House File 2713 - Introduced HOUSE FILE 2713 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 735) A BILL FOR An Act relating to education, including by modifying provisions 1 related to charter schools, the Iowa public employees’ 2 retirement system, financing programs for charter schools 3 and nonpublic schools administered by the Iowa finance 4 authority, the statewide voluntary preschool program for 5 the school start date, training and licensure, and making 6 appropriations, and including applicability and retroactive 7 applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 5427HV (3) 91 jda/jh

H.F. 2713 DIVISION I 1 CHARTER SCHOOL FUNDING 2 Section 1. Section 256E.8, subsection 2, paragraph a, Code 3 2026, is amended to read as follows: 4 a. The charter school in which the student is enrolled 5 shall receive under paragraph “c” an amount equal to the sum 6 of the regular program state cost per pupil for the budget 7 year plus the teacher leadership supplement state cost per 8 pupil, the teacher salary supplement state cost per pupil, the 9 professional development supplement state cost per pupil, and 10 the early intervention supplement state cost per pupil for 11 the budget year as provided in section 257.9 plus any moneys 12 that would be due to the school district of residence for the 13 student as a result of the non-English speaking weighting under 14 section 280.4, subsection 3 , for the budget year multiplied by 15 the state cost per pupil for the budget year. If a student 16 is an eligible pupil under section 261E.6 , the charter school 17 shall pay the tuition reimbursement amount to an eligible 18 postsecondary institution as provided in section 261E.7 . 19 Sec. 2. APPLICABILITY. This division of this Act applies to 20 school budget years beginning on or after July 1, 2026. 21 DIVISION II 22 IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM 23 Sec. 3. Section 97B.1A, subsection 8, paragraph a, Code 24 2026, is amended by adding the following new subparagraph: 25 NEW SUBPARAGRAPH . (13) Persons employed by a charter 26 school established pursuant to chapter 256E that satisfies all 27 applicable requirements under federal law for participation in 28 the retirement system. 29 Sec. 4. Section 97B.1A, subsection 9, paragraph a, Code 30 2026, is amended to read as follows: 31 a. “Employer” means the state of Iowa, the counties, 32 municipalities, agencies, public school districts, charter 33 schools established pursuant to chapter 256E that satisfy all 34 applicable requirements under federal law for participation 35 -1- LSB 5427HV (3) 91 jda/jh 1/ 22

H.F. 2713 in the retirement system, all political subdivisions, and 1 all of their departments and instrumentalities, including 2 area agencies on aging, other than those employing persons as 3 specified in subsection 8 , paragraph “b” , subparagraph (7), and 4 joint planning commissions created under chapter 28E or 28I . 5 Sec. 5. Section 256E.11, subsection 2, Code 2026, is amended 6 to read as follows: 7 2. In the event of a charter school closure, the assets of 8 the charter school shall be used first to satisfy outstanding 9 payroll obligations for employees of the school and any 10 liabilities due and owing to the Iowa public employees’ 11 retirement system , then to creditors of the school, then to the 12 public school district in which the charter school operated, 13 if applicable, and then to the state general fund. If the 14 assets of the charter school are insufficient to pay all 15 obligations of the charter school, the prioritization of the 16 distribution of assets shall be consistent with this subsection 17 and otherwise determined by the district court. 18 DIVISION III 19 EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR 20 COMPETITIONS PROVIDED BY PUBLIC SCHOOLS 21 Sec. 6. Section 280.13D, Code 2026, is amended to read as 22 follows: 23 280.13D Participation in extracurricular interscholastic 24 athletic contests or competitions provided by public schools. 25 1. a. The board of directors of a school district shall 26 allow a student who resides within the school district, and 27 who is enrolled in a nonpublic school or a charter school 28 established pursuant to chapter 256E , to participate in any 29 extracurricular interscholastic athletic contest or competition 30 that is provided by the school district pursuant to the terms 31 of an agreement between the board of directors of the school 32 district and the authorities in charge of the nonpublic school 33 or the governing board of the charter school, as applicable, 34 that provides for the eligibility of the student, if all of the 35 -2- LSB 5427HV (3) 91 jda/jh 2/ 22

H.F. 2713 following criteria are satisfied: 1 (1) The extracurricular interscholastic athletic contest or 2 competition has not been provided by the nonpublic school or 3 the charter school during the two immediately preceding school 4 years. 5 (2) The nonpublic school or charter school has not entered 6 into an agreement under section 280.13A with another school 7 district, nonpublic school, or charter school that provides 8 for the eligibility of students enrolled in the nonpublic 9 school or charter school to participate in the extracurricular 10 interscholastic athletic contest or competition that is being 11 provided by that school district, nonpublic school, or charter 12 school. 13 b. The board of directors of a school district shall allow 14 a student who resides within a contiguous school district, and 15 who is enrolled in a nonpublic school or charter school , to 16 participate in any extracurricular interscholastic athletic 17 contest or competition that is provided by the school district 18 pursuant to the terms of an agreement between the board of 19 directors of the school district and the authorities in charge 20 of the nonpublic school or the governing board of the charter 21 school, as applicable, that provides for the eligibility of the 22 student, if all of the following criteria are satisfied: 23 (1) The extracurricular interscholastic athletic contest 24 or competition has not been provided by the nonpublic school 25 or charter school or by the student’s school district of 26 residence , during the two immediately preceding school years. 27 (2) The nonpublic school has not entered into an agreement 28 under section 280.13A with another school district, nonpublic 29 school, or charter school that provides for the eligibility of 30 students enrolled in the nonpublic school or charter school to 31 participate in the extracurricular interscholastic athletic 32 contest or competition that is being provided by that school 33 district, nonpublic school, or charter school. 34 c. If the board of directors of a school district has 35 -3- LSB 5427HV (3) 91 jda/jh 3/ 22

H.F. 2713 established a fee for the cost of a student’s participation 1 in an extracurricular interscholastic athletic contest or 2 competition, a student who is enrolled in a nonpublic school 3 or a charter school and is participating in a contest or 4 competition at a public school pursuant to paragraph “a” or 5 “b” , or the student’s parent or guardian, shall be responsible 6 for the payment of such fee. The amount of such fee shall not 7 exceed the amount of the fee the board of directors of the 8 school district has established for students who are enrolled 9 in the school district. 10 2. A student who is enrolled in a nonpublic school or a 11 charter school and is participating in a contest or competition 12 at a public school pursuant to subsection 1 , paragraph “a” or 13 “b” , shall participate under the same conditions as a student 14 who is enrolled in the school district, including meeting the 15 school district’s student code of conduct requirements. 16 3. A student who participates in an extracurricular 17 interscholastic athletic contest or competition pursuant 18 to this section shall be deemed to satisfy the residence 19 requirements for purposes of section 256.46 . 20 DIVISION IV 21 LOCAL EDUCATION AGENCY STATUS 22 Sec. 7. Section 256E.5, Code 2026, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 1A. The governing board of a charter school 25 that is approved under this section shall be designated a local 26 education agency for the purpose of receiving federal funds for 27 all attendance centers that are under the jurisdiction of the 28 governing board. 29 DIVISION V 30 CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES 31 Sec. 8. NEW SECTION . 16.163 Authority to issue charter 32 school and accredited nonpublic school facilities bonds and 33 notes. 34 The authority shall assist charter schools established 35 -4- LSB 5427HV (3) 91 jda/jh 4/ 22

H.F. 2713 pursuant to chapter 256E and accredited nonpublic schools that 1 accept payment from a parent or guardian using funds from a 2 pupil’s individual account in an education savings account fund 3 established pursuant to section 257.11B, and the authority 4 shall have all of the powers delegated to it in a chapter 28E 5 agreement by a charter school, accredited nonpublic school, 6 or private developer contracting with a charter school or an 7 accredited nonpublic school to purchase, acquire, develop, 8 reconstruct, remodel, or replace school buildings, for the 9 charter school or accredited nonpublic school, with respect 10 to the issuance or securing of bonds or notes as provided in 11 section 256J.1. 12 Sec. 9. NEW SECTION . 16.164 Charter school facilities 13 revolving loan program fund —— credit enhancement agreements. 14 1. a. A charter school facilities revolving loan program 15 fund is created within the authority to assist charter schools 16 established pursuant to chapter 256E in acquiring suitable 17 school facilities. The moneys in the charter school facilities 18 revolving loan program fund are appropriated to the authority 19 for use in the development and operation of a charter school 20 facilities revolving loan program to assist charter schools in 21 purchasing, acquiring, developing, reconstructing, remodeling, 22 or replacing school buildings. 23 b. Moneys transferred by the authority for deposit 24 in the charter school facilities revolving loan program 25 fund, moneys appropriated to the charter school facilities 26 revolving loan program, and any other moneys available to 27 and obtained or accepted by the authority for placement in 28 the charter school facilities revolving loan program fund 29 shall be deposited in the fund. Additionally, payment of 30 interest, recaptures of awards, and other repayments to the 31 charter school facilities revolving loan program fund shall 32 be deposited in the fund. Notwithstanding section 12C.7, 33 subsection 2, interest or earnings on moneys in the charter 34 school facilities revolving loan program fund shall be credited 35 -5- LSB 5427HV (3) 91 jda/jh 5/ 22

H.F. 2713 to the fund. Notwithstanding section 8.33, moneys that remain 1 unencumbered or unobligated at the end of the fiscal year shall 2 not revert but shall remain available for the same purpose in 3 the succeeding fiscal year. 4 c. The authority shall annually allocate moneys available in 5 the charter school facilities revolving loan program fund to 6 assist charter schools in purchasing, acquiring, developing, 7 reconstructing, remodeling, or replacing school buildings. 8 2. In addition to the charter school facilities revolving 9 loan program authorized pursuant to subsection 1, the authority 10 is authorized to make or enter into a liquidity or credit 11 enhancement agreement with a charter school established 12 pursuant to chapter 256E to assist the charter school in 13 purchasing, acquiring, developing, reconstructing, remodeling, 14 or replacing school buildings. 15 Sec. 10. NEW SECTION . 16.165 Accredited nonpublic school 16 facilities revolving loan program fund —— credit enhancement 17 agreements. 18 1. a. An accredited nonpublic school facilities revolving 19 loan program fund is created within the authority to assist 20 accredited nonpublic schools that accept payment from a parent 21 or guardian using funds from a pupil’s individual account in 22 an education savings account fund established pursuant to 23 section 257.11B in acquiring suitable school facilities. The 24 moneys in the accredited nonpublic school facilities revolving 25 loan program fund are appropriated to the authority for use 26 in the development and operation of an accredited nonpublic 27 school facilities revolving loan program to assist accredited 28 nonpublic schools that accept payment from a parent or guardian 29 using funds from a pupil’s individual account in an education 30 savings account fund established pursuant to section 257.11B in 31 purchasing, acquiring, developing, reconstructing, remodeling, 32 or replacing school buildings. 33 b. Moneys transferred by the authority for deposit in 34 the accredited nonpublic school facilities revolving loan 35 -6- LSB 5427HV (3) 91 jda/jh 6/ 22

H.F. 2713 program fund, moneys appropriated to the accredited nonpublic 1 school facilities revolving loan program, and any other 2 moneys available to and obtained or accepted by the authority 3 for placement in the accredited nonpublic school facilities 4 revolving loan program fund shall be deposited in the fund. 5 Additionally, payment of interest, recaptures of awards, 6 and other repayments to the accredited nonpublic school 7 facilities revolving loan program fund shall be deposited 8 in the fund. Notwithstanding section 12C.7, subsection 2, 9 interest or earnings on moneys in the accredited nonpublic 10 school facilities revolving loan program fund shall be credited 11 to the fund. Notwithstanding section 8.33, moneys that remain 12 unencumbered or unobligated at the end of the fiscal year shall 13 not revert but shall remain available for the same purpose in 14 the succeeding fiscal year. 15 c. The authority shall annually allocate moneys available 16 in the accredited nonpublic school facilities revolving loan 17 program fund to assist accredited nonpublic schools that 18 accept payment from a parent or guardian using funds from a 19 pupil’s individual account in an education savings account 20 fund established pursuant to section 257.11B in purchasing, 21 acquiring, developing, reconstructing, remodeling, or replacing 22 school buildings. 23 2. In addition to the accredited nonpublic school 24 facilities revolving loan program authorized pursuant to 25 subsection 1, the authority is authorized to make or enter into 26 a liquidity or credit enhancement agreement with an accredited 27 nonpublic school that accepts payment from a parent or guardian 28 using funds from a pupil’s individual account in an education 29 savings account fund established pursuant to section 257.11B 30 to assist the accredited nonpublic school in purchasing, 31 acquiring, developing, reconstructing, remodeling, or replacing 32 school buildings. 33 Sec. 11. NEW SECTION . 256J.1 Charter school and accredited 34 nonpublic school facilities bond program. 35 -7- LSB 5427HV (3) 91 jda/jh 7/ 22

H.F. 2713 1. As used in this section: 1 a. “Authority” means the Iowa finance authority. 2 b. “Bonds” means bonds which are payable solely as provided 3 in this section. 4 c. “School” means all of the following: 5 (1) A charter school established pursuant to chapter 256E. 6 (2) An accredited nonpublic school that accepts payment 7 from a parent or guardian using funds from a pupil’s individual 8 account in an education savings account fund established 9 pursuant to section 257.11B. 10 2. The authority shall cooperate with schools that wish to 11 participate in the creation, administration, and funding of 12 a charter school and accredited nonpublic school facilities 13 bond program to assist such schools in financing the purchase, 14 acquisition, development, reconstruction, remodeling, or 15 replacement of school buildings. 16 3. The authority may issue its bonds and notes for the 17 purpose of funding the nonrecurring cost of purchasing, 18 acquiring, developing, reconstructing, remodeling, or replacing 19 a school building for a school. 20 4. The authority may issue its bonds and notes for the 21 purposes of this section and may enter into one or more lending 22 agreements or purchase agreements with one or more bondholders 23 or noteholders containing the terms and conditions of the 24 repayment of and the security for the bonds or notes. The 25 authority and the bondholders or noteholders or a trustee 26 agent designated by the authority may enter into agreements to 27 provide for any of the following: 28 a. That the proceeds of the bonds and notes and the 29 investments of the proceeds may be received, held, and 30 disbursed by the authority or by a trustee or agent designated 31 by the authority. 32 b. That the bondholders or noteholders or a trustee or 33 agent designated by the authority may collect, invest, and 34 apply the amount payable under the loan agreements or any 35 -8- LSB 5427HV (3) 91 jda/jh 8/ 22

H.F. 2713 other instruments securing the debt obligations under the loan 1 agreements. 2 c. That the bondholders or noteholders may enforce the 3 remedies provided in the loan agreements or other instruments 4 on their own behalf without the appointment or designation of a 5 trustee. If there is a default in the principal of or interest 6 on the bonds or notes or in the performance of any agreement 7 contained in the loan agreements or other instruments, the 8 payment or performance may be enforced in accordance with the 9 loan agreement or other instrument. 10 d. Other terms and conditions as deemed necessary or 11 appropriate by the authority. 12 5. The powers granted the authority under this section are 13 in addition to other powers contained in chapter 16. All other 14 provisions of chapter 16, except section 16.28, subsection 15 4, apply to bonds or notes issued and powers granted to the 16 authority under this section, except to the extent they are 17 inconsistent with this section. 18 6. All bonds or notes issued by the authority in connection 19 with the program are exempt from taxation by this state and the 20 interest on the bonds or notes is exempt from state income tax, 21 both personal and corporate. 22 7. a. The authority may provide in the resolution, trust 23 agreement, or other instrument authorizing the issuance of its 24 bonds or notes pursuant to this section that the principal of, 25 premium, and interest on the bonds or notes are payable from 26 any of the following and may pledge the same to its bonds and 27 notes: 28 (1) From the amounts received by a charter school under 29 section 256E.8, subsection 2, paragraph “c” . 30 (2) From the amounts received by a nonpublic school under 31 section 257.11B, subsection 5. 32 (3) From the income derived from gifts and bequests made to 33 the school for such purposes. 34 (4) From the other funds or accounts established by the 35 -9- LSB 5427HV (3) 91 jda/jh 9/ 22

H.F. 2713 authority in connection with the program or the sale and 1 issuance of its bonds or notes. 2 b. No obligation created hereunder shall ever be or become 3 a charge against the state of Iowa but all such obligations, 4 including principal and interest, shall be payable solely as 5 provided in this section. 6 8. The authority may establish reserve funds to secure 7 one or more issues of its bonds or notes. The authority may 8 deposit in a reserve fund established under this subsection 9 the proceeds of the sale of its bonds or notes and other money 10 which is made available from any other source. 11 9. A pledge made in respect of bonds or notes is valid 12 and binding from the time the pledge is made. The money or 13 property so pledged and received after the pledge by the 14 authority is immediately subject to the lien of the pledge 15 without physical delivery or further act. The lien of the 16 pledge is valid and binding as against all persons having 17 claims of any kind in tort, contract, or otherwise against 18 the authority whether or not the parties have notice of the 19 lien. Neither the resolution, trust agreement, or any other 20 instrument by which a pledge is created needs to be recorded, 21 filed, or perfected under chapter 554, to be valid, binding, or 22 effective against all persons. 23 10. The members of the authority or persons executing the 24 bonds or notes are not personally liable on the bonds or notes 25 and are not subject to personal liability or accountability by 26 reason of the issuance of the bonds or notes. 27 11. The bonds or notes issued by the authority are not 28 an indebtedness or other liability of the state or of a 29 political subdivision of the state within the meaning of 30 any constitutional or statutory debt limitations, but are 31 special obligations of the authority and are payable solely as 32 described in subsection 7, paragraph “a” , to the extent that 33 the amounts are designated in the resolution, trust agreement, 34 or other instrument of the authority authorizing the issuance 35 -10- LSB 5427HV (3) 91 jda/jh 10/ 22

H.F. 2713 of the bonds or notes as being available as security for the 1 bonds or notes. The authority shall not pledge the faith or 2 credit of the state or of a political subdivision of the state 3 to the payment of any bonds or notes. The issuance of any bonds 4 or notes by the authority does not directly, indirectly, or 5 contingently obligate the state or a political subdivision of 6 the state to apply money from, or levy, or pledge any form of 7 taxation whatsoever to the payment of the bonds or notes. 8 Sec. 12. Section 422.7, subsection 2, Code 2026, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . 0k. Charter school and accredited nonpublic 11 school facilities bond program bonds pursuant to section 12 256J.1. 13 Sec. 13. CODE EDITOR DIRECTIVE. The Code editor shall 14 designate sections 16.163 through 16.165, as enacted in 15 this Act, as new sections within chapter 16, subchapter X, 16 part 6, and may redesignate the preexisting part and correct 17 internal references as necessary, including references to part 18 headnotes. 19 Sec. 14. RETROACTIVE APPLICABILITY. The following applies 20 retroactively to January 1, 2026, for tax years beginning on 21 or after that date: 22 The section of this division of this Act amending section 23 422.7. 24 DIVISION VI 25 STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD 26 CHILDREN 27 Sec. 15. Section 256C.3, subsection 4, Code 2026, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . e. (1) A school district may enter into 30 a chapter 28E agreement with a community-based provider to 31 allow the community-based provider to provide high-quality 32 instruction as part of the approved local program. 33 (2) Upon the request of a community-based provider, a 34 school district shall enter into a chapter 28E agreement with a 35 -11- LSB 5427HV (3) 91 jda/jh 11/ 22

H.F. 2713 community-based provider to allow the community-based provider 1 to provide high-quality instruction as part of the approved 2 local program. 3 (3) A chapter 28E agreement entered into pursuant to this 4 paragraph shall not limit the number of eligible students who 5 may receive high-quality instruction from a community-based 6 provider as part of the approved local program. 7 Sec. 16. NEW SECTION . 256C.7 Limitation of authority. 8 1. This chapter shall not be construed to authorize the 9 state or any political subdivision of the state to exercise 10 authority over any community-based provider or construed to 11 require a community-based provider to modify its academic 12 standards for admission or educational program in order to 13 receive payments from a school district pursuant to section 14 256C.4, subsection 1. 15 2. This chapter shall not be construed to expand the 16 authority of the state or any political subdivision of the 17 state to impose regulations upon any community-based provider 18 that are not necessary to implement this chapter. 19 3. A community-based provider that receives payments from a 20 school district pursuant to section 256C.4, subsection 1, is 21 not an agent of this state or of a political subdivision of 22 this state. 23 4. Rules adopted by the department of education to implement 24 this chapter that impose an undue burden on a community-based 25 provider are invalid. 26 5. A community-based provider that receives payments from 27 a school district pursuant to section 256C.4, subsection 1, 28 shall be given the maximum freedom possible to provide for the 29 educational needs of the community-based provider’s students, 30 consistent with state and federal law. 31 DIVISION VII 32 EDUCATION SAVINGS ACCOUNTS 33 Sec. 17. Section 257.11B, subsections 3 and 4, Code 2026, 34 are amended to read as follows: 35 -12- LSB 5427HV (3) 91 jda/jh 12/ 22

H.F. 2713 3. a. (1) On or after January 1, but on or before June 1 30, preceding the school year for which the education savings 2 account payment is requested, the parent or guardian of an 3 eligible pupil may request an education savings account payment 4 by submitting an application to the department of education. 5 (2) On or after December 1, but on or before December 20, 6 preceding the semester for which the education savings account 7 payment is requested, the parent or guardian of an eligible 8 pupil may request an education savings account payment by 9 submitting an application to the department of education. 10 b. Within thirty days following submission of an 11 application, the department of education or third-party entity 12 shall notify the parent or guardian of each pupil approved for 13 the following school year or semester and specify the amount of 14 the education savings account payment for the pupil, if known 15 at the time of the notice. As soon as practical following the 16 processing of all applications, the department of education or 17 third-party entity shall determine the number of pupils in each 18 school district approved for the school budget year and provide 19 such information to the department of management. 20 c. Education savings account payments shall only be 21 approved for one school year or one semester, as applicable, 22 and applications must be submitted annually for payments in 23 subsequent school years. 24 4. Each education savings account payment shall be equal to 25 the regular program state cost per pupil for the same school 26 budget year ; provided, however, that an education savings 27 account payment shall be equal to fifty percent of the regular 28 program state cost per pupil for the same school budget year if 29 the pupil’s parent or guardian submitted an application under 30 subsection 3, paragraph “a” , subparagraph (2) . 31 Sec. 18. Section 257.11B, subsection 6, paragraph a, Code 32 2026, is amended to read as follows: 33 a. For each pupil approved for an education savings account 34 payment, the department of education or third-party entity 35 -13- LSB 5427HV (3) 91 jda/jh 13/ 22

H.F. 2713 shall establish an individual account for that pupil in the 1 education savings account fund. The If the pupil’s parent 2 or guardian submitted an application under subsection 3, 3 paragraph “a” , subparagraph (1), the amount of the pupil’s 4 education savings account payment shall be deposited into 5 the pupil’s individual account on July 15 or thirty days 6 following submission of the application, whichever is later, 7 and such amount shall be immediately available for the payment 8 of qualified educational expenses incurred by the parent or 9 guardian for the pupil during that fiscal year using a payment 10 method authorized under subsection 5 . If the pupil’s parent or 11 guardian submitted an application under subsection 3, paragraph 12 “a” , subparagraph (2), the amount of the pupil’s education 13 savings account payment shall be deposited into the pupil’s 14 individual account within thirty days following submission of 15 the application, and such amount shall be immediately available 16 for the payment of qualified educational expenses incurred by 17 the parent or guardian for the pupil during that fiscal year 18 using a payment method authorized under subsection 5. 19 DIVISION VIII 20 INDEPENDENT ACCREDITING AGENCIES 21 Sec. 19. Section 256.11, subsection 16, Code 2026, is 22 amended by adding the following new paragraph: 23 NEW PARAGRAPH . d. (1) This subsection shall not be 24 construed to authorize the state or any political subdivision 25 of the state to exercise authority over any nonpublic school or 26 construed to require a nonpublic school to modify its academic 27 standards for admission or educational program. 28 (2) This section shall not be construed to expand the 29 authority of the state or any political subdivision of the 30 state to impose regulations upon any nonpublic school that are 31 not necessary to implement this section. 32 (3) Rules adopted by the state board of education to 33 implement this section that impose an undue burden on a 34 nonpublic school are invalid. 35 -14- LSB 5427HV (3) 91 jda/jh 14/ 22

H.F. 2713 (4) A nonpublic school shall be given the maximum freedom 1 possible to provide for the educational needs of the school’s 2 students, consistent with state and federal law. 3 DIVISION IX 4 SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL 5 REQUIREMENTS 6 Sec. 20. DEPARTMENT OF EDUCATION —— SCHEDULE OF REQUIRED 7 TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS. 8 1. The department of education shall convene and provide 9 administrative support to a task force that shall study the 10 training programs in which teachers in this state are required 11 to participate pursuant to state law and the requirements 12 associated with renewing a teaching license. 13 2. Any expense incurred by a member of the task force 14 shall be the responsibility of the individual member or the 15 respective entity represented by the member. 16 3. The task force shall submit its findings and 17 recommendations to the general assembly on or before 18 December 31, 2026. The recommendations must include specific 19 recommendations related to how to change current law to create 20 a more manageable training program schedule and licensure 21 renewal requirement schedule for teachers. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to education, including by modifying 26 provisions related to charter schools, the Iowa public 27 employees’ retirement system, financing programs for charter 28 schools and nonpublic schools administered by the Iowa finance 29 authority, the statewide voluntary preschool program for 30 four-year-old children, education savings accounts, independent 31 accrediting agencies, teacher training and licensure, and 32 making appropriations, and including applicability and 33 retroactive applicability provisions. 34 DIVISION I —— CHARTER SCHOOL FUNDING. Currently, each 35 -15- LSB 5427HV (3) 91 jda/jh 15/ 22

H.F. 2713 student enrolled in a charter school under Code chapter 256E 1 shall be counted, for state school foundation purposes, in the 2 student’s district of residence. The department of education 3 is then required to pay to the charter school in which the 4 student is enrolled an amount equal to the sum of the regular 5 program state cost per pupil for the budget year plus other 6 additional costs specified in Code section 256E.8(2)(a). This 7 division adds the teacher salary supplement state cost per 8 pupil to the amount required to be paid to the charter school. 9 This provision applies to school budget years beginning on or 10 after July 1, 2026. 11 DIVISION II —— IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM. 12 The division provides that persons employed by charter schools 13 that satisfy all applicable requirements under federal law 14 for participation in the retirement systemare employees for 15 purposes of the provisions of the Iowa public employees’ 16 retirement system (IPERS). Additionally, the division provides 17 that charter schools that satisfy all applicable requirements 18 under federal law for participation in the retirement system 19 are employers for purposes of the provisions of IPERS. 20 The bill provides that in the event of a charter school 21 closure, the assets of the charter school shall be, after 22 payroll obligations but prior to paying creditors, used to 23 satisfy any liabilities due and owing to IPERS. 24 DIVISION III —— EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC 25 CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS. The 26 division requires the board of directors of a school district 27 to allow a student who resides within the district, and 28 who is enrolled in a charter school, to participate in any 29 extracurricular interscholastic athletic contest or competition 30 that is provided by the school district pursuant to the terms 31 of an agreement between the board of directors of the school 32 district and the governing board of the charter school if the 33 extracurricular interscholastic athletic contest or competition 34 has not been provided by the charter school during the two 35 -16- LSB 5427HV (3) 91 jda/jh 16/ 22

H.F. 2713 immediately preceding school years and if the charter school 1 has not entered into an agreement under Code section 280.13A 2 (sharing interscholastic activities) with another school 3 district, nonpublic school, or charter school that provides 4 for the eligibility of students enrolled in the charter school 5 to participate in the extracurricular interscholastic athletic 6 contest or competition that is being provided by that school. 7 The division requires the board of directors of a school 8 district to allow a student who resides within a contiguous 9 school district, and who is enrolled in a charter school, to 10 participate in any extracurricular interscholastic athletic 11 contest or competition that is provided by the school district 12 pursuant to the terms of an agreement between the board of 13 directors of the school district and the governing board of 14 the charter school if the extracurricular interscholastic 15 athletic contest or competition has not been provided by the 16 charter school or by the student’s school district of residence 17 during the two immediately preceding school years and if 18 the charter school has not entered into an agreement under 19 Code section 280.13A with another school district, nonpublic 20 school, or charter school that provides for the eligibility of 21 students enrolled in the charter school to participate in the 22 extracurricular interscholastic athletic contest or competition 23 that is being provided by that school. 24 The division provides that if the board of directors of 25 a school district has established a fee for the cost of a 26 student’s participation in an extracurricular interscholastic 27 athletic contest or competition, a student who is enrolled in a 28 charter school and is participating in a contest or competition 29 at a public school pursuant to the division’s provisions, or 30 the student’s parent or guardian, shall be responsible for the 31 payment of such fee. 32 The division requires a student who is enrolled in a charter 33 school and is participating in a contest or competition at 34 a public school pursuant to the division’s provisions to 35 -17- LSB 5427HV (3) 91 jda/jh 17/ 22

H.F. 2713 participate under the same conditions as a student who is 1 enrolled in the school district, including meeting the school 2 district’s student code of conduct requirements. 3 The division provides that a student who participates in an 4 extracurricular interscholastic athletic contest or competition 5 pursuant to the division’s provisions is deemed to satisfy the 6 residence requirements for purposes of Code section 256.46 7 (rules for participation in extracurricular activities by 8 certain children). 9 DIVISION IV —— LOCAL EDUCATION AGENCY STATUS. The division 10 provides that the governing board of a charter school that is 11 approved under Code section 256E.5 (founding group-state board 12 model) is a local education agency for the purpose of receiving 13 federal funds for all attendance centers that are under the 14 jurisdiction of the governing board. 15 DIVISION V —— CHARTER SCHOOL AND NONPUBLIC SCHOOL 16 FACILITIES. The division requires the Iowa finance authority 17 (IFA) to cooperate with charter schools established pursuant to 18 Code chapter 256E and accredited nonpublic schools that accept 19 payment from a parent or guardian using funds from a pupil’s 20 individual account in an education savings account fund in the 21 creation, administration, and funding of a charter school and 22 accredited nonpublic school facilities bond program to assist 23 charter schools and accredited nonpublic schools in financing 24 the purchase, acquisition, development, reconstruction, 25 remodeling, or replacement of school buildings. The division 26 allows the IFA to issue its bonds and notes for the purpose 27 of funding the nonrecurring cost of purchasing, acquiring, 28 developing, reconstructing, remodeling, or replacing a school 29 building for a charter school or accredited nonpublic school 30 and to enter into lending agreements or purchase agreements 31 with bondholders or noteholders that contain certain specified 32 provisions. The division establishes the sources from which 33 the principal of, premium, and interest on the bonds or 34 notes are payable. The bonds or notes issued by the IFA in 35 -18- LSB 5427HV (3) 91 jda/jh 18/ 22

H.F. 2713 connection with the program are exempt from taxation by this 1 state and the interest on the bonds or notes is exempt from 2 state income tax, both personal and corporate. This provision 3 applies retroactively to January 1, 2026, for tax years 4 beginning on or after that date. 5 The division establishes a charter school facilities 6 revolving loan program fund and an accredited nonpublic school 7 facilities revolving loan program fund within the IFA to assist 8 charter schools and accredited nonpublic schools that accept 9 payment from a parent or guardian using funds from a pupil’s 10 individual account in an education savings account fund in 11 acquiring suitable school facilities. The moneys in the funds 12 are appropriated to the IFA for use in the development and 13 operation of a charter school facilities revolving loan program 14 and an accredited nonpublic school facilities revolving loan 15 program to assist charter schools and accredited nonpublic 16 schools in purchasing, acquiring, developing, reconstructing, 17 remodeling, or replacing school buildings. The division also 18 allows the IFA to make or enter into a liquidity or credit 19 enhancement agreement with a charter school or an accredited 20 nonpublic school to assist the charter school or accredited 21 nonpublic school in purchasing, acquiring, developing, 22 reconstructing, remodeling, or replacing school buildings. 23 DIVISION VI —— STATEWIDE VOLUNTARY PRESCHOOL PROGRAM 24 FOR FOUR-YEAR-OLD CHILDREN. The division authorizes school 25 districts to enter into a Code chapter 28E agreement with a 26 community-based provider allowing the community-based provider 27 to provide instruction as part of the approved local program, 28 and the division requires school districts to enter into such 29 an agreement upon the request of a community-based provider. 30 Additionally, the division prohibits such Code chapter 28E 31 agreements from limiting the number of eligible students who 32 may receive instruction from a community-based provider as part 33 of the approved local program. 34 The division prohibits Code chapter 256C (statewide 35 -19- LSB 5427HV (3) 91 jda/jh 19/ 22