H.F. 564 DIVISION I 1 PROFESSIONAL DEVELOPMENT 2 Section 1. Section 284.6, subsections 8 and 9, Code 2017, 3 are amended to read as follows: 4 8. For each year in which a school district receives funds 5 calculated and paid to school districts for professional 6 development pursuant to section 257.10, subsection 10 , or 7 section 257.37A, subsection 2 , the school district shall 8 create quality professional development opportunities. Not 9 less than thirty-six hours in the school calendar, held 10 outside of the minimum school day, shall be set aside during 11 nonpreparation time or designated professional development 12 time to allow practitioners to collaborate with each other to 13 deliver educational programs and assess student learning, or 14 to engage in peer review pursuant to section 284.8, subsection 15 1 . The funds may be used to implement the professional 16 development provisions of the teacher career paths and 17 leadership roles specified in section 284.15 , including but 18 not limited to providing professional development to teachers, 19 including additional salaries for time beyond the normal 20 negotiated agreement; pay for substitute teachers, professional 21 development materials, speakers, and professional development 22 content; textbooks and curriculum materials used for classroom 23 purposes if such textbooks and curriculum materials include 24 professional development; administering assessments pursuant to 25 section 256.7, subsection 21, paragraph “b” , subparagraphs (1) 26 and (2), if such assessments include professional development; 27 and costs associated with implementing the individual 28 professional development plans. The use of the funds shall 29 be balanced between school district, attendance center, 30 and individual professional development plans, making every 31 reasonable effort to provide equal access to all teachers. 32 9. Moneys received pursuant to section 257.10, subsection 33 10 , or section 257.37A, subsection 2 , shall be maintained 34 as a separate listing within a school district’s or area 35 -1- HF 564 (3) 87 md/jh/sc/md 1/ 7

H.F. 564 education agency’s budget for funds received and expenditures 1 made pursuant to this subsection . The department shall not 2 require a school district or area education agency to allocate 3 a specific amount or percentage of moneys received pursuant to 4 section 257.10, subsection 10, or section 257.37A, subsection 5 2, for professional development related to implementation of 6 the core curriculum under section 256.7, subsection 26. A 7 school district shall certify to the department of education 8 how the school district allocated the funds and that moneys 9 received under this subsection were used to supplement, not 10 supplant, the professional development opportunities the school 11 district would otherwise make available. 12 Sec. 2. EFFECTIVE UPON ENACTMENT. This division of this 13 Act, being deemed of immediate importance, takes effect upon 14 enactment. 15 Sec. 3. APPLICABILITY. This division of this Act applies to 16 school budget years beginning on or after July 1, 2017. 17 DIVISION II 18 AT-RISK AND DROPOUT PREVENTION 19 Sec. 4. Section 257.11, subsection 4, paragraph d, Code 20 2017, is amended to read as follows: 21 d. Up to five percent of the total amount Amounts that a 22 school district receives as supplementary weighting pursuant 23 to this subsection or as a modified supplemental amount 24 received under section 257.41 may be used in the budget year 25 for purposes of providing district-wide , or building-wide , 26 or grade-specific at-risk and dropout prevention programming 27 targeted to pupils who are not deemed at risk. 28 Sec. 5. Section 257.41, subsection 2, paragraphs a and b, 29 Code 2017, are amended to read as follows: 30 a. Salary and benefits for instructional staff, 31 instructional support staff, guidance counselors, and 32 school-based youth services staff who are working with 33 students who are participating in at-risk or dropout prevention 34 programs, alternative programs, and alternative schools, in a 35 -2- HF 564 (3) 87 md/jh/sc/md 2/ 7

H.F. 564 traditional or alternative setting, if the staff person’s or 1 counselor’s time is dedicated to working with such students in 2 order to provide services beyond those which are provided by 3 the school district to students who are not participating in 4 such programs or alternative schools. However, if the staff 5 person or counselor works part-time with students who are 6 participating in a program or alternative school and the staff 7 person or counselor has another unrelated staff assignment, 8 only the portion of the staff person’s or counselor’s time 9 that is related to the program or alternative school may 10 be charged to the program or school. For each such staff 11 person or counselor who works part time with students who 12 are participating in a program or alternative school, the 13 school district shall have the authority to designate the 14 portion of the staff person’s or counselor’s time and the 15 corresponding amount of salary and benefits that is related 16 to the program or alternative school and shall include 17 such designation as part of the program plan under section 18 257.38, if applicable. For purposes of this paragraph, if 19 an alternative setting is necessary to provide for a program 20 which is offered at a location off school grounds and which 21 is intended to serve student needs by improving relationships 22 and connections to school, decreasing truancy and tardiness, 23 providing opportunities for course credit recovery, or helping 24 students identified as at risk to accelerate through multiple 25 grade levels of achievement within a shortened time frame, the 26 tuition costs for a student identified as at risk shall be 27 considered an appropriate use of the program funding under this 28 section . 29 b. Professional development for all teachers , counselors, 30 and staff working with at-risk students under a program or an 31 alternative school setting. 32 Sec. 6. Section 257.41, subsection 2, Code 2017, is amended 33 by adding the following new paragraphs: 34 NEW PARAGRAPH . d. Costs incurred for a program intended 35 -3- HF 564 (3) 87 md/jh/sc/md 3/ 7

H.F. 564 to address high rates of absenteeism, truancy, or frequent 1 tardiness. 2 NEW PARAGRAPH . e. Costs incurred for programs authorized 3 under section 257.11, subsection 4, paragraph “d” . 4 Sec. 7. EFFECTIVE UPON ENACTMENT. This division of this 5 Act, being deemed of immediate importance, takes effect upon 6 enactment. 7 Sec. 8. APPLICABILITY. This division of this Act applies to 8 school budget years beginning on or after July 1, 2017. 9 DIVISION III 10 SCHOOL DISTRICT FLEXIBILITY 11 Sec. 9. Section 257.10, Code 2017, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 13. Deference to school districts. 14 a. When exercising authority to carry out an agency 15 action, as defined in section 17A.2, or to perform an activity 16 or make a decision specified in section 17A.2, subsection 17 11, paragraphs “a” through “l” , if applicable, related to 18 the provisions of subsections 9, 10, and 11, including the 19 expenditure of funds received by school districts under 20 subsections 9, 10, and 11, the department of education, the 21 director of the department of education, and the state board 22 of education shall carry out, perform, or make such agency 23 action, activity, or decision in a manner that gives deference 24 to decisions of school districts’ boards of directors, promotes 25 flexibility for school districts, and minimizes intrusions into 26 school district operations and decision making by boards of 27 directors. 28 b. (1) In addition to paragraph “a” , the department of 29 education, the director of the department of education, and 30 the state board of education shall not issue guidance related 31 to the provisions of subsections 9, 10, and 11, including 32 the expenditure of funds received by a school district under 33 subsections 9, 10, and 11, that is inconsistent with any 34 statute, rule, or other legal authority or that imposes any 35 -4- HF 564 (3) 87 md/jh/sc/md 4/ 7

H.F. 564 legally binding obligations or duties upon any person unless 1 such legally binding obligations or duties are required 2 or reasonably implied by any statute, rule, or other legal 3 authority. Guidance issued in violation of this paragraph “b” 4 shall not be deemed to be legally binding. 5 (2) For the purposes of this paragraph “b” , “guidance” means 6 a document or statement issued by the department of education, 7 the director of the department of education, or the state 8 board of education that purports to interpret a law, a rule, 9 or other legal authority and is designed to provide advice 10 or direction to a person regarding the implementation of or 11 compliance with the law, the rule, or the other legal authority 12 being interpreted. “Guidance” does not include any action, 13 activity, or decision governed by paragraph “a” , a document or 14 statement required by federal law or a court, or a document or 15 statement issued in the course of a contested case proceeding, 16 an administrative proceeding, or a judicial proceeding to which 17 the department, the state board, or the director is a party. 18 Sec. 10. EFFECTIVE UPON ENACTMENT. This division of this 19 Act, being deemed of immediate importance, takes effect upon 20 enactment. 21 Sec. 11. APPLICABILITY. This division of this Act applies 22 to school budget years beginning on or after July 1, 2017. 23 DIVISION IV 24 PRESCHOOL PROGRAM 25 Sec. 12. Section 256C.4, subsection 1, paragraph e, Code 26 2017, is amended to read as follows: 27 e. Preschool foundation aid funding shall not be used for 28 the costs of constructing a facility in connection with an 29 approved local program. Preschool foundation aid funding may 30 be used by approved local programs and community providers 31 for any purpose determined by the board of directors of the 32 school district to meet standards for high-quality preschool 33 instruction and for purposes that directly or indirectly 34 benefit students enrolled in the approved local program, 35 -5- HF 564 (3) 87 md/jh/sc/md 5/ 7

H.F. 564 including but not limited to professional development for 1 preschool teachers, for instructional equipment and supplies , 2 for material and equipment designed to develop pupils’ large 3 and small motor skills, translation services, playground 4 equipment and repair costs, food and beverages used by children 5 in the approved local program, facility rental fees, and for 6 other direct costs that enhance the approved local program, 7 including by contracting with community partners for any 8 such services . Preschool foundation aid funding may be used 9 by approved local programs for the costs of transportation 10 involving children participating in the preschool program. 11 The costs of transporting other children associated with the 12 preschool program or transported as provided in section 256C.3, 13 subsection 3 , paragraph “h” , may be prorated by the school 14 district. Preschool foundation aid funding received by an 15 approved local program that remain unexpended or unobligated 16 at the end of a fiscal year shall be used to build the approved 17 local program’s preschool program capacity in the next 18 succeeding fiscal year. 19 Sec. 13. EFFECTIVE UPON ENACTMENT. This division of this 20 Act, being deemed of immediate importance, takes effect upon 21 enactment. 22 Sec. 14. APPLICABILITY. This division of this Act applies 23 to school budget years beginning on or after July 1, 2017. 24 DIVISION V 25 PHYSICAL PLANT AND EQUIPMENT LEVY 26 Sec. 15. Section 298.3, subsection 1, paragraph i, Code 27 2017, is amended to read as follows: 28 i. The purchase of transportation equipment for 29 transporting students and the repair of such transportation 30 equipment if the cost of the repair exceeds two thousand five 31 hundred dollars . For the purposes of this paragraph, “repair” 32 means restoring an existing item of equipment to its original 33 condition, as near as may be, after gradual obsolescence or 34 physical and functional depreciation due to wear and tear, 35 -6- HF 564 (3) 87 md/jh/sc/md 6/ 7

H.F. 564 corrosion and decay, or partial destruction, and includes 1 maintenance of an item of equipment. 2 Sec. 16. EFFECTIVE UPON ENACTMENT. This division of this 3 Act, being deemed of immediate importance, takes effect upon 4 enactment. 5 Sec. 17. APPLICABILITY. This division of this Act applies 6 to school budget years beginning on or after July 1, 2017. 7 DIVISION VI 8 STUDENT ACTIVITY FUND 9 Sec. 18. Section 298A.8, Code 2017, is amended to read as 10 follows: 11 298A.8 Student activity fund. 12 1. The student activity fund is a special revenue fund. 13 A student activity fund must be established in any school 14 corporation receiving money from student-related activities 15 such as admissions, activity fees, student dues, student 16 fund-raising events, or other student-related cocurricular or 17 extracurricular activities. Moneys in this fund shall be used 18 to support only the cocurricular program defined in department 19 of education administrative rules. 20 2. For school budget years beginning on or after July 1, 21 2016, the board of directors of a school corporation may, 22 by board resolution, transfer from the school corporation’s 23 general fund to the student activity fund an amount necessary 24 to purchase protective and safety equipment required for any 25 extracurricular interscholastic athletic contest or competition 26 that is sponsored or administered by an organization as defined 27 in section 280.13. 28 Sec. 19. EFFECTIVE UPON ENACTMENT. This division of this 29 Act, being deemed of immediate importance, takes effect upon 30 enactment. 31 Sec. 20. RETROACTIVE APPLICABILITY. This division of this 32 Act applies retroactively to July 1, 2016, for school budget 33 years beginning on or after that date. 34 -7- HF 564 (3) 87 md/jh/sc/md 7/ 7