House Study Bill 561 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF EDUCATION BILL) A BILL FOR An Act relating to education by providing technical corrections 1 to revise references and to adjust language to reflect 2 current state school finance practices, revising references 3 to an accrediting agency, reestablishing a rulemaking 4 provision relating to the beginning teacher mentoring and 5 induction program, and providing for disposition and sale of 6 certain school district property. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5271XD (10) 85 kh/rj

S.F. _____ H.F. _____ Section 1. Section 256.7, subsection 21, paragraph b, 1 subparagraphs (1), (2), and (3), Code 2014, are amended to read 2 as follows: 3 (1) Annually, the department shall report state data 4 for each indicator in the condition of education report. 5 Rules adopted pursuant to this subsection shall specify that 6 the approved district-wide assessment of student progress 7 administered for purposes of the core academic indicators shall 8 be the assessment utilized by school districts statewide in the 9 school year beginning July 1, 2011, or a successor assessment 10 administered by the same assessment provider. 11 (2) Notwithstanding subparagraph (1), for the school year 12 beginning July 1, 2016, and each succeeding school year, the 13 rules shall provide that all students enrolled in school 14 districts in grades three through eleven shall be administered 15 an assessment during the last quarter of the school year that 16 at a minimum assesses the core academic indicators identified 17 in this paragraph “b” ; is aligned with the Iowa common core 18 standards in both content and rigor; accurately describes 19 student achievement and growth for purposes of the school, the 20 school district, and state accountability systems; and provides 21 valid, reliable, and fair measures of student progress toward 22 college or career readiness. 23 (3) The director shall establish an assessment task force 24 to review and make recommendations for a statewide assessment 25 of student progress on the core academic indicators identified 26 pursuant to this paragraph “b” . The task force shall recommend 27 a statewide assessment that is aligned to the Iowa common core 28 standards and is, at a minimum, valid, reliable, tested, and 29 piloted in Iowa. In addition, in developing recommendations, 30 the task force shall consider the costs to school districts and 31 the state in providing and administering such an assessment and 32 the technical support necessary to implement the assessment. 33 The task force shall submit its recommendations in a report 34 to the director, the state board, and the general assembly by 35 -1- LSB 5271XD (10) 85 kh/rj 1/ 11

S.F. _____ H.F. _____ January 1, 2015. The task force shall assist with the final 1 development and implementation of the assessment administered 2 pursuant to subparagraph (2). The task force members shall 3 include but not be limited to teachers, school administrators, 4 business leaders, representatives of state agencies, and 5 members of the general public. This subparagraph is repealed 6 July 1, 2020. 7 Sec. 2. Section 256.7, subsection 26, paragraph a, 8 subparagraph (1), Code 2014, is amended to read as follows: 9 (1) The rules establishing high school graduation 10 requirements shall authorize a school district or accredited 11 nonpublic school to consider that any student , at any grade 12 level, who satisfactorily completes a high school-level unit 13 of English or language arts, mathematics, science, or social 14 studies instruction has satisfactorily completed a unit of the 15 high school graduation requirements for that area as specified 16 in this lettered paragraph of instruction , and shall authorize 17 the school district or accredited nonpublic school to issue 18 high school credit for the unit to the student. 19 Sec. 3. Section 257.9, subsection 11, Code 2014, is amended 20 to read as follows: 21 11. Teacher leadership supplement state cost per pupil. The 22 teacher leadership supplement state cost per pupil amount for 23 the budget year beginning July 1, 2014, shall be calculated 24 by the department of management by dividing the allocation 25 amount for the budget year beginning July 1, 2014, in section 26 284.13, subsection 1 , paragraph “e” , subparagraph (5) (4) , by 27 one-third of the statewide total budget enrollment for the 28 fiscal year beginning July 1, 2014. The teacher leadership 29 supplement state cost per pupil for the budget year beginning 30 July 1, 2015, and succeeding budget years, shall be the teacher 31 leadership supplement state cost per pupil for the base year 32 plus a supplemental state aid amount that is equal to the 33 teacher leadership supplement categorical state percent of 34 growth, pursuant to section 257.8, subsection 2 , for the budget 35 -2- LSB 5271XD (10) 85 kh/rj 2/ 11

S.F. _____ H.F. _____ year, multiplied by the teacher leadership supplement state 1 cost per pupil for the base year. 2 Sec. 4. Section 257.10, subsection 12, paragraph a, Code 3 2014, is amended to read as follows: 4 a. The teacher leadership supplement district cost per 5 pupil amount for the budget year beginning July 1, 2014, shall 6 be calculated by the department of management by dividing the 7 allocation amount for the budget year beginning July 1, 2014, 8 in section 284.13, subsection 1 , paragraph “e” , subparagraph 9 (5) (4) , by one-third of the statewide total budget enrollment 10 for the fiscal year beginning July 1, 2014. For the budget 11 year beginning July 1, 2015, and succeeding budget years, the 12 teacher leadership supplement district cost per pupil for each 13 school district for a budget year is the teacher leadership 14 supplement program district cost per pupil for the base year 15 plus the teacher leadership supplement supplemental state aid 16 amount for the budget year. 17 Sec. 5. Section 257.13, subsection 3, Code 2014, is amended 18 to read as follows: 19 3. If the board of directors of a school district 20 determines that a need exists for additional funds exceeding 21 the authorized budget adjustment for on-time funding budget 22 adjustment pursuant to this section , a request for a modified 23 supplemental amount based upon increased enrollment may be 24 submitted to the school budget review committee as provided in 25 section 257.31 . 26 Sec. 6. Section 257.31, subsection 5, unnumbered paragraph 27 5, Code 2014, is amended to read as follows: 28 If a district has unusual circumstances, creating an unusual 29 need for additional funds, including but not limited to the 30 circumstances enumerated in paragraphs “a” through “n” , the 31 committee may grant supplemental aid to the district from any 32 funds appropriated to the department of education for the use 33 of the school budget review committee for the purposes of 34 this subsection . The school budget review committee shall 35 -3- LSB 5271XD (10) 85 kh/rj 3/ 11

S.F. _____ H.F. _____ review a school district’s unexpended fund balance prior to 1 any decision regarding unusual finance circumstances. Such 2 aid shall be miscellaneous income and shall not be included 3 in district cost. In addition to or as an alternative to 4 granting supplemental aid the committee may establish a 5 modified supplemental amount for the district by increasing its 6 supplemental state aid . The school budget review committee 7 shall review a school district’s unspent balance prior to any 8 decision to establish a modified supplemental amount under this 9 subsection . 10 Sec. 7. Section 257.31, subsection 6, paragraph a, Code 11 2014, is amended to read as follows: 12 a. The committee shall establish increase a modified 13 supplemental amount for a district by increasing its 14 supplemental state aid when the district submits evidence that 15 it requires additional funding for removal, management, or 16 abatement of environmental hazards due to a state or federal 17 requirement. Environmental hazards shall include but are not 18 limited to the presence of asbestos, radon, or the presence of 19 any other hazardous material dangerous to health and safety. 20 Sec. 8. Section 257.31, subsection 7, paragraph b, Code 21 2014, is amended to read as follows: 22 b. Other expenditures, including but not limited to 23 expenditures for salaries or recurring costs, are not 24 authorized under this subsection . Expenditures authorized 25 under this subsection shall not be included in a modified 26 supplemental state aid amount or district cost, and the portion 27 of the unexpended fund balance which is authorized to be spent 28 shall be regarded as if it were miscellaneous income. Any part 29 of the amount not actually spent for the authorized purpose 30 shall revert to its former status as part of the unexpended 31 fund balance. 32 Sec. 9. Section 257.31, subsection 14, paragraph b, 33 subparagraph (3), Code 2014, is amended to read as follows: 34 (3) A school district is only eligible to receive 35 -4- LSB 5271XD (10) 85 kh/rj 4/ 11

S.F. _____ H.F. _____ supplemental aid payments during the budget year if the school 1 district certifies to the school budget review committee that 2 for the year following the budget year it will notify the 3 school budget review committee to instruct the director of the 4 department of management to increase the district’s modified 5 supplemental state aid amount and will fund the modified 6 supplemental state aid amount increase either by using moneys 7 from its unexpended fund balance to reduce the district’s 8 property tax levy or by using cash reserve moneys to equal the 9 amount of the deficit that would have been property taxes and 10 any part of the state aid portion of the deficit not received 11 as supplemental aid under this subsection . The director 12 of the department of management shall make the necessary 13 adjustments to the school district’s budget to provide the 14 modified supplemental amount and shall make the supplemental 15 aid payments. 16 Sec. 10. Section 257.32, subsection 1, paragraph a, Code 17 2014, is amended to read as follows: 18 a. An area education agency budget review procedure is 19 established for the school budget review committee created 20 in section 257.30 . The school budget review committee, in 21 addition to its duties under section 257.31 , shall meet and 22 hold hearings each year to review unusual circumstances of area 23 education agencies, either upon the committee’s motion or upon 24 the request of an area education agency. The committee may 25 grant supplemental aid to the area education agency from funds 26 appropriated to the department of education for area education 27 agency budget review purposes, or an amount may be added to 28 the area education agency special education support services 29 modified supplemental state aid amount for districts in an area 30 or an additional amount may be added to district cost for media 31 services or educational services for all districts in an area 32 for the budget year either on a temporary or permanent basis, 33 or both. 34 Sec. 11. Section 257.41, subsection 1, Code 2014, is amended 35 -5- LSB 5271XD (10) 85 kh/rj 5/ 11

S.F. _____ H.F. _____ to read as follows: 1 1. Budget. The budget of an approved program for returning 2 dropouts and dropout prevention for a school district, after 3 subtracting funds received from other sources for that purpose, 4 shall be funded annually on a basis of one-fourth or more 5 from the district cost of the school district and up to 6 three-fourths by an increase in modified supplemental state aid 7 amount as defined in section 257.8 . Annually, the department 8 of management shall establish a modified supplemental amount 9 for each such school district equal to the difference between 10 the approved budget for the program for returning dropouts and 11 dropout prevention for that district and the sum of the amount 12 funded from the district cost of the school district plus funds 13 received from other sources. 14 Sec. 12. Section 260C.36, subsection 1, paragraph h, Code 15 2014, is amended to read as follows: 16 h. Compliance with the faculty accreditation standards of 17 the north central association of colleges and schools higher 18 learning commission, and compliance with faculty standards 19 required under specific programs offered by the community 20 college that are accredited by other accrediting agencies. 21 Sec. 13. Section 260C.47, subsection 1, unnumbered 22 paragraph 1, Code 2014, is amended to read as follows: 23 The state board of education shall establish an 24 accreditation process for community college programs by July 25 1, 1997 . The process shall be jointly developed and agreed 26 upon by the department of education and the community colleges. 27 The state accreditation process shall be integrated with the 28 accreditation process of the north central association of 29 colleges and schools higher learning commission , including the 30 evaluation cycle, the self-study process, and the criteria for 31 evaluation, which shall incorporate the standards for community 32 colleges developed under section 260C.48 ; and shall identify 33 and make provision for the needs of the state that are not met 34 by the association’s accreditation process. For the academic 35 -6- LSB 5271XD (10) 85 kh/rj 6/ 11

S.F. _____ H.F. _____ year commencing July 1, 1998, and in succeeding school years, 1 the The department of education shall use a two-component 2 process for the continued accreditation of community college 3 programs. 4 Sec. 14. Section 260C.47, subsection 1, paragraph b, Code 5 2014, is amended to read as follows: 6 b. The second component consists of the use of an 7 accreditation team appointed by the director of the department 8 of education, to conduct an evaluation, including an on-site 9 visit of each community college, with a comprehensive 10 evaluation to occur during the same year as the evaluation by 11 the north central association of colleges and schools occurring 12 once every ten years , and an interim evaluation midway between 13 comprehensive evaluations. The number and composition of the 14 accreditation team shall be determined by the director, but the 15 team shall include members of the department of education staff 16 and community college staff members from community colleges 17 other than the community college that conducts the programs 18 being evaluated for accreditation. Beginning July 1, 2006, 19 the The accreditation team shall monitor the quality faculty 20 plan implemented by each community college pursuant to section 21 260C.36 . 22 Sec. 15. Section 260C.48, subsection 4, Code 2014, is 23 amended to read as follows: 24 4. Commencing July 1, 2006, standards Standards relating to 25 quality assurance of faculty and ongoing quality professional 26 development shall be the accreditation standards of the north 27 central association of colleges and schools higher learning 28 commission, and the faculty standards required under specific 29 programs offered by the community college that are accredited 30 by other accrediting agencies. 31 Sec. 16. Section 261.9, subsection 1, paragraphs a, b, and 32 c, Code 2014, are amended to read as follows: 33 a. Is accredited by the north central association of 34 colleges and secondary schools accrediting agency based on 35 -7- LSB 5271XD (10) 85 kh/rj 7/ 11

S.F. _____ H.F. _____ their requirements higher learning commission . 1 b. Is accredited by the north central association of 2 colleges and secondary schools accrediting agency based on 3 their requirements higher learning commission , is exempt from 4 taxation under section 501(c)(3) of the Internal Revenue 5 Code, and annually provides a matching aggregate amount of 6 institutional financial aid equal to at least seventy-five 7 percent of the amount received in a fiscal year by the 8 institution’s students for Iowa tuition grant assistance under 9 this chapter . Commencing with the fiscal year beginning 10 July 1, 2006, the matching aggregate amount of institutional 11 financial aid shall increase by the percentage of increase 12 each fiscal year of funds appropriated for Iowa tuition grants 13 under section 261.25, subsection 1 , to a maximum match of one 14 hundred percent. The institution shall file annual reports 15 with the commission prior to receipt of tuition grant moneys 16 under this chapter . An institution whose income is not exempt 17 from taxation under section 501(c) of the Internal Revenue Code 18 and whose students were eligible to receive Iowa tuition grant 19 money in the fiscal year beginning July 1, 2003, shall meet the 20 match requirements of this paragraph no later than June 30, 21 2005. 22 c. Is a specialized college that is accredited by the 23 north central association of colleges and secondary schools 24 accrediting agency higher learning commission , and which offers 25 health professional programs that are affiliated with health 26 care systems located in Iowa. 27 Sec. 17. Section 261.92, subsection 1, Code 2014, is amended 28 to read as follows: 29 1. “Accredited higher education institution” means a 30 public institution of higher learning located in Iowa which 31 is accredited by the north central association of colleges 32 and secondary schools accrediting agency based on their 33 requirements as of April 1, 1969 higher learning commission , 34 or an institution of higher learning located in Iowa which is 35 -8- LSB 5271XD (10) 85 kh/rj 8/ 11

S.F. _____ H.F. _____ operated privately and not controlled or administered by any 1 state agency or any subdivision of the state, and which meets 2 the following requirements: 3 a. Is accredited by the north central association of 4 colleges and secondary schools accrediting agency based on 5 their requirements as of April 1, 1969, and, 6 b. Promotes promotes equal opportunity and affirmative 7 action efforts in the recruitment, appointment, assignment, 8 and advancement of personnel at the institution and provides 9 information regarding such efforts to the commission upon 10 request. 11 Sec. 18. Section 284.5, Code 2014, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 8. The state board shall adopt rules to 14 administer this section. 15 Sec. 19. Section 297.22, subsection 1, paragraph b, Code 16 2014, is amended to read as follows: 17 b. Proceeds from the sale or disposition of real or other 18 property shall be deposited into the fund which was used to 19 account for the acquisition of the property. If the district 20 is unable to determine which fund was used to account for the 21 acquisition of the property or if the fund no longer exists 22 in the district, the proceeds from the sale or disposition 23 of real property shall be placed in the physical plant and 24 equipment levy fund . Proceeds , and the proceeds from the sale 25 or disposition of property other than real property shall be 26 placed in the general fund. Proceeds from the lease of real or 27 other property shall be placed in the general fund. 28 Sec. 20. Section 297.22, subsection 3, Code 2014, is amended 29 to read as follows: 30 3. The provisions in subsections 1 and 2 relating to the 31 sale, lease, or disposition of school district property do not 32 apply to student-constructed buildings and the property on 33 which student-constructed buildings are located. The board of 34 directors of a school district may sell, lease, or dispose of 35 -9- LSB 5271XD (10) 85 kh/rj 9/ 11

S.F. _____ H.F. _____ a student-constructed building and the property on which the 1 student-constructed building is located, and may purchase sites 2 for the erection of additional student-constructed structures, 3 by any procedure which is adopted by the board. The proceeds 4 from disposition of a student-constructed structure shall be 5 placed in the school district’s student construction fund. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill makes technical corrections to revise internal 10 references and adjusts language to reflect current state school 11 finance practices, revising references to an accrediting 12 agency, reestablishes a rulemaking provision relating to the 13 beginning teacher mentoring and induction program, and provides 14 for the disposition and sale of certain school district 15 property. 16 The bill amends Code sections 260C.36, 260C.47, 260C.48, 17 261.9, and 261.92 to replace references to the “north central 18 association of colleges and (secondary) schools” with 19 references to the higher learning commission. The bill states 20 that the comprehensive evaluation conducted on a community 21 college must occur every 10 years, rather than during the same 22 year as the evaluation by the accrediting agency as the current 23 requirement provides. The bill also strikes obsolete language 24 from these Code sections as necessary. 25 The bill modifies a provision relating to core indicators 26 of student achievement to differentiate between core academic 27 indicators and other core indicators that include but are 28 not limited to graduation rate, postsecondary education, 29 and successful employment in Iowa. The bill provides that 30 assessments of core indicators are to be administered to assess 31 core academic indicators. 32 The bill provides that school districts and accredited 33 nonpublic schools may consider that any student at any grade 34 level who satisfactorily completes a high school-level unit of 35 -10- LSB 5271XD (10) 85 kh/rj 10/ 11

S.F. _____ H.F. _____ instruction has satisfactorily completed a unit of the high 1 school graduation requirements for that area of instruction 2 and the school district or school may issue high school credit 3 for the unit to the student. Currently, any student who 4 successfully completes English or language arts, mathematics, 5 science, and social studies at the secondary level may receive 6 high school credit for such completion. 7 The bill corrects internal references and modifies state 8 school finance language modified or enacted by 2013 Iowa Acts, 9 chapter 121 (HF 215). The internal references to provisions 10 establishing the teacher leadership supplement, and the 11 language modifications relate to changes to the terms “modified 12 allowable growth” and “modified supplemental amount” in school 13 district funding terminology. 14 The bill also reestablishes a provision, inadvertently 15 stricken in the 2013 legislation, requiring the state board of 16 education to adopt rules to administer the beginning teacher 17 mentoring and induction program. 18 The bill establishes that a school district may deposit 19 proceeds from the sale or disposition of real or other property 20 into the fund which was used to account for the acquisition 21 of the property. If the district is unable to determine 22 which fund was used or if the fund no longer exists, the 23 proceeds shall be placed in the physical plant and equipment 24 levy fund. Current law only permits that the proceeds be 25 placed in the physical plant and equipment levy fund. The 26 same Code provision is amended to specify that a school 27 district may purchase sites for the erection of additional 28 “student-constructed” structures, and the proceeds from the 29 disposition of a student-constructed structure must be placed 30 in the school district’s student construction fund. 31 -11- LSB 5271XD (10) 85 kh/rj 11/ 11