HLS 22RS-164 ORIGINAL 2022 Regular Session HOUSE BILL NO. 33 BY REPRESENTATIVES DEVILLIER AND ROMERO SCHOOLS/CHOICE: Creates and provides for a program to provide state funding for the education of students not enrolled in public school 1 AN ACT 2To enact Chapter 43-C of Title 17 of the Louisiana Revised Statutes of 1950, to be 3 comprised of R.S. 17:4037.1 through 4037.8, relative to elementary and secondary 4 education; to create and provide for the administration of a program to provide state 5 funding for the education of students not enrolled in public school; to provide 6 relative to the eligibility of students, schools, and service providers participating in 7 the program; to provide relative to program funds; to provide relative to the testing 8 of students participating in the program; to require the state Department of Education 9 to submit annual reports to the legislature relative to the program; to provide relative 10 to rules; to provide relative to definitions; to provide for an effective date; and to 11 provide for related matters. 12Be it enacted by the Legislature of Louisiana: 13 Section 1. Chapter 43-C of Title 17 of the Louisiana Revised Statutes of 1950, 14comprised of R.S. 17:4037.1 through 4037.8, is hereby enacted to read as follows: 15 CHAPTER 43-C. EDUCATION SAVINGS ACCOUNT PROGRAM 16 §4037.1. Definitions 17 As used in this Chapter the following terms have the following meanings, 18 unless the context clearly indicates otherwise: Page 1 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 1 (1) "Account" means an education account established pursuant to this 2 Chapter and composed of state funds deposited on behalf of a student eligible to 3 participate in the program. 4 (2) "Account funds" means the funds deposited into an account on behalf of 5 a participating student. 6 (3) "Department" means the state Department of Education. 7 (4) "Parent" means a parent, legal guardian, custodian, or other person or 8 entity with legal authority to act on behalf of a student. 9 (5) "Participating school" means a nonpublic school participating in the 10 program pursuant to the requirements of this Chapter. 11 (6) "Participating student" means a student who has been determined to be 12 eligible to participate in the program and for whom an account has been established 13 pursuant to this Chapter. 14 (7) "Program" means the program created by this Chapter. 15 (8) "Qualified education expenses" means any of the following: 16 (a) Tuition, fees, and textbooks required by a participating school or service 17 provider. 18 (b) Tutoring services provided by an educator with a valid Louisiana 19 teaching certificate. 20 (c) Supplemental materials required by a course of study for a particular 21 content area. 22 (d) Technological devices used to meet the student's educational needs, 23 subject to approval by the department or a licensed physician. 24 (9) "Resident school system" means the public school system in which the 25 student would be enrolled based on his residence. 26 (10) "Service provider" means a person or an entity other than a participating 27 school that provides services that are covered as qualified education expenses. 28 (11) "State board" means the State Board of Elementary and Secondary 29 Education. Page 2 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 1 §4037.2. Program creation and administration; powers and duties of the State Board 2 of Elementary and Secondary Education and state Department of Education; 3 rules 4 The Education Savings Account Program is hereby created. The department 5 shall administer the program, and the state board shall adopt rules and regulations 6 for the administration of the program which shall, at minimum, provide for the 7 following: 8 (1) Determination of the eligibility of students, participating schools, and 9 service providers, including standards that schools and service providers shall meet 10 as conditions of participation in the program. 11 (2) Audits of the program and accounts. 12 (3) The authority of the department to deem any participating student 13 ineligible for the program and to refer a case involving the misuse of account funds 14 to the attorney general for investigation. 15 (4) The authority of the department to contract with a nonprofit organization 16 for the administration of the program or parts of the program. 17 §4037.3. Account funds 18 A. The department shall allocate to each account annually, from funds 19 appropriated or otherwise made available for the program, an amount equal to the 20 state's per-pupil allocation to the resident school system as provided in the minimum 21 foundation program formula, considering all student characteristics. 22 B. The department shall develop a system for parents to direct account funds 23 to participating schools and service providers by electronic funds transfer, automated 24 clearing house transfer, the use of a debit card, or another system. The department 25 may contract with a private financial management firm to manage the payment 26 system. 27 C.(1) Account funds shall be used only for qualified education expenses for 28 the participating student. Unused funds in an account, up to fifty percent of the total Page 3 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 1 funds deposited into the account for the current school year, shall be retained in the 2 student's account for the following school year. 3 (2) The account shall be closed and the funds in the account shall be returned 4 to the state general fund if the student is determined to be no longer eligible, if an 5 account has been inactive for two consecutive years, or if a parent fails to comply 6 with the provisions of this Chapter or state board rules pertaining to the program. 7 D. Account funds do not constitute taxable income of the parent of the 8 participating student and shall not be claimed as a credit, deduction, exemption, or 9 rebate under Title 47 of the Louisiana Revised Statutes of 1950. 10 §4037.4. Student eligibility; initial and continuing 11 A. A student is initially eligible for an account if he is eligible to enroll in 12 kindergarten or was enrolled in a Louisiana public school during the previous school 13 year and meets all of the following criteria: 14 (1) He meets at least one of the following criteria: 15 (a) He has a parent who is an active duty military service member. 16 (b) His parent submitted an enrollment request for an interdistrict or 17 intradistrict transfer pursuant to R.S. 17:4035.1 during the most recent transfer 18 request period and such request was denied. 19 (c) Pursuant to foster care placement through the Department of Children 20 and Family Services, he is residing with a prospective permanent placement or has 21 achieved permanency through adoption or permanent guardianship. 22 (2) The student's parent submits an application for an account to the 23 department in accordance with program timelines. 24 (3) The student's parent signs an agreement promising all of the following: 25 (a) To provide an education for the participating student in at least the 26 subjects of English language arts, mathematics, social studies, and science. 27 (b) Not to enroll the student in a public school while participating in the 28 program. Page 4 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 1 (c) To use account funds only for qualified education expenses of the 2 participating student. 3 (d) To comply with all program requirements. 4 B.(1) The signed agreement pursuant to Paragraph (A)(3) of this Section 5 satisfies the compulsory school attendance requirements of R.S. 17:221. 6 (2) A participating student is eligible to continue to participate in the 7 program until he enrolls in a public school, he receives a high school diploma or its 8 equivalent, or his account is closed. 9 C. A participating student shall not participate in any of the following 10 concurrently with this program: the Course Choice Program, the Student 11 Scholarships for Educational Excellence Program, the School Choice Program for 12 Certain Students with Exceptionalities, or the Tuition Donation Credit Program. 13 §4037.5. Schools and service providers; eligibility; participation 14 A. To be eligible to participate in the program, a school shall meet all of the 15 following criteria: 16 (1) It has been approved, provisionally approved, or probationally approved 17 by the state board pursuant to R.S. 17:11. 18 (2) It is in compliance with the criteria set forth in Brumfield, et al. v. Dodd, 19 et al., 425 F. Supp. 528 (E.D. La. 1977). 20 (3) It meets any other eligibility criteria set by the state board in program 21 rules. 22 B. The state board shall provide eligibility criteria for service providers in 23 program rules. 24 C. To be eligible to participate in the program, a school or service provider 25 shall apply to the department to participate in the program and, if determined to be 26 eligible, accept account funds for providing services covered as qualified education 27 expenses. Page 5 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 1 §4037.6. Student with exceptionalities 2 A. If a participating student enrolled in a participating school would have 3 been entitled to receive special education services in the resident school system, his 4 parent shall acknowledge in writing, as part of the program enrollment process, that 5 the parent agrees to accept only such services as are available to all students enrolled 6 in the participating school. 7 B. A parent may make a parental placement to receive special education and 8 related services from a participating school that has demonstrated the capacity to 9 offer such services. 10 C.(1) A participating school shall not discriminate against a child with 11 special educational needs during the program admissions process. However, a 12 participating school is required to offer only those services that it already provides 13 or such services as necessary to assist students with special needs that it can provide 14 with minor adjustments. A participating school may partner with the local school 15 system to provide special education services. 16 (2) Information regarding the services a participating school can provide and 17 the services the resident school system can provide to children with special needs 18 who are enrolled in a participating school shall be made available by the department 19 to parents prior to the enrollment process. 20 D. The department shall determine whether a participating school has a 21 demonstrated capacity to offer special education services. A participating school 22 that desires to offer special education services shall inform the department of the 23 types of student exceptionalities as defined in R.S. 17:1942 that the school is able to 24 serve. The department may authorize the school to provide such services only if the 25 school has existed and provided educational services to students with exceptionalities 26 as defined in R.S. 17:1942, excluding students deemed to be gifted or talented, for 27 at least two years prior to participation in the program, and such provision of services 28 is pursuant to an established program in place at the school that includes instruction 29 by teachers holding appropriate certification in special education or other appropriate Page 6 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 1 education or training as defined by the department and that is in accordance with a 2 student's Individual Education Plan. 3 §4037.7. Testing 4 A. A participating school shall ensure that participating students are 5 administered all examinations required pursuant to the school and district 6 accountability system at the prescribed grade levels and that the results of such 7 examinations are provided to parents. 8 B. The department shall develop a process for the annual administration of 9 a nationally norm-referenced test or a statewide assessment and the collection of 10 results for participating students not enrolled full time in a participating school. 11 §4037.8. Reports 12 Not later than April thirtieth of each year, the department shall submit a 13 written report to the House Committee on Education, the Senate Committee on 14 Education, and the Joint Legislative Committee on the Budget regarding the 15 implementation of the program. The report, at a minimum, shall include the 16 following information: 17 (1) The total number of students participating in the program. 18 (2) A list of all participating schools and service providers. 19 (3) The total student enrollment of each participating school, the number of 20 participating students enrolled in each school, and the percentage of the total 21 enrollment of each school represented by program participants. 22 (4) Aggregate test result data for participating students. 23 (5) The percentage of funds used for each type of qualified education 24 expense. 25 (6) An analysis of the program's fiscal impact on the state and on local public 26 school systems. 27 Section 2. This Act shall become effective upon signature by the governor or, if not 28signed by the governor, upon expiration of the time for bills to become law without signature 29by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If Page 7 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 1vetoed by the governor and subsequently approved by the legislature, this Act shall become 2effective on the day following such approval. 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 33 Original 2022 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 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. Page 8 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 (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 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 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 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. Page 9 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-164 ORIGINAL HB NO. 33 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, 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 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 - 4037.8) Page 10 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions.