H.F. 104 Section 1. Section 282.18, subsection 2, paragraphs a and b, 1 Code 2017, are amended to read as follows: 2 a. By March 1 of the preceding school year for students 3 entering grades one through twelve, or by September 1 of the 4 current school year for students entering kindergarten, the 5 parent or guardian shall send notification to the district 6 of residence and the receiving district, on forms prescribed 7 by the department of education, that the parent or guardian 8 intends to enroll the parent’s or guardian’s child in a public 9 school in another school district. For school years beginning 10 on or after July 1, 2018, the notification sent to the 11 district of residence shall be accompanied by the property tax 12 equalization fee as calculated under subsection 7, paragraph 13 “c” , if applicable. If a parent or guardian fails to file a 14 notification that the parent intends to enroll the parent’s 15 or guardian’s child in a public school in another district by 16 the deadline specified in this subsection , the procedures of 17 subsection 4 apply. 18 b. The board of the receiving district shall enroll the 19 pupil in a school in the receiving district for the following 20 school year unless the receiving district has insufficient 21 classroom space for the pupil. The board of directors 22 of a receiving district may adopt a policy granting the 23 superintendent of the school district authority to approve open 24 enrollment applications. If the request is granted, the board 25 shall transmit a copy of the form to the parent or guardian and 26 the school district of residence within five days after board 27 action, but not later than June 1 of the preceding school year. 28 The parent or guardian may withdraw the request at any time 29 prior to the start of the school year. A denial of a request 30 by the board of a receiving district is not subject to appeal. 31 The timely withdrawal of a request by the parent or guardian 32 or the denial of a request and upon conclusion of any appeals 33 resulting from such denial shall result in a refund of the 34 property tax equalization fee to the parent or guardian by the 35 -1- LSB 1141YH (8) 87 md/sc 1/ 8

H.F. 104 district of residence, if applicable. 1 Sec. 2. Section 282.18, subsection 4, paragraph a, Code 2 2017, is amended to read as follows: 3 a. After March 1 of the preceding school year and until 4 the date specified in section 257.6, subsection 1 , the 5 parent or guardian shall send notification to the district 6 of residence and the receiving district, on forms prescribed 7 by the department of education, that good cause, as defined 8 in paragraph “b” , exists for failure to meet the March 1 9 deadline. For school years beginning on or after July 1, 2018, 10 the notification sent to the district of residence shall be 11 accompanied by the property tax equalization fee as calculated 12 under subsection 7, paragraph “c” , if applicable. The board 13 of directors of a receiving school district may adopt a policy 14 granting the superintendent of the school district authority 15 to approve open enrollment applications submitted after the 16 March 1 deadline. The board of the receiving district shall 17 take action to approve the request if good cause exists. If 18 the request is granted, the board shall transmit a copy of 19 the form to the parent or guardian and the school district of 20 residence within five days after board action. A denial of a 21 request by the board of a receiving district is not subject to 22 appeal. The parent or guardian may withdraw the request at 23 any time prior to a decision by the receiving district. The 24 withdrawal of a request by the parent or guardian or the denial 25 of a request and upon conclusion of any appeals resulting 26 from such denial shall result in a refund of the property tax 27 equalization fee to the parent or guardian by the district of 28 residence, if applicable. 29 Sec. 3. Section 282.18, subsections 5, 6, and 7, Code 2017, 30 are amended to read as follows: 31 5. Open enrollment applications filed after March 1 32 of the preceding school year that do not qualify for good 33 cause as provided in subsection 4 shall be subject to the 34 approval of the board of the resident district and the 35 -2- LSB 1141YH (8) 87 md/sc 2/ 8

H.F. 104 board of the receiving district. The parent or guardian 1 shall send notification to the district of residence and 2 the receiving district that the parent or guardian seeks to 3 enroll the parent’s or guardian’s child in the receiving 4 district. For school years beginning on or after July 1, 5 2018, the notification sent to the district of residence 6 shall be accompanied by the property tax equalization fee as 7 calculated under subsection 7, paragraph “c” , if applicable. 8 A decision of either board to deny an application filed under 9 this subsection involving repeated acts of harassment of the 10 student or serious health condition of the student that the 11 resident district cannot adequately address is subject to 12 appeal under section 290.1 . The state board shall exercise 13 broad discretion to achieve just and equitable results that are 14 in the best interest of the affected child or children. The 15 parent or guardian may withdraw the request at any time prior 16 to a decision by the receiving district. The withdrawal of a 17 request by the parent or guardian or the denial of a request 18 and upon conclusion of any appeals resulting from such denial 19 shall result in a refund of the property tax equalization fee 20 to the parent or guardian by the district of residence, if 21 applicable. 22 6. A request under this section is for a period of not 23 less than one year. If the request is for more than one year 24 and the parent or guardian desires to have the pupil enroll 25 in a different district, the parent or guardian may petition 26 the current receiving district by March 1 of the previous 27 school year for permission to enroll the pupil in a different 28 district for a period of not less than one year. Upon receipt 29 of such a request, the current receiving district board may 30 act on the request to transfer to the other school district at 31 the next regularly scheduled board meeting after the receipt 32 of the request. The new receiving district shall enroll the 33 pupil in a school in the district unless there is insufficient 34 classroom space in the district or unless enrollment of the 35 -3- LSB 1141YH (8) 87 md/sc 3/ 8

H.F. 104 pupil would adversely affect the court-ordered or voluntary 1 desegregation plan of the district. For school years beginning 2 on or after July 1, 2018, if the request to transfer to a new 3 receiving district is approved, the property tax equalization 4 fee, as calculated under subsection 7, paragraph “c” , using the 5 consolidated levy rate of the new receiving district, shall 6 be sent by the district of residence to the new receiving 7 district, if applicable. A denial of a request to change 8 district enrollment within the approved period is not subject 9 to appeal. However, a pupil who has been in attendance 10 in another district under this section may return to the 11 district of residence and enroll at any time, once the parent 12 or guardian has notified the district of residence and the 13 receiving district in writing of the decision to enroll the 14 pupil in the district of residence. 15 7. a. A pupil participating in open enrollment shall be 16 counted, for state school foundation aid purposes, in the 17 pupil’s district of residence. A pupil’s residence, for 18 purposes of this section , means a residence under section 19 282.1 . 20 b. The board of directors of the district of residence 21 shall pay to the receiving district the sum of the state cost 22 per pupil for the previous school year plus either the teacher 23 leadership supplement state cost per pupil for the previous 24 fiscal year as provided in section 257.9 or the teacher 25 leadership supplement foundation aid for the previous fiscal 26 year as provided in section 284.13, subsection 1 , paragraph “e” , 27 if both the district of residence and the receiving district 28 are receiving such supplements, plus any moneys received for 29 the pupil as a result of the non-English speaking weighting 30 under section 280.4, subsection 3 , for the previous school 31 year multiplied by the state cost per pupil for the previous 32 year. If the pupil participating in open enrollment is also 33 an eligible pupil under section 261E.6 , the receiving district 34 shall pay the tuition reimbursement amount to an eligible 35 -4- LSB 1141YH (8) 87 md/sc 4/ 8

H.F. 104 postsecondary institution as provided in section 261E.7 . For 1 school years beginning on or after July 1, 2018, the district 2 of residence shall also pay to the receiving district the 3 property tax equalization fee paid by the parent or guardian, 4 if payment of the fee is required pursuant to paragraph “c” . 5 At the same time the district of residence pays the specified 6 sums under this paragraph “b” to the receiving district, the 7 receiving district shall pay to the pupil’s parent or guardian, 8 from such sums received, the property tax equalization refund 9 amount, if applicable, under paragraph “c” . 10 c. (1) For school years beginning on or after July 1, 2018, 11 if a parent or guardian of the pupil requesting open enrollment 12 under this section is the owner of a homestead, within the 13 meaning of section 425.11, located within the boundaries of 14 the district of residence, any notification of intent to open 15 enroll shall be accompanied by a property tax equalization fee 16 unless the amount of such fee is calculated to be zero or less. 17 (2) The property tax equalization fee shall be an amount 18 equal to the assessed valuation of the parent’s or guardian’s 19 homestead located in the district of residence used to 20 calculate property taxes due and payable during the fiscal year 21 prior to the school year for which open enrollment is requested 22 multiplied by an amount equal to the consolidated levy rate per 23 one thousand dollars of assessed valuation in the receiving 24 district for the same fiscal year minus the consolidated levy 25 rate per one thousand dollars of assessed valuation in the 26 district of residence for the same fiscal year. If the amount 27 of the property tax equalization fee calculated under this 28 subparagraph (2) is zero or less, a property tax equalization 29 fee is not required to be paid by the parent or guardian. 30 However, when the amount of the property tax equalization fee 31 calculated under this subparagraph (2) is less than zero, the 32 parent or guardian shall receive a property tax equalization 33 refund from the receiving district under paragraph “b” in an 34 amount equal to the number of dollars that the property tax 35 -5- LSB 1141YH (8) 87 md/sc 5/ 8

H.F. 104 equalization fee was calculated to be less than zero. 1 (3) The property tax equalization fee shall be paid annually 2 to the district of residence by the parent or guardian of a 3 child participating in open enrollment. If the request for 4 open enrollment is for more than one year, the fee shall be 5 calculated for each year in the manner provided in subparagraph 6 (2). Unless the parent or guardian has children open enrolled 7 in more than one receiving district during a school year, 8 a parent or guardian is only required to pay one property 9 tax equalization fee and may only receive one property tax 10 equalization refund each school year regardless of the number 11 of the parent’s or guardian’s children who are open enrolled to 12 the receiving district. 13 Sec. 4. Section 282.18, subsection 9, Code 2017, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . 0b. The property tax equalization fee, 16 if applicable under subsection 7, paragraph “c” , paid by the 17 parent or guardian for the school year in which the move took 18 place shall remain with the receiving district and shall not be 19 transferred to the child’s new district of residence. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 Code section 282.18 governs the criteria and procedures 24 for open enrollment of students between school districts 25 initiated by parents and guardians. Under this bill, for 26 school years beginning on or after July 1, 2018, if the parent 27 or guardian of a pupil requesting open enrollment is the owner 28 of a homestead located in the district of residence, the 29 notification of intent to open enroll sent by the parent or 30 guardian to the district of residence shall be accompanied by 31 a property tax equalization fee. The amount of the property 32 tax equalization fee is an amount equal to the assessed value 33 of the parent or guardian’s homestead located in the district 34 of residence for the fiscal year prior to the school year for 35 -6- LSB 1141YH (8) 87 md/sc 6/ 8

H.F. 104 which open enrollment is requested multiplied by an amount 1 equal to the consolidated levy rate in the receiving district 2 for the same fiscal year minus the consolidated levy rate in 3 the district of residence for the same fiscal year. If the 4 amount of the property tax equalization fee is zero or less, a 5 property tax equalization fee is not required to be paid by the 6 parent or guardian. However, when the amount of the property 7 tax equalization fee calculated is less than zero, the parent 8 or guardian shall receive a property tax equalization refund 9 from the receiving district in an amount equal to the number of 10 dollars that the property tax equalization fee was calculated 11 to be less than zero. 12 If the open enrollment request is granted, the district 13 of residence pays the property tax equalization fee received 14 from the parent or guardian to the receiving district along 15 with other amounts specified by current law. At the same time 16 the district of residence pays the specified sums of funding 17 to the receiving district, the receiving district shall pay 18 to the pupil’s parent or guardian, from such sums received, 19 the property tax equalization refund amount, if applicable. 20 The property tax equalization fee must be paid annually to 21 the district of residence by the parent or guardian of a 22 child participating in open enrollment. If the request for 23 open enrollment is for more than one year, the fee shall be 24 calculated each year and paid in the manner provided in the 25 bill. Unless the parent or guardian has children open enrolled 26 in more than one receiving district during a school year, a 27 parent or guardian is only required to pay one property tax 28 equalization fee each school year regardless of the number of 29 the parent’s or guardian’s children who are open enrolled to a 30 receiving district. 31 The bill also provides that the withdrawal of an open 32 enrollment request by the parent or guardian or the denial of a 33 request, and upon conclusion of any appeals resulting from such 34 denial, results in a refund of the property tax equalization 35 -7- LSB 1141YH (8) 87 md/sc 7/ 8