House Study Bill 240 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON HITE) A BILL FOR An Act relating to educational programs, information, funding, 1 tax credits and deductions, open enrollment, supplementary 2 weighting, and including effective date and retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2474YC (7) 89 md/jh

H.F. _____ DIVISION I 1 EDUCATION INFORMATION, PROGRAM STANDARDS, AND FUNDING 2 Section 1. Section 22.7, subsection 1, Code 2021, is amended 3 to read as follows: 4 1. Personal information in records regarding a student, 5 prospective student, or former student maintained, created, 6 collected or assembled by or for a school corporation or 7 educational institution maintaining such records. This 8 subsection shall not be construed to prohibit a postsecondary 9 education institution from disclosing to a parent or guardian 10 information regarding a violation of a federal, state, or 11 local law, or institutional rule or policy governing the use 12 or possession of alcohol or a controlled substance if the 13 child is under the age of twenty-one years and the institution 14 determines that the student committed a disciplinary violation 15 with respect to the use or possession of alcohol or a 16 controlled substance regardless of whether that information is 17 contained in the student’s education records. This subsection 18 shall not be construed to prohibit a school corporation or 19 educational institution from transferring student records 20 electronically to the department of education, an accredited 21 nonpublic school, an attendance center, a school district, or 22 an accredited postsecondary institution in accordance with 23 section 256.9, subsection 44 11 . 24 Sec. 2. Section 256.9, subsection 11, Code 2021, is amended 25 by striking the subsection and inserting in lieu thereof the 26 following: 27 11. a. Approve, coordinate, and supervise the use of 28 electronic data and information processing by school districts, 29 area education agencies, and merged areas, including the 30 procurement or development of a single, comprehensive, 31 statewide, student information system that is required to be 32 used by all school districts, accredited nonpublic schools, and 33 area education agencies. 34 b. (1) The student information system procured or developed 35 -1- LSB 2474YC (7) 89 md/jh 1/ 25

H.F. _____ shall be designed for the purpose of establishing standardized 1 electronic data collections and reporting protocols that 2 facilitate compliance with state and federal reporting 3 requirements, improve school-to-school and district-to-district 4 information exchanges, and maintain the confidentiality of 5 individual student and staff data. 6 (2) The system shall provide for the electronic transfer 7 of individual student records between attendance centers, 8 school districts, accredited nonpublic schools, area education 9 agencies, postsecondary institutions, merged areas, and the 10 department. 11 (3) The system shall be designed to ensure compatibility 12 with other information or data management systems used or 13 maintained by postsecondary institutions and merged areas as 14 required by law. 15 c. The director shall, to the extent practicable, establish 16 a uniform coding and reporting system as part of the student 17 information system. 18 d. The department shall pay for the procurement or 19 development of the student information system and shall pay 20 for at least the first year of statewide implementation, after 21 which the cost of operating the system may be funded through 22 the collection of a fee by the department from each school 23 district and accredited nonpublic school. The amount of the 24 fee shall be based on a per-student rate, not to exceed seven 25 dollars per student for the first year of the fee and set to 26 raise an amount equal to the actual cost of the electronic 27 data collection system minus administrative costs of the 28 department related to the system. If the cost of the system 29 is funded through collection of a fee by the department, after 30 consultation with stakeholders, the department shall adopt by 31 rule the per student fee for subsequent years based on the 32 actual cost of the electronic data collection system minus 33 administrative costs of the department. 34 e. The student information system shall only be used for 35 -2- LSB 2474YC (7) 89 md/jh 2/ 25

H.F. _____ the purpose of collecting information from school districts, 1 accredited nonpublic schools, and area education agencies 2 required by state or federal law or for preparation of state 3 or federal reports. 4 f. A school district, accredited nonpublic school, or area 5 education agency shall not duplicate the collection of any 6 information in the student information system. 7 Sec. 3. Section 256.9, subsection 44, Code 2021, is amended 8 by striking the subsection. 9 Sec. 4. Section 256.11, subsection 8, Code 2021, is amended 10 by striking the subsection and inserting in lieu thereof the 11 following: 12 8. a. The state board shall establish a flexible student 13 and school support program to be administered by the director. 14 Under the program, upon request of the board of directors of 15 a public school district or the authorities in charge of an 16 accredited nonpublic school, the director may, for a period 17 not to exceed three years, grant the applicable board of 18 directors or the authority in charge of the nonpublic school 19 the ability to use the flexible student and school support 20 program to implement evidence-based practices in innovative 21 ways to enhance student learning, well-being, and postsecondary 22 success. 23 b. Approval to participate in the flexible student and 24 school support program shall exempt the school district or 25 nonpublic school from one or more of the requirements of 26 the educational program specified in subsection 3, 4, or 5, 27 subsection 6, paragraph “b” or “c” , subsection 7, paragraph “b” 28 or “c” , or the minimum school calendar requirements in section 29 279.10, subsection 1. An exemption shall be granted only 30 if the director deems that the request made is an essential 31 part of an educational program to support student learning, 32 well-being, and postsecondary success; is necessary for the 33 success of the program; and is broadly consistent with the 34 intent of the requirements of the educational program specified 35 -3- LSB 2474YC (7) 89 md/jh 3/ 25

H.F. _____ in subsection 3, 4, or 5, subsection 6, paragraph “b” or “c” , 1 subsection 7, paragraph “b” or “c” , or the minimum school 2 calendar requirements in section 279.10, subsection 1. 3 c. Approval to participate in the flexible student and 4 school support program shall include authority for a school 5 district to use funds from the school district’s flexibility 6 account under section 298A.2, subsection 2, to implement all or 7 part of the flexible student and school support program. 8 d. The application for the flexible student and school 9 support program shall include all of the following and 10 be submitted on forms and in a format prescribed by the 11 department: 12 (1) A description of the proposed educational program, 13 including evidence used to design the program and evidence of 14 involvement of board members, parents, students, community 15 members, and staff in development of the program. 16 (2) Program goals and measures of program effectiveness and 17 success, including student success and performance. 18 (3) A plan for program administration, including the use of 19 personnel, facilities, and funding. 20 (4) A plan for evaluation of the proposed program on at 21 least an annual basis, including a plan for program revisions, 22 if necessary. 23 (5) The estimated financial impact of the program on the 24 school district or nonpublic school. 25 e. Approval to participate in the program does not exempt 26 the school district or nonpublic school from federal law or 27 any other requirements of state law that are not specifically 28 exempted by the director. 29 f. Each school district or nonpublic school approved to 30 participate in the flexible student and school support program 31 shall file an annual report with the department on the status 32 of the program on forms and in a format prescribed by the 33 department. 34 g. Participation in the flexible student and school support 35 -4- LSB 2474YC (7) 89 md/jh 4/ 25

H.F. _____ program may be renewed for additional periods of years, each 1 not to exceed three years. The director may revoke approval of 2 all or part of any application or approved education program 3 if the annual report or any other information available to 4 the department indicates that conditions no longer warrant 5 use of an exemption or funding from the school district’s 6 flexibility account under section 298A.2, subsection 2. Notice 7 of revocation must be provided by the director to the school 8 district or nonpublic school prior to the beginning of the 9 school year for which participation is revoked. 10 Sec. 5. Section 257.10, subsection 9, paragraph d, Code 11 2021, is amended to read as follows: 12 d. For the budget year beginning July 1, 2009, the use 13 of the funds calculated under this subsection shall comply 14 with the requirements of chapter 284 and shall be distributed 15 to teachers pursuant to section 284.3A . For the budget year 16 beginning July 1, 2010, and succeeding budget years, the use 17 of the funds calculated under this subsection shall comply 18 with the requirements of chapter 284 and shall be distributed 19 to teachers pursuant to section 284.3A . If all teacher 20 compensation requirements of chapter 284 for the school 21 district are met and funds received under this subsection 22 remain unexpended and unobligated at the end of a fiscal year 23 beginning on or after July 1, 2020, the school district may 24 transfer all or a portion of such unexpended and unobligated 25 funds for deposit in the school district’s flexibility account 26 established under section 298A.2, subsection 2. 27 Sec. 6. Section 257.10, subsection 12, paragraph d, Code 28 2021, is amended to read as follows: 29 d. For the budget year beginning July 1, 2014, and 30 succeeding budget years, the use of the funds calculated under 31 this subsection shall comply with the requirements of chapter 32 284 and shall be distributed to teachers pursuant to section 33 284.15 . The funds shall be used only to increase the payment 34 for a teacher assigned to a leadership role pursuant to a 35 -5- LSB 2474YC (7) 89 md/jh 5/ 25

H.F. _____ framework or comparable system approved pursuant to section 1 284.15 ; to increase the percentages of teachers assigned to 2 leadership roles; to increase the minimum teacher starting 3 salary to thirty-three thousand five hundred dollars; to 4 cover the costs for the time mentor and lead teachers are 5 not providing instruction to students in a classroom; for 6 coverage of a classroom when an initial or career teacher 7 is observing or co-teaching with a teacher assigned to a 8 leadership role; for professional development time to learn 9 best practices associated with the career pathways leadership 10 process; and for other costs associated with a framework or 11 comparable system approved by the department of education under 12 section 284.15 with the goals of improving instruction and 13 elevating the quality of teaching and student learning. If 14 all requirements for the school district for the use of funds 15 calculated under this subsection are met and funds received 16 under this subsection remain unexpended and unobligated at 17 the end of a fiscal year beginning on or after July 1, 2020, 18 the school district may transfer all or a portion of such 19 unexpended and unobligated funds for deposit in the school 20 district’s flexibility account established under section 21 298A.2, subsection 2. 22 Sec. 7. Section 298A.2, subsection 2, paragraph a, Code 23 2021, is amended by adding the following new subparagraphs: 24 NEW SUBPARAGRAPH . (4) Teacher salary supplement funds 25 received under section 257.10, subsection 9. 26 NEW SUBPARAGRAPH . (5) Teacher leadership supplement funds 27 received under section 257.10, subsection 12. 28 Sec. 8. Section 298A.2, subsection 2, paragraph c, Code 29 2021, is amended by adding the following new subparagraph: 30 NEW SUBPARAGRAPH . (8) An approved flexible student and 31 school support program under section 256.11, subsection 8. 32 DIVISION II 33 EDUCATION TAX CREDITS AND DEDUCTIONS 34 Sec. 9. Section 2.48, subsection 3, paragraph b, 35 -6- LSB 2474YC (7) 89 md/jh 6/ 25

H.F. _____ subparagraph (5), Code 2021, is amended to read as follows: 1 (5) Tuition and textbook tax credits under section 422.12 2 422.12D . 3 Sec. 10. Section 422.7, subsection 55, Code 2021, is amended 4 to read as follows: 5 55. A taxpayer who is an eligible educator as defined in 6 section 62(d)(1) of the Internal Revenue Code is allowed to 7 take the deduction for certain expenses of elementary and 8 secondary school teachers allowed under section 62(a)(2)(D) of 9 the Internal Revenue Code , as amended by the federal Emergency 10 Economic Stabilization Act of 2008, Pub. L. No. 110-343, in 11 computing net income for state tax purposes in excess of 12 the amount of the taxpayer’s deduction for certain expenses 13 of elementary and secondary school teachers for federal tax 14 purposes allowed under section 62(a)(2)(D) of the Internal 15 Revenue Code, but not to exceed five hundred dollars . 16 Sec. 11. Section 422.12, subsection 1, paragraphs d and e, 17 Code 2021, are amended by striking the paragraphs. 18 Sec. 12. Section 422.12, subsection 2, paragraph b, Code 19 2021, is amended by striking the paragraph. 20 Sec. 13. NEW SECTION . 422.12D Tuition and textbook tax 21 credit. 22 1. For purposes of this section, unless the context 23 otherwise requires: 24 a. “Private instruction” means independent private 25 instruction as defined in section 299A.1, subsection 2, 26 paragraph “b” , competent private instruction under section 27 299A.2, or private instruction provided to a resident of this 28 state by a nonlicensed person under section 299A.3. 29 b. “Textbooks” means books and other instructional materials 30 and equipment used in elementary and secondary schools in 31 teaching only those subjects legally and commonly taught in 32 public elementary and secondary schools in this state and 33 does not include instructional books and materials used in 34 the teaching of religious tenets, doctrines, or worship, the 35 -7- LSB 2474YC (7) 89 md/jh 7/ 25

H.F. _____ purpose of which is to inculcate those tenets, doctrines, or 1 worship. “Textbooks” includes books or materials used for 2 extracurricular activities including sporting events, musical 3 or dramatic events, speech activities, driver’s education, or 4 programs of a similar nature. 5 c. “Tuition” means any charges for the expenses of 6 personnel, buildings, equipment, and materials other than 7 textbooks, and other expenses of elementary or secondary 8 schools which relate to the teaching only of those subjects 9 legally and commonly taught in public elementary and 10 secondary schools in this state and which do not relate to 11 the teaching of religious tenets, doctrines, or worship, the 12 purpose of which is to inculcate those tenets, doctrines, or 13 worship. “Tuition” includes those expenses which relate to 14 extracurricular activities including sporting events, musical 15 or dramatic events, speech activities, driver’s education, or 16 programs of a similar nature. 17 2. The taxes imposed under this subchapter, less the credits 18 allowed under section 422.12, shall be reduced by a tuition 19 and textbook credit equal to fifty percent of the first two 20 thousand dollars which the taxpayer has paid to others for each 21 dependent in grades kindergarten through twelve, for tuition 22 and textbooks of each dependent who is receiving private 23 instruction or who is attending an elementary or secondary 24 school situated in Iowa, which school is accredited or approved 25 under section 256.11, which is not operated for profit, and 26 which adheres to the provisions of the federal Civil Rights Act 27 of 1964 and chapter 216. 28 3. The department, when conducting an audit of a taxpayer’s 29 return, shall also audit the tuition and textbook tax credit 30 portion of the tax return. 31 4. Any credit allowed under this section in excess of 32 the tax liability shall be refunded. In lieu of claiming a 33 refund, the taxpayer may elect to have the overpayment shown 34 on the taxpayer’s final, completed return credited to the tax 35 -8- LSB 2474YC (7) 89 md/jh 8/ 25

H.F. _____ liability for the following taxable year. 1 5. Married taxpayers who have filed joint federal returns 2 electing to file separate returns or to file separately on a 3 combined return form must determine the tuition and textbook 4 tax credit based upon their combined net income and allocate 5 the total credit amount to each spouse in the proportion that 6 each spouse’s respective net income bears to the total combined 7 net income. Nonresidents or part-year residents of Iowa must 8 determine their tuition and textbook tax credit in the ratio of 9 their Iowa source net income to their all source net income. 10 Nonresidents or part-year residents who are married and elect 11 to file separate returns or to file separately on a combined 12 return form must allocate the tuition and textbook tax credit 13 between the spouses in the ratio of each spouse’s Iowa source 14 net income to the combined Iowa source net income of the 15 taxpayers. 16 Sec. 14. 2018 Iowa Acts, chapter 1161, section 118, is 17 amended to read as follows: 18 SEC. 118. Section 422.7, subsections 3, 7, 8, 9, 10, 11, 14, 19 15, 16, 20, 22, 24, 25, 26, 30, 35, 36, 37, 39, 39B, 40, 43, 45, 20 49, 53, 55, 56, 57, and 58 , Code 2018, are amended by striking 21 the subsections. 22 Sec. 15. EFFECTIVE DATE. This division of this Act, being 23 deemed of immediate importance, takes effect upon enactment. 24 Sec. 16. RETROACTIVE APPLICABILITY. The following apply 25 retroactively to January 1, 2021, for tax years beginning on 26 or after that date: 27 1. The section of this division of this Act amending section 28 422.7, subsection 55. 29 2. The section of this division of this Act amending section 30 422.12, subsection 1, paragraphs “d” and “e”. 31 3. The section of this division of this Act amending section 32 422.12, subsection 2, paragraph “b”. 33 4. The section of this division of this Act enacting section 34 422.12D. 35 -9- LSB 2474YC (7) 89 md/jh 9/ 25

H.F. _____ DIVISION III 1 SCHOOL DISTRICT ENROLLMENT WORKING GROUP 2 Sec. 17. SCHOOL DISTRICT ENROLLMENT WORKING GROUP. 3 1. The department of education shall convene a school 4 district enrollment working group to review the methodology 5 and timing of determinations of school district enrollment, 6 including examination of the current on-time funding authorized 7 under section 257.13, the budget adjustment authorized under 8 section 257.14, the types and amounts of funding paid for 9 students open enrolled under section 282.18, and alternative 10 methods for determining school district enrollments. 11 2. Voting members of the working group shall include 12 representatives from all of the following: 13 a. The Iowa association of school boards. 14 b. The school administrators of Iowa. 15 c. The urban education network of Iowa. 16 d. The Iowa association of school business officials. 17 e. A representative of a school district designated by the 18 rural school advocates of Iowa. 19 f. A representative of a school district designated by the 20 urban education network of Iowa. 21 3. Four members of the general assembly shall serve as 22 ex officio, nonvoting members of the working group, with one 23 member to be appointed by each of the following: the majority 24 leader of the senate, the minority leader of the senate, the 25 speaker of the house of representatives, and the minority 26 leader of the house of representatives. 27 4. The director of the department of education, or the 28 director’s designee, and the director of the department of 29 management, or the director’s designee, shall each serve as ex 30 officio, nonvoting members of the working group. 31 5. The working group shall submit its findings and 32 recommendations to the general assembly not later than December 33 1, 2021. 34 Sec. 18. EFFECTIVE DATE. This division of this Act, being 35 -10- LSB 2474YC (7) 89 md/jh 10/ 25

H.F. _____ deemed of immediate importance, takes effect upon enactment. 1 DIVISION IV 2 OPEN ENROLLMENT 3 Sec. 19. Section 256.46, subsection 1, Code 2021, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH . i. If the child’s former school or school 6 district, if located in this state, was unable to participate 7 in varsity interscholastic sports as the result of a decision 8 or implementation of a decision of the school board or 9 superintendent. 10 Sec. 20. Section 282.18, subsection 2, paragraph a, Code 11 2021, is amended to read as follows: 12 a. By March 1 of the preceding school year for students 13 entering grades one through twelve, or by September 1 of the 14 current school year for students entering kindergarten or for 15 prekindergarten students enrolled in special education programs 16 and included in the school district’s basic enrollment under 17 section 257.6, subsection 1, paragraph “a” , subparagraph (1) , 18 the parent or guardian shall send notification to the district 19 of residence and the receiving district, on forms prescribed 20 by the department of education, that the parent or guardian 21 intends to enroll the parent’s or guardian’s child in a public 22 school in another school district. If a parent or guardian 23 fails to file a notification that the parent intends to enroll 24 the parent’s or guardian’s child in a public school in another 25 district by the deadline specified in this subsection , the 26 procedures of subsection 4 apply. 27 Sec. 21. Section 282.18, subsection 4, paragraph b, Code 28 2021, is amended to read as follows: 29 b. For purposes of this section , “good cause” : 30 (1) “Good cause” means a change in a child’s residence 31 due to a change in family residence, a change in a child’s 32 residence from the residence of one parent or guardian to 33 the residence of a different parent or guardian, a change 34 in the state in which the family residence is located, a 35 -11- LSB 2474YC (7) 89 md/jh 11/ 25

H.F. _____ change in a child’s parents’ marital status, a guardianship 1 or custody proceeding, placement in foster care, adoption, 2 participation in a foreign exchange program, initial placement 3 of a prekindergarten student in a special education program 4 requiring specially designed instruction, or participation 5 in a substance abuse or mental health treatment program, a 6 change in the status of a child’s resident district such as 7 removal of accreditation by the state board, surrender of 8 accreditation, or permanent closure of a nonpublic school, 9 revocation of a charter school contract as provided in section 10 256F.8 , the failure of negotiations for a whole grade sharing, 11 reorganization, dissolution agreement , or the rejection of a 12 current whole grade sharing agreement, or reorganization plan , 13 or if the child’s assigned attendance center in the district of 14 residence is identified as in significant need for improvement . 15 If the good cause relates to a change in status of a child’s 16 school district of residence, however, action by a parent 17 or guardian must be taken to file the notification within 18 forty-five days of the last board action or within thirty days 19 of the certification of the election, whichever is applicable 20 to the circumstances. 21 (2) “Significant need for improvement” means a school 22 attendance center designated by the department of education 23 under the priority category under the Iowa school performance 24 profiles for two or more of the immediately preceding school 25 years or identified for comprehensive support and improvement 26 under the federal Every Student Succeeds Act, Pub. L. No. 27 114-95, or an equivalent objective federal standard, for two or 28 more of the immediately preceding school years. 29 Sec. 22. Section 282.18, subsection 5, Code 2021, is amended 30 to read as follows: 31 5. Open enrollment applications filed after March 1 32 of the preceding school year that do not qualify for good 33 cause as provided in subsection 4 shall be subject to the 34 approval of the board of the resident district and the board 35 -12- LSB 2474YC (7) 89 md/jh 12/ 25

H.F. _____ of the receiving district. The parent or guardian shall send 1 notification to the district of residence and the receiving 2 district that the parent or guardian seeks to enroll the 3 parent’s or guardian’s child in the receiving district. A 4 decision of either board to deny an application filed under 5 this subsection involving repeated acts of harassment of the 6 student that the resident district cannot adequately address, 7 a consistent failure of the resident district to reasonably 8 respond to a student’s failure to meet basic academic standards 9 after notice provided by a parent or guardian, or a serious 10 health condition of the student that the resident district 11 cannot adequately address is subject to appeal under section 12 290.1 . The state board shall adopt by rule the criteria 13 for determining a resident district’s consistent failure 14 to reasonably respond to a student’s failure to meet basic 15 academic standards and shall exercise broad discretion to 16 achieve just and equitable results that are in the best 17 interest of the affected child or children. 18 Sec. 23. Section 282.18, subsection 9, paragraphs a, b, and 19 c, Code 2021, are amended to read as follows: 20 a. If a parent or guardian of a child, who is participating 21 in open enrollment under this section , moves to a different 22 school district during the course of either district’s academic 23 year, the child’s first district of residence as determined on 24 the date specified in section 257.6, subsection 1, shall be 25 responsible for payment of the cost per pupil plus weightings 26 or special education costs to the receiving school district for 27 the balance of the school year in which the move took place. 28 The new district of residence shall be responsible for the 29 payments during succeeding years. 30 b. If a request to transfer is due to a change in family 31 residence, a change in a child’s residence from the residence 32 of one parent or guardian to the residence of a different 33 parent or guardian, a change in the state in which the family 34 residence is located, a change in a child’s parents’ marital 35 -13- LSB 2474YC (7) 89 md/jh 13/ 25

H.F. _____ status, a guardianship proceeding, placement in foster care, 1 adoption, participation in a foreign exchange program, or 2 participation in a substance abuse or mental health treatment 3 program, and the child who is the subject of the request is 4 enrolled in any grade from kindergarten through grade twelve 5 or who is a prekindergarten student enrolled in a special 6 education program at the time of the request and is not 7 currently using any provision of open enrollment, the parent or 8 guardian of the child shall have the option to have the child 9 remain in the child’s original district of residence under open 10 enrollment with no interruption in the child’s kindergarten 11 through grade twelve educational program. If a parent or 12 guardian exercises this option, the child’s new district of 13 residence is not required to pay the amount calculated in 14 subsection 7 or 8, as applicable, until the start of the first 15 full year of enrollment of the child. 16 c. The receiving district shall bill the first resident 17 district determined under paragraph “a” according to the 18 timeline in section 282.20, subsection 3 . Payments shall be 19 made to the receiving district in a timely manner. 20 Sec. 24. Section 282.18, subsection 10, paragraph c, Code 21 2021, is amended to read as follows: 22 c. If the pupil meets the economic eligibility requirements 23 established by the department and state board of education, the 24 sending district is responsible for providing transportation 25 or paying the pro rata cost of the transportation to a parent 26 or guardian for transporting the pupil to and from a point 27 on a regular school bus route of a contiguous receiving 28 district unless the cost of providing transportation or the 29 pro rata cost of the transportation to a parent or guardian 30 exceeds the average transportation cost per pupil transported 31 for the previous school year in the district. The economic 32 eligibility requirements established by the department of 33 education and state board of education shall minimally include 34 those pupils with household incomes of two hundred percent 35 -14- LSB 2474YC (7) 89 md/jh 14/ 25

H.F. _____ or less of the federal poverty level as defined by the most 1 recently revised poverty income guidelines published by the 2 United States department of health and human services. If 3 the cost exceeds the average transportation cost per pupil 4 transported for the previous school year, the sending district 5 shall only be responsible for that average per pupil amount. 6 A sending district which provides transportation for a pupil 7 to a contiguous receiving district under this subsection may 8 withhold, from the district cost per pupil amount that is to 9 be paid to the receiving district, an amount which represents 10 the average or pro rata cost per pupil for transportation, 11 whichever is less. 12 Sec. 25. Section 282.18, subsection 11, paragraph a, Code 13 2021, is amended by adding the following new subparagraphs: 14 NEW SUBPARAGRAPH . (8) If the pupil participates in open 15 enrollment because of circumstances that meet the definition of 16 good cause under subsection 4, paragraph “b” . 17 NEW SUBPARAGRAPH . (9) If the board of directors or 18 superintendent of the district of residence issues or 19 implements a decision that results in the discontinuance or 20 suspension of varsity interscholastic sports activities in the 21 district of residence. 22 Sec. 26. Section 282.18, subsection 11, Code 2021, is 23 amended by adding the following new paragraph: 24 NEW PARAGRAPH . 0c. If a pupil is declared ineligible for 25 interscholastic athletic contests and athletic competitions in 26 the pupil’s district of residence due to the pupil’s academic 27 performance, upon participating in open enrollment, in addition 28 to any other period of ineligibility under this subsection, the 29 pupil shall be ineligible in the receiving district for the 30 remaining period of ineligibility declared by the district of 31 residence. 32 Sec. 27. RETROACTIVE APPLICABILITY. The following apply 33 retroactively to July 1, 2020: 34 1. The section of this division of this Act enacting section 35 -15- LSB 2474YC (7) 89 md/jh 15/ 25

H.F. _____ 256.46, subsection 1, paragraph “i”. 1 2. The portion of the section of this division of this 2 Act enacting section 282.18, subsection 11, paragraph “a”, 3 subparagraph (9). 4 DIVISION V 5 SCHOOL BOARD POWERS AND DUTIES 6 Sec. 28. Section 279.1, Code 2021, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 3. A school corporation is entrusted with 9 public funds for the purpose of improving student outcomes, 10 including but not limited to student academic achievement and 11 skill proficiency, and the board of directors of the school 12 corporation is responsible for overseeing such improvement. 13 DIVISION VI 14 SHARED OPERATIONAL FUNCTIONS 15 Sec. 29. Section 257.11, subsection 5, paragraph a, Code 16 2021, is amended to read as follows: 17 a. (1) In order to provide additional funding to 18 increase student opportunities and redirect more resources 19 to student programming for school districts that share 20 operational functions, a district that shares with a 21 political subdivision one or more operational functions of 22 a curriculum director, master social worker, independent 23 social worker, work-based learning coordinator, or school 24 counselor, or one or more operational functions in the areas 25 of superintendent management, business management, human 26 resources, transportation, or operation and maintenance for at 27 least twenty percent of the school year shall be assigned a 28 supplementary weighting for each shared operational function. 29 A school district that shares an operational function in 30 the area of superintendent management shall be assigned a 31 supplementary weighting of eight pupils for the function. A 32 school district that shares an operational function in the area 33 of business management, human resources, transportation, or 34 operation and maintenance shall be assigned a supplementary 35 -16- LSB 2474YC (7) 89 md/jh 16/ 25

H.F. _____ weighting of five pupils for the function. A school district 1 that shares the operational functions of a curriculum director, 2 a master social worker or an independent social worker licensed 3 under chapters 147 and 154C , a work-based learning coordinator, 4 or a school counselor shall be assigned a supplementary 5 weighting of three pupils for the function. The additional 6 weighting shall be assigned for each discrete operational 7 function shared. However, a school district may receive the 8 additional weighting under this subsection for sharing the 9 services of an individual with a political subdivision even if 10 the type of operational function performed by the individual 11 for the school district and the type of operational function 12 performed by the individual for the political subdivision are 13 not the same operational function, so long as both operational 14 functions are eligible for weighting under this subsection . In 15 such case, the school district shall be assigned the additional 16 weighting for the type of operational function that the 17 individual performs for the school district, and the school 18 district shall not receive additional weighting for any other 19 function performed by the individual. The operational function 20 sharing arrangement does not need to be a newly implemented 21 sharing arrangement to receive supplementary weighting under 22 this subsection . 23 (2) For the purposes of this section, “political 24 subdivision” paragraph “a” : 25 (a) “Political subdivision” means a city, township, county, 26 school corporation, merged area, area education agency, 27 institution governed by the state board of regents, or any 28 other governmental subdivision. 29 (b) “Work-based learning coordinator” means an appropriately 30 trained individual responsible for facilitating authentic, 31 engaging work-based learning experiences for learners and 32 educators in partnership with employers and others to enhance 33 learning by connecting the content and skills that are 34 necessary for future careers. 35 -17- LSB 2474YC (7) 89 md/jh 17/ 25

H.F. _____ Sec. 30. APPLICABILITY. This division of this Act applies 1 to school budget years beginning on or after July 1, 2021, 2 subject to the school budget year limitations of section 3 257.11, subsection 5. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to educational programs, information, 8 funding, tax credits and deductions, open enrollment, and 9 supplementary weighting, and is organized in divisions. 10 Division I of the bill modifies and consolidates language 11 regarding electronic data and information duties of the 12 director of the department of education. Under the bill, the 13 director is required to approve, coordinate, and supervise the 14 use of electronic data and information processing by school 15 districts, area education agencies, and merged areas, including 16 the procurement or development of a single, comprehensive, 17 statewide, student information system that is required to be 18 used by all school districts, accredited nonpublic schools, 19 and area education agencies. The student information system 20 procured or developed must be designed for the purpose of 21 establishing standardized electronic data collections and 22 reporting protocols that facilitate compliance with state and 23 federal reporting requirements, improve school-to-school and 24 district-to-district information exchanges, and maintain the 25 confidentiality of individual student and staff data. 26 The department of education is required to pay for the 27 procurement or development of the student information system 28 and shall pay for at least the first year of statewide 29 implementation, after which the cost of operating the system 30 may be funded through the collection of a fee by the department 31 from each school district and accredited nonpublic school. The 32 amount of the fee shall be based on a per-student rate, not to 33 exceed $7 per student for the first year of the fee and set to 34 raise an amount equal to the actual cost of the electronic data 35 -18- LSB 2474YC (7) 89 md/jh 18/ 25

H.F. _____ collection system minus administrative costs of the department 1 related to the system. Additionally, if the cost of the system 2 is funded through collection of a fee by the department, after 3 consultation with stakeholders, the department shall adopt by 4 rule the per-student fee for subsequent years based on the 5 actual cost of the electronic data collection system minus 6 administrative costs of the department. 7 Division I also requires the state board of education to 8 establish a flexible student and school support program to be 9 administered by the director of the department of education. 10 Under such program, upon request of the board of directors of 11 a public school district or the authorities in charge of an 12 accredited nonpublic school, the director may, for a period 13 not to exceed three years, grant the applicable board of 14 directors or the authority in charge of the nonpublic school 15 the ability to use the flexible student and school support 16 program to implement evidence-based practices in innovative 17 ways to enhance student learning, well-being, and postsecondary 18 success. Approval to participate in the flexible student 19 and school support program shall exempt the school district 20 or nonpublic school from one or more requirements of the 21 educational program specified in the bill or the minimum 22 school calendar requirements in Code section 279.10. An 23 exemption shall be granted only if the director deems that the 24 request made is an essential part of an educational program 25 to support student learning, well-being, and postsecondary 26 success; is necessary for the success of the program; and 27 is broadly consistent with the intent of the requirements 28 of the educational program or the minimum school calendar 29 requirements. 30 Approval to participate in the flexible student and school 31 support program also includes the authority for a school 32 district to use funds from the school district’s flexibility 33 account under Code section 298A.2(2) to implement all or part 34 of the flexible student and school support program. The bill 35 -19- LSB 2474YC (7) 89 md/jh 19/ 25