Assigned to APPROP                                                                                                                     AS ENACTED

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fourth Legislature, First Regular Session

 

ENACTED

 

FACT SHEET FOR H.B. 2758/S.B. 1545

 

empowerment scholarships; qualified school.

Purpose

Allows students who meet outlined criteria to continue to use Arizona Empowerment Scholarship Account (ESA) monies to pay tuition to a qualifying out-of-state nongovernmental school that meets certain criteria until July 1, 2020.

Background

Statute outlines eligibility requirements for ESAs including if a student resides on an Indian reservation in Arizona and if the student: 1) attended a governmental primary or secondary school full time for at least 100 days of the prior fiscal year and transferred from the school under a contract to participate in an ESA; 2) previously participated in the ESA Program; 3) received or was eligible to receive certain scholarships for students with disabilities or in foster care, as outlined; or 4) has not attended a governmental school but is eligible to enroll in a district or charter school kindergarten program or attended, or is eligible to attend, a preschool program for children with disabilities (A.R.S. § 15-2402).

A student may use ESA monies for required textbooks and tuition or fees at a qualified school. For the purposes of ESAs, a qualified school is a nongovernmental primary or secondary school or preschool for pupils with disabilities that is located in Arizona and does not discriminate on the basis of race, color or national origin (A.R.S. § 15-2401).

The Arizona Department of Education (ADE) may remove any parent or student from ESA eligibility for knowingly failing to comply with contract terms or applicable laws, or knowingly misusing monies. The State Treasurer must suspend the student's ESA and ADE must issue written notification of the suspension and the discontinuation of further transactions or disbursements. If the parent or student does not respond or take corrective action within 10 days, the parent or student is removed (A.R.S. § 15-2403).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.      Allows, until July 1, 2020, a student enrolled in an ESA to use ESA monies to continue to pay tuition at an out-of-state nongovernmental school if all of the following apply:

a)      the student resides on an Indian reservation in Arizona;

b)      the student paid tuition to a nongovernmental primary or secondary school or preschool for pupils with disabilities; and

c)      the school is located in an adjacent state within two miles of the shared border.

2.      Specifies that the student is not required to repay ADE for any monies previously spent for tuition at the qualified out-of-state school.

3.      Deems, until July 1, 2020, a qualified out-of-state school to be a qualified school for ESA purposes, if the school accepted ESA monies in the 2017-2018 school year or the 2018-2019 school year.

4.      Prohibits a student enrolled in an ESA from using ESA monies to pay tuition to a qualified out-of-state school that meets the outlined criteria if the student did not pay tuition to that school in the 2018-2019 school year.

5.      Continues ESA eligibility for a student who paid tuition to a qualified out-of-state school and received a termination letter from ADE and requires the student to be reinstated in an ESA.

6.      Becomes effective on the general effective date, retroactive to July 1, 2017.

House Action                                                           Senate Action

APPROP         5/23/19      DP     11-0-0-0               APPROP         5/22/19      DP     10-0-0

3rd Read          5/24/19                 60-0-0                  3rd Read           5/24/19                 60-0-0

                                 (H.B. 2758 was substituted for S.B. 1545 on

                                 3rd Read)

Signed by Governor 6/11/19

Chapter 276

Prepared by Senate Research

November 21, 2019

LB/gs