S.F. 2231 Section 1. Section 256C.3, subsection 4, paragraph b, Code 1 2026, is amended to read as follows: 2 b. (1) Subject to implementation of chapter 28E agreements 3 between a school district and community-based providers of 4 services to four-year-old children, a four-year-old child who 5 is enrolled in a child care center or child development home 6 licensed or registered under chapter 237A , or in an existing 7 public or private preschool program, shall be eligible for 8 services provided by the school district’s local preschool 9 program. 10 (2) Upon the request of a community-based provider, a 11 school district shall enter into a chapter 28E agreement with a 12 community-based provider to allow the community-based provider 13 to provide high-quality instruction as part of the approved 14 local program. 15 (3) A chapter 28E agreement entered into pursuant to this 16 paragraph shall not limit the number of eligible students who 17 may receive high-quality instruction from a community-based 18 provider as part of the approved local program. 19 (4) (a) This paragraph shall not be construed to authorize 20 the state or any political subdivision of the state to exercise 21 authority over any community-based provider or construed to 22 require a community-based provider to modify its academic 23 standards for admission or educational program in order to 24 receive preschool foundation aid pursuant to section 256C.4, 25 subsection 1, paragraph “h” . 26 (b) This paragraph shall not be construed to expand the 27 authority of the state or any political subdivision of the 28 state to impose regulations upon any community-based provider 29 that are not necessary to implement the community-based 30 provider’s participation in the preschool program. 31 (c) A community-based provider that accepts preschool 32 foundation aid pursuant to section 256C.4, subsection 1, 33 paragraph “h” , is not an agent of this state or of a political 34 subdivision of this state. 35 -1- LSB 5898SV (3) 91 mb/jh 1/ 9

S.F. 2231 (d) Rules adopted by the state board to implement this 1 chapter that impose an undue burden on a community-based 2 provider are invalid. 3 (e) A community-based provider that accepts preschool 4 foundation aid pursuant to section 256C.4, subsection 1, 5 paragraph “h” , shall be given the maximum freedom possible to 6 provide for the educational needs of the children participating 7 in the community-based provider’s program, consistent with 8 state and federal law. 9 Sec. 2. Section 261A.34, subsection 4, Code 2026, is amended 10 to read as follows: 11 4. “Property” means the real estate upon which a project 12 is or will be located, including equipment, machinery, and 13 other similar items necessary or convenient for the operation 14 of the project in the manner for which its use is intended, 15 but not including such items as fuel, supplies, or other items 16 that are customarily deemed to result in a current operation 17 charge. Property does not include property used or to be used 18 primarily for sectarian instruction or study, or as a place for 19 devotional activities or religious worship, or any property 20 which is used or to be used primarily in connection with any 21 part of the program of a school or department of divinity 22 for any religious denomination or the training of ministers, 23 priests, rabbis, or other professional persons in the field of 24 religion. 25 Sec. 3. Section 261E.6, subsection 3, Code 2026, is amended 26 to read as follows: 27 3. Authorization. To participate in this program, an 28 eligible student shall make application to an eligible 29 postsecondary institution to allow the eligible student to 30 enroll for college credit in a nonsectarian course offered at 31 the institution. A comparable course, as defined in rules 32 adopted by the board of directors of the school district 33 consistent with department administrative rule, must not be 34 offered by the school district or accredited nonpublic school 35 -2- LSB 5898SV (3) 91 mb/jh 2/ 9

S.F. 2231 the student attends. A course is ineligible for purposes 1 of this section if the school district has a contractual 2 agreement with the eligible postsecondary institution under 3 section 261E.8 that meets the requirements of section 257.11, 4 subsection 3 , and the course may be delivered through such an 5 agreement in accordance with section 257.11, subsection 3 . 6 If the postsecondary institution accepts an eligible student 7 for enrollment under this section , the institution shall send 8 written notice to the student, the student’s parent or legal 9 guardian in the case of a minor child, and the student’s 10 school district or accredited nonpublic school and the school 11 district in the case of a nonpublic school student, or the Iowa 12 school for the deaf. The notice shall list the course, the 13 clock hours the student will be attending the course, and the 14 number of hours of college credit that the eligible student 15 will receive from the eligible postsecondary institution upon 16 successful completion of the course. 17 Sec. 4. Section 261E.8, subsections 1 and 3, Code 2026, are 18 amended to read as follows: 19 1. A district-to-community college sharing or concurrent 20 enrollment program is established to be administered by the 21 department to promote rigorous academic or career and technical 22 pursuits and to provide a wider variety of options to high 23 school students to enroll in eligible nonsectarian courses at 24 or through community colleges established under chapter 260C . 25 The program shall be made available to all resident students 26 in grades nine through twelve. Notice of the availability of 27 the program shall be included in a school district’s student 28 registration handbook and the handbook shall identify which 29 courses, if successfully completed, generate college credit 30 under the program. A student and the student’s parent or legal 31 guardian shall also be made aware of this program as a part of 32 the development of the student’s career and academic plan in 33 accordance with section 279.61 . 34 3. A student may make application to a community college and 35 -3- LSB 5898SV (3) 91 mb/jh 3/ 9

S.F. 2231 the school district to allow the student to enroll for college 1 credit in a nonsectarian course offered by the community 2 college. A comparable course, as defined in rules adopted 3 by the board of directors of the school district, must not 4 be offered by the school district or accredited nonpublic 5 school which the student attends. The school board shall 6 annually approve courses to be made available for high school 7 credit using locally developed criteria that establishes 8 which courses will provide the student with academic rigor 9 and will prepare the student adequately for transition to a 10 postsecondary institution. If a community college accepts a 11 student for enrollment under this section , the school district, 12 in collaboration with the community college, shall send 13 written notice to the student, the student’s parent or legal 14 guardian in the case of a minor child, and the student’s school 15 district. The notice shall list the course, the clock hours 16 the student will be attending the course, and the number of 17 hours of college credit that the student will receive from the 18 community college upon successful completion of the course. 19 Sec. 5. Section 301.1, subsection 2, Code 2026, is amended 20 to read as follows: 21 2. Textbooks adopted and purchased by a school district 22 shall, to the extent funds are appropriated by the general 23 assembly, be made available to pupils attending accredited 24 nonpublic schools upon request of the pupil or the pupil’s 25 parent under comparable terms as made available to pupils 26 attending public schools. If the general assembly appropriates 27 moneys for purposes of making textbooks available to accredited 28 nonpublic school pupils, the department of education shall 29 ascertain the amount available to a school district for the 30 purchase of nonsectarian, nonreligious textbooks for pupils 31 attending accredited nonpublic schools. The amount shall be 32 in the proportion that the basic enrollment of a participating 33 accredited nonpublic school bears to the sum of the basic 34 enrollments of all participating accredited nonpublic schools 35 -4- LSB 5898SV (3) 91 mb/jh 4/ 9

S.F. 2231 in the state for the budget year. For purposes of this 1 section , a “participating accredited nonpublic school” means 2 an accredited nonpublic school that submits a written request 3 on behalf of the school’s pupils in accordance with this 4 subsection , and that certifies its actual enrollment to the 5 department of education by October 1, annually. By November 6 1, annually, the department of education shall certify to 7 the director of the department of administrative services 8 the annual amount to be paid to each school district, and 9 the director of the department of administrative services 10 shall draw warrants payable to school districts in accordance 11 with this subsection . For purposes of this subsection , 12 an accredited nonpublic school’s enrollment count shall 13 include only students who are residents of Iowa. The costs 14 of providing textbooks to accredited nonpublic school pupils 15 as provided in this subsection shall not be included in the 16 computation of district cost under chapter 257 , but shall be 17 shown in the budget as an expense from miscellaneous income. 18 Textbook expenditures made in accordance with this subsection 19 shall be kept on file in the school district. In the event 20 that a participating accredited nonpublic school physically 21 relocates to another school district, textbooks purchased for 22 the nonpublic school with funds appropriated for purposes 23 of this chapter shall be transferred to the school district 24 in which the nonpublic school has relocated and may be made 25 available to the nonpublic school. Funds distributed to 26 a school district for purposes of purchasing textbooks in 27 accordance with this subsection which remain unexpended and 28 available for the purchase of textbooks for the nonpublic 29 school that relocated in the fiscal year in which the funds 30 were distributed shall also be transferred to the school 31 district in which the nonpublic school has relocated. 32 Sec. 6. Section 331.901, subsection 5, Code 2026, is amended 33 by striking the subsection. 34 Sec. 7. Section 331.901, subsection 7, Code 2026, is amended 35 -5- LSB 5898SV (3) 91 mb/jh 5/ 9

S.F. 2231 to read as follows: 1 7. A county officer, deputy officer, or employee who 2 violates subsection 4 or 5 is guilty of a simple misdemeanor. 3 Sec. 8. Section 422.12, subsection 1, paragraphs e and f, 4 Code 2026, are amended to read as follows: 5 e. “Textbooks” means books and other instructional materials 6 and equipment used in elementary and secondary schools in 7 teaching only those subjects legally and commonly taught in 8 public elementary and secondary schools in this state and 9 does not include instructional books and materials used in 10 the teaching of religious tenets, doctrines, or worship, the 11 purpose of which is to inculcate those tenets, doctrines, or 12 worship . “Textbooks” includes books or materials used for 13 extracurricular activities including sporting events, musical 14 or dramatic events, speech activities, driver’s education, or 15 programs of a similar nature. 16 f. “Tuition” means any charges for the expenses of 17 personnel, buildings, equipment, and materials other than 18 textbooks, and other expenses of elementary or secondary 19 schools which relate to the teaching only of those subjects 20 legally and commonly taught in public elementary and 21 secondary schools in this state and which do not relate to 22 the teaching of religious tenets, doctrines, or worship, the 23 purpose of which is to inculcate those tenets, doctrines, or 24 worship . “Tuition” includes those expenses which relate to 25 extracurricular activities including sporting events, musical 26 or dramatic events, speech activities, driver’s education, or 27 programs of a similar nature. 28 Sec. 9. Section 422.12C, subsection 2, paragraph b, 29 subparagraph (2), Code 2026, is amended by striking the 30 subparagraph. 31 Sec. 10. RETROACTIVE APPLICABILITY. The following sections 32 of this Act apply retroactively to January 1, 2026, for tax 33 years beginning on or after that date: 34 1. The section of this Act amending section 422.12, 35 -6- LSB 5898SV (3) 91 mb/jh 6/ 9

S.F. 2231 subsection 1, paragraphs “e” and “f”. 1 2. The section of this Act amending section 422.12C, 2 subsection 2, paragraph “b”, subparagraph (2). 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to eligibility and participation 7 requirements for certain education programs, preschool 8 programs, and tax provisions. 9 Under current law, a school district may enter into a Code 10 chapter 28E agreement with a community-based provider with 11 respect to the statewide preschool program for four-year-old 12 children. If a school district does so, pupils enrolled in 13 the school district’s approved local program may receive 14 services from the community-based provider, and not less than 15 95 percent of the per pupil amount paid to the school district 16 under the statewide preschool program must be passed through 17 to the community-based provider. The bill requires a school 18 district, upon the request of a community-based provider, to 19 enter into a Code chapter 28E agreement with the provider to 20 allow the provider to deliver high-quality instruction as part 21 of the district’s approved local preschool program. The bill 22 specifies that a Code chapter 28E agreement entered into under 23 the bill shall not limit the number of eligible students who 24 may receive high-quality instruction from a community-based 25 provider. 26 The bill provides limitations on state and political 27 subdivision authority with respect to community-based providers 28 participating in the preschool program. Specifically, the bill 29 provides that a community-based provider’s participation in 30 the preschool program shall not be construed to authorize the 31 state or a political subdivision to exercise authority over a 32 community-based provider or to require a provider to modify 33 its academic standards, admissions, or educational program 34 as a condition of receiving preschool foundation aid. The 35 -7- LSB 5898SV (3) 91 mb/jh 7/ 9

S.F. 2231 bill provides that a community-based provider’s participation 1 in the preschool program shall not be construed to expand 2 the authority of the state or a political subdivision to 3 impose regulations on a community-based provider that are not 4 necessary to implement the provider’s participation in the 5 preschool program. 6 The bill provides that a community-based provider that 7 accepts preschool foundation aid is not an agent of the 8 state or of a political subdivision of the state. Rules 9 adopted by the state board that impose an undue burden on a 10 community-based provider are invalid. The bill also provides 11 that a community-based provider accepting preschool foundation 12 aid shall be given the maximum freedom possible to meet the 13 educational needs of participating children, consistent with 14 state and federal law. 15 The bill amends the higher education facilities program by 16 removing the exclusion of property used for sectarian study 17 from the definition of eligible property. 18 The bill amends the postsecondary enrollment options program 19 and the district-to-community college sharing or concurrent 20 enrollment program by removing the nonsectarian course 21 requirement. 22 The bill amends textbook assistance for accredited nonpublic 23 schools by removing religious limitations on the type of 24 textbooks that may be purchased. 25 The bill strikes duties of county officers that prohibit 26 the appropriation, grant, or loan of public funds to certain 27 institutions or entities under ecclesiastical or sectarian 28 management or control and makes a conforming change as result 29 of the strike. 30 The bill removes exclusions of sectarian books and expenses 31 that relate to the teaching of religion from the definitions of 32 textbooks and tuition for purposes of the tuition and textbook 33 tax credit. This provision of the bill applies retroactively 34 to January 1, 2026, for tax years beginning on or after that 35 -8- LSB 5898SV (3) 91 mb/jh 8/ 9