SF 2488 (LSB 5557SZ (3) 91)

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, including the creation of an early childhood and family services system, making appropriations, and including applicability, retroactive applicability, and effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM

    Section 1.  NEW SECTION.  234A.1  Definitions.
   For the purposes of this chapter, unless the context otherwise requires:
   1.  “Community resources” means locally focused, strength-based programs and supports that aim to enhance family functioning and resilience, promote child development and safety, and prevent future involvement with child protective services or the juvenile justice system.
   2.  “Department” means the department of health and human services.
   3.  “Early childhood and family services district” or “ECFS district” means a health and human services district utilized for the purpose of administering the ECFS system.
   4.  “Early childhood and family services district advisory council” or “ECFS district advisory council” means an advisory council established under section 234A.3.
   5.  “Early childhood and family services district plan” or “ECFS district plan” means a plan developed by the department to outline the ECFS system infrastructure of a district and the programs and services intended to be provided within that district.
   6.  “Early childhood and family services state plan” or “ECFS state plan” means the plan developed by the department that describes the key components of the state’s ECFS system.
   7.  “Early childhood and family services system” or “ECFS system” means the system established in section 234A.2.
   8.  “Early childhood and family services system fund” or “ECFS system fund” means the fund created in section 234A.6.
   9.  “Early intervention strategies” means services and supports designed to proactively identify and address risk factors and includes services that aim to strengthen families, promote healthy development, and reduce the likelihood of abuse or neglect by providing timely, targeted assistance to children and caregivers through the ECFS system.
   10.  “Evidence-based” means practices, programs, and policies grounded in the best available research and data, and that have been scientifically tested and shown to be effective through rigorous evaluation.
   11.  “Family support services” include group-based parent education and home visiting programs designed to strengthen protective factors including parenting skills, increase parental knowledge of child development, and increase family functioning and problem-solving skills. Family support services may be used as an early intervention strategy to improve birth outcomes, parental knowledge, family economic success, the home learning environment, family and child involvement with others, and coordination with other community resources. Family support services may have a specific focus on preventing child maltreatment or ensuring children are safe, healthy, and ready to succeed in school.
   12.  “Health and human services district” means the same as defined in section 217.1.
   13.  “HOPES-HFI program” means the healthy opportunities for parents to experience success – healthy families Iowa program established in section 234A.5.
   14.  “Ongoing family and community resources” means a continuum of sustained, accessible, and family-centered resources provided through the ECFS system that help families meet their needs, strengthen protective factors, and prevent child abuse and neglect.
   15.  “Primary prevention strategies” means a comprehensive set of services and supports provided through the ECFS system that are designed to strengthen families, promote healthy child development, and prevent adverse outcomes before they occur. These activities focus on addressing the underlying social, economic, and environmental conditions that place children and families at risk, such as poverty, social isolation, and lack of access to quality early care and education.
   16.  “Protective factor” means an inherent strength, resource, or capacity of a family, or a resource that helps a family thrive, buffer against stress, and reduce the likelihood of child abuse, neglect, or other poor outcome.
   17.  “Strength-based” means an approach that focuses on identifying and building upon the inherent strengths, resources, and capacities of a family to support the family’s growth, resilience, and well-being.
    Sec. 2.  NEW SECTION.  234A.2  Early childhood and family services system —— department powers and duties.
   1.  An early childhood and family services system is established under the control of the department for the purposes of implementing a statewide array of primary prevention strategies, early intervention strategies, and ongoing family and community resources for families and their children under nineteen years of age.
   2.  The ECFS system shall be administered in a manner to maximize funding opportunities, interagency collaboration, and integration of activities and services that support positive outcomes for children and families.
   3.  The ECFS system shall support equitable statewide access to all services, supports, and other resources offered through the ECFS system that, at a minimum, shall include all of the following:
   a.  Evidence-based primary prevention strategies, including family support services, designed to assist families in establishing healthy, successful futures.
   b.  Tailored early intervention strategies for children and families to ensure long-term well-being, including economic self-sufficiency.
   c.  Ongoing family and community resources for children and families to address the root causes of child abuse and neglect and enhance protective factors.
   d.  Specific service components including early childhood services, evidence-based family support services, and community resources.
   4.  To the extent funding is available, the department shall do all of the following to develop and administer the ECFS system and carry out the department’s duties under this chapter:
   a.  Plan, establish, and maintain primary prevention strategies, early intervention strategies, and ongoing family and community resources.
   b.  (1)  Develop an early childhood and family services state plan that is consistent with the department’s agency strategic plan adopted pursuant to section 8E.204, and the state health improvement plan developed under section 217.17.
   (2)  When developing the ECFS state plan, the department shall do all of the following:
   (a)  Collaborate with stakeholders including but not limited to experienced public health and medical providers, law enforcement, educators, the early childhood Iowa state board, the early childhood Iowa area boards, and organizations that represent populations including but not limited to children to be served by the ECFS system.
   (b)  Publish the proposed ECFS state plan on the department’s internet site and allow the public to review and comment on the proposed ECFS state plan prior to adoption.
   c.  Administer the ECFS system in each ECFS district based on early childhood and family services district plans.
   d.  Develop ECFS district plans in collaboration with ECFS system partners and stakeholders.
   e.  Establish ECFS district advisory councils pursuant to section 234A.3.
   f.  Coordinate administration of each ECFS district plan with federal and state resources.
   g.  Enter into contracts as necessary to perform activities, and provide services, supports, and other resources in accordance with each ECFS district plan.
   h.  Coordinate district activities with other state agencies and state-funded initiatives that support positive outcomes for children and families.
   i.  Administer and distribute federal aid received, and state appropriations, grants, and other moneys deposited into the early childhood and family services system fund.
   j.  Oversee, provide technical assistance to, and monitor department contractors to ensure compliance with ECFS district plans.
   k.  Establish and maintain data collection and management information systems to identify, collect, and analyze service outcomes and performance data to address the needs of clients, providers, the department, and ECFS system programs.
   l.  Collect, maintain, monitor, analyze, and utilize information including but not limited to ECFS client records and programmatic, state, and national data, engage in studies and analyses, and gather relevant statistics to understand emerging needs and effectively deploy information, resources, and technical assistance in response.
   m.  Adopt rules pursuant to chapter 17A to administer this chapter.
   n.  Take any other necessary actions to execute the department’s duties under this chapter or maintain compliance with federal requirements.
   5.  The department may do all of the following to develop and administer the ECFS system:
   a.  Cooperate with any state agency, political subdivision, or federal governmental agency to apply for grants.
   b.  Solicit and accept for use any gift of money, by will or otherwise, and any grant of money or services from the federal government, the state, a political subdivision of the state or federal government, or a private source.
    Sec. 3.  NEW SECTION.  234A.3  Early childhood and family services district advisory councils.
   1.  The department shall establish an early childhood and family services district advisory council in each ECFS district. The department shall develop policies and procedures for the operational functions of each ECFS district advisory council.
   2.  An ECFS district advisory council shall consist of ten members appointed by the department. Individuals eligible for appointment include but are not limited to all of the following:
   a.  Elected public officials who currently hold office within the ECFS district.
   b.  Individuals who have experience or expertise related to health, education, domestic assault response, abuse response, or community-based child abuse prevention.
   c.  Individuals who are representative of the populations served in the ECFS district advisory council’s ECFS district.
   d.  Individuals who represent the faith community or community partners in the ECFS district advisory council’s ECFS district.
   3.  An ECFS district advisory council shall do all of the following:
   a.  Identify opportunities and address challenges based on updates received from the department relating to the implementation of the ECFS district plan for the ECFS district advisory council’s ECFS district.
   b.  Provide feedback to the department while the department is developing ECFS system policies.
   c.  Advise the department on how to best provide families access to primary prevention strategies, early intervention strategies, and ongoing family and community resources throughout the ECFS district advisory council’s ECFS district.
   4.  An ECFS district advisory council shall perform the duties required under this section regardless of whether any seat on the ECFS district advisory council is vacant.
    Sec. 4.  NEW SECTION.  234A.4  Data collection and use.
   1.  The department shall perform all of the following actions related to ECFS system data:
   a.  (1)  Collect, maintain, monitor, analyze, and utilize data, including but not limited to child welfare data, Medicaid data, ECFS system data, and other data depicting the status of children and families in the state, as necessary to issue cost estimates for serving populations, make and receive payments, conduct operations, and perform ECFS system activities.
   (2)  When performing duties under this paragraph, the department shall maintain compliance with applicable federal and state privacy laws to ensure the confidentiality and integrity of individually identifiable data.
   (3)  The department shall periodically assess the status of the department’s compliance with subparagraph (2) to ensure that data collected and maintained by the department under this paragraph is protected.
   b.  To the extent possible, establish a record for each individual receiving publicly funded ECFS system services. Each record established under this paragraph shall include a unique client identifier for the purposes of identifying and tracking the individual’s record.
   c.  Consult with department contractors and other ECFS system stakeholders on an ongoing basis relating to the administration of the ECFS system, including but not limited to reviewing trends and outcomes as indicators for improving or modifying administration of the ECFS system.
   d.  Engage with entities that maintain information the department is required to collect pursuant to this section to integrate data relating to individuals receiving ECFS system services.
   e.  Engage with entities that maintain general population data relating to the ECFS system to develop action plans, create projections relating to a population’s ECFS system needs, develop ECFS system policies, and otherwise perform activities as necessary to support families in achieving a healthy, successful future.
   2.  The department shall ensure that public and private agencies, organizations, and individuals that operate within the ECFS system use uniform methods to maintain statistical information relating to ECFS system outcomes and performance.
    Sec. 5.  NEW SECTION.  234A.5  Healthy families programs —— HOPES-HFI program.
   1.  The department may establish the HOPES-HFI program to provide services to families and children during a child’s prenatal through preschool years. If established, the HOPES-HFI program shall do all of the following:
   a.  Promote optimal child health and development.
   b.  Improve family coping skills and functioning.
   c.  Promote positive parenting skills and intrafamilial interaction.
   d.  Prevent child abuse, child neglect, infant mortality, and infant morbidity.
   2.  The department shall administer the HOPES-HFI program, in whole or in part, by contracting with local organizations that use evidence-based home visiting models.
    Sec. 6.  NEW SECTION.  234A.6  Early childhood and family services system fund.
   1.  An early childhood and family services system fund is created in the state treasury under the control of the department and consisting of any moneys appropriated to the department for the ECFS system fund’s purposes by the general assembly and any other moneys available and obtained or accepted by the department for deposit in the ECFS system fund. The ECFS system fund shall be used to implement and administer the ECFS system.
   2.  Moneys in the ECFS system fund are appropriated to the department for the purposes of implementing and administering the ECFS system.
   3.  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated.
   4.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the ECFS system fund shall be credited to the ECFS system fund.
    Sec. 7.  REPEAL.  Section 135.106, Code 2026, is repealed.
    Sec. 8.  EFFECTIVE DATE.  The section of this division of this Act enacting section 234A.6, being deemed of immediate importance, takes effect upon enactment.
DIVISION II
DECATEGORIZATION INITIATIVE

    Sec. 9.  Section 235.7, subsection 2, Code 2026, is amended to read as follows:
   2.  Membership.  The department may authorize the governance boards of decategorization of child welfare and juvenile justice funding projects established under section 232.188 to appoint the transition committee membership and may utilize the boundaries of decategorization projects to establish the service areas for transition committees. The committee A committee’s membership may include but is not limited to department staff involved with foster care, child welfare, and adult services, juvenile court services staff, staff involved with county general assistance or emergency relief under chapter 251 or 252, school district and area education agency staff involved with special education, and a child’s court appointed special advocate, guardian ad litem, service providers, and other persons knowledgeable about the child.
    Sec. 10.  Section 237A.1, subsection 2, paragraph j, subparagraph (2), Code 2026, is amended by striking the subparagraph.
    Sec. 11.  Section 249A.26, subsection 5, Code 2026, is amended by striking the subsection.
    Sec. 12.  Section 256I.4, subsection 6, Code 2026, is amended by striking the subsection.
    Sec. 13.  REPEAL.  Section 232.188, Code 2026, is repealed.
    Sec. 14.  DECATEGORIZATION CARRYOVER FUNDING.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Carryover funding” means unobligated or unencumbered moneys described in section 232.188, subsection 5, paragraph “b”, Code 2026, at the close of the fiscal year beginning July 1, 2025.
   b.  “Decategorization initiative” means the services and activities funded through a funding pool.
   c.  “Department” means the department of health and human services.
   d.  “Funding pool” means the same as defined in section 232.188, Code 2026.
   e.  “Governance board” means the same as defined in section 232.188, Code 2026.
   2.  Carryover funding that remains in a funding pool at the close of the fiscal year beginning Ju1y 1, 2025, which has been encumbered or obligated by the governance board for a decategorization initiative or by contract beyond that fiscal year, shall remain available for expenditure to ensure continuation of such decategorization initiative or contract until the close of the fiscal year beginning July 1, 2026, or as otherwise agreed by the department and juvenile court services after receiving input from appropriate stakeholders under subsection 4.
   3.  Carryover funding that remains in a funding pool at the end of the fiscal year beginning July 1, 2025, which remains unencumbered or unobligated by the governance board for a decategorization initiative or contract at the close of the fiscal year, shall be appropriated to the department and juvenile court services proportionately based on the percentage of moneys appropriated to each entity by the general assembly for decategorization initiatives.
   4.  a.  With input from appropriate stakeholders, the department and juvenile court services shall identify each contract funded through a funding pool impacted by this division of this Act.
   b.  On or before January 1, 2027, the department or juvenile court services shall evaluate each contract identified under paragraph “a” to determine the following:
   (1)  If permitted by the terms of a contract, whether the state should exercise the option to terminate the contract or continue the contract until the end of the current contract term.
   (2)  If the option to terminate a contract is not permitted by the terms of the contract, whether the contract should be renewed or extended at the end of the current contract term.
   (3)  Whether the department or juvenile court services should assume responsibility for a contract for the remainder of the current term of the contract, for the term of the renewed contract, or for the term of the extended contract to avoid service interruption.
   c.  Unless otherwise provided under this section, a governance board or other entity shall not enter into a contract funded through a funding pool after the effective date of this section of this division of this Act if the term of the contract extends past, or the deliverables under the contract would be provided after, June 30, 2027.
    Sec. 15.  EFFECTIVE DATE.  The section of this division of this Act related to decategorization carryover funding, being deemed of immediate importance, takes effect upon enactment.
    Sec. 16.  RETROACTIVE APPLICABILITY.  The section of this division of this Act related to decategorization carryover funding applies retroactively to July 1, 2025.
DIVISION III
CHILD ABUSE PREVENTION PROGRAM

    Sec. 17.  Section 144.13A, subsection 5, paragraph a, Code 2026, is amended to read as follows:
   a.  Ten dollars of each registration fee is appropriated and shall be used for primary and secondary child abuse prevention programs pursuant to section 235A.1, and ten dollars of each registration fee is appropriated and shall be used for the congenital and inherited disorders central registry established pursuant to section 136A.6. Notwithstanding section 8.33, moneys appropriated in this paragraph that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year, and shall not be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this paragraph.
    Sec. 18.  Section 422.12K, Code 2026, is amended to read as follows:
   422.12K  Income tax checkoff for child abuse prevention program fund.
   1.  A person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate one dollar or more to be paid to the child abuse prevention program early childhood and family services system fund created in section 235A.2 234A.6, to be used for the purpose of child abuse prevention. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the child abuse prevention program early childhood and family services system fund, the amount designated shall be reduced to the remaining amount remitted with the return. The designation of a contribution to the child abuse prevention program early childhood and family services system fund under this section is irrevocable.
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the child abuse prevention program early childhood and family services system fund on the tax return. The department of revenue, on or before January 31, shall transfer the total amount designated on the tax return forms due in the preceding calendar year to the child abuse prevention program early childhood and family services system fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department and accounts identified as owing under section 421.65 shall be satisfied.
   3.  The department of health and human services may authorize payment of moneys from the child abuse prevention program early childhood and family services system fund for the purpose of child abuse prevention in accordance with section 235A.2 234A.6.
   4.  The department of revenue shall adopt rules to administer this section.
   5.  This section is subject to repeal under section 422.12E.
    Sec. 19.  REPEAL.  Sections 235A.1, 235A.2, and 235A.3, Code 2026, are repealed.
    Sec. 20.  CHILD ABUSE PREVENTION PROGRAM FUND —— TRANSFER OF MONEYS.  Any unencumbered or unobligated moneys remaining in the child abuse prevention program fund created in section 235A.2, on June 30, 2026, shall be transferred to the early childhood and family services system fund created in section 234A.6, as enacted in this Act.
    Sec. 21.  CHILD ABUSE PREVENTION PROGRAM —— REVIEW OF CONTRACTS IMPACTED BY TRANSITION TO THE EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM.  With input from appropriate stakeholders, the department shall review the child abuse prevention program’s contract for program administration and each grant project funded through the child abuse prevention program for the fiscal year beginning July 1, 2025, and ending June 30, 2026, impacted by this division of this Act. The department shall work with the child abuse prevention program’s program administrator, local child abuse stakeholders, and grant project recipients to transition the funding and child abuse prevention administration and service delivery to the early childhood and family services system established in division I of this Act.
    Sec. 22.  EFFECTIVE DATE.  The section of this division of this Act relating to the review of contracts impacted by the transition of the child abuse prevention program to the early childhood and family services system, being deemed of immediate importance, takes effect upon enactment.
    Sec. 23.  RETROACTIVE APPLICABILITY.  The section of this division of this Act relating to the review of contracts impacted by the transition of the child abuse prevention program to the early childhood and family services system applies retroactively to July 1, 2025.
DIVISION IV
EARLY CHILDHOOD IOWA INITIATIVE —— HOME VISITING SERVICES ADMINISTRATION TRANSITION

    Sec. 24.  EARLY CHILDHOOD IOWA INITIATIVE —— HOME VISITING SERVICES ADMINISTRATION TRANSITION.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Department” means the department of health and human services.
   b.  “Early childhood Iowa area” means the same as defined in section 256I.1.
   c.  “Early childhood Iowa area board” means the same as defined in section 256I.1.
   d.  “Early childhood Iowa initiative” means the same as described in section 256I.2.
   e.  “ECFS system” means the same as defined in section 234A.1, as enacted in division I of this Act.
   f.  “Transition period” means the period beginning on the date of enactment of this division of this Act and concluding January 1, 2028.
   2.  During the transition period, the department shall develop and implement a plan to transfer administration of home visiting services currently funded by the early childhood Iowa initiative to the ECFS system by the end of the transition period. The plan to transfer the administration of home visiting services shall, at a minimum, include all of the following:
   a.  The amount of funding expended through each early childhood Iowa area and each early childhood Iowa area board for home visiting services for which administration has not yet transferred to the ECFS system shall be no less than the amount expended through each early childhood Iowa area and each early childhood Iowa area board for home visiting services during the fiscal year beginning July 1, 2025, and ending June 30, 2026.
   b.  An amount of state funding equal to the aggregate amount of state funding expended during the fiscal year beginning July 1, 2025, and ending June 30, 2026, by the early childhood Iowa initiative for home visiting services shall be available for expenditure on home visiting services for families with children age five and under.
   c.  With input from appropriate stakeholders, the department shall identify each home visiting services contract under the purview of an early childhood Iowa area or an early childhood Iowa area board. Prior to the end of the transition period, the department shall, if permitted by the terms of the contract, exercise the option to terminate each contract identified under this paragraph. If a contract does not permit early termination of the contract, the contract shall be terminated at the end of the current term of the contract. A contract identified under this paragraph shall not be renewed or extended at the end of the current contract term.
   d.  All debts, claims, or other liabilities owed to an early childhood Iowa area or an early childhood Iowa area board due to home visiting services provided or rendered pursuant to chapter 256I shall remain due and owing after administration of home visiting services is transferred to the ECFS system and after the end of the transition period. Each fiscal agent contracted with an early childhood Iowa area board shall collect outstanding debts, claims, or other liabilities owed to the early childhood Iowa area board or the early childhood Iowa area board’s early childhood Iowa area for home visiting services rendered pursuant to chapter 256I before the date the home visiting service was transferred to the ECFS system or before the end of the transition period, whichever occurred first.
   e.  An early childhood Iowa area, an early childhood Iowa area board, an early childhood Iowa area director, an agent of an early childhood Iowa area, an agent of an early childhood Iowa area board, or a subdivision of the state shall not enter into, renew, or extend a home visiting services contract related to the early childhood Iowa initiative or related activities if the term of the contract extends past, or the deliverables under the contract would be provided after, the date administration of the home visiting services is transferred to the ECFS system or the end of the transition period, whichever occurs first.
   f.  The department shall ensure that individuals currently receiving home visiting services provided through the early childhood Iowa initiative have uninterrupted continuity of care during the transition period. 
   g.  The department shall maintain ongoing communication with, and provide a means to receive input from, each early childhood Iowa area board during the process to select home visiting services providers in the early childhood Iowa area board’s respective early childhood Iowa area. The department shall also ensure that each contract the department enters into for home visiting services requires that the contracted home visiting services provider inform each early childhood Iowa area board of an early childhood Iowa area in which the home visiting services provider will provide home visiting services.
   3.  During and after the transfer of administration of home visiting services to the ECFS system, and contingent upon the department’s receipt of additional federal funds for home visiting services pursuant to the Social Security Act, Tit. IV-E, the department shall annually redistribute through the early childhood Iowa initiative the following percentages, up to seven million dollars, of the additional federal funds received for coordination of early childhood services for children from age zero through age five:
   a.  For the fiscal year beginning July 1, 2027, and ending June 30, 2028, twenty-five percent.
   b.  For the fiscal year beginning July 1, 2028, and ending June 30, 2029, fifteen percent.
   c.  For the fiscal year beginning July 1, 2029, and ending June 30, 2030, five percent.
DIVISION V
EARLY CHILDHOOD IOWA INITIATIVE —— EVALUATION —— REPORT

    Sec. 25.  EARLY CHILDHOOD IOWA INITIATIVE —— EVALUATION —— REPORT.
   1.  For purposes of this division, unless the context otherwise requires:
   a.  “Department” means the department of health and human services.
   b.  “Early childhood Iowa initiative” means the early childhood Iowa initiative described in section 256I.2.
   c.  “Early childhood Iowa state board” means the same as defined in section 256I.1.
   d.  “ECFS system” means the same as defined in section 234A.1, as enacted in division I of this Act.
   2.  a.  The department, in collaboration with the association of early childhood Iowa area boards and advocates, and the early childhood Iowa state board, shall evaluate the operational functions of the early childhood Iowa initiative and the feasibility and potential impacts of leveraging additional federal resources to inform recommendations to modernize early childhood Iowa initiative operations to support statewide prevention activities designed to strengthen families. The department shall provide administrative support for the evaluation by facilitating the collection and analysis of information and compiling a final report.
   b.  The department shall collect information through means including but not limited to work groups, focus groups, and surveys to accomplish all of the following:
   (1)  Identify opportunities to modernize the early childhood Iowa initiative’s operational functions including administration, financing, personnel, and reporting.
   (2)  Evaluate the early childhood Iowa initiative’s service access, quality, and coordination.
   (3)  Assess the fiscal and operational impacts to the early childhood Iowa initiative using a new funding allocation methodology.
   (4)  Assess the operational impacts on the department in managing additional federal funding for early childhood and family support services.
   c.  The association of early childhood Iowa area boards and advocates, and the early childhood Iowa state board, shall review the final report compiled by the department under paragraph “a” prior to the department submitting the final report to the governor and the general assembly. The department shall submit the final report to the governor and the general assembly no later than February 5, 2027. The final report shall include all of the following:
   (1)  A summary of the department’s evaluation under paragraph “a” and the findings from that evaluation.
   (2)  Recommended revisions to chapter 256I that address, at a minimum, all of the following:
   (a)  Alignment and efficiencies.
   (b)  Operational functions including administration, financing, personnel, and reporting.
   (c)  The relationship between the early childhood Iowa initiative and the ECFS system.
   (3)  A transition plan for implementing the revisions recommended under subparagraph (2) that maintains continuity of service delivery.
DIVISION VI
HEALTH AND HUMAN SERVICES DISTRICTS

    Sec. 26.  Section 217.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  “Health and human services district” or “HHS district” means a geographic, multicounty area designated by the department under section 217.1B for statewide program and service delivery.
    Sec. 27.  NEW SECTION.  217.1B  Health and human services districts.
   1.  The department shall divide the entirety of the state into designated health and human services districts. The initial HHS districts shall be the same as the behavioral health districts designated pursuant to section 225A.4, Code 2026, and that exist on the effective date of this division of this Act. Beginning the calendar year that begins January 1, 2032, and every ten consecutive calendar years thereafter, the department shall review the efficacy of the designated HHS districts in performing the HHS districts’ functions during the immediately preceding ten consecutive calendar years.
   2.  a.  The department may modify a designated HHS district. When modifying a designated HHS district, the department shall consider all of the following:
   (1)  City and county boundaries.
   (2)  The population size that can be effectively served in a specific area.
   (3)  Areas of high need for services.
   (4)  Patterns various populations exhibit when accessing or receiving services.
   b.  Notwithstanding chapter 17A, the manner in which the modification of an HHS district is made, including the determination of boundaries for a modified HHS district, shall not be subject to judicial review.
   3.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 28.  CONTINGENT EFFECTIVE DATE.  This division of this Act takes effect July 1, 2026, unless the sections of 2026 Iowa Acts, LSB 5558 XD, or successor legislation, amending section 217.1 and enacting section 217.1B are enacted on or before July 1, 2026.
DIVISION VII
CONFORMING CHANGES

    Sec. 29.  Section 232.69, subsection 1, paragraph b, subparagraph (5), Code 2026, is amended to read as follows:
   (5)  An employee or operator of a licensed child care center, registered child development home, head start program, family development and self-sufficiency grant program under section 216A.107, or healthy opportunities for parents to experience success – healthy families Iowa program under section 135.106 234A.5.
    Sec. 30.  Section 237A.30, subsection 1, Code 2026, is amended to read as follows:
   1.  The department shall work with the early childhood Iowa program established in section 256I.5 in designing and implementing implement a voluntary quality rating system for each provider type of child care facility.
    Sec. 31.  Section 256I.13, subsection 1, Code 2026, is amended to read as follows:
   1.  In order to implement the legislative intent stated in sections 135.106 and section 256I.9, that priority for family support program funding be given to programs using evidence-based or promising models for family support, it is the intent of the general assembly that ninety percent of state funds expended for family support programs shall be used for evidence-based or promising program models. The remaining ten percent of funds may be used for innovative program models that do not yet meet the definition of evidence-based or promising programs.
DIVISION VIII
CODE EDITOR DIRECTIVES

    Sec. 32.  CODE EDITOR DIRECTIVES.  The Code editor is directed to do all of the following:
   1.  Make changes in any Code sections amended or enacted by any other Act to correspond with the changes made in this Act if there appears to be no doubt as to the proper method of making the changes and the changes would not be contrary to or inconsistent with the purposes of this Act or any other Act.
   2.  Correct internal references in the Code and in enacted legislation as necessary due to the enactment of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to early childhood and family services, including creation of an early childhood and family services (ECFS) system.
   DIVISION I —— EARLY CHILDHOOD AND FAMILY SERVICES SYSTEM.  The bill creates new Code chapter 234A (early childhood and family services system). The purpose of the ECFS system is to provide accessible, ongoing, and community-based services for children and families. The bill defines terms used in the chapter.
   The ECFS system is established under the control of the department of health and human services (HHS) and ECFS districts (districts) are established for statewide implementation of primary prevention strategies and early intervention strategies for families and their children under 19 years of age. The ECFS system must be administered in a manner that maximizes funding opportunities, interagency collaboration, and integration of activities and services that support positive outcomes for children and families. 
   The bill details actions HHS must perform, to the extent funding is available, to develop and administer the ECFS system.
   The bill directs HHS to establish an ECFS district advisory council (council) in each district, and develop policies and procedures for the operational functions of the councils. A council shall consist of 10 members appointed by HHS. The bill specifies individuals who are eligible for appointment, and the duties of a council.
   The bill specifies the duties of HHS related to data collection and use for the ECFS system. The bill requires HHS to maintain compliance with applicable federal and state privacy laws to ensure the confidentiality and integrity of individually identifiable data related to the ECFS system collected by HHS.
   Current Code section 135.106 (healthy opportunities for parents to experience success – healthy families Iowa (HOPES-HFI)) is placed in the new Code chapter and becomes part of the ECFS system. The bill specifies the requirements for the HOPES-HFI program and directs HHS to develop and administer the HOPES-HFI program, in whole or in part, by contracting with local organizations that use evidence-based home visiting models.
   The bill establishes an ECFS system fund (ECFS fund) consisting of moneys appropriated to HHS for the ECFS fund’s purposes by the general assembly and any other moneys available and obtained or accepted by HHS for deposit in the ECFS fund. Moneys in the ECFS fund are appropriated to HHS for the purposes of implementing and administering the ECFS system. Moneys appropriated that remain unencumbered or unobligated at the close of a fiscal year shall not revert to the general fund of the state, and interest or earnings on moneys in the fund shall be credited to the ECFS fund.
   The section of the division that establishes the ECFS fund takes effect upon enactment.
   DIVISION II —— DECATEGORIZATION INITIATIVE. The bill eliminates the decategorization initiative. The bill details how moneys available for a decategorization initiative will be made available or appropriated to HHS and juvenile court services. The bill prohibits a governance board, as defined in the bill, or other entity from entering into certain contracts if the contract extends past, or the deliverables under the contract would be provided after, June 30, 2027. The section of this division of the bill relating to decategorization carryover funding, as defined in the bill, is effective upon enactment and applies retroactively to July 1, 2025.
   DIVISION III —— CHILD ABUSE PREVENTION PROGRAM. The bill eliminates the child abuse prevention program (CAPP), fund, and advisory committee. A taxpayer may still receive a nonrefundable reduction in the taxpayer’s income taxes for contributing one or more dollars to child abuse prevention, but the moneys received will be administered through the ECFS system instead of the CAPP fund. Funding for child abuse prevention and moneys currently in the CAPP fund are directed to the ECFS fund to be used by HHS for child abuse prevention.
   The bill requires HHS to review CAPP’s contract for program administration and each grant project funded through CAPP for FY 2025-2026 that is impacted by the bill. HHS must work with CAPP’s program administrator, local child abuse stakeholders, and grant project recipients to transition CAPP funding and CAPP service delivery to the ECFS system. The provisions of the bill relating to review of CAPP contracts and CAPP funding take effect upon enactment and applies retroactively to July 1, 2025.
   DIVISION IV —— EARLY CHILDHOOD IOWA INITIATIVE —— HOME VISITING SERVICES ADMINISTRATION TRANSITION. The bill requires HHS, during the period beginning on the effective date of this division of the bill and concluding January 1, 2028 (transition period), to develop and implement a plan to transfer administration of home visiting services (HVS) currently funded by the early childhood Iowa (ECI) initiative to the ECFS system by the end of the transition period. HHS’s plan must address funding expended by ECI areas and ECI area boards during the transition period; funding for HVS during the transition period; HVS contracts, debts, claims, and other liabilities owed to an ECI area or ECI area board; continuity of care for families receiving HVS; and communication and input between HHS and ECI area boards as detailed in the bill.
   The bill requires HHS, contingent on HHS’s receipt of federal funds, to annually redistribute such moneys through the ECI initiative in amounts as detailed in the bill for FY 2027-2028, FY 2028-2029, and FY 2029-2030.
   DIVISION V —— EARLY CHILDHOOD IOWA INITIATIVE —— EVALUATION —— REPORT. The bill requires HHS, in collaboration with the association of ECI area boards and advocates and the ECI state board, to evaluate operational functions of the ECI initiative and the feasibility and potential impacts of leveraging additional federal resources to inform recommendations to modernize ECI initiative operations to support statewide prevention activities designed to strengthen families. HHS shall gather information to accomplish goals detailed in the bill. No later than February 5, 2027, HHS shall submit a final report to the governor and the general assembly with information detailed in the bill. Prior to HHS submitting the final report, HHS shall allow the ECI area boards and advocates and the ECI state board to review the final report.
   DIVISION VI —— HEALTH AND HUMAN SERVICES DISTRICTS. The bill directs HHS to divide the state into health and human services districts (districts), as that term is defined in the bill, to be used by HHS for statewide delivery of programs and services. The initial district boundaries shall be the same as the behavioral health district boundaries, as the behavioral health district boundaries existed on July 1, 2025. HHS must review the designation of the districts at least once every seven consecutive fiscal years. The bill provides factors HHS must consider when modifying a district, and modification is not subject to judicial review.
   This division of the bill is effective July 1, 2026, unless the sections of 2026 Iowa Acts, LSB 5558 XD, amending Code section 217.1 and enacting Code section 217.1B are enacted on or before July 1, 2026.
   DIVISION VII —— CONFORMING CHANGES. The bill includes conforming changes.
   DIVISION VIII —— CODE EDITOR DIRECTIVES. The bill provides Code editor directives.