ND
North Dakota Senate Bill SB2303

North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2303 Compare Versions

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22 Sixty-ninth
33 Legislative Assembly
44 of North Dakota
55 Introduced by
66 Senators Wobbema, Boehm, Cory, Gerhardt
77 Representatives Hauck, Koppelman
88 A BILL for an Act to create and enact a new chapter to title 15.1 of the North Dakota Century
99 Code, relating to an education savings account program.
1010 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
1111 SECTION 1. A new chapter to title 15.1 of the North Dakota Century Code is created and
1212 enacted as follows:
1313 Definitions.
1414 As used in this chapter:
1515 1."Administrator" means an organization registered by the secretary of state to do
16-business in North Dakota and designated by the Bank of North Dakota to assist in the
17-implementation of this chapter.
16+business in North Dakota and designated by the Bank of North Dakota to implement
17+this chapter.
1818 2."Department" means the department of public instruction.
1919 3."Education service provider" means an individual or organization approved to provide
2020 qualified education services. The term does not include a participating school.
2121 4."Eligible postsecondary institution" means a community college, an accredited
2222 university, or an accredited private postsecondary institution.
2323 5."Eligible student" means:
2424 a.An elementary or secondary student who is a resident of this state and is eligible
2525 to attend a public school; or
2626 b.A student who has received a scholarship under the education savings account
2727 program until the student graduates high school or reaches twenty-one years of
28-age .
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30-ENGROSSED SENATE BILL NO. 2303
31-FIRST ENGROSSMENT
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28+age, regardless of household income.
5429 6."Parent" means a resident of this state who is a parent, guardian, custodian, or other
5530 person with the authority to act on behalf of the child.
56-7."Participating school" means any nonpublic school providing education to elementary
57-students, secondary students, or both that has notified the administrator of the
58-school's intention to participate in the education savings account program and comply
59-with the education savings account program requirements under this chapter and
60-related administrative rules.
61-8."Private tutoring" means qualified tutoring services approved to receive payment under
62-this chapter.
63-Account deposits - Parent agreement - Qualified expenses - Enrollment.
64-1.The Bank of North Dakota by July fifteenth of each year shall deposit into each
65-education savings account sixty percent of the dollar amount under subsection 3 of
66-section 15.1 - 27 - 04.1 for the respective year.
67-2.The department shall give priority access to the education savings account program to
68-the sibling of a student already enrolled in the education savings account program .
69-3.A parent of an eligible student qualifies for a state grant to the child's education
70-savings account if the parent signs an agreement with the department promising:
71-a.To provide an education for the eligible student in at least the subjects of reading,
72-grammar, mathematics, social studies, and science;
73-b.Not to enroll the parent's eligible student in a public school;
74-c.To use education savings account program funds solely for qualified expenses
75-under this chapter, as identified in subsection 4;
76-d.To comply with the requirements outlined in this chapter and any related rules;
77-e.If the participating student is a child with a disability, to acknowledge the parent
78-has received information from the department and understands participation in
79-the education savings account program qualifies as a parental placement of the
80-parent's child under the Individuals with Disabilities Education Act [Pub. L.
81-108 - 446; 20 U.S.C. 1412(a)(10)(A)]; and
82-f.To notify the department if the parent's student terminates participation in the
83-education savings account program and enrolls in a public school.
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32+ SENATE BILL NO. 2303
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58+7."Participating school" means any private school providing education to elementary
59+students, secondary students, or both that has notified the administrator of the
60+school's intention to participate in the education savings account program and comply
61+with the education savings account program requirements under this chapter and
62+related administrative rules.
63+8."Private tutoring" means qualified tutoring services approved to receive payment under
64+this chapter.
65+Account deposits - Parent agreement - Qualified expenses - Enrollment.
66+1.The Bank of North Dakota shall deposit into an education savings account eighty
67+percent of the dollar amount under subsection 3 of section 15.1 - 27 - 04.1 for the
68+respective year.
69+2.The department shall give priority access to the education savings account program to
70+the sibling of a student already enrolled in the education savings account program .
71+3.A parent of an eligible student qualifies for a state grant to the child's education
72+savings account if the parent signs an agreement promising:
73+a.To provide an education for the eligible student in at least the subjects of reading,
74+grammar, mathematics, social studies, and science;
75+b.Not to enroll the parent's eligible student in a public school;
76+c.To use education savings account program funds solely for qualified expenses
77+under this chapter;
78+d.To comply with the requirements outlined in this chapter and any related rules;
79+e.If the participating student is a child with a disability, to acknowledge the parent
80+has received information from the department and understands participation in
81+the education savings account program qualifies as a parental placement of the
82+parent's child under the Individuals with Disabilities Education Act [Pub. L.
83+108 - 446; 20 U.S.C. 1412(a)(10)(A)]; and
84+f.To notify the department if the parent's student terminates participation in the
85+education savings account program and enrolls in a public school.
11686 4.A parent participating in the education savings account program shall use the funds
11787 deposited in the eligible student's account for the following qualifying expenses to
11888 educate the eligible student;
119-a.Tuition and fees at a participating school;
120-b.Textbooks and supplies as required by a participating school;
121-c.Payment for private tutoring or to another educational service provider;
122-d.Payment for educational therapy or services, including occupational therapy,
123-behavioral therapy, physical therapy, speech-language therapy, and audiology
124-therapy from a licensed or certified practitioner or provider, including a licensed or
125-certified paraprofessional or educational aid;
126-e.Payment for purchase of curriculum;
127-f.Tuition or fees for a nonpublic online learning program;
128-g.Fees for national norm-referenced examinations, advanced placement
129-examinations or similar courses, and any examinations related to college or
130-university admission;
131-h.Computer hardware, software, or other technological device that is used solely
132-for a student's educational needs and approved by the department or a licensed
133-physician, provided hardware purchased with education savings account funds
134-may not be resold within one year of purchase;
135-i.Reasonable fees for transportation paid to a fee - for - service transportation
136-provider for the student to travel to and from an education service provider;
137-j.Tuition and fees at an eligible postsecondary institution;
138-k.A textbook required for college or university courses; and
139-l.Upon graduation, a transfer to a North Dakota education savings plan under
140-section 6 - 09 - 38.
141-5.The administrator may adjust the qualified expenses identified in subsection 4, if
142-necessary.
143-6.A participating school, private tutor, eligible postsecondary institution, or other
144-education service provider may not refund, rebate, or share a student's grant with a
145-parent or the student in any manner.
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178-7.A parent may make a payment for the cost of educational programs and services not
179-covered by the funds in the child's account.
180-8.A participating student must inform the department of the student's school district of
181-residence for the purposes of calculating state aid for the school district of residence .
182-The department shall forward ten percent of the dollar amount under subsection 3 of
183-section 15.1 - 27 - 04.1 for the respective year to the school district of residence for each
184-participating student residing in that school district in addition to any other state aid
185-paid to the school district .
186-9.The state treasurer by July fifteenth of each year shall transfer the funds required for
187-education savings accounts from the general fund to the Bank of North Dakota for
188-deposit in each education savings account.
189-10.Funds, not to exceed twenty-five percent of the amount under subsection 1, not
190-expended over the course of a school year may be carried forward for use in the
191-following school year for a child who remains in the education savings account
192-program. If a parent removes a child from the education savings account program
193-before the end of the school year, any remaining funds from that school year must be
194-returned to the state and be allocated to fund other accounts. A student may transfer
195-to another nonpublic school or home school and retain the funds in the education
196-savings account.
197-11.Funds deposited in an education savings account do not constitute taxable income to
198-the parent or the education savings account student.
199-Bank of North Dakota - Administrator - Administration.
200-1.The Bank of North Dakota shall:
201-a.Qualify private financial management firms to manage and administer education
202-savings accounts.
203-b.Conduct or contract for the auditing of accounts and, at a minimum, conduct
204-random audits of accounts on an annual basis. The Bank of North Dakota may
205-make a parent of an eligible student ineligible for the education savings account
206-program if the parent substantially misuses the funds in the account.
207-c.Refer cases of substantial misuse of funds to law enforcement for investigation if
208-evidence of fraudulent use of an account is obtained.
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242-d.Make payments to eligible students' education savings accounts on a quarterly
243-basis.
244-e.Adopt rules and procedures as necessary for the administration of the education
245-savings account program.
246-2.The administrator shall provide to the parent of a participating student a written
247-explanation of the allowable uses of education saving accounts, the responsibilities of
248-the parent, and the duties of the administrator.
249-Participating schools - Accountability standards.
250-1.To ensure students are treated fairly and kept safe, each participating school shall:
251-a.Comply with all health and safety laws or codes that apply to participating
252-schools;
253-b.Obtain certification of approval under section 15.1 - 06 - 06.1;
254-c.Hold a valid occupancy permit if required by the school's municipality; and
255-d.Certify the school complies with the nondiscrimination policies under [42 U.S.C.
256-1981] .
257-2.To ensure funds are spent appropriately, a participating school shall:
258-a.Provide a parent with a receipt for all qualifying expenses at the school.
259-b.Demonstrate the school's financial viability, if the school is to receive fifty
260-thousand dollars or more during the school year, by filing with the administrator
261-before the start of the school year:
262-(1)A surety bond payable to the state in an amount equal to the aggregate
263-amount of the funds from education savings accounts expected to be paid
264-during the school year from students admitted at the participating school; or
265-(2)Financial information demonstrating the school has the ability to pay an
266-aggregate amount equal to the amount of the funds from education savings
267-accounts expected to be paid during the school year to students admitted to
268-the participating school.
269-3.To allow parents and taxpayers to measure the achievements of the education savings
270-account program :
271-a.Parents shall ensure the parents are in compliance with all state law pertaining to
272-the category of nonpublic schools the student is participating in.
273-Page No. 5 25.0768.03000
122+a.Tuition and fees at a participating school;
123+b.A textbook required by a participating school;
124+c.Payment for private tutoring or to another educational service provider;
125+d.Payment for purchase of curriculum;
126+e.Tuition or fees for a nonpublic online learning program;
127+f.Fees for national norm-referenced examinations, advanced placement
128+examinations or similar courses, and any examinations related to college or
129+university admission;
130+g.Computer hardware, software, or other technological device that is used solely
131+for a student's educational needs and approved by the department or a licensed
132+physician, provided hardware purchased with education savings account funds
133+may not be resold within one year of purchase;
134+h.Reasonable fees for transportation paid to a fee - for - service transportation
135+provider for the student to travel to and from an education service provider;
136+i.Tuition and fees at an eligible postsecondary institution; or
137+j.A textbook required for college or university courses.
138+5.A participating school, private tutor, eligible postsecondary institution, or other
139+education service provider may not refund, rebate, or share a student's grant with a
140+parent or the student in any manner.
141+6.A parent may make a payment for the cost of educational programs and services not
142+covered by the funds in the child's account.
143+7.A participating student must be counted in the enrollment figures for the student's
144+school district of residence for the purposes of calculating state aid to the school
145+district of residence . The funds needed for a grant to an education savings account
146+must be subtracted from the state school aid payable to the student's school district of
147+residence and forwarded to the Bank of North Dakota for deposit in the education
148+savings account. Twenty percent of the dollar amount under subsection 3 of section
149+15.1 - 27 - 04.1 for the respective year per grant must be paid to the school district of
150+residence .
151+8.Funds not expended over the course of a school year may be carried forward for use
152+in the following school year for a child who remains in the education savings account
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306-b.The department, or an organization chosen by the department, shall:
307-(1)Ensure compliance with all student privacy laws;
308-(2)Collect all test results;
309-(3)Provide the test results, associated learning gains, and graduation rates to
310-the public on the department's website after the third year of test and
311-graduation-related data collection. The findings must be aggregated by the
312-student's grade level, gender, family income level, number of years of
313-participation in the education savings account program , and race;
314-(4)Provide rates for high school graduation, college attendance, and college
315-graduation for participating students to the public on the department's
316-website after the third year of test and test-related data collection; and
317-(5)Administer an annual parental satisfaction survey requesting each parent of
318-a student receiving an education savings account program grant indicate
319-the number of years the child has participated in the education savings
320-account program and express the parent's:
321-(a)Satisfaction with the education savings account program ; and
322-(b)Opinions on other topics, items, or issues that may indicate the
323-effectiveness of the education savings account program.
324-4.A participating school or other education service provider is autonomous and not an
325-agent of the state or federal government and:
326-a.The department may not regulate the educational program of a participating
327-school or education service provider that accepts funds from an education
328-savings account, except as provided under this chapter and chapter 15.1 - 23;
329-b.The creation of the education savings account program does not expand the
330-regulatory authority of the state, its officers, or a school district to impose an
331-additional regulation of participating schools or education service providers
332-beyond the regulations necessary to enforce the requirements of the education
333-savings account program ; and
334-c.Participating schools and education service providers must have the freedom to
335-provide for the educational needs of the school's students without governmental
336-control.
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186+program. If a parent removes a child from the education savings account program
187+before the end of the school year, any remaining funds from that school year must be
188+returned to the state and be allocated to fund other accounts. A student may transfer
189+to another nonpublic school or home school and retain the funds in the education
190+savings account.
191+9.Funds deposited in an education savings account do not constitute taxable income to
192+the parent or the education savings account student.
193+Bank of North Dakota - Administrator - Administration.
194+1.The Bank of North Dakota shall:
195+a.Qualify private financial management firms to manage and administer education
196+savings accounts.
197+b.Conduct or contract for the auditing of accounts and, at a minimum, conduct
198+random audits of accounts on an annual basis. The Bank of North Dakota may
199+make a parent of an eligible student ineligible for the education savings account
200+program if the parent substantially misuses the funds in the account.
201+c.Refer cases of substantial misuse of funds to law enforcement for investigation if
202+evidence of fraudulent use of an account is obtained.
203+d.Make payments to eligible students' education savings accounts on a quarterly
204+basis.
205+e.Adopt rules and procedures as necessary for the administration of the education
206+savings account program.
207+2.The administrator shall provide to the parent of a participating student a written
208+explanation of the allowable uses of education saving accounts, the responsibilities of
209+the parent, and the duties of the administrator.
210+Participating schools - Accountability standards.
211+1.To ensure students are treated fairly and kept safe, each participating private school
212+shall:
213+a.Comply with all health and safety laws or codes that apply to private schools;
214+b.Hold a valid occupancy permit if required by the school's municipality;
215+c.Certify the school complies with the nondiscrimination policies under [42 U.S.C.
216+1981]; and
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250+d.Conduct criminal background checks on employees. The participating school
251+shall exclude from employment any individual who:
252+(1)Is not permitted by state law to work in a private school; and
253+(2)Might reasonably pose a threat to the safety of students.
254+2.To ensure funds are spent appropriately, a participating school shall:
255+a.Provide a parent with a receipt for all qualifying expenses at the school.
256+b.Demonstrate the school's financial viability, if the school is to receive fifty
257+thousand dollars or more during the school year, by filing with the administrator
258+before the start of the school year:
259+(1)A surety bond payable to the state in an amount equal to the aggregate
260+amount of the funds from education savings accounts expected to be paid
261+during the school year from students admitted at the participating school; or
262+(2)Financial information demonstrating the school has the ability to pay an
263+aggregate amount equal to the amount of the funds from education savings
264+accounts expected to be paid during the school year to students admitted to
265+the participating school.
266+3.To allow parents and taxpayers to measure the achievements of the education savings
267+account program :
268+a.Parents shall ensure:
269+(1)The eligible student annually takes the state achievement tests, nationally
270+norm-referenced tests, or equivalent tests that measure learning gains in
271+mathematics and language arts, and provide for value-added assessment. If
272+a parent selects the state achievement test, the department shall pay
273+associated costs and materials;
274+(2)The results of the tests are provided to the department or an organization
275+chosen by the state on an annual basis;
276+(3)The student information is reported in a way that allows the department to
277+aggregate data by grade level, gender, family income level, and race; and
278+(4)The department, or an organization chosen by the department, is informed
279+of the eligible student's graduation from high school.
280+b.The department, or an organization chosen by the department, shall:
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314+(1)Ensure compliance with all student privacy laws;
315+(2)Collect all test results;
316+(3)Provide the test results, associated learning gains, and graduation rates to
317+the public on the department's website after the third year of test and
318+graduation-related data collection. The findings must be aggregated by the
319+student's grade level, gender, family income level, number of years of
320+participation in the education savings account program , and race;
321+(4)Provide rates for high school graduation, college attendance, and college
322+graduation for participating students to the public on the department's
323+website after the third year of test and test-related data collection; and
324+(5)Administer an annual parental satisfaction survey requesting each parent of
325+a student receiving an education savings account program grant indicate
326+the number of years the child has participated in the education savings
327+account program and express the parent's:
328+(a)Satisfaction with the education savings account program ; and
329+(b)Opinions on other topics, items, or issues that may indicate the
330+effectiveness of the education savings account program.
331+4.A participating private school or other education service provider is autonomous and
332+not an agent of the state or federal government and:
333+a.The department may not regulate the educational program of a participating
334+private school or education service provider that accepts funds from an education
335+savings account, except as otherwise provided by law;
336+b.The creation of the education savings account program does not expand the
337+regulatory authority of the state, its officers, or a school district to impose an
338+additional regulation of private schools or education service providers beyond the
339+regulations necessary to enforce the requirements of the education savings
340+account program ; and
341+c.Participating private schools and education service providers must have the
342+freedom to provide for the educational needs of the school's students without
343+governmental control.
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370376 Department of public instruction - Administrator - Duties.
371377 1.The administrator shall:
372378 a.Ensure eligible students and parents are informed annually of the schools that
373379 will be participating in the education savings account program.
374380 b.Create a standard form a parent of an eligible student may submit to establish a
375381 student's eligibility for the education savings account program. The administrator
376382 shall ensure the application is readily available to interested families through
377383 various sources, including the department's website.
378384 c.Accept applications on a year-round basis and shall approve applications in a
379385 reasonable time frame.
380386 d.Execute a multimedia marketing program targeting eligible families, especially
381387 those below the state's median household income, informing the families about
382388 the education savings account program and how to apply.
383389 e.Establish a web and phone-based support system providing parents with
384390 education savings account program application support and ongoing account
385391 maintenance support.
386392 2.The department may bar a participating school or education service provider from the
387393 education savings account program if the department determines the participating
388394 school or education provider has:
389395 a.Routinely failed to comply with the accountability standards established under
390396 this chapter; or
391397 b.Failed to provide the eligible student with the educational services funded by the
392398 education savings account.
393399 3.If the department bars a participating school or education provider from the education
394400 savings account program , the department shall notify eligible students and parents of
395401 the decision as quickly as possible. A parent may appeal a decision of the department
396402 under chapter 28 - 32.
397403 4.The department shall adopt rules and procedures as necessary for the administration
398404 of the education savings account program.
399405 School districts of residence - Duties.
400406 The school district of residence :
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434440 1.Shall provide a participating school or education provider that has admitted an eligible
435441 student under this chapter with a complete copy of the student's school records, while
436442 complying with the Family Educational Rights and Privacy Act of 1974 [20 U.S.C.
437443 Section 1232(g)].
438444 2.May provide transportation for an eligible student to and from the participating school
439445 or education provider under the same conditions as the school district of residence is
440-required to provide transportation for other resident students to participating schools.
441-The school district of residence qualifies for state transportation aid for each student
446+required to provide transportation for other resident students to private schools. The
447+school district of residence qualifies for state transportation aid for each student
442448 transported.
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