Senate File 2425 - Introduced SENATE FILE 2425 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SF 2175) 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 5 for four-year-old children, education savings accounts, 6 independent accrediting agencies, teacher training and 7 licensure, and making appropriations, and including 8 applicability and retroactive applicability provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 5427SV (2) 91 jda/jh

S.F. 2425 DIVISION I 1 CHARTER SCHOOL FUNDING 2 Section 1. Section 256E.8, subsection 2, paragraph a, Code 3 2026, is amended to read as follows: 4 a. The charter school in which the student is enrolled 5 shall receive under paragraph “c” an amount equal to the sum 6 of the regular program state cost per pupil for the budget 7 year plus the teacher leadership supplement state cost per 8 pupil, the teacher salary supplement state cost per pupil, the 9 professional development supplement state cost per pupil, and 10 the early intervention supplement state cost per pupil for 11 the budget year as provided in section 257.9 plus any moneys 12 that would be due to the school district of residence for the 13 student as a result of the non-English speaking weighting under 14 section 280.4, subsection 3 , for the budget year multiplied by 15 the state cost per pupil for the budget year. If a student 16 is an eligible pupil under section 261E.6 , the charter school 17 shall pay the tuition reimbursement amount to an eligible 18 postsecondary institution as provided in section 261E.7 . 19 Sec. 2. APPLICABILITY. This division of this Act applies to 20 school budget years beginning on or after July 1, 2026. 21 DIVISION II 22 IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM 23 Sec. 3. Section 97B.1A, subsection 8, paragraph a, Code 24 2026, is amended by adding the following new subparagraph: 25 NEW SUBPARAGRAPH . (13) Persons employed by a charter 26 school established pursuant to chapter 256E that satisfies all 27 applicable requirements under federal law for participation in 28 the retirement system. 29 Sec. 4. Section 97B.1A, subsection 9, paragraph a, Code 30 2026, is amended to read as follows: 31 a. “Employer” means the state of Iowa, the counties, 32 municipalities, agencies, public school districts, charter 33 schools established pursuant to chapter 256E that satisfy all 34 applicable requirements under federal law for participation 35 -1- LSB 5427SV (2) 91 jda/jh 1/ 21

S.F. 2425 in the retirement system, all political subdivisions, and 1 all of their departments and instrumentalities, including 2 area agencies on aging, other than those employing persons as 3 specified in subsection 8 , paragraph “b” , subparagraph (7), and 4 joint planning commissions created under chapter 28E or 28I . 5 Sec. 5. Section 256E.11, subsection 2, Code 2026, is amended 6 to read as follows: 7 2. In the event of a charter school closure, the assets of 8 the charter school shall be used first to satisfy outstanding 9 payroll obligations for employees of the school and any 10 liabilities due and owing to the Iowa public employees’ 11 retirement system , then to creditors of the school, then to the 12 public school district in which the charter school operated, 13 if applicable, and then to the state general fund. If the 14 assets of the charter school are insufficient to pay all 15 obligations of the charter school, the prioritization of the 16 distribution of assets shall be consistent with this subsection 17 and otherwise determined by the district court. 18 DIVISION III 19 EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR 20 COMPETITIONS PROVIDED BY PUBLIC SCHOOLS 21 Sec. 6. Section 280.13D, Code 2026, is amended to read as 22 follows: 23 280.13D Participation in extracurricular interscholastic 24 athletic contests or competitions provided by public schools. 25 1. a. The board of directors of a school district shall 26 allow a student who resides within the school district, and 27 who is enrolled in a nonpublic school or a charter school 28 established pursuant to chapter 256E , to participate in any 29 extracurricular interscholastic athletic contest or competition 30 that is provided by the school district pursuant to the terms 31 of an agreement between the board of directors of the school 32 district and the authorities in charge of the nonpublic school 33 or the governing board of the charter school, as applicable, 34 that provides for the eligibility of the student, if all of the 35 -2- LSB 5427SV (2) 91 jda/jh 2/ 21

S.F. 2425 following criteria are satisfied: 1 (1) The extracurricular interscholastic athletic contest or 2 competition has not been provided by the nonpublic school or 3 the charter school during the two immediately preceding school 4 years. 5 (2) The nonpublic school or charter school has not entered 6 into an agreement under section 280.13A with another school 7 district, nonpublic school, or charter school that provides 8 for the eligibility of students enrolled in the nonpublic 9 school or charter school to participate in the extracurricular 10 interscholastic athletic contest or competition that is being 11 provided by that school district, nonpublic school, or charter 12 school. 13 b. The board of directors of a school district shall allow 14 a student who resides within a contiguous school district, and 15 who is enrolled in a nonpublic school or charter school , to 16 participate in any extracurricular interscholastic athletic 17 contest or competition that is provided by the school district 18 pursuant to the terms of an agreement between the board of 19 directors of the school district and the authorities in charge 20 of the nonpublic school or the governing board of the charter 21 school, as applicable, that provides for the eligibility of the 22 student, if all of the following criteria are satisfied: 23 (1) The extracurricular interscholastic athletic contest 24 or competition has not been provided by the nonpublic school 25 or charter school or by the student’s school district of 26 residence , during the two immediately preceding school years. 27 (2) The nonpublic school has not entered into an agreement 28 under section 280.13A with another school district, nonpublic 29 school, or charter school that provides for the eligibility of 30 students enrolled in the nonpublic school or charter school to 31 participate in the extracurricular interscholastic athletic 32 contest or competition that is being provided by that school 33 district, nonpublic school, or charter school. 34 c. If the board of directors of a school district has 35 -3- LSB 5427SV (2) 91 jda/jh 3/ 21

S.F. 2425 established a fee for the cost of a student’s participation 1 in an extracurricular interscholastic athletic contest or 2 competition, a student who is enrolled in a nonpublic school 3 or a charter school and is participating in a contest or 4 competition at a public school pursuant to paragraph “a” or 5 “b” , or the student’s parent or guardian, shall be responsible 6 for the payment of such fee. The amount of such fee shall not 7 exceed the amount of the fee the board of directors of the 8 school district has established for students who are enrolled 9 in the school district. 10 2. A student who is enrolled in a nonpublic school or a 11 charter school and is participating in a contest or competition 12 at a public school pursuant to subsection 1 , paragraph “a” or 13 “b” , shall participate under the same conditions as a student 14 who is enrolled in the school district, including meeting the 15 school district’s student code of conduct requirements. 16 3. A student who participates in an extracurricular 17 interscholastic athletic contest or competition pursuant 18 to this section shall be deemed to satisfy the residence 19 requirements for purposes of section 256.46 . 20 DIVISION IV 21 LOCAL EDUCATION AGENCY STATUS 22 Sec. 7. Section 256E.5, Code 2026, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 1A. The governing board of a charter school 25 that is approved under this section shall be designated a local 26 education agency for the purpose of receiving federal funds for 27 all attendance centers that are under the jurisdiction of the 28 governing board. 29 DIVISION V 30 CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES 31 Sec. 8. NEW SECTION . 16.163 Authority to issue charter 32 school and accredited nonpublic school facilities bonds and 33 notes. 34 The authority shall assist charter schools established 35 -4- LSB 5427SV (2) 91 jda/jh 4/ 21

S.F. 2425 pursuant to chapter 256E and nonpublic schools that are 1 accredited pursuant to section 256.11, and the authority 2 shall have all of the powers delegated to it in a chapter 28E 3 agreement by a charter school, accredited nonpublic school, 4 or private developer contracting with a charter school or an 5 accredited nonpublic school to purchase, acquire, develop, 6 reconstruct, remodel, or replace school buildings, for the 7 charter school or accredited nonpublic school, with respect 8 to the issuance or securing of bonds or notes as provided in 9 section 256J.1. 10 Sec. 9. NEW SECTION . 16.164 Charter school facilities 11 revolving loan program fund —— credit enhancement agreements. 12 1. a. A charter school facilities revolving loan program 13 fund is created within the authority to assist charter schools 14 established pursuant to chapter 256E in acquiring suitable 15 school facilities. The moneys in the charter school facilities 16 revolving loan program fund are appropriated to the authority 17 for use in the development and operation of a charter school 18 facilities revolving loan program to assist charter schools in 19 purchasing, acquiring, developing, reconstructing, remodeling, 20 or replacing school buildings. 21 b. Moneys transferred by the authority for deposit 22 in the charter school facilities revolving loan program 23 fund, moneys appropriated to the charter school facilities 24 revolving loan program, and any other moneys available to 25 and obtained or accepted by the authority for placement in 26 the charter school facilities revolving loan program fund 27 shall be deposited in the fund. Additionally, payment of 28 interest, recaptures of awards, and other repayments to the 29 charter school facilities revolving loan program fund shall 30 be deposited in the fund. Notwithstanding section 12C.7, 31 subsection 2, interest or earnings on moneys in the charter 32 school facilities revolving loan program fund shall be credited 33 to the fund. Notwithstanding section 8.33, moneys that remain 34 unencumbered or unobligated at the end of the fiscal year shall 35 -5- LSB 5427SV (2) 91 jda/jh 5/ 21

S.F. 2425 not revert but shall remain available for the same purpose in 1 the succeeding fiscal year. 2 c. The authority shall annually allocate moneys available in 3 the charter school facilities revolving loan program fund to 4 assist charter schools in purchasing, acquiring, developing, 5 reconstructing, remodeling, or replacing school buildings. 6 2. In addition to the charter school facilities revolving 7 loan program authorized pursuant to subsection 1, the authority 8 is authorized to make or enter into a liquidity or credit 9 enhancement agreement with a charter school established 10 pursuant to chapter 256E to assist the charter school in 11 purchasing, acquiring, developing, reconstructing, remodeling, 12 or replacing school buildings. 13 Sec. 10. NEW SECTION . 16.165 Accredited nonpublic school 14 facilities revolving loan program fund —— credit enhancement 15 agreements. 16 1. a. An accredited nonpublic school facilities revolving 17 loan program fund is created within the authority to assist 18 nonpublic schools that are accredited pursuant to section 19 256.11 in acquiring suitable school facilities. The moneys 20 in the accredited nonpublic school facilities revolving loan 21 program fund are appropriated to the authority for use in the 22 development and operation of an accredited nonpublic school 23 facilities revolving loan program to assist nonpublic schools 24 that are accredited pursuant to section 256.11 in purchasing, 25 acquiring, developing, reconstructing, remodeling, or replacing 26 school buildings. 27 b. Moneys transferred by the authority for deposit in 28 the accredited nonpublic school facilities revolving loan 29 program fund, moneys appropriated to the accredited nonpublic 30 school facilities revolving loan program, and any other 31 moneys available to and obtained or accepted by the authority 32 for placement in the accredited nonpublic school facilities 33 revolving loan program fund shall be deposited in the fund. 34 Additionally, payment of interest, recaptures of awards, 35 -6- LSB 5427SV (2) 91 jda/jh 6/ 21

S.F. 2425 and other repayments to the accredited nonpublic school 1 facilities revolving loan program fund shall be deposited 2 in the fund. Notwithstanding section 12C.7, subsection 2, 3 interest or earnings on moneys in the accredited nonpublic 4 school facilities revolving loan program fund shall be credited 5 to the fund. Notwithstanding section 8.33, moneys that remain 6 unencumbered or unobligated at the end of the fiscal year shall 7 not revert but shall remain available for the same purpose in 8 the succeeding fiscal year. 9 c. The authority shall annually allocate moneys available 10 in the accredited nonpublic school facilities revolving 11 loan program fund to assist nonpublic schools that are 12 accredited pursuant to section 256.11 in purchasing, acquiring, 13 developing, reconstructing, remodeling, or replacing school 14 buildings. 15 2. In addition to the accredited nonpublic school 16 facilities revolving loan program authorized pursuant to 17 subsection 1, the authority is authorized to make or enter into 18 a liquidity or credit enhancement agreement with a nonpublic 19 school that is accredited pursuant to section 256.11 to assist 20 the accredited nonpublic school in purchasing, acquiring, 21 developing, reconstructing, remodeling, or replacing school 22 buildings. 23 Sec. 11. NEW SECTION . 256J.1 Charter school and accredited 24 nonpublic school facilities bond program. 25 1. As used in this section: 26 a. “Authority” means the Iowa finance authority. 27 b. “Bonds” means bonds which are payable solely as provided 28 in this section. 29 c. “School” means all of the following: 30 (1) A charter school established pursuant to chapter 256E. 31 (2) A nonpublic school that is accredited pursuant to 32 section 256.11. 33 2. The authority shall cooperate with schools that wish to 34 participate in the creation, administration, and funding of 35 -7- LSB 5427SV (2) 91 jda/jh 7/ 21

S.F. 2425 a charter school and accredited nonpublic school facilities 1 bond program to assist such schools in financing the purchase, 2 acquisition, development, reconstruction, remodeling, or 3 replacement of school buildings. 4 3. The authority may issue its bonds and notes for the 5 purpose of funding the nonrecurring cost of purchasing, 6 acquiring, developing, reconstructing, remodeling, or replacing 7 a school building for a school. 8 4. The authority may issue its bonds and notes for the 9 purposes of this section and may enter into one or more lending 10 agreements or purchase agreements with one or more bondholders 11 or noteholders containing the terms and conditions of the 12 repayment of and the security for the bonds or notes. The 13 authority and the bondholders or noteholders or a trustee 14 agent designated by the authority may enter into agreements to 15 provide for any of the following: 16 a. That the proceeds of the bonds and notes and the 17 investments of the proceeds may be received, held, and 18 disbursed by the authority or by a trustee or agent designated 19 by the authority. 20 b. That the bondholders or noteholders or a trustee or 21 agent designated by the authority may collect, invest, and 22 apply the amount payable under the loan agreements or any 23 other instruments securing the debt obligations under the loan 24 agreements. 25 c. That the bondholders or noteholders may enforce the 26 remedies provided in the loan agreements or other instruments 27 on their own behalf without the appointment or designation of a 28 trustee. If there is a default in the principal of or interest 29 on the bonds or notes or in the performance of any agreement 30 contained in the loan agreements or other instruments, the 31 payment or performance may be enforced in accordance with the 32 loan agreement or other instrument. 33 d. Other terms and conditions as deemed necessary or 34 appropriate by the authority. 35 -8- LSB 5427SV (2) 91 jda/jh 8/ 21

S.F. 2425 5. The powers granted the authority under this section are 1 in addition to other powers contained in chapter 16. All other 2 provisions of chapter 16, except section 16.28, subsection 3 4, apply to bonds or notes issued and powers granted to the 4 authority under this section, except to the extent they are 5 inconsistent with this section. 6 6. All bonds or notes issued by the authority in connection 7 with the program are exempt from taxation by this state and the 8 interest on the bonds or notes is exempt from state income tax, 9 both personal and corporate. 10 7. a. The authority may provide in the resolution, trust 11 agreement, or other instrument authorizing the issuance of its 12 bonds or notes pursuant to this section that the principal of, 13 premium, and interest on the bonds or notes are payable from 14 any of the following and may pledge the same to its bonds and 15 notes: 16 (1) From the amounts received by a charter school under 17 section 256E.8, subsection 2, paragraph “c” . 18 (2) From the amounts received by a nonpublic school under 19 section 257.11B, subsection 5. 20 (3) From the income derived from gifts and bequests made to 21 the school for such purposes. 22 (4) From the other funds or accounts established by the 23 authority in connection with the program or the sale and 24 issuance of its bonds or notes. 25 b. No obligation created hereunder shall ever be or become 26 a charge against the state of Iowa but all such obligations, 27 including principal and interest, shall be payable solely as 28 provided in this section. 29 8. The authority may establish reserve funds to secure 30 one or more issues of its bonds or notes. The authority may 31 deposit in a reserve fund established under this subsection 32 the proceeds of the sale of its bonds or notes and other money 33 which is made available from any other source. 34 9. A pledge made in respect of bonds or notes is valid 35 -9- LSB 5427SV (2) 91 jda/jh 9/ 21

S.F. 2425 and binding from the time the pledge is made. The money or 1 property so pledged and received after the pledge by the 2 authority is immediately subject to the lien of the pledge 3 without physical delivery or further act. The lien of the 4 pledge is valid and binding as against all persons having 5 claims of any kind in tort, contract, or otherwise against 6 the authority whether or not the parties have notice of the 7 lien. Neither the resolution, trust agreement, or any other 8 instrument by which a pledge is created needs to be recorded, 9 filed, or perfected under chapter 554, to be valid, binding, or 10 effective against all persons. 11 10. The members of the authority or persons executing the 12 bonds or notes are not personally liable on the bonds or notes 13 and are not subject to personal liability or accountability by 14 reason of the issuance of the bonds or notes. 15 11. The bonds or notes issued by the authority are not 16 an indebtedness or other liability of the state or of a 17 political subdivision of the state within the meaning of 18 any constitutional or statutory debt limitations, but are 19 special obligations of the authority and are payable solely as 20 described in subsection 7, paragraph “a” , to the extent that 21 the amounts are designated in the resolution, trust agreement, 22 or other instrument of the authority authorizing the issuance 23 of the bonds or notes as being available as security for the 24 bonds or notes. The authority shall not pledge the faith or 25 credit of the state or of a political subdivision of the state 26 to the payment of any bonds or notes. The issuance of any bonds 27 or notes by the authority does not directly, indirectly, or 28 contingently obligate the state or a political subdivision of 29 the state to apply money from, or levy, or pledge any form of 30 taxation whatsoever to the payment of the bonds or notes. 31 Sec. 12. Section 422.7, subsection 2, Code 2026, is amended 32 by adding the following new paragraph: 33 NEW PARAGRAPH . 0k. Charter school and accredited nonpublic 34 school facilities bond program bonds pursuant to section 35 -10- LSB 5427SV (2) 91 jda/jh 10/ 21

S.F. 2425 256J.1. 1 Sec. 13. CODE EDITOR DIRECTIVE. The Code editor shall 2 designate sections 16.163 through 16.165, as enacted in 3 this Act, as new sections within chapter 16, subchapter X, 4 part 6, and may redesignate the preexisting part and correct 5 internal references as necessary, including references to part 6 headnotes. 7 Sec. 14. RETROACTIVE APPLICABILITY. The following applies 8 retroactively to January 1, 2026, for tax years beginning on 9 or after that date: 10 The section of this division of this Act amending section 11 422.7. 12 DIVISION VI 13 STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD 14 CHILDREN 15 Sec. 15. Section 256C.3, subsection 4, Code 2026, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . e. (1) A school district may enter into 18 a chapter 28E agreement with a community-based provider to 19 allow the community-based provider to provide high-quality 20 instruction as part of the approved local program. 21 (2) Upon the request of a community-based provider, a 22 school district shall enter into a chapter 28E agreement with a 23 community-based provider to allow the community-based provider 24 to provide high-quality instruction as part of the approved 25 local program. 26 (3) A chapter 28E agreement entered into pursuant to this 27 paragraph shall not limit the number of eligible students who 28 may receive high-quality instruction from a community-based 29 provider as part of the approved local program. 30 Sec. 16. NEW SECTION . 256C.7 Limitation of authority. 31 1. This chapter shall not be construed to authorize the 32 state or any political subdivision of the state to exercise 33 authority over any community-based provider or construed to 34 require a community-based provider to modify its academic 35 -11- LSB 5427SV (2) 91 jda/jh 11/ 21

S.F. 2425 standards for admission or educational program in order to 1 receive payments from a school district pursuant to section 2 256C.4, subsection 1. 3 2. This chapter shall not be construed to expand the 4 authority of the state or any political subdivision of the 5 state to impose regulations upon any community-based provider 6 that are not necessary to implement this chapter. 7 3. A community-based provider that receives payments from a 8 school district pursuant to section 256C.4, subsection 1, is 9 not an agent of this state or of a political subdivision of 10 this state. 11 4. Rules adopted by the department of education to implement 12 this chapter that impose an undue burden on a community-based 13 provider are invalid. 14 5. A community-based provider that receives payments from 15 a school district pursuant to section 256C.4, subsection 1, 16 shall be given the maximum freedom possible to provide for the 17 educational needs of the community-based provider’s students, 18 consistent with state and federal law. 19 DIVISION VII 20 EDUCATION SAVINGS ACCOUNTS 21 Sec. 17. Section 257.11B, subsections 3 and 4, Code 2026, 22 are amended to read as follows: 23 3. a. (1) On or after January 1, but on or before June 24 30, preceding the school year for which the education savings 25 account payment is requested, the parent or guardian of an 26 eligible pupil may request an education savings account payment 27 by submitting an application to the department of education. 28 (2) On or after October 15, but on or before November 15, 29 preceding the semester for which the education savings account 30 payment is requested, the parent or guardian of an eligible 31 pupil may request an education savings account payment by 32 submitting an application to the department of education. 33 b. Within thirty days following submission of an 34 application, the department of education or third-party entity 35 -12- LSB 5427SV (2) 91 jda/jh 12/ 21

S.F. 2425 shall notify the parent or guardian of each pupil approved for 1 the following school year or semester and specify the amount of 2 the education savings account payment for the pupil, if known 3 at the time of the notice. As soon as practical following the 4 processing of all applications, the department of education or 5 third-party entity shall determine the number of pupils in each 6 school district approved for the school budget year and provide 7 such information to the department of management. 8 c. Education savings account payments shall only be 9 approved for one school year or one semester, as applicable, 10 and applications must be submitted annually for payments in 11 subsequent school years. 12 4. Each education savings account payment shall be equal to 13 the regular program state cost per pupil for the same school 14 budget year ; provided, however, that an education savings 15 account payment shall be equal to fifty percent of the regular 16 program state cost per pupil for the same school budget year if 17 the pupil’s parent or guardian submitted an application under 18 subsection 3, paragraph “a” , subparagraph (2) . 19 Sec. 18. Section 257.11B, subsection 6, paragraph a, Code 20 2026, is amended to read as follows: 21 a. For each pupil approved for an education savings account 22 payment, the department of education or third-party entity 23 shall establish an individual account for that pupil in the 24 education savings account fund. The If the pupil’s parent 25 or guardian submitted an application under subsection 3, 26 paragraph “a” , subparagraph (1), the amount of the pupil’s 27 education savings account payment shall be deposited into 28 the pupil’s individual account on July 15 or thirty days 29 following submission of the application, whichever is later, 30 and such amount shall be immediately available for the payment 31 of qualified educational expenses incurred by the parent or 32 guardian for the pupil during that fiscal year using a payment 33 method authorized under subsection 5 . If the pupil’s parent or 34 guardian submitted an application under subsection 3, paragraph 35 -13- LSB 5427SV (2) 91 jda/jh 13/ 21

S.F. 2425 “a” , subparagraph (2), the amount of the pupil’s education 1 savings account payment shall be deposited into the pupil’s 2 individual account within thirty days following submission of 3 the application, and such amount shall be immediately available 4 for the payment of qualified educational expenses incurred by 5 the parent or guardian for the pupil during that fiscal year 6 using a payment method authorized under subsection 5. 7 DIVISION VIII 8 INDEPENDENT ACCREDITING AGENCIES 9 Sec. 19. Section 256.11, subsection 16, Code 2026, is 10 amended by adding the following new paragraph: 11 NEW PARAGRAPH . d. (1) This subsection shall not be 12 construed to authorize the state or any political subdivision 13 of the state to exercise authority over any nonpublic school or 14 construed to require a nonpublic school to modify its academic 15 standards for admission or educational program. 16 (2) This section shall not be construed to expand the 17 authority of the state or any political subdivision of the 18 state to impose regulations upon any nonpublic school that are 19 not necessary to implement this section. 20 (3) Rules adopted by the state board of education to 21 implement this section that impose an undue burden on a 22 nonpublic school are invalid. 23 (4) A nonpublic school shall be given the maximum freedom 24 possible to provide for the educational needs of the school’s 25 students, consistent with state and federal law. 26 DIVISION IX 27 SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL 28 REQUIREMENTS 29 Sec. 20. DEPARTMENT OF EDUCATION —— SCHEDULE OF REQUIRED 30 TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS. 31 1. The department of education shall convene and provide 32 administrative support to a task force that shall study the 33 training programs in which teachers in this state are required 34 to participate pursuant to state law and the requirements 35 -14- LSB 5427SV (2) 91 jda/jh 14/ 21

S.F. 2425 associated with renewing a teaching license. 1 2. Any expense incurred by a member of the task force 2 shall be the responsibility of the individual member or the 3 respective entity represented by the member. 4 3. The task force shall submit its findings and 5 recommendations to the general assembly on or before 6 December 31, 2026. The recommendations must include specific 7 recommendations related to how to change current law to create 8 a more manageable training program schedule and licensure 9 renewal requirement schedule for teachers. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to education, including by modifying 14 provisions related to charter schools, the Iowa public 15 employees’ retirement system, financing programs for charter 16 schools and nonpublic schools administered by the Iowa finance 17 authority, the statewide voluntary preschool program for 18 four-year-old children, education savings accounts, independent 19 accrediting agencies, teacher training and licensure, and 20 making appropriations, and including applicability and 21 retroactive applicability provisions. 22 DIVISION I —— CHARTER SCHOOL FUNDING. Currently, each 23 student enrolled in a charter school under Code chapter 256E 24 shall be counted, for state school foundation purposes, in the 25 student’s district of residence. The department of education 26 is then required to pay to the charter school in which the 27 student is enrolled an amount equal to the sum of the regular 28 program state cost per pupil for the budget year plus other 29 additional costs specified in Code section 256E.8(2)(a). This 30 division adds the teacher salary supplement state cost per 31 pupil to the amount required to be paid to the charter school. 32 This provision applies to school budget years beginning on or 33 after July 1, 2026. 34 DIVISION II —— IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM. 35 -15- LSB 5427SV (2) 91 jda/jh 15/ 21

S.F. 2425 The division provides that persons employed by charter schools 1 that satisfy all applicable requirements under federal law 2 for participation in the retirement system are employees for 3 purposes of the provisions of the Iowa public employees’ 4 retirement system (IPERS). Additionally, the division provides 5 that charter schools that satisfy all applicable requirements 6 under federal law for participation in the retirement system 7 are employers for purposes of the provisions of IPERS. 8 The bill provides that in the event of charter school 9 closure, the assets of the charter school shall be, after 10 payroll obligations but prior to paying creditors, used to 11 satisfy any liabilities due and owing to IPERS. 12 DIVISION III —— EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC 13 CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS. The 14 division requires the board of directors of a school district 15 to allow a student who resides within the district, and 16 who is enrolled in a charter school, to participate in any 17 extracurricular interscholastic athletic contest or competition 18 that is provided by the school district pursuant to the terms 19 of an agreement between the board of directors of the school 20 district and the governing board of the charter school if the 21 extracurricular interscholastic athletic contest or competition 22 has not been provided by the charter school during the two 23 immediately preceding school years and if the charter school 24 has not entered into an agreement under Code section 280.13A 25 (sharing interscholastic activities) with another school 26 district, nonpublic school, or charter school that provides 27 for the eligibility of students enrolled in the charter school 28 to participate in the extracurricular interscholastic athletic 29 contest or competition that is being provided by that school. 30 The division requires the board of directors of a school 31 district to allow a student who resides within a contiguous 32 school district, and who is enrolled in a charter school, to 33 participate in any extracurricular interscholastic athletic 34 contest or competition that is provided by the school district 35 -16- LSB 5427SV (2) 91 jda/jh 16/ 21

S.F. 2425 pursuant to the terms of an agreement between the board of 1 directors of the school district and the governing board of 2 the charter school if the extracurricular interscholastic 3 athletic contest or competition has not been provided by the 4 charter school or by the student’s school district of residence 5 during the two immediately preceding school years and if 6 the charter school has not entered into an agreement under 7 Code section 280.13A with another school district, nonpublic 8 school, or charter school that provides for the eligibility of 9 students enrolled in the charter school to participate in the 10 extracurricular interscholastic athletic contest or competition 11 that is being provided by that school. 12 The division provides that if the board of directors of 13 a school district has established a fee for the cost of a 14 student’s participation in an extracurricular interscholastic 15 athletic contest or competition, a student who is enrolled in a 16 charter school and is participating in a contest or competition 17 at a public school pursuant to the division’s provisions, or 18 the student’s parent or guardian, shall be responsible for the 19 payment of such fee. 20 The division requires a student who is enrolled in a charter 21 school and is participating in a contest or competition at 22 a public school pursuant to the division’s provisions to 23 participate under the same conditions as a student who is 24 enrolled in the school district, including meeting the school 25 district’s student code of conduct requirements. 26 The division provides that a student who participates in an 27 extracurricular interscholastic athletic contest or competition 28 pursuant to the division’s provisions is deemed to satisfy the 29 residence requirements for purposes of Code section 256.46 30 (rules for participation in extracurricular activities by 31 certain children). 32 DIVISION IV —— LOCAL EDUCATION AGENCY STATUS. The division 33 provides that the governing board of a charter school that is 34 approved under Code section 256E.5 (founding group-state board 35 -17- LSB 5427SV (2) 91 jda/jh 17/ 21

S.F. 2425 model) is a local education agency for the purpose of receiving 1 federal funds for all attendance centers that are under the 2 jurisdiction of the governing board. 3 DIVISION V —— CHARTER SCHOOL AND NONPUBLIC SCHOOL 4 FACILITIES. The division requires the Iowa finance authority 5 (IFA) to cooperate with charter schools established pursuant 6 to Code chapter 256E and accredited nonpublic schools in the 7 creation, administration, and funding of a charter school and 8 accredited nonpublic school facilities bond program to assist 9 charter schools and accredited nonpublic schools in financing 10 the purchase, acquisition, development, reconstruction, 11 remodeling, or replacement of school buildings. The division 12 allows the IFA to issue its bonds and notes for the purpose 13 of funding the nonrecurring cost of purchasing, acquiring, 14 developing, reconstructing, remodeling, or replacing a school 15 building for a charter school or accredited nonpublic school 16 and to enter into lending agreements or purchase agreements 17 with bondholders or noteholders that contain certain specified 18 provisions. The division establishes the sources from which 19 the principal of, premium, and interest on the bonds or 20 notes are payable. The bonds or notes issued by the IFA in 21 connection with the program are exempt from taxation by this 22 state and the interest on the bonds or notes is exempt from 23 state income tax, both personal and corporate. This provision 24 applies retroactively to January 1, 2026, for tax years 25 beginning on or after that date. 26 The division establishes a charter school facilities 27 revolving loan program fund and an accredited nonpublic school 28 facilities revolving loan program fund within the IFA to 29 assist charter schools and accredited nonpublic schools in 30 acquiring suitable school facilities. The moneys in the funds 31 are appropriated to the IFA for use in the development and 32 operation of a charter school facilities revolving loan program 33 and an accredited nonpublic school facilities revolving loan 34 program to assist charter schools and accredited nonpublic 35 -18- LSB 5427SV (2) 91 jda/jh 18/ 21

S.F. 2425 schools in purchasing, acquiring, developing, reconstructing, 1 remodeling, or replacing school buildings. The division also 2 allows the IFA to make or enter into a liquidity or credit 3 enhancement agreement with a charter school or an accredited 4 nonpublic school to assist the charter school or accredited 5 nonpublic school in purchasing, acquiring, developing, 6 reconstructing, remodeling, or replacing school buildings. 7 DIVISION VI —— STATEWIDE VOLUNTARY PRESCHOOL PROGRAM 8 FOR FOUR-YEAR-OLD CHILDREN. The division authorizes school 9 districts to enter into a Code chapter 28E agreement with a 10 community-based provider allowing the community-based provider 11 to provide instruction as part of the approved local program, 12 and the division requires school districts to enter into such 13 an agreement upon the request of a community-based provider. 14 Additionally, the division prohibits such Code chapter 28E 15 agreements from limiting the number of eligible students who 16 may receive instruction from a community-based provider as part 17 of the approved local program. 18 The division prohibits Code chapter 256C (statewide 19 voluntary preschool program for four-year-old children) 20 from being construed to authorize the state or any political 21 subdivision of the state to exercise authority over 22 any community-based provider or construed to require a 23 community-based provider to modify its academic standards 24 for admission or educational program in order to receive 25 payments from a school district under the statewide voluntary 26 preschool program (SWVPP). The division also prohibits Code 27 chapter 256C from being construed to expand the authority of 28 the state or any political subdivision of the state to impose 29 regulations upon any community-based provider that are not 30 necessary to implement this section. The division provides 31 that a community-based provider that receives payments from a 32 school district under the SWVPP is not an agent of this state 33 or of a political subdivision of this state. Rules adopted by 34 the department of education to implement the SWVPP that impose 35 -19- LSB 5427SV (2) 91 jda/jh 19/ 21