H.F. 2369 Section 1. NEW SECTION . 299A.13 Home school support 1 distribution program. 2 1. For the purposes of this section: 3 a. “Eligible child” means a child of compulsory attendance 4 age who is receiving competent private instruction or 5 independent private instruction. 6 b. “Home school support distribution” means a distribution of 7 funds equal to twenty percent of the regular program state cost 8 per pupil as described in section 257.9 for the same budget 9 year. 10 c. “School year” means a period from July 1 of a year to 11 June 30 of the following year. 12 2. A home school support distribution fund is created 13 in the state treasury under the control of the department of 14 education consisting of moneys appropriated to the department 15 of education for the purpose of providing home school support 16 distributions under this section. For the fiscal year 17 commencing July 1, 2024, and each succeeding fiscal year, there 18 is appropriated from the general fund of the state to the 19 department of education to be credited to the fund the amount 20 necessary to pay all home school support distributions approved 21 for that fiscal year. The director of the department of 22 education has all powers necessary to carry out and effectuate 23 the purposes, objectives, and provisions of this section 24 pertaining to the fund, including the power to do all of the 25 following: 26 a. Make and enter into contracts with a third-party entity 27 necessary for the administration of the home school support 28 distribution program. 29 b. Procure insurance against any loss in connection with the 30 assets of the fund or require a surety bond. 31 c. Reduce the possibility of waste, fraud, and abuse, 32 and ensure that any technology platform used for the program 33 meets the state’s highest security requirements, including 34 compliance. 35 -1- LSB 6194YH (3) 90 dg/jh 1/ 5

H.F. 2369 d. Conduct audits or other reviews necessary to properly 1 administer the program. 2 e. Adopt rules for the administration of the fund and 3 accounts within the fund. 4 3. a. On or after January 1, but on or before June 30, of 5 each school year, a parent or guardian of an eligible child may 6 request a home school support distribution by submitting an 7 application to the department of education. 8 b. Within thirty calendar days following submission of 9 an application, the department of education or a third-party 10 entity shall notify the parent or guardian of each child 11 approved for the following school year and specify the amount 12 of the home school support distribution for the child, if known 13 at the time of the notice. As soon as practical following the 14 processing of all applications, the department of education or 15 a third-party entity shall determine the number of children 16 approved for a home school support distribution for a school 17 year and provide such information to the department of 18 management. 19 c. Home school support distributions shall only be approved 20 for one school year and applications must be submitted annually 21 for payments in subsequent school years. 22 4. On or before September 15 of each school year, the 23 department of education or a third-party entity shall make a 24 home school support distribution for each child approved for 25 a home school support distribution for that school year. The 26 home school support distribution shall be made to the parent or 27 guardian of an eligible child. 28 5. A person who makes a false claim for the purpose of 29 obtaining a home school support distribution or who knowingly 30 receives a home school support distribution without being 31 legally entitled to do so is guilty of a fraudulent practice 32 under chapter 714. 33 6. a. A parent or guardian may appeal to the state board 34 of education any administrative decision the department of 35 -2- LSB 6194YH (3) 90 dg/jh 2/ 5

H.F. 2369 education or a third-party entity makes pursuant to this 1 section, including but not limited to determinations of 2 eligibility and removal from the program. The department or 3 the third-party entity shall notify the parent or guardian in 4 writing of the appeal process at the same time the department 5 notifies the parent or guardian of the administrative decision. 6 The state board of education shall establish the appeals 7 process consistent with chapter 17A and shall post the appeal 8 process information on the state board of education’s internet 9 site. 10 b. The state board of education shall refer cases of 11 substantial misuse of home school support distribution program 12 funds to the attorney general for the purpose of collection or 13 for the purpose of a criminal investigation if the state board 14 of education obtains evidence of fraudulent use of an account. 15 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 16 importance, takes effect upon enactment. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to state funding for children receiving 21 competent private instruction or independent private 22 instruction. 23 The bill defines “eligible child” as a child of compulsory 24 attendance age who is receiving competent private instruction 25 or independent private instruction. 26 The bill defines “home school support distribution” as 27 a distribution of funds equal to 20 percent of the regular 28 program state cost per pupil for the current budget year. 29 The bill defines “school year” as a period from July 1 of a 30 year to June 30 of the following year. 31 The bill creates a home school support distribution fund 32 in the state treasury under the control of the department of 33 education (DOE) consisting of moneys appropriated to DOE for 34 the purpose of providing home school support distributions. 35 -3- LSB 6194YH (3) 90 dg/jh 3/ 5

H.F. 2369 For the fiscal year commencing July 1, 2024, and each 1 succeeding fiscal year, the bill appropriates from the general 2 fund of the state to DOE to be credited to the fund the amount 3 necessary to pay all home school support distributions approved 4 for that fiscal year. The director of DOE has powers necessary 5 to carry out and effectuate the purposes, objectives, and 6 provisions of the home school support distribution program 7 pertaining to the fund that are outlined in the bill. 8 The bill allows, on or after January 1, but on or before 9 June 30, of each school year, a parent or guardian of an 10 eligible child to request a home school support distribution 11 by submitting an application to DOE. Within 30 calendar days 12 following submission of an application, DOE or a third-party 13 entity shall notify the parent or guardian of each child 14 approved for the following school year and specify the amount 15 of the home school support distribution for the child, if known 16 at the time of the notice. As soon as practical following the 17 processing of all applications, DOE or a third-party entity 18 shall determine the number of children approved for a home 19 school support distribution for a school year and provide such 20 information to the department of management. The bill limits 21 approval of home school support distributions to a period of 22 one school year and applications must be submitted annually for 23 payments in subsequent school years. 24 The bill requires DOE, on or before September 15 of each 25 school year, to make a home school support distribution for 26 each child approved for a home school support distribution for 27 that school year. The home school support distribution must be 28 made to the parent or guardian of an eligible child. 29 The bill makes it a fraudulent practice to make a false claim 30 for the purpose of obtaining a home school support distribution 31 or knowingly receive a home school support distribution without 32 being legally entitled to do so. A fraudulent practice’s 33 penalties depend on the value subject to the fraudulent 34 practice, ranging from a simple misdemeanor punishable by a 35 -4- LSB 6194YH (3) 90 dg/jh 4/ 5

H.F. 2369 fine up to $300 to a class “C” felony punishable by confinement 1 for no more than 10 years and a fine of at least $1,370 but not 2 more than $13,660. 3 The bill allows a parent or guardian to appeal to the 4 state board of education any administrative decision DOE 5 or a third-party entity makes relating to the home school 6 support distribution program, including but not limited to 7 determinations of eligibility and removal from the program. 8 DOE or the third-party entity shall notify the parent or 9 guardian in writing of the appeal process at the same time 10 the DOE notifies the parent or guardian of the administrative 11 decision. The bill requires the state board of education to 12 establish an appeals process and shall post the appeal process 13 information on the state board of education’s internet site. 14 The bill requires the state board of education to refer 15 cases of substantial misuse of home school support distribution 16 program funds to the attorney general for the purpose of 17 collection or for the purpose of a criminal investigation if 18 the state board of education obtains evidence of fraudulent use 19 of an account. 20 The bill takes effect upon enactment. 21 -5- LSB 6194YH (3) 90 dg/jh 5/ 5