Bill Text: IA SF2276 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to savings for higher education and training including creating an Iowa educational savings kick start program and a hawkeye state matching grant program, and making appropriations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-02-17 - Subcommittee: Sinclair, Behn, and Wahls. S.J. 323. [SF2276 Detail]
Download: Iowa-2019-SF2276-Introduced.html
Senate
File
2276
-
Introduced
SENATE
FILE
2276
BY
RAGAN
A
BILL
FOR
An
Act
relating
to
savings
for
higher
education
and
training
1
including
creating
an
Iowa
educational
savings
kick
start
2
program
and
a
hawkeye
state
matching
grant
program,
and
3
making
appropriations.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
NEW
SECTION
.
12D.10A
Iowa
educational
savings
1
kick
start
program
——
fund
——
appropriation.
2
1.
As
used
in
this
section
unless
the
context
otherwise
3
requires:
4
a.
“Program”
means
the
Iowa
educational
savings
kick
start
5
program.
6
b.
“Qualified
education
expenses”
means
the
same
as
defined
7
in
section
12D.1,
except
shall
not
include
elementary
or
8
secondary
educational
expenses
for
tuition
described
in
section
9
529(c)(7)
of
the
Internal
Revenue
Code.
10
c.
“Qualified
student”
means
the
beneficiary
designated
to
11
benefit
from
advance
payments
of
qualified
education
expenses
12
on
behalf
of
the
qualified
student
under
this
section.
13
d.
“School”
means
a
public
elementary
school
located
in
this
14
state.
15
2.
a.
The
Iowa
educational
savings
kick
start
program
is
16
created.
The
purpose
of
the
program
is
to
promote
access
to
17
postsecondary
educational
opportunities
by
creating
a
separate
18
account
funded
by
the
state
for
each
qualified
student
who
is
a
19
resident
of
this
state,
upon
commencement
of
the
enrollment
of
20
the
qualified
student
in
kindergarten
at
a
school,
to
alleviate
21
the
cost
of
qualified
education
expenses
associated
with
22
attending
a
postsecondary
educational
institution.
23
b.
(1)
The
account
shall
be
in
addition
to
any
other
24
participation
agreement
established
under
this
chapter,
or
25
to
an
account
established
in
section
12D.10B.
The
treasurer
26
shall
encourage
and
promote
parents
and
guardians
of
qualified
27
students
to
enter
into
participation
agreements
under
section
28
12D.3.
29
(2)
Direct
contributions
shall
not
be
made
to
the
account
30
established
on
behalf
of
the
qualified
student
in
this
section,
31
and
the
qualified
student
or
the
parent
or
guardian
of
the
32
qualified
student
account
shall
not
be
able
to
affect
the
33
account,
except
as
provided
subsection
6.
34
(3)
The
treasurer
shall
make
account
balances
within
the
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kick
start
education
fund
established
in
subsection
5
available
1
through
a
secured
internet
site
to
each
parent
or
legal
2
guardian
of
a
qualified
student
or
to
a
qualified
student.
3
3.
Within
one
hundred
twenty
days
of
the
start
of
the
school
4
year,
the
department
of
education
shall
provide
the
treasurer
5
of
state
with
the
total
number
of
kindergarten
students
6
enrolled
in
schools
for
the
school
year
beginning
July
1,
2020,
7
and
in
each
succeeding
school
year
thereafter.
8
4.
Commencing
with
the
fiscal
year
beginning
July
1,
2020,
9
and
every
year
thereafter,
there
is
annually
appropriated
from
10
the
general
fund
of
the
state
to
the
kick
start
education
fund
11
established
in
subsection
5
an
amount
equal
to
the
product
of
12
one
hundred
dollars
multiplied
by
the
total
number
of
resident
13
students
enrolled
in
kindergarten
in
schools
for
the
same
14
school
year.
15
5.
a.
(1)
A
kick
start
education
fund
is
established
16
in
the
state
treasury
under
the
control
of
the
treasurer
of
17
state
consisting
of
funds
appropriated
to
the
fund
pursuant
to
18
subsection
4,
any
other
funds
appropriated
to
the
fund,
and
19
other
moneys
received
by
the
treasurer
of
state
for
deposit
in
20
the
fund.
The
treasurer
of
state
may
accept
gifts,
grants,
21
bequests,
and
other
private
contributions
for
deposit
into
the
22
kick
start
education
fund.
23
(2)
The
treasurer
of
state
shall
encourage
and
solicit
24
philanthropic
support
of
the
fund.
25
(3)
Notwithstanding
section
12C.7,
subsection
2,
26
interest
or
earnings
on
moneys
deposited
in
the
kick
27
start
education
fund
shall
be
credited
to
the
scholarship
28
fund.
Notwithstanding
section
8.33,
moneys
credited
to
the
29
scholarship
fund
shall
not
revert
at
the
close
of
a
fiscal
30
year.
31
(4)
The
treasurer
of
state
shall
invest
the
moneys
in
the
32
kick
start
education
fund
in
accordance
with
the
public
funds
33
investment
standards
in
section
12B.10.
34
b.
The
treasurer
of
state
shall
use
the
moneys
in
the
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scholarship
fund
to
provide
moneys
to
a
qualified
student
for
1
the
purpose
of
paying
qualified
education
expenses
and
to
pay
2
for
the
costs
associated
with
the
plan.
3
6.
a.
To
receive
moneys
under
the
plan,
a
qualified
student
4
must
apply
for
the
moneys
with
the
treasurer
of
state
on
a
form
5
prescribed
by
the
treasurer.
6
b.
A
one-time
payment
of
moneys
shall
be
awarded
if
all
of
7
the
following
apply
at
the
time
of
the
application:
8
(1)
The
qualified
student
is
a
resident
of
this
state.
9
(2)
The
qualified
student
is
not
more
than
twenty-one
years
10
of
age.
11
(3)
The
qualified
student
is
enrolled
at
a
postsecondary
12
educational
institution
and
incurs
qualified
education
13
expenses.
14
7.
a.
Upon
qualifying
under
subsection
6,
the
treasurer
15
of
state
shall
provide
the
qualified
student
with
a
payment
in
16
the
amount
of
one
hundred
dollars,
plus
the
investment
earnings
17
attributable
to
the
one-hundred-dollar
amount
since
the
18
enrollment
of
the
qualified
student
as
provided
in
subsection
2
19
as
calculated
by
the
treasurer
of
state,
plus
other
investment
20
income
as
calculated
in
paragraph
“b”
.
21
b.
A
qualified
student
shall
also
receive
other
investment
22
income
as
calculated
by
the
treasurer
of
state
in
an
amount
23
that
equals
a
pro
rata
share
of
other
unobligated
moneys
24
received
by
the
treasurer
of
state
for
deposit
in
the
kick
25
start
education
fund
including
any
gifts,
grants,
bequests,
26
private
contributions,
and
the
investment
earnings
attributable
27
to
such
moneys.
28
8.
(1)
No
property
rights
in
the
kick
start
education
fund
29
shall
exist
in
favor
of
the
qualified
student.
30
(2)
A
payment
pursuant
to
this
section
is
not
guaranteed
and
31
is
subject
to
appropriations
by
the
general
assembly,
future
32
modifications,
and
investment
gain
or
loss.
33
Sec.
2.
NEW
SECTION
.
12D.10B
Hawkeye
state
matching
grant
34
program
——
fund
——
appropriation.
35
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1.
As
used
in
this
section
unless
the
context
otherwise
1
requires:
2
a.
“Annual
household
income
threshold”
means
annual
adjusted
3
gross
income
that
is
less
than
seventy-five
thousand
dollars
4
in
the
calendar
year
immediately
preceding
the
year
of
5
application.
6
b.
“Program”
means
the
hawkeye
state
matching
grant
program.
7
c.
“Qualified
education
expenses”
means
the
same
as
defined
8
in
section
12D.1,
except
“qualified
education
expenses”
shall
9
include
qualified
educational
expenses
for
qualifying
training
10
programs
if
such
programs
are
not
considered
qualified
11
educational
institutions,
but
“qualified
education
expenses”
12
does
not
include
elementary
or
secondary
education
expenses
for
13
tuition
described
in
section
529(c)(7)
of
the
Internal
Revenue
14
Code.
15
d.
“Qualified
student”
means
the
beneficiary
designated
to
16
benefit
from
advance
payments
of
qualified
education
expenses
17
on
behalf
of
the
qualified
student
under
this
section,
whose
18
household
meets
the
annual
household
income
threshold.
19
e.
“Qualifying
training
programs”
means
the
pathways
for
20
academic
career
and
employment
in
chapter
260H,
the
gap
tuition
21
assistance
program
in
chapter
260I,
and
the
skilled
workforce
22
shortage
tuition
grant
program
in
section
261.130.
23
2.
a.
The
hawkeye
state
matching
grant
program
is
24
created.
The
purpose
of
the
program
is
to
promote
access
to
25
postsecondary
educational
opportunities
including
qualifying
26
training
programs
by
entering
into
participation
agreements
27
with
participants
that
contain
matching
funds
from
the
state
28
for
each
qualified
student
who
is
a
resident
of
this
state,
to
29
alleviate
the
cost
of
qualified
education
expenses
associated
30
with
attending
a
postsecondary
educational
institution
or
31
qualifying
training
program.
32
b.
(1)
The
account
shall
be
established
in
the
same
manner
33
as
a
participation
agreement
under
section
12D.3,
and
shall
34
have
the
same
attributes
as
such
an
account
except
as
otherwise
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provided
in
this
section.
1
(2)
The
treasurer
shall
encourage
and
promote
entering
into
2
participation
agreements
pursuant
to
this
section
to
parents
3
and
guardians
of
qualified
students
who
are
under
the
annual
4
household
income
threshold
limit,
and
shall
encourage
and
5
solicit
philanthropic
support
of
the
program.
6
3.
a.
For
each
participation
agreement
entered
7
into
pursuant
to
this
section,
the
state
shall
match
8
dollar-for-dollar
each
dollar
contributed
by
the
participant
to
9
the
account
established
pursuant
to
this
section,
up
to
three
10
hundred
matching
dollars
per
year,
not
to
exceed
one
thousand
11
five
hundred
dollars
in
matching
dollars
in
the
aggregate
per
12
qualified
student.
13
b.
There
shall
be
no
matching
contribution
to
an
account
14
created
under
this
section
after
the
qualified
student
turns
15
thirteen
years
of
age.
16
4.
a.
If
a
parent
or
legal
guardian
chooses
to
enroll
17
a
child
in
the
program,
the
parent
or
legal
guardian
shall
18
return
a
completed
application
to
the
treasurer
of
state
along
19
with
a
copy
of
the
parent’s
or
legal
guardian’s
tax
returns
in
20
order
to
determine
if
the
child
qualifies
for
enrollment
in
the
21
program.
22
b.
Upon
receipt
of
the
application
and
tax
returns
pursuant
23
to
paragraph
“a”
,
and
if
the
annual
household
income
thresholds
24
have
been
met,
the
child
shall
be
enrolled
in
the
program.
25
c.
If
state
matching
funds
have
not
been
used
by
the
26
qualified
student
by
the
twenty-first
birthday
of
the
student,
27
the
state
matching
funds
shall
be
withdrawn
from
the
account
of
28
the
qualified
student
and
used
to
match
contributions
of
other
29
qualified
students.
30
d.
The
treasurer
of
state
shall
take
measures
to
ensure
the
31
security
and
confidentiality
of
the
information
received
under
32
this
subsection.
33
5.
a.
A
hawkeye
state
matching
grant
fund
is
established
34
in
the
state
treasury
under
the
control
of
the
treasurer
of
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state
consisting
of
funds
appropriated
to
the
fund
and
any
1
other
moneys
received
by
the
treasurer
of
state
for
deposit
in
2
the
fund.
The
treasurer
of
state
may
accept
gifts,
grants,
3
bequests,
and
other
private
contributions
for
deposit
into
the
4
fund.
5
b.
The
moneys
in
the
fund
shall
be
used
to
match
the
6
contributions
of
participants
who
make
contributions
to
an
7
account
as
provided
in
this
section.
8
c.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
9
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
10
the
fund.
Notwithstanding
section
8.33,
moneys
credited
to
the
11
fund
shall
not
revert
at
the
close
of
a
fiscal
year.
12
d.
The
treasurer
of
state
shall
invest
the
moneys
in
the
13
scholarship
fund
in
accordance
with
the
public
funds
investment
14
standards
in
section
12B.10.
15
6.
It
is
the
intent
of
the
general
assembly
to
appropriate
16
moneys
for
deposit
in
the
hawkeye
state
matching
grant
fund
for
17
the
fiscal
year
beginning
July
1,
2020,
and
for
each
fiscal
18
year
thereafter,
in
an
amount
sufficient
to
pay
any
matching
19
dollars
required
by
the
program.
20
7.
An
account
created
under
this
section
shall
not
be
21
counted
as
an
asset
for
purposes
of
the
supplemental
assistance
22
program,
the
Medicaid
program,
the
family
investment
program,
23
or
the
children’s
health
insurance
program.
24
8.
a.
No
property
rights
in
the
hawkeye
state
matching
25
grant
fund
shall
exist
in
favor
of
the
qualified
student.
26
b.
A
matching
payment
pursuant
to
this
section
is
not
27
guaranteed
and
is
subject
to
appropriations
by
the
general
28
assembly,
future
modifications,
and
investment
gain
or
loss.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
relates
to
savings
for
higher
education
and
33
training
including
creating
an
Iowa
educational
savings
program
34
and
a
hawkeye
state
matching
grant
program.
35
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2276
KICK
START
EDUCATIONAL
PROGRAM.
The
bill
creates
the
Iowa
1
educational
savings
kick
start
program.
The
purpose
of
the
2
program
is
to
promote
access
to
postsecondary
educational
3
opportunities
by
providing
for
the
creation
of
a
separate
4
account
funded
by
the
state
for
each
qualified
student
who
is
5
a
resident
of
this
state,
upon
commencement
of
the
enrollment
6
of
the
qualified
student
in
kindergarten
at
a
public
school
in
7
this
state,
to
alleviate
the
cost
of
expenses
associated
with
8
attending
a
postsecondary
educational
institution.
9
Within
120
days
of
the
start
of
the
school
year,
the
bill
10
requires
the
department
of
education
to
provide
the
treasurer
11
of
state
with
the
total
number
of
kindergarten
students
12
enrolled
in
public
schools
in
this
state
for
the
school
year
13
beginning
July
1,
2020,
and
in
each
succeeding
school
year
14
thereafter.
15
The
bill
establishes
a
kick
start
education
fund
in
the
state
16
treasury
under
the
control
of
the
treasurer
of
state
consisting
17
of
funds
appropriated
to
the
kick
start
education
fund,
any
18
other
funds
appropriated
to
the
kick
start
education
fund,
and
19
other
moneys
received
by
the
treasurer
of
state
for
deposit
in
20
the
fund.
The
bill
permits
the
treasurer
of
state
to
accept
21
gifts,
grants,
bequests,
and
other
private
contributions
for
22
deposit
into
the
kick
start
education
fund.
23
Commencing
with
the
fiscal
year
beginning
July
1,
2020,
24
the
bill
appropriates
from
the
general
fund
of
the
state
to
25
the
kick
start
education
fund
an
amount
equal
to
the
product
26
of
$100
multiplied
by
the
number
of
resident
students
who
27
in
enroll
in
kindergarten
in
public
schools
for
the
school
28
year
starting
with
the
school
year
beginning
July
1,
2020,
29
and
such
an
appropriation
shall
be
annually
made
each
fiscal
30
year
thereafter
based
upon
the
product
of
$100
multiplied
by
31
enrollment
figures
in
succeeding
school
years.
32
In
order
to
receive
moneys
under
the
bill,
a
qualified
33
student
must
apply
for
the
moneys
with
the
treasurer
of
state
34
on
a
form
prescribed
by
the
treasurer.
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A
one-time
payment
of
moneys
shall
be
awarded
pursuant
to
1
the
bill
if
all
of
the
following
apply
at
the
time
of
the
2
application:
the
qualified
student
is
a
resident
of
this
3
state,
the
qualified
student
is
not
more
than
21
years
of
4
age,
and
the
qualified
student
is
enrolled
at
a
postsecondary
5
educational
institution
and
incurs
qualified
education
6
expenses.
7
Upon
qualifying
for
the
payment
of
moneys
under
the
bill,
8
the
treasurer
of
state
shall
provide
the
qualified
student
with
9
a
payment
in
the
amount
of
$100,
plus
the
investment
earnings
10
attributable
to
the
$100
amount
since
the
enrollment
of
the
11
qualified
student
in
the
program
plus
any
other
investment
12
income
as
calculated
by
the
treasurer.
13
The
bill
provides
that
no
property
rights
in
the
kick
start
14
education
fund
shall
exist
in
favor
of
the
qualified
student.
15
HAWKEYE
STATE
MATCHING
GRANT
FUND.
The
bill
creates
the
16
hawkeye
state
matching
grant
program.
The
purpose
of
the
17
program
is
to
promote
access
to
postsecondary
educational
18
opportunities
including
qualified
training
programs
by
entering
19
into
participation
agreements
under
Code
chapter
12D
(529
20
plans)
that
contain
matching
funds
from
the
state
for
each
21
qualified
student
who
is
a
resident
of
this
state,
to
alleviate
22
the
cost
of
expenses
associated
with
attending
a
postsecondary
23
educational
institution
or
qualifying
training
program.
24
In
addition
to
using
funds
in
the
account
created
in
the
bill
25
to
pay
for
educational
expenses
at
a
postsecondary
educational
26
institution,
the
bill
specifies
that
educational
expenses
for
27
the
following
programs
also
qualify:
the
pathways
for
academic
28
career
and
employment
in
Code
chapter
260H,
the
gap
tuition
29
assistance
program
in
Code
chapter
260I,
and
the
skilled
30
workforce
shortage
tuition
grant
program
in
Code
section
31
261.130.
32
The
account
shall
have
the
same
attributes
as
a
529
account
33
except
as
otherwise
provided
in
the
bill.
34
For
each
hawkeye
state
matching
grant
account
created
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pursuant
to
the
bill,
the
state
shall
match
dollar-for-dollar
1
each
dollar
contributed
by
the
owner
of
the
account,
up
to
$300
2
matching
dollars
per
year,
not
to
exceed
$1,500
in
matching
3
dollars
in
the
aggregate
per
qualifying
student.
The
bill
4
discontinues
matching
contributions
to
an
account
created
after
5
the
qualified
student
turns
13
years
of
age.
A
student
whose
6
annual
household
adjusted
gross
income
is
more
than
$75,000
is
7
not
eligible
for
the
program.
8
If
a
parent
or
legal
guardian
chooses
to
enroll
a
qualified
9
student
in
the
hawkeye
state
matching
grant
program,
the
parent
10
or
legal
guardian
shall
return
a
completed
application
to
the
11
treasurer
of
state
along
with
a
copy
of
the
parent’s
or
legal
12
guardian’s
tax
returns
in
order
to
determine
if
the
student
13
qualifies
for
enrollment
in
the
program.
14
Upon
receipt
of
the
application
and
tax
returns,
and
if
the
15
annual
household
income
thresholds
have
been
met,
the
student
16
shall
be
enrolled
in
the
program.
17
If
state
matching
funds
have
not
been
used
by
the
qualified
18
student
by
the
21st
birthday
of
the
student,
the
bill
requires
19
the
state
matching
funds
to
be
withdrawn
from
the
account
of
20
the
qualified
student
and
used
to
match
contributions
of
other
21
qualified
students.
22
The
bill
creates
a
hawkeye
state
matching
grant
fund
in
the
23
state
treasury
under
the
control
of
the
treasurer
of
state
24
consisting
of
funds
appropriated
to
the
fund
and
any
other
25
moneys
received
by
the
treasurer
of
state
for
deposit
in
26
the
fund.
The
treasurer
of
state
may
accept
gifts,
grants,
27
bequests,
and
other
private
contributions
for
deposit
into
the
28
fund.
29
The
bill
requires
the
moneys
in
the
fund
to
be
used
to
match
30
the
contributions
of
the
owners
of
the
hawkeye
state
matching
31
grant
account.
32
The
bill
specifies
it
is
the
intent
of
the
general
assembly
33
to
appropriate
moneys
for
deposit
in
the
hawkeye
state
matching
34
grant
fund
for
the
fiscal
year
beginning
July
1,
2020,
and
for
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each
fiscal
year
thereafter,
in
an
amount
sufficient
to
pay
any
1
matching
dollars
required
by
the
program.
2
The
bill
specifies
that
a
hawkeye
state
matching
account
3
shall
not
be
counted
as
an
asset
for
purposes
of
the
4
supplemental
assistance
program,
the
Medicaid
program,
the
5
family
investment
program,
or
the
children’s
health
insurance
6
program.
7
The
bill
provides
that
no
property
rights
of
the
state
8
matching
funds
exist
in
the
hawkeye
state
matching
grant
9
account
in
favor
of
the
qualified
student.
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