The proposed bill establishes the South Dakota educational empowerment accounts, allowing parents of students attending nonpublic elementary or secondary schools to open accounts through the Department of Education. To initiate an account, parents must submit a request form acknowledging that the student will not enroll in a public school or have an alternative instruction notice on file during the school year. Funds in these accounts can only be used for specific educational expenses, including tuition, fees for extracurricular programs, instructional materials, and transportation services. Upon graduation, any remaining funds will be transferred to the state’s general fund.

Additionally, the bill outlines the process for renewing accounts, requiring parents to submit a renewal form annually. It mandates the Department of Education to conduct random audits to ensure compliance and prohibits participation in the program for those convicted of fraud related to the accounts. The bill also clarifies that the establishment of these accounts does not grant the Department of Education or school districts any additional control over nonpublic schools or students receiving alternative instruction.