Bill Text: IA HF398 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act establishing an education scholarship account program for pupils attending a nonpublic school or receiving private instruction, establishing an education scholarship account fund, providing an income tax exemption, making appropriations, providing penalties, and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-02-08 - Introduced, referred to Education. H.J. 304. [HF398 Detail]
Download: Iowa-2021-HF398-Introduced.html
House
File
398
-
Introduced
HOUSE
FILE
398
BY
SHIPLEY
A
BILL
FOR
An
Act
establishing
an
education
scholarship
account
program
1
for
pupils
attending
a
nonpublic
school
or
receiving
2
private
instruction,
establishing
an
education
scholarship
3
account
fund,
providing
an
income
tax
exemption,
making
4
appropriations,
providing
penalties,
and
including
5
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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398
Section
1.
Section
8.6,
Code
2021,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
17.
Education
scholarship
applications.
To
3
adopt
rules
relating
to
applications
for
an
education
4
scholarship
pursuant
to
section
257.11B,
including
application
5
processing
timelines
and
information
required
to
be
submitted
6
by
a
parent
or
guardian.
7
Sec.
2.
NEW
SECTION
.
257.11B
Education
scholarship
account
8
program.
9
1.
a.
For
the
school
budget
year
beginning
July
1,
2022,
10
and
each
succeeding
school
budget
year,
resident
pupils
11
eligible
to
enroll
in
kindergarten
through
grade
twelve
and
who
12
are
attending
a
nonpublic
school,
as
defined
in
section
285.16,
13
or
receiving
private
instruction,
and
who
are
not
otherwise
14
ineligible
under
this
section,
shall
be
eligible
to
receive
an
15
education
scholarship
in
the
manner
provided
in
this
section.
16
b.
For
purposes
of
this
section:
17
(1)
“Private
instruction”
means
competent
private
18
instruction
or
independent
private
instruction
as
defined
in
19
section
299A.1,
subsection
2.
20
(2)
“Resident”
means
the
same
as
defined
in
section
282.1,
21
subsection
2.
22
2.
a.
By
January
31
preceding
the
school
year
for
which
23
the
education
scholarship
is
requested,
the
parent
or
guardian
24
of
the
pupil
requesting
to
receive
an
education
scholarship
25
shall
submit
an
application
to
the
department
of
management,
on
26
application
forms
developed
by
the
department
of
management,
27
indicating
that
the
parent
or
guardian
intends
to
enroll
the
28
pupil
in
a
nonpublic
school
or
place
the
pupil
under
private
29
instruction.
30
(1)
In
addition
to
such
information
deemed
appropriate
by
31
the
department
of
management,
the
application
shall
require
32
certification
from
the
nonpublic
school
of
the
pupil’s
33
enrollment
for
the
applicable
school
year
or
a
statement
from
34
the
intended
provider
of
private
instruction
for
the
pupil
for
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the
applicable
school
year.
1
(2)
Applications
submitted
for
pupils,
other
than
those
2
eligible
to
enroll
in
kindergarten,
shall
include
evidence
3
of
the
pupil’s
completion
and
performance
on
each
statewide
4
assessment
administered
to
the
pupil
required
by
the
pupil’s
5
nonpublic
school
or,
for
pupils
receiving
private
instruction,
6
that
the
parent
or
guardian
has
satisfied
the
provisions
7
of
section
299A.3.
To
receive
an
education
scholarship,
8
completion
of
all
reports
and
evaluations
described
under
9
section
299A.3
is
required
for
each
pupil
receiving
private
10
instruction.
11
b.
By
March
1
preceding
the
school
year
for
which
the
12
education
scholarship
is
requested,
the
department
of
13
management
shall
notify
the
parent
or
guardian
of
each
pupil
14
approved
for
the
following
school
year
to
receive
an
education
15
scholarship
and
the
amount
of
the
education
scholarship
for
the
16
pupil.
17
c.
Education
scholarships
shall
only
be
approved
for
one
18
school
year
and
applications
must
be
submitted
annually
for
19
education
scholarships
in
subsequent
school
years.
20
3.
The
department
of
management
shall
assign
each
pupil
an
21
education
scholarship
in
an
amount
equal
to
the
regular
program
22
state
cost
per
pupil
for
the
same
school
year.
23
4.
An
education
scholarship
account
fund
is
created
24
in
the
state
treasury
under
the
control
of
the
department
25
of
management
consisting
of
moneys
appropriated
to
the
26
department
of
management
for
the
purpose
of
providing
27
education
scholarships
under
this
section.
For
the
fiscal
28
year
commencing
July
1,
2022,
and
each
succeeding
fiscal
year,
29
there
is
appropriated
from
the
general
fund
of
the
state
to
the
30
department
of
management
to
be
credited
to
the
fund
the
amount
31
necessary
to
pay
all
education
scholarships
approved
for
that
32
fiscal
year.
The
director
of
the
department
of
management
has
33
all
powers
necessary
to
carry
out
and
effectuate
the
purposes,
34
objectives,
and
provisions
of
this
section
pertaining
to
the
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fund,
including
the
power
to
do
all
of
the
following:
1
a.
Make
and
enter
into
contracts
necessary
for
the
2
administration
of
the
fund.
3
b.
Procure
insurance
against
any
loss
in
connection
with
the
4
assets
of
the
fund
or
require
a
surety
bond.
5
c.
Contract
with
a
private
financial
management
firm
6
to
manage
the
fund,
in
collaboration
with
the
treasurer
of
7
state,
including
providing
for
the
disbursement
of
education
8
scholarships
in
the
form
of
an
electronic
debit
card
or
checks
9
that
are
payable
directly
from
the
pupil’s
account
within
the
10
fund.
11
d.
Conduct
audits
or
other
reviews
necessary
to
properly
12
administer
the
program.
13
e.
Adopt
rules
under
chapter
17A
for
the
administration
of
14
the
fund
and
accounts
within
the
fund.
15
5.
a.
For
each
pupil
approved
for
an
education
scholarship,
16
the
department
of
management
shall
establish
an
account
17
for
that
pupil
in
the
education
scholarship
account
fund.
18
Unless
already
made
available
to
the
parent
or
guardian
under
19
paragraph
“b”
,
the
amount
of
the
pupil’s
education
scholarship
20
shall
be
deposited
into
the
pupil’s
account
on
July
1,
and
such
21
amount
shall
be
immediately
available
to
the
parent
or
guardian
22
for
the
payment
of
qualified
educational
expenses
incurred
23
by
the
parent
or
guardian
for
the
pupil
during
that
fiscal
24
year
using
the
payment
method
authorized
under
subsection
4,
25
paragraph
“c”
.
26
b.
Upon
written
request
of
the
parent
or
guardian,
the
27
amount
of
the
pupil’s
education
scholarship
shall
be
deposited
28
into
the
pupil’s
account
and
be
made
available
as
soon
as
29
practicable
after
the
department
of
management
provides
notice
30
under
subsection
2,
paragraph
“b”
,
if
qualified
educational
31
expenses
for
the
pupil
for
the
applicable
school
year
are
due
32
prior
to
July
1
of
the
school
year.
33
c.
A
nonpublic
school
or
a
provider
of
private
instruction
34
that
accepts
payment
from
a
parent
or
guardian
using
funds
from
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a
pupil’s
account
in
the
education
scholarship
account
fund
1
shall
not
refund,
rebate,
or
share
any
portion
of
such
payment
2
with
the
parent,
guardian,
or
pupil.
3
d.
Moneys
remaining
in
a
pupil’s
account
upon
conclusion
4
of
the
fiscal
year
shall
remain
in
the
pupil’s
account
in
the
5
education
scholarship
account
fund
for
the
payment
of
qualified
6
educational
expenses
in
future
fiscal
years
during
which
the
7
pupil
participates
in
the
program
or
for
payment
to
the
pupil
8
as
provided
under
subsection
8.
9
6.
For
purposes
of
this
section,
“qualified
educational
10
expenses”
includes
tuition
and
fees
at
a
nonpublic
school,
11
textbooks,
fees
or
payments
for
educational
therapies,
12
including
tutoring
or
cognitive
skills
training,
curriculum
13
fees
and
materials
for
a
course
of
study
for
a
specific
subject
14
matter
or
grade
level,
tuition
or
fees
for
nonpublic
online
15
education
programs,
education
materials
and
services
for
pupils
16
with
disabilities,
including
the
cost
of
paraprofessionals
17
and
assistants
who
are
trained
in
accordance
with
state
law,
18
standardized
test
fees,
and
other
expenses
incurred
by
the
19
parent
or
guardian
that
are
directly
related
to
the
educational
20
enrichment
or
personal
fulfillment
of
the
pupil
under
private
21
instruction
or
at
an
accredited
nonpublic
school.
22
7.
A
person
who
makes
a
false
claim
for
the
purpose
of
23
obtaining
an
education
scholarship
provided
for
in
this
24
section
or
who
knowingly
receives
the
scholarship
or
makes
25
a
payment
from
an
account
within
the
education
scholarship
26
account
fund
without
being
legally
entitled
to
do
so
is
guilty
27
of
a
fraudulent
practice
under
chapter
714.
The
false
claim
28
for
an
education
scholarship
or
a
payment
from
an
account
29
shall
be
disallowed.
If
amounts
from
the
scholarship
have
30
been
disbursed
from
the
applicable
account
in
the
education
31
scholarship
account
fund,
the
department
of
management
shall
32
initiate
legal
proceedings
to
recover
such
amounts.
A
parent
33
or
guardian
who
commits
a
fraudulent
practice
under
this
34
subsection
is
prohibited
from
participating
in
the
education
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scholarship
program
in
the
future.
1
8.
a.
For
each
pupil
with
a
positive
balance
in
the
2
pupil’s
account
in
the
education
scholarship
account
fund
upon
3
graduation
from
high
school
or
completion
of
an
equivalent
4
level
of
private
instruction,
the
department
of
management
5
shall
pay
such
amount
from
the
pupil’s
account
to
the
6
pupil
within
thirty
days
of
the
graduation
or
completion
of
7
instruction
or
the
pupil’s
eighteenth
birthday,
whichever
8
is
later.
If,
however,
the
pupil
becomes
ineligible
under
9
this
section
prior
to
graduation
or
completion
of
private
10
instruction
or
fails
to
graduate
or
complete
private
11
instruction
by
the
pupil’s
twentieth
birthday,
the
department
12
of
management
shall
close
the
pupil’s
account
and
transfer
any
13
such
remaining
amount
to
the
general
fund
of
the
state.
14
b.
For
each
pupil
who
graduates
from
high
school
or
15
completes
an
equivalent
level
of
private
instruction
prior
to
16
the
pupil’s
seventeenth
birthday,
the
department
of
management
17
shall
deposit
in
the
pupil’s
account
in
the
education
18
scholarship
account
fund
an
amount
equal
to
the
regular
program
19
state
cost
per
pupil
for
the
applicable
school
budget
year
20
for
each
full
school
budget
year
between
the
pupil’s
date
of
21
graduation
from
high
school
or
completion
of
an
equivalent
22
level
of
private
instruction
and
the
pupil’s
eighteenth
23
birthday.
24
9.
This
section
shall
not
be
construed
to
authorize
the
25
state
or
any
political
subdivision
of
the
state
to
exercise
26
authority
over
any
nonpublic
school
or
private
instruction
27
provider
or
construed
to
require
a
nonpublic
school
or
private
28
instruction
provider
to
modify
its
academic
standards
for
29
admission
or
educational
program
in
order
to
receive
payment
30
from
a
parent
or
guardian
using
funds
from
a
pupil’s
account
31
in
the
education
scholarship
account
fund.
A
nonpublic
school
32
that
accepts
payment
from
a
parent
or
guardian
using
funds
from
33
a
pupil’s
account
in
the
education
scholarship
account
fund
34
is
not
an
agent
of
this
state
or
of
a
political
subdivision
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of
this
state.
Rules
adopted
by
the
department
of
management
1
to
implement
this
section
that
impose
an
undue
burden
on
a
2
nonpublic
school
are
invalid.
3
Sec.
3.
Section
422.7,
Code
2021,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
48.
Subtract,
to
the
extent
included,
6
the
amount
of
an
education
scholarship
under
section
257.11B
7
received
by
the
taxpayer
for
payment
of
qualified
educational
8
expenses
or
paid
to
the
taxpayer
under
section
257.11B,
9
subsection
8.
10
Sec.
4.
APPLICABILITY.
The
following
applies
to
school
11
budget
years
and
fiscal
years
beginning
on
or
after
July
1,
12
2022:
13
The
section
of
this
Act
enacting
section
257.11B.
14
Sec.
5.
APPLICABILITY.
The
following
applies
to
tax
years
15
beginning
on
or
after
January
1,
2022:
16
The
section
of
this
Act
enacting
section
422.7,
subsection
17
48.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
provides
education
scholarships
for
pupils
22
attending
a
nonpublic
school
or
receiving
private
instruction
23
and
establishes
an
education
scholarship
account
fund.
24
Under
the
bill,
pupils
who
are
eligible
to
enroll
in
25
kindergarten
through
grade
12
and
who
attend
a
nonpublic
school
26
or
are
placed
under
private
instruction
under
Code
chapter
299A
27
are
eligible
to
receive
an
education
scholarship.
The
parent
28
or
guardian
of
the
pupil
requesting
to
receive
an
education
29
scholarship
must
submit
an
application
to
the
department
of
30
management
indicating
that
the
parent
or
guardian
intends
to
31
enroll
the
pupil
in
a
nonpublic
school
or
provide
private
32
instruction.
To
receive
an
education
scholarship,
completion
33
of
all
reports
and
evaluations
under
Code
section
299A.3
is
34
required
for
each
pupil
receiving
private
instruction.
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The
bill
requires
that
by
March
1
preceding
the
school
1
year
for
which
the
education
scholarship
is
requested,
the
2
department
of
management
must
notify
the
parent
or
guardian
of
3
each
pupil
approved
for
the
following
school
year
to
receive
an
4
education
scholarship
and
the
amount
of
the
scholarship
for
the
5
pupil.
Education
scholarships
must
be
approved
for
each
school
6
year
and
applications
must
be
submitted
each
year.
7
The
amount
of
the
education
scholarship
is
equal
to
the
8
regular
program
state
cost
per
pupil
for
the
same
school
budget
9
year.
10
The
bill
creates
an
education
scholarship
fund
in
the
state
11
treasury
under
the
control
of
the
department
of
management
12
consisting
of
moneys
appropriated
to
the
department
of
13
management
for
the
purpose
of
providing
education
scholarships.
14
For
the
fiscal
year
commencing
July
1,
2022,
and
each
15
succeeding
fiscal
year,
there
is
appropriated
from
the
16
general
fund
of
the
state
to
the
department
of
management
for
17
deposit
in
the
fund
the
amount
necessary
to
pay
all
education
18
scholarships
approved
for
that
fiscal
year.
For
each
pupil
19
approved
for
an
education
scholarship,
the
department
of
20
management
must
establish
an
account
for
that
pupil
in
the
21
education
scholarship
account
fund.
The
amount
of
the
pupil’s
22
education
scholarship
is
deposited
into
the
pupil’s
account
23
on
July
1
and
such
amount
is
available
for
use
by
parents
and
24
guardians
for
the
payment
of
qualified
educational
expenses,
as
25
defined
in
the
bill,
incurred
by
the
parent
or
guardian
for
the
26
pupil
during
that
fiscal
year.
27
Upon
written
request
of
the
parent
or
guardian,
the
amount
of
28
the
pupil’s
education
scholarship
shall
be
deposited
into
the
29
pupil’s
account
and
be
made
available
as
soon
as
practicable
30
after
the
notice
of
receipt
of
the
scholarship
is
given
to
the
31
parent
or
guardian
if
qualified
educational
expenses
for
the
32
pupil
for
the
applicable
school
year
are
due
prior
to
July
1
of
33
the
school
year.
34
The
bill
authorizes
the
department
of
management
to
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contract
with
a
private
financial
management
firm
to
manage
the
1
education
scholarship
account
fund,
in
collaboration
with
the
2
treasurer
of
state,
including
providing
for
the
disbursement
of
3
education
scholarships
in
the
form
of
an
electronic
debit
card
4
or
checks
that
are
payable
directly
from
the
pupil’s
account
5
within
the
fund.
6
The
bill
provides
that
moneys
remaining
in
a
pupil’s
account
7
upon
the
conclusion
of
the
fiscal
year
shall
remain
in
the
8
pupil’s
account
in
the
education
scholarship
fund
for
the
9
payment
of
qualified
educational
expenses
in
future
fiscal
10
years
during
which
the
pupil
participates
in
the
program
or
for
11
payment
to
the
pupil
as
authorized
in
the
bill.
12
Under
the
bill,
for
each
pupil
with
a
positive
balance
in
the
13
pupil’s
account
upon
graduation
from
high
school
or
completion
14
of
an
equivalent
level
of
private
instruction,
the
department
15
of
management
is
required
to
pay
such
amount
to
the
pupil
based
16
on
timelines
established
in
the
bill.
For
each
pupil
who
17
graduates
from
high
school
or
completes
an
equivalent
level
18
of
private
instruction
while
participating
in
the
education
19
scholarship
account
program
prior
to
the
pupil’s
seventeenth
20
birthday,
the
department
of
management
shall
deposit
in
the
21
pupil’s
account
in
the
education
scholarship
fund
an
amount
22
equal
to
the
regular
program
state
cost
per
pupil
for
the
23
applicable
school
budget
year
for
each
full
school
budget
24
year
between
the
pupil’s
date
of
graduation
from
high
school
25
or
completion
of
an
equivalent
level
of
private
instruction
26
and
the
pupil’s
eighteenth
birthday.
If,
however,
the
pupil
27
becomes
ineligible
for
the
program
prior
to
graduation
or
28
completion
of
private
instruction
or
fails
to
graduate
or
29
complete
private
instruction
by
the
pupil’s
twentieth
birthday,
30
the
department
of
management
shall
close
the
pupil’s
account
31
and
transfer
any
such
remaining
amount
to
the
general
fund
of
32
the
state.
33
The
bill
provides
that
a
person
who
makes
a
false
claim
34
for
the
purpose
of
obtaining
an
education
scholarship
or
who
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knowingly
receives
the
scholarship
or
makes
a
payment
from
an
1
account
within
the
fund
without
being
legally
entitled
to
do
so
2
is
guilty
of
a
fraudulent
practice
and
is
subject
to
a
criminal
3
penalty.
The
bill
allows
the
department
of
management
to
4
initiate
legal
proceedings
to
recover
scholarships
and
amounts
5
improperly
awarded
or
paid
from
accounts.
6
The
bill
provides
that
an
education
scholarship
received
7
by
a
taxpayer
or
amounts
paid
to
the
pupil
are
not
taxable
8
income
for
purposes
of
state
individual
income
taxation.
This
9
provision
of
the
bill
applies
to
tax
years
beginning
on
or
10
after
January
1,
2022.
11
The
section
of
the
bill
enacting
the
education
savings
12
account
program
applies
to
school
budget
years
and
fiscal
years
13
beginning
on
or
after
July
1,
2022.
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