Bill Text: IA HF2223 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act establishing the Iowa hope scholarship program and making appropriations.
Spectrum: Partisan Bill (Republican 11-0)
Status: (Introduced - Dead) 2022-02-02 - Introduced, referred to Education. H.J. 169. [HF2223 Detail]
Download: Iowa-2021-HF2223-Introduced.html
House
File
2223
-
Introduced
HOUSE
FILE
2223
BY
WHEELER
,
STONE
,
CISNEROS
,
FISHER
,
SALMON
,
WESTRICH
,
BODEN
,
HOLT
,
WILLS
,
BRADLEY
,
and
SHIPLEY
A
BILL
FOR
An
Act
establishing
the
Iowa
hope
scholarship
program
and
1
making
appropriations.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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5479HH
(18)
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H.F.
2223
DIVISION
I
1
SHORT
TITLE
2
Section
1.
SHORT
TITLE.
This
Act
shall
be
known
and
may
be
3
cited
as
the
“Iowa
Hope
Scholarship
Program
to
Empower
Parents
4
and
Expand
Choice
in
Children’s
Education
by
Funding
Students
5
and
Not
Systems
Act”.
6
DIVISION
II
7
IOWA
HOPE
SCHOLARSHIP
PROGRAM
8
Sec.
2.
NEW
SECTION
.
257A.1
Program
title.
9
An
Iowa
hope
scholarship
program
is
established
for
the
10
school
years
commencing
on
or
after
July
1,
2023.
11
Sec.
3.
NEW
SECTION
.
257A.2
Definitions.
12
As
used
in
this
chapter,
unless
the
context
otherwise
13
requires:
14
1.
“Base
year”
means
the
school
year
prior
to
the
school
15
year
for
which
the
scholarship
is
received.
16
2.
“Curriculum”
means
a
complete
course
of
study
for
17
a
particular
content
area
or
grade
level,
including
any
18
supplemental
materials
required
by
the
curriculum.
19
3.
“Department”
means
the
department
of
management.
20
4.
“District
of
residence”
means
the
public
school
district
21
in
which
the
participating
student
resides.
22
5.
“Education
service
provider”
means
a
person,
school,
or
23
organization
that
receives
payments
to
provide
educational
24
goods
and
services
to
students.
25
6.
“Eligible
student”
means
a
resident
of
this
state
who
is
26
any
of
the
following:
27
a.
A
child
who
is
eligible
to
enroll
in
preschool
through
28
grade
twelve
and
who
is
not
enrolled
in
an
accredited
nonpublic
29
school
in
the
base
year.
30
b.
(1)
For
the
school
year
beginning
July
1,
2023,
a
child
31
who
is
eligible
to
enroll
in
grades
eleven
and
twelve
and
who
32
is
enrolled
in
an
accredited
nonpublic
school
for
the
base
33
year.
34
(2)
For
the
school
year
beginning
July
1,
2024,
a
child
who
35
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is
eligible
to
enroll
in
grades
nine
through
twelve
and
who
is
1
enrolled
in
an
accredited
nonpublic
school
for
the
base
year.
2
(3)
For
the
school
year
beginning
July
1,
2025,
a
child
who
3
is
eligible
to
enroll
in
grades
seven
through
twelve
and
who
is
4
enrolled
in
an
accredited
nonpublic
school
for
the
base
year.
5
(4)
For
the
school
year
beginning
July
1,
2026,
a
child
who
6
is
eligible
to
enroll
in
grades
five
through
twelve
and
who
is
7
enrolled
in
an
accredited
nonpublic
school
for
the
base
year.
8
(5)
For
the
school
year
beginning
July
1,
2027,
a
child
who
9
is
eligible
to
enroll
in
grades
three
through
twelve
and
who
is
10
enrolled
in
an
accredited
nonpublic
school
for
the
base
year.
11
(6)
For
the
school
year
beginning
July
1,
2028,
a
child
who
12
is
eligible
to
enroll
in
grades
one
through
twelve
and
who
is
13
enrolled
in
an
accredited
nonpublic
school
for
the
base
year.
14
(7)
For
school
years
beginning
on
or
after
July
1,
2029,
15
a
child
who
is
eligible
to
enroll
in
preschool
through
grade
16
twelve
and
who
is
enrolled
in
an
accredited
nonpublic
school
or
17
private
preschool
for
the
base
year.
18
7.
“Parent”
means
a
biological
parent,
legal
guardian,
19
custodian,
or
other
person
with
legal
authority
to
act
on
20
behalf
of
an
eligible
student
or
participating
student.
21
8.
“Participating
education
service
provider”
means
an
22
education
service
provider
that
satisfies
the
requirements
of
23
section
257A.10.
24
9.
“Participating
student”
means
a
student
who
receives
a
25
scholarship
pursuant
to
this
chapter.
26
10.
“Resident”
means
the
same
as
defined
in
section
282.1,
27
subsection
2.
28
11.
“Scholarship”
means
the
amount
of
funds
awarded
and
29
allocated
to
the
parents
or
guardian
of
a
participating
student
30
in
order
to
pay
for
qualifying
education
expenses
to
educate
31
the
student
pursuant
to
the
requirements
of
this
chapter.
32
Sec.
4.
NEW
SECTION
.
257A.3
Iowa
hope
scholarship
33
administration.
34
The
Iowa
hope
scholarship
program
shall
be
administered
by
35
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the
department.
1
Sec.
5.
NEW
SECTION
.
257A.4
Powers
of
the
department.
2
1.
The
department
is
authorized
to
take
any
action
3
necessary
to
effectuate
the
provisions
of
this
chapter
and
to
4
successfully
administer
the
hope
scholarship
program,
including
5
but
not
limited
to
the
following:
6
a.
Adopting
rules
under
chapter
17A
for
the
requirements,
7
policies,
procedures,
and
guidelines
to
implement
and
manage
8
the
program.
9
b.
Executing
contracts
and
other
instruments
for
necessary
10
goods
and
services.
11
c.
Employing
necessary
personnel
and
engaging
the
services
12
of
private
consultants,
actuaries,
auditors,
legal
counsel,
13
managers,
trustees,
and
any
other
contractors
or
professionals
14
needed
for
rendering
professional
and
technical
assistance
and
15
advice.
16
d.
Implementing
the
program
through
the
use
of
financial
17
organizations
as
account
depositories
and
managers.
18
e.
Determining
whether
an
expenditure
of
scholarship
funds
19
is
or
was
a
qualifying
expense
to
educate
a
participating
20
student.
21
f.
Establishing
the
method
by
which
moneys
in
the
22
hope
scholarship
expense
fund
shall
be
allocated
to
pay
23
for
administrative
costs
and
assess,
collect,
and
expend
24
administrative
fees,
charges,
and
penalties.
25
g.
Authorizing
the
assessment,
collection,
and
retention
of
26
fees
and
charges
against
the
amounts
paid
into
and
the
earnings
27
on
the
hope
scholarship
funds
by
a
financial
institution,
28
investment
manager,
or
fund
manager.
29
h.
Investing
and
reinvesting
any
of
the
funds
and
accounts
30
under
the
department’s
control
with
a
financial
institution,
an
31
investment
manager,
or
a
fund
manager.
32
i.
Soliciting
and
accepting
gifts,
including
bequests
33
and
other
testamentary
gifts
made
by
will,
trust,
or
other
34
disposition;
grants;
loans;
aid;
and
property,
real
or
personal
35
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of
any
nature
and
from
any
source,
or
to
participate
in
any
1
other
way
in
any
federal,
state,
or
local
governmental
programs
2
in
carrying
out
the
purposes
of
this
chapter.
The
department
3
shall
use
the
property
received
to
effectuate
the
desires
of
4
the
donor,
and
shall
convert
the
property
received
into
cash
5
for
deposit
in
the
hope
scholarship
fund
within
one
hundred
6
eighty
days
of
receipt.
7
Sec.
6.
NEW
SECTION
.
257A.5
Award
of
hope
scholarships.
8
1.
The
hope
scholarship
program
is
established
to
provide
9
the
option
for
parents
to
better
meet
the
individual
education
10
needs
of
their
eligible
student.
11
2.
The
program
shall
be
available
to
receive
applications
12
for
the
school
year
beginning
July
1,
2023,
no
later
than
13
October
15,
2022.
14
3.
The
department
shall
create
a
standard
application
form
15
that
a
parent
may
submit
to
establish
the
student’s
eligibility
16
for
the
award
of
a
scholarship,
to
be
placed
in
the
student’s
17
education
savings
account
to
be
used
for
qualifying
expenses
18
on
behalf
of
the
participating
student.
Information
about
19
scholarship
funds
and
the
application
process
shall
be
made
20
available
on
the
department’s
internet
site.
21
4.
a.
The
department
shall
issue
a
decision
letter
to
22
eligible
students
within
forty-five
days
of
receipt
of
a
23
completed
application
and
all
required
documentation.
24
b.
The
department
shall
approve
an
application
for
a
25
scholarship
if
the
parent
submits
an
application
for
a
26
scholarship
in
accordance
with
the
rules
adopted
by
the
27
department
that
includes
an
agreement
with
the
department,
28
promising
to
provide
an
education
for
the
eligible
recipient
29
through
enrollment
in
an
accredited
nonpublic
school
or
30
instruction
that
meets
the
requirements
of
chapter
299A.
31
Sec.
7.
NEW
SECTION
.
257A.6
Funding
of
hope
scholarships
32
——
program
and
expense
funds.
33
1.
A
hope
scholarship
program
fund
is
created
as
a
separate
34
and
distinct
fund
in
the
state
treasury
under
the
control
of
35
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the
department.
Moneys
in
the
fund
include
revenues
credited
1
to
the
fund,
appropriations
made
to
the
fund,
and
other
moneys
2
deposited
into
the
fund.
Notwithstanding
section
12C.7,
3
subsection
2,
all
interest
and
earnings
and
other
returns
4
derived
from
the
deposit
and
investment
of
moneys
in
the
hope
5
scholarship
fund
shall
be
credited
to
the
fund.
6
2.
For
each
fiscal
year
beginning
on
or
after
July
1,
2023,
7
there
is
appropriated
from
the
general
fund
of
the
state
to
8
the
hope
scholarship
fund
an
amount
necessary
to
pay
all
hope
9
scholarships
approved
for
that
fiscal
year
and
the
amount
10
necessary
to
administer
the
program
and
subject
to
transfer
11
under
subsection
6.
There
is
appropriated
annually
all
moneys
12
in
the
hope
scholarship
fund
to
the
department
for
purposes
of
13
providing
scholarships
under
this
chapter.
14
3.
Notwithstanding
section
8.33,
any
moneys
remaining
in
15
the
hope
scholarship
fund
at
the
end
of
a
fiscal
year
shall
not
16
revert
to
any
other
fund
but
shall
remain
in
the
fund
for
use
as
17
provided
in
this
chapter
for
the
following
fiscal
year.
18
4.
Following
approval
of
the
application,
the
department
19
shall
make
available
to
each
participating
student
a
20
scholarship
in
an
amount
equal
to
the
sum
of
all
the
following
21
for
the
same
school
budget
year:
22
a.
The
product
of
the
student’s
weighted
enrollment
that
23
would
otherwise
be
assigned
to
the
student
under
chapter
257
24
if
the
student
was
enrolled
in
the
student’s
district
of
25
residence
multiplied
by
the
difference
between
eighty-eight
and
26
four-tenths
percent
of
the
regular
program
state
cost
per
pupil
27
and
the
statewide
average
foundation
property
tax
per
pupil.
28
b.
The
total
teacher
salary
supplement
district
cost
per
29
pupil
for
the
student’s
district
of
residence.
30
c.
The
total
professional
development
supplement
district
31
cost
per
pupil
for
the
student’s
district
of
residence.
32
d.
The
total
early
intervention
supplement
district
cost
per
33
pupil
for
the
student’s
district
of
residence.
34
e.
The
total
area
education
agency
teacher
salary
supplement
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district
cost
per
pupil
for
the
student’s
district
of
1
residence.
2
f.
The
total
area
education
agency
professional
development
3
supplement
district
cost
per
pupil
for
the
student’s
district
4
of
residence.
5
g.
The
total
teacher
leadership
supplement
district
cost
per
6
pupil
for
the
student’s
district
of
residence.
7
5.
The
amount
of
the
scholarship
to
a
participating
student
8
who
is
awarded
a
hope
scholarship
for
less
than
a
full
school
9
year
shall
be
prorated
based
on
the
portion
of
the
school
year
10
the
eligible
recipient
is
awarded
the
scholarship.
11
6.
A
hope
scholarship
program
expense
fund
is
created
12
as
a
separate
and
distinct
fund
in
the
state
treasury
under
13
the
control
of
the
department.
Moneys
in
the
fund
include
14
transfers
made
pursuant
to
this
subsection
or
other
moneys
15
received
by
the
department
for
the
hope
scholarship
program
16
expense
fund.
Notwithstanding
sections
12C.7,
subsection
2,
17
all
interest
or
earnings
derived
from
the
deposit
of
moneys
in
18
the
hope
scholarship
program
expense
fund
shall
be
credited
to
19
the
fund.
An
amount
not
to
exceed
five
percent
of
the
annual
20
appropriation
to
the
hope
scholarship
program
fund
shall
be
21
transferred
to
the
hope
scholarship
program
expense
fund
to
22
cover
the
annual
administrative
costs
of
the
hope
scholarship
23
program
and
the
cost
of
surety
bonds
for
education
service
24
providers
receiving
more
than
one
hundred
thousand
dollars
25
annually
in
hope
scholarship
funds.
26
7.
The
deposit
of
hope
scholarship
funds
into
a
27
participating
student’s
account
shall
be
subject
to
the
28
execution
of
the
parental
agreement.
Any
funds
remaining
in
a
29
hope
scholarship
account
at
the
end
of
the
fiscal
year
may
be
30
carried
over
to
the
next
fiscal
year
upon
successful
renewal
31
of
the
account.
32
8.
Funds
deposited
in
a
participating
student’s
hope
33
scholarship
account
do
not
constitute
taxable
income
to
the
34
parent
or
the
participating
student.
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9.
The
department
shall
continue
to
make
deposits
into
a
1
participating
student’s
hope
scholarship
account
unless
any
of
2
the
following
conditions
have
occurred:
3
a.
A
parent
of
a
participating
student
fails
to
renew
a
4
hope
scholarship
account
or
withdraws
from
the
hope
scholarship
5
program.
6
b.
The
department
determines
that
the
student
is
no
longer
7
eligible
for
a
hope
scholarship.
8
c.
The
department
suspends
or
revokes
participation
in
9
the
hope
scholarship
program
for
failure
to
comply
with
the
10
requirements
of
this
chapter.
11
d.
The
participating
student
successfully
completes
a
12
secondary
education
program.
13
e.
The
participating
student
reaches
twenty-one
years
of
14
age.
15
10.
If
any
of
the
conditions
in
subsection
9
occur,
the
16
department
shall
notify
the
parent
that
the
participating
17
student’s
account
will
be
closed
in
forty-five
calendar
days.
18
If
a
parent
fails
to
adequately
address
the
condition
or
19
conditions
upon
which
closure
is
based
or
does
not
respond
20
within
thirty
calendar
days
of
receipt
of
notice,
the
21
department
shall
close
the
account
and
any
remaining
moneys
22
shall
be
returned
to
the
general
fund
of
the
state.
23
11.
Hope
scholarship
funds
may
only
be
used
for
educational
24
purposes
in
accordance
with
this
subsection.
Parents
of
a
25
participating
student
shall
agree
to
use
the
funds
deposited
in
26
their
student’s
hope
scholarship
account
only
for
the
following
27
qualifying
expenses
to
educate
the
student:
28
a.
Services
provided
by
a
public
school
district,
including
29
tuition
and
individual
classes
and
extracurricular
activities
30
and
programs.
31
b.
Tuition
and
fees
at
a
participating
education
service
32
provider.
33
c.
Tutoring
services
provided
by
an
individual
or
a
tutoring
34
facility,
if
such
tutoring
services
are
not
provided
by
a
35
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member
of
the
participating
student’s
immediate
family.
1
d.
Fees
for
nationally
standardized
assessments,
advanced
2
placement
examinations,
any
examinations
related
to
college
3
or
university
admission,
and
tuition
or
fees
for
preparatory
4
courses
for
such
exams.
5
e.
Tuition
and
fees
for
programs
of
study
or
the
curriculum
6
of
courses
that
lead
to
an
industry-recognized
credential
that
7
satisfies
a
workforce
need.
8
f.
Tuition
and
fees
for
accredited
nonpublic
online
learning
9
programs.
10
g.
Tuition
and
fees
for
alternative
education
programs
11
that
meet
standards
similar
to
alternative
options
education
12
programs
under
section
280.19A.
13
h.
Fees
for
education
programs
and
services
otherwise
14
allowed
under
this
subsection
that
meet
outside
of
the
normal
15
school
day
or
outside
the
academic
school
year.
16
i.
Educational
services
and
therapies,
including
but
not
17
limited
to
occupational,
behavioral,
physical,
speech-language,
18
and
audiology
therapies.
19
j.
Any
other
qualified
expenses
as
approved
by
the
20
department.
21
12.
This
chapter
does
not
prohibit
a
student
from
receiving
22
a
tuition
grant
from
an
accredited
nonpublic
school
or
school
23
tuition
organization
or
from
receiving
any
other
form
of
24
financial
aid.
25
13.
Hope
scholarship
funds
shall
not
be
refunded,
rebated,
26
or
shared
with
a
parent
or
participating
student
in
any
manner
27
by
an
education
service
provider.
Any
refund
or
rebate
for
28
goods
or
services
purchased
with
hope
scholarship
funds
shall
29
be
credited
directly
to
the
participating
student’s
hope
30
scholarship
account.
31
14.
This
chapter
does
not
prohibit
the
parents
of
a
32
participating
student
from
making
payments
for
the
costs
of
33
educational
goods
and
services
not
covered
by
the
funds
in
34
the
qualifying
student’s
hope
scholarship
account.
However,
35
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personal
deposits
into
an
account
are
not
permitted.
1
Sec.
8.
NEW
SECTION
.
257A.7
Renewal
of
hope
scholarship
2
accounts.
3
1.
A
parent
must
renew
a
participating
student’s
hope
4
scholarship
on
an
annual
basis.
5
2.
Notwithstanding
any
changes
in
eligibility,
a
student
6
who
has
previously
qualified
for
a
hope
scholarship
remains
7
eligible
to
apply
for
renewal
until
one
of
the
disqualifying
8
conditions
set
forth
in
section
257A.6,
subsection
9,
occurs
9
and
provided
that
the
department
verifies
the
following
10
information
by
July
1
of
every
year:
11
a.
A
list
of
all
active
hope
scholarship
accounts.
12
b.
The
district
of
residence
of
each
participating
student.
13
c.
For
each
participating
student
who
attends
an
accredited
14
nonpublic
school
that
is
a
participating
education
service
15
provider,
annual
confirmation
of
the
participating
student’s
16
continued
attendance
at
the
nonpublic
school.
17
d.
For
each
participating
student
who
is
receiving
18
private
instruction,
that
the
student
has
complied
with
all
19
requirements
of
chapter
299A.
20
3.
If
a
parent
fails
to
renew
a
student’s
hope
scholarship,
21
the
department
shall
notify
the
parent
that
the
student’s
22
account
will
be
closed
in
forty-five
calendar
days.
If
a
23
parent
chooses
not
to
renew
or
does
not
respond
within
thirty
24
calendar
days
of
receipt
of
notice,
the
department
shall
close
25
the
account
and
any
remaining
moneys
shall
be
deposited
in
the
26
general
fund
of
the
state.
27
4.
If
an
eligible
student
decides
to
return
to
the
hope
28
scholarship
program
after
failing
to
renew,
the
eligible
29
student
must
reapply.
The
department
shall
adopt
rules
to
30
provide
the
least
disruptive
process
for
students
who
desire
to
31
stop
receiving
hope
scholarship
payments
and
return
full-time
32
to
a
public
school.
33
5.
The
department
shall
adopt
rules
for
participating
34
students
who
want
to
continue
to
receive
services
provided
by
35
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a
public
school
or
district,
including
individual
classes
and
1
extracurricular
programs.
The
department
shall
ensure
that
2
any
public
school
or
school
district
providing
such
services
3
receives
the
appropriate
pro
rata
share
of
a
participating
4
student’s
hope
scholarship
funds
based
on
the
percentage
of
5
total
instruction
provided
to
the
student
by
the
public
school
6
or
school
district.
Public
school
districts
may
charge
tuition
7
to
hope
scholarship
students
who
enroll
for
services
in
a
8
public
school.
Participating
students
who
enroll
for
services
9
part-time
in
public
schools
shall
not
be
included
in
the
10
enrollment
of
the
school
district
for
funding
purposes
under
11
chapter
257.
This
chapter
shall
not
be
construed
to
prohibit
12
a
participating
student
from
using
the
funds
deposited
in
the
13
student’s
account
on
both
services
provided
by
a
public
school
14
or
district
and
other
qualifying
expenses.
15
Sec.
9.
NEW
SECTION
.
257A.8
Administration
of
hope
16
scholarship
program
and
accounts.
17
1.
In
addition
to
the
duties
under
this
chapter,
the
18
department
shall
do
all
of
the
following:
19
a.
Maintain
an
updated
list
of
participating
education
20
service
providers
and
ensure
that
the
list
is
publicly
21
available.
22
b.
Provide
parents
with
a
written
explanation
of
the
23
allowable
uses
of
hope
scholarship
funds,
the
responsibilities
24
of
parents,
the
duties
of
the
department,
and
the
role
of
25
any
private
financial
management
firms
or
other
private
26
organizations
that
the
department
may
contract
with
to
27
administer
the
hope
scholarship
program.
28
c.
Ensure
that
parents
of
students
with
a
disability
29
receive
notice
that
participation
in
the
hope
scholarship
30
program
is
a
parental
placement
under
20
U.S.C.
§1412
of
the
31
federal
Individuals
with
Disabilities
Education
Act,
including
32
an
explanation
of
the
rights
that
parentally
placed
students
33
possess
under
the
federal
law
and
any
applicable
state
laws
and
34
regulations.
35
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2.
The
department
may
contract
with
private
organizations
1
to
administer
the
hope
scholarship
program,
including
but
2
not
limited
to
private
financial
management
firms
to
manage
3
scholarship
accounts.
4
3.
The
department
shall
implement
or
contract
with
a
5
private
organization
to
implement
a
commercially
viable,
6
cost-effective,
and
parent-friendly
system
for
payment
for
7
services
from
hope
scholarship
accounts
to
participating
8
education
service
providers,
including
but
not
limited
to
9
the
use
of
debit
cards
or
other
electronic
fund
transfers.
10
However,
a
hope
scholarship
account
shall
not
be
used
for
debit
11
card
or
electronic
payment
fees.
12
4.
The
department
shall
also
implement
a
commercially
13
viable,
cost-effective,
and
parent-friendly
system
for
publicly
14
rating,
reviewing,
and
sharing
information
about
participating
15
education
service
providers.
If
feasible,
such
a
system
shall
16
be
integrated
with
the
system
under
subsection
3.
17
5.
If
a
participating
education
service
provider
requires
18
an
application
fee
or
a
partial
payment
of
tuition
or
fees
19
prior
to
the
start
of
the
academic
year
to
reserve
space
for
a
20
participating
student,
such
fee
or
partial
payment
may
be
paid
21
prior
to
the
start
of
the
school
year
in
which
the
scholarship
22
is
awarded,
and
deducted
in
an
equitable
manner
from
subsequent
23
scholarship
deposits
to
ensure
adequate
funds
remain
available
24
throughout
the
school
year;
but
if
the
student
decides
not
to
25
use
the
education
service
provider,
the
application
fee
or
26
partial
reservation
payment
must
be
returned
to
the
department
27
by
such
education
service
provider
and
credited
to
the
28
student’s
account.
29
6.
a.
The
department
may
accept
gifts
and
grants
from
any
30
source
to
cover
administrative
costs
to
be
deposited
in
the
31
hope
scholarship
program
expense
fund
and
for
costs
to
inform
32
the
public
about
the
program.
33
b.
The
department
may
accept
gifts
and
grants
from
any
34
source
to
cover
scholarship
costs
to
be
deposited
in
the
hope
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scholarship
program
fund.
1
7.
The
department
shall
adopt
all
necessary
rules
to
meet
2
timelines
set
forth
in
this
chapter,
including
rules
for
all
3
of
the
following:
4
a.
Establishing
or
contracting
for
the
establishment
of
a
5
fraud
reporting
system.
6
b.
Procedures
for
refunding
payments
from
education
service
7
providers
back
to
scholarship
accounts.
8
c.
Procedures
for
entering
into
reciprocal
agreements
with
9
other
state
education
savings
account
agencies
or
entities,
10
whether
public
or
private,
to
recognize
and
allow
education
11
service
providers
approved
in
other
states
to
receive
payments
12
from
hope
scholarship
accounts
under
this
chapter.
13
8.
The
rules
and
policies
adopted
by
the
department
should
14
avoid
excessive
bureaucracy
and
overly
prescriptive
mandates
15
and
instead
shall
focus
on
encouraging
participation
in
the
16
program
and
encouraging
education
service
providers
to
provide
17
parents
and
hope
scholarship
students
with
a
broad
array
of
18
educational
options.
19
Sec.
10.
NEW
SECTION
.
257A.9
Auditing
of
program
——
20
suspension
of
accounts
and
providers.
21
1.
The
department
shall
adopt
rules
for
the
auditing
of
22
individual
hope
scholarship
accounts
and
shall
conduct
or
23
contract
for
the
random
auditing
of
individual
hope
scholarship
24
accounts
as
needed
to
ensure
compliance
with
the
requirements
25
of
this
chapter
and
rules
of
the
program.
26
2.
As
part
of
the
auditing
process,
the
department
may
27
remove
a
parent
or
eligible
recipient
from
the
program
and
28
close
an
account
for
failure
to
comply
with
the
terms
of
the
29
parental
agreement,
failure
to
comply
with
the
applicable
laws,
30
failure
of
the
student
to
remain
eligible,
or
intentional
31
and
fraudulent
misuse
of
scholarship
funds.
The
department
32
rules
shall
create
procedures
to
ensure
that
a
fair
process
33
exists
to
determine
the
removal
of
a
parent
or
student
from
the
34
program
and
a
parent
may
appeal
a
decision
of
the
department
35
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as
provided
under
chapter
17A.
1
3.
a.
The
department
may
conduct
or
contract
for
the
audit
2
of
education
service
providers
accepting
payments
from
hope
3
scholarship
accounts
if
the
department
determines
that
the
4
education
service
provider
has
done
any
of
the
following:
5
(1)
Intentionally
and
substantially
misrepresented
6
information
or
failed
to
refund
any
overpayments
in
a
timely
7
manner.
8
(2)
Routinely
failed
to
provide
students
with
promised
9
educational
goods
or
services.
10
b.
If
the
department
determines
that
an
education
service
11
provider
has
intentionally
and
substantially
misused
hope
12
scholarship
funds,
the
department
may
bar
the
education
service
13
provider
from
continuing
to
receive
payments.
The
department
14
shall
create
procedures
to
ensure
that
a
fair
process
exists
15
to
determine
whether
an
education
service
provider
may
be
16
barred
from
receiving
payment
from
scholarship
accounts
and
17
an
education
service
provider
may
appeal
a
decision
to
bar
18
the
education
service
provider
from
receiving
payments
to
the
19
department.
20
c.
If
the
department
bars
an
education
service
provider
21
from
receiving
payments
from
hope
scholarship
accounts,
the
22
department
shall
notify
parents
and
students
of
the
decision
as
23
quickly
as
practicable.
24
d.
If
the
department
obtains
evidence
of
potential
25
fraudulent
use
of
hope
scholarship
funds,
the
department
26
may
refer
suspected
cases
to
the
attorney
general
for
27
purposes
of
investigation,
collection,
and
potential
criminal
28
investigation.
29
Sec.
11.
NEW
SECTION
.
257A.10
Requirements
for
and
rights
30
of
participating
education
service
providers.
31
1.
To
be
a
participating
education
service
provider
and
be
32
eligible
to
accept
payments
from
a
hope
scholarship
account,
an
33
education
service
provider
must
do
all
of
the
following:
34
a.
Submit
notice
to
the
department
that
the
provider
wishes
35
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to
participate
in
the
hope
scholarship
program.
1
b.
Provide
parents
with
a
receipt
for
all
qualifying
2
expenses
for
the
participating
student.
3
c.
Agree
not
to
refund,
rebate,
or
share
scholarship
funds
4
with
parents
or
students
in
any
manner,
except
that
funds
may
5
be
remitted
or
refunded
to
a
scholarship
account
in
accordance
6
with
section
257A.6,
subsection
13.
7
d.
Agree
to
submit
any
employee
who
will
have
contact
with
8
participating
students
to
a
criminal
background
check.
9
e.
In
the
case
of
a
participating
education
service
provider
10
that
is
an
accredited
nonpublic
school,
provide
notice
of
11
enrollment
annually
to
the
district
of
residence
of
any
student
12
for
which
a
student’s
tuition
to
such
school
is
being
paid
13
through
the
hope
scholarship
program.
14
2.
This
chapter
shall
not
be
construed
to
limit
the
15
independence
or
autonomy
of
an
education
service
provider
or
16
make
the
actions
of
an
education
service
provider
the
actions
17
of
any
governmental
entity.
18
3.
Education
service
providers
shall
be
given
maximum
19
freedom
to
provide
for
the
educational
needs
of
participating
20
students
without
governmental
control.
21
4.
A
participating
education
service
provider
is
not
22
required
to
alter
its
creed,
practices,
admission
policy,
23
hiring
policy,
or
curriculum
in
order
to
accept
participating
24
students.
25
5.
This
chapter
does
not
expand
the
regulatory
authority
26
of
the
state,
its
officers,
or
any
school
district
to
impose
27
any
additional
regulation
of
education
service
providers
beyond
28
those
necessary
to
enforce
the
requirements
of
the
program.
29
Sec.
12.
NEW
SECTION
.
257A.11
Responsibilities
of
districts
30
of
residence.
31
The
district
of
residence
in
which
a
participating
student
32
was
last
enrolled,
if
applicable,
shall
provide
an
education
33
service
provider
that
has
enrolled
the
student
with
a
complete
34
copy
of
the
student’s
school
records,
while
complying
with
the
35
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federal
Family
Educational
Rights
and
Privacy
Act
of
1974,
20
1
U.S.C.
§1232g.
2
Sec.
13.
NEW
SECTION
.
257A.12
Legal
proceedings
——
3
severability.
4
1.
No
liability
arises
on
the
part
of
the
department
or
5
any
governmental
entity
based
on
the
award
or
use
of
a
hope
6
scholarship
awarded
pursuant
to
this
chapter.
7
2.
It
is
the
intent
of
the
general
assembly
that
if
any
8
portion
of
this
chapter
is
challenged
in
court
as
violating
9
either
the
state
or
federal
constitution,
the
parents
of
10
eligible
students
shall
have
standing
to
be
parties
to
such
11
litigation,
and
should
be
permitted
by
the
court
to
intervene
12
if
the
parents
are
not
already
parties
to
such
litigation.
13
3.
If
any
provision
of
this
chapter
or
the
application
14
of
any
such
provision
of
this
chapter
to
any
person
or
15
circumstance
is
held
invalid
by
a
court
of
competent
16
jurisdiction,
the
remainder
of
this
chapter
or
the
application
17
of
the
provisions
of
this
chapter
to
persons
or
circumstances
18
other
than
those
to
which
the
chapter
is
held
invalid
shall
not
19
be
affected.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
This
bill
establishes
the
Iowa
hope
scholarship
program
24
for
the
school
years
commencing
on
or
after
July
1,
2023.
25
The
program
provides
hope
scholarships
to
eligible
students
26
for
qualifying
educational
expenses.
The
bill
phases
in
27
eligibility
for
the
program
based
on
grade
eligibility
and
28
whether
the
child
was
enrolled
in
an
accredited
nonpublic
29
school
in
the
base
year,
as
defined
in
the
bill.
30
The
Iowa
hope
scholarship
program
shall
be
administered
by
31
the
department
of
management.
32
The
bill
establishes
powers
and
duties
of
the
department
33
relating
to
the
administration
and
oversight
of
the
program,
34
including
the
adoption
of
administrative
rules.
The
bill
35
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requires
that
applications
for
the
program
for
the
school
1
year
beginning
July
1,
2023,
be
available
for
submission
no
2
later
than
October
15,
2022.
The
department
shall
approve
3
an
application
for
a
scholarship
if
a
parent
submits
an
4
application
for
a
scholarship
in
accordance
with
the
rules
5
adopted
by
the
department
that
includes
an
agreement
with
the
6
department,
promising
to
provide
an
education
for
the
eligible
7
recipient
through
enrollment
in
an
accredited
nonpublic
school
8
or
instruction
that
meets
the
requirements
of
Code
chapter
9
299A.
10
The
bill
establishes
a
hope
scholarship
program
fund
under
11
the
control
of
the
department
of
management.
For
each
fiscal
12
year
beginning
on
or
after
July
1,
2023,
there
is
appropriated
13
from
the
general
fund
of
the
state
to
the
hope
scholarship
fund
14
an
amount
necessary
to
pay
all
hope
scholarships
approved
for
15
that
fiscal
year
and
the
costs
to
administer
the
program
as
16
provided
in
the
bill.
17
Following
approval
of
the
scholarship
application,
the
18
department
shall
make
available
to
each
participating
student
19
a
scholarship
in
an
amount
equal
to
the
sum
of
all
the
20
following
for
the
same
school
budget
year:
(1)
the
product
21
of
the
student’s
weighted
enrollment
that
would
otherwise
22
be
assigned
to
the
pupil
if
the
pupil
was
enrolled
in
the
23
student’s
district
of
residence
multiplied
by
the
difference
24
between
88.4
percent
of
the
regular
program
state
cost
per
25
pupil
and
the
statewide
average
foundation
property
tax
per
26
pupil;
(2)
the
total
teacher
salary
supplement
district
cost
27
per
pupil
for
the
student’s
district
of
residence;
(3)
the
28
total
professional
development
supplement
district
cost
per
29
pupil
for
the
student’s
district
of
residence;
(4)
the
total
30
early
intervention
supplement
district
cost
per
pupil
for
the
31
student’s
district
of
residence;
(5)
the
total
area
education
32
agency
teacher
salary
supplement
district
cost
per
pupil
33
for
the
student’s
district
of
residence;
(6)
the
total
area
34
education
agency
professional
development
supplement
district
35
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cost
per
pupil
for
the
student’s
district
of
residence;
and
(7)
1
the
total
teacher
leadership
supplement
district
cost
per
pupil
2
for
the
student’s
district
of
residence.
3
The
bill
specifies
the
allowable
uses
for
hope
scholarship
4
funds.
5
A
hope
scholarship
program
expense
fund
is
created
under
6
the
control
of
the
department
of
management.
An
amount
7
not
to
exceed
5
percent
of
the
annual
appropriation
to
the
8
hope
scholarship
program
fund
shall
be
transferred
to
the
9
hope
scholarship
program
expense
fund
to
cover
the
annual
10
administrative
costs
of
the
hope
scholarship
program
and
the
11
cost
of
surety
bonds
for
education
service
providers
receiving
12
more
than
$100,000
annually
in
hope
scholarship
funds.
13
Under
the
bill,
funds
deposited
in
a
participating
student’s
14
hope
scholarship
account
do
not
constitute
taxable
income
to
15
the
parent
or
the
participating
student.
16
The
department
shall
continue
to
make
deposits
into
a
17
participating
student’s
hope
scholarship
account
unless
18
specified
eligibility
conditions
have
occurred
or
the
student’s
19
parent
fails
to
renew
the
scholarship.
A
parent
must
renew
a
20
participating
student’s
hope
scholarship
on
an
annual
basis.
21
The
bill
requires
the
department
to
maintain
an
updated
list
22
of
participating
education
service
providers
and
shall
ensure
23
that
the
list
is
publicly
available,
and
provide
parents
with
a
24
written
explanation
of
the
allowable
uses
of
hope
scholarship
25
funds.
The
department
may
contract
with
private
organizations
26
to
administer
the
hope
scholarship
program,
including
but
27
not
limited
to
private
financial
management
firms
to
manage
28
scholarship
accounts.
29
The
department
shall
implement
or
contract
with
a
30
private
organization
to
implement
a
commercially
viable,
31
cost-effective,
and
parent-friendly
system
for
payment
for
32
services
from
hope
scholarship
accounts
and
a
system
for
33
publicly
rating,
reviewing,
and
sharing
information
about
34
participating
education
service
providers.
The
bill
also
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