Senate File 2501 - Introduced SENATE FILE 2501 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 2425) (SUCCESSOR TO SF 2175) A BILL FOR An Act relating to education, including by modifying provisions 1 related to charter school approval, contracts, funding, and 2 operations, services provided to charter schools by area 3 education agencies, charter school student participation 4 in extracurricular activities provided by public schools, 5 the Iowa public employees’ retirement system, education 6 savings accounts, independent accreditation, teacher 7 training and licensure, the statewide voluntary preschool 8 program, the district-to-community college sharing or 9 concurrent enrollment program, open enrollment, school 10 tuition organizations, and innovation zone schools; 11 making appropriations; and including effective date and 12 applicability provisions. 13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 14 TLSB 5427SZ (2) 91 jda/jh
S.F. 2501 DIVISION I 1 CHARTER SCHOOLS 2 Section 1. Section 29E.1, subsection 1, paragraph b, 3 subparagraph (4), Code 2026, is amended by striking the 4 subparagraph. 5 Sec. 2. Section 232E.1, subsection 6, Code 2026, is amended 6 to read as follows: 7 6. “Public school district” means a public school district 8 as described in chapter 274 , and includes a charter school 9 under chapter 256E , or a charter school or an innovation zone 10 school under chapter 256F . 11 Sec. 3. Section 256.7, subsection 15, Code 2026, is amended 12 to read as follows: 13 15. Adopt rules under chapter 17A that require school 14 districts, accredited nonpublic schools, and charter schools , 15 and innovation zone schools to include information regarding 16 the exemptions and requirements for an exemption described 17 in section 139A.8, subsection 4 , in any communication to 18 the parent or guardian of a student that is related to the 19 immunizations required under section 139A.8 . 20 Sec. 4. Section 256.9, subsections 69, 71, 73, and 78, Code 21 2026, are amended to read as follows: 22 69. On or before May 1, 2025, develop and distribute to 23 school districts, accredited nonpublic schools, and charter 24 schools , and innovation zone schools model policies that, if 25 adopted, would satisfy a school district’s responsibilities 26 under section 279.88 relating to policies governing student use 27 of personal electronic devices. 28 71. Develop and distribute to school districts, accredited 29 nonpublic schools, and charter schools , and innovation 30 zone schools family-centered resources to support student 31 development of mathematics knowledge at home. 32 73. On or before July 1, 2025, develop and distribute to 33 school districts, accredited nonpublic schools, and charter 34 schools , and innovation zone schools a comprehensive state 35 -1- LSB 5427SZ (2) 91 jda/jh 1/ 63
S.F. 2501 mathematics plan that is designed to increase the level of 1 mathematics proficiency attained by students using systematic 2 and sequential approaches to teaching subitizing, cardinality, 3 object counting, verbal counting, spatial relationships, 4 benchmark numbers, and part-part-whole models. 5 78. a. Develop and distribute to school districts, 6 accredited nonpublic schools, and charter schools , and 7 innovation zone schools a test in multiple-choice format that 8 consists of all of the questions contained in the most recent 9 version of the civics test developed by the United States 10 citizenship and immigration services. 11 b. On or before the January 31 immediately subsequent to 12 each general election which is a presidential election, update 13 the test described in paragraph “a” and distribute the updated 14 test to school districts, accredited nonpublic schools, and 15 charter schools , and innovation zone schools . 16 Sec. 5. Section 256.163, subsection 1, Code 2026, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . f. A charter school established pursuant to 19 chapter 256E, subchapter I. 20 Sec. 6. Section 256E.1, subsection 2, paragraphs a and b, 21 Code 2026, are amended to read as follows: 22 a. A school board may create a founding group to apply to 23 the state board or the university of northern Iowa for approval 24 to establish and operate a charter school within and as a part 25 of the school district by establishing a new attendance center, 26 creating a new school within an existing attendance center, or 27 by converting an existing attendance center to charter status. 28 b. A founding group may apply to the state board or the 29 university of northern Iowa for approval to establish and 30 operate a charter school within the boundaries of the state 31 that operates as a new attendance center independently from a 32 public school district. 33 Sec. 7. Section 256E.1, subsection 3, unnumbered paragraph 34 1, Code 2026, is amended to read as follows: 35 -2- LSB 5427SZ (2) 91 jda/jh 2/ 63
S.F. 2501 The purpose of a charter school established pursuant to this 1 chapter subchapter shall be to accomplish the following: 2 Sec. 8. Section 256E.1, subsection 3, paragraph d, Code 3 2026, is amended to read as follows: 4 d. Accelerating student learning to prevent learning loss 5 during the COVID-19 pandemic and other significant disruptions 6 to student learning. 7 Sec. 9. Section 256E.1, subsection 4, Code 2026, is amended 8 to read as follows: 9 4. The state board of education and the university of 10 northern Iowa shall be the only authorizer authorizers of 11 charter schools under this chapter subchapter . 12 Sec. 10. Section 256E.2, unnumbered paragraph 1, Code 2026, 13 is amended to read as follows: 14 As used in this chapter subchapter , unless the context 15 otherwise requires: 16 Sec. 11. Section 256E.2, subsections 2 and 5, Code 2026, are 17 amended to read as follows: 18 2. “Charter school” means a school established in accordance 19 with this chapter subchapter . 20 5. “Founding group” means a person, group of persons, 21 or education service provider that develops and submits an 22 application for a charter school to the state board or the 23 university of northern Iowa under this chapter subchapter . 24 Sec. 12. Section 256E.3, Code 2026, is amended to read as 25 follows: 26 256E.3 Department —— duty to monitor. 27 The department shall monitor the effectiveness of charter 28 schools and shall implement the applicable provisions of this 29 chapter subchapter . 30 Sec. 13. Section 256E.4, subsections 1, 2, 3, 5, 6, 7, 8, 9, 31 and 10, Code 2026, are amended to read as follows: 32 1. A school board may create a founding group to apply to 33 the state board or the university of northern Iowa for approval 34 to establish and operate a charter school within and as a part 35 -3- LSB 5427SZ (2) 91 jda/jh 3/ 63
S.F. 2501 of the school district by establishing a new attendance center, 1 creating a new school within an existing attendance center, or 2 by converting an existing attendance center. The application 3 shall demonstrate the founding group’s academic and operational 4 vision and plans for the proposed charter school, demonstrate 5 the founding group’s capacity to execute the vision and plans, 6 and provide the state board or the university of northern Iowa 7 a clear basis for assessing the founding group’s plans and 8 capacity. 9 2. The state board , in consultation with the university 10 of northern Iowa, shall adopt rules to establish appropriate 11 application timelines and deadlines for the submission of 12 charter school applications under this section . 13 3. The instructions for completing an application shall 14 include or otherwise inform applicants of all of the following: 15 a. The performance framework adopted by the state board , in 16 consultation with the university of northern Iowa, for charter 17 school oversight and evaluation requirements in accordance with 18 sections 256E.9 and 256E.10 . 19 b. The criteria the state board or the university of 20 northern Iowa will use in evaluating applications. 21 c. The requirements concerning the format and content 22 essential for applicants to demonstrate the capacities 23 necessary to establish and operate a successful charter school. 24 5. If the founding group proposes to establish a charter 25 school by converting an existing attendance center of the 26 school district, the state board or the university of northern 27 Iowa shall not approve the application unless the founding 28 group submits evidence that the attendance center’s teachers 29 and parents or guardians of students enrolled at the existing 30 attendance center voted in favor of the conversion. A vote 31 in favor of conversion under this subsection requires the 32 support of a majority of the teachers employed at the school 33 on the date of the vote and a majority of the parents or 34 guardians voting whose children are enrolled at the school, 35 -4- LSB 5427SZ (2) 91 jda/jh 4/ 63
S.F. 2501 provided that a majority of the parents or guardians eligible 1 to vote participate in the ballot process. The state board , 2 in consultation with the university of northern Iowa, shall 3 establish procedures by rule for voting under this subsection . 4 A parent or guardian voting in accordance with this subsection 5 must be a resident of this state. 6 6. In reviewing and evaluating charter school applications, 7 the state board and the university of northern Iowa shall 8 employ procedures, practices, and criteria consistent with 9 nationally recognized principles and standards for reviewing 10 charter school applications. Each application review shall 11 include thorough evaluation of the written application, an 12 in-person interview with the founding group, and an opportunity 13 in a public forum for local residents to learn about and 14 provide input on each application. 15 7. Following review of a charter school application and 16 completion of the process required under subsection 6 , the 17 state board or the university of northern Iowa shall do all of 18 the following: 19 a. Approve a charter school application only if the founding 20 group has demonstrated competence in each element of the 21 approval criteria and if the founding group is likely to open 22 and operate a successful charter school. 23 b. Make application decisions on documented evidence 24 collected through the application review process. 25 c. Adhere to the policies and criteria that are transparent, 26 based on merit, and avoid conflicts of interest or any 27 appearance thereof. 28 8. The state board or the university of northern Iowa 29 shall approve a charter school application if the application 30 satisfies the requirements of this chapter subchapter . The 31 state board or the university of northern Iowa shall approve or 32 deny a charter school application no later than seventy-five 33 calendar days after the application is received. If the state 34 board or the university of northern Iowa denies an application, 35 -5- LSB 5427SZ (2) 91 jda/jh 5/ 63
S.F. 2501 the state board or the university of northern Iowa shall 1 provide notice of denial to the founding group in writing 2 within thirty days after the state board’s or the university 3 of northern Iowa’s action. The notice shall specify the exact 4 reasons for denial and provide documentation supporting those 5 reasons. An approval decision may include, if appropriate, 6 reasonable conditions that the founding group must meet before 7 a charter school contract may be executed pursuant to section 8 256E.6 . An approved charter application shall not serve as a 9 charter school contract. 10 9. A decision of the state board or the university of 11 northern Iowa relating to an application under this section is 12 not appealable. 13 10. An unsuccessful applicant under this section may 14 subsequently reapply to the state board or the university of 15 northern Iowa . 16 Sec. 14. Section 256E.4, subsection 4, paragraph ab, Code 17 2026, is amended to read as follows: 18 ab. The specific statutes and administrative rules with 19 which the charter school does not intend to comply. The 20 department , in consultation with the university of northern 21 Iowa, shall provide technical assistance to the applicant 22 concerning statutes and administrative rules that may be waived 23 under the charter school contract in order to facilitate the 24 goals of the charter school. 25 Sec. 15. Section 256E.5, subsections 1, 2, 3, 5, 6, 8, 9, 26 and 10, Code 2026, are amended to read as follows: 27 1. A founding group may apply to the state board or the 28 university of northern Iowa for approval to establish and 29 operate a charter school within the boundaries of the state 30 that operates as a new attendance center independently from a 31 public school district. The application shall demonstrate the 32 founding group’s academic and operational vision and plans for 33 the proposed charter school, demonstrate the founding group’s 34 capacity to execute the vision and plans, and provide the state 35 -6- LSB 5427SZ (2) 91 jda/jh 6/ 63
S.F. 2501 board or the university of northern Iowa a clear basis for 1 assessing the founding group’s plans and capacity. 2 2. The state board , in consultation with the university 3 of northern Iowa, shall adopt rules to establish appropriate 4 application timelines and deadlines for the submission of 5 charter school applications under this section . 6 3. The instructions for completing an application shall 7 include or otherwise inform applicants of all of the following: 8 a. The performance framework adopted by the state board , in 9 consultation with the university of northern Iowa, for charter 10 school oversight and evaluation requirements in accordance with 11 sections 256E.9 and 256E.10 . 12 b. The criteria the state board or the university of 13 northern Iowa will use in evaluating applications. 14 c. The requirements concerning the format and content 15 essential for applicants to demonstrate the capacities 16 necessary to establish and operate a successful charter school. 17 5. In reviewing and evaluating charter school applications, 18 the state board and the university of northern Iowa shall 19 employ procedures, practices, and criteria consistent with 20 nationally recognized principles and standards for reviewing 21 charter school applications. Each application review shall 22 include thorough evaluation of the written application, an 23 in-person interview with the applicant, and an opportunity in a 24 public forum for local residents of the public school district 25 within which the applicant proposes to locate the charter 26 school to learn about and provide input on each application. 27 6. Following review of a charter school application and 28 completion of the process required under subsection 5 , the 29 state board or the university of northern Iowa shall do all of 30 the following: 31 a. Approve a charter school application only if the 32 applicant has demonstrated competence in each element of the 33 state board’s or the university of northern Iowa’s published 34 approval criteria and the applicant is likely to open and 35 -7- LSB 5427SZ (2) 91 jda/jh 7/ 63
S.F. 2501 operate a successful charter school. 1 b. Make application decisions on documented evidence 2 collected through the application review process. 3 c. Adhere to the policies and criteria that are transparent, 4 based on merit, and avoid conflicts of interest or any 5 appearance thereof. 6 8. The state board or the university of northern Iowa 7 shall approve a charter school application if the application 8 satisfies the requirements of this chapter subchapter . The 9 state board or the university of northern Iowa shall approve or 10 deny a charter school application no later than seventy-five 11 calendar days after the application is received. If the 12 state board or the university of northern Iowa denies an 13 application, the state board or the university of northern Iowa 14 shall provide notice of denial to the applicant in writing 15 within thirty days after board action. The notice shall 16 specify the exact reasons for denial and provide documentation 17 supporting those reasons. An approval decision may include, 18 if appropriate, reasonable conditions that the applicant must 19 meet before a charter school contract may be executed pursuant 20 to section 256E.6 . An approved charter application shall not 21 serve as a charter school contract. 22 9. An unsuccessful charter school applicant may 23 subsequently reapply to the state board or the university of 24 northern Iowa . 25 10. A decision of the state board or the university of 26 northern Iowa relating to an application under this section is 27 not appealable. 28 Sec. 16. Section 256E.5, Code 2026, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 1A. The governing board of a charter school 31 that is approved under this section shall be designated a local 32 education agency for the purpose of receiving federal funds for 33 all attendance centers that are under the jurisdiction of the 34 governing board. 35 -8- LSB 5427SZ (2) 91 jda/jh 8/ 63
S.F. 2501 Sec. 17. Section 256E.5, subsection 4, paragraph ab, Code 1 2026, is amended to read as follows: 2 ab. The specific statutes and administrative rules with 3 which the charter school does not intend to comply. The 4 department , in consultation with the university of northern 5 Iowa, shall provide technical assistance to the applicant 6 concerning statutes and administrative rules that may be waived 7 under the charter school contract in order to facilitate the 8 goals of the charter school. 9 Sec. 18. Section 256E.6, Code 2026, is amended to read as 10 follows: 11 256E.6 Charter school contract. 12 1. Within the later of thirty days following approval 13 of a charter school application or upon the satisfaction of 14 all reasonable conditions imposed on the applicant in the 15 charter school approval, if any, an enforceable and renewable 16 charter school contract shall be executed between the founding 17 group and the state board or the university of northern Iowa, 18 as applicable, setting forth the academic and operational 19 performance expectations and measures by which the charter 20 school will be evaluated pursuant to sections 256E.9 and 21 256E.10 and the other rights and duties of the parties. 22 2. An initial charter school contract shall be granted for 23 a term of five school budget years , commencing with the school 24 budget year in which the charter school opens . The charter 25 school contract shall include the beginning and ending dates 26 of the charter school contract term. An approved charter 27 school may delay its opening for a period of time not to exceed 28 one school year in order to plan and prepare for the charter 29 school’s opening shall open on the first day of the school year 30 that is two school years immediately subsequent to the school 31 year in which the charter school contract is executed under 32 subsection 1; provided, however, that the approved charter 33 school may open on the first day of the school year that is 34 immediately subsequent to the school year in which the charter 35 -9- LSB 5427SZ (2) 91 jda/jh 9/ 63
S.F. 2501 school contract is executed under subsection 1 if the approved 1 charter school demonstrates adequate preparation to the state 2 board or the university of northern Iowa . If the charter 3 school requires an opening delay of more than one school year 4 two school years immediately subsequent to the school year in 5 which the charter school contract is executed under subsection 6 1 , the charter school may request an extension from the state 7 board or the university of northern Iowa . 8 3. Each charter school contract shall be signed by 9 the president of the state board or the president of the 10 university of northern Iowa, as applicable, and the president 11 or appropriate officer of the governing body of the founding 12 group. 13 4. Within fifteen days of the execution of a charter school 14 contract entered into by the state board or the university of 15 northern Iowa , the state board or the university of northern 16 Iowa shall notify the department and the department of 17 management of the name of the charter school and any applicable 18 education service provider, the proposed location of the 19 charter school, and the charter school’s first year projected 20 enrollment. 21 5. A charter school approved under this chapter subchapter 22 shall not commence operations without a valid charter school 23 contract executed in accordance with this section and approved 24 in an open session of the state board or by the university of 25 northern Iowa . 26 6. The contract may provide for requirements or conditions 27 to govern and monitor the start-up progress of an approved 28 charter school prior to the opening of the charter school 29 from the date the charter school contract is executed 30 through the date the charter school opens, including but not 31 limited to conditions to ensure that the charter school meets 32 all building, health, safety, insurance, and other legal 33 requirements. 34 7. A charter school contract may be amended to govern 35 -10- LSB 5427SZ (2) 91 jda/jh 10/ 63
S.F. 2501 multiple charter schools operated by the same applicant and 1 approved by the state board or the university of northern Iowa . 2 However, each charter school that is part of a charter school 3 contract shall be separate and distinct from any other charter 4 school governed by the contract. 5 Sec. 19. Section 256E.7, subsection 1, unnumbered paragraph 6 1, Code 2026, is amended to read as follows: 7 In order to fulfill the charter school’s public purpose, a 8 charter school established under this chapter subchapter shall 9 be organized as a nonprofit education organization and shall 10 have all the powers necessary for carrying out the terms of 11 the charter school contract including but not limited to the 12 following, as applicable: 13 Sec. 20. Section 256E.7, subsection 2, unnumbered paragraph 14 1, Code 2026, is amended to read as follows: 15 A charter school established under this chapter subchapter 16 is exempt from all state statutes and rules and any local rule, 17 regulation, or policy, applicable to a noncharter school, 18 except that the charter school shall do all of the following: 19 Sec. 21. Section 256E.7, subsection 2, paragraphs g, i, and 20 w, Code 2026, are amended to read as follows: 21 g. Be subject to the same financial audits, audit 22 procedures, and audit requirements as a school district. The 23 audit shall be consistent with the requirements of sections 24 11.6 , 11.14 , 11.19 , and 279.29 , and section 256.9, subsection 25 20 , except to the extent deviations are necessary because of 26 the program at the school. The department, the university 27 of northern Iowa, the auditor of state, or the legislative 28 services agency may conduct financial, program, or compliance 29 audits. 30 i. Provide instruction for at least the number of days 31 or hours required by section 279.10, subsection 1 , unless 32 specifically waived by the state board or the university of 33 northern Iowa as part of the application process. 34 w. Comply with the requirements of this chapter subchapter . 35 -11- LSB 5427SZ (2) 91 jda/jh 11/ 63
S.F. 2501 Sec. 22. Section 256E.7, subsection 2, paragraph h, 1 unnumbered paragraph 1, Code 2026, is amended to read as 2 follows: 3 Be subject to and comply with the requirements of section 4 256.7, subsection 21 , and the educational standards of section 5 256.11 , unless specifically waived by the state board or the 6 university of northern Iowa during the application process; 7 provided, however, that the state board or the university of 8 northern Iowa shall not waive any of the following educational 9 standards: 10 Sec. 23. Section 256E.7, subsection 9, Code 2026, is amended 11 to read as follows: 12 9. Individuals compensated by an education service provider 13 are prohibited from serving as a voting member on the governing 14 board of any charter school unless the state board or the 15 university of northern Iowa waives such prohibition. 16 Sec. 24. Section 256E.8, subsections 1 and 4, Code 2026, are 17 amended to read as follows: 18 1. Each student enrolled in a charter school established 19 under this chapter subchapter shall be counted, for state 20 school foundation purposes, in the student’s district of 21 residence pursuant to section 257.6, subsection 1 , paragraph 22 “a” , subparagraph (9), including any applicable amounts under 23 section 256B.9 . For purposes of this section , residence means 24 a residence under section 282.1 . 25 4. If necessary, and pursuant to rules adopted by the 26 state board, in consultation with the university of northern 27 Iowa, funding amounts required under this section for the 28 first school year of a new charter school shall be based on 29 enrollment estimates for the charter school included in the 30 charter school contract. The department , in consultation 31 with the university of northern Iowa, shall adopt rules to 32 establish a process for determining estimated enrollments for 33 charter school funding purposes in school years after the first 34 school year of a charter school. Amounts paid using estimated 35 -12- LSB 5427SZ (2) 91 jda/jh 12/ 63
S.F. 2501 enrollments shall be reconciled during subsequent payments 1 based on actual enrollment of the charter school during each 2 school year. 3 Sec. 25. Section 256E.9, subsection 1, unnumbered paragraph 4 1, Code 2026, is amended to read as follows: 5 The performance provisions within the charter school 6 contract shall be based on a performance framework adopted 7 by the state board , in consultation with the university 8 of northern Iowa, that clearly sets forth the academic and 9 operational performance indicators, measures, and metrics that 10 will guide the evaluation of the charter school by the state 11 board or the university of northern Iowa , without compromising 12 individual student privacy. The performance framework shall 13 include but is not limited to indicators, measures, and metrics 14 for all of the following: 15 Sec. 26. Section 256E.9, subsections 2 and 5, Code 2026, are 16 amended to read as follows: 17 2. Annual performance targets shall be agreed upon between 18 each charter school and the state board , in consultation 19 with the university of northern Iowa, if applicable . Such 20 performance targets shall be contained in the charter school 21 contract and shall be designed to help each charter school 22 meet applicable federal, state, and local standards. The 23 performance targets contained in the charter school contract 24 may be amended by mutual agreement after the charter school is 25 operating and has collected initial achievement data for the 26 charter school’s students. 27 5. Each charter school established under this chapter 28 subchapter shall be evaluated and graded by the department 29 pursuant to the attendance center performance ranking system 30 developed and adopted by the department. 31 Sec. 27. Section 256E.10, subsections 1, 2, 6, 8, 12, and 32 13, Code 2026, are amended to read as follows: 33 1. The state board and the university of northern Iowa shall 34 monitor the performance and compliance of each charter school 35 -13- LSB 5427SZ (2) 91 jda/jh 13/ 63
S.F. 2501 the state board approves approved by the state board or the 1 university of northern Iowa , including collecting and analyzing 2 data according to the charter school contract in order to meet 3 the requirements of this chapter subchapter . Such oversight 4 may include inquiries and investigation of the charter school 5 so long as the activities are consistent with the intent of 6 this chapter subchapter , adhere to the terms of the charter 7 school contract, and do not unduly inhibit the autonomy granted 8 to the charter school. Any performance report resulting from 9 an inquiry or investigation under this section shall, upon 10 conclusion of such action, be included in the annual report 11 required under section 256E.12 . 12 2. As part of the charter school contract, the charter 13 school shall submit an annual report to the state board or the 14 university of northern Iowa to assist the state board or the 15 university of northern Iowa in evaluating the charter school’s 16 performance and compliance with the performance framework. 17 6. Annually, by June 30, the state board or the university 18 of northern Iowa, as applicable, shall issue a charter school 19 performance report and charter school contract renewal 20 application guidance to each charter school whose charter 21 school contract will expire during the following school budget 22 year. The performance report shall summarize the charter 23 school’s performance record to date based on the data required 24 by the charter school contract and by this chapter subchapter 25 and shall identify concerns that may jeopardize renewal of the 26 charter school contract if not remedied. The charter school 27 shall have sixty days to respond to the performance report and 28 submit any corrections or clarifications for the report. 29 8. No later than October 1, the governing board of a charter 30 school seeking renewal shall submit a renewal application to 31 the state board or the university of northern Iowa pursuant to 32 the renewal application guidance. A renewal or denial shall be 33 approved by resolution of the state board , or by the university 34 of northern Iowa, within sixty days following the filing of the 35 -14- LSB 5427SZ (2) 91 jda/jh 14/ 63
S.F. 2501 renewal application. 1 12. A decision to revoke or to not renew a charter school 2 contract shall be by resolution of the state board , or by 3 the university of northern Iowa, and shall clearly state the 4 reasons for the revocation or nonrenewal. 5 13. If a charter school has been evaluated and graded to 6 be in the exceptional category, or the highest rated category 7 under a succeeding evaluation system, under the evaluation and 8 grading required under section 256E.9, subsection 5 , for the 9 immediately preceding two school years, and the charter school 10 is in compliance with the current charter school contract and 11 all provisions of this chapter subchapter , the charter school’s 12 application renewal under subsection 8 shall be renewed 13 for an additional period of time equal to the length of the 14 original charter school contract or the most recent renewal 15 of the contract, whichever is longer, unless the state board 16 or the university of northern Iowa provides written notice to 17 the charter school of the state board’s or the university of 18 northern Iowa’s rejection of the expedited renewal within sixty 19 days of the filing of the application. The state board or 20 the university of northern Iowa shall not reject an expedited 21 renewal application unless the state board or the university of 22 northern Iowa finds exceptional circumstances for the rejection 23 or seeks material changes to the charter school contract. 24 Sec. 28. Section 256E.10, subsection 9, unnumbered 25 paragraph 1, Code 2026, is amended to read as follows: 26 Unless eligible for expedited renewal under subsection 13 , 27 when reviewing a charter school contract renewal application, 28 the state board or the university of northern Iowa shall do all 29 of the following: 30 Sec. 29. Section 256E.10, subsection 10, unnumbered 31 paragraph 1, Code 2026, is amended to read as follows: 32 A charter school contract may be revoked at any time or not 33 renewed if the state board or the university of northern Iowa 34 determines that the charter school did any of the following: 35 -15- LSB 5427SZ (2) 91 jda/jh 15/ 63
S.F. 2501 Sec. 30. Section 256E.10, subsection 10, paragraph a, Code 1 2026, is amended to read as follows: 2 a. Committed a material violation of any of the terms, 3 conditions, standards, or procedures required under the charter 4 school contract or this chapter subchapter . 5 Sec. 31. Section 256E.10, subsection 11, unnumbered 6 paragraph 1, Code 2026, is amended to read as follows: 7 The state board , in consultation with the university of 8 northern Iowa, shall develop charter school contract revocation 9 and nonrenewal standards and procedures that do all of the 10 following: 11 Sec. 32. Section 256E.11, subsection 1, Code 2026, is 12 amended to read as follows: 13 1. Prior to any charter school closure decision, the state 14 board , in consultation with the university of northern Iowa, 15 shall develop a charter school closure protocol to ensure 16 timely notice to parents and guardians, provide for the orderly 17 transition of students and student records to new schools, and 18 to provide proper disposition of school funds, property, and 19 assets in accordance with the requirements of this chapter 20 subchapter . The protocol shall specify required actions and 21 timelines and identify responsible parties for each such 22 action. 23 Sec. 33. Section 256E.12, Code 2026, is amended to read as 24 follows: 25 256E.12 Reports. 26 1. Each charter school shall prepare and file an annual 27 report with the department. The department , in consultation 28 with the university of northern Iowa, shall prescribe by rule 29 the required contents of the report, but each such report shall 30 include information regarding student achievement, including 31 annual academic growth and proficiency, graduation rates, 32 and financial performance and sustainability. The reports 33 are public records and the examination, publication, and 34 dissemination of the reports are governed by the provisions of 35 -16- LSB 5427SZ (2) 91 jda/jh 16/ 63
S.F. 2501 chapter 22 . 1 2. The state board , in consultation with the university of 2 northern Iowa, shall prepare and file with the general assembly 3 by December 1, annually, a comprehensive report with findings 4 and recommendations relating to the charter school program in 5 the state and whether the charter school program under this 6 chapter subchapter is meeting the goals and purposes of the 7 program. The report also shall contain, for each charter 8 school, a copy of the charter school’s mission statement, 9 attendance statistics and dropout rate, aggregate assessment 10 test scores, projections of financial stability, and the number 11 and qualifications of teachers and administrators. 12 Sec. 34. Section 256F.1, subsection 1, Code 2026, is amended 13 to read as follows: 14 1. Charter schools and innovation zone schools shall be part 15 of the state’s program of public education. 16 Sec. 35. Section 256F.1, subsection 3, unnumbered paragraph 17 1, Code 2026, is amended to read as follows: 18 The purpose of a charter school or an innovation zone school 19 established pursuant to this chapter subchapter shall be to 20 accomplish the following: 21 Sec. 36. Section 256F.1, subsection 4, Code 2026, is amended 22 by striking the subsection. 23 Sec. 37. Section 256F.2, unnumbered paragraph 1, Code 2026, 24 is amended to read as follows: 25 As used in this chapter subchapter , unless the context 26 otherwise requires: 27 Sec. 38. Section 256F.2, subsections 1 and 3, Code 2026, are 28 amended to read as follows: 29 1. “Advisory council” means a council appointed by the 30 school board of directors of a charter school or an innovation 31 zone consortium pursuant to section 256F.5, subsection 4 . 32 3. “Charter school” means a charter school established in 33 accordance with this chapter subchapter . 34 Sec. 39. Section 256F.2, subsections 5 and 6, Code 2026, are 35 -17- LSB 5427SZ (2) 91 jda/jh 17/ 63
S.F. 2501 amended by striking the subsections. 1 Sec. 40. Section 256F.3, Code 2026, is amended to read as 2 follows: 3 256F.3 Application Monitoring —— no new approvals —— adoption 4 of rules . 5 1. The department shall monitor the effectiveness of 6 charter schools and innovation zone schools and shall implement 7 the applicable provisions of this chapter subchapter . 8 2. a. To receive approval to establish a charter school 9 in accordance with this chapter , the principal, teachers, 10 or parents or guardians of students at an existing public 11 school shall submit an application to the school board to 12 convert an existing attendance center to a charter school. 13 An attendance center shall not enter into a charter school 14 contract with a school district under this chapter unless the 15 attendance center is located within the school district. The 16 application shall demonstrate the support of at least fifty 17 percent of the teachers employed at the school on the date of 18 the submission of the application and fifty percent of the 19 parents or guardians voting whose children are enrolled at the 20 school, provided that a majority of the parents or guardians 21 eligible to vote participate in the ballot process, according 22 to procedures established by rules of the state board. 23 b. To receive approval to establish an innovation zone 24 school in accordance with this chapter , an innovation zone 25 consortium shall submit an application to the state board 26 which demonstrates the support of at least fifty percent of 27 the teachers employed at each proposed innovation zone school 28 on the date of the submission of the application and fifty 29 percent of the parents or guardians voting whose children are 30 enrolled at each proposed innovation zone school, provided 31 that a majority of the parents or guardians eligible to vote 32 participate in the ballot process, according to procedures 33 established by rules of the state board. 34 c. A parent or guardian voting in accordance with this 35 -18- LSB 5427SZ (2) 91 jda/jh 18/ 63
S.F. 2501 subsection must be a resident of this state. 1 3. A school board shall receive and review all applications 2 for converting an existing building or creating a new building 3 for a charter school. Applications received on or before 4 October 1 of a calendar year shall be considered for charter 5 schools to be established at the beginning of the school 6 district’s next school year or at a time agreed to by the 7 applicant and the school board. However, a school board may 8 receive and consider applications after October 1 at its 9 discretion. 10 4. A school board shall by a majority vote approve or 11 deny an application relating to a charter school no later 12 than sixty calendar days after the application is received. 13 An application approved by a school board and subsequently 14 approved by the state board pursuant to subsection 6 shall 15 constitute, at a minimum, an agreement between the school board 16 and the charter school for the operation of the charter school. 17 A school board that denies an application for a conversion 18 to a charter school shall provide notice of denial to the 19 applicant in writing within thirty days after board action. 20 The notice shall specify the exact reasons for denial and 21 provide documentation supporting those reasons. 22 5. An applicant may appeal school board denial of the 23 applicant’s charter school application to the state board 24 in accordance with the procedures set forth in chapter 290 . 25 The state board shall affirm, modify, or reverse the school 26 board’s decision on the basis of the information provided in 27 the application indicating the ability and willingness of the 28 proposed charter school to meet the requirements of section 29 256F.1, subsection 3 , and section 256F.4 . 30 6. Upon approval of an application for the proposed 31 establishment of a charter school, the school board shall 32 submit an application for approval to establish the charter 33 school to the state board in accordance with section 256F.5 . 34 7. An application submitted to the state board pursuant to 35 -19- LSB 5427SZ (2) 91 jda/jh 19/ 63
S.F. 2501 subsection 2 , paragraph “b” , or subsection 6 shall set forth the 1 manner in which the charter school or innovation zone school 2 will provide special instruction, in accordance with section 3 280.4 , to students who are English learners. The application 4 shall set forth the manner in which the charter school or 5 innovation zone school will comply with federal and state laws 6 and regulations relating to the federal National School Lunch 7 Act and the federal Child Nutrition Act of 1966 , 42 U.S.C. 8 §1751 1785 , and chapter 283A . The state board shall approve 9 only those applications that meet the requirements specified in 10 section 256F.1, subsection 3 , and sections 256F.4 and 256F.5 . 11 The state board may deny an application if the state board 12 deems that approval of the application is not in the best 13 interest of the affected students. 14 8. The state board shall approve not more than ten 15 innovation zone consortium applications. 16 9. 2. The state board shall not approve a new charter 17 school under this chapter subchapter on or after July 1, 2021. 18 10. 3. The state board shall adopt rules in accordance with 19 chapter 17A for the implementation of this chapter subchapter . 20 If federal rules or regulations relating to the distribution 21 or utilization of federal funds allocated to the department 22 pursuant to this section are adopted that are inconsistent 23 with the provisions of this chapter subchapter , the state 24 board shall adopt rules to comply with the requirements of the 25 federal rules or regulations. The state board shall identify 26 inconsistencies between federal and state rules and regulations 27 as provided in this subsection and shall submit recommendations 28 for legislative action to the chairpersons and ranking members 29 of the senate and house standing committees on education at the 30 next meeting of the general assembly. 31 Sec. 41. Section 256F.4, subsection 1, Code 2026, is amended 32 by striking the subsection. 33 Sec. 42. Section 256F.4, subsection 2, unnumbered paragraph 34 1, Code 2026, is amended to read as follows: 35 -20- LSB 5427SZ (2) 91 jda/jh 20/ 63
S.F. 2501 Although a charter school or innovation zone school may 1 elect to comply with one or more provisions of statute or 2 administrative rule, a charter school or innovation zone school 3 is exempt from all statutes and rules applicable to a school, 4 a school board, or a school district, except that the charter 5 school or innovation zone school shall do all of the following: 6 Sec. 43. Section 256F.4, subsection 2, paragraphs a and h, 7 Code 2026, are amended to read as follows: 8 a. Meet all applicable federal, state, and local health and 9 safety requirements and laws prohibiting discrimination on the 10 basis of race, creed, color, sex, sexual orientation, national 11 origin, religion, ancestry, or disability. A charter school 12 or innovation zone school located within the boundaries of a 13 school district subject to court-ordered desegregation at the 14 time the charter school or innovation zone school application 15 is approved shall be subject to the desegregation order unless 16 otherwise specifically provided for in the desegregation order. 17 h. Be subject to and comply with chapter 284 relating to 18 the student achievement and teacher quality program. A charter 19 school or innovation zone school that complies with chapter 20 284 shall receive state moneys or be eligible to receive state 21 moneys calculated as provided in section 257.10, subsections 22 9 and 10 , and section 257.37A as if it did not operate under a 23 charter school or innovation zone school contract. 24 Sec. 44. Section 256F.4, subsection 2, Code 2026, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . v. Be subject to and comply with the 27 requirements of section 256E.9 related to the incorporation 28 into the charter school contract of a performance framework 29 that is used by the state board to evaluate the charter school 30 in the same manner as a charter school established under 31 subchapter I. 32 Sec. 45. Section 256F.4, subsections 3, 4, 5, 6, 7, and 8, 33 Code 2026, are amended to read as follows: 34 3. A charter school or innovation zone school shall not 35 -21- LSB 5427SZ (2) 91 jda/jh 21/ 63
S.F. 2501 discriminate in its student admissions policies or practices 1 on the basis of intellectual or athletic ability, measures 2 of achievement or aptitude, or status as a person with a 3 disability. However, a charter school or innovation zone 4 school may limit admission to students who are within a 5 particular range of ages or grade levels or on any other 6 basis that would be legal if initiated by a school district. 7 Enrollment priority shall be given to the siblings of students 8 enrolled in a charter school or innovation zone school . 9 4. A charter school or innovation zone school shall 10 enroll an eligible resident student who submits a timely 11 application unless the number of applications exceeds the 12 capacity of a program, class, grade level, or building. In 13 this case, students must be accepted by lot. A charter school 14 or innovation zone school may enroll an eligible nonresident 15 student who submits a timely application in accordance with 16 the student admission policy established pursuant to section 17 256F.5, subsection 1 . If the charter school or innovation zone 18 school enrolls an eligible nonresident student, the charter 19 school or innovation zone school shall notify the school 20 district of residence and the sending district not later than 21 March 1 of the preceding school year. Transportation for the 22 student shall be in accordance with section 282.18, subsection 23 10 . The sending district shall make payments to the charter 24 school or innovation zone consortium in the manner required 25 under section 282.18, subsection 7 . If the nonresident pupil 26 is also an eligible pupil under section 261E.6 , the innovation 27 zone consortium shall pay the tuition reimbursement amount to 28 an eligible postsecondary institution as provided in section 29 261E.7 . 30 5. A charter school or innovation zone school shall provide 31 instruction for at least the number of days or hours required 32 by section 279.10, subsection 1 . 33 6. Notwithstanding subsection 2 , a charter school or 34 innovation zone school shall meet the requirements of section 35 -22- LSB 5427SZ (2) 91 jda/jh 22/ 63
S.F. 2501 256.7, subsection 21 . 1 7. a. A charter school shall be considered a part of the 2 school district in which it is located for purposes of state 3 school foundation aid pursuant to chapter 257 . 4 b. Students enrolled in an innovation zone school shall 5 be counted, for state school foundation aid purposes, in the 6 student’s district of residence. 7 8. A charter school or innovation zone consortium may enter 8 into contracts in accordance with chapter 26 . 9 Sec. 46. Section 256F.5, unnumbered paragraph 1, Code 2026, 10 is amended to read as follows: 11 An application to the state board for the approval of a 12 charter school or innovation zone school shall include but 13 shall not be limited to a description of the following: 14 Sec. 47. Section 256F.5, subsections 1, 2, 4, 6, 7, 10, 15 12, 13, 14, 15, 16, and 17, Code 2026, are amended to read as 16 follows: 17 1. The method for admission to the charter school or 18 innovation zone school . 19 2. The mission, purpose, innovation, and specialized focus 20 of the charter school or innovation zone school . 21 4. The method for appointing or forming an advisory 22 council for the charter school or innovation zone school . 23 The membership of an advisory council appointed or formed in 24 accordance with this chapter subchapter shall not include more 25 than one member of a participating school board. 26 6. The charter school or innovation zone school governance 27 and bylaws. 28 7. The financial plan for the operation of the charter 29 school or innovation zone school including, at a minimum, 30 a listing of the support services the school district or 31 innovation zone consortium will provide, and the charter 32 school or innovation zone school’s revenues, budgets, and 33 expenditures. 34 10. The organization of the charter school or innovation 35 -23- LSB 5427SZ (2) 91 jda/jh 23/ 63
S.F. 2501 zone school in terms of ages of students or grades to be taught 1 along with an estimate of the total enrollment of the charter 2 school or innovation zone school . 3 12. A statement indicating how the charter school or 4 innovation zone school will meet the requirements of section 5 256F.1, as applicable; section 256F.4, subsection 2 , paragraph 6 “a” ; and section 256F.4, subsection 3 . 7 13. Assurance of the assumption of liability by the charter 8 school or the innovation zone consortium for the innovation 9 zone school . 10 14. The types and amounts of insurance coverage to be 11 obtained by the charter school or innovation zone consortium 12 for the innovation zone school . 13 15. A plan of operation to be implemented if the charter 14 school or innovation zone consortium revokes or fails to renew 15 its contract. 16 16. The means, costs, and plan for providing transportation 17 for students enrolled in the charter school or innovation zone 18 school . 19 17. The specific statutes, administrative rules, and school 20 board policies with which the charter school or innovation zone 21 school does not intend to comply. 22 Sec. 48. Section 256F.6, subsections 1 and 3, Code 2026, are 23 amended to read as follows: 24 1. a. An approved charter school or innovation zone school 25 application shall constitute an agreement, the terms of which 26 shall, at a minimum, be the terms of a four-year five-year 27 enforceable, renewable contract between a school board , or the 28 boards participating in an innovation zone consortium, and the 29 state board. The contract shall include an operating agreement 30 for the operation of the charter school or innovation zone 31 school. The terms of the contract may be revised at any time 32 with the approval of both the state board and the school board 33 or the boards participating in the innovation zone consortium , 34 whether or not the stated provisions of the contract are being 35 -24- LSB 5427SZ (2) 91 jda/jh 24/ 63
S.F. 2501 fulfilled. The contract must include all of the following: 1 (1) An operating agreement for the operation of the charter 2 school. 3 (2) A performance framework as required under section 4 256F.4, subsection 2, paragraph “v” . 5 b. A contract may be renewed by agreement of the school 6 board or the boards participating in an innovation zone 7 consortium, as applicable, and the state board. 8 c. The charter school or innovation zone consortium shall 9 provide parents and guardians of students enrolled in the 10 charter school or innovation zone school with a copy of the 11 charter school or innovation zone school application approved 12 pursuant to section 256F.5 . 13 3. The state board of education shall provide by rule for 14 the ongoing review of each party’s compliance with a contract 15 entered into in accordance with this chapter subchapter . 16 Sec. 49. Section 256F.7, Code 2026, is amended to read as 17 follows: 18 256F.7 Employment and related matters. 19 1. A charter school or the boards participating in an 20 innovation zone consortium shall employ or contract with 21 necessary teachers and administrators, as defined in section 22 256.145 , who hold a valid license with an endorsement for the 23 type of service for which the teacher or administrator is 24 employed. 25 2. The school board or innovation zone consortium, as 26 specified in the application , in consultation with the advisory 27 council, shall decide matters related to the operation of the 28 charter school or innovation zone school , including budgeting, 29 curriculum, and operating procedures. 30 3. a. Employees of a charter school shall be considered 31 employees of the school district. 32 b. Employees of an innovation zone school shall be 33 considered employees of a board participating in the innovation 34 zone consortium. 35 -25- LSB 5427SZ (2) 91 jda/jh 25/ 63
S.F. 2501 Sec. 50. Section 256F.8, subsections 1, 2, 3, 4, and 6, Code 1 2026, are amended to read as follows: 2 1. A contract for the establishment of a charter school or 3 innovation zone school may be revoked by the state board , or 4 the school board that established the charter school , or the 5 innovation zone consortium that established the innovation zone 6 school if the appropriate board or consortium determines that 7 one or more of the following occurred: 8 a. Failure of the charter school or innovation zone school 9 to abide by and meet the provisions set forth in the contract, 10 including educational goals. 11 b. Failure of the charter school or innovation zone school 12 to comply with all applicable law. 13 c. Failure of the charter school or innovation zone school 14 to meet generally accepted public sector accounting principles. 15 d. The existence of one or more other grounds for revocation 16 as specified in the contract. 17 e. Assessment of student progress, which is administered 18 in accordance with state and locally determined indicators 19 established pursuant to rules adopted by the state board, 20 does not show improvement in student progress over that 21 which existed in the same student population prior to the 22 establishment of the charter school or the innovation zone 23 school . 24 2. The decision by a school board or an innovation zone 25 consortium to revoke or to fail to take action to renew a 26 charter school or innovation zone school contract is subject to 27 appeal under procedures set forth in chapter 290 . 28 3. A school board or a board participating in an innovation 29 zone consortium that is considering revocation or nonrenewal 30 of a charter school or innovation zone school contract shall 31 notify the advisory council, the parents or guardians of the 32 students enrolled in the charter school or innovation zone 33 school , and the teachers and administrators employed by the 34 charter school or innovation zone school , sixty days prior to 35 -26- LSB 5427SZ (2) 91 jda/jh 26/ 63
S.F. 2501 revoking or the date by which the contract must be renewed, but 1 not later than the last day of classes in the school year. 2 4. If the state board determines that a charter school or 3 innovation zone school is in substantial violation of the terms 4 of the contract, the state board shall notify the school board 5 or innovation zone consortium and the advisory council of its 6 intention to revoke the contract at least sixty days prior to 7 revoking a contract and the school board or the school boards 8 participating in the innovation zone consortium shall assume 9 oversight authority, operational authority, or both oversight 10 and operational authority. The notice shall state the 11 grounds for the proposed action in writing and in reasonable 12 detail. The school board or innovation zone consortium may 13 request in writing an informal hearing before the state board 14 within fourteen days of receiving notice of revocation of 15 the contract. Upon receiving a timely written request for a 16 hearing, the state board shall give reasonable notice to the 17 school board or innovation zone consortium of the hearing 18 date. The state board shall conduct an informal hearing before 19 taking final action. Final action to revoke a contract shall 20 be taken in a manner least disruptive to students enrolled in 21 the charter school or innovation zone school . The state board 22 shall take final action to revoke or approve continuation of 23 a contract by the last day of classes in the school year. If 24 the final action to revoke a contract under this section occurs 25 prior to the last day of classes in the school year, a charter 26 school or innovation zone school student may enroll in the 27 resident district. 28 6. A school board revoking a contract or a school board , 29 innovation zone consortium, or advisory council that fails to 30 renew a contract under this chapter subchapter is not liable 31 for that action to the charter school or innovation zone 32 school , a student enrolled in the charter school or innovation 33 zone school or the student’s parent or guardian, or any other 34 person. 35 -27- LSB 5427SZ (2) 91 jda/jh 27/ 63
S.F. 2501 Sec. 51. Section 256F.9, Code 2026, is amended to read as 1 follows: 2 256F.9 Procedures after revocation —— student enrollment. 3 If a charter school or innovation zone school contract 4 is revoked in accordance with this chapter subchapter , a 5 nonresident student who attended the school, and any siblings 6 of the student may submit an application to another school 7 district according to section 282.18 . Applications and notices 8 required by section 282.18 shall be processed and provided in a 9 prompt manner. 10 Sec. 52. Section 256F.10, Code 2026, is amended to read as 11 follows: 12 256F.10 Reports. 13 1. A charter school or innovation zone school shall 14 report at least annually to the school board or innovation 15 zone consortium , advisory council, and the state board the 16 information required by the school board or innovation zone 17 consortium , advisory council, or the state board. The reports 18 are public records subject to chapter 22 . 19 2. Not later than December 1 annually, the state board shall 20 submit a comprehensive report with findings and recommendations 21 to the general assembly. The report shall evaluate the state’s 22 charter school and innovation zone school programs generally, 23 including but not limited to an evaluation of whether the 24 charter schools and innovation zone schools are fulfilling the 25 purposes set forth in section 256F.4, subsection 2 . The report 26 also shall contain, for each charter school or innovation 27 zone school , a copy of the charter school or innovation 28 zone school’s mission statement, attendance statistics and 29 dropout rate, aggregate assessment test scores, projections of 30 financial stability, the number and qualifications of teachers 31 and administrators, and number of and comments on supervisory 32 visits by the department of education. 33 Sec. 53. Section 256F.12, Code 2026, is amended to read as 34 follows: 35 -28- LSB 5427SZ (2) 91 jda/jh 28/ 63
S.F. 2501 256F.12 Operation of existing charter schools. 1 Charter schools established under this chapter subchapter 2 prior to July 1, 2021, shall continue to operate under and be 3 subject to the requirements of this chapter subchapter and 4 shall not be subject to chapter 256E subchapter I . 5 Sec. 54. Section 257.6, subsection 1, paragraph a, 6 subparagraph (9), Code 2026, is amended to read as follows: 7 (9) Resident pupils enrolled in a charter school under 8 chapter 256E or 256F . 9 Sec. 55. Section 280.36, subsection 3, Code 2026, is amended 10 to read as follows: 11 3. The board of directors of a school district or the 12 authorities in charge of an accredited nonpublic school 13 may enter into an agreement with another school district, 14 accredited nonpublic school, or charter school , or innovation 15 zone school to create a multidisciplinary school safety 16 assessment team that shall coordinate resources among the 17 schools and assess and intervene when a student enrolled in 18 either school exhibits behavior that may pose a threat to 19 the safety of either school, employees of either school, or 20 students enrolled in either school. 21 Sec. 56. Section 282.9, subsection 1, Code 2026, is amended 22 to read as follows: 23 1. Notwithstanding sections 256E.7 , 256F.4 256E.23 , 24 275.55A , and 282.18 , or any other provision to the contrary, 25 prior to knowingly enrolling an individual who is required 26 to register as a sex offender under chapter 692A , but who is 27 otherwise eligible to enroll in a public school, the board of 28 directors of a school district shall determine the educational 29 placement of the individual. Upon receipt of notice that a 30 student who is enrolled in the district is required to register 31 as a sex offender under chapter 692A , the board shall determine 32 the educational placement of the student. The tentative agenda 33 for the meeting of the board of directors at which the board 34 will consider such enrollment or educational placement shall 35 -29- LSB 5427SZ (2) 91 jda/jh 29/ 63
S.F. 2501 specifically state that the board is considering the enrollment 1 or educational placement of an individual who is required 2 to register as a sex offender under chapter 692A . If the 3 individual is denied enrollment in a school district under this 4 section , the school district of residence shall provide the 5 individual with educational services in an alternative setting. 6 Sec. 57. Section 282.18, subsection 11, paragraph a, 7 subparagraph (8), Code 2026, is amended to read as follows: 8 (8) If the pupil participates in open enrollment because 9 of circumstances that meet the definition of good cause. For 10 purposes of this section , “good cause” means a change in a 11 child’s residence due to a change in family residence, a change 12 in a child’s residence from the residence of one parent or 13 guardian to the residence of a different parent or guardian, a 14 change in the state in which the family residence is located, 15 a change in a child’s parents’ marital status, a guardianship 16 or custody proceeding, placement in foster care, adoption, 17 participation in a foreign exchange program, initial placement 18 of a prekindergarten student in a special education program 19 requiring specially designed instruction, or participation in 20 a substance use disorder or mental health treatment program, 21 a change in the status of a child’s resident district such 22 as removal of accreditation by the state board, surrender of 23 accreditation, or permanent closure of a nonpublic school, 24 revocation of a charter school contract as provided in section 25 256E.10 or 256F.8 256E.27 , the failure of negotiations for a 26 whole grade sharing, reorganization, dissolution agreement, or 27 the rejection of a current whole grade sharing agreement, or 28 reorganization plan. 29 Sec. 58. Section 297.24, subsection 3, paragraph d, Code 30 2026, is amended by striking the paragraph. 31 Sec. 59. CODE EDITOR DIRECTIVE —— TRANSFERS —— NEW 32 SUBCHAPTERS. 33 1. The Code editor is directed to make the following 34 transfers: 35 -30- LSB 5427SZ (2) 91 jda/jh 30/ 63
S.F. 2501 a. Section 256F.1 to section 256E.20. 1 b. Section 256F.2 to section 256E.21. 2 c. Section 256F.3 to section 256E.22. 3 d. Section 256F.4 to section 256E.23. 4 e. Section 256F.5 to section 256E.24. 5 f. Section 256F.6 to section 256E.25. 6 g. Section 256F.7 to section 256E.26. 7 h. Section 256F.8 to section 256E.27. 8 i. Section 256F.9 to section 256E.28. 9 j. Section 256F.10 to section 256E.29. 10 k. Section 256F.12 to section 256E.30. 11 2. The Code editor is directed to create two new subchapters 12 in chapter 256E as follows: 13 a. Subchapter I shall be entitled “Charter Schools” and 14 include sections 256E.1 through 256E.13. 15 b. Subchapter II shall be entitled “Legacy Charter Schools” 16 and include sections 256E.20 through 256E.30. 17 3. The Code editor is directed to make changes in any Code 18 sections or other noncodified enactments amended or enacted 19 by any other Act to correspond with the changes made in this 20 Act if there appears to be no doubt as to the proper method of 21 making the changes and the changes would not be contrary to or 22 inconsistent with the purposes of this Act or any other Act. 23 Sec. 60. APPLICABILITY. The following applies to charter 24 school contracts that are executed or renewed pursuant to 25 chapter 256E on or after the effective date of this division 26 of this Act: 27 The section of this division of this Act amending section 28 256E.6. 29 Sec. 61. APPLICABILITY. The following apply to charter 30 school contracts entered into under section 256F.6 between a 31 school board and the state board of education that are renewed 32 on or after the effective date of this division of this Act: 33 1. The section of this division of this Act amending 34 section 256F.4, subsection 2, by requiring charter schools to 35 -31- LSB 5427SZ (2) 91 jda/jh 31/ 63
S.F. 2501 incorporate a performance framework into the charter school 1 contract. 2 2. The section of this division of this Act amending section 3 256F.6, subsection 1, paragraph “a”. 4 DIVISION II 5 FUNDING AND AREA EDUCATION AGENCY SERVICES 6 Sec. 62. Section 256E.8, subsection 2, paragraph a, Code 7 2026, is amended to read as follows: 8 a. The charter school in which the student is enrolled 9 shall receive under paragraph “c” an amount equal to the sum 10 of the regular program state cost per pupil for the budget 11 year plus the teacher leadership supplement state cost per 12 pupil, the teacher salary supplement state cost per pupil, the 13 professional development supplement state cost per pupil, and 14 the early intervention supplement state cost per pupil for 15 the budget year as provided in section 257.9 plus any moneys 16 that would be due to the school district of residence for the 17 student as a result of the non-English speaking weighting under 18 section 280.4, subsection 3 , for the budget year multiplied by 19 the state cost per pupil for the budget year. If a student 20 is an eligible pupil under section 261E.6 , the charter school 21 shall pay the tuition reimbursement amount to an eligible 22 postsecondary institution as provided in section 261E.7 . 23 Sec. 63. Section 257.35, Code 2026, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 21A. The director of the department of 26 management may deduct the following from the state aid due to 27 each school district pursuant to this chapter and shall pay 28 the amounts to the respective area education agencies on a 29 monthly basis from September 15 through June 15 during each 30 school year for purposes of providing services to students 31 enrolled in charter schools established pursuant to chapter 32 256E, subchapter I, within the boundaries of the area education 33 agency: 34 a. The amount calculated for media services for the school 35 -32- LSB 5427SZ (2) 91 jda/jh 32/ 63
S.F. 2501 district that is attributable to the number of students 1 enrolled in charter schools established pursuant to chapter 2 256E, subchapter I, within the school district who are provided 3 with media services by an area education agency. 4 b. The amount calculated for educational services for the 5 school district that is attributable to the number of students 6 enrolled in charter schools established pursuant to chapter 7 256E, subchapter I, within the school district who are provided 8 with educational services by an area education agency. 9 Sec. 64. Section 273.2, subsection 3, paragraph a, Code 10 2026, is amended to read as follows: 11 a. The area education agency shall furnish educational 12 services and programs as provided in section 273.1 , this 13 section , sections 273.3 through 273.8 , and chapter 256B to 14 pupils enrolled in public or nonpublic schools which are on 15 the list of accredited schools pursuant to section 256.11 , and 16 to pupils enrolled in charter schools established pursuant 17 to chapter 256E, subchapter I, which request to receive such 18 services. The programs and services provided shall be at least 19 commensurate with programs and services existing on July 1, 20 1974. The programs and services provided to pupils enrolled 21 in nonpublic schools shall be comparable to programs and 22 services provided to pupils enrolled in public schools within 23 constitutional guidelines. 24 Sec. 65. Section 273.2, subsection 4, Code 2026, is amended 25 to read as follows: 26 4. The area education agency shall provide for special 27 education services and media services for school districts 28 and shall encourage and assist school districts to establish 29 programs for gifted and talented children. The area education 30 agency shall provide for media services for charter schools 31 established pursuant to chapter 256E, subchapter I. The area 32 education agency shall assist in facilitating interlibrary 33 loans of materials between school districts and other 34 libraries. 35 -33- LSB 5427SZ (2) 91 jda/jh 33/ 63
S.F. 2501 Sec. 66. APPLICABILITY. The following apply to school 1 budget years beginning on or after July 1, 2026: 2 1. The section of this division of this Act amending section 3 256E.8, subsection 2, paragraph “a”. 4 2. The section of this division of this Act amending section 5 257.35. 6 DIVISION III 7 EXTRACURRICULAR ACTIVITIES 8 Sec. 67. Section 280.13D, Code 2026, is amended to read as 9 follows: 10 280.13D Participation in extracurricular interscholastic 11 athletic contests or competitions and extracurricular activities 12 provided by public schools. 13 1. a. The board of directors of a school district shall 14 allow a student who resides within the school district, and 15 who is enrolled in a nonpublic school or a charter school 16 established pursuant to chapter 256E, subchapter I , to 17 participate in any extracurricular interscholastic athletic 18 contest or competition , and any extracurricular activity, 19 including theater, show choir, and band, that is provided by 20 the school district pursuant to the terms of an agreement 21 between the board of directors of the school district and the 22 authorities in charge of the nonpublic school or the governing 23 board of the charter school, as applicable, that provides 24 for the eligibility of the student, if all of the following 25 criteria are satisfied: 26 (1) The extracurricular interscholastic athletic contest or 27 competition or extracurricular activity has not been provided 28 by the nonpublic school or the charter school during the two 29 immediately preceding school years. 30 (2) The nonpublic school or charter school has not entered 31 into an agreement under section 280.13A with another school 32 district, nonpublic school, or charter school that provides 33 for the eligibility of students enrolled in the nonpublic 34 school or charter school to participate in the extracurricular 35 -34- LSB 5427SZ (2) 91 jda/jh 34/ 63
S.F. 2501 interscholastic athletic contest or competition or any 1 extracurricular activity that is being provided by that school 2 district, nonpublic school, or charter school. 3 b. The board of directors of a school district shall allow 4 a student who resides within a contiguous school district, 5 and who is enrolled in a nonpublic school or a charter school 6 established pursuant to chapter 256E, subchapter I , to 7 participate in any extracurricular interscholastic athletic 8 contest or competition and any extracurricular activity that 9 is provided by the school district pursuant to the terms of an 10 agreement between the board of directors of the school district 11 and the authorities in charge of the nonpublic school or the 12 governing board of the charter school, as applicable, that 13 provides for the eligibility of the student, if all of the 14 following criteria are satisfied: 15 (1) The extracurricular interscholastic athletic contest or 16 competition or extracurricular activity has not been provided 17 by the nonpublic school or charter school, or by the student’s 18 school district of residence , during the two immediately 19 preceding school years. 20 (2) The nonpublic school or charter school has not 21 entered into an agreement under section 280.13A with another 22 school district, nonpublic school, or charter school that 23 provides for the eligibility of students enrolled in the 24 nonpublic school or charter school to participate in the 25 extracurricular interscholastic athletic contest or competition 26 or extracurricular activity that is being provided by that 27 school district, nonpublic school, or charter school. 28 c. If the board of directors of a school district has 29 established a fee for the cost of a student’s participation 30 in an extracurricular interscholastic athletic contest or 31 competition or extracurricular activity , a student who is 32 enrolled in a nonpublic school or a charter school established 33 pursuant to chapter 256E, subchapter I, and is participating 34 in a contest or competition an extracurricular interscholastic 35 -35- LSB 5427SZ (2) 91 jda/jh 35/ 63
S.F. 2501 contest or competition or extracurricular activity at a public 1 school pursuant to paragraph “a” or “b” , or the student’s parent 2 or guardian, shall be responsible for the payment of such fee. 3 The amount of such fee shall not exceed the amount of the fee 4 the board of directors of the school district has established 5 for students who are enrolled in the school district. 6 2. A student who is enrolled in a nonpublic school or 7 a charter school established pursuant to chapter 256E, 8 subchapter I, and is participating in a contest or competition 9 an extracurricular interscholastic contest or competition 10 or extracurricular activity at a public school pursuant to 11 subsection 1 , paragraph “a” or “b” , shall participate under 12 the same conditions as a student who is enrolled in the school 13 district, including meeting the school district’s student code 14 of conduct requirements. 15 3. A student who participates in an extracurricular 16 interscholastic athletic contest or competition or 17 extracurricular activity pursuant to this section shall be 18 deemed to satisfy the residence requirements for purposes of 19 section 256.46 . 20 DIVISION IV 21 DRIVER EDUCATION 22 Sec. 68. Section 321.178, subsection 1, paragraph c, Code 23 2026, is amended to read as follows: 24 c. (1) (a) Every public school district in Iowa shall 25 offer or make available to all students residing in the school 26 district, or Iowa students attending a nonpublic school or 27 receiving competent private instruction or independent private 28 instruction as defined in section 299A.1 , in the district, an 29 approved course in driver education. 30 (b) (i) Every public school district in Iowa shall offer 31 or make available to all Iowa students residing in the school 32 district who attend a charter school established pursuant 33 to chapter 256E, subchapter I, an approved course in driver 34 education pursuant to policies established by the public school 35 -36- LSB 5427SZ (2) 91 jda/jh 36/ 63
S.F. 2501 district. The charter school shall be responsible for the 1 payment of all of the school district’s costs associated with 2 providing the approved course in driver education to such 3 students. 4 (ii) Every charter school established pursuant to chapter 5 256E, subchapter I, shall offer or make available to all 6 students attending the charter school an approved course in 7 driver education. 8 (c) The receiving district shall be the school district 9 responsible for making driver education available to a student 10 participating in open enrollment under section 282.18 . 11 (2) The courses may be offered at sites other than at the 12 public school or charter school , including nonpublic school 13 facilities within the public school districts. An approved 14 course offered during the summer months, on Saturdays, after 15 regular school hours during the regular terms or partly in one 16 term or summer vacation period and partly in the succeeding 17 term or summer vacation period, as the case may be, shall 18 satisfy the requirements of this section to the same extent 19 as an approved course offered during the regular school hours 20 of the school term. A student who successfully completes and 21 obtains certification in an approved course in driver education 22 or an approved course in motorcycle education may, upon proof 23 of such fact, be excused from any field test which the student 24 would otherwise be required to take in demonstrating the 25 student’s ability to operate a motor vehicle. A student shall 26 not be excused from any field test if a parent, guardian, 27 or instructor requests that a test be administered. A final 28 field test prior to a student’s completion of an approved 29 course shall be administered by a person qualified to provide 30 street or highway driving instruction under paragraph “b” , 31 subparagraph (2). 32 DIVISION V 33 IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM 34 Sec. 69. Section 97B.1A, subsection 8, paragraph a, Code 35 -37- LSB 5427SZ (2) 91 jda/jh 37/ 63
S.F. 2501 2026, is amended by adding the following new subparagraph: 1 NEW SUBPARAGRAPH . (13) Persons employed by a charter 2 school established pursuant to chapter 256E, subchapter I, that 3 satisfies all applicable requirements under federal law for 4 participation in the retirement system. 5 Sec. 70. Section 97B.1A, subsection 9, paragraph a, Code 6 2026, is amended to read as follows: 7 a. “Employer” means the state of Iowa, the counties, 8 municipalities, agencies, public school districts, charter 9 schools established pursuant to chapter 256E, subchapter 10 I, that satisfy all applicable requirements under federal 11 law for participation in the retirement system, all 12 political subdivisions, and all of their departments and 13 instrumentalities, including area agencies on aging, other than 14 those employing persons as specified in subsection 8 , paragraph 15 “b” , subparagraph (7), and joint planning commissions created 16 under chapter 28E or 28I . 17 Sec. 71. Section 256E.11, subsection 2, Code 2026, is 18 amended to read as follows: 19 2. In the event of a charter school closure, the assets of 20 the charter school shall be used first to satisfy outstanding 21 payroll obligations for employees of the school and any 22 liabilities due and owing to the Iowa public employees’ 23 retirement system , then to creditors of the school, then to the 24 public school district in which the charter school operated, 25 if applicable, and then to the state general fund. If the 26 assets of the charter school are insufficient to pay all 27 obligations of the charter school, the prioritization of the 28 distribution of assets shall be consistent with this subsection 29 and otherwise determined by the district court. 30 DIVISION VI 31 CHARTER SCHOOL FACILITIES REVOLVING LOAN PROGRAM 32 Sec. 72. NEW SECTION . 16.163 Charter school facilities 33 revolving loan program fund —— credit enhancement agreements. 34 1. a. A charter school facilities revolving loan program 35 -38- LSB 5427SZ (2) 91 jda/jh 38/ 63
S.F. 2501 fund is created within the authority to assist charter 1 schools established pursuant to chapter 256E, subchapter I, 2 in acquiring suitable school facilities. The moneys in the 3 charter school facilities revolving loan program fund are 4 appropriated to the authority for use in the development and 5 operation of a charter school facilities revolving loan program 6 to assist charter schools in purchasing, acquiring, developing, 7 reconstructing, remodeling, or replacing school buildings. 8 b. Moneys transferred by the authority for deposit 9 in the charter school facilities revolving loan program 10 fund, moneys appropriated to the charter school facilities 11 revolving loan program, and any other moneys available to 12 and obtained or accepted by the authority for placement in 13 the charter school facilities revolving loan program fund 14 shall be deposited in the fund. Additionally, payment of 15 interest, recaptures of awards, and other repayments to the 16 charter school facilities revolving loan program fund shall 17 be deposited in the fund. Notwithstanding section 12C.7, 18 subsection 2, interest or earnings on moneys in the charter 19 school facilities revolving loan program fund shall be credited 20 to the fund. Notwithstanding section 8.33, moneys that remain 21 unencumbered or unobligated at the end of the fiscal year shall 22 not revert but shall remain available for the same purpose in 23 the succeeding fiscal year. 24 c. The authority shall annually allocate moneys available in 25 the charter school facilities revolving loan program fund to 26 assist charter schools in purchasing, acquiring, developing, 27 reconstructing, remodeling, or replacing school buildings. 28 2. In addition to the charter school facilities revolving 29 loan program authorized pursuant to subsection 1, the authority 30 is authorized to make or enter into a liquidity or credit 31 enhancement agreement with a charter school established 32 pursuant to chapter 256E, subchapter I, to assist the charter 33 school in purchasing, acquiring, developing, reconstructing, 34 remodeling, or replacing school buildings. 35 -39- LSB 5427SZ (2) 91 jda/jh 39/ 63
S.F. 2501 Sec. 73. CODE EDITOR DIRECTIVE. The Code editor shall 1 designate section 16.163, as enacted in this division of 2 this Act, as a new section within chapter 16, subchapter X, 3 part 6, and may redesignate the preexisting part and correct 4 internal references as necessary, including references to part 5 headnotes. 6 DIVISION VII 7 EDUCATION SAVINGS ACCOUNTS 8 Sec. 74. Section 257.11B, subsections 3 and 4, Code 2026, 9 are amended to read as follows: 10 3. a. (1) On or after January 1, but on or before June 11 30, preceding the school year for which the education savings 12 account payment is requested, the parent or guardian of an 13 eligible pupil may request an education savings account payment 14 by submitting an application to the department of education. 15 (2) On or after October 15, but on or before November 15, 16 preceding the semester for which the education savings account 17 payment is requested, the parent or guardian of an eligible 18 pupil may request an education savings account payment by 19 submitting an application to the department of education. 20 b. Within thirty days following Following submission of an 21 application, the department of education or third-party entity 22 shall notify the parent or guardian of each pupil approved for 23 the following school year or semester and specify the amount of 24 the education savings account payment for the pupil, if known 25 at the time of the notice. As soon as practical following the 26 processing of all applications, the department of education or 27 third-party entity shall determine the number of pupils in each 28 school district approved for the school budget year and provide 29 such information to the department of management. 30 c. Education savings account payments shall only be 31 approved for one school year or one semester, as applicable, 32 and applications must be submitted annually for payments in 33 subsequent school years. 34 4. Each education savings account payment shall be equal to 35 -40- LSB 5427SZ (2) 91 jda/jh 40/ 63
S.F. 2501 the regular program state cost per pupil for the same school 1 budget year ; provided, however, that an education savings 2 account payment shall be equal to fifty percent of the regular 3 program state cost per pupil for the same school budget year if 4 the pupil’s parent or guardian submitted an application under 5 subsection 3, paragraph “a” , subparagraph (2) . 6 DIVISION VIII 7 INDEPENDENT ACCREDITATION 8 Sec. 75. Section 256.11, subsection 16, Code 2026, is 9 amended by adding the following new paragraphs: 10 NEW PARAGRAPH . d. (1) If an approved independent 11 accrediting agency deaccredits a nonpublic school, the 12 nonpublic school shall not seek accreditation from an 13 independent accrediting agency that is on the approved list 14 pursuant to paragraph “a” for a period of three years beginning 15 on the date the approved independent accrediting agency 16 deaccredited the nonpublic school. 17 (2) If an approved independent accrediting agency 18 deaccredits a nonpublic school, the nonpublic school may 19 immediately seek accreditation under subsection 10. 20 NEW PARAGRAPH . e. (1) This subsection shall not be 21 construed to authorize the state or any political subdivision 22 of the state to exercise authority over any nonpublic school or 23 construed to require a nonpublic school to modify its academic 24 standards for admission or educational program. 25 (2) This section shall not be construed to expand the 26 authority of the state or any political subdivision of the 27 state to impose regulations upon any nonpublic school that are 28 not necessary to implement this section. 29 (3) Rules adopted by the state board of education to 30 implement this section that impose an undue burden on a 31 nonpublic school are invalid. 32 (4) A nonpublic school shall be given the maximum freedom 33 possible to provide for the educational needs of the school’s 34 students, consistent with state and federal law. 35 -41- LSB 5427SZ (2) 91 jda/jh 41/ 63
S.F. 2501 DIVISION IX 1 SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL 2 REQUIREMENTS 3 Sec. 76. DEPARTMENT OF EDUCATION —— SCHEDULE OF REQUIRED 4 TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS. 5 1. The department of education shall convene and provide 6 administrative support to a task force that shall study the 7 training programs in which teachers in this state are required 8 to participate pursuant to state law and the requirements 9 associated with renewing a teaching license. 10 2. Any expense incurred by a member of the task force 11 shall be the responsibility of the individual member or the 12 respective entity represented by the member. 13 3. The task force shall submit its findings and 14 recommendations to the general assembly on or before 15 December 31, 2026. The recommendations must include specific 16 recommendations related to how to change current law to create 17 a more manageable training program schedule and licensure 18 renewal requirement schedule for teachers. 19 DIVISION X 20 STATEWIDE PRESCHOOL PROGRAM 21 Sec. 77. Section 256.163, subsection 1, paragraph c, Code 22 2026, is amended to read as follows: 23 c. Preschool programs at school districts approved to 24 participate in the preschool program , or at community-based 25 providers approved to directly participate in the preschool 26 program, under chapter 256C . 27 Sec. 78. Section 256C.1, subsection 1, Code 2026, is amended 28 to read as follows: 29 1. “Approved local program” means a school district’s 30 program or community-based provider’s program for four-year-old 31 children approved by the department of education to provide 32 high quality high-quality preschool instruction. 33 Sec. 79. Section 256C.1, Code 2026, is amended by adding the 34 following new subsection: 35 -42- LSB 5427SZ (2) 91 jda/jh 42/ 63
S.F. 2501 NEW SUBSECTION . 1A. Community-based provider approved 1 to directly participate in the preschool program” means a 2 community-based provider that meets the community-based 3 provider requirements under section 256C.3 and has been 4 approved by the department to directly participate in the 5 preschool program. “Community-based provider approved to 6 directly participate in the preschool program” does not mean a 7 community-based provider that partners with a school district’s 8 approved local program. 9 Sec. 80. Section 256C.3, subsection 1, paragraph b, Code 10 2026, is amended to read as follows: 11 b. If space and funding are available, including funding 12 from another school district account or fund from which 13 preschool program expenditures are authorized by law, a school 14 district approved to participate in the preschool program or 15 community-based provider approved to directly participate in 16 the preschool program may enroll and pay the cost of attendance 17 for a younger or older child in the preschool program; however, 18 the child shall not be counted for state funding purposes. 19 Sec. 81. Section 256C.3, subsection 2, paragraph a, 20 subparagraph (1), Code 2026, is amended to read as follows: 21 (1) The individual is either employed by or under contract 22 with the school district , or with the community-based provider 23 approved to directly participate in the preschool program, that 24 is implementing the program. 25 Sec. 82. Section 256C.3, subsection 3, unnumbered paragraph 26 1, Code 2026, is amended to read as follows: 27 The state board shall adopt rules to further define the 28 following preschool program requirements which shall be used 29 to determine whether or not a local program implemented by a 30 school district approved to implement the preschool program or 31 a community-based provider directly approved to implement the 32 preschool program qualifies as an approved local program: 33 Sec. 83. Section 256C.3, subsection 3, paragraph h, Code 34 2026, is amended to read as follows: 35 -43- LSB 5427SZ (2) 91 jda/jh 43/ 63
S.F. 2501 h. Provision for ensuring that children receiving care from 1 other child care arrangements can participate in the preschool 2 program with minimal disruption due to transportation and 3 movement from one site to another. The children participating 4 in the preschool program may be transported by the school 5 district or community-based provider to activities associated 6 with the program along with other children. 7 Sec. 84. Section 256C.3, Code 2026, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 4A. Community-based provider 10 requirements. The state board shall adopt rules to further 11 define the following requirements of community-based providers 12 approved to directly participate in the preschool program in 13 implementing the preschool program: 14 a. Methods of demonstrating readiness to implement 15 high-quality instruction in the local program shall be 16 identified. 17 b. A community-based provider shall participate in data 18 collection and performance measurement processes and reporting 19 as defined by rule. 20 c. Professional development for community-based provider 21 preschool teachers shall be addressed in the community-based 22 provider’s professional development plan. 23 Sec. 85. Section 256C.3, subsection 5, paragraphs a, b, and 24 d, Code 2026, are amended to read as follows: 25 a. The department shall implement an application and 26 selection process for school district participation and 27 community-based provider participation in the preschool program 28 that includes but is not limited to the enrollment requirements 29 provided under section 256C.4 . 30 b. The department shall track the progress of 31 students served by a school district preschool program or 32 community-based provider preschool program and the students’ 33 performance in elementary and secondary education. 34 d. The state board, in collaboration with the department, 35 -44- LSB 5427SZ (2) 91 jda/jh 44/ 63
S.F. 2501 shall ensure that the administrative rules adopted to support 1 the preschool program emphasize that children’s access to 2 the program is voluntary, that the preschool foundation aid 3 provided to a school district or a community-based provider is 4 provided based upon the enrollment of eligible students in the 5 school district’s or community-based provider’s local program 6 regardless of whether an eligible student is a resident of the 7 school district, and that agreements entered into by a school 8 district for the provision of programming in settings other 9 than the school district’s facilities are between the school 10 district and the private provider. 11 Sec. 86. Section 256C.4, subsection 1, Code 2026, is amended 12 to read as follows: 13 1. General State funding for school district approved to 14 participate in the preschool program . 15 a. State funding provided under the preschool program to 16 school districts shall be based upon the enrollment of eligible 17 students in the preschool programming provided by a school 18 district approved to participate in the preschool program. 19 b. A school district approved to participate in the 20 preschool program may authorize expenditures for the district’s 21 preschool programming from any of the revenue sources available 22 to the district from the sources listed in chapter 298A , 23 provided the expenditures are within the uses permitted for the 24 revenue source. In addition, the use of the revenue source 25 for preschool or prekindergarten programming must have been 26 approved prior to any expenditure from the revenue source for 27 the district’s approved local program. 28 c. Funding provided under the preschool program is intended 29 to supplement, not supplant, existing public funding for 30 preschool programming. 31 d. Preschool foundation aid funding shall not be commingled 32 with the other state aid payments made under section 257.16 33 to a school district and shall be accounted for by the local 34 school district separately from the other state aid payments. 35 -45- LSB 5427SZ (2) 91 jda/jh 45/ 63
S.F. 2501 Preschool foundation aid payments made to school districts are 1 miscellaneous income for purposes of chapter 257 . A school 2 district shall maintain a separate listing within its budget 3 for preschool foundation aid payments received and expenditures 4 made. A school district shall certify to the department of 5 education that preschool foundation aid funding received by 6 the school district was used to supplement, not supplant, 7 moneys otherwise received and used by the school district for 8 preschool programming. 9 e. Preschool foundation aid funding shall not be used 10 for the costs of constructing a facility in connection 11 with an approved local program. Preschool foundation aid 12 funding may be used by approved local programs and community 13 providers community-based providers that partner with a 14 school district’s local program for any purpose determined 15 by the board of directors of the school district to meet 16 standards for high-quality preschool instruction and for 17 purposes that directly or indirectly benefit students 18 enrolled in the approved local program, including but not 19 limited to professional development for preschool teachers, 20 instructional equipment and supplies, material and equipment 21 designed to develop pupils’ large and small motor skills, 22 translation services, playground equipment and repair costs, 23 food and beverages used by children in the approved local 24 program, safety equipment, facility rental fees, and for 25 other direct costs that enhance the approved local program, 26 including by contracting with community partners for any 27 such services. Preschool foundation aid funding may be used 28 by approved local programs for the costs of transportation 29 involving children participating in the preschool program. 30 The costs of transporting other children associated with the 31 preschool program or transported as provided in section 256C.3, 32 subsection 3 , paragraph “h” , may be prorated by the school 33 district. Preschool foundation aid funding received by an 34 approved local program that remains unexpended and unobligated 35 -46- LSB 5427SZ (2) 91 jda/jh 46/ 63
S.F. 2501 at the end of a fiscal year beginning on or after July 1, 2017, 1 shall be used to build the approved local program’s preschool 2 program capacity in the next succeeding fiscal year excluding 3 that portion of such unexpended and unobligated funding that 4 the school district authorizes for transfer for deposit in the 5 school district’s flexibility account established under section 6 298A.2, subsection 2 , if the statutory requirements for the use 7 of such funding are met. For purposes of determining whether a 8 school district has authority to transfer preschool foundation 9 aid funding for deposit in the school district’s flexibility 10 account established under section 298A.2, subsection 2 , the 11 school district must have provided preschool programming 12 during the fiscal year for which funding remains unexpended 13 and unobligated to all eligible students for whom a timely 14 application for enrollment was submitted. 15 f. The receipt of funding by a school district for the 16 purposes of this chapter , the need for additional funding 17 for the purposes of this chapter , or the enrollment count of 18 eligible students under this chapter shall not be considered 19 to be unusual circumstances, create an unusual need for 20 additional funds, or qualify under any other circumstances that 21 may be used by the school budget review committee to grant 22 supplemental aid to or establish a modified supplemental amount 23 for a school district under section 257.31 . 24 g. For the fiscal year beginning July 1, 2015, and each 25 succeeding fiscal year, of the amount of preschool foundation 26 aid received by a school district for a fiscal year in 27 accordance with section 257.16 , not more than five percent may 28 be used by the school district for administering the district’s 29 approved local program. Outreach activities and rent for 30 facilities not owned by the school district are permissive uses 31 of the administrative funds. 32 h. For the fiscal year beginning July 1, 2015, and each 33 succeeding fiscal year, of the amount of preschool foundation 34 aid received by a school district for a fiscal year in 35 -47- LSB 5427SZ (2) 91 jda/jh 47/ 63
S.F. 2501 accordance with section 257.16 , not less than ninety-five 1 percent of the per pupil amount shall be passed through to 2 a community-based provider for each pupil enrolled in the 3 district’s approved local program. For the fiscal year 4 beginning July 1, 2015, and each succeeding fiscal year, not 5 more than ten percent of the amount of preschool foundation aid 6 passed through to a community-based provider may be used by the 7 community-based provider for administrative costs. The costs 8 of outreach activities and rent for facilities not owned by 9 the school district are permissive administrative costs. The 10 costs of transportation involving children participating in the 11 preschool program and other children may be prorated. 12 Sec. 87. Section 256C.4, Code 2026, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 1A. State preschool funding for 15 community-based providers approved to directly participate in the 16 preschool program. 17 a. State preschool funding shall not be used for the costs 18 of constructing a facility in connection with an approved 19 local program. Preschool foundation aid funding may be used 20 by community-based providers for any purpose determined by the 21 community-based provider to meet standards for high-quality 22 preschool instruction and for purposes that directly or 23 indirectly benefit students enrolled in the approved local 24 program, including but not limited to professional development 25 for preschool teachers, instructional equipment and supplies, 26 material and equipment designed to develop pupils’ large and 27 small motor skills, translation services, playground equipment 28 and repair costs, food and beverages used by children in the 29 approved local program, safety equipment, facility rental fees, 30 and for other direct costs that enhance the approved local 31 program, including by contracting with other community partners 32 for any such services. State preschool funding may be used 33 by approved local programs for the costs of transportation 34 involving children participating in the preschool program. 35 -48- LSB 5427SZ (2) 91 jda/jh 48/ 63
S.F. 2501 Preschool foundation aid funding received by a community-based 1 provider approved to directly participate in the preschool 2 program that remains unexpended and unobligated at the end 3 of a fiscal year shall be used to build the community-based 4 provider’s capacity in the next succeeding fiscal year. 5 b. For the fiscal year beginning July 1, 2025, and each 6 succeeding fiscal year, of the amount of state preschool 7 funding received by a community-based provider approved 8 to directly participate in the preschool program for a 9 fiscal year, not more than five percent may be used by the 10 community-based provider for administering the approved local 11 program. Outreach activities and rent for facilities not owned 12 by the community-based provider are permissive uses of the 13 administrative funds. 14 Sec. 88. Section 256C.4, subsection 2, paragraph a, Code 15 2026, is amended to read as follows: 16 a. To be included as an eligible student in the enrollment 17 count of the preschool programming provided by a school 18 district approved to participate in the preschool program or 19 a community-based provider approved to directly participate 20 in the preschool program , a child must be four years of age 21 by September 15 in the base year and attending the school 22 district’s or community-based provider’s approved local 23 program. 24 Sec. 89. Section 256C.5, subsection 1, paragraphs c and d, 25 Code 2026, are amended to read as follows: 26 c. “Preschool budget enrollment” means the figure that is 27 equal to fifty percent of the actual enrollment of eligible 28 students in the preschool programming provided by a school 29 district approved to participate in the preschool program or a 30 community-based provider approved to directly participate in 31 the preschool program on October 1 of the base year, or the 32 first Monday in October if October 1 falls on a Saturday or 33 Sunday. 34 d. “Preschool foundation aid” means the product of the 35 -49- LSB 5427SZ (2) 91 jda/jh 49/ 63
S.F. 2501 regular program state cost per pupil for the budget year 1 multiplied by the school district’s preschool budget enrollment 2 or the community-based provider’s preschool budget enrollment . 3 Sec. 90. Section 256C.5, Code 2026, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 2A. Preschool foundation aid community-based 6 provider amount. For the initial school year for which a 7 community-based provider approved to directly participate in 8 the preschool program receives that approval and implements 9 the preschool program, the preschool foundation aid payable 10 to the community-based provider is the product of the regular 11 program state cost per pupil for the school year multiplied 12 by fifty percent of the community-based provider’s eligible 13 student enrollment on the date in the school year determined 14 by rule. For budget years subsequent to the initial year 15 for which a community-based provider approved to directly 16 participate in the preschool program receives that initial 17 approval and implements the preschool program, the preschool 18 foundation aid is the same as calculated pursuant to subsection 19 1. The funding for the preschool foundation aid payable to the 20 community-based provider shall be paid from the appropriation 21 made in section 257.16. Continuation of a community-based 22 provider’s participation in the preschool program for a second 23 or subsequent budget year is subject to the approval of the 24 department based upon the community-based provider’s compliance 25 with accountability provisions and the department’s on-site 26 review of the community-based provider’s implementation of the 27 preschool program. 28 Sec. 91. Section 256C.5, subsection 3, Code 2026, is amended 29 to read as follows: 30 3. Aid payments. 31 a. Preschool foundation aid shall be paid as part of the 32 state aid payments made to school districts in accordance with 33 section 257.16 . 34 b. Preschool foundation aid paid directly to community-based 35 -50- LSB 5427SZ (2) 91 jda/jh 50/ 63
S.F. 2501 providers shall be paid to the community-based provider in 1 monthly installments beginning on September 15 of a budget year 2 and ending on or about June 15 of the budget year as determined 3 by the department of management, taking into consideration the 4 relative budget and cash position of the state resources. 5 Sec. 92. EMERGENCY RULES. The state board of education may 6 adopt emergency rules under section 17A.4, subsection 3, and 7 section 17A.5, subsection 2, paragraph “b”, to implement the 8 provisions of this division of this Act and the rules shall 9 be effective immediately upon filing unless a later date is 10 specified in the rules. Any rules adopted in accordance with 11 this section shall also be published as a notice of intended 12 action as provided in section 17A.4. 13 DIVISION XI 14 SCHOOL TUITION ORGANIZATIONS —— PRESCHOOL STARTUP COSTS 15 Sec. 93. SCHOOL TUITION ORGANIZATIONS —— PRESCHOOL STARTUP 16 COSTS. 17 1. As used in this section: 18 a. “Preschool” means a nonpublic provider of preschool 19 services that commenced operations in 2025; is located in a 20 city with a population of greater than thirty-nine thousand 21 but less than forty thousand according to the 2020 federal 22 decennial census; and is located in a county with a population 23 of greater than one hundred fifty-five thousand but less than 24 one hundred eighty thousand, according to the 2020 federal 25 decennial census. 26 b. “School tuition organization” means the same as defined 27 in section 422.11S, subsection 6. 28 2. a. Notwithstanding any provision of law to the contrary, 29 a school tuition organization that represents schools located 30 in a county with a population of greater than one hundred 31 fifty-five thousand but less than one hundred eighty thousand, 32 according to the 2020 federal decennial census, may provide 33 funding to a preschool in an amount up to the costs the 34 preschool incurred in its first year of operation related to 35 -51- LSB 5427SZ (2) 91 jda/jh 51/ 63
S.F. 2501 the provision of preschool services. 1 b. Payments made pursuant to paragraph “a” shall not count 2 toward the allocation of annual revenue standards established 3 in section 422.11S, subsection 6, paragraph “c”, subparagraph 4 (1). 5 DIVISION XII 6 MISCELLANEOUS PROVISIONS 7 Sec. 94. Section 261E.8, subsection 2, paragraph a, Code 8 2026, is amended to read as follows: 9 a. (1) Students from accredited nonpublic schools , and 10 students receiving competent private instruction or independent 11 private instruction under chapter 299A , and students from 12 charter schools established pursuant to chapter 256E may access 13 the program through the school district in which the accredited 14 nonpublic school , or private institution , or charter school is 15 located. 16 (2) Students from charter schools established pursuant to 17 chapter 256E that provide educational instruction and course 18 content that is delivered entirely over the internet may access 19 the program through the students’ school district of residence. 20 Sec. 95. Section 282.18, subsection 2, paragraph b, Code 21 2026, is amended to read as follows: 22 b. (1) The board of the receiving district shall enroll the 23 pupil in a school in the receiving district for the following 24 school year unless the receiving district has insufficient 25 classroom space for the pupil or unless the receiving district 26 has prohibited the pupil from enrolling pursuant to subsection 27 14 . The board of directors of a receiving district may adopt 28 a policy granting the superintendent of the school district 29 authority to approve open enrollment applications. If the 30 request is granted, the board shall transmit a copy of the form 31 to the parent or guardian and the school district of residence 32 within five days after board action, but not later than June 33 1 of the preceding school year. The parent or guardian may 34 withdraw the request at any time prior to the start of the 35 -52- LSB 5427SZ (2) 91 jda/jh 52/ 63
S.F. 2501 school year. 1 (2) A denial of a request by the board of a receiving 2 district is not subject to appeal. The board of a receiving 3 district, or the superintendent of the receiving district 4 if the board of the receiving district has adopted a policy 5 granting the superintendent the authority to approve open 6 enrollment applications, shall document the reason for the 7 denial of a request and submit information related to the 8 denial to the department of education in a manner prescribed 9 by the department. 10 DIVISION XIII 11 IMMEDIATE EFFECTIVE DATE 12 Sec. 96. EFFECTIVE DATE. This Act, being deemed of 13 immediate importance, takes effect upon enactment. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to education, including by modifying 18 provisions related to charter school approval, contracts, 19 funding, and operations, services provided to charter 20 schools by area education agencies, charter school student 21 participation in extracurricular activities provided by 22 public schools, the Iowa public employees’ retirement system, 23 education savings accounts, independent accreditation, teacher 24 training and licensure, the statewide voluntary preschool 25 program, the district-to-community college sharing or 26 concurrent enrollment program, open enrollment, school tuition 27 organizations, and innovation zone schools. 28 DIVISION I —— CHARTER SCHOOLS. Current Code chapter 256F 29 authorizes school districts to join together to establish 30 an innovation zone school, which is a public school, 31 administered by a principal, that is designed to encourage 32 diverse approaches to learning and education and that operates 33 pursuant to the terms of a contract entered into between the 34 boards of directors of the school districts establishing the 35 -53- LSB 5427SZ (2) 91 jda/jh 53/ 63
S.F. 2501 innovation zone school and the state board of education. This 1 division modifies Code chapter 256F to remove all references to 2 innovation zone schools, which eliminates the authorization for 3 school districts to join together to establish an innovation 4 zone school. 5 The division transfers the Code sections within Code chapter 6 256F (charter schools and innovation zone schools) to a new 7 subchapter II within Code chapter 256E (charter schools —— 8 school board and founding group models). The division also 9 organizes the current Code sections within Code chapter 256E 10 into a new subchapter I. 11 Current law provides that the state board of education is 12 the sole authorizer of charter schools under Code section 256E, 13 subchapter I. The division provides that the university of 14 northern Iowa may also authorize charter schools under Code 15 section 256E, subchapter I. 16 Current law provides that the term of a charter school 17 contract entered into between the board of directors of a 18 school district that has established a charter school under 19 Code chapter 256F and the state board of education shall be 20 four years. The division provides that the term of such a 21 contract shall be five years. The division also requires such 22 a contract to incorporate a performance framework in the same 23 manner as a Code chapter 256E, subchapter I, charter school’s 24 contract is required to do so under Code section 256E.9 25 (performance framework). In addition, the division provides 26 that an approved charter school opens on the first day of the 27 school year that is two school years immediately subsequent 28 to the school year in which the charter school contract 29 is executed; provided, however, that the approved charter 30 school may open on the first day of the school year that is 31 immediately subsequent to the school year in which the charter 32 school contract is executed if the approved charter school 33 demonstrates adequate preparation to the state board. If the 34 charter school requires an opening delay of more than two 35 -54- LSB 5427SZ (2) 91 jda/jh 54/ 63
S.F. 2501 school years immediately subsequent to the school year in which 1 the charter school contract is executed, the charter school may 2 request an extension from the state board. These provisions 3 apply to charter school contracts under Code chapter 256F that 4 are renewed on or after the effective date of the division. 5 The division provides that the governing board of a charter 6 school that is approved under Code section 256E.5 (founding 7 group-state board model) is a local education agency for the 8 purpose of receiving federal funds for all attendance centers 9 that are under the jurisdiction of the governing board. 10 Code section 256.163 establishes requirements for teacher 11 licensure beyond a temporary initial license or an initial 12 license. Pursuant to current Code section 256.163, the 13 requirements for teacher licensure beyond a temporary initial 14 license or an initial license include successful completion 15 of a beginning teacher mentoring and induction program; two 16 years of successful teaching experience in a school district 17 with approved career paths, leadership roles, and compensation 18 framework; or evidence of not less than three years of 19 successful teaching experience at certain specified schools or 20 programs. The division modifies Code section 256.163 to add 21 charter schools, established pursuant to Code chapter 256E, 22 subchapter I, to this list of schools or programs, allowing a 23 teacher to attain licensure beyond a temporary initial license 24 or an initial license if the teacher completes not less than 25 three years of successful teaching experience at such a charter 26 school. 27 Current law provides that one of the purposes of charter 28 schools established under Code chapter 256E, subchapter I, is 29 to accelerate student learning to prevent learning loss during 30 the COVID-19 pandemic and other significant disruptions to 31 student learning. The division modifies this provision to 32 provide that one of the purposes of such charter schools is to 33 accelerate student learning to prevent learning loss during 34 significant disruptions to student learning. 35 -55- LSB 5427SZ (2) 91 jda/jh 55/ 63
S.F. 2501 The division makes conforming changes. 1 DIVISION II —— FUNDING AND AREA EDUCATION AGENCY SERVICES. 2 Currently, each student enrolled in a charter school under Code 3 chapter 256E, subchapter I, shall be counted, for state school 4 foundation purposes, in the student’s district of residence. 5 The department of education is then required to pay to the 6 charter school in which the student is enrolled an amount equal 7 to the sum of the regular program state cost per pupil for 8 the budget year plus other additional costs specified in Code 9 section 256E.8(2)(a). This division adds the teacher salary 10 supplement state cost per pupil to the amount required to be 11 paid to the Code chapter 256E, subchapter I, charter school. 12 This provision applies to school budget years beginning on or 13 after July 1, 2026. 14 The division requires area education agencies to provide 15 educational services and media services to students enrolled 16 in Code chapter 256E, subchapter I, charter schools. 17 Additionally, the division authorizes the department of 18 management to deduct both of the following from the state 19 aid due to each school district pursuant to Code chapter 20 257 (financing school programs) and pay the amounts to the 21 respective area education agencies for purposes of providing 22 services to students enrolled in Code chapter 256E, subchapter 23 I, charter schools within the boundaries of the area education 24 agency: the amount calculated for media services for 25 the school district that is attributable to the number of 26 students enrolled in Code chapter 256E, subchapter I, charter 27 schools within the school district who are provided with 28 media services by an area education agency, and the amount 29 calculated for educational services for the school district 30 that is attributable to the number of students enrolled in Code 31 chapter 256E, subchapter I, charter schools within the school 32 district who are provided with educational services by an area 33 education agency. This provision applies to school budget 34 years beginning on or after July 1, 2026. 35 -56- LSB 5427SZ (2) 91 jda/jh 56/ 63
S.F. 2501 DIVISION III —— EXTRACURRICULAR ACTIVITIES. This division 1 requires the board of directors of a school district to allow a 2 student who resides within the district, and who is enrolled 3 in a Code chapter 256E, subchapter I, charter school, to 4 participate in any extracurricular interscholastic athletic 5 contest or competition, and any extracurricular activity, 6 including theater, show choir, and band, that is provided by 7 the school district pursuant to the terms of an agreement 8 between the board of directors of the school district and the 9 governing board of the charter school if the extracurricular 10 interscholastic athletic contest or competition or 11 extracurricular activity has not been provided by the charter 12 school during the two immediately preceding school years and 13 if the charter school has not entered into an agreement under 14 Code section 280.13A (sharing interscholastic activities) 15 with another school district, nonpublic school, or charter 16 school that provides for the eligibility of students enrolled 17 in the charter school to participate in the extracurricular 18 interscholastic athletic contest or competition or any 19 extracurricular activity that is being provided by that school. 20 The division requires the board of directors of a school 21 district to allow a student who resides within a contiguous 22 school district, and who is enrolled in a Code chapter 23 256E, subchapter I, charter school, to participate in any 24 extracurricular interscholastic athletic contest or competition 25 and any extracurricular activity that is provided by the school 26 district pursuant to the terms of an agreement between the 27 board of directors of the school district and the governing 28 board of the charter school that provides for the eligibility 29 of the student if the extracurricular interscholastic athletic 30 contest or competition or extracurricular activity has not been 31 provided by the charter school, or by the student’s school 32 district of residence, during the two immediately preceding 33 school years, and if the charter school has not entered into 34 an agreement under Code section 280.13A with another school 35 -57- LSB 5427SZ (2) 91 jda/jh 57/ 63
S.F. 2501 district, nonpublic school, or charter school that provides 1 for the eligibility of students enrolled in the charter school 2 to participate in the extracurricular interscholastic athletic 3 contest or competition or extracurricular activity that is 4 being provided by that school. 5 The division provides that if the board of directors of 6 a school district has established a fee for the cost of a 7 student’s participation in an extracurricular interscholastic 8 athletic contest or competition or extracurricular activity, 9 a student who is enrolled in a Code chapter 256E, subchapter 10 I, charter school and is participating in an extracurricular 11 interscholastic athletic contest or competition or 12 extracurricular activity at a public school pursuant to the 13 division’s provisions, or the student’s parent or guardian, 14 shall be responsible for the payment of such fee. 15 The division requires a student who is enrolled in a Code 16 chapter 256E, subchapter I, charter school and is participating 17 in an extracurricular interscholastic athletic contest or 18 competition or extracurricular activity at a public school 19 pursuant to the division’s provisions to participate under the 20 same conditions as a student who is enrolled in the school 21 district, including meeting the school district’s student code 22 of conduct requirements. 23 The division provides that a student who participates in an 24 extracurricular interscholastic athletic contest or competition 25 or extracurricular activity pursuant to the division’s 26 provisions is deemed to satisfy the residence requirements for 27 purposes of Code section 256.46 (rules for participation in 28 extracurricular activities by certain children). 29 DIVISION IV —— DRIVER EDUCATION. Current law requires every 30 public school district in Iowa to offer or make available to 31 all students residing in the school district, including Iowa 32 students attending a nonpublic school or receiving competent 33 private instruction or independent private instruction, in 34 the district, an approved course in driver education. This 35 -58- LSB 5427SZ (2) 91 jda/jh 58/ 63
S.F. 2501 division requires Code chapter 256E, subchapter I, charter 1 schools to offer or make available such courses to students 2 attending the charter school. In addition, the division 3 requires every public school district in Iowa to offer or make 4 available to all Iowa students residing in the school district 5 who attend a Code chapter 256E, subchapter I, charter school 6 an approved course in driver education pursuant to policies 7 established by the school district. The charter school is 8 responsible for the payment of all of the school district’s 9 costs associated with providing the approved course in driver 10 education to such students. 11 DIVISION V —— IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM. 12 This division provides that persons employed by Code chapter 13 256E, subchapter I, charter schools that satisfy all applicable 14 requirements under federal law for participation in the 15 retirement system are employees for purposes of the provisions 16 of the Iowa public employees’ retirement system (IPERS). 17 Additionally, the division provides that Code chapter 256E, 18 subchapter I, charter schools that satisfy all applicable 19 requirements under federal law for participation in the 20 retirement system are employers for purposes of the provisions 21 of IPERS. 22 The division provides that in the event of a Code chapter 23 256E, subchapter I, charter school closure, the assets of the 24 charter school shall be, after payroll obligations but prior 25 to paying creditors, used to satisfy any liabilities due and 26 owing to IPERS. 27 DIVISION VI —— CHARTER SCHOOL FACILITIES REVOLVING LOAN 28 PROGRAM. This division establishes a charter school facilities 29 revolving loan program fund within the Iowa finance authority 30 (IFA) to assist Code chapter 256E, subchapter I, charter 31 schools in acquiring suitable school facilities. The moneys 32 in the funds are appropriated to the IFA for use in the 33 development and operation of a charter school facilities 34 revolving loan program to assist charter schools in purchasing, 35 -59- LSB 5427SZ (2) 91 jda/jh 59/ 63
S.F. 2501 acquiring, developing, reconstructing, remodeling, or replacing 1 school buildings. The division also allows the IFA to make or 2 enter into a liquidity or credit enhancement agreement with 3 a Code chapter 256E, subchapter I, charter school to assist 4 the charter school in purchasing, acquiring, developing, 5 reconstructing, remodeling, or replacing school buildings. 6 DIVISION VII —— EDUCATION SAVINGS ACCOUNTS. The education 7 savings account program is a program that provides funds to 8 pupils who attend nonpublic schools to pay for qualified 9 educational expenses, including but not limited to tuition, 10 tutoring or cognitive skill training fees, educational therapy 11 costs, software expenses, and expenses related to course 12 materials. Under current law, the parent or guardian of a 13 pupil is required to submit an application for payment under 14 the education savings account program to the department of 15 education on or after January 1, but on or before June 30, 16 preceding the school year for which the education savings 17 account payment is requested. This division allows the parent 18 or guardian of a pupil to submit such an application on or 19 after October 15, but on or before November 15, preceding the 20 semester for which the education savings account payment is 21 requested. Additionally, under current law, each education 22 savings account payment is equal to the regular program state 23 cost per pupil for the same school budget year. The division 24 provides that, if the parent or guardian of a pupil submitted 25 such an application on or after December 1, but on or before 26 December 20, preceding the semester for which the education 27 savings account payment is requested, the education savings 28 account payment for such pupil is equal to 50 percent of the 29 regular program state cost per pupil for the same school budget 30 year. 31 Current law requires the department of education or a 32 third-party entity to notify the parent or guardian of each 33 pupil approved for the following school year or semester of the 34 amount of the education savings account payment for the pupil 35 -60- LSB 5427SZ (2) 91 jda/jh 60/ 63
S.F. 2501 within 30 days after the submission of an application. The 1 division strikes this 30-day deadline. 2 The division makes conforming changes. 3 DIVISION VIII —— INDEPENDENT ACCREDITATION. This division 4 provides that if an approved independent accrediting agency 5 deaccredits a nonpublic school, the nonpublic school is 6 prohibited from seeking accrediting from an independent 7 accrediting agency for a period of three years. The division 8 authorizes such a nonpublic school to immediately seek 9 accreditation from the department of education. 10 Current law authorizes a nonpublic school to be accredited 11 by an approved independent accrediting agency instead of by the 12 state board of education if the nonpublic school is accredited 13 by an independent accrediting agency that is on a list of 14 approved independent accrediting agencies maintained by the 15 state board of education. The division provides that these 16 provisions shall not be construed to authorize the state or any 17 political subdivision of the state to exercise authority over 18 any nonpublic school or construed to require a nonpublic school 19 to modify its academic standards for admission or educational 20 program. The division also provides that these provisions 21 shall not be construed to expand the authority of the state or 22 any political subdivision of the state to impose regulations 23 upon any nonpublic school that are not necessary to implement 24 the state’s educational standards. The division provides that 25 rules adopted by the state board of education to implement 26 these provisions that impose an undue burden on a nonpublic 27 school are invalid. The division requires that a nonpublic 28 school shall be given the maximum freedom possible to provide 29 for the educational needs of the school’s students, consistent 30 with state and federal law. 31 DIVISION IX —— SCHEDULE OF TEACHER TRAININGS AND LICENSURE 32 RENEWAL REQUIREMENTS. This division requires the department 33 of education to convene a task force to study the training 34 programs in which teachers in this state are required to 35 -61- LSB 5427SZ (2) 91 jda/jh 61/ 63
S.F. 2501 participate pursuant to state law and the requirements 1 associated with renewing a teaching license. The task force 2 is required to submit its findings and recommendations to 3 the general assembly on or before December 31, 2026. The 4 recommendations must include specific recommendations related 5 to how to change current law to create a more manageable 6 training program schedule and licensure renewal requirement 7 schedule for teachers. 8 DIVISION X —— STATEWIDE PRESCHOOL PROGRAM. Under 9 current law, only school districts that meet certain 10 requirements established by the state board of education 11 are able to participate in the statewide preschool program 12 for four-year-old children established pursuant to Code 13 chapter 256C, although school districts may contract 14 with community-based providers. This division authorizes 15 community-based providers to directly participate in the 16 statewide preschool program for four-year-old children 17 established pursuant to Code chapter 256C by applying with the 18 department of education to implement a preschool program. The 19 state board is required to adopt rules to further define the 20 requirements of community-based providers implementing the 21 preschool program. 22 Under current law, state funding provided under the 23 statewide preschool program for four-year-old children is 24 provided to school districts based upon the number of eligible 25 students enrolled in the preschool programming provided by 26 the school district. Also under current law, if the school 27 district contracts with a community-based provider, state 28 funding passes from the school district to the community-based 29 provider. The division allows a community-based provider 30 approved to directly participate in the preschool program 31 to be paid preschool foundation aid directly in the same 32 manner as a school district. The division establishes the 33 amount of preschool foundation aid that is payable to such 34 a community-based provider for the initial school year for 35 -62- LSB 5427SZ (2) 91 jda/jh 62/ 63
S.F. 2501 which the community-based provider is approved to directly 1 participate in the preschool program, and for subsequent school 2 years. 3 The division makes conforming changes. 4 DIVISION XI —— SCHOOL TUITION ORGANIZATIONS —— PRESCHOOL 5 STARTUP COSTS. This division authorizes certain specified 6 school tuition organizations to provide funding to a preschool 7 in an amount up to the costs the preschool incurred in its 8 first year of operation related to the provision of preschool 9 services. The division defines “preschool” and “school tuition 10 organization”. 11 DIVISION XII —— MISCELLANEOUS PROVISIONS. This division 12 allows students from charter schools established pursuant 13 to Code chapter 256E, subchapters I and II, to access the 14 district-to-community college sharing or concurrent enrollment 15 program through the school district in which the charter school 16 is located. The division also allows students from online 17 charter schools to access the program through the students’ 18 school district of residence. 19 Current law requires the board of directors of a receiving 20 district to enroll a pupil who has properly applied for open 21 enrollment for the following school year unless the receiving 22 district has insufficient classroom space or unless the 23 receiving district has prohibited the pupil from enrolling 24 because the pupil is truant. The division requires the 25 receiving district to document the reason for the denial of any 26 open enrollment request and submit information related to the 27 denial to the department of education. 28 DIVISION XIII —— IMMEDIATE EFFECTIVE DATE. This division 29 provides that the entire bill takes effect upon enactment. 30 -63- LSB 5427SZ (2) 91 jda/jh 63/ 63