Page 84, strike lines 5 through 42
Strike pages 85 and 86
Page 87, strike lines 1 through 26
Renumber to
conform
Page 88, strike lines 38 through 44
Page 89, strike lines 1 through 16
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conform
Page 130,
between lines 20 and 21, insert:
"Sec. 46. Section
15-2401, Arizona Revised Statutes, is amended to read:
START_STATUTE15-2401. Definitions
In this
chapter, unless the context otherwise requires:
1. "Annual
education plan" means an initial individualized evaluation and subsequent
annual reviews that are developed for a qualified student who meets the
criteria specified in paragraph 7, subdivision (a), item (i), (ii) or (iii) of
this section to determine ongoing annual eligibility through the school year in
which the qualified student reaches twenty-two years of age and whether
the student may be eligible pursuant to section 36-2981 and should be
referred for eligibility determination.
2. "Curriculum"
means a course of study for content areas or grade levels, including any
supplemental materials required or recommended by the curriculum, approved by
the department.
3. "Department"
means the department of education.
4. "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.
5. "Parent"
means a resident of this state who is the parent, stepparent or legal guardian
of a qualified student.
6. "Qualified
school" means a nongovernmental primary or secondary school or a preschool
for pupils with disabilities that is located in this state or, for qualified
students who reside within the boundaries of an Indian reservation in this
state, that is located in an adjacent state and that is within two miles of the
border of the state in which the qualified student resides, and that does not
discriminate on the basis of race, color or national origin.
7. "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 15-731
or 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 was
assigned a letter grade of D or F pursuant to section 15-241 for the most recent year in which letter grades were assigned or
who is currently eligible to attend kindergarten and who resides within the attendance boundary of a school that has been was assigned a letter grade of D
or F pursuant to section 15-241 for the most recent year
in which letter grades were assigned. A child who meets
the requirements of this item and who meets the income ELIGIBILITY requirements
for free and reduced-price lunches under the national school lunch and
child nutrition acts (42 United States Code sections 1751 through 1793) is not
subject to subdivision (b) of this paragraph.
(v) A
previous recipient of a scholarship issued pursuant to section 15-891 or
this section, unless the qualified student's parent has been removed from
eligibility in the program for failure to comply pursuant to section 15-2403,
subsection C.
(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 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.
(viii) A
child who was a ward of the juvenile court and who achieved permanency through
adoption or permanent guardianship.
(ix) A
child who is the sibling of a current or previous Arizona empowerment
scholarship account recipient or of an eligible qualified student who accepts
the terms of and enrolls in an Arizona empowerment scholarship account.
(x) A
child who resides within the boundaries of an Indian reservation in this state
as determined by the department of education or a tribal government.
(xi) A
child of a parent who is legally blind or deaf or hard of hearing as defined in
section 36-1941.
(b) And,
except as provided in subdivision (a), item items (iv) and (vi) 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 forty-five days of the current or prior fiscal year and who transferred from a
governmental primary or secondary school under a contract to participate in an
Arizona empowerment scholarship account. Kindergarten students
who are enrolled in Arizona online instruction must receive two hundred hours
of logged instruction to be eligible pursuant to this item. First,
second and third grade students who are enrolled in Arizona online instruction
must receive four hundred hours of logged instruction to be eligible pursuant
to this item. Fourth, fifth and sixth grade students who are enrolled in
Arizona online instruction must receive five hundred hours of logged
instruction to be eligible pursuant to this item. Seventh and eighth grade
students who are enrolled in Arizona online instruction must receive five
hundred fifty hours of logged instruction to be eligible pursuant to this
item. High school students who are enrolled in Arizona online instruction must
receive five hundred hours of logged instruction to be eligible pursuant to
this item.
(ii) Previously
participated in an Arizona empowerment scholarship account.
(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 before
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 before 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 or attended a program for preschool children with
disabilities.
(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.
8. "Treasurer"
means the office of the state treasurer. END_STATUTE
Sec. 47. 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
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 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,
including and up to any amount not covered by insurance if the expense is
partially paid by a health insurance policy for the qualified student.
(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) Tuition
or fees at an eligible postsecondary institution.
(i) Textbooks
required by an eligible postsecondary institution.
(j) Fees
to manage the Arizona empowerment scholarship account.
(k) Services
provided by a public school, including individual classes and extracurricular
programs.
(l) Insurance
or surety bond payments.
(m) Uniforms
purchased from or through a qualified school.
(n) 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.
D. The
department of education empowerment scholarship account fund is established
consisting of monies 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 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 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 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.
G. Notwithstanding
any changes to the student's multidisciplinary evaluation team plan, a student
who has previously qualified for an Arizona empowerment scholarship account
remains eligible to apply for renewal until the student finishes high school.
H. If
a parent does not renew the qualified student's Arizona empowerment scholarship
account for a period of three academic years, the department shall notify the
parent that the qualified student's account will be closed in sixty calendar
days. The notification must be sent through certified mail, email
and telephone, if applicable. The parent has sixty calendar days to renew the
qualified student's Arizona empowerment scholarship account. If the
parent chooses not to renew or does not respond in sixty calendar days, the
department shall close the account and any remaining monies shall be returned
to the state.
I. A
signed agreement under this section constitutes school attendance required by
section 15-802.
J. 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.
K. Notwithstanding subsection H of this section, 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, but not
before this time as long as the account holder continues using a portion of
account monies for eligible expenses each year and is in good standing,
the qualified student's Arizona empowerment scholarship account shall be closed
and any remaining monies shall be returned to the state.
L. Monies
received pursuant to this article do not constitute taxable income to the
parent of the qualified student. END_STATUTE
Sec. 48. 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 to the state board of education any administrative decision
the department makes pursuant to this article, 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
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 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 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 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 thirty 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 pursuant to section 15-2402, subsection C for each
qualified student.
H. The
state board of education may adopt rules and policies necessary to administer
Arizona empowerment scholarship accounts, including rules and policies:
1. For
establishing an appeals process pursuant to subsection D of this section.
2. For
conducting or contracting for examinations of the use of account monies.
3. For
conducting or contracting for random, quarterly and annual reviews of accounts.
4. For
establishing or contracting for the establishment of an online anonymous fraud
reporting service.
5. For
establishing an anonymous telephone hotline for fraud reporting.
6. 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 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.
K. except
for cases in which the attorney general determines that a parent or account
holder has committed fraud, any expenditure from an Arizona empowerment
scholarship account for a purchase that is deemed ineligible pursuant to
section 15-2402 and that is subsequently repaid by the parent or account holder
shall be credited back to the Arizona empowerment scholarship account balance
within thirty days after the receipt of payment.
L. If,
in response to an appeal of an administrative decision made by the department,
the state board of education issues a stay of an Arizona empowerment scholarship
account suspension pursuant to rules adopted by the board, the department may
not withhold funding or contract renewal for the account holder on account of
the appealed administrative decision during the stay unless directed by the
board to do so."
END_STATUTE
Renumber to
conform
Page 140,
between lines 7 and 8, insert:
"Sec. 54. Section
41-1092.02, Arizona Revised Statutes, is amended to read:
START_STATUTE41-1092.02. Appealable
agency actions; application of procedural rules; exemption from article
A. This
article applies to all contested cases as defined in section 41-1001 and
all appealable agency actions, except contested cases with or appealable agency
actions of:
1. The
state department of corrections.
2. The
board of executive clemency.
3. The
industrial commission of Arizona.
4. The
Arizona corporation commission.
5. The
Arizona board of regents and institutions under its jurisdiction.
6. The
state personnel board.
7. The
department of juvenile corrections.
8. The
department of transportation, except as provided in title 28, chapter 30,
article 2.
9. The
department of economic security except as provided in section 46-458.
10. The
department of revenue regarding:
(a) Income
tax or withholding tax.
(b) Any
tax issue related to information associated with the reporting of income tax or
withholding tax unless the taxpayer requests in writing that this article apply
and waives confidentiality under title 42, chapter 2, article 1.
11. The
board of tax appeals.
12. The
state board of equalization.
13. The
state board of education, but only in connection with contested cases and
appealable agency actions related to either:
(a) Applications
for issuance or renewal of a certificate and discipline of certificate holders
pursuant to sections 15-203, 15-534, 15-534.01, 15-535,
15-545 and 15-550.
(b) The
Arizona empowerment scholarship account program pursuant to title 15, chapter
19.
14. The
board of fingerprinting.
15. The
department of child safety except as provided in sections 8-506.01 and 8-811.
B. Unless
waived by all parties, an administrative law judge shall conduct all hearings
under this article, and the procedural rules set forth in this article and
rules made by the director apply.
C. Except
as provided in subsection A of this section:
1. A
contested case heard by the office of administrative hearings regarding taxes
administered under title 42 shall be subject to section 42-1251.
2. A
final decision of the office of administrative hearings regarding taxes
administered under title 42 may be appealed by either party to the director of
the department of revenue, or a taxpayer may file and appeal directly to the
board of tax appeals pursuant to section 42-1253.
D. Except
as provided in subsections A, B, E, F and G of this section and notwithstanding
any other administrative proceeding or judicial review process established in
statute or administrative rule, this article applies to all appealable agency
actions and to all contested cases.
E. Except
for a contested case or an appealable agency action regarding unclaimed
property, sections 41-1092.03, 41-1092.08 and 41-1092.09 do
not apply to the department of revenue.
F. The
board of appeals established by section 37-213 is exempt from:
1. The
time frames for hearings and decisions provided in section 41-1092.05,
subsection A, section 41-1092.08 and section 41-1092.09.
2. The
requirement in section 41-1092.06, subsection A to hold an informal
settlement conference at the appellant's request if the sole subject of an
appeal pursuant to section 37-215 is the estimate of value reported in an
appraisal of lands or improvements.
G. Auction
protest procedures pursuant to title 37, chapter 2, article 4.1 are exempt from
this article." END_STATUTE
Renumber to
conform
Amend title to conform
Bill
Number: H.B. 2898