HSB 542 (LSB 5189XL (14) 90)

SENATE/HOUSE FILE _____

BY  (PROPOSED GOVERNOR BILL)

A BILL FOR

An Act relating to education, including modifying provisions related to the number of area education agencies in this state, the duties and powers of area education agencies, area education agency boards of directors, the department of administrative services, the director of the department of education, the division of special education within the department of education, the services provided by area education agencies, area education agency funding, the calculation of the teacher salary supplement district cost per pupil, and minimum teacher salaries, and including transition, effective date, and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
AREA EDUCATION AGENCIES —— GENERAL PROVISIONS

    Section 1.  Section 273.1, Code 2024, is amended to read as follows:
   273.1  Intent.
   It is the intent of the general assembly to provide an effective, efficient, and economical means of identifying and serving children from under five years of age through grade twelve who require special education and any other children requiring special education as defined in section 256B.2; to provide for media services and other programs and services for pupils in grades kindergarten through twelve and children requiring special education as defined in section 256B.2; to provide a method of financing the programs and services; and to avoid a duplication of programs and services provided by any other school corporation in the state; and to provide services to school districts under a contract with those school districts; to improve student achievement; and to close student achievement gaps.
    Sec. 2.  Section 273.2, Code 2024, is amended to read as follows:
   273.2  Area education agencies established —— powers —— services and programs.
   1.  There are established throughout the state fifteen not more than nine area education agencies, as determined by the director of the department of education, each of which is governed by an area education agency board of directors under the general supervision of the director, except as otherwise provided in this chapter.  Each area education agency shall have an area education agency board of directors that shall serve in an advisory capacity. The boundaries of an area education agency shall not divide a school district. The director of the department of education shall change boundaries of area education agencies to take into account mergers of local school districts and changes in boundaries of local school districts, when necessary to maintain the policy of this chapter that a local school district shall not be a part of more than one area education agency.
   2.  An area education agency established under this chapter is a body politic as a school corporation for the purpose of exercising powers granted under this chapter, and may sue and be sued. An area education agency may shall not hold real property and execute purchase agreements within two years of a disaster as defined in section 29C.2, subsection 4, and shall not enter into lease-purchase agreements pursuant to section 273.3, subsection 7, and if the lease-purchase agreement exceeds ten years or the purchase price of the property to be acquired pursuant to a purchase or lease-purchase agreement exceeds the amount stated in section 26.3, subsection 1, the area education agency shall conduct a public hearing on the proposed purchase or lease-purchase agreement and receive approval from the area education agency board of directors and the state board of education or its designee before entering into the agreement.  The department of administrative services is responsible for providing real property and facilities to the area education agencies, as determined in consultation with the director of the department of education, pursuant to a management fee agreement. The area education agencies are responsible for the general maintenance and the grounds of the real property and facilities provided by the department of administrative services.
   3.  The area education agency board agencies shall furnish educational services and programs as provided in  section 273.1, this section, sections 273.3 through 273.8, 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.  The area education agency board agencies 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 that request to receive such services, including by entering into agreements with the area education agency. The board shall assist in facilitating interlibrary loans of materials between school districts and other libraries.
   5.  The area education agency board agencies may provide for the following programs and services to local school districts, and at the request of local school districts to providers of child development services who have received grants under chapter 256A from the child development coordinating council, within the limits of funds available:
   a.  In-service training programs for employees of school districts and area education agencies, provided at the time programs and services are established they do not duplicate programs and services available in that area from the universities under the state board of regents and from other universities and four-year institutions of higher education in Iowa. The in-service training programs shall include but are not limited to regular training concerning mental or emotional disorders which may afflict affect children and the impact children with such disorders have upon their families.
   b.  Educational data processing pursuant to section 256.9, subsection 11.
   c.  Research, demonstration projects and models, and educational planning for children under five years of age through grade twelve and children requiring special education as defined in section 256B.2 as approved by the state board of education.
   d.  Auxiliary services for nonpublic school pupils as provided in section 256.12. However, if auxiliary services are provided their funding shall be based on the type of service provided.
   e.  Other educational programs and services for children under five years through grade twelve and children requiring special education as defined in section 256B.2 and for employees of school districts and area education agencies as approved by the state board of education.
   6.  The board of directors of an area education agency shall not establish programs and services which duplicate programs and services which are or may be provided by the community colleges under the provisions of chapter 260C. An area education agency shall contract, whenever practicable, with other school corporations for the use of personnel, buildings, facilities, supplies, equipment, programs, and services.
   7.  The board of an Subject to the approval of the director of the department of education, an area education agency or a consortium of two or more area education agencies shall contract with one or more licensed dietitians for the support of nutritional provisions in individual education plans developed in accordance with chapter 256B and to provide information to support school nutrition coordinators.
   8.  The area education agency board shall collaborate with the department of education to provide a statewide infrastructure for educational data to create cost efficiencies, provide storage and disaster mitigation, and improve interconnectivity between schools and school districts. In addition, the area education agency boards shall work with the department to provide systemwide coordination in the implementation of the statewide longitudinal data system consistent with the federal American Recovery and Reinvestment Act of 2009. The area education agencies shall provide support to school districts’ information technology infrastructure that is consistent with the statewide infrastructure for the educational data collaborative.
   9.  The area education agency boards shall jointly develop a three-year statewide strategic plan that supports goals adopted by the state board of education pursuant to section 256.7, subsection 4, and the accreditation standards established pursuant to section 256.11; establish performance goals; and clearly identify the statewide efforts to improve student learning and create efficiencies in management operations for area education agencies and school districts. The statewide strategic plan shall be approved by the state board of education. The area education agency boards shall jointly provide the state board with annual updates on the performance measures.
   10.  8.  The Subject to the approval of the director of the department of education, an area education agency board is encouraged to may employ a child welfare liaison to provide services and guidance to local school districts to facilitate the efficient and effective transfer and enrollment of a child adjudicated under chapter 232 or receiving foster care services to another school district, including but not limited to guidance relating to the transfer of credit earned for coursework taken by the student, enrollment transition planning, facilitating information sharing between education and child welfare agencies, and developing systems designed to ameliorate the transition issues faced by a child adjudicated under chapter 232 or receiving foster care services who is transferring to and enrolling in a school district.
   11.  9.  Subject to an appropriation by the general assembly for such purpose, the area education agency board agencies shall, by July 1, 2024, dedicate at least one full-time equivalent position to maintain a dyslexia specialist. The An area education agency board may hire such a specialist or may provide appropriate training to qualify an existing employee as a specialist on dyslexia. The specialist shall provide technical guidance and assistance, including but not limited to professional development, strategies, and materials to school districts and accredited nonpublic schools relating to identification of and instruction for students with characteristics of dyslexia. The specialist shall be highly trained in dyslexia and have a minimum of three years of field experience in screening, identifying, and treating dyslexia and related disorders. In the absence of an appropriation, each area education agency board is encouraged to employ a highly qualified dyslexia specialist.
   10.  a.  An area education agency may establish a plan, in accordance with section 403(b) of the Internal Revenue Code, as defined in section 422.3, for employees, which plan shall consist of one or more investment contracts, on a group or individual basis, acquired from a company, or a salesperson for that company, that is authorized to do business in this state.
   b.  The selection of investment contracts to be included within the plan established by the area education agency shall be made either pursuant to a competitive bidding process conducted by the area education agency, in coordination with employee organizations representing employees eligible to participate in the plan, or pursuant to an agreement with the department of administrative services to make available investment contracts included in a deferred compensation or similar plan established by the department of administrative services pursuant to section 8A.438, which plan meets the requirements of this subsection. The determination of whether to select investment contracts for the plan pursuant to a competitive bidding process or by agreement with the department of administrative services shall be made by agreement between the area education agency and the employee organizations representing employees eligible to participate in the plan.
   c.  The area education agency may make elective deferrals in accordance with the plan as authorized by an eligible employee for the purpose of making contributions to the investment contract on behalf of the employee. The deferrals shall be made in the manner which will qualify contributions to the investment contract for the benefits under section 403(b) of the Internal Revenue Code, as defined in section 422.3. In addition, the area education agency may make nonelective employer contributions to the plan.
   d.  As used in this subsection, unless the context otherwise requires, “investment contract” shall mean a custodial account utilizing mutual funds or an annuity contract which meets the requirements of section 403(b) of the Internal Revenue Code, as defined in section 422.3.
   11.  An area education agency may establish and pay all or any part of the cost of group health insurance plans, nonprofit group medical service plans and group life insurance plans adopted by the area education agency for the benefit of employees of the area education agency, from funds available to the board.
   12.  An area education agency may issue school credit cards allowing area education agency employees to pay for the actual and necessary expenses incurred in the performance of work-related duties.
   13.  An area education agency may purchase equipment as provided in section 279.48.
   14.  By January 15 of each year, the area education agencies shall submit to the department of education the area education agency’s staffing plans and job classifications, including contracted salary, bonus wages and benefits, annuity payments, or any other benefit, for the employees of the area education agency. The director of the department of education shall review the staffing plans and job classifications submitted by the area education agencies and either approve or reject the continuation of each position by March 1 of each year. The area education agencies shall align all job classifications with the job classifications established by the department of administrative services. The area education agencies shall comply with all applicable requirements of 29 U.S.C. ch. 23 and chapter 84C if a reduction in force occurs.
   15.  The area education agencies shall require that, by July 1, 2024, any person employed by the area education agency who holds a license, certificate, statement of recognition, or authorization other than a coaching authorization, issued by the board of educational examiners to complete the Iowa reading research center dyslexia overview module. Such persons employed after July 1, 2024, shall complete the module within one year of the employee’s initial date of hire.
   16.  The area education agency shall collaborate with the department of education to provide a statewide infrastructure for educational data to create cost efficiencies, provide storage and disaster mitigation, and improve interconnectivity between schools and school districts. In addition, the area education agency shall work with the department to provide systemwide coordination in the implementation of the statewide longitudinal data system consistent with the federal American Recovery and Reinvestment Act of 2009.
    Sec. 3.  Section 273.3, Code 2024, is amended to read as follows:
   273.3  Duties and powers of area education agency board —— additional powers of area education agencies.
   The board in carrying out the provisions of section 273.2 shall do all of the following:
   1.  Determine the policies of Advise and consult with the area education agency on policies and procedures for providing programs and services.
   2.  Be authorized to receive and expend money for providing programs and services as provided in sections 273.1, 273.2, this section, sections 273.4 through 273.8, 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, 273.2, this section, sections 273.4 through 273.8, and chapters 256B and 257.
   3.  2.  Provide data and prepare reports as directed by the director of the department of education or the executive director of the area education agency.
   4.  Provide for advisory committees as deemed necessary.
   5.  3.  Be authorized, subject to rules of the state board of education, to provide directly or by contractual arrangement with public or private agencies for special education programs and services, media services, and educational programs and services requested by the local boards of education as provided in this chapter, including but not limited to contracts for the area education agency to provide programs or services to the local school districts and contracts for local school districts, other educational agencies, and public and private agencies to provide programs and services to the local school districts in the area education agency in lieu of the area education agency providing the services. Contracts may be made with public or private agencies located outside the state if the programs and services comply with the rules of the state board. Rules adopted by the state board of education shall be consistent with rules, adopted by the board of educational examiners, relating to licensing of practitioners.
   6.  4.  Area education agencies may Be authorized to cooperate and contract between themselves and with other public agencies to provide special education programs and services, media services, and educational services to schools and children residing within their respective areas. Area education agencies may provide print and nonprint materials to public and private colleges and universities that have teacher education programs approved by the state board of education.
   7.  Be authorized to lease, purchase, or lease-purchase, subject to the approval of the state board of education or its designee and to receive by gift and operate and maintain facilities and buildings necessary to provide authorized programs and services. However, a lease for less than ten years and with an annual cost of less than the amount stated in section 26.3, subsection 1, does not require the approval of the state board. The state board shall not approve a lease, purchase, or lease-purchase until the state board is satisfied by investigation that public school corporations within the area do not have suitable facilities available. A purchase of property that is not a lease-purchase may be made only within two years of a disaster as defined in section 29C.2, subsection 4, and subject to the requirements of this subsection.
   8.  5.  Be authorized, subject to the approval of the director of the department of education, to enter into agreements for the joint use of personnel, buildings, facilities, supplies, and equipment with school corporations as deemed necessary to provide authorized programs and services.
   9.  6.  Be authorized to make application for, accept, and expend state and federal funds that are available for programs of educational benefit approved by the director of the department of education, and cooperate with the department in the manner provided in federal-state plans or department rules in the effectuation and administration of programs approved by the director, or approved by other educational agencies, which agencies have been approved as state educational authorities.
   10.  7.  Be authorized to perform all other acts necessary to carry out the provisions and intent of this chapter.
   11.  8.  Employ personnel to carry out the functions of the area education agency which shall include the employment of an administrator executive director who shall possess a an administrator license and either a teaching license with a special education endorsement or a special education support personnel authorization, issued under chapter 256, subchapter VII, part 3 by the board of educational examiners. The administrator shall be employed pursuant to section 279.20 and sections 279.23, 279.24, and 279.25. The salary for an area education agency administrator executive director shall be established by the board director of the department of education based upon the previous experience and education of the administrator. Section 279.13 applies to the area education agency board and to all teachers employed by the area education agency. Sections 279.23, 279.24, and 279.25 apply to the area education board and to all administrators employed by the area education agency. Section 279.69 applies to the area education agency board and employees of the board, including part-time, substitute, or contract employees, who provide services to a school or school district.
   12.  9.  Prepare an annual budget estimating income and expenditures for programs and services as provided in sections 273.1, 273.2, this section, sections 273.4 through 273.8, and chapter 256B within the limits of funds provided under section 256B.9 and chapter 257. The board executive director shall post notice of a public hearing on submit the proposed budget on the area education agency’s internet site and by publication in the newspaper of general circulation 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 to the director of the department of education for approval not later than March 1 of each year. 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 director of the department of education 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 May 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 May 15. 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.
   13.  10.  Be authorized to pay, out of funds available to the board reasonable annual dues to an Iowa association of school boards. Membership shall be limited to those duly elected members of the area education agency board.
   14.  a.  The board may establish a plan, in accordance with section 403(b) of the Internal Revenue Code, as defined in section 422.3, for employees, which plan shall consist of one or more investment contracts, on a group or individual basis, acquired from a company, or a salesperson for that company, that is authorized to do business in this state.
   b.  The selection of investment contracts to be included within the plan established by the board shall be made either pursuant to a competitive bidding process conducted by the board, in coordination with employee organizations representing employees eligible to participate in the plan, or pursuant to an agreement with the department of administrative services to make available investment contracts included in a deferred compensation or similar plan established by the department pursuant to section 8A.438, which plan meets the requirements of this subsection. The determination of whether to select investment contracts for the plan pursuant to a competitive bidding process or by agreement with the department of administrative services shall be made by agreement between the board and the employee organizations representing employees eligible to participate in the plan.
   c.  The board may make elective deferrals in accordance with the plan as authorized by an eligible employee for the purpose of making contributions to the investment contract on behalf of the employee. The deferrals shall be made in the manner which will qualify contributions to the investment contract for the benefits under section 403(b) of the Internal Revenue Code, as defined in section 422.3. In addition, the board may make nonelective employer contributions to the plan.
   d.  As used in this subsection, unless the context otherwise requires, “investment contract” shall mean a custodial account utilizing mutual funds or an annuity contract which meets the requirements of section 403(b) of the Internal Revenue Code, as defined in section 422.3.
   15.  Be authorized to establish and pay all or any part of the cost of group health insurance plans, nonprofit group medical service plans and group life insurance plans adopted by the board for the benefit of employees of the area education agency, from funds available to the board.
   16.  11.  Meet at least annually with the members of the boards of directors of the merged areas in which the area education agency is located to discuss coordination of programs and services and other matters of mutual interest to the boards.
   17.  Be authorized to issue warrants and anticipatory warrants pursuant to chapter 74. The applicable rate of interest shall be determined pursuant to sections 74A.2, 74A.3, and 74A.7. This subsection shall not be construed to authorize a board to levy a tax.
   18.  Be authorized to issue school credit cards allowing area education agency employees to pay for the actual and necessary expenses incurred in the performance of work-related duties.
   19.  Pursuant to rules adopted by the state board of education, be authorized to charge user fees for certain materials and services that are not required by law or by rules of the state board of education and are specifically requested by a school district or accredited nonpublic school.
   20.  Be authorized to purchase equipment as provided in section 279.48.
   21.  Be authorized to sell, lease, or dispose of, in whole or in part, property belonging to the area education agency. Before the area education agency may sell property belonging to the agency, the board of directors shall comply with the requirements set forth in section 297.22. Before the board of directors of an area education agency may lease property belonging to the agency, the board shall obtain the approval of the director of the department of education.
   22.  12.  Meet annually with the members of the boards of directors of the school districts located within its boundaries if requested by the school district boards.
   23.  By October 1 of each year, submit to the department of education the following information:
   a.  The contracted salary including bonus wages and benefits, annuity payments, or any other benefit for the administrators of the area education agency.
   b.  The contracted salary and benefits and any other expenses related to support for governmental affairs efforts, including expenditures for lobbyists and lobbying activities for the area education agency.
   24.  Be authorized to sell software and support services, professional development programs and materials, online professional development, and online training to entities other than school districts within the state and to school districts and other public agencies located outside of the state. The board may also sell to school districts within this state software and support services, professional development programs and materials, online professional development, and online training which the area education agency is not otherwise required to provide to a school district under this chapter or chapter 256B or 257.
   25.  Require, by July 1, 2024, any person employed by the area education agency who holds a license, certificate, statement of recognition, or authorization other than a coaching authorization, issued by the board of educational examiners under chapter 256, subchapter VII, part 3, to complete the Iowa reading research center dyslexia overview module. Such persons employed after July 1, 2024, shall complete the module within one year of the employee’s initial date of hire.
    Sec. 4.  Section 273.4, Code 2024, is amended to read as follows:
   273.4  Duties of administrator executive director.
   Under direction of the board of directors of the area education agency, the administrator of the area education agency shall director of the department of education, each area education agency shall employ one executive director. The executive director shall be appointed by and serve at the pleasure of the director of the department of education. The executive director shall be responsible for the administration, financial operations, and management of the area education agency, and in addition to other duties, shall do all of the following:
   1.  Cooperate with boards of directors of local school districts of the area education agency in considering and developing plans for the improvement of the educational programs and services in the area education agency.
   2.  When requested, provide such other assistance as possible to school districts of the area education agency for the general improvement of their educational programs and operations.
   3.  Submit program plans each year to the department of education, for approval by the director of the department, to reflect the needs of the area education agency for media services as provided in section 273.6.
   4.  When requested, provide information and prepare reports for the director of the department of education.
   5.  With the approval of the director of the department of education, employ such personnel as are necessary to support the administrative, general education, and special education programs and services of the area education agency.
   6.  With the approval of the administrator of the division of special education within the department of education, contract with public schools, nonpublic schools, and area education agencies, located either within this state or in a contiguous state, for special education programs and services.
    Sec. 5.  Section 273.5, Code 2024, is amended to read as follows:
   273.5  Special Additional duties of the executive director —— special education.
   There shall be established a division of special education of the area education agency which The executive director of each area education agency shall provide for special education programs and services to the local school districts, consistent with state regulations and guidelines related to special education programs and services. 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 executive director of special education shall have the following additional powers and duties:
   1.  Properly identify children requiring special education.
   2.  Insure that each child requiring special education in the area receives an appropriate special education program or service.
   3.  Assign appropriate weights for each child requiring special education programs or services as provided in section 256B.9.
   4.  Supervise special education support personnel.
   5.  Provide each school district within the area served and the department of education with a special education weighted enrollment count, including the additional enrollment because of special education for December 1 of each year.
   6.  Submit to the department of education special education instructional and support program plans and applications, subject to criteria listed in chapter 256B and this chapter, for approval by February 15 of each year for the school year commencing the following July 1.
   7.  Coordinate the special education program within the area served.
    Sec. 6.  Section 273.7A, Code 2024, is amended to read as follows:
   273.7A  Services Special education services to school districts.
   1.  a.  The board of an An area education agency may only provide special education services to school districts located in the area education agency under if the school district requests to receive such services and pursuant to a contract with between the school districts district and the area education agency. These services may include, but are not limited to, superintendency services, personnel services, business management services, specialized maintenance services, and transportation services. In addition, the board of the area education agency may provide for furnishing expensive and specialized equipment for school districts.  The term of the contract between the school district and the area education agency related to the provision of special education services shall not be less than two years. A school district must provide notice to the area education agency and to the department of education indicating that the school district requests to receive special education services from the area education agency not later than September 30 of the school year preceding the school year such services will be provided.
   b.  School districts shall pay to area education agencies the cost of providing the services.
   2.  The board of an An area education agency may also provide services authorized to be performed by area education agencies the director of the department of education to other area education agencies in this state and to provide a method of payment for these services.
    Sec. 7.  Section 273.8, subsection 2, paragraph a, Code 2024, is amended to read as follows:
   a.  Notice of the election shall be published by the executive director of the area education agency administrator not later than September 15 of the odd-numbered year in at least one newspaper of general circulation in the director district. The cost of publication shall be paid by the area education agency.
    Sec. 8.  Section 273.8, subsection 3, Code 2024, is amended to read as follows:
   3.  Director district convention.  If no candidate files with the area education agency secretary by the deadline specified in subsection 2, or a vacancy occurs, or if otherwise required as provided in section 273.23, subsection 3, a director district convention, attended by members of the boards of directors of the local school districts located within the director district, shall be called to elect a board member for that director district. The convention location shall be determined by the executive director of the area education agency administrator. Notice of the time, date, and place of a director district convention shall be published by the executive director of the area education agency administrator in at least one newspaper of general circulation in the director district at least thirty days prior to the day of the convention. The cost of publication shall be paid by the area education agency. A candidate for election to the area education agency board shall file a statement of candidacy with the area education agency secretary at least ten days prior to the date of the director district convention on forms prescribed by the department of education, or nominations may be made at the convention by a delegate from a board of directors of a school district located within the director district. A statement of candidacy shall include the candidate’s name, address, and school district. Delegates to director district conventions shall not be bound by a school board or any school board member to pledge their votes to any candidate prior to the date of the convention.
    Sec. 9.  Section 273.8, subsections 6, 7, and 8, Code 2024, are amended by striking the subsections.
    Sec. 10.  Section 273.9, Code 2024, is amended to read as follows:
   273.9  Funding.
   1.  School districts shall pay for the programs and services provided through the area education agency when the school district requests to receive the programs or services or otherwise agrees to receive the programs or services and shall include expenditures for the programs and services in their budgets, in accordance with this section.
   2.  School When school districts agree to receive special education instructional programs from an area education agency, school districts shall pay the costs of special education instructional programs with the moneys available to the districts for each child requiring special education, by application of the special education weighting plan in section 256B.9. Special education instructional programs shall be provided at the local level if practicable, or otherwise by contractual arrangements with the area education agency board as provided in section 273.3, subsection 5 3, but in each case the total money available through section 256B.9 and chapter 257 because of weighted enrollment for each child requiring special education instruction shall be made available to the district or agency which provides the special education instructional program to the child, subject to adjustments for transportation or other costs which may be paid by the school district in which the child is enrolled. Each district shall cooperate with its area education agency to provide an appropriate special education instructional program for each child who requires special education instruction, as identified and counted within the certification by the area director of special education or as identified by the area executive director of special education the area education agency subsequent to the certification, and shall not provide a special education instructional program to a child who has not been so identified and counted within the certification or identified subsequent to the certification.
   3.  The costs of special education support services provided through the area education agency shall be funded as provided in chapter 257. Special education support services shall not be funded until the program plans submitted by the special education executive directors of each area education agency as required by section 273.5 are modified as necessary and approved by the director of the department of education according to the criteria and limitations of chapters 256B and 257.
   4.  The costs of media services provided through the area education agency shall not be funded until the program plans submitted by the administrators of each area education agency as required by section 273.4 are modified as necessary and approved by the director of the department of education according to the criteria of section 273.6.
   5.  4.  The state board of education shall adopt rules under chapter 17A relating to the approval of program plans under this section.
    Sec. 11.  Section 273.10, subsection 6, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   If the deficiencies in an area education program have not been corrected, the agency board director of the department of education shall take one of the following actions within sixty days from removal of accreditation:
    Sec. 12.  Section 273.10, subsection 6, paragraph b, Code 2024, is amended to read as follows:
   b.  The rules developed by the state board of education for the accreditation process shall include provisions for removal of accreditation, including provisions for proper notice to the administrator executive director of the area education agency, each member of the board of directors of the area education agency, the department of education, and the superintendents and administrators of the schools of the districts served by the area education agency.
    Sec. 13.  Section 273.11, Code 2024, is amended to read as follows:
   273.11  Standards for accrediting area education programs.
   1.  The state board of education, in consultation with the department of education, shall develop standards and rules for the accreditation of area education agencies. Standards shall be general in nature, but at a minimum shall identify requirements addressing the services provided by each division, as well as identifying indicators of quality that will permit area education agencies, school districts, the department of education, and the general public to judge accurately the effectiveness of area education agency services.
   2.  Standards developed shall include, but are not limited to, the following:
   a.  Support for school-community planning, including a means of assessing needs, developing collaborative relationships among community agencies, establishing shared direction, and implementing program plans and reporting progress toward goals for students with disabilities.
   b.  Professional development programs that respond to current needs.
   c.  b.  Support for curriculum development, instruction, and assessment for services that address the areas of reading, language arts, math, and science, using research-based methodologies for students with disabilities.
   d.  Special education compliance and support.
   e.  Management services, including financial reporting and purchasing as requested and funded by local districts.
   f.  Support for instructional media services that supplement and support local district media centers and services.
   c.  Support for schools and school districts in analyzing student achievement data related to the learning environment, comparing data to the external knowledge base, and using that information to guide schools and school districts in setting goals and implementing actions to improve student learning for students with disabilities.
   d.  Support for addressing the diverse learning needs of all children and youths with disabilities who are eligible for special education, including through services that include direct services to students with disabilities.
   e.  Support for schools and school districts to ensure compliance rules adopted by the state board of education related to special education.
   g.  f.  Support for necessary to implement effective instruction for all students with disabilities through school technology planning and staff development for implementing instructional technologies services.
   h.  g.  A program and services evaluation and reporting system related to special education.
   i.  Support for school district libraries in accordance with section 273.2, subsection 4.
   j.  h.  Support for early childhood service coordination for families and children, age birth through three years, to meet health, safety, and learning needs, including service coordination.
    Sec. 14.  Section 273.13, Code 2024, is amended to read as follows:
   273.13  Administrative expenditures.
    The administrative expenditures as a percent of an area education agency’s general fund for a base year shall not exceed five percent. Annually, the board of directors executive director of each area education agency shall certify to the department of education the amounts of the area education agency’s expenditures and its general fund. For the purposes of this section, “base year” means the same as defined in section 257.2, and “administrative expenditures” means expenditures for executive administration.
    Sec. 15.  Section 273.14, Code 2024, is amended to read as follows:
   273.14  Emergency repairs.
   When emergency repairs costing more than the competitive bid threshold in section 26.3, or the adjusted competitive bid threshold established in section 314.1B, subsection 2, are necessary in order to ensure the use of an area education agency facility, the provisions of law with reference to advertising for bids shall not apply within two years of a disaster as defined in section 29C.2, subsection 2, and the area education agency board department of administrative services may contract for such emergency repairs without advertising for bids. However, before such emergency repairs can be made to an area education agency facility, the state board of education or its designee must certify that such emergency repairs are necessary to ensure the use of the area education agency facility.
    Sec. 16.  Section 273.15, subsection 1, Code 2024, is amended to read as follows:
   1.  The board of directors of each area education agency shall appoint an advisory group to make recommendations on policy, programs, and services to the board area education agency. The advisory group shall provide input, feedback, and recommendations to the board regarding projected future needs, and shall provide a review and response to any state-directed study or task force report on area education agency efficiencies or reorganization.
    Sec. 17.  Section 273.15, subsection 5, Code 2024, is amended to read as follows:
   5.  The advisory group shall meet at least twice annually and shall submit its recommendations in a report to the board of directors executive director of the area education agency at least once annually. The report shall be timely submitted to allow for consideration of the recommendations prior to program planning and budgeting for the following fiscal year.
    Sec. 18.  REPEAL.  Sections 273.6, 273.7, and 273.16, Code 2024, are repealed.
    Sec. 19.  TRANSITION PROVISIONS.
   1.  An area education agency shall not transfer any ownership interest existing as of January 1, 2024, that the area education agency has in real property or facilities until such interests are transferred to the department of administrative services pursuant to subsection 2.
   2.  a.  On or before July 1, 2024, all ownership interests that area education agencies have in real property and facilities attached to real property shall be transferred to the department of administrative services. Prior to July 1, 2024, the area education agencies and the area education agency boards of directors shall collaborate with the director of the department of administrative services to arrange for the orderly conveyance of all ownership interests in real property from the area education agencies to the department of administrative services. The department of administrative services shall be responsible for all costs associated with the conveyance of real property pursuant to this paragraph and shall assume all encumbrances attached to such real property.
   b.  Notwithstanding any other provision of law to the contrary, the department of administrative services shall have the authority to dispose of all interests in real property conveyed to the department pursuant to paragraph “a”. Moneys generated by the sale of such interests in real property shall be deposited in the general fund of the state.
   3.  Prior to July 1, 2024, all interests that area education agencies have in real property lease agreements shall be transferred to the department of administrative services.
   4.  a.  On or before May 30, 2024, each area education agency shall submit to the department of education an inventory detailing all media center and professional development equipment and property owned by the area education agency. If the area education agency would like to retain any particular items of media center or professional development equipment or property to support its special education program and services, the area education agency shall include a request to retain such equipment or property in the inventory.
   b.  On or before June 14, 2024, the department of education shall review all inventories and requests submitted pursuant to paragraph “a” and shall provide notice to each area education agency, as applicable, indicating whether the department approves or denies the area education agency’s request to retain media center or professional development equipment or property.
   c.  On or before July 1, 2024, all of the following media center and professional development equipment and property shall be transferred from the area education agency to the department of administrative services:
   (1)  Media center and professional development equipment and property that the area education agency did not request to retain.
   (2)  Media center and professional development equipment and property that the area education agency requested to retain, but that the department denied.
   d.  (1)  The department of administrative services shall transfer to the department for the blind all media center and professional development equipment and property transferred to the department pursuant to paragraph “c” that can be utilized by the commission for the blind to provide library services to persons who are blind and persons with disabilities.
   (2)  The department of administrative services may dispose of media center and professional development equipment and property transferred to the department pursuant to paragraph “c”, with preference being given to lower-performing public schools in this state. Moneys generated from the sale of media center or professional development equipment or property shall be deposited in the general fund of the state.
   5.  On July 1, 2024, the employment of all area education agency administrators employed pursuant to section 273.3, subsection 11, as amended in this division of this Act, is terminated, unless terminated earlier by the director of the department of education who, notwithstanding any other provision of law to the contrary, is authorized to terminate the employment of such area education agency administrators. The changes to chapter 273 constitute just cause for discharge of the area education administrators under section 279.25, and the provisions of section 279.24 shall not apply to the discharge of the area education administrators. The director of the department of education shall appoint an executive director for each area education agency pursuant to section 273.4, as amended in this division of this Act. The director, or the director’s designee, may exercise the authority of an executive director until such appointment is made.
   6.  Notwithstanding the January 15 and March 1 deadlines in section 273.2, subsection 14, as enacted by this division of this Act, for the fiscal year beginning July 1, 2024, and ending June 30, 2025, the area education agencies shall submit the information required under section 273.2, subsection 14, as enacted by this division of this Act, to the department of education on or before June 7, 2024, and the department of education shall review and either approve or reject the continuation of each position by June 30, 2024.
   7.  In employing oversight personnel, the division of special education within the department of education shall give preference to qualified personnel who seek employment with the division of special education because their employment with an area education agency terminated as a result of this division of this Act. Any former employee of an area education agency whose employment with an area education agency terminated as a result of this division of this Act and who is employed by the division of special education no later than August 1, 2024, shall not experience a break in service credit for their Iowa public employees’ retirement system benefits and shall not incur any loss in sick leave or vacation time.
   8.  Notwithstanding the September 30 deadline in section 273.7A, as amended by this division of this Act, for the school year beginning July 1, 2024, school districts must provide notice to the area education agency and to the department of education indicating that the school district requests to receive special education services from the area education agency not later than April 30, 2024.
    Sec. 20.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
DIVISION II
AREA EDUCATION AGENCIES —— REORGANIZATION OR DISSOLUTION

    Sec. 21.  Section 273.20, Code 2024, is amended to read as follows:
   273.20  Definitions.
   When used in this subchapter, unless the context otherwise requires:
   1.  “Affected area education agency” or “affected agency” means an any of the following:
   a.  An area education agency whose board of directors is executive directors are contemplating or engaged in reorganization efforts in accordance with this subchapter.
   b.  An area education agency that the director of the department determines should be reorganized or dissolved in accordance with this subchapter.
   2.  “Affected board” means the board of directors of an area education agency that is contemplating or engaged in reorganization efforts in accordance with this subchapter.
   3.  2.  “Department” means the department of education.
   4.  3.  “State board” means the state board of education.
    Sec. 22.  Section 273.21, Code 2024, is amended to read as follows:
   273.21  Voluntary reorganization Reorganization and dissolution.
   1.  a.  Two or more area education agencies may voluntarily reorganize under this subchapter if the area education agencies are contiguous, a majority of the members of each of the affected boards approve the reorganization, and the pursuant to a reorganization plan submitted to the state board pursuant to subsection 3 is approved by the state board that is prepared jointly by the executive directors of the affected area education agencies and submitted to the director of the department pursuant to subsection 2.
   b.  Notwithstanding paragraph “a”, the director of the department may reorganize two or more area education agencies under this subchapter. If the director of the department determines two or more area education agencies should be reorganized, the director shall direct the executive directors of the affected area education agencies to jointly prepare and submit a reorganization plan to the director pursuant to subsection 2.
   c.  The director of the department may dissolve an area education agency under this subchapter.
   2.  If twenty percent or more of the school districts within an affected area education agency file a petition by December 1 with the affected area education agency board to consider reorganization, the affected board shall consider the request and vote on the petition. If a majority of the affected board members vote to study the reorganization of the affected area education agency, the affected board shall immediately begin the study to consider reorganization effective by July 1 of the next year.
   3.  2.  The executive directors of the affected boards contemplating a voluntary reorganization area education agencies shall do the following:
   a.  Develop detailed studies of the facilities, property, services, staffing necessities, equipment, programs, and other capabilities available in each of the affected area education agencies for the purpose of providing for the reorganization of the area education agencies in order to effect more economical operation and the attainment of higher standards of educational services for the schools.
   b.  Survey the school districts within the affected area education agencies to determine the districts’ current and future programs and services, professional development, and technology needs.
   c.  Consult with the officials of school districts within the affected area and other citizens and periodically hold public hearings during the development of a plan for reorganization, as well as a public hearing on the final plan to be submitted to the director of the department.
   d.  Consult with the director of the department of education in the development of surveys and plans. The director of the department of education shall provide assistance and advice to the affected area education agency boards agencies as requested.
   e.  Develop a reorganization plan that demonstrates improved efficiency and effectiveness of programs to meet accreditation standards, includes a preliminary budget for reorganized areas, documents public comment from the public hearings held pursuant to paragraph “c”, and provides for a board of directors, and the number of members that the board shall consist of, in accordance with section 273.8.
   f.  Set forth the assets and liabilities of the affected area education agencies, which shall become the responsibility of the board of directors of the newly formed area education agency on the effective date of the reorganization.
   g.  Transmit the completed plan to the state board director of the department by July August 15. Plans received by the state board after July 15 shall be considered for area education agency reorganization taking effect no sooner than July 1 after the next succeeding fiscal year.
   4.  3.  The state board director of the department shall review the reorganization plan and shall, prior to September 30, either approve the plan as submitted, approve the plan contingent upon compliance with the state board’s director’s recommendations, or disapprove the plan. A contingently approved plan shall be resubmitted with modifications to the director of the department not later than October 30. An approved plan shall take effect on July 1 of the fiscal year following the date of approval by the state board director of the department.
    Sec. 23.  Section 273.22, Code 2024, is amended to read as follows:
   273.22  Contracts of new area education agency.
   1.  The terms of employment of the administrator executive director and staff of affected area education agencies for the school year beginning with the effective date of the formation of the new area education agency shall not may be affected by the formation of the new area education agency, except in accordance with the provisions of sections 279.15 through 279.18, and 279.24, and the authority and responsibility to offer new contracts or to continue, modify, or terminate existing contracts pursuant to sections 279.12, 279.13, and 279.15 through 279.21, 279.23, and 279.24 for the school year beginning with the effective date of the reorganization shall be transferred from the boards of the existing area education agencies to the board of the new area education agency following approval of the reorganization plan by the state board director of the department as provided in section 273.21, subsection 4 3.
   2.  a.  The collective bargaining agreement of the area education agency with the largest basic enrollment, as defined in section 257.6, for the year prior to the year the reorganization is effective, shall serve as the base agreement in the new area education agency and the employees of the other area education agencies involved in the formation of the new area education agency shall automatically be accreted to the bargaining unit of that collective bargaining agreement for purposes of negotiating the contracts for the following years without further action by the public employment relations board. If only one collective bargaining agreement is in effect among the area education agencies that are party to the reorganization, that agreement shall serve as the base agreement, and the employees of the other agencies involved in the formation of the new area education agency shall automatically be accreted to the bargaining unit of that collective bargaining agreement for purposes of negotiating the contracts for the following years without further action by the public employment relations board.  The department of administrative services shall be the chief negotiator for the area education agencies involved in the formation of the new area education agency.
   b.  The board of the newly formed area education agency, using the base agreement as its existing contract, shall bargain with the combined employees of the affected agencies for the school year that begins on the effective date of the reorganization. The bargaining shall be completed by the dates specified in section 20.17 prior to the school year in which the reorganization becomes effective or within one hundred eighty days after the organization of the new board area education agency, whichever is later. If a bargaining agreement was already concluded by the board area education agency and employees of the affected area education agency with the contract serving as the base agreement for the school year beginning with the effective date of the reorganization, that agreement shall be void. However, if the base agreement contains multiyear provisions affecting school years subsequent to the effective year of the reorganization, the base agreement shall remain in effect as specified in the agreement.
   c.  The provisions of the base agreement shall apply to the offering of new contracts or continuation, modification, or termination of existing contracts as provided in subsection 1.
   3.  The terms of a contract between the board of directors of a school district and the board of directors of an affected area education agency shall be carried out by the school board and the board of directors of the newly formed area education agency except as provided in this section.
   4.  The board of directors of a school district that is under a contract with an affected area education agency may petition the boards of directors of the affected area education agencies for release from the contract. If the petition receives a majority of the votes cast by the members of the boards of the affected area education agencies, the petition is approved and by the director of the department, then the contract shall be terminated on the effective date of the area education agency reorganization.
   5.  Not later than fifteen days after the state board director of the department notifies an area education agency of its approval of the area education agency’s reorganization plan or dissolution proposal, the area education agency shall notify, by certified mail, the school districts located within the area education agency boundaries, the school districts and area education agencies that are contiguous to its boundaries, and any other school district under contract with the area education agency, of the state board’s director’s approval of the plan or proposal, and shall provide the department of education with a copy of any notice sent in accordance with this subsection. A petition to join an area education agency or for release from a contract with an area education agency, in accordance with subsections 4, 6, and 7 subsection 4, shall be filed not later than forty-five days after the state board director of the department approves a reorganization plan or dissolution proposal in accordance with this chapter.
   6.  Within forty-five days of the state board’s approval, the board of directors of a school district that is contiguous to a newly reorganized area education agency may petition the board of directors of their current area education agency and the newly reorganized area education agency to join the newly reorganized area education agency. If the initial, or new board if established in time under section 273.23, subsection 3, and the board of the contiguous area education agency approve the petition, the reorganization, including any school district whose petition to join the newly reorganized area education agency has been approved, shall take effect in accordance with the dates established under section 273.21, subsection 4. Both the initial, or new, and the contiguous area education agency boards must act within forty-five days of the deadline, as set forth in this subsection, for the filing of the school district’s petition. Within ten days of an area education agency board’s action, a school district may appeal to the state board the decision of an area education agency board to deny the school district’s petition.
   7.  Within forty-five days of the state board’s approval, the board of directors of a school district that is within a newly reorganized area education agency and whose school district is contiguous to another area education agency not included in the newly reorganized area education agency may petition the board of directors of the newly reorganized area education agency and the contiguous area education agency to join that area education agency. If the initial, or new board if established in time under section 273.23, subsection 3, and the board of the contiguous area education agency approve the petition, the reorganization, excluding any school district whose petition to join an area education agency contiguous to the newly reorganized area education agency has been approved, shall take effect in accordance with the dates established under section 273.21, subsection 4. Both the initial, or new, and the contiguous area education agency boards must act within forty-five days of the deadline, as set forth in this subsection, for the filing of the school district’s petition. Within ten days of an area education agency board’s action, a school district may appeal to the state board the decision of an area education agency board to deny the school district’s petition.
    Sec. 24.  Section 273.23, Code 2024, is amended to read as follows:
   273.23  Initial board.
   1.  A petition filed under section 273.21 shall state the number of directors on the initial board which shall be either seven or nine directors. The petition reorganization plan submitted pursuant to section 273.21 shall specify the number of directors to be retained from each area, and those numbers shall be proportionate to the populations of the affected area education agencies. If the proportionate balance of directors among the affected area education agencies specified in the reorganization plan is affected by school districts petitioning to be excluded from the reorganization, or if the proposal specified in the plan does not comply with the requirement for proportionate representation, the state board director of the department shall modify the proposal. However, all affected area education agencies affected shall retain at least one member.
   2.  Prior to the organization meeting of the board of directors of the newly formed area education agency, the boards of the former area education agencies shall designate directors to be retained as members to serve on the initial board of the newly formed area education agency. A vacancy occurs if an insufficient number of former board members reside within the newly formed area education agency’s boundaries or if an insufficient number of former board members are willing to serve on the board of the newly formed area education agency. Vacancies, as defined in section 277.29, in the membership of the newly formed area education agency board shall be filled for the unexpired portion of the term at a director district convention called and conducted in the manner provided in section 273.8 for director district conventions.
   3.  Not later than January 15 of the calendar year in which the reorganization takes effect, the initial board shall call a director district convention under the provisions of section 273.8, subsection 3, for the purpose of electing a board for the reorganized area education agency. The new board shall have control of the employment of all personnel for the newly formed area education agency for the ensuing school year. Following the organization of the new board, the board shall have authority to establish policy, enter into contracts, and complete such planning and take such action as is essential for the efficient management of the newly formed area education agency.
   4.  The initial board of the newly formed district area education agency shall appoint an acting administrator chairperson and an acting board secretary. The appointment of the acting administrator shall not be subject to the continuing contract provisions of sections 279.20, 279.23, and 279.24.
The acting chair shall serve until the executive director of the area education agency appoints a chairperson, who shall serve at the pleasure of the executive director.
   5.  The initial board, or new board if established in time under subsection 3, of the newly formed agency shall prepare an annual budget estimating income and expenditures for programs and services as provided in sections 273.1 through 273.9 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 not be later than March 1, the time, and the location of the public hearing. The proposed budget as approved by the board shall be submitted to the state board, on forms provided by the department, no later than March 15 for approval. The state board shall review the proposed budget of the newly formed area education agency and shall, before May 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 May 15. 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.
   6.  For the school year beginning on the effective date of an area education agency reorganization as provided in this subchapter, the media services cost per pupil as determined under section 257.37 for all districts in a newly formed area education agency for the budget year shall be the highest amount of media services cost per pupil for any of the affected area education agencies.
   7.  For the school year beginning on the effective date of an area education agency reorganization as provided in this subchapter, the educational services cost per pupil as determined under section 257.37 for all districts in a newly formed area education agency for the budget year shall be the highest amount of educational services cost per pupil for any of the affected area education agencies.
   8.  For the school year beginning on the effective date of an area education agency reorganization as provided in this subchapter, the special education support services cost per pupil shall be based upon the combined base year budgets for special education support services of the area education agencies that reorganized to form the newly formed area education agency, divided by the total of the weighted enrollment for special education support services in the reorganized area education agency for the base year plus the supplemental state aid amount per pupil for special education support services for the budget year as calculated in section 257.8.
   9.  5.  Within one year of the effective date of the reorganization, a newly formed area education agency shall meet the accreditation requirements set forth in section 273.10, and the standards set forth in section 273.11. The newly formed area education agency shall be considered accredited for purposes of budget approval by the state board pursuant to section 273.3. The state board shall inform the newly formed area education agency of the accreditation on-site visit schedule.
   10.  The special education support cost per pupil, the media cost per pupil, and the educational services cost per pupil for a school district petitioning into an area education agency shall be the special education support cost per pupil, media cost per pupil, and educational services cost per pupil of the area education agency into which it petitions if the petition is approved.
   11.  6.  Unless the reorganization of an area education agency takes effect less than two years before the taking of the next federal decennial census, a newly formed area education agency shall, within one year of the effective date of the reorganization, redraw the boundary lines of director districts in the area education agency if a petition filed by a school district to join the newly formed area education agency, or for release from the newly formed area education agency, in accordance with section 273.22, subsections 4, 6, and 7 subsection 4, was approved. Until the boundaries are redrawn, the boundaries for the newly formed area education agency shall be as provided in the reorganization plan approved by the state board director of the department in accordance with section 273.21.
    Sec. 25.  REPEAL.  Sections 273.24, 273.25, 273.26, and 273.27, Code 2024, are repealed.
DIVISION III
AREA EDUCATION AGENCIES —— FUNDING

    Sec. 26.  Section 257.1, subsection 2, paragraph b, Code 2024, is amended to read as follows:
   b.  For the budget year commencing July 1, 1999, and for each succeeding budget year beginning before July 1, 2022, the regular program foundation base per pupil is eighty-seven and five-tenths percent of the regular program state cost per pupil. For the budget year commencing July 1, 2022, and for each succeeding budget year, the regular program foundation base per pupil is eighty-eight and four-tenths percent of the regular program state cost per pupil. For the budget year commencing July 1, 1991, and for each succeeding budget year the special education support services foundation base is seventy-nine percent of the special education support services state cost per pupil. The combined foundation base is the sum of the regular program foundation base, the special education support services foundation base, the total teacher salary supplement district cost, the total professional development supplement district cost, the total early intervention supplement district cost, the total teacher leadership supplement district cost, and the total area education agency teacher salary supplement district cost, and the total area education agency professional development supplement district cost.
    Sec. 27.  Section 257.1, subsection 3, Code 2024, is amended to read as follows:
   3.  Computations rounded.  In making computations and payments under this chapter, except in the case of computations relating to funding of special education support services, media services, and educational services provided through the area education agencies, and the teacher salary supplement, the professional development supplement, the early intervention supplement, and the teacher leadership supplement, the department of management shall round amounts to the nearest whole dollar.
    Sec. 28.  Section 257.4, subsection 1, paragraph a, subparagraph (7), Code 2024, is amended by striking the subparagraph.
    Sec. 29.  Section 257.9, subsection 10, Code 2024, is amended by striking the subsection.
    Sec. 30.  Section 257.10, subsection 8, paragraph a, Code 2024, is amended to read as follows:
   a.  Combined district cost is the sum of the regular program district cost per pupil multiplied by the weighted enrollment, the special education support services district cost, the total teacher salary supplement district cost, the total professional development supplement district cost, the total early intervention supplement district cost, and the total teacher leadership supplement district cost, plus the sum of the additional district cost allocated to the district to fund media services and educational services provided through the area education agency, the area education agency total teacher salary supplement district cost and the area education agency total professional development supplement district cost.
    Sec. 31.  Section 257.11, subsection 5, paragraph a, subparagraph (2), subparagraph division (b), Code 2024, is amended to read as follows:
   (b)  “Political subdivision” means a city, township, county, school corporation, merged area, area education agency, institution governed by the state board of regents, or any other governmental subdivision except for an area education agency.
    Sec. 32.  Section 257.11, subsection 5, paragraph e, Code 2024, is amended to read as follows:
   e.  Supplementary weighting pursuant to this subsection shall be available to an area education agency during the period commencing with the budget year beginning July 1, 2014, through the budget year beginning July 1, 2034 2023. The minimum amount of additional funding for which an area education agency shall be eligible in a budget year is thirty thousand dollars, and the maximum amount of additional funding for which an area education agency shall be eligible is two hundred thousand dollars. The department of management shall annually set a weighting for each area education agency to generate the approved operational sharing expense using the area education agency’s special education cost per pupil amount and foundation level. Criteria for determining the qualification of operational functions for supplementary weighting shall be determined by the department by rule, through consideration of increased student opportunities.
    Sec. 33.  Section 257.15, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  For the budget year beginning July 1, 1991, the department of management shall calculate for each district the difference between the sum of the revenues generated by the foundation property tax and the additional property tax in the district calculated under this chapter and the revenues that would have been generated by the foundation property tax and the additional property tax in that district for that budget year calculated under chapter 442, Code 1989, if chapter 442, Code 1989, were in effect, except that the revenues that would have been generated by the additional property tax levy under chapter 442, Code 1989, shall not include revenues generated for the school improvement program. However in making the calculation of the difference in revenues under this subsection, the department shall not include the revenues generated under section 257.37, Code 1989, and under chapter 442, Code 1989, for funding media and educational services through the area education agencies. If the property tax revenues for a district calculated under this chapter exceed the property tax revenues for that district calculated under chapter 442, Code 1989, the department of management shall reduce the revenues raised by the additional property tax levy in that district under this chapter by that difference and the department of education shall pay property tax adjustment aid to the district equal to that difference from moneys appropriated for property tax adjustment aid.
    Sec. 34.  Section 257.16, subsection 4, Code 2024, is amended to read as follows:
   4.  Notwithstanding any provision to the contrary, if the governor orders budget reductions in accordance with section 8.31, the teacher salary supplement district cost, the professional development supplement district cost, the early intervention supplement district cost, and the teacher leadership supplement district cost as calculated under section 257.10, subsections 9, 10, 11, and 12, and the area education agency teacher salary supplement district cost and the area education agency professional development supplement district cost as calculated under section 257.37A, subsections 1 and 2, shall be paid in full as calculated and the reductions in the appropriations provided in accordance with this section shall be reduced from the remaining moneys appropriated pursuant to this section and shall be distributed on a per pupil basis calculated with the weighted enrollment determined in accordance with section 257.6, subsection 5.
    Sec. 35.  Section 257.32, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  An area education agency budget review procedure is established for the school budget review committee created in section 257.30. The school budget review committee, in addition to its duties under section 257.31, shall meet and hold hearings each year to review unusual circumstances of area education agencies, either upon the committee’s motion or upon the request of an area education agency. The committee may grant supplemental aid to the area education agency from funds appropriated to the department of education for area education agency budget review purposes, or an amount may be added to the area education agency special education support services modified supplemental amount for districts in an area or an additional amount may be added to district cost for media services or educational services for all districts in an area for the budget year either on a temporary or permanent basis, or both.
    Sec. 36.  Section 257.32, subsection 1, paragraph b, subparagraphs (2) and (3), Code 2024, are amended by striking the subparagraphs.
    Sec. 37.  Section 257.35, subsections 1, 17, and 19, Code 2024, are amended to read as follows:
   1.  The department of management shall deduct the amounts calculated for special education support services, media services, and area education agency teacher salary supplement district cost, area education agency professional development supplement district cost, and educational services for each school district from the state aid due to the district pursuant to this chapter that has entered into an agreement with the area education agency pursuant to section 273.7A to provide services for the applicable budget year and shall pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year. The department of management shall notify each school district of the amount of state aid deducted for these purposes and the balance of state aid shall be paid to the district. If a district does not qualify for state aid under this chapter in an amount sufficient to cover its amount due to the area education agency as calculated by the department of management, the school district shall pay the deficiency to the area education agency from other moneys received by the district, on a quarterly basis during each school year.
   17.  a.  Notwithstanding subsection 1, and in addition to the reductions applicable pursuant to subsection 2 and paragraph “b” of this subsection, the state aid for area education agencies and the portion of the combined district cost calculated for these agencies related to expenditures other than expenditures for professional development for the fiscal year beginning July 1, 2022, and ending June 30, 2023, shall be reduced by the department of management by fifteen million dollars. The reduction for each area education agency shall be prorated based on the reduction that the agency received in the fiscal year beginning July 1, 2003.
   b.  Notwithstanding subsection 1, and in addition to the reductions applicable pursuant to subsection 2 and paragraph “a” of this subsection, the state aid for area education agencies and the portion of the combined district cost calculated for these agencies related to professional development expenditures for the fiscal year beginning July 1, 2022, and ending June 30, 2023, shall be reduced by the department of management by an amount equal to the sum of the area education agency professional development supplement district cost for all area education agencies determined under section 257.37A, subsection 2, Code 2022, for the budget year beginning July 1, 2022. The reduction for each area education agency shall be equal to the area education agency’s professional development district cost determined under section 257.37A, subsection 2, Code 2022, for the budget year beginning July 1, 2022. The amounts reduced under this paragraph shall be considered funds paid to school districts and area education agencies under chapter 284 for purposes of requirements for providing professional development opportunities.
   19.  Notwithstanding section 257.37, an An area education agency may use the funds determined to be available under this section in a manner which the area education agency determines is appropriate to best maintain the level of required area education agency special education services. An area education agency may also use unreserved fund balances for media services or education services, as received under section 257.37, Code 2024, in a manner which the area education agency determines is appropriate to best maintain the level of required area education agency special education services.
    Sec. 38.  Section 257.37A, Code 2024, is amended to read as follows:
   257.37A  Area education agency salary supplement funding.
   1.  Area education agency teacher salary supplement cost per pupil and district cost.
   a.  1.  For the budget year beginning July 1, 2009, the department of management shall add together the teacher compensation allocation made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “i”, Code 2009, and the phase II allocation made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the special education support services weighted enrollment in the fiscal year beginning July 1, 2009, to determine the area education agency teacher salary supplement cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years, the area education agency teacher salary supplement district cost per pupil for each area education agency for a budget year is the area education agency teacher salary supplement district cost per pupil for the base year plus the area education agency teacher salary supplement supplemental state aid amount for the budget year.
   b.  2.  For the budget year beginning July 1, 2010, and succeeding budget years, if the department of management determines that the unadjusted area education agency teacher salary supplement district cost of an area education agency for a budget year is less than one hundred percent of the unadjusted area education agency teacher salary supplement district cost for the base year for the area education agency, the area education agency shall receive a budget adjustment for that budget year equal to the difference.
   c.  (1)   3.  a.  The unadjusted area education agency teacher salary supplement district cost is the area education agency teacher salary supplement district cost per pupil for each area education agency for a budget year multiplied by the special education support services weighted enrollment for that area education agency.
   (2)  b.  The total area education agency teacher salary supplement district cost is the sum of the unadjusted area education agency teacher salary supplement district cost plus the budget adjustment for that budget year.
   d.  4.  For the budget year beginning July 1, 2009, the use of the funds calculated under this subsection section shall comply with requirements of chapter 284 and shall be distributed to teachers pursuant to section 284.3A. For the budget year beginning July 1, 2010, and succeeding budget years, the use of the funds calculated under this subsection section and fund balances received for area education agency professional development for a budget year beginning before July 1, 2024, shall comply with the requirements of chapter 284 and shall be distributed to teachers pursuant to section 284.3A.
   2.  Area education agency professional development supplement cost per pupil and district cost.
   a.  For the budget year beginning July 1, 2009, the department of management shall divide the area education agency professional development supplement made to each area education agency for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “d”, Code 2009, by the special education support services weighted enrollment in the fiscal year beginning July 1, 2009, to determine the professional development supplement cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years, the area education agency professional development supplement district cost per pupil for each area education agency for a budget year is the area education agency professional development supplement district cost per pupil for the base year plus the area education agency professional development supplement supplemental state aid amount for the budget year.
   b.  For the budget year beginning July 1, 2010, and succeeding budget years, if the department of management determines that the unadjusted area education agency professional development supplement district cost of an area education agency for a budget year is less than one hundred percent of the unadjusted area education agency professional development supplement district cost for the base year for the area education agency, the area education agency shall receive a budget adjustment for that budget year equal to the difference.
   c.  (1)  The unadjusted area education agency professional development supplement district cost is the area education agency professional development supplement district cost per pupil for each area education agency for a budget year multiplied by the special education support services weighted enrollment for that area education agency.
   (2)  The total area education agency professional development supplement district cost is the sum of the unadjusted area education agency professional development supplement district cost plus the budget adjustment for that budget year.
   d.  The use of the funds calculated under this subsection shall comply with requirements of chapter 284.
    Sec. 39.  Section 284.3A, subsection 4, Code 2024, is amended to read as follows:
   4.  The teacher salary supplement district cost as calculated under section 257.10, subsection 9, and the area education agency teacher salary supplement district cost as calculated under section 257.37A, subsection 1, are not subject to a uniform reduction in accordance with section 8.31.
    Sec. 40.  Section 284.4, subsection 1, paragraph b, subparagraph (3), Code 2024, is amended to read as follows:
   (3)  Determine, following the adoption of the Iowa professional development model by the state board of education, the use and distribution of the professional development funds calculated and paid to the school district or agency as provided in section 257.9, subsection 10, or section 257.10, subsection 10, based upon school district or agency, attendance center, and individual teacher and professional development plans.
    Sec. 41.  Section 284.6, subsections 8 and 9, Code 2024, are amended to read as follows:
   8.  For each year in which a school district receives funds calculated and paid to school districts for professional development pursuant to section 257.10, subsection 10, or section 257.37A, subsection 2, the school district shall create quality professional development opportunities. Not less than thirty-six hours in the school calendar, held outside of the minimum school day, shall be set aside during nonpreparation time or designated professional development time to allow practitioners to collaborate with each other to deliver educational programs and assess student learning, or to engage in peer review pursuant to section 284.8, subsection 1. The funds may be used to implement the professional development provisions of the teacher career paths and leadership roles specified in section 284.15, including but not limited to providing professional development to teachers, including additional salaries for time beyond the normal negotiated agreement; activities and pay to support a beginning teacher mentoring and induction program that meets the requirements of section 284.5; pay for substitute teachers, professional development materials, speakers, and professional development content; textbooks and curriculum materials used for classroom purposes if such textbooks and curriculum materials include professional development; administering assessments pursuant to section 256.7, subsection 21, paragraph “b”, subparagraphs (1) and (2), if such assessments include professional development; and costs associated with implementing the individual professional development plans. The use of the funds shall be balanced between school district, attendance center, and individual professional development plans, making every reasonable effort to provide equal access to all teachers.
   9.  Moneys received pursuant to section 257.10, subsection 10, or section 257.37A, subsection 2, shall be maintained as a separate listing within a school district’s or area education agency’s budget for funds received and expenditures made pursuant to this subsection. The department shall not require a school district or area education agency to allocate a specific amount or percentage of moneys received pursuant to section 257.10, subsection 10, or section 257.37A, subsection 2, for professional development related to implementation of the core curriculum under section 256.7, subsection 26. A school district shall certify to the department how the school district allocated the funds and that moneys received under this subsection were used to supplement, not supplant, the professional development opportunities the school district would otherwise make available. For budget years beginning on or after July 1, 2017, all or a portion of the moneys received pursuant to section 257.10, subsection 10, that remain unexpended and unobligated at the end of a fiscal year may, pursuant to section 257.10, subsection 10, paragraph “d”, be transferred for deposit in the school district’s flexibility account established under section 298A.2, subsection 2.
    Sec. 42.  Section 298.4, subsection 1, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The Subject to a reduction under subsection 3, the board of directors of a school district may certify for levy by April 30 of a school year, a tax on all taxable property in the school district for a district management levy. The revenue from the tax levied in this section shall be placed in the district management levy fund of the school district. The district management levy shall be expended only for the following purposes:
    Sec. 43.  Section 298.4, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  A tax levied under this section may be reduced by the department of management if the department determines that the reduction in the school district’s combined district cost as a result of the repeal of section 257.37, Code 2024, and elimination of section 257.37A, subsection 2, Code 2024, does not result in a corresponding reduction in the total amount of property taxes levied by the school district for the budget year. The department of management may evaluate the amounts of property taxes levied by the school district and purposes for which such revenues are budgeted to determine the adequacy of the reduction in the school district’s total amount of property taxes.
    Sec. 44.  REPEAL.  Section 257.37, Code 2024, is repealed.
    Sec. 45.  APPLICABILITY.  This division of this Act applies July 1, 2024, for school budget years beginning on or after that date.
DIVISION IV
TEACHER COMPENSATION

    Sec. 46.  Section 257.10, subsection 12, paragraph d, Code 2024, is amended to read as follows:
   d.  Except as otherwise allowed under this paragraph, for the budget year beginning July 1, 2014, and succeeding budget years, the use of the funds calculated under this subsection shall comply with the requirements of chapter 284 and shall be distributed to teachers pursuant to section 284.15. The funds shall be used only to increase the payment for a teacher assigned to a leadership role pursuant to a framework or comparable system approved pursuant to section 284.15; to increase the percentages of teachers assigned to leadership roles; to increase the minimum teacher starting salary to thirty-three fifty thousand five hundred dollars; to cover the costs for the time mentor and lead teachers are not providing instruction to students in a classroom; for coverage of a classroom when an initial or career teacher is observing or co-teaching with a teacher assigned to a leadership role; for professional development time to learn best practices associated with the career pathways leadership process; and for other costs associated with a framework or comparable system approved by the department of education under section 284.15 with the goals of improving instruction and elevating the quality of teaching and student learning. If all requirements for the school district for the use of funds calculated under this subsection are met and funds received under this subsection remain unexpended and unobligated at the end of a fiscal year beginning on or after July 1, 2020, the school district may transfer all or a portion of such unexpended and unobligated funds for deposit in the school district’s flexibility account established under section 298A.2, subsection 2. At the end of a fiscal year beginning on or after July 1, 2022, school districts may use all or a portion of funds under this subsection for the purposes authorized under subsection 9, paragraph “d”, and, notwithstanding any provision of law to the contrary, school districts shall not be required to participate in or comply with section 284.15 in order to continue to receive funding under this subsection.
    Sec. 47.  Section 284.15, subsection 2, paragraph a, subparagraph (1), Code 2024, is amended to read as follows:
   (1)  The salary for an initial teacher who has successfully completed an approved practitioner preparation program as defined in section 256.145 or holds an initial or intern teacher license issued under chapter 256, subchapter VII, part 3, shall be at least thirty-three fifty thousand five hundred dollars, which shall also constitute the minimum salary for an Iowa teacher.
    Sec. 48.  Section 284.15, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  The salary for a career teacher, model teacher, mentor teacher, or lead teacher, who holds a valid license issued under chapter 256, subchapter VII, part 3, and who has been a teacher for at least twelve years, shall be at least sixty-two thousand dollars.
    Sec. 49.  Section 284.16, subsection 1, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The beginning teacher shall be paid not less than thirty-three fifty thousand five hundred dollars and shall meet the following requirements:
    Sec. 50.  Section 284.16, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  A career teacher, instructional coach, curriculum and professional development leader, or model teacher, who has been a teacher for at least twelve years, shall be paid not less than sixty-two thousand dollars.
    Sec. 51.  Section 284.17, subsection 1, Code 2024, is amended to read as follows:
   1.  A minimum salary of thirty-three fifty thousand five hundred dollars for a full-time teacher who has less than twelve years of teaching experience and a minimum salary of sixty-two thousand dollars for a full-time teacher who has at least twelve years of teaching experience.
DIVISION V
CONFORMING CHANGES —— DEPARTMENT OF EDUCATION

    Sec. 52.  Section 256.7, subsection 3, paragraph a, Code 2024, is amended to read as follows:
   a.  Prescribe standards and procedures for the approval of practitioner preparation programs and professional development programs offered in this state by practitioner preparation institutions located within or outside this state and by area education agencies.
    Sec. 53.  Section 256.7, subsections 16 and 22, Code 2024, are amended to read as follows:
   16.  Adopt rules that set standards for approval of family support preservice and in-service training programs, offered by area education agencies and practitioner preparation institutions, and family support programs offered by or through local school districts.
   22.  Adopt rules and a procedure for the approval of para-educator preparation programs offered by a public school district, area education agency, community college, institution of higher education under the state board of regents, or an accredited private institution as defined in section 256.183, subsection 1. The programs shall train and recommend individuals for para-educator certification under section 256.157.
    Sec. 54.  Section 256.7, subsection 32, paragraph c, Code 2024, is amended to read as follows:
   c.  Rules adopted pursuant to this subsection shall require that online learning coursework offered by school districts, accredited nonpublic schools, and area education agencies be rigorous, high-quality, aligned with the Iowa core and core content requirements and standards and the national standards of quality for online courses issued by an internationally recognized association for kindergarten through grade twelve online learning, and taught by a teacher licensed under subchapter VII, part 3, who has specialized training or experience in online learning, including but not limited to an online-learning-for-Iowa-educators-professional-development project offered by area education agencies, a teacher preservice program, or comparable coursework.
    Sec. 55.  Section 256.9, subsections 18, 26, 32, 37, 55, 62, and 68, Code 2024, are amended to read as follows:
   18.  Prepare forms and procedures as necessary to be used by area education agency boards, area education agencies, district boards, school officials, principals, teachers, and other employees, and to insure uniformity, accuracy, and efficiency in keeping records in both pupil and cost accounting, the execution of contracts, and the submission of reports, and notify the area education agency board, district board, or school authorities when a report has not been filed in the manner or on the dates prescribed by law or by rule that the school will not be accredited until the report has been properly filed. The director shall include, on any report for which the department prescribes the form and manner of its submission, a reference to any state or federal statute, rule, or regulation that requires the inclusion of certain information in the report.
   26.  Approve the salaries of area education agency administrators executive directors.
   32.  Develop, or direct the area education agencies to develop, a statewide technical assistance support network to provide school districts or district subcontractors under section 279.49 with assistance in creating developmentally appropriate programs under section 279.49.
   37.  Develop in-service and preservice training programs through the area education agencies and practitioner preparation institutions and guidelines for school districts for the establishment of family support programs. Guidelines developed shall describe barriers to learning and development which can affect children served by family support programs.
   55.  Develop and maintain a list of approved online providers that provide course content through an online learning platform taught by a teacher licensed under subchapter VII, part 3, who has specialized training or experience in online learning including but not limited to an online-learning-for-Iowa-educators-professional-development project offered by area education agencies, a teacher preservice program, or comparable coursework, and whose online learning coursework meets the requirements established by rule pursuant to section 256.7, subsection 32, paragraph “c”. Providers shall apply for approval annually or as determined by the department.
   62.  Develop, establish, and distribute to all school districts evidence-based standards, guidelines, and expectations for the appropriate and inappropriate responses to behavior in the classroom that presents an imminent threat of bodily injury to a student or another person and for the reasonable, necessary, and appropriate physical restraint of a student, consistent with rules adopted by the state board pursuant to section 280.21. The director shall consult with the area education agencies to create comprehensive and consistent standards and guidance for professional development relating to successfully educating individuals in the least restrictive environment, and for evidence-based interventions consistent with the standards established pursuant to this subsection.
   68.  Develop and distribute to school districts and area education agencies a list of all professional development programs and other training programs in which employees of school districts and area education agencies are required to participate pursuant to federal law or state law, including chapter chapters 273 and 284.
    Sec. 56.  Section 256.9, subsection 25, Code 2024, is amended by striking the subsection.
    Sec. 57.  Section 256.9, subsection 30, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Conduct or direct the area education agency to conduct feasibility surveys and studies, if requested under section 282.11, of the school districts within the area education agency service areas and all adjacent territory, including but not limited to contiguous districts in other states, for the purpose of evaluating and recommending proposed whole grade sharing agreements requested under section 282.7 and section 282.10, subsections 1 and 4. The surveys and studies shall be revised periodically to reflect reorganizations which may have taken place in the area education agency, adjacent territory, and contiguous districts in other states. The surveys and studies shall include a cover page containing recommendations and a short explanation of the recommendations. The factors to be used in determining the recommendations include but are not limited to:
    Sec. 58.  Section 256.9, subsection 49, paragraph a, Code 2024, is amended to read as follows:
   a.  Develop and distribute, in collaboration with the area education agencies, core curriculum technical assistance and implementation strategies that school districts and accredited nonpublic schools shall utilize, including but not limited to the development and delivery of formative and end-of-course model assessments classroom teachers may use to measure student progress on the core curriculum adopted pursuant to section 256.7, subsection 26. The department shall, in collaboration with the advisory group convened in accordance with paragraph “b” and educational assessment providers, identify and make available to school districts end-of-course and additional model end-of-course and additional assessments to align with the expectations included in the Iowa core curriculum. 
    Sec. 59.  Section 256.9, subsection 49, paragraph c, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Establish, subject to an appropriation of funds by the general assembly, an Iowa reading research center which shall collaborate with the area education agencies in implementing implement the provisions of this paragraph “c”. 
    Sec. 60.  Section 256.9, subsection 49, paragraph c, subparagraph (1), subparagraph division (e), Code 2024, is amended to read as follows:
   (e)  Professional development strategies and materials to support teacher effectiveness in student literacy development. Subject to an appropriation of funds by the general assembly, the center shall collaborate and coordinate with the area education agencies and the department to develop and offer to school districts at no cost professional development services to enhance the skills of elementary teachers in the use of evidence-based strategies to improve the literacy skills of all students.
    Sec. 61.  Section 256.9, subsection 49, paragraph c, subparagraph (2), Code 2024, is amended to read as follows:
   (2)  The first efforts of the center shall focus on kindergarten through grade three. The center shall draw upon national and state expertise in the field of literacy proficiency, including experts from Iowa’s institutions of higher education and area education agencies with backgrounds in literacy development. The center shall seek support from the Iowa research community in data report development and analysis of available information from Iowa education data sources. The center shall work with the department to identify additional needs for tools and technical assistance for Iowa schools to help schools achieve literacy proficiency goals and seek public and private partnerships in developing and accessing necessary tools and technical assistance.
    Sec. 62.  Section 256.11, subsection 11, paragraph e, Code 2024, is amended to read as follows:
   e.  If the deficiencies have not been corrected, and the conditional accreditation alternatives contained in the report are not mutually acceptable to the state board and the local board, the state board shall deaccredit the school district and merge the territory of the school district with one or more contiguous school districts at the end of the school year. The state board may place a district under receivership for the remainder of the school year. The receivership shall be under the direct supervision and authority of the area education agency in which the district is located department or the department’s designee, which may include a contiguous school district. The decision of whether to deaccredit the school district or to place the district under receivership shall be based upon a determination by the state board of the best interests of the students, parents, residents of the community, teachers, administrators, and school district board members and upon the recommendations of the accreditation committee and the director. 
    Sec. 63.  Section 256.11, subsection 12, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Division of assets and liabilities of the deaccredited school district shall be as provided in this paragraph “a” and in sections 275.29 through and 275.31.
    Sec. 64.  Section 256.11, subsection 17, paragraph c, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   If the provisions of subsection 5, paragraphs “a” through “e” and “g” through “j”, are made inapplicable under paragraph “a”, or are waived under paragraph “b”, the specified subject shall be provided by an area education agency under section 273.16, or by the school district or accredited nonpublic school if an online alternative satisfying the requirements of subparagraph (1), (2), or (3) can be made available by the school district or accredited nonpublic school. Any course not required under subsection 5 may also be provided by an area education agency under section 273.16 or by the school district or accredited nonpublic school. However, in either case, if offered by the school district or accredited nonpublic school, the specified subject or course shall be offered through any of the following means:
    Sec. 65.  Section 256.11, subsection 17, paragraph c, subparagraph (3), Code 2024, is amended to read as follows:
   (3)  An online learning platform offered, subject to the initial availability of federal funds, by the department in collaboration with one or more area education agencies or in partnership with school districts and accredited nonpublic schools. The online learning platform may deliver distance education to students, including students receiving competent private instruction under chapter 299A, provided such students register with the school district of residence and the coursework offered by the online learning platform is taught and supervised by a teacher licensed under subchapter VII, part 3, who has online learning experience and the course content meets the requirements established by rule pursuant to section 256.7, subsection 32, paragraph “c”. The department and the area education agencies operating online learning programs pursuant to section 273.16 shall coordinate the online learning platforms to ensure the most effective use of resources and delivery of services. Federal funds, if available, may be used to offset what would otherwise be costs to school districts for participation in the program.
    Sec. 66.  Section 256.12, subsection 2, paragraph a, Code 2024, is amended to read as follows:
   a.  This section does not deprive the respective boards of public school districts of any of their legal powers, statutory or otherwise, and in accepting the specially enrolled students, each of the boards shall prescribe the terms of the special enrollment, including but not limited to scheduling of courses and the length of class periods. In addition, the board of the affected public school district shall be given notice by the department of its decision to permit the special enrollment not later than six months prior to the opening of the affected public school district’s school year, except that the board of the public school district may waive the notice requirement. School districts and area education agency boards agencies shall make public school services, which shall include special education programs and services and may include health services, services for remedial education programs, guidance services, and school testing services, available to children attending nonpublic schools in the same manner and to the same extent that they are provided to public school students. Service activities shall be similar to those undertaken for public school students. Health services, special education support, and related services provided by area education agencies for the purpose of identifying children with disabilities, assistance with physical and communications needs of students with physical disabilities, and services of an educational interpreter may be provided on nonpublic school premises with the permission of the lawful custodian of the property. Other special education services may be provided on nonpublic school premises at the discretion of the school district or area education agency provider of the service and with the permission of the lawful custodian of the property.
    Sec. 67.  Section 256.32A, subsection 1, paragraph b, Code 2024, is amended to read as follows:
   b.  To the area education agencies regarding the required and preferred qualifications for dyslexia specialists required in accordance with section 273.2, subsection 11 9.
    Sec. 68.  Section 256.33, subsection 1, Code 2024, is amended to read as follows:
   1.  The department shall consort with school districts, area education agencies, community colleges, and colleges and universities to provide assistance to them in the use of educational technology for instruction purposes. The department shall consult with the advisory committee on telecommunications, established in section 256.7, subsection 7, and other users of educational technology on the development and operation of programs under this section.
    Sec. 69.  Section 256.39, subsection 1, Code 2024, is amended to read as follows:
   1.  If the general assembly appropriates moneys for the establishment of a career pathways program, the department of education shall develop a career pathways grant program, criteria for the formation of ongoing career pathways consortia in each merged area, and guidelines and a process to be used in selecting career pathways consortium grant recipients, including a requirement that grant recipients shall provide matching funds or match grant funds with in-kind resources on a dollar-for-dollar basis. A portion of the moneys appropriated by the general assembly shall be made available to schools to pay for the issuance of employability skills assessments to public or nonpublic school students. An existing partnership or organization, including a regional career and technical education planning partnership, that meets the established criteria, may be considered a consortium for grant application purposes. One or more school districts may be considered a consortium for grant application purposes, provided the district can demonstrate the manner in which a community college, area education agency, representatives from business and labor organizations, and others as determined within the region will be involved. Existing regional career and technical education planning partnerships are encouraged to assist the local consortia in developing a plan and budget. The department shall provide assistance to consortia in planning and implementing career pathways program efforts.
    Sec. 70.  Section 256.82, subsection 1, paragraph b, subparagraph (3), Code 2024, is amended to read as follows:
   (3)  One member shall be appointed jointly by the administrators of the area education agencies created by chapter 273 director of the department.
    Sec. 71.  Section 256.136, subsection 4, paragraph c, Code 2024, is amended by striking the paragraph.
    Sec. 72.  Section 256.136, subsection 5, Code 2024, is amended to read as follows:
   5.  Convening the regional career and technical education planning partnership shall be the joint responsibility of the area education agency and community college located within the region. In convening the regional career and technical education planning partnership, the area education agency and the community college shall include stakeholders from each member district of the partnership.
    Sec. 73.  Section 256.145, subsection 4, Code 2024, is amended to read as follows:
   4.  “License” means the authority that is given to allow a person to legally serve as a practitioner, a school, an institution, or a course of study to legally offer professional development programs, other than those programs offered by practitioner preparation schools, institutions, or courses of study, or area education agencies. A license is the exclusive authority to perform these functions.
    Sec. 74.  Section 256.146, subsection 1, paragraph c, Code 2024, is amended to read as follows:
   c.  Rules adopted pursuant to this subsection establishing licensure renewal requirements shall provide that up to half of the units needed for licensure renewal may be earned upon the successful completion of an individualized professional development plan as verified by the supervising licensed evaluator, or by successful completion of professional development courses or programs offered by a professional development program licensed by the board, or by a practitioner preparation institution or area education agency approved by the state board of education.
    Sec. 75.  Section 256.146, subsection 17, Code 2024, is amended to read as follows:
   17.  May adopt rules for practitioners who are not eligible for a statement of professional recognition under subsection 9, 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.
    Sec. 76.  Section 256.151, subsection 1, Code 2024, is amended to read as follows:
   1.  A license issued under board authority is valid for the period of time for which it is issued, unless the license is suspended or revoked. Except as provided in section 256.146, subsection 1, paragraph “a”, subparagraph (2), permanent licenses shall not be issued. A person employed as a practitioner shall hold a valid license with an endorsement for the type of service for which the person is employed. This section does not limit the duties or powers of a school board to select or discharge practitioners or to terminate practitioners’ contracts. A professional development program, except for a program offered by a practitioner preparation institution or area education agency and approved by the state board of education, must possess a valid license for the types of programs offered.
    Sec. 77.  Section 256.160, subsection 1, paragraph a, subparagraph (1), unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The board of directors of a school district or the executive director of an area education agency, the superintendent of a school district, the chief administrator of an area education agency, and the authorities in charge of an accredited nonpublic school shall report to the board any instance of disciplinary action taken against a licensed school employee by the board of directors of the school district or the executive director of an area education agency, the superintendent of the school district, the chief administrator of the area education agency, or the authorities in charge of the accredited nonpublic school for conduct constituting any of the following:
    Sec. 78.  Section 256.160, subsection 1, paragraph a, subparagraph (2), Code 2024, is amended to read as follows:
   (2)  The board of directors of a school district or area education agency, the superintendent of a school district, the chief administrator executive director of an area education agency, and the authorities in charge of an accredited nonpublic school shall report to the board the nonrenewal or termination, for reasons of alleged or actual misconduct, of a person’s contract executed under sections 279.12, 279.13, 279.15, 279.16, 279.18 through 279.21, 279.23, and 279.24, and the resignation of a person who holds a license, certificate, or authorization issued by the board as a result of or following an incident or allegation of misconduct that, if proven, would constitute a violation of the rules adopted by the board to implement section 256.146, subsection 13, paragraph “b”, subparagraph (1); soliciting, encouraging, or consummating a romantic or otherwise inappropriate relationship with a student; falsifying student grades, test scores, or other official information or material; or converting public property or funds to the personal use of the school employee, when the board or reporting official has a good faith belief that the incident occurred or the allegation is true. The board may deny a license or revoke the license of an administrator if the board finds by a preponderance of the evidence that the administrator failed to report the termination or resignation of a school employee holding a license, certificate, statement of professional recognition, or coaching authorization, for reasons of alleged or actual misconduct, as defined by this section.
    Sec. 79.  Section 256.165, subsection 6, Code 2024, is amended to read as follows:
   6.  The state board of education shall work with institutions of higher education, private colleges and universities, community colleges, area education agencies, and professional organizations to ensure that the courses and programs required for authorizations under this section are offered throughout the state at convenient times and at a reasonable cost.
    Sec. 80.  Section 256B.8, subsection 2, Code 2024, is amended to read as follows:
   2.  An area education agency executive director of special education may request approval from the department of education to continue the special education program of a person beyond the period specified in section 256B.2, subsection 1, paragraph “a”, if the person had an accident or prolonged illness that resulted in delays in the initiation of or interruptions in that person’s special education program. Approval may be granted by the department to continue the special education program of that person for up to three years or until the person’s twenty-fourth birthday.
    Sec. 81.  Section 256B.9, subsection 5, Code 2024, is amended to read as follows:
   5.  The division of special education shall audit the reports required in section 273.5 to determine that all children in the area who have been identified as requiring special education have received the appropriate special education instructional and support services, and to verify the proper identification of pupils in the area who will require special education instructional services during the school year in which the report is filed. The division shall certify to the director of the department of management the correct total enrollment of each school district in the state, determined by applying the appropriate pupil weighting index to each child requiring special education, as certified by the directors of special education in executive director of each area education agency.
DIVISION VI
SCHOOLS —— REORGANIZATION OF SCHOOL DISTRICTS —— CONFORMING CHANGES

    Sec. 82.  Section 257.9, subsection 3, Code 2024, is amended to read as follows:
   3.  Special education support services state cost per pupil for 1991-1992.  For the budget year beginning July 1, 1991, for the special education support services state cost per pupil, the department of management shall divide the total of the approved budgets of the area education agencies for special education support services for that year approved by the state board of education under section 273.3, subsection 12 9, by the total of the weighted enrollment for special education support services in the state for the budget year. The special education support services state cost per pupil for the budget year is the amount calculated by the department of management under this subsection.
    Sec. 83.  Section 257.10, subsection 3, Code 2024, is amended to read as follows:
   3.  Special education support services district cost per pupil for 1991-1992.  For the budget year beginning July 1, 1991, for the special education support services district cost per pupil, the department of management shall divide the approved budget of each area education agency for special education support services for that year approved by the state board of education, under section 273.3, subsection 12 9, by the total of the weighted enrollment for special education support services in the area for that budget year. The special education support services district cost per pupil for each school district in an area for the budget year is the amount calculated by the department of management under this subsection.
    Sec. 84.  Section 257.42, subsections 1 and 4, Code 2024, are amended to read as follows:
   1.  Boards of school districts, individually or jointly with the boards of other school districts, shall annually submit program plans for gifted and talented children programs and budget costs to the department of education and to the applicable gifted and talented children advisory council, if an advisory council has been established, as provided in this chapter.
   4.  The department of education shall adopt rules under chapter 17A relating to the administration of this section and sections 257.43 through 257.49 257.46. The rules shall prescribe the format of program plans submitted under section 257.43 and shall require that programs fulfill specified objectives. The department shall encourage and assist school districts to provide programs for gifted and talented children.
    Sec. 85.  Section 274.13, Code 2024, is amended to read as follows:
   274.13  Attaching territory to adjoining corporation.
   In any case where, by reason of natural obstacles, any portion of the inhabitants of any school corporation in the opinion of the area education agency administrator director of the department of education cannot with reasonable facility attend school in their own corporation, the area education agency administrator director shall, by a written order, in duplicate, attach the part thus affected to an adjoining school corporation, the board of the same consenting thereto, one copy of which order shall be at once transmitted to the secretary of each corporation affected thereby, who shall record the same and make the proper designation on the plat of the corporation. Township or county lines shall not be a bar to the operation of this section.
    Sec. 86.  Section 274.14, Code 2024, is amended to read as follows:
   274.14  Restoration.
   When the natural obstacles by reason of which territory has been set off by the area education agency administrator director of the department of education from one school district and attached to another in the same or an adjoining county, as provided in section 274.13, have been removed, such territory may, upon the concurrence of the respective boards, be restored to the school district from which set off and shall be so restored by said boards upon the written application of two-thirds of the electors residing upon the territory so set off together with the concurrence of the area education agency administrator director and the board of the school district from which such territory was originally set off by the said administrator director.
    Sec. 87.  Section 274.37, subsection 1, Code 2024, is amended to read as follows:
   1.  The boundary lines of contiguous school corporations may be changed by the concurrent action of the respective boards of directors at their regular meetings in July, or at special meetings called for that purpose. Such concurrent action shall be subject to the approval of the area education agency board director of the department of education but such concurrent action shall stand approved if the board director does not disapprove such concurrent action within thirty days following receipt of notice thereof. The corporation from which territory is detached shall, after the change, contain not less than four government sections of land.
    Sec. 88.  Section 274.40, Code 2024, is amended to read as follows:
   274.40  Vesting of powers to convey.
   Whenever a majority of the directors of any school district affected as in section 274.39 have moved from such district and have ceased to be residents thereof thereby creating vacancies on the school board and reducing it to less than a quorum, the powers vested by said section in the board of directors shall vest in the area education agency board director of the department of education and the instrument of conveyance shall be executed on behalf of such school district by the president of the area education agency board director of the department of education until an election is called pursuant to chapter 277.
    Sec. 89.  Section 275.1, subsection 3, Code 2024, is amended to read as follows:
   3.  If a district is attached, division of assets and liabilities shall be made as provided in sections 275.29 through and 275.31. The area education agency boards director of the department of education shall develop detailed studies and surveys of the school districts within the area education agency and all adjacent territory for the purpose of providing for reorganization of school districts in order to effect more economical operation and the attainment of higher standards of education in the schools. The plans shall be revised periodically to reflect reorganizations which may have taken place in the area education agency within the impacted area and adjacent territory.
    Sec. 90.  Section 275.2, subsection 1, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The scope of the studies and surveys shall include all of the following matters in the various districts in the area education agency and all adjacent districts adjacent to the area education agency:  
    Sec. 91.  Section 275.2, subsection 2, Code 2024, is amended to read as follows:
   2.  The plans shall also include suggested alternate plans that incorporate the school districts in the area education agency into reorganized districts that meet the enrollment standards specified in section 275.3 and may include alternate plans proposed by school districts for sharing programs under section 28E.9, 256.13, 280.15, 282.7, or 282.10 as an alternative to school reorganization.
    Sec. 92.  Section 275.3, Code 2024, is amended to read as follows:
   275.3  Minimum size.
   No new school district shall be planned by an area education agency board nor shall any proposal for creation or enlargement of any school district be approved by an area education agency board or submitted to electors unless there reside within the proposed limits of such district at least three hundred persons of school age who were enrolled in public schools in the preceding school year. Provided, however, that the director of the department of education shall have authority to grant permission to an area education agency board to approve the formation or enlargement of a school district containing a lower school enrollment than required in this section on the written request of such area education agency board the school districts that will be affected by such formation or enlargement if such request is accompanied by evidence tending to show that sparsity of population, natural barriers or other good reason makes it impracticable to meet the school enrollment requirement.
    Sec. 93.  Section 275.4, Code 2024, is amended to read as follows:
   275.4  Studies, surveys, and plans.
   1.  a.  In developing studies and surveys, the area education agency board director of the department of education shall consult with the officials of school districts in the area and other citizens, shall from time to time hold public hearings, and may employ such research and other assistance as it the director may determine reasonably necessary in order to properly carry on its the survey and prepare definite plans of reorganization.
   b.  In addition, the area education agency board shall consult with the director of the department of education in the development of surveys and plans. The director of the department of education shall provide assistance to the area education agency boards as requested and shall advise the area education agency boards concerning plans of contiguous area education agencies and the reorganization policies adopted by the state board of education.
   2.  Completed plans shall be transmitted by the area education agency board to the director of the department of education.
    Sec. 94.  Section 275.5, Code 2024, is amended to read as follows:
   275.5  Proposals for merger or consolidation.
   A proposal for merger, consolidation, or boundary change of local school districts shall first be submitted to the area education agency board director of the department of education following the procedure prescribed in this chapter. Following receipt of a petition pursuant to section 275.12, the area education agency board director of the department of education shall review its the plans and determine whether the petition complies with the plans which had been adopted by the board director. If the petition does not comply with the plans which had been adopted by the board, the board department of education shall conduct further surveys pursuant to section 275.4 prior to the date set for the hearing upon the petition. If further surveys have been conducted by the board department of education, the board department shall present the results of the further surveys at the hearing upon the petition.
    Sec. 95.  Section 275.6, Code 2024, is amended to read as follows:
   275.6  Progressive program.
   It is the intent of this chapter that the area education agency board director of the department of education shall carry on the program of reorganization progressively and shall, insofar as is possible, authorize submission of proposals to the electors as they are developed and approved.
    Sec. 96.  Section 275.7, Code 2024, is amended to read as follows:
   275.7  Budget.
   The area education agency board director of the department of education shall include in the budget submitted each year such sums as it the director deems necessary to carry on its the reorganization work under this chapter.
    Sec. 97.  Section 275.8, subsection 1, paragraphs a and b, Code 2024, are amended to read as follows:
   a.  Preparation of a written joint plan by two or more school districts in which contiguous territory in two or more area education agencies is considered as a part of a potential school district in the area education agency on behalf of which such plan is filed with the department of education by the area education agency board.
   b.  Adoption of the written joint plan at a joint session of the several area education agency boards of directors of school districts in whose areas the territory is situated. A quorum of each of the boards is necessary to transact business. Votes shall be taken in the manner prescribed in section 275.16.
    Sec. 98.  Section 275.8, subsection 2, paragraph d, Code 2024, is amended to read as follows:
   d.  An affidavit signed on behalf of each of said boards of directors of area education agencies by a member of such board the director of the department of education stating the boundaries as shown on such plat have been agreed upon by the respective boards as are a part of the overall plan of school district reorganization of each such school.
    Sec. 99.  Section 275.8, subsection 3, Code 2024, is amended to read as follows:
   3.  Planning of joint districts shall be conducted in the same manner as planning for single districts, except as provided in this section. Studies and surveys relating to the planning of joint districts shall be filed with the area education agency in which one of the districts is located director of the department of education by the board of directors of the school district which has the greatest taxable property base in the areas where the territory is situated. In the case of controversy over the planning of joint districts, the matter shall be submitted to the director of the department of education. Judicial review of the director’s decision may be sought in accordance with the terms of the Iowa administrative procedure Act, chapter 17A. Notwithstanding the terms of that Act, petitions for judicial review must be filed within thirty days after the decision of the director. 
    Sec. 100.  Section 275.9, subsection 2, Code 2024, is amended to read as follows:
   2.  The provisions of sections 275.1 through 275.5, relating to studies, surveys, hearings and adoption of plans shall constitute a mandatory prerequisite to the effectuation of any proposal for district boundary change. It shall be the mandatory duty of the area education agency board director of the department of education to dismiss the petition if the above provisions are not complied with fully.
    Sec. 101.  Section 275.11, Code 2024, is amended to read as follows:
   275.11  Proposals involving two or more districts.
   Subject to the approval of the area education agency board director of the department of education, contiguous or marginally adjacent territory located in two or more school districts may be united into a single district in the manner provided in sections 275.12 through 275.18, 275.20, and 275.22.
    Sec. 102.  Section 275.12, subsections 1 and 4, Code 2024, are amended to read as follows:
   1.  A petition describing the boundaries, or accurately describing the area included therein by legal descriptions, of the proposed district, which boundaries or area described shall conform to plans developed or the petition shall request change of the plan, shall be filed with the area education agency administrator of the area education agency in which the greatest number of registered voters reside director of the department of education. However, the area education agency administrator director of the department of education shall not accept a petition if any of the school districts affected have approved the issuance of general obligation bonds at an election pursuant to section 296.6 during the preceding six-month period. The petition shall be signed by eligible electors residing in each existing school district or portion affected equal in number to at least twenty percent of the number of registered voters in the school district or portion affected, or four hundred eligible electors, whichever is the smaller number.
   4.  The area education agency board director of the department of education in reviewing the petition as provided in sections section 275.15 and 275.16 shall review the proposed method of election of school directors and may change or amend the plan in any manner, including to specify a different method of electing school directors as may be required by law, justice, equity, and the interest of the people. In the action, the area education agency board director of the department of education shall follow the same procedure as is required by sections section 275.15 and 275.16 for other action on the petition by the area education agency board director.
    Sec. 103.  Section 275.12, subsection 5, paragraphs a and b, Code 2024, are amended to read as follows:
   a.  The area education agency board director of the department of education in reviewing a petition as provided in sections section 275.15 and 275.16 that is not subject to the division of assets and liabilities provisions in sections 275.29 through and 275.31 shall review the proposal for dividing liability for payment of outstanding bonds issued under section 423E.5 or 423F.4, required to be included under section 275.28, and may change or amend the proposal in any manner, including to specify a different division for the reorganized districts or a different method of payment or retirement of the bonds as may be required by law, justice, equity, and the interest of the people. The review conducted by the area education agency director of the department of education, including any resulting change to the proposal, shall ensure that the reorganized district’s estimated revenue under section 423F.2 is sufficient for the payment of principal and interest on the outstanding bonds required to be paid in the budget year following the reorganization.
   b.  For bonds issued under section 423E.5 or 423F.4, the approval of the reorganization at election creates a lien on the revenues from the secure an advanced vision for education fund received by the reorganized district designated in the proposal approved by the area education agency director of the department of education, subject to the same priority as provided by the affected school district that issued the bonds.
    Sec. 104.  Section 275.14, Code 2024, is amended to read as follows:
   275.14  Objection —— time of filing —— notice.
   1.  Within ten days after the petition is filed, the area education agency administrator director of the department of education shall fix a final date for filing objections to the petition which shall be not more than sixty days after the petition is filed and shall fix the date for a hearing on the objections to the petition. Objections shall be filed in the office of the administrator who with the department of education, which shall give notice at least ten days prior to the final day for filing objections, by one publication in a newspaper published within the territory described in the petition, or if none is published in the territory, in a newspaper published in the county where the petition is filed, and of general circulation in the territory described. The notice shall also list the date, time, and location for the hearing on the petition as provided in section 275.15. The cost of publication shall be assessed to each district whose territory is involved in the ratio that the number of pupils in basic enrollment for the budget year, as defined in section 257.6 in each district bears to the total number of pupils in basic enrollment for the budget year in the total area involved. Objections shall be in writing in the form of an affidavit and may be made by any person residing or owning land within the territory described in the petition, or who would be injuriously affected by the change petitioned for and shall be on file not later than 12:00 noon of the final day fixed for filing objections.
   2.  Objection forms shall be prescribed by the department of education and may be obtained from the area education agency administrator department. Objection forms that request that property be removed from a proposed district shall include the correct legal description of the property to be removed.
    Sec. 105.  Section 275.15, Code 2024, is amended to read as follows:
   275.15  Hearing —— decision —— publication —— appeal.
   1.  At the hearing, which shall be held within ten days of the final date set for filing objections, interested parties, both petitioners and objectors, may present evidence and arguments, and the area education agency board director of the department of education shall review the matter on its merits and within ten days after the conclusion of any hearing, shall rule on the objections and shall enter an order fixing the boundaries for the proposed school corporation as will in its the director’s judgment be for the best interests of all parties concerned, having due regard for the welfare of adjoining districts, or dismiss the petition.
   2.  The area education agency board director of the department of education, when entering the order fixing the boundaries, shall consider all available evidence including, but not limited to, information presented by the petitioners, all objections requesting territory exclusion, reorganization studies and plans, geographical patterns evidenced by students using open enrollment to attend school in another district pursuant to section 282.18, potential travel distances required of students, and geographic configuration of the proposed district. The exclusion of territory shall represent a balance between the rights of the objectors and the welfare of the reorganized district.
   3.  If the petition is not dismissed and the board director of the department of education determines that additional information is required in order to fix boundary lines of the proposed school corporation, the board director may continue the hearing for no more than thirty days. The date of the continued hearing shall be announced at the original meeting. Additional objections in the form required in section 275.14 may be considered if filed with the administrator director of the department of education within five days, not including Saturdays, Sundays, or holidays, after the date of the original board hearing. If the hearing is continued, the area education agency administrator director of the department of education may conduct one or more meetings with the boards of directors of the affected districts. Notice of any such meeting must be given at least forty-eight hours in advance by the area education agency administrator director of the department of education in the manner provided in section 21.4. The area education agency board may request that the administrator make alternative recommendations regarding the boundary lines of the proposed school corporation. The area education agency board director of the department of education shall make a decision on the boundary lines within ten days following the conclusion of the continued hearing.
   4.  The administrator director of the department of education shall at once publish the decision in the same newspaper in which the original notice was published. Within twenty days after the publication, the decision rendered by the area education agency board director of the department of education may be appealed to the district court in the county involved by any school district affected. For purposes of appeal, only those school districts who filed reorganization petitions are school districts affected. An appeal from a decision of an area education agency board or joint area education agency boards the director of the department of education under section 275.4, 275.16, or this section is subject to appeal procedures under this chapter and is not subject to appeal under chapter 290.
    Sec. 106.  Section 275.17, Code 2024, is amended to read as follows:
   275.17  Filing a petition.
   If an area education agency board the director of the department of education does not approve the change in boundaries of school districts in accordance with a petition, a petition describing the identical or similar boundaries shall not be filed for a period of six months following the date of the hearing or the vote of the board, whichever is later director publishes the director’s decision pursuant to section 275.15, subsection 4.
    Sec. 107.  Section 275.18, Code 2024, is amended to read as follows:
   275.18  Special election called —— time.
   1.  When the boundaries of the territory to be included in a proposed school corporation and the number and method of the election of the school directors of the proposed school corporation have been determined as provided in this chapter, the area education agency administrator with whom the petition is filed director of the department of education shall give written notice of the election to the county commissioner of elections of the county in the proposed school corporation which has the greatest taxable base. The question shall be submitted to the voters at an election held on a date specified in section 39.2, subsection 4, paragraph “c” in the calendar year prior to the calendar year in which the reorganization will take effect.
   2.  The county commissioner of elections shall give notice of the election by one publication in the same newspaper in which previous notices have been published regarding the proposed school reorganization, and in addition, if more than one county is involved, by one publication in a legal newspaper in each county other than that of the first publication. The publication shall be not less than four nor more than twenty days prior to the election. If the decision published pursuant to section 275.15 or 275.16 includes a description of the proposed school corporation and a description of the director districts, if any, the notice for election and the ballot do not need to include these descriptions. Notice for an election shall not be published until the expiration of time for appeal, which shall be the same as that provided in section 275.15 or 275.16, whichever is applicable; and if there is an appeal, not until the appeal has been disposed of.
   3.  The area education agency administrator director of the department of education shall furnish to the commissioner a map of the proposed reorganized area which must be approved by the commissioner as suitable for posting. The map shall be displayed prominently in at least one place within the voting precinct, and inside each voting booth.
    Sec. 108.  Section 275.22, Code 2024, is amended to read as follows:
   275.22  Canvass and return.
   The canvass shall be conducted pursuant to section 50.24. The county commissioner of elections or controlling commissioner shall certify the results of the election to the area education agency administrator director of the department of education. If the majority of the votes cast by the registered voters is in favor of the proposition, as provided in section 275.20, a new school corporation shall be organized. If the majority of votes cast is opposed to the proposition, a new petition describing the identical or similar boundaries shall not be filed for at least six months from the date of the election. If territory is excluded from the reorganized district, action pursuant to section 274.37 shall be taken prior to the effective date of reorganization. The secretary of the new school corporation shall file a written description of the boundaries as provided in section 274.4.
    Sec. 109.  Section 275.23A, subsection 2, Code 2024, is amended to read as follows:
   2.  Following each federal decennial census the school board shall determine whether the existing director district boundaries meet the standards in subsection 1 according to the most recent federal decennial census. In addition to the authority granted to voters to change the number of directors or method of election as provided in sections 275.35, 275.36, and 278.1, the board of directors of a school district may, following a federal decennial census, by resolution and in accordance with this section, authorize a change in the method of election as set forth in section 275.12, subsection 2, or a change to either five or seven directors after the board conducts a hearing on the resolution. If the board proposes to change the number of directors from seven to five directors, the resolution shall include a plan for reducing the number of directors. If the board proposes to increase the number of directors to seven directors, two directors shall be added according to the procedure described in section 277.23, subsection 2. If necessary, the board of directors shall redraw the director district boundaries. The director district boundaries shall be described in the resolution adopted by the school board. The resolution shall be adopted no earlier than November 15 of the second year immediately following the year in which the federal decennial census is taken and no later than May 15 of the third year immediately following the year in which the federal decennial census is taken. A copy of the plan shall be filed with the area education agency administrator of the area education agency in which the school’s electors reside director of the department of education. If the board does not provide for an election as provided in sections 275.35, 275.36, and 278.1 and adopts a resolution to change the number of directors or method of election in accordance with this subsection, the district shall change the number of directors or method of election as provided unless, within twenty-eight days following the action of the board, the secretary of the board receives a petition containing the required number of signatures, asking that an election be called to approve or disapprove the action of the board in adopting the resolution. The petition must be signed by eligible electors equal in number to not less than one hundred or thirty percent of the number of voters at the last preceding regular school election, whichever is greater. The board shall either rescind its action or direct the county commissioner of elections to submit the question to the registered voters of the school district at an election held on a date specified in section 39.2, subsection 4, paragraph “c”. If a majority of those voting on the question at the election favors disapproval of the action of the board, the district shall not change the number of directors or method of election. If a majority of those voting on the question does not favor disapproval of the action, the board shall certify the results of the election to the department of management and the district shall change the number of directors or method of election as provided in this subsection. At the expiration of the twenty-eight-day period, if no petition is filed, the board shall certify its action to the department of management and the district shall change the number of directors or method of election as provided in this subsection.
    Sec. 110.  Section 275.25, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  If the proposition to establish a new school district carries under the method provided in this chapter, the area education agency administrator with whom the petition was filed director of the department of education shall give written notice of a proposed date for a special election for directors of the newly formed school district to the commissioner of elections of the county in the district involved in the reorganization which has the greatest taxable base. The proposed date shall be as soon as possible pursuant to section 39.2, subsections 1 and 2, and section 47.6, subsections 1 and 2, but not later than the third Tuesday in January of the calendar year in which the reorganization takes effect.
    Sec. 111.  Section 275.25, subsection 2, paragraph b, Code 2024, is amended to read as follows:
   b.  The county board of supervisors shall canvass the votes and the county commissioner of elections shall report the results to the area education agency administrator director of the department of education who shall notify the persons who are elected directors.
    Sec. 112.  Section 275.25, subsection 4, Code 2024, is amended to read as follows:
   4.  The board of the newly formed district shall organize within fifteen days after the special election upon the call of the area education agency administrator director of the department of education. The new board shall have control of the employment of personnel for the newly formed district for the next following school year under section 275.33. Following the first organizational meeting of the board of the newly formed district, the board may establish policy, organize curriculum, enter into contracts, complete planning, and take action as necessary for the efficient management of the newly formed community school district.
    Sec. 113.  Section 275.26, Code 2024, is amended to read as follows:
   275.26  Payment of expenses.
   1.  If a district is established or changes its boundaries it shall pay all expenses incurred by the area education agency administrator and the area education agency board department of education in connection with the proceedings. The county commissioner of elections shall assess the costs of the election against the district as provided in section 47.3. If the proposition is dismissed or defeated at the election, all expenses shall be apportioned among the several districts in proportion to the assessed valuation of property therein.
   2.  If the proposed district or boundary change embraces territory in more than one area education agency school district, such expenses shall be certified to and, if necessary, apportioned among the several districts by the joint agency board director of the department of education. If in only one agency, the certification shall be made by the agency administrator.
   3.  The respective boards to which such expenses are certified shall audit and order the same paid from the general fund. In the event of failure of any board to so audit and pay the expenses certified to it, the area education agency administrator director of the department of education shall certify the expenses to the county auditor in the same manner as is provided for tuition claims in section 282.21 and the funds shall be transferred by the county treasurer from the debtor district to the agency board department of education for payment of said expenses.
    Sec. 114.  Section 275.28, Code 2024, is amended to read as follows:
   275.28  Plan of division of assets and liabilities.
   In addition to setting up the territory to comprise the reorganized districts, a reorganization petition shall provide for a division of assets and liabilities of the districts affected among the reorganized districts. However, if territory is excluded from the reorganized district by the petition or by the area education agency board of directors director of the department of education, the division of all assets and liabilities shall be made under the provisions of sections 275.29 through and 275.31.
    Sec. 115.  Section 275.39, Code 2024, is amended to read as follows:
   275.39  Excluded territory included in new petition.
   Territory described in the petition of a proposed reorganization which has been set out of the proposed reorganization by the area education agency board or the joint boards and in the event of an appeal, after the decision of the director of the department of education or the courts, may be included in any new petition for reorganization.
    Sec. 116.  Section 275.41, subsections 1 and 4, Code 2024, are amended to read as follows:
   1.  As an alternative to the method specified in section 275.25 for electing directors in a newly formed community school district, the procedure specified in this section may be used and if used, the petition filed under section 275.12 shall state the number of directors on the initial board. If two districts are named in the petition, either five or seven directors shall serve on the initial board. If three or more districts are named in the petition, either seven or nine directors shall serve on the initial board. The petition shall specify the number of directors to be retained from each district, and those numbers shall be proportionate to the populations of the districts. If the exclusion of territory from a reorganization affects the proportionate balance of directors among the affected districts specified in the petition, or if the proposal specified in the petition does not comply with the requirement for proportionate representation, the area education board director of the department of education shall modify the proposal. However, all districts affected shall retain at least one member.
   4.  The board of the newly formed district shall organize within forty-five days after the approval of the merger upon the call of the area education agency administrator director of the department of education. The new board shall have control of the employment of all personnel for the newly formed district for the ensuing school year. Following the organization of the new board the board shall have authority to establish policy, organize curriculum, enter into contracts and complete such planning and take such action as is essential for the efficient management of the newly formed community school district.
    Sec. 117.  Section 275.51, subsection 4, Code 2024, is amended to read as follows:
   4.  The board of the school district shall certify to the area education agency board director of the department of education that a commission has been formed, the names and addresses of commission members, and that the commission members represent the various geographic areas and socioeconomic factors present in the district.
    Sec. 118.  Section 275.52, subsection 3, Code 2024, is amended to read as follows:
   3.  The commission may seek assistance from the area education agency and the department of education.
    Sec. 119.  Section 275.54, subsection 4, paragraph a, Code 2024, is amended to read as follows:
   a.  If the board of a district to which area of the dissolving school district will be attached objects to the division of assets and liabilities contained in the dissolution proposal, the matter shall be decided by a panel of disinterested arbitrators. The panel shall consist of one arbitrator selected jointly by affected districts objecting to the provisions of the dissolution proposal, one selected jointly by the affected districts in favor of the provisions of the dissolution proposal, and one selected by the dissolving district. If the number of arbitrators selected is even, a disinterested arbitrator shall be selected by the administrator of the area education agency to which the dissolving district belongs director of the department of education. The decision of the arbitrators shall be made in writing and filed with the secretary of each affected school district. A party to the proceedings may appeal the decision to the district court by serving notice on the secretary of each affected school district within twenty days after the decision is filed. The appeal shall be tried in equity and a decree entered determining the entire matter, including the levy, collection, and distribution of any necessary taxes.
    Sec. 120.  Section 276.10, subsection 5, Code 2024, is amended to read as follows:
   5.  The school districts may cooperate with community colleges, and institutions under the control of the state board of regents, and area education agencies in providing community education programs.
    Sec. 121.  Section 279.6, subsection 1, paragraph b, subparagraph (4), Code 2024, is amended to read as follows:
   (4)  Notwithstanding any requirement of this paragraph to the contrary, when the board is reduced below a quorum, the secretary of the board, or if there is no secretary, the area education agency administrator director of the department of education, shall call a special election in the district, subdistrict, or subdistricts, as the case may be, to fill the vacancies.
    Sec. 122.  Section 279.7, subsection 1, Code 2024, is amended to read as follows:
   1.  If a vacancy or vacancies occur among the elective officers or members of a school board and the remaining members of the board have not filled the vacancy within thirty days after the vacancy occurs or if a valid petition is submitted to the secretary of the board pursuant to section 279.6, subsection 1, or when the board is reduced below a quorum, the secretary of the board, or if there is no secretary, the area education agency administrator director of the department of education, shall call a special election in the district, subdistrict, or subdistricts, as the case may be, to fill the vacancy or vacancies. The county commissioner of elections shall publish the notices required by law for special elections, and the election shall be held not sooner than thirty days nor later than forty days after the thirtieth day following the day the vacancy occurs. If the secretary fails for more than three days to call an election, the administrator director of the department of education shall call it.
    Sec. 123.  Section 279.23, subsection 4, Code 2024, is amended to read as follows:
   4.  For purposes of this section and sections 279.23A, 279.24, and 279.25, the term “administrator” includes school superintendents, assistant superintendents, educational directors employed by school districts for grades kindergarten through twelve, educational directors employed by area education agencies under chapter 273, principals, assistant principals, other certified school supervisors employed by school districts for grades kindergarten through twelve as defined under section 20.4, and other certified school supervisors employed by area education agencies under chapter 273. For purposes of this section and sections 279.23A, 279.24, and 279.25, with regard to community college employees, “administrator” includes the administrator of an instructional division or an area of instructional responsibility, and the administrator of an instructional unit, department, or section.
    Sec. 124.  Section 279.30, Code 2024, is amended to read as follows:
   279.30  Payments —— exceptions.
   Each payment must be made payable to the person entitled to receive the money or deposited directly into an account at a financial institution, as defined in section 527.2, specified by the person entitled to receive the money. The board of directors of a school district or an executive director of an area education agency may by resolution authorize the secretary, upon approval of the superintendent or designee, or administrator executive director, in the case of an area education agency, to issue payments when the board of directors is not in session in payment of reasonable and necessary expenses, but only upon verified bills filed with the secretary or administrator executive director, and for the payment of salaries pursuant to the terms of a written contract. Each payment must be made payable only to the person performing the service or presenting the verified bill, and must state the purpose for which the payment is issued. All bills and salaries for which payments are issued prior to audit and allowance by the board must be passed upon by the board of directors at the next meeting and be entered in the regular minutes of the secretary.
    Sec. 125.  Section 279.50, subsection 8, Code 2024, is amended by striking the subsection.
    Sec. 126.  Section 279.51, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  Two hundred seventy-five thousand eight hundred sixty-four dollars of the funds appropriated shall be allocated to the area education agencies child development coordinating council to assist school districts in developing program plans and budgets under this section and to assist school districts and child development programs under section 256A.3 in meeting other responsibilities in early childhood education.
    Sec. 127.  Section 279.51A, subsection 3, Code 2024, is amended to read as follows:
   3.  If the student whose behavior caused the classroom clearance has an individualized education program or a behavioral intervention plan, the classroom teacher shall call for and be included in a review and potential revision of the student’s individualized education program or behavioral intervention plan by the student’s individualized education program team. The area education agency, in collaboration with the school district and area education agency, if the area education agency is providing special education services to the school district pursuant to section 273.7A, may, when the parent or guardian meets with the individualized education program team during the reevaluation of the student’s individualized education program, inform the parent or guardian of individual or family counseling services available in the area.
    Sec. 128.  Section 280.19A, subsections 1 and 2, Code 2024, are amended to read as follows:
   1.  Each school district shall adopt a plan to provide alternative options education programs to students who are either at risk of dropping out or have dropped out. An alternative options education program may be provided in a district, through a sharing agreement with a school in a contiguous district, or through an areawide program available at the community college serving the merged area in which the school district is located. Each area education agency shall provide assistance in establishing a plan to provide alternative education options to students attending a public school in a district served by the agency.
   2.  When a plan is developed, the district shall be responsible for the operation of the program and shall reimburse the area education agency for the actual costs incurred by the area education agency under this section.
    Sec. 129.  Section 280.29, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  Work with an area education agency child welfare liaison, if the area education agency has employed such a liaison in accordance with section 273.2, subsection 10 8, to develop systems to ease the enrollment transition of a child adjudicated under chapter 232 or receiving foster care services to another school.
    Sec. 130.  Section 280A.4, subsection 6, Code 2024, is amended to read as follows:
   6.  A school district, an accredited nonpublic school, an area education agency, the board of directors of a school district or an area education agency, authorities in charge of the accredited nonpublic school, and employees of the school district, accredited nonpublic school or area education agency, shall not be liable for any injury arising from the provision of voluntary behavioral health screenings or behavioral health services in accordance with this chapter, provided such person has acted reasonably and in good faith and in accordance with the provisions of this chapter.
    Sec. 131.  Section 282.7, subsection 3, Code 2024, is amended to read as follows:
   3.  Notwithstanding sections 28E.9 and 282.8, a school district may negotiate an agreement under subsection 1 for attendance of its pupils in a school district located in a contiguous state subject to a reciprocal agreement by the two state boards in the manner provided in this subsection. Prior to negotiating an agreement with the school district in the contiguous state, the board of directors shall file a written request with the state board of education for a determination whether the school district in the contiguous state meets requirements substantially similar to those required for accredited or approved school districts in this state and the school district receives or has available services equivalent to those that would be provided in this state by an area education agency. The school district shall also obtain approval by the department of education of the sharing proposal, before the agreement becomes effective. Six months before making the request for approval, the district shall request a feasibility study from the department of education. If the state board of this state and the corresponding state board in the contiguous state agree that the school districts of their respective states meet substantially similar requirements and have substantially similar services available to the school district, and if the Iowa department of education approves the proposed contract, the two state boards may sign a reciprocal agreement for attendance of their pupils in the school district of the other state, subject to the agreement signed between the boards of directors of the two districts. A school district that negotiates an agreement with a school district in a contiguous state under this subsection is not eligible for supplementary weighting under section 257.11 as a result of that agreement.
    Sec. 132.  Section 284.2, subsection 9, Code 2024, is amended to read as follows:
   9.  “School board” means the board of directors of a school district, or a collaboration of boards of directors of school districts, or the board of directors of an area education agency, as the context requires.
    Sec. 133.  Section 284.3A, subsection 1, paragraphs a and b, Code 2024, are amended to read as follows:
   a.  For the school year beginning July 1, 2009, if the licensed employees of a school district or area education agency receiving funds pursuant to sections 257.10 and 257.37A are organized under chapter 20 for collective bargaining purposes, the school board or the area education agency and the certified bargaining representative for the licensed employees shall negotiate the distribution of the funds among the teachers employed by the school district or area education agency according to chapter 20.  The department of administrative services shall be the chief negotiator for the area education agency.
   b.  If the licensed employees of a school district or area education agency are not organized for collective bargaining purposes, the board of directors or the area education agency shall determine the method of distribution of such funds.
    Sec. 134.  Section 284.3A, subsection 2, paragraph c, Code 2024, is amended to read as follows:
   c.  If the licensed employees of a school district or area education agency are not organized for collective bargaining purposes, the board of directors or the area education agency shall create the new combined salary. The board of directors or the area education agency shall determine adjustments in salaries resulting from a reduction in the teacher salary supplement per pupil amount.
    Sec. 135.  Section 284.6, subsections 6 and 10, Code 2024, are amended to read as follows:
   6.  School districts, a consortium of school districts, area education agencies, higher education institutions, and other public or private entities including professional associations may be approved by the state board to provide teacher professional development. The professional development program or offering shall, at minimum, meet the requirements of subsection 1. The state board shall adopt rules for the approval of professional development providers and standards for the district development plan.
   10.  If funds are allocated for purposes of professional development pursuant to section 284.13, subsection 1, paragraph “c”, the department shall, in collaboration with the area education agencies, establish teacher development academies for school-based teams of teachers and instructional leaders. Each academy shall include an institute and shall provide follow-up training and coaching.
    Sec. 136.  Section 284.6A, subsection 2, paragraph a, Code 2024, is amended to read as follows:
   a.  A school district or accredited nonpublic school, or a collaborative of one or more school districts, and accredited nonpublic schools, and area education agencies, may apply to the department, in the manner prescribed by the department, to receive moneys from the fund to provide proven professional development activities for Iowa teachers in the area of computer science education.
    Sec. 137.  Section 284.13, subsection 1, paragraph d, subparagraph (3), Code 2024, is amended to read as follows:
   (3)  Of the moneys allocated to the department for the purposes of this paragraph “d”, for each fiscal year included in subparagraph (1), not more than six hundred twenty-six thousand one hundred ninety-one dollars shall be used by the department for the development of a delivery system, in collaboration with area education agencies, to assist in implementing the career paths and leadership roles considered pursuant to sections 284.15, 284.16, and 284.17, including but not limited to planning grants to school districts and area education agencies, technical assistance for the department, technical assistance for districts and area education agencies, training and staff development, and the contracting of external expertise and services. In using moneys allocated for purposes of this subparagraph (3), the department shall give priority to school districts with certified enrollments of fewer than six hundred students. A portion of the moneys allocated annually to the department for purposes of this subparagraph (3) may be used by the department for administrative purposes and for not more than five full-time equivalent positions.
    Sec. 138.  Section 284.13, subsection 1, paragraph f, Code 2024, is amended to read as follows:
   f.  For the fiscal year beginning July 1, 2023, and ending June 30, 2024, to the department an amount up to six hundred twenty-six thousand one hundred ninety-one dollars shall be used by the department for a delivery system, in collaboration with area education agencies, to assist in implementing the career paths and leadership roles considered pursuant to sections 284.15, 284.16, and 284.17, including but not limited to planning grants to school districts and area education agencies, technical assistance for the department, technical assistance for districts and area education agencies, training and staff development, and the contracting of external expertise and services. In using moneys allocated for purposes of this paragraph, the department shall give priority to school districts with certified enrollments of fewer than six hundred students. A portion of the moneys allocated annually to the department for purposes of this paragraph may be used by the department for administrative purposes and for not more than five full-time equivalent positions.
    Sec. 139.  Section 284.15, subsection 12, paragraph a, subparagraph (1), subparagraph division (d), Code 2024, is amended to read as follows:
   (d)  One person appointed jointly by the administrators executive directors of the area education agencies created under chapter 273.
    Sec. 140.  Section 284.16, subsection 1, paragraph c, subparagraph (4), Code 2024, is amended to read as follows:
   (4)  Instructional coaching shall include detailed preliminary discussions as to areas in which the teachers being coached desire to improve; formulation of an action plan to bring about such improvement; in-class supervision by the instructional coach; postclass discussion of strengths, weaknesses, and strategies for improvement; and dialogue between the instructional coach and students and school officials regarding the teachers being coached. An instructional coach shall coordinate instructional coaching activities relating to training and professional development with an area education agency where appropriate.
    Sec. 141.  Section 284A.2, subsections 1 and 7, Code 2024, are amended to read as follows:
   1.  “Administrator” means an individual holding a professional administrator license issued under chapter 256, subchapter VII, part 3, who is employed in a school district administrative position by a school district or area education agency pursuant to a contract issued by a board of directors under section 279.23 and is engaged in instructional leadership. An administrator may be employed in both an administrative and a nonadministrative position by a board of directors and shall be considered a part-time administrator for the portion of time that the individual is employed in an administrative position. 
   7.  “Mentor” means an individual employed by a school district or area education agency as a school district administrator or a retired administrator who holds a valid license issued under chapter 256, subchapter VII, part 3. The individual must have a record of four years of successful administrative experience and must demonstrate professional commitment to both the improvement of teaching and learning and the development of beginning administrators.
    Sec. 142.  Section 284A.5, subsections 4 and 5, Code 2024, are amended to read as follows:
   4.  A beginning administrator shall be informed by the school district or the area education agency, prior to the beginning administrator’s participation in a mentoring and induction program, of the criteria upon which the administrator will be evaluated and of the evaluation process utilized by the school district or area education agency.
   5.  By the end of a beginning administrator’s first year of employment, the beginning administrator may be comprehensively evaluated to determine if the administrator meets expectations to move to a professional administrator license, where appropriate. The school district or area education agency that employs a beginning administrator shall recommend the beginning administrator for a professional administrator license, where appropriate, if the beginning administrator is determined through a comprehensive evaluation to demonstrate competence in the Iowa standards for school administrators adopted pursuant to section 256.7, subsection 27. A school district or area education agency may allow a beginning administrator a second year to demonstrate competence in the Iowa standards for school administrators if, after conducting a comprehensive evaluation, the school district or area education agency determines that the administrator is likely to successfully demonstrate competence in the Iowa standards for school administrators by the end of the second year. Upon notification by the school district or area education agency, the board of educational examiners shall grant a beginning administrator who has been allowed a second year to demonstrate competence a one-year extension of the beginning administrator’s initial license. An administrator granted a second year to demonstrate competence shall undergo a comprehensive evaluation at the end of the second year.
    Sec. 143.  Section 284A.6, subsections 1 and 2, Code 2024, are amended to read as follows:
   1.  Each school district shall be responsible for the provision of professional growth programming for individuals employed in a school district administrative position by the school district or area education agency as deemed appropriate by the board of directors of the school district or area education agency. School districts may collaborate with other educational stakeholders including other school districts, area education agencies, professional organizations, higher education institutions, and private providers regarding the provision of professional development for school district administrators. Professional development programming for school district administrators may include support that meets the professional development needs of individual administrators aligned to the Iowa standards for school administrators adopted pursuant to section 256.7, subsection 27, and meets individual administrator professional development plans.
   2.  In cooperation with the administrator’s evaluator, the administrator who has a professional administrator license issued by the board of educational examiners pursuant to chapter 256, subchapter VII, part 3, and is employed by a school district or area education agency in a school district administrative position shall develop an individual administrator professional development plan. The purpose of the plan is to promote individual and group professional development. The individual plan shall be based, at a minimum, on the needs of the administrator, the Iowa standards for school administrators adopted pursuant to section 256.7, subsection 27, and the student achievement goals of the attendance center and the school district.
    Sec. 144.  Section 285.1, subsections 6, 7, 9, and 13, Code 2024, are amended to read as follows:
   6.  When the school designated for attendance of pupils is engaged in the transportation of pupils, the sending or designating school shall use these facilities and pay the pro rata cost of transportation except that a district sending pupils to another school may make other arrangements when it can be shown that such arrangements will be more efficient and economical than to use facilities of the receiving school, providing such arrangements are approved by the board of the area education agency.
   7.  If a local board closes either elementary or high school facilities and is approved by the board of the area education agency to operate its own transportation equipment, the full cost of transportation shall be paid by the board for all pupils living beyond the statutory walking distance from the school designated for attendance.
   9.  Distance to school or to a bus route shall in all cases be measured on the public highway only and over the most passable and safest route as determined by the area education agency board, starting in the roadway opposite the private entrance to the residence of the pupil and ending in the roadway opposite the entrance to the school grounds or designated point on bus route.
   13.  When a local board fails to pay transportation costs due to another school for transportation service rendered, the board of the creditor corporation shall file a sworn statement with the area education agency board department of education specifying the amount due. The agency board department of education shall check such claim and if the claim is valid shall certify to the county auditor. The auditor shall transmit to the county treasurer an order directing the county treasurer to transfer the amount of such claim from the funds of the debtor corporation to the creditor corporation and the treasurer shall pay the same accordingly.
    Sec. 145.  Section 285.1, subsection 16, paragraphs b and c, Code 2024, are amended to read as follows:
   b.  As an alternative to paragraph “a” of this subsection, subject to section 285.9, subsection 3, where practicable, and at the option of the public school district in which a nonpublic school pupil resides, the school district may transport a nonpublic school pupil to a nonpublic school located outside the boundary lines of the public school district if the nonpublic school is located in a school district contiguous to the school district which is transporting the nonpublic school pupils, or may contract with the contiguous public school district in which a nonpublic school is located for the contiguous school district to transport the nonpublic school pupils to the nonpublic school of attendance within the boundary lines of the contiguous school district.
   c.  If the nonpublic school designated for attendance of a pupil is located outside the boundary line of the school district of the pupil’s residence and the district of residence meets the requirements of subsections 14, 15, and this subsection by using subsection 17, paragraph “c”, and the district in which the nonpublic school is located is contiguous to the district of the pupil’s residence and is willing to provide transportation under subsection 17, paragraph “a” or “b”, the district in which the nonpublic school is located may provide transportation services, subject to section 285.9, subsection 3, and may make the claim for reimbursement under section 285.2. The district in which the nonpublic school is located shall notify the district of the pupil’s residence that it is making the claim for reimbursement, and the district of the pupil’s residence shall be relieved of the requirement for providing transportation and shall not make a claim for reimbursement for those nonpublic school pupils for which a claim is filed by the district in which the nonpublic school is located.
    Sec. 146.  Section 285.2, subsection 4, Code 2024, is amended to read as follows:
   4.  a.  Claims shall be allowed where practical, and at the option of the public school district of the pupil’s residence, subject to approval by the area education agency of the pupil’s residence, under section 285.9, subsection 3, the public school district of the pupil’s residence may transport a pupil to a school located in a contiguous public school district outside the boundary lines of the public school district of the pupil’s residence.
   b.  The public school district of the pupil’s residence may contract with the contiguous public school district or with a private contractor under section 285.5 to transport the pupils to the school of attendance within the boundary lines of the contiguous public school district. The public school district in which the pupil resides may contract with the contiguous public school district or with a private contractor under section 285.5 to transport the pupil from the pupil’s residence or from designated school bus collection locations to the school located within the boundary lines of the contiguous public school district, subject to the approval of the area education agency of the pupil’s residence. The public school district of the pupil’s residence may utilize the reimbursement provisions of section 285.1, subsection 3.
    Sec. 147.  Section 285.4, Code 2024, is amended to read as follows:
   285.4  Pupils sent to another district.
   1.  When a board closes its elementary school facilities for lack of pupils or by action of the board, it shall, if there is a school bus service available in the area, designate for attendance the school operating the buses, provided the board of such school is willing to receive them and the facilities and curricular offerings are adequate. The board of the district where the pupils reside may with the approval of the area education agency board, subject to legal limitations and established uniform standards, designate another rural school and provide their own transportation if the transportation costs will be less than to use the established bus service.
   2.  All designations must be submitted to the area education agency board on or before July 15, for review and approval. The agency board shall after due investigation alter or change designations to make them conform to legal requirements and established uniform standards for making designations and for locating and establishing bus routes. After designations are made, they will remain the same from year to year except that on or before July 15, of each year, the rural board or parents may petition the agency board for a change of designation to another school. Appeals from the decision of the agency board on designations may be made by either the parents or board to the director of the department of education as provided in section 285.12 and section 285.13.
    Sec. 148.  Section 285.8, subsection 2, Code 2024, is amended by striking the subsection.
    Sec. 149.  Section 285.8, subsection 3, Code 2024, is amended to read as follows:
   3.  Establish uniform standards for locating and operating bus routes and for the protection of the health and safety of pupils transported, and provide technical assistance on the implementation of those standards.
    Sec. 150.  Section 285.12, Code 2024, is amended to read as follows:
   285.12  Disputes —— hearings and appeals.
   In the event of a disagreement between a school patron and the board of the school district, or between the boards of two or more school districts, the patron if dissatisfied with the decision of the district board, party may appeal to the area education agency board, notifying the secretary of the district in writing within ten days of the decision of the board and by filing an affidavit of appeal with the agency board within the ten-day period director of the department of education within ten days of the decision of the board of the school district by filing an affidavit of appeal with the board of the school district. The affidavit of appeal shall include the reasons for the appeal and points at issue. The secretary of the local board on receiving notice of appeal shall certify all papers to the agency board which director, who shall hear the appeal within ten days of the receipt of the papers and decide it within three days of the conclusion of the hearing and shall immediately notify all parties of its the director’s decision and return all papers. Either party may appeal the decision of the agency board to the director of the department of education by notifying the opposite party and the agency administrator in writing within five days after receipt of notice of the decision of the agency board and by filing with the director of the department of education an affidavit of appeal, reasons for appeal, and the facts involved in the disagreement within five days after receipt of notice of the decision of the agency board. The agency administrator shall, within ten days of receipt of the notice, file with the director all records and papers pertaining to the case, including action of the agency board. The director shall hear the appeal within fifteen days of the filing of the records in the director’s office, notifying all parties and the agency administrator of the date and time of hearing. The director shall notify all parties of the decision and return all papers with a copy of the decision to the agency administrator. The decision of the director shall be subject to judicial review in accordance with chapter 17A. Pending final order made by the director, upon any appeal prosecuted to such director, the order of the agency board of the school district from which the appeal is taken shall be operative and be in full force and effect.
    Sec. 151.  Section 285.15, Code 2024, is amended to read as follows:
   285.15  Forfeiture of reimbursement rights.
   The failure of any local district to comply with the provisions of this chapter or any other laws relating to the transportation of pupils, or any rules made by the department of education under this chapter or the final decisions of the area education agency board, or the final decisions of the department of education shall during the period such failure to comply existed forfeit the rights to collect transportation costs from school or parents while operating in such illegal manner. Any superintendent, board, or board member who knowingly operates or permits to be operated any school bus transporting public school pupils in violation of any school transportation law shall be deemed guilty of a simple misdemeanor.
    Sec. 152.  Section 297.8, Code 2024, is amended to read as follows:
   297.8  Emergency repairs.
   When emergency repairs costing more than the competitive bid threshold in section 26.3, or as established in section 314.1B, are necessary in order to ensure the continued use of any school or school facility, the provisions of the law with reference to advertising for bids shall not apply, and in that event the board may contract for such emergency repairs without advertising for bids. However, before such emergency repairs can be made to any schoolhouse or school facility, it shall be necessary to procure a certificate from the area education agency administrator director of the department of education that such emergency repairs are necessary to ensure the continued use of the school or school facility.
    Sec. 153.  Section 297.22, subsection 2, paragraph a, Code 2024, is amended to read as follows:
   a.  The board of directors of a school district may sell, lease, exchange, give, or grant, and accept any interest in real property to, with, or from a county, municipal corporation, school district, township, or area education agency the department of administrative services if the real property is within the jurisdiction of both the grantor and grantee.
    Sec. 154.  Section 299.3, Code 2024, is amended to read as follows:
   299.3  Reports from accredited nonpublic schools.
   Within ten days from receipt of notice from the secretary of the school district within which an accredited nonpublic school is conducted, the principal of the accredited nonpublic school shall, once during each school year, and at any time when requested in individual cases, furnish to the secretary of the public school district, within which the accredited nonpublic school is located, a certificate and report in duplicate on forms provided by the public school district of the names and ages of each pupil of the accredited nonpublic school who is of compulsory attendance age and the grade level of each pupil, during the preceding year and from the time of the last preceding report to the time at which a report is required. In addition, the report shall identify all students of compulsory attendance age who were truant as defined by law or school policy and the number of days of truancy for the period covered by the report, and children who dropped out, withdrew from enrollment, or transferred to another Iowa school and the date their attendance ceased at the accredited nonpublic school. The secretary shall retain one of the reports and file the other with the secretary of the area education agency.
    Sec. 155.  Section 299.4, subsection 1, Code 2024, is amended to read as follows:
   1.  The parent, guardian, or legal custodian of a child who is of compulsory attendance age, who places the child under competent private instruction under section 299A.2, not in an accredited school or a home school assistance program operated by a school district or accredited nonpublic school, shall furnish a report in duplicate on forms provided by the public school district, to the district by September 1 of the school year in which the child will be under competent private instruction. The secretary shall retain and file one copy and forward the other copy to the district’s area education agency report. The report shall state the name and age of the child, the period of time during which the child has been or will be under competent private instruction for the year, an outline of the course of study, texts used, and the name and address of the instructor. The parent, guardian, or legal custodian of a child, who is placing the child under competent private instruction for the first time, shall also provide the district with evidence that the child has had the immunizations required under section 139A.8, and, if the child is elementary school age, a blood lead test in accordance with section 135.105D.  The term “outline of course of study” shall include subjects covered, lesson plans, and time spent on the areas of study.
    Sec. 156.  Section 299A.4, subsections 3 and 6, Code 2024, are amended to read as follows:
   3.  The director of the department of education, or the director’s designee, which may include a school district or an area education agency, shall conduct the evaluations required under subsections 1 and 2 for children under competent private instruction. Evaluation shall occur at a time and a place to be determined by the person responsible for conducting the evaluation. Persons conducting the evaluations shall make every reasonable effort to conduct the evaluations at times and places which are convenient for the parent, guardian, or legal custodian.
   6.  A school district or area education agency shall, if requested, administer the annual achievement evaluation at no cost to the parent, guardian, or legal custodian of the child being evaluated, and, in addition, the parent, guardian, or legal custodian is not required to reimburse the evaluating entity for costs incurred as a result of evaluation under section 299A.9. The administration of the annual achievement evaluation shall not constitute a dual enrollment purpose under section 299A.8.
    Sec. 157.  Section 301.28, subsections 2 and 3, Code 2024, are amended to read as follows:
   2.  An area education agency executive director, officer, or teacher shall not act as an agent for school textbooks or school supplies, including sports apparel or equipment, in any transaction with a director, officer, or other staff member of the area education agency or any school district located within the area education agency during such time of office or employment.
   3.  A school district or area education agency executive director, officer, or teacher who acts as agent or dealer in school textbooks or school supplies during the person’s term of office or employment in violation of this section shall be deemed guilty of a serious misdemeanor.
    Sec. 158.  REPEAL.  Sections 257.47, 257.48, 257.49, 275.16, 275.27, 275.30, 285.9, and 285.13, Code 2024, are repealed.
DIVISION VII
CONFORMING CHANGES —— MISCELLANEOUS

    Sec. 159.  Section 8A.202, subsection 1, paragraph e, Code 2024, is amended to read as follows:
   e.  Develop and approve, in consultation with the area education agency media centers and the commission, a biennial unified plan of service and service delivery for the department.
    Sec. 160.  Section 8A.203, subsection 1, paragraph a, subparagraph (4), Code 2024, is amended to read as follows:
   (4)  One member shall be employed as a librarian by a school district or area education agency.
    Sec. 161.  Section 8D.13, subsection 3, Code 2024, is amended to read as follows:
   3.  The financing for the procurement costs for the entirety of Part I except for the communications connections between central switching and institutions under the control of the board of regents, and nonprofit institutions of higher education eligible for tuition grants, and for the video, data, and voice capacity for state agencies and for Part II and Part III, shall be provided by the state. The financing for the procurement and maintenance costs for Part III shall be provided by the state. A local school board, governing authority of a nonpublic school, or an area education agency board may elect to provide one hundred percent of the financing for the procurement and maintenance costs for Part III to become part of the network. The basis for the amount of state financing is one hundred percent of a single interactive audio and interactive video connection for Part III, and such data and voice capacity as is necessary. If a school board, governing authority of a nonpublic school, or area education agency board elects to provide one hundred percent of the financing for the leasing costs for Part III, the school district or area education agency may become part of the network as soon as the network can reasonably connect the district or agency. A local school board, governing authority of a nonpublic school, or an area education agency board may also elect not to become part of the network. Construction of Part III, related to a school board, or governing authority of a nonpublic school, or area education agency board which provides one hundred percent of the financing for the leasing costs for Part III, may proceed as determined by the commission and consistent with the purpose of this chapter.
    Sec. 162.  Section 73.18, Code 2024, is amended to read as follows:
   73.18  Notice of solicitation for bids —— identification of targeted small businesses.
   The director of each agency or department, the administrator executive director of each area education agency, the president of each community college, and the superintendent of each school district releasing a solicitation for bids or request for proposal under the targeted small business procurement goal program shall consult a directory of certified targeted small businesses produced by the economic development authority that lists all certified targeted small businesses by category of goods or services provided prior to or upon release of the solicitation and shall send a copy of the request for proposal or solicitation to any appropriate targeted small business listed in the directory. The economic development authority may charge the department, agency, area education agency, community college, or school district a reasonable fee to cover the cost of producing, distributing, and updating the directory.
    Sec. 163.  Section 74.1, subsection 5, Code 2024, is amended by striking the subsection.
    Sec. 164.  Section 84A.16, subsection 3, paragraph a, Code 2024, is amended to read as follows:
   a.  The department of workforce development shall establish and facilitate a steering committee comprised of representatives from the department of education, the economic development authority, the community colleges, the institutions under the control of the state board of regents, accredited private institutions, area education agencies, school districts, the workplace learning connection, and an apprenticeship sponsor as defined in section 84E.2. The steering committee shall be responsible for the development and implementation of the statewide work-based learning intermediary network.
    Sec. 165.  Section 143.1, Code 2024, is amended to read as follows:
   143.1  Authority to employ.
   Any local board of health, area education agency board, or the school board of any school district may employ public health nurses at periods each year and in numbers as deemed advisable. The council of any city, or the school board of any school district, or any of them acting in cooperation, may contract with any nonprofit nurses’ association for public health nursing service. The compensation and expenses shall be paid out of the general fund of the political subdivision employing nurses.
    Sec. 166.  Section 216B.3, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  9A.  Operate and manage a library loan program for the benefit of students enrolled in school districts and nonpublic schools in the state.
    Sec. 167.  Section 225C.51, subsection 1, paragraph e, subparagraph (5), Code 2024, is amended to read as follows:
   (5)  One member shall be an administrator executive director of an area education agency.
    Sec. 168.  Section 256A.2, subsection 1, paragraph c, Code 2024, is amended to read as follows:
   c.  An early childhood specialist of an area education agency selected by the area education agency administrators executive directors.
    Sec. 169.  Section 256B.2, subsection 5, Code 2024, is amended to read as follows:
   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 3 and 6 4.
    Sec. 170.  Section 256B.3, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The division of special education within the department of education has the following duties and powers:
    Sec. 171.  Section 256B.3, subsections 1, 2, 7, and 8, Code 2024, are amended to read as follows:
   1.  To aid in the organization of special schools, classes and instructional facilities for children requiring special education, and to supervise the system of special education for children requiring special education.
   2.  To administer rules adopted by the state board that are consistent with this chapter for the approval of plans for special education programs and services submitted by the director of special education of the area education agency.
   7.  To initiate the establishment of classes for children requiring special education or home study services in hospitals, nursing, convalescent, juvenile and private homes, in cooperation with the management thereof and local school districts or area education agency boards agencies.
   8.  To cooperate with school districts or area education agency boards agencies in arranging for any child requiring special education to attend school in a district other than the one in which the child resides when there is no available special school, class, or instruction in the districts in which the child resides.
    Sec. 172.  Section 256B.3, subsection 4, Code 2024, is amended by striking the subsection.
    Sec. 173.  Section 256B.4, Code 2024, is amended to read as follows:
   256B.4  Powers of board of directors —— area education agencies.
   1.  The board of directors of a school district or area education agency, with the approval of the director of the department of education, may provide special education programs and services as defined in this chapter. If services are provided by the area education agency, the board of directors executive director of the area education agency with the cooperation of the local school districts within its jurisdiction and the division of special education within the department of education may:
   a.  Establish and operate special education programs and classes for the education of children requiring special education.
   b.  Acquire, maintain, and construct Use facilities and property provided by the department of administrative services for the area education agencies in which to provide education, corrective services, and supportive services for children requiring special education.
   c.  Make arrangements with participating school districts for the provision of special education, corrective, and supportive services to the children requiring special education residing in the school districts.
   d.  Employ special education teachers and personnel required to furnish corrective or supportive services to children requiring special education services.
   e.  Provide transportation for children requiring special education services that are in need of transportation in connection with any programs, classes, or services.
   f.  Receive, administer, and expend funds appropriated for its use.
   g.  Receive, administer, and expend the proceeds of any issue of school bonds or other bonds intended wholly or partly for its benefit.
   h.  Apply for, accept, and utilize grants, gifts, or other assistance.
   i.  Participate in, and make its employees eligible to participate in, any retirement system, group insurance system, or other program of employee benefits, on the same terms as govern school districts and their employees.
   j.  Do such other things as are necessary and incidental to the execution of any of its powers.
   2.  The board of directors of the local district or the an area education agency shall employ qualified teachers certified by the authority provided by law as teachers for children requiring such special education. The maximum number of pupils per teacher shall be determined by the board of directors of the local district or the area education agency board, with the approval of the director of the department of education, in accordance with the rules and regulations of the state board of education.
   3.  The board of directors of the local district or the area education agency, with the approval of the director of the department of education, may establish and operate one or more special education centers to provide diagnostic, therapeutic, corrective, and other services, on a more comprehensive, expert, economical, and efficient basis than can be reasonably provided by a single school district. The services, if offered by the area education agency board, may be provided in the regular schools using personnel and equipment of the area education agency or, if it is impractical or inefficient to provide them on the premises of a regular school, the area education agency may provide services in its own facilities. To the maximum extent feasible, centers shall be established at and in conjunction with, or in close proximity to, one or more elementary and secondary schools. Local districts or the area education agencies may accept diagnostic and evaluation studies conducted by other individuals, hospitals, or centers, if determined to be competent. Children requiring special education services may be identified in any way that the department of education determines to be reliable. Centers established pursuant to this section may contain classrooms and other educational facilities and equipment to supplement instruction and other services to children with disabilities in the regular schools, and to provide separate instruction to children whose degree or type of educational disability makes it impractical or inappropriate for them to participate in classes with normal children.
    Sec. 174.  Section 256F.2, subsection 5, Code 2024, is amended to read as follows:
   5.  “Innovation zone consortium” means a consortium of two or more school districts and an area education agency in which one or more of the school districts are located, that receives approval to establish an innovation zone school pursuant to this chapter. In addition, the innovation zone consortium may receive technical assistance from an accredited higher education institution.
    Sec. 175.  Section 256I.8, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  Designate a public agency of this state, as defined in section 28E.2, a community action agency as defined in section 216A.91, an area education agency established under section 273.2, or a nonprofit corporation, to be the fiscal agent for grant moneys and for other moneys administered by the area board.
    Sec. 176.  Section 260C.11, subsection 1, Code 2024, is amended to read as follows:
   1.  The governing board of a merged area is a board of directors composed of one member elected from each director district in the area by the electors of the respective district. Members of the board shall be residents of the district from which elected. Successors shall be chosen at the regular school elections for members whose terms expire. The term of a member of the board of directors is four years and commences at the organizational meeting. Vacancies on the board shall be filled at the next regular meeting of the board by appointment by the remaining members of the board. A member so chosen shall be a resident of the district in which the vacancy occurred and shall serve until a member is elected at the next school election or intervening special election held for the merged area, in accordance with section 69.12. A vacancy is defined in section 277.29. A member shall not serve on the board of directors who is a member of a board of directors of a local school district or a member of an area education agency board.
    Sec. 177.  Section 262.32, Code 2024, is amended to read as follows:
   262.32  Contract —— time limit.
   A contract for instruction under section 262.30 shall be in writing and shall extend over a period of not to exceed two years. A copy of the contract shall be filed in the office of the administrator of the area education agency.
    Sec. 178.  Section 476.48, subsection 1, paragraph c, Code 2024, is amended to read as follows:
   c.  “Small wind innovation zone” means a political subdivision of this state, including but not limited to a city, county, township, school district, community college, area education agency, institution under the control of the state board of regents, or any other local commission, association, or tribal council which adopts, or is encompassed within a local government which adopts, the model ordinance as provided in subsection 3.
    Sec. 179.  Section 598.21B, subsection 2, paragraph e, subparagraph (1), subparagraph division (d), Code 2024, is amended to read as follows:
   (d)  The parent has been identified by the executive director of special education of the area education agency as a child requiring special education as defined in section 256B.2.
DIVISION VIII
TEACHER SALARY SUPPLEMENT DISTRICT COST PER PUPIL

    Sec. 180.  Section 257.10, subsection 9, paragraph a, Code 2024, is amended to read as follows:
   a.  (1)  For the budget year beginning July 1, 2009, the department of management shall add together the teacher compensation allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “h”, Code 2009, and the phase II allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the district’s budget enrollment in the fiscal year beginning July 1, 2009, to determine the teacher salary supplement district cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years beginning before July 1, 2024, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
   (2)  (a)  For the budget year beginning July 1, 2024, the teacher salary supplement district cost per pupil for each school district shall be determined under this subparagraph.
   (b)  The department of management shall categorize all school districts into not more than ten tiers according to each school district’s actual enrollment. Each tier established by the department of management containing a school district with an actual enrollment above three thousand five hundred pupils shall contain, to the extent feasible, the same number of school districts as other tiers containing school districts with an actual enrollment of more than three thousand five hundred pupils. Each tier established by the department of management containing a school district with an actual enrollment equal to or less than three thousand five hundred pupils shall contain, to the extent feasible, the same number of school districts as other tiers containing school districts with an actual enrollment equal to or less than three thousand five hundred pupils.
   (c)  (i)  To support school districts with meeting the minimum teacher starting salary requirement of fifty thousand dollars and the minimum teacher salary requirement for full-time teachers with at least twelve years of experience of sixty-two thousand dollars under chapter 284 and other costs associated with such salary requirements, as identified in subparagraph subdivision (ii), the department of management shall calculate and assign to all school districts in a tier established under subparagraph division (b), a teacher salary supplement district cost per pupil in an amount based in part on the average cost to school districts within the tier to meet the requirements.
   (ii)  If, however, a school district’s total teacher salary supplement district cost under paragraph “c”, as calculated using the teacher salary supplement district cost per pupil assigned to the school district’s applicable tier, is insufficient to comply with the applicable minimum teacher salary requirements of the school district, including costs associated with the employer’s share of contributions to the Iowa public employees’ retirement system and the employer’s share of the tax imposed by the federal Insurance Contributions Act, the department of management shall set the school district’s teacher salary supplement district cost per pupil at an amount necessary to meet the district’s minimum salary requirements and associated costs.
   (3)  For the budget year beginning July 1, 2025, and succeeding budget years, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
DIVISION IX
STATE MANDATE

    Sec. 181.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection 3, shall not apply to this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to education, including modifying provisions related to the number of area education agencies in this state, the duties and powers of area education agencies, area education agency boards of directors, the department of administrative services, and the director of the department of education, the division of special education within the department of education, the services provided by area education agencies, area education agency funding, the calculation of the teacher salary supplement district cost per pupil, and minimum teacher salaries.
   DIVISION I —— AREA EDUCATION AGENCIES —— GENERAL PROVISIONS.  Current law provides that a maximum of 15 area education agencies may be established within the state. As a result of consolidation, there are currently nine area education agencies within the state. The bill provides that there shall be not more than nine area education agencies, as determined by the director of the department of education (DE). Current law provides that each area education agency shall have an administrator, and establishes the duties and powers of the administrator. The bill modifies this provision to provide that each area education agency shall have an executive director. The executive director is to be appointed by, and serve at the pleasure of, the director of DE. Current law provides that each area education agency shall have, and be governed by, a board of directors, and establishes the duties and powers of such board. The bill provides that the area education agency board of directors shall, instead, serve in an advisory capacity. The bill establishes the duties and powers of the area education agencies, the executive directors, and the area education agency boards of directors.
   The bill prohibits area education agencies from holding real property, and tasks the department of administrative services with providing real property and facilities to the area education agencies.
   The bill provides that area education agencies may only provide special education services to school districts located in the area education agency if the school district requests to receive such services and pursuant to a contract between the school district and the area education agency. The bill establishes that the term of such contract shall not be less than two years. The bill also establishes notice requirements related to the requests to receive special education services.
   Current law requires area education agencies to provide media services for local school districts. The bill strikes this requirement. Current law prohibits area education agencies from establishing programs and services which duplicate programs and services which are or may be provided by the community colleges. The bill strikes this provision.
   The bill strikes a provision that requires area education agencies to collaborate with DE to provide statewide infrastructure for educational data. The bill also strikes a provision that requires area education agencies to jointly develop a three-year statewide strategic plan that supports goals adopted by the state board of education.
   The bill makes several other changes to provisions related to area education agencies, including changes related to funding, standards for accrediting area education agency programs, and emergency repairs.
   The bill repeals Code section 273.6 (media centers), Code section 273.7 (additional services), and Code section 273.16 (online learning program).
   The bill includes transition provisions that restrict the transfer of area education agency ownership interests in real property or facilities and that provide for the transfer of area education agency interests in real property and certain lease agreements to the department of administrative services. The transition provisions provide that, on July 1, 2024, the employment of all area education agency administrators is terminated, unless terminated earlier by the director of the department of education who the bill authorizes to terminate the employment of such area education agency administrators. The transition provisions additionally provide that the bill’s changes to Code chapter 273 constitute just cause for the discharge of the area education agency administrators under Code section 279.25 (discharge of administrator), and that the provisions of Code section 279.24 (contract with administrators) shall not apply to the discharge of the administrators.
   The transition provisions require the division of special education within the department of education to give preference to qualified personnel who seek employment with the division of special education because their employment with an area education agency terminated as a result of the bill. The transition provisions provide that any former employee of an area education agency whose employment with an area education agency terminated as a result of the bill and who is employed by the division of special education no later than August 1, 2024, shall not experience a break in service credit for their Iowa public employees’ retirement system benefits and shall not incur any loss in sick leave or vacation time.
   Division I of the bill takes effect upon enactment.
   DIVISION II —— AREA EDUCATION AGENCIES —— REORGANIZATION OR DISSOLUTION. Current law allows the boards of directors of two or more area education agencies to reorganize the area education agencies, with the approval of the state board of education. The bill modifies several provisions related to the reorganization of area education agencies, including by requiring the director of DE to approve a reorganization, authorizing the director of DE to reorganize the area education agencies, and striking school finance provisions related to a reorganized area education agency.
   Current law allows the board of directors of an area education agency to dissolve the area education agency and establishes the process the area education agency must follow in dissolving. The bill provides that only the director of DE has the authority to dissolve an area education agency.
   The bill repeals Code section 273.24 (commission to dissolve area education agency), Code section 273.25 (dissolution commission meetings), Code section 273.26 (dissolution proposal), and Code section 273.27 (dissolution hearing, vote, and state board of education approval).
   DIVISION III —— AREA EDUCATION AGENCIES —— FUNDING. The bill eliminates the area education agency professional development categorical funding supplement, the area education agency media services categorical funding supplement, and the area education agency educational services categorical funding supplement beginning with the 2024-2025 school budget year. The bill makes corresponding changes to other school funding provisions related to the elimination of the categorical funding supplements. The bill specifies that an area education agency may use fund balances for media services or education services in a manner which the area education agency determines is appropriate to best maintain the level of required area education agency special education services. The bill also specifies that fund balances received for area education agency professional development for a budget year beginning before July 1, 2024, shall comply with the requirements of Code chapter 284 and shall be distributed to teachers pursuant to Code section 284.3A, similar to the use area education agency teacher salary supplement funds.
   Code section 257.35 generally requires the department of management to deduct the amounts calculated for special education support services, media services, area education agency teacher salary supplement district cost, area education agency professional development supplement district cost, and educational services for each school district from the state aid due to the district pursuant to Code chapter 257 and instead, pay the amounts to the respective area education agencies on a monthly basis. The bill removes the eliminated categorical funding supplements from those provisions and also provides that such remaining amounts are to be deducted and paid to the applicable area education agency only if the school district has entered into an agreement with the area education agency under the bill to provide services for the applicable budget year.
   The school district management levy under Code section 298.4 is authorized to be used for specified purposes, including unemployment benefit costs, insurance costs, costs of certain judgments, early retirement benefit costs, and mediation and arbitration costs. The bill provides that a school district’s management levy may be reduced by the department of management if the department determines that the reduction in the school district’s combined district cost as a result of the elimination of the area education agency media services categorical funding supplement and the area education agency educational services categorical funding supplement does not result in a corresponding reduction in the total amount of property taxes levied by the school district for the budget year. The bill allows the department of management to evaluate the amounts of property taxes levied by the school district and purposes for which such revenues are budgeted to determine the adequacy of the reduction in the school district’s total amount of property taxes.
   Current law allows school districts to share operational functions with several types of political subdivisions, including area education agencies, in order to provide additional funding to increase student opportunities and redirect more resources to student programming for such school districts. The bill provides that area education agencies are no longer considered political subdivisions for purposes of shared operational functions.
   Current law provides that supplementary weighting under Code section 257.11(5) (shared operational functions) shall be available to an area education agency through the budget year beginning July 1, 2034. The minimum amount of additional funding for which an area education agency shall be eligible in a budget year pursuant to this provision is $30,000, and the maximum amount is $200,000. The bill modifies this provision to provide that such supplementary weighting shall not be available to an area education agency after the budget year beginning July 1, 2023.
   This division of the bill applies July 1, 2024, for school budget years beginning on or after that date.
   DIVISION IV —— TEACHER COMPENSATION. Current law provides that the minimum annual salary for a full-time teacher in the state is $33,500. The bill provides that the minimum annual salary for a full-time teacher in the state with less than 12 years of teaching experience is $50,000, and the minimum annual salary for a full-time teacher in the state with at least 12 years of teaching experience is $62,500.
   DIVISION V —— CONFORMING CHANGES —— DEPARTMENT OF EDUCATION.  The bill strikes provisions that require the state board of education to adopt rules and standards to incorporate area education agencies into professional development programs, family support pre-service and in-service training programs, para-educator programs, and online programs.
   Current law provides that if a school district fails to correct certain deficiencies and the school district is deaccredited by the state board of education, the state board may place the school district under local area education agency receivership. The bill provides that such receivership shall instead be under DE or DE’s designee, which may include a local school district.
   The bill makes several other conforming changes related to DE, including modifying the membership of the Iowa public broadcasting board and modifying provisions related to regional career and technical education planning partnerships.
   DIVISION VI —— SCHOOLS —— REORGANIZATION OF SCHOOL DISTRICTS —— CONFORMING CHANGES. Current law provides that up to 30 percent of the budget of an area for media services may be expended for media resource material including the purchase or replacement of material. The bill strikes this provision.
   Current law provides that, in cases where any portion of the inhabitants of any school corporation, in the opinion of the area education agency administrator, cannot reasonably attend school in their own corporation, the area education agency administrator shall attach the affected part of the school corporation to an adjoining school corporation, with the consent of the board of the adjoining school corporation. The bill modifies this provision to instead provide that it is the director of the department of education who has the authority to attach the affected part of the school corporation to an adjoining school corporation, with the consent of the board of the adjoining school corporation. The bill makes a similar change to the provision governing restoration of the attached part of the school corporation.
   The bill makes several changes to Code chapter 275 (reorganization of school districts) to transfer authority from an area education agency or an area education agency administrator to DE and to remove the consideration of the boundaries of area education agencies from the reorganization process, including provisions related to changing the boundary lines of contiguous school corporations, the vesting of powers to convey land, alternative methods for electing directors of newly formed school corporations, dissolution of school districts, the calling of special elections when a school board is reduced below a quorum, contracting for emergency repairs for school districts, and disputes related to state aid for transportation.
   Current law requires area education agencies to periodically offer a staff development program for teachers who provide instruction in human growth and development. The bill strikes this provision.
   Current law allocates $275,864 of the moneys appropriated to the department of education under Code section 279.51 (programs for at-risk children) to area education agencies to assist school districts and child development programs in meeting responsibilities in early childhood education. The bill provides that these moneys shall, instead, be allocated to the child development coordinating council for the same purposes.
   Current law authorizes a school district to negotiate an agreement with a school district located in a contiguous state allowing students enrolled in grades 7 through 12 in this state to attend school in the contiguous state if the board of directors of the school district in this state files a written request with the state board of education for a determination whether the school district in the contiguous state receives or has available services equivalent to those that would be provided in this state by an area education agency. The bill strikes the requirement related to services provided by area education agencies.
   The bill modifies provisions in Code chapter 284 (teacher performance, compensation, and career development), including by striking a provision allowing the state board of education to approve area education agencies to provide teacher professional development and by striking provisions related to area education agency involvement in implementing career paths and leadership roles.
   The bill makes several changes to Code chapter 284A (administrator quality program) and Code chapter 285 (state aid for transportation) to remove area education agencies from provisions in these Code chapters.
   The bill strikes a provision that requires each area education agency to provide assistance in establishing a plan to provide alternative education options to students attending a public school in a district served by the area education agency.
   The bill repeals Code section 257.47 (cooperation by area education agencies), Code section 257.48 (advisory council), Code section 257.49 (duties of advisory council), Code section 275.16 (hearing when territory in different area education agencies), Code section 275.27 (community school districts —— part of area education agency), Code section 275.30 (arbitration), Code section 285.9 (powers and duties of area boards), and Code section 285.13 (disagreements between boards).
   DIVISION VII —— CONFORMING CHANGES —— MISCELLANEOUS. The bill removes representatives of area education agencies from the state commission of libraries and a steering committee established by the department of workforce development.
   The bill strikes a provision that provides that the procedures of Code chapter 74 (public obligations not paid for want of funds) also apply to the issuance of warrants or the issuance of anticipatory warrants of an area education agency.
   The bill requires the commission for the blind to operate and manage a library loan program for the benefit of students enrolled in school districts and nonpublic schools.
   The bill modifies the duties and powers of the division of special education within the department of education, including by striking provisions related to aiding in the organization of special schools and classes for children requiring special education, approving plans for special education programs and services submitted by area education agencies, and purchasing special equipment for use in special education.
   Code chapter 256F authorizes the creation of charter schools and innovation zone schools. For purposes of Code chapter 256F, an innovation zone consortium means a consortium of two or more school districts and an area education agency in which one or more of the school districts are located, that receives approval to establish an innovation zone school. The bill modifies this provision to strike the reference to an area education agency in which one or more of the school districts are located.
   The bill removes area education agencies from the definition of “small wind innovation zone” in Code section 476.48 (small wind innovation zone program).
   DIVISION VIII —— TEACHER SALARY SUPPLEMENT DISTRICT COST PER PUPIL. The bill modifies how the teacher salary supplement district cost per pupil is determined for each school district for the budget year beginning July 1, 2024. The bill requires the department of management to categorize all school districts into not more than 10 tiers according to each school district’s actual enrollment. The bill provides that each tier established by the department of management containing a school district with an actual enrollment above 3,500 pupils shall contain, to the extent feasible, the same number of school districts as other tiers containing school districts with an actual enrollment of more than 3,500 pupils. The bill also provides that each tier established by the department of management containing a school district with an actual enrollment equal to or less than 3,500 pupils shall contain, to the extent feasible, the same number of school districts as other tiers containing school districts with an actual enrollment equal to or less than 3,500 pupils.
   The bill requires the department of management to calculate and assign to all school districts in a tier a teacher salary supplement district cost per pupil in an amount based in part on the average cost to school districts within the tier to meet the requirements. If, however, a school district’s total teacher salary supplement district cost, as calculated using the teacher salary supplement district cost per pupil assigned to the school district’s applicable tier, is insufficient to comply with the applicable minimum teacher salary requirements of the school district, including costs associated with the employer’s share of contributions to the Iowa public employees’ retirement system and the employer’s share of the tax imposed by the federal Insurance Contributions Act, the bill requires the department of management to set the school district’s teacher salary supplement district cost per pupil at an amount necessary to meet the district’s minimum salary requirements and associated costs.
   The bill provides that for the budget year beginning July 1, 2025, and succeeding budget years, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
   DIVISION IX —— STATE MANDATE. The bill may include a state mandate as defined in Code section 25B.3. The bill makes inapplicable Code section 25B.2(3), which would relieve a political subdivision from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, political subdivisions are required to comply with any state mandate included in the bill.