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House File 2754 - 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
4administered by the Iowa finance authority, the statewide
5voluntary preschool program for four-year-old children,
6education savings accounts, independent accrediting
7agencies, teacher training and licensure, and private
8instruction, and making appropriations, and including
9effective date and 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 FACILITIES REVOLVING LOAN PROGRAM
32 Sec. 8. NEW SECTION. 16.163 Charter school facilities
33revolving loan program fund — credit enhancement agreements.
341. a. A charter school facilities revolving loan program
35fund is created within the authority to assist charter schools
-4-1established pursuant to chapter 256E in acquiring suitable
2school facilities. The moneys in the charter school facilities
3revolving loan program fund are appropriated to the authority
4for use in the development and operation of a charter school
5facilities revolving loan program to assist charter schools in
6purchasing, acquiring, developing, reconstructing, remodeling,
7or replacing school buildings.
8b. Moneys transferred by the authority for deposit
9in the charter school facilities revolving loan program
10fund, moneys appropriated to the charter school facilities
11revolving loan program, and any other moneys available to
12and obtained or accepted by the authority for placement in
13the charter school facilities revolving loan program fund
14shall be deposited in the fund. Additionally, payment of
15interest, recaptures of awards, and other repayments to the
16charter school facilities revolving loan program fund shall
17be deposited in the fund. Notwithstanding section 12C.7,
18subsection 2, interest or earnings on moneys in the charter
19school facilities revolving loan program fund shall be credited
20to the fund. Notwithstanding section 8.33, moneys that remain
21unencumbered or unobligated at the end of the fiscal year shall
22not revert but shall remain available for the same purpose in
23the succeeding fiscal year.
24c. The authority shall annually allocate moneys available in
25the charter school facilities revolving loan program fund to
26assist charter schools in purchasing, acquiring, developing,
27reconstructing, remodeling, or replacing school buildings.
282. In addition to the charter school facilities revolving
29loan program authorized pursuant to subsection 1, the authority
30is authorized to make or enter into a liquidity or credit
31enhancement agreement with a charter school established
32pursuant to chapter 256E to assist the charter school in
33purchasing, acquiring, developing, reconstructing, remodeling,
34or replacing school buildings.
35 Sec. 9. CODE EDITOR DIRECTIVE. The Code editor shall
-5-1designate section 16.163, as enacted in this Act, as a
2new section within chapter 16, subchapter X, part 6, and
3may redesignate the preexisting part and correct internal
4references as necessary, including references to part
5headnotes.
6DIVISION VI
7STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD
8CHILDREN
9 Sec. 10. Section 256C.3, subsection 4, Code 2026, is amended
10by adding the following new paragraph:
11 NEW PARAGRAPH. e. (1) A school district may enter into
12a chapter 28E agreement with a community-based provider to
13allow the community-based provider to provide high-quality
14instruction as part of the approved local program.
15(2) Upon the request of a community-based provider, a
16school district shall enter into a chapter 28E agreement with a
17community-based provider to allow the community-based provider
18to provide high-quality instruction as part of the approved
19local program.
20(3) A chapter 28E agreement entered into pursuant to this
21paragraph shall not limit the number of eligible students who
22may receive high-quality instruction from a community-based
23provider as part of the approved local program.
24 Sec. 11. NEW SECTION. 256C.7 Limitation of authority.
251. This chapter shall not be construed to authorize the
26state or any political subdivision of the state to exercise
27authority over any community-based provider or construed to
28require a community-based provider to modify its academic
29standards for admission or educational program in order to
30receive payments from a school district pursuant to section
31256C.4, subsection 1.
322. This chapter shall not be construed to expand the
33authority of the state or any political subdivision of the
34state to impose regulations upon any community-based provider
35that are not necessary to implement this chapter.
-6- 13. A community-based provider that receives payments from a
2school district pursuant to section 256C.4, subsection 1, is
3not an agent of this state or of a political subdivision of
4this state.
54. Rules adopted by the department of education to implement
6this chapter that impose an undue burden on a community-based
7provider are invalid.
85. A community-based provider that receives payments from
9a school district pursuant to section 256C.4, subsection 1,
10shall be given the maximum freedom possible to provide for the
11educational needs of the community-based provider’s students,
12consistent with state and federal law.
13DIVISION VII
14EDUCATION SAVINGS ACCOUNTS
15 Sec. 12. Section 257.11B, subsections 3 and 4, Code 2026,
16are amended to read as follows:
173. a. (1) On or after January 1, but on or before June
1830, preceding the school year for which the education savings
19account payment is requested, the parent or guardian of an
20eligible pupil may request an education savings account payment
21by submitting an application to the department of education.
22(2) On or after December 1, but on or before December 20,
23preceding the semester for which the education savings account
24payment is requested, the parent or guardian of an eligible
25pupil may request an education savings account payment by
26submitting an application to the department of education.
27b. Within thirty days following submission of an
28application, the department of education or third-party entity
29shall notify the parent or guardian of each pupil approved for
30the following school year or semester and specify the amount of
31the education savings account payment for the pupil, if known
32at the time of the notice. As soon as practical following the
33processing of all applications, the department of education or
34third-party entity shall determine the number of pupils in each
35school district approved for the school budget year and provide
-7-1such information to the department of management.
2c. Education savings account payments shall only be
3approved for one school year or one semester, as applicable,
4 and applications must be submitted annually for payments in
5subsequent school years.
64. Each education savings account payment shall be equal to
7the regular program state cost per pupil for the same school
8budget year; provided, however, that an education savings
9account payment shall be equal to fifty percent of the regular
10program state cost per pupil for the same school budget year if
11the pupil’s parent or guardian submitted an application under
12subsection 3, paragraph “a”, subparagraph (2).
13 Sec. 13. Section 257.11B, subsection 6, paragraph a, Code
142026, is amended to read as follows:
15a. For each pupil approved for an education savings account
16payment, the department of education or third-party entity
17shall establish an individual account for that pupil in the
18education savings account fund. The If the pupil’s parent
19or guardian submitted an application under subsection 3,
20paragraph “a”, subparagraph (1), the amount of the pupil’s
21education savings account payment shall be deposited into
22the pupil’s individual account on July 15 or thirty days
23following submission of the application, whichever is later,
24and such amount shall be immediately available for the payment
25of qualified educational expenses incurred by the parent or
26guardian for the pupil during that fiscal year using a payment
27method authorized under subsection 5. If the pupil’s parent or
28guardian submitted an application under subsection 3, paragraph
29“a”, subparagraph (2), the amount of the pupil’s education
30savings account payment shall be deposited into the pupil’s
31individual account within thirty days following submission of
32the application, and such amount shall be immediately available
33for the payment of qualified educational expenses incurred by
34the parent or guardian for the pupil during that fiscal year
35using a payment method authorized under subsection 5.
-8-1DIVISION VIII
2INDEPENDENT ACCREDITING AGENCIES
3 Sec. 14. Section 256.11, subsection 16, Code 2026, is
4amended by adding the following new paragraph:
5 NEW PARAGRAPH. d. (1) This subsection shall not be
6construed to authorize the state or any political subdivision
7of the state to exercise authority over any nonpublic school or
8construed to require a nonpublic school to modify its academic
9standards for admission or educational program.
10(2) This section shall not be construed to expand the
11authority of the state or any political subdivision of the
12state to impose regulations upon any nonpublic school that are
13not necessary to implement this section.
14(3) Rules adopted by the state board of education to
15implement this section that impose an undue burden on a
16nonpublic school are invalid.
17(4) A nonpublic school shall be given the maximum freedom
18possible to provide for the educational needs of the school’s
19students, consistent with state and federal law.
20DIVISION IX
21SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL
22REQUIREMENTS
23 Sec. 15. DEPARTMENT OF EDUCATION — SCHEDULE OF REQUIRED
24TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS.
251. The department of education shall convene and provide
26administrative support to a task force that shall study the
27training programs in which teachers in this state are required
28to participate pursuant to state law and the requirements
29associated with renewing a teaching license.
302. Any expense incurred by a member of the task force
31shall be the responsibility of the individual member or the
32respective entity represented by the member.
333. The task force shall submit its findings and
34recommendations to the general assembly on or before
35December 31, 2026. The recommendations must include specific
-9-1recommendations related to how to change current law to create
2a more manageable training program schedule and licensure
3renewal requirement schedule for teachers.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to education by modifying provisions
8related to charter schools, the Iowa public employees’
9retirement system, financing programs for charter schools
10administered by the Iowa finance authority, the statewide
11voluntary preschool program, education savings accounts,
12independent accrediting agencies, teacher training and
13licensure, and makes appropriations.
14DIVISION I — CHARTER SCHOOL FUNDING. Currently, each
15student enrolled in a charter school under Code chapter 256E
16shall be counted, for state school foundation purposes, in the
17student’s district of residence. The department of education
18is then required to pay to the charter school in which the
19student is enrolled an amount equal to the sum of the regular
20program state cost per pupil for the budget year plus other
21additional costs specified in Code section 256E.8(2)(a). This
22division adds the teacher salary supplement state cost per
23pupil to the amount required to be paid to the charter school.
24This provision applies to school budget years beginning on or
25after July 1, 2026.
26DIVISION II — IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM.
27 This division provides that persons employed by charter schools
28that satisfy all applicable requirements under federal law
29for participation in the retirement systemare employees for
30purposes of the provisions of the Iowa public employees’
31retirement system (IPERS). Additionally, the division provides
32that charter schools that satisfy all applicable requirements
33under federal law for participation in the retirement system
34are employers for purposes of the provisions of IPERS.
35The bill provides that in the event of a charter school
-10-1closure, the assets of the charter school shall be, after
2payroll obligations but prior to paying creditors, used to
3satisfy any liabilities due and owing to IPERS.
4DIVISION III — EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC
5CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS. This
6division requires the board of directors of a school district
7to allow a student who resides within the district, and
8who is enrolled in a charter school, to participate in any
9extracurricular interscholastic athletic contest or competition
10that is provided by the school district pursuant to the terms
11of an agreement between the board of directors of the school
12district and the governing board of the charter school if the
13extracurricular interscholastic athletic contest or competition
14has not been provided by the charter school during the two
15immediately preceding school years and if the charter school
16has not entered into an agreement under Code section 280.13A
17(sharing interscholastic activities) with another school
18district, nonpublic school, or charter school that provides
19for the eligibility of students enrolled in the charter school
20to participate in the extracurricular interscholastic athletic
21contest or competition that is being provided by that school.
22The division requires the board of directors of a school
23district to allow a student who resides within a contiguous
24school district, and who is enrolled in a charter school, to
25participate in any extracurricular interscholastic athletic
26contest or competition that is provided by the school district
27pursuant to the terms of an agreement between the board of
28directors of the school district and the governing board of
29the charter school if the extracurricular interscholastic
30athletic contest or competition has not been provided by the
31charter school or by the student’s school district of residence
32during the two immediately preceding school years and if
33the charter school has not entered into an agreement under
34Code section 280.13A with another school district, nonpublic
35school, or charter school that provides for the eligibility of
-11-1students enrolled in the charter school to participate in the
2extracurricular interscholastic athletic contest or competition
3that is being provided by that school.
4The division provides that if the board of directors of
5a school district has established a fee for the cost of a
6student’s participation in an extracurricular interscholastic
7athletic contest or competition, a student who is enrolled in a
8charter school and is participating in a contest or competition
9at a public school pursuant to the division’s provisions, or
10the student’s parent or guardian, shall be responsible for the
11payment of such fee.
12The division requires a student who is enrolled in a charter
13school and is participating in a contest or competition at
14a public school pursuant to the division’s provisions to
15participate under the same conditions as a student who is
16enrolled in the school district, including meeting the school
17district’s student code of conduct requirements.
18The division provides that a student who participates in an
19extracurricular interscholastic athletic contest or competition
20pursuant to the division’s provisions is deemed to satisfy the
21residence requirements for purposes of Code section 256.46
22(rules for participation in extracurricular activities by
23certain children).
24DIVISION IV — LOCAL EDUCATION AGENCY STATUS. This division
25provides that the governing board of a charter school that is
26approved under Code section 256E.5 (founding group-state board
27model) is a local education agency for the purpose of receiving
28federal funds for all attendance centers that are under the
29jurisdiction of the governing board.
30DIVISION V — CHARTER SCHOOL FACILITIES REVOLVING LOAN
31PROGRAM. This division establishes a charter school facilities
32revolving loan program fund within the Iowa finance authority
33(IFA) to assist charter schools in acquiring suitable school
34facilities. The moneys in the fund are appropriated to the IFA
35for use in the development and operation of a charter school
-12-1facilities revolving loan program in purchasing, acquiring,
2developing, reconstructing, remodeling, or replacing school
3buildings. The division also allows the IFA to make or enter
4into a liquidity or credit enhancement agreement with a charter
5school in purchasing, acquiring, developing, reconstructing,
6remodeling, or replacing school buildings.
7DIVISION VI — STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR
8FOUR-YEAR-OLD CHILDREN. This division authorizes school
9districts to enter into a Code chapter 28E agreement with a
10community-based provider allowing the community-based provider
11to provide instruction as part of the approved local program,
12and the division requires school districts to enter into such
13an agreement upon the request of a community-based provider.
14Additionally, the division prohibits such Code chapter 28E
15agreements from limiting the number of eligible students who
16may receive instruction from a community-based provider as part
17of the approved local program.
18The division prohibits Code chapter 256C (statewide
19voluntary preschool program for four-year-old children)
20from being construed to authorize the state or any political
21subdivision of the state to exercise authority over
22any community-based provider or construed to require a
23community-based provider to modify its academic standards
24for admission or educational program in order to receive
25payments from a school district under the statewide voluntary
26preschool program (SWVPP). The division also prohibits Code
27chapter 256C from being construed to expand the authority of
28the state or any political subdivision of the state to impose
29regulations upon any community-based provider that are not
30necessary to implement this section. The division provides
31that a community-based provider that receives payments from a
32school district under the SWVPP is not an agent of this state
33or of a political subdivision of this state. Rules adopted by
34the department of education to implement the SWVPP that impose
35an undue burden on a community-based provider are invalid. The
-13-1division requires that a community-based provider that receives
2payments from a school district under the SWVPP be given the
3maximum freedom possible to provide for the educational needs
4of the community-based provider’s students, consistent with
5state and federal law.
6DIVISION VII — EDUCATION SAVINGS ACCOUNTS. The education
7savings account program is a program that provides funds to
8pupils who attend nonpublic schools to pay for qualified
9educational expenses, including but not limited to tuition,
10tutoring or cognitive skill training fees, educational therapy
11costs, software expenses, and expenses related to course
12materials. Under current law, the parent or guardian of a
13pupil is required to submit an application for payment under
14the education savings account program to the department of
15education on or after January 1, but on or before June 30,
16preceding the school year for which the education savings
17account payment is requested. This division allows the parent
18or guardian of a pupil to submit such an application on or
19after December 1, but on or before December 20, preceding the
20semester for which the education savings account payment is
21requested. Additionally, under current law each education
22savings account payment is equal to the regular program state
23cost per pupil for the same school budget year. The division
24provides that, if the parent or guardian of a pupil submitted
25such an application on or after December 1, but on or before
26December 20, preceding the semester for which the education
27savings account payment is requested, the education savings
28account payment for such pupil is equal to 50 percent of the
29regular program state cost per pupil for the same school budget
30year. The division makes conforming changes.
31DIVISION VIII — INDEPENDENT ACCREDITING AGENCIES. Current
32law authorizes a nonpublic school to be accredited by an
33approved independent accrediting agency instead of by the
34state board of education if the nonpublic school is accredited
35by an independent accrediting agency that is on a list of
-14-1approved independent accrediting agencies maintained by the
2state board of education. This division provides that these
3provisions shall not be construed to authorize the state or any
4political subdivision of the state to exercise authority over
5any nonpublic school or construed to require a nonpublic school
6to modify its academic standards for admission or educational
7program. The division also provides that these provisions
8shall not be construed to expand the authority of the state or
9any political subdivision of the state to impose regulations
10upon any nonpublic school that are not necessary to implement
11the state’s educational standards. The division provides that
12rules adopted by the state board of education to implement
13these provisions that impose an undue burden on a nonpublic
14school are invalid. The division requires that a nonpublic
15school shall be given the maximum freedom possible to provide
16for the educational needs of the school’s students, consistent
17with state and federal law.
18DIVISION IX — SCHEDULE OF TEACHER TRAININGS AND LICENSURE
19RENEWAL REQUIREMENTS. This division requires the department
20of education to convene a task force to study the training
21programs in which teachers in this state are required to
22participate pursuant to state law and the requirements
23associated with renewing a teaching license. The task force
24is required to submit its findings and recommendations to
25the general assembly on or before December 31, 2026. The
26recommendations must include specific recommendations related
27to how to change current law to create a more manageable
28training program schedule and licensure renewal requirement
29schedule for teachers.
-15-jda/jh
2related to charter schools, the Iowa public employees’
3retirement system, financing programs for charter schools
4administered by the Iowa finance authority, the statewide
5voluntary preschool program for four-year-old children,
6education savings accounts, independent accrediting
7agencies, teacher training and licensure, and private
8instruction, and making appropriations, and including
9effective date and 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 FACILITIES REVOLVING LOAN PROGRAM
32 Sec. 8. NEW SECTION. 16.163 Charter school facilities
33revolving loan program fund — credit enhancement agreements.
341. a. A charter school facilities revolving loan program
35fund is created within the authority to assist charter schools
-4-1established pursuant to chapter 256E in acquiring suitable
2school facilities. The moneys in the charter school facilities
3revolving loan program fund are appropriated to the authority
4for use in the development and operation of a charter school
5facilities revolving loan program to assist charter schools in
6purchasing, acquiring, developing, reconstructing, remodeling,
7or replacing school buildings.
8b. Moneys transferred by the authority for deposit
9in the charter school facilities revolving loan program
10fund, moneys appropriated to the charter school facilities
11revolving loan program, and any other moneys available to
12and obtained or accepted by the authority for placement in
13the charter school facilities revolving loan program fund
14shall be deposited in the fund. Additionally, payment of
15interest, recaptures of awards, and other repayments to the
16charter school facilities revolving loan program fund shall
17be deposited in the fund. Notwithstanding section 12C.7,
18subsection 2, interest or earnings on moneys in the charter
19school facilities revolving loan program fund shall be credited
20to the fund. Notwithstanding section 8.33, moneys that remain
21unencumbered or unobligated at the end of the fiscal year shall
22not revert but shall remain available for the same purpose in
23the succeeding fiscal year.
24c. The authority shall annually allocate moneys available in
25the charter school facilities revolving loan program fund to
26assist charter schools in purchasing, acquiring, developing,
27reconstructing, remodeling, or replacing school buildings.
282. In addition to the charter school facilities revolving
29loan program authorized pursuant to subsection 1, the authority
30is authorized to make or enter into a liquidity or credit
31enhancement agreement with a charter school established
32pursuant to chapter 256E to assist the charter school in
33purchasing, acquiring, developing, reconstructing, remodeling,
34or replacing school buildings.
35 Sec. 9. CODE EDITOR DIRECTIVE. The Code editor shall
-5-1designate section 16.163, as enacted in this Act, as a
2new section within chapter 16, subchapter X, part 6, and
3may redesignate the preexisting part and correct internal
4references as necessary, including references to part
5headnotes.
6DIVISION VI
7STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD
8CHILDREN
9 Sec. 10. Section 256C.3, subsection 4, Code 2026, is amended
10by adding the following new paragraph:
11 NEW PARAGRAPH. e. (1) A school district may enter into
12a chapter 28E agreement with a community-based provider to
13allow the community-based provider to provide high-quality
14instruction as part of the approved local program.
15(2) Upon the request of a community-based provider, a
16school district shall enter into a chapter 28E agreement with a
17community-based provider to allow the community-based provider
18to provide high-quality instruction as part of the approved
19local program.
20(3) A chapter 28E agreement entered into pursuant to this
21paragraph shall not limit the number of eligible students who
22may receive high-quality instruction from a community-based
23provider as part of the approved local program.
24 Sec. 11. NEW SECTION. 256C.7 Limitation of authority.
251. This chapter shall not be construed to authorize the
26state or any political subdivision of the state to exercise
27authority over any community-based provider or construed to
28require a community-based provider to modify its academic
29standards for admission or educational program in order to
30receive payments from a school district pursuant to section
31256C.4, subsection 1.
322. This chapter shall not be construed to expand the
33authority of the state or any political subdivision of the
34state to impose regulations upon any community-based provider
35that are not necessary to implement this chapter.
-6- 13. A community-based provider that receives payments from a
2school district pursuant to section 256C.4, subsection 1, is
3not an agent of this state or of a political subdivision of
4this state.
54. Rules adopted by the department of education to implement
6this chapter that impose an undue burden on a community-based
7provider are invalid.
85. A community-based provider that receives payments from
9a school district pursuant to section 256C.4, subsection 1,
10shall be given the maximum freedom possible to provide for the
11educational needs of the community-based provider’s students,
12consistent with state and federal law.
13DIVISION VII
14EDUCATION SAVINGS ACCOUNTS
15 Sec. 12. Section 257.11B, subsections 3 and 4, Code 2026,
16are amended to read as follows:
173. a. (1) On or after January 1, but on or before June
1830, preceding the school year for which the education savings
19account payment is requested, the parent or guardian of an
20eligible pupil may request an education savings account payment
21by submitting an application to the department of education.
22(2) On or after December 1, but on or before December 20,
23preceding the semester for which the education savings account
24payment is requested, the parent or guardian of an eligible
25pupil may request an education savings account payment by
26submitting an application to the department of education.
27b. Within thirty days following submission of an
28application, the department of education or third-party entity
29shall notify the parent or guardian of each pupil approved for
30the following school year or semester and specify the amount of
31the education savings account payment for the pupil, if known
32at the time of the notice. As soon as practical following the
33processing of all applications, the department of education or
34third-party entity shall determine the number of pupils in each
35school district approved for the school budget year and provide
-7-1such information to the department of management.
2c. Education savings account payments shall only be
3approved for one school year or one semester, as applicable,
4 and applications must be submitted annually for payments in
5subsequent school years.
64. Each education savings account payment shall be equal to
7the regular program state cost per pupil for the same school
8budget year; provided, however, that an education savings
9account payment shall be equal to fifty percent of the regular
10program state cost per pupil for the same school budget year if
11the pupil’s parent or guardian submitted an application under
12subsection 3, paragraph “a”, subparagraph (2).
13 Sec. 13. Section 257.11B, subsection 6, paragraph a, Code
142026, is amended to read as follows:
15a. For each pupil approved for an education savings account
16payment, the department of education or third-party entity
17shall establish an individual account for that pupil in the
18education savings account fund. The If the pupil’s parent
19or guardian submitted an application under subsection 3,
20paragraph “a”, subparagraph (1), the amount of the pupil’s
21education savings account payment shall be deposited into
22the pupil’s individual account on July 15 or thirty days
23following submission of the application, whichever is later,
24and such amount shall be immediately available for the payment
25of qualified educational expenses incurred by the parent or
26guardian for the pupil during that fiscal year using a payment
27method authorized under subsection 5. If the pupil’s parent or
28guardian submitted an application under subsection 3, paragraph
29“a”, subparagraph (2), the amount of the pupil’s education
30savings account payment shall be deposited into the pupil’s
31individual account within thirty days following submission of
32the application, and such amount shall be immediately available
33for the payment of qualified educational expenses incurred by
34the parent or guardian for the pupil during that fiscal year
35using a payment method authorized under subsection 5.
-8-1DIVISION VIII
2INDEPENDENT ACCREDITING AGENCIES
3 Sec. 14. Section 256.11, subsection 16, Code 2026, is
4amended by adding the following new paragraph:
5 NEW PARAGRAPH. d. (1) This subsection shall not be
6construed to authorize the state or any political subdivision
7of the state to exercise authority over any nonpublic school or
8construed to require a nonpublic school to modify its academic
9standards for admission or educational program.
10(2) This section shall not be construed to expand the
11authority of the state or any political subdivision of the
12state to impose regulations upon any nonpublic school that are
13not necessary to implement this section.
14(3) Rules adopted by the state board of education to
15implement this section that impose an undue burden on a
16nonpublic school are invalid.
17(4) A nonpublic school shall be given the maximum freedom
18possible to provide for the educational needs of the school’s
19students, consistent with state and federal law.
20DIVISION IX
21SCHEDULE OF TEACHER TRAININGS AND LICENSURE RENEWAL
22REQUIREMENTS
23 Sec. 15. DEPARTMENT OF EDUCATION — SCHEDULE OF REQUIRED
24TEACHER TRAINING AND LICENSURE RENEWAL REQUIREMENTS.
251. The department of education shall convene and provide
26administrative support to a task force that shall study the
27training programs in which teachers in this state are required
28to participate pursuant to state law and the requirements
29associated with renewing a teaching license.
302. Any expense incurred by a member of the task force
31shall be the responsibility of the individual member or the
32respective entity represented by the member.
333. The task force shall submit its findings and
34recommendations to the general assembly on or before
35December 31, 2026. The recommendations must include specific
-9-1recommendations related to how to change current law to create
2a more manageable training program schedule and licensure
3renewal requirement schedule for teachers.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to education by modifying provisions
8related to charter schools, the Iowa public employees’
9retirement system, financing programs for charter schools
10administered by the Iowa finance authority, the statewide
11voluntary preschool program, education savings accounts,
12independent accrediting agencies, teacher training and
13licensure, and makes appropriations.
14DIVISION I — CHARTER SCHOOL FUNDING. Currently, each
15student enrolled in a charter school under Code chapter 256E
16shall be counted, for state school foundation purposes, in the
17student’s district of residence. The department of education
18is then required to pay to the charter school in which the
19student is enrolled an amount equal to the sum of the regular
20program state cost per pupil for the budget year plus other
21additional costs specified in Code section 256E.8(2)(a). This
22division adds the teacher salary supplement state cost per
23pupil to the amount required to be paid to the charter school.
24This provision applies to school budget years beginning on or
25after July 1, 2026.
26DIVISION II — IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM.
27 This division provides that persons employed by charter schools
28that satisfy all applicable requirements under federal law
29for participation in the retirement systemare employees for
30purposes of the provisions of the Iowa public employees’
31retirement system (IPERS). Additionally, the division provides
32that charter schools that satisfy all applicable requirements
33under federal law for participation in the retirement system
34are employers for purposes of the provisions of IPERS.
35The bill provides that in the event of a charter school
-10-1closure, the assets of the charter school shall be, after
2payroll obligations but prior to paying creditors, used to
3satisfy any liabilities due and owing to IPERS.
4DIVISION III — EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC
5CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS. This
6division requires the board of directors of a school district
7to allow a student who resides within the district, and
8who is enrolled in a charter school, to participate in any
9extracurricular interscholastic athletic contest or competition
10that is provided by the school district pursuant to the terms
11of an agreement between the board of directors of the school
12district and the governing board of the charter school if the
13extracurricular interscholastic athletic contest or competition
14has not been provided by the charter school during the two
15immediately preceding school years and if the charter school
16has not entered into an agreement under Code section 280.13A
17(sharing interscholastic activities) with another school
18district, nonpublic school, or charter school that provides
19for the eligibility of students enrolled in the charter school
20to participate in the extracurricular interscholastic athletic
21contest or competition that is being provided by that school.
22The division requires the board of directors of a school
23district to allow a student who resides within a contiguous
24school district, and who is enrolled in a charter school, to
25participate in any extracurricular interscholastic athletic
26contest or competition that is provided by the school district
27pursuant to the terms of an agreement between the board of
28directors of the school district and the governing board of
29the charter school if the extracurricular interscholastic
30athletic contest or competition has not been provided by the
31charter school or by the student’s school district of residence
32during the two immediately preceding school years and if
33the charter school has not entered into an agreement under
34Code section 280.13A with another school district, nonpublic
35school, or charter school that provides for the eligibility of
-11-1students enrolled in the charter school to participate in the
2extracurricular interscholastic athletic contest or competition
3that is being provided by that school.
4The division provides that if the board of directors of
5a school district has established a fee for the cost of a
6student’s participation in an extracurricular interscholastic
7athletic contest or competition, a student who is enrolled in a
8charter school and is participating in a contest or competition
9at a public school pursuant to the division’s provisions, or
10the student’s parent or guardian, shall be responsible for the
11payment of such fee.
12The division requires a student who is enrolled in a charter
13school and is participating in a contest or competition at
14a public school pursuant to the division’s provisions to
15participate under the same conditions as a student who is
16enrolled in the school district, including meeting the school
17district’s student code of conduct requirements.
18The division provides that a student who participates in an
19extracurricular interscholastic athletic contest or competition
20pursuant to the division’s provisions is deemed to satisfy the
21residence requirements for purposes of Code section 256.46
22(rules for participation in extracurricular activities by
23certain children).
24DIVISION IV — LOCAL EDUCATION AGENCY STATUS. This division
25provides that the governing board of a charter school that is
26approved under Code section 256E.5 (founding group-state board
27model) is a local education agency for the purpose of receiving
28federal funds for all attendance centers that are under the
29jurisdiction of the governing board.
30DIVISION V — CHARTER SCHOOL FACILITIES REVOLVING LOAN
31PROGRAM. This division establishes a charter school facilities
32revolving loan program fund within the Iowa finance authority
33(IFA) to assist charter schools in acquiring suitable school
34facilities. The moneys in the fund are appropriated to the IFA
35for use in the development and operation of a charter school
-12-1facilities revolving loan program in purchasing, acquiring,
2developing, reconstructing, remodeling, or replacing school
3buildings. The division also allows the IFA to make or enter
4into a liquidity or credit enhancement agreement with a charter
5school in purchasing, acquiring, developing, reconstructing,
6remodeling, or replacing school buildings.
7DIVISION VI — STATEWIDE VOLUNTARY PRESCHOOL PROGRAM FOR
8FOUR-YEAR-OLD CHILDREN. This division authorizes school
9districts to enter into a Code chapter 28E agreement with a
10community-based provider allowing the community-based provider
11to provide instruction as part of the approved local program,
12and the division requires school districts to enter into such
13an agreement upon the request of a community-based provider.
14Additionally, the division prohibits such Code chapter 28E
15agreements from limiting the number of eligible students who
16may receive instruction from a community-based provider as part
17of the approved local program.
18The division prohibits Code chapter 256C (statewide
19voluntary preschool program for four-year-old children)
20from being construed to authorize the state or any political
21subdivision of the state to exercise authority over
22any community-based provider or construed to require a
23community-based provider to modify its academic standards
24for admission or educational program in order to receive
25payments from a school district under the statewide voluntary
26preschool program (SWVPP). The division also prohibits Code
27chapter 256C from being construed to expand the authority of
28the state or any political subdivision of the state to impose
29regulations upon any community-based provider that are not
30necessary to implement this section. The division provides
31that a community-based provider that receives payments from a
32school district under the SWVPP is not an agent of this state
33or of a political subdivision of this state. Rules adopted by
34the department of education to implement the SWVPP that impose
35an undue burden on a community-based provider are invalid. The
-13-1division requires that a community-based provider that receives
2payments from a school district under the SWVPP be given the
3maximum freedom possible to provide for the educational needs
4of the community-based provider’s students, consistent with
5state and federal law.
6DIVISION VII — EDUCATION SAVINGS ACCOUNTS. The education
7savings account program is a program that provides funds to
8pupils who attend nonpublic schools to pay for qualified
9educational expenses, including but not limited to tuition,
10tutoring or cognitive skill training fees, educational therapy
11costs, software expenses, and expenses related to course
12materials. Under current law, the parent or guardian of a
13pupil is required to submit an application for payment under
14the education savings account program to the department of
15education on or after January 1, but on or before June 30,
16preceding the school year for which the education savings
17account payment is requested. This division allows the parent
18or guardian of a pupil to submit such an application on or
19after December 1, but on or before December 20, preceding the
20semester for which the education savings account payment is
21requested. Additionally, under current law each education
22savings account payment is equal to the regular program state
23cost per pupil for the same school budget year. The division
24provides that, if the parent or guardian of a pupil submitted
25such an application on or after December 1, but on or before
26December 20, preceding the semester for which the education
27savings account payment is requested, the education savings
28account payment for such pupil is equal to 50 percent of the
29regular program state cost per pupil for the same school budget
30year. The division makes conforming changes.
31DIVISION VIII — INDEPENDENT ACCREDITING AGENCIES. Current
32law authorizes a nonpublic school to be accredited by an
33approved independent accrediting agency instead of by the
34state board of education if the nonpublic school is accredited
35by an independent accrediting agency that is on a list of
-14-1approved independent accrediting agencies maintained by the
2state board of education. This division provides that these
3provisions shall not be construed to authorize the state or any
4political subdivision of the state to exercise authority over
5any nonpublic school or construed to require a nonpublic school
6to modify its academic standards for admission or educational
7program. The division also provides that these provisions
8shall not be construed to expand the authority of the state or
9any political subdivision of the state to impose regulations
10upon any nonpublic school that are not necessary to implement
11the state’s educational standards. The division provides that
12rules adopted by the state board of education to implement
13these provisions that impose an undue burden on a nonpublic
14school are invalid. The division requires that a nonpublic
15school shall be given the maximum freedom possible to provide
16for the educational needs of the school’s students, consistent
17with state and federal law.
18DIVISION IX — SCHEDULE OF TEACHER TRAININGS AND LICENSURE
19RENEWAL REQUIREMENTS. This division requires the department
20of education to convene a task force to study the training
21programs in which teachers in this state are required to
22participate pursuant to state law and the requirements
23associated with renewing a teaching license. The task force
24is required to submit its findings and recommendations to
25the general assembly on or before December 31, 2026. The
26recommendations must include specific recommendations related
27to how to change current law to create a more manageable
28training program schedule and licensure renewal requirement
29schedule for teachers.
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