Senate File 29 - IntroducedA Bill ForAn Act 1relating to education by modifying the duties and
2authority of certain state and local governmental entities,
3establishing an education savings grant program and fund,
4making appropriations, providing penalties, and including
5effective date and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2REPEAL OF DEPARTMENT OF EDUCATION AND
3STATE BOARD OF EDUCATION
4   Section 1.  NEW SECTION.  256B.16  Transfer of authority and
5duties.
   61.  Beginning July 1, 2018, the authority and duties of the
7department of education, the division of special education
8created under section 256B.1, the state board of education, and
9the director of the department of education under this chapter
10shall to the extent feasible be transferred to the appropriate
11area education agency where such special education services
12are being provided. Accordingly, beginning July 1, 2018, all
13references to the department of education or the division of
14special education under this chapter and references to the
15department of education or the division of special education
16under other provisions of law relating to this chapter shall
17mean the applicable area education agency and all references to
18the state board of education or the director of the department
19of education under this chapter or other provisions of law
20relating to this chapter shall mean the board of directors of
21the area education agency and the administrator of the area
22education agency respectively.
   232.  Any moneys remaining in any account or fund under the
24control of the department of education at the conclusion
25of the fiscal year beginning July 1, 2017, relative to
26the provisions of this chapter shall be transferred to the
27control of the department of human services for such purposes.
28Notwithstanding section 8.33, the moneys transferred in
29accordance with this subsection shall not revert to the account
30or fund from which appropriated or transferred.
   313.  Any contract entered into by the department of education
32relating to the provisions of this chapter in effect at the
33conclusion of the fiscal year beginning July 1, 2017, shall
34continue in full force and effect pending transfer of such
35contracts to the area education agencies.
-1-
   14.  Any rule, regulation, form, order, or directive
2promulgated by the department of education relative to the
3provisions of this chapter in existence at the conclusion of
4the fiscal year beginning July 1, 2017, shall continue in full
5force and effect.
   65.  In regard to updating references and format in the Iowa
7administrative code in order to correspond to the transferring
8of duties of this chapter, the administrative rules coordinator
9and the administrative rules review committee, in consultation
10with the administrative code editor, shall jointly develop a
11schedule for the necessary updating of the Iowa administrative
12code.
13   Sec. 2.  Section 256C.1, Code 2017, is amended to read as
14follows:
   15256C.1  Definitions.
   16As used in this chapter:
   171.  “Approved local program” means a school district’s
18program for four-year-old children approved by the department
19of education to provide high quality preschool instruction
.
   202.  “Department” means the department of education.
   213.  “Director” means the director of the department of
22education.
   234.    2.  “Preschool program” means the statewide preschool
24program for four-year-old children created in accordance with
25this chapter.
   265.    3.  “School district approved to participate in the
27preschool program”
means a school district that meets the
28school district requirements under section 256C.3 and has been
29approved by the department to participate in the preschool
30program
.
   316.  “State board” means the state board of education.
32   Sec. 3.  Section 256C.2, subsection 2, Code 2017, is amended
33by striking the subsection.
34   Sec. 4.  Section 256C.3, subsection 2, paragraph a,
35subparagraph (3), Code 2017, is amended to read as follows:
-2-   1(3)  The individual possesses a bachelor’s or graduate
2degree from an accredited college or university with a major
3in early childhood education or other appropriate major
4identified in rule by the department as determined by the
5school district’s board of directors
.
6   Sec. 5.  Section 256C.3, subsection 3, unnumbered paragraph
71, Code 2017, is amended to read as follows:
   8The state board shall adopt rules to further define the
9following preschool program requirements which shall be used to
10determine whether or not a
 Each local program implemented by
11a school district approved to implement the preschool program
12qualifies as an approved local program shall address or conform
13with all of the following
:
14   Sec. 6.  Section 256C.3, subsection 3, paragraph e, Code
152017, is amended to read as follows:
   16e.  Collaboration with participating families, early care
17providers, and community partners including but not limited to
18early childhood Iowa area boards, head start programs, shared
19visions and other programs provided under the auspices of the
20child development coordinating council
, licensed child care
21centers, registered child development homes, area education
22agencies, child care resource and referral services provided
23under section 237A.26, early childhood special education
24programs, services funded by Tit.I of the federal Elementary
25and Secondary Education Act of 1965, and family support
26programs.
27   Sec. 7.  Section 256C.3, subsection 4, Code 2017, is amended
28by striking the subsection and inserting in lieu thereof the
29following:
   304.  School district requirements.
   31a.  Subject to implementation of chapter 28E agreements
32between a school district and community-based providers of
33services to four-year-old children, a four-year-old child who
34is enrolled in a child care center or child development home
35licensed or registered under chapter 237A, or in an existing
-3-1public or private preschool program, shall be eligible for
2services provided by the school district’s local preschool
3program.
   4b.  Professional development for school district preschool
5teachers shall be addressed in the school district’s
6professional development plan implemented in accordance with
7section 284.6.
8   Sec. 8.  Section 256C.3, subsection 5, Code 2017, is amended
9by striking the subsection.
10   Sec. 9.  Section 256C.4, subsection 1, paragraph d, Code
112017, is amended to read as follows:
   12d.  Preschool foundation aid funding shall not be commingled
13with the other state aid payments made under section 257.16
14to a school district and shall be accounted for by the local
15school district separately from the other state aid payments.
16Preschool foundation aid payments made to school districts
17are miscellaneous income for purposes of chapter 257. A
18school district shall maintain a separate listing within its
19budget for preschool foundation aid payments received and
20expenditures made. A school district shall certify to the
21department of education that preschool
 Preschool foundation aid
22funding received by the school district was shall be used to
23supplement, not supplant, moneys otherwise received and used by
24the school district for preschool programming.
25   Sec. 10.  Section 256C.4, subsection 2, paragraph b, Code
262017, is amended to read as follows:
   27b.  The enrollment count of eligible students shall not
28include a child who is included in the enrollment count
29determined under section 257.6 or a child who is served by
30a program already receiving state or federal funds for the
31purpose of the provision of four-year-old preschool programming
32while the child is being served by the program. Such preschool
33programming includes but is not limited to child development
34assistance programs provided under chapter 256A,
special
35education programs provided under section 256B.9, school ready
-4-1children grant programs and other programs provided under
2chapter 256I, and federal head start programs and the services
3funded by Tit.I of the federal Elementary and Secondary
4Education Act of 1965.
5   Sec. 11.  Section 256C.5, subsection 2, Code 2017, is amended
6to read as follows:
   72.  Preschool foundation aid district amount.
   8a.  For the initial school year for which a school district
9approved to participate in the preschool program receives that
10approval and
implements the preschool program, the funding for
11the preschool foundation aid payable to that school district
12shall be paid from the appropriation made for that school year
13in section 256C.6, Code 2011, or in another appropriation
14made for purposes of this chapter. For that school year, the
15preschool foundation aid payable to the school district is
16the product of the regular program state cost per pupil for
17the school year multiplied by sixty percent of the school
18district’s eligible student enrollment on the date in the
19school year determined by rule.
   20b.  For budget years subsequent to the initial school year
21for which a school district approved to participate in the
22preschool program receives that initial approval and implements
23the preschool program, the funding for the preschool foundation
24aid payable to that school district shall be paid from the
25appropriation made in section 257.16. Continuation of a
26school district’s participation in the preschool program for
27a second or subsequent budget year is subject to the approval
28of the department based upon the school district’s compliance
29with accountability provisions and the department’s on-site
30review of the school district’s implementation of the preschool
31program.

32   Sec. 12.  Section 256C.5, subsection 4, Code 2017, is amended
33by striking the subsection.
34   Sec. 13.  NEW SECTION.  256F.12  Transfer of authority and
35duties.
-5-
   11.  Beginning July 1, 2018, the authority and duties of the
2department of education, the state board, and the director of
3the department of education under this chapter, to the extent
4feasible, shall be transferred to the board of directors of
5the community college serving the merged area in which the
6charter school or innovation zone school, or such proposed
7school, is located. Accordingly, beginning July 1, 2018, all
8references to the department of education, the state board of
9education, and the director of the department of education
10under this chapter or other provisions of law relating to this
11chapter shall mean the board of directors of the community
12college serving the merged area in which the charter school or
13innovation zone school, or such proposed school, is located.
   142.  Any contract entered into by the department of education
15relating to the provisions of this chapter in effect at the
16conclusion of the fiscal year beginning July 1, 2017, shall
17continue in full force and effect pending transfer of such
18contracts to the appropriate community college board of
19directors.
   203.  Any rule, regulation, form, order, or directive
21promulgated by the department of education relative to the
22provisions of this chapter in existence at the conclusion of
23the fiscal year beginning July 1, 2017, shall continue in full
24force and effect.
25   Sec. 14.  NEW SECTION.  256H.4  Transfer of authority and
26duties.
   271.  Beginning July 1, 2018, the authority and duties of the
28department of education and the director of the department
29of education under this chapter shall be transferred to the
30adjutant general of the state. Accordingly, beginning July 1,
312018, all references to the department of education and the
32director of the department of education under this chapter or
33other provisions of law relating to this chapter shall mean
34adjutant general of the state.
   352.  Any contract entered into by the department of education
-6-1relating to the provisions of this chapter in effect at the
2conclusion of the fiscal year beginning July 1, 2017, shall
3continue in full force and effect pending transfer of such
4contracts to the adjutant general of the state.
   53.  Any rule, regulation, form, order, or directive
6promulgated by the department of education relative to the
7provisions of this chapter in existence upon conclusion of the
8fiscal year beginning July 1, 2017, shall continue in full
9force and effect.
10   Sec. 15.  NEW SECTION.  256I.14  Transfer of authority and
11duties.
   121.  Beginning July 1, 2018, the authority and duties of the
13department of education and the director of the department
14of education under this chapter shall be transferred to the
15department of management and the director of the department
16of management. Accordingly, beginning July 1, 2018, all
17references to the department of education or the director of
18the department of education under this chapter or under other
19provisions of law relating to this chapter shall mean the
20department of management and the director of the department of
21management.
   222.  Any moneys remaining in any account or fund under the
23control of the department of education at the conclusion of the
24fiscal year beginning July 1, 2017, relative to the provisions
25of this chapter shall be transferred to the control of the
26department of management for such purposes. Notwithstanding
27section 8.33, the moneys transferred in accordance with this
28subsection shall not revert to the account or fund from which
29appropriated or transferred.
   303.  Any contract entered into by the department of education
31relating to the provisions of this chapter in effect at the
32conclusion of the fiscal year beginning July 1, 2017, shall
33continue in full force and effect pending transfer of such
34contracts to the department of management.
   354.  Any rule, regulation, form, order, or directive
-7-1promulgated by the department of education relative to the
2provisions of this chapter in existence at the conclusion of
3the fiscal year beginning July 1, 2017, shall continue in full
4force and effect until amended, repealed, or supplemented by
5affirmative action of the department of management under the
6duties and powers established in this chapter and under the
7procedure established in subsection 5.
   85.  In regard to updating references and format in the Iowa
9administrative code in order to correspond to the transferring
10of duties of this chapter, the administrative rules coordinator
11and the administrative rules review committee, in consultation
12with the administrative code editor, shall jointly develop a
13schedule for the necessary updating of the Iowa administrative
14code.
15   Sec. 16.  Section 257C.5, subsection 1, Code 2017, is amended
16to read as follows:
   171.  The powers of the authority are vested in and exercised
18by a board consisting of five members, including the treasurer
19of state, the director of the department of education, and the
20director of the department of management, and two three members
21appointed by the governor, subject to confirmation by the
22senate. The state officials may designate representatives to
23serve on the board for them. As far as possible, the governor
24shall appoint members who are knowledgeable or experienced in
25the school systems of this state or in finance.
26   Sec. 17.  NEW SECTION.  258.18  Transfer of authority and
27duties.
   281.  Beginning July 1, 2018, the authority and duties of the
29department of education, the state board of education, and the
30director of the department of education under this chapter
31shall be transferred to the department of workforce development
32and the director of the department of workforce development.
33Accordingly, beginning July 1, 2018, all references to the
34department of education under this chapter and references
35to the department of education under other provisions of
-8-1law relating to this chapter shall mean the department of
2workforce development and all references to the state board
3of education or the director of the department of education
4under this chapter or other provisions of law relating to this
5chapter shall mean the director of the department of workforce
6development.
   72.  Any moneys remaining in any account or fund under the
8control of the department of education at the conclusion
9of the fiscal year beginning July 1, 2017, relative to the
10provisions of this chapter shall be transferred to the control
11of the department of workforce development for such purposes.
12Notwithstanding section 8.33, the moneys transferred in
13accordance with this subsection shall not revert to the account
14or fund from which appropriated or transferred.
   153.  Any contract entered into by the department of education
16relating to the provisions of this chapter in effect at the
17conclusion of the fiscal year beginning July 1, 2017, shall
18continue in full force and effect pending transfer of such
19contracts to the department of workforce development.
   204.  Any rule, regulation, form, order, or directive
21promulgated by the department of education relative to the
22provisions of this chapter in existence at the conclusion of
23the fiscal year beginning July 1, 2017, shall continue in full
24force and effect until amended, repealed, or supplemented by
25affirmative action of the department of workforce development
26under the duties and powers established in this chapter and
27under the procedure established in subsection 5.
   285.  In regard to updating references and format in the Iowa
29administrative code in order to correspond to the transferring
30of duties of this chapter, the administrative rules coordinator
31and the administrative rules review committee, in consultation
32with the administrative code editor, shall jointly develop a
33schedule for the necessary updating of the Iowa administrative
34code.
35   Sec. 18.  NEW SECTION.  259.1A  Transfer of authority and
-9-1duties.
   21.  Beginning July 1, 2018, the authority and duties of the
3department of education, the state board of education, and the
4director of the department of education under this chapter
5shall be transferred to the department of workforce development
6and the director of the department of workforce development.
7Accordingly, beginning July 1, 2018, all references to the
8department of education under this chapter and references
9to the department of education under other provisions of
10law relating to this chapter shall mean the department of
11workforce development and all references to the state board
12of education or the director of the department of education
13under this chapter or other provisions of law relating to this
14chapter shall mean the director of the department of workforce
15development.
   162.  Beginning July 1, 2018, the division of vocational
17rehabilitation services created within the department of
18education under section 259.3 shall be transferred to the
19department of workforce development.
   203.  Any moneys remaining in any account or fund under the
21control of the department of education at the conclusion
22of the fiscal year beginning July 1, 2017, relative to the
23provisions of this chapter shall be transferred to the control
24of the department of workforce development for such purposes.
25Notwithstanding section 8.33, the moneys transferred in
26accordance with this subsection shall not revert to the account
27or fund from which appropriated or transferred.
   284.  Any contract entered into by the department of education
29relating to the provisions of this chapter in effect at the
30conclusion of the fiscal year beginning July 1, 2017, shall
31continue in full force and effect pending transfer of such
32contracts to the department of workforce development.
   335.  Any rule, regulation, form, order, or directive
34promulgated by the department of education relative to the
35provisions of this chapter in existence at the conclusion of
-10-1the fiscal year beginning July 1, 2017, shall continue in full
2force and effect until amended, repealed, or supplemented by
3affirmative action of the department of workforce development
4under the duties and powers established in this chapter and
5under the procedure established in subsection 6.
   66.  In regard to updating references and format in the Iowa
7administrative code in order to correspond to the transferring
8of duties of this chapter, the administrative rules coordinator
9and the administrative rules review committee, in consultation
10with the administrative code editor, shall jointly develop a
11schedule for the necessary updating of the Iowa administrative
12code.
13   Sec. 19.  Section 259A.1, Code 2017, is amended to read as
14follows:
   15259A.1  Tests.
   16The department of education Each board of directors of
17the community college serving the merged area
shall cause to
18be made available for qualified individuals a high school
19equivalency diploma. The diploma shall be issued on the basis
20of satisfactory competence as shown by tests covering all of
21the following: reading, language arts, literacy, mathematics,
22science, and social studies.
23   Sec. 20.  Section 259A.2, unnumbered paragraph 2, Code 2017,
24is amended to read as follows:
   25Application shall be made to a testing center approved
26by the department of education board of directors of the
27community college serving the merged area
, accompanied by an
28application fee in an amount prescribed by the department board
29of directors of the community college
. The test scores shall
30be forwarded by the scorer of the test to the department board
31of directors of the community college
.
32   Sec. 21.  Section 259A.3, Code 2017, is amended to read as
33follows:
   34259A.3  Notice and fee.
   35Any applicant who has achieved the minimum passing standards
-11-1as established by the department, and approved by the state
2board,
 board of directors of the community college shall be
3issued a high school equivalency diploma by the department upon
4payment of an additional amount determined in rules adopted by
5the state board of education
 by the board to cover the actual
6costs of the production and distribution of the diploma. The
7state board of education may also by rule establish a fee for
8the issuance or verification of a transcript which shall be
9based on the actual costs of the production or verification of
10a transcript.

11   Sec. 22.  Section 259A.4, Code 2017, is amended to read as
12follows:
   13259A.4  Use of fees.
   14The fees collected under the provisions of this chapter
15shall be used for the expenses incurred in administering,
16providing test materials, scoring of examinations and issuance
17of high school equivalency diplomas, and shall be disbursed
18on the authorization of the director of the department of
19education
 board of directors of the community college. The
20treasurer of state shall be custodian of the funds paid to the
21department community college and shall disburse the same on
22vouchers audited as provided by law. The unobligated balance
23in such funds at the close of each biennium shall be placed in
24the general fund of the state.
25   Sec. 23.  Section 259A.5, Code 2017, is amended to read as
26follows:
   27259A.5  Rules.
   28The director of the department of education Each board
29of directors of the community college
shall adopt tests,
30definitions of terms, and forms as necessary for the
31administration of this chapter. The state board shall adopt
32rules under chapter 17A to carry out this chapter.

33   Sec. 24.  NEW SECTION.  260C.1A  Transfer of authority and
34duties.
   351.  Beginning July 1, 2018, the authority and duties of the
-12-1department of education, the state board of education, and the
2director of the department of education under this chapter
3shall, to the extent feasible, be transferred to the boards of
4directors of the community colleges serving the merged areas of
5the state. Accordingly, beginning July 1, 2018, all references
6to the department of education, the state board of education,
7and the director of the department of education under this
8chapter and references to the department of education, the
9state board of education, and the director of the department
10of education under other provisions of law relating to this
11chapter shall mean the applicable board of directors of a
12community college.
   132.  Beginning July 1, 2018, transfer of the duties and
14authority of the department shall also include all duties and
15authority of the community colleges division created within the
16department of education under section 260C.6.
   173.  Any moneys remaining in any account or fund under the
18control of the department of education at the conclusion of the
19fiscal year beginning July 1, 2017, relative to the provisions
20of this chapter shall be transferred to the control of the
21applicable board of directors of a community college for such
22purposes. Notwithstanding section 8.33, the moneys transferred
23in accordance with this subsection shall not revert to the
24account or fund from which appropriated or transferred.
   254.  Any contract entered into by the department of education
26relating to the provisions of this chapter in effect at the
27conclusion of the fiscal year beginning July 1, 2017, shall
28continue in full force and effect pending transfer of such
29contracts to the boards of directors of the community colleges.
   305.  Any rule, regulation, form, order, or directive
31promulgated by the department of education relative to the
32provisions of this chapter in existence at the conclusion of
33the fiscal year beginning July 1, 2017, shall continue in full
34force and effect.
35   Sec. 25.  Section 260E.7, subsection 1, Code 2017, is amended
-13-1to read as follows:
   21.  The economic development authority, in consultation with
3the department of education, the department of revenue, and
4the department of workforce development, shall coordinate and
5review the new jobs training program. The economic development
6authority shall adopt, amend, and repeal rules under chapter
717A that the community college will use in developing projects
8with new and expanding industrial new jobs training proposals
9and that the economic development authority shall use to review
10and report on the new jobs training program as required in this
11section.
12   Sec. 26.  Section 260F.3, subsection 5, Code 2017, is amended
13to read as follows:
   145.  Other criteria established by the department authority.
15   Sec. 27.  Section 260F.6B, Code 2017, is amended to read as
16follows:
   17260F.6B  High technology apprenticeship program.
   18The community colleges and the authority are authorized
19to fund high technology apprenticeship programs which comply
20with the requirements specified in section 260C.44 and which
21may include both new and statewide apprenticeship programs.
22Notwithstanding the provisions of section 260F.6, subsection
232, relating to maximum award amounts, moneys allocated to
24the community colleges with high technology apprenticeship
25programs shall be distributed to the community colleges based
26upon contact hours under the programs administered during the
27prior fiscal year as determined by the department of education
28
 authority. The authority shall adopt rules governing this
29section’s operation and participant eligibility.
30   Sec. 28.  Section 260F.7, Code 2017, is amended to read as
31follows:
   32260F.7   Authority to coordinate.
   33The authority, in consultation with the department of
34education and
the department of workforce development, shall
35coordinate the jobs training program. A project shall not be
-14-1funded under this chapter unless the authority approves the
2project. The authority shall adopt rules pursuant to chapter
317A governing the program’s operation and eligibility for
4participation in the program. The authority shall establish
5by rule criteria for determining what constitutes an eligible
6business.
7   Sec. 29.  Section 260H.2, subsection 1, Code 2017, is amended
8to read as follows:
   91.  A pathways for academic career and employment program
10is established to provide funding to community colleges
11for the development of projects in coordination with the
12economic development authority, the department of education,
13 the department of workforce development, local workforce
14development boards established pursuant to section 84A.4, and
15community partners to implement a simplified, streamlined, and
16comprehensive process, along with customized support services,
17to enable eligible participants to acquire effective academic
18and employment training to secure gainful, quality, in-state
19employment.
20   Sec. 30.  Section 260H.2, subsection 2, paragraph a, Code
212017, is amended to read as follows:
   22a.  A pathways for academic career and employment fund
23is created for the community colleges in the state treasury
24to be administered by the department of education economic
25development authority
. The moneys in the pathways for academic
26career and employment fund are appropriated to the department
27of education
 economic development authority for the pathways
28for academic career and employment program.
29   Sec. 31.  Section 260H.8, Code 2017, is amended to read as
30follows:
   31260H.8  Rules.
   32The department of education authority, in consultation with
33the community colleges, the economic development authority,
34 and the department of workforce development, shall adopt rules
35pursuant to chapter 17A and this chapter to implement the
-15-1provisions of this chapter. Local workforce development boards
2established pursuant to section 84A.4 shall be consulted in the
3development and implementation of rules to be adopted pursuant
4to this chapter.
5   Sec. 32.  Section 260I.2, subsection 2, paragraph a, Code
62017, is amended to read as follows:
   7a.  There is established for the community colleges
8a gap tuition assistance fund in the state treasury to
9be administered by the department of education economic
10development authority
. The funds in the gap tuition assistance
11fund are appropriated to the department of education economic
12development authority
for the gap tuition assistance program.
13   Sec. 33.  Section 260I.3, subsection 1, Code 2017, is amended
14to read as follows:
   151.  The department of education, in consultation with the
16 economic development authority, shall adopt rules pursuant to
17this chapter defining eligibility criteria for persons applying
18to receive tuition assistance under this chapter.
19   Sec. 34.  Section 260I.10, Code 2017, is amended to read as
20follows:
   21260I.10  Oversight.
   221.  The department of education economic development
23authority
, in coordination with the community colleges, shall
24establish a steering committee. The steering committee shall
25determine if the performance measures of the gap tuition
26assistance program are being met and shall take necessary steps
27to correct any deficiencies. The steering committee shall meet
28at least quarterly to evaluate and monitor the performance of
29the gap tuition assistance program.
   302.  The department of education economic development
31authority
, in coordination with the community colleges,
32shall develop a common intake tracking system that shall be
33implemented consistently by each participating community
34college.
   353.  The department of education economic development
-16-1authority
shall coordinate statewide oversight, evaluation, and
2reporting efforts for the gap tuition assistance program.
3   Sec. 35.  Section 260I.11, Code 2017, is amended to read as
4follows:
   5260I.11  Rules.
   6The department of education economic development authority,
7in consultation with the economic development authority and the
8 community colleges, shall adopt rules pursuant to chapter 17A
9and this chapter to implement the provisions of this chapter.
10   Sec. 36.  Section 261.1, subsection 2, paragraph b, Code
112017, is amended by striking the paragraph.
12   Sec. 37.  NEW SECTION.  261.8  Transfer of authority and
13duties.
   141.  Beginning July 1, 2018, the authority and duties of the
15department of education, the state board of education, and the
16director of the department of education under this chapter
17shall be transferred to the college student aid commission.
18Accordingly, beginning July 1, 2018, all references to the
19department of education or the director of the department of
20education under this chapter and references to the department
21of education or the director of the department of education
22under other provisions of law relating to this chapter shall
23mean the college student aid commission.
   242.  Any moneys remaining in any account or fund under the
25control of the department of education at the conclusion
26of the fiscal year beginning July 1, 2017, relative to the
27provisions of this chapter shall be transferred to the control
28of the college student aid commission for such purposes.
29Notwithstanding section 8.33, the moneys transferred in
30accordance with this subsection shall not revert to the account
31or fund from which appropriated or transferred.
   323.  Any contract entered into by the department of education
33relating to the provisions of this chapter in effect at the
34conclusion of the fiscal year beginning July 1, 2017, shall
35continue in full force and effect pending transfer of such
-17-1contracts to the college student aid commission.
   24.  Any rule, regulation, form, order, or directive
3promulgated by the department of education relative to the
4provisions of this chapter in existence at the conclusion of
5the fiscal year beginning July 1, 2017, shall continue in full
6force and effect until amended, repealed, or supplemented by
7affirmative action of the college student aid commission under
8the duties and powers established in this chapter and under the
9procedure established in subsection 5.
   105.  In regard to updating references and format in the Iowa
11administrative code in order to correspond to the transferring
12of duties of this chapter, the administrative rules coordinator
13and the administrative rules review committee, in consultation
14with the administrative code editor, shall jointly develop a
15schedule for the necessary updating of the Iowa administrative
16code.
17   Sec. 38.  NEW SECTION.  261E.1A  Transfer of authority and
18duties.
   191.  Beginning July 1, 2018, the authority and duties of
20the department of education, the state board of education,
21and the director of the department of education under this
22chapter shall be transferred to the state board of regents.
23Accordingly, beginning July 1, 2018, all references to the
24department of education, the state board of education, or the
25director of the department of education under this chapter
26and references to the department of education, state board of
27education, or director of the department of education under
28other provisions of law relating to this chapter shall mean the
29state board of regents.
   302.  Any moneys remaining in any account or fund under the
31control of the department of education at the conclusion of the
32fiscal year beginning July 1, 2017, relative to the provisions
33of this chapter shall be transferred to the control of the
34state board of regents for such purposes. Notwithstanding
35section 8.33, the moneys transferred in accordance with this
-18-1subsection shall not revert to the account or fund from which
2appropriated or transferred.
   33.  Any contract entered into by the department of education
4relating to the provisions of this chapter in effect at the
5conclusion of the fiscal year beginning July 1, 2017, shall
6continue in full force and effect pending transfer of such
7contracts to the state board of regents.
   84.  Any rule, regulation, form, order, or directive
9promulgated by the department of education relative to the
10provisions of this chapter in existence at the conclusion of
11the fiscal year beginning July 1, 2017, shall continue in full
12force and effect until amended, repealed, or supplemented by
13affirmative action of the state board of regents under the
14duties and powers established in this chapter and under the
15procedure established in subsection 5.
   165.  In regard to updating references and format in the Iowa
17administrative code in order to correspond to the transferring
18of duties of this chapter, the administrative rules coordinator
19and the administrative rules review committee, in consultation
20with the administrative code editor, shall jointly develop a
21schedule for the necessary updating of the Iowa administrative
22code.
23   Sec. 39.  Section 262.9, subsection 27, Code 2017, is amended
24to read as follows:
   2527.  Explore, in conjunction with the department
26of education,
the need for coordination between school
27districts, area education agencies, state board of regents
28institutions, and community colleges for purposes of delivery
29of courses, use of telecommunications, transportation, and
30other similar issues. Coordination may include but is not
31limited to coordination of calendars, programs, schedules, or
32telecommunications emissions. The state board shall develop
33recommendations as necessary, which shall be submitted in a
34report to the general assembly on a timely basis.
35   Sec. 40.  Section 262.9, subsection 33, unnumbered paragraph
-19-11, Code 2017, is amended to read as follows:
   2In consultation with the state board of education, establish
3
 Establish and enter into a collective statewide articulation
4agreement with the community colleges established pursuant to
5chapter 260C, which shall provide for the seamless transfer
6of academic credits from a completed associate of arts or
7associate of science degree program offered by a community
8college to a baccalaureate degree program offered by an
9institution of higher education governed by the board. The
10board shall also do the following:
11   Sec. 41.  Section 262.9, subsection 33, paragraph i, Code
122017, is amended to read as follows:
   13i.  Prepare, jointly with the department of education and
14 the liaison advisory committee on transfer students, and submit
15by January 15 annually to the general assembly, an update on
16the articulation efforts and activities implemented by the
17community colleges and the institutions of higher education
18governed by the board.
19   Sec. 42.  Section 262.71, subsection 9, Code 2017, is amended
20by striking the subsection.
21   Sec. 43.  Section 266.39C, subsection 2, paragraph a,
22subparagraph (5), Code 2017, is amended to read as follows:
   23(5)  One representative of community colleges, appointed by
24the state board of education governor.
25   Sec. 44.  Section 266.39C, subsection 6, Code 2017, is
26amended to read as follows:
   276.  The Iowa energy center shall cooperate with the state
28board of education in developing
 develop a curriculum which
29promotes energy efficiency and conservation.
30   Sec. 45.  Section 272.1, subsection 4, Code 2017, is amended
31by striking the subsection.
32   Sec. 46.  NEW SECTION.  272.1A  Transfer of authority and
33duties.
   341.  Beginning July 1, 2018, the authority and duties of the
35department of education, the state board of education, and the
-20-1director of the department of education under this chapter
2shall be transferred to the board of educational examiners.
3Accordingly, beginning July 1, 2018, all references to the
4department of education, the state board of education, or the
5director of the department of education under this chapter
6and references to the department of education, state board of
7education, or director of the department of education under
8other provisions of law relating to this chapter shall mean the
9board of educational examiners.
   102.  Any moneys remaining in any account or fund under the
11control of the department of education at the conclusion
12of the fiscal year beginning July 1, 2017, relative to the
13provisions of this chapter shall be transferred to the control
14of the board of educational examiners for such purposes.
15Notwithstanding section 8.33, the moneys transferred in
16accordance with this subsection shall not revert to the account
17or fund from which appropriated or transferred.
   183.  Any contract entered into by the department of education
19relating to the provisions of this chapter in effect at the
20conclusion of the fiscal year beginning July 1, 2017, shall
21continue in full force and effect pending transfer of such
22contracts to the board of educational examiners.
23   Sec. 47.  Section 272.3, subsection 1, unnumbered paragraph
241, Code 2017, is amended to read as follows:
   25The board of educational examiners consists of twelve
26members. Two must be members of the general public, one
27must be the director of the department of education or the
28director’s designee,
and the remaining nine ten members must be
29licensed practitioners. One of the public members shall have
30served on a school board. The public members shall never have
31held a practitioner’s license, but shall have a demonstrated
32interest in education. The nine ten practitioners shall be
33selected from the following areas and specialties of the
34teaching profession:
35   Sec. 48.  Section 272.3, subsection 2, Code 2017, is amended
-21-1to read as follows:
   22.  A majority of the licensed practitioner members shall
3be nonadministrative practitioners. Four of the members shall
4be administrators. Membership of the board shall comply with
5the requirements of sections 69.16 and 69.16A. A quorum of the
6board shall consist of six members. Members shall elect a
7chairperson of the board. Members, except for the director of
8the department of education or the director’s designee,
shall
9be appointed by the governor subject to confirmation by the
10senate.
11   Sec. 49.  Section 272.4, subsection 1, unnumbered paragraph
121, Code 2017, is amended to read as follows:
   13Members, except for the director of the department of
14education or the director’s designee,
shall be appointed to
15serve staggered terms of four years. A member shall not serve
16more than two consecutive terms, except for the director of the
17department of education or the director’s designee, who shall
18serve until the director’s term of office expires
. A member of
19the board, except for the two public members and the director
20of the department of education or the director’s designee
,
21shall hold a valid practitioner’s license during the member’s
22term of office. A vacancy exists when any of the following
23occur:
24   Sec. 50.  Section 272.25, subsections 3, 4, and 8, Code 2017,
25are amended to read as follows:
   263.  A requirement that the program include instruction
27in skills and strategies to be used in classroom management
28of individuals, and of small and large groups, under
29varying conditions;, skills for communicating and working
30constructively with pupils, teachers, administrators, and
31parents;, preparation in reading theory, knowledge, strategies,
32and approaches, and for integrating literacy instruction
33into content areas in accordance with section 256.16; and
34skills for understanding the role of the board of education
35and the functions of other education agencies in the state.
-22-1The requirement shall be based upon recommendations of the
2department of education after consultation with teacher
3education faculty members in colleges and universities
.
   44.  A requirement that prescribes minimum experiences and
5responsibilities to be accomplished during the student teaching
6experience by the student teacher and by the cooperating
7teacher based upon recommendations of the department of
8education after consultation with teacher education faculty
9members in colleges and universities
. The student teaching
10experience shall include opportunities for the student
11teacher to become knowledgeable about the Iowa teaching
12standards, including a mock evaluation performed by the
13cooperating teacher. The mock evaluation shall not be used as
14an assessment tool by the practitioner preparation program.
15The student teaching experience shall consist of interactive
16experiences involving the college or university personnel, the
17student teacher, the cooperating teacher, and administrative
18personnel from the cooperating teacher’s school district.
   198.  A requirement that an approved practitioner preparation
20institution submit evidence that the college or department of
21education
is communicating with other colleges or departments
22in the institution so that practitioner preparation students
23may integrate teaching methodology with subject matter areas
24of specialization.
25   Sec. 51.  NEW SECTION.  273.1A  Transfer of authority and
26duties.
   271.  Beginning July 1, 2018, the authority and duties of
28the department of education, the state board of education,
29and the director of the department of education under this
30chapter shall, to the extent feasible, be transferred to the
31area education agency boards of directors in this state.
32Accordingly, beginning July 1, 2018, all references to the
33department of education, the state board of education, and the
34director of the department of education under this chapter and
35references to the department of education, the state board of
-23-1education, and the director of the department of education
2under other provisions of law relating to this chapter shall
3mean the applicable area education agency board of directors.
   42.  Any rule, regulation, form, order, or directive
5promulgated by the department of education relative to the
6provisions of this chapter in existence at the conclusion of
7the fiscal year beginning July 1, 2017, shall continue in full
8force and effect.
9   Sec. 52.  Section 273.2, subsection 5, unnumbered paragraph
101, Code 2017, is amended to read as follows:
   11The area education agency board may provide for the
12following programs and services to local school districts, and
13at the request of local school districts to providers of child
14development services who have received grants under chapter
15256A from the child development coordinating council,
within
16the limits of funds available:
17   Sec. 53.  NEW SECTION.  274.1A  Transfer of authority and
18duties.
   191.  Beginning July 1, 2018, the authority and duties of the
20department of education and the director of the department of
21education under this chapter shall, to the extent feasible, be
22transferred to the area education agency boards of directors
23in this state. Accordingly, beginning July 1, 2018, all
24references to the department of education and the director of
25the department of education under this chapter and references
26to the department of education and the director of the
27department of education under other provisions of law relating
28to this chapter shall mean the applicable area education agency
29board of directors.
   302.  Any rule, regulation, form, order, or directive
31promulgated by the department of education or the director
32of the department of education relative to the provisions of
33this chapter in existence at the conclusion of the fiscal
34year beginning July 1, 2017, shall continue in full force and
35effect.
-24-
1   Sec. 54.  NEW SECTION.  275.1A  Transfer of authority and
2duties.
   31.  Beginning July 1, 2018, the authority and duties of
4the department of education, the state board of education,
5and the director of the department of education under this
6chapter shall, to the extent feasible, be transferred to the
7area education agency boards of directors in this state.
8Accordingly, beginning July 1, 2018, all references to the
9department of education, the state board of education, and the
10director of the department of education under this chapter and
11references to the department of education, the state board of
12education, and the director of the department of education
13under other provisions of law relating to this chapter shall
14mean the applicable area education agency board of directors.
   152.  Any rule, regulation, form, order, or directive
16promulgated by the department of education, the state board
17of education, or the director of the department of education
18relative to the provisions of this chapter in existence at the
19conclusion of the fiscal year beginning July 1, 2017, shall
20continue in full force and effect.
21   Sec. 55.  Section 276.3, subsections 5 and 9, Code 2017, are
22amended by striking the subsections.
23   Sec. 56.  Section 279.51, subsection 1, unnumbered paragraph
241, Code 2017, is amended to read as follows:
   25There is appropriated from the general fund of the state
26to the department of education management for the fiscal year
27beginning July 1, 2007, and each succeeding fiscal year, the
28sum of twelve million six hundred six thousand one hundred
29ninety-six dollars. The moneys shall be allocated as follows:
30   Sec. 57.  Section 279.51, subsection 1, paragraphs b and d,
31Code 2017, are amended by striking the paragraphs.
32   Sec. 58.  Section 279.51, subsection 2, Code 2017, is amended
33by striking the subsection.
34   Sec. 59.  NEW SECTION.  279.70  Transfer of authority and
35duties.
-25-
   11.  Beginning July 1, 2018, the authority and duties of
2the department of education, the state board of education,
3and the director of the department of education under this
4chapter, to the extent feasible, shall be transferred to the
5boards of directors for the respective school districts in the
6state. Accordingly, beginning July 1, 2018, all references to
7the department of education, the state board of education, and
8the director of the department of education under this chapter
9and references to the department of education, the state board
10of education, and the director of the department of education
11under other provisions of law relating to this chapter shall
12mean the applicable board of directors of the school district.
   132.  Any rule, regulation, form, order, or directive
14promulgated by the department of education, the state board
15of education, or the director of the department of education
16relative to the provisions of this chapter in existence at the
17conclusion of the fiscal year beginning July 1, 2017, shall
18continue in full force and effect.
19   Sec. 60.  NEW SECTION.  280.1A  Transfer of authority and
20duties.
   211.  Beginning July 1, 2018, the authority and duties of
22the department of education, the state board of education,
23and the director of the department of education under this
24chapter, to the extent feasible, shall be transferred to the
25boards of directors for the respective school districts in the
26state. Accordingly, beginning July 1, 2018, all references to
27the department of education, the state board of education, and
28the director of the department of education under this chapter
29and references to the department of education, the state board
30of education, and the director of the department of education
31under other provisions of law relating to this chapter shall
32mean the applicable board of directors of the school district.
   332.  Any rule, regulation, form, order, or directive
34promulgated by the department of education, the state board
35of education, or the director of the department of education
-26-1relative to the provisions of this chapter in existence at the
2conclusion of the fiscal year beginning July 1, 2017, shall
3continue in full force and effect.
4   Sec. 61.  NEW SECTION.  282.1A  Transfer of authority and
5duties.
   61.  Beginning July 1, 2018, the authority and duties of
7the department of education, the state board of education,
8and the director of the department of education under this
9chapter, to the extent feasible, shall be transferred to the
10boards of directors for the respective school districts in the
11state. Accordingly, beginning July 1, 2018, all references to
12the department of education, the state board of education, and
13the director of the department of education under this chapter
14and references to the department of education, the state board
15of education, and the director of the department of education
16under other provisions of law relating to this chapter shall
17mean the applicable board of directors of the school district.
   182.  Any rule, regulation, form, order, or directive
19promulgated by the department of education, the state board
20of education, or the director of the department of education
21relative to the provisions of this chapter in existence at the
22conclusion of the fiscal year beginning July 1, 2017, shall
23continue in full force and effect.
24   Sec. 62.  Section 282.18, subsections 5 and 13, Code 2017,
25are amended to read as follows:
   265.  Open enrollment applications filed after March 1
27of the preceding school year that do not qualify for good
28cause as provided in subsection 4 shall be subject to the
29approval of the board of the resident district and the board
30of the receiving district. The parent or guardian shall send
31notification to the district of residence and the receiving
32district that the parent or guardian seeks to enroll the
33parent’s or guardian’s child in the receiving district. A
34decision of either board to deny an application filed under
35this subsection involving repeated acts of harassment of the
-27-1student or serious health condition of the student that the
2resident district cannot adequately address is subject to
3appeal under section 290.1. The state board shall exercise
4broad discretion to achieve just and equitable results that are
5in the best interest of the affected child or children.

   613.  If a request under this section is for transfer to a
7laboratory school, as described in chapter 265, the student,
8who is the subject of the request, shall not be included in
9the basic enrollment of the student’s district of residence,
10and the laboratory school shall report the enrollment of the
11student directly to the department of education management,
12unless the number of students from the district attending the
13laboratory school during the current school year, as a result
14of open enrollment under this section, exceeds the number of
15students enrolled in the laboratory school from that district
16during the 1989-1990 school year. If the number of students
17enrolled in the laboratory school from a district during the
18current year exceeds the number of students enrolled from that
19district during the 1989-1990 school year, those students who
20represent the difference between the current and the 1988-1989
21school year enrollment figures shall be included in the basic
22enrollment of the students’ districts of residence and the
23districts shall retain any moneys received as a result of the
24inclusion of the student in the district enrollment. The total
25number of students enrolled at a laboratory school during a
26school year shall not exceed six hundred seventy students. The
27regents institution operating the laboratory school and the
28board of directors of the school district in the community
29in which the regents institution is located shall develop
30a student transfer policy designed to protect and promote
31the quality and integrity of the teacher education program
32at the laboratory school, the viability of the education
33program of the local school district in which the regents
34institution is located, and to indicate the order in which and
35reasons why requests to transfer to a laboratory school shall
-28-1be considered. A laboratory school may deny a request for
2transfer under the policy. A denial of a request to transfer
3under this subsection is not subject to appeal under section
4290.1.

5   Sec. 63.  Section 282.18, subsection 15, Code 2017, is
6amended by striking the subsection.
7   Sec. 64.  Section 283.1, Code 2017, is amended to read as
8follows:
   9283.1  Federal funds accepted.
   10The director of the department of education management
11 is the “state educational authority” for the purpose of
12accepting and administering funds appropriated by Congress for
13educational purposes and the funds shall be deposited with the
14treasurer of state and disbursed through the department of
15administrative services on vouchers audited as provided by law.
16When state matching funds are required as a condition to the
17acceptance of federal funds, the director of the department
18of education management may make expenditures for matching
19only from funds provided by the legislature for that purpose.
20However, when federal funds may be matched with expenditures
21from funds appropriated for the general operation of the
22department of education management, this may be done with the
23approval of the legislative council.
24   Sec. 65.  NEW SECTION.  283A.1A  Transfer of authority and
25duties.
   261.  Beginning July 1, 2018, the authority and duties of
27the department of education, the state board of education,
28and the director of the department of education under this
29chapter, to the extent feasible, shall be transferred to the
30boards of directors for the respective school districts in the
31state. Accordingly, beginning July 1, 2018, all references to
32the department of education, the state board of education, and
33the director of the department of education under this chapter
34and references to the department of education, the state board
35of education, and the director of the department of education
-29-1under other provisions of law relating to this chapter shall
2mean the applicable board of directors of the school district.
   32.  Any rule, regulation, form, order, or directive
4promulgated by the department of education, the state board
5of education, or the director of the department of education
6relative to the provisions of this chapter in existence at the
7conclusion of the fiscal year beginning July 1, 2017, shall
8continue in full force and effect.
9   Sec. 66.  Section 283A.3, Code 2017, is amended to read as
10follows:
   11283A.3  Expenditure of federal funds.
   12The director of the department of education management shall
13accept and direct the disbursement of funds appropriated by any
14Act of Congress and appropriated to the state of Iowa for use
15in connection with school breakfast or lunch programs. The
16director shall deposit the funds with the treasurer of the
17state of Iowa, who shall make disbursements upon the direction
18of the director.
19   Sec. 67.  NEW SECTION.  284.1A  Transfer of authority and
20duties.
   211.  Beginning July 1, 2018, the authority and duties of
22the department of education, the state board of education,
23and the director of the department of education under this
24chapter, to the extent feasible, shall be transferred to the
25boards of directors for the respective school districts in the
26state. Accordingly, beginning July 1, 2018, all references to
27the department of education, the state board of education, and
28the director of the department of education under this chapter
29and references to the department of education, the state board
30of education, and the director of the department of education
31under other provisions of law relating to this chapter shall
32mean the applicable board of directors of the school district.
   332.  Any rule, regulation, form, order, or directive
34promulgated by the department of education, the state board
35of education, or the director of the department of education
-30-1relative to the provisions of this chapter in existence at the
2conclusion of the fiscal year beginning July 1, 2017, shall
3continue in full force and effect.
4   Sec. 68.  NEW SECTION.  284A.1A  Transfer of authority and
5duties.
   61.  Beginning July 1, 2018, the authority and duties of
7the department of education, the state board of education,
8and the director of the department of education under this
9chapter, to the extent feasible, shall be transferred to the
10boards of directors for the respective school districts in the
11state. Accordingly, beginning July 1, 2018, all references to
12the department of education, the state board of education, and
13the director of the department of education under this chapter
14and references to the department of education, the state board
15of education, and the director of the department of education
16under other provisions of law relating to this chapter shall
17mean the applicable board of directors of the school district.
   182.  Any rule, regulation, form, order, or directive
19promulgated by the department of education, the state board
20of education, or the director of the department of education
21relative to the provisions of this chapter in existence at the
22conclusion of the fiscal year beginning July 1, 2017, shall
23continue in full force and effect.
24   Sec. 69.  NEW SECTION.  285.7  Transfer of authority and
25duties.
   261.  Beginning July 1, 2018, the authority and duties of
27the department of education, the state board of education,
28and the director of the department of education under this
29chapter, to the extent feasible, shall be transferred to the
30boards of directors for the respective school districts in the
31state. Accordingly, beginning July 1, 2018, all references to
32the department of education, the state board of education, and
33the director of the department of education under this chapter
34and references to the department of education, the state board
35of education, and the director of the department of education
-31-1under other provisions of law relating to this chapter shall
2mean the applicable board of directors of the school district.
   32.  Any rule, regulation, form, order, or directive
4promulgated by the department of education, the state board
5of education, or the director of the department of education
6relative to the provisions of this chapter in existence at the
7conclusion of the fiscal year beginning July 1, 2017, shall
8continue in full force and effect.
9   Sec. 70.  Section 291.11, Code 2017, is amended to read as
10follows:
   11291.11  Officers reported.
   12The secretary shall report to the director of the department
13of education management, the county auditor, and county
14treasurer the name and post office address of the president,
15treasurer and secretary of the board as soon as practicable
16after the qualification of each.
17   Sec. 71.  NEW SECTION.  292.1A  Transfer of authority and
18duties.
   191.  Beginning July 1, 2018, the authority and duties of the
20department of education under this chapter shall be transferred
21to the department of revenue. Accordingly, beginning July 1,
222018, all references to the department of education under this
23chapter and references to the department of education under
24other provisions of law relating to this chapter shall mean the
25department of revenue.
   262.  Any moneys remaining in any account or fund under the
27control of the department of education at the conclusion of the
28fiscal year beginning July 1, 2017, relative to the provisions
29of this chapter shall be transferred to the control of the
30department of revenue for such purposes. Notwithstanding
31section 8.33, the moneys transferred in accordance with this
32subsection shall not revert to the account or fund from which
33appropriated or transferred.
   343.  Any contract entered into by the department of education
35relating to the provisions of this chapter in effect at the
-32-1conclusion of the fiscal year beginning July 1, 2017, shall
2continue in full force and effect pending transfer of such
3contracts to the department of revenue.
   44.  Any rule, regulation, form, order, or directive
5promulgated by the department of education relative to the
6provisions of this chapter in existence at the conclusion of
7the fiscal year beginning July 1, 2017, shall continue in full
8force and effect until amended, repealed, or supplemented by
9affirmative action of the department of revenue under the
10duties and powers established in this chapter and under the
11procedure established in subsection 5.
   125.  In regard to updating references and format in the Iowa
13administrative code in order to correspond to the transferring
14of duties of this chapter, the administrative rules coordinator
15and the administrative rules review committee, in consultation
16with the administrative code editor, shall jointly develop a
17schedule for the necessary updating of the Iowa administrative
18code.
19   Sec. 72.  Section 294.5, Code 2017, is amended to read as
20follows:
   21294.5  Reports.
   22The teacher shall file with the school superintendent and
23the director of the department of education
such reports and in
24such manner as may be required.
25   Sec. 73.  Section 296.3, Code 2017, is amended to read as
26follows:
   27296.3  Election called.
   28Within ten days of receipt of a petition filed under section
29296.2, the president of the board of directors shall call a
30meeting of the board. The meeting shall be held within thirty
31days after the petition was received. At the meeting, the
32board shall call the election, fixing the time of the election,
33which may be at the time and place of holding the regular
34school election. However, if the board determines by unanimous
35vote that the proposition or propositions requested by a
-33-1petition to be submitted at an election are grossly unrealistic
2or contrary to the needs of the school district, no election
3shall be called. If more than one petition has been received
4by the time the board meets to consider the petition triggering
5the meeting, the board shall act upon the petitions in the
6order they were received at the meeting called to consider the
7initial petition. The decision of the board may be appealed to
8the state board of education as provided in chapter 290.
The
9president shall notify the county commissioner of elections of
10the time of the election.
11   Sec. 74.  NEW SECTION.  297.37  Transfer of authority and
12duties.
   131.  Beginning July 1, 2018, the authority and duties of the
14department of education and the director of the department
15of education under this chapter shall be transferred to the
16department of administrative services and the director of the
17department of administrative services. Accordingly, beginning
18July 1, 2018, all references to the department of education
19and the director of the department of education under this
20chapter and references to the department of education and the
21director of the department of education under other provisions
22of law relating to this chapter shall mean the department of
23administrative services or the director of the department of
24administrative services.
   252.  Any rule, regulation, form, order, or directive
26promulgated by the department of education or the director
27of the department of education relative to the provisions of
28this chapter in existence at the conclusion of the fiscal
29year beginning July 1, 2017, shall continue in full force and
30effect.
31   Sec. 75.  Section 298A.8, Code 2017, is amended to read as
32follows:
   33298A.8  Student activity fund.
   34The student activity fund is a special revenue fund. A
35student activity fund must be established in any school
-34-1corporation receiving money from student-related activities
2such as admissions, activity fees, student dues, student
3fund-raising events, or other student-related cocurricular or
4extracurricular activities. Moneys in this fund shall be used
5to support only the cocurricular program defined in department
6of education administrative rules
.
7   Sec. 76.  NEW SECTION.  299.25  Transfer of authority and
8duties.
   91.  Beginning July 1, 2018, the authority and duties of
10the department of education, the state board of education,
11and the director of the department of education under this
12chapter, to the extent feasible, shall be transferred to the
13boards of directors for the respective school districts in the
14state. Accordingly, beginning July 1, 2018, all references to
15the department of education, the state board of education, and
16the director of the department of education under this chapter
17and references to the department of education, the state board
18of education, and the director of the department of education
19under other provisions of law relating to this chapter shall
20mean the applicable board of directors of the school district.
   212.  Any rule, regulation, form, order, or directive
22promulgated by the department of education, the state board
23of education, or the director of the department of education
24relative to the provisions of this chapter in existence at the
25conclusion of the fiscal year beginning July 1, 2017, shall
26continue in full force and effect.
27   Sec. 77.  NEW SECTION.  299A.1A  Transfer of authority and
28duties.
   291.  Beginning July 1, 2018, the authority and duties of
30the department of education, the state board of education,
31and the director of the department of education under this
32chapter, to the extent feasible, shall be transferred to the
33boards of directors for the respective school districts in the
34state. Accordingly, beginning July 1, 2018, all references to
35the department of education, the state board of education, and
-35-1the director of the department of education under this chapter
2and references to the department of education, the state board
3of education, and the director of the department of education
4under other provisions of law relating to this chapter shall
5mean the applicable board of directors of the school district.
   62.  Any rule, regulation, form, order, or directive
7promulgated by the department of education, the state board
8of education, or the director of the department of education
9relative to the provisions of this chapter in existence at the
10conclusion of the fiscal year beginning July 1, 2017, shall
11continue in full force and effect.
12   Sec. 78.  NEW SECTION.  301.1A  Transfer of authority and
13duties.
   141.  Beginning July 1, 2018, the authority and duties of
15the department of education, the state board of education,
16and the director of the department of education under this
17chapter, to the extent feasible, shall be transferred to the
18boards of directors for the respective school districts in the
19state. Accordingly, beginning July 1, 2018, all references to
20the department of education, the state board of education, and
21the director of the department of education under this chapter
22and references to the department of education, the state board
23of education, and the director of the department of education
24under other provisions of law relating to this chapter shall
25mean the applicable board of directors of the school district.
   262.  Any rule, regulation, form, order, or directive
27promulgated by the department of education, the state board
28of education, or the director of the department of education
29relative to the provisions of this chapter in existence at the
30conclusion of the fiscal year beginning July 1, 2017, shall
31continue in full force and effect.
32   Sec. 79.  REPEAL.  Sections 260C.6, 276.4, and 291.10, Code
332017, are repealed.
34   Sec. 80.  REPEAL.  Chapters 256, 256A, 256G, and 290, Code
352017, are repealed.
-36-
1   Sec. 81.  EFFECTIVE DATE.  This division of this Act takes
2effect July 1, 2018.
3DIVISION II
4CORRESPONDING AMENDMENTS LEGISLATION
5   Sec. 82.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional
6legislation is required to fully implement division I of this
7Act. The director of the department of education shall, in
8compliance with section 2.16, prepare draft legislation for
9submission to the legislative services agency, as necessary,
10to implement the transition and elimination of authority and
11duties under division I of this Act and to implement the
12transition and elimination of authority and duties under other
13provisions of law including but not limited to the duties and
14authority of the department of education, the state board of
15education, the director of the department of education, and any
16division, commission, or subunit of such entities or offices
17under chapters 7A, 7E, 8A, 8B, 8D, 8F, 11, 12, 15, 15H, 16, 19B,
1822, 48A, 68B, 73, 80E, 84A, 85, 96, 99B, 125, 135, 139A, 141A,
19142A, 154B, 154F, 161A, 190A, 216A, 218, 225C, 232, 234, 237,
20237A, 237C, 239B, 241, 249A, 257, 261B, 321, 321J, 322, 350,
21423E, 423F, 455A, 455E, 473, 514I, 714, and 904.
22DIVISION III
23EDUCATION FINANCE AND
24EDUCATION SAVINGS GRANTS
25   Sec. 83.  Section 8.6, Code 2017, is amended by adding the
26following new subsection:
27   NEW SUBSECTION.  16.  Education savings grant
28applications.
  Adopt rules relating to applications for an
29education savings grant pursuant to section 257.11B, including
30application processing timelines, and required information for
31submission by a parent or guardian.
32   Sec. 84.  NEW SECTION.  257.1A  Transfer of authority and
33duties.
   341.  Beginning July 1, 2018, the authority and duties of
35the department of education, the state board of education,
-37-1and the director of the department of education under this
2chapter shall be transferred to the department of management
3and the director of the department of management. Accordingly,
4beginning July 1, 2018, all references to the department of
5education under this chapter and references to the department
6of education under other provisions of law relating to this
7chapter shall mean the department of management and all
8references to the state board of education or the director
9of the department of education under this chapter or other
10provisions of law relating to this chapter shall mean the
11director of the department of management.
   122.  Any moneys remaining in any account or fund under the
13control of the department of education at the conclusion of the
14fiscal year beginning July 1, 2017, relative to the provisions
15of this chapter shall be transferred to the control of the
16department of management for such purposes. Notwithstanding
17section 8.33, the moneys transferred in accordance with this
18subsection shall not revert to the account or fund from which
19appropriated or transferred.
   203.  Any contract entered into by the department of education
21relating to the provisions of this chapter in effect at the
22conclusion of the fiscal year beginning July 1, 2017, shall
23continue in full force and effect pending transfer of such
24contracts to the department of management.
   254.  Any rule, regulation, form, order, or directive
26promulgated by the department of education relative to the
27provisions of this chapter in existence at the conclusion of
28the fiscal year beginning July 1, 2017, shall continue in full
29force and effect until amended, repealed, or supplemented by
30affirmative action of the department of management under the
31duties and powers established in this chapter and under the
32procedure established in subsection 5.
   335.  In regard to updating references and format in the Iowa
34administrative code in order to correspond to the transferring
35of duties of this chapter, the administrative rules coordinator
-38-1and the administrative rules review committee, in consultation
2with the administrative code editor, shall jointly develop a
3schedule for the necessary updating of the Iowa administrative
4code.
5   Sec. 85.  NEW SECTION.  257.11B  Education savings grant
6program.
   71.  Pupils eligible to enroll in grades kindergarten through
8twelve or eligible to participate in a preschool program under
9chapter 256C and attending a nonpublic school, receiving
10competent private instruction under chapter 299A, or receiving
11private preschool instruction shall be eligible to receive an
12education savings grant in the manner provided in this section
13for school years beginning on or after July 1, 2018. Education
14savings grants shall be made available to parents and guardians
15in the manner authorized under subsection 4, paragraph “c”, for
16the payment of qualified educational expenses as provided in
17this section.
   182.  a.  (1)  By January 31 preceding the school year for
19which the education savings grant is requested, the parent
20or guardian of the pupil requesting to receive an education
21savings grant shall submit an application to the department of
22management, on application forms developed by the department of
23management, indicating that the parent or guardian intends to
24enroll the pupil in a nonpublic school, place the pupil under
25competent private instruction under chapter 299A, or provide
26private preschool instruction.
   27(2)  In addition to such information deemed appropriate by
28the department of management, the application shall require
29certification from the nonpublic school of the pupil’s
30enrollment for the following school year or a statement
31indicating the parent or guardian’s intent to place the pupil
32under competent private instruction or private preschool
33instruction for the following school year.
   34b.  By March 1 preceding the school year for which the
35education savings grant is requested, the department of
-39-1management shall notify the parent or guardian of each pupil
2who is approved to receive an education savings grant and the
3amount of the grant.
   4c.  Education savings grants shall only be approved for one
5school year and applications must be submitted annually for
6education savings grants in subsequent school years.
   73.  a.   The department of management shall assign each
8pupil an education savings grant in an amount equal to the
9difference between eighty-seven and five-tenths percent of
10the regular program state cost per pupil and the statewide
11average foundation property tax per pupil for the same school
12year. However, for a pupil that is eligible to participate
13in a preschool program under chapter 256C, the amount of the
14grant shall be an amount equal to fifty percent of the regular
15program state cost per pupil for the same school year.
   16b.  The department of management shall on July 1 following
17the determination of the amount of the education savings grant
18for each approved pupil transfer such amounts to the pupil’s
19account in the education savings grant fund established under
20subsection 4. Such amount shall be available to the pupil’s
21parent or guardian in the manner authorized under subsection
224, paragraph “c”, for the payment of qualified educational
23expenses incurred by such persons for the pupil during that
24school year.
   254.  An education savings grant fund is created in the state
26treasury under the control of the department of management
27consisting of moneys appropriated to the department of
28management for the purpose of providing education savings
29grants under this section. For the fiscal year commencing July
301, 2018, and each succeeding fiscal year, there is appropriated
31from the general fund of the state to the department of
32management to be credited to the fund the amount necessary
33to pay all education savings grants approved for that fiscal
34year. The director of the department of management has all
35powers necessary to carry out and effectuate the purposes,
-40-1objectives, and provisions of this section pertaining to the
2fund, including the power to do all of the following:
   3a.  Make and enter into contracts necessary for the
4administration of the fund.
   5b.  Procure insurance against any loss in connection with the
6assets of the fund or require a surety bond.
   7c.  Contract with a private financial management firm to
8manage the fund, in collaboration with the treasurer of state,
9including providing for the disbursement of education savings
10grants in the form of an electronic debit card or checks that
11are payable directly from the pupil’s account within the fund.
   12d.  Conduct audits or other review necessary to properly
13administer the program.
   14e.  Adopt rules pursuant to chapter 17A for the
15administration of the fund and accounts within the fund.
   165.  a.  For each pupil approved for an education savings
17grant, the department of management shall establish an account
18for that pupil in the education savings grant fund. The
19amount of the pupil’s education savings grant determined under
20subsection 3 shall be deposited into the pupil’s account on
21July 1 and such amount shall be immediately available for the
22payment of qualified educational expenses incurred by the
23parent or guardian for the pupil during that fiscal year using
24the payment method authorized under subsection 4, paragraph
25“c”.
   26b.  A nonpublic school or a provider of competent private
27instruction that accepts payment from a parent or guardian
28using funds from a pupil’s account in the education savings
29grant fund shall not refund, rebate, or share any portion of
30such payment with the parent, guardian, or pupil.
   31c.  Moneys remaining in a pupil’s account upon conclusion
32of the fiscal year shall remain in the pupil’s account in the
33education savings grant fund for the payment of qualified
34educational expenses in future fiscal years or for the payment
35of higher education costs under subsection 8.
-41-
   16.  For purposes of this section, “qualified educational
2expenses”
includes tuition and fees at a nonpublic school
3or nonpublic preschool, textbooks, fees or payments for
4tutoring or cognitive skills training, curriculum materials,
5tuition or fees for nonpublic online education programs,
6education materials and services for pupils with disabilities,
7standardized test fees, fees required by the department not to
8exceed for each grant recipient five percent of the total grant
9amount in any fiscal year, and other expenses incurred by the
10parent or guardian that are directly related to the education
11of the pupil at a nonpublic preschool or a nonpublic school,
12including a nonpublic school accredited by an independent
13accrediting agency approved by the department of management, or
14directly related to providing competent private instruction for
15the pupil under chapter 299A or private preschool instruction.
16The cost of one computer or other portable computing device
17shall be allowed as a qualified educational expense for
18a pupil if such a purchase has not been made using funds
19from that pupil’s account in either of the two immediately
20preceding fiscal years. “Qualified educational expenses” do not
21include transportation costs for the pupil, the cost of food
22or refreshments consumed by the pupil, the cost of clothing
23for the pupil, or the cost of disposable materials including
24but not limited to paper, notebooks, pencils, pens, and art
25supplies.
   267.  A person who makes a false claim for the purpose
27of obtaining an education savings grant provided for in
28this section or who knowingly receives the grant or makes a
29payment from an account within the education savings grant
30fund without being legally entitled to do so is guilty of a
31fraudulent practice under chapter 714. The false claim for an
32education savings grant or a payment from an account shall be
33disallowed. If amounts from the grant have been disbursed from
34the applicable account in the education savings grant fund, the
35department of management shall initiate legal proceedings to
-42-1recover such amounts. A parent or guardian, or a pupil for
2purposes of subsection 8, who commits a fraudulent practice
3under this subsection is prohibited from participating in the
4education savings grant program in the future.
   58.  For each pupil with a positive balance in the pupil’s
6account in the education savings grant fund upon graduation
7from high school or completion of an equivalent level of
8competent private instruction under chapter 299A, the
9department of management shall maintain such account in the
10fund until the pupil is twenty-five years of age. Following
11graduation from high school until the pupil is twenty-five
12years of age, moneys in the pupil’s account may be used
13for higher education costs, as defined in section 12D.1,
14incurred by the pupil while attending an institution of higher
15education under the control of the state board of regents, a
16community college located in this state, or a private college
17or university located in this state. Payments from a pupil’s
18account for higher education costs shall be made in the same
19manner as payments for qualified educational expenses under
20subsection 5. Moneys in a pupil’s account when the pupil turns
21twenty-five years of age shall be transferred by the department
22of management for deposit in the general fund of the state.
   239.  This section shall not be construed to authorize the
24state or any political subdivision of the state to exercise
25authority over any nonpublic school or provider of competent
26private instruction under chapter 299A or construed to require
27a nonpublic school to modify its standards for admission or
28educational program in order to receive payment from a parent
29or guardian using funds from a pupil’s account in the education
30savings grant fund. A nonpublic school or provider of
31competent private instruction under chapter 299A that accepts
32payment from a parent or guardian using funds from a pupil’s
33account in the education savings grant fund is not an agent
34of this state or of a political subdivision of this state.
35Rules adopted by the department of management to implement this
-43-1section that impose an undue burden on a nonpublic school or
2provider of competent private instruction under chapter 299A
3are invalid.
4   Sec. 86.  Section 422.7, Code 2017, is amended by adding the
5following new subsection:
6   NEW SUBSECTION.  51.  Subtract, to the extent included, the
7amount of an education savings grant under section 257.11B
8received by the taxpayer for payment of qualified educational
9expenses.
10   Sec. 87.  APPLICABILITY.  Except as otherwise provided, this
11division of this Act applies to school budget years and fiscal
12years beginning on or after July 1, 2018.
13   Sec. 88.  APPLICABILITY.  The section of this division of
14this Act enacting section 422.7, subsection 51, applies to tax
15years beginning on or after January 1, 2018.
16   Sec. 89.  EFFECTIVE DATE.  The section of this division of
17this Act enacting section 257.1A takes effect July 1, 2018.
18DIVISION IV
19CORRESPONDING AMENDMENTS LEGISLATION
20   Sec. 90.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional
21legislation is required to fully implement the section of
22division III of this Act enacting section 257.1A. The director
23of the department of education shall, in compliance with
24section 2.16, prepare draft legislation for submission to the
25legislative services agency, as necessary, to implement the
26transition and elimination of authority and duties of the
27department of education, the state board of education, and
28director of the department of education under the section
29of division III of this Act enacting section 257.1A and to
30implement the transition and elimination of authority and
31duties under other provisions of law.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
   35This bill relates to education and school district funding
-44-1by modifying the duties and authority of certain state and
2local governmental entities, establishing an education savings
3grant program, and modifying the school district funding
4formula.
   5Division I of the bill repeals Code chapter 256, which
6establishes the department of education, establishes the office
7of the director of the department of education, establishes
8the state board of education, specifies certain educational
9standards, establishes various education programs, establishes
10certain councils and entities within the department of
11education, includes provisions relating to the participation in
12extracurricular activities, establishes the division of library
13services, includes the library compact, and establishes the
14public broadcasting division.
   15Division I of the bill also amends and repeals other chapters
16of the Code relating to education to transition the duties and
17authority of the department of education, the director of the
18department of education, and the state board of education to
19other specified local and state governmental entities beginning
20July 1, 2018.
   21Division I of the bill takes effect July 1, 2018.
   22Division II of the bill provides that additional legislation
23is required to fully implement division I of the bill and
24requires the director of the department of education to
25prepare draft legislation for submission to the legislative
26services agency, as necessary, to implement the transition
27and elimination of authority and duties under division I of
28the bill and to implement the transition and elimination of
29authority and duties under other provisions of law including
30but not limited to the duties and authority of the department
31of education, the state board of education, the director of
32the department of education, and any division, commission,
33or subunit of such entities or offices under specified Code
34chapters.
   35Division III of the bill provides that beginning July
-45-11, 2018, the authority and duties of the department of
2education, the state board of education, and the director
3of the department of education under Code chapter 257 are
4transferred to the department of management and the director
5of the department of management. The bill also provides that
6moneys remaining in any account or fund under the control of
7the department of education at the conclusion of the fiscal
8year beginning July 1, 2017, relative to the provisions of Code
9chapter 257 are transferred to the control of the department
10of management for such purposes. The bill provides that
11any contract entered into by the department of education
12relating to the provisions of Code chapter 257 in effect at
13the conclusion of the fiscal year beginning July 1, 2017,
14shall continue in full force and effect pending transfer of
15such contracts to the department of management. The bill also
16provides for the continuation of any rule, regulation, form,
17order, or directive promulgated by the department of education
18until amended, repealed, or supplemented by affirmative action
19of the department of management.
   20Division III of the bill provides education savings grants
21for pupils attending a nonpublic school, receiving competent
22private instruction, or receiving private preschool instruction
23and establishes an education savings grant fund.
   24Under division III of the bill, pupils eligible to enroll
25in grades kindergarten through 12 or eligible to participate
26in a preschool program under Code chapter 256C and attending a
27nonpublic school, receiving competent private instruction under
28Code chapter 299A, or receiving private preschool instruction
29are eligible to receive an education savings grant for school
30years beginning on or after July 1, 2018. By January 31
31preceding the school year for which the education savings grant
32is requested, the parent or guardian of the pupil requesting to
33receive an education savings grant must submit an application
34to the department of management.
   35Division III of the bill requires that by March 1 preceding
-46-1the school year for which the education savings grant is
2requested, the department of management must notify the parent
3or guardian of each pupil designated to receive an education
4savings grant and the amount of the education savings grant.
5Education savings grants may only be approved for one school
6year and annual applications must be submitted for education
7savings grants in subsequent school years.
   8The amount of each education savings grant is equal to the
9statewide average regular program state foundation aid per
10pupil in the same school year or in the case of a preschool
11eligible pupil an amount equal to 50 percent of the regular
12program state cost per pupil.
   13Division III of the bill creates an education savings
14grant fund in the state treasury under the control of the
15department of management consisting of moneys appropriated to
16the department for the purpose of providing education savings
17grants. For the fiscal year commencing July 1, 2018, and each
18succeeding fiscal year, there is appropriated from the general
19fund of the state to the department of management for deposit
20in the fund the amount necessary to pay all education savings
21grants approved for that fiscal year. For each pupil approved
22for an education savings grant, the department of management
23must establish an account for that pupil in the education
24savings grant fund. The amount of the pupil’s education
25savings grant is deposited into the pupil’s account on July 1
26and such amount is available for use by parents and guardians
27for the payment of qualified educational expenses, as defined
28in the bill, incurred by the parent or guardian for the pupil
29during that fiscal year.
   30Division III of the bill authorizes the department of
31management to contract with a private financial management firm
32to manage the education savings grant fund, in collaboration
33with the treasurer of state, including providing for the
34disbursement of education savings grants in the form of an
35electronic debit card or checks that are payable directly from
-47-1the pupil’s account within the fund.
   2Division III of the bill provides that moneys remaining in a
3pupil’s account upon the conclusion of the fiscal year shall
4remain in the pupil’s account within the education savings
5grant fund for the payment of qualified educational expenses in
6future fiscal years or for higher education costs as authorized
7in the bill.
   8Under the division, for each pupil with a positive balance in
9the pupil’s account in the education savings grant fund upon
10graduation from high school or completion of an equivalent
11level of competent private instruction under Code chapter
12299A, the department of management is required to maintain the
13account in the fund until the pupil is 25 years old. Until
14the pupil is 25 years old, moneys in the pupil’s account may
15be used by the pupil for higher education costs, as defined
16in Code section 12D.1. Moneys in a pupil’s account when the
17pupil turns 25 years old are transferred by the department of
18management for deposit in the general fund of the state.
   19Division III of the bill provides that a person who makes a
20false claim for the purpose of obtaining an education savings
21grant or who knowingly receives the grant or makes a payment
22from an account within the education savings grant fund without
23being legally entitled to do so is guilty of a fraudulent
24practice and is subject to a criminal penalty. The bill allows
25the department of management to initiate legal proceedings to
26recover grants and amounts improperly awarded or paid from
27accounts under the bill.
   28Division III of the bill provides that an education savings
29grant received by a taxpayer is not taxable income for purposes
30of state individual income taxation. This provision of the
31bill applies to tax years beginning on or after January 1,
322018.
   33The section of division III of the bill enacting Code section
34257.1A takes effect July 1, 2018. Division III of the bill
35applies to school budget years and fiscal years beginning on
-48-1or after July 1, 2018.
   2Division IV of the bill provides that additional legislation
3is required to fully implement division III of the bill
4and requires the director of the department of education to
5prepare draft legislation for submission to the legislative
6services agency, as necessary, to implement the transition
7and elimination of authority and duties of the department of
8education pursuant to new Code section 257.1A and to implement
9the transition and elimination of authority and duties under
10other provisions of law.
-49-
md/sc