Relating to the education savings account program, including the establishment and requirements of qualified nonpublic schools

This bill relates to the education savings account (ESA) program, including the establishment and requirements of qualified nonpublic schools. The education savings account program is a program that provides funds to pupils who attend nonpublic schools to pay for qualified educational expenses, including but not limited to tuition, tutoring or cognitive skill training fees, educational therapy costs, software expenses, and expenses related to course materials. The bill establishes a category of qualified nonpublic schools that must comply with public school standards of accountability and transparency, data reporting, accreditation standards, and teacher employment and licensing requirements. The bill amends the definition of “qualified education expense” to provide that only tuition and fees at a qualified nonpublic school are qualified educational expenses for purposes of the ESA program. The bill requires qualified nonpublic schools to report to the department of education the number of residents who applied for admission for purposes of participation in the ESA program and the number of resident students who were denied admission, including the reason for each denial; to report to the department the number of students participating in the ESA program who withdraw from the nonpublic school and reenter a public school during the school year, indicating whether the student’s return to a public school was voluntary; to refund ESA funds if a student participating in the ESA program withdraws from the school prior to the end of the semester; to not increase tuition or mandatory fees for a school year by a rate greater than the state percent of growth rate applicable to school districts for that school year; to annually report to the department the tuition and mandatory fee schedules for each grade level at each school that enrolls students participating in the ESA program; and to assume full responsibility for providing and administering any transportation services, instructional services, or materials managed by public schools for nonpublic school ESA participants. The bill requires the department of education to notify each school district of resident students who have been approved to participate in the ESA program no later than the date on which the parent or guardian of the student is notified of the student’s approval to participate in the program; to make available to the public and submit to the general assembly a report relating to tuition and mandatory fee schedules of qualified nonpublic schools; to require third-party entities and qualified firms of the ESA program to submit annual reports detailing ESA expenditures; to require third-party administrators or vendors of the ESA program to fully cooperate with the department and the office of auditor of state for performance audits of ESA expenditures; and ensure that any contract with a third-party administrator or vendor related to the ESA program meets the requirements in the bill. Lastly, the bill requires the university of northern Iowa to conduct an independent evaluation of the ESA program every five years.