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Senate File 572 - IntroducedA Bill ForAn Act 1relating to certain education programs and tax credits
2and including effective date, applicability, and retroactive
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2TUITION AND TEXTBOOK TAX CREDIT
3 Section 1. Section 422.12, subsection 2, paragraph b, Code
42023, is amended to read as follows:
5b. A tuition credit equal to twenty-five percent of the
6first two thousand dollars which the taxpayer has paid to
7others for each dependent in grades kindergarten through
8twelve, for tuition and textbooks of each dependent who
9is receiving private instruction or who is attending an
10elementary or secondary school situated in Iowa, which school
11is accredited or approved under section 256.11, which is not
12operated for profit, and which adheres to the provisions of
13the federal Civil Rights Act of 1964 and chapter 216. Amounts
14paid from an account in the education savings account fund
15under section 257.11B, as enacted by 2023 Iowa Acts, House File
1668, section 7, shall not be eligible for the credit under this
17paragraph. Notwithstanding any other provision, all other
18credits allowed under this subsection shall be deducted before
19the tuition credit under this paragraph. The department, when
20conducting an audit of a taxpayer’s return, shall also audit
21the tuition tax credit portion of the tax return.
22 Sec. 2. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24 Sec. 3. RETROACTIVE APPLICABILITY. This division of this
25Act applies retroactively to tax years beginning on or after
26January 1, 2023.
27DIVISION II
28SCHOOL TUITION ORGANIZATION GRANTS
29 Sec. 4. Section 422.11S, subsection 6, paragraph c,
30subparagraph (1), Code 2023, is amended to read as follows:
31(1) Allocates at least ninety percent of its annual revenue
32within three calendar years from January 1 of the calendar year
33during which the revenues were received in tuition grants for
34children to allow them to attend a qualified school of their
35parents’ choice.
-1-1 Sec. 5. Section 422.11S, subsection 6, paragraph c, Code
22023, is amended by adding the following new subparagraph:
3 NEW SUBPARAGRAPH. (05) For eligible students participating
4in the education savings account program under section 257.11B,
5as enacted by 2023 Iowa Acts, House File 68, section 7, only
6provides tuition grants in amounts not to exceed the tuition
7amount for which the parent or guardian is responsible for
8payment following application of amounts paid using moneys from
9the student’s account in the education savings account fund.
10 Sec. 6. Section 422.11S, subsection 8, paragraph a,
11subparagraph (2), Code 2023, is amended to read as follows:
12(2) “Total approved tax credits” means for the 2006 calendar
13year, two million five hundred thousand dollars, for the
142007 calendar year, five million dollars, for calendar years
15beginning on or after January 1, 2008, but before January 1,
162012, seven million five hundred thousand dollars, for calendar
17years beginning on or after January 1, 2012, but before January
181, 2014, eight million seven hundred fifty thousand dollars,
19for calendar years beginning on or after January 1, 2014, but
20before January 1, 2019, twelve million dollars, for calendar
21years beginning on or after January 1, 2019, but before
22January 1, 2020, thirteen million dollars, for calendar years
23beginning on or after January 1, 2020, but before January
241, 2022, fifteen million dollars, and for calendar years
25beginning on or after January 1, 2022, but before January 1,
262024, twenty million dollars, for the calendar year beginning
27January 1, 2024, seventeen million dollars, and for calendar
28years beginning on or after January 1, 2025, fourteen million
29dollars.
30 Sec. 7. RETROACTIVE APPLICABILITY. The section of this
31division of this Act amending section 422.11S, subsection 6,
32paragraph “c”, subparagraph (1), applies retroactively to
33contributions to a school tuition organization made on or after
34January 1, 2022.
35 Sec. 8. APPLICABILITY. The section of this division of
-2-1this Act enacting section 422.11S, subsection 6, paragraph “c”,
2subparagraph (05), applies to tuition grants made for school
3years beginning on or after July 1, 2023.
4DIVISION III
5EDUCATION SAVINGS ACCOUNTS — ADMINISTRATION OF FUNDS
6 Sec. 9. Section 257.11B, subsection 6, paragraph c, as
7enacted by 2023 Iowa Acts, House File 68, section 7, is amended
8to read as follows:
9c. Moneys remaining in a pupil’s individual account upon
10conclusion of the fiscal year shall remain in the pupil’s
11individual account for the payment of qualified educational
12expenses in future consecutive fiscal years during which the
13pupil participates in the program until the pupil becomes
14ineligible under the program or until the remaining amounts are
15transferred to the state general fund under subsection 8. If
16moneys remain in a pupil’s individual account upon conclusion
17of the fiscal year and the pupil does not participate in the
18program during the immediately succeeding fiscal year, the
19department of education or third-party entity shall close the
20pupil’s account in the fund, and transfer any remaining moneys
21in the account for deposit in the general fund of the state.
22 Sec. 10. Section 257.11B, subsection 7, as enacted by 2023
23Iowa Acts, House File 68, section 7, is amended to read as
24follows:
257. a. A person who makes a false claim for the purpose of
26obtaining an education savings account payment or who knowingly
27receives the payment or makes a payment from an individual
28account within the fund without being legally entitled to do
29so is guilty of a fraudulent practice under chapter 714. The
30false claim for an education savings account or a payment from
31an individual account shall be disallowed. The department of
32education or third-party entity shall also close the pupil’s
33individual account in the fund and transfer any remaining
34moneys in the account for deposit in the general fund of the
35state. If the improperly obtained amounts have been disbursed
-3-1from the applicable individual account, the department of
2education or third-party entity shall recover such amounts
3from the parent or guardian, including by initiating legal
4proceedings to recover such amounts, if necessary. A parent or
5guardian who commits a fraudulent practice under this section
6is prohibited from participating in the education savings
7account program in the future.
8b. (1) If, prior to the end of the required attendance
9period of the school year, a pupil who receives an education
10savings account payment withdraws from enrollment in the
11nonpublic school or is expelled, the nonpublic school shall
12notify the department of education or third-party entity in
13writing of the pupil’s withdrawal or expulsion.
14(2) Upon receipt of a notice of expulsion, the department
15of education or third-party entity shall cease disbursements
16of remaining moneys in the pupil’s account, close the pupil’s
17account in the fund, and transfer any remaining moneys in the
18account for deposit in the general fund of the state.
19(3) Upon receipt of a notice of withdrawal and a
20determination that the pupil did not enroll in a different
21nonpublic school in this state for the remainder of the school
22year, the department of education or third-party entity shall
23cease disbursements of remaining moneys in the pupil’s account
24in the fund, close the pupil’s account, and transfer any moneys
25remaining in the pupil’s account for deposit in the general
26fund of the state.
27 Sec. 11. EFFECTIVE DATE. This division of this Act, being
28deemed of immediate importance, takes effect upon enactment.
29 Sec. 12. RETROACTIVE APPLICABILITY. This division of this
30Act applies retroactively to January 24, 2023.
31DIVISION IV
32NONPUBLIC SCHOOL PUPIL TEXTBOOK SERVICES
33 Sec. 13. Section 301.1, subsections 2 and 3, Code 2023, are
34amended by striking the subsections.
35 Sec. 14. EFFECTIVE DATE. This division of this Act takes
-4-1effect July 1, 2025.
2DIVISION V
3EDUCATION SAVINGS ACCOUNTS — CORRECTIONS
4 Sec. 15. Section 257.11B, subsection 2, paragraph a,
5subparagraph (1), subparagraph division (c), as enacted by 2023
6Iowa Acts, House File 68, section 7, is amended to read as
7follows:
8(c) A resident pupil who is eligible to enroll in grades one
9through twelve and was enrolled in a nonpublic school for the
10school year immediately preceding the school year for which the
11education savings account payment is requested if the pupil’s
12household has an annual income less than or equal to three
13hundred percent of the most recently revised poverty income
14guidelines published by the United States department of health
15and human services.
16 Sec. 16. Section 257.46, subsection 3, Code 2023, as amended
17by 2023 Iowa Acts, House File 68, section 16, is amended to
18read as follows:
193. If any portion of the gifted and talented program budget
20remains unexpended at the end of the budget year, the remainder
21shall be carried over to the subsequent budget year and added
22to the gifted and talented program budget for that year. At
23the end of a fiscal year beginning on or after July 1, 2022,
24the school district may use all or a portion of funds for
25the purposes authorized under section 257.10, subsection 9,
26paragraph “d”.
27 Sec. 17. EFFECTIVE DATE. This division of this Act, being
28deemed of immediate importance, takes effect upon enactment.
29 Sec. 18. RETROACTIVE APPLICABILITY. This division of this
30Act applies retroactively to January 24, 2023.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to certain education programs and tax
35credits.
-5- 1DIVISION I — TUITION AND TEXTBOOK TAX CREDIT. Code section
2422.12(2)(b) provides an income tax tuition credit equal to
325 percent of the first $2,000 which the taxpayer has paid to
4others for each dependent in grades kindergarten through 12,
5for tuition and textbooks of each dependent who is receiving
6private instruction or who is attending an elementary or
7secondary school situated in Iowa meeting certain criteria.
8The bill specifies that amounts paid from an account in the
9education savings account fund under Code section 257.11B, as
10enacted by 2023 Iowa Acts, House File 68, shall not be eligible
11for the credit.
12Division I takes effect upon enactment and applies
13retroactively to tax years beginning on or after January 1,
142023.
15DIVISION II — SCHOOL TUITION ORGANIZATION GRANTS.
16 Code sections 422.11S and 422.33 provide a school tuition
17organization tax credit against the individual income tax
18and corporate income tax, respectively, for contributions
19made by the taxpayer during the tax year to a school tuition
20organization. The bill adds a requirement to the criteria for
21a school tuition organization by specifying that for eligible
22students participating in the education savings account program
23under Code section 257.11B, the organization only provides
24tuition grants in amounts not to exceed the tuition amount
25for which the parent or guardian is responsible for payment
26following application of amounts paid using moneys from the
27student’s account in the education savings account fund. This
28provision applies to tuition grants made for school years
29beginning on or after July 1, 2023.
30The bill requires school tuition organizations to allocate
3190 percent of annual revenues as tuition grants within three
32years from January 1 of the calendar year during which the
33revenues were received. This provision applies retroactively
34to contributions to a school tuition organization made on or
35after January 1, 2022.
-6- 1The bill also reduces the total annual amount of available
2school tuition organization tax credits for the calendar year
3beginning January 1, 2024, from $20 million to $17 million, and
4to $14 million for calendar years beginning on or after January
51, 2025.
6DIVISION III — EDUCATION SAVINGS ACCOUNTS — ADMINISTRATION
7OF FUNDS. Code section 257.11B, as enacted by 2023 Iowa Acts,
8House File 68, section 7, specifies that moneys remaining in a
9pupil’s individual account upon conclusion of the fiscal year
10shall remain in the pupil’s individual account for the payment
11of qualified educational expenses in future fiscal years during
12which the pupil participates in the program until the pupil
13becomes ineligible under the program or until the remaining
14amounts are transferred to the state general fund as required
15in that Code section. The bill provides that such remaining
16moneys are available for future consecutive fiscal years during
17which the pupil participates in the program. The bill further
18provides that if moneys remain in a pupil’s individual account
19upon conclusion of the fiscal year and the pupil does not
20participate in the program during the immediately succeeding
21fiscal year, the department of education or third-party entity
22shall close the pupil’s account in the fund, and transfer any
23remaining moneys in the account for deposit in the general fund
24of the state.
25The bill also amends the education savings account program
26under Code section 257.11B by providing that if, prior to the
27end of the required attendance period of the school year,
28a pupil who receives an education savings account payment
29withdraws from enrollment in the nonpublic school or is
30expelled, the nonpublic school shall notify the department
31of education or third-party entity in writing of the pupil’s
32withdrawal or expulsion. Under the bill, upon receipt of a
33notice of expulsion, the department of education or third-party
34entity shall cease disbursements of remaining moneys in the
35pupil’s account, close the pupil’s account in the fund, and
-7-1transfer any remaining moneys in the account for deposit in
2the general fund of the state. Additionally, upon receipt of
3a notice of withdrawal and a determination that the pupil did
4not enroll in a different nonpublic school in this state for
5the remainder of the school year, the department of education
6or third-party entity shall cease disbursements of remaining
7moneys in the pupil’s account in the fund, close the pupil’s
8account, and transfer any moneys remaining in the pupil’s
9account for deposit in the general fund of the state.
10Division III takes effect upon enactment and applies
11retroactively to January 24, 2023.
12DIVISION IV — NONPUBLIC SCHOOL PUPIL TEXTBOOK SERVICES.
13 Code section 301.1 authorizes each school board to adopt
14textbooks for the district, and to contract for and buy such
15books and any and all other necessary school supplies at
16contract prices, and to sell them to the pupils of their
17respective districts at cost, loan such textbooks to such
18pupils free, or rent them to pupils. In addition, Code section
19301.1, subsections 2 and 3, provides that textbooks adopted
20and purchased by a school district shall, to the extent funds
21are appropriated by the general assembly, be made available to
22pupils attending accredited nonpublic schools upon request of
23the pupil or the pupil’s parent under comparable terms as made
24available to pupils attending public schools. The bill strikes
25those subsections of Code section 301.1 relating to a school
26district making such textbooks available to pupils attending
27nonpublic schools.
28Division IV takes effect July 1, 2025.
29DIVISION V — EDUCATION SAVINGS ACCOUNTS — CORRECTIONS.
30 Division V corrects errors and omissions in Code section
31257.11B, as enacted by 2023 Iowa Acts, House File 68, section
327.
33Division V takes effect upon enactment and applies
34retroactively to January 24, 2023.
-8-md/jh
2and including effective date, applicability, and retroactive
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2TUITION AND TEXTBOOK TAX CREDIT
3 Section 1. Section 422.12, subsection 2, paragraph b, Code
42023, is amended to read as follows:
5b. A tuition credit equal to twenty-five percent of the
6first two thousand dollars which the taxpayer has paid to
7others for each dependent in grades kindergarten through
8twelve, for tuition and textbooks of each dependent who
9is receiving private instruction or who is attending an
10elementary or secondary school situated in Iowa, which school
11is accredited or approved under section 256.11, which is not
12operated for profit, and which adheres to the provisions of
13the federal Civil Rights Act of 1964 and chapter 216. Amounts
14paid from an account in the education savings account fund
15under section 257.11B, as enacted by 2023 Iowa Acts, House File
1668, section 7, shall not be eligible for the credit under this
17paragraph. Notwithstanding any other provision, all other
18credits allowed under this subsection shall be deducted before
19the tuition credit under this paragraph. The department, when
20conducting an audit of a taxpayer’s return, shall also audit
21the tuition tax credit portion of the tax return.
22 Sec. 2. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24 Sec. 3. RETROACTIVE APPLICABILITY. This division of this
25Act applies retroactively to tax years beginning on or after
26January 1, 2023.
27DIVISION II
28SCHOOL TUITION ORGANIZATION GRANTS
29 Sec. 4. Section 422.11S, subsection 6, paragraph c,
30subparagraph (1), Code 2023, is amended to read as follows:
31(1) Allocates at least ninety percent of its annual revenue
32within three calendar years from January 1 of the calendar year
33during which the revenues were received in tuition grants for
34children to allow them to attend a qualified school of their
35parents’ choice.
-1-1 Sec. 5. Section 422.11S, subsection 6, paragraph c, Code
22023, is amended by adding the following new subparagraph:
3 NEW SUBPARAGRAPH. (05) For eligible students participating
4in the education savings account program under section 257.11B,
5as enacted by 2023 Iowa Acts, House File 68, section 7, only
6provides tuition grants in amounts not to exceed the tuition
7amount for which the parent or guardian is responsible for
8payment following application of amounts paid using moneys from
9the student’s account in the education savings account fund.
10 Sec. 6. Section 422.11S, subsection 8, paragraph a,
11subparagraph (2), Code 2023, is amended to read as follows:
12(2) “Total approved tax credits” means for the 2006 calendar
13year, two million five hundred thousand dollars, for the
142007 calendar year, five million dollars, for calendar years
15beginning on or after January 1, 2008, but before January 1,
162012, seven million five hundred thousand dollars, for calendar
17years beginning on or after January 1, 2012, but before January
181, 2014, eight million seven hundred fifty thousand dollars,
19for calendar years beginning on or after January 1, 2014, but
20before January 1, 2019, twelve million dollars, for calendar
21years beginning on or after January 1, 2019, but before
22January 1, 2020, thirteen million dollars, for calendar years
23beginning on or after January 1, 2020, but before January
241, 2022, fifteen million dollars, and for calendar years
25beginning on or after January 1, 2022, but before January 1,
262024, twenty million dollars, for the calendar year beginning
27January 1, 2024, seventeen million dollars, and for calendar
28years beginning on or after January 1, 2025, fourteen million
29dollars.
30 Sec. 7. RETROACTIVE APPLICABILITY. The section of this
31division of this Act amending section 422.11S, subsection 6,
32paragraph “c”, subparagraph (1), applies retroactively to
33contributions to a school tuition organization made on or after
34January 1, 2022.
35 Sec. 8. APPLICABILITY. The section of this division of
-2-1this Act enacting section 422.11S, subsection 6, paragraph “c”,
2subparagraph (05), applies to tuition grants made for school
3years beginning on or after July 1, 2023.
4DIVISION III
5EDUCATION SAVINGS ACCOUNTS — ADMINISTRATION OF FUNDS
6 Sec. 9. Section 257.11B, subsection 6, paragraph c, as
7enacted by 2023 Iowa Acts, House File 68, section 7, is amended
8to read as follows:
9c. Moneys remaining in a pupil’s individual account upon
10conclusion of the fiscal year shall remain in the pupil’s
11individual account for the payment of qualified educational
12expenses in future consecutive fiscal years during which the
13pupil participates in the program until the pupil becomes
14ineligible under the program or until the remaining amounts are
15transferred to the state general fund under subsection 8. If
16moneys remain in a pupil’s individual account upon conclusion
17of the fiscal year and the pupil does not participate in the
18program during the immediately succeeding fiscal year, the
19department of education or third-party entity shall close the
20pupil’s account in the fund, and transfer any remaining moneys
21in the account for deposit in the general fund of the state.
22 Sec. 10. Section 257.11B, subsection 7, as enacted by 2023
23Iowa Acts, House File 68, section 7, is amended to read as
24follows:
257. a. A person who makes a false claim for the purpose of
26obtaining an education savings account payment or who knowingly
27receives the payment or makes a payment from an individual
28account within the fund without being legally entitled to do
29so is guilty of a fraudulent practice under chapter 714. The
30false claim for an education savings account or a payment from
31an individual account shall be disallowed. The department of
32education or third-party entity shall also close the pupil’s
33individual account in the fund and transfer any remaining
34moneys in the account for deposit in the general fund of the
35state. If the improperly obtained amounts have been disbursed
-3-1from the applicable individual account, the department of
2education or third-party entity shall recover such amounts
3from the parent or guardian, including by initiating legal
4proceedings to recover such amounts, if necessary. A parent or
5guardian who commits a fraudulent practice under this section
6is prohibited from participating in the education savings
7account program in the future.
8b. (1) If, prior to the end of the required attendance
9period of the school year, a pupil who receives an education
10savings account payment withdraws from enrollment in the
11nonpublic school or is expelled, the nonpublic school shall
12notify the department of education or third-party entity in
13writing of the pupil’s withdrawal or expulsion.
14(2) Upon receipt of a notice of expulsion, the department
15of education or third-party entity shall cease disbursements
16of remaining moneys in the pupil’s account, close the pupil’s
17account in the fund, and transfer any remaining moneys in the
18account for deposit in the general fund of the state.
19(3) Upon receipt of a notice of withdrawal and a
20determination that the pupil did not enroll in a different
21nonpublic school in this state for the remainder of the school
22year, the department of education or third-party entity shall
23cease disbursements of remaining moneys in the pupil’s account
24in the fund, close the pupil’s account, and transfer any moneys
25remaining in the pupil’s account for deposit in the general
26fund of the state.
27 Sec. 11. EFFECTIVE DATE. This division of this Act, being
28deemed of immediate importance, takes effect upon enactment.
29 Sec. 12. RETROACTIVE APPLICABILITY. This division of this
30Act applies retroactively to January 24, 2023.
31DIVISION IV
32NONPUBLIC SCHOOL PUPIL TEXTBOOK SERVICES
33 Sec. 13. Section 301.1, subsections 2 and 3, Code 2023, are
34amended by striking the subsections.
35 Sec. 14. EFFECTIVE DATE. This division of this Act takes
-4-1effect July 1, 2025.
2DIVISION V
3EDUCATION SAVINGS ACCOUNTS — CORRECTIONS
4 Sec. 15. Section 257.11B, subsection 2, paragraph a,
5subparagraph (1), subparagraph division (c), as enacted by 2023
6Iowa Acts, House File 68, section 7, is amended to read as
7follows:
8(c) A resident pupil who is eligible to enroll in grades one
9through twelve and was enrolled in a nonpublic school for the
10school year immediately preceding the school year for which the
11education savings account payment is requested if the pupil’s
12household has an annual income less than or equal to three
13hundred percent of the most recently revised poverty income
14guidelines published by the United States department of health
15and human services.
16 Sec. 16. Section 257.46, subsection 3, Code 2023, as amended
17by 2023 Iowa Acts, House File 68, section 16, is amended to
18read as follows:
193. If any portion of the gifted and talented program budget
20remains unexpended at the end of the budget year, the remainder
21shall be carried over to the subsequent budget year and added
22to the gifted and talented program budget for that year. At
23the end of a fiscal year beginning on or after July 1, 2022,
24the school district may use all or a portion of funds for
25the purposes authorized under section 257.10, subsection 9,
26paragraph “d”.
27 Sec. 17. EFFECTIVE DATE. This division of this Act, being
28deemed of immediate importance, takes effect upon enactment.
29 Sec. 18. RETROACTIVE APPLICABILITY. This division of this
30Act applies retroactively to January 24, 2023.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to certain education programs and tax
35credits.
-5- 1DIVISION I — TUITION AND TEXTBOOK TAX CREDIT. Code section
2422.12(2)(b) provides an income tax tuition credit equal to
325 percent of the first $2,000 which the taxpayer has paid to
4others for each dependent in grades kindergarten through 12,
5for tuition and textbooks of each dependent who is receiving
6private instruction or who is attending an elementary or
7secondary school situated in Iowa meeting certain criteria.
8The bill specifies that amounts paid from an account in the
9education savings account fund under Code section 257.11B, as
10enacted by 2023 Iowa Acts, House File 68, shall not be eligible
11for the credit.
12Division I takes effect upon enactment and applies
13retroactively to tax years beginning on or after January 1,
142023.
15DIVISION II — SCHOOL TUITION ORGANIZATION GRANTS.
16 Code sections 422.11S and 422.33 provide a school tuition
17organization tax credit against the individual income tax
18and corporate income tax, respectively, for contributions
19made by the taxpayer during the tax year to a school tuition
20organization. The bill adds a requirement to the criteria for
21a school tuition organization by specifying that for eligible
22students participating in the education savings account program
23under Code section 257.11B, the organization only provides
24tuition grants in amounts not to exceed the tuition amount
25for which the parent or guardian is responsible for payment
26following application of amounts paid using moneys from the
27student’s account in the education savings account fund. This
28provision applies to tuition grants made for school years
29beginning on or after July 1, 2023.
30The bill requires school tuition organizations to allocate
3190 percent of annual revenues as tuition grants within three
32years from January 1 of the calendar year during which the
33revenues were received. This provision applies retroactively
34to contributions to a school tuition organization made on or
35after January 1, 2022.
-6- 1The bill also reduces the total annual amount of available
2school tuition organization tax credits for the calendar year
3beginning January 1, 2024, from $20 million to $17 million, and
4to $14 million for calendar years beginning on or after January
51, 2025.
6DIVISION III — EDUCATION SAVINGS ACCOUNTS — ADMINISTRATION
7OF FUNDS. Code section 257.11B, as enacted by 2023 Iowa Acts,
8House File 68, section 7, specifies that moneys remaining in a
9pupil’s individual account upon conclusion of the fiscal year
10shall remain in the pupil’s individual account for the payment
11of qualified educational expenses in future fiscal years during
12which the pupil participates in the program until the pupil
13becomes ineligible under the program or until the remaining
14amounts are transferred to the state general fund as required
15in that Code section. The bill provides that such remaining
16moneys are available for future consecutive fiscal years during
17which the pupil participates in the program. The bill further
18provides that if moneys remain in a pupil’s individual account
19upon conclusion of the fiscal year and the pupil does not
20participate in the program during the immediately succeeding
21fiscal year, the department of education or third-party entity
22shall close the pupil’s account in the fund, and transfer any
23remaining moneys in the account for deposit in the general fund
24of the state.
25The bill also amends the education savings account program
26under Code section 257.11B by providing that if, prior to the
27end of the required attendance period of the school year,
28a pupil who receives an education savings account payment
29withdraws from enrollment in the nonpublic school or is
30expelled, the nonpublic school shall notify the department
31of education or third-party entity in writing of the pupil’s
32withdrawal or expulsion. Under the bill, upon receipt of a
33notice of expulsion, the department of education or third-party
34entity shall cease disbursements of remaining moneys in the
35pupil’s account, close the pupil’s account in the fund, and
-7-1transfer any remaining moneys in the account for deposit in
2the general fund of the state. Additionally, upon receipt of
3a notice of withdrawal and a determination that the pupil did
4not enroll in a different nonpublic school in this state for
5the remainder of the school year, the department of education
6or third-party entity shall cease disbursements of remaining
7moneys in the pupil’s account in the fund, close the pupil’s
8account, and transfer any moneys remaining in the pupil’s
9account for deposit in the general fund of the state.
10Division III takes effect upon enactment and applies
11retroactively to January 24, 2023.
12DIVISION IV — NONPUBLIC SCHOOL PUPIL TEXTBOOK SERVICES.
13 Code section 301.1 authorizes each school board to adopt
14textbooks for the district, and to contract for and buy such
15books and any and all other necessary school supplies at
16contract prices, and to sell them to the pupils of their
17respective districts at cost, loan such textbooks to such
18pupils free, or rent them to pupils. In addition, Code section
19301.1, subsections 2 and 3, provides that textbooks adopted
20and purchased by a school district shall, to the extent funds
21are appropriated by the general assembly, be made available to
22pupils attending accredited nonpublic schools upon request of
23the pupil or the pupil’s parent under comparable terms as made
24available to pupils attending public schools. The bill strikes
25those subsections of Code section 301.1 relating to a school
26district making such textbooks available to pupils attending
27nonpublic schools.
28Division IV takes effect July 1, 2025.
29DIVISION V — EDUCATION SAVINGS ACCOUNTS — CORRECTIONS.
30 Division V corrects errors and omissions in Code section
31257.11B, as enacted by 2023 Iowa Acts, House File 68, section
327.
33Division V takes effect upon enactment and applies
34retroactively to January 24, 2023.
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