H-8220

   Amend House File 2612, as amended, passed, and reprinted by the House, as follows:
   1.  By striking everything after the enacting clause and inserting: 
<DIVISION I
DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION

   Section 1.  Section 256.9, subsection 54, Code 2024, is amended by striking the subsection.
   Sec. 2.  Section 256B.3, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  15A.  Beginning July 1, 2025, oversee the operation of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education.
   NEW SUBSECTION.  15B.  Beginning July 1, 2025, provide guidance and standards to area education agencies for federal and state education initiatives which the area education agencies must implement statewide.
   Sec. 3.  DEPARTMENT OF EDUCATION AND AREA EDUCATION AGENCIES —— STAFFING AND TRANSITION PLAN.
   1.  The department of education shall coordinate with each area education agency, and with the division of special education of the department, to develop a plan to transfer employees of the area education agency whose primary job duties involve providing oversight and compliance services to the area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education from employment under the area education agency to employment under the division of special education of the department, as needed. The plan shall include a description of how the area education agency will accommodate any space needed in the area education agency’s facilities for employees of the division of special education.
   2.  The department of education will compile all of the plans created pursuant to subsection 1 and submit the compilation to the general assembly on or before January 1, 2025.
DIVISION II
AREA EDUCATION AGENCIES —— GENERAL PROVISIONS

   Sec. 4.  Section 273.1, Code 2024, is amended to read as follows:
   273.1  Intent.
   It is the intent of the general assembly to provide an effective, efficient, and economical means of identifying and serving children from under five years of age through grade twelve who require special education and any other children requiring special education as defined in section 256B.2; to provide for media services and other programs and services for pupils in grades kindergarten through twelve and children requiring special education as defined in section 256B.2; to provide a method of financing the programs and services; and to avoid a duplication of programs and services provided by any other school corporation in the state; and to provide services to school districts under a contract with those school districts; to improve student achievement; and to close student achievement gaps.
   Sec. 5.  Section 273.2, subsections 1, 3, and 4, Code 2024, are amended to read as follows:
   1.  There are established throughout the state fifteen nine area education agencies, each of which is governed by an area education agency board of directors and, beginning July 1, 2025, by the division of special education of the department of education to the extent described in section 256B.3, subsection 15A. The boundaries of an area education agency shall not divide a school district. The director of the department of education shall change boundaries of area education agencies to take into account mergers of local school districts and changes in boundaries of local school districts, when necessary to maintain the policy of this chapter that a local school district shall not be a part of more than one area education agency.
   3.  a.  (1)  The Subject to subparagraph (2), the area education agency board shall furnish educational services and programs as provided in  section 273.1, this section, sections 273.3 through 273.8, and chapter 256B to the pupils enrolled in public or nonpublic schools located within its boundaries which are on the list of accredited schools pursuant to section 256.11. The area education agency board shall furnish educational and media services and programs as provided in section 273.1, this section, sections 273.3 through 273.8, and chapter 256B to the pupils enrolled in nonpublic schools located within its boundaries which are on the list of accredited nonpublic schools pursuant to section 256.11 regardless of whether the school district in which the accredited nonpublic school is located receives such services and programs from the area education agency.
   (2)  A public school located within an area education agency’s boundaries that wishes to receive educational services and programs from the area education agency must request to receive such educational services and programs by February 1 of the preceding school year, including by providing for a method of payment for such services and programs and entering into an agreement with the area education agency. If a public school located within an area education agency’s boundaries requests to receive such services after February 1 of the preceding school year, the area education agency board may furnish the educational services and programs.
   (3)  The programs and services provided under this subsection shall be at least commensurate with programs and services existing on July 1, 1974.
   (4)  The programs and services provided to pupils enrolled in nonpublic schools shall be comparable to programs and services provided to pupils enrolled in public schools within constitutional guidelines.
   b.  The area education agencies may furnish evidence-based professional development services to public or nonpublic schools located within its boundaries which are on the list of accredited schools pursuant to section 256.11, subject to the approval of the director of the department of education.
   4.  The area education agency board shall provide do all of the following:
   a.  Provide for special education services and media services for the local school districts in the area and shall encourage that request to receive such services by February 1 of the preceding school year, including by providing for a method of payment for such services and entering into agreements with the area education agency. An area education agency may provide special education services for local school districts in the area that request to receive such services after February 1 of the preceding school year.
   b.  Encourage and assist school districts in the area to establish programs for gifted and talented children. The board shall assist
   c.  Assist in facilitating interlibrary loans of materials between school districts and other libraries.
   Sec. 6.  Section 273.2, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  4A.  The area education agency board shall provide for media services for the local school districts in the area that request to receive such services by February 1 of the preceding school year, including by providing for a method of payment for such services and entering into agreements with the area education agency. An area education agency may provide media services for local school districts in the area that request to receive such services after February 1 of the preceding school year.
   NEW SUBSECTION.  12.  The area education agency board shall charge reasonable costs that are consistent with current market rates for the educational services, special education services, professional development services, and media services established by the area education agency board.
   NEW SUBSECTION.  13.  The area education agency board shall provide an annual report by October 1 of each year to the general assembly and the department of education that includes a description of the progress the area education agency has made to improve the outcomes achieved by students receiving special education services and a description of how the area education agency is focusing the moneys it receives on providing services in the classroom.
   Sec. 7.  Section 273.3, subsection 11, Code 2024, is amended to read as follows:
   11.  Employ personnel to carry out the functions of the area education agency which shall include the employment of an administrator who shall possess a license issued under chapter 256, subchapter VII, part 3. The administrator shall be employed pursuant to section 279.20 and sections 279.23, 279.24, and 279.25. The salary for an area education agency administrator shall be established by the board based upon the previous experience and education of the administrator; provided, however, that the salary for an area education agency administrator shall not exceed one hundred twenty-five percent of the average salary of all superintendents of the school districts that are located within the boundaries of the area education agency. Section 279.13 applies to the area education agency board and to all teachers employed by the area education agency. Sections 279.23, 279.24, and 279.25 apply to the area education board and to all administrators employed by the area education agency. Section 279.69 applies to the area education agency board and employees of the board, including part-time, substitute, or contract employees, who provide services to a school or school district.
   Sec. 8.  Section 273.3, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  26.  Annually, on or before January 1 of each year, prepare and submit to each school district within the boundaries of the area education agency a report that includes all of the following:
   a.  A monetary accounting of payments the area education agency received from the school district, including payments under section 257.35, during the previous fiscal year.
   b.  A description of the services the area education agency provided to the school district during the previous fiscal year, including a calculation of the cost per pupil for each category of service the area education agency provided to the school district.
   Sec. 9.  Section 273.4, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Under direction of the board of directors of the area education agency, and, beginning July 1, 2025, the division of special education of the department of education, to the extent described in section 256B.3, subsection 15A, the administrator of the area education agency shall, in addition to other duties:
   Sec. 10.  Section 273.5, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   There shall be established a division of special education of the area education agency which shall provide for special education programs and services to the local school districts. The division of special education shall be headed by a director of special education who meets certification standards of the department of education.  The director of special education shall be an employee of the division of special education of the department of education. The director of special education shall have the responsibility for implementation of state regulations and guidelines relating to special education programs and services. The director of special education shall have the following powers and duties:
   Sec. 11.  Section 273.8, subsection 1, Code 2024, is amended to read as follows:
   1.  Board of directors.
   a.  The board of directors of an area education agency shall consist of not less than five nor more than nine members, each a resident of and elected in the manner provided in this section from a director district that is approximately equal in population to the other director districts in the area education agency. Each director shall serve a four-year term which commences at the organization meeting.
   b.  Five members of the board of directors of an area education agency must be residents of and elected in the manner provided in this section from a director district that is approximately equal in population to the other director districts in the area education agency.
   c.  Four members of the board of directors of an area education agency must be appointed by the majority vote of the superintendents of school districts located within the boundaries of the area education agency. A member appointed pursuant to this paragraph must be a superintendent of a school district located within the boundaries of the area education agency; provided, however, that a superintendent appointed pursuant to this paragraph may designate any individual to serve for all, or the remainder of, the superintendent’s term.
   Sec. 12.  Section 273.8, subsection 2, paragraphs c and d, Code 2024, are amended to read as follows:
   c.  The board of each separate school district that is located entirely or partially inside an area education agency director district shall cast a vote for director of the area education agency board described in subsection 1, paragraph “b”, based upon the ratio that the population of the school district, or portion of the school district, in the director district bears to the total population in the director district. The population of each school district or portion shall be determined by the department of education. The member of the area education agency board described in subsection 1, paragraph “b”, to be elected may be a member of a local school district board of directors and shall be an elector and a resident of the director district, but shall not be a school district employee.
   d.  (1)  Vacancies A vacancy, as defined in section 277.29, in the a membership position of the area education agency board described in subsection 1, paragraph “b”, shall be filled for the unexpired portion of the term at a director district convention called and conducted in the manner provided in subsection 3.
   (2)  A vacancy, as defined in section 277.29, in a membership position of the area education agency board described in subsection 1, paragraph “c”, shall be filled for the unexpired portion of the term by an individual who is appointed by the majority vote of the superintendents of school districts located within the boundaries of the area education agency.
   Sec. 13.  Section 273.8, subsection 3, Code 2024, is amended to read as follows:
   3.  Director district convention.  If no candidate files with the area education agency secretary by the deadline specified in subsection 2, or a vacancy occurs, or if otherwise required as provided in section 273.23, subsection 3, a director district convention, attended by members of the boards of directors of the local school districts located within the director district, shall be called to elect a board member described in subsection 1, paragraph “b”, for that director district. The convention location shall be determined by the area education agency administrator. Notice of the time, date, and place of a director district convention shall be published by the area education agency administrator in at least one newspaper of general circulation in the director district at least thirty days prior to the day of the convention. The cost of publication shall be paid by the area education agency. A candidate for election to the area education agency board shall file a statement of candidacy with the area education agency secretary at least ten days prior to the date of the director district convention on forms prescribed by the department of education, or nominations may be made at the convention by a delegate from a board of directors of a school district located within the director district. A statement of candidacy shall include the candidate’s name, address, and school district. Delegates to director district conventions shall not be bound by a school board or any school board member to pledge their votes to any candidate prior to the date of the convention.
   Sec. 14.  Section 273.10, Code 2024, is amended to read as follows:
   273.10  Accreditation of area education programs.
   1.  The division of special education of the department of education shall develop, in consultation with the area education agencies, and establish an accreditation process for area education agencies by July 1, 1997. At a minimum, the accreditation process shall consist of the following:
   a.  The timely submission by an area education agency of information required by the division of special education of the department on forms provided by the department division of special education.
   b.  The use of an accreditation team appointed by the director division of special education of the department of education to conduct an evaluation, including an on-site visit of each area education agency. The team shall include, but is not limited to, department staff members, representatives from the school districts served by the area education agency being evaluated, area education agency staff members from area education agencies other than the area education agency that conducts the programs being evaluated for accreditation, and other team members with expertise as deemed appropriate by the director division of special education.
   2.  Prior to a visit to an area education agency, the accreditation team shall have access to that area education agency’s program audit report filed with the department division of special education of the department of education. After a visit to an area education agency, the accreditation team shall determine whether the accreditation standards for a program, including but not limited to standards established pursuant to section 256.9, subsection 54 section 256B.3, subsection 15B, have been met and shall make a report to the director and the state board division of special education, together with a recommendation as to whether the programs of the area education agency should receive initial accreditation or remain accredited. The accreditation team shall report strengths and weaknesses, if any, for each accreditation standard and shall advise the area education agency of available resources and technical assistance to further enhance the strengths and improve areas of weakness. An area education agency may respond to the accreditation team’s report.
   3.  The state board of education division of special education of the department of education shall determine whether a program of an area education agency shall receive initial accreditation or shall remain accredited.
   a.  Approval of area education agency programs by the state board division of special education shall be based upon the recommendation of the director of the department of education after a study of the factual and evaluative evidence on record about each area education agency program in terms of the accreditation standards adopted by the state board.
   b.  Approval, if granted, shall be for a term of five years. However, the state board division of special education may grant conditional approval for a term of less than five years if conditions warrant.
   4.  If the state board of education division of special education of the department of education determines that an area education agency’s program does not meet accreditation standards, the director of the department of education division of special education, in cooperation with the board of directors of the area education agency, shall establish a remediation plan prescribing the procedures that must be taken to correct deficiencies in meeting the program standards, and shall establish a deadline date for correction of the deficiencies. The remediation plan is subject to the approval of the state board.
   5.  The division of special education of the department of education may suspend the accreditation of the area education agency program shall remain accredited during the implementation of the remediation plan. The accreditation team shall visit the area education agency and shall determine whether the deficiencies in the standards for the program have been corrected and shall make a report and recommendation to the director and the state board of education division of special education. The state board division of special education shall review the report and recommendation and shall determine whether the deficiencies in the program have been corrected.  If the division of special education determines that the deficiencies in the program have been corrected, the division of special education shall reinstate the accreditation of the area education agency program if such accreditation was suspended pursuant to this subsection.
   6.  a.  If the deficiencies in an area education program have not been corrected, the agency board division of special education of the department of education shall take one of the following actions within sixty days from removal of accreditation:
   (1)  Merge the deficient program with a program from another accredited area education agency.
   (2)  Contract with another area education agency or other public educational institution for purposes of program delivery.
   b.  The rules developed by the state board of education for the accreditation process shall include provisions for removal of accreditation, including provisions for proper notice to the administrator of the area education agency, each member of the board of directors of the area education agency, the department of education, and the superintendents and administrators of the schools of the districts served by the area education agency.
   Sec. 15.  Section 273.11, Code 2024, is amended to read as follows:
   273.11  Standards for accrediting area education programs.
   1.  The state board of education, in consultation with the division of special education of the department of education, shall develop standards and rules for the accreditation of area education agencies. Standards shall be general in nature, but at a minimum shall identify requirements addressing the services provided by each division, as well as identifying indicators of quality that will permit area education agencies, school districts, the division of special education of the department of education, and the general public to judge accurately the effectiveness of area education agency services.
   2.  Standards developed shall include, but are not limited to, the following:
   a.  Support for school-community planning, including a means of assessing needs, developing collaborative relationships among community agencies, establishing shared direction, and implementing program plans and reporting progress toward goals for all students, including students with disabilities.
   b.  Professional Evidence-based professional development programs that respond to current needs.
   c.  Support for curriculum development, instruction, and assessment for services that address the areas of reading, language arts, math, and science, using research-based methodologies, for all students, including students with disabilities.
   d.  Special education compliance and support.
   e.  Management services, including financial reporting and purchasing as requested and funded by local districts.
   f.  Support for instructional media services that supplement and support local district media centers and services.
   g.  Support for school technology planning and staff development for implementing instructional technologies.
   h.  A program and services evaluation and reporting system that includes information related to special education.
   i.  Support for school district libraries in accordance with section 273.2, subsection 4.
   j.  Support for early childhood service coordination for families and children, age birth through three years, to meet health, safety, and learning needs, including service coordination.
   k.  Timely submission of required reports and documents to the state board of education, the department of education, and the division of special education of the department of education.
   l.  Support for schools and school districts in analyzing student achievement data related to the learning environment, comparing data to the external knowledge base, and using that information to guide schools and school districts in setting goals and implementing actions to improve student learning for all students, including students with disabilities.
   m.  Support for addressing the diverse learning needs of all children and youths, including children and youths who are eligible for special education through services that include direct services to students with disabilities.
   n.  Support for schools and school districts to ensure compliance with rules adopted by the state board of education related to special education.
   o.  Support necessary to implement effective instruction for all students, including students with disabilities, through school technology services.
   p.  Support for students using educational programs and services in a manner that is consistent with the educational standards established pursuant to section 256.11.
   q.  Support for staff development and adult learners utilizing evidence-based professional development in a manner that meets the professional needs of staff and adult learners consistent with standards adopted by the state board of education.
   r.  Compliance with all relevant federal and state laws in the provision of services and supports to students with disabilities.
   Sec. 16.  TRANSITION PROVISIONS.
   1.  An area education agency that was accredited pursuant to section 273.10 on or before the effective date of the section of this division of this Act amending section 273.10 shall remain accredited unless and until the division of special education of the department of education takes action to remove accreditation from the area education agency pursuant to section 273.10, as amended in this division of this Act.
   2.  a.  As of July 1, 2024, each area education agency shall terminate the employment of all directors of special education employed by the area education agency pursuant to section 273.5, as amended in this division of this Act. 
   b.  Within a reasonable time after July 1, 2024, the division of special education of the department of education shall employ at least one individual to serve as a director of special education in each area education agency. During the hiring process associated with employing an individual to serve as director of special education in an area education agency, the division of special education shall give preference to individuals whose employment was terminated pursuant to paragraph “a”.
   Sec. 17.  EFFECTIVE DATE.  The following take effect July 1, 2025:
   1.  The section of this division of this Act amending section 273.10.
   2.  The section of this division of this Act amending section 273.11.
   Sec. 18.  APPLICABILITY.  The following applies to employment agreements entered into or renewed between an area education agency and an area education agency administrator on or after July 1, 2024:
   The section of this division of this Act amending section 273.3, subsection 11.
   Sec. 19.  APPLICABILITY.  The following applies to the election of directors and vacancies occurring under section 273.8, as amended in this division of this Act, on or after July 1, 2024:
   The sections of this division of this Act amending section 273.8.
   Sec. 20.  APPLICABILITY.  The following apply to school years beginning on or after July 1, 2025:
   1.  The portion of the section of this division of this Act amending section 273.2, subsection 3.
   2.  The portion of the section of this division of this Act amending section 273.2, subsection 4.
   3.  The portion of the section of this division of this Act enacting section 273.2, subsection 4A.
DIVISION III
AREA EDUCATION AGENCIES —— FUNDING

   Sec. 21.  Section 257.1, subsection 3, Code 2024, is amended to read as follows:
   3.  Computations rounded.  In making computations and payments under this chapter, except in the case of computations relating to funding of special education support services, media services, and educational services provided through the area education agencies under section 257.37, and the teacher salary supplement, the professional development supplement, the early intervention supplement, and the teacher leadership supplement, the department of management shall round amounts to the nearest whole dollar.
   Sec. 22.  Section 257.10, subsection 7, Code 2024, is amended to read as follows:
   7.  Special education support services district cost.  Special education support services district cost for a school district for a budget year is equal to the special education support services district cost per pupil for the budget year multiplied by the special education support services weighted enrollment for the district for the budget year. If the special education support services district cost for a school district for a budget year is less than the special education support services district cost for that district for the base year, the department of management shall adjust the special education support services district cost for that district for the budget year to equal the special education support services district cost for the base year.  Funds calculated under this subsection and received by a school district or an area education agency, as applicable, shall be used for special education support services.
   Sec. 23.  Section 257.10, subsection 8, paragraph a, Code 2024, is amended to read as follows:
   a.  Combined district cost is the sum of the regular program district cost per pupil multiplied by the weighted enrollment, the special education support services district cost, the total teacher salary supplement district cost, the total professional development supplement district cost, the total early intervention supplement district cost, and the total teacher leadership supplement district cost, plus the sum of the additional district cost allocated to the district to fund media services and educational services provided through the area education agency under section 257.37, the area education agency total teacher salary supplement district cost and the area education agency total professional development supplement district cost.
   Sec. 24.  Section 257.35, subsection 1, Code 2024, is amended to read as follows:
   1.  a.  (1)  The For fiscal years beginning before July 1, 2024, the department of management shall deduct the amounts calculated for special education support services, media services, area education agency teacher salary supplement district cost, area education agency professional development supplement district cost, and educational services for each school district from the state aid due to the district pursuant to this chapter and shall pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year.
   (2)  For the fiscal year beginning July 1, 2024, the department of management shall deduct the following amounts from the state aid due to each school district pursuant to this chapter and shall pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year:
   (a)  The amount calculated for special education support services for the school district.
   (b)  Forty percent of the amount calculated for media services for the school district.
   (c)  The area education agency teacher salary supplement district cost.
   (d)  The area education agency professional development supplement district cost.
   (e)  Forty percent of the amount calculated in section 257.37 for educational services for the school district.
   (3)  For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, the department of management shall deduct the following from the state aid due to each school district pursuant to this chapter and shall pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year:
   (a)  The greater of the following:
   (i)  Ten percent of the amount calculated for special education support services for the school district.
   (ii)  The amount calculated for special education support services for the school district that is attributable to that portion of the special education support services weighted enrollment that is nonpublic school pupils served with special education support services by the area education agency.
   (b)  The area education agency teacher salary supplement district cost.
   (c)  The area education agency professional development supplement district cost.
   (d)  The amount calculated in section 257.37 for media services for the school district that is attributable to that portion of the enrollment served, as defined in section 257.37, subsection 4, that is nonpublic school pupils served with media services by the area education agency.
   (e)  The amount calculated in section 257.37 for educational services for the school district that is attributable to that portion of the enrollment served, as defined in section 257.37, subsection 4, that is nonpublic school pupils served with educational services by the area education agency.
   b.  The department of management shall notify each school district of the amount of state aid deducted for these purposes and the balance of state aid shall be paid to the district. If a district does not qualify for state aid under this chapter in an amount sufficient to cover its amount due to the area education agency as calculated by the department of management, the school district shall pay the deficiency to the area education agency from other moneys received by the district, on a quarterly basis during each school year.
   Sec. 25.  Section 257.37, Code 2024, is amended to read as follows:
   257.37  Funding media and educational services.
   Media services and educational services provided by a school district or through the area education agencies agency shall be funded, to the extent provided, by an addition to the combined district cost of each school district, determined as follows:
   1.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for media services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for media services in the base year shall be divided by the enrollment served in the base year to provide an area media services cost per pupil in the base year, and the department of management shall compute the state media services cost per pupil in the base year which is equal to the average of the area media services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the supplemental state aid for media services in the budget year by multiplying the state media services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for media services cost in the budget year equals the area media services cost per pupil in the base year plus the supplemental state aid for media services in the budget year times the enrollment served in the budget year. Funds shall be paid to area education agencies as provided in section 257.35.  Funds not required to be paid to the area education agency as provided in section 257.35 may be used by the school district for media services provided by the district or by contract through the area education agency. A school district may use unreserved fund balances for media services in a manner which the school district determines is appropriate to best maintain the level of special education services.
   2.  Up to thirty percent of the budget of an area for media services may be expended for media resource material including the purchase or replacement of material required in section 273.6, subsection 1. Funds shall be paid to area education agencies as provided in section 257.35.
   3.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for educational services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for educational services in the base year shall be divided by the enrollment served in the area in the base year to provide an area educational services cost per pupil in the base year, and the department of management shall compute the state educational services cost per pupil in the base year, which is equal to the average of the area educational services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the supplemental state aid for educational services by multiplying the state educational services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for educational services for the budget year equals the area educational services cost per pupil for the base year plus the supplemental state aid for educational services in the budget year times the enrollment served in the area in the budget year. Funds shall be paid to area education agencies as provided in section 257.35.  Funds not required to be paid to the area education agency as provided in section 257.35 may be used by the school district for educational services provided by the district or by contract through the area education agency. A school district may use unreserved fund balances for educational services in a manner which the school district determines is appropriate to best maintain the level of special education services.
   4.  “Enrollment served” means the basic enrollment of all school districts within the boundaries of the area education agency plus the number of nonpublic school pupils served by the area education agency with media services or educational services, as applicable, except that if a nonpublic school pupil or a pupil attending another district under a whole grade sharing agreement or open enrollment receives services through an area other than the area of the pupil’s residence, the pupil shall be deemed to be served by the area of the pupil’s residence, which shall by contractual arrangement reimburse the area through which the pupil actually receives services. Each school district shall include in the enrollment report submitted pursuant to section 257.6, subsection 1, the number of nonpublic school pupils within each school district for media and educational services served by the area. However, the school district shall not include in the enrollment report nonpublic school pupils receiving classes or services funded entirely by federal grants or allocations.
   5.  a.  If an area education agency does not serve nonpublic school pupils in a manner comparable to services provided public school pupils for media and educational services, as determined by the state board of education, the state board shall instruct the department of management to reduce the funds for media services and educational services within the area one time by an amount to compensate for such reduced services. The media services budget shall be reduced by an amount equal to the product of the cost per pupil in basic enrollment for the budget year for media services times the difference between the enrollment served and the basic enrollment recorded for the area. The educational services budget shall be reduced by an amount equal to the product of the cost per pupil in basic enrollment for the budget year for educational services times the difference between the enrollment served and the basic enrollment recorded for the area.
   b.  This subsection applies only to media and educational services which cannot be diverted for religious purposes.
   c.  Notwithstanding this subsection, an area education agency shall distribute to nonpublic schools media materials purchased wholly or partially with federal funds in a manner comparable to the distribution of such media materials to public schools as determined by the director of the department of education.
   6.  For the budget year beginning July 1, 2002, and each succeeding budget year, notwithstanding the requirements of this section for determining the budgets and funding of media services and education services, an area education agency or school district may, within the limits of the total of the funds provided for the budget years pursuant to section 257.35, expend for special education support services an amount that exceeds the payment for special education support services pursuant to section 257.35 in order to maintain the level of required special education support services in the area education agency or the school district, as applicable.
   Sec. 26.  APPLICABILITY.  This division of this Act applies July 1, 2024, for school budget years beginning on or after that date.
DIVISION IV
INITIAL TEACHER COMPENSATION

   Sec. 27.  Section 257.10, subsection 12, paragraph d, Code 2024, is amended to read as follows:
   d.  Except as otherwise allowed under this paragraph, for the budget year beginning July 1, 2014, and succeeding budget years, the use of the funds calculated under this subsection shall comply with the requirements of chapter 284 and shall be distributed to teachers pursuant to section 284.15. The funds shall be used only to increase the payment for a teacher assigned to a leadership role pursuant to a framework or comparable system approved pursuant to section 284.15; to increase the percentages of teachers assigned to leadership roles; to increase the minimum teacher starting salary to thirty-three thousand five hundred dollars the amount provided in section 284.15, subsection 2, paragraph “a”, subparagraph (1); to cover the costs for the time mentor and lead teachers are not providing instruction to students in a classroom; for coverage of a classroom when an initial or career teacher is observing or co-teaching with a teacher assigned to a leadership role; for professional development time to learn best practices associated with the career pathways leadership process; and for other costs associated with a framework or comparable system approved by the department of education under section 284.15 with the goals of improving instruction and elevating the quality of teaching and student learning. If all requirements for the school district for the use of funds calculated under this subsection are met and funds received under this subsection remain unexpended and unobligated at the end of a fiscal year beginning on or after July 1, 2020, the school district may transfer all or a portion of such unexpended and unobligated funds for deposit in the school district’s flexibility account established under section 298A.2, subsection 2. At the end of a fiscal year beginning on or after July 1, 2022, school districts may use all or a portion of funds under this subsection for the purposes authorized under subsection 9, paragraph “d”, and, notwithstanding any provision of law to the contrary, school districts shall not be required to participate in or comply with section 284.15 in order to continue to receive funding under this subsection.
   Sec. 28.  Section 284.15, subsection 2, paragraph a, subparagraph (1), Code 2024, is amended to read as follows:
   (1)  The salary for an initial teacher who has successfully completed an approved practitioner preparation program as defined in section 256.145 or holds an initial or intern teacher license issued under chapter 256, subchapter VII, part 3, shall be at least thirty-three thousand five hundred forty-six thousand two hundred fifty-one dollars, which shall also constitute the minimum salary for an Iowa teacher.
   Sec. 29.  Section 284.16, subsection 1, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The beginning teacher shall be paid not less than thirty-three thousand five hundred forty-six thousand two hundred fifty-one dollars and shall meet the following requirements:
   Sec. 30.  Section 284.17, subsection 1, Code 2024, is amended to read as follows:
   1.  A minimum salary of thirty-three thousand five hundred forty-six thousand two hundred fifty-one dollars for a full-time teacher.
DIVISION V
AREA EDUCATION AGENCIES —— REQUIRED EVALUATIONS AND REPORTS

   Sec. 31.  AREA EDUCATION AGENCIES —— CONTINUOUS IMPROVEMENT.  On or before January 1, 2025, each area education agency shall submit a report to the director of the department of education and the general assembly that contains all of the following information:
   1.  Progress the area education agency has made in reducing expenditures associated with administration and administrators, including chief administrators, directors and department heads, regional administrators, regional and zone coordinators, district coordinators, and human resources and personnel managers by at least thirty percent by July 1, 2026.
   2.  A proposal for the reorganization of services provided by area education agencies to centralize some services provided by the area education agencies, including media services, and to create centers of excellence for other services.
   Sec. 32.  AREA EDUCATION AGENCY FACILITIES AND PROPERTY.  On or before January 1, 2025, the department of administrative services, in coordination with the department of education and each area education agency, shall submit a report to the general assembly that contains all of the following information:
   1.  An inventory of all real property and facilities owned by the area education agencies.
   2.  An evaluation of the value of all real property and facilities owned by the area education agencies.
   3.  An evaluation of how the real property and facilities owned by the area education agencies are used.
DIVISION VI
TEACHER SALARY SUPPLEMENT DISTRICT COST PER PUPIL

   Sec. 33.  Section 257.10, subsection 9, paragraph a, Code 2024, is amended to read as follows:
   a.  (1)  For the budget year beginning July 1, 2009, the department of management shall add together the teacher compensation allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “h”, Code 2009, and the phase II allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the district’s budget enrollment in the fiscal year beginning July 1, 2009, to determine the teacher salary supplement district cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years beginning before July 1, 2024, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
   (2)  For the budget year beginning July 1, 2024, the teacher salary supplement district cost per pupil for a school district shall be the greater of the following:
   (a)  The teacher salary supplement district cost per pupil for the school district for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
   (b)  The per pupil amount necessary, as calculated by the department of management, to allow the school district to provide a minimum teacher starting salary of forty-six thousand two hundred fifty-one dollars in accordance with the requirements of chapter 284, including costs associated with the employer’s share of contributions to the Iowa public employees’ retirement system and the employer’s share of the tax imposed by the federal Insurance Contributions Act.
   (3)  For the budget year beginning July 1, 2025, and succeeding budget years, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
DIVISION VII
DEPARTMENT OF EDUCATION REQUIREMENTS

   Sec. 34.  Section 256.9, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  70.  Develop and distribute to school districts and accredited nonpublic schools a process to facilitate the development of individualized education programs and assist individualized education program teams with decisions regarding free appropriate public education and placement for students enrolled in accredited nonpublic schools.
   NEW SUBSECTION.  71.  Provide professional learning and other support materials and tools for individualized education program teams, including students, families, teacher service providers, and administrators of both school districts and accredited nonpublic schools to help such individuals understand the processes required under the federal law that are relevant to students enrolled in accredited nonpublic schools and to promote informed participation in individualized education program meetings of students enrolled in accredited nonpublic schools.
   NEW SUBSECTION.  72.  Provide information to individualized education program teams and public agencies that nonpublic schools shall be considered a placement option so long as the individualized education program of a child with a disability does not require some other arrangement.
   NEW SUBSECTION.  73.  Develop and distribute to school districts professional learning and other materials for meaningful consultation for representatives of area education agencies, school districts, and accredited nonpublic schools.
   NEW SUBSECTION.  74.  Establish sustainable accountability and data collection systems related to special education that meet federal and state legal requirements and encourage innovative models for meeting the needs of students.
   NEW SUBSECTION.  75.  Develop and distribute to school districts and accredited nonpublic schools an implementation plan related to identifying, evaluating, and promoting strategies and models for providing special education and related services with accredited nonpublic schools that improve the experiences and outcomes for students with disabilities.
DIVISION VIII
STATE MANDATE

   Sec. 35.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection 3, shall not apply to this Act.>
   2.  Title page, by striking lines 1 through 7 and inserting <An Act relating to education, including modifying provisions related to the duties and powers of area education agencies, the membership of the boards of directors of area education agencies, the department of education, the department of administrative services, area education agency funding, the calculation of the teacher salary supplement district cost per pupil and the minimum teacher starting salary, and including transition, effective date, and applicability provisions.>