Bill Text: IA HF2015 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act providing education scholarships for children of military parents attending a nonpublic school, creating a military family scholarship fund, making appropriations, providing penalties, and including applicability provisions.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2016-01-13 - Subcommittee, Dolecheck, Sieck, and Winckler. H.J. 75. [HF2015 Detail]
Download: Iowa-2015-HF2015-Introduced.html
House File 2015 - Introduced HOUSE FILE BY WILLS A BILL FOR 1 An Act providing education scholarships for children of 2 military parents attending a nonpublic school, creating a 3 military family scholarship fund, making appropriations, 4 providing penalties, and including applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5115YH (3) 86 md/sc PAG LIN 1 1 Section 1. Section 256.7, Code 2016, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 33. Adopt rules relating to applications 1 4 for a military family scholarship pursuant to section 257.11B, 1 5 including application processing timelines and information 1 6 required to be submitted by a parent or guardian. 1 7 Sec. 2. NEW SECTION. 257.11B Military family scholarship 1 8 program. 1 9 1. a. (1) The following pupils shall be eligible to 1 10 receive a military family scholarship in the manner provided in 1 11 this section: 1 12 (a) A dependent child of a qualified military person or 1 13 qualified veteran eligible to enroll in kindergarten through 1 14 grade twelve who resides in this state and is attending 1 15 a nonpublic school during the budget year for which the 1 16 scholarship is requested. 1 17 (b) A surviving child who is receiving dependency and 1 18 indemnity compensation pursuant to 38 U.S.C. {1301 et seq., as 1 19 certified by the United States department of veterans affairs, 1 20 who resides in this state and is attending a nonpublic school 1 21 during the budget year for which the scholarship is requested. 1 22 (2) For purposes of this section, unless the context 1 23 otherwise requires: 1 24 (a) "Dependent child" means an individual who was claimed by 1 25 a qualified military person or qualified veteran as a dependent 1 26 on the qualified military person's or qualified veteran's 1 27 internal revenue tax filing for the previous tax year. 1 28 (b) "Nonpublic school" means those nonpublic schools 1 29 accredited by the department of education as provided in 1 30 section 256.11 and nonpublic institutions that comply with 1 31 state board of education standards for providing special 1 32 education programs. 1 33 (c) "Qualified educational expenses" includes tuition and 1 34 fees at a nonpublic school, textbooks, fees or payments for 1 35 educational therapies including tutoring or cognitive skills 2 1 training, curriculum fees and materials for a course of study 2 2 for a specific subject matter or grade level, tuition or fees 2 3 for nonpublic online education programs, education materials 2 4 and services for pupils with disabilities including the cost of 2 5 paraprofessionals and assistants who are trained in accordance 2 6 with state law, and other expenses incurred by the parent or 2 7 guardian that are directly related to the education of the 2 8 pupil at a nonpublic school, including a nonpublic school 2 9 accredited by an independent accrediting agency approved by 2 10 the department of education. "Qualified educational expenses" 2 11 do not include transportation costs for the pupil, the cost 2 12 of food or refreshments consumed by the pupil, the cost of 2 13 clothing for the pupil, or the cost of disposable materials, 2 14 including but not limited to paper, notebooks, pencils, pens, 2 15 and art supplies. 2 16 (d) "Qualified military person" means a person on active 2 17 duty in the military service of the United States who is 2 18 stationed in this state or at the Rock Island arsenal. 2 19 (e) "Qualified veteran" means a veteran as defined in 2 20 section 35.1 and who is a person who is domiciled in this 2 21 state, or has resided in this state for at least one year 2 22 or sufficient time to have filed an Iowa tax return in the 2 23 preceding twelve months. 2 24 b. Military family scholarships shall be made available to 2 25 parents and guardians in the manner authorized under subsection 2 26 4, paragraph "c", for the payment of qualified educational 2 27 expenses as provided in this section. 2 28 2. a. (1) By January 31 preceding the school year for 2 29 which the military family scholarship is requested, the 2 30 parent or guardian of the pupil requesting to receive a 2 31 military family scholarship shall submit an application to the 2 32 department of education, on application forms developed by the 2 33 department, indicating that the parent or guardian intends to 2 34 enroll the pupil in a nonpublic school. 2 35 (2) In addition to such information deemed appropriate by 3 1 the department of education, the application shall require 3 2 certification from the nonpublic school of the pupil's 3 3 enrollment for the following school year. 3 4 b. By March 1 preceding the school year for which the 3 5 military family scholarship is requested, the department of 3 6 education shall notify the department of management of the 3 7 number of pupils in each school district designated for the 3 8 following school year to receive a military family scholarship. 3 9 The department of education shall also notify the parent or 3 10 guardian of such pupils who are approved to receive a military 3 11 family scholarship. 3 12 c. Military family scholarships shall only be approved 3 13 for one school year per application, and applications must be 3 14 submitted under paragraph "a" for military family scholarships 3 15 in subsequent school years. 3 16 3. a. The department of management shall assign each 3 17 pupil a military family scholarship in an amount equal to the 3 18 lesser of the regular program state cost per pupil and the 3 19 annual tuition at the nonpublic school that the pupil will be 3 20 attending in the same school year for which the scholarship is 3 21 requested. 3 22 b. The department of management shall on July 1 following 3 23 the determination of the amount of the military family 3 24 scholarship for each approved pupil transfer such amounts to 3 25 the pupil's account in the military family scholarship fund 3 26 established under subsection 4. Such amount shall be available 3 27 to the pupil's parent or guardian in the manner authorized 3 28 under subsection 4, paragraph "c", for the payment of qualified 3 29 educational expenses incurred by such persons for the pupil 3 30 during that school year. 3 31 4. A military family scholarship fund is created in 3 32 the state treasury under the control of the department of 3 33 management consisting of moneys appropriated to the department 3 34 for the purpose of providing military family scholarships 3 35 under this section. For the fiscal year commencing July 1, 4 1 2017, and each succeeding fiscal year, there is appropriated 4 2 from the general fund of the state to the department of 4 3 management to be credited to the fund the amount necessary to 4 4 pay all military family scholarships approved for that fiscal 4 5 year. The director of the department of management has all 4 6 powers necessary to carry out and effectuate the purposes, 4 7 objectives, and provisions of this section pertaining to the 4 8 fund, including the power to do all of the following: 4 9 a. Make and enter into contracts necessary for the 4 10 administration of the fund. 4 11 b. Procure insurance against any loss in connection with the 4 12 assets of the fund or require a surety bond. 4 13 c. Contract with a private financial management firm to 4 14 manage the fund, in collaboration with the treasurer of state, 4 15 including providing for the disbursement of military family 4 16 scholarships in the form of an electronic debit card or checks 4 17 that are payable directly from the pupil's account in the fund. 4 18 d. Conduct audits or other review necessary to properly 4 19 administer the program. 4 20 e. Adopt rules pursuant to chapter 17A for the 4 21 administration of the fund and accounts in the fund. 4 22 5. a. For each pupil approved for a military family 4 23 scholarship, the department shall establish an account for that 4 24 pupil in the military family scholarship fund. The amount 4 25 of the pupil's military family scholarship determined under 4 26 subsection 3 shall be deposited into the pupil's account on 4 27 July 1 and such amount shall be immediately available for the 4 28 payment of qualified educational expenses incurred by the 4 29 parent or guardian for the pupil during that fiscal year using 4 30 the payment method authorized under subsection 4, paragraph 4 31 "c". 4 32 b. A nonpublic school or other entity that accepts payment 4 33 from a parent or guardian using funds from a pupil's account in 4 34 the military family scholarship fund shall not refund, rebate, 4 35 or share any portion of such payment with the parent, guardian, 5 1 or pupil. 5 2 c. Moneys remaining in a pupil's account upon conclusion 5 3 of the fiscal year shall remain in the pupil's account in the 5 4 military family scholarship fund for the payment of qualified 5 5 educational expenses in future fiscal years, unless subject to 5 6 the transfer required under subsection 7. 5 7 6. A person who makes a false claim for the purpose of 5 8 obtaining a military family scholarship provided for in this 5 9 section or who knowingly receives the scholarship or makes a 5 10 payment from an account in the military family scholarship fund 5 11 without being legally entitled to it is guilty of a fraudulent 5 12 practice. The false claim for a military family scholarship or 5 13 a payment from an account shall be disallowed and if amounts 5 14 from the scholarship have been disbursed from the applicable 5 15 account in the military family scholarship fund, the department 5 16 of management shall initiate legal proceedings to recover such 5 17 amounts. A parent or guardian, or a pupil for purposes of 5 18 subsection 7, who violates this subsection 6 is prohibited from 5 19 participating in the military family scholarship program in the 5 20 future. 5 21 7. For each pupil with a positive balance in the pupil's 5 22 account in the military family scholarship fund upon graduation 5 23 from high school or upon termination of the pupil's enrollment 5 24 in the nonpublic school, moneys in the pupil's account shall be 5 25 transferred by the department for deposit in the general fund 5 26 of the state. 5 27 8. a. If a pupil fails to meet the academic growth 5 28 standards established by the state board of education under 5 29 paragraph "b" for two consecutive school years for which 5 30 the student has received a military family scholarship under 5 31 this section, the pupil shall not be eligible for a military 5 32 family scholarship for future school years unless the pupil is 5 33 enrolled in an alternative options education program adopted 5 34 by the school district where the pupil resides under section 5 35 280.19A. If the pupil meets the academic growth standards 6 1 established by the state board of education for two consecutive 6 2 school years while enrolled in the alternative options 6 3 education program, the pupil shall again be eligible for the 6 4 military family scholarship while attending an accredited 6 5 nonpublic school. 6 6 b. The state board of education shall adopt standards for 6 7 determining satisfactory academic performance and growth of 6 8 pupils in kindergarten through grade twelve who are receiving 6 9 military family scholarships. Such academic growth standards 6 10 shall include minimum levels of proficiency in the areas of 6 11 math, science, literacy, and social studies. 6 12 9. Except as necessary to implement the military family 6 13 scholarship program, this section shall not be construed to 6 14 authorize the state or any political subdivision of the state 6 15 to exercise authority over any nonpublic school or be construed 6 16 to require a nonpublic school to modify its admissions 6 17 educational program in order to receive payment from a parent 6 18 or guardian using funds from a pupil's account in the military 6 19 family scholarship fund. A nonpublic school that accepts 6 20 payment from a parent or guardian using funds from a pupil's 6 21 account in the military family scholarship fund is not an agent 6 22 of this state or of a political subdivision of this state. 6 23 Sec. 3. Section 422.7, Code 2016, is amended by adding the 6 24 following new subsection: 6 25 NEW SUBSECTION. 51. Subtract, to the extent included, the 6 26 amount of any military family scholarship under section 257.11B 6 27 received during the tax year by a taxpayer authorized to spend 6 28 such scholarship amounts for qualified educational expenses. 6 29 Sec. 4. APPLICABILITY. This Act applies to school budget 6 30 years and fiscal years beginning on or after July 1, 2017. 6 31 Sec. 5. APPLICABILITY. The provision of this Act amending 6 32 section 422.7 applies to tax years beginning on or after 6 33 January 1, 2017. 6 34 EXPLANATION 6 35 The inclusion of this explanation does not constitute agreement with 7 1 the explanation's substance by the members of the general assembly. 7 2 This bill provides military family scholarships for pupils 7 3 attending a nonpublic school and establishes a military family 7 4 scholarship fund. 7 5 Under the bill, the following pupils are eligible to receive 7 6 a military family scholarship: (1) a dependent child of a 7 7 qualified military person or qualified veteran, as defined in 7 8 the bill, eligible to enroll in kindergarten through grade 12 7 9 who resides in this state and who is attending a nonpublic 7 10 school during the budget year for which the scholarship is 7 11 requested; (2) a surviving child who is receiving dependency 7 12 and indemnity compensation and who resides in this state and is 7 13 attending a nonpublic school during the budget year for which 7 14 the scholarship is requested. By January 31 preceding the 7 15 school year for which the scholarship is requested, the parent 7 16 or guardian of the pupil requesting to receive a scholarship 7 17 must submit an application to the department of education 7 18 indicating that the parent or guardian intends to enroll the 7 19 pupil in a nonpublic school. 7 20 The bill requires that by March 1 preceding the school 7 21 year for which the military family scholarship is requested, 7 22 the department of education must notify the department of 7 23 management of the number of pupils in each school district 7 24 designated for the following school year to receive a military 7 25 family scholarship and the amount of the military family 7 26 scholarship for each pupil. Military family scholarships may 7 27 only be approved for one school year per application, and 7 28 applications must be submitted for military family scholarships 7 29 in subsequent school years. 7 30 The amount of each military family scholarship is equal to 7 31 the lesser of the regular program state cost per pupil and the 7 32 annual tuition at the nonpublic school that the pupil will be 7 33 attending in the same school year for which the scholarship is 7 34 requested. 7 35 The bill creates a military family scholarship fund in 8 1 the state treasury under the control of the department of 8 2 management consisting of moneys appropriated to the department 8 3 for the purpose of providing military family scholarships. For 8 4 the fiscal year commencing July 1, 2017, and each succeeding 8 5 fiscal year, there is appropriated from the general fund of the 8 6 state to the department of management for deposit in the fund 8 7 the amount necessary to pay all military family scholarships 8 8 approved for that fiscal year. For each pupil approved for 8 9 a military family scholarship, the department of management 8 10 must establish an account for that pupil in the military family 8 11 scholarship fund. The amount of the pupil's military family 8 12 scholarship is deposited into the pupil's account on July 1 8 13 and such amount is available for use by parents and guardians 8 14 for the payment of qualified educational expenses, as defined 8 15 in the bill, incurred by the parent or guardian for the pupil 8 16 during that fiscal year. 8 17 The bill defines "nonpublic school" to mean those nonpublic 8 18 schools accredited by the Iowa department of education 8 19 and nonpublic institutions that comply with state board of 8 20 education standards for providing special education programs. 8 21 The bill authorizes the department of education to contract 8 22 with a private financial management firm to manage the military 8 23 family scholarship fund, in collaboration with the treasurer 8 24 of state, including providing for the disbursement of military 8 25 family scholarships in the form of an electronic debit card 8 26 or checks that are payable directly from the pupil's account 8 27 within the fund. 8 28 The bill provides that moneys remaining in a pupil's account 8 29 upon the conclusion of the fiscal year shall remain in the 8 30 pupil's account within the military family scholarship fund for 8 31 the payment of qualified educational expenses in future fiscal 8 32 years. 8 33 Under the bill, for each pupil with a positive balance in the 8 34 pupil's account in the military family scholarship fund upon 8 35 graduation from high school or upon termination of the pupil's 9 1 enrollment in the nonpublic school, moneys in the pupil's 9 2 account are transferred by the department of management for 9 3 deposit in the general fund of the state. 9 4 The bill provides that a person who makes a false claim 9 5 for the purpose of obtaining a military family scholarship 9 6 or who knowingly receives the scholarship or makes a payment 9 7 from an account within the military family scholarship fund 9 8 without being legally entitled to it is guilty of a fraudulent 9 9 practice and is subject to a criminal penalty. The bill allows 9 10 the department of management to initiate legal proceedings to 9 11 recover scholarships and amounts improperly awarded or paid 9 12 from accounts under the bill. 9 13 The bill authorizes the state board of education to adopt 9 14 standards for determining satisfactory academic performance 9 15 and growth of pupils in kindergarten through grade 12 who are 9 16 receiving military family scholarships. If a pupil fails to 9 17 meet the academic growth standards established by the state 9 18 board of education for two consecutive school years for which 9 19 the student has received a military family scholarship, the 9 20 pupil shall not be eligible for a military family scholarship 9 21 for future school years until the pupil has demonstrated 9 22 satisfactory academic performance in an alternative options 9 23 education program. 9 24 The bill provides that, except as necessary to implement 9 25 the military family scholarship program, the bill is not to be 9 26 construed to authorize the state or any political subdivision 9 27 of the state to exercise authority over any nonpublic school 9 28 or be construed to require a nonpublic school to modify its 9 29 admissions educational program in order to receive payment 9 30 from a parent or guardian using funds from a pupil's account 9 31 in the military family scholarship fund. In addition, 9 32 a nonpublic school that accepts payment from a parent or 9 33 guardian using funds from a pupil's account in the military 9 34 family scholarship fund is not an agent of this state or of a 9 35 political subdivision of this state. 10 1 The bill provides that moneys from a military family 10 2 scholarship under the bill are not taxable income under Code 10 3 chapter 422. 10 4 The bill applies to school budget years and fiscal years 10 5 beginning on or after July 1, 2017. 10 6 The provision of the bill amending Code section 422.7 10 7 applies to tax years beginning on or after January 1, 2017. LSB 5115YH (3) 86 md/sc
