Senate File 2462 - Introduced SENATE FILE 2462 BY COMMITTEE ON HEALTH AND HUMAN SERVICES (SUCCESSOR TO SSB 3111) 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 5557SV (2) 91 dg/ko

S.F. 2462 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 5557SV (2) 91 dg/ko 1/ 24

S.F. 2462 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 5557SV (2) 91 dg/ko 2/ 24

S.F. 2462 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 5557SV (2) 91 dg/ko 3/ 24

S.F. 2462 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 5557SV (2) 91 dg/ko 4/ 24

S.F. 2462 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 5557SV (2) 91 dg/ko 5/ 24

S.F. 2462 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 5557SV (2) 91 dg/ko 6/ 24

S.F. 2462 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 5557SV (2) 91 dg/ko 7/ 24

S.F. 2462 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 5557SV (2) 91 dg/ko 8/ 24

S.F. 2462 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 following take effect July 1, 5 2027: 6 1. The sections of this division of this Act enacting 7 sections 234A.1 through 234A.5. 8 2. The sections of this division of this Act repealing 9 section 135.106. 10 Sec. 9. EFFECTIVE DATE. The section of this division of 11 this Act enacting section 234A.6, being deemed of immediate 12 importance, takes effect upon enactment. 13 DIVISION II 14 DECATEGORIZATION INITIATIVE 15 Sec. 10. Section 235.7, subsection 2, Code 2026, is amended 16 to read as follows: 17 2. Membership. The department may authorize the governance 18 boards of decategorization of child welfare and juvenile 19 justice funding projects established under section 232.188 to 20 appoint the transition committee membership and may utilize 21 the boundaries of decategorization projects to establish 22 the service areas for transition committees. The committee 23 A committee’s membership may include but is not limited to 24 department staff involved with foster care, child welfare, 25 and adult services, juvenile court services staff, staff 26 involved with county general assistance or emergency relief 27 under chapter 251 or 252 , school district and area education 28 agency staff involved with special education, and a child’s 29 court appointed special advocate, guardian ad litem, service 30 providers, and other persons knowledgeable about the child. 31 Sec. 11. Section 237A.1, subsection 2, paragraph j, 32 subparagraph (2), Code 2026, is amended by striking the 33 subparagraph. 34 Sec. 12. Section 249A.26, subsection 5, Code 2026, is 35 -9- LSB 5557SV (2) 91 dg/ko 9/ 24

S.F. 2462 amended by striking the subsection. 1 Sec. 13. Section 256I.4, subsection 6, Code 2026, is amended 2 by striking the subsection. 3 Sec. 14. REPEAL. Section 232.188, Code 2026, is repealed. 4 DIVISION III 5 CHILD ABUSE PREVENTION PROGRAM 6 Sec. 15. Section 144.13A, subsection 5, paragraph a, Code 7 2026, is amended to read as follows: 8 a. Ten dollars of each registration fee is appropriated and 9 shall be used for primary and secondary child abuse prevention 10 programs pursuant to section 235A.1 , and ten dollars of each 11 registration fee is appropriated and shall be used for the 12 congenital and inherited disorders central registry established 13 pursuant to section 136A.6 . Notwithstanding section 8.33 , 14 moneys appropriated in this paragraph that remain unencumbered 15 or unobligated at the close of the fiscal year shall not revert 16 but shall remain available for expenditure for the purposes 17 designated until the close of the succeeding fiscal year, and 18 shall not be transferred, used, obligated, appropriated, or 19 otherwise encumbered except as provided in this paragraph. 20 Sec. 16. Section 422.12K, Code 2026, is amended to read as 21 follows: 22 422.12K Income tax checkoff for child abuse prevention 23 program fund . 24 1. A person who files an individual or a joint income tax 25 return with the department of revenue under section 422.13 may 26 designate one dollar or more to be paid to the child abuse 27 prevention program early childhood and family services system 28 fund created in section 235A.2 234A.6, to be used for the 29 purpose of child abuse prevention . If the refund due on the 30 return or the payment remitted with the return is insufficient 31 to pay the additional amount designated by the taxpayer to 32 the child abuse prevention program early childhood and family 33 services system fund, the amount designated shall be reduced to 34 the remaining amount remitted with the return. The designation 35 -10- LSB 5557SV (2) 91 dg/ko 10/ 24

S.F. 2462 of a contribution to the child abuse prevention program early 1 childhood and family services system fund under this section 2 is irrevocable. 3 2. The director of revenue shall draft the income tax form 4 to allow the designation of contributions to the child abuse 5 prevention program early childhood and family services system 6 fund on the tax return. The department of revenue, on or 7 before January 31, shall transfer the total amount designated 8 on the tax return forms due in the preceding calendar year to 9 the child abuse prevention program early childhood and family 10 services system fund. However, before a checkoff pursuant 11 to this section shall be permitted, all liabilities on the 12 books of the department and accounts identified as owing under 13 section 421.65 shall be satisfied. 14 3. The department of health and human services may authorize 15 payment of moneys from the child abuse prevention program early 16 childhood and family services system fund for the purpose 17 of child abuse prevention in accordance with section 235A.2 18 234A.6 . 19 4. The department of revenue shall adopt rules to administer 20 this section . 21 5. This section is subject to repeal under section 422.12E . 22 Sec. 17. REPEAL. Sections 235A.1, 235A.2, and 235A.3, Code 23 2026, are repealed. 24 Sec. 18. CHILD ABUSE PREVENTION PROGRAM FUND —— TRANSFER 25 OF MONEYS. Any unencumbered or unobligated moneys remaining 26 in the child abuse prevention program fund created in section 27 235A.2, on June 30, 2026, shall be transferred to the early 28 childhood and family services system fund created in section 29 234A.6, as enacted in this Act. 30 Sec. 19. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 DIVISION IV 33 TRANSITION PROVISIONS 34 Sec. 20. EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM. 35 -11- LSB 5557SV (2) 91 dg/ko 11/ 24

S.F. 2462 1. For purposes of this division: 1 a. The following mean the same as defined in section 234A.1 2 as enacted in division I of this Act: 3 (1) “Department”. 4 (2) “Early intervention strategies”. 5 (3) “ECFS district plan”. 6 (4) “ECFS state plan”. 7 (5) “ECFS system”. 8 (6) “ECFS system fund”. 9 (7) “Ongoing family and community resources”. 10 (8) “Primary prevention strategies”. 11 b. “Early childhood Iowa area”, “early childhood Iowa area 12 board”, and “early childhood Iowa area state board” mean the 13 same as defined in section 256I.1. 14 c. “Early childhood Iowa initiative” means the early 15 childhood Iowa initiative described in section 256I.2. 16 d. “Transition period” means the period beginning on the 17 date of enactment of this division of this Act and concluding 18 on June 30, 2027. 19 2. There is created an early childhood and family services 20 system under the control of the department. Beginning July 21 1, 2027, the department shall be responsible for implementing 22 and maintaining a statewide system of primary prevention 23 strategies, early intervention strategies, and ongoing family 24 and community resources through the ECFS system. 25 3. During the transition period, the department may 26 exercise all policymaking functions and regulatory powers as 27 necessary to establish the ECFS system as if the sections of 28 division I of this Act enacting sections 234A.1 through 234A.5 29 were enacted. 30 4. The department shall perform all the following duties by 31 the conclusion of the transition period: 32 a. Adopt rules pursuant to chapter 17A as necessary to 33 establish, implement, and administer the ECFS system. 34 b. Establish policies as necessary to efficiently 35 -12- LSB 5557SV (2) 91 dg/ko 12/ 24

S.F. 2462 establish, implement, and administer the ECFS system. 1 c. Prepare forms necessary to establish, implement, and 2 administer the ECFS system. 3 d. Prepare an ECFS state plan. 4 e. Develop ECFS district plans. 5 f. Develop a plan for the transition of early childhood and 6 family services to the ECFS system. 7 g. Execute contracts as necessary to establish, implement, 8 and administer the ECFS system. 9 h. Ensure that individuals currently receiving primary 10 prevention strategies, early intervention strategies, services, 11 and supports or ongoing family and community resources under 12 the purview of the department, or home visiting services 13 provided through the early childhood Iowa initiative, have 14 uninterrupted continuity of care. 15 i. Submit a report to the general assembly no later 16 than January 15, 2027, that details the administrative and 17 operational costs to establish, implement, and administer the 18 ECFS system. 19 j. Establish contractual rights, privileges, and 20 responsibilities as necessary to establish, implement, and 21 administer the ECFS system. 22 k. Develop a plan to transition oversight and 23 accountability for home visiting services currently funded by 24 the early childhood Iowa initiative to the ECFS system. 25 l. Work with a cohort of early childhood Iowa area directors 26 designated by the association of early childhood Iowa area 27 boards and advocates, and the early childhood Iowa state 28 board, to develop a plan to modernize the early childhood Iowa 29 initiative. The plan shall include the frequency of work 30 sessions, engagement opportunities for early childhood Iowa 31 partners, and mutually agreed upon deliverables including 32 revisions to chapter 256I. 33 5. If the department determines that a federal waiver 34 or authorization is necessary to administer any provision of 35 -13- LSB 5557SV (2) 91 dg/ko 13/ 24

S.F. 2462 this division of this Act, or to effectuate the ECFS system 1 by the conclusion of the transition period, the department 2 shall timely request the federal waiver or authorization. 3 Notwithstanding any other effective date to the contrary, a 4 provision of this division of this Act that the department 5 determines requires a federal waiver or authorization shall be 6 effective only upon receipt of federal approval for the waiver 7 or authorization. 8 6. a. All debts, claims, or other liabilities owed to 9 an early childhood Iowa area or an early childhood Iowa area 10 board due to home visiting services rendered pursuant to 11 chapter 256I, Code 2026, at the conclusion of the transition 12 period shall remain due and owing after the transition period 13 concludes. 14 b. After the transition period concludes, all fiscal agents 15 contracted with an early childhood Iowa area board shall 16 collect outstanding debts, claims, or other liabilities owed 17 to an early childhood Iowa area or an early childhood Iowa 18 area board for home visiting services pursuant to chapter 256I 19 provided or rendered before the transition period concluded. 20 7. With input from appropriate stakeholders, the department 21 shall identify each home visiting services contract that will 22 be impacted by divisions I through V of this Act. On or before 23 June 30, 2027, each party to a contract identified by the 24 department under this subsection shall exercise the option, if 25 permitted under the terms of the contract, to terminate the 26 contract. Contracts identified under this subsection that do 27 not provide for termination shall not be renewed or extended at 28 the end of the current contract term. 29 8. Unless otherwise provided in this division of this Act, 30 an early childhood Iowa area, an early childhood Iowa area 31 board, an early childhood Iowa area director, or any agent 32 of an early childhood Iowa area or early childhood Iowa area 33 board, and any subdivision of the state, shall not enter into, 34 renew, or extend a home visiting services contract related to 35 -14- LSB 5557SV (2) 91 dg/ko 14/ 24

S.F. 2462 the early childhood Iowa initiative or related activities if 1 the term of the contract would extend past, or the deliverables 2 under the contract would be provided after, June 30, 2027. 3 Sec. 21. EFFECTIVE DATE. This division of this Act, being 4 deemed of immediate importance, takes effect upon enactment. 5 DIVISION V 6 HEALTH AND HUMAN SERVICES DISTRICTS 7 Sec. 22. Section 217.1, Code 2026, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 4. “Health and human services district” or 10 “HHS district” means a geographic, multicounty area designated 11 by the department under section 217.1B for statewide program 12 and service delivery. 13 Sec. 23. NEW SECTION . 217.1B Health and human services 14 districts. 15 1. The department shall divide the entirety of the state 16 into designated health and human services districts. The 17 initial HHS districts shall be the same as the behavioral 18 health districts designated pursuant to section 225A.4, Code 19 2026, and that exist on the effective date of this division 20 of this Act. The department shall review the designated HHS 21 districts at least once every seven consecutive fiscal years. 22 2. a. The department may modify a designated HHS district. 23 When modifying a designated HHS district, the department shall 24 consider all of the following: 25 (1) City and county boundaries. 26 (2) The population size that can be effectively served in a 27 specific area. 28 (3) Areas of high need for services. 29 (4) Patterns various populations exhibit when accessing or 30 receiving services. 31 b. Notwithstanding chapter 17A, the manner in which 32 the modification of an HHS district is made, including the 33 determination of boundaries for a modified HHS district, shall 34 not be subject to judicial review. 35 -15- LSB 5557SV (2) 91 dg/ko 15/ 24

S.F. 2462 3. The department shall adopt rules pursuant to chapter 17A 1 to administer this section. 2 Sec. 24. CONTINGENT EFFECTIVE DATE. This division of this 3 Act takes effect July 1, 2026, unless the sections of 2026 Iowa 4 Acts, LSB 5558 XD, or successor legislation, amending section 5 217.1 and enacting section 217.1B are enacted on or before July 6 1, 2026. 7 DIVISION VI 8 CONFORMING CHANGES 9 Sec. 25. Section 232.69, subsection 1, paragraph b, 10 subparagraph (5), Code 2026, is amended to read as follows: 11 (5) An employee or operator of a licensed child care center, 12 registered child development home, head start program, family 13 development and self-sufficiency grant program under section 14 216A.107 , or healthy opportunities for parents to experience 15 success – healthy families Iowa program under section 135.106 16 234A.5 . 17 Sec. 26. Section 237A.30, subsection 1, Code 2026, is 18 amended to read as follows: 19 1. The department shall work with the early childhood 20 Iowa program established in section 256I.5 in designing and 21 implementing implement a voluntary quality rating system for 22 each provider type of child care facility. 23 Sec. 27. Section 256I.3, subsection 2, paragraph b, Code 24 2026, is amended to read as follows: 25 b. The governor’s appointees shall be selected from 26 individuals nominated by area boards. The nominations shall 27 reflect the range of interests represented on the area boards 28 so that the governor is able to appoint one or more members 29 each for early care, education, health, human services, 30 business, faith, and public interests. At least one of the 31 citizen members shall be a service consumer or the parent of a 32 service consumer. The term of office of the citizen members 33 is three years. A citizen member vacancy on the board shall be 34 filled in the same manner as the original appointment for the 35 -16- LSB 5557SV (2) 91 dg/ko 16/ 24

S.F. 2462 balance of the unexpired term. 1 Sec. 28. Section 256I.13, subsection 1, Code 2026, is 2 amended to read as follows: 3 1. In order to implement the legislative intent stated 4 in sections 135.106 and section 256I.9 , that priority for 5 family support program funding be given to programs using 6 evidence-based or promising models for family support, it is 7 the intent of the general assembly that ninety percent of state 8 funds expended for family support programs shall be used for 9 evidence-based or promising program models. The remaining ten 10 percent of funds may be used for innovative program models that 11 do not yet meet the definition of evidence-based or promising 12 programs. 13 Sec. 29. EFFECTIVE DATE. This division of this Act takes 14 effect July 1, 2027. 15 DIVISION VII 16 CHILD CARE WORKFORCE —— STATE CHILD CARE ASSISTANCE ELIGIBILITY 17 Sec. 30. NEW SECTION . 237A.15 State child care assistance 18 —— child care workforce eligibility. 19 1. Notwithstanding any provision of section 237A.13 or 20 237A.14 to the contrary, a child shall be eligible for the 21 state child care assistance program established in section 22 237A.13 and the state child care assistance graduated 23 eligibility phase-out program established in section 237A.14 if 24 a parent, guardian, or custodian of the child meets all of the 25 following requirements, as applicable: 26 a. The parent, guardian, or custodian is employed in this 27 state at a child care facility or child care home that has an 28 agreement with the department to accept reimbursements from the 29 state child care assistance program. 30 b. The parent, guardian, or custodian works an average 31 minimum of thirty-two hours per week. A portion of the hours 32 worked, as specified by the department, must be in a position 33 with a primary duty of providing child care directly to 34 children, and the parent’s, guardian’s, or custodian’s position 35 -17- LSB 5557SV (2) 91 dg/ko 17/ 24

S.F. 2462 must be regularly counted in the minimum child-to-staff ratio 1 established by the department. 2 c. (1) If the parent, guardian, or custodian is employed 3 at a child care home or a child development home, the parent, 4 guardian, or custodian does not provide child care to the 5 parent’s, guardian’s, or custodian’s own child. 6 (2) Notwithstanding subparagraph (1), a co-provider at 7 a child development home may qualify for state child care 8 assistance if the co-provider meets all requirements specified 9 in this section and by the department by rule. 10 d. The parent, guardian, or custodian is not a substitute or 11 an assistant at a child care home or a child development home. 12 e. Based on the department’s evaluation of the parent’s, 13 guardian’s, or custodian’s application for state child care 14 assistance, the department has determined the parent, guardian, 15 or custodian has a need for child care. 16 f. The parent, guardian, or custodian is not the owner of 17 the child care facility or child care home where any of the 18 parent’s, guardian’s, or custodian’s children are enrolled. 19 2. A child of a director, co-director, or other 20 administrative staff member of a child care facility may 21 qualify for state child care assistance under subsection 1 22 if the director, co-director, or other administrative staff 23 member is regularly counted in the minimum child-to-staff ratio 24 established by the department by rule. 25 3. A parent, guardian, or custodian of a child participating 26 in the state child care assistance program based on eligibility 27 established under this section shall make copayments as 28 specified by the department by rule. 29 4. The department shall adopt rules pursuant to chapter 17A 30 to administer this section. 31 Sec. 31. EMERGENCY RULES. The department of health and 32 human services may adopt emergency rules under section 17A.4, 33 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 34 to implement the provisions of this division of this Act and 35 -18- LSB 5557SV (2) 91 dg/ko 18/ 24

S.F. 2462 the rules shall be effective immediately upon filing unless 1 a later date is specified in the rules. Any rules adopted 2 in accordance with this section shall also be published as a 3 notice of intended action as provided in section 17A.4. 4 Sec. 32. EFFECTIVE DATE. This division of this Act, being 5 deemed of immediate importance, takes effect upon enactment. 6 DIVISION VIII 7 CODE EDITOR DIRECTIVES 8 Sec. 33. CODE EDITOR DIRECTIVES. The Code editor is 9 directed to do all of the following: 10 1. Make changes in any Code sections amended or enacted 11 by any other Act to correspond with the changes made in this 12 Act if there appears to be no doubt as to the proper method of 13 making the changes and the changes would not be contrary to or 14 inconsistent with the purposes of this Act or any other Act. 15 2. Correct internal references in the Code and in enacted 16 legislation as necessary due to the enactment of this Act. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to early childhood and family services, 21 including creation of an early childhood and family services 22 (ECFS) system and child care workforce eligibility for state 23 child care assistance (CCA). 24 DIVISION I —— EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM. 25 The bill creates new Code chapter 234A (early childhood and 26 family services system). The purpose of the ECFS system is 27 to provide accessible, ongoing, and community-based services 28 for children and families. The bill defines terms used in the 29 chapter. 30 The ECFS system is established under the control of 31 the department of health and human services (HHS) and 32 ECFS districts (districts) are established for statewide 33 implementation of primary prevention strategies and early 34 intervention strategies for families and their children under 35 -19- LSB 5557SV (2) 91 dg/ko 19/ 24

S.F. 2462 19 years of age. The ECFS system must be administered in 1 a manner that maximizes funding opportunities, interagency 2 collaboration, and integration of activities and services that 3 support positive outcomes for children and families. 4 The bill details actions HHS must perform, to the extent 5 funding is available, to develop and administer the ECFS 6 system. 7 The bill directs HHS to establish an ECFS district advisory 8 council (council) in each district, and develop policies and 9 procedures for the operational functions of the councils. A 10 council shall consist of 10 members appointed by HHS. The bill 11 specifies individuals who are eligible for appointment, and the 12 duties of a council. 13 The bill specifies the duties of HHS related to data 14 collection and use for the ECFS system. The bill requires 15 HHS to maintain compliance with applicable federal and state 16 privacy laws to ensure the confidentiality and integrity of 17 individually identifiable data related to the ECFS system 18 collected by HHS. 19 Current Code section 135.106 (healthy opportunities 20 for parents to experience success – healthy families Iowa 21 (HOPES-HFI)) is placed in the new Code chapter and becomes part 22 of the ECFS system. The bill specifies the requirements for 23 the HOPES-HFI program and directs HHS to develop and administer 24 the HOPES-HFI program, in whole or in part, by contracting 25 with local organizations that use evidence-based home visiting 26 models. 27 The bill establishes an ECFS system fund (ECFS fund) 28 consisting of moneys appropriated to HHS for the ECFS fund’s 29 purposes by the general assembly and any other moneys available 30 and obtained or accepted by HHS for deposit in the ECFS 31 fund. Moneys in the ECFS fund are appropriated to HHS for the 32 purposes of implementing and administering the ECFS system. 33 Moneys appropriated that remain unencumbered or unobligated at 34 the close of a fiscal year shall not revert to the general fund 35 -20- LSB 5557SV (2) 91 dg/ko 20/ 24