Senate Study Bill 1065 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BILL) A BILL FOR An Act relating to educational offerings and funding by 1 establishing a student first scholarship program for certain 2 pupils attending nonpublic schools, establishing a student 3 first scholarship fund, providing an income tax exemption, 4 modifying and establishing charter school programs, 5 modifying provisions governing the state’s open enrollment 6 law including voluntary diversity plans, modifying the 7 tuition and textbook tax credit, providing for the educator 8 expense deduction, modifying provisions related to education 9 data collection and permissible education programs and 10 funding, making appropriations, providing penalties, and 11 including effective date, applicability, and retroactive 12 applicability provisions. 13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 14 TLSB 1391XL (18) 89 md/jh

S.F. _____ H.F. _____ DIVISION I 1 STUDENT FIRST SCHOLARSHIP PROGRAM 2 Section 1. Section 256.9, Code 2021, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 63. Adopt rules relating to the 5 administration of and applications for the student first 6 scholarship program pursuant to section 257.11B, including but 7 not limited to application processing timelines and information 8 required to be submitted by a parent or guardian. 9 Sec. 2. NEW SECTION . 257.11B Student first scholarship 10 program. 11 1. a. For the school budget year beginning July 1, 2022, 12 and each succeeding school budget year, the following resident 13 pupils who are attending a nonpublic school, as defined in 14 section 285.16, shall be eligible to receive a student first 15 scholarship in the manner provided in this section: 16 (1) A pupil eligible to enroll in kindergarten who, if 17 enrolled in the pupil’s district of residence, would attend 18 a public school identified for comprehensive support and 19 improvement under the federal Every Student Succeeds Act, Pub. 20 L. No. 114-95. 21 (2) A pupil eligible to enroll in grade one through grade 22 twelve if the pupil has attended a public school identified for 23 comprehensive support and improvement under the federal Every 24 Student Succeeds Act, Pub. L. No. 114-95, for the equivalent 25 of the two immediately preceding semesters for which the 26 student first scholarship is requested and if the pupil is not 27 otherwise ineligible under this section. 28 (3) A pupil who received a student first scholarship for 29 the immediately preceding school budget year, who is eligible 30 to enroll in grade one through grade twelve, and who is not 31 otherwise ineligible under this section. 32 b. Student first scholarships shall be made available to 33 parents and guardians in the manner authorized under subsection 34 4, paragraph “c” , for the payment of qualified educational 35 -1- LSB 1391XL (18) 89 md/jh 1/ 65

S.F. _____ H.F. _____ expenses as provided in this section. 1 c. For purposes of this subsection, “resident” means the 2 same as defined in section 282.1, subsection 2. 3 2. a. (1) By January 31 preceding the school year for 4 which the student first scholarship is requested, the parent or 5 guardian of the pupil requesting a student first scholarship 6 shall submit an application to the department of education, on 7 application forms developed by the department of education, 8 indicating that the parent or guardian intends to enroll the 9 pupil in a nonpublic school for the entirety of the school 10 year. 11 (2) In addition to such information deemed appropriate by 12 the department of education, the application shall require 13 certification from the nonpublic school of the pupil’s 14 enrollment for the following school year. 15 b. By March 1 preceding the school year for which the 16 student first scholarship is requested, the department of 17 education shall determine the number of pupils in each school 18 district approved to receive a scholarship for the following 19 school year and shall notify the parent or guardian of each 20 pupil approved for the following school year to receive a 21 scholarship and the amount of the scholarship for the pupil. 22 c. Student first scholarships shall only be approved for 23 one school year and applications must be submitted annually for 24 student first scholarships in subsequent school years. 25 3. The department of education shall assign each pupil a 26 student first scholarship in an amount equal to the sum of all 27 the following for the same school budget year: 28 a. The product of the pupil’s weighted enrollment that 29 would otherwise be assigned to the pupil under this chapter if 30 the pupil was enrolled in the pupil’s district of residence 31 multiplied by the difference between eighty-seven and 32 five-tenths percent of the regular program state cost per pupil 33 and the statewide average foundation property tax per pupil. 34 b. The total teacher salary supplement district cost per 35 -2- LSB 1391XL (18) 89 md/jh 2/ 65

S.F. _____ H.F. _____ pupil for the pupil’s district of residence. 1 c. The total professional development supplement district 2 cost per pupil for the pupil’s district of residence. 3 d. The total early intervention supplement district cost per 4 pupil for the pupil’s district of residence. 5 e. The total area education agency teacher salary supplement 6 district cost per pupil for the pupil’s district of residence. 7 f. The total area education agency professional development 8 supplement district cost per pupil for the pupil’s district of 9 residence. 10 g. The total teacher leadership supplement district cost per 11 pupil for the pupil’s district of residence. 12 4. A student first scholarship fund is created in the 13 state treasury under the control of the department of 14 education consisting of moneys appropriated to the department 15 of education for the purpose of providing student first 16 scholarships under this section. For the fiscal year 17 commencing July 1, 2022, and each succeeding fiscal year, there 18 is appropriated from the general fund of the state to the 19 department of education to be credited to the fund the amount 20 necessary to pay all student first scholarships approved for 21 that fiscal year. The director of the department of education 22 has all powers necessary to carry out and effectuate the 23 purposes, objectives, and provisions of this section pertaining 24 to the fund, including the power to do all of the following: 25 a. Make and enter into contracts necessary for the 26 administration of the fund. 27 b. Procure insurance against any loss in connection with the 28 assets of the fund or require a surety bond. 29 c. Contract with a private financial management firm to 30 manage the fund, in collaboration with the treasurer of state, 31 including providing for the disbursement of student first 32 scholarships in the form of an electronic debit card or checks 33 that are payable directly from the pupil’s account within the 34 fund. 35 -3- LSB 1391XL (18) 89 md/jh 3/ 65

S.F. _____ H.F. _____ d. Conduct audits or other reviews necessary to properly 1 administer the program. 2 e. Adopt rules for the administration of the fund and 3 accounts within the fund. 4 5. a. For each pupil approved for a student first 5 scholarship, the department of education shall establish an 6 account for that pupil in the student first scholarship fund. 7 The amount of the pupil’s student first scholarship shall be 8 deposited into the pupil’s account on July 1, and such amount 9 shall be immediately available for the payment of qualified 10 educational expenses incurred by the parent or guardian for 11 the pupil during that fiscal year using the payment method 12 authorized under subsection 4, paragraph “c” . 13 b. A nonpublic school that accepts payment from a parent 14 or guardian using funds from a pupil’s account in the student 15 first scholarship fund shall not refund, rebate, or share any 16 portion of such payment with the parent, guardian, or pupil. 17 c. Moneys remaining in a pupil’s account upon conclusion 18 of the fiscal year shall remain in the pupil’s account in the 19 student first scholarship fund for the payment of qualified 20 educational expenses in future fiscal years during which the 21 pupil participates in the program or for the payment of higher 22 education costs as provided under subsection 8. 23 6. a. For purposes of this section, “qualified educational 24 expenses” includes tuition and fees at a nonpublic school, 25 textbooks, fees or payments for educational therapies, 26 including tutoring or cognitive skills training, curriculum 27 fees and materials for a course of study for a specific subject 28 matter or grade level, tuition or fees for nonpublic online 29 education programs, tuition for vocational and life skills 30 education approved by the department of education, education 31 materials and services for pupils with disabilities, including 32 the cost of paraprofessionals and assistants who are trained 33 in accordance with state law, standardized test fees, advanced 34 placement examinations or examinations related to postsecondary 35 -4- LSB 1391XL (18) 89 md/jh 4/ 65

S.F. _____ H.F. _____ education admission or credentialing, qualified education 1 expenses, as defined in section 12D.1, excluding room and board 2 expenses, and other expenses incurred by the parent or guardian 3 that are directly related to the education of the pupil at a 4 nonpublic school, including a nonpublic school accredited by 5 an independent accrediting agency approved by the department 6 of education. 7 b. “Qualified educational expenses” does not include 8 transportation costs for the pupil, the cost of food or 9 refreshments consumed by the pupil, the cost of clothing for 10 the pupil, or the cost of disposable materials, including 11 but not limited to paper, notebooks, pencils, pens, and art 12 supplies. 13 7. a. A person who makes a false claim for the purpose 14 of obtaining a student first scholarship provided for in this 15 section or who knowingly receives the scholarship or makes a 16 payment from an account within the student first scholarship 17 fund without being legally entitled to do so is guilty of a 18 fraudulent practice under chapter 714. The false claim for a 19 student first scholarship or a payment from an account shall 20 be disallowed. The department of education shall also close 21 the pupil’s account in the student first scholarship fund and 22 transfer any remaining moneys in the account for deposit in the 23 general fund of the state. If the improperly obtained amounts 24 from the scholarship have been disbursed from the applicable 25 account in the student first scholarship fund, the department 26 of education shall recover such amounts from the parent or 27 guardian, or from the pupil for purposes of subsection 8, 28 including by initiating legal proceedings to recover such 29 amounts, if necessary. A parent or guardian, or a pupil for 30 purposes of subsection 8, who commits a fraudulent practice 31 under this section is prohibited from participating in the 32 student first scholarship program in the future. 33 b. If, prior to the end of the required attendance 34 period of the school year, a pupil who receives a student 35 -5- LSB 1391XL (18) 89 md/jh 5/ 65

S.F. _____ H.F. _____ first scholarship withdraws from enrollment in the nonpublic 1 school or is expelled, the nonpublic school shall notify the 2 department of education in writing of the pupil’s withdrawal 3 or expulsion, and the pupil’s parent or guardian shall notify 4 the department of education of the pupil’s withdrawal or 5 expulsion from the nonpublic school. A pupil’s expulsion 6 from the nonpublic school prior to the end of the required 7 attendance period for the school year shall invalidate the 8 pupil’s eligibility for the student first scholarship for the 9 school budget year. A pupil’s withdrawal from a nonpublic 10 school prior to the end of the required attendance period of 11 the school year shall invalidate the pupil’s eligibility for 12 the student first scholarship for the school budget year unless 13 the withdrawal is the result of a change in residence of the 14 pupil and the pupil, following written notice by the parent 15 or guardian and certification by the new nonpublic school to 16 the department of education, enrolls in a different nonpublic 17 school in this state for the remainder of the school year. 18 c. (1) Upon receipt of a notice of expulsion under 19 paragraph “b” , the department of education shall close the 20 pupil’s account in the student first scholarship fund and 21 transfer any remaining moneys in the account for deposit in 22 the general fund of the state. In addition, if amounts from 23 the scholarship for the school budget year during which the 24 pupil is expelled have been disbursed from the expelled pupil’s 25 account in the student first scholarship fund, the department 26 of education shall recover such amounts from the parent or 27 guardian, including by initiating legal proceedings to recover 28 such amounts, if necessary. 29 (2) Upon receipt of a notice of withdrawal under paragraph 30 “b” and a determination that the pupil’s withdrawal was not the 31 result of a change in residence, the department of education 32 shall cease disbursements of remaining moneys in the pupil’s 33 account in the student first scholarship fund and maintain the 34 pupil’s account if and until such time that the pupil uses the 35 -6- LSB 1391XL (18) 89 md/jh 6/ 65

S.F. _____ H.F. _____ funds for qualified education expenses under subsection 8. In 1 addition, if amounts from the scholarship for the school budget 2 year during which the withdrawal occurs have been disbursed 3 from the pupil’s account in the student first scholarship fund, 4 the department of education shall recover such amounts from the 5 parent or guardian to the extent the amount disbursed exceeds 6 the amount of the scholarship proportionate to the remaining 7 portion of the school year following the withdrawal, including 8 by initiating legal proceedings to recover such amounts, if 9 necessary. 10 (3) Upon receipt of a notice of withdrawal under paragraph 11 “b” and a determination that the withdrawal was the result of 12 a change in residence but that the pupil did not enroll in 13 a different nonpublic school in this state for the remainder 14 of the school year, the department of education shall cease 15 disbursements of remaining moneys in the pupil’s account in 16 the student first scholarship fund and maintain the pupil’s 17 account if and until such time that the pupil uses the funds 18 for qualified education expenses under subsection 8. 19 (4) If a pupil’s eligibility is invalidated under the 20 provisions of paragraph “b” , the pupil shall be ineligible for a 21 student first scholarship for the following school budget year 22 under subsection 1, paragraph “a” , subparagraphs (2) and (3). 23 8. a. For each pupil with a positive balance in the pupil’s 24 account in the student first scholarship fund upon graduation 25 from high school, the department of education shall maintain 26 the account in the fund until the pupil is twenty-three years 27 of age. Following graduation from high school until the pupil 28 is twenty-three years of age, moneys in the pupil’s account may 29 be used for qualified education expenses, as defined in section 30 12D.1, incurred by the pupil while attending an institution 31 of higher education under the control of the state board of 32 regents, a community college located in this state, or a 33 private college or university located in this state. Payments 34 from a pupil’s account for higher education costs shall be 35 -7- LSB 1391XL (18) 89 md/jh 7/ 65

S.F. _____ H.F. _____ made in the same manner as payments for qualified educational 1 expenses under subsection 5. Moneys in a pupil’s account when 2 the pupil turns twenty-three years of age shall be transferred 3 by the department of education for deposit in the general fund 4 of the state. 5 b. Notwithstanding the age limitation in paragraph “a” , if 6 the pupil with a positive balance in the pupil’s account in 7 the student first scholarship fund upon graduation from high 8 school serves on federal active duty, other than training, and 9 is discharged under honorable conditions, the limitation date 10 otherwise applicable under paragraph “a” shall be extended 11 by one year for each year of federal active duty service by 12 the pupil, but not to a date after the pupil’s twenty-seventh 13 birthday. 14 9. a. A parent may appeal to the state board of education 15 any administrative decision the department of education 16 makes pursuant to this section, including but not limited 17 to determinations of eligibility, allowable expenses, and 18 removal from the program. The department shall notify the 19 parent or guardian in writing of the appeal process at the same 20 time the department notifies the parent or guardian of the 21 administrative decision. The state board of education shall 22 establish the appeals process consistent with chapter 17A and 23 shall post such appeal process information on the state board 24 of education’s internet site. 25 b. The state board of education may refer cases of 26 substantial misuse of student first scholarship funds to the 27 attorney general for the purpose of collection or for the 28 purpose of a criminal investigation if the state board of 29 education obtains evidence of fraudulent use of an account. 30 10. This section shall not be construed to authorize the 31 state or any political subdivision of the state to exercise 32 authority over any nonpublic school or construed to require 33 a nonpublic school to modify its academic standards for 34 admission or educational program in order to receive payment 35 -8- LSB 1391XL (18) 89 md/jh 8/ 65

S.F. _____ H.F. _____ from a parent or guardian using funds from a pupil’s account 1 in the student first scholarship fund. A nonpublic school 2 that accepts payment from a parent or guardian using funds 3 from a pupil’s account in the student first scholarship fund 4 is not an agent of this state or of a political subdivision 5 of this state. Rules adopted by the department of education 6 to implement this section that impose an undue burden on a 7 nonpublic school are invalid. 8 Sec. 3. Section 422.7, Code 2021, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 51. Subtract, to the extent included, the 11 amount of a student first scholarship under section 257.11B 12 received by the taxpayer for payment of qualified educational 13 expenses. 14 Sec. 4. APPLICABILITY. The following applies to school 15 budget years and fiscal years beginning on or after July 1, 16 2022: 17 The section of this division of this Act enacting section 18 257.11B. 19 Sec. 5. APPLICABILITY. The following applies to tax years 20 beginning on or after January 1, 2022: 21 The section of this division of this Act enacting section 22 422.7, subsection 51. 23 DIVISION II 24 CHARTER SCHOOL PROGRAMS 25 Sec. 6. NEW SECTION . 256E.1 Establishment of charter 26 schools —— purpose. 27 1. Charter schools shall be part of the state’s program of 28 public education. 29 2. A charter school may be established by either of the 30 following methods: 31 a. A school board may create a founding group to apply 32 to the state board for approval to establish and operate a 33 charter school within and as a part of the school district by 34 establishing a new attendance center, creating a new school 35 -9- LSB 1391XL (18) 89 md/jh 9/ 65

S.F. _____ H.F. _____ within an existing attendance center, or by converting an 1 existing attendance center to charter status. 2 b. A founding group may apply to the state board for 3 approval to establish and operate a charter school within the 4 boundaries of the state that operates as a new attendance 5 center independently from a public school district. 6 3. The purpose of a charter school established pursuant to 7 this chapter shall be to accomplish the following: 8 a. Improve student learning, well-being, and postsecondary 9 success. 10 b. Increase learning opportunities for students in areas 11 of need in this state, including but not limited to science, 12 technology, engineering, and math (STEM), and science, 13 technology, engineering, arts, and math (STEAM). 14 c. Increase opportunities for work-based learning, early 15 literacy intervention, and serving at-risk populations. 16 d. Accelerating student learning to prevent learning loss 17 during the COVID-19 pandemic and other significant disruptions 18 to student learning. 19 e. Encourage the use of evidence-based practices in 20 innovative environments. 21 f. Require the measurement and evaluation of program 22 implementation and learning outcomes. 23 g. Establish models of success for Iowa schools. 24 h. Create new professional opportunities for teachers and 25 other educators. 26 i. Investigate and establish different organizational 27 structures for schools to use to implement a multi-tiered 28 system of supports for students. 29 j. Allow greater flexibility to meet the education needs of 30 a diverse student population and changing workforce needs. 31 k. Allow for the flexible allocation of resources through 32 implementation of specialized school budgets for the benefit 33 of the schools served. 34 l. Allow greater flexibility for districts and schools to 35 -10- LSB 1391XL (18) 89 md/jh 10/ 65

S.F. _____ H.F. _____ focus on closing gaps in student opportunity and achievement 1 for all students from preschool through postsecondary 2 preparation. 3 4. The state board of education shall be the only authorizer 4 of charter schools under this chapter. 5 Sec. 7. NEW SECTION . 256E.2 Definitions. 6 As used in this chapter, unless the context otherwise 7 requires: 8 1. “Attendance center” means a school building that contains 9 classrooms used for instructional purposes for elementary, 10 middle, or secondary school students. 11 2. “Charter school” means a school established in accordance 12 with this chapter. 13 3. “Department” means the department of education. 14 4. “Education service provider” means an education 15 management organization, charter school management 16 organization, or other person with whom a charter school 17 contracts for educational program implementation or 18 comprehensive management. 19 5. “Founding group” means a person, group of persons, 20 or education service provider that develops and submits an 21 application for a charter school to the state board under this 22 chapter. 23 6. “Governing board” means the independent board of a 24 charter school whose members are elected or selected pursuant 25 to the charter school contract. 26 7. “School board” means a board of directors regularly 27 elected by the registered voters of an accredited public school 28 district. 29 8. “State board” means the state board of education. 30 Sec. 8. NEW SECTION . 256E.3 Department —— duty to monitor. 31 The department shall monitor the effectiveness of charter 32 schools and shall implement the applicable provisions of this 33 chapter. 34 Sec. 9. NEW SECTION . 256E.4 School board-state board model. 35 -11- LSB 1391XL (18) 89 md/jh 11/ 65

S.F. _____ H.F. _____ 1. A school board may create a founding group to apply 1 to the state board for approval to establish and operate a 2 charter school within and as a part of the school district by 3 establishing a new attendance center, creating a new school 4 within an existing attendance center, or by converting an 5 existing attendance center. The application shall demonstrate 6 the founding group’s academic and operational vision and plans 7 for the proposed charter school, demonstrate the founding 8 group’s capacity to execute the vision and plans, and provide 9 the state board a clear basis for assessing the founding 10 group’s plans and capacity. 11 2. The state board shall adopt rules to establish 12 appropriate application timelines and deadlines for the 13 submission of charter school applications under this section. 14 3. The instructions for completing an application shall 15 include or otherwise inform applicants of all of the following: 16 a. The performance framework adopted by the state board 17 for charter school oversight and evaluation requirements in 18 accordance with sections 256E.9 and 256E.10. 19 b. The criteria the state board will use in evaluating 20 applications. 21 c. The requirements concerning the format and content 22 essential for applicants to demonstrate the capacities 23 necessary to establish and operate a successful charter school. 24 4. An application submitted under this section shall also 25 include all of the following items related to the proposed 26 charter school: 27 a. An executive summary. 28 b. The mission and vision of the proposed charter school, 29 including identification of the targeted student population and 30 the community the charter school intends to serve. 31 c. The location of the proposed charter school or the 32 proposed geographic area within the school district where the 33 school is proposed to be located. 34 d. Identification of the grades to be served each school 35 -12- LSB 1391XL (18) 89 md/jh 12/ 65

S.F. _____ H.F. _____ year during the duration of the charter school contract. 1 e. Minimum, planned, and maximum enrollment per grade for 2 each school year during the duration of the charter school 3 contract. 4 f. Evidence of need and community support for the proposed 5 charter school. 6 g. Background information on the members of the founding 7 group and background information on the governing board, 8 administration, and management personnel of the proposed 9 charter school, if available. 10 h. The charter school’s proposed operations calendar and 11 sample daily schedule. 12 i. A description of the academic program and identification 13 of ways the program aligns with state academic standards. 14 j. A description of the charter school’s instructional 15 model, including the type of learning environment, class size 16 and structure, curriculum overview, and teaching methods. 17 k. The charter school’s plan for using internal and external 18 assessments to measure and report student progress on the 19 performance framework in accordance with section 256E.9. 20 l. Plans for identifying and serving students with 21 disabilities, students who are limited English proficient, 22 students who are academically failing or below grade level, and 23 gifted students, including but not limited to compliance with 24 applicable laws and regulations. 25 m. A description of cocurricular and extracurricular 26 programs and how the programs will be funded and delivered. 27 n. Plans and timelines for student recruitment, enrollment, 28 and transfers, including enrollment preferences and procedures 29 for conducting transparent admissions selections, including 30 admissions lotteries. 31 o. The proposed code of student conduct, including 32 applicable procedures and disciplinary sanctions for both 33 general students and special education students. 34 p. A chart or description of the charter school’s 35 -13- LSB 1391XL (18) 89 md/jh 13/ 65

S.F. _____ H.F. _____ organizational structure and the duties and powers of each 1 position or group, including the delineation of authority and 2 reporting between the governing board, administration, staff, 3 and any related bodies or external organizations that have a 4 role in managing the charter school. 5 q. A staffing chart for the charter school’s first year 6 and a staffing plan for the duration of the charter school 7 contract. 8 r. Plans for recruiting and developing school 9 administrators, staff, and governing board members and the 10 charter school’s employment policies, including performance 11 evaluation plans. 12 s. Proposed governing bylaws for the charter school. 13 t. Identification and explanation of any partnerships or 14 contractual relationships with the founding group or any of the 15 founding group or school board’s members that are related to 16 the charter school’s operations or mission. 17 u. The charter school’s plans for providing transportation 18 services, food service, and all other operational or ancillary 19 services. 20 v. Proposed opportunities and expectations for parent 21 involvement. 22 w. A detailed school start-up plan and five-year plan, 23 including all relevant assumptions used, identifying timelines 24 for charter school finances, budget, and insurance coverage, 25 facility construction, preparation, and contingencies, and the 26 identification of persons or positions responsible for each 27 such item. 28 x. Evidence of anticipated fundraising contributions, if 29 any. 30 y. Evidence of the founding group’s success in serving 31 student populations similar to that which is proposed in the 32 application and if the founding group operates other charter 33 schools, evidence of past performance of such other charter 34 schools and evidence of the founding group’s capacity for an 35 -14- LSB 1391XL (18) 89 md/jh 14/ 65

S.F. _____ H.F. _____ additional charter school. 1 z. A description of the charter school governing board’s 2 performance evaluation measures, compensation structure, 3 methods of contract oversight and dispute resolution, 4 investment disclosures and conflicts of interest. 5 aa. A proposed duration and outline of the charter school 6 contract, including designation of roles, authority, and duties 7 of the governing board and the charter school staff. 8 5. If the founding group proposes to establish a charter 9 school by converting an existing attendance center of the 10 school district, the state board shall not approve the 11 application unless the founding group submits evidence that 12 the attendance center’s teachers and parents or guardians of 13 students enrolled at the existing attendance center voted in 14 favor of the conversion. A vote in favor of conversion under 15 this subsection requires the support of a majority of the 16 teachers employed at the school on the date of the vote and 17 a majority of the parents or guardians voting whose children 18 are enrolled at the school, provided that a majority of the 19 parents or guardians eligible to vote participate in the ballot 20 process. The state board shall establish procedures by rule 21 for voting under this subsection. A parent or guardian voting 22 in accordance with this subsection must be a resident of this 23 state. 24 6. In reviewing and evaluating charter school applications, 25 the state board shall employ procedures, practices, and 26 criteria consistent with nationally recognized principles and 27 standards for reviewing charter school applications. Each 28 application review shall include thorough evaluation of the 29 written application, an in-person interview with the founding 30 group, and an opportunity in a public forum for local residents 31 to learn about and provide input on each application. 32 7. Following review of a charter school application and 33 completion of the process required under subsection 6, the 34 state board shall do all of the following: 35 -15- LSB 1391XL (18) 89 md/jh 15/ 65

S.F. _____ H.F. _____ a. Approve a charter school application only if the founding 1 group has demonstrated competence in each element of the 2 approval criteria and if the founding group is likely to open 3 and operate a successful charter school. 4 b. Make application decisions on documented evidence 5 collected through the application review process. 6 c. Adhere to the policies and criteria that are transparent, 7 based on merit, and avoid conflicts of interest or any 8 appearance thereof. 9 8. The state board shall approve a charter school 10 application if the application satisfies the requirements of 11 this chapter. The state board shall approve or deny a charter 12 school application no later than seventy-five calendar days 13 after the application is received. If the state board denies 14 an application, the state board shall provide notice of denial 15 to the founding group in writing within thirty days after the 16 state board’s action. The notice shall specify the exact 17 reasons for denial and provide documentation supporting those 18 reasons. An approval decision may include, if appropriate, 19 reasonable conditions that the founding group must meet before 20 a charter school contract may be executed pursuant to section 21 256E.6. An approved charter application shall not serve as a 22 charter school contract. 23 9. A decision of the state board relating to an application 24 under this section is not appealable. 25 10. An unsuccessful applicant under this section may 26 subsequently reapply to the state board. 27 Sec. 10. NEW SECTION . 256E.5 Founding group-state board 28 model. 29 1. A founding group may apply to the state board for 30 approval to establish and operate a charter school within the 31 boundaries of the state that operates as a new attendance 32 center independently from a public school district. The 33 application shall demonstrate the founding group’s academic 34 and operational vision and plans for the proposed charter 35 -16- LSB 1391XL (18) 89 md/jh 16/ 65

S.F. _____ H.F. _____ school, demonstrate the founding group’s capacity to execute 1 the vision and plans, and provide the state board a clear basis 2 for assessing the founding group’s plans and capacity. 3 2. The state board shall adopt rules to establish 4 appropriate application timelines and deadlines for the 5 submission of charter school applications under this section. 6 3. The instructions for completing an application shall 7 include or otherwise inform applicants of all of the following: 8 a. The performance framework adopted by the state board 9 for charter school oversight and evaluation requirements in 10 accordance with sections 256E.9 and 256E.10. 11 b. The criteria the state board will use in evaluating 12 applications. 13 c. The requirements concerning the format and content 14 essential for applicants to demonstrate the capacities 15 necessary to establish and operate a successful charter school. 16 4. The applications submitted under this section shall also 17 include all of the following items related to the proposed 18 charter school: 19 a. An executive summary. 20 b. The mission and vision of the proposed charter school, 21 including identification of the targeted student population and 22 the community the school intends to serve. 23 c. The location of the proposed charter school or the 24 proposed geographic area within the state where the school is 25 proposed to be located. 26 d. Identification of the grades to be served each school 27 year during the duration of the charter school contract. 28 e. Minimum, planned, and maximum enrollment per grade for 29 each school year during the duration of the charter school 30 contract. 31 f. Evidence of need and community support for the proposed 32 charter school. 33 g. Background information on the members of the founding 34 group and background information on the governing board, 35 -17- LSB 1391XL (18) 89 md/jh 17/ 65

S.F. _____ H.F. _____ administration, and management personnel of the proposed 1 charter school, if available. 2 h. The charter school’s proposed operations calendar and 3 sample daily schedule. 4 i. A description of the academic program and identification 5 of ways the program aligns with state academic standards. 6 j. A description of the charter school’s instructional 7 model, including the type of learning environment, class size 8 and structure, curriculum overview, and teaching methods. 9 k. The charter school’s plan for using internal and external 10 assessments to measure and report student progress on the 11 performance framework in accordance with section 256E.9. 12 l. Plans for identifying and serving students with 13 disabilities, students who are limited English proficient, 14 students who are academically failing or below grade level, and 15 gifted students, including but not limited to compliance with 16 applicable laws and regulations. 17 m. A description of cocurricular and extracurricular 18 programs and how the programs will be funded and delivered. 19 n. Plans and timelines for student recruitment, enrollment, 20 and transfers, including enrollment preferences and procedures 21 for conducting transparent admissions selections, including 22 admissions lotteries. 23 o. The proposed code of student conduct, including 24 applicable procedures and disciplinary sanctions for both 25 general students and special education students. 26 p. A chart or description of the charter school’s 27 organizational structure and the duties and powers of each 28 position or group, including the delineation of authority and 29 reporting between the governing board, staff, and any related 30 bodies or external organizations that have a role in managing 31 the charter school. 32 q. A staffing chart for the charter school’s first year 33 and a staffing plan for the duration of the charter school 34 contract. 35 -18- LSB 1391XL (18) 89 md/jh 18/ 65

S.F. _____ H.F. _____ r. Plans for recruiting and developing school 1 administrators, staff, and governing board members and the 2 charter school’s employment policies, including performance 3 evaluation plans. 4 s. Proposed governing bylaws for the charter school. 5 t. Identification and explanation of any partnerships or 6 contractual relationships with an education service provider 7 that are related to the charter school’s operations or mission. 8 u. The charter school’s plans for providing transportation 9 services, food service, and all other operational or ancillary 10 services. 11 v. Proposed opportunities and expectations for parent 12 involvement. 13 w. A detailed school start-up plan and five-year plan, 14 including all relevant assumptions used, identifying timelines 15 for charter school finances, budget, and insurance coverage, 16 facility construction, preparation, and contingencies, and the 17 identification of persons or positions responsible for each 18 such item. 19 x. Evidence of anticipated fundraising contributions, if 20 any. 21 y. If the application includes a proposal that the governing 22 board contracts with an education service provider, evidence 23 of the education service provider’s success in serving 24 student populations similar to that which is proposed in the 25 application and if the education service provider operates 26 other charter schools, evidence of past performance of such 27 other charter schools and evidence of the education service 28 provider’s capacity for growth. 29 z. If the application includes a proposal that the 30 governing board contracts with an education service provider, 31 a description of the education service provider’s performance 32 evaluation measures, compensation structure, methods of 33 contract oversight and dispute resolution, investment 34 disclosures and conflicts of interest. 35 -19- LSB 1391XL (18) 89 md/jh 19/ 65

S.F. _____ H.F. _____ aa. A proposed duration and outline of the charter school 1 contract, including designation of roles, authority, and duties 2 of the governing board and the charter school staff. 3 5. In reviewing and evaluating charter school applications, 4 the state board shall employ procedures, practices, and 5 criteria consistent with nationally recognized principles and 6 standards for reviewing charter school applications. Each 7 application review shall include thorough evaluation of the 8 written application, an in-person interview with the applicant, 9 and an opportunity in a public forum for local residents of the 10 public school district within which the applicant proposes to 11 locate the charter school to learn about and provide input on 12 each application. 13 6. Following review of a charter school application and 14 completion of the process required under subsection 5, the 15 state board shall do all of the following: 16 a. Approve a charter school application only if the 17 applicant has demonstrated competence in each element of the 18 state board’s published approval criteria and the applicant is 19 likely to open and operate a successful charter school. 20 b. Make application decisions on documented evidence 21 collected through the application review process. 22 c. Adhere to the policies and criteria that are transparent, 23 based on merit, and avoid conflicts of interest or any 24 appearance thereof. 25 7. A charter school application under this section shall 26 not be approved if the founding group has another pending 27 application under this section. 28 8. The state board shall approve a charter school 29 application if the application satisfies the requirements 30 of this chapter. The state board shall approve or deny a 31 charter school application no later than seventy-five calendar 32 days after the application is received. If the state board 33 denies an application, the state board shall provide notice of 34 denial to the applicant in writing within thirty days after 35 -20- LSB 1391XL (18) 89 md/jh 20/ 65