House File 2712 - Introduced HOUSE FILE 2712 BY COMMITTEE ON HEALTH AND HUMAN SERVICES (SUCCESSOR TO HSB 623) A BILL FOR An Act relating to early childhood and family services, 1 including the creation of an early childhood and family 2 services system, state child care assistance for the child 3 care workforce, making appropriations, and including 4 effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5557HV (2) 91 dg/ko

H.F. 2712 DIVISION I 1 EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM 2 Section 1. NEW SECTION . 234A.1 Definitions. 3 For the purposes of this chapter, unless the context 4 otherwise requires: 5 1. “Community resources” means locally focused, 6 strength-based programs and supports that aim to enhance family 7 functioning and resilience, promote child development and 8 safety, and prevent future involvement with child protective 9 services or the juvenile justice system. 10 2. “Department” means the department of health and human 11 services. 12 3. “Early childhood and family services district” or “ECFS 13 district” means a health and human services district utilized 14 for the purpose of administering the ECFS system. 15 4. “Early childhood and family services district advisory 16 council” or “ECFS district advisory council” means an advisory 17 council established under section 234A.3. 18 5. “Early childhood and family services district plan” or 19 “ECFS district plan” means a plan developed by the department 20 to outline the ECFS system infrastructure of a district and 21 the programs and services intended to be provided within that 22 district. 23 6. “Early childhood and family services state plan” or “ECFS 24 state plan” means the plan developed by the department that 25 describes the key components of the state’s ECFS system. 26 7. “Early childhood and family services system” or “ECFS 27 system” means the system established in section 234A.2. 28 8. “Early childhood and family services system fund” or “ECFS 29 system fund” means the fund created in section 234A.6. 30 9. “Early intervention strategies” means services and 31 supports designed to proactively identify and address risk 32 factors and includes services that aim to strengthen families, 33 promote healthy development, and reduce the likelihood of abuse 34 or neglect by providing timely, targeted assistance to children 35 -1- LSB 5557HV (2) 91 dg/ko 1/ 24

H.F. 2712 and caregivers through the ECFS system. 1 10. “Evidence-based” means practices, programs, and policies 2 grounded in the best available research and data, and that have 3 been scientifically tested and shown to be effective through 4 rigorous evaluation. 5 11. “Family support services” include group-based parent 6 education and home visiting programs designed to strengthen 7 protective factors including parenting skills, increase 8 parental knowledge of child development, and increase family 9 functioning and problem-solving skills. Family support 10 services may be used as an early intervention strategy to 11 improve birth outcomes, parental knowledge, family economic 12 success, the home learning environment, family and child 13 involvement with others, and coordination with other community 14 resources. Family support services may have a specific focus 15 on preventing child maltreatment or ensuring children are safe, 16 healthy, and ready to succeed in school. 17 12. “Health and human services district” means the same as 18 defined in section 217.1. 19 13. “HOPES-HFI program” means the healthy opportunities for 20 parents to experience success – healthy families Iowa program 21 established in section 234A.5. 22 14. “Ongoing family and community resources” means a 23 continuum of sustained, accessible, and family-centered 24 resources provided through the ECFS system that help families 25 meet their needs, strengthen protective factors, and prevent 26 child abuse and neglect. 27 15. “Primary prevention strategies” means a comprehensive 28 set of services and supports provided through the ECFS system 29 that are designed to strengthen families, promote healthy child 30 development, and prevent adverse outcomes before they occur. 31 These activities focus on addressing the underlying social, 32 economic, and environmental conditions that place children and 33 families at risk, such as poverty, social isolation, and lack 34 of access to quality early care and education. 35 -2- LSB 5557HV (2) 91 dg/ko 2/ 24

H.F. 2712 16. “Protective factor” means an inherent strength, 1 resource, or capacity of a family, or a resource that helps a 2 family thrive, buffer against stress, and reduce the likelihood 3 of child abuse, neglect, or other poor outcome. 4 17. “Strength-based” means an approach that focuses 5 on identifying and building upon the inherent strengths, 6 resources, and capacities of a family to support the family’s 7 growth, resilience, and well-being. 8 Sec. 2. NEW SECTION . 234A.2 Early childhood and family 9 services system —— department powers and duties. 10 1. An early childhood and family services system is 11 established under the control of the department for the 12 purposes of implementing a statewide array of primary 13 prevention strategies, early intervention strategies, and 14 ongoing family and community resources for families and their 15 children under nineteen years of age. 16 2. The ECFS system shall be administered in a manner to 17 maximize funding opportunities, interagency collaboration, and 18 integration of activities and services that support positive 19 outcomes for children and families. 20 3. The ECFS system shall support equitable statewide access 21 to all services, supports, and other resources offered through 22 the ECFS system that, at a minimum, shall include all of the 23 following: 24 a. Evidence-based primary prevention strategies, including 25 family support services, designed to assist families in 26 establishing healthy, successful futures. 27 b. Tailored early intervention strategies for children and 28 families to ensure long-term well-being, including economic 29 self-sufficiency. 30 c. Ongoing family and community resources for children and 31 families to address the root causes of child abuse and neglect 32 and enhance protective factors. 33 d. Specific service components including early childhood 34 services, evidence-based family support services, and community 35 -3- LSB 5557HV (2) 91 dg/ko 3/ 24

H.F. 2712 resources. 1 4. To the extent funding is available, the department 2 shall do all of the following to develop and administer the 3 ECFS system and carry out the department’s duties under this 4 chapter: 5 a. Plan, establish, and maintain primary prevention 6 strategies, early intervention strategies, and ongoing family 7 and community resources. 8 b. (1) Develop an early childhood and family services state 9 plan that is consistent with the department’s agency strategic 10 plan adopted pursuant to section 8E.204, and the state health 11 improvement plan developed under section 217.17. 12 (2) When developing the ECFS state plan, the department 13 shall do all of the following: 14 (a) Collaborate with stakeholders including but not 15 limited to experienced public health and medical providers, law 16 enforcement, educators, the early childhood Iowa state board, 17 the early childhood Iowa area boards, and organizations that 18 represent populations including but not limited to children to 19 be served by the ECFS system. 20 (b) Publish the proposed ECFS state plan on the department’s 21 internet site and allow the public to review and comment on the 22 proposed ECFS state plan prior to adoption. 23 c. Administer the ECFS system in each ECFS district based on 24 early childhood and family services district plans. 25 d. Develop ECFS district plans in collaboration with ECFS 26 system partners and stakeholders. 27 e. Establish ECFS district advisory councils pursuant to 28 section 234A.3. 29 f. Coordinate administration of each ECFS district plan with 30 federal and state resources. 31 g. Enter into contracts as necessary to perform activities, 32 and provide services, supports, and other resources in 33 accordance with each ECFS district plan. 34 h. Coordinate district activities with other state agencies 35 -4- LSB 5557HV (2) 91 dg/ko 4/ 24

H.F. 2712 and state-funded initiatives that support positive outcomes for 1 children and families. 2 i. Administer and distribute federal aid received, and state 3 appropriations, grants, and other moneys deposited into the 4 early childhood and family services system fund. 5 j. Oversee, provide technical assistance to, and monitor 6 department contractors to ensure compliance with ECFS district 7 plans. 8 k. Establish and maintain data collection and management 9 information systems to identify, collect, and analyze service 10 outcomes and performance data to address the needs of clients, 11 providers, the department, and ECFS system programs. 12 l. Collect, maintain, monitor, analyze, and utilize 13 information including but not limited to ECFS client records 14 and programmatic, state, and national data, engage in studies 15 and analyses, and gather relevant statistics to understand 16 emerging needs and effectively deploy information, resources, 17 and technical assistance in response. 18 m. Adopt rules pursuant to chapter 17A to administer this 19 chapter. 20 n. Take any other necessary actions to execute the 21 department’s duties under this chapter or maintain compliance 22 with federal requirements. 23 5. The department may do all of the following to develop and 24 administer the ECFS system: 25 a. Cooperate with any state agency, political subdivision, 26 or federal governmental agency to apply for grants. 27 b. Solicit and accept for use any gift of money, by will or 28 otherwise, and any grant of money or services from the federal 29 government, the state, a political subdivision of the state or 30 federal government, or a private source. 31 Sec. 3. NEW SECTION . 234A.3 Early childhood and family 32 services district advisory councils. 33 1. The department shall establish an early childhood 34 and family services district advisory council in each ECFS 35 -5- LSB 5557HV (2) 91 dg/ko 5/ 24

H.F. 2712 district. The department shall develop policies and procedures 1 for the operational functions of each ECFS district advisory 2 council. 3 2. An ECFS district advisory council shall consist of ten 4 members appointed by the department. Individuals eligible 5 for appointment include but are not limited to all of the 6 following: 7 a. Elected public officials who currently hold office within 8 the ECFS district. 9 b. Individuals who have experience or expertise related 10 to health, education, domestic assault response, or abuse 11 response. 12 c. Individuals who are representative of the populations 13 served in the ECFS district advisory council’s ECFS district. 14 d. Individuals who represent the faith community or 15 community partners in the ECFS district advisory council’s ECFS 16 district. 17 3. An ECFS district advisory council shall do all of the 18 following: 19 a. Identify opportunities and address challenges based 20 on updates received from the department relating to the 21 implementation of the ECFS district plan for the ECFS district 22 advisory council’s ECFS district. 23 b. Provide feedback to the department while the department 24 is developing ECFS system policies. 25 c. Advise the department on how to best provide families 26 access to primary prevention strategies, early intervention 27 strategies, and ongoing family and community resources 28 throughout the ECFS district advisory council’s ECFS district. 29 4. An ECFS district advisory council shall perform the 30 duties required under this section regardless of whether any 31 seat on the ECFS district advisory council is vacant. 32 Sec. 4. NEW SECTION . 234A.4 Data collection and use. 33 1. The department shall perform all of the following actions 34 related to ECFS system data: 35 -6- LSB 5557HV (2) 91 dg/ko 6/ 24

H.F. 2712 a. (1) Collect, maintain, monitor, analyze, and utilize 1 data, including but not limited to child welfare data, Medicaid 2 data, ECFS system data, and other data depicting the status of 3 children and families in the state, as necessary to issue cost 4 estimates for serving populations, make and receive payments, 5 conduct operations, and perform ECFS system activities. 6 (2) When performing duties under this paragraph, the 7 department shall maintain compliance with applicable federal 8 and state privacy laws to ensure the confidentiality and 9 integrity of individually identifiable data. 10 (3) The department shall periodically assess the status of 11 the department’s compliance with subparagraph (2) to ensure 12 that data collected and maintained by the department under this 13 paragraph is protected. 14 b. To the extent possible, establish a record for each 15 individual receiving publicly funded ECFS system services. 16 Each record established under this paragraph shall include a 17 unique client identifier for the purposes of identifying and 18 tracking the individual’s record. 19 c. Consult with department contractors and other ECFS system 20 stakeholders on an ongoing basis relating to the administration 21 of the ECFS system, including but not limited to reviewing 22 trends and outcomes as indicators for improving or modifying 23 administration of the ECFS system. 24 d. Engage with entities that maintain information the 25 department is required to collect pursuant to this section to 26 integrate data relating to individuals receiving ECFS system 27 services. 28 e. Engage with entities that maintain general population 29 data relating to the ECFS system to develop action plans, 30 create projections relating to a population’s ECFS system 31 needs, develop ECFS system policies, and otherwise perform 32 activities as necessary to support families in achieving a 33 healthy, successful future. 34 2. The department shall ensure that public and private 35 -7- LSB 5557HV (2) 91 dg/ko 7/ 24

H.F. 2712 agencies, organizations, and individuals that operate within 1 the ECFS system use uniform methods to maintain statistical 2 information relating to ECFS system outcomes and performance. 3 Sec. 5. NEW SECTION . 234A.5 Healthy families programs —— 4 HOPES-HFI program. 5 1. The department may establish the HOPES-HFI program to 6 provide services to families and children during a child’s 7 prenatal through preschool years. If established, the 8 HOPES-HFI program shall do all of the following: 9 a. Promote optimal child health and development. 10 b. Improve family coping skills and functioning. 11 c. Promote positive parenting skills and intrafamilial 12 interaction. 13 d. Prevent child abuse, child neglect, infant mortality, and 14 infant morbidity. 15 2. The department shall administer the HOPES-HFI program, 16 in whole or in part, by contracting with local organizations 17 that use evidence-based home visiting models. 18 Sec. 6. NEW SECTION . 234A.6 Early childhood and family 19 services system fund. 20 1. An early childhood and family services system fund 21 is created in the state treasury under the control of the 22 department and consisting of any moneys appropriated to the 23 department for the ECFS system fund’s purposes by the general 24 assembly and any other moneys available and obtained or 25 accepted by the department for deposit in the ECFS system fund. 26 The ECFS system fund shall be used to implement and administer 27 the ECFS system. 28 2. Moneys in the ECFS system fund are appropriated to the 29 department for the purposes of implementing and administering 30 the ECFS system. 31 3. Notwithstanding section 8.33, moneys appropriated in 32 this section that remain unencumbered or unobligated at the 33 close of a fiscal year shall not revert but shall remain 34 available for expenditure for the purposes designated. 35 -8- LSB 5557HV (2) 91 dg/ko 8/ 24

H.F. 2712 4. Notwithstanding section 12C.7, subsection 2, interest or 1 earnings on moneys in the ECFS system fund shall be credited 2 to the ECFS system fund. 3 Sec. 7. REPEAL. Section 135.106, Code 2026, is repealed. 4 Sec. 8. EFFECTIVE DATE. The sections of this division of 5 this Act enacting sections 234A.1 through 234A.5 take effect 6 July 1, 2027. 7 Sec. 9. EFFECTIVE DATE. The section of this division of 8 this Act enacting section 234A.6, being deemed of immediate 9 importance, takes effect upon enactment. 10 DIVISION II 11 DECATEGORIZATION INITIATIVE 12 Sec. 10. Section 235.7, subsection 2, Code 2026, is amended 13 to read as follows: 14 2. Membership. The department may authorize the governance 15 boards of decategorization of child welfare and juvenile 16 justice funding projects established under section 232.188 to 17 appoint the transition committee membership and may utilize 18 the boundaries of decategorization projects to establish 19 the service areas for transition committees. The committee 20 A committee’s membership may include but is not limited to 21 department staff involved with foster care, child welfare, 22 and adult services, juvenile court services staff, staff 23 involved with county general assistance or emergency relief 24 under chapter 251 or 252 , school district and area education 25 agency staff involved with special education, and a child’s 26 court appointed special advocate, guardian ad litem, service 27 providers, and other persons knowledgeable about the child. 28 Sec. 11. Section 237A.1, subsection 2, paragraph j, 29 subparagraph (2), Code 2026, is amended by striking the 30 subparagraph. 31 Sec. 12. Section 249A.26, subsection 5, Code 2026, is 32 amended by striking the subsection. 33 Sec. 13. Section 256I.4, subsection 6, Code 2026, is amended 34 by striking the subsection. 35 -9- LSB 5557HV (2) 91 dg/ko 9/ 24

H.F. 2712 Sec. 14. REPEAL. Section 232.188, Code 2026, is repealed. 1 DIVISION III 2 CHILD ABUSE PREVENTION PROGRAM 3 Sec. 15. Section 144.13A, subsection 5, paragraph a, Code 4 2026, is amended to read as follows: 5 a. Ten dollars of each registration fee is appropriated and 6 shall be used for primary and secondary child abuse prevention 7 programs pursuant to section 235A.1 , and ten dollars of each 8 registration fee is appropriated and shall be used for the 9 congenital and inherited disorders central registry established 10 pursuant to section 136A.6 . Notwithstanding section 8.33 , 11 moneys appropriated in this paragraph that remain unencumbered 12 or unobligated at the close of the fiscal year shall not revert 13 but shall remain available for expenditure for the purposes 14 designated until the close of the succeeding fiscal year, and 15 shall not be transferred, used, obligated, appropriated, or 16 otherwise encumbered except as provided in this paragraph. 17 Sec. 16. Section 422.12K, Code 2026, is amended to read as 18 follows: 19 422.12K Income tax checkoff for child abuse prevention 20 program fund . 21 1. A person who files an individual or a joint income tax 22 return with the department of revenue under section 422.13 may 23 designate one dollar or more to be paid to the child abuse 24 prevention program early childhood and family services system 25 fund created in section 235A.2 234A.6, to be used for the 26 purpose of child abuse prevention . If the refund due on the 27 return or the payment remitted with the return is insufficient 28 to pay the additional amount designated by the taxpayer to 29 the child abuse prevention program early childhood and family 30 services system fund, the amount designated shall be reduced to 31 the remaining amount remitted with the return. The designation 32 of a contribution to the child abuse prevention program early 33 childhood and family services system fund under this section 34 is irrevocable. 35 -10- LSB 5557HV (2) 91 dg/ko 10/ 24

H.F. 2712 2. The director of revenue shall draft the income tax form 1 to allow the designation of contributions to the child abuse 2 prevention program early childhood and family services system 3 fund on the tax return. The department of revenue, on or 4 before January 31, shall transfer the total amount designated 5 on the tax return forms due in the preceding calendar year to 6 the child abuse prevention program early childhood and family 7 services system fund. However, before a checkoff pursuant 8 to this section shall be permitted, all liabilities on the 9 books of the department and accounts identified as owing under 10 section 421.65 shall be satisfied. 11 3. The department of health and human services may authorize 12 payment of moneys from the child abuse prevention program early 13 childhood and family services system fund for the purpose 14 of child abuse prevention in accordance with section 235A.2 15 234A.6 . 16 4. The department of revenue shall adopt rules to administer 17 this section . 18 5. This section is subject to repeal under section 422.12E . 19 Sec. 17. REPEAL. Sections 235A.1, 235A.2, and 235A.3, Code 20 2026, are repealed. 21 Sec. 18. CHILD ABUSE PREVENTION PROGRAM FUND —— TRANSFER 22 OF MONEYS. Any unencumbered or unobligated moneys remaining 23 in the child abuse prevention program fund created in section 24 235A.2, on June 30, 2026, shall be transferred to the early 25 childhood and family services system fund created in section 26 234A.6, as enacted in this Act. 27 Sec. 19. EFFECTIVE DATE. This division of this Act, being 28 deemed of immediate importance, takes effect upon enactment. 29 DIVISION IV 30 TRANSITION PROVISIONS 31 Sec. 20. EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM. 32 1. For purposes of this division: 33 a. The following mean the same as defined in section 234A.1 34 as enacted in division I of this Act: 35 -11- LSB 5557HV (2) 91 dg/ko 11/ 24

H.F. 2712 (1) “Department”. 1 (2) “Early intervention strategies”. 2 (3) “ECFS district plan”. 3 (4) “ECFS state plan”. 4 (5) “ECFS system”. 5 (6) “ECFS system fund”. 6 (7) “Ongoing family and community resources”. 7 (8) “Primary prevention strategies”. 8 b. “Early childhood Iowa area”, “early childhood Iowa area 9 board”, and “early childhood Iowa area state board” mean the 10 same as defined in section 256I.1. 11 c. “Early childhood Iowa initiative” means the early 12 childhood Iowa initiative described in section 256I.2. 13 d. “Transition period” means the period beginning on the 14 date of enactment of this division of this Act and concluding 15 on June 30, 2027. 16 2. There is created an early childhood and family services 17 system under the control of the department. Beginning July 18 1, 2027, the department shall be responsible for implementing 19 and maintaining a statewide system of primary prevention 20 strategies, early intervention strategies, and ongoing family 21 and community resources through the ECFS system. 22 3. During the transition period, the department may 23 exercise all policymaking functions and regulatory powers as 24 necessary to establish the ECFS system as if the sections of 25 division I of this Act enacting sections 234A.1 through 234A.5 26 were enacted. 27 4. The department shall perform all the following duties by 28 the conclusion of the transition period: 29 a. Adopt rules pursuant to chapter 17A as necessary to 30 establish, implement, and administer the ECFS system. 31 b. Establish policies as necessary to efficiently 32 establish, implement, and administer the ECFS system. 33 c. Prepare forms necessary to establish, implement, and 34 administer the ECFS system. 35 -12- LSB 5557HV (2) 91 dg/ko 12/ 24

H.F. 2712 d. Prepare an ECFS state plan. 1 e. Develop ECFS district plans. 2 f. Develop a plan for the transition of early childhood and 3 family services to the ECFS system. 4 g. Execute contracts as necessary to establish, implement, 5 and administer the ECFS system. 6 h. Ensure that individuals currently receiving primary 7 prevention strategies, early intervention strategies, services, 8 and supports or ongoing family and community resources under 9 the purview of the department, or home visiting services 10 provided through the early childhood Iowa initiative, have 11 uninterrupted continuity of care. 12 i. Submit a report to the general assembly no later 13 than January 15, 2027, that details the administrative and 14 operational costs to establish, implement, and administer the 15 ECFS system. 16 j. Establish contractual rights, privileges, and 17 responsibilities as necessary to establish, implement, and 18 administer the ECFS system. 19 k. Develop a plan to transition oversight and 20 accountability for home visiting services currently funded by 21 the early childhood Iowa initiative to the ECFS system. 22 l. Work with a cohort of early childhood Iowa area directors 23 designated by the association of early childhood Iowa area 24 boards and advocates, and the early childhood Iowa state 25 board, to develop a plan to modernize the early childhood Iowa 26 initiative. The plan shall include the frequency of work 27 sessions, engagement opportunities for early childhood Iowa 28 partners, and mutually agreed upon deliverables including 29 revisions to chapter 256I. 30 5. If the department determines that a federal waiver 31 or authorization is necessary to administer any provision of 32 this division of this Act, or to effectuate the ECFS system 33 by the conclusion of the transition period, the department 34 shall timely request the federal waiver or authorization. 35 -13- LSB 5557HV (2) 91 dg/ko 13/ 24

H.F. 2712 Notwithstanding any other effective date to the contrary, a 1 provision of this division of this Act that the department 2 determines requires a federal waiver or authorization shall be 3 effective only upon receipt of federal approval for the waiver 4 or authorization. 5 6. a. All debts, claims, or other liabilities owed to 6 an early childhood Iowa area or an early childhood Iowa area 7 board due to home visiting services rendered pursuant to 8 chapter 256I, Code 2026, at the conclusion of the transition 9 period shall remain due and owing after the transition period 10 concludes. 11 b. After the transition period concludes, all fiscal agents 12 contracted with an early childhood Iowa area board shall 13 collect outstanding debts, claims, or other liabilities owed 14 to an early childhood Iowa area or an early childhood Iowa 15 area board for home visiting services pursuant to chapter 256I 16 provided or rendered before the transition period concluded. 17 7. With input from appropriate stakeholders, the department 18 shall identify each home visiting services contract that will 19 be impacted by divisions I through V of this Act. On or before 20 June 30, 2027, each party to a contract identified by the 21 department under this subsection shall exercise the option, if 22 permitted under the terms of the contract, to terminate the 23 contract. Contracts identified under this subsection that do 24 not provide for termination shall not be renewed or extended at 25 the end of the current contract term. 26 8. Unless otherwise provided in this division of this Act, 27 an early childhood Iowa area, an early childhood Iowa area 28 board, an early childhood Iowa area director, or any agent 29 of an early childhood Iowa area or early childhood Iowa area 30 board, and any subdivision of the state, shall not enter into, 31 renew, or extend a home visiting services contract related to 32 the early childhood Iowa initiative or related activities if 33 the term of the contract would extend past, or the deliverables 34 under the contract would be provided after, June 30, 2027. 35 -14- LSB 5557HV (2) 91 dg/ko 14/ 24

H.F. 2712 Sec. 21. EFFECTIVE DATE. This division of this Act, being 1 deemed of immediate importance, takes effect upon enactment. 2 DIVISION V 3 HEALTH AND HUMAN SERVICES DISTRICTS 4 Sec. 22. Section 217.1, Code 2026, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 4. “Health and human services district” or 7 “HHS district” means a geographic, multicounty area designated 8 by the department under section 217.1B for statewide program 9 and service delivery. 10 Sec. 23. NEW SECTION . 217.1B Health and human services 11 districts. 12 1. The department shall divide the entirety of the state 13 into designated health and human services districts. The 14 initial HHS districts shall be the same as the behavioral 15 health districts designated pursuant to section 225A.4, Code 16 2026, and that exist on the effective date of this division 17 of this Act. The department shall review the designated HHS 18 districts at least once every seven consecutive fiscal years. 19 2. a. The department may modify a designated HHS district. 20 When modifying a designated HHS district, the department shall 21 consider all of the following: 22 (1) City and county boundaries. 23 (2) The population size that can be effectively served in a 24 specific area. 25 (3) Areas of high need for services. 26 (4) Patterns various populations exhibit when accessing or 27 receiving services. 28 b. Notwithstanding chapter 17A, the manner in which 29 the modification of an HHS district is made, including the 30 determination of boundaries for a modified HHS district, shall 31 not be subject to judicial review. 32 3. The department shall adopt rules pursuant to chapter 17A 33 to administer this section. 34 Sec. 24. CONTINGENT EFFECTIVE DATE. This division of this 35 -15- LSB 5557HV (2) 91 dg/ko 15/ 24

H.F. 2712 Act takes effect July 1, 2026, unless the sections of 2026 Iowa 1 Acts, LSB 5558 XD, or successor legislation, amending section 2 217.1 and enacting section 217.1B are enacted on or before July 3 1, 2026. 4 DIVISION VI 5 CONFORMING CHANGES 6 Sec. 25. Section 232.69, subsection 1, paragraph b, 7 subparagraph (5), Code 2026, is amended to read as follows: 8 (5) An employee or operator of a licensed child care center, 9 registered child development home, head start program, family 10 development and self-sufficiency grant program under section 11 216A.107 , or healthy opportunities for parents to experience 12 success – healthy families Iowa program under section 135.106 13 234A.5 . 14 Sec. 26. Section 237A.30, subsection 1, Code 2026, is 15 amended to read as follows: 16 1. The department shall work with the early childhood 17 Iowa program established in section 256I.5 in designing and 18 implementing implement a voluntary quality rating system for 19 each provider type of child care facility. 20 Sec. 27. Section 256I.3, subsection 2, paragraph b, Code 21 2026, is amended to read as follows: 22 b. The governor’s appointees shall be selected from 23 individuals nominated by area boards. The nominations shall 24 reflect the range of interests represented on the area boards 25 so that the governor is able to appoint one or more members 26 each for early care, education, health, human services, 27 business, faith, and public interests. At least one of the 28 citizen members shall be a service consumer or the parent of a 29 service consumer. The term of office of the citizen members 30 is three years. A citizen member vacancy on the board shall be 31 filled in the same manner as the original appointment for the 32 balance of the unexpired term. 33 Sec. 28. Section 256I.13, subsection 1, Code 2026, is 34 amended to read as follows: 35 -16- LSB 5557HV (2) 91 dg/ko 16/ 24

H.F. 2712 1. In order to implement the legislative intent stated 1 in sections 135.106 and section 256I.9 , that priority for 2 family support program funding be given to programs using 3 evidence-based or promising models for family support, it is 4 the intent of the general assembly that ninety percent of state 5 funds expended for family support programs shall be used for 6 evidence-based or promising program models. The remaining ten 7 percent of funds may be used for innovative program models that 8 do not yet meet the definition of evidence-based or promising 9 programs. 10 Sec. 29. EFFECTIVE DATE. This division of this Act takes 11 effect July 1, 2027. 12 DIVISION VII 13 CHILD CARE WORKFORCE —— STATE CHILD CARE ASSISTANCE ELIGIBILITY 14 Sec. 30. NEW SECTION . 237A.15 State child care assistance 15 —— child care workforce eligibility. 16 1. Notwithstanding any provision of section 237A.13 or 17 237A.14 to the contrary, a child shall be eligible for the 18 state child care assistance program established in section 19 237A.13 and the state child care assistance graduated 20 eligibility phase-out program established in section 237A.14 if 21 a parent, guardian, or custodian of the child meets all of the 22 following requirements, as applicable: 23 a. The parent, guardian, or custodian is employed in this 24 state at a child care facility or child care home that has an 25 agreement with the department to accept reimbursements from the 26 state child care assistance program. 27 b. The parent, guardian, or custodian works an average 28 minimum of thirty-two hours per week. A portion of the hours 29 worked, as specified by the department, must be in a position 30 with a primary duty of providing child care directly to 31 children, and the parent’s, guardian’s, or custodian’s position 32 must be regularly counted in the minimum child-to-staff ratio 33 established by the department. 34 c. (1) If the parent, guardian, or custodian is employed 35 -17- LSB 5557HV (2) 91 dg/ko 17/ 24

H.F. 2712 at a child care home or a child development home, the parent, 1 guardian, or custodian does not provide child care to the 2 parent’s, guardian’s, or custodian’s own child. 3 (2) Notwithstanding subparagraph (1), a co-provider at 4 a child development home may qualify for state child care 5 assistance if the co-provider meets all requirements specified 6 in this section and by the department by rule. 7 d. The parent, guardian, or custodian is not a substitute or 8 an assistant at a child care home or a child development home. 9 e. Based on the department’s evaluation of the parent’s, 10 guardian’s, or custodian’s application for state child care 11 assistance, the department has determined the parent, guardian, 12 or custodian has a need for child care. 13 f. The parent, guardian, or custodian is not the owner of 14 the child care facility or child care home where any of the 15 parent’s, guardian’s, or custodian’s children are enrolled. 16 2. A child of a director, co-director, or other 17 administrative staff member of a child care facility may 18 qualify for state child care assistance under subsection 1 19 if the director, co-director, or other administrative staff 20 member is regularly counted in the minimum child-to-staff ratio 21 established by the department by rule. 22 3. A parent, guardian, or custodian of a child participating 23 in the state child care assistance program based on eligibility 24 established under this section shall make copayments as 25 specified by the department by rule. 26 4. The department shall adopt rules pursuant to chapter 17A 27 to administer this section. 28 Sec. 31. EMERGENCY RULES. The department of health and 29 human services may adopt emergency rules under section 17A.4, 30 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 31 to implement the provisions of this division of this Act and 32 the rules shall be effective immediately upon filing unless 33 a later date is specified in the rules. Any rules adopted 34 in accordance with this section shall also be published as a 35 -18- LSB 5557HV (2) 91 dg/ko 18/ 24

H.F. 2712 notice of intended action as provided in section 17A.4. 1 Sec. 32. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. 3 DIVISION VIII 4 CODE EDITOR DIRECTIVES 5 Sec. 33. CODE EDITOR DIRECTIVES. The Code editor is 6 directed to do all of the following: 7 1. Make changes in any Code sections amended or enacted 8 by any other Act to correspond with the changes made in this 9 Act if there appears to be no doubt as to the proper method of 10 making the changes and the changes would not be contrary to or 11 inconsistent with the purposes of this Act or any other Act. 12 2. Correct internal references in the Code and in enacted 13 legislation as necessary due to the enactment of this Act. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to early childhood and family services, 18 including creation of an early childhood and family services 19 (ECFS) system and child care workforce eligibility for state 20 child care assistance (CCA). 21 DIVISION I —— EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM. 22 The bill creates new Code chapter 234A (early childhood and 23 family services system). The purpose of the ECFS system is 24 to provide accessible, ongoing, and community-based services 25 for children and families. The bill defines terms used in the 26 chapter. 27 The ECFS system is established under the control of 28 the department of health and human services (HHS) and 29 ECFS districts (districts) are established for statewide 30 implementation of primary prevention strategies and early 31 intervention strategies for families and their children under 32 19 years of age. The ECFS system must be administered in 33 a manner that maximizes funding opportunities, interagency 34 collaboration, and integration of activities and services that 35 -19- LSB 5557HV (2) 91 dg/ko 19/ 24

H.F. 2712 support positive outcomes for children and families. 1 The bill details actions HHS must perform, to the extent 2 funding is available, to develop and administer the ECFS 3 system. 4 The bill directs HHS to establish an ECFS district advisory 5 council (council) in each district, and develop policies and 6 procedures for the operational functions of the councils. A 7 council shall consist of 10 members appointed by HHS. The bill 8 specifies individuals who are eligible for appointment, and the 9 duties of a council. 10 The bill specifies the duties of HHS related to data 11 collection and use for the ECFS system. The bill requires 12 HHS to maintain compliance with applicable federal and state 13 privacy laws to ensure the confidentiality and integrity of 14 individually identifiable data related to the ECFS system 15 collected by HHS. 16 Current Code section 135.106 (healthy opportunities 17 for parents to experience success – healthy families Iowa 18 (HOPES-HFI)) is placed in the new Code chapter and becomes part 19 of the ECFS system. The bill specifies the requirements for 20 the HOPES-HFI program and directs HHS to develop and administer 21 the HOPES-HFI program, in whole or in part, by contracting 22 with local organizations that use evidence-based home visiting 23 models. 24 The bill establishes an ECFS system fund (ECFS fund) 25 consisting of moneys appropriated to HHS for the ECFS fund’s 26 purposes by the general assembly and any other moneys available 27 and obtained or accepted by HHS for deposit in the ECFS 28 fund. Moneys in the ECFS fund are appropriated to HHS for the 29 purposes of implementing and administering the ECFS system. 30 Moneys appropriated that remain unencumbered or unobligated at 31 the close of a fiscal year shall not revert to the general fund 32 of the state, and interest or earnings on moneys in the fund 33 shall be credited to the ECFS fund. 34 The section of the division that establishes the ECFS 35 -20- LSB 5557HV (2) 91 dg/ko 20/ 24