House Study Bill 651 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON ROGERS) A BILL FOR An Act establishing an education savings grant program for 1 pupils attending a nonpublic school, establishing an 2 education savings grant fund, providing an income tax 3 exemption, modifying and establishing charter school 4 programs, making appropriations, providing penalties, and 5 including applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5518YC (13) 87 md/jh
H.F. _____ DIVISION I 1 SHORT TITLE 2 Section 1. SHORT TITLE. This Act shall be known and may be 3 cited as the “Iowa Student Opportunity Act”. 4 DIVISION II 5 EDUCATION SAVINGS GRANTS 6 Sec. 2. Section 8.6, Code 2018, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 16. To adopt rules relating to applications 9 for an education savings grant pursuant to section 257.11B, 10 including application processing timelines and information 11 required to be submitted by a parent or guardian. 12 Sec. 3. NEW SECTION . 257.11B Education savings grant 13 program. 14 1. a. For the school budget year beginning July 1, 2019, 15 and each succeeding school budget year, the following resident 16 pupils who are attending a nonpublic school, as defined in 17 section 285.16, shall be eligible to receive an education 18 savings grant in the manner provided in this section: 19 (1) A pupil eligible to enroll in kindergarten. 20 (2) A pupil eligible to enroll in grade one through grade 21 twelve if the pupil has attended a public school for the 22 equivalent of the two immediately preceding semesters for which 23 the educational savings grant is requested and if the pupil is 24 not otherwise ineligible under this section. 25 (3) A pupil who received an education savings grant for 26 the immediately preceding school budget year, who is eligible 27 to enroll in grade one through grade twelve, and who is not 28 otherwise ineligible under this section. 29 b. Education savings grants shall be made available to 30 parents and guardians in the manner authorized under subsection 31 4, paragraph “c” , for the payment of qualified educational 32 expenses as provided in this section. 33 c. For purposes of this subsection, “resident” means the 34 same as defined in section 282.1. 35 -1- LSB 5518YC (13) 87 md/jh 1/ 44
H.F. _____ 2. a. (1) By January 31 preceding the school year for 1 which the education savings grant is requested, the parent 2 or guardian of the pupil requesting to receive an education 3 savings grant shall submit an application to the department of 4 management, on application forms developed by the department of 5 management, indicating that the parent or guardian intends to 6 enroll the pupil in a nonpublic school. 7 (2) In addition to such information deemed appropriate by 8 the department of management, the application shall require 9 certification from the nonpublic school of the pupil’s 10 enrollment for the following school year. 11 b. By March 1 preceding the school year for which the 12 education savings grant is requested, the department of 13 management shall notify the parent or guardian of each pupil 14 approved for the following school year to receive an education 15 savings grant and the amount of the education savings grant for 16 the pupil. 17 c. Education savings grants shall only be approved for one 18 school year and applications must be submitted annually for 19 education savings grants in subsequent school years. 20 3. The department of management shall assign each pupil an 21 education savings grant in an amount equal to ninety percent of 22 the sum of all the following for the same school budget year: 23 a. The product of the pupil’s weighted enrollment that 24 would otherwise be assigned to the pupil under this chapter if 25 the pupil was enrolled in the pupil’s district of residence 26 multiplied by the difference between eighty-seven and 27 five-tenths percent of the regular program state cost per pupil 28 and the statewide average foundation property tax per pupil. 29 b. The total teacher salary supplement district cost per 30 pupil for the pupil’s district of residence. 31 c. The total professional development supplement district 32 cost per pupil for the pupil’s district of residence. 33 d. The total early intervention supplement district cost per 34 pupil for the pupil’s district of residence. 35 -2- LSB 5518YC (13) 87 md/jh 2/ 44
H.F. _____ e. The total area education agency teacher salary supplement 1 district cost per pupil for the pupil’s district of residence. 2 f. The total area education agency professional development 3 supplement district cost per pupil for the pupil’s district of 4 residence. 5 g. The total teacher leadership supplement district cost per 6 pupil for the pupil’s district of residence. 7 4. An education savings grant fund is created in the state 8 treasury under the control of the department of management 9 consisting of moneys appropriated to the department of 10 management for the purpose of providing education savings 11 grants under this section. For the fiscal year commencing July 12 1, 2019, and each succeeding fiscal year, there is appropriated 13 from the general fund of the state to the department of 14 management to be credited to the fund the amount necessary 15 to pay all education savings grants approved for that fiscal 16 year. The director of the department of management has all 17 powers necessary to carry out and effectuate the purposes, 18 objectives, and provisions of this section pertaining to the 19 fund, including the power to do all of the following: 20 a. Make and enter into contracts necessary for the 21 administration of the fund. 22 b. Procure insurance against any loss in connection with the 23 assets of the fund or require a surety bond. 24 c. Contract with a private financial management firm to 25 manage the fund, in collaboration with the treasurer of state, 26 including providing for the disbursement of education savings 27 grants in the form of an electronic debit card or checks that 28 are payable directly from the pupil’s account within the fund. 29 d. Conduct audits or other review necessary to properly 30 administer the program. 31 e. Adopt rules for the administration of the fund and 32 accounts within the fund. 33 5. a. For each pupil approved for an education savings 34 grant, the department of management shall establish an account 35 -3- LSB 5518YC (13) 87 md/jh 3/ 44
H.F. _____ for that pupil in the education savings grant fund. The amount 1 of the pupil’s education savings grant shall be deposited 2 into the pupil’s account on July 1, and such amount shall be 3 immediately available for the payment of qualified educational 4 expenses incurred by the parent or guardian for the pupil 5 during that fiscal year using the payment method authorized 6 under subsection 4, paragraph “c” . 7 b. A nonpublic school that accepts payment from a parent or 8 guardian using funds from a pupil’s account in the education 9 savings grant fund shall not refund, rebate, or share any 10 portion of such payment with the parent, guardian, or pupil. 11 c. Moneys remaining in a pupil’s account upon conclusion 12 of the fiscal year shall remain in the pupil’s account in the 13 education savings grant fund for the payment of qualified 14 educational expenses in future fiscal years during which the 15 pupil participates in the program or for the payment of higher 16 education costs as provided under subsection 8. 17 6. a. For purposes of this section, “qualified educational 18 expenses” includes tuition and fees at a nonpublic school, 19 textbooks, fees or payments for educational therapies, 20 including tutoring or cognitive skills training, curriculum 21 fees and materials for a course of study for a specific subject 22 matter or grade level, tuition or fees for nonpublic online 23 education programs, education materials and services for pupils 24 with disabilities, including the cost of paraprofessionals 25 and assistants who are trained in accordance with state law, 26 standardized test fees, higher education costs, as defined in 27 section 12D.1, excluding room and board expenses, and other 28 expenses incurred by the parent or guardian that are directly 29 related to the education of the pupil at a nonpublic school, 30 including a nonpublic school accredited by an independent 31 accrediting agency approved by the department of education. 32 b. “Qualified educational expenses” does not include 33 transportation costs for the pupil, the cost of food or 34 refreshments consumed by the pupil, the cost of clothing for 35 -4- LSB 5518YC (13) 87 md/jh 4/ 44
H.F. _____ the pupil, or the cost of disposable materials, including 1 but not limited to paper, notebooks, pencils, pens, and art 2 supplies. 3 7. A person who makes a false claim for the purpose 4 of obtaining an education savings grant provided for in 5 this section or who knowingly receives the grant or makes a 6 payment from an account within the education savings grant 7 fund without being legally entitled to do so is guilty of a 8 fraudulent practice under chapter 714. The false claim for an 9 education savings grant or a payment from an account shall be 10 disallowed. If amounts from the grant have been disbursed from 11 the applicable account in the education savings grant fund, the 12 department of management shall initiate legal proceedings to 13 recover such amounts. A parent or guardian, or a pupil for 14 purposes of subsection 8, who commits a fraudulent practice 15 under this section is prohibited from participating in the 16 education savings grant program in the future. 17 8. a. For each pupil with a positive balance in the pupil’s 18 account in the education savings grant fund upon graduation 19 from high school, the department of management shall maintain 20 the account in the fund until the pupil is twenty-three years 21 of age. Following graduation from high school until the pupil 22 is twenty-three years of age, moneys in the pupil’s account 23 may be used for higher education costs, as defined in section 24 12D.1, incurred by the pupil while attending an institution 25 of higher education under the control of the state board of 26 regents, a community college located in this state, or a 27 private college or university located in this state. Payments 28 from a pupil’s account for higher education costs shall be 29 made in the same manner as payments for qualified educational 30 expenses under subsection 5. Moneys in a pupil’s account when 31 the pupil turns twenty-three years of age shall be transferred 32 by the department of management for deposit in the general fund 33 of the state. 34 b. Notwithstanding the age limitation in paragraph “a” , 35 -5- LSB 5518YC (13) 87 md/jh 5/ 44
H.F. _____ if the pupil with a positive balance in the pupil’s account 1 in the education savings grant fund upon graduation from high 2 school serves on federal active duty, other than training, and 3 is discharged under honorable conditions, the limitation date 4 otherwise applicable under paragraph “a” shall be extended 5 by one year for each year of federal active duty service by 6 the pupil, but not to a date after the pupil’s twenty-seventh 7 birthday. 8 9. This section shall not be construed to authorize the 9 state or any political subdivision of the state to exercise 10 authority over any nonpublic school or construed to require a 11 nonpublic school to modify its academic standards for admission 12 or educational program in order to receive payment from a 13 parent or guardian using funds from a pupil’s account in the 14 education savings grant fund. A nonpublic school that accepts 15 payment from a parent or guardian using funds from a pupil’s 16 account in the education savings grant fund is not an agent of 17 this state or of a political subdivision of this state. Rules 18 adopted by the department to implement this section that impose 19 an undue burden on a nonpublic school are invalid. 20 Sec. 4. Section 422.7, Code 2018, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 51. Subtract, to the extent included, the 23 amount of an education savings grant under section 257.11B 24 received by the taxpayer for payment of qualified educational 25 expenses. 26 Sec. 5. APPLICABILITY. The following applies to school 27 budget years and fiscal years beginning on or after July 1, 28 2019: 29 The section of this division of this Act enacting section 30 257.11B. 31 Sec. 6. APPLICABILITY. The following applies to tax years 32 beginning on or after January 1, 2019: 33 The section of this division of this Act enacting section 34 422.7, subsection 51. 35 -6- LSB 5518YC (13) 87 md/jh 6/ 44
H.F. _____ DIVISION III 1 CHARTER SCHOOLS 2 Sec. 7. NEW SECTION . 256E.1 Purpose. 3 The purpose of a charter school established pursuant to this 4 chapter shall be to accomplish the following: 5 1. Improve student learning. 6 2. Increase learning opportunities for students. 7 3. Encourage the use of different and innovative methods of 8 teaching. 9 4. Require the measurement of learning outcomes and create 10 different and innovative forms of measuring outcomes. 11 5. Establish new forms of accountability for schools. 12 6. Create new professional opportunities for teachers and 13 other educators, including the opportunity to be responsible 14 for the learning program at the school site. 15 7. Create different organizational structures for 16 continuous learner progress. 17 8. Allow greater flexibility to meet the education needs of 18 a diverse and constantly changing student population. 19 9. Allow for the allocation of resources in innovative ways 20 through implementation of specialized school budgets for the 21 benefit of the schools served. 22 Sec. 8. NEW SECTION . 256E.2 Definitions. 23 As used in this chapter, unless the context otherwise 24 requires: 25 1. “Attendance center” means a school building that contains 26 classrooms used for instructional purposes for elementary, 27 middle, or secondary school students. 28 2. “Authorizing board” means the school board or the 29 state board, as applicable, that approved the charter school 30 application and that is a party to the charter school contract. 31 3. “Charter school” means a charter school established in 32 accordance with this chapter. 33 4. “Department” means the department of education. 34 5. “Education service provider” means an education 35 -7- LSB 5518YC (13) 87 md/jh 7/ 44
H.F. _____ management organization, charter school management 1 organization, or other person with whom a charter school 2 contracts for educational program implementation or 3 comprehensive management. 4 6. “Founding group” means a person or group of persons that 5 develops and submits an application for a charter school to an 6 authorizing board under this chapter. 7 7. “Governing board” means the independent board of a 8 charter school whose members are elected or selected pursuant 9 to the charter school application and charter school contract. 10 8. “School board” means a board of directors regularly 11 elected by the registered voters of a school district. 12 9. “State board” means the state board of education. 13 Sec. 9. NEW SECTION . 256E.3 Federal grant application. 14 Unless satisfied by and within the scope of the application 15 filed pursuant to section 256F.3, subsection 1, the state board 16 shall apply for a federal grant under Pub. L. No. 107-110, 17 cited as the federal No Child Left Behind Act of 2001, Tit. V, 18 pt. B, subpt. 1, for purposes of providing financial assistance 19 for the planning, program design, and initial implementation 20 of charter schools. The department shall monitor the 21 effectiveness of charter schools and shall implement the 22 applicable provisions of this chapter. 23 Sec. 10. NEW SECTION . 256E.4 Founding group-school board 24 model. 25 1. a. A school board that intends to authorize a charter 26 school within the school district may solicit charter school 27 applications. 28 b. A founding group may apply to a school board for approval 29 to establish and operate a charter school within and as a part 30 of the school district either by establishing a new attendance 31 center or converting an existing attendance center. The 32 application shall demonstrate the applicant’s academic and 33 operational vision and plans for the proposed charter school, 34 demonstrate the applicant’s capacity to execute the vision and 35 -8- LSB 5518YC (13) 87 md/jh 8/ 44
H.F. _____ plans, and provide the school board a clear basis for assessing 1 the applicant’s plans and capacity. 2 2. The state board shall adopt rules to establish 3 appropriate application timelines and deadlines for the 4 submission of charter school applications under this section. 5 3. The instructions for completing an application shall 6 include or otherwise inform applicants of all of the following: 7 a. The performance framework adopted by the school board 8 for charter school oversight and evaluation requirements in 9 accordance with sections 256E.10 and 256E.11. 10 b. The criteria the school board will use in evaluating 11 applications. 12 c. The requirements concerning the format and content 13 essential for applicants to demonstrate the capacities 14 necessary to establish and operate a successful charter school. 15 4. An application submitted under this section shall also 16 include all of the following items related to the proposed 17 charter school: 18 a. An executive summary. 19 b. The mission and vision of the proposed charter school, 20 including identification of the targeted student population and 21 the community the school intends to serve. 22 c. The location of the proposed charter school or the 23 proposed geographic area within the school district where the 24 school is proposed to locate. 25 d. Identification of the grades to be served each school 26 year during the duration of the charter school contract. 27 e. Minimum, planned, and maximum enrollment per grade for 28 each school year during the duration of the charter school 29 contract. 30 f. Evidence of need and community support for the proposed 31 charter school. 32 g. Background information on the members of the founding 33 group and background information on the governing board 34 members, administration, and management personnel of the 35 -9- LSB 5518YC (13) 87 md/jh 9/ 44
H.F. _____ proposed charter school, if available. 1 h. The charter school’s proposed operations calendar and 2 sample daily schedule. 3 i. A description of the academic program and identification 4 of ways the program aligns with state academic standards. 5 j. A description of the charter school’s instructional 6 model, including the type of learning environment, class size 7 and structure, curriculum overview, and teaching methods. 8 k. The charter school’s plan for using internal and external 9 assessments to measure and report student progress on the 10 performance framework in accordance with section 256E.10. 11 l. Plans for identifying and serving students with 12 disabilities, students who are limited English proficient, 13 students who are academically failing or below grade level, and 14 gifted students, including but not limited to compliance with 15 applicable laws and regulations. 16 m. A description of cocurricular and extracurricular 17 programs and how the programs will be funded and delivered. 18 n. Plans and timelines for student recruitment, enrollment, 19 and transfers, including enrollment preferences and procedures 20 for conducting transparent admissions selections, including 21 admissions lotteries. 22 o. The proposed code of student conduct, including 23 applicable procedures and disciplinary sanctions for both 24 general students and special education students. 25 p. A chart or description of the charter school’s 26 organizational structure and the duties and powers of each 27 position or group, including the delineation of authority and 28 reporting between the governing board, staff, and any related 29 bodies or external organizations that have a role in managing 30 the charter school. 31 q. A staffing chart for the charter school’s first year 32 and a staffing plan for the duration of the charter school 33 contract. 34 r. Plans for recruiting and developing school 35 -10- LSB 5518YC (13) 87 md/jh 10/ 44
H.F. _____ administrators, staff, and governing board members and the 1 charter school’s employment policies, including performance 2 evaluation plans. 3 s. Proposed governing bylaws for the charter school. 4 t. Identification and explanation of any partnerships or 5 contractual relationships with an education service provider 6 that are related to the charter school’s operations or mission. 7 u. The charter school’s plans for providing transportation 8 services, food service, and all other operational or ancillary 9 services. 10 v. Proposed opportunities and expectations for parent 11 involvement. 12 w. A detailed school start-up plan and a five-year plan, 13 including all relevant assumptions used, identifying timelines 14 for charter school finances, budget, and insurance coverage, 15 facility construction, preparation, and contingencies, and the 16 identification of persons or positions responsible for each 17 such item. 18 x. Evidence of anticipated fundraising contributions, if 19 any. 20 y. If the application includes a proposal that the governing 21 board contracts with an education service provider, evidence 22 of the education service provider’s success in serving 23 student populations similar to that which is proposed in the 24 application and if the education service provider operates 25 other charter schools, evidence of past performance of such 26 other charter schools and evidence of the education service 27 provider’s capacity for growth. 28 z. A proposed duration and outline of the charter school 29 contract, including designation of roles, authority, and duties 30 of the governing board and the charter school’s staff. 31 aa. If the application includes a proposal that the 32 governing board contracts with an education service provider, 33 a description of the education service provider’s performance 34 evaluation measures, compensation structure, methods of 35 -11- LSB 5518YC (13) 87 md/jh 11/ 44
H.F. _____ contract oversight and dispute resolution, investment 1 disclosures, and conflicts of interest. 2 5. If the applicant proposes to establish a charter school 3 within the school district by converting an existing attendance 4 center of the school district, the school board shall not 5 approve the application unless the applicant submits evidence 6 that the attendance center’s teachers and parents or guardians 7 of students enrolled at the existing attendance center voted in 8 favor of the conversion. A vote in favor of conversion under 9 this subsection requires the support of at least fifty percent 10 of the teachers employed at the school on the date of the vote 11 and fifty percent of the parents or guardians voting whose 12 children are enrolled at the school, provided that a majority 13 of the parents or guardians eligible to vote participate in the 14 ballot process. The state board shall establish procedures by 15 rule for voting under this subsection. A parent or guardian 16 voting in accordance with this subsection must be a resident 17 of this state. 18 6. In reviewing and evaluating charter school applications, 19 the school board shall employ procedures, practices, and 20 criteria consistent with nationally recognized principles and 21 standards for reviewing charter school applications. Each 22 application review shall include thorough evaluation of the 23 written application, an in-person interview with the applicant, 24 and an opportunity in a public forum for local residents to 25 learn about and provide input on each application. 26 7. The school board shall make public the name of any person 27 that assists the school board in conducting a review of a 28 charter school application. 29 8. Following review of a charter school application and 30 completion of the process required under subsection 6, the 31 school board shall: 32 a. Approve a charter school application only if the 33 applicant has demonstrated competence in each element of the 34 school board’s approval criteria and the applicant is likely to 35 -12- LSB 5518YC (13) 87 md/jh 12/ 44
H.F. _____ open and operate a successful charter school. 1 b. Make application decisions on documented evidence 2 collected through the application review process. 3 c. Adhere to the policies and criteria that are transparent, 4 based on merit, and avoid conflicts of interest or any 5 appearance thereof. 6 9. A charter school application under this section shall 7 not be approved if the founding group has a pending application 8 with another school district under this section or a pending 9 application with the state board under section 256E.6. 10 10. A school board shall by a majority vote approve or 11 deny a charter school application no later than seventy-five 12 calendar days after the application is received. A school 13 board that denies an application shall provide notice of 14 denial to the applicant in writing within thirty days after 15 board action. The notice shall specify the exact reasons for 16 denial and provide documentation supporting those reasons. 17 An approval decision may include, if appropriate, reasonable 18 conditions that the applicant must meet before a charter 19 school contract may be executed pursuant to section 256E.7. 20 An approved charter school application shall not serve as a 21 charter school contract. 22 11. An unsuccessful charter school applicant may 23 subsequently reapply to the school board, apply to any other 24 school board in the state under this section, or apply to the 25 state board under section 256E.6. 26 12. A decision of the school board relating to an 27 application under this section is not appealable; however, the 28 school board shall report any application denial to the state 29 board within thirty days of the board action. 30 Sec. 11. NEW SECTION . 256E.5 School board-state board 31 model. 32 1. A school board may create a founding group to apply 33 to the state board for approval to establish and operate a 34 charter school within and as a part of the school district by 35 -13- LSB 5518YC (13) 87 md/jh 13/ 44
H.F. _____ establishing a new attendance center, creating a new school 1 within an existing attendance center, or by converting an 2 existing attendance center. The application shall demonstrate 3 the founding group’s academic and operational vision and plans 4 for the proposed charter school, demonstrate the founding 5 group’s capacity to execute the vision and plans, and provide 6 the state board a clear basis for assessing the founding 7 group’s plans and capacity. 8 2. The state board shall adopt rules to establish 9 appropriate application timelines and deadlines for the 10 submission of charter school applications under this section. 11 3. The instructions for completing an application shall 12 include or otherwise inform applicants of all of the following: 13 a. The performance framework adopted by the state board 14 for charter school oversight and evaluation requirements in 15 accordance with sections 256E.10 and 256E.11. 16 b. The criteria the state board will use in evaluating 17 applications. 18 c. The requirements concerning the format and content 19 essential for applicants to demonstrate the capacities 20 necessary to establish and operate a successful charter school. 21 4. An application submitted under this section shall also 22 include all of the following items related to the proposed 23 charter school: 24 a. An executive summary. 25 b. The mission and vision of the proposed charter school, 26 including identification of the targeted student population and 27 the community the charter school intends to serve. 28 c. The location of the proposed charter school or the 29 proposed geographic area within the school district where the 30 school is proposed to locate. 31 d. Identification of the grades to be served each school 32 year during the duration of the charter school contract. 33 e. Minimum, planned, and maximum enrollment per grade for 34 each school year during the duration of the charter school 35 -14- LSB 5518YC (13) 87 md/jh 14/ 44
H.F. _____ contract. 1 f. Evidence of need and community support for the proposed 2 charter school. 3 g. Background information on the members of the founding 4 group and background information on the governing board, 5 administration, and management personnel of the proposed 6 charter school, if available. 7 h. The charter school’s proposed operations calendar and 8 sample daily schedule. 9 i. A description of the academic program and identification 10 of ways the program aligns with state academic standards. 11 j. A description of the charter school’s instructional 12 model, including the type of learning environment, class size 13 and structure, curriculum overview, and teaching methods. 14 k. The charter school’s plan for using internal and external 15 assessments to measure and report student progress on the 16 performance framework in accordance with section 256E.10. 17 l. Plans for identifying and serving students with 18 disabilities, students who are limited English proficient, 19 students who are academically failing or below grade level, and 20 gifted students, including but not limited to compliance with 21 applicable laws and regulations. 22 m. A description of cocurricular and extracurricular 23 programs and how the programs will be funded and delivered. 24 n. Plans and timelines for student recruitment, enrollment, 25 and transfers, including enrollment preferences and procedures 26 for conducting transparent admissions selections, including 27 admissions lotteries. 28 o. The proposed code of student conduct, including 29 applicable procedures and disciplinary sanctions for both 30 general students and special education students. 31 p. A chart or description of the charter school’s 32 organizational structure and the duties and powers of each 33 position or group, including the delineation of authority and 34 reporting between the governing board, administration, staff, 35 -15- LSB 5518YC (13) 87 md/jh 15/ 44
H.F. _____ and any related bodies or external organizations that have a 1 role in managing the charter school. 2 q. A staffing chart for the charter school’s first year 3 and a staffing plan for the duration of the charter school 4 contract. 5 r. Plans for recruiting and developing school 6 administrators, staff, and governing board members and the 7 charter school’s employment policies, including performance 8 evaluation plans. 9 s. Proposed governing bylaws for the charter school. 10 t. Identification and explanation of any partnerships or 11 contractual relationships with the founding group or any of the 12 founding group or school board’s members that are related to 13 the charter school’s operations or mission. 14 u. The charter school’s plans for providing transportation 15 services, food service, and all other operational or ancillary 16 services. 17 v. Proposed opportunities and expectations for parent 18 involvement. 19 w. A detailed school start-up plan and five-year plan, 20 including all relevant assumptions used, identifying timelines 21 for charter school finances, budget, and insurance coverage, 22 facility construction, preparation, and contingencies, and the 23 identification of persons or positions responsible for each 24 such item. 25 x. Evidence of anticipated fundraising contributions, if 26 any. 27 y. Evidence of the founding group’s success in serving 28 student populations similar to that which is proposed in the 29 application and if the founding group operates other charter 30 schools, evidence of past performance of such other charter 31 schools and evidence of the founding group’s capacity for an 32 additional charter school. 33 z. A proposed duration and outline of the charter school 34 contract, including designation of roles, authority, and duties 35 -16- LSB 5518YC (13) 87 md/jh 16/ 44
H.F. _____ of the governing board and the charter school’s staff. 1 aa. A description of the charter school governing board’s 2 performance evaluation measures, compensation structure, 3 methods of contract oversight and dispute resolution, 4 investment disclosures and conflicts of interest. 5 5. If the founding group proposes to establish a charter 6 school by converting an existing attendance center of the 7 school district, the state board shall not approve the 8 application unless the founding group submits evidence that 9 the attendance center’s teachers and parents or guardians of 10 students enrolled at the existing attendance center voted in 11 favor of the conversion. A vote in favor of conversion under 12 this subsection requires the support of at least fifty percent 13 of the teachers employed at the school on the date of the vote 14 and fifty percent of the parents or guardians voting whose 15 children are enrolled at the school, provided that a majority 16 of the parents or guardians eligible to vote participate in the 17 ballot process. The state board shall establish procedures by 18 rule for voting under this subsection. A parent or guardian 19 voting in accordance with this subsection must be a resident 20 of this state. 21 6. In reviewing and evaluating charter school applications, 22 the state board shall employ procedures, practices, and 23 criteria consistent with nationally recognized principles and 24 standards for reviewing charter school applications. Each 25 application review shall include thorough evaluation of the 26 written application, an in-person interview with the founding 27 group, and an opportunity in a public forum for local residents 28 to learn about and provide input on each application. 29 7. Following review of a charter school application and 30 completion of the process required under subsection 6, the 31 state board shall: 32 a. Approve a charter school application only if the founding 33 group has demonstrated competence in each element of the 34 approval criteria and if the founding group is likely to open 35 -17- LSB 5518YC (13) 87 md/jh 17/ 44
H.F. _____ and operate a successful charter school. 1 b. Make application decisions on documented evidence 2 collected through the application review process. 3 c. Adhere to the policies and criteria that are transparent, 4 based on merit, and avoid conflicts of interest or any 5 appearance thereof. 6 8. The state board shall by a majority vote approve or 7 deny a charter school application no later than seventy-five 8 calendar days after the application is received. If the state 9 board denies an application, the state board shall provide 10 notice of denial to the founding group in writing within 11 thirty days after the state board’s action. The notice shall 12 specify the exact reasons for denial and provide documentation 13 supporting those reasons. An approval decision may include, if 14 appropriate, reasonable conditions that the founding group must 15 meet before a charter school contract may be executed pursuant 16 to section 256E.7. An approved charter application shall not 17 serve as a charter school contract. 18 9. A decision of the state board relating to an application 19 under this section is not appealable. 20 10. An unsuccessful applicant under this section may 21 subsequently reapply to the state board. 22 Sec. 12. NEW SECTION . 256E.6 Founding group-state board 23 model. 24 1. A founding group may apply to the state board for 25 approval to establish and operate a charter school within the 26 boundaries of the state that operates as a new attendance 27 center independently from a public school district. The 28 application shall demonstrate the founding group’s academic 29 and operational vision and plans for the proposed charter 30 school, demonstrate the founding group’s capacity to execute 31 the vision and plans, and provide the state board a clear basis 32 for assessing the founding group’s plans and capacity. 33 2. The state board shall adopt rules to establish 34 appropriate application timelines and deadlines for the 35 -18- LSB 5518YC (13) 87 md/jh 18/ 44
H.F. _____ submission of charter school applications under this section. 1 3. The instructions for completing an application shall 2 include or otherwise inform applicants of all of the following: 3 a. The performance framework adopted by the state board 4 for charter school oversight and evaluation requirements in 5 accordance with sections 256E.10 and 256E.11. 6 b. The criteria the state board will use in evaluating 7 applications. 8 c. The requirements concerning the format and content 9 essential for applicants to demonstrate the capacities 10 necessary to establish and operate a successful charter school. 11 4. The applications submitted under this section shall also 12 include all of the following items related to the proposed 13 charter school: 14 a. An executive summary. 15 b. The mission and vision of the proposed charter school, 16 including identification of the targeted student population and 17 the community the school intends to serve. 18 c. The location of the proposed charter school or the 19 proposed geographic area within the state where the school is 20 proposed to locate. 21 d. Identification of the grades to be served each school 22 year during the duration of the charter school contract. 23 e. Minimum, planned, and maximum enrollment per grade for 24 each school year during the duration of the charter school 25 contract. 26 f. Evidence of need and community support for the proposed 27 charter school. 28 g. Background information on the members of the founding 29 group and background information on the governing board, 30 administration, and management personnel of the proposed 31 charter school, if available. 32 h. The charter school’s proposed operations calendar and 33 sample daily schedule. 34 i. A description of the academic program and identification 35 -19- LSB 5518YC (13) 87 md/jh 19/ 44
H.F. _____ of ways the program aligns with state academic standards. 1 j. A description of the charter school’s instructional 2 model, including the type of learning environment, class size 3 and structure, curriculum overview, and teaching methods. 4 k. The charter school’s plan for using internal and external 5 assessments to measure and report student progress on the 6 performance framework in accordance with section 256E.10. 7 l. Plans for identifying and serving students with 8 disabilities, students who are limited English proficient, 9 students who are academically failing or below grade level, and 10 gifted students, including but not limited to compliance with 11 applicable laws and regulations. 12 m. A description of cocurricular and extracurricular 13 programs and how the programs will be funded and delivered. 14 n. Plans and timelines for student recruitment, enrollment, 15 and transfers, including enrollment preferences and procedures 16 for conducting transparent admissions selections, including 17 admissions lotteries. 18 o. The proposed code of student conduct, including 19 applicable procedures and disciplinary sanctions for both 20 general students and special education students. 21 p. A chart or description of the charter school’s 22 organizational structure and the duties and powers of each 23 position or group, including the delineation of authority and 24 reporting between the governing board, staff, and any related 25 bodies or external organizations that have a role in managing 26 the charter school. 27 q. A staffing chart for the charter school’s first year 28 and a staffing plan for the duration of the charter school 29 contract. 30 r. Plans for recruiting and developing school 31 administrators, staff, and governing board members and the 32 charter school’s employment policies, including performance 33 evaluation plans. 34 s. Proposed governing bylaws for the charter school. 35 -20- LSB 5518YC (13) 87 md/jh 20/ 44
H.F. _____ t. Identification and explanation of any partnerships or 1 contractual relationships with an education service provider 2 that are related to the charter school’s operations or mission. 3 u. The charter school’s plans for providing transportation 4 services, food service, and all other operational or ancillary 5 services. 6 v. Proposed opportunities and expectations for parent 7 involvement. 8 w. A detailed school start-up plan and five-year plan, 9 including all relevant assumptions used, identifying timelines 10 for charter school finances, budget, and insurance coverage, 11 facility construction, preparation, and contingencies, and the 12 identification of persons or positions responsible for each 13 such item. 14 x. Evidence of anticipated fundraising contributions, if 15 any. 16 y. If the application includes a proposal that the governing 17 board contracts with an education service provider, evidence 18 of the education service provider’s success in serving 19 student populations similar to that which is proposed in the 20 application and if the education service provider operates 21 other charter schools, evidence of past performance of such 22 other charter schools and evidence of the education service 23 provider’s capacity for growth. 24 z. A proposed duration and outline of the charter school 25 contract, including designation of roles, authority, and duties 26 of the governing board and the charter school’s staff. 27 aa. If the application includes a proposal that the 28 governing board contracts with an education service provider, 29 a description of the education service provider’s performance 30 evaluation measures, compensation structure, methods of 31 contract oversight and dispute resolution, investment 32 disclosures and conflicts of interest. 33 5. In reviewing and evaluating charter school applications, 34 the state board shall employ procedures, practices, and 35 -21- LSB 5518YC (13) 87 md/jh 21/ 44
H.F. _____ criteria consistent with nationally recognized principles and 1 standards for reviewing charter school applications. Each 2 application review shall include thorough evaluation of the 3 written application, an in-person interview with the applicant, 4 and an opportunity in a public forum for local residents of the 5 public school district within which the applicant proposes to 6 locate the charter school to learn about and provide input on 7 each application. 8 6. Following review of a charter school application and 9 completion of the process required under subsection 5, the 10 state board shall: 11 a. Approve a charter school application only if the 12 applicant has demonstrated competence in each element of the 13 state board’s published approval criteria and the applicant is 14 likely to open and operate a successful charter school. 15 b. Make application decisions on documented evidence 16 collected through the application review process. 17 c. Adhere to the policies and criteria that are transparent, 18 based on merit, and avoid conflicts of interest or any 19 appearance thereof. 20 7. A charter school application under this section shall 21 not be approved if the founding group has another pending 22 application under this section or a pending application with a 23 school district under section 256E.4. 24 8. The state board shall by a majority vote approve or 25 deny a charter school application no later than seventy-five 26 calendar days after the application is received. If the state 27 board denies an application, the state board shall provide 28 notice of denial to the applicant in writing within thirty 29 days after board action. The notice shall specify the exact 30 reasons for denial and provide documentation supporting those 31 reasons. An approval decision may include, if appropriate, 32 reasonable conditions that the applicant must meet before a 33 charter school contract may be executed pursuant to section 34 256E.7. An approved charter application shall not serve as a 35 -22- LSB 5518YC (13) 87 md/jh 22/ 44
H.F. _____ charter school contract. 1 9. An unsuccessful charter school applicant may 2 subsequently reapply to the state board or apply to a school 3 board in the state under section 256E.4. 4 10. A decision of the state board relating to an application 5 under this section is not appealable. 6 Sec. 13. NEW SECTION . 256E.7 Charter school contract. 7 1. Within the later of thirty days following approval 8 of a charter school application or upon the satisfaction of 9 all reasonable conditions imposed on the applicant in the 10 charter school approval, if any, an enforceable and renewable 11 charter school contract shall be executed between the following 12 parties setting forth the academic and operational performance 13 expectations and measures by which the charter school will be 14 evaluated pursuant to sections 256E.10 and 256E.11 and the 15 other rights and duties of the parties: 16 a. For an application approved under section 256E.4, the 17 founding group and the school board. 18 b. For an application approved under section 256E.5, the 19 founding group and the state board. 20 c. For an application approved under section 256E.6, the 21 founding group and the state board. 22 2. An initial charter school contract shall be granted for a 23 term of five school budget years. The charter school contract 24 shall include the beginning and ending dates of the charter 25 school contract term. An approved charter school may delay its 26 opening for a period of time not to exceed one school year in 27 order to plan and prepare for the charter school’s opening. If 28 the charter school requires an opening delay of more than one 29 school year, the charter school may request an extension from 30 the authorizing board. 31 3. Each charter school contract shall be signed by the 32 president of the authorizing board and the president of the 33 governing body of the founding group. 34 4. a. If the charter school is approved under section 35 -23- LSB 5518YC (13) 87 md/jh 23/ 44
H.F. _____ 256E.4, the school board, within thirty days of executing 1 a charter school contract, shall submit to the state board 2 written notice of the charter school contract execution, 3 including a copy of the executed charter school contract and 4 any attachments or appendices. 5 b. Within fifteen days of receipt of the charter school 6 contract or within fifteen days of the execution of a charter 7 school contract entered into by the state board, the state 8 board shall notify the department of education and the 9 department of management of the name of the charter school 10 and any applicable education service provider, the proposed 11 location of the charter school, and the charter school’s first 12 year projected enrollment. 13 5. A charter school approved under this chapter shall not 14 commence operations without a valid charter school contract 15 executed in accordance with this section and approved in an 16 open session of the authorizing board. 17 6. The contract may provide for requirements or conditions 18 to govern and monitor the start-up progress of an approved 19 charter school prior to the opening of the charter school 20 including but not limited to conditions to ensure that the 21 charter school meets all building, health, safety, insurance, 22 and other legal requirements. 23 7. A charter school contract may be amended to govern 24 multiple charter schools operated by the same applicant and 25 approved by the same authorizing board. However, each charter 26 school that is part of a charter school contract shall be 27 separate and distinct from any other charter school governed by 28 the contract. 29 8. a. For a charter school established under section 30 256E.4, if the school board that approved the application 31 wishes to transfer the charter school contract and all contract 32 requirements to the school board of another public school 33 district, a request for such a transfer must be filed jointly 34 by both school boards with the state board. The state board 35 -24- LSB 5518YC (13) 87 md/jh 24/ 44
H.F. _____ shall not approve such a transfer except upon the finding of 1 special circumstances and that such a transfer would serve the 2 best interests of the charter school’s students. 3 b. For a charter school established under section 256E.4, 4 if the school board wishes to transfer its authorization and 5 oversight duties to the state board, the charter school’s 6 governing board, the school board, and the state board must all 7 approve the transfer. 8 c. For a charter school established under section 256E.5 or 9 256E.6, if the state board wishes to transfer its authorization 10 and oversight duties to a school board, the charter school’s 11 governing board, the school board, and the state board must all 12 approve the transfer. 13 Sec. 14. NEW SECTION . 256E.8 General operating powers and 14 duties. 15 1. In order to fulfill the charter school’s public purpose, 16 a charter school established under this chapter shall be 17 organized as a nonprofit education organization and shall 18 have all the powers necessary for carrying out the terms of 19 the charter school contract including but not limited to the 20 following, as applicable: 21 a. Receive and expend funds for charter school purposes. 22 b. Secure appropriate insurance and enter into contracts and 23 leases. 24 c. Contract with an education service provider for the 25 management and operation of the charter school so long as the 26 governing board retains oversight authority over the charter 27 school. 28 d. Incur debt in anticipation of the receipt of public or 29 private funds. 30 e. Pledge, assign, or encumber the charter school’s assets 31 to be used as collateral for loans or extensions of credit. 32 f. Solicit and accept gifts or grants for charter school 33 purposes unless otherwise prohibited by law or by the terms of 34 its charter school contract. 35 -25- LSB 5518YC (13) 87 md/jh 25/ 44
H.F. _____ g. Acquire from public or private sources real property for 1 use as a charter school or a facility directly related to the 2 operations of the charter school. 3 h. Sue and be sued in the charter school’s own name. 4 i. Operate an education program that may be offered by any 5 noncharter public school or school district. 6 2. A charter school established under this chapter is 7 exempt from all state statutes and rules and any local rule, 8 regulation, or policy, applicable to a noncharter school, 9 except that the charter school shall do all of the following: 10 a. Meet all applicable federal, state, and local health and 11 safety requirements and laws prohibiting discrimination on the 12 basis of race, creed, color, sex, sexual orientation, gender 13 identity, national origin, religion, ancestry, or disability. 14 If approved under section 256E.4 or 256E.5, the charter school 15 shall be subject to any court-ordered desegregation plan in 16 effect for the school district at the time the charter school 17 application is approved. 18 b. Operate as a nonsectarian, nonreligious school. 19 c. Be free of tuition and application fees to Iowa resident 20 students between the ages of five and twenty-one years. 21 d. Be subject to and comply with chapters 216 and 216A 22 relating to civil and human rights. 23 e. Provide special education services in accordance with 24 chapter 256B. 25 f. Be subject to the same financial audits, audit 26 procedures, and audit requirements as a school district. The 27 audit shall be consistent with the requirements of sections 28 11.6, 11.14, 11.19, and 279.29, and section 256.9, subsection 29 20, except to the extent deviations are necessary because 30 of the program at the school. The department, the auditor 31 of state, or the legislative services agency may conduct 32 financial, program, or compliance audits. 33 g. Be subject to and comply with the provisions of chapter 34 285 relating to the transportation of students. 35 -26- LSB 5518YC (13) 87 md/jh 26/ 44
H.F. _____ h. Be subject to and comply with the requirements of section 1 256.7, subsection 21, and the educational standards of section 2 256.11. 3 i. Provide instruction for at least the number of days or 4 hours required by section 279.10, subsection 1. 5 j. Be subject to the construction bidding requirements of 6 chapter 26. 7 k. Comply with the requirements of this chapter. 8 3. A charter school shall employ or contract with teachers 9 as defined in section 272.1, who hold valid licenses with an 10 endorsement for the type of instruction or service for which 11 the teachers are employed or under contract. 12 4. A charter school shall not discriminate in its student 13 admissions policies or practices on the basis of intellectual 14 or athletic ability, measures of achievement or aptitude, or 15 status as a person with a disability. However, a charter 16 school may limit admission to students who are within a 17 particular range of ages or grade levels or on any other 18 basis that would be legal if initiated by a school district. 19 Enrollment priority shall be given to the siblings of students 20 enrolled in a charter school. 21 5. A charter school shall enroll an eligible student who 22 submits a timely application unless the number of applications 23 exceeds the capacity of a program, class, grade level, or 24 building. In this case, students must be accepted by lot. 25 Upon enrollment of an eligible student, the charter school 26 shall notify the public school district of residence not later 27 than March 1 of the preceding school year. 28 6. Each charter school governing board shall be required to 29 adopt a conflict of interest policy and a code of ethics for 30 all board members and employees. 31 7. Each charter school governing board shall adopt a policy 32 regarding the hiring of family members to avoid nepotism in 33 hiring and supervision. The policy shall include but is not 34 limited to a disclosure to the governing board of potential 35 -27- LSB 5518YC (13) 87 md/jh 27/ 44
H.F. _____ nepotism in hiring and supervision. Any person subject to the 1 policy with a conflict shall not be involved in the hiring 2 decision or supervision of a potential employee. 3 8. Individuals compensated by an education service provider 4 are prohibited from serving as a voting member on the governing 5 board of any charter school unless the school board or state 6 board that approved the charter school waives such prohibition. 7 9. If the charter school is operated by an education service 8 provider, the governing board of the charter school shall have 9 access to all records of the education service provider that 10 are necessary to evaluate any provision of the contract or 11 evaluate the education service provider’s performance under the 12 contract. 13 Sec. 15. NEW SECTION . 256E.9 Funding. 14 1. Each student enrolled in a charter school established 15 under this chapter shall be counted, for state school 16 foundation purposes, in the student’s district of residence 17 pursuant to section 257.6, subsection 1, paragraph “a” , 18 subparagraph (8). For purposes of this section, residence 19 means a residence under section 282.1. 20 2. a. The school district of residence shall pay to the 21 charter school in which the student is enrolled in the manner 22 required under section 282.18, subsection 7, and pursuant to 23 the timeline in section 282.20, subsection 3, an amount equal 24 to the sum of the following: 25 (1) The regular program state cost per pupil for the 26 previous school year. 27 (2) The teacher salary supplement state cost per pupil for 28 the previous fiscal year. 29 (3) The professional development supplement state cost per 30 pupil for the previous fiscal year. 31 (4) The early intervention supplement state cost per pupil 32 for the previous fiscal year. 33 (5) The area education agency teacher salary supplement 34 state cost per pupil for the previous fiscal year. 35 -28- LSB 5518YC (13) 87 md/jh 28/ 44
H.F. _____ (6) The area education agency professional development 1 supplement state cost per pupil for the previous fiscal year. 2 (7) The state media services cost per pupil for the previous 3 fiscal year. 4 (8) The special education support services state cost per 5 pupil for the previous fiscal year. 6 (9) The state educational services cost per pupil for the 7 previous fiscal year. 8 (10) Any moneys the school district receives as a result 9 of the student’s non-English speaking weighting under section 10 280.4, subsection 3, for the previous school year. 11 (11) Any moneys the school district receives as a result of 12 the student’s enrollment in special education programs. 13 b. In addition to moneys received from the school district 14 of residence, charter schools with teachers and students 15 eligible for federal funding shall receive the proportionate 16 share of such funding. If a charter school receives such 17 funding, the charter school shall comply with all reporting or 18 other requirements to receive the funding. 19 3. If necessary, and pursuant to rules adopted by the state 20 board of education, funding amounts required under this section 21 for the first school year of a new charter school shall be 22 based on enrollment estimates for the charter school included 23 in the charter school contract. Initial amounts paid using 24 estimated enrollments shall be reconciled during the subsequent 25 payment based on actual enrollment of the charter school during 26 the first school year. 27 4. The department shall disburse state transportation 28 funding to a charter public school on the same basis and in the 29 same manner as such funding is paid to school districts. 30 Sec. 16. NEW SECTION . 256E.10 Performance framework. 31 1. The performance provisions within the charter school 32 contract shall be based on a performance framework adopted by 33 the authorizing board that clearly sets forth the academic 34 and operational performance indicators, measures, and metrics 35 -29- LSB 5518YC (13) 87 md/jh 29/ 44
H.F. _____ that will guide the evaluation of the charter school by the 1 authorizing board, without compromising individual student 2 privacy. The performance framework shall include but is not 3 limited to indicators, measures, and metrics for all of the 4 following: 5 a. Student academic proficiency. 6 b. Student academic growth. 7 c. Achievement gaps in both proficiency and growth between 8 specified populations or groups of students, including groups 9 based on gender, race, poverty, special education status, 10 limited English proficiency, and gifted status. 11 d. Attendance. 12 e. Enrollment attrition. 13 f. Postsecondary readiness for students in grades nine 14 through twelve. 15 g. Goals specified in the charter school’s mission. 16 h. Financial performance and sustainability. 17 i. Governing board performance and stewardship, including 18 compliance with all applicable laws, regulations, and terms of 19 the charter contract. 20 2. Annual performance targets shall be agreed upon 21 between each charter school and the authorizing board. Such 22 performance targets shall be contained in the charter school 23 contract and shall be designed to help each charter school 24 meet applicable federal, state, and local standards. The 25 performance targets contained in the charter school contract 26 may be amended by mutual agreement after the charter school is 27 operating and has collected initial achievement data for the 28 charter school’s students. 29 3. The authorizing board is responsible for collecting, 30 analyzing, and reporting all data from state assessments and 31 other state data sources in accordance with the performance 32 framework. However, all efforts shall be made by all 33 parties to the charter school contract to eliminate or reduce 34 duplicative data reporting requirements. 35 -30- LSB 5518YC (13) 87 md/jh 30/ 44
H.F. _____ 4. Multiple charter schools operating under a single 1 charter school contract shall be required to report their 2 performance data as separate, individual schools, with each 3 charter school held independently accountable for performance. 4 5. Each charter school established under this chapter 5 shall be evaluated and graded by the department pursuant to 6 the attendance center performance rankings developed pursuant 7 to 2013 Iowa Acts, ch. 121, §73, or any succeeding evaluation 8 system the department adopts. 9 Sec. 17. NEW SECTION . 256E.11 Oversight —— corrective 10 action —— contract renewal —— revocation. 11 1. The authorizing board shall monitor the performance 12 and compliance of each charter school the authorizing board 13 approves, including collecting and analyzing data according to 14 the charter school contract in order to meet the requirements 15 of this chapter. Such oversight may include inquiries and 16 investigation of the charter school so long as the activities 17 are consistent with the intent of this chapter, adhere to the 18 terms of the charter school contract, and do not unduly inhibit 19 the autonomy granted to the charter school. Any performance 20 report resulting from an inquiry or investigation under this 21 section shall, upon conclusion of such action, be included in 22 the annual report required under section 256E.13. 23 2. As part of the charter school contract, the charter 24 school may be required to submit an annual report to assist 25 the authorizing board in evaluating the charter school’s 26 performance and compliance with the performance framework. 27 3. In the event that a charter school’s performance under 28 the charter school contract or compliance with applicable 29 laws or rules is unsatisfactory, the authorizing board shall 30 notify the charter school of the perceived problem and provide 31 reasonable opportunity for the school to remedy the problem, 32 unless the problem warrants revocation, in which case the 33 revocation provisions of this section apply. 34 4. The authorizing board shall have the authority to take 35 -31- LSB 5518YC (13) 87 md/jh 31/ 44
H.F. _____ appropriate corrective actions or impose sanctions, other than 1 revocation, in response to deficiencies in the charter school’s 2 performance or compliance with applicable laws and rules. 3 Such actions or sanctions may include requiring the charter 4 school to develop and execute a corrective action plan within a 5 specified time period. 6 5. A charter school contract may be renewed for periods of 7 time not to exceed an additional five years. 8 6. Annually, by June 30, the authorizing board shall 9 issue a charter school performance report and charter school 10 contract renewal application guidance to each charter school 11 whose charter school contract will expire during the following 12 school budget year. The performance report shall summarize the 13 charter school’s performance record to date based on the data 14 required by the charter school contract and by this chapter 15 and shall identify concerns that may jeopardize renewal of the 16 charter school contract if not remedied. The charter school 17 shall have sixty days to respond to the performance report and 18 submit any corrections or clarifications for the report. 19 7. The renewal application guidance shall, at a minimum, 20 include the criteria that will be used when making renewal 21 decisions and provide an opportunity for the charter school to: 22 a. Present additional evidence, beyond the data contained in 23 the performance report. 24 b. Describe improvements undertaken or planned for the 25 charter school. 26 c. Describe the charter school’s plans, including any 27 proposed modifications, for the next charter school contract 28 term. 29 8. No later than October 1, the governing board of a charter 30 school seeking renewal shall submit a renewal application to 31 the authorizing board pursuant to the renewal application 32 guidance. A renewal or denial shall be approved by resolution 33 of the authorizing board within sixty days following the filing 34 of the renewal application. 35 -32- LSB 5518YC (13) 87 md/jh 32/ 44
H.F. _____ 9. Unless eligible for expedited renewal under subsection 1 14, when reviewing a charter school contract renewal 2 application, the authorizing board shall: 3 a. Use evidence of the school’s performance over the term of 4 the charter school contract in accordance with the applicable 5 performance framework. 6 b. Ensure that data used in making renewal decisions is 7 available to the charter school and the public. 8 c. Provide a report summarizing the evidence that served as 9 a basis for the decision. 10 10. A charter school contract may be revoked at any time 11 or not renewed if the authorizing board determines that the 12 charter school did any of the following: 13 a. Committed a material violation of any of the terms, 14 conditions, standards, or procedures required under the charter 15 school contract or this chapter. 16 b. Failed to meet or make sufficient progress toward the 17 performance expectations set forth in the charter school 18 contract. 19 c. Failed to meet generally accepted standards of fiscal 20 management. 21 d. Violated a provision of law from which the charter school 22 was not exempted. 23 11. Each authorizing board shall develop charter school 24 contract revocation and nonrenewal standards and procedures 25 that do all of the following: 26 a. Provide the charter school with a timely notice of the 27 possibility of revocation or nonrenewal and of the reasons 28 therefor. 29 b. Allow the charter school a reasonable period of time in 30 which to prepare a response to any notice received. 31 c. Provide the charter school an opportunity to submit 32 documents and give testimony challenging the decision to revoke 33 the charter school contract or the decision to not renew the 34 contract. 35 -33- LSB 5518YC (13) 87 md/jh 33/ 44
H.F. _____ d. Allow the charter school the opportunity to hire legal 1 representation and to call witnesses. 2 e. Permit the audio or video recording of such proceedings. 3 f. Require a final decision to be conveyed in writing to the 4 charter school. 5 12. A decision to revoke or to not renew a charter school 6 contract shall be by resolution of the authorizing board 7 and shall clearly state the reasons for the revocation or 8 nonrenewal. 9 13. For charter schools established under section 256E.4, 10 within thirty days of adopting a resolution to renew, not 11 renew, or revoke a charter school contract, the school board 12 shall report to the state board the action taken and shall 13 provide a copy of the resolution to the charter school at the 14 same time that the resolution is submitted to the state board. 15 14. If a charter school has been evaluated and graded to 16 be in the exceptional category, or the highest rated category 17 under a succeeding evaluation system, under the evaluation and 18 grading required under section 256E.10, subsection 5, for the 19 immediately preceding two school years, and the charter school 20 is in compliance with the current charter school contract 21 and all provisions of this chapter, the charter school’s 22 application renewal under subsection 8 shall be renewed 23 for an additional period of time equal to the length of the 24 original charter school contract or the most recent renewal 25 of the contract, whichever is longer, unless the authorizing 26 board provides written notice to the charter school of the 27 authorizing board’s rejection of the expedited renewal within 28 sixty days of the filing of the application. An authorizing 29 board shall not reject an expedited renewal application unless 30 the authorizing board finds exceptional circumstances for the 31 rejection or seeks material changes to the charter school 32 contract. 33 Sec. 18. NEW SECTION . 256E.12 Procedures for charter school 34 closure —— student enrollment. 35 -34- LSB 5518YC (13) 87 md/jh 34/ 44
H.F. _____ 1. Prior to any charter school closure decision, the 1 authorizing board shall develop a charter school closure 2 protocol to ensure timely notice to parents and guardians, 3 provide for the orderly transition of students and student 4 records to new schools, and to provide proper disposition of 5 school funds, property, and assets in accordance with the 6 requirements of this chapter. The protocol shall specify 7 required actions and timelines and identify responsible parties 8 for each such action. 9 2. In the event of a charter school closure, the assets of 10 the charter school shall be used first to satisfy outstanding 11 payroll obligations for employees of the school, then to 12 creditors of the school, then to the public school district in 13 which the charter school operated, if applicable, and then to 14 the state general fund. If the assets of the charter school 15 are insufficient to pay all obligations of the charter school, 16 the prioritization of the distribution of assets shall be 17 determined by the district court. 18 Sec. 19. NEW SECTION . 256E.13 Reports. 19 1. Each charter school shall prepare and file an annual 20 report with the department. The department shall prescribe 21 by rule the required contents of the report, but each such 22 report shall include information regarding student achievement, 23 including annual academic growth and proficiency, graduation 24 rates, and financial performance and sustainability. The 25 reports are public records and the examination, publication, 26 and dissemination of the reports are governed by the provisions 27 of chapter 22. 28 2. The state board shall prepare and file with the general 29 assembly by December 1, annually, a comprehensive report with 30 findings and recommendations relating to the charter school 31 program in the state and whether the charter school program 32 under this chapter is meeting the goals and purposes of the 33 program. The report also shall contain, for each charter 34 school, a copy of the charter school’s mission statement, 35 -35- LSB 5518YC (13) 87 md/jh 35/ 44
H.F. _____ attendance statistics and dropout rate, aggregate assessment 1 test scores, projections of financial stability, and the number 2 and qualifications of teachers and administrators. 3 Sec. 20. Section 256F.3, Code 2018, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 8A. The state board shall not approve a new 6 charter school under this chapter on or after July 1, 2018. 7 Sec. 21. NEW SECTION . 256F.12 Operation of existing charter 8 schools. 9 Charter schools established under this chapter prior to July 10 1, 2018, shall continue to operate under and be subject to the 11 requirements of this chapter. 12 Sec. 22. Section 257.6, subsection 1, paragraph a, Code 13 2018, is amended by adding the following new subparagraph: 14 NEW SUBPARAGRAPH . (8) Resident pupils enrolled in a charter 15 school under chapter 256E or 256F. 16 Sec. 23. Section 257.31, subsection 5, paragraph d, Code 17 2018, is amended to read as follows: 18 d. The closing of a nonpublic school, wholly or in part, or 19 the opening or closing of a pilot charter school. 20 Sec. 24. Section 282.9, subsection 1, Code 2018, is amended 21 to read as follows: 22 1. Notwithstanding sections 275.55A , 256E.8, 256F.4 , and 23 282.18 , or any other provision to the contrary, prior to 24 knowingly enrolling an individual who is required to register 25 as a sex offender under chapter 692A , but who is otherwise 26 eligible to enroll in a public school, the board of directors 27 of a school district shall determine the educational placement 28 of the individual. Upon receipt of notice that a student who 29 is enrolled in the district is required to register as a sex 30 offender under chapter 692A , the board shall determine the 31 educational placement of the student. The tentative agenda 32 for the meeting of the board of directors at which the board 33 will consider such enrollment or educational placement shall 34 specifically state that the board is considering the enrollment 35 -36- LSB 5518YC (13) 87 md/jh 36/ 44
H.F. _____ or educational placement of an individual who is required 1 to register as a sex offender under chapter 692A . If the 2 individual is denied enrollment in a school district under this 3 section , the school district of residence shall provide the 4 individual with educational services in an alternative setting. 5 Sec. 25. Section 282.18, subsection 4, paragraph b, Code 6 2018, is amended to read as follows: 7 b. For purposes of this section , “good cause” means a change 8 in a child’s residence due to a change in family residence, a 9 change in the state in which the family residence is located, 10 a change in a child’s parents’ marital status, a guardianship 11 or custody proceeding, placement in foster care, adoption, 12 participation in a foreign exchange program, or participation 13 in a substance abuse or mental health treatment program, a 14 change in the status of a child’s resident district such as 15 removal of accreditation by the state board, surrender of 16 accreditation, or permanent closure of a nonpublic school, 17 revocation of a charter school contract as provided in section 18 256E.11 or 256F.8 , the failure of negotiations for a whole 19 grade sharing, reorganization, dissolution agreement or the 20 rejection of a current whole grade sharing agreement, or 21 reorganization plan. If the good cause relates to a change 22 in status of a child’s school district of residence, however, 23 action by a parent or guardian must be taken to file the 24 notification within forty-five days of the last board action 25 or within thirty days of the certification of the election, 26 whichever is applicable to the circumstances. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to the funding and operation of 31 educational offerings in the state by establishing an education 32 savings grant program for certain pupils attending a nonpublic 33 school and creating a new charter school program. 34 Division I of the bill provides that the Act shall be known 35 -37- LSB 5518YC (13) 87 md/jh 37/ 44
H.F. _____ and may be cited as the “Iowa Student Opportunity Act”. 1 Under division II of the bill, the following pupils who 2 attend a nonpublic school are eligible to receive an education 3 savings grant: (1) a pupil eligible to enroll in kindergarten; 4 (2) a pupil eligible to enroll in grade 1 through grade 12 5 if the pupil has attended a public school for the equivalent 6 of the two immediately preceding semesters; and (3) a pupil 7 who received an education savings grant for the immediately 8 preceding school budget year and who is eligible to enroll 9 in grade 1 through grade 12. By January 31 preceding the 10 school year for which the education savings grant is requested, 11 the parent or guardian of the pupil requesting to receive an 12 education savings grant must submit an application to the 13 department of management indicating that the parent or guardian 14 intends to enroll the pupil in a nonpublic school. 15 The bill requires that by March 1 preceding the school 16 year for which the education savings grant is requested, the 17 department of management must notify the parent or guardian of 18 each pupil approved for the following school year to receive an 19 education savings grant and the amount of the education savings 20 grant for the pupil, as specified in the bill. Education 21 savings grants must be approved for each school year and 22 applications must be submitted each year. 23 The bill creates an education savings grant fund in 24 the state treasury under the control of the department of 25 management consisting of moneys appropriated to the department 26 of management for the purpose of providing education savings 27 grants. For the fiscal year commencing July 1, 2019, and each 28 succeeding fiscal year, there is appropriated from the general 29 fund of the state to the department of management for deposit 30 in the fund the amount necessary to pay all education savings 31 grants approved for that fiscal year. For each pupil approved 32 for an education savings grant, the department of management 33 must establish an account for that pupil in the education 34 savings grant fund. The amount of the pupil’s education 35 -38- LSB 5518YC (13) 87 md/jh 38/ 44
H.F. _____ savings grant is deposited into the pupil’s account on July 1 1 and such amount is available for use by parents and guardians 2 for the payment of qualified educational expenses, as defined 3 in the bill, incurred by the parent or guardian for the pupil 4 during that fiscal year. 5 The bill authorizes the department of management to 6 contract with a private financial management firm to manage 7 the education savings grant fund, in collaboration with the 8 treasurer of state, including providing for the disbursement 9 of education savings grants in the form of an electronic debit 10 card or checks that are payable directly from the pupil’s 11 account within the fund. 12 The bill provides that moneys remaining in a pupil’s account 13 upon the conclusion of the fiscal year shall remain in the 14 pupil’s account in the education savings grant fund for the 15 payment of qualified educational expenses in future fiscal 16 years during which the pupil participates in the program or for 17 higher education costs as authorized in the bill. 18 Under the bill, for each pupil with a positive balance in 19 the pupil’s account in the education savings grant fund upon 20 graduation from high school, the department of management is 21 required to maintain the account in the fund until the pupil 22 reaches an age specified in the bill. Until the pupil reaches 23 the age limitation, moneys in the pupil’s account may be used 24 by the pupil for higher education costs, as defined in Code 25 section 12D.1. Moneys in a pupil’s account when the pupil 26 reaches the age limitation are transferred by the department of 27 management for deposit in the general fund of the state. 28 The bill provides that a person who makes a false claim for 29 the purpose of obtaining an education savings grant or who 30 knowingly receives the grant or makes a payment from an account 31 in the education savings grant fund without being legally 32 entitled to do so is guilty of a fraudulent practice and is 33 subject to a criminal penalty. The bill allows the department 34 of management to initiate legal proceedings to recover grants 35 -39- LSB 5518YC (13) 87 md/jh 39/ 44
H.F. _____ and amounts improperly awarded or paid. 1 Division II of the bill provides that an education savings 2 grant received by a taxpayer is not taxable income for purposes 3 of state individual income taxation. This provision of the 4 bill applies to tax years beginning on or after January 1, 5 2019. 6 The section of the bill enacting the education savings 7 grant program applies to school budget years and fiscal years 8 beginning on or after July 1, 2019. 9 Division III of the bill establishes a new charter school 10 program within the state under new Code chapter 256E and 11 prohibits new charter schools from being established on or 12 after July 1, 2018, under the existing charter school program, 13 Code chapter 256F. Charter schools established under Code 14 chapter 256F prior to July 1, 2018, shall continue to operate 15 under and be subject to the requirements of that Code chapter. 16 The bill creates three models by which a charter school may 17 be established: (1) founding group-school board model, under 18 which a founding group may apply to a school board for approval 19 to establish and operate a charter school within and as a part 20 of the school district either by establishing a new attendance 21 center or converting an existing attendance center; (2) school 22 board-state board model, under which a school board may create 23 a founding group to apply to the state board of education for 24 approval to establish and operate a charter school within 25 and as a part of the school district by establishing a new 26 attendance center, creating a new school within an existing 27 attendance center, or converting an existing attendance 28 center; and (3) founding group-state board model, under which 29 a founding group may apply to the state board for approval to 30 establish and operate a charter school within the boundaries of 31 the state that operates independently from any public school 32 district as a new attendance center. 33 The bill defines “founding group” to mean a person or group 34 of persons that develops and submits an application for a 35 -40- LSB 5518YC (13) 87 md/jh 40/ 44
H.F. _____ charter school to an authorizing board. The bill defines 1 “governing board” to mean the independent board of a charter 2 school whose members are elected or selected pursuant to the 3 charter school’s application and charter school contract. 4 The bill establishes requirements for charter school 5 application contents and procedure, requires the state board of 6 education to adopt rules to establish appropriate application 7 timelines and deadlines for the submission of charter school 8 applications, and establishes standards for reviewing charter 9 school applications by the authorizing board, as specified in 10 the bill. Each application review includes evaluation of the 11 written application, an in-person interview with the applicant, 12 and an opportunity in a public forum for local residents of the 13 public school district within which the applicant proposes to 14 locate the charter school to learn about and provide input on 15 each application. 16 The bill establishes provisions governing the approval 17 or denial of a charter school application and the timing of 18 such a decision, including the prohibition on approving an 19 application if the applicant has another pending charter school 20 application. The decision of the school board or the state 21 board as to a charter school application is not appealable. 22 After approval of the charter school application, the 23 applicant and the authorizing board must execute a charter 24 school contract setting forth the operational performance 25 expectations and measures by which the charter school will 26 be evaluated. An initial charter school contract shall be 27 granted for a term of five school budget years. The contract 28 may provide for requirements or conditions to govern and 29 monitor the start-up progress of an approved charter school 30 prior to the opening of the charter school including but not 31 limited to conditions to ensure that the charter school meets 32 all building, health, safety, insurance, and other legal 33 requirements. 34 A charter school established under the bill has all the 35 -41- LSB 5518YC (13) 87 md/jh 41/ 44
H.F. _____ powers necessary for carrying out the terms of the charter 1 school contract including those powers specified in the bill. 2 A charter school established under the bill is exempt from 3 all state statutes and rules and any local rule, regulation, 4 or policy applicable to a noncharter school, except that 5 the charter school shall do all of the following: (1) meet 6 all applicable federal, state, and local health and safety 7 requirements and laws prohibiting discrimination on the 8 basis of race, creed, color, sex, sexual orientation, gender 9 identity, national origin, religion, ancestry, or disability; 10 (2) operate as a nonsectarian, nonreligious school; (3) be 11 free of tuition and application fees to Iowa resident students 12 between the ages of 5 and 21 years; (4) be subject to and 13 comply with Code chapters 216 and 216A relating to civil 14 and human rights; (5) provide special education services in 15 accordance with Code chapter 256B; (6) be subject to the same 16 financial audits, audit procedures, and audit requirements 17 as a school district; (7) be subject to and comply with the 18 provisions of Code chapter 285 relating to the transportation 19 of students; (8) be subject to and comply with the education 20 program and testing requirements of Code section 256.7(21) and 21 the educational standards of Code section 256.11; (9) provide 22 instruction for at least the number of days or hours required 23 by Code section 279.10, subsection 1; and (10) be subject to 24 the construction bidding requirements of Code chapter 26. 25 The bill requires a charter school to employ or contract 26 with teachers who hold a valid license with an endorsement for 27 the type of instruction or service for which the teacher is 28 employed or under contract and establishes requirements for 29 charter schools relating to enrollment and admissions policies. 30 Upon enrollment of an eligible student, the charter school is 31 required to notify the public school district of residence. 32 Each student enrolled in a charter school established 33 under the bill shall be counted, for state school foundation 34 purposes, in the student’s district of residence. The school 35 -42- LSB 5518YC (13) 87 md/jh 42/ 44
H.F. _____ district of residence is then required to pay to the charter 1 school in which the student is enrolled an amount equal to the 2 sum of the following: (1) the regular program state cost per 3 pupil for the previous school year; (2) the teacher salary 4 supplement state cost per pupil for the previous fiscal year; 5 (3) the professional development supplement state cost per 6 pupil for the previous fiscal year; (4) the early intervention 7 supplement state cost per pupil for the previous fiscal year; 8 (5) the area education agency teacher salary supplement state 9 cost per pupil for the previous fiscal year; (6) the area 10 education agency professional development supplement state cost 11 per pupil for the previous fiscal year; (7) the state media 12 services cost per pupil for the previous fiscal year; (8) the 13 special education support services state cost per pupil for 14 the previous fiscal year; (9) the state educational services 15 cost per pupil for the previous fiscal year; (10) any moneys 16 the school district receives as a result of the student’s 17 non-English speaking weighting for the previous fiscal year; 18 and (11) any moneys the school district receives as a result of 19 the student’s enrollment in special education programs. The 20 bill establishes provisions relating to the distribution of 21 eligible federal funds and disbursement of state transportation 22 funding to charter schools. The bill also establishes 23 provisions governing the payments to charter schools in the 24 first year of operation. 25 The bill establishes requirements for the performance 26 provisions within the charter school contract that will guide 27 the evaluation of the charter school by the authorizing board. 28 The authorizing board is required to monitor the performance 29 and compliance of each charter school it approves, including 30 collecting and analyzing data according to the charter school 31 contract in order to meet the requirements of the charter 32 school contract and the bill. As part of the charter school 33 contract, the charter school may be required to submit an 34 annual report to assist the authorizing board in evaluating 35 -43- LSB 5518YC (13) 87 md/jh 43/ 44
H.F. _____ the charter school’s performance and compliance with the 1 performance framework. 2 The bill also establishes provisions to govern situations 3 where a charter school’s performance under the charter school 4 contract or compliance with applicable laws or rules is 5 unsatisfactory, including the authority to take appropriate 6 corrective actions, impose sanctions, or revoke the contract. 7 A charter school contract may be renewed for periods of 8 time not to exceed an additional five years. The bill also 9 establishes provisions that govern the renewal process for a 10 charter school contract, including standards under which the 11 authorizing board must operate when reviewing a charter school 12 contract renewal application. 13 The bill requires that, prior to any charter school closure 14 decision, the authorizing board must develop a charter school 15 closure protocol to ensure timely notice to parents, provide 16 for the orderly transition of students and student records to 17 new schools, and to provide proper disposition of school funds, 18 property, and assets. The bill also specifies the priority to 19 be used when satisfying obligations of a charter school after 20 its closure. 21 Under the bill, each charter school is required to prepare 22 and file an annual report with the department of education, 23 the contents of which shall be determined by the department 24 by rule. The state board of education is required to prepare 25 and file with the general assembly by December 1, annually, a 26 comprehensive report including items specified in the bill, 27 along with findings and recommendations relating to the charter 28 school program in the state and whether the charter school 29 program is meeting the goals and purposes of the program. 30 -44- LSB 5518YC (13) 87 md/jh 44/ 44