SF 28 (LSB 1640XS (5) 88)

SENATE FILE 28

BY  ZAUN

A BILL FOR

An Act relating to education by modifying the duties and authority of certain state and local governmental entities, establishing an education savings grant program and fund, making appropriations, providing penalties, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
REPEAL OF DEPARTMENT OF EDUCATION AND

STATE BOARD OF EDUCATION 

    Section 1.  NEW SECTION.  256B.16  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the division of special education created under section 256B.1, the state board of education, and the director of the department of education under this chapter shall to the extent feasible be transferred to the appropriate area education agency where such special education services are being provided. Accordingly, beginning July 1, 2020, all references to the department of education or the division of special education under this chapter and references to the department of education or the division of special education under other provisions of law relating to this chapter shall mean the applicable area education agency and all references to the state board of education or the director of the department of education under this chapter or other provisions of law relating to this chapter shall mean the board of directors of the area education agency and the administrator of the area education agency respectively.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the department of human services for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the area education agencies.
   4.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
   5.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 2.  Section 256C.1, Code 2019, is amended to read as follows:
   256C.1  Definitions.
   As used in this chapter:
   1.  “Approved local program” means a school district’s program for four-year-old children approved by the department of education to provide high quality preschool instruction.
   2.  “Department” means the department of education.
   3.  “Director” means the director of the department of education.
   4.  2.  “Preschool program” means the statewide preschool program for four-year-old children created in accordance with this chapter.
   5.  3.  “School district approved to participate in the preschool program” means a school district that meets the school district requirements under section 256C.3 and has been approved by the department to participate in the preschool program.
   6.  “State board” means the state board of education.
    Sec. 3.  Section 256C.2, subsection 2, Code 2019, is amended by striking the subsection.
    Sec. 4.  Section 256C.3, subsection 2, paragraph a, subparagraph (3), Code 2019, is amended to read as follows:
   (3)  The individual possesses a bachelor’s or graduate degree from an accredited college or university with a major in early childhood education or other appropriate major identified in rule by the department as determined by the school district’s board of directors.
    Sec. 5.  Section 256C.3, subsection 3, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   The state board shall adopt rules to further define the following preschool program requirements which shall be used to determine whether or not a Each local program implemented by a school district approved to implement the preschool program qualifies as an approved local program shall address or conform with all of the following:
    Sec. 6.  Section 256C.3, subsection 3, paragraph e, Code 2019, is amended to read as follows:
   e.  Collaboration with participating families, early care providers, and community partners including but not limited to early childhood Iowa area boards, head start programs, shared visions and other programs provided under the auspices of the child development coordinating council, licensed child care centers, registered child development homes, area education agencies, child care resource and referral services provided under section 237A.26, early childhood special education programs, services funded by Tit. I of the federal Elementary and Secondary Education Act of 1965, and family support programs.
    Sec. 7.  Section 256C.3, subsection 4, Code 2019, is amended by striking the subsection and inserting in lieu thereof the following:
   4.  School district requirements.
   a.  Subject to implementation of chapter 28E agreements between a school district and community-based providers of services to four-year-old children, a four-year-old child who is enrolled in a child care center or child development home licensed or registered under chapter 237A, or in an existing public or private preschool program, shall be eligible for services provided by the school district’s local preschool program.
   b.  Professional development for school district preschool teachers shall be addressed in the school district’s professional development plan implemented in accordance with section 284.6.
    Sec. 8.  Section 256C.3, subsection 5, Code 2019, is amended by striking the subsection.
    Sec. 9.  Section 256C.4, subsection 1, paragraph d, Code 2019, is amended to read as follows:
   d.  Preschool foundation aid funding shall not be commingled with the other state aid payments made under section 257.16 to a school district and shall be accounted for by the local school district separately from the other state aid payments. Preschool foundation aid payments made to school districts are miscellaneous income for purposes of chapter 257. A school district shall maintain a separate listing within its budget for preschool foundation aid payments received and expenditures made. A school district shall certify to the department of education that preschool Preschool foundation aid funding received by the school district was shall be used to supplement, not supplant, moneys otherwise received and used by the school district for preschool programming.
    Sec. 10.  Section 256C.4, subsection 2, paragraph b, Code 2019, is amended to read as follows:
   b.  The enrollment count of eligible students shall not include a child who is included in the enrollment count determined under section 257.6 or a child who is served by a program already receiving state or federal funds for the purpose of the provision of four-year-old preschool programming while the child is being served by the program. Such preschool programming includes but is not limited to child development assistance programs provided under chapter 256A, special education programs provided under section 256B.9, school ready children grant programs and other programs provided under chapter 256I, and federal head start programs and the services funded by Tit. I of the federal Elementary and Secondary Education Act of 1965.
    Sec. 11.  Section 256C.5, subsection 2, Code 2019, is amended to read as follows:
   2.  Preschool foundation aid district amount.
   a.  For the initial school year for which a school district approved to participate in the preschool program receives that approval and implements the preschool program, the funding for the preschool foundation aid payable to that school district shall be paid from the appropriation made for that school year in section 256C.6, Code 2011, or in another appropriation made for purposes of this chapter. For that school year, the preschool foundation aid payable to the school district is the product of the regular program state cost per pupil for the school year multiplied by sixty percent of the school district’s eligible student enrollment on the date in the school year determined by rule.
   b.  For budget years subsequent to the initial school year for which a school district approved to participate in the preschool program receives that initial approval and implements the preschool program, the funding for the preschool foundation aid payable to that school district shall be paid from the appropriation made in section 257.16. Continuation of a school district’s participation in the preschool program for a second or subsequent budget year is subject to the approval of the department based upon the school district’s compliance with accountability provisions and the department’s on-site review of the school district’s implementation of the preschool program.
    Sec. 12.  Section 256C.5, subsection 4, Code 2019, is amended by striking the subsection.
    Sec. 13.  NEW SECTION.  256F.12  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the board of directors of the community college serving the merged area in which the charter school or innovation zone school, or such proposed school, is located. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter or other provisions of law relating to this chapter shall mean the board of directors of the community college serving the merged area in which the charter school or innovation zone school, or such proposed school, is located.
   2.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the appropriate community college board of directors.
   3.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 14.  NEW SECTION.  256H.4  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education and the director of the department of education under this chapter shall be transferred to the adjutant general of the state. Accordingly, beginning July 1, 2020, all references to the department of education and the director of the department of education under this chapter or other provisions of law relating to this chapter shall mean adjutant general of the state.
   2.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the adjutant general of the state.
   3.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence upon conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 15.  NEW SECTION.  256I.14  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education and the director of the department of education under this chapter shall be transferred to the department of management and the director of the department of management. Accordingly, beginning July 1, 2020, all references to the department of education or the director of the department of education under this chapter or under other provisions of law relating to this chapter shall mean the department of management and the director of the department of management.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the department of management for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the department of management.
   4.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the department of management under the duties and powers established in this chapter and under the procedure established in subsection 5.
   5.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 16.  Section 257C.5, subsection 1, Code 2019, is amended to read as follows:
   1.  The powers of the authority are vested in and exercised by a board consisting of five members, including the treasurer of state, the director of the department of education, and the director of the department of management, and two three members appointed by the governor, subject to confirmation by the senate. The state officials may designate representatives to serve on the board for them. As far as possible, the governor shall appoint members who are knowledgeable or experienced in the school systems of this state or in finance.
    Sec. 17.  NEW SECTION.  258.18  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall be transferred to the department of workforce development and the director of the department of workforce development. Accordingly, beginning July 1, 2020, all references to the department of education under this chapter and references to the department of education under other provisions of law relating to this chapter shall mean the department of workforce development and all references to the state board of education or the director of the department of education under this chapter or other provisions of law relating to this chapter shall mean the director of the department of workforce development.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the department of workforce development for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the department of workforce development.
   4.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the department of workforce development under the duties and powers established in this chapter and under the procedure established in subsection 5.
   5.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 18.  NEW SECTION.  259.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall be transferred to the department of workforce development and the director of the department of workforce development. Accordingly, beginning July 1, 2020, all references to the department of education under this chapter and references to the department of education under other provisions of law relating to this chapter shall mean the department of workforce development and all references to the state board of education or the director of the department of education under this chapter or other provisions of law relating to this chapter shall mean the director of the department of workforce development.
   2.  Beginning July 1, 2020, the division of vocational rehabilitation services created within the department of education under section 259.3 shall be transferred to the department of workforce development.
   3.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the department of workforce development for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   4.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the department of workforce development.
   5.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the department of workforce development under the duties and powers established in this chapter and under the procedure established in subsection 6.
   6.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 19.  NEW SECTION.  260C.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall, to the extent feasible, be transferred to the boards of directors of the community colleges serving the merged areas of the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of a community college.
   2.  Beginning July 1, 2020, transfer of the duties and authority of the department shall also include all duties and authority of the community colleges division created within the department of education under section 260C.6.
   3.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the applicable board of directors of a community college for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   4.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the boards of directors of the community colleges.
   5.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 20.  Section 260E.7, subsection 1, Code 2019, is amended to read as follows:
   1.  The economic development authority, in consultation with the department of education, the department of revenue, and the department of workforce development, shall coordinate and review the new jobs training program. The economic development authority shall adopt, amend, and repeal rules under chapter 17A that the community college will use in developing projects with new and expanding industrial new jobs training proposals and that the economic development authority shall use to review and report on the new jobs training program as required in this section.
    Sec. 21.  Section 260F.3, subsection 5, Code 2019, is amended to read as follows:
   5.  Other criteria established by the department authority.
    Sec. 22.  Section 260F.6B, Code 2019, is amended to read as follows:
   260F.6B  High technology apprenticeship program.
   The community colleges and the authority are authorized to fund high technology apprenticeship programs which comply with the requirements specified in section 260C.44 and which may include both new and statewide apprenticeship programs. Notwithstanding the provisions of section 260F.6, subsection 2, relating to maximum award amounts, moneys allocated to the community colleges with high technology apprenticeship programs shall be distributed to the community colleges based upon contact hours under the programs administered during the prior fiscal year as determined by the department of education authority. The authority shall adopt rules governing this section’s operation and participant eligibility.
    Sec. 23.  Section 260F.7, Code 2019, is amended to read as follows:
   260F.7  Authority to coordinate.
   The authority, in consultation with the department of education and the department of workforce development, shall coordinate the jobs training program. A project shall not be funded under this chapter unless the authority approves the project. The authority shall adopt rules pursuant to chapter 17A governing the program’s operation and eligibility for participation in the program. The authority shall establish by rule criteria for determining what constitutes an eligible business.
    Sec. 24.  Section 260H.2, subsection 1, Code 2019, is amended to read as follows:
   1.  A pathways for academic career and employment program is established to provide funding to community colleges for the development of projects in coordination with the economic development authority, the department of education, the department of workforce development, local workforce development boards established pursuant to section 84A.4, and community partners to implement a simplified, streamlined, and comprehensive process, along with customized support services, to enable eligible participants to acquire effective academic and employment training to secure gainful, quality, in-state employment.
    Sec. 25.  Section 260H.2, subsection 2, paragraph a, Code 2019, is amended to read as follows:
   a.  A pathways for academic career and employment fund is created for the community colleges in the state treasury to be administered by the department of education economic development authority. The moneys in the pathways for academic career and employment fund are appropriated to the department of education economic development authority for the pathways for academic career and employment program.
    Sec. 26.  Section 260H.8, Code 2019, is amended to read as follows:
   260H.8  Rules.
   The department of education authority, in consultation with the community colleges, the economic development authority, and the department of workforce development, shall adopt rules pursuant to chapter 17A and this chapter to implement the provisions of this chapter. Local workforce development boards established pursuant to section 84A.4 shall be consulted in the development and implementation of rules to be adopted pursuant to this chapter.
    Sec. 27.  Section 260I.2, subsection 2, paragraph a, Code 2019, is amended to read as follows:
   a.  There is established for the community colleges a gap tuition assistance fund in the state treasury to be administered by the department of education economic development authority. The funds in the gap tuition assistance fund are appropriated to the department of education economic development authority for the gap tuition assistance program.
    Sec. 28.  Section 260I.3, subsection 1, Code 2019, is amended to read as follows:
   1.  The department of education, in consultation with the economic development authority, shall adopt rules pursuant to this chapter defining eligibility criteria for persons applying to receive tuition assistance under this chapter.
    Sec. 29.  Section 260I.10, Code 2019, is amended to read as follows:
   260I.10  Oversight.
   1.  The department of education economic development authority, in coordination with the community colleges, shall establish a steering committee. The steering committee shall determine if the performance measures of the gap tuition assistance program are being met and shall take necessary steps to correct any deficiencies. The steering committee shall meet at least quarterly to evaluate and monitor the performance of the gap tuition assistance program.
   2.  The department of education economic development authority, in coordination with the community colleges, shall develop a common intake tracking system that shall be implemented consistently by each participating community college.
   3.  The department of education economic development authority shall coordinate statewide oversight, evaluation, and reporting efforts for the gap tuition assistance program.
    Sec. 30.  Section 260I.11, Code 2019, is amended to read as follows:
   260I.11  Rules.
   The department of education economic development authority, in consultation with the economic development authority and the community colleges, shall adopt rules pursuant to chapter 17A and this chapter to implement the provisions of this chapter.
    Sec. 31.  Section 261.1, subsection 2, paragraph b, Code 2019, is amended by striking the paragraph.
    Sec. 32.  NEW SECTION.  261.8  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall be transferred to the college student aid commission. Accordingly, beginning July 1, 2020, all references to the department of education or the director of the department of education under this chapter and references to the department of education or the director of the department of education under other provisions of law relating to this chapter shall mean the college student aid commission.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the college student aid commission for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the college student aid commission.
   4.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the college student aid commission under the duties and powers established in this chapter and under the procedure established in subsection 5.
   5.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 33.  NEW SECTION.  261E.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall be transferred to the state board of regents. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, or the director of the department of education under this chapter and references to the department of education, state board of education, or director of the department of education under other provisions of law relating to this chapter shall mean the state board of regents.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the state board of regents for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the state board of regents.
   4.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the state board of regents under the duties and powers established in this chapter and under the procedure established in subsection 5.
   5.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 34.  Section 262.9, subsection 27, Code 2019, is amended to read as follows:
   27.  Explore, in conjunction with the department of education, the need for coordination between school districts, area education agencies, state board of regents institutions, and community colleges for purposes of delivery of courses, use of telecommunications, transportation, and other similar issues. Coordination may include but is not limited to coordination of calendars, programs, schedules, or telecommunications emissions. The state board shall develop recommendations as necessary, which shall be submitted in a report to the general assembly on a timely basis.
    Sec. 35.  Section 262.9, subsection 33, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   In consultation with the state board of education, establish Establish and enter into a collective statewide articulation agreement with the community colleges established pursuant to chapter 260C, which shall provide for the seamless transfer of academic credits from a completed associate of arts or associate of science degree program offered by a community college to a baccalaureate degree program offered by an institution of higher education governed by the board. The board shall also do the following:
    Sec. 36.  Section 262.9, subsection 33, paragraph i, Code 2019, is amended to read as follows:
   i.  Prepare, jointly with the department of education and the liaison advisory committee on transfer students, and submit by January 15 annually to the general assembly, an update on the articulation efforts and activities implemented by the community colleges and the institutions of higher education governed by the board.
    Sec. 37.  Section 262.71, subsection 9, Code 2019, is amended by striking the subsection.
    Sec. 38.  Section 272.1, subsection 4, Code 2019, is amended by striking the subsection.
    Sec. 39.  NEW SECTION.  272.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall be transferred to the board of educational examiners. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, or the director of the department of education under this chapter and references to the department of education, state board of education, or director of the department of education under other provisions of law relating to this chapter shall mean the board of educational examiners.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the board of educational examiners for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the board of educational examiners.
    Sec. 40.  Section 272.3, subsection 1, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   The board of educational examiners consists of twelve members. Two must be members of the general public, one must be the director of the department of education or the director’s designee, and the remaining nine ten members must be licensed practitioners. One of the public members shall have served on a school board. The public members shall never have held a practitioner’s license, but shall have a demonstrated interest in education. The nine ten practitioners shall be selected from the following areas and specialties of the teaching profession:
    Sec. 41.  Section 272.3, subsection 2, Code 2019, is amended to read as follows:
   2.  A majority of the licensed practitioner members shall be nonadministrative practitioners. Four of the members shall be administrators. Membership of the board shall comply with the requirements of sections 69.16 and 69.16A. A quorum of the board shall consist of six members. Members shall elect a chairperson of the board. Members, except for the director of the department of education or the director’s designee, shall be appointed by the governor subject to confirmation by the senate.
    Sec. 42.  Section 272.4, subsection 1, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   Members, except for the director of the department of education or the director’s designee, shall be appointed to serve staggered terms of four years. A member shall not serve more than two consecutive terms, except for the director of the department of education or the director’s designee, who shall serve until the director’s term of office expires. A member of the board, except for the two public members and the director of the department of education or the director’s designee, shall hold a valid practitioner’s license during the member’s term of office. A vacancy exists when any of the following occur:
    Sec. 43.  NEW SECTION.  273.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall, to the extent feasible, be transferred to the area education agency boards of directors in this state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable area education agency board of directors.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 44.  Section 273.2, subsection 5, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   The area education agency board may provide for the following programs and services to local school districts, and at the request of local school districts to providers of child development services who have received grants under chapter 256A from the child development coordinating council, within the limits of funds available:
    Sec. 45.  NEW SECTION.  274.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education and the director of the department of education under this chapter shall, to the extent feasible, be transferred to the area education agency boards of directors in this state. Accordingly, beginning July 1, 2020, all references to the department of education and the director of the department of education under this chapter and references to the department of education and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable area education agency board of directors.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 46.  NEW SECTION.  275.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall, to the extent feasible, be transferred to the area education agency boards of directors in this state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable area education agency board of directors.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 47.  Section 276.3, subsections 5 and 9, Code 2019, are amended by striking the subsections.
    Sec. 48.  Section 279.51, subsection 1, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   There is appropriated from the general fund of the state to the department of education management for the fiscal year beginning July 1, 2007, and each succeeding fiscal year, the sum of twelve million six hundred six thousand one hundred ninety-six dollars. The moneys shall be allocated as follows:
    Sec. 49.  Section 279.51, subsection 1, paragraphs b and d, Code 2019, are amended by striking the paragraphs.
    Sec. 50.  Section 279.51, subsection 2, Code 2019, is amended by striking the subsection.
    Sec. 51.  NEW SECTION.  279.72  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 52.  NEW SECTION.  280.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 53.  NEW SECTION.  282.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 54.  Section 282.18, subsections 5 and 14, Code 2019, are amended to read as follows:
   5.  Open enrollment applications filed after March 1 of the preceding school year that do not qualify for good cause as provided in subsection 4 shall be subject to the approval of the board of the resident district and the board of the receiving district. The parent or guardian shall send notification to the district of residence and the receiving district that the parent or guardian seeks to enroll the parent’s or guardian’s child in the receiving district. A decision of either board to deny an application filed under this subsection involving repeated acts of harassment of the student or serious health condition of the student that the resident district cannot adequately address is subject to appeal under section 290.1. The state board shall exercise broad discretion to achieve just and equitable results that are in the best interest of the affected child or children.
   14.  If a request under this section is for transfer to a laboratory school, as described in chapter 265, the student, who is the subject of the request, shall not be included in the basic enrollment of the student’s district of residence, and the laboratory school shall report the enrollment of the student directly to the department of education management, unless the number of students from the district attending the laboratory school during the current school year, as a result of open enrollment under this section, exceeds the number of students enrolled in the laboratory school from that district during the 1989-1990 school year. If the number of students enrolled in the laboratory school from a district during the current year exceeds the number of students enrolled from that district during the 1989-1990 school year, those students who represent the difference between the current and the 1988-1989 school year enrollment figures shall be included in the basic enrollment of the students’ districts of residence and the districts shall retain any moneys received as a result of the inclusion of the student in the district enrollment. The total number of students enrolled at a laboratory school during a school year shall not exceed six hundred seventy students. The regents institution operating the laboratory school and the board of directors of the school district in the community in which the regents institution is located shall develop a student transfer policy designed to protect and promote the quality and integrity of the teacher education program at the laboratory school, the viability of the education program of the local school district in which the regents institution is located, and to indicate the order in which and reasons why requests to transfer to a laboratory school shall be considered. A laboratory school may deny a request for transfer under the policy. A denial of a request to transfer under this subsection is not subject to appeal under section 290.1.
    Sec. 55.  Section 282.18, subsection 16, Code 2019, is amended by striking the subsection.
    Sec. 56.  Section 283.1, Code 2019, is amended to read as follows:
   283.1  Federal funds accepted.
   The director of the department of education management is the “state educational authority” for the purpose of accepting and administering funds appropriated by Congress for educational purposes and the funds shall be deposited with the treasurer of state and disbursed through the department of administrative services on vouchers audited as provided by law. When state matching funds are required as a condition to the acceptance of federal funds, the director of the department of education management may make expenditures for matching only from funds provided by the legislature for that purpose. However, when federal funds may be matched with expenditures from funds appropriated for the general operation of the department of education management, this may be done with the approval of the legislative council.
    Sec. 57.  NEW SECTION.  283A.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 58.  Section 283A.3, Code 2019, is amended to read as follows:
   283A.3  Expenditure of federal funds.
   The director of the department of education management shall accept and direct the disbursement of funds appropriated by any Act of Congress and appropriated to the state of Iowa for use in connection with school breakfast or lunch programs. The director shall deposit the funds with the treasurer of the state of Iowa, who shall make disbursements upon the direction of the director.
    Sec. 59.  NEW SECTION.  284.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 60.  NEW SECTION.  284A.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 61.  NEW SECTION.  285.7  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 62.  Section 291.11, Code 2019, is amended to read as follows:
   291.11  Officers reported.
   The secretary shall report to the director of the department of education management, the county auditor, and county treasurer the name and post office address of the president, treasurer and secretary of the board as soon as practicable after the qualification of each.
    Sec. 63.  NEW SECTION.  292.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education under this chapter shall be transferred to the department of revenue. Accordingly, beginning July 1, 2020, all references to the department of education under this chapter and references to the department of education under other provisions of law relating to this chapter shall mean the department of revenue.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the department of revenue for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the department of revenue.
   4.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the department of revenue under the duties and powers established in this chapter and under the procedure established in subsection 5.
   5.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 64.  Section 294.5, Code 2019, is amended to read as follows:
   294.5  Reports.
   The teacher shall file with the school superintendent and the director of the department of education such reports and in such manner as may be required.
    Sec. 65.  Section 296.3, Code 2019, is amended to read as follows:
   296.3  Election called.
   Within ten days of receipt of a petition filed under section 296.2, the president of the board of directors shall call a meeting of the board. The meeting shall be held within thirty days after the petition was received. At the meeting, the board shall call the election, fixing the time of the election, which may be at the time and place of holding the regular school election. However, if the board determines by unanimous vote that the proposition or propositions requested by a petition to be submitted at an election are grossly unrealistic or contrary to the needs of the school district, no election shall be called. If more than one petition has been received by the time the board meets to consider the petition triggering the meeting, the board shall act upon the petitions in the order they were received at the meeting called to consider the initial petition. The decision of the board may be appealed to the state board of education as provided in chapter 290. The president shall notify the county commissioner of elections of the time of the election.
    Sec. 66.  NEW SECTION.  297.37  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education and the director of the department of education under this chapter shall be transferred to the department of administrative services and the director of the department of administrative services. Accordingly, beginning July 1, 2020, all references to the department of education and the director of the department of education under this chapter and references to the department of education and the director of the department of education under other provisions of law relating to this chapter shall mean the department of administrative services or the director of the department of administrative services.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 67.  NEW SECTION.  299.25  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 68.  NEW SECTION.  299A.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 69.  NEW SECTION.  301.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter, to the extent feasible, shall be transferred to the boards of directors for the respective school districts in the state. Accordingly, beginning July 1, 2020, all references to the department of education, the state board of education, and the director of the department of education under this chapter and references to the department of education, the state board of education, and the director of the department of education under other provisions of law relating to this chapter shall mean the applicable board of directors of the school district.
   2.  Any rule, regulation, form, order, or directive promulgated by the department of education, the state board of education, or the director of the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect.
    Sec. 70.  REPEAL.  Sections 260C.6, 276.4, and 291.10, Code 2019, are repealed.
    Sec. 71.  REPEAL.  Chapters 256, 256A, 256G, and 290, Code 2019, are repealed.
    Sec. 72.  EFFECTIVE DATE.  This division of this Act takes effect July 1, 2020.
DIVISION II
CORRESPONDING AMENDMENTS LEGISLATION

    Sec. 73.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional legislation is required to fully implement division I of this Act. The director of the department of education shall, in compliance with section 2.16, prepare draft legislation for submission to the legislative services agency, as necessary, to implement the transition and elimination of authority and duties under division I of this Act and to implement the transition and elimination of authority and duties under other provisions of law including but not limited to the duties and authority of the department of education, the state board of education, the director of the department of education, and any division, commission, or subunit of such entities or offices under chapters 7A, 7E, 8A, 8B, 8D, 8F, 11, 12, 15, 15H, 16, 19B, 22, 48A, 68B, 73, 80E, 84A, 85, 96, 99B, 125, 135, 139A, 141A, 142A, 154B, 154F, 161A, 190A, 216A, 218, 225C, 232, 234, 237, 237A, 237C, 239B, 241, 249A, 257, 259A, 261B, 298A, 321, 321J, 322, 350, 423E, 423F, 455A, 455E, 473, 514I, 714, and 904.
DIVISION III
EDUCATION FINANCE AND

EDUCATION SAVINGS GRANTS 

    Sec. 74.  Section 8.6, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  16.  Education savings grant applications.  Adopt rules relating to applications for an education savings grant pursuant to section 257.11B, including application processing timelines, and required information for submission by a parent or guardian.
    Sec. 75.  NEW SECTION.  257.1A  Transfer of authority and duties.
   1.  Beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under this chapter shall be transferred to the department of management and the director of the department of management. Accordingly, beginning July 1, 2020, all references to the department of education under this chapter and references to the department of education under other provisions of law relating to this chapter shall mean the department of management and all references to the state board of education or the director of the department of education under this chapter or other provisions of law relating to this chapter shall mean the director of the department of management.
   2.  Any moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of this chapter shall be transferred to the control of the department of management for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   3.  Any contract entered into by the department of education relating to the provisions of this chapter in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the department of management.
   4.  Any rule, regulation, form, order, or directive promulgated by the department of education relative to the provisions of this chapter in existence at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect until amended, repealed, or supplemented by affirmative action of the department of management under the duties and powers established in this chapter and under the procedure established in subsection 5.
   5.  In regard to updating references and format in the Iowa administrative code in order to correspond to the transferring of duties of this chapter, the administrative rules coordinator and the administrative rules review committee, in consultation with the administrative code editor, shall jointly develop a schedule for the necessary updating of the Iowa administrative code.
    Sec. 76.  NEW SECTION.  257.11B  Education savings grant program.
   1.  Pupils eligible to enroll in grades kindergarten through twelve or eligible to participate in a preschool program under chapter 256C and attending a nonpublic school, receiving competent private instruction under chapter 299A, or receiving private preschool instruction shall be eligible to receive an education savings grant in the manner provided in this section for school years beginning on or after July 1, 2020. Education savings grants shall be made available to parents and guardians in the manner authorized under subsection 4, paragraph “c”, for the payment of qualified educational expenses as provided in this section.
   2.  a.  (1)  By January 31 preceding the school year for which the education savings grant is requested, the parent or guardian of the pupil requesting to receive an education savings grant shall submit an application to the department of management, on application forms developed by the department of management, indicating that the parent or guardian intends to enroll the pupil in a nonpublic school, place the pupil under competent private instruction under chapter 299A, or provide private preschool instruction.
   (2)  In addition to such information deemed appropriate by the department of management, the application shall require certification from the nonpublic school of the pupil’s enrollment for the following school year or a statement indicating the parent or guardian’s intent to place the pupil under competent private instruction or private preschool instruction for the following school year.
   b.  By March 1 preceding the school year for which the education savings grant is requested, the department of management shall notify the parent or guardian of each pupil who is approved to receive an education savings grant and the amount of the grant.
   c.  Education savings grants shall only be approved for one school year and applications must be submitted annually for education savings grants in subsequent school years. 
   3.  a.  The department of management shall assign each pupil an education savings grant in an amount equal to the difference between eighty-seven and five-tenths percent of the regular program state cost per pupil and the statewide average foundation property tax per pupil for the same school year. However, for a pupil that is eligible to participate in a preschool program under chapter 256C, the amount of the grant shall be an amount equal to fifty percent of the regular program state cost per pupil for the same school year.
   b.  The department of management shall on July 1 following the determination of the amount of the education savings grant for each approved pupil transfer such amounts to the pupil’s account in the education savings grant fund established under subsection 4. Such amount shall be available to the pupil’s parent or guardian in the manner authorized under subsection 4, paragraph “c”, for the payment of qualified educational expenses incurred by such persons for the pupil during that school year.
   4.  An education savings grant fund is created in the state treasury under the control of the department of management consisting of moneys appropriated to the department of management for the purpose of providing education savings grants under this section. For the fiscal year commencing July 1, 2020, and each succeeding fiscal year, there is appropriated from the general fund of the state to the department of management to be credited to the fund the amount necessary to pay all education savings grants approved for that fiscal year. The director of the department of management has all powers necessary to carry out and effectuate the purposes, objectives, and provisions of this section pertaining to the fund, including the power to do all of the following:
   a.  Make and enter into contracts necessary for the administration of the fund.
   b.  Procure insurance against any loss in connection with the assets of the fund or require a surety bond.
   c.  Contract with a private financial management firm to manage the fund, in collaboration with the treasurer of state, including providing for the disbursement of education savings grants in the form of an electronic debit card or checks that are payable directly from the pupil’s account within the fund.
   d.  Conduct audits or other review necessary to properly administer the program.
   e.  Adopt rules pursuant to chapter 17A for the administration of the fund and accounts within the fund.
   5.  a.  For each pupil approved for an education savings grant, the department of management shall establish an account for that pupil in the education savings grant fund. The amount of the pupil’s education savings grant determined under subsection 3 shall be deposited into the pupil’s account on July 1 and such amount shall be immediately available for the payment of qualified educational expenses incurred by the parent or guardian for the pupil during that fiscal year using the payment method authorized under subsection 4, paragraph “c”.
   b.  A nonpublic school or a provider of competent private instruction that accepts payment from a parent or guardian using funds from a pupil’s account in the education savings grant fund shall not refund, rebate, or share any portion of such payment with the parent, guardian, or pupil.
   c.  Moneys remaining in a pupil’s account upon conclusion of the fiscal year shall remain in the pupil’s account in the education savings grant fund for the payment of qualified educational expenses in future fiscal years or for the payment of higher education costs under subsection 8.
   6.  For purposes of this section, “qualified educational expenses” includes tuition and fees at a nonpublic school or nonpublic preschool, textbooks, fees or payments for tutoring or cognitive skills training, curriculum materials, tuition or fees for nonpublic online education programs, education materials and services for pupils with disabilities, standardized test fees, fees required by the department not to exceed for each grant recipient five percent of the total grant amount in any fiscal year, and other expenses incurred by the parent or guardian that are directly related to the education of the pupil at a nonpublic preschool or a nonpublic school, including a nonpublic school accredited by an independent accrediting agency approved by the department of management, or directly related to providing competent private instruction for the pupil under chapter 299A or private preschool instruction. The cost of one computer or other portable computing device shall be allowed as a qualified educational expense for a pupil if such a purchase has not been made using funds from that pupil’s account in either of the two immediately preceding fiscal years. “Qualified educational expenses” do not include transportation costs for the pupil, the cost of food or refreshments consumed by the pupil, the cost of clothing for the pupil, or the cost of disposable materials including but not limited to paper, notebooks, pencils, pens, and art supplies.
   7.  A person who makes a false claim for the purpose of obtaining an education savings grant provided for in this section or who knowingly receives the grant or makes a payment from an account within the education savings grant fund without being legally entitled to do so is guilty of a fraudulent practice under chapter 714. The false claim for an education savings grant or a payment from an account shall be disallowed. If amounts from the grant have been disbursed from the applicable account in the education savings grant fund, the department of management shall initiate legal proceedings to recover such amounts. A parent or guardian, or a pupil for purposes of subsection 8, who commits a fraudulent practice under this subsection is prohibited from participating in the education savings grant program in the future.
   8.  For each pupil with a positive balance in the pupil’s account in the education savings grant fund upon graduation from high school or completion of an equivalent level of competent private instruction under chapter 299A, the department of management shall maintain such account in the fund until the pupil is twenty-five years of age. Following graduation from high school until the pupil is twenty-five years of age, moneys in the pupil’s account may be used for qualified higher education expenses, as defined in section 12D.1, subsection 2, paragraph “k”, incurred by the pupil while attending an institution of higher education under the control of the state board of regents, a community college located in this state, or a private college or university located in this state. Payments from a pupil’s account for higher education costs shall be made in the same manner as payments for qualified educational expenses under subsection 5. Moneys in a pupil’s account when the pupil turns twenty-five years of age shall be transferred by the department of management for deposit in the general fund of the state.
   9.  This section shall not be construed to authorize the state or any political subdivision of the state to exercise authority over any nonpublic school or provider of competent private instruction under chapter 299A or construed to require a nonpublic school to modify its standards for admission or educational program in order to receive payment from a parent or guardian using funds from a pupil’s account in the education savings grant fund. A nonpublic school or provider of competent private instruction under chapter 299A that accepts payment from a parent or guardian using funds from a pupil’s account in the education savings grant fund is not an agent of this state or of a political subdivision of this state. Rules adopted by the department of management to implement this section that impose an undue burden on a nonpublic school or provider of competent private instruction under chapter 299A are invalid.
    Sec. 77.  Section 422.7, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  48.  Subtract, to the extent included, the amount of an education savings grant under section 257.11B received by the taxpayer for payment of qualified educational expenses.
    Sec. 78.  APPLICABILITY.  Except as otherwise provided, this division of this Act applies to school budget years and fiscal years beginning on or after July 1, 2020.
    Sec. 79.  APPLICABILITY.  The section of this division of this Act enacting section 422.7, subsection 48, applies to tax years beginning on or after January 1, 2020.
    Sec. 80.  EFFECTIVE DATE.  The section of this division of this Act enacting section 257.1A takes effect July 1, 2020.
DIVISION IV
CORRESPONDING AMENDMENTS LEGISLATION

    Sec. 81.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional legislation is required to fully implement the section of division III of this Act enacting section 257.1A. The director of the department of education shall, in compliance with section 2.16, prepare draft legislation for submission to the legislative services agency, as necessary, to implement the transition and elimination of authority and duties of the department of education, the state board of education, and director of the department of education under the section of division III of this Act enacting section 257.1A and to implement the transition and elimination of authority and duties under other provisions of law.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to education and school district funding by modifying the duties and authority of certain state and local governmental entities, establishing an education savings grant program, and modifying the school district funding formula.
   Division I of the bill repeals Code chapter 256, which establishes the department of education, establishes the office of the director of the department of education, establishes the state board of education, specifies certain educational standards, establishes various education programs, establishes certain councils and entities within the department of education, includes provisions relating to the participation in extracurricular activities, establishes the division of library services, includes the library compact, and establishes the public broadcasting division.
   Division I of the bill also amends and repeals other chapters of the Code relating to education to transition the duties and authority of the department of education, the director of the department of education, and the state board of education to other specified local and state governmental entities beginning July 1, 2020.
   Division I of the bill takes effect July 1, 2020.
   Division II of the bill provides that additional legislation is required to fully implement Division I of the bill and requires the director of the department of education to prepare draft legislation for submission to the legislative services agency, as necessary, to implement the transition and elimination of authority and duties under Division I of the bill and to implement the transition and elimination of authority and duties under other provisions of law including but not limited to the duties and authority of the department of education, the state board of education, the director of the department of education, and any division, commission, or subunit of such entities or offices under specified Code chapters.
   Division III of the bill provides that beginning July 1, 2020, the authority and duties of the department of education, the state board of education, and the director of the department of education under Code chapter 257 are transferred to the department of management and the director of the department of management. The bill also provides that moneys remaining in any account or fund under the control of the department of education at the conclusion of the fiscal year beginning July 1, 2019, relative to the provisions of Code chapter 257 are transferred to the control of the department of management for such purposes. The bill provides that any contract entered into by the department of education relating to the provisions of Code chapter 257 in effect at the conclusion of the fiscal year beginning July 1, 2019, shall continue in full force and effect pending transfer of such contracts to the department of management. The bill also provides for the continuation of any rule, regulation, form, order, or directive promulgated by the department of education until amended, repealed, or supplemented by affirmative action of the department of management.
   Division III of the bill provides education savings grants for pupils attending a nonpublic school, receiving competent private instruction, or receiving private preschool instruction and establishes an education savings grant fund.
   Under Division III of the bill, pupils eligible to enroll in grades kindergarten through 12 or eligible to participate in a preschool program under Code chapter 256C and attending a nonpublic school, receiving competent private instruction under Code chapter 299A, or receiving private preschool instruction are eligible to receive an education savings grant for school years beginning on or after July 1, 2020. By January 31 preceding the school year for which the education savings grant is requested, the parent or guardian of the pupil requesting to receive an education savings grant must submit an application to the department of management.
   Division III of the bill requires that by March 1 preceding the school year for which the education savings grant is requested, the department of management must notify the parent or guardian of each pupil designated to receive an education savings grant and the amount of the education savings grant. Education savings grants may only be approved for one school year and annual applications must be submitted for education savings grants in subsequent school years. 
   The amount of each education savings grant is equal to the statewide average regular program state foundation aid per pupil in the same school year or in the case of a preschool eligible pupil an amount equal to 50 percent of the regular program state cost per pupil.
   Division III of the bill creates an education savings grant fund in the state treasury under the control of the department of management consisting of moneys appropriated to the department for the purpose of providing education savings grants. For the fiscal year commencing July 1, 2020, and each succeeding fiscal year, there is appropriated from the general fund of the state to the department of management for deposit in the fund the amount necessary to pay all education savings grants approved for that fiscal year. For each pupil approved for an education savings grant, the department of management must establish an account for that pupil in the education savings grant fund. The amount of the pupil’s education savings grant is deposited into the pupil’s account on July 1 and such amount is available for use by parents and guardians for the payment of qualified educational expenses, as defined in the bill, incurred by the parent or guardian for the pupil during that fiscal year.
   Division III of the bill authorizes the department of management to contract with a private financial management firm to manage the education savings grant fund, in collaboration with the treasurer of state, including providing for the disbursement of education savings grants in the form of an electronic debit card or checks that are payable directly from the pupil’s account within the fund.
   Division III of the bill provides that moneys remaining in a pupil’s account upon the conclusion of the fiscal year shall remain in the pupil’s account within the education savings grant fund for the payment of qualified educational expenses in future fiscal years or for higher education costs as authorized in the bill.
   Under the division, for each pupil with a positive balance in the pupil’s account in the education savings grant fund upon graduation from high school or completion of an equivalent level of competent private instruction under Code chapter 299A, the department of management is required to maintain the account in the fund until the pupil is 25 years old. Until the pupil is 25 years old, moneys in the pupil’s account may be used by the pupil for qualified higher education expenses, as defined in Code section 12D.1. Moneys in a pupil’s account when the pupil turns 25 years old are transferred by the department of management for deposit in the general fund of the state.
   Division III of the bill provides that a person who makes a false claim for the purpose of obtaining an education savings grant or who knowingly receives the grant or makes a payment from an account within the education savings grant fund without being legally entitled to do so is guilty of a fraudulent practice and is subject to a criminal penalty. The bill allows the department of management to initiate legal proceedings to recover grants and amounts improperly awarded or paid from accounts under the bill.
   Division III of the bill provides that an education savings grant received by a taxpayer is not taxable income for purposes of state individual income taxation. This provision of the bill applies to tax years beginning on or after January 1, 2020.
   The section of Division III of the bill enacting Code section 257.1A takes effect July 1, 2020. Division III of the bill applies to school budget years and fiscal years beginning on or after July 1, 2020.
   Division IV of the bill provides that additional legislation is required to fully implement Division III of the bill and requires the director of the department of education to prepare draft legislation for submission to the legislative services agency, as necessary, to implement the transition and elimination of authority and duties of the department of education pursuant to new Code section 257.1A and to implement the transition and elimination of authority and duties under other provisions of law.