Existing law establishes the Nevada Educational Choice Scholarship Program, whereby a scholarship organization may provide a grant of money to allow certain pupils to attend a private school. (NRS 388D.250-388D.280) Section 2 of this bill establishes the Nevada Education Savings Account Program, whereby, under certain circumstances, an account-granting organization may establish an education savings account for a child.
Existing law establishes a credit against the payroll tax paid by certain businesses equal to an amount approved by the Department of Taxation and which must not exceed the amount of any donation of money which is made by a taxpayer to a scholarship organization that provides grants on behalf of certain pupils. (NRS 363A.130, 363B.110) Sections 28 and 30 of this bill establish similar tax credits for a donation of money which is made by a taxpayer to an account-granting organization that provides grants of money to education savings accounts.
Section 12 of this bill: (1) requires an account-granting organization to apply to the Department of Education for a certificate to participate in the Program; and (2) sets forth certain application requirements. Section 12 further provides that, if the application is approved, an account-granting organization may: (1) solicit and accept donations from certain taxpayers; and (2) provide grants to education savings accounts pursuant to the provisions of the Program.
Section 21 of this bill sets forth certain requirements for an account-granting organization to apply annually to renew its certificate issued by the Department.
Section 13 of this bill: (1) requires each account-granting organization to implement a system for administering education savings accounts; and (2) authorizes each account-granting organization to contract with a private financial institution for the administration of education savings accounts.
Section 14 of this bill requires that an account-granting organization ensure that at least 90 percent of the money received pursuant to sections 28 and 30 is allocated to education savings accounts.
Section 15 of this bill imposes certain duties on an account-granting organization.
Section 16 of this bill: (1) authorizes the parent of any child required to attend public school to apply to an account-granting organization for an education savings account; and (2) sets forth certain requirements for an agreement between a parent and account-granting organization in order to open an education savings account for a child.
Section 17 of this bill requires the account-granting organization to deposit in a child's education savings account an amount that is equal to the base per pupil funding plus any weighted funding that the child would be entitled to if the child were enrolled in a public school.
Section 18 of this bill requires an account-granting organization to establish a process for approving an education service provider to receive money from an education savings account.
Section 19 of this bill sets forth certain allowable uses of money deposited in a child's education savings account.
Section 20 of this bill authorizes unused money remaining in a child's education savings account to be used within a certain period of time for any postsecondary education.
Section 22 of this bill requires the Department of Education to maintain on its Internet website a list of account-granting organizations to which a parent may apply for an education savings account pursuant to the Program.
Section 23 of this bill authorizes the Department to audit or investigate an account-granting organization to ensure compliance with the provisions of sections 2-26 of this bill and any regulations adopted pursuant thereto.
Section 24 requires each account-granting organization to submit an annual report of its activities to the Department.
Section 25 provides that no obligation or liability may be incurred by the Department, a school district or any public school in this State by the provisions of sections 2-26.
Section 26 requires the Department to adopt any regulations necessary to carry out the provisions of the Program.
Existing law requires each child between the ages of 6 and 18 years to attend a public school of the State, attend a private school or be homeschooled. (NRS 392.040, 392.070) Sections 16 and 27 of this bill provide an exemption to this requirement for a child who receives an education savings account pursuant to the Program.
Sections 3-11 define certain terms relating to the Program.