HF 445 (LSB 1837YH (8) 91)

HOUSE FILE 445

BY  FETT

A BILL FOR

An Act modifying provisions related to application periods for the education savings account program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.11B, subsections 3 and 4, Code 2025, are amended to read as follows:
   3.  a.  (1)  On or after January 1, but on or before June 30, preceding the school year for which the education savings account payment is requested, the parent or guardian of an eligible pupil may request an education savings account payment by submitting an application to the department of education.
   (2)  On or after December 1, but on or before December 20, preceding the semester for which the education savings account payment is requested, the parent or guardian of an eligible pupil may request an education savings account payment by submitting an application to the department of education.
   b.  Within thirty days following submission of an application, the department of education or third-party entity shall notify the parent or guardian of each pupil approved for the following school year or semester and specify the amount of the education savings account payment for the pupil, if known at the time of the notice. As soon as practical following the processing of all applications, the department of education or third-party entity shall determine the number of pupils in each school district approved for the school budget year and provide such information to the department of management.
   c.  Education savings account payments shall only be approved for one school year or one semester, as applicable, and applications must be submitted annually for payments in subsequent school years.
   4.  Each education savings account payment shall be equal to the regular program state cost per pupil for the same school budget year; provided, however, that an education savings account payment shall be equal to fifty percent of the regular program state cost per pupil for the same school budget year if the pupil’s parent or guardian submitted an application under subsection 3, paragraph “a”, subparagraph (2).
    Sec. 2.  Section 257.11B, subsection 6, paragraph a, Code 2025, is amended to read as follows:
   a.  For each pupil approved for an education savings account payment, the department of education or third-party entity shall establish an individual account for that pupil in the education savings account fund. The If the pupil’s parent or guardian submitted an application under subsection 3, paragraph “a”, subparagraph (1), the amount of the pupil’s education savings account payment shall be deposited into the pupil’s individual account on July 15 or thirty days following submission of the application, whichever is later, and such amount shall be immediately available for the payment of qualified educational expenses incurred by the parent or guardian for the pupil during that fiscal year using a payment method authorized under subsection 5.  If the pupil’s parent or guardian submitted an application under subsection 3, paragraph “a”, subparagraph (2), the amount of the pupil’s education savings account payment shall be deposited into the pupil’s individual account within thirty days following submission of the application, and such amount shall be immediately available for the payment of qualified educational expenses incurred by the parent or guardian for the pupil during that fiscal year using a payment method authorized under subsection 5.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill modifies provisions related to application periods for the education savings account program.
   The education savings account program is a program that provides funds to pupils who attend nonpublic schools to pay for qualified educational expenses, including but not limited to tuition, tutoring or cognitive skill training fees, educational therapy costs, software expenses, and expenses related to course materials. Under current law, the parent or guardian of a pupil is required to submit an application for payment under the education savings account program to the department of education on or after January 1, but on or before June 30, preceding the school year for which the education savings account payment is requested. The bill allows the parent or guardian of a pupil to submit such an application on or after December 1, but on or before December 20, preceding the semester for which the education savings account payment is requested. Additionally, under current law each education savings account payment is equal to the regular program state cost per pupil for the same school budget year. The bill provides that, if the parent or guardian of a pupil submitted such an application on or after December 1, but on or before December 20, preceding the semester for which the education savings account payment is requested, the education savings account payment for such pupil is equal to 50 percent of the regular program state cost per pupil for the same school budget year. The bill makes conforming changes.