A bill for an act
relating to education; establishing education savings accounts; requiring rules;
proposing coding for new law in Minnesota Statutes, chapter 126C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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This section may be cited as the "Education Savings Accounts for
Minnesota Students Act" (ESA-4-MSA).
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(a) For the purposes of this section, the following terms have the
meanings given.
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(b) "Commissioner" means the commissioner of the Department of Revenue.
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(c) "Curriculum" means programs and written plans for a particular content area or grade
level that provides students with learning experiences that lead to expected knowledge,
skills, and career and college readiness.
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(d) "Department" means the Department of Revenue or an organization with which the
commissioner contracts to implement any portion of this section.
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(e) "Education savings account" or "ESA" means the account to which funds are allocated
by the commissioner to the parent to pay for qualifying expenses to educate the ESA student
pursuant to the requirements of this section.
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(f) "Educational service provider" means an eligible school, tutor, or other person or
organization that provides education-related services and products to participating students.
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(g) "Eligible school" means:
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(1) a nonpublic school, including nonpublic online learning programs, where a student
can fulfill compulsory education requirements and that is recognized by the commissioner
or accredited by an accrediting agency recognized by the Minnesota Nonpublic Education
Council under section 123B.445, paragraph (a); or
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(2) a public high school, community college, or community and technical college that
offers one or more individual courses to eligible students in person or online.
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A child receiving instruction in a home school is eligible for an educational savings account
and may use it for eligible expenses, but the child's parent may not be reimbursed for the
time a parent spends providing instruction to the child.
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(h) "Eligible student" means any student who:
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(1) resides in Minnesota; and
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(2) is a member of a household whose total annual income does not exceed an amount
equal to four times the income standard used to qualify for reduced-price meals under the
National School Lunch Act, United States Code, title 42, section 1751, et seq.
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(i) "Eligible student participation maximum" means the maximum number of eligible
students receiving an ESA. In the first year, the eligible student participation maximum
shall be equal to five percent of the prior year's public school average daily membership.
For each subsequent year, the eligible student participation maximum shall increase by an
additional three percent of the prior year's statewide public school average daily membership.
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(j) "Eligible student selection priority" means the commissioner's acceptance of eligible
students in the ESA program based on the following order:
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(1) a student entering kindergarten;
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(2) a student who attended a public school, including a charter school, for the full school
year preceding anticipated participation in the ESA program;
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(3) a student whose sibling is participating in the ESA program; and
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(4) other eligible students.
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(k) "ESA program" means the program to implement education savings accounts.
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(l) "ESA student" means an eligible student who is participating in the ESA program.
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(m) "Parent" means a resident of Minnesota who is a parent, legal guardian, or other
person having legal custody of an eligible student under age 18. For an eligible student age
18 or over, "parent" means the eligible student unless a guardian or conservator has been
appointed, in which case it means the guardian or conservator.
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(n) "Postsecondary institution" means a college or university, including a career or
technical school, accredited by a state, regional, or national accrediting organization.
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(o) "Qualifying expense" means any expense used to educate an eligible student,
including:
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(1) tuition and fees at an eligible school;
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(2) payment to a tutor;
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(3) payment for purchase of curriculum, including any textbook and supplemental
materials required by the curriculum;
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(4) fees for transportation to and from an educational service provider paid to a
fee-for-service transportation provider;
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(5) tuition and fees for online learning programs or courses;
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(6) textbooks and fees for nationally standardized norm-referenced achievement tests
or for alternative assessments, including an assessment for a child with a disability as defined
in section 125A.02 or an English learner as defined in section 124D.59;
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(7) textbooks and fees for advanced placement examinations or similar courses and any
examination related to college or university admission;
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(8) educational services or therapies, including from paraprofessionals or educational
aides;
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(9) services provided by a public school, including extracurricular programs and
individual classes paid for as a tuition payment and not as an enrolled student in the public
school or as part of a shared time program under section 126C.19;
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(10) tuition, fees, and textbooks at a postsecondary institution;
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(11) no more than $400 in annual consumable school supplies, including school uniforms
necessary for the student's education;
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(12) computer hardware and software and other technological devices if an eligible
school, tutor, educational service provider, or licensed medical professional verifies in
writing that these items are necessary for the student to meet annual, measurable goals;
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(13) tuition and fees for summer education programs and after-school education programs,
but not after-school child care; or
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(14) any other expense approved by the commissioner.
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(p) "Tutor" means a person who:
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(1) is certified or licensed by a state, regional, or national certification or licensing
organization to teach;
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(2) has a valid teacher's license; or
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(3) has experience teaching at a postsecondary institution.
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(a) An eligible student may participate
in the ESA program if the student's parent agrees:
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(1) to arrange for the provision of organized, appropriate educational services with
measurable goals to the participating student in at least the subjects of reading, writing,
mathematics, social studies, and science;
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(2) not to enroll the participating student in a public school, including a charter school,
for as long as the student participates in the program;
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(3) to use the funds deposited in a participating student's ESA only for qualifying expenses
to educate the student using any of the methods or combination of methods in this paragraph
that meet the requirement in clause (1); and
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(4) not to receive cash or cash-equivalent items, such as gift cards or store credit, from
refunds or rebates from a provider of services or product