Illinois General Assembly - Full Text of HB1573
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Full Text of HB1573  103rd General Assembly

HB1573 103RD GENERAL ASSEMBLY

  
  

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1573

 

Introduced 1/31/2023, by Rep. Adam M. Niemerg, Randy E. Frese, Martin McLaughlin and Chris Miller

 

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.


LRB103 26046 RJT 52401 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB1573LRB103 26046 RJT 52401 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Education Savings Account Act.
 
6    Section 5. Definitions.
7    "Eligible postsecondary institution" means a public
8community college, a public university, or an accredited
9private postsecondary institution.
10    "Eligible student" means any elementary or secondary
11student who was eligible to attend a public school in this
12State in the preceding semester or is starting school in this
13State for the first time and who is a member of a household
14whose total annual income does not exceed an amount equal to
152.5 times the income standard used to qualify for a free or
16reduced-price lunch under the national free or reduced-price
17lunch program established under 42 U.S.C. 1751 et seq.
18    "Parent" means a resident of this State who is a parent,
19guardian, custodian, or other person with the authority to act
20on behalf of the child.
21    "Participating school" means any private school that
22provides education to elementary or secondary students and has
23notified the State Board of its intention to participate in

 

 

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1the Program and comply with the Program's requirements.
2    "Private tutoring" means tutoring services provided by
3tutors accredited by a regional or national accrediting
4organization.
5    "Program" means the Education Savings Account Program
6created in this Act.
7    "Resident school district" means the public school
8district in which the student resides.
9    "State Board" means the State Board of Education.
 
10    Section 10. Basic elements of the Program.
11    (a) The State Board shall create the Education Savings
12Account Program. The Program shall begin with the fall
13semester of the 2024-2025 school year.
14    (b) A parent of an eligible student shall qualify for the
15State Board to make a grant to his or her child's Education
16Savings Account if the parent signs an agreement promising:
17        (1) to provide an education for the eligible student
18    in at least the subjects of reading, grammar, mathematics,
19    social studies, and science; and
20        (2) not to enroll their eligible student in a district
21    or charter school.
22    (c) The State Board shall deposit into an Education
23Savings Account some or all of the State aid under Section
2418-8.15 of the School Code that would otherwise have been
25provided to the resident school district for the eligible

 

 

HB1573- 3 -LRB103 26046 RJT 52401 b

1student had the student enrolled in the resident school
2district, as calculated under subsection (e) of this Section.
3    (d) Parents participating in the Program shall agree to
4use the funds deposited in their eligible students' Education
5Savings Accounts for the following qualifying expenses to
6educate the eligible student:
7        (1) Tuition and fees at a participating school.
8        (2) Textbooks required by a participating school.
9        (3) Payment to a licensed or accredited tutor.
10        (4) Payment for the purchase of curriculum.
11        (5) Tuition or fees for a non-public, online learning
12    program.
13        (6) Fees for national, norm-referenced examinations,
14    Advanced Placement examinations or similar courses, and
15    any examinations related to college or university
16    admission.
17        (7) Contribution to the eligible student's qualified
18    tuition program established pursuant to 26 U.S.C. 529.
19        (8) Educational services for pupils with disabilities
20    from a licensed or accredited practitioner or provider.
21        (9) Tuition and fees at an eligible postsecondary
22    institution.
23        (10) Textbooks required for college or university
24    courses.
25        (11) Fees for account management by private financial
26    management firms approved by the State Board.

 

 

HB1573- 4 -LRB103 26046 RJT 52401 b

1    (e) Grant amounts to Education Savings Accounts shall be
2calculated according to the following schedule:
3        (1) For students from households qualifying for the
4    federal free or reduced-price lunch program, the amount
5    granted to the student's Education Savings Account shall
6    be equal to the dollar amount the resident school district
7    would have received to serve and educate the eligible
8    student from State aid under Section 18-8.15 of the School
9    Code had the student enrolled there.
10        (2) For students from households with an annual income
11    greater than the amount required to qualify for the
12    federal free or reduced-price lunch program but less than
13    1.5 times that amount, the amount granted to the student's
14    Education Savings Account shall be equal to 75% of the
15    dollar amount the resident school district would have
16    received to serve and educate the eligible student from
17    State aid under Section 18-8.15 of the School Code had the
18    student enrolled there.
19        (3) For students from households with an annual income
20    of greater than 1.5 times the amount required to qualify
21    for the federal free or reduced-price lunch program but
22    less than 2 times that amount, the amount granted to the
23    student's Education Savings Account shall be equal to 50%
24    of the dollar amount the resident school district would
25    have received to serve and educate the eligible student
26    from State aid under Section 18-8.15 of the School Code

 

 

HB1573- 5 -LRB103 26046 RJT 52401 b

1    had the student enrolled there.
2        (4) For students from households with an annual income
3    of greater than 2 times the amount required to qualify for
4    the federal free or reduced-price lunch program but less
5    than 2.5 times that amount, the amount granted to the
6    student's Education Savings Account shall be equal to 25%
7    of the dollar amount the resident school district would
8    have received to serve and educate the eligible student
9    from State aid under Section 18-8.15 of the School Code
10    had the student enrolled there.
11    (f) A participating school, private tutor, eligible
12postsecondary institution, or other educational provider may
13not refund, rebate, or share a student's grant with the
14student's parent or the student in any manner. The funds in an
15Education Saving Account may be used only for educational
16purposes.
17    (g) Parents shall be allowed to make payments for the
18costs of educational programs and services not covered by the
19funds in their accounts.
20    (h) A participating student shall be counted in the
21enrollment figures for his or her resident school district for
22the purposes of calculating State aid to the resident school
23district under Section 18-8.15 of the School Code. The funds
24needed for a grant to an Education Savings Account shall be
25subtracted from the State aid payable to the student's
26resident school district under Section 18-8.15 of the School

 

 

HB1573- 6 -LRB103 26046 RJT 52401 b

1Code.
 
2    Section 15. Administration of the Program.
3    (a) The State Board shall approve private financial
4management firms to manage Education Savings Accounts.
5    (b) The State Board shall have the authority to conduct or
6contract for the auditing of accounts and shall, at a minimum,
7conduct random audits of accounts on an annual basis. The
8State Board shall have the authority to make any parent of an
9eligible student ineligible for the Program in the event of
10substantial misuse of the funds in the account.
11    (c) The State Board shall have the authority to refer
12cases of substantial misuse of funds to law enforcement
13agencies for investigation if evidence of fraudulent use of an
14account is obtained.
15    (d) The State Board shall provide parents of participating
16students with a written explanation of the allowable uses of
17Education Savings Accounts, the responsibilities of parents,
18and the duties of the State Board.
19    (e) The State Board may deduct an amount from the grants to
20Education Savings Accounts to cover the costs of overseeing
21the accounts and administering the program, up to a limit of
223%.
23    (f) The State Board shall establish reasonable fees for
24private financial management firms participating in the
25Program based upon market rates.

 

 

HB1573- 7 -LRB103 26046 RJT 52401 b

1    (g) The State Board shall make payments to eligible
2students' Education Savings Accounts on a quarterly basis.
 
3    Section 20. Accountability standards for participating
4schools.
5    (a) To ensure that students are treated fairly and kept
6safe, all participating schools shall:
7        (1) comply with all health and safety laws or codes
8    that apply to private schools;
9        (2) hold a valid occupancy permit if required by their
10    local government;
11        (3) certify that they comply with the
12    nondiscrimination policies set forth in 42 U.S.C. 1981;
13    and
14        (4) conduct criminal history records checks on
15    employees. The participating school shall then:
16            (A) exclude from employment any people not
17        permitted by State law to work in a private school; and
18            (B) exclude from employment any people that might
19        reasonably pose a threat to the safety of students.
20    (b) To ensure that funds are spent appropriately, all
21participating schools shall:
22        (1) provide parents with a receipt for all qualifying
23    expenses at the school; and
24        (2) demonstrate their financial viability by showing
25    they can repay any funds that might be provided from

 

 

HB1573- 8 -LRB103 26046 RJT 52401 b

1    Education Savings Accounts, if they are to receive $50,000
2    or more during the school year, by:
3            (A) filing with the State Board, prior to the
4        start of the school year, a surety bond payable to this
5        State in an amount equal to the aggregate amount of the
6        funds from Education Savings Accounts expected to be
7        paid during the school year from students admitted at
8        the participating school; or
9            (B) filing with the State Board, prior to the
10        start of the school year, financial information that
11        demonstrates the school has the ability to pay an
12        aggregate amount equal to the amount of the funds from
13        Education Savings Accounts expected to be paid during
14        the school year to students admitted to the
15        participating school.
16    (c) In order to allow parents and taxpayers to measure the
17achievements of the Program:
18        (1) parents shall ensure that:
19            (A) each year their eligible student takes either
20        State achievement tests or national, norm-referenced
21        tests that measure learning gains in mathematics and
22        language arts and provide for value-added assessment;
23            (B) the results of these tests are provided to the
24        State Board or an organization chosen by the State
25        Board on an annual basis;
26            (C) the student information is reported in a way

 

 

HB1573- 9 -LRB103 26046 RJT 52401 b

1        that would allow the State Board to aggregate data by
2        grade level, gender, family income level, and race;
3        and
4            (D) the State Board or an organization chosen by
5        the State Board will be informed of the eligible
6        student's graduation from high school; and
7        (2) the State Board or an organization chosen by the
8    State Board shall:
9            (A) ensure compliance with all student privacy
10        laws;
11            (B) collect all test results;
12            (C) provide the test results, associated learning
13        gains, and graduation rates to the public, via the
14        State Board's Internet website, after the third year
15        of test and graduation-related data collection; the
16        findings shall be aggregated by the students' grade
17        level, gender, family income level, number of years of
18        participation in the Program, and race;
19            (D) provide graduation rates to the public via the
20        State Board's Internet website after the third year of
21        test and test-related data collection; and
22            (E) administer an annual parental satisfaction
23        survey that shall ask parents of students receiving
24        Education Savings Accounts to express:
25                (i) their satisfaction with the Program; and
26                (ii) their opinions on other topics, items, or

 

 

HB1573- 10 -LRB103 26046 RJT 52401 b

1            issues that the State Board finds would elicit
2            information about the effectiveness of the Program
3            and the number of years their child has
4            participated in the Program.
5    (d) A participating school is autonomous and not an agent
6of this State or the federal government, and, therefore:
7        (1) the State Board or any other State agency may not
8    in any way regulate the educational program of a
9    participating school or education provider that accepts
10    funds from an Education Savings Account;
11        (2) the creation of the Program does not expand the
12    regulatory authority of this State, its officers, or any
13    school district to impose any additional regulation of
14    private schools or education providers beyond those
15    necessary to enforce the requirements of the Program; and
16        (3) participating schools and education providers
17    shall be given the maximum freedom to provide for the
18    educational needs of their students without governmental
19    control.
 
20    Section 25. Responsibilities of the State Board.
21    (a) The State Board shall ensure that eligible students
22and their parents are informed annually of which schools will
23be participating in the Program. Special attention shall be
24paid to ensuring that lower-income families are made aware of
25the program and their options.

 

 

HB1573- 11 -LRB103 26046 RJT 52401 b

1    (b) The State Board shall create a standard form that
2parents of eligible students can submit to establish the
3student's eligibility for the Program. The State Board shall
4ensure that the application is readily available to interested
5families through various sources, including the Internet.
6    (c) The State Board may bar a participating school or
7education provider from the Program if the State Board
8establishes that the participating school or education
9provider has:
10        (1) routinely failed to comply with the accountability
11    standards established in Section 20 of this Act; or
12        (2) failed to provide the eligible student with the
13    educational services funded by the Education Savings
14    Account.
15    (d) If the State Board decides to bar a participating
16school or education provider from the program, the State Board
17shall notify eligible students and their parents of this
18decision as quickly as possible.
19    (e) The State Board shall adopt rules and procedures as
20necessary for the administration of the Program.
 
21    Section 30. Responsibilities of resident school districts.
22    (a) The resident school district shall provide a
23participating school or education provider that has admitted
24an eligible student under the Program with a complete copy of
25the student's school records, while complying with the federal

 

 

HB1573- 12 -LRB103 26046 RJT 52401 b

1Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
21232g).
3    (b) The resident school district shall provide
4transportation for an eligible student to and from the
5participating school or education provider under the same
6conditions as the resident school district is required to
7provide transportation for other resident students to and from
8private schools under the law. The resident school district
9shall qualify for State transportation aid for each student so
10transported.