HB2250 - 521R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 15-2401, Arizona Revised Statutes, is amended to read:

START_STATUTE15-2401. Definitions

In this chapter, unless the context otherwise requires:

1. "Curriculum" means a complete course of study for a particular content area or grade level, including any supplemental materials required by the curriculum.

2. "Department" means the department of education.

3. "Eligible postsecondary institution" means a community college as defined in section 15‑1401, a university under the jurisdiction of the Arizona board of regents or an accredited private postsecondary institution.

4. "Parent" means a resident of this state who is the parent or legal guardian of a qualified student.

5. "Qualified school" means a nongovernmental primary or secondary school or a preschool for pupils with disabilities that is located in this state and that does not discriminate on the basis of race, color or national origin.

6. "Qualified student" means a resident of this state who:

(a) Is any of the following:

(i) Identified as having a disability under section 504 of the rehabilitation act of 1973 (29 United States Code section 794).

(ii) Identified by a school district or by an independent third party pursuant to section 15‑2403, subsection I, as a child with a disability as defined in section 15‑761.

(iii) A child with a disability who is eligible to receive services from a school district under section 15‑763.

(iv) Attending a school or school district that has been assigned a letter grade of D or F pursuant to section 15‑241 or who is currently eligible to attend kindergarten and who resides within the attendance boundary of a school that has been assigned a letter grade of D or F pursuant to section 15‑241.

(v) A previous recipient of a scholarship issued pursuant to section 15‑891 or this section.

(vi) A child of a parent who is a member of the armed forces of the United States and who is on active duty or was killed in the line of duty. A child who meets the requirements of this item is not subject to subdivision (b) of this paragraph.

(vii) A child with a guardian who is a member of the armed forces of the United States and who is on active duty or was killed in the line of duty. A child who meets the requirements of this item is not subject to subdivision (b) of this paragraph.

(viii) A child who is a ward of the juvenile court and who is residing with a prospective permanent placement pursuant to section 8‑862 and the case plan is adoption or permanent guardianship.

(ix) A child who was a ward of the juvenile court and who achieved permanency through adoption or permanent guardianship.

(x) A child who is the sibling of a current or previous empowerment scholarship account recipient.

(xi) A child who is the sibling of a first‑time empowerment scholarship account recipient and who submitted an application for an empowerment scholarship account during the same application period as the other sibling.

(b) And, except as provided in subdivision (a), items (vi) and (vii) of this paragraph, who meets any of the following requirements:

(i) Attended a governmental primary or secondary school as a full-time student as defined in section 15‑901 for at least the first one hundred days of the prior fiscal year and who transferred from a governmental primary or secondary school under a contract to participate in an empowerment scholarship account.

(ii) Previously participated in the empowerment scholarship account program.

(iii) Received a scholarship under section 43‑1505 and who continues to attend a qualified school if the student attended a governmental primary or secondary school as a full‑time student as defined in section 15-901 for at least ninety days of the prior fiscal year or one full semester prior to attending a qualified school.

(iv) Was eligible for an Arizona scholarship for pupils with disabilities and received monies from a school tuition organization pursuant to section 43‑1505 or received an Arizona scholarship for pupils with disabilities but did not receive monies from a school tuition organization pursuant to section 43‑1505 and who continues to attend a qualified school if the student attended a governmental primary or secondary school as a full‑time student as defined in section 15-901 for at least ninety days of the prior fiscal year or one full semester prior to attending a qualified school.

(v) Has not previously attended a governmental primary or secondary school but is currently eligible to enroll in a kindergarten program in a school district or charter school in this state.

(vi) Has not previously attended a governmental primary or secondary school but is currently eligible to enroll in a program for preschool children with disabilities in this state.

7. "Treasurer" means the office of the state treasurer. END_STATUTE

Sec. 2. Section 15-2403, Arizona Revised Statutes, is amended to read:

START_STATUTE15-2403. Empowerment scholarship accounts; administration; audit; rules

A. The treasurer may contract with private financial management firms to manage Arizona empowerment scholarship accounts with the supervision of the treasurer.

B. The department shall conduct or contract for annual audits of empowerment scholarship accounts to ensure compliance with section 15‑2402, subsection B, paragraph 4. The department shall also conduct or contract for random, quarterly and annual audits of empowerment scholarship accounts as needed to ensure compliance with section 15‑2402, subsection B, paragraph 4.

C. The department may remove any parent or qualified student from eligibility for an Arizona empowerment scholarship account if the parent or qualified student fails to comply with the terms of the contract or applicable laws, rules or orders or knowingly misuses monies or knowingly fails to comply with the terms of the contract with intent to defraud and shall notify the treasurer. The department shall notify the treasurer to suspend the account of a parent or qualified student and shall notify the parent or qualified student in writing that the account has been suspended and that no further transactions will be allowed or disbursements made. The notification shall specify the reason for the suspension and state that the parent or qualified student has ten days, not including weekends, to respond and take corrective action. If the parent or qualified student refuses or fails to contact the department, furnish any information or make any report that may be required for reinstatement within the ten-day period, the department may remove the parent or qualified student pursuant to this subsection.

D. A parent may appeal the department's decision pursuant to title 41, chapter 6, article 10.

E. The department may refer cases of substantial misuse of monies to the attorney general for investigation if the department obtains evidence of fraudulent use of an account.

F. The department shall make quarterly transfers of the amount calculated pursuant to section 15‑2402, subsection C to the treasurer for deposit into the empowerment scholarship account of each qualified student, except the department may make transfers according to another transfer schedule if the department determines a transfer schedule other than quarterly transfers is necessary for the operation of the empowerment scholarship account.

G. The department shall determine a period that is accept applications between July 1 and May 1 of each year during which it will accept applications for the following fiscal year. After January 1 of each year, the department shall issue a contract to eligible applicants within forty‑five days after receipt of a completed application and all required documentation, subject to the enrollment cap prescribed by law. On or before May 30 of each year, the department shall furnish to the joint legislative budget committee an estimate of the amount required to fund empowerment scholarship accounts for the following fiscal year. The department shall include in its budget request for the following fiscal year the amount estimated in section 15‑2402, subsection C for each qualified student.

H. The department may adopt rules and policies necessary for the administration of empowerment scholarship accounts, including:

1. Policies for conducting or contracting for examinations of the use of account monies.

2. Conducting or contracting for random, quarterly and annual reviews of accounts.

3. Establishing or contracting for the establishment of an online anonymous fraud reporting service.

4. Establishing an anonymous telephone hotline for fraud reporting.

5. Policies that require a surety bond or insurance for account holders.

I. The department shall contract with an independent third party for the purposes of determining if a qualified student is eligible to receive educational therapies or services pursuant to section 15‑2402, subsection B, paragraph 4, subdivision (c). END_STATUTE