Arkansas 2025 Regular Session

Arkansas Senate Bill SB625 Latest Draft

Bill / Draft Version Filed 04/03/2025

                            Stricken language would be deleted from and underlined language would be added to present law. 
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State of Arkansas     1 
95th General Assembly A Bill     2 
Regular Session, 2025  	SENATE BILL 625 3 
 4 
By: Senator B. Davis 5 
By: Representative Brooks 6 
 7 
For An Act To Be Entitled 8 
AN ACT TO AMEND PROVISIONS OF THE ARKANSAS CODE 9 
CONCERNING THE ARKANSAS CHILDREN'S EDUCATIONAL 10 
FREEDOM ACCOUNT PROGRAM; TO DECLARE AN EMERGENCY; AND 11 
FOR OTHER PURPOSES. 12 
 13 
 14 
Subtitle 15 
TO AMEND PROVISIONS OF THE ARKANSAS CODE 16 
CONCERNING THE ARKANSAS CHILDREN'S 17 
EDUCATIONAL FREEDOM ACCOUNT PROGRAM; AND 18 
TO DECLARE AN EMERGENCY. 19 
 20 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21 
 22 
 SECTION 1.  Arkansas Code § 6 -18-2503(11), concerning the definition of 23 
"qualifying expenses" under the Arkansas Children's Educational Freedom 24 
Account Program, is amended to read as follows: 25 
 (11)  “Qualifying expenses” means expenses that include the 26 
following: 27 
 (A)(i)  For the 2023 -2024 school year, “qualifying 28 
expenses” shall include: 29 
 (a)(A) Tuition; 30 
 (b)(B) Fees; 31 
 (c)(C) The cost of testing under this subchapter; 32 
 (d)(D) The cost of required school uniforms, if any, at a 33 
participating school; and 34 
 (E)  Reasonable costs associated with co -curricular courses 35 
in the fine arts, music, or STEM fields if the co -curricular course is 36    	SB625 
 
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offered by the student's resident public school district; 1 
 (e)(F) Expenses determined by a participating school to be 2 
necessary for the education of a participating student and required to be 3 
paid by a participating student who is enrolled in the participating school, 4 
including without limitation expenses related to: 5 
 (1)(i) Supplies; 6 
 (2)(ii) Equipment; and 7 
 (3)(iii) Access to technology; and 8 
 (4) Services provided by or at the participating 9 
school.; 10 
 (ii)  “Qualifying expenses” shall not mean optional 11 
expenses payable to a third party; and 12 
 (B)   Beginning with the 2024 -2025 school year and each 13 
year thereafter, “qualifying expenses” shall include those listed under 14 
subdivision (11)(A) of this section and include the following: 15 
 (i)(G) Instructional materials required for either in -16 
person or virtual instruction provided by a participating service provider or 17 
participating school; 18 
 (ii)(H) Instructional or tutoring services; 19 
 (iii)(I) Curriculum; 20 
 (iv)(J) Supplemental materials or supplies required by a 21 
course of study for a particular content area; 22 
 (v)(K) Fees for: 23 
 (a)(i) Courses and associated examinations for 24 
college credit; and 25 
 (b)(ii) Any examination related to postsecondary 26 
educational institution admission; 27 
 (vi)(L) Fees for: 28 
 (a)(i) Courses and associated examinations for 29 
career training; and 30 
 (b)(ii) Any examination required in order to obtain 31 
an industry-based credential; 32 
 (vii)(M) Educational services provided by a licensed or 33 
accredited practitioner or participating service provider to a participating 34 
student who is a student with a disability; 35 
 (viii)(N) Fees for account management by participating 36    	SB625 
 
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service providers; 1 
 (ix)(a)(O)(i) Technological devices used to meet a 2 
participating student's educational needs, which shall not include: 3 
 (1)(a) A television; 4 
 (2)(b) A video game console or accessory; or 5 
 (3)(c) Home theater or audio equipment ; or 6 
 (d)  A telephone, cell phone, or other 7 
communication device unless the telephone, cell phone, or other communication 8 
device is for a student with a disability who is unable to communicate 9 
through other means. 10 
 (b)(ii) Technological devices under subdivision 11 
(11)(B)(ix)(a) (11)(O)(i) of this section are subject to approval by the 12 
Department of Education or a licensed physician; 13 
 (x)  Costs (P)  Reasonable costs, not to exceed twenty -five 14 
percent (25%) of the funds allocated to a student's account in a fiscal year, 15 
that are associated with transportation to and from a participating service 16 
provider or participating school; and 17 
 (Q)  Reasonable costs, not to exceed one -sixth (1/6) of the 18 
funds allocated to a student's account in a fiscal year, for extracurricular 19 
activities, physical education activities, or educational field trips that 20 
occur within the State of Arkansas; and 21 
 (xi)(R) Any other educational expense approved by the 22 
Division of Elementary and Secondary Education. 23 
 24 
 SECTION 2.  Arkansas Code § 6 -18-2503, concerning the definition of 25 
"qualifying expenses" under the Arkansas Children's Educational Freedom 26 
Account Program, is amended to add additional subdivisions to read as 27 
follows: 28 
 (12)  "Course" means a discrete program of study that follows a 29 
predetermined syllabus or specification; 30 
 (13)  "Completed student application" means: 31 
 (A)  A fully finished online application that includes all 32 
required fields completed and all applicable documentation attached to the 33 
application for the Department of Education to determine the potential award 34 
status of an applicant; or 35 
 (B)  A fully finished paper application that: 36    	SB625 
 
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 (i)  Includes all required fields completed and all 1 
applicable documentation attached to the application for the department to 2 
determine the potential award status of an applicant; and 3 
 (ii)  Bears a postmark indicating that it was placed 4 
in transit with the United States Postal Service or other common carrier 5 
before the application deadline; 6 
 (14)  "Home school" means a school provided by a parent who has 7 
filed a notice of intent to home school for his or her own child as required 8 
by § 6-15-503; and 9 
 (15)  "School year" means the duration of school from July 1 10 
through June 30. 11 
 12 
 SECTION 3.  Arkansas Code § 6 -18-2505(b)-(f), concerning account funds 13 
under the Arkansas Children's Educational Freedom Account Program, are 14 
amended to read as follows: 15 
 (b)(1)  For the 2023-2024 school year, on On behalf of participating 16 
students enrolled in participating schools or with participating service 17 
providers and at the direction of a participating student’s parent, the 18 
Department of Education shall make four (4) equal payments in quarterly 19 
installments disbursements from the participating student’s account to the 20 
participating school or participating service provider in which the 21 
participating student is enrolled for tuition, fees, and costs associated 22 
with testing and uniforms qualifying expenses. 23 
 (2)  The department may: 24 
 (A)  Contract with a vendor or provider to manage the 25 
payment system used for purposes of implementing this subsection; and 26 
 (B)  Withhold up to five percent (5%) of funds allocated 27 
for each account annually for the administration of the Arkansas Children’s 28 
Educational Freedom Account Program. 29 
 (c)  For the 2023-2024 school year, if a participating student is 30 
enrolled full-time in a participating school or with a participating service 31 
provider and the total amount of tuition, fees, testing, and uniform costs is 32 
less than the amount determined under subsection (a) of this section, the 33 
amount allocated to the student shall be the lesser amount. 34 
 (d) Account funds shall: 35 
 (1)(A)  Not be refunded, rebated, or shared with a parent or 36    	SB625 
 
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participating student in any manner. 1 
 (B)  Any refund or rebate for goods or services purchased 2 
with account funds shall be credited directly to the participating student’s 3 
account; and 4 
 (2)  Be used only for qualifying education expenses for a 5 
participating student. 6 
 (e)(1)(d)(1) Beginning with the 2024 -2025 school year and each year 7 
thereafter, the The department shall develop a system for parents to direct 8 
account funds to participating schools and participating service providers by 9 
electronic funds transfer, automated clearinghouse transfer, debit card, or 10 
another system. 11 
 (2)  The department may: 12 
 (A)  Contract with a vendor or provider, including without 13 
limitation a private institution, to manage the payment system used for 14 
purposes of implementing this subsection; and 15 
 (B)  Withhold up to five percent (5%) Permit a vendor, 16 
pursuant to contract, to withhold up to two percent (2%) of funds allocated 17 
for each account annually for the administration of the Arkansas Children’s 18 
Educational Freedom Account Program. 19 
 (3)  The department shall: 20 
 (A)  Not adopt a payment system under this subsection that 21 
relies exclusively on requiring parents to be reimbursed for out -of-pocket 22 
expenses; and 23 
 (B)  Ensure a payment system developed under this 24 
subsection provides maximum flexibility to parents by facilitating direct 25 
payments to participating service providers and requests for preapproval of 26 
and reimbursements for qualifying expenses. 27 
 (f)(1)(e)(1) An account shall remain in force, and any unused funds 28 
shall roll over from quarter -to-quarter and from year -to-year, until one (1) 29 
or more of the following occurs : 30 
 (A)  A parent withdraws his or her participating student 31 
from the program Arkansas Children's Educational Freedom Account Program ; 32 
 (B)  A participating student graduates from high school; or 33 
 (C)  The end of the school year if a participating student 34 
turns twenty-one (21) years of age , whichever occurs first during the school 35 
year; 36    	SB625 
 
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 (D)  A participating student is expelled from a 1 
participating school; or 2 
 (E)  A participating student is otherwise rendered 3 
ineligible to participate in the Arkansas Children's Educational Freedom 4 
Account Program. 5 
 (2)  An account shall be closed before an event occurs under 6 
subdivision (f)(1) (e)(1) of this section if the State Board of Education 7 
finds: 8 
 (A)  A substantial Evidence of misuse of account funds; or 9 
 (B)  That a parent has failed to comply with this 10 
subchapter or state board rules governing the Arkansas Children’s Educational 11 
Freedom Account Program. 12 
 (3)(A)  Any unused funds shall revert to the division and be 13 
allocated to fund other accounts. 14 
 (B)  The division may pursue the collection of account 15 
funds when evidence of misuse of account funds has been shown through all 16 
means permitted by law. 17 
 (B)(i)(C)(i) There shall be a maximum amount of funds 18 
allowed to remain in each participating student's account. 19 
 (ii)  The state board may establish rules to 20 
determine the: 21 
 (a)  Maximum amount of funds allowed under 22 
subdivision (f)(3)(B)(i) (e)(3)(C)(i) of this section; and 23 
 (b)  Process by which account funds will be 24 
returned to the appropriate fund within the department. 25 
 26 
 SECTION 4.  Arkansas Code § 6 -18-2505, concerning account funds under 27 
the Arkansas Children's Educational Freedom Account Program, is amended to 28 
add an additional subsection to read as follows: 29 
 (k)(1)  The division shall provide a time frame for the submission of 30 
applications under this subchapter that shall begin no sooner than February 1 31 
and finish no later than March 31 for an upcoming school year. 32 
 (2)  At the time of submitting a completed student application, 33 
an applicant shall indicate whether he or she will attend a private school or 34 
file a notice of intent to home school. 35 
 (3)  If an applicant changes from one participating school to 36    	SB625 
 
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another participating school, a home school to a participating school, or a 1 
participating school to a home school, the applicant shall not be entitled to 2 
any increase in funding under this subchapter. 3 
 4 
 SECTION 5.  Arkansas Code § 6 -18-2506 is amended to read as follows: 5 
 6-18-2506.  Student eligibility — Initial and continuing. 6 
 (a)  A Beginning with the 2025 -2026 school year, a student is initially 7 
eligible for an account if the student: 8 
 (1)  Has a parent who is a resident of the State of Arkansas as 9 
defined by § 6-18-202; and 10 
 (2)  Is eligible to enroll in a public elementary or secondary 11 
school in this state ; and. 12 
 (3)  Meets the following criteria: 13 
 (A)(i)  For the 2023 -2024 school year, a student shall be 14 
eligible if the student is at least one (1) of the following: 15 
 (a)  A student with a disability identified 16 
under the Individuals with Disabilities Education Act, 20 U.S.C. § 1400 et 17 
seq., as it existed on January 1, 2023; 18 
 (b)  A student who is considered homeless under 19 
the McKinney-Vento Homeless Assistance Act, 42 U.S.C. § 11431 et seq., as it 20 
existed on January 1, 2023; 21 
 (c)  A foster child or a former foster child; 22 
 (d)(1)  A student who is currently 23 
participating in the Succeed Scholarship Program, § 6 -41-901 et seq. 24 
[repealed]. 25 
 (2)  A student who participated in the 26 
Succeed Scholarship Program during the 2022 -2023 school year and elects to 27 
enroll in the Arkansas Children's Educational Freedom Account Program under 28 
this subchapter shall receive one hundred percent (100%) of the prior year's 29 
statewide foundation funding amount allotted per student under § 6 -20-2305 30 
until: 31 
 (A)  The participating student 32 
graduates from high school; 33 
 (B)  The participating student 34 
receives a certificate of completion; or 35 
 (C)  An event that requires an 36    	SB625 
 
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account to be closed under § 6 -18-2505(f)(1) or § 6-18-2505(f)(2) occurs; 1 
 (e)  A child of active -duty uniformed service 2 
personnel, as identified under Title 10, Title 32, Title 33, or Title 42 of 3 
the United States Code; 4 
 (f)  A student who was enrolled in the previous 5 
school year in a: 6 
 (1)  Public school that has a rating of 7 
“F” under §§ 6-15-2105 and 6-15-2106 and State Board of Education rules; or 8 
 (2)  Public school district classified as 9 
in need of Level 5 — Intensive support under § 6 -15-2913 or § 6-15-2915; or 10 
 (g)  A student who is enrolling in kindergarten 11 
for the first time. 12 
 (ii)(a)  For the 2023 -2024 school year, a 13 
maximum of one and five-tenths percent (1.5%) of the 2022 -2023 total public 14 
school student enrollment may be approved to participate in the Arkansas 15 
Children's Educational Freedom Account Program. 16 
 (b)  However, the number of students approved 17 
to participate in the Arkansas Children's Educational Freedom Account Program 18 
under subdivision (a)(3)(A)(ii)(a) of this section shall not exceed the 19 
amount of funds made available for the Arkansas Children's Educational 20 
Freedom Account Program; 21 
 (B)(i)  For the 2024 -2025 school year, student eligibility shall 22 
expand to include students who meet at least one (1) of the following: 23 
 (a)  All students who are eligible under subdivision 24 
(a)(3)(A) of this section; 25 
 (b)  Students who were enrolled in the prior school 26 
year in public schools rated “D” or “F” under §§ 6 -15-2105 and 6-15-2106 and 27 
state board rules; and 28 
 (c)  Students whose parents are: 29 
 (1)  Veterans as identified under Title 38 of 30 
the United States Code; 31 
 (2)  In the uniformed service reserve 32 
components; 33 
 (3)  First responders; or 34 
 (4)  Law enforcement officers. 35 
 (ii)(a)  For the 2024 -2025 school year, a maximum of 36    	SB625 
 
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three percent (3%) of the 2022 -2023 total public school student enrollment 1 
may be approved to participate in the Arkansas Children's Educational Freedom 2 
Account Program. 3 
 (b)  The number of students approved to participate 4 
in the Arkansas Children's Educational Freedom Account Program under 5 
subdivision (a)(3)(B)(ii)(a) of this section shall: 6 
 (1)  Include any students who are continuing to 7 
participate in the Arkansas Children's Educational Freedom Account Program 8 
from the 2023-2024 school year; and 9 
 (2)  Not exceed the amount of funds made 10 
available for the Arkansas Children's Educational Freedom Account Program; 11 
and 12 
 (C)(i)  For the 2025 -2026 school year and each year 13 
thereafter, any resident of this state who is eligible to enroll in a public 14 
elementary or secondary school shall be eligible. 15 
 (ii)  Beginning with the 2025 -2026 school year, there 16 
shall be no limitation on student participation in the Arkansas Children's 17 
Educational Freedom Account Program. 18 
 (b)  In any year in which funds are insufficient to fund all 19 
applications for new accounts, first priority shall be given to students who 20 
are eligible under subdivision (a)(3)(A) of this section, followed by 21 
students eligible under subdivision (a)(3)(B) of this section Beginning with 22 
the 2025-2026 school year and each year thereafter, for any year in which 23 
funds are insufficient to fund all applications for new accounts under this 24 
subchapter, priority shall be given according to the following schedule by 25 
category first and then by submission time of a completed student 26 
application: 27 
 (1)  A student who participated in the Arkansas Children's 28 
Educational Freedom Account Program during the previous school year; 29 
 (2)  A student who participated in the Succeed Scholarship 30 
Program during the 2022 -2023 school year; 31 
 (3)  A student with a disability identified under the Individuals 32 
with Disabilities Education Act, 20 U.S.C. § 1400 et seq., as it existed on 33 
January 1, 2025; 34 
 (4)  A student who is considered homeless under the McKinney -35 
Vento Homeless Assistance Act, 42 U.S.C. § 11431 et seq., as it existed on 36    	SB625 
 
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January 1, 2025; 1 
 (5)  A foster child; 2 
 (6)  A student who was enrolled in the previous school year in a 3 
public school that has a rating of "D" or "F" under §§ 6 -15-2105 and 6-15-4 
2106 and State Board of Education rules; 5 
 (7)  A student whose parent is active -duty military, veterans 6 
identified under Title 38 of the United States Code, or current or former 7 
members of the Arkansas National Guard; 8 
 (8)  A student who is or has a parent who is a law enforcement 9 
officer; 10 
 (9)  A student who is or has a parent who is a first responder; 11 
 (10)  A student who is enrolling in kindergarten or first grade 12 
for the first time; and 13 
 (11)  Any other student for whom none of the categories under 14 
subdivisions (b)(1)-(10) of this section is appliable . 15 
 (c)  In any year in which funds are insufficient to fund all continuing 16 
accounts, priority shall be given to students who have been in the Arkansas 17 
Children’s Educational Freedom Account Program the longest after priority has 18 
been given to students identified under subsection (b) of this section. 19 
 (d) The State Board of Education state board shall promulgate rules: 20 
 (1)  For the implementation of the Arkansas Children’s 21 
Educational Freedom Account Program; and 22 
 (2)  To effectively and efficiently administer the Arkansas 23 
Children’s Educational Freedom Account Program, including without limitation: 24 
 (A)  The awarding of funds to participating students; 25 
 (B)  The oversight of the Arkansas Children’s Educational 26 
Freedom Account Program; and 27 
 (C)  Any other necessary aspects for the operation of the 28 
Arkansas Children’s Educational Freedom Account Program. 29 
 (e)(1)(d)(1) Except as provided under subdivision (e)(2) (d)(2) of 30 
this section, a participating student may only participate in and receive 31 
funds from one (1) of the following: 32 
 (A)  The Arkansas Children's Educational Freedom Account 33 
Program established by this subchapter; or 34 
 (B)  The Philanthropic Investment in Arkansas Kids Program 35 
Act, § 6-18-2301 et seq. 36    	SB625 
 
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 (2)(A)  A student with a disability as described by subdivision 1 
(a)(3)(A)(i)(a) (b)(3) of this section who has an annual family income that 2 
is less than or equal to two hundred percent (200%) of the federal poverty 3 
guidelines as determined annually in the Federal Register by the United 4 
States Department of Health and Human Services under 42 U.S.C. § 9902(2), as 5 
required under the Philanthropic Investment in Arkansas Kids Program may 6 
receive funds from both the Arkansas Children's Educational Freedom Account 7 
Program established by this subchapter and the Philanthropic Investment in 8 
Arkansas Kids Program. 9 
 (B)  However, a student who qualifies under subdivision 10 
(e)(2)(A) (d)(2)(A) of this section may receive funds from both the Arkansas 11 
Children's Educational Freedom Account Program established by this subchapter 12 
and the Philanthropic Investment in Arkansas Kids Program only to the extent 13 
necessary to cover qualifying expenses. 14 
 (f)(e) The student's parent shall submit an application for an account 15 
to the Department of Education in accordance with Arkansas Children’s 16 
Educational Freedom Account Program timelines established by the department 17 
Department of Education . 18 
 (g)(1)(f)(1) The department Department of Education shall create a 19 
standard form that a parent may submit to establish his or her child's 20 
eligibility for the program Arkansas Children's Educational Freedom Account 21 
Program. 22 
 (2)  The department Department of Education shall ensure that the 23 
standard form required under subdivision (g)(1) (f)(1) of this section is 24 
publicly available and may be submitted through various sources, including 25 
without limitation the internet. 26 
 (h)(1)(g)(1) As part of the application, a parent shall sign an 27 
agreement promising each of the following without limitation: 28 
 (A)(i)  Not to enroll his or her child full -time in a 29 
public school while his or her child is participating in the Arkansas 30 
Children’s Educational Freedom Account Program. 31 
 (ii)  However, a participating student may take 32 
approved courses at a public school participating as an approved provider; 33 
 (B)  To use account funds only for qualifying expenses of 34 
the participating student; 35 
 (C)  To comply with all Arkansas Children’s Educational 36    	SB625 
 
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Freedom Account Program requirements as established by the department 1 
Department of Education according to state board rules; and 2 
 (D)  Beginning with the 2024 -2025 school year, in the case 3 
of any account used for qualifying educational expenses not associated with 4 
full-time enrollment in a participating school or a participating service 5 
provider, to agree to provide an education for his or her participating 6 
student in at least the subjects of English language arts, mathematics, 7 
social studies, and science. 8 
 (2)  The signed agreement required under subdivision (h)(1) 9 
(g)(1) of this section shall satisfy the compulsory school attendance 10 
requirements of § 6-18-201. 11 
 (i)(h) The division Division of Elementary and Secondary Education 12 
shall: 13 
 (1)  Continue making deposits into a participating student’s 14 
account until: 15 
 (A)  The division determines that the participating student 16 
is no longer an eligible student; 17 
 (B)  The division determines that there was substantial 18 
evidence of misuse of account funds, as defined by the state board; 19 
 (C)  A parent or a participating student withdraws from the 20 
Arkansas Children’s Educational Freedom Account Program; 21 
 (D)  A participating student enrolls full -time in a public 22 
school; 23 
 (E)  A participating student graduates from high school; or 24 
 (F)  A participating student completes the school year in 25 
the year in which he or she turns twenty -one (21) years of age; or 26 
 (G)  The division determines a parent or participating 27 
student has, or intends to, commit fraudulent conduct; 28 
 (2)  Provide parents with a written explanation of the: 29 
 (A)  Allowable uses of funds; 30 
 (B)  Responsibilities of parents; and 31 
 (C)  Duties of the division and the role of any private 32 
financial management firms or other private organizations that the department 33 
Department of Education may contract with to administer the Arkansas 34 
Children’s Educational Freedom Account Program or any aspect of the Arkansas 35 
Children’s Educational Freedom Account Program; and 36    	SB625 
 
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 (3)  Annually fund a participating student’s account as funds are 1 
available and in accordance with this law and state board rules. 2 
 (j)(1)(i)(1) Upon notice to the division, a participating student may 3 
choose to stop receiving funds disbursed under this subchapter and enroll 4 
full-time in a public school. 5 
 (2)(A)  Enrolling as a full -time student in a public school shall 6 
result in the immediate suspension of payment of additional funds into the 7 
participating student’s account. 8 
 (B)(i)  However, for accounts that have been open for at 9 
least one (1) full academic year, the account shall remain open and active 10 
for the parent of a former participating student to make qualifying 11 
expenditures to educate the student from funds remaining in the account. 12 
 (ii)  When no funds remain in the former 13 
participating student’s account, the division may close the account The 14 
division shall close the participating student's account after the payment of 15 
all liabilities incurred before the participating student enrolls full	-time 16 
in a public school.  17 
 (3)(A)  If a former participating student decides to return to 18 
the Arkansas Children’s Educational Freedom Account Program and is a current 19 
eligible student, payments into the former participating student’s existing 20 
account may resume if the account is still open and active. 21 
 (B) A new account may be established if the a former 22 
participating student’s previous account was closed for any reason other than 23 
misuse of account funds or fraudulent conduct . 24 
 (k)(j) The state board and the department Department of Education may 25 
adopt rules to provide the least disruptive process for a participating 26 
student who desires to stop receiving funds disbursed under this subchapter 27 
and enroll full-time in a public school. 28 
 29 
 SECTION 6.  Arkansas Code § 6 -18-2507(a)(1)(B) and (C), concerning 30 
private school eligibility requirements under the Arkansas Children's 31 
Educational Freedom Account Program, are amended to read as follows: 32 
 (B)  A private school shall no longer be eligible if: 33 
 (i)  The private school has not received 34 
accreditation within four (4) years of becoming eligible; 35 
 (ii) The state board Division of Elementary and 36    	SB625 
 
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Secondary Education determines, based on information provided by the 1 
accrediting association, that the private school is ineligible or unable to 2 
continue the accreditation process; or 3 
 (iii) It becomes impossible for the private school to 4 
obtain accreditation within four (4) years. 5 
 (C)  A private school that becomes ineligible under this 6 
section shall regain eligibility when the private school receives 7 
accreditation and is approved by the state board meets all other requirements 8 
established by law and rule as determined by the division ; 9 
 10 
 SECTION 7.  Arkansas Code § 6 -18-2507(e) and (f), concerning Division 11 
of Elementary and Secondary Education duties regarding eligibility for 12 
participating schools and participating service providers under the Arkansas 13 
Children's Educational Freedom Account Program, are amended to read as 14 
follows: 15 
 (e)  The department may bar a service provider from accepting payments 16 
from accounts and restrict the service provider’s ability to serve additional 17 
participating students if the department determines that the participating 18 
service provider has: 19 
 (1)  Failed to maintain continuing eligibility criteria 20 
established by the state board; 21 
 (2)  Demonstrated a gross or persistent lack of academic 22 
competence or failure to provide services , as defined by the state board; 23 
 (3)  Intentionally or substantially misrepresented information or 24 
failed to refund any overpayments in a timely manner, as defined by the state 25 
board; or 26 
 (4)  Routinely failed to provide participating students with 27 
promised educational goods or services, as defined by the state board	; or 28 
 (5)  Committed, or intends to commit, fraudulent conduct . 29 
 (f)(1)  The department shall create procedures to ensure that a fair 30 
process exists to determine whether a participating service provider may be 31 
barred from receiving payments from accounts under subsection (e) of this 32 
section. 33 
 (2)  If the department bars a participating service provider from 34 
receiving payments from accounts under this section, it shall notify parents 35 
and participating students of its decision within three (3) business days of 36    	SB625 
 
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its decision on the department's website and through attempted individual 1 
communications. 2 
 (3)  A participating service provider may appeal the department’s 3 
decision to bar it from receiving payments from accounts to the state board. 4 
 5 
 SECTION 8.  DO NOT CODIFY. Severability clause.  If any provision of 6 
this act or the application of this act to any person or circumstance is held 7 
invalid, the invalidity shall not affect other provisions or applications of 8 
this act which can be given effect without the invalid provision or 9 
application, and to this end, the provisions of this act are declared 10 
severable. 11 
 12 
 SECTION 9.  EMERGENCY CLAUSE.  It is found and determined by the 13 
General Assembly of the State of Arkansas that the timely implementation of 14 
the proposed changes to the Arkansas Children's Educational Freedom Account 15 
Program is integral to the provision of educational services in the State of 16 
Arkansas.  Therefore, an emergency is declared to exist, and this act being 17 
immediately necessary for the preservation of the public peace, health, and 18 
safety shall become effective on: 19 
 (1)  The date of its approval by the Governor; 20 
 (2)  If the bill is neither approved nor vetoed by the Governor, 21 
the expiration of the period of time during which the Governor may veto the 22 
bill; or 23 
 (3)  If the bill is vetoed by the Governor and the veto is 24 
overridden, the date the last house overrides the veto. 25 
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