Senate File 28 - IntroducedA Bill ForAn Act 1relating to education by modifying the duties and
2authority of certain state and local governmental entities,
3establishing an education savings grant program and fund,
4making appropriations, providing penalties, and including
5effective date and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2REPEAL OF DEPARTMENT OF EDUCATION AND
3STATE BOARD OF EDUCATION
4   Section 1.  NEW SECTION.  256B.16  Transfer of authority and
5duties.
   61.  Beginning July 1, 2020, the authority and duties of the
7department of education, the division of special education
8created under section 256B.1, the state board of education, and
9the director of the department of education under this chapter
10shall to the extent feasible be transferred to the appropriate
11area education agency where such special education services
12are being provided. Accordingly, beginning July 1, 2020, all
13references to the department of education or the division of
14special education under this chapter and references to the
15department of education or the division of special education
16under other provisions of law relating to this chapter shall
17mean the applicable area education agency and all references to
18the state board of education or the director of the department
19of education under this chapter or other provisions of law
20relating to this chapter shall mean the board of directors of
21the area education agency and the administrator of the area
22education agency respectively.
   232.  Any moneys remaining in any account or fund under the
24control of the department of education at the conclusion
25of the fiscal year beginning July 1, 2019, relative to
26the provisions of this chapter shall be transferred to the
27control of the department of human services for such purposes.
28Notwithstanding section 8.33, the moneys transferred in
29accordance with this subsection shall not revert to the account
30or fund from which appropriated or transferred.
   313.  Any contract entered into by the department of education
32relating to the provisions of this chapter in effect at the
33conclusion of the fiscal year beginning July 1, 2019, shall
34continue in full force and effect pending transfer of such
35contracts to the area education agencies.
-1-
   14.  Any rule, regulation, form, order, or directive
2promulgated by the department of education relative to the
3provisions of this chapter in existence at the conclusion of
4the fiscal year beginning July 1, 2019, shall continue in full
5force and effect.
   65.  In regard to updating references and format in the Iowa
7administrative code in order to correspond to the transferring
8of duties of this chapter, the administrative rules coordinator
9and the administrative rules review committee, in consultation
10with the administrative code editor, shall jointly develop a
11schedule for the necessary updating of the Iowa administrative
12code.
13   Sec. 2.  Section 256C.1, Code 2019, is amended to read as
14follows:
   15256C.1  Definitions.
   16As used in this chapter:
   171.  “Approved local program” means a school district’s
18program for four-year-old children approved by the department
19of education to provide high quality preschool instruction
.
   202.  “Department” means the department of education.
   213.  “Director” means the director of the department of
22education.
   234.    2.  “Preschool program” means the statewide preschool
24program for four-year-old children created in accordance with
25this chapter.
   265.    3.  “School district approved to participate in the
27preschool program”
means a school district that meets the
28school district requirements under section 256C.3 and has been
29approved by the department to participate in the preschool
30program
.
   316.  “State board” means the state board of education.
32   Sec. 3.  Section 256C.2, subsection 2, Code 2019, is amended
33by striking the subsection.
34   Sec. 4.  Section 256C.3, subsection 2, paragraph a,
35subparagraph (3), Code 2019, is amended to read as follows:
-2-   1(3)  The individual possesses a bachelor’s or graduate
2degree from an accredited college or university with a major
3in early childhood education or other appropriate major
4identified in rule by the department as determined by the
5school district’s board of directors
.
6   Sec. 5.  Section 256C.3, subsection 3, unnumbered paragraph
71, Code 2019, is amended to read as follows:
   8The state board shall adopt rules to further define the
9following preschool program requirements which shall be used to
10determine whether or not a
 Each local program implemented by
11a school district approved to implement the preschool program
12qualifies as an approved local program shall address or conform
13with all of the following
:
14   Sec. 6.  Section 256C.3, subsection 3, paragraph e, Code
152019, is amended to read as follows:
   16e.  Collaboration with participating families, early care
17providers, and community partners including but not limited to
18early childhood Iowa area boards, head start programs, shared
19visions and other programs provided under the auspices of the
20child development coordinating council
, licensed child care
21centers, registered child development homes, area education
22agencies, child care resource and referral services provided
23under section 237A.26, early childhood special education
24programs, services funded by Tit.I of the federal Elementary
25and Secondary Education Act of 1965, and family support
26programs.
27   Sec. 7.  Section 256C.3, subsection 4, Code 2019, is amended
28by striking the subsection and inserting in lieu thereof the
29following:
   304.  School district requirements.
   31a.  Subject to implementation of chapter 28E agreements
32between a school district and community-based providers of
33services to four-year-old children, a four-year-old child who
34is enrolled in a child care center or child development home
35licensed or registered under chapter 237A, or in an existing
-3-1public or private preschool program, shall be eligible for
2services provided by the school district’s local preschool
3program.
   4b.  Professional development for school district preschool
5teachers shall be addressed in the school district’s
6professional development plan implemented in accordance with
7section 284.6.
8   Sec. 8.  Section 256C.3, subsection 5, Code 2019, is amended
9by striking the subsection.
10   Sec. 9.  Section 256C.4, subsection 1, paragraph d, Code
112019, is amended to read as follows:
   12d.  Preschool foundation aid funding shall not be commingled
13with the other state aid payments made under section 257.16
14to a school district and shall be accounted for by the local
15school district separately from the other state aid payments.
16Preschool foundation aid payments made to school districts
17are miscellaneous income for purposes of chapter 257. A
18school district shall maintain a separate listing within its
19budget for preschool foundation aid payments received and
20expenditures made. A school district shall certify to the
21department of education that preschool
 Preschool foundation aid
22funding received by the school district was shall be used to
23supplement, not supplant, moneys otherwise received and used by
24the school district for preschool programming.
25   Sec. 10.  Section 256C.4, subsection 2, paragraph b, Code
262019, is amended to read as follows:
   27b.  The enrollment count of eligible students shall not
28include a child who is included in the enrollment count
29determined under section 257.6 or a child who is served by
30a program already receiving state or federal funds for the
31purpose of the provision of four-year-old preschool programming
32while the child is being served by the program. Such preschool
33programming includes but is not limited to child development
34assistance programs provided under chapter 256A,
special
35education programs provided under section 256B.9, school ready
-4-1children grant programs and other programs provided under
2chapter 256I, and federal head start programs and the services
3funded by Tit.I of the federal Elementary and Secondary
4Education Act of 1965.
5   Sec. 11.  Section 256C.5, subsection 2, Code 2019, is amended
6to read as follows:
   72.  Preschool foundation aid district amount.
   8a.  For the initial school year for which a school district
9approved to participate in the preschool program receives that
10approval and
implements the preschool program, the funding for
11the preschool foundation aid payable to that school district
12shall be paid from the appropriation made for that school year
13in section 256C.6, Code 2011, or in another appropriation
14made for purposes of this chapter. For that school year, the
15preschool foundation aid payable to the school district is
16the product of the regular program state cost per pupil for
17the school year multiplied by sixty percent of the school
18district’s eligible student enrollment on the date in the
19school year determined by rule.
   20b.  For budget years subsequent to the initial school year
21for which a school district approved to participate in the
22preschool program receives that initial approval and implements
23the preschool program, the funding for the preschool foundation
24aid payable to that school district shall be paid from the
25appropriation made in section 257.16. Continuation of a
26school district’s participation in the preschool program for
27a second or subsequent budget year is subject to the approval
28of the department based upon the school district’s compliance
29with accountability provisions and the department’s on-site
30review of the school district’s implementation of the preschool
31program.

32   Sec. 12.  Section 256C.5, subsection 4, Code 2019, is amended
33by striking the subsection.
34   Sec. 13.  NEW SECTION.  256F.12  Transfer of authority and
35duties.
-5-
   11.  Beginning July 1, 2020, the authority and duties of the
2department of education, the state board, and the director of
3the department of education under this chapter, to the extent
4feasible, shall be transferred to the board of directors of
5the community college serving the merged area in which the
6charter school or innovation zone school, or such proposed
7school, is located. Accordingly, beginning July 1, 2020, all
8references to the department of education, the state board of
9education, and the director of the department of education
10under this chapter or other provisions of law relating to this
11chapter shall mean the board of directors of the community
12college serving the merged area in which the charter school or
13innovation zone school, or such proposed school, is located.
   142.  Any contract entered into by the department of education
15relating to the provisions of this chapter in effect at the
16conclusion of the fiscal year beginning July 1, 2019, shall
17continue in full force and effect pending transfer of such
18contracts to the appropriate community college board of
19directors.
   203.  Any rule, regulation, form, order, or directive
21promulgated by the department of education relative to the
22provisions of this chapter in existence at the conclusion of
23the fiscal year beginning July 1, 2019, shall continue in full
24force and effect.
25   Sec. 14.  NEW SECTION.  256H.4  Transfer of authority and
26duties.
   271.  Beginning July 1, 2020, the authority and duties of the
28department of education and the director of the department
29of education under this chapter shall be transferred to the
30adjutant general of the state. Accordingly, beginning July 1,
312020, all references to the department of education and the
32director of the department of education under this chapter or
33other provisions of law relating to this chapter shall mean
34adjutant general of the state.
   352.  Any contract entered into by the department of education
-6-1relating to the provisions of this chapter in effect at the
2conclusion of the fiscal year beginning July 1, 2019, shall
3continue in full force and effect pending transfer of such
4contracts to the adjutant general of the state.
   53.  Any rule, regulation, form, order, or directive
6promulgated by the department of education relative to the
7provisions of this chapter in existence upon conclusion of the
8fiscal year beginning July 1, 2019, shall continue in full
9force and effect.
10   Sec. 15.  NEW SECTION.  256I.14  Transfer of authority and
11duties.
   121.  Beginning July 1, 2020, the authority and duties of the
13department of education and the director of the department
14of education under this chapter shall be transferred to the
15department of management and the director of the department
16of management. Accordingly, beginning July 1, 2020, all
17references to the department of education or the director of
18the department of education under this chapter or under other
19provisions of law relating to this chapter shall mean the
20department of management and the director of the department of
21management.
   222.  Any moneys remaining in any account or fund under the
23control of the department of education at the conclusion of the
24fiscal year beginning July 1, 2019, relative to the provisions
25of this chapter shall be transferred to the control of the
26department of management for such purposes. Notwithstanding
27section 8.33, the moneys transferred in accordance with this
28subsection shall not revert to the account or fund from which
29appropriated or transferred.
   303.  Any contract entered into by the department of education
31relating to the provisions of this chapter in effect at the
32conclusion of the fiscal year beginning July 1, 2019, shall
33continue in full force and effect pending transfer of such
34contracts to the department of management.
   354.  Any rule, regulation, form, order, or directive
-7-1promulgated by the department of education relative to the
2provisions of this chapter in existence at the conclusion of
3the fiscal year beginning July 1, 2019, shall continue in full
4force and effect until amended, repealed, or supplemented by
5affirmative action of the department of management under the
6duties and powers established in this chapter and under the
7procedure established in subsection 5.
   85.  In regard to updating references and format in the Iowa
9administrative code in order to correspond to the transferring
10of duties of this chapter, the administrative rules coordinator
11and the administrative rules review committee, in consultation
12with the administrative code editor, shall jointly develop a
13schedule for the necessary updating of the Iowa administrative
14code.
15   Sec. 16.  Section 257C.5, subsection 1, Code 2019, is amended
16to read as follows:
   171.  The powers of the authority are vested in and exercised
18by a board consisting of five members, including the treasurer
19of state, the director of the department of education, and the
20director of the department of management, and two three members
21appointed by the governor, subject to confirmation by the
22senate. The state officials may designate representatives to
23serve on the board for them. As far as possible, the governor
24shall appoint members who are knowledgeable or experienced in
25the school systems of this state or in finance.
26   Sec. 17.  NEW SECTION.  258.18  Transfer of authority and
27duties.
   281.  Beginning July 1, 2020, the authority and duties of the
29department of education, the state board of education, and the
30director of the department of education under this chapter
31shall be transferred to the department of workforce development
32and the director of the department of workforce development.
33Accordingly, beginning July 1, 2020, all references to the
34department of education under this chapter and references
35to the department of education under other provisions of
-8-1law relating to this chapter shall mean the department of
2workforce development and all references to the state board
3of education or the director of the department of education
4under this chapter or other provisions of law relating to this
5chapter shall mean the director of the department of workforce
6development.
   72.  Any moneys remaining in any account or fund under the
8control of the department of education at the conclusion
9of the fiscal year beginning July 1, 2019, relative to the
10provisions of this chapter shall be transferred to the control
11of the department of workforce development for such purposes.
12Notwithstanding section 8.33, the moneys transferred in
13accordance with this subsection shall not revert to the account
14or fund from which appropriated or transferred.
   153.  Any contract entered into by the department of education
16relating to the provisions of this chapter in effect at the
17conclusion of the fiscal year beginning July 1, 2019, shall
18continue in full force and effect pending transfer of such
19contracts to the department of workforce development.
   204.  Any rule, regulation, form, order, or directive
21promulgated by the department of education relative to the
22provisions of this chapter in existence at the conclusion of
23the fiscal year beginning July 1, 2019, shall continue in full
24force and effect until amended, repealed, or supplemented by
25affirmative action of the department of workforce development
26under the duties and powers established in this chapter and
27under the procedure established in subsection 5.
   285.  In regard to updating references and format in the Iowa
29administrative code in order to correspond to the transferring
30of duties of this chapter, the administrative rules coordinator
31and the administrative rules review committee, in consultation
32with the administrative code editor, shall jointly develop a
33schedule for the necessary updating of the Iowa administrative
34code.
35   Sec. 18.  NEW SECTION.  259.1A  Transfer of authority and
-9-1duties.
   21.  Beginning July 1, 2020, the authority and duties of the
3department of education, the state board of education, and the
4director of the department of education under this chapter
5shall be transferred to the department of workforce development
6and the director of the department of workforce development.
7Accordingly, beginning July 1, 2020, all references to the
8department of education under this chapter and references
9to the department of education under other provisions of
10law relating to this chapter shall mean the department of
11workforce development and all references to the state board
12of education or the director of the department of education
13under this chapter or other provisions of law relating to this
14chapter shall mean the director of the department of workforce
15development.
   162.  Beginning July 1, 2020, the division of vocational
17rehabilitation services created within the department of
18education under section 259.3 shall be transferred to the
19department of workforce development.
   203.  Any moneys remaining in any account or fund under the
21control of the department of education at the conclusion
22of the fiscal year beginning July 1, 2019, relative to the
23provisions of this chapter shall be transferred to the control
24of the department of workforce development for such purposes.
25Notwithstanding section 8.33, the moneys transferred in
26accordance with this subsection shall not revert to the account
27or fund from which appropriated or transferred.
   284.  Any contract entered into by the department of education
29relating to the provisions of this chapter in effect at the
30conclusion of the fiscal year beginning July 1, 2019, shall
31continue in full force and effect pending transfer of such
32contracts to the department of workforce development.
   335.  Any rule, regulation, form, order, or directive
34promulgated by the department of education relative to the
35provisions of this chapter in existence at the conclusion of
-10-1the fiscal year beginning July 1, 2019, shall continue in full
2force and effect until amended, repealed, or supplemented by
3affirmative action of the department of workforce development
4under the duties and powers established in this chapter and
5under the procedure established in subsection 6.
   66.  In regard to updating references and format in the Iowa
7administrative code in order to correspond to the transferring
8of duties of this chapter, the administrative rules coordinator
9and the administrative rules review committee, in consultation
10with the administrative code editor, shall jointly develop a
11schedule for the necessary updating of the Iowa administrative
12code.
13   Sec. 19.  NEW SECTION.  260C.1A  Transfer of authority and
14duties.
   151.  Beginning July 1, 2020, the authority and duties of the
16department of education, the state board of education, and the
17director of the department of education under this chapter
18shall, to the extent feasible, be transferred to the boards of
19directors of the community colleges serving the merged areas of
20the state. Accordingly, beginning July 1, 2020, all references
21to the department of education, the state board of education,
22and the director of the department of education under this
23chapter and references to the department of education, the
24state board of education, and the director of the department
25of education under other provisions of law relating to this
26chapter shall mean the applicable board of directors of a
27community college.
   282.  Beginning July 1, 2020, transfer of the duties and
29authority of the department shall also include all duties and
30authority of the community colleges division created within the
31department of education under section 260C.6.
   323.  Any moneys remaining in any account or fund under the
33control of the department of education at the conclusion of the
34fiscal year beginning July 1, 2019, relative to the provisions
35of this chapter shall be transferred to the control of the
-11-1applicable board of directors of a community college for such
2purposes. Notwithstanding section 8.33, the moneys transferred
3in accordance with this subsection shall not revert to the
4account or fund from which appropriated or transferred.
   54.  Any contract entered into by the department of education
6relating to the provisions of this chapter in effect at the
7conclusion of the fiscal year beginning July 1, 2019, shall
8continue in full force and effect pending transfer of such
9contracts to the boards of directors of the community colleges.
   105.  Any rule, regulation, form, order, or directive
11promulgated by the department of education relative to the
12provisions of this chapter in existence at the conclusion of
13the fiscal year beginning July 1, 2019, shall continue in full
14force and effect.
15   Sec. 20.  Section 260E.7, subsection 1, Code 2019, is amended
16to read as follows:
   171.  The economic development authority, in consultation with
18the department of education, the department of revenue, and
19the department of workforce development, shall coordinate and
20review the new jobs training program. The economic development
21authority shall adopt, amend, and repeal rules under chapter
2217A that the community college will use in developing projects
23with new and expanding industrial new jobs training proposals
24and that the economic development authority shall use to review
25and report on the new jobs training program as required in this
26section.
27   Sec. 21.  Section 260F.3, subsection 5, Code 2019, is amended
28to read as follows:
   295.  Other criteria established by the department authority.
30   Sec. 22.  Section 260F.6B, Code 2019, is amended to read as
31follows:
   32260F.6B  High technology apprenticeship program.
   33The community colleges and the authority are authorized
34to fund high technology apprenticeship programs which comply
35with the requirements specified in section 260C.44 and which
-12-1may include both new and statewide apprenticeship programs.
2Notwithstanding the provisions of section 260F.6, subsection
32, relating to maximum award amounts, moneys allocated to
4the community colleges with high technology apprenticeship
5programs shall be distributed to the community colleges based
6upon contact hours under the programs administered during the
7prior fiscal year as determined by the department of education
8
 authority. The authority shall adopt rules governing this
9section’s operation and participant eligibility.
10   Sec. 23.  Section 260F.7, Code 2019, is amended to read as
11follows:
   12260F.7  Authority to coordinate.
   13The authority, in consultation with the department of
14education and
the department of workforce development, shall
15coordinate the jobs training program. A project shall not be
16funded under this chapter unless the authority approves the
17project. The authority shall adopt rules pursuant to chapter
1817A governing the program’s operation and eligibility for
19participation in the program. The authority shall establish
20by rule criteria for determining what constitutes an eligible
21business.
22   Sec. 24.  Section 260H.2, subsection 1, Code 2019, is amended
23to read as follows:
   241.  A pathways for academic career and employment program
25is established to provide funding to community colleges
26for the development of projects in coordination with the
27economic development authority, the department of education,
28 the department of workforce development, local workforce
29development boards established pursuant to section 84A.4, and
30community partners to implement a simplified, streamlined, and
31comprehensive process, along with customized support services,
32to enable eligible participants to acquire effective academic
33and employment training to secure gainful, quality, in-state
34employment.
35   Sec. 25.  Section 260H.2, subsection 2, paragraph a, Code
-13-12019, is amended to read as follows:
   2a.  A pathways for academic career and employment fund
3is created for the community colleges in the state treasury
4to be administered by the department of education economic
5development authority
. The moneys in the pathways for academic
6career and employment fund are appropriated to the department
7of education
 economic development authority for the pathways
8for academic career and employment program.
9   Sec. 26.  Section 260H.8, Code 2019, is amended to read as
10follows:
   11260H.8  Rules.
   12The department of education authority, in consultation with
13the community colleges, the economic development authority,
14 and the department of workforce development, shall adopt rules
15pursuant to chapter 17A and this chapter to implement the
16provisions of this chapter. Local workforce development boards
17established pursuant to section 84A.4 shall be consulted in the
18development and implementation of rules to be adopted pursuant
19to this chapter.
20   Sec. 27.  Section 260I.2, subsection 2, paragraph a, Code
212019, is amended to read as follows:
   22a.  There is established for the community colleges
23a gap tuition assistance fund in the state treasury to
24be administered by the department of education economic
25development authority
. The funds in the gap tuition assistance
26fund are appropriated to the department of education economic
27development authority
for the gap tuition assistance program.
28   Sec. 28.  Section 260I.3, subsection 1, Code 2019, is amended
29to read as follows:
   301.  The department of education, in consultation with the
31 economic development authority, shall adopt rules pursuant to
32this chapter defining eligibility criteria for persons applying
33to receive tuition assistance under this chapter.
34   Sec. 29.  Section 260I.10, Code 2019, is amended to read as
35follows:
-14-   1260I.10  Oversight.
   21.  The department of education economic development
3authority
, in coordination with the community colleges, shall
4establish a steering committee. The steering committee shall
5determine if the performance measures of the gap tuition
6assistance program are being met and shall take necessary steps
7to correct any deficiencies. The steering committee shall meet
8at least quarterly to evaluate and monitor the performance of
9the gap tuition assistance program.
   102.  The department of education economic development
11authority
, in coordination with the community colleges,
12shall develop a common intake tracking system that shall be
13implemented consistently by each participating community
14college.
   153.  The department of education economic development
16authority
shall coordinate statewide oversight, evaluation, and
17reporting efforts for the gap tuition assistance program.
18   Sec. 30.  Section 260I.11, Code 2019, is amended to read as
19follows:
   20260I.11  Rules.
   21The department of education economic development authority,
22in consultation with the economic development authority and the
23 community colleges, shall adopt rules pursuant to chapter 17A
24and this chapter to implement the provisions of this chapter.
25   Sec. 31.  Section 261.1, subsection 2, paragraph b, Code
262019, is amended by striking the paragraph.
27   Sec. 32.  NEW SECTION.  261.8  Transfer of authority and
28duties.
   291.  Beginning July 1, 2020, the authority and duties of the
30department of education, the state board of education, and the
31director of the department of education under this chapter
32shall be transferred to the college student aid commission.
33Accordingly, beginning July 1, 2020, all references to the
34department of education or the director of the department of
35education under this chapter and references to the department
-15-1of education or the director of the department of education
2under other provisions of law relating to this chapter shall
3mean the college student aid commission.
   42.  Any moneys remaining in any account or fund under the
5control of the department of education at the conclusion
6of the fiscal year beginning July 1, 2019, relative to the
7provisions of this chapter shall be transferred to the control
8of the college student aid commission for such purposes.
9Notwithstanding section 8.33, the moneys transferred in
10accordance with this subsection shall not revert to the account
11or fund from which appropriated or transferred.
   123.  Any contract entered into by the department of education
13relating to the provisions of this chapter in effect at the
14conclusion of the fiscal year beginning July 1, 2019, shall
15continue in full force and effect pending transfer of such
16contracts to the college student aid commission.
   174.  Any rule, regulation, form, order, or directive
18promulgated by the department of education relative to the
19provisions of this chapter in existence at the conclusion of
20the fiscal year beginning July 1, 2019, shall continue in full
21force and effect until amended, repealed, or supplemented by
22affirmative action of the college student aid commission under
23the duties and powers established in this chapter and under the
24procedure established in subsection 5.
   255.  In regard to updating references and format in the Iowa
26administrative code in order to correspond to the transferring
27of duties of this chapter, the administrative rules coordinator
28and the administrative rules review committee, in consultation
29with the administrative code editor, shall jointly develop a
30schedule for the necessary updating of the Iowa administrative
31code.
32   Sec. 33.  NEW SECTION.  261E.1A  Transfer of authority and
33duties.
   341.  Beginning July 1, 2020, the authority and duties of
35the department of education, the state board of education,
-16-1and the director of the department of education under this
2chapter shall be transferred to the state board of regents.
3Accordingly, beginning July 1, 2020, all references to the
4department of education, the state board of education, or the
5director of the department of education under this chapter
6and references to the department of education, state board of
7education, or director of the department of education under
8other provisions of law relating to this chapter shall mean the
9state board of regents.
   102.  Any moneys remaining in any account or fund under the
11control of the department of education at the conclusion of the
12fiscal year beginning July 1, 2019, relative to the provisions
13of this chapter shall be transferred to the control of the
14state board of regents for such purposes. Notwithstanding
15section 8.33, the moneys transferred in accordance with this
16subsection shall not revert to the account or fund from which
17appropriated or transferred.
   183.  Any contract entered into by the department of education
19relating to the provisions of this chapter in effect at the
20conclusion of the fiscal year beginning July 1, 2019, shall
21continue in full force and effect pending transfer of such
22contracts to the state board of regents.
   234.  Any rule, regulation, form, order, or directive
24promulgated by the department of education relative to the
25provisions of this chapter in existence at the conclusion of
26the fiscal year beginning July 1, 2019, shall continue in full
27force and effect until amended, repealed, or supplemented by
28affirmative action of the state board of regents under the
29duties and powers established in this chapter and under the
30procedure established in subsection 5.
   315.  In regard to updating references and format in the Iowa
32administrative code in order to correspond to the transferring
33of duties of this chapter, the administrative rules coordinator
34and the administrative rules review committee, in consultation
35with the administrative code editor, shall jointly develop a
-17-1schedule for the necessary updating of the Iowa administrative
2code.
3   Sec. 34.  Section 262.9, subsection 27, Code 2019, is amended
4to read as follows:
   527.  Explore, in conjunction with the department
6of education,
the need for coordination between school
7districts, area education agencies, state board of regents
8institutions, and community colleges for purposes of delivery
9of courses, use of telecommunications, transportation, and
10other similar issues. Coordination may include but is not
11limited to coordination of calendars, programs, schedules, or
12telecommunications emissions. The state board shall develop
13recommendations as necessary, which shall be submitted in a
14report to the general assembly on a timely basis.
15   Sec. 35.  Section 262.9, subsection 33, unnumbered paragraph
161, Code 2019, is amended to read as follows:
   17In consultation with the state board of education, establish
18
 Establish and enter into a collective statewide articulation
19agreement with the community colleges established pursuant to
20chapter 260C, which shall provide for the seamless transfer
21of academic credits from a completed associate of arts or
22associate of science degree program offered by a community
23college to a baccalaureate degree program offered by an
24institution of higher education governed by the board. The
25board shall also do the following:
26   Sec. 36.  Section 262.9, subsection 33, paragraph i, Code
272019, is amended to read as follows:
   28i.  Prepare, jointly with the department of education and
29 the liaison advisory committee on transfer students, and submit
30by January 15 annually to the general assembly, an update on
31the articulation efforts and activities implemented by the
32community colleges and the institutions of higher education
33governed by the board.
34   Sec. 37.  Section 262.71, subsection 9, Code 2019, is amended
35by striking the subsection.
-18-
1   Sec. 38.  Section 272.1, subsection 4, Code 2019, is amended
2by striking the subsection.
3   Sec. 39.  NEW SECTION.  272.1A  Transfer of authority and
4duties.
   51.  Beginning July 1, 2020, the authority and duties of the
6department of education, the state board of education, and the
7director of the department of education under this chapter
8shall be transferred to the board of educational examiners.
9Accordingly, beginning July 1, 2020, all references to the
10department of education, the state board of education, or the
11director of the department of education under this chapter
12and references to the department of education, state board of
13education, or director of the department of education under
14other provisions of law relating to this chapter shall mean the
15board of educational examiners.
   162.  Any moneys remaining in any account or fund under the
17control of the department of education at the conclusion
18of the fiscal year beginning July 1, 2019, relative to the
19provisions of this chapter shall be transferred to the control
20of the board of educational examiners for such purposes.
21Notwithstanding section 8.33, the moneys transferred in
22accordance with this subsection shall not revert to the account
23or fund from which appropriated or transferred.
   243.  Any contract entered into by the department of education
25relating to the provisions of this chapter in effect at the
26conclusion of the fiscal year beginning July 1, 2019, shall
27continue in full force and effect pending transfer of such
28contracts to the board of educational examiners.
29   Sec. 40.  Section 272.3, subsection 1, unnumbered paragraph
301, Code 2019, is amended to read as follows:
   31The board of educational examiners consists of twelve
32members. Two must be members of the general public, one
33must be the director of the department of education or the
34director’s designee,
and the remaining nine ten members must be
35licensed practitioners. One of the public members shall have
-19-1served on a school board. The public members shall never have
2held a practitioner’s license, but shall have a demonstrated
3interest in education. The nine ten practitioners shall be
4selected from the following areas and specialties of the
5teaching profession:
6   Sec. 41.  Section 272.3, subsection 2, Code 2019, is amended
7to read as follows:
   82.  A majority of the licensed practitioner members shall
9be nonadministrative practitioners. Four of the members shall
10be administrators. Membership of the board shall comply with
11the requirements of sections 69.16 and 69.16A. A quorum of the
12board shall consist of six members. Members shall elect a
13chairperson of the board. Members, except for the director of
14the department of education or the director’s designee,
shall
15be appointed by the governor subject to confirmation by the
16senate.
17   Sec. 42.  Section 272.4, subsection 1, unnumbered paragraph
181, Code 2019, is amended to read as follows:
   19Members, except for the director of the department of
20education or the director’s designee,
shall be appointed to
21serve staggered terms of four years. A member shall not serve
22more than two consecutive terms, except for the director of the
23department of education or the director’s designee, who shall
24serve until the director’s term of office expires
. A member of
25the board, except for the two public members and the director
26of the department of education or the director’s designee
,
27shall hold a valid practitioner’s license during the member’s
28term of office. A vacancy exists when any of the following
29occur:
30   Sec. 43.  NEW SECTION.  273.1A  Transfer of authority and
31duties.
   321.  Beginning July 1, 2020, the authority and duties of
33the department of education, the state board of education,
34and the director of the department of education under this
35chapter shall, to the extent feasible, be transferred to the
-20-1area education agency boards of directors in this state.
2Accordingly, beginning July 1, 2020, all references to the
3department of education, the state board of education, and the
4director of the department of education under this chapter and
5references to the department of education, the state board of
6education, and the director of the department of education
7under other provisions of law relating to this chapter shall
8mean the applicable area education agency board of directors.
   92.  Any rule, regulation, form, order, or directive
10promulgated by the department of education relative to the
11provisions of this chapter in existence at the conclusion of
12the fiscal year beginning July 1, 2019, shall continue in full
13force and effect.
14   Sec. 44.  Section 273.2, subsection 5, unnumbered paragraph
151, Code 2019, is amended to read as follows:
   16The area education agency board may provide for the
17following programs and services to local school districts, and
18at the request of local school districts to providers of child
19development services who have received grants under chapter
20256A from the child development coordinating council,
within
21the limits of funds available:
22   Sec. 45.  NEW SECTION.  274.1A  Transfer of authority and
23duties.
   241.  Beginning July 1, 2020, the authority and duties of the
25department of education and the director of the department of
26education under this chapter shall, to the extent feasible, be
27transferred to the area education agency boards of directors
28in this state. Accordingly, beginning July 1, 2020, all
29references to the department of education and the director of
30the department of education under this chapter and references
31to the department of education and the director of the
32department of education under other provisions of law relating
33to this chapter shall mean the applicable area education agency
34board of directors.
   352.  Any rule, regulation, form, order, or directive
-21-1promulgated by the department of education or the director
2of the department of education relative to the provisions of
3this chapter in existence at the conclusion of the fiscal
4year beginning July 1, 2019, shall continue in full force and
5effect.
6   Sec. 46.  NEW SECTION.  275.1A  Transfer of authority and
7duties.
   81.  Beginning July 1, 2020, the authority and duties of
9the department of education, the state board of education,
10and the director of the department of education under this
11chapter shall, to the extent feasible, be transferred to the
12area education agency boards of directors in this state.
13Accordingly, beginning July 1, 2020, all references to the
14department of education, the state board of education, and the
15director of the department of education under this chapter and
16references to the department of education, the state board of
17education, and the director of the department of education
18under other provisions of law relating to this chapter shall
19mean the applicable area education agency board of directors.
   202.  Any rule, regulation, form, order, or directive
21promulgated by the department of education, the state board
22of education, or the director of the department of education
23relative to the provisions of this chapter in existence at the
24conclusion of the fiscal year beginning July 1, 2019, shall
25continue in full force and effect.
26   Sec. 47.  Section 276.3, subsections 5 and 9, Code 2019, are
27amended by striking the subsections.
28   Sec. 48.  Section 279.51, subsection 1, unnumbered paragraph
291, Code 2019, is amended to read as follows:
   30There is appropriated from the general fund of the state
31to the department of education management for the fiscal year
32beginning July 1, 2007, and each succeeding fiscal year, the
33sum of twelve million six hundred six thousand one hundred
34ninety-six dollars. The moneys shall be allocated as follows:
35   Sec. 49.  Section 279.51, subsection 1, paragraphs b and d,
-22-1Code 2019, are amended by striking the paragraphs.
2   Sec. 50.  Section 279.51, subsection 2, Code 2019, is amended
3by striking the subsection.
4   Sec. 51.  NEW SECTION.  279.72  Transfer of authority and
5duties.
   61.  Beginning July 1, 2020, the authority and duties of
7the department of education, the state board of education,
8and the director of the department of education under this
9chapter, to the extent feasible, shall be transferred to the
10boards of directors for the respective school districts in the
11state. Accordingly, beginning July 1, 2020, all references to
12the department of education, the state board of education, and
13the director of the department of education under this chapter
14and references to the department of education, the state board
15of education, and the director of the department of education
16under other provisions of law relating to this chapter shall
17mean the applicable board of directors of the school district.
   182.  Any rule, regulation, form, order, or directive
19promulgated by the department of education, the state board
20of education, or the director of the department of education
21relative to the provisions of this chapter in existence at the
22conclusion of the fiscal year beginning July 1, 2019, shall
23continue in full force and effect.
24   Sec. 52.  NEW SECTION.  280.1A  Transfer of authority and
25duties.
   261.  Beginning July 1, 2020, the authority and duties of
27the department of education, the state board of education,
28and the director of the department of education under this
29chapter, to the extent feasible, shall be transferred to the
30boards of directors for the respective school districts in the
31state. Accordingly, beginning July 1, 2020, all references to
32the department of education, the state board of education, and
33the director of the department of education under this chapter
34and references to the department of education, the state board
35of education, and the director of the department of education
-23-1under other provisions of law relating to this chapter shall
2mean the applicable board of directors of the school district.
   32.  Any rule, regulation, form, order, or directive
4promulgated by the department of education, the state board
5of education, or the director of the department of education
6relative to the provisions of this chapter in existence at the
7conclusion of the fiscal year beginning July 1, 2019, shall
8continue in full force and effect.
9   Sec. 53.  NEW SECTION.  282.1A  Transfer of authority and
10duties.
   111.  Beginning July 1, 2020, the authority and duties of
12the department of education, the state board of education,
13and the director of the department of education under this
14chapter, to the extent feasible, shall be transferred to the
15boards of directors for the respective school districts in the
16state. Accordingly, beginning July 1, 2020, all references to
17the department of education, the state board of education, and
18the director of the department of education under this chapter
19and references to the department of education, the state board
20of education, and the director of the department of education
21under other provisions of law relating to this chapter shall
22mean the applicable board of directors of the school district.
   232.  Any rule, regulation, form, order, or directive
24promulgated by the department of education, the state board
25of education, or the director of the department of education
26relative to the provisions of this chapter in existence at the
27conclusion of the fiscal year beginning July 1, 2019, shall
28continue in full force and effect.
29   Sec. 54.  Section 282.18, subsections 5 and 14, Code 2019,
30are amended to read as follows:
   315.  Open enrollment applications filed after March 1
32of the preceding school year that do not qualify for good
33cause as provided in subsection 4 shall be subject to the
34approval of the board of the resident district and the board
35of the receiving district. The parent or guardian shall send
-24-1notification to the district of residence and the receiving
2district that the parent or guardian seeks to enroll the
3parent’s or guardian’s child in the receiving district. A
4decision of either board to deny an application filed under
5this subsection involving repeated acts of harassment of the
6student or serious health condition of the student that the
7resident district cannot adequately address is subject to
8appeal under section 290.1. The state board shall exercise
9broad discretion to achieve just and equitable results that are
10in the best interest of the affected child or children.

   1114.  If a request under this section is for transfer to a
12laboratory school, as described in chapter 265, the student,
13who is the subject of the request, shall not be included in
14the basic enrollment of the student’s district of residence,
15and the laboratory school shall report the enrollment of the
16student directly to the department of education management,
17unless the number of students from the district attending the
18laboratory school during the current school year, as a result
19of open enrollment under this section, exceeds the number of
20students enrolled in the laboratory school from that district
21during the 1989-1990 school year. If the number of students
22enrolled in the laboratory school from a district during the
23current year exceeds the number of students enrolled from that
24district during the 1989-1990 school year, those students who
25represent the difference between the current and the 1988-1989
26school year enrollment figures shall be included in the basic
27enrollment of the students’ districts of residence and the
28districts shall retain any moneys received as a result of the
29inclusion of the student in the district enrollment. The total
30number of students enrolled at a laboratory school during a
31school year shall not exceed six hundred seventy students. The
32regents institution operating the laboratory school and the
33board of directors of the school district in the community
34in which the regents institution is located shall develop
35a student transfer policy designed to protect and promote
-25-1the quality and integrity of the teacher education program
2at the laboratory school, the viability of the education
3program of the local school district in which the regents
4institution is located, and to indicate the order in which and
5reasons why requests to transfer to a laboratory school shall
6be considered. A laboratory school may deny a request for
7transfer under the policy. A denial of a request to transfer
8under this subsection is not subject to appeal under section
9290.1.

10   Sec. 55.  Section 282.18, subsection 16, Code 2019, is
11amended by striking the subsection.
12   Sec. 56.  Section 283.1, Code 2019, is amended to read as
13follows:
   14283.1  Federal funds accepted.
   15The director of the department of education management
16 is the “state educational authority” for the purpose of
17accepting and administering funds appropriated by Congress for
18educational purposes and the funds shall be deposited with the
19treasurer of state and disbursed through the department of
20administrative services on vouchers audited as provided by law.
21When state matching funds are required as a condition to the
22acceptance of federal funds, the director of the department
23of education management may make expenditures for matching
24only from funds provided by the legislature for that purpose.
25However, when federal funds may be matched with expenditures
26from funds appropriated for the general operation of the
27department of education management, this may be done with the
28approval of the legislative council.
29   Sec. 57.  NEW SECTION.  283A.1A  Transfer of authority and
30duties.
   311.  Beginning July 1, 2020, the authority and duties of
32the department of education, the state board of education,
33and the director of the department of education under this
34chapter, to the extent feasible, shall be transferred to the
35boards of directors for the respective school districts in the
-26-1state. Accordingly, beginning July 1, 2020, all references to
2the department of education, the state board of education, and
3the director of the department of education under this chapter
4and references to the department of education, the state board
5of education, and the director of the department of education
6under other provisions of law relating to this chapter shall
7mean the applicable board of directors of the school district.
   82.  Any rule, regulation, form, order, or directive
9promulgated by the department of education, the state board
10of education, or the director of the department of education
11relative to the provisions of this chapter in existence at the
12conclusion of the fiscal year beginning July 1, 2019, shall
13continue in full force and effect.
14   Sec. 58.  Section 283A.3, Code 2019, is amended to read as
15follows:
   16283A.3  Expenditure of federal funds.
   17The director of the department of education management shall
18accept and direct the disbursement of funds appropriated by any
19Act of Congress and appropriated to the state of Iowa for use
20in connection with school breakfast or lunch programs. The
21director shall deposit the funds with the treasurer of the
22state of Iowa, who shall make disbursements upon the direction
23of the director.
24   Sec. 59.  NEW SECTION.  284.1A  Transfer of authority and
25duties.
   261.  Beginning July 1, 2020, the authority and duties of
27the department of education, the state board of education,
28and the director of the department of education under this
29chapter, to the extent feasible, shall be transferred to the
30boards of directors for the respective school districts in the
31state. Accordingly, beginning July 1, 2020, all references to
32the department of education, the state board of education, and
33the director of the department of education under this chapter
34and references to the department of education, the state board
35of education, and the director of the department of education
-27-1under other provisions of law relating to this chapter shall
2mean the applicable board of directors of the school district.
   32.  Any rule, regulation, form, order, or directive
4promulgated by the department of education, the state board
5of education, or the director of the department of education
6relative to the provisions of this chapter in existence at the
7conclusion of the fiscal year beginning July 1, 2019, shall
8continue in full force and effect.
9   Sec. 60.  NEW SECTION.  284A.1A  Transfer of authority and
10duties.
   111.  Beginning July 1, 2020, the authority and duties of
12the department of education, the state board of education,
13and the director of the department of education under this
14chapter, to the extent feasible, shall be transferred to the
15boards of directors for the respective school districts in the
16state. Accordingly, beginning July 1, 2020, all references to
17the department of education, the state board of education, and
18the director of the department of education under this chapter
19and references to the department of education, the state board
20of education, and the director of the department of education
21under other provisions of law relating to this chapter shall
22mean the applicable board of directors of the school district.
   232.  Any rule, regulation, form, order, or directive
24promulgated by the department of education, the state board
25of education, or the director of the department of education
26relative to the provisions of this chapter in existence at the
27conclusion of the fiscal year beginning July 1, 2019, shall
28continue in full force and effect.
29   Sec. 61.  NEW SECTION.  285.7  Transfer of authority and
30duties.
   311.  Beginning July 1, 2020, the authority and duties of
32the department of education, the state board of education,
33and the director of the department of education under this
34chapter, to the extent feasible, shall be transferred to the
35boards of directors for the respective school districts in the
-28-1state. Accordingly, beginning July 1, 2020, all references to
2the department of education, the state board of education, and
3the director of the department of education under this chapter
4and references to the department of education, the state board
5of education, and the director of the department of education
6under other provisions of law relating to this chapter shall
7mean the applicable board of directors of the school district.
   82.  Any rule, regulation, form, order, or directive
9promulgated by the department of education, the state board
10of education, or the director of the department of education
11relative to the provisions of this chapter in existence at the
12conclusion of the fiscal year beginning July 1, 2019, shall
13continue in full force and effect.
14   Sec. 62.  Section 291.11, Code 2019, is amended to read as
15follows:
   16291.11  Officers reported.
   17The secretary shall report to the director of the department
18of education management, the county auditor, and county
19treasurer the name and post office address of the president,
20treasurer and secretary of the board as soon as practicable
21after the qualification of each.
22   Sec. 63.  NEW SECTION.  292.1A  Transfer of authority and
23duties.
   241.  Beginning July 1, 2020, the authority and duties of the
25department of education under this chapter shall be transferred
26to the department of revenue. Accordingly, beginning July 1,
272020, all references to the department of education under this
28chapter and references to the department of education under
29other provisions of law relating to this chapter shall mean the
30department of revenue.
   312.  Any moneys remaining in any account or fund under the
32control of the department of education at the conclusion of the
33fiscal year beginning July 1, 2019, relative to the provisions
34of this chapter shall be transferred to the control of the
35department of revenue for such purposes. Notwithstanding
-29-1section 8.33, the moneys transferred in accordance with this
2subsection shall not revert to the account or fund from which
3appropriated or transferred.
   43.  Any contract entered into by the department of education
5relating to the provisions of this chapter in effect at the
6conclusion of the fiscal year beginning July 1, 2019, shall
7continue in full force and effect pending transfer of such
8contracts to the department of revenue.
   94.  Any rule, regulation, form, order, or directive
10promulgated by the department of education relative to the
11provisions of this chapter in existence at the conclusion of
12the fiscal year beginning July 1, 2019, shall continue in full
13force and effect until amended, repealed, or supplemented by
14affirmative action of the department of revenue under the
15duties and powers established in this chapter and under the
16procedure established in subsection 5.
   175.  In regard to updating references and format in the Iowa
18administrative code in order to correspond to the transferring
19of duties of this chapter, the administrative rules coordinator
20and the administrative rules review committee, in consultation
21with the administrative code editor, shall jointly develop a
22schedule for the necessary updating of the Iowa administrative
23code.
24   Sec. 64.  Section 294.5, Code 2019, is amended to read as
25follows:
   26294.5  Reports.
   27The teacher shall file with the school superintendent and
28the director of the department of education
such reports and in
29such manner as may be required.
30   Sec. 65.  Section 296.3, Code 2019, is amended to read as
31follows:
   32296.3  Election called.
   33Within ten days of receipt of a petition filed under section
34296.2, the president of the board of directors shall call a
35meeting of the board. The meeting shall be held within thirty
-30-1days after the petition was received. At the meeting, the
2board shall call the election, fixing the time of the election,
3which may be at the time and place of holding the regular
4school election. However, if the board determines by unanimous
5vote that the proposition or propositions requested by a
6petition to be submitted at an election are grossly unrealistic
7or contrary to the needs of the school district, no election
8shall be called. If more than one petition has been received
9by the time the board meets to consider the petition triggering
10the meeting, the board shall act upon the petitions in the
11order they were received at the meeting called to consider the
12initial petition. The decision of the board may be appealed to
13the state board of education as provided in chapter 290.
The
14president shall notify the county commissioner of elections of
15the time of the election.
16   Sec. 66.  NEW SECTION.  297.37  Transfer of authority and
17duties.
   181.  Beginning July 1, 2020, the authority and duties of the
19department of education and the director of the department
20of education under this chapter shall be transferred to the
21department of administrative services and the director of the
22department of administrative services. Accordingly, beginning
23July 1, 2020, all references to the department of education
24and the director of the department of education under this
25chapter and references to the department of education and the
26director of the department of education under other provisions
27of law relating to this chapter shall mean the department of
28administrative services or the director of the department of
29administrative services.
   302.  Any rule, regulation, form, order, or directive
31promulgated by the department of education or the director
32of the department of education relative to the provisions of
33this chapter in existence at the conclusion of the fiscal
34year beginning July 1, 2019, shall continue in full force and
35effect.
-31-
1   Sec. 67.  NEW SECTION.  299.25  Transfer of authority and
2duties.
   31.  Beginning July 1, 2020, the authority and duties of
4the department of education, the state board of education,
5and the director of the department of education under this
6chapter, to the extent feasible, shall be transferred to the
7boards of directors for the respective school districts in the
8state. Accordingly, beginning July 1, 2020, all references to
9the department of education, the state board of education, and
10the director of the department of education under this chapter
11and references to the department of education, the state board
12of education, and the director of the department of education
13under other provisions of law relating to this chapter shall
14mean the applicable board of directors of the school district.
   152.  Any rule, regulation, form, order, or directive
16promulgated by the department of education, the state board
17of education, or the director of the department of education
18relative to the provisions of this chapter in existence at the
19conclusion of the fiscal year beginning July 1, 2019, shall
20continue in full force and effect.
21   Sec. 68.  NEW SECTION.  299A.1A  Transfer of authority and
22duties.
   231.  Beginning July 1, 2020, the authority and duties of
24the department of education, the state board of education,
25and the director of the department of education under this
26chapter, to the extent feasible, shall be transferred to the
27boards of directors for the respective school districts in the
28state. Accordingly, beginning July 1, 2020, all references to
29the department of education, the state board of education, and
30the director of the department of education under this chapter
31and references to the department of education, the state board
32of education, and the director of the department of education
33under other provisions of law relating to this chapter shall
34mean the applicable board of directors of the school district.
   352.  Any rule, regulation, form, order, or directive
-32-1promulgated by the department of education, the state board
2of education, or the director of the department of education
3relative to the provisions of this chapter in existence at the
4conclusion of the fiscal year beginning July 1, 2019, shall
5continue in full force and effect.
6   Sec. 69.  NEW SECTION.  301.1A  Transfer of authority and
7duties.
   81.  Beginning July 1, 2020, the authority and duties of
9the department of education, the state board of education,
10and the director of the department of education under this
11chapter, to the extent feasible, shall be transferred to the
12boards of directors for the respective school districts in the
13state. Accordingly, beginning July 1, 2020, all references to
14the department of education, the state board of education, and
15the director of the department of education under this chapter
16and references to the department of education, the state board
17of education, and the director of the department of education
18under other provisions of law relating to this chapter shall
19mean the applicable board of directors of the school district.
   202.  Any rule, regulation, form, order, or directive
21promulgated by the department of education, the state board
22of education, or the director of the department of education
23relative to the provisions of this chapter in existence at the
24conclusion of the fiscal year beginning July 1, 2019, shall
25continue in full force and effect.
26   Sec. 70.  REPEAL.  Sections 260C.6, 276.4, and 291.10, Code
272019, are repealed.
28   Sec. 71.  REPEAL.  Chapters 256, 256A, 256G, and 290, Code
292019, are repealed.
30   Sec. 72.  EFFECTIVE DATE.  This division of this Act takes
31effect July 1, 2020.
32DIVISION II
33CORRESPONDING AMENDMENTS LEGISLATION
34   Sec. 73.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional
35legislation is required to fully implement division I of this
-33-1Act. The director of the department of education shall, in
2compliance with section 2.16, prepare draft legislation for
3submission to the legislative services agency, as necessary,
4to implement the transition and elimination of authority and
5duties under division I of this Act and to implement the
6transition and elimination of authority and duties under other
7provisions of law including but not limited to the duties and
8authority of the department of education, the state board of
9education, the director of the department of education, and any
10division, commission, or subunit of such entities or offices
11under chapters 7A, 7E, 8A, 8B, 8D, 8F, 11, 12, 15, 15H, 16, 19B,
1222, 48A, 68B, 73, 80E, 84A, 85, 96, 99B, 125, 135, 139A, 141A,
13142A, 154B, 154F, 161A, 190A, 216A, 218, 225C, 232, 234, 237,
14237A, 237C, 239B, 241, 249A, 257, 259A, 261B, 298A, 321, 321J,
15322, 350, 423E, 423F, 455A, 455E, 473, 514I, 714, and 904.
16DIVISION III
17EDUCATION FINANCE AND
18EDUCATION SAVINGS GRANTS
19   Sec. 74.  Section 8.6, Code 2019, is amended by adding the
20following new subsection:
21   NEW SUBSECTION.  16.  Education savings grant
22applications.
  Adopt rules relating to applications for an
23education savings grant pursuant to section 257.11B, including
24application processing timelines, and required information for
25submission by a parent or guardian.
26   Sec. 75.  NEW SECTION.  257.1A  Transfer of authority and
27duties.
   281.  Beginning July 1, 2020, the authority and duties of
29the department of education, the state board of education,
30and the director of the department of education under this
31chapter shall be transferred to the department of management
32and the director of the department of management. Accordingly,
33beginning July 1, 2020, all references to the department of
34education under this chapter and references to the department
35of education under other provisions of law relating to this
-34-1chapter shall mean the department of management and all
2references to the state board of education or the director
3of the department of education under this chapter or other
4provisions of law relating to this chapter shall mean the
5director of the department of management.
   62.  Any moneys remaining in any account or fund under the
7control of the department of education at the conclusion of the
8fiscal year beginning July 1, 2019, relative to the provisions
9of this chapter shall be transferred to the control of the
10department of management for such purposes. Notwithstanding
11section 8.33, the moneys transferred in accordance with this
12subsection shall not revert to the account or fund from which
13appropriated or transferred.
   143.  Any contract entered into by the department of education
15relating to the provisions of this chapter in effect at the
16conclusion of the fiscal year beginning July 1, 2019, shall
17continue in full force and effect pending transfer of such
18contracts to the department of management.
   194.  Any rule, regulation, form, order, or directive
20promulgated by the department of education relative to the
21provisions of this chapter in existence at the conclusion of
22the fiscal year beginning July 1, 2019, shall continue in full
23force and effect until amended, repealed, or supplemented by
24affirmative action of the department of management under the
25duties and powers established in this chapter and under the
26procedure established in subsection 5.
   275.  In regard to updating references and format in the Iowa
28administrative code in order to correspond to the transferring
29of duties of this chapter, the administrative rules coordinator
30and the administrative rules review committee, in consultation
31with the administrative code editor, shall jointly develop a
32schedule for the necessary updating of the Iowa administrative
33code.
34   Sec. 76.  NEW SECTION.  257.11B  Education savings grant
35program.
-35-
   11.  Pupils eligible to enroll in grades kindergarten through
2twelve or eligible to participate in a preschool program under
3chapter 256C and attending a nonpublic school, receiving
4competent private instruction under chapter 299A, or receiving
5private preschool instruction shall be eligible to receive an
6education savings grant in the manner provided in this section
7for school years beginning on or after July 1, 2020. Education
8savings grants shall be made available to parents and guardians
9in the manner authorized under subsection 4, paragraph “c”, for
10the payment of qualified educational expenses as provided in
11this section.
   122.  a.  (1)  By January 31 preceding the school year for
13which the education savings grant is requested, the parent
14or guardian of the pupil requesting to receive an education
15savings grant shall submit an application to the department of
16management, on application forms developed by the department of
17management, indicating that the parent or guardian intends to
18enroll the pupil in a nonpublic school, place the pupil under
19competent private instruction under chapter 299A, or provide
20private preschool instruction.
   21(2)  In addition to such information deemed appropriate by
22the department of management, the application shall require
23certification from the nonpublic school of the pupil’s
24enrollment for the following school year or a statement
25indicating the parent or guardian’s intent to place the pupil
26under competent private instruction or private preschool
27instruction for the following school year.
   28b.  By March 1 preceding the school year for which the
29education savings grant is requested, the department of
30management shall notify the parent or guardian of each pupil
31who is approved to receive an education savings grant and the
32amount of the grant.
   33c.  Education savings grants shall only be approved for one
34school year and applications must be submitted annually for
35education savings grants in subsequent school years.
-36-
   13.  a.   The department of management shall assign each
2pupil an education savings grant in an amount equal to the
3difference between eighty-seven and five-tenths percent of
4the regular program state cost per pupil and the statewide
5average foundation property tax per pupil for the same school
6year. However, for a pupil that is eligible to participate
7in a preschool program under chapter 256C, the amount of the
8grant shall be an amount equal to fifty percent of the regular
9program state cost per pupil for the same school year.
   10b.  The department of management shall on July 1 following
11the determination of the amount of the education savings grant
12for each approved pupil transfer such amounts to the pupil’s
13account in the education savings grant fund established under
14subsection 4. Such amount shall be available to the pupil’s
15parent or guardian in the manner authorized under subsection
164, paragraph “c”, for the payment of qualified educational
17expenses incurred by such persons for the pupil during that
18school year.
   194.  An education savings grant fund is created in the state
20treasury under the control of the department of management
21consisting of moneys appropriated to the department of
22management for the purpose of providing education savings
23grants under this section. For the fiscal year commencing July
241, 2020, and each succeeding fiscal year, there is appropriated
25from the general fund of the state to the department of
26management to be credited to the fund the amount necessary
27to pay all education savings grants approved for that fiscal
28year. The director of the department of management has all
29powers necessary to carry out and effectuate the purposes,
30objectives, and provisions of this section pertaining to the
31fund, including the power to do all of the following:
   32a.  Make and enter into contracts necessary for the
33administration of the fund.
   34b.  Procure insurance against any loss in connection with the
35assets of the fund or require a surety bond.
-37-
   1c.  Contract with a private financial management firm to
2manage the fund, in collaboration with the treasurer of state,
3including providing for the disbursement of education savings
4grants in the form of an electronic debit card or checks that
5are payable directly from the pupil’s account within the fund.
   6d.  Conduct audits or other review necessary to properly
7administer the program.
   8e.  Adopt rules pursuant to chapter 17A for the
9administration of the fund and accounts within the fund.
   105.  a.  For each pupil approved for an education savings
11grant, the department of management shall establish an account
12for that pupil in the education savings grant fund. The
13amount of the pupil’s education savings grant determined under
14subsection 3 shall be deposited into the pupil’s account on
15July 1 and such amount shall be immediately available for the
16payment of qualified educational expenses incurred by the
17parent or guardian for the pupil during that fiscal year using
18the payment method authorized under subsection 4, paragraph
19“c”.
   20b.  A nonpublic school or a provider of competent private
21instruction that accepts payment from a parent or guardian
22using funds from a pupil’s account in the education savings
23grant fund shall not refund, rebate, or share any portion of
24such payment with the parent, guardian, or pupil.
   25c.  Moneys remaining in a pupil’s account upon conclusion
26of the fiscal year shall remain in the pupil’s account in the
27education savings grant fund for the payment of qualified
28educational expenses in future fiscal years or for the payment
29of higher education costs under subsection 8.
   306.  For purposes of this section, “qualified educational
31expenses”
includes tuition and fees at a nonpublic school
32or nonpublic preschool, textbooks, fees or payments for
33tutoring or cognitive skills training, curriculum materials,
34tuition or fees for nonpublic online education programs,
35education materials and services for pupils with disabilities,
-38-1standardized test fees, fees required by the department not to
2exceed for each grant recipient five percent of the total grant
3amount in any fiscal year, and other expenses incurred by the
4parent or guardian that are directly related to the education
5of the pupil at a nonpublic preschool or a nonpublic school,
6including a nonpublic school accredited by an independent
7accrediting agency approved by the department of management, or
8directly related to providing competent private instruction for
9the pupil under chapter 299A or private preschool instruction.
10The cost of one computer or other portable computing device
11shall be allowed as a qualified educational expense for
12a pupil if such a purchase has not been made using funds
13from that pupil’s account in either of the two immediately
14preceding fiscal years. “Qualified educational expenses” do not
15include transportation costs for the pupil, the cost of food
16or refreshments consumed by the pupil, the cost of clothing
17for the pupil, or the cost of disposable materials including
18but not limited to paper, notebooks, pencils, pens, and art
19supplies.
   207.  A person who makes a false claim for the purpose
21of obtaining an education savings grant provided for in
22this section or who knowingly receives the grant or makes a
23payment from an account within the education savings grant
24fund without being legally entitled to do so is guilty of a
25fraudulent practice under chapter 714. The false claim for an
26education savings grant or a payment from an account shall be
27disallowed. If amounts from the grant have been disbursed from
28the applicable account in the education savings grant fund, the
29department of management shall initiate legal proceedings to
30recover such amounts. A parent or guardian, or a pupil for
31purposes of subsection 8, who commits a fraudulent practice
32under this subsection is prohibited from participating in the
33education savings grant program in the future.
   348.  For each pupil with a positive balance in the pupil’s
35account in the education savings grant fund upon graduation
-39-1from high school or completion of an equivalent level of
2competent private instruction under chapter 299A, the
3department of management shall maintain such account in the
4fund until the pupil is twenty-five years of age. Following
5graduation from high school until the pupil is twenty-five
6years of age, moneys in the pupil’s account may be used for
7qualified higher education expenses, as defined in section
812D.1, subsection 2, paragraph “k”, incurred by the pupil while
9attending an institution of higher education under the control
10of the state board of regents, a community college located
11in this state, or a private college or university located
12in this state. Payments from a pupil’s account for higher
13education costs shall be made in the same manner as payments
14for qualified educational expenses under subsection 5. Moneys
15in a pupil’s account when the pupil turns twenty-five years of
16age shall be transferred by the department of management for
17deposit in the general fund of the state.
   189.  This section shall not be construed to authorize the
19state or any political subdivision of the state to exercise
20authority over any nonpublic school or provider of competent
21private instruction under chapter 299A or construed to require
22a nonpublic school to modify its standards for admission or
23educational program in order to receive payment from a parent
24or guardian using funds from a pupil’s account in the education
25savings grant fund. A nonpublic school or provider of
26competent private instruction under chapter 299A that accepts
27payment from a parent or guardian using funds from a pupil’s
28account in the education savings grant fund is not an agent
29of this state or of a political subdivision of this state.
30Rules adopted by the department of management to implement this
31section that impose an undue burden on a nonpublic school or
32provider of competent private instruction under chapter 299A
33are invalid.
34   Sec. 77.  Section 422.7, Code 2019, is amended by adding the
35following new subsection:
-40-1   NEW SUBSECTION.  48.  Subtract, to the extent included, the
2amount of an education savings grant under section 257.11B
3received by the taxpayer for payment of qualified educational
4expenses.
5   Sec. 78.  APPLICABILITY.  Except as otherwise provided, this
6division of this Act applies to school budget years and fiscal
7years beginning on or after July 1, 2020.
8   Sec. 79.  APPLICABILITY.  The section of this division of
9this Act enacting section 422.7, subsection 48, applies to tax
10years beginning on or after January 1, 2020.
11   Sec. 80.  EFFECTIVE DATE.  The section of this division of
12this Act enacting section 257.1A takes effect July 1, 2020.
13DIVISION IV
14CORRESPONDING AMENDMENTS LEGISLATION
15   Sec. 81.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional
16legislation is required to fully implement the section of
17division III of this Act enacting section 257.1A. The director
18of the department of education shall, in compliance with
19section 2.16, prepare draft legislation for submission to the
20legislative services agency, as necessary, to implement the
21transition and elimination of authority and duties of the
22department of education, the state board of education, and
23director of the department of education under the section
24of division III of this Act enacting section 257.1A and to
25implement the transition and elimination of authority and
26duties under other provisions of law.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
   30This bill relates to education and school district funding
31by modifying the duties and authority of certain state and
32local governmental entities, establishing an education savings
33grant program, and modifying the school district funding
34formula.
   35Division I of the bill repeals Code chapter 256, which
-41-1establishes the department of education, establishes the office
2of the director of the department of education, establishes
3the state board of education, specifies certain educational
4standards, establishes various education programs, establishes
5certain councils and entities within the department of
6education, includes provisions relating to the participation in
7extracurricular activities, establishes the division of library
8services, includes the library compact, and establishes the
9public broadcasting division.
   10Division I of the bill also amends and repeals other chapters
11of the Code relating to education to transition the duties and
12authority of the department of education, the director of the
13department of education, and the state board of education to
14other specified local and state governmental entities beginning
15July 1, 2020.
   16Division I of the bill takes effect July 1, 2020.
   17Division II of the bill provides that additional legislation
18is required to fully implement Division I of the bill and
19requires the director of the department of education to
20prepare draft legislation for submission to the legislative
21services agency, as necessary, to implement the transition
22and elimination of authority and duties under Division I of
23the bill and to implement the transition and elimination of
24authority and duties under other provisions of law including
25but not limited to the duties and authority of the department
26of education, the state board of education, the director of
27the department of education, and any division, commission,
28or subunit of such entities or offices under specified Code
29chapters.
   30Division III of the bill provides that beginning July
311, 2020, the authority and duties of the department of
32education, the state board of education, and the director
33of the department of education under Code chapter 257 are
34transferred to the department of management and the director
35of the department of management. The bill also provides that
-42-1moneys remaining in any account or fund under the control of
2the department of education at the conclusion of the fiscal
3year beginning July 1, 2019, relative to the provisions of Code
4chapter 257 are transferred to the control of the department
5of management for such purposes. The bill provides that
6any contract entered into by the department of education
7relating to the provisions of Code chapter 257 in effect at
8the conclusion of the fiscal year beginning July 1, 2019,
9shall continue in full force and effect pending transfer of
10such contracts to the department of management. The bill also
11provides for the continuation of any rule, regulation, form,
12order, or directive promulgated by the department of education
13until amended, repealed, or supplemented by affirmative action
14of the department of management.
   15Division III of the bill provides education savings grants
16for pupils attending a nonpublic school, receiving competent
17private instruction, or receiving private preschool instruction
18and establishes an education savings grant fund.
   19Under Division III of the bill, pupils eligible to enroll
20in grades kindergarten through 12 or eligible to participate
21in a preschool program under Code chapter 256C and attending a
22nonpublic school, receiving competent private instruction under
23Code chapter 299A, or receiving private preschool instruction
24are eligible to receive an education savings grant for school
25years beginning on or after July 1, 2020. By January 31
26preceding the school year for which the education savings grant
27is requested, the parent or guardian of the pupil requesting to
28receive an education savings grant must submit an application
29to the department of management.
   30Division III of the bill requires that by March 1 preceding
31the school year for which the education savings grant is
32requested, the department of management must notify the parent
33or guardian of each pupil designated to receive an education
34savings grant and the amount of the education savings grant.
35Education savings grants may only be approved for one school
-43-1year and annual applications must be submitted for education
2savings grants in subsequent school years.
   3The amount of each education savings grant is equal to the
4statewide average regular program state foundation aid per
5pupil in the same school year or in the case of a preschool
6eligible pupil an amount equal to 50 percent of the regular
7program state cost per pupil.
   8Division III of the bill creates an education savings
9grant fund in the state treasury under the control of the
10department of management consisting of moneys appropriated to
11the department for the purpose of providing education savings
12grants. For the fiscal year commencing July 1, 2020, and each
13succeeding fiscal year, there is appropriated from the general
14fund of the state to the department of management for deposit
15in the fund the amount necessary to pay all education savings
16grants approved for that fiscal year. For each pupil approved
17for an education savings grant, the department of management
18must establish an account for that pupil in the education
19savings grant fund. The amount of the pupil’s education
20savings grant is deposited into the pupil’s account on July 1
21and such amount is available for use by parents and guardians
22for the payment of qualified educational expenses, as defined
23in the bill, incurred by the parent or guardian for the pupil
24during that fiscal year.
   25Division III of the bill authorizes the department of
26management to contract with a private financial management firm
27to manage the education savings grant fund, in collaboration
28with the treasurer of state, including providing for the
29disbursement of education savings grants in the form of an
30electronic debit card or checks that are payable directly from
31the pupil’s account within the fund.
   32Division III of the bill provides that moneys remaining in a
33pupil’s account upon the conclusion of the fiscal year shall
34remain in the pupil’s account within the education savings
35grant fund for the payment of qualified educational expenses in
-44-1future fiscal years or for higher education costs as authorized
2in the bill.
   3Under the division, for each pupil with a positive balance in
4the pupil’s account in the education savings grant fund upon
5graduation from high school or completion of an equivalent
6level of competent private instruction under Code chapter
7299A, the department of management is required to maintain the
8account in the fund until the pupil is 25 years old. Until
9the pupil is 25 years old, moneys in the pupil’s account may
10be used by the pupil for qualified higher education expenses,
11as defined in Code section 12D.1. Moneys in a pupil’s account
12when the pupil turns 25 years old are transferred by the
13department of management for deposit in the general fund of the
14state.
   15Division III of the bill provides that a person who makes a
16false claim for the purpose of obtaining an education savings
17grant or who knowingly receives the grant or makes a payment
18from an account within the education savings grant fund without
19being legally entitled to do so is guilty of a fraudulent
20practice and is subject to a criminal penalty. The bill allows
21the department of management to initiate legal proceedings to
22recover grants and amounts improperly awarded or paid from
23accounts under the bill.
   24Division III of the bill provides that an education savings
25grant received by a taxpayer is not taxable income for purposes
26of state individual income taxation. This provision of the
27bill applies to tax years beginning on or after January 1,
282020.
   29The section of Division III of the bill enacting Code section
30257.1A takes effect July 1, 2020. Division III of the bill
31applies to school budget years and fiscal years beginning on
32or after July 1, 2020.
   33Division IV of the bill provides that additional legislation
34is required to fully implement Division III of the bill
35and requires the director of the department of education to
-45-1prepare draft legislation for submission to the legislative
2services agency, as necessary, to implement the transition
3and elimination of authority and duties of the department of
4education pursuant to new Code section 257.1A and to implement
5the transition and elimination of authority and duties under
6other provisions of law.
-46-
md/jh