Printed on recycled paper 132nd MAINE LEGISLATURE FIRST REGULAR SESSION-2025 Legislative Document No. 220H.P. 143House of Representatives, January 21, 2025 An Act to Establish the Hope and Inclusion Scholarship Program in Order to Provide Funding for Students Attending Certain Private Schools and Students Receiving Home Instruction Reference to the Committee on Education and Cultural Affairs suggested and ordered printed. ROBERT B. HUNT Clerk Presented by Representative BAGSHAW of Windham. Cosponsored by Senator LIBBY of Cumberland and Representatives: CAMPBELL of Orrington, COLLINS of Sidney, HAGGAN of Hampden, LYMAN of Livermore Falls, SCHMERSAL-BURGESS of Mexico, SWALLOW of Houlton, Senators: BRADSTREET of Kennebec, GUERIN of Penobscot. Page 1 - 132LR0548(01) 1 2 is enacted to read: 3 Hope and Inclusion Scholarship Board Expenses Only for Public Members appointed pursuant to Title 20-A, section 6997, subsection 2, paragraph A, subparagraph (7) 20-A MRSA ยง6997 4 is enacted to read: 11 12 13 14 The Hope and Inclusion Scholarship Program is established to provide hope accounts 15 for qualifying expenses in accordance with this chapter. 16 As used in this chapter, unless the context otherwise indicates, the 17 following terms have the following meanings. 18 A. "Board" means the Hope and Inclusion Scholarship Board established in subsection 19 2. 20 B. "Hope account" means an account established under the program to be used for 21 qualifying expenses in accordance with this chapter. 22 C. "Program" means the Hope and Inclusion Scholarship Program established in this 23 chapter. 24 D. "Public school" means a school administrative unit or a public charter school 25 authorized under chapter 112. 26 E. "Qualified school" means a private school approved for attendance purposes 27 pursuant to chapter 117. 28 F. "Qualified student" means a person eligible to enroll in a public school within the 29 State in accordance with section 5001-A. 30 G. "Qualifying expense" means an approved expense incurred in direct connection 31 with attendance at a qualified school or a student's educational experience. 32 The Hope and Inclusion Scholarship 33 Board, as established in Title 5, section 12004-C, subsection 10, is established to administer 34 the program in accordance with this chapter. 35 A. The board is composed of the following 9 members: 36 (1) The Treasurer of State, who serves as the chair of the board; 37 (2) The State Auditor or the State Auditor's designee; 4 5 6 7 8 9 10 Page 2 - 132LR0548(01) 1 (3) The Attorney General; 2 (4) The Commissioner of Education; 3 (5) The Chancellor of the University of Maine System; 4 (6) One of the chairs of the Permanent Commission on the Status of Racial, 5 Indigenous and Tribal Populations, as established in Title 5, section 12004-J, 6 subsection 19, selected by the commission; and 7 (7) Three residents of the State who have children who have not attained 21 years 8 of age, appointed for 3-year terms by the Governor. 9 B. The board, with the assistance of the department, shall administer the program in 10 accordance with this chapter. 11 C. The board may take all actions necessary to successfully administer the program in 12 accordance with applicable laws, including, but not limited to, executing contracts, 13 employing personnel, engaging the services of private consultants, actuaries, auditors, 14 counsel or managers and adopting rules necessary to administer the program. 15 The board shall establish hope accounts as follows. 16 A. The board by rule shall establish an application process for a parent of a qualified 17 student to request the establishment of a hope account. The board: 18 (1) May establish a hope account for a qualified student only if the qualified 19 student will be receiving education provided by a qualified school or receiving 20 home instruction under section 5001-A, subsection 3, paragraph A, subparagraph 21 (4); 22 (2) May establish a hope account for a qualified student who will be receiving 23 education provided by a qualified school but who will receive some education 24 through a public school as long as the majority of the qualified student's education 25 is being provided by a qualified school; and 26 (3) May establish a hope account for a qualified student whose parent has agreed 27 to use the qualified student's hope account only for qualifying expenses. 28 B. The board may authorize private financial management entities to manage hope 29 accounts established under this subsection and may establish reasonable fees for 30 services that a private financial management entity may charge to a hope account. 31 The board may annually renew a hope account 32 and deposit funds into the hope account if the parent of a qualified student for whom a hope 33 account was established under subsection 3 applies for a renewal and the board finds that 34 the requirements of this subsection and rules adopted under this chapter have been met. 35 A. Unspent funds in a hope account that is renewed remain in the hope account and 36 may be used in accordance with this chapter. 37 B. To qualify for a renewal of a hope account, the qualified student must: 38 (1) Be a resident of this State; 39 (2) Have not attained 21 years of age; 40 (3) Have not successfully completed a secondary education; Page 3 - 132LR0548(01) 1 (4) If enrolled in a qualified school, have met the educational standards and 2 requirements of that qualified school and be in good standing, as demonstrated by 3 certification from the qualified school, except that, if the qualified student is in an 4 individualized education plan, the qualified student must have met minimum 5 educational standards established by the department by rule either by achieving 6 specified results on a national norm-referenced achievement test or by certification 7 by a certified teacher; and 8 (5) If not enrolled in a qualified school, agree to show academic progress through 9 a standardized achievement test, an approved national norm-referenced 10 achievement test or, if eligible, have demonstrated academic progress under 11 section 5001-A, subsection 3, paragraph A, subparagraph (4), division (b). 12 C. If a parent of a qualified student for whom a hope account was established does not 13 apply for a renewal or the board finds that the requirements of this section or rules 14 adopted under this chapter have not been met, the board shall close the hope account 15 and transfer all funds in the hope account to the State Controller, who shall transfer 16 these funds to the unappropriated surplus of the General Fund. 17 The board shall oversee hope accounts as follows. 18 A. Each year, the board shall direct the department to deposit into each active hope 19 account 90% of the state subsidy, as defined in section 15672, subsection 31-A, 20 attributable to the qualified student for whom the hope account is established that 21 would otherwise have been provided to the qualified student's school administrative 22 unit under chapter 606-B. The department shall also direct that school administrative 23 unit to deposit into the hope account 90% of the school administrative unit's required 24 contribution to the school administrative unit's total cost of education attributable to 25 that qualified student. The department shall calculate these amounts and shall allocate 26 the state funds to the extent possible in a manner consistent with the schedules 27 applicable to state subsidy payments pursuant to section 15689-B. New funds may not 28 be deposited in a hope account after the qualified student graduates from high school. 29 B. The board may receive for and use to pay the costs of administering this chapter up 30 to 3% of the state subsidy attributable to the qualified student for whom a hope account 31 is established. 32 C. The board shall establish and administer a hope account in a manner that allows the 33 parent of the qualified student for whom the hope account is established to expend 34 funds in the account only for the following qualifying expenses, and the parent may 35 use funds in the hope account only to pay for the following qualifying expenses: 36 (1) Services provided by a public school, including, but not limited to, individual 37 classes, extracurricular or after-school activities and programs and summer 38 educational programs; 39 (2) Tuition or fees at a qualified school; 40 (3) Textbooks required by a qualified school; 41 (4) Basic educational supplies, including, but not limited to, paper, writing 42 implements and computer hardware and technological devices primarily used for 43 an educational purpose. For the purposes of this subparagraph, "computer 44 hardware and technological devices" includes calculators, personal computers, Page 4 - 132LR0548(01) 45 laptops, tablet devices, microscopes, telescopes and printers and does not include 46 entertainment and other primarily noneducational devices such as televisions, 47 telephones, video game consoles and accessories and home theater and audio 48 equipment; 5 (5) Tutoring or teaching services provided by an individual or a facility accredited 6 by a state, regional or national accrediting organization; 7 (6) Curricula and supplementary materials; 8 (7) Tuition or fees for a private online learning program; 9 (8) Fees for a national norm-referenced achievement test, fees for a standardized 10 achievement test or a test developed by school officials administered through the 11 qualified student's school administrative unit, an advanced placement examination 12 or any examination related to college or university admission; 13 (9) Tuition or fees for a program of study or a curriculum of courses that lead to an 14 industry-recognized credential that satisfies a workforce need, as determined by 15 the department by rule; 16 (10) Tuition, fees and materials for enrollment in dual credit or college-level 17 courses; 18 (11) Fees to manage the hope account; 19 (12) Educational services and therapies, including, but not limited to, occupational, 20 behavioral, physical, speech-language and audiology therapies; 21 (13) Uniforms purchased through a qualified school; and 22 (14) Public transportation services. 23 D. The board shall review all expenditures from hope accounts to ensure that they are 24 in accordance with the requirements of this subsection and rules adopted under this 25 chapter. If at any time the board finds that expenditures from a hope account are not 26 in accordance with the requirements of this subsection or rules adopted under this 27 chapter, the board shall notify the parent of the qualified student for whom the hope 28 account is established and if, after an opportunity for hearing, the department 29 determines that there was in fact a misuse of the funds, the board shall close the hope 30 account and transfer all funds in the hope account to the State Controller, who shall 31 transfer those funds to the unappropriated surplus of the General Fund. 32 The board shall adopt rules necessary to implement this chapter. Rules 33 adopted by the board pursuant to this subsection are routine technical rules as defined in 34 Title 5, chapter 375, subchapter 2-A. 35 is enacted to read: 36 37 of the total allocation to a school administrative unit in any year in which one or more hope 38 accounts under section 6997 are established for students within that school administrative 39 unit. The amount of the reduction must equal the total state subsidy that is attributable to 40 all students in that school administrative unit for whom hope accounts have been 41 established, as determined by the department pursuant to section 6997. 1 2 3 4 Page 5 - 132LR0548(01) 1 2 This bill establishes the Hope and Inclusion Scholarship Program administered by the 3 Hope and Inclusion Scholarship Board. The board is directed to establish hope accounts 4 that may be used by the parents or legal guardians of qualified students to pay for the 5 education of those students enrolled in certain private schools and students receiving home 6 instruction. The funding for these hope accounts comes from shifting 90% of the essential 7 programs and services funding that would otherwise be provided by the State and by the 8 school administrative unit for each qualified student into a hope account. The bill specifies 9 which educational expenditures are permitted and provides for review of spending from 10 the accounts. 2 3 4 5 6 7 8 9 10