Relating to early childhood and family services, including the creation of an early childhood and family services system, state child care assistance for the child care workforce, making appropriations, and including effective date provisions

The ECFS system is established under the control of the department of health and human services (HHS) and ECFS districts (districts) are established for statewide implementation of primary prevention strategies and early intervention strategies for families and their children under years of age. The ECFS system must be administered in a manner that maximizes funding opportunities, interagency collaboration, and integration of activities and services that support positive outcomes for children and families. The bill details actions HHS must perform, to the extent funding is available, to develop and administer the ECFS system. The bill directs HHS to establish an ECFS district advisory council (council) in each district, and develop policies and procedures for the operational functions of the councils. A council shall consist of members appointed by HHS. The bill specifies individuals who are eligible for appointment, and the duties of a council. The bill specifies the duties of HHS related to data collection and use for the ECFS system. The bill requires HHS to maintain compliance with applicable federal and state privacy laws to ensure the confidentiality and integrity of individually identifiable data related to the ECFS system collected by HHS.106 (healthy opportunities for parents to experience success – healthy families Iowa (HOPES-HFI)) is placed in the new Code chapter and becomes part of the ECFS system. The bill specifies the requirements for the HOPES-HFI program and directs HHS to develop and administer the HOPES-HFI program, in whole or in part, by contracting with local organizations that use evidence-based home visiting models. The bill establishes an ECFS system fund (ECFS fund) consisting of moneys appropriated to HHS for the ECFS fund’s purposes by the general assembly and any other moneys available and obtained or accepted by HHS for deposit in the ECFS fund. Moneys in the ECFS fund are appropriated to HHS for the purposes of implementing and administering the ECFS system. Moneys appropriated that remain unencumbered or unobligated at the close of a fiscal year shall not revert to the general fund of the state, and interest or earnings on moneys in the fund shall be credited to the ECFS fund. The section of the division that establishes the ECFS fund takes effect upon enactment. All other sections in the division take effect July 1, 2027. DIVISION II —— DECATEGORIZATION INITIATIVE. The bill eliminates the decategorization initiative. DIVISION III —— CHILD ABUSE PREVENTION PROGRAM. The bill eliminates the child abuse prevention program, fund, and advisory committee. A taxpayer may still receive a nonrefundable reduction in the taxpayer’s income taxes for contributing one or more dollars to child abuse prevention, but the moneys received will be administered through the ECFS system instead of the child abuse prevention program fund. Funding for child abuse prevention and moneys in the current child abuse prevention fund are directed to the ECFS fund to be used by HHS for child abuse prevention. This division of the bill takes effect upon enactment. DIVISION IV —— TRANSITION PROVISIONS. The bill defines terms used in the division, including “transition period”, which means the period beginning on the date of enactment of the division and concluding on June 30, 2027. The bill allows HHS to exercise all policymaking functions and regulatory powers as necessary to establish the ECFS system during the transition period. The bill requires HHS to execute contracts as necessary to establish, implement, and administer the ECFS system; adopt necessary administrative rules; establish necessary policies and prepare necessary forms; prepare an ECFS state plan and develop ECFS district plans; develop plans for the transition of early childhood and family services to the ECFS system; ensure that individuals currently receiving ECFS system-related services under the purview of HHS or home visiting services provided through the initiative have uninterrupted continuity of care; submit a report to the general assembly no later than January 15, 2027, that details the administrative and operational costs to establish, implement, and administer the ECFS system; develop a plan to transition oversight and accountability for home visiting services currently funded by the early childhood Iowa initiative to the ECFS system; and work with a cohort of early childhood Iowa area directors and the early childhood Iowa state board to develop a plan to modernize the early childhood Iowa initiative. The bill requires HHS to request any federal waivers or authorizations (waivers) necessary to implement the ECFS system. Notwithstanding other effective dates stated in the bill, any provision of the bill HHS determines necessitates a waiver is effective upon receipt of the federal approval of the waiver. The bill provides that all debts, claims, or other liabilities owed to an early childhood Iowa area (area) or an area board due to home visiting services rendered pursuant to Code chapter 256I at the conclusion of the transition period shall remain due and owing after the transition period concludes. After the transition period concludes, all fiscal agents contracted with an area board shall assist collect outstanding debts, claims, or other liabilities owed to the areas or area boards for home visiting services provided or rendered before the transition period concluded. Reimbursement for allowable activities and services shall only be paid if accompanied by sufficient supporting documentation. With input from appropriate stakeholders, the bill requires HHS to identify each home visiting contract that will be impacted by the provisions relating to the ECFS system and the initiative. On or before June 30, 2027, each party to a contract identified by HHS shall exercise the option, if available pursuant to the terms of the contract, to terminate the contract. Contracts that do not provide for termination shall not be renewed or extended at the end of the current contract term. An area board, an area director, or any agent of an area or area board, and any subdivision of the state, shall not enter into, renew, or extend a home visiting services contract related to the initiative or related activities if the term period of the contract would extend, or the deliverables under the contract would be provided, beyond June 30, 2027. This division of the bill takes effect upon enactment. DIVISION V —— HEALTH AND HUMAN SERVICES DISTRICTS. The bill directs HHS to divide the state into health and human services districts (districts), as that term is defined in the bill, to be used by HHS for statewide delivery of programs and services. The initial district boundaries shall be the same as the behavioral health district boundaries, as the behavioral health district boundaries existed on July 1, 2025. HHS must review the designation of the districts at least once every seven consecutive fiscal years. The bill provides factors HHS must consider when modifying a district, and modification is not subject to judicial review. This division of the bill is