HF 2358 (LSB 5279HV (1) 91)

HOUSE FILE 2358

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO HSB 604)

A BILL FOR

An Act authorizing community-based providers to directly participate in the statewide preschool program for four-year-old children.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 256C.1, subsection 1, Code 2026, is amended to read as follows:
   1.  “Approved local program” means a school district’s program or community-based provider’s program for four-year-old children approved by the department of education to provide high quality high-quality preschool instruction.
    Sec. 2.  Section 256C.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  “Community-based provider approved to directly participate in the preschool program” means a community-based provider that meets the community-based provider requirements under section 256C.3 and has been approved by the department to directly participate in the preschool program. “Community-based provider approved to directly participate in the preschool program” does not mean a community-based provider that partners with a school district’s approved local program.
    Sec. 3.  Section 256C.3, subsection 1, paragraph b, Code 2026, is amended to read as follows:
   b.  If space and funding are available, including funding from another school district account or fund from which preschool program expenditures are authorized by law, a school district approved to participate in the preschool program or community-based provider approved to directly participate in the preschool program may enroll and pay the cost of attendance for a younger or older child in the preschool program; however, the child shall not be counted for state funding purposes.
    Sec. 4.  Section 256C.3, subsection 2, paragraph a, subparagraph (1), Code 2026, is amended to read as follows:
   (1)  The individual is either employed by or under contract with the school district, or with the community-based provider approved to directly participate in the preschool program, that is implementing the program.
    Sec. 5.  Section 256C.3, subsection 3, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   The state board shall adopt rules to further define the following preschool program requirements which shall be used to determine whether or not a local program implemented by a school district approved to implement the preschool program or a community-based provider directly approved to implement the preschool program qualifies as an approved local program:
    Sec. 6.  Section 256C.3, subsection 3, paragraph h, Code 2026, is amended to read as follows:
   h.  Provision for ensuring that children receiving care from other child care arrangements can participate in the preschool program with minimal disruption due to transportation and movement from one site to another. The children participating in the preschool program may be transported by the school district or community provider to activities associated with the program along with other children.
    Sec. 7.  Section 256C.3, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  Community-based provider requirements.  The state board shall adopt rules to further define the following requirements of community-based providers approved to directly participate in the preschool program in implementing the preschool program:
   a.  Methods of demonstrating readiness to implement high-quality instruction in the local program shall be identified.
   b.  A community-based provider shall participate in data collection and performance measurement processes and reporting as defined by rule.
   c.  Professional development for community-based provider preschool teachers shall be addressed in the community-based provider’s professional development plan.
    Sec. 8.  Section 256C.3, subsection 5, paragraphs a, b, and d, Code 2026, are amended to read as follows:
   a.  The department shall implement an application and selection process for school district participation and community-based provider participation in the preschool program that includes but is not limited to the enrollment requirements provided under section 256C.4.
   b.  The department shall track the progress of students served by a school district preschool program or community-based provider preschool program and the students’ performance in elementary and secondary education.
   d.  The state board, in collaboration with the department, shall ensure that the administrative rules adopted to support the preschool program emphasize that children’s access to the program is voluntary, that the preschool foundation aid provided to a school district or a community-based provider is provided based upon the enrollment of eligible students in the school district’s or community-based provider’s local program regardless of whether an eligible student is a resident of the school district, and that agreements entered into by a school district for the provision of programming in settings other than the school district’s facilities are between the school district and the private provider.
    Sec. 9.  Section 256C.4, subsection 1, Code 2026, is amended to read as follows:
   1.  General State funding for school district approved to participate in the preschool program.
   a.  State funding provided under the preschool program to school districts shall be based upon the enrollment of eligible students in the preschool programming provided by a school district approved to participate in the preschool program.
   b.  A school district approved to participate in the preschool program may authorize expenditures for the district’s preschool programming from any of the revenue sources available to the district from the sources listed in chapter 298A, provided the expenditures are within the uses permitted for the revenue source. In addition, the use of the revenue source for preschool or prekindergarten programming must have been approved prior to any expenditure from the revenue source for the district’s approved local program.
   c.  Funding provided under the preschool program is intended to supplement, not supplant, existing public funding for preschool programming.
   d.  Preschool foundation aid funding shall not be commingled with the other state aid payments made under section 257.16 to a school district and shall be accounted for by the local school district separately from the other state aid payments. Preschool foundation aid payments made to school districts are miscellaneous income for purposes of chapter 257. A school district shall maintain a separate listing within its budget for preschool foundation aid payments received and expenditures made. A school district shall certify to the department of education that preschool foundation aid funding received by the school district was used to supplement, not supplant, moneys otherwise received and used by the school district for preschool programming.
   e.  Preschool foundation aid funding shall not be used for the costs of constructing a facility in connection with an approved local program. Preschool foundation aid funding may be used by approved local programs and community providers for any purpose determined by the board of directors of the school district to meet standards for high-quality preschool instruction and for purposes that directly or indirectly benefit students enrolled in the approved local program, including but not limited to professional development for preschool teachers, instructional equipment and supplies, material and equipment designed to develop pupils’ large and small motor skills, translation services, playground equipment and repair costs, food and beverages used by children in the approved local program, safety equipment, facility rental fees, and for other direct costs that enhance the approved local program, including by contracting with community partners for any such services. Preschool foundation aid funding may be used by approved local programs for the costs of transportation involving children participating in the preschool program. The costs of transporting other children associated with the preschool program or transported as provided in section 256C.3, subsection 3, paragraph “h”, may be prorated by the school district. Preschool foundation aid funding received by an approved local program that remains unexpended and unobligated at the end of a fiscal year beginning on or after July 1, 2017, shall be used to build the approved local program’s preschool program capacity in the next succeeding fiscal year excluding that portion of such unexpended and unobligated funding that the school district authorizes for transfer for deposit in the school district’s flexibility account established under section 298A.2, subsection 2, if the statutory requirements for the use of such funding are met. For purposes of determining whether a school district has authority to transfer preschool foundation aid funding for deposit in the school district’s flexibility account established under section 298A.2, subsection 2, the school district must have provided preschool programming during the fiscal year for which funding remains unexpended and unobligated to all eligible students for whom a timely application for enrollment was submitted.
   f.  The receipt of funding by a school district for the purposes of this chapter, the need for additional funding for the purposes of this chapter, or the enrollment count of eligible students under this chapter shall not be considered to be unusual circumstances, create an unusual need for additional funds, or qualify under any other circumstances that may be used by the school budget review committee to grant supplemental aid to or establish a modified supplemental amount for a school district under section 257.31.
   g.  For the fiscal year beginning July 1, 2015, and each succeeding fiscal year, of the amount of preschool foundation aid received by a school district for a fiscal year in accordance with section 257.16, not more than five percent may be used by the school district for administering the district’s approved local program. Outreach activities and rent for facilities not owned by the school district are permissive uses of the administrative funds.
   h.  For the fiscal year beginning July 1, 2015, and each succeeding fiscal year, of the amount of preschool foundation aid received by a school district for a fiscal year in accordance with section 257.16, not less than ninety-five percent of the per pupil amount shall be passed through to a community-based provider for each pupil enrolled in the district’s approved local program. For the fiscal year beginning July 1, 2015, and each succeeding fiscal year, not more than ten percent of the amount of preschool foundation aid passed through to a community-based provider may be used by the community-based provider for administrative costs. The costs of outreach activities and rent for facilities not owned by the school district are permissive administrative costs. The costs of transportation involving children participating in the preschool program and other children may be prorated.
    Sec. 10.  Section 256C.4, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  State preschool funding for community-based providers approved to directly participate in the preschool program.
   a.  State preschool funding shall not be used for the costs of constructing a facility in connection with an approved local program. Preschool foundation aid funding may be used by community-based providers for any purpose determined by the community-based provider to meet standards for high-quality preschool instruction and for purposes that directly or indirectly benefit students enrolled in the approved local program, including but not limited to professional development for preschool teachers, instructional equipment and supplies, material and equipment designed to develop pupils’ large and small motor skills, translation services, playground equipment and repair costs, food and beverages used by children in the approved local program, safety equipment, facility rental fees, and for other direct costs that enhance the approved local program, including by contracting with other community partners for any such services. State preschool funding may be used by approved local programs for the costs of transportation involving children participating in the preschool program. Preschool foundation aid funding received by a community-based provider approved to directly participate in the preschool program that remains unexpended and unobligated at the end of a fiscal year shall be used to build the community-based provider’s capacity in the next succeeding fiscal year.
   b.  For the fiscal year beginning July 1, 2026, and each succeeding fiscal year, of the amount of state preschool funding received by a community-based provider approved to directly participate in the preschool program for a fiscal year, not more than five percent may be used by the community-based provider for administering the approved local program. Outreach activities and rent for facilities not owned by the community-based provider are permissive uses of the administrative funds.
    Sec. 11.  Section 256C.4, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  To be included as an eligible student in the enrollment count of the preschool programming provided by a school district approved to participate in the preschool program or a community-based provider approved to directly participate in the preschool program, a child must be four years of age by September 15 in the base year and attending the school district’s or community-based provider’s approved local program.
    Sec. 12.  Section 256C.5, subsection 1, paragraphs c and d, Code 2026, are amended to read as follows:
   c.  “Preschool budget enrollment” means the figure that is equal to fifty percent of the actual enrollment of eligible students in the preschool programming provided by a school district approved to participate in the preschool program or a community-based provider approved to directly participate in the preschool program on October 1 of the base year, or the first Monday in October if October 1 falls on a Saturday or Sunday.
   d.  “Preschool foundation aid” means the product of the regular program state cost per pupil for the budget year multiplied by the school district’s preschool budget enrollment or the community-based provider’s preschool budget enrollment.
    Sec. 13.  Section 256C.5, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  Preschool foundation aid community-based provider amount.  For the initial school year for which a community-based provider approved to directly participate in the preschool program receives that approval and implements the preschool program, the preschool foundation aid payable to the community-based provider is the product of the regular program state cost per pupil for the school year multiplied by fifty percent of the community-based provider’s eligible student enrollment on the date in the school year determined by rule. For budget years subsequent to the initial year for which a community-based provider approved to directly participate in the preschool program receives that initial approval and implements the preschool program, the preschool foundation aid is the same as calculated pursuant to subsection 1. The funding for the preschool foundation aid payable to the community-based provider shall be paid from the appropriation made in section 257.16. Continuation of a community-based provider’s participation in the preschool program for a second or subsequent budget year is subject to the approval of the department based upon the community-based provider’s compliance with accountability provisions and the department’s on-site review of the community-based provider’s implementation of the preschool program.
    Sec. 14.  Section 256C.5, subsection 3, Code 2026, is amended to read as follows:
   3.  Aid payments.
   a.  Preschool foundation aid shall be paid as part of the state aid payments made to school districts in accordance with section 257.16.
   b.  Preschool foundation aid paid directly to community-based providers shall be paid to the community-based provider in monthly installments beginning on September 15 of a budget year and ending on or about June 15 of the budget year as determined by the department of management, taking into consideration the relative budget and cash position of the state resources.
    Sec. 15.  EMERGENCY RULES.  The state board of education may adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to implement the provisions of this Act and the rules shall be effective immediately upon filing unless a later date is specified in the rules. Any rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill authorizes community-based providers to directly participate in the statewide preschool program for four-year-old children.
   Under current law, only school districts that meet certain requirements established by the state board of education are able to participate in the statewide preschool program for four-year-old children established pursuant to Code chapter 256C, although school districts may contract with community-based providers. The bill authorizes community-based providers to directly participate in the statewide preschool program for four-year-old children established pursuant to Code chapter 256C by applying with the department of education to implement a preschool program. The state board is required to adopt rules to further define the requirements of community-based providers implementing the preschool program.
   Under current law, state funding provided under the statewide preschool program for four-year-old children is provided to school districts based upon the number of eligible students enrolled in the preschool programming provided by the school district. Also under current law, if the school district contracts with a community-based provider, state funding passes from the school district to the community-based provider. The bill allows a community-based provider approved to directly participate in the preschool program to be paid preschool foundation aid directly in the same manner as a school district. The bill establishes the amount of preschool foundation aid that is payable to such a community-based provider for the initial school year for which the community-based provider is approved to directly participate in the preschool program, and for subsequent school years.
   The bill makes conforming changes.