Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H581 Compare Versions

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22 HOUSE DOCKET, NO. 918 FILED ON: 1/14/2025
33 HOUSE . . . . . . . . . . . . . . . No. 581
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 William C. Galvin, (BY REQUEST)
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to educational freedom.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Paul McAuliffe1/14/2025 1 of 13
1616 HOUSE DOCKET, NO. 918 FILED ON: 1/14/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 581
1818 By Representative Galvin of Canton (by request), a petition (accompanied by bill, House, No.
1919 581) of Paul McAuliffe for legislation to create promise scholarship accounts composed of state
2020 funds deposited on behalf of participating students to be used for qualified education expenses.
2121 Education.
2222 [SIMILAR MATTER FILED IN PREVIOUS SESSION
2323 SEE HOUSE, NO. 481 OF 2023-2024.]
2424 The Commonwealth of Massachusetts
2525 _______________
2626 In the One Hundred and Ninety-Fourth General Court
2727 (2025-2026)
2828 _______________
2929 An Act relative to educational freedom.
3030 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3131 of the same, as follows:
3232 1 Chapter 15 of the General Laws is hereby amended by adding the following section:-
3333 2 Section 67. (a) As used in sections 67 through 74, inclusive, the following words shall
3434 3have the following meanings:
3535 4 “Account” or “promise scholarship account”, a consumer directed account and composed
3636 5of state funds deposited on behalf of a participating student and which may be used for qualified
3737 6education expenses.
3838 7 “Account funds”, the funds awarded on behalf of a participating student. 2 of 13
3939 8 “Curriculum”, a complete course of study for a particular content area or grade level,
4040 9including any supplemental materials required by the course of study.
4141 10 “Parent”, a biological parent, legal guardian, custodian or other person with legal
4242 11authority to act on behalf of a student.
4343 12 “Participating school”, a private school that has notified the department of its intention to
4444 13participate in the program and that complies with the department's requirements.
4545 14 “Participating student”, a student for whom a promise scholarship account has been
4646 15established.
4747 16 “Higher education institution” means a school which is: (1) a unit of the public
4848 17institutions of higher education system as provided in section 5 of chapter 15A; or (2) an
4949 18independent or private college or university located in the commonwealth.
5050 19 “Private school”, a nonpublic school, sectarian or nonsectarian, which is approved by a
5151 20school committee and provides comparable education to a public school pursuant to section 1 of
5252 21chapter 76.
5353 22 “Program”, the promise scholarship account program established pursuant to sections 67
5454 23through 74, inclusive.
5555 24 “Qualified education expenses”, any 1 or more of the following: (1) tuition, fees and
5656 25required textbooks at a participating school; (2) tuition, fees, and required textbooks at a
5757 26community college or accredited postsecondary institution; (3) tutoring services provided by an
5858 27educator certified by pursuant to section 38G of chapter 71; (4) payment for the purchase of a
5959 28curriculum, including any supplemental materials required by the curriculum; (5) tuition and fees 3 of 13
6060 29for a nonpublic online learning program or course; (6) services from a licensed physician or
6161 30therapist, including, but not limited to, for occupational, behavioral, physical or speech-language
6262 31therapies; (7) fees paid to a fee-for-service transportation provider for transportation to or from a
6363 32participating school or service provider, except that said fees shall not exceed $500 per year; (8)
6464 33fees for the management of account funds in accordance with subsection (e) of section 72; or (9)
6565 34computer hardware or other technological devices approved by the department or a physician if
6666 35the computer hardware or other technological device is used to meet the student's educational
6767 36needs.
6868 37 “Resident school system”, the public school system in which the student would be
6969 38enrolled based on their residence.
7070 39 “Service provider”, a person or entity that provides services that are covered as qualified
7171 40education expenses other than a participating school.
7272 41 Section 68. (a) A student shall qualify for a promise scholarship account if:
7373 42 (1) the student's parent or parents currently reside within the commonwealth;
7474 43 (2) the student was enrolled in and attended a public school in the commonwealth for at
7575 44least 6 weeks during the school year immediately preceding such student's initial or resumed
7676 45participation in the program;
7777 46 (3) the student's parent signs an agreement promising: (A) to provide an education for the
7878 47participating student in at least the subjects of reading, grammar, mathematics, social studies and
7979 48science; (B) not to enroll the student in a local school system school, local charter school or state 4 of 13
8080 49charter school while participating in the program; and (C) to use account funds only for qualified
8181 50education expenses of the participating student;
8282 51 (4) the student is not receiving special education in a private school paid for by a school
8383 52committee pursuant to chapter 71B, nor shall the student or the student’s family seek to receive
8484 53such special education in a private school at any time while participating in the program; and
8585 54 (5) the student's parent submits an application for an account to the department no later
8686 55than the deadline established by the department; provided, however, that the department shall
8787 56provide quarterly application periods that correspond with quarterly funding dates pursuant to
8888 57subsection (b) of section 70.
8989 58 (b) Upon acceptance of the account, the parent shall assume full financial responsibility
9090 59for the education of the participating student, including transportation to and from the
9191 60participating school or service provider.
9292 61 (c) Students enrolled in educational programming conducted in a house of correction or
9393 62state prison shall not be eligible for the program.
9494 63 (e) Subject to appropriation, a participating student shall continue to be eligible to receive
9595 64account funds until the student returns to a public school, graduates from high school or reaches
9696 65the age of 20 years, or for special education students, reaches the age of 22 years; provided,
9797 66however, that a student who participated in the program for any length of time before returning
9898 67to a public school shall submit a new application for an account in order to participate in the
9999 68program for a second or subsequent time. 5 of 13
100100 69 (d) For participating students with a disability, acceptance of an account shall have the
101101 70same effect as a parental refusal to consent to services pursuant to the Individuals with
102102 71Disabilities Education Act, 20 U.S.C. section 1414 and a parental waiver of rights to educational
103103 72accommodations under Section 504 of the federal Rehabilitation Act of 1973, 29 U.S.C. Section
104104 73701, et seq.
105105 74 (e) The creation of the program or the granting of an account shall not be construed to
106106 75imply that a public school did not provide a free and appropriate public education for a student or
107107 76constitute a waiver or admission by the commonwealth.
108108 77 (f) Any account funds directed to a participating school or service provider are so
109109 78directed wholly as a result of the genuine and independent private choice of the parent.
110110 79 (g) The parent of each student participating in the program shall comply fully with the
111111 80participating school or service provider's rules and policies.
112112 81 (h) Any parent who fails to comply with sections 67 to 74, inclusive and department
113113 82regulations relating to the program shall forfeit the account and all account funds therein.
114114 83 Section 69. (a) To be eligible to enroll a participating student, a participating school shall:
115115 84 (1) demonstrate fiscal soundness by having been in operation for 1 school year or by
116116 85submitting a financial information report for the school that complies with uniform financial
117117 86accounting standards established by the department and conducted by a certified public
118118 87accountant; provided, that he report shall confirm that the school desiring to participate is insured
119119 88and the owner or owners have sufficient capital or credit to operate the school for the upcoming
120120 89school year serving the number of students anticipated with expected revenues from tuition and 6 of 13
121121 90other sources that may be reasonably expected; and provided, further, that the report shall be
122122 91limited in scope to those records that are necessary for the department to make a determination
123123 92on fiscal soundness of the school;
124124 93 (2) comply with the antidiscrimination provisions of 42 U.S.C. Section 2000d;
125125 94 (3) comply with all health and safety laws or codes that apply to private schools;
126126 95 (4) Comply with section 1 of chapter 76 and any other state law applicable to private
127127 96schools; and
128128 97 (5) employ or contract with teachers who hold a bachelor's degree or higher degree or
129129 98have at least 3 years of experience in education and annually provide to the parents the relevant
130130 99credentials, including any teacher or subject matter certifications, of the teachers who will be
131131 100teaching their students.
132132 101 (b) A participating school or service provider may apply to the department to participate
133133 102in the program and accept account funds for providing services covered as qualified education
134134 103expenses.
135135 104 (c) The department shall establish standards that a participating school or service provider
136136 105shall meet to receive approval by the department to participate in the program.
137137 106 (d) The department shall, not later than 60 days after receiving a participating school's or
138138 107service provider's application for approval, notify such school or service provider as to whether
139139 108the application has been approved or denied. If the department denies an application, the
140140 109department shall provide a reason and notify the school or service provider that it may appeal the
141141 110decision to the parent review committee created pursuant to section 71. 7 of 13
142142 111 (e) A participating school and service provider shall not refund, rebate or share account
143143 112funds with a parent or student in any manner.
144144 113 (f) The creation of the program shall not be construed to expand the regulatory authority
145145 114of the commonwealth, its officers or any local school system to impose any additional regulation
146146 115of nonpublic schools beyond those reasonably necessary to enforce the requirements of sections
147147 11667 to 74, inclusive.
148148 117 Section 70. (a) Subject to appropriation, the account funds granted to a participating
149149 118student shall be $9,500 per school year.
150150 119 (b)(1) When a student enters the program, the department shall receive all documentation
151151 120required for the student's participation during a quarterly enrollment period pursuant to clause (5)
152152 121of subsection (a) of section 68 before the first quarterly account payment is made for the student.
153153 122 (2) Subject to appropriation and upon proper documentation received by the department,
154154 123the department shall make quarterly payments to the account of a participating student,
155155 124beginning with the first quarterly payment that corresponds with the enrollment period in which
156156 125the student's application was received. As nearly as practical, the quarterly payments shall be
157157 126equal.; provided, however, that this shall not prevent payments from being reduced pursuant to
158158 127section 9C of chapter 29. The state auditor shall cite as an audit exception any failure by the
159159 128department to meet any payment deadlines and shall include such audit exceptions on the
160160 129website established pursuant to section 14C of chapter 7.
161161 130 (3) The department shall develop a system for parents to direct account funds to
162162 131participating schools and service providers by electronic funds transfer, automated clearing-
163163 132house transfer or another system that the department finds to be commercially viable, cost- 8 of 13
164164 133effective and easy for parents of participating students to use. The department shall not adopt a
165165 134system that relies solely on reimbursing parents for out-of-pocket expenses, but may determine
166166 135certain qualified education expenses that shall require reimbursement or preapproval for
167167 136purchase. The department may qualify private financial management firms to manage the
168168 137payment system. The department, at its discretion, may create a system of individually funded
169169 138accounts or notional accounts funded through a single state account.
170170 139 (4) If the participating school requires partial payment of tuition prior to the start of the
171171 140academic year to reserve space for students admitted to the school, such partial payment may be
172172 141paid by the department prior to the first quarterly payment of the year in which the account is
173173 142awarded, up to a maximum of $1,000, and deducted from subsequent account payments. If a
174174 143student decides not to attend the participating school, the partial reservation payment shall be
175175 144returned to the department by the school. Only 1 reservation payment per student may be made
176176 145per year.
177177 146 (d) Funds received pursuant to this section shall not constitute taxable income of the
178178 147parent of the participating student.
179179 148 (e) Funds deposited into an account shall be used only for qualified education expenses
180180 149for the participating student. Unused funds in an account, up to an amount not greater than 50 per
181181 150cent of the total funds deposited into the account for the current school year, shall roll over to the
182182 151following school year; provided, however, that, if an account has been inactive for 2 consecutive
183183 152years, the funds in such account shall be returned to the General Fund and the account shall be
184184 153closed. Upon high school graduation of the participating student, any unused funds shall roll over
185185 154and may be used for tuition at a postsecondary institution located in the commonwealth. 9 of 13
186186 155 (f) Nothing in sections 67 to 74, inclusive, shall be deemed to prohibit a parent or student
187187 156from making a payment for any tuition, fee, service or product described in said sections 67 to
188188 15774, inclusive, from a source other than the account funds of the student.
189189 158 Section 71. (a) To assist in the determination of whether certain expenses meet the
190190 159requirements to be considered a qualified education expense under sections 67 to 74, inclusive, a
191191 160parent review committee shall be established.
192192 161 (b)(1) The committee shall be composed of 8 parents of participating students. Four of
193193 162the parents shall reside in communities with student enrollment of greater than 10,000, and4 of
194194 163the parents shall reside in communities with student enrollment of less than 10,000.
195195 164 (2) Members of the committee shall be appointed by and serve at the pleasure of the
196196 165commissioner.
197197 166 (3) Members of the committee shall serve for 1-year terms and may be reappointed.
198198 167 (4) The commissioner or the commissioner’s designee shall serve as the chair of the
199199 168committee and shall only vote in the event of a tie.
200200 169 (c) The department may request the committee to determine whether an expenditure of
201201 170account funds from an account qualifies as a qualified education expense under sections 67 to 74,
202202 171inclusive.
203203 172 (d) The department may request the committee review appeals of participating schools or
204204 173service provider application denials pursuant to subsection (d) of section 69.
205205 174 Section 72. (a) The department shall adopt rules and regulations as necessary for the
206206 175administration of the program and shall include rules and regulations regarding the selection of 10 of 13
207207 176participating students by a lottery process governed by chance if either the number of
208208 177participating students or the number of applications for accounts exceeds the funds available for
209209 178the program; provided, however, that continued participation in the program by participating
210210 179students shall be prioritized over new applications for accounts. The department shall adopt rules
211211 180and regulations regarding eligibility and participation of participating schools and service
212212 181providers, including, but not limited to, timelines that will maximize student and private school
213213 182participation, the calculation and distribution of accounts to participating students, and the
214214 183application and approval procedures for participating students, participating schools, and service
215215 184providers. The department shall develop and utilize a compliance form for completion by
216216 185participating schools and service providers. The department shall be authorized to require any
217217 186pertinent information as it deems necessary from participating schools and service providers for
218218 187the purpose of implementing the program. Participating schools and service providers shall be
219219 188required to complete such forms and certify their accuracy.
220220 189 (b) No liability shall arise on the part of the department or the commonwealth or of any
221221 190local board of education based on the award or use of an account awarded pursuant to sections
222222 19167 to 74, inclusive.
223223 192 (c) The department shall have the authority to conduct or contract for the auditing of
224224 193accounts and shall, at a minimum, conduct random audits on an annual basis. The department
225225 194shall have the authority to make any parent or participating student ineligible for the program in
226226 195the event of misuse of account funds.
227227 196 (d) The department shall have the authority to refer cases of substantial misuse of account
228228 197funds to the attorney general for investigation if evidence of fraudulent use is obtained. 11 of 13
229229 198 (e) The department may deduct an amount from accounts to cover the costs of overseeing
230230 199and administering the program, up to a maximum of 3 per cent annually.
231231 200 (f) The department may contract with a qualified nonprofit organization to administer the
232232 201program or specific functions of the program.
233233 202 (g) The department shall provide parents of participating students with an explanation of
234234 203the allowable uses of account funds, the responsibilities of parents and the duties of the
235235 204department.
236236 205 Section 73. (a)(1) In order to allow parents and taxpayers to measure the achievements of
237237 206the program, the department shall annually approve no fewer than 3 nationally norm-referenced
238238 207tests that measure student academic progress in math and language arts.
239239 208 (2) Private schools enrolling participating students shall ensure that all participating
240240 209students are annually administered a nationally norm-referenced test identified by the department
241241 210or a state-wide assessment administered pursuant to section 1D of chapter 69 of the General
242242 211Laws, which shall be made available by the resident school system.
243243 212 (3) The department shall develop a process for the annual administration of a nationally
244244 213norm-referenced test or a state-wide assessment and the collection of results for participating
245245 214students not enrolled full time in a private school.
246246 215 (b) The results of such norm-referenced tests or state-wide assessments shall be provided
247247 216to and collected by the department or an organization chosen by the department on an annual
248248 217basis. 12 of 13
249249 218 (c) Student information shall be reported and collected in a manner that allows the
250250 219commonwealth to aggregate data by grade level, gender, family income level and race.
251251 220 (d) The department or an organization chosen by the department shall collect information
252252 221regarding the high school graduation of all participating students.
253253 222 Section 74. (a) The department shall annually file with the clerks of the house of
254254 223representatives and the senate not later than December 1 a report regarding the program for the
255255 224previous fiscal year. The report shall also be posted on the department's website.
256256 225 (b) The report shall include, but not be limited to, numbers and demographics of
257257 226participating students and numbers of participating schools. The report shall also include: (1)
258258 227participating student performance on nationally norm-referenced tests or state-wide assessments,
259259 228including aggregate information on long-term performance gains; (2) the level of satisfaction
260260 229with the program from parents of participating students; (3) the percentage of funds used for
261261 230each type of qualified education expense included enumerated in section 67; and (4) the fiscal
262262 231impact to the state and resident school systems of the program, taking into consideration both the
263263 232impact on revenue and the impact on expenses. The fiscal savings associated with students
264264 233departing public schools shall be explicitly quantified, even if the public school losing the
265265 234student or students does not reduce its spending.
266266 235 (c) The report shall apply appropriate analytical and behavioral science methodologies to
267267 236ensure public confidence in the report.
268268 237 (d) The report shall protect the identity of participating students through whatever means
269269 238the department deems appropriate, including, but not limited to, by keeping anonymous all
270270 239disaggregated data and complying with state and federal guidelines for student privacy. The 13 of 13
271271 240names of participating schools and the number of participating students at each such school shall
272272 241be included in the report.
273273 242 (e) The state auditor shall audit the program annually. Audit reports, including, but not
274274 243limited to, any findings and recommendations by the state auditor, shall be included in the first
275275 244annual report submitted by the department following completion of each audit of the program by
276276 245the department of the state auditor. Nothing in this subsection shall be construed to limit the
277277 246authority of the state auditor to conduct an audit at any time.