Senate File 2369 - Reprinted SENATE FILE 2369 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 2349) (SUCCESSOR TO SSB 3080) (As Amended and Passed by the Senate March 30, 2022 ) A BILL FOR An Act relating to education, including establishing a student 1 first scholarship program, a student first operational 2 sharing fund, and a process for investigating complaints 3 against licensed practitioners, modifying provisions 4 related to supplementary weighting, the rights of students 5 enrolled in school districts or charter schools, the 6 rights of parents and guardians of those students, social 7 studies instruction, open enrollment, competent private 8 instruction, special education, practitioner preparation 9 programs, mandatory reporters, and the responsibilities 10 of the department of education, school districts, charter 11 schools, accredited nonpublic schools, and the board of 12 educational examiners, and including notice, effective date, 13 applicability, and retroactive applicability provisions. 14 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 15 SF 2369 (2) 89 jda/jh/mb

S.F. 2369 DIVISION I 1 PARENT OR GUARDIAN BILL OF RIGHTS 2 Section 1. Section 256.11, subsection 10, paragraph a, 3 subparagraph (1), Code 2022, is amended by adding the following 4 new subparagraph division: 5 NEW SUBPARAGRAPH DIVISION . (0e) The requirements of 6 section 279.76. 7 Sec. 2. Section 256E.7, subsection 2, Code 2022, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0i. Be subject to and comply with the 10 requirements of section 279.76 in the same manner as a school 11 district. 12 Sec. 3. NEW SECTION . 279.76 Parent or guardian bill of 13 rights. 14 1. Unless otherwise prohibited by state or federal law, the 15 board of directors of a school district shall adopt policies to 16 ensure that all of the following parental rights are reserved 17 to the parent or guardian of a minor child without obstruction 18 or interference from the school district in which the minor 19 child is enrolled: 20 a. The right to know what the school district in which 21 the minor child is enrolled is teaching the minor child, 22 including the textbooks, books, articles, outlines, handouts, 23 presentations, videos, and any other similar materials the 24 school district uses for student instruction. By July 1, 2025, 25 the school district shall grant access through the internet to 26 the curriculum used for student instruction of a minor child 27 enrolled in the school district to the parent or guardian of 28 the minor child. 29 b. The right to access and review information related to 30 who is teaching the minor child, including guest lecturers and 31 outside presenters. 32 c. The right to access and review information related to 33 persons who contract with or otherwise receive moneys from the 34 school district. 35 -1- SF 2369 (2) 89 jda/jh/mb 1/ 31

S.F. 2369 d. The right to access the minor child while the minor child 1 is in school that a reasonable person would deem necessary 2 to ensure the health and safety of the minor child, unless 3 otherwise prohibited by a court order. 4 e. The right to access and review all school records 5 relating to the minor child; provided, however, that the school 6 district may prohibit access to and disclosure of school 7 records if any of the following apply: 8 (1) The school records are related to the minor child’s 9 reporting of the parent’s or guardian’s violation of any law. 10 (2) The school district determines based on actual threats 11 to the health, safety, or welfare of a minor child, that 12 providing access to or disclosing the school records may result 13 in serious harm to the minor child. 14 (3) Chapter 232, subchapter III, part 2, prohibits the 15 school record from being disclosed. 16 f. The right to access and review information related to the 17 collection and transmission of information related to the minor 18 child, including assessment information, documents created by 19 the minor child, and teacher evaluations of the minor child. 20 g. Subject to section 22.7, the right to access and 21 review information necessary to ensure the accountability and 22 transparency of the board of directors of the school district 23 in which the minor child is enrolled. 24 h. The right to access and review information related to the 25 minor child’s safety while at school. 26 2. a. The school district shall not require any student 27 to engage in any activity, including instruction, or any 28 test, assessment, or other means of evaluation, that involves 29 sexually explicit material without the express prior written 30 consent of the student’s parent or guardian, which may be 31 obtained by electronic means. 32 b. The school district shall make every effort to prohibit 33 a minor child from accessing sexually explicit material in the 34 classroom on a device or through a computer network that is 35 -2- SF 2369 (2) 89 jda/jh/mb 2/ 31

S.F. 2369 owned or otherwise provided by the school district. 1 c. (1) A school district that maintains in electronic form 2 a catalog of library materials shall grant access through the 3 internet or other suitable means to the catalog of library 4 materials to the parent or guardian of any student enrolled in 5 the school district. School districts that maintain a catalog 6 of library materials in other than electronic form shall 7 grant physical access to the catalog of library materials to 8 the parent or guardian of any student enrolled in the school 9 district at the school where the student attends class and at 10 times that are convenient for the parent or guardian. 11 (2) The parent or guardian of a minor child enrolled in 12 the school district may provide notice to the school district 13 indicating the materials that the minor child shall not be 14 allowed to check out from a library operated by the school 15 district, and the school district shall not allow the minor 16 child to check out the materials described in the notice. 17 (3) If a school district does not maintain in electronic 18 form a catalog of library materials, the school district shall 19 not allow a minor child to check out sexually explicit material 20 from a library operated by the school district without the 21 express prior written consent of the minor child’s parent or 22 guardian, which may be obtained by electronic means. 23 3. The school district must receive the prior written 24 consent of a student’s parent or guardian before requiring a 25 student to take part in any of the following activities: 26 a. An activity that involves the collection, disclosure, 27 or use of personal information collected from students for the 28 purpose of marketing or selling the information or providing 29 the information to any other person for its marketing or sale. 30 b. A survey, analysis, or evaluation that reveals 31 information concerning any of the following: 32 (1) The political affiliations or beliefs of the student or 33 the student’s parent or guardian. 34 (2) Mental or psychological problems of the student or the 35 -3- SF 2369 (2) 89 jda/jh/mb 3/ 31

S.F. 2369 student’s family. 1 (3) Sex behavior or attitudes. 2 (4) Illegal, antisocial, self-incriminating, or demeaning 3 behavior. 4 (5) Critical appraisals of other individuals with whom the 5 student has close familial relationships. 6 (6) Legally recognized privileged or analogous 7 relationships, such as those of attorneys, physicians, or 8 ministers. 9 (7) Religious practices, affiliations, or beliefs of the 10 student or the student’s parent or guardian. 11 (8) Income, except when required by law to determine 12 eligibility for participation in a program or for receiving 13 financial assistance under such a program. 14 c. Any nonemergency, invasive physical examination or 15 screening that is required as a condition of attendance, 16 administered by the school and is scheduled in advance, and 17 that is not necessary to protect the immediate health and 18 safety of the student or other students. 19 4. The rights guaranteed to parents and guardians by this 20 section are not a comprehensive list of the rights reserved 21 to parents or guardians of a minor child. The enumeration of 22 the rights contained in this section shall not be construed to 23 limit the rights reserved to parents or guardians of a minor 24 child. 25 5. The school district shall publish a copy of this section 26 in the student handbook and on the school district’s internet 27 site. 28 6. For purposes of this section, unless the context 29 otherwise requires: 30 a. “Material” means the same as defined in section 728.1. 31 b. “Minor child” means an individual under eighteen years 32 of age. 33 c. “Sexually explicit material” means any material that 34 meets all of the following criteria: 35 -4- SF 2369 (2) 89 jda/jh/mb 4/ 31

S.F. 2369 (1) Taken as a whole with respect to minor children, the 1 material appeals to the prurient interest in nudity, sex, or 2 excretion. 3 (2) The material depicts, describes, or represents, in a 4 patently offensive way with respect to what is suitable for 5 minor children, a sex act or lewd exhibition of the genitals. 6 For purposes of this subparagraph, “lewd exhibition of the 7 genitals” includes any material depicting genitalia in which 8 the place or pose of the person in the depiction is sexually 9 suggestive, any visual depiction that suggests sexual coyness 10 or a willingness to engage in sexual activity, or any visual 11 depiction that is intended or designed to elicit a sexual 12 response from the viewer. 13 (3) Taken as a whole, the material lacks serious literary, 14 artistic, political, or scientific value as to minors. For 15 purposes of this subparagraph, material lacks serious literary, 16 artistic, political, or scientific value as to minor children 17 if the material contains material described in subparagraphs 18 (1) and (2) when substantially similar material is readily 19 available to minor children that does not contain material 20 described in subparagraphs (1) and (2) but that conveys a 21 substantially similar message or viewpoint. 22 d. “Visual depiction” includes any picture, slide, 23 photograph, digital or electronic image, negative image, 24 undeveloped film, motion picture, videotape, digital or 25 electronic recording, live transmission, or any other pictorial 26 or three-dimensional representation. 27 DIVISION II 28 STUDENT FIRST SCHOLARSHIP PROGRAM 29 Sec. 4. Section 256.9, Code 2022, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 65. Adopt rules relating to the 32 administration of and applications for the student first 33 scholarship program pursuant to section 257.11B, including but 34 not limited to application processing timelines and information 35 -5- SF 2369 (2) 89 jda/jh/mb 5/ 31

S.F. 2369 required to be submitted by a parent or guardian. 1 Sec. 5. Section 257.11, subsection 5, Code 2022, is amended 2 to read as follows: 3 5. Shared operational functions —— increased student 4 opportunities —— budget years beginning in 2014 through 2024 5 2034 . 6 a. (1) In order to provide additional funding to increase 7 student opportunities and redirect more resources to student 8 programming for school districts that share operational 9 functions, a district that shares with a political subdivision 10 one or more operational functions of a curriculum director, 11 master social worker, independent social worker, work-based 12 learning coordinator, special education director, mental health 13 professional who holds a statement of recognition issued by the 14 board of educational examiners, a school resource officer, or 15 school counselor, or one or more operational functions in the 16 areas of superintendent management, business management, human 17 resources, transportation, or operation and maintenance for at 18 least twenty percent of the school year shall be assigned a 19 supplementary weighting for each shared operational function. 20 A school district that shares an operational function in 21 the area of superintendent management shall be assigned a 22 supplementary weighting of eight pupils for the function. A 23 school district that shares an operational function in the area 24 of business management, human resources, transportation, or 25 operation and maintenance shall be assigned a supplementary 26 weighting of five pupils for the function. A school district 27 that shares the operational functions of a curriculum director; 28 a master social worker or an independent social worker licensed 29 under chapters 147 and 154C ; a work-based learning coordinator; 30 a special education director; a mental health professional 31 who holds a statement of recognition issued by the board 32 of educational examiners; a school resource officer; or a 33 school counselor shall be assigned a supplementary weighting 34 of three pupils for the function. The additional weighting 35 -6- SF 2369 (2) 89 jda/jh/mb 6/ 31

S.F. 2369 shall be assigned for each discrete operational function 1 shared. However, a school district may receive the additional 2 weighting under this subsection for sharing the services of an 3 individual with a political subdivision even if the type of 4 operational function performed by the individual for the school 5 district and the type of operational function performed by 6 the individual for the political subdivision are not the same 7 operational function, so long as both operational functions are 8 eligible for weighting under this subsection . In such case, 9 the school district shall be assigned the additional weighting 10 for the type of operational function that the individual 11 performs for the school district, and the school district 12 shall not receive additional weighting for any other function 13 performed by the individual. The operational function sharing 14 arrangement does not need to be a newly implemented sharing 15 arrangement to receive supplementary weighting under this 16 subsection . 17 (2) For the purposes of this paragraph “a” : 18 (a) “Political subdivision” means a city, township, county, 19 school corporation, merged area, area education agency, 20 institution governed by the state board of regents, or any 21 other governmental subdivision. 22 (b) “School resource officer” means the same as defined in 23 34 U.S.C. §10389. 24 (b) (c) “Work-based learning coordinator” means an 25 appropriately trained individual responsible for facilitating 26 authentic, engaging work-based learning experiences for 27 learners and educators in partnership with employers and others 28 to enhance learning by connecting the content and skills that 29 are necessary for future careers. 30 b. (1) Notwithstanding paragraph “a” , subparagraph (1), 31 each operational function assigned a supplementary weighting 32 of five pupils under paragraph “a” , subparagraph (1), shall 33 instead be assigned a supplementary weighting of four pupils 34 for the school budget years beginning July 1, 2022, July 1, 35 -7- SF 2369 (2) 89 jda/jh/mb 7/ 31

S.F. 2369 2023, and July 1, 2024 through July 1, 2034 . 1 (2) Notwithstanding paragraph “a” , subparagraph (1), each 2 operational function assigned a supplementary weighting of 3 three pupils under paragraph “a” , subparagraph (1), shall 4 instead be assigned a supplementary weighting of two pupils for 5 the school budget years beginning July 1, 2022, July 1, 2023, 6 and July 1, 2024 through July 1, 2034 . 7 c. School districts that share operational functions with 8 other school districts are not required to be contiguous school 9 districts. If two or more districts sharing operational 10 functions are not contiguous to each other, the districts 11 separating those districts are not required to be a party to 12 the operational functions sharing arrangement. 13 d. Supplementary weighting pursuant to this subsection 14 shall be available to a school district during the period 15 commencing with the budget year beginning July 1, 2014, 16 through the budget year beginning July 1, 2024 2034 . The 17 maximum amount of additional weighting for which a school 18 district shall be eligible in a budget year is twenty-one 19 additional pupils ; provided, however, that the maximum amount 20 of additional weighting for which a school district shall be 21 eligible in a budget year may be increased to up to twenty-four 22 additional pupils if approved pursuant to section 257.16E . 23 Criteria for determining the qualification of operational 24 functions for supplementary weighting shall be determined by 25 the department by rule, through consideration of increased 26 student opportunities. 27 e. Supplementary weighting pursuant to this subsection shall 28 be available to an area education agency during the period 29 commencing with the budget year beginning July 1, 2014, through 30 the budget year beginning July 1, 2024 2034 . The minimum 31 amount of additional funding for which an area education 32 agency shall be eligible in a budget year is thirty thousand 33 dollars, and the maximum amount of additional funding for which 34 an area education agency shall be eligible is two hundred 35 -8- SF 2369 (2) 89 jda/jh/mb 8/ 31

S.F. 2369 thousand dollars. The department of management shall annually 1 set a weighting for each area education agency to generate 2 the approved operational sharing expense using the area 3 education agency’s special education cost per pupil amount and 4 foundation level. Criteria for determining the qualification 5 of operational functions for supplementary weighting shall be 6 determined by the department by rule, through consideration of 7 increased student opportunities. 8 f. This subsection is repealed effective July 1, 2025 2035 . 9 Sec. 6. NEW SECTION . 257.11B Student first scholarship 10 program. 11 1. a. For the school budget year beginning July 1, 2022, 12 and each succeeding school budget year, the following resident 13 pupils shall be eligible to receive a student first scholarship 14 in the manner provided in this section: 15 (1) A pupil whose household has an annual income which 16 is less than or equal to four hundred percent of the most 17 recently revised poverty income guidelines published by the 18 United States department of health and human services. The 19 total number of student first scholarships the department of 20 education approves for pupils pursuant to this subparagraph 21 shall not exceed five thousand in a school year. However, if 22 the number of student first scholarships received by pupils 23 pursuant to subparagraph (2) is less than the number of student 24 first scholarships reserved for pupils under subparagraph (2), 25 the department of education may approve the difference for 26 pupils pursuant to this subparagraph for the same school year. 27 (2) A pupil who has an individualized education program. 28 The total number of student first scholarships the department 29 of education approves for pupils pursuant to this subparagraph 30 shall not exceed five thousand in a school year. However, if 31 the number of student first scholarships received by pupils 32 pursuant to subparagraph (1) is less than the number of student 33 first scholarships reserved for pupils under subparagraph (1), 34 the department of education may approve the difference for 35 -9- SF 2369 (2) 89 jda/jh/mb 9/ 31

S.F. 2369 pupils pursuant to this subparagraph for the same school year. 1 (3) A pupil who received a student first scholarship 2 for the immediately preceding school budget year, who is 3 eligible to enroll in grade one through grade twelve, who meets 4 the requirements of subparagraph (1) or (2) and who is not 5 otherwise ineligible under this section. 6 b. Student first scholarships shall be made available to 7 parents and guardians in the manner authorized under subsection 8 4, paragraph “c” , for the payment of qualified educational 9 expenses as provided in this section. 10 c. No more than ten thousand student first scholarships 11 shall be made available each school year. 12 d. For purposes of this subsection, “resident” means the 13 same as defined in section 282.1, subsection 2. 14 2. a. By January 1 preceding the school year for which the 15 student first scholarship is requested, all of the following 16 individuals may request a student first scholarship by 17 submitting an application to the department of education, on 18 application forms developed by the department of education, 19 indicating the individual intends to enroll the pupil in a 20 nonpublic school for the entirety of the school year: 21 (1) The parent or guardian of a pupil currently enrolled 22 in a school district who has been enrolled in that school 23 district for the equivalent of at least two semesters 24 immediately preceding the school year for which the student 25 first scholarship is requested. 26 (2) The parent or guardian of a pupil who is eligible to 27 enroll in a school district for kindergarten in the next school 28 year. 29 (3) The parent or guardian of pupil enrolled in a nonpublic 30 school who received a student first scholarship in the current 31 school year. 32 b. By February 1 preceding the school year for which the 33 student first scholarship is requested, the department of 34 education shall determine the number of pupils in each school 35 -10- SF 2369 (2) 89 jda/jh/mb 10/ 31

S.F. 2369 district approved to receive a scholarship for the following 1 school year and shall notify the parent or guardian of each 2 pupil approved for the following school year to receive a 3 scholarship and the amount of the scholarship for the pupil. 4 The department of education shall approve pupils who received 5 a student first scholarship for the immediately preceding 6 school budget year who are eligible to enroll in grade one 7 through grade twelve, who meet the requirements of subsection 8 1, paragraph “a” , subparagraph (1) or (2), and who are not 9 otherwise ineligible under this section. The department 10 of education shall approve the remaining pupils who did 11 not receive a student first scholarship for the immediately 12 preceding school budget year, subject to the limitation in 13 subsection 1, paragraph “c” , on a first-come, first-served 14 basis based on the date the parent or guardian submitted the 15 application pursuant to paragraph “a” . 16 c. Student first scholarships shall only be approved for 17 one school year and applications must be submitted annually for 18 student first scholarships in subsequent school years. 19 3. The department of education shall assign each pupil a 20 student first scholarship in an amount equal to the sum of all 21 the following for the same school budget year: 22 a. The product of the pupil’s weighted enrollment that 23 would otherwise be assigned to the pupil under this chapter if 24 the pupil was enrolled in the pupil’s district of residence 25 multiplied by the difference between eighty-eight and 26 four-tenths percent of the regular program state cost per pupil 27 and the statewide average foundation property tax per pupil. 28 b. The total teacher salary supplement district cost per 29 pupil for the pupil’s district of residence. 30 c. The total professional development supplement district 31 cost per pupil for the pupil’s district of residence. 32 d. The total early intervention supplement district cost per 33 pupil for the pupil’s district of residence. 34 e. The total area education agency teacher salary supplement 35 -11- SF 2369 (2) 89 jda/jh/mb 11/ 31

S.F. 2369 district cost per pupil for the pupil’s district of residence. 1 f. The total area education agency professional development 2 supplement district cost per pupil for the pupil’s district of 3 residence. 4 g. The total teacher leadership supplement district cost per 5 pupil for the pupil’s district of residence. 6 4. A student first scholarship fund is created in the 7 state treasury under the control of the department of 8 education consisting of moneys appropriated to the department 9 of education for the purpose of providing student first 10 scholarships under this section. For the fiscal year 11 commencing July 1, 2022, and each succeeding fiscal year, there 12 is appropriated from the general fund of the state to the 13 department of education to be credited to the fund the amount 14 necessary to pay all student first scholarships approved for 15 that fiscal year. The director of the department of education 16 has all powers necessary to carry out and effectuate the 17 purposes, objectives, and provisions of this section pertaining 18 to the fund, including the power to do all of the following: 19 a. Make and enter into contracts necessary for the 20 administration of the fund. 21 b. Procure insurance against any loss in connection with the 22 assets of the fund or require a surety bond. 23 c. Contract with a private financial management firm to 24 manage the fund, in collaboration with the treasurer of state, 25 including providing for the disbursement of student first 26 scholarships in the form of an electronic debit card or checks 27 that are payable directly from the pupil’s account within the 28 fund. 29 d. Conduct audits or other reviews necessary to properly 30 administer the program. 31 e. Adopt rules for the administration of the fund and 32 accounts within the fund. 33 5. a. For each pupil approved for a student first 34 scholarship, the nonpublic school shall certify the pupil’s 35 -12- SF 2369 (2) 89 jda/jh/mb 12/ 31

S.F. 2369 enrollment and the department of education shall establish an 1 account for that pupil in the student first scholarship fund. 2 The amount of the pupil’s student first scholarship shall be 3 deposited into the pupil’s account on July 1, and such amount 4 shall be immediately available for the payment of qualified 5 educational expenses incurred by the parent or guardian for 6 the pupil during that fiscal year using the payment method 7 authorized under subsection 4, paragraph “c” . 8 b. A nonpublic school that accepts payment from a parent 9 or guardian using funds from a pupil’s account in the student 10 first scholarship fund shall not refund, rebate, or share any 11 portion of such payment with the parent, guardian, or pupil. 12 c. Moneys remaining in a pupil’s account upon conclusion 13 of the fiscal year shall remain in the pupil’s account in the 14 student first scholarship fund for the payment of qualified 15 educational expenses in future fiscal years during which the 16 pupil participates in the program until the pupil becomes 17 ineligible under the program or until the remaining amounts are 18 transferred to the state general fund under subsection 8. 19 6. a. For purposes of this section, “qualified educational 20 expenses” includes tuition and fees at a nonpublic school, 21 textbooks, fees or payments for educational therapies, 22 including tutoring or cognitive skills training, curriculum 23 fees, software, and materials for a course of study for a 24 specific subject matter or grade level, tuition or fees for 25 nonpublic online education programs, tuition for vocational and 26 life skills education approved by the department of education, 27 education materials and services for pupils with disabilities, 28 including the cost of paraprofessionals and assistants who are 29 trained in accordance with state law, standardized test fees, 30 advanced placement examinations or examinations related to 31 postsecondary education admission or credentialing, qualified 32 education expenses, as defined in section 12D.1, excluding 33 room and board expenses, and other expenses incurred by the 34 parent or guardian that are directly related to the education 35 -13- SF 2369 (2) 89 jda/jh/mb 13/ 31

S.F. 2369 of the pupil at a nonpublic school, including a nonpublic 1 school accredited by an independent accrediting agency approved 2 by the department of education. The cost of one computer or 3 other portable computing device shall be allowed as a qualified 4 educational expense for a pupil if the computer or portable 5 computing device is used primarily for the education of the 6 pupil and if such a purchase has not been made using funds from 7 that pupil’s account in any of the three immediately preceding 8 fiscal years. 9 b. “Qualified educational expenses” does not include 10 transportation costs for the pupil, the cost of food or 11 refreshments consumed by the pupil, the cost of clothing for 12 the pupil, or the cost of disposable materials, including 13 but not limited to paper, notebooks, pencils, pens, and art 14 supplies. 15 7. a. A person who makes a false claim for the purpose 16 of obtaining a student first scholarship provided for in this 17 section or who knowingly receives the scholarship or makes a 18 payment from an account within the student first scholarship 19 fund without being legally entitled to do so is guilty of a 20 fraudulent practice under chapter 714. The false claim for a 21 student first scholarship or a payment from an account shall 22 be disallowed. The department of education shall also close 23 the pupil’s account in the student first scholarship fund and 24 transfer any remaining moneys in the account for deposit in the 25 general fund of the state. If the improperly obtained amounts 26 from the scholarship have been disbursed from the applicable 27 account in the student first scholarship fund, the department 28 of education shall recover such amounts from the parent or 29 guardian, including by initiating legal proceedings to recover 30 such amounts, if necessary. A parent or guardian who commits 31 a fraudulent practice under this section is prohibited from 32 participating in the student first scholarship program in the 33 future. 34 b. If, prior to the end of the required attendance 35 -14- SF 2369 (2) 89 jda/jh/mb 14/ 31

S.F. 2369 period of the school year, a pupil who receives a student 1 first scholarship withdraws from enrollment in the nonpublic 2 school or is expelled, the nonpublic school shall notify the 3 department of education in writing of the pupil’s withdrawal 4 or expulsion, and the pupil’s parent or guardian shall notify 5 the department of education of the pupil’s withdrawal or 6 expulsion from the nonpublic school. A pupil’s expulsion 7 from the nonpublic school prior to the end of the required 8 attendance period for the school year shall invalidate the 9 pupil’s eligibility for the student first scholarship for the 10 school budget year. A pupil’s withdrawal from a nonpublic 11 school prior to the end of the required attendance period of 12 the school year shall invalidate the pupil’s eligibility for 13 the student first scholarship for the school budget year unless 14 the withdrawal is the result of a change in residence of the 15 pupil and the pupil, following written notice by the parent 16 or guardian and certification by the new nonpublic school to 17 the department of education, enrolls in a different nonpublic 18 school in this state for the remainder of the school year. 19 c. (1) Upon receipt of a notice of expulsion under 20 paragraph “b” , the department of education shall close the 21 pupil’s account in the student first scholarship fund and 22 transfer any remaining moneys in the account for deposit in 23 the general fund of the state. In addition, if amounts from 24 the scholarship for the school budget year during which the 25 pupil is expelled have been disbursed from the expelled pupil’s 26 account in the student first scholarship fund, the department 27 of education shall recover such amounts from the parent or 28 guardian, including by initiating legal proceedings to recover 29 such amounts, if necessary. 30 (2) Upon receipt of a notice of withdrawal under paragraph 31 “b” and a determination that the pupil’s withdrawal was 32 not the result of a change in residence, the department of 33 education shall cease disbursements of remaining moneys in 34 the pupil’s account in the student first scholarship fund, 35 -15- SF 2369 (2) 89 jda/jh/mb 15/ 31

S.F. 2369 close the pupil’s account, and transfer any moneys remaining 1 in the pupil’s account for deposit in the general fund of 2 the state. In addition, if amounts from the scholarship for 3 the school budget year during which the withdrawal occurs 4 have been disbursed from the pupil’s account in the student 5 first scholarship fund, the department of education shall 6 recover such amounts from the parent or guardian to the extent 7 the amount disbursed exceeds the amount of the scholarship 8 proportionate to the remaining portion of the school year 9 following the withdrawal, including by initiating legal 10 proceedings to recover such amounts, if necessary. 11 (3) Upon receipt of a notice of withdrawal under paragraph 12 “b” and a determination that the withdrawal was the result of 13 a change in residence but that the pupil did not enroll in 14 a different nonpublic school in this state for the remainder 15 of the school year, the department of education shall cease 16 disbursements of remaining moneys in the pupil’s account in 17 the student first scholarship fund, close the pupil’s account, 18 and transfer any moneys remaining in the pupil’s account for 19 deposit in the general fund of the state. 20 (4) If a pupil’s eligibility is invalidated under the 21 provisions of paragraph “b” , the pupil shall be ineligible for a 22 student first scholarship for the following school budget year 23 under subsection 1, paragraph “a” , subparagraphs (2) and (3). 24 8. Moneys remaining in a pupil’s account when the pupil 25 graduates from high school or turns twenty-one years of age, 26 whichever occurs first, shall be transferred by the department 27 of education for deposit in the general fund of the state. 28 9. a. A parent may appeal to the state board of education 29 any administrative decision the department of education 30 makes pursuant to this section, including but not limited 31 to determinations of eligibility, allowable expenses, and 32 removal from the program. The department shall notify the 33 parent or guardian in writing of the appeal process at the same 34 time the department notifies the parent or guardian of the 35 -16- SF 2369 (2) 89 jda/jh/mb 16/ 31

S.F. 2369 administrative decision. The state board of education shall 1 establish the appeals process consistent with chapter 17A and 2 shall post such appeal process information on the state board 3 of education’s internet site. 4 b. The state board of education shall refer cases of 5 substantial misuse of student first scholarship funds to the 6 attorney general for the purpose of collection or for the 7 purpose of a criminal investigation if the state board of 8 education obtains evidence of fraudulent use of an account. 9 10. a. This section shall not be construed to authorize 10 the state or any political subdivision of the state to exercise 11 authority over any nonpublic school or construed to require a 12 nonpublic school to modify its academic standards for admission 13 or educational program in order to receive payment from a 14 parent or guardian using funds from a pupil’s account in the 15 student first scholarship fund. 16 b. This section shall not be construed to expand the 17 authority of the state or any political subdivision of the 18 state to impose regulations upon any nonpublic school that are 19 not necessary to implement this section. 20 c. A nonpublic school that accepts payment from a parent 21 or guardian using funds from a pupil’s account in the student 22 first scholarship fund is not an agent of this state or of a 23 political subdivision of this state. 24 d. Rules adopted by the department of education to implement 25 this section that impose an undue burden on a nonpublic school 26 are invalid. 27 e. A nonpublic school that accepts payment from a parent 28 or guardian using funds from a pupil’s account in the student 29 first scholarship fund shall be given the maximum freedom 30 possible to provide for the educational needs of the school’s 31 students, consistent with state and federal law. 32 Sec. 7. NEW SECTION . 257.16E Student first operational 33 sharing fund. 34 1. A student first operational sharing fund is created as 35 -17- SF 2369 (2) 89 jda/jh/mb 17/ 31

S.F. 2369 a separate and distinct fund in the state treasury under the 1 control of the department of management. Moneys in the fund 2 include revenues credited to the fund, appropriations made to 3 the fund, and other moneys deposited into the fund. 4 2. a. For each fiscal year beginning on or after July 1, 5 2023, there is appropriated annually from the general fund of 6 the state to the department of management for deposit in the 7 student first operational sharing fund an amount equal to the 8 product of the number of student first scholarships approved 9 under section 257.11B for the base year multiplied by the sum 10 of the statewide average foundation property tax per pupil plus 11 the difference between the amount determined under section 12 257.16B, subsection 2, paragraph “c” , subparagraph (2), and 13 the amount determined under section 257.16B, subsection 2, 14 paragraph “c” , subparagraph (1). 15 b. The moneys available in a fiscal year in the student 16 first operational sharing fund shall be used to increase the 17 maximum amount of additional weighting established pursuant to 18 section 257.11, subsection 5, paragraph “d” , from twenty-one 19 additional pupils up to twenty-four additional pupils if the 20 school district requests the additional weighting from the 21 school budget review committee, and the school budget review 22 committee approves the additional weighting after examining 23 the need for the position requested. If the moneys in the 24 student first operational sharing fund are insufficient to make 25 the payments required by section 257.11, subsection 5, the 26 remainder shall be paid as foundation aid pursuant to section 27 257.16. 28 3. Payments to school districts under this section shall 29 be paid at the same time and in the same manner as foundation 30 aid is paid under section 257.16, and may be included in the 31 monthly payment of state aid under section 257.16, subsection 32 2. 33 4. Notwithstanding section 8.33, any moneys remaining 34 in the student first operational sharing fund at the end of 35 -18- SF 2369 (2) 89 jda/jh/mb 18/ 31

S.F. 2369 a fiscal year shall not revert to any other fund but shall 1 remain in the student first operational sharing fund for use as 2 provided in this section for the following fiscal year. 3 Sec. 8. Section 257.31, subsection 16, Code 2022, is amended 4 to read as follows: 5 16. The committee shall perform the duties assigned to it 6 under sections 257.16E, 257.32 , 257.40 , and 260C.18B . 7 Sec. 9. Section 422.7, Code 2022, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 51. Subtract, to the extent included, the 10 amount of a student first scholarship under section 257.11B 11 received by the taxpayer for payment of qualified educational 12 expenses. 13 Sec. 10. STUDENT FIRST SCHOLARSHIP PROGRAM APPLICATIONS FOR 14 THE SCHOOL YEAR BEGINNING JULY 1, 2022. 15 1. Notwithstanding the deadline in section 257.11B, 16 subsection 2, paragraph “a”, as enacted in this division of 17 this Act, by May 1 preceding the school year beginning July 18 1, 2022, the parent or guardian of a pupil who is enrolled in 19 a school district or who is eligible to enroll in a school 20 district for kindergarten in the next school year, and who is 21 requesting a student first scholarship for the school year 22 beginning July 1, 2022, may request a student first scholarship 23 by submitting an application to the department of education, 24 on application forms developed by the department of education, 25 indicating that the parent or guardian intends to enroll the 26 pupil in a nonpublic school for the entirety of the school year 27 beginning July 1, 2022. 28 2. Notwithstanding the deadline in section 257.11B, 29 subsection 2, paragraph “b”, as enacted in this division of 30 this Act, by June 1 preceding the school year beginning July 31 1, 2022, the department of education shall determine the 32 number of pupils in each school district approved to receive 33 a scholarship for the following school year and shall notify 34 the parent or guardian of each pupil approved for the following 35 -19- SF 2369 (2) 89 jda/jh/mb 19/ 31