DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 556 Engrossed 2021 Regular Session DeVillier
Abstract: Creates and provides for the administration of a program for the purpose of providing
state funding for qualified education expenses for students in grades kindergarten through
12 who are not enrolled in a public school.
Education Savings Account (ESA) Program; creation and administration
Proposed law creates the Education Savings Account (ESA) Program and provides for program
administration by the state Dept. of Education (DOE) in accordance with State Board of Elementary
and Secondary Education (BESE) rules which shall, at minimum, provide for:
(1)Determination of eligibility of students, participating schools, and service providers.
(2)Audits of the program and accounts.
(3)DOE's authority to:
(a)Deem any participating student ineligible for the program in the event of the misuse
of account funds and to refer cases of misuse of account funds to the attorney general
for investigation.
(b)Contract with a nonprofit organization for the administration of the program or parts
of the program.
Funds
Proposed law requires DOE to:
(1)Allocate to each account annually, from funds appropriated or otherwise available for the
program, an amount equal to the state's per-pupil allocation as provided in the minimum
foundation program (MFP) formula, considering all student characteristics.
(2)Develop a system for parents to direct account funds to participating schools and service
providers by electronic funds transfer, automated clearing house transfer, the use of a debit
card, or another system. Proposed law further provides as follows:
(1)Limits authorized use of funds to qualified education expenses.
(2)Unused funds in an account, up to an amount not greater than 50% of the total funds
deposited into the account for the current school year, shall remain in the account for the
following school year.
(3)The account shall be closed and the funds in the account shall be returned to the state general
fund if a student is no longer eligible, if an account has been inactive for two consecutive
years, or if a parent fails to comply with program requirements.
(4)Account funds shall not constitute taxable income and shall not be claimed as a credit,
deduction, exemption, or rebate.
Eligibility; students
Proposed law provides that a student shall be initially eligible for an account if he is eligible to enroll
in kindergarten or was enrolled in a La. public school during the previous school year and meets all
of the following criteria:
(1)He meets at least one of these criteria:
(a)He has a parent or legal guardian who is an active duty military service member.
(b)His parent or legal guardian submitted an enrollment request for a transfer pursuant
to present law (R.S. 17:4035.1) during the most recent transfer request period and the
request was denied.
(c)Pursuant to foster care placement through the Dept. of Children and Family Services,
he is residing with a prospective permanent placement or has achieved permanency
through adoption or permanent guardianship.
(2)The student's parent submits an application for an ESA in accordance with program
timelines.
(3)The student's parent signs an agreement promising all of the following:
(a)To provide an education for the participating student in at least the subjects of
English language arts, math, social studies, and science.
(b)Not to enroll the student in a public school while participating in the program.
(c)To use account funds only for qualified education expenses of the participating
student. (d)To comply with all program requirements.
Proposed law further provides that a participating student:
(1)Is eligible until he enrolls in a public school, he receives a high school diploma or its
equivalent, or his account is closed.
(2)Is prohibited from participating concurrently in the ESA program and the Course Choice
Program, the Student Scholarships for Excellence Program, the School Choice Program for
Certain Students with Exceptionalities, or the Tuition Donation Credit Program.
Students with exceptionalities
Proposed law requires, if a student would have been entitled to special education services in his
resident school system, his parent to acknowledge in writing that he agrees to accept only such
services as are available to all students enrolled in the participating school. Requires participating
schools to meet certain criteria to be eligible to offer such services.
Eligibility; schools and service providers
Proposed law provides to be eligible to participate in the program, a school shall meet all of the
following criteria:
(1)Be approved, provisionally approved, or probationally approved by BESE.
(2)Comply with criteria set forth in federal nondiscrimination requirements.
(3)Any other criteria set by BESE.
Proposed law requires BESE to set eligibility criteria for service providers and provides that to be
eligible to participate in the program, both schools and service providers shall apply to DOE and,
if determined to be eligible, accept ESA funds for providing services covered as qualified education
expenses.
Testing
Proposed law requires:
(1)Participating schools to ensure that participating students are administered all examinations
required pursuant to present law at the prescribed grade levels and that the results of such
examinations are provided to parents.
(2)DOE to develop a process for the annual administration of a nationally norm-referenced test
or a statewide assessment and the collection of results for participating students not enrolled
full time in a participating school. Reporting
Proposed law requires DOE, by April 30th annually, to submit to the House and Senate education
committees and the Jt. Legislative Committee on the Budget regarding program implementation.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 17:4036.1 - 4036.8)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Education to the original bill:
1. Prohibit account funds from being claimed as a credit, deduction, exemption, or rebate.
2. Revise student eligibility criteria.