Bill Text: IA SF29 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act relating to education by modifying the duties and authority of certain state and local governmental entities, establishing an education savings grant program and fund, making appropriations, providing penalties, and including effective date and applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2017-01-12 - Subcommittee: Behn, Quirmbach, and Rozenboom. S.J. 84. [SF29 Detail]

Download: Iowa-2017-SF29-Introduced.html
Senate File 29 - Introduced




                                 SENATE FILE       
                                 BY  ZAUN

                                      A BILL FOR

  1 An Act relating to education by modifying the duties and
  2    authority of certain state and local governmental entities,
  3    establishing an education savings grant program and fund,
  4    making appropriations, providing penalties, and including
  5    effective date and applicability provisions.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1270XS (3) 87
    md/sc

PAG LIN



  1  1                           DIVISION I
  1  2              REPEAL OF DEPARTMENT OF EDUCATION AND
  1  3                    STATE BOARD OF EDUCATION
  1  4    Section 1.  NEW SECTION.  256B.16  Transfer of authority and
  1  5 duties.
  1  6    1.  Beginning July 1, 2018, the authority and duties of the
  1  7 department of education, the division of special education
  1  8 created under section 256B.1, the state board of education, and
  1  9 the director of the department of education under this chapter
  1 10 shall to the extent feasible be transferred to the appropriate
  1 11 area education agency where such special education services
  1 12 are being provided.  Accordingly, beginning July 1, 2018, all
  1 13 references to the department of education or the division of
  1 14 special education under this chapter and references to the
  1 15 department of education or the division of special education
  1 16 under other provisions of law relating to this chapter shall
  1 17 mean the applicable area education agency and all references to
  1 18 the state board of education or the director of the department
  1 19 of education under this chapter or other provisions of law
  1 20 relating to this chapter shall mean the board of directors of
  1 21 the area education agency and the administrator of the area
  1 22 education agency respectively.
  1 23    2.  Any moneys remaining in any account or fund under the
  1 24 control of the department of education at the conclusion
  1 25 of the fiscal year beginning July 1, 2017, relative to
  1 26 the provisions of this chapter shall be transferred to the
  1 27 control of the department of human services for such purposes.
  1 28 Notwithstanding section 8.33, the moneys transferred in
  1 29 accordance with this subsection shall not revert to the account
  1 30 or fund from which appropriated or transferred.
  1 31    3.  Any contract entered into by the department of education
  1 32 relating to the provisions of this chapter in effect at the
  1 33 conclusion of the fiscal year beginning July 1, 2017,  shall
  1 34 continue in full force and effect pending transfer of such
  1 35 contracts to the area education agencies.
  2  1    4.  Any rule, regulation, form, order, or directive
  2  2 promulgated by the department of education relative to the
  2  3 provisions of this chapter in existence at the conclusion of
  2  4 the fiscal year beginning July 1, 2017, shall continue in full
  2  5 force and effect.
  2  6    5.  In regard to updating references and format in the Iowa
  2  7 administrative code in order to correspond to the transferring
  2  8 of duties of this chapter, the administrative rules coordinator
  2  9 and the administrative rules review committee, in consultation
  2 10 with the administrative code editor, shall jointly develop a
  2 11 schedule for the necessary updating of the Iowa administrative
  2 12 code.
  2 13    Sec. 2.  Section 256C.1, Code 2017, is amended to read as
  2 14 follows:
  2 15    256C.1  Definitions.
  2 16    As used in this chapter:
  2 17    1.  "Approved local program" means a school district's
  2 18 program for four=year=old children approved by the department
  2 19 of education to provide high quality preschool instruction.
  2 20    2.  "Department" means the department of education.
  2 21    3.  "Director" means the director of the department of
  2 22 education.
  2 23    4.  2.  "Preschool program" means the statewide preschool
  2 24 program for four=year=old children created in accordance with
  2 25 this chapter.
  2 26    5.  3.  "School district approved to participate in the
  2 27 preschool program" means a school district that meets the
  2 28 school district requirements under section 256C.3 and has been
  2 29 approved by the department to participate in the preschool
  2 30 program.
  2 31    6.  "State board" means the state board of education.
  2 32    Sec. 3.  Section 256C.2, subsection 2, Code 2017, is amended
  2 33 by striking the subsection.
  2 34    Sec. 4.  Section 256C.3, subsection 2, paragraph a,
  2 35 subparagraph (3), Code 2017, is amended to read as follows:
  3  1    (3)  The individual possesses a bachelor's or graduate
  3  2 degree from an accredited college or university with a major
  3  3 in early childhood education or other appropriate major
  3  4 identified in rule by the department as determined by the
  3  5 school district's board of directors.
  3  6    Sec. 5.  Section 256C.3, subsection 3, unnumbered paragraph
  3  7 1, Code 2017, is amended to read as follows:
  3  8    The state board shall adopt rules to further define the
  3  9 following preschool program requirements which shall be used to
  3 10 determine whether or not a Each local program implemented by
  3 11 a school district approved to implement the preschool program
  3 12 qualifies as an approved local program shall address or conform
  3 13 with all of the following:
  3 14    Sec. 6.  Section 256C.3, subsection 3, paragraph e, Code
  3 15 2017, is amended to read as follows:
  3 16    e.  Collaboration with participating families, early care
  3 17 providers, and community partners including but not limited to
  3 18 early childhood Iowa area boards, head start programs, shared
  3 19 visions and other programs provided under the auspices of the
  3 20 child development coordinating council, licensed child care
  3 21 centers, registered child development homes, area education
  3 22 agencies, child care resource and referral services provided
  3 23 under section 237A.26, early childhood special education
  3 24 programs, services funded by Tit. I of the federal Elementary
  3 25 and Secondary Education Act of 1965, and family support
  3 26 programs.
  3 27    Sec. 7.  Section 256C.3, subsection 4, Code 2017, is amended
  3 28 by striking the subsection and inserting in lieu thereof the
  3 29 following:
  3 30    4.  School district requirements.
  3 31    a.  Subject to implementation of chapter 28E agreements
  3 32 between a school district and community=based providers of
  3 33 services to four=year=old children, a four=year=old child who
  3 34 is enrolled in a child care center or child development home
  3 35 licensed or registered under chapter 237A, or in an existing
  4  1 public or private preschool program, shall be eligible for
  4  2 services provided by the school district's local preschool
  4  3 program.
  4  4    b.  Professional development for school district preschool
  4  5 teachers shall be addressed in the school district's
  4  6 professional development plan implemented in accordance with
  4  7 section 284.6.
  4  8    Sec. 8.  Section 256C.3, subsection 5, Code 2017, is amended
  4  9 by striking the subsection.
  4 10    Sec. 9.  Section 256C.4, subsection 1, paragraph d, Code
  4 11 2017, is amended to read as follows:
  4 12    d.  Preschool foundation aid funding shall not be commingled
  4 13 with the other state aid payments made under section 257.16
  4 14 to a school district and shall be accounted for by the local
  4 15 school district separately from the other state aid payments.
  4 16 Preschool foundation aid payments made to school districts
  4 17 are miscellaneous income for purposes of chapter 257. A
  4 18 school district shall maintain a separate listing within its
  4 19 budget for preschool foundation aid payments received and
  4 20 expenditures made. A school district shall certify to the
  4 21 department of education that preschool Preschool foundation aid
  4 22 funding received by the school district was shall be used to
  4 23 supplement, not supplant, moneys otherwise received and used by
  4 24 the school district for preschool programming.
  4 25    Sec. 10.  Section 256C.4, subsection 2, paragraph b, Code
  4 26 2017, is amended to read as follows:
  4 27    b.  The enrollment count of eligible students shall not
  4 28 include a child who is included in the enrollment count
  4 29 determined under section 257.6 or a child who is served by
  4 30 a program already receiving state or federal funds for the
  4 31 purpose of the provision of four=year=old preschool programming
  4 32 while the child is being served by the program. Such preschool
  4 33 programming includes but is not limited to child development
  4 34 assistance programs provided under chapter 256A, special
  4 35 education programs provided under section 256B.9, school ready
  5  1 children grant programs and other programs provided under
  5  2 chapter 256I, and federal head start programs and the services
  5  3 funded by Tit. I of the federal Elementary and Secondary
  5  4 Education Act of 1965.
  5  5    Sec. 11.  Section 256C.5, subsection 2, Code 2017, is amended
  5  6 to read as follows:
  5  7    2.  Preschool foundation aid district amount.
  5  8    a.  For the initial school year for which a school district
  5  9 approved to participate in the preschool program receives that
  5 10 approval and implements the preschool program, the funding for
  5 11 the preschool foundation aid payable to that school district
  5 12 shall be paid from the appropriation made for that school year
  5 13 in section 256C.6, Code 2011, or in another appropriation
  5 14 made for purposes of this chapter. For that school year, the
  5 15 preschool foundation aid payable to the school district is
  5 16 the product of the regular program state cost per pupil for
  5 17 the school year multiplied by sixty percent of the school
  5 18 district's eligible student enrollment on the date in the
  5 19 school year determined by rule.
  5 20    b.  For budget years subsequent to the initial school year
  5 21 for which a school district approved to participate in the
  5 22 preschool program receives that initial approval and implements
  5 23 the preschool program, the funding for the preschool foundation
  5 24 aid payable to that school district shall be paid from the
  5 25 appropriation made in section 257.16. Continuation of a
  5 26 school district's participation in the preschool program for
  5 27 a second or subsequent budget year is subject to the approval
  5 28 of the department based upon the school district's compliance
  5 29 with accountability provisions and the department's on=site
  5 30 review of the school district's implementation of the preschool
  5 31 program.
  5 32    Sec. 12.  Section 256C.5, subsection 4, Code 2017, is amended
  5 33 by striking the subsection.
  5 34    Sec. 13.  NEW SECTION.  256F.12  Transfer of authority and
  5 35 duties.
  6  1    1.  Beginning July 1, 2018, the authority and duties of the
  6  2 department of education, the state board, and the director of
  6  3 the department of education under this chapter, to the extent
  6  4 feasible, shall be transferred to the board of directors of
  6  5 the community college serving the merged area in which the
  6  6 charter school or innovation zone school, or such proposed
  6  7 school, is located.  Accordingly, beginning July 1, 2018, all
  6  8 references to the department of education, the state board of
  6  9 education, and the director of the department of education
  6 10 under this chapter or other provisions of law relating to this
  6 11 chapter shall mean the board of directors of the community
  6 12 college serving the merged area in which the charter school or
  6 13 innovation zone school, or such proposed school, is located.
  6 14    2.  Any contract entered into by the department of education
  6 15 relating to the provisions of this chapter in effect at the
  6 16 conclusion of the fiscal year beginning July 1, 2017,  shall
  6 17 continue in full force and effect pending transfer of such
  6 18 contracts to the appropriate community college board of
  6 19 directors.
  6 20    3.  Any rule, regulation, form, order, or directive
  6 21 promulgated by the department of education relative to the
  6 22 provisions of this chapter in existence at the conclusion of
  6 23 the fiscal year beginning July 1, 2017, shall continue in full
  6 24 force and effect.
  6 25    Sec. 14.  NEW SECTION.  256H.4  Transfer of authority and
  6 26 duties.
  6 27    1.  Beginning July 1, 2018, the authority and duties of the
  6 28 department of education and the director of the department
  6 29 of education under this chapter shall be transferred to the
  6 30 adjutant general of the state.  Accordingly, beginning July 1,
  6 31 2018, all references to the department of education and the
  6 32 director of the department of education under this chapter or
  6 33 other provisions of law relating to this chapter shall mean
  6 34 adjutant general of the state.
  6 35    2.  Any contract entered into by the department of education
  7  1 relating to the provisions of this chapter in effect at the
  7  2 conclusion of the fiscal year beginning July 1, 2017, shall
  7  3 continue in full force and effect pending transfer of such
  7  4 contracts to the adjutant general of the state.
  7  5    3.  Any rule, regulation, form, order, or directive
  7  6 promulgated by the department of education relative to the
  7  7 provisions of this chapter in existence upon conclusion of the
  7  8 fiscal year beginning July 1, 2017, shall continue in full
  7  9 force and effect.
  7 10    Sec. 15.  NEW SECTION.  256I.14  Transfer of authority and
  7 11 duties.
  7 12    1.  Beginning July 1, 2018, the authority and duties of the
  7 13 department of education and the director of the department
  7 14 of education under this chapter shall be transferred to the
  7 15 department of management and the director of the department
  7 16 of management.  Accordingly, beginning July 1, 2018, all
  7 17 references to the department of education or the director of
  7 18 the department of education under this chapter or under other
  7 19 provisions of law relating to this chapter shall mean the
  7 20 department of management and the director of the department of
  7 21 management.
  7 22    2.  Any moneys remaining in any account or fund under the
  7 23 control of the department of education at the conclusion of the
  7 24 fiscal year beginning July 1, 2017, relative to the provisions
  7 25 of this chapter shall be transferred to the control of the
  7 26 department of management for such purposes.  Notwithstanding
  7 27 section 8.33, the moneys transferred in accordance with this
  7 28 subsection shall not revert to the account or fund from which
  7 29 appropriated or transferred.
  7 30    3.  Any contract entered into by the department of education
  7 31 relating to the provisions of this chapter in effect at the
  7 32 conclusion of the fiscal year beginning July 1, 2017, shall
  7 33 continue in full force and effect pending transfer of such
  7 34 contracts to the department of management.
  7 35    4.  Any rule, regulation, form, order, or directive
  8  1 promulgated by the department of education relative to the
  8  2 provisions of this chapter in existence at the conclusion of
  8  3 the fiscal year beginning July 1, 2017, shall continue in full
  8  4 force and effect until amended, repealed, or supplemented by
  8  5 affirmative action of the department of management under the
  8  6 duties and powers established in this chapter and under the
  8  7 procedure established in subsection 5.
  8  8    5.  In regard to updating references and format in the Iowa
  8  9 administrative code in order to correspond to the transferring
  8 10 of duties of this chapter, the administrative rules coordinator
  8 11 and the administrative rules review committee, in consultation
  8 12 with the administrative code editor, shall jointly develop a
  8 13 schedule for the necessary updating of the Iowa administrative
  8 14 code.
  8 15    Sec. 16.  Section 257C.5, subsection 1, Code 2017, is amended
  8 16 to read as follows:
  8 17    1.  The powers of the authority are vested in and exercised
  8 18 by a board consisting of five members, including the treasurer
  8 19 of state, the director of the department of education, and the
  8 20 director of the department of management, and two three members
  8 21 appointed by the governor, subject to confirmation by the
  8 22 senate. The state officials may designate representatives to
  8 23 serve on the board for them. As far as possible, the governor
  8 24 shall appoint members who are knowledgeable or experienced in
  8 25 the school systems of this state or in finance.
  8 26    Sec. 17.  NEW SECTION.  258.18  Transfer of authority and
  8 27 duties.
  8 28    1.  Beginning July 1, 2018, the authority and duties of the
  8 29 department of education, the state board of education, and the
  8 30 director of the department of education under this chapter
  8 31 shall be transferred to the department of workforce development
  8 32 and the director of the department of workforce development.
  8 33 Accordingly, beginning July 1, 2018, all references to the
  8 34 department of education under this chapter and references
  8 35 to the department of education under other provisions of
  9  1 law relating to this chapter shall mean the department of
  9  2 workforce development and all references to the state board
  9  3 of education or the director of the department of education
  9  4 under this chapter or other provisions of law relating to this
  9  5 chapter shall mean the director of the department of workforce
  9  6 development.
  9  7    2.  Any moneys remaining in any account or fund under the
  9  8 control of the department of education at the conclusion
  9  9 of the fiscal year beginning July 1, 2017, relative to the
  9 10 provisions of this chapter shall be transferred to the control
  9 11 of the department of workforce development for such purposes.
  9 12 Notwithstanding section 8.33, the moneys transferred in
  9 13 accordance with this subsection shall not revert to the account
  9 14 or fund from which appropriated or transferred.
  9 15    3.  Any contract entered into by the department of education
  9 16 relating to the provisions of this chapter in effect at the
  9 17 conclusion of the fiscal year beginning July 1, 2017, shall
  9 18 continue in full force and effect pending transfer of such
  9 19 contracts to the department of workforce development.
  9 20    4.  Any rule, regulation, form, order, or directive
  9 21 promulgated by the department of education relative to the
  9 22 provisions of this chapter in existence at the conclusion of
  9 23 the fiscal year beginning July 1, 2017, shall continue in full
  9 24 force and effect until amended, repealed, or supplemented by
  9 25 affirmative action of the department of workforce development
  9 26 under the duties and powers established in this chapter and
  9 27 under the procedure established in subsection 5.
  9 28    5.  In regard to updating references and format in the Iowa
  9 29 administrative code in order to correspond to the transferring
  9 30 of duties of this chapter, the administrative rules coordinator
  9 31 and the administrative rules review committee, in consultation
  9 32 with the administrative code editor, shall jointly develop a
  9 33 schedule for the necessary updating of the Iowa administrative
  9 34 code.
  9 35    Sec. 18.  NEW SECTION.  259.1A  Transfer of authority and
 10  1 duties.
 10  2    1.  Beginning July 1, 2018, the authority and duties of the
 10  3 department of education, the state board of education, and the
 10  4 director of the department of education under this chapter
 10  5 shall be transferred to the department of workforce development
 10  6 and the director of the department of workforce development.
 10  7 Accordingly, beginning July 1, 2018, all references to the
 10  8 department of education under this chapter and references
 10  9 to the department of education under other provisions of
 10 10 law relating to this chapter shall mean the department of
 10 11 workforce development and all references to the state board
 10 12 of education or the director of the department of education
 10 13 under this chapter or other provisions of law relating to this
 10 14 chapter shall mean the director of the department of workforce
 10 15 development.
 10 16    2.  Beginning July 1, 2018, the division of vocational
 10 17 rehabilitation services created within the department of
 10 18 education under section 259.3 shall be transferred to the
 10 19 department of workforce development.
 10 20    3.  Any moneys remaining in any account or fund under the
 10 21 control of the department of education at the conclusion
 10 22 of the fiscal year beginning July 1, 2017, relative to the
 10 23 provisions of this chapter shall be transferred to the control
 10 24 of the department of workforce development for such purposes.
 10 25 Notwithstanding section 8.33, the moneys transferred in
 10 26 accordance with this subsection shall not revert to the account
 10 27 or fund from which appropriated or transferred.
 10 28    4.  Any contract entered into by the department of education
 10 29 relating to the provisions of this chapter in effect at the
 10 30 conclusion of the fiscal year beginning July 1, 2017, shall
 10 31 continue in full force and effect pending transfer of such
 10 32 contracts to the department of workforce development.
 10 33    5.  Any rule, regulation, form, order, or directive
 10 34 promulgated by the department of education relative to the
 10 35 provisions of this chapter in existence at the conclusion of
 11  1 the fiscal year beginning July 1, 2017, shall continue in full
 11  2 force and effect until amended, repealed, or supplemented by
 11  3 affirmative action of the department of workforce development
 11  4 under the duties and powers established in this chapter and
 11  5 under the procedure established in subsection 6.
 11  6    6.  In regard to updating references and format in the Iowa
 11  7 administrative code in order to correspond to the transferring
 11  8 of duties of this chapter, the administrative rules coordinator
 11  9 and the administrative rules review committee, in consultation
 11 10 with the administrative code editor, shall jointly develop a
 11 11 schedule for the necessary updating of the Iowa administrative
 11 12 code.
 11 13    Sec. 19.  Section 259A.1, Code 2017, is amended to read as
 11 14 follows:
 11 15    259A.1  Tests.
 11 16    The department of education Each board of directors of
 11 17 the community college serving the merged area shall cause to
 11 18 be made available for qualified individuals a high school
 11 19 equivalency diploma. The diploma shall be issued on the basis
 11 20 of satisfactory competence as shown by tests covering all of
 11 21 the following: reading, language arts, literacy, mathematics,
 11 22 science, and social studies.
 11 23    Sec. 20.  Section 259A.2, unnumbered paragraph 2, Code 2017,
 11 24 is amended to read as follows:
 11 25    Application shall be made to a testing center approved
 11 26 by the department of education board of directors of the
 11 27 community college serving the merged area, accompanied by an
 11 28 application fee in an amount prescribed by the department board
 11 29 of directors of the community college. The test scores shall
 11 30 be forwarded by the scorer of the test to the department board
 11 31 of directors of the community college.
 11 32    Sec. 21.  Section 259A.3, Code 2017, is amended to read as
 11 33 follows:
 11 34    259A.3  Notice and fee.
 11 35    Any applicant who has achieved the minimum passing standards
 12  1 as established by the department, and approved by the state
 12  2 board, board of directors of the community college shall be
 12  3 issued a high school equivalency diploma by the department upon
 12  4 payment of an additional amount determined in rules adopted by
 12  5 the state board of education by the board to cover the actual
 12  6 costs of the production and distribution of the diploma. The
 12  7 state board of education may also by rule establish a fee for
 12  8 the issuance or verification of a transcript which shall be
 12  9 based on the actual costs of the production or verification of
 12 10 a transcript.
 12 11    Sec. 22.  Section 259A.4, Code 2017, is amended to read as
 12 12 follows:
 12 13    259A.4  Use of fees.
 12 14    The fees collected under the provisions of this chapter
 12 15 shall be used for the expenses incurred in administering,
 12 16 providing test materials, scoring of examinations and issuance
 12 17 of high school equivalency diplomas, and shall be disbursed
 12 18 on the authorization of the director of the department of
 12 19 education board of directors of the community college. The
 12 20 treasurer of state shall be custodian of the funds paid to the
 12 21 department community college and shall disburse the same on
 12 22 vouchers audited as provided by law. The unobligated balance
 12 23 in such funds at the close of each biennium shall be placed in
 12 24 the general fund of the state.
 12 25    Sec. 23.  Section 259A.5, Code 2017, is amended to read as
 12 26 follows:
 12 27    259A.5  Rules.
 12 28    The director of the department of education Each board
 12 29 of directors of the community college shall adopt tests,
 12 30 definitions of terms, and forms as necessary for the
 12 31 administration of this chapter. The state board shall adopt
 12 32 rules under chapter 17A to carry out this chapter.
 12 33    Sec. 24.  NEW SECTION.  260C.1A  Transfer of authority and
 12 34 duties.
 12 35    1.  Beginning July 1, 2018, the authority and duties of the
 13  1 department of education, the state board of education, and the
 13  2 director of the department of education under this chapter
 13  3 shall, to the extent feasible, be transferred to the boards of
 13  4 directors of the community colleges serving the merged areas of
 13  5 the state.  Accordingly, beginning July 1, 2018, all references
 13  6 to the department of education, the state board of education,
 13  7 and the director of the department of education under this
 13  8 chapter and references to the department of education, the
 13  9 state board of education, and the director of the department
 13 10 of education under other provisions of law relating to this
 13 11 chapter shall mean the applicable board of directors of a
 13 12 community college.
 13 13    2.  Beginning July 1, 2018, transfer of the duties and
 13 14 authority of the department shall also include all duties and
 13 15 authority of the community colleges division created within the
 13 16 department of education under section 260C.6.
 13 17    3.  Any moneys remaining in any account or fund under the
 13 18 control of the department of education at the conclusion of the
 13 19 fiscal year beginning July 1, 2017, relative to the provisions
 13 20 of this chapter shall be transferred to the control of the
 13 21 applicable board of directors of a community college for such
 13 22 purposes.  Notwithstanding section 8.33, the moneys transferred
 13 23 in accordance with this subsection shall not revert to the
 13 24 account or fund from which appropriated or transferred.
 13 25    4.  Any contract entered into by the department of education
 13 26 relating to the provisions of this chapter in effect at the
 13 27 conclusion of the fiscal year beginning July 1, 2017, shall
 13 28 continue in full force and effect pending transfer of such
 13 29 contracts to the boards of directors of the community colleges.
 13 30    5.  Any rule, regulation, form, order, or directive
 13 31 promulgated by the department of education relative to the
 13 32 provisions of this chapter in existence at the conclusion of
 13 33 the fiscal year beginning July 1, 2017, shall continue in full
 13 34 force and effect.
 13 35    Sec. 25.  Section 260E.7, subsection 1, Code 2017, is amended
 14  1 to read as follows:
 14  2    1.  The economic development authority, in consultation with
 14  3 the department of education, the department of revenue, and
 14  4 the department of workforce development, shall coordinate and
 14  5 review the new jobs training program. The economic development
 14  6 authority shall adopt, amend, and repeal rules under chapter
 14  7 17A that the community college will use in developing projects
 14  8 with new and expanding industrial new jobs training proposals
 14  9 and that the economic development authority shall use to review
 14 10 and report on the new jobs training program as required in this
 14 11 section.
 14 12    Sec. 26.  Section 260F.3, subsection 5, Code 2017, is amended
 14 13 to read as follows:
 14 14    5.  Other criteria established by the department authority.
 14 15    Sec. 27.  Section 260F.6B, Code 2017, is amended to read as
 14 16 follows:
 14 17    260F.6B  High technology apprenticeship program.
 14 18    The community colleges and the authority are authorized
 14 19 to fund high technology apprenticeship programs which comply
 14 20 with the requirements specified in section 260C.44 and which
 14 21 may include both new and statewide apprenticeship programs.
 14 22 Notwithstanding the provisions of section 260F.6, subsection
 14 23 2, relating to maximum award amounts, moneys allocated to
 14 24 the community colleges with high technology apprenticeship
 14 25 programs shall be distributed to the community colleges based
 14 26 upon contact hours under the programs administered during the
 14 27 prior fiscal year as determined by the department of education
 14 28  authority. The authority shall adopt rules governing this
 14 29 section's operation and participant eligibility.
 14 30    Sec. 28.  Section 260F.7, Code 2017, is amended to read as
 14 31 follows:
 14 32    260F.7   Authority to coordinate.
 14 33    The authority, in consultation with the department of
 14 34 education and the department of workforce development, shall
 14 35 coordinate the jobs training program. A project shall not be
 15  1 funded under this chapter unless the authority approves the
 15  2 project. The authority shall adopt rules pursuant to chapter
 15  3 17A governing the program's operation and eligibility for
 15  4 participation in the program. The authority shall establish
 15  5 by rule criteria for determining what constitutes an eligible
 15  6 business.
 15  7    Sec. 29.  Section 260H.2, subsection 1, Code 2017, is amended
 15  8 to read as follows:
 15  9    1.  A pathways for academic career and employment program
 15 10 is established to provide funding to community colleges
 15 11 for the development of projects in coordination with the
 15 12 economic development authority, the department of education,
 15 13  the department of workforce development, local workforce
 15 14 development boards established pursuant to section 84A.4, and
 15 15 community partners to implement a simplified, streamlined, and
 15 16 comprehensive process, along with customized support services,
 15 17 to enable eligible participants to acquire effective academic
 15 18 and employment training to secure gainful, quality, in=state
 15 19 employment.
 15 20    Sec. 30.  Section 260H.2, subsection 2, paragraph a, Code
 15 21 2017, is amended to read as follows:
 15 22    a.  A pathways for academic career and employment fund
 15 23 is created for the community colleges in the state treasury
 15 24 to be administered by the department of education economic
 15 25 development authority. The moneys in the pathways for academic
 15 26 career and employment fund are appropriated to the department
 15 27 of education economic development authority for the pathways
 15 28 for academic career and employment program.
 15 29    Sec. 31.  Section 260H.8, Code 2017, is amended to read as
 15 30 follows:
 15 31    260H.8  Rules.
 15 32    The department of education authority, in consultation with
 15 33 the community colleges, the economic development authority,
 15 34  and the department of workforce development, shall adopt rules
 15 35 pursuant to chapter 17A and this chapter to implement the
 16  1 provisions of this chapter. Local workforce development boards
 16  2 established pursuant to section 84A.4 shall be consulted in the
 16  3 development and implementation of rules to be adopted pursuant
 16  4 to this chapter.
 16  5    Sec. 32.  Section 260I.2, subsection 2, paragraph a, Code
 16  6 2017, is amended to read as follows:
 16  7    a.  There is established for the community colleges
 16  8 a gap tuition assistance fund in the state treasury to
 16  9 be administered by the department of education economic
 16 10 development authority. The funds in the gap tuition assistance
 16 11 fund are appropriated to the department of education economic
 16 12 development authority for the gap tuition assistance program.
 16 13    Sec. 33.  Section 260I.3, subsection 1, Code 2017, is amended
 16 14 to read as follows:
 16 15    1.  The department of education, in consultation with the
 16 16  economic development authority, shall adopt rules pursuant to
 16 17 this chapter defining eligibility criteria for persons applying
 16 18 to receive tuition assistance under this chapter.
 16 19    Sec. 34.  Section 260I.10, Code 2017, is amended to read as
 16 20 follows:
 16 21    260I.10  Oversight.
 16 22    1.  The department of education economic development
 16 23 authority, in coordination with the community colleges, shall
 16 24 establish a steering committee. The steering committee shall
 16 25 determine if the performance measures of the gap tuition
 16 26 assistance program are being met and shall take necessary steps
 16 27 to correct any deficiencies. The steering committee shall meet
 16 28 at least quarterly to evaluate and monitor the performance of
 16 29 the gap tuition assistance program.
 16 30    2.  The department of education economic development
 16 31 authority, in coordination with the community colleges,
 16 32 shall develop a common intake tracking system that shall be
 16 33 implemented consistently by each participating community
 16 34 college.
 16 35    3.  The department of education economic development
 17  1 authority shall coordinate statewide oversight, evaluation, and
 17  2 reporting efforts for the gap tuition assistance program.
 17  3    Sec. 35.  Section 260I.11, Code 2017, is amended to read as
 17  4 follows:
 17  5    260I.11  Rules.
 17  6    The department of education economic development authority,
 17  7 in consultation with the economic development authority and the
 17  8  community colleges, shall adopt rules pursuant to chapter 17A
 17  9 and this chapter to implement the provisions of this chapter.
 17 10    Sec. 36.  Section 261.1, subsection 2, paragraph b, Code
 17 11 2017, is amended by striking the paragraph.
 17 12    Sec. 37.  NEW SECTION.  261.8  Transfer of authority and
 17 13 duties.
 17 14    1.  Beginning July 1, 2018, the authority and duties of the
 17 15 department of education, the state board of education, and the
 17 16 director of the department of education under this chapter
 17 17 shall be transferred to the college student aid commission.
 17 18 Accordingly, beginning July 1, 2018, all references to the
 17 19 department of education or the director of the department of
 17 20 education under this chapter and references to the department
 17 21 of education or the director of the department of education
 17 22 under other provisions of law relating to this chapter shall
 17 23 mean the college student aid commission.
 17 24    2.  Any moneys remaining in any account or fund under the
 17 25 control of the department of education at the conclusion
 17 26 of the fiscal year beginning July 1, 2017, relative to the
 17 27 provisions of this chapter shall be transferred to the control
 17 28 of the college student aid commission for such purposes.
 17 29 Notwithstanding section 8.33, the moneys transferred in
 17 30 accordance with this subsection shall not revert to the account
 17 31 or fund from which appropriated or transferred.
 17 32    3.  Any contract entered into by the department of education
 17 33 relating to the provisions of this chapter in effect at the
 17 34 conclusion of the fiscal year beginning July 1, 2017, shall
 17 35 continue in full force and effect pending transfer of such
 18  1 contracts to the college student aid commission.
 18  2    4.  Any rule, regulation, form, order, or directive
 18  3 promulgated by the department of education relative to the
 18  4 provisions of this chapter in existence at the conclusion of
 18  5 the fiscal year beginning July 1, 2017, shall continue in full
 18  6 force and effect until amended, repealed, or supplemented by
 18  7 affirmative action of the college student aid commission under
 18  8 the duties and powers established in this chapter and under the
 18  9 procedure established in subsection 5.
 18 10    5.  In regard to updating references and format in the Iowa
 18 11 administrative code in order to correspond to the transferring
 18 12 of duties of this chapter, the administrative rules coordinator
 18 13 and the administrative rules review committee, in consultation
 18 14 with the administrative code editor, shall jointly develop a
 18 15 schedule for the necessary updating of the Iowa administrative
 18 16 code.
 18 17    Sec. 38.  NEW SECTION.  261E.1A  Transfer of authority and
 18 18 duties.
 18 19    1.  Beginning July 1, 2018, the authority and duties of
 18 20 the department of education, the state board of education,
 18 21 and the director of the department of education under this
 18 22 chapter shall be transferred to the state board of regents.
 18 23 Accordingly, beginning July 1, 2018, all references to the
 18 24 department of education, the state board of education, or the
 18 25 director of the department of education under this chapter
 18 26 and references to the department of education, state board of
 18 27 education, or director of the department of education under
 18 28 other provisions of law relating to this chapter shall mean the
 18 29 state board of regents.
 18 30    2.  Any moneys remaining in any account or fund under the
 18 31 control of the department of education at the conclusion of the
 18 32 fiscal year beginning July 1, 2017, relative to the provisions
 18 33 of this chapter shall be transferred to the control of the
 18 34 state board of regents for such purposes.  Notwithstanding
 18 35 section 8.33, the moneys transferred in accordance with this
 19  1 subsection shall not revert to the account or fund from which
 19  2 appropriated or transferred.
 19  3    3.  Any contract entered into by the department of education
 19  4 relating to the provisions of this chapter in effect at the
 19  5 conclusion of the fiscal year beginning July 1, 2017, shall
 19  6 continue in full force and effect pending transfer of such
 19  7 contracts to the state board of regents.
 19  8    4.  Any rule, regulation, form, order, or directive
 19  9 promulgated by the department of education relative to the
 19 10 provisions of this chapter in existence at the conclusion of
 19 11 the fiscal year beginning July 1, 2017, shall continue in full
 19 12 force and effect until amended, repealed, or supplemented by
 19 13 affirmative action of the state board of regents under the
 19 14 duties and powers established in this chapter and under the
 19 15 procedure established in subsection 5.
 19 16    5.  In regard to updating references and format in the Iowa
 19 17 administrative code in order to correspond to the transferring
 19 18 of duties of this chapter, the administrative rules coordinator
 19 19 and the administrative rules review committee, in consultation
 19 20 with the administrative code editor, shall jointly develop a
 19 21 schedule for the necessary updating of the Iowa administrative
 19 22 code.
 19 23    Sec. 39.  Section 262.9, subsection 27, Code 2017, is amended
 19 24 to read as follows:
 19 25    27.  Explore, in conjunction with the department
 19 26 of education, the need for coordination between school
 19 27 districts, area education agencies, state board of regents
 19 28 institutions, and community colleges for purposes of delivery
 19 29 of courses, use of telecommunications, transportation, and
 19 30 other similar issues. Coordination may include but is not
 19 31 limited to coordination of calendars, programs, schedules, or
 19 32 telecommunications emissions. The state board shall develop
 19 33 recommendations as necessary, which shall be submitted in a
 19 34 report to the general assembly on a timely basis.
 19 35    Sec. 40.  Section 262.9, subsection 33, unnumbered paragraph
 20  1 1, Code 2017, is amended to read as follows:
 20  2    In consultation with the state board of education, establish
 20  3  Establish and enter into a collective statewide articulation
 20  4 agreement with the community colleges established pursuant to
 20  5 chapter 260C, which shall provide for the seamless transfer
 20  6 of academic credits from a completed associate of arts or
 20  7 associate of science degree program offered by a community
 20  8 college to a baccalaureate degree program offered by an
 20  9 institution of higher education governed by the board. The
 20 10 board shall also do the following:
 20 11    Sec. 41.  Section 262.9, subsection 33, paragraph i, Code
 20 12 2017, is amended to read as follows:
 20 13    i.  Prepare, jointly with the department of education and
 20 14  the liaison advisory committee on transfer students, and submit
 20 15 by January 15 annually to the general assembly, an update on
 20 16 the articulation efforts and activities implemented by the
 20 17 community colleges and the institutions of higher education
 20 18 governed by the board.
 20 19    Sec. 42.  Section 262.71, subsection 9, Code 2017, is amended
 20 20 by striking the subsection.
 20 21    Sec. 43.  Section 266.39C, subsection 2, paragraph a,
 20 22 subparagraph (5), Code 2017, is amended to read as follows:
 20 23    (5)  One representative of community colleges, appointed by
 20 24 the state board of education governor.
 20 25    Sec. 44.  Section 266.39C, subsection 6, Code 2017, is
 20 26 amended to read as follows:
 20 27    6.  The Iowa energy center shall cooperate with the state
 20 28 board of education in developing develop a curriculum which
 20 29 promotes energy efficiency and conservation.
 20 30    Sec. 45.  Section 272.1, subsection 4, Code 2017, is amended
 20 31 by striking the subsection.
 20 32    Sec. 46.  NEW SECTION.  272.1A  Transfer of authority and
 20 33 duties.
 20 34    1.  Beginning July 1, 2018, the authority and duties of the
 20 35 department of education, the state board of education, and the
 21  1 director of the department of education under this chapter
 21  2 shall be transferred to the board of educational examiners.
 21  3 Accordingly, beginning July 1, 2018, all references to the
 21  4 department of education, the state board of education, or the
 21  5 director of the department of education under this chapter
 21  6 and references to the department of education, state board of
 21  7 education, or director of the department of education under
 21  8 other provisions of law relating to this chapter shall mean the
 21  9 board of educational examiners.
 21 10    2.  Any moneys remaining in any account or fund under the
 21 11 control of the department of education at the conclusion
 21 12 of the fiscal year beginning July 1, 2017, relative to the
 21 13 provisions of this chapter shall be transferred to the control
 21 14 of the board of educational examiners for such purposes.
 21 15 Notwithstanding section 8.33, the moneys transferred in
 21 16 accordance with this subsection shall not revert to the account
 21 17 or fund from which appropriated or transferred.
 21 18    3.  Any contract entered into by the department of education
 21 19 relating to the provisions of this chapter in effect at the
 21 20 conclusion of the fiscal year beginning July 1, 2017,  shall
 21 21 continue in full force and effect pending transfer of such
 21 22 contracts to the board of educational examiners.
 21 23    Sec. 47.  Section 272.3, subsection 1, unnumbered paragraph
 21 24 1, Code 2017, is amended to read as follows:
 21 25    The board of educational examiners consists of twelve
 21 26 members. Two must be members of the general public, one
 21 27 must be the director of the department of education or the
 21 28 director's designee, and the remaining nine ten members must be
 21 29 licensed practitioners. One of the public members shall have
 21 30 served on a school board. The public members shall never have
 21 31 held a practitioner's license, but shall have a demonstrated
 21 32 interest in education. The nine ten practitioners shall be
 21 33 selected from the following areas and specialties of the
 21 34 teaching profession:
 21 35    Sec. 48.  Section 272.3, subsection 2, Code 2017, is amended
 22  1 to read as follows:
 22  2    2.  A majority of the licensed practitioner members shall
 22  3 be nonadministrative practitioners. Four of the members shall
 22  4 be administrators. Membership of the board shall comply with
 22  5 the requirements of sections 69.16 and 69.16A. A quorum of the
 22  6 board shall consist of six members. Members shall elect a
 22  7 chairperson of the board. Members, except for the director of
 22  8 the department of education or the director's designee, shall
 22  9 be appointed by the governor subject to confirmation by the
 22 10 senate.
 22 11    Sec. 49.  Section 272.4, subsection 1, unnumbered paragraph
 22 12 1, Code 2017, is amended to read as follows:
 22 13    Members, except for the director of the department of
 22 14 education or the director's designee, shall be appointed to
 22 15 serve staggered terms of four years. A member shall not serve
 22 16 more than two consecutive terms, except for the director of the
 22 17 department of education or the director's designee, who shall
 22 18 serve until the director's term of office expires. A member of
 22 19 the board, except for the two public members and the director
 22 20 of the department of education or the director's designee,
 22 21 shall hold a valid practitioner's license during the member's
 22 22 term of office. A vacancy exists when any of the following
 22 23 occur:
 22 24    Sec. 50.  Section 272.25, subsections 3, 4, and 8, Code 2017,
 22 25 are amended to read as follows:
 22 26    3.  A requirement that the program include instruction
 22 27 in skills and strategies to be used in classroom management
 22 28 of individuals, and of small and large groups, under
 22 29 varying conditions;, skills for communicating and working
 22 30 constructively with pupils, teachers, administrators, and
 22 31 parents;, preparation in reading theory, knowledge, strategies,
 22 32 and approaches, and for integrating literacy instruction
 22 33 into content areas in accordance with section 256.16; and
 22 34 skills for understanding the role of the board of education
 22 35 and the functions of other education agencies in the state.
 23  1 The requirement shall be based upon recommendations of the
 23  2 department of education after consultation with teacher
 23  3 education faculty members in colleges and universities.
 23  4    4.  A requirement that prescribes minimum experiences and
 23  5 responsibilities to be accomplished during the student teaching
 23  6 experience by the student teacher and by the cooperating
 23  7 teacher based upon recommendations of the department of
 23  8 education after consultation with teacher education faculty
 23  9 members in colleges and universities. The student teaching
 23 10 experience shall include opportunities for the student
 23 11 teacher to become knowledgeable about the Iowa teaching
 23 12 standards, including a mock evaluation performed by the
 23 13 cooperating teacher. The mock evaluation shall not be used as
 23 14 an assessment tool by the practitioner preparation program.
 23 15 The student teaching experience shall consist of interactive
 23 16 experiences involving the college or university personnel, the
 23 17 student teacher, the cooperating teacher, and administrative
 23 18 personnel from the cooperating teacher's school district.
 23 19    8.  A requirement that an approved practitioner preparation
 23 20 institution submit evidence that the college or department of
 23 21 education is communicating with other colleges or departments
 23 22 in the institution so that practitioner preparation students
 23 23 may integrate teaching methodology with subject matter areas
 23 24 of specialization.
 23 25    Sec. 51.  NEW SECTION.  273.1A  Transfer of authority and
 23 26 duties.
 23 27    1.  Beginning July 1, 2018, the authority and duties of
 23 28 the department of education, the state board of education,
 23 29 and the director of the department of education under this
 23 30 chapter shall, to the extent feasible, be transferred to the
 23 31 area education agency boards of directors in this state.
 23 32 Accordingly, beginning July 1, 2018, all references to the
 23 33 department of education, the state board of education, and the
 23 34 director of the department of education under this chapter and
 23 35 references to the department of education, the state board of
 24  1 education, and the director of the department of education
 24  2 under other provisions of law relating to this chapter shall
 24  3 mean the applicable area education agency board of directors.
 24  4    2.  Any rule, regulation, form, order, or directive
 24  5 promulgated by the department of education relative to the
 24  6 provisions of this chapter in existence at the conclusion of
 24  7 the fiscal year beginning July 1, 2017, shall continue in full
 24  8 force and effect.
 24  9    Sec. 52.  Section 273.2, subsection 5, unnumbered paragraph
 24 10 1, Code 2017, is amended to read as follows:
 24 11    The area education agency board may provide for the
 24 12 following programs and services to local school districts, and
 24 13 at the request of local school districts to providers of child
 24 14 development services who have received grants under chapter
 24 15 256A from the child development coordinating council, within
 24 16 the limits of funds available:
 24 17    Sec. 53.  NEW SECTION.  274.1A  Transfer of authority and
 24 18 duties.
 24 19    1.  Beginning July 1, 2018, the authority and duties of the
 24 20 department of education and the director of the department of
 24 21 education under this chapter shall, to the extent feasible, be
 24 22 transferred to the area education agency boards of directors
 24 23 in this state.  Accordingly, beginning July 1, 2018, all
 24 24 references to the department of education and the director of
 24 25 the department of education under this chapter and references
 24 26 to the department of education and the director of the
 24 27 department of education under other provisions of law relating
 24 28 to this chapter shall mean the applicable area education agency
 24 29 board of directors.
 24 30    2.  Any rule, regulation, form, order, or directive
 24 31 promulgated by the department of education or the director
 24 32 of the department of education relative to the provisions of
 24 33 this chapter in existence at the conclusion of the fiscal
 24 34 year beginning July 1, 2017, shall continue in full force and
 24 35 effect.
 25  1    Sec. 54.  NEW SECTION.  275.1A  Transfer of authority and
 25  2 duties.
 25  3    1.  Beginning July 1, 2018, the authority and duties of
 25  4 the department of education, the state board of education,
 25  5 and the director of the department of education under this
 25  6 chapter shall, to the extent feasible, be transferred to the
 25  7 area education agency boards of directors in this state.
 25  8 Accordingly, beginning July 1, 2018, all references to the
 25  9 department of education, the state board of education, and the
 25 10 director of the department of education under this chapter and
 25 11 references to the department of education, the state board of
 25 12 education, and the director of the department of education
 25 13 under other provisions of law relating to this chapter shall
 25 14 mean the applicable area education agency board of directors.
 25 15    2.  Any rule, regulation, form, order, or directive
 25 16 promulgated by the department of education, the state board
 25 17 of education, or the director of the department of education
 25 18 relative to the provisions of this chapter in existence at the
 25 19 conclusion of the fiscal year beginning July 1, 2017, shall
 25 20 continue in full force and effect.
 25 21    Sec. 55.  Section 276.3, subsections 5 and 9, Code 2017, are
 25 22 amended by striking the subsections.
 25 23    Sec. 56.  Section 279.51, subsection 1, unnumbered paragraph
 25 24 1, Code 2017, is amended to read as follows:
 25 25    There is appropriated from the general fund of the state
 25 26 to the department of education management for the fiscal year
 25 27 beginning July 1, 2007, and each succeeding fiscal year, the
 25 28 sum of twelve million six hundred six thousand one hundred
 25 29 ninety=six dollars. The moneys shall be allocated as follows:
 25 30    Sec. 57.  Section 279.51, subsection 1, paragraphs b and d,
 25 31 Code 2017, are amended by striking the paragraphs.
 25 32    Sec. 58.  Section 279.51, subsection 2, Code 2017, is amended
 25 33 by striking the subsection.
 25 34    Sec. 59.  NEW SECTION.  279.70  Transfer of authority and
 25 35 duties.
 26  1    1.  Beginning July 1, 2018, the authority and duties of
 26  2 the department of education, the state board of education,
 26  3 and the director of the department of education under this
 26  4 chapter, to the extent feasible, shall be transferred to the
 26  5 boards of directors for the respective school districts in the
 26  6 state.  Accordingly, beginning July 1, 2018, all references to
 26  7 the department of education, the state board of education, and
 26  8 the director of the department of education under this chapter
 26  9 and references to the department of education, the state board
 26 10 of education, and the director of the department of education
 26 11 under other provisions of law relating to this chapter shall
 26 12 mean the applicable board of directors of the school district.
 26 13    2.  Any rule, regulation, form, order, or directive
 26 14 promulgated by the department of education, the state board
 26 15 of education, or the director of the department of education
 26 16 relative to the provisions of this chapter in existence at the
 26 17 conclusion of the fiscal year beginning July 1, 2017, shall
 26 18 continue in full force and effect.
 26 19    Sec. 60.  NEW SECTION.  280.1A  Transfer of authority and
 26 20 duties.
 26 21    1.  Beginning July 1, 2018, the authority and duties of
 26 22 the department of education, the state board of education,
 26 23 and the director of the department of education under this
 26 24 chapter, to the extent feasible, shall be transferred to the
 26 25 boards of directors for the respective school districts in the
 26 26 state.  Accordingly, beginning July 1, 2018, all references to
 26 27 the department of education, the state board of education, and
 26 28 the director of the department of education under this chapter
 26 29 and references to the department of education, the state board
 26 30 of education, and the director of the department of education
 26 31 under other provisions of law relating to this chapter shall
 26 32 mean the applicable board of directors of the school district.
 26 33    2.  Any rule, regulation, form, order, or directive
 26 34 promulgated by the department of education, the state board
 26 35 of education, or the director of the department of education
 27  1 relative to the provisions of this chapter in existence at the
 27  2 conclusion of the fiscal year beginning July 1, 2017, shall
 27  3 continue in full force and effect.
 27  4    Sec. 61.  NEW SECTION.  282.1A  Transfer of authority and
 27  5 duties.
 27  6    1.  Beginning July 1, 2018, the authority and duties of
 27  7 the department of education, the state board of education,
 27  8 and the director of the department of education under this
 27  9 chapter, to the extent feasible, shall be transferred to the
 27 10 boards of directors for the respective school districts in the
 27 11 state.  Accordingly, beginning July 1, 2018, all references to
 27 12 the department of education, the state board of education, and
 27 13 the director of the department of education under this chapter
 27 14 and references to the department of education, the state board
 27 15 of education, and the director of the department of education
 27 16 under other provisions of law relating to this chapter shall
 27 17 mean the applicable board of directors of the school district.
 27 18    2.  Any rule, regulation, form, order, or directive
 27 19 promulgated by the department of education, the state board
 27 20 of education, or the director of the department of education
 27 21 relative to the provisions of this chapter in existence at the
 27 22 conclusion of the fiscal year beginning July 1, 2017, shall
 27 23 continue in full force and effect.
 27 24    Sec. 62.  Section 282.18, subsections 5 and 13, Code 2017,
 27 25 are amended to read as follows:
 27 26    5.  Open enrollment applications filed after March 1
 27 27 of the preceding school year that do not qualify for good
 27 28 cause as provided in subsection 4 shall be subject to the
 27 29 approval of the board of the resident district and the board
 27 30 of the receiving district. The parent or guardian shall send
 27 31 notification to the district of residence and the receiving
 27 32 district that the parent or guardian seeks to enroll the
 27 33 parent's or guardian's child in the receiving district. A
 27 34 decision of either board to deny an application filed under
 27 35 this subsection involving repeated acts of harassment of the
 28  1 student or serious health condition of the student that the
 28  2 resident district cannot adequately address is subject to
 28  3 appeal under section 290.1. The state board shall exercise
 28  4 broad discretion to achieve just and equitable results that are
 28  5 in the best interest of the affected child or children.
 28  6    13.  If a request under this section is for transfer to a
 28  7 laboratory school, as described in chapter 265, the student,
 28  8 who is the subject of the request, shall not be included in
 28  9 the basic enrollment of the student's district of residence,
 28 10 and the laboratory school shall report the enrollment of the
 28 11 student directly to the department of education management,
 28 12 unless the number of students from the district attending the
 28 13 laboratory school during the current school year, as a result
 28 14 of open enrollment under this section, exceeds the number of
 28 15 students enrolled in the laboratory school from that district
 28 16 during the 1989=1990 school year. If the number of students
 28 17 enrolled in the laboratory school from a district during the
 28 18 current year exceeds the number of students enrolled from that
 28 19 district during the 1989=1990 school year, those students who
 28 20 represent the difference between the current and the 1988=1989
 28 21 school year enrollment figures shall be included in the basic
 28 22 enrollment of the students' districts of residence and the
 28 23 districts shall retain any moneys received as a result of the
 28 24 inclusion of the student in the district enrollment. The total
 28 25 number of students enrolled at a laboratory school during a
 28 26 school year shall not exceed six hundred seventy students. The
 28 27 regents institution operating the laboratory school and the
 28 28 board of directors of the school district in the community
 28 29 in which the regents institution is located shall develop
 28 30 a student transfer policy designed to protect and promote
 28 31 the quality and integrity of the teacher education program
 28 32 at the laboratory school, the viability of the education
 28 33 program of the local school district in which the regents
 28 34 institution is located, and to indicate the order in which and
 28 35 reasons why requests to transfer to a laboratory school shall
 29  1 be considered. A laboratory school may deny a request for
 29  2 transfer under the policy. A denial of a request to transfer
 29  3 under this subsection is not subject to appeal under section
 29  4 290.1.
 29  5    Sec. 63.  Section 282.18, subsection 15, Code 2017, is
 29  6 amended by striking the subsection.
 29  7    Sec. 64.  Section 283.1, Code 2017, is amended to read as
 29  8 follows:
 29  9    283.1  Federal funds accepted.
 29 10    The director of the department of education management
 29 11  is the "state educational authority" for the purpose of
 29 12 accepting and administering funds appropriated by Congress for
 29 13 educational purposes and the funds shall be deposited with the
 29 14 treasurer of state and disbursed through the department of
 29 15 administrative services on vouchers audited as provided by law.
 29 16 When state matching funds are required as a condition to the
 29 17 acceptance of federal funds, the director of the department
 29 18 of education management may make expenditures for matching
 29 19 only from funds provided by the legislature for that purpose.
 29 20 However, when federal funds may be matched with expenditures
 29 21 from funds appropriated for the general operation of the
 29 22 department of education management, this may be done with the
 29 23 approval of the legislative council.
 29 24    Sec. 65.  NEW SECTION.  283A.1A  Transfer of authority and
 29 25 duties.
 29 26    1.  Beginning July 1, 2018, the authority and duties of
 29 27 the department of education, the state board of education,
 29 28 and the director of the department of education under this
 29 29 chapter, to the extent feasible, shall be transferred to the
 29 30 boards of directors for the respective school districts in the
 29 31 state.  Accordingly, beginning July 1, 2018, all references to
 29 32 the department of education, the state board of education, and
 29 33 the director of the department of education under this chapter
 29 34 and references to the department of education, the state board
 29 35 of education, and the director of the department of education
 30  1 under other provisions of law relating to this chapter shall
 30  2 mean the applicable board of directors of the school district.
 30  3    2.  Any rule, regulation, form, order, or directive
 30  4 promulgated by the department of education, the state board
 30  5 of education, or the director of the department of education
 30  6 relative to the provisions of this chapter in existence at the
 30  7 conclusion of the fiscal year beginning July 1, 2017, shall
 30  8 continue in full force and effect.
 30  9    Sec. 66.  Section 283A.3, Code 2017, is amended to read as
 30 10 follows:
 30 11    283A.3  Expenditure of federal funds.
 30 12    The director of the department of education management shall
 30 13 accept and direct the disbursement of funds appropriated by any
 30 14 Act of Congress and appropriated to the state of Iowa for use
 30 15 in connection with school breakfast or lunch programs. The
 30 16 director shall deposit the funds with the treasurer of the
 30 17 state of Iowa, who shall make disbursements upon the direction
 30 18 of the director.
 30 19    Sec. 67.  NEW SECTION.  284.1A  Transfer of authority and
 30 20 duties.
 30 21    1.  Beginning July 1, 2018, the authority and duties of
 30 22 the department of education, the state board of education,
 30 23 and the director of the department of education under this
 30 24 chapter, to the extent feasible, shall be transferred to the
 30 25 boards of directors for the respective school districts in the
 30 26 state.  Accordingly, beginning July 1, 2018, all references to
 30 27 the department of education, the state board of education, and
 30 28 the director of the department of education under this chapter
 30 29 and references to the department of education, the state board
 30 30 of education, and the director of the department of education
 30 31 under other provisions of law relating to this chapter shall
 30 32 mean the applicable board of directors of the school district.
 30 33    2.  Any rule, regulation, form, order, or directive
 30 34 promulgated by the department of education, the state board
 30 35 of education, or the director of the department of education
 31  1 relative to the provisions of this chapter in existence at the
 31  2 conclusion of the fiscal year beginning July 1, 2017, shall
 31  3 continue in full force and effect.
 31  4    Sec. 68.  NEW SECTION.  284A.1A  Transfer of authority and
 31  5 duties.
 31  6    1.  Beginning July 1, 2018, the authority and duties of
 31  7 the department of education, the state board of education,
 31  8 and the director of the department of education under this
 31  9 chapter, to the extent feasible, shall be transferred to the
 31 10 boards of directors for the respective school districts in the
 31 11 state.  Accordingly, beginning July 1, 2018, all references to
 31 12 the department of education, the state board of education, and
 31 13 the director of the department of education under this chapter
 31 14 and references to the department of education, the state board
 31 15 of education, and the director of the department of education
 31 16 under other provisions of law relating to this chapter shall
 31 17 mean the applicable board of directors of the school district.
 31 18    2.  Any rule, regulation, form, order, or directive
 31 19 promulgated by the department of education, the state board
 31 20 of education, or the director of the department of education
 31 21 relative to the provisions of this chapter in existence at the
 31 22 conclusion of the fiscal year beginning July 1, 2017, shall
 31 23 continue in full force and effect.
 31 24    Sec. 69.  NEW SECTION.  285.7  Transfer of authority and
 31 25 duties.
 31 26    1.  Beginning July 1, 2018, the authority and duties of
 31 27 the department of education, the state board of education,
 31 28 and the director of the department of education under this
 31 29 chapter, to the extent feasible, shall be transferred to the
 31 30 boards of directors for the respective school districts in the
 31 31 state.  Accordingly, beginning July 1, 2018, all references to
 31 32 the department of education, the state board of education, and
 31 33 the director of the department of education under this chapter
 31 34 and references to the department of education, the state board
 31 35 of education, and the director of the department of education
 32  1 under other provisions of law relating to this chapter shall
 32  2 mean the applicable board of directors of the school district.
 32  3    2.  Any rule, regulation, form, order, or directive
 32  4 promulgated by the department of education, the state board
 32  5 of education, or the director of the department of education
 32  6 relative to the provisions of this chapter in existence at the
 32  7 conclusion of the fiscal year beginning July 1, 2017, shall
 32  8 continue in full force and effect.
 32  9    Sec. 70.  Section 291.11, Code 2017, is amended to read as
 32 10 follows:
 32 11    291.11  Officers reported.
 32 12    The secretary shall report to the director of the department
 32 13 of education management, the county auditor, and county
 32 14 treasurer the name and post office address of the president,
 32 15 treasurer and secretary of the board as soon as practicable
 32 16 after the qualification of each.
 32 17    Sec. 71.  NEW SECTION.  292.1A  Transfer of authority and
 32 18 duties.
 32 19    1.  Beginning July 1, 2018, the authority and duties of the
 32 20 department of education under this chapter shall be transferred
 32 21 to the department of revenue.  Accordingly, beginning July 1,
 32 22 2018, all references to the department of education under this
 32 23 chapter and references to the department of education under
 32 24 other provisions of law relating to this chapter shall mean the
 32 25 department of revenue.
 32 26    2.  Any moneys remaining in any account or fund under the
 32 27 control of the department of education at the conclusion of the
 32 28 fiscal year beginning July 1, 2017, relative to the provisions
 32 29 of this chapter shall be transferred to the control of the
 32 30 department of revenue for such purposes.  Notwithstanding
 32 31 section 8.33, the moneys transferred in accordance with this
 32 32 subsection shall not revert to the account or fund from which
 32 33 appropriated or transferred.
 32 34    3.  Any contract entered into by the department of education
 32 35 relating to the provisions of this chapter in effect at the
 33  1 conclusion of the fiscal year beginning July 1, 2017, shall
 33  2 continue in full force and effect pending transfer of such
 33  3 contracts to the department of revenue.
 33  4    4.  Any rule, regulation, form, order, or directive
 33  5 promulgated by the department of education relative to the
 33  6 provisions of this chapter in existence at the conclusion of
 33  7 the fiscal year beginning July 1, 2017, shall continue in full
 33  8 force and effect until amended, repealed, or supplemented by
 33  9 affirmative action of the department of revenue under the
 33 10 duties and powers established in this chapter and under the
 33 11 procedure established in subsection 5.
 33 12    5.  In regard to updating references and format in the Iowa
 33 13 administrative code in order to correspond to the transferring
 33 14 of duties of this chapter, the administrative rules coordinator
 33 15 and the administrative rules review committee, in consultation
 33 16 with the administrative code editor, shall jointly develop a
 33 17 schedule for the necessary updating of the Iowa administrative
 33 18 code.
 33 19    Sec. 72.  Section 294.5, Code 2017, is amended to read as
 33 20 follows:
 33 21    294.5  Reports.
 33 22    The teacher shall file with the school superintendent and
 33 23 the director of the department of education such reports and in
 33 24 such manner as may be required.
 33 25    Sec. 73.  Section 296.3, Code 2017, is amended to read as
 33 26 follows:
 33 27    296.3  Election called.
 33 28    Within ten days of receipt of a petition filed under section
 33 29 296.2, the president of the board of directors shall call a
 33 30 meeting of the board. The meeting shall be held within thirty
 33 31 days after the petition was received. At the meeting, the
 33 32 board shall call the election, fixing the time of the election,
 33 33 which may be at the time and place of holding the regular
 33 34 school election. However, if the board determines by unanimous
 33 35 vote that the proposition or propositions requested by a
 34  1 petition to be submitted at an election are grossly unrealistic
 34  2 or contrary to the needs of the school district, no election
 34  3 shall be called. If more than one petition has been received
 34  4 by the time the board meets to consider the petition triggering
 34  5 the meeting, the board shall act upon the petitions in the
 34  6 order they were received at the meeting called to consider the
 34  7 initial petition. The decision of the board may be appealed to
 34  8 the state board of education as provided in chapter 290. The
 34  9 president shall notify the county commissioner of elections of
 34 10 the time of the election.
 34 11    Sec. 74.  NEW SECTION.  297.37  Transfer of authority and
 34 12 duties.
 34 13    1.  Beginning July 1, 2018, the authority and duties of the
 34 14 department of education and the director of the department
 34 15 of education under this chapter shall be transferred to the
 34 16 department of administrative services and the director of the
 34 17 department of administrative services.  Accordingly, beginning
 34 18 July 1, 2018, all references to the department of education
 34 19 and the director of the department of education under this
 34 20 chapter and references to the department of education and the
 34 21 director of the department of education under other provisions
 34 22 of law relating to this chapter shall mean the department of
 34 23 administrative services or the director of the department of
 34 24 administrative services.
 34 25    2.  Any rule, regulation, form, order, or directive
 34 26 promulgated by the department of education or the director
 34 27 of the department of education relative to the provisions of
 34 28 this chapter in existence at the conclusion of the fiscal
 34 29 year beginning July 1, 2017, shall continue in full force and
 34 30 effect.
 34 31    Sec. 75.  Section 298A.8, Code 2017, is amended to read as
 34 32 follows:
 34 33    298A.8  Student activity fund.
 34 34    The student activity fund is a special revenue fund. A
 34 35 student activity fund must be established in any school
 35  1 corporation receiving money from student=related activities
 35  2 such as admissions, activity fees, student dues, student
 35  3 fund=raising events, or other student=related cocurricular or
 35  4 extracurricular activities. Moneys in this fund shall be used
 35  5 to support only the cocurricular program defined in department
 35  6 of education administrative rules.
 35  7    Sec. 76.  NEW SECTION.  299.25  Transfer of authority and
 35  8 duties.
 35  9    1.  Beginning July 1, 2018, the authority and duties of
 35 10 the department of education, the state board of education,
 35 11 and the director of the department of education under this
 35 12 chapter, to the extent feasible, shall be transferred to the
 35 13 boards of directors for the respective school districts in the
 35 14 state.  Accordingly, beginning July 1, 2018, all references to
 35 15 the department of education, the state board of education, and
 35 16 the director of the department of education under this chapter
 35 17 and references to the department of education, the state board
 35 18 of education, and the director of the department of education
 35 19 under other provisions of law relating to this chapter shall
 35 20 mean the applicable board of directors of the school district.
 35 21    2.  Any rule, regulation, form, order, or directive
 35 22 promulgated by the department of education, the state board
 35 23 of education, or the director of the department of education
 35 24 relative to the provisions of this chapter in existence at the
 35 25 conclusion of the fiscal year beginning July 1, 2017, shall
 35 26 continue in full force and effect.
 35 27    Sec. 77.  NEW SECTION.  299A.1A  Transfer of authority and
 35 28 duties.
 35 29    1.  Beginning July 1, 2018, the authority and duties of
 35 30 the department of education, the state board of education,
 35 31 and the director of the department of education under this
 35 32 chapter, to the extent feasible, shall be transferred to the
 35 33 boards of directors for the respective school districts in the
 35 34 state.  Accordingly, beginning July 1, 2018, all references to
 35 35 the department of education, the state board of education, and
 36  1 the director of the department of education under this chapter
 36  2 and references to the department of education, the state board
 36  3 of education, and the director of the department of education
 36  4 under other provisions of law relating to this chapter shall
 36  5 mean the applicable board of directors of the school district.
 36  6    2.  Any rule, regulation, form, order, or directive
 36  7 promulgated by the department of education, the state board
 36  8 of education, or the director of the department of education
 36  9 relative to the provisions of this chapter in existence at the
 36 10 conclusion of the fiscal year beginning July 1, 2017, shall
 36 11 continue in full force and effect.
 36 12    Sec. 78.  NEW SECTION.  301.1A  Transfer of authority and
 36 13 duties.
 36 14    1.  Beginning July 1, 2018, the authority and duties of
 36 15 the department of education, the state board of education,
 36 16 and the director of the department of education under this
 36 17 chapter, to the extent feasible, shall be transferred to the
 36 18 boards of directors for the respective school districts in the
 36 19 state.  Accordingly, beginning July 1, 2018, all references to
 36 20 the department of education, the state board of education, and
 36 21 the director of the department of education under this chapter
 36 22 and references to the department of education, the state board
 36 23 of education, and the director of the department of education
 36 24 under other provisions of law relating to this chapter shall
 36 25 mean the applicable board of directors of the school district.
 36 26    2.  Any rule, regulation, form, order, or directive
 36 27 promulgated by the department of education, the state board
 36 28 of education, or the director of the department of education
 36 29 relative to the provisions of this chapter in existence at the
 36 30 conclusion of the fiscal year beginning July 1, 2017, shall
 36 31 continue in full force and effect.
 36 32    Sec. 79.  REPEAL.  Sections 260C.6, 276.4, and 291.10, Code
 36 33 2017, are repealed.
 36 34    Sec. 80.  REPEAL.  Chapters 256, 256A, 256G, and 290, Code
 36 35 2017, are repealed.
 37  1    Sec. 81.  EFFECTIVE DATE.  This division of this Act takes
 37  2 effect July 1, 2018.
 37  3                           DIVISION II
 37  4              CORRESPONDING AMENDMENTS LEGISLATION
 37  5    Sec. 82.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional
 37  6 legislation is required to fully implement division I of this
 37  7 Act.  The director of the department of education shall, in
 37  8 compliance with section 2.16, prepare draft legislation for
 37  9 submission to the legislative services agency, as necessary,
 37 10 to implement the transition and elimination of authority and
 37 11 duties under division I of this Act and to implement the
 37 12 transition and elimination of authority and duties under other
 37 13 provisions of law including but not limited to the duties and
 37 14 authority of the department of education, the state board of
 37 15 education, the director of the department of education, and any
 37 16 division, commission, or subunit of such entities or offices
 37 17 under chapters 7A, 7E, 8A, 8B, 8D, 8F, 11, 12, 15, 15H, 16, 19B,
 37 18 22, 48A, 68B, 73, 80E, 84A, 85, 96, 99B, 125, 135, 139A, 141A,
 37 19 142A, 154B, 154F, 161A, 190A, 216A, 218, 225C, 232, 234, 237,
 37 20 237A, 237C, 239B, 241, 249A, 257, 261B, 321, 321J, 322, 350,
 37 21 423E, 423F, 455A, 455E, 473, 514I, 714, and 904.
 37 22                          DIVISION III
 37 23                      EDUCATION FINANCE AND
 37 24                    EDUCATION SAVINGS GRANTS
 37 25    Sec. 83.  Section 8.6, Code 2017, is amended by adding the
 37 26 following new subsection:
 37 27    NEW SUBSECTION.  16.  Education savings grant
 37 28 applications.  Adopt rules relating to applications for an
 37 29 education savings grant pursuant to section 257.11B, including
 37 30 application processing timelines, and required information for
 37 31 submission by a parent or guardian.
 37 32    Sec. 84.  NEW SECTION.  257.1A  Transfer of authority and
 37 33 duties.
 37 34    1.  Beginning July 1, 2018, the authority and duties of
 37 35 the department of education, the state board of education,
 38  1 and the director of the department of education under this
 38  2 chapter shall be transferred to the department of management
 38  3 and the director of the department of management.  Accordingly,
 38  4 beginning July 1, 2018, all references to the department of
 38  5 education under this chapter and references to the department
 38  6 of education under other provisions of law relating to this
 38  7 chapter shall mean the department of management and all
 38  8 references to the state board of education or the director
 38  9 of the department of education under this chapter or other
 38 10 provisions of law relating to this chapter shall mean the
 38 11 director of the department of management.
 38 12    2.  Any moneys remaining in any account or fund under the
 38 13 control of the department of education at the conclusion of the
 38 14 fiscal year beginning July 1, 2017, relative to the provisions
 38 15 of this chapter shall be transferred to the control of the
 38 16 department of management for such purposes.  Notwithstanding
 38 17 section 8.33, the moneys transferred in accordance with this
 38 18 subsection shall not revert to the account or fund from which
 38 19 appropriated or transferred.
 38 20    3.  Any contract entered into by the department of education
 38 21 relating to the provisions of this chapter in effect at the
 38 22 conclusion of the fiscal year beginning July 1, 2017, shall
 38 23 continue in full force and effect pending transfer of such
 38 24 contracts to the department of management.
 38 25    4.  Any rule, regulation, form, order, or directive
 38 26 promulgated by the department of education relative to the
 38 27 provisions of this chapter in existence at the conclusion of
 38 28 the fiscal year beginning July 1, 2017, shall continue in full
 38 29 force and effect until amended, repealed, or supplemented by
 38 30 affirmative action of the department of management under the
 38 31 duties and powers established in this chapter and under the
 38 32 procedure established in subsection 5.
 38 33    5.  In regard to updating references and format in the Iowa
 38 34 administrative code in order to correspond to the transferring
 38 35 of duties of this chapter, the administrative rules coordinator
 39  1 and the administrative rules review committee, in consultation
 39  2 with the administrative code editor, shall jointly develop a
 39  3 schedule for the necessary updating of the Iowa administrative
 39  4 code.
 39  5    Sec. 85.  NEW SECTION.  257.11B  Education savings grant
 39  6 program.
 39  7    1.  Pupils eligible to enroll in grades kindergarten through
 39  8 twelve or eligible to participate in a preschool program under
 39  9 chapter 256C and attending a nonpublic school, receiving
 39 10 competent private instruction under chapter 299A, or receiving
 39 11 private preschool instruction shall be eligible to receive an
 39 12 education savings grant in the manner provided in this section
 39 13 for school years beginning on or after July 1, 2018.  Education
 39 14 savings grants shall be made available to parents and guardians
 39 15 in the manner authorized under subsection 4, paragraph "c", for
 39 16 the payment of qualified educational expenses as provided in
 39 17 this section.
 39 18    2.  a.  (1)  By January 31 preceding the school year for
 39 19 which the education savings grant is requested, the parent
 39 20 or guardian of the pupil requesting to receive an education
 39 21 savings grant shall submit an application to the department of
 39 22 management, on application forms developed by the department of
 39 23 management, indicating that the parent or guardian intends to
 39 24 enroll the pupil in a nonpublic school, place the pupil under
 39 25 competent private instruction under chapter 299A, or provide
 39 26 private preschool instruction.
 39 27    (2)  In addition to such information deemed appropriate by
 39 28 the department of management, the application shall require
 39 29 certification from the nonpublic school of the pupil's
 39 30 enrollment for the following school year or a statement
 39 31 indicating the parent or guardian's intent to place the pupil
 39 32 under competent private instruction or private preschool
 39 33 instruction for the following school year.
 39 34    b.  By March 1 preceding the school year for which the
 39 35 education savings grant is requested, the department of
 40  1 management shall notify the parent or guardian of each pupil
 40  2 who is approved to receive an education savings grant and the
 40  3 amount of the grant.
 40  4    c.  Education savings grants shall only be approved for one
 40  5 school year and applications must be submitted annually for
 40  6 education savings grants in subsequent school years.
 40  7    3.  a.  The department of management shall assign each
 40  8 pupil an education savings grant in an amount equal to the
 40  9 difference between eighty=seven and five=tenths percent of
 40 10 the regular program state cost per pupil and the statewide
 40 11 average foundation property tax per pupil for the same school
 40 12 year. However, for a pupil that is eligible to participate
 40 13 in a preschool program under chapter 256C, the amount of the
 40 14 grant shall be an amount equal to fifty percent of the regular
 40 15 program state cost per pupil for the same school year.
 40 16    b.  The department of management shall on July 1 following
 40 17 the determination of the amount of the education savings grant
 40 18 for each approved pupil transfer such amounts to the pupil's
 40 19 account in the education savings grant fund established under
 40 20 subsection 4.  Such amount shall be available to the pupil's
 40 21 parent or guardian in the manner authorized under subsection
 40 22 4, paragraph "c", for the payment of qualified educational
 40 23 expenses incurred by such persons for the pupil during that
 40 24 school year.
 40 25    4.  An education savings grant fund is created in the state
 40 26 treasury under the control of the department of management
 40 27 consisting of moneys appropriated to the department of
 40 28 management for the purpose of providing education savings
 40 29 grants under this section.  For the fiscal year commencing July
 40 30 1, 2018, and each succeeding fiscal year, there is appropriated
 40 31 from the general fund of the state to the department of
 40 32 management to be credited to the fund the amount necessary
 40 33 to pay all education savings grants approved for that fiscal
 40 34 year.  The director of the department of management has all
 40 35 powers necessary to carry out and effectuate the purposes,
 41  1 objectives, and provisions of this section pertaining to the
 41  2 fund, including the power to do all of the following:
 41  3    a.  Make and enter into contracts necessary for the
 41  4 administration of the fund.
 41  5    b.  Procure insurance against any loss in connection with the
 41  6 assets of the fund or require a surety bond.
 41  7    c.  Contract with a private financial management firm to
 41  8 manage the fund, in collaboration with the treasurer of state,
 41  9 including providing for the disbursement of education savings
 41 10 grants in the form of an electronic debit card or checks that
 41 11 are payable directly from the pupil's account within the fund.
 41 12    d.  Conduct audits or other review necessary to properly
 41 13 administer the program.
 41 14    e.  Adopt rules pursuant to chapter 17A for the
 41 15 administration of the fund and accounts within the fund.
 41 16    5.  a.  For each pupil approved for an education savings
 41 17 grant, the department of management shall establish an account
 41 18 for that pupil in the education savings grant fund.  The
 41 19 amount of the pupil's education savings grant determined under
 41 20 subsection 3 shall be deposited into the pupil's account on
 41 21 July 1 and such amount shall be immediately available for the
 41 22 payment of qualified educational expenses incurred by the
 41 23 parent or guardian for the pupil during that fiscal year using
 41 24 the payment method authorized under subsection 4, paragraph
 41 25 "c".
 41 26    b.  A nonpublic school or a provider of competent private
 41 27 instruction that accepts payment from a parent or guardian
 41 28 using funds from a pupil's account in the education savings
 41 29 grant fund shall not refund, rebate, or share any portion of
 41 30 such payment with the parent, guardian, or pupil.
 41 31    c.  Moneys remaining in a pupil's account upon conclusion
 41 32 of the fiscal year shall remain in the pupil's account in the
 41 33 education savings grant fund for the payment of qualified
 41 34 educational expenses in future fiscal years or for the payment
 41 35 of higher education costs under subsection 8.
 42  1    6.  For purposes of this section, "qualified educational
 42  2 expenses" includes tuition and fees at a nonpublic school
 42  3 or nonpublic preschool, textbooks, fees or payments for
 42  4 tutoring or cognitive skills training, curriculum materials,
 42  5 tuition or fees for nonpublic online education programs,
 42  6 education materials and services for pupils with disabilities,
 42  7 standardized test fees, fees required by the department not to
 42  8 exceed for each grant recipient five percent of the total grant
 42  9 amount in any fiscal year, and other expenses incurred by the
 42 10 parent or guardian that are directly related to the education
 42 11 of the pupil at a nonpublic preschool or a nonpublic school,
 42 12 including a nonpublic school accredited by an independent
 42 13 accrediting agency approved by the department of management, or
 42 14 directly related to providing competent private instruction for
 42 15 the pupil under chapter 299A or private preschool instruction.
 42 16 The cost of one computer or other portable computing device
 42 17 shall be allowed as a qualified educational expense for
 42 18 a pupil if such a purchase has not been made using funds
 42 19 from that pupil's account in either of the two immediately
 42 20 preceding fiscal years.  "Qualified educational expenses" do not
 42 21 include transportation costs for the pupil, the cost of food
 42 22 or refreshments consumed by the pupil, the cost of clothing
 42 23 for the pupil, or the cost of disposable materials including
 42 24 but not limited to paper, notebooks, pencils, pens, and art
 42 25 supplies.
 42 26    7.  A person who makes a false claim for the purpose
 42 27 of obtaining an education savings grant provided for in
 42 28 this section or who knowingly receives the grant or makes a
 42 29 payment from an account within the education savings grant
 42 30 fund without being legally entitled to do so is guilty of a
 42 31 fraudulent practice under chapter 714.  The false claim for an
 42 32 education savings grant or a payment from an account shall be
 42 33 disallowed. If amounts from the grant have been disbursed from
 42 34 the applicable account in the education savings grant fund, the
 42 35 department of management shall initiate legal proceedings to
 43  1 recover such amounts. A parent or guardian, or a pupil for
 43  2 purposes of subsection 8, who commits a fraudulent practice
 43  3 under this subsection is prohibited from participating in the
 43  4 education savings grant program in the future.
 43  5    8.  For each pupil with a positive balance in the pupil's
 43  6 account in the education savings grant fund upon graduation
 43  7 from high school or completion of an equivalent level of
 43  8 competent private instruction under chapter 299A, the
 43  9 department of management shall maintain such account in the
 43 10 fund until the pupil is twenty=five years of age. Following
 43 11 graduation from high school until the pupil is twenty=five
 43 12 years of age, moneys in the pupil's account may be used
 43 13 for higher education costs, as defined in section 12D.1,
 43 14 incurred by the pupil while attending an institution of higher
 43 15 education under the control of the state board of regents, a
 43 16 community college located in this state, or a private college
 43 17 or university located in this state. Payments from a pupil's
 43 18 account for higher education costs shall be made in the same
 43 19 manner as payments for qualified educational expenses under
 43 20 subsection 5. Moneys in a pupil's account when the pupil turns
 43 21 twenty=five years of age shall be transferred by the department
 43 22 of management for deposit in the general fund of the state.
 43 23    9.  This section shall not be construed to authorize the
 43 24 state or any political subdivision of the state to exercise
 43 25 authority over any nonpublic school or provider of competent
 43 26 private instruction under chapter 299A or construed to require
 43 27 a nonpublic school to modify its standards for admission or
 43 28 educational program in order to receive payment from a parent
 43 29 or guardian using funds from a pupil's account in the education
 43 30 savings grant fund. A nonpublic school or provider of
 43 31 competent private instruction under chapter 299A that accepts
 43 32 payment from a parent or guardian using funds from a pupil's
 43 33 account in the education savings grant fund is not an agent
 43 34 of this state or of a political subdivision of this state.
 43 35 Rules adopted by the department of management to implement this
 44  1 section that impose an undue burden on a nonpublic school or
 44  2 provider of competent private instruction under chapter 299A
 44  3 are invalid.
 44  4    Sec. 86.  Section 422.7, Code 2017, is amended by adding the
 44  5 following new subsection:
 44  6    NEW SUBSECTION.  51.  Subtract, to the extent included, the
 44  7 amount of an education savings grant under section 257.11B
 44  8 received by the taxpayer for payment of qualified educational
 44  9 expenses.
 44 10    Sec. 87.  APPLICABILITY.  Except as otherwise provided, this
 44 11 division of this Act applies to school budget years and fiscal
 44 12 years beginning on or after July 1, 2018.
 44 13    Sec. 88.  APPLICABILITY.  The section of this division of
 44 14 this Act enacting section 422.7, subsection 51, applies to tax
 44 15 years beginning on or after January 1, 2018.
 44 16    Sec. 89.  EFFECTIVE DATE.  The section of this division of
 44 17 this Act enacting section 257.1A takes effect  July 1, 2018.
 44 18                           DIVISION IV
 44 19              CORRESPONDING AMENDMENTS LEGISLATION
 44 20    Sec. 90.  CORRESPONDING AMENDMENTS LEGISLATION.  Additional
 44 21 legislation is required to fully implement the section of
 44 22 division III of this Act enacting section 257.1A.  The director
 44 23 of the department of education shall, in compliance with
 44 24 section 2.16, prepare draft legislation for submission to the
 44 25 legislative services agency, as necessary, to implement the
 44 26 transition and elimination of authority and duties of the
 44 27 department of education, the state board of education, and
 44 28 director of the department of education under the section
 44 29 of division III of this Act enacting section 257.1A and to
 44 30 implement the transition and elimination of authority and
 44 31 duties under other provisions of law.
 44 32                           EXPLANATION
 44 33 The inclusion of this explanation does not constitute agreement with
 44 34 the explanation's substance by the members of the general assembly.
 44 35    This bill relates to education and school district funding
 45  1 by modifying the duties and authority of certain state and
 45  2 local governmental entities, establishing an education savings
 45  3 grant program, and modifying the school district funding
 45  4 formula.
 45  5    Division I of the bill repeals Code chapter 256, which
 45  6 establishes the department of education, establishes the office
 45  7 of the director of the department of education, establishes
 45  8 the state board of education, specifies certain educational
 45  9 standards, establishes various education programs, establishes
 45 10 certain councils and entities within the department of
 45 11 education, includes provisions relating to the participation in
 45 12 extracurricular activities, establishes the division of library
 45 13 services, includes the library compact, and establishes the
 45 14 public broadcasting division.
 45 15    Division I of the bill also amends and repeals other chapters
 45 16 of the Code relating to education to transition the duties and
 45 17 authority of the department of education, the director of the
 45 18 department of education, and the state board of education to
 45 19 other specified local and state governmental entities beginning
 45 20 July 1, 2018.
 45 21    Division I of the bill takes effect July 1, 2018.
 45 22    Division II of the bill provides that additional legislation
 45 23 is required to fully implement division I of the bill and
 45 24 requires the director of the department of education to
 45 25 prepare draft legislation for submission to the legislative
 45 26 services agency, as necessary, to implement the transition
 45 27 and elimination of authority and duties under division I of
 45 28 the bill and to implement the transition and elimination of
 45 29 authority and duties under other provisions of law including
 45 30 but not limited to the duties and authority of the department
 45 31 of education, the state board of education, the director of
 45 32 the department of education, and any division, commission,
 45 33 or subunit of such entities or offices under specified Code
 45 34 chapters.
 45 35    Division III of the bill provides that beginning July
 46  1 1, 2018, the authority and duties of the department of
 46  2 education, the state board of education, and the director
 46  3 of the department of education under Code chapter 257 are
 46  4 transferred to the department of management and the director
 46  5 of the department of management.  The bill also provides that
 46  6 moneys remaining in any account or fund under the control of
 46  7 the department of education at the conclusion of the fiscal
 46  8 year beginning July 1, 2017, relative to the provisions of Code
 46  9 chapter 257 are transferred to the control of the department
 46 10 of management for such purposes.  The bill provides that
 46 11 any contract entered into by the department of education
 46 12 relating to the provisions of Code chapter 257 in effect at
 46 13 the conclusion of the fiscal year beginning July 1, 2017,
 46 14 shall continue in full force and effect pending transfer of
 46 15 such contracts to the department of management.  The bill also
 46 16 provides for the continuation of any rule, regulation, form,
 46 17 order, or directive promulgated by the department of education
 46 18 until amended, repealed, or supplemented by affirmative action
 46 19 of the department of management.
 46 20    Division III of the bill provides education savings grants
 46 21 for pupils attending a nonpublic school, receiving competent
 46 22 private instruction, or receiving private preschool instruction
 46 23 and establishes an education savings grant fund.
 46 24    Under division III of the bill, pupils eligible to enroll
 46 25 in grades kindergarten through 12 or eligible to participate
 46 26 in a preschool program under Code chapter 256C and attending a
 46 27 nonpublic school, receiving competent private instruction under
 46 28 Code chapter 299A, or receiving private preschool instruction
 46 29 are eligible to receive an education savings grant for school
 46 30 years beginning on or after July 1, 2018.  By January 31
 46 31 preceding the school year for which the education savings grant
 46 32 is requested, the parent or guardian of the pupil requesting to
 46 33 receive an education savings grant must submit an application
 46 34 to the department of management.
 46 35    Division III of the bill requires that by March 1 preceding
 47  1 the school year for which the education savings grant is
 47  2 requested, the department of management  must notify the parent
 47  3 or guardian of each pupil designated to receive an education
 47  4 savings grant and the amount of the education savings grant.
 47  5 Education savings grants may only be approved for one school
 47  6 year and annual applications must be submitted for education
 47  7 savings grants in subsequent school years.
 47  8    The amount of each education savings grant is equal to the
 47  9 statewide average regular program state foundation aid per
 47 10 pupil in the same school year or in the case of a preschool
 47 11 eligible pupil an amount equal to 50 percent of the regular
 47 12 program state cost per pupil.
 47 13    Division III of the bill creates an education savings
 47 14 grant fund in the state treasury under the control of the
 47 15 department of management consisting of moneys appropriated to
 47 16 the department for the purpose of providing education savings
 47 17 grants.  For the fiscal year commencing July 1, 2018, and each
 47 18 succeeding fiscal year, there is appropriated from the general
 47 19 fund of the state to the department of management for deposit
 47 20 in the fund the amount necessary to pay all education savings
 47 21 grants approved for that fiscal year.  For each pupil approved
 47 22 for an education savings grant, the department of management
 47 23 must establish an account for that pupil in the education
 47 24 savings grant fund.  The amount of the pupil's education
 47 25 savings grant is deposited into the pupil's account on July 1
 47 26 and such amount is available for use by parents and guardians
 47 27 for the payment of qualified educational expenses, as defined
 47 28 in the bill, incurred by the parent or guardian for the pupil
 47 29 during that fiscal year.
 47 30    Division III of the bill authorizes the department of
 47 31 management to contract with a private financial management firm
 47 32 to manage the education savings grant fund, in collaboration
 47 33 with the treasurer of state, including providing for the
 47 34 disbursement of education savings grants in the form of an
 47 35 electronic debit card or checks that are payable directly from
 48  1 the pupil's account within the fund.
 48  2    Division III of the bill provides that moneys remaining in a
 48  3 pupil's account upon the conclusion of the fiscal year shall
 48  4 remain in the pupil's account within the education savings
 48  5 grant fund for the payment of qualified educational expenses in
 48  6 future fiscal years or for higher education costs as authorized
 48  7 in the bill.
 48  8    Under the division, for each pupil with a positive balance in
 48  9 the pupil's account in the education savings grant fund upon
 48 10 graduation from high school or completion of an equivalent
 48 11 level of competent private instruction under Code chapter
 48 12 299A, the department of management is required to maintain the
 48 13 account in the fund until the pupil is 25 years old.  Until
 48 14 the pupil is 25 years old, moneys in the pupil's account may
 48 15 be used by the pupil for higher education costs, as defined
 48 16 in Code section 12D.1.  Moneys in a pupil's account when the
 48 17 pupil turns 25 years old are transferred by the department of
 48 18 management for deposit in the general fund of the state.
 48 19    Division III of the bill provides that a person who makes a
 48 20 false claim for the purpose of obtaining an education savings
 48 21 grant or who knowingly receives the grant or makes a payment
 48 22 from an account within the education savings grant fund without
 48 23 being legally entitled to do so is guilty of a fraudulent
 48 24 practice and is subject to a criminal penalty.  The bill allows
 48 25 the department of management to initiate legal proceedings to
 48 26 recover grants and amounts improperly awarded or paid from
 48 27 accounts under the bill.
 48 28    Division III of the bill provides that an education savings
 48 29 grant received by a taxpayer is not taxable income for purposes
 48 30 of state individual income taxation. This provision of the
 48 31 bill applies to tax years beginning on or after January 1,
 48 32 2018.
 48 33    The section of division III of the bill enacting Code section
 48 34 257.1A takes effect July 1, 2018. Division III of the bill
 48 35 applies to school budget years and fiscal years beginning on
 49  1 or after July 1, 2018.
 49  2    Division IV of the bill provides that additional legislation
 49  3 is required to fully implement division III of the bill
 49  4 and requires the director of the department of education to
 49  5 prepare draft legislation for submission to the legislative
 49  6 services agency, as necessary, to implement the transition
 49  7 and elimination of authority and duties of the department of
 49  8 education pursuant to new Code section 257.1A and to implement
 49  9 the transition and elimination of authority and duties under
 49 10 other provisions of law.
       LSB 1270XS (3) 87
       md/sc
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