House Bill 339
Summary of 339
|
DESCRIPTION
Creates an Education Savings Account (ESA) program for K-12 nonchartered schools • Provides eligible K-12 students with a state funded ESA to use for nonchartered school expenses TARGETS K-12 nonchartered schools |
PRIMARY SPONSOR(S)
Rep. Gary Click COMMITTEE House Primary and Secondary Education STATUS Introduced: November 27, 2023 Passed House: Passed Senate: HEARINGS Watch Hearings | Read Testimony Sponsor Testimony BILL General Info | Bill Text | Analysis Amendments |
What does House Bill 339 do?
House Bill 339 would create a state funded Education Savings Account (ESA) program for K-12 nonchartered, nonpublic schools. Eligible students would receive an ESA, funded by state operating dollars, to pay for nonchartered, nonpublic school expenses.
Nonchartered Educational Savings Account Program
Application for an Education Savings Account (ESA)
Requires the Treasurer of State, by March 1, 2025, to develop an application procedure for the program. Under that procedure, the Treasurer must open an application period for a school year on March 1 immediately prior to the start of that year. The application must require a parent to:
Families must reapply to have an ESA established for a subsequent school year. The Treasurer must notify parents of students of the renewal process, the deadline for renewal, and that the failure to renew in a timely manner may result in a temporary suspension of access to funds until the ESA is renewed. The Treasurer also must provide support to ensure a smooth transition from school year to school year for renewing parents and students.
As practicable, the Treasurer must establish an ESA prior to the start of the school year for which it is sought prior to the start of that year if a parent submits an application prior to the start of that year.
ESA Amount
The ESA award amount for a school year will be 90% of the statewide average base cost per pupil for that year.
Funding of ESAs
Requires the Department of Education and Workforce (DEW) to use state operating funding to meet the program’s financial obligations regarding ESAs in a manner similar to how other state scholarship programs are funded under current law.
Prescribes a “nonchartered educational savings account unit” that consists of all students for whom an ESA is established for a fiscal year. It requires DEW to compute the sum of all students in the unit multiplied by their ESA amounts. DEW must pay the computed amount using state operating funds and transfer those funds to each student’s ESA. DEW must distribute funds in one annual payment. To the extent practicable, the Department must make that payment for an ESA established prior to the school year before the first day of that school year.
Use of ESA Funds
Disbursal of Funds
Treasurer must disburse funds from a student’s ESA by either of the following methods as selected by the student's guardian :
Any refund or other repayment of funds by a participating school or other educational provider must be returned to the ESA, cannot be given to the student or guardian.
Treasurer may conduct random audits to verify the student's guardian is using funds in an ESA for the prescribed purposes. If there is a misuse of funds, the Treasurer may take any action the Treasurer determines appropriate, including suspension or termination of a student’s participating in the program.
Disposition of Remaining ESA funds
Disenrollment Midyear
If a student with an ESA established for a particular school year disenrolls from the student’s participating school and does not enroll in a different participating school during that school year, the Treasurer must transfer the balance of any funds in the student’s ESA, including any prorated refund from a school, to DEW.
DEW must distribute those funds to:
Student applies for an ESA in subsequent year
If the student with an ESA established for a particular school year applies to have an ESA established for the next school year, the Treasurer must, on June 30, transfer to the student’s new ESA the balance of any funds in the student’s old ESA.
Student does not apply for an ESA in subsequent year
If the student with an ESA established for a particular school year does not apply for a new account for the next school year, the Treasurer must, on June 30, transfer the balance of any funds in the student’s old ESA to DEW. DEW must then distribute the funds to the school district, community school, or STEM school in which the student enrolls in the subsequent year.
If the student has graduated high school or does not enroll in a district or school, or receive a home education, DEW must distribute the funds to the student’s resident school district.
Participating Nonpublic Schools
Notification of Intent to Participate
Nonchartered nonpublic school must notify the Treasurer by a deadline established by the Treasurer for each school year it elects to participate.
Schools must :
Oversight of School Compliance
Treasurer must remove a schools that do not comply with the ESA requirements.
Treasurer must provide DEW with a list of participating schools.
Annually, DEW must do all of the following regarding each participating school:
If the Department’s report demonstrates that a school is not compliant, the Treasurer must take any action the Treasurer determines appropriate against the school.
Treasurer may conduct random audits to verify that participating schools are using funds in accordance with the bill’s requirements. If the Treasurer determines a misuse of funds, the Treasurer must take appropriate action, including suspension or termination of a school’s participation in the program.
Rights of Participating Schools
Complaint System
DEW must establish a system for students, guardians, participating schools, or any other individual to submit a complaint about an alleged violation of the program’s requirements. DEW must investigate each complaint it receives. During the investigation, DEW must provide updates to, and respond to questions from, both the subject of the complaint and the party who submitted the complaint. DEW must complete each investigation promptly.
Upon completion of an investigation, DEW must submit to the party who submitted a complaint, the subject of the complaint, and the Treasurer a report regarding the investigation’s findings, including whether the program’s requirements were violated. If DEW's report indicates the program’s requirements were violated, the Treasurer must determine a resolution to the complaint and require corrective action to be taken, including remediation plans and other potential consequences for the subject of the complaint.
- Program would begin in the 2025-2026 school year
- Open for eligible students enrolling in participating nonchartered nonpublic schools
- Ohio Treasurer of State must administer the program with the assistance of the Department of Education and Workforce
- Treasurer of State must establish an education savings account for participating students to purchase educational goods and services, including tuition at participating nonchartered nonpublic schools. The Department must fund those accounts in a manner similar to how other state scholarship programs are funded under current law.
Application for an Education Savings Account (ESA)
Requires the Treasurer of State, by March 1, 2025, to develop an application procedure for the program. Under that procedure, the Treasurer must open an application period for a school year on March 1 immediately prior to the start of that year. The application must require a parent to:
- Provide the student’s and parent’s names and address
- Provide documentation verifying the student’s enrollment and attendance at a participating school
- Provide the student’s participating school’s tuition and fee schedule
- If the parent is applying to renew an ESA, provide the student’s standardized assessment scores for the prior school year – though the student’s school may submit them on behalf of the parent as a matter of convenience
- Affirm the parent will maintain records and related documentation regarding the educational expenses on which the parent spent funds from the ESA, including any receipts for tuition, textbooks, and curriculum materials
- Affirm the parent will not enroll the student in a school district, community school, STEM school, or chartered nonpublic school while the student is participating in the program
- Affirm the parent has not and will not claim a tax credit for nonchartered nonpublic school tuition for the taxable year ending in the school year for which the ESA is sought
- Affirm the parent will not use funds in an ESA for any purpose other than approved uses listed in statute
- Provide other information determined necessary by the Treasurer
Families must reapply to have an ESA established for a subsequent school year. The Treasurer must notify parents of students of the renewal process, the deadline for renewal, and that the failure to renew in a timely manner may result in a temporary suspension of access to funds until the ESA is renewed. The Treasurer also must provide support to ensure a smooth transition from school year to school year for renewing parents and students.
As practicable, the Treasurer must establish an ESA prior to the start of the school year for which it is sought prior to the start of that year if a parent submits an application prior to the start of that year.
ESA Amount
The ESA award amount for a school year will be 90% of the statewide average base cost per pupil for that year.
Funding of ESAs
Requires the Department of Education and Workforce (DEW) to use state operating funding to meet the program’s financial obligations regarding ESAs in a manner similar to how other state scholarship programs are funded under current law.
Prescribes a “nonchartered educational savings account unit” that consists of all students for whom an ESA is established for a fiscal year. It requires DEW to compute the sum of all students in the unit multiplied by their ESA amounts. DEW must pay the computed amount using state operating funds and transfer those funds to each student’s ESA. DEW must distribute funds in one annual payment. To the extent practicable, the Department must make that payment for an ESA established prior to the school year before the first day of that school year.
Use of ESA Funds
- Tuition and fees at a participating school
- Tutoring or intervention services by an individual or educational facility, provided those services are not provided by an immediate family member
- Educational services, including occupational, behavioral, physical, speech-language, and audiology therapies;
- Curriculum, textbooks, instructional materials, and supplies
- Fees for after-school and summer education programs
- The bill states that it does not prohibit the parent of a student for whom an ESA is establish from making payments for the costs of educational goods or services not covered by funds in the ESA. Though, the bill does prohibit a parent from depositing funds in the ESA
Disbursal of Funds
Treasurer must disburse funds from a student’s ESA by either of the following methods as selected by the student's guardian :
- Directly to a participating school
- Reimburse the student’s guardian for school expenses (must provide documentation for expenses)
Any refund or other repayment of funds by a participating school or other educational provider must be returned to the ESA, cannot be given to the student or guardian.
Treasurer may conduct random audits to verify the student's guardian is using funds in an ESA for the prescribed purposes. If there is a misuse of funds, the Treasurer may take any action the Treasurer determines appropriate, including suspension or termination of a student’s participating in the program.
Disposition of Remaining ESA funds
Disenrollment Midyear
If a student with an ESA established for a particular school year disenrolls from the student’s participating school and does not enroll in a different participating school during that school year, the Treasurer must transfer the balance of any funds in the student’s ESA, including any prorated refund from a school, to DEW.
DEW must distribute those funds to:
- student’s new school -- if the student enrolls in a school district, community school, or STEM school in that year
- student’s resident school district -- if the student enrolls in a chartered nonpublic school or begins a home education in that year
Student applies for an ESA in subsequent year
If the student with an ESA established for a particular school year applies to have an ESA established for the next school year, the Treasurer must, on June 30, transfer to the student’s new ESA the balance of any funds in the student’s old ESA.
Student does not apply for an ESA in subsequent year
If the student with an ESA established for a particular school year does not apply for a new account for the next school year, the Treasurer must, on June 30, transfer the balance of any funds in the student’s old ESA to DEW. DEW must then distribute the funds to the school district, community school, or STEM school in which the student enrolls in the subsequent year.
If the student has graduated high school or does not enroll in a district or school, or receive a home education, DEW must distribute the funds to the student’s resident school district.
Participating Nonpublic Schools
Notification of Intent to Participate
Nonchartered nonpublic school must notify the Treasurer by a deadline established by the Treasurer for each school year it elects to participate.
Schools must :
- Administer a standardized assessment for each ESA student, (test is selected by student’s guardian from a list approved by DEW)
- Maintain records and related documentation regarding the educational expenses using ESA funds, including receipts for tuition, textbooks, and curricula
- Maintain a physical location in Ohio, each student must have regular and direct contact with teachers
- Notify the Treasurer and DEW of any change in the school’s name, school director, mailing address, or physical location within 15 days of the change
Oversight of School Compliance
Treasurer must remove a schools that do not comply with the ESA requirements.
Treasurer must provide DEW with a list of participating schools.
Annually, DEW must do all of the following regarding each participating school:
- Verify the school has submitted a copy of the report it sent to student's guardian certifying that the school meets the minimum education standards for nonchartered nonpublic schools
- Request a report from the board of health of the city or general health district that certifies where the school’s physical location is located, including any inspection conducted by the board of health of that location
- Request from the State Fire Marshal a copy of any report of any fire inspection of the school’s physical location
- Prepare and submit a report to the Treasurer certifying the school is compliant with the minimum education standards and health, fire, and safety laws
If the Department’s report demonstrates that a school is not compliant, the Treasurer must take any action the Treasurer determines appropriate against the school.
Treasurer may conduct random audits to verify that participating schools are using funds in accordance with the bill’s requirements. If the Treasurer determines a misuse of funds, the Treasurer must take appropriate action, including suspension or termination of a school’s participation in the program.
Rights of Participating Schools
- Treasurer cannot regulate the educational or instructional program of a school
- Treasurer cannot impose additional requirements on schools beyond those prescribed under the bill
- Schools that elect to participate must be given maximum freedom to provide for the educational needs of their students
Complaint System
DEW must establish a system for students, guardians, participating schools, or any other individual to submit a complaint about an alleged violation of the program’s requirements. DEW must investigate each complaint it receives. During the investigation, DEW must provide updates to, and respond to questions from, both the subject of the complaint and the party who submitted the complaint. DEW must complete each investigation promptly.
Upon completion of an investigation, DEW must submit to the party who submitted a complaint, the subject of the complaint, and the Treasurer a report regarding the investigation’s findings, including whether the program’s requirements were violated. If DEW's report indicates the program’s requirements were violated, the Treasurer must determine a resolution to the complaint and require corrective action to be taken, including remediation plans and other potential consequences for the subject of the complaint.
Testimony
**Do NOT submit testimony until the appropriate hearing is announced**
HOW TO SUBMIT TESTIMONY
STEP 1:
PREPARE YOUR TESTIMONY
Read tips for preparing and submitting testimony HERE
STEP 2:
EMAIL TESTIMONY DOCUMENTS TO COMMITTEE
Email a PDF of your testimony & this completed Witness Slip to OHRPrimary&[email protected]
**IMPORTANT**
Do NOT send your testimony until the appropriate hearing is announced.
You must submit your testimony 24 hours ahead of the scheduled hearing.
Indicate in your email that you are submitting testimony and ask for a confirmation of receipt.
All testimony will be uploaded HERE
STEP 3:
ARRIVE EARLY FOR IN-PERSON TESTIMONY
Arrive at least 1 hour prior to the scheduled hearing
There is convenient parking in the Statehouse Parking Garage