Senate File 2488 - Introduced SENATE FILE 2488 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 2462) (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, making appropriations, and including 3 applicability, retroactive applicability, and effective date 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5557SZ (3) 91 dg/ko

S.F. 2488 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 5557SZ (3) 91 dg/ko 1/ 25

S.F. 2488 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 5557SZ (3) 91 dg/ko 2/ 25

S.F. 2488 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 5557SZ (3) 91 dg/ko 3/ 25

S.F. 2488 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 5557SZ (3) 91 dg/ko 4/ 25

S.F. 2488 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 5557SZ (3) 91 dg/ko 5/ 25

S.F. 2488 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 to 10 health, education, domestic assault response, abuse response, 11 or community-based child abuse prevention. 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 5557SZ (3) 91 dg/ko 6/ 25

S.F. 2488 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 5557SZ (3) 91 dg/ko 7/ 25

S.F. 2488 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 5557SZ (3) 91 dg/ko 8/ 25

S.F. 2488 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 section of this division of 5 this Act enacting section 234A.6, being deemed of immediate 6 importance, takes effect upon enactment. 7 DIVISION II 8 DECATEGORIZATION INITIATIVE 9 Sec. 9. Section 235.7, subsection 2, Code 2026, is amended 10 to read as follows: 11 2. Membership. The department may authorize the governance 12 boards of decategorization of child welfare and juvenile 13 justice funding projects established under section 232.188 to 14 appoint the transition committee membership and may utilize 15 the boundaries of decategorization projects to establish 16 the service areas for transition committees. The committee 17 A committee’s membership may include but is not limited to 18 department staff involved with foster care, child welfare, 19 and adult services, juvenile court services staff, staff 20 involved with county general assistance or emergency relief 21 under chapter 251 or 252 , school district and area education 22 agency staff involved with special education, and a child’s 23 court appointed special advocate, guardian ad litem, service 24 providers, and other persons knowledgeable about the child. 25 Sec. 10. Section 237A.1, subsection 2, paragraph j, 26 subparagraph (2), Code 2026, is amended by striking the 27 subparagraph. 28 Sec. 11. Section 249A.26, subsection 5, Code 2026, is 29 amended by striking the subsection. 30 Sec. 12. Section 256I.4, subsection 6, Code 2026, is amended 31 by striking the subsection. 32 Sec. 13. REPEAL. Section 232.188, Code 2026, is repealed. 33 Sec. 14. DECATEGORIZATION CARRYOVER FUNDING. 34 1. For purposes of this section, unless the context 35 -9- LSB 5557SZ (3) 91 dg/ko 9/ 25

S.F. 2488 otherwise requires: 1 a. “Carryover funding” means unobligated or unencumbered 2 moneys described in section 232.188, subsection 5, paragraph 3 “b”, Code 2026, at the close of the fiscal year beginning July 4 1, 2025. 5 b. “Decategorization initiative” means the services and 6 activities funded through a funding pool. 7 c. “Department” means the department of health and human 8 services. 9 d. “Funding pool” means the same as defined in section 10 232.188, Code 2026. 11 e. “Governance board” means the same as defined in section 12 232.188, Code 2026. 13 2. Carryover funding that remains in a funding pool at 14 the close of the fiscal year beginning Ju1y 1, 2025, which 15 has been encumbered or obligated by the governance board for 16 a decategorization initiative or by contract beyond that 17 fiscal year, shall remain available for expenditure to ensure 18 continuation of such decategorization initiative or contract 19 until the close of the fiscal year beginning July 1, 2026, 20 or as otherwise agreed by the department and juvenile court 21 services after receiving input from appropriate stakeholders 22 under subsection 4. 23 3. Carryover funding that remains in a funding pool at 24 the end of the fiscal year beginning July 1, 2025, which 25 remains unencumbered or unobligated by the governance board 26 for a decategorization initiative or contract at the close of 27 the fiscal year, shall be appropriated to the department and 28 juvenile court services proportionately based on the percentage 29 of moneys appropriated to each entity by the general assembly 30 for decategorization initiatives. 31 4. a. With input from appropriate stakeholders, the 32 department and juvenile court services shall identify each 33 contract funded through a funding pool impacted by this 34 division of this Act. 35 -10- LSB 5557SZ (3) 91 dg/ko 10/ 25

S.F. 2488 b. On or before January 1, 2027, the department or juvenile 1 court services shall evaluate each contract identified under 2 paragraph “a” to determine the following: 3 (1) If permitted by the terms of a contract, whether the 4 state should exercise the option to terminate the contract or 5 continue the contract until the end of the current contract 6 term. 7 (2) If the option to terminate a contract is not permitted 8 by the terms of the contract, whether the contract should be 9 renewed or extended at the end of the current contract term. 10 (3) Whether the department or juvenile court services 11 should assume responsibility for a contract for the remainder 12 of the current term of the contract, for the term of the 13 renewed contract, or for the term of the extended contract to 14 avoid service interruption. 15 c. Unless otherwise provided under this section, a 16 governance board or other entity shall not enter into a 17 contract funded through a funding pool after the effective date 18 of this section of this division of this Act if the term of the 19 contract extends past, or the deliverables under the contract 20 would be provided after, June 30, 2027. 21 Sec. 15. EFFECTIVE DATE. The section of this division of 22 this Act related to decategorization carryover funding, being 23 deemed of immediate importance, takes effect upon enactment. 24 Sec. 16. RETROACTIVE APPLICABILITY. The section of this 25 division of this Act related to decategorization carryover 26 funding applies retroactively to July 1, 2025. 27 DIVISION III 28 CHILD ABUSE PREVENTION PROGRAM 29 Sec. 17. Section 144.13A, subsection 5, paragraph a, Code 30 2026, is amended to read as follows: 31 a. Ten dollars of each registration fee is appropriated and 32 shall be used for primary and secondary child abuse prevention 33 programs pursuant to section 235A.1 , and ten dollars of each 34 registration fee is appropriated and shall be used for the 35 -11- LSB 5557SZ (3) 91 dg/ko 11/ 25

S.F. 2488 congenital and inherited disorders central registry established 1 pursuant to section 136A.6 . Notwithstanding section 8.33 , 2 moneys appropriated in this paragraph that remain unencumbered 3 or unobligated at the close of the fiscal year shall not revert 4 but shall remain available for expenditure for the purposes 5 designated until the close of the succeeding fiscal year, and 6 shall not be transferred, used, obligated, appropriated, or 7 otherwise encumbered except as provided in this paragraph. 8 Sec. 18. Section 422.12K, Code 2026, is amended to read as 9 follows: 10 422.12K Income tax checkoff for child abuse prevention 11 program fund . 12 1. A person who files an individual or a joint income tax 13 return with the department of revenue under section 422.13 may 14 designate one dollar or more to be paid to the child abuse 15 prevention program early childhood and family services system 16 fund created in section 235A.2 234A.6, to be used for the 17 purpose of child abuse prevention . If the refund due on the 18 return or the payment remitted with the return is insufficient 19 to pay the additional amount designated by the taxpayer to 20 the child abuse prevention program early childhood and family 21 services system fund, the amount designated shall be reduced to 22 the remaining amount remitted with the return. The designation 23 of a contribution to the child abuse prevention program early 24 childhood and family services system fund under this section 25 is irrevocable. 26 2. The director of revenue shall draft the income tax form 27 to allow the designation of contributions to the child abuse 28 prevention program early childhood and family services system 29 fund on the tax return. The department of revenue, on or 30 before January 31, shall transfer the total amount designated 31 on the tax return forms due in the preceding calendar year to 32 the child abuse prevention program early childhood and family 33 services system fund. However, before a checkoff pursuant 34 to this section shall be permitted, all liabilities on the 35 -12- LSB 5557SZ (3) 91 dg/ko 12/ 25

S.F. 2488 books of the department and accounts identified as owing under 1 section 421.65 shall be satisfied. 2 3. The department of health and human services may authorize 3 payment of moneys from the child abuse prevention program early 4 childhood and family services system fund for the purpose 5 of child abuse prevention in accordance with section 235A.2 6 234A.6 . 7 4. The department of revenue shall adopt rules to administer 8 this section . 9 5. This section is subject to repeal under section 422.12E . 10 Sec. 19. REPEAL. Sections 235A.1, 235A.2, and 235A.3, Code 11 2026, are repealed. 12 Sec. 20. CHILD ABUSE PREVENTION PROGRAM FUND —— TRANSFER 13 OF MONEYS. Any unencumbered or unobligated moneys remaining 14 in the child abuse prevention program fund created in section 15 235A.2, on June 30, 2026, shall be transferred to the early 16 childhood and family services system fund created in section 17 234A.6, as enacted in this Act. 18 Sec. 21. CHILD ABUSE PREVENTION PROGRAM —— REVIEW OF 19 CONTRACTS IMPACTED BY TRANSITION TO THE EARLY CHILDHOOD 20 AND FAMILY SERVICES SYSTEM. With input from appropriate 21 stakeholders, the department shall review the child abuse 22 prevention program’s contract for program administration and 23 each grant project funded through the child abuse prevention 24 program for the fiscal year beginning July 1, 2025, and ending 25 June 30, 2026, impacted by this division of this Act. The 26 department shall work with the child abuse prevention program’s 27 program administrator, local child abuse stakeholders, and 28 grant project recipients to transition the funding and child 29 abuse prevention administration and service delivery to the 30 early childhood and family services system established in 31 division I of this Act. 32 Sec. 22. EFFECTIVE DATE. The section of this division of 33 this Act relating to the review of contracts impacted by the 34 transition of the child abuse prevention program to the early 35 -13- LSB 5557SZ (3) 91 dg/ko 13/ 25

S.F. 2488 childhood and family services system, being deemed of immediate 1 importance, takes effect upon enactment. 2 Sec. 23. RETROACTIVE APPLICABILITY. The section of this 3 division of this Act relating to the review of contracts 4 impacted by the transition of the child abuse prevention 5 program to the early childhood and family services system 6 applies retroactively to July 1, 2025. 7 DIVISION IV 8 EARLY CHILDHOOD IOWA INITIATIVE —— HOME VISITING SERVICES 9 ADMINISTRATION TRANSITION 10 Sec. 24. EARLY CHILDHOOD IOWA INITIATIVE —— HOME VISITING 11 SERVICES ADMINISTRATION TRANSITION. 12 1. For purposes of this section, unless the context 13 otherwise requires: 14 a. “Department” means the department of health and human 15 services. 16 b. “Early childhood Iowa area” means the same as defined in 17 section 256I.1. 18 c. “Early childhood Iowa area board” means the same as 19 defined in section 256I.1. 20 d. “Early childhood Iowa initiative” means the same as 21 described in section 256I.2. 22 e. “ECFS system” means the same as defined in section 23 234A.1, as enacted in division I of this Act. 24 f. “Transition period” means the period beginning on the 25 date of enactment of this division of this Act and concluding 26 January 1, 2028. 27 2. During the transition period, the department shall 28 develop and implement a plan to transfer administration of home 29 visiting services currently funded by the early childhood Iowa 30 initiative to the ECFS system by the end of the transition 31 period. The plan to transfer the administration of home 32 visiting services shall, at a minimum, include all of the 33 following: 34 a. The amount of funding expended through each early 35 -14- LSB 5557SZ (3) 91 dg/ko 14/ 25

S.F. 2488 childhood Iowa area and each early childhood Iowa area board 1 for home visiting services for which administration has not yet 2 transferred to the ECFS system shall be no less than the amount 3 expended through each early childhood Iowa area and each early 4 childhood Iowa area board for home visiting services during the 5 fiscal year beginning July 1, 2025, and ending June 30, 2026. 6 b. An amount of state funding equal to the aggregate amount 7 of state funding expended during the fiscal year beginning 8 July 1, 2025, and ending June 30, 2026, by the early childhood 9 Iowa initiative for home visiting services shall be available 10 for expenditure on home visiting services for families with 11 children age five and under. 12 c. With input from appropriate stakeholders, the department 13 shall identify each home visiting services contract under 14 the purview of an early childhood Iowa area or an early 15 childhood Iowa area board. Prior to the end of the transition 16 period, the department shall, if permitted by the terms of 17 the contract, exercise the option to terminate each contract 18 identified under this paragraph. If a contract does not permit 19 early termination of the contract, the contract shall be 20 terminated at the end of the current term of the contract. A 21 contract identified under this paragraph shall not be renewed 22 or extended at the end of the current contract term. 23 d. All debts, claims, or other liabilities owed to an early 24 childhood Iowa area or an early childhood Iowa area board due 25 to home visiting services provided or rendered pursuant to 26 chapter 256I shall remain due and owing after administration 27 of home visiting services is transferred to the ECFS system 28 and after the end of the transition period. Each fiscal agent 29 contracted with an early childhood Iowa area board shall 30 collect outstanding debts, claims, or other liabilities owed 31 to the early childhood Iowa area board or the early childhood 32 Iowa area board’s early childhood Iowa area for home visiting 33 services rendered pursuant to chapter 256I before the date the 34 home visiting service was transferred to the ECFS system or 35 -15- LSB 5557SZ (3) 91 dg/ko 15/ 25

S.F. 2488 before the end of the transition period, whichever occurred 1 first. 2 e. An early childhood Iowa area, an early childhood Iowa 3 area board, an early childhood Iowa area director, an agent of 4 an early childhood Iowa area, an agent of an early childhood 5 Iowa area board, or a subdivision of the state shall not enter 6 into, renew, or extend a home visiting services contract 7 related to the early childhood Iowa initiative or related 8 activities if the term of the contract extends past, or the 9 deliverables under the contract would be provided after, 10 the date administration of the home visiting services is 11 transferred to the ECFS system or the end of the transition 12 period, whichever occurs first. 13 f. The department shall ensure that individuals currently 14 receiving home visiting services provided through the early 15 childhood Iowa initiative have uninterrupted continuity of care 16 during the transition period. 17 g. The department shall maintain ongoing communication 18 with, and provide a means to receive input from, each early 19 childhood Iowa area board during the process to select home 20 visiting services providers in the early childhood Iowa area 21 board’s respective early childhood Iowa area. The department 22 shall also ensure that each contract the department enters into 23 for home visiting services requires that the contracted home 24 visiting services provider inform each early childhood Iowa 25 area board of an early childhood Iowa area in which the home 26 visiting services provider will provide home visiting services. 27 3. During and after the transfer of administration of home 28 visiting services to the ECFS system, and contingent upon the 29 department’s receipt of additional federal funds for home 30 visiting services pursuant to the Social Security Act, Tit. 31 IV-E, the department shall annually redistribute through the 32 early childhood Iowa initiative the following percentages, 33 up to seven million dollars, of the additional federal funds 34 received for coordination of early childhood services for 35 -16- LSB 5557SZ (3) 91 dg/ko 16/ 25

S.F. 2488 children from age zero through age five: 1 a. For the fiscal year beginning July 1, 2027, and ending 2 June 30, 2028, twenty-five percent. 3 b. For the fiscal year beginning July 1, 2028, and ending 4 June 30, 2029, fifteen percent. 5 c. For the fiscal year beginning July 1, 2029, and ending 6 June 30, 2030, five percent. 7 DIVISION V 8 EARLY CHILDHOOD IOWA INITIATIVE —— EVALUATION —— REPORT 9 Sec. 25. EARLY CHILDHOOD IOWA INITIATIVE —— EVALUATION —— 10 REPORT. 11 1. For purposes of this division, unless the context 12 otherwise requires: 13 a. “Department” means the department of health and human 14 services. 15 b. “Early childhood Iowa initiative” means the early 16 childhood Iowa initiative described in section 256I.2. 17 c. “Early childhood Iowa state board” means the same as 18 defined in section 256I.1. 19 d. “ECFS system” means the same as defined in section 20 234A.1, as enacted in division I of this Act. 21 2. a. The department, in collaboration with the association 22 of early childhood Iowa area boards and advocates, and 23 the early childhood Iowa state board, shall evaluate the 24 operational functions of the early childhood Iowa initiative 25 and the feasibility and potential impacts of leveraging 26 additional federal resources to inform recommendations to 27 modernize early childhood Iowa initiative operations to 28 support statewide prevention activities designed to strengthen 29 families. The department shall provide administrative support 30 for the evaluation by facilitating the collection and analysis 31 of information and compiling a final report. 32 b. The department shall collect information through means 33 including but not limited to work groups, focus groups, and 34 surveys to accomplish all of the following: 35 -17- LSB 5557SZ (3) 91 dg/ko 17/ 25

S.F. 2488 (1) Identify opportunities to modernize the early 1 childhood Iowa initiative’s operational functions including 2 administration, financing, personnel, and reporting. 3 (2) Evaluate the early childhood Iowa initiative’s service 4 access, quality, and coordination. 5 (3) Assess the fiscal and operational impacts to the early 6 childhood Iowa initiative using a new funding allocation 7 methodology. 8 (4) Assess the operational impacts on the department in 9 managing additional federal funding for early childhood and 10 family support services. 11 c. The association of early childhood Iowa area boards 12 and advocates, and the early childhood Iowa state board, 13 shall review the final report compiled by the department 14 under paragraph “a” prior to the department submitting the 15 final report to the governor and the general assembly. The 16 department shall submit the final report to the governor and 17 the general assembly no later than February 5, 2027. The final 18 report shall include all of the following: 19 (1) A summary of the department’s evaluation under 20 paragraph “a” and the findings from that evaluation. 21 (2) Recommended revisions to chapter 256I that address, at a 22 minimum, all of the following: 23 (a) Alignment and efficiencies. 24 (b) Operational functions including administration, 25 financing, personnel, and reporting. 26 (c) The relationship between the early childhood Iowa 27 initiative and the ECFS system. 28 (3) A transition plan for implementing the revisions 29 recommended under subparagraph (2) that maintains continuity of 30 service delivery. 31 DIVISION VI 32 HEALTH AND HUMAN SERVICES DISTRICTS 33 Sec. 26. Section 217.1, Code 2026, is amended by adding the 34 following new subsection: 35 -18- LSB 5557SZ (3) 91 dg/ko 18/ 25

S.F. 2488 NEW SUBSECTION . 4. “Health and human services district” or 1 “HHS district” means a geographic, multicounty area designated 2 by the department under section 217.1B for statewide program 3 and service delivery. 4 Sec. 27. NEW SECTION . 217.1B Health and human services 5 districts. 6 1. The department shall divide the entirety of the state 7 into designated health and human services districts. The 8 initial HHS districts shall be the same as the behavioral 9 health districts designated pursuant to section 225A.4, Code 10 2026, and that exist on the effective date of this division 11 of this Act. Beginning the calendar year that begins January 12 1, 2032, and every ten consecutive calendar years thereafter, 13 the department shall review the efficacy of the designated HHS 14 districts in performing the HHS districts’ functions during the 15 immediately preceding ten consecutive calendar years. 16 2. a. The department may modify a designated HHS district. 17 When modifying a designated HHS district, the department shall 18 consider all of the following: 19 (1) City and county boundaries. 20 (2) The population size that can be effectively served in a 21 specific area. 22 (3) Areas of high need for services. 23 (4) Patterns various populations exhibit when accessing or 24 receiving services. 25 b. Notwithstanding chapter 17A, the manner in which 26 the modification of an HHS district is made, including the 27 determination of boundaries for a modified HHS district, shall 28 not be subject to judicial review. 29 3. The department shall adopt rules pursuant to chapter 17A 30 to administer this section. 31 Sec. 28. CONTINGENT EFFECTIVE DATE. This division of this 32 Act takes effect July 1, 2026, unless the sections of 2026 Iowa 33 Acts, LSB 5558 XD, or successor legislation, amending section 34 217.1 and enacting section 217.1B are enacted on or before July 35 -19- LSB 5557SZ (3) 91 dg/ko 19/ 25

S.F. 2488 1, 2026. 1 DIVISION VII 2 CONFORMING CHANGES 3 Sec. 29. Section 232.69, subsection 1, paragraph b, 4 subparagraph (5), Code 2026, is amended to read as follows: 5 (5) An employee or operator of a licensed child care center, 6 registered child development home, head start program, family 7 development and self-sufficiency grant program under section 8 216A.107 , or healthy opportunities for parents to experience 9 success – healthy families Iowa program under section 135.106 10 234A.5 . 11 Sec. 30. Section 237A.30, subsection 1, Code 2026, is 12 amended to read as follows: 13 1. The department shall work with the early childhood 14 Iowa program established in section 256I.5 in designing and 15 implementing implement a voluntary quality rating system for 16 each provider type of child care facility. 17 Sec. 31. Section 256I.13, subsection 1, Code 2026, is 18 amended to read as follows: 19 1. In order to implement the legislative intent stated 20 in sections 135.106 and section 256I.9 , that priority for 21 family support program funding be given to programs using 22 evidence-based or promising models for family support, it is 23 the intent of the general assembly that ninety percent of state 24 funds expended for family support programs shall be used for 25 evidence-based or promising program models. The remaining ten 26 percent of funds may be used for innovative program models that 27 do not yet meet the definition of evidence-based or promising 28 programs. 29 DIVISION VIII 30 CODE EDITOR DIRECTIVES 31 Sec. 32. CODE EDITOR DIRECTIVES. The Code editor is 32 directed to do all of the following: 33 1. Make changes in any Code sections amended or enacted 34 by any other Act to correspond with the changes made in this 35 -20- LSB 5557SZ (3) 91 dg/ko 20/ 25