MN HF3720

Establishes a five-year pilot program (2016-2017 through 2020-2021 school years) creating Education Savings Accounts (ESAs) for students from families earning 175 percent or less of the poverty level who attend low-performing schools.

Eligible students can use ESA funds for tuition at nonpublic schools, tutoring, curriculum, online learning, educational therapies, postsecondary institution costs, standardized tests, and up to $300 annually in school supplies; parents forfeit their child's entitlement to free public education while participating.

ESA funding equals the statewide average general education revenue per adjusted pupil unit plus the student's attributable special education aid from their most recent year of public school enrollment.

Commissioner of Education administers the program, issues ESA debit cards beginning 2016-2017, conducts random audits, and can deduct up to 6 percent of appropriations for administration; applications are processed within 21 business days on a first-come, first-served basis starting July 1, 2016.

Nonpublic schools and educational service providers accepting ESA funds remain autonomous and cannot be regulated beyond program enforcement requirements; misspending of three offenses within three years disqualifies participation, and substantial fraud cases are referred to law enforcement.