GREEN SHEET REDIGEST
HB 556 2021 Regular Session DeVillier
SCHOOLS/CHOICE: Creates and provides for a program to provide state funding
for the education of students not enrolled in public school
DIGEST
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 made
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.
Page 1 of 3
Prepared by Cheryl Serrett. 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 or legal guardian submits an application for an ESA in
accordance with program timelines.
(3)The student's parent or legal guardian 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 Educational 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.
Page 2 of 3
Prepared by Cheryl Serrett. (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.
The House Floor Amendments to the reengrossed bill:
1. Make technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Education to the re-
reengrossed bill
1. Make technical changes.
Page 3 of 3
Prepared by Cheryl Serrett.