House
File
663
-
Introduced
HOUSE
FILE
663
BY
GASSMAN
A
BILL
FOR
An
Act
establishing
an
education
savings
grant
program
1
for
pupils
attending
a
nonpublic
school
or
receiving
2
competent
private
instruction,
establishing
an
education
3
savings
grant
fund,
providing
an
income
tax
exemption,
4
making
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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Section
1.
Section
8.6,
Code
2019,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
16.
Education
savings
grant
3
applications.
To
adopt
rules
relating
to
applications
for
an
4
education
savings
grant
pursuant
to
section
257.11B,
including
5
application
processing
timelines
and
information
required
to
be
6
submitted
by
a
parent
or
guardian.
7
Sec.
2.
NEW
SECTION
.
257.11B
Education
savings
grant
8
program.
9
1.
a.
For
the
school
budget
year
beginning
July
1,
2021,
10
and
each
succeeding
school
budget
year,
the
following
resident
11
pupils
who
are
attending
a
nonpublic
school,
as
defined
in
12
section
285.16,
or
receiving
competent
private
instruction
13
under
chapter
299A
shall
be
eligible
to
receive
an
education
14
savings
grant
in
the
manner
provided
in
this
section:
15
(1)
A
pupil
eligible
to
enroll
in
kindergarten.
16
(2)
A
pupil
who
received
an
education
savings
grant
for
17
the
immediately
preceding
school
budget
year,
who
is
eligible
18
to
enroll
in
grade
one
through
grade
twelve,
who
performed
at
19
or
above
the
statewide
average
on
assessments
and
evaluations
20
identified
in
subsection
2,
paragraph
“a”
,
subparagraph
(4),
21
and
who
is
not
otherwise
ineligible
under
this
section.
22
b.
For
purposes
of
this
subsection,
“resident”
means
the
23
same
as
defined
in
section
282.1,
subsection
2.
24
2.
a.
(1)
Except
as
provided
in
subparagraph
(2),
by
25
January
31
preceding
the
school
year
for
which
the
education
26
savings
grant
is
requested,
the
parent
or
guardian
of
the
pupil
27
requesting
to
receive
an
education
savings
grant
shall
submit
28
an
application
to
the
department
of
management,
on
application
29
forms
developed
by
the
department
of
management,
indicating
30
that
the
parent
or
guardian
intends
to
enroll
the
pupil
in
a
31
nonpublic
school
or
place
the
pupil
under
competent
private
32
instruction
under
chapter
299A.
33
(2)
For
pupils
under
subsection
1,
paragraph
“a”
,
34
subparagraph
(1),
by
January
31
preceding
the
school
year
35
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immediately
preceding
the
school
year
for
which
the
education
1
savings
grant
is
requested,
the
parent
or
guardian
of
the
pupil
2
requesting
to
receive
an
education
savings
grant
shall
submit
3
an
application
to
the
department
of
management,
on
application
4
forms
developed
by
the
department
of
management,
indicating
5
that
the
parent
or
guardian
intends
to
enroll
the
pupil
in
a
6
nonpublic
school
or
place
the
pupil
under
competent
private
7
instruction
under
chapter
299A.
8
(3)
In
addition
to
such
information
deemed
appropriate
by
9
the
department
of
management,
the
application
shall
require
10
certification
from
the
nonpublic
school
of
the
pupil’s
11
enrollment
for
the
applicable
school
year
or
a
statement
from
12
the
intended
provider
of
competent
private
instruction
for
the
13
pupil
for
the
applicable
school
year.
14
(4)
Applications
submitted
for
pupils
other
than
those
15
identified
in
subsection
1,
paragraph
“a”
,
subparagraph
16
(1),
shall
include
evidence
of
the
pupil’s
completion
and
17
performance
on
each
statewide
assessment
administered
to
the
18
pupil
required
by
the
pupil’s
nonpublic
school
or,
for
pupils
19
receiving
competent
private
instruction,
each
evaluation
20
conducted
under
section
299A.4.
21
b.
(1)
Except
as
provided
in
subparagraph
(2),
by
March
22
1
preceding
the
school
year
for
which
the
education
savings
23
grant
is
requested,
the
department
of
management
shall
notify
24
the
parent
or
guardian
of
each
pupil
approved
for
the
following
25
school
year
to
receive
an
education
savings
grant
and
the
26
amount
of
the
education
savings
grant
for
the
pupil.
27
(2)
For
pupils
under
subsection
1,
paragraph
“a”
,
28
subparagraph
(1),
by
March
1
preceding
the
school
year
29
immediately
preceding
the
school
year
for
which
the
education
30
savings
grant
is
requested,
the
department
of
management
shall
31
notify
the
parent
or
guardian
of
each
pupil
approved
for
the
32
applicable
school
year
to
receive
an
education
savings
grant
33
and
the
amount
of
the
education
savings
grant
for
the
pupil.
34
c.
Education
savings
grants
shall
only
be
approved
for
one
35
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school
year
and
applications
must
be
submitted
annually
for
1
education
savings
grants
in
subsequent
school
years.
2
3.
The
department
of
management
shall
assign
each
pupil
3
an
education
savings
grant
in
an
amount
equal
to
two
thousand
4
dollars.
5
4.
An
education
savings
grant
fund
is
created
in
the
state
6
treasury
under
the
control
of
the
department
of
management
7
consisting
of
moneys
appropriated
to
the
department
of
8
management
for
the
purpose
of
providing
education
savings
9
grants
under
this
section.
For
the
fiscal
year
commencing
July
10
1,
2021,
and
each
succeeding
fiscal
year,
there
is
appropriated
11
from
the
general
fund
of
the
state
to
the
department
of
12
management
to
be
credited
to
the
fund
the
amount
necessary
13
to
pay
all
education
savings
grants
approved
for
that
fiscal
14
year.
The
director
of
the
department
of
management
has
all
15
powers
necessary
to
carry
out
and
effectuate
the
purposes,
16
objectives,
and
provisions
of
this
section
pertaining
to
the
17
fund,
including
the
power
to
do
all
of
the
following:
18
a.
Make
and
enter
into
contracts
necessary
for
the
19
administration
of
the
fund.
20
b.
Procure
insurance
against
any
loss
in
connection
with
the
21
assets
of
the
fund
or
require
a
surety
bond.
22
c.
Contract
with
a
private
financial
management
firm
to
23
manage
the
fund,
in
collaboration
with
the
treasurer
of
state,
24
including
providing
for
the
disbursement
of
education
savings
25
grants
in
the
form
of
an
electronic
debit
card
or
checks
that
26
are
payable
directly
from
the
pupil’s
account
within
the
fund.
27
d.
Conduct
audits
or
other
reviews
necessary
to
properly
28
administer
the
program.
29
e.
Adopt
rules
under
chapter
17A
for
the
administration
of
30
the
fund
and
accounts
within
the
fund.
31
5.
a.
For
each
pupil
approved
for
an
education
savings
32
grant,
the
department
of
management
shall
establish
an
33
account
for
that
pupil
in
the
education
savings
grant
fund.
34
Unless
already
made
available
to
the
parent
or
guardian
under
35
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paragraph
“b”
,
the
amount
of
the
pupil’s
education
savings
grant
1
shall
be
deposited
into
the
pupil’s
account
on
July
1,
and
such
2
amount
shall
be
immediately
available
to
the
parent
or
guardian
3
for
the
payment
of
qualified
educational
expenses
incurred
4
by
the
parent
or
guardian
for
the
pupil
during
that
fiscal
5
year
using
the
payment
method
authorized
under
subsection
4,
6
paragraph
“c”
.
7
b.
Upon
written
request
of
the
parent
or
guardian,
the
8
amount
of
the
pupil’s
education
savings
grant
shall
be
9
deposited
into
the
pupil’s
account
and
be
made
available
10
as
soon
as
practicable
after
the
department
of
management
11
provides
notice
under
subsection
2,
paragraph
“b”
,
if
qualified
12
educational
expenses
for
the
pupil
for
the
applicable
school
13
year
are
due
prior
to
July
1
of
the
school
year.
14
c.
A
nonpublic
school
or
a
provider
of
competent
private
15
instruction
that
accepts
payment
from
a
parent
or
guardian
16
using
funds
from
a
pupil’s
account
in
the
education
savings
17
grant
fund
shall
not
refund,
rebate,
or
share
any
portion
of
18
such
payment
with
the
parent,
guardian,
or
pupil.
19
d.
Moneys
remaining
in
a
pupil’s
account
upon
conclusion
20
of
the
fiscal
year
shall
remain
in
the
pupil’s
account
in
the
21
education
savings
grant
fund
for
the
payment
of
qualified
22
educational
expenses
in
future
fiscal
years
during
which
23
the
pupil
participates
in
the
program
or
for
the
payment
24
of
qualified
higher
education
expenses
as
provided
under
25
subsection
8.
26
6.
a.
For
purposes
of
this
section,
“qualified
educational
27
expenses”
includes
tuition
and
fees
at
a
nonpublic
school,
28
textbooks,
fees
or
payments
for
educational
therapies,
29
including
tutoring
or
cognitive
skills
training,
curriculum
30
fees
and
materials
for
a
course
of
study
for
a
specific
subject
31
matter
or
grade
level,
tuition
or
fees
for
nonpublic
online
32
education
programs,
education
materials
and
services
for
pupils
33
with
disabilities,
including
the
cost
of
paraprofessionals
34
and
assistants
who
are
trained
in
accordance
with
state
law,
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standardized
test
fees,
qualified
higher
education
expenses,
1
as
defined
in
section
12D.1,
subsection
2,
paragraph
“k”
,
2
excluding
room
and
board
expenses,
and
other
expenses
incurred
3
by
the
parent
or
guardian
that
are
directly
related
to
the
4
education
of
the
pupil
under
competent
private
instruction
or
5
at
a
nonpublic
school,
including
a
nonpublic
school
accredited
6
by
an
independent
accrediting
agency
approved
by
the
department
7
of
education.
8
b.
“Qualified
educational
expenses”
does
not
include
9
transportation
costs
for
the
pupil,
the
cost
of
food
or
10
refreshments
consumed
by
the
pupil,
the
cost
of
clothing
for
11
the
pupil,
or
the
cost
of
disposable
materials,
including
12
but
not
limited
to
paper,
notebooks,
pencils,
pens,
and
art
13
supplies.
14
7.
A
person
who
makes
a
false
claim
for
the
purpose
15
of
obtaining
an
education
savings
grant
provided
for
in
16
this
section
or
who
knowingly
receives
the
grant
or
makes
a
17
payment
from
an
account
within
the
education
savings
grant
18
fund
without
being
legally
entitled
to
do
so
is
guilty
of
a
19
fraudulent
practice
under
chapter
714.
The
false
claim
for
an
20
education
savings
grant
or
a
payment
from
an
account
shall
be
21
disallowed.
If
amounts
from
the
grant
have
been
disbursed
from
22
the
applicable
account
in
the
education
savings
grant
fund,
the
23
department
of
management
shall
initiate
legal
proceedings
to
24
recover
such
amounts.
A
parent
or
guardian,
or
a
pupil
for
25
purposes
of
subsection
8,
who
commits
a
fraudulent
practice
26
under
this
subsection
is
prohibited
from
participating
in
the
27
education
savings
grant
program
in
the
future.
28
8.
a.
For
each
pupil
with
a
positive
balance
in
the
29
pupil’s
account
in
the
education
savings
grant
fund
upon
30
graduation
from
high
school
or
completion
of
an
equivalent
31
level
of
competent
private
instruction
under
chapter
299A,
the
32
department
of
management
shall
maintain
the
account
in
the
33
fund
until
the
pupil
is
twenty-three
years
of
age.
Following
34
graduation
from
high
school
until
the
pupil
is
twenty-three
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years
of
age,
moneys
in
the
pupil’s
account
may
be
used
for
1
qualified
higher
education
expenses,
as
defined
in
section
2
12D.1,
subsection
2,
paragraph
“k”
,
incurred
by
the
pupil
while
3
attending
an
institution
of
higher
education
under
the
control
4
of
the
state
board
of
regents,
a
community
college
located
in
5
this
state,
or
a
private
college
or
university
located
in
this
6
state.
Payments
from
a
pupil’s
account
for
qualified
higher
7
education
expenses
shall
be
made
in
the
same
manner
as
payments
8
for
qualified
educational
expenses
under
subsection
5.
Moneys
9
in
a
pupil’s
account
when
the
pupil
turns
twenty-three
years
of
10
age
shall
be
transferred
by
the
department
of
management
for
11
deposit
in
the
general
fund
of
the
state.
12
b.
Notwithstanding
the
age
limitation
in
paragraph
“a”
,
13
if
the
pupil
with
a
positive
balance
in
the
pupil’s
account
14
in
the
education
savings
grant
fund
upon
graduation
from
high
15
school
or
completion
of
an
equivalent
level
of
competent
16
private
instruction
under
chapter
299A
serves
on
federal
active
17
duty,
other
than
training,
and
is
discharged
under
honorable
18
conditions,
the
limitation
date
otherwise
applicable
under
19
paragraph
“a”
shall
be
extended
by
one
year
for
each
year
of
20
federal
active
duty
service
by
the
pupil,
but
not
to
a
date
21
after
the
pupil’s
twenty-seventh
birthday.
22
9.
This
section
shall
not
be
construed
to
authorize
the
23
state
or
any
political
subdivision
of
the
state
to
exercise
24
authority
over
any
nonpublic
school
or
provider
of
competent
25
private
instruction
under
chapter
299A
or
construed
to
require
26
a
nonpublic
school
to
modify
its
standards
for
admission
27
or
educational
program
in
order
to
receive
payment
from
a
28
parent
or
guardian
using
funds
from
a
pupil’s
account
in
the
29
education
savings
grant
fund.
A
nonpublic
school
or
provider
30
of
competent
private
instruction
that
accepts
payment
from
a
31
parent
or
guardian
using
funds
from
a
pupil’s
account
in
the
32
education
savings
grant
fund
is
not
an
agent
of
this
state
or
33
of
a
political
subdivision
of
this
state.
Rules
adopted
by
the
34
department
of
management
to
implement
this
section
that
impose
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an
undue
burden
on
a
nonpublic
school
or
provider
of
competent
1
private
instruction
are
invalid.
2
Sec.
3.
Section
422.7,
Code
2019,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
48.
Subtract,
to
the
extent
included,
the
5
amount
of
an
education
savings
grant
under
section
257.11B
6
received
by
the
taxpayer
for
payment
of
qualified
educational
7
expenses.
8
Sec.
4.
APPLICABILITY.
The
following
applies
to
school
9
budget
years
and
fiscal
years
beginning
on
or
after
July
1,
10
2021:
11
The
section
of
this
Act
enacting
section
257.11B.
12
Sec.
5.
APPLICABILITY.
The
following
applies
to
tax
years
13
beginning
on
or
after
January
1,
2021:
14
The
section
of
this
Act
enacting
section
422.7,
subsection
15
48.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
provides
education
savings
grants
for
pupils
20
attending
a
nonpublic
school
or
receiving
competent
private
21
instruction
and
establishes
an
education
savings
grant
fund.
22
Under
the
bill,
the
following
pupils
who
meet
certain
23
assessment
and
evaluation
standards
and
who
attend
a
nonpublic
24
school
or
are
placed
under
competent
private
instruction
under
25
Code
chapter
299A
are
eligible
to
receive
an
education
savings
26
grant:
(1)
a
pupil
eligible
to
enroll
in
kindergarten;
and
27
(2)
a
pupil
who
received
an
education
savings
grant
for
the
28
immediately
preceding
school
budget
year
and
who
is
eligible
29
to
enroll
in
grade
1
through
grade
12.
The
parent
or
guardian
30
of
the
pupil
requesting
to
receive
an
education
savings
grant
31
must
submit
an
application
to
the
department
of
management
32
indicating
that
the
parent
or
guardian
intends
to
enroll
the
33
pupil
in
a
nonpublic
school
or
provide
competent
private
34
instruction.
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The
bill
requires
that
by
March
1
preceding
the
school
1
year
for
which
the
education
savings
grant
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
savings
grant
and
the
amount
of
the
education
savings
5
grant
for
the
pupil.
Education
savings
grants
must
be
approved
6
for
each
school
year
and
applications
must
be
submitted
each
7
year.
8
The
bill
creates
an
education
savings
grant
fund
in
9
the
state
treasury
under
the
control
of
the
department
of
10
management
consisting
of
moneys
appropriated
to
the
department
11
of
management
for
the
purpose
of
providing
education
savings
12
grants.
For
the
fiscal
year
commencing
July
1,
2021,
and
each
13
succeeding
fiscal
year,
there
is
appropriated
from
the
general
14
fund
of
the
state
to
the
department
of
management
for
deposit
15
in
the
fund
the
amount
necessary
to
pay
all
education
savings
16
grants
approved
for
that
fiscal
year.
For
each
pupil
approved
17
for
an
education
savings
grant,
the
department
of
management
18
must
establish
an
account
for
that
pupil
in
the
education
19
savings
grant
fund.
The
amount
of
the
pupil’s
education
20
savings
grant
is
deposited
into
the
pupil’s
account
on
July
1
21
and
such
amount
is
available
for
use
by
parents
and
guardians
22
for
the
payment
of
qualified
educational
expenses,
as
defined
23
in
the
bill,
incurred
by
the
parent
or
guardian
for
the
pupil
24
during
that
fiscal
year.
25
Upon
written
request
of
the
parent
or
guardian,
the
amount
of
26
the
pupil’s
education
savings
grant
shall
be
deposited
into
the
27
pupil’s
account
and
be
made
available
as
soon
as
practicable
28
after
the
notice
of
receipt
of
the
grant
is
given
to
the
parent
29
or
guardian
if
qualified
educational
expenses
for
the
pupil
30
for
the
applicable
school
year
are
due
prior
to
July
1
of
the
31
school
year.
32
The
bill
authorizes
the
department
of
management
to
33
contract
with
a
private
financial
management
firm
to
manage
34
the
education
savings
grant
fund,
in
collaboration
with
the
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treasurer
of
state,
including
providing
for
the
disbursement
1
of
education
savings
grants
in
the
form
of
an
electronic
debit
2
card
or
checks
that
are
payable
directly
from
the
pupil’s
3
account
within
the
fund.
4
The
bill
provides
that
moneys
remaining
in
a
pupil’s
account
5
upon
the
conclusion
of
the
fiscal
year
shall
remain
in
the
6
pupil’s
account
in
the
education
savings
grant
fund
for
the
7
payment
of
qualified
educational
expenses
in
future
fiscal
8
years
during
which
the
pupil
participates
in
the
program
or
for
9
qualified
higher
education
expenses
as
authorized
in
the
bill.
10
Under
the
bill,
for
each
pupil
with
a
positive
balance
in
11
the
pupil’s
account
in
the
education
savings
grant
fund
upon
12
graduation
from
high
school
or
completion
of
an
equivalent
13
level
of
competent
private
instruction
under
Code
chapter
14
299A,
the
department
of
management
is
required
to
maintain
the
15
account
in
the
fund
until
the
pupil
reaches
an
age
specified
in
16
the
bill.
Until
the
pupil
reaches
the
age
limitation,
moneys
17
in
the
pupil’s
account
may
be
used
by
the
pupil
for
qualified
18
higher
education
expenses.
Moneys
in
a
pupil’s
account
when
19
the
pupil
reaches
the
age
limitation
are
transferred
by
the
20
department
of
management
for
deposit
in
the
general
fund
of
the
21
state.
22
The
bill
provides
that
a
person
who
makes
a
false
claim
for
23
the
purpose
of
obtaining
an
education
savings
grant
or
who
24
knowingly
receives
the
grant
or
makes
a
payment
from
an
account
25
within
the
education
savings
grant
fund
without
being
legally
26
entitled
to
do
so
is
guilty
of
a
fraudulent
practice
and
is
27
subject
to
a
criminal
penalty.
The
bill
allows
the
department
28
of
management
to
initiate
legal
proceedings
to
recover
grants
29
and
amounts
improperly
awarded
or
paid
from
accounts
under
the
30
bill.
31
The
bill
provides
that
an
education
savings
grant
received
32
by
a
taxpayer
is
not
taxable
income
for
purposes
of
state
33
individual
income
taxation.
This
provision
of
the
bill
applies
34
to
tax
years
beginning
on
or
after
January
1,
2021.
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The
section
of
the
bill
enacting
the
education
savings
1
grant
program
applies
to
school
budget
years
and
fiscal
years
2
beginning
on
or
after
July
1,
2021.
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