Bill Text: IA HF2324 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act providing education savings grants for certain pupils attending an accredited nonpublic school or receiving competent private instruction, establishing an education savings grant fund, making appropriations, providing penalties, and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-22 - Subcommittee, Chambers, Jorgensen, and Steckman. H.J. 319. [HF2324 Detail]
Download: Iowa-2011-HF2324-Introduced.html
House
File
2324
-
Introduced
HOUSE
FILE
2324
BY
LUKAN
A
BILL
FOR
An
Act
providing
education
savings
grants
for
certain
pupils
1
attending
an
accredited
nonpublic
school
or
receiving
2
competent
private
instruction,
establishing
an
education
3
savings
grant
fund,
making
appropriations,
providing
4
penalties,
and
including
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
12D.3,
subsection
1,
paragraph
a,
Code
1
2011,
is
amended
to
read
as
follows:
2
a.
Each
participation
agreement
may
require
a
participant
3
to
agree
to
invest
a
specific
amount
of
money
in
the
trust
4
for
a
specific
period
of
time
for
the
benefit
of
a
specific
5
beneficiary.
A
participant
shall
not
be
required
to
make
an
6
annual
contribution
on
behalf
of
a
beneficiary.
The
maximum
7
contribution
that
may
be
deducted
for
Iowa
income
tax
purposes
8
shall
not
exceed
two
thousand
dollars
per
beneficiary
per
year
9
adjusted
annually
to
reflect
increases
in
the
consumer
price
10
index.
A
contribution
to
an
account
that
is
the
result
of
a
11
transfer
from
an
account
in
the
education
savings
grant
fund
12
under
section
257.11B
shall
not
be
considered
a
contribution
13
that
may
be
deducted
for
Iowa
income
tax
purposes.
The
14
treasurer
of
state
shall
set
an
account
balance
limit
to
15
maintain
compliance
with
section
529
of
the
Internal
Revenue
16
Code.
A
contribution
shall
not
be
permitted
to
the
extent
it
17
causes
the
aggregate
balance
of
all
accounts
established
for
18
the
same
beneficiary
to
exceed
the
applicable
account
balance
19
limit.
20
Sec.
2.
Section
256.7,
Code
Supplement
2011,
is
amended
by
21
adding
the
following
new
subsection:
22
NEW
SUBSECTION
.
31.
Adopt
rules
relating
to
applications
23
for
an
education
savings
grant
pursuant
to
section
257.11B,
24
including
application
processing
timelines
and
information
25
required
to
be
submitted
by
a
parent
or
guardian.
26
Sec.
3.
Section
257.6,
subsection
1,
paragraph
a,
Code
2011,
27
is
amended
by
adding
the
following
new
subparagraph:
28
NEW
SUBPARAGRAPH
.
(8)
Resident
pupils
receiving
an
29
education
savings
grant
pursuant
to
section
257.11B
and
not
30
included
in
the
actual
enrollment
under
another
provision
of
31
this
paragraph.
32
Sec.
4.
NEW
SECTION
.
257.11B
Education
savings
grant
33
program.
34
1.
Pupils
eligible
to
enroll
in
grades
kindergarten
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through
twelve
and
attending
an
accredited
nonpublic
school
1
or
receiving
competent
private
instruction
under
chapter
299A
2
shall
be
eligible
to
receive
an
education
savings
grant
in
the
3
manner
provided
in
this
section
for
school
years
beginning
4
on
or
after
July
1,
2013.
Education
savings
grants
shall
be
5
available
for
disbursement
to
parents
and
guardians
for
the
6
payment
of
qualified
education
expenses
as
provided
in
this
7
section.
8
2.
a.
(1)
By
January
31
preceding
the
school
year
for
9
which
the
education
savings
grant
is
requested,
the
parent
10
or
guardian
of
the
pupil
requesting
to
receive
an
education
11
savings
grant
shall
submit
an
application
to
the
department
of
12
education,
on
application
forms
developed
by
the
department,
13
indicating
that
the
parent
or
guardian
intends
to
enroll
the
14
pupil
in
an
accredited
nonpublic
school
or
provide
competent
15
private
instruction
for
the
pupil
under
chapter
299A.
16
(2)
In
addition
to
such
information
deemed
appropriate
by
17
the
department
of
education,
the
application
shall
require
the
18
following
information:
19
(a)
Certification
from
the
accredited
nonpublic
school
20
of
the
pupil’s
enrollment
for
the
following
school
year
or
a
21
statement
indicating
the
parent
or
guardian’s
intent
to
provide
22
or
arrange
for
competent
private
instruction
for
the
pupil
for
23
the
following
school
year.
24
(b)
Certification
from
the
parent
or
guardian
of
the
pupil
25
that
an
account
has
been
established
in
the
pupil’s
name
in
the
26
Iowa
education
savings
plan
trust
pursuant
to
chapter
12D.
27
b.
By
March
1
preceding
the
school
year
for
which
the
28
education
savings
grant
is
requested,
the
department
of
29
education
shall
notify
the
department
of
management
of
the
30
number
of
pupils
in
each
school
district
designated
for
the
31
following
school
year
to
receive
an
education
savings
grant
32
and
the
amount
of
the
education
savings
grant
for
each
pupil.
33
The
department
of
education
shall
also
notify
the
parent
34
or
guardian
of
such
pupils
who
are
approved
to
receive
an
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education
savings
grant.
1
c.
Education
savings
grants
shall
only
be
approved
for
one
2
school
year
and
applications
must
be
submitted
under
paragraph
3
“a”
for
education
savings
grants
in
subsequent
school
years.
4
3.
a.
(1)
The
department
of
management
shall
assign
each
5
pupil
an
education
savings
grant
in
an
amount
equal
to
one
of
6
the
following:
7
(a)
For
pupils
that
meet
the
income
eligibility
requirement
8
for
free
and
reduced
price
meals
under
the
federal
National
9
School
Lunch
Act
and
the
federal
Child
Nutrition
Act
of
10
1966,
42
U.S.C.
§
1751-1785,
one
hundred
percent
of
the
11
state
foundation
aid
per
pupil
received
by
the
pupil’s
school
12
district
of
residence
in
the
same
school
year.
13
(b)
For
pupils
from
a
household
with
an
income
that
is
14
greater
than
the
income
eligibility
requirement
for
free
and
15
reduced
price
meals
under
the
federal
National
School
Lunch
16
Act
and
the
federal
Child
Nutrition
Act
of
1966,
42
U.S.C.
17
§
1751-1785,
but
that
is
less
than
one
hundred
fifty
percent
18
of
such
income
eligibility
requirement,
seventy-five
percent
19
of
the
state
foundation
aid
per
pupil
received
by
the
pupil’s
20
school
district
of
residence
in
the
same
school
year.
21
(c)
For
pupils
from
a
household
with
an
income
that
is
22
equal
to
or
greater
than
one
hundred
fifty
percent
of
the
23
income
eligibility
requirement
for
free
and
reduced
price
meals
24
under
the
federal
National
School
Lunch
Act
and
the
federal
25
Child
Nutrition
Act
of
1966,
42
U.S.C.
§
1751-1785,
but
that
26
is
less
than
two
hundred
percent
of
such
income
eligibility
27
requirement,
fifty
percent
of
the
state
foundation
aid
per
28
pupil
received
by
the
pupil’s
school
district
of
residence
in
29
the
same
school
year.
30
(d)
For
pupils
from
a
household
with
an
income
that
is
31
equal
to
or
greater
than
two
hundred
percent
of
the
income
32
eligibility
requirement
for
free
and
reduced
price
meals
under
33
the
federal
National
School
Lunch
Act
and
the
federal
Child
34
Nutrition
Act
of
1966,
42
U.S.C.
§
1751-1785,
but
that
is
less
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than
two
hundred
fifty
percent
of
such
income
eligibility
1
requirement,
twenty-five
percent
of
the
state
foundation
aid
2
per
pupil
received
by
the
pupil’s
school
district
of
residence
3
in
the
same
school
year.
4
(2)
The
department
of
management,
in
consultation
with
the
5
department
of
education,
shall
reduce
the
September
payment
6
to
the
pupil’s
school
district
of
residence
otherwise
payable
7
pursuant
to
section
257.16
for
the
school
budget
year
by
an
8
amount
equal
to
the
education
savings
grant
awarded
to
the
9
pupil
for
that
budget
year.
10
b.
The
department
of
management
shall
on
July
1
following
11
the
determination
of
the
amount
of
the
education
savings
grant
12
for
each
approved
pupil
transfer
such
amounts
to
the
pupil’s
13
account
in
the
Iowa
education
savings
grant
fund
established
14
under
subsection
4.
Such
amount
shall
be
available
for
15
disbursement
to
the
pupil’s
parent
or
guardian
for
the
payment
16
of
qualified
educational
expenses
incurred
by
such
persons
for
17
the
pupil
during
that
school
year.
18
4.
An
Iowa
education
savings
grant
fund
is
created
in
19
the
state
treasury
under
the
control
of
the
department
of
20
management
consisting
of
moneys
appropriated
to
the
department
21
for
the
purpose
of
providing
education
savings
grants
under
22
this
section.
For
the
fiscal
year
commencing
July
1,
2013,
and
23
each
succeeding
fiscal
year,
there
is
appropriated
from
the
24
general
fund
of
the
state
to
the
department
of
management
the
25
amount
necessary
to
pay
all
education
savings
grants
approved
26
for
that
fiscal
year.
The
director
of
the
department
of
27
management
has
all
powers
necessary
to
carry
out
and
effectuate
28
the
purposes,
objectives,
and
provisions
of
this
section
29
pertaining
to
the
fund,
including
the
power
to
do
all
of
the
30
following:
31
a.
Make
and
enter
into
contracts
necessary
for
the
32
administration
of
the
fund.
33
b.
Procure
insurance
against
any
loss
in
connection
with
the
34
assets
of
the
fund.
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c.
Make
disbursements
from
a
pupil’s
account
within
the
1
fund
to
the
pupil’s
parents
or
guardians
for
the
payment
of
2
qualified
educational
expenses.
3
d.
Make
transfers
to
pupils’
Iowa
education
savings
plan
4
trust
accounts
established
under
chapter
12D.
5
e.
Adopt
rules
pursuant
to
chapter
17A
for
the
6
administration
of
the
fund
and
accounts
within
the
fund.
7
5.
a.
For
each
pupil
approved
for
an
education
savings
8
grant,
the
department
shall
establish
an
account
for
that
pupil
9
in
the
education
savings
grant
fund.
The
amount
of
the
pupil’s
10
education
savings
grant
determined
under
subsection
3
shall
be
11
deposited
into
the
pupil’s
account
on
July
1
and
such
amount
12
shall
be
immediately
available
for
disbursement
to
parents
and
13
guardians
upon
filing
and
approval
of
claims
from
the
pupil’s
14
account
for
qualified
education
expenses
incurred
by
the
parent
15
or
guardian
for
the
pupil
during
that
fiscal
year.
16
b.
A
parent
or
guardian
of
a
pupil
may
on
forms
prescribed
17
by
the
department
of
management
submit
claims
for
disbursements
18
of
moneys
within
the
account.
The
department
may
by
rule
19
designate
the
appropriate
supporting
documentation
necessary
20
for
the
disbursement
of
moneys
in
an
account
including
but
not
21
limited
to
invoices
of
amounts
due
and
receipts
of
amounts
paid
22
for
qualified
education
expenses.
23
c.
The
department
of
management
shall
upon
conclusion
of
24
the
fiscal
year
and
disbursement
of
all
claims
submitted
by
25
a
parent
or
guardian
before
conclusion
of
the
fiscal
year
26
transfer
any
remaining
amounts
in
the
pupil’s
account
within
27
the
education
savings
grant
fund
to
the
pupil’s
Iowa
education
28
savings
plan
trust
account
pursuant
to
chapter
12D.
29
6.
For
purposes
of
this
section,
“qualified
educational
30
expense”
includes
tuition
and
fees
at
an
accredited
nonpublic
31
school,
textbooks,
payment
to
a
licensed
or
accredited
tutor,
32
curriculum
materials,
tuition
or
fees
for
nonpublic
online
33
education
programs,
education
materials
and
services
for
pupils
34
with
disabilities,
standardized
test
fees,
and
other
expenses
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incurred
by
the
parent
or
guardian
that
are
directly
related
to
1
the
education
of
the
pupil
at
an
accredited
nonpublic
school
or
2
directly
related
to
providing
competent
private
instruction
for
3
the
pupil
under
chapter
299A.
4
7.
A
person
who
makes
a
false
claim
for
the
purpose
of
5
obtaining
an
education
savings
grant
provided
for
in
this
6
section
or
who
knowingly
receives
the
grant
without
being
7
legally
entitled
to
it
is
guilty
of
a
fraudulent
practice.
The
8
false
claim
for
an
education
savings
grant
shall
be
disallowed
9
and
if
amounts
from
the
grant
have
been
disbursed
from
the
10
applicable
account
in
the
education
savings
grant
fund
or
11
transferred
to
an
Iowa
education
savings
plan
trust
account
12
under
chapter
12D,
the
department
of
management
shall
initiate
13
legal
proceedings
to
recover
such
amounts.
14
Sec.
5.
APPLICABILITY.
This
Act
applies
to
school
budget
15
years
and
fiscal
years
beginning
on
or
after
July
1,
2013.
16
EXPLANATION
17
This
bill
provides
education
savings
grants
for
certain
18
pupils
attending
an
accredited
nonpublic
school
or
receiving
19
competent
private
instruction
and
establishes
an
education
20
savings
grant
fund.
21
Under
the
bill,
pupils
eligible
to
enroll
in
grades
22
kindergarten
through
12
and
attending
an
accredited
nonpublic
23
school
or
receiving
competent
private
instruction
under
Code
24
chapter
299A
are
eligible
to
receive
an
education
savings
25
grant
for
school
years
beginning
on
or
after
July
1,
2013.
By
26
January
31
preceding
the
school
year
for
which
the
education
27
savings
grant
is
requested,
the
parent
or
guardian
of
the
pupil
28
requesting
to
receive
an
education
savings
grant
must
submit
an
29
application
to
the
department
of
education
indicating
that
the
30
parent
or
guardian
intends
to
enroll
the
pupil
in
an
accredited
31
nonpublic
school
or
provide
competent
private
instruction
for
32
the
pupil.
As
part
of
the
application,
the
parent
or
guardian
33
must
also
certify
that
an
account
for
the
pupil
has
been
34
established
in
the
Iowa
education
savings
plan
trust
pursuant
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to
Code
chapter
12D
(college
savings
Iowa
529
plan).
1
The
bill
requires
that
by
March
1
preceding
the
school
2
year
for
which
the
education
savings
grant
is
requested,
3
the
department
of
education
must
notify
the
department
of
4
management
of
the
number
of
pupils
in
each
school
district
5
designated
for
the
following
school
year
to
receive
an
6
education
savings
grant
and
the
amount
of
the
education
savings
7
grant
for
each
pupil.
Education
savings
grants
may
only
be
8
approved
for
one
school
year
and
applications
must
be
submitted
9
for
education
savings
grants
in
subsequent
school
years.
10
The
amount
of
each
education
savings
grant
is
determined
11
based
on
the
pupil’s
household
income.
For
pupils
that
12
meet
the
income
eligibility
requirement
for
free
and
reduced
13
price
meals,
the
grant
is
equal
to
100
percent
of
the
state
14
foundation
aid
per
pupil
received
by
the
pupil’s
school
15
district
of
residence
in
the
same
school
year.
For
household
16
incomes
greater
than
the
income
eligibility
requirement
for
17
free
and
reduced
price
meals
but
less
than
150
percent
of
18
such
income
eligibility
requirement,
the
grant
is
equal
to
75
19
percent
of
the
state
foundation
aid
per
pupil
received
by
the
20
pupil’s
school
district
of
residence
in
the
same
school
year.
21
For
household
incomes
equal
to
or
greater
than
150
percent
of
22
the
income
eligibility
requirement
for
free
and
reduced
price
23
meals,
but
less
than
200
percent
of
such
income
eligibility
24
requirement,
the
grant
is
equal
to
50
percent
of
the
state
25
foundation
aid
per
pupil
received
by
the
pupil’s
school
26
district
of
residence
in
the
same
school
year.
For
household
27
incomes
equal
to
or
greater
than
200
percent
of
the
income
28
eligibility
requirement
for
free
and
reduced
price
meals,
but
29
less
than
250
percent
of
such
income
eligibility
requirement,
30
the
grant
is
equal
to
25
percent
of
the
state
foundation
aid
31
per
pupil
received
by
the
pupil’s
school
district
of
residence
32
in
the
same
school
year.
33
The
bill
creates
an
Iowa
education
savings
grant
fund
in
34
the
state
treasury
under
the
control
of
the
department
of
35
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management
consisting
of
moneys
appropriated
to
the
department
1
for
the
purpose
of
providing
education
savings
grants.
For
2
the
fiscal
year
commencing
July
1,
2013,
and
each
succeeding
3
fiscal
year,
there
is
appropriated
from
the
general
fund
of
4
the
state
to
the
department
of
management
the
amount
necessary
5
to
pay
all
education
savings
grants
approved
for
that
fiscal
6
year.
For
each
pupil
approved
for
an
education
savings
grant,
7
the
department
of
management
must
establish
an
account
for
that
8
pupil
in
the
educational
savings
grant
fund.
The
amount
of
the
9
pupil’s
education
savings
grant
is
deposited
into
the
pupil’s
10
account
on
July
1
and
such
amount
is
available
for
disbursement
11
to
parents
and
guardians
upon
filing
and
approval
of
claims
12
from
the
pupil’s
account
for
qualified
education
expenses,
as
13
defined
in
the
bill,
incurred
by
the
parent
or
guardian
for
the
14
pupil
during
that
fiscal
year.
15
The
bill
requires
the
department
of
management
to,
upon
16
conclusion
of
the
fiscal
year
and
disbursement
of
all
claims
17
submitted
by
a
parent
or
guardian
before
conclusion
of
the
18
fiscal
year,
transfer
any
remaining
amounts
in
the
pupil’s
19
account
to
the
pupil’s
Iowa
education
savings
plan
trust
20
account.
However,
such
contributions
to
a
pupil’s
Iowa
21
education
savings
plan
trust
account
are
not
considered
22
contributions
that
may
be
deducted
for
Iowa
income
tax
purposes
23
under
Code
section
12D.3.
24
The
bill
provides
that
a
person
who
makes
a
false
claim
for
25
the
purpose
of
obtaining
an
education
savings
grant
or
who
26
knowingly
receives
the
grant
without
being
legally
entitled
27
to
it
is
guilty
of
a
fraudulent
practice
and
is
subject
to
a
28
criminal
penalty.
The
bill
allows
the
department
of
management
29
to
initiate
legal
proceedings
to
recover
grants
improperly
30
awarded
under
the
bill.
31
Pupils
receiving
an
education
savings
grant
under
the
bill
32
are
counted
in
the
actual
enrollment
for
the
pupil’s
school
33
district
of
residence,
however,
the
amount
of
the
grant
for
34
each
such
student
is
subtracted
from
the
amount
of
state
aid
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