SENATE/HOUSE FILE _____

BY  (PROPOSED GOVERNOR’S BILL)

A BILL FOR

An Act creating an Iowa preschool scholarship program for four-year-old children, repealing the statewide preschool program for four-year-old children, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

STATEWIDE PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD CHILDREN
   Section 1.  Section 237A.21, subsection 3, paragraph p, Code 2011, is amended to read as follows:
   p.  One person who is part of a local program implementing thestatewide preschool program for four-year-old children under chapter 256C 256J.
   Sec. 2.  Section 237A.22, subsection 1, paragraph f, Code 2011, is amended to read as follows:
   f.  Make recommendations for improving collaborations between the child care programs involving the department and programs supporting the education and development of young children including but not limited to the federal head start program, the statewide preschool program for four-year-old children and the early childhood, at-risk, and other early education programs administered by the department of education.
   Sec. 3.  Section 256.11, subsection 1, paragraph c, Code 2011, is amended to read as follows:
   c.  For the purposes of this subsection,“prekindergarten program” includes but is not limited to a school district’s implementation of the preschool program established pursuant to chapter 256C 256J.
   Sec. 4.  Section 257.16, subsection 1, Code 2011, is amended to read as follows:
   1.  There is appropriated each year from the general fund of the state an amount necessary to pay the foundation aid under this chapter,the preschool foundation aid under chapter 256C, supplementary aid under section 257.4, subsection 2, and adjusted additional property tax levy aid under section 257.15, subsection 4.
   Sec. 5.  Section 272.2, subsection 18, Code 2011, is amended to read as follows:
   18.  May adopt rules for practitioners who are not eligible for a statement of professional recognition under subsection 10, but have received a baccalaureate degree and provide a service to students at any or all levels from prekindergarten through grade twelve for a school district, accredited nonpublic school, area education agency, or preschool program established pursuant to chapter 256C 256J.
   Sec. 6.  Section 285.1, subsection 1, paragraph a, subparagraph (3), Code 2011, is amended to read as follows:
   (3)  Children attending prekindergarten programs offered or sponsored by the district or nonpublic school and approved by the department of education or department of human services or children participating in preschool in an approved local program under chapter 256C 256J may be provided transportation services. However, transportation services provided to nonpublic school children are not eligible for reimbursement under this chapter.
   Sec. 7.  REPEAL.  Chapter 256C, Code 2011, is repealed.
   Sec. 8.  EFFECTIVE DATE AND APPLICABILITY.  This division of this Act takes effect July 1, 2011, and applies to budget years beginning on or after July 1, 2011.

DIVISION II

PRESCHOOL PROGRAM FOR FOUR-YEAR-OLD CHILDREN
   Sec. 9.  NEW SECTION.  256J.1  Definitions.
   As used in this chapter:
   1.  “Department” means the department of education.
   2.  “Director” means the director of the department of education.
   3.  “Eligible school district” or“school district” means a school corporation organized under chapter 274 that meets the requirements of section 256J.3, subsection 4, and has been approved by the department to implement preschool programs as provided in this chapter.
   4.  “Preschool scholarship” means the state funding allocated to school districts to pay tuition for eligible children enrolled in preschool programs implemented pursuant to this chapter.
   5.  “Private education partner” means a private preschool provider that may submit claims for reimbursement to a school district for providing high-quality preschool instruction to four-year-old children receiving scholarships in accordance with this chapter.
   6.  “State board” means the state board of education.
   Sec. 10.  NEW SECTION.  256J.2  Preschool program for four-year-old children —— scholarships —— purpose.
   1.  A preschool program for four-year-old children is established in the department to provide an opportunity for all eligible children, including economically disadvantaged children, to enter school ready to learn. The purpose of the preschool scholarship program shall be to provide scholarships to pay for eligible four-year-old children to attend high-quality preschool provided by school districts or private education partners.
   2.  The state board shall adopt rules pursuant to chapter 17A, and may adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, as necessary to implement this chapter.
   Sec. 11.  NEW SECTION.  256J.3  Preschool program requirements.
   1.  Eligible children.  A child who is a resident of Iowa and is four years of age on or before September 15 of a school year is eligible to enroll, based on order of registration, in a preschool program implemented pursuant to this chapter and may be eligible for a preschool scholarship based upon the most current sliding tuition scale determined and published by the department in accordance with subsection 5. A school district approved to participate in the preschool program pursuant to this chapter may enroll a younger child in the preschool program if space is available; however, the child shall not be counted in the preschool enrollment count for preschool scholarship funding purposes under section 256J.5.
   a.  A family may choose to enroll the family’s four-year- old child in an approved school district preschool program or a preschool program implemented by a private education partner. Families shall complete all enrollment requirements, including but not limited to income verification.
   b.  A school district or a private education partner may charge tuition for children participating in the preschool program, but shall not charge more for tuition than the amount determined and published by the department. All families enrolling eligible children are required to pay tuition based on income and the most current sliding tuition scale determined and published by the department.
   2.  Teacher requirements.
   a.  An individual serving as a preschool teacher in the preschool program for four-year-old children shall be employed by or under contract with the approved school district or by a private education partner located within the approved school district’s boundaries and shall meet one of the following qualifications:
   (1)  The individual is appropriately licensed under chapter 272 and meets the requirements of chapter 284.
   (2)  The individual possesses, or is working toward obtaining within two years of starting employment under this subsection, an early childhood certificate of eligibility issued under chapter 272, and meets either of the following conditions:
   (a)  Holds a bachelor’s or graduate degree from an accredited college or university.
   (b)  Holds an associate of arts degree and is working toward obtaining a bachelor’s degree within three years. This subparagraph division (b) is repealed August 31, 2014.
   b.  A preschool teacher in an approved preschool program shall collaborate with other agencies, organizations, and boards in the community to further the program’s capacity to meet the diverse needs of the children enrolled in the program and the families of the children, such as needs for early care, health, and human services. In addition, the approved preschool program shall work to maintain relationships with each child’s family in order to enhance the child’s development in all settings by collaborating with providers of parent education and family support opportunities.
   3.  Program requirements —— program approval.  The state board shall adopt rules to further define the following preschool program requirements, which shall be used to determine whether or not a local program implemented by a school district or private education partner qualifies for approval to implement a preschool program:
   a.  Maximum and minimum teacher-to-child ratios and class sizes.
   b.  Applicable state and federal program standards.
   c.  Student learning standards.
   d.  Applicable comprehensive statewide child assessment determined by the department.
   e.  Provisions for the integration of children from other state and federally funded preschools.
   f.  Collaboration with participating families, early care providers, and community partners including but not limited to early childhood Iowa area boards, head start programs, shared visions, licensed child care centers, registered child development homes, early childhood special education programs, services funded by Tit. I of the federal Elementary and Secondary Education Act of 1965, and family support programs.
   g.  A minimum of ten hours per week, thirty-four weeks per year, of instruction delivered on the skills and knowledge included in the student learning standards developed for the preschool program.
   h.  Family involvement in the preschool program.
   i.  Provision for ensuring that children receiving care from other child care arrangements can participate in the preschool program with minimal disruption due to transportation and movement from one site to another.
   4.  School district requirements.  The state board shall adopt rules to further define the following requirements for school districts implementing a preschool program pursuant to this chapter:
   a.  Collect documentation of school district and private education partner readiness to meet program requirements. The school district shall submit documentation to the department that demonstrates that the school district contacted all known potential private education partners within the school district, including but not limited to, and only as applicable, accredited nonpublic schools and faith-based preschools, the early childhood Iowa area board, the federal head start program, shared visions and other programs provided under the auspices of the child development coordinating council, and center-based providers of child care services.
   b.  Collaborate with all approved high-quality preschool program sites in the district to better serve children enrolled in the preschool program in the following ways:
   (1)  Extending the day, for children eligible for preschool scholarships, through other state funding and federal funding, including but not limited to funding available through early childhood Iowa area boards, federal head start programs, shared visions and other programs provided under the auspices of the child development coordinating council, licensed child care centers, registered child development homes, early childhood special education programs, services funded by Tit. I of the federal Elementary and Secondary Education Act of 1965, and family support programs.
   (2)  Promoting family involvement through family support programs as well as district programs.
   c.  Participate in data collection and performance measurement processes and reporting, including reporting fall and spring applicable comprehensive statewide child assessment data as specified by the department.
   d.  Identify eligible children through targeted outreach to all families in partnership with the early childhood Iowa area board.
   e.  Collect information regarding and verify family income to implement the sliding tuition scale determined and published by the department in accordance with subsection 5.
   f.  Address professional development for school district preschool teachers in the school district’s professional development plan implemented in accordance with section 284.6.
   g.  Collaborate with private education partners to provide a coordinated system of appropriate professional development for preschool teachers and staff employed in the preschool program.
   h.  Pay only those claims submitted by the school district’s private education partners which are verified by the process set forth in section 279.29.
   5.  Department requirements.  The department shall do the following:
   a.  Implement an application and approval process for school district participation in the preschool program that includes but is not limited to the enrollment requirements provided under subsection 1.
   b.  Track the progress of all children served by a school district preschool program and by the school district’s private education partners and track the children’s performance in elementary and secondary education.
   c.  Implement procedures to monitor the quality of the programming provided under the preschool program at all school district and private education partner sites.
   d.  Determine a statewide comprehensive child assessment to measure child outcomes for all children participating in the preschool program at school districts and private education partner sites.
   e.  Submit an annual report to the governor, the general assembly, the early childhood Iowa state board, and the child development coordinating council.
   (1)  The early childhood Iowa state board and the child development coordinating council shall advise the department regarding collaboration of high-quality preschool programs for eligible children.
   (2)  The early childhood Iowa state board shall promote the preschool program in local communities to increase family awareness of quality preschool programs and scholarship opportunities.
   (3)  The early childhood Iowa area boards shall collaborate with school districts and their private education partners to strengthen preschool quality.
   f.  Develop a statewide list of approved school district and private education partner preschool programs and publish the list on its website. The list shall include information about preschool scholarships and the sliding tuition scale in addition to other information for families.
   g.  Develop and review annually a sliding tuition scale for purposes of granting preschool program scholarships to families whose incomes are at or below three hundred percent of the federal poverty level as defined by the most recently revised poverty income guidelines published by the United States department of health and human services.
   Sec. 12.  NEW SECTION.  256J.4  Funding provisions —— enrollment.
   1.  General.
   a.  State funding provided for preschool scholarships shall be allocated to school districts for each school year based upon the amount appropriated and the funding formula set forth in section 256J.5.
   b.  Except as otherwise provided in chapter 298A, a school district approved to participate in the preschool program may authorize expenditures for the school district’s preschool programming from any of the revenue sources available to the district from the sources listed in chapter 298A, provided the expenditures are within the uses permitted for the revenue source. In addition, the use of the revenue source for preschool programming must have been approved prior to any expenditure from the revenue source for the school district’s preschool program.
   c.  Funding provided for the preschool program pursuant to this chapter is intended to supplement, not supplant, existing public funding for preschool programming.
   d.  Preschool scholarship funding shall not be commingled with the other state aid payments made under section 257.16 to a school district and shall be accounted for by the school district separately from the other state aid payments. Preschool scholarship payments made to school districts are miscellaneous income for purposes of chapter 257. A school district shall maintain a separate listing within its budget for preschool scholarship payments received and expenditures made. A school district shall certify to the department that preschool scholarship funding received by the school district was used to supplement, not supplant, moneys otherwise received and used by the school district for preschool programming.
   e.  Preschool scholarship funding shall not be used for the costs of constructing a facility in connection with a school district or private education partner preschool program.
   f.  Preschool scholarship funding received by a school district or private education partner may be used in conjunction with funding from family-paid tuition to support the school district or private education partner in providing the preschool program. Not more than five percent of the scholarship funding received annually by a school district shall be used for the costs of supervising the program.
   2.  Eligible student enrollment.
   a.  To be included as an eligible student in the preschool enrollment count by a school district, a child shall meet the requirements of section 256J.3, subsection 1, and shall be enrolled in and attending a preschool program implemented by a school district or a school district’s private education partner.
   b.  The enrollment count for the preschool program shall include all eligible children who are enrolled in and attending a preschool program implemented by a school district and the school district’s private education partners shall be collected by the school district on the date prescribed in section 257.6 and shall be certified to the department by the school district by October 15.
   Sec. 13.  NEW SECTION.  256J.5  State funding allocation —— expenditure limitation.
   1.  State funding.
   a.  Allocation formula.  For each fiscal year in which moneys are appropriated by the general assembly for purposes of the preschool program for four-year-old children, preschool scholarship funding shall be allocated to approved school districts on a per pupil basis calculated on the proportion that the number of the approved school district’s first grade children who are eligible for free or reduced price meals under the federal Healthy, Hungry-Free Kids Act of 2010, Pub. L. No. 111-296, multiplied by the average of the previous three years of certified kindergarten enrollment, bears to the sum of the number of first grade children in all approved school districts who are eligible for free or reduced price meals under the federal Healthy, Hungry-Free Kids Act of 2010, Pub. L. No. 111-296, multiplied by the average of the previous three years of certified kindergarten enrollment in all approved school districts in the state for the base year.
   b.  Redistribution of state funding.  Based on the October 1 certified preschool enrollment count determined pursuant to section 256J.4, subsection 2, the department shall evaluate the needs of approved school districts and approved private education partners and shall take action to redistribute unused state funding as appropriate.
   c.  Limited purpose.  State funds provided for purposes of this chapter shall not be expended for any purpose not expressly authorized in this chapter or in administrative rules adopted to administer this chapter.
   2.  Program sites —— conditional allocation.  A school district shall not receive preschool scholarship funding without school district or private education partner preschool program sites.
   3.  Program continuation subject to approval.  For subsequent budget years, continuation of a school district’s participation in the preschool program is subject to the approval of the department based upon the school district’s compliance with accountability provisions and the department’s on-site review of the school district’s implementation of the preschool program.
   4.  Insufficient funding.  If the amount appropriated annually for purposes of this section is not sufficient to pay the total allocation to approved school districts, the allocation shall be based on the proportion that the total allocation for each approved school district bears to the sum of the total allocations to all approved school districts.
   5.  Payments to private education partners.  Reimbursements shall be provided to private education partners by approved school districts on a monthly basis, beginning with the month in which the school district receives payment under subsection 1, paragraph “a”, subparagraph (1), and ending in July, upon submission and verification of actual instructional costs incurred in the school year.
   6.  Department administration and oversight.  Except as otherwise provided by law for a fiscal year, of the amount appropriated by the general assembly for a fiscal year for purposes of this chapter, the department may use an amount sufficient to fund up to four full-time equivalent positions which shall be in addition to the number of positions authorized for the department for the fiscal year to provide administration and oversight of the preschool program. Oversight shall include but not be limited to data collection requirements, maintenance of website listings of high-quality school district and private education partners providing preschool programs, and assessment results.
   7.  Open enrollment not applicable.  Section 282.18 shall not apply to preschool programs implemented under this chapter. However, approved programs shall be open to all eligible Iowa children, regardless of a child’s district of residence.
   8.  Participation in preschool not good cause.  Participation by a child in an approved preschool program under this chapter does not qualify as “good cause”, as defined in section 282.18, subsection 4, paragraph “b”, for purposes of claiming continuous enrollment in a school district other than the district of residence.
   Sec. 14.  Section 272.2, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  19.  Adopt rules establishing an early childhood certificate of eligibility for individuals who meet the requirements of section 256J.3, subsection 2, paragraph “a”, subparagraph (2), for preschool teachers. The rules for obtaining such a certificate shall require that an applicant successfully complete twelve hours of coursework from an accredited institution of higher education in early childhood education, child development, elementary education, or early childhood special education, and this coursework shall encompass child development and learning of children from birth through kindergarten; family and community relationships; observing, documenting, and assessing young children; teaching and learning; and professional practices and development.
EXPLANATION
   This bill establishes a preschool scholarship program for four-year-old children in new Code chapter 256J. The bill also repeals the statewide voluntary preschool program for four-year-old children in Code chapter 256C effective July 1, 2011, along with the associated school aid funding provisions.
   The bill is organized in two divisions. Division I provides for the repeal of the statewide voluntary preschool program and makes conforming changes.
   Division II establishes a preschool program for four-year-old children in the department of education to provide an opportunity for all eligible children, including economically disadvantaged children, to enter school ready to learn. The purpose of the preschool scholarship program shall be to provide scholarships to pay for eligible four-year-old children to attend high-quality preschool provided by school districts or private education partners.
   RULES. The state board of education is directed to adopt rules to implement the Code chapter and may adopt emergency rules as necessary to implement the Code chapter.
   ELIGIBLE CHILDREN. A child who is a resident of Iowa and is four years of age on or before September 15 of a school year is eligible to enroll, based on order of registration, in a preschool program and may be eligible for a preschool scholarship. The scholarship amount is based upon the most current sliding tuition scale determined and published by the department. A school district approved to participate in the preschool program may enroll a younger child in the preschool program if space is available; however, the child shall not be counted in the preschool enrollment count for preschool scholarship funding purposes.
   A family may choose to enroll the family’s four-year-old child in an approved school district program or a preschool program implemented by a private education partner. Families must complete all enrollment requirements, including but not limited to income verification.
   A school district or a private education partner of the school district may charge tuition for children participating in the program, but shall not charge more for tuition than the amount determined and published by the department. All families enrolling eligible children are required to pay tuition based on income and the most current sliding tuition scale determined and published by the department.
   TEACHER REQUIREMENTS. An individual serving as a preschool teacher in the program shall be employed by or under contract with the approved school district or by a private education partner located within the approved school district’s boundaries and shall either be a licensed teacher who meets the requirements of the student achievement and teacher quality program; or shall possess, or be working toward obtaining within two years of starting employment as a preschool teacher, an early childhood certificate of eligibility issued under Code chapter 272, and either hold a bachelor’s or graduate degree from an accredited college or university or hold an associate of arts degree and be working toward obtaining a bachelor’s degree within three years. The provision relating to the associate degree, however, is repealed August 31, 2014.
   EARLY CHILDHOOD CERTIFICATE OF ELIGIBILITY RULE REQUIREMENTS. The bill requires the board of educational examiners to adopt rules establishing an early childhood certificate of eligibility. The rules shall require that an applicant successfully complete 12 hours of coursework from an accredited institution of higher education in early childhood education, child development, elementary education, or early childhood special education, and this coursework shall encompass child development and learning of children from birth through kindergarten; family and community relationships; observing, documenting, and assessing young children; teaching and learning; and professional practices and development.
   Preschool teachers in an approved preschool program must collaborate with other agencies, organizations, and boards in the community to further the program’s capacity to meet the diverse needs of the children and the families of the children, such as needs for early care, health, and human services. The approved preschool program shall work to maintain relationships with each child’s family in order to enhance the child’s development in all settings by collaborating with providers of parent education and family support opportunities.
   PROGRAM REQUIREMENTS —— PROGRAM APPROVAL. The state board must adopt rules to further define the preschool program requirements that are listed in the bill, which shall be used to determine whether or not a local program implemented by a school district or private education partner is approved.
   SCHOOL DISTRICT REQUIREMENTS. School districts, under rules adopted by the state board, shall collect documentation of school district and private education partner readiness to meet program requirements, submit documentation to the department that demonstrates that the school district contacted all known private education partners within the school district, collaborate with all approved high-quality preschool program sites in the district to better serve children enrolled in the preschool program by extending the day through other state funding and federal funding and promoting family involvement through family support programs as well as district programs, participate in data collection and performance measurement processes and reporting, identify eligible children through targeted outreach to all families in partnership with the early childhood Iowa area board, collect information regarding and verify family income to implement the sliding tuition scale, address professional development for school district preschool teachers in the school district’s professional development plan, collaborate with private education partners to provide a coordinated system of appropriate professional development for preschool teachers and staff, and pay only verified claims submitted by private education partners.
   DEPARTMENT REQUIREMENTS. The department is required to implement an application and approval process for school district participation in the program; track the progress of children in the program and their performance in elementary and secondary education; implement procedures to monitor the quality of the programming at all program sites; determine a statewide comprehensive child assessment to measure child outcomes at all sites; submit an annual report to the governor, the general assembly, the early childhood Iowa state board, and the child development coordinating council; develop a statewide list of approved preschool programs and publish the list on its website; and develop and review annually a sliding tuition scale for purposes of granting preschool program scholarships to families whose incomes are at or below 300 percent of the federal poverty level.
   The early childhood Iowa state board and the child development coordinating council must advise the department regarding collaboration of high-quality preschool programs for eligible children; the early childhood Iowa state board must promote the preschool program in local community areas to increase family awareness of quality preschool programs and scholarship opportunities; and the early childhood Iowa area boards shall collaborate with school districts and their private education partners to strengthen preschool quality.
   FUNDING PROVISIONS. State funding provided for preschool scholarships shall be allocated to school districts based upon the amount appropriated and the funding formula set forth in the bill.
   Except as otherwise provided in statute, a school district may authorize expenditures for its preschool programming from any of the revenue sources available to the district from the sources listed in Code chapter 298A, which includes the physical plant and equipment levy fund, the student nutrition fund, and the capital projects fund, among other funds. However, preschool scholarship funding shall not be used for the costs of constructing a facility in connection with a school district or private education partner preschool program.
   Not more than 5 percent of the scholarship funding received annually by a school district shall be used for the costs of supervising the program.
   The enrollment count for the preschool program shall include all eligible children who are enrolled in and attending a preschool program implemented by a school district and the private education partners on October 1 or the first Monday in October if October 1 falls on a Saturday or Sunday. The school district must collect the counts and certify the counts to the department by October 15.
   STATE FUNDING —— ALLOCATION AND REDISTRIBUTION. For each fiscal year in which the general assembly appropriates moneys for purposes of the preschool program for four-year-old children, scholarship funding shall be allocated to approved school districts on a per pupil basis calculated on the proportion that the number of the school district’s first grade children who are eligible for free or reduced price meals, multiplied by the average of the previous three years of certified kindergarten enrollment, bears to the sum of the number of first grade children in all approved school districts who are eligible for free or reduced price meals, multiplied by the average of the previous three years of certified kindergarten enrollment in all approved school districts in the state for the base year.
   Based on the October 1 certified preschool count, the department shall evaluate the needs of approved school districts and approved private education partners and shall take action to redistribute unused state funding as appropriate.
   No district shall receive preschool scholarship payments without school district or private education partner preschool program sites.
   For subsequent budget years, continuation of a school district’s participation in the preschool program is subject to the approval of the department based upon the school district’s compliance with accountability provisions and the department’s on-site review of the school district’s implementation of the preschool program.
   State funds provided for the preschool scholarship program shall not be expended for any purpose not expressly authorized by statute or administrative rule.
   INSUFFICIENT FUNDING. If funds appropriated by the general assembly are not sufficient to pay the total allocation to eligible school districts, the allocation shall be based on the proportion that the total allocation for each school district bears to the sum of the total allocations to all school districts.
   PAYMENTS TO PRIVATE EDUCATION PARTNERS. Reimbursements shall be provided to private education partners by approved school districts on a monthly basis upon submission and verification of actual instructional costs incurred in the fiscal year.
   DEPARTMENT ADMINISTRATION AND OVERSIGHT. Of the amount appropriated for purposes of Code chapter 256J for a fiscal year, the department is authorized to use an amount sufficient to fund up to four full-time equivalent positions which shall be in addition to the number of positions authorized for the department for the fiscal year to provide administration and oversight of the preschool program.
   OPEN ENROLLMENT NOT APPLICABLE. Code section 282.18, relating to open enrollment, shall not apply to preschool programs. However, approved programs shall be open to all eligible Iowa children, regardless of a child’s district of residence.
   PARTICIPATION IN PRESCHOOL NOT GOOD CAUSE. Participation by a child in an approved preschool program does not qualify as “good cause”, for purposes of claiming continuous enrollment in a school district other than the district of residence.