H.F. 2182 Section 1. Section 257.9, subsection 6, Code 2022, is 1 amended to read as follows: 2 6. Teacher salary supplement state cost per pupil. For the 3 budget year beginning July 1, 2009, for the teacher salary 4 supplement state cost per pupil, the department of management 5 shall add together the teacher compensation allocation made 6 to each district for the fiscal year beginning July 1, 2008, 7 pursuant to section 284.13, subsection 1 , paragraph “h” , Code 8 2009, and the phase II allocation made to each district for 9 the fiscal year beginning July 1, 2008, pursuant to section 10 294A.9, Code 2009 , and divide that sum by the statewide total 11 budget enrollment for the fiscal year beginning July 1, 2009. 12 The teacher salary supplement state cost per pupil for the 13 budget year beginning July 1, 2010, and succeeding budget years 14 beginning before July 1, 2023 , shall be the amount calculated 15 by the department of management under this subsection for the 16 base year plus a supplemental state aid amount that is equal 17 to the teacher salary supplement categorical state percent of 18 growth, pursuant to section 257.8, subsection 2 , for the budget 19 year, multiplied by the amount calculated by the department 20 of management under this subsection for the base year. The 21 teacher salary supplement state cost per pupil for the budget 22 year beginning July 1, 2023, shall be the amount calculated 23 by the department of management under this subsection for the 24 base year plus a supplemental state aid amount that is equal 25 to the teacher salary supplement categorical state percent of 26 growth, pursuant to section 257.8, subsection 2, for the budget 27 year, multiplied by the amount calculated by the department 28 of management under this subsection for the base year, plus 29 the quotient of the difference between the sum of the total 30 approved budgets for all area education agencies excluding 31 federal moneys for the fiscal year beginning July 1, 2022, and 32 the sum of the total approved budgets for all area education 33 agencies excluding federal moneys for the fiscal year beginning 34 July 1, 2023, divided by the statewide total budget enrollment 35 -1- LSB 5233YH (3) 89 jda/jh 1/ 6

H.F. 2182 for the budget year. The teacher salary supplement state 1 cost per pupil for the budget year beginning July 1, 2024, 2 and succeeding budget years, shall be the amount calculated 3 by the department of management under this subsection for the 4 base year plus a supplemental state aid amount that is equal 5 to the teacher salary supplement categorical state percent of 6 growth, pursuant to section 257.8, subsection 2, for the budget 7 year, multiplied by the amount calculated by the department of 8 management under this subsection for the base year. 9 Sec. 2. Section 257.10, subsection 9, paragraph a, Code 10 2022, is amended to read as follows: 11 a. For the budget year beginning July 1, 2009, the 12 department of management shall add together the teacher 13 compensation allocation made to each district for the fiscal 14 year beginning July 1, 2008, pursuant to section 284.13, 15 subsection 1 , paragraph “h” , Code 2009, and the phase II 16 allocation made to each district for the fiscal year beginning 17 July 1, 2008, pursuant to section 294A.9, Code 2009 , and divide 18 that sum by the district’s budget enrollment in the fiscal 19 year beginning July 1, 2009, to determine the teacher salary 20 supplement district cost per pupil. For the budget year 21 beginning July 1, 2010, and succeeding budget years beginning 22 before July 1, 2023 , the teacher salary supplement district 23 cost per pupil for each school district for a budget year 24 is the teacher salary supplement program district cost per 25 pupil for the base year plus the teacher salary supplement 26 supplemental state aid amount for the budget year. For 27 the budget year beginning July 1, 2023, the teacher salary 28 supplement district cost per pupil for each school district 29 for a budget year is the teacher salary supplement program 30 district cost per pupil for the base year plus the teacher 31 salary supplement supplemental state aid amount for the budget 32 year plus the quotient of the difference between the sum of 33 the total approved budgets for all area education agencies 34 excluding federal moneys for the fiscal year beginning July 1, 35 -2- LSB 5233YH (3) 89 jda/jh 2/ 6

H.F. 2182 2022, and the sum of the total approved budgets for all area 1 education agencies excluding federal moneys for the fiscal year 2 beginning July 1, 2023, divided by the statewide total budget 3 enrollment for the budget year. For the budget year beginning 4 July 1, 2024, and succeeding budget years, the teacher salary 5 supplement district cost per pupil for each school district for 6 a budget year is the teacher salary supplement program district 7 cost per pupil for the base year plus the teacher salary 8 supplement supplemental state aid amount for the budget year. 9 Sec. 3. Section 273.3, Code 2022, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 26. Allow any person employed by the area 12 education agency who holds a license, certificate, statement 13 of recognition, or authorization other than a coaching 14 authorization, issued by the board of educational examiners 15 under chapter 272, to do all of the following: 16 a. Live outside the boundaries of the area education agency. 17 b. Provide educational services and programs that meet the 18 requirements established by rule pursuant to section 256.7, 19 subsection 32, paragraph “c” , to students primarily over the 20 internet, but only when such services and programs can be 21 provided effectively over the internet. 22 Sec. 4. Section 273.23, subsection 1, Code 2022, is amended 23 to read as follows: 24 1. A petition filed under section 273.21 or a reorganization 25 plan submitted in compliance with section 273.21A shall state 26 the number of directors on the initial board which shall be 27 either seven or nine directors. The petition or plan shall 28 specify the number of directors to be retained from each area, 29 and those numbers shall be proportionate to the populations 30 of the agencies. If the proportionate balance of directors 31 among the affected agencies specified in the petition or plan 32 is affected by school districts petitioning to be excluded 33 from the reorganization, or if the proposal specified in the 34 plan does not comply with the requirement for proportionate 35 -3- LSB 5233YH (3) 89 jda/jh 3/ 6

H.F. 2182 representation, the state board shall modify the proposal. 1 However, all area education agencies affected shall retain at 2 least one member. 3 Sec. 5. NEW SECTION . 273.21A Consolidation of area 4 education agencies. 5 On and after July 1, 2023, the number of area education 6 agencies shall not exceed four. Area education agencies shall 7 reorganize as necessary to implement this requirement. Area 8 education agencies engaging in such reorganization shall be 9 contiguous. Sections 273.22 and 273.23 shall apply to such 10 reorganizations. 11 Sec. 6. IMPLEMENTATION. Area education agencies engaging 12 in initial reorganization pursuant to section 273.21A, as 13 enacted by this Act, shall complete the procedures described 14 in section 273.21, subsection 3, paragraphs “a” through “g”. 15 However, reorganization plans shall be submitted to the state 16 board of education no later than January 1, 2023. The state 17 board shall review a reorganization plan and shall, prior to 18 March 15, 2023, either approve the plan as submitted, approve 19 the plan contingent upon compliance with the state board’s 20 recommendations, or disapprove the plan. A contingently 21 approved plan shall be resubmitted with modifications to 22 the department of education not later than May 1, 2023. If 23 one or more area education agencies do not timely submit a 24 reorganization plan, the department shall, in consultation with 25 such agencies, prepare and approve a reorganization plan for 26 such agencies. An approved plan shall take effect on July 1, 27 2023. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to area education agencies, including 32 consolidating the area education agencies, modifying the 33 teacher salary supplement state cost per pupil calculation, and 34 modifying the employment terms of certain specified employees 35 -4- LSB 5233YH (3) 89 jda/jh 4/ 6

H.F. 2182 of area education agencies. 1 Current law establishes a maximum of 15 area education 2 agencies throughout the state. There are currently nine area 3 education agencies in the state. Area education agencies 4 provide means of identifying and serving children who require 5 special education and provide for media services and other 6 programs for pupils in grades kindergarten through 12 and 7 children requiring special education. The bill provides 8 that the number of area education agencies shall not exceed 9 four on and after July 1, 2023. The bill requires area 10 education agencies to reorganize as necessary to implement 11 this requirement and specifies that area education agencies 12 engaging in such reorganization shall be contiguous. The bill 13 provides that Code sections 273.22 and 273.23, relating to the 14 terms of employment of area education agency employees and the 15 organization of initial area education agency boards, apply to 16 such reorganizations. The bill provides a timeline for the 17 implementation of reorganization of area education agencies by 18 July 1, 2023. 19 Under current law, the teacher salary supplement state cost 20 per pupil is the teacher salary supplement state cost per 21 pupil for the base year plus a supplemental state aid amount 22 that is equal to the categorical state percent of growth for 23 the budget year, multiplied by the teacher salary supplement 24 state cost per pupil for the base year. The bill modifies the 25 calculation of the teacher salary supplement state cost per 26 pupil for the budget year beginning July 1, 2023, by adding to 27 the existing amount the difference between the sum of the total 28 approved budgets for all area education agencies excluding 29 federal moneys for the fiscal year beginning July 1, 2022, and 30 such budget amount for the fiscal year beginning July 1, 2023, 31 divided by the statewide total budget enrollment for the budget 32 year. 33 The bill then, for budget years beginning on or after 34 July 1, 2024, resumes the calculation of the teacher salary 35 -5- LSB 5233YH (3) 89 jda/jh 5/ 6

H.F. 2182 supplement state cost per pupil in the manner the amount was 1 calculated previously. The bill also adjusts the calculation 2 of the teacher salary supplement district cost per pupil in a 3 similar manner for the budget year beginning July 1, 2023, and 4 subsequent budget years. 5 The bill requires the boards of directors of area 6 education agencies to allow any person employed by the area 7 education agency who holds a license, certificate, statement 8 of recognition, or authorization other than a coaching 9 authorization, issued by the board of educational examiners 10 under Code chapter 272, to live outside the boundaries of the 11 area education agency and provide educational services and 12 programs meeting certain specified requirements to students 13 primarily over the internet, but only when such services and 14 programs can be provided effectively over the internet. 15 -6- LSB 5233YH (3) 89 jda/jh 6/ 6