Senate File 2244 - Introduced SENATE FILE 2244 BY WEINER , DONAHUE , STAED , DREY , BLAKE , KNOX , TOWNSEND , ZIMMER , WINCKLER , QUIRMBACH , TRONE GARRIOTT , BENNETT , PETERSEN , DOTZLER , HARDMAN , and WAHLS A BILL FOR An Act relating to the education savings account program, 1 including the establishment and requirements of qualified 2 nonpublic schools. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6004XS (3) 91 mb/jh
S.F. 2244 Section 1. Section 256.9, Code 2026, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 80. Notify each school district of resident 3 students who have been approved to participate in the education 4 savings account program no later than the date on which the 5 parent or guardian of the student is notified of the student’s 6 approval to participate in the program. Notifications under 7 this subsection shall include the number of resident pupils 8 approved to participate and the ages of the resident pupils but 9 shall contain no other personal information relating to the 10 resident pupils. 11 NEW SUBSECTION . 81. Make available to the public and 12 submit to the general assembly a report relating to tuition 13 and mandatory fee schedules of qualified nonpublic schools in 14 section 257.11B, subsection 1, paragraph “0c” , subparagraph 15 (9). 16 NEW SUBSECTION . 82. Require third-party entities and 17 qualified firms of the education savings account program 18 to submit annual reports including the total amount of 19 education savings account funding spent by families on 20 educational materials, as defined in section 257.11B, 21 subsection 1, paragraph “b” , subparagraph (1), including a 22 separate identification of the amount spent on educational 23 materials sold directly by the reporting third-party entity 24 or qualified firm, the total amount of education savings 25 account funding spent by families on instructional services 26 outside of qualified nonpublic schools, and a list of all 27 claims submitted for reimbursement, including amounts approved 28 for reimbursement. The department shall annually compile 29 and provide such reports to the general assembly. Personal 30 information regarding a student in an annual report submitted 31 pursuant to this subsection shall be kept confidential as 32 required under the federal Family Educational Rights and 33 Privacy Act, 20 U.S.C. §1232g, and in the same manner as 34 personal information in student records maintained, created, 35 -1- LSB 6004XS (3) 91 mb/jh 1/ 7
S.F. 2244 collected, or assembled by or for a school corporation or 1 educational institution in accordance with section 22.7, 2 subsection 1. 3 NEW SUBSECTION . 83. Require third-party administrators 4 or vendors of the education savings account program to fully 5 cooperate with the department and the office of auditor of 6 state for performance audits of education savings account 7 expenditures, including providing access to student eligibility 8 verification, information necessary to evaluate compliance and 9 detect potential fraud, and vendor information. The board 10 shall require an annual independent audit, separate from the 11 financial audit required under section 257.11B, to verify 12 compliance with education savings account program requirements. 13 Such audit shall constitute a public record under chapter 22. 14 NEW SUBSECTION . 84. Ensure that any contract with 15 a third-party administrator or vendor related to the 16 education savings account program meets all of the following 17 requirements: 18 a. The contract is awarded through a competitive bidding 19 process. 20 b. Contract terms, including fees and data security 21 provisions, constitute a public record under chapter 22. 22 c. Fees must not exceed three percent of the total 23 funds administered on behalf of education savings account 24 participants and must not exceed direct educational costs. 25 d. Payments to vendors must be made in monthly or quarterly 26 installments. 27 Sec. 2. Section 257.11B, subsection 1, paragraph b, 28 subparagraph (1), Code 2026, is amended to read as follows: 29 (1) “Qualified educational expenses” includes tuition 30 and fees at a qualified nonpublic school, textbooks, fees 31 or payments for educational therapies, including tutoring 32 or cognitive skills training, curriculum fees, software, 33 and materials for a course of study for a specific subject 34 matter or grade level, tuition or fees for nonpublic online 35 -2- LSB 6004XS (3) 91 mb/jh 2/ 7
S.F. 2244 education programs, tuition for vocational and life skills 1 education approved by the department of education, education 2 materials and services for pupils with disabilities from an 3 accredited provider, including the cost of paraprofessionals 4 and assistants who are trained in accordance with state law, 5 standardized test fees, and advanced placement examinations or 6 examinations related to postsecondary education admission or 7 credentialing. 8 Sec. 3. Section 257.11B, subsection 1, Code 2026, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . 0c. “Qualified nonpublic school” means a 11 nonpublic school that complies with all of the following: 12 (1) The governing body of the nonpublic school adheres to 13 the accountability and transparency requirements applicable to 14 the boards of directors of school districts in the same manner 15 as the boards of directors of school districts. 16 (2) The nonpublic school adheres to the data reporting 17 requirements applicable to school districts in the same manner 18 as a school district. 19 (3) The nonpublic school adheres to the accreditation 20 standards applicable to school districts that are currently 21 accredited by the department of education, including standards 22 related to courses offered and taught by the nonpublic school, 23 in the same manner as a school district. 24 (4) The nonpublic school adheres to the teacher employment 25 and teacher licensing requirements applicable to school 26 districts in the same manner as a school district. 27 (5) The nonpublic school annually reports to the department 28 of education the number of residents who applied for admission 29 for purposes of participation in the education savings account 30 program and the number of resident students who were denied 31 admission. The report must include the reason for each 32 denial. Personal information regarding an applicant in a 33 report submitted pursuant to this subparagraph shall be kept 34 confidential as required under the federal Family Educational 35 -3- LSB 6004XS (3) 91 mb/jh 3/ 7
S.F. 2244 Rights and Privacy Act, 20 U.S.C. §1232g, and in the same 1 manner as personal information in student records maintained, 2 created, collected, or assembled by or for a school corporation 3 or educational institution in accordance with section 22.7, 4 subsection 1. 5 (6) The nonpublic school reports to the department of 6 education the number of students participating in the education 7 savings account program who withdraw from the nonpublic 8 school and reenter a public school during the school year. 9 The report must indicate whether the student’s return to a 10 public school was voluntary or the result of removal by the 11 nonpublic school. Personal information regarding a student in 12 a report submitted pursuant to this subparagraph shall be kept 13 confidential as required under the federal Family Educational 14 Rights and Privacy Act, 20 U.S.C. §1232g, and in the same 15 manner as personal information in student records maintained, 16 created, collected, or assembled by or for a school corporation 17 or educational institution in accordance with section 22.7, 18 subsection 1. 19 (7) The nonpublic school refunds education savings account 20 funds if a student participating in the education savings 21 account program withdraws from the school prior to the end of 22 the semester. The nonpublic school must report a student’s 23 withdrawal in a manner determined by the department of 24 education. The amount of the refund shall be prorated based 25 on the number of school days the student was enrolled in the 26 nonpublic school. The nonpublic school shall pay the amount 27 of the refund to the pupil’s district of residence or, if the 28 pupil has moved out of the state, shall remit the refund to the 29 department of education for deposit in the general fund of the 30 state. 31 (8) The nonpublic school does not increase tuition or 32 mandatory fees for a school year by a rate greater than the 33 state percent of growth rate applicable to school districts 34 for that school year. The tuition and mandatory fees charged 35 -4- LSB 6004XS (3) 91 mb/jh 4/ 7
S.F. 2244 by the nonpublic school to a student participating in the 1 education savings account program must not exceed one hundred 2 twenty-five percent of the state cost per pupil funding amount 3 for the applicable school year. 4 (9) The nonpublic school annually reports to the department 5 of education the tuition and mandatory fee schedules for each 6 grade level at each school that enrolls students participating 7 in the education savings account program. 8 (10) The nonpublic school assumes full responsibility 9 for providing and administering any transportation services, 10 instructional services, or materials managed by public schools 11 under chapter 285 for students enrolled in the nonpublic school 12 and participating in the education savings account program. 13 Sec. 4. NEW SECTION . 268.8 Independent evaluation of the 14 education savings account program. 15 For the school year beginning July 1, 2026, and every five 16 years thereafter, the university shall conduct an independent 17 evaluation of the education savings account program in section 18 257.11B. The evaluation shall include academic outcomes and 19 demographic characteristics of participating students, patterns 20 of persistence and withdrawals, and participation trends for 21 students who have never attended a public school. 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 relates to the education savings account (ESA) 26 program, including the establishment and requirements of 27 qualified nonpublic schools. The education savings account 28 program is a program that provides funds to pupils who attend 29 nonpublic schools to pay for qualified educational expenses, 30 including but not limited to tuition, tutoring or cognitive 31 skill training fees, educational therapy costs, software 32 expenses, and expenses related to course materials. 33 The bill establishes a category of qualified nonpublic 34 schools that must comply with public school standards of 35 -5- LSB 6004XS (3) 91 mb/jh 5/ 7
S.F. 2244 accountability and transparency, data reporting, accreditation 1 standards, and teacher employment and licensing requirements. 2 The bill amends the definition of “qualified education 3 expense” to provide that only tuition and fees at a qualified 4 nonpublic school are qualified educational expenses for 5 purposes of the ESA program. 6 The bill requires qualified nonpublic schools to report 7 to the department of education the number of residents who 8 applied for admission for purposes of participation in the ESA 9 program and the number of resident students who were denied 10 admission, including the reason for each denial; to report to 11 the department the number of students participating in the ESA 12 program who withdraw from the nonpublic school and reenter 13 a public school during the school year, indicating whether 14 the student’s return to a public school was voluntary; to 15 refund ESA funds if a student participating in the ESA program 16 withdraws from the school prior to the end of the semester; to 17 not increase tuition or mandatory fees for a school year by a 18 rate greater than the state percent of growth rate applicable 19 to school districts for that school year; to annually report to 20 the department the tuition and mandatory fee schedules for each 21 grade level at each school that enrolls students participating 22 in the ESA program; and to assume full responsibility for 23 providing and administering any transportation services, 24 instructional services, or materials managed by public schools 25 for nonpublic school ESA participants. 26 The bill requires the department of education to notify each 27 school district of resident students who have been approved 28 to participate in the ESA program no later than the date on 29 which the parent or guardian of the student is notified of 30 the student’s approval to participate in the program; to make 31 available to the public and submit to the general assembly 32 a report relating to tuition and mandatory fee schedules of 33 qualified nonpublic schools; to require third-party entities 34 and qualified firms of the ESA program to submit annual 35 -6- LSB 6004XS (3) 91 mb/jh 6/ 7
S.F. 2244 reports detailing ESA expenditures; to require third-party 1 administrators or vendors of the ESA program to fully cooperate 2 with the department and the office of auditor of state for 3 performance audits of ESA expenditures; and ensure that any 4 contract with a third-party administrator or vendor related to 5 the ESA program meets the requirements in the bill. 6 Lastly, the bill requires the university of northern Iowa to 7 conduct an independent evaluation of the ESA program every five 8 years. 9 -7- LSB 6004XS (3) 91 mb/jh 7/ 7