House File 2754 H-8371 Amend House File 2754 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 CHARTER SCHOOLS 5 Section 1. Section 29E.1, subsection 1, paragraph b, 6 subparagraph (4), Code 2026, is amended by striking the 7 subparagraph. 8 Sec. 2. Section 232E.1, subsection 6, Code 2026, is amended 9 to read as follows: 10 6. “Public school district” means a public school district 11 as described in chapter 274 , and includes a charter school 12 under chapter 256E , or a charter school or an innovation zone 13 school under chapter 256F . 14 Sec. 3. Section 256.7, subsection 15, Code 2026, is amended 15 to read as follows: 16 15. Adopt rules under chapter 17A that require school 17 districts, accredited nonpublic schools, and charter schools , 18 and innovation zone schools to include information regarding 19 the exemptions and requirements for an exemption described 20 in section 139A.8, subsection 4 , in any communication to 21 the parent or guardian of a student that is related to the 22 immunizations required under section 139A.8 . 23 Sec. 4. Section 256.9, subsections 69, 71, 73, and 78, Code 24 2026, are amended to read as follows: 25 69. On or before May 1, 2025, develop and distribute to 26 school districts, accredited nonpublic schools, and charter 27 schools , and innovation zone schools model policies that, if 28 adopted, would satisfy a school district’s responsibilities 29 under section 279.88 relating to policies governing student use 30 of personal electronic devices. 31 71. Develop and distribute to school districts, accredited 32 nonpublic schools, and charter schools , and innovation 33 zone schools family-centered resources to support student 34 development of mathematics knowledge at home. 35 -1- HF 2754.4036 (1) 91 jda/jh 1/ 53 #1.
73. On or before July 1, 2025, develop and distribute to 1 school districts, accredited nonpublic schools, and charter 2 schools , and innovation zone schools a comprehensive state 3 mathematics plan that is designed to increase the level of 4 mathematics proficiency attained by students using systematic 5 and sequential approaches to teaching subitizing, cardinality, 6 object counting, verbal counting, spatial relationships, 7 benchmark numbers, and part-part-whole models. 8 78. a. Develop and distribute to school districts, 9 accredited nonpublic schools, and charter schools , and 10 innovation zone schools a test in multiple-choice format that 11 consists of all of the questions contained in the most recent 12 version of the civics test developed by the United States 13 citizenship and immigration services. 14 b. On or before the January 31 immediately subsequent to 15 each general election which is a presidential election, update 16 the test described in paragraph “a” and distribute the updated 17 test to school districts, accredited nonpublic schools, and 18 charter schools , and innovation zone schools . 19 Sec. 5. Section 256.163, subsection 1, Code 2026, is amended 20 by adding the following new paragraph: 21 NEW PARAGRAPH . f. A charter school established pursuant to 22 chapter 256E, subchapter I. 23 Sec. 6. Section 256E.1, subsection 2, paragraphs a and b, 24 Code 2026, are amended to read as follows: 25 a. A school board may create a founding group to apply to 26 the state board or the university of northern Iowa for approval 27 to establish and operate a charter school within and as a part 28 of the school district by establishing a new attendance center, 29 creating a new school within an existing attendance center, or 30 by converting an existing attendance center to charter status. 31 b. A founding group may apply to the state board or the 32 university of northern Iowa for approval to establish and 33 operate a charter school within the boundaries of the state 34 that operates as a new attendance center independently from a 35 -2- HF 2754.4036 (1) 91 jda/jh 2/ 53
public school district. 1 Sec. 7. Section 256E.1, subsection 3, unnumbered paragraph 2 1, Code 2026, is amended to read as follows: 3 The purpose of a charter school established pursuant to this 4 chapter subchapter shall be to accomplish the following: 5 Sec. 8. Section 256E.1, subsection 3, paragraph d, Code 6 2026, is amended to read as follows: 7 d. Accelerating student learning to prevent learning loss 8 during the COVID-19 pandemic and other significant disruptions 9 to student learning. 10 Sec. 9. Section 256E.1, subsection 4, Code 2026, is amended 11 to read as follows: 12 4. The state board of education and the university of 13 northern Iowa shall be the only authorizer authorizers of 14 charter schools under this chapter subchapter . 15 Sec. 10. Section 256E.2, unnumbered paragraph 1, Code 2026, 16 is amended to read as follows: 17 As used in this chapter subchapter , unless the context 18 otherwise requires: 19 Sec. 11. Section 256E.2, subsections 2 and 5, Code 2026, are 20 amended to read as follows: 21 2. “Charter school” means a school established in accordance 22 with this chapter subchapter . 23 5. “Founding group” means a person, group of persons, 24 or education service provider that develops and submits an 25 application for a charter school to the state board or the 26 university of northern Iowa under this chapter subchapter . 27 Sec. 12. Section 256E.3, Code 2026, is amended to read as 28 follows: 29 256E.3 Department —— duty to monitor. 30 The department shall monitor the effectiveness of charter 31 schools and shall implement the applicable provisions of this 32 chapter subchapter . 33 Sec. 13. Section 256E.4, subsections 1, 2, 3, 5, 6, 7, 8, 9, 34 and 10, Code 2026, are amended to read as follows: 35 -3- HF 2754.4036 (1) 91 jda/jh 3/ 53
1. A school board may create a founding group to apply to 1 the state board or the university of northern Iowa for approval 2 to establish and operate a charter school within and as a part 3 of the school district by establishing a new attendance center, 4 creating a new school within an existing attendance center, or 5 by converting an existing attendance center. The application 6 shall demonstrate the founding group’s academic and operational 7 vision and plans for the proposed charter school, demonstrate 8 the founding group’s capacity to execute the vision and plans, 9 and provide the state board or the university of northern Iowa 10 a clear basis for assessing the founding group’s plans and 11 capacity. 12 2. The state board , in consultation with the university 13 of northern Iowa, shall adopt rules to establish appropriate 14 application timelines and deadlines for the submission of 15 charter school applications under this section . 16 3. The instructions for completing an application shall 17 include or otherwise inform applicants of all of the following: 18 a. The performance framework adopted by the state board , in 19 consultation with the university of northern Iowa, for charter 20 school oversight and evaluation requirements in accordance with 21 sections 256E.9 and 256E.10 . 22 b. The criteria the state board or the university of 23 northern Iowa will use in evaluating applications. 24 c. The requirements concerning the format and content 25 essential for applicants to demonstrate the capacities 26 necessary to establish and operate a successful charter school. 27 5. If the founding group proposes to establish a charter 28 school by converting an existing attendance center of the 29 school district, the state board or the university of northern 30 Iowa shall not approve the application unless the founding 31 group submits evidence that the attendance center’s teachers 32 and parents or guardians of students enrolled at the existing 33 attendance center voted in favor of the conversion. A vote 34 in favor of conversion under this subsection requires the 35 -4- HF 2754.4036 (1) 91 jda/jh 4/ 53
support of a majority of the teachers employed at the school 1 on the date of the vote and a majority of the parents or 2 guardians voting whose children are enrolled at the school, 3 provided that a majority of the parents or guardians eligible 4 to vote participate in the ballot process. The state board , 5 in consultation with the university of northern Iowa, shall 6 establish procedures by rule for voting under this subsection . 7 A parent or guardian voting in accordance with this subsection 8 must be a resident of this state. 9 6. In reviewing and evaluating charter school applications, 10 the state board and the university of northern Iowa shall 11 employ procedures, practices, and criteria consistent with 12 nationally recognized principles and standards for reviewing 13 charter school applications. Each application review shall 14 include thorough evaluation of the written application, an 15 in-person interview with the founding group, and an opportunity 16 in a public forum for local residents to learn about and 17 provide input on each application. 18 7. Following review of a charter school application and 19 completion of the process required under subsection 6 , the 20 state board or the university of northern Iowa shall do all of 21 the following: 22 a. Approve a charter school application only if the founding 23 group has demonstrated competence in each element of the 24 approval criteria and if the founding group is likely to open 25 and operate a successful charter school. 26 b. Make application decisions on documented evidence 27 collected through the application review process. 28 c. Adhere to the policies and criteria that are transparent, 29 based on merit, and avoid conflicts of interest or any 30 appearance thereof. 31 8. The state board or the university of northern Iowa 32 shall approve a charter school application if the application 33 satisfies the requirements of this chapter subchapter . The 34 state board or the university of northern Iowa shall approve or 35 -5- HF 2754.4036 (1) 91 jda/jh 5/ 53
deny a charter school application no later than seventy-five 1 calendar days after the application is received. If the state 2 board or the university of northern Iowa denies an application, 3 the state board or the university of northern Iowa shall 4 provide notice of denial to the founding group in writing 5 within thirty days after the state board’s or the university 6 of northern Iowa’s action. The notice shall specify the exact 7 reasons for denial and provide documentation supporting those 8 reasons. An approval decision may include, if appropriate, 9 reasonable conditions that the founding group must meet before 10 a charter school contract may be executed pursuant to section 11 256E.6 . An approved charter application shall not serve as a 12 charter school contract. 13 9. A decision of the state board or the university of 14 northern Iowa relating to an application under this section is 15 not appealable. 16 10. An unsuccessful applicant under this section may 17 subsequently reapply to the state board or the university of 18 northern Iowa . 19 Sec. 14. Section 256E.4, subsection 4, paragraph ab, Code 20 2026, is amended to read as follows: 21 ab. The specific statutes and administrative rules with 22 which the charter school does not intend to comply. The 23 department , in consultation with the university of northern 24 Iowa, shall provide technical assistance to the applicant 25 concerning statutes and administrative rules that may be waived 26 under the charter school contract in order to facilitate the 27 goals of the charter school. 28 Sec. 15. Section 256E.5, subsections 1, 2, 3, 5, 6, 8, 9, 29 and 10, Code 2026, are amended to read as follows: 30 1. A founding group may apply to the state board or the 31 university of northern Iowa for approval to establish and 32 operate a charter school within the boundaries of the state 33 that operates as a new attendance center independently from a 34 public school district. The application shall demonstrate the 35 -6- HF 2754.4036 (1) 91 jda/jh 6/ 53
founding group’s academic and operational vision and plans for 1 the proposed charter school, demonstrate the founding group’s 2 capacity to execute the vision and plans, and provide the state 3 board or the university of northern Iowa a clear basis for 4 assessing the founding group’s plans and capacity. 5 2. The state board , in consultation with the university 6 of northern Iowa, shall adopt rules to establish appropriate 7 application timelines and deadlines for the submission of 8 charter school applications under this section . 9 3. The instructions for completing an application shall 10 include or otherwise inform applicants of all of the following: 11 a. The performance framework adopted by the state board , in 12 consultation with the university of northern Iowa, for charter 13 school oversight and evaluation requirements in accordance with 14 sections 256E.9 and 256E.10 . 15 b. The criteria the state board or the university of 16 northern Iowa will use in evaluating applications. 17 c. The requirements concerning the format and content 18 essential for applicants to demonstrate the capacities 19 necessary to establish and operate a successful charter school. 20 5. In reviewing and evaluating charter school applications, 21 the state board and the university of northern Iowa shall 22 employ procedures, practices, and criteria consistent with 23 nationally recognized principles and standards for reviewing 24 charter school applications. Each application review shall 25 include thorough evaluation of the written application, an 26 in-person interview with the applicant, and an opportunity in a 27 public forum for local residents of the public school district 28 within which the applicant proposes to locate the charter 29 school to learn about and provide input on each application. 30 6. Following review of a charter school application and 31 completion of the process required under subsection 5 , the 32 state board or the university of northern Iowa shall do all of 33 the following: 34 a. Approve a charter school application only if the 35 -7- HF 2754.4036 (1) 91 jda/jh 7/ 53
applicant has demonstrated competence in each element of the 1 state board’s or the university of northern Iowa’s published 2 approval criteria and the applicant is likely to open and 3 operate a successful charter school. 4 b. Make application decisions on documented evidence 5 collected through the application review process. 6 c. Adhere to the policies and criteria that are transparent, 7 based on merit, and avoid conflicts of interest or any 8 appearance thereof. 9 8. The state board or the university of northern Iowa 10 shall approve a charter school application if the application 11 satisfies the requirements of this chapter subchapter . The 12 state board or the university of northern Iowa shall approve or 13 deny a charter school application no later than seventy-five 14 calendar days after the application is received. If the 15 state board or the university of northern Iowa denies an 16 application, the state board or the university of northern Iowa 17 shall provide notice of denial to the applicant in writing 18 within thirty days after board action. The notice shall 19 specify the exact reasons for denial and provide documentation 20 supporting those reasons. An approval decision may include, 21 if appropriate, reasonable conditions that the applicant must 22 meet before a charter school contract may be executed pursuant 23 to section 256E.6 . An approved charter application shall not 24 serve as a charter school contract. 25 9. An unsuccessful charter school applicant may 26 subsequently reapply to the state board or the university of 27 northern Iowa . 28 10. A decision of the state board or the university of 29 northern Iowa relating to an application under this section is 30 not appealable. 31 Sec. 16. Section 256E.5, Code 2026, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 1A. The governing board of a charter school 34 that is approved under this section shall be designated a local 35 -8- HF 2754.4036 (1) 91 jda/jh 8/ 53
education agency for the purpose of receiving federal funds for 1 all attendance centers that are under the jurisdiction of the 2 governing board. 3 Sec. 17. Section 256E.5, subsection 4, paragraph ab, Code 4 2026, is amended to read as follows: 5 ab. The specific statutes and administrative rules with 6 which the charter school does not intend to comply. The 7 department , in consultation with the university of northern 8 Iowa, shall provide technical assistance to the applicant 9 concerning statutes and administrative rules that may be waived 10 under the charter school contract in order to facilitate the 11 goals of the charter school. 12 Sec. 18. Section 256E.6, Code 2026, is amended to read as 13 follows: 14 256E.6 Charter school contract. 15 1. Within the later of thirty days following approval 16 of a charter school application or upon the satisfaction of 17 all reasonable conditions imposed on the applicant in the 18 charter school approval, if any, an enforceable and renewable 19 charter school contract shall be executed between the founding 20 group and the state board or the university of northern Iowa, 21 as applicable, setting forth the academic and operational 22 performance expectations and measures by which the charter 23 school will be evaluated pursuant to sections 256E.9 and 24 256E.10 and the other rights and duties of the parties. 25 2. An initial charter school contract shall be granted for 26 a term of five school budget years , commencing with the school 27 budget year in which the charter school opens . The charter 28 school contract shall include the beginning and ending dates 29 of the charter school contract term. An approved charter 30 school may delay its opening for a period of time not to exceed 31 one school year in order to plan and prepare for the charter 32 school’s opening shall open on the first day of the school year 33 that is two school years immediately subsequent to the school 34 year in which the charter school contract is executed under 35 -9- HF 2754.4036 (1) 91 jda/jh 9/ 53
subsection 1; provided, however, that the approved charter 1 school may open on the first day of the school year that is 2 immediately subsequent to the school year in which the charter 3 school contract is executed under subsection 1 if the approved 4 charter school demonstrates adequate preparation to the state 5 board or the university of northern Iowa . If the charter 6 school requires an opening delay of more than one school year 7 two school years immediately subsequent to the school year in 8 which the charter school contract is executed under subsection 9 1 , the charter school may request an extension from the state 10 board or the university of northern Iowa . 11 3. Each charter school contract shall be signed by 12 the president of the state board or the president of the 13 university of northern Iowa, as applicable, and the president 14 or appropriate officer of the governing body of the founding 15 group. 16 4. Within fifteen days of the execution of a charter school 17 contract entered into by the state board or the university of 18 northern Iowa , the state board or the university of northern 19 Iowa shall notify the department and the department of 20 management of the name of the charter school and any applicable 21 education service provider, the proposed location of the 22 charter school, and the charter school’s first year projected 23 enrollment. 24 5. A charter school approved under this chapter subchapter 25 shall not commence operations without a valid charter school 26 contract executed in accordance with this section and approved 27 in an open session of the state board or by the university of 28 northern Iowa . 29 6. The contract may provide for requirements or conditions 30 to govern and monitor the start-up progress of an approved 31 charter school prior to the opening of the charter school 32 from the date the charter school contract is executed 33 through the date the charter school opens, including but not 34 limited to conditions to ensure that the charter school meets 35 -10- HF 2754.4036 (1) 91 jda/jh 10/ 53
all building, health, safety, insurance, and other legal 1 requirements. 2 7. A charter school contract may be amended to govern 3 multiple charter schools operated by the same applicant and 4 approved by the state board or the university of northern Iowa . 5 However, each charter school that is part of a charter school 6 contract shall be separate and distinct from any other charter 7 school governed by the contract. 8 Sec. 19. Section 256E.7, subsection 1, unnumbered paragraph 9 1, Code 2026, is amended to read as follows: 10 In order to fulfill the charter school’s public purpose, a 11 charter school established under this chapter subchapter shall 12 be organized as a nonprofit education organization and shall 13 have all the powers necessary for carrying out the terms of 14 the charter school contract including but not limited to the 15 following, as applicable: 16 Sec. 20. Section 256E.7, subsection 2, unnumbered paragraph 17 1, Code 2026, is amended to read as follows: 18 A charter school established under this chapter subchapter 19 is exempt from all state statutes and rules and any local rule, 20 regulation, or policy, applicable to a noncharter school, 21 except that the charter school shall do all of the following: 22 Sec. 21. Section 256E.7, subsection 2, paragraphs g, i, and 23 w, Code 2026, are amended to read as follows: 24 g. Be subject to the same financial audits, audit 25 procedures, and audit requirements as a school district. The 26 audit shall be consistent with the requirements of sections 27 11.6 , 11.14 , 11.19 , and 279.29 , and section 256.9, subsection 28 20 , except to the extent deviations are necessary because of 29 the program at the school. The department, the university 30 of northern Iowa, the auditor of state, or the legislative 31 services agency may conduct financial, program, or compliance 32 audits. 33 i. Provide instruction for at least the number of days 34 or hours required by section 279.10, subsection 1 , unless 35 -11- HF 2754.4036 (1) 91 jda/jh 11/ 53
specifically waived by the state board or the university of 1 northern Iowa as part of the application process. 2 w. Comply with the requirements of this chapter subchapter . 3 Sec. 22. Section 256E.7, subsection 2, paragraph h, 4 unnumbered paragraph 1, Code 2026, is amended to read as 5 follows: 6 Be subject to and comply with the requirements of section 7 256.7, subsection 21 , and the educational standards of section 8 256.11 , unless specifically waived by the state board or the 9 university of northern Iowa during the application process; 10 provided, however, that the state board or the university of 11 northern Iowa shall not waive any of the following educational 12 standards: 13 Sec. 23. Section 256E.7, subsection 9, Code 2026, is amended 14 to read as follows: 15 9. Individuals compensated by an education service provider 16 are prohibited from serving as a voting member on the governing 17 board of any charter school unless the state board or the 18 university of northern Iowa waives such prohibition. 19 Sec. 24. Section 256E.8, subsections 1 and 4, Code 2026, are 20 amended to read as follows: 21 1. Each student enrolled in a charter school established 22 under this chapter subchapter shall be counted, for state 23 school foundation purposes, in the student’s district of 24 residence pursuant to section 257.6, subsection 1 , paragraph 25 “a” , subparagraph (9), including any applicable amounts under 26 section 256B.9 . For purposes of this section , residence means 27 a residence under section 282.1 . 28 4. If necessary, and pursuant to rules adopted by the 29 state board, in consultation with the university of northern 30 Iowa, funding amounts required under this section for the 31 first school year of a new charter school shall be based on 32 enrollment estimates for the charter school included in the 33 charter school contract. The department , in consultation 34 with the university of northern Iowa, shall adopt rules to 35 -12- HF 2754.4036 (1) 91 jda/jh 12/ 53
establish a process for determining estimated enrollments for 1 charter school funding purposes in school years after the first 2 school year of a charter school. Amounts paid using estimated 3 enrollments shall be reconciled during subsequent payments 4 based on actual enrollment of the charter school during each 5 school year. 6 Sec. 25. Section 256E.9, subsection 1, unnumbered paragraph 7 1, Code 2026, is amended to read as follows: 8 The performance provisions within the charter school 9 contract shall be based on a performance framework adopted 10 by the state board , in consultation with the university 11 of northern Iowa, that clearly sets forth the academic and 12 operational performance indicators, measures, and metrics that 13 will guide the evaluation of the charter school by the state 14 board or the university of northern Iowa , without compromising 15 individual student privacy. The performance framework shall 16 include but is not limited to indicators, measures, and metrics 17 for all of the following: 18 Sec. 26. Section 256E.9, subsections 2 and 5, Code 2026, are 19 amended to read as follows: 20 2. Annual performance targets shall be agreed upon between 21 each charter school and the state board , in consultation 22 with the university of northern Iowa, if applicable . Such 23 performance targets shall be contained in the charter school 24 contract and shall be designed to help each charter school 25 meet applicable federal, state, and local standards. The 26 performance targets contained in the charter school contract 27 may be amended by mutual agreement after the charter school is 28 operating and has collected initial achievement data for the 29 charter school’s students. 30 5. Each charter school established under this chapter 31 subchapter shall be evaluated and graded by the department 32 pursuant to the attendance center performance ranking system 33 developed and adopted by the department. 34 Sec. 27. Section 256E.10, subsections 1, 2, 6, 8, 12, and 35 -13- HF 2754.4036 (1) 91 jda/jh 13/ 53
13, Code 2026, are amended to read as follows: 1 1. The state board and the university of northern Iowa shall 2 monitor the performance and compliance of each charter school 3 the state board approves approved by the state board or the 4 university of northern Iowa , including collecting and analyzing 5 data according to the charter school contract in order to meet 6 the requirements of this chapter subchapter . Such oversight 7 may include inquiries and investigation of the charter school 8 so long as the activities are consistent with the intent of 9 this chapter subchapter , adhere to the terms of the charter 10 school contract, and do not unduly inhibit the autonomy granted 11 to the charter school. Any performance report resulting from 12 an inquiry or investigation under this section shall, upon 13 conclusion of such action, be included in the annual report 14 required under section 256E.12 . 15 2. As part of the charter school contract, the charter 16 school shall submit an annual report to the state board or the 17 university of northern Iowa to assist the state board or the 18 university of northern Iowa in evaluating the charter school’s 19 performance and compliance with the performance framework. 20 6. Annually, by June 30, the state board or the university 21 of northern Iowa, as applicable, shall issue a charter school 22 performance report and charter school contract renewal 23 application guidance to each charter school whose charter 24 school contract will expire during the following school budget 25 year. The performance report shall summarize the charter 26 school’s performance record to date based on the data required 27 by the charter school contract and by this chapter subchapter 28 and shall identify concerns that may jeopardize renewal of the 29 charter school contract if not remedied. The charter school 30 shall have sixty days to respond to the performance report and 31 submit any corrections or clarifications for the report. 32 8. No later than October 1, the governing board of a charter 33 school seeking renewal shall submit a renewal application to 34 the state board or the university of northern Iowa pursuant to 35 -14- HF 2754.4036 (1) 91 jda/jh 14/ 53
the renewal application guidance. A renewal or denial shall be 1 approved by resolution of the state board , or by the university 2 of northern Iowa, within sixty days following the filing of the 3 renewal application. 4 12. A decision to revoke or to not renew a charter school 5 contract shall be by resolution of the state board , or by 6 the university of northern Iowa, and shall clearly state the 7 reasons for the revocation or nonrenewal. 8 13. If a charter school has been evaluated and graded to 9 be in the exceptional category, or the highest rated category 10 under a succeeding evaluation system, under the evaluation and 11 grading required under section 256E.9, subsection 5 , for the 12 immediately preceding two school years, and the charter school 13 is in compliance with the current charter school contract and 14 all provisions of this chapter subchapter , the charter school’s 15 application renewal under subsection 8 shall be renewed 16 for an additional period of time equal to the length of the 17 original charter school contract or the most recent renewal 18 of the contract, whichever is longer, unless the state board 19 or the university of northern Iowa provides written notice to 20 the charter school of the state board’s or the university of 21 northern Iowa’s rejection of the expedited renewal within sixty 22 days of the filing of the application. The state board or 23 the university of northern Iowa shall not reject an expedited 24 renewal application unless the state board or the university of 25 northern Iowa finds exceptional circumstances for the rejection 26 or seeks material changes to the charter school contract. 27 Sec. 28. Section 256E.10, subsection 9, unnumbered 28 paragraph 1, Code 2026, is amended to read as follows: 29 Unless eligible for expedited renewal under subsection 13 , 30 when reviewing a charter school contract renewal application, 31 the state board or the university of northern Iowa shall do all 32 of the following: 33 Sec. 29. Section 256E.10, subsection 10, unnumbered 34 paragraph 1, Code 2026, is amended to read as follows: 35 -15- HF 2754.4036 (1) 91 jda/jh 15/ 53
A charter school contract may be revoked at any time or not 1 renewed if the state board or the university of northern Iowa 2 determines that the charter school did any of the following: 3 Sec. 30. Section 256E.10, subsection 10, paragraph a, Code 4 2026, is amended to read as follows: 5 a. Committed a material violation of any of the terms, 6 conditions, standards, or procedures required under the charter 7 school contract or this chapter subchapter . 8 Sec. 31. Section 256E.10, subsection 11, unnumbered 9 paragraph 1, Code 2026, is amended to read as follows: 10 The state board , in consultation with the university of 11 northern Iowa, shall develop charter school contract revocation 12 and nonrenewal standards and procedures that do all of the 13 following: 14 Sec. 32. Section 256E.11, subsection 1, Code 2026, is 15 amended to read as follows: 16 1. Prior to any charter school closure decision, the state 17 board , in consultation with the university of northern Iowa, 18 shall develop a charter school closure protocol to ensure 19 timely notice to parents and guardians, provide for the orderly 20 transition of students and student records to new schools, and 21 to provide proper disposition of school funds, property, and 22 assets in accordance with the requirements of this chapter 23 subchapter . The protocol shall specify required actions and 24 timelines and identify responsible parties for each such 25 action. 26 Sec. 33. Section 256E.12, Code 2026, is amended to read as 27 follows: 28 256E.12 Reports. 29 1. Each charter school shall prepare and file an annual 30 report with the department. The department , in consultation 31 with the university of northern Iowa, shall prescribe by rule 32 the required contents of the report, but each such report shall 33 include information regarding student achievement, including 34 annual academic growth and proficiency, graduation rates, 35 -16- HF 2754.4036 (1) 91 jda/jh 16/ 53
and financial performance and sustainability. The reports 1 are public records and the examination, publication, and 2 dissemination of the reports are governed by the provisions of 3 chapter 22 . 4 2. The state board , in consultation with the university of 5 northern Iowa, shall prepare and file with the general assembly 6 by December 1, annually, a comprehensive report with findings 7 and recommendations relating to the charter school program in 8 the state and whether the charter school program under this 9 chapter subchapter is meeting the goals and purposes of the 10 program. The report also shall contain, for each charter 11 school, a copy of the charter school’s mission statement, 12 attendance statistics and dropout rate, aggregate assessment 13 test scores, projections of financial stability, and the number 14 and qualifications of teachers and administrators. 15 Sec. 34. Section 256F.1, subsection 1, Code 2026, is amended 16 to read as follows: 17 1. Charter schools and innovation zone schools shall be part 18 of the state’s program of public education. 19 Sec. 35. Section 256F.1, subsection 3, unnumbered paragraph 20 1, Code 2026, is amended to read as follows: 21 The purpose of a charter school or an innovation zone school 22 established pursuant to this chapter subchapter shall be to 23 accomplish the following: 24 Sec. 36. Section 256F.1, subsection 4, Code 2026, is amended 25 by striking the subsection. 26 Sec. 37. Section 256F.2, unnumbered paragraph 1, Code 2026, 27 is amended to read as follows: 28 As used in this chapter subchapter , unless the context 29 otherwise requires: 30 Sec. 38. Section 256F.2, subsections 1 and 3, Code 2026, are 31 amended to read as follows: 32 1. “Advisory council” means a council appointed by the 33 school board of directors of a charter school or an innovation 34 zone consortium pursuant to section 256F.5, subsection 4 . 35 -17- HF 2754.4036 (1) 91 jda/jh 17/ 53
3. “Charter school” means a charter school established in 1 accordance with this chapter subchapter . 2 Sec. 39. Section 256F.2, subsections 5 and 6, Code 2026, are 3 amended by striking the subsections. 4 Sec. 40. Section 256F.3, Code 2026, is amended to read as 5 follows: 6 256F.3 Application Monitoring —— no new approvals —— adoption 7 of rules . 8 1. The department shall monitor the effectiveness of 9 charter schools and innovation zone schools and shall implement 10 the applicable provisions of this chapter subchapter . 11 2. a. To receive approval to establish a charter school 12 in accordance with this chapter , the principal, teachers, 13 or parents or guardians of students at an existing public 14 school shall submit an application to the school board to 15 convert an existing attendance center to a charter school. 16 An attendance center shall not enter into a charter school 17 contract with a school district under this chapter unless the 18 attendance center is located within the school district. The 19 application shall demonstrate the support of at least fifty 20 percent of the teachers employed at the school on the date of 21 the submission of the application and fifty percent of the 22 parents or guardians voting whose children are enrolled at the 23 school, provided that a majority of the parents or guardians 24 eligible to vote participate in the ballot process, according 25 to procedures established by rules of the state board. 26 b. To receive approval to establish an innovation zone 27 school in accordance with this chapter , an innovation zone 28 consortium shall submit an application to the state board 29 which demonstrates the support of at least fifty percent of 30 the teachers employed at each proposed innovation zone school 31 on the date of the submission of the application and fifty 32 percent of the parents or guardians voting whose children are 33 enrolled at each proposed innovation zone school, provided 34 that a majority of the parents or guardians eligible to vote 35 -18- HF 2754.4036 (1) 91 jda/jh 18/ 53
participate in the ballot process, according to procedures 1 established by rules of the state board. 2 c. A parent or guardian voting in accordance with this 3 subsection must be a resident of this state. 4 3. A school board shall receive and review all applications 5 for converting an existing building or creating a new building 6 for a charter school. Applications received on or before 7 October 1 of a calendar year shall be considered for charter 8 schools to be established at the beginning of the school 9 district’s next school year or at a time agreed to by the 10 applicant and the school board. However, a school board may 11 receive and consider applications after October 1 at its 12 discretion. 13 4. A school board shall by a majority vote approve or 14 deny an application relating to a charter school no later 15 than sixty calendar days after the application is received. 16 An application approved by a school board and subsequently 17 approved by the state board pursuant to subsection 6 shall 18 constitute, at a minimum, an agreement between the school board 19 and the charter school for the operation of the charter school. 20 A school board that denies an application for a conversion 21 to a charter school shall provide notice of denial to the 22 applicant in writing within thirty days after board action. 23 The notice shall specify the exact reasons for denial and 24 provide documentation supporting those reasons. 25 5. An applicant may appeal school board denial of the 26 applicant’s charter school application to the state board 27 in accordance with the procedures set forth in chapter 290 . 28 The state board shall affirm, modify, or reverse the school 29 board’s decision on the basis of the information provided in 30 the application indicating the ability and willingness of the 31 proposed charter school to meet the requirements of section 32 256F.1, subsection 3 , and section 256F.4 . 33 6. Upon approval of an application for the proposed 34 establishment of a charter school, the school board shall 35 -19- HF 2754.4036 (1) 91 jda/jh 19/ 53
submit an application for approval to establish the charter 1 school to the state board in accordance with section 256F.5 . 2 7. An application submitted to the state board pursuant to 3 subsection 2 , paragraph “b” , or subsection 6 shall set forth the 4 manner in which the charter school or innovation zone school 5 will provide special instruction, in accordance with section 6 280.4 , to students who are English learners. The application 7 shall set forth the manner in which the charter school or 8 innovation zone school will comply with federal and state laws 9 and regulations relating to the federal National School Lunch 10 Act and the federal Child Nutrition Act of 1966 , 42 U.S.C. 11 §1751 1785 , and chapter 283A . The state board shall approve 12 only those applications that meet the requirements specified in 13 section 256F.1, subsection 3 , and sections 256F.4 and 256F.5 . 14 The state board may deny an application if the state board 15 deems that approval of the application is not in the best 16 interest of the affected students. 17 8. The state board shall approve not more than ten 18 innovation zone consortium applications. 19 9. 2. The state board shall not approve a new charter 20 school under this chapter subchapter on or after July 1, 2021. 21 10. 3. The state board shall adopt rules in accordance with 22 chapter 17A for the implementation of this chapter subchapter . 23 If federal rules or regulations relating to the distribution 24 or utilization of federal funds allocated to the department 25 pursuant to this section are adopted that are inconsistent 26 with the provisions of this chapter subchapter , the state 27 board shall adopt rules to comply with the requirements of the 28 federal rules or regulations. The state board shall identify 29 inconsistencies between federal and state rules and regulations 30 as provided in this subsection and shall submit recommendations 31 for legislative action to the chairpersons and ranking members 32 of the senate and house standing committees on education at the 33 next meeting of the general assembly. 34 Sec. 41. Section 256F.4, subsection 1, Code 2026, is amended 35 -20- HF 2754.4036 (1) 91 jda/jh 20/ 53
by striking the subsection. 1 Sec. 42. Section 256F.4, subsection 2, unnumbered paragraph 2 1, Code 2026, is amended to read as follows: 3 Although a charter school or innovation zone school may 4 elect to comply with one or more provisions of statute or 5 administrative rule, a charter school or innovation zone school 6 is exempt from all statutes and rules applicable to a school, 7 a school board, or a school district, except that the charter 8 school or innovation zone school shall do all of the following: 9 Sec. 43. Section 256F.4, subsection 2, paragraphs a and h, 10 Code 2026, are amended to read as follows: 11 a. Meet all applicable federal, state, and local health and 12 safety requirements and laws prohibiting discrimination on the 13 basis of race, creed, color, sex, sexual orientation, national 14 origin, religion, ancestry, or disability. A charter school 15 or innovation zone school located within the boundaries of a 16 school district subject to court-ordered desegregation at the 17 time the charter school or innovation zone school application 18 is approved shall be subject to the desegregation order unless 19 otherwise specifically provided for in the desegregation order. 20 h. Be subject to and comply with chapter 284 relating to 21 the student achievement and teacher quality program. A charter 22 school or innovation zone school that complies with chapter 23 284 shall receive state moneys or be eligible to receive state 24 moneys calculated as provided in section 257.10, subsections 25 9 and 10 , and section 257.37A as if it did not operate under a 26 charter school or innovation zone school contract. 27 Sec. 44. Section 256F.4, subsection 2, Code 2026, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . v. Be subject to and comply with the 30 requirements of section 256E.9 related to the incorporation 31 into the charter school contract of a performance framework 32 that is used by the state board to evaluate the charter school 33 in the same manner as a charter school established under 34 subchapter I. 35 -21- HF 2754.4036 (1) 91 jda/jh 21/ 53
Sec. 45. Section 256F.4, subsections 3, 4, 5, 6, 7, and 8, 1 Code 2026, are amended to read as follows: 2 3. A charter school or innovation zone school shall not 3 discriminate in its student admissions policies or practices 4 on the basis of intellectual or athletic ability, measures 5 of achievement or aptitude, or status as a person with a 6 disability. However, a charter school or innovation zone 7 school may limit admission to students who are within a 8 particular range of ages or grade levels or on any other 9 basis that would be legal if initiated by a school district. 10 Enrollment priority shall be given to the siblings of students 11 enrolled in a charter school or innovation zone school . 12 4. A charter school or innovation zone school shall 13 enroll an eligible resident student who submits a timely 14 application unless the number of applications exceeds the 15 capacity of a program, class, grade level, or building. In 16 this case, students must be accepted by lot. A charter school 17 or innovation zone school may enroll an eligible nonresident 18 student who submits a timely application in accordance with 19 the student admission policy established pursuant to section 20 256F.5, subsection 1 . If the charter school or innovation zone 21 school enrolls an eligible nonresident student, the charter 22 school or innovation zone school shall notify the school 23 district of residence and the sending district not later than 24 March 1 of the preceding school year. Transportation for the 25 student shall be in accordance with section 282.18, subsection 26 10 . The sending district shall make payments to the charter 27 school or innovation zone consortium in the manner required 28 under section 282.18, subsection 7 . If the nonresident pupil 29 is also an eligible pupil under section 261E.6 , the innovation 30 zone consortium shall pay the tuition reimbursement amount to 31 an eligible postsecondary institution as provided in section 32 261E.7 . 33 5. A charter school or innovation zone school shall provide 34 instruction for at least the number of days or hours required 35 -22- HF 2754.4036 (1) 91 jda/jh 22/ 53
by section 279.10, subsection 1 . 1 6. Notwithstanding subsection 2 , a charter school or 2 innovation zone school shall meet the requirements of section 3 256.7, subsection 21 . 4 7. a. A charter school shall be considered a part of the 5 school district in which it is located for purposes of state 6 school foundation aid pursuant to chapter 257 . 7 b. Students enrolled in an innovation zone school shall 8 be counted, for state school foundation aid purposes, in the 9 student’s district of residence. 10 8. A charter school or innovation zone consortium may enter 11 into contracts in accordance with chapter 26 . 12 Sec. 46. Section 256F.5, unnumbered paragraph 1, Code 2026, 13 is amended to read as follows: 14 An application to the state board for the approval of a 15 charter school or innovation zone school shall include but 16 shall not be limited to a description of the following: 17 Sec. 47. Section 256F.5, subsections 1, 2, 4, 6, 7, 10, 18 12, 13, 14, 15, 16, and 17, Code 2026, are amended to read as 19 follows: 20 1. The method for admission to the charter school or 21 innovation zone school . 22 2. The mission, purpose, innovation, and specialized focus 23 of the charter school or innovation zone school . 24 4. The method for appointing or forming an advisory 25 council for the charter school or innovation zone school . 26 The membership of an advisory council appointed or formed in 27 accordance with this chapter subchapter shall not include more 28 than one member of a participating school board. 29 6. The charter school or innovation zone school governance 30 and bylaws. 31 7. The financial plan for the operation of the charter 32 school or innovation zone school including, at a minimum, 33 a listing of the support services the school district or 34 innovation zone consortium will provide, and the charter 35 -23- HF 2754.4036 (1) 91 jda/jh 23/ 53
school or innovation zone school’s revenues, budgets, and 1 expenditures. 2 10. The organization of the charter school or innovation 3 zone school in terms of ages of students or grades to be taught 4 along with an estimate of the total enrollment of the charter 5 school or innovation zone school . 6 12. A statement indicating how the charter school or 7 innovation zone school will meet the requirements of section 8 256F.1, as applicable; section 256F.4, subsection 2 , paragraph 9 “a” ; and section 256F.4, subsection 3 . 10 13. Assurance of the assumption of liability by the charter 11 school or the innovation zone consortium for the innovation 12 zone school . 13 14. The types and amounts of insurance coverage to be 14 obtained by the charter school or innovation zone consortium 15 for the innovation zone school . 16 15. A plan of operation to be implemented if the charter 17 school or innovation zone consortium revokes or fails to renew 18 its contract. 19 16. The means, costs, and plan for providing transportation 20 for students enrolled in the charter school or innovation zone 21 school . 22 17. The specific statutes, administrative rules, and school 23 board policies with which the charter school or innovation zone 24 school does not intend to comply. 25 Sec. 48. Section 256F.6, subsections 1 and 3, Code 2026, are 26 amended to read as follows: 27 1. a. An approved charter school or innovation zone school 28 application shall constitute an agreement, the terms of which 29 shall, at a minimum, be the terms of a four-year five-year 30 enforceable, renewable contract between a school board , or the 31 boards participating in an innovation zone consortium, and the 32 state board. The contract shall include an operating agreement 33 for the operation of the charter school or innovation zone 34 school. The terms of the contract may be revised at any time 35 -24- HF 2754.4036 (1) 91 jda/jh 24/ 53
with the approval of both the state board and the school board 1 or the boards participating in the innovation zone consortium , 2 whether or not the stated provisions of the contract are being 3 fulfilled. The contract must include all of the following: 4 (1) An operating agreement for the operation of the charter 5 school. 6 (2) A performance framework as required under section 7 256F.4, subsection 2, paragraph “v” . 8 b. A contract may be renewed by agreement of the school 9 board or the boards participating in an innovation zone 10 consortium, as applicable, and the state board. 11 c. The charter school or innovation zone consortium shall 12 provide parents and guardians of students enrolled in the 13 charter school or innovation zone school with a copy of the 14 charter school or innovation zone school application approved 15 pursuant to section 256F.5 . 16 3. The state board of education shall provide by rule for 17 the ongoing review of each party’s compliance with a contract 18 entered into in accordance with this chapter subchapter . 19 Sec. 49. Section 256F.7, Code 2026, is amended to read as 20 follows: 21 256F.7 Employment and related matters. 22 1. A charter school or the boards participating in an 23 innovation zone consortium shall employ or contract with 24 necessary teachers and administrators, as defined in section 25 256.145 , who hold a valid license with an endorsement for the 26 type of service for which the teacher or administrator is 27 employed. 28 2. The school board or innovation zone consortium, as 29 specified in the application , in consultation with the advisory 30 council, shall decide matters related to the operation of the 31 charter school or innovation zone school , including budgeting, 32 curriculum, and operating procedures. 33 3. a. Employees of a charter school shall be considered 34 employees of the school district. 35 -25- HF 2754.4036 (1) 91 jda/jh 25/ 53
b. Employees of an innovation zone school shall be 1 considered employees of a board participating in the innovation 2 zone consortium. 3 Sec. 50. Section 256F.8, subsections 1, 2, 3, 4, and 6, Code 4 2026, are amended to read as follows: 5 1. A contract for the establishment of a charter school or 6 innovation zone school may be revoked by the state board , or 7 the school board that established the charter school , or the 8 innovation zone consortium that established the innovation zone 9 school if the appropriate board or consortium determines that 10 one or more of the following occurred: 11 a. Failure of the charter school or innovation zone school 12 to abide by and meet the provisions set forth in the contract, 13 including educational goals. 14 b. Failure of the charter school or innovation zone school 15 to comply with all applicable law. 16 c. Failure of the charter school or innovation zone school 17 to meet generally accepted public sector accounting principles. 18 d. The existence of one or more other grounds for revocation 19 as specified in the contract. 20 e. Assessment of student progress, which is administered 21 in accordance with state and locally determined indicators 22 established pursuant to rules adopted by the state board, 23 does not show improvement in student progress over that 24 which existed in the same student population prior to the 25 establishment of the charter school or the innovation zone 26 school . 27 2. The decision by a school board or an innovation zone 28 consortium to revoke or to fail to take action to renew a 29 charter school or innovation zone school contract is subject to 30 appeal under procedures set forth in chapter 290 . 31 3. A school board or a board participating in an innovation 32 zone consortium that is considering revocation or nonrenewal 33 of a charter school or innovation zone school contract shall 34 notify the advisory council, the parents or guardians of the 35 -26- HF 2754.4036 (1) 91 jda/jh 26/ 53
students enrolled in the charter school or innovation zone 1 school , and the teachers and administrators employed by the 2 charter school or innovation zone school , sixty days prior to 3 revoking or the date by which the contract must be renewed, but 4 not later than the last day of classes in the school year. 5 4. If the state board determines that a charter school or 6 innovation zone school is in substantial violation of the terms 7 of the contract, the state board shall notify the school board 8 or innovation zone consortium and the advisory council of its 9 intention to revoke the contract at least sixty days prior to 10 revoking a contract and the school board or the school boards 11 participating in the innovation zone consortium shall assume 12 oversight authority, operational authority, or both oversight 13 and operational authority. The notice shall state the 14 grounds for the proposed action in writing and in reasonable 15 detail. The school board or innovation zone consortium may 16 request in writing an informal hearing before the state board 17 within fourteen days of receiving notice of revocation of 18 the contract. Upon receiving a timely written request for a 19 hearing, the state board shall give reasonable notice to the 20 school board or innovation zone consortium of the hearing 21 date. The state board shall conduct an informal hearing before 22 taking final action. Final action to revoke a contract shall 23 be taken in a manner least disruptive to students enrolled in 24 the charter school or innovation zone school . The state board 25 shall take final action to revoke or approve continuation of 26 a contract by the last day of classes in the school year. If 27 the final action to revoke a contract under this section occurs 28 prior to the last day of classes in the school year, a charter 29 school or innovation zone school student may enroll in the 30 resident district. 31 6. A school board revoking a contract or a school board , 32 innovation zone consortium, or advisory council that fails to 33 renew a contract under this chapter subchapter is not liable 34 for that action to the charter school or innovation zone 35 -27- HF 2754.4036 (1) 91 jda/jh 27/ 53
school , a student enrolled in the charter school or innovation 1 zone school or the student’s parent or guardian, or any other 2 person. 3 Sec. 51. Section 256F.9, Code 2026, is amended to read as 4 follows: 5 256F.9 Procedures after revocation —— student enrollment. 6 If a charter school or innovation zone school contract 7 is revoked in accordance with this chapter subchapter , a 8 nonresident student who attended the school, and any siblings 9 of the student may submit an application to another school 10 district according to section 282.18 . Applications and notices 11 required by section 282.18 shall be processed and provided in a 12 prompt manner. 13 Sec. 52. Section 256F.10, Code 2026, is amended to read as 14 follows: 15 256F.10 Reports. 16 1. A charter school or innovation zone school shall 17 report at least annually to the school board or innovation 18 zone consortium , advisory council, and the state board the 19 information required by the school board or innovation zone 20 consortium , advisory council, or the state board. The reports 21 are public records subject to chapter 22 . 22 2. Not later than December 1 annually, the state board shall 23 submit a comprehensive report with findings and recommendations 24 to the general assembly. The report shall evaluate the state’s 25 charter school and innovation zone school programs generally, 26 including but not limited to an evaluation of whether the 27 charter schools and innovation zone schools are fulfilling the 28 purposes set forth in section 256F.4, subsection 2 . The report 29 also shall contain, for each charter school or innovation 30 zone school , a copy of the charter school or innovation 31 zone school’s mission statement, attendance statistics and 32 dropout rate, aggregate assessment test scores, projections of 33 financial stability, the number and qualifications of teachers 34 and administrators, and number of and comments on supervisory 35 -28- HF 2754.4036 (1) 91 jda/jh 28/ 53
visits by the department of education. 1 Sec. 53. Section 256F.12, Code 2026, is amended to read as 2 follows: 3 256F.12 Operation of existing charter schools. 4 Charter schools established under this chapter subchapter 5 prior to July 1, 2021, shall continue to operate under and be 6 subject to the requirements of this chapter subchapter and 7 shall not be subject to chapter 256E subchapter I . 8 Sec. 54. Section 257.6, subsection 1, paragraph a, 9 subparagraph (9), Code 2026, is amended to read as follows: 10 (9) Resident pupils enrolled in a charter school under 11 chapter 256E or 256F . 12 Sec. 55. Section 280.36, subsection 3, Code 2026, is amended 13 to read as follows: 14 3. The board of directors of a school district or the 15 authorities in charge of an accredited nonpublic school 16 may enter into an agreement with another school district, 17 accredited nonpublic school, or charter school , or innovation 18 zone school to create a multidisciplinary school safety 19 assessment team that shall coordinate resources among the 20 schools and assess and intervene when a student enrolled in 21 either school exhibits behavior that may pose a threat to 22 the safety of either school, employees of either school, or 23 students enrolled in either school. 24 Sec. 56. Section 282.9, subsection 1, Code 2026, is amended 25 to read as follows: 26 1. Notwithstanding sections 256E.7 , 256F.4 256E.23 , 27 275.55A , and 282.18 , or any other provision to the contrary, 28 prior to knowingly enrolling an individual who is required 29 to register as a sex offender under chapter 692A , but who is 30 otherwise eligible to enroll in a public school, the board of 31 directors of a school district shall determine the educational 32 placement of the individual. Upon receipt of notice that a 33 student who is enrolled in the district is required to register 34 as a sex offender under chapter 692A , the board shall determine 35 -29- HF 2754.4036 (1) 91 jda/jh 29/ 53
the educational placement of the student. The tentative agenda 1 for the meeting of the board of directors at which the board 2 will consider such enrollment or educational placement shall 3 specifically state that the board is considering the enrollment 4 or educational placement of an individual who is required 5 to register as a sex offender under chapter 692A . If the 6 individual is denied enrollment in a school district under this 7 section , the school district of residence shall provide the 8 individual with educational services in an alternative setting. 9 Sec. 57. Section 282.18, subsection 11, paragraph a, 10 subparagraph (8), Code 2026, is amended to read as follows: 11 (8) If the pupil participates in open enrollment because 12 of circumstances that meet the definition of good cause. For 13 purposes of this section , “good cause” means a change in a 14 child’s residence due to a change in family residence, a change 15 in a child’s residence from the residence of one parent or 16 guardian to the residence of a different parent or guardian, a 17 change in the state in which the family residence is located, 18 a change in a child’s parents’ marital status, a guardianship 19 or custody proceeding, placement in foster care, adoption, 20 participation in a foreign exchange program, initial placement 21 of a prekindergarten student in a special education program 22 requiring specially designed instruction, or participation in 23 a substance use disorder or mental health treatment program, 24 a change in the status of a child’s resident district such 25 as removal of accreditation by the state board, surrender of 26 accreditation, or permanent closure of a nonpublic school, 27 revocation of a charter school contract as provided in section 28 256E.10 or 256F.8 256E.27 , the failure of negotiations for a 29 whole grade sharing, reorganization, dissolution agreement, or 30 the rejection of a current whole grade sharing agreement, or 31 reorganization plan. 32 Sec. 58. Section 297.24, subsection 3, paragraph d, Code 33 2026, is amended by striking the paragraph. 34 Sec. 59. CODE EDITOR DIRECTIVE —— TRANSFERS —— NEW 35 -30- HF 2754.4036 (1) 91 jda/jh 30/ 53
SUBCHAPTERS. 1 1. The Code editor is directed to make the following 2 transfers: 3 a. Section 256F.1 to section 256E.20. 4 b. Section 256F.2 to section 256E.21. 5 c. Section 256F.3 to section 256E.22. 6 d. Section 256F.4 to section 256E.23. 7 e. Section 256F.5 to section 256E.24. 8 f. Section 256F.6 to section 256E.25. 9 g. Section 256F.7 to section 256E.26. 10 h. Section 256F.8 to section 256E.27. 11 i. Section 256F.9 to section 256E.28. 12 j. Section 256F.10 to section 256E.29. 13 k. Section 256F.12 to section 256E.30. 14 2. The Code editor is directed to create two new subchapters 15 in chapter 256E as follows: 16 a. Subchapter I shall be entitled “Charter Schools” and 17 include sections 256E.1 through 256E.13. 18 b. Subchapter II shall be entitled “Legacy Charter Schools” 19 and include sections 256E.20 through 256E.30. 20 3. The Code editor is directed to make changes in any Code 21 sections or other noncodified enactments amended or enacted 22 by any other Act to correspond with the changes made in this 23 Act if there appears to be no doubt as to the proper method of 24 making the changes and the changes would not be contrary to or 25 inconsistent with the purposes of this Act or any other Act. 26 Sec. 60. APPLICABILITY. The following applies to charter 27 school contracts that are executed or renewed pursuant to 28 chapter 256E on or after the effective date of this division 29 of this Act: 30 The section of this division of this Act amending section 31 256E.6. 32 Sec. 61. APPLICABILITY. The following apply to charter 33 school contracts entered into under section 256F.6 between a 34 school board and the state board of education that are renewed 35 -31- HF 2754.4036 (1) 91 jda/jh 31/ 53
on or after the effective date of this division of this Act: 1 1. The section of this division of this Act amending 2 section 256F.4, subsection 2, by requiring charter schools to 3 incorporate a performance framework into the charter school 4 contract. 5 2. The section of this division of this Act amending section 6 256F.6, subsection 1, paragraph “a”. 7 DIVISION II 8 FUNDING AND AREA EDUCATION AGENCY SERVICES 9 Sec. 62. Section 256E.8, subsection 2, paragraph a, Code 10 2026, is amended to read as follows: 11 a. The charter school in which the student is enrolled 12 shall receive under paragraph “c” an amount equal to the sum 13 of the regular program state cost per pupil for the budget 14 year plus the teacher leadership supplement state cost per 15 pupil, the teacher salary supplement state cost per pupil, the 16 professional development supplement state cost per pupil, and 17 the early intervention supplement state cost per pupil for 18 the budget year as provided in section 257.9 plus any moneys 19 that would be due to the school district of residence for the 20 student as a result of the non-English speaking weighting under 21 section 280.4, subsection 3 , for the budget year multiplied by 22 the state cost per pupil for the budget year. If a student 23 is an eligible pupil under section 261E.6 , the charter school 24 shall pay the tuition reimbursement amount to an eligible 25 postsecondary institution as provided in section 261E.7 . 26 Sec. 63. Section 257.35, Code 2026, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 21A. The director of the department of 29 management may deduct the following from the state aid due to 30 each school district pursuant to this chapter and shall pay 31 the amounts to the respective area education agencies on a 32 monthly basis from September 15 through June 15 during each 33 school year for purposes of providing services to students 34 enrolled in charter schools established pursuant to chapter 35 -32- HF 2754.4036 (1) 91 jda/jh 32/ 53
256E, subchapter I, within the boundaries of the area education 1 agency: 2 a. The amount calculated for media services for the school 3 district that is attributable to the number of students 4 enrolled in charter schools established pursuant to chapter 5 256E, subchapter I, within the school district who are provided 6 with media services by an area education agency. 7 b. The amount calculated for educational services for the 8 school district that is attributable to the number of students 9 enrolled in charter schools established pursuant to chapter 10 256E, subchapter I, within the school district who are provided 11 with educational services by an area education agency. 12 Sec. 64. Section 273.2, subsection 3, paragraph a, Code 13 2026, is amended to read as follows: 14 a. The area education agency shall furnish educational 15 services and programs as provided in section 273.1 , this 16 section , sections 273.3 through 273.8 , and chapter 256B to 17 pupils enrolled in public or nonpublic schools which are on 18 the list of accredited schools pursuant to section 256.11 , and 19 to pupils enrolled in charter schools established pursuant 20 to chapter 256E, subchapter I, which request to receive such 21 services. The programs and services provided shall be at least 22 commensurate with programs and services existing on July 1, 23 1974. The programs and services provided to pupils enrolled 24 in nonpublic schools shall be comparable to programs and 25 services provided to pupils enrolled in public schools within 26 constitutional guidelines. 27 Sec. 65. Section 273.2, subsection 4, Code 2026, is amended 28 to read as follows: 29 4. The area education agency shall provide for special 30 education services and media services for school districts 31 and shall encourage and assist school districts to establish 32 programs for gifted and talented children. The area education 33 agency shall provide for media services for charter schools 34 established pursuant to chapter 256E, subchapter I. The area 35 -33- HF 2754.4036 (1) 91 jda/jh 33/ 53
education agency shall assist in facilitating interlibrary 1 loans of materials between school districts and other 2 libraries. 3 Sec. 66. APPLICABILITY. The following apply to school 4 budget years beginning on or after July 1, 2026: 5 1. The section of this division of this Act amending section 6 256E.8, subsection 2, paragraph “a”. 7 2. The section of this division of this Act amending section 8 257.35. 9 DIVISION III 10 EXTRACURRICULAR ACTIVITIES 11 Sec. 67. Section 280.13D, Code 2026, is amended to read as 12 follows: 13 280.13D Participation in extracurricular interscholastic 14 athletic contests or competitions and extracurricular activities 15 provided by public schools. 16 1. a. The board of directors of a school district shall 17 allow a student who resides within the school district, and 18 who is enrolled in a nonpublic school or a charter school 19 established pursuant to chapter 256E, subchapter I , to 20 participate in any extracurricular interscholastic athletic 21 contest or competition , and any extracurricular activity, 22 including theater, show choir, and band, that is provided by 23 the school district pursuant to the terms of an agreement 24 between the board of directors of the school district and the 25 authorities in charge of the nonpublic school or the governing 26 board of the charter school, as applicable, that provides 27 for the eligibility of the student, if all of the following 28 criteria are satisfied: 29 (1) The extracurricular interscholastic athletic contest or 30 competition or extracurricular activity has not been provided 31 by the nonpublic school or the charter school during the two 32 immediately preceding school years. 33 (2) The nonpublic school or charter school has not entered 34 into an agreement under section 280.13A with another school 35 -34- HF 2754.4036 (1) 91 jda/jh 34/ 53
district, nonpublic school, or charter school that provides 1 for the eligibility of students enrolled in the nonpublic 2 school or charter school to participate in the extracurricular 3 interscholastic athletic contest or competition or any 4 extracurricular activity that is being provided by that school 5 district, nonpublic school, or charter school. 6 b. The board of directors of a school district shall allow 7 a student who resides within a contiguous school district, 8 and who is enrolled in a nonpublic school or a charter school 9 established pursuant to chapter 256E, subchapter I , to 10 participate in any extracurricular interscholastic athletic 11 contest or competition and any extracurricular activity that 12 is provided by the school district pursuant to the terms of an 13 agreement between the board of directors of the school district 14 and the authorities in charge of the nonpublic school or the 15 governing board of the charter school, as applicable, that 16 provides for the eligibility of the student, if all of the 17 following criteria are satisfied: 18 (1) The extracurricular interscholastic athletic contest or 19 competition or extracurricular activity has not been provided 20 by the nonpublic school or charter school, or by the student’s 21 school district of residence , during the two immediately 22 preceding school years. 23 (2) The nonpublic school or charter school has not 24 entered into an agreement under section 280.13A with another 25 school district, nonpublic school, or charter school that 26 provides for the eligibility of students enrolled in the 27 nonpublic school or charter school to participate in the 28 extracurricular interscholastic athletic contest or competition 29 or extracurricular activity that is being provided by that 30 school district, nonpublic school, or charter school. 31 c. If the board of directors of a school district has 32 established a fee for the cost of a student’s participation 33 in an extracurricular interscholastic athletic contest or 34 competition or extracurricular activity , a student who is 35 -35- HF 2754.4036 (1) 91 jda/jh 35/ 53
enrolled in a nonpublic school or a charter school established 1 pursuant to chapter 256E, subchapter I, and is participating 2 in a contest or competition an extracurricular interscholastic 3 contest or competition or extracurricular activity at a public 4 school pursuant to paragraph “a” or “b” , or the student’s parent 5 or guardian, shall be responsible for the payment of such fee. 6 The amount of such fee shall not exceed the amount of the fee 7 the board of directors of the school district has established 8 for students who are enrolled in the school district. 9 2. A student who is enrolled in a nonpublic school or 10 a charter school established pursuant to chapter 256E, 11 subchapter I, and is participating in a contest or competition 12 an extracurricular interscholastic contest or competition 13 or extracurricular activity at a public school pursuant to 14 subsection 1 , paragraph “a” or “b” , shall participate under 15 the same conditions as a student who is enrolled in the school 16 district, including meeting the school district’s student code 17 of conduct requirements. 18 3. A student who participates in an extracurricular 19 interscholastic athletic contest or competition or 20 extracurricular activity pursuant to this section shall be 21 deemed to satisfy the residence requirements for purposes of 22 section 256.46 . 23 DIVISION IV 24 DRIVER EDUCATION 25 Sec. 68. Section 321.178, subsection 1, paragraph c, Code 26 2026, is amended to read as follows: 27 c. (1) (a) Every public school district in Iowa shall 28 offer or make available to all students residing in the school 29 district, or Iowa students attending a nonpublic school or 30 receiving competent private instruction or independent private 31 instruction as defined in section 299A.1 , in the district, an 32 approved course in driver education. 33 (b) (i) Every public school district in Iowa shall offer 34 or make available to all Iowa students residing in the school 35 -36- HF 2754.4036 (1) 91 jda/jh 36/ 53
district who attend a charter school established pursuant 1 to chapter 256E, subchapter I, an approved course in driver 2 education pursuant to policies established by the public school 3 district. The charter school shall be responsible for the 4 payment of all of the school district’s costs associated with 5 providing the approved course in driver education to such 6 students. 7 (ii) Every charter school established pursuant to chapter 8 256E, subchapter I, shall offer or make available to all 9 students attending the charter school an approved course in 10 driver education. 11 (c) The receiving district shall be the school district 12 responsible for making driver education available to a student 13 participating in open enrollment under section 282.18 . 14 (2) The courses may be offered at sites other than at the 15 public school or charter school , including nonpublic school 16 facilities within the public school districts. An approved 17 course offered during the summer months, on Saturdays, after 18 regular school hours during the regular terms or partly in one 19 term or summer vacation period and partly in the succeeding 20 term or summer vacation period, as the case may be, shall 21 satisfy the requirements of this section to the same extent 22 as an approved course offered during the regular school hours 23 of the school term. A student who successfully completes and 24 obtains certification in an approved course in driver education 25 or an approved course in motorcycle education may, upon proof 26 of such fact, be excused from any field test which the student 27 would otherwise be required to take in demonstrating the 28 student’s ability to operate a motor vehicle. A student shall 29 not be excused from any field test if a parent, guardian, 30 or instructor requests that a test be administered. A final 31 field test prior to a student’s completion of an approved 32 course shall be administered by a person qualified to provide 33 street or highway driving instruction under paragraph “b” , 34 subparagraph (2). 35 -37- HF 2754.4036 (1) 91 jda/jh 37/ 53
DIVISION V 1 IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM 2 Sec. 69. Section 97B.1A, subsection 8, paragraph a, Code 3 2026, is amended by adding the following new subparagraph: 4 NEW SUBPARAGRAPH . (13) Persons employed by a charter 5 school established pursuant to chapter 256E, subchapter I, that 6 satisfies all applicable requirements under federal law for 7 participation in the retirement system. 8 Sec. 70. Section 97B.1A, subsection 9, paragraph a, Code 9 2026, is amended to read as follows: 10 a. “Employer” means the state of Iowa, the counties, 11 municipalities, agencies, public school districts, charter 12 schools established pursuant to chapter 256E, subchapter 13 I, that satisfy all applicable requirements under federal 14 law for participation in the retirement system, all 15 political subdivisions, and all of their departments and 16 instrumentalities, including area agencies on aging, other than 17 those employing persons as specified in subsection 8 , paragraph 18 “b” , subparagraph (7), and joint planning commissions created 19 under chapter 28E or 28I . 20 Sec. 71. Section 256E.11, subsection 2, Code 2026, is 21 amended to read as follows: 22 2. In the event of a charter school closure, the assets of 23 the charter school shall be used first to satisfy outstanding 24 payroll obligations for employees of the school and any 25 liabilities due and owing to the Iowa public employees’ 26 retirement system , then to creditors of the school, then to the 27 public school district in which the charter school operated, 28 if applicable, and then to the state general fund. If the 29 assets of the charter school are insufficient to pay all 30 obligations of the charter school, the prioritization of the 31 distribution of assets shall be consistent with this subsection 32 and otherwise determined by the district court. 33 DIVISION VI 34 CHARTER SCHOOL FACILITIES REVOLVING LOAN PROGRAM 35 -38- HF 2754.4036 (1) 91 jda/jh 38/ 53
Sec. 72. NEW SECTION . 16.163 Charter school facilities 1 revolving loan program fund —— credit enhancement agreements. 2 1. a. A charter school facilities revolving loan program 3 fund is created within the authority to assist charter 4 schools established pursuant to chapter 256E, subchapter I, 5 in acquiring suitable school facilities. The moneys in the 6 charter school facilities revolving loan program fund are 7 appropriated to the authority for use in the development and 8 operation of a charter school facilities revolving loan program 9 to assist charter schools in purchasing, acquiring, developing, 10 reconstructing, remodeling, or replacing school buildings. 11 b. Moneys transferred by the authority for deposit 12 in the charter school facilities revolving loan program 13 fund, moneys appropriated to the charter school facilities 14 revolving loan program, and any other moneys available to 15 and obtained or accepted by the authority for placement in 16 the charter school facilities revolving loan program fund 17 shall be deposited in the fund. Additionally, payment of 18 interest, recaptures of awards, and other repayments to the 19 charter school facilities revolving loan program fund shall 20 be deposited in the fund. Notwithstanding section 12C.7, 21 subsection 2, interest or earnings on moneys in the charter 22 school facilities revolving loan program fund shall be credited 23 to the fund. Notwithstanding section 8.33, moneys that remain 24 unencumbered or unobligated at the end of the fiscal year shall 25 not revert but shall remain available for the same purpose in 26 the succeeding fiscal year. 27 c. The authority shall annually allocate moneys available in 28 the charter school facilities revolving loan program fund to 29 assist charter schools in purchasing, acquiring, developing, 30 reconstructing, remodeling, or replacing school buildings. 31 2. In addition to the charter school facilities revolving 32 loan program authorized pursuant to subsection 1, the authority 33 is authorized to make or enter into a liquidity or credit 34 enhancement agreement with a charter school established 35 -39- HF 2754.4036 (1) 91 jda/jh 39/ 53
pursuant to chapter 256E, subchapter I, to assist the charter 1 school in purchasing, acquiring, developing, reconstructing, 2 remodeling, or replacing school buildings. 3 Sec. 73. CODE EDITOR DIRECTIVE. The Code editor shall 4 designate section 16.163, as enacted in this division of 5 this Act, as a new section within chapter 16, subchapter X, 6 part 6, and may redesignate the preexisting part and correct 7 internal references as necessary, including references to part 8 headnotes. 9 DIVISION VII 10 EDUCATION SAVINGS ACCOUNTS 11 Sec. 74. Section 257.11B, subsections 3 and 4, Code 2026, 12 are amended to read as follows: 13 3. a. (1) On or after January 1, but on or before June 14 30, preceding the school year for which the education savings 15 account payment is requested, the parent or guardian of an 16 eligible pupil may request an education savings account payment 17 by submitting an application to the department of education. 18 (2) On or after October 15, but on or before November 15, 19 preceding the semester for which the education savings account 20 payment is requested, the parent or guardian of an eligible 21 pupil may request an education savings account payment by 22 submitting an application to the department of education. 23 b. Within thirty days following Following submission of an 24 application, the department of education or third-party entity 25 shall notify the parent or guardian of each pupil approved for 26 the following school year or semester and specify the amount of 27 the education savings account payment for the pupil, if known 28 at the time of the notice. As soon as practical following the 29 processing of all applications, the department of education or 30 third-party entity shall determine the number of pupils in each 31 school district approved for the school budget year and provide 32 such information to the department of management. 33 c. Education savings account payments shall only be 34 approved for one school year or one semester, as applicable, 35 -40- HF 2754.4036 (1) 91 jda/jh 40/ 53
and applications must be submitted annually for payments in 1 subsequent school years. 2 4. Each education savings account payment shall be equal to 3 the regular program state cost per pupil for the same school 4 budget year ; provided, however, that an education savings 5 account payment shall be equal to fifty percent of the regular 6 program state cost per pupil for the same school budget year if 7 the pupil’s parent or guardian submitted an application under 8 subsection 3, paragraph “a” , subparagraph (2) . 9 DIVISION VIII 10 INDEPENDENT ACCREDITATION 11 Sec. 75. Section 256.11, subsection 16, Code 2026, is 12 amended by adding the following new paragraphs: 13 NEW PARAGRAPH . d. (1) If an approved independent 14 accrediting agency deaccredits a nonpublic school, the 15 nonpublic school shall not seek accreditation from an 16 independent accrediting agency that is on the approved list 17 pursuant to paragraph “a” for a period of three years beginning 18 on the date the approved independent accrediting agency 19 deaccredited the nonpublic school. 20 (2) If an approved independent accrediting agency 21 deaccredits a nonpublic school, the nonpublic school may 22 immediately seek accreditation under subsection 10. 23 NEW PARAGRAPH . e. (1) This subsection shall not be 24 construed to authorize the state or any political subdivision 25 of the state to exercise authority over any nonpublic school or 26 construed to require a nonpublic school to modify its academic 27 standards for admission or educational program. 28 (2) This section shall not be construed to expand the 29 authority of the state or any political subdivision of the 30 state to impose regulations upon any nonpublic school that are 31 not necessary to implement this section. 32 (3) Rules adopted by the state board of education to 33 implement this section that impose an undue burden on a 34 nonpublic school are invalid. 35 -41- HF 2754.4036 (1) 91 jda/jh 41/ 53
(4) A nonpublic school shall be given the maximum freedom 1 possible to provide for the educational needs of the school’s 2 students, consistent with state and federal law. 3 DIVISION IX 4 SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL 5 REQUIREMENTS 6 Sec. 76. DEPARTMENT OF EDUCATION —— SCHEDULE OF REQUIRED 7 TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS. 8 1. The department of education shall convene and provide 9 administrative support to a task force that shall study the 10 training programs in which teachers in this state are required 11 to participate pursuant to state law and the requirements 12 associated with renewing a teaching license. 13 2. Any expense incurred by a member of the task force 14 shall be the responsibility of the individual member or the 15 respective entity represented by the member. 16 3. The task force shall submit its findings and 17 recommendations to the general assembly on or before 18 December 31, 2026. The recommendations must include specific 19 recommendations related to how to change current law to create 20 a more manageable training program schedule and licensure 21 renewal requirement schedule for teachers. 22 DIVISION X 23 STATEWIDE PRESCHOOL PROGRAM 24 Sec. 77. Section 256.163, subsection 1, paragraph c, Code 25 2026, is amended to read as follows: 26 c. Preschool programs at school districts approved to 27 participate in the preschool program , or at community-based 28 providers approved to directly participate in the preschool 29 program, under chapter 256C . 30 Sec. 78. Section 256C.1, subsection 1, Code 2026, is amended 31 to read as follows: 32 1. “Approved local program” means a school district’s 33 program or community-based provider’s program for four-year-old 34 children approved by the department of education to provide 35 -42- HF 2754.4036 (1) 91 jda/jh 42/ 53
high quality high-quality preschool instruction. 1 Sec. 79. Section 256C.1, Code 2026, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 1A. Community-based provider approved 4 to directly participate in the preschool program” means a 5 community-based provider that meets the community-based 6 provider requirements under section 256C.3 and has been 7 approved by the department to directly participate in the 8 preschool program. “Community-based provider approved to 9 directly participate in the preschool program” does not mean a 10 community-based provider that partners with a school district’s 11 approved local program. 12 Sec. 80. Section 256C.3, subsection 1, paragraph b, Code 13 2026, is amended to read as follows: 14 b. If space and funding are available, including funding 15 from another school district account or fund from which 16 preschool program expenditures are authorized by law, a school 17 district approved to participate in the preschool program or 18 community-based provider approved to directly participate in 19 the preschool program may enroll and pay the cost of attendance 20 for a younger or older child in the preschool program; however, 21 the child shall not be counted for state funding purposes. 22 Sec. 81. Section 256C.3, subsection 2, paragraph a, 23 subparagraph (1), Code 2026, is amended to read as follows: 24 (1) The individual is either employed by or under contract 25 with the school district , or with the community-based provider 26 approved to directly participate in the preschool program, that 27 is implementing the program. 28 Sec. 82. Section 256C.3, subsection 3, unnumbered paragraph 29 1, Code 2026, is amended to read as follows: 30 The state board shall adopt rules to further define the 31 following preschool program requirements which shall be used 32 to determine whether or not a local program implemented by a 33 school district approved to implement the preschool program or 34 a community-based provider directly approved to implement the 35 -43- HF 2754.4036 (1) 91 jda/jh 43/ 53
preschool program qualifies as an approved local program: 1 Sec. 83. Section 256C.3, subsection 3, paragraph h, Code 2 2026, is amended to read as follows: 3 h. Provision for ensuring that children receiving care from 4 other child care arrangements can participate in the preschool 5 program with minimal disruption due to transportation and 6 movement from one site to another. The children participating 7 in the preschool program may be transported by the school 8 district or community-based provider to activities associated 9 with the program along with other children. 10 Sec. 84. Section 256C.3, Code 2026, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 4A. Community-based provider 13 requirements. The state board shall adopt rules to further 14 define the following requirements of community-based providers 15 approved to directly participate in the preschool program in 16 implementing the preschool program: 17 a. Methods of demonstrating readiness to implement 18 high-quality instruction in the local program shall be 19 identified. 20 b. A community-based provider shall participate in data 21 collection and performance measurement processes and reporting 22 as defined by rule. 23 c. Professional development for community-based provider 24 preschool teachers shall be addressed in the community-based 25 provider’s professional development plan. 26 Sec. 85. Section 256C.3, subsection 5, paragraphs a, b, and 27 d, Code 2026, are amended to read as follows: 28 a. The department shall implement an application and 29 selection process for school district participation and 30 community-based provider participation in the preschool program 31 that includes but is not limited to the enrollment requirements 32 provided under section 256C.4 . 33 b. The department shall track the progress of 34 students served by a school district preschool program or 35 -44- HF 2754.4036 (1) 91 jda/jh 44/ 53
community-based provider preschool program and the students’ 1 performance in elementary and secondary education. 2 d. The state board, in collaboration with the department, 3 shall ensure that the administrative rules adopted to support 4 the preschool program emphasize that children’s access to 5 the program is voluntary, that the preschool foundation aid 6 provided to a school district or a community-based provider is 7 provided based upon the enrollment of eligible students in the 8 school district’s or community-based provider’s local program 9 regardless of whether an eligible student is a resident of the 10 school district, and that agreements entered into by a school 11 district for the provision of programming in settings other 12 than the school district’s facilities are between the school 13 district and the private provider. 14 Sec. 86. Section 256C.4, subsection 1, Code 2026, is amended 15 to read as follows: 16 1. General State funding for school district approved to 17 participate in the preschool program . 18 a. State funding provided under the preschool program to 19 school districts shall be based upon the enrollment of eligible 20 students in the preschool programming provided by a school 21 district approved to participate in the preschool program. 22 b. A school district approved to participate in the 23 preschool program may authorize expenditures for the district’s 24 preschool programming from any of the revenue sources available 25 to the district from the sources listed in chapter 298A , 26 provided the expenditures are within the uses permitted for the 27 revenue source. In addition, the use of the revenue source 28 for preschool or prekindergarten programming must have been 29 approved prior to any expenditure from the revenue source for 30 the district’s approved local program. 31 c. Funding provided under the preschool program is intended 32 to supplement, not supplant, existing public funding for 33 preschool programming. 34 d. Preschool foundation aid funding shall not be commingled 35 -45- HF 2754.4036 (1) 91 jda/jh 45/ 53
with the other state aid payments made under section 257.16 1 to a school district and shall be accounted for by the local 2 school district separately from the other state aid payments. 3 Preschool foundation aid payments made to school districts are 4 miscellaneous income for purposes of chapter 257 . A school 5 district shall maintain a separate listing within its budget 6 for preschool foundation aid payments received and expenditures 7 made. A school district shall certify to the department of 8 education that preschool foundation aid funding received by 9 the school district was used to supplement, not supplant, 10 moneys otherwise received and used by the school district for 11 preschool programming. 12 e. Preschool foundation aid funding shall not be used 13 for the costs of constructing a facility in connection 14 with an approved local program. Preschool foundation aid 15 funding may be used by approved local programs and community 16 providers community-based providers that partner with a 17 school district’s local program for any purpose determined 18 by the board of directors of the school district to meet 19 standards for high-quality preschool instruction and for 20 purposes that directly or indirectly benefit students 21 enrolled in the approved local program, including but not 22 limited to professional development for preschool teachers, 23 instructional equipment and supplies, material and equipment 24 designed to develop pupils’ large and small motor skills, 25 translation services, playground equipment and repair costs, 26 food and beverages used by children in the approved local 27 program, safety equipment, facility rental fees, and for 28 other direct costs that enhance the approved local program, 29 including by contracting with community partners for any 30 such services. Preschool foundation aid funding may be used 31 by approved local programs for the costs of transportation 32 involving children participating in the preschool program. 33 The costs of transporting other children associated with the 34 preschool program or transported as provided in section 256C.3, 35 -46- HF 2754.4036 (1) 91 jda/jh 46/ 53
subsection 3 , paragraph “h” , may be prorated by the school 1 district. Preschool foundation aid funding received by an 2 approved local program that remains unexpended and unobligated 3 at the end of a fiscal year beginning on or after July 1, 2017, 4 shall be used to build the approved local program’s preschool 5 program capacity in the next succeeding fiscal year excluding 6 that portion of such unexpended and unobligated funding that 7 the school district authorizes for transfer for deposit in the 8 school district’s flexibility account established under section 9 298A.2, subsection 2 , if the statutory requirements for the use 10 of such funding are met. For purposes of determining whether a 11 school district has authority to transfer preschool foundation 12 aid funding for deposit in the school district’s flexibility 13 account established under section 298A.2, subsection 2 , the 14 school district must have provided preschool programming 15 during the fiscal year for which funding remains unexpended 16 and unobligated to all eligible students for whom a timely 17 application for enrollment was submitted. 18 f. The receipt of funding by a school district for the 19 purposes of this chapter , the need for additional funding 20 for the purposes of this chapter , or the enrollment count of 21 eligible students under this chapter shall not be considered 22 to be unusual circumstances, create an unusual need for 23 additional funds, or qualify under any other circumstances that 24 may be used by the school budget review committee to grant 25 supplemental aid to or establish a modified supplemental amount 26 for a school district under section 257.31 . 27 g. For the fiscal year beginning July 1, 2015, and each 28 succeeding fiscal year, of the amount of preschool foundation 29 aid received by a school district for a fiscal year in 30 accordance with section 257.16 , not more than five percent may 31 be used by the school district for administering the district’s 32 approved local program. Outreach activities and rent for 33 facilities not owned by the school district are permissive uses 34 of the administrative funds. 35 -47- HF 2754.4036 (1) 91 jda/jh 47/ 53
h. For the fiscal year beginning July 1, 2015, and each 1 succeeding fiscal year, of the amount of preschool foundation 2 aid received by a school district for a fiscal year in 3 accordance with section 257.16 , not less than ninety-five 4 percent of the per pupil amount shall be passed through to 5 a community-based provider for each pupil enrolled in the 6 district’s approved local program. For the fiscal year 7 beginning July 1, 2015, and each succeeding fiscal year, not 8 more than ten percent of the amount of preschool foundation aid 9 passed through to a community-based provider may be used by the 10 community-based provider for administrative costs. The costs 11 of outreach activities and rent for facilities not owned by 12 the school district are permissive administrative costs. The 13 costs of transportation involving children participating in the 14 preschool program and other children may be prorated. 15 Sec. 87. Section 256C.4, Code 2026, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 1A. State preschool funding for 18 community-based providers approved to directly participate in the 19 preschool program. 20 a. State preschool funding shall not be used for the costs 21 of constructing a facility in connection with an approved 22 local program. Preschool foundation aid funding may be used 23 by community-based providers for any purpose determined by the 24 community-based provider to meet standards for high-quality 25 preschool instruction and for purposes that directly or 26 indirectly benefit students enrolled in the approved local 27 program, including but not limited to professional development 28 for preschool teachers, instructional equipment and supplies, 29 material and equipment designed to develop pupils’ large and 30 small motor skills, translation services, playground equipment 31 and repair costs, food and beverages used by children in the 32 approved local program, safety equipment, facility rental fees, 33 and for other direct costs that enhance the approved local 34 program, including by contracting with other community partners 35 -48- HF 2754.4036 (1) 91 jda/jh 48/ 53
for any such services. State preschool funding may be used 1 by approved local programs for the costs of transportation 2 involving children participating in the preschool program. 3 Preschool foundation aid funding received by a community-based 4 provider approved to directly participate in the preschool 5 program that remains unexpended and unobligated at the end 6 of a fiscal year shall be used to build the community-based 7 provider’s capacity in the next succeeding fiscal year. 8 b. For the fiscal year beginning July 1, 2025, and each 9 succeeding fiscal year, of the amount of state preschool 10 funding received by a community-based provider approved 11 to directly participate in the preschool program for a 12 fiscal year, not more than five percent may be used by the 13 community-based provider for administering the approved local 14 program. Outreach activities and rent for facilities not owned 15 by the community-based provider are permissive uses of the 16 administrative funds. 17 Sec. 88. Section 256C.4, subsection 2, paragraph a, Code 18 2026, is amended to read as follows: 19 a. To be included as an eligible student in the enrollment 20 count of the preschool programming provided by a school 21 district approved to participate in the preschool program or 22 a community-based provider approved to directly participate 23 in the preschool program , a child must be four years of age 24 by September 15 in the base year and attending the school 25 district’s or community-based provider’s approved local 26 program. 27 Sec. 89. Section 256C.5, subsection 1, paragraphs c and d, 28 Code 2026, are amended to read as follows: 29 c. “Preschool budget enrollment” means the figure that is 30 equal to fifty percent of the actual enrollment of eligible 31 students in the preschool programming provided by a school 32 district approved to participate in the preschool program or a 33 community-based provider approved to directly participate in 34 the preschool program on October 1 of the base year, or the 35 -49- HF 2754.4036 (1) 91 jda/jh 49/ 53
first Monday in October if October 1 falls on a Saturday or 1 Sunday. 2 d. “Preschool foundation aid” means the product of the 3 regular program state cost per pupil for the budget year 4 multiplied by the school district’s preschool budget enrollment 5 or the community-based provider’s preschool budget enrollment . 6 Sec. 90. Section 256C.5, Code 2026, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 2A. Preschool foundation aid community-based 9 provider amount. For the initial school year for which a 10 community-based provider approved to directly participate in 11 the preschool program receives that approval and implements 12 the preschool program, the preschool foundation aid payable 13 to the community-based provider is the product of the regular 14 program state cost per pupil for the school year multiplied 15 by fifty percent of the community-based provider’s eligible 16 student enrollment on the date in the school year determined 17 by rule. For budget years subsequent to the initial year 18 for which a community-based provider approved to directly 19 participate in the preschool program receives that initial 20 approval and implements the preschool program, the preschool 21 foundation aid is the same as calculated pursuant to subsection 22 1. The funding for the preschool foundation aid payable to the 23 community-based provider shall be paid from the appropriation 24 made in section 257.16. Continuation of a community-based 25 provider’s participation in the preschool program for a second 26 or subsequent budget year is subject to the approval of the 27 department based upon the community-based provider’s compliance 28 with accountability provisions and the department’s on-site 29 review of the community-based provider’s implementation of the 30 preschool program. 31 Sec. 91. Section 256C.5, subsection 3, Code 2026, is amended 32 to read as follows: 33 3. Aid payments. 34 a. Preschool foundation aid shall be paid as part of the 35 -50- HF 2754.4036 (1) 91 jda/jh 50/ 53
state aid payments made to school districts in accordance with 1 section 257.16 . 2 b. Preschool foundation aid paid directly to community-based 3 providers shall be paid to the community-based provider in 4 monthly installments beginning on September 15 of a budget year 5 and ending on or about June 15 of the budget year as determined 6 by the department of management, taking into consideration the 7 relative budget and cash position of the state resources. 8 Sec. 92. EMERGENCY RULES. The state board of education may 9 adopt emergency rules under section 17A.4, subsection 3, and 10 section 17A.5, subsection 2, paragraph “b”, to implement the 11 provisions of this division of this Act and the rules shall 12 be effective immediately upon filing unless a later date is 13 specified in the rules. Any rules adopted in accordance with 14 this section shall also be published as a notice of intended 15 action as provided in section 17A.4. 16 DIVISION XI 17 SCHOOL TUITION ORGANIZATIONS —— PRESCHOOL STARTUP COSTS 18 Sec. 93. SCHOOL TUITION ORGANIZATIONS —— PRESCHOOL STARTUP 19 COSTS. 20 1. As used in this section: 21 a. “Preschool” means a nonpublic provider of preschool 22 services that commenced operations in 2025; is located in a 23 city with a population of greater than thirty-nine thousand 24 but less than forty thousand according to the 2020 federal 25 decennial census; and is located in a county with a population 26 of greater than one hundred fifty-five thousand but less than 27 one hundred eighty thousand, according to the 2020 federal 28 decennial census. 29 b. “School tuition organization” means the same as defined 30 in section 422.11S, subsection 6. 31 2. a. Notwithstanding any provision of law to the contrary, 32 a school tuition organization that represents schools located 33 in a county with a population of greater than one hundred 34 fifty-five thousand but less than one hundred eighty thousand, 35 -51- HF 2754.4036 (1) 91 jda/jh 51/ 53
according to the 2020 federal decennial census, may provide 1 funding to a preschool in an amount up to the costs the 2 preschool incurred in its first year of operation related to 3 the provision of preschool services. 4 b. Payments made pursuant to paragraph “a” shall not count 5 toward the allocation of annual revenue standards established 6 in section 422.11S, subsection 6, paragraph “c”, subparagraph 7 (1). 8 DIVISION XII 9 MISCELLANEOUS PROVISIONS 10 Sec. 94. Section 261E.8, subsection 2, paragraph a, Code 11 2026, is amended to read as follows: 12 a. (1) Students from accredited nonpublic schools , and 13 students receiving competent private instruction or independent 14 private instruction under chapter 299A , and students from 15 charter schools established pursuant to chapter 256E may access 16 the program through the school district in which the accredited 17 nonpublic school , or private institution , or charter school is 18 located. 19 (2) Students from charter schools established pursuant to 20 chapter 256E that provide educational instruction and course 21 content that is delivered entirely over the internet may access 22 the program through the students’ school district of residence. 23 Sec. 95. Section 282.18, subsection 2, paragraph b, Code 24 2026, is amended to read as follows: 25 b. (1) The board of the receiving district shall enroll the 26 pupil in a school in the receiving district for the following 27 school year unless the receiving district has insufficient 28 classroom space for the pupil or unless the receiving district 29 has prohibited the pupil from enrolling pursuant to subsection 30 14 . The board of directors of a receiving district may adopt 31 a policy granting the superintendent of the school district 32 authority to approve open enrollment applications. If the 33 request is granted, the board shall transmit a copy of the form 34 to the parent or guardian and the school district of residence 35 -52- HF 2754.4036 (1) 91 jda/jh 52/ 53
within five days after board action, but not later than June 1 1 of the preceding school year. The parent or guardian may 2 withdraw the request at any time prior to the start of the 3 school year. 4 (2) A denial of a request by the board of a receiving 5 district is not subject to appeal. The board of a receiving 6 district, or the superintendent of the receiving district 7 if the board of the receiving district has adopted a policy 8 granting the superintendent the authority to approve open 9 enrollment applications, shall document the reason for the 10 denial of a request and submit information related to the 11 denial to the department of education in a manner prescribed 12 by the department. 13 DIVISION XIII 14 IMMEDIATE EFFECTIVE DATE 15 Sec. 96. EFFECTIVE DATE. This Act, being deemed of 16 immediate importance, takes effect upon enactment. > 17 2. Title page, by striking lines 1 through 9 and inserting 18 < An Act relating to education, including by modifying 19 provisions related to charter school approval, contracts, 20 funding, and operations, services provided to charter 21 schools by area education agencies, charter school student 22 participation in extracurricular activities provided by 23 public schools, the Iowa public employees’ retirement system, 24 education savings accounts, independent accreditation, 25 teacher training and licensure, the statewide voluntary 26 preschool program, the district-to-community college sharing 27 or concurrent enrollment program, open enrollment, school 28 tuition organizations, and innovation zone schools; making 29 appropriations; and including effective date and applicability 30 provisions. > 31 ______________________________ WHEELER of Sioux -53- HF 2754.4036 (1) 91 jda/jh 53/ 53 #2.