A bill for an act
relating to education; creating education savings accounts as a learning option for
students; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text beginEDUCATION SAVINGS ACCOUNTS FOR STUDENTS ACT.
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new text begin Subdivision 1. new text end

new text begin Title. new text end

new text begin This act shall be known as the "Education Savings Accounts for
Students Act."
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given them.
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new text begin (b) "Commissioner" means the commissioner of education.
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new text begin (c) "Department" means the Department of Education.
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new text begin (d) "Educational service provider" means an eligible school, tutor, or other person or
organization that provides education-related services and products to participating students.
The eligible student's parent shall not be an educational service provider for that student.
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new text begin (e) "Eligible school" means a nonpublic school 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
Minnesota Statutes, section 123B.445, paragraph (a). An eligible school does not include
a home school under Minnesota Statutes, sections 120A.22, subdivision 4, and 120A.24.
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new text begin (f) "Eligible student" means any student who resides in Minnesota and who attended a
public school or a public charter school during the semester preceding participation in the
program.
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new text begin (g) "Parent" means a resident of this state who is a parent, legal guardian, custodian, or
other person with the authority to act on behalf of the eligible student.
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new text begin (h) "Postsecondary institution" means a college or university accredited by a state,
regional, or national accrediting organization.
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new text begin (i) "Program" means a five-year pilot program to implement education savings accounts
(ESAs).
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new text begin (j) "Tutor" means a person who (1) is certified or licensed by a state, regional, or national
certification or licensing organization to teach, (2) has earned a valid teacher's license, or
(3) has experience teaching at a postsecondary institution.
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new text begin Subd. 3. new text end

new text begin Education savings account (ESA) program. new text end

new text begin (a) An eligible student qualifies
to participate in the program if the student's parent signs an agreement:
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new text begin (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; and
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new text begin (2) to not enroll the participating student in a public school or a public charter school
and to acknowledge as part of the agreement that the participating student has no individual
entitlement to a free appropriate public education from the student's resident school district,
including special education and related services, for as long as the student is participating
in the program.
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new text begin (b) A parent shall use the funds deposited in a participating student's ESA for any of the
following qualifying expenses to educate the student using any of the methods or combination
of methods in this paragraph that meet the requirement in paragraph (a), clause (1):
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new text begin (1) tuition and fees at an eligible school;
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new text begin (2) payment to a tutor;
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new text begin (3) payment for purchase of curriculum, including any textbooks and supplemental
materials required by the curriculum;
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new text begin (4) fees for transportation to and from an educational service provider paid to a
fee-for-service transportation provider;
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new text begin (5) tuition and fees for online learning programs or courses;
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new text begin (6) fees for nationally standardized norm-referenced achievement tests, including alternate
assessments, and fees for advanced placement examinations or similar courses and any
examinations related to college or university admission;
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new text begin (7) educational services or therapies from a licensed or certified practitioner or provider,
including licensed or certified paraprofessionals or educational aides;
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new text begin (8) services provided by a public school, including individual classes and extracurricular
programs;
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new text begin (9) tuition, fees, and textbooks at a postsecondary institution;
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new text begin (10) no more than $300 in annual consumable school supplies necessary for the student's
education; or
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new text begin (11) 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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new text begin (c) Neither a participating student nor anyone on the student's behalf may receive cash
or cash-equivalent items, such as gift cards or store credit, from refunds or rebates from a
provider of services or products in this program. Refunds or rebates shall be credited directly
to the participating student's ESA. The funds in an ESA may only be used for
education-related purposes. Eligible schools, postsecondary institutions, and educational
service providers that serve participating students shall provide parents with a receipt for
all qualifying expenses.
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new text begin (d) Payment for educational services through an ESA shall not preclude parents from
paying for educational services using non-ESA funds.
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new text begin (e) For purposes of continuity of educational attainment, students who enroll in the
program shall remain eligible to receive monthly ESA payments until the participating
student returns to a public school, graduates from high school, or completes the school year
in which the student reaches the age of 21, whichever occurs first.
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new text begin (f) Any funds remaining in a student's ESA upon graduation from high school may be
used to attend or take courses from a postsecondary institution, with qualifying expenses
subject to the applicable conditions in paragraph (b).
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new text begin (g) Upon the participating student's graduation from a postsecondary institution or after
any period of four consecutive years after graduation from high school that the student is
not enrolled in a postsecondary institution, the participating student's ESA shall be closed
and any remaining funds shall be returned to the state general fund.
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new text begin (h) A participating student shall be allowed to return to the resident school district at
any time after enrolling in the program, according to rules adopted by the commissioner
providing for the least disruptive process for doing so. Upon a participating student's return
to the resident school district, the student's ESA shall be closed and any remaining funds
shall be returned to the state general fund.
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new text begin (i) The commissioner shall begin accepting applications for the program on July 1, 2022.
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new text begin Subd. 4. new text end

new text begin Funding. new text end

new text begin (a) The commissioner shall determine the amount to be deposited in
each student's ESA on a first-come, first-served basis. The commissioner shall calculate the
sum of the following to determine the ESA amount:
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new text begin (1) the statewide average general education revenue per adjusted pupil unit; and
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new text begin (2) necessary aid attributable to the student during the student's public school enrollment
for special education services and instruction.
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new text begin (b) The information in paragraph (a) must be provided by the school in the form required
by the commissioner.
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new text begin Subd. 5. new text end

new text begin Administration. new text end

new text begin (a) The commissioner shall create a standard form that parents
of students may submit to establish the student's eligibility for an ESA. The commissioner
shall ensure that the application is readily available to interested families through various
sources, including the department's website, and a copy of procedural safeguards annually
given to parents.
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new text begin (b) The commi