Bill Text: IA SF372 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to education savings grants for pupils attending a nonpublic school or receiving competent private instruction, establishing an education savings grant fund, providing an income tax exemption, making appropriations, providing penalties, and including applicability provisions. (See SF 547.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-07 - Committee report approving bill, renumbered as SF 547. S.J. 506. [SF372 Detail]
Download: Iowa-2019-SF372-Introduced.html
Senate
File
372
-
Introduced
SENATE
FILE
372
BY
BEHN
A
BILL
FOR
An
Act
relating
to
education
savings
grants
for
pupils
1
attending
a
nonpublic
school
or
receiving
competent
private
2
instruction,
establishing
an
education
savings
grant
fund,
3
providing
an
income
tax
exemption,
making
appropriations,
4
providing
penalties,
and
including
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
256.7,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
34.
Adopt
rules
relating
to
applications
3
for
an
education
savings
grant
pursuant
to
section
257.11B,
4
including
application
processing
timelines
and
information
5
required
to
be
submitted
by
a
parent
or
guardian.
6
Sec.
2.
NEW
SECTION
.
257.11B
Education
savings
grant
7
program.
8
1.
Pupils
eligible
to
enroll
in
grades
kindergarten
through
9
twelve
and
attending
a
nonpublic
school
or
receiving
competent
10
private
instruction
under
chapter
299A
shall
be
eligible
to
11
receive
an
education
savings
grant
in
the
manner
provided
in
12
this
section
for
school
years
beginning
on
or
after
July
1,
13
2020.
Education
savings
grants
shall
be
made
available
to
14
parents
and
guardians
in
the
manner
authorized
under
subsection
15
4,
paragraph
“c”
,
for
the
payment
of
qualified
educational
16
expenses
as
provided
in
this
section.
17
2.
a.
(1)
By
January
31
preceding
the
school
year
for
18
which
the
education
savings
grant
is
requested,
the
parent
19
or
guardian
of
the
pupil
requesting
to
receive
an
education
20
savings
grant
shall
submit
an
application
to
the
department
of
21
education,
on
application
forms
developed
by
the
department
of
22
education,
indicating
that
the
parent
or
guardian
intends
to
23
enroll
the
pupil
in
a
nonpublic
school
or
place
the
pupil
under
24
competent
private
instruction
under
chapter
299A.
25
(2)
In
addition
to
information
deemed
appropriate
by
26
the
department
of
education,
the
application
shall
require
27
certification
from
the
nonpublic
school
of
the
pupil’s
28
enrollment
for
the
following
school
year
or
a
statement
29
indicating
the
parent
or
guardian’s
intent
to
provide
or
30
arrange
for
competent
private
instruction
for
the
pupil
for
the
31
following
school
year.
32
b.
By
March
1
preceding
the
school
year
for
which
the
33
education
savings
grant
is
requested,
the
department
of
34
education
shall
notify
the
department
of
management
of
the
35
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number
of
pupils
in
each
school
district
designated
for
the
1
following
school
year
to
receive
an
education
savings
grant
2
and
the
amount
of
the
education
savings
grant
for
each
pupil.
3
The
department
of
education
shall
also
notify
the
parent
or
4
guardian
of
each
pupil
who
is
approved
to
receive
an
education
5
savings
grant
and
the
amount
of
the
grant.
6
c.
Education
savings
grants
shall
only
be
approved
for
one
7
school
year
and
applications
must
be
submitted
annually
for
8
education
savings
grants
in
subsequent
school
years.
9
3.
a.
The
department
of
management
shall
assign
each
pupil
10
an
education
savings
grant
in
an
amount
equal
to
the
difference
11
between
eighty-seven
and
five-tenths
percent
of
the
regular
12
program
state
cost
per
pupil
and
the
statewide
average
regular
13
program
state
foundation
property
tax
per
pupil
in
the
same
14
school
year.
15
b.
The
department
of
management
shall
on
July
1
following
16
the
determination
of
the
amount
of
the
education
savings
grant
17
for
each
approved
pupil
transfer
such
amounts
to
the
pupil’s
18
account
in
the
education
savings
grant
fund
established
under
19
subsection
4.
Such
amount
shall
be
available
to
the
pupil’s
20
parent
or
guardian
in
the
manner
authorized
under
subsection
21
4,
paragraph
“c”
,
for
the
payment
of
qualified
educational
22
expenses
incurred
by
such
persons
for
the
pupil
during
that
23
school
year.
24
4.
An
education
savings
grant
fund
is
created
in
the
state
25
treasury
under
the
control
of
the
department
of
management
26
consisting
of
moneys
appropriated
to
the
department
of
27
management
for
the
purpose
of
providing
education
savings
28
grants
under
this
section.
For
the
fiscal
year
commencing
July
29
1,
2020,
and
each
succeeding
fiscal
year,
there
is
appropriated
30
from
the
general
fund
of
the
state
to
the
department
of
31
management
to
be
credited
to
the
fund
the
amount
necessary
32
to
pay
all
education
savings
grants
approved
for
that
fiscal
33
year.
The
director
of
the
department
of
management
has
all
34
powers
necessary
to
carry
out
and
effectuate
the
purposes,
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objectives,
and
provisions
of
this
section
pertaining
to
the
1
fund,
including
the
power
to
do
all
of
the
following:
2
a.
Make
and
enter
into
contracts
necessary
for
the
3
administration
of
the
fund.
4
b.
Procure
insurance
against
any
loss
in
connection
with
the
5
assets
of
the
fund
or
require
a
surety
bond.
6
c.
Contract
with
a
private
financial
management
firm
to
7
manage
the
fund,
in
collaboration
with
the
treasurer
of
state,
8
including
providing
for
the
disbursement
of
education
savings
9
grants
in
the
form
of
an
electronic
debit
card
or
checks
that
10
are
payable
directly
from
the
pupil’s
account
within
the
fund.
11
d.
Conduct
audits
or
other
review
necessary
to
properly
12
administer
the
program.
13
e.
Adopt
rules
pursuant
to
chapter
17A
for
the
14
administration
of
the
fund
and
accounts
within
the
fund.
15
5.
a.
For
each
pupil
approved
for
an
education
savings
16
grant,
the
department
of
management
shall
establish
an
account
17
for
that
pupil
in
the
education
savings
grant
fund.
The
18
amount
of
the
pupil’s
education
savings
grant
determined
under
19
subsection
3
shall
be
deposited
into
the
pupil’s
account
on
20
July
1,
and
such
amount
shall
be
immediately
available
for
21
the
payment
of
qualified
educational
expenses
incurred
by
the
22
parent
or
guardian
for
the
pupil
during
that
fiscal
year
using
23
the
payment
method
authorized
under
subsection
4,
paragraph
24
“c”
.
25
b.
A
nonpublic
school
or
a
provider
of
competent
private
26
instruction
that
accepts
payment
from
a
parent
or
guardian
27
using
funds
from
a
pupil’s
account
in
the
education
savings
28
grant
fund
shall
not
refund,
rebate,
or
share
any
portion
of
29
such
payment
with
the
parent,
guardian,
or
pupil.
30
c.
Moneys
remaining
in
a
pupil’s
account
upon
conclusion
31
of
the
fiscal
year
shall
remain
in
the
pupil’s
account
in
the
32
education
savings
grant
fund
for
the
payment
of
qualified
33
educational
expenses
in
future
fiscal
years
or
for
the
payment
34
of
qualified
higher
education
expenses
under
subsection
8.
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6.
For
purposes
of
this
section,
“qualified
educational
1
expenses”
includes
tuition
and
fees
at
a
nonpublic
school,
2
textbooks,
fees
or
payments
for
educational
therapies,
3
including
tutoring
or
cognitive
skills
training,
curriculum
4
fees
and
materials
for
a
course
of
study
for
a
specific
subject
5
matter
or
grade
level,
tuition
or
fees
for
nonpublic
online
6
education
programs,
education
materials
and
services
for
pupils
7
with
disabilities,
including
the
cost
of
paraprofessionals
8
and
assistants
who
are
trained
in
accordance
with
state
law,
9
standardized
test
fees,
fees
required
by
the
department
of
10
education
not
to
exceed
for
each
grant
recipient
five
percent
11
of
the
total
grant
amount
in
any
fiscal
year,
qualified
higher
12
education
expenses,
as
defined
in
section
12D.1,
subsection
2,
13
paragraph
“k”
,
excluding
room
and
board
expenses,
and
other
14
expenses
incurred
by
the
parent
or
guardian
that
are
directly
15
related
to
the
education
of
the
pupil
at
a
nonpublic
school,
16
including
a
nonpublic
school
accredited
by
an
independent
17
accrediting
agency
approved
by
the
department
of
education,
or
18
directly
related
to
providing
competent
private
instruction
19
for
the
pupil
under
chapter
299A.
The
cost
of
one
computer
or
20
other
portable
computing
device
shall
be
allowed
as
a
qualified
21
educational
expense
for
a
pupil
if
such
a
purchase
has
not
been
22
made
using
funds
from
that
pupil’s
account
in
either
of
the
23
two
immediately
preceding
fiscal
years.
“Qualified
educational
24
expenses”
do
not
include
transportation
costs
for
the
pupil,
the
25
cost
of
food
or
refreshments
consumed
by
the
pupil,
the
cost
of
26
clothing
for
the
pupil,
or
the
cost
of
disposable
materials,
27
including
but
not
limited
to
paper,
notebooks,
pencils,
pens,
28
and
art
supplies.
29
7.
A
person
who
makes
a
false
claim
for
the
purpose
30
of
obtaining
an
education
savings
grant
provided
for
in
31
this
section
or
who
knowingly
receives
the
grant
or
makes
a
32
payment
from
an
account
within
the
education
savings
grant
33
fund
without
being
legally
entitled
to
do
so
is
guilty
of
a
34
fraudulent
practice
under
chapter
714.
The
false
claim
for
an
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education
savings
grant
or
a
payment
from
an
account
shall
be
1
disallowed.
If
amounts
from
the
grant
have
been
disbursed
from
2
the
applicable
account
in
the
education
savings
grant
fund,
the
3
department
of
management
shall
initiate
legal
proceedings
to
4
recover
such
amounts.
A
parent
or
guardian,
or
a
pupil
for
5
purposes
of
subsection
8,
who
commits
a
fraudulent
practice
6
under
this
subsection
is
prohibited
from
participating
in
the
7
education
savings
grant
program
in
the
future.
8
8.
a.
For
each
pupil
with
a
positive
balance
in
the
9
pupil’s
account
in
the
education
savings
grant
fund
upon
10
graduation
from
high
school
or
completion
of
an
equivalent
11
level
of
competent
private
instruction
under
chapter
299A,
the
12
department
of
management
shall
maintain
such
account
in
the
13
fund
until
the
pupil
is
twenty-three
years
of
age.
Following
14
graduation
from
high
school
until
the
pupil
is
twenty-three
15
years
of
age,
moneys
in
the
pupil’s
account
may
be
used
for
16
qualified
higher
education
expenses,
as
defined
in
section
17
12D.1,
subsection
2,
paragraph
“k”
,
incurred
by
the
pupil
while
18
attending
an
institution
of
higher
education
under
the
control
19
of
the
state
board
of
regents,
a
community
college
located
in
20
this
state,
or
a
private
college
or
university
located
in
this
21
state.
Payments
from
a
pupil’s
account
for
qualified
higher
22
education
expenses
shall
be
made
in
the
same
manner
as
payments
23
for
qualified
educational
expenses
under
subsection
5.
Moneys
24
in
a
pupil’s
account
when
the
pupil
turns
twenty-three
years
of
25
age
shall
be
transferred
by
the
department
of
management
for
26
deposit
in
the
general
fund
of
the
state.
27
b.
Notwithstanding
the
age
limitation
in
paragraph
“a”
,
28
if
the
pupil
with
a
positive
balance
in
the
pupil’s
account
29
in
the
education
savings
grant
fund
upon
graduation
from
high
30
school
or
completion
of
an
equivalent
level
of
competent
31
private
instruction
under
chapter
299A
serves
on
federal
active
32
duty,
other
than
training,
and
is
discharged
under
honorable
33
conditions,
the
limitation
date
otherwise
applicable
under
34
paragraph
“a”
shall
be
extended
by
one
year
for
each
year
of
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federal
active
duty
service
by
the
pupil,
but
not
to
a
date
1
after
the
pupil’s
twenty-seventh
birthday.
2
9.
This
section
shall
not
be
construed
to
authorize
the
3
state
or
any
political
subdivision
of
the
state
to
exercise
4
authority
over
any
nonpublic
school
or
provider
of
competent
5
private
instruction
under
chapter
299A
or
construed
to
require
6
a
nonpublic
school
to
modify
its
standards
for
admission
or
7
educational
program
in
order
to
receive
payment
from
a
parent
8
or
guardian
using
funds
from
a
pupil’s
account
in
the
education
9
savings
grant
fund.
A
nonpublic
school
or
provider
of
10
competent
private
instruction
under
chapter
299A
that
accepts
11
payment
from
a
parent
or
guardian
using
funds
from
a
pupil’s
12
account
in
the
education
savings
grant
fund
is
not
an
agent
13
of
this
state
or
of
a
political
subdivision
of
this
state.
14
Rules
adopted
by
the
department
of
management
or
the
department
15
of
education
to
implement
this
section
that
impose
an
undue
16
burden
on
a
nonpublic
school
or
provider
of
competent
private
17
instruction
under
chapter
299A
are
invalid.
18
Sec.
3.
Section
422.7,
Code
2019,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
48.
Subtract,
to
the
extent
included,
the
21
amount
of
an
education
savings
grant
under
section
257.11B
22
received
by
the
taxpayer
for
payment
of
qualified
educational
23
expenses.
24
Sec.
4.
APPLICABILITY.
This
Act
applies
to
school
budget
25
years
and
fiscal
years
beginning
on
or
after
July
1,
2020.
26
Sec.
5.
APPLICABILITY.
The
section
of
this
Act
enacting
27
section
422.7,
subsection
48,
applies
to
tax
years
beginning
on
28
or
after
January
1,
2020.
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
provides
education
savings
grants
for
pupils
33
attending
a
nonpublic
school
or
receiving
competent
private
34
instruction
and
establishes
an
education
savings
grant
fund.
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Under
the
bill,
pupils
eligible
to
enroll
in
grades
1
kindergarten
through
12
and
attending
a
nonpublic
school
or
2
receiving
competent
private
instruction
under
Code
chapter
3
299A
are
eligible
to
receive
an
education
savings
grant
for
4
school
years
beginning
on
or
after
July
1,
2020.
By
January
31
5
preceding
the
school
year
for
which
the
education
savings
grant
6
is
requested,
the
parent
or
guardian
of
the
pupil
requesting
to
7
receive
an
education
savings
grant
must
submit
an
application
8
to
the
department
of
education
indicating
that
the
parent
or
9
guardian
intends
to
enroll
the
pupil
in
a
nonpublic
school
or
10
provide
competent
private
instruction
for
the
pupil.
11
The
bill
requires
that
by
March
1
preceding
the
school
12
year
for
which
the
education
savings
grant
is
requested,
13
the
department
of
education
must
notify
the
department
of
14
management
of
the
number
of
pupils
in
each
school
district
15
designated
for
the
following
school
year
to
receive
an
16
education
savings
grant
and
the
amount
of
the
education
savings
17
grant
for
each
pupil.
Education
savings
grants
may
only
be
18
approved
for
one
school
year
and
annual
applications
must
be
19
submitted
for
education
savings
grants
in
subsequent
school
20
years.
21
The
amount
of
each
education
savings
grant
is
equal
to
the
22
statewide
average
regular
program
state
foundation
aid
per
23
pupil
in
the
same
school
year.
24
The
bill
creates
an
education
savings
grant
fund
in
25
the
state
treasury
under
the
control
of
the
department
of
26
management
consisting
of
moneys
appropriated
to
the
department
27
of
management
for
the
purpose
of
providing
education
savings
28
grants.
For
the
fiscal
year
commencing
July
1,
2020,
and
each
29
succeeding
fiscal
year,
there
is
appropriated
from
the
general
30
fund
of
the
state
to
the
department
of
management
for
deposit
31
in
the
fund
the
amount
necessary
to
pay
all
education
savings
32
grants
approved
for
that
fiscal
year.
For
each
pupil
approved
33
for
an
education
savings
grant,
the
department
of
management
34
must
establish
an
account
for
that
pupil
in
the
education
35
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savings
grant
fund.
The
amount
of
the
pupil’s
education
1
savings
grant
is
deposited
into
the
pupil’s
account
on
July
1
2
and
such
amount
is
available
for
use
by
parents
and
guardians
3
for
the
payment
of
qualified
educational
expenses,
as
defined
4
in
the
bill,
incurred
by
the
parent
or
guardian
for
the
pupil
5
during
that
fiscal
year.
6
The
bill
authorizes
the
department
of
management
to
7
contract
with
a
private
financial
management
firm
to
manage
8
the
education
savings
grant
fund,
in
collaboration
with
the
9
treasurer
of
state,
including
providing
for
the
disbursement
10
of
education
savings
grants
in
the
form
of
an
electronic
debit
11
card
or
checks
that
are
payable
directly
from
the
pupil’s
12
account
within
the
fund.
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
education
savings
grant
fund
for
the
16
payment
of
qualified
educational
expenses
in
future
fiscal
17
years
or
for
qualified
higher
education
expenses
as
authorized
18
in
the
bill.
19
Under
the
bill,
for
each
pupil
with
a
positive
balance
in
20
the
pupil’s
account
in
the
education
savings
grant
fund
upon
21
graduation
from
high
school
or
completion
of
an
equivalent
22
level
of
competent
private
instruction
under
Code
chapter
23
299A,
the
department
of
management
is
required
to
maintain
the
24
account
in
the
fund
until
the
pupil
reaches
an
age
specified
in
25
the
bill.
Until
the
pupil
reaches
the
age
limitation,
moneys
26
in
the
pupil’s
account
may
be
used
by
the
pupil
for
qualified
27
higher
education
expenses,
as
defined
in
Code
section
12D.1.
28
Moneys
in
a
pupil’s
account
when
the
pupil
reaches
the
age
29
limitation
are
transferred
by
the
department
of
management
for
30
deposit
in
the
general
fund
of
the
state.
31
The
bill
provides
that
a
person
who
makes
a
false
claim
for
32
the
purpose
of
obtaining
an
education
savings
grant
or
who
33
knowingly
receives
the
grant
or
makes
a
payment
from
an
account
34
within
the
education
savings
grant
fund
without
being
legally
35
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entitled
to
do
so
is
guilty
of
a
fraudulent
practice
and
is
1
subject
to
a
criminal
penalty.
The
bill
allows
the
department
2
of
management
to
initiate
legal
proceedings
to
recover
grants
3
and
amounts
improperly
awarded
or
paid
from
accounts
under
the
4
bill.
5
The
bill
provides
that
an
education
savings
grant
received
6
by
a
taxpayer
is
not
taxable
income
for
purposes
of
state
7
individual
income
taxation.
This
provision
of
the
bill
applies
8
to
tax
years
beginning
on
or
after
January
1,
2020.
9
The
bill
applies
to
school
budget
years
and
fiscal
years
10
beginning
on
or
after
July
1,
2020.
11
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