HF 255 (LSB 1825YH (4) 85)

HOUSE FILE 255

BY  WINCKLER, KRESSIG, KAJTAZOVIC, WOLFE, BEARINGER, KEARNS, RUFF, THOMAS, THEDE, ABDUL-SAMAD, ANDERSON, WESSEL-KROESCHELL, LENSING, HANSON, T. TAYLOR, and DAWSON

A BILL FOR

An Act relating to direct and indirect costs under the statewide preschool program for four-year-old children and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 256C.4, subsection 1, paragraphs g and h, Code 2013, are amended to read as follows:
   g.  For the fiscal year beginning July 1, 2011, and each succeeding fiscal year, of
 
Of the amount of preschool foundation aid received by a school district for a fiscal year in accordance with section 257.16, not more than five percent may be used by the school district for
 
the school district’s costs of administering the district’s approved local program. 
   h.  For the fiscal year beginning July 1, 2012, and each succeeding fiscal year, of the amount of preschool foundation aid received by a school district for a fiscal year in accordance with section 257.16, not less than ninety-five percent of the per pupil amount shall be passed through to
 
If the students enrolled in a school district’s approved local program receive the program’s preschool instruction through or in conjunction with services provided to the students by a community-based provider for each pupil enrolled in the district’s approved local program, the department’s administrative rules and other requirements applicable to the provider and the school district’s agreement with the provider shall allow payment for the provider’s direct and indirect costs relating to the students. For the fiscal year beginning July 1, 2011, and each succeeding fiscal year, not more than five percent of the amount of preschool foundation aid passed through to a community-based provider may be used by the community-based provider for administrative costs.

If the community-based provider is not subject to an annual audit in accordance with generally accepted accounting principles, the provider shall utilize processes which shall be recommended by the auditor of state to identify the provider’s direct and indirect costs attributable to the students enrolled in the program.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill relates to direct and indirect costs under the statewide preschool program for four-year-old children.
   The bill amends current law in Code section 256C.4 that a limitation on administrative costs applies to the school district’s costs. A requirement to pass through a percentage of the preschool foundation aid to community providers is modified by the bill. If the students enrolled in a school district’s approved local preschool program receive the program’s preschool instruction through or in conjunction with the services provided to the student by a community-based provider, the department’s administrative rules and other requirements applicable to the provider and the school district’s agreement with the provider are required to allow payment for the provider’s direct and indirect costs relating to the students.
   If the community-based provider is not subject to an annual audit in accordance with generally accepted accounting principles, the provider is required to utilize processes recommended by the auditor of state to identify the provider’s direct and indirect costs attributable to the students enrolled in the program.
   The bill takes effect upon enactment.