2017 Arizona Revised Statutes
Title 15 - Education
§ 15-2403; Version 2 Empowerment scholarship accounts; administration; audits; policy handbook; posting

15-2403. Empowerment scholarship accounts; administration; audits; policy handbook; posting

(L17, Ch. 139, sec. 3. Pending referendum)

A. The treasurer shall contract with private financial management firms to manage Arizona empowerment scholarship accounts. The department shall cooperate with the treasurer and the financial management firm contracted by the treasurer.

B. The department shall conduct or contract for annual audits of empowerment scholarship accounts to ensure compliance with section 15-2402, subsection B, paragraph 4. The department shall also conduct or contract for random, quarterly and annual audits of empowerment scholarship accounts as needed to ensure compliance with section 15-2402, subsection B, paragraph 4.

C. The department may remove any parent or qualified student from eligibility for an Arizona empowerment scholarship account if the parent or qualified student fails to comply with the terms of the contract or applicable laws, rules or orders or knowingly misuses monies or knowingly fails to comply with the terms of the contract with intent to defraud and shall notify the treasurer. The department shall notify the treasurer to suspend the account of a parent or qualified student and shall notify the parent or qualified student in writing that the account has been suspended and that no further transactions will be allowed or disbursements made. The notification shall specify the reason for the suspension and state that the parent or qualified student has ten days, not including weekends, to respond and take corrective action. If the parent or qualified student refuses or fails to contact the department, furnish any information or make any report that may be required for reinstatement within the ten-day period, the department may remove the parent or qualified student pursuant to this subsection.

D. A parent may appeal, pursuant to title 41, chapter 6, article 10, an administrative decision made by the department pursuant to this article regarding determinations of allowable expenses, removal from the program or enrollment eligibility. The department shall notify the parent of the parent's ability to appeal an administrative decision at the same time the parent is notified of an administrative decision.

E. The department may refer cases of substantial misuse of monies to the attorney general for the purpose of collection or for the purpose of a criminal investigation if the department obtains evidence of fraudulent use of an account.

F. Beginning January 1, 2018, the department shall make monthly transfers of the amount calculated pursuant to section 15-2402, subsection C or D to the treasurer for deposit into the empowerment scholarship account of each qualified student. The department may not delay the deposit of monies into an empowerment scholarship account until a subsequent month unless monies will be retroactively prorated to the time the parent agreed to the terms and conditions prescribed in section 15-2402.

G. The department shall accept applications between July 1 and June 30 of each year. The department shall enroll and issue an award letter within forty-five days and, beginning January 1, 2018, within thirty days after receipt of a completed application and all required documentation. If the department determines that an applicant is ineligible for an empowerment scholarship account because the applicant does not meet the requirements prescribed for an qualified student, the department shall notify the applicant of the specific statutory deficiencies of the application and the rationale for the denial of the application. On or before May 30 of each year, the department shall furnish to the joint legislative budget committee an estimate of the amount required to fund empowerment scholarship accounts for the following fiscal year. The department shall include in its budget request for the following fiscal year the amount estimated in section 15-2402, subsection C for each qualified student.

H. The department may adopt policies and procedures necessary for the administration of empowerment scholarship accounts. The policies and procedures adopted pursuant to this subsection shall be developed and implemented pursuant to the intent of the law and by giving students the most educational options available under the law, including:

1. Policies for conducting or contracting for examinations of the use of account monies.

2. Conducting or contracting for random, quarterly and annual reviews of accounts.

3. Establishing or contracting for the establishment of an online anonymous fraud reporting service.

4. Establishing an anonymous telephone hotline for fraud reporting.

5. Policies that require a surety bond or insurance for account holders.

6. Policies that establish expense reporting, eligible expenses and application procedures. The policies regarding eligible expenses may not restrict the types or amounts of curriculum choices made by parents for students. The department shall request additional documentation and information regarding eligible expenses and shall provide a parent an opportunity to respond before denying an expenditure.

I. The department shall contract with an independent third party for the purposes of determining whether a qualified student is eligible to receive educational therapies or services pursuant to section 15-2402, subsection B, paragraph 4, subdivision (c).

J. The department shall develop and publish an applicant and participant policy handbook on or before July 1 of each year. The policy handbook shall include information pertaining to policies relating to interactions and processes of empowerment scholarship account applicants and participants adopted by the department to administer empowerment scholarship accounts. Only policies that are included in the policy handbook may be administered. The policy handbook does not apply to internal agency policies and procedures. The department may not publish the policy handbook, make any revisions or enforce any new policy or procedure before the completion of both of the following:

1. The collection of public comments for at least sixty days. The department shall consider and reasonably incorporate these public comments in the policy handbook.

2. The submission of a copy of the policy handbook and any revisions to the policy handbook to the governor, the president of the senate and the speaker of the house of representatives.

K. The department shall post on the department's website information and data that are updated monthly regarding the empowerment scholarship accounts, including:

1. Information regarding all purchases and expenditures made with empowerment scholarship account monies. The Information included pursuant to this paragraph may not violate the personal privacy of any student or family and shall include only aggregate data.

2. The number of enrolled students disaggregated by eligibility.

3. Any other information or data that may be pertinent to promoting transparency and accountability of empowerment scholarship accounts.