2013 -- H 6131

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LC02558

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO EDUCATION -- PARENTAL CHOICE SCHOLARSHIP PROGRAM ACT

     Introduced By: Representatives E Coderre, and Corvese

     Date Introduced: May 16, 2013

     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 100

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PARENTAL CHOICE SCHOLARSHIP PROGRAM ACT

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     16-100-1. Short title. -- This act shall be known and may be cited as the "Parental

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Choice Scholarship Program Act."

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     16-100-2. Definitions. -- The following words and phrases when used in this chapter

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

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     (1) "Adequate funding" means the amount of money defined as adequate funding per

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student, as determined by applicable law for the academic year that the scholarship is utilized.

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     (2) "Department" means the Rhode Island department of education. The general assembly

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reserves the right to transfer oversight of this program from the department of education to

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another body, to be chosen by the general assembly, if it determines that program success would

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be better facilitated by removal from the department of education.

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     (3) "Eligible student" means any elementary or secondary student who was eligible to

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attend a public school in Rhode Island in the preceding semester or is starting school in Rhode

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Island for the first time.

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     (4) "Home school" means a school provided by a parent or legal guardian for his or her

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own child.

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     (5) "Parent" means a biological or adoptive parent, guardian, custodian, or other person

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with the authority to act on behalf of the child.

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      (6) "Parent choice scholarship award" means the amount of money that follows the child

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to the school which the parent selects for their education.

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     (7) "Participating school" means either a public school outside of the resident school

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district, a charter school, magnet school, alternative school or a private school that provides

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education to elementary and/or secondary students and has notified the department of its intention

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to participate in the program and comply with the program requirements.

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     (8) "Program" means the parental choice scholarship program created in this chapter.

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     (9) "Resident school district" means the public school district in which the student

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resides.

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     16-100-3. Elements of program. -- (a) Any parent of an eligible student shall qualify for

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a scholarship for their child to enroll in and attend a participating school.

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     (b) An eligible student means a student who:

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

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equal to three (3) times the income standard used to qualify for a reduced price lunch under the

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national free or reduced price lunch program established under 42 USC Section 1751 et seq.

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     (c) 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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     (d) A participating school that has 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.

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

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available spaces, the parent of that eligible student may transfer his or her scholarship to a

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participating school that has spaces available.

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     (f) An eligible student may attend a participating school until his or her graduation from

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

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     (g) Eligible students that enroll in a participating school may, at the parent's discretion,

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participate in fine arts and sports programs available through their child's resident school district

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at no cost, if the participating school does not offer a similar program.

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     (h) The department shall adopt rules consistent with this chapter regarding:

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     (1) The creation of notification methodologies and timelines that will maximize student

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and public and private school participation;

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     (2) The creation of a simple and straightforward scholarship application procedures for

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eligible students and participating schools; and

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     (3) The calculation and distribution of scholarship funds to participating schools for

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eligible students no later than September 1st for the fall semester and February 1st for the spring

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semester.

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     16-100-4. Funding guidelines. -- (a) Any eligible student will qualify for a scholarship

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calculated by 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) For students from households with an annual income of greater than two and one-half

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

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three (3) times that amount, the scholarship amount shall be equal to the lesser of:

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     (i) Fifteen percent (15%) 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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     (b) A participating student shall be counted in the enrollment figures for his or her

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resident school district for the purpose of calculating state aid to the resident school district. The

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funds needed for a scholarship shall be subtracted from the state school aid payable to the

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student's resident school district.

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     (c) 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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     (d) Any aid the resident school district would have received for the student that is in

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excess of the funds needed for a scholarship to the participating school selected by the parent

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shall be sent to the residing school district of the eligible student.

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     16-100-5. Accountability standards for participating schools. -- (a) Administrative

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

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participating private schools shall:

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

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

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     (3) Certify that they comply with the nondiscrimination policies set forth in 42 USC

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1981; and

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     (4) Conduct criminal background checks on employees. The participating school shall

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then:

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     (i) Exclude from employment any people not permitted by state law to work in a private

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school; and

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     (ii) Exclude from employment any people that might reasonably pose a threat to the

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safety of students.

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     (b) Financial Accountability Standards. - To ensure that public funds are spent

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appropriately, all participating, private schools shall:

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     (1) Demonstrate their financial accountability by:

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     (i) Annually submitting to the department a financial information report for the school

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that complies with uniform financial accounting standards established by the department and

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conducted by a certified public accountant; and

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

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represents the costs per pupil, including the costs of the testing required herein. The auditor's

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report shall be limited in scope to those records that are necessary for the department to make

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payments to participating schools on 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 school choice scholarships

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expected to be paid during the school year to students admitted to 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 to the

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participating school. This information could include personal guarantees, reserve accounts or

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escrow accounts.

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     (c) Academic Accountability Standards. - There must be sufficient information about the

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academic impact parental choice scholarships have on participating students in order to allow

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parents and taxpayers to measure the achievements of the program, and therefore:

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     (1) Participating schools shall:

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     (i) Annually administer nationally recognized norm-referenced tests chosen by the

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participating school, that measure learning gains in math and language arts to all participating

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students in grades that require testing under the state's accountability testing laws for public

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schools; and

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     (ii) Provide the parents of each student with a copy of the results of the tests on an annual

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basis, beginning with the first year of testing; and

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     (iii) Provide the test results to the state or an organization chosen by the state on an

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annual basis, beginning with the first year of testing; and

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     (iv) Report student information that would allow the state to aggregate data by grade

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level, gender, family income level, and race; and

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     (v) Provide graduation rates of participating students to the department or an organization

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chosen by the state in a manner consistent with nationally recognized standards; and

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     (vi) For programs that provide education and training for children with special needs,

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annual testing that is most appropriate for the student based upon their individual needs and

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challenges, and best professional standards, may be substituted for the state achievement test.

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     (2) The state or an organization chosen by the state shall:

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     (i) Ensure compliance with all student privacy laws; and

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     (ii) Collect all test results; and

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     (iii) Provide the test results and associate learning gains to the public via a state website

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after the third (3rd) year of test and test-related data collection. The findings shall be aggregated

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by the student's grade level, gender, family income level, number of years participating in the

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scholarship program, and race.

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     (d) The sole purpose of requiring testing is to provide participating schools, parents and

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home school parents a benchmark to evaluate the progress of their students. The state does not

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have the authority, based on the student's test performance, to require any student to transfer from

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one educational environment to another; or to mandate curriculum changes of any kind to the

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educational curriculum provided by the participating school or by home school parents. Selection

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of an educational environment for each child is the exclusive right and sole responsibility of the

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parent.

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     (e) Participating School Autonomy. - A participating, private school is autonomous and

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not an agent 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, private school that accepts students who utilize a parental choice

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scholarship; and

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     (2) The creation of the parental choice scholarship program does not expand the

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regulatory authority of the state, its officers, or any school district to impose any additional

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regulation of private schools beyond those necessary to enforce the requirements of the program;

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and

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

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needs of their students without government control; and

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     (4) Participating schools will be bound by their current teacher qualification and

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certification requirements.

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     16-100-6. Responsibilities of the department of education. -- (a) The department shall

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ensure that eligible students and their parents are informed annually of which schools will be

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participating in the parental school choice scholarship program. Special attention shall be paid to

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ensuring that lower-income families are made aware of the program and their 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 a school from participation in the parental choice scholarship

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program if the department establishes that the participating school has:

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     (1) Intentionally and substantially misrepresented information required hereunder; or

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     (2) Routinely failed to comply with the accountability standards established by this

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chapter; or

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     (3) Failed to comply with any other provisions of this chapter; 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 decides to bar a participating school from the program, it shall

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notify eligible students and their parents of this decision as quickly as possible. Participating

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students attending a school barred by the department shall retain scholarship eligibility to attend

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another participating school.

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     (e) The department shall adopt rules and procedures as necessary for the administration

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of the parental school choice scholarship program.

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     16-100-7. Responsibilities of resident school districts. -- (a) The resident school district

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shall provide a participating school that has admitted an eligible student under this program with

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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 1232g).

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     (b) The resident school district shall provide transportation for an 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 private school as per current law. The

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

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     (c) If desired by the parent, the resident school district will allow students who live in

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their district, but attend another participating school or are home schooled, to participate in the

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district's fine arts and athletic programs.

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     16-100-8. Evaluation. -- (a) The department may contract with one or more qualified

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researchers who have previous experience evaluating school choice programs to conduct a study

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of the program with funds other than state funds.

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     (b) The study shall assess:

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     (1) The level of participating students' satisfaction with the program; and

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     (2) The level of parental satisfaction with the program; and

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     (3) The fiscal impact to the state and resident school districts of the program; and

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     (4) The resulting competition from private schools on the resident school districts, public

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school students, and quality of life in a community; and

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     (5) The impact of the program on public and private school capacity, availability and

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quality; and

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     (6) The academic performance and graduation rates of students who participate in this

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program in comparison to students who applied for a scholarship under this program but did not

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receive one because of random selection.

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     (c) The researchers who conduct the study shall:

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     (1) Apply appropriate analytical and behavioral science methodologies to ensure public

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confidence in the study;

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     (2) Protect the identity of participating schools and students by, among other things,

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keeping anonymous all disaggregated data other than that for the categories of grade level, gender

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and race and ethnicity; and

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     (3) Provide the general assembly with a final copy of the evaluation of the program.

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     (d) The relevant public and participating private schools shall cooperate with the research

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effort by providing student assessment results and any other data necessary to complete this

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study.

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     (e) The department may accept grants to assist in funding this study.

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     (f) The study shall cover a period of thirteen (13) years. The general assembly may

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require periodic reports from the researchers. After publishing their results, the researchers shall

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make their data and methodology available for public review, while complying with the

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requirements of the Family Educational Rights and Privacy Act (20 USC Section 1232g).

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     16-100-9. Effective dates. -- (a) The parental school choice scholarship program will be

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effective fall 2013 for students enrolled in kindergarten through ninth (9th) grade.

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     (b) Each fall an additional grade will be added to the program.

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     (c) Exceptions to the above schedule include:

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     (1) All special education students, regardless of age, are eligible to participate in the

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program effective fall 2013.

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     (i) In addition to participating schools, scholarship funds may be used for special

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education training and/or development programs designed for persons with a particular disability

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diagnosis.

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     (2) Students whose siblings are enrolled in a participating school are eligible to transfer to

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the participating school, at the parent’s discretion, regardless of age.

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     (3) Access to participation in fine arts and athletic programs, as described herein, is

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effective fall 2013 for all grade levels.

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     SECTION 2. This act shall take effect upon passage.

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LC02558

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION -- PARENTAL CHOICE SCHOLARSHIP PROGRAM ACT

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     This act would create the Parental Choice Scholarship Program Act.

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     This act would take effect upon passage.

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LC02558

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