H.F. 384 Section 1. Section 256B.2, subsections 4 and 5, Code 2011, 1 are amended to read as follows: 2 4. Every child requiring special education shall, if 3 reasonably possible, receive a level of education commensurate 4 with the level provided each child who does not require special 5 education. The cost of providing such an education shall 6 be paid as provided in section sections 273.9 and 273.16 , 7 this chapter , and chapter 257 . It shall be the primary 8 responsibility of each school district to provide special 9 education to children who reside in that district if the 10 children requiring special education are properly identified, 11 the educational program or service has been approved, the 12 teacher or instructor has been licensed, the number of children 13 requiring special education needing that educational program or 14 service is sufficient to make offering the program or service 15 feasible, and the program or service cannot more economically 16 and equably be obtained from the area education agency, another 17 school district, another group of school districts, a qualified 18 private agency, or in cooperation with one or more other 19 districts. 20 5. Moneys received by the school district of the child’s 21 residence for the child’s education, derived from moneys 22 received through chapter 257 , this chapter , and section 273.9 23 shall be paid by the school district of the child’s residence 24 to the appropriate education agency, private agency, or other 25 school district providing special education for the child 26 pursuant to contractual arrangements as provided in section 27 273.3 , subsections 5 and 6 , or section 273.16 . 28 Sec. 2. Section 273.2, subsections 3 and 4, Code 2011, are 29 amended to read as follows: 30 3. The Except as provided in section 273.16, the area 31 education agency board shall furnish educational services 32 and programs as provided in sections 273.1 to 273.9 and 33 chapter 256B to the pupils enrolled in public or nonpublic 34 schools located within its boundaries which are on the list of 35 -1- LSB 1511HH (1) 84 kh/sc 1/ 6

H.F. 384 accredited schools pursuant to section 256.11 . The programs 1 and services provided shall be at least commensurate with 2 programs and services existing on July 1, 1974. The programs 3 and services provided to pupils enrolled in nonpublic schools 4 shall be comparable to programs and services provided to pupils 5 enrolled in public schools within constitutional guidelines. 6 4. a. The Except as provided in section 273.16, the area 7 education agency board shall provide for special education 8 services and media services for the local school districts in 9 the area and shall encourage and assist school districts in the 10 area to establish programs for gifted and talented children. 11 b. The board shall assist in facilitating interlibrary loans 12 of materials between school districts and other libraries. 13 Each area education agency shall include as a member of its 14 media center advisory committee a library service area trustee 15 or library service area staff member, who is appointed to the 16 committee by the commission of libraries. 17 Sec. 3. Section 273.3, subsections 2 and 12, Code 2011, are 18 amended to read as follows: 19 2. Be authorized to receive and expend money for providing 20 programs and services as provided in sections 273.1 to 273.9 , 21 and 273.16, and chapters 256B and 257 . All costs incurred in 22 providing the programs and services, including administrative 23 costs, shall be paid from funds received pursuant to sections 24 273.1 to 273.9 , and 273.16, and chapters 256B and 257 . 25 12. Prepare an annual budget estimating income and 26 expenditures for programs and services as provided in sections 27 273.1 to 273.9 , and 273.16, and chapter 256B within the limits 28 of funds provided under section 256B.9 and chapter 257 . The 29 board shall give notice of a public hearing on the proposed 30 budget by publication in an official county newspaper in each 31 county in the territory of the area education agency in which 32 the principal place of business of a school district that is 33 a part of the area education agency is located. The notice 34 shall specify the date, which shall be not later than March 1 35 -2- LSB 1511HH (1) 84 kh/sc 2/ 6

H.F. 384 of each year, the time, and the location of the public hearing. 1 The proposed budget as approved by the board shall then be 2 submitted to the state board of education, on forms provided 3 by the department, no later than March 15 preceding the next 4 fiscal year for approval. The state board shall review the 5 proposed budget of each area education agency and shall before 6 April 1, either grant approval or return the budget without 7 approval with comments of the state board included. An 8 unapproved budget shall be resubmitted to the state board for 9 final approval not later than April 15. For the fiscal year 10 beginning July 1, 1999, and each succeeding fiscal year, the 11 state board shall give final approval only to budgets submitted 12 by area education agencies accredited by the state board or 13 that have been given conditional accreditation by the state 14 board. 15 Sec. 4. Section 273.5, unnumbered paragraph 1, Code 2011, 16 is amended to read as follows: 17 There shall be established a division of special education 18 of the area education agency which shall provide for special 19 education programs and services to the local school districts 20 and to school districts pursuant to section 273.16 . The 21 division of special education shall be headed by a director 22 of special education who meets certification standards of the 23 department of education. The director of special education 24 shall have the responsibility for implementation of state 25 regulations and guidelines relating to special education 26 programs and services. The director of special education shall 27 have the following powers and duties: 28 Sec. 5. Section 273.9, subsection 1, Code 2011, is amended 29 to read as follows: 30 1. School districts shall pay for the programs and services 31 provided through the an area education agency and shall include 32 expenditures for the programs and services in their budgets, in 33 accordance with this section . 34 Sec. 6. NEW SECTION . 273.16 Competitive bidding procedures. 35 -3- LSB 1511HH (1) 84 kh/sc 3/ 6

H.F. 384 1. The board of directors of a school district or the 1 authorities in charge of an accredited nonpublic school may 2 issue to any area education agency established under this 3 chapter a request for bids and proposals for items and services 4 that an area education agency is required or authorized under 5 this chapter and chapter 256B to provide to a school district 6 or accredited nonpublic school located within its boundaries. 7 An area education agency that enters into a contract pursuant 8 to this section shall meet all of the requirements of this 9 chapter and chapter 256B relating to the provision of the item 10 or service that the area education agency is under contract to 11 provide. 12 2. A school district or accredited nonpublic school shall 13 only enter into a contract with the lowest responsible bidder. 14 3. If a contract entered into pursuant to this section is 15 for special education services for a child requiring special 16 education under chapter 256B, the contract shall be entered 17 into with the area education agency with the lowest responsible 18 bid that also maintains a special education instructional 19 program that is appropriate to meet the child’s educational 20 needs. 21 4. If an area education agency other than the area education 22 agency in which the school district or accredited nonpublic 23 school is located is awarded a contract by a school district 24 or accredited nonpublic school pursuant to this section, 25 the area education agency in which the school district or 26 accredited nonpublic school is located shall be responsible for 27 the payment, on a quarterly basis, of the cost per pupil plus 28 weightings or the actual special education costs, whichever 29 amount is greater, to the area education agency awarded the 30 contract for the duration of the contract. 31 5. Notwithstanding any other provision to the contrary, if 32 a school district or accredited nonpublic school enters into 33 a contract with an area education agency other than the area 34 education agency in which the school district or school is 35 -4- LSB 1511HH (1) 84 kh/sc 4/ 6

H.F. 384 located, the area education agency in which the school district 1 or school is located is not responsible for providing the items 2 or services that are the subject of the contract to the school 3 district or school. 4 EXPLANATION 5 This bill authorizes the board of directors of a school 6 district or the authorities in charge of an accredited 7 nonpublic school to issue to any area education agency (AEA) 8 in the state a request for bids and proposals for items and 9 services that an AEA is required or authorized to provide 10 to a school district or accredited nonpublic school located 11 within its boundaries. An AEA that enters into such a contract 12 pursuant to this section shall meet all of the requirements 13 of Code chapter 273 and Code chapter 256B relating to the 14 provision of the item or service that the AEA is under contract 15 to provide. 16 A school district or accredited nonpublic school shall only 17 enter into a contract with the lowest responsible bidder. 18 If such a contract entered into is for special education 19 services for a child requiring special education under Code 20 chapter 256B, the contract shall only be entered into with the 21 lowest responsible bid that also maintains a special education 22 instructional program that is appropriate to meet the child’s 23 educational needs. 24 If an AEA other than the AEA in which the school district 25 or accredited nonpublic school is located is awarded such a 26 contract, the AEA in which the school district or accredited 27 nonpublic school is located shall be responsible for the 28 payment, on a quarterly basis, of the cost per pupil plus 29 weightings or actual special education costs incurred in 30 providing appropriate special education, whichever amount is 31 greater, to the AEA awarded the contract for the duration of 32 the contract. 33 If a school district or accredited nonpublic school enters 34 into such a contract with another AEA, the AEA in which the 35 -5- LSB 1511HH (1) 84 kh/sc 5/ 6