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Senate
File
453
-
Introduced
SENATE
FILE
453
BY
DONAHUE
A
BILL
FOR
An
Act
relating
to
school
district
and
area
education
agency
1
funding
and
education
savings
accounts,
and
including
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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DIVISION
I
1
TRANSPORTATION
2
Section
1.
Section
285.2,
subsection
1,
paragraph
a,
Code
3
2025,
is
amended
to
read
as
follows:
4
a.
(1)
Boards
Except
as
provided
in
subparagraph
(2),
5
boards
of
directors
of
school
districts
shall
be
required
to
6
provide
transportation
services
to
nonpublic
school
pupils
7
as
provided
in
section
285.1
when
the
general
assembly
8
appropriates
funds
to
the
department
of
education
for
the
9
payment
of
claims
for
transportation
costs
submitted
by
the
10
school
district.
11
(2)
Boards
of
directors
of
school
districts
shall
not
12
be
required
to
provide
transportation
services
to
nonpublic
13
school
pupils
of
nonpublic
schools
that
accept
payments
from
14
individual
accounts
under
section
257.11B.
15
Sec.
2.
Section
285.3,
subsection
1,
Code
2025,
is
amended
16
to
read
as
follows:
17
1.
a.
A
Except
as
provided
in
paragraph
“b”
,
a
parent
or
18
legal
guardian
of
a
student
attending
an
accredited
nonpublic
19
school,
who
furnishes
transportation
for
the
student
pursuant
20
to
section
285.1,
subsection
17
,
paragraph
“c”
,
and
who
meets
21
the
requirements
of
subsection
2
of
this
section
,
is
entitled
22
to
reimbursement
equal
to
an
amount
calculated
under
the
23
provisions
of
section
285.1,
subsection
3
.
In
addition,
a
24
parent
or
guardian
who
transports
one
or
more
family
members
25
more
than
four
miles
to
their
nonpublic
school
of
attendance
26
shall
be
entitled
to
one
supplemental
mileage
payment
per
27
family,
per
claim
period,
equal
to
thirteen
percent
of
the
28
parental
reimbursement
for
the
claim
period
rounded
to
the
29
nearest
whole
dollar.
30
b.
A
parent
or
guardian
of
a
student
attending
a
nonpublic
31
school,
who
furnishes
transportation
described
in
paragraph
32
“a”
,
is
not
entitled
to
reimbursement
or
a
supplemental
mileage
33
payment
under
paragraph
“a”
,
if
the
parent
or
guardian
uses
34
funds
from
a
pupil’s
individual
account
under
section
257.11B
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to
make
a
payment
to
a
nonpublic
school.
1
Sec.
3.
APPLICABILITY.
This
division
of
this
Act
applies
to
2
school
budget
years
beginning
on
or
after
July
1,
2025.
3
DIVISION
II
4
SCHOOL
AID
FORMULA
FOR
NONPUBLIC
SCHOOL
SHARED
TIME
5
Sec.
4.
Section
257.6,
subsection
1,
paragraph
a,
6
subparagraph
(3),
Code
2025,
is
amended
to
read
as
follows:
7
(3)
Shared-time
and
part-time
pupils
of
school
age
enrolled
8
in
public
schools
within
the
district,
irrespective
of
the
9
districts
in
which
the
pupils
reside,
in
the
proportion
that
10
the
time
for
which
they
are
enrolled
or
receive
instruction
for
11
the
school
year
is
to
the
time
that
full-time
pupils
carrying
12
a
normal
course
schedule,
at
the
same
grade
level,
in
the
13
same
school
district,
for
the
same
school
year,
are
enrolled
14
and
receive
instruction.
Tuition
charges
to
the
parent
or
15
guardian
of
a
shared-time
or
part-time
nonresident
pupil
shall
16
be
reduced
by
the
amount
of
any
increased
state
aid
received
17
by
the
district
by
the
counting
of
the
pupil
unless
the
pupil
18
is
also
enrolled
in
a
nonpublic
school
that
accepts
funds
from
19
individual
accounts
under
section
257.11B
.
This
subparagraph
20
applies
to
pupils
enrolled
in
grades
nine
through
twelve
under
21
section
299A.8
and
to
pupils
from
accredited
nonpublic
schools
22
accessing
classes
or
services
on
the
accredited
nonpublic
23
school
premises
under
section
256.12
or
on
the
school
district
24
site,
but
excludes
accredited
nonpublic
school
pupils
receiving
25
classes
or
services
funded
entirely
by
federal
grants
or
26
allocations.
27
DIVISION
III
28
AREA
EDUCATION
AGENCIES
MEDIA
AND
EDUCATION
COSTS
FOR
NONPUBLIC
29
STUDENTS
30
Sec.
5.
Section
257.37,
subsection
4,
Code
2025,
is
amended
31
to
read
as
follows:
32
4.
“Enrollment
served”
means
the
basic
enrollment
of
all
33
school
districts
within
the
boundaries
of
the
area
education
34
agency
plus
the
number
of
nonpublic
school
pupils
served
by
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the
area
education
agency
with
media
services
or
educational
1
services,
as
applicable,
other
than
nonpublic
school
pupils
of
2
nonpublic
schools
that
accept
funds
from
individual
accounts
3
under
section
257.11B,
and
except
that
if
a
nonpublic
school
4
pupil
or
a
pupil
attending
another
district
under
a
whole
grade
5
sharing
agreement
or
open
enrollment
receives
services
through
6
an
area
other
than
the
area
of
the
pupil’s
residence,
the
7
pupil
shall
be
deemed
to
be
served
by
the
area
of
the
pupil’s
8
residence,
which
shall
by
contractual
arrangement
reimburse
9
the
area
through
which
the
pupil
actually
receives
services.
10
Each
school
district
shall
include
in
the
enrollment
report
11
submitted
pursuant
to
section
257.6,
subsection
1
,
the
number
12
of
nonpublic
school
pupils
within
each
school
district
for
13
media
and
educational
services
served
by
the
area.
However,
14
the
school
district
shall
not
include
in
the
enrollment
report
15
nonpublic
school
pupils
receiving
classes
or
services
funded
16
entirely
by
federal
grants
or
allocations.
17
Sec.
6.
Section
257.37,
subsection
5,
Code
2025,
is
amended
18
to
read
as
follows:
19
5.
a.
If
an
area
education
agency
does
not
serve
nonpublic
20
school
pupils
who
attend
nonpublic
schools
that
do
not
accept
21
funds
from
individual
accounts
under
section
257.11B
in
a
22
manner
comparable
to
services
provided
public
school
pupils
23
for
media
and
educational
services,
as
determined
by
the
24
state
board
of
education,
the
state
board
shall
instruct
the
25
department
of
management
to
reduce
the
funds
for
media
services
26
and
educational
services
within
the
area
one
time
by
an
amount
27
to
compensate
for
such
reduced
services.
The
media
services
28
budget
shall
be
reduced
by
an
amount
equal
to
the
product
of
29
the
cost
per
pupil
in
basic
enrollment
for
the
budget
year
for
30
media
services
times
the
difference
between
the
enrollment
31
served
and
the
basic
enrollment
recorded
for
the
area.
The
32
educational
services
budget
shall
be
reduced
by
an
amount
equal
33
to
the
product
of
the
cost
per
pupil
in
basic
enrollment
for
34
the
budget
year
for
educational
services
times
the
difference
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between
the
enrollment
served
and
the
basic
enrollment
recorded
1
for
the
area.
2
b.
This
subsection
applies
only
to
media
and
educational
3
services
which
cannot
be
diverted
for
religious
purposes.
4
c.
Notwithstanding
this
subsection
,
an
area
education
agency
5
shall
distribute
to
nonpublic
schools
that
do
not
accept
funds
6
from
individual
accounts
under
section
257.11B
media
materials
7
purchased
wholly
or
partially
with
federal
funds
in
a
manner
8
comparable
to
the
distribution
of
such
media
materials
to
9
public
schools
as
determined
by
the
director
of
the
department
10
of
education.
11
Sec.
7.
Section
273.2,
subsection
3,
paragraph
a,
Code
2025,
12
is
amended
to
read
as
follows:
13
a.
The
area
education
agency
shall
furnish
educational
14
services
and
programs
as
provided
in
section
273.1
,
this
15
section
,
sections
273.3
through
273.8
,
and
chapter
256B
to
16
pupils
enrolled
in
public
or
nonpublic
schools
which
are
on
the
17
list
of
accredited
schools
pursuant
to
section
256.11
,
which
18
request
to
receive
such
services
,
except
to
pupils
as
provided
19
in
subsection
15
.
The
programs
and
services
provided
shall
be
20
at
least
commensurate
with
programs
and
services
existing
on
21
July
1,
1974.
The
programs
and
services
provided
to
pupils
22
enrolled
in
nonpublic
schools
shall
be
comparable
to
programs
23
and
services
provided
to
pupils
enrolled
in
public
schools
24
within
constitutional
guidelines.
25
Sec.
8.
Section
273.2,
subsection
3,
paragraph
b,
26
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
27
follows:
28
The
Except
nonpublic
schools
that
accept
payments
from
29
parents
or
guardians
with
an
account
under
section
257.11B,
the
30
area
education
agency
may
furnish
evidence-based
professional
31
development
services
to
public
or
nonpublic
schools
which
are
32
on
the
list
of
accredited
schools
pursuant
to
section
256.11
if
33
any
of
the
following
requirements
are
satisfied:
34
Sec.
9.
Section
273.2,
subsection
5,
paragraph
a,
Code
2025,
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is
amended
to
read
as
follows:
1
a.
The
area
education
agency
may
furnish
services
under
2
subsection
3
or
4
to
public
or
nonpublic
schools
located
within
3
its
boundaries,
or
within
the
boundaries
of
a
contiguous
area
4
education
agency,
which
are
on
the
list
of
accredited
schools
5
pursuant
to
section
256.11
,
except
for
nonpublic
schools
that
6
accept
payments
from
accounts
under
section
257.11B
.
7
Sec.
10.
Section
273.2,
subsection
6,
paragraph
d,
Code
8
2025,
is
amended
to
read
as
follows:
9
d.
Auxiliary
services
for
nonpublic
school
pupils
as
10
provided
in
section
256.12
.
However,
if
auxiliary
services
are
11
provided
their
funding
shall
be
based
on
the
type
of
service
12
provided
,
except
if
the
parent
or
guardian
of
a
nonpublic
13
school
pupil
uses
funds
from
a
pupil’s
individual
account
under
14
section
257.11B
to
make
a
payment
to
an
accredited
nonpublic
15
school,
no
funding
shall
be
provided
to
the
nonpublic
school
16
pupil
.
17
Sec.
11.
Section
273.2,
Code
2025,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
15.
A
nonpublic
school
pupil
whose
parent
20
or
guardian
uses
funds
from
the
pupil’s
individual
account
21
under
section
257.11B
to
make
a
payment
to
an
accredited
22
nonpublic
school,
the
nonpublic
school
pupil
shall
not
be
23
eligible
to
use
educational
services
and
programs
provided
24
under
this
section,
unless
the
pupil
pays
the
area
education
25
agency
directly
for
the
services
and
programs.
26
DIVISION
IV
27
SCHOOL
TUITION
ORGANIZATION
TAX
CREDIT
28
Sec.
12.
Section
422.11S,
subsection
2,
Code
2025,
is
29
amended
by
adding
the
following
new
paragraph:
30
NEW
PARAGRAPH
.
d.
The
contribution
is
used
by
a
qualified
31
school
that
does
not
accept
payments
from
a
parent
or
guardian
32
using
funds
from
a
pupil’s
individual
account
under
section
33
257.11B.
34
Sec.
13.
APPLICABILITY.
This
division
of
this
Act
applies
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to
contributions
made
to
a
school
tuition
organization
on
or
1
after
July
1,
2025.
2
DIVISION
V
3
SCHOOL
TUITION
AND
TEXTBOOK
TAX
CREDIT
4
Sec.
14.
Section
422.12,
subsection
2,
paragraph
b,
Code
5
2025,
is
amended
to
read
as
follows:
6
b.
A
tuition
credit
equal
to
twenty-five
percent
of
the
7
first
two
thousand
dollars
which
the
taxpayer
has
paid
to
8
others
for
each
dependent
in
grades
kindergarten
through
9
twelve,
for
tuition
and
textbooks
of
each
dependent
who
10
is
receiving
private
instruction
or
who
is
attending
an
11
elementary
or
secondary
school
situated
in
Iowa,
which
school
12
is
accredited
or
approved
under
section
256.11
,
which
is
not
13
operated
for
profit,
which
is
not
accepting
payments
from
14
a
parent
or
guardian
using
funds
from
a
pupil’s
individual
15
account
under
section
257.11B,
and
which
adheres
to
the
16
provisions
of
the
federal
Civil
Rights
Act
of
1964
and
chapter
17
216
.
Notwithstanding
any
other
provision,
all
other
credits
18
allowed
under
this
subsection
shall
be
deducted
before
the
19
tuition
credit
under
this
paragraph.
The
department,
when
20
conducting
an
audit
of
a
taxpayer’s
return,
shall
also
audit
21
the
tuition
tax
credit
portion
of
the
tax
return.
22
Sec.
15.
APPLICABILITY.
This
division
of
this
Act
applies
23
to
tuition
and
textbooks
purchased
for
school
budget
years
24
beginning
on
or
after
July
1,
2025.
25
DIVISION
VI
26
CONCURRENT
ENROLLMENT
27
Sec.
16.
Section
261E.2,
Code
2025,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
01.
“Accredited
nonpublic
school”
means
a
30
nonpublic
school
that
does
not
accept
payments
from
a
parent
or
31
guardian
using
funds
from
a
pupil’s
individual
account
under
32
section
257.11B.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
public
school
funding
and
education
2
savings
accounts
(ESAs).
3
DIVISION
I
——
TRANSPORTATION.
The
bill
strikes
the
4
requirement
that
the
board
of
directors
of
a
school
district
5
provide
transportation
services
to
nonpublic
school
pupils
6
when
the
general
assembly
appropriates
funds
to
the
department
7
of
education
for
the
payment
of
claims
for
transportation
8
costs,
if
the
nonpublic
school
accepts
payments
using
funds
9
from
an
ESA.
The
bill
also
specifies
parents
and
guardians
of
10
nonpublic
school
students
are
not
entitled
to
reimbursement
for
11
transportation
costs
or
supplemental
mileage
payments,
if
the
12
parent
or
guardian
utilizes
an
ESA
for
payments
to
a
nonpublic
13
school.
14
The
division
applies
to
school
budget
years
beginning
on
or
15
after
July
1,
2025.
16
DIVISION
II
——
SCHOOL
AID
FORMULA
FOR
NONPUBLIC
SCHOOL
17
SHARED
TIME.
Under
the
bill,
for
shared-time
and
part-time
18
pupils
enrolled
in
a
school
district,
the
tuition
charged
to
19
the
parent
or
guardian
by
the
school
district
is
reduced
by
the
20
amount
of
any
increased
state
aid
received
by
the
district
by
21
counting
the
pupil
in
enrollment,
unless
the
pupil
attends
a
22
nonpublic
school
that
accepts
payments
from
accounts
under
Code
23
section
257.11B.
24
DIVISION
III
——
AREA
EDUCATION
AGENCIES
MEDIA
AND
EDUCATION
25
COSTS
FOR
NONPUBLIC
STUDENTS.
A
nonpublic
school
pupil
who
26
attends
a
nonpublic
school
that
accepts
payments
from
accounts
27
under
Code
section
257.11B
shall
not
be
considered
part
of
28
the
enrollment
for
purposes
of
“enrollment
served”
under
Code
29
section
257.37.
30
The
bill
strikes
provisions
requiring
area
education
31
agencies
to
provide
educational,
programming,
and
professional
32
services
to
nonpublic
schools
that
accept
payments
from
parents
33
or
guardians
using
an
ESA
and
to
the
pupils
that
are
the
34
subject
of
such
payments.
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S.F.
453
DIVISION
IV
——
SCHOOL
TUITION
ORGANIZATION
TAX
CREDIT
——
1
REPEAL.
The
bill
provides
that
contributions
made
to
a
student
2
tuition
organization
(STO)
that
are
used
by
a
qualified
school
3
that
accepts
payments
from
a
parent
using
funds
from
an
ESA
4
are
not
eligible
to
receive
the
STO
tax
credit.
The
provision
5
applies
to
contributions
made
to
a
school
tuition
organization
6
on
or
after
July
1,
2025.
7
DIVISION
V
——
SCHOOL
TUITION
AND
TEXTBOOK
TAX
CREDIT.
The
8
bill
modifies
the
tuition
and
textbook
tax
credit
in
Code
9
section
422.12(b)
that
is
equal
to
25
percent
of
the
first
10
$2,000
the
taxpayer
has
paid
others
for
tuition
and
textbooks
11
for
each
dependent
receiving
private
instruction
at
an
12
accredited
nonpublic
school
that
does
not
accept
payments
from
13
ESA
funds.
14
The
division
applies
to
tuition
and
textbooks
purchased
for
15
school
budget
years
beginning
on
or
after
July
1,
2025.
16
DIVISION
VI
——
CONCURRENT
ENROLLMENT.
The
bill
defines
17
“accredited
nonpublic
school”
for
purposes
of
Code
chapter
261E
18
(senior
year
plus
program)
to
mean
a
nonpublic
school
that
does
19
not
accept
payments
from
a
parent
or
guardian
using
an
ESA.
By
20
defining
“accredited
nonpublic
school”
in
Code
chapter
261E
21
in
this
manner,
a
pupil
who
attends
a
nonpublic
school
that
22
accepts
ESA
funds
is
not
eligible
for
the
senior
year
plus
23
program
under
Code
chapter
261E.
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