H.F. 2441 Section 1. NEW SECTION . 256.9A Limitation on guidance and 1 interpretations. 2 1. For the purposes of this section, “guidance” means a 3 document or statement issued by the department, the state 4 board, or the director that purports to interpret a law, a 5 rule, or other legal authority and is designed to provide 6 advice or direction to a person regarding the implementation 7 of or compliance with the law, the rule, or the other legal 8 authority being interpreted. 9 2. The department, the state board, or the director shall 10 not issue guidance inconsistent with any statute, rule, or 11 other legal authority and shall not issue guidance that imposes 12 any legally binding obligations or duties upon any person 13 unless such legally binding obligations or duties are required 14 or reasonably implied by any statute, rule, or other legal 15 authority. 16 3. This section shall not apply to a rule adopted pursuant 17 to chapter 17A, a declaratory order issued pursuant to section 18 17A.9, a document or statement required by federal law or a 19 court, or a document or statement issued in the course of a 20 contested case proceeding, an administrative proceeding, or a 21 judicial proceeding to which the department, the state board, 22 or the director is a party. 23 4. Guidance issued by the department, the state board, or 24 the director in violation of subsection 2 shall not be deemed 25 to be legally binding. 26 Sec. 2. Section 257.10, subsection 11, paragraph d, Code 27 2018, is amended to read as follows: 28 d. The use of the funds calculated under this subsection 29 shall comply with the requirements of chapter 256D may be used 30 for any school general fund purpose . 31 Sec. 3. Section 257.31, subsection 16, Code 2018, is amended 32 to read as follows: 33 16. The committee shall perform the duties assigned to it 34 under sections 257.32 , 257.40, and 260C.18B . 35 -1- LSB 6139HV (3) 87 md/jh 1/ 11

H.F. 2441 Sec. 4. Section 257.38, subsection 1, unnumbered paragraph 1 1, Code 2018, is amended to read as follows: 2 Boards of school districts, individually or jointly with 3 boards of other school districts, requesting to use a modified 4 supplemental amount for costs in excess of the amount received 5 under section 257.11, subsection 4 , for programs for at-risk 6 students, secondary students who attend alternative programs 7 and alternative schools, and returning dropouts and dropout 8 prevention, shall submit approve, by resolution, comprehensive 9 program plans for the programs and budget costs, including 10 annual requests for a modified supplemental amount for funding 11 the programs , to the department of education as a component 12 of the comprehensive school improvement plan submitted to the 13 department pursuant to section 256.7, subsection 21 . The 14 program plans shall include: 15 Sec. 5. Section 257.38, subsection 1, paragraph j, Code 16 2018, is amended by striking the paragraph. 17 Sec. 6. Section 257.38, subsection 2, Code 2018, is amended 18 to read as follows: 19 2. Program plans shall identify the parts of the plan that 20 will be implemented first upon approval adoption of the request 21 program plan . If a district is requesting to use a modified 22 supplemental amount to finance the program, the school district 23 shall not identify more than five percent of include in the 24 request the number of students in its budget enrollment for 25 the budget year identified as returning dropouts and potential 26 dropouts. 27 Sec. 7. Section 257.40, Code 2018, is amended to read as 28 follows: 29 257.40 Approval of programs for at-risk pupils, alternative 30 programs and schools, and returning dropouts and dropout 31 prevention requests for modified supplement amounts for adopted 32 program plans . 33 The board of directors of a school district requesting 34 to use a modified supplemental amount for costs in excess of 35 -2- LSB 6139HV (3) 87 md/jh 2/ 11

H.F. 2441 the funding received under section 257.11, subsection 4 , for 1 programs for at-risk students, secondary students who attend 2 alternative programs and alternative schools, or returning 3 dropouts and dropout prevention shall submit requests for 4 a modified supplemental amount, including budget costs, to 5 the department school budget review committee not later than 6 December 15 November 1 of the year preceding the budget year 7 during which the program will be offered. The department 8 school budget review committee shall review the request and 9 shall prior to January 15 either grant approval for the request 10 or if the amount requested does not exceed an amount equal 11 to the limitation of section 257.41, subsection 3, minus any 12 funds for the adopted program carried forward to the budget 13 year. The board of directors shall certify by resolution that 14 the request complies with the school district’s adopted program 15 plan. Only if the request violates the school district’s 16 adopted program plan may the school budget review committee 17 return the request for approval with comments of the department 18 committee included. An unapproved request for a program may 19 be resubmitted with modifications to the department school 20 budget review committee not later than February 1. Not later 21 than February 15, the department school budget review committee 22 shall notify the department of management and the school budget 23 review committee of the names of the school districts for which 24 programs using a modified supplemental amount for funding have 25 been approved and the approved budget of each program listed 26 separately for each school district having an approved request. 27 If requested, the board of directors shall provide the adopted 28 program plan for any audit performed under chapter 11 or other 29 provision of law. 30 Sec. 8. Section 257.41, subsection 1, Code 2018, is amended 31 to read as follows: 32 1. Budget. The budget of an approved adopted program for 33 at-risk students, secondary students who attend alternative 34 programs or alternative schools, or returning dropouts and 35 -3- LSB 6139HV (3) 87 md/jh 3/ 11

H.F. 2441 dropout prevention for a school district, after subtracting 1 funds received under section 257.11, subsection 4 , paragraphs 2 “a” through “c” , and from other sources for that purpose, 3 including any previous carryover or amount designated from the 4 school district’s flexibility account under section 298A.2, 5 subsection 2 , shall be funded annually on a basis of one-fourth 6 or more from the district cost of the school district and up to 7 three-fourths through establishment of a modified supplemental 8 amount. Annually, the department of management shall establish 9 a modified supplemental amount for each such school district 10 equal to the difference between the approved budget for the 11 program for that district and the sum of the amount funded from 12 the district cost of the school district plus funds received 13 under section 257.11, subsection 4 , and from other sources 14 for that purpose, including any previous carryover or amount 15 designated from the school district’s flexibility account under 16 section 298A.2, subsection 2 . 17 Sec. 9. Section 257.41, subsection 2, unnumbered paragraph 18 1, Code 2018, is amended to read as follows: 19 Appropriate uses of the funding for an approved adopted 20 program include but are not limited to the following: 21 Sec. 10. Section 257.41, subsection 2, paragraphs a and b, 22 Code 2018, are amended to read as follows: 23 a. Salary and benefits for staff including but not 24 limited to instructional staff, instructional support staff, 25 administrative staff, and guidance counselors, salary and 26 benefits or contract payments for psychologists licensed 27 under chapter 154B, licensed independent social workers or 28 master social workers under chapter 154C, licensed mental 29 health counselors under chapter 154D, and salary and benefits 30 for school-based youth services staff who are working with 31 students who are participating in at-risk or dropout prevention 32 programs, alternative programs, and alternative schools, in a 33 traditional or alternative setting, or who are working with 34 students who are participating in such programs or schools, 35 -4- LSB 6139HV (3) 87 md/jh 4/ 11

H.F. 2441 if the staff such person’s or counselor’s time is dedicated 1 to working with the program or with such students in order to 2 provide services beyond those which are provided by the school 3 district to students who are not participating in such programs 4 or alternative schools. However, if the staff such person or 5 counselor works part-time with students who are participating 6 in a program or alternative school and the staff person or 7 counselor has another unrelated staff assignment, only the 8 portion of the staff person’s or counselor’s time that is 9 related to the program or alternative school may be charged to 10 the program or school. For each such staff person or counselor 11 who works part time or on a contract basis with the program or 12 with students who are participating in a program or alternative 13 school, the school district shall have the authority to 14 designate the portion of the staff person’s or counselor’s time 15 and the corresponding amount of salary and benefits or contract 16 payment amount that is related to the program or alternative 17 school and shall include such designation as part of the 18 program plan under section 257.38 , if applicable. For purposes 19 of this paragraph, if an alternative setting is necessary 20 to provide for a program which is offered at a location off 21 school grounds and which is intended to serve student needs by 22 improving relationships and connections to school, decreasing 23 truancy and tardiness, providing opportunities for course 24 credit recovery, or helping students identified as at risk 25 to accelerate through multiple grade levels of achievement 26 within a shortened time frame, the tuition costs for a student 27 identified as at risk shall be considered an appropriate use of 28 the program funding under this section . 29 b. Professional development for all teachers, counselors, 30 and staff identified in paragraph “a” who are working with 31 at-risk students under a program or an alternative school 32 setting. 33 Sec. 11. Section 257.41, subsection 2, Code 2018, is amended 34 by adding the following new paragraph: 35 -5- LSB 6139HV (3) 87 md/jh 5/ 11

H.F. 2441 NEW PARAGRAPH . f. Any purpose determined by the board of 1 directors that directly benefits students participating in the 2 adopted program. 3 Sec. 12. Section 297.22, subsection 2, paragraph b, Code 4 2018, is amended to read as follows: 5 b. The board of directors of a school district may lease a 6 portion of an existing school building in which the remaining 7 portion of the building will be used for school purposes 8 for a period of not to exceed five years or lease a portion 9 of existing school property . The lease may be renewed at 10 the option of the board. The notice and public hearing 11 requirements of subsection 1 of this section do not apply to 12 the lease of a portion of an existing school building. A 13 school district shall pay out of the revenue from a lease to 14 the state of Iowa, and to the city, school district and any 15 other political subdivision authorized to levy taxes, an amount 16 as determined by this section . The amount shall be determined 17 by applying the annual tax rate of the taxing district to the 18 assessed value of the portion of the building leased, prorated 19 for the term of the lease during the appropriate taxing period. 20 The provisions of this section relating to the payment of 21 property tax because of leases shall only apply to leases to 22 private, for-profit entities which lease a portion of a school 23 building for a period of thirty or more consecutive days , 24 but shall not apply to property or equipment leased as part 25 of a project designed to generate electricity for the school 26 district . 27 Sec. 13. Section 298A.8, subsection 2, Code 2018, is amended 28 to read as follows: 29 2. For school budget years beginning on or after July 1, 30 2016, the board of directors of a school corporation may, 31 by board resolution, transfer from the school corporation’s 32 general fund to the student activity fund an amount necessary 33 to purchase or recondition protective and safety equipment 34 required for any extracurricular interscholastic athletic 35 -6- LSB 6139HV (3) 87 md/jh 6/ 11

H.F. 2441 contest or competition that is sponsored or administered by an 1 organization as defined in section 280.13 . 2 Sec. 14. EFFECTIVE DATE. The following, being deemed of 3 immediate importance, take effect upon enactment: 4 1. The section of this Act enacting section 256.9A. 5 2. The section of this Act amending section 257.10, 6 subsection 11. 7 3. The section of this Act amending section 297.22, 8 subsection 2, paragraph “b”. 9 4. The section of this Act amending section 298A.8, 10 subsection 2. 11 Sec. 15. APPLICABILITY. The following apply to school 12 budget years beginning on or after July 1, 2018: 13 1. The section of this Act enacting section 256.9A. 14 2. The section of this Act amending section 257.10, 15 subsection 11. 16 3. The section of this Act amending section 297.22, 17 subsection 2, paragraph “b”. 18 4. The section of this Act amending section 298A.8, 19 subsection 2. 20 Sec. 16. APPLICABILITY. The following apply to school 21 budget years beginning on or after July 1, 2019: 22 1. The section of this Act amending section 257.31, 23 subsection 16. 24 2. The section of this Act amending section 257.38, 25 subsection 1, unnumbered paragraph 1. 26 3. The section of this Act amending section 257.38, 27 subsection 1, paragraph “j”. 28 4. The section of this Act amending section 257.38, 29 subsection 2. 30 5. The section of this Act amending section 257.40. 31 6. The section of this Act amending section 257.41, 32 subsection 1. 33 7. The section of this Act amending section 257.41, 34 subsection 2, unnumbered paragraph 1. 35 -7- LSB 6139HV (3) 87 md/jh 7/ 11

H.F. 2441 8. The section of this Act amending section 257.41, 1 subsection 2, paragraphs “a” and “b”. 2 9. The section of this Act enacting section 257.41, 3 subsection 2, paragraph “f”. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to school district funding and the 8 authorized purposes for the expenditure of school district 9 funding for various education programs. 10 Current Code section 257.10(11) establishes an early 11 intervention categorical funding supplement for school 12 districts and requires the use of such funds to comply with 13 the requirements of Code chapter 256D (Iowa early intervention 14 block grant program). Code chapter 256D requires school 15 districts to expend funds for class size reduction and for 16 uses intended to achieve a higher level of student success 17 in the basic skills, especially reading. Under current law, 18 Code chapter 256D is repealed effective July 1, 2018. The 19 bill changes the purposes for which the early intervention 20 categorical funding supplement may be expended to be any school 21 general fund purpose. 22 The section of the bill amending Code section 257.10(11) 23 takes effect upon enactment and applies to school budget years 24 beginning on or after July 1, 2018. 25 Under current law, school districts are required to submit 26 to the department of education for approval program plans and 27 requests for a modified supplemental amount for programs for 28 at-risk students, secondary students who attend alternative 29 programs and alternative schools, and returning dropouts and 30 dropout prevention. The bill strikes the requirement for 31 submission to and approval by the department of education and 32 instead allows such program plans to be approved by resolution 33 of the school district board of directors. The bill also 34 removes other factors required by the department of education 35 -8- LSB 6139HV (3) 87 md/jh 8/ 11

H.F. 2441 from the list of requirements for program plans. When the 1 board of directors of a school district requests to use a 2 modified supplemental amount for the excess cost of an adopted 3 program, the bill requires such a request to be submitted to 4 the school budget review committee instead of the department 5 of education. 6 Current law provides that if a school district is requesting 7 to use a modified supplemental amount to finance the program, 8 the school district shall not identify more than 5 percent 9 of its budget enrollment for the budget year as returning 10 dropouts and potential dropouts. The bill strikes the 5 11 percent limitation and requires the school district to include 12 the number of students identified as returning dropouts and 13 potential dropouts in its request for the modified supplemental 14 amount. The deadline for filing requests for a modified 15 supplemental amount is also moved from December 15 to November 16 1 of the year preceding the applicable budget year. 17 Requests for a modified supplemental amount under the bill 18 are required to be approved if the request does not exceed 19 the modified supplemental amount limitations under current 20 law minus any funds for the adopted program carried forward 21 to the budget year. The bill requires the board of directors 22 to certify by resolution that the request complies with the 23 school district’s adopted program plan. Only if the request 24 violates the school district’s adopted program plan may the 25 school budget review committee return the request to the school 26 district for revision and resubmission. The bill requires the 27 school board, if requested, to provide the school district’s 28 adopted program plan for any audit performed under Code chapter 29 11 or other provision of law. 30 The bill adds the salary and benefits for staff including 31 but not limited to administrative staff and guidance counselors 32 and salary and benefits or contract payments for psychologists 33 licensed under Code chapter 154B, licensed independent social 34 workers or master social workers under Code chapter 154C, 35 -9- LSB 6139HV (3) 87 md/jh 9/ 11

H.F. 2441 licensed mental health counselors under Code chapter 154D, 1 who are working with at-risk or dropout prevention programs, 2 alternative programs, and alternative schools, in a traditional 3 or alternative setting, or who are working with students who 4 are participating in such programs or schools, to the list of 5 permissible uses of funding. The professional development 6 costs for those additional staff and counselors are also added 7 to the list of permissible funding uses. In addition, the bill 8 authorizes the expenditure of such funding for any purpose 9 determined by the board of directors that directly benefits 10 students participating in the adopted program. 11 The bill amends provisions relating to the authority 12 of a school board to lease a portion of an existing school 13 building under Code section 297.22 by striking a five-year 14 lease duration limitation and providing that certain provisions 15 relating to the payment of property taxes because of leases do 16 not apply to property or equipment leased as part of a project 17 designed to generate electricity for the school district. 18 Current Code section 298A.8 allows a school district board 19 of directors, by resolution, to transfer funds from the school 20 district’s general fund to the student activity fund an amount 21 necessary to purchase protective and safety equipment required 22 for any extracurricular interscholastic athletic contest 23 or competition. The bill adds the reconditioning of such 24 protective and safety equipment to the list of purposes for 25 which such a transfer is permitted. 26 The bill enacts Code section 256.9A, which prohibits the 27 department of education, the state board of education, and the 28 director of the department of education from issuing guidance, 29 as defined in the bill, that imposes a legal obligation or 30 duty on a person unless the obligation or duty is required or 31 reasonably implied by law, rule, or other legal authority. 32 Guidance issued in violation of the prohibition is not legally 33 binding. This provision does not apply to administrative 34 rules, declaratory orders, a document or statement required by 35 -10- LSB 6139HV (3) 87 md/jh 10/ 11