House File 215 H-1018 Amend House File 215 as follows: 1 1. Page 48, after line 20 by inserting: 2 < DIVISION ___ 3 EDUCATION SAVINGS GRANT PROGRAM 4 Sec. ___. Section 256.7, Code 2013, is amended by 5 adding the following new subsection: 6 NEW SUBSECTION . 34. Adopt rules relating to 7 applications for an education savings grant pursuant 8 to section 257.11B, including application processing 9 timelines and information required to be submitted by a 10 parent or guardian. 11 Sec. ___. NEW SECTION . 257.11B Education savings 12 grant program. 13 1. Pupils eligible to enroll in grades kindergarten 14 through twelve and attending an accredited nonpublic 15 school or receiving competent private instruction 16 under chapter 299A shall be eligible to receive an 17 education savings grant in the manner provided in this 18 section for school years beginning on or after July 1, 19 2014. Education savings grants shall be available for 20 disbursement to parents and guardians for the payment 21 of qualified education expenses as provided in this 22 section. 23 2. a. (1) By January 31 preceding the school year 24 for which the education savings grant is requested, the 25 parent or guardian of the pupil requesting to receive 26 an education savings grant shall submit an application 27 to the department of education, on application forms 28 developed by the department, indicating that the 29 parent or guardian intends to enroll the pupil in 30 an accredited nonpublic school or provide competent 31 private instruction for the pupil under chapter 299A. 32 (2) In addition to such information deemed 33 appropriate by the department of education, the 34 application shall require certification from the 35 accredited nonpublic school of the pupil’s enrollment 36 for the following school year or a statement indicating 37 the parent or guardian’s intent to provide or arrange 38 for competent private instruction for the pupil for the 39 following school year. 40 b. By March 1 preceding the school year for 41 which the education savings grant is requested, the 42 department of education shall notify the department 43 of management of the number of pupils in each school 44 district designated for the following school year 45 to receive an education savings grant and the amount 46 of the education savings grant for each pupil. The 47 department of education shall also notify the parent 48 or guardian of such pupils who are approved to receive 49 an education savings grant. 50 -1- HF215.308 (1) 85 md/sc 1/ 5 #1.

c. Education savings grants shall only be approved 1 for one school year and applications must be submitted 2 under paragraph “a” for education savings grants in 3 subsequent school years. 4 3. a. The department of management shall assign 5 each pupil an education savings grant in an amount 6 equal to the statewide average state foundation aid per 7 pupil in the same school year. 8 b. The department of management shall on July 9 1 following the determination of the amount of the 10 education savings grant for each approved pupil 11 transfer such amounts to the pupil’s account in 12 the education savings grant fund established under 13 subsection 4. Such amount shall be available for 14 disbursement to the pupil’s parent or guardian for the 15 payment of qualified educational expenses incurred by 16 such persons for the pupil during that school year. 17 4. An education savings grant fund is created in 18 the state treasury under the control of the department 19 of management consisting of moneys appropriated to 20 the department for the purpose of providing education 21 savings grants under this section. For the fiscal 22 year commencing July 1, 2014, and each succeeding 23 fiscal year, there is appropriated from the general 24 fund of the state to the department of management to 25 be credited to the fund the amount necessary to pay 26 all education savings grants approved for that fiscal 27 year. The director of the department of management has 28 all powers necessary to carry out and effectuate the 29 purposes, objectives, and provisions of this section 30 pertaining to the fund, including the power to do all 31 of the following: 32 a. Make and enter into contracts necessary for the 33 administration of the fund. 34 b. Procure insurance against any loss in connection 35 with the assets of the fund. 36 c. Make disbursements from a pupil’s account within 37 the fund to the pupil’s parents or guardians for the 38 payment or reimbursement of qualified educational 39 expenses. 40 d. Conduct audits or other review necessary to 41 properly administer the program. 42 e. Adopt rules pursuant to chapter 17A for the 43 administration of the fund and accounts within the 44 fund. 45 5. a. For each pupil approved for an education 46 savings grant, the department shall establish an 47 account for that pupil in the education savings grant 48 fund. The amount of the pupil’s education savings 49 grant determined under subsection 3 shall be deposited 50 -2- HF215.308 (1) 85 md/sc 2/ 5

into the pupil’s account on July 1 and such amount 1 shall be immediately available for disbursement to 2 parents and guardians upon filing and approval of 3 claims from the pupil’s account for qualified education 4 expenses incurred by the parent or guardian for the 5 pupil during that fiscal year. 6 b. A parent or guardian of a pupil may on forms 7 prescribed by the department of management submit 8 claims for disbursements of moneys within the account. 9 The department may by rule designate the appropriate 10 supporting documentation necessary for the disbursement 11 of moneys in an account including but not limited 12 to invoices of amounts due and receipts of amounts 13 paid for qualified education expenses. An accredited 14 nonpublic school or other entity that accepts payment 15 from a parent or guardian using funds from a pupil’s 16 account in the education savings grant fund shall not 17 refund, rebate, or share any portion of such payment 18 with the parent, guardian, or pupil. 19 c. Moneys remaining in a pupil’s account 20 upon conclusion of the fiscal year and following 21 disbursement of all claims submitted by the parent or 22 guardian before conclusion of the fiscal year shall 23 remain in the pupil’s account within the education 24 savings grant fund for disbursement for qualified 25 educational expenses in future fiscal years or for 26 disbursement under subsection 8. 27 6. For purposes of this section, “qualified 28 educational expense” includes tuition and fees at an 29 accredited nonpublic school, textbooks, payment to a 30 licensed or accredited tutor, curriculum materials, 31 tuition or fees for nonpublic online education 32 programs, education materials and services for pupils 33 with disabilities, standardized test fees, fees 34 required by the department, and other expenses incurred 35 by the parent or guardian that are directly related to 36 the education of the pupil at an accredited nonpublic 37 school, including a nonpublic school accredited by 38 AdvancED or an organization with reciprocity with 39 AdvancED, the association of christian schools 40 international, christian schools international, 41 the national lutheran school accreditation, or the 42 independent schools association of the central states, 43 or directly related to providing competent private 44 instruction for the pupil under chapter 299A. The cost 45 of one computer or other portable computing device 46 shall be allowed as a qualified educational expense for 47 a pupil if such a purchase has not been claimed for 48 that pupil in either of the two immediately preceding 49 fiscal years. “Qualified educational expenses” do not 50 -3- HF215.308 (1) 85 md/sc 3/ 5

include transportation costs for the pupil, the cost of 1 food or refreshments consumed by the pupil, or the cost 2 of disposable materials including but not limited to 3 paper, notebooks, pencils, pens, and art supplies. 4 7. A person who makes a false claim for the purpose 5 of obtaining an education savings grant provided for 6 in this section or who knowingly receives the grant 7 or receives a disbursement from an account within the 8 education savings grant fund without being legally 9 entitled to it is guilty of a fraudulent practice. 10 The false claim for an education savings grant or a 11 disbursement from an account shall be disallowed and 12 if amounts from the grant have been disbursed from 13 the applicable account in the education savings grant 14 fund, the department of management shall initiate 15 legal proceedings to recover such amounts. A parent 16 or guardian who violates this subsection is prohibited 17 from participating in the education savings grant 18 program in the future. 19 8. For each pupil with a positive balance in the 20 pupil’s account in the education savings grant fund 21 upon graduation from high school, the department 22 of management shall maintain such account in the 23 fund until the pupil is twenty-five years of age. 24 Following graduation from high school until the pupil 25 is twenty-five years of age, moneys in the pupil’s 26 account may be used for higher education costs, as 27 defined in section 12D.1, subsection 2. Disbursements 28 from a pupil’s account for higher education costs shall 29 be claimed by and disbursed to the pupil. Claims and 30 disbursements for higher education costs under this 31 subsection shall be made in the same manner as claims 32 and disbursements for qualified educational expenses 33 under subsection 5. Moneys in a pupil’s account 34 when the pupil turns twenty-five years of age shall 35 be transferred by the department for deposit in the 36 general fund of the state. 37 9. This section shall not be construed to authorize 38 this state or any political subdivision of this 39 state to exercise authority over any accredited 40 nonpublic school or pupil receiving competent private 41 instruction under chapter 299A or construed to require 42 an accredited nonpublic school to modify its admissions 43 or educational program in order to receive payment from 44 a parent or guardian using funds from a pupil’s account 45 in the education savings grant fund. An accredited 46 nonpublic school or other entity that accepts payment 47 from a parent or guardian using funds from a pupil’s 48 account in the education savings grant fund is not 49 an agent of this state or other political subdivision 50 -4- HF215.308 (1) 85 md/sc 4/ 5