H.F. _____ 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 6139YC (7) 87 md/jh 1/ 11

H.F. _____ 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 20 that will be implemented first upon approval adoption of the 21 request program plan . If a district is requesting to use a 22 modified supplemental amount to finance the program, the school 23 district shall not identify more than five percent of its 24 budget enrollment for the budget year as returning dropouts and 25 potential dropouts. 26 Sec. 7. Section 257.40, Code 2018, is amended to read as 27 follows: 28 257.40 Approval of programs for at-risk pupils, alternative 29 programs and schools, and returning dropouts and dropout 30 prevention requests for modified supplement amounts for adopted 31 program plans . 32 The board of directors of a school district requesting 33 to use a modified supplemental amount for costs in excess of 34 the funding received under section 257.11, subsection 4 , for 35 -2- LSB 6139YC (7) 87 md/jh 2/ 11

H.F. _____ programs for at-risk students, secondary students who attend 1 alternative programs and alternative schools, or returning 2 dropouts and dropout prevention shall submit requests for 3 a modified supplemental amount, including budget costs, to 4 the department school budget review committee not later than 5 December 15 of the year preceding the budget year during which 6 the program will be offered. The department school budget 7 review committee shall review the request and shall prior to 8 January 15 either grant approval for the request or if the 9 request complies with the school district’s adopted program 10 plan. Only if the request violates the school district’s 11 adopted program plan may the school budget review committee 12 return the request for approval with comments of the department 13 committee included. An unapproved request for a program may 14 be resubmitted with modifications to the department school 15 budget review committee not later than February 1. Not later 16 than February 15, the department school budget review committee 17 shall notify the department of management and the school budget 18 review committee of the names of the school districts for which 19 programs using a modified supplemental amount for funding have 20 been approved and the approved budget of each program listed 21 separately for each school district having an approved request. 22 Sec. 8. Section 257.41, subsection 1, Code 2018, is amended 23 to read as follows: 24 1. Budget. The budget of an approved adopted program for 25 at-risk students, secondary students who attend alternative 26 programs or alternative schools, or returning dropouts and 27 dropout prevention for a school district, after subtracting 28 funds received under section 257.11, subsection 4 , paragraphs 29 “a” through “c” , and from other sources for that purpose, 30 including any previous carryover or amount designated from the 31 school district’s flexibility account under section 298A.2, 32 subsection 2 , shall be funded annually on a basis of one-fourth 33 or more from the district cost of the school district and up to 34 three-fourths through establishment of a modified supplemental 35 -3- LSB 6139YC (7) 87 md/jh 3/ 11

H.F. _____ amount. Annually, the department of management shall establish 1 a modified supplemental amount for each such school district 2 equal to the difference between the approved budget for the 3 program for that district and the sum of the amount funded from 4 the district cost of the school district plus funds received 5 under section 257.11, subsection 4 , and from other sources 6 for that purpose, including any previous carryover or amount 7 designated from the school district’s flexibility account under 8 section 298A.2, subsection 2 . 9 Sec. 9. Section 257.41, subsection 2, unnumbered paragraph 10 1, Code 2018, is amended to read as follows: 11 Appropriate uses of the funding for an approved adopted 12 program include but are not limited to the following: 13 Sec. 10. Section 257.41, subsection 2, paragraph a, Code 14 2018, is amended to read as follows: 15 a. Salary and benefits for instructional staff, 16 administrative staff, instructional support staff, guidance 17 counselors, and school-based youth services staff who are 18 working with students who are participating in at-risk 19 or dropout prevention programs, alternative programs, and 20 alternative schools, in a traditional or alternative setting, 21 if the staff person’s or counselor’s time is dedicated to 22 working with such students in order to provide services beyond 23 those which are provided by the school district to students who 24 are not participating in such programs or alternative schools. 25 However, if the staff person or counselor works part-time with 26 students who are participating in a program or alternative 27 school and the staff person or counselor has another unrelated 28 staff assignment, only the portion of the staff person’s or 29 counselor’s time that is related to the program or alternative 30 school may be charged to the program or school. For each such 31 staff person or counselor who works part time with students 32 who are participating in a program or alternative school, 33 the school district shall have the authority to designate 34 the portion of the staff person’s or counselor’s time and 35 -4- LSB 6139YC (7) 87 md/jh 4/ 11

H.F. _____ the corresponding amount of salary and benefits that is 1 related to the program or alternative school and shall include 2 such designation as part of the program plan under section 3 257.38 , if applicable. For purposes of this paragraph, if 4 an alternative setting is necessary to provide for a program 5 which is offered at a location off school grounds and which 6 is intended to serve student needs by improving relationships 7 and connections to school, decreasing truancy and tardiness, 8 providing opportunities for course credit recovery, or helping 9 students identified as at risk to accelerate through multiple 10 grade levels of achievement within a shortened time frame, the 11 tuition costs for a student identified as at risk shall be 12 considered an appropriate use of the program funding under this 13 section . 14 Sec. 11. Section 257.41, subsection 2, Code 2018, is amended 15 by adding the following new paragraphs: 16 NEW PARAGRAPH . f. Any purpose determined by the board of 17 directors to meet the standards for the adopted program. 18 NEW PARAGRAPH . g. Any purpose determined by the board 19 of directors that directly or indirectly benefits students 20 participating in the adopted program. 21 Sec. 12. Section 284.6, subsections 8 and 9, Code 2018, are 22 amended to read as follows: 23 8. For each year in which a school district receives funds 24 calculated and paid to school districts for professional 25 development pursuant to section 257.10, subsection 10 , or 26 section 257.37A, subsection 2 , the school district shall create 27 quality professional development opportunities. Not less than 28 thirty-six hours in the school calendar, held outside of the 29 minimum school day, shall be set aside during nonpreparation 30 time or designated professional development time to allow 31 practitioners to collaborate with each other to deliver 32 educational programs and assess student learning, or to engage 33 in peer review pursuant to section 284.8, subsection 1 . The 34 funds may be used for purposes determined by the board of 35 -5- LSB 6139YC (7) 87 md/jh 5/ 11

H.F. _____ directors to implement the professional development provisions 1 of the teacher career paths and leadership roles specified 2 in section 284.15 , including but not limited to providing 3 professional development to teachers, including additional 4 salaries for time beyond the normal negotiated agreement; 5 activities and pay to support a beginning teacher mentoring 6 and induction program that meets the requirements of section 7 284.5 ; pay for substitute teachers, professional development 8 materials, speakers, and professional development content; 9 textbooks and curriculum materials used for classroom purposes 10 if such textbooks and curriculum materials include professional 11 development; administering assessments pursuant to section 12 256.7, subsection 21 , paragraph “b” , subparagraphs (1) and 13 (2), if such assessments include professional development; and 14 costs associated with implementing the individual professional 15 development plans. The use of the funds shall be balanced 16 between school district, attendance center, and individual 17 professional development plans, making every reasonable effort 18 to provide equal access to all teachers. 19 9. Moneys received pursuant to section 257.10, subsection 20 10 , or section 257.37A, subsection 2 , shall be maintained 21 as a separate listing within a school district’s or area 22 education agency’s budget for funds received and expenditures 23 made pursuant to this subsection . The department shall not 24 require a school district or area education agency to allocate 25 a specific amount or percentage of moneys received pursuant to 26 section 257.10, subsection 10 , or section 257.37A, subsection 27 2 , for professional development related to implementation of 28 the core curriculum under section 256.7, subsection 26 . A 29 school district shall certify to the department of education 30 how the school district allocated the funds and that moneys 31 received under this subsection were used to supplement, not 32 supplant, the professional development opportunities the school 33 district would otherwise make available. For budget years 34 beginning on or after July 1, 2017, all or a portion of the 35 -6- LSB 6139YC (7) 87 md/jh 6/ 11

H.F. _____ moneys received pursuant to section 257.10, subsection 10 , that 1 remain unexpended and unobligated at the end of a fiscal year 2 may, pursuant to section 257.10, subsection 10 , paragraph “d” , 3 be transferred for deposit in the school district’s flexibility 4 account established under section 298A.2, subsection 2 . 5 Sec. 13. Section 298A.8, subsection 2, Code 2018, is amended 6 to read as follows: 7 2. For school budget years beginning on or after July 1, 8 2016, the board of directors of a school corporation may, 9 by board resolution, transfer from the school corporation’s 10 general fund to the student activity fund an amount necessary 11 to purchase or recondition protective and safety equipment 12 required for any extracurricular interscholastic athletic 13 contest or competition that is sponsored or administered by an 14 organization as defined in section 280.13 . 15 Sec. 14. RESCINDING AND ADOPTING OF RULES. Pursuant to the 16 requirements of section 256.9A, as enacted in this Act, the 17 department of education and the state board of education shall 18 rescind 281 IAC ch. 98, financial management of categorical 19 funding, and any other rules in effect on the effective date 20 of this Act relating to the use of categorical funding by 21 school districts and area education agencies. As soon as 22 practicable following the effective date of this Act, the 23 department of education and the state board of education shall 24 adopt new rules relating to the financial management and 25 use of categorical funding received by school districts and 26 area education agencies and such rules shall comply with and 27 implement the requirements of section 274.3. 28 Sec. 15. EFFECTIVE DATE. The following, being deemed of 29 immediate importance, take effect upon enactment: 30 1. The section of this Act enacting section 256.9A. 31 2. The section of this Act amending section 257.10, 32 subsection 11. 33 3. The section of this Act amending section 284.6, 34 subsections 8 and 9. 35 -7- LSB 6139YC (7) 87 md/jh 7/ 11

H.F. _____ 4. The section of this Act amending section 298A.8, 1 subsection 2. 2 5. The section of this Act relating to the implementation of 3 section 256.9A and requiring the rescission of 281 IAC ch. 98. 4 Sec. 16. APPLICABILITY. The following apply to school 5 budget years beginning on or after July 1, 2018: 6 1. The section of this Act enacting section 256.9A. 7 2. The section of this Act amending section 257.10, 8 subsection 11. 9 3. The section of this Act amending section 284.6, 10 subsections 8 and 9. 11 4. The section of this Act amending section 298A.8, 12 subsection 2. 13 Sec. 17. APPLICABILITY. The following apply to school 14 budget years beginning on or after July 1, 2019: 15 1. The section of this Act amending section 257.31, 16 subsection 16. 17 2. The section of this Act amending section 257.38, 18 subsection 1, unnumbered paragraph 1. 19 3. The section of this Act amending section 257.38, 20 subsection 1, paragraph “j”. 21 4. The section of this Act amending section 257.38, 22 subsection 2. 23 5. The section of this Act amending section 257.40. 24 6. The section of this Act amending section 257.41, 25 subsection 1. 26 7. The section of this Act amending section 257.41, 27 subsection 2, unnumbered paragraph 1. 28 8. The section of this Act amending section 257.41, 29 subsection 2, paragraph “a”. 30 9. The section of this Act enacting section 257.41, 31 subsection 2, paragraphs “f” and “g”. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -8- LSB 6139YC (7) 87 md/jh 8/ 11

H.F. _____ This bill relates to the funding and use of funding for 1 various education programs. 2 Current Code section 257.10, subsection 11, establishes an 3 early intervention categorical funding supplement for school 4 districts and requires the use of such funds to comply with 5 the requirements of Code chapter 256D (Iowa early intervention 6 block grant program). Code chapter 256D requires school 7 districts to expend funds for class size reduction and for 8 uses intended to achieve a higher level of student success 9 in the basic skills, especially reading. Under current law, 10 Code chapter 256D is repealed effective July 1, 2018. The 11 bill changes the purposes for which the early intervention 12 categorical funding supplement may be expended to be any school 13 general fund purpose. 14 The section of the bill amending Code section 257.10, 15 subsection 11, applies to school budget years beginning on or 16 after July 1, 2018. 17 Current Code section 284.6 provides that funds received 18 by school districts for professional development pursuant to 19 Code section 257.10, subsection 10, or Code section 257.37A, 20 subsection 2, may be used to implement the professional 21 development provisions of the teacher career paths and 22 leadership roles. The bill amends the provisions governing use 23 of such funds to provide that the permissible uses are those 24 purposes determined by the board of directors to implement 25 the professional development provisions of the teacher career 26 paths and leadership roles. The bill also strikes a provision 27 that requires moneys received pursuant to Code section 257.10, 28 subsection 10, or Code section 257.37A, subsection 2, to be 29 maintained as a separate listing within a school district’s 30 or area education agency’s budget for funds received and 31 expenditures made from such moneys. 32 Under current law, school districts are required to submit 33 to the department of education for approval program plans and 34 requests for a modified supplemental amount for programs for 35 -9- LSB 6139YC (7) 87 md/jh 9/ 11

H.F. _____ at-risk students, secondary students who attend alternative 1 programs and alternative schools, and returning dropouts and 2 dropout prevention. The bill strikes the requirement for 3 submission to and approval by the department of education and 4 instead allows such program plans to be approved by resolution 5 of the school district board of directors. The bill also 6 removes other factors required by the department of education 7 from the list of requirements for program plans. When the 8 board of directors of a school district requests to use a 9 modified supplemental amount for costs for the excess cost 10 of an adopted program, the bill requires such a request to 11 be submitted to the school budget review committee instead 12 of the department of education. Requests are required to be 13 approved if the request complies with the school district’s 14 adopted program plan. Only if the request violates the 15 school district’s adopted program plan may the school budget 16 review committee return the request to the school district for 17 revision and resubmission. 18 The bill adds the salary and benefits of administrative 19 staff who are working with students who are participating 20 in at-risk or dropout prevention programs, alternative 21 programs, and alternative schools, in a traditional or 22 alternative setting, to the list of permissible uses of 23 funding. In addition, the bill authorizes the expenditure 24 of such funding for any purpose determined by the board of 25 directors to meet the standards for the adopted program and 26 any purpose determined by the board of directors that directly 27 or indirectly benefits students participating in the adopted 28 program. 29 Current Code section 298A.8 allows a school district board 30 of directors, by resolution, to transfer funds from the school 31 district’s general fund to the student activity fund an amount 32 necessary to purchase protective and safety equipment required 33 for any extracurricular interscholastic athletic contest 34 or competition. The bill adds the reconditioning of such 35 -10- LSB 6139YC (7) 87 md/jh 10/ 11

H.F. _____ protective and safety equipment to the list of purposes for 1 which such a transfer is permitted. 2 The bill enacts Code section 256.9A, which prohibits the 3 department of education, the state board of education, and the 4 director of the department of education from issuing guidance, 5 as defined in the bill, that imposes a legal obligation or 6 duty on a person unless the obligation or duty is required or 7 reasonably implied by law, rule, or other legal authority. 8 Guidance issued in violation of the prohibition is not legally 9 binding. This provision does not apply to administrative 10 rules, declaratory orders, a document or statement required by 11 federal law or a court, or a document or statement issued in 12 the course of an administrative or judicial proceeding to which 13 the department of education, the state board of education, or 14 the director of the department of education is a party. 15 Pursuant to the requirements of new Code section 256.9A, the 16 department of education and the state board of education shall 17 rescind 281 Iowa administrative code, chapter 98 (financial 18 management of categorical funding), and any other rules in 19 effect on the effective date of this bill relating to the use 20 of categorical funding by school districts and area education 21 agencies. As soon as practicable following the effective date 22 of this bill, the department of education and the state board 23 of education shall adopt new rules relating to the financial 24 management and use of categorical funding received by school 25 districts and area education agencies and such rules shall 26 comply with and implement the requirements of Code section 27 274.3. 28 The bill includes various effective date and applicability 29 date provisions. 30 -11- LSB 6139YC (7) 87 md/jh 11/ 11