HOUSE FILE 384

BY  SCHULTZ

A BILL FOR

An Act authorizing area education agencies to competitively bid to provide services to school districts and accredited nonpublic schools.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 256B.2, subsections 4 and 5, Code 2011, are amended to read as follows:
   4.  Every child requiring special education shall, if reasonably possible, receive a level of education commensurate with the level provided each child who does not require special education. The cost of providing such an education shall be paid as provided in section sections 273.9 and 273.16, this chapter, and chapter 257. It shall be the primary responsibility of each school district to provide special education to children who reside in that district if the children requiring special education are properly identified, the educational program or service has been approved, the teacher or instructor has been licensed, the number of children requiring special education needing that educational program or service is sufficient to make offering the program or service feasible, and the program or service cannot more economically and equably be obtained from the area education agency, another school district, another group of school districts, a qualified private agency, or in cooperation with one or more other districts.
   5.  Moneys received by the school district of the child’s residence for the child’s education, derived from moneys received through chapter 257, this chapter, and section 273.9 shall be paid by the school district of the child’s residence to the appropriate education agency, private agency, or other school district providing special education for the child pursuant to contractual arrangements as provided in section 273.3, subsections 5 and 6, or section 273.16.
   Sec. 2.  Section 273.2, subsections 3 and 4, Code 2011, are amended to read as follows:
   3.  The Except as provided in section 273.16, the area education agency board shall furnish educational services and programs as provided in sections 273.1 to 273.9 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 programs and services provided shall be at least commensurate with programs and services existing on July 1, 1974. 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.
   4.
  a.  The Except as provided in section 273.16, the area education agency board shall provide for special education services and media services for the local school districts in the area and shall encourage and assist school districts in the area to establish programs for gifted and talented children.
   b.  The board shall assist in facilitating interlibrary loans of materials between school districts and other libraries. Each area education agency shall include as a member of its media center advisory committee a library service area trustee or library service area staff member, who is appointed to the committee by the commission of libraries.
   Sec. 3.  Section 273.3, subsections 2 and 12, Code 2011, are amended to read as follows:
   2.  Be authorized to receive and expend money for providing programs and services as provided in sections 273.1 to 273.9, and 273.16, and chapters 256B and 257. All costs incurred in providing the programs and services, including administrative costs, shall be paid from funds received pursuant to sections 273.1 to 273.9, and 273.16, and chapters 256B and 257.
   12.  Prepare an annual budget estimating income and expenditures for programs and services as provided in sections 273.1 to 273.9, and 273.16, and chapter 256B within the limits of funds provided under section 256B.9 and chapter 257. The board shall give notice of a public hearing on the proposed budget by publication in an official county newspaper in each county in the territory of the area education agency in which the principal place of business of a school district that is a part of the area education agency is located. The notice shall specify the date, which shall be not later than March 1 of each year, the time, and the location of the public hearing. The proposed budget as approved by the board shall then be submitted to the state board of education, on forms provided by the department, no later than March 15 preceding the next fiscal year for approval. The state board shall review the proposed budget of each area education agency and shall before April 1, either grant approval or return the budget without approval with comments of the state board included. An unapproved budget shall be resubmitted to the state board for final approval not later than April 15. For the fiscal year beginning July 1, 1999, and each succeeding fiscal year, the state board shall give final approval only to budgets submitted by area education agencies accredited by the state board or that have been given conditional accreditation by the state board.
   Sec. 4.  Section 273.5, unnumbered paragraph 1, Code 2011, 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 and to school districts pursuant to section 273.16. 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 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. 5.  Section 273.9, subsection 1, Code 2011, is amended to read as follows:
   1.  School districts shall pay for the programs and services provided through the an area education agency and shall include expenditures for the programs and services in their budgets, in accordance with this section.
   Sec. 6.  NEW SECTION.  273.16  Competitive bidding procedures.
   1.  The board of directors of a school district or the authorities in charge of an accredited nonpublic school may issue to any area education agency established under this chapter a request for bids and proposals for items and services that an area education agency is required or authorized under this chapter and chapter 256B to provide to a school district or accredited nonpublic school located within its boundaries. An area education agency that enters into a contract pursuant to this section shall meet all of the requirements of this chapter and chapter 256B relating to the provision of the item or service that the area education agency is under contract to provide.
   2.  A school district or accredited nonpublic school shall only enter into a contract with the lowest responsible bidder.
   3.  If a contract entered into pursuant to this section is for special education services for a child requiring special education under chapter 256B, the contract shall be entered into with the area education agency with the lowest responsible bid that also maintains a special education instructional program that is appropriate to meet the child’s educational needs.
   4.  If an area education agency other than the area education agency in which the school district or accredited nonpublic school is located is awarded a contract by a school district or accredited nonpublic school pursuant to this section, the area education agency in which the school district or accredited nonpublic school is located shall be responsible for the payment, on a quarterly basis, of the cost per pupil plus weightings or the actual special education costs, whichever amount is greater, to the area education agency awarded the contract for the duration of the contract.
   5.  Notwithstanding any other provision to the contrary, if a school district or accredited nonpublic school enters into a contract with an area education agency other than the area education agency in which the school district or school is located, the area education agency in which the school district or school is located is not responsible for providing the items or services that are the subject of the contract to the school district or school.
EXPLANATION
   This bill authorizes the board of directors of a school district or the authorities in charge of an accredited nonpublic school to issue to any area education agency (AEA) in the state a request for bids and proposals for items and services that an AEA is required or authorized to provide to a school district or accredited nonpublic school located within its boundaries. An AEA that enters into such a contract pursuant to this section shall meet all of the requirements of Code chapter 273 and Code chapter 256B relating to the provision of the item or service that the AEA is under contract to provide.
   A school district or accredited nonpublic school shall only enter into a contract with the lowest responsible bidder.
   If such a contract entered into is for special education services for a child requiring special education under Code chapter 256B, the contract shall only be entered into with the lowest responsible bid that also maintains a special education instructional program that is appropriate to meet the child’s educational needs.
   If an AEA other than the AEA in which the school district or accredited nonpublic school is located is awarded such a contract, the AEA in which the school district or accredited nonpublic school is located shall be responsible for the payment, on a quarterly basis, of the cost per pupil plus weightings or actual special education costs incurred in providing appropriate special education, whichever amount is greater, to the AEA awarded the contract for the duration of the contract.
   If a school district or accredited nonpublic school enters into such a contract with another AEA, the AEA in which the school district or school is located is not responsible for providing the items or services contracted for to the school district or school.