House File 623 - Introduced HOUSE FILE 623 BY COMMITTEE ON HEALTH AND HUMAN SERVICES (SUCCESSOR TO HSB 145) A BILL FOR An Act relating to early childhood education and care, 1 including by modifying provisions related to the statewide 2 preschool program, the child development coordinating 3 council, programs for at-risk children, the responsibilities 4 of the department of education, the early childhood Iowa 5 initiative, and the state child care assistance program, and 6 establishing the child care continuum partnership grants 7 pilot program within the department of health and human 8 services. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1122HV (2) 91 jda/jh

H.F. 623 DIVISION I 1 STATEWIDE PRESCHOOL PROGRAM 2 Section 1. Section 256C.1, subsection 1, Code 2025, is 3 amended to read as follows: 4 1. “Approved local program” means a school district’s 5 program or community-based provider’s program for four-year-old 6 children approved by the department of education to provide 7 high quality high-quality preschool instruction. 8 Sec. 2. Section 256C.1, Code 2025, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 1A. “ Community-based provider approved 11 to directly participate in the preschool program” means a 12 community-based provider that meets the community-based 13 provider requirements under section 256C.3 and has been 14 approved by the department to directly participate in the 15 preschool program. “Community-based provider approved to 16 directly participate in the preschool program” does not mean a 17 community-based provider that partners with a school district’s 18 approved local program. 19 Sec. 3. Section 256C.3, subsection 1, paragraph b, Code 20 2025, is amended to read as follows: 21 b. If space and funding are available, including funding 22 from another school district account or fund from which 23 preschool program expenditures are authorized by law, a school 24 district approved to participate in the preschool program or 25 community-based provider approved to directly participate in 26 the preschool program may enroll and pay the cost of attendance 27 for a younger or older child in the preschool program; however, 28 the child shall not be counted for state funding purposes. 29 Sec. 4. Section 256C.3, subsection 2, paragraph a, 30 subparagraph (1), Code 2025, is amended to read as follows: 31 (1) The individual is either employed by or under contract 32 with the school district , or with the community-based provider 33 approved to directly participate in the preschool program, that 34 is implementing the program. 35 -1- LSB 1122HV (2) 91 jda/jh 1/ 26

H.F. 623 Sec. 5. Section 256C.3, subsection 3, unnumbered paragraph 1 1, Code 2025, is amended to read as follows: 2 The state board shall adopt rules to further define the 3 following preschool program requirements which shall be used 4 to determine whether or not a local program implemented by a 5 school district approved to implement the preschool program or 6 a community-based provider directly approved to implement the 7 preschool program qualifies as an approved local program: 8 Sec. 6. Section 256C.3, subsection 3, paragraph h, Code 9 2025, is amended to read as follows: 10 h. Provision for ensuring that children receiving care from 11 other child care arrangements can participate in the preschool 12 program with minimal disruption due to transportation and 13 movement from one site to another. The children participating 14 in the preschool program may be transported by the school 15 district or community provider to activities associated with 16 the program along with other children. 17 Sec. 7. Section 256C.3, Code 2025, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 4A. Community-based provider 20 requirements. The state board shall adopt rules to further 21 define the following requirements of community-based providers 22 approved to directly participate in the preschool program in 23 implementing the preschool program: 24 a. Methods of demonstrating readiness to implement 25 high-quality instruction in the local program shall be 26 identified. 27 b. A community-based provider shall participate in data 28 collection and performance measurement processes and reporting 29 as defined by rule. 30 c. Professional development for community-based provider 31 preschool teachers shall be addressed in the community-based 32 provider’s professional development plan. 33 Sec. 8. Section 256C.3, subsection 5, paragraphs a, b, and 34 d, Code 2025, are amended to read as follows: 35 -2- LSB 1122HV (2) 91 jda/jh 2/ 26

H.F. 623 a. The department shall implement an application and 1 selection process for school district participation and 2 community-based provider participation in the preschool program 3 that includes but is not limited to the enrollment requirements 4 provided under section 256C.4 . 5 b. The department shall track the progress of 6 students served by a school district preschool program or 7 community-based provider preschool program and the students’ 8 performance in elementary and secondary education. 9 d. The state board, in collaboration with the department, 10 shall ensure that the administrative rules adopted to support 11 the preschool program emphasize that children’s access to 12 the program is voluntary, that the preschool foundation aid 13 provided to a school district or a community-based provider is 14 provided based upon the enrollment of eligible students in the 15 school district’s or community-based provider’s local program 16 regardless of whether an eligible student is a resident of the 17 school district, and that agreements entered into by a school 18 district for the provision of programming in settings other 19 than the school district’s facilities are between the school 20 district and the private provider. 21 Sec. 9. Section 256C.4, subsection 1, Code 2025, is amended 22 to read as follows: 23 1. General State funding for school district approved to 24 participate in the preschool program . 25 a. State funding provided under the preschool program to 26 school districts shall be based upon the enrollment of eligible 27 students in the preschool programming provided by a school 28 district approved to participate in the preschool program. 29 b. A school district approved to participate in the 30 preschool program may authorize expenditures for the district’s 31 preschool programming from any of the revenue sources available 32 to the district from the sources listed in chapter 298A , 33 provided the expenditures are within the uses permitted for the 34 revenue source. In addition, the use of the revenue source 35 -3- LSB 1122HV (2) 91 jda/jh 3/ 26

H.F. 623 for preschool or prekindergarten programming must have been 1 approved prior to any expenditure from the revenue source for 2 the district’s approved local program. 3 c. Funding provided under the preschool program is intended 4 to supplement, not supplant, existing public funding for 5 preschool programming. 6 d. Preschool foundation aid funding shall not be commingled 7 with the other state aid payments made under section 257.16 8 to a school district and shall be accounted for by the local 9 school district separately from the other state aid payments. 10 Preschool foundation aid payments made to school districts are 11 miscellaneous income for purposes of chapter 257 . A school 12 district shall maintain a separate listing within its budget 13 for preschool foundation aid payments received and expenditures 14 made. A school district shall certify to the department of 15 education that preschool foundation aid funding received by 16 the school district was used to supplement, not supplant, 17 moneys otherwise received and used by the school district for 18 preschool programming. 19 e. Preschool foundation aid funding shall not be used for 20 the costs of constructing a facility in connection with an 21 approved local program. Preschool foundation aid funding may 22 be used by approved local programs and community providers 23 for any purpose determined by the board of directors of the 24 school district to meet standards for high-quality preschool 25 instruction and for purposes that directly or indirectly 26 benefit students enrolled in the approved local program, 27 including but not limited to professional development for 28 preschool teachers, instructional equipment and supplies, 29 material and equipment designed to develop pupils’ large and 30 small motor skills, translation services, playground equipment 31 and repair costs, food and beverages used by children in the 32 approved local program, safety equipment, facility rental fees, 33 and for other direct costs that enhance the approved local 34 program, including by contracting with community partners for 35 -4- LSB 1122HV (2) 91 jda/jh 4/ 26

H.F. 623 any such services. Preschool foundation aid funding may be 1 used by approved local programs for the costs of transportation 2 involving children participating in the preschool program. 3 The costs of transporting other children associated with the 4 preschool program or transported as provided in section 256C.3, 5 subsection 3 , paragraph “h” , may be prorated by the school 6 district. Preschool foundation aid funding received by an 7 approved local program that remains unexpended and unobligated 8 at the end of a fiscal year beginning on or after July 1, 2017, 9 shall be used to build the approved local program’s preschool 10 program capacity in the next succeeding fiscal year excluding 11 that portion of such unexpended and unobligated funding that 12 the school district authorizes for transfer for deposit in the 13 school district’s flexibility account established under section 14 298A.2, subsection 2 , if the statutory requirements for the use 15 of such funding are met. For purposes of determining whether a 16 school district has authority to transfer preschool foundation 17 aid funding for deposit in the school district’s flexibility 18 account established under section 298A.2, subsection 2 , the 19 school district must have provided preschool programming 20 during the fiscal year for which funding remains unexpended 21 and unobligated to all eligible students for whom a timely 22 application for enrollment was submitted. 23 f. The receipt of funding by a school district for the 24 purposes of this chapter , the need for additional funding 25 for the purposes of this chapter , or the enrollment count of 26 eligible students under this chapter shall not be considered 27 to be unusual circumstances, create an unusual need for 28 additional funds, or qualify under any other circumstances that 29 may be used by the school budget review committee to grant 30 supplemental aid to or establish a modified supplemental amount 31 for a school district under section 257.31 . 32 g. For the fiscal year beginning July 1, 2015, and each 33 succeeding fiscal year, of the amount of preschool foundation 34 aid received by a school district for a fiscal year in 35 -5- LSB 1122HV (2) 91 jda/jh 5/ 26

H.F. 623 accordance with section 257.16 , not more than five percent may 1 be used by the school district for administering the district’s 2 approved local program. Outreach activities and rent for 3 facilities not owned by the school district are permissive uses 4 of the administrative funds. 5 h. For the fiscal year beginning July 1, 2015, and each 6 succeeding fiscal year, of the amount of preschool foundation 7 aid received by a school district for a fiscal year in 8 accordance with section 257.16 , not less than ninety-five 9 percent of the per pupil amount shall be passed through to 10 a community-based provider for each pupil enrolled in the 11 district’s approved local program. For the fiscal year 12 beginning July 1, 2015, and each succeeding fiscal year, not 13 more than ten percent of the amount of preschool foundation aid 14 passed through to a community-based provider may be used by the 15 community-based provider for administrative costs. The costs 16 of outreach activities and rent for facilities not owned by 17 the school district are permissive administrative costs. The 18 costs of transportation involving children participating in the 19 preschool program and other children may be prorated. 20 Sec. 10. Section 256C.4, Code 2025, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 1A. State preschool funding for 23 community-based providers approved to directly participate in the 24 preschool program. 25 a. State preschool funding shall not be used for the costs 26 of constructing a facility in connection with an approved 27 local program. Preschool foundation aid funding may be used 28 by community-based providers for any purpose determined by the 29 community-based provider to meet standards for high-quality 30 preschool instruction and for purposes that directly or 31 indirectly benefit students enrolled in the approved local 32 program, including but not limited to professional development 33 for preschool teachers, instructional equipment and supplies, 34 material and equipment designed to develop pupils’ large and 35 -6- LSB 1122HV (2) 91 jda/jh 6/ 26

H.F. 623 small motor skills, translation services, playground equipment 1 and repair costs, food and beverages used by children in the 2 approved local program, safety equipment, facility rental fees, 3 and for other direct costs that enhance the approved local 4 program, including by contracting with other community partners 5 for any such services. State preschool funding may be used 6 by approved local programs for the costs of transportation 7 involving children participating in the preschool program. 8 Preschool foundation aid funding received by a community-based 9 provider approved to directly participate in the preschool 10 program that remains unexpended and unobligated at the end 11 of a fiscal year shall be used to build the community-based 12 provider’s capacity in the next succeeding fiscal year. 13 b. For the fiscal year beginning July 1, 2025, and each 14 succeeding fiscal year, of the amount of state preschool 15 funding received by a community-based provider approved 16 to directly participate in the preschool program for a 17 fiscal year, not more than five percent may be used by the 18 community-based provider for administering the approved local 19 program. Outreach activities and rent for facilities not owned 20 by the community-based provider are permissive uses of the 21 administrative funds. 22 Sec. 11. Section 256C.4, subsection 2, paragraph a, Code 23 2025, is amended to read as follows: 24 a. To be included as an eligible student in the enrollment 25 count of the preschool programming provided by a school 26 district approved to participate in the preschool program or 27 a community-based provider approved to directly participate 28 in the preschool program , a child must be four years of age 29 by September 15 in the base year and attending the school 30 district’s or community-based provider’s approved local 31 program. 32 Sec. 12. Section 256C.5, subsection 1, paragraphs c and d, 33 Code 2025, are amended to read as follows: 34 c. “Preschool budget enrollment” means the figure that is 35 -7- LSB 1122HV (2) 91 jda/jh 7/ 26

H.F. 623 equal to fifty percent of the actual enrollment of eligible 1 students in the preschool programming provided by a school 2 district approved to participate in the preschool program or a 3 community-based provider approved to directly participate in 4 the preschool program on October 1 of the base year, or the 5 first Monday in October if October 1 falls on a Saturday or 6 Sunday. 7 d. “Preschool foundation aid” means the product of the 8 regular program state cost per pupil for the budget year 9 multiplied by the school district’s preschool budget enrollment 10 or the community-based provider’s preschool budget enrollment . 11 Sec. 13. Section 256C.5, Code 2025, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 2A. Preschool foundation aid community-based 14 provider amount. For the initial school year for which a 15 community-based provider approved to directly participate in 16 the preschool program receives that approval and implements 17 the preschool program, the preschool foundation aid payable 18 to the community-based provider is the product of the regular 19 program state cost per pupil for the school year multiplied 20 by fifty percent of the community-based provider’s eligible 21 student enrollment on the date in the school year determined 22 by rule. For budget years subsequent to the initial year 23 for which a community-based provider approved to directly 24 participate in the preschool program receives that initial 25 approval and implements the preschool program, the preschool 26 foundation aid is the same as calculated pursuant to subsection 27 1. The funding for the preschool foundation aid payable to the 28 community-based provider shall be paid from the appropriation 29 made in section 257.16. Continuation of a community-based 30 provider’s participation in the preschool program for a second 31 or subsequent budget year is subject to the approval of the 32 department based upon the community-based provider’s compliance 33 with accountability provisions and the department’s on-site 34 review of the community-based provider’s implementation of the 35 -8- LSB 1122HV (2) 91 jda/jh 8/ 26

H.F. 623 preschool program. 1 Sec. 14. Section 256C.5, subsection 3, Code 2025, is amended 2 to read as follows: 3 3. Aid payments. 4 a. Preschool foundation aid shall be paid as part of the 5 state aid payments made to school districts in accordance with 6 section 257.16 . 7 b. Preschool foundation aid paid directly to community-based 8 providers shall be paid to the community-based provider in 9 monthly installments beginning on September 15 of a budget year 10 and ending on or about June 15 of the budget year as determined 11 by the department of management, taking into consideration the 12 relative budget and cash position of the state resources. 13 Sec. 15. EMERGENCY RULES. The state board of education may 14 adopt emergency rules under section 17A.4, subsection 3, and 15 section 17A.5, subsection 2, paragraph “b”, to implement the 16 provisions of this division of this Act and the rules shall 17 be effective immediately upon filing unless a later date is 18 specified in the rules. Any rules adopted in accordance with 19 this section shall also be published as a notice of intended 20 action as provided in section 17A.4. 21 DIVISION II 22 CHILD DEVELOPMENT COORDINATING COUNCIL AND PROGRAMS FOR AT-RISK 23 CHILDREN 24 Sec. 16. Section 256.9, subsection 28, Code 2025, is amended 25 to read as follows: 26 28. Develop , in conjunction with the child development 27 coordinating council or other similar agency, child-to-staff 28 ratio recommendations and standards for at-risk programs based 29 on national literature and test results and Iowa longitudinal 30 test results. 31 Sec. 17. Section 256.9, subsection 31, paragraph b, Code 32 2025, is amended to read as follows: 33 b. Standards and materials developed shall include materials 34 which employ developmentally appropriate practices and 35 -9- LSB 1122HV (2) 91 jda/jh 9/ 26

H.F. 623 incorporate substantial parental involvement. The materials 1 and standards shall include alternative teaching approaches 2 including collaborative teaching and alternative dispute 3 resolution training. The department shall consult with the 4 child development coordinating council, the department of 5 health and human services, the state board of regents center 6 for early developmental education, the area education agencies, 7 the department of human development and family studies in the 8 college of human sciences at Iowa state university of science 9 and technology, the early childhood elementary division of the 10 college of education at the university of Iowa, and the college 11 of education at the university of northern Iowa, in developing 12 these standards and materials. 13 Sec. 18. Section 256.163, subsection 1, paragraph d, Code 14 2025, is amended to read as follows: 15 d. Shared visions programs receiving grants from the child 16 development coordinating council department of education under 17 section 256A.3 . 18 Sec. 19. Section 256A.3, Code 2025, is amended to read as 19 follows: 20 256A.3 Duties of council the department of education . 21 The child development coordinating council department of 22 education shall promote the provision of child development 23 services to at-risk three-year-old and four-year-old children, 24 and shall do all of the following : 25 1. Develop a definition of at-risk children for the purposes 26 of this chapter . The definition shall include income, family 27 structure, the child’s level of development, and availability 28 or accessibility for the child of a head start or other child 29 care program as criteria. 30 2. Establish minimum guidelines for comprehensive early 31 child development services for at-risk three-year-and 32 four-year-old children. The guidelines shall reflect 33 current research findings on the necessary components for 34 cost-effective child development services. 35 -10- LSB 1122HV (2) 91 jda/jh 10/ 26

H.F. 623 3. At least biennially, develop an inventory of child 1 development services provided to at-risk three-year- and 2 four-year-old children in this state and identify the number of 3 children receiving and not receiving these services, the types 4 of programs under which the services are received, the degree 5 to which each program meets the council’s minimum guidelines 6 for a comprehensive program, and the reasons children not 7 receiving the services are not being served. The council is 8 not required to conduct independent research in developing the 9 inventory, but shall determine information needs necessary to 10 provide a more complete inventory. 11 4. 2. Subject to the availability of funds appropriated 12 or otherwise available for the purpose of providing child 13 development services, award grants for programs that provide 14 new or additional child development services to at-risk 15 children. 16 a. In awarding program grants to an agency or individual, 17 the council department of education shall consider the 18 following: 19 (1) The quality of the staff and staff background in child 20 development services. 21 (2) The degree to which the program is or will be integrated 22 with existing community resources and has the support of the 23 local community. 24 (3) The ability of the program to provide for child care 25 in addition to child development services for families needing 26 full-day child care. 27 (4) A staff-to-children ratio within the guidelines 28 established under subsection 2 , but not less than one staff 29 member per eight children. 30 (5) The degree to which the program involves and works with 31 the parents, and includes home visits, instruction for parents 32 on parenting skills, on enhancement of skills in providing for 33 their children’s learning and development, and the physical, 34 mental, and emotional development of children, and experiential 35 -11- LSB 1122HV (2) 91 jda/jh 11/ 26

H.F. 623 education. 1 (6) The manner in which health, medical, dental, and 2 nutrition services are incorporated into the program. 3 (7) The degree to which the program complements existing 4 programs and services for at-risk three-year-old and 5 four-year-old children available in the area, including other 6 child care services, services provided through the school 7 district, and services available through area education 8 agencies. 9 (8) The degree to which the program can be monitored and 10 evaluated to determine its ability to meet its goals. 11 (9) (8) The provision of transportation or other auxiliary 12 services that may be necessary for families to participate in 13 the program. 14 (10) (9) The provision of staff training and development, 15 and staff compensation sufficient to assure continuity. 16 b. Program grants funded under this subsection may integrate 17 children not meeting at-risk criteria into the program and 18 shall establish a fee for participation in the program in the 19 manner provided in section 279.49 , but grant funds shall not be 20 used to pay the costs for those children. 21 c. Programs awarded grants under this subsection shall meet 22 the national association for the education of young children 23 program standards and accreditation criteria, the Iowa quality 24 preschool program standards and criteria, or other approved 25 program standards as determined by the department of education. 26 Programs awarded grants prior to July 1, 2015, shall continue 27 to be evaluated and assessed based on eligibility and award 28 criteria established under rules adopted by the state board of 29 education pursuant to section 279.51 prior to June 30, 2015. 30 5. 3. Encourage the submission of grant requests from all 31 potential providers of child development services statewide 32 voluntary preschool programming and shall be flexible in 33 evaluating grants, recognizing that different types of programs 34 may be suitable for different locations in the state. 35 -12- LSB 1122HV (2) 91 jda/jh 12/ 26

H.F. 623 a. Requests for grants must contain a procedure for 1 evaluating the effectiveness of the program and accounting 2 procedures for monitoring the expenditure of grant moneys. 3 b. The council department of education shall seek to 4 use performance-based measures to evaluate programs. Not 5 more than five percent of any state funds appropriated for 6 child development purposes may be used for administration and 7 evaluation. 8 6. 4. Annually, submit recommendations to the governor 9 and the general assembly on the need for investment in child 10 development services in the state. 11 7. 5. Subject to a decision by the council department of 12 education to initiate the programs, develop criteria for and 13 award grants under section 279.51, subsection 2 . 14 8. Encourage the establishment of programs that will 15 enhance the skills of parents in parenting and in providing for 16 the learning and development of their children. 17 Sec. 20. Section 256A.4, subsection 2, paragraph g, Code 18 2025, is amended to read as follows: 19 g. Role modeling and mentoring techniques for families of 20 children who meet one or more of the criteria established for 21 the definition of at-risk children by the child development 22 coordinating council department of education . 23 Sec. 21. Section 256A.5, subsection 2, Code 2025, is amended 24 by striking the subsection. 25 Sec. 22. Section 256C.3, subsection 3, paragraph e, Code 26 2025, is amended to read as follows: 27 e. Collaboration with participating families, early care 28 providers, and community partners including but not limited to 29 early childhood Iowa area boards, head start programs, shared 30 visions and other programs provided under the auspices of the 31 child development coordinating council department , licensed 32 child care centers, registered child development homes, area 33 education agencies, child care resource and referral services 34 provided under section 237A.26 , early childhood special 35 -13- LSB 1122HV (2) 91 jda/jh 13/ 26

H.F. 623 education programs, services funded by Tit. I of the federal 1 Elementary and Secondary Education Act of 1965, and family 2 support programs. 3 Sec. 23. Section 256C.3, subsection 4, paragraph a, Code 4 2025, is amended to read as follows: 5 a. Methods of demonstrating community readiness to 6 implement high-quality instruction in a local program 7 shall be identified. The potential provider shall submit 8 a collaborative program proposal that demonstrates the 9 involvement of multiple community stakeholders including 10 but not limited to, and only as applicable, parents, the 11 school district, accredited nonpublic schools and faith-based 12 representatives, the area education agency, the early childhood 13 Iowa area board, representatives of business, head start 14 programs, shared visions and other programs provided under 15 the auspices of the child development coordinating council 16 department , center-based and home-based providers of child 17 care services, human services, public health, and economic 18 development programs. The methods may include but are not 19 limited to a school district providing evidence of a public 20 hearing on the proposed programming and written documentation 21 of collaboration agreements between the school district, 22 existing community providers, and other community stakeholders 23 addressing operational procedures and other critical measures. 24 Sec. 24. Section 262.71, subsection 8, Code 2025, is amended 25 by striking the subsection. 26 Sec. 25. Section 273.2, subsection 6, unnumbered paragraph 27 1, Code 2025, is amended to read as follows: 28 The area education agency board may provide for the 29 following programs and services to local school districts, and 30 at the request of local school districts to providers of child 31 development services who have received grants under chapter 32 256A from the child development coordinating council department 33 of education , within the limits of funds available: 34 Sec. 26. Section 279.51, subsection 1, paragraphs b and d, 35 -14- LSB 1122HV (2) 91 jda/jh 14/ 26

H.F. 623 Code 2025, are amended to read as follows: 1 b. For the fiscal year beginning July 1, 2007, and for each 2 succeeding fiscal year, eight million five hundred thirty-six 3 thousand seven hundred forty dollars of the funds appropriated 4 shall be allocated to the child development coordinating 5 council established in chapter 256A department of education 6 for the purposes set out in subsection 2 , of this section and 7 section 256A.3 , and to be used as grants to early childhood 8 programs that demonstrate the greatest need for programs for 9 at-risk children and the families of at-risk children . 10 d. Notwithstanding section 256A.3, subsection 5 3 , of the 11 amount appropriated in this subsection for the fiscal year 12 beginning July 1, 2007, and for each succeeding fiscal year, up 13 to two hundred eighty-two thousand six hundred dollars may be 14 used for administrative costs. 15 Sec. 27. Section 279.51, subsection 2, paragraph a, 16 unnumbered paragraph 1, Code 2025, is amended to read as 17 follows: 18 Funds allocated under subsection 1 , paragraph “b” , shall be 19 used by the child development coordinating council department 20 of education for the following: 21 Sec. 28. Section 279.51, subsection 2, paragraph a, 22 subparagraphs (1) and (2), Code 2025, are amended to read as 23 follows: 24 (1) To continue funding for programs previously funded by 25 grants awarded under section 256A.3 and to provide additional 26 grants under section 256A.3 . The council department shall seek 27 to provide grants on the basis of the location within the state 28 of children meeting at-risk definitions. 29 (2) At the discretion of the child development coordinating 30 council department of education , award grants for the 31 following: 32 (a) To to school districts to establish programs for 33 three-year-old , and four-year-old , and five-year-old at-risk 34 children. 35 -15- LSB 1122HV (2) 91 jda/jh 15/ 26

H.F. 623 (b) To provide grants to provide educational support 1 services to parents of at-risk children age birth through three 2 years. 3 Sec. 29. Section 279.51, subsection 2, paragraph b, Code 4 2025, is amended to read as follows: 5 b. A grantee under this subsection may direct the use of 6 moneys received to serve any qualifying child ranging in age 7 from three years old to five four years old, regardless of the 8 age of population indicated on the grant request in its initial 9 year of application. A grantee is encouraged to consider the 10 degree to which the program complements existing programs 11 and services for three-year-old , and four-year-old , and 12 five-year-old at-risk children available in the area, including 13 other child care and preschool services, services provided 14 through a school district, and services available through an 15 area education agency. 16 Sec. 30. Section 279.51, subsection 3, Code 2025, is amended 17 by striking the subsection. 18 Sec. 31. REPEAL. Section 256A.2, Code 2025, is repealed. 19 DIVISION III 20 DEPARTMENT OF EDUCATION RESPONSIBILITIES 21 Sec. 32. Section 256.9, Code 2025, is amended by adding the 22 following new subsections: 23 NEW SUBSECTION . 69. a. Review and conduct research related 24 to the most effective evidence-based curricula, instructional 25 materials, and evidence-based or promising practices used in 26 prekindergarten programs and in preschools, which shall include 27 a review of the curricula and instructional materials used by 28 prekindergarten programs in this state, preschool programs 29 serving children with individualized education programs, and 30 preschool programs created in accordance with chapters 256A and 31 256C. 32 b. Develop and make available on the department’s internet 33 site a list of the most effective evidence-based curricula, 34 instructional materials, and evidence-based or promising 35 -16- LSB 1122HV (2) 91 jda/jh 16/ 26

H.F. 623 practices for prekindergarten programs and preschools. 1 NEW SUBSECTION . 70. a. Develop a preschool accountability 2 system representing, at minimum, developmental and learning 3 outcomes and continuous implementation of high-quality program 4 standards for school districts offering a prekindergarten 5 program, accredited nonpublic schools offering a 6 prekindergarten program, prekindergarten and preschool programs 7 serving children with individualized education programs, and 8 preschool programs created in accordance with chapters 256A 9 and 256C. The preschool accountability system must utilize, 10 at minimum, data from child performance and growth measures 11 described in section 279.60, continuous improvement activities 12 described in chapters 256A and 256C, and other measures and 13 activities defined by the department. 14 b. Provide, in coordination with the department of 15 health and human services, an alignment of an outcomes-based 16 accountability system for school districts offering a 17 prekindergarten program, accredited nonpublic schools offering 18 a prekindergarten program, preschool programs serving children 19 with individualized education programs, and preschool programs 20 created in accordance with chapters 256A and 256C. The 21 outcomes-based accountability system shall take into account 22 the voluntary quality rating system established pursuant to 23 section 237A.30. 24 NEW SUBSECTION . 71. a. Review and revise the state early 25 learning standards and standards related to preschool programs 26 serving children with individualized education programs and 27 preschool programs created in accordance with chapters 256A and 28 256C. 29 b. Provide professional development services to school 30 districts offering a prekindergarten program, accredited 31 nonpublic schools offering a prekindergarten program, preschool 32 programs serving children with individualized education 33 programs, and preschool programs created in accordance with 34 chapters 256A and 256C to assist such programs in implementing 35 -17- LSB 1122HV (2) 91 jda/jh 17/ 26

H.F. 623 the revised early learning standards, preschool assessments, 1 high-quality program standards, and standards related to 2 preschool programs. 3 DIVISION IV 4 EARLY CHILDHOOD IOWA INITIATIVE 5 Sec. 33. Section 256I.1, subsection 4, Code 2025, is amended 6 to read as follows: 7 4. “Early childhood Iowa area” means a geographic area 8 designated by the department in accordance with this chapter . 9 Sec. 34. Section 256I.4, subsection 3, Code 2025, is amended 10 by striking the subsection. 11 Sec. 35. Section 256I.6, subsection 2, Code 2025, is amended 12 by striking the subsection and inserting in lieu thereof the 13 following: 14 2. By January 1, 2026, the department shall designate 15 early childhood Iowa areas in the same number and using the 16 same geographic boundaries as the behavioral health districts 17 designated by the department pursuant to section 225A.4, as 18 enacted by 2024 Iowa Acts, ch. 1161. 19 Sec. 36. Section 256I.6, subsections 3 and 4, Code 2025, are 20 amended by striking the subsections. 21 Sec. 37. Section 256I.9, subsection 4, paragraphs a, b, and 22 c, Code 2025, are amended to read as follows: 23 a. A school ready children grant shall be awarded to an 24 area board annually, as funding is available. Receipt of 25 continued funding is subject to submission of the required 26 annual report data and the state board’s determination that the 27 area board is making progress, through the use of specific, 28 quantifiable performance measures and locally identified 29 community-wide indicators, toward achieving the desired results 30 and other results identified in the community plan. Each area 31 board shall participate in the designation process to measure 32 the area’s area board’s success. If the use of performance 33 measures and community-wide indicators does not show that an 34 area board has made progress toward achieving the results 35 -18- LSB 1122HV (2) 91 jda/jh 18/ 26

H.F. 623 identified in the community plan, the state board shall require 1 a plan of corrective action, provide technical assistance, 2 withhold any increase in funding, or withdraw grant funding. 3 b. The state board shall distribute school ready children 4 grant moneys to area boards with approved comprehensive 5 community plans based upon a determination of an early 6 childhood Iowa area’s designation the success of the area 7 board . 8 c. An area board’s designation success shall be determined 9 by evidence of successful collaboration among public and 10 private early care, education, health, and human services 11 interests in the area or a documented program design that 12 supports a strong likelihood of a successful collaboration 13 between these interests. 14 Sec. 38. Section 256I.11, subsection 4, paragraph a, Code 15 2025, is amended to read as follows: 16 a. An early childhood programs grant account is created in 17 the fund under the authority of the director of the department. 18 Moneys credited to the account are appropriated to and shall 19 be distributed by the department in the form of grants to 20 early childhood Iowa areas that the department determines are 21 eligible pursuant to criteria established by the state board in 22 accordance with law. The criteria shall include but are not 23 limited to a requirement that an early childhood Iowa area must 24 be designated by the state board in order to be eligible to 25 receive an early childhood programs grant. 26 DIVISION V 27 CHILD CARE WORKFORCE —— STATE CHILD CARE ASSISTANCE ELIGIBILITY 28 Sec. 39. NEW SECTION . 237A.13A State child care assistance 29 —— child care workforce. 30 1. Notwithstanding any provision of section 237A.13 to 31 the contrary, a child shall be eligible for the state child 32 care assistance program under section 237A.13 if a parent, 33 guardian, or custodian meets all of the following requirements, 34 as applicable: 35 -19- LSB 1122HV (2) 91 jda/jh 19/ 26