South Carolina General Assembly
116th Session, 2005-2006

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H. 4315

STATUS INFORMATION

General Bill
Sponsors: Reps. Rice, Vaughn and G.R. Smith
Document Path: l:\council\bills\gjk\20636sd06.doc
Companion/Similar bill(s): 4769

Introduced in the House on January 10, 2006
Currently residing in the House Committee on Ways and Means

Summary: Smart Start and Special Needs Scholarship Program

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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  11/16/2005  House   Prefiled
  11/16/2005  House   Referred to Committee on Ways and Means
   1/10/2006  House   Introduced and read first time HJ-27
   1/10/2006  House   Referred to Committee on Ways and Means HJ-28

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

11/16/2005

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING CHAPTER 156 SO AS TO ESTABLISH THE SMART START SCHOLARSHIP PROGRAM WHICH ALLOWS CHILDREN FROM CERTAIN FAMILY INCOME GROUPS TO ATTEND A PUBLIC OR NONPUBLIC FOUR-YEAR-OLD PRESCHOOL PROGRAM OR A FIVE-YEAR-OLD KINDERGARTEN PROGRAM OF THEIR CHOICE AND TO ESTABLISH THE SPECIAL NEEDS SCHOLARSHIP PROGRAM THAT PROVIDES SPECIAL NEEDS STUDENTS WITH THE OPTION TO ATTEND A PUBLIC OR NONPUBLIC SCHOOL OF THEIR CHOICE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Title 59 of the 1976 Code is amended by adding:

"CHAPTER 156

Article 1

Smart Start Scholarship Program

Section 59-156-10.    This article is known and may be cited as the Smart Start Scholarship Program of 2006.

Section 59-156-20.    As used in this article:

(1)    'program' means the Smart Start Scholarship Program created in this article;

(2)    'eligible child' means a child who is old enough to attend five-year-old kindergarten in this State or, in the case of a child who wishes to attend preschool, is one year younger than the attendance age for five-year-old kindergarten in this State;

(3)    'parent' includes a guardian, custodian, or other person with the authority to act on behalf of the child;

(4)    'department' means the State Department of Education;

(5)    'resident school district' means the public school district in which the child resides;

(6)    'participating school' means either a public school outside of the resident school district or any nonpublic school that offers kindergarten or preschool programs and has notified the department of its intention to participate in the program and comply with the program's requirements.

Section 59-156-30.    (A)    Every eligible child shall qualify for a scholarship to attend a participating school.

(B)    Parents may choose whether they want their child to attend a full-day or half-day kindergarten program.

(C)    Parents may choose whether they want their child to attend a full-day or half-day preschool program and whether they want their preschooler to attend the program every day or less often.

(D)    Scholarship amounts must be calculated according to the following schedule for full-day kindergarten. The scholarship amount shall be reduced by fifty percent for half-day kindergarten programs and by a proportionate amount for part-time preschool programs.

(1)    For children from households qualifying for the federal free or reduced-price lunch program, the scholarship amount shall be equal to the lesser of one hundred percent of the dollar amount the resident school district would have received to serve and educate the eligible child from state and local sources had the child enrolled there, or the participating school's annual cost per child.

(2)    For children from households with an annual income greater than the amount required to qualify for the free or reduced lunch program but less than one and one-half times that amount, the scholarship amount must be equal to the less of seventy-five percent of the dollar amount the resident school district would have received to serve and educate the eligible child from state and local sources had the child enrolled there, or the participating school's annual cost per child.

(3)    For children from households with an annual income of greater than one and one-half times the amount required to qualify for the free or reduced lunch program but less than two times that amount, the scholarship amount must be equal to the lesser of fifty percent of the dollar amount the resident school district would have received to serve and educate the eligible child from state and local sources had the child enrolled there, or the participating school's annual cost per child.

(4)    For children from households with an annual income of greater than two times the amount required to qualify for the free or reduced lunch program but less than two and one-half times that amount, the scholarship amount must be equal to the lesser of twenty-five percent of the dollar amount the resident school district would have received to serve and educate the eligible child from state and local sources had the child enrolled there, or the participating school's annual cost per child.

(E)    The scholarship is the entitlement of the eligible child under the supervision of the child's parent and not that of any school.

(F)    A participating school may not refund, rebate, or share a child's scholarship with a parent or the child in any manner. A child's scholarship may only be used for the purposes of education and school readiness.

(G)    Eligible children who qualify for the federal free or reduced lunch program may attend any participating school in the Smart Start Scholarship Program at no charge to the child, and the scholarship under this article shall cover the cost of all tuition and mandatory fees for these children. Participating schools may charge the difference between the scholarship amount and all tuition and mandatory fees for eligible children from households with incomes that exceed the annual income required to qualify for free or reduced lunch program. A participating school may not require a child to enroll in or charge any fee for supplemental services as a condition of admitting the child through the Smart Start Scholarship Program.

(H)    Participating schools that have more eligible children applying than spaces available shall fill the available spaces by a random selection process, except that participating schools may give preference to siblings of enrolled children and previously enrolled scholarship children under this article.

(I)    If a child is denied admission to a participating school because it has too few available spaces, the eligible child may transfer his scholarship to another participating school that has spaces available.

(J)    Eligible children must be counted in the enrollment figures for their resident school district for the purposes of calculating state aid to the resident school district. The funds needed for a scholarship must be subtracted from the state school aid payable to the child's resident school district. Any aid the school district would have received for the child in excess of the funds needed for a scholarship must be kept by the State.

(K)    The department shall adopt regulations consistent with this article regarding:

(1)    the eligibility and participation of nonpublic schools, including time lines that maximize participation by eligible children, public and nonpublic schools;

(2)    the calculation and distribution of scholarships to eligible children; and

(3)    the application and approval procedures for scholarships for eligible children and participating schools.

Section 59-156-40.    (A)    To ensure that children are treated fairly and kept safe, all participating schools shall:

(1)    comply with all health and safety laws or codes that apply to nonpublic schools;

(2)    hold a valid occupancy permit if required by their municipality or county;

(3)    certify that they will not discriminate in admissions on the basis of race, color, national origin, religion, or disability; and

(4)    comply with all state laws that apply to nonpublic schools regarding criminal background checks for employees and exclude from employment any individuals not permitted by state law to work in a nonpublic school.

(B)    To ensure that public funds are spent appropriately, all participating nonpublic schools shall:

(1)    demonstrate their financial accountability by submitting a financial information report for the school that complies with uniform financial accounting standards established by the department and conducted by a certified public accountant, and by having the accountant certify that the report is free of material misstatements and fairly represents the costs per child under Section 59-156-30(D). The accountant's report must be limited in scope to those records that are necessary for the department to make payments to participating schools on behalf of parents for scholarships;

(2)    demonstrate their financial viability by showing they can repay any funds that might be owed to the State, if they are to receive fifty thousand dollars or more during the school year, by filing with the department before the start of the school year a surety bond payable to the State in an amount equal to the aggregate amount of the scholarships expected to be paid during the school year to children admitted at the participating school, or by filing with the department before 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 scholarships expected to be paid during the school year to children admitted at the participating school.

(C)    To ensure that schools provide academic accountability to parents of children in the program, all participating schools shall regularly report to the parent on the child's progress.

(D)    A participating school is autonomous and not an agent of the state or federal government and as a result:

(1)    the department or any other state agency may not in any way regulate the educational program of a participating school that accepts a Smart Start scholarship;

(2)    the creation of this program does not expand the regulatory authority of the State, its officers, or any school district to impose any additional regulation of nonpublic schools beyond those necessary to enforce the requirements of the program; and

(3)    participating schools must be given the maximum freedom to provide for the educational needs of their enrolled children without governmental control.

Section 59-156-50.    (A)    The department shall ensure that eligible children and their parents are informed annually of which schools are participating in the Smart Start Scholarship Program. Special attention must be paid to ensuring that lower income families are made aware of the program and their options.

(B)    The department shall create a standard application that children interested in the Smart Start Scholarship Program can use to submit to participating schools to establish their eligibility and apply for admissions. Participating schools may require supplemental information from applicants. The department shall ensure that the application is readily available to interested families through various sources, including the Internet.

(C)    The department may bar a school from participation in the Smart Start Scholarship Program if the department establishes that the participating school has:

(1)    intentionally and substantially misrepresented information required under Section 59-156-40;

(2)    routinely failed to comply with at least three of the accountability standards established in Section 59-156-40;

(3)    failed to comply with Section 59-156-30(E); or

(4)    failed to refund to the State any scholarship overpayments in a timely manner.

(D)    If the department decides to bar a participating school from the program, it shall notify eligible children and their parents of this decision as quickly as possible.

(E)    The department shall adopt regulations and procedures as necessary for the administration of the Smart Start Scholarship Program.

(F)    The department shall work with other state and local agencies administering education and school readiness programs to:

(1)    minimize duplicate regulation, licensing, and monitoring;

(2)    maximize the receipt of federal funds;

(3)    coordinate state services and grants for younger children to ensure the efficient use of all funds for these programs; and

(4)    coordinate state grants to ensure that no provider receives state funds in excess of the scholarship limits for each child.

Section 59-156-60.    (A)    The resident school district shall provide to the participating school that has admitted an eligible student under this program with a complete copy of the child's school records while complying with the federal Family Educational Rights and Privacy Act of 1974.

(B)    The resident school district shall provide transportation for the eligible child attending a full day kindergarten or preschool program to and from the participating school under the same conditions as the resident school district is required to provide transportation for other resident students. The resident school district qualifies for state transportation aid for each student transported.

Section 59-156-70.    (A)    The Education Oversight Committee shall conduct a study of the program.

(B)    The study shall assess the:

(1)    level of parental satisfaction with the program;

(2)    effectiveness of the program in advancing the academic preparedness of the participant;

(3)    impact of the program on public and nonpublic school capacity, availability, and quality;

(4)    impact of the program on childcare capacity, availability, and quality; and

(5)    impact of the program and the resulting competition from nonpublic schools on the resident school districts, and childcare providers.

(C)    In conducting the study the Education Oversight Committee shall:

(1)    apply appropriate analytical and behavioral science methodologies to ensure public confidence in the study;

(2)    protect the identity of participating schools and students by, among other things, keeping anonymous all disaggregated data other than that for the categories of age, grade level, gender and race, and ethnicity; and

(3)    provide the Governor and the General Assembly with a final copy of the evaluation of the program.

(D)    The relevant public and nonpublic schools shall cooperate with the research effort by providing the data necessary to complete this study.

Article 3

Special Needs Scholarship Program

Section 59-156-310.    This article is known and may be cited as the 'Special Needs Scholarship Program of 2006'.

Section 59-156-320.    As used in this article:

(1)    'program' means the Special Needs Scholarship Program;

(2)    'eligible student' means any elementary or secondary student attending public school in our State with an individual education plan, including but not limited to students who are mentally handicapped, speech and language impaired, deaf or hard of hearing, visually impaired, dual sensory impaired, physically impaired, emotionally handicapped, specific learning disabled, autistic, or hospitalized or homebound due to illness or disability;

(3)    'parent' includes a guardian, custodian, or other person with authority to act on behalf of the child;

(4)    'resident school district' means the public school district in which the student resides;

(5)    'department' means the State Department of Education; and

(6)    'participating school' means either a public school outside of the resident school district or any nonpublic school that provides education to elementary or secondary students that has notified the department of their intention to participate in the program and comply with its requirements.

Section 59-156-330.    (A)    A parent of a public school special needs student who is dissatisfied with the student's progress shall qualify for a scholarship from the State for the child to enroll in and attend a nonpublic school if:

(1)    the special needs student has had an individual education plan written in accordance with regulations of the department;

(2)    the student has been accepted for admission at a participating school; and

(3)    the parent has requested a scholarship from the State before the deadline established by the department.

(B)    The department shall inform the resident school district that a special needs student has requested a special needs scholarship. The resident school district within three business days shall provide the department with a copy of the student's most current individual education plan.

(C)    Upon receipt of the special needs student's request for a scholarship, the department shall review the individual education plan drafted by the student's public school to determine the amount of the scholarship. The department shall provide the student's parents with a timely written explanation of its determination for the amount of the scholarship.

(D)    The minimum scholarship granted an eligible student shall be an amount equivalent to the cost of the educational program that would have been provided for the student in their resident school district. Although the scholarship amount is a function of a student's individual education plan, the participating school is not required to abide by the individual education plan. The parent and the participating school mutually shall determine the best services and educational plan for the student.

(E)    The amount of the special needs scholarship must be the lesser of the amount calculated above in subsections (C) and (D) or the amount of the participating school's estimated costs for serving the student. The costs of any assessment by the participating school of the student's special needs may be included in the scholarship amount.

(F)    Participating students must be counted in the enrollment of their resident school district. The funds needed to provide a scholarship must be subtracted from the state school aid payable to the student's resident school district.

(G)    The Special Needs Scholarship shall remain in force until the student returns to a public school, graduates from high school, or reaches age twenty-one, whichever comes first.

(H)    At any time, the student's parent may remove the student from the participating school and place the student in another participating school or in a public school.

Section 59-156-340.    (A)    A resident school district shall annually notify the parents of a special needs student of the special needs scholarship program and offer that student's parent an opportunity to enroll the student in a participating school of their choice.

(B)    The resident school district shall provide a participating school that has admitted an eligible student with a complete copy of the student's school records while complying with the federal Family Educational Rights and Privacy Act of 1974.

(C)    The resident school district shall provide transportation for an eligible student to and from the participating school under the same conditions as the resident school district is required to provide transportation for other resident students. The resident school district shall qualify for state transportation aid for each student transported.

(D)    If the parent of an eligible student participating in this program requests that the student take the statewide assessments, the resident school district shall provide locations and times for the student to take all statewide assessments if they are not offered at the student's participating school.

Section 59-156-350.    (A)    The department shall adopt regulations and procedures regarding:

(1)    the eligibility and participation of nonpubic schools, including time lines that maximize student and public and nonpublic school participation;

(2)    the calculating and distribution of scholarships to eligible students and participating schools; and

(3)    the application and approval procedures for eligible students and participating schools.

(B)    No liability shall arise on the part of the department or the State based on the award or use of a special needs scholarship.

(C)    The department may bar a school from participation in the program if the department established that the participating school has intentionally and substantially misrepresented information required under Section 59-156-360 or failed to refund to the state any scholarship overpayments in a timely manner.

(D)    If the department decides to bar a participating school from the program, it shall notify eligible students and their parents of this decision as quickly as possible.

Section 59-156-360.    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 nonpublic schools;

(2)    hold a valid occupancy permit if required by their municipality or county;

(3)    certify that they would not discriminate in admissions on the basis of race, color, national origin, or religion; and

(4)    comply with all state laws that apply to nonpublic schools regarding criminal background checks for employees and exclude from employment individuals not permitted by state law to work in a nonpublic school.

(B)    To ensure that public funds are spent appropriately, all participating schools shall:

(1)    demonstrate their financial accountability by submitting a financial information report for the school that complies with uniform financial accounting standards established by the department and conducted by a certified public accountant, and by having the auditor certify the report is free of material misstatements. The auditor's report must be limited in scope to those records that are necessary for the department to make payments to schools for scholarships;

(2)    demonstrate their financial viability by showing they can pay any funds owed the State, if they are to receive fifty thousand dollars or more during the school year, by filing with the department before the start of the school year a surety bond payable to the State in an amount equal to the aggregate amount of the Special Needs Scholarships expected to be paid during the school year to students admitted to the participating school, or by filing with the department before 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 Special Needs Scholarships expected to be paid during the school year to students admitted to the participating school.

(C)    To ensure that schools provide academic accountability to parents of the students in the program, all participating schools shall regularly report to the parent on the student's progress.

(D)    A participating school is autonomous and not an agent of the state or federal government and as a result:

(1)    the department or any other state agency may not in any way regulate the educational program of a participating school that accepts a Special Needs Scholarship;

(2)    the creation of the Special Needs Scholarship program does not expand the regulatory authority of the State, its officers, or any school district to impose any additional regulation of nonpublic schools beyond those reasonably necessary to enforce the requirements of the program; and

(3)    participating schools must be given the maximum freedom to provide for the educational needs of their students without governmental control.

Section 59-156-370.    (A)    It is the responsibility of a parent to select their child's school, apply for admission, and apply for a Special Needs Scholarship.

(B)    A student participating in the program must comply fully with a participating school's written code of conduct and shall remain in attendance throughout the school year, unless excused by the school for illness or other good cause. However, a parent may transfer an eligible student to another participating school at any time. The scholarship amount must be prorated between participating schools according to the period of attendance at each school.

(C)    A parent's decision for their student to participate in the program constitutes a nonpublic placement for purposes of the federal Individuals With Disabilities Education Act.

Section 59-156-380.    (A)    The Education Oversight Committee shall conduct a study of the program.

(B)    The study shall assess:

(1)    the level of a participating student's satisfaction with the program;

(2)    the level of parental satisfaction with the program;

(3)    the percentage of participating students who were victimized because of their special needs status at their resident school district compared to the percentage victimized at their participating school;

(4)    the percentage of participating students who exhibited behavioral problems at their resident school district compared to the percentage exhibiting behavioral problems at their participating school;

(5)    the class size experienced by participating students at their resident school district and at their participating school; and

(6)    the fiscal impact to the state and resident school districts of the program.

(C)    The public and nonpublic participating schools from which students transfer in order to participate in the program shall cooperate with the research effort by providing student assessment instrument scores and any other data necessary to complete this study."

SECTION    2.    The provisions of Articles 1 and 3, Chapter 156 of Title 59 shall be implemented beginning with 2006-2007 school year.

SECTION    3.    This act takes effect upon approval by the Governor.

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