S.F. 2124 Section 1. Section 256.7, Code Supplement 2009, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 30. Adopt rules relating to applications 3 for a school tuition credit pursuant to section 257.11B, 4 including application processing timelines, required 5 information for submission by a parent or guardian, and 6 penalties for noncompliance. 7 Sec. 2. Section 257.6, subsection 1, paragraph a, Code 8 Supplement 2009, is amended by adding the following new 9 subparagraph: 10 NEW SUBPARAGRAPH . (8) Resident pupils receiving a school 11 tuition credit pursuant to section 257.11B. 12 Sec. 3. NEW SECTION . 257.11B SCHOOL TUITION CREDITS. 13 1. Pupils attending an accredited nonpublic school shall be 14 eligible to receive a school tuition credit for attendance in 15 the following grades according to the following schedule: 16 a. For the school budget year beginning July 1, 2011, pupils 17 in kindergarten. 18 b. For the school budget year beginning July 1, 2012, pupils 19 in kindergarten and grade one. 20 c. For the school budget year beginning July 1, 2013, pupils 21 in kindergarten and grades one and two. 22 d. For the school budget year beginning July 1, 2014, pupils 23 in kindergarten and grades one through three. 24 e. For the school budget year beginning July 1, 2015, pupils 25 in kindergarten and grades one through four. 26 f. For the school budget year beginning July 1, 2016, pupils 27 in kindergarten and grades one through five. 28 g. For the school budget year beginning July 1, 2017, pupils 29 in kindergarten and grades one through six. 30 h. For the school budget year beginning July 1, 2018, pupils 31 in kindergarten and grades one through seven. 32 i. For the school budget year beginning July 1, 2019, pupils 33 in kindergarten and grades one through eight. 34 j. For the school budget year beginning July 1, 2020, pupils 35 -1- LSB 5324XS (4) 83 ak/sc 1/ 6

S.F. 2124 in kindergarten and grades one through nine. 1 k. For the school budget year beginning July 1, 2021, pupils 2 in kindergarten and grades one through ten. 3 l. For the school budget year beginning July 1, 2022, pupils 4 in kindergarten and grades one through eleven. 5 m. For the school budget year beginning July 1, 2023, and 6 succeeding budget years, pupils in kindergarten and grades one 7 through twelve. 8 2. a. By January of the year preceding the school year 9 for which the school tuition credit is requested, the parent 10 or guardian of the pupil requesting to receive a school 11 tuition credit shall submit an application to the department 12 of education, on forms to be developed by the department, 13 indicating that the parent or guardian intends to enroll the 14 pupil in an accredited nonpublic school. 15 b. By March 1, the department of education shall notify the 16 department of management of the number of pupils designated to 17 receive school tuition credits. 18 3. a. (1) The department of management shall assign each 19 designated pupil a school tuition credit in an amount equal to 20 thirty-five percent of the regular program foundation base per 21 pupil, as defined in section 257.1, subsection 2, paragraph “b” . 22 (2) The department of education, in consultation with the 23 department of management, shall reduce the September payment 24 to a local public school district otherwise payable pursuant 25 to section 257.16 for the following school budget year by 26 sixty-five percent of the amount determined in subparagraph 27 (1) per designated pupil. The funds not dispersed to school 28 districts due to the school tuition credit reduction shall 29 be transferred to the general fund by the department of 30 management. 31 (3) A public school district shall transfer twenty-five 32 percent of the amount determined in subparagraph (1) per 33 designated pupil directly to the applicable accredited 34 nonpublic school and retain the remaining ten percent as the 35 -2- LSB 5324XS (4) 83 ak/sc 2/ 6

S.F. 2124 pupil’s district of residence. 1 b. (1) Commencing in the school budget year beginning 2 July 1, 2023, and succeeding budget years, if the average 3 enrollment at an accredited nonpublic school equals seventeen 4 percent of the combined enrollment of the local public school 5 district and the accredited nonpublic school, the department of 6 management shall assign each designated pupil a school tuition 7 credit in an amount equal to forty-five percent of the regular 8 program foundation base per pupil, as defined in section 257.1, 9 subsection 2, paragraph “b” . 10 (2) The department of education, in consultation with the 11 department of management, shall reduce the September payment 12 to a local public school district otherwise payable pursuant 13 to section 257.16 for the following school budget year by 14 fifty-five percent of the amount determined in subparagraph 15 (1) per designated pupil. The funds not dispersed to school 16 districts due to the school tuition credit reduction shall 17 be transferred to the general fund by the department of 18 management. 19 (3) A public school district shall transfer thirty percent 20 of the amount determined in subparagraph (1) per designated 21 pupil directly to the applicable accredited nonpublic school 22 and retain the remaining fifteen percent as the pupil’s 23 district of residence. 24 c. The school tuition credit may also include any moneys 25 received for the pupil as a result of the non-English-speaking 26 weighting pursuant to section 280.4, subsection 3, for the 27 previous school year multiplied by the state cost per pupil for 28 the previous school year, and if the pupil is also an eligible 29 pupil under section 261E.6, the tuition reimbursement amount 30 as provided in section 261E.7. 31 d. Amounts payable as a school tuition credit may be paid 32 in a lump sum or in installments to the accredited nonpublic 33 school as determined by the department of education. 34 4. A pupil enrolled in an accredited nonpublic school who 35 -3- LSB 5324XS (4) 83 ak/sc 3/ 6

S.F. 2124 is receiving a school tuition credit shall be considered, for 1 state school foundation aid purposes, to be attending school 2 in the pupil’s district of residence. A parent or guardian 3 may apply on an annual basis for a school tuition credit for 4 each year that the pupil is enrolled in an accredited nonpublic 5 school. 6 5. In the event that a pupil requires special education 7 pursuant to chapter 256B, a school tuition credit may be 8 utilized only in the event that the pupil is enrolled in an 9 accredited nonpublic school that maintains a special education 10 instructional program that is equipped to meet the pupil’s 11 educational needs. 12 Sec. 4. APPLICABILITY. This Act applies to school budget 13 years beginning on or after July 1, 2011. 14 EXPLANATION 15 This bill provides a school tuition credit for pupils 16 attending accredited nonpublic schools. 17 Pupils starting kindergarten in the school budget year 18 commencing July 1, 2011, may receive a school tuition credit 19 for attending an accredited nonpublic school. Each school 20 budget year thereafter, another grade is made eligible for 21 the school tuition credit, so that in the school budget year 22 commencing July 1, 2023, kindergarten through grades 12 are 23 included. 24 The bill requires that a parent or guardian submit an 25 application to the department of education (DE) by January 26 of the preceding school year indicating that the parent 27 or guardian intends to enroll the pupil in an accredited 28 nonpublic school. By March 1, DE shall notify the department 29 of management (DOM) of the number of pupils to receive school 30 tuition credits. 31 DOM shall assign each designated pupil a credit equal to 35 32 percent of the regular program foundation base per pupil. DE 33 in consultation with DOM shall reduce the September payment to 34 a local school district for the following school budget year by 35 -4- LSB 5324XS (4) 83 ak/sc 4/ 6

S.F. 2124 65 percent of that amount per designated pupil. The funds not 1 dispersed to school districts due to the school tuition credit 2 shall be transferred to the general fund by DOM. A local 3 school district of residence shall then transfer 25 percent 4 of the credit per designated pupil directly to the applicable 5 accredited nonpublic school district and retain the remaining 6 10 percent as the pupil’s district of residence. 7 Beginning in the school budget year commencing July 1, 8 2023, and for succeeding budget years, if an accredited 9 nonpublic school’s average enrollment equals 17 percent of 10 the combined enrollment of the local public school district 11 and the accredited nonpublic school, then DOM shall assign 12 each designated pupil a credit equal to 45 percent of the 13 regular program foundation base per pupil. DE in consultation 14 with DOM shall reduce the September payment to a local school 15 district for the following school budget year by 55 percent of 16 that amount per designated pupil. The local school district 17 of residence shall transfer 30 percent of the credit per 18 designated pupil directly to the accredited nonpublic school 19 and retain 15 percent as the pupil’s district of residence. 20 The credit may include additional moneys received for 21 the pupil for non-English-speaking programs or for tuition 22 reimbursement under the postsecondary enrollment options 23 program. 24 DE shall determine whether the credit amounts are to be paid 25 in a lump sum or in installments to the accredited nonpublic 26 schools. 27 A student attending an accredited nonpublic school shall 28 be counted as attending school in the pupil’s district of 29 residence for state school foundation purposes. A parent or 30 guardian may reapply for the credit each year that the credit 31 is available and that the pupil is enrolled in an accredited 32 nonpublic school. 33 The bill provides that if a pupil requires special education 34 pursuant to Code chapter 256B, a school tuition credit may 35 -5- LSB 5324XS (4) 83 ak/sc 5/ 6

S.F. 2124 be used only in the event that the pupil is enrolled in an 1 accredited nonpublic school which maintains a special education 2 instructional program that is appropriate to meet the pupil’s 3 educational needs. 4 The state board of education is directed to adopt rules 5 relating to the applications for the school tuition credit. 6 Code section 257.6 is amended to reflect that pupils receiving 7 a credit are counted as part of a local public school 8 district’s actual enrollment. 9 The bill applies to school budget years beginning on or after 10 July 1, 2011. 11 -6- LSB 5324XS (4) 83 ak/sc 6/ 6