House File 914 - Introduced HOUSE FILE 914 BY BAGNIEWSKI , WICHTENDAHL , KRESSIG , B. MEYER , LEVIN , KURTH , JACOBY , GOSA , OLSON , BROWN-POWERS , SRINIVAS , EHLERT , R. JOHNSON , and MATSON A BILL FOR An Act relating to education, including by modifying provisions 1 related to the duties and powers of area education agencies, 2 the department of education, and area education agency 3 funding, and including effective date and applicability 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2425YH (4) 91 jda/jh
H.F. 914 DIVISION I 1 DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION 2 Section 1. Section 256.9, subsection 36, Code 2025, is 3 amended by striking the subsection. 4 Sec. 2. Section 256B.3, subsections 16, 17, 18, 19, 20, 21, 5 and 22, Code 2025, are amended by striking the subsections. 6 DIVISION II 7 AREA EDUCATION AGENCIES GENERAL PROVISIONS 8 Sec. 3. Section 273.2, subsections 1 and 3, Code 2025, are 9 amended to read as follows: 10 1. There are established throughout the state nine area 11 education agencies, each of which is under the general 12 supervision of the director of the department of education, 13 except as otherwise provided in this chapter governed by an 14 area education agency board of directors . Each area education 15 agency shall have an area education agency board of directors 16 that shall serve in an advisory capacity. The boundaries of an 17 area education agency shall not divide a school district. The 18 director of the department of education shall change boundaries 19 of area education agencies to take into account mergers of 20 local school districts and changes in boundaries of local 21 school districts, when necessary to maintain the policy of this 22 chapter that a local school district shall not be a part of 23 more than one area education agency. 24 3. a. The area education agency board shall furnish 25 educational services and programs as provided in section 273.1 , 26 this section , sections 273.3 through 273.8 , and chapter 256B 27 to pupils enrolled in public or nonpublic schools located 28 within its boundaries which are on the list of accredited 29 schools pursuant to section 256.11 , which request to receive 30 such services . The programs and services provided shall be 31 at least commensurate with programs and services existing on 32 July 1, 1974. The programs and services provided to pupils 33 enrolled in nonpublic schools shall be comparable to programs 34 and services provided to pupils enrolled in public schools 35 -1- LSB 2425YH (4) 91 jda/jh 1/ 23
H.F. 914 within constitutional guidelines. 1 b. The area education agency may furnish evidence-based 2 professional development services to public or nonpublic 3 schools which are on the list of accredited schools pursuant 4 to section 256.11 if any of the following requirements are 5 satisfied: 6 (1) The professional development service is included on the 7 list developed by the director of the department of education 8 pursuant to section 256.9, subsection 36 . 9 (2) The director of the department of education grants 10 approval to the area education agency to furnish the 11 evidence-based professional development services. 12 Sec. 4. Section 273.2, subsections 5 and 13, Code 2025, are 13 amended by striking the subsections. 14 Sec. 5. Section 273.3, subsections 1 and 12, Code 2025, are 15 amended to read as follows: 16 1. Advise and consult with Determine the policies of the 17 area education agency on policies and procedures for providing 18 programs and services. 19 12. Area education agencies shall prepare Prepare an annual 20 budget estimating income and expenditures for programs and 21 services as provided in sections 273.1 , 273.2 , this section , 22 sections 273.4 through 273.8 , and chapter 256B within the 23 limits of funds provided under section 256B.9 and chapter 257 . 24 The board shall submit the proposed budget to the director 25 of the department of education for approval not later than 26 March 1 of each year, and the director shall either approve or 27 reject the proposed budget for changes within ten days after 28 submission post notice of a public hearing on the proposed 29 budget on the area education agencys internet site and by 30 publication in the newspaper of general circulation in the 31 territory of the area education agency in which the principal 32 place of business of a school district that is part of the 33 area education agency is located. The notice shall specify 34 the date, which shall be not later than March 1 of each 35 -2- LSB 2425YH (4) 91 jda/jh 2/ 23
H.F. 914 year, the time, and the location of the public hearing . The 1 proposed budget as approved by the director of the department 2 of education board shall then be submitted to the state board 3 of education, on forms provided by the department, no later 4 than March 15 preceding the next fiscal year for approval. 5 The state board shall review the proposed budget of each 6 area education agency and shall before May 1, either grant 7 approval or return the budget without approval with comments 8 of the state board included. An unapproved budget shall be 9 resubmitted to the state board for final approval not later 10 than May 15. The state board shall give final approval only to 11 budgets submitted by area education agencies accredited by the 12 state board or that have been given conditional accreditation 13 by the state board. 14 Sec. 6. Section 273.3, subsection 26, Code 2025, is amended 15 by striking the subsection. 16 Sec. 7. Section 273.5, unnumbered paragraph 1, Code 2025, 17 is amended to read as follows: 18 There shall be established a division of special education 19 of the area education agency which shall provide for special 20 education programs and services to the local school districts. 21 The division of special education shall be headed by a director 22 of special education who meets certification standards of the 23 department of education. The director of special education 24 shall be an employee of the division of special education of 25 the department of education. The director of special education 26 shall not be an employee of the area education agency, shall 27 not receive compensation from the area education agency, shall 28 not supervise or manage employees of the area education agency, 29 and shall not directly provide special education services for 30 the agency. The director of special educations primary job 31 duties and responsibilities to the area education agency are 32 to provide oversight of the area education agencys special 33 education services. The director of special education shall 34 also have the responsibility for implementation of state 35 -3- LSB 2425YH (4) 91 jda/jh 3/ 23
H.F. 914 regulations and guidelines relating to special education 1 programs and services. The director of special education shall 2 have the following powers and duties: 3 Sec. 8. Section 273.11, Code 2025, is amended to read as 4 follows: 5 273.11 Standards for accrediting area education agency 6 programs. 7 1. The state board of education shall develop standards 8 and rules for the accreditation of area education agencies. 9 Standards shall be general in nature, but at a minimum shall 10 identify requirements addressing the services provided by each 11 division, as well as identifying indicators of quality that 12 will permit area education agencies, school districts, the 13 division of special education of the department of education, 14 and the general public to judge accurately the effectiveness of 15 area education agency services. 16 2. Standards developed shall include, but are not limited 17 to, the following: 18 a. Support for school-community planning, including a means 19 of assessing needs, developing collaborative relationships 20 among community agencies, establishing shared direction , and 21 implementing program plans and reporting progress toward goals 22 for all students, including students with disabilities . 23 b. Professional Evidence-based professional development 24 programs that respond to current needs. 25 c. Support for curriculum development, instruction, and 26 assessment for services that address the areas of reading, 27 language arts, math , and science, using research-based 28 methodologies , for all students, including students with 29 disabilities . 30 d. Special education compliance and support. 31 e. Management services, including financial reporting and 32 purchasing as requested and funded by local districts. 33 f. Support for instructional media services that supplement 34 and support local district media centers and services. 35 -4- LSB 2425YH (4) 91 jda/jh 4/ 23
H.F. 914 g. Support for school technology planning and staff 1 development for implementing instructional technologies. 2 h. A program and services evaluation and reporting system 3 that includes information related to special education . 4 i. Support for school district libraries in accordance with 5 section 273.2, subsection 4 . 6 j. Support for early childhood service coordination for 7 families and children , age birth through three years, to 8 meet health, safety, and learning needs , including service 9 coordination . 10 k. Timely submission of required reports and documents to 11 the state board of education, the department of education, 12 and the division of special education of the department of 13 education. 14 l. Support for schools and school districts in analyzing 15 student achievement data related to the learning environment, 16 comparing data to the external knowledge base, and using that 17 information to guide schools and school districts in setting 18 goals and implementing actions to improve student learning for 19 all students, including students with disabilities. 20 m. Support for addressing the diverse learning needs of 21 all children and youths, including children and youths who are 22 eligible for special education through services that include 23 direct services to students with disabilities. 24 n. Support for schools and school districts to ensure 25 compliance with rules adopted by the state board of education 26 related to special education. 27 o. Support necessary to implement effective instruction for 28 all students, including students with disabilities, through 29 school technology services. 30 p. Support for students using educational programs and 31 services in a manner that is consistent with the educational 32 standards established pursuant to section 256.11. 33 q. Support for staff development and adult learners 34 utilizing evidence-based professional development in a manner 35 -5- LSB 2425YH (4) 91 jda/jh 5/ 23
H.F. 914 that meets the professional needs of staff and adult learners 1 consistent with standards adopted by the state board of 2 education. 3 r. Compliance with all relevant federal and state laws 4 in the provision of services and supports to students with 5 disabilities. 6 Sec. 9. Section 284.6, subsection 10, Code 2025, is amended 7 to read as follows: 8 10. If funds are allocated for purposes of professional 9 development pursuant to section 284.13, subsection 1 , paragraph 10 c , the department shall , in collaboration with the area 11 education agencies, establish teacher development academies 12 for public and nonpublic school-based teams of teachers and 13 instructional leaders. Each academy shall include an institute 14 and shall provide follow-up training and coaching. 15 Sec. 10. REPEAL. 2024 Iowa Acts, chapter 1002, sections 13, 16 14, and 19, are repealed. 17 DIVISION III 18 AREA EDUCATION AGENCIES FUNDING 19 Sec. 11. Section 257.9, Code 2025, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 9A. Area education agency professional 22 development supplement state cost per pupil. For the budget 23 year beginning July 1, 2009, for the area education agency 24 professional development supplement state cost per pupil, the 25 department of management shall add together the professional 26 development allocation made to each area education agency for 27 the fiscal year beginning July 1, 2008, pursuant to section 28 284.13, subsection 1, paragraph d , Code 2009, and divide 29 that sum by the statewide special education support services 30 weighted enrollment for the fiscal year beginning July 1, 31 2009. The area education agency professional development 32 supplement state cost per pupil for the budget year beginning 33 July 1, 2010, and succeeding budget years, shall be the 34 amount calculated by the department of management under this 35 -6- LSB 2425YH (4) 91 jda/jh 6/ 23
H.F. 914 subsection for the base year plus a supplemental state aid 1 amount that is equal to the professional development supplement 2 categorical state percent of growth, pursuant to section 3 257.8, subsection 2, for the budget year, multiplied by the 4 amount calculated by the department of management under this 5 subsection for the base year. 6 Sec. 12. Section 257.10, subsection 7, Code 2025, is amended 7 to read as follows: 8 7. Special education support services district cost. Special 9 education support services district cost for a school district 10 for a budget year is equal to the special education support 11 services district cost per pupil for the budget year multiplied 12 by the special education support services weighted enrollment 13 for the district for the budget year. If the special education 14 support services district cost for a school district for 15 a budget year is less than the special education support 16 services district cost for that district for the base year, the 17 department of management shall adjust the special education 18 support services district cost for that district for the budget 19 year to equal the special education support services district 20 cost for the base year. Funds calculated under this subsection 21 and received by a school district shall be used for special 22 education support services. For budget years beginning on 23 or after July 1, 2025, not less than ninety percent of funds 24 calculated under this subsection and received by a school 25 district shall be used by the school district for special 26 education support services contracted from an area education 27 agency. The contract between the school district and the area 28 education agency shall not require the school district to 29 describe the specific special education support services the 30 school district will receive from the area education agency. 31 The special education services provided by the area education 32 agency to the school district pursuant to the contract shall 33 not be limited by the amount of funding the school district 34 provided to the area education agency. 35 -7- LSB 2425YH (4) 91 jda/jh 7/ 23
H.F. 914 Sec. 13. Section 257.16, subsection 4, Code 2025, is amended 1 to read as follows: 2 4. Notwithstanding any provision to the contrary, if 3 the governor orders budget reductions in accordance with 4 section 8.31 , the teacher salary supplement district cost, 5 the professional development supplement district cost, the 6 early intervention supplement district cost, and the teacher 7 leadership supplement district cost as calculated under section 8 257.10, subsections 9, 10, 11, and 12 , and the area education 9 agency teacher salary supplement district cost and the area 10 education agency professional development supplement district 11 cost as calculated under section 257.37A , subsections 1 and 2, 12 shall be paid in full as calculated and the reductions in the 13 appropriations provided in accordance with this section shall 14 be reduced from the remaining moneys appropriated pursuant 15 to this section and shall be distributed on a per pupil 16 basis calculated with the weighted enrollment determined in 17 accordance with section 257.6, subsection 5 . 18 Sec. 14. Section 257.35, subsection 1, paragraph a, 19 subparagraph (3), Code 2025, is amended by striking the 20 subparagraph and inserting in lieu thereof the following: 21 (3) For the fiscal year beginning July 1, 2025, and each 22 fiscal year thereafter, the department of management shall 23 deduct the amounts calculated for special education support 24 services, media services, area education agency teacher salary 25 supplement district cost, area education agency professional 26 development supplement district cost, and educational services 27 for each school district from the state aid due to the district 28 pursuant to this chapter and shall pay the amounts to the 29 respective area education agencies on a monthly basis from 30 September 15 through June 15 during each school year. The 31 department of management shall notify each school district 32 of the amount of state aid deducted for these purposes and 33 the balance of state aid shall be paid to the district. If 34 a district does not qualify for state aid under this chapter 35 -8- LSB 2425YH (4) 91 jda/jh 8/ 23
H.F. 914 in an amount sufficient to cover its amount due to the area 1 education agency as calculated by the department of management, 2 the school district shall pay the deficiency to the area 3 education agency from other moneys received by the district, on 4 a quarterly basis during each school year. 5 Sec. 15. Section 257.35, subsection 2, Code 2025, is amended 6 to read as follows: 7 2. Notwithstanding the deduction and payment under 8 subsection 1 , the amounts specified for school districts and 9 area education agencies in subsection 1 , paragraph a , for the 10 fiscal year beginning July 1, 2024, and each succeeding fiscal 11 year, shall be reduced by the department of management by seven 12 million five hundred thousand dollars. The department of 13 management shall calculate a reduction such that such amounts 14 shall be reduced proportionally to the amount that the district 15 or agency would otherwise have received under this section 16 if the reduction imposed pursuant to this subsection did not 17 apply. 18 Sec. 16. Section 257.35, subsection 17, paragraph b, Code 19 2025, is amended to read as follows: 20 b. Notwithstanding subsection 1 , and in addition to 21 the reductions applicable pursuant to subsection 2 and 22 paragraph a of this subsection , the state aid for area 23 education agencies and the portion of the combined district 24 cost calculated for these agencies related to professional 25 development expenditures for the fiscal year beginning July 26 1, 2022, and ending June 30, 2023, shall be reduced by the 27 department of management by an amount equal to the sum of the 28 area education agency professional development supplement 29 district cost for all area education agencies determined under 30 section 257.37A, subsection 2, Code 2022 , for the budget 31 year beginning July 1, 2022. The reduction for each area 32 education agency shall be equal to the area education agencys 33 professional development district cost determined under section 34 257.37A, subsection 2, Code 2022 , for the budget year beginning 35 -9- LSB 2425YH (4) 91 jda/jh 9/ 23
H.F. 914 July 1, 2022. The amounts reduced under this paragraph shall 1 be considered funds paid to school districts and area education 2 agencies under chapter 284 for purposes of requirements for 3 providing professional development opportunities. 4 Sec. 17. Section 257.36, subsection 1, Code 2025, is amended 5 to read as follows: 6 1. Notwithstanding chapters 256B and 273 and sections 7 of this chapter relating to the moneys available to school 8 districts and area education agencies for special education 9 support services, for each school year, the department of 10 education may direct the department of management to deduct 11 amounts from the portions of school district budgets that 12 fund special education support services in an area education 13 agency. The total amount deducted for a school district in 14 an area shall be based upon excess special education support 15 services unreserved and undesignated fund balances in that 16 school district or paid by the school district to an area 17 education agency for a school year that remain unreserved and 18 undesignated as determined by the department of education. The 19 department of management shall determine the amount deducted 20 from each school district in an area education agency on 21 a proportional basis. The department of management shall 22 determine from the amounts deducted from the portions of school 23 district budgets that fund area education agency special 24 education support services the amount that would have been 25 local property taxes and the amount that would have been state 26 aid and for the next following budget year shall increase the 27 districts total state school aid available under this chapter 28 for area education agency special education support services 29 and reduce the districts property tax levy for area education 30 agency special education support services by the amount 31 necessary for the property tax portion of the deductions made 32 under this section during the budget year. 33 Sec. 18. Section 257.37, Code 2025, is amended to read as 34 follows: 35 -10- LSB 2425YH (4) 91 jda/jh 10/ 23
H.F. 914 257.37 Funding media and educational services. 1 Media services and educational services provided by a school 2 district or through the area education agency agencies shall be 3 funded, to the extent provided, by an addition to the combined 4 district cost of each school district, determined as follows: 5 1. For the budget year beginning July 1, 1991, and 6 succeeding budget years, the total amount funded in each area 7 for media services shall be computed as provided in this 8 subsection . For the budget year beginning July 1, 1991, the 9 total amount funded in each area for media services in the 10 base year shall be divided by the enrollment served in the 11 base year to provide an area media services cost per pupil in 12 the base year, and the department of management shall compute 13 the state media services cost per pupil in the base year which 14 is equal to the average of the area media services costs per 15 pupil in the base year. For the budget year beginning July 1, 16 1991, and succeeding budget years, the department of management 17 shall compute the supplemental state aid for media services 18 in the budget year by multiplying the state media services 19 cost per pupil in the base year times the state percent of 20 growth for the budget year, and the total amount funded in each 21 area for media services cost in the budget year equals the 22 area media services cost per pupil in the base year plus the 23 supplemental state aid for media services in the budget year 24 times the enrollment served in the budget year. For fiscal 25 years beginning before July 1, 2025, funds Funds shall be paid 26 to area education agencies as provided in section 257.35 . For 27 fiscal years beginning on or after July 1, 2024, funds not 28 required to be paid to an area education agency may be used 29 by the school district for any school district general fund 30 purpose. 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 -11- LSB 2425YH (4) 91 jda/jh 11/ 23
H.F. 914 agencies as provided in section 257.35. 1 3. For the budget year beginning July 1, 1991, and 2 succeeding budget years, the total amount funded in each area 3 for educational services shall be computed as provided in this 4 subsection . For the budget year beginning July 1, 1991, the 5 total amount funded in each area for educational services 6 in the base year shall be divided by the enrollment served 7 in the area in the base year to provide an area educational 8 services cost per pupil in the base year, and the department of 9 management shall compute the state educational services cost 10 per pupil in the base year, which is equal to the average of 11 the area educational services costs per pupil in the base year. 12 For the budget year beginning July 1, 1991, and succeeding 13 budget years, the department of management shall compute the 14 supplemental state aid for educational services by multiplying 15 the state educational services cost per pupil in the base year 16 times the state percent of growth for the budget year, and the 17 total amount funded in each area for educational services for 18 the budget year equals the area educational services cost per 19 pupil for the base year plus the supplemental state aid for 20 educational services in the budget year times the enrollment 21 served in the area in the budget year. For fiscal years 22 beginning before July 1, 2025, funds Funds shall be paid to 23 area education agencies as provided in section 257.35 . For 24 fiscal years beginning on or after July 1, 2024, funds not 25 required to be paid to an area education agency may be used 26 by the school district for any school district general fund 27 purpose. 28 4. Enrollment served means the basic enrollment of all 29 school districts within the boundaries of the area education 30 agency plus the number of nonpublic school pupils served by 31 the area education agency with media services or educational 32 services, as applicable, except that if a nonpublic school 33 pupil or a pupil attending another district under a whole grade 34 sharing agreement or open enrollment receives services through 35 -12- LSB 2425YH (4) 91 jda/jh 12/ 23
H.F. 914 an area other than the area of the pupils residence, the 1 pupil shall be deemed to be served by the area of the pupils 2 residence, which shall by contractual arrangement reimburse 3 the area through which the pupil actually receives services. 4 Each school district shall include in the enrollment report 5 submitted pursuant to section 257.6, subsection 1 , the number 6 of nonpublic school pupils within each school district for 7 media and educational services served by the area. However, 8 the school district shall not include in the enrollment report 9 nonpublic school pupils receiving classes or services funded 10 entirely by federal grants or allocations. 11 5. a. If an area education agency does not serve nonpublic 12 school pupils in a manner comparable to services provided 13 public school pupils for media and educational services, as 14 determined by the state board of education, the state board 15 shall instruct the department of management to reduce the funds 16 for media services and educational services within the area one 17 time by an amount to compensate for such reduced services. The 18 media services budget shall be reduced by an amount equal to 19 the product of the cost per pupil in basic enrollment for the 20 budget year for media services times the difference between 21 the enrollment served and the basic enrollment recorded for 22 the area. The educational services budget shall be reduced by 23 an amount equal to the product of the cost per pupil in basic 24 enrollment for the budget year for educational services times 25 the difference between the enrollment served and the basic 26 enrollment recorded for the area. 27 b. This subsection applies only to media and educational 28 services which cannot be diverted for religious purposes. 29 c. Notwithstanding this subsection , an area education agency 30 shall distribute to nonpublic schools media materials purchased 31 wholly or partially with federal funds in a manner comparable 32 to the distribution of such media materials to public schools 33 as determined by the director of the department of education. 34 6. For the budget year beginning July 1, 2002, and each 35 -13- LSB 2425YH (4) 91 jda/jh 13/ 23
H.F. 914 succeeding budget year, notwithstanding the requirements of 1 this section for determining the budgets and funding of media 2 services and education services, an area education agency or 3 school district may , within the limits of the total of the 4 funds provided for the budget years pursuant to section 257.35, 5 expend for special education support services an amount that 6 exceeds the payment for special education support services 7 pursuant to section 257.35 in order to maintain the level 8 of required special education support services in the area 9 education agency or the school district, as applicable . 10 Sec. 19. Section 257.37A, Code 2025, is amended to read as 11 follows: 12 257.37A Area education agency salary supplement funding. 13 1. Area education agency teacher salary supplement cost per 14 pupil and district cost. 15 1. a. For the budget year beginning July 1, 2009, the 16 department of management shall add together the teacher 17 compensation allocation made to each area education agency for 18 the fiscal year beginning July 1, 2008, pursuant to section 19 284.13, subsection 1 , paragraph i , Code 2009, and the phase II 20 allocation made to each area education agency for the fiscal 21 year beginning July 1, 2008, pursuant to section 294A.9, Code 22 2009 , and divide that sum by the special education support 23 services weighted enrollment in the fiscal year beginning July 24 1, 2009, to determine the area education agency teacher salary 25 supplement cost per pupil. For the budget year beginning July 26 1, 2010, and succeeding budget years, the area education agency 27 teacher salary supplement district cost per pupil for each area 28 education agency for a budget year is the area education agency 29 teacher salary supplement district cost per pupil for the base 30 year plus the area education agency teacher salary supplement 31 supplemental state aid amount for the budget year. 32 2. b. For the budget year beginning July 1, 2010, and 33 succeeding budget years, if the department of management 34 determines that the unadjusted area education agency teacher 35 -14- LSB 2425YH (4) 91 jda/jh 14/ 23
H.F. 914 salary supplement district cost of an area education agency 1 for a budget year is less than one hundred percent of the 2 unadjusted area education agency teacher salary supplement 3 district cost for the base year for the area education agency, 4 the area education agency shall receive a budget adjustment for 5 that budget year equal to the difference. 6 3. a. c. (1) The unadjusted area education agency teacher 7 salary supplement district cost is the area education agency 8 teacher salary supplement district cost per pupil for each area 9 education agency for a budget year multiplied by the special 10 education support services weighted enrollment for that area 11 education agency. 12 b. (2) The total area education agency teacher salary 13 supplement district cost is the sum of the unadjusted area 14 education agency teacher salary supplement district cost plus 15 the budget adjustment for that budget year. 16 4. d. For the budget year beginning July 1, 2009, the 17 use of the funds calculated under this section subsection 18 shall comply with requirements of chapter 284 and shall be 19 distributed to teachers pursuant to section 284.3A . For the 20 budget year beginning July 1, 2010, and succeeding budget 21 years, the use of the funds calculated under this section 22 subsection shall comply with the requirements of chapter 284 23 and shall be distributed to teachers pursuant to section 24 284.3A . 25 2. Area education agency professional development supplement 26 cost per pupil and district cost. 27 a. For the budget year beginning July 1, 2009, the 28 department of management shall divide the area education 29 agency professional development supplement made to each 30 area education agency for the fiscal year beginning July 1, 31 2008, pursuant to section 284.13, subsection 1, paragraph 32 d , Code 2009, by the special education support services 33 weighted enrollment in the fiscal year beginning July 1, 2009, 34 to determine the professional development supplement cost 35 -15- LSB 2425YH (4) 91 jda/jh 15/ 23
H.F. 914 per pupil. For the budget year beginning July 1, 2010, and 1 succeeding budget years, the area education agency professional 2 development supplement district cost per pupil for each area 3 education agency for a budget year is the area education agency 4 professional development supplement district cost per pupil 5 for the base year plus the area education agency professional 6 amount for the budget year. 7 b. For the budget year beginning July 1, 2010, and 8 succeeding budget years, if the department of management 9 determines that the unadjusted area education agency 10 professional development supplement district cost of an area 11 education agency for a budget year is less than one hundred 12 percent of the unadjusted area education agency professional 13 development supplement district cost for the base year for 14 the area education agency, the area education agency shall 15 receive a budget adjustment for that budget year equal to the 16 difference. 17 c. (1) The unadjusted area education agency professional 18 development supplement district cost is the area education 19 agency professional development supplement district cost 20 per pupil for each area education agency for a budget year 21 multiplied by the special education support services weighted 22 enrollment for that area education agency. 23 (2) The total area education agency professional 24 development supplement district cost is the sum of the 25 unadjusted area education agency professional development 26 supplement district cost plus the budget adjustment for that 27 budget year. 28 d. The use of the funds calculated under this subsection 29 shall comply with the requirements of chapter 284. 30 Sec. 20. Section 284.3A, subsection 4, Code 2025, is amended 31 to read as follows: 32 4. The teacher salary supplement district cost as 33 calculated under section 257.10, subsection 9 , and the area 34 education agency teacher salary supplement district cost as 35 -16- LSB 2425YH (4) 91 jda/jh 16/ 23
H.F. 914 calculated under section 257.37A , subsection 1, are not subject 1 to a uniform reduction in accordance with section 8.31 . 2 Sec. 21. Section 284.4, subsection 1, paragraph b, 3 subparagraph (3), Code 2025, is amended to read as follows: 4 (3) Determine, following the adoption of the Iowa 5 professional development model by the state board of education, 6 the use and distribution of the professional development 7 funds calculated and paid to the school district or agency as 8 provided in section 257.9, subsection 9A, or section 257.10, 9 subsection 10 , based upon school district or agency , attendance 10 center, and individual teacher and professional development 11 plans. 12 Sec. 22. Section 284.6, subsections 8 and 9, Code 2025, are 13 amended to read as follows: 14 8. For each year in which a school district receives funds 15 calculated and paid to school districts for professional 16 development pursuant to section 257.10, subsection 10 , or 17 section 257.37A, subsection 2, the school district shall create 18 quality professional development opportunities. Not less than 19 thirty-six hours in the school calendar, held outside of the 20 minimum school day, shall be set aside during nonpreparation 21 time or designated professional development time to allow 22 practitioners to collaborate with each other to deliver 23 educational programs and assess student learning, or to engage 24 in peer review pursuant to section 284.8, subsection 1 . The 25 funds may be used to implement the professional development 26 provisions of the teacher career paths and leadership roles 27 specified in section 284.15 , including but not limited to 28 providing professional development to teachers, including 29 additional salaries for time beyond the normal negotiated 30 agreement; activities and pay to support a beginning teacher 31 mentoring and induction program that meets the requirements 32 of section 284.5 ; pay for substitute teachers, professional 33 development materials, speakers, and professional development 34 content; textbooks and curriculum materials used for classroom 35 -17- LSB 2425YH (4) 91 jda/jh 17/ 23
H.F. 914 purposes if such textbooks and curriculum materials include 1 professional development; administering assessments pursuant to 2 section 256.7, subsection 21 , paragraph b , subparagraphs (1) 3 and (2), if such assessments include professional development; 4 and costs associated with implementing the individual 5 professional development plans. The use of the funds shall 6 be balanced between school district, attendance center, 7 and individual professional development plans, making every 8 reasonable effort to provide equal access to all teachers. 9 9. Moneys received pursuant to section 257.10, subsection 10 10 , or section 257.37A, subsection 2, shall be maintained 11 as a separate listing within a school districts or area 12 education agencys budget for funds received and expenditures 13 made pursuant to this subsection . The department shall not 14 require a school district or area education agency to allocate 15 a specific amount or percentage of moneys received pursuant to 16 section 257.10, subsection 10 , or section 257.37A, subsection 17 2, for professional development related to implementation of 18 the core curriculum under section 256.7, subsection 26 . A 19 school district shall certify to the department how the school 20 district allocated the funds and that moneys received under 21 this subsection were used to supplement, not supplant, the 22 professional development opportunities the school district 23 would otherwise make available. For budget years beginning 24 on or after July 1, 2017, all or a portion of the moneys 25 received pursuant to section 257.10, subsection 10 , that remain 26 unexpended and unobligated at the end of a fiscal year may, 27 pursuant to section 257.10, subsection 10 , paragraph d , be 28 transferred for deposit in the school districts flexibility 29 account established under section 298A.2, subsection 2 . 30 Sec. 23. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 Sec. 24. APPLICABILITY. This division of this Act applies 33 July 1, 2025, for school budget years beginning on or after 34 that date. 35 -18- LSB 2425YH (4) 91 jda/jh 18/ 23
H.F. 914 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanations substance by the members of the general assembly. 3 This bill relates to education, including by modifying 4 provisions related to the duties and powers of area education 5 agencies, the department of education, and area education 6 agency funding. 7 DIVISION I DIVISION OF SPECIAL EDUCATION OF THE 8 DEPARTMENT OF EDUCATION. Current law requires the director of 9 the department of education to develop and distribute to school 10 districts, accredited nonpublic schools, and area education 11 agencies a list of evidence-based professional development 12 services that an area education agency may provide to a public 13 school or accredited nonpublic school. The bill strikes these 14 provisions. 15 Current law requires the division of special education 16 within the department of education to oversee the operation of 17 each area education agency to ensure the area education agency 18 complies with all applicable federal and state laws related to 19 special education; develop and distribute to school districts 20 and accredited nonpublic schools a process to facilitate 21 the development of individualized education programs and 22 assist individualized education program teams with decisions 23 regarding free appropriate public education and placement for 24 students enrolled in accredited nonpublic schools; provide 25 professional learning and other support materials and tools for 26 individualized education program teams; provide information 27 to individualized education program teams and public agencies 28 that nonpublic schools shall be considered a placement option 29 so long as the individualized education program of a child 30 with a disability does not require some other arrangement; 31 develop and distribute to school districts professional 32 learning and other materials for meaningful consultation for 33 representatives of area education agencies, school districts, 34 and accredited nonpublic schools; establish sustainable 35 -19- LSB 2425YH (4) 91 jda/jh 19/ 23
H.F. 914 accountability and data collection systems related to special 1 education; and develop and distribute to school districts and 2 accredited nonpublic schools an implementation plan related 3 to identifying, evaluating, and promoting strategies and 4 models for providing special education and related services 5 with accredited nonpublic schools. The bill strikes these 6 provisions. 7 DIVISION II AREA EDUCATION AGENCIES GENERAL 8 PROVISIONS. Current law provides that each area education 9 agency is under the general supervision of the director of the 10 department of education and that the area education agency 11 board of directors serves in an advisory capacity. The bill 12 provides that each area education agency is governed by a board 13 of directors. The bill makes conforming changes. 14 The bill modifies provisions related to students that 15 an area education agency may provide services to. Current 16 law provides that an area education agency may furnish 17 evidence-based professional development services to public or 18 nonpublic schools which are on the list of accredited schools 19 if certain specified requirements are satisfied. The bill 20 strikes this provision. 21 Current law requires area education agencies to prepare a 22 proposed annual budget and submit the proposed budget to the 23 director of the department of education for approval not later 24 than March 1 of each year. Under current law, the director is 25 required to either approve or reject the proposed budget for 26 changes within 10 days after submission. The bill modifies 27 this provision to require area education agencies to prepare 28 a proposed annual budget and post notice of a public hearing 29 on the proposed budget on the area education agencys internet 30 site and by publication in the newspaper of general circulation 31 in the territory of the area education agency in which the 32 principal place of business of a school district that is part 33 of the area education agency is located. The notice shall 34 specify the date, which shall be not later than March 1 of each 35 -20- LSB 2425YH (4) 91 jda/jh 20/ 23
H.F. 914 year, the time, and the location of the public hearing. 1 Current law requires an area education agency to, on a 2 quarterly basis, prepare and submit to each school district 3 that receives services from the area education agency a report 4 that includes certain specified financial and programmatic 5 information. The bill strikes this provision. 6 Current law requires that the director of special education 7 within each area education agency be an employee of the 8 division of special education of the department of education 9 and not be an employee of the area education agency, receive 10 compensation from the area education agency, supervise or 11 manage employees of the area education agency, or directly 12 provide special education services for the agency. Current law 13 also provides that the director of special educations primary 14 job duties and responsibilities to the area education agency 15 are to provide oversight of the area education agencys special 16 education services. The bill strikes these provisions. 17 The bill modifies provisions related to the standards used 18 by the state board of education for the accreditation of area 19 education agencies. 20 The bill repeals certain specified provisions of 2024 Iowa 21 Acts, chapter 1002, related to the accreditation of area 22 education programs that were to take effect July 1, 2025. 23 DIVISION III AREA EDUCATION AGENCIES FUNDING. The 24 bill modifies provisions related to the calculation of the area 25 education agency professional development supplement state cost 26 per pupil. 27 Current law provides that funds calculated under Code 28 section 257.10(7) (special education support services district 29 cost) and received by a school district are required to be 30 used for special education support services. Current law 31 also provides that for budget years beginning on or after 32 July 1, 2025, not less than 90 percent of funds calculated 33 under Code section 257.10(7) and received by a school district 34 are required to be used by the school district for special 35 -21- LSB 2425YH (4) 91 jda/jh 21/ 23
H.F. 914 education support services contracted from an area education 1 agency. The contract between the school district and the area 2 education agency shall not require the school district to 3 describe the specific special education support services the 4 school district will receive from the area education agency. 5 The special education services provided by the area education 6 agency to the school district pursuant to the contract shall 7 not be limited by the amount of funding the school district 8 provided to the area education agency. The bill strikes these 9 provisions. 10 The bill provides that for the fiscal year beginning July 11 1, 2025, and each fiscal year thereafter, the department of 12 management is required to deduct the amounts calculated for 13 special education support services, media services, area 14 education agency teacher salary supplement district cost, area 15 education agency professional development supplement district 16 costs, and educational services for each school district from 17 the state aid due to the district pursuant to Code chapter 18 257 and pay the amounts to the respective area education 19 agencies on a monthly basis from September 15 through June 15 20 during each school year. The bill requires the department of 21 management to notify each school district of the amount of 22 state aid deducted for these purposes and the balance of state 23 aid is required to be paid to the district. If a district 24 does not qualify for state aid under Code chapter 257 in an 25 amount sufficient to cover its amount due to the area education 26 agency as calculated by the department of management, the 27 school district is required to pay the deficiency to the area 28 education agency from other moneys received by the district, on 29 a quarterly basis during each school year. 30 Current law provides that, notwithstanding the deduction and 31 payment called for under Code section 257.35(1), the amounts 32 specified for school districts and area education agencies in 33 Code section 257.35(1)(a) for the fiscal year beginning July 1, 34 2024, and each succeeding fiscal year, shall be reduced by the 35 -22- LSB 2425YH (4) 91 jda/jh 22/ 23
H.F. 914 department of management by $7.5 million. The bill provides 1 that this reduction does not apply to fiscal years after the 2 fiscal year beginning July 1, 2024. 3 The bill modifies provisions related to moneys available 4 to school districts and area education agencies for special 5 education support services and the funding and provisions 6 related to the media and educational services provided by 7 school districts or through area education agencies, including 8 by modifying Code section 257.37 (funding media and educational 9 services) to strike a provision that state funds that are not 10 required to be paid to an area education agency may be used 11 by the school district for any school district general fund 12 purpose and by modifying the definition of enrollment served 13 in Code section 257.37. 14 The bill modifies Code section 257.37A (area education 15 agency salary supplement funding), including by providing that, 16 if the department of management determines that the unadjusted 17 area education agency professional development supplement 18 district cost of an area education agency for a budget year is 19 less than 100 percent of the unadjusted area education agency 20 professional development supplement district cost for the base 21 year for the area education agency, the area education agency 22 shall receive a budget adjustment for that budget year equal 23 to the difference. 24 The division takes effect upon enactment and applies July 1, 25 2025, for school budget years beginning on or after that date. 26 -23- LSB 2425YH (4) 91 jda/jh 23/ 23