HB3672 103RD GENERAL ASSEMBLY

LRB103 28627 RJT 55008 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3672

Introduced 2/17/2023, by Rep. Chris Miller

SYNOPSIS AS INTRODUCED:

New Act

Creates the Education Savings Account Act. Provides that, subject to appropriation, the State Board of Education shall develop and implement an education savings account program for eligible pupils. Provides that education savings account payments shall be made available to parents and guardians in the manner authorized under for the payment of qualified educational expenses as provided in this Act. Provides that parents and guardians shall first use education savings account payments for all qualified educational expenses that are tuition and fees for which the parent or guardian is responsible for payment at the pupil's nonpublic school prior to using the education savings account for other qualified educational expenses. Sets forth provisions regarding program eligibility, application requirements, disbursement of funds, testing requirements, and rulemaking. Effective July 1, 2023.

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. Education savings account program.

(a) In this Act:

"Qualified educational expenses" includes tuition and fees at a nonpublic school, textbooks, fees or payments for educational therapies, including tutoring or cognitive skills training, curriculum fees, software, and materials for a course of study for a specific subject matter or grade level, tuition or fees for nonpublic online education programs, tuition for vocational and life skills education approved by the State Board of Education, education materials and services for pupils with disabilities from an accredited provider, including the cost of paraprofessionals and assistants who are trained in accordance with State law, standardized test fees, and advanced placement examinations or examinations related to postsecondary education admission or credentialing.

"Qualified educational expenses" are limited to the items described in subsection (c) and rules adopted by the State Board of Education to implement this Section and does not include transportation costs for the pupil, the cost of food or refreshments consumed by the pupil, the cost of clothing for the pupil, or the cost of disposable materials, including but not limited to paper, notebooks, pencils, pens, and art supplies.

(b) The education savings account program is created. Subject to appropriations, the State Board of Education shall develop and implement the education savings account program for eligible pupils. Education savings account payments shall be made available to parents and guardians in the manner authorized under subsections (c), (d), and (e) for the payment of qualified educational expenses as provided in this Act. Parents and guardians shall first use education savings account payments for all qualified educational expenses that are tuition and fees for which the parent or guardian is responsible for payment at the pupil's nonpublic school prior to using the education savings account for other qualified educational expenses.

(c) Subject to appropriations, for the school budget year beginning July 1, 2023, the following pupils who attend a nonpublic school for that school budget year shall be eligible to receive an education savings account payment:

(1) A resident pupil who is eligible to enroll in kindergarten.

(2) A resident pupil who is eligible to enroll in grades 1 through 12 and was not enrolled in a nonpublic school for the school year immediately preceding the school year for which the education savings account payment is requested.

(3) A resident pupil who is eligible to enroll in grades 1 through 12 and was enrolled in a nonpublic school year immediately preceding the school year for which the education savings account payment is requested if the pupil's household has an annual income less than or equal to 300% of the most recently revised poverty income guidelines published by the United States department of health and human services.

(d) Subject to appropriations, for the school budget year beginning July 1, 2024, the following pupils who attend a nonpublic school for that school budget year shall be eligible to receive an education savings account payment:

(1) A resident pupil who is eligible to enroll in kindergarten.

(2) A resident pupil who is eligible to enroll in grades 1 through 12 and was not enrolled in a nonpublic school for the school year immediately preceding the school year for which the education savings account payment is requested.

(3) A resident pupil who is eligible to enroll in grades 1 through 12 and was enrolled in a nonpublic school for the school year immediately preceding the school year for which the education savings account payment is requested if the pupil's household has an annual income less than or equal to 400% of the most recently revised poverty income guidelines published by the United States department of health and human services.

(4) A resident pupil who received an education savings account payment in the immediately preceding school budget year.

(e) Subject to appropriations, for school budget years beginning on or after July 1, 2025, resident pupils eligible to enroll in kindergarten through 12 who attend a nonpublic school for the applicable school budget year are eligible to receive an education savings account payment.

(f) On or after January 1, but on or before June 30, preceding the school year for which the education savings account payment is requested, the parent or guardian of an eligible pupil may request an education savings account payment by submitting an application to the State Board of Education.

Within 30 days following submission of an application, the State Board of Education or third-party entity shall notify the parent or guardian of each pupil approved for the following school year and specify the amount of the education savings account payment for the pupil, if known at the time of the notice. As soon as practical following the processing of all applications, the State Board of Education or third-party entity shall determine the number of pupils in each school district approved for the school budget year.

(g) Education savings account payments shall only be approved for one school year and applications must be submitted annually for payments in subsequent school years.

(h) For each pupil approved for an education savings account payment, the State Board of Education or third-party entity shall establish an individual account for that pupil in the education savings account fund. The amount of the pupil's education savings account payment shall be deposited into the pupil's individual account on July 15 or 30 days following submission of the application, whichever is later, and such amount shall be immediately available for the payment of qualified educational expenses incurred by the parent or guardian for the pupil during that fiscal year using a payment method authorized by the State Board of Education.

(i) A nonpublic school or other provider of qualified educational expenses that accepts payment from a parent or guardian using funds from a pupil's individual account in the fund shall not refund, rebate, or share any portion of the payment with the parent, guardian, or pupil.

(j) Moneys remaining in a pupil's individual account upon conclusion of the fiscal year shall remain in the pupil's individual account for the payment of qualified educational expenses in future fiscal years during which the pupil participates in the program until the pupil becomes ineligible under the program or until the remaining amounts are transferred to the state general fund under subsection (k).

(k) Moneys remaining in a pupil's individual account when the pupil graduates from high school or turns 20 years of age, whichever occurs first, shall be transferred by the State Board of Education for deposit in the General Revenue Fund.

(l) Each pupil participating in the education savings account program is required to take all applicable State and federally required student assessments and the results of those assessments shall be provided to the pupil's parents or guardians and reported to the State Board of Education.

(m) The State Board of Education may adopt any rules as necessary to implement this Act.

Section 99. Effective date. This Act takes effect July 1, 2023.