Senate File 94 - Introduced SENATE FILE 94 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 1022) A BILL FOR An Act relating to education programs and funding by 1 establishing an education savings account program, modifying 2 certain school district categorical funding supplements, 3 making appropriations, providing penalties, and including 4 effective date and retroactive applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1174SV (1) 90 md/jh
S.F. 94 DIVISION I 1 SHORT TITLE 2 Section 1. SHORT TITLE. This Act shall be known and may be 3 cited as the Students First Act. 4 DIVISION II 5 EDUCATION SAVINGS ACCOUNT PROGRAM 6 Sec. 2. Section 256.9, Code 2023, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 66. Adopt rules relating to the 9 administration of, and applications for, the education savings 10 account program pursuant to section 257.11B, including but not 11 limited to application processing timelines and information 12 required to be submitted by a parent or guardian. 13 Sec. 3. Section 257.10, subsection 9, paragraph c, 14 subparagraph (1), Code 2023, is amended to read as follows: 15 (1) The unadjusted teacher salary supplement district cost 16 is the teacher salary supplement district cost per pupil for 17 each school district for a budget year multiplied by the sum 18 of the budget enrollment for that school district plus the 19 number of resident pupils in the school district that received 20 an education savings account payment under section 257.11B for 21 the base year . 22 Sec. 4. Section 257.10, subsection 10, paragraph c, 23 subparagraph (1), Code 2023, is amended to read as follows: 24 (1) The unadjusted professional development supplement 25 district cost is the professional development supplement 26 district cost per pupil for each school district for a budget 27 year multiplied by the sum of the budget enrollment for that 28 school district plus the number of resident pupils in the 29 school district that received an education savings account 30 payment under section 257.11B for the base year . 31 Sec. 5. Section 257.10, subsection 11, paragraph c, 32 subparagraph (1), Code 2023, is amended to read as follows: 33 (1) The unadjusted early intervention supplement district 34 cost is the early intervention supplement district cost per 35 -1- LSB 1174SV (1) 90 md/jh 1/ 16
S.F. 94 pupil for each school district for a budget year multiplied 1 by the sum of the budget enrollment for that school district 2 plus the number of resident pupils in the school district that 3 received an education savings account payment under section 4 257.11B for the base year . 5 Sec. 6. Section 257.10, subsection 12, paragraph c, 6 subparagraph (1), Code 2023, is amended to read as follows: 7 (1) The unadjusted teacher leadership supplement district 8 cost is the teacher leadership supplement district cost per 9 pupil for each school district for a budget year multiplied 10 by the sum of the budget enrollment for that school district 11 plus the number of resident pupils in the school district that 12 received an education savings account payment under section 13 257.11B for the base year . 14 Sec. 7. NEW SECTION . 257.11B Education savings account 15 program. 16 1. For purposes of this section: 17 a. Nonpublic school means the same as defined in section 18 285.16. 19 b. (1) Qualified educational expenses includes tuition 20 and fees at a nonpublic school, textbooks, fees or payments for 21 educational therapies, including tutoring or cognitive skills 22 training, curriculum fees, software, and materials for a course 23 of study for a specific subject matter or grade level, tuition 24 or fees for nonpublic online education programs, tuition for 25 vocational and life skills education approved by the department 26 of education, education materials and services for pupils with 27 disabilities from an accredited provider, including the cost of 28 paraprofessionals and assistants who are trained in accordance 29 with state law, standardized test fees, and advanced placement 30 examinations or examinations related to postsecondary education 31 admission or credentialing. 32 (2) Qualified educational expenses shall be limited to 33 the items described in subparagraph (1) and rules adopted 34 by the department to implement this section and does not 35 -2- LSB 1174SV (1) 90 md/jh 2/ 16
S.F. 94 include transportation costs for the pupil, the cost of food 1 or refreshments consumed by the pupil, the cost of clothing 2 for the pupil, or the cost of disposable materials, including 3 but not limited to paper, notebooks, pencils, pens, and art 4 supplies. 5 c. Resident means the same as defined in section 282.1, 6 subsection 2. 7 2. a. (1) For the school budget year beginning July 8 1, 2023, the following pupils who attend a nonpublic school 9 for that school budget year shall be eligible to receive an 10 education savings account payment: 11 (a) A resident pupil who is eligible to enroll in 12 kindergarten. 13 (b) A resident pupil who is eligible to enroll in grades one 14 through twelve and was not enrolled in a nonpublic school for 15 the school year immediately preceding the school year for which 16 the education savings account payment is requested. 17 (c) A resident pupil who is eligible to enroll in grades 18 one through twelve and was enrolled in a nonpublic school year 19 immediately preceding the school year for which the education 20 savings account payment is requested if the pupils household 21 has an annual income less than or equal to three hundred 22 percent of the most recently revised poverty income guidelines 23 published by the United States department of health and human 24 services. 25 (2) For the school budget year beginning July 1, 2024, the 26 following pupils who attend a nonpublic school for that school 27 budget year shall be eligible to receive an education savings 28 account payment: 29 (a) A resident pupil who is eligible to enroll in 30 kindergarten. 31 (b) A resident pupil who is eligible to enroll in grades one 32 through twelve and was not enrolled in a nonpublic school for 33 the school year immediately preceding the school year for which 34 the education savings account payment is requested. 35 -3- LSB 1174SV (1) 90 md/jh 3/ 16
S.F. 94 (c) A resident pupil who is eligible to enroll in grades one 1 through twelve and was enrolled in a nonpublic school for the 2 school year immediately preceding the school year for which the 3 education savings account payment is requested if the pupils 4 household has an annual income less than or equal to four 5 hundred percent of the most recently revised poverty income 6 guidelines published by the United States department of health 7 and human services. 8 (d) A resident pupil who received an education savings 9 account payment in the immediately preceding school budget 10 year. 11 (3) For school budget years beginning on or after July 12 1, 2025, resident pupils eligible to enroll in kindergarten 13 through grade twelve who attend a nonpublic school for the 14 applicable school budget year shall be eligible to receive an 15 education savings account payment. 16 b. Education savings account payments shall be made 17 available to parents and guardians in the manner authorized 18 under subsection 5 for the payment of qualified educational 19 expenses as provided in this section. Parents and guardians 20 shall first use education savings account payments for all 21 qualified educational expenses that are tuition and fees for 22 which the parent or guardian is responsible for payment at the 23 pupils nonpublic school prior to using the education savings 24 account for other qualified educational expenses. 25 3. a. On or after January 1, but on or before June 30, 26 preceding the school year for which the education savings 27 account payment is requested, the parent or guardian of an 28 eligible pupil may request an education savings account payment 29 by submitting an application to the department of education. 30 b. Within thirty days following submission of an 31 application, the department of education or third-party entity 32 shall notify the parent or guardian of each pupil approved 33 for the following school year and specify the amount of the 34 education savings account payment for the pupil, if known at 35 -4- LSB 1174SV (1) 90 md/jh 4/ 16
S.F. 94 the time of the notice. As soon as practical following the 1 processing of all applications, the department of education or 2 third-party entity shall determine the number of pupils in each 3 school district approved for the school budget year and provide 4 such information to the department of management. 5 c. Education savings account payments shall only be approved 6 for one school year and applications must be submitted annually 7 for payments in subsequent school years. 8 4. Each education savings account payment shall be equal to 9 the regular program state cost per pupil for the same school 10 budget year. 11 5. An education savings account fund is created in 12 the state treasury under the control of the department of 13 education consisting of moneys appropriated to the department 14 of education for the purpose of providing education savings 15 account payments under this section. For the fiscal year 16 commencing July 1, 2023, and each succeeding fiscal year, 17 there is appropriated from the general fund of the state 18 to the department of education to be credited to the fund 19 the amount necessary to pay all education savings account 20 payments approved for that fiscal year. The director of the 21 department of education has all powers necessary to carry out 22 and effectuate the purposes, objectives, and provisions of this 23 section pertaining to the fund, including the power to do all 24 of the following: 25 a. Make and enter into contracts with a third-party entity 26 necessary for the administration of the program. 27 b. Procure insurance against any loss in connection with the 28 assets of the fund or require a surety bond. 29 c. Contract with a qualified firm, including but not limited 30 to the third-party entity under paragraph a , to allocate 31 funds from each pupils account for the payment of qualified 32 educational expenses by the pupils parent or guardian. 33 d. Require the qualified firm under paragraph c to 34 offer the department of education the capability of automated 35 -5- LSB 1174SV (1) 90 md/jh 5/ 16
S.F. 94 clearinghouse transactions, electronic commerce transactions, 1 reimbursement transactions, and debit card payments in order to 2 meet the diverse needs of participating parents and guardians 3 to pay for qualified educational expenses. The director of 4 the department of education shall determine which transaction 5 capabilities will be available to participating parents and 6 guardians. 7 e. Reduce the possibility of waste, fraud, and abuse, 8 and ensure that any technology platform used for the program 9 meets the states highest security requirements, including 10 compliance. 11 f. Conduct audits or other reviews necessary to properly 12 administer the program. 13 g. Adopt rules for the administration of the fund and 14 accounts within the fund. 15 6. a. For each pupil approved for an education savings 16 account payment, the department of education or third-party 17 entity shall establish an individual account for that pupil 18 in the education savings account fund. The amount of the 19 pupils education savings account payment shall be deposited 20 into the pupils individual account on July 15 or thirty days 21 following submission of the application, whichever is later, 22 and such amount shall be immediately available for the payment 23 of qualified educational expenses incurred by the parent or 24 guardian for the pupil during that fiscal year using a payment 25 method authorized under subsection 5. 26 b. A nonpublic school or other provider of qualified 27 educational expenses that accepts payment from a parent or 28 guardian using funds from a pupils individual account in the 29 fund shall not refund, rebate, or share any portion of such 30 payment with the parent, guardian, or pupil. 31 c. Moneys remaining in a pupils individual account 32 upon conclusion of the fiscal year shall remain in the 33 pupils individual account for the payment of qualified 34 educational expenses in future fiscal years during which the 35 -6- LSB 1174SV (1) 90 md/jh 6/ 16
S.F. 94 pupil participates in the program until the pupil becomes 1 ineligible under the program or until the remaining amounts are 2 transferred to the state general fund under subsection 8. 3 7. A person who makes a false claim for the purpose of 4 obtaining an education savings account payment or who knowingly 5 receives the payment or makes a payment from an individual 6 account within the fund without being legally entitled to do 7 so is guilty of a fraudulent practice under chapter 714. The 8 false claim for an education savings account or a payment from 9 an individual account shall be disallowed. The department of 10 education or third-party entity shall also close the pupils 11 individual account in the fund and transfer any remaining 12 moneys in the account for deposit in the general fund of the 13 state. If the improperly obtained amounts have been disbursed 14 from the applicable individual account, the department of 15 education or third-party entity shall recover such amounts 16 from the parent or guardian, including by initiating legal 17 proceedings to recover such amounts, if necessary. A parent or 18 guardian who commits a fraudulent practice under this section 19 is prohibited from participating in the education savings 20 account program in the future. 21 8. Moneys remaining in a pupils individual account when the 22 pupil graduates from high school or turns twenty years of age, 23 whichever occurs first, shall be transferred by the department 24 of education for deposit in the general fund of the state. 25 9. a. A parent may appeal to the state board of education 26 any administrative decision the department of education or 27 third-party entity makes pursuant to this section, including 28 but not limited to determinations of eligibility, allowable 29 expenses, and removal from the program. The department or 30 third-party entity shall notify the parent or guardian in 31 writing of the appeal process at the same time the department 32 notifies the parent or guardian of the administrative decision. 33 The state board of education shall establish the appeals 34 process consistent with chapter 17A and shall post such appeal 35 -7- LSB 1174SV (1) 90 md/jh 7/ 16
S.F. 94 process information on the state board of educations internet 1 site. 2 b. The state board of education shall refer cases of 3 substantial misuse of education savings account program funds 4 to the attorney general for the purpose of collection or for 5 the purpose of a criminal investigation if the state board of 6 education obtains evidence of fraudulent use of an account. 7 10. a. This section shall not be construed to authorize 8 the state or any political subdivision of the state to exercise 9 authority over any nonpublic school or construed to require a 10 nonpublic school to modify its academic standards for admission 11 or educational program in order to receive payment from a 12 parent or guardian using funds from a pupils account in the 13 education savings account fund. 14 b. This section shall not be construed to expand the 15 authority of the state or any political subdivision of the 16 state to impose regulations upon any nonpublic school that are 17 not necessary to implement this section. 18 c. A nonpublic school that accepts payment from a parent or 19 guardian using funds from a pupils account in the education 20 savings account fund is not an agent of this state or of a 21 political subdivision of this state. 22 d. Rules adopted by the department of education to implement 23 this section that impose an undue burden on a nonpublic school 24 are invalid. 25 e. A nonpublic school that accepts payment from a parent or 26 guardian using funds from a pupils account in the education 27 savings account fund shall be given the maximum freedom 28 possible to provide for the educational needs of the schools 29 students, consistent with state and federal law. 30 11. a. Each pupil participating in the education savings 31 account program is required to take all applicable state and 32 federally required student assessments and the results of 33 those assessments shall be provided to the pupils parents or 34 guardians and reported to the department of education. 35 -8- LSB 1174SV (1) 90 md/jh 8/ 16
S.F. 94 b. The department of education shall compile all such 1 reported assessment results in order to analyze student 2 proficiency and academic progress among those pupils 3 participating in the program, including analysis of graduation 4 rates, proficiency, and progress based on grade level, 5 gender, race, and household income level. The results of the 6 departments analysis shall be included in the annual condition 7 of education report. 8 Sec. 8. Section 422.7, Code 2023, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 44. Subtract, to the extent included, the 11 amount of an education savings account payment under section 12 257.11B received by the taxpayer for payment of qualified 13 educational expenses. 14 Sec. 9. EMERGENCY RULES. The department of education 15 may adopt emergency rules under section 17A.4, subsection 3, 16 and section 17A.5, subsection 2, paragraph b, to implement 17 the provisions of the section of this Act enacting section 18 256.9, subsection 66, and section 257.11B, and the rules shall 19 be effective immediately upon filing unless a later date is 20 specified in the rules. Any rules adopted in accordance with 21 this section shall also be published as a notice of intended 22 action as provided in section 17A.4. 23 Sec. 10. EFFECTIVE DATE. This division of this Act, being 24 deemed of immediate importance, takes effect upon enactment. 25 Sec. 11. RETROACTIVE APPLICABILITY. The following applies 26 retroactively to tax years beginning on or after January 1, 27 2023: 28 The section of this division of this Act enacting section 29 422.7, subsection 44. 30 DIVISION III 31 SCHOOL DISTRICT CATEGORICAL FUNDING 32 Sec. 12. Section 257.10, subsection 9, paragraph d, Code 33 2023, is amended to read as follows: 34 d. For the budget year beginning July 1, 2009, the use 35 -9- LSB 1174SV (1) 90 md/jh 9/ 16
S.F. 94 of the funds calculated under this subsection shall comply 1 with the requirements of chapter 284 and shall be distributed 2 to teachers pursuant to section 284.3A . For the budget year 3 beginning July 1, 2010, and succeeding budget years, the use 4 of the funds calculated under this subsection or available for 5 use as provided in subsection 10, paragraph d , subsection 12, 6 paragraph d , or section 257.46, subsection 3, shall comply 7 with the requirements of chapter 284 and shall be distributed 8 to teachers pursuant to section 284.3A . 9 Sec. 13. Section 257.10, subsection 10, paragraph d, Code 10 2023, is amended to read as follows: 11 d. The use of the funds calculated under this subsection 12 and any amount designated for professional development purposes 13 from the school districts flexibility account under section 14 298A.2, subsection 2 , shall comply with the requirements of 15 chapter 284 . If all professional development requirements of 16 chapter 284 are met and funds received under this subsection 17 remain unexpended and unobligated at the end of a fiscal year 18 beginning on or after July 1, 2017, the school district may 19 transfer all or a portion of such unexpended and unobligated 20 funds for deposit in the school districts flexibility account 21 established under section 298A.2, subsection 2 . At the end 22 of a fiscal year beginning on or after July 1, 2022, the 23 school district may use all or a portion of funds under this 24 subsection for the purposes authorized under subsection 9, 25 paragraph d . 26 Sec. 14. Section 257.10, subsection 12, paragraph d, Code 27 2023, is amended to read as follows: 28 d. For the budget year beginning July 1, 2014, and 29 succeeding budget years, the use of the funds calculated under 30 this subsection shall comply with the requirements of chapter 31 284 and shall be distributed to teachers pursuant to section 32 284.15 . The funds shall be used only to increase the payment 33 for a teacher assigned to a leadership role pursuant to a 34 framework or comparable system approved pursuant to section 35 -10- LSB 1174SV (1) 90 md/jh 10/ 16
S.F. 94 284.15 ; to increase the percentages of teachers assigned to 1 leadership roles; to increase the minimum teacher starting 2 salary to thirty-three thousand five hundred dollars; to 3 cover the costs for the time mentor and lead teachers are not 4 providing instruction to students in a classroom; for coverage 5 of a classroom when an initial or career teacher is observing 6 or co-teaching with a teacher assigned to a leadership role; 7 for professional development time to learn best practices 8 associated with the career pathways leadership process; and for 9 other costs associated with a framework or comparable system 10 approved by the department of education under section 284.15 11 with the goals of improving instruction and elevating the 12 quality of teaching and student learning. If all requirements 13 for the school district for the use of funds calculated 14 under this subsection are met and funds received under this 15 subsection remain unexpended and unobligated at the end of a 16 fiscal year beginning on or after July 1, 2020, the school 17 district may transfer all or a portion of such unexpended 18 and unobligated funds for deposit in the school districts 19 flexibility account established under section 298A.2, 20 subsection 2 . At the end of a fiscal year beginning on or after 21 July 1, 2022, the school district may use all or a portion of 22 funds under this subsection for the purposes authorized under 23 subsection 9, paragraph d . 24 Sec. 15. Section 257.46, subsection 3, Code 2023, is amended 25 to read as follows: 26 3. If any portion of the gifted and talented program budget 27 remains unexpended at the end of the budget year, the remainder 28 shall be carried over to the subsequent budget year and added 29 to the gifted and talented program budget for that year. At 30 the end of a fiscal year beginning on or after July 1, 2022, 31 the school district may use all or a portion of funds for the 32 purposes authorized under subsection 9, paragraph d . 33 Sec. 16. EFFECTIVE DATE. This division of this Act, being 34 deemed of immediate importance, takes effect upon enactment. 35 -11- LSB 1174SV (1) 90 md/jh 11/ 16
S.F. 94 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanations substance by the members of the general assembly. 3 This bill relates to education programs and funding by 4 establishing an education savings account program and modifying 5 certain school district categorical funding supplements. 6 DIVISION I SHORT TITLE. Division I provides that the bill 7 shall be known and may be cited as the Students First Act. 8 DIVISION II EDUCATION SAVINGS ACCOUNT PROGRAM. Division 9 II of the bill establishes an education savings account program 10 for school budget years beginning on or after July 1, 2023, for 11 the payment of qualified educational expenses incurred by the 12 parent or guardian of an eligible pupil. 13 For the school budget year beginning July 1, 2023, the 14 following pupils who attend a nonpublic school for that school 15 budget year shall be eligible to receive an education savings 16 account payment: (1) a resident pupil who is eligible to 17 enroll in kindergarten; (2) a resident pupil who is eligible 18 to enroll in grades 1 through 12 and was not enrolled in a 19 nonpublic school for the immediately preceding school year; 20 (3) a resident pupil who is eligible to enroll in grades 1 21 through 12 and was enrolled in a nonpublic school for the 22 immediately preceding school year if the pupils household has 23 an annual income less than or equal to 300 percent of the most 24 recently revised poverty income guidelines. For the school 25 budget year beginning July 1, 2024, the following pupils who 26 attend a nonpublic school for that school budget year shall be 27 eligible to receive an education savings account payment: (1) 28 a resident pupil who is eligible to enroll in kindergarten; 29 (2) a resident pupil who is eligible to enroll in grades 1 30 through 12 and was not enrolled in a nonpublic school for the 31 immediately preceding school year; (3) a resident pupil who 32 is eligible to enroll in grades 1 through 12 and was enrolled 33 in a nonpublic school for the immediately preceding school 34 year if the pupils household has an annual income less than 35 -12- LSB 1174SV (1) 90 md/jh 12/ 16
S.F. 94 or equal to 400 percent of the most recently revised poverty 1 income guidelines; and (4) a resident pupil who received an 2 education savings account payment in the immediately preceding 3 school budget year. For school budget years beginning on or 4 after July 1, 2025, resident pupils eligible to enroll in 5 kindergarten through grade 12 who attend a nonpublic school for 6 the applicable school budget year shall be eligible to receive 7 an education savings account payment. 8 On or after January 1, but on or before June 30 preceding 9 the school year for which the education savings account payment 10 is requested, the parent or guardian of an eligible pupil 11 may request a payment by submitting an application to the 12 department of education. 13 Within 30 days following submission of an application, the 14 department of education must notify the parent or guardian of 15 each pupil approved for the following school year and specify 16 the amount of the education savings account payment for the 17 pupil, if known at the time of the notice. Education savings 18 account payments shall only be approved for one school year and 19 applications must be submitted each year. 20 The bill creates an education savings account fund in 21 the state treasury under the control of the department of 22 education consisting of moneys appropriated to the department 23 of education for the purpose of providing education savings 24 account payments. For the fiscal year commencing July 1, 2023, 25 and each succeeding fiscal year, the bill appropriates from the 26 general fund of the state to the department of education for 27 deposit in the fund the amount necessary to pay all education 28 savings account payments approved for that fiscal year. For 29 each pupil approved, the department of education must establish 30 an individual account for that pupil in the fund. The amount 31 of the pupils payment is deposited into the pupils account 32 on July 15 or 30 days after submission of the application, 33 whichever is later, and such amount is available for use by 34 parents and guardians for the payment of qualified educational 35 -13- LSB 1174SV (1) 90 md/jh 13/ 16
S.F. 94 expenses, as defined in the bill, incurred by the parent or 1 guardian for the pupil during that fiscal year. The amount of 2 the education savings account payment is equal to the regular 3 program state cost per pupil for the same school budget year. 4 The bill authorizes the department to contract with a 5 third-party entity for administration of the program and 6 includes applicable references to such a third-party entity. 7 Parents and guardians shall first use education savings 8 account payments for all qualified educational expenses that 9 are tuition and fees for which the parent or guardian is 10 responsible for payment at the pupils nonpublic school prior 11 to using the education savings account for other qualified 12 educational expenses. 13 The bill provides that moneys remaining in a pupils account 14 upon the conclusion of the fiscal year shall remain in the 15 pupils account in the fund for the payment of qualified 16 educational expenses in future fiscal years during which the 17 pupil participates in the program until the pupil becomes 18 ineligible or until the remaining amounts are required to be 19 transferred to the general fund of the state under the bill. 20 For each pupil with a positive balance in the pupils account 21 in the fund upon graduation from high school or reaching 22 20 years of age, whichever occurs first, the department of 23 education is required to transfer such remaining moneys for 24 deposit in the general fund of the state. 25 The bill establishes procedures for parent or guardian 26 appeals to the state board of education and provides that a 27 person who makes a false claim for the purpose of obtaining an 28 education savings account payment or who knowingly receives the 29 payment or makes a payment from an account in the fund without 30 being legally entitled to do so is guilty of a fraudulent 31 practice and is subject to a criminal penalty. The bill 32 directs the department of education to recover program payments 33 and amounts improperly awarded or paid and requires the closure 34 of the pupils account and transfer of all remaining moneys to 35 -14- LSB 1174SV (1) 90 md/jh 14/ 16
S.F. 94 the general fund of the state. 1 The bill requires the department of education to compile all 2 state and federally required student assessment results for 3 participating pupils in order to analyze student proficiency 4 and academic progress among those pupils participating in the 5 program, including analysis of graduation rates, proficiency, 6 and progress based on grade level, gender, race, and household 7 income level. The results of the departments analysis shall 8 be included in the annual condition of education report. 9 The bill also modifies the calculation of the teacher 10 salary supplement district cost, the professional development 11 supplement district cost, the early intervention supplement 12 district cost, and the teacher leadership supplement district 13 cost under Code section 257.10. Under the bill, each such 14 supplement amount shall be calculated, in part, by multiplying 15 the applicable supplement district cost per pupil by the sum 16 of the school districts budget enrollment plus the number 17 of resident pupils in the school district that received an 18 education savings account payment under the bill for the base 19 year. 20 Division II of the bill takes effect upon enactment. The 21 bill also authorizes the department of education to adopt 22 emergency rules to implement the program. 23 The bill provides that an education savings account payment 24 received by a taxpayer is not taxable income for purposes 25 of state individual income taxation. This provision of the 26 bill applies retroactively to tax years beginning on or after 27 January 1, 2023. 28 DIVISION III SCHOOL DISTRICT CATEGORICAL FUNDING. 29 Division III of the bill authorizes school districts to use all 30 or a portion of funds at the end of any fiscal year beginning 31 on or after July 1, 2022, from the professional development 32 categorical supplement, the teacher leadership categorical 33 supplement, or the gifted and talented program for teacher 34 salary categorical supplement purposes under the salary system 35 -15- LSB 1174SV (1) 90 md/jh 15/ 16
S.F. 94 requirements of Code section 284.3A. 1 Division III of the bill takes effect upon enactment. 2 -16- LSB 1174SV (1) 90 md/jh 16/ 16