House File 215 - Introduced HOUSE FILE 215 BY WILLS A BILL FOR An Act relating to schools identified for comprehensive 1 support and improvement by authorizing parents or guardians 2 to petition for the closure of an attendance center, 3 for implementation of an education voucher program, or 4 for establishment of a charter school, establishing an 5 education voucher fund, making appropriations, and providing 6 penalties. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 2118YH (2) 89 md/jh

H.F. 215 Section 1. Section 256.7, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 35. Adopt rules relating to applications 3 for an education voucher pursuant to section 256E.4, including 4 application processing timelines and information required to be 5 submitted by a parent or guardian. 6 Sec. 2. NEW SECTION . 256E.1 Definitions. 7 1. “Attendance center” means a public school building 8 that contains classrooms used for instructional purposes for 9 elementary, middle, or secondary school students. 10 2. “School board” means a board of directors regularly 11 elected by the registered voters of a school district. 12 3. “State board” means the state board of education. 13 Sec. 3. NEW SECTION . 256E.2 Alternatives for schools 14 identified for comprehensive support and improvement —— parent 15 petition. 16 1. If an attendance center is identified for comprehensive 17 support and improvement under the federal Every Student 18 Succeeds Act, Pub. L. No. 114-95, the parents or guardians 19 of students enrolled at the attendance center may submit a 20 petition to the school board to either close the attendance 21 center pursuant to section 256E.3 or authorize education 22 vouchers for students of the attendance center under section 23 256E.4. 24 2. A valid petition under this section must state whether 25 the petition is requesting the closure of an attendance center 26 pursuant to section 256E.3 or the authorization of education 27 vouchers under section 256E.4, and must contain the signatures 28 of at least fifty percent of the parents or guardians whose 29 children are enrolled at the attendance center. A valid 30 petition under this section must be received by the school 31 board not later than December 1 of the school year preceding 32 the school year during which the requested action will be 33 implemented. A petition received after that deadline will be 34 considered a petition for the following school year if the 35 -1- LSB 2118YH (2) 89 md/jh 1/ 11

H.F. 215 attendance center continues to meet the criteria of subsection 1 1. 2 3. Unless rulemaking is authorized for another state 3 agency, the state board shall, after consulting with the 4 department of education and the department of management, adopt 5 rules to implement and administer this chapter. 6 Sec. 4. NEW SECTION . 256E.3 Closure of attendance center —— 7 reallocation of students. 8 1. If a valid petition for closure of an attendance center 9 is received by a school board under section 256E.2, the school 10 board shall formulate and implement a plan for the closure 11 of the attendance center and a plan for the reallocation of 12 students currently enrolled at the attendance center and those 13 students who would, but for the closure, be enrolled at the 14 attendance center during the next school year. 15 2. The plan for the reallocation of students to other 16 attendance centers in the school district shall include 17 objective criteria and standards and criteria for prioritizing 18 requests that do not have an adverse impact on the plan. 19 3. a. If other attendance centers in the school district 20 have insufficient classroom space to accommodate the students 21 from the attendance center that is proposed to be closed, the 22 school board shall not close the attendance center and shall 23 instead implement the education voucher program under section 24 256E.4. 25 b. Every school district shall adopt a policy that defines 26 the term “insufficient classroom space” for each attendance 27 center in that district that is consistent with the policy 28 adopted under section 282.18, subsection 2, paragraph “c” . 29 Sec. 5. NEW SECTION . 256E.4 Education voucher program. 30 1. a. If a valid petition authorizing education vouchers 31 is received by a school board under section 256E.2, or if 32 section 256E.3, subsection 3, is applicable, students eligible 33 to enroll in kindergarten through grade twelve and who are 34 enrolled at the attendance center at the time the applicable 35 -2- LSB 2118YH (2) 89 md/jh 2/ 11

H.F. 215 petition is filed are eligible to receive education vouchers. 1 b. Education vouchers shall be made available to parents 2 and guardians in the manner authorized under subsection 3 4, paragraph “c” , for the payment of qualified educational 4 expenses as provided in this section. 5 2. a. (1) By January 31 preceding the school year for 6 which the education voucher is requested, the parent or 7 guardian of the student requesting to receive an education 8 voucher shall submit an application to the department of 9 education, on application forms developed by the department, 10 indicating that the parent or guardian intends to enroll the 11 student in a nonpublic school. 12 (2) In addition to other information deemed appropriate 13 by the department of education, the application shall require 14 certification from the nonpublic school of the student’s 15 enrollment for the following school year. 16 b. By March 1 preceding the school year for which the 17 education voucher is requested, the department of education 18 shall notify the department of management of the number of 19 students designated for the following school year to receive 20 an education voucher. The department of education shall also 21 notify the parent or guardian of such students who are approved 22 to receive an education voucher. 23 c. Education vouchers shall only be approved for one school 24 year per application, and applications must be submitted under 25 paragraph “a” for education vouchers in subsequent school 26 years. 27 3. The department of management shall assign each student an 28 education voucher in an amount equal to seventy-five percent of 29 the district of residence’s regular program district cost per 30 pupil in the same school year. 31 4. An education voucher fund is created in the state 32 treasury under the control of the department of management 33 consisting of moneys appropriated to the department of 34 management for the purpose of providing education vouchers 35 -3- LSB 2118YH (2) 89 md/jh 3/ 11

H.F. 215 under this section. For the fiscal year commencing July 1, 1 2022, and each succeeding fiscal year, there is appropriated 2 from the general fund of the state to the department of 3 management to be credited to the fund the amount necessary 4 to pay all education vouchers approved for that fiscal year. 5 The director of the department of management has all powers 6 necessary to carry out and effectuate the purposes, objectives, 7 and provisions of this section pertaining to the fund, 8 including the power to do all of the following: 9 a. Make and enter into contracts necessary for the 10 administration of the fund. 11 b. Procure insurance against any loss in connection with the 12 assets of the fund or require a surety bond. 13 c. Contract with a private financial management firm to 14 manage the fund, in collaboration with the treasurer of state, 15 including providing for the disbursement of education vouchers 16 in the form of an electronic debit card or checks that are 17 payable directly from the student’s account in the fund. 18 d. Conduct audits or other review necessary to properly 19 administer the program. 20 e. Adopt rules pursuant to chapter 17A for the 21 administration of the fund and accounts in the fund. 22 5. a. For each student approved for an education voucher, 23 the department of management shall establish an account for 24 that student in the education voucher fund. The student’s 25 education voucher shall be deposited into the student’s 26 account on July 1 and funds shall be immediately available 27 for the payment of qualified educational expenses incurred 28 by the parent or guardian for the student during that fiscal 29 year using the payment method authorized under subsection 4, 30 paragraph “c” . 31 b. A nonpublic school or other entity that accepts payment 32 from a parent or guardian using funds from a student’s account 33 in the education voucher fund shall not refund, rebate, or 34 share any portion of such payment with the parent, guardian, 35 -4- LSB 2118YH (2) 89 md/jh 4/ 11

H.F. 215 or student. 1 c. Moneys remaining in a student’s account upon conclusion 2 of the fiscal year shall remain in the student’s account in the 3 education voucher fund for the payment of qualified educational 4 expenses in future fiscal years during which the pupil 5 participates in the program, unless subject to the transfer 6 required under subsection 8. 7 6. a. For purposes of this section, “qualified educational 8 expenses” includes tuition and fees at a nonpublic school, 9 textbooks, fees, or payments for educational therapies 10 including tutoring or cognitive skills training, curriculum 11 fees and materials for a course of study for a specific 12 subject matter or grade level, tuition or fees for nonpublic 13 online education programs, education materials and services 14 for students with disabilities including the cost of 15 paraprofessionals and assistants who are trained in accordance 16 with state law, and other expenses incurred by the parent or 17 guardian that are directly related to the education of the 18 student at a nonpublic school, including a nonpublic school 19 accredited by an independent accrediting agency approved by 20 the department of education. “Qualified educational expenses” 21 does not include transportation costs for the student, the cost 22 of food or refreshments consumed by the student, the cost of 23 clothing for the student, or the cost of disposable materials, 24 including but not limited to paper, notebooks, pencils, pens, 25 and art supplies. 26 b. For purposes of this section, “nonpublic school” means 27 the same as defined in section 285.16. 28 7. A person who makes a false claim for the purpose of 29 obtaining an education voucher provided for in this section or 30 who knowingly receives the voucher or makes a payment from an 31 account in the education voucher fund without being legally 32 entitled to do so is guilty of a fraudulent practice under 33 chapter 714. The false claim for an education voucher or a 34 payment from an account shall be disallowed. If amounts from 35 -5- LSB 2118YH (2) 89 md/jh 5/ 11

H.F. 215 the voucher have been disbursed from the applicable account in 1 the education voucher fund, the department of management shall 2 initiate legal proceedings to recover such amounts. A parent 3 or guardian who violates this subsection is prohibited from 4 participating in the education voucher program in the future. 5 8. For each student with a positive balance in the student’s 6 account in the education voucher fund upon graduation from 7 high school or upon termination of the student’s enrollment in 8 the nonpublic school, moneys in the student’s account shall be 9 transferred by the department for deposit in the general fund 10 of the state. 11 9. A nonpublic school that accepts payment from a parent or 12 guardian using funds from a student’s account in the education 13 voucher fund is not an agent of this state or other political 14 subdivision of this state. 15 Sec. 6. Section 256F.3, subsection 2, paragraph a, Code 16 2021, is amended to read as follows: 17 a. (1) To receive approval to establish a charter school 18 in accordance with this chapter , the principal, teachers, or 19 parents or guardians of students at an existing public school 20 shall submit an application to the school board to convert an 21 existing attendance center to a charter school. An attendance 22 center shall not enter into a charter school contract with a 23 school district under this chapter unless the attendance center 24 is located within the school district. The 25 (2) (a) Except as otherwise provided in subparagraph 26 division (b), the application shall demonstrate the support 27 of at least fifty percent of the teachers employed at the 28 school on the date of the submission of the application and 29 fifty percent of the parents or guardians voting whose children 30 are enrolled at the school, provided that a majority of the 31 parents or guardians eligible to vote participate in the ballot 32 process, according to procedures established by rules of the 33 state board. 34 (b) If the attendance center at which the charter school is 35 -6- LSB 2118YH (2) 89 md/jh 6/ 11

H.F. 215 to be established is identified for comprehensive support and 1 improvement under the federal Every Student Succeeds Act, Pub. 2 L. No. 114-95, the application shall demonstrate the support of 3 at least fifty percent of the parents or guardians voting whose 4 children are enrolled at the school, provided that a majority 5 of the parents or guardians eligible to vote participate in the 6 ballot process, according to procedures established by rules 7 of the state board. 8 Sec. 7. 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 any education voucher under section 256E.4 received 12 during the tax year by a taxpayer authorized to spend such 13 voucher amounts for qualified educational expenses. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to schools identified for comprehensive 18 support and improvement under the federal Every Student 19 Succeeds Act, by authorizing parents or guardians to petition 20 for the closure of an attendance center, for implementation of 21 an education voucher program, or for establishment of a charter 22 school. 23 Under the bill, if an attendance center is identified for 24 comprehensive support and improvement under the federal Every 25 Student Succeeds Act, the parents or guardians of students 26 enrolled at the attendance center may submit a petition to the 27 school board to either close the attendance center or authorize 28 education vouchers for students of the attendance center. A 29 valid petition must state whether the petition is requesting 30 the closure of an attendance center or the authorization of 31 education vouchers, and must contain the signatures at least 50 32 percent of the parents or guardians whose children are enrolled 33 at the attendance center. A valid petition must be received by 34 the school board not later than December 1 of the school year 35 -7- LSB 2118YH (2) 89 md/jh 7/ 11

H.F. 215 preceding the school year during which the requested action 1 will be implemented. A petition received after that deadline 2 will be considered a petition for the following school year 3 if the attendance center continues to meet the criteria for a 4 persistently lowest-achieving school. 5 If a valid petition for closure of an attendance center 6 is received, the school board shall formulate and implement 7 a plan for the closure of the attendance center and a plan 8 for the reallocation of students currently enrolled at the 9 attendance center and those students who would, but for the 10 closure, be enrolled at the attendance center during the next 11 school year. The bill requires the plan for the reallocation 12 of students to other attendance centers in the school district 13 to include objective criteria and standards and criteria for 14 prioritizing requests that do not have an adverse impact on 15 the plan. If other attendance centers in the school district 16 have insufficient classroom space to accommodate the students 17 from the attendance center proposed to be closed, the school 18 board shall not close the attendance center but shall instead 19 implement the education voucher program established in the 20 bill. 21 Under the bill, the following students shall be eligible 22 to receive an education voucher: (1) students eligible to 23 enroll in kindergarten through grade 12 who are enrolled at an 24 attendance center at the time a petition authorizing education 25 vouchers is filed with the school board and (2) students 26 eligible to enroll in kindergarten through grade 12 who are 27 enrolled at an attendance center that is proposed to be closed 28 under the bill and for whom there is insufficient classroom 29 space at other attendance centers in the school district. 30 By January 31 preceding the school year for which the 31 education voucher is requested, the parent or guardian of 32 the student requesting to receive an education voucher shall 33 submit an application to the department of education, on 34 application forms developed by the department, indicating 35 -8- LSB 2118YH (2) 89 md/jh 8/ 11

H.F. 215 that the parent or guardian intends to enroll the student in 1 a nonpublic school. In addition to such information deemed 2 appropriate by the department of education, the application 3 shall require certification from the nonpublic school of the 4 student’s enrollment for the following school year. By March 5 1 preceding the school year for which the education voucher 6 is requested, the department of education shall notify the 7 department of management of the number of students designated 8 for the following school year to receive an education voucher. 9 The department of education shall also notify the parent or 10 guardian of such students who are approved to receive an 11 education voucher. 12 The bill authorizes education vouchers to be approved for 13 one school year per application, and additional applications 14 must be submitted for education vouchers in subsequent school 15 years. The education voucher is in an amount equal to 75 16 percent of the district of residence’s regular program district 17 cost per pupil in the same school year. 18 For the fiscal year commencing July 1, 2022, and each 19 succeeding fiscal year, the bill appropriates from the general 20 fund of the state to the department of management to be 21 credited to the education voucher fund an amount necessary to 22 pay all education vouchers approved for that fiscal year. For 23 each student approved for an education voucher, the department 24 is required to establish an account for that student in the 25 education voucher fund. The amount of the student’s education 26 voucher shall be deposited into the student’s account on July 1 27 and such amount shall be immediately available for the payment 28 of qualified educational expenses, as defined in the bill, 29 incurred by the parent or guardian for the student during that 30 fiscal year. 31 The bill specifies that a nonpublic school or other entity 32 that accepts payment from a parent or guardian using funds from 33 a student’s account in the education voucher fund shall not 34 refund, rebate, or share any portion of such payment with the 35 -9- LSB 2118YH (2) 89 md/jh 9/ 11

H.F. 215 parent, guardian, or student. 1 Moneys remaining in a student’s account upon conclusion 2 of the fiscal year shall remain in the student’s account 3 in the education voucher fund for the payment of qualified 4 educational expenses in future fiscal years during which 5 the pupil participates in the program. However, for each 6 student with a positive balance in the student’s account in 7 the education voucher fund upon graduation from high school or 8 upon termination of the student’s enrollment in the nonpublic 9 school, those moneys in the student’s account shall be 10 transferred for deposit in the general fund of the state. 11 The bill provides that a person who makes a false claim for 12 the purpose of obtaining an education voucher or who knowingly 13 receives the voucher or makes a payment from an account within 14 the education voucher fund without being legally entitled to 15 do so is guilty of a fraudulent practice and is subject to a 16 criminal penalty. The bill allows the department of management 17 to initiate legal proceedings to recover vouchers and amounts 18 improperly awarded or paid from accounts under the bill. 19 The bill provides that a nonpublic school that accepts 20 payment from a parent or guardian using funds from a student’s 21 account in the education voucher fund is not an agent of this 22 state or other political subdivision of this state. 23 The bill provides that moneys from an education voucher 24 under the bill are not taxable income under Code chapter 422. 25 Code chapter 256F establishes a process by which the 26 principal, teachers, or parents and guardians of students at an 27 existing public school may apply to the school board to convert 28 an existing attendance center to a charter school. Current 29 law requires the application to demonstrate the support of at 30 least 50 percent of the teachers employed at the school on the 31 date of the submission of the application and 50 percent of the 32 parents or guardians voting whose children are enrolled at the 33 school, provided that a majority of the parents or guardians 34 eligible to vote participate in the ballot process, according 35 -10- LSB 2118YH (2) 89 md/jh 10/ 11

H.F. 215 to procedures established by rules of the state board. 1 The bill modifies the application requirements for 2 converting an existing attendance center to a charter school if 3 the attendance center is identified for comprehensive support 4 and improvement under the federal Every Student Succeeds Act. 5 Under those circumstances, the application does not need to 6 demonstrate teacher support and shall only be required to 7 demonstrate the support of at least 50 percent of the parents 8 or guardians voting whose children are enrolled at the school, 9 provided that a majority of the parents or guardians eligible 10 to vote participate in the ballot process, according to 11 procedures established by rules of the state board. 12 -11- LSB 2118YH (2) 89 md/jh 11/ 11