H.F. _____ 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 2175YC (7) 87 md/jh/sc 1/ 9

H.F. _____ 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 2175YC (7) 87 md/jh/sc 2/ 9

H.F. _____ 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 that 9 is related to the program or alternative school may be charged 10 to the program or school. For purposes of this paragraph, if 11 an alternative setting is necessary to provide for a program 12 which is offered at a location off school grounds and which 13 is intended to serve student needs by improving relationships 14 and connections to school, decreasing truancy and tardiness, 15 providing opportunities for course credit recovery, or helping 16 students identified as at risk to accelerate through multiple 17 grade levels of achievement within a shortened time frame, the 18 tuition costs for a student identified as at risk shall be 19 considered an appropriate use of the program funding under this 20 section . 21 b. Professional development for all teachers , counselors, 22 and staff working with at-risk students under a program or an 23 alternative school setting. 24 Sec. 6. Section 257.41, subsection 2, Code 2017, is amended 25 by adding the following new paragraphs: 26 NEW PARAGRAPH . d. Costs incurred for a program intended 27 to address high rates of absenteeism, truancy, or frequent 28 tardiness. 29 NEW PARAGRAPH . e. Costs incurred for programs authorized 30 under section 257.11, subsection 4, paragraph “d” . 31 Sec. 7. EFFECTIVE UPON ENACTMENT. This division of this 32 Act, being deemed of immediate importance, takes effect upon 33 enactment. 34 Sec. 8. APPLICABILITY. This division of this Act applies to 35 -3- LSB 2175YC (7) 87 md/jh/sc 3/ 9

H.F. _____ school budget years beginning on or after July 1, 2017. 1 DIVISION III 2 SCHOOL DISTRICT FLEXIBILITY 3 Sec. 9. Section 257.10, Code 2017, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 13. Deference to school districts. When 6 exercising authority to carry out an agency action, as defined 7 in section 17A.2, or any applicable activity or decision 8 specified in section 17A.2, subsection 11, paragraphs “a” 9 through “l” , related to the provisions of subsections 9, 10, 11, 10 and 12, including the expenditure of funds received by a school 11 district under subsections 9, 10, 11, and 12, the department 12 of education shall engage in such agency action, activity, or 13 decision in a manner that gives deference to decisions of a 14 school district’s board of directors, promotes flexibility for 15 school districts, and minimizes intrusions into school district 16 operations and decision making by boards of directors. In 17 addition, in any such agency action, activity, or decision, the 18 burden shall be on the department of education to demonstrate 19 that any decision or action of a school district’s board of 20 directors is an irrational, illogical, or wholly unjustifiable 21 interpretation of a provision of law. 22 Sec. 10. EFFECTIVE UPON ENACTMENT. This division of this 23 Act, being deemed of immediate importance, takes effect upon 24 enactment. 25 Sec. 11. APPLICABILITY. This division of this Act applies 26 to school budget years beginning on or after July 1, 2017. 27 DIVISION IV 28 PRESCHOOL PROGRAM 29 Sec. 12. Section 256C.4, subsection 1, paragraph e, Code 30 2017, is amended to read as follows: 31 e. Preschool foundation aid funding shall not be used for 32 the costs of constructing a facility in connection with an 33 approved local program. Preschool foundation aid funding may 34 be used by approved local programs and community providers 35 -4- LSB 2175YC (7) 87 md/jh/sc 4/ 9

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

H.F. _____ hundred dollars . For the purposes of this paragraph, “repair” 1 means restoring an existing item of equipment to its original 2 condition, as near as may be, after gradual obsolescence or 3 physical and functional depreciation due to wear and tear, 4 corrosion and decay, or partial destruction, and includes 5 maintenance of an item of equipment. 6 Sec. 16. EFFECTIVE UPON ENACTMENT. This division of this 7 Act, being deemed of immediate importance, takes effect upon 8 enactment. 9 Sec. 17. APPLICABILITY. This division of this Act applies 10 to school budget years beginning on or after July 1, 2017. 11 DIVISION VI 12 GIFTED AND TALENTED PROGRAMS 13 Sec. 18. Section 257.43, Code 2017, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 7A. Proposed expenditures for the purposes 16 authorized in section 257.46, subsection 2A. 17 Sec. 19. Section 257.46, Code 2017, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 2A. For budget years beginning on or 20 after July 1, 2017, if the program goals, objectives, and 21 needs of gifted and talented children are satisfied, the 22 budget of an approved gifted and talented children program 23 may include expenditures and purposes that provide gifted and 24 talented programming or activities to those pupils who are not 25 identified as gifted and talented. 26 Sec. 20. EFFECTIVE UPON ENACTMENT. This division of this 27 Act, being deemed of immediate importance, takes effect upon 28 enactment. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill relates to school district funding and authorized 33 expenditures. 34 Division I of the bill relates to the list of purposes for 35 -6- LSB 2175YC (7) 87 md/jh/sc 6/ 9

H.F. _____ which school districts and area education agencies may expend 1 funds that are calculated and paid to school districts and 2 area education agencies as supplemental aid for professional 3 development under the state school foundation program. 4 Currently, the funds received must be used to implement 5 the professional development provisions of the teacher 6 career paths and leadership roles specified in Code section 7 284.15. To the list of permissible professional development 8 expenditures currently in statute, the bill adds textbooks 9 and curriculum materials used for classroom purposes if 10 such textbooks and curriculum materials include professional 11 development and administering assessments pursuant to Code 12 section 256.7(21)(b)(1) and (2), if such assessments include 13 professional development. 14 The bill also prohibits the department of education from 15 requiring a school district or area education agency to 16 allocate a specific amount or percentage of professional 17 development moneys for professional development related to 18 implementation of the core curriculum. 19 Division I of the bill takes effect upon enactment and 20 applies to school budget years beginning on or after July 1, 21 2017. 22 Division II of the bill removes the 5-percent limit on the 23 amount of at-risk funding that a school district may use for 24 purposes of providing district-wide or building-wide at-risk 25 and dropout prevention programming targeted to pupils who are 26 not deemed at risk and authorizes such programming that is 27 grade-specific. The bill also adds guidance counselors to 28 the list of staff for which salary and benefits may be paid 29 with at-risk and dropout prevention program funding and adds 30 programs to address high rates of absenteeism, truancy, or 31 frequent tardiness to the list of authorized expenditures. 32 Division II of the bill takes effect upon enactment and 33 applies to school budget years beginning on or after July 1, 34 2017. 35 -7- LSB 2175YC (7) 87 md/jh/sc 7/ 9

H.F. _____ Division III of the bill provides that when exercising 1 authority to carry out an agency action, activity, or decision 2 related to categorical funding under the teacher salary 3 supplement, the professional development supplement, the 4 early intervention supplement, and the teacher leadership 5 supplement, the department of education is required to engage 6 in such agency action, activity, or decision in a manner that 7 gives deference to decisions of a school district’s board of 8 directors, promotes flexibility for school districts, and 9 minimizes intrusions into school district operations and 10 decision making of boards of directors. In addition, in any 11 such agency action, activity, or decision, the burden shall be 12 on the department of education to demonstrate that any decision 13 or action of a school district’s board of directors is an 14 irrational, illogical, or wholly unjustifiable interpretation 15 of a provision of law. 16 Division III of the bill takes effect upon enactment and 17 applies to school budget years beginning on or after July 1, 18 2017. 19 Division IV of the bill specifies that preschool foundation 20 aid funding may be used by approved local programs and 21 community providers for any purpose determined by the board 22 of directors of the school district to meet standards for 23 high-quality preschool instruction and for purposes that 24 directly or indirectly benefit students enrolled in the 25 approved local program, instructional supplies, translation 26 services, playground equipment and repair costs, food and 27 beverages used by children in the approved local program, 28 facility rental fees, child care, and for other direct 29 costs that enhance the approved local program, including by 30 contracting with community partners for any such services. 31 Division IV of the bill takes effect upon enactment and 32 applies to school budget years beginning on or after July 1, 33 2017. 34 Current Code section 298.3 authorizes school districts to 35 -8- LSB 2175YC (7) 87 md/jh/sc 8/ 9

H.F. _____ use physical plant and equipment levy revenues for the repair 1 of transportation equipment if the cost of the repair exceeds 2 $2,500. Division V of the bill removes the $2,500 repair cost 3 limitation. 4 Division V of the bill takes effect upon enactment and 5 applies to school budget years beginning on or after July 1, 6 2017. 7 Current Code sections 257.42 through 257.46 establish 8 requirements and funding for gifted and talented programs 9 established by school districts. Division VI of the bill 10 provides that for budget years beginning on or after July 1, 11 2017, if the program goals, objectives, and needs of gifted 12 and talented children are satisfied, the budget of an approved 13 gifted and talented children program may include expenditures 14 and purposes that provide district-wide or building-wide gifted 15 and talented programming or activities to those pupils who are 16 not identified as gifted and talented. The bill also requires 17 the gifted and talented program plans submitted by each school 18 district to the department of education to include information 19 on the additional types of expenditures authorized in the bill. 20 Division VI takes effect upon enactment. 21 -9- LSB 2175YC (7) 87 md/jh/sc 9/ 9