Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 ENROLLED SENATE BILL NO. 656 BY SENATOR BUFFINGTON 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 department shall allocate annually from the minimum10 foundation program funds appropriated or otherwise available for the program11 an amount per pupil to each participating school equal to the amount allocated per12 pupil as provided in the minimum foundation program formula, inclusive of the13 calculations of both the local and state per pupil allocations, to the local school14 system in which the scholarship recipient resides, considering all student15 characteristics. This amount shall be counted toward the equitable allocation of16 funds appropriated to parish and city school systems as provided in Article VIII,17 Section 13(B) of the Constitution of Louisiana. For a participating school that18 ACT No. 779 SB NO. 656 ENROLLED Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. charges tuition, if the maximum amount of tuition plus incidental or supplementary1 fees that are charged to non-scholarship students enrolled in such school and any2 costs incurred in administering the tests required pursuant to R.S. 17:4023 is less3 than the amount allocated per pupil to the local school system in which the student4 resides, any remaining funds shall be returned to the state or to the local school5 system in which the scholarship recipient attended or otherwise would be attending6 public school for that year according to the pro rata share for the per pupil amount7 each year as determined by the minimum foundation program for the local school8 system in which the scholarship recipient attended or otherwise would be attending9 public school for that year then the amount allocated per pupil to the school shall10 be 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 department shall allocate annually from the minimum foundation program funds19 appropriated or otherwise available to the program an amount per pupil to each20 participating nonpublic school equal to a special education tuition amount based on21 the cost of providing special education services identified for that student to the22 participating nonpublic school. This amount shall be in addition to the participating23 nonpublic school's maximum scholarship payment as described in Subsection A of24 this Section but the total of the payment and the special education tuition shall not25 exceed the amount that would be allocated as provided in Subsection A of this26 Section for that student to the local school system if the student otherwise would be27 attending public school.28 * * *29 §4017. Payment of scholarships30 SB NO. 656 ENROLLED Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. A. The department shall transfer scholarship payments to each participating1 school on behalf of the responsible city or parish school district. No locally levied2 school district tax revenues shall be transferred to any participating school located3 outside of the school district where the tax is levied or any participating nonpublic4 school within the district.5 B. The amount to be paid for a scholarship shall be divided into four equal6 payments to be made to each participating school in September, December,7 February, and May of each school year. Payments shall be based on per pupil count8 dates as determined by the department. No refunds shall be made to the department9 or to the parent or legal guardian if the scholarship recipient withdraws from the10 program or is otherwise not enrolled prior to the next count date. The school in11 which the scholarship recipient is enrolled on the next count date shall receive the12 next payment.13 B. Notwithstanding any other provision of this Chapter to the contrary,14 any public or private entity, including any nonprofit organization, may make15 a directed donation to any participating school for a student who is a recipient16 of a Student Scholarships for Educational Excellence scholarship.17 * * *18 §4019. Private scholarships19 A. Recognizing the success of the program and in order to maintain the20 long-term financial stability of the program, private businesses, industry,21 foundations, charities, and other groups may request from the division of22 administration that, notwithstanding any provision of law to the contrary, they23 may create privately funded scholarship programs to make payments to24 participating schools on behalf of individual students. If the division of25 administration were to approve such a private scholarship program then any26 private scholarship funds received by a participating school from such private27 scholarship program on behalf of a student shall cause a reduction in the dollar28 amount of the Student Scholarships for Educational Excellence scholarship to29 the participating school attributable to that student such that the Student30 SB NO. 656 ENROLLED Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Scholarships for Educational Excellence scholarship associated with that1 student shall be an amount that is equal to the dollar amount that the Student2 Scholarships for Educational Excellence scholarship would have been if no such3 private scholarship funds had been received less the amount of private4 scholarship funds received by the participating school on behalf of that student.5 B. This Section shall in no way be interpreted in such a manner that a6 student could receive less benefits from a combination of the Student7 Scholarships for Educational Excellence scholarship and the private scholarship8 funded on his behalf than he would have received solely from the Student9 Scholarships for Educational Excellence scholarship if there had been no such10 private scholarship funded on his behalf. Therefore, to the extent any such11 privately funded scholarship funds provided for in this Section made to a12 participating school on behalf of a qualified student are for an amount less than13 the amount a given student would have otherwise received as a Student14 Scholarships for Educational Excellence scholarship if no such private15 scholarship funds had been paid under this Section, then the participating16 school shall receive that difference on behalf of the student as the student's17 Student Scholarships for Educational Excellence scholarship.18 C. As provided in this Section, when a participating school receives19 privately funded scholarship funds on behalf of a student pursuant to this20 Section, the annual appropriation of state funds for the Student Scholarships21 for Educational Excellence program shall be reduced by the amount of such22 private scholarship program funds so received. The commissioner of23 administration shall determine and specify the amount of the reduction from24 the source of the funds to provide the maximum benefit to the state from the25 privately funded scholarship program. The state treasurer shall deposit the26 amount of such reduction as specified by the commissioner of administration27 into the Overcollections Fund created in R.S. 39:100.21 and credit such deposit28 to an account within the fund hereby established and created to be known as the29 "Program Participation Savings Account".30 SB NO. 656 ENROLLED Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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 PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: