Senate File 431 - Introduced SENATE FILE 431 BY ZAUN A BILL FOR An Act establishing an education savings grant program for 1 certain pupils attending a nonpublic school or receiving 2 competent private instruction, establishing an education 3 savings grant fund, providing an income tax exemption, 4 making appropriations, providing penalties, and including 5 applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1971XS (4) 89 md/jh

S.F. 431 Section 1. Section 256.9, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 63. Adopt rules relating to the 3 administration of and applications for the education savings 4 grant program pursuant to section 257.11B, including but not 5 limited to application processing timelines, information 6 required to be submitted by a parent or guardian, and payment 7 and recovery of education savings grant amounts. As part of 8 administration of the education savings grant program, the 9 department shall maintain updated lists of education service 10 providers that provide services that are qualified educational 11 expenses under section 257.11B, subsection 6, and provide 12 parents and guardians with written explanations of allowable 13 uses of education savings grant funds. Any rules adopted by 14 the department should avoid excessive bureaucracy and overly 15 prescriptive mandates and instead focus on easing parental 16 involvement and encouraging educational service providers to 17 provide parents and pupils with a broad array of educational 18 options. 19 Sec. 2. NEW SECTION . 257.11B Education savings grant 20 program. 21 1. a. For the school budget year beginning July 1, 2022, 22 and each succeeding school budget year, resident pupils 23 eligible to enroll in kindergarten through grade twelve and who 24 are either attending a nonpublic school, as defined in section 25 285.16, or are receiving competent private instruction under 26 chapter 299A, and who are not otherwise ineligible under this 27 section, shall be eligible to receive an education savings 28 grant in the manner provided in this section. 29 b. Education savings grants shall be made available to 30 parents and guardians in the manner authorized under subsection 31 4, paragraph “c” , for the payment of qualified educational 32 expenses as provided in this section. 33 c. For purposes of this section, “resident” means the same 34 as defined in section 282.1, subsection 2. 35 -1- LSB 1971XS (4) 89 md/jh 1/ 15

S.F. 431 2. a. (1) By January 31 preceding the school year for 1 which the education savings grant is requested, the parent 2 or guardian of the pupil requesting to receive an education 3 savings grant shall submit an application to the department of 4 education, on application forms developed by the department 5 of education, indicating that the parent or guardian intends 6 to enroll the pupil in a nonpublic school or place the pupil 7 under competent private instruction under chapter 299A for the 8 entirety of the school year. 9 (2) In addition to such information deemed appropriate by 10 the department of education, the application shall require 11 certification from the nonpublic school of the pupil’s 12 enrollment or a statement from the intended provider of 13 competent private instruction for the pupil for the following 14 school year. 15 (3) The department shall ensure accessibility to 16 application materials, including by providing for an electronic 17 method of applying for the education savings grant. 18 (4) The department of education shall approve each 19 application received under this section that satisfies the 20 requirements to receive an education savings grant for the 21 school year. 22 (5) The department of education shall notify the parent or 23 guardian of a pupil with a disability that participation in the 24 education savings grant program is a parental placement under 25 20 U.S.C. §1412, and provide an explanation of the rights that 26 parentally placed students possess under federal law and any 27 applicable state laws and regulations. 28 b. By March 1 preceding the school year for which the 29 education savings grant is requested, the department of 30 education shall determine the number of pupils in each school 31 district approved to receive a grant for the following school 32 year and shall notify the parent or guardian of each pupil 33 approved for the following school year to receive an education 34 savings grant and the amount of the education savings grant for 35 -2- LSB 1971XS (4) 89 md/jh 2/ 15

S.F. 431 the pupil. 1 c. Education savings grants shall only be approved for one 2 school year and applications must be submitted annually for 3 education savings grants in subsequent school years. 4 3. The department of education shall assign each pupil an 5 education savings grant in an amount equal to the sum of all of 6 the following for the same school budget year: 7 a. The product of the pupil’s weighted enrollment that 8 would otherwise be assigned to the pupil under this chapter if 9 the pupil was enrolled in the pupil’s district of residence 10 multiplied by the regular program state cost 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 h. The total area education agency media services state cost 25 per pupil. 26 i. The total area education agency educational services 27 state cost per pupil. 28 j. The total special education support services district 29 cost per pupil for the pupil’s district of residence. 30 4. An education savings grant fund is created in the state 31 treasury under the control of the department of education 32 consisting of moneys appropriated to the department of 33 education for the purpose of providing education savings grants 34 under this section. For the fiscal year commencing July 1, 35 -3- LSB 1971XS (4) 89 md/jh 3/ 15

S.F. 431 2022, and each succeeding fiscal year, there is appropriated 1 from the general fund of the state to the department of 2 education to be credited to the fund the amount necessary to 3 pay all education savings grants approved for that fiscal year, 4 including amounts necessary to administer the program. The 5 department of education may withhold from amounts deposited 6 in the education savings grant fund up to a maximum of five 7 percent of the funds for the first two years of the program and 8 up to three percent of the funds for each year thereafter to 9 cover the costs of administering the program. The director of 10 the department of education has all powers necessary to carry 11 out and effectuate the purposes, objectives, and provisions of 12 this section pertaining to the fund, including the power to do 13 all of the following: 14 a. Make and enter into contracts necessary for the 15 administration of the fund. 16 b. Procure insurance against any loss in connection with the 17 assets of the fund or require a surety bond. 18 c. Contract with a private financial management firm to 19 manage the fund, in collaboration with the treasurer of state, 20 including providing for the disbursement of education savings 21 grants in the form of an electronic debit card or checks that 22 are payable directly from the pupil’s account within the fund. 23 The payment system implemented by the department shall be 24 commercially viable, cost-effective, not reliant on requiring 25 a parent or guardian to be reimbursed for out-of-pocket 26 expenses, and provide for a method of preapproval for qualified 27 educational expenses. 28 d. Conduct audits or other reviews necessary to properly 29 administer the program. The department of education shall 30 minimally conduct random audits of education savings grants on 31 an annual basis. 32 e. Establish or contract for the establishment of an online 33 and telephone fraud reporting service. 34 f. Adopt rules for the administration of the fund and 35 -4- LSB 1971XS (4) 89 md/jh 4/ 15

S.F. 431 accounts within the fund. 1 5. a. For each pupil approved for an education savings 2 grant, the department of education shall establish an account 3 for that pupil in the education savings grant fund. The amount 4 of the pupil’s education savings grant shall be deposited 5 into the pupil’s account on July 1, and such amount shall be 6 immediately available for the payment of qualified educational 7 expenses incurred by the parent or guardian for the pupil 8 during that fiscal year using the payment method authorized 9 under subsection 4, paragraph “c” . 10 b. A nonpublic school or provider of competent private 11 instruction that accepts payment from a parent or guardian 12 using funds from a pupil’s account in the education savings 13 grant fund shall not refund, rebate, or share any portion of 14 such payment with the parent, guardian, or pupil. 15 c. Moneys remaining in a pupil’s account upon conclusion 16 of the fiscal year shall remain in the pupil’s account in the 17 education savings grant fund for the payment of qualified 18 educational expenses in future fiscal years during which the 19 pupil participates in the program or for the payment of higher 20 education costs as provided under subsection 8. 21 d. A parent or guardian is authorized to make payments for 22 the costs of educational expenses not covered by the funds 23 in the pupil’s account, but shall not be permitted to make 24 deposits into a pupil’s account in the education savings grant 25 fund. 26 6. a. The parent or guardian of each pupil participating in 27 the program shall agree in writing to use the funds deposited 28 in the pupil’s account in the education savings grant fund for 29 only qualified educational expenses. The written agreement 30 between the parent or guardian and the department of education 31 shall include provisions promising that the parent or guardian 32 will provide an education for the pupil in at least the 33 subjects of reading, language, mathematics, science, and social 34 studies during the school year; will not enroll the pupil 35 -5- LSB 1971XS (4) 89 md/jh 5/ 15

S.F. 431 as a full-time student in a public school during the school 1 year; and will comply with the rules and requirements of the 2 education savings grant program. 3 b. For purposes of this section, “qualified educational 4 expenses” includes tuition and fees at a nonpublic school; 5 textbooks; school uniforms; fees or payments for educational 6 therapies including tutoring or cognitive skills training; 7 curriculum fees and materials for a course of study for 8 a specific subject matter or grade level; tuition or fees 9 for nonpublic online education programs; tuition and fees 10 for summer education programs and specialized after-school 11 education programs, but excluding after-school child care; 12 tuition for vocational and life skills education, including 13 occupational, behavioral, physical, speech-language, and 14 audiology therapies; educational services, classes, and 15 extracurricular activities contracted for and provided by 16 a public school or a charter school; education materials 17 and services for pupils with disabilities, including the 18 cost of paraprofessionals and assistants who are trained in 19 accordance with state law; computer hardware or technology 20 devices that are primarily used for educational needs of the 21 pupil; educational software and applications; standardized test 22 fees; advanced placement examinations or examinations related 23 to postsecondary education admission or credentialing; fees 24 for transportation paid to a fee-for-service transportation 25 provider for the pupil to travel to and from an education 26 service provider; qualified education expenses, as defined in 27 section 12D.1, excluding room and board expenses; and other 28 expenses incurred by the parent or guardian that are directly 29 related to the education of the pupil under competent private 30 instruction or at a nonpublic school, including a nonpublic 31 school accredited by an independent accrediting agency approved 32 by the department of education. 33 c. (1) The department of education shall establish a 34 parent review committee to assist the department in examining 35 -6- LSB 1971XS (4) 89 md/jh 6/ 15

S.F. 431 whether certain types of educational services and goods meet 1 the definition of qualified educational expenses and to provide 2 recommendations to the department about how to implement, 3 administer, and improve the education savings grant program. 4 (2) The parent review committee shall consist of seven 5 members appointed by the director of the department of 6 education. 7 (3) Each member shall be a parent or guardian of a pupil 8 participating in the program. 9 (4) The seven members of the committee shall represent no 10 fewer than four counties in the state. 11 (5) The seven members serve at the pleasure of the director 12 of the department of education for terms of one calendar year 13 and may be reappointed. 14 (6) The director of the department of education, or the 15 director’s designee, shall serve as the nonvoting chairperson 16 of the committee. 17 7. a. A person who makes a false claim for the purpose 18 of obtaining an education savings grant provided for in this 19 section or who knowingly receives the grant or makes a payment 20 from an account within the education savings grant fund without 21 being legally entitled to do so is guilty of a fraudulent 22 practice under chapter 714. The false claim for an education 23 savings grant or a payment from an account shall be disallowed. 24 The department of education shall also close the pupil’s 25 account in the education savings grant fund and transfer any 26 remaining moneys in the account for deposit in the general fund 27 of the state. If the improperly obtained amounts from the 28 grant have been disbursed from the applicable account in the 29 education savings grant fund, the department of education shall 30 recover such amounts from the parent or guardian, or from the 31 pupil for purposes of subsection 8, including by initiating 32 legal proceedings to recover such amounts, if necessary. A 33 parent or guardian, or a pupil for purposes of subsection 34 8, who commits a fraudulent practice under this section is 35 -7- LSB 1971XS (4) 89 md/jh 7/ 15

S.F. 431 prohibited from participating in the education savings grant 1 program in the future. The department of education may refer 2 cases of substantial fraudulent practice or other abuse of 3 the program to the attorney general. The department may 4 also prohibit the goods or services of an education provider 5 or vendor from being a qualified educational expense upon 6 a finding that the provider or vendor intentionally or 7 substantially misrepresented the goods or services or routinely 8 failed to provide pupils with promised educational goods or 9 services. 10 b. (1) For pupils enrolled in a nonpublic school, if, prior 11 to the end of the required attendance period of the school 12 year, a pupil who receives an education savings grant withdraws 13 from enrollment in the nonpublic school or is expelled, the 14 nonpublic school shall notify the department of education in 15 writing of the pupil’s withdrawal or expulsion, and the pupil’s 16 parent or guardian shall notify the department of education of 17 the pupil’s withdrawal or expulsion from the nonpublic school. 18 A pupil’s expulsion from the nonpublic school prior to the end 19 of the required attendance period for the school year shall 20 invalidate the pupil’s eligibility for the education savings 21 grant for the school budget year. A pupil’s withdrawal from a 22 nonpublic school prior to the end of the required attendance 23 period of the school year shall invalidate the pupil’s 24 eligibility for the education savings grant for the school 25 budget year unless the withdrawal is the result of a change 26 in residence of the pupil and the pupil, following written 27 notice by the parent or guardian and certification by the new 28 nonpublic school to the department of education, enrolls in a 29 different nonpublic school in this state for the remainder of 30 the school year. 31 (2) Upon receipt of a notice of expulsion under subparagraph 32 (1), the department of education shall close the pupil’s 33 account in the education savings grant fund and transfer any 34 remaining moneys in the account for deposit in the general 35 -8- LSB 1971XS (4) 89 md/jh 8/ 15

S.F. 431 fund of the state. In addition, if amounts from the grant 1 for the school budget year during which the pupil is expelled 2 have been disbursed from the expelled pupil’s account in the 3 education savings grant fund, the department of education shall 4 recover such amounts from the parent or guardian, including 5 by initiating legal proceedings to recover such amounts, if 6 necessary. 7 (3) Upon receipt of a notice of withdrawal under 8 subparagraph (1) and a determination that the pupil’s 9 withdrawal was not the result of a change in residence, the 10 department of education shall cease disbursements of remaining 11 moneys in the pupil’s account in the education savings grant 12 fund and maintain the pupil’s account if and until such time 13 that the pupil uses the funds for qualified education expenses 14 under subsection 8. In addition, if amounts from the grant 15 for the school budget year during which the withdrawal occurs 16 have been disbursed from the pupil’s account in the education 17 savings grant fund, the department of education shall recover 18 such amounts from the parent or guardian to the extent the 19 amount disbursed exceeds the amount of the grant proportionate 20 to the remaining portion of the school year following the 21 withdrawal, including by initiating legal proceedings to 22 recover such amounts, if necessary. 23 (4) Upon receipt of a notice of withdrawal under 24 subparagraph (1) and a determination that the withdrawal was 25 the result of a change in residence but that the pupil did not 26 enroll in a different nonpublic school in this state for the 27 remainder of the school year, the department of education shall 28 cease disbursements of remaining moneys in the pupil’s account 29 in the education savings grant fund and maintain the pupil’s 30 account if and until such time that the pupil uses the funds 31 for qualified education expenses under subsection 8. 32 (5) If a pupil’s eligibility is invalidated under the 33 provisions of subparagraph (1), the pupil shall be ineligible 34 for an education savings grant for the following school budget 35 -9- LSB 1971XS (4) 89 md/jh 9/ 15

S.F. 431 year. 1 c. (1) For pupils receiving competent private instruction, 2 if, prior to the end of the school year, a pupil who receives 3 an education savings grant withdraws from receiving competent 4 private instruction, the pupil’s parent or guardian shall 5 notify the department of education of the pupil’s withdrawal. 6 A pupil’s withdrawal from competent private instruction prior 7 to the end of the school year shall invalidate the pupil’s 8 eligibility for the education savings grant for the school 9 budget year unless the pupil enrolls in a nonpublic school in 10 this state for the remainder of the school year. 11 (2) Upon receipt of a notice of withdrawal under 12 subparagraph (1) and a determination that the pupil’s 13 withdrawal was not followed by enrollment in a nonpublic 14 school, the department of education shall cease disbursements 15 of remaining moneys in the pupil’s account in the education 16 savings grant fund and maintain the pupil’s account if and 17 until such time that the pupil uses the funds for qualified 18 education expenses under subsection 8. In addition, if 19 amounts from the grant for the school budget year during which 20 the withdrawal occurs have been disbursed from the pupil’s 21 account in the education savings grant fund, the department 22 of education shall recover such amounts from the parent or 23 guardian to the extent the amount disbursed exceeds the amount 24 of the grant proportionate to the remaining portion of the 25 school year following the withdrawal, including by initiating 26 legal proceedings to recover such amounts, if necessary. 27 8. For each pupil with a positive balance in the pupil’s 28 account in the education savings grant fund upon graduation 29 from high school or completion of an equivalent level of 30 competent private instruction under chapter 299A, the 31 department of education shall maintain the account in the 32 fund until the pupil is twenty-six years of age. Following 33 graduation from high school or completion of an equivalent 34 level of competent private instruction until the pupil is 35 -10- LSB 1971XS (4) 89 md/jh 10/ 15

S.F. 431 twenty-six years of age, moneys in the pupil’s account may be 1 used for qualified education expenses, as defined in section 2 12D.1, incurred by the pupil while attending an institution of 3 higher education. Payments from a pupil’s account for higher 4 education costs shall be made in the same manner as payments 5 for qualified educational expenses under subsection 5. Moneys 6 in a pupil’s account when the pupil turns twenty-six years of 7 age shall be transferred by the department of education for 8 deposit in the general fund of the state. 9 9. a. A parent may appeal to the state board of education 10 any administrative decision the department of education 11 makes pursuant to this section, including but not limited 12 to determinations of eligibility, allowable expenses, and 13 removal from the program. The department shall notify the 14 parent or guardian in writing of the appeal process at the same 15 time the department notifies the parent or guardian of the 16 administrative decision. The state board of education shall 17 establish the appeals process consistent with chapter 17A and 18 shall post such appeal process information on the state board 19 of education’s internet site. 20 b. The state board of education may refer cases of 21 substantial misuse of education savings grant funds to the 22 attorney general for the purpose of collection or for the 23 purpose of a criminal investigation if the state board of 24 education obtains evidence of fraudulent use of an account. 25 10. a. This section shall not be construed to require that 26 a pupil participating in the program be enrolled in either a 27 private school or nonpublic online school. 28 b. This section shall not be construed to authorize the 29 state or any political subdivision of the state to exercise 30 authority over any nonpublic school or provider of competent 31 private instruction or construed to require a nonpublic school 32 to modify its academic standards for admission or educational 33 program in order to receive payment from a parent or guardian 34 using funds from a pupil’s account in the education savings 35 -11- LSB 1971XS (4) 89 md/jh 11/ 15

S.F. 431 grant fund. A nonpublic school or provider of competent 1 private instruction that accepts payment from a parent or 2 guardian using funds from a pupil’s account in the education 3 savings grant fund is not an agent of this state or of a 4 political subdivision of this state. Rules adopted by the 5 department of education to implement this section that impose 6 an undue burden on a nonpublic school or provider of competent 7 private instruction are invalid. 8 Sec. 3. 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 an education savings grant under section 257.11B 12 received by the taxpayer for payment of qualified educational 13 expenses. 14 Sec. 4. 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 Act enacting section 257.11B. 18 Sec. 5. APPLICABILITY. The following applies to tax years 19 beginning on or after January 1, 2022: 20 The section of this Act enacting section 422.7, subsection 21 51. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill establishes an education savings grant program 26 for certain pupils attending a nonpublic school or receiving 27 competent private instruction. 28 For the school budget year beginning July 1, 2022, and each 29 succeeding school budget year, resident pupils eligible to 30 enroll in kindergarten through grade 12 and who are either 31 attending a nonpublic school or are receiving competent private 32 instruction under Code chapter 299A, and who are not otherwise 33 ineligible under the bill, are eligible to receive an education 34 savings grant. 35 -12- LSB 1971XS (4) 89 md/jh 12/ 15

S.F. 431 By January 31 preceding the school year for which the 1 education savings grant is requested, the parent or guardian of 2 the pupil requesting to receive an education savings grant must 3 submit an application to the department of education indicating 4 that the parent or guardian intends to enroll the pupil in a 5 nonpublic school or provide competent private instruction for 6 the school year. 7 The bill requires that by March 1 preceding the school 8 year for which the education savings grant is requested, the 9 department of education must notify the parent or guardian of 10 each pupil approved for the following school year to receive an 11 education savings grant and the amount of the education savings 12 grant for the pupil, as specified in the bill. Education 13 savings grants must be approved for each school year and 14 applications must be submitted each year. 15 The bill creates an education savings grant fund in 16 the state treasury under the control of the department of 17 education consisting of moneys appropriated to the department 18 of education for the purpose of providing education savings 19 grants and for administration of the program as specified in 20 the bill. For the fiscal year commencing July 1, 2022, and 21 each succeeding fiscal year, the bill appropriates from the 22 general fund of the state to the department of education for 23 deposit in the fund the amount necessary to pay all education 24 savings grants approved for that fiscal year, including amounts 25 used by the department to administer the program. For each 26 pupil approved for an education savings grant, the department 27 of education must establish an account for that pupil in the 28 education savings grant fund. The amount of the pupil’s 29 education savings grant is deposited into the pupil’s account 30 on July 1 and such amount is available for use by parents and 31 guardians for the payment of qualified educational expenses, as 32 defined in the bill, incurred by the parent or guardian for the 33 pupil during that fiscal year. 34 The bill authorizes the department of education to 35 -13- LSB 1971XS (4) 89 md/jh 13/ 15

S.F. 431 contract with a private financial management firm to manage 1 the education savings grant fund, in collaboration with the 2 treasurer of state, including providing for the disbursement 3 of education savings grants in the form of an electronic debit 4 card or checks that are payable directly from the pupil’s 5 account within the fund. 6 The parent or guardian of each pupil participating in the 7 program must agree in writing to use the funds deposited in 8 the pupil’s account in the education savings grant fund for 9 only qualified educational expenses. The written agreement 10 between the parent or guardian and the department of education 11 must include provisions promising that the parent or guardian 12 will provide an education for the pupil in at least the 13 subjects of reading, language, mathematics, science, and social 14 studies during the school year; will not enroll the pupil 15 as a full-time student in a public school during the school 16 year; and will comply with the rules and requirements of the 17 education savings grant program. 18 The bill requires the department of education to establish a 19 parent review committee to assist the department in examining 20 whether certain types of educational services and goods meet 21 the definition of qualified educational expenses and to provide 22 recommendations to the department about how to implement, 23 administer, and improve the education savings grant program. 24 The bill provides that moneys remaining in a pupil’s account 25 upon the conclusion of the fiscal year shall remain in the 26 pupil’s account in the education savings grant fund for the 27 payment of qualified educational expenses in future fiscal 28 years during which the pupil participates in the program or for 29 higher education costs as authorized in the bill. 30 Under the bill, for each pupil with a positive balance in 31 the pupil’s account in the education savings grant fund upon 32 graduation from high school or completion of an equivalent 33 level of competent private instruction, the department of 34 education is required to maintain the account in the fund until 35 -14- LSB 1971XS (4) 89 md/jh 14/ 15

S.F. 431 the pupil reaches the age of 26. Until the pupil reaches the 1 age limitation, moneys in the pupil’s account may be used by 2 the pupil for qualified education expenses, as defined in Code 3 section 12D.1. Moneys in a pupil’s account when the pupil 4 reaches the age limitation are transferred by the department of 5 education for deposit in the general fund of the state. 6 The bill establishes procedures for parent or guardian 7 appeals to the state board of education and provides that a 8 person who makes a false claim for the purpose of obtaining an 9 education savings grant or who knowingly receives the grant or 10 makes a payment from an account in the education savings grant 11 fund without being legally entitled to do so is guilty of a 12 fraudulent practice and is subject to a criminal penalty. The 13 bill directs the department of education to recover grants and 14 amounts improperly awarded or paid and requires the closure 15 of the pupil’s account and transfer of all remaining moneys 16 to the general fund of the state. The bill also establishes 17 requirements and procedures for parents or guardians and for 18 the department of education when a pupil receiving an education 19 savings grant withdraws or is expelled from the nonpublic 20 school or withdraws from competent private instruction prior to 21 the end of the required attendance period of the school year, 22 including requirements for disposition of the pupil’s account 23 within the education savings grant fund and recovery of grant 24 funds. 25 The bill provides that an education savings grant received 26 by a taxpayer is not taxable income for purposes of state 27 individual income taxation. This provision of the bill applies 28 to tax years beginning on or after January 1, 2022. 29 The section of the bill enacting the education savings 30 grant program applies to school budget years and fiscal years 31 beginning on or after July 1, 2022. 32 -15- LSB 1971XS (4) 89 md/jh 15/ 15