SF 2175 (LSB 5427XS (1) 91)

SENATE FILE 2175

BY  GREEN

A BILL FOR

An Act relating to education, including by modifying provisions related to charter schools, the Iowa public employees’ retirement system, financing programs for charter schools and nonpublic schools administered by the Iowa finance authority, the statewide voluntary preschool program for four-year-old children, education savings accounts, the school start date, independent accrediting agencies, teacher training and licensure, and making appropriations, and including applicability and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
CHARTER SCHOOL FUNDING

    Section 1.  Section 256E.8, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  The charter school in which the student is enrolled shall receive under paragraph “c” an amount equal to the sum of the regular program state cost per pupil for the budget year plus the teacher leadership supplement state cost per pupil, the teacher salary supplement state cost per pupil, the professional development supplement state cost per pupil, and the early intervention supplement state cost per pupil for the budget year as provided in section 257.9 plus any moneys that would be due to the school district of residence for the student as a result of the non-English speaking weighting under section 280.4, subsection 3, for the budget year multiplied by the state cost per pupil for the budget year. If a student is an eligible pupil under section 261E.6, the charter school shall pay the tuition reimbursement amount to an eligible postsecondary institution as provided in section 261E.7.
    Sec. 2.  APPLICABILITY.  This division of this Act applies to school budget years beginning on or after July 1, 2026.
DIVISION II
IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

    Sec. 3.  Section 97B.1A, subsection 8, paragraph a, Code 2026, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (13)  Persons employed by a charter school established pursuant to chapter 256E.
    Sec. 4.  Section 97B.1A, subsection 9, paragraph a, Code 2026, is amended to read as follows:
   a.  “Employer” means the state of Iowa, the counties, municipalities, agencies, public school districts, charter schools established pursuant to chapter 256E, all political subdivisions, and all of their departments and instrumentalities, including area agencies on aging, other than those employing persons as specified in subsection 8, paragraph “b”, subparagraph (7), and joint planning commissions created under chapter 28E or 28I.
DIVISION III
EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS

    Sec. 5.  Section 280.13D, Code 2026, is amended to read as follows:
   280.13D  Participation in extracurricular interscholastic athletic contests or competitions provided by public schools.
   1.  a.  The board of directors of a school district shall allow a student who resides within the school district, and who is enrolled in a nonpublic school or a charter school established pursuant to chapter 256E, to participate in any extracurricular interscholastic athletic contest or competition that is provided by the school district pursuant to the terms of an agreement between the board of directors of the school district and the authorities in charge of the nonpublic school or the governing board of the charter school, as applicable, that provides for the eligibility of the student, if all of the following criteria are satisfied:
   (1)  The extracurricular interscholastic athletic contest or competition has not been provided by the nonpublic school or the charter school during the two immediately preceding school years.
   (2)  The nonpublic school or charter school has not entered into an agreement under section 280.13A with another school district, nonpublic school, or charter school that provides for the eligibility of students enrolled in the nonpublic school or charter school to participate in the extracurricular interscholastic athletic contest or competition that is being provided by that school district, nonpublic school, or charter school.
   b.  The board of directors of a school district shall allow a student who resides within a contiguous school district, and who is enrolled in a nonpublic school or charter school, to participate in any extracurricular interscholastic athletic contest or competition that is provided by the school district pursuant to the terms of an agreement between the board of directors of the school district and the authorities in charge of the nonpublic school or the governing board of the charter school, as applicable, that provides for the eligibility of the student, if all of the following criteria are satisfied:
   (1)  The extracurricular interscholastic athletic contest or competition has not been provided by the nonpublic school or charter school or by the student’s school district of residence, during the two immediately preceding school years.
   (2)  The nonpublic school has not entered into an agreement under section 280.13A with another school district, nonpublic school, or charter school that provides for the eligibility of students enrolled in the nonpublic school or charter school to participate in the extracurricular interscholastic athletic contest or competition that is being provided by that school district, nonpublic school, or charter school.
   c.  If the board of directors of a school district has established a fee for the cost of a student’s participation in an extracurricular interscholastic athletic contest or competition, a student who is enrolled in a nonpublic school or a charter school and is participating in a contest or competition at a public school pursuant to paragraph “a” or “b”, or the student’s parent or guardian, shall be responsible for the payment of such fee. The amount of such fee shall not exceed the amount of the fee the board of directors of the school district has established for students who are enrolled in the school district.
   2.  A student who is enrolled in a nonpublic school or a charter school and is participating in a contest or competition at a public school pursuant to subsection 1, paragraph “a” or “b”, shall participate under the same conditions as a student who is enrolled in the school district, including meeting the school district’s student code of conduct requirements.
   3.  A student who participates in an extracurricular interscholastic athletic contest or competition pursuant to this section shall be deemed to satisfy the residence requirements for purposes of section 256.46.
DIVISION IV
LOCAL EDUCATION AGENCY STATUS

    Sec. 6.  Section 256E.5, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  The governing board of a charter school that is approved under this section shall be designated a local education agency for the purpose of receiving federal funds for all attendance centers that are under the jurisdiction of the governing board.
DIVISION V
CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES

    Sec. 7.  NEW SECTION.  16.163  Authority to issue charter school and accredited nonpublic school facilities bonds and notes.
   The authority shall assist charter schools established pursuant to chapter 256E and accredited nonpublic schools that accept payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund established pursuant to section 257.11B, and the authority shall have all of the powers delegated to it in a chapter 28E agreement by a charter school, accredited nonpublic school, or private developer contracting with a charter school or an accredited nonpublic school to purchase, acquire, develop, reconstruct, remodel, or replace school buildings, for the charter school or accredited nonpublic school, with respect to the issuance or securing of bonds or notes as provided in section 256J.1.
    Sec. 8.  NEW SECTION.  16.164  Charter school facilities revolving loan program fund —— credit enhancement agreements.
   1.  a.  A charter school facilities revolving loan program fund is created within the authority to assist charter schools established pursuant to chapter 256E in acquiring suitable school facilities. The moneys in the charter school facilities revolving loan program fund are appropriated to the authority for use in the development and operation of a charter school facilities revolving loan program to assist charter schools in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings.
   b.  Moneys transferred by the authority for deposit in the charter school facilities revolving loan program fund, moneys appropriated to the charter school facilities revolving loan program, and any other moneys available to and obtained or accepted by the authority for placement in the charter school facilities revolving loan program fund shall be deposited in the fund. Additionally, payment of interest, recaptures of awards, and other repayments to the charter school facilities revolving loan program fund shall be deposited in the fund. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the charter school facilities revolving loan program fund shall be credited to the fund. Notwithstanding section 8.33, moneys that remain unencumbered or unobligated at the end of the fiscal year shall not revert but shall remain available for the same purpose in the succeeding fiscal year.
   c.  The authority shall annually allocate moneys available in the charter school facilities revolving loan program fund to assist charter schools in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings.
   2.  In addition to the charter school facilities revolving loan program authorized pursuant to subsection 1, the authority is authorized to make or enter into a liquidity or credit enhancement agreement with a charter school established pursuant to chapter 256E to assist the charter school in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings.
    Sec. 9.  NEW SECTION.  16.165  Accredited nonpublic school facilities revolving loan program fund —— credit enhancement agreements.
   1.  a.  An accredited nonpublic school facilities revolving loan program fund is created within the authority to assist accredited nonpublic schools that accept payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund established pursuant to section 257.11B in acquiring suitable school facilities. The moneys in the accredited nonpublic school facilities revolving loan program fund are appropriated to the authority for use in the development and operation of an accredited nonpublic school facilities revolving loan program to assist accredited nonpublic schools that accept payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund established pursuant to section 257.11B in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings.
   b.  Moneys transferred by the authority for deposit in the accredited nonpublic school facilities revolving loan program fund, moneys appropriated to the accredited nonpublic school facilities revolving loan program, and any other moneys available to and obtained or accepted by the authority for placement in the accredited nonpublic school facilities revolving loan program fund shall be deposited in the fund. Additionally, payment of interest, recaptures of awards, and other repayments to the accredited nonpublic school facilities revolving loan program fund shall be deposited in the fund. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the accredited nonpublic school facilities revolving loan program fund shall be credited to the fund. Notwithstanding section 8.33, moneys that remain unencumbered or unobligated at the end of the fiscal year shall not revert but shall remain available for the same purpose in the succeeding fiscal year.
   c.  The authority shall annually allocate moneys available in the accredited nonpublic school facilities revolving loan program fund to assist accredited nonpublic schools that accept payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund established pursuant to section 257.11B in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings.
   2.  In addition to the accredited nonpublic school facilities revolving loan program authorized pursuant to subsection 1, the authority is authorized to make or enter into a liquidity or credit enhancement agreement with an accredited nonpublic school that accepts payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund established pursuant to section 257.11B to assist the accredited nonpublic school in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings.
    Sec. 10.  NEW SECTION.  256J.1  Charter school and accredited nonpublic school facilities bond program.
   1.  As used in this section:
   a.  “Authority” means the Iowa finance authority.
   b.  “Bonds” means bonds which are payable solely as provided in this section.
   c.  “School” means all of the following:
   (1)  A charter school established pursuant to chapter 256E.
   (2)  An accredited nonpublic school that accepts payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund established pursuant to section 257.11B.
   2.  The authority shall cooperate with schools that wish to participate in the creation, administration, and funding of a charter school and accredited nonpublic school facilities bond program to assist such schools in financing the purchase, acquisition, development, reconstruction, remodeling, or replacement of school buildings.
   3.  The authority may issue its bonds and notes for the purpose of funding the nonrecurring cost of purchasing, acquiring, developing, reconstructing, remodeling, or replacing a school building for a school.
   4.  The authority may issue its bonds and notes for the purposes of this section and may enter into one or more lending agreements or purchase agreements with one or more bondholders or noteholders containing the terms and conditions of the repayment of and the security for the bonds or notes. The authority and the bondholders or noteholders or a trustee agent designated by the authority may enter into agreements to provide for any of the following:
   a.  That the proceeds of the bonds and notes and the investments of the proceeds may be received, held, and disbursed by the authority or by a trustee or agent designated by the authority.
   b.  That the bondholders or noteholders or a trustee or agent designated by the authority may collect, invest, and apply the amount payable under the loan agreements or any other instruments securing the debt obligations under the loan agreements.
   c.  That the bondholders or noteholders may enforce the remedies provided in the loan agreements or other instruments on their own behalf without the appointment or designation of a trustee. If there is a default in the principal of or interest on the bonds or notes or in the performance of any agreement contained in the loan agreements or other instruments, the payment or performance may be enforced in accordance with the loan agreement or other instrument.
   d.  Other terms and conditions as deemed necessary or appropriate by the authority.
   5.  The powers granted the authority under this section are in addition to other powers contained in chapter 16. All other provisions of chapter 16, except section 16.28, subsection 4, apply to bonds or notes issued and powers granted to the authority under this section, except to the extent they are inconsistent with this section.
   6.  All bonds or notes issued by the authority in connection with the program are exempt from taxation by this state and the interest on the bonds or notes is exempt from state income tax, both personal and corporate.
   7.  a.  The authority may provide in the resolution, trust agreement, or other instrument authorizing the issuance of its bonds or notes pursuant to this section that the principal of, premium, and interest on the bonds or notes are payable from any of the following and may pledge the same to its bonds and notes:
   (1)  From the amounts received by a charter school under section 256E.8, subsection 2, paragraph “c”.
   (2)  From the amounts received by a nonpublic school under section 257.11B, subsection 5.
   (3)  From the income derived from gifts and bequests made to the school for such purposes.
   (4)  From the other funds or accounts established by the authority in connection with the program or the sale and issuance of its bonds or notes.
   b.  No obligation created hereunder shall ever be or become a charge against the state of Iowa but all such obligations, including principal and interest, shall be payable solely as provided in this section.
   8.  The authority may establish reserve funds to secure one or more issues of its bonds or notes. The authority may deposit in a reserve fund established under this subsection the proceeds of the sale of its bonds or notes and other money which is made available from any other source.
   9.  A pledge made in respect of bonds or notes is valid and binding from the time the pledge is made. The money or property so pledged and received after the pledge by the authority is immediately subject to the lien of the pledge without physical delivery or further act. The lien of the pledge is valid and binding as against all persons having claims of any kind in tort, contract, or otherwise against the authority whether or not the parties have notice of the lien. Neither the resolution, trust agreement, or any other instrument by which a pledge is created needs to be recorded, filed, or perfected under chapter 554, to be valid, binding, or effective against all persons.
   10.  The members of the authority or persons executing the bonds or notes are not personally liable on the bonds or notes and are not subject to personal liability or accountability by reason of the issuance of the bonds or notes.
   11.  The bonds or notes issued by the authority are not an indebtedness or other liability of the state or of a political subdivision of the state within the meaning of any constitutional or statutory debt limitations, but are special obligations of the authority and are payable solely as described in subsection 7, paragraph “a”, to the extent that the amounts are designated in the resolution, trust agreement, or other instrument of the authority authorizing the issuance of the bonds or notes as being available as security for the bonds or notes. The authority shall not pledge the faith or credit of the state or of a political subdivision of the state to the payment of any bonds or notes. The issuance of any bonds or notes by the authority does not directly, indirectly, or contingently obligate the state or a political subdivision of the state to apply money from, or levy, or pledge any form of taxation whatsoever to the payment of the bonds or notes.
    Sec. 11.  Section 422.7, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0k.  Charter school and accredited nonpublic school facilities bond program bonds pursuant to section 256J.1.
    Sec. 12.  CODE EDITOR DIRECTIVE.  The Code editor shall designate sections 16.163 through 16.165, as enacted in this Act, as new sections within chapter 16, subchapter X, part 6, and may redesignate the preexisting part and correct internal references as necessary, including references to part headnotes.
    Sec. 13.  RETROACTIVE APPLICABILITY.  The following applies retroactively to January 1, 2026, for tax years beginning on or after that date:
   The section of this division of this Act amending section 422.7.
DIVISION VI
STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD CHILDREN

    Sec. 14.  Section 256C.3, subsection 4, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  (1)  A school district may enter into a chapter 28E agreement with a community-based provider to allow the community-based provider to provide high-quality instruction as part of the approved local program.
   (2)  Upon the request of a community-based provider, a school district shall enter into a chapter 28E agreement with a community-based provider to allow the community-based provider to provide high-quality instruction as part of the approved local program.
   (3)  A chapter 28E agreement entered into pursuant to this paragraph shall not limit the number of eligible students who may receive high-quality instruction from a community-based provider as part of the approved local program.
    Sec. 15.  NEW SECTION.  256C.7  Limitation of authority.
   1.  This chapter shall not be construed to authorize the state or any political subdivision of the state to exercise authority over any community-based provider or construed to require a community-based provider to modify its academic standards for admission or educational program in order to receive payments from a school district pursuant to section 256C.4, subsection 1.
   2.  This chapter shall not be construed to expand the authority of the state or any political subdivision of the state to impose regulations upon any community-based provider that are not necessary to implement this chapter.
   3.  A community-based provider that receives payments from a school district pursuant to section 256C.4, subsection 1, is not an agent of this state or of a political subdivision of this state.
   4.  Rules adopted by the department of education to implement this chapter that impose an undue burden on a community-based provider are invalid.
   5.  A community-based provider that receives payments from a school district pursuant to section 256C.4, subsection 1, shall be given the maximum freedom possible to provide for the educational needs of the community-based provider’s students, consistent with state and federal law.
DIVISION VII
EDUCATION SAVINGS ACCOUNTS

    Sec. 16.  Section 257.11B, subsections 3 and 4, Code 2026, are amended to read as follows:
   3.  a.  (1)  On or after January 1, but on or before June 30, preceding the school year for which the education savings account payment is requested, the parent or guardian of an eligible pupil may request an education savings account payment by submitting an application to the department of education.
   (2)  On or after December 1, but on or before December 20, preceding the semester for which the education savings account payment is requested, the parent or guardian of an eligible pupil may request an education savings account payment by submitting an application to the department of education.
   b.  Within thirty days following submission of an application, the department of education or third-party entity shall notify the parent or guardian of each pupil approved for the following school year or semester and specify the amount of the education savings account payment for the pupil, if known at the time of the notice. As soon as practical following the processing of all applications, the department of education or third-party entity shall determine the number of pupils in each school district approved for the school budget year and provide such information to the department of management.
   c.  Education savings account payments shall only be approved for one school year or one semester, as applicable, and applications must be submitted annually for payments in subsequent school years.
   4.  Each education savings account payment shall be equal to the regular program state cost per pupil for the same school budget year; provided, however, that an education savings account payment shall be equal to fifty percent of the regular program state cost per pupil for the same school budget year if the pupil’s parent or guardian submitted an application under subsection 3, paragraph “a”, subparagraph (2).
    Sec. 17.  Section 257.11B, subsection 6, paragraph a, Code 2026, is amended to read as follows:
   a.  For each pupil approved for an education savings account payment, the department of education or third-party entity shall establish an individual account for that pupil in the education savings account fund. The If the pupil’s parent or guardian submitted an application under subsection 3, paragraph “a”, subparagraph (1), the amount of the pupil’s education savings account payment shall be deposited into the pupil’s individual account on July 15 or thirty days following submission of the application, whichever is later, and such amount shall be immediately available for the payment of qualified educational expenses incurred by the parent or guardian for the pupil during that fiscal year using a payment method authorized under subsection 5.  If the pupil’s parent or guardian submitted an application under subsection 3, paragraph “a”, subparagraph (2), the amount of the pupil’s education savings account payment shall be deposited into the pupil’s individual account within thirty days following submission of the application, and such amount shall be immediately available for the payment of qualified educational expenses incurred by the parent or guardian for the pupil during that fiscal year using a payment method authorized under subsection 5.
DIVISION VIII
SCHOOL START DATE

    Sec. 18.  Section 279.10, subsection 1, Code 2026, is amended to read as follows:
   1.  The school year for each school district and accredited nonpublic school shall begin on July 1 and the school calendar shall begin no sooner than August 23 the Monday immediately preceding the last Monday in August and no later than the first Monday in December. The school calendar shall include not less than one hundred eighty days or one thousand eighty hours of instruction during the calendar year, of which not more than five days or thirty hours of instruction may be delivered primarily over the internet except as otherwise provided in section 256.43 or in rules adopted by the state board of education pursuant to section 256.7, subsection 32. The board of directors of a school district and the authorities in charge of an accredited nonpublic school shall determine the school start date for the school calendar in accordance with this subsection and shall set the number of days or hours of required attendance for the school year as provided in section 299.1, subsection 2, but the board of directors of a school district shall hold a public hearing on any proposed school calendar prior to adopting the school calendar. If the board of directors of a district or the authorities in charge of an accredited nonpublic school extends the school calendar because inclement weather caused the school district or accredited nonpublic school to temporarily close during the regular school calendar, the school district or accredited nonpublic school may excuse a graduating senior who has met district or school requirements for graduation from attendance during the extended school calendar. A school corporation may begin employment of personnel for in-service training and development purposes before the date to begin elementary and secondary school.
DIVISION IX
INDEPENDENT ACCREDITING AGENCIES

    Sec. 19.  Section 256.11, subsection 16, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  (1)  This subsection shall not be construed to authorize the state or any political subdivision of the state to exercise authority over any nonpublic school or construed to require a nonpublic school to modify its academic standards for admission or educational program.
   (2)  This section shall not be construed to expand the authority of the state or any political subdivision of the state to impose regulations upon any nonpublic school that are not necessary to implement this section.
   (3)  Rules adopted by the state board of education to implement this section that impose an undue burden on a nonpublic school are invalid.
   (4)  A nonpublic school shall be given the maximum freedom possible to provide for the educational needs of the school’s students, consistent with state and federal law.
DIVISION X
SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL REQUIREMENTS

    Sec. 20.  DEPARTMENT OF EDUCATION —— SCHEDULE OF REQUIRED TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS.
   1.  The department of education shall convene and provide administrative support to a task force that shall study the training programs in which teachers in this state are required to participate pursuant to state law and the requirements associated with renewing a teaching license.
   2.  Any expense incurred by a member of the task force shall be the responsibility of the individual member or the respective entity represented by the member.
   3.  The task force shall submit its findings and recommendations to the general assembly on or before December 31, 2026. The recommendations must include specific recommendations related to how to change current law to create a more manageable training program schedule and licensure renewal requirement schedule for teachers.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to education, including by modifying provisions related to charter schools, the Iowa public employees’ retirement system, financing programs for charter schools and nonpublic schools administered by the Iowa finance authority, the statewide voluntary preschool program for four-year-old children, education savings accounts, the school start date, independent accrediting agencies, teacher training and licensure, and making appropriations, and including applicability and retroactive applicability provisions.
   DIVISION I —— CHARTER SCHOOL FUNDING. Currently, each student enrolled in a charter school under Code chapter 256E shall be counted, for state school foundation purposes, in the student’s district of residence. The department of education is then required to pay to the charter school in which the student is enrolled an amount equal to the sum of the regular program state cost per pupil for the budget year plus other additional costs specified in Code section 256E.8(2)(a). This division adds the teacher salary supplement state cost per pupil to the amount required to be paid to the charter school. This provision applies to school budget years beginning on or after July 1, 2026.
   DIVISION II —— IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM.  The division provides that persons employed by charter schools are employees for purposes of the provisions of the Iowa public employees’ retirement system (IPERS). Additionally, the division provides that charter schools are employers for purposes of the provisions of IPERS.
   DIVISION III —— EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS. The division requires the board of directors of a school district to allow a student who resides within the district, and who is enrolled in a charter school, to participate in any extracurricular interscholastic athletic contest or competition that is provided by the school district pursuant to the terms of an agreement between the board of directors of the school district and the governing board of the charter school if the extracurricular interscholastic athletic contest or competition has not been provided by the charter school during the two immediately preceding school years and if the charter school has not entered into an agreement under Code section 280.13A (sharing interscholastic activities) with another school district, nonpublic school, or charter school that provides for the eligibility of students enrolled in the charter school to participate in the extracurricular interscholastic athletic contest or competition that is being provided by that school.
   The division requires the board of directors of a school district to allow a student who resides within a contiguous school district, and who is enrolled in a charter school, to participate in any extracurricular interscholastic athletic contest or competition that is provided by the school district pursuant to the terms of an agreement between the board of directors of the school district and the governing board of the charter school if the extracurricular interscholastic athletic contest or competition has not been provided by the charter school or by the student’s school district of residence during the two immediately preceding school years and if the charter school has not entered into an agreement under Code section 280.13A with another school district, nonpublic school, or charter school that provides for the eligibility of students enrolled in the charter school to participate in the extracurricular interscholastic athletic contest or competition that is being provided by that school.
   The division provides that if the board of directors of a school district has established a fee for the cost of a student’s participation in an extracurricular interscholastic athletic contest or competition, a student who is enrolled in a charter school and is participating in a contest or competition at a public school pursuant to the division’s provisions, or the student’s parent or guardian, shall be responsible for the payment of such fee.
   The division requires a student who is enrolled in a charter school and is participating in a contest or competition at a public school pursuant to the division’s provisions to participate under the same conditions as a student who is enrolled in the school district, including meeting the school district’s student code of conduct requirements.
   The division provides that a student who participates in an extracurricular interscholastic athletic contest or competition pursuant to the division’s provisions is deemed to satisfy the residence requirements for purposes of Code section 256.46 (rules for participation in extracurricular activities by certain children).
   DIVISION IV —— LOCAL EDUCATION AGENCY STATUS. The division provides that the governing board of a charter school that is approved under Code section 256E.5 (founding group-state board model) is a local education agency for the purpose of receiving federal funds for all attendance centers that are under the jurisdiction of the governing board.
   DIVISION V —— CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES. The division requires the Iowa finance authority (IFA) to cooperate with charter schools established pursuant to Code chapter 256E and accredited nonpublic schools that accept payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund in the creation, administration, and funding of a charter school and accredited nonpublic school facilities bond program to assist charter schools and accredited nonpublic schools in financing the purchase, acquisition, development, reconstruction, remodeling, or replacement of school buildings. The division allows the IFA to issue its bonds and notes for the purpose of funding the nonrecurring cost of purchasing, acquiring, developing, reconstructing, remodeling, or replacing a school building for a charter school or accredited nonpublic school and to enter into lending agreements or purchase agreements with bondholders or noteholders that contain certain specified provisions. The division establishes the sources from which the principal of, premium, and interest on the bonds or notes are payable. The bonds or notes issued by the IFA in connection with the program are exempt from taxation by this state and the interest on the bonds or notes is exempt from state income tax, both personal and corporate. This provision applies retroactively to January 1, 2026, for tax years beginning on or after that date.
   The division establishes a charter school facilities revolving loan program fund and an accredited nonpublic school facilities revolving loan program fund within the IFA to assist charter schools and accredited nonpublic schools that accept payment from a parent or guardian using funds from a pupil’s individual account in an education savings account fund in acquiring suitable school facilities. The moneys in the funds are appropriated to the IFA for use in the development and operation of a charter school facilities revolving loan program and an accredited nonpublic school facilities revolving loan program to assist charter schools and accredited nonpublic schools in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings. The division also allows the IFA to make or enter into a liquidity or credit enhancement agreement with a charter school or an accredited nonpublic school to assist the charter school or accredited nonpublic school in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings.
   DIVISION VI —— STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD CHILDREN. The division authorizes school districts to enter into a Code chapter 28E agreement with a community-based provider allowing the community-based provider to provide instruction as part of the approved local program, and the division requires school districts to enter into such an agreement upon the request of a community-based provider. Additionally, the division prohibits such Code chapter 28E agreements from limiting the number of eligible students who may receive instruction from a community-based provider as part of the approved local program.
   The division prohibits Code chapter 256C (statewide voluntary preschool program for four-year-old children) from being construed to authorize the state or any political subdivision of the state to exercise authority over any community-based provider or construed to require a community-based provider to modify its academic standards for admission or educational program in order to receive payments from a school district under the statewide voluntary preschool program (SWVPP). The division also prohibits Code chapter 256C from being construed to expand the authority of the state or any political subdivision of the state to impose regulations upon any community-based provider that are not necessary to implement this section. The division provides that a community-based provider that receives payments from a school district under the SWVPP is not an agent of this state or of a political subdivision of this state. Rules adopted by the department of education to implement the SWVPP that impose an undue burden on a community-based provider are invalid. The division requires that a community-based provider that receives payments from a school district under the SWVPP be given the maximum freedom possible to provide for the educational needs of the community-based provider’s students, consistent with state and federal law.
   DIVISION VII —— EDUCATION SAVINGS ACCOUNTS. The education savings account program is a program that provides funds to pupils who attend nonpublic schools to pay for qualified educational expenses, including but not limited to tuition, tutoring or cognitive skill training fees, educational therapy costs, software expenses, and expenses related to course materials. Under current law, the parent or guardian of a pupil is required to submit an application for payment under the education savings account program to the department of education on or after January 1, but on or before June 30, preceding the school year for which the education savings account payment is requested. The division allows the parent or guardian of a pupil to submit such an application on or after December 1, but on or before December 20, preceding the semester for which the education savings account payment is requested. Additionally, under current law each education savings account payment is equal to the regular program state cost per pupil for the same school budget year. The division provides that, if the parent or guardian of a pupil submitted such an application on or after December 1, but on or before December 20, preceding the semester for which the education savings account payment is requested, the education savings account payment for such pupil is equal to 50 percent of the regular program state cost per pupil for the same school budget year. The division makes conforming changes.
   DIVISION VIII —— SCHOOL START DATE. The division modifies the earliest possible start date of the school calendar for school districts and accredited nonpublic schools. Current law provides that the school calendar for school districts and accredited nonpublic schools shall begin no sooner than August 23. The division modifies this provision to provide that the school calendar shall, instead, begin no sooner than the Monday immediately preceding the last Monday in August.
   DIVISION IX —— INDEPENDENT ACCREDITING AGENCIES. Current law authorizes a nonpublic school to be accredited by an approved independent accrediting agency instead of by the state board of education if the nonpublic school is accredited by an independent accrediting agency that is on a list of approved independent accrediting agencies maintained by the state board of education. The division provides that these provisions shall not be construed to authorize the state or any political subdivision of the state to exercise authority over any nonpublic school or construed to require a nonpublic school to modify its academic standards for admission or educational program. The division also provides that these provisions shall not be construed to expand the authority of the state or any political subdivision of the state to impose regulations upon any nonpublic school that are not necessary to implement the state’s educational standards. The division provides that rules adopted by the state board of education to implement these provisions that impose an undue burden on a nonpublic school are invalid. The division requires that a nonpublic school shall be given the maximum freedom possible to provide for the educational needs of the school’s students, consistent with state and federal law.
   DIVISION X —— SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL REQUIREMENTS. The division requires the department of education to convene a task force to study the training programs in which teachers in this state are required to participate pursuant to state law and the requirements associated with renewing a teaching license. The task force is required to submit its findings and recommendations to the general assembly on or before December 31, 2026. The recommendations must include specific recommendations related to how to change current law to create a more manageable training program schedule and licensure renewal requirement schedule for teachers.