S.F. 159 Section 1. Section 256.7, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 31. 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, 8 unnumbered paragraph 1, Code 2011, is amended to read as 9 follows: 10 Actual Except as provided in subparagraph (8), actual 11 enrollment is determined annually on October 1, or the first 12 Monday in October if October 1 falls on a Saturday or Sunday, 13 and includes all of the following: 14 Sec. 3. Section 257.6, subsection 1, paragraph a, Code 2011, 15 is amended by adding the following new subparagraph: 16 NEW SUBPARAGRAPH . (8) Resident pupils receiving a school 17 tuition credit pursuant to section 257.11B, as designated by 18 March 1. 19 Sec. 4. NEW SECTION . 257.11B School tuition credits. 20 1. Pupils attending an accredited nonpublic school shall be 21 eligible to receive a school tuition credit for attendance in 22 the following grades according to the following schedule: 23 a. For the school budget year beginning July 1, 2012, pupils 24 in kindergarten. 25 b. For the school budget year beginning July 1, 2013, pupils 26 in kindergarten and grade one. 27 c. For the school budget year beginning July 1, 2014, pupils 28 in kindergarten and grades one and two. 29 d. For the school budget year beginning July 1, 2015, pupils 30 in kindergarten and grades one through three. 31 e. For the school budget year beginning July 1, 2016, pupils 32 in kindergarten and grades one through four. 33 f. For the school budget year beginning July 1, 2017, pupils 34 in kindergarten and grades one through five. 35 -1- LSB 1464XS (2) 84 md/sc 1/ 6

S.F. 159 g. For the school budget year beginning July 1, 2018, pupils 1 in kindergarten and grades one through six. 2 h. For the school budget year beginning July 1, 2019, pupils 3 in kindergarten and grades one through seven. 4 i. For the school budget year beginning July 1, 2020, pupils 5 in kindergarten and grades one through eight. 6 j. For the school budget year beginning July 1, 2021, pupils 7 in kindergarten and grades one through nine. 8 k. For the school budget year beginning July 1, 2022, pupils 9 in kindergarten and grades one through ten. 10 l. For the school budget year beginning July 1, 2023, pupils 11 in kindergarten and grades one through eleven. 12 m. For the school budget year beginning July 1, 2024, and 13 succeeding budget years, pupils in kindergarten and grades one 14 through twelve. 15 2. a. By January of the school year preceding the school 16 year for which the school tuition credit is requested, the 17 parent or guardian of the pupil requesting to receive a school 18 tuition credit shall submit an application to the department 19 of education, on forms to be developed by the department, 20 indicating that the parent or guardian intends to enroll the 21 pupil in an accredited nonpublic school. 22 b. By March 1, the department of education shall notify the 23 department of management of the number of pupils designated to 24 receive school tuition credits. 25 3. a. (1) The department of management shall assign each 26 designated pupil a school tuition credit in an amount equal to 27 thirty-five percent of the regular program foundation base per 28 pupil, as defined in section 257.1, subsection 2, paragraph “b” . 29 (2) The department of education, in consultation with 30 the department of management, shall reduce the state aid 31 payments to a local public school district otherwise payable 32 pursuant to section 257.16 for the following school budget year 33 attributable to the designated pupils by sixty-five percent of 34 the regular program foundation base per pupil, as defined in 35 -2- LSB 1464XS (2) 84 md/sc 2/ 6

S.F. 159 section 257.1, subsection 2, paragraph “b” . The regular program 1 foundation funds not paid to school districts due to the school 2 tuition credit reduction shall remain in the general fund of 3 the state. 4 (3) A public school district shall transfer twenty-five 5 percent of the regular program foundation base per pupil, 6 as defined in section 257.1, subsection 2, paragraph “b” , 7 per designated pupil directly to the applicable accredited 8 nonpublic school and shall retain the remaining ten percent 9 of the regular program foundation base per pupil, as defined 10 in section 257.1, subsection 2, paragraph “b” , as the pupil’s 11 district of residence. 12 b. (1) Commencing in the school budget year beginning 13 July 1, 2024, and succeeding budget years, if the average 14 enrollment at an accredited nonpublic school equals seventeen 15 percent of the combined enrollment of the local public school 16 district and the accredited nonpublic school, the department of 17 management shall assign each designated pupil a school tuition 18 credit in an amount equal to forty-five percent of the regular 19 program foundation base per pupil, as defined in section 257.1, 20 subsection 2, paragraph “b” . 21 (2) The department of education, in consultation with 22 the department of management, shall reduce the state aid 23 payments to a local public school district otherwise payable 24 pursuant to section 257.16 for the following school budget year 25 attributable to the designated pupils by fifty-five percent of 26 the regular program foundation base per pupil, as defined in 27 section 257.1, subsection 2, paragraph “b” . The regular program 28 foundation funds not paid to school districts due to the school 29 tuition credit reduction shall remain in the general fund of 30 the state. 31 (3) A public school district shall transfer thirty percent 32 of the regular program foundation base per pupil, as defined 33 in section 257.1, subsection 2, paragraph “b” , per designated 34 pupil directly to the applicable accredited nonpublic school 35 -3- LSB 1464XS (2) 84 md/sc 3/ 6

S.F. 159 and shall retain the remaining fifteen percent of the regular 1 program foundation base per pupil, as defined in section 2 257.1, subsection 2, paragraph “b” , as the pupil’s district of 3 residence. 4 c. The school tuition credit may also include any moneys 5 received for the pupil as a result of the non-English-speaking 6 weighting pursuant to section 280.4, subsection 3, for the 7 previous school year multiplied by the state cost per pupil for 8 the previous school year, and if the pupil is also an eligible 9 pupil under section 261E.6, the tuition reimbursement amount 10 as provided in section 261E.7. 11 d. Amounts payable as a school tuition credit may be paid 12 in a lump sum or in installments to the accredited nonpublic 13 school as determined by the department of education. 14 4. A pupil enrolled in an accredited nonpublic school who 15 is receiving a school tuition credit shall be considered, for 16 state school foundation aid purposes, to be attending school 17 in the pupil’s district of residence. A parent or guardian 18 may apply on an annual basis for a school tuition credit for 19 each year that the pupil is enrolled in an accredited nonpublic 20 school. 21 5. In the event that a pupil requires special education 22 pursuant to chapter 256B, a school tuition credit may be 23 utilized only in the event that the pupil is enrolled in an 24 accredited nonpublic school that maintains a special education 25 instructional program that is equipped to meet the pupil’s 26 educational needs. 27 Sec. 5. APPLICABILITY. This Act applies to school budget 28 years beginning on or after July 1, 2012. 29 EXPLANATION 30 This bill provides a school tuition credit for pupils 31 attending accredited nonpublic schools. 32 Pupils starting kindergarten in the school budget year 33 commencing July 1, 2012, may receive a school tuition credit 34 for attending an accredited nonpublic school. Each school 35 -4- LSB 1464XS (2) 84 md/sc 4/ 6

S.F. 159 budget year thereafter, another grade is made eligible for 1 the school tuition credit, so that in the school budget year 2 commencing July 1, 2024, kindergarten through grades 12 are 3 included. 4 The bill requires that a parent or guardian submit an 5 application to the department of education (DE) by January 6 of the preceding school year indicating that the parent 7 or guardian intends to enroll the pupil in an accredited 8 nonpublic school. By March 1, DE shall notify the department 9 of management (DOM) of the number of pupils to receive school 10 tuition credits. 11 DOM shall assign each designated pupil a credit equal to 35 12 percent of the regular program foundation base per pupil. DE 13 in consultation with DOM shall reduce the state aid payments 14 to a local school district for the following school budget 15 year by 65 percent of the regular program foundation base per 16 pupil attributable to each designated pupil. The funds not 17 paid to school districts due to the school tuition credit 18 shall remain in the general fund. A local school district of 19 residence shall then transfer 25 percent of the regular program 20 foundation base per pupil attributable to each designated 21 pupil directly to the applicable accredited nonpublic school 22 district and shall retain the remaining 10 percent of the 23 regular program foundation base per pupil attributable to each 24 designated pupil as the pupil’s district of residence. 25 Beginning in the school budget year commencing July 1, 26 2024, and for succeeding budget years, if an accredited 27 nonpublic school’s average enrollment equals 17 percent of the 28 combined enrollment of the local public school district and 29 the accredited nonpublic school, then DOM shall assign each 30 designated pupil a credit equal to 45 percent of the regular 31 program foundation base per pupil. DE in consultation with 32 DOM shall reduce the state aid payments to a local school 33 district for the following school budget year by 55 percent of 34 the regular program foundation base per pupil attributable to 35 -5- LSB 1464XS (2) 84 md/sc 5/ 6

S.F. 159 each designated pupil. The local school district of residence 1 shall transfer 30 percent of the regular program foundation 2 base per pupil attributable to each designated pupil directly 3 to the accredited nonpublic school and shall retain 15 percent 4 of the regular program foundation base per pupil as the pupil’s 5 district of residence. 6 The credit may include additional moneys received for 7 the pupil for non-English-speaking programs or for tuition 8 reimbursement under the postsecondary enrollment options 9 program. 10 DE shall determine whether the credit amounts are to be paid 11 in a lump sum or in installments to the accredited nonpublic 12 schools. 13 A student attending an accredited nonpublic school shall 14 be counted as attending school in the pupil’s district of 15 residence for state school foundation purposes. A parent or 16 guardian may reapply for the credit each year that the credit 17 is available and that the pupil is enrolled in an accredited 18 nonpublic school. 19 The bill provides that if a pupil requires special education 20 pursuant to Code chapter 256B, a school tuition credit may 21 be used only in the event that the pupil is enrolled in an 22 accredited nonpublic school which maintains a special education 23 instructional program that is appropriate to meet the pupil’s 24 educational needs. 25 The state board of education is directed to adopt rules 26 relating to the applications for the school tuition credit. 27 Code section 257.6 is amended to reflect that pupils receiving 28 a credit are counted as part of a local public school 29 district’s actual enrollment. 30 The bill applies to school budget years beginning on or after 31 July 1, 2012. 32 -6- LSB 1464XS (2) 84 md/sc 6/ 6