House Study Bill 145 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BILL) 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 1122XL (13) 91 jda/jh

S.F. _____ H.F. _____ 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 3, unnumbered paragraph 30 1, Code 2025, is amended to read as follows: 31 The state board shall adopt rules to further define the 32 following preschool program requirements which shall be used 33 to determine whether or not a local program implemented by a 34 school district approved to implement the preschool program or 35 -1- LSB 1122XL (13) 91 jda/jh 1/ 26

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

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

S.F. _____ H.F. _____ d. Preschool foundation aid funding shall not be commingled 1 with the other state aid payments made under section 257.16 2 to a school district and shall be accounted for by the local 3 school district separately from the other state aid payments. 4 Preschool foundation aid payments made to school districts are 5 miscellaneous income for purposes of chapter 257 . A school 6 district shall maintain a separate listing within its budget 7 for preschool foundation aid payments received and expenditures 8 made. A school district shall certify to the department of 9 education that preschool foundation aid funding received by 10 the school district was used to supplement, not supplant, 11 moneys otherwise received and used by the school district for 12 preschool programming. 13 e. Preschool foundation aid funding shall not be used for 14 the costs of constructing a facility in connection with an 15 approved local program. Preschool foundation aid funding may 16 be used by approved local programs and community providers 17 for any purpose determined by the board of directors of the 18 school district to meet standards for high-quality preschool 19 instruction and for purposes that directly or indirectly 20 benefit students enrolled in the approved local program, 21 including but not limited to professional development for 22 preschool teachers, instructional equipment and supplies, 23 material and equipment designed to develop pupils’ large and 24 small motor skills, translation services, playground equipment 25 and repair costs, food and beverages used by children in the 26 approved local program, safety equipment, facility rental fees, 27 and for other direct costs that enhance the approved local 28 program, including by contracting with community partners for 29 any such services. Preschool foundation aid funding may be 30 used by approved local programs for the costs of transportation 31 involving children participating in the preschool program. 32 The costs of transporting other children associated with the 33 preschool program or transported as provided in section 256C.3, 34 subsection 3 , paragraph “h” , may be prorated by the school 35 -4- LSB 1122XL (13) 91 jda/jh 4/ 26

S.F. _____ H.F. _____ district. Preschool foundation aid funding received by an 1 approved local program that remains unexpended and unobligated 2 at the end of a fiscal year beginning on or after July 1, 2017, 3 shall be used to build the approved local program’s preschool 4 program capacity in the next succeeding fiscal year excluding 5 that portion of such unexpended and unobligated funding that 6 the school district authorizes for transfer for deposit in the 7 school district’s flexibility account established under section 8 298A.2, subsection 2 , if the statutory requirements for the use 9 of such funding are met. For purposes of determining whether a 10 school district has authority to transfer preschool foundation 11 aid funding for deposit in the school district’s flexibility 12 account established under section 298A.2, subsection 2 , the 13 school district must have provided preschool programming 14 during the fiscal year for which funding remains unexpended 15 and unobligated to all eligible students for whom a timely 16 application for enrollment was submitted. 17 f. The receipt of funding by a school district for the 18 purposes of this chapter , the need for additional funding 19 for the purposes of this chapter , or the enrollment count of 20 eligible students under this chapter shall not be considered 21 to be unusual circumstances, create an unusual need for 22 additional funds, or qualify under any other circumstances that 23 may be used by the school budget review committee to grant 24 supplemental aid to or establish a modified supplemental amount 25 for a school district under section 257.31 . 26 g. For the fiscal year beginning July 1, 2015, and each 27 succeeding fiscal year, of the amount of preschool foundation 28 aid received by a school district for a fiscal year in 29 accordance with section 257.16 , not more than five percent may 30 be used by the school district for administering the district’s 31 approved local program. Outreach activities and rent for 32 facilities not owned by the school district are permissive uses 33 of the administrative funds. 34 h. For the fiscal year beginning July 1, 2015, and each 35 -5- LSB 1122XL (13) 91 jda/jh 5/ 26

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

S.F. _____ H.F. _____ by approved local programs for the costs of transportation 1 involving children participating in the preschool program. 2 Preschool foundation aid funding received by a community-based 3 provider approved to directly participate in the preschool 4 program that remains unexpended and unobligated at the end 5 of a fiscal year shall be used to build the community-based 6 provider’s capacity in the next succeeding fiscal year. 7 b. For the fiscal year beginning July 1, 2025, and each 8 succeeding fiscal year, of the amount of state preschool 9 funding received by a community-based provider approved 10 to directly participate in the preschool program for a 11 fiscal year, not more than five percent may be used by the 12 community-based provider for administering the approved local 13 program. Outreach activities and rent for facilities not owned 14 by the community-based provider are permissive uses of the 15 administrative funds. 16 Sec. 10. Section 256C.4, subsection 2, paragraph a, Code 17 2025, is amended to read as follows: 18 a. To be included as an eligible student in the enrollment 19 count of the preschool programming provided by a school 20 district approved to participate in the preschool program or 21 a community-based provider approved to directly participate 22 in the preschool program , a child must be four years of age 23 by September 15 in the base year and attending the school 24 district’s or community-based provider’s approved local 25 program. 26 Sec. 11. Section 256C.5, subsection 1, paragraphs c and d, 27 Code 2025, are amended to read as follows: 28 c. “Preschool budget enrollment” means the figure that is 29 equal to fifty percent of the actual enrollment of eligible 30 students in the preschool programming provided by a school 31 district approved to participate in the preschool program or a 32 community-based provider approved to directly participate in 33 the preschool program on October 1 of the base year, or the 34 first Monday in October if October 1 falls on a Saturday or 35 -7- LSB 1122XL (13) 91 jda/jh 7/ 26

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

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

S.F. _____ H.F. _____ for early developmental education, the area education agencies, 1 the department of human development and family studies in the 2 college of human sciences at Iowa state university of science 3 and technology, the early childhood elementary division of the 4 college of education at the university of Iowa, and the college 5 of education at the university of northern Iowa, in developing 6 these standards and materials. 7 Sec. 17. Section 256.163, subsection 1, paragraph d, Code 8 2025, is amended to read as follows: 9 d. Shared visions programs receiving grants from the child 10 development coordinating council department of education under 11 section 256A.3 . 12 Sec. 18. Section 256A.3, Code 2025, is amended to read as 13 follows: 14 256A.3 Duties of council the department of education . 15 The child development coordinating council department of 16 education shall promote the provision of child development 17 services to at-risk three-year-old and four-year-old children, 18 and shall do all of the following : 19 1. Develop a definition of at-risk children for the purposes 20 of this chapter . The definition shall include income, family 21 structure, the child’s level of development, and availability 22 or accessibility for the child of a head start or other child 23 care program as criteria. 24 2. Establish minimum guidelines for comprehensive early 25 child development services for at-risk three-year-and 26 four-year-old children. The guidelines shall reflect 27 current research findings on the necessary components for 28 cost-effective child development services. 29 3. At least biennially, develop an inventory of child 30 development services provided to at-risk three-year- and 31 four-year-old children in this state and identify the number of 32 children receiving and not receiving these services, the types 33 of programs under which the services are received, the degree 34 to which each program meets the council’s minimum guidelines 35 -10- LSB 1122XL (13) 91 jda/jh 10/ 26

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

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

S.F. _____ H.F. _____ child development purposes may be used for administration and 1 evaluation. 2 6. 4. Annually, submit recommendations to the governor 3 and the general assembly on the need for investment in child 4 development services in the state. 5 7. 5. Subject to a decision by the council department of 6 education to initiate the programs, develop criteria for and 7 award grants under section 279.51, subsection 2 . 8 8. Encourage the establishment of programs that will 9 enhance the skills of parents in parenting and in providing for 10 the learning and development of their children. 11 Sec. 19. Section 256A.4, subsection 2, paragraph g, Code 12 2025, is amended to read as follows: 13 g. Role modeling and mentoring techniques for families of 14 children who meet one or more of the criteria established for 15 the definition of at-risk children by the child development 16 coordinating council department of education . 17 Sec. 20. Section 256A.5, subsection 2, Code 2025, is amended 18 by striking the subsection. 19 Sec. 21. Section 256C.3, subsection 3, paragraph e, Code 20 2025, is amended to read as follows: 21 e. Collaboration with participating families, early care 22 providers, and community partners including but not limited to 23 early childhood Iowa area boards, head start programs, shared 24 visions and other programs provided under the auspices of the 25 child development coordinating council department , licensed 26 child care centers, registered child development homes, area 27 education agencies, child care resource and referral services 28 provided under section 237A.26 , early childhood special 29 education programs, services funded by Tit. I of the federal 30 Elementary and Secondary Education Act of 1965, and family 31 support programs. 32 Sec. 22. Section 256C.3, subsection 4, paragraph a, Code 33 2025, is amended to read as follows: 34 a. Methods of demonstrating community readiness to 35 -13- LSB 1122XL (13) 91 jda/jh 13/ 26

S.F. _____ H.F. _____ implement high-quality instruction in a local program 1 shall be identified. The potential provider shall submit 2 a collaborative program proposal that demonstrates the 3 involvement of multiple community stakeholders including 4 but not limited to, and only as applicable, parents, the 5 school district, accredited nonpublic schools and faith-based 6 representatives, the area education agency, the early childhood 7 Iowa area board, representatives of business, head start 8 programs, shared visions and other programs provided under 9 the auspices of the child development coordinating council 10 department , center-based and home-based providers of child 11 care services, human services, public health, and economic 12 development programs. The methods may include but are not 13 limited to a school district providing evidence of a public 14 hearing on the proposed programming and written documentation 15 of collaboration agreements between the school district, 16 existing community providers, and other community stakeholders 17 addressing operational procedures and other critical measures. 18 Sec. 23. Section 262.71, subsection 8, Code 2025, is amended 19 by striking the subsection. 20 Sec. 24. Section 273.2, subsection 6, unnumbered paragraph 21 1, Code 2025, is amended to read as follows: 22 The area education agency board may provide for the 23 following programs and services to local school districts, and 24 at the request of local school districts to providers of child 25 development services who have received grants under chapter 26 256A from the child development coordinating council department 27 of education , within the limits of funds available: 28 Sec. 25. Section 279.51, subsection 1, paragraphs b and d, 29 Code 2025, are amended to read as follows: 30 b. For the fiscal year beginning July 1, 2007, and for each 31 succeeding fiscal year, eight million five hundred thirty-six 32 thousand seven hundred forty dollars of the funds appropriated 33 shall be allocated to the child development coordinating 34 council established in chapter 256A department of education 35 -14- LSB 1122XL (13) 91 jda/jh 14/ 26

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

S.F. _____ H.F. _____ moneys received to serve any qualifying child ranging in age 1 from three years old to five four years old, regardless of the 2 age of population indicated on the grant request in its initial 3 year of application. A grantee is encouraged to consider the 4 degree to which the program complements existing programs 5 and services for three-year-old , and four-year-old , and 6 five-year-old at-risk children available in the area, including 7 other child care and preschool services, services provided 8 through a school district, and services available through an 9 area education agency. 10 Sec. 29. Section 279.51, subsection 3, Code 2025, is amended 11 by striking the subsection. 12 Sec. 30. REPEAL. Section 256A.2, Code 2025, is repealed. 13 DIVISION III 14 DEPARTMENT OF EDUCATION RESPONSIBILITIES 15 Sec. 31. Section 256.9, Code 2025, is amended by adding the 16 following new subsections: 17 NEW SUBSECTION . 69. a. Review and conduct research related 18 to the most effective evidence-based curricula, instructional 19 materials, and evidence-based or promising practices used in 20 prekindergarten programs and in preschools, which shall include 21 a review of the curricula and instructional materials used by 22 prekindergarten programs in this state, preschool programs 23 serving children with individualized education programs, and 24 preschool programs created in accordance with chapters 256A and 25 256C. 26 b. Develop and make available on the department’s internet 27 site a list of the most effective evidence-based curricula, 28 instructional materials, and evidence-based or promising 29 practices for prekindergarten programs and preschools. 30 NEW SUBSECTION . 70. a. Develop a preschool accountability 31 system representing, at minimum, developmental and learning 32 outcomes and continuous implementation of high-quality program 33 standards for school districts offering a prekindergarten 34 program, accredited nonpublic schools offering a 35 -16- LSB 1122XL (13) 91 jda/jh 16/ 26

S.F. _____ H.F. _____ prekindergarten program, prekindergarten and preschool programs 1 serving children with individualized education programs, and 2 preschool programs created in accordance with chapters 256A 3 and 256C. The preschool accountability system must utilize, 4 at minimum, data from child performance and growth measures 5 described in section 279.60, continuous improvement activities 6 described in chapters 256A and 256C, and other measures and 7 activities defined by the department. 8 b. Provide, in coordination with the department of 9 health and human services, an alignment of an outcomes-based 10 accountability system for school districts offering a 11 prekindergarten program, accredited nonpublic schools offering 12 a prekindergarten program, preschool programs serving children 13 with individualized education programs, and preschool programs 14 created in accordance with chapters 256A and 256C. The 15 outcomes-based accountability system shall take into account 16 the voluntary quality rating system established pursuant to 17 section 237A.30. 18 NEW SUBSECTION . 71. a. Review and revise the state early 19 learning standards and standards related to preschool programs 20 serving children with individualized education programs and 21 preschool programs created in accordance with chapters 256A and 22 256C. 23 b. Provide professional development services to school 24 districts offering a prekindergarten program, accredited 25 nonpublic schools offering a prekindergarten program, preschool 26 programs serving children with individualized education 27 programs, and preschool programs created in accordance with 28 chapters 256A and 256C to assist such programs in implementing 29 the revised early learning standards, preschool assessments, 30 high-quality program standards, and standards related to 31 preschool programs. 32 DIVISION IV 33 EARLY CHILDHOOD IOWA INITIATIVE 34 Sec. 32. Section 256I.1, subsection 4, Code 2025, is amended 35 -17- LSB 1122XL (13) 91 jda/jh 17/ 26

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

S.F. _____ H.F. _____ childhood Iowa area’s designation the success of the area 1 board . 2 c. An area board’s designation success shall be determined 3 by evidence of successful collaboration among public and 4 private early care, education, health, and human services 5 interests in the area or a documented program design that 6 supports a strong likelihood of a successful collaboration 7 between these interests. 8 Sec. 37. Section 256I.11, subsection 4, paragraph a, Code 9 2025, is amended to read as follows: 10 a. An early childhood programs grant account is created in 11 the fund under the authority of the director of the department. 12 Moneys credited to the account are appropriated to and shall 13 be distributed by the department in the form of grants to 14 early childhood Iowa areas that the department determines are 15 eligible pursuant to criteria established by the state board in 16 accordance with law. The criteria shall include but are not 17 limited to a requirement that an early childhood Iowa area must 18 be designated by the state board in order to be eligible to 19 receive an early childhood programs grant. 20 DIVISION V 21 CHILD CARE WORKFORCE —— STATE CHILD CARE ASSISTANCE ELIGIBILITY 22 Sec. 38. NEW SECTION . 237A.13A State child care assistance 23 —— child care workforce. 24 1. Notwithstanding any provision of section 237A.13 to 25 the contrary, a child shall be eligible for the state child 26 care assistance program under section 237A.13 if a parent, 27 guardian, or custodian meets all of the following requirements, 28 as applicable: 29 a. The parent, guardian, or custodian is employed at a child 30 care facility or child care home that has an agreement with the 31 department to accept reimbursement from the state child care 32 assistance program. 33 b. The parent, guardian, or custodian works in a child 34 care facility or child care home an average minimum of 35 -19- LSB 1122XL (13) 91 jda/jh 19/ 26