BILLS PASSED BY THE 2002 LEGISLATURE – Final Summary

Bills listed By Subject Area

(Changes from last publication indicated in underlined red text. Technical corrections made on 4/17/02)

NOTE: The Governor has 30 days from April 12, 2002 to sign legislation sent to him during the final days of the session.

Bill Number

Description

Status

SF 2260

Effective date: July 1, 2002

AEA voluntary Reorganization This is a Department bill that makes necessary revisions to 2001 legislation passed establishing a procedure for AEAs to reorganization. The bill represents the advice of those currently involved in reorganization conversations.

Signed by the Governor

SF 2315

Effective date: July 1, 2002

Allowable Growth for 2002-2003 This bill sets allowable growth for next year at 1%. This amends the allowable growth rate of 4%. For the 2002-2003 school year this means a $45 per pupil increase in spending authority. In addition to passing a 1% allowable growth rate, the legislation appropriates $1,784,090,500 for state foundation aid or a $59 million increase. This $59 million increase in state foundation aid is approximately $11.5 million less than the amount required to "fully fund" the state aid part of the formula. This means that districts must decide whether to levy (use) cash reserve for the additional $11.5 million to fully fund the 1% allowable growth. This continues the $7.5 million reduction to AEAs that occurred during FY02.

Signed by the Governor

SF 2328

Effective date: Jan. 1, 2003

Allowable Growth for 2003-2004 This bill sets allowable growth for the 2003-2004 school year at 2%. Education stakeholders suggested that given Iowa’s revenue picture the Legislature and the Governor should not set the growth rate until the 2003 legislative session. This would increase the district cost per pupil $91 over the FY03 amount. This would continue the $7.5 million reduction to AEAs that occurred during FY02.

To the Governor

Various

Effective date if signed by Gov: Various

Appropriations – Community Colleges Given the variety of sources for community college funding. This section shows the funding level from a cross section of bills:

SF 2326 Omnibus:

· Community college state general aid: This bill level funded the community colleges at $137 million for FY03. The Appropriations – Salary bill described below appropriated $138 million or $1 million above current FY02 level for community college state general aid in FY03.

· College Work-Study Program: Funding continues at $300,000. This represents the second year of decreased funding, which was at $2.7 million in FY01.

· ACE Opportunity Grants: $224,895 (same as FY02)

· Voc Tech Grant: $2,375,657 (same as FY02)

· Provides $100,000 for corrections education. In the several previous fiscal years this appropriation of $2.9 million funded educational opportunities in Iowa’s correctional institutions. Community college faculty provided the vast majority of staffing of this program. This legislature funded this at the Governor’s recommended level.

· School-to-Career: $28,498 ($33,160 in FY02)

SF 2614 RIIF and Tobacco Settlement (Capitals/Infrastructure)

· $3 million for community college technology (level funded).

· $2.5 million for ACE capital projects at community colleges. This funding will be allocated equally among the community colleges, but funds not used by April 1, 2003 may be used by any other community college with pending need.

HF 2623 - Salary

· As mentioned under the OMNIBUS. Amendment H-8659 - Appropriates $138,585,680 for community college general state aid for FY03 This amount is $1 million above the current FY02 level. This appropriation replaces the appropriation of $137 million included in the Omnibus bill.

· Caps the funds going to the community college for training programs under the ACE program at $3 million. The withholding tax credit set aside was scheduled to increase from $3 million to $6 million in FY03. The increase is delayed for one year.

To the Governor

SF 2326

Effective date if signed by Gov: Various

Appropriations – Omnibus bill This 270 page bill combines the appropriations work of seven budget subcommittees including the Education Appropriations Subcommittee. The bill includes the following appropriations for FY03:

1. Department of Education:

· DE General Administration: $46, 000 above the Governor’s recommended level. Still, this represents a $427,000 reduction over this current fiscal year(FY02) and a $900,000 reduction from FY01

This funding is combine with the Appropriations – Salary bill funding which is underfunded in the amount equal to one-half day of furlough each pay period. This amounts to about $150,000 for the agency.

· Community college state general aid: This bill level funded the community colleges at $137 million for FY03. The Appropriations – Salary bill described above appropriated $138 million or $1 million above current FY02 level for community college state general aid in FY03.

The following appropriations are funded at the Governor’s recommended level. The current fiscal year appropriation, including across-the-board cuts, is listed in parenthesis

· JAG: $136,6552 ($142,114 in FY02);

· School-to-Work: $185,212 ($192,813 in FY02)

· Americorps: $136,552 ($142,114 in FY02);

· Community Empowerment: $14,033,448 (14,664,000 in FY02)

· Nonpublic textbooks: $578,000 (same in FY02)

· Voc Ed Admin: $ 500,111 ($555,453)

· Voc Ed Secondary: $3,012,209 ($3,134,903)

· Voc Ed Youth Organizations: $81,630 ($84,920)

· BOEE: $43,695 ($46,988)

· Independent Living: $59,489 ($57,158)

· Vocational Rehabilitation: $4,386,854 ($4,590,890)

· School Food Service: $2,574,034 (Same as FY02)

· NOTE: Child Development Coordinating Council programs REMAIN at the final FY02 level.

2. College Student Aid Commission (All at Gov’s rec)

· College Work-Study Program: Funding continues at $300,000. This represents the second year of decreased funding, which was at $2.7 million in FY01.

· ACE Opportunity Grants: $224,895 (same as FY02)

· Teacher Shortage Forgivable Loan: $472,279 (same as FY02)

· Voc Tech Grant: $2,375,657 (same as FY02)

3. Department of Human Services

· Reduces the juvenile court school liaison funding from $3.5 million to $1.4 million. For the past several fiscal years, the state has provided 75% funding to match local districts’ contribution of 25%. For FY03 in order to maintain the current level of service, school districts will now be required to provide 66% of the funding compared to state share of 33%.

4. Department of Corrections

5. Department of Economic Development

· School-to-Career: $28,498 ($33,160 in FY02)

To the Governor

HF 2614

Effective date if signed by Gov: Various

Appropriations – RIIF and Tobacco Settlement (Capitals/Infrastructure) This bill contains appropriations for infrastructure including technology funding. Education related funding includes:

1. Department of Education

· $3 million for community college technology (level funded);

· $5.7 million for public and accredited non-public school technology. As with the current School Improvement Technology funding is included for student at the Iowa Braille and Sight Saving School, the State School for the Deaf, the Price laboratory School at the University of Northern Iowa, and institutions under the control of the Department of Human Services. such as Woodward and Glenwood. The funding would be distributed on a per pupil basis. The funds must be used for the purposes outlined in the School Improvement Technology program;

· $150,000 for completion of Project EASIER;

· $800,000 to continue the 21^st Century Learning Center technology project at UNI.

· $600,000 for local libraries.

2. Department of Economic Development

To the Governor

HF 2623

As amended by H-8659

Effective date if signed by Gov: Various

Appropriations – Salary and Corrective Changes bill

Employee salaries: This bill appropriates salary money for state employees. The funding level reflects a delay in implementing the contract-covered employees’ COLA for FY03 until October 25, 2002. The bill also underfunds salaries by amount one third, which could result in furloughs next fiscal year.

Community Colleges: Amendment H-8659 was adopted that appropriates $138,585,680 for community college general state aid for FY03. This amount is $1 million above the current FY02 level. This appropriation replaces the appropriation of $137 million included in the Appropriation – Omnibus bill as described above.

Teacher compensation funding: Amendment H-8659 was adopted that appropriates $40 million for the Teacher Quality program. The funding includes $7.75 million to continue mentoring and induction for first and second year teachers, the evaluator-training program, revamping of professional development, National Board Certification and continuation of the trial PRAXIS exam for teachers entering the profession.

The remaining $32.2 million goes for teacher salaries. In House File 2549 above the salary for first year Beginning teachers remains at $24,500. The salary for current Career teachers remains at $26,500. The salary for teachers who are in their second year this year and will move to Career status next year will be $25,500.

The $40 million comes from the following sources:

· $16.1 million from the state’s general fund;

· $8.6 million from the Underground Storage Tank Fund

· $10 million from premium tax credit revenue source

· $5 million from the Rebuild Iowa Infrastructure Fund

Phase III funding: Amendment H-8659 was adopted that reduces Educational Excellence Phase III funding by $14 million leaving $9 million for teacher professional development.

In addition, the bill:

· Requires the Departments of General Services, Personnel, and Information Technology to consult with affected departments in identifying duplicative positions or studying reorganization within state government.

To the Governor

HF 2615

Effective date if signed by Gov: Various

Appropriations - Tobacco Settlement (Programs) This bill appropriates funding from the Tobacco Settlement to various projects. The bill appropriates $1.2 million to Community Empowerment. This replaces the TANF money that has been appropriated in past years. Community Empowerment also receives $14 million in state general fund money in HF 2326 Appropriation – Omnibus, listed above.

To the Governor

SF 2258

Effective date if signed by Gov: July 1, 2002

BOEE Denial of a License This bill would require the Board of Educational Examiners to deny the issuance of a license if the applicant has committed certain felonies and various abuse and sex crimes. This bill corrects inconsistencies in Iowa law that became apparent during a BOEE rulemaking process. The House adopted an amendment that clarifies the felonies.

To the Governor

HF 2482

Effective date: July 1, 2002

BOEE investigations This bill would allow the BOEE, with assistance of the Attorney General, to proceed with prosecution of founded disciplinary investigations. Current law requires the complainant to carry the case through prosecution. The bill exempts contract jumping from this new process.

Signed by the Governor

HF 2454

Effective date: July 1, 2002

Character Education This bill would revise the Iowa’s character education law to allow for greater consistency between Iowa’s law and the new federal Elementary and Secondary Education Act. States are required to apply for a federal character education grant. Activities are underway with the Department and a character education nonprofit.

Signed by the Governor

SF 348

Effective date if signed by Gov: July 1, 2002

Charter Schools Legislators were interested in creating charter schools within public school districts for the purpose of drawing down federal charter school funds for the buildings that might be designated as charters by the local board. The bill authorizes 10 pilots who could be eligible for federal funding if Iowa submits an application and the US Department of Education approves the application. Based upon typically allocations to other states, Iowa could receive one-year $50,000 planning grants per charter school for the 2003-2004 school year and two years of a $150,000 in implementation grants per charter school in following school years.

The bill only permits local school districts to be the chartering agent. In addition, the bill contains the following provisions:

· The State Board would approve the charters (4 year term)

· No charter school districts

· Charter buildings would operate as public schools for all practical purposes

· Teachers would be employees of the district

· The district would be the fiscal agent for the charter building but the building would have flexibility in how funding is spent

· HF 2272 requirements would apply to the charter building

· The State Board and the local board could revoke the charter

· This legislation would sunset in 8 years

To the Governor

SF 2205

Effective date if signed by Gov: July 1, 2002

Child Development Homes This bill makes several changes to the current child care system. Under current law a childcare home must register if the home serves more than six children. As introduced, this bill would have lowered that maximum to require registry for homes serving more than three children. An amendment offered during Senate debate moved the maximum for registry back to current requirement of more than six children. “Child Care Homes” undergo a name change to “Child Development Homes”. The bill also directs the Department of Human Services to administer standards for these centers. Finally, the bill prohibits smoking in the child development homes during business hours.

To the Governor

HF 2394

Effective date: July 1, 2002

Community College Licensure This bill would eliminate licensure of community college faculty. Instead each college appoints a committee comprised of administrators and faculty to develop a plan to insure quality faculty and the professional development of faculty.

The bill would have allowed each college to develop quality standards that would have been consistent with North Central Regional Accreditation and the higher education model of holding the individual college responsible for hiring quality faculty. Instead committee action included an amendment that sets specific quality standards for full time faculty:

· Arts and sciences faculty would be required to possess a master’s degree and have 12 hours of study in the field of instruction;

· Vocational educators would be required to have 6000 hours in their field of teaching.

Signed by the Governor

HF 2571

Effective date: July 1, 2002

Cultural Trusts This bill creates a cultural trust fund within the Department of Cultural Affairs. Interest income generated off of any funds placed into the trust fund would be allocated for educational purposes by a 9-member board, which includes legislators. The bill did not appropriate state funds for this trust.

Signed by the Governor

SF 2259

Effective date if signed by Gov: July 1, 2002

Department Bill #1 - This is one of two department statutory revision bills. This bill:

· Updates circumstances under which a student may participate in athletics without meeting the residency requirements to include situations where the parents have not been married but a court-ordered custody decree or order of custody is present;

· Requires the receiving district to pay the postsecondary enrollment option (PSEO) fee of $250. Current law requires the sending district (the resident district) to pay the fee. Students taking PSEO are doing so based upon the curriculum of the receiving district not the sending district.

· Codifies current practice under which nonpublic school students may participate on public school athletic teams if sharing agreements exist between the public and nonpublic school.

· Changes the date by which the department must notify districts of the capacity per pupil for Vision Iowa –school infrastructure purposes. The current July 1 date is moved to September 1 to allow for the capacity to be based upon the most accurate tax information;

· Changes Ed Excellence to allow Phase I payments to be based upon the previous year’s Phase I teacher count. Also, allow districts to retain any portion of their Phase III balance at the end of the year. Current law allows districts to retain up to 50% of the balance.

To the Governor

HF 2515

Effective date: See bill description below

Department Bill #2 Statutory Changes Due to Budget Reductions

This bill would eliminate, reduce or reassign certain duties of the Department of Education. The changes are essential due to the nearly 12 percent reduction in the DE’s general administration budget to date in this fiscal year. Declining state revenues will most assuredly reduce administration expenses further. The department simply can’t continue offering services in certain areas. Amendments were adopted to the bill upon final passage. See below.

A section-by-section analysis of this bill is included at the end of this bill chart.

To the Governor

HF 2404

Effective date: July 1, 2002

English Language Learner Funding This bill would increase the weighting for limited English proficiency from .19 to .22 weighting. This bill would cost approximately 1 million starting in FY04. Passage of this bill is tied to the English as the official language bill, which is awaiting action by the Governor

Signed by the Governor

HF 2532

Effective date if signed by Gov:

July 1, 2002

IPERS This bill is the IPERS clean-up bill offered traditionally during in even numbered years. Of primary interest is a provision that raises the cap on salaries IPERS beneficiaries can receive before a reduction in IPERS income results. Under current law the cap is set at $14,000. The House/ Senate conference committee agreed to set the new cap at $30,000.

To the Governor

HF 2467

Effective date: July 1, 2002

Loan Defaulters Licenses This bill would allow various licensing boards to suspend, revoke or deny a license if the applicant is in default on a student loan.

Signed by the Governor

HF 2475

Effective date: July 1, 2002

Loan Security. Iowa Higher Education Loan Authority, a quasi-governmental body, requested this bill. The bill allows non-profit organizations that provide or acquire educational loans to establish and perfect a security interest and priority over other security interests in the loan.

Signed by the Governor

HF 2150

Effective date: July 1, 2002

National Guard Services This bill would permit the Iowa National Guard, U.S. reserve forces and reserve officer training corps to conduct honor guard services on school property without violating the gun-free school law.

Signed by the Governor

HF 2323

Effective date: July 1, 2002

Nurse Loan Program This bill would create within the College Student Aid Commission three new nurse recruitment programs including:

· Forgivable loan program

· Tuition scholarship program

· Registered nurse repayment loan program

The bill creates a separate fund within the General Fund entitled the Registered Nurse Revolving Fund. Federal funds are expected to begin this program.