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Regular Session, 2014
SENATE BILL NO. 656
BY SENATOR BUFFINGTON
FUNDS/FUNDING. Authorizes public or private entities to make certain donations to
various participating schools for recipients of student scholarship programs. (7/1/14)
AN ACT1
To amend and reenact R.S. 17:4016(A) and (B)(2), and 4017, and to enact R.S. 17:4019,2
relative to scholarships for certain students; to authorize public or private entities to3
make certain donations to various participating schools for recipients of scholarships;4
to provide for an effective date; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 17:4016(A) and (B)(2), and 4017 are hereby amended and reenacted7
and R.S. 17:4019 is hereby enacted to read as follows: 8
§4016. Scholarship amounts; funding9
A. The state board shall allocate annually from the minimum foundation10
program funds appropriated or otherwise available for the program an amount11
per pupil to each participating school equal to the amount allocated per pupil as12
provided in the minimum foundation program formula to the local school system13
in which the scholarship recipient resides, considering all student characteristics.14
This amount shall be counted toward the equitable allocation of funds appropriated15
to parish and city school systems as provided in Article VIII, Section 13(B) of the16
Constitution of Louisiana. For a participating school that charges tuition, if the17 SB NO. 656
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maximum amount of tuition plus incidental or supplementary fees that are charged1
to non-scholarship students enrolled in such school and any costs incurred in2
administering the tests required pursuant to R.S. 17:4023 is less than the amount3
allocated per pupil to the local school system in which the student resides, any4
remaining funds shall be returned to the state or to the local school system in which5
the scholarship recipient attended or otherwise would be attending public school for6
that year according to the pro rata share for the per pupil amount each year as7
determined by the minimum foundation program for the local school system in8
which the scholarship recipient attended or otherwise would be attending public9
school for that year then the amount allocated per pupil to the school shall be10
equal to the sum of such maximum tuition amount, such incidental or11
supplementary fees charged to non-scholarship students, and such testing costs.12
B.13
* * *14
(2) The parent or legal guardian may make a parental placement to receive15
special education and related services from a participating nonpublic school that has16
demonstrated the capacity to offer such services. In such case, the nonpublic school17
may charge a higher tuition for students receiving such services, and the state board18
shall allocate annually from the minimum foundation program funds appropriated19
or otherwise available to the program an amount per pupil to each participating20
nonpublic school equal to a special education tuition amount based on the cost of21
providing special education services identified for that student to the participating22
nonpublic school. This amount shall be in addition to the participating nonpublic23
school's maximum scholarship payment as described in Subsection A of this Section24
but the total of the payment and the special education tuition shall not exceed the25
amount that would be allocated pursuant to the minimum foundation program26
formula for that student to the local school system if the student otherwise would27
be attending public school.28
* * *29 SB NO. 656
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§4017. Payment of scholarships1
A. The department shall transfer scholarship payments to each participating2
school on behalf of the responsible city or parish school district. No locally levied3
school district tax revenues shall be transferred to any participating school located4
outside of the school district where the tax is levied or any participating nonpublic5
school within the district.6
B. The amount to be paid for a scholarship shall be divided into four equal7
payments to be made to each participating school in September, December,8
February, and May of each school year. Payments shall be based on per pupil count9
dates as determined by the department. No refunds shall be made to the department10
or to the parent or legal guardian if the scholarship recipient withdraws from the11
program or is otherwise not enrolled prior to the next count date. The school in12
which the scholarship recipient is enrolled on the next count date shall receive the13
next payment.14
B. Notwithstanding any other provision of this Chapter to the contrary,15
any public or private entity, including any nonprofit organization, may make16
a directed donation to any participating school for a student who is a recipient17
of a Student Scholarships for Educational Excellence scholarship.18
* * *19
§4019. Private scholarships20
A. Recognizing the success of the program and in order to maintain the21
long-term financial stability of the program, private businesses, industry,22
foundations, charities, and other groups may request from the division of23
administration that, notwithstanding any provision of law to the contrary, they24
may create privately funded scholarship programs to make payments to25
participating schools on behalf of individual students. If the division of26
administration were to approve such a private scholarship program then any27
private scholarship funds received by a participating school from such private28
scholarship program on behalf of a student shall cause a reduction in the dollar29 SB NO. 656
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amount of the Student Scholarships for Educational Excellence scholarship to1
the participating school attributable to that student such that the Student2
Scholarships for Educational Excellence scholarship associated with that3
student shall be an amount that is equal to the dollar amount that the Student4
Scholarships for Educational Excellence scholarship would have been if no such5
private scholarship funds had been received less the amount of private6
scholarship funds received by the participating school on behalf of that student.7
B. This Section shall in no way be interpreted in such a manner that a8
student could receive less benefits from a combination of the Student9
Scholarships for Educational Excellence scholarship and the private scholarship10
funded on his behalf than he would have received solely from the Student11
Scholarships for Educational Excellence scholarship if there had been no such12
private scholarship funded on his behalf. Therefore, to the extent any such13
privately funded scholarship funds provided for in this Section made to a14
participating school on behalf of a qualified student are for an amount less than15
the amount a given student would have otherwise received as a Student16
Scholarships for Educational Excellence scholarship if no such private17
scholarship funds had been paid under this Section, then the participating18
school shall receive that difference on behalf of the student as the student's19
Student Scholarships for Educational Excellence scholarship.20
C. As provided in this Section, when a participating school receives21
privately funded scholarship funds on behalf of a student pursuant to this22
Section, the annual appropriation of state funds for the Student Scholarships23
for Educational Excellence program shall be reduced by the amount of such24
private scholarship program funds so received. The state treasurer shall25
deposit the amount of such reduction as specified by the commissioner of26
administration into the Overcollections Fund created in R.S. 39:100.21 and27
credit such deposit to an account within the fund hereby established and created28
to be known as the "Program Participation Savings Account".29 SB NO. 656
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Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2014, or on the day following such approval by the legislature, whichever is later.3
The original instrument was prepared by Jay Lueckel. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Martha Hess.
DIGEST
Buffington (SB 656)
Present law provides for the establishment of the Student Scholarships for Educational
Excellence scholarship to meet the needs of certain students.
Proposed law retains present law relative to Student Scholarships for Educational Excellence
scholarship and also provides that any public or private entity, including any nonprofit
organization, may make a directed donation to any participating school for a student who is
a recipient of a Student Scholarships for Educational Excellence scholarship.
Proposed law adds a new section to the Student Scholarships for Educational Excellence
scholarship that private businesses, industry, foundations, charities, and other groups may
request the division of administration to create privately funded scholarship programs to
make payments to eligible colleges and universities to participating schools on behalf of
eligible students.
Proposed law provides that the new private scholarship program shall in no way be
interpreted in such a manner that a student would receive less benefits from the private
scholarship than he would have from the Student Scholarships for Educational Excellence
scholarship had there been no private scholarship program.
Proposed law provides relative to the Student Scholarships for Educational Excellence
scholarship, when an eligible college or university receives private scholarship funds on
behalf of a student, the annual appropriation of state funds shall be reduced by the amount
of the private scholarship funds so received. The state treasurer shall deposit the amount of
the reduction as specified by the commissioner of administration into the Overcollections
Fund and credit the deposit to an account in the fund known as the "Program Participation
Savings Account".
Effective July 1, 2014.
(Amends R.S. 17:4016(A) and (B)(2) and 4017; adds R.S. 17:4019)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Removes language regarding funding for the Student Scholarship for
Educational Excellence Program from the minimum foundation program.
2. Removes language regarding the Department of Education transferring
scholarship payments to each participating school on behalf of the
responsible city or parish school district.
3. Adds a new section to the Student Scholarship for Educational Excellence SB NO. 656
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Program that private businesses, industry, foundations, charities, and other
groups may request the division of administration to create privately funded
scholarship programs to make payments to eligible colleges and universities
to participating schools on behalf of eligible students.
4. Provides that the new private scholarship program shall in no way be
interpreted in such a manner that a student would receive less benefits from
the private scholarship than he would have from the Student Scholarship for
Educational Excellence Program had there been no private scholarship
program.
5. Provides relative to the Student Scholarship for Educational Excellence
Program, when an eligible college or university receives private scholarship
funds on behalf of a student, the annual appropriation of state funds shall be
reduced by the amount of the private scholarship funds so received. The
state treasurer shall deposit the amount of the reduction as specified by the
commissioner of administration into the Overcollections Fund and credit the
deposit to an account in the fund known as the "Program Participation
Savings Account".