Bill Text: AZ SB1281 | 2017 | Fifty-third Legislature 1st Regular | Introduced
Bill Title: Empowerment scholarship accounts; revisions
Spectrum: Partisan Bill (Republican 22-0)
Status: (Introduced - Dead) 2017-02-07 - Senate majority caucus: Do pass [SB1281 Detail]
Download: Arizona-2017-SB1281-Introduced.html
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REFERENCE TITLE: empowerment scholarship accounts; revisions |
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State of Arizona Senate Fifty-third Legislature First Regular Session 2017
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SB 1281 |
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Introduced by Senators Smith: Allen S, Barto, Borrelli, Burges, Fann, Farnsworth D, Kavanagh, Lesko, Petersen; Representatives Allen J, Bowers, Boyer, Cook, Finchem, Lawrence, Leach, Livingston, Nutt, Payne, Stringer, Townsend
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AN ACT
amending sections 15‑2401, 15‑2402 and 15‑2403, Arizona Revised Statutes; relating to Arizona empowerment scholarship accounts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-2401, Arizona Revised Statutes, is amended to read:
15-2401. 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. 1. "Curriculum" means a complete course of study for content areas or grade levels, including any supplemental materials required by the curriculum, approved by the department.
3. 2. "Department" means the department of education.
4. 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.
5. 4. "Parent" means a resident of this state who is the parent or legal guardian of a qualified student.
6. 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.
7. 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 15‑731 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 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 or school district 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, 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 empowerment scholarship account recipient or of an eligible qualified student who accepts the terms of and enrolls in the an empowerment scholarship program 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 pursuant to section 41‑1973, subsection C or deaf or hard of hearing pursuant to as defined in section 36‑1941.
(b) And, except as provided in subdivision (a), item (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 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. 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 the an 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 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. For the purposes of this item, a child is eligible to enroll in a kindergarten program if the child is under seven years of age.
8. 7. "Treasurer" means the office of the state treasurer.
Sec. 2. Section 15-2402, Arizona Revised Statutes, is amended to read:
15-2402. 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 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 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 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 empowerment scholarship account for the qualified student in during the same year a parent signs the agreement pursuant to this section time that the qualified student is actively enrolled in an empowerment scholarship account. The department may ask a qualified school to provide confirmation that a student is in compliance with this paragraph.
4. Use the money 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, 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 services that include educational and psychological evaluations, assistive technology rentals and braille translation 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.
(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, not to exceed two thousand dollars each year, to a Coverdell education savings account established pursuant to 26 United States Code section 530 or an education savings account established pursuant to 26 United States Code section 529 for the benefit of the qualified student, except that money 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 the 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.
(o) Costs associated with evaluations that are conducted pursuant to section 15‑2403, subsection I.
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.
(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. 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 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 empowerment scholarship accounts significantly increases after fiscal year 2012‑2013, 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.
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. The state treasurer shall administer the fund. Monies in the fund shall be used for the state treasurer's costs in administering the empowerment scholarship accounts under this chapter. If the number of empowerment scholarship accounts significantly increases after fiscal year 2013‑2014, 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.
F. A parent must renew the qualified student's 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 empowerment scholarship account shall remain eligible to apply for renewal until the student finishes graduates from high school, obtains a general equivalency diploma or reaches twenty-two years of age if the student continues to attend and be enrolled in a qualified school. The department may request confirmation of a qualified student's progress toward graduation from high school or the completion of a general equivalency diploma.
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 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.
K. The department shall allow an applicant for an empowerment scholarship account to identify all potentially applicable enrollment eligibility criteria during the application process and may not restrict the applicant to the identification of a single enrollment eligibility criterion.
Sec. 3. Section 15-2403, Arizona Revised Statutes, is amended to read:
15-2403. Empowerment scholarship accounts; administration; audit; policy handbook
A. The treasurer may and the department of education shall contract with private financial management firms to manage Arizona empowerment scholarship accounts.
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 any administrative decision made by the department pursuant to this article, including decisions regarding enrollment eligibility, pursuant to title 41, chapter 6, article 10. The department shall notify the parent of the parent's ability to appeal any administrative decision at the same time the parent is notified of any administrative decision.
E. The department 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 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. The department shall deposit monies into the empowerment scholarship account immediately or, if necessary, shall deposit retroactively prorated monies at the time the parent agrees to the terms and conditions prescribed in section 15‑2402. The department may not delay the deposit of monies into an empowerment scholarship account until a subsequent quarter.
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. If the department determines that an applicant is ineligible for an empowerment scholarship account because the applicant does not meet the requirements prescribed for an eligible student, the department shall notify the applicant of the specific statutory deficiencies of the application and the rationale for the denial of the application. 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 and procedures necessary for the administration of empowerment scholarship accounts. The policies and procedures adopted pursuant to this subsection shall be developed and implemented pursuant to the intent of the law and by giving students the most educational options available under the law, 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.
6. Policies that establish expense reporting, eligible expenses and application procedures. The policies regarding eligible expenses may not restrict the types or amount of curriculum choices made by parents for students.
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. The department shall develop and publish a policy handbook on or before July 1 of each year. The policy handbook shall include information pertaining to all policies adopted by the department to administer empowerment scholarship accounts. Only policies that are included in the handbook may be administered. The department may not publish the policy handbook, make any revisions or enforce any new policy or procedure before the completion of both of the following:
1. The collection of public comments for at least sixty days. The department shall consider and reasonably incorporate these public comments in the policy handbook.
2. The submission of a copy of the policy handbook and any revisions of the policy handbook to the governor, the president of the senate and the speaker of the house of representatives.
K. The department shall post on the department's website information and data that are updated monthly regarding the empowerment scholarship accounts and that include:
1. Information regarding all purchases and expenditures made with empowerment scholarship account monies. The Information included pursuant to this paragraph may not violate the personal privacy of any student or family and shall include only aggregate data.
2. The number of enrolled students disaggregated by eligibility.
3. Any other information or data that may be pertinent to promoting transparency and accountability of the empowerment scholarship accounts.
Sec. 4. Department of education; empowerment scholarship accounts; administration; contracts
A. On or before December 15, 2017, the department of education shall enter into one or more contracts with one or more private contractors in order to substantially assist in the administration of empowerment scholarship accounts established pursuant to title 15, chapter 19, Arizona Revised Statutes. The contracts required by this subsection shall be for both of the following:
1. The administration of processing applications and making qualified student eligibility determinations.
2. The administration of financial transactions, including the management of monies, the approval of eligible expenses and data reporting.
B. Any contract entered into by the department of education pursuant to this section shall be used to enhance the administration of empowerment scholarship accounts and to ensure additional accountability and transparency.
C. If necessary to effectuate the contracts entered into by the department of education pursuant to this section, the department of education shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty‑third legislature, second regular session.
Sec. 5. Empowerment scholarship account review council; annual report; delayed repeal
A. The empowerment scholarship account review council is established consisting of the following members:
1. Six members who are parents of children who are currently receiving empowerment scholarship accounts and who have been enrolled in an empowerment scholarship account for at least two years. These members shall be appointed by the governor.
2. The chairperson of the education committee of the senate and the chairperson of the education committee of the house of representatives.
3. The superintendent of public instruction or the superintendent's designee.
B. Appointed members serve at the pleasure of the person who made the appointment. The members of the council shall select a chairperson from the members appointed pursuant to subsection A, paragraph 1 of this section.
C. Council members are not eligible to receive compensation, but members appointed by the governor are eligible for reimbursement of expenses under title 38, chapter 4, article 2, Arizona Revised Statutes.
D. The council shall:
1. Review and make recommendations to the department of education regarding the administration of empowerment scholarship accounts.
2. Make recommendations to the legislature for changes to the laws regarding empowerment scholarship accounts.
3. Review and approve any contracts entered into for the financial management or administration of empowerment scholarship accounts.
4. Review and approve any changes to the empowerment scholarship accounts policy handbook pursuant to section 15-2403, Arizona Revised Statutes, as amended by this act.
5. Submit a report regarding the council's activities and recommendations on or before December 15 of each year to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of this report to the secretary of state.
E. The department of education shall provide technical assistance to the empowerment scholarship account review council.
F. This section is repealed from and after December 31, 2020.
Sec. 6. Retroactivity
Section 15‑2402, subsection F, Arizona Revised Statutes, as amended by this act, applies retroactively to from and after January 1, 2015.
