Amend Senate File 423 as follows:
   1.  Page 46, after line 27 by inserting: 

<DIVISION ___

CHARTER OR INNOVATION ZONE SCHOOL CHANGES
   Sec. ___.  Section 256F.1, subsections 1 and 2, Code 2013, are amended by striking the subsections.
   Sec. ___.  Section 256F.1, subsection 4, Code 2013, is amended by striking the subsection and inserting in lieu thereof the following:
   4.  This section shall not be construed to provide a means to keep open a school that the board of directors of a school district closes. However, a school board may endorse or authorize the establishing of a charter or innovation zone school to replace the school the board closes. Applicants seeking a charter or innovation zone school under this circumstance shall demonstrate to an authorizer that the charter or innovation zone school sought is substantially different in purpose and program from the school the board closes and that the proposed charter or innovation zone school satisfies the requirements of this section. The authorizer shall not approve an application submitted under section 256F.5 if the application does not comply with this subsection.
   Sec. ___.  Section 256F.2, subsection 1, Code 2013, is amended by striking the subsection and inserting in lieu thereof the following:
   1.  “Applicant” means an entity eligible to submit to the state board an application to establish a charter or innovation zone school in accordance with this chapter. “Applicant” includes any of the following:
   a.  The board of directors of a school district.
   b.  A consortium consisting of the boards of directors of two or more school districts.
   c.  An area education agency board.
   d.  A consortium consisting of the boards of directors of an area education agency and one or more school districts, at least one of which is located within the boundaries of the area education agency.
   e.  The board of directors of a community college.
   f.  A consortium consisting of the boards of directors of a community college and one or more school districts, at least one of which is located within the boundaries of the community college.
   g.  An institution of higher education governed by the state board of regents.
   h.  A consortium consisting of an institution of higher education governed by the state board of regents and the board of directors of one or more school districts.
   i.  A consortium consisting of one or more accredited private institutions as defined in section 261.9, all of which shall be exempt from taxation under section 501(c)(3) of the Internal Revenue Code, and the board of directors of one or more school districts.
   j.  A consortium consisting of the governing body of a city or county with a population over ninety-five thousand and the board of directors of one or more school districts located, at least in part, within the boundaries of the city or county.
   k.  A nonsectarian, nonreligious charitable organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code.
   Sec. ___.  Section 256F.2, Code 2013, is amended by adding the following new subsections:
   NEW SUBSECTION.  3A.  “Authorizer” means the state board, the state board of regents, or a board of directors of a community college established pursuant to chapter 260C.
   NEW SUBSECTION.  7A.  “Operator” means an applicant approved by an authorizer to charter a school under this chapter.
   Sec. ___.  Section 256F.3, subsection 2, paragraph b, Code 2013, is amended to read as follows:
   b.  To receive approval to establish an innovation zone school in accordance with this chapter, an innovation zone consortium shall submit
 
to an authorizer an application to the state board which
 
that demonstrates the support of at least fifty percent of the teachers employed at each proposed innovation zone school on the date of the submission of the application and fifty percent of the parents or guardians voting whose children are enrolled at each proposed innovation zone school, provided that a majority of the parents or guardians eligible to vote participate in the ballot process, according to procedures established by rules of the state board
 
authorizer.
   Sec. ___.  Section 256F.3, subsections 6 through 8, Code 2013, are amended to read as follows:
   6.  Upon approval of an application for the proposed establishment of a charter
 
or innovation zone school, the school board shall submit an application for approval to establish the charter
 
or innovation zone school to the state board
 
an authorizer in accordance with section 256F.5. 
 
The state board may reevaluate an application approved by the state board of regents or by a local community college board pursuant to section 256F.3A, subsection 1.
   7.  An application submitted to the state board pursuant to subsection 2, paragraph “b”, or subsection 6 shall set forth the manner in which the charter school or innovation zone school will provide special instruction, in accordance with section 280.4, to students who are limited English proficient. The application shall set forth the manner in which the charter school or innovation zone school will comply with federal and state laws and regulations relating to the federal National School Lunch Act and the federal Child Nutrition Act of 1966, 42 U.S.C. § 1751–1785, and chapter 283A. The state board
 
authorizer shall approve only those applications that meet the requirements specified in section 256F.1, subsection 3, and sections 256F.4 and 256F.5. The state board
 
authorizer may deny an application if the state board
 
authorizer deems that approval of the application is not in the best interest of the affected students. 
   8.  The state board shall approve not
 
Not more than ten innovation zone consortium applications
 
shall be approved under this chapter.
   Sec. ___.  NEW SECTION.  256F.3A  Duties of the department.
   The department shall do the following:
   1.  Develop and implement an orientation program for operators. An operator shall successfully complete the orientation program prior to chartering a school pursuant to this chapter. The program shall include but not be limited to accountability requirements, reporting requirements, and financial management. If the operator does not successfully complete the orientation program in the time specified by the department, the state board shall reevaluate the operator’s application and may deny the application. If the state board denies an application under this subsection, the decision of the state board is final agency action under chapter 17A.
   2.  Develop and implement or approve orientation programs for members of the boards of directors of charter or innovation zone schools, including but not limited to orientation on the charter or innovation zone school board’s role and responsibilities, employment policies and practices, and financial management.
   3.  Monitor and evaluate the fiscal, operational, and student performance of the charter or innovation zone school annually and provide a written annual performance evaluation to the charter or innovation zone school board and the authorizer.
   4.  Provide, every fifth year in which a charter or innovation school is in operation and before the authorizer considers renewing a charter or innovation zone school’s contract, a formal written review of the annual evaluations conducted pursuant to subsection 3.
   Sec. ___.  Section 256F.4, subsections 5 and 7, Code 2013, are amended by striking the subsections.
   Sec. ___.  Section 256F.4, subsections 2, 6, and 8, Code 2013, are amended to read as follows:
   2.  Although a charter school or innovation zone school may elect to comply with one or more provisions of statute or administrative rule, a charter school or innovation zone school is exempt from all statutes and
 
administrative rules applicable to a school, a school board, or a school district, except that the charter school or innovation zone school
 
shall meet the requirements of this chapter and shall do all of the following:
   a.  Meet all applicable federal, state, and local health and safety requirements and laws prohibiting discrimination on the basis of race, creed, color, sex, sexual orientation, gender identity, national origin, religion, ancestry, or disability. A charter school or innovation zone school shall be subject to any court-ordered desegregation plan in effect for the school district at the time the charter school or innovation zone school application is approved.
   b.  Operate as a nonsectarian, nonreligious public school.
   c.  Be free of tuition and application fees to Iowa resident students between the ages of five and twenty-one years.
   d.  Be subject to and comply with chapters 216 and 216A relating to civil and human rights.
   e.  Provide
 
Make special education
 
programs and services
 
available to students requiring special education in accordance with chapter 256B.
   f.  Be subject to the same financial audits, audit procedures, and audit requirements as a school district. The audit shall be consistent with the requirements of sections 11.6, 11.14, 11.19, 256.9, subsection 20,
 
section 256F.8, and section 279.29, except to the extent deviations are necessary because of the program at the school. The department, the auditor of state, or the legislative services agency may conduct financial, program, or compliance audits.
   g.  Be subject
 
eligible to and comply with
 
participate in the student achievement and teacher quality program under chapter 284 relating to the student achievement and teacher quality program. A charter school or innovation zone school that complies with chapter 284 shall receive state moneys or be eligible to receive state moneys calculated as provided in section 257.10, subsections 9 and 10, and section 257.37A as if it did not operate under a charter school or innovation zone school contract.
   h.  Be
 
Notwithstanding section 256F.13, be subject to and comply with chapters
 
chapter 20 and 279 relating to contracts with and discharge of teachers and administrators
 
at the discretion of the charter or innovation zone school operator.
   i.  Be subject to and comply with the provisions of chapter 285 relating to the transportation of students, except that the provisions of section 285.1, subsections 14, 15, 16, and 17, shall not apply.
   j.  Meetings and records of the advisory council are subject to the provisions of chapters 21 and 22.
   j.  Comply with sections 279.9, 280.17A, 280.17B, 280.21B, 280.24, and 280.28, and may suspend or expel a student only as provided in section 282.4. A decision made as provided in section 282.4 is subject to appeal under section 290.1.
   k.  Comply with all statutes and administrative rules relating to student records, including but not limited to section 22.7, subsection 1, and sections 256H.1, 280.19A, 280.25, and 280.29, and shall submit data to the department for purposes of the department’s comprehensive management information system.
   l.  Comply with the requirements of chapter 283A.
   m.  Comply with any statewide accountability requirements in statute or administrative rule governing high school graduation requirements, the core curriculum, core content standards, and assessments. The charter school or innovation zone school shall issue high school diplomas to students who successfully meet the graduation requirements of the charter school or innovation zone school.
   6.  Notwithstanding subsection 2, a charter school or innovation zone school shall meet the requirements of section 256.7, subsection 21.
   8.  A charter school or innovation zone consortium may
 
shall enter into contracts in accordance with chapter 26.
   Sec. ___.  Section 256F.4, subsections 3 and 4, Code 2013, are amended by striking the subsections and inserting in lieu thereof the following:
   3.  The primary focus of a charter or innovation zone school shall be to provide a comprehensive program of instruction for at least one grade or age group from five through twenty-one years of age.
   4.  A charter or innovation zone school is a municipality for the purposes of tort liability under chapter 670.
   Sec. ___.  Section 256F.5, Code 2013, is amended by striking the section and inserting in lieu thereof the following:
   256F.5  Application.
   1.  An application to operate a charter or innovation zone school pursuant to this chapter shall include but not be limited to the following:
   a.  A business plan that documents the proposed charter or innovation zone school’s mission statement; school purposes; program design; description of a graduation plan, where applicable; financial plan; governance and management structure; and background and experience of the applicants and the initial board and instructional staff, plus any other information the authorizer requests. An applicant shall file a separate application for each school the applicant intends to operate.
   b.  A statement of assurances of legal compliance prescribed by the state board.
   c.  The applicant’s ability to implement the procedures and satisfy the criteria for operating a school under this chapter.
   d.  The measures that will be implemented to provide for oversight of the charter or innovation zone school’s academic, financial, and operational performance, and to ensure compliance with the terms of any written contract entered into by the charter or innovation zone school board of directors and the state board.
   e.  A statement of support or nonsupport from the board of directors of the school district, in which the charter or innovation zone school would be located. The statement shall be submitted to the applicant in a timely manner by the school district board.
   f.  A statement demonstrating community support.
   g.  A statement of admission policies and procedures.
   h.  The types and amounts of insurance liability coverage to be obtained by the charter or innovation zone school.
   i.  How special instruction, programs, and services for children requiring special education and English language learners under chapter 256B and section 280.4 will be made available and a description of the financial parameters within which the special instruction, programs, and services will be made available.
   2.  If the applicant includes a school district pursuant to section 256F.2, subsection 1, paragraph “a”, “b”, “d”, “f”, “h”, “i”, or “j”, that will, under the plan submitted, convert an existing attendance center operated by the school district into a charter or innovation zone school in accordance with this chapter, the application shall demonstrate the support of at least fifty percent of the teachers employed at the school on the date of the submission of the application and fifty percent of the parents or guardians voting whose children are enrolled at the school, provided that a majority of the parents or guardians eligible to vote participate in the ballot process, according to procedures established by rules of the state board. Conversion of an existing school to a charter or innovation zone school if approved pursuant to this chapter shall occur at the beginning of an academic year.
   3.
  a.  The authorizer shall approve or disapprove an application within ninety business days of receipt of the application. However, the state board of regents or a local community college board of directors is ineligible to approve an application submitted by a consortium that includes the state board of regents or the local community college board of directors.
   b.  If the application is denied, the authorizer shall notify the applicant of the specific deficiencies in writing and the applicant shall have twenty business days to address the deficiencies to the authorizer’s satisfaction.
   (1)  If the applicant addresses the deficiencies within the time specified, the authorizer shall at its next regularly scheduled meeting make a final decision to approve or disapprove the application.
   (2)  If the applicant fails to address the deficiencies in the time specified, the authorizer shall notify the applicant that the application is denied and the decision of the state board or the state board of regents is final agency action under chapter 17A. If a local community college board of directors disapproves the application under this subparagraph (2), the decision may be appealed to the state board or the state board of regents.
   c.  An applicant whose application is denied pursuant to the process specified in this subsection shall not submit another application until the expiration of at least one calendar year after notification of the disapproval of the application. 
   4.  The authorizer shall establish criteria for application approval that at a minimum consider the following:
   a.  A comprehensive review of the application.

   b.  The available capacity and infrastructure identified in the plan.
   c.  Contracting process specified in the plan.
   d.  Ongoing oversight and evaluation processes relating to administration and staffing.
   e.  Charter or innovation zone school contract and contract renewal criteria and processes.
   5.  Approval of an application and renewal of a charter by an authorizer shall not be conditioned upon the bargaining unit status of the employees of the school.
   Sec. ___.  Section 256F.6, Code 2013, is amended by striking the section and inserting in lieu thereof the following:
   256F.6  Formation of school —— board.
   1.  An operator who successfully completes the orientation program required pursuant to section 256F.3A, subsection 1, before entering into a contract or other agreement for professional or other services, goods, or facilities, shall incorporate as a nonprofit corporation under chapter 504 and shall establish an initial board of directors composed of at least five voting members, who are not related parties, until a timely election for members of the ongoing charter or innovation zone school board of directors is held according to the school’s articles and bylaws.
   2.  Members of the charter or innovation zone school board of directors established under the school’s articles and bylaws shall be elected before the school completes its third year of operation. The articles and bylaws shall require that the board be composed of not less than five voting members. The articles and bylaws shall include clear policies regarding conflicts of interest, standards of responsibility, and obedience to law, fairness, and honesty.
   3.  Staff members employed at the school and all parents or guardians of children enrolled in the school are the voters eligible to elect the members of the school’s board of directors.
   4.  A charter or innovation zone school shall notify eligible voters of the school board election dates at least thirty days before the election. Board elections shall be held during the school year but may not be conducted on days when the school is closed for holidays or vacations.
   5.
  a.  Any charter or innovation zone school board of directors shall be composed of the following:
   (1)  Notwithstanding section 279.7A, at least one licensed teacher employed at the school.
   (2)  At least one parent or legal guardian of a student enrolled in the school who is not an employee of the school.
   (3)  At least one interested community member who is not employed by the school and does not have a child enrolled in the school.
   b.  The majority of members on the board may be teachers, notwithstanding section 279.7A.
   c.  The chief financial officer and the chief administrator of the charter or innovation zone school, if elected, shall only serve as ex officio, nonvoting board members.
   d.  Charter or innovation zone school employees shall not serve on the board except as provided in this subsection. 
   e.  Except as provided in section 279.7A, contractors providing facilities, goods, or services to a charter or innovation zone school shall not serve on the board.
   f.  Board articles and bylaws shall outline the process and procedures for changing the board’s governance model, consistent with chapter 504.
   6.  A charter or innovation zone school board may change the governance model set forth in the application or in the articles and bylaws of the charter or innovation zone school only if the change conforms with this section and a majority of the board approves the change; the licensed teachers employed by the school approve the change; and the authorizer approves the change.
   7.
  a.  The authorizer may permit a charter or innovation zone school board to expand the operation of the charter or innovation zone school to additional sites or to add grades at the school beyond those described in the operator’s approved application only after submitting a supplemental affidavit for approval to the authorizer in a form and manner prescribed by the authorizer. The supplemental affidavit shall include the following:
   (1)  A proposed expansion plan that demonstrates need and projected enrollment.
   (2)  Documentation that the expansion is warranted, at a minimum, by longitudinal data demonstrating students’ improved academic performance and growth on student assessments.
   (3)  Documentation that the school is financially sound and the financing the school needs to implement the proposed expansion exists.
   (4)  Documentation that the school has the governance structure and management capacity to carry out the expansion.

   b.  The authorizer shall have sixty business days to review and comment on the supplemental affidavit. The authorizer shall notify the charter or innovation zone school board of any deficiencies in the supplemental affidavit and the charter or innovation zone school board shall have twenty business days to address, to the authorizer’s satisfaction, any deficiencies in the supplemental affidavit. The school shall not expand to additional sites or add grades until the authorizer approves the supplemental affidavit. The authorizer’s approval or disapproval of a supplemental affidavit is final agency action.
   8.  The charter or innovation zone school board of directors is a government or governmental body for purposes of chapters 21 and 22.
   9.  Except as provided in subsection 5, members of the charter or innovation zone school board are subject to section 279.7A.
   Sec. ___.  Section 256F.8, Code 2013, is amended by striking the section and inserting in lieu thereof the following:
   256F.8  Audit report.
   1.  The charter or innovation zone school shall annually submit an audit report to the authorizer by December 31.
   2.  The charter or innovation zone school, with the assistance of the auditor conducting the audit, shall include with the report a copy of all charter or innovation zone school agreements for corporate management services. If the entity that provides the professional services to the charter or innovation zone school is exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity must file with the state board by February 15 a copy of the annual return required under section 6033 of the Internal Revenue Code of 1986.
   3.  If the audit report finds that a material weakness exists in the financial reporting systems of a charter or innovation zone school, the charter or innovation zone school shall submit a written report to the authorizer at its first annual meeting explaining how the material weakness will be resolved. An auditor conducting the audit of the charter or innovation zone school, as a condition of providing financial services to a charter or innovation zone school, shall agree to make available information about a charter or innovation zone school’s financial audit to the authorizer upon request.
   Sec. ___.  Section 256F.9, Code 2013, is amended by striking the section and inserting in lieu thereof the following:
   256F.9  Admission requirements.
   1.  A charter or innovation zone school may limit admission to the following:
   a.  Students within an age group or grade level.
   b.  Students who are either at risk of dropping out or have dropped out of school.
   c.  Residents of a specific geographic area in which the school is located when the majority of students served by the school are eligible for free and reduced price meals under the federal National School Lunch Act and the federal Child Nutrition Act of 1966, 42 U.S.C. § 1751-1785.
   2.  A charter or innovation zone school shall enroll an eligible student who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level, or building. In such case, students shall be accepted by lot. The charter or innovation zone school shall develop and publish a lottery policy and process for use when accepting students by lot.
   3.  A charter or innovation zone school shall give enrollment preference to a sibling of an enrolled student and to a foster child of that student’s parents and may give preference for enrolling children of the school’s staff before accepting other students by lot.
   4.  A charter or innovation zone school shall not limit admission to students on the basis of intellectual ability, measures of achievement or aptitude, or athletic ability and shall not establish any criteria or requirements for admission that are inconsistent with this section.
   5.  The charter or innovation zone school shall not distribute any services or goods of value to students, parents, or guardians as an inducement, term, or condition of enrolling a student in a charter or innovation zone school.
   Sec. ___.  Section 256F.10, Code 2013, is amended by striking the section and inserting in lieu thereof the following:
   256F.10  Employment and other operating matters.
   A charter or innovation zone school shall employ or contract with necessary teachers and administrators, as defined by chapter 256, who hold valid licenses and endorsements to perform the particular service for which they are employed in the school. The school may employ necessary employees who are not required to hold teaching licenses to perform duties other than teaching and may contract for other services.
   Sec. ___.  NEW SECTION.  256F.11  Leased space.
   If space to be leased is constructed as a school facility, a charter or innovation zone school may lease such space from a school district or other public organization; private, nonprofit nonsectarian organization; private property owner; or a sectarian organization.
   Sec. ___.  NEW SECTION.  256F.12  Affiliated nonprofit building corporation.
   1.  A charter or innovation zone school may organize an affiliated nonprofit building corporation to renovate or purchase an existing facility to serve as a school or to construct a new school facility as provided in subsection 4 or 5.
   2.  An affiliated nonprofit building corporation shall meet all of the following conditions:
   a.  Be incorporated under chapter 504 and comply with applicable internal revenue service regulations.
   b.  Submit annually to the authorizer a list of current board members and a copy of the corporation’s annual audit.
   3.  An affiliated nonprofit building corporation shall not serve as the leasing agent for property or facilities it does not own. The state is immune from liability resulting from a contract between a charter or innovation zone school and an affiliated nonprofit building corporation.
   4.  A charter or innovation zone school may organize an affiliated nonprofit building corporation to renovate or purchase an existing facility to serve as a school if the charter or innovation zone school meets the following criteria:
   a.  Has been operating for at least five consecutive school years.
   b.  Has had a net positive unreserved general fund balance as of June 30 in the preceding five fiscal years.
   c.  Has a long-range strategic and financial plan.
   d.  Completes a feasibility study of available buildings.
   e.  Documents enrollment projections and the need to use an affiliated nonprofit building corporation to renovate or purchase an existing facility to serve as a school.
   5.  A charter or innovation zone school may organize an affiliated nonprofit building corporation to construct a new school facility if the charter school meets the following conditions:
   a.  Lacks facilities available to serve as a school.
   b.  Has been operating for at least eight consecutive school years.

   c.  Has had a net positive unreserved general fund balance as of June 30 in the preceding eight fiscal years.
   d.  Completes a feasibility study of facility options.
   e.  Has a long-range strategic and financial plan that includes enrollment projections and demonstrates the need for constructing a new school facility.
   Sec. ___.  NEW SECTION.  256F.13  Collective bargaining.
   Employees of the board of directors of a charter or innovation zone school may, if otherwise eligible, organize under chapter 20 and comply with its provisions. The board of directors of a charter or innovation zone school is a public employer, for the purposes of chapter 20, upon formation of one or more bargaining units at the school. Bargaining units at the school shall be separate from any other units within the school district in which the charter or innovation zone school is located, except that bargaining units may remain part of the appropriate bargaining unit of the school district within which the charter or innovation zone school is located if the employees of the charter or innovation zone school, the board of directors of the charter or innovation zone school, the exclusive representative of the appropriate bargaining unit in the school district, and the board of the school district agree to include the employees in the appropriate bargaining unit of the school district.
   Sec. ___.  NEW SECTION.  256F.14  Teacher retirement.
   Teachers in a charter or innovation zone school are public school teachers for the purposes of chapter 97B.
   Sec. ___.  NEW SECTION.  256F.15  Causes for nonrenewal or termination of charter or innovation zone school contract.
   1.  The authorizer may decline to renew a contract entered into with the board of directors of a charter or innovation zone school at the end of the contract term for any ground listed in subsection 3. The authorizer may unilaterally terminate a contract during the term of the contract for any ground listed in subsection 3. 
   2.  At least sixty business days before not renewing or terminating a contract, the authorizer shall notify the board of directors of the charter or innovation zone school of the proposed action in writing. The notice shall state the grounds for the proposed action in reasonable detail and that the charter or innovation zone school’s board of directors may request in writing a hearing before the authorizer within fifteen business days of receiving notice of nonrenewal or termination of the contract. Failure by the board of directors to make a written request for a hearing within the time specified shall be treated as acquiescence to the proposed action. Upon receiving a timely written request for a hearing, the authorizer shall give ten business days’ notice to the charter or innovation zone school’s board of directors of the hearing date. The authorizer shall conduct the hearing before taking final action. The authorizer shall take final action to renew or not renew a contract no later than twenty business days before the proposed date for terminating the contract or the end date of the contract.
   3.  A charter or innovation zone school contract entered into with the authorizer may be terminated or not renewed by the authorizer upon any of the following grounds:
   a.  Failure to meet the requirements for student performance contained in the contract.
   b.  Failure to meet generally accepted standards of fiscal management.
   c.  Violations of law.
   d.  Other good cause shown, including but not limited to the existence of one or more other grounds for revocation as specified in the contract.
   4.  If a contract is terminated or not renewed on grounds specified in subsection 3, the school shall be dissolved according to rules adopted by the authorizer, and the assets of the charter or innovation zone school shall be disposed of according to the applicable provisions of chapter 504.
   5.  The authorizer, after providing reasonable notice to the board of directors of a charter or innovation zone school, and after providing an opportunity for a public hearing, may terminate the existing contract with the charter or innovation zone school board if the charter or innovation zone school has a history of the following:
   a.  Failure to meet student performance requirements consistent with state law.
   b.  Financial mismanagement or gross failure to meet generally accepted standards of fiscal management.
   c.  Violations of the law.
   Sec. ___.  NEW SECTION.  256F.16  Student enrollment upon nonrenewal or termination of charter or innovation zone school contract.
   If a contract is not renewed or is terminated according to section 256F.15, a student who attended the charter or innovation zone school may enroll in the district of residence or may submit an application to a nonresident district according to section 282.18 at any time, and shall be determined to have shown “good cause” for purposes of section 282.18. Applications and notices required by section 282.18 shall be processed and provided in a prompt manner. The application and notice deadlines in section 282.18 do not apply under these circumstances. The charter or innovation zone school shall transfer the student’s educational records within ten business days of the charter or innovation zone school’s closure to the student’s school district of enrollment.
   Sec. ___.  NEW SECTION.  256F.17  Extent of specific legal authority.
   1.  A charter or innovation zone school board may sue and be sued.
   2.  A charter or innovation zone school board shall not levy taxes or issue bonds.
   3.  A charter or innovation zone school is a municipality for purposes of chapter 670.
   Sec. ___.  NEW SECTION.  256F.18  Funding.
   A student enrolled in a charter or innovation zone school shall be counted, for state school foundation aid purposes, in the student’s district of residence. A student’s residence, for purposes of this section, means a residence under section 282.1. The board of directors of the district of residence shall pay to the charter or innovation zone school the district cost per pupil, the teacher salary supplement district cost per pupil, the professional development supplement district cost per pupil, and the early intervention supplement district cost per pupil under section 257.10, plus any moneys received for the student as a result of the non-English speaking weighting under section 280.4, subsection 3, for the previous school year multiplied by the district cost per pupil for the previous year. In addition, the board of directors of the district of residence shall pay to the charter or innovation zone school any other per pupil moneys requested under the charter or innovation zone school application approved by the authorizer.
   Sec. ___.  NEW SECTION.  256F.19  Prior charter or innovation zone schools and innovation zones.
   1.  A charter or innovation zone school established prior to July 1, 2013, shall continue to be governed by chapter 256F, Code 2013, until the term of the contract entered into pursuant to section 256F.8, Code 2013, ends.
   2.  This section is repealed July 1, 2019.
   Sec. ___.  Section 282.18, subsection 4, paragraph b, Code 2013, is amended to read as follows:
   b.  For purposes of this section, “good cause” means a change in a child’s residence due to a change in family residence, a change in the state in which the family residence is located, a change in a child’s parents’ marital status, a guardianship or custody proceeding, placement in foster care, adoption, participation in a foreign exchange program, or participation in a substance abuse or mental health treatment program, a change in the status of a child’s resident district such as removal of accreditation by the state board, surrender of accreditation, or permanent closure of a nonpublic school, revocation
 
nonrenewal or termination of a charter
 
or innovation zone school contract as provided in section 256F.8
 
256F.15, the failure of negotiations for a whole grade sharing, reorganization, dissolution agreement or the rejection of a current whole grade sharing agreement, or reorganization plan. If the good cause relates to a change in status of a child’s school district of residence, however, action by a parent or guardian must be taken to file the notification within forty-five days of the last board action or within thirty days of the certification of the election, whichever is applicable to the circumstances.
   Sec. ___.  Section 670.1, subsection 2, Code 2013, is amended to read as follows:
   2.  “Municipality” means city, county, township, school district,
 
charter or innovation zone school, and any other unit of local government except soil and water conservation districts as defined in section 161A.3, subsection 6.
   Sec. ___.  REPEAL.  Section 256F.7, Code 2013, is repealed.>
   2.  By renumbering as necessary.

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NANCY J. BOETTGER

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DAN ZUMBACH

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MICHAEL BREITBACH

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TIM KAPUCIAN

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JERRY BEHN

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RANDY FEENSTRA

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MARK SEGEBART

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JONI ERNST

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DAVID JOHNSON

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CHARLES SCHNEIDER

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SANDRA H. GREINER

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JAKE CHAPMAN

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BILL DIX

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JACK WHITVER

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MARK CHELGREN

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KENT SORENSON

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BILL ANDERSON

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AMY SINCLAIR

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KEN ROZENBOOM