Bill Text: IA HF2612 | 2023-2024 | 90th General Assembly | Enrolled

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Bill Title: A bill for an act relating to education, including modifying provisions related to the duties and powers of area education agencies, the membership of the boards of directors of area education agencies, the department of education, area education agency funding, the calculation of the teacher salary supplement district cost per pupil and minimum teacher salaries, Iowa public employees' retirement system bona fide retirement requirements, and property tax replacement payments, establishing the state percent of growth and the categorical state percent of growth for supplemental state aid calculations for the budget year beginning July 1, 2024, and including transition, effective date, and applicability provisions. (Formerly HSB 713.) Effective date: 03/27/2024, 07/01/2024, 07/01/2025. Applicability date: 07/01/2024, 07/01/2025.

Spectrum: Committee Bill

Status: (Passed) 2024-05-10 - Fiscal note. [HF2612 Detail]

Download: Iowa-2023-HF2612-Enrolled.html

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House File 2612 - Enrolled
House File 2612
AN ACT
RELATING TO EDUCATION, INCLUDING MODIFYING PROVISIONS RELATED
TO THE DUTIES AND POWERS OF AREA EDUCATION AGENCIES, THE
MEMBERSHIP OF THE BOARDS OF DIRECTORS OF AREA EDUCATION
AGENCIES, THE DEPARTMENT OF EDUCATION, AREA EDUCATION
AGENCY FUNDING, THE CALCULATION OF THE TEACHER SALARY
SUPPLEMENT DISTRICT COST PER PUPIL AND MINIMUM TEACHER
SALARIES, IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM BONA
FIDE RETIREMENT REQUIREMENTS, AND PROPERTY TAX REPLACEMENT
PAYMENTS, ESTABLISHING THE STATE PERCENT OF GROWTH AND THE
CATEGORICAL STATE PERCENT OF GROWTH FOR SUPPLEMENTAL STATE
AID CALCULATIONS FOR THE BUDGET YEAR BEGINNING JULY 1, 2024,
AND INCLUDING TRANSITION, EFFECTIVE DATE, AND APPLICABILITY
PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION
Section 1. Section 256.9, Code 2024, is amended by adding
the following new subsection:
NEW SUBSECTION . 36. Develop and distribute to school
districts, accredited nonpublic schools, and area education
agencies a list of evidence-based professional development
services that an area education agency may provide to a public
school or accredited nonpublic school pursuant to section
273.2, subsection 3, paragraph “b” .

House File 2612, p. 2
Sec. 2. Section 256B.3, Code 2024, is amended by adding the
following new subsections:
NEW SUBSECTION . 15A. Beginning July 1, 2024, oversee the
operation of each area education agency to ensure the area
education agency complies with all applicable federal and state
laws related to special education.
NEW SUBSECTION . 15B. Develop and distribute to school
districts and accredited nonpublic schools a process to
facilitate the development of individualized education
programs and assist individualized education program teams
with decisions regarding free appropriate public education
and placement for students enrolled in accredited nonpublic
schools.
NEW SUBSECTION . 15C. Provide professional learning and
other support materials and tools for individualized education
program teams, including students, families, teacher service
providers, and administrators of both school districts
and accredited nonpublic schools to help such individuals
understand the processes required under the federal law that
are relevant to students enrolled in accredited nonpublic
schools and to promote informed participation in individualized
education program meetings of students enrolled in accredited
nonpublic schools.
NEW SUBSECTION . 15D. Provide information to individualized
education program teams and public agencies that nonpublic
schools shall be considered a placement option so long as the
individualized education program of a child with a disability
does not require some other arrangement.
NEW SUBSECTION . 15E. Develop and distribute to school
districts professional learning and other materials for
meaningful consultation for representatives of area education
agencies, school districts, and accredited nonpublic schools.
NEW SUBSECTION . 15F. Establish sustainable accountability
and data collection systems related to special education
that meet federal and state legal requirements and encourage
innovative models for meeting the needs of students.
NEW SUBSECTION . 15G. Develop and distribute to school
districts and accredited nonpublic schools an implementation
plan related to identifying, evaluating, and promoting

House File 2612, p. 3
strategies and models for providing special education and
related services with accredited nonpublic schools that improve
the experiences and outcomes for students with disabilities.
Sec. 3. DIVISION OF SPECIAL EDUCATION —— EMPLOYEES. From
July 1, 2024, to June 30, 2025, the division of special
education of the department of education shall do all of the
following:
1. Devote at least thirteen full-time equivalent positions
within the department of education’s location in the city
of Des Moines to oversight of the area education agencies,
including the accreditation of area education agencies under
section 273.10.
a. At least one of the full-time equivalent positions shall
be an administrator.
b. At least one of the full-time equivalent positions shall
be a bureau chief of special education.
c. At least one of the full-time equivalent positions shall
be a liaison for accredited nonpublic schools.
d. At least one of the full-time equivalent positions shall
be an employee whose primary job duties relate to the child
find process for special education.
e. At least one of the full-time equivalent positions
shall be an employee whose primary job duties relate to best
practices concerning the development and implementation of
individualized education programs.
f. At least five of the full-time equivalent positions shall
be devoted to the accreditation of area education agencies.
2. Within each area education agency, devote an amount of
full-time equivalent positions, as determined by the division
of special education of the department of education but not to
exceed forty full-time equivalent positions in the aggregate,
that is commensurate with the number of students enrolled in
school districts located within the area education agency,
to ensure that the area education agency complies with all
applicable federal and state laws related to special education
and to review the services the area education agency provides.
DIVISION II
AREA EDUCATION AGENCIES —— GENERAL PROVISIONS
Sec. 4. Section 273.1, Code 2024, is amended to read as

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follows:
273.1 Intent.
It is the intent of the general assembly to provide an
effective, efficient, and economical means of identifying and
serving children from under five years of age through grade
twelve who require special education and any other children
requiring special education as defined in section 256B.2 ; to
provide for media services and other programs and services
for pupils in grades kindergarten through twelve and children
requiring special education as defined in section 256B.2 ; to
provide a method of financing the programs and services; and
to avoid a duplication of programs and services provided by
any other school corporation in the state; and to provide
services to school districts under a contract with those school
districts ; to improve student achievement; and to close student
achievement gaps .
Sec. 5. Section 273.2, subsections 1, 3, and 4, Code 2024,
are amended to read as follows:
1. There are established throughout the state fifteen
nine area education agencies, each of which is governed by an
area education agency board of directors under the general
supervision of the director of the department of education,
except as otherwise provided in this chapter . Each area
education agency shall have an area education agency board
of directors that shall serve in an advisory capacity. The
boundaries of an area education agency shall not divide a
school district. The director of the department of education
shall change boundaries of area education agencies to take
into account mergers of local school districts and changes
in boundaries of local school districts, when necessary
to maintain the policy of this chapter that a local school
district shall not be a part of more than one area education
agency.
3. a. The area education agency board shall furnish
educational services and programs as provided in section 273.1 ,
this section , sections 273.3 through 273.8 , and chapter 256B
to the pupils enrolled in public or nonpublic schools located
within its boundaries which are on the list of accredited
schools pursuant to section 256.11 , which request to receive

House File 2612, p. 5
such services . The programs and services provided shall be
at least commensurate with programs and services existing on
July 1, 1974. The programs and services provided to pupils
enrolled in nonpublic schools shall be comparable to programs
and services provided to pupils enrolled in public schools
within constitutional guidelines.
b. The area education agency may furnish evidence-based
professional development services to public or nonpublic
schools which are on the list of accredited schools pursuant
to section 256.11 if any of the following requirements are
satisfied:
(1) The professional development service is included on the
list developed by the director of the department of education
pursuant to section 256.9, subsection 36.
(2) The director of the department of education grants
approval to the area education agency to furnish the
evidence-based professional development services.
4. The area education agency board shall provide for special
education services and media services for the local school
districts in the area and shall encourage and assist school
districts in the area to establish programs for gifted and
talented children. The board area education agency shall
assist in facilitating interlibrary loans of materials between
school districts and other libraries.
Sec. 6. Section 273.2, Code 2024, is amended by adding the
following new subsections:
NEW SUBSECTION . 4A. a. The area education agency may
furnish services under subsection 3 or 4 to public or nonpublic
schools located within its boundaries, or within the boundaries
of a contiguous area education agency, which are on the list of
accredited schools pursuant to section 256.11.
b. Notwithstanding paragraph “a” , the area education agency
may furnish services under subsection 3 or 4 to a public
school located within the boundaries of an area education
agency that is not contiguous if the school district shares
a superintendent with another school district, pursuant to
section 257.11, subsection 5, that receives services from the
area education agency pursuant to paragraph “a” .
NEW SUBSECTION . 12. The area education agency shall

House File 2612, p. 6
charge reasonable costs that are consistent with current
market rates for the educational services, special education
services, professional development services, and media services
established by the area education agency.
NEW SUBSECTION . 13. The area education agency shall provide
an annual report by January 1 of each year to the department of
education, and to public schools and nonpublic schools located
within the area education agency’s boundaries which are on
the list of accredited schools pursuant to section 256.11,
a detailed description of the educational services, special
education programs and services, professional development
services, and media services that the area education agency
provides, and the cost associated with purchasing such programs
and services from the area education agency.
Sec. 7. Section 273.3, Code 2024, is amended to read as
follows:
273.3 Duties and powers of area education agency board ——
additional powers of area education agencies .
The board in carrying out the provisions of section 273.2
shall:
1. Determine the policies of Advise and consult with the
area education agency on policies and procedures for providing
programs and services.
2. Be authorized to receive and expend money for providing
programs and services as provided in sections 273.1 , 273.2 ,
this section , sections 273.4 through 273.8 , and chapters 256B
and 257 . All costs incurred in providing the programs and
services, including administrative costs, shall be paid from
funds received pursuant to sections 273.1 , 273.2 , this section ,
sections 273.4 through 273.8 , and chapters 256B and 257 .
3. Provide data and prepare reports as directed by the
director of the department of education.
4. Provide for advisory committees as deemed necessary.
5. Be Area education agencies are authorized, subject to
rules of the state board of education, to provide directly or
by contractual arrangement with public or private agencies
for special education programs and services, media services,
and educational programs and services requested by the local
boards of education as provided in this chapter , including

House File 2612, p. 7
but not limited to contracts for the area education agency to
provide programs or services to the local school districts
and contracts for local school districts, other educational
agencies, and public and private agencies to provide programs
and services to the local school districts in the area
education agency in lieu of the area education agency providing
the services. Contracts may be made with public or private
agencies located outside the state if the programs and services
comply with the rules of the state board. Rules adopted by
the state board of education shall be consistent with rules,
adopted by the board of educational examiners, relating to
licensing of practitioners.
6. Area education agencies may cooperate and contract
between themselves and with other public agencies to provide
special education programs and services, media services, and
educational services to schools and children residing within
their respective areas. Area education agencies may provide
print and nonprint materials to public and private colleges and
universities that have teacher education programs approved by
the state board of education.
7. Be Area education agencies are authorized to lease,
purchase, or lease-purchase, subject to the approval of the
state board of education or its designee and to receive by gift
and operate and maintain facilities and buildings necessary to
provide authorized programs and services. However, a lease
for less than ten years and with an annual cost of less than
the amount stated in section 26.3, subsection 1 , does not
require the approval of the state board. The state board shall
not approve a lease, purchase, or lease-purchase until the
state board is satisfied by investigation that public school
corporations within the area do not have suitable facilities
available. A purchase of property that is not a lease-purchase
may be made only within two years of a disaster as defined in
section 29C.2, subsection 4 , and subject to the requirements
of this subsection .
8. Be Area education agencies are authorized, subject to
the approval of the director of the department of education,
to enter into agreements for the joint use of personnel,
buildings, facilities, supplies, and equipment with school

House File 2612, p. 8
corporations as deemed necessary to provide authorized programs
and services.
9. Be Area education agencies are authorized to make
application for, accept, and expend state and federal funds
that are available for programs of educational benefit
approved by the director of the department of education,
and cooperate with the department in the manner provided in
federal-state plans or department rules in the effectuation
and administration of programs approved by the director, or
approved by other educational agencies, which agencies have
been approved as state educational authorities.
10. Be authorized to perform all other acts necessary to
carry out the provisions and intent of this chapter .
11. Employ personnel to carry out the functions of the
area education agency which shall include the employment of
an administrator who shall possess a license issued under
chapter 256, subchapter VII, part 3 . The administrator shall
be employed pursuant to section 279.20 and sections 279.23 ,
279.24 , and 279.25 . The salary for an area education agency
administrator shall be established by the board based upon
the previous experience and education of the administrator ;
provided, however, that the salary for an area education
agency administrator shall not exceed one hundred twenty-five
percent of the average salary of all superintendents of the
school districts that are located within the boundaries of the
area education agency at the time the employment agreement is
entered into or renewed between an area education agency and an
area education agency administrator . Section 279.13 applies to
the area education agency board and to all teachers employed by
the area education agency. Sections 279.23 , 279.24 , and 279.25
apply to the area education board and to all administrators
employed by the area education agency. Section 279.69 applies
to the area education agency board and employees of the board,
including part-time, substitute, or contract employees, who
provide services to a school or school district.
12. Prepare Area education agencies shall prepare an annual
budget estimating income and expenditures for programs and
services as provided in sections 273.1 , 273.2 , this section ,
sections 273.4 through 273.8 , and chapter 256B within the

House File 2612, p. 9
limits of funds provided under section 256B.9 and chapter
257 . The board shall post notice of a public hearing on the
proposed budget on the area education agency’s internet site
and by publication in the newspaper of general circulation
in the territory of the area education agency in which the
principal place of business of a school district that is a part
of the area education agency is located. The notice shall
specify the date, which shall be not later than March 1 of
each year, the time, and the location of the public hearing
submit the proposed budget to the director of the department
of education for approval not later than March 1 of each year,
and the director shall either approve or reject the proposed
budget for changes within ten days after submission . The
proposed budget as approved by the board director of the
department of education shall then be submitted to the state
board of education, on forms provided by the department,
no later than March 15 preceding the next fiscal year for
approval. The state board shall review the proposed budget of
each area education agency and shall before May 1, either grant
approval or return the budget without approval with comments
of the state board included. An unapproved budget shall be
resubmitted to the state board for final approval not later
than May 15. The state board shall give final approval only to
budgets submitted by area education agencies accredited by the
state board or that have been given conditional accreditation
by the state board.
13. Be authorized to pay, out of funds available to the
board reasonable annual dues to an Iowa association of school
boards. Membership shall be limited to those duly elected
members of the area education agency board.
14. a. The board may establish a plan, in accordance with
section 403(b) of the Internal Revenue Code, as defined in
section 422.3 , for employees, which plan shall consist of one
or more investment contracts, on a group or individual basis,
acquired from a company, or a salesperson for that company,
that is authorized to do business in this state.
b. The selection of investment contracts to be included
within the plan established by the board shall be made either
pursuant to a competitive bidding process conducted by the

House File 2612, p. 10
board, in coordination with employee organizations representing
employees eligible to participate in the plan, or pursuant to
an agreement with the department of administrative services
to make available investment contracts included in a deferred
compensation or similar plan established by the department
pursuant to section 8A.438 , which plan meets the requirements
of this subsection . The determination of whether to select
investment contracts for the plan pursuant to a competitive
bidding process or by agreement with the department of
administrative services shall be made by agreement between the
board and the employee organizations representing employees
eligible to participate in the plan.
c. The board may make elective deferrals in accordance with
the plan as authorized by an eligible employee for the purpose
of making contributions to the investment contract on behalf of
the employee. The deferrals shall be made in the manner which
will qualify contributions to the investment contract for the
benefits under section 403(b) of the Internal Revenue Code,
as defined in section 422.3 . In addition, the board may make
nonelective employer contributions to the plan.
d. As used in this subsection , unless the context otherwise
requires, “investment contract” shall mean a custodial account
utilizing mutual funds or an annuity contract which meets the
requirements of section 403(b) of the Internal Revenue Code, as
defined in section 422.3 .
15. Be authorized to establish and pay all or any part
of the cost of group health insurance plans, nonprofit group
medical service plans and group life insurance plans adopted by
the board for the benefit of employees of the area education
agency, from funds available to the board.
16. Meet at least annually with the members of the boards
of directors of the merged areas in which the area education
agency is located to discuss coordination of programs and
services and other matters of mutual interest to the boards.
17. Be authorized to issue warrants and anticipatory
warrants pursuant to chapter 74 . The applicable rate of
interest shall be determined pursuant to sections 74A.2 , 74A.3 ,
and 74A.7 . This subsection shall not be construed to authorize
a board to levy a tax.

House File 2612, p. 11
18. Be authorized to issue school credit cards allowing area
education agency employees to pay for the actual and necessary
expenses incurred in the performance of work-related duties.
19. Pursuant to rules adopted by the state board of
education, be authorized to charge user fees for certain
materials and services that are not required by law or by rules
of the state board of education and are specifically requested
by a school district or accredited nonpublic school.
20. Be authorized to purchase equipment as provided in
section 279.48 .
21. Be authorized to sell, lease, or dispose of, in whole
or in part, property belonging to the area education agency.
Before the area education agency may sell property belonging
to the agency, the board of directors shall comply with the
requirements set forth in section 297.22 . Before the board
of directors of an area education agency may lease property
belonging to the agency, the board shall obtain the approval of
the director of the department of education.
22. Meet annually with the members of the boards of
directors of the school districts located within its boundaries
if requested by the school district boards.
23. By October 1 of each year, submit to the department of
education the following information:
a. The contracted salary including bonus wages and benefits,
annuity payments, or any other benefit for the administrators
of the area education agency.
b. The contracted salary and benefits and any other expenses
related to support for governmental affairs efforts, including
expenditures for lobbyists and lobbying activities for the area
education agency.
24. Be authorized to sell software and support services,
professional development programs and materials, online
professional development, and online training to entities
other than school districts within the state and to school
districts and other public agencies located outside of the
state. The board may also sell to school districts within this
state software and support services, professional development
programs and materials, online professional development,
and online training which the area education agency is not

House File 2612, p. 12
otherwise required to provide to a school district under this
chapter or chapter 256B or 257 .
25. Require, by July 1, 2024, any person employed by
the area education agency who holds a license, certificate,
statement of recognition, or authorization other than a
coaching authorization, issued by the board of educational
examiners under chapter 256, subchapter VII, part 3 , to
complete the Iowa reading research center dyslexia overview
module. Such persons employed after July 1, 2024, shall
complete the module within one year of the employee’s initial
date of hire.
Sec. 8. Section 273.3, Code 2024, is amended by adding the
following new subsection:
NEW SUBSECTION . 26. On a quarterly basis, the area
education agency shall prepare and submit to each school
district that receives services from the area education agency
a report that includes all of the following:
a. A monetary accounting of payments the area education
agency received from the school district, including payments
under section 257.35.
b. A description of all of the following:
(1) The special education services provided by the area
education agency to the school district.
(2) The services provided by the area education agency under
part C of the federal Individuals with Disabilities Education
Act.
(3) The services provided by the area education agency that
are related to the child find process for special education.
(4) The services provided by the area education agency to
accredited nonpublic schools and charter schools.
Sec. 9. Section 273.5, unnumbered paragraph 1, Code 2024,
is amended to read as follows:
There shall be established a division of special education
of the area education agency which shall provide for special
education programs and services to the local school districts.
The division of special education shall be headed by a director
of special education who meets certification standards of the
department of education. The director of special education
shall be an employee of the division of special education of

House File 2612, p. 13
the department of education. The director of special education
shall not be an employee of the area education agency, shall
not receive compensation from the area education agency, shall
not supervise or manage employees of the area education agency,
and shall not directly provide special education services for
the agency. The director of special education’s primary job
duties and responsibilities to the area education agency are
to provide oversight of the area education agency’s special
education services. The director of special education shall
also have the responsibility for implementation of state
regulations and guidelines relating to special education
programs and services. The director of special education shall
have the following powers and duties:
Sec. 10. Section 273.8, subsection 1, Code 2024, is amended
to read as follows:
1. Board of directors.
a. The board of directors of an area education agency shall
consist of not less than five nor more than nine members ,
each a resident of and elected in the manner provided in this
section from a director district that is approximately equal
in population to the other director districts in the area
education agency . Each director shall serve a four-year term
which commences at the organization meeting.
b. Five members of the board of directors of an area
education agency must be residents of and elected in the
manner provided in this section from a director district that
is approximately equal in population to the other director
districts in the area education agency.
c. Four members of the board of directors of an area
education agency must be appointed by the majority vote of
the superintendents of school districts located within the
boundaries of the area education agency. A member appointed
pursuant to this paragraph must be a superintendent of a school
district located within the boundaries of the area education
agency; provided, however, that a superintendent appointed
pursuant to this paragraph may designate any individual to
serve for all, or the remainder of, the superintendent’s term.
Sec. 11. Section 273.8, subsection 2, paragraphs c and d,
Code 2024, are amended to read as follows:

House File 2612, p. 14
c. The board of each separate school district that is
located entirely or partially inside an area education agency
director district shall cast a vote for director of the area
education agency board described in subsection 1, paragraph
“b” , based upon the ratio that the population of the school
district, or portion of the school district, in the director
district bears to the total population in the director
district. The population of each school district or portion
shall be determined by the department of education. The member
of the area education agency board described in subsection 1,
paragraph “b” , to be elected may be a member of a local school
district board of directors and shall be an elector and a
resident of the director district, but shall not be a school
district employee.
d. (1) Vacancies A vacancy , as defined in section 277.29 ,
in the a membership position of the area education agency
board described in subsection 1, paragraph “b” , shall be filled
for the unexpired portion of the term at a director district
convention called and conducted in the manner provided in
subsection 3 .
(2) A vacancy, as defined in section 277.29, in a membership
position of the area education agency board described in
subsection 1, paragraph “c” , shall be filled for the unexpired
portion of the term by an individual who is appointed by
the majority vote of the superintendents of school districts
located within the boundaries of the area education agency.
Sec. 12. Section 273.8, subsection 3, Code 2024, is amended
to read as follows:
3. Director district convention. If no candidate files with
the area education agency secretary by the deadline specified
in subsection 2 , or a vacancy occurs, or if otherwise required
as provided in section 273.23, subsection 3 , a director
district convention, attended by members of the boards of
directors of the local school districts located within the
director district, shall be called to elect a board member
described in subsection 1, paragraph “b” , for that director
district. The convention location shall be determined by the
area education agency administrator. Notice of the time, date,
and place of a director district convention shall be published

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by the area education agency administrator in at least one
newspaper of general circulation in the director district at
least thirty days prior to the day of the convention. The cost
of publication shall be paid by the area education agency. A
candidate for election to the area education agency board shall
file a statement of candidacy with the area education agency
secretary at least ten days prior to the date of the director
district convention on forms prescribed by the department of
education, or nominations may be made at the convention by a
delegate from a board of directors of a school district located
within the director district. A statement of candidacy shall
include the candidate’s name, address, and school district.
Delegates to director district conventions shall not be bound
by a school board or any school board member to pledge their
votes to any candidate prior to the date of the convention.
Sec. 13. Section 273.10, subsection 6, Code 2024, is amended
to read as follows:
6. a. If the deficiencies in an area education program have
not been corrected, the agency board director of the department
of education shall take one of the following actions within
sixty days from removal of accreditation:
(1) Merge the deficient program with a program from another
accredited area education agency.
(2) Contract with another area education agency or other
public educational institution for purposes of program
delivery.
b. The rules developed by the state board of education for
the accreditation process shall include provisions for removal
of accreditation, including provisions for proper notice to the
administrator of the area education agency, each member of the
board of directors of the area education agency, the department
of education, and the superintendents and administrators of the
schools of the districts served by the area education agency.
Sec. 14. Section 273.11, Code 2024, is amended to read as
follows:
273.11 Standards for accrediting area education programs.
1. The state board of education , in consultation with the
division of special education of the department of education,
shall develop standards and rules for the accreditation of area

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education agencies. Standards shall be general in nature,
but at a minimum shall identify requirements addressing the
services provided by each division, as well as identifying
indicators of quality that will permit area education agencies,
school districts, the division of special education of the
department of education, and the general public to judge
accurately the effectiveness of area education agency services.
2. Standards developed shall include, but are not limited
to, the following:
a. Support for school-community planning, including a means
of assessing needs, developing collaborative relationships
among community agencies, establishing shared direction , and
implementing program plans and reporting progress toward goals
for all students, including students with disabilities .
b. Professional Evidence-based professional development
programs that respond to current needs.
c. Support for curriculum development, instruction, and
assessment for services that address the areas of reading,
language arts, math , and science, using research-based
methodologies , for all students, including students with
disabilities .
d. Special education compliance and support.
e. Management services, including financial reporting and
purchasing as requested and funded by local districts.
f. Support for instructional media services that supplement
and support local district media centers and services.
g. Support for school technology planning and staff
development for implementing instructional technologies.
h. A program and services evaluation and reporting system
that includes information related to special education .
i. Support for school district libraries in accordance with
section 273.2, subsection 4 .
j. Support for early childhood service coordination for
families and children , age birth through three years, to
meet health, safety, and learning needs , including service
coordination .
k. Timely submission of required reports and documents to
the state board of education, the department of education,
and the division of special education of the department of

House File 2612, p. 17
education.
l. Support for schools and school districts in analyzing
student achievement data related to the learning environment,
comparing data to the external knowledge base, and using that
information to guide schools and school districts in setting
goals and implementing actions to improve student learning for
all students, including students with disabilities.
m. Support for addressing the diverse learning needs of
all children and youths, including children and youths who are
eligible for special education through services that include
direct services to students with disabilities.
n. Support for schools and school districts to ensure
compliance with rules adopted by the state board of education
related to special education.
o. Support necessary to implement effective instruction for
all students, including students with disabilities, through
school technology services.
p. Support for students using educational programs and
services in a manner that is consistent with the educational
standards established pursuant to section 256.11.
q. Support for staff development and adult learners
utilizing evidence-based professional development in a manner
that meets the professional needs of staff and adult learners
consistent with standards adopted by the state board of
education.
r. Compliance with all relevant federal and state laws
in the provision of services and supports to students with
disabilities.
Sec. 15. Section 284.6, subsection 10, Code 2024, is amended
to read as follows:
10. If funds are allocated for purposes of professional
development pursuant to section 284.13, subsection 1 , paragraph
“c” , the department shall , in collaboration with the area
education agencies, establish teacher development academies
for public and nonpublic school-based teams of teachers and
instructional leaders. Each academy shall include an institute
and shall provide follow-up training and coaching.
Sec. 16. AREA EDUCATION AGENCY —— TASK FORCE.
1. The legislative council shall convene an area education

House File 2612, p. 18
agency task force that shall do all of the following:
a. Study and make recommendations related to how to improve
the outcomes of students who utilize services provided by area
education agencies.
b. Study and make recommendations related to the amount of
compensation paid to administrators employed by area education
agencies, core services provided by area education agencies,
and how to best fund the following services provided by area
education agencies:
(1) Crisis response services.
(2) Media services for nonpublic schools.
(3) Professional development services.
(4) Cooperative purchasing.
(5) Services associated with regional planning
partnerships.
(6) Services associated with the federal Carl D. Perkins
Career and Technical Education Improvement Act of 2006,
codified at 20 U.S.C. §2301 et seq., as amended.
(7) Services associated with the federal Every Student
Succeeds Act, Pub. L. No. 114-95.
(8) Services provided in conjunction with special education
equipment.
c. Study and make recommendations related to all of the
following:
(1) The real property and facilities utilized by each area
education agency.
(2) The media services, educational services, and special
education services provided by each area education agency.
(3) What services area education agencies should provide.
(4) Current accountability measures applicable to area
education agencies.
(5) The special education services provided by the division
of special education of the department of education, area
education agencies, and school districts.
(6) The overall organizational structure that determines
how special education services are provided to students in this
state.
(7) How the operation of area education agencies is
overseen.

House File 2612, p. 19
(8) The accreditation standards related to area education
agencies.
(9) A timeline for modifications to the staffing numbers of
area education agencies and the transition of responsibilities
related to the oversight of area education agencies.
2. a. The task force shall consist of the following
voting members who are appointed by the legislative council to
represent different geographical regions of this state:
(1) One special education teacher who is employed by a
school district with a total enrollment of greater than or
equal to one thousand students.
(2) One special education teacher who is employed by a
school district with a total enrollment of less than one
thousand students.
(3) One superintendent who is employed by a school district
with a total enrollment of greater than or equal to one
thousand students.
(4) One superintendent who is employed by a school district
with a total enrollment of less than one thousand students.
(5) One teacher who is employed by a school district and who
does not provide special education programs or services.
(6) One parent or guardian of a student who has an
individualized education program.
(7) One parent or guardian of a student who has a plan under
section 504 of the federal Rehabilitation Act, 29 U.S.C. §794.
(8) One president or chief executive officer of an
accredited nonpublic school.
b. The task force shall also consist of the following voting
members:
(1) One member to be appointed by the governor.
(2) One member to be appointed by the director of the
department of education.
(3) One member who is the chief administrator of the
heartland area education agency.
c. The task force shall also consist of the following ex
officio, nonvoting members of the general assembly:
(1) Two state senators appointed by the majority leader of
the senate.
(2) One state senator appointed by the minority leader of

House File 2612, p. 20
the senate.
(3) Two state representatives appointed by the speaker of
the house of representatives.
(4) One state representative appointed by the minority
leader of the house of representatives.
3. Any expenses incurred by a member of the task force
shall be the responsibility of the individual member or the
respective entity represented by the member.
4. The task force shall submit its findings and
recommendations in a report to the general assembly on
or before December 31, 2024. The report shall include an
examination and evaluation of the impact to area education
agencies and their operations and services made by this Act.
Sec. 17. AREA EDUCATION AGENCIES —— CONTINUOUS
IMPROVEMENT. On or before January 1, 2025, each area education
agency shall submit a report to the director of the department
of education and the general assembly that contains all of the
following information:
1. Progress the area education agency has made in reducing
expenditures associated with administration and administrators,
including chief administrators, directors and department heads,
regional administrators, regional and zone coordinators,
district coordinators, and human resources and personnel
managers by at least thirty percent by July 1, 2026.
2. A proposal for the reorganization of services provided by
area education agencies to centralize some services provided by
the area education agencies, including media services, and to
create centers of excellence for other services.
3. Progress the area education agency has made to improve
the outcomes achieved by students receiving special education
services and a description of how the area education agency is
focusing the moneys it receives on providing service in the
classroom.
Sec. 18. TRANSITION PROVISIONS.
1. An area education agency that was accredited pursuant to
section 273.10 on or before the effective date of the section
of this division of this Act amending section 273.10 shall
remain accredited unless and until the division of special
education of the department of education takes action to remove

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accreditation from the area education agency pursuant to
section 273.10, as amended in this division of this Act.
2. Within a reasonable time after July 1, 2024, the
division of special education of the department of education
shall employ at least one individual to serve as a director of
special education in each area education agency. During the
hiring process associated with employing an individual to serve
as director of special education in an area education agency,
the division of special education shall give preference to
qualified personnel employed by the area education agency.
Sec. 19. EFFECTIVE DATE. The following take effect July 1,
2025:
1. The section of this division of this Act amending section
273.10.
2. The section of this division of this Act amending section
273.11.
Sec. 20. APPLICABILITY. The following applies to
employment agreements entered into or renewed between an area
education agency and an area education agency administrator on
or after July 1, 2024:
The portion of the section of this division of this Act
amending section 273.3, subsection 11.
Sec. 21. APPLICABILITY. The following applies to the
election of directors and vacancies occurring under section
273.8, as amended in this division of this Act, on or after
July 1, 2024:
The sections of this division of this Act amending section
273.8.
Sec. 22. APPLICABILITY. The following apply to school years
beginning on or after July 1, 2025:
1. The portion of the section of this division of this Act
amending section 273.2, subsection 3.
2. The portion of the section of this division of this Act
amending section 273.2, subsection 4.
3. The portion of the section of this division of this Act
enacting section 273.2, subsection 4A.
DIVISION III
AREA EDUCATION AGENCIES —— FUNDING
Sec. 23. Section 257.1, subsection 2, paragraph b, Code

House File 2612, p. 22
2024, is amended to read as follows:
b. For the budget year commencing July 1, 1999, and for
each succeeding budget year beginning before July 1, 2022,
the regular program foundation base per pupil is eighty-seven
and five-tenths percent of the regular program state cost per
pupil. For the budget year commencing July 1, 2022, and for
each succeeding budget year, the regular program foundation
base per pupil is eighty-eight and four-tenths percent of the
regular program state cost per pupil. For the budget year
commencing July 1, 1991, and for each succeeding budget year
the special education support services foundation base is
seventy-nine percent of the special education support services
state cost per pupil. The combined foundation base is the sum
of the regular program foundation base, the special education
support services foundation base, the total teacher salary
supplement district cost, the total professional development
supplement district cost, the total early intervention
supplement district cost, the total teacher leadership
supplement district cost, and the total area education agency
teacher salary supplement district cost , and the total area
education agency professional development supplement district
cost .
Sec. 24. Section 257.1, subsection 3, Code 2024, is amended
to read as follows:
3. Computations rounded. In making computations and
payments under this chapter , except in the case of computations
relating to funding of special education support services,
media services, and educational services provided through the
area education agencies under section 257.37 , and the teacher
salary supplement, the professional development supplement,
the early intervention supplement, and the teacher leadership
supplement, the department of management shall round amounts to
the nearest whole dollar.
Sec. 25. Section 257.4, subsection 1, paragraph a,
subparagraph (7), Code 2024, is amended by striking the
subparagraph.
Sec. 26. Section 257.9, subsection 10, Code 2024, is amended
by striking the subsection.
Sec. 27. Section 257.10, subsection 7, Code 2024, is amended

House File 2612, p. 23
to read as follows:
7. Special education support services district cost. Special
education support services district cost for a school district
for a budget year is equal to the special education support
services district cost per pupil for the budget year multiplied
by the special education support services weighted enrollment
for the district for the budget year. If the special education
support services district cost for a school district for
a budget year is less than the special education support
services district cost for that district for the base year, the
department of management shall adjust the special education
support services district cost for that district for the budget
year to equal the special education support services district
cost for the base year. Funds calculated under this subsection
and received by a school district shall be used for special
education support services. For budget years beginning on
or after July 1, 2025, not less than ninety percent of funds
calculated under this subsection and received by a school
district shall be used by the school district for special
education support services contracted from an area education
agency. The contract between the school district and the area
education agency shall not require the school district to
describe the specific special education support services the
school district will receive from the area education agency.
The special education services provided by the area education
agency to the school district pursuant to the contract shall
not be limited by the amount of funding the school district
provided to the area education agency.
Sec. 28. Section 257.10, subsection 8, paragraph a, Code
2024, is amended to read as follows:
a. Combined district cost is the sum of the regular
program district cost per pupil multiplied by the weighted
enrollment, the special education support services district
cost, the total teacher salary supplement district cost, the
total professional development supplement district cost, the
total early intervention supplement district cost, and the
total teacher leadership supplement district cost, plus the sum
of the additional district cost allocated to the district to
fund media services and educational services provided through

House File 2612, p. 24
the area education agency under section 257.37 , and the area
education agency total teacher salary supplement district cost
and the area education agency total professional development
supplement district cost .
Sec. 29. Section 257.16, subsection 4, Code 2024, is amended
to read as follows:
4. Notwithstanding any provision to the contrary, if
the governor orders budget reductions in accordance with
section 8.31 , the teacher salary supplement district cost,
the professional development supplement district cost, the
early intervention supplement district cost, and the teacher
leadership supplement district cost as calculated under section
257.10, subsections 9, 10, 11, and 12 , and the area education
agency teacher salary supplement district cost and the area
education agency professional development supplement district
cost as calculated under section 257.37A , subsections 1 and 2,
shall be paid in full as calculated and the reductions in the
appropriations provided in accordance with this section shall
be reduced from the remaining moneys appropriated pursuant
to this section and shall be distributed on a per pupil
basis calculated with the weighted enrollment determined in
accordance with section 257.6, subsection 5 .
Sec. 30. Section 257.35, subsections 1, 2, and 17, Code
2024, are amended to read as follows:
1. a. (1) The For fiscal years beginning before July 1,
2024, the department of management shall deduct the amounts
calculated for special education support services, media
services, area education agency teacher salary supplement
district cost, area education agency professional development
supplement district cost, and educational services for each
school district from the state aid due to the district pursuant
to this chapter and shall pay the amounts to the respective
area education agencies on a monthly basis from September 15
through June 15 during each school year.
(2) For the fiscal year beginning July 1, 2024, the
department of management shall deduct the following amounts
from the state aid due to each school district pursuant to
this chapter and shall pay the amounts to the respective area
education agencies on a monthly basis from September 15 through

House File 2612, p. 25
June 15 during each school year:
(a) The amount calculated for special education support
services for the school district.
(b) Forty percent of the amount calculated for media
services for the school district.
(c) The area education agency teacher salary supplement
district cost.
(d) Forty percent of the amount calculated in section 257.37
for educational services for the school district.
(e) The amount due to the area education agency as the
result of supplementary weighting for shared operational
functions under section 257.11, subsection 5, paragraph “e” .
(3) For the fiscal year beginning July 1, 2025, and each
fiscal year thereafter, the department of management shall
deduct the following from the state aid due to each school
district pursuant to this chapter and shall pay the amounts to
the respective area education agencies on a monthly basis from
September 15 through June 15 during each school year:
(a) The area education agency teacher salary supplement
district cost.
(b) The amount due to the area education agency as the
result of supplementary weighting for shared operational
functions under section 257.11, subsection 5, paragraph “e” .
b. The department of management shall notify each school
district of the amount of state aid deducted for these purposes
and the balance of state aid shall be paid to the district. If
a district does not qualify for state aid under this chapter
in an amount sufficient to cover its amount due to the area
education agency as calculated by the department of management,
the school district shall pay the deficiency to the area
education agency from other moneys received by the district, on
a quarterly basis during each school year.
2. Notwithstanding the deduction and payment under
subsection 1 , the state aid for area education agencies and
the portion of the combined district cost calculated for these
agencies amounts specified for school districts and area
education agencies in subsection 1, paragraph “a” , for the
fiscal year beginning July 1, 2002 2024 , and each succeeding
fiscal year, shall be reduced by the department of management

House File 2612, p. 26
by seven million five hundred thousand dollars. The reduction
for each area education agency shall be equal to the reduction
that the agency received in the fiscal year beginning July 1,
2001 The department of management shall calculate a reduction
such that such amounts shall be reduced proportionally to the
amount that the agency would otherwise have received under this
section if the reduction imposed pursuant to this subsection
did not apply .
17. a. Notwithstanding subsection 1 , and in addition to the
reductions applicable pursuant to subsection 2 and paragraph
“b” of this subsection , the state aid for area education
agencies and the portion of the combined district cost
calculated for these agencies related to expenditures other
than expenditures for professional development for the fiscal
year beginning July 1, 2022, and ending June 30, 2023, shall
be reduced by the department of management by fifteen million
dollars. The reduction for each area education agency shall be
prorated based on the reduction that the agency received in the
fiscal year beginning July 1, 2003.
b. Notwithstanding subsection 1 , and in addition to
the reductions applicable pursuant to subsection 2 and
paragraph “a” of this subsection , the state aid for area
education agencies and the portion of the combined district
cost calculated for these agencies related to professional
development expenditures for the fiscal year beginning July
1, 2022, and ending June 30, 2023, shall be reduced by the
department of management by an amount equal to the sum of the
area education agency professional development supplement
district cost for all area education agencies determined under
section 257.37A, subsection 2 , Code 2022, for the budget
year beginning July 1, 2022. The reduction for each area
education agency shall be equal to the area education agency’s
professional development district cost determined under section
257.37A, subsection 2 , Code 2022, for the budget year beginning
July 1, 2022. The amounts reduced under this paragraph shall
be considered funds paid to school districts and area education
agencies under chapter 284 for purposes of requirements for
providing professional development opportunities.
Sec. 31. Section 257.36, subsection 1, Code 2024, is amended

House File 2612, p. 27
to read as follows:
1. Notwithstanding chapters 256B and 273 and sections
of this chapter relating to the moneys available to school
districts and area education agencies for special education
support services, for each school year, the department of
education may direct the department of management to deduct
amounts from the portions of school district budgets that
fund special education support services in an area education
agency. The total amount deducted in an area for a school
district shall be based upon excess special education support
services unreserved and undesignated fund balances in that
school district or paid by the school district to an area
education agency for a school year that remain unreserved and
undesignated as determined by the department of education. The
department of management shall determine the amount deducted
from each school district in an area education agency on
a proportional basis. The department of management shall
determine from the amounts deducted from the portions of school
district budgets that fund area education agency special
education support services the amount that would have been
local property taxes and the amount that would have been state
aid and for the next following budget year shall increase the
district’s total state school aid available under this chapter
for area education agency special education support services
and reduce the district’s property tax levy for area education
agency special education support services by the amount
necessary for the property tax portion of the deductions made
under this section during the budget year.
Sec. 32. Section 257.37, Code 2024, is amended to read as
follows:
257.37 Funding media and educational services.
Media services and educational services provided by a school
district or through the area education agencies agency shall be
funded, to the extent provided, by an addition to the combined
district cost of each school district, determined as follows:
1. For the budget year beginning July 1, 1991, and
succeeding budget years, the total amount funded in each area
for media services shall be computed as provided in this
subsection . For the budget year beginning July 1, 1991, the

House File 2612, p. 28
total amount funded in each area for media services in the base
year shall be divided by the enrollment served in the base year
to provide an area media services cost per pupil in the base
year, and the department of management shall compute the state
media services cost per pupil in the base year which is equal
to the average of the area media services costs per pupil in
the base year. For the budget year beginning July 1, 1991, and
succeeding budget years, the department of management shall
compute the supplemental state aid for media services in the
budget year by multiplying the state media services cost per
pupil in the base year times the state percent of growth for
the budget year, and the total amount funded in each area for
media services cost in the budget year equals the area media
services cost per pupil in the base year plus the supplemental
state aid for media services in the budget year times the
enrollment served in the budget year. Funds For fiscal years
beginning before July 1, 2025, funds shall be paid to area
education agencies as provided in section 257.35 . For fiscal
years beginning on or after July 1, 2024, funds not required to
be paid to an area education agency may be used by the school
district for any school district general fund purpose.
2. Up to thirty percent of the budget of an area for media
services may be expended for media resource material including
the purchase or replacement of material required in section
273.6, subsection 1 . Funds shall be paid to area education
agencies as provided in section 257.35 .
3. For the budget year beginning July 1, 1991, and
succeeding budget years, the total amount funded in each area
for educational services shall be computed as provided in this
subsection . For the budget year beginning July 1, 1991, the
total amount funded in each area for educational services
in the base year shall be divided by the enrollment served
in the area in the base year to provide an area educational
services cost per pupil in the base year, and the department of
management shall compute the state educational services cost
per pupil in the base year, which is equal to the average of
the area educational services costs per pupil in the base year.
For the budget year beginning July 1, 1991, and succeeding
budget years, the department of management shall compute the

House File 2612, p. 29
supplemental state aid for educational services by multiplying
the state educational services cost per pupil in the base year
times the state percent of growth for the budget year, and the
total amount funded in each area for educational services for
the budget year equals the area educational services cost per
pupil for the base year plus the supplemental state aid for
educational services in the budget year times the enrollment
served in the area in the budget year. Funds For fiscal years
beginning before July 1, 2025, funds shall be paid to area
education agencies as provided in section 257.35 . For fiscal
years beginning on or after July 1, 2024, funds not required to
be paid to an area education agency may be used by the school
district for any school district general fund purpose.
4. “Enrollment served” means the basic enrollment of all
school districts within the boundaries of the area education
agency plus the number of nonpublic school pupils served by
the area education agency with media services or educational
services, as applicable, except that if a nonpublic school
pupil or a pupil attending another district under a whole grade
sharing agreement or open enrollment receives services through
an area other than the area of the pupil’s residence, the
pupil shall be deemed to be served by the area of the pupil’s
residence, which shall by contractual arrangement reimburse
the area through which the pupil actually receives services.
Each school district shall include in the enrollment report
submitted pursuant to section 257.6, subsection 1 , the number
of nonpublic school pupils within each school district for
media and educational services served by the area. However,
the school district shall not include in the enrollment report
nonpublic school pupils receiving classes or services funded
entirely by federal grants or allocations.
5. a. If an area education agency does not serve nonpublic
school pupils in a manner comparable to services provided
public school pupils for media and educational services, as
determined by the state board of education, the state board
shall instruct the department of management to reduce the funds
for media services and educational services within the area one
time by an amount to compensate for such reduced services. The
media services budget shall be reduced by an amount equal to

House File 2612, p. 30
the product of the cost per pupil in basic enrollment for the
budget year for media services times the difference between
the enrollment served and the basic enrollment recorded for
the area. The educational services budget shall be reduced by
an amount equal to the product of the cost per pupil in basic
enrollment for the budget year for educational services times
the difference between the enrollment served and the basic
enrollment recorded for the area.
b. This subsection applies only to media and educational
services which cannot be diverted for religious purposes.
c. Notwithstanding this subsection , an area education agency
shall distribute to nonpublic schools media materials purchased
wholly or partially with federal funds in a manner comparable
to the distribution of such media materials to public schools
as determined by the director of the department of education.
6. For the budget year beginning July 1, 2002, and each
succeeding budget year, notwithstanding the requirements of
this section for determining the budgets and funding of media
services and education services, an area education agency or
school district may , within the limits of the total of the
funds provided for the budget years pursuant to section 257.35 ,
expend for special education support services an amount that
exceeds the payment for special education support services
pursuant to section 257.35 in order to maintain the level
of required special education support services in the area
education agency or the school district, as applicable .
Sec. 33. Section 257.37A, Code 2024, is amended to read as
follows:
257.37A Area education agency salary supplement funding.
1. Area education agency teacher salary supplement cost per
pupil and district cost.
a. 1. For the budget year beginning July 1, 2009, the
department of management shall add together the teacher
compensation allocation made to each area education agency for
the fiscal year beginning July 1, 2008, pursuant to section
284.13, subsection 1 , paragraph “i” , Code 2009, and the phase II
allocation made to each area education agency for the fiscal
year beginning July 1, 2008, pursuant to section 294A.9, Code
2009 , and divide that sum by the special education support

House File 2612, p. 31
services weighted enrollment in the fiscal year beginning July
1, 2009, to determine the area education agency teacher salary
supplement cost per pupil. For the budget year beginning July
1, 2010, and succeeding budget years, the area education agency
teacher salary supplement district cost per pupil for each area
education agency for a budget year is the area education agency
teacher salary supplement district cost per pupil for the base
year plus the area education agency teacher salary supplement
supplemental state aid amount for the budget year.
b. 2. For the budget year beginning July 1, 2010, and
succeeding budget years, if the department of management
determines that the unadjusted area education agency teacher
salary supplement district cost of an area education agency
for a budget year is less than one hundred percent of the
unadjusted area education agency teacher salary supplement
district cost for the base year for the area education agency,
the area education agency shall receive a budget adjustment for
that budget year equal to the difference.
c. (1) 3. a. The unadjusted area education agency teacher
salary supplement district cost is the area education agency
teacher salary supplement district cost per pupil for each area
education agency for a budget year multiplied by the special
education support services weighted enrollment for that area
education agency.
(2) b. The total area education agency teacher salary
supplement district cost is the sum of the unadjusted area
education agency teacher salary supplement district cost plus
the budget adjustment for that budget year.
d. 4. For the budget year beginning July 1, 2009, the
use of the funds calculated under this subsection section
shall comply with requirements of chapter 284 and shall be
distributed to teachers pursuant to section 284.3A . For the
budget year beginning July 1, 2010, and succeeding budget
years, the use of the funds calculated under this subsection
section shall comply with the requirements of chapter 284 and
shall be distributed to teachers pursuant to section 284.3A .
2. Area education agency professional development supplement
cost per pupil and district cost.
a. For the budget year beginning July 1, 2009, the

House File 2612, p. 32
department of management shall divide the area education
agency professional development supplement made to each
area education agency for the fiscal year beginning July 1,
2008, pursuant to section 284.13, subsection 1 , paragraph
“d” , Code 2009, by the special education support services
weighted enrollment in the fiscal year beginning July 1, 2009,
to determine the professional development supplement cost
per pupil. For the budget year beginning July 1, 2010, and
succeeding budget years, the area education agency professional
development supplement district cost per pupil for each area
education agency for a budget year is the area education agency
professional development supplement district cost per pupil
for the base year plus the area education agency professional
development supplement supplemental state aid amount for the
budget year.
b. For the budget year beginning July 1, 2010, and
succeeding budget years, if the department of management
determines that the unadjusted area education agency
professional development supplement district cost of an area
education agency for a budget year is less than one hundred
percent of the unadjusted area education agency professional
development supplement district cost for the base year for
the area education agency, the area education agency shall
receive a budget adjustment for that budget year equal to the
difference.
c. (1) The unadjusted area education agency professional
development supplement district cost is the area education
agency professional development supplement district cost
per pupil for each area education agency for a budget year
multiplied by the special education support services weighted
enrollment for that area education agency.
(2) The total area education agency professional
development supplement district cost is the sum of the
unadjusted area education agency professional development
supplement district cost plus the budget adjustment for that
budget year.
d. The use of the funds calculated under this subsection
shall comply with requirements of chapter 284 .
Sec. 34. Section 284.3A, subsection 4, Code 2024, is amended

House File 2612, p. 33
to read as follows:
4. The teacher salary supplement district cost as
calculated under section 257.10, subsection 9 , and the area
education agency teacher salary supplement district cost as
calculated under section 257.37A , subsection 1, are not subject
to a uniform reduction in accordance with section 8.31 .
Sec. 35. Section 284.4, subsection 1, paragraph b,
subparagraph (3), Code 2024, is amended to read as follows:
(3) Determine, following the adoption of the Iowa
professional development model by the state board of education,
the use and distribution of the professional development
funds calculated and paid to the school district or agency as
provided in section 257.9, subsection 10 , or section 257.10,
subsection 10 , based upon school district or agency , attendance
center, and individual teacher and professional development
plans.
Sec. 36. Section 284.6, subsections 8 and 9, Code 2024, are
amended to read as follows:
8. For each year in which a school district receives funds
calculated and paid to school districts for professional
development pursuant to section 257.10, subsection 10 , or
section 257.37A, subsection 2 , the school district shall create
quality professional development opportunities. Not less than
thirty-six hours in the school calendar, held outside of the
minimum school day, shall be set aside during nonpreparation
time or designated professional development time to allow
practitioners to collaborate with each other to deliver
educational programs and assess student learning, or to engage
in peer review pursuant to section 284.8, subsection 1 . The
funds may be used to implement the professional development
provisions of the teacher career paths and leadership roles
specified in section 284.15 , including but not limited to
providing professional development to teachers, including
additional salaries for time beyond the normal negotiated
agreement; activities and pay to support a beginning teacher
mentoring and induction program that meets the requirements
of section 284.5 ; pay for substitute teachers, professional
development materials, speakers, and professional development
content; textbooks and curriculum materials used for classroom

House File 2612, p. 34
purposes if such textbooks and curriculum materials include
professional development; administering assessments pursuant to
section 256.7, subsection 21 , paragraph “b” , subparagraphs (1)
and (2), if such assessments include professional development;
and costs associated with implementing the individual
professional development plans. The use of the funds shall
be balanced between school district, attendance center,
and individual professional development plans, making every
reasonable effort to provide equal access to all teachers.
9. Moneys received pursuant to section 257.10, subsection
10 , or section 257.37A, subsection 2 , shall be maintained
as a separate listing within a school district’s or area
education agency’s budget for funds received and expenditures
made pursuant to this subsection . The department shall not
require a school district or area education agency to allocate
a specific amount or percentage of moneys received pursuant to
section 257.10, subsection 10 , or section 257.37A, subsection
2 , for professional development related to implementation of
the core curriculum under section 256.7, subsection 26 . A
school district shall certify to the department how the school
district allocated the funds and that moneys received under
this subsection were used to supplement, not supplant, the
professional development opportunities the school district
would otherwise make available. For budget years beginning
on or after July 1, 2017, all or a portion of the moneys
received pursuant to section 257.10, subsection 10 , that remain
unexpended and unobligated at the end of a fiscal year may,
pursuant to section 257.10, subsection 10 , paragraph “d” , be
transferred for deposit in the school district’s flexibility
account established under section 298A.2, subsection 2 .
Sec. 37. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 38. APPLICABILITY. This division of this Act applies
July 1, 2024, for school budget years beginning on or after
that date.
DIVISION IV
TEACHER COMPENSATION AND IPERS
Sec. 39. Section 97B.52A, subsection 1, paragraph c,
subparagraph (2), Code 2024, is amended by adding the following

House File 2612, p. 35
new subparagraph division:
NEW SUBPARAGRAPH DIVISION . (d) For a member whose first
month of entitlement is July 2024 or later, but before July
2027, the member may return to covered employment as a teacher
for a covered employer after receiving one month of retirement
benefits. For the purposes of this subparagraph division,
“teacher” means a teacher licensed under chapter 256.
Sec. 40. Section 257.10, subsection 12, paragraph d, Code
2024, is amended to read as follows:
d. Except as otherwise allowed under this paragraph, for
the budget year beginning July 1, 2014, and succeeding budget
years, the use of the funds calculated under this subsection
shall comply with the requirements of chapter 284 and shall
be distributed to teachers pursuant to section 284.15 . The
funds shall be used only to increase the payment for a teacher
assigned to a leadership role pursuant to a framework or
comparable system approved pursuant to section 284.15 ; to
increase the percentages of teachers assigned to leadership
roles; to increase the minimum teacher starting salary to
thirty-three thousand five hundred dollars the amount provided
in section 284.15, subsection 2, paragraph “a” , subparagraph
(1) ; to cover the costs for the time mentor and lead teachers
are not providing instruction to students in a classroom;
for coverage of a classroom when an initial or career
teacher is observing or co-teaching with a teacher assigned
to a leadership role; for professional development time to
learn best practices associated with the career pathways
leadership process; and for other costs associated with a
framework or comparable system approved by the department of
education under section 284.15 with the goals of improving
instruction and elevating the quality of teaching and student
learning. If all requirements for the school district for
the use of funds calculated under this subsection are met
and funds received under this subsection remain unexpended
and unobligated at the end of a fiscal year beginning on or
after July 1, 2020, the school district may transfer all or a
portion of such unexpended and unobligated funds for deposit
in the school district’s flexibility account established
under section 298A.2, subsection 2 . At the end of a fiscal

House File 2612, p. 36
year beginning on or after July 1, 2022, school districts may
use all or a portion of funds under this subsection for the
purposes authorized under subsection 9 , paragraph “d” , and,
notwithstanding any provision of law to the contrary, school
districts shall not be required to participate in or comply
with section 284.15 in order to continue to receive funding
under this subsection .
Sec. 41. Section 284.15, subsection 2, paragraph a,
subparagraph (1), Code 2024, is amended to read as follows:
(1) (a) The For the fiscal year beginning July 1, 2024, the
salary for an initial teacher who has successfully completed an
approved practitioner preparation program as defined in section
256.145 or holds an initial or intern teacher license issued
under chapter 256, subchapter VII, part 3, shall be at least
thirty-three forty-seven thousand five hundred dollars, which
shall also constitute the minimum salary for an Iowa teacher.
(b) For the fiscal year beginning July 1, 2025, and each
subsequent fiscal year, the salary for an initial teacher who
has successfully completed an approved practitioner preparation
program as defined in section 256.145 or holds an initial or
intern teacher license issued under chapter 256, subchapter
VII, part 3, shall be at least fifty thousand dollars, which
shall also constitute the minimum salary for an Iowa teacher.
Sec. 42. Section 284.15, Code 2024, is amended by adding the
following new subsection:
NEW SUBSECTION . 2A. a. For the fiscal year beginning July
1, 2024, the salary for a career teacher, model teacher, mentor
teacher, or lead teacher, who holds a valid license issued
under chapter 256, subchapter VII, part 3, and who has been
a teacher for at least twelve years, shall be at least sixty
thousand dollars.
b. For the fiscal year beginning July 1, 2025, and each
subsequent fiscal year, the salary for a career teacher, model
teacher, mentor teacher, or lead teacher, who holds a valid
license issued under chapter 256, subchapter VII, part 3, and
who has been a teacher for at least twelve years, shall be at
least sixty-two thousand dollars.
Sec. 43. Section 284.16, subsection 1, paragraph a,
unnumbered paragraph 1, Code 2024, is amended to read as

House File 2612, p. 37
follows:
The For the fiscal year beginning July 1, 2024, the beginning
teacher shall be paid not less than thirty-three forty-seven
thousand five hundred dollars and . For the fiscal year
beginning July 1, 2025, and each subsequent fiscal year, the
beginning teacher shall be paid not less than fifty thousand
dollars. Each beginning teacher shall meet the following
requirements:
Sec. 44. Section 284.16, Code 2024, is amended by adding the
following new subsection:
NEW SUBSECTION . 1A. a. Experienced teacher. For
the fiscal year beginning July 1, 2024, a career teacher,
instructional coach, curriculum and professional development
leader, or model teacher, who has been a teacher for at least
twelve years, shall be paid not less than sixty thousand
dollars.
b. For the fiscal year beginning July 1, 2025, and each
subsequent fiscal year, a career teacher, instructional coach,
curriculum and professional development leader, or model
teacher, who has been a teacher for at least twelve years,
shall be paid not less than sixty-two thousand dollars.
Sec. 45. Section 284.17, subsection 1, Code 2024, is amended
to read as follows:
1. a. A For the fiscal year beginning July 1, 2024, the
minimum salary of thirty-three forty-seven thousand five
hundred dollars for a full-time teacher who has less than
twelve years of teaching experience and a minimum salary of
sixty thousand dollars for a full-time teacher who has at least
twelve years of teaching experience .
b. For the fiscal year beginning July 1, 2025, and each
subsequent fiscal year, the minimum salary of fifty thousand
dollars for a full-time teacher who has less than twelve years
of teaching experience and a minimum salary of sixty-two
thousand dollars for a full-time teacher who has at least
twelve years of teaching experience.
DIVISION V
TEACHER SALARY SUPPLEMENT DISTRICT COST PER PUPIL
Sec. 46. Section 257.10, subsection 9, paragraph a, Code
2024, is amended to read as follows:

House File 2612, p. 38
a. (1) For the budget year beginning July 1, 2009, the
department of management shall add together the teacher
compensation allocation made to each district for the fiscal
year beginning July 1, 2008, pursuant to section 284.13,
subsection 1 , paragraph “h” , Code 2009, and the phase II
allocation made to each district for the fiscal year beginning
July 1, 2008, pursuant to section 294A.9, Code 2009 , and divide
that sum by the district’s budget enrollment in the fiscal
year beginning July 1, 2009, to determine the teacher salary
supplement district cost per pupil. For the budget year
beginning July 1, 2010, and succeeding budget years beginning
before July 1, 2024 , the teacher salary supplement district
cost per pupil for each school district for a budget year
is the teacher salary supplement program district cost per
pupil for the base year plus the teacher salary supplement
supplemental state aid amount for the budget year.
(2) (a) For the budget year beginning July 1, 2024, the
teacher salary supplement district cost per pupil for each
school district shall be determined under this subparagraph.
(b) The department of management shall categorize all
school districts into not more than ten tiers according to each
school district’s actual enrollment. Each tier established
by the department of management containing a school district
with an actual enrollment above three thousand five hundred
pupils shall contain, to the extent feasible, the same number
of school districts as other tiers containing school districts
with an actual enrollment of more than three thousand five
hundred pupils. Each tier established by the department
of management containing a school district with an actual
enrollment equal to or less than three thousand five hundred
pupils shall contain, to the extent feasible, the same number
of school districts as other tiers containing school districts
with an actual enrollment equal to or less than three thousand
five hundred pupils.
(c) (i) To support school districts with meeting the
minimum teacher starting salary requirement of forty-seven
thousand five hundred dollars and the minimum teacher salary
requirement for full-time teachers with at least twelve years
of experience of sixty thousand dollars under chapter 284

House File 2612, p. 39
and other costs associated with such salary requirements, as
identified in subparagraph subdivision (ii), the department of
management shall calculate and assign to all school districts
in a tier established under subparagraph division (b), a
teacher salary supplement district cost per pupil in an amount
based in part on the average cost to school districts within
the tier to meet the requirements.
(ii) If, however, a school district’s total teacher salary
supplement district cost under paragraph “c” as calculated
using the teacher salary supplement district cost per
pupil assigned to the school district’s applicable tier, is
insufficient to comply with the applicable minimum teacher
salary requirements of the school district, including costs
associated with the employer’s share of contributions to the
Iowa public employees’ retirement system and the employer’s
share of the tax imposed by the federal Insurance Contributions
Act, the department of management shall set the school
district’s teacher salary supplement district cost per pupil
at an amount necessary to meet the district’s minimum salary
requirements and associated costs.
(3) (a) For the budget year beginning July 1, 2025, the
teacher salary supplement district cost per pupil for each
school district shall be determined under this subparagraph.
(b) The department of management shall categorize all
school districts into not more than ten tiers according to each
school district’s actual enrollment. Each tier established
by the department of management containing a school district
with an actual enrollment above three thousand five hundred
pupils shall contain, to the extent feasible, the same number
of school districts as other tiers containing school districts
with an actual enrollment of more than three thousand five
hundred pupils. Each tier established by the department
of management containing a school district with an actual
enrollment equal to or less than three thousand five hundred
pupils shall contain, to the extent feasible, the same number
of school districts as other tiers containing school districts
with an actual enrollment equal to or less than three thousand
five hundred pupils.
(c) (i) To support school districts with meeting the

House File 2612, p. 40
minimum teacher starting salary requirement of fifty thousand
dollars and the minimum teacher salary requirement for
full-time teachers with at least twelve years of experience of
sixty-two thousand dollars under chapter 284 and other costs
associated with such salary requirements, as identified in
subparagraph subdivision (ii), the department of management
shall calculate and assign to all school districts in a tier
established under subparagraph division (b), a teacher salary
supplement district cost per pupil in an amount based in part
on the average cost to school districts within the tier to meet
the requirements.
(ii) If, however, a school district’s total teacher
salary supplement district cost under paragraph “c” , as
calculated using the teacher salary supplement district cost
per pupil assigned to the school district’s applicable tier,
is insufficient to comply with the applicable minimum teacher
salary requirements of the school district, including costs
associated with the employer’s share of contributions to the
Iowa public employees’ retirement system and the employer’s
share of the tax imposed by the federal Insurance Contributions
Act, the department of management shall set the school
district’s teacher salary supplement district cost per pupil
at an amount necessary to meet the district’s minimum salary
requirements and associated costs.
(4) For the budget year beginning July 1, 2026, and
succeeding budget years, the teacher salary supplement district
cost per pupil for each school district for a budget year
is the teacher salary supplement program district cost per
pupil for the base year plus the teacher salary supplement
supplemental state aid amount for the budget year.
Sec. 47. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION VI
STATE PERCENTS OF GROWTH
Sec. 48. Section 257.8, subsections 1 and 2, Code 2024, are
amended to read as follows:
1. State percent of growth. The state percent of growth for
the budget year beginning July 1, 2021, is two and four-tenths
percent. The state percent of growth for the budget year

House File 2612, p. 41
beginning July 1, 2022, is two and one-half percent. The state
percent of growth for the budget year beginning July 1, 2023,
is three percent. The state percent of growth for the budget
year beginning July 1, 2024, is two and one-half percent. The
state percent of growth for each subsequent budget year shall
be established by statute which shall be enacted within thirty
days of the transmission of the governor’s budget required by
February 1 under section 8.21 during the regular legislative
session beginning in the base year.
2. Categorical state percent of growth. The categorical
state percent of growth for the budget year beginning July
1, 2021, is two and four-tenths percent. The categorical
state percent of growth for the budget year beginning July
1, 2022, is two and one-half percent. The categorical state
percent of growth for the budget year beginning July 1,
2023, is three percent. The categorical state percent of
growth for the budget year beginning July 1, 2024, is two and
one-half percent. The categorical state percent of growth
for each budget year shall be established by statute which
shall be enacted within thirty days of the transmission of the
governor’s budget required by February 1 under section 8.21
during the regular legislative session beginning in the base
year. The categorical state percent of growth may include
state percents of growth for the teacher salary supplement, the
professional development supplement, the early intervention
supplement, the teacher leadership supplement, and for budget
years beginning on or after July 1, 2020, transportation equity
aid payments under section 257.16C .
Sec. 49. Section 257.16B, subsections 1 and 2, Code 2024,
are amended to read as follows:
1. For each fiscal year beginning on or after July 1, 2021
2022 , there is appropriated from the general fund of the state
to the department of education an amount necessary to make all
school district property tax replacement payments under this
section , as calculated in subsection 2 .
2. a. For the budget year beginning July 1, 2021, the
department of management shall calculate for each school
district all of the following:
(1) The regular program state cost per pupil for the budget

House File 2612, p. 42
year beginning July 1, 2012, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the budget year beginning July
1, 2021.
(2) The regular program state cost per pupil for the budget
year beginning July 1, 2021, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the budget year beginning July
1, 2021.
(3) The amount of each school district’s property tax
replacement payment. Each school district’s property tax
replacement payment equals the school district’s weighted
enrollment for the budget year beginning July 1, 2021,
multiplied by the remainder of the amount calculated for
the school district under subparagraph (2) minus the amount
calculated for the school district under subparagraph (1).
b. a. (1) For the budget year beginning July 1, 2022,
the amount of each school district’s property tax replacement
payment shall be the product of the school district’s weighted
enrollment for the budget year multiplied by the per pupil
property tax replacement amount for the budget year calculated
under subparagraph (2).
(2) The per pupil property tax replacement amount for the
budget year beginning July 1, 2022, is equal to the sum of one
hundred fifty-three dollars plus the difference between the
following:
(a) The regular program state cost per pupil for the budget
year beginning July 1, 2022, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the budget year beginning July
1, 2022.
(b) The regular program state cost per pupil for the budget
year beginning July 1, 2021, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the budget year beginning July
1, 2022.
c. b. (1) For each the budget year beginning on or after
July 1, 2023, the amount of each school district’s property
tax replacement payment shall be the product of the school

House File 2612, p. 43
district’s weighted enrollment for the budget year multiplied
by the per pupil property tax replacement amount for the budget
year calculated under subparagraph (2).
(2) The per pupil property tax replacement amount for
the budget years year beginning on or after July 1, 2023, is
equal to the sum of one hundred fifty-three dollars plus the
difference between the following:
(a) The regular program state cost per pupil for the budget
year beginning July 1, 2023, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applicable budget year under
this paragraph beginning July 1, 2023 .
(b) The regular program state cost per pupil for the budget
year beginning July 1, 2021, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applicable budget year under
this paragraph beginning July 1, 2023 .
c. (1) For each budget year beginning on or after July
1, 2024, the amount of each school district’s property
tax replacement payment shall be the product of the school
district’s weighted enrollment for the budget year multiplied
by the per pupil property tax replacement amount for the budget
year calculated under subparagraph (2).
(2) The per pupil property tax replacement amount for budget
years beginning on or after July 1, 2024, is equal to the sum
of one hundred fifty-three dollars plus the difference between
the following:
(a) The regular program state cost per pupil for the budget
year beginning July 1, 2024, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applicable budget year under
this paragraph.
(b) The regular program state cost per pupil for the budget
year beginning July 1, 2021, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applicable budget year under
this paragraph.
Sec. 50. CODE SECTION 257.8 —— IMPLEMENTATION. The
requirements of section 257.8, subsections 1 and 2, regarding

House File 2612, p. 44
the enactment of bills establishing the state percent of growth
and the categorical state percent of growth within thirty
days of the transmission of the governor’s budget required by
February 1 under section 8.21 during the regular legislative
session beginning in the base year, do not apply to this
division of this Act.
Sec. 51. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION VII
EDUCATION SUPPORT PERSONNEL SALARY SUPPLEMENT
Sec. 52. EDUCATION SUPPORT PERSONNEL SALARY SUPPLEMENT ——
FY 2024-2025.
1. If funds are appropriated by the general assembly to the
department of education for the fiscal year beginning July 1,
2024, and ending June 30, 2025, to make all payments to school
districts required under subsection 2, such funds shall be used
to provide a funding supplement to each school district during
the fiscal year beginning July 1, 2024, and ending June 30,
2025, to supplement education support personnel compensation.
2. In order to receive the funding supplement, a school
district shall first report to the department of education
on or before July 1, 2024, the number of education support
personnel employed by the school district, including all
other information related to such personnel required by the
department of education. Each school district’s funding
supplement amount shall be equal to fourteen million dollars
multiplied by the quotient of the school district’s budget
enrollment for the budget year beginning July 1, 2023, and
ending June 30, 2024, divided by the statewide total budget
enrollment for the budget year beginning July 1, 2023, and
ending June 30, 2024. For purposes of this section, “education
support personnel” means regular and part-time employees of a
school district who are not salaried.
3. The payment of funding supplement amounts under this
section shall be paid by the department of education at the
same time and in the same manner as foundation aid is paid
under section 257.16 for the fiscal year beginning July 1,
2024, and ending June 30, 2025, and may be included in the

House File 2612, p. 45
monthly payment of state aid under section 257.16, subsection
2.
Sec. 53. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION VIII
STATE MANDATE
Sec. 54. IMPLEMENTATION OF ACT. Section 25B.2, subsection
3, shall not apply to this Act.
______________________________ ______________________________
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2612, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor