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 194 Original 2022 Regular Session Butler
Abstract: Creates and provides for the administration of a program for the purpose of providing
state funding for qualified education expenses for students with exceptionalities 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 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 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 do 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 is a student with an exceptionality as defined in present law – mental disability, hearing
loss (including deafness), multiple disabilities, deaf-blindness, speech or language
impairment, visual impairment (including blindness), emotional disturbance, orthopedic
impairment, other health impairment, specific learning disability, traumatic brain injury,
autism, or is deemed to be gifted or talented, and as a result requires special education and
related services; a student with an exceptionality may include a student aged three through
eight experiencing developmental delay. Proposed law provides that a student who is solely
deemed to be gifted and talent is not eligible.
(2)The student's parent submits a timely application.
(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 reaches the age of 21, whichever occurs first; 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.
Eligibility; schools and service providers
Proposed law provides that a school shall meet all of the following criteria to be eligible to
participate:
(1)Be approved by BESE for at least one school year prior to participation.
(2)Comply with criteria set forth in federal nondiscrimination requirements.
(3)Have existed and been providing educational services to students with exceptionalities as
defined in present law (not counting gifted and talented) in an established program with
appropriately certified teachers for at least two years prior to participation.
(4)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
that they would take if enrolled in public school 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 if students would take such tests or assessments if enrolled
in public school.
Reporting
Proposed law requires DOE, by April 30th annually, to submit a report 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. 17:4037.1-4037.7)