A charter or innovation zone school may organize 9 an affiliated nonprofit building corporation to 10 renovate or purchase an existing facility to serve 11 as a school or to construct a new school facility as 12 provided in subsection 4 or 5. 13 2. An affiliated nonprofit building corporation 14 shall meet all of the following conditions: 15 a. Be incorporated under chapter 504 and comply 16 with applicable internal revenue service regulations. 17 b. Submit annually to the authorizer a list of 18 current board members and a copy of the corporation’s 19 annual audit. 20 3. An affiliated nonprofit building corporation 21 shall not serve as the leasing agent for property or 22 facilities it does not own. The state is immune from 23 liability resulting from a contract between a charter 24 or innovation zone school and an affiliated nonprofit 25 building corporation. 26 4. A charter or innovation zone school may organize 27 an affiliated nonprofit building corporation to 28 renovate or purchase an existing facility to serve as a 29 school if the charter or innovation zone school meets 30 the following criteria: 31 a. Has been operating for at least five consecutive 32 school years. 33 b. Has had a net positive unreserved general fund 34 balance as of June 30 in the preceding five fiscal 35 years. 36 c. Has a long-range strategic and financial plan. 37 d. Completes a feasibility study of available 38 buildings. 39 e. Documents enrollment projections and the need 40 to use an affiliated nonprofit building corporation to 41 renovate or purchase an existing facility to serve as 42 a school. 43 5. A charter or innovation zone school may organize 44 an affiliated nonprofit building corporation to 45 construct a new school facility if the charter school 46 meets the following conditions: 47 a. Lacks facilities available to serve as a school. 48 b. Has been operating for at least eight 49 consecutive school years. 50 -12- SF423.1167 (10) 85 kh/rj 12/ 18

c. Has had a net positive unreserved general fund 1 balance as of June 30 in the preceding eight fiscal 2 years. 3 d. Completes a feasibility study of facility 4 options. 5 e. Has a long-range strategic and financial plan 6 that includes enrollment projections and demonstrates 7 the need for constructing a new school facility. 8 Sec. ___. NEW SECTION . 256F.13 Collective 9 bargaining. 10 Employees of the board of directors of a charter 11 or innovation zone school may, if otherwise eligible, 12 organize under chapter 20 and comply with its 13 provisions. The board of directors of a charter 14 or innovation zone school is a public employer, for 15 the purposes of chapter 20, upon formation of one 16 or more bargaining units at the school. Bargaining 17 units at the school shall be separate from any other 18 units within the school district in which the charter 19 or innovation zone school is located, except that 20 bargaining units may remain part of the appropriate 21 bargaining unit of the school district within which the 22 charter or innovation zone school is located if the 23 employees of the charter or innovation zone school, the 24 board of directors of the charter or innovation zone 25 school, the exclusive representative of the appropriate 26 bargaining unit in the school district, and the board 27 of the school district agree to include the employees 28 in the appropriate bargaining unit of the school 29 district. 30 Sec. ___. NEW SECTION . 256F.14 Teacher retirement. 31 Teachers in a charter or innovation zone school are 32 public school teachers for the purposes of chapter 97B. 33 Sec. ___. NEW SECTION . 256F.15 Causes for 34 nonrenewal or termination of charter or innovation zone 35 school contract. 36 1. The authorizer may decline to renew a contract 37 entered into with the board of directors of a charter 38 or innovation zone school at the end of the contract 39 term for any ground listed in subsection 3. The 40 authorizer may unilaterally terminate a contract during 41 the term of the contract for any ground listed in 42 subsection 3. 43 2. At least sixty business days before not renewing 44 or terminating a contract, the authorizer shall notify 45 the board of directors of the charter or innovation 46 zone school of the proposed action in writing. The 47 notice shall state the grounds for the proposed action 48 in reasonable detail and that the charter or innovation 49 zone school’s board of directors may request in writing 50 -13- SF423.1167 (10) 85 kh/rj 13/ 18

a hearing before the authorizer within fifteen business 1 days of receiving notice of nonrenewal or termination 2 of the contract. Failure by the board of directors 3 to make a written request for a hearing within the 4 time specified shall be treated as acquiescence to 5 the proposed action. Upon receiving a timely written 6 request for a hearing, the authorizer shall give ten 7 business days’ notice to the charter or innovation 8 zone school’s board of directors of the hearing date. 9 The authorizer shall conduct the hearing before taking 10 final action. The authorizer shall take final action 11 to renew or not renew a contract no later than twenty 12 business days before the proposed date for terminating 13 the contract or the end date of the contract. 14 3. A charter or innovation zone school contract 15 entered into with the authorizer may be terminated or 16 not renewed by the authorizer upon any of the following 17 grounds: 18 a. Failure to meet the requirements for student 19 performance contained in the contract. 20 b. Failure to meet generally accepted standards of 21 fiscal management. 22 c. Violations of law. 23 d. Other good cause shown, including but not 24 limited to the existence of one or more other grounds 25 for revocation as specified in the contract. 26 4. If a contract is terminated or not renewed on 27 grounds specified in subsection 3, the school shall be 28 dissolved according to rules adopted by the authorizer, 29 and the assets of the charter or innovation zone 30 school shall be disposed of according to the applicable 31 provisions of chapter 504. 32 5. The authorizer, after providing reasonable 33 notice to the board of directors of a charter or 34 innovation zone school, and after providing an 35 opportunity for a public hearing, may terminate the 36 existing contract with the charter or innovation zone 37 school board if the charter or innovation zone school 38 has a history of the following: 39 a. Failure to meet student performance requirements 40 consistent with state law. 41 b. Financial mismanagement or gross failure to meet 42 generally accepted standards of fiscal management. 43 c. Violations of the law. 44 Sec. ___. NEW SECTION . 256F.16 Student enrollment 45 upon nonrenewal or termination of charter or innovation 46 zone school contract. 47 If a contract is not renewed or is terminated 48 according to section 256F.15, a student who attended 49 the charter or innovation zone school may enroll in the 50 -14- SF423.1167 (10) 85 kh/rj 14/ 18

district of residence or may submit an application to 1 a nonresident district according to section 282.18 at 2 any time, and shall be determined to have shown “good 3 cause” for purposes of section 282.18. Applications 4 and notices required by section 282.18 shall be 5 processed and provided in a prompt manner. The 6 application and notice deadlines in section 282.18 do 7 not apply under these circumstances. The charter or 8 innovation zone school shall transfer the student’s 9 educational records within ten business days of the 10 charter or innovation zone school’s closure to the 11 student’s school district of enrollment. 12 Sec. ___. NEW SECTION . 256F.17 Extent of specific 13 legal authority. 14 1. A charter or innovation zone school board may 15 sue and be sued. 16 2. A charter or innovation zone school board shall 17 not levy taxes or issue bonds. 18 3. A charter or innovation zone school is a 19 municipality for purposes of chapter 670. 20 Sec. ___. NEW SECTION . 256F.18 Funding. 21 A student enrolled in a charter or innovation zone 22 school shall be counted, for state school foundation 23 aid purposes, in the student’s district of residence. 24 A student’s residence, for purposes of this section, 25 means a residence under section 282.1. The board of 26 directors of the district of residence shall pay to the 27 charter or innovation zone school the district cost per 28 pupil, the teacher salary supplement district cost per 29 pupil, the professional development supplement district 30 cost per pupil, and the early intervention supplement 31 district cost per pupil under section 257.10, plus any 32 moneys received for the student as a result of the 33 non-English speaking weighting under section 280.4, 34 subsection 3, for the previous school year multiplied 35 by the district cost per pupil for the previous year. 36 In addition, the board of directors of the district of 37 residence shall pay to the charter or innovation zone 38 school any other per pupil moneys requested under the 39 charter or innovation zone school application approved 40 by the authorizer. 41 Sec. ___. NEW SECTION . 256F.19 Prior charter or 42 innovation zone schools and innovation zones. 43 1. A charter or innovation zone school established 44 prior to July 1, 2013, shall continue to be governed by 45 chapter 256F, Code 2013, until the term of the contract 46 entered into pursuant to section 256F.8, Code 2013, 47 ends. 48 2. This section is repealed July 1, 2019. 49 Sec. ___. Section 282.18, subsection 4, paragraph 50 -15- SF423.1167 (10) 85 kh/rj 15/ 18