Senate File 336 - Introduced SENATE FILE 336 BY ZAUN , ROZENBOOM , and CHAPMAN A BILL FOR An Act relating to education by abolishing the department of 1 education and the state board of education, modifying the 2 duties and authority of certain state and local governmental 3 entities, establishing an education savings grant program 4 and fund, making appropriations, providing penalties, and 5 including effective date and applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1868XS (7) 85 md/sc

S.F. 336 DIVISION I 1 REPEAL OF DEPARTMENT OF EDUCATION AND 2 STATE BOARD OF EDUCATION 3 Section 1. NEW SECTION . 256B.16 Transfer of authority and 4 duties. 5 1. Beginning July 1, 2014, the authority and duties of the 6 department of education, the division of special education 7 created under section 256B.1, the state board of education, and 8 the director of the department of education under this chapter 9 shall to the extent feasible be transferred to the appropriate 10 area education agency where such special education services 11 are being provided. Accordingly, beginning July 1, 2014, all 12 references to the department of education or the division of 13 special education under this chapter and references to the 14 department of education or the division of special education 15 under other provisions of law relating to this chapter shall 16 mean the applicable area education agency and all references to 17 the state board of education or the director of the department 18 of education under this chapter or other provisions of law 19 relating to this chapter shall mean the board of directors of 20 the area education agency and the administrator of the area 21 education agency respectively. 22 2. Any moneys remaining in any account or fund under the 23 control of the department of education at the conclusion 24 of the fiscal year beginning July 1, 2013, relative to 25 the provisions of this chapter shall be transferred to the 26 control of the department of human services for such purposes. 27 Notwithstanding section 8.33, the moneys transferred in 28 accordance with this subsection shall not revert to the account 29 or fund from which appropriated or transferred. 30 3. Any contract entered into by the department of education 31 relating to the provisions of this chapter in effect at the 32 conclusion of the fiscal year beginning July 1, 2013, shall 33 continue in full force and effect pending transfer of such 34 contracts to the area education agencies. 35 -1- LSB 1868XS (7) 85 md/sc 1/ 48

S.F. 336 4. Any rule, regulation, form, order, or directive 1 promulgated by the department of education relative to the 2 provisions of this chapter in existence at the conclusion of 3 the fiscal year beginning July 1, 2013, shall continue in full 4 force and effect. 5 5. In regard to updating references and format in the Iowa 6 administrative code in order to correspond to the transferring 7 of duties of this chapter, the administrative rules coordinator 8 and the administrative rules review committee, in consultation 9 with the administrative code editor, shall jointly develop a 10 schedule for the necessary updating of the Iowa administrative 11 code. 12 Sec. 2. Section 256C.1, Code 2013, is amended to read as 13 follows: 14 256C.1 Definitions. 15 As used in this chapter : 16 1. “Approved local program” means a school district’s 17 program for four-year-old children approved by the department 18 of education to provide high quality preschool instruction . 19 2. “Department” means the department of education. 20 3. “Director” means the director of the department of 21 education. 22 4. 2. “Preschool program” means the statewide preschool 23 program for four-year-old children created in accordance with 24 this chapter . 25 5. 3. “School district approved to participate in the 26 preschool program” means a school district that meets the 27 school district requirements under section 256C.3 and has been 28 approved by the department to participate in the preschool 29 program . 30 6. “State board” means the state board of education. 31 Sec. 3. Section 256C.2, subsection 2, Code 2013, is amended 32 by striking the subsection. 33 Sec. 4. Section 256C.3, subsection 2, paragraph a, 34 subparagraph (3), Code 2013, is amended to read as follows: 35 -2- LSB 1868XS (7) 85 md/sc 2/ 48

S.F. 336 (3) The individual possesses a bachelor’s or graduate 1 degree from an accredited college or university with a major 2 in early childhood education or other appropriate major 3 identified in rule by the department as determined by the 4 school district’s board of directors . 5 Sec. 5. Section 256C.3, subsection 3, unnumbered paragraph 6 1, Code 2013, is amended to read as follows: 7 The state board shall adopt rules to further define the 8 following preschool program requirements which shall be used to 9 determine whether or not a Each local program implemented by 10 a school district approved to implement the preschool program 11 qualifies as an approved local program shall address or conform 12 with all of the following : 13 Sec. 6. Section 256C.3, subsection 3, paragraph e, Code 14 2013, is amended to read as follows: 15 e. Collaboration with participating families, early care 16 providers, and community partners including but not limited to 17 early childhood Iowa area boards, head start programs, shared 18 visions and other programs provided under the auspices of the 19 child development coordinating council , licensed child care 20 centers, registered child development homes, area education 21 agencies, child care resource and referral services provided 22 under section 237A.26 , early childhood special education 23 programs, services funded by Tit. I of the federal Elementary 24 and Secondary Education Act of 1965, and family support 25 programs. 26 Sec. 7. Section 256C.3, subsection 4, Code 2013, is amended 27 by striking the subsection and inserting in lieu thereof the 28 following: 29 4. School district requirements. 30 a. Subject to implementation of chapter 28E agreements 31 between a school district and community-based providers of 32 services to four-year-old children, a four-year-old child who 33 is enrolled in a child care center or child development home 34 licensed or registered under chapter 237A, or in an existing 35 -3- LSB 1868XS (7) 85 md/sc 3/ 48

S.F. 336 public or private preschool program, shall be eligible for 1 services provided by the school district’s local preschool 2 program. 3 b. Professional development for school district preschool 4 teachers shall be addressed in the school district’s 5 professional development plan implemented in accordance with 6 section 284.6. 7 Sec. 8. Section 256C.3, subsection 5, Code 2013, is amended 8 by striking the subsection. 9 Sec. 9. Section 256C.4, subsection 1, paragraph d, Code 10 2013, is amended to read as follows: 11 d. Preschool foundation aid funding shall not be commingled 12 with the other state aid payments made under section 257.16 13 to a school district and shall be accounted for by the local 14 school district separately from the other state aid payments. 15 Preschool foundation aid payments made to school districts 16 are miscellaneous income for purposes of chapter 257 . A 17 school district shall maintain a separate listing within its 18 budget for preschool foundation aid payments received and 19 expenditures made. A school district shall certify to the 20 department of education that preschool Preschool foundation aid 21 funding received by the school district was shall be used to 22 supplement, not supplant, moneys otherwise received and used by 23 the school district for preschool programming. 24 Sec. 10. Section 256C.4, subsection 2, paragraph b, Code 25 2013, is amended to read as follows: 26 b. The enrollment count of eligible students shall not 27 include a child who is included in the enrollment count 28 determined under section 257.6 or a child who is served by 29 a program already receiving state or federal funds for the 30 purpose of the provision of four-year-old preschool programming 31 while the child is being served by the program. Such preschool 32 programming includes but is not limited to child development 33 assistance programs provided under chapter 256A , special 34 education programs provided under section 256B.9 , school ready 35 -4- LSB 1868XS (7) 85 md/sc 4/ 48

S.F. 336 children grant programs and other programs provided under 1 chapter 256I , and federal head start programs and the services 2 funded by Tit. I of the federal Elementary and Secondary 3 Education Act of 1965. 4 Sec. 11. Section 256C.5, subsection 2, Code 2013, is amended 5 to read as follows: 6 2. Preschool foundation aid district amount. 7 a. For the initial school year for which a school district 8 approved to participate in the preschool program receives that 9 approval and implements the preschool program, the funding for 10 the preschool foundation aid payable to that school district 11 shall be paid from the appropriation made for that school year 12 in section 256C.6 , Code 2011, or in another appropriation 13 made for purposes of this chapter . For that school year, the 14 preschool foundation aid payable to the school district is 15 the product of the regular program state cost per pupil for 16 the school year multiplied by sixty percent of the school 17 district’s eligible student enrollment on the date in the 18 school year determined by rule . 19 b. For budget years subsequent to the initial school year 20 for which a school district approved to participate in the 21 preschool program receives that initial approval and implements 22 the preschool program, the funding for the preschool foundation 23 aid payable to that school district shall be paid from the 24 appropriation made in section 257.16 . Continuation of a 25 school district’s participation in the preschool program for 26 a second or subsequent budget year is subject to the approval 27 of the department based upon the school district’s compliance 28 with accountability provisions and the department’s on-site 29 review of the school district’s implementation of the preschool 30 program. 31 Sec. 12. Section 256C.5, subsection 4, Code 2013, is amended 32 by striking the subsection. 33 Sec. 13. NEW SECTION . 256F.12 Transfer of authority and 34 duties. 35 -5- LSB 1868XS (7) 85 md/sc 5/ 48

S.F. 336 1. Beginning July 1, 2014, the authority and duties of the 1 department of education, the state board, and the director of 2 the department of education under this chapter, to the extent 3 feasible, shall be transferred to the board of directors of 4 the community college serving the merged area in which the 5 charter school or innovation zone school, or such proposed 6 school, is located. Accordingly, beginning July 1, 2014, all 7 references to the department of education, the state board of 8 education, and the director of the department of education 9 under this chapter or other provisions of law relating to this 10 chapter shall mean the board of directors of the community 11 college serving the merged area in which the charter school or 12 innovation zone school, or such proposed school, is located. 13 2. Any contract entered into by the department of education 14 relating to the provisions of this chapter in effect at the 15 conclusion of the fiscal year beginning July 1, 2013, shall 16 continue in full force and effect pending transfer of such 17 contracts to the appropriate community college board of 18 directors. 19 3. Any rule, regulation, form, order, or directive 20 promulgated by the department of education relative to the 21 provisions of this chapter in existence at the conclusion of 22 the fiscal year beginning July 1, 2013, shall continue in full 23 force and effect. 24 Sec. 14. NEW SECTION . 256H.4 Transfer of authority and 25 duties. 26 1. Beginning July 1, 2014, the authority and duties of the 27 department of education and the director of the department 28 of education under this chapter shall be transferred to the 29 adjutant general of the state. Accordingly, beginning July 1, 30 2014, all references to the department of education and the 31 director of the department of education under this chapter or 32 other provisions of law relating to this chapter shall mean 33 adjutant general of the state. 34 2. Any contract entered into by the department of education 35 -6- LSB 1868XS (7) 85 md/sc 6/ 48

S.F. 336 relating to the provisions of this chapter in effect at the 1 conclusion of the fiscal year beginning July 1, 2013, shall 2 continue in full force and effect pending transfer of such 3 contracts to the adjutant general of the state. 4 3. Any rule, regulation, form, order, or directive 5 promulgated by the department of education relative to the 6 provisions of this chapter in existence upon conclusion of the 7 fiscal year beginning July 1, 2013, shall continue in full 8 force and effect. 9 Sec. 15. NEW SECTION . 256I.13 Transfer of authority and 10 duties. 11 1. Beginning July 1, 2014, the authority and duties of the 12 department of education and the director of the department 13 of education under this chapter shall be transferred to the 14 department of management and the director of the department 15 of management. Accordingly, beginning July 1, 2014, all 16 references to the department of education or the director of 17 the department of education under this chapter or under other 18 provisions of law relating to this chapter shall mean the 19 department of management and the director of the department of 20 management. 21 2. Any moneys remaining in any account or fund under the 22 control of the department of education at the conclusion of the 23 fiscal year beginning July 1, 2013, relative to the provisions 24 of this chapter shall be transferred to the control of the 25 department of management for such purposes. Notwithstanding 26 section 8.33, the moneys transferred in accordance with this 27 subsection shall not revert to the account or fund from which 28 appropriated or transferred. 29 3. Any contract entered into by the department of education 30 relating to the provisions of this chapter in effect at the 31 conclusion of the fiscal year beginning July 1, 2013, shall 32 continue in full force and effect pending transfer of such 33 contracts to the department of management. 34 4. Any rule, regulation, form, order, or directive 35 -7- LSB 1868XS (7) 85 md/sc 7/ 48

S.F. 336 promulgated by the department of education relative to the 1 provisions of this chapter in existence at the conclusion of 2 the fiscal year beginning July 1, 2013, shall continue in full 3 force and effect until amended, repealed, or supplemented by 4 affirmative action of the department of management under the 5 duties and powers established in this chapter and under the 6 procedure established in subsection 5. 7 5. In regard to updating references and format in the Iowa 8 administrative code in order to correspond to the transferring 9 of duties of this chapter, the administrative rules coordinator 10 and the administrative rules review committee, in consultation 11 with the administrative code editor, shall jointly develop a 12 schedule for the necessary updating of the Iowa administrative 13 code. 14 Sec. 16. Section 257C.5, subsection 1, Code 2013, is amended 15 to read as follows: 16 1. The powers of the authority are vested in and exercised 17 by a board consisting of five members, including the treasurer 18 of state, the director of the department of education, and the 19 director of the department of management, and two three members 20 appointed by the governor, subject to confirmation by the 21 senate. The state officials may designate representatives to 22 serve on the board for them. As far as possible, the governor 23 shall appoint members who are knowledgeable or experienced in 24 the school systems of this state or in finance. 25 Sec. 17. NEW SECTION . 258.18 Transfer of authority and 26 duties. 27 1. Beginning July 1, 2014, the authority and duties of the 28 department of education, the state board of education, and the 29 director of the department of education under this chapter 30 shall be transferred to the department of workforce development 31 and the director of the department of workforce development. 32 Accordingly, beginning July 1, 2014, all references to the 33 department of education under this chapter and references 34 to the department of education under other provisions of 35 -8- LSB 1868XS (7) 85 md/sc 8/ 48

S.F. 336 law relating to this chapter shall mean the department of 1 workforce development and all references to the state board 2 of education or the director of the department of education 3 under this chapter or other provisions of law relating to this 4 chapter shall mean the director of the department of workforce 5 development. 6 2. Any moneys remaining in any account or fund under the 7 control of the department of education at the conclusion 8 of the fiscal year beginning July 1, 2013, relative to the 9 provisions of this chapter shall be transferred to the control 10 of the department of workforce development for such purposes. 11 Notwithstanding section 8.33, the moneys transferred in 12 accordance with this subsection shall not revert to the account 13 or fund from which appropriated or transferred. 14 3. Any contract entered into by the department of education 15 relating to the provisions of this chapter in effect at the 16 conclusion of the fiscal year beginning July 1, 2013, shall 17 continue in full force and effect pending transfer of such 18 contracts to the department of workforce development. 19 4. Any rule, regulation, form, order, or directive 20 promulgated by the department of education relative to the 21 provisions of this chapter in existence at the conclusion of 22 the fiscal year beginning July 1, 2013, shall continue in full 23 force and effect until amended, repealed, or supplemented by 24 affirmative action of the department of workforce development 25 under the duties and powers established in this chapter and 26 under the procedure established in subsection 5. 27 5. In regard to updating references and format in the Iowa 28 administrative code in order to correspond to the transferring 29 of duties of this chapter, the administrative rules coordinator 30 and the administrative rules review committee, in consultation 31 with the administrative code editor, shall jointly develop a 32 schedule for the necessary updating of the Iowa administrative 33 code. 34 Sec. 18. NEW SECTION . 259.1A Transfer of authority and 35 -9- LSB 1868XS (7) 85 md/sc 9/ 48

S.F. 336 duties. 1 1. Beginning July 1, 2014, the authority and duties of the 2 department of education, the state board of education, and the 3 director of the department of education under this chapter 4 shall be transferred to the department of workforce development 5 and the director of the department of workforce development. 6 Accordingly, beginning July 1, 2014, all references to the 7 department of education under this chapter and references 8 to the department of education under other provisions of 9 law relating to this chapter shall mean the department of 10 workforce development and all references to the state board 11 of education or the director of the department of education 12 under this chapter or other provisions of law relating to this 13 chapter shall mean the director of the department of workforce 14 development. 15 2. Beginning July 1, 2014, the division of vocational 16 rehabilitation services created within the department of 17 education under section 259.3 shall be transferred to the 18 department of workforce development. 19 3. Any moneys remaining in any account or fund under the 20 control of the department of education at the conclusion 21 of the fiscal year beginning July 1, 2013, relative to the 22 provisions of this chapter shall be transferred to the control 23 of the department of workforce development for such purposes. 24 Notwithstanding section 8.33, the moneys transferred in 25 accordance with this subsection shall not revert to the account 26 or fund from which appropriated or transferred. 27 4. Any contract entered into by the department of education 28 relating to the provisions of this chapter in effect at the 29 conclusion of the fiscal year beginning July 1, 2013, shall 30 continue in full force and effect pending transfer of such 31 contracts to the department of workforce development. 32 5. Any rule, regulation, form, order, or directive 33 promulgated by the department of education relative to the 34 provisions of this chapter in existence at the conclusion of 35 -10- LSB 1868XS (7) 85 md/sc 10/ 48

S.F. 336 the fiscal year beginning July 1, 2013, shall continue in full 1 force and effect until amended, repealed, or supplemented by 2 affirmative action of the department of workforce development 3 under the duties and powers established in this chapter and 4 under the procedure established in subsection 6. 5 6. In regard to updating references and format in the Iowa 6 administrative code in order to correspond to the transferring 7 of duties of this chapter, the administrative rules coordinator 8 and the administrative rules review committee, in consultation 9 with the administrative code editor, shall jointly develop a 10 schedule for the necessary updating of the Iowa administrative 11 code. 12 Sec. 19. Section 259A.1, Code 2013, is amended to read as 13 follows: 14 259A.1 Tests. 15 The department of education Each board of directors of 16 the community college serving the merged area shall cause to 17 be made available for qualified individuals a high school 18 equivalency diploma. The diploma shall be issued on the basis 19 of satisfactory competence as shown by tests covering all 20 of the following: reading, arts, language arts, writing, 21 mathematics, science, and social studies. 22 Sec. 20. Section 259A.2, unnumbered paragraph 2, Code 2013, 23 is amended to read as follows: 24 Application shall be made to a testing center approved 25 by the department of education board of directors of the 26 community college serving the merged area , accompanied by an 27 application fee in an amount prescribed by the department board 28 of directors of the community college . The test scores shall 29 be forwarded by the testing center to the department board of 30 directors of the community college . 31 Sec. 21. Section 259A.3, Code 2013, is amended to read as 32 follows: 33 259A.3 Notice and fee. 34 Any applicant who has achieved the minimum passing standards 35 -11- LSB 1868XS (7) 85 md/sc 11/ 48

S.F. 336 as established by the department, and approved by the state 1 board, board of directors of the community college shall be 2 issued a high school equivalency diploma by the department upon 3 payment of an additional amount determined in rules adopted by 4 the state board of education by the board to cover the actual 5 costs of the production and distribution of the diploma. The 6 state board of education may also by rule establish a fee for 7 the issuance or verification of a transcript which shall be 8 based on the actual costs of the production or verification of 9 a transcript. 10 Sec. 22. Section 259A.4, Code 2013, is amended to read as 11 follows: 12 259A.4 Use of fees. 13 The fees collected under the provisions of this chapter 14 shall be used for the expenses incurred in administering, 15 providing test materials, scoring of examinations and issuance 16 of high school equivalency diplomas, and shall be disbursed 17 on the authorization of the director of the department of 18 education board of directors of the community college . The 19 treasurer of state shall be custodian of the funds paid to the 20 department community college and shall disburse the same on 21 vouchers audited as provided by law. The unobligated balance 22 in such funds at the close of each biennium shall be placed in 23 the general fund of the state. 24 Sec. 23. Section 259A.5, Code 2013, is amended to read as 25 follows: 26 259A.5 Rules. 27 The director of the department of education Each board 28 of directors of the community college shall adopt tests, 29 definitions of terms, and forms as necessary for the 30 administration of this chapter . The state board shall adopt 31 rules under chapter 17A to carry out this chapter . 32 Sec. 24. NEW SECTION . 260C.1A Transfer of authority and 33 duties. 34 1. Beginning July 1, 2014, the authority and duties of the 35 -12- LSB 1868XS (7) 85 md/sc 12/ 48

S.F. 336 department of education, the state board of education, and the 1 director of the department of education under this chapter 2 shall, to the extent feasible, be transferred to the boards of 3 directors of the community colleges serving the merged areas of 4 the state. Accordingly, beginning July 1, 2014, all references 5 to the department of education, the state board of education, 6 and the director of the department of education under this 7 chapter and references to the department of education, the 8 state board of education, and the director of the department 9 of education under other provisions of law relating to this 10 chapter shall mean the applicable board of directors of a 11 community college. 12 2. Beginning July 1, 2014, transfer of the duties and 13 authority of the department shall also include all duties and 14 authority of the community colleges division created within the 15 department of education under section 260C.6. 16 3. Any moneys remaining in any account or fund under the 17 control of the department of education at the conclusion of the 18 fiscal year beginning July 1, 2013, relative to the provisions 19 of this chapter shall be transferred to the control of the 20 applicable board of directors of a community college for such 21 purposes. Notwithstanding section 8.33, the moneys transferred 22 in accordance with this subsection shall not revert to the 23 account or fund from which appropriated or transferred. 24 4. Any contract entered into by the department of education 25 relating to the provisions of this chapter in effect at the 26 conclusion of the fiscal year beginning July 1, 2013, shall 27 continue in full force and effect pending transfer of such 28 contracts to the boards of directors of the community colleges. 29 5. Any rule, regulation, form, order, or directive 30 promulgated by the department of education relative to the 31 provisions of this chapter in existence at the conclusion of 32 the fiscal year beginning July 1, 2013, shall continue in full 33 force and effect. 34 Sec. 25. Section 260E.7, subsection 1, Code 2013, is amended 35 -13- LSB 1868XS (7) 85 md/sc 13/ 48

S.F. 336 to read as follows: 1 1. The economic development authority, in consultation with 2 the department of education, the department of revenue, and 3 the department of workforce development, shall coordinate and 4 review the new jobs training program. The economic development 5 authority shall adopt, amend, and repeal rules under chapter 6 17A that the community college will use in developing projects 7 with new and expanding industrial new jobs training proposals 8 and that the economic development authority shall use to review 9 and report on the new jobs training program as required in this 10 section . 11 Sec. 26. Section 260F.6B, Code 2013, is amended to read as 12 follows: 13 260F.6B High technology apprenticeship program. 14 The community colleges and the economic development 15 authority are authorized to fund high technology apprenticeship 16 programs which comply with the requirements specified in 17 section 260C.44 and which may include both new and statewide 18 apprenticeship programs. Notwithstanding the provisions 19 of section 260F.6, subsection 2 , relating to maximum award 20 amounts, moneys allocated to the community colleges with high 21 technology apprenticeship programs shall be distributed to the 22 community colleges based upon contact hours under the programs 23 administered during the prior fiscal year as determined by the 24 department of education economic development authority . The 25 economic development authority shall adopt rules governing this 26 section ’s operation and participant eligibility. 27 Sec. 27. Section 260F.7, Code 2013, is amended to read as 28 follows: 29 260F.7 Economic development authority to coordinate. 30 The economic development authority, in consultation with 31 the department of education and the department of workforce 32 development, shall coordinate the jobs training program. A 33 project shall not be funded under this chapter unless the 34 economic development authority approves the project. The 35 -14- LSB 1868XS (7) 85 md/sc 14/ 48

S.F. 336 authority shall adopt rules pursuant to chapter 17A governing 1 the program’s operation and eligibility for participation in 2 the program. The authority shall establish by rule criteria 3 for determining what constitutes an eligible business. 4 Sec. 28. Section 260H.2, Code 2013, is amended to read as 5 follows: 6 260H.2 Pathways for academic career and employment program. 7 A pathways for academic career and employment program is 8 established to provide funding to community colleges for the 9 development of projects in coordination with the economic 10 development authority, the department of education, the 11 department of workforce development, regional advisory boards 12 established pursuant to section 84A.4 , and community partners 13 to implement a simplified, streamlined, and comprehensive 14 process, along with customized support services, to enable 15 eligible participants to acquire effective academic and 16 employment training to secure gainful, quality, in-state 17 employment. 18 Sec. 29. Section 260H.8, Code 2013, is amended to read as 19 follows: 20 260H.8 Rules. 21 The department of education economic development authority , 22 in consultation with the community colleges , the economic 23 development authority, and the department of workforce 24 development, shall adopt rules pursuant to chapter 17A and this 25 chapter to implement the provisions of this chapter . Regional 26 advisory boards established pursuant to section 84A.4 shall be 27 consulted in the development and implementation of rules to be 28 adopted pursuant to this chapter . 29 Sec. 30. Section 260I.2, subsection 2, paragraph a, Code 30 2013, is amended to read as follows: 31 a. There is established for the community colleges 32 a gap tuition assistance fund in the state treasury to 33 be administered by the department of education economic 34 development authority . The funds in the gap tuition assistance 35 -15- LSB 1868XS (7) 85 md/sc 15/ 48

S.F. 336 fund are appropriated to the department of education economic 1 development authority for the gap tuition assistance program. 2 Sec. 31. Section 260I.3, subsection 1, Code 2013, is amended 3 to read as follows: 4 1. The department of education, in consultation with the 5 economic development authority , shall adopt rules pursuant to 6 this chapter defining eligibility criteria for persons applying 7 to receive tuition assistance under this chapter . 8 Sec. 32. Section 260I.10, Code 2013, is amended to read as 9 follows: 10 260I.10 Oversight. 11 1. The department of education economic development 12 authority , in coordination with the community colleges, shall 13 establish a steering committee. The steering committee shall 14 determine if the performance measures of the gap tuition 15 assistance program are being met and shall take necessary steps 16 to correct any deficiencies. The steering committee shall meet 17 at least quarterly to evaluate and monitor the performance of 18 the gap tuition assistance program. 19 2. The department of education economic development 20 authority , in coordination with the community colleges, 21 shall develop a common intake tracking system that shall be 22 implemented consistently by each participating community 23 college. 24 3. The department of education economic development 25 authority shall coordinate statewide oversight, evaluation, and 26 reporting efforts for the gap tuition assistance program. 27 Sec. 33. Section 260I.11, Code 2013, is amended to read as 28 follows: 29 260I.11 Rules. 30 The department of education economic development authority , 31 in consultation with the economic development authority and the 32 community colleges, shall adopt rules pursuant to chapter 17A 33 and this chapter to implement the provisions of this chapter . 34 Sec. 34. Section 261.1, subsection 2, paragraph b, Code 35 -16- LSB 1868XS (7) 85 md/sc 16/ 48

S.F. 336 2013, is amended by striking the paragraph. 1 Sec. 35. NEW SECTION . 261.8 Transfer of authority and 2 duties. 3 1. Beginning July 1, 2014, the authority and duties of the 4 department of education, the state board of education, and the 5 director of the department of education under this chapter 6 shall be transferred to the college student aid commission. 7 Accordingly, beginning July 1, 2014, all references to the 8 department of education or the director of the department of 9 education under this chapter and references to the department 10 of education or the director of the department of education 11 under other provisions of law relating to this chapter shall 12 mean the college student aid commission. 13 2. Any moneys remaining in any account or fund under the 14 control of the department of education at the conclusion 15 of the fiscal year beginning July 1, 2013, relative to the 16 provisions of this chapter shall be transferred to the control 17 of the college student aid commission for such purposes. 18 Notwithstanding section 8.33, the moneys transferred in 19 accordance with this subsection shall not revert to the account 20 or fund from which appropriated or transferred. 21 3. Any contract entered into by the department of education 22 relating to the provisions of this chapter in effect at the 23 conclusion of the fiscal year beginning July 1, 2013, shall 24 continue in full force and effect pending transfer of such 25 contracts to the college student aid commission. 26 4. Any rule, regulation, form, order, or directive 27 promulgated by the department of education relative to the 28 provisions of this chapter in existence at the conclusion of 29 the fiscal year beginning July 1, 2013, shall continue in full 30 force and effect until amended, repealed, or supplemented by 31 affirmative action of the college student aid commission under 32 the duties and powers established in this chapter and under the 33 procedure established in subsection 5. 34 5. In regard to updating references and format in the Iowa 35 -17- LSB 1868XS (7) 85 md/sc 17/ 48

S.F. 336 administrative code in order to correspond to the transferring 1 of duties of this chapter, the administrative rules coordinator 2 and the administrative rules review committee, in consultation 3 with the administrative code editor, shall jointly develop a 4 schedule for the necessary updating of the Iowa administrative 5 code. 6 Sec. 36. NEW SECTION . 261E.1A Transfer of authority and 7 duties. 8 1. Beginning July 1, 2014, the authority and duties of 9 the department of education, the state board of education, 10 and the director of the department of education under this 11 chapter shall be transferred to the state board of regents. 12 Accordingly, beginning July 1, 2014, all references to the 13 department of education, the state board of education, or the 14 director of the department of education under this chapter 15 and references to the department of education, state board of 16 education, or director of the department of education under 17 other provisions of law relating to this chapter shall mean the 18 state board of regents. 19 2. Any moneys remaining in any account or fund under the 20 control of the department of education at the conclusion of the 21 fiscal year beginning July 1, 2013, relative to the provisions 22 of this chapter shall be transferred to the control of the 23 state board of regents for such purposes. Notwithstanding 24 section 8.33, the moneys transferred in accordance with this 25 subsection shall not revert to the account or fund from which 26 appropriated or transferred. 27 3. Any contract entered into by the department of education 28 relating to the provisions of this chapter in effect at the 29 conclusion of the fiscal year beginning July 1, 2013, shall 30 continue in full force and effect pending transfer of such 31 contracts to the state board of regents. 32 4. Any rule, regulation, form, order, or directive 33 promulgated by the department of education relative to the 34 provisions of this chapter in existence at the conclusion of 35 -18- LSB 1868XS (7) 85 md/sc 18/ 48

S.F. 336 the fiscal year beginning July 1, 2013, shall continue in full 1 force and effect until amended, repealed, or supplemented by 2 affirmative action of the state board of regents under the 3 duties and powers established in this chapter and under the 4 procedure established in subsection 5. 5 5. In regard to updating references and format in the Iowa 6 administrative code in order to correspond to the transferring 7 of duties of this chapter, the administrative rules coordinator 8 and the administrative rules review committee, in consultation 9 with the administrative code editor, shall jointly develop a 10 schedule for the necessary updating of the Iowa administrative 11 code. 12 Sec. 37. Section 262.9, subsection 27, Code 2013, is amended 13 to read as follows: 14 27. Explore , in conjunction with the department 15 of education, the need for coordination between school 16 districts, area education agencies, state board of regents 17 institutions, and community colleges for purposes of delivery 18 of courses, use of telecommunications, transportation, and 19 other similar issues. Coordination may include but is not 20 limited to coordination of calendars, programs, schedules, or 21 telecommunications emissions. The state board shall develop 22 recommendations as necessary, which shall be submitted in a 23 report to the general assembly on a timely basis. 24 Sec. 38. Section 262.9, subsection 33, unnumbered paragraph 25 1, Code 2013, is amended to read as follows: 26 In consultation with the state board of education, establish 27 Establish and enter into a collective statewide articulation 28 agreement with the community colleges established pursuant to 29 chapter 260C , which shall provide for the seamless transfer 30 of academic credits from a completed associate of arts or 31 associate of science degree program offered by a community 32 college to a baccalaureate degree program offered by an 33 institution of higher education governed by the board. The 34 board shall also do the following: 35 -19- LSB 1868XS (7) 85 md/sc 19/ 48