Senate File 159 - IntroducedA Bill ForAn Act 1relating to educational offerings and funding by
2establishing a student first scholarship program for certain
3pupils attending nonpublic schools, establishing a student
4first scholarship fund, providing an income tax exemption,
5modifying and establishing charter school programs,
6modifying provisions governing the state’s open enrollment
7law including voluntary diversity plans, modifying the
8tuition and textbook tax credit, providing for the educator
9expense deduction, modifying provisions related to education
10data collection and permissible education programs and
11funding, making appropriations, providing penalties, and
12including effective date, applicability, and retroactive
13applicability provisions.
14BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2STUDENT first scholarship PROGRAM
3   Section 1.  Section 256.9, Code 2021, is amended by adding
4the following new subsection:
5   NEW SUBSECTION.  63.  Adopt rules relating to the
6administration of and applications for the student first
7scholarship program pursuant to section 257.11B, including but
8not limited to application processing timelines and information
9required to be submitted by a parent or guardian.
10   Sec. 2.  NEW SECTION.  257.11B  Student first scholarship
11program.
   121.  a.  For the school budget year beginning July 1, 2022,
13and each succeeding school budget year, the following resident
14pupils who are attending a nonpublic school, as defined in
15section 285.16, shall be eligible to receive a student first
16scholarship in the manner provided in this section:
   17(1)  A pupil eligible to enroll in kindergarten who, if
18enrolled in the pupil’s district of residence, would attend
19a public school identified for comprehensive support and
20improvement under the federal Every Student Succeeds Act, Pub.
21L. No.114-95.
   22(2)  A pupil eligible to enroll in grade one through grade
23twelve if the pupil has attended a public school identified for
24comprehensive support and improvement under the federal Every
25Student Succeeds Act, Pub.L.No.114-95, for the equivalent
26of the two immediately preceding semesters for which the
27student first scholarship is requested and if the pupil is not
28otherwise ineligible under this section.
   29(3)  A pupil who received a student first scholarship for
30the immediately preceding school budget year, who is eligible
31to enroll in grade one through grade twelve, and who is not
32otherwise ineligible under this section.
   33b.  Student first scholarships shall be made available to
34parents and guardians in the manner authorized under subsection
354, paragraph “c”, for the payment of qualified educational
-1-1expenses as provided in this section.
   2c.  For purposes of this subsection, “resident” means the
3same as defined in section 282.1, subsection 2.
   42.  a.  (1)  By January 31 preceding the school year for
5which the student first scholarship is requested, the parent or
6guardian of the pupil requesting a student first scholarship
7shall submit an application to the department of education, on
8application forms developed by the department of education,
9indicating that the parent or guardian intends to enroll the
10pupil in a nonpublic school for the entirety of the school
11year.
   12(2)  In addition to such information deemed appropriate by
13the department of education, the application shall require
14certification from the nonpublic school of the pupil’s
15enrollment for the following school year.
   16b.  By March 1 preceding the school year for which the
17student first scholarship is requested, the department of
18education shall determine the number of pupils in each school
19district approved to receive a scholarship for the following
20school year and shall notify the parent or guardian of each
21pupil approved for the following school year to receive a
22scholarship and the amount of the scholarship for the pupil.
   23c.  Student first scholarships shall only be approved for
24one school year and applications must be submitted annually for
25student first scholarships in subsequent school years.
   263.  The department of education shall assign each pupil a
27student first scholarship in an amount equal to the sum of all
28the following for the same school budget year:
   29a.  The product of the pupil’s weighted enrollment that
30would otherwise be assigned to the pupil under this chapter if
31the pupil was enrolled in the pupil’s district of residence
32multiplied by the difference between eighty-seven and
33five-tenths percent of the regular program state cost per pupil
34and the statewide average foundation property tax per pupil.
   35b.  The total teacher salary supplement district cost per
-2-1pupil for the pupil’s district of residence.
   2c.  The total professional development supplement district
3cost per pupil for the pupil’s district of residence.
   4d.  The total early intervention supplement district cost per
5pupil for the pupil’s district of residence.
   6e.  The total area education agency teacher salary supplement
7district cost per pupil for the pupil’s district of residence.
   8f.  The total area education agency professional development
9supplement district cost per pupil for the pupil’s district of
10residence.
   11g.  The total teacher leadership supplement district cost per
12pupil for the pupil’s district of residence.
   134.  A student first scholarship fund is created in the
14state treasury under the control of the department of
15education consisting of moneys appropriated to the department
16of education for the purpose of providing student first
17scholarships under this section. For the fiscal year
18commencing July 1, 2022, and each succeeding fiscal year, there
19is appropriated from the general fund of the state to the
20department of education to be credited to the fund the amount
21necessary to pay all student first scholarships approved for
22that fiscal year. The director of the department of education
23has all powers necessary to carry out and effectuate the
24purposes, objectives, and provisions of this section pertaining
25to the fund, including the power to do all of the following:
   26a.  Make and enter into contracts necessary for the
27administration of the fund.
   28b.  Procure insurance against any loss in connection with the
29assets of the fund or require a surety bond.
   30c.  Contract with a private financial management firm to
31manage the fund, in collaboration with the treasurer of state,
32including providing for the disbursement of student first
33scholarships in the form of an electronic debit card or checks
34that are payable directly from the pupil’s account within the
35fund.
-3-
   1d.  Conduct audits or other reviews necessary to properly
2administer the program.
   3e.  Adopt rules for the administration of the fund and
4accounts within the fund.
   55.  a.  For each pupil approved for a student first
6scholarship, the department of education shall establish an
7account for that pupil in the student first scholarship fund.
8The amount of the pupil’s student first scholarship shall be
9deposited into the pupil’s account on July 1, and such amount
10shall be immediately available for the payment of qualified
11educational expenses incurred by the parent or guardian for
12the pupil during that fiscal year using the payment method
13authorized under subsection 4, paragraph “c”.
   14b.  A nonpublic school that accepts payment from a parent
15or guardian using funds from a pupil’s account in the student
16first scholarship fund shall not refund, rebate, or share any
17portion of such payment with the parent, guardian, or pupil.
   18c.  Moneys remaining in a pupil’s account upon conclusion
19of the fiscal year shall remain in the pupil’s account in the
20student first scholarship fund for the payment of qualified
21educational expenses in future fiscal years during which the
22pupil participates in the program or for the payment of higher
23education costs as provided under subsection 8.
   246.  a.  For purposes of this section, “qualified educational
25expenses”
includes tuition and fees at a nonpublic school,
26textbooks, fees or payments for educational therapies,
27including tutoring or cognitive skills training, curriculum
28fees and materials for a course of study for a specific subject
29matter or grade level, tuition or fees for nonpublic online
30education programs, tuition for vocational and life skills
31education approved by the department of education, education
32materials and services for pupils with disabilities, including
33the cost of paraprofessionals and assistants who are trained
34in accordance with state law, standardized test fees, advanced
35placement examinations or examinations related to postsecondary
-4-1education admission or credentialing, qualified education
2expenses, as defined in section 12D.1, excluding room and board
3expenses, and other expenses incurred by the parent or guardian
4that are directly related to the education of the pupil at a
5nonpublic school, including a nonpublic school accredited by
6an independent accrediting agency approved by the department
7of education.
   8b.  “Qualified educational expenses” does not include
9transportation costs for the pupil, the cost of food or
10refreshments consumed by the pupil, the cost of clothing for
11the pupil, or the cost of disposable materials, including
12but not limited to paper, notebooks, pencils, pens, and art
13supplies.
   147.  a.  A person who makes a false claim for the purpose
15of obtaining a student first scholarship provided for in this
16section or who knowingly receives the scholarship or makes a
17payment from an account within the student first scholarship
18fund without being legally entitled to do so is guilty of a
19fraudulent practice under chapter 714. The false claim for a
20student first scholarship or a payment from an account shall
21be disallowed. The department of education shall also close
22the pupil’s account in the student first scholarship fund and
23transfer any remaining moneys in the account for deposit in the
24general fund of the state. If the improperly obtained amounts
25from the scholarship have been disbursed from the applicable
26account in the student first scholarship fund, the department
27of education shall recover such amounts from the parent or
28guardian, or from the pupil for purposes of subsection 8,
29including by initiating legal proceedings to recover such
30amounts, if necessary. A parent or guardian, or a pupil for
31purposes of subsection 8, who commits a fraudulent practice
32under this section is prohibited from participating in the
33student first scholarship program in the future.
   34b.  If, prior to the end of the required attendance
35period of the school year, a pupil who receives a student
-5-1first scholarship withdraws from enrollment in the nonpublic
2school or is expelled, the nonpublic school shall notify the
3department of education in writing of the pupil’s withdrawal
4or expulsion, and the pupil’s parent or guardian shall notify
5the department of education of the pupil’s withdrawal or
6expulsion from the nonpublic school. A pupil’s expulsion
7from the nonpublic school prior to the end of the required
8attendance period for the school year shall invalidate the
9pupil’s eligibility for the student first scholarship for the
10school budget year. A pupil’s withdrawal from a nonpublic
11school prior to the end of the required attendance period of
12the school year shall invalidate the pupil’s eligibility for
13the student first scholarship for the school budget year unless
14the withdrawal is the result of a change in residence of the
15pupil and the pupil, following written notice by the parent
16or guardian and certification by the new nonpublic school to
17the department of education, enrolls in a different nonpublic
18school in this state for the remainder of the school year.
   19c.  (1)  Upon receipt of a notice of expulsion under
20paragraph “b”, the department of education shall close the
21pupil’s account in the student first scholarship fund and
22transfer any remaining moneys in the account for deposit in
23the general fund of the state. In addition, if amounts from
24the scholarship for the school budget year during which the
25pupil is expelled have been disbursed from the expelled pupil’s
26account in the student first scholarship fund, the department
27of education shall recover such amounts from the parent or
28guardian, including by initiating legal proceedings to recover
29such amounts, if necessary.
   30(2)  Upon receipt of a notice of withdrawal under paragraph
31“b” and a determination that the pupil’s withdrawal was not the
32result of a change in residence, the department of education
33shall cease disbursements of remaining moneys in the pupil’s
34account in the student first scholarship fund and maintain the
35pupil’s account if and until such time that the pupil uses the
-6-1funds for qualified education expenses under subsection 8. In
2addition, if amounts from the scholarship for the school budget
3year during which the withdrawal occurs have been disbursed
4from the pupil’s account in the student first scholarship fund,
5the department of education shall recover such amounts from the
6parent or guardian to the extent the amount disbursed exceeds
7the amount of the scholarship proportionate to the remaining
8portion of the school year following the withdrawal, including
9by initiating legal proceedings to recover such amounts, if
10necessary.
   11(3)  Upon receipt of a notice of withdrawal under paragraph
12“b” and a determination that the withdrawal was the result of
13a change in residence but that the pupil did not enroll in
14a different nonpublic school in this state for the remainder
15of the school year, the department of education shall cease
16disbursements of remaining moneys in the pupil’s account in
17the student first scholarship fund and maintain the pupil’s
18account if and until such time that the pupil uses the funds
19for qualified education expenses under subsection 8.
   20(4)  If a pupil’s eligibility is invalidated under the
21provisions of paragraph “b”, the pupil shall be ineligible for a
22student first scholarship for the following school budget year
23under subsection 1, paragraph “a”, subparagraphs (2) and (3).
   248.  a.  For each pupil with a positive balance in the pupil’s
25account in the student first scholarship fund upon graduation
26from high school, the department of education shall maintain
27the account in the fund until the pupil is twenty-three years
28of age. Following graduation from high school until the pupil
29is twenty-three years of age, moneys in the pupil’s account may
30be used for qualified education expenses, as defined in section
3112D.1, incurred by the pupil while attending an institution
32of higher education under the control of the state board of
33regents, a community college located in this state, or a
34private college or university located in this state. Payments
35from a pupil’s account for higher education costs shall be
-7-1made in the same manner as payments for qualified educational
2expenses under subsection 5. Moneys in a pupil’s account when
3the pupil turns twenty-three years of age shall be transferred
4by the department of education for deposit in the general fund
5of the state.
   6b.  Notwithstanding the age limitation in paragraph “a”, if
7the pupil with a positive balance in the pupil’s account in
8the student first scholarship fund upon graduation from high
9school serves on federal active duty, other than training, and
10is discharged under honorable conditions, the limitation date
11otherwise applicable under paragraph “a” shall be extended
12by one year for each year of federal active duty service by
13the pupil, but not to a date after the pupil’s twenty-seventh
14birthday.
   159.  a.  A parent may appeal to the state board of education
16any administrative decision the department of education
17makes pursuant to this section, including but not limited
18to determinations of eligibility, allowable expenses, and
19removal from the program. The department shall notify the
20parent or guardian in writing of the appeal process at the same
21time the department notifies the parent or guardian of the
22administrative decision. The state board of education shall
23establish the appeals process consistent with chapter 17A and
24shall post such appeal process information on the state board
25of education’s internet site.
   26b.  The state board of education may refer cases of
27substantial misuse of student first scholarship funds to the
28attorney general for the purpose of collection or for the
29purpose of a criminal investigation if the state board of
30education obtains evidence of fraudulent use of an account.
   3110.  This section shall not be construed to authorize the
32state or any political subdivision of the state to exercise
33authority over any nonpublic school or construed to require
34a nonpublic school to modify its academic standards for
35admission or educational program in order to receive payment
-8-1from a parent or guardian using funds from a pupil’s account
2in the student first scholarship fund. A nonpublic school
3that accepts payment from a parent or guardian using funds
4from a pupil’s account in the student first scholarship fund
5is not an agent of this state or of a political subdivision
6of this state. Rules adopted by the department of education
7to implement this section that impose an undue burden on a
8nonpublic school are invalid.
9   Sec. 3.  Section 422.7, Code 2021, is amended by adding the
10following new subsection:
11   NEW SUBSECTION.  51.  Subtract, to the extent included, the
12amount of a student first scholarship under section 257.11B
13received by the taxpayer for payment of qualified educational
14expenses.
15   Sec. 4.  APPLICABILITY.  The following applies to school
16budget years and fiscal years beginning on or after July 1,
172022:
   18The section of this division of this Act enacting section
19257.11B.
20   Sec. 5.  APPLICABILITY.  The following applies to tax years
21beginning on or after January 1, 2022:
   22The section of this division of this Act enacting section
23422.7, subsection 51.
24DIVISION II
25CHARTER SCHOOL PROGRAMS
26   Sec. 6.  NEW SECTION.  256E.1  Establishment of charter
27schools — purpose.
   281.  Charter schools shall be part of the state’s program of
29public education.
   302.  A charter school may be established by either of the
31following methods:
   32a.  A school board may create a founding group to apply
33to the state board for approval to establish and operate a
34charter school within and as a part of the school district by
35establishing a new attendance center, creating a new school
-9-1within an existing attendance center, or by converting an
2existing attendance center to charter status.
   3b.  A founding group may apply to the state board for
4approval to establish and operate a charter school within the
5boundaries of the state that operates as a new attendance
6center independently from a public school district.
   73.  The purpose of a charter school established pursuant to
8this chapter shall be to accomplish the following:
   9a.  Improve student learning, well-being, and postsecondary
10success.
   11b.  Increase learning opportunities for students in areas
12of need in this state, including but not limited to science,
13technology, engineering, and math (STEM), and science,
14technology, engineering, arts, and math (STEAM).
   15c.  Increase opportunities for work-based learning, early
16literacy intervention, and serving at-risk populations.
   17d.  Accelerating student learning to prevent learning loss
18during the COVID-19 pandemic and other significant disruptions
19to student learning.
   20e.  Encourage the use of evidence-based practices in
21innovative environments.
   22f.  Require the measurement and evaluation of program
23implementation and learning outcomes.
   24g.  Establish models of success for Iowa schools.
   25h.  Create new professional opportunities for teachers and
26other educators.
   27i.  Investigate and establish different organizational
28structures for schools to use to implement a multi-tiered
29system of supports for students.
   30j.  Allow greater flexibility to meet the education needs of
31a diverse student population and changing workforce needs.
   32k.  Allow for the flexible allocation of resources through
33implementation of specialized school budgets for the benefit
34of the schools served.
   35l.  Allow greater flexibility for districts and schools to
-10-1focus on closing gaps in student opportunity and achievement
2for all students from preschool through postsecondary
3preparation.
   44.  The state board of education shall be the only authorizer
5of charter schools under this chapter.
6   Sec. 7.  NEW SECTION.  256E.2  Definitions.
   7As used in this chapter, unless the context otherwise
8requires:
   91.  “Attendance center” means a school building that contains
10classrooms used for instructional purposes for elementary,
11middle, or secondary school students.
   122.  “Charter school” means a school established in accordance
13with this chapter.
   143.  “Department” means the department of education.
   154.  “Education service provider” means an education
16management organization, charter school management
17organization, or other person with whom a charter school
18contracts for educational program implementation or
19comprehensive management.
   205.  “Founding group” means a person, group of persons,
21or education service provider that develops and submits an
22application for a charter school to the state board under this
23chapter.
   246.  “Governing board” means the independent board of a
25charter school whose members are elected or selected pursuant
26to the charter school contract.
   277.  “School board” means a board of directors regularly
28elected by the registered voters of an accredited public school
29district.
   308.  “State board” means the state board of education.
31   Sec. 8.  NEW SECTION.  256E.3  Department — duty to monitor.
   32The department shall monitor the effectiveness of charter
33schools and shall implement the applicable provisions of this
34chapter.
35   Sec. 9.  NEW SECTION.  256E.4  School board-state board model.
-11-
   11.  A school board may create a founding group to apply
2to the state board for approval to establish and operate a
3charter school within and as a part of the school district by
4establishing a new attendance center, creating a new school
5within an existing attendance center, or by converting an
6existing attendance center. The application shall demonstrate
7the founding group’s academic and operational vision and plans
8for the proposed charter school, demonstrate the founding
9group’s capacity to execute the vision and plans, and provide
10the state board a clear basis for assessing the founding
11group’s plans and capacity.
   122.  The state board shall adopt rules to establish
13appropriate application timelines and deadlines for the
14submission of charter school applications under this section.
   153.  The instructions for completing an application shall
16include or otherwise inform applicants of all of the following:
   17a.  The performance framework adopted by the state board
18for charter school oversight and evaluation requirements in
19accordance with sections 256E.9 and 256E.10.
   20b.  The criteria the state board will use in evaluating
21applications.
   22c.  The requirements concerning the format and content
23essential for applicants to demonstrate the capacities
24necessary to establish and operate a successful charter school.
   254.  An application submitted under this section shall also
26include all of the following items related to the proposed
27charter school:
   28a.  An executive summary.
   29b.  The mission and vision of the proposed charter school,
30including identification of the targeted student population and
31the community the charter school intends to serve.
   32c.  The location of the proposed charter school or the
33proposed geographic area within the school district where the
34school is proposed to be located.
   35d.  Identification of the grades to be served each school
-12-1year during the duration of the charter school contract.
   2e.  Minimum, planned, and maximum enrollment per grade for
3each school year during the duration of the charter school
4contract.
   5f.  Evidence of need and community support for the proposed
6charter school.
   7g.  Background information on the members of the founding
8group and background information on the governing board,
9administration, and management personnel of the proposed
10charter school, if available.
   11h.  The charter school’s proposed operations calendar and
12sample daily schedule.
   13i.  A description of the academic program and identification
14of ways the program aligns with state academic standards.
   15j.  A description of the charter school’s instructional
16model, including the type of learning environment, class size
17and structure, curriculum overview, and teaching methods.
   18k.  The charter school’s plan for using internal and external
19assessments to measure and report student progress on the
20performance framework in accordance with section 256E.9.
   21l.  Plans for identifying and serving students with
22disabilities, students who are limited English proficient,
23students who are academically failing or below grade level, and
24gifted students, including but not limited to compliance with
25applicable laws and regulations.
   26m.  A description of cocurricular and extracurricular
27programs and how the programs will be funded and delivered.
   28n.  Plans and timelines for student recruitment, enrollment,
29and transfers, including enrollment preferences and procedures
30for conducting transparent admissions selections, including
31admissions lotteries.
   32o.  The proposed code of student conduct, including
33applicable procedures and disciplinary sanctions for both
34general students and special education students.
   35p.  A chart or description of the charter school’s
-13-1organizational structure and the duties and powers of each
2position or group, including the delineation of authority and
3reporting between the governing board, administration, staff,
4and any related bodies or external organizations that have a
5role in managing the charter school.
   6q.  A staffing chart for the charter school’s first year
7and a staffing plan for the duration of the charter school
8contract.
   9r.  Plans for recruiting and developing school
10administrators, staff, and governing board members and the
11charter school’s employment policies, including performance
12evaluation plans.
   13s.  Proposed governing bylaws for the charter school.
   14t.  Identification and explanation of any partnerships or
15contractual relationships with the founding group or any of the
16founding group or school board’s members that are related to
17the charter school’s operations or mission.
   18u.  The charter school’s plans for providing transportation
19services, food service, and all other operational or ancillary
20services.
   21v.  Proposed opportunities and expectations for parent
22involvement.
   23w.  A detailed school start-up plan and five-year plan,
24including all relevant assumptions used, identifying timelines
25for charter school finances, budget, and insurance coverage,
26facility construction, preparation, and contingencies, and the
27identification of persons or positions responsible for each
28such item.
   29x.  Evidence of anticipated fundraising contributions, if
30any.
   31y.  Evidence of the founding group’s success in serving
32student populations similar to that which is proposed in the
33application and if the founding group operates other charter
34schools, evidence of past performance of such other charter
35schools and evidence of the founding group’s capacity for an
-14-1additional charter school.
   2z.  A description of the charter school governing board’s
3performance evaluation measures, compensation structure,
4methods of contract oversight and dispute resolution,
5investment disclosures and conflicts of interest.
   6aa.  A proposed duration and outline of the charter school
7contract, including designation of roles, authority, and duties
8of the governing board and the charter school staff.
   95.  If the founding group proposes to establish a charter
10school by converting an existing attendance center of the
11school district, the state board shall not approve the
12application unless the founding group submits evidence that
13the attendance center’s teachers and parents or guardians of
14students enrolled at the existing attendance center voted in
15favor of the conversion. A vote in favor of conversion under
16this subsection requires the support of a majority of the
17teachers employed at the school on the date of the vote and
18a majority of the parents or guardians voting whose children
19are enrolled at the school, provided that a majority of the
20parents or guardians eligible to vote participate in the ballot
21process. The state board shall establish procedures by rule
22for voting under this subsection. A parent or guardian voting
23in accordance with this subsection must be a resident of this
24state.
   256.  In reviewing and evaluating charter school applications,
26the state board shall employ procedures, practices, and
27criteria consistent with nationally recognized principles and
28standards for reviewing charter school applications. Each
29application review shall include thorough evaluation of the
30written application, an in-person interview with the founding
31group, and an opportunity in a public forum for local residents
32to learn about and provide input on each application.
   337.  Following review of a charter school application and
34completion of the process required under subsection 6, the
35state board shall do all of the following:
-15-
   1a.  Approve a charter school application only if the founding
2group has demonstrated competence in each element of the
3approval criteria and if the founding group is likely to open
4and operate a successful charter school.
   5b.  Make application decisions on documented evidence
6collected through the application review process.
   7c.  Adhere to the policies and criteria that are transparent,
8based on merit, and avoid conflicts of interest or any
9appearance thereof.
   108.  The state board shall approve a charter school
11application if the application satisfies the requirements of
12this chapter. The state board shall approve or deny a charter
13school application no later than seventy-five calendar days
14after the application is received. If the state board denies
15an application, the state board shall provide notice of denial
16to the founding group in writing within thirty days after the
17state board’s action. The notice shall specify the exact
18reasons for denial and provide documentation supporting those
19reasons. An approval decision may include, if appropriate,
20reasonable conditions that the founding group must meet before
21a charter school contract may be executed pursuant to section
22256E.6. An approved charter application shall not serve as a
23charter school contract.
   249.  A decision of the state board relating to an application
25under this section is not appealable.
   2610.  An unsuccessful applicant under this section may
27subsequently reapply to the state board.
28   Sec. 10.  NEW SECTION.  256E.5  Founding group-state board
29model.
   301.  A founding group may apply to the state board for
31approval to establish and operate a charter school within the
32boundaries of the state that operates as a new attendance
33center independently from a public school district. The
34application shall demonstrate the founding group’s academic
35and operational vision and plans for the proposed charter
-16-1school, demonstrate the founding group’s capacity to execute
2the vision and plans, and provide the state board a clear basis
3for assessing the founding group’s plans and capacity.
   42.  The state board shall adopt rules to establish
5appropriate application timelines and deadlines for the
6submission of charter school applications under this section.
   73.  The instructions for completing an application shall
8include or otherwise inform applicants of all of the following:
   9a.  The performance framework adopted by the state board
10for charter school oversight and evaluation requirements in
11accordance with sections 256E.9 and 256E.10.
   12b.  The criteria the state board will use in evaluating
13applications.
   14c.  The requirements concerning the format and content
15essential for applicants to demonstrate the capacities
16necessary to establish and operate a successful charter school.
   174.  The applications submitted under this section shall also
18include all of the following items related to the proposed
19charter school:
   20a.  An executive summary.
   21b.  The mission and vision of the proposed charter school,
22including identification of the targeted student population and
23the community the school intends to serve.
   24c.  The location of the proposed charter school or the
25proposed geographic area within the state where the school is
26proposed to be located.
   27d.  Identification of the grades to be served each school
28year during the duration of the charter school contract.
   29e.  Minimum, planned, and maximum enrollment per grade for
30each school year during the duration of the charter school
31contract.
   32f.  Evidence of need and community support for the proposed
33charter school.
   34g.  Background information on the members of the founding
35group and background information on the governing board,
-17-1administration, and management personnel of the proposed
2charter school, if available.
   3h.  The charter school’s proposed operations calendar and
4sample daily schedule.
   5i.  A description of the academic program and identification
6of ways the program aligns with state academic standards.
   7j.  A description of the charter school’s instructional
8model, including the type of learning environment, class size
9and structure, curriculum overview, and teaching methods.
   10k.  The charter school’s plan for using internal and external
11assessments to measure and report student progress on the
12performance framework in accordance with section 256E.9.
   13l.  Plans for identifying and serving students with
14disabilities, students who are limited English proficient,
15students who are academically failing or below grade level, and
16gifted students, including but not limited to compliance with
17applicable laws and regulations.
   18m.  A description of cocurricular and extracurricular
19programs and how the programs will be funded and delivered.
   20n.  Plans and timelines for student recruitment, enrollment,
21and transfers, including enrollment preferences and procedures
22for conducting transparent admissions selections, including
23admissions lotteries.
   24o.  The proposed code of student conduct, including
25applicable procedures and disciplinary sanctions for both
26general students and special education students.
   27p.  A chart or description of the charter school’s
28organizational structure and the duties and powers of each
29position or group, including the delineation of authority and
30reporting between the governing board, staff, and any related
31bodies or external organizations that have a role in managing
32the charter school.
   33q.  A staffing chart for the charter school’s first year
34and a staffing plan for the duration of the charter school
35contract.
-18-
   1r.  Plans for recruiting and developing school
2administrators, staff, and governing board members and the
3charter school’s employment policies, including performance
4evaluation plans.
   5s.  Proposed governing bylaws for the charter school.
   6t.  Identification and explanation of any partnerships or
7contractual relationships with an education service provider
8that are related to the charter school’s operations or mission.
   9u.  The charter school’s plans for providing transportation
10services, food service, and all other operational or ancillary
11services.
   12v.  Proposed opportunities and expectations for parent
13involvement.
   14w.  A detailed school start-up plan and five-year plan,
15including all relevant assumptions used, identifying timelines
16for charter school finances, budget, and insurance coverage,
17facility construction, preparation, and contingencies, and the
18identification of persons or positions responsible for each
19such item.
   20x.  Evidence of anticipated fundraising contributions, if
21any.
   22y.  If the application includes a proposal that the governing
23board contracts with an education service provider, evidence
24of the education service provider’s success in serving
25student populations similar to that which is proposed in the
26application and if the education service provider operates
27other charter schools, evidence of past performance of such
28other charter schools and evidence of the education service
29provider’s capacity for growth.
   30z.  If the application includes a proposal that the
31governing board contracts with an education service provider,
32a description of the education service provider’s performance
33evaluation measures, compensation structure, methods of
34contract oversight and dispute resolution, investment
35disclosures and conflicts of interest.
-19-
   1aa.  A proposed duration and outline of the charter school
2contract, including designation of roles, authority, and duties
3of the governing board and the charter school staff.
   45.  In reviewing and evaluating charter school applications,
5the state board shall employ procedures, practices, and
6criteria consistent with nationally recognized principles and
7standards for reviewing charter school applications. Each
8application review shall include thorough evaluation of the
9written application, an in-person interview with the applicant,
10and an opportunity in a public forum for local residents of the
11public school district within which the applicant proposes to
12locate the charter school to learn about and provide input on
13each application.
   146.  Following review of a charter school application and
15completion of the process required under subsection 5, the
16state board shall do all of the following:
   17a.  Approve a charter school application only if the
18applicant has demonstrated competence in each element of the
19state board’s published approval criteria and the applicant is
20likely to open and operate a successful charter school.
   21b.  Make application decisions on documented evidence
22collected through the application review process.
   23c.  Adhere to the policies and criteria that are transparent,
24based on merit, and avoid conflicts of interest or any
25appearance thereof.
   267.  A charter school application under this section shall
27not be approved if the founding group has another pending
28application under this section.
   298.  The state board shall approve a charter school
30application if the application satisfies the requirements
31of this chapter. The state board shall approve or deny a
32charter school application no later than seventy-five calendar
33days after the application is received. If the state board
34denies an application, the state board shall provide notice of
35denial to the applicant in writing within thirty days after
-20-1board action. The notice shall specify the exact reasons for
2denial and provide documentation supporting those reasons.
3An approval decision may include, if appropriate, reasonable
4conditions that the applicant must meet before a charter
5school contract may be executed pursuant to section 256E.6.
6An approved charter application shall not serve as a charter
7school contract.
   89.  An unsuccessful charter school applicant may
9subsequently reapply to the state board.
   1010.  A decision of the state board relating to an application
11under this section is not appealable.
12   Sec. 11.  NEW SECTION.  256E.6  Charter school contract.
   131.  Within the later of thirty days following approval of
14a charter school application or upon the satisfaction of all
15reasonable conditions imposed on the applicant in the charter
16school approval, if any, an enforceable and renewable charter
17school contract shall be executed between the founding group
18and the state board setting forth the academic and operational
19performance expectations and measures by which the charter
20school will be evaluated pursuant to sections 256E.9 and
21256E.10 and the other rights and duties of the parties.
   222.  An initial charter school contract shall be granted for
23a term of ten school budget years. The charter school contract
24shall include the beginning and ending dates of the charter
25school contract term. An approved charter school may delay its
26opening for a period of time not to exceed one school year in
27order to plan and prepare for the charter school’s opening. If
28the charter school requires an opening delay of more than one
29school year, the charter school may request an extension from
30the state board.
   313.  Each charter school contract shall be signed by the
32president of the state board and the president or appropriate
33officer of the governing body of the founding group.
   344.  Within fifteen days of the execution of a charter school
35contract entered into by the state board, the state board shall
-21-1notify the department and the department of management of the
2name of the charter school and any applicable education service
3provider, the proposed location of the charter school, and the
4charter school’s first year projected enrollment.
   55.  A charter school approved under this chapter shall not
6commence operations without a valid charter school contract
7executed in accordance with this section and approved in an
8open session of the state board.
   96.  The contract may provide for requirements or conditions
10to govern and monitor the start-up progress of an approved
11charter school prior to the opening of the charter school
12including but not limited to conditions to ensure that the
13charter school meets all building, health, safety, insurance,
14and other legal requirements.
   157.  A charter school contract may be amended to govern
16multiple charter schools operated by the same applicant and
17approved by the state board. However, each charter school
18that is part of a charter school contract shall be separate
19and distinct from any other charter school governed by the
20contract.
21   Sec. 12.  NEW SECTION.  256E.7  General operating powers and
22duties.
   231.  In order to fulfill the charter school’s public purpose,
24a charter school established under this chapter shall be
25organized as a nonprofit education organization and shall
26have all the powers necessary for carrying out the terms of
27the charter school contract including but not limited to the
28following, as applicable:
   29a.  Receive and expend funds for charter school purposes.
   30b.  Secure appropriate insurance and enter into contracts and
31leases.
   32c.  Contract with an education service provider for the
33management and operation of the charter school so long as the
34governing board retains oversight authority over the charter
35school.
-22-
   1d.  Incur debt in anticipation of the receipt of public or
2private funds.
   3e.  Pledge, assign, or encumber the charter school’s assets
4to be used as collateral for loans or extensions of credit.
   5f.  Solicit and accept gifts or grants for charter school
6purposes unless otherwise prohibited by law or by the terms of
7its charter school contract.
   8g.  Acquire from public or private sources real property for
9use as a charter school or a facility directly related to the
10operations of the charter school.
   11h.  Sue and be sued in the charter school’s own name.
   12i.  Operate an education program that may be offered by any
13noncharter public school or school district.
   142.  A charter school established under this chapter is
15exempt from all state statutes and rules and any local rule,
16regulation, or policy, applicable to a noncharter school,
17except that the charter school shall do all of the following:
   18a.  Meet all applicable federal, state, and local health and
19safety requirements and laws prohibiting discrimination on the
20basis of race, creed, color, sex, sexual orientation, gender
21identity, national origin, religion, ancestry, or disability.
22If approved under section 256E.4, the charter school shall be
23subject to any court-ordered desegregation in effect for the
24school district at the time the charter school application is
25approved, unless otherwise specifically provided for in the
26desegregation order.
   27b.  Operate as a nonsectarian, nonreligious school.
   28c.  Be free of tuition and application fees to Iowa resident
29students between the ages of five and twenty-one years.
   30d.  Be subject to and comply with chapters 216 and 216A
31relating to civil and human rights.
   32e.  Provide special education services in accordance with
33chapter 256B.
   34f.  Be subject to the same financial audits, audit
35procedures, and audit requirements as a school district. The
-23-1audit shall be consistent with the requirements of sections
211.6, 11.14, 11.19, and 279.29, and section 256.9, subsection
320, except to the extent deviations are necessary because
4of the program at the school. The department, the auditor
5of state, or the legislative services agency may conduct
6financial, program, or compliance audits.
   7g.  Be subject to and comply with the provisions of chapter
8285 relating to the transportation of students.
   9h.  Be subject to and comply with the requirements of section
10256.7, subsection 21, and the educational standards of section
11256.11, unless specifically waived by the state board during
12the application process.
   13i.  Provide instruction for at least the number of days
14or hours required by section 279.10, subsection 1, unless
15specifically waived by the state board as part of the
16application process.
   17j.  Comply with the requirements of this chapter.
   183.  A charter school shall employ or contract with teachers
19as defined in section 272.1, who hold valid licenses with an
20endorsement for the type of instruction or service for which
21the teachers are employed or under contract.
   224.  A charter school shall not discriminate in its student
23admissions policies or practices on the basis of intellectual
24or athletic ability, measures of achievement or aptitude, or
25status as a person with a disability. However, a charter
26school may limit admission to students who are within a
27particular range of ages or grade levels or on any other
28basis that would be legal if initiated by a school district.
29Enrollment priority shall be given to the siblings of students
30enrolled in a charter school.
   315.  A charter school shall enroll an eligible student who
32submits a timely application unless the number of applications
33exceeds the capacity of a program, class, grade level, or
34building. In this case, students must be accepted by lot.
35Upon enrollment of an eligible student, the charter school
-24-1shall notify the public school district of residence not later
2than March 1 of the preceding school year.
   36.  Each charter school governing board shall be required to
4adopt a conflict of interest policy and a code of ethics for
5all board members and employees.
   67.  Each charter school governing board shall adopt a policy
7regarding the hiring of family members to avoid nepotism in
8hiring and supervision. The policy shall include but is not
9limited to a disclosure to the governing board of potential
10nepotism in hiring and supervision. Any person subject to the
11policy with a conflict shall not be involved in the hiring
12decision or supervision of a potential employee.
   138.  Individuals compensated by an education service provider
14are prohibited from serving as a voting member on the governing
15board of any charter school unless the state board waives such
16prohibition.
   179.  If the charter school is operated by an education service
18provider, the governing board of the charter school shall have
19access to all records of the education service provider that
20are necessary to evaluate any provision of the contract or
21evaluate the education service provider’s performance under the
22contract.
23   Sec. 13.  NEW SECTION.  256E.8  Funding.
   241.  Each student enrolled in a charter school established
25under this chapter shall be counted, for state school
26foundation purposes, in the student’s district of residence
27pursuant to section 257.6, subsection 1, paragraph “a”,
28subparagraph (9). For purposes of this section, residence
29means a residence under section 282.1.
   302.   The school district of residence shall pay to the
31charter school in which the student is enrolled in the manner
32required under section 282.18, subsection 7, and pursuant to
33the timeline in section 282.20, subsection 3, an amount equal
34to the sum of the state cost per pupil for the previous school
35year plus the teacher leadership supplement state cost per
-25-1pupil for the previous fiscal year as provided in section 257.9
2plus any moneys received for the pupil as a result of the
3non-English speaking weighting under section 280.4, subsection
43, for the previous school year multiplied by the state cost
5per pupil for the previous year. If a student is an eligible
6pupil under section 261E.6, the charter school shall pay the
7tuition reimbursement amount to an eligible postsecondary
8institution as provided in section 261E.7.
   93.  If necessary, and pursuant to rules adopted by the state
10board, funding amounts required under this section for the
11first school year of a new charter school shall be based on
12enrollment estimates for the charter school included in the
13charter school contract. Initial amounts paid using estimated
14enrollments shall be reconciled during the subsequent payment
15based on actual enrollment of the charter school during the
16first school year.
   174.  The department shall disburse state transportation
18funding to a public charter school on the same basis and in the
19same manner as such funding is paid to school districts.
20   Sec. 14.  NEW SECTION.  256E.9  Performance framework.
   211.  The performance provisions within the charter school
22contract shall be based on a performance framework adopted
23by the state board that clearly sets forth the academic and
24operational performance indicators, measures, and metrics that
25will guide the evaluation of the charter school by the state
26board, without compromising individual student privacy. The
27performance framework shall include but is not limited to
28indicators, measures, and metrics for all of the following:
   29a.  Student academic proficiency.
   30b.  Student academic growth.
   31c.  Achievement gaps in both proficiency and growth between
32specified populations or groups of students, including groups
33based on gender, race, poverty, special education status,
34limited English proficiency, and gifted status.
   35d.  Attendance.
-26-
   1e.  Enrollment attrition.
   2f.  Postsecondary readiness for students in grades nine
3through twelve.
   4g.  Goals specified in the charter school’s mission.
   5h.  Financial performance and sustainability.
   6i.  Governing board performance and stewardship, including
7compliance with all applicable laws, regulations, and terms of
8the charter contract.
   92.  Annual performance targets shall be agreed upon between
10each charter school and the state board. Such performance
11targets shall be contained in the charter school contract and
12shall be designed to help each charter school meet applicable
13federal, state, and local standards. The performance targets
14contained in the charter school contract may be amended by
15mutual agreement after the charter school is operating and has
16collected initial achievement data for the charter school’s
17students.
   183.  The state board is responsible for collecting,
19analyzing, and reporting all data from state assessments and
20other state data sources in accordance with the performance
21framework. However, all efforts shall be made by all
22parties to the charter school contract to eliminate or reduce
23duplicative data reporting requirements.
   244.  Multiple charter schools operating under a single
25charter school contract shall be required to report their
26performance data as separate, individual schools, with each
27charter school held independently accountable for performance.
   285.  Each charter school established under this chapter
29shall be evaluated and graded by the department pursuant to
30the attendance center performance ranking system developed and
31adopted by the department.
32   Sec. 15.  NEW SECTION.  256E.10  Oversight — corrective
33action — contract renewal — revocation.
   341.  The state board shall monitor the performance and
35compliance of each charter school the state board approves,
-27-1including collecting and analyzing data according to the
2charter school contract in order to meet the requirements
3of this chapter. Such oversight may include inquiries and
4investigation of the charter school so long as the activities
5are consistent with the intent of this chapter, adhere to the
6terms of the charter school contract, and do not unduly inhibit
7the autonomy granted to the charter school. Any performance
8report resulting from an inquiry or investigation under this
9section shall, upon conclusion of such action, be included in
10the annual report required under section 256E.12.
   112.  As part of the charter school contract, the charter
12school may be required to submit an annual report to assist the
13state board in evaluating the charter school’s performance and
14compliance with the performance framework.
   153.  If a charter school’s performance under the charter
16school contract or compliance with applicable laws or rules is
17unsatisfactory, the state board shall notify the charter school
18of the perceived problem and provide reasonable opportunity for
19the school to remedy the problem, unless the problem warrants
20revocation, in which case the revocation provisions of this
21section apply.
   224.  The state board may take appropriate corrective actions
23or impose sanctions, other than revocation, in response to
24deficiencies in the charter school’s performance or compliance
25with applicable laws and rules. Such actions or sanctions may
26include requiring the charter school to develop and execute a
27corrective action plan within a specified time period.
   285.  A charter school contract may be renewed for periods of
29time not to exceed an additional ten years.
   306.  Annually, by June 30, the state board shall issue a
31charter school performance report and charter school contract
32renewal application guidance to each charter school whose
33charter school contract will expire during the following school
34budget year. The performance report shall summarize the
35charter school’s performance record to date based on the data
-28-1required by the charter school contract and by this chapter
2and shall identify concerns that may jeopardize renewal of the
3charter school contract if not remedied. The charter school
4shall have sixty days to respond to the performance report and
5submit any corrections or clarifications for the report.
   67.  The renewal application guidance shall, at a minimum,
7include the criteria that will be used when assessing charter
8school contract renewal decisions and provide an opportunity
9for the charter school to:
   10a.  Present additional evidence, beyond the data contained in
11the performance report.
   12b.  Describe improvements undertaken or planned for the
13charter school.
   14c.  Describe the charter school’s plans, including any
15proposed modifications, for the next charter school contract
16term.
   178.  No later than October 1, the governing board of a charter
18school seeking renewal shall submit a renewal application to
19the state board pursuant to the renewal application guidance.
20A renewal or denial shall be approved by resolution of the
21state board within sixty days following the filing of the
22renewal application.
   239.  Unless eligible for expedited renewal under subsection
2413, when reviewing a charter school contract renewal
25application, the state board shall do all of the following:
   26a.  Use evidence of the school’s performance over the term of
27the charter school contract in accordance with the applicable
28performance framework.
   29b.  Ensure that data used in making renewal decisions is
30available to the charter school and the public.
   31c.  Provide a report summarizing the evidence that served as
32a basis for the decision.
   3310.  A charter school contract may be revoked at any time
34or not renewed if the state board determines that the charter
35school did any of the following:
-29-
   1a.  Committed a material violation of any of the terms,
2conditions, standards, or procedures required under the charter
3school contract or this chapter.
   4b.  Failed to meet or make sufficient progress toward the
5performance expectations set forth in the charter school
6contract.
   7c.  Failed to meet generally accepted standards of fiscal
8management.
   9d.  Violated a provision of law from which the charter school
10was not exempted.
   1111.  The state board shall develop charter school contract
12revocation and nonrenewal standards and procedures that do all
13of the following:
   14a.  Provide the charter school with a timely notice of the
15possibility of revocation or nonrenewal and of the reasons
16therefor.
   17b.  Allow the charter school a reasonable period of time in
18which to prepare a response to any notice received.
   19c.  Provide the charter school an opportunity to submit
20documents and give testimony challenging the decision to revoke
21the charter school contract or the decision to not renew the
22contract.
   23d.  Allow the charter school the opportunity to hire legal
24representation and to call witnesses.
   25e.  Permit the audio or video recording of such proceedings
26described in paragraphs “c” and “d”.
   27f.  Require a final decision to be conveyed in writing to the
28charter school.
   2912.  A decision to revoke or to not renew a charter school
30contract shall be by resolution of the state board and shall
31clearly state the reasons for the revocation or nonrenewal.
   3213.  If a charter school has been evaluated and graded to
33be in the exceptional category, or the highest rated category
34under a succeeding evaluation system, under the evaluation and
35grading required under section 256E.9, subsection 5, for the
-30-1immediately preceding two school years, and the charter school
2is in compliance with the current charter school contract
3and all provisions of this chapter, the charter school’s
4application renewal under subsection 8 shall be renewed for an
5additional period of time equal to the length of the original
6charter school contract or the most recent renewal of the
7contract, whichever is longer, unless the state board provides
8written notice to the charter school of the state board’s
9rejection of the expedited renewal within sixty days of the
10filing of the application. The state board shall not reject
11an expedited renewal application unless the state board finds
12exceptional circumstances for the rejection or seeks material
13changes to the charter school contract.
14   Sec. 16.  NEW SECTION.  256E.11  Procedures for charter school
15closure — student enrollment.
   161.  Prior to any charter school closure decision, the state
17board shall develop a charter school closure protocol to ensure
18timely notice to parents and guardians, provide for the orderly
19transition of students and student records to new schools, and
20to provide proper disposition of school funds, property, and
21assets in accordance with the requirements of this chapter.
22The protocol shall specify required actions and timelines and
23identify responsible parties for each such action.
   242.  In the event of a charter school closure, the assets of
25the charter school shall be used first to satisfy outstanding
26payroll obligations for employees of the school, then to
27creditors of the school, then to the public school district in
28which the charter school operated, if applicable, and then to
29the state general fund. If the assets of the charter school
30are insufficient to pay all obligations of the charter school,
31the prioritization of the distribution of assets shall be
32consistent with this subsection and otherwise determined by the
33district court.
34   Sec. 17.  NEW SECTION.  256E.12  Reports.
   351.  Each charter school shall prepare and file an annual
-31-1report with the department. The department shall prescribe
2by rule the required contents of the report, but each such
3report shall include information regarding student achievement,
4including annual academic growth and proficiency, graduation
5rates, and financial performance and sustainability. The
6reports are public records and the examination, publication,
7and dissemination of the reports are governed by the provisions
8of chapter 22.
   92.  The state board shall prepare and file with the general
10assembly by December 1, annually, a comprehensive report with
11findings and recommendations relating to the charter school
12program in the state and whether the charter school program
13under this chapter is meeting the goals and purposes of the
14program. The report also shall contain, for each charter
15school, a copy of the charter school’s mission statement,
16attendance statistics and dropout rate, aggregate assessment
17test scores, projections of financial stability, and the number
18and qualifications of teachers and administrators.
19   Sec. 18.  Section 256F.3, Code 2021, is amended by adding the
20following new subsection:
21   NEW SUBSECTION.  8A.  The state board shall not approve a new
22charter school under this chapter on or after July 1, 2021.
23   Sec. 19.  NEW SECTION.  256F.12  Operation of existing charter
24schools.
   25Charter schools established under this chapter prior to July
261, 2021, shall continue to operate under and be subject to
27the requirements of this chapter and shall not be subject to
28chapter 256E.
29   Sec. 20.  Section 257.6, subsection 1, paragraph a, Code
302021, is amended by adding the following new subparagraph:
31   NEW SUBPARAGRAPH.  (9)  Resident pupils enrolled in a charter
32school under chapter 256E or 256F.
33   Sec. 21.  Section 257.31, subsection 5, paragraph d, Code
342021, is amended to read as follows:
   35d.  The closing of a nonpublic school, wholly or in part, or
-32-1the opening or closing of a pilot charter school.
2   Sec. 22.  Section 282.9, subsection 1, Code 2021, is amended
3to read as follows:
   41.  Notwithstanding sections 275.55A, 256E.7, 256F.4,
 5275.55A, and 282.18, or any other provision to the contrary,
6prior to knowingly enrolling an individual who is required
7to register as a sex offender under chapter 692A, but who is
8otherwise eligible to enroll in a public school, the board of
9directors of a school district shall determine the educational
10placement of the individual. Upon receipt of notice that a
11student who is enrolled in the district is required to register
12as a sex offender under chapter 692A, the board shall determine
13the educational placement of the student. The tentative agenda
14for the meeting of the board of directors at which the board
15will consider such enrollment or educational placement shall
16specifically state that the board is considering the enrollment
17or educational placement of an individual who is required
18to register as a sex offender under chapter 692A. If the
19individual is denied enrollment in a school district under this
20section, the school district of residence shall provide the
21individual with educational services in an alternative setting.
22   Sec. 23.  Section 282.18, subsection 4, paragraph b, Code
232021, is amended to read as follows:
   24b.  For purposes of this section, “good cause” means a change
25in a child’s residence due to a change in family residence, a
26change in the state in which the family residence is located,
27a change in a child’s parents’ marital status, a guardianship
28or custody proceeding, placement in foster care, adoption,
29participation in a foreign exchange program, or participation
30in a substance abuse or mental health treatment program, a
31change in the status of a child’s resident district such as
32removal of accreditation by the state board, surrender of
33accreditation, or permanent closure of a nonpublic school,
34revocation of a charter school contract as provided in section
 35256E.10 or 256F.8, the failure of negotiations for a whole
-33-1grade sharing, reorganization, dissolution agreement or the
2rejection of a current whole grade sharing agreement, or
3reorganization plan. If the good cause relates to a change
4in status of a child’s school district of residence, however,
5action by a parent or guardian must be taken to file the
6notification within forty-five days of the last board action
7or within thirty days of the certification of the election,
8whichever is applicable to the circumstances.
9DIVISION III
10VOLUNTARY DIVERSITY PLANS
11   Sec. 24.  Section 256F.4, subsection 2, paragraph a,
12unnumbered paragraph 1, Code 2021, is amended to read as
13follows:
   14Meet all applicable federal, state, and local health and
15safety requirements and laws prohibiting discrimination on the
16basis of race, creed, color, sex, sexual orientation, gender
17identity, national origin, religion, ancestry, or disability.
18A charter school or innovation zone school shall be under this
19chapter located within the boundaries of a school district

20 subject to any court-ordered desegregation plan in effect
21for the school district
at the time the charter school or
22innovation zone school application is approved shall be subject
23to the desegregation order unless otherwise specifically
24provided for in the desegregation order
.
25   Sec. 25.  Section 282.18, subsections 3 and 6, Code 2021, are
26amended to read as follows:
   273.  a.  The superintendent of a district subject to a
28voluntary diversity or
court-ordered desegregation plan, as
29recognized by rule of the state board of education,
may deny a
30request for transfer under this section if the superintendent
31finds that enrollment or release of a pupil will adversely
32affect the district’s implementation of the desegregation
33order or diversity plan, unless the transfer is requested
34by a pupil whose sibling is already participating in open
35enrollment to another district, or unless the request for
-34-1transfer is submitted to the district in a timely manner as
2required under subsection 2 prior to implementation of the
3adoption of a desegregation plan order by the district. If a
4transfer request would facilitate implementation of a voluntary
5diversity or court-ordered
desegregation plan order, the
6district shall give priority to granting the request over other
7requests.
   8b.  A parent or guardian, whose request has been denied
9because of the district’s implementation of a the desegregation
10order or diversity plan, may appeal the decision of the
11superintendent to the board of the district in which the
12request was denied. The board may either uphold or overturn
13the superintendent’s decision. A decision of the board
14to uphold the denial of the request is subject to appeal
15to the district court in the county in which the primary
16business office of the district is located. The state board
17of education shall adopt rules establishing definitions,
18guidelines, and a review process for school districts that
19adopt voluntary diversity plans. The guidelines shall include
20criteria and standards that school districts must follow
21when developing a voluntary diversity plan. The department
22of education shall provide technical assistance to a school
23district that is seeking to adopt a voluntary diversity plan.
24A school district implementing a voluntary diversity plan prior
25to July 1, 2008, shall have until July 1, 2009, to comply with
26guidelines adopted by the state board pursuant to this section.

   27c.  The board of directors of a school district subject
28to voluntary diversity or court-ordered desegregation shall
29develop a policy for implementation of open enrollment in
30the district. The policy shall contain objective criteria
31for determining when a request would adversely impact the
32desegregation order or voluntary diversity plan and criteria
33for prioritizing requests that do not have an adverse impact on
34the order or plan.
   356.  A request under this section is for a period of not less
-35-1than one year. If the request is for more than one year and
2the parent or guardian desires to have the pupil enroll in a
3different district, the parent or guardian may petition the
4current receiving district by March 1 of the previous school
5year for permission to enroll the pupil in a different district
6for a period of not less than one year. Upon receipt of such a
7request, the current receiving district board may act on the
8request to transfer to the other school district at the next
9regularly scheduled board meeting after the receipt of the
10request. The new receiving district shall enroll the pupil in
11a school in the district unless there is insufficient classroom
12space in the district or unless the district is subject to
13court-ordered desegregation and
enrollment of the pupil would
14adversely affect the court-ordered or voluntary implementation
15of the
desegregation plan of the district order. A denial of
16a request to change district enrollment within the approved
17period is not subject to appeal. However, a pupil who has been
18in attendance in another district under this section may return
19to the district of residence and enroll at any time, once the
20parent or guardian has notified the district of residence and
21the receiving district in writing of the decision to enroll the
22pupil in the district of residence.
23DIVISION IV
24EDUCATION INFORMATION, PROGRAM STANDARDS, AND FUNDING
25   Sec. 26.  Section 22.7, subsection 1, Code 2021, is amended
26to read as follows:
   271.  Personal information in records regarding a student,
28prospective student, or former student maintained, created,
29collected or assembled by or for a school corporation or
30educational institution maintaining such records. This
31subsection shall not be construed to prohibit a postsecondary
32education institution from disclosing to a parent or guardian
33information regarding a violation of a federal, state, or
34local law, or institutional rule or policy governing the use
35or possession of alcohol or a controlled substance if the
-36-1child is under the age of twenty-one years and the institution
2determines that the student committed a disciplinary violation
3with respect to the use or possession of alcohol or a
4controlled substance regardless of whether that information is
5contained in the student’s education records. This subsection
6shall not be construed to prohibit a school corporation or
7educational institution from transferring student records
8electronically to the department of education, an accredited
9nonpublic school, an attendance center, a school district, or
10an accredited postsecondary institution in accordance with
11section 256.9, subsection 44 11.
12   Sec. 27.  Section 256.9, subsection 11, Code 2021, is amended
13by striking the subsection and inserting in lieu thereof the
14following:
   1511.  a.  Approve, coordinate, and supervise the use of
16electronic data and information processing by school districts,
17area education agencies, and merged areas, including the
18procurement or development of a single, comprehensive,
19statewide, student information system that is required to be
20used by all school districts, accredited nonpublic schools, and
21area education agencies.
   22b.  (1)  The student information system procured or developed
23shall be designed for the purpose of establishing standardized
24electronic data collections and reporting protocols that
25facilitate compliance with state and federal reporting
26requirements, improve school-to-school and district-to-district
27information exchanges, and maintain the confidentiality of
28individual student and staff data.
   29(2)  The system shall provide for the electronic transfer
30of individual student records between attendance centers,
31school districts, accredited nonpublic schools, area education
32agencies, postsecondary institutions, merged areas, and the
33department.
   34(3)  The system shall be designed to ensure compatibility
35with other information or data management systems used or
-37-1maintained by postsecondary institutions and merged areas as
2required by law.
   3c.  The director shall, to the extent practicable, establish
4a uniform coding and reporting system as part of the student
5information system.
   6d.  The department shall pay for the procurement or
7development of the student information system and shall pay
8for at least the first year of statewide implementation, after
9which the cost of operating the system may be funded through
10the collection of a fee by the department from each school
11district and accredited nonpublic school. The amount of the
12fee shall be based on a per-student rate, not to exceed seven
13dollars per student for the first year of the fee.
   14e.  The student information system shall only be used for
15the purpose of collecting information from school districts,
16accredited nonpublic schools, and area education agencies
17required by state or federal law or for preparation of state
18or federal reports.
   19f.  A school district, accredited nonpublic school, or area
20education agency shall not duplicate the collection of any
21information in the student information system.
22   Sec. 28.  Section 256.9, subsection 44, Code 2021, is amended
23by striking the subsection.
24   Sec. 29.  Section 256.11, subsection 8, Code 2021, is amended
25by striking the subsection and inserting in lieu thereof the
26following:
   278.  a.  The state board shall establish a flexible student
28and school support program to be administered by the director.
29Under the program, upon request of the board of directors of
30a public school district or the authorities in charge of an
31accredited nonpublic school, the director may, for a period
32not to exceed three years, grant the applicable board of
33directors or the authority in charge of the nonpublic school
34the ability to use the flexible student and school support
35program to implement evidence-based practices in innovative
-38-1ways to enhance student learning, well-being, and postsecondary
2success.
   3b.  Approval to participate in the flexible student and
4school support program shall exempt the school district or
5nonpublic school from one or more of the requirements of
6the educational program specified in subsection 3, 4, or 5,
7subsection 6, paragraph “b” or “c”, subsection 7, paragraph “b”
8or “c”, or the minimum school calendar requirements in section
9279.10, subsection 1. An exemption shall be granted only
10if the director deems that the request made is an essential
11part of an educational program to support student learning,
12well-being, and postsecondary success; is necessary for the
13success of the program; and is broadly consistent with the
14intent of the requirements of the educational program specified
15in subsection 3, 4, or 5, subsection 6, paragraph “b” or “c”,
16subsection 7, paragraph “b” or “c”, or the minimum school
17calendar requirements in section 279.10, subsection 1.
   18c.  Approval to participate in the flexible student and
19school support program shall include authority for a school
20district to use funds from the school district’s flexibility
21account under section 298A.2, subsection 2, to implement all or
22part of the flexible student and school support program.
   23d.  The application for the flexible student and school
24support program shall include all of the following and
25be submitted on forms and in a format prescribed by the
26department:
   27(1)  A description of the proposed educational program,
28including evidence used to design the program and evidence of
29involvement of board members, parents, students, community
30members, and staff in development of the program.
   31(2)  Program goals and measures of program effectiveness and
32success, including student success and performance.
   33(3)  A plan for program administration, including the use of
34personnel, facilities, and funding.
   35(4)  A plan for evaluation of the proposed program on at
-39-1least an annual basis, including a plan for program revisions,
2if necessary.
   3(5)  The estimated financial impact of the program on the
4school district or nonpublic school.
   5e.  Approval to participate in the program does not exempt
6the school district or nonpublic school from federal law or
7any other requirements of state law that are not specifically
8exempted by the director.
   9f.  Each school district or nonpublic school approved to
10participate in the flexible student and school support program
11shall file an annual report with the department on the status
12of the program on forms and in a format prescribed by the
13department.
   14g.  Participation in the flexible student and school support
15program may be renewed for additional periods of years, each
16not to exceed three years. The director may revoke approval of
17all or part of any application or approved education program
18if the annual report or any other information available to
19the department indicates that conditions no longer warrant
20use of an exemption or funding from the school district’s
21flexibility account under section 298A.2, subsection 2. Notice
22of revocation must be provided by the director to the school
23district or nonpublic school prior to the beginning of the
24school year for which participation is revoked.
25   Sec. 30.  Section 257.10, subsection 9, paragraph d, Code
262021, is amended to read as follows:
   27d.  For the budget year beginning July 1, 2009, the use
28of the funds calculated under this subsection shall comply
29with the requirements of chapter 284 and shall be distributed
30to teachers pursuant to section 284.3A.
For the budget year
31beginning July 1, 2010, and succeeding budget years, the use
32of the funds calculated under this subsection shall comply
33with the requirements of chapter 284 and shall be distributed
34to teachers pursuant to section 284.3A. If all teacher
35compensation requirements of chapter 284 for the school
-40-1district are met and funds received under this subsection
2remain unexpended and unobligated at the end of a fiscal year
3beginning on or after July 1, 2020, the school district may
4transfer all or a portion of such unexpended and unobligated
5funds for deposit in the school district’s flexibility account
6established under section 298A.2, subsection 2.

7   Sec. 31.  Section 257.10, subsection 12, paragraph d, Code
82021, is amended to read as follows:
   9d.  For the budget year beginning July 1, 2014, and
10succeeding budget years, the use of the funds calculated under
11this subsection shall comply with the requirements of chapter
12284 and shall be distributed to teachers pursuant to section
13284.15. The funds shall be used only to increase the payment
14for a teacher assigned to a leadership role pursuant to a
15framework or comparable system approved pursuant to section
16284.15; to increase the percentages of teachers assigned to
17leadership roles; to increase the minimum teacher starting
18salary to thirty-three thousand five hundred dollars; to
19cover the costs for the time mentor and lead teachers are
20not providing instruction to students in a classroom; for
21coverage of a classroom when an initial or career teacher
22is observing or co-teaching with a teacher assigned to a
23leadership role; for professional development time to learn
24best practices associated with the career pathways leadership
25process; and for other costs associated with a framework or
26comparable system approved by the department of education under
27section 284.15 with the goals of improving instruction and
28elevating the quality of teaching and student learning. If
29all requirements for the school district for the use of funds
30calculated under this subsection are met and funds received
31under this subsection remain unexpended and unobligated at
32the end of a fiscal year beginning on or after July 1, 2020,
33the school district may transfer all or a portion of such
34unexpended and unobligated funds for deposit in the school
35district’s flexibility account established under section
-41-1298A.2, subsection 2.

2   Sec. 32.  Section 298A.2, subsection 2, paragraph a, Code
32021, is amended by adding the following new subparagraphs:
4   NEW SUBPARAGRAPH.  (4)  Teacher salary supplement funds
5received under section 257.10, subsection 9.
6   NEW SUBPARAGRAPH.  (5)  Teacher leadership supplement funds
7received under section 257.10, subsection 12.
8   Sec. 33.  Section 298A.2, subsection 2, paragraph c, Code
92021, is amended by adding the following new subparagraph:
10   NEW SUBPARAGRAPH.  (8)  An approved flexible student and
11school support program under section 256.11, subsection 8.
12DIVISION V
13EDUCATION TAX CREDITS AND DEDUCTIONS
14   Sec. 34.  Section 422.7, subsection 55, Code 2021, is amended
15to read as follows:
   1655.  A taxpayer who is an eligible educator as defined
17in section 62(d)(1) of the Internal Revenue Code
is allowed
18to take the deduction for subtract, to the extent included,
19 certain expenses of elementary and secondary school teachers
20allowed as described under section 62(a)(2)(D) of the Internal
21Revenue Code, as amended by the federal Emergency Economic
22Stabilization Act of 2008, Pub.L. No.110-343,
in computing
23net income for state tax purposes, not to exceed five hundred
24dollars
.
25   Sec. 35.  Section 422.12, subsection 1, Code 2021, is amended
26by adding the following new paragraph:
27   NEW PARAGRAPH.  0c.  “Private instruction” means independent
28private instruction as defined in section 299A.1, subsection
292, paragraph “b”, competent private instruction under section
30299A.2, or private instruction by a nonlicensed person under
31section 299A.3.
32   Sec. 36.  Section 422.12, subsection 2, paragraph b, Code
332021, is amended to read as follows:
   34b.  (1)  A tuition credit equal to twenty-five fifty percent
35of the first one two thousand dollars which the taxpayer has
-42-1paid to others for each dependent in grades kindergarten
2through twelve, for tuition and textbooks of each dependent in
3
 receiving private instruction or attending an elementary or
4secondary school situated in Iowa, which school is accredited
5or approved under section 256.11, which is not operated for
6profit, and which adheres to the provisions of the federal
7Civil Rights Act of 1964 and chapter 216. Notwithstanding
8any other provision, all other credits allowed under this
9subsection shall be deducted before the tuition credit under
10this paragraph. The department, when conducting an audit of
11a taxpayer’s return, shall also audit the tuition tax credit
12portion of the tax return.
   13(2)  Any credit allowed under this paragraph in excess
14of the tax liability is refundable. In lieu of claiming a
15refund, the taxpayer may elect to have the overpayment shown
16on the taxpayer’s final, completed return credited to the tax
17liability for the following tax year.
18   Sec. 37.  EFFECTIVE DATE.  This division of this Act, being
19deemed of immediate importance, takes effect upon enactment.
20   Sec. 38.  RETROACTIVE APPLICABILITY.  This division of this
21Act applies retroactively to January 1, 2021, for tax years
22beginning on or after that date.
23DIVISION VI
24STUDENT ENROLLMENT
25   Sec. 39.  Section 257.6, subsection 1, paragraph a,
26unnumbered paragraph 1, Code 2021, is amended to read as
27follows:
   28Actual enrollment is determined annually by calculating the
29average of the sum of all of the following
on October 1, or the
30first Monday in October if October 1 falls on a Saturday or
31Sunday, and includes all of the following and the sum of all
32of the following on April 1 immediately preceding the October
33determination, or the first Monday in April if April 1 falls
34on a Saturday or Sunday
:
35   Sec. 40.  Section 257.6, subsection 3, Code 2021, is amended
-43-1to read as follows:
   23.  Additional enrollment because of special education.
   3a.  A school district shall determine its additional
4enrollment because of special education, as defined in this
5section, by November 1 of each year, or by the first Monday in
6November if November 1 falls on a Saturday or Sunday,
and shall
7certify its additional enrollment because of special education
8to the department of education by November 15 of each year, and
9the department shall promptly forward the information to the
10department of management.
   11b.  For the purposes of this chapter, “additional enrollment
12because of special education”
is determined by calculating the
13average of the following:

   14(1)   An amount determined bymultiplying the weighting of
15each category of child under section 256B.9 times the number of
16children in each category totaled for all categories minus the
17total number of children in all categories, as determined on
18May 1 immediately preceding the November determination under
19subparagraph (2), or the first Monday in May if May 1 falls on a
20Saturday or Sunday
.
   21(2)  An amount determined by multiplying the weighting of
22each category of child under section 256B.9 times the number
23of children in each category totaled for all categories minus
24the total number of children in all categories, as determined
25on November 1 of each year, or the first Monday in November if
26November 1 falls on a Saturday or Sunday.
27   Sec. 41.  Section 257.6, subsection 5, paragraph a, Code
282021, is amended to read as follows:
   29a.  Weighted enrollment is the budget enrollment plus the
30district’s additional enrollment because of special education
31calculated by in November 1 of the base year under subsection
323
plus additional pupils added due to the application of the
33supplementary weighting as determined under subsection 5A.
34   Sec. 42.  Section 257.6, Code 2021, is amended by adding the
35following new subsection:
-44-1   NEW SUBSECTION.  5A.  Pupils added due to application of
2supplementary weighting.
   3a.  A school district shall determine its pupils added due
4to application of supplementary weighting by October 1 of each
5year, or by the first Monday in October if October 1 falls on a
6Saturday or Sunday, and shall certify its pupils added due to
7the application of supplementary weighting to the department
8of education by October 15 of each year, and the department
9shall promptly forward the information to the department of
10management.
   11b.  For the purposes of this chapter, “pupils added due
12to application of supplementary weighting”
is determined by
13calculating the average of the following:
   14(1)  The sum of the number of additional pupils assigned
15to a student or to the school district under section 257.11,
16280.4, or other provision of law providing for supplementary
17weighting, but excluding those under subsection 1, as
18determined on April 1 immediately preceding the October
19determination under subparagraph (2), or the first Monday in
20April if April 1 falls on a Saturday or Sunday.
   21(2)  The sum of the number of additional pupils assigned
22to a student or to the school district under section 257.11,
23280.4, or other provision of law providing for supplementary
24weighting, but excluding those under subsection 1, as
25determined on October 1 of each year, or the first Monday in
26October if October 1 falls on a Saturday or Sunday.
27   Sec. 43.  Section 261E.7, subsection 1, unnumbered paragraph
281, Code 2021, is amended to read as follows:
   29Not later than June 30 of each year, a school district
30shall pay a tuition reimbursement amount to a postsecondary
31institution that has enrolled its resident eligible
32students under this chapter, unless the eligible student is
33participating in open enrollment under section 282.18, in
34which case, the tuition reimbursement amount shall be paid
35by the receiving district. However, if a child’s residency
-45-1changes during a school year, the tuition shall be paid by the
2district in which the child was enrolled as of the October
3 date specified in section 257.6, subsection 1, paragraph “a”,
4 or the district in which the child was counted under section
5257.6, subsection 1, paragraph “a”, subparagraph (6), as of
6the October date specified in section 257.6, subsection 1,
7paragraph “a”
. For students enrolled at the Iowa school for the
8deaf and the Iowa braille and sight saving school, the state
9board of regents shall pay a tuition reimbursement amount by
10June 30 of each year. The amount of tuition reimbursement for
11each separate course shall equal the lesser of:
12   Sec. 44.  Section 273.5, subsection 5, Code 2021, is amended
13to read as follows:
   145.  Provide Annually provide each school district within
15the area served and the department of education with a special
16education weighted enrollment count, including the additional
17enrollment because of special education for December 1 of each
18year
.
19   Sec. 45.  Section 279.60, subsection 1, Code 2021, is amended
20to read as follows:
   211.  Each school district shall administer the teaching
22strategies gold early childhood assessment to every resident
23prekindergarten or four-year-old child whose parent or guardian
24enrolls the child in the district, and shall administer a valid
25and reliable universal screening instrument, as prescribed by
26the department of education, to every kindergarten student
27enrolled in the district not later than the October date
28specified in section 257.6, subsection 1, paragraph “a”. The
29assessment shall be aligned with state early learning standards
30and preschool programs shall be encouraged to administer the
31assessment at least at the beginning and end of the preschool
32program, with the assessment information entered into the
33statewide longitudinal data system. The department shall work
34to develop agreements with head start programs to incorporate
35similar information about four-year-old children served by head
-46-1start into the statewide longitudinal data system.
2   Sec. 46.  Section 282.12, subsection 4, Code 2021, is amended
3to read as follows:
   44.  The number of pupils participating in a whole grade
5sharing agreement shall be determined on the October date
6specified in section 257.6, subsection 1, paragraph “a”, and on
7the second Friday of January of each year.
8   Sec. 47.  Section 282.18, subsection 4, paragraph a, Code
92021, is amended to read as follows:
   10a.  After March 1 of the preceding school year and until
11the October date specified in section 257.6, subsection 1,
 12paragraph “a”, the parent or guardian shall send notification
13to the district of residence and the receiving district, on
14forms prescribed by the department of education, that good
15cause, as defined in paragraph “b”, exists for failure to meet
16the March 1 deadline. The board of directors of a receiving
17school district may adopt a policy granting the superintendent
18of the school district authority to approve open enrollment
19applications submitted after the March 1 deadline. The board
20of the receiving district shall take action to approve the
21request if good cause exists. If the request is granted,
22the board shall transmit a copy of the form to the parent or
23guardian and the school district of residence within five days
24after board action. A denial of a request by the board of a
25receiving district is not subject to appeal.
26   Sec. 48.  EFFECTIVE DATE.  This division of this Act, being
27deemed of immediate importance, takes effect upon enactment.
28   Sec. 49.  APPLICABILITY.  This division of this Act applies
29to actual enrollment determinations for school budget years
30beginning on or after the effective date of this division of
31this Act.
32DIVISION VII
33OPEN ENROLLMENT
34   Sec. 50.  Section 282.18, subsection 4, paragraphs a and b,
35Code 2021, are amended to read as follows:
-47-   1a.  After March 1 of the preceding school year and until
2the date specified in section 257.6, subsection 1, the
3parent or guardian shall send notification to the district of
4residence and the receiving district, on forms prescribed by
5the department of education, that good cause, as defined in
6paragraph “b”, exists for failure to meet the March 1 deadline.
 7However, notifications of good cause based on significant need
8for improvement must be filed on or before April 15.
The board
9of directors of a receiving school district may adopt a policy
10granting the superintendent of the school district authority to
11approve open enrollment applications submitted after the March
121 deadline. The board of the receiving district shall take
13action to approve the request if good cause exists. If the
14request is granted, the board shall transmit a copy of the form
15to the parent or guardian and the school district of residence
16within five days after board action. A denial of a request by
17the board of a receiving district is not subject to appeal.
   18b.  For purposes of this section, “good cause”:
   19(1)   “Good cause”means a change in a child’s residence due
20to a change in family residence, a change in the state in which
21the family residence is located, a change in a child’s parents’
22marital status, a guardianship or custody proceeding, placement
23in foster care, adoption, participation in a foreign exchange
24program, or participation in a substance abuse or mental
25health treatment program, a change in the status of a child’s
26resident district such as removal of accreditation by the state
27board, surrender of accreditation, or permanent closure of a
28nonpublic school, revocation of a charter school contract as
29provided in section 256F.8, the failure of negotiations for a
30whole grade sharing, reorganization, dissolution agreement,
31 or the rejection of a current whole grade sharing agreement,
32or reorganization plan, or if the child’s assigned attendance
33center in the district of residence is identified as in
34significant need for improvement
. If the good cause relates to
35a change in status of a child’s school district of residence,
-48-1however, action by a parent or guardian must be taken to file
2the notification within forty-five days of the last board
3action or within thirty days of the certification of the
4election, whichever is applicable to the circumstances.
   5(2)  “Significant need for improvement” means a school
6attendance center designated by the department of education
7under the priority category under the Iowa school performance
8profiles for two or more of the immediately preceding school
9years or identified for comprehensive support and improvement
10under the federal Every Student Succeeds Act, Pub.L. No.
11114-95, for two or more of the immediately preceding school
12years.
13   Sec. 51.  Section 282.18, subsection 5, Code 2021, is amended
14to read as follows:
   155.  Open enrollment applications filed after March 1
16of the preceding school year that do not qualify for good
17cause as provided in subsection 4 shall be subject to the
18approval of the board of the resident district and the board
19of the receiving district. The parent or guardian shall send
20notification to the district of residence and the receiving
21district that the parent or guardian seeks to enroll the
22parent’s or guardian’s child in the receiving district. A
23decision of either board to deny an application filed under
24this subsection involving repeated acts of harassment of the
25student that the resident district cannot adequately address, a
26consistent failure of the district to reasonably respond to a
27student’s failure to meet basic academic standards after notice
28provided by a parent or guardian,
or a serious health condition
29of the student that the resident district cannot adequately
30address is subject to appeal under section 290.1. The state
31board shall adopt by rule the criteria for determining a
32district’s consistent failure to reasonably respond to a
33student’s failure to meet basic academic standards and shall

34 exercise broad discretion to achieve just and equitable
35results that are in the best interest of the affected child or
-49-1children.
2   Sec. 52.  Section 282.18, subsection 10, paragraphs b and c,
3Code 2021, are amended to read as follows:
   4b.  A receiving district may send school vehicles into the
5district of residence of the pupil using the open enrollment
6option under this section, for the purpose of transporting the
7pupil to and from school in the receiving district, if the
8boards of both the sending and receiving districts agree to
9this arrangement
 districts are contiguous.
   10c.  If the pupil meets the economic eligibility requirements
11established by the department and state board of education, the
12sending district is responsible for providing transportation
13or paying the pro rata cost of the transportation to a parent
14or guardian for transporting the pupil to and from a point
15on a regular school bus route of a contiguous receiving
16district unless the cost of providing transportation or the
17pro rata cost of the transportation to a parent or guardian
18exceeds the average transportation cost per pupil transported
19for the previous school year in the district. The economic
20eligibility requirements established by the department of
21education and state board of education shall minimally include
22those pupils with household incomes of two hundred percent
23or less of the federal poverty level as defined by the most
24recently revised poverty income guidelines published by the
25United States department of health and human services.
If
26the cost exceeds the average transportation cost per pupil
27transported for the previous school year, the sending district
28shall only be responsible for that average per pupil amount.
29A sending district which provides transportation for a pupil
30to a contiguous receiving district under this subsection may
31withhold, from the district cost per pupil amount that is to
32be paid to the receiving district, an amount which represents
33the average or pro rata cost per pupil for transportation,
34whichever is less.
35   Sec. 53.  Section 282.18, subsection 11, Code 2021, is
-50-1amended to read as follows:
   211.  a.  A pupil who participates in open enrollment for
3purposes of attending a grade in grades nine through twelve
4in a school district other than the district of residence is
5ineligible to
 or who has paid tuition and attended school, or
6has attended school pursuant to a mutual agreement between
7the two districts in a district other than the pupil’s
8district of residence, may
participate immediately in varsity
9 interscholastic athletic contests and athletic competitions
10during the pupil’s first ninety school days of upon enrollment
11in the district. However, a pupil may participate immediately
12in a varsity interscholastic sport under any of the following
13circumstances:

   14(1)  If the pupil is entering grade nine for the first
15time and did not participate in an interscholastic athletic
16competition for another school or school district during the
17summer immediately following eighth grade.
   18(2)  If the district of residence and the other school
19district jointly participate in the sport.
   20(3)  If the sport in which the pupil wishes to participate is
21not offered in the district of residence.
   22(4)  If the pupil chooses to use open enrollment to attend
23school in another school district because the district in which
24the student previously attended school was dissolved and merged
25with one or more contiguous school districts under section
26256.11, subsection 12.
   27(5)  If the pupil participates in open enrollment because the
28pupil’s district of residence has entered into a whole grade
29sharing agreement with another district for the pupil’s grade.
   30(6)  If the parent or guardian of the pupil participating
31in open enrollment is an active member of the armed forces and
32resides in permanent housing on government property provided by
33a branch of the armed services.
   34(7)  If the district of residence determines that the pupil
35was previously subject to a founded incident of harassment or
-51-1bullying as defined in section 280.28 while attending school
2in the district of residence.
   3b.  A pupil who has paid tuition and attended school, or
4has attended school pursuant to a mutual agreement between the
5two districts, in a district other than the pupil’s district
6of residence for at least one school year is also eligible to
7participate immediately in interscholastic athletic contests
8and athletic competitions under this section, but only as a
9member of a team from the district that pupil had attended.
   10c.  For purposes of this subsection, “school days of
11enrollment”
does not include enrollment in summer school. For
12purposes of this subsection, “varsity” means the same as defined
13in section 256.46, subsection 3.
14DIVISION VIII
15SCHOOL BOARD POWERS AND DUTIES
16   Sec. 54.  Section 279.1, Code 2021, is amended by adding the
17following new subsection:
18   NEW SUBSECTION.  3.  A school corporation is entrusted with
19public funds for the purpose of improving student outcomes,
20including but not limited to student academic achievement and
21skill proficiency, and the board of directors of the school
22corporation is responsible for overseeing such improvement.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
   26This bill relates to the funding and operation of
27educational offerings in the state by establishing a student
28first scholarship program for certain pupils attending a
29nonpublic school, modifying provisions governing voluntary
30diversity plans, creating a new charter school program,
31modifying certain education tax credits and deductions,
32and amending provisions relating to education information,
33programs, and funding.
   34Under division I of the bill, the following pupils who attend
35a nonpublic school are eligible to receive a student first
-52-1scholarship: (1) a pupil eligible to enroll in kindergarten
2who, if enrolled in the pupil’s district of residence, would
3attend a public school identified for comprehensive support
4and improvement under the federal Every Student Succeeds Act,
5Pub.L. No.114-95; (2) a pupil eligible to enroll in grade
61 through grade 12 if the pupil has attended a public school
7identified for comprehensive support and improvement under the
8federal Every Student Succeeds Act, Pub.L. No.114-95, for
9the equivalent of the two immediately preceding semesters; and
10(3) a pupil who received a student first scholarship for the
11immediately preceding school budget year and who is eligible
12to enroll in grade 1 through grade 12. By January 31 preceding
13the school year for which the student first scholarship is
14requested, the parent or guardian of the pupil requesting to
15receive a student first scholarship must submit an application
16to the department of education indicating that the parent or
17guardian intends to enroll the pupil in a nonpublic school for
18the entirety of the school year.
   19The bill requires that by March 1 preceding the school year
20for which the student first scholarship is requested, the
21department of education must notify the parent or guardian of
22each pupil approved for the following school year to receive a
23student first scholarship and the amount of the student first
24scholarship for the pupil, as specified in the bill. Student
25first scholarships must be approved for each school year and
26applications must be submitted each year.
   27The bill creates a student first scholarship fund in
28the state treasury under the control of the department of
29education consisting of moneys appropriated to the department
30of education for the purpose of providing student first
31scholarships. For the fiscal year commencing July 1, 2022, and
32each succeeding fiscal year, the bill appropriates from the
33general fund of the state to the department of education for
34deposit in the fund the amount necessary to pay all student
35first scholarships approved for that fiscal year. For each
-53-1pupil approved for a student first scholarship, the department
2of education must establish an account for that pupil in the
3student first scholarship fund. The amount of the pupil’s
4student first scholarship is deposited into the pupil’s account
5on July 1 and such amount is available for use by parents and
6guardians for the payment of qualified educational expenses, as
7defined in the bill, incurred by the parent or guardian for the
8pupil during that fiscal year.
   9The bill authorizes the department of education to contract
10with a private financial management firm to manage the student
11first scholarship fund, in collaboration with the treasurer
12of state, including providing for the disbursement of student
13first scholarships in the form of an electronic debit card
14or checks that are payable directly from the pupil’s account
15within the fund.
   16The bill provides that moneys remaining in a pupil’s account
17upon the conclusion of the fiscal year shall remain in the
18pupil’s account in the student first scholarship fund for the
19payment of qualified educational expenses in future fiscal
20years during which the pupil participates in the program or for
21higher education costs as authorized in the bill.
   22Under the bill, for each pupil with a positive balance in
23the pupil’s account in the student first scholarship fund upon
24graduation from high school, the department of education is
25required to maintain the account in the fund until the pupil
26reaches an age specified in the bill. Until the pupil reaches
27the age limitation, moneys in the pupil’s account may be used
28by the pupil for qualified education expenses, as defined in
29Code section 12D.1. Moneys in a pupil’s account when the pupil
30reaches the age limitation are transferred by the department of
31education for deposit in the general fund of the state.
   32The bill establishes procedures for parent or guardian
33appeals to the state board of education and provides that a
34person who makes a false claim for the purpose of obtaining
35a student first scholarship or who knowingly receives the
-54-1scholarship or makes a payment from an account in the student
2first scholarship fund without being legally entitled to do so
3is guilty of a fraudulent practice and is subject to a criminal
4penalty. The bill directs the department of education to
5recover scholarships and amounts improperly awarded or paid
6and requires the closure of the pupil’s account and transfer
7of all remaining moneys to the general fund of the state. The
8bill also establishes requirements and procedures for parents
9or guardians and for the department of education when a pupil
10receiving a student first scholarship withdraws or is expelled
11from the nonpublic school prior to the end of the required
12attendance period of the school year, including requirements
13for disposition of the pupil’s account within the student first
14scholarship fund and recovery of scholarship funds.
   15Division I of the bill provides that a student first
16scholarship received by a taxpayer is not taxable income for
17purposes of state individual income taxation. This provision
18of the bill applies to tax years beginning on or after January
191, 2022.
   20The section of the bill enacting the student first
21scholarship program applies to school budget years and fiscal
22years beginning on or after July 1, 2022.
   23Division II of the bill establishes a new charter school
24program within the state under new Code chapter 256E and
25prohibits new charter schools from being established on or
26after July 1, 2021, under the existing charter school program,
27Code chapter 256F. Charter schools established under Code
28chapter 256F prior to July 1, 2021, shall continue to operate
29under and be subject to the requirements of that Code chapter.
   30The bill creates two models by which a charter school may
31be established: (1) school board-state board model, under
32which a school board may create a founding group to apply to
33the state board of education (state board) for approval to
34establish and operate a charter school within and as a part of
35the school district by establishing a new attendance center,
-55-1creating a new school within an existing attendance center,
2or converting an existing attendance center; and (2) founding
3group-state board model, under which a founding group may
4apply to the state board for approval to establish and operate
5a charter school within the boundaries of the state that
6operates independently from any public school district as a new
7attendance center.
   8The bill defines “founding group” to mean a person, group
9of persons, or education service provider that develops and
10submits an application for a charter school to the state board.
11The bill defines “governing board” to mean the independent
12board of a charter school whose members are elected or selected
13pursuant to the charter school’s application and charter school
14contract.
   15The bill establishes requirements for charter school
16application contents and procedure, requires the state board to
17adopt rules to establish appropriate application timelines and
18deadlines for the submission of charter school applications,
19and establishes standards for reviewing charter school
20applications by the state board, as specified in the bill.
21Each application review includes evaluation of the written
22application, an in-person interview with the applicant, and an
23opportunity in a public forum for local residents of the public
24school district within which the applicant proposes to locate
25the charter school to learn about and provide input on each
26application.
   27The bill establishes provisions governing the approval
28or denial of a charter school application and the timing of
29such a decision, including the prohibition on approving an
30application if the applicant has another pending charter school
31application. The decision of the state board as to a charter
32school application is not appealable.
   33After approval of the charter school application, the
34applicant and the state board must execute a charter school
35contract setting forth the operational performance expectations
-56-1and measures by which the charter school will be evaluated.
2An initial charter school contract shall be granted for a
3term of 10 school budget years. The contract may provide for
4requirements or conditions to govern and monitor the start-up
5progress of an approved charter school prior to the opening
6of the charter school including but not limited to conditions
7to ensure that the charter school meets all building, health,
8safety, insurance, and other legal requirements.
   9A charter school established under the bill has all the
10powers necessary for carrying out the terms of the charter
11school contract including those powers specified in the bill.
12A charter school established under the bill is exempt from
13all state statutes and rules and any local rule, regulation,
14or policy applicable to a noncharter school, except that
15the charter school shall do all of the following: (1) meet
16all applicable federal, state, and local health and safety
17requirements and laws prohibiting discrimination on the
18basis of race, creed, color, sex, sexual orientation, gender
19identity, national origin, religion, ancestry, or disability;
20(2) operate as a nonsectarian, nonreligious school; (3) be
21free of tuition and application fees to Iowa resident students
22between the ages of 5 and 21 years; (4) be subject to and comply
23with Code chapters 216 and 216A relating to civil and human
24rights; (5) provide special education services in accordance
25with Code chapter 256B; (6) be subject to the same financial
26audits, audit procedures, and audit requirements as a school
27district; (7) be subject to and comply with the provisions of
28Code chapter 285 relating to the transportation of students;
29(8) be subject to and comply with the education program
30and testing requirements of Code section 256.7(21) and the
31educational standards of Code section 256.11, unless waived by
32the state board during the application process; and (9) provide
33instruction for at least the number of days or hours required
34by Code section 279.10(1), unless waived by the state board
35during the application process.
-57-
   1The bill requires a charter school to employ or contract
2with teachers who hold a valid license with an endorsement for
3the type of instruction or service for which the teacher is
4employed or under contract and establishes requirements for
5charter schools relating to enrollment and admissions policies.
6Upon enrollment of an eligible student, the charter school is
7required to notify the public school district of residence.
   8Each student enrolled in a charter school established
9under the bill shall be counted, for state school foundation
10purposes, in the student’s district of residence. The school
11district of residence is then required to pay to the charter
12school in which the student is enrolled an amount equal to the
13sum of the state cost per pupil for the previous school year
14plus the teacher leadership supplement state cost per pupil
15for the previous school year plus any moneys received for the
16pupil as a result of the non-English speaking weighting for the
17previous school year multiplied by the state cost per pupil
18for the previous school year. If a student is an eligible
19pupil under the postsecondary enrollment options program, the
20charter school shall pay the tuition reimbursement amount to an
21eligible postsecondary institution. The bill also establishes
22provisions governing the payments to charter schools in the
23first year of operation.
   24The bill establishes requirements for the performance
25provisions within the charter school contract that will guide
26the evaluation of the charter school by the state board.
27The state board is required to monitor the performance and
28compliance of each charter school it approves, including
29collecting and analyzing data according to the charter school
30contract in order to meet the requirements of the charter
31school contract and the bill. As part of the charter school
32contract, the charter school may be required to submit
33an annual report to assist the state board in evaluating
34the charter school’s performance and compliance with the
35performance framework.
-58-
   1The bill also establishes provisions to govern situations
2where a charter school’s performance under the charter school
3contract or compliance with applicable laws or rules is
4unsatisfactory, including the authority to take appropriate
5corrective actions, impose sanctions, or revoke the contract.
6A charter school contract may be renewed for periods of
7time not to exceed an additional 10 years. The bill also
8establishes provisions that govern the renewal process for
9a charter school contract, including standards under which
10the state board must operate when reviewing a charter school
11contract renewal application.
   12The bill requires that, prior to any charter school closure
13decision, the state board must develop a charter school closure
14protocol to ensure timely notice to parents, provide for the
15orderly transition of students and student records to new
16schools, and to provide proper disposition of school funds,
17property, and assets. The bill also specifies the priority to
18be used when satisfying obligations of a charter school after
19its closure.
   20Under the bill, each charter school is required to prepare
21and file an annual report with the department of education,
22the contents of which shall be determined by the department
23by rule. The state board of education is required to prepare
24and file with the general assembly by December 1, annually, a
25comprehensive report including items specified in the bill,
26along with findings and recommendations relating to the charter
27school program in the state and whether the charter school
28program is meeting the goals and purposes of the program.
   29Division III of the bill eliminates implementation of a
30voluntary diversity plan as a reason to deny open enrollment
31of a pupil.
   32Under current law, a school district subject to a voluntary
33diversity plan or court-ordered desegregation may deny a
34request for open enrollment of a pupil from one district to
35another if the superintendent finds that the enrollment or
-59-1release of the pupil will adversely affect the district’s
2implementation of the voluntary diversity plan or court-ordered
3desegregation.
   4The bill further eliminates provisions directing the state
5board of education to adopt rules establishing definitions,
6guidelines, and a review process that school districts must
7follow when adopting a voluntary diversity plan and provisions
8requiring the department of education to provide technical
9assistance to school districts seeking to adopt a voluntary
10diversity plan.
   11The bill makes conforming changes and strikes obsolete
12language.
   13Division IV of the bill modifies and consolidates language
14regarding electronic data and information duties of the
15director of the department of education. Under the bill, the
16director is required to approve, coordinate, and supervise the
17use of electronic data and information processing by school
18districts, area education agencies, and merged areas, including
19the procurement or development of a single, comprehensive,
20statewide, student information system that is required to be
21used by all school districts, accredited nonpublic schools,
22and area education agencies. The student information system
23procured or developed must be designed for the purpose of
24establishing standardized electronic data collections and
25reporting protocols that facilitate compliance with state and
26federal reporting requirements, improve school-to-school and
27district-to-district information exchanges, and maintain the
28confidentiality of individual student and staff data.
   29The department of education is required to pay for the
30procurement or development of the student information system
31and shall pay for at least the first year of statewide
32implementation, after which the cost of operating the system
33may be funded through the collection of a fee by the department
34from each school district and accredited nonpublic school. The
35amount of the fee shall be based on a per-student rate, not to
-60-1exceed $7 per student for the first year of the fee.
   2Division IV also requires the state board of education
3to establish a flexible student and school support program
4to be administered by the director of the department of
5education. Under such program, upon request of the board of
6directors of a public school district or the authorities in
7charge of an accredited nonpublic school, the director may,
8for a period not to exceed three years, grant the applicable
9board of directors or the authority in charge of the nonpublic
10school the ability to use the flexible student and school
11support program to implement evidence-based practices in
12innovative ways to enhance student learning, well-being, and
13postsecondary success. Approval to participate in the flexible
14student and school support program shall exempt the school
15district or nonpublic school from one or more requirements of
16the educational program specified in the bill or the minimum
17school calendar requirements in Code section 279.10. An
18exemption shall be granted only if the director deems that the
19request made is an essential part of an educational program
20to support student learning, well-being, and postsecondary
21success; is necessary for the success of the program; and
22is broadly consistent with the intent of the requirements
23of the educational program or the minimum school calendar
24requirements.
   25Approval to participate in the flexible student and school
26support program also includes the authority for a school
27district to use funds from the school district’s flexibility
28account under Code section 298A.2(2) to implement all or part
29of the flexible student and school support program. The bill
30also establishes requirements relating to program applications,
31renewal of participation in the program, and revocation of
32participation in the program.
   33Division IV of the bill also authorizes school districts to
34transfer unexpended and unobligated teacher salary supplement
35funding under Code section 257.10(9) and teacher leadership
-61-1salary supplement funding under Code section 257.10(12) to
2the school district’s flexibility account under Code section
3298A.2(2).
   4Currently, a taxpayer receives the tuition and textbook
5tax credit for each dependent of the taxpayer attending an
6accredited private elementary or secondary school equal to
725 percent of the first $1,000 which the taxpayer has paid
8to others for the tuition and textbooks of each dependent in
9attendance at such a school.
   10Division V of the bill allows a taxpayer to receive
11the tuition and textbook tax credit for the tuition and
12textbooks of each dependent of the taxpayer receiving private
13instruction. The bill defines “private instruction” to mean a
14student receiving independent private instruction as defined in
15Code section 299A.1(2)(b), competent private instruction under
16Code section 299A.2, or private instruction by a nonlicensed
17person under Code section 299A.3.
   18The bill also increases the tuition and textbook tax credit
19to equal 50 percent of the first $2,000 for the tuition and
20textbooks of each dependent receiving private instruction or in
21attendance in grades kindergarten through 12. The bill makes
22the tax credit refundable.
   23Division V also provides that a taxpayer that is an eligible
24educator is allowed to deduct certain expenses of elementary
25and secondary school teachers as described under section
2662(a)(2)(D) of the Internal Revenue Code in computing net
27income for state tax purposes, not to exceed $500.
   28Division V of the bill takes effect upon enactment and
29applies retroactively to January 1, 2021, for tax years
30beginning on or after that date.
   31Code section 257.6(1)(a) provides that each school
32district’s actual enrollment is determined annually on October
331, or the first Monday in October if October 1 falls on a
34Saturday or Sunday. Division VI of the bill amends methodology
35for determining the actual enrollment each year. Under the
-62-1bill, actual enrollment is determined annually by calculating
2the average of the count on October 1, or the first Monday
3in October if October 1 falls on a Saturday or Sunday,
4and the count on April 1 immediately preceding the October
5determination, or the first Monday in April if April 1 falls
6on a Saturday or Sunday.
   7Division VI makes similar changes to the provisions of
8Code section 257.6 governing the calculation of each school
9district’s additional enrollment because of special education
10and each school district’s pupils added due to application
11of supplementary weighting, by requiring an average of such
12amounts determined on two specified dates.
   13Division VI makes corresponding changes to other provisions
14of law.
   15Division VI of the bill takes effect upon enactment and
16applies to actual enrollment determinations for school budget
17years beginning on or after the effective date of division VI
18of the bill.
   19Division VII modifies several provisions relating to Iowa’s
20open enrollment law under Code section 282.18.
   21Under current law, good cause must be shown for failing to
22file an open enrollment request after the March 1 deadline
23preceding the school year. The bill adds the determination
24that the child’s assigned attendance center in the district of
25residence is identified as in significant need for improvement,
26as defined in the bill, to the definition of “good cause” and
27specifies that notifications of good cause based on significant
28need for improvement must be filed on or before April 15.
   29Under Code section 282.18(5), open enrollment applications
30filed after March 1 of the preceding school year that do not
31qualify for good cause are subject to the approval of the
32board of the resident district and the board of the receiving
33district. The bill provides that a district’s denial of
34an application that involves a consistent failure of the
35district to reasonably respond to a student’s failure to meet
-63-1basic standards is subject to appeal to the state board of
2education under Code section 290.1. The bill also requires
3the state board of education to adopt by rule the criteria for
4determining a consistent failure to respond to academic needs.
   5Under Code section 282.18(10)(b), a receiving district may
6send school vehicles into the district of residence of the
7pupil using the open enrollment option under this Code section,
8for the purpose of transporting the pupil to and from school
9in the receiving district, if the boards of both the sending
10and receiving districts agree to this arrangement. The bill
11modifies this authority to send school vehicles into a district
12of residence by striking the condition that both school boards
13agree and instead authorizes such action if the districts are
14contiguous.
   15Under Code section 282.18(10)(b), if a pupil meets the
16economic eligibility requirements established by the department
17of education and state board of education, the sending district
18is responsible for providing transportation or paying the
19pro rata cost of the transportation to a parent or guardian
20for transporting the pupil to and from a point on a regular
21school bus route of a contiguous receiving district unless the
22cost of providing transportation or the pro rata cost of the
23transportation to a parent or guardian exceeds the average
24transportation cost per pupil transported for the previous
25school year in the district. If the cost exceeds the average
26transportation cost per pupil transported for the previous
27school year, the sending district shall only be responsible for
28that average per pupil amount. The bill removes the condition
29for the receiving district to be contiguous and establishes
30minimum standards for the economic eligibility requirements
31established by the department and state board of education.
32The bill also modifies conditions for a sending district to
33withhold certain amounts payable to the receiving district when
34the sending district provides transportation for a pupil.
   35Code section 282.18(11)(a) generally provides that a pupil
-64-1who participates in open enrollment for purposes of attending
2a grade in grades 9 through 12 in a school district other
3than the district of residence is ineligible to participate
4in varsity interscholastic athletic contests and athletic
5competitions during the pupil’s first 90 school days of
6enrollment in the district. Additionally, under Code section
7282.18(11)(b), a pupil who has paid tuition and attended
8school, or has attended school pursuant to a mutual agreement
9between the two districts, in a district other than the pupil’s
10district of residence for at least one school year, is also
11eligible to participate immediately in interscholastic athletic
12contests and athletic competitions. The bill removes the
1390-day restriction and the one-year restriction and provides
14that a pupil who participates in open enrollment or who has
15paid tuition and attended school, or has attended school
16pursuant to a mutual agreement between the two districts in
17a district other than the pupil’s district of residence, may
18participate immediately in interscholastic athletic contests
19and athletic competitions upon enrollment in the district.
   20Division VIII amends Code section 279.1 to specify that
21a school corporation is entrusted with public funds for the
22purpose of improving student outcomes, including but not
23limited to student academic achievement and skill proficiency,
24and the board of directors of the school corporation is
25responsible for overseeing such improvement.
-65-
md/jh