Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0253 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0253
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7	7	LC000374
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO EDUCATION -- EDUCATION FREEDOM ACCOUNT PROG RAM
16	16	Introduced By: Senator E Morgan
17	17	Date Introduced: February 13, 2025
18	18	Referred To: Senate Finance
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Title 16 of the General Laws entitled "EDUCATION" is hereby amended by 1
23	23	adding thereto the following chapter: 2
24	24	CHAPTER 117 3
25	25	EDUCATION FREEDOM ACCOUNT PROGRAM 4
26	26	16-117-1. Short title. 5
27	27	This chapter shall be known and may be cited as the "Education Freedom Account 6
28	28	Program." 7
29	29	16-117-2. Legislative purpose. 8
30	30	It is the purpose of this chapter to offer qualified students an opportunity to utilize state 9
31	31	education funds to pay for alternative learning experiences, by allowing parents to direct their 10
32	32	child's state education funding to private school, courses, materials and educational programs of 11
33	33	their choice, instead of attending elementary or secondary public school. The education freedom 12
34	34	account program shall be administered by the children's scholarship fund of Rhode Island. 13
35	35	16-117-3. Definitions. 14
36	36	As used in this chapter, the following words and terms shall have the following meanings: 15
37	37	(1) "Adequate education funds" means the per-student base amount of educational funding 16
38	38	calculated by the Rhode Island department of education (RIDE) and as may be determined by the 17
39	39	general assembly on an annual basis. 18
40	40	(2) "The children's scholarship fund of Rhode Island" or "the children's scholarship fund" 19
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44	44	or "CSF" means the organization approved under this chapter to administer and implement the 1
45	45	educational freedom account (EFA) 2
46	46	(3) "Commissioner" means the Rhode Island commissioner of education. 3
47	47	(4) "Curriculum" means the lessons and academic content taught in a specific course, 4
48	48	program, or grade level. 5
49	49	(5) "Department" or "RIDE" means the Rhode Island department of education. 6
50	50	(6) "Education freedom account" or "EFA" means the account to which funds are allocated 7
51	51	by the children's scholarship fund and paid to the parent of an EFA student or directly to an 8
52	52	education service provider in order to pay for qualifying education expenses under this chapter. 9
53	53	(7) "Education service provider" means a person or organization that receives payments 10
54	54	from education freedom accounts to provide educational goods and services to EFA students. 11
55	55	(8) "EFA student" means an eligible student who is participating in the education freedom 12
56	56	account (EFA) program. 13
57	57	(9) "Eligible student" means a resident of this state who is eligible to enroll in a public 14
58	58	elementary or secondary school and whose annual household income at the time the student's parent 15
59	59	applies for the program is less than or equal to two hundred fifty percent (250%) of the federal 16
60	60	poverty guidelines as updated annually in the Federal Register by the United States Department of 17
61	61	Health and Human Services pursuant to 42 U.S.C. § 9902(2). No income threshold need be met in 18
62	62	subsequent years, provided the student otherwise qualifies. 19
63	63	(10) "Full-time" means more than fifty percent (50%) of instructional time. 20
64	64	(11) "Parent" means a biological or adoptive parent, legal guardian, custodian, or other 21
65	65	person with legal authority to act on behalf of an EFA student. 22
66	66	(12) "Program" means the education freedom account (EFA) program established in this 23
67	67	chapter. 24
68	68	(13) "Remote” or “hybrid" means any public school that is not providing instruction in-25
69	69	person where the student or the educator are both not physically present in the traditional classroom 26
70	70	due to full-time or part-time classroom or school closure. 27
71	71	16-117-4. Education freedom account program. 28
72	72	(a) The commissioner shall transfer to the CSF the per pupil annual education fund amount 29
73	73	calculated by RIDE and determined by the general assembly. 30
74	74	(b) Parents of an EFA student shall use the funds deposited in their student's EFA only for 31
75	75	the following qualifying expenses to educate the EFA student as follows: 32
76	76	(1) Tuition and fees at an elementary or secondary private school; 33
77	77	(2) Tuition and fees for non-public online learning programs; 34
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81	81	(3) Tutoring services provided by an individual or a tutoring facility; 1
82	82	(4) Services contracted for and provided by a district public school, chartered public school, 2
83	83	public academy, or independent school, including, but not limited to, individual classes and 3
84	84	curricular activities and programs; 4
85	85	(5) Textbooks, curriculum, or other instructional materials, including, but not limited to, 5
86	86	any supplemental materials or associated online instruction required by either a curriculum or an 6
87	87	education service provider; 7
88	88	(6) Computer hardware, Internet connectivity, or other technological services and devices, 8
89	89	that are primarily used to help meet an EFA student's educational needs; 9
90	90	(7) Educational software and its associated applications; 10
91	91	(8) School uniforms; 11
92	92	(9) Fees for nationally standardized assessments, advanced placement examinations, 12
93	93	examinations related to college or university admission or awarding of credits and tuition and fees 13
94	94	for preparatory courses for such exams; 14
95	95	(10) Tuition and fees for summer education programs and specialized education programs; 15
96	96	(11) Tuition, fees, instructional materials, and examination fees at a career or technical 16
97	97	school; 17
98	98	(12) Educational services and therapies, including, but not limited to, occupational, 18
99	99	behavioral, physical, speech-language, and audiology therapies; 19
100	100	(13) Fees for transportation paid to a fee-for-service transportation provider for the student 20
101	101	to travel to and from an education service provider; and 21
102	102	(14) Any other educational expense approved by the CSF. 22
103	103	(c) EFA funds shall not be refunded, rebated, or shared with a parent or EFA student in any 23
104	104	manner; provided however, that the funds shall be credited directly to the student's EFA. 24
105	105	(d) Parents may make payments for the costs of educational goods and services not covered 25
106	106	by the funds in their student's EFA. However, personal deposits into an EFA shall not be permitted. 26
107	107	(e) Funds deposited in an EFA shall not constitute taxable income to the parent or the EFA 27
108	108	student. 28
109	109	(f) An EFA shall remain in force, and any unused funds shall roll over from quarter-to-29
110	110	quarter and from year-to-year until the parent withdraws the EFA student from the EFA program 30
111	111	or until the EFA student graduates from high school, unless the EFA is closed because of a 31
112	112	substantial misuse of funds. Upon permanent closure of an EFA, any unused funds shall be 32
113	113	deposited in the respective city's or town’s educational account. 33
114	114	(g) Nothing in this chapter shall be construed to require that an EFA student must be 34
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118	118	enrolled, full-time or part-time, in either an elementary or secondary private school or an 1
119	119	elementary or secondary nonpublic online school. 2
120	120	16-117-5. Application for an education freedom account. 3
121	121	(a) A parent may apply to the CSF to establish an EFA for an eligible student. The CSF 4
122	122	shall accept and approve applications for the fall and spring semesters each year and shall establish 5
123	123	procedures for approving applications in an expeditious manner. 6
124	124	(b) The CSF shall create a standard form that parents can submit to establish their student's 7
125	125	eligibility for the EFA program and shall ensure that the application is publicly available and may 8
126	126	be submitted through various sources, electronically and in a hard-copy format. 9
127	127	(c) The CSF shall approve an application for an EFA provided: 10
128	128	(1) The parent submits an application for an EFA in accordance with application 11
129	129	procedures established by the CSF; 12
130	130	(2) The student on whose behalf the parent is applying is an eligible student; 13
131	131	(3) Funds are available for the EFA; and 14
132	132	(4) The parent signs an agreement with the CSF: 15
133	133	(i) To provide an education for the eligible student in the core knowledge domains that 16
134	134	include science, mathematics, language, government, history, health, reading, writing, spelling, the 17
135	135	history of the constitutions of Rhode Island and the United States, and an exposure to and 18
136	136	appreciation of art and music; 19
137	137	(ii) Not to enroll the eligible student as a full-time student in the public school of their 20
138	138	residential district while participating in the EFA program; 21
139	139	(iii) To provide an annual record of educational attainment by: 22
140	140	(A) Having the student take a nationally-standardized, norm-referenced achievement test 23
141	141	and to provide the results to the CSF by the end of each school year that the CSF shall make 24
142	142	available to the department as aggregate scores; 25
143	143	(B) Having the student take a statewide student assessment test; or 26
144	144	(C) Maintaining a portfolio including, but not limited to, a log which designates by title the 27
145	145	reading materials used; samples of writings, worksheets, workbooks, or creative materials used or 28
146	146	developed by the student. The parent shall have a certified teacher or a teacher currently teaching 29
147	147	in a nonpublic school, who is selected by the parent, evaluate the student's educational progress 30
148	148	upon review of a portfolio and discussion with the parent or student; 31
149	149	(iv) To use the funds in the EFA only for qualifying expenses to educate the eligible student 32
150	150	as established by the EFA program; and 33
151	151	(v) To comply with the rules and requirements of the EFA program. 34
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155	155	(d) The signed agreement between the parent and the CSF shall satisfy the compulsory 1
156	156	school attendance requirements of the state. 2
157	157	(e) The CSF shall annually renew a student's EFA provided the funds are available. 3
158	158	(f) Upon notice to the CSF, an EFA student may choose to stop receiving EFA funding and 4
159	159	enroll full-time in a public school. 5
160	160	(1) Enrolling as a full-time student in the public school of their residential district shall 6
161	161	result in the immediate suspension of payment of additional funds into the student's EFA. However, 7
162	162	an EFA that has been open for at least one full school year shall remain open and active for the 8
163	163	parent to make qualifying expenditures to educate the student from funds remaining in the EFA. 9
164	164	When no funds remain in the student's EFA, the CSF may close the EFA. 10
165	165	(2) If an eligible student decides to return to the EFA program, payments into the student's 11
166	166	existing EFA may resume if the EFA is still open and active. A new EFA may be established if the 12
167	167	student's EFA was closed. 13
168	168	16-117-6. Authority and responsibilities of the children's scholarship fund. 14
169	169	The CSF shall have the following additional duties, obligations, and authority: 15
170	170	(1) The CSF shall maintain an updated list of education service providers and shall ensure 16
171	171	that the list is publicly available through various sources, electronically and in a hard-copy format. 17
172	172	(2) The CSF shall provide parents with a written explanation of the allowable uses of EFA 18
173	173	funds, the responsibilities of parents, the duties of the CSF, and the role of any financial 19
174	174	management firms that the CSF may contract with to administer any aspect of the EFA program. 20
175	175	(3) The CSF shall ensure that parents of students with disabilities receive notice that 21
176	176	participation in the EFA program is a placement pursuant to 20 U.S.C. § 1412, Individuals with 22
177	177	Disabilities Education Act (IDEA), along with an explanation of the rights that parentally placed 23
178	178	students possess under IDEA and any applicable state laws. 24
179	179	(4) The CSF shall, in cooperation with the department, determine eligibility for 25
180	180	differentiated aid subject to any applicable state and federal laws. 26
181	181	(5) The CSF may withhold from deposits or deduct from EFAs an amount to cover the 27
182	182	costs of administering the EFA program, up to a maximum of ten percent (10%) annually. 28
183	183	(6) The CSF shall implement a commercially viable system of payment for services from 29
184	184	EFAs to education service providers by electronic or online funds transfer. 30
185	185	(i) The CSF shall not adopt a system that relies exclusively on requiring parents to be 31
186	186	reimbursed for out-of-pocket expenses, but rather shall provide maximum flexibility to parents by 32
187	187	facilitating direct payments to education service providers. The CSF may pre-approve requests for 33
188	188	reimbursements for qualifying expenses, including expenses pursuant to §16-117-4(b), but shall 34
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192	192	not disperse funds to parents without receipt that such pre-approved purchase has been made. 1
193	193	(ii) The CSF may contract with a private institution or organization to develop a payment 2
194	194	system. 3
195	195	(7) The CSF may also seek to implement a commercially viable system for parents to 4
196	196	publicly rate, review, and share information about education service providers, preferably as part 5
197	197	of the same system that facilitates the electronic or online funds transfers. 6
198	198	(8) If an education service provider requires partial payment of tuition or fees prior to the 7
199	199	start of the academic year to reserve space for an EFA student admitted to the education service 8
200	200	provider, such partial payment may be paid by the CSF, if funds are available, prior to the start of 9
201	201	the school year in which the EFA is awarded and deducted in an equitable manner from subsequent 10
202	202	quarterly EFA deposits to ensure adequate funds remain available throughout the school year. 11
203	203	However, if an EFA student decides not to use the education service provider, the partial reservation 12
204	204	payment shall be returned to the CSF by such education service provider and credited to the 13
205	205	student's EFA. 14
206	206	(9) The CSF shall continue making deposits into a student's EFA until: 15
207	207	(i) The CSF determines that the EFA student is no longer an eligible student; 16
208	208	(ii) The CSF determines that there was substantial misuse of the funds in the EFA; 17
209	209	(iii) The parent or EFA student withdraws from the EFA program; 18
210	210	(iv) The EFA student enrolls full-time in the public school of their residential district; or 19
211	211	(v) The EFA student graduates from high school. 20
212	212	(10) The CSF may conduct or contract for the auditing of individual EFAs, and shall at a 21
213	213	minimum conduct random audits of EFAs on an annual basis. 22
214	214	(11) The CSF may make any parent or EFA student ineligible for the EFA program in the 23
215	215	event of intentional and substantial misuse of EFA funds. 24
216	216	(i) The CSF shall create procedures to ensure that a fair process exists to determine whether 25
217	217	an intentional and substantial misuse of EFA funds has occurred. 26
218	218	(ii) If an EFA student is free from personal misconduct, that student shall be eligible for an 27
219	219	EFA in the future if placed with a new guardian or other person with the legal authority to act on 28
220	220	behalf of the student. 29
221	221	(iii) The CSF may refer suspected cases of intentional and substantial misuse of EFA funds 30
222	222	to the attorney general for investigation if evidence of fraudulent use of EFA funds is obtained. 31
223	223	(iv) A parent or EFA student may appeal the CSF's decision to deny eligibility for the EFA 32
224	224	program to the department. 33
225	225	(12) The CSF may bar an education service provider from accepting payments from EFAs 34
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229	229	if the CSF determines that the education service provider has: 1
230	230	(i) Intentionally and substantially misrepresented information or failed to refund any 2
231	231	overpayments in a timely manner; or 3
232	232	(ii) Routinely failed to provide students with promised educational goods or services. 4
233	233	(13) The CSF shall create procedures to ensure that a fair process exists to determine 5
234	234	whether an education service provider may be barred from receiving payments from EFAs. 6
235	235	(i) If the CSF bars an education service provider from receiving payments from EFAs, it 7
236	236	shall notify parents and EFA students of its decision as soon as possible. 8
237	237	(ii) Education service providers may appeal the CSF's decision to bar them from receiving 9
238	238	payments from the EFA to the department. 10
239	239	(14) The CSF may accept gifts and grants from any source to cover administrative costs, 11
240	240	to inform the public about the EFA program, or to fund additional EFAs. 12
241	241	(15) The department shall adopt rules and regulations that are necessary for the 13
242	242	administration of this chapter. 14
243	243	(16) The CSF shall adopt policies or procedures that are necessary for the administration 15
244	244	of this chapter, including, but not limited to: 16
245	245	(i) Establishing or contracting for the establishment of an online anonymous fraud 17
246	246	reporting service; 18
247	247	(ii) Establishing an anonymous telephone number for fraud reporting; 19
248	248	(iii) Requiring a surety bond for education service providers receiving more than one 20
249	249	hundred thousand dollars ($100,000) in EFA funds; 21
250	250	(iv) Refunding payments from education service providers to EFAs; and 22
251	251	(v) Ensuring appropriate use and rigorous oversight of all funds expended under this 23
252	252	program. 24
253	253	(17) The CSF shall not exclude, discriminate against, or otherwise disadvantage any 25
254	254	education provider with respect to programs or services under this chapter based in whole or in part 26
255	255	on the provider's religious character or affiliation, including religiously based or mission-based 27
256	256	policies or practices. 28
257	257	SECTION 2. This act shall take effect upon passage. 29
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259	259	LC000374
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264	264	EXPLANATION
265	265	BY THE LEGISLATIVE COUNCIL
266	266	OF
267	267	A N A C T
268	268	RELATING TO EDUCATION -- EDUCATION FREEDOM ACCOUNT PRO GRAM
269	269	***
270	270	This act would establish a new program where the per pupil funding, calculated annually 1
271	271	by the department of education (RIDE), may be transferred into a newly created educational 2
272	272	funding account (EFA) administered by the children's scholarship fund if a student qualifies, to pay 3
273	273	for certain educational expenses such as, tuition and fees at a private school, tutoring, textbooks, 4
274	274	computers, among other items. 5
275	275	This act would take effect upon passage. 6
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