Amend Senate File 423 as follows:
   1.  By striking everything after the enacting clause and inserting: 

<DIVISION I

INSTRUCTIONAL HOURS
   Section 1.  Section 256.7, subsection 19, Code 2013, is amended to read as follows:
   19.  Define the minimum school day as a day consisting of five and one-half hours of instructional time for grades one through twelve. The minimum hours
 
as time that shall be exclusive of the lunch period, but may include passing time between classes. Time spent on parent-teacher conferences shall be considered instructional time. A school or school district may record a day of school with less than the minimum instructional hours as a minimum school day if any of the following apply:
   a.  If emergency health or safety factors require the late arrival or early dismissal of students on a specific day.
   b.  If the total hours of instructional school time for grades one through twelve for any five consecutive school days equal a minimum of twenty-seven and one-half hours, even though any one day of school is less than the minimum instructional hours because of a staff development opportunity provided for the professional instructional staff or because parent-teacher conferences have been scheduled beyond the regular school day. Furthermore, if the total hours of instructional time for the first four consecutive days equal at least twenty-seven and one-half hours because parent-teacher conferences have been scheduled beyond the regular school day, a school or school district may record zero hours of instructional time on the fifth consecutive school day as a minimum school day.
   Sec. 2.  Section 256F.4, subsection 5, Code 2013, is amended to read as follows:
   5.  A charter school or innovation zone school shall provide instruction for at least the number of days
 
hours required by section 279.10, subsection 1, or shall provide at least the equivalent number of total hours.
   Sec. 3.  Section 279.10, subsection 1, Code 2013, is amended to read as follows:
   1.  The school year
 
for each school district and accredited nonpublic school shall begin on the first day of July
 
1 and each regularly established elementary and secondary school shall begin no sooner than a day during the calendar week in which the first day of September falls but no later than the first Monday in December. However, if the first day of September falls on a Sunday, school may begin on a day during the calendar week which immediately precedes the first day of September. School shall continue for at least one hundred eighty days, except as provided in subsection 3, and may be maintained
 
The school calendar shall include not less than one thousand eighty hours of instruction during the entire calendar year. However, if
 
The board of directors of a school district and the authorities in charge of an accredited nonpublic school shall set the number of hours of required attendance for the school year as provided in section 299.1, subsection 2, but the board of directors of a school district shall hold a public hearing on any proposed school calendar prior to adopting the school calendar. If the board of directors of a district
 
or the authorities in charge of an accredited nonpublic school extends the school calendar because inclement weather caused the
 
school district
 
or accredited nonpublic school to temporarily close school during the regular school calendar, the
 
school district
 
or accredited nonpublic school may excuse a graduating senior who has met district or school requirements for graduation from attendance during the extended school calendar. A school corporation may begin employment of personnel for in-service training and development purposes before the date to begin elementary and secondary school.
   Sec. 4.  Section 279.10, subsection 2, Code 2013, is amended to read as follows:
   2.  The board of directors shall hold a public hearing on any proposal
 
relating to the school calendar prior to submitting it to the department of education for approval.
   Sec. 5.  Section 299.1, subsection 2, Code 2013, is amended to read as follows:
   2.  The board of directors of a public school district or the governing body of an accredited nonpublic school shall set the number of days
 
hours of required attendance for the schools under its control. The board of directors of a public school district or the governing body of an accredited nonpublic school may, by resolution, require attendance for the entire time when the schools are in session in any school year and adopt a policy or rules relating to the reasons considered to be valid or acceptable excuses for absence from school.
   Sec. 6.  Section 299.4, subsection 1, Code 2013, is amended to read as follows:
   1.  The parent, guardian, or legal custodian of a child who is of compulsory attendance age, who places the child under competent private instruction under either section 299A.2 or 299A.3, not in an accredited school or a home school assistance program operated by a school district or accredited nonpublic school, shall furnish a report in duplicate on forms provided by the public school district, to the district by the earliest starting date specified in section 279.10, subsection 1

September 1 of the school year in which the child will be under competent private instruction. The secretary shall retain and file one copy and forward the other copy to the district’s area education agency. The report shall state the name and age of the child, the period of time during which the child has been or will be under competent private instruction for the year, an outline of the course of study, texts used, and the name and address of the instructor. The parent, guardian, or legal custodian of a child, who is placing the child under competent private instruction for the first time, shall also provide the district with evidence that the child has had the immunizations required under section 139A.8, and, if the child is elementary school age, a blood lead test in accordance with section 135.105D. The term “outline of course of study” shall include subjects covered, lesson plans, and time spent on the areas of study.
   Sec. 7.  EFFECTIVE DATE.  This division of this Act takes effect July 1, 2014.

DIVISION II

STATE SCHOOL FOUNDATION PROGRAM
   Sec. 8.  Section 257.2, subsection 9, Code 2013, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  Property tax replacement payments received under section 257.16B.
   Sec. 9.  Section 257.4, subsection 1, paragraph a, Code 2013, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (9)  The amount of the school district property tax replacement payment received by the school district under section 257.16B.
   Sec. 10.  Section 257.4, subsection 1, paragraph b, Code 2013, is amended to read as follows:
   b.  For the budget year beginning July 1, 2008, and succeeding budget years, the department of management shall annually determine an adjusted additional property tax levy and a statewide maximum adjusted additional property tax levy rate, not to exceed the statewide average additional property tax levy rate, calculated by dividing the total adjusted additional property tax levy dollars statewide by the statewide total net taxable valuation. For purposes of this paragraph, the adjusted additional property tax levy shall be that portion of the additional property tax levy corresponding to the state cost per pupil multiplied by a school district’s weighted enrollment, and then multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1, and then reduced by the amount of property tax replacement received under section 257.16B. The district shall receive adjusted additional property tax levy aid in an amount equal to the difference between the adjusted additional property tax levy rate and the statewide maximum adjusted additional property tax levy rate, as applied per thousand dollars of assessed valuation on all taxable property in the district. The statewide maximum adjusted additional property tax levy rate shall be annually determined by the department taking into account amounts allocated pursuant to section 257.15, subsection 4. The statewide maximum adjusted additional property tax levy rate shall be annually determined by the department taking into account amounts allocated pursuant to section 257.15, subsection 4, and the balance of the property tax equity and relief fund created in section 257.16A at the end of the calendar year.
   Sec. 11.  Section 257.8, subsections 1 and 2, Code 2013, are amended to read as follows:
   1.  State percent of growth.  The state percent of growth for the budget year beginning July 1, 2010, is two percent. The state percent of growth for the budget year beginning July 1, 2012, is two percent.

The state percent of growth for the budget year beginning July 1, 2013, is two percent. The state percent of growth for the budget year beginning July 1, 2014, is two percent. The state percent of growth for each subsequent budget year shall be established by statute which shall be enacted within thirty days of the submission in the year preceding the base year of the governor’s budget under section 8.21. The establishment of the state percent of growth for a budget year shall be the only subject matter of the bill which enacts the state percent of growth for a budget year.
   2.  Categorical state percent of growth.  The categorical state percent of growth for the budget year beginning July 1, 2010, is two percent. The categorical state percent of growth for the budget year beginning July 1, 2012, is two percent.

The categorical state percent of growth for the budget year beginning July 1, 2013, is two percent. The categorical state percent of growth for the budget year beginning July 1, 2014, is two percent. The categorical state percent of growth for each budget year shall be established by statute which shall be enacted within thirty days of the submission in the year preceding the base year of the governor’s budget under section 8.21. The establishment of the categorical state percent of growth for a budget year shall be the only subject matter of the bill which enacts the categorical state percent of growth for a budget year. The categorical state percent of growth may include state percents of growth for the teacher salary supplement, the professional development supplement, and the early intervention supplement.
   Sec. 12.  Section 257.15, subsection 4, paragraph b, Code 2013, is amended to read as follows:
   b.  After lowering all school district
 
adjusted additional property tax levy rates to the statewide maximum adjusted additional property tax levy rate under paragraph “a”, the department of management shall use any remaining funds at the end of the calendar year to further lower additional property taxes by increasing for the budget year beginning the following July 1, the state foundation base percentage. Moneys used pursuant to this paragraph shall supplant an equal amount of the appropriation made from the general fund of the state pursuant to section 257.16 that represents the increase in state foundation aid.
   Sec. 13.  NEW SECTION.  257.16B  School district property tax replacement payments.
   1.
  For each fiscal year beginning on or after July 1, 2013, there is appropriated from the general fund of the state to the department of education an amount necessary to make all school district property tax replacement payments under this section, as calculated in subsection 2, paragraph “c”.
   2.  For each budget year beginning on or after July 1, 2013, the department of management shall calculate for each school district all of the following:
   a.  The state cost per pupil for the budget year beginning July 1, 2012, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1.
   b.  The state cost per pupil for the budget year multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1.
   c.  The amount of each school district’s property tax replacement payment. Each school district’s property tax replacement payment equals the school district’s weighted enrollment for the budget year multiplied by the remainder of the amount calculated for the school district under paragraph “b” minus the amount calculated for the school district under paragraph “a”.
   3.  School district property tax replacement payments under this section shall be paid by the department of education at the same time and in the same manner as foundation aid is paid and may be included in the monthly payment of state aid under section 257.16, subsection 2.
   Sec. 14.  CODE SECTION 257.8 —— IMPLEMENTATION.  The requirements of section 257.8, subsections 1 and 2, regarding the enactment of bills establishing the regular program state percent of growth and the categorical state percent of growth within thirty days of the submission in the year preceding the base year of the governor’s budget and regarding the subject matter limitation of such bills do not apply to this division of this Act.
   Sec. 15.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.

DIVISION III

SCHOOL DISTRICT FUNDING TERMINOLOGY
   Sec. 16.  Section 256C.4, subsection 1, paragraph f, Code 2013, is amended to read as follows:
   f.  The receipt of funding by a school district for the purposes of this chapter, the need for additional funding for the purposes of this chapter, or the enrollment count of eligible students under this chapter shall not be considered to be unusual circumstances, create an unusual need for additional funds, or qualify under any other circumstances that may be used by the school budget review committee to grant supplemental aid to or establish modified allowable growth
 
supplemental state aid for a school district under section 257.31.
   Sec. 17.  Section 257.2, subsection 1, Code 2013, is amended by striking the subsection.
   Sec. 18.  Section 257.2, subsection 12, Code 2013, is amended to read as follows:
   12.  “State percent of growth” means the percent of growth which is established by statute pursuant to section 257.8, and which is used in determining the allowable growth
 
supplemental state aid.
   Sec. 19.  Section 257.2, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  12A.  “Supplemental state aid” means the amount by which state cost per pupil and district cost per pupil will increase from one budget year to the next.
   Sec. 20.  Section 257.6, subsection 1, paragraph a, subparagraph (5), Code 2013, is amended to read as follows:
   (5)  Resident pupils receiving competent private instruction from a licensed practitioner provided through a public school district pursuant to chapter 299A shall be counted as three-tenths of one pupil. Revenues received by a school district attributed to a school district’s weighted enrollment pursuant to this subparagraph shall be expended for the purpose for which the weighting was assigned under this subparagraph. If the school district determines that the expenditures associated with providing competent private instruction pursuant to chapter 299A are in excess of the revenue attributed to the school district’s weighted enrollment for such instruction in accordance with this subparagraph, the school district may submit a request to the school budget review committee for modified allowable growth
 
supplemental state aid in accordance with section 257.31, subsection 5, paragraph “n”. A home school assistance program shall not provide moneys received pursuant to this subparagraph, nor resources paid for with moneys received pursuant to this subparagraph, to parents or students utilizing the program. Moneys received by a school district pursuant to this subparagraph shall be used as provided in section 299A.12.
   Sec. 21.  Section 257.8, subsections 3, 6, and 7, Code 2013, are amended to read as follows:
   3.  Allowable growth
 
Supplemental state aid calculation.  The department of management shall calculate the regular program allowable growth
 
supplemental state aid for a budget year by multiplying the state percent of growth for the budget year by the regular program state cost per pupil for the base year and shall calculate the special education support services allowable growth
 
supplemental state aid for the budget year by multiplying the state percent of growth for the budget year by the special education support services state cost per pupil for the base year.
   6.  Combined allowable growth
 
supplemental state aid.  The combined allowable growth
 
supplemental state aid per pupil for each school district is the sum of the regular program allowable growth
 
supplemental state aid per pupil and the special education support services allowable growth
 
supplemental state aid per pupil for the budget year, which may be modified as follows:
   a.  By the school budget review committee under section 257.31.
   b.  By the department of management under section 257.36.
   7.  Alternate allowable growth
 
supplemental state aid —— definitions.  For budget years beginning July 1, 2000, and subsequent budget years, references to the terms “allowable growth”
 
“supplemental state aid”, “regular program state cost per pupil”, and “regular program district cost per pupil” shall mean those terms as calculated for those school districts that calculated regular program allowable growth
 
supplemental state aid for the school budget year beginning July 1, 1999, with the additional thirty-eight dollars
 
specified in section 257.8, subsection 4, Code 2013.
   Sec. 22.  Section 257.8, subsections 4 and 5, Code 2013, are amended by striking the subsections.
   Sec. 23.  Section 257.9, subsection 1, paragraph b, Code 2013, is amended to read as follows:
   b.  The total calculated under this subsection shall be divided by the total of the budget enrollments of all school districts for the budget year beginning July 1, 1990, calculated under section 257.6, subsection 4, if section 257.6, subsection 4, had been in effect for that budget year. The regular program state cost per pupil for the budget year beginning July 1, 1991, is the amount calculated by the department of management under this subsection plus an allowable growth
 
a supplemental state aid amount, as defined in this division of this Act, that is equal to the state percent of growth for the budget year multiplied by the amount calculated by the department of management under this subsection.
   Sec. 24.  Section 257.9, subsections 2, 4, 6, 7, 8, 9, and 10, Code 2013, are amended to read as follows:
   2.  Regular program state cost per pupil for 1992-1993 and succeeding years.  For the budget year beginning July 1, 1992, and succeeding budget years, the regular program state cost per pupil for a budget year is the regular program state cost per pupil for the base year plus the regular program allowable growth
 
supplemental state aid for the budget year.
   4.  Special education support services state cost per pupil for 1992-1993 and succeeding years.  For the budget year beginning July 1, 1992, and succeeding budget years, the special education support services state cost per pupil for the budget year is the special education support services state cost per pupil for the base year plus the special education support services allowable growth
 
supplemental state aid for the budget year.
   6.  Teacher salary supplement state cost per pupil.  For the budget year beginning July 1, 2009, for the teacher salary supplement state cost per pupil, the department of management shall add together the teacher compensation allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “h”, Code 2009, and the phase II allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the statewide total budget enrollment for the fiscal year beginning July 1, 2009. The teacher salary supplement state cost per pupil for the budget year beginning July 1, 2010, and succeeding budget years, shall be the amount calculated by the department of management under this subsection for the base year plus an allowable growth
 
a supplemental state aid amount that is equal to the teacher salary supplement categorical state percent of growth, pursuant to section 257.8, subsection 2, for the budget year, multiplied by the amount calculated by the department of management under this subsection for the base year.
   7.  Professional development supplement state cost per pupil.  For the budget year beginning July 1, 2009, for the professional development supplement state cost per pupil, the department of management shall add together the professional development allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “d”, Code 2009, and divide that sum by the statewide total budget enrollment for the fiscal year beginning July 1, 2009. The professional development supplement state cost per pupil for the budget year beginning July 1, 2010, and succeeding budget years, shall be the amount calculated by the department of management under this subsection for the base year plus an allowable growth
 
a supplemental state aid amount that is equal to the professional development supplement categorical state percent of growth, pursuant to section 257.8, subsection 2, for the budget year, multiplied by the amount calculated by the department of management under this subsection for the base year.
   8.  Early intervention supplement state cost per pupil.  For the budget year beginning July 1, 2009, for the early intervention supplement state cost per pupil, the department of management shall add together the early intervention allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 256D.4, Code 2009, and divide that sum by the statewide total budget enrollment for the fiscal year beginning July 1, 2009. The early intervention supplement state cost per pupil for the budget year beginning July 1, 2010, and succeeding budget years, shall be the amount calculated by the department of management under this subsection for the base year plus an allowable growth
 
a supplemental state aid amount that is equal to the early intervention supplement categorical state percent of growth, pursuant to section 257.8, subsection 2, for the budget year, multiplied by the amount calculated by the department of management under this subsection for the base year.
   9.  Area education agency teacher salary supplement state cost per pupil.  For the budget year beginning July 1, 2009, for the area education agency teacher salary supplement state cost per pupil, the department of management shall add together the teacher compensation allocation made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “i”, Code 2009, and the phase II allocation made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the statewide special education support services weighted enrollment for the fiscal year beginning July 1, 2009. The area education agency teacher salary supplement state cost per pupil for the budget year beginning July 1, 2010, and succeeding budget years, shall be the amount calculated by the department of management under this subsection for the base year plus an allowable growth
 
a supplemental state aid amount that is equal to the teacher salary supplement categorical state percent of growth, pursuant to section 257.8, subsection 2, for the budget year, multiplied by the amount calculated by the department of management under this subsection for the base year.
   10.  Area education agency professional development supplement state cost per pupil.  For the budget year beginning July 1, 2009, for the area education agency professional development supplement state cost per pupil, the department of management shall add together the professional development allocation made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “d”, Code 2009, and divide that sum by the statewide special education support services weighted enrollment for the fiscal year beginning July 1, 2009. The area education agency professional development supplement state cost per pupil for the budget year beginning July 1, 2010, and succeeding budget years, shall be the amount calculated by the department of management under this subsection for the base year plus an allowable growth
 
a supplemental state aid amount that is equal to the professional development supplement categorical state percent of growth, pursuant to section 257.8, subsection 2, for the budget year, multiplied by the amount calculated by the department of management under this subsection for the base year.
   Sec. 25.  Section 257.10, subsection 1, Code 2013, is amended to read as follows:
   1.  Regular program district cost per pupil for 1991-1992.  For the budget year beginning July 1, 1991, in order to determine the regular program district cost per pupil for a district, the department of management shall divide the product of the regular program district cost per pupil of the district for the base year, as regular program district cost per pupil would have been calculated under section 442.9, Code 1989, multiplied by its budget enrollment for the base year as budget enrollment would have been calculated under section 442.4, Code 1989, plus the amount added to district cost pursuant to section 442.21, Code 1989, for each school district, by the budget enrollment of the school district for the budget year beginning July 1, 1990, calculated under section 257.6, subsection 4, as if section 257.6, subsection 4, had been in effect for that budget year. The regular program district cost per pupil for the budget year beginning July 1, 1991, is the amount calculated by the department of management under this subsection plus the allowable growth
 
supplemental state aid amount, as defined in this division of this Act, calculated for regular program state cost per pupil, except that if the regular program district cost per pupil for the budget year calculated under this subsection in any school district exceeds one hundred ten percent of the regular program state cost per pupil for the budget year, the department of management shall reduce the regular program district cost per pupil of that district for the budget year to an amount equal to one hundred ten percent of the regular program state cost per pupil for the budget year, and if the regular program district cost per pupil for the budget year calculated under this subsection in any school district is less than the regular program state cost per pupil for the budget year, the department of management shall increase the regular program district cost per pupil of that district to an amount equal to the regular program state cost per pupil for the budget year.
   Sec. 26.  Section 257.10, subsection 2, paragraph a, Code 2013, is amended to read as follows:
   a.  For the budget year beginning July 1, 1992, and succeeding budget years, the regular program district cost per pupil for each school district for a budget year is the regular program district cost per pupil for the base year plus the regular program allowable growth
 
supplemental state aid for the budget year except as otherwise provided in this subsection.
   Sec. 27.  Section 257.10, subsection 4, paragraph a, Code 2013, is amended to read as follows:
   a.  For the budget year beginning July 1, 1992, and succeeding budget years, the special education support services district cost per pupil for the budget year is the special education support services district cost per pupil for the base year plus the special education support services allowable growth
 
supplemental state aid for the budget year.
   Sec. 28.  Section 257.10, subsection 5, Code 2013, is amended to read as follows:
   5.  Combined district cost per pupil.  The combined district cost per pupil for a school district is the sum of the regular program district cost per pupil and the special education support services district cost per pupil. Combined district cost per pupil does not include modified allowable growth
 
supplemental state aid added for school districts that have a negative balance of funds raised for special education instruction programs, modified allowable growth
 
supplemental state aid granted by the school budget review committee for a single school year, or modified allowable growth
 
supplemental state aid added for programs for dropout prevention.
   Sec. 29.  Section 257.10, subsection 9, paragraph a, Code 2013, is amended to read as follows:
   a.  For the budget year beginning July 1, 2009, the department of management shall add together the teacher compensation allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “h”, Code 2009, and the phase II allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the district’s budget enrollment in the fiscal year beginning July 1, 2009, to determine the teacher salary supplement district cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement state allowable growth
 
supplemental state aid amount for the budget year.
   Sec. 30.  Section 257.10, subsection 10, paragraph a, Code 2013, is amended to read as follows:
   a.  For the budget year beginning July 1, 2009, the department of management shall divide the professional development allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “d”, Code 2009, by the district’s budget enrollment in the fiscal year beginning July 1, 2009, to determine the professional development supplement cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years, the professional development supplement district cost per pupil for each school district for a budget year is the professional development supplement district cost per pupil for the base year plus the professional development supplement state allowable growth
 
supplemental state aid amount for the budget year.
   Sec. 31.  Section 257.10, subsection 11, paragraph a, Code 2013, is amended to read as follows:
   a.  For the budget year beginning July 1, 2009, the department of management shall divide the early intervention allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 256D.4, Code 2009, by the district’s budget enrollment in the fiscal year beginning July 1, 2009, to determine the early intervention supplement cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years, the early intervention supplement district cost per pupil for each school district for a budget year is the early intervention supplement district cost per pupil for the base year plus the early development supplement state allowable growth
 
supplemental state aid amount for the budget year.
   Sec. 32.  Section 257.13, subsections 2 and 3, Code 2013, are amended to read as follows:
   2.  The board of directors of a school district that wishes to receive an on-time funding budget adjustment shall adopt a resolution to receive the adjustment and notify the school budget review committee annually, but not earlier than November 1, as determined by the department of education. The school budget review committee shall establish a modified allowable growth
 
supplemental state aid in an amount determined pursuant to subsection 1.
   3.  If the board of directors of a school district determines that a need exists for additional funds exceeding the authorized budget adjustment for on-time funding pursuant to this section, a request for modified allowable growth
 
supplemental state aid based upon increased enrollment may be submitted to the school budget review committee as provided in section 257.31.
   Sec. 33.  Section 257.31, subsection 5, unnumbered paragraph 1, Code 2013, is amended to read as follows:
   If a district has unusual circumstances, creating an unusual need for additional funds, including but not limited to the circumstances enumerated in paragraphs “a” through “n”, the committee may grant supplemental aid to the district from any funds appropriated to the department of education for the use of the school budget review committee for the purposes of this subsection. The school budget review committee shall review a school district’s unexpended fund balance prior to any decision regarding unusual finance circumstances. Such aid shall be miscellaneous income and shall not be included in district cost. In addition to or as an alternative to granting supplemental aid the committee may establish a modified allowable growth
 
supplemental state aid for the district by increasing its allowable growth
 
supplemental state aid. The school budget review committee shall review a school district’s unspent balance prior to any decision to increase modified allowable growth
 
supplemental state aid under this subsection.
   Sec. 34.  Section 257.31, subsection 6, paragraph a, Code 2013, is amended to read as follows:
   a.  The committee shall establish a modified allowable growth
 
supplemental state aid for a district by increasing its allowable growth
 
supplemental state aid when the district submits evidence that it requires additional funding for removal, management, or abatement of environmental hazards due to a state or federal requirement. Environmental hazards shall include but are not limited to the presence of asbestos, radon, or the presence of any other hazardous material dangerous to health and safety.
   Sec. 35.  Section 257.31, subsection 7, paragraph b, Code 2013, is amended to read as follows:
   b.  Other expenditures, including but not limited to expenditures for salaries or recurring costs, are not authorized under this subsection. Expenditures authorized under this subsection shall not be included in allowable growth
 
supplemental state aid or district cost, and the portion of the unexpended fund balance which is authorized to be spent shall be regarded as if it were miscellaneous income. Any part of the amount not actually spent for the authorized purpose shall revert to its former status as part of the unexpended fund balance.
   Sec. 36.  Section 257.31, subsection 14, paragraph b, subparagraph (3), Code 2013, is amended to read as follows:
   (3)  A school district is only eligible to receive supplemental aid payments during the budget year if the school district certifies to the school budget review committee that for the year following the budget year it will notify the school budget review committee to instruct the director of the department of management to increase the district’s allowable growth
 
supplemental state aid and will fund the allowable growth
 
supplemental state aid increase either by using moneys from its unexpended fund balance to reduce the district’s property tax levy or by using cash reserve moneys to equal the amount of the deficit that would have been property taxes and any part of the state aid portion of the deficit not received as supplemental aid under this subsection. The director of the department of management shall make the necessary adjustments to the school district’s budget to provide the modified allowable growth
 
supplemental state aid and shall make the supplemental aid payments.
   Sec. 37.  Section 257.32, subsection 1, paragraph a, Code 2013, is amended to read as follows:
   a.  An area education agency budget review procedure is established for the school budget review committee created in section 257.30. The school budget review committee, in addition to its duties under section 257.31, shall meet and hold hearings each year to review unusual circumstances of area education agencies, either upon the committee’s motion or upon the request of an area education agency. The committee may grant supplemental aid to the area education agency from funds appropriated to the department of education for area education agency budget review purposes, or an amount may be added to the area education agency special education support services allowable growth
 
supplemental state aid for districts in an area or an additional amount may be added to district cost for media services or educational services for all districts in an area for the budget year either on a temporary or permanent basis, or both.
   Sec. 38.  Section 257.37, subsections 1 and 3, Code 2013, are amended to read as follows:
   1.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for media services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for media services in the base year shall be divided by the enrollment served in the base year to provide an area media services cost per pupil in the base year, and the department of management shall compute the state media services cost per pupil in the base year which is equal to the average of the area media services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the allowable growth
 
supplemental state aid for media services in the budget year by multiplying the state media services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for media services cost in the budget year equals the area media services cost per pupil in the base year plus the allowable growth
 
supplemental state aid for media services in the budget year times the enrollment served in the budget year. Funds shall be paid to area education agencies as provided in section 257.35.
   3.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for educational services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for educational services in the base year shall be divided by the enrollment served in the area in the base year to provide an area educational services cost per pupil in the base year, and the department of management shall compute the state educational services cost per pupil in the base year, which is equal to the average of the area educational services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the allowable growth
 
supplemental state aid for educational services by multiplying the state educational services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for educational services for the budget year equals the area educational services cost per pupil for the base year plus the allowable growth
 
supplemental state aid for educational services in the budget year times the enrollment served in the area in the budget year. Funds shall be paid to area education agencies as provided in section 257.35.
   Sec. 39.  Section 257.37A, subsection 1, paragraph a, Code 2013, is amended to read as follows:
   a.  For the budget year beginning July 1, 2009, the department of management shall add together the teacher compensation allocation made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “i”, Code 2009, and the phase II allocation made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the special education support services weighted enrollment in the fiscal year beginning July 1, 2009, to determine the area education agency teacher salary supplement cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years, the area education agency teacher salary supplement district cost per pupil for each area education agency for a budget year is the area education agency teacher salary supplement district cost per pupil for the base year plus the area education agency teacher salary supplement state allowable growth
 
supplemental state aid amount for the budget year.
   Sec. 40.  Section 257.37A, subsection 2, paragraph a, Code 2013, is amended to read as follows:
   a.  For the budget year beginning July 1, 2009, the department of management shall divide the area education agency professional development supplement made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “d”, Code 2009, by the special education support services weighted enrollment in the fiscal year beginning July 1, 2009, to determine the professional development supplement cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years, the area education agency professional development supplement district cost per pupil for each area education agency for a budget year is the area education agency professional development supplement district cost per pupil for the base year plus the area education agency professional development supplement state allowable growth
 
supplemental state aid amount for the budget year.
   Sec. 41.  Section 257.38, subsection 1, unnumbered paragraph 1, Code 2013, is amended to read as follows:
   Boards of school districts, individually or jointly with boards of other school districts, requesting to use modified allowable growth
 
supplemental state aid for programs for returning dropouts and dropout prevention, shall submit comprehensive program plans for the programs and budget costs, including annual requests for modified allowable growth
 
supplemental state aid for funding the programs, to the department of education as a component of the comprehensive school improvement plan submitted to the department pursuant to section 256.7, subsection 21. The program plans shall include:
   Sec. 42.  Section 257.38, subsection 2, Code 2013, is amended to read as follows:
   2.  Program plans shall identify the parts of the plan that will be implemented first upon approval of the request. If a district is requesting to use modified allowable growth
 
supplemental state aid to finance the program, the school district shall not identify more than five percent of its budget enrollment for the budget year as returning dropouts and potential dropouts.
   Sec. 43.  Section 257.40, Code 2013, is amended to read as follows:
   257.40  Approval of programs for returning dropouts and dropout prevention —— annual report.
   1.  The board of directors of a school district requesting to use modified allowable growth
 
supplemental state aid for programs for returning dropouts and dropout prevention shall submit requests for modified at-risk allowable growth
 
supplemental state aid, including budget costs, to the department not later than December 15 of the year preceding the budget year during which the program will be offered. The department shall review the request and shall prior to January 15 either grant approval for the request or return the request for approval with comments of the department included. An unapproved request for a program may be resubmitted with modifications to the department not later than February 1. Not later than February 15, the department shall notify the department of management and the school budget review committee of the names of the school districts for which programs using modified allowable growth
 
supplemental state aid for funding have been approved and the approved budget of each program listed separately for each school district having an approved request.
   2.  Beginning January 15, 2007, the department shall submit an annual report to the chairpersons and ranking members of the senate and house education committees that includes the ways school districts in the previous school year used modified allowable growth
 
supplemental state aid approved under subsection 1; identifies, by grade level, age, and district size, the students in the dropout and dropout prevention programs for which the department approves a request; describes school district progress toward increasing student achievement and attendance for the students in the programs; and describes how the school districts are using the revenues from the modified allowable growth
 
supplemental state aid to improve student achievement among minority subgroups.
   Sec. 44.  Section 257.41, subsections 1 and 3, Code 2013, are amended to read as follows:
   1.  Budget.  The budget of an approved program for returning dropouts and dropout prevention for a school district, after subtracting funds received from other sources for that purpose, shall be funded annually on a basis of one-fourth or more from the district cost of the school district and up to three-fourths by an increase in allowable growth
 
supplemental state aid as defined in section 257.8. Annually, the department of management shall establish a modified allowable growth
 
supplemental state aid for each such school district equal to the difference between the approved budget for the program for returning dropouts and dropout prevention for that district and the sum of the amount funded from the district cost of the school district plus funds received from other sources.
   3.  Limitation.  For the fiscal year beginning July 1, 2013, and each succeeding fiscal year, the ratio of the amount of modified allowable growth
 
supplemental state aid established by the department of management compared to the school district’s total regular program district cost shall not exceed two and one-half percent. However, if the school district’s highest such ratio so determined for any fiscal year beginning on or after July 1, 2009, but before July 1, 2013, exceeded two and one-half percent, the ratio may exceed two and one-half percent but shall not exceed the highest such ratio established during that period.
   Sec. 45.  Section 257.46, subsection 2, Code 2013, is amended to read as follows:
   2.  The remaining portion of the budget shall be funded by the thirty-eight dollar increase in allowable growth
 
supplemental state aid, as defined in this division of this Act, for the school budget year beginning July 1, 1999, multiplied by a district’s budget enrollment. The thirty-eight dollar increase for the school budget year beginning July 1, 1999, shall increase in subsequent years by each year’s state percent of growth. School districts shall annually report the amount expended for a gifted and talented program to the department of education. The proportion of a school district’s budget which corresponds to the thirty-eight dollar increase in allowable growth
 
supplemental state aid, as defined in this division of this Act, for the school budget year beginning July 1, 1999, added to the amount in subsection 1, shall be utilized exclusively for a school district’s gifted and talented program.
   Sec. 46.  Section 273.23, subsection 8, Code 2013, is amended to read as follows:
   8.  For the school year beginning on the effective date of an area education agency reorganization as provided in this subchapter, the special education support services cost per pupil shall be based upon the combined base year budgets for special education support services of the area education agencies that reorganized to form the newly formed area education agency, divided by the total of the weighted enrollment for special education support services in the reorganized area education agency for the base year plus the allowable growth
 
supplemental state aid amount per pupil for special education support services for the budget year as calculated in section 257.8.
   Sec. 47.  Section 280.4, subsection 3, Code 2013, is amended to read as follows:
   3.  In order to provide funds for the excess costs of instruction of limited English proficient students above the costs of instruction of pupils in a regular curriculum, students identified as limited English proficient shall be assigned an additional weighting of twenty-two hundredths, and that weighting shall be included in the weighted enrollment of the school district of residence for a period not exceeding four years. However, the school budget review committee may grant supplemental aid or modified allowable growth
 
supplemental state aid to a school district to continue funding a program for students after the expiration of the four-year period.
   Sec. 48.  APPLICABILITY.  This division of this Act applies to school budget years beginning on or after July 1, 2014.

DIVISION IV

IOWA ONLINE INITIATIVE —— FEES
   Sec. 49.  Section 256.42, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  8.
  a.  Beginning July 1, 2016, the department shall establish fees payable by school districts and accredited nonpublic schools participating in the initiative. Fees collected pursuant to this subsection shall be deposited in the general fund of the state and shall be established so as not to exceed the cost of administering this section. 
   b.  Costs of administering this section include the costs of providing professional development necessary to prepare teachers to participate in the initiative, providing supervision of usage of the initiative by licensed teachers, acquiring and maintaining equipment and services necessary for use of the initiative, facilitating access to the initiative by school districts and accredited nonpublic schools, and necessary recordkeeping and accounting. Costs of administering this section do not include any of the following:
   (1)  Costs of course development.
   (2)  Costs of purchasing access to course materials unless such costs are charged on the basis of usage.

DIVISION V

TRAINING AND EMPLOYMENT OF TEACHERS
   Sec. 50.  Section 261.2, subsection 8, Code 2013, is amended to read as follows:
   8.  Submit by January 15 annually a report to the general assembly which provides, by program, the number of individuals who received loan forgiveness in the previous fiscal year, the amount paid to individuals under sections 261.23,
 
and 261.73, and 261.112, and the institutions from which individuals graduated, and that includes any proposed statutory changes and the commission’s findings and recommendations.
   Sec. 51.  NEW SECTION.  261.110  Teach Iowa scholar program.
   1.  A teach Iowa scholar program is established to provide teach Iowa scholar grants to selected high-caliber teachers. The commission shall administer the program in collaboration with the department of education. 
   2.  An Iowa resident or nonresident applicant shall be eligible for a teach Iowa scholar grant if the applicant meets all of the criteria specified under, or established in accordance with, subsection 3.
   3.  Criteria for eligibility shall be established by the commission and shall include but are not limited to the following:
   a.  The applicant was in the top twenty-five percent academically of students exiting a teacher preparation program approved by the state board of education pursuant to section 256.7, subsection 3, or a similar teacher preparation program in another state, or had earned other comparable academic credentials.
   b.  The applicant is preparing to teach in fields including but not limited to science, technology, engineering, or mathematics; or is preparing to teach in a hard-to-staff subject as identified by the department. The department shall annually identify and designate hard-to-staff subjects for the purpose of this paragraph.
   4.  A selected applicant who meets all of the eligibility requirements of this section shall be eligible for a teach Iowa scholar grant for each year of full-time employment completed in this state as a teacher for a school district, charter school, area education agency, or accredited nonpublic school. A teach Iowa scholar grant shall not exceed four thousand dollars per year per recipient. Grants awarded under this section shall not exceed a total of twenty thousand dollars per recipient over a five-year period.
   5.  The commission, in collaboration with the department of education, shall adopt rules pursuant to chapter 17A to administer this section. The rules shall include but shall not be limited to a process for use by the commission to determine which eligible applicants will receive teach Iowa scholar grants.
   6.  A teach Iowa scholar fund is established in the state treasury. The fund shall be administered by the commission and shall consist of moneys appropriated by the general assembly and any other moneys received by the commission for deposit in the fund. The moneys in the fund are appropriated to the commission for the teach Iowa scholar program. Notwithstanding section 8.33, moneys in the fund at the close of the fiscal year shall not revert to the general fund of the state but shall remain available for expenditure for the teach Iowa scholar program for subsequent fiscal years. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   Sec. 52.  REPEAL.  Section 261.112, Code 2013, is repealed.
   Sec. 53.  SCHOOL YEAR-LONG STUDENT TEACHING FIELD EXPERIENCE REQUIREMENT —— STUDY.
   1.
  a.  Each practitioner preparation program offered at an institution of higher learning governed by the state board of regents shall convene a study committee of education faculty members to study the feasibility of establishing professional development schools for preservice teacher candidates in collaboration with school districts, and the feasibility of requiring students enrolled in practitioner preparation programs to complete a field experience lasting one full school year.
   b.  Each study committee shall evaluate for its institution the following issues relating specifically to a proposed professional development school and relating specifically to a proposed full school year of student teaching field experience:
   (1)  The impact on the likelihood a student will graduate within four years, including but not limited to consideration of the cost to a student, student debt load, and class scheduling.
   (2)  The impact on university faculty and the need to employ more faculty, including the need to deliver coursework and supervision to student teachers in the field.
   (3)  The availability of an adequate number of placements in prekindergarten through grade twelve schools and the impact on a school district, including but not limited to the district’s cost to compensate cooperating teachers.
   (4)  The likely impact on the abilities and performance of a student teacher and whether the benefits outweigh the costs.
   (5)  The likely impact on student achievement of students in the student teacher’s classroom.
   c.  The study committees convened pursuant to paragraph “a” shall submit their findings and recommendations in a report to the state board of regents, the department of education, the board of educational examiners, the governor, and the general assembly by December 2, 2013.
   2.  The Iowa association of independent colleges is encouraged to form a study committee comprised of education faculty members with duties similar to those provided for in subsection 1 for its member institutions which offer approved practitioner preparation programs, and to submit any resulting findings and recommendations to the general assembly by December 2, 2013.
   Sec. 54.  TRANSITION FUNDING PROVISIONS.  On July 1, 2014, any unobligated and unencumbered moneys in the teacher shortage loan forgiveness repayment fund shall revert to the general fund of the state. Any remaining obligations of the teacher shortage loan forgiveness program continuing on or after July 1, 2014, shall be met with moneys in the teach Iowa scholar fund established by section 261.110.
   Sec. 55.  EFFECTIVE DATE.  The following provisions of this division of this Act take effect July 1, 2014:
   1.  The section of this division of this Act amending section 261.2.
   2.  The section of this division of this Act repealing section 261.112.

DIVISION VI

TEACHER AND ADMINISTRATOR DEVELOPMENT SYSTEM
   Sec. 56.  Section 256.7, Code 2013, is amended by adding the following new subsections:
   NEW SUBSECTION.  33.  Adopt rules establishing a statewide system of evaluation and performance review requirements for teachers and a statewide system of evaluation requirements for administrators. The systems shall align with Iowa teaching standards or the Iowa standards for school administrators, as appropriate, and shall use clear and concise evaluation and performance review criteria and descriptors; provide for a fair and balanced use of student outcome measures, comprised of objective, reliable measurers of student growth, classroom observations and student surveys; include a tiered evaluation or performance review system that differentiates at least four tiers of teacher performance; and be applicable to all teachers and school administrators, as appropriate, in a charter school, school district, or area education agency.
   NEW SUBSECTION.  34.
  a.  Develop by July 1, 2015, additional Iowa teaching standards designed specifically for purposes of chapters 279 and 284. The additional standards shall align with nationally accepted teaching standards. The Iowa teaching standards developed pursuant to this paragraph “a” shall be based on significant input from the council on educator development established and convened by the director.
   b.  Develop additional Iowa standards for school administrators designed specifically for purposes of chapters 272 and 284A. The standards shall be based on significant input from Iowa administrators and align with nationally accepted school administrator standards.
   c.  Submit by October 15, 2015, to the general assembly recommendations relating to implementation of the additional standards developed pursuant to this subsection for changes in policy or statute. If implementation of the additional Iowa teaching standards developed pursuant to paragraph “a” or implementation of the additional Iowa standards for school administrators development pursuant to paragraph “b” require a change in policy or statute, the change shall not be made without statutory approval.
   Sec. 57.  Section 256.9, subsections 46 and 51, Code 2013, are amended to read as follows:
   46.  Develop core knowledge and skill criteria, based upon
 
significantly shaped by the Iowa teaching standards
 
and the interstate teacher assessment and support consortium’s model core teaching standards, for the evaluation, the advancement, and for teacher career development purposes pursuant to chapter 284. The criteria shall further define the characteristics of quality teaching as established by the Iowa teaching standards
 
and the interstate teacher assessment and support consortium’s model core teaching standards. The director, in consultation with the board of educational examiners, shall also develop a transition plan for implementation of the career development standards developed pursuant to section 256.7, subsection 25, with regard to licensure renewal requirements. The plan shall include a requirement that practitioners be allowed credit for career development completed prior to implementation of the career development standards developed pursuant to section 256.7, subsection 25.
   51.  Develop, and periodically review and revise as necessary, Iowa standards for school administrators, including knowledge and skill criteria, and develop, based on the Iowa standards for administrators, mentoring and induction, evaluation processes, and professional development plans pursuant to chapter 284A. The criteria shall further define the characteristics of quality administrators as established by the Iowa standards for school administrators.
   Sec. 58.  Section 256.9, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  63.  Do all of the following by July 1, 2015, in order to develop and implement an Iowa educator development system:
   a.  Based upon the standards developed pursuant to section 256.7, subsection 34, the director shall develop core knowledge and skill criteria for the evaluation and advancement of teachers, and for teacher career development purposes pursuant to chapter 284. The criteria shall further define the characteristics of quality teaching as significantly shaped by the Iowa teaching standards and the interstate teacher assessment and support consortium’s model core teaching standards.
   b.  Review and, where necessary, revise the standards and requirements for the evaluator training program established pursuant to section 284.10.
   c.  Develop and implement a coaching and support system for teachers aligned with the Iowa teacher career paths, leadership roles, and compensation framework established pursuant to section 284.15, if enacted.
   d.  Develop and implement a coaching and support system for administrators aligned with the beginning administrator mentoring and induction program created pursuant to section 284A.5.
   Sec. 59.  Section 272.9A, subsection 1, Code 2013, is amended to read as follows:
   1.  Beginning July 1, 2007, requirements
 
Requirements for administrator licensure beyond an initial license shall include completion of a beginning administrator mentoring and induction program and demonstration of competence on the administrator
 
Iowa standards
 
for school administrators adopted pursuant to section 284A.3
 
256.7, subsection 27.
   Sec. 60.  Section 279.14, subsection 1, Code 2013, is amended to read as follows:
   1.  The board shall establish
 
written evaluation criteria and shall
 
establish and annually implement evaluation procedures.

The evaluation criteria and procedures shall be consistent with the statewide system of performance review requirements established by the state board pursuant to section 256.7, subsection 33, and the provisions of chapter 284. If an exclusive bargaining representative has been certified, the board shall negotiate in good faith with respect to evaluation procedures pursuant to chapter 20.
   Sec. 61.  Section 279.23A, Code 2013, is amended to read as follows:
   279.23A  Evaluation criteria and procedures.
   The board shall establish written evaluation criteria and shall establish and annually implement evaluation procedures.

The evaluation criteria and procedures shall be consistent with the statewide system of evaluation requirements for administrators established by the state board pursuant to section 256.7, subsection 33, and with the provisions of chapter 284A. The board shall also establish written job descriptions for all supervisory positions.
   Sec. 62.  Section 284.3, subsections 2 and 3, Code 2013, are amended to read as follows:
   2.  A school board shall provide for the following:
   a.  For purposes of comprehensive evaluations for beginning teachers required to allow beginning teachers to progress to career teachers, standards and criteria that are the Iowa teaching standards specified in subsection 1 and the criteria for the Iowa teaching standards developed by the department in accordance with section 256.9, subsection 46
 
director. These standards and criteria shall be set forth in an instrument provided by the department. The comprehensive evaluation and instrument are not subject to negotiations or grievance procedures pursuant to chapter 20 or determinations made by the board of directors under section 279.14. A local school board and its certified bargaining representative may negotiate, pursuant to chapter 20, evaluation and grievance procedures for beginning teachers that are not in conflict with this chapter. If, in accordance with section 279.19, a beginning teacher appeals the determination of a school board to an adjudicator under section 279.17, the adjudicator selected shall have successfully completed training related to the Iowa teacher standards, the criteria adopted by the state board of education in accordance with subsection 3, and any additional training required under rules adopted by the public employment relations board in cooperation with the state board of education.
   b.  For purposes of performance reviews for teachers other than beginning teachers, evaluations that contain, at a minimum, the Iowa teaching standards specified in subsection 1
 
and the interstate teacher assessment and support consortium’s model core teaching standards, as well as the criteria for the Iowa
 
additional teaching standards developed by the department in accordance with section 256.9, subsection 46
 
state board if implementation of the additional standards receives statutory approval, and a balanced use of student outcome measurers, comprised of objective, reliable measures of student growth, classroom observation, and student surveys. A local school board and its certified bargaining representative may negotiate, pursuant to chapter 20, additional teaching standards and criteria. A local school board and its certified bargaining representative shall negotiate, pursuant to chapter 20, evaluation and grievance procedures for teachers other than beginning teachers that are not in conflict with this chapter.
   3.  The state board shall adopt by rule pursuant to chapter 17A the criteria developed by the department in accordance with section 256.9, subsection 46
 
director.
   Sec. 63.  Section 284.8, subsection 2, Code 2013, is amended to read as follows:
   2.  If a supervisor or an evaluator determines, at any time, as a result of a teacher’s performance that the teacher is not meeting district expectations under the Iowa teaching standards specified in section 284.3, subsection 1, paragraphs “a” through “h”, the criteria for the Iowa teaching standards developed by the department in accordance with section 256.9, subsection 46
 
director, and any other standards or criteria established in the collective bargaining agreement, the evaluator shall, at the direction of the teacher’s supervisor, recommend to the district that the teacher participate in an intensive assistance program. The intensive assistance program and its implementation are subject to negotiation and grievance procedures established pursuant to chapter 20. All school districts shall be prepared to offer an intensive assistance program.
   Sec. 64.  Section 284A.2, subsection 3, Code 2013, is amended to read as follows:
   3.  “Comprehensive evaluation” means a summative evaluation of a beginning administrator conducted by an evaluator in accordance with section 284A.3
 
284A.4 for purposes of determining a beginning administrator’s level of competency for recommendation for licensure based on the Iowa standards for school administrators adopted pursuant to section 256.7, subsection 27.
   Sec. 65.  Section 284A.3, Code 2013, is amended to read as follows:
   284A.3  Iowa standards for school administrators
 
administrator evaluations.
   By July 1, 2008, each school board shall provide for evaluations for administrators under individual professional development plans developed in accordance with section 279.23A, and the Iowa standards for school administrators and related criteria adopted by the state board in accordance with section 256.7, subsection 27. A local school board may establish additional administrator standards and related criteria.

This section is repealed July 1, 2015.
   Sec. 66.  COUNCIL ON EDUCATOR DEVELOPMENT ESTABLISHED.
   1.  The director of the department of education shall establish and convene a council on educator development to review the current teacher and administrator evaluation requirements and the teacher performance review requirements, and to make recommendations to the director regarding improvement to the evaluation and performance review requirements for teachers and to the evaluation requirements for administrators.
   2.  The council shall make recommendations to the director concerning development of the following:
   a.  A holistic vision of teacher and administrator development and dissemination of this vision to schools, school districts, and area education agencies.
   b.  Methods designed to foster a culture of continuous learning and improvement within schools, school districts, and area education agencies with differentiated supports for educators.
   c.  Iowa teaching standards and the administrator standards for school administrators.
   d.  Performance review for teachers and evaluation criteria for teachers and administrators.
   e.  A method for incorporating a fair and balanced use of student outcome measures comprised of objective, reliable measures of student growth, classroom observation, and student surveys, into teacher evaluations.
   f.  A means to differentiate teacher performance into four tiers.
   3.  The council shall be comprised of at least seventeen voting members appointed by the director as follows:
   a.  Eight members representing education stakeholders; four of whom shall be practitioners knowledgeable about the Iowa core curriculum, and four of whom shall be knowledgeable about current education research and practice in educator quality.
   b.  One member representing the department of education, who shall serve as chairperson of the council.
   c.  One member representing the area education agencies.
   d.  One member representing a certified employee organization representing teachers licensed under chapter 272.
   e.  One member representing a statewide organization representing school administrators licensed under chapter 272.
   f.  One member representing rural school districts selected by a statewide organization representing the boards of directors of school districts.
   g.  One member representing an organization made up of Iowa school districts with the largest student enrollments.
   h.  One member representing Iowa’s approved teacher preparation programs.
   i.  One member representing Iowa’s approved administrator preparation programs.
   j.  One member representing parents of Iowa elementary or secondary students.
   k.  Other education stakeholders as determined by the director.

   4.  Four members of the general assembly shall serve as ex officio, nonvoting members of the council, with one member to be appointed by each of the following: the majority leader of the senate, the minority leader of the senate, the speaker of the house of representatives, and the minority leader of the house of representatives.
   5.  The council shall submit its findings and recommendations to the state board of education, the governor, and the general assembly by January 1, 2015.
   6.  The director shall consider the findings and recommendations of the council to revise evaluator training in accordance with section 256.9, subsection 63; and to develop a statewide system of performance review requirements for teachers and a statewide system of evaluation requirements for administrators which the director shall submit to the state board of education for approval.

DIVISION VII

IOWA TEACHER CAREER AND COMPENSATION MATTERS
   Sec. 67.  Section 284.7, subsection 1, paragraph a, subparagraph (2), Code 2013, is amended to read as follows:
   (2)  Beginning July 1, 2008
 
2014, the minimum salary for a beginning teacher shall be twenty-eight
 
thirty-three thousand
 
five hundred dollars.
   Sec. 68.  Section 284.7, subsection 1, paragraph b, subparagraph (2), Code 2013, is amended by striking the subparagraph.
   Sec. 69.  EFFECTIVE DATE.  This division of this Act takes effect July 1, 2014.

DIVISION VIII

TRANSPORTATION ASSISTANCE AID
   Sec. 70.  Section 257.31, subsection 17, paragraph a, Code 2013, is amended to read as follows:
   a.  If a district’s average transportation costs per pupil exceed the state average transportation costs per pupil determined under paragraph “c” by one hundred fifty
 
seventy percent, the committee may grant transportation assistance aid to the district. Such aid shall be miscellaneous income and shall not be included in district cost.
   Sec. 71.  APPLICABILITY.  This division of this Act applies to school budget years beginning on or after July 1, 2014.

DIVISION IX

INDEPENDENT ACCREDITATION OF NONPUBLIC SCHOOLS
   Sec. 72.  Section 256.11, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  16.
  a.  Notwithstanding subsections 1 through 12, a nonpublic school may be accredited by an approved independent accrediting agency instead of by the state board as provided in this subsection. The state board shall maintain a list of approved independent accrediting agencies comprised of at least six regional or national nonprofit, nongovernmental agencies recognized as reliable authorities concerning the quality of education offered by a school and shall publish the list of independent accrediting agencies on the department’s internet site. The list shall include accrediting agencies that, as of January 1, 2013, accredited a nonpublic school in this state that was concurrently accredited under this section; and any agency that has a formalized partnership agreement with another agency on the list and has member schools in this state as of January 1, 2013.
   b.  A nonpublic school that participates in the accreditation process offered by an independent accrediting agency on the approved list published pursuant to paragraph “a” shall be deemed to meet the education standards of this section. However, such a school shall comply with statutory health and safety requirements for school facilities.
   c.  If the state board takes preliminary action to remove an agency from the approved list published on the department’s internet site pursuant to paragraph “a”, the department shall, at least one year prior to removing the agency from the approved list, notify the nonpublic schools participating in the accreditation process offered by the agency of the state board’s intent to remove the accrediting agency from its approved list of independent accrediting agencies. The notice shall also be posted on the department’s internet site and shall contain the proposed date of removal. The nonpublic school shall attain accreditation under this subsection or subsections 1 through 12 not later than one year following the date on which the state board removes the agency from its list of independent accrediting agencies.

DIVISION X

COMPETENCY-BASED TASK FORCE —— GRANT PROGRAM
   Sec. 73.  NEW SECTION.  256.24  Competency-based education grant program.
   1.  Contingent on a specific appropriation for these purposes, the department shall establish a competency-based education grant program to award grants to not more than ten school districts annually for purposes of developing, implementing, and evaluating competency-based education pilot and demonstration projects.
   2.  The department shall develop grant application, selection, and evaluation criteria.
   3.  Each pilot or demonstration project shall be conducted for a minimum of one year, but may be conducted for multiple school years as proposed by the applicant and approved by the department.
   4.  Grant moneys shall be distributed to selected school districts by the department no later than December 1, 2013. Grant amounts shall be distributed as determined by the department.
   5.  The department shall submit progress reports analyzing the status and preliminary findings of the projects to the state board, the governor, and the general assembly by January 15 annually. The department shall summarize the projects’ findings, including student achievement results, and submit the summary and any recommendations in a final report to the state board, the governor, and the general assembly by January 15, 2019.
   Sec. 74.  2012 Iowa Acts, chapter 1119, section 2, subsection 2, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  f.  Develop a draft strategic plan and proposed timeline for statewide implementation of competency-based learning for consideration by the general assembly.
   Sec. 75.  EFFECTIVE UPON ENACTMENT.  The following provision or provisions of this division of this Act, being deemed of immediate importance, takes effect upon enactment:
   1.  The section of this Act amending 2012 Iowa Acts, chapter 1119, section 2, subsection 2.>

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JONI K. ERNST