Senate File 2369 S-5106 Amend Senate File 2369 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 PARENT OR GUARDIAN BILL OF RIGHTS 5 Section 1. Section 256.11, subsection 10, paragraph a, 6 subparagraph (1), Code 2022, is amended by adding the following 7 new subparagraph division: 8 NEW SUBPARAGRAPH DIVISION . (0e) The requirements of 9 section 279.76. 10 Sec. 2. Section 256E.7, subsection 2, Code 2022, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . 0i. Be subject to and comply with the 13 requirements of section 279.76 in the same manner as a school 14 district. 15 Sec. 3. NEW SECTION . 279.76 Parent or guardian bill of 16 rights. 17 1. Unless otherwise prohibited by state or federal law, the 18 board of directors of a school district shall adopt policies to 19 ensure that all of the following parental rights are reserved 20 to the parent or guardian of a minor child without obstruction 21 or interference from the school district in which the minor 22 child is enrolled: 23 a. The right to know what the school district in which 24 the minor child is enrolled is teaching the minor child, 25 including the textbooks, books, articles, outlines, handouts, 26 presentations, videos, and any other similar materials the 27 school district uses for student instruction. By July 1, 2025, 28 the school district shall grant access through the internet to 29 the curriculum used for student instruction of a minor child 30 enrolled in the school district to the parent or guardian of 31 the minor child. 32 b. The right to access and review information related to 33 who is teaching the minor child, including guest lecturers and 34 outside presenters. 35 -1- SF 2369.4191 (2) 89 jda/jh 1/ 31 #1.

c. The right to access and review information related to 1 persons who contract with or otherwise receive moneys from the 2 school district. 3 d. The right to access the minor child while the minor child 4 is in school that a reasonable person would deem necessary 5 to ensure the health and safety of the minor child, unless 6 otherwise prohibited by a court order. 7 e. The right to access and review all school records 8 relating to the minor child; provided, however, that the school 9 district may prohibit access to and disclosure of school 10 records if any of the following apply: 11 (1) The school records are related to the minor child’s 12 reporting of the parent’s or guardian’s violation of any law. 13 (2) The school district determines based on actual threats 14 to the health, safety, or welfare of a minor child, that 15 providing access to or disclosing the school records may result 16 in serious harm to the minor child. 17 (3) Chapter 232, subchapter III, part 2, prohibits the 18 school record from being disclosed. 19 f. The right to access and review information related to the 20 collection and transmission of information related to the minor 21 child, including assessment information, documents created by 22 the minor child, and teacher evaluations of the minor child. 23 g. Subject to section 22.7, the right to access and 24 review information necessary to ensure the accountability and 25 transparency of the board of directors of the school district 26 in which the minor child is enrolled. 27 h. The right to access and review information related to the 28 minor child’s safety while at school. 29 2. a. The school district shall not require any student 30 to engage in any activity, including instruction, or any 31 test, assessment, or other means of evaluation, that involves 32 sexually explicit material without the express prior written 33 consent of the student’s parent or guardian, which may be 34 obtained by electronic means. 35 -2- SF 2369.4191 (2) 89 jda/jh 2/ 31

b. The school district shall make every effort to prohibit 1 a minor child from accessing sexually explicit material in the 2 classroom on a device or through a computer network that is 3 owned or otherwise provided by the school district. 4 c. (1) A school district that maintains in electronic form 5 a catalog of library materials shall grant access through the 6 internet or other suitable means to the catalog of library 7 materials to the parent or guardian of any student enrolled in 8 the school district. School districts that maintain a catalog 9 of library materials in other than electronic form shall 10 grant physical access to the catalog of library materials to 11 the parent or guardian of any student enrolled in the school 12 district at the school where the student attends class and at 13 times that are convenient for the parent or guardian. 14 (2) The parent or guardian of a minor child enrolled in 15 the school district may provide notice to the school district 16 indicating the materials that the minor child shall not be 17 allowed to check out from a library operated by the school 18 district, and the school district shall not allow the minor 19 child to check out the materials described in the notice. 20 (3) If a school district does not maintain in electronic 21 form a catalog of library materials, the school district shall 22 not allow a minor child to check out sexually explicit material 23 from a library operated by the school district without the 24 express prior written consent of the minor child’s parent or 25 guardian, which may be obtained by electronic means. 26 3. The school district must receive the prior written 27 consent of a student’s parent or guardian before requiring a 28 student to take part in any of the following activities: 29 a. An activity that involves the collection, disclosure, 30 or use of personal information collected from students for the 31 purpose of marketing or selling the information or providing 32 the information to any other person for its marketing or sale. 33 b. A survey, analysis, or evaluation that reveals 34 information concerning any of the following: 35 -3- SF 2369.4191 (2) 89 jda/jh 3/ 31

(1) The political affiliations or beliefs of the student or 1 the student’s parent or guardian. 2 (2) Mental or psychological problems of the student or the 3 student’s family. 4 (3) Sex behavior or attitudes. 5 (4) Illegal, antisocial, self-incriminating, or demeaning 6 behavior. 7 (5) Critical appraisals of other individuals with whom the 8 student has close familial relationships. 9 (6) Legally recognized privileged or analogous 10 relationships, such as those of attorneys, physicians, or 11 ministers. 12 (7) Religious practices, affiliations, or beliefs of the 13 student or the student’s parent or guardian. 14 (8) Income, except when required by law to determine 15 eligibility for participation in a program or for receiving 16 financial assistance under such a program. 17 c. Any nonemergency, invasive physical examination or 18 screening that is required as a condition of attendance, 19 administered by the school and is scheduled in advance, and 20 that is not necessary to protect the immediate health and 21 safety of the student or other students. 22 4. The rights guaranteed to parents and guardians by this 23 section are not a comprehensive list of the rights reserved 24 to parents or guardians of a minor child. The enumeration of 25 the rights contained in this section shall not be construed to 26 limit the rights reserved to parents or guardians of a minor 27 child. 28 5. The school district shall publish a copy of this section 29 in the student handbook and on the school district’s internet 30 site. 31 6. For purposes of this section, unless the context 32 otherwise requires: 33 a. “Material” means the same as defined in section 728.1. 34 b. “Minor child” means an individual under eighteen years 35 -4- SF 2369.4191 (2) 89 jda/jh 4/ 31

of age. 1 c. “Sexually explicit material” means any material that 2 meets all of the following criteria: 3 (1) Taken as a whole with respect to minor children, the 4 material appeals to the prurient interest in nudity, sex, or 5 excretion. 6 (2) The material depicts, describes, or represents, in a 7 patently offensive way with respect to what is suitable for 8 minor children, a sex act or lewd exhibition of the genitals. 9 For purposes of this subparagraph, “lewd exhibition of the 10 genitals” includes any material depicting genitalia in which 11 the place or pose of the person in the depiction is sexually 12 suggestive, any visual depiction that suggests sexual coyness 13 or a willingness to engage in sexual activity, or any visual 14 depiction that is intended or designed to elicit a sexual 15 response from the viewer. 16 (3) Taken as a whole, the material lacks serious literary, 17 artistic, political, or scientific value as to minors. For 18 purposes of this subparagraph, material lacks serious literary, 19 artistic, political, or scientific value as to minor children 20 if the material contains material described in subparagraphs 21 (1) and (2) when substantially similar material is readily 22 available to minor children that does not contain material 23 described in subparagraphs (1) and (2) but that conveys a 24 substantially similar message or viewpoint. 25 d. “Visual depiction” includes any picture, slide, 26 photograph, digital or electronic image, negative image, 27 undeveloped film, motion picture, videotape, digital or 28 electronic recording, live transmission, or any other pictorial 29 or three-dimensional representation. 30 DIVISION II 31 STUDENT FIRST SCHOLARSHIP PROGRAM 32 Sec. 4. Section 256.9, Code 2022, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 65. Adopt rules relating to the 35 -5- SF 2369.4191 (2) 89 jda/jh 5/ 31

administration of and applications for the student first 1 scholarship program pursuant to section 257.11B, including but 2 not limited to application processing timelines and information 3 required to be submitted by a parent or guardian. 4 Sec. 5. Section 257.11, subsection 5, Code 2022, is amended 5 to read as follows: 6 5. Shared operational functions —— increased student 7 opportunities —— budget years beginning in 2014 through 2024 8 2034 . 9 a. (1) In order to provide additional funding to increase 10 student opportunities and redirect more resources to student 11 programming for school districts that share operational 12 functions, a district that shares with a political subdivision 13 one or more operational functions of a curriculum director, 14 master social worker, independent social worker, work-based 15 learning coordinator, special education director, mental health 16 professional who holds a statement of recognition issued by the 17 board of educational examiners, a school resource officer, or 18 school counselor, or one or more operational functions in the 19 areas of superintendent management, business management, human 20 resources, transportation, or operation and maintenance for at 21 least twenty percent of the school year shall be assigned a 22 supplementary weighting for each shared operational function. 23 A school district that shares an operational function in 24 the area of superintendent management shall be assigned a 25 supplementary weighting of eight pupils for the function. A 26 school district that shares an operational function in the area 27 of business management, human resources, transportation, or 28 operation and maintenance shall be assigned a supplementary 29 weighting of five pupils for the function. A school district 30 that shares the operational functions of a curriculum director; 31 a master social worker or an independent social worker licensed 32 under chapters 147 and 154C ; a work-based learning coordinator; 33 a special education director; a mental health professional 34 who holds a statement of recognition issued by the board 35 -6- SF 2369.4191 (2) 89 jda/jh 6/ 31

of educational examiners; a school resource officer; or a 1 school counselor shall be assigned a supplementary weighting 2 of three pupils for the function. The additional weighting 3 shall be assigned for each discrete operational function 4 shared. However, a school district may receive the additional 5 weighting under this subsection for sharing the services of an 6 individual with a political subdivision even if the type of 7 operational function performed by the individual for the school 8 district and the type of operational function performed by 9 the individual for the political subdivision are not the same 10 operational function, so long as both operational functions are 11 eligible for weighting under this subsection . In such case, 12 the school district shall be assigned the additional weighting 13 for the type of operational function that the individual 14 performs for the school district, and the school district 15 shall not receive additional weighting for any other function 16 performed by the individual. The operational function sharing 17 arrangement does not need to be a newly implemented sharing 18 arrangement to receive supplementary weighting under this 19 subsection . 20 (2) For the purposes of this paragraph “a” : 21 (a) “Political subdivision” means a city, township, county, 22 school corporation, merged area, area education agency, 23 institution governed by the state board of regents, or any 24 other governmental subdivision. 25 (b) “School resource officer” means the same as defined in 26 34 U.S.C. §10389. 27 (b) (c) “Work-based learning coordinator” means an 28 appropriately trained individual responsible for facilitating 29 authentic, engaging work-based learning experiences for 30 learners and educators in partnership with employers and others 31 to enhance learning by connecting the content and skills that 32 are necessary for future careers. 33 b. (1) Notwithstanding paragraph “a” , subparagraph (1), 34 each operational function assigned a supplementary weighting 35 -7- SF 2369.4191 (2) 89 jda/jh 7/ 31

of five pupils under paragraph “a” , subparagraph (1), shall 1 instead be assigned a supplementary weighting of four pupils 2 for the school budget years beginning July 1, 2022, July 1, 3 2023, and July 1, 2024 through July 1, 2034 . 4 (2) Notwithstanding paragraph “a” , subparagraph (1), each 5 operational function assigned a supplementary weighting of 6 three pupils under paragraph “a” , subparagraph (1), shall 7 instead be assigned a supplementary weighting of two pupils for 8 the school budget years beginning July 1, 2022, July 1, 2023, 9 and July 1, 2024 through July 1, 2034 . 10 c. School districts that share operational functions with 11 other school districts are not required to be contiguous school 12 districts. If two or more districts sharing operational 13 functions are not contiguous to each other, the districts 14 separating those districts are not required to be a party to 15 the operational functions sharing arrangement. 16 d. Supplementary weighting pursuant to this subsection 17 shall be available to a school district during the period 18 commencing with the budget year beginning July 1, 2014, 19 through the budget year beginning July 1, 2024 2034 . The 20 maximum amount of additional weighting for which a school 21 district shall be eligible in a budget year is twenty-one 22 additional pupils ; provided, however, that the maximum amount 23 of additional weighting for which a school district shall be 24 eligible in a budget year may be increased to up to twenty-four 25 additional pupils if approved pursuant to section 257.16E . 26 Criteria for determining the qualification of operational 27 functions for supplementary weighting shall be determined by 28 the department by rule, through consideration of increased 29 student opportunities. 30 e. Supplementary weighting pursuant to this subsection shall 31 be available to an area education agency during the period 32 commencing with the budget year beginning July 1, 2014, through 33 the budget year beginning July 1, 2024 2034 . The minimum 34 amount of additional funding for which an area education 35 -8- SF 2369.4191 (2) 89 jda/jh 8/ 31

agency shall be eligible in a budget year is thirty thousand 1 dollars, and the maximum amount of additional funding for which 2 an area education agency shall be eligible is two hundred 3 thousand dollars. The department of management shall annually 4 set a weighting for each area education agency to generate 5 the approved operational sharing expense using the area 6 education agency’s special education cost per pupil amount and 7 foundation level. Criteria for determining the qualification 8 of operational functions for supplementary weighting shall be 9 determined by the department by rule, through consideration of 10 increased student opportunities. 11 f. This subsection is repealed effective July 1, 2025 2035 . 12 Sec. 6. NEW SECTION . 257.11B Student first scholarship 13 program. 14 1. a. For the school budget year beginning July 1, 2022, 15 and each succeeding school budget year, the following resident 16 pupils shall be eligible to receive a student first scholarship 17 in the manner provided in this section: 18 (1) A pupil whose household has an annual income which 19 is less than or equal to four hundred percent of the most 20 recently revised poverty income guidelines published by the 21 United States department of health and human services. The 22 total number of student first scholarships the department of 23 education approves for pupils pursuant to this subparagraph 24 shall not exceed five thousand in a school year. However, if 25 the number of student first scholarships received by pupils 26 pursuant to subparagraph (2) is less than the number of student 27 first scholarships reserved for pupils under subparagraph (2), 28 the department of education may approve the difference for 29 pupils pursuant to this subparagraph for the same school year. 30 (2) A pupil who has an individualized education program. 31 The total number of student first scholarships the department 32 of education approves for pupils pursuant to this subparagraph 33 shall not exceed five thousand in a school year. However, if 34 the number of student first scholarships received by pupils 35 -9- SF 2369.4191 (2) 89 jda/jh 9/ 31

pursuant to subparagraph (1) is less than the number of student 1 first scholarships reserved for pupils under subparagraph (1), 2 the department of education may approve the difference for 3 pupils pursuant to this subparagraph for the same school year. 4 (3) A pupil who received a student first scholarship 5 for the immediately preceding school budget year, who is 6 eligible to enroll in grade one through grade twelve, who meets 7 the requirements of subparagraph (1) or (2) and who is not 8 otherwise ineligible under this section. 9 b. Student first scholarships shall be made available to 10 parents and guardians in the manner authorized under subsection 11 4, paragraph “c” , for the payment of qualified educational 12 expenses as provided in this section. 13 c. No more than ten thousand student first scholarships 14 shall be made available each school year. 15 d. For purposes of this subsection, “resident” means the 16 same as defined in section 282.1, subsection 2. 17 2. a. By January 1 preceding the school year for which the 18 student first scholarship is requested, all of the following 19 individuals may request a student first scholarship by 20 submitting an application to the department of education, on 21 application forms developed by the department of education, 22 indicating the individual intends to enroll the pupil in a 23 nonpublic school for the entirety of the school year: 24 (1) The parent or guardian of a pupil currently enrolled 25 in a school district who has been enrolled in that school 26 district for the equivalent of at least two semesters 27 immediately preceding the school year for which the student 28 first scholarship is requested. 29 (2) The parent or guardian of a pupil who is eligible to 30 enroll in a school district for kindergarten in the next school 31 year. 32 (3) The parent or guardian of pupil enrolled in a nonpublic 33 school who received a student first scholarship in the current 34 school year. 35 -10- SF 2369.4191 (2) 89 jda/jh 10/ 31

b. By February 1 preceding the school year for which the 1 student first scholarship is requested, the department of 2 education shall determine the number of pupils in each school 3 district approved to receive a scholarship for the following 4 school year and shall notify the parent or guardian of each 5 pupil approved for the following school year to receive a 6 scholarship and the amount of the scholarship for the pupil. 7 The department of education shall approve pupils who received 8 a student first scholarship for the immediately preceding 9 school budget year who are eligible to enroll in grade one 10 through grade twelve, who meet the requirements of subsection 11 1, paragraph “a” , subparagraph (1) or (2), and who are not 12 otherwise ineligible under this section. The department 13 of education shall approve the remaining pupils who did 14 not receive a student first scholarship for the immediately 15 preceding school budget year, subject to the limitation in 16 subsection 1, paragraph “c” , on a first-come, first-served 17 basis based on the date the parent or guardian submitted the 18 application pursuant to paragraph “a” . 19 c. Student first scholarships shall only be approved for 20 one school year and applications must be submitted annually for 21 student first scholarships in subsequent school years. 22 3. The department of education shall assign each pupil a 23 student first scholarship in an amount equal to the sum of all 24 the following for the same school budget year: 25 a. The product of the pupil’s weighted enrollment that 26 would otherwise be assigned to the pupil under this chapter if 27 the pupil was enrolled in the pupil’s district of residence 28 multiplied by the difference between eighty-eight and 29 four-tenths percent of the regular program state cost per pupil 30 and the statewide average foundation property tax per pupil. 31 b. The total teacher salary supplement district cost per 32 pupil for the pupil’s district of residence. 33 c. The total professional development supplement district 34 cost per pupil for the pupil’s district of residence. 35 -11- SF 2369.4191 (2) 89 jda/jh 11/ 31

d. The total early intervention supplement district cost per 1 pupil for the pupil’s district of residence. 2 e. The total area education agency teacher salary supplement 3 district cost per pupil for the pupil’s district of residence. 4 f. The total area education agency professional development 5 supplement district cost per pupil for the pupil’s district of 6 residence. 7 g. The total teacher leadership supplement district cost per 8 pupil for the pupil’s district of residence. 9 4. A student first scholarship fund is created in the 10 state treasury under the control of the department of 11 education consisting of moneys appropriated to the department 12 of education for the purpose of providing student first 13 scholarships under this section. For the fiscal year 14 commencing July 1, 2022, and each succeeding fiscal year, there 15 is appropriated from the general fund of the state to the 16 department of education to be credited to the fund the amount 17 necessary to pay all student first scholarships approved for 18 that fiscal year. The director of the department of education 19 has all powers necessary to carry out and effectuate the 20 purposes, objectives, and provisions of this section pertaining 21 to the fund, including the power to do all of the following: 22 a. Make and enter into contracts necessary for the 23 administration of the fund. 24 b. Procure insurance against any loss in connection with the 25 assets of the fund or require a surety bond. 26 c. Contract with a private financial management firm to 27 manage the fund, in collaboration with the treasurer of state, 28 including providing for the disbursement of student first 29 scholarships in the form of an electronic debit card or checks 30 that are payable directly from the pupil’s account within the 31 fund. 32 d. Conduct audits or other reviews necessary to properly 33 administer the program. 34 e. Adopt rules for the administration of the fund and 35 -12- SF 2369.4191 (2) 89 jda/jh 12/ 31

accounts within the fund. 1 5. a. For each pupil approved for a student first 2 scholarship, the nonpublic school shall certify the pupil’s 3 enrollment and the department of education shall establish an 4 account for that pupil in the student first scholarship fund. 5 The amount of the pupil’s student first scholarship shall be 6 deposited into the pupil’s account on July 1, and such amount 7 shall be immediately available for the payment of qualified 8 educational expenses incurred by the parent or guardian for 9 the pupil during that fiscal year using the payment method 10 authorized under subsection 4, paragraph “c” . 11 b. A nonpublic school that accepts payment from a parent 12 or guardian using funds from a pupil’s account in the student 13 first scholarship fund shall not refund, rebate, or share any 14 portion of such payment with the parent, guardian, or pupil. 15 c. Moneys remaining in a pupil’s account upon conclusion 16 of the fiscal year shall remain in the pupil’s account in the 17 student first scholarship fund for the payment of qualified 18 educational expenses in future fiscal years during which the 19 pupil participates in the program until the pupil becomes 20 ineligible under the program or until the remaining amounts are 21 transferred to the state general fund under subsection 8. 22 6. a. For purposes of this section, “qualified educational 23 expenses” includes tuition and fees at a nonpublic school, 24 textbooks, fees or payments for educational therapies, 25 including tutoring or cognitive skills training, curriculum 26 fees, software, and materials for a course of study for a 27 specific subject matter or grade level, tuition or fees for 28 nonpublic online education programs, tuition for vocational and 29 life skills education approved by the department of education, 30 education materials and services for pupils with disabilities, 31 including the cost of paraprofessionals and assistants who are 32 trained in accordance with state law, standardized test fees, 33 advanced placement examinations or examinations related to 34 postsecondary education admission or credentialing, qualified 35 -13- SF 2369.4191 (2) 89 jda/jh 13/ 31

education expenses, as defined in section 12D.1, excluding 1 room and board expenses, and other expenses incurred by the 2 parent or guardian that are directly related to the education 3 of the pupil at a nonpublic school, including a nonpublic 4 school accredited by an independent accrediting agency approved 5 by the department of education. The cost of one computer or 6 other portable computing device shall be allowed as a qualified 7 educational expense for a pupil if the computer or portable 8 computing device is used primarily for the education of the 9 pupil and if such a purchase has not been made using funds from 10 that pupil’s account in any of the three immediately preceding 11 fiscal years. 12 b. “Qualified educational expenses” does not include 13 transportation costs for the pupil, the cost of food or 14 refreshments consumed by the pupil, the cost of clothing for 15 the pupil, or the cost of disposable materials, including 16 but not limited to paper, notebooks, pencils, pens, and art 17 supplies. 18 7. a. A person who makes a false claim for the purpose 19 of obtaining a student first scholarship provided for in this 20 section or who knowingly receives the scholarship or makes a 21 payment from an account within the student first scholarship 22 fund without being legally entitled to do so is guilty of a 23 fraudulent practice under chapter 714. The false claim for a 24 student first scholarship or a payment from an account shall 25 be disallowed. The department of education shall also close 26 the pupil’s account in the student first scholarship fund and 27 transfer any remaining moneys in the account for deposit in the 28 general fund of the state. If the improperly obtained amounts 29 from the scholarship have been disbursed from the applicable 30 account in the student first scholarship fund, the department 31 of education shall recover such amounts from the parent or 32 guardian, including by initiating legal proceedings to recover 33 such amounts, if necessary. A parent or guardian who commits 34 a fraudulent practice under this section is prohibited from 35 -14- SF 2369.4191 (2) 89 jda/jh 14/ 31

participating in the student first scholarship program in the 1 future. 2 b. If, prior to the end of the required attendance 3 period of the school year, a pupil who receives a student 4 first scholarship withdraws from enrollment in the nonpublic 5 school or is expelled, the nonpublic school shall notify the 6 department of education in writing of the pupil’s withdrawal 7 or expulsion, and the pupil’s parent or guardian shall notify 8 the department of education of the pupil’s withdrawal or 9 expulsion from the nonpublic school. A pupil’s expulsion 10 from the nonpublic school prior to the end of the required 11 attendance period for the school year shall invalidate the 12 pupil’s eligibility for the student first scholarship for the 13 school budget year. A pupil’s withdrawal from a nonpublic 14 school prior to the end of the required attendance period of 15 the school year shall invalidate the pupil’s eligibility for 16 the student first scholarship for the school budget year unless 17 the withdrawal is the result of a change in residence of the 18 pupil and the pupil, following written notice by the parent 19 or guardian and certification by the new nonpublic school to 20 the department of education, enrolls in a different nonpublic 21 school in this state for the remainder of the school year. 22 c. (1) Upon receipt of a notice of expulsion under 23 paragraph “b” , the department of education shall close the 24 pupil’s account in the student first scholarship fund and 25 transfer any remaining moneys in the account for deposit in 26 the general fund of the state. In addition, if amounts from 27 the scholarship for the school budget year during which the 28 pupil is expelled have been disbursed from the expelled pupil’s 29 account in the student first scholarship fund, the department 30 of education shall recover such amounts from the parent or 31 guardian, including by initiating legal proceedings to recover 32 such amounts, if necessary. 33 (2) Upon receipt of a notice of withdrawal under paragraph 34 “b” and a determination that the pupil’s withdrawal was 35 -15- SF 2369.4191 (2) 89 jda/jh 15/ 31

not the result of a change in residence, the department of 1 education shall cease disbursements of remaining moneys in 2 the pupil’s account in the student first scholarship fund, 3 close the pupil’s account, and transfer any moneys remaining 4 in the pupil’s account for deposit in the general fund of 5 the state. In addition, if amounts from the scholarship for 6 the school budget year during which the withdrawal occurs 7 have been disbursed from the pupil’s account in the student 8 first scholarship fund, the department of education shall 9 recover such amounts from the parent or guardian to the extent 10 the amount disbursed exceeds the amount of the scholarship 11 proportionate to the remaining portion of the school year 12 following the withdrawal, including by initiating legal 13 proceedings to recover such amounts, if necessary. 14 (3) Upon receipt of a notice of withdrawal under paragraph 15 “b” and a determination that the withdrawal was the result of 16 a change in residence but that the pupil did not enroll in 17 a different nonpublic school in this state for the remainder 18 of the school year, the department of education shall cease 19 disbursements of remaining moneys in the pupil’s account in 20 the student first scholarship fund, close the pupil’s account, 21 and transfer any moneys remaining in the pupil’s account for 22 deposit in the general fund of the state. 23 (4) If a pupil’s eligibility is invalidated under the 24 provisions of paragraph “b” , the pupil shall be ineligible for a 25 student first scholarship for the following school budget year 26 under subsection 1, paragraph “a” , subparagraphs (2) and (3). 27 8. Moneys remaining in a pupil’s account when the pupil 28 graduates from high school or turns twenty-one years of age, 29 whichever occurs first, shall be transferred by the department 30 of education for deposit in the general fund of the state. 31 9. a. A parent may appeal to the state board of education 32 any administrative decision the department of education 33 makes pursuant to this section, including but not limited 34 to determinations of eligibility, allowable expenses, and 35 -16- SF 2369.4191 (2) 89 jda/jh 16/ 31

removal from the program. The department shall notify the 1 parent or guardian in writing of the appeal process at the same 2 time the department notifies the parent or guardian of the 3 administrative decision. The state board of education shall 4 establish the appeals process consistent with chapter 17A and 5 shall post such appeal process information on the state board 6 of education’s internet site. 7 b. The state board of education shall refer cases of 8 substantial misuse of student first scholarship funds to the 9 attorney general for the purpose of collection or for the 10 purpose of a criminal investigation if the state board of 11 education obtains evidence of fraudulent use of an account. 12 10. a. This section shall not be construed to authorize 13 the state or any political subdivision of the state to exercise 14 authority over any nonpublic school or construed to require a 15 nonpublic school to modify its academic standards for admission 16 or educational program in order to receive payment from a 17 parent or guardian using funds from a pupil’s account in the 18 student first scholarship fund. 19 b. This section shall not be construed to expand the 20 authority of the state or any political subdivision of the 21 state to impose regulations upon any nonpublic school that are 22 not necessary to implement this section. 23 c. A nonpublic school that accepts payment from a parent 24 or guardian using funds from a pupil’s account in the student 25 first scholarship fund is not an agent of this state or of a 26 political subdivision of this state. 27 d. Rules adopted by the department of education to implement 28 this section that impose an undue burden on a nonpublic school 29 are invalid. 30 e. A nonpublic school that accepts payment from a parent 31 or guardian using funds from a pupil’s account in the student 32 first scholarship fund shall be given the maximum freedom 33 possible to provide for the educational needs of the school’s 34 students, consistent with state and federal law. 35 -17- SF 2369.4191 (2) 89 jda/jh 17/ 31

Sec. 7. NEW SECTION . 257.16E Student first operational 1 sharing fund. 2 1. A student first operational sharing fund is created as 3 a separate and distinct fund in the state treasury under the 4 control of the department of management. Moneys in the fund 5 include revenues credited to the fund, appropriations made to 6 the fund, and other moneys deposited into the fund. 7 2. a. For each fiscal year beginning on or after July 1, 8 2023, there is appropriated annually from the general fund of 9 the state to the department of management for deposit in the 10 student first operational sharing fund an amount equal to the 11 product of the number of student first scholarships approved 12 under section 257.11B for the base year multiplied by the sum 13 of the statewide average foundation property tax per pupil plus 14 the difference between the amount determined under section 15 257.16B, subsection 2, paragraph “c” , subparagraph (2), and 16 the amount determined under section 257.16B, subsection 2, 17 paragraph “c” , subparagraph (1). 18 b. The moneys available in a fiscal year in the student 19 first operational sharing fund shall be used to increase the 20 maximum amount of additional weighting established pursuant to 21 section 257.11, subsection 5, paragraph “d” , from twenty-one 22 additional pupils up to twenty-four additional pupils if the 23 school district requests the additional weighting from the 24 school budget review committee, and the school budget review 25 committee approves the additional weighting after examining 26 the need for the position requested. If the moneys in the 27 student first operational sharing fund are insufficient to make 28 the payments required by section 257.11, subsection 5, the 29 remainder shall be paid as foundation aid pursuant to section 30 257.16. 31 3. Payments to school districts under this section shall 32 be paid at the same time and in the same manner as foundation 33 aid is paid under section 257.16, and may be included in the 34 monthly payment of state aid under section 257.16, subsection 35 -18- SF 2369.4191 (2) 89 jda/jh 18/ 31

2. 1 4. Notwithstanding section 8.33, any moneys remaining 2 in the student first operational sharing fund at the end of 3 a fiscal year shall not revert to any other fund but shall 4 remain in the student first operational sharing fund for use as 5 provided in this section for the following fiscal year. 6 Sec. 8. Section 257.31, subsection 16, Code 2022, is amended 7 to read as follows: 8 16. The committee shall perform the duties assigned to it 9 under sections 257.16E, 257.32 , 257.40 , and 260C.18B . 10 Sec. 9. Section 422.7, Code 2022, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 51. Subtract, to the extent included, the 13 amount of a student first scholarship under section 257.11B 14 received by the taxpayer for payment of qualified educational 15 expenses. 16 Sec. 10. STUDENT FIRST SCHOLARSHIP PROGRAM APPLICATIONS FOR 17 THE SCHOOL YEAR BEGINNING JULY 1, 2022. 18 1. Notwithstanding the deadline in section 257.11B, 19 subsection 2, paragraph “a”, as enacted in this division of 20 this Act, by May 1 preceding the school year beginning July 21 1, 2022, the parent or guardian of a pupil who is enrolled in 22 a school district or who is eligible to enroll in a school 23 district for kindergarten in the next school year, and who is 24 requesting a student first scholarship for the school year 25 beginning July 1, 2022, may request a student first scholarship 26 by submitting an application to the department of education, 27 on application forms developed by the department of education, 28 indicating that the parent or guardian intends to enroll the 29 pupil in a nonpublic school for the entirety of the school year 30 beginning July 1, 2022. 31 2. Notwithstanding the deadline in section 257.11B, 32 subsection 2, paragraph “b”, as enacted in this division of 33 this Act, by June 1 preceding the school year beginning July 34 1, 2022, the department of education shall determine the 35 -19- SF 2369.4191 (2) 89 jda/jh 19/ 31