House File 2612 - Reprinted HOUSE FILE 2612 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 713) (As Amended and Passed by the House February 29, 2024 ) A BILL FOR An Act relating to area education agencies, including by 1 modifying provisions related to the duties and powers of 2 area education agencies, the membership of area education 3 agency boards of directors, oversight by the department of 4 education, funding, and establishing a task force related to 5 area education agency operations, and including effective 6 date and applicability provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 HF 2612 (2) 90 jda/jh/md

H.F. 2612 DIVISION I 1 DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION 2 Section 1. Section 256B.3, Code 2024, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 15A. Oversee the operation of each area 5 education agency to ensure the area education agency complies 6 with all applicable federal and state laws related to special 7 education. 8 Sec. 2. DIVISION OF SPECIAL EDUCATION —— EMPLOYEES. From 9 July 1, 2024, to June 30, 2025, the division of special 10 education of the department of education shall do all of the 11 following: 12 1. Devote at least thirteen full-time equivalent positions 13 within the department of education’s location in the city 14 of Des Moines to oversight of the area education agencies, 15 including the accreditation of area education agencies under 16 section 273.10. 17 a. At least one of the full-time equivalent positions shall 18 be an administrator. 19 b. At least one of the full-time equivalent positions shall 20 be a bureau chief of special education. 21 c. At least one of the full-time equivalent positions shall 22 be a liaison for accredited nonpublic schools. 23 d. At least one of the full-time equivalent positions shall 24 be an employee whose primary job duties relate to the child 25 find process for special education. 26 e. At least one of the full-time equivalent positions 27 shall be an employee whose primary job duties relate to best 28 practices concerning the development and implementation of 29 individualized education programs. 30 f. At least five of the full-time equivalent positions shall 31 be devoted to the accreditation of area education agencies. 32 2. Within the main office of each area education agency, 33 devote an amount of full-time equivalent positions, as 34 determined by the division of special education of the 35 -1- HF 2612 (2) 90 jda/jh/md 1/ 25

H.F. 2612 department of education but not to exceed forty full-time 1 equivalent positions in the aggregate, that is commensurate 2 with the number of students enrolled in school districts 3 located within the area education agency to ensure the area 4 education agency complies with all applicable federal and state 5 laws related to special education and to review the services 6 provided by the area education agency. 7 DIVISION II 8 AREA EDUCATION AGENCIES —— GENERAL PROVISIONS 9 Sec. 3. Section 256.9, Code 2024, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 36. Develop and distribute to school 12 districts, accredited nonpublic schools, and area education 13 agencies a list of evidence-based professional development 14 services that an area education agency may provide to a school 15 district or accredited nonpublic school pursuant to section 16 273.2, subsection 3, paragraph “b” . 17 Sec. 4. Section 273.2, subsections 1, 3, and 4, Code 2024, 18 are amended to read as follows: 19 1. There are established throughout the state fifteen 20 area education agencies, each of which is governed by an 21 area education agency board of directors under the general 22 supervision of the director, except as otherwise provided 23 in this chapter . Each area education agency shall have an 24 area education agency board of directors that shall serve in 25 an advisory capacity. The boundaries of an area education 26 agency shall not divide a school district. The director of 27 the department of education shall change boundaries of area 28 education agencies to take into account mergers of local school 29 districts and changes in boundaries of local school districts, 30 when necessary to maintain the policy of this chapter that a 31 local school district shall not be a part of more than one area 32 education agency. 33 3. a. The area education agency board shall furnish 34 educational services and programs as provided in section 273.1 , 35 -2- HF 2612 (2) 90 jda/jh/md 2/ 25

H.F. 2612 this section , sections 273.3 through 273.8 , and chapter 256B 1 to the pupils enrolled in public or nonpublic schools located 2 within its boundaries which are on the list of accredited 3 schools pursuant to section 256.11 , which request to receive 4 such services . The programs and services provided shall be 5 at least commensurate with programs and services existing on 6 July 1, 1974. The programs and services provided to pupils 7 enrolled in nonpublic schools shall be comparable to programs 8 and services provided to pupils enrolled in public schools 9 within constitutional guidelines. 10 b. The area education agency may furnish evidence-based 11 professional development services to public or nonpublic 12 schools which are on the list of accredited schools pursuant 13 to section 256.11 if any of the following requirements are 14 satisfied: 15 (1) The professional development service is included on the 16 list developed by the director of the department of education 17 pursuant to section 256.9, subsection 36. 18 (2) The director of the department of education grants 19 approval to the area education agency to furnish the 20 evidence-based professional development services. 21 4. The area education agency board shall provide for special 22 education services and media services for the local school 23 districts in the area and shall encourage and assist school 24 districts in the area to establish programs for gifted and 25 talented children. The board shall assist in facilitating 26 interlibrary loans of materials between school districts and 27 other libraries. 28 Sec. 5. Section 273.2, Code 2024, is amended by adding the 29 following new subsections: 30 NEW SUBSECTION . 4A. a. The area education agency board may 31 furnish services under subsection 3 or 4 to public or nonpublic 32 schools located within its boundaries, or within the boundaries 33 of a contiguous area education agency, which are on the list of 34 accredited schools pursuant to section 256.11. 35 -3- HF 2612 (2) 90 jda/jh/md 3/ 25

H.F. 2612 b. Notwithstanding paragraph “a” , the area education agency 1 board may furnish services under subsection 3 or 4 to a public 2 school located within the boundaries of an area education 3 agency that is not contiguous if the school district shares 4 a superintendent with another school district, pursuant to 5 section 257.11, subsection 5, that receives services from the 6 area education agency board pursuant to paragraph “a” . 7 NEW SUBSECTION . 4B. A school district shall not receive 8 services under subsection 3 or 4 from different area education 9 agency boards. 10 Sec. 6. Section 273.3, subsections 1, 11, and 12, Code 2024, 11 are amended to read as follows: 12 1. Determine the policies of Advise and consult with the 13 area education agency on policies and procedures for providing 14 programs and services. 15 11. Employ personnel to carry out the functions of the 16 area education agency which shall include the employment of 17 an administrator who shall possess a license issued under 18 chapter 256, subchapter VII, part 3 by the board of educational 19 examiners and, beginning July 1, 2025, a prekindergarten 20 through grade twelve superintendent and area education agency 21 administrator authorization issued by the board of educational 22 examiners and either a prekindergarten through grade twelve 23 principal and special education supervisor authorization issued 24 by the board of educational examiners or a director of special 25 education authorization issued by the board of educational 26 examiners . The administrator shall be employed pursuant to 27 section 279.20 and sections 279.23 , 279.24 , and 279.25 . The 28 salary for an area education agency administrator shall be 29 established by the board based upon the previous experience 30 and education of the administrator ; provided, however, that 31 the salary for an area education agency administrator shall 32 not exceed one hundred twenty-five percent of the average 33 salary of all superintendents of the school districts that 34 are located within the boundaries of the area education 35 -4- HF 2612 (2) 90 jda/jh/md 4/ 25

H.F. 2612 agency at the time the employment agreement is entered into or 1 renewed between an area education agency and an area education 2 agency administrator, not including superintendents who are 3 responsible for supplementary weighting being made available 4 to a school district pursuant to section 257.11, subsection 5 . 5 The salary for an area education agency administrator shall not 6 be reduced during the initial term of the employment agreement 7 between the area education agency and the area education agency 8 administrator. Section 279.13 applies to the area education 9 agency board and to all teachers employed by the area education 10 agency. Sections 279.23 , 279.24 , and 279.25 apply to the area 11 education board and to all administrators employed by the area 12 education agency. Section 279.69 applies to the area education 13 agency board and employees of the board, including part-time, 14 substitute, or contract employees, who provide services to a 15 school or school district. 16 12. Prepare an annual budget estimating income and 17 expenditures for programs and services as provided in sections 18 273.1 , 273.2 , this section , sections 273.4 through 273.8 , 19 and chapter 256B within the limits of funds provided under 20 section 256B.9 and chapter 257 . The board shall post notice 21 of a public hearing on submit the proposed budget on the area 22 education agency’s internet site and by publication in the 23 newspaper of general circulation in the territory of the area 24 education agency in which the principal place of business of 25 a school district that is a part of the area education agency 26 is located to the director of the department of education 27 for approval not later than March 1 of each year, and the 28 director shall either approve or reject the proposed budget for 29 changes within ten days after submission . The notice shall 30 specify the date, which shall be not later than March 1 of 31 each year, the time, and the location of the public hearing. 32 The proposed budget as approved by the board director of the 33 department of education shall then be submitted to the state 34 board of education, on forms provided by the department, 35 -5- HF 2612 (2) 90 jda/jh/md 5/ 25

H.F. 2612 no later than March 15 preceding the next fiscal year for 1 approval. The state board shall review the proposed budget of 2 each area education agency and shall before May 1, either grant 3 approval or return the budget without approval with comments 4 of the state board included. An unapproved budget shall be 5 resubmitted to the state board for final approval not later 6 than May 15. The state board shall give final approval only to 7 budgets submitted by area education agencies accredited by the 8 state board or that have been given conditional accreditation 9 by the state board. 10 Sec. 7. Section 273.3, Code 2024, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 26. On a quarterly basis, prepare and 13 submit to each school district that receives services from 14 the area education agency a report that includes all of the 15 following: 16 a. A monetary accounting of payments the area education 17 agency received from the school district, including payments 18 under section 257.35. 19 b. A description of all of the following: 20 (1) The special education services provided by the area 21 education agency to the school district. 22 (2) The services provided by the area education agency under 23 part C of the federal Individuals with Disabilities Education 24 Act. 25 (3) The services provided by the area education agency that 26 are related to the child find process for special education. 27 (4) The general supervision services provided by the area 28 education agency. 29 (5) The services provided by the area education agency to 30 accredited nonpublic schools and charter schools. 31 Sec. 8. Section 273.8, subsection 1, Code 2024, is amended 32 to read as follows: 33 1. Board of directors. The board of directors of an area 34 education agency shall consist of not less than five nor more 35 -6- HF 2612 (2) 90 jda/jh/md 6/ 25

H.F. 2612 than nine members , each a resident of and elected in the 1 manner provided in this section from a director district that 2 is approximately equal in population to the other director 3 districts in the area education agency . Each director shall 4 serve a four-year term which commences at the organization 5 meeting. 6 a. A majority of the members of the board of directors of 7 an area education agency must be superintendents of school 8 districts located within the boundaries of the area education 9 agency who are elected in the manner provided in this section. 10 b. The remainder of the members of the board of directors of 11 an area education agency must be residents of and elected in 12 the manner provided in this section from a director district 13 that is approximately equal in population to the other director 14 districts in the area education agency. 15 Sec. 9. Section 273.8, subsection 2, paragraphs c and d, 16 Code 2024, are amended to read as follows: 17 c. The board of each separate school district that is 18 located entirely or partially inside an area education agency 19 director district shall cast a vote for director of the area 20 education agency board based upon the ratio that the population 21 of the school district, or portion of the school district, in 22 the director district bears to the total population in the 23 director district. The population of each school district or 24 portion shall be determined by the department of education. 25 The member of the area education agency board to be elected 26 may be a superintendent of a local school district or a member 27 of a local school district board of directors and shall be an 28 elector and a resident of the director district , but shall not 29 be a school district employee . 30 d. Vacancies, as defined in section 277.29 , in the 31 membership of the area education agency board shall be filled 32 for the unexpired portion of the term at a director district 33 convention called and conducted in the manner provided in 34 subsection 3 . A vacancy created in a membership position 35 -7- HF 2612 (2) 90 jda/jh/md 7/ 25

H.F. 2612 described in section 273.8, subsection 1, paragraph “a” , 1 shall be filled for the unexpired portion of the term by 2 a superintendent of a school district located within the 3 boundaries of the area education agency at a director district 4 convention called and conducted in the manner provided in 5 subsection 3. 6 Sec. 10. Section 273.8, subsection 3, Code 2024, is amended 7 to read as follows: 8 3. Director district convention. If no candidate files 9 with the area education agency secretary by the deadline 10 specified in subsection 2 , or a vacancy occurs, or if otherwise 11 required as provided in section 273.23, subsection 3 , a 12 director district convention, attended by members of the 13 boards of directors of the local school districts located 14 within the director district, shall be called to elect a 15 board member for that director district , consistent with 16 the membership requirements described in subsection 1 . The 17 convention location shall be determined by the area education 18 agency administrator. Notice of the time, date, and place 19 of a director district convention shall be published by the 20 area education agency administrator in at least one newspaper 21 of general circulation in the director district at least 22 thirty days prior to the day of the convention. The cost of 23 publication shall be paid by the area education agency. A 24 candidate for election to the area education agency board shall 25 file a statement of candidacy with the area education agency 26 secretary at least ten days prior to the date of the director 27 district convention on forms prescribed by the department of 28 education, or nominations may be made at the convention by a 29 delegate from a board of directors of a school district located 30 within the director district. A statement of candidacy shall 31 include the candidate’s name, address, and school district. 32 Delegates to director district conventions shall not be bound 33 by a school board or any school board member to pledge their 34 votes to any candidate prior to the date of the convention. 35 -8- HF 2612 (2) 90 jda/jh/md 8/ 25

H.F. 2612 Sec. 11. Section 273.10, subsection 6, Code 2024, is amended 1 to read as follows: 2 6. a. If the deficiencies in an area education program have 3 not been corrected, the agency board director of the department 4 of education shall take one of the following actions within 5 sixty days from removal of accreditation: 6 (1) Merge the deficient program with a program from another 7 accredited area education agency. 8 (2) Contract with another area education agency or other 9 public educational institution for purposes of program 10 delivery. 11 b. The rules developed by the state board of education for 12 the accreditation process shall include provisions for removal 13 of accreditation, including provisions for proper notice to the 14 administrator of the area education agency, each member of the 15 board of directors of the area education agency, the department 16 of education, and the superintendents and administrators of the 17 schools of the districts served by the area education agency. 18 Sec. 12. Section 273.11, Code 2024, is amended to read as 19 follows: 20 273.11 Standards for accrediting area education programs. 21 1. The state board of education , in consultation with the 22 department of education, shall develop standards and rules 23 for the accreditation of area education agencies. Standards 24 shall be general in nature, but at a minimum shall identify 25 requirements addressing the services provided by each division, 26 as well as identifying indicators of quality that will permit 27 area education agencies, school districts, the division of 28 special education of the department of education, and the 29 general public to judge accurately the effectiveness of area 30 education agency services. 31 2. Standards developed shall include, but are not limited 32 to, the following: 33 a. Support for school-community planning, including a means 34 of assessing needs, developing collaborative relationships 35 -9- HF 2612 (2) 90 jda/jh/md 9/ 25

H.F. 2612 among community agencies, establishing shared direction , and 1 implementing program plans and reporting progress toward goals 2 for all students, including students with disabilities . 3 b. Professional Evidence-based professional development 4 programs that respond to current needs. 5 c. Support for curriculum development, instruction, and 6 assessment for services that address the areas of reading, 7 language arts, math , and science, using research-based 8 methodologies , for all students, including students with 9 disabilities . 10 d. Special education compliance and support. 11 e. Management services, including financial reporting and 12 purchasing as requested and funded by local districts. 13 f. Support for instructional media services that supplement 14 and support local district media centers and services. 15 g. Support for school technology planning and staff 16 development for implementing instructional technologies. 17 h. A program and services evaluation and reporting system 18 related to special education . 19 i. Support for school district libraries in accordance with 20 section 273.2, subsection 4 . 21 j. Support for early childhood service coordination for 22 families and children , age birth through three years, to 23 meet health, safety, and learning needs , including service 24 coordination . 25 k. Support for schools and school districts in analyzing 26 student achievement data related to the learning environment, 27 comparing data to the external knowledge base, and using that 28 information to guide schools and school districts in setting 29 goals and implementing actions to improve student learning for 30 all students, including students with disabilities. 31 l. Support for addressing the diverse learning needs of 32 all children and youths with disabilities who are eligible for 33 special education, including through services that include 34 direct services to students with disabilities. 35 -10- HF 2612 (2) 90 jda/jh/md 10/ 25

H.F. 2612 m. Support for schools and school districts to ensure 1 compliance with rules adopted by the state board of education 2 related to special education. 3 n. Support necessary to implement effective instruction for 4 all students, including students with disabilities, through 5 school technology services. 6 o. Support for students using educational programs and 7 services in a manner that is consistent with the educational 8 standards established pursuant to section 256.11. 9 p. Support for staff development and adult learners 10 utilizing evidence-based professional development in a manner 11 that meets the professional needs of staff and adult learners 12 consistent with standards adopted by the state board of 13 education. 14 q. Compliance with all relevant federal and state laws in 15 the provision of services and supports to students, including 16 students with disabilities. 17 Sec. 13. AREA EDUCATION AGENCY —— TASK FORCE. 18 1. The legislative council shall convene an area education 19 agency task force that shall do all of the following: 20 a. Study and make recommendations related to how to improve 21 the outcomes of students who utilize services provided by area 22 education agencies. 23 b. Study and make recommendations related to the amount of 24 compensation paid to administrators employed by area education 25 agencies, core services provided by area education agencies, 26 and how to best fund the following services provided by area 27 education agencies: 28 (1) Crisis response services. 29 (2) Media services for nonpublic schools. 30 (3) Professional development services. 31 (4) Cooperative purchasing. 32 (5) Services associated with regional planning 33 partnerships. 34 (6) Services associated with the federal Carl D. Perkins 35 -11- HF 2612 (2) 90 jda/jh/md 11/ 25

H.F. 2612 Career and Technical Education Improvement Act of 2006, 1 codified at 20 U.S.C. §2301 et seq., as amended. 2 (7) Services associated with the federal Every Student 3 Succeeds Act, Pub. L. No. 114-95. 4 (8) Services provided in conjunction with special education 5 equipment. 6 c. Study and make recommendations related to all of the 7 following: 8 (1) The real property and facilities utilized by each area 9 education agency. 10 (2) The media services, educational services, and special 11 education services provided by each area education agency. 12 (3) What services area education agencies should provide. 13 (4) Current accountability measures applicable to area 14 education agencies. 15 (5) The special education services provided by the division 16 of special education of the department of education, area 17 education agencies, and school districts. 18 (6) The overall organizational structure that determines 19 how special education services are provided to students in this 20 state. 21 (7) How the operation of area education agencies is 22 overseen. 23 (8) The accreditation standards related to area education 24 agencies. 25 (9) A timeline for modifications to the staffing numbers of 26 area education agencies and the transition of responsibilities 27 related to the oversight of area education agencies. 28 2. a. The task force shall consist of the following 29 voting members who are appointed by the legislative council to 30 represent different geographical regions of this state: 31 (1) One special education teacher who is employed by a 32 school district with a total enrollment of greater than or 33 equal to one thousand students. 34 (2) One special education teacher who is employed by a 35 -12- HF 2612 (2) 90 jda/jh/md 12/ 25

H.F. 2612 school district with a total enrollment of less than one 1 thousand students. 2 (3) One superintendent who is employed by a school district 3 with a total enrollment of greater than or equal to one 4 thousand students. 5 (4) One superintendent who is employed by a school district 6 with a total enrollment of less than one thousand students. 7 (5) One teacher who is employed by a school district and who 8 does not provide special education programs or services. 9 (6) One parent or guardian of a student who has an 10 individualized education program. 11 (7) One parent or guardian of a student who has a plan under 12 section 504 of the Rehabilitation Act, 29 U.S.C. §794. 13 (8) One president or chief executive officer of an 14 accredited nonpublic school. 15 b. The task force shall also consist of the following voting 16 members: 17 (1) One member to be appointed by the governor. 18 (2) One member to be appointed by the director of the 19 department of education. 20 (3) One member who is the chief administrator of the 21 heartland area education agency. 22 c. The task force shall also consist of the following ex 23 officio, nonvoting members of the general assembly: 24 (1) Two state senators appointed by the majority leader of 25 the senate. 26 (2) One state senator appointed by the minority leader of 27 the senate. 28 (3) Two state representatives appointed by the speaker of 29 the house of representatives. 30 (4) One state representative appointed by the minority 31 leader of the house of representatives. 32 3. Any expenses incurred by a member of the task force 33 shall be the responsibility of the individual member or the 34 respective entity represented by the member. 35 -13- HF 2612 (2) 90 jda/jh/md 13/ 25

H.F. 2612 4. The task force shall submit its findings and 1 recommendations in a report to the general assembly on 2 or before December 31, 2024. The report shall include an 3 examination and evaluation of the impact to area education 4 agencies and their operations and services made by this Act. 5 Sec. 14. AREA EDUCATION AGENCY BOARDS OF DIRECTORS —— 6 TRANSITION. 7 1. a. If, as of July 1, 2024, the membership of an area 8 education agency board of directors does not comply with the 9 provisions of section 273.8, subsection 1, as amended in this 10 division of this Act, the members of the boards of directors of 11 the local school districts located within the area education 12 agency director districts shall select the applicable number 13 of the members of the area education agency board of directors 14 whose terms shall, as of July 1, 2024, be deemed to have 15 expired, notwithstanding the terms of office associated with 16 the members under section 273.8, subsection 1, as amended in 17 this division of this Act. 18 b. If the members of the boards of directors of the local 19 school districts located within the area education agency 20 director districts are unable to select the applicable number 21 of the members of the area education agency board of directors 22 whose terms shall be deemed to have expired, as required in 23 paragraph “a”, the director of the department of education 24 shall select the applicable number of such members. 25 2. The membership of the board members that were selected 26 under subsection 1 shall be deemed vacant when such selection 27 is made. A director district convention shall be called under 28 section 273.8, subsection 3, to fill such vacancies. 29 3. From the time the membership of the board members is 30 deemed vacant pursuant to subsection 2 until the time the 31 vacancies are filled through the director district convention, 32 the area education agency board shall be authorized to exercise 33 all power granted to it under chapter 273, notwithstanding the 34 lack of a quorum under section 273.8, subsection 5. 35 -14- HF 2612 (2) 90 jda/jh/md 14/ 25

H.F. 2612 Sec. 15. EFFECTIVE DATE. The following take effect July 1, 1 2025: 2 1. The portion of the section of this division of this Act 3 amending section 273.2, subsection 1. 4 2. The portion of the section of this division of this Act 5 amending section 273.3, subsection 1. 6 Sec. 16. APPLICABILITY. The following applies to 7 employment agreements entered into or renewed between an area 8 education agency and an area education agency administrator on 9 or after July 1, 2024: 10 The portion of the section of this division of this Act 11 amending section 273.3, subsection 11. 12 Sec. 17. APPLICABILITY. The following apply to members of 13 the boards of directors of area education agencies elected on 14 or after July 1, 2024: 15 1. The section of this division of this Act amending section 16 273.8, subsection 1. 17 2. The section of this division of this Act amending section 18 273.8, subsection 2, paragraph “c”. 19 DIVISION III 20 AREA EDUCATION AGENCIES —— FUNDING 21 Sec. 18. Section 257.1, subsection 3, Code 2024, is amended 22 to read as follows: 23 3. Computations rounded. In making computations and 24 payments under this chapter , except in the case of computations 25 relating to funding of special education support services, 26 media services, and educational services provided through the 27 area education agencies under section 257.37 , and the teacher 28 salary supplement, the professional development supplement, 29 the early intervention supplement, and the teacher leadership 30 supplement, the department of management shall round amounts to 31 the nearest whole dollar. 32 Sec. 19. Section 257.10, subsection 7, Code 2024, is amended 33 to read as follows: 34 7. Special education support services district cost. Special 35 -15- HF 2612 (2) 90 jda/jh/md 15/ 25

H.F. 2612 education support services district cost for a school district 1 for a budget year is equal to the special education support 2 services district cost per pupil for the budget year multiplied 3 by the special education support services weighted enrollment 4 for the district for the budget year. If the special education 5 support services district cost for a school district for 6 a budget year is less than the special education support 7 services district cost for that district for the base year, the 8 department of management shall adjust the special education 9 support services district cost for that district for the 10 budget year to equal the special education support services 11 district cost for the base year. Funds calculated under this 12 subsection and received by a school district shall be used by 13 the school district for special education support services 14 contracted from an area education agency. The contract between 15 the school district and the area education agency shall not 16 require the school district to describe the specific special 17 education services the school district will receive from the 18 area education agency. The special education services provided 19 by the area education agency to the school district pursuant to 20 the contract shall not be limited by the amount of funding the 21 school district provided to the area education agency. 22 Sec. 20. Section 257.10, subsection 8, paragraph a, Code 23 2024, is amended to read as follows: 24 a. Combined district cost is the sum of the regular program 25 district cost per pupil multiplied by the weighted enrollment, 26 the special education support services district cost, the 27 total teacher salary supplement district cost, the total 28 professional development supplement district cost, the total 29 early intervention supplement district cost, and the total 30 teacher leadership supplement district cost, plus the sum of 31 the additional district cost allocated to the district to fund 32 media services and educational services provided through the 33 area education agency under section 257.37 , the area education 34 agency total teacher salary supplement district cost and the 35 -16- HF 2612 (2) 90 jda/jh/md 16/ 25

H.F. 2612 area education agency total professional development supplement 1 district cost. 2 Sec. 21. Section 257.35, subsection 1, Code 2024, is amended 3 to read as follows: 4 1. a. (1) The For fiscal years beginning before July 1, 5 2025, the department of management shall deduct the amounts 6 calculated for special education support services, media 7 services, area education agency teacher salary supplement 8 district cost, area education agency professional development 9 supplement district cost, and educational services for each 10 school district from the state aid due to the district pursuant 11 to this chapter and shall pay the amounts to the respective 12 area education agencies on a monthly basis from September 15 13 through June 15 during each school year. 14 (2) (a) For the fiscal year beginning July 1, 2025, and 15 each fiscal year thereafter, the department of management shall 16 deduct the area education agency teacher salary supplement 17 district cost from the state aid due to each school district 18 pursuant to this chapter and shall pay the amounts to the 19 respective area education agencies on a monthly basis from 20 September 15 through June 15 during each school year. 21 (b) For the fiscal year beginning July 1, 2025, and each 22 fiscal year thereafter, the department of management shall 23 deduct the area education agency professional development 24 supplement district cost from the state aid due to each school 25 district pursuant to this chapter and shall pay the amounts 26 to the department of education to be used for evidence-based 27 professional development purposes. 28 b. The department of management shall notify each school 29 district of the amount of state aid deducted for these purposes 30 and the balance of state aid shall be paid to the district. If 31 a district does not qualify for state aid under this chapter 32 in an amount sufficient to cover its amount due to the area 33 education agency or the department of education as calculated 34 by the department of management, the school district shall pay 35 -17- HF 2612 (2) 90 jda/jh/md 17/ 25

H.F. 2612 the deficiency to the area education agency or department of 1 education, as applicable, from other moneys received by the 2 district, on a quarterly basis during each school year. 3 Sec. 22. Section 257.36, subsection 1, Code 2024, is amended 4 to read as follows: 5 1. Notwithstanding chapters 256B and 273 and sections 6 of this chapter relating to the moneys available to school 7 districts and area education agencies for special education 8 support services, for each school year, the department of 9 education may direct the department of management to deduct 10 amounts from the portions of school district budgets that 11 fund special education support services in an area education 12 agency. The total amount deducted in an area for a school 13 district shall be based upon excess special education support 14 services unreserved and undesignated fund balances in that 15 school district or paid by the school district to an area 16 education agency for a school year that remain unreserved and 17 undesignated as determined by the department of education. The 18 department of management shall determine the amount deducted 19 from each school district in an area education agency on 20 a proportional basis. The department of management shall 21 determine from the amounts deducted from the portions of school 22 district budgets that fund area education agency special 23 education support services the amount that would have been 24 local property taxes and the amount that would have been state 25 aid and for the next following budget year shall increase the 26 district’s total state school aid available under this chapter 27 for area education agency special education support services 28 and reduce the district’s property tax levy for area education 29 agency special education support services by the amount 30 necessary for the property tax portion of the deductions made 31 under this section during the budget year. 32 Sec. 23. Section 257.37, Code 2024, is amended to read as 33 follows: 34 257.37 Funding media and educational services. 35 -18- HF 2612 (2) 90 jda/jh/md 18/ 25

H.F. 2612 Media services and educational services provided by a school 1 district or through the area education agencies agency shall be 2 funded, to the extent provided, by an addition to the combined 3 district cost of each school district, determined as follows: 4 1. For the budget year beginning July 1, 1991, and 5 succeeding budget years, the total amount funded in each area 6 for media services shall be computed as provided in this 7 subsection . For the budget year beginning July 1, 1991, the 8 total amount funded in each area for media services in the base 9 year shall be divided by the enrollment served in the base year 10 to provide an area media services cost per pupil in the base 11 year, and the department of management shall compute the state 12 media services cost per pupil in the base year which is equal 13 to the average of the area media services costs per pupil in 14 the base year. For the budget year beginning July 1, 1991, and 15 succeeding budget years, the department of management shall 16 compute the supplemental state aid for media services in the 17 budget year by multiplying the state media services cost per 18 pupil in the base year times the state percent of growth for 19 the budget year, and the total amount funded in each area for 20 media services cost in the budget year equals the area media 21 services cost per pupil in the base year plus the supplemental 22 state aid for media services in the budget year times the 23 enrollment served in the budget year. Funds For fiscal years 24 beginning before July 1, 2025, funds shall be paid to area 25 education agencies as provided in section 257.35 . For fiscal 26 years beginning on or after July 1, 2025, funds may be used by 27 the school district for media services provided by the district 28 or by contract through an area education agency. A school 29 district may use unreserved fund balances for media services 30 for special education support services. 31 2. Up to thirty percent of the budget of an area for media 32 services may be expended for media resource material including 33 the purchase or replacement of material required in section 34 273.6, subsection 1 . Funds shall be paid to area education 35 -19- HF 2612 (2) 90 jda/jh/md 19/ 25