Page 1, line
14, strike "complete"
Line 15,
after "required" insert "or recommended"
Page 3,
after line 19, insert:
"Sec. 2. Section
15-2402, Arizona Revised Statutes, is amended to read:
START_STATUTE15-2402. Arizona
empowerment scholarship accounts; funds
A. Arizona
empowerment scholarship accounts are established to provide options for the
education of students in this state.
B. To
enroll a qualified student for an Arizona empowerment
scholarship account, the parent of the qualified student must sign an agreement
to do all of the following:
1. Use
a portion of the Arizona empowerment scholarship account
monies allocated annually to provide an education for the qualified student in
at least the subjects of reading, grammar, mathematics, social studies and
science, unless the Arizona empowerment scholarship
account is allocated monies according to a transfer schedule other than
quarterly transfers pursuant to section 15‑2403, subsection F.
2. Not
enroll the qualified student in a school district or charter school and release
the school district from all obligations to educate the qualified student.
This paragraph does not relieve the school district or charter school that the
qualified student previously attended from the obligation to conduct an
evaluation pursuant to section 15‑766.
3. Not
accept a scholarship from a school tuition organization pursuant to title 43
concurrently with an Arizona empowerment scholarship
account for the qualified student in the same year a parent signs the agreement
pursuant to this section.
4. Use
the money monies deposited in the
qualified student's Arizona empowerment scholarship account only for the
following expenses of the qualified student:
(a) Tuition
or fees at a qualified school.
(b) Textbooks
required by a qualified school.
(c) If
the qualified student meets any of the criteria specified in section 15‑2401,
paragraph 6 7, subdivision
(a), item (i), (ii) or (iii) as determined by a school district or by an
independent third party pursuant to section 15‑2403, subsection I, the
qualified student may use the following additional services:
(i) Educational
therapies from a licensed or accredited practitioner or provider.
(ii) A
licensed or accredited paraprofessional or educational aide.
(iii) Tuition
for vocational and life skills education approved by the department.
(iv) Associated
goods and services that include educational and
psychological evaluations, assistive technology rentals and braille translation
goods and services approved by the department.
(d) Tutoring
or teaching services provided by an individual or facility accredited by a
state, regional or national accrediting organization.
(e) Curricula and supplementary materials.
(f) Tuition
or fees for a nonpublic online learning program.
(g) Fees
for a nationally standardized norm-referenced achievement test, an advanced
placement examination or any exams related to college or university admission.
(h) Contributions
to a Coverdell education savings account established pursuant to 26 United
States Code section 530 for the benefit of the qualified student, except that money monies used for elementary or
secondary education expenses must be for expenses otherwise allowed under this
section.
(i) Tuition
or fees at an eligible postsecondary institution.
(j) Textbooks
required by an eligible postsecondary institution.
(k) Fees
for management of to manage the Arizona empowerment scholarship account.
(l) Services
provided by a public school, including individual classes and extracurricular
programs.
(m) Insurance
or surety bond payments.
(n) Uniforms
purchased from or through a qualified school.
(o) Beginning January 1, 2017, If the qualified student meets the
criteria specified in section 15‑2401, paragraph 7, subdivision (a), item
(i), (ii) or (iii) and if the qualified student is in the second year prior to
the final year of a contract executed pursuant to this article, costs
associated with an annual education plan conducted by an independent evaluation
team. The department shall prescribe minimum qualifications for independent
evaluation teams pursuant to this subdivision and factors that teams must use
to determine whether the qualified student shall be eligible to continue to
receive monies pursuant to this article through the school year in which the
qualified student reaches twenty‑two years of age. An independent
evaluation team that provides an annual education plan pursuant to this
subdivision shall submit a written report that summarizes the results of the
evaluation to the parent of the qualified student and to the department on or
before July 31. The written report submitted by the independent
evaluation team is valid for one year. If the department determines
that the qualified student meets the eligibility criteria prescribed in the
annual education plan, the qualified student is eligible to continue to receive
monies pursuant to this article until the qualified student reaches twenty‑two
years of age, subject to annual review. A parent may appeal the
department's decision pursuant to title 41, chapter 6, article
10. As an addendum to a qualified student's final-year contract, the
department shall provide the following written information to the parent of the
qualified student:
(i) That
the qualified student will not be eligible to continue to receive monies
pursuant to this article unless the results of an annual education plan
conducted pursuant to this subdivision demonstrate that the qualified student
meets the eligibility criteria prescribed in the annual education plan.
(ii) That
the parent is entitled to obtain an annual education plan pursuant to this
subdivision to determine whether the qualified student meets the eligibility
criteria prescribed in the annual education plan.
(iii) A
list of independent evaluation teams that meet the minimum qualifications
prescribed by the department pursuant to this subdivision.
5. Not
file an affidavit of intent to homeschool pursuant to section 15‑802,
subsection B, paragraph 2 or 3.
6. Not
use monies deposited in the qualified student's account for any of the
following:
(a) Computer
hardware or other technological devices, except as otherwise
allowed under paragraph 4, subdivision (c) of this
subsection.
(b) Transportation
of the pupil.
(c) Consumable
educational supplies, including paper, pens or markers.
C. In
exchange for the parent's agreement pursuant to subsection B of this section,
the department shall transfer from the monies that would otherwise be allocated
to a recipient's prior school district, or if the child is currently eligible
to attend kindergarten, the monies that the department determines would
otherwise be allocated to a recipient's expected school district of attendance,
to the treasurer for deposit into an Arizona empowerment scholarship account an
amount that is equivalent to ninety percent of the sum of the base support
level and additional assistance prescribed in sections 15‑185 and 15‑943
for that particular student if that student were attending a charter school. The department may retain up to five percent of the sum of the base
support level and additional assistance prescribed in sections 15‑185 and
15‑943 for each student with an empowerment scholarship account for
deposit in the department of education empowerment scholarship account fund
established in subsection D of this section, out of which the department shall
transfer one percent of the sum of the base support level and additional
assistance prescribed in sections 15‑185 and 15‑943 for each
student with an empowerment scholarship account to the state treasurer for
deposit in the state treasurer empowerment scholarship account fund established
in subsection E of this section.
D. The
department of education empowerment scholarship account fund is established
consisting of monies retained by the department pursuant to
subsection C of this section appropriated by the
legislature. The department shall administer the
fund. Monies in the fund are subject to legislative
appropriation. Monies in the fund shall be used for the department's
costs in administering Arizona empowerment scholarship
accounts under this chapter. Monies in the fund are exempt from the
provisions of section 35‑190 relating to lapsing of appropriations. If
the number of Arizona empowerment scholarship accounts
significantly increases after fiscal year 2012‑2013 2020‑2021, the department may request an increase in the
amount appropriated to the fund in any subsequent fiscal year in the budget
estimate submitted pursuant to section 35‑113. The
department shall list monies in the fund as a separate line item in its budget
estimate.
E. The
state treasurer empowerment scholarship account fund is established consisting
of monies transferred by the department to the state treasurer
pursuant to subsection C of this section appropriated by the
legislature. The state treasurer shall administer the fund. Monies in
the fund shall be used for the state treasurer's costs in administering the Arizona empowerment scholarship accounts under this
chapter. If the number of Arizona empowerment
scholarship accounts significantly increases after fiscal year 2013‑2014 2020‑2021, the state treasurer may request an increase
in the amount appropriated to the fund in any subsequent fiscal year in the
budget estimate submitted pursuant to section 35‑113. Monies
in the fund are subject to legislative appropriation. Monies in the fund are
exempt from the provisions of section 35‑190 relating to lapsing of
appropriations. The state treasurer shall list monies
in the fund as a separate line item in its budget estimate.
F. A
parent must renew the qualified student's Arizona
empowerment scholarship account on an annual basis. Notwithstanding
any changes to the student's multidisciplinary evaluation team plan, a student
who has previously qualified for an Arizona empowerment
scholarship account shall remain remains eligible
to apply for renewal until the student finishes high school.
G. A
signed agreement under this section constitutes school attendance required by
section 15‑802.
H. A
qualified school or a provider of services purchased pursuant to subsection B,
paragraph 4 of this section may not share, refund or rebate any Arizona
empowerment scholarship account monies with the parent or qualified student in
any manner.
I. On
the qualified student's graduation from a postsecondary institution or after
any period of four consecutive years after high school graduation in which the
student is not enrolled in an eligible postsecondary institution, the qualified
student's Arizona empowerment scholarship account shall be closed and any
remaining funds monies shall be
returned to the state.
J. Monies
received pursuant to this article do not constitute taxable income to the
parent of the qualified student. END_STATUTE
Sec. 3. Section
15-2403, Arizona Revised Statutes, is amended to read:
START_STATUTE15-2403. Arizona
empowerment scholarship accounts; administration; appeals; audit; rules; policy
handbook
A. The
treasurer may contract with private financial management firms to manage
Arizona empowerment scholarship accounts.
B. The
department shall conduct or contract for annual audits of Arizona
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 Arizona
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 to the state board of education
any administrative decision the department makes pursuant
to title 41, chapter 6, this article, 10 including determinations
of allowable expenses, removal from the program or enrollment eligibility. The department shall notify the parent in writing that the
parent may appeal any administrative decision under this article and the
process by which the parent may appeal at the same time the department notifies
the parent of an administrative decision under this article. The state board
of education shall establish an appeals process, and the department shall post
this information on the department's website in the same location as the policy
handbook developed pursuant to subsection J of this section.
E. The
department state board of education
may refer cases of substantial misuse of monies to the attorney general for the
purpose of collection or for the purpose of a criminal investigation if the department state board of education
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
in the Arizona 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 to operate the Arizona
empowerment scholarship account.
G. The
department shall accept applications between July 1 and June 30 of each year.
The department shall enroll and issue an award letter to eligible applicants
within forty-five days after receipt of a completed application and all
required documentation. 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 Arizona 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 pursuant to section 15‑2402,
subsection C for each qualified student.
H. The
department state board of education
may adopt rules and policies necessary for the administration of
to administer Arizona empowerment scholarship accounts,
including rules and policies:
1. For
establishing an appeals process pursuant to subsection D of this section.
1. 2. Policies
For conducting or contracting for examinations of the use of account monies.
2. 3. For conducting
or contracting for random, quarterly and annual reviews of accounts.
3. 4. For
establishing or contracting for the establishment of an online anonymous fraud
reporting service.
4. 5. For establishing
an anonymous telephone hotline for fraud reporting.
5. 6. 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 whether a qualified
student is eligible to receive educational therapies or services pursuant to
section 15‑2402, subsection B, paragraph 4, subdivision (c).
J. On or before July 1
of each year, the department shall develop an applicant and participant
handbook that includes information relating to policies and processes of
Arizona empowerment scholarship accounts. The policy handbook shall comply
with the rules adopted by the state board of education pursuant to this
section. the department shall post the handbook on its website. END_STATUTE
Sec. 4. State board of education; Arizona empowerment scholarship
accounts; rulemaking
On or before
November 1, 2020, the state board of education shall adopt rules necessary to
administer Arizona empowerment scholarship accounts pursuant to section 15‑2403,
subsection H, Arizona Revised Statutes, as amended by this act. In
adopting rules, the state board of education shall work in cooperation with the
department of education and may use existing resources and policy documents to
guide the rulemaking process.
Sec. 5. Attorney general; written guidance; Arizona empowerment
scholarship accounts information; public records
On or before
August 1, 2020, the attorney general shall provide written guidance to the
department of education and the state board of education regarding what types
of information that is collected under title 15, chapter 19, Arizona Revised
Statutes, as amended by this act, are subject to public records requests under
state and federal law, including the family educational rights and privacy act
of 1974 (P.L. 93-380; 88 Stat. 57).
Sec. 6. Retroactivity
Sections 4
and 5 of this act apply retroactively to from and after the date on which this
act is filed with the secretary of state."
Amend title to conform
Bill
Number: S.B. 1224