Stricken language would be deleted from and underlined language would be added to present law.
*TNL014* 11/20/2024 9:17:32 AM TNL014
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1020 3
4
By: Representative A. Collins 5
6
7
For An Act To Be Entitled 8
AN ACT TO REPEAL THE ARKANSAS CHILDREN'S EDUCATIONAL 9
FREEDOM ACCOUNT PROGRAM; TO CREATE AN ADDITIONAL 10
EDUCATION FUNDING CATEGORY FOR STUDENTS WHO RECEIVE 11
SPECIAL EDUCATION AND RELATED SERVICES; TO CREATE THE 12
COMMUNITY SCHOOLS ACT FUND; AND FOR OTHER PURPOSES. 13
14
15
Subtitle 16
TO REPEAL THE ARKANSAS CHILDREN'S 17
EDUCATIONAL FREEDOM ACCOUNT PROGRAM; TO 18
CREATE A NEW EDUCATION FUNDING CATEGORY 19
FOR STUDENTS WHO RECEIVE SPECIAL 20
EDUCATION AND RELATED SERVICES; AND TO 21
CREATE THE COMMUNITY SCHOOLS ACT FUND. 22
23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
25
SECTION 1. Arkansas Code Title 6, Chapter 18, Subchapter 25, is 26
repealed. 27
6-18-2501. Title. 28
This subchapter shall be known and may be cited as the “Arkansas 29
Children's Educational Freedom Account Program”. 30
31
6-18-2502. Creation. 32
There is created the “Arkansas Children's Educational Freedom Account 33
Program”. 34
35
6-18-2503. Definitions. 36 HB1020
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As used in this subchapter: 1
(1) “Account” means an account that is comprised of funds 2
deposited on behalf of a participating student to pay for qualifying 3
educational expenses; 4
(2) “Account funds” means the funds deposited into an account on 5
behalf of a participating student; 6
(3) “Curriculum” means a complete course of study for a 7
particular content area or grade level; 8
(4) “Eligible student” means a resident of the State of Arkansas 9
who is eligible to enroll in a public elementary or secondary school, subject 10
to the timeline and parameters established under §§ 6 -18-2506 and 6-18-2507; 11
(5) “Full academic curriculum” means all required core courses, 12
or the equivalent, as are offered in traditional public schools; 13
(6) “Full academic year” means at least one hundred seventy -14
eight (178) days of instruction or the equivalent number of hours to what is 15
offered in traditional public schools; 16
(7) “Parent” means: 17
(A) A biological or adoptive parent; 18
(B) Legal guardian or custodian; 19
(C) Persons standing in loco parentis to a student; or 20
(D) Another person with legal authority to act on behalf 21
of an eligible student; 22
(8) “Participating school” means a private elementary school or 23
private secondary school that: 24
(A) Offers enrolled students a full academic curriculum 25
and full academic year experience; and 26
(B) Receives payments from Arkansas Children's Educational 27
Freedom Account Program accounts to provide goods and services that are 28
covered as qualifying expenses under this subchapter; 29
(9) “Participating service provider” means a person or an 30
entity, including a participating public or private school, that receives 31
payments from program accounts to provide goods and services that are covered 32
as qualifying expenses under this subchapter; 33
(10) “Participating student” means a student: 34
(A) Eligible to participate in the program; and 35
(B) For whom an account has been established under this 36 HB1020
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subchapter; and 1
(11) “Qualifying expenses” means: 2
(A)(i) For the 2023 -2024 school year, “qualifying 3
expenses” shall include: 4
(a) Tuition; 5
(b) Fees; 6
(c) The cost of testing under this subchapter; 7
(d) The cost of required school uniforms, if 8
any, at a participating school; and 9
(e) Expenses determined by a participating 10
school to be necessary for the education of a participating student and 11
required to be paid by a participating student who is enrolled in the 12
participating school, including without limitation expenses related to: 13
(1) Supplies; 14
(2) Equipment; 15
(3) Access to technology; and 16
(4) Services provided by or at the 17
participating school. 18
(ii) “Qualifying expenses” shall not mean optional 19
expenses payable to a third party; and 20
(B) Beginning with the 2024 -2025 school year and 21
each year thereafter, “qualifying expenses” shall include those listed under 22
subdivision (11)(A) of this section and include the following: 23
(i) Instructional materials required for either in -24
person or virtual instruction provided by a participating service provider or 25
participating school; 26
(ii) Instructional or tutoring services; 27
(iii) Curriculum; 28
(iv) Supplemental materials or supplies required by 29
a course of study for a particular content area; 30
(v) Fees for: 31
(a) Courses and associated examinations for 32
college credit; and 33
(b) Any examination related to postsecondary 34
educational institution admission; 35
(vi) Fees for: 36 HB1020
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(a) Courses and associated examinations for 1
career training; and 2
(b) Any examination required in order to 3
obtain an industry-based credential; 4
(vii) Educational services provided by a licensed or 5
accredited practitioner or participating service provider to a participating 6
student who is a student with a disability; 7
(viii) Fees for account management by participating 8
service providers; 9
(ix)(a) Technological devices used to meet a 10
participating student's educational needs, which shall not include: 11
(1) A television; 12
(2) A video game console or accessory; 13
or 14
(3) Home theater or audio equipment. 15
(b) Technological devices under subdivision 16
(11)(B)(ix)(a) of this section are subject to approval by the Department of 17
Education or a licensed physician; 18
(x) Costs associated with transportation to and from 19
a participating service provider or participating school; and 20
(xi) Any other educational expense approved by the 21
Division of Elementary and Secondary Education. 22
23
6-18-2504. State Board of Education — Rules. 24
(a) The Division of Elementary and Secondary Education shall 25
administer the Arkansas Children's Educational Freedom Account Program under 26
this subchapter, which shall be subject to the rules adopted by the State 27
Board of Education. 28
(b) The rules adopted by the state board under this subchapter shall 29
include without limitation the: 30
(1) Process for determining the eligibility of students and 31
service providers, including the awarding of accounts to eligible students 32
and removal of unnecessary barriers or disincentives to participation by 33
potential participating service providers; 34
(2)(A) Process for conducting account and program audits, 35
including establishing the authority for the division to conduct or contract 36 HB1020
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for the auditing of accounts. 1
(B) The division shall establish a process for conducting 2
an audit of an entity receiving funds under this subchapter, including: 3
(i) An individual account; 4
(ii) A participating service provider; and 5
(iii) A participating school. 6
(C) At least one (1) time each year, the division shall 7
conduct random audits of the following according to the auditing process 8
established under subdivision (b)(2)(B) of this section: 9
(i) An individual account; 10
(ii) A participating service provider; and 11
(iii) A participating school; 12
(3) Authority of the division to: 13
(A) Deem any participating student ineligible for the 14
program; and 15
(B) Refer a case involving the misuse of account funds for 16
investigation to: 17
(i) The Attorney General; or 18
(ii) The Secretary of the Department of Inspector 19
General; 20
(4) Authority of the division to contract with a vendor or other 21
supplier for the administration of the program or parts of the program; 22
(5) Requirement that the program shall: 23
(A) Begin enrolling participating students no later than 24
the beginning of the 2023 -2024 school year; and 25
(B) Be fully implemented to serve all Arkansas children 26
eligible to enroll in a public school by the beginning of the 2025 -2026 27
school year; 28
(6) Establishment or creation of a contract for the establishment of 29
an online anonymous fraud reporting service, including without limitation a 30
telephone hotline; 31
(7) Requirement for a surety bond for a participating service provider 32
that receives more than one hundred thousand dollars ($100,000) in account 33
funds; 34
(8) Mechanism for the refunding of payments from service providers 35
back to the account from which they were paid; 36 HB1020
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(9) Required compliance with all state procurement laws and 1
procedures; and 2
(10) Means for preventing unreasonable inflation or fraud in 3
participating school tuition and fees. 4
(c) The following shall be forwarded to Arkansas Legislative Audit: 5
(1) An audit conducted under subdivision (b)(2) of this section 6
that identifies a potential misuse of account funds; and 7
(2) The referral of a case involving the misuse of account funds 8
for investigation to the Attorney General or the Secretary of the Department 9
of Inspector General under subdivision (b)(3)(B) of this section. 10
(d) To ensure that account funds under this subchapter provide for the 11
expansion of access to education options by reducing family financial burdens 12
and are not abused by service providers for financial gain, the state board 13
shall take all necessary action in establishing rules under this subchapter, 14
including without limitation the disqualification of a participating school 15
or a participating service provider. 16
17
6-18-2505. Account funds. 18
(a)(1) The Division of Elementary and Secondary Education shall 19
allocate annually to each participating student's account, from funds 20
appropriated to the Arkansas Children's Educational Freedom Account Fund or 21
otherwise made available for the Arkansas Children's Educational Freedom 22
Account Program, an amount equal to ninety percent (90%) of the prior year's 23
statewide foundation funding allotted per student under § 6 -20-2305. 24
(2) For the 2023-2024 school year and each school year 25
thereafter, a student who participated in the Succeed Scholarship Program 26
during the 2022-2023 school year shall receive one hundred percent (100%) of 27
the prior year's statewide foundation funding amount allotted per student 28
under § 6-20-2305 until: 29
(A) The participating student graduates from high school; 30
(B) The participating student receives a certificate of 31
completion; or 32
(C) An event that requires an account to be closed under 33
subdivision (f)(1) or (f)(2) of this section occurs. 34
(b)(1) For the 2023 -2024 school year, on behalf of participating 35
students enrolled in participating schools or with participating service 36 HB1020
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providers and at the direction of a participating student’s parent, the 1
Department of Education shall make four (4) equal payments in quarterly 2
installments from the participating student’s account to the participating 3
school or participating service provider in which the participating student 4
is enrolled for tuition, fees, and costs associated with testing and 5
uniforms. 6
(2) The department may: 7
(A) Contract with a vendor or provider to manage the 8
payment system used for purposes of implementing this subsection; and 9
(B) Withhold up to five percent (5%) of funds allocated 10
for each account annually for the administration of the Arkansas Children’s 11
Educational Freedom Account Program. 12
(c) For the 2023-2024 school year, if a participating student is 13
enrolled full-time in a participating school or with a participating service 14
provider and the total amount of tuition, fees, testing, and uniform costs is 15
less than the amount determined under subsection (a) of this section, the 16
amount allocated to the student shall be the lesser amount. 17
(d) Account funds shall: 18
(1)(A) Not be refunded, rebated, or shared with a parent or 19
participating student in any manner. 20
(B) Any refund or rebate for goods or services purchased 21
with account funds shall be credited directly to the participating student’s 22
account; and 23
(2) Be used only for qualifying education expenses for a 24
participating student. 25
(e)(1) Beginning with the 2024 -2025 school year and each year 26
thereafter, the department shall develop a system for parents to direct 27
account funds to participating schools and participating service providers by 28
electronic funds transfer, automated clearinghouse transfer, debit card, or 29
another system. 30
(2) The department may: 31
(A) Contract with a vendor or provider, including without 32
limitation a private institution, to manage the payment system used for 33
purposes of implementing this subsection; and 34
(B) Withhold up to five percent (5%) of funds allocated 35
for each account annually for the administration of the Arkansas Children’s 36 HB1020
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Educational Freedom Account Program. 1
(3) The department shall: 2
(A) Not adopt a payment system under this subsection that 3
relies exclusively on requiring parents to be reimbursed for out -of-pocket 4
expenses; and 5
(B) Ensure a payment system developed under this 6
subsection provides maximum flexibility to parents by facilitating direct 7
payments to participating service providers and requests for preapproval of 8
and reimbursements for qualifying expenses. 9
(f)(1) An account shall remain in force, and any unused funds shall 10
roll over from quarter -to-quarter and from year -to-year, until: 11
(A) A parent withdraws his or her participating student 12
from the program; 13
(B) A participating student graduates from high school; or 14
(C) The end of the school year if a participating student 15
turns twenty-one (21) years of age, whichever occurs first. 16
(2) An account shall be closed before an event occurs under 17
subdivision (f)(1) of this section if the State Board of Education finds: 18
(A) A substantial misuse of funds; or 19
(B) That a parent has failed to comply with this 20
subchapter or state board rules governing the Arkansas Children’s Educational 21
Freedom Account Program. 22
(3)(A) Any unused funds shall revert to the division and be 23
allocated to fund other accounts. 24
(B)(i) There shall be a maximum amount of funds allowed to 25
remain in each participating student's account. 26
(ii) The state board may establish rules to determine 27
the: 28
(a) Maximum amount of funds allowed under 29
subdivision (f)(3)(B)(i) of this section; and 30
(b) Process by which account funds will be 31
returned to the appropriate fund within the department. 32
(g) Account funds shall not: 33
(1) Constitute taxable income of the parent or the participating 34
student; and 35
(2) Be claimed as a credit, deduction, exemption, or rebate. 36 HB1020
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(h) The division shall create procedures to ensure that a fair process 1
exists to determine whether a participating student is no longer eligible for 2
participation in the Arkansas Children’s Educational Freedom Account Program, 3
including without limitation a participating student who is no longer 4
eligible for participation in the Arkansas Children’s Educational Freedom 5
Account Program due to his or her failure to demonstrate academic achievement 6
or academic growth. 7
(i)(1) If the division bars a student from participating in the 8
Arkansas Children’s Educational Freedom Account Program, it shall notify the 9
participating student and his or her parent of its decision within three (3) 10
days of its decision. 11
(2) A parent may appeal the division’s decision to bar him or 12
her from receiving payments from accounts to the state board according to 13
rules established by the state board. 14
(j) The state board may promulgate rules to implement this subchapter. 15
16
6-18-2506. Student eligibility — Initial and continuing. 17
(a) A student is initially eligible for an account if the student: 18
(1) Has a parent who is a resident of the State of Arkansas as 19
defined by § 6-18-202; 20
(2) Is eligible to enroll in a public elementary or secondary 21
school in this state; and 22
(3) Meets the following criteria: 23
(A)(i) For the 2023 -2024 school year, a student shall be 24
eligible if the student is at least one (1) of the following: 25
(a) A student with a disability identified 26
under the Individuals with Disabilities Education Act, 20 U.S.C. § 1400 et 27
seq., as it existed on January 1, 2023; 28
(b) A student who is considered homeless under 29
the McKinney-Vento Homeless Assistance Act, 42 U.S.C. § 11431 et seq., as it 30
existed on January 1, 2023; 31
(c) A foster child or a former foster child; 32
(d)(1) A student who is currently 33
participating in the Succeed Scholarship Program, § 6 -41-901 et seq. 34
[repealed]. 35
(2) A student who participated in the 36 HB1020
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Succeed Scholarship Program during the 2022 -2023 school year and elects to 1
enroll in the Arkansas Children's Educational Freedom Account Program under 2
this subchapter shall receive one hundred percent (100%) of the prior year's 3
statewide foundation funding amount allotted per student under § 6 -20-2305 4
until: 5
(A) The participating student 6
graduates from high school; 7
(B) The participating student 8
receives a certificate of completion; or 9
(C) An event that requires an 10
account to be closed under § 6 -18-2505(f)(1) or § 6-18-2505(f)(2) occurs; 11
(e) A child of active -duty uniformed service 12
personnel, as identified under Title 10, Title 32, Title 33, or Title 42 of 13
the United States Code; 14
(f) A student who was enrolled in the previous 15
school year in a: 16
(1) Public school that has a rating of 17
“F” under §§ 6-15-2105 and 6-15-2106 and State Board of Education rules; or 18
(2) Public school district classified as 19
in need of Level 5 — Intensive support under § 6 -15-2913 or § 6-15-2915; or 20
(g) A student who is enrolling in kindergarten 21
for the first time. 22
(ii)(a) For the 2023 -2024 school year, a 23
maximum of one and five -tenths percent (1.5%) of the 2022 -2023 total public 24
school student enrollment may be approved to participate in the Arkansas 25
Children's Educational Freedom Account Program. 26
(b) However, the number of students approved 27
to participate in the Arkansas Children's Educational Freedom Account Program 28
under subdivision (a)(3)(A)(ii)(a) of this section shall not exceed the 29
amount of funds made available for the Arkansas Children's Educational 30
Freedom Account Program; 31
(B)(i) For the 2024 -2025 school year, student eligibility shall 32
expand to include students who meet at least one (1) of the following: 33
(a) All students who are eligible under subdivision 34
(a)(3)(A) of this section; 35
(b) Students who were enrolled in the prior school 36 HB1020
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year in public schools rated “D” or “F” under §§ 6 -15-2105 and 6-15-2106 and 1
state board rules; and 2
(c) Students whose parents are: 3
(1) Veterans as identified under Title 38 of 4
the United States Code; 5
(2) In the uniformed service reserve 6
components; 7
(3) First responders; or 8
(4) Law enforcement officers. 9
(ii)(a) For the 2024 -2025 school year, a maximum of 10
three percent (3%) of the 2022 -2023 total public school student enrollment 11
may be approved to participate in the Arkansas Children's Educational Freedom 12
Account Program. 13
(b) The number of students approved to participate 14
in the Arkansas Children's Educational Freedom Account Program under 15
subdivision (a)(3)(B)(ii)(a) of this section shall: 16
(1) Include any students who are continuing to 17
participate in the Arkansas Children's Educational Freedom Account Program 18
from the 2023-2024 school year; and 19
(2) Not exceed the amount of funds made 20
available for the Arkansas Children's Educational Freedom Account Program; 21
and 22
(C)(i) For the 2025 -2026 school year and each year thereafter, 23
any resident of this state who is eligible to enroll in a public elementary 24
or secondary school shall be eligible. 25
(ii) Beginning with the 2025 -2026 school year, there shall 26
be no limitation on student participation in the Arkansas Children's 27
Educational Freedom Account Program. 28
(b) In any year in which funds are insufficient to fund all 29
applications for new accounts, first priority shall be given to students who 30
are eligible under subdivision (a)(3)(A) of this section, followed by 31
students eligible under subdivision (a)(3)(B) of this section. 32
(c) In any year in which funds are insufficient to fund all continuing 33
accounts, priority shall be given to students who have been in the Arkansas 34
Children’s Educational Freedom Account Program the longest after priority has 35
been given to students identified under subsection (b) of this section. 36 HB1020
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(d) The State Board of Education shall promulgate rules: 1
(1) For the implementation of the Arkansas Children’s 2
Educational Freedom Account Program; and 3
(2) To effectively and efficiently administer the Arkansas 4
Children’s Educational Freedom Account Program, including without limitation: 5
(A) The awarding of funds to participating students; 6
(B) The oversight of the Arkansas Children’s Educational 7
Freedom Account Program; and 8
(C) Any other necessary aspects for the operation of the 9
Arkansas Children’s Educational Freedom Account Program. 10
(e)(1) Except as provided under subdivision (e)(2) of this section, a 11
participating student may only participate in and receive funds from one (1) 12
of the following: 13
(A) The Arkansas Children's Educational Freedom Account 14
Program established by this subchapter; or 15
(B) The Philanthropic Investment in Arkansas Kids Program 16
Act, § 6-18-2301 et seq. 17
(2)(A) A student with a disability as described by subdivision 18
(a)(3)(A)(i)(a) of this section who has an annual family income that is less 19
than or equal to two hundred percent (200%) of the federal poverty guidelines 20
as determined annually in the Federal Register by the United States 21
Department of Health and Human Services under 42 U.S.C. § 9902(2), as 22
required under the Philanthropic Investment in Arkansas Kids Program may 23
receive funds from both the Arkansas Children's Educational Freedom Account 24
Program established by this subchapter and the Philanthropic Investment in 25
Arkansas Kids Program. 26
(B) However, a student who qualifies under subdivision 27
(e)(2)(A) of this section may receive funds from both the Arkansas Children's 28
Educational Freedom Account Program established by this subchapter and the 29
Philanthropic Investment in Arkansas Kids Program only to the extent 30
necessary to cover qualifying expenses. 31
(f) The student's parent shall submit an application for an account to 32
the Department of Education in accordance with Arkansas Children’s 33
Educational Freedom Account Program timelines established by the department. 34
(g)(1) The department shall create a standard form that a parent may 35
submit to establish his or her child's eligibility for the program. 36 HB1020
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(2) The department shall ensure that the standard form required 1
under subdivision (g)(1) of this section is publicly available and may be 2
submitted through various sources, including without limitation the internet. 3
(h)(1) As part of the application, a parent shall sign an agreement 4
promising each of the following without limitation: 5
(A)(i) Not to enroll his or her child full -time in a 6
public school while his or her child is participating in the Arkansas 7
Children’s Educational Freedom Account Program. 8
(ii) However, a participating student may take 9
approved courses at a public school participating as an approved provider; 10
(B) To use account funds only for qualifying expenses of 11
the participating student; 12
(C) To comply with all Arkansas Children’s Educational 13
Freedom Account Program requirements as established by the department 14
according to state board rules; and 15
(D) Beginning with the 2024 -2025 school year, in the case 16
of any account used for qualifying educational expenses not associated with 17
full-time enrollment in a participating school or a participating service 18
provider, to agree to provide an education for his or her participating 19
student in at least the subjects of English language arts, mathematics, 20
social studies, and science. 21
(2) The signed agreement required under subdivision (h)(1) of 22
this section shall satisfy the compulsory school attendance requirements of § 23
6-18-201. 24
(i) The division shall: 25
(1) Continue making deposits into a participating student’s 26
account until: 27
(A) The division determines that the participating student 28
is no longer an eligible student; 29
(B) The division determines that there was substantial 30
misuse of account funds, as defined by the state board; 31
(C) A parent or a participating student withdraws from the 32
Arkansas Children’s Educational Freedom Account Program; 33
(D) A participating student enrolls full -time in a public 34
school; 35
(E) A participating student graduates from high school; or 36 HB1020
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(F) A participating student completes the school year in 1
the year in which he or she turns twenty -one (21) years of age; 2
(2) Provide parents with a written explanation of the: 3
(A) Allowable uses of funds; 4
(B) Responsibilities of parents; and 5
(C) Duties of the division and the role of any private 6
financial management firms or other private organizations that the department 7
may contract with to administer the Arkansas Children’s Educational Freedom 8
Account Program or any aspect of the Arkansas Children’s Educational Freedom 9
Account Program; and 10
(3) Annually fund a participating student’s account as funds are 11
available and in accordance with this law and state board rules. 12
(j)(1) Upon notice to the division, a participating student may choose 13
to stop receiving funds disbursed under this subchapter and enroll full -time 14
in a public school. 15
(2)(A) Enrolling as a full -time student in a public school shall 16
result in the immediate suspension of payment of additional funds into the 17
participating student’s account. 18
(B)(i) However, for accounts that have been open for at 19
least one (1) full academic year, the account shall remain open and active 20
for the parent of a former participating student to make qualifying 21
expenditures to educate the student from funds remaining in the account. 22
(ii) When no funds remain in the former 23
participating student’s account, the division may close the account. 24
(3)(A) If a former participating student decides to return to 25
the Arkansas Children’s Educational Freedom Account Program and is a current 26
eligible student, payments into the former participating student’s existing 27
account may resume if the account is still open and active. 28
(B) A new account may be established if the former 29
participating student’s previous account was closed. 30
(k) The state board and the department may adopt rules to provide the 31
least disruptive process for a participating student who desires to stop 32
receiving funds disbursed under this subchapter and enroll full -time in a 33
public school. 34
35
6-18-2507. Participating schools and participating service providers — 36 HB1020
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Eligibility — Participation. 1
(a) To be eligible to participate in the Arkansas Children's 2
Educational Freedom Account Program, a private school shall: 3
(1)(A) Either: 4
(i) Meet accreditation requirements established by 5
the State Board of Education, the Arkansas Nonpublic School Accrediting 6
Association, Inc., or its successor, or another accrediting association 7
recognized by the state board; or 8
(ii) Be an associate member of or have applied for 9
accreditation by the Arkansas Nonpublic School Accrediting Association, Inc., 10
or its successor, or another accrediting association recognized by the state 11
board. 12
(B) A private school shall no longer be eligible if: 13
(i) The private school has not received 14
accreditation within four (4) years of becoming eligible; 15
(ii) The state board determines, based on 16
information provided by the accrediting association, that the private school 17
is ineligible or unable to continue the accreditation process; or 18
(iii) It becomes impossible for the private school 19
to obtain accreditation within four (4) years. 20
(C) A private school that becomes ineligible under this 21
section shall regain eligibility when the private school receives 22
accreditation and is approved by the state board; 23
(2)(A) Demonstrate fiscal soundness by having been in operation 24
for at least one (1) school year or providing the Department of Education 25
with a statement by a certified public accountant confirming that the private 26
school is insured and the private school has sufficient capital or credit to 27
operate in the upcoming school year. 28
(B) In lieu of a statement provided under subdivision 29
(a)(2)(A) of this section, a surety bond or letter of credit for the amount 30
equal to the account funds needed by the private school for any quarter may 31
be filed with the department; 32
(3) Certify that it will not discriminate on any basis 33
prohibited by 42 U.S.C. § 2000d, as it existed on January 1, 2023; 34
(4) Remain academically accountable to a parent for meeting the 35
educational needs of his or her participating student; 36 HB1020
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(5) Employ or contract only with teachers who hold at least 1
baccalaureate degrees or have equivalent documented experience; 2
(6) Comply with all applicable state laws and rules governing 3
private schools; 4
(7) Adhere to the tenets of its published disciplinary 5
procedures before expelling a participating student; 6
(8) Meet any other eligibility criteria set by state board 7
rules; 8
(9) Comply with all applicable health and safety laws and rules; 9
(10) Hold valid occupancy of buildings as required by the 10
relevant municipality in which the private school is located; 11
(11) Exclude any individual from employment who may reasonably 12
pose a risk to the appropriate use of funds disbursed under this subchapter; 13
(12) Complete background checks and fingerprinting for any 14
employee working in the private school; and 15
(13) Maintain for audit purposes a background check of all 16
employees. 17
(b)(1) A public school district or open -enrollment public charter 18
school located in the State of Arkansas that previously enrolled a student 19
who is now a participating student under this subchapter shall provide the 20
participating school or participating service provider that has enrolled the 21
student who was previously enrolled in the public school district or open -22
enrollment public charter school a copy of the participating student's school 23
records to the extent permitted under the provisions of the Family 24
Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, as it existed 25
on January 1, 2023. 26
(2) The requirement under subdivision (b)(1) of this section 27
that a public school district or open -enrollment public charter school in 28
which a participating student was previously enrolled be located in the State 29
of Arkansas does not apply to a student currently participating in the 30
Succeed Scholarship Program, § 6 -41-901 et seq. 31
(c) By not later than June 30, 2024, the state board shall adopt rules 32
providing for program eligibility for participating service providers that 33
are not participating schools, including without limitation an application 34
process that is executed, at a minimum, annually for the purpose of 35
determining service provider eligibility. 36 HB1020
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(d) The department shall maintain a list of service providers 1
determined to be eligible to participate in the program and make the list 2
available on the department's website. 3
(e) The department may bar a service provider from accepting payments 4
from accounts and restrict the service provider’s ability to serve additional 5
participating students if the department determines that the participating 6
service provider has: 7
(1) Failed to maintain continuing eligibility criteria 8
established by the state board; 9
(2) Demonstrated a gross or persistent lack of academic 10
competence, as defined by the state board; 11
(3) Intentionally or substantially misrepresented information or 12
failed to refund any overpayments in a timely manner, as defined by the state 13
board; or 14
(4) Routinely failed to provide participating students with 15
promised educational goods or services, as defined by the state board. 16
(f)(1) The department shall create procedures to ensure that a fair 17
process exists to determine whether a participating service provider may be 18
barred from receiving payments from accounts under subsection (e) of this 19
section. 20
(2) If the department bars a participating service provider from 21
receiving payments from accounts under this section, it shall notify parents 22
and participating students of its decision within three (3) days of its 23
decision on the department's website and through attempted individual 24
communications. 25
(3) A participating service provider may appeal the department’s 26
decision to bar it from receiving payments from accounts to the state board. 27
(g) The following may be subject to review and an audit of funds 28
received related to this subchapter and as directed by the state board: 29
(1) A participating service provider; and 30
(2) A participating school. 31
(h) The state board shall promulgate rules to implement this 32
subchapter. 33
34
6-18-2508. Students with disabilities. 35
The Department of Education shall ensure that parents of students with 36 HB1020
18 11/20/2024 9:17:32 AM
disabilities identified under the Individuals with Disabilities Education 1
Act, 20 U.S.C. § 1400 et seq., as it existed on January 1, 2023, receive: 2
(1) Notice that participation in the Arkansas Children’s 3
Educational Freedom Account Program is a parental placement under 20 U.S.C. § 4
1412, as it existed on January 1, 2023; and 5
(2) An explanation of the rights that parentally placed students 6
possess under the Individuals with Disabilities Education Act, 20 U.S.C. § 7
1400 et seq., as it existed on January 1, 2023, and any applicable state laws 8
and rules. 9
10
6-18-2509. Testing. 11
(a)(1) Each participating school and participating service provider 12
shall provide for each participating student to annually take an assessment 13
approved by the State Board of Education, which shall include: 14
(A) An examination identified by the state board that is 15
required for students attending public schools; or 16
(B) A state board-approved nationally recognized norm -17
referenced test or a statewide assessment, which measures, at a minimum, 18
literacy and math. 19
(2)(A) However, a participating student who has an 20
individualized service plan and is determined by a participating private 21
school to need an exemption from standardized testing due to the existence of 22
a significant cognitive disability is not required to take the test required 23
under subdivision (a)(1) of this section. 24
(B) If a student is not required to take the test required 25
under subdivision (a)(1) of this section, a participating private school 26
shall annually make provision for the student to take an alternate assessment 27
approved by the state board or prepare a portfolio that provides information 28
on a student's progress to the student's parent or guardian. 29
(b) For a participating student who is served by a participating 30
service provider that is not a private school that is a participating school 31
during or after the 2024 -2025 school year, his or her parent shall provide 32
for his or her child who is a participating student to take an approved 33
examination meeting the standards established under subsection (a) of this 34
section. 35
(c)(1) The Department of Education shall develop a process for the 36 HB1020
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collection and aggregate reporting of the results of examinations required 1
under this section, which shall include the public dissemination of the 2
results collected by participating private schools and participating service 3
providers. 4
(2) However, the reporting required under subdivision (c)(1) of 5
this section shall: 6
(A) Not identify any individual student; and 7
(B) Ensure that the summary results of the examinations 8
required under this section are provided to parents of participating 9
students. 10
11
6-18-2510. Reports. 12
(a)(1) Not later than September 30 of each year, the Department of 13
Education shall submit a written report regarding the implementation of the 14
Arkansas Children's Educational Freedom Account Program to the: 15
(A) Legislative Council, or if the General Assembly is in 16
session, the Joint Budget Committee; 17
(B) House Committee on Education; and 18
(C) Senate Committee on Education. 19
(2) The department may contract with an outside entity to 20
compile the report required under subdivision (a)(1) of this section. 21
(b) The report required under subdivision (a)(1) of this section shall 22
include the following information without limitation: 23
(1) The total number of students currently participating in the 24
program; 25
(2) A list of all participating schools and participating 26
service providers; 27
(3) The total student enrollment of each participating school 28
and the percentage of the total enrollment of each school represented by 29
participating students; 30
(4) Aggregated test result data for participating students, from 31
the most recent year available; 32
(5) The percentage of funds used for each type of qualifying 33
expense; 34
(6) An analysis of the program's fiscal impact; 35
(7) The retention rates for participating students enrolled in 36 HB1020
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participating schools; 1
(8) The results of a parental satisfaction survey that shall be 2
administered by the department; and 3
(9) Other relevant data as determined by the department. 4
5
6-18-2511. Legal proceedings. 6
(a) There shall be no liability on the part of the Department of 7
Education or the state or of any public school or public school district 8
based on the award of or use of an account under this subchapter. 9
(b) Nothing in this section shall be construed as a waiver of 10
sovereign immunity or any other defenses available to the State of Arkansas. 11
12
SECTION 2. Arkansas Code § 6 -20-2305(b), concerning education 13
categories of funding in addition to state foundation funding aid, is amended 14
to add an additional subdivision read as follows: 15
(7)(A) For the 2025 -2026 school year and each school year 16
thereafter, special education funding shall be three thousand eighty hundred 17
sixty-two dollars ($3,862) multiplied by the number of students who receive 18
special education and related services required by an individualized 19
education plan. 20
(B) Funding for students who receive special education and 21
related services required by an individualized education plan under 22
subdivision (b)(7)(A) of this section shall be distributed based on rules 23
promulgated by the state board. 24
(C) Funding for students who receive special education and 25
related services required by an individualized education plan shall not be 26
incorporated into the state foundation funding aid amount established under 27
subsection (a) of this section. 28
29
SECTION 3. Arkansas Code § 9 -28-113(j), concerning the use of state 30
and federal funding for the placement of a foster child in a nonpublic 31
school, is amended to read as follows: 32
(j)(1) Notwithstanding any of the provisions of this section, if it is 33
in the best interest of the child, a foster child may be placed in a 34
nonpublic school, including a private, parochial, or home school. 35
(2)(A) Except as provided in subdivision (j)(2)(B) of this 36 HB1020
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section, state State or federal funding shall not be used for the placement 1
of a foster child in a nonpublic school, including a private, parochial, or 2
home school. 3
(B) The prohibition under subdivision (j)(2)(A) of this 4
section shall not apply to a foster child who receives an Arkansas Children's 5
Educational Freedom Account Fund under § 6 -18-2501 et seq. 6
7
SECTION 4. Arkansas Code § 19 -5-1277 is repealed. 8
19-5-1277. Arkansas Children's Educational Freedom Account Fund. 9
(a) There is created on the books of the Treasurer of State, the 10
Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous 11
fund to be known as the “Arkansas Children’s Educational Freedom Account 12
Fund”. 13
(b)(1) Notwithstanding any other provisions of law, for fiscal year 14
2024 and each fiscal year thereafter, in addition to all other amounts 15
required under the Arkansas Children's Educational Freedom Account Program, 16
the Department of Education shall include in its annual budget request 17
submitted under § 19 -4-301 et seq., and the Governor shall include in each 18
recommendation submitted to the General Assembly under § 19 -4-201, an 19
appropriation to the Department of Education, Division of Elementary and 20
Secondary Education, for the greater of an amount not less than two percent 21
(2%) of: 22
(A) Net public school enrollment adjusted for state 23
foundation funding aid purposes; or 24
(B) The total number of eligible program applications 25
received by the division, if available, multiplied by the prior year's 26
statewide net foundation funding aid allotted per student. 27
(2) The amount appropriated under subdivision (b)(1) of this 28
section shall be transferred by the division to the fund to be used solely to 29
meet the obligations required under the program, except as otherwise provided 30
in this section. 31
(3) The Governor shall include a recommendation, as required 32
under § 19-4-201, that the total amount of funds appropriated to the division 33
that was not transferred to the fund during the previous fiscal year due to 34
an accumulated balance from previous fiscal years as provided under 35
subsection (c) of this section be reappropriated for the subsequent fiscal 36 HB1020
22 11/20/2024 9:17:32 AM
year. 1
(c) Each fiscal year, the amount required to be requested and 2
recommended for appropriation under subsection (b) of this section shall be 3
reduced by the sum of: 4
(1) Any unused, accumulated amounts transferred to the fund due 5
to the requirements under this subsection from previous years; and 6
(2) Any unused appropriations made to the department due to the 7
requirements under this subsection that were not transferred to the fund due 8
to an accumulated balance from previous years. 9
10
SECTION 5. Arkansas Code Title 19, Chapter 5, Subchapter 12, is 11
amended to add an additional section to read as follows: 12
19-5-1287. Community Schools Act Fund. 13
(a) There is created on the books of the Treasurer of State, the 14
Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous 15
fund to be known as the “Community Schools Act Fund”. 16
(b) The fund shall consist of: 17
(1) General revenues authorized by law; and 18
(2) Moneys obtained from private or public grants, gifts, 19
interagency transfers, or donations that are designated to be credited to the 20
fund. 21
(c) The fund shall be used by the Division of Elementary and Secondary 22
Education in furtherance of the purposes established under the Community 23
Schools Act, § 6-15-3001 et seq. 24
(d) Moneys remaining in the fund at the end of each fiscal year shall 25
carry forward and be made available for the purposes stated in this section 26
in the next fiscal year. 27
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