HF 2369 (LSB 6194YH (3) 90)

HOUSE FILE 2369

BY  ANDREWS

A BILL FOR

An Act relating to state funding for children receiving competent private instruction or independent private instruction, making penalties applicable, making appropriations, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  299A.13  Home school support distribution program.
   1.  For the purposes of this section:
   a.  “Eligible child” means a child of compulsory attendance age who is receiving competent private instruction or independent private instruction.
   b.  “Home school support distribution” means a distribution of funds equal to twenty percent of the regular program state cost per pupil as described in section 257.9 for the same budget year.
   c.  “School year” means a period from July 1 of a year to June 30 of the following year.
   2.  A home school support distribution fund is created in the state treasury under the control of the department of education consisting of moneys appropriated to the department of education for the purpose of providing home school support distributions under this section. For the fiscal year commencing July 1, 2024, and each succeeding fiscal year, there is appropriated from the general fund of the state to the department of education to be credited to the fund the amount necessary to pay all home school support distributions approved for that fiscal year. The director of the department of education has all powers necessary to carry out and effectuate the purposes, objectives, and provisions of this section pertaining to the fund, including the power to do all of the following:
   a.  Make and enter into contracts with a third-party entity necessary for the administration of the home school support distribution program.
   b.  Procure insurance against any loss in connection with the assets of the fund or require a surety bond.
   c.  Reduce the possibility of waste, fraud, and abuse, and ensure that any technology platform used for the program meets the state’s highest security requirements, including compliance.
   d.  Conduct audits or other reviews necessary to properly administer the program.
   e.  Adopt rules for the administration of the fund and accounts within the fund.
   3.  a.  On or after January 1, but on or before June 30, of each school year, a parent or guardian of an eligible child may request a home school support distribution by submitting an application to the department of education.
   b.  Within thirty calendar days following submission of an application, the department of education or a third-party entity shall notify the parent or guardian of each child approved for the following school year and specify the amount of the home school support distribution for the child, if known at the time of the notice. As soon as practical following the processing of all applications, the department of education or a third-party entity shall determine the number of children approved for a home school support distribution for a school year and provide such information to the department of management.
   c.  Home school support distributions shall only be approved for one school year and applications must be submitted annually for payments in subsequent school years.
   4.  On or before September 15 of each school year, the department of education or a third-party entity shall make a home school support distribution for each child approved for a home school support distribution for that school year. The home school support distribution shall be made to the parent or guardian of an eligible child.
   5.  A person who makes a false claim for the purpose of obtaining a home school support distribution or who knowingly receives a home school support distribution without being legally entitled to do so is guilty of a fraudulent practice under chapter 714.
   6.  a.  A parent or guardian may appeal to the state board of education any administrative decision the department of education or a third-party entity makes pursuant to this section, including but not limited to determinations of eligibility and removal from the program. The department or the third-party entity shall notify the parent or guardian in writing of the appeal process at the same time the department notifies the parent or guardian of the administrative decision. The state board of education shall establish the appeals process consistent with chapter 17A and shall post the appeal process information on the state board of education’s internet site.
   b.  The state board of education shall refer cases of substantial misuse of home school support distribution program funds to the attorney general for the purpose of collection or for the purpose of a criminal investigation if the state board of education obtains evidence of fraudulent use of an account.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to state funding for children receiving competent private instruction or independent private instruction.
   The bill defines “eligible child” as a child of compulsory attendance age who is receiving competent private instruction or independent private instruction.
   The bill defines “home school support distribution” as a distribution of funds equal to 20 percent of the regular program state cost per pupil for the current budget year.
   The bill defines “school year” as a period from July 1 of a year to June 30 of the following year.
   The bill creates a home school support distribution fund in the state treasury under the control of the department of education (DOE) consisting of moneys appropriated to DOE for the purpose of providing home school support distributions. For the fiscal year commencing July 1, 2024, and each succeeding fiscal year, the bill appropriates from the general fund of the state to DOE to be credited to the fund the amount necessary to pay all home school support distributions approved for that fiscal year. The director of DOE has powers necessary to carry out and effectuate the purposes, objectives, and provisions of the home school support distribution program pertaining to the fund that are outlined in the bill.
   The bill allows, on or after January 1, but on or before June 30, of each school year, a parent or guardian of an eligible child to request a home school support distribution by submitting an application to DOE. Within 30 calendar days following submission of an application, DOE or a third-party entity shall notify the parent or guardian of each child approved for the following school year and specify the amount of the home school support distribution for the child, if known at the time of the notice. As soon as practical following the processing of all applications, DOE or a third-party entity shall determine the number of children approved for a home school support distribution for a school year and provide such information to the department of management. The bill limits approval of home school support distributions to a period of one school year and applications must be submitted annually for payments in subsequent school years.
   The bill requires DOE, on or before September 15 of each school year, to make a home school support distribution for each child approved for a home school support distribution for that school year. The home school support distribution must be made to the parent or guardian of an eligible child.
   The bill makes it a fraudulent practice to make a false claim for the purpose of obtaining a home school support distribution or knowingly receive a home school support distribution without being legally entitled to do so. A fraudulent practice’s penalties depend on the value subject to the fraudulent practice, ranging from a simple misdemeanor punishable by a fine up to $300 to a class “C” felony punishable by confinement for no more than 10 years and a fine of at least $1,370 but not more than $13,660.
   The bill allows a parent or guardian to appeal to the state board of education any administrative decision DOE or a third-party entity makes relating to the home school support distribution program, including but not limited to determinations of eligibility and removal from the program. DOE or the third-party entity shall notify the parent or guardian in writing of the appeal process at the same time the DOE notifies the parent or guardian of the administrative decision. The bill requires the state board of education to establish an appeals process and shall post the appeal process information on the state board of education’s internet site.
   The bill requires the state board of education to refer cases of substantial misuse of home school support distribution program funds to the attorney general for the purpose of collection or for the purpose of a criminal investigation if the state board of education obtains evidence of fraudulent use of an account.
   The bill takes effect upon enactment.