House File 2737 - Introduced HOUSE FILE 2737 BY MATSON , EHLERT , GOSA , RAMIREZ , LEVIN , KURTH , WILBURN , SRINIVAS , B. MEYER , BAGNIEWSKI , WICHTENDAHL , AMOS JR. , SCHOLTEN , MADISON , BAETH , and CROKEN A BILL FOR An Act relating to the education savings account program, 1 including modifying eligibility provisions, providing 2 a future repeal date, and including effective date and 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6087YH (5) 91 mb/md

H.F. 2737 Section 1. Section 256.9, subsection 66, Code 2026, is 1 amended by striking the subsection. 2 Sec. 2. Section 257.10, subsection 9, paragraph c, 3 subparagraph (1), Code 2026, is amended to read as follows: 4 (1) The unadjusted teacher salary supplement district cost 5 is the teacher salary supplement district cost per pupil for 6 each school district for a budget year multiplied by the sum 7 of the budget enrollment for that school district plus the 8 number of resident pupils in the school district that received 9 an education savings account payment under section 257.11B for 10 the base year . 11 Sec. 3. Section 257.10, subsection 10, paragraph c, 12 subparagraph (1), Code 2026, is amended to read as follows: 13 (1) The unadjusted professional development supplement 14 district cost is the professional development supplement 15 district cost per pupil for each school district for a budget 16 year multiplied by the sum of the budget enrollment for that 17 school district plus the number of resident pupils in the 18 school district that received an education savings account 19 payment under section 257.11B for the base year . 20 Sec. 4. Section 257.10, subsection 11, paragraph c, 21 subparagraph (1), Code 2026, is amended to read as follows: 22 (1) The unadjusted early intervention supplement district 23 cost is the early intervention supplement district cost per 24 pupil for each school district for a budget year multiplied 25 by the sum of the budget enrollment for that school district 26 plus the number of resident pupils in the school district that 27 received an education savings account payment under section 28 257.11B for the base year . 29 Sec. 5. Section 257.10, subsection 12, paragraph c, 30 subparagraph (1), Code 2026, is amended to read as follows: 31 (1) The unadjusted teacher leadership supplement district 32 cost is the teacher leadership supplement district cost per 33 pupil for each school district for a budget year multiplied 34 by the sum of the budget enrollment for that school district 35 -1- LSB 6087YH (5) 91 mb/md 1/ 4

H.F. 2737 plus the number of resident pupils in the school district that 1 received an education savings account payment under section 2 257.11B for the base year . 3 Sec. 6. Section 257.11B, subsection 2, paragraph a, 4 subparagraph (3), Code 2026, is amended to read as follows: 5 (3) For the school budget years year beginning on or after 6 July 1, 2025, and the school budget year beginning July 1, 7 2026, resident pupils eligible to enroll in kindergarten 8 through grade twelve who attend a nonpublic school for the 9 applicable school budget year shall be eligible to receive an 10 education savings account payment. 11 Sec. 7. Section 257.11B, subsection 2, paragraph a, Code 12 2026, is amended by adding the following new subparagraphs: 13 NEW SUBPARAGRAPH . (4) For the school budget year 14 beginning July 1, 2027, resident pupils eligible to enroll in 15 kindergarten through grade twelve who attend a nonpublic school 16 for that school budget year shall be eligible to receive an 17 education savings account payment if the pupil’s household has 18 an annual income less than or equal to four hundred percent of 19 the most recently revised poverty income guidelines published 20 by the United States department of health and human services. 21 NEW SUBPARAGRAPH . (5) For the school budget year 22 beginning July 1, 2028, resident pupils eligible to enroll in 23 kindergarten through grade twelve who attend a nonpublic school 24 for that school budget year shall be eligible to receive an 25 education savings account payment if the pupil’s household has 26 an annual income less than or equal to three hundred percent of 27 the most recently revised poverty income guidelines published 28 by the United States department of health and human services. 29 Sec. 8. Section 257.11B, Code 2026, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 12. This section is repealed July 1, 2029. 32 Sec. 9. Section 422.7, subsection 43, Code 2026, is amended 33 by striking the subsection. 34 Sec. 10. EFFECTIVE DATE. The following take effect July 1, 35 -2- LSB 6087YH (5) 91 mb/md 2/ 4

H.F. 2737 2029: 1 1. The section of this Act amending section 256.9, 2 subsection 66. 3 2. The section of this Act amending section 257.10, 4 subsection 9, paragraph “c”, subparagraph (1). 5 3. The section of this Act amending section 257.10, 6 subsection 10, paragraph “c”, subparagraph (1). 7 4. The section of this Act amending section 257.10, 8 subsection 11, paragraph “c”, subparagraph (1). 9 5. The section of this Act amending section 257.10, 10 subsection 12, paragraph “c”, subparagraph (1). 11 6. The section of this Act amending section 422.7. 12 Sec. 11. APPLICABILITY. The following apply July 1, 2030, 13 for school budget years beginning on or after that date: 14 1. The section of this Act amending section 257.10, 15 subsection 9, paragraph “c”, subparagraph (1). 16 2. The section of this Act amending section 257.10, 17 subsection 10, paragraph “c”, subparagraph (1). 18 3. The section of this Act amending section 257.10, 19 subsection 11, paragraph “c”, subparagraph (1). 20 4. The section of this Act amending section 257.10, 21 subsection 12, paragraph “c”, subparagraph (1). 22 Sec. 12. APPLICABILITY. The following applies to tax years 23 beginning on or after January 1, 2030: 24 The section of this division of this Act amending section 25 422.7, subsection 43. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to eligibility for the education savings 30 account program and provides a future repeal date for the 31 education savings account program. 32 The bill provides that for the school budget year 33 beginning July 1, 2027, resident pupils eligible to enroll in 34 kindergarten through grade 12 attending a nonpublic school are 35 -3- LSB 6087YH (5) 91 mb/md 3/ 4

H.F. 2737 eligible to receive an education savings account payment if the 1 pupil’s household annual income is less than or equal to 400 2 percent of the most recently revised federal poverty income 3 guidelines. Then, for the school budget year beginning July 4 1, 2028, resident pupils eligible to enroll in kindergarten 5 through grade 12 attending a nonpublic school are eligible to 6 receive an education savings account payment if the pupil’s 7 household annual income is less than or equal to 300 percent of 8 the most recently revised federal poverty income guidelines. 9 The bill repeals the education savings account program 10 effective July 1, 2029. 11 The bill includes future corresponding changes to other 12 provisions of law relating to the education savings account 13 program and specifies applicability for such changes. 14 -4- LSB 6087YH (5) 91 mb/md 4/ 4