House File 438 H-1049 Amend House File 438 as follows: 1 1. Page 1, before line 1 by inserting: 2 < Section 1. Section 256.9, Code 2021, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 63. Adopt rules relating to the 5 administration of and applications for the student first 6 scholarship program pursuant to section 257.11B, including but 7 not limited to application processing timelines and information 8 required to be submitted by a parent or guardian. > 9 2. Page 1, line 10, by striking < one-half > and inserting 10 < two-tenths > 11 3. Page 1, line 24, by striking < one-half > and inserting 12 < two-tenths > 13 4. Page 2, after line 29 by inserting: 14 < Sec. ___. NEW SECTION . 257.11B Student first scholarship 15 program. 16 1. a. For the school budget year beginning July 1, 2022, 17 and each succeeding school budget year, the following resident 18 pupils who are attending a nonpublic school, as defined in 19 section 285.16, shall be eligible to receive a student first 20 scholarship in the manner provided in this section: 21 (1) A pupil eligible to enroll in kindergarten who, if 22 enrolled in the pupil’s district of residence, would attend 23 a public school identified for comprehensive support and 24 improvement under the federal Every Student Succeeds Act, Pub. 25 L. No. 114-95, or an equivalent objective federal standard. 26 (2) A pupil eligible to enroll in grade one through grade 27 twelve if the pupil has attended a public school identified for 28 comprehensive support and improvement under the federal Every 29 Student Succeeds Act, Pub. L. No. 114-95, or an equivalent 30 objective federal standard, for the equivalent of the two 31 immediately preceding semesters for which the student first 32 scholarship is requested and if the pupil is not otherwise 33 ineligible under this section. 34 (3) A pupil who received a student first scholarship for 35 -1- HF438.415 (1) 89 md/jh 1/ 9 #1. #2. #3. #4.

the immediately preceding school budget year, who is eligible 1 to enroll in grade one through grade twelve, and who is not 2 otherwise ineligible under this section. 3 b. Student first scholarships shall be made available to 4 parents and guardians in the manner authorized under subsection 5 4, paragraph “c” , for the payment of qualified educational 6 expenses as provided in this section. 7 c. For purposes of this subsection, “resident” means the 8 same as defined in section 282.1, subsection 2. 9 2. a. (1) By January 1 preceding the school year for 10 which the student first scholarship is requested, the parent or 11 guardian of the pupil requesting a student first scholarship 12 shall submit an application to the department of education, on 13 application forms developed by the department of education, 14 indicating that the parent or guardian intends to enroll the 15 pupil in a nonpublic school for the entirety of the school 16 year. 17 (2) In addition to such information deemed appropriate by 18 the department of education, the application shall require 19 certification from the nonpublic school of the pupil’s 20 enrollment for the following school year. 21 b. By February 1 preceding the school year for which the 22 student first scholarship is requested, the department of 23 education shall determine the number of pupils in each school 24 district approved to receive a scholarship for the following 25 school year and shall notify the parent or guardian of each 26 pupil approved for the following school year to receive a 27 scholarship and the amount of the scholarship for the pupil. 28 c. Student first scholarships shall only be approved for 29 one school year and applications must be submitted annually for 30 student first scholarships in subsequent school years. 31 3. The department of education shall assign each pupil a 32 student first scholarship in an amount equal to the sum of all 33 the following for the same school budget year: 34 a. The product of the pupil’s weighted enrollment that 35 -2- HF438.415 (1) 89 md/jh 2/ 9

would otherwise be assigned to the pupil under this chapter if 1 the pupil was enrolled in the pupil’s district of residence 2 multiplied by the difference between eighty-seven and 3 five-tenths percent of the regular program state cost per pupil 4 and the statewide average foundation property tax per pupil. 5 b. The total teacher salary supplement district cost per 6 pupil for the pupil’s district of residence. 7 c. The total professional development supplement district 8 cost per pupil for the pupil’s district of residence. 9 d. The total early intervention supplement district cost per 10 pupil for the pupil’s district of residence. 11 e. The total area education agency teacher salary supplement 12 district cost per pupil for the pupil’s district of residence. 13 f. The total area education agency professional development 14 supplement district cost per pupil for the pupil’s district of 15 residence. 16 g. The total teacher leadership supplement district cost per 17 pupil for the pupil’s district of residence. 18 4. A student first scholarship fund is created in the 19 state treasury under the control of the department of 20 education consisting of moneys appropriated to the department 21 of education for the purpose of providing student first 22 scholarships under this section. For the fiscal year 23 commencing July 1, 2022, and each succeeding fiscal year, there 24 is appropriated from the general fund of the state to the 25 department of education to be credited to the fund the amount 26 necessary to pay all student first scholarships approved for 27 that fiscal year. The director of the department of education 28 has all powers necessary to carry out and effectuate the 29 purposes, objectives, and provisions of this section pertaining 30 to the fund, including the power to do all of the following: 31 a. Make and enter into contracts necessary for the 32 administration of the fund. 33 b. Procure insurance against any loss in connection with the 34 assets of the fund or require a surety bond. 35 -3- HF438.415 (1) 89 md/jh 3/ 9

c. Contract with a private financial management firm to 1 manage the fund, in collaboration with the treasurer of state, 2 including providing for the disbursement of student first 3 scholarships in the form of an electronic debit card or checks 4 that are payable directly from the pupil’s account within the 5 fund. 6 d. Conduct audits or other reviews necessary to properly 7 administer the program. 8 e. Adopt rules for the administration of the fund and 9 accounts within the fund. 10 5. a. For each pupil approved for a student first 11 scholarship, the department of education shall establish an 12 account for that pupil in the student first scholarship fund. 13 The amount of the pupil’s student first scholarship shall be 14 deposited into the pupil’s account on July 1, and such amount 15 shall be immediately available for the payment of qualified 16 educational expenses incurred by the parent or guardian for 17 the pupil during that fiscal year using the payment method 18 authorized under subsection 4, paragraph “c” . 19 b. A nonpublic school that accepts payment from a parent 20 or guardian using funds from a pupil’s account in the student 21 first scholarship fund shall not refund, rebate, or share any 22 portion of such payment with the parent, guardian, or pupil. 23 c. Moneys remaining in a pupil’s account upon conclusion 24 of the fiscal year shall remain in the pupil’s account in the 25 student first scholarship fund for the payment of qualified 26 educational expenses in future fiscal years during which the 27 pupil participates in the program until the pupil becomes 28 ineligible under the program or until the remaining amounts are 29 transferred to the state general fund under subsection 8. 30 6. a. For purposes of this section, “qualified educational 31 expenses” includes tuition and fees at a nonpublic school, 32 textbooks, fees or payments for educational therapies, 33 including tutoring or cognitive skills training, curriculum 34 fees, software, and materials for a course of study for a 35 -4- HF438.415 (1) 89 md/jh 4/ 9

specific subject matter or grade level, tuition or fees for 1 nonpublic online education programs, tuition for vocational and 2 life skills education approved by the department of education, 3 education materials and services for pupils with disabilities, 4 including the cost of paraprofessionals and assistants who are 5 trained in accordance with state law, standardized test fees, 6 advanced placement examinations or examinations related to 7 postsecondary education admission or credentialing, qualified 8 education expenses, as defined in section 12D.1, excluding 9 room and board expenses, and other expenses incurred by the 10 parent or guardian that are directly related to the education 11 of the pupil at a nonpublic school, including a nonpublic 12 school accredited by an independent accrediting agency approved 13 by the department of education. The cost of one computer or 14 other portable computing device shall be allowed as a qualified 15 educational expense for a pupil if the computer or portable 16 computing device is used primarily for the education of the 17 pupil and if such a purchase has not been made using funds from 18 that pupil’s account in any of the three immediately preceding 19 fiscal years. 20 b. “Qualified educational expenses” does not include 21 transportation costs for the pupil, the cost of food or 22 refreshments consumed by the pupil, the cost of clothing for 23 the pupil, or the cost of disposable materials, including 24 but not limited to paper, notebooks, pencils, pens, and art 25 supplies. 26 7. a. A person who makes a false claim for the purpose 27 of obtaining a student first scholarship provided for in this 28 section or who knowingly receives the scholarship or makes a 29 payment from an account within the student first scholarship 30 fund without being legally entitled to do so is guilty of a 31 fraudulent practice under chapter 714. The false claim for a 32 student first scholarship or a payment from an account shall 33 be disallowed. The department of education shall also close 34 the pupil’s account in the student first scholarship fund and 35 -5- HF438.415 (1) 89 md/jh 5/ 9

transfer any remaining moneys in the account for deposit in the 1 general fund of the state. If the improperly obtained amounts 2 from the scholarship have been disbursed from the applicable 3 account in the student first scholarship fund, the department 4 of education shall recover such amounts from the parent or 5 guardian, including by initiating legal proceedings to recover 6 such amounts, if necessary. A parent or guardian who commits 7 a fraudulent practice under this section is prohibited from 8 participating in the student first scholarship program in the 9 future. 10 b. If, prior to the end of the required attendance 11 period of the school year, a pupil who receives a student 12 first scholarship withdraws from enrollment in the nonpublic 13 school or is expelled, the nonpublic school shall notify the 14 department of education in writing of the pupil’s withdrawal 15 or expulsion, and the pupil’s parent or guardian shall notify 16 the department of education of the pupil’s withdrawal or 17 expulsion from the nonpublic school. A pupil’s expulsion 18 from the nonpublic school prior to the end of the required 19 attendance period for the school year shall invalidate the 20 pupil’s eligibility for the student first scholarship for the 21 school budget year. A pupil’s withdrawal from a nonpublic 22 school prior to the end of the required attendance period of 23 the school year shall invalidate the pupil’s eligibility for 24 the student first scholarship for the school budget year unless 25 the withdrawal is the result of a change in residence of the 26 pupil and the pupil, following written notice by the parent 27 or guardian and certification by the new nonpublic school to 28 the department of education, enrolls in a different nonpublic 29 school in this state for the remainder of the school year. 30 c. (1) Upon receipt of a notice of expulsion under 31 paragraph “b” , the department of education shall close the 32 pupil’s account in the student first scholarship fund and 33 transfer any remaining moneys in the account for deposit in 34 the general fund of the state. In addition, if amounts from 35 -6- HF438.415 (1) 89 md/jh 6/ 9

the scholarship for the school budget year during which the 1 pupil is expelled have been disbursed from the expelled pupil’s 2 account in the student first scholarship fund, the department 3 of education shall recover such amounts from the parent or 4 guardian, including by initiating legal proceedings to recover 5 such amounts, if necessary. 6 (2) Upon receipt of a notice of withdrawal under paragraph 7 “b” and a determination that the pupil’s withdrawal was 8 not the result of a change in residence, the department of 9 education shall cease disbursements of remaining moneys in 10 the pupil’s account in the student first scholarship fund, 11 close the pupil’s account, and transfer any moneys remaining 12 in the pupil’s account for deposit in the general fund of 13 the state. In addition, if amounts from the scholarship for 14 the school budget year during which the withdrawal occurs 15 have been disbursed from the pupil’s account in the student 16 first scholarship fund, the department of education shall 17 recover such amounts from the parent or guardian to the extent 18 the amount disbursed exceeds the amount of the scholarship 19 proportionate to the remaining portion of the school year 20 following the withdrawal, including by initiating legal 21 proceedings to recover such amounts, if necessary. 22 (3) Upon receipt of a notice of withdrawal under paragraph 23 “b” and a determination that the withdrawal was the result of 24 a change in residence but that the pupil did not enroll in 25 a different nonpublic school in this state for the remainder 26 of the school year, the department of education shall cease 27 disbursements of remaining moneys in the pupil’s account in 28 the student first scholarship fund, close the pupil’s account, 29 and transfer any moneys remaining in the pupil’s account for 30 deposit in the general fund of the state. 31 (4) If a pupil’s eligibility is invalidated under the 32 provisions of paragraph “b” , the pupil shall be ineligible for a 33 student first scholarship for the following school budget year 34 under subsection 1, paragraph “a” , subparagraphs (2) and (3). 35 -7- HF438.415 (1) 89 md/jh 7/ 9

8. Moneys remaining in a pupil’s account when the pupil 1 graduates from high school or turns twenty-one years of age, 2 whichever occurs first, shall be transferred by the department 3 of education for deposit in the general fund of the state. 4 9. a. A parent may appeal to the state board of education 5 any administrative decision the department of education 6 makes pursuant to this section, including but not limited 7 to determinations of eligibility, allowable expenses, and 8 removal from the program. The department shall notify the 9 parent or guardian in writing of the appeal process at the same 10 time the department notifies the parent or guardian of the 11 administrative decision. The state board of education shall 12 establish the appeals process consistent with chapter 17A and 13 shall post such appeal process information on the state board 14 of education’s internet site. 15 b. The state board of education shall refer cases of 16 substantial misuse of student first scholarship funds to the 17 attorney general for the purpose of collection or for the 18 purpose of a criminal investigation if the state board of 19 education obtains evidence of fraudulent use of an account. 20 10. This section shall not be construed to authorize the 21 state or any political subdivision of the state to exercise 22 authority over any nonpublic school or construed to require 23 a nonpublic school to modify its academic standards for 24 admission or educational program in order to receive payment 25 from a parent or guardian using funds from a pupil’s account 26 in the student first scholarship fund. A nonpublic school 27 that accepts payment from a parent or guardian using funds 28 from a pupil’s account in the student first scholarship fund 29 is not an agent of this state or of a political subdivision 30 of this state. Rules adopted by the department of education 31 to implement this section that impose an undue burden on a 32 nonpublic school are invalid. > 33 5. Page 5, after line 3 by inserting: 34 < Sec. ___. Section 422.7, Code 2021, is amended by adding 35 -8- HF438.415 (1) 89 md/jh 8/ 9 #5.

the following new subsection: 1 NEW SUBSECTION . 51. Subtract, to the extent included, the 2 amount of a student first scholarship under section 257.11B 3 received by the taxpayer for payment of qualified educational 4 expenses. 5 Sec. ___. APPLICABILITY. The following applies to school 6 budget years and fiscal years beginning on or after July 1, 7 2022: 8 The section of this Act enacting section 257.11B. 9 Sec. ___. APPLICABILITY. The following applies to tax years 10 beginning on or after January 1, 2022: 11 The section of this Act enacting section 422.7, subsection 12 51. > 13 6. Title page, line 5, after < pupil, > by inserting 14 < establishing a student first scholarship program, making 15 appropriations, > 16 7. Title page, line 7, before < provisions > by inserting < and 17 applicability > 18 8. By renumbering as necessary. 19 ______________________________ SHIPLEY of Van Buren -9- HF438.415 (1) 89 md/jh 9/ 9 #6. #7. #8.