Bills › 91st General Assembly
Relating to charter schools and innovation zone schools, including by modifying provisions related to charter school funding and operations, services provided to charter schools by area education agencies, charter school contracts, and charter school student participation in extracurricular activities provided by public schools, striking provisions allowing for the establishment of innovation zone schools, and including applicability provisions
Topics:K–12 education
Where it is now
- Done: IntroducedFebruary 16, 2026
- Done: SubcommitteeFebruary 16, 2026
- Done: Senate committeeFebruary 18, 2026
- Skipped: Passes the SenateContinued as SF 2406
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 2406 → Its progress continues under the new number. Go to SF 2406 What’s a funnel?
What’s in it
AI summary This bill eliminates innovation zone schools and changes how charter schools are funded and operated. It allows charter school students to participate in certain public school sports and extracurricular activities through specific agreements. Additionally, it requires charter schools to offer driver education and gives teachers at these schools more ways to earn permanent licenses.1
Read the official explanation
This bill relates to charter schools and innovation zone schools, including by modifying provisions related to charter school funding and operations, services provided to charter schools by area education agencies, charter school contracts, and charter school student participation in extracurricular activities provided by public schools, and striking provisions allowing for the establishment of innovation zone schools. DIVISION I —— CONSOLIDATION OF CHARTER SCHOOL CODE CHAPTERS AND ELIMINATION OF INNOVATION ZONE SCHOOLS. Current Code chapter 256F authorizes school districts to join together to establish an innovation zone school, a public school, administered by a principal, that is designed to encourage diverse approaches to learning and education and that operates pursuant to the terms of a contract entered into between the boards of directors of the school districts establishing the innovation zone school and the state board of education. The division modifies Code chapter 256F to remove all references to innovation zone schools, which eliminates the authorization for school districts to join together to establish an innovation zone school. The division makes conforming changes. Current law provides that the term of a charter school contract entered into between the board of directors of a school district that has established a charter school under Code chapter 256F and the state board of education shall be four years. The division provides that the term of such a contract shall be five years.9 (performance framework). These provisions apply to charter school contracts under Code chapter 256F that are renewed on or after the effective date of the division. The division transfers the Code sections within Code chapter 256F (charter schools and innovation zone schools) to a new subchapter II within Code chapter 256E (charter schools —— school board and founding group models). The division also organizes the current Code sections within Code chapter 256E into a new subchapter I. DIVISION II —— FUNDING AND AREA EDUCATION AGENCY SERVICES. Currently, each student enrolled in a charter school under Code chapter 256E, subchapter I, 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 Code chapter 256E, subchapter I, charter school. This provision applies to school budget years beginning on or after July 1, 2026. The division requires area education agencies to provide educational services and media services to students enrolled in Code chapter 256E, subchapter I, charter schools. _____ agency: the amount calculated for media services for the school district that is attributable to the number of students enrolled in Code chapter 256E, subchapter I, charter schools within the school district who are provided with media services by an area education agency, and the amount calculated for educational services for the school district that is attributable to the number of students enrolled in Code chapter 256E, subchapter I, charter schools within the school district who are provided with educational services by an area education agency. This provision applies to school budget years beginning on or after July 1, 2026. 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 Code chapter 256E, subchapter I, 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 Code chapter 256E, subchapter I, 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 —— DRIVER EDUCATION. Current law requires every public school district in Iowa to offer or make available to all students residing in the school district, including Iowa students attending a nonpublic school or receiving competent private instruction or independent private instruction, in the district, an approved course in driver education. The division requires Code chapter 256E, subchapter I, charter schools to offer or make available such courses to students attending the charter school. In addition, the division requires every public school district in Iowa to offer or make available to all Iowa students residing in the school district who attend a Code chapter 256E, subchapter I, charter school an approved course in driver education pursuant to policies established by the school district. The charter school is responsible for the payment of all of the school district’s costs associated with providing the approved course in driver education to such students. DIVISION V —— CHARTER SCHOOL OPERATIONS.163 establishes requirements for teacher licensure beyond a temporary initial license or an initial license.163, the requirements for teacher licensure beyond a temporary initial license or an initial license include successful completion of a beginning teacher mentoring and induction program; two years of successful teaching experience in a school district with an approved career paths, leadership roles, and compensation framework; or evidence of not less than three years of successful teaching experience at certain specified schools or programs.163 to add charter schools, established pursuant to Code chapter 256E, subchapter I, to this list of schools or programs, allowing a teacher to attain licensure beyond a temporary initial license or an initial license if the teacher completes not less than three years of successful teaching experience at such a charter school. _____ schools established under Code chapter 256E, subchapter I, is to accelerate student learning to prevent learning loss during the COVID-19 pandemic and other significant disruptions to student learning. The division modifies this provision to provide that one of the purposes of such charter schools is to accelerate student learning to prevent learning loss during significant disruptions to student learning. The division provides that an initial charter school contract shall be granted for a term of five school budget years, commencing the school budget year in which the charter school opens. In addition, the division provides that an approved charter school opens on the first day of the school year that is two school years immediately subsequent to the school year in which the charter school contract is executed; provided, however, that the approved charter school may open on the first day of the school year that is immediately subsequent to the school year in which the charter school contract is executed if the approved charter school demonstrates adequate preparation to the state board. If the charter school requires an opening delay of more than two school years immediately subsequent to the school year in which the charter school contract is executed, the charter school may request an extension from the state board. This provision applies to charter school contracts that are executed on or after the effective date of the division. The division allows students from charter schools established pursuant to Code chapter 256E, subchapters I and II, to access the district-to-community college sharing or concurrent enrollment program through the school district in which the charter school is located. The division also allows students from online charter schools to access the program through the students’ school district of residence.
Senate subcommittee
Named February 16, 2026. On February 18, 2026 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
17 written public comments to its subcommittee: March 4, 2026 (1), February 18, 2026 (11), February 11, 2026 (5) · on the Legislature’s site
Fiscal note
AI summary This bill makes several changes to charter school regulations, including rules for teacher salaries, extracurricular activities, and driver education. It is estimated that the teacher salary supplement payments to charter schools will increase by $1.3 million in fiscal year 2027. School districts will also be reimbursed by charter schools for costs related to providing driver education courses.3
Read the fiscal note
Description
Senate File 2406 makes numerous changes regarding charter schools as detailed by division below.
Division I consolidates current charter school Iowa Code chapters and eliminates Iowa Code language related to innovation zone schools.
Division II requires the teacher salary supplement (TSS) State cost per pupil to be paid to the charter school where the pupil is enrolled; requires area education agencies (AEAs) to provide educational services and media services to students enrolled in charter schools; authorizes the Department of Management (DOM) to deduct media services and educational services amounts from the school district of residence for the number of students enrolled in charter schools and in turn pay those amounts to the AEA providing those services to the student. These changes apply to FY 2027.
Division III requires school districts to allow certain charter school students to participate in extracurricular athletic contests when the following criteria is met:
- The student must be a resident of the district or a contiguous district.
- The athletic contest may not be offered by the charter school in either of the two most recent years.
- The student is ineligible if the charter school has entered into a sharing interscholastic activities agreement with another school.
- If the school district has established a fee for the cost of a student’s participation, that same fee would apply to the charter school student.
- The student must meet the school district’s code of conduct.
Division IV requires a charter school to offer or make available to all students an approved course in driver education. The Division also requires the resident district of a charter school student to offer or make available an approved course in driver education. The charter school is responsible for paying all the school district’s costs associated with providing the approved driver education course.
Division V adds charter schools to the list of schools or programs for which a teacher can attain licensure beyond a temporary initial license if the teacher completes at least three years of successful teaching experience at a charter school. The Bill also changes the language related to the purpose of a charter school. Division V also makes the following changes:
- Requires an initial charter school contract to be granted for five school budget years starting with the school budget year in which the charter school opens.
- Provides for school opening periods for an approved charter school.
- Allows for charter school students to participate in district-to-community college sharing as established in Iowa Code section 261E.8 (District-to-community college sharing or concurrent enrollment program).
The section related to charter school contracts applies to charter school contracts that are executed on or after the effective date of Division V which is July 1, 2026 (FY 2027).
Background
As reported in the December 2025 Department of Education (DE) Iowa Charter School Legislative Report, 16 charter schools are currently authorized to operate in Iowa under Iowa Code chapters 256E and 256F. Out of these 16 charters, 10 are operational in the 2025-2026 school year.
Based on the fall 2025 charter school enrollment, there are 1,382 students attending charter schools, and those students attending are from 107 resident districts. School districts with the highest number of resident students attending a charter school rather than their resident district are detailed below:
- Des Moines — 564 students
- Cedar Rapids — 394 students
- Davenport — 77 students
- Saydel — 20 students
- Ankeny — 18 students
The Iowa Department of Transportation (DOT) provides oversight for driver education, including the different options available to students.
The Board of Educational Examiners (BOEE) provides oversight and issues licenses, authorizations, and endorsements for teachers in the State.
Assumptions
- There is no additional administrative burden to the DOM or BOEE for changes made in the Bill.
- The AEAs are on a pay-for-service model, and there will be no fiscal impact on operations.
- School districts will have additional costs for charter school student participation, which will be covered by student activity fees.
- School districts will have additional costs for charter school student participation in driver education courses, which will be covered by the charter school.
- The FY 2026 cost per pupil for the teacher salary supplement is $684.47. This supplement is for a full-time student. If a student were to attend less than full-time, this amount would be prorated based on the seat time of the student at the charter school.
- Provided by the Iowa Coalition for Charter Schools, the projected enrollment for charter schools using the Founding Group Model is 1,382 pupils for FY 2026 and 1,945 pupils for FY 2027. Any pupil attending a charter school using the School District Model will continue to be counted as a pupil of the public school district, and school aid funding will not be affected.
- For FY 2027, the TSS will be paid to the charter schools for FY 2027 enrollment and to the public school districts for FY 2026 enrollment due to the current mechanics of payment of school aid.
Fiscal Impact
Division III is expected to increase the TSS payment to charter schools for FY 2027 by $1.3 million. This payment could vary based on the actual enrollment of charter school students and whether students attend the charter school on a full-time basis. School districts will be reimbursed for additional costs related to offering driver education courses to charter school students. The other four Divisions are expected to have no fiscal impact.
Sources
- Department of Education
- Department of Management
- Iowa Coalition for Public Charter Schools
- Charter Schools · March 6, 2026
Iowa Code it changes
Amends§232E.1§256.163§256.7§256.9§256E.1§256E.10§256E.11§256E.12§256E.2§256E.3§256E.4§256E.5§256E.6§256E.7§256E.8§256E.9§256F.1§256F.10§256F.12§256F.2§256F.3§256F.4§256F.5§256F.6§256F.7§256F.8§256F.9§257.35§257.6§261E.8§273.2§280.13D§280.36§282.18§282.9§297.24§29E.1§321.178
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