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Senate File 2425 - IntroducedA Bill ForAn Act 1relating to education, including by modifying provisions
2related to charter schools, the Iowa public employees’
3retirement system, financing programs for charter schools
4and nonpublic schools administered by the Iowa finance
5authority, the statewide voluntary preschool program
6for four-year-old children, education savings accounts,
7independent accrediting agencies, teacher training and
8licensure, and making appropriations, and including
9applicability and retroactive applicability provisions.
10BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2CHARTER SCHOOL FUNDING
3 Section 1. Section 256E.8, subsection 2, paragraph a, Code
42026, is amended to read as follows:
5a. The charter school in which the student is enrolled
6shall receive under paragraph “c” an amount equal to the sum
7of the regular program state cost per pupil for the budget
8year plus the teacher leadership supplement state cost per
9pupil, the teacher salary supplement state cost per pupil, the
10professional development supplement state cost per pupil, and
11the early intervention supplement state cost per pupil for
12the budget year as provided in section 257.9 plus any moneys
13that would be due to the school district of residence for the
14student as a result of the non-English speaking weighting under
15section 280.4, subsection 3, for the budget year multiplied by
16the state cost per pupil for the budget year. If a student
17is an eligible pupil under section 261E.6, the charter school
18shall pay the tuition reimbursement amount to an eligible
19postsecondary institution as provided in section 261E.7.
20 Sec. 2. APPLICABILITY. This division of this Act applies to
21school budget years beginning on or after July 1, 2026.
22DIVISION II
23IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
24 Sec. 3. Section 97B.1A, subsection 8, paragraph a, Code
252026, is amended by adding the following new subparagraph:
26 NEW SUBPARAGRAPH. (13) Persons employed by a charter
27school established pursuant to chapter 256E that satisfies all
28applicable requirements under federal law for participation in
29the retirement system.
30 Sec. 4. Section 97B.1A, subsection 9, paragraph a, Code
312026, is amended to read as follows:
32a. “Employer” means the state of Iowa, the counties,
33municipalities, agencies, public school districts, charter
34schools established pursuant to chapter 256E that satisfy all
35applicable requirements under federal law for participation
-1-1in the retirement system, all political subdivisions, and
2all of their departments and instrumentalities, including
3area agencies on aging, other than those employing persons as
4specified in subsection 8, paragraph “b”, subparagraph (7), and
5joint planning commissions created under chapter 28E or 28I.
6 Sec. 5. Section 256E.11, subsection 2, Code 2026, is amended
7to read as follows:
82. In the event of a charter school closure, the assets of
9the charter school shall be used first to satisfy outstanding
10payroll obligations for employees of the school and any
11liabilities due and owing to the Iowa public employees’
12retirement system, then to creditors of the school, then to the
13public school district in which the charter school operated,
14if applicable, and then to the state general fund. If the
15assets of the charter school are insufficient to pay all
16obligations of the charter school, the prioritization of the
17distribution of assets shall be consistent with this subsection
18and otherwise determined by the district court.
19DIVISION III
20EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR
21COMPETITIONS PROVIDED BY PUBLIC SCHOOLS
22 Sec. 6. Section 280.13D, Code 2026, is amended to read as
23follows:
24280.13D Participation in extracurricular interscholastic
25athletic contests or competitions provided by public schools.
261. a. The board of directors of a school district shall
27allow a student who resides within the school district, and
28who is enrolled in a nonpublic school or a charter school
29established pursuant to chapter 256E, to participate in any
30extracurricular interscholastic athletic contest or competition
31that is provided by the school district pursuant to the terms
32of an agreement between the board of directors of the school
33district and the authorities in charge of the nonpublic school
34or the governing board of the charter school, as applicable,
35 that provides for the eligibility of the student, if all of the
-2-1following criteria are satisfied:
2(1) The extracurricular interscholastic athletic contest or
3competition has not been provided by the nonpublic school or
4the charter school during the two immediately preceding school
5years.
6(2) The nonpublic school or charter school has not entered
7into an agreement under section 280.13A with another school
8district, nonpublic school, or charter school that provides
9for the eligibility of students enrolled in the nonpublic
10school or charter school to participate in the extracurricular
11interscholastic athletic contest or competition that is being
12provided by that school district, nonpublic school, or charter
13school.
14b. The board of directors of a school district shall allow
15a student who resides within a contiguous school district, and
16who is enrolled in a nonpublic school or charter school, to
17participate in any extracurricular interscholastic athletic
18contest or competition that is provided by the school district
19pursuant to the terms of an agreement between the board of
20directors of the school district and the authorities in charge
21of the nonpublic school or the governing board of the charter
22school, as applicable, that provides for the eligibility of the
23student, if all of the following criteria are satisfied:
24(1) The extracurricular interscholastic athletic contest
25or competition has not been provided by the nonpublic school
26or charter school or by the student’s school district of
27residence, during the two immediately preceding school years.
28(2) The nonpublic school has not entered into an agreement
29under section 280.13A with another school district, nonpublic
30school, or charter school that provides for the eligibility of
31students enrolled in the nonpublic school or charter school to
32participate in the extracurricular interscholastic athletic
33contest or competition that is being provided by that school
34district, nonpublic school, or charter school.
35c. If the board of directors of a school district has
-3-1established a fee for the cost of a student’s participation
2in an extracurricular interscholastic athletic contest or
3competition, a student who is enrolled in a nonpublic school
4or a charter school and is participating in a contest or
5competition at a public school pursuant to paragraph “a” or
6“b”, or the student’s parent or guardian, shall be responsible
7for the payment of such fee. The amount of such fee shall not
8exceed the amount of the fee the board of directors of the
9school district has established for students who are enrolled
10in the school district.
112. A student who is enrolled in a nonpublic school or a
12charter school and is participating in a contest or competition
13at a public school pursuant to subsection 1, paragraph “a” or
14“b”, shall participate under the same conditions as a student
15who is enrolled in the school district, including meeting the
16school district’s student code of conduct requirements.
173. A student who participates in an extracurricular
18interscholastic athletic contest or competition pursuant
19to this section shall be deemed to satisfy the residence
20requirements for purposes of section 256.46.
21DIVISION IV
22LOCAL EDUCATION AGENCY STATUS
23 Sec. 7. Section 256E.5, Code 2026, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 1A. The governing board of a charter school
26that is approved under this section shall be designated a local
27education agency for the purpose of receiving federal funds for
28all attendance centers that are under the jurisdiction of the
29governing board.
30DIVISION V
31CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES
32 Sec. 8. NEW SECTION. 16.163 Authority to issue charter
33school and accredited nonpublic school facilities bonds and
34notes.
35The authority shall assist charter schools established
-4-1pursuant to chapter 256E and nonpublic schools that are
2accredited pursuant to section 256.11, and the authority
3shall have all of the powers delegated to it in a chapter 28E
4agreement by a charter school, accredited nonpublic school,
5or private developer contracting with a charter school or an
6accredited nonpublic school to purchase, acquire, develop,
7reconstruct, remodel, or replace school buildings, for the
8charter school or accredited nonpublic school, with respect
9to the issuance or securing of bonds or notes as provided in
10section 256J.1.
11 Sec. 9. NEW SECTION. 16.164 Charter school facilities
12revolving loan program fund — credit enhancement agreements.
131. a. A charter school facilities revolving loan program
14fund is created within the authority to assist charter schools
15established pursuant to chapter 256E in acquiring suitable
16school facilities. The moneys in the charter school facilities
17revolving loan program fund are appropriated to the authority
18for use in the development and operation of a charter school
19facilities revolving loan program to assist charter schools in
20purchasing, acquiring, developing, reconstructing, remodeling,
21or replacing school buildings.
22b. Moneys transferred by the authority for deposit
23in the charter school facilities revolving loan program
24fund, moneys appropriated to the charter school facilities
25revolving loan program, and any other moneys available to
26and obtained or accepted by the authority for placement in
27the charter school facilities revolving loan program fund
28shall be deposited in the fund. Additionally, payment of
29interest, recaptures of awards, and other repayments to the
30charter school facilities revolving loan program fund shall
31be deposited in the fund. Notwithstanding section 12C.7,
32subsection 2, interest or earnings on moneys in the charter
33school facilities revolving loan program fund shall be credited
34to the fund. Notwithstanding section 8.33, moneys that remain
35unencumbered or unobligated at the end of the fiscal year shall
-5-1not revert but shall remain available for the same purpose in
2the succeeding fiscal year.
3c. The authority shall annually allocate moneys available in
4the charter school facilities revolving loan program fund to
5assist charter schools in purchasing, acquiring, developing,
6reconstructing, remodeling, or replacing school buildings.
72. In addition to the charter school facilities revolving
8loan program authorized pursuant to subsection 1, the authority
9is authorized to make or enter into a liquidity or credit
10enhancement agreement with a charter school established
11pursuant to chapter 256E to assist the charter school in
12purchasing, acquiring, developing, reconstructing, remodeling,
13or replacing school buildings.
14 Sec. 10. NEW SECTION. 16.165 Accredited nonpublic school
15facilities revolving loan program fund — credit enhancement
16agreements.
171. a. An accredited nonpublic school facilities revolving
18loan program fund is created within the authority to assist
19nonpublic schools that are accredited pursuant to section
20256.11 in acquiring suitable school facilities. The moneys
21in the accredited nonpublic school facilities revolving loan
22program fund are appropriated to the authority for use in the
23development and operation of an accredited nonpublic school
24facilities revolving loan program to assist nonpublic schools
25that are accredited pursuant to section 256.11 in purchasing,
26acquiring, developing, reconstructing, remodeling, or replacing
27school buildings.
28b. Moneys transferred by the authority for deposit in
29the accredited nonpublic school facilities revolving loan
30program fund, moneys appropriated to the accredited nonpublic
31school facilities revolving loan program, and any other
32moneys available to and obtained or accepted by the authority
33for placement in the accredited nonpublic school facilities
34revolving loan program fund shall be deposited in the fund.
35Additionally, payment of interest, recaptures of awards,
-6-1and other repayments to the accredited nonpublic school
2facilities revolving loan program fund shall be deposited
3in the fund. Notwithstanding section 12C.7, subsection 2,
4interest or earnings on moneys in the accredited nonpublic
5school facilities revolving loan program fund shall be credited
6to the fund. Notwithstanding section 8.33, moneys that remain
7unencumbered or unobligated at the end of the fiscal year shall
8not revert but shall remain available for the same purpose in
9the succeeding fiscal year.
10c. The authority shall annually allocate moneys available
11in the accredited nonpublic school facilities revolving
12loan program fund to assist nonpublic schools that are
13accredited pursuant to section 256.11 in purchasing, acquiring,
14developing, reconstructing, remodeling, or replacing school
15buildings.
162. In addition to the accredited nonpublic school
17facilities revolving loan program authorized pursuant to
18subsection 1, the authority is authorized to make or enter into
19a liquidity or credit enhancement agreement with a nonpublic
20school that is accredited pursuant to section 256.11 to assist
21the accredited nonpublic school in purchasing, acquiring,
22developing, reconstructing, remodeling, or replacing school
23buildings.
24 Sec. 11. NEW SECTION. 256J.1 Charter school and accredited
25nonpublic school facilities bond program.
261. As used in this section:
27a. “Authority” means the Iowa finance authority.
28b. “Bonds” means bonds which are payable solely as provided
29in this section.
30c. “School” means all of the following:
31(1) A charter school established pursuant to chapter 256E.
32(2) A nonpublic school that is accredited pursuant to
33section 256.11.
342. The authority shall cooperate with schools that wish to
35participate in the creation, administration, and funding of
-7-1a charter school and accredited nonpublic school facilities
2bond program to assist such schools in financing the purchase,
3acquisition, development, reconstruction, remodeling, or
4replacement of school buildings.
53. The authority may issue its bonds and notes for the
6purpose of funding the nonrecurring cost of purchasing,
7acquiring, developing, reconstructing, remodeling, or replacing
8a school building for a school.
94. The authority may issue its bonds and notes for the
10purposes of this section and may enter into one or more lending
11agreements or purchase agreements with one or more bondholders
12or noteholders containing the terms and conditions of the
13repayment of and the security for the bonds or notes. The
14authority and the bondholders or noteholders or a trustee
15agent designated by the authority may enter into agreements to
16provide for any of the following:
17a. That the proceeds of the bonds and notes and the
18investments of the proceeds may be received, held, and
19disbursed by the authority or by a trustee or agent designated
20by the authority.
21b. That the bondholders or noteholders or a trustee or
22agent designated by the authority may collect, invest, and
23apply the amount payable under the loan agreements or any
24other instruments securing the debt obligations under the loan
25agreements.
26c. That the bondholders or noteholders may enforce the
27remedies provided in the loan agreements or other instruments
28on their own behalf without the appointment or designation of a
29trustee. If there is a default in the principal of or interest
30on the bonds or notes or in the performance of any agreement
31contained in the loan agreements or other instruments, the
32payment or performance may be enforced in accordance with the
33loan agreement or other instrument.
34d. Other terms and conditions as deemed necessary or
35appropriate by the authority.
-8- 15. The powers granted the authority under this section are
2in addition to other powers contained in chapter 16. All other
3provisions of chapter 16, except section 16.28, subsection
44, apply to bonds or notes issued and powers granted to the
5authority under this section, except to the extent they are
6inconsistent with this section.
76. All bonds or notes issued by the authority in connection
8with the program are exempt from taxation by this state and the
9interest on the bonds or notes is exempt from state income tax,
10both personal and corporate.
117. a. The authority may provide in the resolution, trust
12agreement, or other instrument authorizing the issuance of its
13bonds or notes pursuant to this section that the principal of,
14premium, and interest on the bonds or notes are payable from
15any of the following and may pledge the same to its bonds and
16notes:
17(1) From the amounts received by a charter school under
18section 256E.8, subsection 2, paragraph “c”.
19(2) From the amounts received by a nonpublic school under
20section 257.11B, subsection 5.
21(3) From the income derived from gifts and bequests made to
22the school for such purposes.
23(4) From the other funds or accounts established by the
24authority in connection with the program or the sale and
25issuance of its bonds or notes.
26b. No obligation created hereunder shall ever be or become
27a charge against the state of Iowa but all such obligations,
28including principal and interest, shall be payable solely as
29provided in this section.
308. The authority may establish reserve funds to secure
31one or more issues of its bonds or notes. The authority may
32deposit in a reserve fund established under this subsection
33the proceeds of the sale of its bonds or notes and other money
34which is made available from any other source.
359. A pledge made in respect of bonds or notes is valid
-9-1and binding from the time the pledge is made. The money or
2property so pledged and received after the pledge by the
3authority is immediately subject to the lien of the pledge
4without physical delivery or further act. The lien of the
5pledge is valid and binding as against all persons having
6claims of any kind in tort, contract, or otherwise against
7the authority whether or not the parties have notice of the
8lien. Neither the resolution, trust agreement, or any other
9instrument by which a pledge is created needs to be recorded,
10filed, or perfected under chapter 554, to be valid, binding, or
11effective against all persons.
1210. The members of the authority or persons executing the
13bonds or notes are not personally liable on the bonds or notes
14and are not subject to personal liability or accountability by
15reason of the issuance of the bonds or notes.
1611. The bonds or notes issued by the authority are not
17an indebtedness or other liability of the state or of a
18political subdivision of the state within the meaning of
19any constitutional or statutory debt limitations, but are
20special obligations of the authority and are payable solely as
21described in subsection 7, paragraph “a”, to the extent that
22the amounts are designated in the resolution, trust agreement,
23or other instrument of the authority authorizing the issuance
24of the bonds or notes as being available as security for the
25bonds or notes. The authority shall not pledge the faith or
26credit of the state or of a political subdivision of the state
27to the payment of any bonds or notes. The issuance of any bonds
28or notes by the authority does not directly, indirectly, or
29contingently obligate the state or a political subdivision of
30the state to apply money from, or levy, or pledge any form of
31taxation whatsoever to the payment of the bonds or notes.
32 Sec. 12. Section 422.7, subsection 2, Code 2026, is amended
33by adding the following new paragraph:
34 NEW PARAGRAPH. 0k. Charter school and accredited nonpublic
35school facilities bond program bonds pursuant to section
-10-1256J.1.
2 Sec. 13. CODE EDITOR DIRECTIVE. The Code editor shall
3designate sections 16.163 through 16.165, as enacted in
4this Act, as new sections within chapter 16, subchapter X,
5part 6, and may redesignate the preexisting part and correct
6internal references as necessary, including references to part
7headnotes.
8 Sec. 14. RETROACTIVE APPLICABILITY. The following applies
9retroactively to January 1, 2026, for tax years beginning on
10or after that date:
11The section of this division of this Act amending section
12422.7.
13DIVISION VI
14STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD
15CHILDREN
16 Sec. 15. Section 256C.3, subsection 4, Code 2026, is amended
17by adding the following new paragraph:
18 NEW PARAGRAPH. e. (1) A school district may enter into
19a chapter 28E agreement with a community-based provider to
20allow the community-based provider to provide high-quality
21instruction as part of the approved local program.
22(2) Upon the request of a community-based provider, a
23school district shall enter into a chapter 28E agreement with a
24community-based provider to allow the community-based provider
25to provide high-quality instruction as part of the approved
26local program.
27(3) A chapter 28E agreement entered into pursuant to this
28paragraph shall not limit the number of eligible students who
29may receive high-quality instruction from a community-based
30provider as part of the approved local program.
31 Sec. 16. NEW SECTION. 256C.7 Limitation of authority.
321. This chapter shall not be construed to authorize the
33state or any political subdivision of the state to exercise
34authority over any community-based provider or construed to
35require a community-based provider to modify its academic
-11-1standards for admission or educational program in order to
2receive payments from a school district pursuant to section
3256C.4, subsection 1.
42. This chapter shall not be construed to expand the
5authority of the state or any political subdivision of the
6state to impose regulations upon any community-based provider
7that are not necessary to implement this chapter.
83. A community-based provider that receives payments from a
9school district pursuant to section 256C.4, subsection 1, is
10not an agent of this state or of a political subdivision of
11this state.
124. Rules adopted by the department of education to implement
13this chapter that impose an undue burden on a community-based
14provider are invalid.
155. A community-based provider that receives payments from
16a school district pursuant to section 256C.4, subsection 1,
17shall be given the maximum freedom possible to provide for the
18educational needs of the community-based provider’s students,
19consistent with state and federal law.
20DIVISION VII
21EDUCATION SAVINGS ACCOUNTS
22 Sec. 17. Section 257.11B, subsections 3 and 4, Code 2026,
23are amended to read as follows:
243. a. (1) On or after January 1, but on or before June
2530, preceding the school year for which the education savings
26account payment is requested, the parent or guardian of an
27eligible pupil may request an education savings account payment
28by submitting an application to the department of education.
29(2) On or after October 15, but on or before November 15,
30preceding the semester for which the education savings account
31payment is requested, the parent or guardian of an eligible
32pupil may request an education savings account payment by
33submitting an application to the department of education.
34b. Within thirty days following submission of an
35application, the department of education or third-party entity
-12-1shall notify the parent or guardian of each pupil approved for
2the following school year or semester and specify the amount of
3the education savings account payment for the pupil, if known
4at the time of the notice. As soon as practical following the
5processing of all applications, the department of education or
6third-party entity shall determine the number of pupils in each
7school district approved for the school budget year and provide
8such information to the department of management.
9c. Education savings account payments shall only be
10approved for one school year or one semester, as applicable,
11 and applications must be submitted annually for payments in
12subsequent school years.
134. Each education savings account payment shall be equal to
14the regular program state cost per pupil for the same school
15budget year; provided, however, that an education savings
16account payment shall be equal to fifty percent of the regular
17program state cost per pupil for the same school budget year if
18the pupil’s parent or guardian submitted an application under
19subsection 3, paragraph “a”, subparagraph (2).
20 Sec. 18. Section 257.11B, subsection 6, paragraph a, Code
212026, is amended to read as follows:
22a. For each pupil approved for an education savings account
23payment, the department of education or third-party entity
24shall establish an individual account for that pupil in the
25education savings account fund. The If the pupil’s parent
26or guardian submitted an application under subsection 3,
27paragraph “a”, subparagraph (1), the amount of the pupil’s
28education savings account payment shall be deposited into
29the pupil’s individual account on July 15 or thirty days
30following submission of the application, whichever is later,
31and such amount shall be immediately available for the payment
32of qualified educational expenses incurred by the parent or
33guardian for the pupil during that fiscal year using a payment
34method authorized under subsection 5. If the pupil’s parent or
35guardian submitted an application under subsection 3, paragraph
-13-1“a”, subparagraph (2), the amount of the pupil’s education
2savings account payment shall be deposited into the pupil’s
3individual account within thirty days following submission of
4the application, and such amount shall be immediately available
5for the payment of qualified educational expenses incurred by
6the parent or guardian for the pupil during that fiscal year
7using a payment method authorized under subsection 5.
8DIVISION VIII
9INDEPENDENT ACCREDITING AGENCIES
10 Sec. 19. Section 256.11, subsection 16, Code 2026, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. d. (1) This subsection shall not be
13construed to authorize the state or any political subdivision
14of the state to exercise authority over any nonpublic school or
15construed to require a nonpublic school to modify its academic
16standards for admission or educational program.
17(2) This section shall not be construed to expand the
18authority of the state or any political subdivision of the
19state to impose regulations upon any nonpublic school that are
20not necessary to implement this section.
21(3) Rules adopted by the state board of education to
22implement this section that impose an undue burden on a
23nonpublic school are invalid.
24(4) A nonpublic school shall be given the maximum freedom
25possible to provide for the educational needs of the school’s
26students, consistent with state and federal law.
27DIVISION IX
28SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL
29REQUIREMENTS
30 Sec. 20. DEPARTMENT OF EDUCATION — SCHEDULE OF REQUIRED
31TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS.
321. The department of education shall convene and provide
33administrative support to a task force that shall study the
34training programs in which teachers in this state are required
35to participate pursuant to state law and the requirements
-14-1associated with renewing a teaching license.
22. Any expense incurred by a member of the task force
3shall be the responsibility of the individual member or the
4respective entity represented by the member.
53. The task force shall submit its findings and
6recommendations to the general assembly on or before
7December 31, 2026. The recommendations must include specific
8recommendations related to how to change current law to create
9a more manageable training program schedule and licensure
10renewal requirement schedule for teachers.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill relates to education, including by modifying
15provisions related to charter schools, the Iowa public
16employees’ retirement system, financing programs for charter
17schools and nonpublic schools administered by the Iowa finance
18authority, the statewide voluntary preschool program for
19four-year-old children, education savings accounts, independent
20accrediting agencies, teacher training and licensure, and
21making appropriations, and including applicability and
22retroactive applicability provisions.
23DIVISION I — CHARTER SCHOOL FUNDING. Currently, each
24student enrolled in a charter school under Code chapter 256E
25shall be counted, for state school foundation purposes, in the
26student’s district of residence. The department of education
27is then required to pay to the charter school in which the
28student is enrolled an amount equal to the sum of the regular
29program state cost per pupil for the budget year plus other
30additional costs specified in Code section 256E.8(2)(a). This
31division adds the teacher salary supplement state cost per
32pupil to the amount required to be paid to the charter school.
33This provision applies to school budget years beginning on or
34after July 1, 2026.
35DIVISION II — IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM.
-15-1 The division provides that persons employed by charter schools
2that satisfy all applicable requirements under federal law
3for participation in the retirement system are employees for
4purposes of the provisions of the Iowa public employees’
5retirement system (IPERS). Additionally, the division provides
6that charter schools that satisfy all applicable requirements
7under federal law for participation in the retirement system
8are employers for purposes of the provisions of IPERS.
9The bill provides that in the event of charter school
10closure, the assets of the charter school shall be, after
11payroll obligations but prior to paying creditors, used to
12satisfy any liabilities due and owing to IPERS.
13DIVISION III — EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC
14CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS. The
15division requires the board of directors of a school district
16to allow a student who resides within the district, and
17who is enrolled in a charter school, to participate in any
18extracurricular interscholastic athletic contest or competition
19that is provided by the school district pursuant to the terms
20of an agreement between the board of directors of the school
21district and the governing board of the charter school if the
22extracurricular interscholastic athletic contest or competition
23has not been provided by the charter school during the two
24immediately preceding school years and if the charter school
25has not entered into an agreement under Code section 280.13A
26(sharing interscholastic activities) with another school
27district, nonpublic school, or charter school that provides
28for the eligibility of students enrolled in the charter school
29to participate in the extracurricular interscholastic athletic
30contest or competition that is being provided by that school.
31The division requires the board of directors of a school
32district to allow a student who resides within a contiguous
33school district, and who is enrolled in a charter school, to
34participate in any extracurricular interscholastic athletic
35contest or competition that is provided by the school district
-16-1pursuant to the terms of an agreement between the board of
2directors of the school district and the governing board of
3the charter school if the extracurricular interscholastic
4athletic contest or competition has not been provided by the
5charter school or by the student’s school district of residence
6during the two immediately preceding school years and if
7the charter school has not entered into an agreement under
8Code section 280.13A with another school district, nonpublic
9school, or charter school that provides for the eligibility of
10students enrolled in the charter school to participate in the
11extracurricular interscholastic athletic contest or competition
12that is being provided by that school.
13The division provides that if the board of directors of
14a school district has established a fee for the cost of a
15student’s participation in an extracurricular interscholastic
16athletic contest or competition, a student who is enrolled in a
17charter school and is participating in a contest or competition
18at a public school pursuant to the division’s provisions, or
19the student’s parent or guardian, shall be responsible for the
20payment of such fee.
21The division requires a student who is enrolled in a charter
22school and is participating in a contest or competition at
23a public school pursuant to the division’s provisions to
24participate under the same conditions as a student who is
25enrolled in the school district, including meeting the school
26district’s student code of conduct requirements.
27The division provides that a student who participates in an
28extracurricular interscholastic athletic contest or competition
29pursuant to the division’s provisions is deemed to satisfy the
30residence requirements for purposes of Code section 256.46
31(rules for participation in extracurricular activities by
32certain children).
33DIVISION IV — LOCAL EDUCATION AGENCY STATUS. The division
34provides that the governing board of a charter school that is
35approved under Code section 256E.5 (founding group-state board
-17-1model) is a local education agency for the purpose of receiving
2federal funds for all attendance centers that are under the
3jurisdiction of the governing board.
4DIVISION V — CHARTER SCHOOL AND NONPUBLIC SCHOOL
5FACILITIES. The division requires the Iowa finance authority
6(IFA) to cooperate with charter schools established pursuant
7to Code chapter 256E and accredited nonpublic schools in the
8creation, administration, and funding of a charter school and
9accredited nonpublic school facilities bond program to assist
10charter schools and accredited nonpublic schools in financing
11the purchase, acquisition, development, reconstruction,
12remodeling, or replacement of school buildings. The division
13allows the IFA to issue its bonds and notes for the purpose
14of funding the nonrecurring cost of purchasing, acquiring,
15developing, reconstructing, remodeling, or replacing a school
16building for a charter school or accredited nonpublic school
17and to enter into lending agreements or purchase agreements
18with bondholders or noteholders that contain certain specified
19provisions. The division establishes the sources from which
20the principal of, premium, and interest on the bonds or
21notes are payable. The bonds or notes issued by the IFA in
22connection with the program are exempt from taxation by this
23state and the interest on the bonds or notes is exempt from
24state income tax, both personal and corporate. This provision
25applies retroactively to January 1, 2026, for tax years
26beginning on or after that date.
27The division establishes a charter school facilities
28revolving loan program fund and an accredited nonpublic school
29facilities revolving loan program fund within the IFA to
30assist charter schools and accredited nonpublic schools in
31acquiring suitable school facilities. The moneys in the funds
32are appropriated to the IFA for use in the development and
33operation of a charter school facilities revolving loan program
34and an accredited nonpublic school facilities revolving loan
35program to assist charter schools and accredited nonpublic
-18-1schools in purchasing, acquiring, developing, reconstructing,
2remodeling, or replacing school buildings. The division also
3allows the IFA to make or enter into a liquidity or credit
4enhancement agreement with a charter school or an accredited
5nonpublic school to assist the charter school or accredited
6nonpublic school in purchasing, acquiring, developing,
7reconstructing, remodeling, or replacing school buildings.
8DIVISION VI — STATEWIDE VOLUNTARY PRESCHOOL PROGRAM
9FOR FOUR-YEAR-OLD CHILDREN. The division authorizes school
10districts to enter into a Code chapter 28E agreement with a
11community-based provider allowing the community-based provider
12to provide instruction as part of the approved local program,
13and the division requires school districts to enter into such
14an agreement upon the request of a community-based provider.
15Additionally, the division prohibits such Code chapter 28E
16agreements from limiting the number of eligible students who
17may receive instruction from a community-based provider as part
18of the approved local program.
19The division prohibits Code chapter 256C (statewide
20voluntary preschool program for four-year-old children)
21from being construed to authorize the state or any political
22subdivision of the state to exercise authority over
23any community-based provider or construed to require a
24community-based provider to modify its academic standards
25for admission or educational program in order to receive
26payments from a school district under the statewide voluntary
27preschool program (SWVPP). The division also prohibits Code
28chapter 256C from being construed to expand the authority of
29the state or any political subdivision of the state to impose
30regulations upon any community-based provider that are not
31necessary to implement this section. The division provides
32that a community-based provider that receives payments from a
33school district under the SWVPP is not an agent of this state
34or of a political subdivision of this state. Rules adopted by
35the department of education to implement the SWVPP that impose
-19-1an undue burden on a community-based provider are invalid. The
2division requires that a community-based provider that receives
3payments from a school district under the SWVPP be given the
4maximum freedom possible to provide for the educational needs
5of the community-based provider’s students, consistent with
6state and federal law.
7DIVISION VII — EDUCATION SAVINGS ACCOUNTS. The education
8savings account program is a program that provides funds to
9pupils who attend nonpublic schools to pay for qualified
10educational expenses, including but not limited to tuition,
11tutoring or cognitive skill training fees, educational therapy
12costs, software expenses, and expenses related to course
13materials. Under current law, the parent or guardian of a
14pupil is required to submit an application for payment under
15the education savings account program to the department of
16education on or after January 1, but on or before June 30,
17preceding the school year for which the education savings
18account payment is requested. The division allows the parent
19or guardian of a pupil to submit such an application on or
20after October 15, but on or before November 15, preceding the
21semester for which the education savings account payment is
22requested. Additionally, under current law each education
23savings account payment is equal to the regular program state
24cost per pupil for the same school budget year. The division
25provides that, if the parent or guardian of a pupil submitted
26such an application on or after December 1, but on or before
27December 20, preceding the semester for which the education
28savings account payment is requested, the education savings
29account payment for such pupil is equal to 50 percent of the
30regular program state cost per pupil for the same school budget
31year. The division makes conforming changes.
32DIVISION VIII — INDEPENDENT ACCREDITING AGENCIES. Current
33law authorizes a nonpublic school to be accredited by an
34approved independent accrediting agency instead of by the
35state board of education if the nonpublic school is accredited
-20-1by an independent accrediting agency that is on a list of
2approved independent accrediting agencies maintained by the
3state board of education. The division provides that these
4provisions shall not be construed to authorize the state or any
5political subdivision of the state to exercise authority over
6any nonpublic school or construed to require a nonpublic school
7to modify its academic standards for admission or educational
8program. The division also provides that these provisions
9shall not be construed to expand the authority of the state or
10any political subdivision of the state to impose regulations
11upon any nonpublic school that are not necessary to implement
12the state’s educational standards. The division provides that
13rules adopted by the state board of education to implement
14these provisions that impose an undue burden on a nonpublic
15school are invalid. The division requires that a nonpublic
16school shall be given the maximum freedom possible to provide
17for the educational needs of the school’s students, consistent
18with state and federal law.
19DIVISION IX — SCHEDULE OF TEACHER TRAININGS AND LICENSURE
20RENEWAL REQUIREMENTS. The division requires the department
21of education to convene a task force to study the training
22programs in which teachers in this state are required to
23participate pursuant to state law and the requirements
24associated with renewing a teaching license. The task force
25is required to submit its findings and recommendations to
26the general assembly on or before December 31, 2026. The
27recommendations must include specific recommendations related
28to how to change current law to create a more manageable
29training program schedule and licensure renewal requirement
30schedule for teachers.
-21-jda/jh
2related to charter schools, the Iowa public employees’
3retirement system, financing programs for charter schools
4and nonpublic schools administered by the Iowa finance
5authority, the statewide voluntary preschool program
6for four-year-old children, education savings accounts,
7independent accrediting agencies, teacher training and
8licensure, and making appropriations, and including
9applicability and retroactive applicability provisions.
10BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2CHARTER SCHOOL FUNDING
3 Section 1. Section 256E.8, subsection 2, paragraph a, Code
42026, is amended to read as follows:
5a. The charter school in which the student is enrolled
6shall receive under paragraph “c” an amount equal to the sum
7of the regular program state cost per pupil for the budget
8year plus the teacher leadership supplement state cost per
9pupil, the teacher salary supplement state cost per pupil, the
10professional development supplement state cost per pupil, and
11the early intervention supplement state cost per pupil for
12the budget year as provided in section 257.9 plus any moneys
13that would be due to the school district of residence for the
14student as a result of the non-English speaking weighting under
15section 280.4, subsection 3, for the budget year multiplied by
16the state cost per pupil for the budget year. If a student
17is an eligible pupil under section 261E.6, the charter school
18shall pay the tuition reimbursement amount to an eligible
19postsecondary institution as provided in section 261E.7.
20 Sec. 2. APPLICABILITY. This division of this Act applies to
21school budget years beginning on or after July 1, 2026.
22DIVISION II
23IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
24 Sec. 3. Section 97B.1A, subsection 8, paragraph a, Code
252026, is amended by adding the following new subparagraph:
26 NEW SUBPARAGRAPH. (13) Persons employed by a charter
27school established pursuant to chapter 256E that satisfies all
28applicable requirements under federal law for participation in
29the retirement system.
30 Sec. 4. Section 97B.1A, subsection 9, paragraph a, Code
312026, is amended to read as follows:
32a. “Employer” means the state of Iowa, the counties,
33municipalities, agencies, public school districts, charter
34schools established pursuant to chapter 256E that satisfy all
35applicable requirements under federal law for participation
-1-1in the retirement system, all political subdivisions, and
2all of their departments and instrumentalities, including
3area agencies on aging, other than those employing persons as
4specified in subsection 8, paragraph “b”, subparagraph (7), and
5joint planning commissions created under chapter 28E or 28I.
6 Sec. 5. Section 256E.11, subsection 2, Code 2026, is amended
7to read as follows:
82. In the event of a charter school closure, the assets of
9the charter school shall be used first to satisfy outstanding
10payroll obligations for employees of the school and any
11liabilities due and owing to the Iowa public employees’
12retirement system, then to creditors of the school, then to the
13public school district in which the charter school operated,
14if applicable, and then to the state general fund. If the
15assets of the charter school are insufficient to pay all
16obligations of the charter school, the prioritization of the
17distribution of assets shall be consistent with this subsection
18and otherwise determined by the district court.
19DIVISION III
20EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR
21COMPETITIONS PROVIDED BY PUBLIC SCHOOLS
22 Sec. 6. Section 280.13D, Code 2026, is amended to read as
23follows:
24280.13D Participation in extracurricular interscholastic
25athletic contests or competitions provided by public schools.
261. a. The board of directors of a school district shall
27allow a student who resides within the school district, and
28who is enrolled in a nonpublic school or a charter school
29established pursuant to chapter 256E, to participate in any
30extracurricular interscholastic athletic contest or competition
31that is provided by the school district pursuant to the terms
32of an agreement between the board of directors of the school
33district and the authorities in charge of the nonpublic school
34or the governing board of the charter school, as applicable,
35 that provides for the eligibility of the student, if all of the
-2-1following criteria are satisfied:
2(1) The extracurricular interscholastic athletic contest or
3competition has not been provided by the nonpublic school or
4the charter school during the two immediately preceding school
5years.
6(2) The nonpublic school or charter school has not entered
7into an agreement under section 280.13A with another school
8district, nonpublic school, or charter school that provides
9for the eligibility of students enrolled in the nonpublic
10school or charter school to participate in the extracurricular
11interscholastic athletic contest or competition that is being
12provided by that school district, nonpublic school, or charter
13school.
14b. The board of directors of a school district shall allow
15a student who resides within a contiguous school district, and
16who is enrolled in a nonpublic school or charter school, to
17participate in any extracurricular interscholastic athletic
18contest or competition that is provided by the school district
19pursuant to the terms of an agreement between the board of
20directors of the school district and the authorities in charge
21of the nonpublic school or the governing board of the charter
22school, as applicable, that provides for the eligibility of the
23student, if all of the following criteria are satisfied:
24(1) The extracurricular interscholastic athletic contest
25or competition has not been provided by the nonpublic school
26or charter school or by the student’s school district of
27residence, during the two immediately preceding school years.
28(2) The nonpublic school has not entered into an agreement
29under section 280.13A with another school district, nonpublic
30school, or charter school that provides for the eligibility of
31students enrolled in the nonpublic school or charter school to
32participate in the extracurricular interscholastic athletic
33contest or competition that is being provided by that school
34district, nonpublic school, or charter school.
35c. If the board of directors of a school district has
-3-1established a fee for the cost of a student’s participation
2in an extracurricular interscholastic athletic contest or
3competition, a student who is enrolled in a nonpublic school
4or a charter school and is participating in a contest or
5competition at a public school pursuant to paragraph “a” or
6“b”, or the student’s parent or guardian, shall be responsible
7for the payment of such fee. The amount of such fee shall not
8exceed the amount of the fee the board of directors of the
9school district has established for students who are enrolled
10in the school district.
112. A student who is enrolled in a nonpublic school or a
12charter school and is participating in a contest or competition
13at a public school pursuant to subsection 1, paragraph “a” or
14“b”, shall participate under the same conditions as a student
15who is enrolled in the school district, including meeting the
16school district’s student code of conduct requirements.
173. A student who participates in an extracurricular
18interscholastic athletic contest or competition pursuant
19to this section shall be deemed to satisfy the residence
20requirements for purposes of section 256.46.
21DIVISION IV
22LOCAL EDUCATION AGENCY STATUS
23 Sec. 7. Section 256E.5, Code 2026, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 1A. The governing board of a charter school
26that is approved under this section shall be designated a local
27education agency for the purpose of receiving federal funds for
28all attendance centers that are under the jurisdiction of the
29governing board.
30DIVISION V
31CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES
32 Sec. 8. NEW SECTION. 16.163 Authority to issue charter
33school and accredited nonpublic school facilities bonds and
34notes.
35The authority shall assist charter schools established
-4-1pursuant to chapter 256E and nonpublic schools that are
2accredited pursuant to section 256.11, and the authority
3shall have all of the powers delegated to it in a chapter 28E
4agreement by a charter school, accredited nonpublic school,
5or private developer contracting with a charter school or an
6accredited nonpublic school to purchase, acquire, develop,
7reconstruct, remodel, or replace school buildings, for the
8charter school or accredited nonpublic school, with respect
9to the issuance or securing of bonds or notes as provided in
10section 256J.1.
11 Sec. 9. NEW SECTION. 16.164 Charter school facilities
12revolving loan program fund — credit enhancement agreements.
131. a. A charter school facilities revolving loan program
14fund is created within the authority to assist charter schools
15established pursuant to chapter 256E in acquiring suitable
16school facilities. The moneys in the charter school facilities
17revolving loan program fund are appropriated to the authority
18for use in the development and operation of a charter school
19facilities revolving loan program to assist charter schools in
20purchasing, acquiring, developing, reconstructing, remodeling,
21or replacing school buildings.
22b. Moneys transferred by the authority for deposit
23in the charter school facilities revolving loan program
24fund, moneys appropriated to the charter school facilities
25revolving loan program, and any other moneys available to
26and obtained or accepted by the authority for placement in
27the charter school facilities revolving loan program fund
28shall be deposited in the fund. Additionally, payment of
29interest, recaptures of awards, and other repayments to the
30charter school facilities revolving loan program fund shall
31be deposited in the fund. Notwithstanding section 12C.7,
32subsection 2, interest or earnings on moneys in the charter
33school facilities revolving loan program fund shall be credited
34to the fund. Notwithstanding section 8.33, moneys that remain
35unencumbered or unobligated at the end of the fiscal year shall
-5-1not revert but shall remain available for the same purpose in
2the succeeding fiscal year.
3c. The authority shall annually allocate moneys available in
4the charter school facilities revolving loan program fund to
5assist charter schools in purchasing, acquiring, developing,
6reconstructing, remodeling, or replacing school buildings.
72. In addition to the charter school facilities revolving
8loan program authorized pursuant to subsection 1, the authority
9is authorized to make or enter into a liquidity or credit
10enhancement agreement with a charter school established
11pursuant to chapter 256E to assist the charter school in
12purchasing, acquiring, developing, reconstructing, remodeling,
13or replacing school buildings.
14 Sec. 10. NEW SECTION. 16.165 Accredited nonpublic school
15facilities revolving loan program fund — credit enhancement
16agreements.
171. a. An accredited nonpublic school facilities revolving
18loan program fund is created within the authority to assist
19nonpublic schools that are accredited pursuant to section
20256.11 in acquiring suitable school facilities. The moneys
21in the accredited nonpublic school facilities revolving loan
22program fund are appropriated to the authority for use in the
23development and operation of an accredited nonpublic school
24facilities revolving loan program to assist nonpublic schools
25that are accredited pursuant to section 256.11 in purchasing,
26acquiring, developing, reconstructing, remodeling, or replacing
27school buildings.
28b. Moneys transferred by the authority for deposit in
29the accredited nonpublic school facilities revolving loan
30program fund, moneys appropriated to the accredited nonpublic
31school facilities revolving loan program, and any other
32moneys available to and obtained or accepted by the authority
33for placement in the accredited nonpublic school facilities
34revolving loan program fund shall be deposited in the fund.
35Additionally, payment of interest, recaptures of awards,
-6-1and other repayments to the accredited nonpublic school
2facilities revolving loan program fund shall be deposited
3in the fund. Notwithstanding section 12C.7, subsection 2,
4interest or earnings on moneys in the accredited nonpublic
5school facilities revolving loan program fund shall be credited
6to the fund. Notwithstanding section 8.33, moneys that remain
7unencumbered or unobligated at the end of the fiscal year shall
8not revert but shall remain available for the same purpose in
9the succeeding fiscal year.
10c. The authority shall annually allocate moneys available
11in the accredited nonpublic school facilities revolving
12loan program fund to assist nonpublic schools that are
13accredited pursuant to section 256.11 in purchasing, acquiring,
14developing, reconstructing, remodeling, or replacing school
15buildings.
162. In addition to the accredited nonpublic school
17facilities revolving loan program authorized pursuant to
18subsection 1, the authority is authorized to make or enter into
19a liquidity or credit enhancement agreement with a nonpublic
20school that is accredited pursuant to section 256.11 to assist
21the accredited nonpublic school in purchasing, acquiring,
22developing, reconstructing, remodeling, or replacing school
23buildings.
24 Sec. 11. NEW SECTION. 256J.1 Charter school and accredited
25nonpublic school facilities bond program.
261. As used in this section:
27a. “Authority” means the Iowa finance authority.
28b. “Bonds” means bonds which are payable solely as provided
29in this section.
30c. “School” means all of the following:
31(1) A charter school established pursuant to chapter 256E.
32(2) A nonpublic school that is accredited pursuant to
33section 256.11.
342. The authority shall cooperate with schools that wish to
35participate in the creation, administration, and funding of
-7-1a charter school and accredited nonpublic school facilities
2bond program to assist such schools in financing the purchase,
3acquisition, development, reconstruction, remodeling, or
4replacement of school buildings.
53. The authority may issue its bonds and notes for the
6purpose of funding the nonrecurring cost of purchasing,
7acquiring, developing, reconstructing, remodeling, or replacing
8a school building for a school.
94. The authority may issue its bonds and notes for the
10purposes of this section and may enter into one or more lending
11agreements or purchase agreements with one or more bondholders
12or noteholders containing the terms and conditions of the
13repayment of and the security for the bonds or notes. The
14authority and the bondholders or noteholders or a trustee
15agent designated by the authority may enter into agreements to
16provide for any of the following:
17a. That the proceeds of the bonds and notes and the
18investments of the proceeds may be received, held, and
19disbursed by the authority or by a trustee or agent designated
20by the authority.
21b. That the bondholders or noteholders or a trustee or
22agent designated by the authority may collect, invest, and
23apply the amount payable under the loan agreements or any
24other instruments securing the debt obligations under the loan
25agreements.
26c. That the bondholders or noteholders may enforce the
27remedies provided in the loan agreements or other instruments
28on their own behalf without the appointment or designation of a
29trustee. If there is a default in the principal of or interest
30on the bonds or notes or in the performance of any agreement
31contained in the loan agreements or other instruments, the
32payment or performance may be enforced in accordance with the
33loan agreement or other instrument.
34d. Other terms and conditions as deemed necessary or
35appropriate by the authority.
-8- 15. The powers granted the authority under this section are
2in addition to other powers contained in chapter 16. All other
3provisions of chapter 16, except section 16.28, subsection
44, apply to bonds or notes issued and powers granted to the
5authority under this section, except to the extent they are
6inconsistent with this section.
76. All bonds or notes issued by the authority in connection
8with the program are exempt from taxation by this state and the
9interest on the bonds or notes is exempt from state income tax,
10both personal and corporate.
117. a. The authority may provide in the resolution, trust
12agreement, or other instrument authorizing the issuance of its
13bonds or notes pursuant to this section that the principal of,
14premium, and interest on the bonds or notes are payable from
15any of the following and may pledge the same to its bonds and
16notes:
17(1) From the amounts received by a charter school under
18section 256E.8, subsection 2, paragraph “c”.
19(2) From the amounts received by a nonpublic school under
20section 257.11B, subsection 5.
21(3) From the income derived from gifts and bequests made to
22the school for such purposes.
23(4) From the other funds or accounts established by the
24authority in connection with the program or the sale and
25issuance of its bonds or notes.
26b. No obligation created hereunder shall ever be or become
27a charge against the state of Iowa but all such obligations,
28including principal and interest, shall be payable solely as
29provided in this section.
308. The authority may establish reserve funds to secure
31one or more issues of its bonds or notes. The authority may
32deposit in a reserve fund established under this subsection
33the proceeds of the sale of its bonds or notes and other money
34which is made available from any other source.
359. A pledge made in respect of bonds or notes is valid
-9-1and binding from the time the pledge is made. The money or
2property so pledged and received after the pledge by the
3authority is immediately subject to the lien of the pledge
4without physical delivery or further act. The lien of the
5pledge is valid and binding as against all persons having
6claims of any kind in tort, contract, or otherwise against
7the authority whether or not the parties have notice of the
8lien. Neither the resolution, trust agreement, or any other
9instrument by which a pledge is created needs to be recorded,
10filed, or perfected under chapter 554, to be valid, binding, or
11effective against all persons.
1210. The members of the authority or persons executing the
13bonds or notes are not personally liable on the bonds or notes
14and are not subject to personal liability or accountability by
15reason of the issuance of the bonds or notes.
1611. The bonds or notes issued by the authority are not
17an indebtedness or other liability of the state or of a
18political subdivision of the state within the meaning of
19any constitutional or statutory debt limitations, but are
20special obligations of the authority and are payable solely as
21described in subsection 7, paragraph “a”, to the extent that
22the amounts are designated in the resolution, trust agreement,
23or other instrument of the authority authorizing the issuance
24of the bonds or notes as being available as security for the
25bonds or notes. The authority shall not pledge the faith or
26credit of the state or of a political subdivision of the state
27to the payment of any bonds or notes. The issuance of any bonds
28or notes by the authority does not directly, indirectly, or
29contingently obligate the state or a political subdivision of
30the state to apply money from, or levy, or pledge any form of
31taxation whatsoever to the payment of the bonds or notes.
32 Sec. 12. Section 422.7, subsection 2, Code 2026, is amended
33by adding the following new paragraph:
34 NEW PARAGRAPH. 0k. Charter school and accredited nonpublic
35school facilities bond program bonds pursuant to section
-10-1256J.1.
2 Sec. 13. CODE EDITOR DIRECTIVE. The Code editor shall
3designate sections 16.163 through 16.165, as enacted in
4this Act, as new sections within chapter 16, subchapter X,
5part 6, and may redesignate the preexisting part and correct
6internal references as necessary, including references to part
7headnotes.
8 Sec. 14. RETROACTIVE APPLICABILITY. The following applies
9retroactively to January 1, 2026, for tax years beginning on
10or after that date:
11The section of this division of this Act amending section
12422.7.
13DIVISION VI
14STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD
15CHILDREN
16 Sec. 15. Section 256C.3, subsection 4, Code 2026, is amended
17by adding the following new paragraph:
18 NEW PARAGRAPH. e. (1) A school district may enter into
19a chapter 28E agreement with a community-based provider to
20allow the community-based provider to provide high-quality
21instruction as part of the approved local program.
22(2) Upon the request of a community-based provider, a
23school district shall enter into a chapter 28E agreement with a
24community-based provider to allow the community-based provider
25to provide high-quality instruction as part of the approved
26local program.
27(3) A chapter 28E agreement entered into pursuant to this
28paragraph shall not limit the number of eligible students who
29may receive high-quality instruction from a community-based
30provider as part of the approved local program.
31 Sec. 16. NEW SECTION. 256C.7 Limitation of authority.
321. This chapter shall not be construed to authorize the
33state or any political subdivision of the state to exercise
34authority over any community-based provider or construed to
35require a community-based provider to modify its academic
-11-1standards for admission or educational program in order to
2receive payments from a school district pursuant to section
3256C.4, subsection 1.
42. This chapter shall not be construed to expand the
5authority of the state or any political subdivision of the
6state to impose regulations upon any community-based provider
7that are not necessary to implement this chapter.
83. A community-based provider that receives payments from a
9school district pursuant to section 256C.4, subsection 1, is
10not an agent of this state or of a political subdivision of
11this state.
124. Rules adopted by the department of education to implement
13this chapter that impose an undue burden on a community-based
14provider are invalid.
155. A community-based provider that receives payments from
16a school district pursuant to section 256C.4, subsection 1,
17shall be given the maximum freedom possible to provide for the
18educational needs of the community-based provider’s students,
19consistent with state and federal law.
20DIVISION VII
21EDUCATION SAVINGS ACCOUNTS
22 Sec. 17. Section 257.11B, subsections 3 and 4, Code 2026,
23are amended to read as follows:
243. a. (1) On or after January 1, but on or before June
2530, preceding the school year for which the education savings
26account payment is requested, the parent or guardian of an
27eligible pupil may request an education savings account payment
28by submitting an application to the department of education.
29(2) On or after October 15, but on or before November 15,
30preceding the semester for which the education savings account
31payment is requested, the parent or guardian of an eligible
32pupil may request an education savings account payment by
33submitting an application to the department of education.
34b. Within thirty days following submission of an
35application, the department of education or third-party entity
-12-1shall notify the parent or guardian of each pupil approved for
2the following school year or semester and specify the amount of
3the education savings account payment for the pupil, if known
4at the time of the notice. As soon as practical following the
5processing of all applications, the department of education or
6third-party entity shall determine the number of pupils in each
7school district approved for the school budget year and provide
8such information to the department of management.
9c. Education savings account payments shall only be
10approved for one school year or one semester, as applicable,
11 and applications must be submitted annually for payments in
12subsequent school years.
134. Each education savings account payment shall be equal to
14the regular program state cost per pupil for the same school
15budget year; provided, however, that an education savings
16account payment shall be equal to fifty percent of the regular
17program state cost per pupil for the same school budget year if
18the pupil’s parent or guardian submitted an application under
19subsection 3, paragraph “a”, subparagraph (2).
20 Sec. 18. Section 257.11B, subsection 6, paragraph a, Code
212026, is amended to read as follows:
22a. For each pupil approved for an education savings account
23payment, the department of education or third-party entity
24shall establish an individual account for that pupil in the
25education savings account fund. The If the pupil’s parent
26or guardian submitted an application under subsection 3,
27paragraph “a”, subparagraph (1), the amount of the pupil’s
28education savings account payment shall be deposited into
29the pupil’s individual account on July 15 or thirty days
30following submission of the application, whichever is later,
31and such amount shall be immediately available for the payment
32of qualified educational expenses incurred by the parent or
33guardian for the pupil during that fiscal year using a payment
34method authorized under subsection 5. If the pupil’s parent or
35guardian submitted an application under subsection 3, paragraph
-13-1“a”, subparagraph (2), the amount of the pupil’s education
2savings account payment shall be deposited into the pupil’s
3individual account within thirty days following submission of
4the application, and such amount shall be immediately available
5for the payment of qualified educational expenses incurred by
6the parent or guardian for the pupil during that fiscal year
7using a payment method authorized under subsection 5.
8DIVISION VIII
9INDEPENDENT ACCREDITING AGENCIES
10 Sec. 19. Section 256.11, subsection 16, Code 2026, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. d. (1) This subsection shall not be
13construed to authorize the state or any political subdivision
14of the state to exercise authority over any nonpublic school or
15construed to require a nonpublic school to modify its academic
16standards for admission or educational program.
17(2) This section shall not be construed to expand the
18authority of the state or any political subdivision of the
19state to impose regulations upon any nonpublic school that are
20not necessary to implement this section.
21(3) Rules adopted by the state board of education to
22implement this section that impose an undue burden on a
23nonpublic school are invalid.
24(4) A nonpublic school shall be given the maximum freedom
25possible to provide for the educational needs of the school’s
26students, consistent with state and federal law.
27DIVISION IX
28SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL
29REQUIREMENTS
30 Sec. 20. DEPARTMENT OF EDUCATION — SCHEDULE OF REQUIRED
31TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS.
321. The department of education shall convene and provide
33administrative support to a task force that shall study the
34training programs in which teachers in this state are required
35to participate pursuant to state law and the requirements
-14-1associated with renewing a teaching license.
22. Any expense incurred by a member of the task force
3shall be the responsibility of the individual member or the
4respective entity represented by the member.
53. The task force shall submit its findings and
6recommendations to the general assembly on or before
7December 31, 2026. The recommendations must include specific
8recommendations related to how to change current law to create
9a more manageable training program schedule and licensure
10renewal requirement schedule for teachers.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill relates to education, including by modifying
15provisions related to charter schools, the Iowa public
16employees’ retirement system, financing programs for charter
17schools and nonpublic schools administered by the Iowa finance
18authority, the statewide voluntary preschool program for
19four-year-old children, education savings accounts, independent
20accrediting agencies, teacher training and licensure, and
21making appropriations, and including applicability and
22retroactive applicability provisions.
23DIVISION I — CHARTER SCHOOL FUNDING. Currently, each
24student enrolled in a charter school under Code chapter 256E
25shall be counted, for state school foundation purposes, in the
26student’s district of residence. The department of education
27is then required to pay to the charter school in which the
28student is enrolled an amount equal to the sum of the regular
29program state cost per pupil for the budget year plus other
30additional costs specified in Code section 256E.8(2)(a). This
31division adds the teacher salary supplement state cost per
32pupil to the amount required to be paid to the charter school.
33This provision applies to school budget years beginning on or
34after July 1, 2026.
35DIVISION II — IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM.
-15-1 The division provides that persons employed by charter schools
2that satisfy all applicable requirements under federal law
3for participation in the retirement system are employees for
4purposes of the provisions of the Iowa public employees’
5retirement system (IPERS). Additionally, the division provides
6that charter schools that satisfy all applicable requirements
7under federal law for participation in the retirement system
8are employers for purposes of the provisions of IPERS.
9The bill provides that in the event of charter school
10closure, the assets of the charter school shall be, after
11payroll obligations but prior to paying creditors, used to
12satisfy any liabilities due and owing to IPERS.
13DIVISION III — EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC
14CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS. The
15division requires the board of directors of a school district
16to allow a student who resides within the district, and
17who is enrolled in a charter school, to participate in any
18extracurricular interscholastic athletic contest or competition
19that is provided by the school district pursuant to the terms
20of an agreement between the board of directors of the school
21district and the governing board of the charter school if the
22extracurricular interscholastic athletic contest or competition
23has not been provided by the charter school during the two
24immediately preceding school years and if the charter school
25has not entered into an agreement under Code section 280.13A
26(sharing interscholastic activities) with another school
27district, nonpublic school, or charter school that provides
28for the eligibility of students enrolled in the charter school
29to participate in the extracurricular interscholastic athletic
30contest or competition that is being provided by that school.
31The division requires the board of directors of a school
32district to allow a student who resides within a contiguous
33school district, and who is enrolled in a charter school, to
34participate in any extracurricular interscholastic athletic
35contest or competition that is provided by the school district
-16-1pursuant to the terms of an agreement between the board of
2directors of the school district and the governing board of
3the charter school if the extracurricular interscholastic
4athletic contest or competition has not been provided by the
5charter school or by the student’s school district of residence
6during the two immediately preceding school years and if
7the charter school has not entered into an agreement under
8Code section 280.13A with another school district, nonpublic
9school, or charter school that provides for the eligibility of
10students enrolled in the charter school to participate in the
11extracurricular interscholastic athletic contest or competition
12that is being provided by that school.
13The division provides that if the board of directors of
14a school district has established a fee for the cost of a
15student’s participation in an extracurricular interscholastic
16athletic contest or competition, a student who is enrolled in a
17charter school and is participating in a contest or competition
18at a public school pursuant to the division’s provisions, or
19the student’s parent or guardian, shall be responsible for the
20payment of such fee.
21The division requires a student who is enrolled in a charter
22school and is participating in a contest or competition at
23a public school pursuant to the division’s provisions to
24participate under the same conditions as a student who is
25enrolled in the school district, including meeting the school
26district’s student code of conduct requirements.
27The division provides that a student who participates in an
28extracurricular interscholastic athletic contest or competition
29pursuant to the division’s provisions is deemed to satisfy the
30residence requirements for purposes of Code section 256.46
31(rules for participation in extracurricular activities by
32certain children).
33DIVISION IV — LOCAL EDUCATION AGENCY STATUS. The division
34provides that the governing board of a charter school that is
35approved under Code section 256E.5 (founding group-state board
-17-1model) is a local education agency for the purpose of receiving
2federal funds for all attendance centers that are under the
3jurisdiction of the governing board.
4DIVISION V — CHARTER SCHOOL AND NONPUBLIC SCHOOL
5FACILITIES. The division requires the Iowa finance authority
6(IFA) to cooperate with charter schools established pursuant
7to Code chapter 256E and accredited nonpublic schools in the
8creation, administration, and funding of a charter school and
9accredited nonpublic school facilities bond program to assist
10charter schools and accredited nonpublic schools in financing
11the purchase, acquisition, development, reconstruction,
12remodeling, or replacement of school buildings. The division
13allows the IFA to issue its bonds and notes for the purpose
14of funding the nonrecurring cost of purchasing, acquiring,
15developing, reconstructing, remodeling, or replacing a school
16building for a charter school or accredited nonpublic school
17and to enter into lending agreements or purchase agreements
18with bondholders or noteholders that contain certain specified
19provisions. The division establishes the sources from which
20the principal of, premium, and interest on the bonds or
21notes are payable. The bonds or notes issued by the IFA in
22connection with the program are exempt from taxation by this
23state and the interest on the bonds or notes is exempt from
24state income tax, both personal and corporate. This provision
25applies retroactively to January 1, 2026, for tax years
26beginning on or after that date.
27The division establishes a charter school facilities
28revolving loan program fund and an accredited nonpublic school
29facilities revolving loan program fund within the IFA to
30assist charter schools and accredited nonpublic schools in
31acquiring suitable school facilities. The moneys in the funds
32are appropriated to the IFA for use in the development and
33operation of a charter school facilities revolving loan program
34and an accredited nonpublic school facilities revolving loan
35program to assist charter schools and accredited nonpublic
-18-1schools in purchasing, acquiring, developing, reconstructing,
2remodeling, or replacing school buildings. The division also
3allows the IFA to make or enter into a liquidity or credit
4enhancement agreement with a charter school or an accredited
5nonpublic school to assist the charter school or accredited
6nonpublic school in purchasing, acquiring, developing,
7reconstructing, remodeling, or replacing school buildings.
8DIVISION VI — STATEWIDE VOLUNTARY PRESCHOOL PROGRAM
9FOR FOUR-YEAR-OLD CHILDREN. The division authorizes school
10districts to enter into a Code chapter 28E agreement with a
11community-based provider allowing the community-based provider
12to provide instruction as part of the approved local program,
13and the division requires school districts to enter into such
14an agreement upon the request of a community-based provider.
15Additionally, the division prohibits such Code chapter 28E
16agreements from limiting the number of eligible students who
17may receive instruction from a community-based provider as part
18of the approved local program.
19The division prohibits Code chapter 256C (statewide
20voluntary preschool program for four-year-old children)
21from being construed to authorize the state or any political
22subdivision of the state to exercise authority over
23any community-based provider or construed to require a
24community-based provider to modify its academic standards
25for admission or educational program in order to receive
26payments from a school district under the statewide voluntary
27preschool program (SWVPP). The division also prohibits Code
28chapter 256C from being construed to expand the authority of
29the state or any political subdivision of the state to impose
30regulations upon any community-based provider that are not
31necessary to implement this section. The division provides
32that a community-based provider that receives payments from a
33school district under the SWVPP is not an agent of this state
34or of a political subdivision of this state. Rules adopted by
35the department of education to implement the SWVPP that impose
-19-1an undue burden on a community-based provider are invalid. The
2division requires that a community-based provider that receives
3payments from a school district under the SWVPP be given the
4maximum freedom possible to provide for the educational needs
5of the community-based provider’s students, consistent with
6state and federal law.
7DIVISION VII — EDUCATION SAVINGS ACCOUNTS. The education
8savings account program is a program that provides funds to
9pupils who attend nonpublic schools to pay for qualified
10educational expenses, including but not limited to tuition,
11tutoring or cognitive skill training fees, educational therapy
12costs, software expenses, and expenses related to course
13materials. Under current law, the parent or guardian of a
14pupil is required to submit an application for payment under
15the education savings account program to the department of
16education on or after January 1, but on or before June 30,
17preceding the school year for which the education savings
18account payment is requested. The division allows the parent
19or guardian of a pupil to submit such an application on or
20after October 15, but on or before November 15, preceding the
21semester for which the education savings account payment is
22requested. Additionally, under current law each education
23savings account payment is equal to the regular program state
24cost per pupil for the same school budget year. The division
25provides that, if the parent or guardian of a pupil submitted
26such an application on or after December 1, but on or before
27December 20, preceding the semester for which the education
28savings account payment is requested, the education savings
29account payment for such pupil is equal to 50 percent of the
30regular program state cost per pupil for the same school budget
31year. The division makes conforming changes.
32DIVISION VIII — INDEPENDENT ACCREDITING AGENCIES. Current
33law authorizes a nonpublic school to be accredited by an
34approved independent accrediting agency instead of by the
35state board of education if the nonpublic school is accredited
-20-1by an independent accrediting agency that is on a list of
2approved independent accrediting agencies maintained by the
3state board of education. The division provides that these
4provisions shall not be construed to authorize the state or any
5political subdivision of the state to exercise authority over
6any nonpublic school or construed to require a nonpublic school
7to modify its academic standards for admission or educational
8program. The division also provides that these provisions
9shall not be construed to expand the authority of the state or
10any political subdivision of the state to impose regulations
11upon any nonpublic school that are not necessary to implement
12the state’s educational standards. The division provides that
13rules adopted by the state board of education to implement
14these provisions that impose an undue burden on a nonpublic
15school are invalid. The division requires that a nonpublic
16school shall be given the maximum freedom possible to provide
17for the educational needs of the school’s students, consistent
18with state and federal law.
19DIVISION IX — SCHEDULE OF TEACHER TRAININGS AND LICENSURE
20RENEWAL REQUIREMENTS. The division requires the department
21of education to convene a task force to study the training
22programs in which teachers in this state are required to
23participate pursuant to state law and the requirements
24associated with renewing a teaching license. The task force
25is required to submit its findings and recommendations to
26the general assembly on or before December 31, 2026. The
27recommendations must include specific recommendations related
28to how to change current law to create a more manageable
29training program schedule and licensure renewal requirement
30schedule for teachers.
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