MISSOURI EMPOWERMENT SCHOLARSHIP ACCOUNTS PROGRAM

(Sections 135.713, 135.714, 135.715, and 166.700)

This act modifies provisions relating to the Missouri Empowerment Scholarship Accounts Program.

The act changes the maximum amount of tax credits that may be allocated in any year from $50 million to $75 million. Such maximum amount shall be increased annually by any percentage increase or decrease in the amount appropriated to school districts under the foundation formula. The act repeals a provision that the program shall be effective in any fiscal year immediately following any year in which the amount appropriated for pupil transportation equals or exceeds 40% of the projected amount necessary to fully fund transportation aid funding for fiscal year 2021. (Section 135.713)

The act modifies the scholarship distribution order to qualified students. The first students to receive scholarship funds shall be students who received scholarships in the previous year, followed by students who are siblings of students who are already receiving a scholarship. The act further outlines a distribution order that prioritizes funding to students who receive special education services, students who are eligible for free or reduced price lunch and who reside in an unaccredited or provisionally accredited school district, students who are eligible for free or reduced price lunch, and students who are the children of active duty military personnel who have relocated to Missouri.

The act modifies the total grant amount for students with an individualized education plan (IEP) or limited English proficiency or who receive free or reduced-price lunch. Students with limited English proficiency shall receive no more than 160% of the state adequacy target; students who receive free or reduced-price lunch shall receive no more than 125% of the state adequacy target; and students with an IEP shall receive no more than 175% of the state adequacy target. All other students shall receive a grant amount that does not exceed the state adequacy target.

The act provides that educational assistance organizations shall provide certain data that is currently provided only to the State Treasurer to the Department of Elementary and Secondary Education and the Missouri Empowerment Scholarship Accounts Program Board, as well. Educational assistance organizations shall also assist the Board with the collection of any other data requested by the Board.

The act requires the State Treasurer to post certain information relating to scholarship recipients, qualified schools, and educational assistance organizations on the Treasurer's website annually. (Section 135.714)

The act repeals a provision that the annual increase to the cumulative amount of tax credits shall cease when the amount of tax credits reaches $50 million.

If the total contributions to educational assistance organizations exceed $25 million in any school year, the State Treasurer may certify one additional educational assistance organization to administer scholarship accounts. A maximum of seven, rather than six, educational assistance organizations may have their principal place of business in any one of the counties listed in the act.

The act provides that all laws and regulations that apply to employees of an educational assistance organization shall also apply to the actions of any employees of a private financial management firm while they are conducting work relating to the direct decision-making of the operation of such educational assistance organization.

The act modifies membership of the Missouri Empowerment Scholarship Accounts Board by removing the Commissioner of Administration and adding an additional member to be appointed by the members of the board who is an employee of an educational assistance organization and whose responsibilities are directly related to such organization's involvement in the program. The board shall assist the State Treasurer with data collection, collaboration with the Department of Elementary and Secondary Education, making recommendations to the State Treasurer regarding the promulgation of rules concerning the program, and supporting educational assistance organizations and the State Treasurer with fulfilling certain duties established in current law. (Section 135.715)

The act modifies the definition of "qualified school" by providing that FPE schools, rather than home schools, shall be qualified to participate in the program.

The act modifies the definition of "qualified student" by including any student who is a resident of this state, rather than only those students who live in a charter county or a city with at least 30,000 inhabitants, and who is not an illegal alien, as such term is defined in the act. Such definition is further modified by including any student who is a member of a household whose total annual income is 300% or less than the income standard used to qualify for free and reduced-price lunch, rather than only those students whose household income is 200% or less than such standard. The definition is also modified by adding siblings of qualified students who received a scholarship in the previous year and will receive a scholarship in the current year. (Section 166.700)

These provisions are similar to SCS/SB 360 (2023), HB 1738 (2024), HB 2104 (2024), and provisions in SB 1391 (2024), SCS/SB 1392 (2024), and HCS/HB 350 (2023).

FAMILY PACED EDUCATION (FPE) SCHOOLS

(Sections 161.670, 162.996, 166.700, 167.012, 167.013, 167.031, 167.061, 167.600, 167.619, 210.167, 210.211, 211.031, and 452.375)

The act defines a "Family Paced Education school" or "FPE school" as a school that enrolls any student who participates in the Missouri Empowerment Scholarship Accounts Program and that satisfies certain other criteria relating to instruction. The current definition of "home school" is modified by specifying that a home school shall not enroll any student who participates in such Program, and a home school is not an FPE school. The act applies to FPE schools several provisions of law that currently apply to home schools, including provisions relating to child custody and the licensing of child care providers.

CHARTER SCHOOLS

(Sections 160.400 and 160.415)

The act adds all school districts located in Boone County to the list of school districts in which a charter school may be operated by any entity currently authorized to operate a charter school under state law. Provisions of current law that provide for additional state aid to charter schools shall not apply to any charter school operated in Boone County.

All laws and regulations that apply to employees of a charter school shall also apply to the actions of any employees of a charter school management company while such employees are conducting any work relating to the direct decision-making of the operation of the charter school.

SCHOOL ATTENDANCE OFFICERS

(Section 167.071)

The act repeals a provision authorizing a seven-director school district to appoint a school attendance officer who has the powers of a deputy sheriff and may investigate claims of violations of the compulsory attendance law and arrest truant juveniles without a warrant.

This provision is identical to provisions in SB 819 (2024) and HCS/SS/SCS/SBs 411 & 230 (2023).

OLIVIA SHANNON