Senate File 2241 - Introduced SENATE FILE 2241 BY ZAUN , CHELGREN , BOETTGER , and McKINLEY A BILL FOR An Act relating to education and school district funding 1 by abolishing the department of education and the state 2 board of education, modifying the duties and authority of 3 certain state and local governmental entities, establishing 4 an education savings grant program and fund, making 5 appropriations, modifying the school district funding 6 formula, providing penalties, and including effective date 7 and applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 5749XS (19) 84 md/sc

S.F. 2241 DIVISION I 1 REPEAL OF DEPARTMENT OF EDUCATION AND 2 STATE BOARD OF EDUCATION 3 Section 1. Section 256A.2, subsection 1, paragraph b, Code 4 2011, is amended by striking the paragraph. 5 Sec. 2. Section 256A.2, subsection 2, Code 2011, is amended 6 to read as follows: 7 2. Staff assistance for the council shall be provided by the 8 department of education human services . Members of the council 9 shall be reimbursed for actual and necessary expenses incurred 10 while engaged in their official duties and shall receive per 11 diem compensation at the level authorized under section 7E.6, 12 subsection 1 , paragraph “a” . 13 Sec. 3. Section 256A.3, subsection 4, Code 2011, is amended 14 to read as follows: 15 4. Make recommendations to the department of education 16 human services and the general assembly regarding appropriate 17 curricula and staff qualifications and training for early 18 elementary education, coordination of the curricula with 19 child development programs, and the development of an at-risk 20 children definition for use in school-district-sponsored early 21 elementary and before and after school child care programs. 22 Sec. 4. Section 256A.4, subsection 2, unnumbered paragraph 23 1, Code 2011, is amended to read as follows: 24 The department of education human services shall develop 25 guidelines for family support programs. Program components may 26 include, but are not limited to, all of the following: 27 Sec. 5. NEW SECTION . 256B.16 Transfer of authority and 28 duties. 29 1. Beginning July 1, 2013, the authority and duties of the 30 department of education, the state board of education, and the 31 director of the department of education under this chapter 32 shall be transferred to the department of human services and 33 the director of human services. Accordingly, beginning July 34 1, 2013, all references to the department of education under 35 -1- LSB 5749XS (19) 84 md/sc 1/ 54

S.F. 2241 this chapter and references to the department of education 1 under other provisions of law relating to this chapter shall 2 mean the department of human services and all references to 3 the state board of education or the director of the department 4 of education under this chapter or other provisions of law 5 relating to this chapter shall mean the director of human 6 services. 7 2. Beginning July 1, 2013, the division of special education 8 created within the department of education under section 256B.1 9 shall be transferred to the department of human services. 10 3. Any moneys remaining in any account or fund under the 11 control of the department of education at the conclusion 12 of the fiscal year beginning July 1, 2012, relative to 13 the provisions of this chapter shall be transferred to the 14 control of the department of human services for such purposes. 15 Notwithstanding section 8.33, the moneys transferred in 16 accordance with this subsection shall not revert to the account 17 or fund from which appropriated or transferred. 18 4. Any contract entered into by the department of education 19 relating to the provisions of this chapter in effect at the 20 conclusion of the fiscal year beginning July 1, 2012, shall 21 continue in full force and effect pending transfer of such 22 contracts to the department of human services. 23 5. Any rule, regulation, form, order, or directive 24 promulgated by the department of education relative to the 25 provisions of this chapter in existence at the conclusion of 26 the fiscal year beginning July 1, 2012, shall continue in full 27 force and effect until amended, repealed, or supplemented by 28 affirmative action of the department of human services under 29 the duties and powers established in this chapter and under the 30 procedure established in subsection 6. 31 6. In regard to updating references and format in the Iowa 32 administrative code in order to correspond to the transferring 33 of duties of this chapter, the administrative rules coordinator 34 and the administrative rules review committee, in consultation 35 -2- LSB 5749XS (19) 84 md/sc 2/ 54

S.F. 2241 with the administrative code editor, shall jointly develop a 1 schedule for the necessary updating of the Iowa administrative 2 code. 3 Sec. 6. Section 256C.1, Code 2011, is amended to read as 4 follows: 5 256C.1 Definitions. 6 As used in this chapter : 7 1. “Approved local program” means a school district’s 8 program for four-year-old children approved by the department 9 of education to provide high quality preschool instruction . 10 2. “Department” means the department of education. 11 3. “Director” means the director of the department of 12 education. 13 4. 2. “Preschool program” means the statewide preschool 14 program for four-year-old children created in accordance with 15 this chapter . 16 5. 3. “School district approved to participate in the 17 preschool program” means a school district that meets the 18 school district requirements under section 256C.3 and has been 19 approved by the department to participate in the preschool 20 program . 21 6. “State board” means the state board of education. 22 Sec. 7. Section 256C.2, subsection 2, Code 2011, is amended 23 by striking the subsection. 24 Sec. 8. Section 256C.3, subsection 2, paragraph a, 25 subparagraph (3), Code 2011, is amended to read as follows: 26 (3) The individual possesses a bachelor’s or graduate 27 degree from an accredited college or university with a major 28 in early childhood education or other appropriate major 29 identified in rule by the department as determined by the 30 school district’s board of directors . 31 Sec. 9. Section 256C.3, subsection 3, unnumbered paragraph 32 1, Code 2011, is amended to read as follows: 33 The state board shall adopt rules to further define the 34 following preschool program requirements which shall be used to 35 -3- LSB 5749XS (19) 84 md/sc 3/ 54

S.F. 2241 determine whether or not a Each local program implemented by 1 a school district approved to implement the preschool program 2 qualifies as an approved local program shall address or conform 3 with all of the following : 4 Sec. 10. Section 256C.3, subsection 4, Code 2011, is amended 5 by striking the subsection and inserting in lieu thereof the 6 following: 7 4. School district requirements. 8 a. Subject to implementation of chapter 28E agreements 9 between a school district and community-based providers of 10 services to four-year-old children, a four-year-old child who 11 is enrolled in a child care center or child development home 12 licensed or registered under chapter 237A, or in an existing 13 public or private preschool program, shall be eligible for 14 services provided by the school district’s local preschool 15 program. 16 b. Professional development for school district preschool 17 teachers shall be addressed in the school district’s 18 professional development plan implemented in accordance with 19 section 284.6. 20 Sec. 11. Section 256C.3, subsection 5, Code 2011, is amended 21 by striking the subsection. 22 Sec. 12. Section 256C.4, subsection 1, paragraph d, Code 23 2011, is amended to read as follows: 24 d. Preschool foundation aid funding shall not be commingled 25 with the other state aid payments made under section 257.16 26 to a school district and shall be accounted for by the local 27 school district separately from the other state aid payments. 28 Preschool foundation aid payments made to school districts 29 are miscellaneous income for purposes of chapter 257 . A 30 school district shall maintain a separate listing within its 31 budget for preschool foundation aid payments received and 32 expenditures made. A school district shall certify to the 33 department of education that preschool Preschool foundation aid 34 funding received by the school district was shall be used to 35 -4- LSB 5749XS (19) 84 md/sc 4/ 54

S.F. 2241 supplement, not supplant, moneys otherwise received and used by 1 the school district for preschool programming. 2 Sec. 13. Section 256C.5, subsection 1, paragraph a, Code 3 Supplement 2011, is amended to read as follows: 4 a. “Base year” , “budget year” , “regular program state cost 5 per pupil” , and “school district” mean the same as defined or 6 described in chapter 257 . 7 Sec. 14. Section 256C.5, subsection 1, Code Supplement 8 2011, is amended by adding the following new paragraph: 9 NEW PARAGRAPH . e. “Regular program state cost per pupil” 10 means five thousand eight hundred eighty-three dollars. 11 Sec. 15. Section 256C.5, subsection 2, Code Supplement 12 2011, is amended to read as follows: 13 2. Preschool foundation aid district amount. 14 a. For the initial school year for which a school district 15 approved to participate in the preschool program receives that 16 approval and implements the preschool program, the funding for 17 the preschool foundation aid payable to that school district 18 shall be paid from the appropriation made for that school 19 year in section 256C.6 or in another appropriation made for 20 purposes of this chapter . For that school year, the preschool 21 foundation aid payable to the school district is the product of 22 the regular program state cost per pupil for the school year 23 multiplied by sixty percent of the school district’s eligible 24 student enrollment on the date in the school year determined 25 by rule . 26 b. For budget years subsequent to the initial school year 27 for which a school district approved to participate in the 28 preschool program receives that initial approval and implements 29 the preschool program, the funding for the preschool foundation 30 aid payable to that school district shall be paid from the 31 appropriation made in section 257.16 . Continuation of a 32 school district’s participation in the preschool program for 33 a second or subsequent budget year is subject to the approval 34 of the department based upon the school district’s compliance 35 -5- LSB 5749XS (19) 84 md/sc 5/ 54

S.F. 2241 with accountability provisions and the department’s on-site 1 review of the school district’s implementation of the preschool 2 program. 3 Sec. 16. Section 256C.5, subsection 4, Code Supplement 4 2011, is amended by striking the subsection. 5 Sec. 17. NEW SECTION . 256F.12 Transfer of authority and 6 duties. 7 1. Beginning July 1, 2013, the authority and duties of the 8 department of education, the state board, and the director of 9 the department of education under this chapter, to the extent 10 feasible, shall be transferred to the board of directors of 11 the community college serving the merged area in which the 12 charter school or innovation zone school, or such proposed 13 school, is located. Accordingly, beginning July 1, 2013, all 14 references to the department of education, the state board of 15 education, and the director of the department of education 16 under this chapter or other provisions of law relating to this 17 chapter shall mean the board of directors of the community 18 college serving the merged area in which the charter school or 19 innovation zone school, or such proposed school, is located. 20 2. Any contract entered into by the department of education 21 relating to the provisions of this chapter in effect at the 22 conclusion of the fiscal year beginning July 1, 2012, shall 23 continue in full force and effect pending transfer of such 24 contracts to the appropriate community college board of 25 directors. 26 3. Any rule, regulation, form, order, or directive 27 promulgated by the department of education relative to the 28 provisions of this chapter in existence at the conclusion of 29 the fiscal year beginning July 1, 2012, shall continue in full 30 force and effect. 31 Sec. 18. Section 256G.2, subsections 1 and 2, Code 2011, are 32 amended by striking the subsections. 33 Sec. 19. Section 256G.3, subsection 1, paragraph a, 34 subparagraph (2), Code 2011, is amended to read as follows: 35 -6- LSB 5749XS (19) 84 md/sc 6/ 54

S.F. 2241 (2) The policy shall include, in order of consideration, 1 the reasons for which a request to transfer to the research 2 and development school will be allowed by the school district. 3 The research and development school may deny any request for 4 transfer under the policy and such denial for transfer is 5 not subject to appeal under section 290.1 . The research and 6 development school shall report the transfer and enrollment 7 of a new student directly to the department state board of 8 regents . 9 Sec. 20. Section 256G.4, subsection 2, Code 2011, is amended 10 to read as follows: 11 2. The department state board of regents shall be the 12 accreditation agency and as such shall serve as the authority 13 on teacher qualification requirements and waiver provisions. 14 Sec. 21. Section 256G.4, subsection 3, paragraph a, 15 unnumbered paragraph 1, Code 2011, is amended to read as 16 follows: 17 A seventeen-member sixteen-member advisory council is 18 created, composed of the following members: 19 Sec. 22. Section 256G.4, subsection 3, paragraph a, 20 subparagraph (1), subparagraph division (a), Code 2011, is 21 amended by striking the subparagraph division. 22 Sec. 23. Section 256G.4, subsection 3, paragraph a, 23 subparagraph (2), unnumbered paragraph 1, Code 2011, is amended 24 to read as follows: 25 Ten members, as follows, who shall be jointly recommended 26 for membership by the president and the director , shall be 27 jointly approved by the state board of regents and the state 28 board of education , shall serve three-year staggered terms, and 29 shall be eligible to serve for two consecutive three-year terms 30 on the council in addition to any partial, initial term: 31 Sec. 24. Section 256G.4, subsection 3, paragraph c, 32 subparagraph (2), Code 2011, is amended to read as follows: 33 (2) The advisory council shall provide an annual report to 34 the president, the director, the state board of regents, the 35 -7- LSB 5749XS (19) 84 md/sc 7/ 54

S.F. 2241 state board of education, and the general assembly. 1 Sec. 25. Section 256G.4, subsection 4, paragraph a, 2 unnumbered paragraph 1, Code 2011, is amended to read as 3 follows: 4 An eleven-member A ten-member standing institutional 5 research committee, appointed by the president and the 6 director , is created, composed of the following members: 7 Sec. 26. Section 256G.4, subsection 4, paragraph a, 8 subparagraph (10), Code 2011, is amended by striking the 9 subparagraph. 10 Sec. 27. NEW SECTION . 256H.4 Transfer of authority and 11 duties. 12 1. Beginning July 1, 2013, the authority and duties of the 13 department of education and the director of the department 14 of education under this chapter shall be transferred to the 15 adjutant general of the state. Accordingly, beginning July 1, 16 2013, all references to the department of education and the 17 director of the department of education under this chapter or 18 other provisions of law relating to this chapter shall mean 19 adjutant general of the state. 20 2. Any contract entered into by the department of education 21 relating to the provisions of this chapter in effect at the 22 conclusion of the fiscal year beginning July 1, 2012, shall 23 continue in full force and effect pending transfer of such 24 contracts to the adjutant general of the state. 25 3. Any rule, regulation, form, order, or directive 26 promulgated by the department of education relative to the 27 provisions of this chapter in existence upon conclusion of the 28 fiscal year beginning July 1, 2012, shall continue in full 29 force and effect. 30 Sec. 28. NEW SECTION . 256I.13 Transfer of authority and 31 duties. 32 1. Beginning July 1, 2013, the authority and duties 33 of the department of education and the director of the 34 department of education under this chapter shall be transferred 35 -8- LSB 5749XS (19) 84 md/sc 8/ 54

S.F. 2241 to the department of human services and the director of 1 human services. Accordingly, beginning July 1, 2013, all 2 references to the department of education or the director 3 of the department of education under this chapter or under 4 other provisions of law relating to this chapter shall mean 5 the department of human services and the director of human 6 services. 7 2. Any moneys remaining in any account or fund under the 8 control of the department of education at the conclusion 9 of the fiscal year beginning July 1, 2012, relative to 10 the provisions of this chapter shall be transferred to the 11 control of the department of human services for such purposes. 12 Notwithstanding section 8.33, the moneys transferred in 13 accordance with this subsection shall not revert to the account 14 or fund from which appropriated or transferred. 15 3. Any contract entered into by the department of education 16 relating to the provisions of this chapter in effect at the 17 conclusion of the fiscal year beginning July 1, 2012, shall 18 continue in full force and effect pending transfer of such 19 contracts to the department of human services. 20 4. Any rule, regulation, form, order, or directive 21 promulgated by the department of education relative to the 22 provisions of this chapter in existence at the conclusion of 23 the fiscal year beginning July 1, 2012, shall continue in full 24 force and effect until amended, repealed, or supplemented by 25 affirmative action of the department of human services under 26 the duties and powers established in this chapter and under the 27 procedure established in subsection 5. 28 5. In regard to updating references and format in the Iowa 29 administrative code in order to correspond to the transferring 30 of duties of this chapter, the administrative rules coordinator 31 and the administrative rules review committee, in consultation 32 with the administrative code editor, shall jointly develop a 33 schedule for the necessary updating of the Iowa administrative 34 code. 35 -9- LSB 5749XS (19) 84 md/sc 9/ 54

S.F. 2241 Sec. 29. Section 257C.5, subsection 1, Code 2011, is amended 1 to read as follows: 2 1. The powers of the authority are vested in and exercised 3 by a board consisting of five members, including the treasurer 4 of state, the director of the department of education, and the 5 director of the department of management, and two three members 6 appointed by the governor, subject to confirmation by the 7 senate. The state officials may designate representatives to 8 serve on the board for them. As far as possible, the governor 9 shall appoint members who are knowledgeable or experienced in 10 the school systems of this state or in finance. 11 Sec. 30. NEW SECTION . 258.18 Transfer of authority and 12 duties. 13 1. Beginning July 1, 2013, the authority and duties of the 14 department of education, the state board of education, and the 15 director of the department of education under this chapter 16 shall be transferred to the department of workforce development 17 and the director of the department of workforce development. 18 Accordingly, beginning July 1, 2013, all references to the 19 department of education under this chapter and references 20 to the department of education under other provisions of 21 law relating to this chapter shall mean the department of 22 workforce development and all references to the state board 23 of education or the director of the department of education 24 under this chapter or other provisions of law relating to this 25 chapter shall mean the director of the department of workforce 26 development. 27 2. Any moneys remaining in any account or fund under the 28 control of the department of education at the conclusion 29 of the fiscal year beginning July 1, 2012, relative to the 30 provisions of this chapter shall be transferred to the control 31 of the department of workforce development for such purposes. 32 Notwithstanding section 8.33, the moneys transferred in 33 accordance with this subsection shall not revert to the account 34 or fund from which appropriated or transferred. 35 -10- LSB 5749XS (19) 84 md/sc 10/ 54

S.F. 2241 3. Any contract entered into by the department of education 1 relating to the provisions of this chapter in effect at the 2 conclusion of the fiscal year beginning July 1, 2012, shall 3 continue in full force and effect pending transfer of such 4 contracts to the department of workforce development. 5 4. Any rule, regulation, form, order, or directive 6 promulgated by the department of education relative to the 7 provisions of this chapter in existence at the conclusion of 8 the fiscal year beginning July 1, 2012, shall continue in full 9 force and effect until amended, repealed, or supplemented by 10 affirmative action of the department of workforce development 11 under the duties and powers established in this chapter and 12 under the procedure established in subsection 5. 13 5. In regard to updating references and format in the Iowa 14 administrative code in order to correspond to the transferring 15 of duties of this chapter, the administrative rules coordinator 16 and the administrative rules review committee, in consultation 17 with the administrative code editor, shall jointly develop a 18 schedule for the necessary updating of the Iowa administrative 19 code. 20 Sec. 31. NEW SECTION . 259.1A Transfer of authority and 21 duties. 22 1. Beginning July 1, 2013, the authority and duties of the 23 department of education, the state board of education, and the 24 director of the department of education under this chapter 25 shall be transferred to the department of workforce development 26 and the director of the department of workforce development. 27 Accordingly, beginning July 1, 2013, all references to the 28 department of education under this chapter and references 29 to the department of education under other provisions of 30 law relating to this chapter shall mean the department of 31 workforce development and all references to the state board 32 of education or the director of the department of education 33 under this chapter or other provisions of law relating to this 34 chapter shall mean the director of the department of workforce 35 -11- LSB 5749XS (19) 84 md/sc 11/ 54

S.F. 2241 development. 1 2. Beginning July 1, 2013, the division of vocational 2 rehabilitation services created within the department of 3 education under section 259.3 shall be transferred to the 4 department of workforce development. 5 3. Any moneys remaining in any account or fund under the 6 control of the department of education at the conclusion 7 of the fiscal year beginning July 1, 2012, relative to the 8 provisions of this chapter shall be transferred to the control 9 of the department of workforce development for such purposes. 10 Notwithstanding section 8.33, the moneys transferred in 11 accordance with this subsection shall not revert to the account 12 or fund from which appropriated or transferred. 13 4. Any contract entered into by the department of education 14 relating to the provisions of this chapter in effect at the 15 conclusion of the fiscal year beginning July 1, 2012, shall 16 continue in full force and effect pending transfer of such 17 contracts to the department of workforce development. 18 5. Any rule, regulation, form, order, or directive 19 promulgated by the department of education relative to the 20 provisions of this chapter in existence at the conclusion of 21 the fiscal year beginning July 1, 2012, shall continue in full 22 force and effect until amended, repealed, or supplemented by 23 affirmative action of the department of workforce development 24 under the duties and powers established in this chapter and 25 under the procedure established in subsection 6. 26 6. In regard to updating references and format in the Iowa 27 administrative code in order to correspond to the transferring 28 of duties of this chapter, the administrative rules coordinator 29 and the administrative rules review committee, in consultation 30 with the administrative code editor, shall jointly develop a 31 schedule for the necessary updating of the Iowa administrative 32 code. 33 Sec. 32. Section 259A.1, Code 2011, is amended to read as 34 follows: 35 -12- LSB 5749XS (19) 84 md/sc 12/ 54

S.F. 2241 259A.1 Tests. 1 The department of education Each board of directors of 2 the community college serving the merged area shall cause to 3 be made available for qualified individuals a high school 4 equivalency diploma. The diploma shall be issued on the basis 5 of satisfactory competence as shown by tests covering all 6 of the following: reading, arts, language arts, writing, 7 mathematics, science, and social studies. 8 Sec. 33. Section 259A.2, unnumbered paragraph 2, Code 2011, 9 is amended to read as follows: 10 Application shall be made to a testing center approved 11 by the department of education board of directors of the 12 community college serving the merged area , accompanied by an 13 application fee in an amount prescribed by the department board 14 of directors of the community college . The test scores shall 15 be forwarded by the testing center to the department board of 16 directors of the community college . 17 Sec. 34. Section 259A.3, Code Supplement 2011, is amended 18 to read as follows: 19 259A.3 Notice and fee. 20 Any applicant who has achieved the minimum passing standards 21 as established by the department, and approved by the state 22 board, board of directors of the community college shall be 23 issued a high school equivalency diploma by the department upon 24 payment of an additional amount determined in rules adopted by 25 the state board of education by the board to cover the actual 26 costs of the production and distribution of the diploma. The 27 state board of education may also by rule establish a fee for 28 the issuance or verification of a transcript which shall be 29 based on the actual costs of the production or verification of 30 a transcript. 31 Sec. 35. Section 259A.4, Code 2011, is amended to read as 32 follows: 33 259A.4 Use of fees. 34 The fees collected under the provisions of this chapter 35 -13- LSB 5749XS (19) 84 md/sc 13/ 54

S.F. 2241 shall be used for the expenses incurred in administering, 1 providing test materials, scoring of examinations and issuance 2 of high school equivalency diplomas, and shall be disbursed 3 on the authorization of the director of the department of 4 education board of directors of the community college . The 5 treasurer of state shall be custodian of the funds paid to the 6 department community college and shall disburse the same on 7 vouchers audited as provided by law. The unobligated balance 8 in such funds at the close of each biennium shall be placed in 9 the general fund of the state. 10 Sec. 36. Section 259A.5, Code 2011, is amended to read as 11 follows: 12 259A.5 Rules. 13 The director of the department of education Each board 14 of directors of the community college shall adopt tests, 15 definitions of terms, and forms as necessary for the 16 administration of this chapter . The state board shall adopt 17 rules under chapter 17A to carry out this chapter . 18 Sec. 37. NEW SECTION . 260C.1A Transfer of authority and 19 duties. 20 1. Beginning July 1, 2013, the authority and duties of the 21 department of education, the state board of education, and the 22 director of the department of education under this chapter 23 shall, to the extent feasible, be transferred to the boards of 24 directors of the community colleges serving the merged areas of 25 the state. Accordingly, beginning July 1, 2013, all references 26 to the department of education, the state board of education, 27 and the director of the department of education under this 28 chapter and references to the department of education, the 29 state board of education, and the director of the department 30 of education under other provisions of law relating to this 31 chapter shall mean the applicable board of directors of a 32 community college. 33 2. Beginning July 1, 2013, transfer of the duties and 34 authority of the department shall also include all duties and 35 -14- LSB 5749XS (19) 84 md/sc 14/ 54

S.F. 2241 authority of the community colleges division created within the 1 department of education under section 260C.6. 2 3. Any moneys remaining in any account or fund under the 3 control of the department of education at the conclusion of the 4 fiscal year beginning July 1, 2012, relative to the provisions 5 of this chapter shall be transferred to the control of the 6 applicable board of directors of a community college for such 7 purposes. Notwithstanding section 8.33, the moneys transferred 8 in accordance with this subsection shall not revert to the 9 account or fund from which appropriated or transferred. 10 4. Any contract entered into by the department of education 11 relating to the provisions of this chapter in effect at the 12 conclusion of the fiscal year beginning July 1, 2012, shall 13 continue in full force and effect pending transfer of such 14 contracts to the boards of directors of the community colleges. 15 5. Any rule, regulation, form, order, or directive 16 promulgated by the department of education relative to the 17 provisions of this chapter in existence at the conclusion of 18 the fiscal year beginning July 1, 2012, shall continue in full 19 force and effect. 20 Sec. 38. Section 260E.7, subsection 1, Code Supplement 21 2011, is amended to read as follows: 22 1. The economic development authority, in consultation with 23 the department of education, the department of revenue , and 24 the department of workforce development, shall coordinate and 25 review the new jobs training program. The economic development 26 authority shall adopt, amend, and repeal rules under chapter 27 17A that the community college will use in developing projects 28 with new and expanding industrial new jobs training proposals 29 and that the economic development authority shall use to review 30 and report on the new jobs training program as required in this 31 section . 32 Sec. 39. Section 260F.6B, Code Supplement 2011, is amended 33 to read as follows: 34 260F.6B High technology apprenticeship program. 35 -15- LSB 5749XS (19) 84 md/sc 15/ 54

S.F. 2241 The community colleges and the economic development 1 authority are authorized to fund high technology apprenticeship 2 programs which comply with the requirements specified in 3 section 260C.44 and which may include both new and statewide 4 apprenticeship programs. Notwithstanding the provisions 5 of section 260F.6, subsection 2 , relating to maximum award 6 amounts, moneys allocated to the community colleges with high 7 technology apprenticeship programs shall be distributed to the 8 community colleges based upon contact hours under the programs 9 administered during the prior fiscal year as determined by the 10 department of education economic development authority . The 11 economic development authority shall adopt rules governing this 12 section ’s operation and participant eligibility. 13 Sec. 40. Section 260F.7, Code Supplement 2011, is amended 14 to read as follows: 15 260F.7 Economic development authority to coordinate. 16 The economic development authority, in consultation with 17 the department of education and the department of workforce 18 development, shall coordinate the jobs training program. A 19 project shall not be funded under this chapter unless the 20 economic development authority approves the project. The 21 authority shall adopt rules pursuant to chapter 17A governing 22 the program’s operation and eligibility for participation in 23 the program. The authority shall establish by rule criteria 24 for determining what constitutes an eligible business. 25 Sec. 41. Section 260H.2, Code Supplement 2011, is amended 26 to read as follows: 27 260H.2 Pathways for academic career and employment program. 28 A pathways for academic career and employment program is 29 established to provide funding to community colleges for the 30 development of projects in coordination with the economic 31 development authority, the department of education, Iowa 32 workforce development, regional advisory boards established 33 pursuant to section 84A.4 , and community partners to implement 34 a simplified, streamlined, and comprehensive process, 35 -16- LSB 5749XS (19) 84 md/sc 16/ 54

S.F. 2241 along with customized support services, to enable eligible 1 participants to acquire effective academic and employment 2 training to secure gainful, quality, in-state employment. 3 Sec. 42. Section 260H.8, Code Supplement 2011, is amended 4 to read as follows: 5 260H.8 Rules. 6 The department of education economic development authority , 7 in consultation with the community colleges , the economic 8 development authority, and Iowa the department of workforce 9 development, shall adopt rules pursuant to chapter 17A and this 10 chapter to implement the provisions of this chapter . Regional 11 advisory boards established pursuant to section 84A.4 shall be 12 consulted in the development and implementation of rules to be 13 adopted pursuant to this chapter . 14 Sec. 43. Section 260I.3, subsection 1, Code Supplement 15 2011, is amended to read as follows: 16 1. The department of education, in consultation with the 17 economic development authority , shall adopt rules pursuant to 18 this chapter defining eligibility criteria for persons applying 19 to receive tuition assistance under this chapter . 20 Sec. 44. Section 260I.10, Code Supplement 2011, is amended 21 to read as follows: 22 260I.10 Oversight. 23 1. The department of education economic development 24 authority , in coordination with the community colleges, shall 25 establish a steering committee. The steering committee shall 26 determine if the performance measures of the gap tuition 27 assistance program are being met and shall take necessary steps 28 to correct any deficiencies. The steering committee shall meet 29 at least quarterly to evaluate and monitor the performance of 30 the gap tuition assistance program. 31 2. The department of education economic development 32 authority , in coordination with the community colleges, 33 shall develop a common intake tracking system that shall be 34 implemented consistently by each participating community 35 -17- LSB 5749XS (19) 84 md/sc 17/ 54

S.F. 2241 college. 1 3. The department of education economic development 2 authority shall coordinate statewide oversight, evaluation, and 3 reporting efforts for the gap tuition assistance program. 4 Sec. 45. Section 260I.11, Code Supplement 2011, is amended 5 to read as follows: 6 260I.11 Rules. 7 The department of education economic development authority , 8 in consultation with the economic development authority and the 9 community colleges, shall adopt rules pursuant to chapter 17A 10 and this chapter to implement the provisions of this chapter . 11 Sec. 46. Section 261.1, subsection 2, paragraph b, Code 12 2011, is amended by striking the paragraph. 13 Sec. 47. NEW SECTION . 261.8 Transfer of authority and 14 duties. 15 1. Beginning July 1, 2013, the authority and duties of the 16 department of education, the state board of education, and the 17 director of the department of education under this chapter 18 shall be transferred to the college student aid commission. 19 Accordingly, beginning July 1, 2013, all references to the 20 department of education or the director of the department of 21 education under this chapter and references to the department 22 of education or the director of the department of education 23 under other provisions of law relating to this chapter shall 24 mean the college student aid commission. 25 2. Any moneys remaining in any account or fund under the 26 control of the department of education at the conclusion 27 of the fiscal year beginning July 1, 2012, relative to the 28 provisions of this chapter shall be transferred to the control 29 of the college student aid commission for such purposes. 30 Notwithstanding section 8.33, the moneys transferred in 31 accordance with this subsection shall not revert to the account 32 or fund from which appropriated or transferred. 33 3. Any contract entered into by the department of education 34 relating to the provisions of this chapter in effect at the 35 -18- LSB 5749XS (19) 84 md/sc 18/ 54

S.F. 2241 conclusion of the fiscal year beginning July 1, 2012, shall 1 continue in full force and effect pending transfer of such 2 contracts to the college student aid commission. 3 4. Any rule, regulation, form, order, or directive 4 promulgated by the department of education relative to the 5 provisions of this chapter in existence at the conclusion of 6 the fiscal year beginning July 1, 2012, shall continue in full 7 force and effect until amended, repealed, or supplemented by 8 affirmative action of the college student aid commission under 9 the duties and powers established in this chapter and under the 10 procedure established in subsection 5. 11 5. In regard to updating references and format in the Iowa 12 administrative code in order to correspond to the transferring 13 of duties of this chapter, the administrative rules coordinator 14 and the administrative rules review committee, in consultation 15 with the administrative code editor, shall jointly develop a 16 schedule for the necessary updating of the Iowa administrative 17 code. 18 Sec. 48. Section 261B.3A, subsection 2, Code 2011, is 19 amended to read as follows: 20 2. A practitioner preparation program operated by a school 21 that applies to register the program in accordance with this 22 chapter shall, in order to register, be accredited by an agency 23 or organization approved or recognized by the United States 24 department of education or a successor agency, be approved 25 by the state board of education pursuant to section 256.7, 26 subsection 3 , and, subsequently, be approved for operation by 27 the commission. 28 Sec. 49. NEW SECTION . 261E.1A Transfer of authority and 29 duties. 30 1. Beginning July 1, 2013, the authority and duties of 31 the department of education, the state board of education, 32 and the director of the department of education under this 33 chapter shall be transferred to the state board of regents. 34 Accordingly, beginning July 1, 2013, all references to the 35 -19- LSB 5749XS (19) 84 md/sc 19/ 54