HB4670 98TH GENERAL ASSEMBLY

LRB098 16915 NHT 51990 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4670

Introduced , by Rep. Thomas Morrison

SYNOPSIS AS INTRODUCED:

New Act

Creates the Education Savings Account Act. Requires the State Board of Education to create the Education Savings Account Program. Provides that a parent of an eligible student (defined as any elementary or secondary student who was eligible to attend a public school in this State in the preceding semester or is starting school in this State for the first time and who is a member of a household whose total annual income does not exceed an amount equal to 2.5 times the income standard used to qualify for a free or reduced-price lunch under the national free or reduced-price lunch program) shall qualify for the State Board to make a grant to his or her child's Education Savings Account by signing an agreement. Requires the State Board to deposit into an Education Savings Account some or all of the State aid under the State aid formula provisions of the School Code that would otherwise have been provided to the resident school district for the eligible student had the student enrolled in the resident school district. Provides that parents participating in the Program shall agree to use the funds deposited in their eligible students' accounts for certain qualifying expenses to educate the eligible student. Sets forth provisions concerning the calculation of grant amounts and other basic elements of the Program, administration of the Program, accountability standards for participating schools, and the responsibilities of the State Board and resident school districts.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Education Savings Account Act.

Section 5. Definitions.

"Eligible postsecondary institution" means a public community college, a public university, or an accredited private postsecondary institution.

"Eligible student" means any elementary or secondary student who was eligible to attend a public school in this State in the preceding semester or is starting school in this State for the first time and who is a member of a household whose total annual income does not exceed an amount equal to 2.5 times the income standard used to qualify for a free or reduced-price lunch under the national free or reduced-price lunch program established under 42 U.S.C. 1751 et seq.

"Parent" means a resident of this State who is a parent, guardian, custodian, or other person with the authority to act on behalf of the child.

"Participating school" means any private school that provides education to elementary or secondary students and has notified the State Board of its intention to participate in the Program and comply with the Program's requirements.

"Private tutoring" means tutoring services provided by tutors accredited by a regional or national accrediting organization.

"Program" means the Education Savings Account Program created in this Act.

"Resident school district" means the public school district in which the student resides.

"State Board" means the State Board of Education.

Section 10. Basic elements of the Program.

(a) The State Board shall create the Education Savings Account Program. The Program shall begin with the fall semester of the 2015-2016 school year.

(b) A parent of an eligible student shall qualify for the State Board to make a grant to his or her child's Education Savings Account if the parent signs an agreement promising:

(1) to provide an education for the eligible student in at least the subjects of reading, grammar, mathematics, social studies, and science; and

(2) not to enroll their eligible student in a district or charter school.

(c) The State Board shall deposit into an Education Savings Account some or all of the State aid under Section 18-8.05 of the School Code that would otherwise have been provided to the resident school district for the eligible student had the student enrolled in the resident school district, as calculated under subsection (e) of this Section.

(d) Parents participating in the Program shall agree to use the funds deposited in their eligible students' Education Savings Accounts for the following qualifying expenses to educate the eligible student:

(1) Tuition and fees at a participating school.

(2) Textbooks required by a participating school.

(3) Payment to a licensed or accredited tutor.

(4) Payment for the purchase of curriculum.

(5) Tuition or fees for a non-public, online learning program.

(6) Fees for national, norm-referenced examinations, Advanced Placement examinations or similar courses, and any examinations related to college or university admission.

(7) Contribution to the eligible student's qualified tuition program established pursuant to 26 U.S.C. 529.

(8) Educational services for pupils with disabilities from a licensed or accredited practitioner or provider.

(9) Tuition and fees at an eligible postsecondary institution.

(10) Textbooks required for college or university courses.

(11) Fees for account management by private financial management firms approved by the State Board.

(e) Grant amounts to Education Savings Accounts shall be calculated according to the following schedule:

(1) For students from households qualifying for the federal free or reduced-price lunch program, the amount granted to the student's Education Savings Account shall be equal to the dollar amount the resident school district would have received to serve and educate the eligible student from State aid under Section 18-8.05 of the School Code had the student enrolled there.

(2) For students from households with an annual income greater than the amount required to qualify for the federal free or reduced-price lunch program but less than 1.5 times that amount, the amount granted to the student's Education Savings Account shall be equal to 75% of the dollar amount the resident school district would have received to serve and educate the eligible student from State aid under Section 18-8.05 of the School Code had the student enrolled there.

(3) For students from households with an annual income of greater than 1.5 times the amount required to qualify for the federal free or reduced-price lunch program but less than 2 times that amount, the amount granted to the student's Education Savings Account shall be equal to 50% of the dollar amount the resident school district would have received to serve and educate the eligible student from State aid under Section 18-8.05 of the School Code had the student enrolled there.

(4) For students from households with an annual income of greater than 2 times the amount required to qualify for the federal free or reduced-price lunch program but less than 2.5 times that amount, the amount granted to the student's Education Savings Account shall be equal to 25% of the dollar amount the resident school district would have received to serve and educate the eligible student from State aid under Section 18-8.05 of the School Code had the student enrolled there.

(f) A participating school, private tutor, eligible postsecondary institution, or other educational provider may not refund, rebate, or share a student's grant with the student's parent or the student in any manner. The funds in an Education Saving Account may be used only for educational purposes.

(g) Parents shall be allowed to make payments for the costs of educational programs and services not covered by the funds in their accounts.

(h) A participating student shall be counted in the enrollment figures for his or her resident school district for the purposes of calculating State aid to the resident school district under Section 18-8.05 of the School Code. The funds needed for a grant to an Education Savings Account shall be subtracted from the State aid payable to the student's resident school district under Section 18-8.05 of the School Code.

Section 15. Administration of the Program.

(a) The State Board shall approve private financial management firms to manage Education Savings Accounts.

(b) The State Board shall have the authority to conduct or contract for the auditing of accounts and shall, at a minimum, conduct random audits of accounts on an annual basis. The State Board shall have the authority to make any parent of an eligible student ineligible for the Program in the event of substantial misuse of the funds in the account.

(c) The State Board shall have the authority to refer cases of substantial misuse of funds to law enforcement agencies for investigation if evidence of fraudulent use of an account is obtained.

(d) The State Board shall provide parents of participating students with a written explanation of the allowable uses of Education Savings Accounts, the responsibilities of parents, and the duties of the State Board.

(e) The State Board may deduct an amount from the grants to Education Savings Accounts to cover the costs of overseeing the accounts and administering the program, up to a limit of 3%.

(f) The State Board shall establish reasonable fees for private financial management firms participating in the Program based upon market rates.

(g) The State Board shall make payments to eligible students' Education Savings Accounts on a quarterly basis.

Section 20. Accountability standards for participating schools.

(a) To ensure that students are treated fairly and kept safe, all participating schools shall:

(1) comply with all health and safety laws or codes that apply to private schools;

(2) hold a valid occupancy permit if required by their local government;

(3) certify that they comply with the nondiscrimination policies set forth in 42 U.S.C. 1981; and

(4) conduct criminal history records checks on employees. The participating school shall then:

(A) exclude from employment any people not permitted by State law to work in a private school; and

(B) exclude from employment any people that might reasonably pose a threat to the safety of students.

(b) To ensure that funds are spent appropriately, all participating schools shall:

(1) provide parents with a receipt for all qualifying expenses at the school; and

(2) demonstrate their financial viability by showing they can repay any funds that might be provided from Education Savings Accounts, if they are to receive $50,000 or more during the school year, by:

(A) filing with the State Board, prior to the start of the school year, a surety bond payable to this State in an amount equal to the aggregate amount of the funds from Education Savings Accounts expected to be paid during the school year from students admitted at the participating school; or

(B) filing with the State Board, prior to the start of the school year, financial information that demonstrates the school has the ability to pay an aggregate amount equal to the amount of the funds from Education Savings Accounts expected to be paid during the school year to students admitted to the participating school.

(c) In order to allow parents and taxpayers to measure the achievements of the Program:

(1) parents shall ensure that:

(A) each year their eligible student takes either State achievement tests or national, norm-referenced tests that measure learning gains in mathematics and language arts and provide for value-added assessment;

(B) the results of these tests are provided to the State Board or an organization chosen by the State Board on an annual basis;

(C) the student information is reported in a way that would allow the State Board to aggregate data by grade level, gender, family income level, and race; and

(D) the State Board or an organization chosen by the State Board will be informed of the eligible student's graduation from high school; and

(2) the State Board or an organization chosen by the State Board shall:

(A) ensure compliance with all student privacy laws;

(B) collect all test results;

(C) provide the test results, associated learning gains, and graduation rates to the public, via the State Board's Internet website, after the third year of test and graduation-related data collection; the findings shall be aggregated by the students' grade level, gender, family income level, number of years of participation in the Program, and race;

(D) provide graduation rates to the public via the State Board's Internet website after the third year of test and test-related data collection; and

(E) administer an annual parental satisfaction survey that shall ask parents of students receiving Education Savings Accounts to express:

(i) their satisfaction with the Program; and

(ii) their opinions on other topics, items, or issues that the State Board finds would elicit information about the effectiveness of the Program and the number of years their child has participated in the Program.

(d) A participating school is autonomous and not an agent of this State or the federal government, and, therefore:

(1) the State Board or any other State agency may not in any way regulate the educational program of a participating school or education provider that accepts funds from an Education Savings Account;

(2) the creation of the Program does not expand the regulatory authority of this State, its officers, or any school district to impose any additional regulation of private schools or education providers beyond those necessary to enforce the requirements of the Program; and

(3) participating schools and education providers shall be given the maximum freedom to provide for the educational needs of their students without governmental control.

Section 25. Responsibilities of the State Board.

(a) The State Board shall ensure that eligible students and their parents are informed annually of which schools will be participating in the Program. Special attention shall be paid to ensuring that lower-income families are made aware of the program and their options.

(b) The State Board shall create a standard form that parents of eligible students can submit to establish the student's eligibility for the Program. The State Board shall ensure that the application is readily available to interested families through various sources, including the Internet.

(c) The State Board may bar a participating school or education provider from the Program if the State Board establishes that the participating school or education provider has:

(1) routinely failed to comply with the accountability standards established in Section 20 of this Act; or

(2) failed to provide the eligible student with the educational services funded by the Education Savings Account.

(d) If the State Board decides to bar a participating school or education provider from the program, the State Board shall notify eligible students and their parents of this decision as quickly as possible.

(e) The State Board shall adopt rules and procedures as necessary for the administration of the Program.

Section 30. Responsibilities of resident school districts.

(a) The resident school district shall provide a participating school or education provider that has admitted an eligible student under the Program with a complete copy of the student's school records, while complying with the federal Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g).

(b) The resident school district shall provide transportation for an eligible student to and from the participating school or education provider under the same conditions as the resident school district is required to provide transportation for other resident students to and from private schools under the law. The resident school district shall qualify for State transportation aid for each student so transported.