Relating to education, including by modifying provisions related to charter schools, the Iowa public employees’ retirement system, financing programs for charter schools and nonpublic schools administered by the Iowa finance authority, the statewide voluntary preschool program for four-year-old children, education savings accounts, independent accrediting agencies, teacher training and licensure, and making appropriations, and including applicability and retroactive applicability provisions

DIVISION I —— CHARTER SCHOOL FUNDING. Currently, each student enrolled in a charter school under Code chapter 256E shall be counted, for state school foundation purposes, in the student’s district of residence.8(2)(a). This division adds the teacher salary supplement state cost per pupil to the amount required to be paid to the charter school. This provision applies to school budget years beginning on or after July 1, 2026. DIVISION II —— IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM. The division provides that persons employed by charter schools that satisfy all applicable requirements under federal law for participation in the retirement system are employees for purposes of the provisions of the Iowa public employees’ retirement system (IPERS). Additionally, the division provides that charter schools that satisfy all applicable requirements under federal law for participation in the retirement system are employers for purposes of the provisions of IPERS. The bill provides that in the event of charter school closure, the assets of the charter school shall be, after payroll obligations but prior to paying creditors, used to satisfy any liabilities due and owing to IPERS. DIVISION III —— EXTRACURRICULAR INTERSCHOLASTIC ATHLETIC CONTESTS OR COMPETITIONS PROVIDED BY PUBLIC SCHOOLS.13A (sharing interscholastic activities) with another school district, nonpublic school, or charter school that provides for the eligibility of students enrolled in the charter school to participate in the extracurricular interscholastic athletic contest or competition that is being provided by that school.13A with another school district, nonpublic school, or charter school that provides for the eligibility of students enrolled in the charter school to participate in the extracurricular interscholastic athletic contest or competition that is being provided by that school. The division provides that if the board of directors of a school district has established a fee for the cost of a student’s participation in an extracurricular interscholastic athletic contest or competition, a student who is enrolled in a charter school and is participating in a contest or competition at a public school pursuant to the division’s provisions, or the student’s parent or guardian, shall be responsible for the payment of such fee. The division requires a student who is enrolled in a charter school and is participating in a contest or competition at a public school pursuant to the division’s provisions to participate under the same conditions as a student who is enrolled in the school district, including meeting the school district’s student code of conduct requirements.46 (rules for participation in extracurricular activities by certain children). DIVISION IV —— LOCAL EDUCATION AGENCY STATUS.5 (founding group-state board model) is a local education agency for the purpose of receiving federal funds for all attendance centers that are under the jurisdiction of the governing board. DIVISION V —— CHARTER SCHOOL AND NONPUBLIC SCHOOL FACILITIES. The division requires the Iowa finance authority (IFA) to cooperate with charter schools established pursuant to Code chapter 256E and accredited nonpublic schools in the creation, administration, and funding of a charter school and accredited nonpublic school facilities bond program to assist charter schools and accredited nonpublic schools in financing the purchase, acquisition, development, reconstruction, remodeling, or replacement of school buildings. The division allows the IFA to issue its bonds and notes for the purpose of funding the nonrecurring cost of purchasing, acquiring, developing, reconstructing, remodeling, or replacing a school building for a charter school or accredited nonpublic school and to enter into lending agreements or purchase agreements with bondholders or noteholders that contain certain specified provisions. The division establishes the sources from which the principal of, premium, and interest on the bonds or notes are payable. The bonds or notes issued by the IFA in connection with the program are exempt from taxation by this state and the interest on the bonds or notes is exempt from state income tax, both personal and corporate. This provision applies retroactively to January 1, 2026, for tax years beginning on or after that date. The division establishes a charter school facilities revolving loan program fund and an accredited nonpublic school facilities revolving loan program fund within the IFA to assist charter schools and accredited nonpublic schools in acquiring suitable school facilities. The moneys in the funds are appropriated to the IFA for use in the development and operation of a charter school facilities revolving loan program and an accredited nonpublic school facilities revolving loan program to assist charter schools and accredited nonpublic schools in purchasing, acquiring, developing, reconstructing, remodeling, or replacing school buildings. The division also allows the IFA to make or enter into a liquidity or credit enhancement agreement with a charter school or an accredited nonpublic school to assist the charter school or