Bill Text: IA HSB1 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to education programs and funding by establishing an education savings account program, modifying certain school district categorical funding supplements, making appropriations, providing penalties, and including effective date and retroactive applicability provisions.(See HF 68.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-01-18 - Committee report approving bill, renumbered as HF68. [HSB1 Detail]
Download: Iowa-2023-HSB1-Introduced.html
House
Study
Bill
1
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
GOVERNOR
BILL)
A
BILL
FOR
An
Act
relating
to
education
programs
and
funding
by
1
establishing
an
education
savings
account
program,
modifying
2
certain
school
district
categorical
funding
supplements,
3
making
appropriations,
providing
penalties,
and
including
4
effective
date
and
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
SHORT
TITLE
2
Section
1.
SHORT
TITLE.
This
Act
shall
be
known
and
may
be
3
cited
as
the
“Students
First
Act”.
4
DIVISION
II
5
EDUCATION
SAVINGS
ACCOUNT
PROGRAM
6
Sec.
2.
Section
256.9,
Code
2023,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
66.
Adopt
rules
relating
to
the
9
administration
of,
and
applications
for,
the
education
savings
10
account
program
pursuant
to
section
257.11B,
including
but
not
11
limited
to
application
processing
timelines
and
information
12
required
to
be
submitted
by
a
parent
or
guardian.
13
Sec.
3.
Section
257.10,
subsection
9,
paragraph
c,
14
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
15
(1)
The
unadjusted
teacher
salary
supplement
district
cost
16
is
the
teacher
salary
supplement
district
cost
per
pupil
for
17
each
school
district
for
a
budget
year
multiplied
by
the
sum
18
of
the
budget
enrollment
for
that
school
district
plus
the
19
number
of
resident
pupils
in
the
school
district
that
received
20
an
education
savings
account
payment
under
section
257.11B
for
21
the
base
year
.
22
Sec.
4.
Section
257.10,
subsection
10,
paragraph
c,
23
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
24
(1)
The
unadjusted
professional
development
supplement
25
district
cost
is
the
professional
development
supplement
26
district
cost
per
pupil
for
each
school
district
for
a
budget
27
year
multiplied
by
the
sum
of
the
budget
enrollment
for
that
28
school
district
plus
the
number
of
resident
pupils
in
the
29
school
district
that
received
an
education
savings
account
30
payment
under
section
257.11B
for
the
base
year
.
31
Sec.
5.
Section
257.10,
subsection
11,
paragraph
c,
32
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
33
(1)
The
unadjusted
early
intervention
supplement
district
34
cost
is
the
early
intervention
supplement
district
cost
per
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pupil
for
each
school
district
for
a
budget
year
multiplied
1
by
the
sum
of
the
budget
enrollment
for
that
school
district
2
plus
the
number
of
resident
pupils
in
the
school
district
that
3
received
an
education
savings
account
payment
under
section
4
257.11B
for
the
base
year
.
5
Sec.
6.
Section
257.10,
subsection
12,
paragraph
c,
6
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
7
(1)
The
unadjusted
teacher
leadership
supplement
district
8
cost
is
the
teacher
leadership
supplement
district
cost
per
9
pupil
for
each
school
district
for
a
budget
year
multiplied
10
by
the
sum
of
the
budget
enrollment
for
that
school
district
11
plus
the
number
of
resident
pupils
in
the
school
district
that
12
received
an
education
savings
account
payment
under
section
13
257.11B
for
the
base
year
.
14
Sec.
7.
NEW
SECTION
.
257.11B
Education
savings
account
15
program.
16
1.
For
purposes
of
this
section:
17
a.
“Nonpublic
school”
means
the
same
as
defined
in
section
18
285.16.
19
b.
(1)
“Qualified
educational
expenses”
includes
tuition
20
and
fees
at
a
nonpublic
school,
textbooks,
fees
or
payments
for
21
educational
therapies,
including
tutoring
or
cognitive
skills
22
training,
curriculum
fees,
software,
and
materials
for
a
course
23
of
study
for
a
specific
subject
matter
or
grade
level,
tuition
24
or
fees
for
nonpublic
online
education
programs,
tuition
for
25
vocational
and
life
skills
education
approved
by
the
department
26
of
education,
education
materials
and
services
for
pupils
with
27
disabilities
from
an
accredited
provider,
including
the
cost
of
28
paraprofessionals
and
assistants
who
are
trained
in
accordance
29
with
state
law,
standardized
test
fees,
and
advanced
placement
30
examinations
or
examinations
related
to
postsecondary
education
31
admission
or
credentialing.
32
(2)
“Qualified
educational
expenses”
shall
be
limited
to
33
the
items
described
in
subparagraph
(1)
and
rules
adopted
34
by
the
department
to
implement
this
section
and
does
not
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include
transportation
costs
for
the
pupil,
the
cost
of
food
1
or
refreshments
consumed
by
the
pupil,
the
cost
of
clothing
2
for
the
pupil,
or
the
cost
of
disposable
materials,
including
3
but
not
limited
to
paper,
notebooks,
pencils,
pens,
and
art
4
supplies.
5
c.
“Resident”
means
the
same
as
defined
in
section
282.1,
6
subsection
2.
7
2.
a.
(1)
For
the
school
budget
year
beginning
July
8
1,
2023,
the
following
pupils
who
attend
a
nonpublic
school
9
for
that
school
budget
year
shall
be
eligible
to
receive
an
10
education
savings
account
payment:
11
(a)
A
resident
pupil
who
is
eligible
to
enroll
in
12
kindergarten.
13
(b)
A
resident
pupil
who
is
eligible
to
enroll
in
grades
one
14
through
twelve
and
was
not
enrolled
in
a
nonpublic
school
for
15
the
school
year
immediately
preceding
the
school
year
for
which
16
the
education
savings
account
payment
is
requested.
17
(c)
A
resident
pupil
who
is
eligible
to
enroll
in
grades
18
one
through
twelve
and
was
enrolled
in
a
nonpublic
school
year
19
immediately
preceding
the
school
year
for
which
the
education
20
savings
account
payment
is
requested
if
the
pupil’s
household
21
has
an
annual
income
less
than
or
equal
to
three
hundred
22
percent
of
the
most
recently
revised
poverty
income
guidelines
23
published
by
the
United
States
department
of
health
and
human
24
services.
25
(2)
For
the
school
budget
year
beginning
July
1,
2024,
the
26
following
pupils
who
attend
a
nonpublic
school
for
that
school
27
budget
year
shall
be
eligible
to
receive
an
education
savings
28
account
payment:
29
(a)
A
resident
pupil
who
is
eligible
to
enroll
in
30
kindergarten.
31
(b)
A
resident
pupil
who
is
eligible
to
enroll
in
grades
one
32
through
twelve
and
was
not
enrolled
in
a
nonpublic
school
for
33
the
school
year
immediately
preceding
the
school
year
for
which
34
the
education
savings
account
payment
is
requested.
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(c)
A
resident
pupil
who
is
eligible
to
enroll
in
grades
one
1
through
twelve
and
was
enrolled
in
a
nonpublic
school
for
the
2
school
year
immediately
preceding
the
school
year
for
which
the
3
education
savings
account
payment
is
requested
if
the
pupil’s
4
household
has
an
annual
income
less
than
or
equal
to
four
5
hundred
percent
of
the
most
recently
revised
poverty
income
6
guidelines
published
by
the
United
States
department
of
health
7
and
human
services.
8
(d)
A
resident
pupil
who
received
an
education
savings
9
account
payment
in
the
immediately
preceding
school
budget
10
year.
11
(3)
For
school
budget
years
beginning
on
or
after
July
12
1,
2025,
resident
pupils
eligible
to
enroll
in
kindergarten
13
through
grade
twelve
who
attend
a
nonpublic
school
for
the
14
applicable
school
budget
year
shall
be
eligible
to
receive
an
15
education
savings
account
payment.
16
b.
Education
savings
account
payments
shall
be
made
17
available
to
parents
and
guardians
in
the
manner
authorized
18
under
subsection
5
for
the
payment
of
qualified
educational
19
expenses
as
provided
in
this
section.
Parents
and
guardians
20
shall
first
use
education
savings
account
payments
for
all
21
qualified
educational
expenses
that
are
tuition
and
fees
for
22
which
the
parent
or
guardian
is
responsible
for
payment
at
the
23
pupil’s
nonpublic
school
prior
to
using
the
education
savings
24
account
for
other
qualified
educational
expenses.
25
3.
a.
On
or
after
January
1,
but
on
or
before
June
30,
26
preceding
the
school
year
for
which
the
education
savings
27
account
payment
is
requested,
the
parent
or
guardian
of
an
28
eligible
pupil
may
request
an
education
savings
account
payment
29
by
submitting
an
application
to
the
department
of
education.
30
b.
Within
thirty
days
following
submission
of
an
31
application,
the
department
of
education
or
third-party
entity
32
shall
notify
the
parent
or
guardian
of
each
pupil
approved
33
for
the
following
school
year
and
specify
the
amount
of
the
34
education
savings
account
payment
for
the
pupil,
if
known
at
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the
time
of
the
notice.
As
soon
as
practical
following
the
1
processing
of
all
applications,
the
department
of
education
or
2
third-party
entity
shall
determine
the
number
of
pupils
in
each
3
school
district
approved
for
the
school
budget
year
and
provide
4
such
information
to
the
department
of
management.
5
c.
Education
savings
account
payments
shall
only
be
approved
6
for
one
school
year
and
applications
must
be
submitted
annually
7
for
payments
in
subsequent
school
years.
8
4.
Each
education
savings
account
payment
shall
be
equal
to
9
the
regular
program
state
cost
per
pupil
for
the
same
school
10
budget
year.
11
5.
An
education
savings
account
fund
is
created
in
12
the
state
treasury
under
the
control
of
the
department
of
13
education
consisting
of
moneys
appropriated
to
the
department
14
of
education
for
the
purpose
of
providing
education
savings
15
account
payments
under
this
section.
For
the
fiscal
year
16
commencing
July
1,
2023,
and
each
succeeding
fiscal
year,
17
there
is
appropriated
from
the
general
fund
of
the
state
18
to
the
department
of
education
to
be
credited
to
the
fund
19
the
amount
necessary
to
pay
all
education
savings
account
20
payments
approved
for
that
fiscal
year.
The
director
of
the
21
department
of
education
has
all
powers
necessary
to
carry
out
22
and
effectuate
the
purposes,
objectives,
and
provisions
of
this
23
section
pertaining
to
the
fund,
including
the
power
to
do
all
24
of
the
following:
25
a.
Make
and
enter
into
contracts
with
a
third-party
entity
26
necessary
for
the
administration
of
the
program.
27
b.
Procure
insurance
against
any
loss
in
connection
with
the
28
assets
of
the
fund
or
require
a
surety
bond.
29
c.
Contract
with
a
qualified
firm,
including
but
not
limited
30
to
the
third-party
entity
under
paragraph
“a”
,
to
allocate
31
funds
from
each
pupil’s
account
for
the
payment
of
qualified
32
educational
expenses
by
the
pupil’s
parent
or
guardian.
33
d.
Require
the
qualified
firm
under
paragraph
“c”
to
34
offer
the
department
of
education
the
capability
of
automated
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clearinghouse
transactions,
electronic
commerce
transactions,
1
reimbursement
transactions,
and
debit
card
payments
in
order
to
2
meet
the
diverse
needs
of
participating
parents
and
guardians
3
to
pay
for
qualified
educational
expenses.
The
director
of
4
the
department
of
education
shall
determine
which
transaction
5
capabilities
will
be
available
to
participating
parents
and
6
guardians.
7
e.
Reduce
the
possibility
of
waste,
fraud,
and
abuse,
8
and
ensure
that
any
technology
platform
used
for
the
program
9
meets
the
state’s
highest
security
requirements,
including
10
compliance.
11
f.
Conduct
audits
or
other
reviews
necessary
to
properly
12
administer
the
program.
13
g.
Adopt
rules
for
the
administration
of
the
fund
and
14
accounts
within
the
fund.
15
6.
a.
For
each
pupil
approved
for
an
education
savings
16
account
payment,
the
department
of
education
or
third-party
17
entity
shall
establish
an
individual
account
for
that
pupil
18
in
the
education
savings
account
fund.
The
amount
of
the
19
pupil’s
education
savings
account
payment
shall
be
deposited
20
into
the
pupil’s
individual
account
on
July
15
or
thirty
days
21
following
submission
of
the
application,
whichever
is
later,
22
and
such
amount
shall
be
immediately
available
for
the
payment
23
of
qualified
educational
expenses
incurred
by
the
parent
or
24
guardian
for
the
pupil
during
that
fiscal
year
using
a
payment
25
method
authorized
under
subsection
5.
26
b.
A
nonpublic
school
or
other
provider
of
qualified
27
educational
expenses
that
accepts
payment
from
a
parent
or
28
guardian
using
funds
from
a
pupil’s
individual
account
in
the
29
fund
shall
not
refund,
rebate,
or
share
any
portion
of
such
30
payment
with
the
parent,
guardian,
or
pupil.
31
c.
Moneys
remaining
in
a
pupil’s
individual
account
32
upon
conclusion
of
the
fiscal
year
shall
remain
in
the
33
pupil’s
individual
account
for
the
payment
of
qualified
34
educational
expenses
in
future
fiscal
years
during
which
the
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pupil
participates
in
the
program
until
the
pupil
becomes
1
ineligible
under
the
program
or
until
the
remaining
amounts
are
2
transferred
to
the
state
general
fund
under
subsection
8.
3
7.
A
person
who
makes
a
false
claim
for
the
purpose
of
4
obtaining
an
education
savings
account
payment
or
who
knowingly
5
receives
the
payment
or
makes
a
payment
from
an
individual
6
account
within
the
fund
without
being
legally
entitled
to
do
7
so
is
guilty
of
a
fraudulent
practice
under
chapter
714.
The
8
false
claim
for
an
education
savings
account
or
a
payment
from
9
an
individual
account
shall
be
disallowed.
The
department
of
10
education
or
third-party
entity
shall
also
close
the
pupil’s
11
individual
account
in
the
fund
and
transfer
any
remaining
12
moneys
in
the
account
for
deposit
in
the
general
fund
of
the
13
state.
If
the
improperly
obtained
amounts
have
been
disbursed
14
from
the
applicable
individual
account,
the
department
of
15
education
or
third-party
entity
shall
recover
such
amounts
16
from
the
parent
or
guardian,
including
by
initiating
legal
17
proceedings
to
recover
such
amounts,
if
necessary.
A
parent
or
18
guardian
who
commits
a
fraudulent
practice
under
this
section
19
is
prohibited
from
participating
in
the
education
savings
20
account
program
in
the
future.
21
8.
Moneys
remaining
in
a
pupil’s
individual
account
when
the
22
pupil
graduates
from
high
school
or
turns
twenty
years
of
age,
23
whichever
occurs
first,
shall
be
transferred
by
the
department
24
of
education
for
deposit
in
the
general
fund
of
the
state.
25
9.
a.
A
parent
may
appeal
to
the
state
board
of
education
26
any
administrative
decision
the
department
of
education
or
27
third-party
entity
makes
pursuant
to
this
section,
including
28
but
not
limited
to
determinations
of
eligibility,
allowable
29
expenses,
and
removal
from
the
program.
The
department
or
30
third-party
entity
shall
notify
the
parent
or
guardian
in
31
writing
of
the
appeal
process
at
the
same
time
the
department
32
notifies
the
parent
or
guardian
of
the
administrative
decision.
33
The
state
board
of
education
shall
establish
the
appeals
34
process
consistent
with
chapter
17A
and
shall
post
such
appeal
35
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process
information
on
the
state
board
of
education’s
internet
1
site.
2
b.
The
state
board
of
education
shall
refer
cases
of
3
substantial
misuse
of
education
savings
account
program
funds
4
to
the
attorney
general
for
the
purpose
of
collection
or
for
5
the
purpose
of
a
criminal
investigation
if
the
state
board
of
6
education
obtains
evidence
of
fraudulent
use
of
an
account.
7
10.
a.
This
section
shall
not
be
construed
to
authorize
8
the
state
or
any
political
subdivision
of
the
state
to
exercise
9
authority
over
any
nonpublic
school
or
construed
to
require
a
10
nonpublic
school
to
modify
its
academic
standards
for
admission
11
or
educational
program
in
order
to
receive
payment
from
a
12
parent
or
guardian
using
funds
from
a
pupil’s
account
in
the
13
education
savings
account
fund.
14
b.
This
section
shall
not
be
construed
to
expand
the
15
authority
of
the
state
or
any
political
subdivision
of
the
16
state
to
impose
regulations
upon
any
nonpublic
school
that
are
17
not
necessary
to
implement
this
section.
18
c.
A
nonpublic
school
that
accepts
payment
from
a
parent
or
19
guardian
using
funds
from
a
pupil’s
account
in
the
education
20
savings
account
fund
is
not
an
agent
of
this
state
or
of
a
21
political
subdivision
of
this
state.
22
d.
Rules
adopted
by
the
department
of
education
to
implement
23
this
section
that
impose
an
undue
burden
on
a
nonpublic
school
24
are
invalid.
25
e.
A
nonpublic
school
that
accepts
payment
from
a
parent
or
26
guardian
using
funds
from
a
pupil’s
account
in
the
education
27
savings
account
fund
shall
be
given
the
maximum
freedom
28
possible
to
provide
for
the
educational
needs
of
the
school’s
29
students,
consistent
with
state
and
federal
law.
30
11.
a.
Each
pupil
participating
in
the
education
savings
31
account
program
is
required
to
take
all
applicable
state
and
32
federally
required
student
assessments
and
the
results
of
33
those
assessments
shall
be
provided
to
the
pupil’s
parents
or
34
guardians
and
reported
to
the
department
of
education.
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b.
The
department
of
education
shall
compile
all
such
1
reported
assessment
results
in
order
to
analyze
student
2
proficiency
and
academic
progress
among
those
pupils
3
participating
in
the
program,
including
analysis
of
graduation
4
rates,
proficiency,
and
progress
based
on
grade
level,
5
gender,
race,
and
household
income
level.
The
results
of
the
6
department’s
analysis
shall
be
included
in
the
annual
condition
7
of
education
report.
8
Sec.
8.
Section
422.7,
Code
2023,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
44.
Subtract,
to
the
extent
included,
the
11
amount
of
an
education
savings
account
payment
under
section
12
257.11B
received
by
the
taxpayer
for
payment
of
qualified
13
educational
expenses.
14
Sec.
9.
EMERGENCY
RULES.
The
department
of
education
15
may
adopt
emergency
rules
under
section
17A.4,
subsection
3,
16
and
section
17A.5,
subsection
2,
paragraph
“b”,
to
implement
17
the
provisions
of
the
section
of
this
Act
enacting
section
18
256.9,
subsection
66,
and
section
257.11B,
and
the
rules
shall
19
be
effective
immediately
upon
filing
unless
a
later
date
is
20
specified
in
the
rules.
Any
rules
adopted
in
accordance
with
21
this
section
shall
also
be
published
as
a
notice
of
intended
22
action
as
provided
in
section
17A.4.
23
Sec.
10.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
24
deemed
of
immediate
importance,
takes
effect
upon
enactment.
25
Sec.
11.
RETROACTIVE
APPLICABILITY.
The
following
applies
26
retroactively
to
tax
years
beginning
on
or
after
January
1,
27
2023:
28
The
section
of
this
division
of
this
Act
enacting
section
29
422.7,
subsection
44.
30
DIVISION
III
31
SCHOOL
DISTRICT
CATEGORICAL
FUNDING
32
Sec.
12.
Section
257.10,
subsection
9,
paragraph
d,
Code
33
2023,
is
amended
to
read
as
follows:
34
d.
For
the
budget
year
beginning
July
1,
2009,
the
use
35
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of
the
funds
calculated
under
this
subsection
shall
comply
1
with
the
requirements
of
chapter
284
and
shall
be
distributed
2
to
teachers
pursuant
to
section
284.3A
.
For
the
budget
year
3
beginning
July
1,
2010,
and
succeeding
budget
years,
the
use
4
of
the
funds
calculated
under
this
subsection
or
available
for
5
use
as
provided
in
subsection
10,
paragraph
“d”
,
subsection
12,
6
paragraph
“d”
,
or
section
257.46,
subsection
3,
shall
comply
7
with
the
requirements
of
chapter
284
and
shall
be
distributed
8
to
teachers
pursuant
to
section
284.3A
.
9
Sec.
13.
Section
257.10,
subsection
10,
paragraph
d,
Code
10
2023,
is
amended
to
read
as
follows:
11
d.
The
use
of
the
funds
calculated
under
this
subsection
12
and
any
amount
designated
for
professional
development
purposes
13
from
the
school
district’s
flexibility
account
under
section
14
298A.2,
subsection
2
,
shall
comply
with
the
requirements
of
15
chapter
284
.
If
all
professional
development
requirements
of
16
chapter
284
are
met
and
funds
received
under
this
subsection
17
remain
unexpended
and
unobligated
at
the
end
of
a
fiscal
year
18
beginning
on
or
after
July
1,
2017,
the
school
district
may
19
transfer
all
or
a
portion
of
such
unexpended
and
unobligated
20
funds
for
deposit
in
the
school
district’s
flexibility
account
21
established
under
section
298A.2,
subsection
2
.
At
the
end
22
of
a
fiscal
year
beginning
on
or
after
July
1,
2022,
the
23
school
district
may
use
all
or
a
portion
of
funds
under
this
24
subsection
for
the
purposes
authorized
under
subsection
9,
25
paragraph
“d”
.
26
Sec.
14.
Section
257.10,
subsection
12,
paragraph
d,
Code
27
2023,
is
amended
to
read
as
follows:
28
d.
For
the
budget
year
beginning
July
1,
2014,
and
29
succeeding
budget
years,
the
use
of
the
funds
calculated
under
30
this
subsection
shall
comply
with
the
requirements
of
chapter
31
284
and
shall
be
distributed
to
teachers
pursuant
to
section
32
284.15
.
The
funds
shall
be
used
only
to
increase
the
payment
33
for
a
teacher
assigned
to
a
leadership
role
pursuant
to
a
34
framework
or
comparable
system
approved
pursuant
to
section
35
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284.15
;
to
increase
the
percentages
of
teachers
assigned
to
1
leadership
roles;
to
increase
the
minimum
teacher
starting
2
salary
to
thirty-three
thousand
five
hundred
dollars;
to
3
cover
the
costs
for
the
time
mentor
and
lead
teachers
are
not
4
providing
instruction
to
students
in
a
classroom;
for
coverage
5
of
a
classroom
when
an
initial
or
career
teacher
is
observing
6
or
co-teaching
with
a
teacher
assigned
to
a
leadership
role;
7
for
professional
development
time
to
learn
best
practices
8
associated
with
the
career
pathways
leadership
process;
and
for
9
other
costs
associated
with
a
framework
or
comparable
system
10
approved
by
the
department
of
education
under
section
284.15
11
with
the
goals
of
improving
instruction
and
elevating
the
12
quality
of
teaching
and
student
learning.
If
all
requirements
13
for
the
school
district
for
the
use
of
funds
calculated
14
under
this
subsection
are
met
and
funds
received
under
this
15
subsection
remain
unexpended
and
unobligated
at
the
end
of
a
16
fiscal
year
beginning
on
or
after
July
1,
2020,
the
school
17
district
may
transfer
all
or
a
portion
of
such
unexpended
18
and
unobligated
funds
for
deposit
in
the
school
district’s
19
flexibility
account
established
under
section
298A.2,
20
subsection
2
.
At
the
end
of
a
fiscal
year
beginning
on
or
after
21
July
1,
2022,
the
school
district
may
use
all
or
a
portion
of
22
funds
under
this
subsection
for
the
purposes
authorized
under
23
subsection
9,
paragraph
“d”
.
24
Sec.
15.
Section
257.46,
subsection
3,
Code
2023,
is
amended
25
to
read
as
follows:
26
3.
If
any
portion
of
the
gifted
and
talented
program
budget
27
remains
unexpended
at
the
end
of
the
budget
year,
the
remainder
28
shall
be
carried
over
to
the
subsequent
budget
year
and
added
29
to
the
gifted
and
talented
program
budget
for
that
year.
At
30
the
end
of
a
fiscal
year
beginning
on
or
after
July
1,
2022,
31
the
school
district
may
use
all
or
a
portion
of
funds
for
the
32
purposes
authorized
under
subsection
9,
paragraph
“d”
.
33
Sec.
16.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
34
deemed
of
immediate
importance,
takes
effect
upon
enactment.
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EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
relates
to
education
programs
and
funding
by
4
establishing
an
education
savings
account
program
and
modifying
5
certain
school
district
categorical
funding
supplements.
6
DIVISION
I
——
SHORT
TITLE.
Division
I
provides
that
the
bill
7
shall
be
known
and
may
be
cited
as
the
“Students
First
Act”.
8
DIVISION
II
——
EDUCATION
SAVINGS
ACCOUNT
PROGRAM.
Division
9
II
of
the
bill
establishes
an
education
savings
account
program
10
for
school
budget
years
beginning
on
or
after
July
1,
2023,
for
11
the
payment
of
qualified
educational
expenses
incurred
by
the
12
parent
or
guardian
of
an
eligible
pupil.
13
For
the
school
budget
year
beginning
July
1,
2023,
the
14
following
pupils
who
attend
a
nonpublic
school
for
that
school
15
budget
year
shall
be
eligible
to
receive
an
education
savings
16
account
payment:
(1)
a
resident
pupil
who
is
eligible
to
17
enroll
in
kindergarten;
(2)
a
resident
pupil
who
is
eligible
18
to
enroll
in
grades
1
through
12
and
was
not
enrolled
in
a
19
nonpublic
school
for
the
immediately
preceding
school
year;
20
(3)
a
resident
pupil
who
is
eligible
to
enroll
in
grades
1
21
through
12
and
was
enrolled
in
a
nonpublic
school
for
the
22
immediately
preceding
school
year
if
the
pupil’s
household
has
23
an
annual
income
less
than
or
equal
to
300
percent
of
the
most
24
recently
revised
poverty
income
guidelines.
For
the
school
25
budget
year
beginning
July
1,
2024,
the
following
pupils
who
26
attend
a
nonpublic
school
for
that
school
budget
year
shall
be
27
eligible
to
receive
an
education
savings
account
payment:
(1)
28
a
resident
pupil
who
is
eligible
to
enroll
in
kindergarten;
29
(2)
a
resident
pupil
who
is
eligible
to
enroll
in
grades
1
30
through
12
and
was
not
enrolled
in
a
nonpublic
school
for
the
31
immediately
preceding
school
year;
(3)
a
resident
pupil
who
32
is
eligible
to
enroll
in
grades
1
through
12
and
was
enrolled
33
in
a
nonpublic
school
for
the
immediately
preceding
school
34
year
if
the
pupil’s
household
has
an
annual
income
less
than
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or
equal
to
400
percent
of
the
most
recently
revised
poverty
1
income
guidelines;
and
(4)
a
resident
pupil
who
received
an
2
education
savings
account
payment
in
the
immediately
preceding
3
school
budget
year.
For
school
budget
years
beginning
on
or
4
after
July
1,
2025,
resident
pupils
eligible
to
enroll
in
5
kindergarten
through
grade
12
who
attend
a
nonpublic
school
for
6
the
applicable
school
budget
year
shall
be
eligible
to
receive
7
an
education
savings
account
payment.
8
On
or
after
January
1,
but
on
or
before
June
30
preceding
9
the
school
year
for
which
the
education
savings
account
payment
10
is
requested,
the
parent
or
guardian
of
an
eligible
pupil
11
may
request
a
payment
by
submitting
an
application
to
the
12
department
of
education.
13
Within
30
days
following
submission
of
an
application,
the
14
department
of
education
must
notify
the
parent
or
guardian
of
15
each
pupil
approved
for
the
following
school
year
and
specify
16
the
amount
of
the
education
savings
account
payment
for
the
17
pupil,
if
known
at
the
time
of
the
notice.
Education
savings
18
account
payments
shall
only
be
approved
for
one
school
year
and
19
applications
must
be
submitted
each
year.
20
The
bill
creates
an
education
savings
account
fund
in
21
the
state
treasury
under
the
control
of
the
department
of
22
education
consisting
of
moneys
appropriated
to
the
department
23
of
education
for
the
purpose
of
providing
education
savings
24
account
payments.
For
the
fiscal
year
commencing
July
1,
2023,
25
and
each
succeeding
fiscal
year,
the
bill
appropriates
from
the
26
general
fund
of
the
state
to
the
department
of
education
for
27
deposit
in
the
fund
the
amount
necessary
to
pay
all
education
28
savings
account
payments
approved
for
that
fiscal
year.
For
29
each
pupil
approved,
the
department
of
education
must
establish
30
an
individual
account
for
that
pupil
in
the
fund.
The
amount
31
of
the
pupil’s
payment
is
deposited
into
the
pupil’s
account
32
on
July
15
or
30
days
after
submission
of
the
application,
33
whichever
is
later,
and
such
amount
is
available
for
use
by
34
parents
and
guardians
for
the
payment
of
qualified
educational
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expenses,
as
defined
in
the
bill,
incurred
by
the
parent
or
1
guardian
for
the
pupil
during
that
fiscal
year.
The
amount
of
2
the
education
savings
account
payment
is
equal
to
the
regular
3
program
state
cost
per
pupil
for
the
same
school
budget
year.
4
The
bill
authorizes
the
department
to
contract
with
a
5
third-party
entity
for
administration
of
the
program
and
6
includes
applicable
references
to
such
a
third-party
entity.
7
Parents
and
guardians
shall
first
use
education
savings
8
account
payments
for
all
qualified
educational
expenses
that
9
are
tuition
and
fees
for
which
the
parent
or
guardian
is
10
responsible
for
payment
at
the
pupil’s
nonpublic
school
prior
11
to
using
the
education
savings
account
for
other
qualified
12
educational
expenses.
13
The
bill
provides
that
moneys
remaining
in
a
pupil’s
account
14
upon
the
conclusion
of
the
fiscal
year
shall
remain
in
the
15
pupil’s
account
in
the
fund
for
the
payment
of
qualified
16
educational
expenses
in
future
fiscal
years
during
which
the
17
pupil
participates
in
the
program
until
the
pupil
becomes
18
ineligible
or
until
the
remaining
amounts
are
required
to
be
19
transferred
to
the
general
fund
of
the
state
under
the
bill.
20
For
each
pupil
with
a
positive
balance
in
the
pupil’s
account
21
in
the
fund
upon
graduation
from
high
school
or
reaching
22
20
years
of
age,
whichever
occurs
first,
the
department
of
23
education
is
required
to
transfer
such
remaining
moneys
for
24
deposit
in
the
general
fund
of
the
state.
25
The
bill
establishes
procedures
for
parent
or
guardian
26
appeals
to
the
state
board
of
education
and
provides
that
a
27
person
who
makes
a
false
claim
for
the
purpose
of
obtaining
an
28
education
savings
account
payment
or
who
knowingly
receives
the
29
payment
or
makes
a
payment
from
an
account
in
the
fund
without
30
being
legally
entitled
to
do
so
is
guilty
of
a
fraudulent
31
practice
and
is
subject
to
a
criminal
penalty.
The
bill
32
directs
the
department
of
education
to
recover
program
payments
33
and
amounts
improperly
awarded
or
paid
and
requires
the
closure
34
of
the
pupil’s
account
and
transfer
of
all
remaining
moneys
to
35
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_____
H.F.
_____
the
general
fund
of
the
state.
1
The
bill
requires
the
department
of
education
to
compile
all
2
state
and
federally
required
student
assessment
results
for
3
participating
pupils
in
order
to
analyze
student
proficiency
4
and
academic
progress
among
those
pupils
participating
in
the
5
program,
including
analysis
of
graduation
rates,
proficiency,
6
and
progress
based
on
grade
level,
gender,
race,
and
household
7
income
level.
The
results
of
the
department’s
analysis
shall
8
be
included
in
the
annual
condition
of
education
report.
9
The
bill
also
modifies
the
calculation
of
the
teacher
10
salary
supplement
district
cost,
the
professional
development
11
supplement
district
cost,
the
early
intervention
supplement
12
district
cost,
and
the
teacher
leadership
supplement
district
13
cost
under
Code
section
257.10.
Under
the
bill,
each
such
14
supplement
amount
shall
be
calculated,
in
part,
by
multiplying
15
the
applicable
supplement
district
cost
per
pupil
by
the
sum
16
of
the
school
district’s
budget
enrollment
plus
the
number
17
of
resident
pupils
in
the
school
district
that
received
an
18
education
savings
account
payment
under
the
bill
for
the
base
19
year.
20
Division
II
of
the
bill
takes
effect
upon
enactment.
The
21
bill
also
authorizes
the
department
of
education
to
adopt
22
emergency
rules
to
implement
the
program.
23
The
bill
provides
that
an
education
savings
account
payment
24
received
by
a
taxpayer
is
not
taxable
income
for
purposes
25
of
state
individual
income
taxation.
This
provision
of
the
26
bill
applies
retroactively
to
tax
years
beginning
on
or
after
27
January
1,
2023.
28
DIVISION
III
——
SCHOOL
DISTRICT
CATEGORICAL
FUNDING.
29
Division
III
of
the
bill
authorizes
school
districts
to
use
all
30
or
a
portion
of
funds
at
the
end
of
any
fiscal
year
beginning
31
on
or
after
July
1,
2022,
from
the
professional
development
32
categorical
supplement,
the
teacher
leadership
categorical
33
supplement,
or
the
gifted
and
talented
program
for
teacher
34
salary
categorical
supplement
purposes
under
the
salary
system
35
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