Mississippi 2025 Regular Session

Mississippi House Bill HB1078 Compare Versions

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1-MISSISSIPPI LEGISLATURE 2025 Regular Session To: Education By: Representative White House Bill 1078 (As Passed the House) AN ACT TO AMEND SECTIONS 37-181-5, 37-181-7, 37-181-9, 37-181-11, 37-181-15 AND 37-181-19, MISSISSIPPI CODE OF 1972, TO REMOVE OVERLY RESTRICTIVE LANGUAGE WHICH REQUIRED THE PARENT OR GUARDIAN OF AN ELIGIBLE STUDENT RECEIVING ESA FUNDS TO CERTIFY TO THE STATE DEPARTMENT OF EDUCATION THAT THE STUDENT HAS BEEN ACCEPTED INTO AN ELIGIBLE SCHOOL QUALIFIED TO PROVIDE SERVICES FOR THE PARTICIPATING STUDENT'S DISABILITY OR SPECIAL EDUCATION NEEDS, OR PROVIDE SERVICES ADDRESSING A PARTICIPATING STUDENT'S IEP; TO REMOVE THE REQUIREMENT THAT AN ELIGIBLE SCHOOL THAT FAILS TO COMPLY WITH THE CERTIFICATION REQUIREMENTS OF ITS ABILITY TO PROVIDE SERVICES FOR THE PARTICIPATING STUDENT'S DISABILITY OR SPECIAL EDUCATION NEEDS, OR PROVIDE SERVICES ADDRESSING A PARTICIPATING STUDENT'S IEP SHALL BE INELIGIBLE TO PARTICIPATE IN THE ESA PROGRAM THE FOLLOWING YEAR; TO REMOVE THE WAITLIST REQUIREMENT FOR STUDENTS ELIGIBLE TO RECEIVE AN EDUCATIONAL SCHOLARSHIP ACCOUNT UNDER THE "EQUAL OPPORTUNITY FOR STUDENTS WITH SPECIAL NEEDS ACT"; TO PROVIDE THAT, SUBJECT TO APPROPRIATION, EACH STUDENT'S ESA SHALL BE FUNDED AT THE STUDENT BASE AMOUNT AS DETERMINED UNDER THE "MISSISSIPPI STUDENT FUNDING FORMULA"; TO RESTRUCTURE THE FREQUENCY BY WHICH REIMBURSEMENT PAYMENTS SHALL BE MADE TO SERVICE PROVIDERS AND PARENTS FROM QUARTERLY TO MONTHLY; TO AUTHORIZE THE DEPARTMENT TO ENTER INTO A CONTRACTUAL AGREEMENT WITH A THIRD-PARTY VENDOR TO ADMINISTER THE ESA PROGRAM; TO CREATE THE "MISSISSIPPI FOSTER CHILD EDUCATION SCHOLARSHIP ACCOUNT PROGRAM ACT" FOR THE PURPOSE OF ESTABLISHING EDUCATION SCHOLARSHIP ACCOUNTS (FESAS) FOR FOSTER PARENTS, GUARDIANS OR RESPONSIBLE AGENCY OFFICIALS OF THE DEPARTMENT OF CHILD PROTECTION SERVICES FOR FOSTER CHILDREN; TO PRESCRIBE THE CRITERIA FOR DETERMINING ELIGIBILITY FOR PARTICIPATION IN THE PROGRAM AND RECEIPT OF PROGRAM FUNDS; TO PROVIDE FOR THE FUNDING OF EACH STUDENT'S FESA; TO STIPULATE THE OBLIGATIONS OF FOSTER PARENTS, LEGAL GUARDIANS, RESPONSIBLE CPS OFFICIALS, STUDENTS AND SCHOOLS TO BECOME AND REMAIN ELIGIBLE FOR PARTICIPATION; TO PRESCRIBE THE DUTIES OF THE DEPARTMENT OF EDUCATION REGARDING THE ADMINISTRATION OF THE FUNDS; TO REQUIRE PEER TO PREPARE A BIENNIAL REPORT ON THE SUFFICIENCY OF FUNDING FOR FESAS AND STUDENT PERFORMANCE AND ASSESSMENT EVALUATION BEGINNING IN 2027 AND EVERY TWO YEARS THEREAFTER; TO PROVIDE FOR THE ADMINISTRATIVE, FINANCIAL AND ACADEMIC ACCOUNTABILITY STANDARDS TO BE ADHERED TO BY PARTICIPATING SCHOOLS; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. Section 37-181-5, Mississippi Code of 1972, is amended as follows: 37-181-5. (1) An eligible student shall qualify to participate in the ESA program if the parent or guardian signs an agreement promising: (a) To provide an organized, appropriate educational program with measurable annual goals to their participating student and to provide an education for the participating student in at least the subjects of reading, grammar, mathematics, social studies and science; (b) To document their participating student's disability at intervals and in a manner required under subsection (8) of this section; (c) Not to enroll their participating student in a public school and to acknowledge as part of the agreement that the eligible school has provided clear notice to the parent or guardian that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the ESA program; (d) Not to file for their participating student a certificate of enrollment indicating participation in a home instruction program under Section 37-13-91, Mississippi Code of 1972; and (e) Not to participate in the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program or the Mississippi Speech-Language Therapy Scholarship for Students with Speech-Language Impairments Program while participating in the ESA program. (2) Parents or guardians shall use the funds deposited in a participating student's ESA for any of the following qualifying expenses, which shall be incurred within the awarded ESA school year, to educate the student using any of the below methods or combination of methods that meet the requirement in subsection (1)(a) of this section: (a) Tuition and/or academic fees at an eligible school; (b) Textbooks related to academic coursework; (c) Payment to a tutor, as defined in Section 37-181-3(h); (d) Payment for purchase of curriculum, including any supplemental materials required by the curriculum; (e) Fees for nationally standardized norm-referenced achievement tests, including alternate assessments; and fees for Advanced Placement examinations or similar courses and any examinations related to college or university admission; (f) Educational services or therapies from a licensed or certified practitioner or provider, including licensed or certified paraprofessionals or educational aides; (g) Tuition and fees related to dual enrollment at a postsecondary institution; (h) Textbooks related to academic coursework at a postsecondary institution; (i) Surety bond payments if required by the department; (j) No more than Fifty Dollars ($50.00) in annual consumable school supplies necessary for educational services and therapies, daily classroom activities, and tutoring; (k) Computer hardware and software and other technological devices if an eligible school, licensed or certified tutor, licensed or certified educational service practitioner or provider, or licensed medical professional verifies in writing that these items are essential for the student to meet annual, measurable educational and academic goals or goals within the scope of the eligible student's IEP. Once a student is no longer participating in the ESA program, computer hardware and software and other technological devices purchased with ESA funds shall be donated to a public school or public library. Qualifying expenses for computer hardware and software include only those expenses incurred within the awarded ESA school year. * * * (3) To qualify to participate in the program, the parent or guardian of an eligible student shall also certify to the department that they have been accepted into an eligible school qualified to provide services for the participating student's disability or special education needs, or provide services addressing a participating student's IEP, as required under this chapter. ( * * *43) Neither a participating student, nor anyone on the student's behalf, may receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products in the ESA program. Any refunds or rebates shall be credited directly to the participating student's ESA. The funds in an ESA may only be used for education-related purposes as defined in this chapter. ( * * *54) (a) Eligible schools, postsecondary institutions and educational service providers that serve participating students shall provide the parent or guardian who submitted the ESA program application with an original itemized receipt, including the service provider's name and address, for all qualifying expenses. The parent or guardian who submitted the ESA application shall provide the original itemized receipt to the department. (b) In lieu of providing the parent or guardian who submitted the ESA program application with an original itemized receipt, the eligible schools, postsecondary institutions and educational service providers may provide to the department an original itemized receipt approved and signed off on by the parent or guardian who submitted the ESA application, including the service provider's name and address, for all qualifying expenses. ( * * *65) Payment for educational services through an ESA shall not preclude parents or guardians from paying for educational services using non-ESA funds. ( * * *76) For purposes of continuity of educational attainment, students who enroll in the ESA program shall remain eligible to receive * * *quarterly monthly ESA payments until the participating student returns to a public school, completes high school, completes the school year in which the student reaches the age of twenty-one (21), or does not have eligibility verified by a parent or guardian as required under subsection (8) of this section, whichever occurs first. ( * * *87) Any funds remaining in a student's Education Scholarship Account upon completion of high school shall be returned to the state's General Fund. ( * * *98) Every three (3) years after initial enrollment in the ESA program, a parent or guardian of a participating student, except a student diagnosed as being a person with a permanent disability, shall document that the student continues to be identified by the school district, a federal or state government agency, or a licensed physician or psychometrist as a child with a disability, as defined by the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)). ( * * *109) An eligible student shall be allowed to return to his home school district at any time after enrolling in the ESA program, in compliance with regulations adopted by the department providing for the least disruptive process for doing so. Upon the participating student's return to his or her home school district, the student's Education Scholarship Account shall be closed and any remaining funds shall be distributed to the student's home school district at the end of the awarded ESA school year. SECTION 2. Section 37-181-7, Mississippi Code of 1972, is amended as follows: 37-181-7. (1) New enrollment in the ESA program created in this chapter shall be * * *limited to five hundred (500) additional students each year available to all eligible students, as defined in Section 37-181-3. Subject to appropriation from the General Fund, each student's ESA shall be funded at * * *Six Thousand Five Hundred Dollars ($6,500.00) for school year 2015‑2016. For each subsequent year, this amount the student base amount as determined under Section 37-151-203 for the 2025-2026 school year, and shall increase or decrease by the same proportion as the student base amount under Section 37-151-203 is increased or decreased for each subsequent year. (2) Subject to appropriation, eligible students shall be approved for participation in the ESA program as follows: (a) Students shall be approved on a first-come, first-served basis, with applications being reviewed on a rolling basis; and * * *(b) After participation reaches fifty percent (50%) of the annual enrollment limits in subsection (1) of this section, the department shall set annual application deadlines for the remaining number of available ESAs and begin to maintain a waiting list of eligible students. The waitlist shall only include eligible students who have certified to the department that they have been accepted into an eligible school qualified to provide services for the participating student's disability or special education needs, or provide services addressing a participating student's IEP. The waitlist will be maintained in the chronological order in which applications are received. The department shall award ESA program applications in chronological order according to the waitlist; and ( * * *cb) Participating students who remain eligible for the ESA program are automatically approved for participation for the following year * * * and are not subject to the random selection process. (3) No funds for an ESA may be expended from the total funding formula funds provided in this chapter, nor shall any school district be required to provide funding for an ESA. SECTION 3. Section 37-181-9, Mississippi Code of 1972, is amended as follows: 37-181-9. (1) The department shall create a standard form that parents or guardians of students submit to establish their student's eligibility for an Education Scholarship Account. The department shall ensure that the application is readily available to interested families through various sources, including the department's website and the copy of procedural safeguards annually given to parents or guardians. * * *To be considered, an application must include certification that the student has been accepted into an eligible school qualified to provide services for the student's disability or special education needs, or provide services addressing a participating student's IEP. (2) The department shall provide parents or guardians of participating students with a written explanation of the allowable uses of Education Scholarship Accounts, the responsibilities of parents and the duties of the department. This information shall also be made available on the department's website. (3) The department shall annually notify all students with an IEP of the existence of the ESA program and shall ensure that lower-income families are made aware of their potential eligibility. (4) The department may deduct an amount up to a limit of six percent (6%) from appropriations used to fund Education Scholarship Accounts to cover the costs of overseeing the funds and administering the ESA program, which such funds may also be used to cover the cost assessed by a third-party vendor with whom the department has entered a contractual agreement to administer the program and ensure compliance with state regulations. (5) (a) The department shall make a determination of eligibility, and shall approve the application, within twenty-one (21) business days of receiving an application for participation in the ESA program, subject to the provisions of Section 37-181-3(b). (b) The department shall provide for a procedure that children with a ruling of hearing impairment or children suspected of a hearing loss shall receive a comprehensive educational assessment which may include the areas of cognitive development, language/speech, audiological and academic achievement from the state-funded Mississippi Assistance Center for Hearing Loss. Children with a ruling of visual impairment or children suspected of a visual impairment shall receive a comprehensive low vision evaluation from the state-funded Low Vision Clinic. (6) The home school district shall provide the parent or guardian of a participating student with a complete copy of the student's school records, while complying with the Family Educational Rights and Privacy Act of 1974 (20 USCS Section 1232(g)). The record shall be provided no later than thirty (30) days after a parent signs an agreement to participate in the ESA program. SECTION 4. Section 37-181-11, Mississippi Code of 1972, is amended as follows: 37-181-11. (1) To ensure that funds are spent appropriately, the State Department of Education shall adopt rules and policies necessary for the administration of the ESA program, including the auditing of Education Scholarship Accounts, and shall conduct or contract for random audits throughout the year. (2) (a) The department shall develop a system for payment of benefits, including, but not limited to, allowing educational service providers to invoice the department for qualified expenses consistent with Section 37-181-5(2), or allowing the parent or guardian who submitted the ESA program application to seek reimbursement for qualified expenses consistent with Section 37-181-5(2). (b) The department may make payments to educational service providers or reimbursement to the parent or guardian who submitted the ESA program application via check or warrant or electronic funds transfer or any other means of payment deemed to be commercially viable or cost-effective. (c) The department may also establish by rule that some payments to educational service providers will be made on a * * *quarterly monthly basis, rather than an annual basis, if the educational services will be rendered over an extended period of time. (3) The department shall adopt a process for removing educational service providers that defraud parents and for referring cases of fraud to law enforcement. (4) The department shall establish or contract for the establishment of an online anonymous fraud reporting service. (5) The department shall establish or contract for the establishment of an anonymous telephone hotline for fraud reporting. SECTION 5. Section 37-181-15, Mississippi Code of 1972, is amended as follows: 37-181-15. * * *(1) To ensure that students are treated fairly and kept safe, all eligible schools shall: (a) Comply with the nondiscrimination policies set forth in 42 USCS 1981; (b) Prior to a participating student's application for enrollment, provide parents or guardians with details of the school's programs, record of student achievement, qualifications, experience, capacities to serve students with special needs, and capacity to serve the participating student within the scope of their IEP; (c) Comply with all health and safety laws or codes that apply to nonpublic schools; (d) Hold a valid occupancy permit if required by their municipality; (e) Have no public record of fraud or malfeasance; (f) Require participating students to take a pre-assessment at the beginning of the school year and a post-assessment at the end of the school year. The eligible school shall have the option to select their current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener; (g) Notify a parent or guardian applying for the ESA program that the parent or guardian waives the right of the participating student to an individual entitlement to a free and appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the ESA program; (h) Conduct criminal background checks on employees and: (i) Exclude from employment any person not permitted by state law to work in a nonpublic school; and (ii) Exclude from employment any person who might reasonably pose a threat to the safety of students; and (i) An eligible school shall certify to the department upon enrollment of a participating student that the eligible school shall provide services for the participating student's disability or special education needs, or shall provide services addressing a participating student's IEP. Such certification must be received by the department before the ESA is reimbursed to an eligible student. * * * (2) Failure to comply with these requirements shall deem the eligible school ineligible to participate in the ESA program the following year. SECTION 6. Section 37-181-19, Mississippi Code of 1972, is amended as follows: 37-181-19. (1) The State Department of Education may receive and expend contributions from any public or private source to fund ESAs for participating students. (2) The department may enter into a contractual agreement with a third-party vendor to administer the ESA program and ensure compliance with state regulations. SECTION 7. Sections 9 through 19 of this act shall be known and may be cited as the "Mississippi Foster Child Education Scholarship Account Program Act." SECTION 8. As used in Sections 9 through 19 of this act the following terms shall have the meanings ascribed herein, unless context of use clearly requires otherwise: (a) "FESA program" means the Foster Child Education Scholarship Account (FESA) program created in this chapter. (b) "Eligible student" means a child who: (i) Is in the custody of Department of Child Protection Services as a foster child or ward of the state; and (ii) Has been in temporary placement exceeding six (6) consecutive months; and (iii) Is not concurrently enrolled in a public school or receiving funding through another state or federal educational assistance program. (c) "Qualified expenses" include, but are not limited to: (i) Tuition and fees at an eligible school, as defined in this section; (ii) Textbooks, digital books, or other instructional materials required for coursework; (iii) Tutoring services provided by a certified teacher or licensed provider; (iv) Curriculum purchases, including supplemental and enrichment materials; (v) Fees for standardized testing, advanced placement examinations, or college entrance exams; (vi) Educational services or therapies from licensed or certified providers, including speech therapy, occupational therapy, and mental health counseling; (vii) Technology expenses, including computers, tablets, or software, deemed essential by the Department of Child Protection Services or an educational provider; (viii) Dual enrollment or college credit fees and related textbooks or materials; (ix) Costs associated with extracurricular or educational enrichment activities, such as music lessons, art classes, or STEM programs, as preapproved by Department of Child Protection Services. (d) "Eligible school" means a state-accredited special purpose school, a state-accredited nonpublic school, or a nonpublic school located in the state that has enrolled a participating student and is providing educational instruction and services to the participating student. An eligible school does not include a home instruction program under Section 371391, Mississippi Code of 1972. (e) "Educational service provider" means an eligible school, tutor, or other person or organization that provides education-related services and products to participating students. (f) "Awarded FESA school year" means the duration of the school year in which FESA program funds are deposited in a student's FESA. (g) "Responsible agency official" means an employee of the Mississippi Department of Child Protection Services who has been assigned as caseload manager, case worker, counselor or social worker for a child in the department's custody who has not received a permanent placement since becoming a ward of the state. (h) An eligible school shall provide notice to a participating student's home school district when the eligible student enrolls in the eligible school with an FESA. SECTION 9. (1) An eligible student shall qualify to participate in the FESA program if the foster parent, legal guardian or responsible agency official signs an agreement promising: (a) To provide an organized, appropriate educational program with measurable annual goals to their participating student and to provide an education for the participating student in at least the subjects of reading, grammar, mathematics, social studies and science; (b) To document their participating student's disability at intervals and in a manner required under subsection (8) of this section; (c) Not to enroll their participating student in a public school and to acknowledge as part of the agreement that the eligible school has provided clear notice to the parent or guardian that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the FESA program; and (d) Not to file for their participating student a certificate of enrollment indicating participation in a home instruction program under Section 371391, Mississippi Code of 1972. (2) Parents, legal guardians or responsible agency officials shall use the funds deposited in a participating student's FESA for any of the qualified expenses defined in Section 8(c) of this act, which shall be incurred within the awarded FESA school year, to educate the student. (3) Neither a participating student, nor anyone on the student's behalf, may receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products in the FESA program. Any refunds or rebates shall be credited directly to the participating student's FESA. The funds in an FESA may only be used for education-related purposes. (4) (a) Eligible schools and educational service providers that serve participating students shall provide the foster parent, legal guardian or responsible agency official who submitted the FESA program application with an original itemized receipt, including the service provider's name and address, for all qualifying expenses. The foster parent, legal guardian or responsible agency official who submitted the FESA application shall provide the original itemized receipt to the Department of Child Protection Services. (b) In lieu of providing the foster parent, legal guardian or responsible agency official who submitted the FESA program application with an original itemized receipt, the eligible schools and educational service providers may provide to the Department of Child Protection Services an original itemized receipt approved and signed off on by the foster parent, legal guardian or responsible agency official who submitted the FESA application, including the service provider's name and address, for all qualifying expenses. (5) Payment for educational services through a FESA shall not preclude foster parents, legal guardians or responsible agency officials from paying for educational services using non-FESA funds. (6) For purposes of continuity of educational attainment, students who enroll in the FESA program shall remain eligible to receive quarterly FESA payments until the participating student returns to a public school, completes high school, or completes the school year in which the student reaches the age of twenty-one (21) if he or she is eligible for special education for individuals with disabilities under the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)), whichever occurs first as applicable. (7) Any funds remaining in a student's Foster Child Education Scholarship Account upon completion of high school shall be deposited into the Kinkade Fostering Access and Inspiring True Hope (FAITH) Scholarship Program Fund. (8) An eligible student shall be allowed to return to his home school district after enrolling in the FESA program, in compliance with regulations adopted by the Department of Child Protection Services which provide for the least disruptive process for doing so. Upon the participating student's return to his or her home school district, the student's Foster Education Scholarship Account shall be placed on temporary hold and quarterly payment to the FESA shall be withheld for such time as until verification is provided that the student has resumed enrollment in an eligible school or completed high school. Any remaining funds in the student's FESA shall remain inviolate during the temporary holding period. However, upon completion of high school, any funds remaining in the FESA shall be deposited in accordance with subsection (7). (9) A student's eligibility to participate in the Foster Child Education Scholarship Account Program, does not disqualify the student's ability to simultaneously participate in either the Equal Opportunity for Students with Special Needs FESA program, the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program or the Mississippi SpeechLanguage Therapy Scholarship for Students with SpeechLanguage Impairments Program. SECTION 10. (1) The Department of Child Protection Services shall manage and oversee FESA funds on behalf of each eligible child. The Department of Child Protection Services shall provide foster parents, legal guardians or responsible agency officials with guidance on eligible uses of funds and required documentation. (2) (a) Foster parents, legal guardians or responsible agency officials shall submit receipts or invoices for qualified expenses to Department of Child Protection Services within thirty (30) days of incurring such expenses. (b) The Department of Child Protection Services shall verify the expenses and submit reimbursement requests to the State Department of Education, which shall reimburse the Department of Child Protection Services for qualified expenses within twenty-one (21) business days of receipt of documentation. (c) Within ten (10) business days of receiving reimbursement, the Department of Child Protection Services shall disburse funds to the foster parent or legal guardian, or to responsible agency official for deposit into the appropriate expense or operating fund of the department. (3) (a) Educational service providers may directly invoice the Department of Child Protection Services for services rendered, subject to verification and approval. (b) The Department of Child Protection Services shall ensure all payments are consistent with qualified expense guidelines. (4) No funds for a FESA may be expended from the total funding formula funds provided in this act, nor shall any school district be required to provide funding for a FESA. SECTION 11. (1) Department of Child Protection Services shall notify foster parents, legal guardians and responsible agency officials of the availability of FESA funds upon a child entering the department's custody. (2) Students participating in the FESA program remain eligible until: (a) They return to public school; (b) They complete the school year in which the student reaches the age of twenty-one (21) if he or she is eligible for special education for individuals with disabilities under the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)); or (c) Their eligibility is revoked due to misuse of funds or noncompliance with program rules. SECTION 12. (1) Subject to appropriation from the General Fund, each student's FESA shall be funded annually at the base student amount as determined under Section 37-151-203 of the Mississippi Student Funding Formula. For each subsequent year, the funded amount shall increase or decrease by the same proportion as the student base amount under Section 37151203 is increased or decreased. (2) No funds for a FESA may be expended from the Mississippi Student Funding Formula, nor shall any school district be required to provide funding for a FESA. SECTION 13. (1) The Department of Child Protection Services in conjunction with the State Department of Education shall develop policies and procedures for the administration of the FESA program to ensure the appropriate use and expenditure of FESA funds, including the accurate and timely submission of reimbursement requests, and required maintenance of detailed records for each eligible student. (2) The State Department of Education shall: (a) Conduct annual audits of the Department of Child Protection Services-managed FESAs to ensure compliance; (b) Establish a process for random audits of individual FESA accounts and service providers; (c) Provide the Department of Child Protection Services with technical assistance and training on program administration. (3) To ensure fraud prevention, the State Department of Education shall: (a) Adopt a process for removing educational service providers that defraud parents and for referring cases of fraud to law enforcement; (b) Establish or contract for the establishment of an online anonymous fraud reporting service; and (c) Establish or contract for the establishment of an anonymous telephone hotline for fraud reporting. SECTION 14. (1) Department of Child Protection Services shall submit an annual report to the Legislature and the State Department of Education detailing: (a) The number of students participating in the FESA program; (b) Total funds disbursed and remaining balances; (c) A summary of the program's impact on foster children's educational outcomes. (2) The State Department of Education shall provide an annual audit report to the Legislature, including findings and recommendations for program improvement. SECTION 15. (1) The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) shall prepare a biennial report, beginning in 2027 and every two (2) years thereafter, assessing efficacy of Foster Child Education Scholarship Accounts, to include the sufficiency of funding, and recommending any suggested changes in state law or policy necessary to improve the FESA program. (2) The report shall assess: (a) The level of participating students' satisfaction with the FESA program; (b) The level of parental or guardian satisfaction with the FESA program; (c) Participating students' performance, both pre-assessment and post-assessment, on the eligible school's current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener, as required in Section 16(f) of this act; (d) Participating students' performance on Advanced Placement examinations or similar courses and any examinations related to college or university admission; provided that eligible schools must report participating students' performance on Advance Placement examinations and any examinations related to college or university admission; (e) The four-year high school graduation rates and college acceptance rates of participating students; provided that eligible schools must report participating students' high school graduation rates and, if known, college acceptance rates; (f) The percentage of funds used for each qualifying expense identified in Section 8(c) of this act; and (g) The fiscal impact to the state and home school districts of the FESA program, which must consider both the impact on revenue and the impact on expenses. Furthermore, the fiscal savings associated with students departing public schools must be explicitly quantified, even if the public school losing the student(s) does not reduce its spending accordingly. (3) The report shall: (a) Apply appropriate analytical and behavioral science methodologies to ensure public confidence in the study; and (b) Protect the identity of participating students and schools by, among other things, keeping anonymous all disaggregated data. (4) PEER shall provide the Legislature with a final copy of the report of the FESA program before December 31 each year the report is due. At the same time, the study shall also be placed in a prominent location on the PEER website. (5) PEER must make its data and methodology available for public review while complying with the requirements of the Family Educational Rights and Privacy Act (20 USCS Section 1232(g)). SECTION 16. To ensure that students are treated fairly and kept safe, all eligible schools shall: (a) Comply with the nondiscrimination policies set forth in 42 USCS 1981; (b) Prior to a participating student's application for enrollment, provide foster parents or legal guardians with details of the school's programs, record of student achievement, experience qualifications, capacities to serve participating student within the scope of their educational needs; (c) Comply with all health and safety laws or codes that apply to nonpublic schools; (d) Hold a valid occupancy permit if required by their municipality; (e) Have no public record of fraud or malfeasance; (f) Require participating students to take a pre-assessment at the beginning of the school year and a post-assessment at the end of the school year. The eligible school shall have the option to select their current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener; (g) Notify a foster parent, legal guardian or responsible agency official applying for the FESA program that the foster parent, legal guardian or responsible agency official waives the right of the participating student to an individual entitlement to a free and appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the FESA program; and (h) Conduct criminal background checks on employees and: (i) Exclude from employment any person not permitted by state law to work in a nonpublic school; and (ii) Exclude from employment any person who might reasonably pose a threat to the safety of students. SECTION 17. (1) An eligible nonpublic school is autonomous and not an agent of the state or federal government and therefore: (a) The State Department of Education or any other government agency shall not regulate the educational program of a nonpublic school or educational service provider that accepts funds from the foster parent, legal guardian or responsible agency official of a participating student beyond the requirements of the FESA program as promulgated in this chapter; (b) The creation of the Foster Child Education Scholarship Account program does not expand the regulatory authority of the state, its officers, or any school district to impose any additional regulation of nonpublic schools or educational service providers beyond those necessary to enforce the requirements of the FESA program; and (c) Eligible schools and educational service providers shall be given the maximum freedom to provide for the educational needs of their students without governmental control. No eligible school or educational service provider shall be required to alter its creed, practices, admission policies or curriculum in order to accept participating students. (2) Eligible schools, or the foster parent, legal guardian or responsible agency official who submitted the FESA application, must submit student performance data to the State Department of Education at the end of the school year, including the individual results of the pre-assessment and post-assessment required in Section 16(f) of this act. The department shall develop a uniformed reporting format for eligible schools to use when submitting assessment results. (3) In any legal proceeding challenging the application of this chapter to an eligible school or educational service provider, the state bears the burden of establishing that the law is necessary and does not impose any undue burden on the eligible school or educational service provider. SECTION 18. This act shall take effect and be in force from and after July 1, 2025.
1+MISSISSIPPI LEGISLATURE 2025 Regular Session To: Education By: Representative White House Bill 1078 AN ACT TO AMEND SECTIONS 37-181-5, 37-181-7, 37-181-9, 37-181-11, 37-181-15 AND 37-181-19, MISSISSIPPI CODE OF 1972, TO REMOVE OVERLY RESTRICTIVE LANGUAGE WHICH REQUIRED THE PARENT OR GUARDIAN OF AN ELIGIBLE STUDENT RECEIVING ESA FUNDS TO CERTIFY TO THE STATE DEPARTMENT OF EDUCATION THAT THE STUDENT HAS BEEN ACCEPTED INTO AN ELIGIBLE SCHOOL QUALIFIED TO PROVIDE SERVICES FOR THE PARTICIPATING STUDENT'S DISABILITY OR SPECIAL EDUCATION NEEDS, OR PROVIDE SERVICES ADDRESSING A PARTICIPATING STUDENT'S IEP; TO REMOVE THE REQUIREMENT THAT AN ELIGIBLE SCHOOL THAT FAILS TO COMPLY WITH THE CERTIFICATION REQUIREMENTS OF ITS ABILITY TO PROVIDE SERVICES FOR THE PARTICIPATING STUDENT'S DISABILITY OR SPECIAL EDUCATION NEEDS, OR PROVIDE SERVICES ADDRESSING A PARTICIPATING STUDENT'S IEP SHALL BE INELIGIBLE TO PARTICIPATE IN THE ESA PROGRAM THE FOLLOWING YEAR; TO REMOVE THE WAITLIST REQUIREMENT FOR STUDENTS ELIGIBLE TO RECEIVE AN EDUCATIONAL SCHOLARSHIP ACCOUNT UNDER THE "EQUAL OPPORTUNITY FOR STUDENTS WITH SPECIAL NEEDS ACT"; TO PROVIDE THAT, SUBJECT TO APPROPRIATION, EACH STUDENT'S ESA SHALL BE FUNDED AT THE STUDENT BASE AMOUNT AS DETERMINED UNDER THE "MISSISSIPPI STUDENT FUNDING FORMULA"; TO RESTRUCTURE THE FREQUENCY BY WHICH REIMBURSEMENT PAYMENTS SHALL BE MADE TO SERVICE PROVIDERS AND PARENTS FROM QUARTERLY TO MONTHLY; TO AUTHORIZE THE DEPARTMENT TO ENTER INTO A CONTRACTUAL AGREEMENT WITH A THIRD-PARTY VENDOR TO ADMINISTER THE ESA PROGRAM; TO CREATE THE "MISSISSIPPI FOSTER CHILD EDUCATION SCHOLARSHIP ACCOUNT PROGRAM ACT" FOR THE PURPOSE OF ESTABLISHING EDUCATION SCHOLARSHIP ACCOUNTS (FESAS) FOR FOSTER PARENTS, GUARDIANS OR RESPONSIBLE AGENCY OFFICIALS OF THE DEPARTMENT OF CHILD PROTECTION SERVICES FOR FOSTER CHILDREN; TO PRESCRIBE THE CRITERIA FOR DETERMINING ELIGIBILITY FOR PARTICIPATION IN THE PROGRAM AND RECEIPT OF PROGRAM FUNDS; TO PROVIDE FOR THE FUNDING OF EACH STUDENT'S FESA; TO STIPULATE THE OBLIGATIONS OF FOSTER PARENTS, LEGAL GUARDIANS, RESPONSIBLE CPS OFFICIALS, STUDENTS AND SCHOOLS TO BECOME AND REMAIN ELIGIBLE FOR PARTICIPATION; TO PRESCRIBE THE DUTIES OF THE DEPARTMENT OF EDUCATION REGARDING THE ADMINISTRATION OF THE FUNDS; TO REQUIRE PEER TO PREPARE A BIENNIAL REPORT ON THE SUFFICIENCY OF FUNDING FOR FESAS AND STUDENT PERFORMANCE AND ASSESSMENT EVALUATION BEGINNING IN 2027 AND EVERY TWO YEARS THEREAFTER; TO PROVIDE FOR THE ADMINISTRATIVE, FINANCIAL AND ACADEMIC ACCOUNTABILITY STANDARDS TO BE ADHERED TO BY PARTICIPATING SCHOOLS; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. Section 37-181-5, Mississippi Code of 1972, is amended as follows: 37-181-5. (1) An eligible student shall qualify to participate in the ESA program if the parent or guardian signs an agreement promising: (a) To provide an organized, appropriate educational program with measurable annual goals to their participating student and to provide an education for the participating student in at least the subjects of reading, grammar, mathematics, social studies and science; (b) To document their participating student's disability at intervals and in a manner required under subsection (8) of this section; (c) Not to enroll their participating student in a public school and to acknowledge as part of the agreement that the eligible school has provided clear notice to the parent or guardian that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the ESA program; (d) Not to file for their participating student a certificate of enrollment indicating participation in a home instruction program under Section 37-13-91, Mississippi Code of 1972; and (e) Not to participate in the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program or the Mississippi Speech-Language Therapy Scholarship for Students with Speech-Language Impairments Program while participating in the ESA program. (2) Parents or guardians shall use the funds deposited in a participating student's ESA for any of the following qualifying expenses, which shall be incurred within the awarded ESA school year, to educate the student using any of the below methods or combination of methods that meet the requirement in subsection (1)(a) of this section: (a) Tuition and/or academic fees at an eligible school; (b) Textbooks related to academic coursework; (c) Payment to a tutor, as defined in Section 37-181-3(h); (d) Payment for purchase of curriculum, including any supplemental materials required by the curriculum; (e) Fees for nationally standardized norm-referenced achievement tests, including alternate assessments; and fees for Advanced Placement examinations or similar courses and any examinations related to college or university admission; (f) Educational services or therapies from a licensed or certified practitioner or provider, including licensed or certified paraprofessionals or educational aides; (g) Tuition and fees related to dual enrollment at a postsecondary institution; (h) Textbooks related to academic coursework at a postsecondary institution; (i) Surety bond payments if required by the department; (j) No more than Fifty Dollars ($50.00) in annual consumable school supplies necessary for educational services and therapies, daily classroom activities, and tutoring; (k) Computer hardware and software and other technological devices if an eligible school, licensed or certified tutor, licensed or certified educational service practitioner or provider, or licensed medical professional verifies in writing that these items are essential for the student to meet annual, measurable educational and academic goals or goals within the scope of the eligible student's IEP. Once a student is no longer participating in the ESA program, computer hardware and software and other technological devices purchased with ESA funds shall be donated to a public school or public library. Qualifying expenses for computer hardware and software include only those expenses incurred within the awarded ESA school year. * * * (3) To qualify to participate in the program, the parent or guardian of an eligible student shall also certify to the department that they have been accepted into an eligible school qualified to provide services for the participating student's disability or special education needs, or provide services addressing a participating student's IEP, as required under this chapter. ( * * *43) Neither a participating student, nor anyone on the student's behalf, may receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products in the ESA program. Any refunds or rebates shall be credited directly to the participating student's ESA. The funds in an ESA may only be used for education-related purposes as defined in this chapter. ( * * *54) (a) Eligible schools, postsecondary institutions and educational service providers that serve participating students shall provide the parent or guardian who submitted the ESA program application with an original itemized receipt, including the service provider's name and address, for all qualifying expenses. The parent or guardian who submitted the ESA application shall provide the original itemized receipt to the department. (b) In lieu of providing the parent or guardian who submitted the ESA program application with an original itemized receipt, the eligible schools, postsecondary institutions and educational service providers may provide to the department an original itemized receipt approved and signed off on by the parent or guardian who submitted the ESA application, including the service provider's name and address, for all qualifying expenses. ( * * *65) Payment for educational services through an ESA shall not preclude parents or guardians from paying for educational services using non-ESA funds. ( * * *76) For purposes of continuity of educational attainment, students who enroll in the ESA program shall remain eligible to receive * * *quarterly monthly ESA payments until the participating student returns to a public school, completes high school, completes the school year in which the student reaches the age of twenty-one (21), or does not have eligibility verified by a parent or guardian as required under subsection (8) of this section, whichever occurs first. ( * * *87) Any funds remaining in a student's Education Scholarship Account upon completion of high school shall be returned to the state's General Fund. ( * * *98) Every three (3) years after initial enrollment in the ESA program, a parent or guardian of a participating student, except a student diagnosed as being a person with a permanent disability, shall document that the student continues to be identified by the school district, a federal or state government agency, or a licensed physician or psychometrist as a child with a disability, as defined by the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)). ( * * *109) An eligible student shall be allowed to return to his home school district at any time after enrolling in the ESA program, in compliance with regulations adopted by the department providing for the least disruptive process for doing so. Upon the participating student's return to his or her home school district, the student's Education Scholarship Account shall be closed and any remaining funds shall be distributed to the student's home school district at the end of the awarded ESA school year. SECTION 2. Section 37-181-7, Mississippi Code of 1972, is amended as follows: 37-181-7. (1) New enrollment in the ESA program created in this chapter shall be * * *limited to five hundred (500) additional students each year available to all eligible students, as defined in Section 37-181-3. Subject to appropriation from the General Fund, each student's ESA shall be funded at * * *Six Thousand Five Hundred Dollars ($6,500.00) for school year 2015‑2016. For each subsequent year, this amount the student base amount as determined under Section 37-151-203 for the 2025-2026 school year, and shall increase or decrease by the same proportion as the student base amount under Section 37-151-203 is increased or decreased for each subsequent year. (2) Subject to appropriation, eligible students shall be approved for participation in the ESA program as follows: (a) Students shall be approved on a first-come, first-served basis, with applications being reviewed on a rolling basis; and * * *(b) After participation reaches fifty percent (50%) of the annual enrollment limits in subsection (1) of this section, the department shall set annual application deadlines for the remaining number of available ESAs and begin to maintain a waiting list of eligible students. The waitlist shall only include eligible students who have certified to the department that they have been accepted into an eligible school qualified to provide services for the participating student's disability or special education needs, or provide services addressing a participating student's IEP. The waitlist will be maintained in the chronological order in which applications are received. The department shall award ESA program applications in chronological order according to the waitlist; and ( * * *cb) Participating students who remain eligible for the ESA program are automatically approved for participation for the following year * * * and are not subject to the random selection process. (3) No funds for an ESA may be expended from the total funding formula funds provided in this chapter, nor shall any school district be required to provide funding for an ESA. SECTION 3. Section 37-181-9, Mississippi Code of 1972, is amended as follows: 37-181-9. (1) The department shall create a standard form that parents or guardians of students submit to establish their student's eligibility for an Education Scholarship Account. The department shall ensure that the application is readily available to interested families through various sources, including the department's website and the copy of procedural safeguards annually given to parents or guardians. * * *To be considered, an application must include certification that the student has been accepted into an eligible school qualified to provide services for the student's disability or special education needs, or provide services addressing a participating student's IEP. (2) The department shall provide parents or guardians of participating students with a written explanation of the allowable uses of Education Scholarship Accounts, the responsibilities of parents and the duties of the department. This information shall also be made available on the department's website. (3) The department shall annually notify all students with an IEP of the existence of the ESA program and shall ensure that lower-income families are made aware of their potential eligibility. (4) The department may deduct an amount up to a limit of six percent (6%) from appropriations used to fund Education Scholarship Accounts to cover the costs of overseeing the funds and administering the ESA program, which such funds may also be used to cover the cost assessed by a third-party vendor with whom the department has entered a contractual agreement to administer the program and ensure compliance with state regulations. (5) (a) The department shall make a determination of eligibility, and shall approve the application, within twenty-one (21) business days of receiving an application for participation in the ESA program, subject to the provisions of Section 37-181-3(b). (b) The department shall provide for a procedure that children with a ruling of hearing impairment or children suspected of a hearing loss shall receive a comprehensive educational assessment which may include the areas of cognitive development, language/speech, audiological and academic achievement from the state-funded Mississippi Assistance Center for Hearing Loss. Children with a ruling of visual impairment or children suspected of a visual impairment shall receive a comprehensive low vision evaluation from the state-funded Low Vision Clinic. (6) The home school district shall provide the parent or guardian of a participating student with a complete copy of the student's school records, while complying with the Family Educational Rights and Privacy Act of 1974 (20 USCS Section 1232(g)). The record shall be provided no later than thirty (30) days after a parent signs an agreement to participate in the ESA program. SECTION 4. Section 37-181-11, Mississippi Code of 1972, is amended as follows: 37-181-11. (1) To ensure that funds are spent appropriately, the State Department of Education shall adopt rules and policies necessary for the administration of the ESA program, including the auditing of Education Scholarship Accounts, and shall conduct or contract for random audits throughout the year. (2) (a) The department shall develop a system for payment of benefits, including, but not limited to, allowing educational service providers to invoice the department for qualified expenses consistent with Section 37-181-5(2), or allowing the parent or guardian who submitted the ESA program application to seek reimbursement for qualified expenses consistent with Section 37-181-5(2). (b) The department may make payments to educational service providers or reimbursement to the parent or guardian who submitted the ESA program application via check or warrant or electronic funds transfer or any other means of payment deemed to be commercially viable or cost-effective. (c) The department may also establish by rule that some payments to educational service providers will be made on a * * *quarterly monthly basis, rather than an annual basis, if the educational services will be rendered over an extended period of time. (3) The department shall adopt a process for removing educational service providers that defraud parents and for referring cases of fraud to law enforcement. (4) The department shall establish or contract for the establishment of an online anonymous fraud reporting service. (5) The department shall establish or contract for the establishment of an anonymous telephone hotline for fraud reporting. SECTION 5. Section 37-181-15, Mississippi Code of 1972, is amended as follows: 37-181-15. * * *(1) To ensure that students are treated fairly and kept safe, all eligible schools shall: (a) Comply with the nondiscrimination policies set forth in 42 USCS 1981; (b) Prior to a participating student's application for enrollment, provide parents or guardians with details of the school's programs, record of student achievement, qualifications, experience, capacities to serve students with special needs, and capacity to serve the participating student within the scope of their IEP; (c) Comply with all health and safety laws or codes that apply to nonpublic schools; (d) Hold a valid occupancy permit if required by their municipality; (e) Have no public record of fraud or malfeasance; (f) Require participating students to take a pre-assessment at the beginning of the school year and a post-assessment at the end of the school year. The eligible school shall have the option to select their current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener; (g) Notify a parent or guardian applying for the ESA program that the parent or guardian waives the right of the participating student to an individual entitlement to a free and appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the ESA program; (h) Conduct criminal background checks on employees and: (i) Exclude from employment any person not permitted by state law to work in a nonpublic school; and (ii) Exclude from employment any person who might reasonably pose a threat to the safety of students; and (i) An eligible school shall certify to the department upon enrollment of a participating student that the eligible school shall provide services for the participating student's disability or special education needs, or shall provide services addressing a participating student's IEP. Such certification must be received by the department before the ESA is reimbursed to an eligible student. * * * (2) Failure to comply with these requirements shall deem the eligible school ineligible to participate in the ESA program the following year. SECTION 6. Section 37-181-19, Mississippi Code of 1972, is amended as follows: 37-181-19. (1) The State Department of Education may receive and expend contributions from any public or private source to fund ESAs for participating students. (2) The department may enter into a contractual agreement with a third-party vendor to administer the ESA program and ensure compliance with state regulations. SECTION 7. Sections 9 through 19 of this act shall be known and may be cited as the "Mississippi Foster Child Education Scholarship Account Program Act." SECTION 8. As used in Sections 9 through 19 of this act the following terms shall have the meanings ascribed herein, unless context of use clearly requires otherwise: (a) "FESA program" means the Foster Child Education Scholarship Account (FESA) program created in this chapter. (b) "Eligible student" means a child who: (i) Is in the custody of Department of Child Protection Services as a foster child or ward of the state; and (ii) Has been in temporary placement exceeding six (6) consecutive months; and (iii) Is not concurrently enrolled in a public school or receiving funding through another state or federal educational assistance program. (c) "Qualified expenses" include, but are not limited to: (i) Tuition and fees at an eligible school, as defined in this section; (ii) Textbooks, digital books, or other instructional materials required for coursework; (iii) Tutoring services provided by a certified teacher or licensed provider; (iv) Curriculum purchases, including supplemental and enrichment materials; (v) Fees for standardized testing, advanced placement examinations, or college entrance exams; (vi) Educational services or therapies from licensed or certified providers, including speech therapy, occupational therapy, and mental health counseling; (vii) Technology expenses, including computers, tablets, or software, deemed essential by the Department of Child Protection Services or an educational provider; (viii) Dual enrollment or college credit fees and related textbooks or materials; (ix) Costs associated with extracurricular or educational enrichment activities, such as music lessons, art classes, or STEM programs, as preapproved by Department of Child Protection Services. (d) "Eligible school" means a state-accredited special purpose school, a state-accredited nonpublic school, or a nonpublic school located in the state that has enrolled a participating student and is providing educational instruction and services to the participating student. An eligible school does not include a home instruction program under Section 371391, Mississippi Code of 1972. (e) "Educational service provider" means an eligible school, tutor, or other person or organization that provides education-related services and products to participating students. (f) "Awarded FESA school year" means the duration of the school year in which FESA program funds are deposited in a student's FESA. (g) "Responsible agency official" means an employee of the Mississippi Department of Child Protection Services who has been assigned as caseload manager, case worker, counselor or social worker for a child in the department's custody who has not received a permanent placement since becoming a ward of the state. (h) An eligible school shall provide notice to a participating student's home school district when the eligible student enrolls in the eligible school with an FESA. SECTION 9. (1) An eligible student shall qualify to participate in the FESA program if the foster parent, legal guardian or responsible agency official signs an agreement promising: (a) To provide an organized, appropriate educational program with measurable annual goals to their participating student and to provide an education for the participating student in at least the subjects of reading, grammar, mathematics, social studies and science; (b) To document their participating student's disability at intervals and in a manner required under subsection (8) of this section; (c) Not to enroll their participating student in a public school and to acknowledge as part of the agreement that the eligible school has provided clear notice to the parent or guardian that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the FESA program; and (d) Not to file for their participating student a certificate of enrollment indicating participation in a home instruction program under Section 371391, Mississippi Code of 1972. (2) Parents, legal guardians or responsible agency officials shall use the funds deposited in a participating student's FESA for any of the qualified expenses defined in Section 8(c) of this act, which shall be incurred within the awarded FESA school year, to educate the student. (3) Neither a participating student, nor anyone on the student's behalf, may receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products in the FESA program. Any refunds or rebates shall be credited directly to the participating student's FESA. The funds in an FESA may only be used for education-related purposes. (4) (a) Eligible schools and educational service providers that serve participating students shall provide the foster parent, legal guardian or responsible agency official who submitted the FESA program application with an original itemized receipt, including the service provider's name and address, for all qualifying expenses. The foster parent, legal guardian or responsible agency official who submitted the FESA application shall provide the original itemized receipt to the Department of Child Protection Services. (b) In lieu of providing the foster parent, legal guardian or responsible agency official who submitted the FESA program application with an original itemized receipt, the eligible schools and educational service providers may provide to the Department of Child Protection Services an original itemized receipt approved and signed off on by the foster parent, legal guardian or responsible agency official who submitted the FESA application, including the service provider's name and address, for all qualifying expenses. (5) Payment for educational services through a FESA shall not preclude foster parents, legal guardians or responsible agency officials from paying for educational services using non-FESA funds. (6) For purposes of continuity of educational attainment, students who enroll in the FESA program shall remain eligible to receive quarterly FESA payments until the participating student returns to a public school, completes high school, or completes the school year in which the student reaches the age of twenty-one (21) if he or she is eligible for special education for individuals with disabilities under the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)), whichever occurs first as applicable. (7) Any funds remaining in a student's Foster Child Education Scholarship Account upon completion of high school shall be deposited into the Kinkade Fostering Access and Inspiring True Hope (FAITH) Scholarship Program Fund. (8) An eligible student shall be allowed to return to his home school district after enrolling in the FESA program, in compliance with regulations adopted by the Department of Child Protection Services which provide for the least disruptive process for doing so. Upon the participating student's return to his or her home school district, the student's Foster Education Scholarship Account shall be placed on temporary hold and quarterly payment to the FESA shall be withheld for such time as until verification is provided that the student has resumed enrollment in an eligible school or completed high school. Any remaining funds in the student's FESA shall remain inviolate during the temporary holding period. However, upon completion of high school, any funds remaining in the FESA shall be deposited in accordance with subsection (7). (9) A student's eligibility to participate in the Foster Child Education Scholarship Account Program, does not disqualify the student's ability to simultaneously participate in either the Equal Opportunity for Students with Special Needs FESA program, the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program or the Mississippi SpeechLanguage Therapy Scholarship for Students with SpeechLanguage Impairments Program. SECTION 10. (1) The Department of Child Protection Services shall manage and oversee FESA funds on behalf of each eligible child. The Department of Child Protection Services shall provide foster parents, legal guardians or responsible agency officials with guidance on eligible uses of funds and required documentation. (2) (a) Foster parents, legal guardians or responsible agency officials shall submit receipts or invoices for qualified expenses to Department of Child Protection Services within thirty (30) days of incurring such expenses. (b) The Department of Child Protection Services shall verify the expenses and submit reimbursement requests to the State Department of Education, which shall reimburse the Department of Child Protection Services for qualified expenses within twenty-one (21) business days of receipt of documentation. (c) Within ten (10) business days of receiving reimbursement, the Department of Child Protection Services shall disburse funds to the foster parent or legal guardian, or to responsible agency official for deposit into the appropriate expense or operating fund of the department. (3) (a) Educational service providers may directly invoice the Department of Child Protection Services for services rendered, subject to verification and approval. (b) The Department of Child Protection Services shall ensure all payments are consistent with qualified expense guidelines. (4) No funds for a FESA may be expended from the total funding formula funds provided in this act, nor shall any school district be required to provide funding for a FESA. SECTION 11. (1) Department of Child Protection Services shall notify foster parents, legal guardians and responsible agency officials of the availability of FESA funds upon a child entering the department's custody. (2) Students participating in the FESA program remain eligible until: (a) They return to public school; (b) They complete the school year in which the student reaches the age of twenty-one (21) if he or she is eligible for special education for individuals with disabilities under the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)); or (c) Their eligibility is revoked due to misuse of funds or noncompliance with program rules. SECTION 12. (1) Subject to appropriation from the General Fund, each student's FESA shall be funded annually at the base student amount as determined under Section 37-151-203 of the Mississippi Student Funding Formula. For each subsequent year, the funded amount shall increase or decrease by the same proportion as the student base amount under Section 37151203 is increased or decreased. (2) No funds for a FESA may be expended from the Mississippi Student Funding Formula, nor shall any school district be required to provide funding for a FESA. SECTION 13. (1) The Department of Child Protection Services in conjunction with the State Department of Education shall develop policies and procedures for the administration of the FESA program to ensure the appropriate use and expenditure of FESA funds, including the accurate and timely submission of reimbursement requests, and required maintenance of detailed records for each eligible student. (2) The State Department of Education shall: (a) Conduct annual audits of the Department of Child Protection Services-managed FESAs to ensure compliance; (b) Establish a process for random audits of individual FESA accounts and service providers; (c) Provide the Department of Child Protection Services with technical assistance and training on program administration. (3) To ensure fraud prevention, the State Department of Education shall: (a) Adopt a process for removing educational service providers that defraud parents and for referring cases of fraud to law enforcement; (b) Establish or contract for the establishment of an online anonymous fraud reporting service; and (c) Establish or contract for the establishment of an anonymous telephone hotline for fraud reporting. SECTION 14. (1) Department of Child Protection Services shall submit an annual report to the Legislature and the State Department of Education detailing: (a) The number of students participating in the FESA program; (b) Total funds disbursed and remaining balances; (c) A summary of the program's impact on foster children's educational outcomes. (2) The State Department of Education shall provide an annual audit report to the Legislature, including findings and recommendations for program improvement. SECTION 15. (1) The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) shall prepare a biennial report, beginning in 2027 and every two (2) years thereafter, assessing efficacy of Foster Child Education Scholarship Accounts, to include the sufficiency of funding, and recommending any suggested changes in state law or policy necessary to improve the FESA program. (2) The report shall assess: (a) The level of participating students' satisfaction with the FESA program; (b) The level of parental or guardian satisfaction with the FESA program; (c) Participating students' performance, both pre-assessment and post-assessment, on the eligible school's current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener, as required in Section 16(f) of this act; (d) Participating students' performance on Advanced Placement examinations or similar courses and any examinations related to college or university admission; provided that eligible schools must report participating students' performance on Advance Placement examinations and any examinations related to college or university admission; (e) The four-year high school graduation rates and college acceptance rates of participating students; provided that eligible schools must report participating students' high school graduation rates and, if known, college acceptance rates; (f) The percentage of funds used for each qualifying expense identified in Section 8(c) of this act; and (g) The fiscal impact to the state and home school districts of the FESA program, which must consider both the impact on revenue and the impact on expenses. Furthermore, the fiscal savings associated with students departing public schools must be explicitly quantified, even if the public school losing the student(s) does not reduce its spending accordingly. (3) The report shall: (a) Apply appropriate analytical and behavioral science methodologies to ensure public confidence in the study; and (b) Protect the identity of participating students and schools by, among other things, keeping anonymous all disaggregated data. (4) PEER shall provide the Legislature with a final copy of the report of the FESA program before December 31 each year the report is due. At the same time, the study shall also be placed in a prominent location on the PEER website. (5) PEER must make its data and methodology available for public review while complying with the requirements of the Family Educational Rights and Privacy Act (20 USCS Section 1232(g)). SECTION 16. To ensure that students are treated fairly and kept safe, all eligible schools shall: (a) Comply with the nondiscrimination policies set forth in 42 USCS 1981; (b) Prior to a participating student's application for enrollment, provide foster parents or legal guardians with details of the school's programs, record of student achievement, experience qualifications, capacities to serve participating student within the scope of their educational needs; (c) Comply with all health and safety laws or codes that apply to nonpublic schools; (d) Hold a valid occupancy permit if required by their municipality; (e) Have no public record of fraud or malfeasance; (f) Require participating students to take a pre-assessment at the beginning of the school year and a post-assessment at the end of the school year. The eligible school shall have the option to select their current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener; (g) Notify a foster parent, legal guardian or responsible agency official applying for the FESA program that the foster parent, legal guardian or responsible agency official waives the right of the participating student to an individual entitlement to a free and appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the FESA program; and (h) Conduct criminal background checks on employees and: (i) Exclude from employment any person not permitted by state law to work in a nonpublic school; and (ii) Exclude from employment any person who might reasonably pose a threat to the safety of students. SECTION 17. (1) An eligible nonpublic school is autonomous and not an agent of the state or federal government and therefore: (a) The State Department of Education or any other government agency shall not regulate the educational program of a nonpublic school or educational service provider that accepts funds from the foster parent, legal guardian or responsible agency official of a participating student beyond the requirements of the FESA program as promulgated in this chapter; (b) The creation of the Foster Child Education Scholarship Account program does not expand the regulatory authority of the state, its officers, or any school district to impose any additional regulation of nonpublic schools or educational service providers beyond those necessary to enforce the requirements of the FESA program; and (c) Eligible schools and educational service providers shall be given the maximum freedom to provide for the educational needs of their students without governmental control. No eligible school or educational service provider shall be required to alter its creed, practices, admission policies or curriculum in order to accept participating students. (2) Eligible schools, or the foster parent, legal guardian or responsible agency official who submitted the FESA application, must submit student performance data to the State Department of Education at the end of the school year, including the individual results of the pre-assessment and post-assessment required in Section 16(f) of this act. The department shall develop a uniformed reporting format for eligible schools to use when submitting assessment results. (3) In any legal proceeding challenging the application of this chapter to an eligible school or educational service provider, the state bears the burden of establishing that the law is necessary and does not impose any undue burden on the eligible school or educational service provider. SECTION 18. This act shall take effect and be in force from and after July 1, 2025.
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33 MISSISSIPPI LEGISLATURE
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55 2025 Regular Session
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77 To: Education
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99 By: Representative White
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1111 # House Bill 1078
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13-## (As Passed the House)
1412
1513 AN ACT TO AMEND SECTIONS 37-181-5, 37-181-7, 37-181-9, 37-181-11, 37-181-15 AND 37-181-19, MISSISSIPPI CODE OF 1972, TO REMOVE OVERLY RESTRICTIVE LANGUAGE WHICH REQUIRED THE PARENT OR GUARDIAN OF AN ELIGIBLE STUDENT RECEIVING ESA FUNDS TO CERTIFY TO THE STATE DEPARTMENT OF EDUCATION THAT THE STUDENT HAS BEEN ACCEPTED INTO AN ELIGIBLE SCHOOL QUALIFIED TO PROVIDE SERVICES FOR THE PARTICIPATING STUDENT'S DISABILITY OR SPECIAL EDUCATION NEEDS, OR PROVIDE SERVICES ADDRESSING A PARTICIPATING STUDENT'S IEP; TO REMOVE THE REQUIREMENT THAT AN ELIGIBLE SCHOOL THAT FAILS TO COMPLY WITH THE CERTIFICATION REQUIREMENTS OF ITS ABILITY TO PROVIDE SERVICES FOR THE PARTICIPATING STUDENT'S DISABILITY OR SPECIAL EDUCATION NEEDS, OR PROVIDE SERVICES ADDRESSING A PARTICIPATING STUDENT'S IEP SHALL BE INELIGIBLE TO PARTICIPATE IN THE ESA PROGRAM THE FOLLOWING YEAR; TO REMOVE THE WAITLIST REQUIREMENT FOR STUDENTS ELIGIBLE TO RECEIVE AN EDUCATIONAL SCHOLARSHIP ACCOUNT UNDER THE "EQUAL OPPORTUNITY FOR STUDENTS WITH SPECIAL NEEDS ACT"; TO PROVIDE THAT, SUBJECT TO APPROPRIATION, EACH STUDENT'S ESA SHALL BE FUNDED AT THE STUDENT BASE AMOUNT AS DETERMINED UNDER THE "MISSISSIPPI STUDENT FUNDING FORMULA"; TO RESTRUCTURE THE FREQUENCY BY WHICH REIMBURSEMENT PAYMENTS SHALL BE MADE TO SERVICE PROVIDERS AND PARENTS FROM QUARTERLY TO MONTHLY; TO AUTHORIZE THE DEPARTMENT TO ENTER INTO A CONTRACTUAL AGREEMENT WITH A THIRD-PARTY VENDOR TO ADMINISTER THE ESA PROGRAM; TO CREATE THE "MISSISSIPPI FOSTER CHILD EDUCATION SCHOLARSHIP ACCOUNT PROGRAM ACT" FOR THE PURPOSE OF ESTABLISHING EDUCATION SCHOLARSHIP ACCOUNTS (FESAS) FOR FOSTER PARENTS, GUARDIANS OR RESPONSIBLE AGENCY OFFICIALS OF THE DEPARTMENT OF CHILD PROTECTION SERVICES FOR FOSTER CHILDREN; TO PRESCRIBE THE CRITERIA FOR DETERMINING ELIGIBILITY FOR PARTICIPATION IN THE PROGRAM AND RECEIPT OF PROGRAM FUNDS; TO PROVIDE FOR THE FUNDING OF EACH STUDENT'S FESA; TO STIPULATE THE OBLIGATIONS OF FOSTER PARENTS, LEGAL GUARDIANS, RESPONSIBLE CPS OFFICIALS, STUDENTS AND SCHOOLS TO BECOME AND REMAIN ELIGIBLE FOR PARTICIPATION; TO PRESCRIBE THE DUTIES OF THE DEPARTMENT OF EDUCATION REGARDING THE ADMINISTRATION OF THE FUNDS; TO REQUIRE PEER TO PREPARE A BIENNIAL REPORT ON THE SUFFICIENCY OF FUNDING FOR FESAS AND STUDENT PERFORMANCE AND ASSESSMENT EVALUATION BEGINNING IN 2027 AND EVERY TWO YEARS THEREAFTER; TO PROVIDE FOR THE ADMINISTRATIVE, FINANCIAL AND ACADEMIC ACCOUNTABILITY STANDARDS TO BE ADHERED TO BY PARTICIPATING SCHOOLS; AND FOR RELATED PURPOSES.
1614
1715 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
1816
1917 SECTION 1. Section 37-181-5, Mississippi Code of 1972, is amended as follows:
2018
2119 37-181-5. (1) An eligible student shall qualify to participate in the ESA program if the parent or guardian signs an agreement promising:
2220
2321 (a) To provide an organized, appropriate educational program with measurable annual goals to their participating student and to provide an education for the participating student in at least the subjects of reading, grammar, mathematics, social studies and science;
2422
2523 (b) To document their participating student's disability at intervals and in a manner required under subsection (8) of this section;
2624
2725 (c) Not to enroll their participating student in a public school and to acknowledge as part of the agreement that the eligible school has provided clear notice to the parent or guardian that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the ESA program;
2826
2927 (d) Not to file for their participating student a certificate of enrollment indicating participation in a home instruction program under Section 37-13-91, Mississippi Code of 1972; and
3028
3129 (e) Not to participate in the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program or the Mississippi Speech-Language Therapy Scholarship for Students with Speech-Language Impairments Program while participating in the ESA program.
3230
3331 (2) Parents or guardians shall use the funds deposited in a participating student's ESA for any of the following qualifying expenses, which shall be incurred within the awarded ESA school year, to educate the student using any of the below methods or combination of methods that meet the requirement in subsection (1)(a) of this section:
3432
3533 (a) Tuition and/or academic fees at an eligible school;
3634
3735 (b) Textbooks related to academic coursework;
3836
3937 (c) Payment to a tutor, as defined in Section 37-181-3(h);
4038
4139 (d) Payment for purchase of curriculum, including any supplemental materials required by the curriculum;
4240
4341 (e) Fees for nationally standardized norm-referenced achievement tests, including alternate assessments; and fees for Advanced Placement examinations or similar courses and any examinations related to college or university admission;
4442
4543 (f) Educational services or therapies from a licensed or certified practitioner or provider, including licensed or certified paraprofessionals or educational aides;
4644
4745 (g) Tuition and fees related to dual enrollment at a postsecondary institution;
4846
4947 (h) Textbooks related to academic coursework at a postsecondary institution;
5048
5149 (i) Surety bond payments if required by the department;
5250
5351 (j) No more than Fifty Dollars ($50.00) in annual consumable school supplies necessary for educational services and therapies, daily classroom activities, and tutoring;
5452
5553 (k) Computer hardware and software and other technological devices if an eligible school, licensed or certified tutor, licensed or certified educational service practitioner or provider, or licensed medical professional verifies in writing that these items are essential for the student to meet annual, measurable educational and academic goals or goals within the scope of the eligible student's IEP. Once a student is no longer participating in the ESA program, computer hardware and software and other technological devices purchased with ESA funds shall be donated to a public school or public library. Qualifying expenses for computer hardware and software include only those expenses incurred within the awarded ESA school year.
5654
5755 * * * (3) To qualify to participate in the program, the parent or guardian of an eligible student shall also certify to the department that they have been accepted into an eligible school qualified to provide services for the participating student's disability or special education needs, or provide services addressing a participating student's IEP, as required under this chapter.
5856
5957 ( * * *43) Neither a participating student, nor anyone on the student's behalf, may receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products in the ESA program. Any refunds or rebates shall be credited directly to the participating student's ESA. The funds in an ESA may only be used for education-related purposes as defined in this chapter.
6058
6159 ( * * *54) (a) Eligible schools, postsecondary institutions and educational service providers that serve participating students shall provide the parent or guardian who submitted the ESA program application with an original itemized receipt, including the service provider's name and address, for all qualifying expenses. The parent or guardian who submitted the ESA application shall provide the original itemized receipt to the department.
6260
6361 (b) In lieu of providing the parent or guardian who submitted the ESA program application with an original itemized receipt, the eligible schools, postsecondary institutions and educational service providers may provide to the department an original itemized receipt approved and signed off on by the parent or guardian who submitted the ESA application, including the service provider's name and address, for all qualifying expenses.
6462
6563 ( * * *65) Payment for educational services through an ESA shall not preclude parents or guardians from paying for educational services using non-ESA funds.
6664
6765 ( * * *76) For purposes of continuity of educational attainment, students who enroll in the ESA program shall remain eligible to receive * * *quarterly monthly ESA payments until the participating student returns to a public school, completes high school, completes the school year in which the student reaches the age of twenty-one (21), or does not have eligibility verified by a parent or guardian as required under subsection (8) of this section, whichever occurs first.
6866
6967 ( * * *87) Any funds remaining in a student's Education Scholarship Account upon completion of high school shall be returned to the state's General Fund.
7068
7169 ( * * *98) Every three (3) years after initial enrollment in the ESA program, a parent or guardian of a participating student, except a student diagnosed as being a person with a permanent disability, shall document that the student continues to be identified by the school district, a federal or state government agency, or a licensed physician or psychometrist as a child with a disability, as defined by the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)).
7270
7371 ( * * *109) An eligible student shall be allowed to return to his home school district at any time after enrolling in the ESA program, in compliance with regulations adopted by the department providing for the least disruptive process for doing so. Upon the participating student's return to his or her home school district, the student's Education Scholarship Account shall be closed and any remaining funds shall be distributed to the student's home school district at the end of the awarded ESA school year.
7472
7573 SECTION 2. Section 37-181-7, Mississippi Code of 1972, is amended as follows:
7674
7775 37-181-7. (1) New enrollment in the ESA program created in this chapter shall be * * *limited to five hundred (500) additional students each year available to all eligible students, as defined in Section 37-181-3. Subject to appropriation from the General Fund, each student's ESA shall be funded at * * *Six Thousand Five Hundred Dollars ($6,500.00) for school year 2015‑2016. For each subsequent year, this amount the student base amount as determined under Section 37-151-203 for the 2025-2026 school year, and shall increase or decrease by the same proportion as the student base amount under Section 37-151-203 is increased or decreased for each subsequent year.
7876
7977 (2) Subject to appropriation, eligible students shall be approved for participation in the ESA program as follows:
8078
8179 (a) Students shall be approved on a first-come, first-served basis, with applications being reviewed on a rolling basis; and
8280
8381 * * *(b) After participation reaches fifty percent (50%) of the annual enrollment limits in subsection (1) of this section, the department shall set annual application deadlines for the remaining number of available ESAs and begin to maintain a waiting list of eligible students. The waitlist shall only include eligible students who have certified to the department that they have been accepted into an eligible school qualified to provide services for the participating student's disability or special education needs, or provide services addressing a participating student's IEP. The waitlist will be maintained in the chronological order in which applications are received. The department shall award ESA program applications in chronological order according to the waitlist; and
8482
8583 ( * * *cb) Participating students who remain eligible for the ESA program are automatically approved for participation for the following year * * * and are not subject to the random selection process.
8684
8785 (3) No funds for an ESA may be expended from the total funding formula funds provided in this chapter, nor shall any school district be required to provide funding for an ESA.
8886
8987 SECTION 3. Section 37-181-9, Mississippi Code of 1972, is amended as follows:
9088
9189 37-181-9. (1) The department shall create a standard form that parents or guardians of students submit to establish their student's eligibility for an Education Scholarship Account. The department shall ensure that the application is readily available to interested families through various sources, including the department's website and the copy of procedural safeguards annually given to parents or guardians. * * *To be considered, an application must include certification that the student has been accepted into an eligible school qualified to provide services for the student's disability or special education needs, or provide services addressing a participating student's IEP.
9290
9391 (2) The department shall provide parents or guardians of participating students with a written explanation of the allowable uses of Education Scholarship Accounts, the responsibilities of parents and the duties of the department. This information shall also be made available on the department's website.
9492
9593 (3) The department shall annually notify all students with an IEP of the existence of the ESA program and shall ensure that lower-income families are made aware of their potential eligibility.
9694
9795 (4) The department may deduct an amount up to a limit of six percent (6%) from appropriations used to fund Education Scholarship Accounts to cover the costs of overseeing the funds and administering the ESA program, which such funds may also be used to cover the cost assessed by a third-party vendor with whom the department has entered a contractual agreement to administer the program and ensure compliance with state regulations.
9896
9997 (5) (a) The department shall make a determination of eligibility, and shall approve the application, within twenty-one (21) business days of receiving an application for participation in the ESA program, subject to the provisions of Section 37-181-3(b).
10098
10199 (b) The department shall provide for a procedure that children with a ruling of hearing impairment or children suspected of a hearing loss shall receive a comprehensive educational assessment which may include the areas of cognitive development, language/speech, audiological and academic achievement from the state-funded Mississippi Assistance Center for Hearing Loss. Children with a ruling of visual impairment or children suspected of a visual impairment shall receive a comprehensive low vision evaluation from the state-funded Low Vision Clinic.
102100
103101 (6) The home school district shall provide the parent or guardian of a participating student with a complete copy of the student's school records, while complying with the Family Educational Rights and Privacy Act of 1974 (20 USCS Section 1232(g)). The record shall be provided no later than thirty (30) days after a parent signs an agreement to participate in the ESA program.
104102
105103 SECTION 4. Section 37-181-11, Mississippi Code of 1972, is amended as follows:
106104
107105 37-181-11. (1) To ensure that funds are spent appropriately, the State Department of Education shall adopt rules and policies necessary for the administration of the ESA program, including the auditing of Education Scholarship Accounts, and shall conduct or contract for random audits throughout the year.
108106
109107 (2) (a) The department shall develop a system for payment of benefits, including, but not limited to, allowing educational service providers to invoice the department for qualified expenses consistent with Section 37-181-5(2), or allowing the parent or guardian who submitted the ESA program application to seek reimbursement for qualified expenses consistent with Section 37-181-5(2).
110108
111109 (b) The department may make payments to educational service providers or reimbursement to the parent or guardian who submitted the ESA program application via check or warrant or electronic funds transfer or any other means of payment deemed to be commercially viable or cost-effective.
112110
113111 (c) The department may also establish by rule that some payments to educational service providers will be made on a * * *quarterly monthly basis, rather than an annual basis, if the educational services will be rendered over an extended period of time.
114112
115113 (3) The department shall adopt a process for removing educational service providers that defraud parents and for referring cases of fraud to law enforcement.
116114
117115 (4) The department shall establish or contract for the establishment of an online anonymous fraud reporting service.
118116
119117 (5) The department shall establish or contract for the establishment of an anonymous telephone hotline for fraud reporting.
120118
121119 SECTION 5. Section 37-181-15, Mississippi Code of 1972, is amended as follows:
122120
123121 37-181-15. * * *(1) To ensure that students are treated fairly and kept safe, all eligible schools shall:
124122
125123 (a) Comply with the nondiscrimination policies set forth in 42 USCS 1981;
126124
127125 (b) Prior to a participating student's application for enrollment, provide parents or guardians with details of the school's programs, record of student achievement, qualifications, experience, capacities to serve students with special needs, and capacity to serve the participating student within the scope of their IEP;
128126
129127 (c) Comply with all health and safety laws or codes that apply to nonpublic schools;
130128
131129 (d) Hold a valid occupancy permit if required by their municipality;
132130
133131 (e) Have no public record of fraud or malfeasance;
134132
135133 (f) Require participating students to take a pre-assessment at the beginning of the school year and a post-assessment at the end of the school year. The eligible school shall have the option to select their current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener;
136134
137135 (g) Notify a parent or guardian applying for the ESA program that the parent or guardian waives the right of the participating student to an individual entitlement to a free and appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the ESA program;
138136
139137 (h) Conduct criminal background checks on employees and:
140138
141139 (i) Exclude from employment any person not permitted by state law to work in a nonpublic school; and
142140
143141 (ii) Exclude from employment any person who might reasonably pose a threat to the safety of students; and
144142
145143 (i) An eligible school shall certify to the department upon enrollment of a participating student that the eligible school shall provide services for the participating student's disability or special education needs, or shall provide services addressing a participating student's IEP. Such certification must be received by the department before the ESA is reimbursed to an eligible student.
146144
147145 * * * (2) Failure to comply with these requirements shall deem the eligible school ineligible to participate in the ESA program the following year.
148146
149147 SECTION 6. Section 37-181-19, Mississippi Code of 1972, is amended as follows:
150148
151149 37-181-19. (1) The State Department of Education may receive and expend contributions from any public or private source to fund ESAs for participating students.
152150
153151 (2) The department may enter into a contractual agreement with a third-party vendor to administer the ESA program and ensure compliance with state regulations.
154152
155153 SECTION 7. Sections 9 through 19 of this act shall be known and may be cited as the "Mississippi Foster Child Education Scholarship Account Program Act."
156154
157155 SECTION 8. As used in Sections 9 through 19 of this act the following terms shall have the meanings ascribed herein, unless context of use clearly requires otherwise:
158156
159157 (a) "FESA program" means the Foster Child Education Scholarship Account (FESA) program created in this chapter.
160158
161159 (b) "Eligible student" means a child who:
162160
163161 (i) Is in the custody of Department of Child Protection Services as a foster child or ward of the state; and
164162
165163 (ii) Has been in temporary placement exceeding six (6) consecutive months; and
166164
167165 (iii) Is not concurrently enrolled in a public school or receiving funding through another state or federal educational assistance program.
168166
169167 (c) "Qualified expenses" include, but are not limited to:
170168
171169 (i) Tuition and fees at an eligible school, as defined in this section;
172170
173171 (ii) Textbooks, digital books, or other instructional materials required for coursework;
174172
175173 (iii) Tutoring services provided by a certified teacher or licensed provider;
176174
177175 (iv) Curriculum purchases, including supplemental and enrichment materials;
178176
179177 (v) Fees for standardized testing, advanced placement examinations, or college entrance exams;
180178
181179 (vi) Educational services or therapies from licensed or certified providers, including speech therapy, occupational therapy, and mental health counseling;
182180
183181 (vii) Technology expenses, including computers, tablets, or software, deemed essential by the Department of Child Protection Services or an educational provider;
184182
185183 (viii) Dual enrollment or college credit fees and related textbooks or materials;
186184
187185 (ix) Costs associated with extracurricular or educational enrichment activities, such as music lessons, art classes, or STEM programs, as preapproved by Department of Child Protection Services.
188186
189187 (d) "Eligible school" means a state-accredited special purpose school, a state-accredited nonpublic school, or a nonpublic school located in the state that has enrolled a participating student and is providing educational instruction and services to the participating student. An eligible school does not include a home instruction program under Section
190188
191189 371391, Mississippi Code of 1972.
192190
193191 (e) "Educational service provider" means an eligible school, tutor, or other person or organization that provides education-related services and products to participating students.
194192
195193 (f) "Awarded FESA school year" means the duration of the school year in which FESA program funds are deposited in a student's FESA.
196194
197195 (g) "Responsible agency official" means an employee of the Mississippi Department of Child Protection Services who has been assigned as caseload manager, case worker, counselor or social worker for a child in the department's custody who has not received a permanent placement since becoming a ward of the state.
198196
199197 (h) An eligible school shall provide notice to a participating student's home school district when the eligible student enrolls in the eligible school with an FESA.
200198
201199 SECTION 9. (1) An eligible student shall qualify to participate in the FESA program if the foster parent, legal guardian or responsible agency official signs an agreement promising:
202200
203201 (a) To provide an organized, appropriate educational program with measurable annual goals to their participating student and to provide an education for the participating student in at least the subjects of reading, grammar, mathematics, social studies and science;
204202
205203 (b) To document their participating student's disability at intervals and in a manner required under subsection (8) of this section;
206204
207205 (c) Not to enroll their participating student in a public school and to acknowledge as part of the agreement that the eligible school has provided clear notice to the parent or guardian that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the FESA program; and
208206
209207 (d) Not to file for their participating student a certificate of enrollment indicating participation in a home instruction program under Section 371391, Mississippi Code of 1972.
210208
211209 (2) Parents, legal guardians or responsible agency officials shall use the funds deposited in a participating student's FESA for any of the qualified expenses defined in Section 8(c) of this act, which shall be incurred within the awarded FESA school year, to educate the student.
212210
213211 (3) Neither a participating student, nor anyone on the student's behalf, may receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products in the FESA program. Any refunds or rebates shall be credited directly to the participating student's FESA. The funds in an FESA may only be used for education-related purposes.
214212
215213 (4) (a) Eligible schools and educational service providers that serve participating students shall provide the foster parent, legal guardian or responsible agency official who submitted the FESA program application with an original itemized receipt, including the service provider's name and address, for all qualifying expenses. The foster parent, legal guardian or responsible agency official who submitted the FESA application shall provide the original itemized receipt to the Department of Child Protection Services.
216214
217215 (b) In lieu of providing the foster parent, legal guardian or responsible agency official who submitted the FESA program application with an original itemized receipt, the eligible schools and educational service providers may provide to the Department of Child Protection Services an original itemized receipt approved and signed off on by the foster parent, legal guardian or responsible agency official who submitted the FESA application, including the service provider's name and address, for all qualifying expenses.
218216
219217 (5) Payment for educational services through a FESA shall not preclude foster parents, legal guardians or responsible agency officials from paying for educational services using non-FESA funds.
220218
221219 (6) For purposes of continuity of educational attainment, students who enroll in the FESA program shall remain eligible to receive quarterly FESA payments until the participating student returns to a public school, completes high school, or completes the school year in which the student reaches the age of twenty-one (21) if he or she is eligible for special education for individuals with disabilities under the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)), whichever occurs first as applicable.
222220
223221 (7) Any funds remaining in a student's Foster Child Education Scholarship Account upon completion of high school shall be deposited into the Kinkade Fostering Access and Inspiring True Hope (FAITH) Scholarship Program Fund.
224222
225223 (8) An eligible student shall be allowed to return to his home school district after enrolling in the FESA program, in compliance with regulations adopted by the Department of Child Protection Services which provide for the least disruptive process for doing so. Upon the participating student's return to his or her home school district, the student's Foster Education Scholarship Account shall be placed on temporary hold and quarterly payment to the FESA shall be withheld for such time as until verification is provided that the student has resumed enrollment in an eligible school or completed high school. Any remaining funds in the student's FESA shall remain inviolate during the temporary holding period. However, upon completion of high school, any funds remaining in the FESA shall be deposited in accordance with subsection (7).
226224
227225 (9) A student's eligibility to participate in the Foster Child Education Scholarship Account Program, does not disqualify the student's ability to simultaneously participate in either the Equal Opportunity for Students with Special Needs FESA program, the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program or the Mississippi SpeechLanguage Therapy Scholarship for Students with SpeechLanguage Impairments Program.
228226
229227 SECTION 10. (1) The Department of Child Protection Services shall manage and oversee FESA funds on behalf of each eligible child. The Department of Child Protection Services shall provide foster parents, legal guardians or responsible agency officials with guidance on eligible uses of funds and required documentation.
230228
231229 (2) (a) Foster parents, legal guardians or responsible agency officials shall submit receipts or invoices for qualified expenses to Department of Child Protection Services within thirty (30) days of incurring such expenses.
232230
233231 (b) The Department of Child Protection Services shall verify the expenses and submit reimbursement requests to the State Department of Education, which shall reimburse the Department of Child Protection Services for qualified expenses within twenty-one (21) business days of receipt of documentation.
234232
235233 (c) Within ten (10) business days of receiving reimbursement, the Department of Child Protection Services shall disburse funds to the foster parent or legal guardian, or to responsible agency official for deposit into the appropriate expense or operating fund of the department.
236234
237235 (3) (a) Educational service providers may directly invoice the Department of Child Protection Services for services rendered, subject to verification and approval.
238236
239237 (b) The Department of Child Protection Services shall ensure all payments are consistent with qualified expense guidelines.
240238
241239 (4) No funds for a FESA may be expended from the total funding formula funds provided in this act, nor shall any school district be required to provide funding for a FESA.
242240
243241 SECTION 11. (1) Department of Child Protection Services shall notify foster parents, legal guardians and responsible agency officials of the availability of FESA funds upon a child entering the department's custody.
244242
245243 (2) Students participating in the FESA program remain eligible until:
246244
247245 (a) They return to public school;
248246
249247 (b) They complete the school year in which the student reaches the age of twenty-one (21) if he or she is eligible for special education for individuals with disabilities under the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)); or
250248
251249 (c) Their eligibility is revoked due to misuse of funds or noncompliance with program rules.
252250
253251 SECTION 12. (1) Subject to appropriation from the General Fund, each student's FESA shall be funded annually at the base student amount as determined under Section 37-151-203 of the Mississippi Student Funding Formula. For each subsequent year, the funded amount shall increase or decrease by the same proportion as the student base amount under Section 37151203 is increased or decreased.
254252
255253 (2) No funds for a FESA may be expended from the Mississippi Student Funding Formula, nor shall any school district be required to provide funding for a FESA.
256254
257255 SECTION 13. (1) The Department of Child Protection Services in conjunction with the State Department of Education shall develop policies and procedures for the administration of the FESA program to ensure the appropriate use and expenditure of FESA funds, including the accurate and timely submission of reimbursement requests, and required maintenance of detailed records for each eligible student.
258256
259257 (2) The State Department of Education shall:
260258
261259 (a) Conduct annual audits of the Department of Child Protection Services-managed FESAs to ensure compliance;
262260
263261 (b) Establish a process for random audits of individual FESA accounts and service providers;
264262
265263 (c) Provide the Department of Child Protection Services with technical assistance and training on program administration.
266264
267265 (3) To ensure fraud prevention, the State Department of Education shall:
268266
269267 (a) Adopt a process for removing educational service providers that defraud parents and for referring cases of fraud to law enforcement;
270268
271269 (b) Establish or contract for the establishment of an online anonymous fraud reporting service; and
272270
273271 (c) Establish or contract for the establishment of an anonymous telephone hotline for fraud reporting.
274272
275273 SECTION 14. (1) Department of Child Protection Services shall submit an annual report to the Legislature and the State Department of Education detailing:
276274
277275 (a) The number of students participating in the FESA program;
278276
279277 (b) Total funds disbursed and remaining balances;
280278
281279 (c) A summary of the program's impact on foster children's educational outcomes.
282280
283281 (2) The State Department of Education shall provide an annual audit report to the Legislature, including findings and recommendations for program improvement.
284282
285283 SECTION 15. (1) The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) shall prepare a biennial report, beginning in 2027 and every two (2) years thereafter, assessing efficacy of Foster Child Education Scholarship Accounts, to include the sufficiency of funding, and recommending any suggested changes in state law or policy necessary to improve the FESA program.
286284
287285 (2) The report shall assess:
288286
289287 (a) The level of participating students' satisfaction with the FESA program;
290288
291289 (b) The level of parental or guardian satisfaction with the FESA program;
292290
293291 (c) Participating students' performance, both pre-assessment and post-assessment, on the eligible school's current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener, as required in Section 16(f) of this act;
294292
295293 (d) Participating students' performance on Advanced Placement examinations or similar courses and any examinations related to college or university admission; provided that eligible schools must report participating students' performance on Advance Placement examinations and any examinations related to college or university admission;
296294
297295 (e) The four-year high school graduation rates and college acceptance rates of participating students; provided that eligible schools must report participating students' high school graduation rates and, if known, college acceptance rates;
298296
299297 (f) The percentage of funds used for each qualifying expense identified in Section 8(c) of this act; and
300298
301299 (g) The fiscal impact to the state and home school districts of the FESA program, which must consider both the impact on revenue and the impact on expenses. Furthermore, the fiscal savings associated with students departing public schools must be explicitly quantified, even if the public school losing the student(s) does not reduce its spending accordingly.
302300
303301 (3) The report shall:
304302
305303 (a) Apply appropriate analytical and behavioral science methodologies to ensure public confidence in the study; and
306304
307305 (b) Protect the identity of participating students and schools by, among other things, keeping anonymous all disaggregated data.
308306
309307 (4) PEER shall provide the Legislature with a final copy of the report of the FESA program before December 31 each year the report is due. At the same time, the study shall also be placed in a prominent location on the PEER website.
310308
311309 (5) PEER must make its data and methodology available for public review while complying with the requirements of the Family Educational Rights and Privacy Act (20 USCS Section 1232(g)).
312310
313311 SECTION 16. To ensure that students are treated fairly and kept safe, all eligible schools shall:
314312
315313 (a) Comply with the nondiscrimination policies set forth in 42 USCS 1981;
316314
317315 (b) Prior to a participating student's application for enrollment, provide foster parents or legal guardians with details of the school's programs, record of student achievement, experience qualifications, capacities to serve participating student within the scope of their educational needs;
318316
319317 (c) Comply with all health and safety laws or codes that apply to nonpublic schools;
320318
321319 (d) Hold a valid occupancy permit if required by their municipality;
322320
323321 (e) Have no public record of fraud or malfeasance;
324322
325323 (f) Require participating students to take a pre-assessment at the beginning of the school year and a post-assessment at the end of the school year. The eligible school shall have the option to select their current assessment used to demonstrate academic progress, a nationally standardized norm-referenced achievement test, or a current state board-approved screener;
326324
327325 (g) Notify a foster parent, legal guardian or responsible agency official applying for the FESA program that the foster parent, legal guardian or responsible agency official waives the right of the participating student to an individual entitlement to a free and appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the FESA program; and
328326
329327 (h) Conduct criminal background checks on employees and:
330328
331329 (i) Exclude from employment any person not permitted by state law to work in a nonpublic school; and
332330
333331 (ii) Exclude from employment any person who might reasonably pose a threat to the safety of students.
334332
335333 SECTION 17. (1) An eligible nonpublic school is autonomous and not an agent of the state or federal government and therefore:
336334
337335 (a) The State Department of Education or any other government agency shall not regulate the educational program of a nonpublic school or educational service provider that accepts funds from the foster parent, legal guardian or responsible agency official of a participating student beyond the requirements of the FESA program as promulgated in this chapter;
338336
339337 (b) The creation of the Foster Child Education Scholarship Account program does not expand the regulatory authority of the state, its officers, or any school district to impose any additional regulation of nonpublic schools or educational service providers beyond those necessary to enforce the requirements of the FESA program; and
340338
341339 (c) Eligible schools and educational service providers shall be given the maximum freedom to provide for the educational needs of their students without governmental control. No eligible school or educational service provider shall be required to alter its creed, practices, admission policies or curriculum in order to accept participating students.
342340
343341 (2) Eligible schools, or the foster parent, legal guardian or responsible agency official who submitted the FESA application, must submit student performance data to the State Department of Education at the end of the school year, including the individual results of the pre-assessment and post-assessment required in Section 16(f) of this act. The department shall develop a uniformed reporting format for eligible schools to use when submitting assessment results.
344342
345343 (3) In any legal proceeding challenging the application of this chapter to an eligible school or educational service provider, the state bears the burden of establishing that the law is necessary and does not impose any undue burden on the eligible school or educational service provider.
346344
347345 SECTION 18. This act shall take effect and be in force from and after July 1, 2025.