S.F. 2050 Section 1. Section 256B.2, subsections 4 and 5, Code 2014, 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 area education agency, private agency, or 25 other 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 2014, 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 and 32 programs as provided in section 273.1 , this section , sections 33 273.3 to 273.9 , and chapter 256B to the pupils enrolled in 34 public or nonpublic schools located within its boundaries which 35 -1- LSB 5240XS (3) 85 kh/sc 1/ 6

S.F. 2050 are on the list of accredited schools pursuant to section 1 256.11 . The programs and services provided shall be at least 2 commensurate with programs and services existing on July 1, 3 1974. The programs and services provided to pupils enrolled 4 in nonpublic schools shall be comparable to programs and 5 services provided to pupils enrolled in public schools within 6 constitutional guidelines. 7 4. The Except as provided in section 273.16, the area 8 education agency board shall provide for special education 9 services and media services for the local school districts in 10 the area and shall encourage and assist school districts in the 11 area to establish programs for gifted and talented children. 12 The board shall assist in facilitating interlibrary loans of 13 materials between school districts and other libraries. 14 Sec. 3. Section 273.3, subsections 2 and 12, Code 2014, are 15 amended to read as follows: 16 2. Be authorized to receive and expend money for providing 17 programs and services as provided in sections 273.1 , 273.2 , 18 this section , sections 273.4 to 273.9 , and section 273.16, and 19 chapters 256B and 257 . All costs incurred in providing the 20 programs and services, including administrative costs, shall 21 be paid from funds received pursuant to sections 273.1 , 273.2 , 22 this section , sections 273.4 to 273.9 , and section 273.16, and 23 chapters 256B and 257 . 24 12. Prepare an annual budget estimating income and 25 expenditures for programs and services as provided in sections 26 273.1 , 273.2 , this section , sections 273.4 to 273.9 , and 27 section 273.16, and chapter 256B within the limits of funds 28 provided under section 256B.9 and chapter 257 . The board 29 shall give notice of a public hearing on the proposed budget 30 by publication in an official county newspaper in each county 31 in the territory of the area education agency in which the 32 principal place of business of a school district that is a 33 part of the area education agency is located. The notice 34 shall specify the date, which shall be not later than March 35 -2- LSB 5240XS (3) 85 kh/sc 2/ 6

S.F. 2050 1 of each year, the time, and the location of the public 1 hearing. The proposed budget as approved by the board shall 2 then be submitted to the state board of education, on forms 3 provided by the department, no later than March 15 preceding 4 the next fiscal year for approval. The state board shall 5 review the proposed budget of each area education agency and 6 shall before May 1, either grant approval or return the budget 7 without 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 May 15. The state board shall 10 give final approval only to budgets submitted by area education 11 agencies accredited by the state board or that have been given 12 conditional accreditation by the state board. 13 Sec. 4. Section 273.5, unnumbered paragraph 1, Code 2014, 14 is amended to read as follows: 15 There shall be established a division of special education 16 of the area education agency which shall provide for special 17 education programs and services to the local school districts 18 and to school districts pursuant to section 273.16 . The 19 division of special education shall be headed by a director 20 of special education who meets certification standards of the 21 department of education. The director of special education 22 shall have the responsibility for implementation of state 23 regulations and guidelines relating to special education 24 programs and services. The director of special education shall 25 have the following powers and duties: 26 Sec. 5. Section 273.9, subsection 1, Code 2014, is amended 27 to read as follows: 28 1. School districts shall pay for the programs and services 29 provided through the an area education agency and shall include 30 expenditures for the programs and services in their budgets, in 31 accordance with this section . 32 Sec. 6. NEW SECTION . 273.16 Competitive bidding procedures. 33 1. The board of directors of a school district or the 34 authorities in charge of an accredited nonpublic school may 35 -3- LSB 5240XS (3) 85 kh/sc 3/ 6

S.F. 2050 issue to any area education agency established under this 1 chapter a request for bids and proposals for items and services 2 that an area education agency is required or authorized under 3 this chapter and chapter 256B to provide to a school district 4 or accredited nonpublic school located within its boundaries. 5 An area education agency that enters into a contract pursuant 6 to this section shall meet all of the requirements of this 7 chapter and chapter 256B relating to the provision of the item 8 or service that the area education agency is under contract to 9 provide. 10 2. A school district or accredited nonpublic school shall 11 only enter into a contract with the lowest responsible bidder. 12 3. If a contract entered into pursuant to this section is 13 for special education services for a child requiring special 14 education under chapter 256B, the contract shall be entered 15 into with the area education agency with the lowest responsible 16 bid that also maintains a special education instructional 17 program that is appropriate to meet the child’s educational 18 needs. 19 4. If an area education agency other than the area education 20 agency in which the school district or accredited nonpublic 21 school is located is awarded a contract by a school district 22 or accredited nonpublic school pursuant to this section, 23 the area education agency in which the school district or 24 accredited nonpublic school is located shall be responsible for 25 the payment, on a quarterly basis, of the cost per pupil plus 26 weightings or the actual special education costs, whichever 27 amount is greater, to the area education agency awarded the 28 contract for the duration of the contract. 29 5. Notwithstanding any other provision to the contrary, if 30 a school district or accredited nonpublic school enters into 31 a contract with an area education agency other than the area 32 education agency in which the school district or school is 33 located, the area education agency in which the school district 34 or school is located is not responsible for providing the items 35 -4- LSB 5240XS (3) 85 kh/sc 4/ 6

S.F. 2050 or services that are the subject of the contract to the school 1 district or school. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 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 to a 10 school district or accredited nonpublic school located within 11 its boundaries. An AEA that enters into such a contract shall 12 meet all of the requirements of Code chapter 273 and Code 13 chapter 256B relating to the provision of the item or service 14 that the AEA is under contract to provide. 15 A school district or accredited nonpublic school shall only 16 enter into a contract with the lowest responsible bidder. 17 If such a contract entered into is for special education 18 services for a child requiring special education, the contract 19 shall only be entered into with the lowest responsible bidder 20 that also maintains a special education instructional program 21 that is appropriate to meet the child’s educational needs. 22 If an AEA other than the AEA in which the school district 23 or accredited nonpublic school is located is awarded such a 24 contract, the AEA in which the school district or accredited 25 nonpublic school is located shall be responsible for the 26 payment, on a quarterly basis, of the cost per pupil plus 27 weightings or the actual special education costs incurred in 28 providing appropriate special education, whichever amount is 29 greater, to the AEA awarded the contract for the duration of 30 the contract. 31 If a school district or accredited nonpublic school enters 32 into such a contract with another AEA, the AEA in which the 33 school district or school is located is not responsible for 34 providing the items or services contracted for to the school 35 -5- LSB 5240XS (3) 85 kh/sc 5/ 6