Senate File 2386 S-5042 Amend Senate File 2386 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION 5 Section 1. Section 256B.3, Code 2024, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 15A. Oversee the operation of each area 8 education agency to ensure the area education agency complies 9 with all applicable federal and state laws related to special 10 education. 11 Sec. 2. DIVISION OF SPECIAL EDUCATION —— EMPLOYEES. From 12 July 1, 2024, to June 30, 2025, the division of special 13 education of the department of education shall do all of the 14 following: 15 1. Devote at least thirteen full-time equivalent positions 16 within the department of education’s location in the city 17 of Des Moines to oversight of the area education agencies, 18 including the accreditation of area education agencies under 19 section 273.10. 20 a. At least one of the full-time equivalent positions shall 21 be an administrator. 22 b. At least one of the full-time equivalent positions shall 23 be a bureau chief of special education. 24 c. At least one of the full-time equivalent positions shall 25 be a liaison for accredited nonpublic schools. 26 d. At least one of the full-time equivalent positions shall 27 be an employee whose primary job duties relate to the child 28 find process for special education. 29 e. At least one of the full-time equivalent positions 30 shall be an employee whose primary job duties relate to best 31 practices concerning the development and implementation of 32 individualized education programs. 33 f. At least five of the full-time equivalent positions shall 34 be devoted to the accreditation of area education agencies. 35 -1- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 1/ 26 #1.

2. Within the main office of each area education agency, 1 devote an amount of full-time equivalent positions, as 2 determined by the division of special education of the 3 department of education but not to exceed forty full-time 4 equivalent positions in the aggregate, that is commensurate 5 with the number of students enrolled in school districts 6 located within the area education agency to ensure the area 7 education agency complies with all applicable federal and state 8 laws related to special education and to review the services 9 provided by the area education agency. 10 DIVISION II 11 AREA EDUCATION AGENCIES —— GENERAL PROVISIONS 12 Sec. 3. Section 256.9, Code 2024, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 36. Develop and distribute to school 15 districts, accredited nonpublic schools, and area education 16 agencies a list of evidence-based professional development 17 services that an area education agency may provide to a school 18 district or accredited nonpublic school pursuant to section 19 273.2, subsection 3, paragraph “b” . 20 Sec. 4. Section 273.2, subsections 1, 3, and 4, Code 2024, 21 are amended to read as follows: 22 1. There are established throughout the state fifteen 23 area education agencies, each of which is governed by an 24 area education agency board of directors under the general 25 supervision of the director, except as otherwise provided 26 in this chapter . Each area education agency shall have an 27 area education agency board of directors that shall serve in 28 an advisory capacity. The boundaries of an area education 29 agency shall not divide a school district. The director of 30 the department of education shall change boundaries of area 31 education agencies to take into account mergers of local school 32 districts and changes in boundaries of local school districts, 33 when necessary to maintain the policy of this chapter that a 34 local school district shall not be a part of more than one area 35 -2- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 2/ 26

education agency. 1 3. a. The area education agency board shall furnish 2 educational services and programs as provided in section 273.1 , 3 this section , sections 273.3 through 273.8 , and chapter 256B 4 to the pupils enrolled in public or nonpublic schools located 5 within its boundaries which are on the list of accredited 6 schools pursuant to section 256.11 , which request to receive 7 such services . The programs and services provided shall be 8 at least commensurate with programs and services existing on 9 July 1, 1974. The programs and services provided to pupils 10 enrolled in nonpublic schools shall be comparable to programs 11 and services provided to pupils enrolled in public schools 12 within constitutional guidelines. 13 b. The area education agency may furnish evidence-based 14 professional development services to public or nonpublic 15 schools which are on the list of accredited schools pursuant 16 to section 256.11 if any of the following requirements are 17 satisfied: 18 (1) The professional development service is included on the 19 list developed by the director of the department of education 20 pursuant to section 256.9, subsection 36. 21 (2) The director of the department of education grants 22 approval to the area education agency to furnish the 23 evidence-based professional development services. 24 4. The area education agency board shall provide for special 25 education services and media services for the local school 26 districts in the area and shall encourage and assist school 27 districts in the area to establish programs for gifted and 28 talented children. The board shall assist in facilitating 29 interlibrary loans of materials between school districts and 30 other libraries. 31 Sec. 5. Section 273.2, Code 2024, is amended by adding the 32 following new subsections: 33 NEW SUBSECTION . 4A. a. The area education agency board may 34 furnish services under subsection 3 or 4 to public or nonpublic 35 -3- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 3/ 26

schools located within its boundaries, or within the boundaries 1 of a contiguous area education agency, which are on the list of 2 accredited schools pursuant to section 256.11. 3 b. Notwithstanding paragraph “a” , the area education agency 4 board may furnish services under subsection 3 or 4 to a public 5 school located within the boundaries of an area education 6 agency that is not contiguous if the school district shares 7 a superintendent with another school district, pursuant to 8 section 257.11, subsection 5, that receives services from the 9 area education agency board pursuant to paragraph “a” . 10 NEW SUBSECTION . 4B. A school district shall not receive 11 services under subsection 3 or 4 from different area education 12 agency boards. 13 Sec. 6. Section 273.3, subsections 1, 11, and 12, Code 2024, 14 are amended to read as follows: 15 1. Determine the policies of Advise and consult with the 16 area education agency on policies and procedures for providing 17 programs and services. 18 11. Employ personnel to carry out the functions of the 19 area education agency which shall include the employment of 20 an administrator who shall possess a license issued under 21 chapter 256, subchapter VII, part 3 by the board of educational 22 examiners and, beginning July 1, 2025, a prekindergarten 23 through grade twelve superintendent and area education agency 24 administrator authorization issued by the board of educational 25 examiners and either a prekindergarten through grade twelve 26 principal and special education supervisor authorization issued 27 by the board of educational examiners or a director of special 28 education authorization issued by the board of educational 29 examiners . The administrator shall be employed pursuant to 30 section 279.20 and sections 279.23 , 279.24 , and 279.25 . The 31 salary for an area education agency administrator shall be 32 established by the board based upon the previous experience 33 and education of the administrator ; provided, however, that 34 the salary for an area education agency administrator shall 35 -4- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 4/ 26

not exceed one hundred twenty-five percent of the average 1 salary of all superintendents of the school districts that 2 are located within the boundaries of the area education 3 agency at the time the employment agreement is entered into or 4 renewed between an area education agency and an area education 5 agency administrator, not including superintendents who are 6 responsible for supplementary weighting being made available 7 to a school district pursuant to section 257.11, subsection 5 . 8 The salary for an area education agency administrator shall not 9 be reduced during the initial term of the employment agreement 10 between the area education agency and the area education agency 11 administrator. Section 279.13 applies to the area education 12 agency board and to all teachers employed by the area education 13 agency. Sections 279.23 , 279.24 , and 279.25 apply to the area 14 education board and to all administrators employed by the area 15 education agency. Section 279.69 applies to the area education 16 agency board and employees of the board, including part-time, 17 substitute, or contract employees, who provide services to a 18 school or school district. 19 12. Prepare an annual budget estimating income and 20 expenditures for programs and services as provided in sections 21 273.1 , 273.2 , this section , sections 273.4 through 273.8 , 22 and chapter 256B within the limits of funds provided under 23 section 256B.9 and chapter 257 . The board shall post notice 24 of a public hearing on submit the proposed budget on the area 25 education agency’s internet site and by publication in the 26 newspaper of general circulation in the territory of the area 27 education agency in which the principal place of business of 28 a school district that is a part of the area education agency 29 is located to the director of the department of education 30 for approval not later than March 1 of each year, and the 31 director shall either approve or reject the proposed budget for 32 changes within ten days after submission . The notice shall 33 specify the date, which shall be not later than March 1 of 34 each year, the time, and the location of the public hearing. 35 -5- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 5/ 26

The proposed budget as approved by the board director of the 1 department of education shall then be submitted to the state 2 board of education, on forms provided by the department, 3 no later than March 15 preceding the next fiscal year for 4 approval. The state board shall review the proposed budget of 5 each area education agency and shall before May 1, either grant 6 approval or return the budget without approval with comments 7 of the state board included. An unapproved budget shall be 8 resubmitted to the state board for final approval not later 9 than May 15. The state board shall give final approval only to 10 budgets submitted by area education agencies accredited by the 11 state board or that have been given conditional accreditation 12 by the state board. 13 Sec. 7. Section 273.3, Code 2024, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 26. On a quarterly basis, prepare and 16 submit to each school district that receives services from 17 the area education agency a report that includes all of the 18 following: 19 a. A monetary accounting of payments the area education 20 agency received from the school district, including payments 21 under section 257.35. 22 b. A description of all of the following: 23 (1) The special education services provided by the area 24 education agency to the school district. 25 (2) The services provided by the area education agency under 26 part C of the federal Individuals with Disabilities Education 27 Act. 28 (3) The services provided by the area education agency that 29 are related to the child find process for special education. 30 (4) The general supervision services provided by the area 31 education agency. 32 (5) The services provided by the area education agency to 33 accredited nonpublic schools and charter schools. 34 Sec. 8. Section 273.8, subsection 1, Code 2024, is amended 35 -6- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 6/ 26

to read as follows: 1 1. Board of directors. The board of directors of an area 2 education agency shall consist of not less than five nor more 3 than nine members , each a resident of and elected in the 4 manner provided in this section from a director district that 5 is approximately equal in population to the other director 6 districts in the area education agency . Each director shall 7 serve a four-year term which commences at the organization 8 meeting. 9 a. A majority of the members of the board of directors of 10 an area education agency must be superintendents of school 11 districts located within the boundaries of the area education 12 agency who are elected in the manner provided in this section. 13 b. The remainder of the members of the board of directors of 14 an area education agency must be residents of and elected in 15 the manner provided in this section from a director district 16 that is approximately equal in population to the other director 17 districts in the area education agency. 18 Sec. 9. Section 273.8, subsection 2, paragraphs c and d, 19 Code 2024, are amended to read as follows: 20 c. The board of each separate school district that is 21 located entirely or partially inside an area education agency 22 director district shall cast a vote for director of the area 23 education agency board based upon the ratio that the population 24 of the school district, or portion of the school district, in 25 the director district bears to the total population in the 26 director district. The population of each school district or 27 portion shall be determined by the department of education. 28 The member of the area education agency board to be elected 29 may be a superintendent of a local school district or a member 30 of a local school district board of directors and shall be an 31 elector and a resident of the director district , but shall not 32 be a school district employee . 33 d. Vacancies, as defined in section 277.29 , in the 34 membership of the area education agency board shall be filled 35 -7- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 7/ 26

for the unexpired portion of the term at a director district 1 convention called and conducted in the manner provided in 2 subsection 3 . A vacancy created in a membership position 3 described in section 273.8, subsection 1, paragraph “a” , 4 shall be filled for the unexpired portion of the term by 5 a superintendent of a school district located within the 6 boundaries of the area education agency at a director district 7 convention called and conducted in the manner provided in 8 subsection 3. 9 Sec. 10. Section 273.8, subsection 3, Code 2024, is amended 10 to read as follows: 11 3. Director district convention. If no candidate files 12 with the area education agency secretary by the deadline 13 specified in subsection 2 , or a vacancy occurs, or if otherwise 14 required as provided in section 273.23, subsection 3 , a 15 director district convention, attended by members of the 16 boards of directors of the local school districts located 17 within the director district, shall be called to elect a 18 board member for that director district , consistent with 19 the membership requirements described in subsection 1 . The 20 convention location shall be determined by the area education 21 agency administrator. Notice of the time, date, and place 22 of a director district convention shall be published by the 23 area education agency administrator in at least one newspaper 24 of general circulation in the director district at least 25 thirty days prior to the day of the convention. The cost of 26 publication shall be paid by the area education agency. A 27 candidate for election to the area education agency board shall 28 file a statement of candidacy with the area education agency 29 secretary at least ten days prior to the date of the director 30 district convention on forms prescribed by the department of 31 education, or nominations may be made at the convention by a 32 delegate from a board of directors of a school district located 33 within the director district. A statement of candidacy shall 34 include the candidate’s name, address, and school district. 35 -8- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 8/ 26

Delegates to director district conventions shall not be bound 1 by a school board or any school board member to pledge their 2 votes to any candidate prior to the date of the convention. 3 Sec. 11. Section 273.10, subsection 6, Code 2024, is amended 4 to read as follows: 5 6. a. If the deficiencies in an area education program have 6 not been corrected, the agency board director of the department 7 of education shall take one of the following actions within 8 sixty days from removal of accreditation: 9 (1) Merge the deficient program with a program from another 10 accredited area education agency. 11 (2) Contract with another area education agency or other 12 public educational institution for purposes of program 13 delivery. 14 b. The rules developed by the state board of education for 15 the accreditation process shall include provisions for removal 16 of accreditation, including provisions for proper notice to the 17 administrator of the area education agency, each member of the 18 board of directors of the area education agency, the department 19 of education, and the superintendents and administrators of the 20 schools of the districts served by the area education agency. 21 Sec. 12. Section 273.11, Code 2024, is amended to read as 22 follows: 23 273.11 Standards for accrediting area education programs. 24 1. The state board of education , in consultation with the 25 department of education, shall develop standards and rules 26 for the accreditation of area education agencies. Standards 27 shall be general in nature, but at a minimum shall identify 28 requirements addressing the services provided by each division, 29 as well as identifying indicators of quality that will permit 30 area education agencies, school districts, the division of 31 special education of the department of education, and the 32 general public to judge accurately the effectiveness of area 33 education agency services. 34 2. Standards developed shall include, but are not limited 35 -9- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 9/ 26

to, the following: 1 a. Support for school-community planning, including a means 2 of assessing needs, developing collaborative relationships 3 among community agencies, establishing shared direction , and 4 implementing program plans and reporting progress toward goals 5 for all students, including students with disabilities . 6 b. Professional Evidence-based professional development 7 programs that respond to current needs. 8 c. Support for curriculum development, instruction, and 9 assessment for services that address the areas of reading, 10 language arts, math , and science, using research-based 11 methodologies , for all students, including students with 12 disabilities . 13 d. Special education compliance and support. 14 e. Management services, including financial reporting and 15 purchasing as requested and funded by local districts. 16 f. Support for instructional media services that supplement 17 and support local district media centers and services. 18 g. Support for school technology planning and staff 19 development for implementing instructional technologies. 20 h. A program and services evaluation and reporting system 21 related to special education . 22 i. Support for school district libraries in accordance with 23 section 273.2, subsection 4 . 24 j. Support for early childhood service coordination for 25 families and children , age birth through three years, to 26 meet health, safety, and learning needs , including service 27 coordination . 28 k. Support for schools and school districts in analyzing 29 student achievement data related to the learning environment, 30 comparing data to the external knowledge base, and using that 31 information to guide schools and school districts in setting 32 goals and implementing actions to improve student learning for 33 all students, including students with disabilities. 34 l. Support for addressing the diverse learning needs of 35 -10- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 10/ 26

all children and youths with disabilities who are eligible for 1 special education, including through services that include 2 direct services to students with disabilities. 3 m. Support for schools and school districts to ensure 4 compliance with rules adopted by the state board of education 5 related to special education. 6 n. Support necessary to implement effective instruction for 7 all students, including students with disabilities, through 8 school technology services. 9 o. Support for students using educational programs and 10 services in a manner that is consistent with the educational 11 standards established pursuant to section 256.11. 12 p. Support for staff development and adult learners 13 utilizing evidence-based professional development in a manner 14 that meets the professional needs of staff and adult learners 15 consistent with standards adopted by the state board of 16 education. 17 q. Compliance with all relevant federal and state laws in 18 the provision of services and supports to students, including 19 students with disabilities. 20 Sec. 13. AREA EDUCATION AGENCY —— TASK FORCE. 21 1. The legislative council shall convene an area education 22 agency task force that shall do all of the following: 23 a. Study and make recommendations related to how to improve 24 the outcomes of students who utilize services provided by area 25 education agencies. 26 b. Study and make recommendations related to the amount of 27 compensation paid to administrators employed by area education 28 agencies, core services provided by area education agencies, 29 and how to best fund the following services provided by area 30 education agencies: 31 (1) Crisis response services. 32 (2) Media services for nonpublic schools. 33 (3) Professional development services. 34 (4) Cooperative purchasing. 35 -11- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 11/ 26

(5) Services associated with regional planning 1 partnerships. 2 (6) Services associated with the federal Carl D. Perkins 3 Career and Technical Education Improvement Act of 2006, 4 codified at 20 U.S.C. §2301 et seq., as amended. 5 (7) Services associated with the federal Every Student 6 Succeeds Act, Pub. L. No. 114-95. 7 (8) Services provided in conjunction with special education 8 equipment. 9 c. Study and make recommendations related to all of the 10 following: 11 (1) The real property and facilities utilized by each area 12 education agency. 13 (2) The media services, educational services, and special 14 education services provided by each area education agency. 15 (3) What services area education agencies should provide. 16 (4) Current accountability measures applicable to area 17 education agencies. 18 (5) The special education services provided by the division 19 of special education of the department of education, area 20 education agencies, and school districts. 21 (6) The overall organizational structure that determines 22 how special education services are provided to students in this 23 state. 24 (7) How the operation of area education agencies is 25 overseen. 26 (8) The accreditation standards related to area education 27 agencies. 28 (9) A timeline for modifications to the staffing numbers of 29 area education agencies and the transition of responsibilities 30 related to the oversight of area education agencies. 31 2. a. The task force shall consist of the following 32 voting members who are appointed by the legislative council to 33 represent different geographical regions of this state: 34 (1) One special education teacher who is employed by a 35 -12- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 12/ 26

school district with a total enrollment of greater than or 1 equal to one thousand students. 2 (2) One special education teacher who is employed by a 3 school district with a total enrollment of less than one 4 thousand students. 5 (3) One superintendent who is employed by a school district 6 with a total enrollment of greater than or equal to one 7 thousand students. 8 (4) One superintendent who is employed by a school district 9 with a total enrollment of less than one thousand students. 10 (5) One teacher who is employed by a school district and who 11 does not provide special education programs or services. 12 (6) One parent or guardian of a student who has an 13 individualized education program. 14 (7) One parent or guardian of a student who has a plan under 15 section 504 of the Rehabilitation Act, 29 U.S.C. §794. 16 (8) One president or chief executive officer of an 17 accredited nonpublic school. 18 b. The task force shall also consist of the following voting 19 members: 20 (1) One member to be appointed by the governor. 21 (2) One member to be appointed by the director of the 22 department of education. 23 (3) One member who is the chief administrator of the 24 heartland area education agency. 25 c. The task force shall also consist of the following ex 26 officio, nonvoting members of the general assembly: 27 (1) Two state senators appointed by the majority leader of 28 the senate. 29 (2) One state senator appointed by the minority leader of 30 the senate. 31 (3) Two state representatives appointed by the speaker of 32 the house of representatives. 33 (4) One state representative appointed by the minority 34 leader of the house of representatives. 35 -13- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 13/ 26

3. Any expenses incurred by a member of the task force 1 shall be the responsibility of the individual member or the 2 respective entity represented by the member. 3 4. The task force shall submit its findings and 4 recommendations in a report to the general assembly on 5 or before December 31, 2024. The report shall include an 6 examination and evaluation of the impact to area education 7 agencies and their operations and services made by this Act. 8 Sec. 14. AREA EDUCATION AGENCY BOARDS OF DIRECTORS —— 9 TRANSITION. 10 1. a. If, as of July 1, 2024, the membership of an area 11 education agency board of directors does not comply with the 12 provisions of section 273.8, subsection 1, as amended in this 13 division of this Act, the members of the boards of directors of 14 the local school districts located within the area education 15 agency director districts shall select the applicable number 16 of the members of the area education agency board of directors 17 whose terms shall, as of July 1, 2024, be deemed to have 18 expired, notwithstanding the terms of office associated with 19 the members under section 273.8, subsection 1, as amended in 20 this division of this Act. 21 b. If the members of the boards of directors of the local 22 school districts located within the area education agency 23 director districts are unable to select the applicable number 24 of the members of the area education agency board of directors 25 whose terms shall be deemed to have expired, as required in 26 paragraph “a”, the director of the department of education 27 shall select the applicable number of such members. 28 2. The membership of the board members that were selected 29 under subsection 1 shall be deemed vacant when such selection 30 is made. A director district convention shall be called under 31 section 273.8, subsection 3, to fill such vacancies. 32 3. From the time the membership of the board members is 33 deemed vacant pursuant to subsection 2 until the time the 34 vacancies are filled through the director district convention, 35 -14- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 14/ 26

the area education agency board shall be authorized to exercise 1 all power granted to it under chapter 273, notwithstanding the 2 lack of a quorum under section 273.8, subsection 5. 3 Sec. 15. EFFECTIVE DATE. The following take effect July 1, 4 2025: 5 1. The portion of the section of this division of this Act 6 amending section 273.2, subsection 1. 7 2. The portion of the section of this division of this Act 8 amending section 273.3, subsection 1. 9 Sec. 16. APPLICABILITY. The following applies to 10 employment agreements entered into or renewed between an area 11 education agency and an area education agency administrator on 12 or after July 1, 2024: 13 The portion of the section of this division of this Act 14 amending section 273.3, subsection 11. 15 Sec. 17. APPLICABILITY. The following apply to members of 16 the boards of directors of area education agencies elected on 17 or after July 1, 2024: 18 1. The section of this division of this Act amending section 19 273.8, subsection 1. 20 2. The section of this division of this Act amending section 21 273.8, subsection 2, paragraph “c”. 22 DIVISION III 23 AREA EDUCATION AGENCIES —— FUNDING 24 Sec. 18. Section 257.1, subsection 3, Code 2024, is amended 25 to read as follows: 26 3. Computations rounded. In making computations and 27 payments under this chapter , except in the case of computations 28 relating to funding of special education support services, 29 media services, and educational services provided through the 30 area education agencies under section 257.37 , and the teacher 31 salary supplement, the professional development supplement, 32 the early intervention supplement, and the teacher leadership 33 supplement, the department of management shall round amounts to 34 the nearest whole dollar. 35 -15- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 15/ 26

Sec. 19. Section 257.10, subsection 7, Code 2024, is amended 1 to read as follows: 2 7. Special education support services district cost. Special 3 education support services district cost for a school district 4 for a budget year is equal to the special education support 5 services district cost per pupil for the budget year multiplied 6 by the special education support services weighted enrollment 7 for the district for the budget year. If the special education 8 support services district cost for a school district for 9 a budget year is less than the special education support 10 services district cost for that district for the base year, the 11 department of management shall adjust the special education 12 support services district cost for that district for the 13 budget year to equal the special education support services 14 district cost for the base year. Funds calculated under this 15 subsection and received by a school district shall be used by 16 the school district for special education support services 17 contracted from an area education agency. The contract between 18 the school district and the area education agency shall not 19 require the school district to describe the specific special 20 education services the school district will receive from the 21 area education agency. The special education services provided 22 by the area education agency to the school district pursuant to 23 the contract shall not be limited by the amount of funding the 24 school district provided to the area education agency. 25 Sec. 20. Section 257.10, subsection 8, paragraph a, Code 26 2024, is amended to read as follows: 27 a. Combined district cost is the sum of the regular program 28 district cost per pupil multiplied by the weighted enrollment, 29 the special education support services district cost, the 30 total teacher salary supplement district cost, the total 31 professional development supplement district cost, the total 32 early intervention supplement district cost, and the total 33 teacher leadership supplement district cost, plus the sum of 34 the additional district cost allocated to the district to fund 35 -16- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 16/ 26

media services and educational services provided through the 1 area education agency under section 257.37 , the area education 2 agency total teacher salary supplement district cost and the 3 area education agency total professional development supplement 4 district cost. 5 Sec. 21. Section 257.35, subsection 1, Code 2024, is amended 6 to read as follows: 7 1. a. (1) The For fiscal years beginning before July 1, 8 2025, the department of management shall deduct the amounts 9 calculated for special education support services, media 10 services, area education agency teacher salary supplement 11 district cost, area education agency professional development 12 supplement district cost, and educational services for each 13 school district from the state aid due to the district pursuant 14 to this chapter and shall pay the amounts to the respective 15 area education agencies on a monthly basis from September 15 16 through June 15 during each school year. 17 (2) (a) For the fiscal year beginning July 1, 2025, and 18 each fiscal year thereafter, the department of management shall 19 deduct the area education agency teacher salary supplement 20 district cost from the state aid due to each school district 21 pursuant to this chapter and shall pay the amounts to the 22 respective area education agencies on a monthly basis from 23 September 15 through June 15 during each school year. 24 (b) For the fiscal year beginning July 1, 2025, and each 25 fiscal year thereafter, the department of management shall 26 deduct the area education agency professional development 27 supplement district cost from the state aid due to each school 28 district pursuant to this chapter and shall pay the amounts 29 to the department of education to be used for evidence-based 30 professional development purposes. 31 b. The department of management shall notify each school 32 district of the amount of state aid deducted for these purposes 33 and the balance of state aid shall be paid to the district. If 34 a district does not qualify for state aid under this chapter 35 -17- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 17/ 26

in an amount sufficient to cover its amount due to the area 1 education agency or the department of education as calculated 2 by the department of management, the school district shall pay 3 the deficiency to the area education agency or department of 4 education, as applicable, from other moneys received by the 5 district, on a quarterly basis during each school year. 6 Sec. 22. Section 257.36, subsection 1, Code 2024, is amended 7 to read as follows: 8 1. Notwithstanding chapters 256B and 273 and sections 9 of this chapter relating to the moneys available to school 10 districts and area education agencies for special education 11 support services, for each school year, the department of 12 education may direct the department of management to deduct 13 amounts from the portions of school district budgets that 14 fund special education support services in an area education 15 agency. The total amount deducted in an area for a school 16 district shall be based upon excess special education support 17 services unreserved and undesignated fund balances in that 18 school district or paid by the school district to an area 19 education agency for a school year that remain unreserved and 20 undesignated as determined by the department of education. The 21 department of management shall determine the amount deducted 22 from each school district in an area education agency on 23 a proportional basis. The department of management shall 24 determine from the amounts deducted from the portions of school 25 district budgets that fund area education agency special 26 education support services the amount that would have been 27 local property taxes and the amount that would have been state 28 aid and for the next following budget year shall increase the 29 district’s total state school aid available under this chapter 30 for area education agency special education support services 31 and reduce the district’s property tax levy for area education 32 agency special education support services by the amount 33 necessary for the property tax portion of the deductions made 34 under this section during the budget year. 35 -18- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 18/ 26

Sec. 23. Section 257.37, Code 2024, is amended to read as 1 follows: 2 257.37 Funding media and educational services. 3 Media services and educational services provided by a school 4 district or through the area education agencies agency shall be 5 funded, to the extent provided, by an addition to the combined 6 district cost of each school district, determined as follows: 7 1. For the budget year beginning July 1, 1991, and 8 succeeding budget years, the total amount funded in each area 9 for media services shall be computed as provided in this 10 subsection . For the budget year beginning July 1, 1991, the 11 total amount funded in each area for media services in the base 12 year shall be divided by the enrollment served in the base year 13 to provide an area media services cost per pupil in the base 14 year, and the department of management shall compute the state 15 media services cost per pupil in the base year which is equal 16 to the average of the area media services costs per pupil in 17 the base year. For the budget year beginning July 1, 1991, and 18 succeeding budget years, the department of management shall 19 compute the supplemental state aid for media services in the 20 budget year by multiplying the state media services cost per 21 pupil in the base year times the state percent of growth for 22 the budget year, and the total amount funded in each area for 23 media services cost in the budget year equals the area media 24 services cost per pupil in the base year plus the supplemental 25 state aid for media services in the budget year times the 26 enrollment served in the budget year. Funds For fiscal years 27 beginning before July 1, 2025, funds shall be paid to area 28 education agencies as provided in section 257.35 . For fiscal 29 years beginning on or after July 1, 2025, funds may be used by 30 the school district for media services provided by the district 31 or by contract through an area education agency. A school 32 district may use unreserved fund balances for media services 33 for special education support services. 34 2. Up to thirty percent of the budget of an area for media 35 -19- SF 2386.3387 (1) 90 (amending this SF 2386 to CONFORM to HF 2612) jda/jh 19/ 26