Senate File 29 - Introduced SENATE FILE 29 BY ZAUN A BILL FOR An Act relating to education by modifying the duties and 1 authority of certain state and local governmental entities, 2 establishing an education savings grant program and fund, 3 making appropriations, providing penalties, and including 4 effective date and applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1270XS (3) 87 md/sc
S.F. 29 DIVISION I 1 REPEAL OF DEPARTMENT OF EDUCATION AND 2 STATE BOARD OF EDUCATION 3 Section 1. NEW SECTION . 256B.16 Transfer of authority and 4 duties. 5 1. Beginning July 1, 2018, the authority and duties of the 6 department of education, the division of special education 7 created under section 256B.1, the state board of education, and 8 the director of the department of education under this chapter 9 shall to the extent feasible be transferred to the appropriate 10 area education agency where such special education services 11 are being provided. Accordingly, beginning July 1, 2018, all 12 references to the department of education or the division of 13 special education under this chapter and references to the 14 department of education or the division of special education 15 under other provisions of law relating to this chapter shall 16 mean the applicable area education agency and all references to 17 the state board of education or the director of the department 18 of education under this chapter or other provisions of law 19 relating to this chapter shall mean the board of directors of 20 the area education agency and the administrator of the area 21 education agency respectively. 22 2. Any moneys remaining in any account or fund under the 23 control of the department of education at the conclusion 24 of the fiscal year beginning July 1, 2017, relative to 25 the provisions of this chapter shall be transferred to the 26 control of the department of human services for such purposes. 27 Notwithstanding section 8.33, the moneys transferred in 28 accordance with this subsection shall not revert to the account 29 or fund from which appropriated or transferred. 30 3. Any contract entered into by the department of education 31 relating to the provisions of this chapter in effect at the 32 conclusion of the fiscal year beginning July 1, 2017, shall 33 continue in full force and effect pending transfer of such 34 contracts to the area education agencies. 35 -1- LSB 1270XS (3) 87 md/sc 1/ 49
S.F. 29 4. Any rule, regulation, form, order, or directive 1 promulgated by the department of education relative to the 2 provisions of this chapter in existence at the conclusion of 3 the fiscal year beginning July 1, 2017, shall continue in full 4 force and effect. 5 5. In regard to updating references and format in the Iowa 6 administrative code in order to correspond to the transferring 7 of duties of this chapter, the administrative rules coordinator 8 and the administrative rules review committee, in consultation 9 with the administrative code editor, shall jointly develop a 10 schedule for the necessary updating of the Iowa administrative 11 code. 12 Sec. 2. Section 256C.1, Code 2017, is amended to read as 13 follows: 14 256C.1 Definitions. 15 As used in this chapter : 16 1. “Approved local program” means a school district’s 17 program for four-year-old children approved by the department 18 of education to provide high quality preschool instruction . 19 2. “Department” means the department of education. 20 3. “Director” means the director of the department of 21 education. 22 4. 2. “Preschool program” means the statewide preschool 23 program for four-year-old children created in accordance with 24 this chapter . 25 5. 3. “School district approved to participate in the 26 preschool program” means a school district that meets the 27 school district requirements under section 256C.3 and has been 28 approved by the department to participate in the preschool 29 program . 30 6. “State board” means the state board of education. 31 Sec. 3. Section 256C.2, subsection 2, Code 2017, is amended 32 by striking the subsection. 33 Sec. 4. Section 256C.3, subsection 2, paragraph a, 34 subparagraph (3), Code 2017, is amended to read as follows: 35 -2- LSB 1270XS (3) 87 md/sc 2/ 49
S.F. 29 (3) The individual possesses a bachelor’s or graduate 1 degree from an accredited college or university with a major 2 in early childhood education or other appropriate major 3 identified in rule by the department as determined by the 4 school district’s board of directors . 5 Sec. 5. Section 256C.3, subsection 3, unnumbered paragraph 6 1, Code 2017, is amended to read as follows: 7 The state board shall adopt rules to further define the 8 following preschool program requirements which shall be used to 9 determine whether or not a Each local program implemented by 10 a school district approved to implement the preschool program 11 qualifies as an approved local program shall address or conform 12 with all of the following : 13 Sec. 6. Section 256C.3, subsection 3, paragraph e, Code 14 2017, is amended to read as follows: 15 e. Collaboration with participating families, early care 16 providers, and community partners including but not limited to 17 early childhood Iowa area boards, head start programs, shared 18 visions and other programs provided under the auspices of the 19 child development coordinating council , licensed child care 20 centers, registered child development homes, area education 21 agencies, child care resource and referral services provided 22 under section 237A.26 , early childhood special education 23 programs, services funded by Tit. I of the federal Elementary 24 and Secondary Education Act of 1965, and family support 25 programs. 26 Sec. 7. Section 256C.3, subsection 4, Code 2017, is amended 27 by striking the subsection and inserting in lieu thereof the 28 following: 29 4. School district requirements. 30 a. Subject to implementation of chapter 28E agreements 31 between a school district and community-based providers of 32 services to four-year-old children, a four-year-old child who 33 is enrolled in a child care center or child development home 34 licensed or registered under chapter 237A, or in an existing 35 -3- LSB 1270XS (3) 87 md/sc 3/ 49
S.F. 29 public or private preschool program, shall be eligible for 1 services provided by the school district’s local preschool 2 program. 3 b. Professional development for school district preschool 4 teachers shall be addressed in the school district’s 5 professional development plan implemented in accordance with 6 section 284.6. 7 Sec. 8. Section 256C.3, subsection 5, Code 2017, is amended 8 by striking the subsection. 9 Sec. 9. Section 256C.4, subsection 1, paragraph d, Code 10 2017, is amended to read as follows: 11 d. Preschool foundation aid funding shall not be commingled 12 with the other state aid payments made under section 257.16 13 to a school district and shall be accounted for by the local 14 school district separately from the other state aid payments. 15 Preschool foundation aid payments made to school districts 16 are miscellaneous income for purposes of chapter 257 . A 17 school district shall maintain a separate listing within its 18 budget for preschool foundation aid payments received and 19 expenditures made. A school district shall certify to the 20 department of education that preschool Preschool foundation aid 21 funding received by the school district was shall be used to 22 supplement, not supplant, moneys otherwise received and used by 23 the school district for preschool programming. 24 Sec. 10. Section 256C.4, subsection 2, paragraph b, Code 25 2017, is amended to read as follows: 26 b. The enrollment count of eligible students shall not 27 include a child who is included in the enrollment count 28 determined under section 257.6 or a child who is served by 29 a program already receiving state or federal funds for the 30 purpose of the provision of four-year-old preschool programming 31 while the child is being served by the program. Such preschool 32 programming includes but is not limited to child development 33 assistance programs provided under chapter 256A , special 34 education programs provided under section 256B.9 , school ready 35 -4- LSB 1270XS (3) 87 md/sc 4/ 49
S.F. 29 children grant programs and other programs provided under 1 chapter 256I , and federal head start programs and the services 2 funded by Tit. I of the federal Elementary and Secondary 3 Education Act of 1965. 4 Sec. 11. Section 256C.5, subsection 2, Code 2017, is amended 5 to read as follows: 6 2. Preschool foundation aid district amount. 7 a. For the initial school year for which a school district 8 approved to participate in the preschool program receives that 9 approval and implements the preschool program, the funding for 10 the preschool foundation aid payable to that school district 11 shall be paid from the appropriation made for that school year 12 in section 256C.6 , Code 2011, or in another appropriation 13 made for purposes of this chapter . For that school year, the 14 preschool foundation aid payable to the school district is 15 the product of the regular program state cost per pupil for 16 the school year multiplied by sixty percent of the school 17 district’s eligible student enrollment on the date in the 18 school year determined by rule . 19 b. For budget years subsequent to the initial school year 20 for which a school district approved to participate in the 21 preschool program receives that initial approval and implements 22 the preschool program, the funding for the preschool foundation 23 aid payable to that school district shall be paid from the 24 appropriation made in section 257.16 . Continuation of a 25 school district’s participation in the preschool program for 26 a second or subsequent budget year is subject to the approval 27 of the department based upon the school district’s compliance 28 with accountability provisions and the department’s on-site 29 review of the school district’s implementation of the preschool 30 program. 31 Sec. 12. Section 256C.5, subsection 4, Code 2017, is amended 32 by striking the subsection. 33 Sec. 13. NEW SECTION . 256F.12 Transfer of authority and 34 duties. 35 -5- LSB 1270XS (3) 87 md/sc 5/ 49
S.F. 29 1. Beginning July 1, 2018, the authority and duties of the 1 department of education, the state board, and the director of 2 the department of education under this chapter, to the extent 3 feasible, shall be transferred to the board of directors of 4 the community college serving the merged area in which the 5 charter school or innovation zone school, or such proposed 6 school, is located. Accordingly, beginning July 1, 2018, all 7 references to the department of education, the state board of 8 education, and the director of the department of education 9 under this chapter or other provisions of law relating to this 10 chapter shall mean the board of directors of the community 11 college serving the merged area in which the charter school or 12 innovation zone school, or such proposed school, is located. 13 2. Any contract entered into by the department of education 14 relating to the provisions of this chapter in effect at the 15 conclusion of the fiscal year beginning July 1, 2017, shall 16 continue in full force and effect pending transfer of such 17 contracts to the appropriate community college board of 18 directors. 19 3. Any rule, regulation, form, order, or directive 20 promulgated by the department of education relative to the 21 provisions of this chapter in existence at the conclusion of 22 the fiscal year beginning July 1, 2017, shall continue in full 23 force and effect. 24 Sec. 14. NEW SECTION . 256H.4 Transfer of authority and 25 duties. 26 1. Beginning July 1, 2018, the authority and duties of the 27 department of education and the director of the department 28 of education under this chapter shall be transferred to the 29 adjutant general of the state. Accordingly, beginning July 1, 30 2018, all references to the department of education and the 31 director of the department of education under this chapter or 32 other provisions of law relating to this chapter shall mean 33 adjutant general of the state. 34 2. Any contract entered into by the department of education 35 -6- LSB 1270XS (3) 87 md/sc 6/ 49
S.F. 29 relating to the provisions of this chapter in effect at the 1 conclusion of the fiscal year beginning July 1, 2017, shall 2 continue in full force and effect pending transfer of such 3 contracts to the adjutant general of the state. 4 3. Any rule, regulation, form, order, or directive 5 promulgated by the department of education relative to the 6 provisions of this chapter in existence upon conclusion of the 7 fiscal year beginning July 1, 2017, shall continue in full 8 force and effect. 9 Sec. 15. NEW SECTION . 256I.14 Transfer of authority and 10 duties. 11 1. Beginning July 1, 2018, the authority and duties of the 12 department of education and the director of the department 13 of education under this chapter shall be transferred to the 14 department of management and the director of the department 15 of management. Accordingly, beginning July 1, 2018, all 16 references to the department of education or the director of 17 the department of education under this chapter or under other 18 provisions of law relating to this chapter shall mean the 19 department of management and the director of the department of 20 management. 21 2. Any moneys remaining in any account or fund under the 22 control of the department of education at the conclusion of the 23 fiscal year beginning July 1, 2017, relative to the provisions 24 of this chapter shall be transferred to the control of the 25 department of management for such purposes. Notwithstanding 26 section 8.33, the moneys transferred in accordance with this 27 subsection shall not revert to the account or fund from which 28 appropriated or transferred. 29 3. Any contract entered into by the department of education 30 relating to the provisions of this chapter in effect at the 31 conclusion of the fiscal year beginning July 1, 2017, shall 32 continue in full force and effect pending transfer of such 33 contracts to the department of management. 34 4. Any rule, regulation, form, order, or directive 35 -7- LSB 1270XS (3) 87 md/sc 7/ 49
S.F. 29 promulgated by the department of education relative to the 1 provisions of this chapter in existence at the conclusion of 2 the fiscal year beginning July 1, 2017, shall continue in full 3 force and effect until amended, repealed, or supplemented by 4 affirmative action of the department of management under the 5 duties and powers established in this chapter and under the 6 procedure established in subsection 5. 7 5. In regard to updating references and format in the Iowa 8 administrative code in order to correspond to the transferring 9 of duties of this chapter, the administrative rules coordinator 10 and the administrative rules review committee, in consultation 11 with the administrative code editor, shall jointly develop a 12 schedule for the necessary updating of the Iowa administrative 13 code. 14 Sec. 16. Section 257C.5, subsection 1, Code 2017, is amended 15 to read as follows: 16 1. The powers of the authority are vested in and exercised 17 by a board consisting of five members, including the treasurer 18 of state, the director of the department of education, and the 19 director of the department of management, and two three members 20 appointed by the governor, subject to confirmation by the 21 senate. The state officials may designate representatives to 22 serve on the board for them. As far as possible, the governor 23 shall appoint members who are knowledgeable or experienced in 24 the school systems of this state or in finance. 25 Sec. 17. NEW SECTION . 258.18 Transfer of authority and 26 duties. 27 1. Beginning July 1, 2018, the authority and duties of the 28 department of education, the state board of education, and the 29 director of the department of education under this chapter 30 shall be transferred to the department of workforce development 31 and the director of the department of workforce development. 32 Accordingly, beginning July 1, 2018, all references to the 33 department of education under this chapter and references 34 to the department of education under other provisions of 35 -8- LSB 1270XS (3) 87 md/sc 8/ 49
S.F. 29 law relating to this chapter shall mean the department of 1 workforce development and all references to the state board 2 of education or the director of the department of education 3 under this chapter or other provisions of law relating to this 4 chapter shall mean the director of the department of workforce 5 development. 6 2. Any moneys remaining in any account or fund under the 7 control of the department of education at the conclusion 8 of the fiscal year beginning July 1, 2017, relative to the 9 provisions of this chapter shall be transferred to the control 10 of the department of workforce development for such purposes. 11 Notwithstanding section 8.33, the moneys transferred in 12 accordance with this subsection shall not revert to the account 13 or fund from which appropriated or transferred. 14 3. Any contract entered into by the department of education 15 relating to the provisions of this chapter in effect at the 16 conclusion of the fiscal year beginning July 1, 2017, shall 17 continue in full force and effect pending transfer of such 18 contracts to the department of workforce development. 19 4. Any rule, regulation, form, order, or directive 20 promulgated by the department of education relative to the 21 provisions of this chapter in existence at the conclusion of 22 the fiscal year beginning July 1, 2017, shall continue in full 23 force and effect until amended, repealed, or supplemented by 24 affirmative action of the department of workforce development 25 under the duties and powers established in this chapter and 26 under the procedure established in subsection 5. 27 5. In regard to updating references and format in the Iowa 28 administrative code in order to correspond to the transferring 29 of duties of this chapter, the administrative rules coordinator 30 and the administrative rules review committee, in consultation 31 with the administrative code editor, shall jointly develop a 32 schedule for the necessary updating of the Iowa administrative 33 code. 34 Sec. 18. NEW SECTION . 259.1A Transfer of authority and 35 -9- LSB 1270XS (3) 87 md/sc 9/ 49
S.F. 29 duties. 1 1. Beginning July 1, 2018, the authority and duties of the 2 department of education, the state board of education, and the 3 director of the department of education under this chapter 4 shall be transferred to the department of workforce development 5 and the director of the department of workforce development. 6 Accordingly, beginning July 1, 2018, all references to the 7 department of education under this chapter and references 8 to the department of education under other provisions of 9 law relating to this chapter shall mean the department of 10 workforce development and all references to the state board 11 of education or the director of the department of education 12 under this chapter or other provisions of law relating to this 13 chapter shall mean the director of the department of workforce 14 development. 15 2. Beginning July 1, 2018, the division of vocational 16 rehabilitation services created within the department of 17 education under section 259.3 shall be transferred to the 18 department of workforce development. 19 3. Any moneys remaining in any account or fund under the 20 control of the department of education at the conclusion 21 of the fiscal year beginning July 1, 2017, relative to the 22 provisions of this chapter shall be transferred to the control 23 of the department of workforce development for such purposes. 24 Notwithstanding section 8.33, the moneys transferred in 25 accordance with this subsection shall not revert to the account 26 or fund from which appropriated or transferred. 27 4. Any contract entered into by the department of education 28 relating to the provisions of this chapter in effect at the 29 conclusion of the fiscal year beginning July 1, 2017, shall 30 continue in full force and effect pending transfer of such 31 contracts to the department of workforce development. 32 5. Any rule, regulation, form, order, or directive 33 promulgated by the department of education relative to the 34 provisions of this chapter in existence at the conclusion of 35 -10- LSB 1270XS (3) 87 md/sc 10/ 49
S.F. 29 the fiscal year beginning July 1, 2017, shall continue in full 1 force and effect until amended, repealed, or supplemented by 2 affirmative action of the department of workforce development 3 under the duties and powers established in this chapter and 4 under the procedure established in subsection 6. 5 6. In regard to updating references and format in the Iowa 6 administrative code in order to correspond to the transferring 7 of duties of this chapter, the administrative rules coordinator 8 and the administrative rules review committee, in consultation 9 with the administrative code editor, shall jointly develop a 10 schedule for the necessary updating of the Iowa administrative 11 code. 12 Sec. 19. Section 259A.1, Code 2017, is amended to read as 13 follows: 14 259A.1 Tests. 15 The department of education Each board of directors of 16 the community college serving the merged area shall cause to 17 be made available for qualified individuals a high school 18 equivalency diploma. The diploma shall be issued on the basis 19 of satisfactory competence as shown by tests covering all of 20 the following: reading, language arts, literacy, mathematics, 21 science, and social studies. 22 Sec. 20. Section 259A.2, unnumbered paragraph 2, Code 2017, 23 is amended to read as follows: 24 Application shall be made to a testing center approved 25 by the department of education board of directors of the 26 community college serving the merged area , accompanied by an 27 application fee in an amount prescribed by the department board 28 of directors of the community college . The test scores shall 29 be forwarded by the scorer of the test to the department board 30 of directors of the community college . 31 Sec. 21. Section 259A.3, Code 2017, is amended to read as 32 follows: 33 259A.3 Notice and fee. 34 Any applicant who has achieved the minimum passing standards 35 -11- LSB 1270XS (3) 87 md/sc 11/ 49
S.F. 29 as established by the department, and approved by the state 1 board, board of directors of the community college shall be 2 issued a high school equivalency diploma by the department upon 3 payment of an additional amount determined in rules adopted by 4 the state board of education by the board to cover the actual 5 costs of the production and distribution of the diploma. The 6 state board of education may also by rule establish a fee for 7 the issuance or verification of a transcript which shall be 8 based on the actual costs of the production or verification of 9 a transcript. 10 Sec. 22. Section 259A.4, Code 2017, is amended to read as 11 follows: 12 259A.4 Use of fees. 13 The fees collected under the provisions of this chapter 14 shall be used for the expenses incurred in administering, 15 providing test materials, scoring of examinations and issuance 16 of high school equivalency diplomas, and shall be disbursed 17 on the authorization of the director of the department of 18 education board of directors of the community college . The 19 treasurer of state shall be custodian of the funds paid to the 20 department community college and shall disburse the same on 21 vouchers audited as provided by law. The unobligated balance 22 in such funds at the close of each biennium shall be placed in 23 the general fund of the state. 24 Sec. 23. Section 259A.5, Code 2017, is amended to read as 25 follows: 26 259A.5 Rules. 27 The director of the department of education Each board 28 of directors of the community college shall adopt tests, 29 definitions of terms, and forms as necessary for the 30 administration of this chapter . The state board shall adopt 31 rules under chapter 17A to carry out this chapter . 32 Sec. 24. NEW SECTION . 260C.1A Transfer of authority and 33 duties. 34 1. Beginning July 1, 2018, the authority and duties of the 35 -12- LSB 1270XS (3) 87 md/sc 12/ 49
S.F. 29 department of education, the state board of education, and the 1 director of the department of education under this chapter 2 shall, to the extent feasible, be transferred to the boards of 3 directors of the community colleges serving the merged areas of 4 the state. Accordingly, beginning July 1, 2018, all references 5 to the department of education, the state board of education, 6 and the director of the department of education under this 7 chapter and references to the department of education, the 8 state board of education, and the director of the department 9 of education under other provisions of law relating to this 10 chapter shall mean the applicable board of directors of a 11 community college. 12 2. Beginning July 1, 2018, transfer of the duties and 13 authority of the department shall also include all duties and 14 authority of the community colleges division created within the 15 department of education under section 260C.6. 16 3. Any moneys remaining in any account or fund under the 17 control of the department of education at the conclusion of the 18 fiscal year beginning July 1, 2017, relative to the provisions 19 of this chapter shall be transferred to the control of the 20 applicable board of directors of a community college for such 21 purposes. Notwithstanding section 8.33, the moneys transferred 22 in accordance with this subsection shall not revert to the 23 account or fund from which appropriated or transferred. 24 4. Any contract entered into by the department of education 25 relating to the provisions of this chapter in effect at the 26 conclusion of the fiscal year beginning July 1, 2017, shall 27 continue in full force and effect pending transfer of such 28 contracts to the boards of directors of the community colleges. 29 5. Any rule, regulation, form, order, or directive 30 promulgated by the department of education relative to the 31 provisions of this chapter in existence at the conclusion of 32 the fiscal year beginning July 1, 2017, shall continue in full 33 force and effect. 34 Sec. 25. Section 260E.7, subsection 1, Code 2017, is amended 35 -13- LSB 1270XS (3) 87 md/sc 13/ 49
S.F. 29 to read as follows: 1 1. The economic development authority, in consultation with 2 the department of education, the department of revenue , and 3 the department of workforce development, shall coordinate and 4 review the new jobs training program. The economic development 5 authority shall adopt, amend, and repeal rules under chapter 6 17A that the community college will use in developing projects 7 with new and expanding industrial new jobs training proposals 8 and that the economic development authority shall use to review 9 and report on the new jobs training program as required in this 10 section . 11 Sec. 26. Section 260F.3, subsection 5, Code 2017, is amended 12 to read as follows: 13 5. Other criteria established by the department authority . 14 Sec. 27. Section 260F.6B, Code 2017, is amended to read as 15 follows: 16 260F.6B High technology apprenticeship program. 17 The community colleges and the authority are authorized 18 to fund high technology apprenticeship programs which comply 19 with the requirements specified in section 260C.44 and which 20 may include both new and statewide apprenticeship programs. 21 Notwithstanding the provisions of section 260F.6, subsection 22 2 , relating to maximum award amounts, moneys allocated to 23 the community colleges with high technology apprenticeship 24 programs shall be distributed to the community colleges based 25 upon contact hours under the programs administered during the 26 prior fiscal year as determined by the department of education 27 authority . The authority shall adopt rules governing this 28 section ’s operation and participant eligibility. 29 Sec. 28. Section 260F.7, Code 2017, is amended to read as 30 follows: 31 260F.7 Authority to coordinate. 32 The authority, in consultation with the department of 33 education and the department of workforce development, shall 34 coordinate the jobs training program. A project shall not be 35 -14- LSB 1270XS (3) 87 md/sc 14/ 49
S.F. 29 funded under this chapter unless the authority approves the 1 project. The authority shall adopt rules pursuant to chapter 2 17A governing the program’s operation and eligibility for 3 participation in the program. The authority shall establish 4 by rule criteria for determining what constitutes an eligible 5 business. 6 Sec. 29. Section 260H.2, subsection 1, Code 2017, is amended 7 to read as follows: 8 1. A pathways for academic career and employment program 9 is established to provide funding to community colleges 10 for the development of projects in coordination with the 11 economic development authority, the department of education, 12 the department of workforce development, local workforce 13 development boards established pursuant to section 84A.4 , and 14 community partners to implement a simplified, streamlined, and 15 comprehensive process, along with customized support services, 16 to enable eligible participants to acquire effective academic 17 and employment training to secure gainful, quality, in-state 18 employment. 19 Sec. 30. Section 260H.2, subsection 2, paragraph a, Code 20 2017, is amended to read as follows: 21 a. A pathways for academic career and employment fund 22 is created for the community colleges in the state treasury 23 to be administered by the department of education economic 24 development authority . The moneys in the pathways for academic 25 career and employment fund are appropriated to the department 26 of education economic development authority for the pathways 27 for academic career and employment program. 28 Sec. 31. Section 260H.8, Code 2017, is amended to read as 29 follows: 30 260H.8 Rules. 31 The department of education authority , in consultation with 32 the community colleges , the economic development authority, 33 and the department of workforce development, shall adopt rules 34 pursuant to chapter 17A and this chapter to implement the 35 -15- LSB 1270XS (3) 87 md/sc 15/ 49
S.F. 29 provisions of this chapter . Local workforce development boards 1 established pursuant to section 84A.4 shall be consulted in the 2 development and implementation of rules to be adopted pursuant 3 to this chapter . 4 Sec. 32. Section 260I.2, subsection 2, paragraph a, Code 5 2017, is amended to read as follows: 6 a. There is established for the community colleges 7 a gap tuition assistance fund in the state treasury to 8 be administered by the department of education economic 9 development authority . The funds in the gap tuition assistance 10 fund are appropriated to the department of education economic 11 development authority for the gap tuition assistance program. 12 Sec. 33. Section 260I.3, subsection 1, Code 2017, is amended 13 to read as follows: 14 1. The department of education, in consultation with the 15 economic development authority , shall adopt rules pursuant to 16 this chapter defining eligibility criteria for persons applying 17 to receive tuition assistance under this chapter . 18 Sec. 34. Section 260I.10, Code 2017, is amended to read as 19 follows: 20 260I.10 Oversight. 21 1. The department of education economic development 22 authority , in coordination with the community colleges, shall 23 establish a steering committee. The steering committee shall 24 determine if the performance measures of the gap tuition 25 assistance program are being met and shall take necessary steps 26 to correct any deficiencies. The steering committee shall meet 27 at least quarterly to evaluate and monitor the performance of 28 the gap tuition assistance program. 29 2. The department of education economic development 30 authority , in coordination with the community colleges, 31 shall develop a common intake tracking system that shall be 32 implemented consistently by each participating community 33 college. 34 3. The department of education economic development 35 -16- LSB 1270XS (3) 87 md/sc 16/ 49
S.F. 29 authority shall coordinate statewide oversight, evaluation, and 1 reporting efforts for the gap tuition assistance program. 2 Sec. 35. Section 260I.11, Code 2017, is amended to read as 3 follows: 4 260I.11 Rules. 5 The department of education economic development authority , 6 in consultation with the economic development authority and the 7 community colleges, shall adopt rules pursuant to chapter 17A 8 and this chapter to implement the provisions of this chapter . 9 Sec. 36. Section 261.1, subsection 2, paragraph b, Code 10 2017, is amended by striking the paragraph. 11 Sec. 37. NEW SECTION . 261.8 Transfer of authority and 12 duties. 13 1. Beginning July 1, 2018, the authority and duties of the 14 department of education, the state board of education, and the 15 director of the department of education under this chapter 16 shall be transferred to the college student aid commission. 17 Accordingly, beginning July 1, 2018, all references to the 18 department of education or the director of the department of 19 education under this chapter and references to the department 20 of education or the director of the department of education 21 under other provisions of law relating to this chapter shall 22 mean the college student aid commission. 23 2. Any moneys remaining in any account or fund under the 24 control of the department of education at the conclusion 25 of the fiscal year beginning July 1, 2017, relative to the 26 provisions of this chapter shall be transferred to the control 27 of the college student aid commission for such purposes. 28 Notwithstanding section 8.33, the moneys transferred in 29 accordance with this subsection shall not revert to the account 30 or fund from which appropriated or transferred. 31 3. Any contract entered into by the department of education 32 relating to the provisions of this chapter in effect at the 33 conclusion of the fiscal year beginning July 1, 2017, shall 34 continue in full force and effect pending transfer of such 35 -17- LSB 1270XS (3) 87 md/sc 17/ 49
S.F. 29 contracts to the college student aid commission. 1 4. Any rule, regulation, form, order, or directive 2 promulgated by the department of education relative to the 3 provisions of this chapter in existence at the conclusion of 4 the fiscal year beginning July 1, 2017, shall continue in full 5 force and effect until amended, repealed, or supplemented by 6 affirmative action of the college student aid commission under 7 the duties and powers established in this chapter and under the 8 procedure established in subsection 5. 9 5. In regard to updating references and format in the Iowa 10 administrative code in order to correspond to the transferring 11 of duties of this chapter, the administrative rules coordinator 12 and the administrative rules review committee, in consultation 13 with the administrative code editor, shall jointly develop a 14 schedule for the necessary updating of the Iowa administrative 15 code. 16 Sec. 38. NEW SECTION . 261E.1A Transfer of authority and 17 duties. 18 1. Beginning July 1, 2018, the authority and duties of 19 the department of education, the state board of education, 20 and the director of the department of education under this 21 chapter shall be transferred to the state board of regents. 22 Accordingly, beginning July 1, 2018, all references to the 23 department of education, the state board of education, or the 24 director of the department of education under this chapter 25 and references to the department of education, state board of 26 education, or director of the department of education under 27 other provisions of law relating to this chapter shall mean the 28 state board of regents. 29 2. Any moneys remaining in any account or fund under the 30 control of the department of education at the conclusion of the 31 fiscal year beginning July 1, 2017, relative to the provisions 32 of this chapter shall be transferred to the control of the 33 state board of regents for such purposes. Notwithstanding 34 section 8.33, the moneys transferred in accordance with this 35 -18- LSB 1270XS (3) 87 md/sc 18/ 49
S.F. 29 subsection shall not revert to the account or fund from which 1 appropriated or transferred. 2 3. Any contract entered into by the department of education 3 relating to the provisions of this chapter in effect at the 4 conclusion of the fiscal year beginning July 1, 2017, shall 5 continue in full force and effect pending transfer of such 6 contracts to the state board of regents. 7 4. Any rule, regulation, form, order, or directive 8 promulgated by the department of education relative to the 9 provisions of this chapter in existence at the conclusion of 10 the fiscal year beginning July 1, 2017, shall continue in full 11 force and effect until amended, repealed, or supplemented by 12 affirmative action of the state board of regents under the 13 duties and powers established in this chapter and under the 14 procedure established in subsection 5. 15 5. In regard to updating references and format in the Iowa 16 administrative code in order to correspond to the transferring 17 of duties of this chapter, the administrative rules coordinator 18 and the administrative rules review committee, in consultation 19 with the administrative code editor, shall jointly develop a 20 schedule for the necessary updating of the Iowa administrative 21 code. 22 Sec. 39. Section 262.9, subsection 27, Code 2017, is amended 23 to read as follows: 24 27. Explore , in conjunction with the department 25 of education, the need for coordination between school 26 districts, area education agencies, state board of regents 27 institutions, and community colleges for purposes of delivery 28 of courses, use of telecommunications, transportation, and 29 other similar issues. Coordination may include but is not 30 limited to coordination of calendars, programs, schedules, or 31 telecommunications emissions. The state board shall develop 32 recommendations as necessary, which shall be submitted in a 33 report to the general assembly on a timely basis. 34 Sec. 40. Section 262.9, subsection 33, unnumbered paragraph 35 -19- LSB 1270XS (3) 87 md/sc 19/ 49
S.F. 29 1, Code 2017, is amended to read as follows: 1 In consultation with the state board of education, establish 2 Establish and enter into a collective statewide articulation 3 agreement with the community colleges established pursuant to 4 chapter 260C , which shall provide for the seamless transfer 5 of academic credits from a completed associate of arts or 6 associate of science degree program offered by a community 7 college to a baccalaureate degree program offered by an 8 institution of higher education governed by the board. The 9 board shall also do the following: 10 Sec. 41. Section 262.9, subsection 33, paragraph i, Code 11 2017, is amended to read as follows: 12 i. Prepare, jointly with the department of education and 13 the liaison advisory committee on transfer students, and submit 14 by January 15 annually to the general assembly, an update on 15 the articulation efforts and activities implemented by the 16 community colleges and the institutions of higher education 17 governed by the board. 18 Sec. 42. Section 262.71, subsection 9, Code 2017, is amended 19 by striking the subsection. 20 Sec. 43. Section 266.39C, subsection 2, paragraph a, 21 subparagraph (5), Code 2017, is amended to read as follows: 22 (5) One representative of community colleges, appointed by 23 the state board of education governor . 24 Sec. 44. Section 266.39C, subsection 6, Code 2017, is 25 amended to read as follows: 26 6. The Iowa energy center shall cooperate with the state 27 board of education in developing develop a curriculum which 28 promotes energy efficiency and conservation. 29 Sec. 45. Section 272.1, subsection 4, Code 2017, is amended 30 by striking the subsection. 31 Sec. 46. NEW SECTION . 272.1A Transfer of authority and 32 duties. 33 1. Beginning July 1, 2018, the authority and duties of the 34 department of education, the state board of education, and the 35 -20- LSB 1270XS (3) 87 md/sc 20/ 49
S.F. 29 director of the department of education under this chapter 1 shall be transferred to the board of educational examiners. 2 Accordingly, beginning July 1, 2018, all references to the 3 department of education, the state board of education, or the 4 director of the department of education under this chapter 5 and references to the department of education, state board of 6 education, or director of the department of education under 7 other provisions of law relating to this chapter shall mean the 8 board of educational examiners. 9 2. Any moneys remaining in any account or fund under the 10 control of the department of education at the conclusion 11 of the fiscal year beginning July 1, 2017, relative to the 12 provisions of this chapter shall be transferred to the control 13 of the board of educational examiners for such purposes. 14 Notwithstanding section 8.33, the moneys transferred in 15 accordance with this subsection shall not revert to the account 16 or fund from which appropriated or transferred. 17 3. Any contract entered into by the department of education 18 relating to the provisions of this chapter in effect at the 19 conclusion of the fiscal year beginning July 1, 2017, shall 20 continue in full force and effect pending transfer of such 21 contracts to the board of educational examiners. 22 Sec. 47. Section 272.3, subsection 1, unnumbered paragraph 23 1, Code 2017, is amended to read as follows: 24 The board of educational examiners consists of twelve 25 members. Two must be members of the general public , one 26 must be the director of the department of education or the 27 director’s designee, and the remaining nine ten members must be 28 licensed practitioners. One of the public members shall have 29 served on a school board. The public members shall never have 30 held a practitioner’s license, but shall have a demonstrated 31 interest in education. The nine ten practitioners shall be 32 selected from the following areas and specialties of the 33 teaching profession: 34 Sec. 48. Section 272.3, subsection 2, Code 2017, is amended 35 -21- LSB 1270XS (3) 87 md/sc 21/ 49
S.F. 29 to read as follows: 1 2. A majority of the licensed practitioner members shall 2 be nonadministrative practitioners. Four of the members shall 3 be administrators. Membership of the board shall comply with 4 the requirements of sections 69.16 and 69.16A . A quorum of the 5 board shall consist of six members. Members shall elect a 6 chairperson of the board. Members , except for the director of 7 the department of education or the director’s designee, shall 8 be appointed by the governor subject to confirmation by the 9 senate. 10 Sec. 49. Section 272.4, subsection 1, unnumbered paragraph 11 1, Code 2017, is amended to read as follows: 12 Members , except for the director of the department of 13 education or the director’s designee, shall be appointed to 14 serve staggered terms of four years. A member shall not serve 15 more than two consecutive terms , except for the director of the 16 department of education or the director’s designee, who shall 17 serve until the director’s term of office expires . A member of 18 the board, except for the two public members and the director 19 of the department of education or the director’s designee , 20 shall hold a valid practitioner’s license during the member’s 21 term of office. A vacancy exists when any of the following 22 occur: 23 Sec. 50. Section 272.25, subsections 3, 4, and 8, Code 2017, 24 are amended to read as follows: 25 3. A requirement that the program include instruction 26 in skills and strategies to be used in classroom management 27 of individuals, and of small and large groups, under 28 varying conditions ; , skills for communicating and working 29 constructively with pupils, teachers, administrators, and 30 parents ; , preparation in reading theory, knowledge, strategies, 31 and approaches, and for integrating literacy instruction 32 into content areas in accordance with section 256.16 ; and 33 skills for understanding the role of the board of education 34 and the functions of other education agencies in the state. 35 -22- LSB 1270XS (3) 87 md/sc 22/ 49
S.F. 29 The requirement shall be based upon recommendations of the 1 department of education after consultation with teacher 2 education faculty members in colleges and universities . 3 4. A requirement that prescribes minimum experiences and 4 responsibilities to be accomplished during the student teaching 5 experience by the student teacher and by the cooperating 6 teacher based upon recommendations of the department of 7 education after consultation with teacher education faculty 8 members in colleges and universities . The student teaching 9 experience shall include opportunities for the student 10 teacher to become knowledgeable about the Iowa teaching 11 standards, including a mock evaluation performed by the 12 cooperating teacher. The mock evaluation shall not be used as 13 an assessment tool by the practitioner preparation program. 14 The student teaching experience shall consist of interactive 15 experiences involving the college or university personnel, the 16 student teacher, the cooperating teacher, and administrative 17 personnel from the cooperating teacher’s school district. 18 8. A requirement that an approved practitioner preparation 19 institution submit evidence that the college or department of 20 education is communicating with other colleges or departments 21 in the institution so that practitioner preparation students 22 may integrate teaching methodology with subject matter areas 23 of specialization. 24 Sec. 51. NEW SECTION . 273.1A Transfer of authority and 25 duties. 26 1. Beginning July 1, 2018, the authority and duties of 27 the department of education, the state board of education, 28 and the director of the department of education under this 29 chapter shall, to the extent feasible, be transferred to the 30 area education agency boards of directors in this state. 31 Accordingly, beginning July 1, 2018, all references to the 32 department of education, the state board of education, and the 33 director of the department of education under this chapter and 34 references to the department of education, the state board of 35 -23- LSB 1270XS (3) 87 md/sc 23/ 49
S.F. 29 education, and the director of the department of education 1 under other provisions of law relating to this chapter shall 2 mean the applicable area education agency board of directors. 3 2. Any rule, regulation, form, order, or directive 4 promulgated by the department of education relative to the 5 provisions of this chapter in existence at the conclusion of 6 the fiscal year beginning July 1, 2017, shall continue in full 7 force and effect. 8 Sec. 52. Section 273.2, subsection 5, unnumbered paragraph 9 1, Code 2017, is amended to read as follows: 10 The area education agency board may provide for the 11 following programs and services to local school districts , and 12 at the request of local school districts to providers of child 13 development services who have received grants under chapter 14 256A from the child development coordinating council, within 15 the limits of funds available: 16 Sec. 53. NEW SECTION . 274.1A Transfer of authority and 17 duties. 18 1. Beginning July 1, 2018, the authority and duties of the 19 department of education and the director of the department of 20 education under this chapter shall, to the extent feasible, be 21 transferred to the area education agency boards of directors 22 in this state. Accordingly, beginning July 1, 2018, all 23 references to the department of education and the director of 24 the department of education under this chapter and references 25 to the department of education and the director of the 26 department of education under other provisions of law relating 27 to this chapter shall mean the applicable area education agency 28 board of directors. 29 2. Any rule, regulation, form, order, or directive 30 promulgated by the department of education or the director 31 of the department of education relative to the provisions of 32 this chapter in existence at the conclusion of the fiscal 33 year beginning July 1, 2017, shall continue in full force and 34 effect. 35 -24- LSB 1270XS (3) 87 md/sc 24/ 49
S.F. 29 Sec. 54. NEW SECTION . 275.1A Transfer of authority and 1 duties. 2 1. Beginning July 1, 2018, the authority and duties of 3 the department of education, the state board of education, 4 and the director of the department of education under this 5 chapter shall, to the extent feasible, be transferred to the 6 area education agency boards of directors in this state. 7 Accordingly, beginning July 1, 2018, all references to the 8 department of education, the state board of education, and the 9 director of the department of education under this chapter and 10 references to the department of education, the state board of 11 education, and the director of the department of education 12 under other provisions of law relating to this chapter shall 13 mean the applicable area education agency board of directors. 14 2. Any rule, regulation, form, order, or directive 15 promulgated by the department of education, the state board 16 of education, or the director of the department of education 17 relative to the provisions of this chapter in existence at the 18 conclusion of the fiscal year beginning July 1, 2017, shall 19 continue in full force and effect. 20 Sec. 55. Section 276.3, subsections 5 and 9, Code 2017, are 21 amended by striking the subsections. 22 Sec. 56. Section 279.51, subsection 1, unnumbered paragraph 23 1, Code 2017, is amended to read as follows: 24 There is appropriated from the general fund of the state 25 to the department of education management for the fiscal year 26 beginning July 1, 2007, and each succeeding fiscal year, the 27 sum of twelve million six hundred six thousand one hundred 28 ninety-six dollars. The moneys shall be allocated as follows: 29 Sec. 57. Section 279.51, subsection 1, paragraphs b and d, 30 Code 2017, are amended by striking the paragraphs. 31 Sec. 58. Section 279.51, subsection 2, Code 2017, is amended 32 by striking the subsection. 33 Sec. 59. NEW SECTION . 279.70 Transfer of authority and 34 duties. 35 -25- LSB 1270XS (3) 87 md/sc 25/ 49
S.F. 29 1. Beginning July 1, 2018, the authority and duties of 1 the department of education, the state board of education, 2 and the director of the department of education under this 3 chapter, to the extent feasible, shall be transferred to the 4 boards of directors for the respective school districts in the 5 state. Accordingly, beginning July 1, 2018, all references to 6 the department of education, the state board of education, and 7 the director of the department of education under this chapter 8 and references to the department of education, the state board 9 of education, and the director of the department of education 10 under other provisions of law relating to this chapter shall 11 mean the applicable board of directors of the school district. 12 2. Any rule, regulation, form, order, or directive 13 promulgated by the department of education, the state board 14 of education, or the director of the department of education 15 relative to the provisions of this chapter in existence at the 16 conclusion of the fiscal year beginning July 1, 2017, shall 17 continue in full force and effect. 18 Sec. 60. NEW SECTION . 280.1A Transfer of authority and 19 duties. 20 1. Beginning July 1, 2018, the authority and duties of 21 the department of education, the state board of education, 22 and the director of the department of education under this 23 chapter, to the extent feasible, shall be transferred to the 24 boards of directors for the respective school districts in the 25 state. Accordingly, beginning July 1, 2018, all references to 26 the department of education, the state board of education, and 27 the director of the department of education under this chapter 28 and references to the department of education, the state board 29 of education, and the director of the department of education 30 under other provisions of law relating to this chapter shall 31 mean the applicable board of directors of the school district. 32 2. Any rule, regulation, form, order, or directive 33 promulgated by the department of education, the state board 34 of education, or the director of the department of education 35 -26- LSB 1270XS (3) 87 md/sc 26/ 49
S.F. 29 relative to the provisions of this chapter in existence at the 1 conclusion of the fiscal year beginning July 1, 2017, shall 2 continue in full force and effect. 3 Sec. 61. NEW SECTION . 282.1A Transfer of authority and 4 duties. 5 1. Beginning July 1, 2018, the authority and duties of 6 the department of education, the state board of education, 7 and the director of the department of education under this 8 chapter, to the extent feasible, shall be transferred to the 9 boards of directors for the respective school districts in the 10 state. Accordingly, beginning July 1, 2018, all references to 11 the department of education, the state board of education, and 12 the director of the department of education under this chapter 13 and references to the department of education, the state board 14 of education, and the director of the department of education 15 under other provisions of law relating to this chapter shall 16 mean the applicable board of directors of the school district. 17 2. Any rule, regulation, form, order, or directive 18 promulgated by the department of education, the state board 19 of education, or the director of the department of education 20 relative to the provisions of this chapter in existence at the 21 conclusion of the fiscal year beginning July 1, 2017, shall 22 continue in full force and effect. 23 Sec. 62. Section 282.18, subsections 5 and 13, Code 2017, 24 are amended to read as follows: 25 5. Open enrollment applications filed after March 1 26 of the preceding school year that do not qualify for good 27 cause as provided in subsection 4 shall be subject to the 28 approval of the board of the resident district and the board 29 of the receiving district. The parent or guardian shall send 30 notification to the district of residence and the receiving 31 district that the parent or guardian seeks to enroll the 32 parent’s or guardian’s child in the receiving district. A 33 decision of either board to deny an application filed under 34 this subsection involving repeated acts of harassment of the 35 -27- LSB 1270XS (3) 87 md/sc 27/ 49
S.F. 29 student or serious health condition of the student that the 1 resident district cannot adequately address is subject to 2 appeal under section 290.1 . The state board shall exercise 3 broad discretion to achieve just and equitable results that are 4 in the best interest of the affected child or children. 5 13. If a request under this section is for transfer to a 6 laboratory school, as described in chapter 265 , the student, 7 who is the subject of the request, shall not be included in 8 the basic enrollment of the student’s district of residence, 9 and the laboratory school shall report the enrollment of the 10 student directly to the department of education management , 11 unless the number of students from the district attending the 12 laboratory school during the current school year, as a result 13 of open enrollment under this section , exceeds the number of 14 students enrolled in the laboratory school from that district 15 during the 1989-1990 school year. If the number of students 16 enrolled in the laboratory school from a district during the 17 current year exceeds the number of students enrolled from that 18 district during the 1989-1990 school year, those students who 19 represent the difference between the current and the 1988-1989 20 school year enrollment figures shall be included in the basic 21 enrollment of the students’ districts of residence and the 22 districts shall retain any moneys received as a result of the 23 inclusion of the student in the district enrollment. The total 24 number of students enrolled at a laboratory school during a 25 school year shall not exceed six hundred seventy students. The 26 regents institution operating the laboratory school and the 27 board of directors of the school district in the community 28 in which the regents institution is located shall develop 29 a student transfer policy designed to protect and promote 30 the quality and integrity of the teacher education program 31 at the laboratory school, the viability of the education 32 program of the local school district in which the regents 33 institution is located, and to indicate the order in which and 34 reasons why requests to transfer to a laboratory school shall 35 -28- LSB 1270XS (3) 87 md/sc 28/ 49
S.F. 29 be considered. A laboratory school may deny a request for 1 transfer under the policy. A denial of a request to transfer 2 under this subsection is not subject to appeal under section 3 290.1 . 4 Sec. 63. Section 282.18, subsection 15, Code 2017, is 5 amended by striking the subsection. 6 Sec. 64. Section 283.1, Code 2017, is amended to read as 7 follows: 8 283.1 Federal funds accepted. 9 The director of the department of education management 10 is the “state educational authority” for the purpose of 11 accepting and administering funds appropriated by Congress for 12 educational purposes and the funds shall be deposited with the 13 treasurer of state and disbursed through the department of 14 administrative services on vouchers audited as provided by law. 15 When state matching funds are required as a condition to the 16 acceptance of federal funds, the director of the department 17 of education management may make expenditures for matching 18 only from funds provided by the legislature for that purpose. 19 However, when federal funds may be matched with expenditures 20 from funds appropriated for the general operation of the 21 department of education management , this may be done with the 22 approval of the legislative council. 23 Sec. 65. NEW SECTION . 283A.1A Transfer of authority and 24 duties. 25 1. Beginning July 1, 2018, the authority and duties of 26 the department of education, the state board of education, 27 and the director of the department of education under this 28 chapter, to the extent feasible, shall be transferred to the 29 boards of directors for the respective school districts in the 30 state. Accordingly, beginning July 1, 2018, all references to 31 the department of education, the state board of education, and 32 the director of the department of education under this chapter 33 and references to the department of education, the state board 34 of education, and the director of the department of education 35 -29- LSB 1270XS (3) 87 md/sc 29/ 49
S.F. 29 under other provisions of law relating to this chapter shall 1 mean the applicable board of directors of the school district. 2 2. Any rule, regulation, form, order, or directive 3 promulgated by the department of education, the state board 4 of education, or the director of the department of education 5 relative to the provisions of this chapter in existence at the 6 conclusion of the fiscal year beginning July 1, 2017, shall 7 continue in full force and effect. 8 Sec. 66. Section 283A.3, Code 2017, is amended to read as 9 follows: 10 283A.3 Expenditure of federal funds. 11 The director of the department of education management shall 12 accept and direct the disbursement of funds appropriated by any 13 Act of Congress and appropriated to the state of Iowa for use 14 in connection with school breakfast or lunch programs. The 15 director shall deposit the funds with the treasurer of the 16 state of Iowa, who shall make disbursements upon the direction 17 of the director. 18 Sec. 67. NEW SECTION . 284.1A Transfer of authority and 19 duties. 20 1. Beginning July 1, 2018, the authority and duties of 21 the department of education, the state board of education, 22 and the director of the department of education under this 23 chapter, to the extent feasible, shall be transferred to the 24 boards of directors for the respective school districts in the 25 state. Accordingly, beginning July 1, 2018, all references to 26 the department of education, the state board of education, and 27 the director of the department of education under this chapter 28 and references to the department of education, the state board 29 of education, and the director of the department of education 30 under other provisions of law relating to this chapter shall 31 mean the applicable board of directors of the school district. 32 2. Any rule, regulation, form, order, or directive 33 promulgated by the department of education, the state board 34 of education, or the director of the department of education 35 -30- LSB 1270XS (3) 87 md/sc 30/ 49
S.F. 29 relative to the provisions of this chapter in existence at the 1 conclusion of the fiscal year beginning July 1, 2017, shall 2 continue in full force and effect. 3 Sec. 68. NEW SECTION . 284A.1A Transfer of authority and 4 duties. 5 1. Beginning July 1, 2018, the authority and duties of 6 the department of education, the state board of education, 7 and the director of the department of education under this 8 chapter, to the extent feasible, shall be transferred to the 9 boards of directors for the respective school districts in the 10 state. Accordingly, beginning July 1, 2018, all references to 11 the department of education, the state board of education, and 12 the director of the department of education under this chapter 13 and references to the department of education, the state board 14 of education, and the director of the department of education 15 under other provisions of law relating to this chapter shall 16 mean the applicable board of directors of the school district. 17 2. Any rule, regulation, form, order, or directive 18 promulgated by the department of education, the state board 19 of education, or the director of the department of education 20 relative to the provisions of this chapter in existence at the 21 conclusion of the fiscal year beginning July 1, 2017, shall 22 continue in full force and effect. 23 Sec. 69. NEW SECTION . 285.7 Transfer of authority and 24 duties. 25 1. Beginning July 1, 2018, the authority and duties of 26 the department of education, the state board of education, 27 and the director of the department of education under this 28 chapter, to the extent feasible, shall be transferred to the 29 boards of directors for the respective school districts in the 30 state. Accordingly, beginning July 1, 2018, all references to 31 the department of education, the state board of education, and 32 the director of the department of education under this chapter 33 and references to the department of education, the state board 34 of education, and the director of the department of education 35 -31- LSB 1270XS (3) 87 md/sc 31/ 49
S.F. 29 under other provisions of law relating to this chapter shall 1 mean the applicable board of directors of the school district. 2 2. Any rule, regulation, form, order, or directive 3 promulgated by the department of education, the state board 4 of education, or the director of the department of education 5 relative to the provisions of this chapter in existence at the 6 conclusion of the fiscal year beginning July 1, 2017, shall 7 continue in full force and effect. 8 Sec. 70. Section 291.11, Code 2017, is amended to read as 9 follows: 10 291.11 Officers reported. 11 The secretary shall report to the director of the department 12 of education management , the county auditor, and county 13 treasurer the name and post office address of the president, 14 treasurer and secretary of the board as soon as practicable 15 after the qualification of each. 16 Sec. 71. NEW SECTION . 292.1A Transfer of authority and 17 duties. 18 1. Beginning July 1, 2018, the authority and duties of the 19 department of education under this chapter shall be transferred 20 to the department of revenue. Accordingly, beginning July 1, 21 2018, all references to the department of education under this 22 chapter and references to the department of education under 23 other provisions of law relating to this chapter shall mean the 24 department of revenue. 25 2. Any moneys remaining in any account or fund under the 26 control of the department of education at the conclusion of the 27 fiscal year beginning July 1, 2017, relative to the provisions 28 of this chapter shall be transferred to the control of the 29 department of revenue for such purposes. Notwithstanding 30 section 8.33, the moneys transferred in accordance with this 31 subsection shall not revert to the account or fund from which 32 appropriated or transferred. 33 3. Any contract entered into by the department of education 34 relating to the provisions of this chapter in effect at the 35 -32- LSB 1270XS (3) 87 md/sc 32/ 49
S.F. 29 conclusion of the fiscal year beginning July 1, 2017, shall 1 continue in full force and effect pending transfer of such 2 contracts to the department of revenue. 3 4. Any rule, regulation, form, order, or directive 4 promulgated by the department of education relative to the 5 provisions of this chapter in existence at the conclusion of 6 the fiscal year beginning July 1, 2017, shall continue in full 7 force and effect until amended, repealed, or supplemented by 8 affirmative action of the department of revenue under the 9 duties and powers established in this chapter and under the 10 procedure established in subsection 5. 11 5. In regard to updating references and format in the Iowa 12 administrative code in order to correspond to the transferring 13 of duties of this chapter, the administrative rules coordinator 14 and the administrative rules review committee, in consultation 15 with the administrative code editor, shall jointly develop a 16 schedule for the necessary updating of the Iowa administrative 17 code. 18 Sec. 72. Section 294.5, Code 2017, is amended to read as 19 follows: 20 294.5 Reports. 21 The teacher shall file with the school superintendent and 22 the director of the department of education such reports and in 23 such manner as may be required. 24 Sec. 73. Section 296.3, Code 2017, is amended to read as 25 follows: 26 296.3 Election called. 27 Within ten days of receipt of a petition filed under section 28 296.2 , the president of the board of directors shall call a 29 meeting of the board. The meeting shall be held within thirty 30 days after the petition was received. At the meeting, the 31 board shall call the election, fixing the time of the election, 32 which may be at the time and place of holding the regular 33 school election. However, if the board determines by unanimous 34 vote that the proposition or propositions requested by a 35 -33- LSB 1270XS (3) 87 md/sc 33/ 49
S.F. 29 petition to be submitted at an election are grossly unrealistic 1 or contrary to the needs of the school district, no election 2 shall be called. If more than one petition has been received 3 by the time the board meets to consider the petition triggering 4 the meeting, the board shall act upon the petitions in the 5 order they were received at the meeting called to consider the 6 initial petition. The decision of the board may be appealed to 7 the state board of education as provided in chapter 290 . The 8 president shall notify the county commissioner of elections of 9 the time of the election. 10 Sec. 74. NEW SECTION . 297.37 Transfer of authority and 11 duties. 12 1. Beginning July 1, 2018, the authority and duties of the 13 department of education and the director of the department 14 of education under this chapter shall be transferred to the 15 department of administrative services and the director of the 16 department of administrative services. Accordingly, beginning 17 July 1, 2018, all references to the department of education 18 and the director of the department of education under this 19 chapter and references to the department of education and the 20 director of the department of education under other provisions 21 of law relating to this chapter shall mean the department of 22 administrative services or the director of the department of 23 administrative services. 24 2. Any rule, regulation, form, order, or directive 25 promulgated by the department of education or the director 26 of the department of education relative to the provisions of 27 this chapter in existence at the conclusion of the fiscal 28 year beginning July 1, 2017, shall continue in full force and 29 effect. 30 Sec. 75. Section 298A.8, Code 2017, is amended to read as 31 follows: 32 298A.8 Student activity fund. 33 The student activity fund is a special revenue fund. A 34 student activity fund must be established in any school 35 -34- LSB 1270XS (3) 87 md/sc 34/ 49
S.F. 29 corporation receiving money from student-related activities 1 such as admissions, activity fees, student dues, student 2 fund-raising events, or other student-related cocurricular or 3 extracurricular activities. Moneys in this fund shall be used 4 to support only the cocurricular program defined in department 5 of education administrative rules . 6 Sec. 76. NEW SECTION . 299.25 Transfer of authority and 7 duties. 8 1. Beginning July 1, 2018, the authority and duties of 9 the department of education, the state board of education, 10 and the director of the department of education under this 11 chapter, to the extent feasible, shall be transferred to the 12 boards of directors for the respective school districts in the 13 state. Accordingly, beginning July 1, 2018, all references to 14 the department of education, the state board of education, and 15 the director of the department of education under this chapter 16 and references to the department of education, the state board 17 of education, and the director of the department of education 18 under other provisions of law relating to this chapter shall 19 mean the applicable board of directors of the school district. 20 2. Any rule, regulation, form, order, or directive 21 promulgated by the department of education, the state board 22 of education, or the director of the department of education 23 relative to the provisions of this chapter in existence at the 24 conclusion of the fiscal year beginning July 1, 2017, shall 25 continue in full force and effect. 26 Sec. 77. NEW SECTION . 299A.1A Transfer of authority and 27 duties. 28 1. Beginning July 1, 2018, the authority and duties of 29 the department of education, the state board of education, 30 and the director of the department of education under this 31 chapter, to the extent feasible, shall be transferred to the 32 boards of directors for the respective school districts in the 33 state. Accordingly, beginning July 1, 2018, all references to 34 the department of education, the state board of education, and 35 -35- LSB 1270XS (3) 87 md/sc 35/ 49
S.F. 29 the director of the department of education under this chapter 1 and references to the department of education, the state board 2 of education, and the director of the department of education 3 under other provisions of law relating to this chapter shall 4 mean the applicable board of directors of the school district. 5 2. Any rule, regulation, form, order, or directive 6 promulgated by the department of education, the state board 7 of education, or the director of the department of education 8 relative to the provisions of this chapter in existence at the 9 conclusion of the fiscal year beginning July 1, 2017, shall 10 continue in full force and effect. 11 Sec. 78. NEW SECTION . 301.1A Transfer of authority and 12 duties. 13 1. Beginning July 1, 2018, the authority and duties of 14 the department of education, the state board of education, 15 and the director of the department of education under this 16 chapter, to the extent feasible, shall be transferred to the 17 boards of directors for the respective school districts in the 18 state. Accordingly, beginning July 1, 2018, all references to 19 the department of education, the state board of education, and 20 the director of the department of education under this chapter 21 and references to the department of education, the state board 22 of education, and the director of the department of education 23 under other provisions of law relating to this chapter shall 24 mean the applicable board of directors of the school district. 25 2. Any rule, regulation, form, order, or directive 26 promulgated by the department of education, the state board 27 of education, or the director of the department of education 28 relative to the provisions of this chapter in existence at the 29 conclusion of the fiscal year beginning July 1, 2017, shall 30 continue in full force and effect. 31 Sec. 79. REPEAL. Sections 260C.6, 276.4, and 291.10, Code 32 2017, are repealed. 33 Sec. 80. REPEAL. Chapters 256, 256A, 256G, and 290, Code 34 2017, are repealed. 35 -36- LSB 1270XS (3) 87 md/sc 36/ 49
S.F. 29 Sec. 81. EFFECTIVE DATE. This division of this Act takes 1 effect July 1, 2018. 2 DIVISION II 3 CORRESPONDING AMENDMENTS LEGISLATION 4 Sec. 82. CORRESPONDING AMENDMENTS LEGISLATION. Additional 5 legislation is required to fully implement division I of this 6 Act. The director of the department of education shall, in 7 compliance with section 2.16, prepare draft legislation for 8 submission to the legislative services agency, as necessary, 9 to implement the transition and elimination of authority and 10 duties under division I of this Act and to implement the 11 transition and elimination of authority and duties under other 12 provisions of law including but not limited to the duties and 13 authority of the department of education, the state board of 14 education, the director of the department of education, and any 15 division, commission, or subunit of such entities or offices 16 under chapters 7A, 7E, 8A, 8B, 8D, 8F, 11, 12, 15, 15H, 16, 19B, 17 22, 48A, 68B, 73, 80E, 84A, 85, 96, 99B, 125, 135, 139A, 141A, 18 142A, 154B, 154F, 161A, 190A, 216A, 218, 225C, 232, 234, 237, 19 237A, 237C, 239B, 241, 249A, 257, 261B, 321, 321J, 322, 350, 20 423E, 423F, 455A, 455E, 473, 514I, 714, and 904. 21 DIVISION III 22 EDUCATION FINANCE AND 23 EDUCATION SAVINGS GRANTS 24 Sec. 83. Section 8.6, Code 2017, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 16. Education savings grant 27 applications. Adopt rules relating to applications for an 28 education savings grant pursuant to section 257.11B, including 29 application processing timelines, and required information for 30 submission by a parent or guardian. 31 Sec. 84. NEW SECTION . 257.1A Transfer of authority and 32 duties. 33 1. Beginning July 1, 2018, the authority and duties of 34 the department of education, the state board of education, 35 -37- LSB 1270XS (3) 87 md/sc 37/ 49
S.F. 29 and the director of the department of education under this 1 chapter shall be transferred to the department of management 2 and the director of the department of management. Accordingly, 3 beginning July 1, 2018, all references to the department of 4 education under this chapter and references to the department 5 of education under other provisions of law relating to this 6 chapter shall mean the department of management and all 7 references to the state board of education or the director 8 of the department of education under this chapter or other 9 provisions of law relating to this chapter shall mean the 10 director of the department of management. 11 2. Any moneys remaining in any account or fund under the 12 control of the department of education at the conclusion of the 13 fiscal year beginning July 1, 2017, relative to the provisions 14 of this chapter shall be transferred to the control of the 15 department of management for such purposes. Notwithstanding 16 section 8.33, the moneys transferred in accordance with this 17 subsection shall not revert to the account or fund from which 18 appropriated or transferred. 19 3. Any contract entered into by the department of education 20 relating to the provisions of this chapter in effect at the 21 conclusion of the fiscal year beginning July 1, 2017, shall 22 continue in full force and effect pending transfer of such 23 contracts to the department of management. 24 4. Any rule, regulation, form, order, or directive 25 promulgated by the department of education relative to the 26 provisions of this chapter in existence at the conclusion of 27 the fiscal year beginning July 1, 2017, shall continue in full 28 force and effect until amended, repealed, or supplemented by 29 affirmative action of the department of management under the 30 duties and powers established in this chapter and under the 31 procedure established in subsection 5. 32 5. In regard to updating references and format in the Iowa 33 administrative code in order to correspond to the transferring 34 of duties of this chapter, the administrative rules coordinator 35 -38- LSB 1270XS (3) 87 md/sc 38/ 49
S.F. 29 and the administrative rules review committee, in consultation 1 with the administrative code editor, shall jointly develop a 2 schedule for the necessary updating of the Iowa administrative 3 code. 4 Sec. 85. NEW SECTION . 257.11B Education savings grant 5 program. 6 1. Pupils eligible to enroll in grades kindergarten through 7 twelve or eligible to participate in a preschool program under 8 chapter 256C and attending a nonpublic school, receiving 9 competent private instruction under chapter 299A, or receiving 10 private preschool instruction shall be eligible to receive an 11 education savings grant in the manner provided in this section 12 for school years beginning on or after July 1, 2018. Education 13 savings grants shall be made available to parents and guardians 14 in the manner authorized under subsection 4, paragraph “c” , for 15 the payment of qualified educational expenses as provided in 16 this section. 17 2. a. (1) By January 31 preceding the school year for 18 which the education savings grant is requested, the parent 19 or guardian of the pupil requesting to receive an education 20 savings grant shall submit an application to the department of 21 management, on application forms developed by the department of 22 management, indicating that the parent or guardian intends to 23 enroll the pupil in a nonpublic school, place the pupil under 24 competent private instruction under chapter 299A, or provide 25 private preschool instruction. 26 (2) In addition to such information deemed appropriate by 27 the department of management, the application shall require 28 certification from the nonpublic school of the pupil’s 29 enrollment for the following school year or a statement 30 indicating the parent or guardian’s intent to place the pupil 31 under competent private instruction or private preschool 32 instruction for the following school year. 33 b. By March 1 preceding the school year for which the 34 education savings grant is requested, the department of 35 -39- LSB 1270XS (3) 87 md/sc 39/ 49
S.F. 29 management shall notify the parent or guardian of each pupil 1 who is approved to receive an education savings grant and the 2 amount of the grant. 3 c. Education savings grants shall only be approved for one 4 school year and applications must be submitted annually for 5 education savings grants in subsequent school years. 6 3. a. The department of management shall assign each 7 pupil an education savings grant in an amount equal to the 8 difference between eighty-seven and five-tenths percent of 9 the regular program state cost per pupil and the statewide 10 average foundation property tax per pupil for the same school 11 year. However, for a pupil that is eligible to participate 12 in a preschool program under chapter 256C, the amount of the 13 grant shall be an amount equal to fifty percent of the regular 14 program state cost per pupil for the same school year. 15 b. The department of management shall on July 1 following 16 the determination of the amount of the education savings grant 17 for each approved pupil transfer such amounts to the pupil’s 18 account in the education savings grant fund established under 19 subsection 4. Such amount shall be available to the pupil’s 20 parent or guardian in the manner authorized under subsection 21 4, paragraph “c” , for the payment of qualified educational 22 expenses incurred by such persons for the pupil during that 23 school year. 24 4. An education savings grant fund is created in the state 25 treasury under the control of the department of management 26 consisting of moneys appropriated to the department of 27 management for the purpose of providing education savings 28 grants under this section. For the fiscal year commencing July 29 1, 2018, and each succeeding fiscal year, there is appropriated 30 from the general fund of the state to the department of 31 management to be credited to the fund the amount necessary 32 to pay all education savings grants approved for that fiscal 33 year. The director of the department of management has all 34 powers necessary to carry out and effectuate the purposes, 35 -40- LSB 1270XS (3) 87 md/sc 40/ 49
S.F. 29 objectives, and provisions of this section pertaining to the 1 fund, including the power to do all of the following: 2 a. Make and enter into contracts necessary for the 3 administration of the fund. 4 b. Procure insurance against any loss in connection with the 5 assets of the fund or require a surety bond. 6 c. Contract with a private financial management firm to 7 manage the fund, in collaboration with the treasurer of state, 8 including providing for the disbursement of education savings 9 grants in the form of an electronic debit card or checks that 10 are payable directly from the pupil’s account within the fund. 11 d. Conduct audits or other review necessary to properly 12 administer the program. 13 e. Adopt rules pursuant to chapter 17A for the 14 administration of the fund and accounts within the fund. 15 5. a. For each pupil approved for an education savings 16 grant, the department of management shall establish an account 17 for that pupil in the education savings grant fund. The 18 amount of the pupil’s education savings grant determined under 19 subsection 3 shall be deposited into the pupil’s account on 20 July 1 and such amount shall be immediately available for the 21 payment of qualified educational expenses incurred by the 22 parent or guardian for the pupil during that fiscal year using 23 the payment method authorized under subsection 4, paragraph 24 “c” . 25 b. A nonpublic school or a provider of competent private 26 instruction that accepts payment from a parent or guardian 27 using funds from a pupil’s account in the education savings 28 grant fund shall not refund, rebate, or share any portion of 29 such payment with the parent, guardian, or pupil. 30 c. Moneys remaining in a pupil’s account upon conclusion 31 of the fiscal year shall remain in the pupil’s account in the 32 education savings grant fund for the payment of qualified 33 educational expenses in future fiscal years or for the payment 34 of higher education costs under subsection 8. 35 -41- LSB 1270XS (3) 87 md/sc 41/ 49
S.F. 29 6. For purposes of this section, “qualified educational 1 expenses” includes tuition and fees at a nonpublic school 2 or nonpublic preschool, textbooks, fees or payments for 3 tutoring or cognitive skills training, curriculum materials, 4 tuition or fees for nonpublic online education programs, 5 education materials and services for pupils with disabilities, 6 standardized test fees, fees required by the department not to 7 exceed for each grant recipient five percent of the total grant 8 amount in any fiscal year, and other expenses incurred by the 9 parent or guardian that are directly related to the education 10 of the pupil at a nonpublic preschool or a nonpublic school, 11 including a nonpublic school accredited by an independent 12 accrediting agency approved by the department of management, or 13 directly related to providing competent private instruction for 14 the pupil under chapter 299A or private preschool instruction. 15 The cost of one computer or other portable computing device 16 shall be allowed as a qualified educational expense for 17 a pupil if such a purchase has not been made using funds 18 from that pupil’s account in either of the two immediately 19 preceding fiscal years. “Qualified educational expenses” do not 20 include transportation costs for the pupil, the cost of food 21 or refreshments consumed by the pupil, the cost of clothing 22 for the pupil, or the cost of disposable materials including 23 but not limited to paper, notebooks, pencils, pens, and art 24 supplies. 25 7. A person who makes a false claim for the purpose 26 of obtaining an education savings grant provided for in 27 this section or who knowingly receives the grant or makes a 28 payment from an account within the education savings grant 29 fund without being legally entitled to do so is guilty of a 30 fraudulent practice under chapter 714. The false claim for an 31 education savings grant or a payment from an account shall be 32 disallowed. If amounts from the grant have been disbursed from 33 the applicable account in the education savings grant fund, the 34 department of management shall initiate legal proceedings to 35 -42- LSB 1270XS (3) 87 md/sc 42/ 49
S.F. 29 recover such amounts. A parent or guardian, or a pupil for 1 purposes of subsection 8, who commits a fraudulent practice 2 under this subsection is prohibited from participating in the 3 education savings grant program in the future. 4 8. For each pupil with a positive balance in the pupil’s 5 account in the education savings grant fund upon graduation 6 from high school or completion of an equivalent level of 7 competent private instruction under chapter 299A, the 8 department of management shall maintain such account in the 9 fund until the pupil is twenty-five years of age. Following 10 graduation from high school until the pupil is twenty-five 11 years of age, moneys in the pupil’s account may be used 12 for higher education costs, as defined in section 12D.1, 13 incurred by the pupil while attending an institution of higher 14 education under the control of the state board of regents, a 15 community college located in this state, or a private college 16 or university located in this state. Payments from a pupil’s 17 account for higher education costs shall be made in the same 18 manner as payments for qualified educational expenses under 19 subsection 5. Moneys in a pupil’s account when the pupil turns 20 twenty-five years of age shall be transferred by the department 21 of management for deposit in the general fund of the state. 22 9. This section shall not be construed to authorize the 23 state or any political subdivision of the state to exercise 24 authority over any nonpublic school or provider of competent 25 private instruction under chapter 299A or construed to require 26 a nonpublic school to modify its standards for admission or 27 educational program in order to receive payment from a parent 28 or guardian using funds from a pupil’s account in the education 29 savings grant fund. A nonpublic school or provider of 30 competent private instruction under chapter 299A that accepts 31 payment from a parent or guardian using funds from a pupil’s 32 account in the education savings grant fund is not an agent 33 of this state or of a political subdivision of this state. 34 Rules adopted by the department of management to implement this 35 -43- LSB 1270XS (3) 87 md/sc 43/ 49
S.F. 29 section that impose an undue burden on a nonpublic school or 1 provider of competent private instruction under chapter 299A 2 are invalid. 3 Sec. 86. Section 422.7, Code 2017, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 51. Subtract, to the extent included, the 6 amount of an education savings grant under section 257.11B 7 received by the taxpayer for payment of qualified educational 8 expenses. 9 Sec. 87. APPLICABILITY. Except as otherwise provided, this 10 division of this Act applies to school budget years and fiscal 11 years beginning on or after July 1, 2018. 12 Sec. 88. APPLICABILITY. The section of this division of 13 this Act enacting section 422.7, subsection 51, applies to tax 14 years beginning on or after January 1, 2018. 15 Sec. 89. EFFECTIVE DATE. The section of this division of 16 this Act enacting section 257.1A takes effect July 1, 2018. 17 DIVISION IV 18 CORRESPONDING AMENDMENTS LEGISLATION 19 Sec. 90. CORRESPONDING AMENDMENTS LEGISLATION. Additional 20 legislation is required to fully implement the section of 21 division III of this Act enacting section 257.1A. The director 22 of the department of education shall, in compliance with 23 section 2.16, prepare draft legislation for submission to the 24 legislative services agency, as necessary, to implement the 25 transition and elimination of authority and duties of the 26 department of education, the state board of education, and 27 director of the department of education under the section 28 of division III of this Act enacting section 257.1A and to 29 implement the transition and elimination of authority and 30 duties under other provisions of law. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to education and school district funding 35 -44- LSB 1270XS (3) 87 md/sc 44/ 49
S.F. 29 by modifying the duties and authority of certain state and 1 local governmental entities, establishing an education savings 2 grant program, and modifying the school district funding 3 formula. 4 Division I of the bill repeals Code chapter 256, which 5 establishes the department of education, establishes the office 6 of the director of the department of education, establishes 7 the state board of education, specifies certain educational 8 standards, establishes various education programs, establishes 9 certain councils and entities within the department of 10 education, includes provisions relating to the participation in 11 extracurricular activities, establishes the division of library 12 services, includes the library compact, and establishes the 13 public broadcasting division. 14 Division I of the bill also amends and repeals other chapters 15 of the Code relating to education to transition the duties and 16 authority of the department of education, the director of the 17 department of education, and the state board of education to 18 other specified local and state governmental entities beginning 19 July 1, 2018. 20 Division I of the bill takes effect July 1, 2018. 21 Division II of the bill provides that additional legislation 22 is required to fully implement division I of the bill and 23 requires the director of the department of education to 24 prepare draft legislation for submission to the legislative 25 services agency, as necessary, to implement the transition 26 and elimination of authority and duties under division I of 27 the bill and to implement the transition and elimination of 28 authority and duties under other provisions of law including 29 but not limited to the duties and authority of the department 30 of education, the state board of education, the director of 31 the department of education, and any division, commission, 32 or subunit of such entities or offices under specified Code 33 chapters. 34 Division III of the bill provides that beginning July 35 -45- LSB 1270XS (3) 87 md/sc 45/ 49
S.F. 29 1, 2018, the authority and duties of the department of 1 education, the state board of education, and the director 2 of the department of education under Code chapter 257 are 3 transferred to the department of management and the director 4 of the department of management. The bill also provides that 5 moneys remaining in any account or fund under the control of 6 the department of education at the conclusion of the fiscal 7 year beginning July 1, 2017, relative to the provisions of Code 8 chapter 257 are transferred to the control of the department 9 of management for such purposes. The bill provides that 10 any contract entered into by the department of education 11 relating to the provisions of Code chapter 257 in effect at 12 the conclusion of the fiscal year beginning July 1, 2017, 13 shall continue in full force and effect pending transfer of 14 such contracts to the department of management. The bill also 15 provides for the continuation of any rule, regulation, form, 16 order, or directive promulgated by the department of education 17 until amended, repealed, or supplemented by affirmative action 18 of the department of management. 19 Division III of the bill provides education savings grants 20 for pupils attending a nonpublic school, receiving competent 21 private instruction, or receiving private preschool instruction 22 and establishes an education savings grant fund. 23 Under division III of the bill, pupils eligible to enroll 24 in grades kindergarten through 12 or eligible to participate 25 in a preschool program under Code chapter 256C and attending a 26 nonpublic school, receiving competent private instruction under 27 Code chapter 299A, or receiving private preschool instruction 28 are eligible to receive an education savings grant for school 29 years beginning on or after July 1, 2018. By January 31 30 preceding the school year for which the education savings grant 31 is requested, the parent or guardian of the pupil requesting to 32 receive an education savings grant must submit an application 33 to the department of management. 34 Division III of the bill requires that by March 1 preceding 35 -46- LSB 1270XS (3) 87 md/sc 46/ 49
S.F. 29 the school year for which the education savings grant is 1 requested, the department of management must notify the parent 2 or guardian of each pupil designated to receive an education 3 savings grant and the amount of the education savings grant. 4 Education savings grants may only be approved for one school 5 year and annual applications must be submitted for education 6 savings grants in subsequent school years. 7 The amount of each education savings grant is equal to the 8 statewide average regular program state foundation aid per 9 pupil in the same school year or in the case of a preschool 10 eligible pupil an amount equal to 50 percent of the regular 11 program state cost per pupil. 12 Division III of the bill creates an education savings 13 grant fund in the state treasury under the control of the 14 department of management consisting of moneys appropriated to 15 the department for the purpose of providing education savings 16 grants. For the fiscal year commencing July 1, 2018, and each 17 succeeding fiscal year, there is appropriated from the general 18 fund of the state to the department of management for deposit 19 in the fund the amount necessary to pay all education savings 20 grants approved for that fiscal year. For each pupil approved 21 for an education savings grant, the department of management 22 must establish an account for that pupil in the education 23 savings grant fund. The amount of the pupil’s education 24 savings grant is deposited into the pupil’s account on July 1 25 and such amount is available for use by parents and guardians 26 for the payment of qualified educational expenses, as defined 27 in the bill, incurred by the parent or guardian for the pupil 28 during that fiscal year. 29 Division III of the bill authorizes the department of 30 management to contract with a private financial management firm 31 to manage the education savings grant fund, in collaboration 32 with the treasurer of state, including providing for the 33 disbursement of education savings grants in the form of an 34 electronic debit card or checks that are payable directly from 35 -47- LSB 1270XS (3) 87 md/sc 47/ 49
S.F. 29 the pupil’s account within the fund. 1 Division III of the bill provides that moneys remaining in a 2 pupil’s account upon the conclusion of the fiscal year shall 3 remain in the pupil’s account within the education savings 4 grant fund for the payment of qualified educational expenses in 5 future fiscal years or for higher education costs as authorized 6 in the bill. 7 Under the division, for each pupil with a positive balance in 8 the pupil’s account in the education savings grant fund upon 9 graduation from high school or completion of an equivalent 10 level of competent private instruction under Code chapter 11 299A, the department of management is required to maintain the 12 account in the fund until the pupil is 25 years old. Until 13 the pupil is 25 years old, moneys in the pupil’s account may 14 be used by the pupil for higher education costs, as defined 15 in Code section 12D.1. Moneys in a pupil’s account when the 16 pupil turns 25 years old are transferred by the department of 17 management for deposit in the general fund of the state. 18 Division III of the bill provides that a person who makes a 19 false claim for the purpose of obtaining an education savings 20 grant or who knowingly receives the grant or makes a payment 21 from an account within the education savings grant fund without 22 being legally entitled to do so is guilty of a fraudulent 23 practice and is subject to a criminal penalty. The bill allows 24 the department of management to initiate legal proceedings to 25 recover grants and amounts improperly awarded or paid from 26 accounts under the bill. 27 Division III of the bill provides that an education savings 28 grant received by a taxpayer is not taxable income for purposes 29 of state individual income taxation. This provision of the 30 bill applies to tax years beginning on or after January 1, 31 2018. 32 The section of division III of the bill enacting Code section 33 257.1A takes effect July 1, 2018. Division III of the bill 34 applies to school budget years and fiscal years beginning on 35 -48- LSB 1270XS (3) 87 md/sc 48/ 49
S.F. 29 or after July 1, 2018. 1 Division IV of the bill provides that additional legislation 2 is required to fully implement division III of the bill 3 and requires the director of the department of education to 4 prepare draft legislation for submission to the legislative 5 services agency, as necessary, to implement the transition 6 and elimination of authority and duties of the department of 7 education pursuant to new Code section 257.1A and to implement 8 the transition and elimination of authority and duties under 9 other provisions of law. 10 -49- LSB 1270XS (3) 87 md/sc 49/ 49