House Study Bill 735 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON WHEELER) 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 four-year-old children, education savings accounts, the 6 school start date, independent accrediting agencies, teacher 7 training and licensure, and making appropriations, and 8 including applicability and retroactive applicability 9 provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 TLSB 5427YC (3) 91 jda/jh

H.F. _____ 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 school 26 established pursuant to chapter 256E. 27 Sec. 4. Section 97B.1A, subsection 9, paragraph a, Code 28 2026, is amended to read as follows: 29 a. “Employer” means the state of Iowa, the counties, 30 municipalities, agencies, public school districts, 31 charter schools established pursuant to chapter 256E, all 32 political subdivisions, and all of their departments and 33 instrumentalities, including area agencies on aging, other than 34 those employing persons as specified in subsection 8 , paragraph 35 -1- LSB 5427YC (3) 91 jda/jh 1/ 22

H.F. _____ “b” , subparagraph (7), and joint planning commissions created 1 under chapter 28E or 28I . 2 DIVISION III 3 EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR 4 COMPETITIONS PROVIDED BY PUBLIC SCHOOLS 5 Sec. 5. Section 280.13D, Code 2026, is amended to read as 6 follows: 7 280.13D Participation in extracurricular interscholastic 8 athletic contests or competitions provided by public schools. 9 1. a. The board of directors of a school district shall 10 allow a student who resides within the school district, and 11 who is enrolled in a nonpublic school or a charter school 12 established pursuant to chapter 256E , to participate in any 13 extracurricular interscholastic athletic contest or competition 14 that is provided by the school district pursuant to the terms 15 of an agreement between the board of directors of the school 16 district and the authorities in charge of the nonpublic school 17 or the governing board of the charter school, as applicable, 18 that provides for the eligibility of the student, if all of the 19 following criteria are satisfied: 20 (1) The extracurricular interscholastic athletic contest or 21 competition has not been provided by the nonpublic school or 22 the charter school during the two immediately preceding school 23 years. 24 (2) The nonpublic school or charter school has not entered 25 into an agreement under section 280.13A with another school 26 district, nonpublic school, or charter school that provides 27 for the eligibility of students enrolled in the nonpublic 28 school or charter school to participate in the extracurricular 29 interscholastic athletic contest or competition that is being 30 provided by that school district, nonpublic school, or charter 31 school. 32 b. The board of directors of a school district shall allow 33 a student who resides within a contiguous school district, and 34 who is enrolled in a nonpublic school or charter school , to 35 -2- LSB 5427YC (3) 91 jda/jh 2/ 22

H.F. _____ participate in any extracurricular interscholastic athletic 1 contest or competition that is provided by the school district 2 pursuant to the terms of an agreement between the board of 3 directors of the school district and the authorities in charge 4 of the nonpublic school or the governing board of the charter 5 school, as applicable, that provides for the eligibility of the 6 student, if all of the following criteria are satisfied: 7 (1) The extracurricular interscholastic athletic contest 8 or competition has not been provided by the nonpublic school 9 or charter school or by the student’s school district of 10 residence , during the two immediately preceding school years. 11 (2) The nonpublic school has not entered into an agreement 12 under section 280.13A with another school district, nonpublic 13 school, or charter school that provides for the eligibility of 14 students enrolled in the nonpublic school or charter school to 15 participate in the extracurricular interscholastic athletic 16 contest or competition that is being provided by that school 17 district, nonpublic school, or charter school. 18 c. If the board of directors of a school district has 19 established a fee for the cost of a student’s participation 20 in an extracurricular interscholastic athletic contest or 21 competition, a student who is enrolled in a nonpublic school 22 or a charter school and is participating in a contest or 23 competition at a public school pursuant to paragraph “a” or 24 “b” , or the student’s parent or guardian, shall be responsible 25 for the payment of such fee. The amount of such fee shall not 26 exceed the amount of the fee the board of directors of the 27 school district has established for students who are enrolled 28 in the school district. 29 2. A student who is enrolled in a nonpublic school or a 30 charter school and is participating in a contest or competition 31 at a public school pursuant to subsection 1 , paragraph “a” or 32 “b” , shall participate under the same conditions as a student 33 who is enrolled in the school district, including meeting the 34 school district’s student code of conduct requirements. 35 -3- LSB 5427YC (3) 91 jda/jh 3/ 22

H.F. _____ 3. A student who participates in an extracurricular 1 interscholastic athletic contest or competition pursuant 2 to this section shall be deemed to satisfy the residence 3 requirements for purposes of section 256.46 . 4 DIVISION IV 5 LOCAL EDUCATION AGENCY STATUS 6 Sec. 6. Section 256E.5, Code 2026, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 1A. The governing board of a charter school 9 that is approved under this section shall be designated a local 10 education agency for the purpose of receiving federal funds for 11 all attendance centers that are under the jurisdiction of the 12 governing board. 13 DIVISION V 14 CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES 15 Sec. 7. NEW SECTION . 16.163 Authority to issue charter 16 school and accredited nonpublic school facilities bonds and 17 notes. 18 The authority shall assist charter schools established 19 pursuant to chapter 256E and accredited nonpublic schools that 20 accept payment from a parent or guardian using funds from a 21 pupil’s individual account in an education savings account fund 22 established pursuant to section 257.11B, and the authority 23 shall have all of the powers delegated to it in a chapter 28E 24 agreement by a charter school, accredited nonpublic school, 25 or private developer contracting with a charter school or an 26 accredited nonpublic school to purchase, acquire, develop, 27 reconstruct, remodel, or replace school buildings, for the 28 charter school or accredited nonpublic school, with respect 29 to the issuance or securing of bonds or notes as provided in 30 section 256J.1. 31 Sec. 8. NEW SECTION . 16.164 Charter school facilities 32 revolving loan program fund —— credit enhancement agreements. 33 1. a. A charter school facilities revolving loan program 34 fund is created within the authority to assist charter schools 35 -4- LSB 5427YC (3) 91 jda/jh 4/ 22

H.F. _____ established pursuant to chapter 256E in acquiring suitable 1 school facilities. The moneys in the charter school facilities 2 revolving loan program fund are appropriated to the authority 3 for use in the development and operation of a charter school 4 facilities revolving loan program to assist charter schools in 5 purchasing, acquiring, developing, reconstructing, remodeling, 6 or replacing school buildings. 7 b. Moneys transferred by the authority for deposit 8 in the charter school facilities revolving loan program 9 fund, moneys appropriated to the charter school facilities 10 revolving loan program, and any other moneys available to 11 and obtained or accepted by the authority for placement in 12 the charter school facilities revolving loan program fund 13 shall be deposited in the fund. Additionally, payment of 14 interest, recaptures of awards, and other repayments to the 15 charter school facilities revolving loan program fund shall 16 be deposited in the fund. Notwithstanding section 12C.7, 17 subsection 2, interest or earnings on moneys in the charter 18 school facilities revolving loan program fund shall be credited 19 to the fund. Notwithstanding section 8.33, moneys that remain 20 unencumbered or unobligated at the end of the fiscal year shall 21 not revert but shall remain available for the same purpose in 22 the succeeding fiscal year. 23 c. The authority shall annually allocate moneys available in 24 the charter school facilities revolving loan program fund to 25 assist charter schools in purchasing, acquiring, developing, 26 reconstructing, remodeling, or replacing school buildings. 27 2. In addition to the charter school facilities revolving 28 loan program authorized pursuant to subsection 1, the authority 29 is authorized to make or enter into a liquidity or credit 30 enhancement agreement with a charter school established 31 pursuant to chapter 256E to assist the charter school in 32 purchasing, acquiring, developing, reconstructing, remodeling, 33 or replacing school buildings. 34 Sec. 9. NEW SECTION . 16.165 Accredited nonpublic school 35 -5- LSB 5427YC (3) 91 jda/jh 5/ 22

H.F. _____ facilities revolving loan program fund —— credit enhancement 1 agreements. 2 1. a. An accredited nonpublic school facilities revolving 3 loan program fund is created within the authority to assist 4 accredited nonpublic schools that accept payment from a parent 5 or guardian using funds from a pupil’s individual account in 6 an education savings account fund established pursuant to 7 section 257.11B in acquiring suitable school facilities. The 8 moneys in the accredited nonpublic school facilities revolving 9 loan program fund are appropriated to the authority for use 10 in the development and operation of an accredited nonpublic 11 school facilities revolving loan program to assist accredited 12 nonpublic schools that accept payment from a parent or guardian 13 using funds from a pupil’s individual account in an education 14 savings account fund established pursuant to section 257.11B in 15 purchasing, acquiring, developing, reconstructing, remodeling, 16 or replacing school buildings. 17 b. Moneys transferred by the authority for deposit in 18 the accredited nonpublic school facilities revolving loan 19 program fund, moneys appropriated to the accredited nonpublic 20 school facilities revolving loan program, and any other 21 moneys available to and obtained or accepted by the authority 22 for placement in the accredited nonpublic school facilities 23 revolving loan program fund shall be deposited in the fund. 24 Additionally, payment of interest, recaptures of awards, 25 and other repayments to the accredited nonpublic school 26 facilities revolving loan program fund shall be deposited 27 in the fund. Notwithstanding section 12C.7, subsection 2, 28 interest or earnings on moneys in the accredited nonpublic 29 school facilities revolving loan program fund shall be credited 30 to the fund. Notwithstanding section 8.33, moneys that remain 31 unencumbered or unobligated at the end of the fiscal year shall 32 not revert but shall remain available for the same purpose in 33 the succeeding fiscal year. 34 c. The authority shall annually allocate moneys available 35 -6- LSB 5427YC (3) 91 jda/jh 6/ 22

H.F. _____ in the accredited nonpublic school facilities revolving loan 1 program fund to assist accredited nonpublic schools that 2 accept payment from a parent or guardian using funds from a 3 pupil’s individual account in an education savings account 4 fund established pursuant to section 257.11B in purchasing, 5 acquiring, developing, reconstructing, remodeling, or replacing 6 school buildings. 7 2. In addition to the accredited nonpublic school 8 facilities revolving loan program authorized pursuant to 9 subsection 1, the authority is authorized to make or enter into 10 a liquidity or credit enhancement agreement with an accredited 11 nonpublic school that accepts payment from a parent or guardian 12 using funds from a pupil’s individual account in an education 13 savings account fund established pursuant to section 257.11B 14 to assist the accredited nonpublic school in purchasing, 15 acquiring, developing, reconstructing, remodeling, or replacing 16 school buildings. 17 Sec. 10. NEW SECTION . 256J.1 Charter school and accredited 18 nonpublic school facilities bond program. 19 1. As used in this section: 20 a. “Authority” means the Iowa finance authority. 21 b. “Bonds” means bonds which are payable solely as provided 22 in this section. 23 c. “School” means all of the following: 24 (1) A charter school established pursuant to chapter 256E. 25 (2) An accredited nonpublic school that accepts payment 26 from a parent or guardian using funds from a pupil’s individual 27 account in an education savings account fund established 28 pursuant to section 257.11B. 29 2. The authority shall cooperate with schools that wish to 30 participate in the creation, administration, and funding of 31 a charter school and accredited nonpublic school facilities 32 bond program to assist such schools in financing the purchase, 33 acquisition, development, reconstruction, remodeling, or 34 replacement of school buildings. 35 -7- LSB 5427YC (3) 91 jda/jh 7/ 22

H.F. _____ 3. The authority may issue its bonds and notes for the 1 purpose of funding the nonrecurring cost of purchasing, 2 acquiring, developing, reconstructing, remodeling, or replacing 3 a school building for a school. 4 4. The authority may issue its bonds and notes for the 5 purposes of this section and may enter into one or more lending 6 agreements or purchase agreements with one or more bondholders 7 or noteholders containing the terms and conditions of the 8 repayment of and the security for the bonds or notes. The 9 authority and the bondholders or noteholders or a trustee 10 agent designated by the authority may enter into agreements to 11 provide for any of the following: 12 a. That the proceeds of the bonds and notes and the 13 investments of the proceeds may be received, held, and 14 disbursed by the authority or by a trustee or agent designated 15 by the authority. 16 b. That the bondholders or noteholders or a trustee or 17 agent designated by the authority may collect, invest, and 18 apply the amount payable under the loan agreements or any 19 other instruments securing the debt obligations under the loan 20 agreements. 21 c. That the bondholders or noteholders may enforce the 22 remedies provided in the loan agreements or other instruments 23 on their own behalf without the appointment or designation of a 24 trustee. If there is a default in the principal of or interest 25 on the bonds or notes or in the performance of any agreement 26 contained in the loan agreements or other instruments, the 27 payment or performance may be enforced in accordance with the 28 loan agreement or other instrument. 29 d. Other terms and conditions as deemed necessary or 30 appropriate by the authority. 31 5. The powers granted the authority under this section are 32 in addition to other powers contained in chapter 16. All other 33 provisions of chapter 16, except section 16.28, subsection 34 4, apply to bonds or notes issued and powers granted to the 35 -8- LSB 5427YC (3) 91 jda/jh 8/ 22

H.F. _____ authority under this section, except to the extent they are 1 inconsistent with this section. 2 6. All bonds or notes issued by the authority in connection 3 with the program are exempt from taxation by this state and the 4 interest on the bonds or notes is exempt from state income tax, 5 both personal and corporate. 6 7. a. The authority may provide in the resolution, trust 7 agreement, or other instrument authorizing the issuance of its 8 bonds or notes pursuant to this section that the principal of, 9 premium, and interest on the bonds or notes are payable from 10 any of the following and may pledge the same to its bonds and 11 notes: 12 (1) From the amounts received by a charter school under 13 section 256E.8, subsection 2, paragraph “c” . 14 (2) From the amounts received by a nonpublic school under 15 section 257.11B, subsection 5. 16 (3) From the income derived from gifts and bequests made to 17 the school for such purposes. 18 (4) From the other funds or accounts established by the 19 authority in connection with the program or the sale and 20 issuance of its bonds or notes. 21 b. No obligation created hereunder shall ever be or become 22 a charge against the state of Iowa but all such obligations, 23 including principal and interest, shall be payable solely as 24 provided in this section. 25 8. The authority may establish reserve funds to secure 26 one or more issues of its bonds or notes. The authority may 27 deposit in a reserve fund established under this subsection 28 the proceeds of the sale of its bonds or notes and other money 29 which is made available from any other source. 30 9. A pledge made in respect of bonds or notes is valid 31 and binding from the time the pledge is made. The money or 32 property so pledged and received after the pledge by the 33 authority is immediately subject to the lien of the pledge 34 without physical delivery or further act. The lien of the 35 -9- LSB 5427YC (3) 91 jda/jh 9/ 22

H.F. _____ pledge is valid and binding as against all persons having 1 claims of any kind in tort, contract, or otherwise against 2 the authority whether or not the parties have notice of the 3 lien. Neither the resolution, trust agreement, or any other 4 instrument by which a pledge is created needs to be recorded, 5 filed, or perfected under chapter 554, to be valid, binding, or 6 effective against all persons. 7 10. The members of the authority or persons executing the 8 bonds or notes are not personally liable on the bonds or notes 9 and are not subject to personal liability or accountability by 10 reason of the issuance of the bonds or notes. 11 11. The bonds or notes issued by the authority are not 12 an indebtedness or other liability of the state or of a 13 political subdivision of the state within the meaning of 14 any constitutional or statutory debt limitations, but are 15 special obligations of the authority and are payable solely as 16 described in subsection 7, paragraph “a” , to the extent that 17 the amounts are designated in the resolution, trust agreement, 18 or other instrument of the authority authorizing the issuance 19 of the bonds or notes as being available as security for the 20 bonds or notes. The authority shall not pledge the faith or 21 credit of the state or of a political subdivision of the state 22 to the payment of any bonds or notes. The issuance of any bonds 23 or notes by the authority does not directly, indirectly, or 24 contingently obligate the state or a political subdivision of 25 the state to apply money from, or levy, or pledge any form of 26 taxation whatsoever to the payment of the bonds or notes. 27 Sec. 11. Section 422.7, subsection 2, Code 2026, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . 0k. Charter school and accredited nonpublic 30 school facilities bond program bonds pursuant to section 31 256J.1. 32 Sec. 12. CODE EDITOR DIRECTIVE. The Code editor shall 33 designate sections 16.163 through 16.165, as enacted in 34 this Act, as new sections within chapter 16, subchapter X, 35 -10- LSB 5427YC (3) 91 jda/jh 10/ 22

H.F. _____ part 6, and may redesignate the preexisting part and correct 1 internal references as necessary, including references to part 2 headnotes. 3 Sec. 13. RETROACTIVE APPLICABILITY. The following applies 4 retroactively to January 1, 2026, for tax years beginning on 5 or after that date: 6 The section of this division of this Act amending section 7 422.7. 8 DIVISION VI 9 STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD 10 CHILDREN 11 Sec. 14. Section 256C.3, subsection 4, Code 2026, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . e. (1) A school district may enter into 14 a chapter 28E agreement with a community-based provider to 15 allow the community-based provider to provide high-quality 16 instruction as part of the approved local program. 17 (2) Upon the request of a community-based provider, a 18 school district shall enter into a chapter 28E agreement with a 19 community-based provider to allow the community-based provider 20 to provide high-quality instruction as part of the approved 21 local program. 22 (3) A chapter 28E agreement entered into pursuant to this 23 paragraph shall not limit the number of eligible students who 24 may receive high-quality instruction from a community-based 25 provider as part of the approved local program. 26 Sec. 15. NEW SECTION . 256C.7 Limitation of authority. 27 1. This chapter shall not be construed to authorize the 28 state or any political subdivision of the state to exercise 29 authority over any community-based provider or construed to 30 require a community-based provider to modify its academic 31 standards for admission or educational program in order to 32 receive payments from a school district pursuant to section 33 256C.4, subsection 1. 34 2. This chapter shall not be construed to expand the 35 -11- LSB 5427YC (3) 91 jda/jh 11/ 22

H.F. _____ authority of the state or any political subdivision of the 1 state to impose regulations upon any community-based provider 2 that are not necessary to implement this chapter. 3 3. A community-based provider that receives payments from a 4 school district pursuant to section 256C.4, subsection 1, is 5 not an agent of this state or of a political subdivision of 6 this state. 7 4. Rules adopted by the department of education to implement 8 this chapter that impose an undue burden on a community-based 9 provider are invalid. 10 5. A community-based provider that receives payments from 11 a school district pursuant to section 256C.4, subsection 1, 12 shall be given the maximum freedom possible to provide for the 13 educational needs of the community-based provider’s students, 14 consistent with state and federal law. 15 DIVISION VII 16 EDUCATION SAVINGS ACCOUNTS 17 Sec. 16. Section 257.11B, subsections 3 and 4, Code 2026, 18 are amended to read as follows: 19 3. a. (1) On or after January 1, but on or before June 20 30, preceding the school year for which the education savings 21 account payment is requested, the parent or guardian of an 22 eligible pupil may request an education savings account payment 23 by submitting an application to the department of education. 24 (2) On or after December 1, but on or before December 20, 25 preceding the semester for which the education savings account 26 payment is requested, the parent or guardian of an eligible 27 pupil may request an education savings account payment by 28 submitting an application to the department of education. 29 b. Within thirty days following submission of an 30 application, the department of education or third-party entity 31 shall notify the parent or guardian of each pupil approved for 32 the following school year or semester and specify the amount of 33 the education savings account payment for the pupil, if known 34 at the time of the notice. As soon as practical following the 35 -12- LSB 5427YC (3) 91 jda/jh 12/ 22

H.F. _____ processing of all applications, the department of education or 1 third-party entity shall determine the number of pupils in each 2 school district approved for the school budget year and provide 3 such information to the department of management. 4 c. Education savings account payments shall only be 5 approved for one school year or one semester, as applicable, 6 and applications must be submitted annually for payments in 7 subsequent school years. 8 4. Each education savings account payment shall be equal to 9 the regular program state cost per pupil for the same school 10 budget year ; provided, however, that an education savings 11 account payment shall be equal to fifty percent of the regular 12 program state cost per pupil for the same school budget year if 13 the pupil’s parent or guardian submitted an application under 14 subsection 3, paragraph “a” , subparagraph (2) . 15 Sec. 17. Section 257.11B, subsection 6, paragraph a, Code 16 2026, is amended to read as follows: 17 a. For each pupil approved for an education savings account 18 payment, the department of education or third-party entity 19 shall establish an individual account for that pupil in the 20 education savings account fund. The If the pupil’s parent 21 or guardian submitted an application under subsection 3, 22 paragraph “a” , subparagraph (1), the amount of the pupil’s 23 education savings account payment shall be deposited into 24 the pupil’s individual account on July 15 or thirty days 25 following submission of the application, whichever is later, 26 and such amount shall be immediately available for the payment 27 of qualified educational expenses incurred by the parent or 28 guardian for the pupil during that fiscal year using a payment 29 method authorized under subsection 5 . If the pupil’s parent or 30 guardian submitted an application under subsection 3, paragraph 31 “a” , subparagraph (2), the amount of the pupil’s education 32 savings account payment shall be deposited into the pupil’s 33 individual account within thirty days following submission of 34 the application, and such amount shall be immediately available 35 -13- LSB 5427YC (3) 91 jda/jh 13/ 22

H.F. _____ for the payment of qualified educational expenses incurred by 1 the parent or guardian for the pupil during that fiscal year 2 using a payment method authorized under subsection 5. 3 DIVISION VIII 4 SCHOOL START DATE 5 Sec. 18. Section 279.10, subsection 1, Code 2026, is amended 6 to read as follows: 7 1. The school year for each school district and accredited 8 nonpublic school shall begin on July 1 and the school calendar 9 shall begin no sooner than August 23 the Monday immediately 10 preceding the last Monday in August and no later than the 11 first Monday in December. The school calendar shall include 12 not less than one hundred eighty days or one thousand eighty 13 hours of instruction during the calendar year, of which not 14 more than five days or thirty hours of instruction may be 15 delivered primarily over the internet except as otherwise 16 provided in section 256.43 or in rules adopted by the state 17 board of education pursuant to section 256.7, subsection 32 . 18 The board of directors of a school district and the authorities 19 in charge of an accredited nonpublic school shall determine the 20 school start date for the school calendar in accordance with 21 this subsection and shall set the number of days or hours of 22 required attendance for the school year as provided in section 23 299.1, subsection 2 , but the board of directors of a school 24 district shall hold a public hearing on any proposed school 25 calendar prior to adopting the school calendar. If the board 26 of directors of a district or the authorities in charge of an 27 accredited nonpublic school extends the school calendar because 28 inclement weather caused the school district or accredited 29 nonpublic school to temporarily close during the regular school 30 calendar, the school district or accredited nonpublic school 31 may excuse a graduating senior who has met district or school 32 requirements for graduation from attendance during the extended 33 school calendar. A school corporation may begin employment 34 of personnel for in-service training and development purposes 35 -14- LSB 5427YC (3) 91 jda/jh 14/ 22

H.F. _____ before the date to begin elementary and secondary school. 1 DIVISION IX 2 INDEPENDENT ACCREDITING AGENCIES 3 Sec. 19. Section 256.11, subsection 16, Code 2026, is 4 amended by adding the following new paragraph: 5 NEW PARAGRAPH . d. (1) This subsection shall not be 6 construed to authorize the state or any political subdivision 7 of the state to exercise authority over any nonpublic school or 8 construed to require a nonpublic school to modify its academic 9 standards for admission or educational program. 10 (2) This section shall not be construed to expand the 11 authority of the state or any political subdivision of the 12 state to impose regulations upon any nonpublic school that are 13 not necessary to implement this section. 14 (3) Rules adopted by the state board of education to 15 implement this section that impose an undue burden on a 16 nonpublic school are invalid. 17 (4) A nonpublic school shall be given the maximum freedom 18 possible to provide for the educational needs of the school’s 19 students, consistent with state and federal law. 20 DIVISION X 21 SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL 22 REQUIREMENTS 23 Sec. 20. DEPARTMENT OF EDUCATION —— SCHEDULE OF REQUIRED 24 TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS. 25 1. The department of education shall convene and provide 26 administrative support to a task force that shall study the 27 training programs in which teachers in this state are required 28 to participate pursuant to state law and the requirements 29 associated with renewing a teaching license. 30 2. Any expense incurred by a member of the task force 31 shall be the responsibility of the individual member or the 32 respective entity represented by the member. 33 3. The task force shall submit its findings and 34 recommendations to the general assembly on or before 35 -15- LSB 5427YC (3) 91 jda/jh 15/ 22

H.F. _____ December 31, 2026. The recommendations must include specific 1 recommendations related to how to change current law to create 2 a more manageable training program schedule and licensure 3 renewal requirement schedule for teachers. 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 education, including by modifying 8 provisions related to charter schools, the Iowa public 9 employees’ retirement system, financing programs for charter 10 schools and nonpublic schools administered by the Iowa finance 11 authority, the statewide voluntary preschool program for 12 four-year-old children, education savings accounts, the school 13 start date, independent accrediting agencies, teacher training 14 and licensure, and making appropriations, and including 15 applicability and retroactive applicability provisions. 16 DIVISION I —— CHARTER SCHOOL FUNDING. Currently, each 17 student enrolled in a charter school under Code chapter 256E 18 shall be counted, for state school foundation purposes, in the 19 student’s district of residence. The department of education 20 is then required to pay to the charter school in which the 21 student is enrolled an amount equal to the sum of the regular 22 program state cost per pupil for the budget year plus other 23 additional costs specified in Code section 256E.8(2)(a). This 24 division adds the teacher salary supplement state cost per 25 pupil to the amount required to be paid to the charter school. 26 This provision applies to school budget years beginning on or 27 after July 1, 2026. 28 DIVISION II —— IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM. 29 The division provides that persons employed by charter schools 30 are employees for purposes of the provisions of the Iowa 31 public employees’ retirement system (IPERS). Additionally, 32 the division provides that charter schools are employers for 33 purposes of the provisions of IPERS. 34 DIVISION III —— EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC 35 -16- LSB 5427YC (3) 91 jda/jh 16/ 22

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

H.F. _____ a school district has established a fee for the cost of a 1 student’s participation in an extracurricular interscholastic 2 athletic contest or competition, a student who is enrolled in a 3 charter school and is participating in a contest or competition 4 at a public school pursuant to the division’s provisions, or 5 the student’s parent or guardian, shall be responsible for the 6 payment of such fee. 7 The division requires a student who is enrolled in a charter 8 school and is participating in a contest or competition at 9 a public school pursuant to the division’s provisions to 10 participate under the same conditions as a student who is 11 enrolled in the school district, including meeting the school 12 district’s student code of conduct requirements. 13 The division provides that a student who participates in an 14 extracurricular interscholastic athletic contest or competition 15 pursuant to the division’s provisions is deemed to satisfy the 16 residence requirements for purposes of Code section 256.46 17 (rules for participation in extracurricular activities by 18 certain children). 19 DIVISION IV —— LOCAL EDUCATION AGENCY STATUS. The division 20 provides that the governing board of a charter school that is 21 approved under Code section 256E.5 (founding group-state board 22 model) is a local education agency for the purpose of receiving 23 federal funds for all attendance centers that are under the 24 jurisdiction of the governing board. 25 DIVISION V —— CHARTER SCHOOL AND NONPUBLIC SCHOOL 26 FACILITIES. The division requires the Iowa finance authority 27 (IFA) to cooperate with charter schools established pursuant to 28 Code chapter 256E and accredited nonpublic schools that accept 29 payment from a parent or guardian using funds from a pupil’s 30 individual account in an education savings account fund in the 31 creation, administration, and funding of a charter school and 32 accredited nonpublic school facilities bond program to assist 33 charter schools and accredited nonpublic schools in financing 34 the purchase, acquisition, development, reconstruction, 35 -18- LSB 5427YC (3) 91 jda/jh 18/ 22

H.F. _____ remodeling, or replacement of school buildings. The division 1 allows the IFA to issue its bonds and notes for the purpose 2 of funding the nonrecurring cost of purchasing, acquiring, 3 developing, reconstructing, remodeling, or replacing a school 4 building for a charter school or accredited nonpublic school 5 and to enter into lending agreements or purchase agreements 6 with bondholders or noteholders that contain certain specified 7 provisions. The division establishes the sources from which 8 the principal of, premium, and interest on the bonds or 9 notes are payable. The bonds or notes issued by the IFA in 10 connection with the program are exempt from taxation by this 11 state and the interest on the bonds or notes is exempt from 12 state income tax, both personal and corporate. This provision 13 applies retroactively to January 1, 2026, for tax years 14 beginning on or after that date. 15 The division establishes a charter school facilities 16 revolving loan program fund and an accredited nonpublic school 17 facilities revolving loan program fund within the IFA to assist 18 charter schools 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 21 acquiring suitable school facilities. The moneys in the funds 22 are appropriated to the IFA for use in the development and 23 operation of a charter school facilities revolving loan program 24 and an accredited nonpublic school facilities revolving loan 25 program to assist charter schools and accredited nonpublic 26 schools in purchasing, acquiring, developing, reconstructing, 27 remodeling, or replacing school buildings. The division also 28 allows the IFA to make or enter into a liquidity or credit 29 enhancement agreement with a charter school or an accredited 30 nonpublic school to assist the charter school or accredited 31 nonpublic school in purchasing, acquiring, developing, 32 reconstructing, remodeling, or replacing school buildings. 33 DIVISION VI —— STATEWIDE VOLUNTARY PRESCHOOL PROGRAM 34 FOR FOUR-YEAR-OLD CHILDREN. The division authorizes school 35 -19- LSB 5427YC (3) 91 jda/jh 19/ 22