Senate File 467 - Introduced SENATE FILE 467 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 1108) A BILL FOR An Act relating to the duties and operations of the department 1 of education, the school budget review committee, and 2 local school boards and to student eligibility under the 3 senior year plus program, and including effective date and 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1327SV (2) 84 kh/sc

S.F. 467 Section 1. Section 256.5A, Code 2011, is amended to read as 1 follows: 2 256.5A Nonvoting member. 3 1. The governor shall appoint the one nonvoting student 4 member of the state board for a term of one year two years 5 beginning and ending as provided in section 69.19 . The 6 nonvoting student member shall be appointed from a list of 7 names submitted by the state board of education. Students 8 enrolled in either grade ten or eleven in a public school 9 may apply to the state board to serve as a nonvoting student 10 member. 11 2. The department shall develop an application process that 12 requires the consent of the student’s parent or guardian if 13 the student is a minor, initial application approval by the 14 school district in which the student applicant is enrolled, and 15 submission of approved applications by a school district to the 16 department. 17 3. The nonvoting student member’s school district of 18 enrollment shall notify the student’s parents if the student’s 19 grade point average falls during the period in which the 20 student is a member of the state board. 21 4. The state board shall adopt rules under chapter 17A 22 specifying criteria for the selection of applicants whose names 23 shall be submitted to the governor. Criteria shall include , 24 but are not limited to , academic excellence, participation 25 in extracurricular and community activities, and interest in 26 serving on the board. Rules adopted by the state board shall 27 also require, if the student is a minor, supervision of the 28 student by the student’s parent or guardian while the student 29 is engaged in authorized state board business at a location 30 other than the community in which the student resides, unless 31 the student’s parent or guardian submits to the state board a 32 signed release indicating the parent or guardian has determined 33 that supervision of the student by the parent or guardian is 34 unnecessary. 35 -1- LSB 1327SV (2) 84 kh/sc 1/ 25

S.F. 467 5. The nonvoting student member appointment is not subject 1 to section 69.16 or 69.16A . 2 6. The nonvoting student member shall have been enrolled 3 in a public school in Iowa for at least one year prior to the 4 member’s appointment. A nonvoting student member who will not 5 graduate from high school prior to the end of a second term may 6 apply to the state board for submission of candidacy to the 7 governor for a second one-year term. 8 7. A nonvoting student member shall be paid a per diem as 9 provided in section 7E.6 and the student and the student’s 10 parent or guardian shall be reimbursed for actual and necessary 11 expenses incurred in the performance of the student’s duties as 12 a nonvoting member of the state board. 13 8. A vacancy in the membership of the nonvoting student 14 member shall not be filled until the expiration of the term. 15 Sec. 2. Section 256.9, subsections 26 and 27, Code 2011, are 16 amended by striking the subsections. 17 Sec. 3. Section 256.9, subsection 53, paragraph a, Code 18 2011, is amended to read as follows: 19 a. Develop and distribute, in collaboration with the area 20 education agencies, core curriculum technical assistance 21 and implementation strategies that school districts and 22 accredited nonpublic schools shall utilize, including but 23 not limited to the development and delivery of formative and 24 end-of-course model end-of-course and additional assessments 25 classroom teachers may use to measure student progress 26 on the core curriculum adopted pursuant to section 256.7, 27 subsection 26 . The department shall, in collaboration with the 28 advisory group convened in accordance with paragraph “b” and 29 educational assessment providers, identify and make available 30 to school districts model end-of-course and additional model 31 end-of-course and additional assessments to align with the 32 expectations included in the Iowa core curriculum. The model 33 assessments shall be suitable to meet the multiple assessment 34 measures requirement specified in section 256.7, subsection 21 , 35 -2- LSB 1327SV (2) 84 kh/sc 2/ 25

S.F. 467 paragraph “c” . 1 Sec. 4. Section 256.10, subsection 2, Code 2011, is amended 2 to read as follows: 3 2. Appointments to the professional staff of the department 4 shall be without reference to political party affiliation, 5 religious affiliation, sex, or marital status, but shall be 6 based solely upon fitness, ability, and proper qualifications 7 for the particular position. The professional staff shall 8 serve at the discretion of the director. A member of the 9 professional staff shall not be dismissed for cause without 10 appropriate due process procedures including a hearing an 11 opportunity to meet with the director . 12 Sec. 5. Section 256.30, Code 2011, is amended to read as 13 follows: 14 256.30 Educational expenses for American Indians. 15 1. The department of education shall provide moneys to pay 16 the expense of educating American Indian children residing in 17 the Sac and Fox Indian settlement on land held in trust by 18 the secretary of the interior of the United States in excess 19 of federal moneys paid to the tribal council for educating 20 the American Indian children when moneys are appropriated for 21 that purpose. The tribal council shall administer the moneys 22 distributed to it by the department and shall submit an annual 23 report and other reports as required by the department to the 24 department on the expenditure of the moneys. 25 2. The tribal council shall administer moneys distributed 26 to it by the department of education as provided in subsection 27 1. The tribal council shall first use the moneys distributed 28 to it by the department of education for the purposes of this 29 section to pay the additional costs of salaries for licensed 30 instructional staff for educational attainment and full-time 31 equivalent years of experience to equal the salaries listed on 32 the proposed salary schedule for the school at the Sac and Fox 33 Indian settlement for that school year, but the salary for a 34 licensed instructional staff member employed on a full-time 35 -3- LSB 1327SV (2) 84 kh/sc 3/ 25

S.F. 467 basis shall not be less than eighteen thousand dollars. 1 3. The department of management shall approve allotments 2 of moneys appropriated in for purposes of this section when 3 the department of education certifies to the department of 4 management that the requirements of this section have been met . 5 Sec. 6. Section 257.6, subsection 1, paragraph a, 6 subparagraph (3), Code 2011, is amended to read as follows: 7 (3) Shared-time and part-time pupils of school age enrolled 8 in public schools within the district, irrespective of the 9 districts in which the pupils reside, in the proportion that 10 the time for which they are enrolled or receive instruction for 11 the school year is to the time that full-time pupils carrying 12 a normal course schedule, at the same grade level, in the 13 same school district, for the same school year, are enrolled 14 and receive instruction. Tuition charges to the parent or 15 guardian of a shared-time or part-time nonresident pupil shall 16 be reduced by the amount of any increased state aid received by 17 the district by the counting of the pupil. This subparagraph 18 applies to pupils enrolled in grades nine through twelve under 19 section 299A.8 and to pupils from accredited nonpublic schools 20 accessing classes or services on the accredited nonpublic 21 school premises or the school district site, but excludes 22 accredited nonpublic school pupils receiving classes or 23 services funded by federal grants or allocations. 24 Sec. 7. Section 257.30, subsection 1, Code 2011, is amended 25 to read as follows: 26 1. A school budget review committee is established in the 27 department of education and consists of the director of the 28 department of education in an ex officio, nonvoting capacity, 29 the director of the department of management, and four members 30 who are knowledgeable in the areas of Iowa school finance or 31 public finance issues appointed by the governor to represent 32 the public. At least one of the public members shall possess a 33 master’s or doctoral degree in which areas of school finance, 34 economics, or statistics are an integral component, or shall 35 -4- LSB 1327SV (2) 84 kh/sc 4/ 25

S.F. 467 have equivalent experience in an executive administrative 1 or senior research position in the education or public 2 administration field. The members appointed by the governor 3 shall serve staggered three-year four-year terms beginning 4 and ending as provided in section 69.19 and are subject to 5 senate confirmation as provided in section 2.32 . The committee 6 shall meet and hold hearings each year and shall continue in 7 session until it has reviewed budgets of school districts, as 8 provided in section 257.31 . The committee may call in school 9 board members and employees as necessary for the hearings. 10 The committee’s scheduled hearing agendas and the minutes of 11 such hearings shall be posted on the department of education’s 12 internet site. Legislators shall be notified of hearings 13 concerning school districts in their legislative districts. 14 Sec. 8. Section 257.31, subsection 2, Code 2011, is amended 15 to read as follows: 16 2. The committee shall specify the number of hearings held 17 annually, the reasons for the committee’s recommendations, a 18 summary of decisions, information about the amounts of property 19 tax levied by school districts for a cash reserve, and other 20 information the committee deems advisable on the department of 21 education’s internet website site . 22 Sec. 9. Section 257.37, subsection 4, Code 2011, is amended 23 to read as follows: 24 4. “Enrollment served” means the basic enrollment plus the 25 number of nonpublic school pupils served with media services 26 or educational services, as applicable, except that if a 27 nonpublic school pupil or a pupil attending another district 28 under a whole grade sharing agreement or open enrollment 29 receives services through an area other than the area of the 30 pupil’s residence, the pupil shall be deemed to be served by 31 the area of the pupil’s residence, which shall by contractual 32 arrangement reimburse the area through which the pupil actually 33 receives services. Each school district shall include in 34 the enrollment report submitted pursuant to section 257.6, 35 -5- LSB 1327SV (2) 84 kh/sc 5/ 25

S.F. 467 subsection 1 , the number of nonpublic school pupils within each 1 school district for media and educational services served by 2 the area. However, the school district shall not include in 3 the enrollment report nonpublic school pupils receiving classes 4 or services funded by federal grants or allocations. 5 Sec. 10. Section 257.40, subsection 1, Code 2011, is amended 6 to read as follows: 7 1. The board of directors of a school district requesting 8 to use modified allowable growth for programs for returning 9 dropouts and dropout prevention shall submit requests for 10 modified at-risk allowable growth, including budget costs, 11 to the department of education not later than December 15 of 12 the year preceding the budget year during which the program 13 will be offered. The department shall review the request 14 and shall prior to January 15 either grant approval for the 15 request for the program or return the request for approval to 16 the school district with comments of the department included. 17 An unapproved request for a program may be resubmitted with 18 modifications to the department not later than February 1. 19 Not later than February 15, the department shall notify the 20 department of management and the school budget review committee 21 of the names of the school districts for which programs using 22 modified allowable growth for funding have been approved and 23 the approved budget of each program listed separately for each 24 school district having an approved request. 25 Sec. 11. Section 257.41, Code 2011, is amended to read as 26 follows: 27 257.41 Funding for programs for returning dropouts and 28 dropout prevention. 29 The budget of an approved program for returning dropouts and 30 dropout prevention for a school district, after subtracting 31 funds received from other sources for that purpose, shall be 32 funded annually on a basis of one-fourth or more from the 33 district cost of the school district and up to three-fourths 34 by an increase in allowable growth as defined in section 35 -6- LSB 1327SV (2) 84 kh/sc 6/ 25

S.F. 467 257.8 . Annually, the department of management school budget 1 review committee shall establish a modified allowable growth 2 for each such school district equal to the difference between 3 the approved budget for the program for returning dropouts and 4 dropout prevention for that district and the sum of the amount 5 funded from the district cost of the school district plus funds 6 received from other sources. 7 Sec. 12. Section 259A.1, Code 2011, is amended to read as 8 follows: 9 259A.1 Tests. 10 The department of education shall cause to be made 11 available for qualified individuals a high school equivalency 12 diploma. The diploma shall be issued on the basis of 13 satisfactory competence as shown by tests covering all of the 14 following: reading, arts, language arts, writing language 15 arts-reading, language arts-writing , mathematics, science, and 16 social studies. 17 Sec. 13. Section 261E.3, subsection 1, paragraph e, Code 18 2011, is amended to read as follows: 19 e. The student shall have demonstrated proficiency in 20 reading, mathematics, and science as evidenced by achievement 21 scores on the latest administration of the state assessment for 22 which scores are available and as defined by the department. 23 However, a student receiving competent private instruction 24 under chapter 299A may demonstrate proficiency as evidenced 25 by a selection index, which is the sum of the critical 26 reading, mathematics, and writing skills assessments, of one 27 hundred forty-one on the preliminary scholastic aptitude 28 test administered by the college board; a composite score 29 of at least twenty-one on the college readiness assessment 30 administered by ACT, inc.; or a sum of the critical reading 31 and mathematics scores of at least nine hundred ninety on the 32 college readiness assessment administered by the college board. 33 If a student is not proficient in one or more of the content 34 areas listed in this paragraph , has not taken the college 35 -7- LSB 1327SV (2) 84 kh/sc 7/ 25

S.F. 467 readiness assessments identified in this paragraph, or has not 1 achieved the scores specified in this paragraph , the school 2 board may establish alternative but equivalent qualifying 3 performance measures including but not limited to additional 4 administrations of the state assessment, portfolios of student 5 work, student performance rubric, or end-of-course assessments. 6 Sec. 14. Section 273.3, subsection 12, Code 2011, is amended 7 to read as follows: 8 12. Prepare an annual budget estimating income and 9 expenditures for programs and services as provided in sections 10 273.1 to 273.9 and chapter 256B within the limits of funds 11 provided under section 256B.9 and chapter 257 . The board 12 shall give notice of a public hearing on the proposed budget 13 by publication in an official county newspaper in each county 14 in the territory of the area education agency in which the 15 principal place of business of a school district that is a part 16 of the area education agency is located. The notice shall 17 specify the date, which shall be not later than March 1 of 18 each year, the time, and the location of the public hearing. 19 The proposed budget as approved by the board shall then be 20 submitted to the state board of education, on forms provided 21 by the department, no later than March 15 preceding the 22 next fiscal year for approval. The state board shall review 23 the proposed budget of each area education agency and shall 24 before April May 1, either grant approval or return the budget 25 without approval with comments of the state board included. An 26 unapproved budget shall be resubmitted to the state board for 27 final approval not later than April May 15. For the fiscal 28 year beginning July 1, 1999, and each succeeding fiscal year, 29 the The state board shall give final approval only to budgets 30 submitted by area education agencies accredited by the state 31 board or that have been given conditional accreditation by the 32 state board. 33 Sec. 15. Section 273.23, subsection 5, Code 2011, is amended 34 to read as follows: 35 -8- LSB 1327SV (2) 84 kh/sc 8/ 25

S.F. 467 5. The initial board, or new board if established in time 1 under subsection 3 , of the newly formed agency shall prepare an 2 annual budget estimating income and expenditures for programs 3 and services as provided in sections 273.1 through 273.9 4 and chapter 256B within the limits of funds provided under 5 section 256B.9 and chapter 257 . The board shall give notice 6 of a public hearing on the proposed budget by publication in 7 an official county newspaper in each county in the territory 8 of the area education agency in which the principal place 9 of business of a school district that is a part of the area 10 education agency is located. The notice shall specify the 11 date, which shall not be later than March 1, the time, and 12 the location of the public hearing. The proposed budget as 13 approved by the board shall be submitted to the state board, 14 on forms provided by the department, no later than March 15 15 for approval. The state board shall review the proposed 16 budget of the newly formed area education agency and shall, 17 before April May 1, either grant approval or return the budget 18 without approval with comments of the state board included. An 19 unapproved budget shall be resubmitted to the state board for 20 final approval not later than April May 15. The state board 21 shall give final approval only to budgets submitted by area 22 education agencies accredited by the state board or that have 23 been given conditional accreditation by the state board. 24 Sec. 16. Section 275.23A, subsection 2, Code 2011, is 25 amended to read as follows: 26 2. Following each federal decennial census the school 27 board shall determine whether the existing director district 28 boundaries meet the standards in subsection 1 according to the 29 most recent federal decennial census. 30 a. In addition to the authority granted to voters to change 31 the number of directors or method of election as provided in 32 sections 275.35 , 275.36 , and 278.1 , the board of directors of 33 a school district may, following a federal decennial census, 34 by resolution and in accordance with this section , authorize 35 -9- LSB 1327SV (2) 84 kh/sc 9/ 25

S.F. 467 a change in the method of election as set forth in section 1 275.12, subsection 2 , or a change to either five or seven 2 directors after the board conducts a hearing on the resolution. 3 (1) If the board proposes to change the number of directors 4 from seven to five directors, the resolution shall include a 5 plan for reducing the number of directors. 6 (2) If the board proposes to increase the number of 7 directors to seven directors, two directors shall be added 8 according to the procedure described in section 277.23, 9 subsection 2 . 10 b. If necessary, the board of directors shall redraw 11 the director district boundaries. The director district 12 boundaries shall be described in the resolution adopted by 13 the school board. The resolution shall be adopted no earlier 14 than November 15 of the second year immediately following the 15 year in which the federal decennial census is taken nor later 16 than May 15 of the second third year immediately following 17 the year in which the federal decennial census is taken. 18 A copy of the plan shall be filed with the area education 19 agency administrator of the area education agency in which the 20 school’s electors reside. If the board does not provide for 21 an election as provided in sections 275.35 , 275.36 , and 278.1 22 and adopts a resolution to change the number of directors or 23 method of election in accordance with this subsection , the 24 district shall change the number of directors or method of 25 election as provided unless, within twenty-eight days following 26 the action of the board, the secretary of the board receives a 27 petition containing the required number of signatures, asking 28 that an election be called to approve or disapprove the action 29 of the board in adopting the resolution. The petition must be 30 signed by eligible electors equal in number to not less than 31 one hundred or thirty percent of the number of voters at the 32 last preceding regular school election, whichever is greater. 33 The board shall either rescind its action or direct the 34 county commissioner of elections to submit the question to the 35 -10- LSB 1327SV (2) 84 kh/sc 10/ 25

S.F. 467 registered voters of the school district at an election held 1 on a date specified in section 39.2, subsection 4 , paragraph 2 “c” . If a majority of those voting on the question at the 3 election favors disapproval of the action of the board, the 4 district shall not change the number of directors or method of 5 election. If a majority of those voting on the question does 6 not favor disapproval of the action, the board shall certify 7 the results of the election to the department of management and 8 the district shall change the number of directors or method of 9 election as provided in this subsection . At the expiration of 10 the twenty-eight-day period, if no petition is filed, the board 11 shall certify its action to the department of management and 12 the district shall change the number of directors or method of 13 election as provided in this subsection . 14 Sec. 17. Section 278.1, subsection 1, paragraph e, Code 15 2011, is amended to read as follows: 16 e. Direct the transfer of any surplus in the debt service 17 fund, physical plant and equipment levy fund , or other capital 18 projects funds, or public education and recreation levy fund to 19 the general fund. 20 Sec. 18. Section 279.30, Code 2011, is amended to read as 21 follows: 22 279.30 Exceptions. 23 Each payment must be made payable to the person entitled to 24 receive the money or deposited directly into an account at a 25 financial institution, as defined in section 527.2, specified 26 by the person entitled to receive the money . The board of 27 directors of a school district or an area education agency may 28 by resolution authorize the secretary, upon approval of the 29 superintendent or designee, or administrator, in the case of 30 an area education agency, to issue payments when the board 31 of directors is not in session in payment of reasonable and 32 necessary expenses, but only upon verified bills filed with the 33 secretary or administrator, and for the payment of salaries 34 pursuant to the terms of a written contract. Each payment 35 -11- LSB 1327SV (2) 84 kh/sc 11/ 25

S.F. 467 must be made payable only to the person performing the service 1 or presenting the verified bill, and must state the purpose 2 for which the payment is issued. All bills and salaries for 3 which payments are issued prior to audit and allowance by the 4 board must be passed upon by the board of directors at the next 5 meeting and be entered in the regular minutes of the secretary. 6 Sec. 19. Section 279.42, Code 2011, is amended to read as 7 follows: 8 279.42 Gifts to schools. 9 The board of directors of a school district which that 10 receives funds through gifts, devises, and bequests a gift, 11 devise, or bequest shall deposit these the funds in a trust 12 and , permanent, or agency fund and shall use them the funds in 13 accordance with the terms of the gift, devise, or bequest. 14 Sec. 20. Section 279.45, Code 2011, is amended to read as 15 follows: 16 279.45 Administrative expenditures. 17 For the budget year beginning July 1, 1989, and each of 18 the following three budget years, the board of directors of a 19 school district in which the The administrative expenditures 20 as a percent of the a school district’s operating general fund 21 for a base year shall not exceed five percent , shall reduce its 22 administrative expenditures so that they are one-half percent 23 less as a percent of the school district’s operating fund than 24 they were for the base year . However, a school district is 25 not required to reduce its administrative expenditures below 26 five percent of its operating fund. Thereafter, a school 27 district shall not increase the percent of its administrative 28 expenditures compared to its operating fund. Annually, 29 the board of directors shall certify to the department of 30 education the amounts of the school district’s administrative 31 expenditures and its operating general fund. For the purposes 32 of this section , “base year” and “budget year” mean means 33 the same as defined in section 442.6 , Code 1989, and section 34 257.2 , and “administrative expenditures” means expenditures for 35 -12- LSB 1327SV (2) 84 kh/sc 12/ 25

S.F. 467 executive administration. 1 Sec. 21. Section 282.9, subsection 1, Code 2011, is amended 2 to read as follows: 3 1. Notwithstanding this chapter and sections 275.55A , and 4 256F.4 , and 282.18 , or any other provision to the contrary, 5 prior to knowingly enrolling an individual who is required 6 to register as a sex offender under chapter 692A , but who is 7 otherwise eligible to enroll in a public school, the board of 8 directors of a school district shall determine the educational 9 placement of the individual. Upon receipt of notice that a 10 student who is enrolled in the district is required to register 11 as a sex offender under chapter 692A , the board shall determine 12 the educational placement of the student. The tentative agenda 13 for the meeting of the board of directors at which the board 14 will consider such enrollment or educational placement shall 15 specifically state that the board is considering the enrollment 16 or educational placement of an individual who is required 17 to register as a sex offender under chapter 692A . If the 18 individual is denied enrollment in a school district under this 19 section , the school district of residence shall provide the 20 individual with educational services in an alternative setting. 21 Sec. 22. Section 282.10, subsection 4, Code 2011, is amended 22 to read as follows: 23 4. A whole grade sharing agreement shall be signed by the 24 boards of the districts involved in the agreement not later 25 than February 1 of the school year preceding the school year 26 for which the agreement is to take effect. The boards of 27 the districts shall negotiate as part of the new or existing 28 agreement the disposition of teacher quality funding provided 29 under chapter 284 . 30 Sec. 23. Section 282.18, subsection 4, Code 2011, is amended 31 by adding the following new paragraph: 32 NEW PARAGRAPH . 0c. If a request for transfer is submitted 33 to the receiving district after March 1 of the preceding 34 school year on behalf of a pupil whose sibling is already 35 -13- LSB 1327SV (2) 84 kh/sc 13/ 25

S.F. 467 participating in open enrollment, the receiving district shall 1 take action to approve the request. 2 Sec. 24. Section 282.18, subsection 5, Code 2011, is amended 3 to read as follows: 4 5. Open enrollment applications filed after March 1 of 5 the preceding school year that do not qualify for good cause 6 approval as provided in subsection 4 shall be subject to the 7 approval of the board of the resident district and the board 8 of the receiving district. The parent or guardian shall send 9 notification to the district of residence and the receiving 10 district that the parent or guardian seeks to enroll the 11 parent’s or guardian’s child in the receiving district. A 12 decision of either board to deny an application filed under 13 this subsection involving repeated acts of harassment of the 14 student or serious health condition of the student that the 15 resident district cannot adequately address is subject to 16 appeal under section 290.1 . The state board shall exercise 17 broad discretion to achieve just and equitable results that are 18 in the best interest of the affected child or children. 19 Sec. 25. Section 284.10, subsection 2, Code 2011, is amended 20 to read as follows: 21 2. An administrator licensed under chapter 272 who conducts 22 evaluations of teachers for purposes of this chapter shall 23 complete the evaluator training program. A practitioner 24 licensed under chapter 272 who is not an administrator 25 may enroll in the evaluator training program. Enrollment 26 preference shall be given to administrators and to other 27 practitioners who are not beginning teachers . Upon successful 28 completion, the provider shall certify that the administrator 29 or other practitioner is qualified to conduct evaluations 30 for employment, make recommendations for licensure, and make 31 recommendations that a teacher is qualified to advance from one 32 career path level to the next career path level pursuant to 33 this chapter . Certification is for a period of five years and 34 may be renewed. 35 -14- LSB 1327SV (2) 84 kh/sc 14/ 25

S.F. 467 Sec. 26. Section 291.1, Code 2011, is amended to read as 1 follows: 2 291.1 President —— duties. 3 The president of the board of directors shall preside at 4 all of its meetings, sign all contracts made by the board, and 5 appear in on behalf of the corporation in all actions brought 6 by or against it, unless individually a party, in which case 7 this duty shall be performed by the secretary. The president 8 or the president’s designee shall sign, using an original or 9 facsimile signature, all school district warrants payments 10 drawn and authorize electronic funds transfers as provided by 11 law. The board of directors, by resolution, may designate an 12 individual, who shall not be the secretary, to sign warrants 13 payments or authorize electronic funds transfers on behalf of 14 the president. 15 Sec. 27. Section 291.6, subsection 3, Code 2011, is amended 16 by striking the subsection and inserting in lieu thereof the 17 following: 18 3. Accounting records. Keep an accurate accounting record 19 of each payment or electronic funds transfer from each fund 20 which shall be provided monthly to the board of directors. The 21 secretary of the creditor district shall prepare and deliver to 22 debtor districts an itemized statement of tuition fees charged 23 in accordance with sections 275.55A and 282.11 , and section 24 282.24, subsection 1 . 25 Sec. 28. Section 291.6, subsection 4, Code 2011, is amended 26 to read as follows: 27 4. Claims. Keep an accurate account accounting of all 28 expenses incurred by the corporation, and present the same to 29 the board for audit and payment. 30 Sec. 29. Section 291.7, Code 2011, is amended to read as 31 follows: 32 291.7 Monthly receipts, disbursements, and balances. 33 The secretary of each district shall file monthly with the 34 board of directors a complete statement of all receipts and 35 -15- LSB 1327SV (2) 84 kh/sc 15/ 25

S.F. 467 disbursements from the various funds each individual fund 1 during the preceding month, and also the balance remaining on 2 hand in the various funds each individual fund at the close of 3 the period covered by the statement, which monthly statements 4 shall be open to public inspection. 5 Sec. 30. Section 291.8, Code 2011, is amended by striking 6 the section and inserting in lieu thereof the following: 7 291.8 Payments. 8 The secretary shall make each authorized payment, 9 countersign using an original or facsimile signature, and 10 maintain accounting records of the payments or electronic funds 11 transfers, showing the number, date, payee, originating fund, 12 the purpose, and the amount, and shall provide to the board at 13 each regular annual meeting a copy of the accounting records 14 maintained by the secretary. 15 Sec. 31. Section 291.12, Code 2011, is amended to read as 16 follows: 17 291.12 Duties of treasurer —— payment of warrants payments . 18 The treasurer shall receive all moneys belonging to the 19 corporation, pay the same out only upon the order of the 20 president countersigned by the secretary, keeping and shall 21 keep an accurate account accounting record of all receipts 22 and expenditures in a book provided for that purpose . The 23 treasurer shall register all orders drawn payments and 24 electronic funds transfers made and reported to the treasurer 25 by the secretary, showing the number, date, to whom drawn, the 26 fund upon from which drawn each payment and transfer was made , 27 the purpose and amount. 28 Sec. 32. Section 291.14, Code 2011, is amended to read as 29 follows: 30 291.14 Financial statement. 31 The treasurer shall render a statement of the finances of the 32 corporation whenever required by the board, and the treasurer’s 33 books accounting records shall always be open for inspection. 34 Sec. 33. Section 298.2, subsection 5, paragraph a, Code 35 -16- LSB 1327SV (2) 84 kh/sc 16/ 25

S.F. 467 2011, is amended to read as follows: 1 a. The proposition to levy the voter-approved physical 2 plant and equipment levy is not affected by a change in 3 the boundaries of the school district, except as otherwise 4 provided in this section . If each school district involved 5 in a school reorganization under chapter 275 has adopted 6 the voter-approved physical plant and equipment levy or the 7 sixty-seven and one-half cents per thousand dollars of assessed 8 value schoolhouse levy under section 278.1, subsection 7, 9 Code 1989, prior to July 1, 1991 , and if the voters have not 10 voted upon the proposition to levy the voter-approved physical 11 plant and equipment levy in the reorganized district, the 12 existing voter-approved physical plant and equipment levy or 13 the existing schoolhouse levy, as applicable, is in effect for 14 the reorganized district for the least amount and the shortest 15 time for which it is in effect in any of the districts. 16 Sec. 34. Section 298.2, subsection 6, Code 2011, is amended 17 by striking the subsection. 18 Sec. 35. Section 298.3, subsection 1, paragraph c, Code 19 2011, is amended to read as follows: 20 c. The purchase, lease, or lease-purchase of a single unit 21 of equipment or technology exceeding five hundred dollars in 22 value per unit purchase, lease, or lease-purchase transaction . 23 Each transaction may include multiple equipment or technology 24 units. 25 Sec. 36. Section 298.3, subsection 1, Code 2011, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . n. The purchase, lease, or lease-purchase of 28 desks, furniture, or fixtures exceeding five hundred dollars in 29 value per purchase, lease, or lease-purchase transaction. Each 30 transaction may include multiple desk, furniture, or fixture 31 units. 32 Sec. 37. Section 298A.4, Code 2011, is amended to read as 33 follows: 34 298A.4 Physical plant and equipment levy fund. 35 -17- LSB 1327SV (2) 84 kh/sc 17/ 25

S.F. 467 The physical plant and equipment levy fund is a special 1 revenue capital projects fund. A physical plant and equipment 2 levy fund must be established in any school corporation which 3 levies the tax authorized, whether regular or voter-approved, 4 under section 298.2 . 5 Sec. 38. Section 298A.9, Code 2011, is amended to read as 6 follows: 7 298A.9 Capital project funds. 8 A capital project fund must be established in any school 9 corporation which issues bonds or other authorized indebtedness 10 for capital projects or which initiates a capital project, or 11 which receives grants or other funds for capital projects. 12 Boards are authorized to establish more than one capital 13 project fund as necessary. Any balance remaining in a capital 14 project fund after the capital project is completed may be 15 retained for future capital projects in accordance with the 16 original purpose of the bond issue or voter-approved levy; or 17 may be transferred, by board resolution, to the debt service 18 fund, to the physical plant and equipment levy fund or another 19 capital project fund , or other to the fund from which the 20 surplus originated; or transferred to the general fund in 21 accordance with section 278.1, subsection 1 , paragraph “e” . 22 Sec. 39. Section 298A.13, Code 2011, is amended to read as 23 follows: 24 298A.13 Trust , permanent, or agency funds. 25 Trust , permanent, or agency funds shall be established by 26 any school corporation to account for gifts it receives to 27 be used for a particular purpose or to account for money and 28 property received and administered by the district as trustee 29 or custodian or in the capacity of an agent. Boards may 30 establish trust and , permanent, or agency funds as necessary. 31 Sec. 40. Section 299A.11, Code 2011, is amended to read as 32 follows: 33 299A.11 Student records confidential. 34 Notwithstanding any provision of law or rule to the 35 -18- LSB 1327SV (2) 84 kh/sc 18/ 25