HF 4744

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/07/2022 01:09pm

A bill for an act
relating to education finance; creating an education savings account program;
authorizing a student at an underperforming school to choose another learning
option; appropriating money; amending Minnesota Statutes 2020, section 126C.05,
subdivision 13; proposing coding for new law in Minnesota Statutes, chapter 124D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [124D.0905] EDUCATION SAVINGS ACCOUNTS FOR STUDENTS
ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible nonpublic school" means a nonpublic school where a student can fulfill
compulsory education requirements and that is recognized by the commissioner or accredited
by an accrediting agency recognized by the Minnesota Nonpublic Education Council under
section 123B.445, paragraph (a). An eligible nonpublic school does not include a home
school under sections 120A.22, subdivision 4, and 120A.24.
new text end

new text begin (c) "Eligible student" means any student who resides in Minnesota and attended an
underperforming public school during the semester preceding participation in the education
savings account program. An eligible student, once enrolled in an eligible nonpublic school,
remains eligible in subsequent years, whether or not the student's former public school
remains an underperforming public school.
new text end

new text begin (d) "Individual education savings account" means an education savings account
established on behalf of an eligible student according to subdivision 4.
new text end

new text begin (e) "Participating student" means an eligible student who has enrolled in the education
savings account program.
new text end

new text begin (f) "Postsecondary institution" means an eligible institution under section 124D.09,
subdivision 3, paragraph (a).
new text end

new text begin (g) "Underperforming public school" means a public school operated by a school district
or charter school where fewer than 60 percent of the students are proficient in either reading
or math at that school site as measured by the Minnesota Comprehensive Assessments for
the most recent year for which results are available.
new text end

new text begin Subd. 2. new text end

new text begin Education savings account program created. new text end

new text begin (a) An education savings
account program is created.
new text end

new text begin (b) A student qualifies to participate in the program if:
new text end

new text begin (1) the student is an eligible student under subdivision 1, paragraph (c); and
new text end

new text begin (2) the student's parent applies to the Department of Education in the form and manner
established by the commissioner for an education savings account.
new text end

new text begin (c) A parent must only use the funds deposited in a participating student's education
savings account for tuition and fees at an eligible nonpublic school.
new text end

new text begin (d) An eligible nonpublic school that enrolls a participating student must provide parents
with a receipt for all qualifying expenses for tuition and fees paid by the parent.
new text end

new text begin (e) Upon a participating student's graduation from high school, any funds remaining in
a participating student's individual education savings account may be applied to tuition and
fees charged for courses taken from a postsecondary institution in the school year
immediately following the year of graduation.
new text end

new text begin (f) If, at any time after the creation of a student's individual education savings account,
the participating student re-enrolls in a Minnesota school district or charter school, the
student's individual education savings account must be closed and any remaining funds in
the student's individual education savings account must be returned to the state general fund.
new text end

new text begin Subd. 3. new text end

new text begin Individual education saving account funding. new text end

new text begin (a) The commissioner must
create an individual education savings account for each participating student upon request
of the student's parent.
new text end

new text begin (b) On July 30 of each year, the amount determined under section 126C.05, subdivision
13, is appropriated from the general fund to the commissioner for placement into each
participating student's education savings account. The amount transferred to each account
equals the product of the pupil's grade level weighting for that year and 88 percent of the
basic formula allowance for that year.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must create a standard form that parents
of students may submit to establish the student's eligibility for an individual education
savings account. The commissioner must ensure that the application is readily available to
interested families and post the form on the Department of Education's website.
new text end

new text begin (b) The commissioner must provide parents of participating students with a written
explanation of:
new text end

new text begin (1) the responsibility of a parent for ensuring compulsory instruction for their child;
new text end

new text begin (2) a list of eligible nonpublic schools;
new text end

new text begin (3) the allowable uses of the funds in the participating student's individual education
savings account;
new text end

new text begin (4) the obligation of the parent to document the appropriate expenditure of the account
funds; and
new text end

new text begin (5) the duties of the commissioner to oversee the spending of the funds.
new text end

new text begin (c) The information in paragraph (b) must also be made available on the department's
website.
new text end

new text begin (d) By October 1 of each year, the commissioner shall annually notify all students who
are eligible to participate in the education savings account program of the existence of the
program.
new text end

new text begin (e) Within 30 days of making a payment from the student's individual savings account
to an eligible nonpublic school, a parent must submit documentation of the payment to the
commissioner of education in the form and manner required by the commissioner. If a parent
fails to document the spending, or respond to the commissioner's request for a receipt for
the payment, the commissioner may freeze the student's individual education savings account.
new text end

new text begin Subd. 5. new text end

new text begin Special revenue fund; education savings account. new text end

new text begin (a) An account is established
in the special revenue fund known as the "education savings account."
new text end

new text begin (b) Funds appropriated for the education savings account must be transferred to the
education savings account in the special revenue fund.
new text end

new text begin (c) Money in the account is annually appropriated to the commissioner for transfer into
eligible students' individual education savings accounts.
new text end

new text begin (d) Each school year, five percent of the June 30 balance of the special revenue fund
education savings account from the prior year is appropriated from the account to the
commissioner for costs associated with administering and monitoring the education savings
account program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
first applies to eligible students enrolling in an eligible school for the 2023-2024 school
year.
new text end

Sec. 2.

Minnesota Statutes 2020, section 126C.05, subdivision 13, is amended to read:

Subd. 13.

PSEO new text begin and education savings account new text end pupils.

new text begin (a) new text end The average daily
membership for a pupil participating in the postsecondary enrollment options program
equals the lesser of

(a) 1.00, or

(b) the greater of

(1) .12, or

(2) the ratio of (i) the sum of the number of instructional hours the pupil is enrolled in
the secondary school during quarters, trimesters, or semesters during which the pupil
participates in PSEO, and hours enrolled in the secondary school during the remainder of
the school year, to (ii) the actual number of instructional days in the school year times the
length of day in the school.

new text begin (b) Notwithstanding any law to the contrary, for purposes of determining a school
district's funding, a pupil participating in the education savings account program under
section 124D.0905 must continue to be counted in the enrollment of the resident school
district. The average daily membership for a pupil participating in the education savings
account program is .12.
new text end

new text begin (c) On July 15 of each year, the commissioner of education must calculate the aid amount
and transfer that amount to the special revenue fund education savings account. The aid to
be transferred equals the product of the grade-weighted number of students participating in
the program, .88, and the formula allowance for that year.
new text end

Sec. 3. new text begin APPROPRIATION; DEPARTMENT OF EDUCATION.
new text end

new text begin $....... in fiscal year 2023 is appropriated from the general fund to the commissioner of
education for the development of education savings accounts under Minnesota Statutes,
section 124D.0905.
new text end