HSB 713 (LSB 6302YC (6) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON WHEELER)

A BILL FOR

An Act relating to area education agencies, including modifying provisions related to the duties and powers of area education agencies, oversight by the department of education, funding, shared operational functions, and establishing a task force related to area education agency property and operations, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION

    Section 1.  Section 256B.3, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  15A.  Beginning July 1, 2025, oversee the operation of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education.
    Sec. 2.  DIVISION OF SPECIAL EDUCATION —— EMPLOYEES.  From July 1, 2024, to June 30, 2025, the division of special education of the department of education shall do all of the following:
   1.  Devote at least thirteen full-time equivalent positions within the department of education’s location in the city of Des Moines to oversight of the area education agencies, including the accreditation of area education agencies under section 273.10.
   a.  At least one of the full-time equivalent positions shall be an administrator.
   b.  At least one of the full-time equivalent positions shall be a bureau chief of special education.
   c.  At least one of the full-time equivalent positions shall be a liaison for accredited nonpublic schools.
   d.  At least one of the full-time equivalent positions shall be an employee whose primary job duties relate to the child find process for special education.
   e.  At least one of the full-time equivalent positions shall be an employee whose primary job duties relate to best practices concerning the development and implementation of individualized education programs.
   f.  At least five of the full-time equivalent positions shall be devoted to the accreditation of area education agencies.
   2.  Devote five full-time equivalent positions within the main office of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education and to review the services provided by the area education agency.
DIVISION II
AREA EDUCATION AGENCIES —— GENERAL PROVISIONS

    Sec. 3.  Section 273.2, subsections 1 and 3, Code 2024, are amended to read as follows:
   1.  There are established throughout the state fifteen area education agencies, 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.
   3.  a.  The area education agency board 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, which request to receive such services. 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.
   b.  The area education agencies may furnish evidence-based professional development services to public or nonpublic schools located within its boundaries which are on the list of accredited schools pursuant to section 256.11, subject to the approval of the director of the department of education.
    Sec. 4.  Section 273.3, subsections 1, 11, and 12, Code 2024, are amended to read as follows:
   1.  Determine the policies of Advise and consult with the area education agency on policies and procedures for providing programs and services.
   11.  Employ personnel to carry out the functions of the area education agency which shall include the employment of an administrator who shall possess a license issued under chapter 256, subchapter VII, part 3 by the board of educational examiners and, beginning July 1, 2025, either a teaching license with a special education endorsement or a special education support personnel authorization. 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 shall be established by the board based upon the previous experience and education of the administrator; provided, however, that the salary for an area education agency administrator shall not exceed the average salary of all superintendents of the school districts that are located within the boundaries of the area education agency. 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.  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 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.
    Sec. 5.  Section 273.10, subsection 6, Code 2024, is amended to read as follows:
   6.  a.  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:
   (1)  Merge the deficient program with a program from another accredited area education agency.
   (2)  Contract with another area education agency or other public educational institution for purposes of program delivery.
   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 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. 6.  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 division of special education of 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 Evidence-based professional development programs that respond to current needs.
   c.  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.
   g.  Support for school technology planning and staff development for implementing instructional technologies.
   h.  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.  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.
   k.  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.
   l.  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.
   m.  Support for schools and school districts to ensure compliance with rules adopted by the state board of education related to special education.
   n.  Support necessary to implement effective instruction for all students with disabilities through school technology services.
   o.  Support for students using educational programs and services in a manner that is consistent with the educational standards established pursuant to section 256.11.
   p.  Support for staff development and adult learners utilizing evidence-based professional development in a manner that meets the professional needs of staff and adult learners consistent with standards adopted by the state board of education.
   q.  Compliance with all relevant federal and state laws in the provision of services and supports to students with disabilities.
    Sec. 7.  AREA EDUCATION AGENCY —— TASK FORCE.
   1.  The majority leader of the senate, the minority leader of the senate, the speaker of the house of representatives, and the minority leader of the house of representatives shall convene an area education agency task force that shall study and make recommendations related to all of the following:
   a.  The real property and facilities utilized by each area education agency.
   b.  The media services, educational services, and special education services provided by each area education agency.
   c.  What services area education agencies should provide.
   d.  Current accountability measures applicable to area education agencies.
   e.  The special education services provided by the division of special education of the department of education, area education agencies, and school districts.
   f.  The overall organizational structure that determines how special education services are provided to students in this state.
   g.  How the operation of area education agencies is overseen.
   h.  The accreditation standards related to area education agencies.
   i.  A timeline for modifications to the staffing numbers of area education agencies and the transition of responsibilities related to the oversight of area education agencies.
   2.  The task force shall consist of the following members:
   a.  Not more than three members who are appointed by the majority leader of the senate and who are not members of the general assembly.
   b.  Not more than two members who are appointed by the minority leader of the senate and who are not members of the general assembly.
   c.  Not more than three members who are appointed by the speaker of the house of representatives and who are not members of the general assembly.
   d.  Not more than two members who are appointed by the minority leader of the house of representatives and who are not members of the general assembly.
   3.  Any expenses incurred by a member of the task force shall be the responsibility of the individual member or the respective entity represented by the member.
   4.  The task force shall submit its findings and recommendations to the general assembly on or before December 31, 2024.
    Sec. 8.  EFFECTIVE DATE.  The following take effect July 1, 2025:
   1.  The portion of the section of this division of this Act amending section 273.2, subsection 1.
   2.  The portion of the section of this division of this Act amending section 273.3, subsection 1.
    Sec. 9.  APPLICABILITY.  The following applies to employment agreements entered into or renewed between an area education agency and an area education agency administrator on or after July 1, 2024:
   The portion of the section of this division of this Act amending section 273.3, subsection 11.
DIVISION III
AREA EDUCATION AGENCIES —— FUNDING

    Sec. 10.  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 under section 257.37, 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. 11.  Section 257.10, subsection 7, Code 2024, is amended to read as follows:
   7.  Special education support services district cost.  Special education support services district cost for a school district for a budget year is equal to the special education support services district cost per pupil for the budget year multiplied by the special education support services weighted enrollment for the district for the budget year. If the special education support services district cost for a school district for a budget year is less than the special education support services district cost for that district for the base year, the department of management shall adjust the special education support services district cost for that district for the budget year to equal the special education support services district cost for the base year.  Funds calculated under this subsection and received by a school district shall be used by the school district for special education support services contracted from an area education agency.
    Sec. 12.  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 under section 257.37, the area education agency total teacher salary supplement district cost and the area education agency total professional development supplement district cost.
    Sec. 13.  Section 257.35, subsection 1, Code 2024, is amended to read as follows:
   1.  a.  (1)  The For fiscal years beginning before July 1, 2025, the department of management shall 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 this chapter 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.
   (2)  (a)  For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, the department of management shall deduct the area education agency teacher salary supplement district cost from the state aid due to each school district pursuant to this chapter 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.
   (b)  For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, the department of management shall deduct the area education agency professional development supplement district cost from the state aid due to each school district pursuant to this chapter and shall pay the amounts to the department of education to be used for evidence-based professional development purposes.
   b.  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 or the department of education as calculated by the department of management, the school district shall pay the deficiency to the area education agency or department of education, as applicable, from other moneys received by the district, on a quarterly basis during each school year.
    Sec. 14.  Section 257.36, subsection 1, Code 2024, is amended to read as follows:
   1.  Notwithstanding chapters 256B and 273 and sections of this chapter relating to the moneys available to school districts and area education agencies for special education support services, for each school year, the department of education may direct the department of management to deduct amounts from the portions of school district budgets that fund special education support services in an area education agency. The total amount deducted in an area for a school district shall be based upon excess special education support services unreserved and undesignated fund balances in that school district or paid by the school district to an area education agency for a school year that remain unreserved and undesignated as determined by the department of education. The department of management shall determine the amount deducted from each school district in an area education agency on a proportional basis. The department of management shall determine from the amounts deducted from the portions of school district budgets that fund area education agency special education support services the amount that would have been local property taxes and the amount that would have been state aid and for the next following budget year shall increase the district’s total state school aid available under this chapter for area education agency special education support services and reduce the district’s property tax levy for area education agency special education support services by the amount necessary for the property tax portion of the deductions made under this section during the budget year.
    Sec. 15.  Section 257.37, Code 2024, is amended to read as follows:
   257.37  Funding media and educational services.
   Media services and educational services provided by a school district or through the area education agencies agency shall be funded, to the extent provided, by an addition to the combined district cost of each school district, determined as follows:
   1.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for media services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for media services in the base year shall be divided by the enrollment served in the base year to provide an area media services cost per pupil in the base year, and the department of management shall compute the state media services cost per pupil in the base year which is equal to the average of the area media services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the supplemental state aid for media services in the budget year by multiplying the state media services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for media services cost in the budget year equals the area media services cost per pupil in the base year plus the supplemental state aid for media services in the budget year times the enrollment served in the budget year. Funds For fiscal years beginning before July 1, 2025, funds shall be paid to area education agencies as provided in section 257.35.  For fiscal years beginning on or after July 1, 2025, funds may be used by the school district for media services provided by the district or by contract through an area education agency. A school district may use unreserved fund balances for media services for special education support services.
   2.   Up to thirty percent of the budget of an area for media services may be expended for media resource material including the purchase or replacement of material required in section 273.6, subsection 1. Funds shall be paid to area education agencies as provided in section 257.35.
   3.  2.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for educational services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for educational services in the base year shall be divided by the enrollment served in the area in the base year to provide an area educational services cost per pupil in the base year, and the department of management shall compute the state educational services cost per pupil in the base year, which is equal to the average of the area educational services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the supplemental state aid for educational services by multiplying the state educational services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for educational services for the budget year equals the area educational services cost per pupil for the base year plus the supplemental state aid for educational services in the budget year times the enrollment served in the area in the budget year. Funds For fiscal years beginning before July 1, 2025, funds shall be paid to area education agencies as provided in section 257.35.  For the fiscal year beginning July 1, 2025, funds shall be used by the school district for educational services contracted from an area education agency. For fiscal years beginning on or after July 1, 2026, funds may be used by the school district for educational services provided by the district or by contract through an area education agency. A school district may use unreserved fund balances for educational services for special education support services.
   4.  3.  “Enrollment served” means the basic enrollment of all school districts within the boundaries of the area education agency plus the number of nonpublic school pupils served by the area education agency with media services or educational services, as applicable, except that if a nonpublic school pupil or a pupil attending another district under a whole grade sharing agreement or open enrollment receives services through an area other than the area of the pupil’s residence, the pupil shall be deemed to be served by the area of the pupil’s residence, which shall by contractual arrangement reimburse the area through which the pupil actually receives services. Each school district shall include in the enrollment report submitted pursuant to section 257.6, subsection 1, the number of nonpublic school pupils within each school district for media and educational services served by the area. However, the school district shall not include in the enrollment report nonpublic school pupils receiving classes or services funded entirely by federal grants or allocations.
   5.  4.  a.  If For fiscal years beginning before July 1, 2025, if an area education agency does not serve nonpublic school pupils in a manner comparable to services provided public school pupils for media and educational services, as determined by the state board of education, the state board shall instruct the department of management to reduce the funds for media services and educational services within the area one time by an amount to compensate for such reduced services. The media services budget shall be reduced by an amount equal to the product of the cost per pupil in basic enrollment for the budget year for media services times the difference between the enrollment served and the basic enrollment recorded for the area. The educational services budget shall be reduced by an amount equal to the product of the cost per pupil in basic enrollment for the budget year for educational services times the difference between the enrollment served and the basic enrollment recorded for the area.
   b.  This subsection applies only to media and educational services which cannot be diverted for religious purposes.
   c.  Notwithstanding this subsection, an area education agency shall distribute to nonpublic schools media materials purchased wholly or partially with federal funds in a manner comparable to the distribution of such media materials to public schools as determined by the director of the department of education.
   6.  5.  For the budget year beginning July 1, 2002, and each succeeding budget year, notwithstanding the requirements of this section for determining the budgets and funding of media services and education services, an area education agency or school district may, within the limits of the total of the funds provided for the budget years pursuant to section 257.35, expend for special education support services an amount that exceeds the payment for special education support services pursuant to section 257.35 in order to maintain the level of required special education support services in the area education agency or the school district, as applicable.
    Sec. 16.  Section 257.37A, subsection 2, paragraph d, Code 2024, is amended to read as follows:
   d.  The For budget years beginning before July 1, 2025, the use of the funds calculated under this subsection shall comply with requirements of chapter 284.  For budget years beginning on or after July 1, 2025, the funds calculated under this subsection shall be paid to the department of education as provided in section 257.35.
    Sec. 17.  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. 18.  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. 19.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2025.
    Sec. 20.  APPLICABILITY.  This division of this Act applies July 1, 2025, for school budget years beginning on or after that date.
DIVISION IV
SHARED OPERATIONAL FUNCTIONS

    Sec. 21.  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. 22.  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. 23.  APPLICABILITY.  This division of this Act applies July 1, 2024, for school budget years beginning on or after that date.
DIVISION V
DEPARTMENT OF EDUCATION REQUIREMENTS

    Sec. 24.  Section 256.9, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  70.  Develop and distribute to school districts and accredited nonpublic schools a process to facilitate the development of individualized education programs and assist individualized education program teams with decisions regarding free appropriate public education and placement for students enrolled in accredited nonpublic schools.
   NEW SUBSECTION.  71.  Provide professional learning and other support materials and tools for individualized education program teams, including students, families, teacher service providers, and administrators of both school districts and accredited nonpublic schools to help such individuals understand the processes required under the federal law that are relevant to students enrolled in accredited nonpublic schools and to promote informed participation in individualized education program meetings of students enrolled in accredited nonpublic schools.
   NEW SUBSECTION.  72.  Provide information to individualized education program teams and public agencies that nonpublic schools may be considered a placement option so long as the individualized education program of a child with a disability does not require some other arrangement.
   NEW SUBSECTION.  73.  Develop and distribute to school districts professional learning and other materials for meaningful consultation for representatives of area education agencies, school districts, and accredited nonpublic schools.
   NEW SUBSECTION.  74.  Establish sustainable accountability and data collection systems related to special education that meet federal and state legal requirements and encourage innovative models for meeting the needs of students.
   NEW SUBSECTION.  75.  Develop and distribute to school districts and accredited nonpublic schools an implementation plan related to identifying, evaluating, and promoting strategies and models for providing special education and related services with accredited nonpublic schools that improve the experiences and outcomes for students with disabilities.
DIVISION VI
STATE MANDATE

    Sec. 25.  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 area education agencies, including modifying provisions related to the duties and powers of area education agencies, oversight by the department of education (DE), funding, shared operational functions, and establishing a task force related to area education agency property and operations.
   DIVISION I —— DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION. The bill requires the division of special education of DE to, beginning July 1, 2025, oversee the operation of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education.
   The bill provides that, from July 1, 2024, to June 30, 2025, the division of special education shall devote 13 full-time equivalent positions to oversight of the area education agencies and shall devote five full-time equivalent positions within the main office of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education and to review the services provided by the area education agency.
   DIVISION II —— AREA EDUCATION AGENCIES —— GENERAL PROVISIONS. The bill provides that, effective July 1, 2025, the area education agencies will be under the general supervision of the director of DE, and the boards of directors of the area education agencies will serve in an advisory capacity.
   Current law requires the area education agency boards of directors to determine the policies of the area education agency for providing programs and services. The bill provides that, beginning July 1, 2025, the area education agency boards of directors are required to advise and consult with the area education agency on policies and procedures for providing programs and services.
   Current law requires area education agencies to furnish educational services and programs, including special education services and programs, to the pupils enrolled in public or nonpublic schools located within the area education agency’s boundaries. The bill modifies this provision to provide that area education agencies shall furnish such educational services and programs to pupils enrolled in public or nonpublic schools, regardless of location within this state, that request to receive such services.
   The bill authorizes area education agencies to furnish evidence-based professional development services to public or nonpublic schools located within their boundaries.
   The bill requires an administrator employed by an area education agency to, beginning July 1, 2025, possess either a teaching license with a special education endorsement or a special education support personnel authorization.
   Current law requires the board of directors of an area education agency to establish the administrator’s salary based upon the previous experience and education of the administrator. The bill provides that the salary for an area education agency administrator shall not exceed the average salary of all superintendents of the school districts that are located within the boundaries of the area education agency. The bill provides that this provision applies to employment agreements entered into or renewed between an area education agency and an area education agency administrator on or after July 1, 2024.
   Current law requires the board of directors of an area education agency to conduct a public hearing related to the area education agency’s proposed annual budget. The bill strikes this provision and, instead, requires the area education agency to submit the proposed annual budget to the director of DE for approval not later than March 1 of each year.
   Current law provides that, if during the accreditation process deficiencies in an area education agency program have not been corrected, the board of directors of the area education agency is required to either merge the deficient program with a program from another accredited area education agency or contract with another area education agency or other public educational institution for purposes of program delivery. The bill modifies this provision to, instead, require the director of DE to take one of these steps. The bill requires DE to be notified if the accreditation of an area education agency is removed.
   The bill modifies the standards that are used for the accreditation of area education agencies to include several new standards, including but not limited to support for schools and school districts to ensure compliance with rules adopted by the state board of education related to special education, support necessary to implement effective instruction for all students with disabilities through school technology services, support for students using educational programs and services in a manner that is consistent with the educational standards, and support for staff development and adult learners utilizing professional development in a manner that meets the professional needs of staff and adult learners consistent with standards adopted by the state board of education.
   The bill requires the majority leader of the senate, the minority leader of the senate, the speaker of the house of representatives, and the minority leader of the house of representatives to convene an area education agency task force. The bill establishes what the task force is to study and make recommendations related to. The bill requires the task force to submit its findings and recommendations to the general assembly on or before December 31, 2024.
   DIVISION III —— AREA EDUCATION AGENCIES —— FUNDING. The bill modifies funding methodologies for area education agencies and certain educational services provided by area education agencies under current law.
   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. Beginning with the fiscal year beginning July 1, 2025, the bill eliminates the required payment transfer to the area education agencies, except for the amount of the area education agency teacher salary supplement and also directs the department of management to pay the amount of the area education agency professional development supplement to DE to be used for professional development opportunities as required by the bill. Consequently, the amounts that were formerly paid to the area education agency will remain part of the state aid paid to school districts. The bill allows districts to use unreserved fund balances for media services or educational services for special education support services.
   The bill makes corresponding changes to other provisions governing funding reductions for unreserved and undesignated fund balances and the purposes for which such funding supplements may be used by school districts.
   This division of the bill takes effect January 1, 2025, and applies July 1, 2025, for school budget years beginning on or after that date.
   DIVISION IV —— SHARED OPERATIONAL FUNCTIONS. 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.
   The bill provides that the division applies July 1, 2024, for school budget years beginning on or after that date.
   DIVISION V —— DEPARTMENT OF EDUCATION REQUIREMENTS. The bill requires the director of DE to develop and distribute to school districts and accredited nonpublic schools a process to facilitate the development of individualized education programs, certain professional learning materials, and an implementation plan related to identifying, evaluating, and promoting strategies and models for providing special education and related services with accredited nonpublic schools, provide professional learning and other support materials and tools for individualized education program teams, and establish sustainable accountability and data collection systems related to special education.
   DIVISION VI —— 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.