House File 868 H-1422 Amend House File 868 as follows: 1 1. Page 12, after line 11 by inserting: 2 < ___. STUDENT FIRST SCHOLARSHIPS 3 For deposit in the student first scholarship fund created 4 pursuant to section 257.11B, if enacted by this Act: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 > 6 2. Page 26, after line 35 by inserting: 7 < DIVISION ___ 8 STUDENT FIRST SCHOLARSHIP PROGRAM 9 Sec. ___. Section 256.9, Code 2021, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 63. Adopt rules relating to the 12 administration of and applications for the student first 13 scholarship program pursuant to section 257.11B, including but 14 not limited to application processing timelines and information 15 required to be submitted by a parent or guardian. 16 Sec. ___. NEW SECTION . 257.11B Student first scholarship 17 program. 18 1. Subject to an appropriation of funds by the general 19 assembly for the purpose, a student first scholarship program 20 is created that shall be administered by the department of 21 education. 22 a. For the school budget year beginning July 1, 2022, and 23 each succeeding school budget year, the following resident 24 pupils who are attending a nonpublic school, as defined in 25 section 285.16, shall be eligible to receive a student first 26 scholarship in the manner provided in this section: 27 (1) A pupil eligible to enroll in kindergarten who, if 28 enrolled in the pupil’s district of residence, would attend 29 a public school identified for comprehensive support and 30 improvement under the federal Every Student Succeeds Act, Pub. 31 L. No. 114-95, or an equivalent objective federal standard. 32 (2) A pupil eligible to enroll in grade one through grade 33 twelve if the pupil has attended a public school identified for 34 comprehensive support and improvement under the federal Every 35 -1- HF 868.2109 (2) 89 kh/tm 1/ 9 #1. #2.

Student Succeeds Act, Pub. L. No. 114-95, or an equivalent 1 objective federal standard, for the equivalent of the two 2 immediately preceding semesters for which the student first 3 scholarship is requested and if the pupil is not otherwise 4 ineligible under this section. 5 (3) A pupil who received a student first scholarship for 6 the immediately preceding school budget year, who is eligible 7 to enroll in grade one through grade twelve, and who is not 8 otherwise ineligible under this section. 9 b. Student first scholarships shall be made available to 10 parents and guardians in the manner authorized under subsection 11 4, paragraph “c” , for the payment of qualified educational 12 expenses as provided in this section. 13 c. For purposes of this subsection, “resident” means the 14 same as defined in section 282.1, subsection 2. 15 2. a. (1) By January 1 preceding the school year for 16 which the student first scholarship is requested, the parent or 17 guardian of the pupil requesting a student first scholarship 18 shall submit an application to the department of education, on 19 application forms developed by the department of education, 20 indicating that the parent or guardian intends to enroll the 21 pupil in a nonpublic school for the entirety of the school 22 year. 23 (2) In addition to such information deemed appropriate by 24 the department of education, the application shall require 25 certification from the nonpublic school of the pupil’s 26 enrollment for the following school year. 27 b. By February 1 preceding the school year for which the 28 student first scholarship is requested, the department of 29 education shall determine the number of pupils in each school 30 district approved to receive a scholarship for the following 31 school year and shall notify the parent or guardian of each 32 pupil approved for the following school year to receive a 33 scholarship and the amount of the scholarship for the pupil. 34 c. Student first scholarships shall only be approved for 35 -2- HF 868.2109 (2) 89 kh/tm 2/ 9

one school year and applications must be submitted annually for 1 student first scholarships in subsequent school years. 2 3. The department of education shall assign each pupil a 3 student first scholarship in an amount equal to the sum of all 4 the following for the same school budget year: 5 a. The product of the pupil’s weighted enrollment that 6 would otherwise be assigned to the pupil under this chapter if 7 the pupil was enrolled in the pupil’s district of residence 8 multiplied by the difference between eighty-seven and 9 five-tenths percent of the regular program state cost per pupil 10 and the statewide average foundation property tax per pupil. 11 b. The total teacher salary supplement district cost per 12 pupil for the pupil’s district of residence. 13 c. The total professional development supplement district 14 cost per pupil for the pupil’s district of residence. 15 d. The total early intervention supplement district cost per 16 pupil for the pupil’s district of residence. 17 e. The total area education agency teacher salary supplement 18 district cost per pupil for the pupil’s district of residence. 19 f. The total area education agency professional development 20 supplement district cost per pupil for the pupil’s district of 21 residence. 22 g. The total teacher leadership supplement district cost per 23 pupil for the pupil’s district of residence. 24 4. A student first scholarship fund is created in the 25 state treasury under the control of the department of 26 education consisting of moneys appropriated to the department 27 of education for the purpose of providing student first 28 scholarships under this section. Notwithstanding section 29 8.33, moneys appropriated to the department of education by 30 the general assembly for purposes of this section that remain 31 unencumbered or unobligated at the end of the fiscal year shall 32 not revert to the general fund but shall remain available for 33 expenditure for the purposes designated in subsequent fiscal 34 years. The director of the department of education has all 35 -3- HF 868.2109 (2) 89 kh/tm 3/ 9

powers necessary to carry out and effectuate the purposes, 1 objectives, and provisions of this section pertaining to the 2 fund, including the power to do all of the following: 3 a. Make and enter into contracts necessary for the 4 administration of the fund. 5 b. Procure insurance against any loss in connection with the 6 assets of the fund or require a surety bond. 7 c. Contract with a private financial management firm to 8 manage the fund, in collaboration with the treasurer of state, 9 including providing for the disbursement of student first 10 scholarships in the form of an electronic debit card or checks 11 that are payable directly from the pupil’s account within the 12 fund. 13 d. Conduct audits or other reviews necessary to properly 14 administer the program. 15 e. Adopt rules for the administration of the fund and 16 accounts within the fund. 17 f. Prorate the amount of scholarship awards if the amount 18 appropriated is insufficient to pay the full amount of 19 scholarship awards in accordance with subsection 1. 20 5. a. For each pupil approved for a student first 21 scholarship, the department of education shall establish an 22 account for that pupil in the student first scholarship fund. 23 The amount of the pupil’s student first scholarship shall be 24 deposited into the pupil’s account on July 1, and such amount 25 shall be immediately available for the payment of qualified 26 educational expenses incurred by the parent or guardian for 27 the pupil during that fiscal year using the payment method 28 authorized under subsection 4, paragraph “c” . 29 b. A nonpublic school that accepts payment from a parent 30 or guardian using funds from a pupil’s account in the student 31 first scholarship fund shall not refund, rebate, or share any 32 portion of such payment with the parent, guardian, or pupil. 33 c. Moneys remaining in a pupil’s account upon conclusion 34 of the fiscal year shall remain in the pupil’s account in the 35 -4- HF 868.2109 (2) 89 kh/tm 4/ 9

student first scholarship fund for the payment of qualified 1 educational expenses in future fiscal years during which the 2 pupil participates in the program until the pupil becomes 3 ineligible under the program or until the remaining amounts are 4 transferred to the state general fund under subsection 8. 5 6. a. For purposes of this section, “qualified educational 6 expenses” includes tuition and fees at a nonpublic school, 7 textbooks, fees or payments for educational therapies, 8 including tutoring or cognitive skills training, curriculum 9 fees, software, and materials for a course of study for a 10 specific subject matter or grade level, tuition or fees for 11 nonpublic online education programs, tuition for vocational and 12 life skills education approved by the department of education, 13 education materials and services for pupils with disabilities, 14 including the cost of paraprofessionals and assistants who are 15 trained in accordance with state law, standardized test fees, 16 advanced placement examinations or examinations related to 17 postsecondary education admission or credentialing, qualified 18 education expenses, as defined in section 12D.1, excluding 19 room and board expenses, and other expenses incurred by the 20 parent or guardian that are directly related to the education 21 of the pupil at a nonpublic school, including a nonpublic 22 school accredited by an independent accrediting agency approved 23 by the department of education. The cost of one computer or 24 other portable computing device shall be allowed as a qualified 25 educational expense for a pupil if the computer or portable 26 computing device is used primarily for the education of the 27 pupil and if such a purchase has not been made using funds from 28 that pupil’s account in any of the three immediately preceding 29 fiscal years. 30 b. “Qualified educational expenses” does not include 31 transportation costs for the pupil, the cost of food or 32 refreshments consumed by the pupil, the cost of clothing for 33 the pupil, or the cost of disposable materials, including 34 but not limited to paper, notebooks, pencils, pens, and art 35 -5- HF 868.2109 (2) 89 kh/tm 5/ 9

supplies. 1 7. a. A person who makes a false claim for the purpose 2 of obtaining a student first scholarship provided for in this 3 section or who knowingly receives the scholarship or makes a 4 payment from an account within the student first scholarship 5 fund without being legally entitled to do so is guilty of a 6 fraudulent practice under chapter 714. The false claim for a 7 student first scholarship or a payment from an account shall 8 be disallowed. The department of education shall also close 9 the pupil’s account in the student first scholarship fund and 10 transfer any remaining moneys in the account for deposit in the 11 general fund of the state. If the improperly obtained amounts 12 from the scholarship have been disbursed from the applicable 13 account in the student first scholarship fund, the department 14 of education shall recover such amounts from the parent or 15 guardian, including by initiating legal proceedings to recover 16 such amounts, if necessary. A parent or guardian who commits 17 a fraudulent practice under this section is prohibited from 18 participating in the student first scholarship program in the 19 future. 20 b. If, prior to the end of the required attendance 21 period of the school year, a pupil who receives a student 22 first scholarship withdraws from enrollment in the nonpublic 23 school or is expelled, the nonpublic school shall notify the 24 department of education in writing of the pupil’s withdrawal 25 or expulsion, and the pupil’s parent or guardian shall notify 26 the department of education of the pupil’s withdrawal or 27 expulsion from the nonpublic school. A pupil’s expulsion 28 from the nonpublic school prior to the end of the required 29 attendance period for the school year shall invalidate the 30 pupil’s eligibility for the student first scholarship for the 31 school budget year. A pupil’s withdrawal from a nonpublic 32 school prior to the end of the required attendance period of 33 the school year shall invalidate the pupil’s eligibility for 34 the student first scholarship for the school budget year unless 35 -6- HF 868.2109 (2) 89 kh/tm 6/ 9

the withdrawal is the result of a change in residence of the 1 pupil and the pupil, following written notice by the parent 2 or guardian and certification by the new nonpublic school to 3 the department of education, enrolls in a different nonpublic 4 school in this state for the remainder of the school year. 5 c. (1) Upon receipt of a notice of expulsion under 6 paragraph “b” , the department of education shall close the 7 pupil’s account in the student first scholarship fund and 8 transfer any remaining moneys in the account for deposit in 9 the general fund of the state. In addition, if amounts from 10 the scholarship for the school budget year during which the 11 pupil is expelled have been disbursed from the expelled pupil’s 12 account in the student first scholarship fund, the department 13 of education shall recover such amounts from the parent or 14 guardian, including by initiating legal proceedings to recover 15 such amounts, if necessary. 16 (2) Upon receipt of a notice of withdrawal under paragraph 17 “b” and a determination that the pupil’s withdrawal was 18 not the result of a change in residence, the department of 19 education shall cease disbursements of remaining moneys in 20 the pupil’s account in the student first scholarship fund, 21 close the pupil’s account, and transfer any moneys remaining 22 in the pupil’s account for deposit in the general fund of 23 the state. In addition, if amounts from the scholarship for 24 the school budget year during which the withdrawal occurs 25 have been disbursed from the pupil’s account in the student 26 first scholarship fund, the department of education shall 27 recover such amounts from the parent or guardian to the extent 28 the amount disbursed exceeds the amount of the scholarship 29 proportionate to the remaining portion of the school year 30 following the withdrawal, including by initiating legal 31 proceedings to recover such amounts, if necessary. 32 (3) Upon receipt of a notice of withdrawal under paragraph 33 “b” and a determination that the withdrawal was the result of 34 a change in residence but that the pupil did not enroll in 35 -7- HF 868.2109 (2) 89 kh/tm 7/ 9

a different nonpublic school in this state for the remainder 1 of the school year, the department of education shall cease 2 disbursements of remaining moneys in the pupil’s account in 3 the student first scholarship fund, close the pupil’s account, 4 and transfer any moneys remaining in the pupil’s account for 5 deposit in the general fund of the state. 6 (4) If a pupil’s eligibility is invalidated under the 7 provisions of paragraph “b” , the pupil shall be ineligible for a 8 student first scholarship for the following school budget year 9 under subsection 1, paragraph “a” , subparagraphs (2) and (3). 10 8. Moneys remaining in a pupil’s account when the pupil 11 graduates from high school or turns twenty-one years of age, 12 whichever occurs first, shall be transferred by the department 13 of education for deposit in the general fund of the state. 14 9. a. A parent may appeal to the state board of education 15 any administrative decision the department of education 16 makes pursuant to this section, including but not limited 17 to determinations of eligibility, allowable expenses, and 18 removal from the program. The department shall notify the 19 parent or guardian in writing of the appeal process at the same 20 time the department notifies the parent or guardian of the 21 administrative decision. The state board of education shall 22 establish the appeals process consistent with chapter 17A and 23 shall post such appeal process information on the state board 24 of education’s internet site. 25 b. The state board of education shall refer cases of 26 substantial misuse of student first scholarship funds to the 27 attorney general for the purpose of collection or for the 28 purpose of a criminal investigation if the state board of 29 education obtains evidence of fraudulent use of an account. 30 10. This section shall not be construed to authorize the 31 state or any political subdivision of the state to exercise 32 authority over any nonpublic school or construed to require 33 a nonpublic school to modify its academic standards for 34 admission or educational program in order to receive payment 35 -8- HF 868.2109 (2) 89 kh/tm 8/ 9

from a parent or guardian using funds from a pupil’s account 1 in the student first scholarship fund. A nonpublic school 2 that accepts payment from a parent or guardian using funds 3 from a pupil’s account in the student first scholarship fund 4 is not an agent of this state or of a political subdivision 5 of this state. Rules adopted by the department of education 6 to implement this section that impose an undue burden on a 7 nonpublic school are invalid. 8 Sec. ___. Section 422.7, Code 2021, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 51. Subtract, to the extent included, the 11 amount of a student first scholarship under section 257.11B 12 received by the taxpayer for payment of qualified educational 13 expenses. 14 Sec. ___. APPLICABILITY. The following applies to school 15 budget years and fiscal years beginning on or after July 1, 16 2022: 17 The section of this division of this Act enacting section 18 257.11B. 19 Sec. ___. APPLICABILITY. The following applies to tax years 20 beginning on or after January 1, 2022: 21 The section of this division of this Act enacting section 22 422.7, subsection 51. > 23 3. Title page, line 6, by striking < retroactive > 24 4. By renumbering as necessary. 25 ______________________________ SHIPLEY of Van Buren -9- HF 868.2109 (2) 89 kh/tm 9/ 9 #3. #4.