GREEN SHEET REDIGEST
HB 194 2022 Regular Session Butler
SCHOOLS/CHOICE: Creates and provides for a program to provide state funding
for the education of students with exceptionalities 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 and to refer cases
of misuse of account funds to the attorney general for investigation.
(b)Contract with a vendor or provider for the administration of the program or
parts of the program.
(4)A requirement that the program begin enrolling students by the beginning of the
2023-2024 school year.
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 base per-pupil allocation as
provided in the minimum foundation program (MFP) formula, plus any applicable
weighted funds based on student characteristics. Authorizes DOE to withhold up to
5% of funds allocated for each account annually for program administration.
(2)Develop a system for parents to direct account funds to participating schools and
service providers by electronic funds transfer, automated clearing house transfer, 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.
Eligibility; students
Page 1 of 4
Prepared by Jacob Wilson. 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.
(3)Shall be considered in attendance at a day school for purposes of compulsory
attendance.
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.
(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 schools and service providers in a
way that maximizes school and provider participation. 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
Page 2 of 4
Prepared by Jacob Wilson. Proposed law requires:
(1)DOE to develop a process for the annual administration of either of the following to
participating students:
(a)Any examination required pursuant to the school and district accountability
system at the prescribed grade level.
(b)A nationally norm-referenced test or a statewide assessment.
(2)DOE to develop a process for the collection and aggregate reporting of results and
ensure results are provided to parents.
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. Provides for required report content, including the results of a
parental satisfaction survey.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 17:236(A); adds R.S. 17:4037.1-4037.7)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Education to the
original bill:
1. Add that an eligible student shall be considered in attendance at a day school for
purposes of compulsory attendance.
2. Remove requirement that the entity contracted with for program administration
and for management of the payment system be a nonprofit organization.
3. Add that BESE rules shall include a requirement that the program begin enrolling
participating students by the beginning of the 2023-2024 school year.
4. Change funding amount from the state's per pupil amount allocated to the
student's resident school system, considering all student characteristics, to the
state's base per-pupil allocation, plus any applicable weighted funds based on
student characteristics.
5. Add that DOE may withhold funds allocated for program administration.
6. Delete use of a debit card from list of examples of funds transfer methods.
7. Relative to school eligibility:
(a)Remove requirement that a school must have existed and been providing
educational services to students with exceptionalities in an established
program with appropriately certified teachers for at least two years prior
to participation.
(b)Retain requirement that school be BESE-approved but remove
requirement for approval for at least the prior school year.
8. Relative to eligibility criteria for schools and service providers, require BESE to
set these in a way that maximizes school and provider participation.
9. Revise testing requirements.
Page 3 of 4
Prepared by Jacob Wilson. 10.Add results of parental satisfaction survey to content required in annual DOE
report.
The Committee Amendments Proposed by House Committee on Appropriations to the
engrossed bill:
1. Remove provision that specifies that funds in the account are not taxable income
of the parent.
2. Remove prohibition that account funds not be claimed as a credit, deduction,
exemption, or rebate under present law.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Education to the
reengrossed bill
1. Provides for prorated allocation to an account if a student transfers midyear.
2. Provides relative to compulsory attendance and reporting of children who fail to
meet attendance requirements.
3. Provides that children may only participate in one Education Savings Account.
4. Provides for action against a school or provider that fails to maintain eligibility
or demonstrates gross or persistent lack of academic competence.
5. Adds information to be included in the annual report.
Page 4 of 4
Prepared by Jacob Wilson.