S.F. 170 Section 1. NEW SECTION . 256F.12 Deregulated schools pilot 1 program. 2 1. Program established. A deregulated schools pilot program 3 is established to provide public and nonpublic schools with 4 greater flexibility. By January 1, 2012, the department shall 5 select not more than six public school pilot project proposals 6 and not more than six nonpublic school pilot project proposals 7 submitted in accordance with subsection 3. School districts 8 and nonpublic schools selected to implement pilot projects 9 pursuant to this section may continue the projects through the 10 2016-2017 school year. 11 2. Program purposes. The purposes of the deregulated 12 schools pilot program shall be to accomplish the following: 13 a. Improve student learning. 14 b. Increase learning opportunities for all students, with 15 special emphasis on expanded learning experiences for students 16 identified as academically low-achieving. 17 c. Encourage different and innovative methods to address 18 various learning styles. 19 d. Encourage different and innovative methods of teaching. 20 e. Increase choice of learning opportunities for children. 21 f. Establish a new form of accountability for schools. 22 g. Create innovative measurement tools for measuring 23 learning outcomes. 24 h. Make the school the unit for improvement. 25 i. Relieve schools of paperwork and procedures that 26 are otherwise required by the state, except those required 27 for purposes of health, safety, fiscal accountability, and 28 documentation of student achievement. 29 3. Project proposal —— elements. 30 a. The board of directors of a school district and the 31 authorities in charge of a nonpublic school may submit a 32 proposal for a deregulated school to the department not later 33 than October 1, 2011. The department may provide technical 34 assistance to a pilot project applicant upon written request. 35 -1- LSB 2069XS (2) 84 kh/rj 1/ 6

S.F. 170 The terms and conditions for the operation of a deregulated 1 school shall be set forth in the proposal. 2 b. The proposal shall address, and criteria for approval of 3 the proposal shall be based on, the following: 4 (1) The school’s budget in detail. 5 (2) The methods by which academic achievement will be 6 measured. 7 (3) The measures that will be used to assure that at least 8 ninety-five percent of the students enrolled in the school will 9 demonstrate a minimum of one year of academic growth for each 10 year of instruction. 11 (4) Assurance that the deregulated school shall, at a 12 minimum, administer the Iowa test of basic skills and the Iowa 13 tests of educational development in the manner and frequency 14 used by the majority of school districts in this state. 15 (5) The method to be used for resolving conflicts between 16 the school and the school district or the authorities in charge 17 of the school, as appropriate. 18 (6) The admissions procedures and dismissal procedures to 19 be employed, including the school’s code of student conduct. 20 (7) The ways by which the school’s racial and ethnic balance 21 reflects the community it serves or reflects the racial and 22 ethnic range of other schools located within the boundaries of 23 the school district in which the school is located. 24 (8) The proposed financial and administrative management 25 of the school including a statement of the areas in which 26 the school will have administrative and fiscal autonomy and, 27 in the case of a deregulated public school, the areas in 28 which the school will follow district school board fiscal and 29 administrative policies. 30 (9) The manner in which the school will be insured, the 31 amounts of coverage, whether the school will be required to 32 have liability insurance and, if so, the terms and conditions 33 of the liability insurance. 34 (10) The qualifications to be required of the teachers. 35 -2- LSB 2069XS (2) 84 kh/rj 2/ 6

S.F. 170 c. The proposal shall be innovative but consistent with 1 the educational goals adopted by the state board pursuant to 2 section 256.7, subsection 4. 3 4. Eligible students. A deregulated school shall be open 4 to all students residing in the school district’s boundaries 5 or within the nonpublic school’s attendance boundaries. The 6 deregulated school shall have maximum flexibility to enroll 7 students. 8 5. Requirements. A deregulated public school shall be 9 free of tuition or fees, except those fees normally charged by 10 other public schools. Any deregulated school shall meet all 11 applicable state and local health and safety requirements. 12 6. Discrimination prohibited. A deregulated school 13 shall not discriminate in its student admissions policies or 14 practices on the basis of a student’s intellectual or athletic 15 ability, measures of achievement or aptitude, or status as a 16 person with a disability. However, a deregulated school may 17 limit admission to students who are within a particular range 18 of ages or grade levels or on any other basis that would be 19 legal if initiated by a school district. 20 7. Reports. 21 a. The deregulated school shall make an annual progress 22 report to the school district or the authorities in charge of 23 the school, as appropriate, and to the department by a date 24 specified by the department. The report shall contain at least 25 the following information: 26 (1) The school’s progress toward achieving the goals 27 outlined in its pilot project proposal. 28 (2) The information school districts and accredited 29 nonpublic schools are required to submit pursuant to section 30 256.7, subsection 21, paragraph “c” . 31 (3) Financial records of the school, including revenues and 32 expenditures. 33 (4) Salary and benefit levels of school employees. 34 b. Upon receipt of the annual progress reports submitted 35 -3- LSB 2069XS (2) 84 kh/rj 3/ 6

S.F. 170 pursuant to paragraph “a” , the department shall provide the 1 general assembly with a copy of each report and an analysis and 2 comparison of the overall performance of students, including a 3 comparison of the Iowa test of basic skills and Iowa tests of 4 educational development results for all students in deregulated 5 schools with the results for all public school students 6 enrolled in the same grade levels in the school district in 7 which the deregulated school is located. 8 8. Applicability of statutes. 9 a. A deregulated school shall operate in accordance with its 10 pilot project proposal and shall be exempt from statutes and 11 administrative rules otherwise applicable to school districts 12 and accredited nonpublic schools, except those statutes and 13 rules relating to student health, safety, and welfare, or as 14 otherwise required by this section. 15 b. A deregulated public school shall be subject to the 16 following: 17 (1) The open meetings and open records requirements of 18 chapters 21 and 22. 19 (2) The same financial audits, audit procedures, and 20 audit requirements as a school district consistent with the 21 requirements of sections 11.6, 11.14, 11.19, 256.9, subsection 22 19, and section 279.29. 23 (3) The initial background investigation requirements set 24 forth in section 279.13, subsection 1, paragraph “b” . 25 9. Funding. The cost of educating students enrolled in 26 a deregulated public school shall be paid in the same manner 27 as for students enrolled in school districts as provided in 28 section 273.9, and chapters 256B and 257. 29 10. Length of school year. A deregulated school shall 30 provide instruction for at least the number of days required 31 by section 279.10, or the equivalent number of hours, and may 32 provide instruction for a number of days in addition to that 33 required in section 279.10. 34 11. Facilities. A deregulated school shall utilize 35 -4- LSB 2069XS (2) 84 kh/rj 4/ 6

S.F. 170 facilities that comply with the state building code adopted 1 pursuant to section 103A.7 and with the rules adopted for 2 schools by the fire marshal pursuant to section 100.35. 3 12. Repeal. This section is repealed January 1, 2018. 4 EXPLANATION 5 This bill establishes a deregulated schools pilot program 6 to provide selected public and nonpublic schools with greater 7 flexibility. The bill directs the department of education 8 to select from the applications submitted six public and six 9 nonpublic deregulated school pilot projects. The bill exempts 10 the deregulated schools from statutes and administrative 11 rules otherwise applicable to school districts and accredited 12 nonpublic schools, except those relating to student health, 13 safety, and welfare, and, for deregulated public schools, open 14 meetings and records, financial audits, and initial background 15 investigations of new teachers. The pilot projects may 16 continue through the 2016-2017 school year. 17 The bill sets forth the program purposes and the pilot 18 project proposal requirements. The terms and conditions for 19 the operation of a deregulated school must be set forth in the 20 proposal. The bill lists the issues proposals must address and 21 the criteria for approval of the proposals. 22 A deregulated school must be open to all students residing 23 within the school district or nonpublic school attendance 24 boundaries. It must not discriminate, and in the case of 25 deregulated public schools, shall be free of tuition and fees, 26 except those fees a school district is authorized to charge. 27 A deregulated school may limit admission to students who are 28 within a particular range of ages or grade levels or on any 29 other basis that would be legal if initiated by a school 30 district. 31 Deregulated schools shall, at a minimum, administer the Iowa 32 test of basic skills (ITBS) and the Iowa tests of educational 33 development (ITED) in the manner and frequency used by the 34 majority of school districts in this state. 35 -5- LSB 2069XS (2) 84 kh/rj 5/ 6

S.F. 170 The school must make an annual progress report to the 1 school district or the authorities in charge of the school, 2 as appropriate, and to the department of education. Upon 3 receipt of the reports, the department must provide the 4 general assembly with a copy of each report and an analysis and 5 comparison of the overall performance of students, including a 6 comparison of the results of the annual ITBS and ITED results 7 for all students in deregulated schools with the results for 8 all public school students in the same grade in the school 9 district in which the deregulated school is located. 10 The cost of educating students enrolled in a deregulated 11 public school shall be paid in the same manner as for students 12 enrolled in school districts. 13 A deregulated school must provide instruction for at least 14 the statutorily required 180 days, or the equivalent number of 15 hours, and may provide instruction for additional days. 16 A deregulated school must utilize facilities that comply 17 with the state building code and must comply with the rules 18 adopted for schools by the fire marshal. 19 The deregulated schools pilot program is repealed January 20 1, 2018. 21 -6- LSB 2069XS (2) 84 kh/rj 6/ 6