House File 813 H-1244 Amend House File 813 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 256E.1 Establishment of charter 4 schools —— purpose. 5 1. Charter schools shall be part of the state’s program of 6 public education and shall have all the powers and duties of a 7 school district except the power of taxation, unless otherwise 8 provided in this chapter. 9 2. A charter school is entrusted with public funds for 10 the purpose of improving student outcomes, including but not 11 limited to student academic achievement and skill proficiency, 12 and the governing board of the charter school is responsible 13 for overseeing such improvement. 14 3. A charter school may be established by either of the 15 following methods: 16 a. A school board may create a founding group, either 17 on the school board’s own motion or upon the school board’s 18 approval of a proposal to create a founding group submitted 19 to the school board by a group of persons or an education 20 service provider, to apply to the state board for approval to 21 establish and operate a charter school within and as a part of 22 the school district by establishing a new attendance center, 23 creating a new school within an existing attendance center, or 24 by converting an existing attendance center to charter status. 25 b. A founding group may apply to the state board for 26 approval to establish and operate a charter school within the 27 boundaries of the state that operates as a new attendance 28 center independently from a public school district. 29 4. In addition to subsection 2, the purpose of a charter 30 school established pursuant to this chapter shall be to 31 accomplish the following: 32 a. Improve student learning, well-being, and postsecondary 33 success, and course credit recovery leading to graduation for 34 students not enrolled in school and lacking a high school 35 -1- HF813.1538 (1) 89 md/jh 1/ 26 #1.

diploma. 1 b. Increase learning opportunities for students in areas 2 of need in this state, including but not limited to science, 3 technology, engineering, and math (STEM), and science, 4 technology, engineering, arts, and math (STEAM). 5 c. Increase opportunities for work-based learning, early 6 literacy intervention, and serving at-risk populations. 7 d. Accelerating student learning to prevent learning loss 8 during the COVID-19 pandemic and other significant disruptions 9 to student learning. 10 e. Encourage the use of evidence-based practices in 11 innovative environments. 12 f. Require the measurement and evaluation of program 13 implementation and learning outcomes. 14 g. Establish models of success for Iowa schools. 15 h. Create new professional opportunities for teachers and 16 other educators. 17 i. Investigate and establish different organizational 18 structures for schools to use to implement a multi-tiered 19 system of supports for students. 20 j. Allow greater flexibility to meet the education needs of 21 a diverse student population and changing workforce needs. 22 k. Allow for the flexible allocation of resources through 23 implementation of specialized school budgets for the benefit 24 of the schools served. 25 l. Allow greater flexibility for districts and schools to 26 focus on closing gaps in student opportunity and achievement 27 for all students from preschool through postsecondary 28 preparation. 29 5. A nonpublic school or a religiously affiliated school 30 shall not apply as a founding group to become or establish a 31 charter school under this chapter. 32 6. The state board of education shall be the only authorizer 33 of charter schools under this chapter. 34 Sec. 2. NEW SECTION . 256E.2 Definitions. 35 -2- HF813.1538 (1) 89 md/jh 2/ 26

As used in this chapter, unless the context otherwise 1 requires: 2 1. “Attendance center” means a school building that contains 3 classrooms used for instructional purposes for elementary, 4 middle, or secondary school students. 5 2. “Charter school” means a brick and mortar school 6 established in accordance with this chapter. 7 3. “Department” means the department of education. 8 4. “Education service provider” means an education 9 management organization or charter school management 10 organization that is a highly successful charter school 11 operator and with whom a charter school contracts for 12 educational program implementation or comprehensive management. 13 5. “Founding group” means a group of persons or an education 14 service provider that develops and submits an application for a 15 charter school to the state board under this chapter. 16 6. “Governing board” means the independent board of a 17 charter school whose members are either elected by the parents 18 and guardians of students enrolled in the charter school if the 19 charter school is established as provided under section 256E.1, 20 subsection 3, paragraph “b” , or are appointed by the school 21 board if the charter school is established as provided under 22 section 256E.1, subsection 3, paragraph “a” . 23 7. “Highly successful charter school operator” means an 24 education management organization or charter school management 25 organization, or the principal officers of such organization, 26 that operates as a nonprofit corporation with one or more 27 existing highly successful charter schools that have been in 28 existence and under the same operation and ownership for a 29 minimum of ten years, each of which have exhibited sustained 30 high levels of student growth and achievement and sustained 31 fiscal growth for a minimum of ten years. “Highly successful 32 charter school operator” does not include an organization that 33 has previously operated charter schools in other areas that 34 were closed for failure to meet targeted student achievement 35 -3- HF813.1538 (1) 89 md/jh 3/ 26

measures, for lack of enrollment, or for a lack of financial 1 viability. 2 8. “School board” means a board of directors regularly 3 elected by the registered voters of an accredited public school 4 district. 5 9. “State board” means the state board of education. 6 Sec. 3. NEW SECTION . 256E.3 Department —— duty to monitor. 7 The department shall monitor the effectiveness of charter 8 schools and shall implement the applicable provisions of this 9 chapter. 10 Sec. 4. NEW SECTION . 256E.4 Application. 11 1. The founding group’s application submitted to the state 12 board shall demonstrate the founding group’s academic and 13 operational vision and plans for the proposed charter school, 14 demonstrate the founding group’s capacity to execute the vision 15 and plans, and provide the state board a clear basis for 16 assessing the founding group’s plans and capacity. 17 2. The state board shall establish appropriate application 18 timelines and deadlines for the submission of charter school 19 applications. 20 3. The instructions for completing an application shall 21 include or otherwise inform applicants of all of the following: 22 a. The performance framework adopted by the state board 23 for charter school oversight and evaluation requirements in 24 accordance with sections 256E.8 and 256E.9. 25 b. The criteria the state board will use in evaluating 26 applications. 27 c. The requirements concerning the format and content 28 essential for applicants to demonstrate the capacities 29 necessary to establish and operate a successful charter school. 30 4. An application submitted under this section shall also 31 include all of the following items related to the proposed 32 charter school: 33 a. An executive summary. 34 b. The mission and vision of the proposed charter school, 35 -4- HF813.1538 (1) 89 md/jh 4/ 26

including identification of the targeted student population and 1 the community the charter school intends to serve. 2 c. The location of the proposed charter school or the 3 proposed geographic area where the school is proposed to be 4 located. 5 d. Identification of the grades to be served each school 6 year during the duration of the charter school contract. 7 e. Minimum, planned, and maximum enrollment per grade for 8 each school year during the duration of the charter school 9 contract. 10 f. If the proposed charter school will operate independently 11 from a school district, evidence of need and community support. 12 Evidence of community support shall include at least all of the 13 following: 14 (1) A petition in support of the proposed charter school 15 signed by eligible electors equal in number to the greater of 16 one hundred or thirty percent of the number of voters who cast 17 a vote for the board of directors of the school district at the 18 last preceding election of school officials under section 277.1 19 for the school district where the charter school is proposed 20 to be located. 21 (2) Evidence of a public hearing held regarding 22 establishing the charter school, including the number of 23 participants and a summary of the comments presented in support 24 and opposition to the charter school proposal. Notice of the 25 public hearing shall be given in the manner required in section 26 24.9. 27 g. The Iowa school performance profiles for the school 28 districts in the geographic area where the charter school 29 is proposed to be located, if available, including specific 30 achievement information for the type of students to be served 31 by the charter school with the goal to serve all students who 32 enroll. 33 h. Background information on the members of the founding 34 group including the disclosure of any ownership or financial 35 -5- HF813.1538 (1) 89 md/jh 5/ 26

interest in the charter school, including but not limited to 1 the building and real property to be used in the operation of 2 the charter school. 3 i. Background information on the governing board, 4 including the initial appointment of a governing board 5 prior to election of such board members, administration, and 6 management personnel of the proposed charter school, if such 7 board members and personnel are known. If board members are 8 appointed or elected subsequent to approval of the charter 9 school application and administration or management personnel 10 are selected and contracted with after approval of the charter 11 school application, background information on such members 12 and personnel shall be provided to the state board prior to 13 entering in a charter school contract. 14 j. The charter school’s proposed operations calendar and 15 sample daily schedule. 16 k. A description of the academic program and identification 17 of ways the program aligns with state academic standards. 18 l. A description of the charter school’s attendance policy, 19 including whether a student can be expelled for violation of 20 the charter school’s attendance policy. 21 m. A description of the charter school’s instructional 22 model, including the type of learning environment, class size 23 and structure, curriculum overview, and teaching methods. 24 n. The charter school’s plan for using internal and external 25 assessments to measure and report student progress on the 26 performance framework in accordance with section 256E.8. 27 o. Plans for identifying and serving students with 28 disabilities, students who are limited English proficient, 29 students of low socioeconomic status, at-risk students, 30 minority students, students who are academically failing or 31 below grade level, and gifted students, including but not 32 limited to compliance with applicable laws and regulations. 33 p. The specific statutes and administrative rules with which 34 the charter school does not intend to comply. The department 35 -6- HF813.1538 (1) 89 md/jh 6/ 26

shall provide technical assistance to the applicant concerning 1 statutes and administrative rules that may be waived under the 2 charter school contract in order to facilitate the goals of the 3 charter school. 4 q. A description of cocurricular and extracurricular 5 programs and how the programs will be funded and delivered. 6 r. Plans and timelines for student recruitment, enrollment, 7 and transfers, including enrollment preferences and procedures 8 for conducting transparent admissions selections, including 9 admissions lotteries. 10 s. The proposed code of student conduct, including 11 applicable procedures and disciplinary sanctions for both 12 general students and special education students. 13 t. A chart or description of the charter school’s 14 organizational structure and the duties and powers of each 15 position or group, including the delineation of authority and 16 reporting between the governing board, administration, staff, 17 and any related bodies or external organizations that have a 18 role in managing the charter school. 19 u. A staffing chart for the charter school’s first year 20 and a staffing plan for the duration of the charter school 21 contract. 22 v. Plans for recruiting and developing school 23 administrators, staff, and governing board members and the 24 charter school’s employment policies, including performance 25 evaluation plans. 26 w. Proposed governing bylaws for the charter school, 27 including the method of appointment of temporary members prior 28 to the election of a governing board, if applicable. 29 x. Identification and explanation of any partnerships or 30 contractual relationships with the founding group or any of the 31 founding group, the governing board, or school board’s members 32 that are related to the charter school’s operations or mission. 33 y. The charter school’s plans for providing transportation 34 services, food service, and all other operational or ancillary 35 -7- HF813.1538 (1) 89 md/jh 7/ 26

services, including the manner in which the charter school will 1 comply with federal and state laws and regulations relating to 2 the federal National School Lunch Act and the federal Child 3 Nutrition Act of 1966, 42 U.S.C. §1751-1785, and chapter 283A. 4 z. Proposed opportunities and expectations for parent 5 involvement. 6 aa. A detailed school start-up plan and five-year plan, 7 including all relevant assumptions used, identifying timelines 8 for charter school finances, budget, and insurance coverage, 9 facility construction, preparation, and contingencies, and the 10 identification of persons or positions responsible for each 11 such item. The financial and budget information contained in 12 the start-up plan shall include a detailed description of the 13 charter school’s funding for the first year of operation and 14 the percentage of the charter school’s funding in each year 15 that will be dedicated to direct classroom expenditures. 16 ab. Evidence of anticipated fundraising contributions, if 17 any. 18 ac. Evidence of the founding group’s success in serving 19 student populations similar to that which is proposed in the 20 application and if the founding group operates other charter 21 schools, evidence of past performance of such other charter 22 schools and evidence of the founding group’s capacity for an 23 additional charter school. 24 ad. A description of the charter school governing board’s 25 performance evaluation measures, methods of contract oversight 26 and dispute resolution, and investment disclosure and conflicts 27 of interest policies. 28 ae. A proposed duration and outline of the charter school 29 contract, including designation of roles, authority, and duties 30 of the governing board and the charter school staff. 31 af. If the application includes a proposal that the 32 governing board contracts with an education service provider, 33 evidence of the education service provider’s success in serving 34 student populations similar to that which is proposed in the 35 -8- HF813.1538 (1) 89 md/jh 8/ 26

application and if the education service provider operates 1 other charter schools, evidence of past performance of such 2 other charter schools and evidence of the education service 3 provider’s capacity for growth. Information required under 4 this paragraph shall also include other charter schools 5 proposed by the education service provider or operated by the 6 education service provider that did not open or that have 7 closed. 8 ag. If the application includes a proposal that the 9 governing board contracts with an education service provider, 10 a description of the education service provider’s performance 11 evaluation measures, compensation structure, methods of 12 contract oversight and dispute resolution, and investment 13 disclosure and conflicts of interest policies. 14 5. If the founding group proposes to establish a charter 15 school by converting an existing attendance center of the 16 school district, the state board shall not approve the 17 application unless the founding group submits evidence that 18 the attendance center’s principal, teachers, and parents or 19 guardians of students enrolled at the existing attendance 20 center voted in favor of the conversion. A vote in favor of 21 conversion under this subsection requires the support of the 22 principal and at least fifty percent of the teachers employed 23 at the school on the date of the vote and at least fifty percent 24 of the parents or guardians voting whose children are enrolled 25 at the attendance center, provided that a majority of the 26 parents or guardians eligible to vote participate in the ballot 27 process. A parent or guardian voting in accordance with this 28 subsection must be a resident of this state. 29 6. If the founding group proposes to establish a charter 30 school that operates independently from a school district, 31 the founding group shall provide notice and a copy of the 32 application to the school board of each school district the 33 territory of which are in whole or in part within the charter 34 school’s proposed attendance area to be served at least thirty 35 -9- HF813.1538 (1) 89 md/jh 9/ 26

days prior to submitting an application to the state board. 1 The purpose of the notice is to inform the applicable school 2 districts that the founding group is seeking approval for a 3 charter school. The notice shall also include an offer for 4 the founding group to attend a school board meeting of each 5 applicable school district if so requested. Evidence of the 6 notice and any information derived from any school board 7 meeting attended by the founding group shall be included as 8 part of the application. 9 7. Prior to making a decision on an application for a 10 charter school that operates independently from a school 11 district, the state board shall do all of the following: 12 a. Hold a public hearing in the geographic area in which the 13 charter school is proposed to be located. Notice of the public 14 hearing shall be given in the manner required in section 24.9. 15 b. Provide a copy of the state board’s recommendation 16 following the public hearing under paragraph “a” , along with a 17 notice of a state board hearing date to the school district in 18 which the proposed charter school will be physically located. 19 The notice shall specify the process for submitting written 20 comments and for testifying at the state board hearing. 21 c. At the hearing under paragraph “b” , and prior to final 22 decision of the state board, consider the community input 23 received related to the student, taxpayer, and community 24 interests of the affected school districts relative to the 25 needs of the students potentially served by the charter school. 26 8. Following completion of the process required under this 27 section, the state board shall do all of the following: 28 a. Evaluate the charter school application using the 29 principles and standards for quality charter school authorizing 30 developed by the national association of charter school 31 authorizers, including a thorough evaluation of the written 32 application and an in-person interview with the founding group. 33 b. Approve a charter school application only if the 34 founding group has complied with the requirements of this 35 -10- HF813.1538 (1) 89 md/jh 10/ 26

chapter, has demonstrated competence in each element of the 1 approval criteria, is likely to open and operate a successful 2 charter school, and, if the charter school will operate as 3 provided under section 256E.1, subsection 3, paragraph “b” , the 4 applicant is a highly successful charter school operator or 5 intends to contract with an educational service provider who is 6 a highly successful charter school operator. 7 c. Make application decisions on documented evidence 8 collected through the application review process, including 9 but not limited to testimony presented by the public and an 10 analysis of the fiscal impact on each school district in the 11 charter school’s proposed attendance area to be served, and the 12 impact on the school district in which the charter school will 13 be located. 14 d. Adhere to the policies and criteria that are transparent, 15 based on merit, and avoid conflicts of interest or any 16 appearance thereof. 17 9. a. The state board shall approve or deny a charter 18 school application no later than seventy-five calendar days 19 after the application is received. If the state board denies 20 an application, the state board shall provide notice of denial 21 to the founding group in writing within thirty days after the 22 state board’s action. The notice shall specify the exact 23 reasons for denial and provide documentation supporting those 24 reasons. An approval decision may include, if appropriate, 25 reasonable conditions that the founding group must meet before 26 a charter school contract may be executed pursuant to section 27 256E.5. An approved charter application shall not serve as a 28 charter school contract. 29 b. The state board shall not approve a charter school 30 application if the founding group intends to contract with an 31 education service provider that does not meet the definition of 32 a highly successful charter school. 33 c. The state board shall not approve a charter school 34 application if approval would result in more than five charter 35 -11- HF813.1538 (1) 89 md/jh 11/ 26

schools that are not geographically dispersed. 1 d. The state board shall not approve a charter school 2 application if approval would result in more than one charter 3 school in a major metropolitan area as defined by the United 4 States census bureau. 5 e. The state board shall not approve a charter school 6 application if the founding group is applying for more than one 7 charter school, if the founding group has multiple applications 8 before the state board, or if the founding group is proposing 9 to contract with an education service provider that is included 10 in a different founding group’s application before the board. 11 f. The state board shall not approve a charter school 12 application if the charter school’s proposed attendance area to 13 be served includes an area already served by a charter school. 14 10. A decision of the state board relating to an application 15 under this section is not appealable. 16 11. An unsuccessful applicant under this section may 17 subsequently reapply to the state board. 18 Sec. 6. NEW SECTION . 256E.5 Charter school contract. 19 1. Within the later of thirty days following approval of 20 a charter school application or upon the satisfaction of all 21 reasonable conditions imposed on the applicant in the charter 22 school approval, if any, an enforceable and renewable charter 23 school contract shall be executed between the founding group 24 and the state board setting forth the academic and operational 25 performance expectations and measures by which the charter 26 school will be evaluated pursuant to sections 256E.8 and 256E.9 27 and the other rights and duties of the parties. 28 2. An initial charter school contract shall be granted for a 29 term of five school budget years. The charter school contract 30 shall include the beginning and ending dates of the charter 31 school contract term. An approved charter school may delay its 32 opening for a period of time not to exceed one school year in 33 order to plan and prepare for the charter school’s opening. If 34 the charter school requires an opening delay of more than one 35 -12- HF813.1538 (1) 89 md/jh 12/ 26

school year, the charter school may request an extension from 1 the state board. 2 3. Each charter school contract shall be signed by the 3 president of the state board and either the president or 4 appropriate officer of the governing body of the founding group 5 or the school board president if the charter school is operated 6 within and as part of a school district. 7 4. Within fifteen days of the execution of a charter school 8 contract entered into by the state board, the state board shall 9 notify the department and the department of management of the 10 name of the charter school and any applicable education service 11 provider, the proposed location of the charter school, and the 12 charter school’s first year projected enrollment. 13 5. A charter school approved under this chapter shall not 14 commence operations without a valid charter school contract 15 executed in accordance with this section and approved in an 16 open session of the state board. 17 6. The contract may provide for requirements or conditions 18 to govern and monitor the start-up progress of an approved 19 charter school prior to the opening of the charter school 20 including but not limited to conditions to ensure that the 21 charter school meets all building, health, safety, insurance, 22 and other legal requirements. 23 Sec. 7. NEW SECTION . 256E.6 General operating powers and 24 duties. 25 1. In order to fulfill the charter school’s public purpose, 26 a charter school established under this chapter shall be 27 operated in the same manner as a public school attendance 28 center and, unless otherwise provided in this chapter, shall 29 have all the powers necessary for carrying out the terms of 30 the charter school contract including but not limited to the 31 following, as applicable: 32 a. Receive and expend funds for charter school purposes. 33 b. Secure appropriate insurance and enter into contracts and 34 leases. However, a charter school operated within and as part 35 -13- HF813.1538 (1) 89 md/jh 13/ 26

of a school district shall not pledge, assign, or encumber the 1 school district’s assets to be used as collateral for loans or 2 extensions of credit without authority conferred by resolution 3 of the school board. 4 c. Contract with an education service provider for the 5 management and operation of the charter school so long as the 6 governing board retains oversight authority over the charter 7 school. 8 d. Incur debt in anticipation of the receipt of public or 9 private funds. 10 e. Pledge, assign, or encumber the charter school’s assets 11 to be used as collateral for loans or extensions of credit. 12 f. Solicit and accept gifts or grants for charter school 13 purposes unless otherwise prohibited by law or by the terms of 14 its charter school contract. 15 g. Acquire from public or private sources real property for 16 use as a charter school or a facility directly related to the 17 operations of the charter school. 18 h. Sue and be sued in the charter school’s own name. 19 i. Operate an education program that may be offered by any 20 noncharter public school or school district. 21 2. A charter school established under this chapter is 22 exempt from all state statutes and rules applicable to a school 23 district, except that the charter school and the governing 24 board shall do all of the following: 25 a. Meet all applicable federal, state, and local health and 26 safety requirements and laws prohibiting discrimination on the 27 basis of race, creed, color, sex, sexual orientation, gender 28 identity, national origin, religion, ancestry, or disability. 29 If approved under section 256E.1, subsection 3, paragraph 30 “a” , the charter school shall be subject to any court-ordered 31 desegregation in effect for the school district at the time 32 the charter school application is approved, unless otherwise 33 specifically provided for in the desegregation order. 34 b. Operate as a nonsectarian, nonreligious school and 35 -14- HF813.1538 (1) 89 md/jh 14/ 26

religious instruction in the charter school is prohibited. 1 c. Be free of tuition and application fees to Iowa resident 2 students between the ages of five and twenty-one years. 3 d. Be subject to and comply with chapters 216 and 216A 4 relating to civil and human rights. 5 e. Provide special education services in accordance with 6 chapter 256B. 7 f. Be subject to the same financial audits, audit 8 procedures, and audit requirements as a school district. The 9 audit shall be consistent with the requirements of sections 10 11.6, 11.14, 11.19, and 279.29, and section 256.9, subsection 11 20, except to the extent deviations are necessary because 12 of the program at the school. The department, the auditor 13 of state, or the legislative services agency may conduct 14 financial, program, or compliance audits. 15 g. Be subject to and comply with the provisions of chapter 16 285 relating to the transportation of students. 17 h. Be subject to and comply with the requirements of section 18 256.7, subsection 21, and the educational standards of section 19 256.11, unless specifically waived by the state board during 20 the application process. 21 i. Provide instruction for at least the number of days 22 or hours required by section 279.10, subsection 1, unless 23 specifically waived by the state board as part of the 24 application process. 25 j. Be subject to and comply with the provisions of chapters 26 21 and 22. 27 k. Be subject to and comply with the provisions of chapter 28 26. 29 l. Comply with the requirements of this chapter. 30 3. A charter school shall employ or contract with teachers 31 and administrators as defined in section 272.1, who hold valid 32 licenses with an endorsement for the type of instruction or 33 service for which the teacher or administrator is employed or 34 under contract. All instruction must be provided under the 35 -15- HF813.1538 (1) 89 md/jh 15/ 26

direction of appropriately licensed or certified staff or staff 1 with appropriate endorsements. 2 4. A charter school shall not discriminate in its student 3 admissions policies or practices on the basis of intellectual 4 or athletic ability, measures of achievement or aptitude, or 5 status as a person with a disability. However, a charter 6 school may limit admission to students who are within a 7 particular range of ages or grade levels or on any other basis 8 that would be legal if initiated by a school district. A 9 charter school shall not use an entrance or placement exam to 10 deny enrollment to an eligible student. Enrollment priority 11 shall be given to the siblings of students enrolled in a 12 charter school. 13 5. A charter school shall enroll an eligible student who 14 submits a timely application unless the number of applications 15 exceeds the capacity of a program, class, grade level, or 16 building. In this case, students must be accepted by lot. 17 Upon enrollment of an eligible student, the charter school 18 shall notify the public school district of residence not later 19 than March 1 of the school year preceding the school year of 20 enrollment. 21 6. Each charter school governing board shall be required to 22 adopt a conflict of interest policy and a code of ethics for 23 all board members and employees. 24 7. Each charter school governing board shall adopt a policy 25 regarding the hiring of family members to avoid nepotism in 26 hiring and supervision. The policy shall include but is not 27 limited to a disclosure to the governing board of potential 28 nepotism in hiring and supervision. Any person subject to the 29 policy with a conflict shall not be involved in the hiring 30 decision or supervision of a potential employee. 31 8. Individuals compensated by an education service provider 32 are prohibited from serving as a voting member on the governing 33 board of any charter school. 34 9. If the charter school is operated by an education service 35 -16- HF813.1538 (1) 89 md/jh 16/ 26

provider, the governing board of the charter school shall have 1 access to all records of the education service provider that 2 are necessary to evaluate any provision of the contract or 3 evaluate the education service provider’s performance under the 4 contract. 5 10. If the charter school operates independently from 6 a public school district as provided under section 256E.1, 7 subsection 3, paragraph “b” , members of the founding group and 8 persons compensated by the founding group are prohibited from 9 serving as a voting member of the governing board. 10 Sec. 8. NEW SECTION . 256E.7 Funding. 11 1. Each student enrolled in a charter school established 12 under this chapter shall be counted, for state school 13 foundation purposes, in the student’s district of residence 14 pursuant to section 257.6, subsection 1, paragraph “a” , 15 subparagraph (9), including any applicable amounts under 16 section 256B.9. For purposes of this section, residence means 17 a residence under section 282.1. 18 2. The school district of residence shall pay to the charter 19 school in which the student is enrolled in the manner required 20 under section 282.18, and pursuant to the timeline in section 21 282.20, subsection 3, an amount equal to the sum of the state 22 cost per pupil for the previous school year plus the teacher 23 leadership supplement state cost per pupil for the previous 24 fiscal year as provided in section 257.9 plus any moneys 25 received for the pupil as a result of the non-English speaking 26 weighting under section 280.4, subsection 3, for the previous 27 school year multiplied by the state cost per pupil for the 28 previous year. If a student is an eligible pupil under section 29 261E.6, the charter school shall pay the tuition reimbursement 30 amount to an eligible postsecondary institution as provided 31 in section 261E.7. If the student is no longer eligible for 32 non-English speaking weighting under section 280.4, subsection 33 3, as a result of proficiency, the amount required to be paid 34 to the charter school as the result of non-English speaking 35 -17- HF813.1538 (1) 89 md/jh 17/ 26

weighting shall be zero. For a student requiring special 1 education, the school district of residence shall pay to the 2 charter school the actual costs incurred in providing the 3 appropriate special education. 4 3. If necessary, and pursuant to rules adopted by the state 5 board, funding amounts required under this section for the 6 first school year of a new charter school shall be based on 7 enrollment estimates for the charter school included in the 8 charter school contract and shall be paid by the department of 9 education from the appropriation under subsection 4. Initial 10 amounts paid using estimated enrollments shall be reconciled 11 during the subsequent payment based on actual enrollment of the 12 charter school during the first school year. 13 4. There is appropriated annually from the general fund of 14 the state to the department of education an amount necessary 15 to pay all applicable amounts to charter schools for the first 16 school year of each new charter school under subsection 3 and 17 the amount otherwise required to be paid under subsection 2 for 18 a student enrolled in the charter school who was not included 19 in the actual enrollment of the district of residence under 20 section 257.6, subsection 1, in the previous school year. 21 5. If a student leaves the charter school and enrolls in 22 a public school district, the charter school shall pay to 23 the district in which the student enrolls a prorated amount 24 of funding associated with the remainder of the school year. 25 If the amount paid to the charter school for the student’s 26 enrollment was paid under subsection 4 and the student leaves 27 the charter school but does not enroll in a public school 28 district, the charter school shall repay to the department 29 of education a prorated amount of the funding of the student 30 associated with the remainder of the school year. 31 Sec. 9. NEW SECTION . 256E.8 Performance framework. 32 1. The performance provisions within the charter school 33 contract shall be based on a performance framework adopted 34 by the state board that clearly sets forth the academic and 35 -18- HF813.1538 (1) 89 md/jh 18/ 26

operational performance indicators, measures, and metrics that 1 will guide the evaluation of the charter school by the state 2 board, without compromising individual student privacy. The 3 performance framework shall include but is not limited to 4 indicators, measures, and metrics for all of the following: 5 a. Student academic proficiency. 6 b. Student academic growth. 7 c. Achievement gaps in both proficiency and growth between 8 specified populations or groups of students, including groups 9 based on gender, race, poverty, special education status, 10 limited English proficiency, and gifted status. 11 d. Attendance. 12 e. Enrollment attrition. 13 f. Postsecondary readiness for students in grades nine 14 through twelve. 15 g. Goals specified in the charter school’s mission. 16 h. Financial performance and sustainability. 17 i. Governing board performance and stewardship, including 18 compliance with all applicable laws, regulations, and terms of 19 the charter contract. 20 2. Annual performance targets shall be agreed upon between 21 each charter school and the state board. Such performance 22 targets shall be contained in the charter school contract and 23 shall be designed to help each charter school meet applicable 24 federal, state, and local standards. The performance targets 25 contained in the charter school contract may be amended by 26 mutual agreement after the charter school is operating and has 27 collected initial achievement data for the charter school’s 28 students. 29 3. The state board is responsible for collecting, 30 analyzing, and reporting all data from state assessments and 31 other state data sources in accordance with the performance 32 framework. However, all efforts shall be made by all 33 parties to the charter school contract to eliminate or reduce 34 duplicative data reporting requirements. 35 -19- HF813.1538 (1) 89 md/jh 19/ 26

4. Each charter school established under this chapter 1 shall be evaluated and graded by the department pursuant to 2 the attendance center performance ranking system developed and 3 adopted by the department. 4 Sec. 10. NEW SECTION . 256E.9 Oversight —— corrective action 5 —— contract renewal —— revocation. 6 1. The state board shall monitor the performance and 7 compliance of each charter school the state board approves, 8 including collecting and analyzing data according to the 9 charter school contract in order to meet the requirements 10 of this chapter. Such oversight may include inquiries and 11 investigation of the charter school so long as the activities 12 are consistent with the intent of this chapter, adhere to the 13 terms of the charter school contract, and do not unduly inhibit 14 the autonomy granted to the charter school. Any performance 15 report resulting from an inquiry or investigation under this 16 section shall, upon conclusion of such action, be included in 17 the annual report required under section 256E.11. 18 2. As part of the charter school contract, the charter 19 school shall be required to submit an annual report to assist 20 the state board in evaluating the charter school’s performance 21 and compliance with the performance framework. 22 3. If a charter school’s performance under the charter 23 school contract or compliance with applicable laws or rules is 24 unsatisfactory, the state board shall notify the charter school 25 of the perceived problem and provide reasonable opportunity for 26 the school to remedy the problem, unless the problem warrants 27 revocation, in which case the revocation provisions of this 28 section apply. 29 4. If at any time during a fiscal year, a charter school 30 knows or reasonably should know that the charter school has 31 or will become unable to pay in full the charter school’s 32 projected expenses as such expenses become due, the governing 33 board shall immediately notify the state board and shall 34 provide the state board with all financial information relating 35 -20- HF813.1538 (1) 89 md/jh 20/ 26