2010 -- H 7844

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LC01890

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2010

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A N A C T

RELATING TO EDUCATION

     Introduced By: Representative Jon D. Brien

     Date Introduced: March 02, 2010

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 16 of the General Laws entitled "EDUCATION" is hereby amended

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by adding thereto the following chapter:

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     CHAPTER 91

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THE RHODE ISLAND PARENTAL CHOICE SCHOLARSHIP PROGRAM ACT

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     16-91-1. Short title. -- This act shall be known and may be cited as “The Rhode Island

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     Parental Choice Scholarship Program Act.”

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     16-91-2. Definitions. -- As used in this chapter, the following words and phrases shall

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have the following meanings, unless the context clearly indicates otherwise:

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     (1) “Program” means the Parental Choice Scholarship Program created in this chapter.

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     (2) “Eligible student” means a student who:

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     (i) Is a member of a household whose total annual income does not exceed an amount

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equal to two and one-half (2.5) times the income standard used to qualify for a reduced price

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lunch under the national free or reduced price lunch program established under

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     42 USC Section 1751 et seq.;

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     (ii) Was eligible to attend a public school in the preceding semester or is starting school

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in Rhode Island for the first time; and

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     (iii) Resides in the State of Rhode Island while receiving a scholarship under this chapter.

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     (3) “Parent” includes a guardian, custodian or other person with the authority to act on

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behalf of the child.

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     (4) “Department” means the state department of elementary and secondary education.

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     (5) “Resident school district” means the public school district in which the student

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resides.

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     (6) “Participating school” means either a public school outside of the resident school

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district, or any nonpublic school that provides education to elementary and/or secondary students

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and has notified the department of its intention to participate in the program and comply with the

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program’s requirements.

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     16-91-3. Basic requirements of the parental choice scholarship program. -- (a) Any

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eligible student may qualify for an annual scholarship to attend a participating school.

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     (b) Eligible students may attend a participating school until their graduation from high

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school or their twenty-first (21st) birthday, whichever comes first.

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     (c) Scholarship amounts shall be calculated according to the following schedule:

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     (1) For students from households qualifying for the federal free or reduced-price lunch

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program, the scholarship amount shall be equal to the lesser of:

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     (i) The participating school’s annual cost per pupil, including both operational and capital

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facility costs; or

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     (ii) The dollar amount the resident school district would have received to serve and

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educate the eligible student from state and local sources had the student enrolled there.

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     (2) For students from households with an annual income greater than the amount required

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to qualify for the free or reduced lunch program but less than one and one-half (1.5) times that

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amount, the scholarship amount shall be equal to the lesser of:

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     (i) Seventy-five percent (75%) of the dollar amount the resident school district would

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have received to serve and educate the eligible student from state and local sources had the

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student enrolled there; or

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     (ii) The participating school’s annual cost per pupil, including both operational and

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capital facility costs.

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     (3) For students from households with an annual income of greater than one and one-half

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(1.5) times the amount required to qualify for the free or reduced lunch program but less than two

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(2) times that amount, the scholarship amount shall be equal to the lesser of:

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     (i) Fifty percent (50%) of the dollar amount the resident school district would have

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received to serve and educate the eligible student from state and local sources had the student

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enrolled there; or

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     (ii) The participating school’s annual cost per pupil, including both operational and

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capital facility costs.

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     (4) For students from households with an annual income of greater than two (2) times the

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amount required to qualify for the free or reduced lunch program but less than two and one-half

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(2.5) times that amount, the scholarship amount shall be equal to the lesser of:

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     (i) Twenty-five percent (25%) of the dollar amount the resident school district would

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have received to serve and educate the eligible student from state and local sources had the

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student enrolled there; or

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     (ii) The participating school’s annual cost per-pupil, including both operational and

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capital facility costs.

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     (5) Provided, that the provisions of subdivisions (c)(1) through (c)(4) herein

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notwithstanding, in no event shall the amount of the scholarship exceed the amount of either five

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thousand five hundred dollars ($5,500) or one-half (1/2) the per-pupil cost per year to educate the

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student in the resident school district.

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     (d) The scholarship is the entitlement of the eligible student under the supervision of the

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student’s parent and not that of any school.

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     (e) A participating school may not refund, rebate or share a student’s scholarship with a

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parent or the student in any manner. A student’s scholarship may only be used for educational

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purposes.

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     (f)(1) Eligible students who qualify for the federal free or reduced lunch program may

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attend any participating school in the parental choice scholarship program at no charge to the

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student. That is, the scholarship under this chapter shall cover the cost of all tuition and

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mandatory fees for such students. The participating school may not charge the resident school

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district any amounts in excess of the scholarship amount provided for such students.

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     (2) Participating schools may charge households the difference between the scholarship

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amount and all tuition and mandatory fees for eligible students from households with incomes

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that exceed the annual income required to qualify for free or reduced lunch program.

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     (g) Participating schools that have more eligible students applying than spaces available

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shall fill the available spaces by a random selection process, except that participating schools may

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give preference to siblings of enrolled students and previously enrolled scholarship students under

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this chapter.

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     (h) If a student is denied admission to a participating school because it has too few

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available spaces, the eligible student may transfer his/her scholarship to a participating school that

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has spaces available.

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     (i) Eligible students shall be counted in the enrollment figures for their resident school

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district for the purposes of calculating state aid to the resident school district. The funds needed

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for a scholarship shall be subtracted from the state school aid payable to the student’s resident

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school district. Any aid the school district would have received for the student in excess of the

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funds needed for a scholarship will be kept by the state.

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     (j) The department shall adopt rules and regulations consistent with this chapter

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regarding:

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     (1) The eligibility and participation of non-public schools, including timelines that will

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maximize student and public and non-public school participation;

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     (2) The calculation and distribution of scholarships to eligible students; and

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     (3) The application and approval procedures for scholarships for eligible students and

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participating schools.

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     16-91-4. Accountability standards for participating schools. -- (a) Administrative

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Accountability Standards. To ensure that students are treated fairly and kept safe, all participating

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schools shall:

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     (1) Comply with all health and safety laws or codes that apply to non-public schools;

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     (2) Hold a valid occupancy permit if required by their municipality;

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     (3) Certify that they will not discriminate in admissions on the basis of race, color,

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national origin, religion or disability; and

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     (4) Comply with all state laws that apply to non-public schools regarding criminal

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background checks for employees and exclude from employment any people not permitted by

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state law to work in a non-public school.

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     (b) Financial accountability standards. To ensure that public funds are spent

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appropriately, all participating non-public schools shall:

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     (1) Demonstrate their financial accountability by:

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     (i) Submitting a financial information report for the school that complies with uniform

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financial accounting standards established by the department and conducted by a certified public

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accountant; and

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     (ii) Having the auditor certify that the report is free of material misstatements and fairly

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represents the costs per pupil under this chapter. The auditor’s report shall be limited in scope to

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those records that are necessary for the department to make payments to participating schools on

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behalf of parents for scholarships.

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     (2) Demonstrate their financial viability by showing they can repay any funds that might

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be owed the state, if they are to receive fifty thousand dollars ($50,000) or more during the school

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year, by:

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     (i) Filing with the department prior to the start of the school year a surety bond payable to

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the state in an amount equal to the aggregate amount of the parental choice scholarships expected

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to be paid during the school year to students admitted at the participating school; or

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     (ii) Filing with the department prior to the start of the school year financial information

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that demonstrates the school has the ability to pay an aggregate amount equal to the amount of the

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parental choice scholarships expected to be paid during the school year to students admitted at the

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participating school.

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     (c) Academic accountability standards. To ensure that schools provide academic

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accountability to parents of students in the program, all participating schools shall regularly report

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to the parent on the student’s progress.

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     (d) Participating school autonomy. A participating school is autonomous and not an agent

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of the state or federal government and therefore:

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     (1) The department or any other state agency may not in any way regulate the educational

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program of a participating school that accepts a parental choice scholarship; and

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     (2) The creation of this program does not expand the regulatory authority of the state, its

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officers or any school district to impose any additional regulation of non-public schools beyond

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those necessary to enforce the requirements of the program; and

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     (3) Participating schools shall be given the maximum freedom to provide for the

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educational needs of their students without governmental control.

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     16-91-5. Responsibilities of the department of elementary and secondary education.

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-- (a) The department shall ensure that eligible students and their parents are informed annually of

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which schools will be participating in the parental choice scholarship program. Special attention

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shall be paid to ensuring that lower income families are made aware of the program and their

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options.

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     (b) The department shall create a standard application that students interested in the

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parental choice scholarship program can use to submit to participating schools to establish their

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eligibility and apply for admissions. Participating schools may require supplemental information

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from applicants. The department shall ensure that the application is readily available to interested

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families through various sources, including the Internet.

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     (c) The department may bar or disqualify a school from participation in the parental

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choice scholarship program if the department determines that the participating school has:

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     (1) Intentionally and substantially misrepresented information required under this section

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16-91-4 and/or otherwise required under this chapter; or

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     (2) Routinely failed to comply with at least three (3) of the accountability standards

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established in section 16-91-4; or

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     (3) Failed to comply with subsection 16-91-3(e); or

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     (4) Failed to refund to the state any scholarship overpayments in a timely manner.

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     (d) If the department makes a decision to bar or otherwise disqualify a participating

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school from the program, it shall notify the participating school of its intention to bar or

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disqualify that school from participation. The participating school shall be entitled to notice and

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an opportunity to be heard on the issue of it’s barring or disqualification. If after such notice and

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hearing the department determines that the participating school should be barred or disqualified,

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the department shall notify the school of its decision in writing. A decision to bar or disqualify a

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participating school shall be deemed to be a final order in a contested case entitled to judicial

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review under the provisions of chapter 42-35 (“Administrative Procedures”). Provided, that

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during the pendency of an administrative appeal, pursuant to chapter 42-35, a decision to bar or

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disqualify a participating school from participation in the program shall not be stayed pending the

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resolution of any such appeal.

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     (e) If the department reaches a decision to bar a participating school from the program as

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set forth in subsection (d) herein, it shall notify eligible students and their parents of this decision

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as quickly as possible.

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     (f) The department shall adopt rules and regulations necessary for the administration of

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the parental choice scholarship program. Such rules also include a process for providing notice

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and a hearing to any participating school which the department seeks to bar or disqualify from

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participating in the program.

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     16-91-6. Responsibilities of resident school districts. -- (a) The resident school district

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shall provide to the participating school that has admitted an eligible student under this program

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with a complete copy of the student’s school records while complying with the family educational

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rights and privacy act of 1974 [20 USC section 1232 (g)].

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     (b) The resident school district shall provide transportation for the eligible student to and

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from the participating school under the same conditions as the resident school district is required

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to provide transportation for other resident students to non-public schools as per current law. The

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resident school district will qualify for state transportation aid for each student so transported.

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     16-91-7. Effective date. -- The parental choice scholarship program will be in effect

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beginning with the fall semester of the next school year starting on or after August 1, 2010.

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     SECTION 2. This act shall take effect upon passage.

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LC01890

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION

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     This act would create a scholarship program for children from low and middle-income

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families to attend the public or non-public elementary or secondary school of their choice. The

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program would involve the use of scholarship moneys as an entitlement to the eligible student

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and not that of any school. This act is patterned after model legislation suggested by the

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American legislative exchange council and the alliance for school choice.

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     This act would take effect upon passage.

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LC01890

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