SB 2400 — Relating to the creation of a criminal offense for the misuse of education savings account funds and the establishment of the education savings account program; to amend and reenact section 15.1‑20‑02 of the North Dakota Century Code, relating to exceptions to compulsory school attendance; to provide a penalty; to provide an appropriation; and to provide a continuing appropriation.

(1) Routinely failed to comply with the accountability standards established under this chapter;

or (2) Failed to provide the eligible student with the educational services funded by the education savings account.

Enrollment - Account deposits.

1.

From January first to June thirtieth immediately preceding the school year for which the education savings account payment is requested, the parent of an eligible student may request an education savings account payment by submitting an application to the superintendent of public instruction.

Page No.

3 25.1334.04000 Sixty-ninth Legislative Assembly 2.

Within thirty days of submission of an application, the superintendent of public instruction or third-party entity shall notify the parent whether the eligible student is approved for the following school year and specify the amount of the education savings account payment for the eligible student, if known at the time of the notice.

3.

For an eligible student approved for an education savings account payment, the superintendent of public instruction or third-party entity shall establish an individual account for the eligible student in the education savings account fund and deposit the payment into the eligible student's individual account within thirty days following submission of the application, but in any case no later than July fifteenth.

4.3.

ABeginning nonpublicwith the school orbudget otheryear providerbeginning ofJuly qualified1, educational2026, expensesfor acceptingeach paymentschool fromyear, a parent using funds from an eligible student'sstudent: individual account in the fund may not refund, rebate, or share any portion of the payment with the parent or eligible student.

5.

Moneys remaining in an eligible student's individual account upon conclusion of the fiscal year must be returned to the education savings account fund.

6.

Beginning with the school budget year beginning July 1, 2026, for each school year, an eligible student who:

AttendsShall areceive publican schooleducation issavings account payment of one thousand dollars, if the eligible tostudent's receivehousehold has an educationannual savingsincome accountless paymentthan ofor fiveequal to three hundred dollars.percent of the most recently revised poverty income guidelines published by the United States department of health and human services;

and b.

IsMay enrolled in and attends a nonpublic participating school is eligible to receive anany educationfederal savingsscholarship accountfor paymenteducational of:choice.

(1) Three thousand five hundred dollars, if the eligible student's household has an annual income less than or equal to three hundred percent of the most recently revised poverty income guidelines published by the United States department of health and human services.

(2) Two thousand dollars, if the eligible student's household has an annual income less than or equal to five hundred percent of the most recently revised poverty income guidelines published by the United States department of health and human services.

42 25.1334.0400025.1334.05000 Sixty-ninth Legislative Assembly (3)4. Five hundred dollars, if the eligible student does not qualify under paragraph 1 or 2.

c.Notwithstanding any other provision of this chapter, the superintendent of public instruction, parents, and eligible students shall comply with any federal law or rule upon which receiving a federal scholarship for educational choice is contingent.

ParticipatesThe in a home education programsavings inaccounts accordanceunder withthis chapter 15.1-23,may isbe eligibleused to receivefacilitate anany educationfederal savingseducational accountchoice paymentprogram. of five hundred dollars.

7.

Education savings account payments may be approved for one school year and applications must be submitted annually for payments in subsequent school years.

8.

Funds deposited in an education savings account are not taxable income to the parent or eligible student.

Participating schools - Accountability standards.

1.

A participating school shall:

a.

Comply with all health and safety laws or codes that apply to nonpublic schools.

b.

Hold a valid occupancy permit if required by the city in which the school is located.

c.

Certify the school complies with the nondiscrimination policies under 42 U.S.C.

1981.

d.

Conduct criminal background checks on employees.

e.

Exclude from employment any individual who:

(1) Is not permitted by state law to work in a nonpublic school;

or (2) Might reasonably pose a threat to the safety of eligible students.

f.

Provide a parent with a receipt for all qualifying expenses at the school.

g.

Demonstrate the school's financial viability, if the school will receive fifty thousand dollars or more during the school year, by filing with the superintendent of public instruction before the start of the school year:

(1) A surety bond payable to the state in an amount equal to the aggregate amount of funds from education savings accounts the participating school expects to receive;

or (2) Financial information demonstrating the school is able to pay an aggregate amount equal to the amount of the funds from education savings accounts the participating school expects to receive.

Page No.

5 25.1334.04000 Sixty-ninth Legislative Assembly 2.

a.

An eligible student using education savings account program funds for tuition payments at a participating school shall take required state tests and assessments in accordance with section 15.1-21-08.

b.

The superintendent of public instruction shall compile and publish assessment results in accordance with sections 15.1-21-09 and 15.1-21-10.

c.

The superintendent of public instruction shall administer an annual parental satisfaction survey requesting each parent of an eligible student receiving an education savings account program payment to indicate the number of years the child has participated in the education savings account program and express the parent's:

(1) Satisfaction with the education savings account program;

and (2) Opinions on other topics, items, or issues that may indicate the effectiveness of the education savings account program.

3.

A participating school or education service provider is autonomous and not an agent of the state or federal government.

The superintendent may not regulate the educational program of a participating school or education service provider that accepts funds from an education savings account.

The creation of the education savings account program does not expand the regulatory authority of the state, its officers, or a school district beyond the regulations necessary to enforce the requirements of the education savings account program.

63 25.1334.0400025.1334.05000