Bill Text: IA SF2261 | 2011-2012 | 84th General Assembly | Introduced


Bill Title: A bill for an act providing education savings grants for pupils attending a public school or an accredited nonpublic school or receiving competent private instruction, establishing an education savings grant fund, providing for the establishment of education achievement standards, making appropriations, providing penalties, and including applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-02-27 - Subcommittee, Hogg, Beall, and Feenstra. S.J. 361. [SF2261 Detail]

Download: Iowa-2011-SF2261-Introduced.html
Senate File 2261 - Introduced SENATE FILE 2261 BY CHELGREN A BILL FOR An Act providing education savings grants for pupils attending 1 a public school or an accredited nonpublic school or 2 receiving competent private instruction, establishing 3 an education savings grant fund, providing for the 4 establishment of education achievement standards, making 5 appropriations, providing penalties, and including 6 applicability provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5927XS (4) 84 md/sc
S.F. 2261 Section 1. Section 256.7, Code Supplement 2011, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 31. Adopt rules relating to applications 3 for an education savings grant, including application 4 processing timelines and information required to be submitted 5 by a parent or guardian, and rules to establish academic growth 6 standards pursuant to section 257.11B. 7 Sec. 2. Section 257.3, subsection 1, Code 2011, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . d. The amount of tuition collected by each 10 school district under section 257.3A shall be regarded as 11 property tax for purposes of this chapter. 12 Sec. 3. NEW SECTION . 257.3A Education savings grant —— 13 tuition. 14 A school district may collect as tuition from each pupil 15 enrolled in the school district an amount not to exceed the 16 education savings grant received by the pupil for that school 17 year under section 257.11B. 18 Sec. 4. NEW SECTION . 257.11B Education savings grant 19 program. 20 1. a. Pupils residing in this state, eligible to enroll in 21 grades kindergarten through twelve, and enrolled in a public 22 school, attending an accredited nonpublic school, or receiving 23 competent private instruction under chapter 299A shall be 24 eligible to receive an education savings grant in the manner 25 provided in this section for school years beginning on or after 26 July 1, 2013. Except as provided in subsection 6, education 27 savings grants shall be available for disbursement to parents 28 and guardians for the payment of qualified education expenses 29 as provided in this section. 30 b. (1) If a pupil fails to meet the academic growth 31 standards established by the state board of education under 32 subparagraph (2) for two consecutive school years for which 33 the student has received an education savings grant under this 34 section, the pupil shall not be eligible for an education 35 -1- LSB 5927XS (4) 84 md/sc 1/ 8
S.F. 2261 savings grant for future school years unless the pupil is 1 enrolled in an alternative options education program adopted 2 by the school district where the pupil resides under section 3 280.19A. If the pupil meets the academic growth standards 4 established by the state board of education for two consecutive 5 school years while enrolled in the alternative options 6 education program, the pupil shall again be eligible for 7 the education savings grant while enrolled in any public 8 school, attending an accredited nonpublic school, or receiving 9 competent private instruction under chapter 299A. 10 (2) The state board of education shall adopt standards for 11 determining academic growth of pupils in grades kindergarten 12 through twelve. Such academic growth standards shall include 13 minimum levels of proficiency in the areas of math, science, 14 literacy, and social studies. 15 2. a. (1) By January 31 preceding the school year for 16 which the education savings grant is requested, the parent 17 or guardian of the pupil requesting to receive an education 18 savings grant shall submit an application to the department of 19 education, on application forms developed by the department, 20 indicating that the parent or guardian intends to enroll the 21 pupil in either a public school, an accredited nonpublic 22 school, or provide competent private instruction for the pupil 23 under chapter 299A. 24 (2) In addition to such information deemed appropriate by 25 the department of education, the application shall require 26 certification from the public school or the accredited 27 nonpublic school of the pupil’s enrollment for the following 28 school year or a statement indicating the parent or guardian’s 29 intent to provide or arrange for competent private instruction 30 for the pupil for the following school year. 31 b. By March 1 preceding the school year for which the 32 education savings grant is requested, the department of 33 education shall notify the department of management of the 34 number of pupils in each school district designated for the 35 -2- LSB 5927XS (4) 84 md/sc 2/ 8
S.F. 2261 following school year to receive an education savings grant 1 and the amount of the education savings grant for each pupil. 2 The department of education shall also notify the parent 3 or guardian of such pupils who are approved to receive an 4 education savings grant. 5 c. Education savings grants shall only be approved for one 6 school year and applications must be submitted under paragraph 7 “a” for education savings grants in subsequent school years. 8 3. a. The department of management shall assign each pupil 9 an education savings grant of three thousand seven hundred 10 dollars. 11 b. The department of management shall on July 1 transfer 12 such amounts to the pupil’s account in the Iowa education 13 savings grant fund established under subsection 4. Such amount 14 shall be available for disbursement to the pupil’s parent or 15 guardian for the payment of qualified educational expenses 16 incurred by such persons for the pupil during that school year. 17 4. An Iowa education savings grant fund is created in 18 the state treasury under the control of the department of 19 management consisting of moneys appropriated to the department 20 for the purpose of providing education savings grants under 21 this section. For the fiscal year commencing July 1, 2013, and 22 each succeeding fiscal year, there is appropriated from the 23 general fund of the state to the department of management the 24 amount necessary to pay all education savings grants approved 25 for that fiscal year. The director of the department of 26 management has all powers necessary to carry out and effectuate 27 the purposes, objectives, and provisions of this section 28 pertaining to the fund, including the power to do all of the 29 following: 30 a. Make and enter into contracts necessary for the 31 administration of the fund. 32 b. Procure insurance against any loss in connection with the 33 assets of the fund. 34 c. Make disbursements from a pupil’s account within the 35 -3- LSB 5927XS (4) 84 md/sc 3/ 8
S.F. 2261 fund to the pupil’s parents or guardians for the payment of 1 qualified educational expenses. 2 d. Adopt rules pursuant to chapter 17A for the 3 administration of the fund and accounts within the fund. 4 5. a. For each pupil approved for an education savings 5 grant, the department shall establish an account for that pupil 6 in the education savings grant fund. The amount of the pupil’s 7 education savings grant determined under subsection 3 shall be 8 deposited into the pupil’s account on July 1 and such amount 9 shall be immediately available for disbursement to parents and 10 guardians upon filing and approval of claims from the pupil’s 11 account for qualified education expenses incurred by the parent 12 or guardian for the pupil during that fiscal year. 13 b. A parent or guardian of a pupil may on forms prescribed 14 by the department of management submit claims for disbursements 15 of moneys within the account. The department may by rule 16 designate the appropriate supporting documentation necessary 17 for the disbursement of moneys in an account including but not 18 limited to invoices of amounts due and receipts of amounts 19 paid for qualified education expenses. If a pupil is enrolled 20 in an alternative options education program as the result of 21 failing to meet the academic growth standards under subsection 22 1, paragraph “b” , disbursements of moneys in a pupil’s account 23 shall only be made by the department to the parent or guardian 24 for tuition expenses of the alternative options education 25 program. 26 6. For each pupil with a positive balance in the pupil’s 27 account in the education savings grant fund upon graduation 28 from high school, the department of management shall maintain 29 such account in the fund until the pupil is twenty-five years 30 of age. Following graduation from high school until the pupil 31 is twenty-five years of age, moneys in the pupil’s account 32 may be used for higher education costs, as defined in section 33 12D.1, subsection 2. Disbursements from a pupil’s account 34 for higher education costs shall be claimed by and disbursed 35 -4- LSB 5927XS (4) 84 md/sc 4/ 8
S.F. 2261 to the pupil. Claims and disbursements for higher education 1 costs under this subsection shall be made in the same manner 2 as claims and disbursements for qualified educational expenses 3 under subsection 5. Moneys in a pupil’s account when the pupil 4 turns twenty-five years of age shall be transferred by the 5 department for deposit in the general fund of the state. 6 7. For purposes of this section, “qualified educational 7 expense” includes tuition at a public school collected under 8 section 257.3A, tuition and fees at an accredited nonpublic 9 school, textbooks, payment to a licensed or accredited tutor, 10 curriculum materials, tuition or fees for nonpublic online 11 education programs, education materials and services for pupils 12 with disabilities, standardized test fees, and other expenses 13 incurred by the parent or guardian that are directly related to 14 the education of the pupil at a public school or an accredited 15 nonpublic school or directly related to providing competent 16 private instruction for the pupil under chapter 299A. 17 8. A person who makes a false claim for the purpose of 18 obtaining an education savings grant provided for in this 19 section or who knowingly receives the grant without being 20 legally entitled to it is guilty of a fraudulent practice. The 21 false claim for an education savings grant shall be disallowed 22 and if amounts from the grant have been disbursed from the 23 applicable account in the education savings grant fund, the 24 department of management shall initiate legal proceedings to 25 recover such amounts. 26 Sec. 5. APPLICABILITY. This Act applies to school budget 27 years and fiscal years beginning on or after July 1, 2013. 28 Sec. 6. CORRESPONDING AMENDMENTS LEGISLATION. Additional 29 legislation is required to fully implement this Act. The 30 director of the department of education shall, in compliance 31 with section 2.16, prepare draft legislation for submission to 32 the legislative services agency, as necessary, to implement the 33 school finance modifications under this Act and to implement 34 the education savings grant program created in this Act. 35 -5- LSB 5927XS (4) 84 md/sc 5/ 8
S.F. 2261 EXPLANATION 1 This bill provides education savings grants for pupils 2 enrolled in a public school, attending an accredited nonpublic 3 school, or receiving competent private instruction. 4 Under the bill, resident pupils eligible to enroll in 5 grades kindergarten through 12 and enrolled in a public 6 school, attending an accredited nonpublic school, or receiving 7 competent private instruction under Code chapter 299A are 8 eligible to receive an education savings grant for school years 9 beginning on or after July 1, 2013. By January 31 preceding 10 the school year for which the education savings grant is 11 requested, the parent or guardian of the pupil requesting to 12 receive an education savings grant must submit an application 13 to the department of education indicating that the parent or 14 guardian intends to enroll the pupil in a public school or 15 an accredited nonpublic school, or provide competent private 16 instruction for the pupil. 17 Under the bill, however, if a pupil fails to meet the 18 academic growth standards established by the state board of 19 education for two consecutive school years for which the 20 student has received an education savings grant, the pupil 21 is not eligible for an education savings grant for future 22 school years unless the pupil is enrolled in an alternative 23 options education program adopted by the school district 24 where the pupil resides under Code section 280.19A. The 25 bill provides that if the pupil meets the academic growth 26 standards established by the state board of education for two 27 consecutive school years while enrolled in the alternative 28 options education program, the pupil shall again be eligible 29 for the education savings grant while enrolled in any 30 public school, attending an accredited nonpublic school, or 31 receiving competent private instruction under Code chapter 32 299A. The bill requires the state board of education to adopt 33 standards for determining academic growth of pupils in grades 34 kindergarten through 12. Such academic growth standards must 35 -6- LSB 5927XS (4) 84 md/sc 6/ 8
S.F. 2261 include minimum levels of proficiency in the areas of math, 1 science, literacy, and social studies. 2 The bill requires that by March 1 preceding the school 3 year for which the education savings grant is requested, 4 the department of education must notify the department of 5 management of the number of pupils in each school district 6 designated for the following school year to receive an 7 education savings grant. Education savings grants may only be 8 approved for one school year and applications must be submitted 9 for education savings grants in subsequent school years. 10 The amount of each education savings grant is $3,700 per 11 pupil. 12 The bill creates an Iowa education savings grant fund in 13 the state treasury under the control of the department of 14 management consisting of moneys appropriated to the department 15 for the purpose of providing education savings grants. For 16 the fiscal year commencing July 1, 2013, and each succeeding 17 fiscal year, there is appropriated from the general fund of 18 the state to the department of management the amount necessary 19 to pay all education savings grants approved for that fiscal 20 year. For each pupil approved for an education savings grant, 21 the department of management must establish an account for 22 that pupil in the education savings grant fund. The amount 23 of the pupil’s education savings grant is deposited into the 24 pupil’s account on July 1 and such amount is available for 25 disbursement to parents and guardians upon filing and approval 26 of claims from the pupil’s account for qualified education 27 expenses, as defined in the bill, incurred by the parent or 28 guardian for the pupil during that fiscal year. However, if a 29 pupil is enrolled in an alternative options education program 30 as the result of failing to meet the academic growth standards, 31 disbursements of moneys in a pupil’s account shall only be made 32 by the department of management for tuition expenses of the 33 alternative options education program. 34 Under the bill, for each pupil with a positive balance in 35 -7- LSB 5927XS (4) 84 md/sc 7/ 8
S.F. 2261 the pupil’s account in the education savings grant fund upon 1 graduation from high school, the department of management is 2 required to maintain the account in the fund until the pupil 3 is 25 years old. Following graduation from high school until 4 the pupil is 25 years old, moneys in the pupil’s account may 5 be used by the pupil for higher education costs, as defined 6 in Code section 12D.1. Moneys in a pupil’s account when the 7 pupil turns 25 years old are transferred by the department of 8 management for deposit in the general fund of the state. 9 The bill provides that a person who makes a false claim for 10 the purpose of obtaining an education savings grant or who 11 knowingly receives the grant without being legally entitled 12 to it is guilty of a fraudulent practice and is subject to a 13 criminal penalty. The bill allows the department of management 14 to initiate legal proceedings to recover grants improperly 15 awarded under the bill. 16 The bill authorizes school districts to collect as tuition 17 from each pupil enrolled in the school district an amount not 18 to exceed the education savings grant received by the pupil for 19 that school year under new Code section 257.11B. Such tuition 20 amounts collected by each school district under new Code 21 section 257.3A shall be regarded as property tax for purposes 22 of the school foundation formula. 23 The bill applies to school budget years and fiscal years 24 beginning on or after July 1, 2013. 25 The bill provides that additional legislation is required 26 to fully implement the bill and requires the director of 27 the department of education to prepare draft legislation 28 in compliance with Code section 2.16 for submission to the 29 legislative services agency, as necessary, to implement the 30 school finance modifications and the education savings grant 31 program in the bill. 32 -8- LSB 5927XS (4) 84 md/sc 8/ 8
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