S.F. 2302 Section 1. Section 256B.7, Code 2024, is amended to read as 1 follows: 2 256B.7 Examinations of children. 3 1. In order to render proper instruction to each child 4 requiring special education, the school districts shall certify 5 children requiring special education for special instruction 6 in accordance with the requirements set up by the division 7 of special education and shall provide examinations for 8 children preliminary to making certification. The examinations 9 necessary for the certification of children requiring special 10 education shall be prescribed by the state division of special 11 education. Disputes concerning a child’s eligibility for 12 special education shall be addressed under rules and procedures 13 adopted by the state board of education pursuant to section 14 256B.6 and consistent with the federal Individuals with 15 Disabilities Education Act of 2004, 20 U.S.C. §1400 et seq. 16 2. In order to render proper instruction to each child 17 requiring specialized emotional, social, or behavioral 18 care, the school districts shall certify children requiring 19 specialized emotional, social, or behavioral care for 20 special emotional, social, and behavioral instruction in 21 accordance with the requirements set up by the division of 22 special education and shall provide examinations for children 23 preliminary to making certification. The examinations 24 necessary for the certification of children requiring 25 specialized emotional, social, or behavioral care shall 26 be prescribed by the state division of special education. 27 Disputes concerning a child’s eligibility for special 28 emotional, social, and behavioral instruction shall be 29 addressed under rules and procedures adopted by the state board 30 of education pursuant to section 256B.6. 31 Sec. 2. Section 256B.9, subsection 1, unnumbered paragraph 32 1, Code 2024, is amended to read as follows: 33 In order to provide funds for the excess costs of instruction 34 of children requiring special education or emotional, social, 35 -1- LSB 5840XS (2) 90 dg/jh 1/ 8

S.F. 2302 or behavioral supports , above the costs of instruction of 1 pupils in a regular curriculum, a special education weighting 2 plan for determining enrollment in each school district is 3 adopted as follows: 4 Sec. 3. Section 256B.9, subsection 1, Code 2024, is amended 5 by adding the following new paragraph: 6 NEW PARAGRAPH . f. Children who do not require special 7 education but whose emotional, social, or behavioral needs 8 would prevent the child from academic success in a traditional 9 general education classroom are assigned a weighting of two 10 and two-tenths. This paragraph also applies to children who 11 require the use of therapeutic classrooms. 12 Sec. 4. Section 256B.9, subsections 3, 4, 5, 7, and 9, Code 13 2024, are amended to read as follows: 14 3. The weight that a child is assigned under this section 15 shall be dependent upon the required educational modifications 16 necessary to meet the special education or emotional, social, 17 and behavioral needs of the child. Enrollment for the purpose 18 of this section , and all payments to be made pursuant thereto, 19 includes all children for whom a special education program or 20 course is to be provided pursuant to section 256.12, subsection 21 2 , sections 273.1 through 273.9 , and this chapter , whether or 22 not the children are actually enrolled upon the records of a 23 school district. 24 4. On December 1, 1987, and no later than December 1 every 25 two years thereafter, for the school year commencing the 26 following July 1, the director of the department of education 27 shall report to the school budget review committee the average 28 costs of providing instruction for children requiring special 29 education in the categories of the weighting plan established 30 under this section , and for providing services to nonpublic 31 school students pursuant to section 256.12, subsection 2 , 32 and the director of the department of education shall make 33 recommendations to the school budget review committee for 34 needed alterations to make the weighting plan suitable for 35 -2- LSB 5840XS (2) 90 dg/jh 2/ 8

S.F. 2302 subsequent school years. The school budget review committee 1 shall establish the weighting plan for each school year and 2 shall report the plan to the director of the department of 3 education. The school budget review committee may establish 4 weights to the nearest hundredth. The school budget review 5 committee shall not alter the weighting assigned to pupils 6 in a regular curriculum, but it may increase or decrease the 7 weighting assigned to each category of children requiring 8 special education described in subsection 1, paragraphs “b” 9 through “f” , by not more than two-tenths of the weighting 10 assigned to pupils in a regular curriculum. The state board of 11 education shall adopt rules under chapter 17A to implement the 12 weighting plan for each year and to assist in identification 13 and proper indexing of each child in the state who requires 14 special education or emotional, social, and behavioral 15 supports . 16 5. The division of special education shall audit the reports 17 required in section 273.5 to determine that all children in the 18 area who have been identified as requiring special education 19 or requiring emotional, social, or behavioral supports have 20 received the appropriate special education instructional and 21 support services, and to verify the proper identification 22 of pupils in the area who will require special education 23 instructional and support services during the school year in 24 which the report is filed. The division shall certify to the 25 director of the department of management the correct total 26 enrollment of each school district in the state, determined by 27 applying the appropriate pupil weighting index to each child 28 requiring special education or requiring emotional, social, or 29 behavioral supports , as certified by the directors of special 30 education in each area. 31 7. The costs of special education instructional programs 32 and emotional, social, and behavioral supports include the 33 costs of purchase of transportation equipment approved by the 34 director of the department of education to meet the special 35 -3- LSB 5840XS (2) 90 dg/jh 3/ 8

S.F. 2302 needs of children requiring special education with the approval 1 of the director of the department of education or requiring 2 emotional, social, or behavioral supports . The state board of 3 education shall adopt rules under chapter 17A for the purchase 4 of transportation equipment pursuant to this section . 5 9. Funds generated for special education instructional 6 programs and emotional, social, and behavioral supports 7 under this chapter and chapter 257 shall not be expended for 8 modifications of school buildings to make them accessible to 9 children requiring special education or requiring emotional, 10 social, or behavioral supports . 11 Sec. 5. Section 257.6, subsection 1, paragraph a, 12 subparagraph (7), Code 2024, is amended to read as follows: 13 (7) A student attending an accredited nonpublic school or 14 receiving competent private instruction under chapter 299A , 15 who is assigned to a therapeutic classroom established in 16 accordance with section 256.25A 256.25 or is participating in a 17 program under chapter 261E , shall be counted as a shared-time 18 student in the school district in which the nonpublic school of 19 attendance is located for state foundation aid purposes. 20 Sec. 6. Section 257.16C, subsection 2, paragraph d, Code 21 2024, is amended to read as follows: 22 d. A school district’s transportation cost per pupil 23 shall be determined by dividing the school district’s actual 24 transportation cost for all children transported in all 25 school buses for a school year pursuant to section 285.1, 26 subsection 12 , less the amount of transportation costs 27 reimbursed under section 256.25A and the amount received for 28 transporting nonpublic school pupils under section 285.1 , by 29 the district’s actual enrollment for the school year, excluding 30 the shared-time enrollment for the school year as defined in 31 section 257.6 . 32 Sec. 7. Section 257.31, subsection 14, paragraph b, Code 33 2024, is amended by striking the paragraph and inserting in 34 lieu thereof the following: 35 -4- LSB 5840XS (2) 90 dg/jh 4/ 8

S.F. 2302 b. (1) If the amount certified for a school district 1 to the director of the department of management under this 2 subsection for the base year is negative, the department of 3 management shall make supplemental aid payments to school 4 districts. Supplemental aid paid to a district shall be an 5 amount necessary to offset the district’s negative balance 6 raised for special education instruction programs. 7 (2) There is appropriated from the general fund of the state 8 to the school budget review committee for each fiscal year an 9 amount as necessary to be used for supplemental aid payments to 10 school districts under subparagraph (1). 11 Sec. 8. NEW SECTION . 279.84 Regional special schools. 12 1. A school district may acquire by purchase, lease, or 13 other arrangement property located within the boundaries of a 14 different school district for purposes of operating a regional 15 special school, if the boards of directors of both school 16 districts agree to such purchase, lease, or other arrangement. 17 2. A school district that operates a regional special 18 school pursuant to subsection 1 may allow students who are not 19 residents of the school district that operates the regional 20 special school to attend the regional special school, if the 21 board of directors of the school district that operates the 22 regional special school and the board of directors of the 23 student’s resident school district agree to such arrangement. 24 3. An agreement entered into between the boards of directors 25 of school districts pursuant to subsection 1 or 2 may provide 26 for sharing the costs and expenses of any of the following: 27 a. The acquisition of property for purposes of operating a 28 regional special school. 29 b. The operation of the regional special school. 30 4. For purposes of this section, “regional special school” 31 means an attendance center at which any of the following 32 services are provided: 33 a. Services associated with a therapeutic classroom 34 established pursuant to section 256.25. 35 -5- LSB 5840XS (2) 90 dg/jh 5/ 8

S.F. 2302 b. Educational services for students participating in 1 special education programs and services under chapter 256B. 2 c. Any other services for students who require special 3 emotional, social, or behavioral supports. 4 Sec. 9. REPEAL. Section 256.25A, Code 2024, is repealed. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to students who require special emotional, 9 social, or behavioral supports in education, including 10 calculations for funding and the establishment of regional 11 special schools. 12 The bill requires school districts to certify children 13 requiring specialized emotional, social, or behavioral care 14 for special emotional, social, and behavioral instruction in 15 accordance with the requirements set up by the division of 16 special education, and to provide examinations for children 17 preliminary to making certification. The examinations 18 necessary for the certification of children requiring 19 specialized emotional, social, or behavioral care must 20 be prescribed by the state division of special education. 21 Disputes concerning a child’s eligibility for special 22 emotional, social, and behavioral instruction must be addressed 23 under rules and procedures adopted by the state board of 24 education. 25 In order to provide funds for the excess costs of instruction 26 of children requiring special education above the costs of 27 instruction of pupils in a regular curriculum, the state has 28 a special weighting plan that allows children who require 29 special education to have additional weighting when calculating 30 a school district’s funding. The bill adds to the special 31 education weighting plan children who do not require special 32 education but whose emotional, social, or behavioral needs 33 would prevent the child from academic success in a traditional 34 general education classroom. These children are assigned a 35 -6- LSB 5840XS (2) 90 dg/jh 6/ 8

S.F. 2302 weighting of 2.2, which is the current weighting of children 1 who require full-time, self-contained special education with 2 little integration into a regular classroom. The bill includes 3 children who require the use of therapeutic classrooms in 4 the category of children with special emotional, social, or 5 behavioral needs. 6 Under current law, the school budget review committee must 7 determine each year, as soon as possible after June 30, the 8 balance of funds for each school district that was raised 9 for special education instruction programs under the special 10 education weighting plan. If the balance is negative, then 11 the school budget review committee is allowed to take amounts 12 appropriated to it from certain sources related to state aid 13 paid to school districts to make supplemental aid payments 14 to the district with a negative balance equal to the state 15 aid portion of the district’s negative balance. However, a 16 school district is only eligible to receive supplemental aid 17 payments if the school district certifies to the school budget 18 review committee that for the year following the budget year 19 it will notify the school budget review committee to instruct 20 the director of the department of management to increase the 21 district’s modified supplemental amount and will fund the 22 modified supplemental amount increase either by using moneys 23 from its unexpended fund balance to reduce the district’s 24 property tax levy or by using cash reserve moneys to equal the 25 amount of the deficit that would have been property taxes and 26 any part of the state aid portion of the deficit not received 27 as supplemental aid. 28 The bill alters the funding structure for schools with 29 a negative balance of funds relating to special education 30 instruction by requiring the department of management to make 31 supplemental aid payments to the school district in an amount 32 necessary to offset the district’s negative balance raised for 33 special education instruction programs. The bill appropriates 34 from the state general fund to the school budget review 35 -7- LSB 5840XS (2) 90 dg/jh 7/ 8

S.F. 2302 committee for each fiscal year an amount of moneys as necessary 1 to be used for supplemental aid payments to school districts 2 with negative special education fund balances. 3 The bill authorizes a school district to acquire property 4 located within the boundaries of a different school district 5 for purposes of operating a regional special school if the 6 boards of directors of both school districts agree to such 7 acquisition. The division provides that a school district that 8 operates such a regional special school may allow students who 9 are not residents of the school district that operates the 10 regional special school to attend the regional special school 11 if the board of directors of the school district that operates 12 the regional special school and the board of directors of the 13 student’s resident school district agree to such arrangement. 14 Additionally, the division provides that an agreement entered 15 into between the boards of directors of school districts under 16 these provisions may provide for sharing the costs and expenses 17 of the acquisition of property for, and operation of, the 18 regional special school. 19 The division defines “regional special school” to mean 20 an attendance center at which services associated with a 21 therapeutic classroom, educational services for students 22 participating in special education programs and services, or 23 any other services for students who require special supports 24 for behavioral issues, are provided. 25 The bill repeals Code section 256.25A (therapeutic classroom 26 —— claims) which allows school districts to submit claims 27 to the department of education for the costs of providing 28 therapeutic classroom services and related transportation 29 services. 30 The bill makes conforming changes. 31 -8- LSB 5840XS (2) 90 dg/jh 8/ 8