H.F. 564 DIVISION I 1 PROFESSIONAL DEVELOPMENT 2 Section 1. Section 284.6, subsections 8 and 9, Code 2017, 3 are amended to read as follows: 4 8. For each year in which a school district receives funds 5 calculated and paid to school districts for professional 6 development pursuant to section 257.10, subsection 10 , or 7 section 257.37A, subsection 2 , the school district shall 8 create quality professional development opportunities. Not 9 less than thirty-six hours in the school calendar, held 10 outside of the minimum school day, shall be set aside during 11 nonpreparation time or designated professional development 12 time to allow practitioners to collaborate with each other to 13 deliver educational programs and assess student learning, or 14 to engage in peer review pursuant to section 284.8, subsection 15 1 . The funds may be used to implement the professional 16 development provisions of the teacher career paths and 17 leadership roles specified in section 284.15 , including but 18 not limited to providing professional development to teachers, 19 including additional salaries for time beyond the normal 20 negotiated agreement; pay for substitute teachers, professional 21 development materials, speakers, and professional development 22 content; textbooks and curriculum materials used for classroom 23 purposes if such textbooks and curriculum materials include 24 professional development; administering assessments pursuant to 25 section 256.7, subsection 21, paragraph “b” , subparagraphs (1) 26 and (2), if such assessments include professional development; 27 and costs associated with implementing the individual 28 professional development plans. The use of the funds shall 29 be balanced between school district, attendance center, 30 and individual professional development plans, making every 31 reasonable effort to provide equal access to all teachers. 32 9. Moneys received pursuant to section 257.10, subsection 33 10 , or section 257.37A, subsection 2 , shall be maintained 34 as a separate listing within a school district’s or area 35 -1- LSB 2175HV (2) 87 md/jh/sc 1/ 11

H.F. 564 education agency’s budget for funds received and expenditures 1 made pursuant to this subsection . The department shall not 2 require a school district or area education agency to allocate 3 a specific amount or percentage of moneys received pursuant to 4 section 257.10, subsection 10, or section 257.37A, subsection 5 2, for professional development related to implementation of 6 the core curriculum under section 256.7, subsection 26. A 7 school district shall certify to the department of education 8 how the school district allocated the funds and that moneys 9 received under this subsection were used to supplement, not 10 supplant, the professional development opportunities the school 11 district would otherwise make available. 12 Sec. 2. EFFECTIVE UPON ENACTMENT. This division of this 13 Act, being deemed of immediate importance, takes effect upon 14 enactment. 15 Sec. 3. APPLICABILITY. This division of this Act applies to 16 school budget years beginning on or after July 1, 2017. 17 DIVISION II 18 AT-RISK AND DROPOUT PREVENTION 19 Sec. 4. Section 257.11, subsection 4, paragraph d, Code 20 2017, is amended to read as follows: 21 d. Up to five percent of the total amount Amounts that a 22 school district receives as supplementary weighting pursuant 23 to this subsection or as a modified supplemental amount 24 received under section 257.41 may be used in the budget year 25 for purposes of providing district-wide , or building-wide , 26 or grade-specific at-risk and dropout prevention programming 27 targeted to pupils who are not deemed at risk. 28 Sec. 5. Section 257.41, subsection 2, paragraphs a and b, 29 Code 2017, are amended to read as follows: 30 a. Salary and benefits for instructional staff, 31 instructional support staff, guidance counselors, and 32 school-based youth services staff who are working with 33 students who are participating in at-risk or dropout prevention 34 programs, alternative programs, and alternative schools, in a 35 -2- LSB 2175HV (2) 87 md/jh/sc 2/ 11

H.F. 564 traditional or alternative setting, if the staff person’s or 1 counselor’s time is dedicated to working with such students in 2 order to provide services beyond those which are provided by 3 the school district to students who are not participating in 4 such programs or alternative schools. However, if the staff 5 person or counselor works part-time with students who are 6 participating in a program or alternative school and the staff 7 person or counselor has another unrelated staff assignment, 8 only the portion of the staff person’s or counselor’s time 9 that is related to the program or alternative school may 10 be charged to the program or school. For each such staff 11 person or counselor who works part time with students who 12 are participating in a program or alternative school, the 13 school district shall have the authority to designate the 14 portion of the staff person’s or counselor’s time and the 15 corresponding amount of salary and benefits that is related 16 to the program or alternative school and shall include 17 such designation as part of the program plan under section 18 257.38, if applicable. For purposes of this paragraph, if 19 an alternative setting is necessary to provide for a program 20 which is offered at a location off school grounds and which 21 is intended to serve student needs by improving relationships 22 and connections to school, decreasing truancy and tardiness, 23 providing opportunities for course credit recovery, or helping 24 students identified as at risk to accelerate through multiple 25 grade levels of achievement within a shortened time frame, the 26 tuition costs for a student identified as at risk shall be 27 considered an appropriate use of the program funding under this 28 section . 29 b. Professional development for all teachers , counselors, 30 and staff working with at-risk students under a program or an 31 alternative school setting. 32 Sec. 6. Section 257.41, subsection 2, Code 2017, is amended 33 by adding the following new paragraphs: 34 NEW PARAGRAPH . d. Costs incurred for a program intended 35 -3- LSB 2175HV (2) 87 md/jh/sc 3/ 11

H.F. 564 to address high rates of absenteeism, truancy, or frequent 1 tardiness. 2 NEW PARAGRAPH . e. Costs incurred for programs authorized 3 under section 257.11, subsection 4, paragraph “d” . 4 Sec. 7. EFFECTIVE UPON ENACTMENT. This division of this 5 Act, being deemed of immediate importance, takes effect upon 6 enactment. 7 Sec. 8. APPLICABILITY. This division of this Act applies to 8 school budget years beginning on or after July 1, 2017. 9 DIVISION III 10 SCHOOL DISTRICT FLEXIBILITY 11 Sec. 9. Section 257.10, Code 2017, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 13. Deference to school districts. 14 a. When exercising authority to carry out an agency 15 action, as defined in section 17A.2, or to perform an activity 16 or make a decision specified in section 17A.2, subsection 17 11, paragraphs “a” through “l” , if applicable, related to 18 the provisions of subsections 9, 10, and 11, including the 19 expenditure of funds received by school districts under 20 subsections 9, 10, and 11, the department of education, the 21 director of the department of education, and the state board 22 of education shall carry out, perform, or make such agency 23 action, activity, or decision in a manner that gives deference 24 to decisions of school districts’ boards of directors, promotes 25 flexibility for school districts, and minimizes intrusions into 26 school district operations and decision making by boards of 27 directors. 28 b. (1) In addition to paragraph “a” , the department of 29 education, the director of the department of education, and 30 the state board of education shall not issue guidance related 31 to the provisions of subsections 9, 10, and 11, including 32 the expenditure of funds received by a school district under 33 subsections 9, 10, and 11, that is inconsistent with any 34 statute, rule, or other legal authority or that imposes any 35 -4- LSB 2175HV (2) 87 md/jh/sc 4/ 11

H.F. 564 legally binding obligations or duties upon any person unless 1 such legally binding obligations or duties are required 2 or reasonably implied by any statute, rule, or other legal 3 authority. Guidance issued in violation of this paragraph “b” 4 shall not be deemed to be legally binding. 5 (2) For the purposes of this paragraph “b” , “guidance” means 6 a document or statement issued by the department of education, 7 the director of the department of education, or the state 8 board of education that purports to interpret a law, a rule, 9 or other legal authority and is designed to provide advice 10 or direction to a person regarding the implementation of or 11 compliance with the law, the rule, or the other legal authority 12 being interpreted. “Guidance” does not include any action, 13 activity, or decision governed by paragraph “a” , a document or 14 statement required by federal law or a court, or a document or 15 statement issued in the course of a contested case proceeding, 16 an administrative proceeding, or a judicial proceeding to which 17 the department, the state board, or the director is a party. 18 Sec. 10. EFFECTIVE UPON ENACTMENT. This division of this 19 Act, being deemed of immediate importance, takes effect upon 20 enactment. 21 Sec. 11. APPLICABILITY. This division of this Act applies 22 to school budget years beginning on or after July 1, 2017. 23 DIVISION IV 24 PRESCHOOL PROGRAM 25 Sec. 12. Section 256C.4, subsection 1, paragraph e, Code 26 2017, is amended to read as follows: 27 e. Preschool foundation aid funding shall not be used for 28 the costs of constructing a facility in connection with an 29 approved local program. Preschool foundation aid funding may 30 be used by approved local programs and community providers 31 for any purpose determined by the board of directors of the 32 school district to meet standards for high-quality preschool 33 instruction and for purposes that directly or indirectly 34 benefit students enrolled in the approved local program, 35 -5- LSB 2175HV (2) 87 md/jh/sc 5/ 11

H.F. 564 including but not limited to professional development for 1 preschool teachers, for instructional equipment and supplies , 2 for material and equipment designed to develop pupils’ large 3 and small motor skills, translation services, playground 4 equipment and repair costs, food and beverages used by children 5 in the approved local program, facility rental fees, and for 6 other direct costs that enhance the approved local program, 7 including by contracting with community partners for any 8 such services . Preschool foundation aid funding may be used 9 by approved local programs for the costs of transportation 10 involving children participating in the preschool program. 11 The costs of transporting other children associated with the 12 preschool program or transported as provided in section 256C.3, 13 subsection 3 , paragraph “h” , may be prorated by the school 14 district. Preschool foundation aid funding received by an 15 approved local program that remain unexpended or unobligated 16 at the end of a fiscal year shall be used to build the approved 17 local program’s preschool program capacity in the next 18 succeeding fiscal year. 19 Sec. 13. EFFECTIVE UPON ENACTMENT. This division of this 20 Act, being deemed of immediate importance, takes effect upon 21 enactment. 22 Sec. 14. APPLICABILITY. This division of this Act applies 23 to school budget years beginning on or after July 1, 2017. 24 DIVISION V 25 PHYSICAL PLANT AND EQUIPMENT LEVY 26 Sec. 15. Section 298.3, subsection 1, paragraph i, Code 27 2017, is amended to read as follows: 28 i. The purchase of transportation equipment for 29 transporting students and the repair of such transportation 30 equipment if the cost of the repair exceeds two thousand five 31 hundred dollars . For the purposes of this paragraph, “repair” 32 means restoring an existing item of equipment to its original 33 condition, as near as may be, after gradual obsolescence or 34 physical and functional depreciation due to wear and tear, 35 -6- LSB 2175HV (2) 87 md/jh/sc 6/ 11

H.F. 564 corrosion and decay, or partial destruction, and includes 1 maintenance of an item of equipment. 2 Sec. 16. EFFECTIVE UPON ENACTMENT. This division of this 3 Act, being deemed of immediate importance, takes effect upon 4 enactment. 5 Sec. 17. APPLICABILITY. This division of this Act applies 6 to school budget years beginning on or after July 1, 2017. 7 DIVISION VI 8 GIFTED AND TALENTED PROGRAMS 9 Sec. 18. Section 257.43, Code 2017, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 7A. Proposed expenditures for the purposes 12 authorized in section 257.46, subsection 2A. 13 Sec. 19. Section 257.46, Code 2017, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 2A. For budget years beginning on or 16 after July 1, 2017, if the program goals, objectives, and 17 needs of gifted and talented children are satisfied, the 18 budget of an approved gifted and talented children program 19 may include expenditures and purposes that provide gifted and 20 talented programming or activities to those pupils who are not 21 identified as gifted and talented. 22 Sec. 20. EFFECTIVE UPON ENACTMENT. This division of this 23 Act, being deemed of immediate importance, takes effect upon 24 enactment. 25 DIVISION VII 26 STUDENT ACTIVITY FUND 27 Sec. 21. Section 298A.8, Code 2017, is amended to read as 28 follows: 29 298A.8 Student activity fund. 30 1. The student activity fund is a special revenue fund. 31 A student activity fund must be established in any school 32 corporation receiving money from student-related activities 33 such as admissions, activity fees, student dues, student 34 fund-raising events, or other student-related cocurricular or 35 -7- LSB 2175HV (2) 87 md/jh/sc 7/ 11

H.F. 564 extracurricular activities. Moneys in this fund shall be used 1 to support only the cocurricular program defined in department 2 of education administrative rules. 3 2. For school budget years beginning on or after July 1, 4 2017, the board of directors of a school corporation may, 5 by board resolution, transfer from the school corporation’s 6 general fund to the student activity fund an amount necessary 7 to purchase protective and safety equipment required for any 8 extracurricular interscholastic athletic contest or competition 9 that is sponsored or administered by an organization as defined 10 in section 280.13. 11 Sec. 22. EFFECTIVE UPON ENACTMENT. This division of this 12 Act, being deemed of immediate importance, takes effect upon 13 enactment. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to school district funding and authorized 18 expenditures. 19 Division I of the bill relates to the list of purposes for 20 which school districts and area education agencies may expend 21 funds that are calculated and paid to school districts and 22 area education agencies as supplemental aid for professional 23 development under the state school foundation program. 24 Currently, the funds received must be used to implement 25 the professional development provisions of the teacher 26 career paths and leadership roles specified in Code section 27 284.15. To the list of permissible professional development 28 expenditures currently in statute, the bill adds textbooks 29 and curriculum materials used for classroom purposes if 30 such textbooks and curriculum materials include professional 31 development and administering assessments pursuant to Code 32 section 256.7(21)(b)(1) and (2), if such assessments include 33 professional development. 34 The bill also prohibits the department of education from 35 -8- LSB 2175HV (2) 87 md/jh/sc 8/ 11

H.F. 564 requiring a school district or area education agency to 1 allocate a specific amount or percentage of professional 2 development moneys for professional development related to 3 implementation of the core curriculum. 4 Division I of the bill takes effect upon enactment and 5 applies to school budget years beginning on or after July 1, 6 2017. 7 Division II of the bill removes the 5-percent limit on the 8 amount of at-risk funding that a school district may use for 9 purposes of providing district-wide or building-wide at-risk 10 and dropout prevention programming targeted to pupils who are 11 not deemed at risk and authorizes such programming that is 12 grade-specific. The bill also adds guidance counselors to 13 the list of staff for which salary and benefits may be paid 14 with at-risk and dropout prevention program funding and adds 15 programs to address high rates of absenteeism, truancy, or 16 frequent tardiness to the list of authorized expenditures. 17 Division II of the bill takes effect upon enactment and 18 applies to school budget years beginning on or after July 1, 19 2017. 20 Division III of the bill provides that when exercising 21 authority to carry out an agency action, activity, or decision 22 related to categorical funding under the teacher salary 23 supplement, the professional development supplement, and the 24 early intervention supplement, the department of education, the 25 director of the department of education, and the state board 26 of education are required to engage in such agency action, 27 activity, or decision in a manner that gives deference to 28 decisions of a school district’s board of directors, promotes 29 flexibility for school districts, and minimizes intrusions into 30 school district operations and decision making of boards of 31 directors. In addition, the bill provides that the department 32 of education, the director of the department of education, and 33 the state board of education shall not issue guidance regarding 34 such categorical funding supplements that is inconsistent with 35 -9- LSB 2175HV (2) 87 md/jh/sc 9/ 11

H.F. 564 any statute, rule, or other legal authority or that imposes 1 any legally binding obligations or duties upon any person 2 unless such legally binding obligations or duties are required 3 or reasonably implied by any statute, rule, or other legal 4 authority. Guidance issued in violation of division III of the 5 bill shall not be deemed to be legally binding. 6 Division III of the bill takes effect upon enactment and 7 applies to school budget years beginning on or after July 1, 8 2017. 9 Division IV of the bill specifies that preschool foundation 10 aid funding may be used by approved local programs and 11 community providers for any purpose determined by the board 12 of directors of the school district to meet standards for 13 high-quality preschool instruction and for purposes that 14 directly or indirectly benefit students enrolled in the 15 approved local program, instructional supplies, translation 16 services, playground equipment and repair costs, food and 17 beverages used by children in the approved local program, 18 facility rental fees, and for other direct costs that enhance 19 the approved local program, including by contracting with 20 community partners for any such services. 21 Division IV of the bill takes effect upon enactment and 22 applies to school budget years beginning on or after July 1, 23 2017. 24 Current Code section 298.3 authorizes school districts to 25 use physical plant and equipment levy revenues for the repair 26 of transportation equipment if the cost of the repair exceeds 27 $2,500. Division V of the bill removes the $2,500 repair cost 28 limitation. 29 Division V of the bill takes effect upon enactment and 30 applies to school budget years beginning on or after July 1, 31 2017. 32 Current Code sections 257.42 through 257.46 establish 33 requirements and funding for gifted and talented programs 34 established by school districts. Division VI of the bill 35 -10- LSB 2175HV (2) 87 md/jh/sc 10/ 11

H.F. 564 provides that for budget years beginning on or after July 1, 1 2017, if the program goals, objectives, and needs of gifted 2 and talented children are satisfied, the budget of an approved 3 gifted and talented children program may include expenditures 4 and purposes that provide district-wide or building-wide gifted 5 and talented programming or activities to those pupils who are 6 not identified as gifted and talented. The bill also requires 7 the gifted and talented program plans submitted by each school 8 district to the department of education to include information 9 on the additional types of expenditures authorized in the bill. 10 Division VI takes effect upon enactment. 11 Current Code section 298A.8 requires a student activity 12 fund to be established in any school corporation receiving 13 moneys from student-related activities such as admissions, 14 activity fees, student dues, student fund-raising events, 15 or other student-related cocurricular or extracurricular 16 activities. Moneys in the student activity fund must be used 17 to support only the cocurricular program defined in department 18 of education administrative rules. 19 Under division VII of the bill, for school budget years 20 beginning on or after July 1, 2017, the board of directors of a 21 school corporation may, by board resolution, transfer from the 22 school corporation’s general fund to the student activity fund 23 an amount necessary to purchase protective and safety equipment 24 required for any extracurricular interscholastic athletic 25 contest or competition that is sponsored or administered by an 26 organization as defined in Code section 280.13. 27 Division VII of the bill takes effect upon enactment. 28 -11- LSB 2175HV (2) 87 md/jh/sc 11/ 11