H.F. 2441 Section 1. NEW SECTION . 256.9A Limitation on guidance and 1 interpretations. 2 1. For the purposes of this section, “guidance” means a 3 document or statement issued by the department, the state 4 board, or the director that purports to interpret a law, a 5 rule, or other legal authority and is designed to provide 6 advice or direction to a person regarding the implementation 7 of or compliance with the law, the rule, or the other legal 8 authority being interpreted. 9 2. The department, the state board, or the director shall 10 not issue guidance inconsistent with any statute, rule, or 11 other legal authority and shall not issue guidance that imposes 12 any legally binding obligations or duties upon any person 13 unless such legally binding obligations or duties are required 14 or reasonably implied by any statute, rule, or other legal 15 authority. 16 3. This section shall not apply to a rule adopted pursuant 17 to chapter 17A, a declaratory order issued pursuant to section 18 17A.9, a document or statement required by federal law or a 19 court, or a document or statement issued in the course of a 20 contested case proceeding, an administrative proceeding, or a 21 judicial proceeding to which the department, the state board, 22 or the director is a party. 23 4. Guidance issued by the department, the state board, or 24 the director in violation of subsection 2 shall not be deemed 25 to be legally binding. 26 Sec. 2. Section 257.10, subsection 11, paragraph d, Code 27 2018, is amended to read as follows: 28 d. The use of the funds calculated under this subsection 29 shall comply with the requirements of chapter 256D may be used 30 for any school general fund purpose . 31 Sec. 3. Section 257.31, subsection 16, Code 2018, is amended 32 to read as follows: 33 16. The committee shall perform the duties assigned to it 34 under sections 257.32 , 257.40, and 260C.18B . 35 -1- HF 2441 (4) 87 md/jh/md 1/ 9

H.F. 2441 Sec. 4. Section 257.38, subsection 1, unnumbered paragraph 1 1, Code 2018, is amended to read as follows: 2 Boards of school districts, individually or jointly with 3 boards of other school districts, requesting to use a modified 4 supplemental amount for costs in excess of the amount received 5 under section 257.11, subsection 4 , for programs for at-risk 6 students, secondary students who attend alternative programs 7 and alternative schools, and returning dropouts and dropout 8 prevention, shall submit approve, by resolution, comprehensive 9 program plans for the programs and budget costs, including 10 annual requests for a modified supplemental amount for funding 11 the programs , to the department of education as a component 12 of the comprehensive school improvement plan submitted to the 13 department pursuant to section 256.7, subsection 21 . The 14 program plans shall include: 15 Sec. 5. Section 257.38, subsection 1, paragraph j, Code 16 2018, is amended by striking the paragraph. 17 Sec. 6. Section 257.38, subsection 2, Code 2018, is amended 18 to read as follows: 19 2. Program plans shall identify the parts of the plan that 20 will be implemented first upon approval adoption of the request 21 program plan . If a district is requesting to use a modified 22 supplemental amount to finance the program, the school district 23 shall not identify more than five percent of include in the 24 request the number of students in its budget enrollment for 25 the budget year identified as returning dropouts and potential 26 dropouts. 27 Sec. 7. Section 257.40, Code 2018, is amended to read as 28 follows: 29 257.40 Approval of programs for at-risk pupils, alternative 30 programs and schools, and returning dropouts and dropout 31 prevention requests for modified supplement amounts for adopted 32 program plans . 33 The board of directors of a school district requesting 34 to use a modified supplemental amount for costs in excess of 35 -2- HF 2441 (4) 87 md/jh/md 2/ 9

H.F. 2441 the funding received under section 257.11, subsection 4 , for 1 programs for at-risk students, secondary students who attend 2 alternative programs and alternative schools, or returning 3 dropouts and dropout prevention shall submit requests for 4 a modified supplemental amount, including budget costs, to 5 the department school budget review committee not later than 6 December 15 November 1 of the year preceding the budget year 7 during which the program will be offered. The department 8 school budget review committee shall review the request and 9 shall prior to January 15 either grant approval for the request 10 or if the amount requested does not exceed an amount equal 11 to the limitation of section 257.41, subsection 3, minus any 12 funds for the adopted program carried forward to the budget 13 year. The board of directors shall certify by resolution that 14 the request complies with the school district’s adopted program 15 plan. Only if the request violates the school district’s 16 adopted program plan may the school budget review committee 17 return the request for approval with comments of the department 18 committee included. An unapproved request for a program may 19 be resubmitted with modifications to the department school 20 budget review committee not later than February 1. Not later 21 than February 15, the department school budget review committee 22 shall notify the department of management and the school budget 23 review committee of the names of the school districts for which 24 programs using a modified supplemental amount for funding have 25 been approved and the approved budget of each program listed 26 separately for each school district having an approved request. 27 If requested, the board of directors shall provide the adopted 28 program plan for any audit performed under chapter 11 or other 29 provision of law. 30 Sec. 8. Section 257.41, subsection 1, Code 2018, is amended 31 to read as follows: 32 1. Budget. The budget of an approved adopted program for 33 at-risk students, secondary students who attend alternative 34 programs or alternative schools, or returning dropouts and 35 -3- HF 2441 (4) 87 md/jh/md 3/ 9

H.F. 2441 dropout prevention for a school district, after subtracting 1 funds received under section 257.11, subsection 4 , paragraphs 2 “a” through “c” , and from other sources for that purpose, 3 including any previous carryover or amount designated from the 4 school district’s flexibility account under section 298A.2, 5 subsection 2 , shall be funded annually on a basis of one-fourth 6 or more from the district cost of the school district and up to 7 three-fourths through establishment of a modified supplemental 8 amount. Annually, the department of management shall establish 9 a modified supplemental amount for each such school district 10 equal to the difference between the approved budget for the 11 program for that district and the sum of the amount funded from 12 the district cost of the school district plus funds received 13 under section 257.11, subsection 4 , and from other sources 14 for that purpose, including any previous carryover or amount 15 designated from the school district’s flexibility account under 16 section 298A.2, subsection 2 . 17 Sec. 9. Section 257.41, subsection 2, unnumbered paragraph 18 1, Code 2018, is amended to read as follows: 19 Appropriate uses of the funding for an approved adopted 20 program include but are not limited to the following: 21 Sec. 10. Section 257.41, subsection 2, paragraphs a and b, 22 Code 2018, are amended to read as follows: 23 a. Salary and benefits for staff including but not 24 limited to instructional staff, instructional support staff, 25 administrative staff, and guidance counselors, salary and 26 benefits or contract payments for psychologists licensed 27 under chapter 154B, licensed independent social workers or 28 master social workers under chapter 154C, licensed mental 29 health counselors under chapter 154D, and salary and benefits 30 for school-based youth services staff who are working with 31 students who are participating in at-risk or dropout prevention 32 programs, alternative programs, and alternative schools, in a 33 traditional or alternative setting, or who are working with 34 students who are participating in such programs or schools, 35 -4- HF 2441 (4) 87 md/jh/md 4/ 9

H.F. 2441 if the staff such person’s or counselor’s time is dedicated 1 to working with the program or with such students in order to 2 provide services beyond those which are provided by the school 3 district to students who are not participating in such programs 4 or alternative schools. However, if the staff such person or 5 counselor works part-time with students who are participating 6 in a program or alternative school and the staff person or 7 counselor has another unrelated staff assignment, only the 8 portion of the staff person’s or counselor’s time that is 9 related to the program or alternative school may be charged to 10 the program or school. For each such staff person or counselor 11 who works part time or on a contract basis with the program or 12 with students who are participating in a program or alternative 13 school, the school district shall have the authority to 14 designate the portion of the staff person’s or counselor’s time 15 and the corresponding amount of salary and benefits or contract 16 payment amount that is related to the program or alternative 17 school and shall include such designation as part of the 18 program plan under section 257.38 , if applicable. For purposes 19 of this paragraph, if an alternative setting is necessary 20 to provide for a program which is offered at a location off 21 school grounds and which is intended to serve student needs by 22 improving relationships and connections to school, decreasing 23 truancy and tardiness, providing opportunities for course 24 credit recovery, or helping students identified as at risk 25 to accelerate through multiple grade levels of achievement 26 within a shortened time frame, the tuition costs for a student 27 identified as at risk shall be considered an appropriate use of 28 the program funding under this section . 29 b. Professional development for all teachers, counselors, 30 and staff identified in paragraph “a” who are working with 31 at-risk students under a program or an alternative school 32 setting. 33 Sec. 11. Section 257.41, subsection 2, Code 2018, is amended 34 by adding the following new paragraphs: 35 -5- HF 2441 (4) 87 md/jh/md 5/ 9

H.F. 2441 NEW PARAGRAPH . f. Any purpose determined by the board of 1 directors that directly benefits students participating in the 2 adopted program. 3 NEW PARAGRAPH . g. School security personnel costs. 4 Sec. 12. Section 297.22, subsection 2, paragraph b, Code 5 2018, is amended to read as follows: 6 b. The board of directors of a school district may lease a 7 portion of an existing school building in which the remaining 8 portion of the building will be used for school purposes 9 for a period of not to exceed five years or lease a portion 10 of existing school property . The lease may be renewed at 11 the option of the board. The notice and public hearing 12 requirements of subsection 1 of this section do not apply to 13 the lease of a portion of an existing school building. A 14 school district shall pay out of the revenue from a lease to 15 the state of Iowa, and to the city, school district and any 16 other political subdivision authorized to levy taxes, an amount 17 as determined by this section . The amount shall be determined 18 by applying the annual tax rate of the taxing district to the 19 assessed value of the portion of the building leased, prorated 20 for the term of the lease during the appropriate taxing period. 21 The provisions of this section relating to the payment of 22 property tax because of leases shall only apply to leases to 23 private, for-profit entities which lease a portion of a school 24 building for a period of thirty or more consecutive days , 25 but shall not apply to property or equipment leased as part 26 of a project designed to generate electricity for the school 27 district . 28 Sec. 13. Section 298A.8, subsection 2, Code 2018, is amended 29 to read as follows: 30 2. For school budget years beginning on or after July 1, 31 2016, the board of directors of a school corporation may, 32 by board resolution, transfer from the school corporation’s 33 general fund to the student activity fund an amount necessary 34 to purchase or recondition protective and safety equipment 35 -6- HF 2441 (4) 87 md/jh/md 6/ 9

H.F. 2441 required for any extracurricular interscholastic athletic 1 contest or competition that is sponsored or administered by an 2 organization as defined in section 280.13 . 3 Sec. 14. Section 298A.12, Code 2018, is amended to read as 4 follows: 5 298A.12 Child care fund. 6 1. A child care fund is an enterprise fund. A child care 7 fund must be established in any school corporation receiving 8 moneys from the child care program authorized under section 9 279.49 . 10 2. If the sum of the fees collected under section 279.49 for 11 participation in a before and after school program and other 12 moneys deposited in the fund as the result of the before and 13 after school program exceeds the amount necessary to operate 14 the before and after school program, the excess amount may, 15 following a public hearing, be transferred by resolution of 16 the board of directors of the school corporation for deposit 17 in the general fund of the school corporation to be used for 18 school district general fund purposes. The board shall publish 19 notice of the time and the place of the public hearing in 20 the same manner as required in section 24.9. The resolution 21 transferring the excess amount shall state the original source 22 and purpose of the funds, the method used to establish fee 23 amounts for the before and after school program under section 24 279.49, subsection 4, the proposed use of such funds, and the 25 amount of the transfer. The department of education shall 26 prescribe the form for public hearing notices. The board shall 27 provide a copy of the resolution to the department of education 28 and shall make the resolution available for any audit performed 29 under chapter 11. A transfer under this subsection does not 30 increase a school district’s authorized expenditures as defined 31 in section 257.7. 32 Sec. 15. Section 299A.12, Code 2018, is amended by adding 33 the following new subsection: 34 NEW SUBSECTION . 3A. The purposes for and limitations on 35 -7- HF 2441 (4) 87 md/jh/md 7/ 9

H.F. 2441 the expenditure of funds under subsections 2 and 3 shall not 1 be construed to prohibit a school corporation from authorizing 2 the use of items and materials purchased for the home school 3 assistance program for school district purposes other than the 4 home school assistance program so long as the authorized use 5 does not prevent or interfere with the item or material’s use 6 by parents or students utilizing the program. 7 Sec. 16. EFFECTIVE DATE. The following, being deemed of 8 immediate importance, take effect upon enactment: 9 1. The section of this Act enacting section 256.9A. 10 2. The section of this Act amending section 257.10, 11 subsection 11. 12 3. The section of this Act amending section 297.22, 13 subsection 2, paragraph “b”. 14 4. The section of this Act amending section 298A.8, 15 subsection 2. 16 5. The section of this Act amending section 298A.12. 17 6. The section of this Act amending section 299A.12. 18 Sec. 17. APPLICABILITY. The following apply to school 19 budget years beginning on or after July 1, 2018: 20 1. The section of this Act enacting section 256.9A. 21 2. The section of this Act amending section 257.10, 22 subsection 11. 23 3. The section of this Act amending section 297.22, 24 subsection 2, paragraph “b”. 25 4. The section of this Act amending section 298A.8, 26 subsection 2. 27 5. The section of this Act amending section 298A.12. 28 6. The section of this Act amending section 299A.12. 29 Sec. 18. APPLICABILITY. The following apply to school 30 budget years beginning on or after July 1, 2019: 31 1. The section of this Act amending section 257.31, 32 subsection 16. 33 2. The section of this Act amending section 257.38, 34 subsection 1, unnumbered paragraph 1. 35 -8- HF 2441 (4) 87 md/jh/md 8/ 9

H.F. 2441 3. The section of this Act amending section 257.38, 1 subsection 1, paragraph “j”. 2 4. The section of this Act amending section 257.38, 3 subsection 2. 4 5. The section of this Act amending section 257.40. 5 6. The section of this Act amending section 257.41, 6 subsection 1. 7 7. The section of this Act amending section 257.41, 8 subsection 2, unnumbered paragraph 1. 9 8. The section of this Act amending section 257.41, 10 subsection 2, paragraphs “a” and “b”. 11 9. The section of this Act enacting section 257.41, 12 subsection 2, paragraphs “f” and “g”. 13 -9- HF 2441 (4) 87 md/jh/md 9/ 9