AZ HB2885

Eliminates the requirement that parents using Arizona Empowerment Scholarship Accounts (ESAs) use account funds for core subjects (reading, grammar, mathematics, social studies, science) if transfers occur on a schedule other than quarterly.

Changes the account inactivity period triggering closure notification from three academic years to one academic year, with a 60-day renewal window before account closure.

Modifies monthly transfer schedule language to allow the department to make transfers monthly instead of quarterly, removing language that previously allowed alternative transfer schedules.

Requires qualified schools receiving ESA funds to notify parents in writing about special education services and educational therapies before parents pay tuition, limit tuition increases to the consumer price index, report graduation rates and excessive absences, and provide IEP/504 accommodations or obtain written waivers.

Clarifies that parents may use account monies to pay for independent evaluations from qualified examiners, with costs paid from the account or by the school district if funds are insufficient, and allows these evaluation expenses to be allowable uses of ESA funds.