HF 9 (LSB 1487YH (2) 87)

HOUSE FILE 9

BY  WILLS

A BILL FOR

An Act relating to persistently lowest-achieving schools by authorizing parents or guardians to petition for the closure of an attendance center, for implementation of an education voucher program, or for establishment of a charter school, establishing an education voucher fund, making appropriations, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 256.7, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  33.  Adopt rules relating to applications for an education voucher pursuant to section 256E.4, including application processing timelines and information required to be submitted by a parent or guardian.
    Sec. 2.  NEW SECTION.  256E.1  Definitions.
   1.  “Attendance center” means a public school building that contains classrooms used for instructional purposes for elementary, middle, or secondary school students.
   2.  “School board” means a board of directors regularly elected by the registered voters of a school district.
   3.  “State board” means the state board of education.
    Sec. 3.  NEW SECTION.  256E.2  Alternatives for persistently lowest-achieving schools —— parent petition.
   1.  If an attendance center is identified by the department of education as a persistently lowest-achieving school within the meaning of section 256.9, subsection 55, the parents or guardians of students enrolled at the attendance center may submit a petition to the school board to either close the attendance center pursuant to section 256E.3 or authorize education vouchers for students of the attendance center under section 256E.4.
   2.  A valid petition under this section must state whether the petition is requesting the closure of an attendance center pursuant to section 256E.3 or the authorization of education vouchers under section 256E.4, and must contain the signatures of at least fifty percent of the parents or guardians whose children are enrolled at the attendance center. A valid petition under this section must be received by the school board not later than December 1 of the school year preceding the school year during which the requested action will be implemented. A petition received after that deadline will be considered a petition for the following school year if the attendance center continues to meet the criteria of subsection 1.
   3.  Unless rulemaking is authorized for another state agency, the state board shall, after consulting with the department of education and the department of management, adopt rules to implement and administer this chapter.
    Sec. 4.  NEW SECTION.  256E.3  Closure of attendance center —— reallocation of students.
   1.  If a valid petition for closure of an attendance center is received by a school board under section 256E.2, the school board shall formulate and implement a plan for the closure of the attendance center and a plan for the reallocation of students currently enrolled at the attendance center and those students who would, but for the closure, be enrolled at the attendance center during the next school year.
   2.  The plan for the reallocation of students to other attendance centers in the school district shall include objective criteria and standards and criteria for prioritizing requests that do not have an adverse impact on the plan.
   3.  a.  If other attendance centers in the school district have insufficient classroom space to accommodate the students from the closing attendance center, the school board shall instead implement the education voucher program under section 256E.4.
   b.  Every school district shall adopt a policy that defines the term “insufficient classroom space” for each attendance center in that district that is consistent with the policy adopted under section 282.18, subsection 2, paragraph “c”.
    Sec. 5.  NEW SECTION.  256E.4  Education voucher program.
   1.  a.  If a valid petition authorizing education vouchers is received by a school board under section 256E.2, or if section 256E.3, subsection 3, is applicable, students eligible to enroll in kindergarten through grade twelve and who are enrolled at the attendance center at the time the applicable petition is filed are eligible to receive education vouchers.
   b.  Education vouchers shall be made available to parents and guardians in the manner authorized under subsection 4, paragraph “c”, for the payment of qualified educational expenses as provided in this section.
   2.  a.  (1)  By January 31 preceding the school year for which the education voucher is requested, the parent or guardian of the student requesting to receive an education voucher shall submit an application to the department of education, on application forms developed by the department, indicating that the parent or guardian intends to enroll the student in a nonpublic school.
   (2)  In addition to other information deemed appropriate by the department of education, the application shall require certification from the nonpublic school of the student’s enrollment for the following school year.
   b.  By March 1 preceding the school year for which the education voucher is requested, the department of education shall notify the department of management of the number of students designated for the following school year to receive an education voucher. The department of education shall also notify the parent or guardian of such students who are approved to receive an education voucher.
   c.  Education vouchers shall only be approved for one school year per application, and applications must be submitted under paragraph “a” for education vouchers in subsequent school years.
   3.  The department of management shall assign each student an education voucher in an amount equal to seventy-five percent of the district of residence’s regular program district cost per pupil in the same school year.
   4.  An education voucher fund is created in the state treasury under the control of the department of management consisting of moneys appropriated to the department of management for the purpose of providing education vouchers under this section. For the fiscal year commencing July 1, 2018, and each succeeding fiscal year, there is appropriated from the general fund of the state to the department of management to be credited to the fund the amount necessary to pay all education vouchers approved for that fiscal year. The director of the department of management has all powers necessary to carry out and effectuate the purposes, objectives, and provisions of this section pertaining to the fund, including the power to do all of the following:
   a.  Make and enter into contracts necessary for the administration of the fund.
   b.  Procure insurance against any loss in connection with the assets of the fund or require a surety bond.
   c.  Contract with a private financial management firm to manage the fund, in collaboration with the treasurer of state, including providing for the disbursement of education vouchers in the form of an electronic debit card or checks that are payable directly from the student’s account in the fund.
   d.  Conduct audits or other review necessary to properly administer the program.
   e.  Adopt rules pursuant to chapter 17A for the administration of the fund and accounts in the fund.
   5.  a.  For each student approved for an education voucher, the department of management shall establish an account for that student in the education voucher fund. The student’s education voucher shall be deposited into the student’s account on July 1 and funds shall be immediately available for the payment of qualified educational expenses incurred by the parent or guardian for the student during that fiscal year using the payment method authorized under subsection 4, paragraph “c”.
   b.  A nonpublic school or other entity that accepts payment from a parent or guardian using funds from a student’s account in the education voucher fund shall not refund, rebate, or share any portion of such payment with the parent, guardian, or student.
   c.  Moneys remaining in a student’s account upon conclusion of the fiscal year shall remain in the student’s account in the education voucher fund for the payment of qualified educational expenses in future fiscal years during which the pupil participates in the program, unless subject to the transfer required under subsection 8.
   6.  a.  For purposes of this section, “qualified educational expenses” includes tuition and fees at a nonpublic school, textbooks, fees, or payments for educational therapies including tutoring or cognitive skills training, curriculum fees and materials for a course of study for a specific subject matter or grade level, tuition or fees for nonpublic online education programs, education materials and services for students with disabilities including the cost of paraprofessionals and assistants who are trained in accordance with state law, and other expenses incurred by the parent or guardian that are directly related to the education of the student at a nonpublic school, including a nonpublic school accredited by an independent accrediting agency approved by the department of education. “Qualified educational expenses” does not include transportation costs for the student, the cost of food or refreshments consumed by the student, the cost of clothing for the student, or the cost of disposable materials, including but not limited to paper, notebooks, pencils, pens, and art supplies.
   b.  For purposes of this section, “nonpublic school” means the same as defined in section 285.16.
   7.  A person who makes a false claim for the purpose of obtaining an education voucher provided for in this section or who knowingly receives the voucher or makes a payment from an account in the education voucher fund without being legally entitled to do so is guilty of a fraudulent practice under chapter 714. The false claim for an education voucher or a payment from an account shall be disallowed. If amounts from the voucher have been disbursed from the applicable account in the education voucher fund, the department of management shall initiate legal proceedings to recover such amounts. A parent or guardian who violates this subsection is prohibited from participating in the education voucher program in the future.
   8.  For each student with a positive balance in the student’s account in the education voucher fund upon graduation from high school or upon termination of the student’s enrollment in the nonpublic school, moneys in the student’s account shall be transferred by the department for deposit in the general fund of the state.
   9.  A nonpublic school that accepts payment from a parent or guardian using funds from a student’s account in the education voucher fund is not an agent of this state or other political subdivision of this state.
    Sec. 6.  Section 256F.3, subsection 2, paragraph a, Code 2017, is amended to read as follows:
   a.  (1)  To receive approval to establish a charter school in accordance with this chapter, the principal, teachers, or parents or guardians of students at an existing public school shall submit an application to the school board to convert an existing attendance center to a charter school. An attendance center shall not enter into a charter school contract with a school district under this chapter unless the attendance center is located within the school district.
   (2)  (a)  The Except as otherwise provided in subparagraph division (b), the application shall demonstrate the support of at least fifty percent of the teachers employed at the school on the date of the submission of the application and fifty percent of the parents or guardians voting whose children are enrolled at the school, provided that a majority of the parents or guardians eligible to vote participate in the ballot process, according to procedures established by rules of the state board.
   (b)  If the attendance center at which the charter school is to be established is identified by the department of education as a persistently lowest-achieving school within the meaning of section 256.9, subsection 55, the application shall demonstrate the support of at least fifty percent of the parents or guardians voting whose children are enrolled at the school, provided that a majority of the parents or guardians eligible to vote participate in the ballot process, according to procedures established by rules of the state board.
    Sec. 7.  Section 422.7, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  51.  Subtract, to the extent included, the amount of any education voucher under section 256E.4 received during the tax year by a taxpayer authorized to spend such voucher amounts for qualified educational expenses.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to persistently lowest-achieving schools by authorizing parents or guardians to petition for the closure of an attendance center, for implementation of an education voucher program, or for establishment of a charter school.
   Under the bill, if an attendance center is identified by the department of education as a persistently lowest-achieving school, the parents or guardians of students enrolled at the attendance center may submit a petition to the school board to either close the attendance center or authorize education vouchers for students of the attendance center. A valid petition must state whether the petition is requesting the closure of an attendance center or the authorization of education vouchers, and must contain the signatures at least 50 percent of the parents or guardians whose children are enrolled at the attendance center. A valid petition must be received by the school board not later than December 1 of the school year preceding the school year during which the requested action will be implemented. A petition received after that deadline will be considered a petition for the following school year if the attendance center continues to meet the criteria for a persistently lowest-achieving school.
   If a valid petition for closure of an attendance center is received, the school board shall formulate and implement a plan for the closure of the attendance center and a plan for the reallocation of students currently enrolled at the attendance center and those students who would, but for the closure, be enrolled at the attendance center during the next school year. The bill requires the plan for the reallocation of students to other attendance centers in the school district to include objective criteria and standards and criteria for prioritizing requests that do not have an adverse impact on the plan. If other attendance centers in the school district have insufficient classroom space to accommodate the students from the closing attendance center, the school board shall instead implement the education voucher program established in the bill.
   Under the bill, the following students shall be eligible to receive an education voucher: (1) students eligible to enroll in kindergarten through grade 12 who are enrolled at an attendance center at the time a petition authorizing education vouchers is filed with the school board and (2) students eligible to enroll in kindergarten through grade 12 who are enrolled at an attendance center that is to be closed under the bill and for whom there is insufficient classroom space at other attendance centers in the school district.
   By January 31 preceding the school year for which the education voucher is requested, the parent or guardian of the student requesting to receive an education voucher shall submit an application to the department of education, on application forms developed by the department, indicating that the parent or guardian intends to enroll the student in a nonpublic school. In addition to such information deemed appropriate by the department of education, the application shall require certification from the nonpublic school of the student’s enrollment for the following school year. By March 1 preceding the school year for which the education voucher is requested, the department of education shall notify the department of management of the number of students designated for the following school year to receive an education voucher. The department of education shall also notify the parent or guardian of such students who are approved to receive an education voucher.
   The bill authorizes education vouchers to be approved for one school year per application, and additional applications must be submitted for education vouchers in subsequent school years. The education voucher is in an amount equal to 75 percent of the district of residence’s regular program district cost per pupil in the same school year.
   For the fiscal year commencing July 1, 2018, and each succeeding fiscal year, the bill appropriates from the general fund of the state to the department of management to be credited to the education voucher fund an amount necessary to pay all education vouchers approved for that fiscal year. For each student approved for an education voucher, the department is required to establish an account for that student in the education voucher fund. The amount of the student’s education voucher shall be deposited into the student’s account on July 1 and such amount shall be immediately available for the payment of qualified educational expenses, as defined in the bill, incurred by the parent or guardian for the student during that fiscal year.
   The bill specifies that a nonpublic school or other entity that accepts payment from a parent or guardian using funds from a student’s account in the education voucher fund shall not refund, rebate, or share any portion of such payment with the parent, guardian, or student.
   Moneys remaining in a student’s account upon conclusion of the fiscal year shall remain in the student’s account in the education voucher fund for the payment of qualified educational expenses in future fiscal years during which the pupil participates in the program. However, for each student with a positive balance in the student’s account in the education voucher fund upon graduation from high school or upon termination of the student’s enrollment in the nonpublic school, those moneys in the student’s account shall be transferred for deposit in the general fund of the state.
   The bill provides that a person who makes a false claim for the purpose of obtaining an education voucher or who knowingly receives the voucher or makes a payment from an account within the education voucher fund without being legally entitled to do so is guilty of a fraudulent practice and is subject to a criminal penalty. The bill allows the department of management to initiate legal proceedings to recover vouchers and amounts improperly awarded or paid from accounts under the bill.
   The bill provides that a nonpublic school that accepts payment from a parent or guardian using funds from a student’s account in the education voucher fund is not an agent of this state or other political subdivision of this state.
   The bill provides that moneys from an education voucher under the bill are not taxable income under Code chapter 422.
   Code chapter 256F establishes a process by which the principal, teachers, or parents and guardians of students at an existing public school may apply to the school board to convert an existing attendance center to a charter school. Current law requires the application to demonstrate the support of at least 50 percent of the teachers employed at the school on the date of the submission of the application and 50 percent of the parents or guardians voting whose children are enrolled at the school, provided that a majority of the parents or guardians eligible to vote participate in the ballot process, according to procedures established by rules of the state board.
   The bill modifies the application requirements for converting an existing attendance center to a charter school if the attendance center is a persistently lowest-achieving school. Under those circumstances, the application does not need to demonstrate teacher support and shall only be required to demonstrate the support of at least 50 percent of the parents or guardians voting whose children are enrolled at the school, provided that a majority of the parents or guardians eligible to vote participate in the ballot process, according to procedures established by rules of the state board.