The proposed "Education Savings Accounts for Minnesota Students Act" (ESA-4-MSA) aims to establish education savings accounts (ESAs) for eligible students in Minnesota, allowing parents to allocate funds for qualifying educational expenses such as tuition, tutoring, and educational materials. The bill defines key terms related to the program and outlines the responsibilities of the commissioner of the Department of Revenue in administering the ESA program. It includes guidelines for the application process, prioritizing students based on specific criteria, and mandates the commissioner to inform eligible families about the program and create a standard application form. Funding for the ESAs will be based on the state's adjusted per pupil formula allowance, with provisions for administrative costs.

To enhance fraud prevention, the bill requires the commissioner to create a publicly accessible list of blocked and unblocked MCC codes for the ESA program and introduces measures to remove fraudulent educational service providers. It establishes an anonymous fraud reporting service and mandates certain providers to post a surety bond. The commissioner is also responsible for notifying parents of nonqualifying expenses and allowing them to justify or repay the amount, with potential consequences for noncompliance. Additionally, a Parent Review and Advisory Panel will be formed to assist in evaluating education service providers and expenditures. The bill includes provisions for legal proceedings related to the act, ensuring that the state must prove the law's necessity in challenges and allowing parents to intervene in lawsuits defending the ESA program's legality. The provisions of the bill will take effect immediately upon final enactment.