Modifying and establishing charter school programs and making appropriations

Sponsored by the House Education Committee

Topics:K–12 education LGBTQIA+

Same legislation: HSB 242

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedFebruary 23, 2021
Done: SubcommitteeFebruary 23, 2021
Done: House committeeMarch 4, 2021
Done: Passes the HouseMarch 24, 202155–40
Done: Senate committeeApril 1, 2021
Done: Passes the SenateApril 28, 202130–18
Done: To the GovernorMay 19, 2021
Done: Signed into lawMay 19, 2021

Signed into law What’s a funnel?

What’s in it

AI summary Iowa is creating a new program for charter schools that allows them to be run either as part of a local school district or as independent schools. These schools must be nonreligious, free for Iowa residents, and follow specific state rules for safety, special education, and teacher licensing. The state board of education will approve applications, monitor how the schools are performing, and can take action if a school does not meet its requirements.¹

Read the official explanation

This bill establishes a new charter school program within the state under new Code chapter 256E and prohibits new charter schools from being established on or after July 1, 2021, under the existing charter school program, Code chapter 256F. Charter schools established under Code chapter 256F prior to July 1, 2021, shall continue to operate under and be subject to the requirements of that Code chapter. The bill creates two models by which a charter school may be established: (1) school board-state board model, under which a school board may create a founding group to apply to the state board of education (state board) for approval to establish and operate a charter school within and as a part of the school district by establishing a new attendance center, creating a new school within an existing attendance center, or converting an existing attendance center; and (2) founding group-state board model, under which a founding group may apply to the state board for approval to establish and operate a charter school within the boundaries of the state that operates independently from any public school district as a new attendance center. The bill defines “founding group” to mean a person, group of persons, or education service provider that develops and submits an application for a charter school to the state board. The bill defines “governing board” to mean the independent board of a charter school whose members are elected or selected pursuant to the charter school’s application and charter school contract. The bill establishes requirements for charter school application contents and procedure, requires the state board to adopt rules to establish appropriate application timelines and deadlines for the submission of charter school applications, and establishes standards for reviewing charter school applications by the state board, as specified in the bill. Each application review includes evaluation of the written application, an in-person interview with the applicant, and an opportunity in a public forum for local residents of the public school district within which the applicant proposes to locate the charter school to learn about and provide input on each application. The bill establishes provisions governing the approval or denial of a charter school application and the timing of such a decision, including the prohibition on approving an application if the applicant has another pending charter school application. The decision of the state board as to a charter school application is not appealable. After approval of the charter school application, the applicant and the state board must execute a charter school contract setting forth the operational performance expectations and measures by which the charter school will be evaluated. An initial charter school contract shall be granted for a term of school budget years. The contract may provide for requirements or conditions to govern and monitor the start-up progress of an approved charter school prior to the opening of the charter school including but not limited to conditions to ensure that the charter school meets all building, health, safety, insurance, and other legal requirements. A charter school established under the bill has all the powers necessary for carrying out the terms of the charter school contract including those powers specified in the bill.10(1), unless waived by the state board during the application process. The bill requires a charter school to employ or contract with teachers who hold a valid license with an endorsement for the type of instruction or service for which the teacher is employed or under contract and establishes requirements for charter schools relating to enrollment and admissions policies. Upon enrollment of an eligible student, the charter school is required to notify the public school district of residence. Each student enrolled in a charter school established under the bill shall be counted, for state school foundation purposes, in the student’s district of residence. The school district of residence is then required to pay to the charter school in which the student is enrolled an amount equal to the sum of the state cost per pupil for the previous school year plus the teacher leadership supplement state cost per pupil for the previous school year plus any moneys received for the pupil as a result of the non-English speaking weighting for the previous school year multiplied by the state cost per pupil for the previous school year. If a student is an eligible pupil under the postsecondary enrollment options program, the charter school shall pay the tuition reimbursement amount to an eligible postsecondary institution. The bill also establishes provisions governing the payments to charter schools in the first year of operation. The bill establishes requirements for the performance provisions within the charter school contract that will guide the evaluation of the charter school by the state board. The state board is required to monitor the performance and compliance of each charter school it approves, including collecting and analyzing data according to the charter school contract in order to meet the requirements of the charter school contract and the bill. As part of the charter school contract, the charter school may be required to submit an annual report to assist the state board in evaluating the charter school’s performance and compliance with the performance framework. The bill also establishes provisions to govern situations where a charter school’s performance under the charter school contract or compliance with applicable laws or rules is unsatisfactory, including the authority to take appropriate corrective actions, impose sanctions, or revoke the contract. A charter school contract may be renewed for periods of time not to exceed an additional years. The bill also establishes provisions that govern the renewal process for a charter school contract, including standards under which the state board must operate when reviewing a charter school contract renewal application. The bill requires that, prior to any charter school closure decision, the state board must develop a charter school closure protocol to ensure timely notice to parents, provide for the orderly transition of students and student records to new schools, and to provide proper disposition of school funds, property, and assets. The bill also specifies the priority to be used when satisfying obligations of a charter school after its closure. Under the bill, each charter school is required to prepare and file an annual report with the department of education, the contents of which shall be determined by the department by rule. The state board of education is required to prepare and file with the general assembly by December 1, annually, a comprehensive report including items specified in the bill, along with findings and recommendations relating to the charter school program in the state and whether the charter school program is meeting the goals and purposes of the program.

Changed since by amendments H-1272, H-1271, H-1255, H-1240; see Amendments.

Full bill text · What changed before it passed²

Senate subcommittee

Named March 25, 2021. On March 30, 2021 it recommended passage. [].

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

Can’t be estimated Compare with other bills

AI summary This bill creates a new charter school program that allows for schools to be established either through local school boards or as independent entities. The state's Department of Education may see increased administration costs and a need for more staff to oversee the new schools, but the exact impact is unknown. Because the number of students enrolling in these schools cannot be predicted, the cost of the required General Fund appropriation cannot be estimated at this time.³

Read the fiscal note

Description

House File 813 establishes Iowa Code chapter 256E, which creates a new charter school program and provides for two pathways to establish a charter school in the State. A charter school can be established through application by a founding group created by a local school board, thereby creating a new attendance center that would be part of a public school district. A charter school can also be established through application by a founding group not created by a local school board, thereby creating a charter school independent of a public school district and having no boundary lines within the State. The charter school’s governing board is subject to open meetings in accordance with Code section 21, and membership requirements for the governing board of the charter school are detailed. Funding for each student attending a charter school will flow through the district of residence, similar to open enrollment, and includes the State cost per pupil, the teacher leadership supplement, and additional weightings as detailed in the Bill. For students attending a charter school who had not been included in the previous year’s enrollment count, the Bill establishes a General Fund standing unlimited appropriation to the Department of Education to be paid to the charter school for the students’ initial year of enrollment in the charter school.

Background

Under Iowa Code section 256F.1, a charter school may be established by creating a new school within an existing public school or converting an existing public school attendance center to charter school status. Storm Lake/Iowa Central/Buena Vista Early College Charter High School and West Central Charter High School are the two public charter schools in the State of Iowa. For additional information on these charter school programs, please read the Department of Education (DE) report Legislative Report: Charter and Innovation Zone Schools in Iowa. According to a 2016-2017 school year report published by the National Alliance for Public Charter Schools, 65.0% of public charter schools nationwide are freestanding and operate independently and apart from any management organization. The remaining 35.0% of public charter schools belong to some type of management organization or education service provider. The two types of education service providers are charter management organizations (CMOs), which hold a nonprofit tax status, or education management organizations (EMOs), which are for-profit tax entities. For the 2016-2017 school year, 23.0% of public charter schools contracted with a CMO and 12.0% of charter schools contracted with an EMO. Table 1 provides the top CMOs and Table 2 provides the top EMOs by enrollment for the 2016-2017 school year.

Fiscal Impact

The LSA anticipates an increase of DE administration costs and the potential need for full-time equivalent (FTE) positions to fulfill the oversight requirements in this Bill, but the number of new charter school applications the State board may receive is unknown.

Federal fiscal and nonfiscal reporting requires inclusion of data for public charter schools. If a charter school is independent from a school district, determinations will be needed regarding eligibility and allocation methods used for federal funds.

There is a potential for double counting of students for State funding. For the initial year of funding for a charter school, State funding is based on an estimate of enrolled students. The potential students included in the charter school estimate may not actually attend the charter school and would in turn be funded at the school where they are actually enrolled. A reconciliation, based on actual enrollment, is to be completed during the subsequent payment to the charter school. It is unclear if the initial year of funding will be provided to the charter school through advance funding by the Department of Management, be provided through payments from the student’s district of residence which through open enrollment protocols are typically paid in February and July, or be provided through some other means.

It is unknown the number of students who would be included in the General Fund standing unlimited appropriation for initial year enrollment in a charter school. Therefore, the appropriation cannot be estimated at this time. The appropriation would include funding for any student not included in the previous year’s enrollment count including students attending nonpublic schools, private instruction students, or students entering kindergarten.