SUMMARY:  LC 33 5874  LC 33 5918S  LC 33 5979S   LC 33 6121S

This bill is the "Education Savings Acount Act."  It creates a system in which parents can apply for a program in which the state funding attributed to the student is placed in an education savings account (ESA) and the parent can spend the money on any of the qualified education expenses allowed in the bill.

There is a cap on the number of participants the first two years:  0.5% of the state's students the first year and 1% the second.  The third year on there is no cap on the number of students who may participate. 

SB 92 was introduced as a twin to this bill.

PROVISIONS:

This program would be open to any student who is a Georgia resident who was enrolled in and was reported in the preceding October and March FTE counts.

Parents of students in the program must sign an agreement to:

• to provide an education in at least the subjects of English and Language Arts, math, social studies, and science
• acknowledge that funds will stop if student returns to public school except for contracted services
• to use the funds in the education savings account only for the qualifying educational expenses for the eligible student 

Qualified education expenses are:

• tuition and fees at a participating school  (defined as an accredited private school)
• textbooks required by a participating school
• private tutoring
• curriculum materials
• tuition or fees for nonpublic online learning program
• contracted educational services by a public school or school system including courses 
• fees for nationally norm-referenced examinations, advanced placement or similar examinations, and any examinations related to college or university admission
• contribution to the student's 529 account
• educational services for participating students with disabilities from a licensed or accredited practitioner or provider including but not limited to:
  • applied behavior analysis services
  • speech language pathology services
  • occupational therapy services
  • physical therapy services    
• tuition and fees at postsecondary institution
• textbooks required for postsecondary courses 

The program would be administered by the Office of Student Achievement.

• OSA shall deposit into an education savings ccount an amount equivalent to that calculated for the student under QBE less the statewide average local five mill share per student less the administrative costs withheld
• OSA shall qualify private financial management firms to manage the accounts and shall establish reasonable fees for the services
• OSA can conduct or retain an independent CPA or other contractor to conduct an audit of any account at any time and shall at a minimum conduct random audits of accounts on an annual basis 
• OSA may withhold up to 3% of a student's funds for administration costs 
• OSA shall provide parents with a written explanation of the allowable uses of the funds, the responsibilities of the parents, and the duties of OSA
• OSA shall make payments to eligible students' accounts on a quarterly basis
• Shall have the authority to refer suspected misuse to law enforcement agencies 

Unused funds shall roll over to the following year.  If the account has been inactive for two years, the funds shall be returned to the state and the account closed.  Upon high school graduation, an amount not to exceed the total of the prior year's deposits shall roll over and may be used for postsecondary education.

Private financial management firms would manage the ESAs.

All participating schools must comply with laws applicable to private schools, comply with antidiscrimination provisions, demonstrate fiscal soundness as described, conduct criminal background checks on teachers, and exclude from employment any individuals who would not be permitted to work in a public school as a result of the background check.

Participating schools must administer to participating students annually a nationally norm-referenced assessment or a state required, nationally norm-referenced assessment that measures learning gains and provides for value added assessments in grades and subjects that are administered to students in public schools in this state. The school must annually provide the results of any of these assessments administered.  Parents of home study students must report these results to OSA.

Parents must inform OSA of the the student's graduation from high school. 

OSA shall provide aggregate test scores and associated learning gains beginning three years after the program is established.  Findings shall be aggregated by the students' grade level, gender, family income level, number of years of participation in the program, and race.

OSA shall make graduation rates available to the public via a state website beginning three years after the start of the program.

OSA shall adopt rules and regulations necessary to implement the program. 

EFFECTIVE DATE:

July 1, 2015