House File 454 - Introduced HOUSE FILE 454 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 89) A BILL FOR An Act relating to education by modifying the duties and 1 operations of the department of education, community 2 colleges, the school budget review committee, and local 3 school boards, eliminating a reporting requirement relating 4 to vocational education funds, and including applicability 5 provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1095HV (2) 85 kh/sc

H.F. 454 Section 1. Section 256.5A, Code 2013, is amended to read as 1 follows: 2 256.5A Nonvoting member. 3 1. a. The governor shall appoint the one nonvoting student 4 member of the state board for a term of one year beginning 5 and ending if the student is enrolled in grade eleven or for 6 a term of two years if the student is enrolled in grade ten. 7 The term shall begin and end as provided in section 69.19. 8 The nonvoting student member shall be appointed from a list 9 of names submitted by the state board of education. Students 10 enrolled in either grade ten or eleven in a public school 11 may apply to the state board to serve as a nonvoting student 12 member. 13 b. The department shall develop an application process that 14 requires the consent of the student’s parent or guardian if 15 the student is a minor, initial application approval by the 16 school district in which the student applicant is enrolled, and 17 submission of approved applications by a school district to the 18 department. 19 2. The nonvoting student member’s school district of 20 enrollment shall notify the student’s parents if the student’s 21 grade point average falls during the period in which the 22 student is a member of the state board. 23 3. The state board shall adopt rules under chapter 17A 24 specifying criteria for the selection of applicants whose names 25 shall be submitted to the governor. Criteria shall include , 26 but are not limited to , academic excellence, participation 27 in extracurricular and community activities, and interest in 28 serving on the board. Rules adopted by the state board shall 29 also require, if the student is a minor, supervision of the 30 student by the student’s parent or guardian while the student 31 is engaged in authorized state board business at a location 32 other than the community in which the student resides, unless 33 the student’s parent or guardian submits to the state board a 34 signed release indicating the parent or guardian has determined 35 -1- LSB 1095HV (2) 85 kh/sc 1/ 20

H.F. 454 that supervision of the student by the parent or guardian is 1 unnecessary. 2 4. The nonvoting student member appointment is not subject 3 to section 69.16 or 69.16A . 4 5. The nonvoting student member shall have been enrolled 5 in a public school in Iowa for at least one year prior to the 6 member’s appointment. A nonvoting student member who will not 7 graduate from high school prior to the end of a second term may 8 apply to the state board for submission of candidacy to the 9 governor for a second one-year term. 10 6. A nonvoting student member shall be paid a per diem as 11 provided in section 7E.6 and the student and the student’s 12 parent or guardian shall be reimbursed for actual and necessary 13 expenses incurred in the performance of the student’s duties as 14 a nonvoting member of the state board. 15 7. A vacancy in the membership of the nonvoting student 16 member shall not be filled until the expiration of the term. 17 Sec. 2. Section 256.30, Code 2013, is amended to read as 18 follows: 19 256.30 Educational expenses for American Indians. 20 1. For the fiscal year beginning July 1, 2011, and ending 21 June 30, 2012, and for each succeeding fiscal year, there 22 is appropriated from the general fund of the state to the 23 department the sum of one hundred thousand dollars. The 24 department shall distribute the appropriation to the tribal 25 council of the Sac and Fox Indian settlement for expenses of 26 educating American Indian children residing in the Sac and Fox 27 Indian settlement on land held in trust by the secretary of 28 the interior of the United States in excess of federal moneys 29 paid to the tribal council for educating the American Indian 30 children when moneys are appropriated for that purpose . The 31 tribal council shall administer the moneys distributed pursuant 32 to this section and shall submit an annual report and other 33 reports as required by the department to the department on the 34 expenditure of the moneys. 35 -2- LSB 1095HV (2) 85 kh/sc 2/ 20

H.F. 454 2. The tribal council shall administer the moneys 1 distributed by the department pursuant to subsection 1 and 2 shall first use moneys distributed to it by the department 3 of education for the purposes of this section to pay the 4 additional costs of salaries for licensed instructional staff 5 for educational attainment and full-time equivalent years 6 of experience to equal the salaries listed on the proposed 7 salary schedule for the school at the Sac and Fox Indian 8 settlement for that school year, but the salary for a licensed 9 instructional staff member employed on a full-time basis shall 10 not be less than eighteen thousand dollars. The department of 11 management shall approve allotments of moneys appropriated in 12 and distributed pursuant to this section when the department of 13 education certifies to the department of management that the 14 requirements of this section have been met . 15 Sec. 3. Section 257.6, subsection 1, paragraph a, 16 subparagraph (3), Code 2013, is amended to read as follows: 17 (3) Shared-time and part-time pupils of school age enrolled 18 in public schools within the district, irrespective of the 19 districts in which the pupils reside, in the proportion that 20 the time for which they are enrolled or receive instruction for 21 the school year is to the time that full-time pupils carrying 22 a normal course schedule, at the same grade level, in the 23 same school district, for the same school year, are enrolled 24 and receive instruction. Tuition charges to the parent or 25 guardian of a shared-time or part-time nonresident pupil shall 26 be reduced by the amount of any increased state aid received by 27 the district by the counting of the pupil. This subparagraph 28 applies to pupils enrolled in grades nine through twelve under 29 section 299A.8 and to pupils from accredited nonpublic schools 30 accessing classes or services on the accredited nonpublic 31 school premises or the school district site, but excludes 32 accredited nonpublic school pupils receiving classes or 33 services funded entirely by federal grants or allocations. 34 Sec. 4. Section 257.11, subsection 3, paragraph c, Code 35 -3- LSB 1095HV (2) 85 kh/sc 3/ 20

H.F. 454 2013, is amended by striking the paragraph. 1 Sec. 5. Section 257.11, Code 2013, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 7A. District to community college 4 innovative sharing project. A school district that collaborates 5 with a community college to provide pupils enrolled in the 6 school district’s high school with a class that uses an 7 activities-based, project-based, and problem-based learning 8 approach that is offered through a partnership with a 9 nationally recognized provider of rigorous and innovative 10 science, technology, engineering, and mathematics curriculum 11 for schools, which provider is exempt from taxation under 12 section 501(c)(3) of the Internal Revenue Code, is eligible to 13 assign its resident pupils attending the class an additional 14 weighting of the percentage of the pupil’s school day during 15 which the pupil attends a class described in this subsection 16 times seventy hundredths. To qualify for additional weighting, 17 the class must supplement, not supplant, high school courses 18 required to be offered pursuant to section 256.11, subsection 19 5. 20 Sec. 6. Section 257.37, subsection 4, Code 2013, is amended 21 to read as follows: 22 4. “Enrollment served” means the basic enrollment plus the 23 number of nonpublic school pupils served with media services 24 or educational services, as applicable, except that if a 25 nonpublic school pupil or a pupil attending another district 26 under a whole grade sharing agreement or open enrollment 27 receives services through an area other than the area of the 28 pupil’s residence, the pupil shall be deemed to be served by 29 the area of the pupil’s residence, which shall by contractual 30 arrangement reimburse the area through which the pupil actually 31 receives services. Each school district shall include in 32 the enrollment report submitted pursuant to section 257.6, 33 subsection 1 , the number of nonpublic school pupils within each 34 school district for media and educational services served by 35 -4- LSB 1095HV (2) 85 kh/sc 4/ 20

H.F. 454 the area. However, the school district shall not include in 1 the enrollment report nonpublic school pupils receiving classes 2 or services funded entirely by federal grants or allocations. 3 Sec. 7. Section 258.12, Code 2013, is amended to read as 4 follows: 5 258.12 Custodian of funds —— reports. 6 The treasurer of state shall be custodian of the funds 7 paid to the state from the appropriations made under said Act 8 of Congress, and shall disburse the same on vouchers audited 9 as provided by law. The treasurer of state shall report 10 the receipts and disbursements of said funds to the general 11 assembly at each biennial session. 12 Sec. 8. Section 259A.1, Code 2013, is amended to read as 13 follows: 14 259A.1 Tests. 15 The department of education shall cause to be made 16 available for qualified individuals a high school equivalency 17 diploma. The diploma shall be issued on the basis of 18 satisfactory competence as shown by tests covering all of the 19 following: reading, arts, language arts, writing literacy , 20 mathematics, science, and social studies. 21 Sec. 9. Section 259A.2, unnumbered paragraph 2, Code 2013, 22 is amended to read as follows: 23 Application shall be made to a testing center approved by the 24 department of education, accompanied by an application fee in 25 an amount prescribed by the department. The test scores shall 26 be forwarded by the testing center scorer of the test to the 27 department. 28 Sec. 10. Section 273.3, subsection 12, Code 2013, is amended 29 to read as follows: 30 12. Prepare an annual budget estimating income and 31 expenditures for programs and services as provided in sections 32 273.1 , 273.2 , this section , sections 273.4 to 273.9 , and 33 chapter 256B within the limits of funds provided under section 34 256B.9 and chapter 257 . The board shall give notice of a 35 -5- LSB 1095HV (2) 85 kh/sc 5/ 20

H.F. 454 public hearing on the proposed budget by publication in an 1 official county newspaper in each county in the territory 2 of the area education agency in which the principal place 3 of business of a school district that is a part of the area 4 education agency is located. The notice shall specify the 5 date, which shall be not later than March 1 of each year, the 6 time, and the location of the public hearing. The proposed 7 budget as approved by the board shall then be submitted to the 8 state board of education, on forms provided by the department, 9 no later than March 15 preceding the next fiscal year for 10 approval. The state board shall review the proposed budget of 11 each area education agency and shall before April May 1, either 12 grant approval or return the budget without approval with 13 comments of the state board included. An unapproved budget 14 shall be resubmitted to the state board for final approval not 15 later than April May 15. For the fiscal year beginning July 16 1, 1999, and each succeeding fiscal year, the The state board 17 shall give final approval only to budgets submitted by area 18 education agencies accredited by the state board or that have 19 been given conditional accreditation by the state board. 20 Sec. 11. Section 273.13, Code 2013, is amended to read as 21 follows: 22 273.13 Administrative expenditures. 23 During the budget year beginning July 1, 1989, and the 24 three succeeding budget years, the board of directors of 25 an area education agency in which the The administrative 26 expenditures as a percent of the an area education agency’s 27 operating general fund for a base year shall not exceed five 28 percent shall reduce its administrative expenditures to five 29 percent of the area education agency’s operating fund . During 30 each of the four years, the board of directors shall reduce 31 administrative expenditures by twenty-five percent of the 32 reduction in administrative expenditure required by this 33 section . Thereafter, the administrative expenditures shall 34 not exceed five percent of the operating fund. Annually, the 35 -6- LSB 1095HV (2) 85 kh/sc 6/ 20

H.F. 454 board of directors shall certify to the department of education 1 the amounts of the area education agency’s expenditures and 2 its operating general fund. For the purposes of this section , 3 “base year” and “budget year” mean means the same as defined in 4 section 442.6 , Code 1989, and section 257.2 , and “administrative 5 expenditures” means expenditures for executive administration. 6 Sec. 12. Section 273.23, subsection 5, Code 2013, is amended 7 to read as follows: 8 5. The initial board, or new board if established in time 9 under subsection 3 , of the newly formed agency shall prepare an 10 annual budget estimating income and expenditures for programs 11 and services as provided in sections 273.1 through 273.9 12 and chapter 256B within the limits of funds provided under 13 section 256B.9 and chapter 257 . The board shall give notice 14 of a public hearing on the proposed budget by publication in 15 an official county newspaper in each county in the territory 16 of the area education agency in which the principal place 17 of business of a school district that is a part of the area 18 education agency is located. The notice shall specify the 19 date, which shall not be later than March 1, the time, and 20 the location of the public hearing. The proposed budget as 21 approved by the board shall be submitted to the state board, 22 on forms provided by the department, no later than March 15 23 for approval. The state board shall review the proposed 24 budget of the newly formed area education agency and shall, 25 before April May 1, either grant approval or return the budget 26 without approval with comments of the state board included. An 27 unapproved budget shall be resubmitted to the state board for 28 final approval not later than April May 15. The state board 29 shall give final approval only to budgets submitted by area 30 education agencies accredited by the state board or that have 31 been given conditional accreditation by the state board. 32 Sec. 13. Section 275.23A, subsection 2, Code 2013, is 33 amended to read as follows: 34 2. Following each federal decennial census the school 35 -7- LSB 1095HV (2) 85 kh/sc 7/ 20

H.F. 454 board shall determine whether the existing director district 1 boundaries meet the standards in subsection 1 according to 2 the most recent federal decennial census. In addition to the 3 authority granted to voters to change the number of directors 4 or method of election as provided in sections 275.35 , 275.36 , 5 and 278.1 , the board of directors of a school district may, 6 following a federal decennial census, by resolution and in 7 accordance with this section , authorize a change in the method 8 of election as set forth in section 275.12, subsection 2 , or 9 a change to either five or seven directors after the board 10 conducts a hearing on the resolution. If the board proposes to 11 change the number of directors from seven to five directors, 12 the resolution shall include a plan for reducing the number 13 of directors. If the board proposes to increase the number 14 of directors to seven directors, two directors shall be 15 added according to the procedure described in section 277.23, 16 subsection 2 . If necessary, the board of directors shall 17 redraw the director district boundaries. The director district 18 boundaries shall be described in the resolution adopted by 19 the school board. The resolution shall be adopted no earlier 20 than November 15 of the second year immediately following the 21 year in which the federal decennial census is taken nor later 22 than May 15 of the second third year immediately following 23 the year in which the federal decennial census is taken. 24 A copy of the plan shall be filed with the area education 25 agency administrator of the area education agency in which the 26 school’s electors reside. If the board does not provide for 27 an election as provided in sections 275.35 , 275.36 , and 278.1 28 and adopts a resolution to change the number of directors or 29 method of election in accordance with this subsection , the 30 district shall change the number of directors or method of 31 election as provided unless, within twenty-eight days following 32 the action of the board, the secretary of the board receives a 33 petition containing the required number of signatures, asking 34 that an election be called to approve or disapprove the action 35 -8- LSB 1095HV (2) 85 kh/sc 8/ 20

H.F. 454 of the board in adopting the resolution. The petition must be 1 signed by eligible electors equal in number to not less than 2 one hundred or thirty percent of the number of voters at the 3 last preceding regular school election, whichever is greater. 4 The board shall either rescind its action or direct the 5 county commissioner of elections to submit the question to the 6 registered voters of the school district at an election held 7 on a date specified in section 39.2, subsection 4 , paragraph 8 “c” . If a majority of those voting on the question at the 9 election favors disapproval of the action of the board, the 10 district shall not change the number of directors or method of 11 election. If a majority of those voting on the question does 12 not favor disapproval of the action, the board shall certify 13 the results of the election to the department of management and 14 the district shall change the number of directors or method of 15 election as provided in this subsection . At the expiration of 16 the twenty-eight-day period, if no petition is filed, the board 17 shall certify its action to the department of management and 18 the district shall change the number of directors or method of 19 election as provided in this subsection . 20 Sec. 14. Section 278.1, subsection 1, paragraph e, Code 21 2013, is amended to read as follows: 22 e. Direct the transfer of any surplus in the debt service 23 fund, physical plant and equipment levy fund , or other capital 24 projects project funds, or public education and recreation levy 25 fund to the general fund. 26 Sec. 15. Section 279.30, Code 2013, is amended to read as 27 follows: 28 279.30 Exceptions. 29 Each payment must be made payable to the person entitled to 30 receive the money or deposited directly into an account at a 31 financial institution, as defined in section 527.2, specified 32 by the person entitled to receive the money . The board of 33 directors of a school district or an area education agency may 34 by resolution authorize the secretary, upon approval of the 35 -9- LSB 1095HV (2) 85 kh/sc 9/ 20

H.F. 454 superintendent or designee, or administrator, in the case of 1 an area education agency, to issue payments when the board 2 of directors is not in session in payment of reasonable and 3 necessary expenses, but only upon verified bills filed with the 4 secretary or administrator, and for the payment of salaries 5 pursuant to the terms of a written contract. Each payment 6 must be made payable only to the person performing the service 7 or presenting the verified bill, and must state the purpose 8 for which the payment is issued. All bills and salaries for 9 which payments are issued prior to audit and allowance by the 10 board must be passed upon by the board of directors at the next 11 meeting and be entered in the regular minutes of the secretary. 12 Sec. 16. Section 279.42, Code 2013, is amended to read as 13 follows: 14 279.42 Gifts to schools. 15 The board of directors of a school district which that 16 receives funds through gifts, devises, and bequests a gift, 17 devise, or bequest shall deposit these the funds in a trust 18 and fund, permanent fund, or agency fund and shall use them 19 the funds in accordance with the terms of the gift, devise, or 20 bequest. 21 Sec. 17. Section 279.45, Code 2013, is amended to read as 22 follows: 23 279.45 Administrative expenditures. 24 For the budget year beginning July 1, 1989, and each of 25 the following three budget years, the board of directors of a 26 school district in which the The administrative expenditures 27 as a percent of the a school district’s operating general fund 28 for a base year shall not exceed five percent , shall reduce its 29 administrative expenditures so that they are one-half percent 30 less as a percent of the school district’s operating fund than 31 they were for the base year . However, a school district is 32 not required to reduce its administrative expenditures below 33 five percent of its operating fund. Thereafter, a school 34 district shall not increase the percent of its administrative 35 -10- LSB 1095HV (2) 85 kh/sc 10/ 20

H.F. 454 expenditures compared to its operating fund. Annually, 1 the board of directors shall certify to the department of 2 education the amounts of the school district’s administrative 3 expenditures and its operating general fund. For the purposes 4 of this section , “base year” and “budget year” mean means 5 the same as defined in section 442.6 , Code 1989, and section 6 257.2 , and “administrative expenditures” means expenditures for 7 executive administration. 8 Sec. 18. Section 282.10, subsection 4, Code 2013, is amended 9 to read as follows: 10 4. A whole grade sharing agreement shall be signed by the 11 boards of the districts involved in the agreement not later 12 than February 1 of the school year preceding the school year 13 for which the agreement is to take effect. The boards of 14 the districts shall negotiate as part of the new or existing 15 agreement the disposition of teacher quality funding provided 16 under chapter 284 . 17 Sec. 19. Section 282.20, unnumbered paragraph 3, Code 2013, 18 is amended to read as follows: 19 On or before February 15 and June July 15 of each year 20 the secretary of the creditor district shall deliver to the 21 secretary of the debtor district an itemized statement of such 22 tuition fees. 23 Sec. 20. Section 291.1, Code 2013, is amended to read as 24 follows: 25 291.1 President —— duties. 26 The president of the board of directors shall preside at 27 all of its meetings, sign all contracts made by the board, and 28 appear in on behalf of the corporation in all actions brought 29 by or against it, unless individually a party, in which case 30 this duty shall be performed by the secretary. The president 31 or the president’s designee shall sign, using an original or 32 facsimile signature, all school district warrants payments 33 drawn and authorize electronic funds transfers as provided by 34 law. The board of directors, by resolution, may designate an 35 -11- LSB 1095HV (2) 85 kh/sc 11/ 20

H.F. 454 individual, who shall not be the secretary, to sign warrants 1 payments or authorize electronic funds transfers on behalf of 2 the president. 3 Sec. 21. Section 291.6, subsection 3, Code 2013, is amended 4 by striking the subsection and inserting in lieu thereof the 5 following: 6 3. Accounting records. Keep an accurate accounting record 7 of each payment or electronic funds transfer from each fund 8 which shall be provided monthly to the board of directors. The 9 secretary of the creditor district shall prepare and deliver to 10 debtor districts an itemized statement of tuition fees charged 11 in accordance with sections 275.55A and 282.11 , and section 12 282.24, subsection 1 . 13 Sec. 22. Section 291.6, subsection 4, Code 2013, is amended 14 to read as follows: 15 4. Claims. Keep an accurate account accounting of all 16 expenses incurred by the corporation, and present the same to 17 the board for audit and payment. 18 Sec. 23. Section 291.7, Code 2013, is amended to read as 19 follows: 20 291.7 Monthly receipts, disbursements, and balances. 21 The secretary of each district shall file monthly with the 22 board of directors a complete statement of all receipts and 23 disbursements from the various funds each individual fund 24 during the preceding month, and also the balance remaining on 25 hand in the various funds each individual fund at the close of 26 the period covered by the statement, which monthly statements 27 shall be open to public inspection. 28 Sec. 24. Section 291.8, Code 2013, is amended by striking 29 the section and inserting in lieu thereof the following: 30 291.8 Payments and electronic funds transfers. 31 The secretary shall make each authorized payment, 32 countersign using an original or facsimile signature, and 33 maintain accounting records of the payments or electronic funds 34 transfers, showing the number, date, payee, originating fund, 35 -12- LSB 1095HV (2) 85 kh/sc 12/ 20

H.F. 454 the purpose, and the amount, and shall provide to the board at 1 each regular annual meeting a copy of the accounting records 2 maintained by the secretary. 3 Sec. 25. Section 291.12, Code 2013, is amended to read as 4 follows: 5 291.12 Duties of treasurer —— payment of warrants receipts 6 and expenditures . 7 The treasurer shall receive all moneys belonging to the 8 corporation, pay the same out only upon the order of the 9 president countersigned by the secretary, keeping and shall 10 keep an accurate account accounting record of all receipts 11 and expenditures in a book provided for that purpose . The 12 treasurer shall register all orders drawn payments and 13 electronic funds transfers made and reported to the treasurer 14 by the secretary, showing the number, date, to whom drawn, the 15 fund upon from which drawn each payment and transfer was made , 16 the purpose and amount. 17 Sec. 26. Section 291.14, Code 2013, is amended to read as 18 follows: 19 291.14 Financial statement. 20 The treasurer shall render a statement of the finances of the 21 corporation whenever required by the board, and the treasurer’s 22 books accounting records shall always be open for inspection. 23 Sec. 27. Section 298.2, subsections 1 and 5, Code 2013, are 24 amended to read as follows: 25 1. A physical plant and equipment levy of not exceeding 26 one dollar and sixty-seven cents per thousand dollars of 27 assessed valuation in the district is established except as 28 otherwise provided in this subsection . The physical plant 29 and equipment levy consists of the regular physical plant 30 and equipment levy of not exceeding thirty-three cents per 31 thousand dollars of assessed valuation in the district and 32 a voter-approved physical plant and equipment levy of not 33 exceeding one dollar and thirty-four cents per thousand 34 dollars of assessed valuation in the district. However, the 35 -13- LSB 1095HV (2) 85 kh/sc 13/ 20

H.F. 454 voter-approved physical plant and equipment levy may consist 1 of a combination of a physical plant and equipment property 2 tax levy and a physical plant and equipment income surtax 3 as provided in subsection 4 with the maximum amount levied 4 and imposed limited to an amount that could be raised by a 5 one dollar and thirty-four cent property tax levy. The levy 6 limitations of this subsection are subject to subsection 6 . 7 5. a. The proposition to levy the voter-approved physical 8 plant and equipment levy is not affected by a change in 9 the boundaries of the school district, except as otherwise 10 provided in this section . If each school district involved 11 in a school reorganization under chapter 275 has adopted 12 the voter-approved physical plant and equipment levy or the 13 sixty-seven and one-half cents per thousand dollars of assessed 14 value schoolhouse levy under section 278.1, subsection 7, 15 Code 1989 , prior to July 1, 1991 , and if the voters have not 16 voted upon the proposition to levy the voter-approved physical 17 plant and equipment levy in the reorganized district, the 18 existing voter-approved physical plant and equipment levy or 19 the existing schoolhouse levy, as applicable, is in effect for 20 the reorganized district for the least amount and the shortest 21 time for which it is in effect in any of the districts. 22 b. Authorized levies An authorized levy for the period of 23 time approved are is not affected as a result of a failure of a 24 proposition proposed to expand the purposes for which the funds 25 may be expended. 26 Sec. 28. Section 298.2, subsection 6, Code 2013, is amended 27 by striking the subsection. 28 Sec. 29. Section 298.3, subsection 1, Code 2013, is amended 29 by adding the following new paragraph: 30 NEW PARAGRAPH . n. The purchase, lease, or lease-purchase of 31 desks, furniture, or fixtures exceeding five hundred dollars in 32 value per purchase, lease, or lease-purchase transaction. Each 33 transaction may include multiple desk, furniture, or fixture 34 units. 35 -14- LSB 1095HV (2) 85 kh/sc 14/ 20

H.F. 454 Sec. 30. Section 298A.4, Code 2013, is amended to read as 1 follows: 2 298A.4 Physical plant and equipment levy fund. 3 The physical plant and equipment levy fund is a special 4 revenue capital project fund. A physical plant and equipment 5 levy fund must be established in any school corporation which 6 levies the tax authorized, whether regular or voter-approved, 7 under section 298.2 . 8 Sec. 31. Section 298A.9, Code 2013, is amended to read as 9 follows: 10 298A.9 Capital project funds. 11 A capital project fund must be established in any school 12 corporation which issues bonds or other authorized indebtedness 13 for capital projects or which initiates a capital project, or 14 which receives grants or other funds for capital projects. 15 Boards are authorized to establish more than one capital 16 project fund as necessary. Any balance remaining in a capital 17 project fund after the capital project is completed may be 18 retained for future capital projects in accordance with the 19 original purpose of the bond issue or voter-approved levy; or 20 may be transferred, by board resolution, to the debt service 21 fund, to the physical plant and equipment levy fund or another 22 capital project fund , or other to the fund from which the 23 surplus originated; or transferred to the general fund in 24 accordance with section 278.1, subsection 1 , paragraph “e” . 25 Sec. 32. Section 298A.13, Code 2013, is amended to read as 26 follows: 27 298A.13 Trust , permanent, or agency funds. 28 Trust , permanent, or agency funds shall be established by 29 any school corporation to account for gifts it receives to 30 be used for a particular purpose or to account for money and 31 property received and administered by the district as trustee 32 or custodian or in the capacity of an agent. Boards may 33 establish trust and , permanent, or agency funds as necessary. 34 Sec. 33. Section 321.375, subsection 2, Code 2013, is 35 -15- LSB 1095HV (2) 85 kh/sc 15/ 20

H.F. 454 amended to read as follows: 1 2. Prior to hiring an applicant for a school bus driver 2 position, including a contract position, an employer shall have 3 access to and shall review the information in the Iowa court 4 information system available to the general public, the sex 5 offender registry information under section 692A.121 available 6 to the general public, the central registry for child abuse 7 information established under section 235A.14 , and the central 8 registry for dependent adult abuse information established 9 under section 235B.5 for information regarding the applicant. 10 An employer shall follow the same procedure every five years 11 upon the renewal of an employee’s or contract employee’s school 12 bus driver’s license issued by the department of transportation 13 valid for the operation of a school bus. An employer shall 14 pay for the cost of the registry checks conducted pursuant to 15 this subsection . An employer shall maintain documentation 16 demonstrating compliance with this subsection . 17 Sec. 34. Section 423F.3, subsection 1, paragraph d, Code 18 2013, is amended by striking the paragraph. 19 Sec. 35. REPEAL. Sections 256.20, 256.21, 256.22, 256.23, 20 256.38, 297.35, and 298A.5, Code 2013, are repealed. 21 Sec. 36. APPLICABILITY. The following provision or 22 provisions of this Act apply to school budget years beginning 23 on or after July 1, 2013: 24 1. The section of this Act amending section 298.3, 25 subsection 1. 26 EXPLANATION 27 This bill makes various changes to Code provisions relating 28 to education as follows: 29 STUDENT STATE BOARD OF EDUCATION MEMBER. Code section 30 256.5A is amended to change the term of the nonvoting student 31 member of the state board of education from one year for all 32 students to one year for students in grade 11 and two years for 33 students in grade 10. 34 AMERICAN INDIAN EDUCATION EXPENSES. Code section 256.30 35 -16- LSB 1095HV (2) 85 kh/sc 16/ 20

H.F. 454 provides for the distribution and administration of moneys to 1 pay the expense of educating American Indian children residing 2 in the Sac and Fox Indian settlement. The bill eliminates 3 language that requires the tribal council to submit an annual 4 report and other reports as required to the department of 5 education on the expenditure of the moneys, and eliminates 6 language that requires the department of education to certify 7 compliance before the department of management can approve 8 allotment of the moneys. 9 ACCREDITED NONPUBLIC SCHOOL PUPIL ENROLLMENT. Code section 10 257.6 is amended to specify that dual enrolled pupils in 11 grades 9 through 12 and accredited nonpublic school pupils 12 enrolled part-time in a school district are eligible to be 13 counted proportionally as shared-time or part-time pupils 14 in a school district’s enrollment, but accredited nonpublic 15 pupils receiving classes or services funded entirely by federal 16 grants or allocations are not eligible to be counted in a 17 school district’s enrollment. The bill makes a corresponding 18 change to the definition of “enrollment served” in Code section 19 257.37, subsection 4. 20 VOCATIONAL EDUCATION REPORT. The bill amends Code section 21 258.12 to eliminate a provision that requires the treasurer of 22 state to annually report to the general assembly the receipts 23 and disbursements of the funds paid to the state under the 24 federal Carl D. Perkins Vocational and Technical Education Act 25 of 1998. 26 HIGH SCHOOL EQUIVALENCY DIPLOMAS. The bill amends Code 27 sections 259A.1 and 259A.2 to change subjects covered by high 28 school equivalency diploma tests by eliminating arts and 29 writing and adding literacy, and to require the test scorer, 30 rather than the testing center, to forward test scores to the 31 department. 32 DISTRICT TO COMMUNITY COLLEGE INNOVATIVE SHARING 33 PROJECT. The bill separates from language that provides for 34 district-to-community college sharing and concurrent enrollment 35 -17- LSB 1095HV (2) 85 kh/sc 17/ 20

H.F. 454 program requirements a provision assigning additional 1 supplementary weighting for high school pupils who are enrolled 2 in a class that uses an activities-based, project-based, and 3 problem-based learning approach offered through a partnership 4 with a nationally recognized nonprofit provider of rigorous and 5 innovative science, technology, engineering, and mathematics 6 curriculum for schools. The bill moves the language to a new 7 subsection of Code section 257.11 and authorizes a school 8 district to assign its resident pupils attending the class an 9 additional weighting of the percentage of the pupil’s school 10 day during which the pupil attends such classes times seventy 11 hundredths. 12 AEA BUDGET DEADLINES. Code sections 273.3 and 273.23 13 are amended to extend by one month the dates by which area 14 education agency proposed budgets must be reviewed, approved, 15 or returned by the state board and resubmitted to the state 16 board if the first submission is not approved. 17 REDISTRICTING FOLLOWING FEDERAL DECENNIAL CENSUS. Code 18 section 275.23A is amended to move the dates back by which a 19 resolution describing new director district boundaries must be 20 adopted by the school board if the school board redraws its 21 director district boundaries following the federal decennial 22 census. Currently, the resolution can be adopted no earlier 23 than November 15 of the year immediately following the year 24 in which the federal decennial census is taken nor later than 25 May 15 of the second year immediately following the year in 26 which the federal decennial census is taken. The bill moves 27 the timelines to no sooner than November 15 of the second year 28 following the federal decennial census and no later than May 15 29 of the third year following the federal decennial census. 30 SCHOOL AND AEA BOARD PAYMENTS AND WARRANTS. Code section 31 279.30 is amended to allow the board of directors of a 32 school district or of an AEA to direct deposit a payment at 33 a financial institution specified by the person entitled to 34 the money. Code sections 291.1, 291.6, 291.7, 291.8, 291.12, 35 -18- LSB 1095HV (2) 85 kh/sc 18/ 20