Senate File 445 - Reprinted SENATE FILE 445 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 1135) (As Amended and Passed by the Senate April 23, 2025 ) A BILL FOR An Act relating to early childhood education and care, 1 including by modifying provisions related to the statewide 2 preschool program, the child development coordinating 3 council, programs for at-risk children, the responsibilities 4 of the department of education, the early childhood Iowa 5 initiative, and the state child care assistance program, 6 establishing the child care continuum partnership grants 7 pilot program within the department of health and human 8 services, making appropriations and reducing appropriations, 9 and including effective date provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 SF 445 (3) 91 jda/jh/mb
S.F. 445 DIVISION I 1 STATEWIDE PRESCHOOL PROGRAM 2 Section 1. Section 256.163, subsection 1, paragraph c, Code 3 2025, is amended to read as follows: 4 c. Preschool programs at school districts approved to 5 participate in the preschool program , or at community-based 6 providers approved to directly participate in the preschool 7 program, under chapter 256C . 8 Sec. 2. Section 256C.1, subsection 1, Code 2025, is amended 9 to read as follows: 10 1. “Approved local program” means a school district’s 11 program or community-based provider’s program for four-year-old 12 children approved by the department of education to provide 13 high quality high-quality preschool instruction. 14 Sec. 3. Section 256C.1, Code 2025, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 1A. Community-based provider approved 17 to directly participate in the preschool program” means a 18 community-based provider that meets the community-based 19 provider requirements under section 256C.3 and has been 20 approved by the department to directly participate in the 21 preschool program. “Community-based provider approved to 22 directly participate in the preschool program” does not mean a 23 community-based provider that partners with a school district’s 24 approved local program. 25 Sec. 4. Section 256C.3, subsection 1, paragraph b, Code 26 2025, is amended to read as follows: 27 b. If space and funding are available, including funding 28 from another school district account or fund from which 29 preschool program expenditures are authorized by law, a school 30 district approved to participate in the preschool program or 31 community-based provider approved to directly participate in 32 the preschool program may enroll and pay the cost of attendance 33 for a younger or older child in the preschool program; however, 34 the child shall not be counted for state funding purposes. 35 -1- SF 445 (3) 91 jda/jh/mb 1/ 24
S.F. 445 Sec. 5. Section 256C.3, subsection 2, paragraph a, 1 subparagraph (1), Code 2025, is amended to read as follows: 2 (1) The individual is either employed by or under contract 3 with the school district , or with the community-based provider 4 approved to directly participate in the preschool program, that 5 is implementing the program. 6 Sec. 6. Section 256C.3, subsection 3, unnumbered paragraph 7 1, Code 2025, is amended to read as follows: 8 The state board shall adopt rules to further define the 9 following preschool program requirements which shall be used 10 to determine whether or not a local program implemented by a 11 school district approved to implement the preschool program or 12 a community-based provider directly approved to implement the 13 preschool program qualifies as an approved local program: 14 Sec. 7. Section 256C.3, subsection 3, paragraph h, Code 15 2025, is amended to read as follows: 16 h. Provision for ensuring that children receiving care from 17 other child care arrangements can participate in the preschool 18 program with minimal disruption due to transportation and 19 movement from one site to another. The children participating 20 in the preschool program may be transported by the school 21 district or community provider to activities associated with 22 the program along with other children. 23 Sec. 8. Section 256C.3, Code 2025, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 4A. Community-based provider 26 requirements. The state board shall adopt rules to further 27 define the following requirements of community-based providers 28 approved to directly participate in the preschool program in 29 implementing the preschool program: 30 a. Methods of demonstrating readiness to implement 31 high-quality instruction in the local program shall be 32 identified. 33 b. A community-based provider shall participate in data 34 collection and performance measurement processes and reporting 35 -2- SF 445 (3) 91 jda/jh/mb 2/ 24
S.F. 445 as defined by rule. 1 c. Professional development for community-based provider 2 preschool teachers shall be addressed in the community-based 3 provider’s professional development plan. 4 Sec. 9. Section 256C.3, subsection 5, paragraphs a, b, and 5 d, Code 2025, are amended to read as follows: 6 a. The department shall implement an application and 7 selection process for school district participation and 8 community-based provider participation in the preschool program 9 that includes but is not limited to the enrollment requirements 10 provided under section 256C.4 . 11 b. The department shall track the progress of 12 students served by a school district preschool program or 13 community-based provider preschool program and the students’ 14 performance in elementary and secondary education. 15 d. The state board, in collaboration with the department, 16 shall ensure that the administrative rules adopted to support 17 the preschool program emphasize that children’s access to 18 the program is voluntary, that the preschool foundation aid 19 provided to a school district or a community-based provider is 20 provided based upon the enrollment of eligible students in the 21 school district’s or community-based provider’s local program 22 regardless of whether an eligible student is a resident of the 23 school district, and that agreements entered into by a school 24 district for the provision of programming in settings other 25 than the school district’s facilities are between the school 26 district and the private provider. 27 Sec. 10. Section 256C.4, subsection 1, Code 2025, is amended 28 to read as follows: 29 1. General State funding for school district approved to 30 participate in the preschool program . 31 a. State funding provided under the preschool program to 32 school districts shall be based upon the enrollment of eligible 33 students in the preschool programming provided by a school 34 district approved to participate in the preschool program. 35 -3- SF 445 (3) 91 jda/jh/mb 3/ 24
S.F. 445 b. A school district approved to participate in the 1 preschool program may authorize expenditures for the district’s 2 preschool programming from any of the revenue sources available 3 to the district from the sources listed in chapter 298A , 4 provided the expenditures are within the uses permitted for the 5 revenue source. In addition, the use of the revenue source 6 for preschool or prekindergarten programming must have been 7 approved prior to any expenditure from the revenue source for 8 the district’s approved local program. 9 c. Funding provided under the preschool program is intended 10 to supplement, not supplant, existing public funding for 11 preschool programming. 12 d. Preschool foundation aid funding shall not be commingled 13 with the other state aid payments made under section 257.16 14 to a school district and shall be accounted for by the local 15 school district separately from the other state aid payments. 16 Preschool foundation aid payments made to school districts are 17 miscellaneous income for purposes of chapter 257 . A school 18 district shall maintain a separate listing within its budget 19 for preschool foundation aid payments received and expenditures 20 made. A school district shall certify to the department of 21 education that preschool foundation aid funding received by 22 the school district was used to supplement, not supplant, 23 moneys otherwise received and used by the school district for 24 preschool programming. 25 e. Preschool foundation aid funding shall not be used for 26 the costs of constructing a facility in connection with an 27 approved local program. Preschool foundation aid funding may 28 be used by approved local programs and community providers 29 for any purpose determined by the board of directors of the 30 school district to meet standards for high-quality preschool 31 instruction and for purposes that directly or indirectly 32 benefit students enrolled in the approved local program, 33 including but not limited to professional development for 34 preschool teachers, instructional equipment and supplies, 35 -4- SF 445 (3) 91 jda/jh/mb 4/ 24
S.F. 445 material and equipment designed to develop pupils’ large and 1 small motor skills, translation services, playground equipment 2 and repair costs, food and beverages used by children in the 3 approved local program, safety equipment, facility rental fees, 4 and for other direct costs that enhance the approved local 5 program, including by contracting with community partners for 6 any such services. Preschool foundation aid funding may be 7 used by approved local programs for the costs of transportation 8 involving children participating in the preschool program. 9 The costs of transporting other children associated with the 10 preschool program or transported as provided in section 256C.3, 11 subsection 3 , paragraph “h” , may be prorated by the school 12 district. Preschool foundation aid funding received by an 13 approved local program that remains unexpended and unobligated 14 at the end of a fiscal year beginning on or after July 1, 2017, 15 shall be used to build the approved local program’s preschool 16 program capacity in the next succeeding fiscal year excluding 17 that portion of such unexpended and unobligated funding that 18 the school district authorizes for transfer for deposit in the 19 school district’s flexibility account established under section 20 298A.2, subsection 2 , if the statutory requirements for the use 21 of such funding are met. For purposes of determining whether a 22 school district has authority to transfer preschool foundation 23 aid funding for deposit in the school district’s flexibility 24 account established under section 298A.2, subsection 2 , the 25 school district must have provided preschool programming 26 during the fiscal year for which funding remains unexpended 27 and unobligated to all eligible students for whom a timely 28 application for enrollment was submitted. 29 f. The receipt of funding by a school district for the 30 purposes of this chapter , the need for additional funding 31 for the purposes of this chapter , or the enrollment count of 32 eligible students under this chapter shall not be considered 33 to be unusual circumstances, create an unusual need for 34 additional funds, or qualify under any other circumstances that 35 -5- SF 445 (3) 91 jda/jh/mb 5/ 24
S.F. 445 may be used by the school budget review committee to grant 1 supplemental aid to or establish a modified supplemental amount 2 for a school district under section 257.31 . 3 g. For the fiscal year beginning July 1, 2015, and each 4 succeeding fiscal year, of the amount of preschool foundation 5 aid received by a school district for a fiscal year in 6 accordance with section 257.16 , not more than five percent may 7 be used by the school district for administering the district’s 8 approved local program. Outreach activities and rent for 9 facilities not owned by the school district are permissive uses 10 of the administrative funds. 11 h. For the fiscal year beginning July 1, 2015, and each 12 succeeding fiscal year, of the amount of preschool foundation 13 aid received by a school district for a fiscal year in 14 accordance with section 257.16 , not less than ninety-five 15 percent of the per pupil amount shall be passed through to 16 a community-based provider for each pupil enrolled in the 17 district’s approved local program. For the fiscal year 18 beginning July 1, 2015, and each succeeding fiscal year, not 19 more than ten percent of the amount of preschool foundation aid 20 passed through to a community-based provider may be used by the 21 community-based provider for administrative costs. The costs 22 of outreach activities and rent for facilities not owned by 23 the school district are permissive administrative costs. The 24 costs of transportation involving children participating in the 25 preschool program and other children may be prorated. 26 Sec. 11. Section 256C.4, Code 2025, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 1A. State preschool funding for 29 community-based providers approved to directly participate in the 30 preschool program. 31 a. State preschool funding shall not be used for the costs 32 of constructing a facility in connection with an approved 33 local program. Preschool foundation aid funding may be used 34 by community-based providers for any purpose determined by the 35 -6- SF 445 (3) 91 jda/jh/mb 6/ 24
S.F. 445 community-based provider to meet standards for high-quality 1 preschool instruction and for purposes that directly or 2 indirectly benefit students enrolled in the approved local 3 program, including but not limited to professional development 4 for preschool teachers, instructional equipment and supplies, 5 material and equipment designed to develop pupils’ large and 6 small motor skills, translation services, playground equipment 7 and repair costs, food and beverages used by children in the 8 approved local program, safety equipment, facility rental fees, 9 and for other direct costs that enhance the approved local 10 program, including by contracting with other community partners 11 for any such services. State preschool funding may be used 12 by approved local programs for the costs of transportation 13 involving children participating in the preschool program. 14 Preschool foundation aid funding received by a community-based 15 provider approved to directly participate in the preschool 16 program that remains unexpended and unobligated at the end 17 of a fiscal year shall be used to build the community-based 18 provider’s capacity in the next succeeding fiscal year. 19 b. For the fiscal year beginning July 1, 2025, and each 20 succeeding fiscal year, of the amount of state preschool 21 funding received by a community-based provider approved 22 to directly participate in the preschool program for a 23 fiscal year, not more than five percent may be used by the 24 community-based provider for administering the approved local 25 program. Outreach activities and rent for facilities not owned 26 by the community-based provider are permissive uses of the 27 administrative funds. 28 Sec. 12. Section 256C.4, subsection 2, paragraph a, Code 29 2025, is amended to read as follows: 30 a. To be included as an eligible student in the enrollment 31 count of the preschool programming provided by a school 32 district approved to participate in the preschool program or 33 a community-based provider approved to directly participate 34 in the preschool program , a child must be four years of age 35 -7- SF 445 (3) 91 jda/jh/mb 7/ 24
S.F. 445 by September 15 in the base year and attending the school 1 district’s or community-based provider’s approved local 2 program. 3 Sec. 13. Section 256C.5, subsection 1, paragraphs c and d, 4 Code 2025, are amended to read as follows: 5 c. “Preschool budget enrollment” means the figure that is 6 equal to fifty percent of the actual enrollment of eligible 7 students in the preschool programming provided by a school 8 district approved to participate in the preschool program or a 9 community-based provider approved to directly participate in 10 the preschool program on October 1 of the base year, or the 11 first Monday in October if October 1 falls on a Saturday or 12 Sunday. 13 d. “Preschool foundation aid” means the product of the 14 regular program state cost per pupil for the budget year 15 multiplied by the school district’s preschool budget enrollment 16 or the community-based provider’s preschool budget enrollment . 17 Sec. 14. Section 256C.5, Code 2025, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 2A. Preschool foundation aid community-based 20 provider amount. For the initial school year for which a 21 community-based provider approved to directly participate in 22 the preschool program receives that approval and implements 23 the preschool program, the preschool foundation aid payable 24 to the community-based provider is the product of the regular 25 program state cost per pupil for the school year multiplied 26 by fifty percent of the community-based provider’s eligible 27 student enrollment on the date in the school year determined 28 by rule. For budget years subsequent to the initial year 29 for which a community-based provider approved to directly 30 participate in the preschool program receives that initial 31 approval and implements the preschool program, the preschool 32 foundation aid is the same as calculated pursuant to subsection 33 1. The funding for the preschool foundation aid payable to the 34 community-based provider shall be paid from the appropriation 35 -8- SF 445 (3) 91 jda/jh/mb 8/ 24
S.F. 445 made in section 257.16. Continuation of a community-based 1 provider’s participation in the preschool program for a second 2 or subsequent budget year is subject to the approval of the 3 department based upon the community-based provider’s compliance 4 with accountability provisions and the department’s on-site 5 review of the community-based provider’s implementation of the 6 preschool program. 7 Sec. 15. Section 256C.5, subsection 3, Code 2025, is amended 8 to read as follows: 9 3. Aid payments. 10 a. Preschool foundation aid shall be paid as part of the 11 state aid payments made to school districts in accordance with 12 section 257.16 . 13 b. Preschool foundation aid paid directly to community-based 14 providers shall be paid to the community-based provider in 15 monthly installments beginning on September 15 of a budget year 16 and ending on or about June 15 of the budget year as determined 17 by the department of management, taking into consideration the 18 relative budget and cash position of the state resources. 19 Sec. 16. EMERGENCY RULES. The state board of education may 20 adopt emergency rules under section 17A.4, subsection 3, and 21 section 17A.5, subsection 2, paragraph “b”, to implement the 22 provisions of this division of this Act and the rules shall 23 be effective immediately upon filing unless a later date is 24 specified in the rules. Any rules adopted in accordance with 25 this section shall also be published as a notice of intended 26 action as provided in section 17A.4. 27 DIVISION II 28 CHILD DEVELOPMENT COORDINATING COUNCIL AND PROGRAMS FOR AT-RISK 29 CHILDREN 30 Sec. 17. Section 256.9, subsection 28, Code 2025, is amended 31 to read as follows: 32 28. Develop , in conjunction with the child development 33 coordinating council or other similar agency, child-to-staff 34 ratio recommendations and standards for at-risk programs based 35 -9- SF 445 (3) 91 jda/jh/mb 9/ 24
S.F. 445 on national literature and test results and Iowa longitudinal 1 test results. 2 Sec. 18. Section 256.9, subsection 31, paragraph b, Code 3 2025, is amended to read as follows: 4 b. Standards and materials developed shall include materials 5 which employ developmentally appropriate practices and 6 incorporate substantial parental involvement. The materials 7 and standards shall include alternative teaching approaches 8 including collaborative teaching and alternative dispute 9 resolution training. The department shall consult with the 10 child development coordinating council, the department of 11 health and human services, the state board of regents center 12 for early developmental education, the area education agencies, 13 the department of human development and family studies in the 14 college of human sciences at Iowa state university of science 15 and technology, the early childhood elementary division of the 16 college of education at the university of Iowa, and the college 17 of education at the university of northern Iowa, in developing 18 these standards and materials. 19 Sec. 19. Section 256.163, subsection 1, paragraph d, Code 20 2025, is amended to read as follows: 21 d. Shared visions programs receiving grants from the child 22 development coordinating council department of education under 23 section 256A.3 . 24 Sec. 20. Section 256A.3, Code 2025, is amended to read as 25 follows: 26 256A.3 Duties of council the department of education . 27 The child development coordinating council department of 28 education shall promote the provision of child development 29 services to at-risk three-year-old and four-year-old children, 30 and shall do all of the following : 31 1. Develop a definition of at-risk children for the purposes 32 of this chapter . The definition shall include income, family 33 structure, the child’s level of development, and availability 34 or accessibility for the child of a head start or other child 35 -10- SF 445 (3) 91 jda/jh/mb 10/ 24
S.F. 445 care program as criteria. 1 2. Establish minimum guidelines for comprehensive early 2 child development services for at-risk three-year-and 3 four-year-old children. The guidelines shall reflect 4 current research findings on the necessary components for 5 cost-effective child development services. 6 3. At least biennially, develop an inventory of child 7 development services provided to at-risk three-year- and 8 four-year-old children in this state and identify the number of 9 children receiving and not receiving these services, the types 10 of programs under which the services are received, the degree 11 to which each program meets the council’s minimum guidelines 12 for a comprehensive program, and the reasons children not 13 receiving the services are not being served. The council is 14 not required to conduct independent research in developing the 15 inventory, but shall determine information needs necessary to 16 provide a more complete inventory. 17 4. 2. Subject to the availability of funds appropriated 18 or otherwise available for the purpose of providing child 19 development services, award grants for programs that provide 20 new or additional child development services to at-risk 21 children. 22 a. In awarding program grants to an agency or individual, 23 the council department of education shall consider the 24 following: 25 (1) The quality of the staff and staff background in child 26 development services. 27 (2) The degree to which the program is or will be integrated 28 with existing community resources and has the support of the 29 local community. 30 (3) The ability of the program to provide for child care 31 in addition to child development services for families needing 32 full-day child care. 33 (4) A staff-to-children ratio within the guidelines 34 established under subsection 2 , but not less than one staff 35 -11- SF 445 (3) 91 jda/jh/mb 11/ 24
S.F. 445 member per eight children. 1 (5) The degree to which the program involves and works with 2 the parents, and includes home visits, instruction for parents 3 on parenting skills, on enhancement of skills in providing for 4 their children’s learning and development, and the physical, 5 mental, and emotional development of children, and experiential 6 education. 7 (6) The manner in which health, medical, dental, and 8 nutrition services are incorporated into the program. 9 (7) The degree to which the program complements existing 10 programs and services for at-risk three-year-old and 11 four-year-old children available in the area, including other 12 child care services, services provided through the school 13 district, and services available through area education 14 agencies. 15 (8) The degree to which the program can be monitored and 16 evaluated to determine its ability to meet its goals. 17 (9) (8) The provision of transportation or other auxiliary 18 services that may be necessary for families to participate in 19 the program. 20 (10) (9) The provision of staff training and development, 21 and staff compensation sufficient to assure continuity. 22 b. Program grants funded under this subsection may integrate 23 children not meeting at-risk criteria into the program and 24 shall establish a fee for participation in the program in the 25 manner provided in section 279.49 , but grant funds shall not be 26 used to pay the costs for those children. 27 c. Programs awarded grants under this subsection shall meet 28 the national association for the education of young children 29 program standards and accreditation criteria, the Iowa quality 30 preschool program standards and criteria, or other approved 31 program standards as determined by the department of education. 32 Programs awarded grants prior to July 1, 2015, shall continue 33 to be evaluated and assessed based on eligibility and award 34 criteria established under rules adopted by the state board of 35 -12- SF 445 (3) 91 jda/jh/mb 12/ 24
S.F. 445 education pursuant to section 279.51 prior to June 30, 2015. 1 5. 3. Encourage the submission of grant requests from all 2 potential providers of child development services statewide 3 voluntary preschool programming and shall be flexible in 4 evaluating grants, recognizing that different types of programs 5 may be suitable for different locations in the state. 6 a. Requests for grants must contain a procedure for 7 evaluating the effectiveness of the program and accounting 8 procedures for monitoring the expenditure of grant moneys. 9 b. The council department of education shall seek to 10 use performance-based measures to evaluate programs. Not 11 more than five percent of any state funds appropriated for 12 child development purposes may be used for administration and 13 evaluation. 14 6. 4. Annually, submit recommendations to the governor 15 and the general assembly on the need for investment in child 16 development services in the state. 17 7. 5. Subject to a decision by the council department of 18 education to initiate the programs, develop criteria for and 19 award grants under section 279.51, subsection 2 . 20 8. Encourage the establishment of programs that will 21 enhance the skills of parents in parenting and in providing for 22 the learning and development of their children. 23 Sec. 21. Section 256A.4, subsection 2, paragraph g, Code 24 2025, is amended to read as follows: 25 g. Role modeling and mentoring techniques for families of 26 children who meet one or more of the criteria established for 27 the definition of at-risk children by the child development 28 coordinating council department of education . 29 Sec. 22. Section 256A.5, subsection 2, Code 2025, is amended 30 by striking the subsection. 31 Sec. 23. Section 256C.3, subsection 3, paragraph e, Code 32 2025, is amended to read as follows: 33 e. Collaboration with participating families, early care 34 providers, and community partners including but not limited to 35 -13- SF 445 (3) 91 jda/jh/mb 13/ 24
S.F. 445 early childhood Iowa area boards, head start programs, shared 1 visions and other programs provided under the auspices of the 2 child development coordinating council department , licensed 3 child care centers, registered child development homes, area 4 education agencies, child care resource and referral services 5 provided under section 237A.26 , early childhood special 6 education programs, services funded by Tit. I of the federal 7 Elementary and Secondary Education Act of 1965, and family 8 support programs. 9 Sec. 24. Section 256C.3, subsection 4, paragraph a, Code 10 2025, is amended to read as follows: 11 a. Methods of demonstrating community readiness to 12 implement high-quality instruction in a local program 13 shall be identified. The potential provider shall submit 14 a collaborative program proposal that demonstrates the 15 involvement of multiple community stakeholders including 16 but not limited to, and only as applicable, parents, the 17 school district, accredited nonpublic schools and faith-based 18 representatives, the area education agency, the early childhood 19 Iowa area board, representatives of business, head start 20 programs, shared visions and other programs provided under 21 the auspices of the child development coordinating council 22 department , center-based and home-based providers of child 23 care services, human services, public health, and economic 24 development programs. The methods may include but are not 25 limited to a school district providing evidence of a public 26 hearing on the proposed programming and written documentation 27 of collaboration agreements between the school district, 28 existing community providers, and other community stakeholders 29 addressing operational procedures and other critical measures. 30 Sec. 25. Section 262.71, subsection 8, Code 2025, is amended 31 by striking the subsection. 32 Sec. 26. Section 273.2, subsection 6, unnumbered paragraph 33 1, Code 2025, is amended to read as follows: 34 The area education agency board may provide for the 35 -14- SF 445 (3) 91 jda/jh/mb 14/ 24
S.F. 445 following programs and services to local school districts, and 1 at the request of local school districts to providers of child 2 development services who have received grants under chapter 3 256A from the child development coordinating council department 4 of education , within the limits of funds available: 5 Sec. 27. Section 279.51, subsection 1, Code 2025, is amended 6 to read as follows: 7 1. There is appropriated from the general fund of the state 8 to the department of education for the fiscal year beginning 9 July 1, 2007 2025 , and each succeeding fiscal year, the sum of 10 twelve million six hundred six thousand one hundred ninety-six 11 ten million five hundred twenty-four thousand three hundred 12 eighty-nine dollars. The moneys shall be allocated as follows: 13 a. Two hundred seventy-five thousand eight hundred 14 sixty-four Two hundred twenty-nine thousand two hundred 15 sixty-two dollars of the funds appropriated shall be allocated 16 to the area education agencies to assist school districts in 17 developing program plans and budgets under this section and to 18 assist school districts and child development programs under 19 section 256A.3 in meeting other responsibilities in early 20 childhood education. 21 b. For the fiscal year beginning July 1, 2007 2025 , and 22 for each succeeding fiscal year, eight million five hundred 23 thirty-six thousand seven hundred forty ten million twelve 24 thousand five hundred twenty-seven dollars of the funds 25 appropriated shall be allocated to the child development 26 coordinating council established in chapter 256A department 27 of education for the purposes set out in subsection 2 , of 28 this section and section 256A.3 , and to be used as grants to 29 early childhood programs that demonstrate the greatest need 30 for programs for at-risk children and the families of at-risk 31 children . 32 c. For the fiscal year beginning July 1, 2007, and for 33 each fiscal year thereafter, three million five hundred 34 ten thousand nine hundred ninety-two dollars of the funds 35 -15- SF 445 (3) 91 jda/jh/mb 15/ 24
S.F. 445 appropriated shall be allocated as grants to school districts 1 that have elementary schools that demonstrate the greatest 2 need for programs for at-risk students with preference given 3 to innovative programs for the early elementary school years. 4 School districts receiving grants under this paragraph shall 5 at a minimum provide activities and materials designed to 6 encourage children’s self-esteem, provide role modeling and 7 mentoring techniques in social competence and social skills, 8 and discourage inappropriate drug use. The grant allocations 9 made in this paragraph may be renewed for additional periods of 10 time. Of the amount allocated under this paragraph for each 11 fiscal year, seventy-five thousand dollars shall be allocated 12 to school districts which have an actual student population of 13 ten thousand or less and have an actual non-English speaking 14 student population which represents greater than five percent 15 of the total actual student population for grants to elementary 16 schools in those districts. 17 d. c. Notwithstanding section 256A.3, subsection 5 3 , of 18 the amount appropriated in this subsection for the fiscal year 19 beginning July 1, 2007 2025 , and for each succeeding fiscal 20 year, up to two hundred eighty-two thousand six hundred dollars 21 may be used for administrative costs. 22 Sec. 28. Section 279.51, subsection 2, paragraph a, 23 unnumbered paragraph 1, Code 2025, is amended to read as 24 follows: 25 Funds allocated under subsection 1 , paragraph “b” , shall be 26 used by the child development coordinating council department 27 of education for the following: 28 Sec. 29. Section 279.51, subsection 2, paragraph a, 29 subparagraphs (1) and (2), Code 2025, are amended to read as 30 follows: 31 (1) To continue funding for programs previously funded by 32 grants awarded under section 256A.3 and to provide additional 33 grants under section 256A.3 . The council department shall seek 34 to provide grants on the basis of the location within the state 35 -16- SF 445 (3) 91 jda/jh/mb 16/ 24
S.F. 445 of children meeting at-risk definitions. 1 (2) At the discretion of the child development coordinating 2 council department of education , award grants for the 3 following: 4 (a) To to school districts to establish programs for 5 three-year-old , and four-year-old , and five-year-old at-risk 6 children. 7 (b) To provide grants to provide educational support 8 services to parents of at-risk children age birth through three 9 years. 10 Sec. 30. Section 279.51, subsection 2, paragraph b, Code 11 2025, is amended to read as follows: 12 b. A grantee under this subsection may direct the use of 13 moneys received to serve any qualifying child ranging in age 14 from three years old to five four years old, regardless of the 15 age of population indicated on the grant request in its initial 16 year of application. A grantee is encouraged to consider the 17 degree to which the program complements existing programs 18 and services for three-year-old , and four-year-old , and 19 five-year-old at-risk children available in the area, including 20 other child care and preschool services, services provided 21 through a school district, and services available through an 22 area education agency. 23 Sec. 31. Section 279.51, subsection 3, Code 2025, is amended 24 by striking the subsection. 25 Sec. 32. REPEAL. Section 256A.2, Code 2025, is repealed. 26 DIVISION III 27 DEPARTMENT OF EDUCATION RESPONSIBILITIES 28 Sec. 33. Section 256.9, Code 2025, is amended by adding the 29 following new subsections: 30 NEW SUBSECTION . 69. a. Review and conduct research related 31 to the most effective evidence-based curricula, instructional 32 materials, and evidence-based or promising practices used in 33 prekindergarten programs and in preschools, which shall include 34 a review of the curricula and instructional materials used by 35 -17- SF 445 (3) 91 jda/jh/mb 17/ 24
S.F. 445 prekindergarten programs in this state, preschool programs 1 serving children with individualized education programs, and 2 preschool programs created in accordance with chapters 256A and 3 256C. 4 b. Develop and make available on the department’s internet 5 site a list of the most effective evidence-based curricula, 6 instructional materials, and evidence-based or promising 7 practices for prekindergarten programs and preschools. 8 NEW SUBSECTION . 70. a. Develop a preschool accountability 9 system representing, at minimum, developmental and learning 10 outcomes and continuous implementation of high-quality program 11 standards for school districts offering a prekindergarten 12 program, accredited nonpublic schools offering a 13 prekindergarten program, prekindergarten and preschool programs 14 serving children with individualized education programs, and 15 preschool programs created in accordance with chapters 256A 16 and 256C. The preschool accountability system must utilize, 17 at minimum, data from child performance and growth measures 18 described in section 279.60, continuous improvement activities 19 described in chapters 256A and 256C, and other measures and 20 activities defined by the department. 21 b. Provide, in coordination with the department of 22 health and human services, an alignment of an outcomes-based 23 accountability system for school districts offering a 24 prekindergarten program, accredited nonpublic schools offering 25 a prekindergarten program, preschool programs serving children 26 with individualized education programs, and preschool programs 27 created in accordance with chapters 256A and 256C. The 28 outcomes-based accountability system shall take into account 29 the voluntary quality rating system established pursuant to 30 section 237A.30. 31 NEW SUBSECTION . 71. a. Review and revise the state early 32 learning standards and standards related to preschool programs 33 serving children with individualized education programs and 34 preschool programs created in accordance with chapters 256A and 35 -18- SF 445 (3) 91 jda/jh/mb 18/ 24
S.F. 445 256C. 1 b. Provide professional development services to school 2 districts offering a prekindergarten program, accredited 3 nonpublic schools offering a prekindergarten program, preschool 4 programs serving children with individualized education 5 programs, and preschool programs created in accordance with 6 chapters 256A and 256C to assist such programs in implementing 7 the revised early learning standards, preschool assessments, 8 high-quality program standards, and standards related to 9 preschool programs. 10 DIVISION IV 11 EARLY CHILDHOOD IOWA INITIATIVE 12 Sec. 34. Section 256I.1, subsection 4, Code 2025, is amended 13 to read as follows: 14 4. “Early childhood Iowa area” means a geographic area 15 designated by the department in accordance with this chapter . 16 Sec. 35. Section 256I.4, subsection 3, Code 2025, is amended 17 by striking the subsection. 18 Sec. 36. Section 256I.6, subsection 2, Code 2025, is amended 19 by striking the subsection and inserting in lieu thereof the 20 following: 21 2. The department shall designate early childhood Iowa 22 areas in the same number and using the same geographic 23 boundaries as the behavioral health districts designated by the 24 department pursuant to section 225A.4, as enacted by 2024 Iowa 25 Acts, ch. 1161. 26 Sec. 37. Section 256I.6, subsections 3 and 4, Code 2025, are 27 amended by striking the subsections. 28 Sec. 38. Section 256I.8, subsection 1, Code 2025, is amended 29 by adding the following new paragraph: 30 NEW PARAGRAPH . h. Implement evidence-based services that 31 are eligible for funding under the federal Social Security Act, 32 Tit. IV-E. 33 Sec. 39. Section 256I.9, subsection 4, paragraphs a, b, and 34 c, Code 2025, are amended to read as follows: 35 -19- SF 445 (3) 91 jda/jh/mb 19/ 24
S.F. 445 a. A school ready children grant shall be awarded to an 1 area board annually, as funding is available. Receipt of 2 continued funding is subject to submission of the required 3 annual report data and the state board’s determination that the 4 area board is making progress, through the use of specific, 5 quantifiable performance measures and locally identified 6 community-wide indicators, toward achieving the desired results 7 and other results identified in the community plan. Each area 8 board shall participate in the designation process to measure 9 the area’s area board’s success. If the use of performance 10 measures and community-wide indicators does not show that an 11 area board has made progress toward achieving the results 12 identified in the community plan, the state board shall require 13 a plan of corrective action, provide technical assistance, 14 withhold any increase in funding, or withdraw grant funding. 15 b. The state board shall distribute school ready children 16 grant moneys to area boards with approved comprehensive 17 community plans based upon a determination of an early 18 childhood Iowa area’s designation the success of the area 19 board . 20 c. An area board’s designation success shall be determined 21 by evidence of successful collaboration among public and 22 private early care, education, health, and human services 23 interests in the area or a documented program design that 24 supports a strong likelihood of a successful collaboration 25 between these interests. 26 Sec. 40. Section 256I.11, subsection 4, paragraph a, Code 27 2025, is amended to read as follows: 28 a. An early childhood programs grant account is created in 29 the fund under the authority of the director of the department. 30 Moneys credited to the account are appropriated to and shall 31 be distributed by the department in the form of grants to 32 early childhood Iowa areas that the department determines are 33 eligible pursuant to criteria established by the state board in 34 accordance with law. The criteria shall include but are not 35 -20- SF 445 (3) 91 jda/jh/mb 20/ 24
S.F. 445 limited to a requirement that an early childhood Iowa area must 1 be designated by the state board in order to be eligible to 2 receive an early childhood programs grant. 3 Sec. 41. NEW SECTION . 256I.11A Early childhood Iowa 4 initiative —— use of funding. 5 The department shall not do any of the following: 6 1. Use state moneys that are appropriated for the early 7 childhood Iowa initiative to supplant existing programs, 8 services, or activities funded by other funding sources. 9 2. Use state moneys appropriated for the early childhood 10 Iowa initiative for child care assistance for an individual 11 who is otherwise eligible for the state child care assistance 12 program established pursuant to section 237A.13, unless 13 the individual provides documentation to the department 14 demonstrating denial of eligibility for the state child care 15 assistance program. 16 Sec. 42. EFFECTIVE DATE. This division of this Act takes 17 effect July 1, 2026. 18 DIVISION V 19 CHILD CARE WORKFORCE —— STATE CHILD CARE ASSISTANCE ELIGIBILITY 20 Sec. 43. NEW SECTION . 237A.13A State child care assistance 21 —— child care workforce. 22 1. Notwithstanding any provision of section 237A.13 to 23 the contrary, a child shall be eligible for the state child 24 care assistance program under section 237A.13 if a parent, 25 guardian, or custodian meets all of the following requirements, 26 as applicable: 27 a. The parent, guardian, or custodian is employed at a child 28 care facility or child care home that has an agreement with the 29 department to accept reimbursement from the state child care 30 assistance program. 31 b. The parent, guardian, or custodian works in a child 32 care facility or child care home an average minimum of 33 thirty-two hours per week during the month in a position with 34 a primary duty of providing child care directly to children, 35 -21- SF 445 (3) 91 jda/jh/mb 21/ 24
S.F. 445 and is regularly counted in the minimum child-to-staff ratio 1 established by the department by rule. 2 c. If the parent, guardian, or custodian is employed at 3 a child care home or a child development home, the parent, 4 guardian, or custodian does not provide child care to the 5 parent, guardian, or custodian’s own child. A co-provider 6 at a child development home may qualify for state child care 7 assistance if the person meets all the requirements specified 8 in this section and by the department by rule. 9 d. The parent, guardian, or custodian is not a substitute or 10 an assistant at a child care home or a child development home. 11 e. Based on the department’s evaluation of the parent, 12 guardian, or custodian’s application for state child care 13 assistance, the department has determined the parent, guardian, 14 or custodian has a need for child care. 15 f. The parent, guardian, or custodian is not the owner of 16 the child care facility or child care home where the children 17 are enrolled. 18 2. A director, co-director, or other administrative 19 staff member of a child care facility may qualify for state 20 child care assistance pursuant to subsection 1 if such person 21 is regularly counted in the minimum child-to-staff ratio 22 established by the department by rule. 23 3. A person participating in the state child care assistance 24 program pursuant to eligibility established under this section 25 shall make copayments based on the person’s household income 26 for services received from the program. 27 4. The department shall adopt rules pursuant to chapter 17A 28 to administer this section. 29 DIVISION VI 30 CHILD CARE CONTINUUM PARTNERSHIP GRANTS —— PILOT PROGRAM 31 Sec. 44. Section 256I.11, Code 2025, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 6. a. A child care continuum partnership 34 grants pilot program account is created in the fund under the 35 -22- SF 445 (3) 91 jda/jh/mb 22/ 24
S.F. 445 authority of the director of the department. Beginning July 1, 1 2026, the department shall credit not more than eleven million 2 dollars to the account annually. Moneys credited to the 3 account are appropriated to and shall be used by the department 4 to create and administer, in collaboration with early childhood 5 Iowa area boards created pursuant to section 256I.7 and the 6 department of education, a child care continuum partnership 7 grants pilot program. 8 b. (1) On or before November 1, 2025, the department shall 9 publish information on the department’s internet site related 10 to the opportunities available under the child care continuum 11 partnership grants pilot program. 12 (2) Beginning July 1, 2026, the child care continuum 13 partnership grants pilot program shall award competitive grants 14 to partnerships between providers of statewide voluntary 15 preschool programming and child care centers licensed pursuant 16 to chapter 237A to provide full-day early childhood education 17 and care programming for participants in the statewide 18 voluntary preschool program created in accordance with chapter 19 256C. 20 c. The department shall maintain discretionary funding 21 for local decision making relating to the early childhood 22 initiative. 23 d. In addition to the appropriation in paragraph “a” , 24 beginning July 1, 2025, the department shall credit not 25 more than five million dollars to the child care continuum 26 partnership grants pilot program account from the amounts 27 appropriated to the department pursuant to the portion of 28 2025 Iowa Acts, Senate File 626, that appropriates moneys 29 in the amounts anticipated to be received from the federal 30 government under 42 U.S.C. ch. 105, subch. II-B, or any 31 successor legislation, if enacted. Moneys credited to the 32 account pursuant to this paragraph are appropriated to and 33 shall be used by the department to create and administer, in 34 collaboration with early childhood Iowa area boards created 35 -23- SF 445 (3) 91 jda/jh/mb 23/ 24
S.F. 445 pursuant to section 256I.7 and the department of education, the 1 child care continuum partnership grants pilot program. 2 e. The department shall adopt rules pursuant to chapter 17A 3 as necessary to administer the child care continuum partnership 4 grants pilot program. 5 f. This subsection is repealed July 1, 2029. 6 DIVISION VII 7 EARLY CHILDHOOD IOWA AREA BOARDS —— REPORTING 8 Sec. 45. EARLY CHILDHOOD IOWA AREA BOARDS —— MONTHLY 9 REPORTING REQUIREMENTS. On a monthly basis beginning July 1, 10 2025, and ending June 30, 2026, each early childhood Iowa area 11 board shall submit a report to the department of health and 12 human services that includes a detailed monetary accounting of 13 the early childhood Iowa area board’s expenditures during the 14 preceding month. 15 -24- SF 445 (3) 91 jda/jh/mb 24/ 24