House File 565 S-3312 Amend House File 565, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. Section 256C.4, subsection 1, paragraph e, Code 5 2017, is amended to read as follows: 6 e. Preschool foundation aid funding shall not be used for 7 the costs of constructing a facility in connection with an 8 approved local program. Preschool foundation aid funding may 9 be used by approved local programs and community providers 10 for professional development for preschool teachers, for 11 instructional equipment, for material and equipment designed 12 to develop pupils’ large and small motor skills, and for other 13 direct costs. Preschool foundation aid funding may be used 14 by approved local programs for the costs of transportation 15 involving children participating in the preschool program. 16 The costs of transporting other children associated with 17 the preschool program or transported as provided in section 18 256C.3, subsection 3 , paragraph “h” , may be prorated by the 19 school district. Preschool foundation aid funding received by 20 an approved local program that remain remains unexpended or 21 and unobligated at the end of a fiscal year beginning on or 22 after July 1, 2017, shall be used to build the approved local 23 program’s preschool program capacity in the next succeeding 24 fiscal year excluding that portion of such unexpended and 25 unobligated funding that the school district authorizes for 26 transfer for deposit in the school district’s flexibility 27 account established under section 298A.2, subsection 2, if 28 the statutory requirements for the use of such funding are 29 met . For purposes of determining whether a school district 30 has authority to transfer preschool foundation aid funding 31 for deposit in the school district’s flexibility account 32 established under section 298A.2, subsection 2, the school 33 district must have provided preschool programming during 34 the fiscal year for which funding remains unexpended and 35 -1- HF565.2236 (2) 87 md/jh 1/ 8 #1.

unobligated to all eligible students for whom a timely 1 application for enrollment was submitted. 2 Sec. 2. Section 257.10, subsection 10, paragraph d, Code 3 2017, is amended to read as follows: 4 d. The use of the funds calculated under this subsection 5 and any amount designated for professional development purposes 6 from the school district’s flexibility account under section 7 298A.2, subsection 2, shall comply with the requirements of 8 chapter 284 . If all professional development requirements of 9 chapter 284 are met and funds received under this subsection 10 remain unexpended and unobligated at the end of a fiscal year 11 beginning on or after July 1, 2017, the school district may 12 transfer all or a portion of such unexpended and unobligated 13 funds for deposit in the school district’s flexibility account 14 established under section 298A.2, subsection 2. 15 Sec. 3. Section 257.41, subsection 1, Code 2017, is amended 16 to read as follows: 17 1. Budget. The budget of an approved program for at-risk 18 students, secondary students who attend alternative programs 19 or alternative schools, or returning dropouts and dropout 20 prevention for a school district, after subtracting funds 21 received under section 257.11, subsection 4 , paragraphs “a” 22 through “c” , and from other sources for that purpose, including 23 any previous carryover or amount designated from the school 24 district’s flexibility account under section 298A.2, subsection 25 2 , shall be funded annually on a basis of one-fourth or 26 more from the district cost of the school district and up to 27 three-fourths through establishment of a modified supplemental 28 amount. Annually, the department of management shall establish 29 a modified supplemental amount for each such school district 30 equal to the difference between the approved budget for the 31 program for that district and the sum of the amount funded from 32 the district cost of the school district plus funds received 33 under section 257.11, subsection 4 , and from other sources 34 for that purpose, including any previous carryover or amount 35 -2- HF565.2236 (2) 87 md/jh 2/ 8

designated from the school district’s flexibility account under 1 section 298A.2, subsection 2 . 2 Sec. 4. Section 257.46, subsection 1, Code 2017, is amended 3 to read as follows: 4 1. The budget of an approved gifted and talented children 5 program for a school district, after subtracting funds received 6 from other sources for that purpose, including any amount 7 designated from the school district’s flexibility account 8 under section 298A.2, subsection 2, shall be funded annually 9 on a basis of one-fourth or more from the district cost of the 10 school district. 11 Sec. 5. Section 284.6, subsection 9, Code 2017, is amended 12 to read as follows: 13 9. Moneys received pursuant to section 257.10, subsection 14 10 , or section 257.37A, subsection 2 , shall be maintained 15 as a separate listing within a school district’s or area 16 education agency’s budget for funds received and expenditures 17 made pursuant to this subsection . A school district shall 18 certify to the department of education how the school 19 district allocated the funds and that moneys received under 20 this subsection were used to supplement, not supplant, the 21 professional development opportunities the school district 22 would otherwise make available. For budget years beginning 23 on or after July 1, 2017, all or a portion of the moneys 24 received pursuant to section 257.10, subsection 10, that remain 25 unexpended and unobligated at the end of a fiscal year may, 26 pursuant to section 257.10, subsection 10, paragraph “d” , be 27 transferred for deposit in the school district’s flexibility 28 account established under section 298A.2, subsection 2. 29 Sec. 6. Section 298A.2, Code 2017, is amended to read as 30 follows: 31 298A.2 General fund —— flexibility account . 32 1. All moneys received by a school corporation from taxes 33 and other sources must be accounted for in the general fund, 34 except moneys required by law to be accounted for in another 35 -3- HF565.2236 (2) 87 md/jh 3/ 8

fund. 1 2. a. A flexibility account shall be established in 2 the general fund of each school corporation if the school 3 corporation has authorized the transfer of all or a portion 4 of the unexpended and unobligated funds from any of the 5 following sources following a determination that the statutory 6 requirements for such funds are met: 7 (1) An approved local program under the statewide preschool 8 program for four-year-old children under chapter 256C. 9 (2) Professional development funds received under section 10 257.10, subsection 10. 11 (3) The home school assistance program under section 12 299A.12. 13 b. In addition to the transfers to the flexibility account 14 authorized by law, a school district may transfer to the 15 flexibility account all or a portion of any unexpended and 16 unobligated moneys in any other school district fund or school 17 district general fund account if the program, purpose, or 18 requirements for the expenditure of such moneys have been 19 repealed or are no longer in effect. 20 c. Moneys deposited in the flexibility account may be used 21 by the school district during a budget year beginning in or 22 after the calendar year in which the moneys were transferred to 23 the flexibility account for any of the following: 24 (1) Start-up costs for an approved local program under the 25 statewide preschool program for four-year-old children under 26 chapter 256C. 27 (2) Professional development requirements under chapter 28 284. 29 (3) The home school assistance program under section 30 299A.12. 31 (4) At-risk pupils programs, alternative programs and 32 alternative school programs, and returning dropout and dropout 33 prevention programs under section 257.40. 34 (5) Gifted and talented children programs under section 35 -4- HF565.2236 (2) 87 md/jh 4/ 8

257.46. 1 (6) Any school district general fund purpose. 2 d. Expenditures from the flexibility account shall be 3 approved by resolution of the board of directors of the school 4 corporation and shall be included in the budget certified in 5 accordance with chapter 24. Before the board of directors 6 may adopt the resolution approving expenditures from the 7 flexibility account, the board shall hold a public hearing on 8 the proposed resolution. The proposed resolution must state 9 the original source and purpose of the funds, the proposed use 10 of such funds, the amount of the proposed expenditure, and 11 the fiscal year from which the transfer of such funds to the 12 flexibility account occurred. The proposed resolution must 13 also include a certification that the statutory requirements 14 for each original source of the money proposed to be used have 15 been met, have been repealed, or are no longer in effect. The 16 board shall publish notice of the time and the place of the 17 public hearing in the same manner as required in section 24.9. 18 The department of education shall prescribe the form for public 19 hearing notices. A copy of the resolution shall be provided 20 by the board to the department of education and shall be made 21 available by the board for any audit performed under chapter 22 11. 23 e. (1) When exercising authority to carry out an agency 24 action, as defined in section 17A.2, or to perform an activity 25 or make a decision specified in section 17A.2, subsection 26 11, paragraphs “a” through “l” , if applicable, related to the 27 provisions of this subsection, the department of education, the 28 director of the department of education, and the state board 29 of education shall carry out, perform, or make such agency 30 action, activity, or decision in a manner that gives deference 31 to decisions of school districts’ boards of directors, promotes 32 flexibility for school districts, and minimizes intrusions into 33 school district operations and decision making by boards of 34 directors. 35 -5- HF565.2236 (2) 87 md/jh 5/ 8

(2) (a) In addition to subparagraph (1), the department of 1 education, the director of the department of education, and the 2 state board of education shall not issue guidance related to 3 the provisions of this subsection, that is inconsistent with 4 any statute, rule, or other legal authority or that imposes 5 any legally binding obligations or duties upon any person 6 unless such legally binding obligations or duties are required 7 or reasonably implied by any statute, rule, or other legal 8 authority. Guidance issued in violation of this subparagraph 9 (2) shall not be deemed to be legally binding. 10 (b) For the purposes of this subparagraph (2), “guidance” 11 means a document or statement issued by the department of 12 education, the director of the department of education, or the 13 state board of education that purports to interpret a law, 14 a rule, or other legal authority and is designed to provide 15 advice or direction to a person regarding the implementation 16 of or compliance with the law, the rule, or the other legal 17 authority being interpreted. “Guidance” does not include any 18 action, activity, or decision governed by subparagraph (1), a 19 document or statement required by federal law or a court, or 20 a document or statement issued in the course of a contested 21 case proceeding, an administrative proceeding, or a judicial 22 proceeding to which the department, the state board, or the 23 director is a party. 24 Sec. 7. Section 299A.12, subsection 1, Code 2017, is amended 25 to read as follows: 26 1. The board of directors of a school district shall 27 expend moneys received pursuant to section 257.6, subsection 28 1 , paragraph “a” , subparagraph (5), and amounts designated 29 from the school district’s flexibility account under section 30 298A.2, subsection 2, for purposes of providing a home school 31 assistance program. 32 Sec. 8. Section 299A.12, subsection 2, unnumbered paragraph 33 1, Code 2017, is amended to read as follows: 34 Purposes for which a school district may expend funds 35 -6- HF565.2236 (2) 87 md/jh 6/ 8

received pursuant to section 257.6, subsection 1 , paragraph 1 “a” , subparagraph (5), or amounts designated from the school 2 district’s flexibility account under section 298A.2, subsection 3 2, shall include but not be limited to the following: 4 Sec. 9. Section 299A.12, subsection 2, paragraphs c and d, 5 Code 2017, are amended to read as follows: 6 c. Salary and benefits for the supervising teacher of 7 the home school assistance program students. If the teacher 8 is a part-time home school assistance program teacher and a 9 part-time regular classroom teacher, funds received pursuant to 10 section 257.6, subsection 1 , paragraph “a” , subparagraph (5), 11 or amounts designated from the school district’s flexibility 12 account under section 298A.2, subsection 2, may be used only 13 for the portion of time in which the teacher is a home school 14 assistance program teacher. 15 d. Salary and benefits for clerical and office staff of 16 the home school assistance program. If the staff members are 17 shared with other programs or functions within the district, 18 funds received pursuant to section 257.6, subsection 1 , 19 paragraph “a” , subparagraph (5), or amounts designated from the 20 school district’s flexibility account under section 298A.2, 21 subsection 2, shall only be expended for the portion of time 22 spent providing the home school assistance program services. 23 Sec. 10. Section 299A.12, subsection 3, unnumbered 24 paragraph 1, Code 2017, is amended to read as follows: 25 Purposes for which a school district shall not expend funds 26 received pursuant to section 257.6, subsection 1 , paragraph 27 “a” , subparagraph (5), or amounts designated from the school 28 district’s flexibility account under section 298A.2, subsection 29 2, include but are not limited to the following: 30 Sec. 11. Section 299A.12, Code 2017, is amended by adding 31 the following new subsection: 32 NEW SUBSECTION . 4. Unless otherwise prohibited by law, and 33 if the statutory requirements for use of home school assistance 34 program funding have been met, including funding all purposes 35 -7- HF565.2236 (2) 87 md/jh 7/ 8

listed in subsection 2 and funding all requests for services 1 and materials from parents or guardians of students eligible 2 to access the program, all or a portion of the moneys received 3 by a school district pursuant to section 257.6, subsection 4 1, paragraph “a” , subparagraph (5), that remain unexpended 5 and unobligated at the end of a budget year beginning on or 6 after July 1, 2017, may be transferred for deposit in the 7 school district’s flexibility account established under section 8 298A.2, subsection 2. > 9 2. Title page, line 2, by striking < fund > 10 ______________________________ AMY SINCLAIR -8- HF565.2236 (2) 87 md/jh 8/ 8 #2.