Bill Text: IL HB1573 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Education Savings Account Act. Requires the State Board of Education to create the Education Savings Account Program. Provides that a parent of an eligible student (defined as any elementary or secondary student who was eligible to attend a public school in this State in the preceding semester or is starting school in this State for the first time and who is a member of a household whose total annual income does not exceed an amount equal to 2.5 times the income standard used to qualify for a free or reduced-price lunch under the national free or reduced-price lunch program) shall qualify for the State Board to make a grant to his or her child's Education Savings Account by signing an agreement. Requires the State Board to deposit into an Education Savings Account some or all of the State aid under the State aid formula provisions of the School Code that would otherwise have been provided to the resident school district for the eligible student had the student enrolled in the resident school district. Provides that parents participating in the Program shall agree to use the funds deposited in their eligible students' accounts for certain qualifying expenses to educate the eligible student. Sets forth provisions concerning the calculation of grant amounts and other basic elements of the Program, administration of the Program, accountability standards for participating schools, and the responsibilities of the State Board and resident school districts.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced) 2023-05-19 - Rule 19(a) / Re-referred to Rules Committee [HB1573 Detail]

Download: Illinois-2023-HB1573-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1573 Introduced , by Rep. Adam M. Niemerg SYNOPSIS AS INTRODUCED:
New Act
Creates the Education Savings Account Act. Requires the State Board of Education to create the Education Savings Account Program. Provides that a parent of an eligible student (defined as any elementary or secondary student who was eligible to attend a public school in this State in the preceding semester or is starting school in this State for the first time and who is a member of a household whose total annual income does not exceed an amount equal to 2.5 times the income standard used to qualify for a free or reduced-price lunch under the national free or reduced-price lunch program) shall qualify for the State Board to make a grant to his or her child's Education Savings Account by signing an agreement. Requires the State Board to deposit into an Education Savings Account some or all of the State aid under the State aid formula provisions of the School Code that would otherwise have been provided to the resident school district for the eligible student had the student enrolled in the resident school district. Provides that parents participating in the Program shall agree to use the funds deposited in their eligible students' accounts for certain qualifying expenses to educate the eligible student. Sets forth provisions concerning the calculation of grant amounts and other basic elements of the Program, administration of the Program, accountability standards for participating schools, and the responsibilities of the State Board and resident school districts.
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STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
HB1573 LRB103 26046 RJT 52401 b
AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Education Savings Account Act.
Section 5. Definitions.
"Eligible postsecondary institution" means a public
community college, a public university, or an accredited
private postsecondary institution.
"Eligible student" means any elementary or secondary
student who was eligible to attend a public school in this
State in the preceding semester or is starting school in this
State for the first time and who is a member of a household
whose total annual income does not exceed an amount equal to
2.5 times the income standard used to qualify for a free or
reduced-price lunch under the national free or reduced-price
lunch program established under 42 U.S.C. 1751 et seq.
"Parent" means a resident of this State who is a parent,
guardian, custodian, or other person with the authority to act
on behalf of the child.
"Participating school" means any private school that
provides education to elementary or secondary students and has
notified the State Board of its intention to participate in

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the Program and comply with the Program's requirements.
"Private tutoring" means tutoring services provided by
tutors accredited by a regional or national accrediting
organization.
"Program" means the Education Savings Account Program
created in this Act.
"Resident school district" means the public school
district in which the student resides.
"State Board" means the State Board of Education.
Section 10. Basic elements of the Program.
(a) The State Board shall create the Education Savings
Account Program. The Program shall begin with the fall
semester of the 2024-2025 school year.
(b) A parent of an eligible student shall qualify for the
State Board to make a grant to his or her child's Education
Savings Account if the parent signs an agreement promising:
(1) to provide an education for the eligible student
in at least the subjects of reading, grammar, mathematics,
social studies, and science; and
(2) not to enroll their eligible student in a district
or charter school.
(c) The State Board shall deposit into an Education
Savings Account some or all of the State aid under Section
18-8.15 of the School Code that would otherwise have been
provided to the resident school district for the eligible

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student had the student enrolled in the resident school
district, as calculated under subsection (e) of this Section.
(d) Parents participating in the Program shall agree to
use the funds deposited in their eligible students' Education
Savings Accounts for the following qualifying expenses to
educate the eligible student:
(1) Tuition and fees at a participating school.
(2) Textbooks required by a participating school.
(3) Payment to a licensed or accredited tutor.
(4) Payment for the purchase of curriculum.
(5) Tuition or fees for a non-public, online learning
program.
(6) Fees for national, norm-referenced examinations,
Advanced Placement examinations or similar courses, and
any examinations related to college or university
admission.
(7) Contribution to the eligible student's qualified
tuition program established pursuant to 26 U.S.C. 529.
(8) Educational services for pupils with disabilities
from a licensed or accredited practitioner or provider.
(9) Tuition and fees at an eligible postsecondary
institution.
(10) Textbooks required for college or university
courses.
(11) Fees for account management by private financial
management firms approved by the State Board.

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(e) Grant amounts to Education Savings Accounts shall be
calculated according to the following schedule:
(1) For students from households qualifying for the
federal free or reduced-price lunch program, the amount
granted to the student's Education Savings Account shall
be equal to the dollar amount the resident school district
would have received to serve and educate the eligible
student from State aid under Section 18-8.15 of the School
Code had the student enrolled there.
(2) For students from households with an annual income
greater than the amount required to qualify for the
federal free or reduced-price lunch program but less than
1.5 times that amount, the amount granted to the student's
Education Savings Account shall be equal to 75% of the
dollar amount the resident school district would have
received to serve and educate the eligible student from
State aid under Section 18-8.15 of the School Code had the
student enrolled there.
(3) For students from households with an annual income
of greater than 1.5 times the amount required to qualify
for the federal free or reduced-price lunch program but
less than 2 times that amount, the amount granted to the
student's Education Savings Account shall be equal to 50%
of the dollar amount the resident school district would
have received to serve and educate the eligible student
from State aid under Section 18-8.15 of the School Code

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had the student enrolled there.
(4) For students from households with an annual income
of greater than 2 times the amount required to qualify for
the federal free or reduced-price lunch program but less
than 2.5 times that amount, the amount granted to the
student's Education Savings Account shall be equal to 25%
of the dollar amount the resident school district would
have received to serve and educate the eligible student
from State aid under Section 18-8.15 of the School Code
had the student enrolled there.
(f) A participating school, private tutor, eligible
postsecondary institution, or other educational provider may
not refund, rebate, or share a student's grant with the
student's parent or the student in any manner. The funds in an
Education Saving Account may be used only for educational
purposes.
(g) Parents shall be allowed to make payments for the
costs of educational programs and services not covered by the
funds in their accounts.
(h) A participating student shall be counted in the
enrollment figures for his or her resident school district for
the purposes of calculating State aid to the resident school
district under Section 18-8.15 of the School Code. The funds
needed for a grant to an Education Savings Account shall be
subtracted from the State aid payable to the student's
resident school district under Section 18-8.15 of the School

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Code.
Section 15. Administration of the Program.
(a) The State Board shall approve private financial
management firms to manage Education Savings Accounts.
(b) The State Board shall have the authority to conduct or
contract for the auditing of accounts and shall, at a minimum,
conduct random audits of accounts on an annual basis. The
State Board shall have the authority to make any parent of an
eligible student ineligible for the Program in the event of
substantial misuse of the funds in the account.
(c) The State Board shall have the authority to refer
cases of substantial misuse of funds to law enforcement
agencies for investigation if evidence of fraudulent use of an
account is obtained.
(d) The State Board shall provide parents of participating
students with a written explanation of the allowable uses of
Education Savings Accounts, the responsibilities of parents,
and the duties of the State Board.
(e) The State Board may deduct an amount from the grants to
Education Savings Accounts to cover the costs of overseeing
the accounts and administering the program, up to a limit of
3%.
(f) The State Board shall establish reasonable fees for
private financial management firms participating in the
Program based upon market rates.

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(g) The State Board shall make payments to eligible
students' Education Savings Accounts on a quarterly basis.
Section 20. Accountability standards for participating
schools.
(a) To ensure that students are treated fairly and kept
safe, all participating schools shall:
(1) comply with all health and safety laws or codes
that apply to private schools;
(2) hold a valid occupancy permit if required by their
local government;
(3) certify that they comply with the
nondiscrimination policies set forth in 42 U.S.C. 1981;
and
(4) conduct criminal history records checks on
employees. The participating school shall then:
(A) exclude from employment any people not
permitted by State law to work in a private school; and
(B) exclude from employment any people that might
reasonably pose a threat to the safety of students.
(b) To ensure that funds are spent appropriately, all
participating schools shall:
(1) provide parents with a receipt for all qualifying
expenses at the school; and
(2) demonstrate their financial viability by showing
they can repay any funds that might be provided from

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Education Savings Accounts, if they are to receive $50,000
or more during the school year, by:
(A) filing with the State Board, prior to the
start of the school year, a surety bond payable to this
State in an amount equal to the aggregate amount of the
funds from Education Savings Accounts expected to be
paid during the school year from students admitted at
the participating school; or
(B) filing with the State Board, prior to the
start of the school year, financial information that
demonstrates the school has the ability to pay an
aggregate amount equal to the amount of the funds from
Education Savings Accounts expected to be paid during
the school year to students admitted to the
participating school.
(c) In order to allow parents and taxpayers to measure the
achievements of the Program:
(1) parents shall ensure that:
(A) each year their eligible student takes either
State achievement tests or national, norm-referenced
tests that measure learning gains in mathematics and
language arts and provide for value-added assessment;
(B) the results of these tests are provided to the
State Board or an organization chosen by the State
Board on an annual basis;
(C) the student information is reported in a way

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that would allow the State Board to aggregate data by
grade level, gender, family income level, and race;
and
(D) the State Board or an organization chosen by
the State Board will be informed of the eligible
student's graduation from high school; and
(2) the State Board or an organization chosen by the
State Board shall:
(A) ensure compliance with all student privacy
laws;
(B) collect all test results;
(C) provide the test results, associated learning
gains, and graduation rates to the public, via the
State Board's Internet website, after the third year
of test and graduation-related data collection; the
findings shall be aggregated by the students' grade
level, gender, family income level, number of years of
participation in the Program, and race;
(D) provide graduation rates to the public via the
State Board's Internet website after the third year of
test and test-related data collection; and
(E) administer an annual parental satisfaction
survey that shall ask parents of students receiving
Education Savings Accounts to express:
(i) their satisfaction with the Program; and
(ii) their opinions on other topics, items, or

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issues that the State Board finds would elicit
information about the effectiveness of the Program
and the number of years their child has
participated in the Program.
(d) A participating school is autonomous and not an agent
of this State or the federal government, and, therefore:
(1) the State Board or any other State agency may not
in any way regulate the educational program of a
participating school or education provider that accepts
funds from an Education Savings Account;
(2) the creation of the Program does not expand the
regulatory authority of this State, its officers, or any
school district to impose any additional regulation of
private schools or education providers beyond those
necessary to enforce the requirements of the Program; and
(3) participating schools and education providers
shall be given the maximum freedom to provide for the
educational needs of their students without governmental
control.
Section 25. Responsibilities of the State Board.
(a) The State Board shall ensure that eligible students
and their parents are informed annually of which schools will
be participating in the Program. Special attention shall be
paid to ensuring that lower-income families are made aware of
the program and their options.

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(b) The State Board shall create a standard form that
parents of eligible students can submit to establish the
student's eligibility for the Program. The State Board shall
ensure that the application is readily available to interested
families through various sources, including the Internet.
(c) The State Board may bar a participating school or
education provider from the Program if the State Board
establishes that the participating school or education
provider has:
(1) routinely failed to comply with the accountability
standards established in Section 20 of this Act; or
(2) failed to provide the eligible student with the
educational services funded by the Education Savings
Account.
(d) If the State Board decides to bar a participating
school or education provider from the program, the State Board
shall notify eligible students and their parents of this
decision as quickly as possible.
(e) The State Board shall adopt rules and procedures as
necessary for the administration of the Program.
Section 30. Responsibilities of resident school districts.
(a) The resident school district shall provide a
participating school or education provider that has admitted
an eligible student under the Program with a complete copy of
the student's school records, while complying with the federal

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Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
1232g).
(b) The resident school district shall provide
transportation for an eligible student to and from the
participating school or education provider under the same
conditions as the resident school district is required to
provide transportation for other resident students to and from
private schools under the law. The resident school district
shall qualify for State transportation aid for each student so
transported.