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2024 SESSION

24102023D
SENATE BILL NO. 421
Offered January 10, 2024
Prefiled January 9, 2024
A BILL to amend the Code of Virginia by adding in Chapter 13 of Title 22.1 an article numbered 2.1, consisting of sections numbered 22.1-222.1 through 22.1-222.4, relating to Foster Child Scholarship Program; established.
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Patron-- Sturtevant
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Referred to Committee on Education and Health
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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 13 of Title 22.1 an article numbered 2.1, consisting of sections numbered 22.1-222.1 through 22.1-222.4, as follows:

Article 2.1.
Foster Child Scholarship Program.

§ 22.1-222.1. Definitions.

As used in this article:

"Caregiver" means any parent, guardian, legal custodian, or other person having control or charge of a child, including any foster parent.

"Eligible student" means a child (i) who is a foster child; (ii) who is deemed to reside in a school division pursuant to subsection A of § 22.1-3; (iii) for whom compulsory attendance is required pursuant to subsection A of § 22.1-254; and (iv) who is entering kindergarten or was eligible to enroll at a public elementary or secondary school in the Commonwealth during the semester immediately preceding the semester or term for which the child's caregiver initially applies for the Foster Child Scholarship Program or who is entering kindergarten.

"Foster child" means a child who, at the time of initial application for the Foster Child Scholarship Program, is in foster care or custody of a social service agency, as supported by documentation from the Department of Social Services.

"Foster child scholarship account" or "FCSA" means the account to which funds are allocated by the Department to the caregiver of an eligible student to pay a participating school for education-related expenses in accordance with the requirements and conditions in this article.

"Participating school" includes any public school outside the resident school division or any private elementary or secondary school that is accredited pursuant to § 22.1-19 and has notified the Department of its intention to participate in the Program and comply with the Program's requirements.

"Program" means the Foster Child Scholarship Program.

"Resident school division" means the school division in which an eligible student resides.

§ 22.1-222.2. Foster Child Scholarship Program; established.

A. The Foster Child Scholarship Program is established for the purpose of providing school-age children in foster care with the option to attend the participating school of their caregiver's choice.

B. The Department shall establish, with the assistance of each school board and the Department of Social Services, the Program. In establishing the Program, the Department shall:

1. Create a standard application form by which the caregiver of an eligible student can apply for participation in the Program;

2. Establish policies and procedures for the application process, including deadlines and participation timelines that maximize eligible student and resident school division participation and procedures for reviewing and approving applications;

3. Adopt policies and procedures for the administration and oversight of the Program, in accordance with § 22.1-222.4; and

4. Develop, make available to each local school division, and post in a publicly accessible location on its website informational materials on the Program to increase public awareness of the Program and ensure that interested caregivers of eligible students are aware of the Program and how to apply.

§ 22.1-222.3. Foster Child Scholarship Program; eligibility; application; conditions and requirements.

A. Any caregiver of an eligible student shall qualify for a scholarship under the Program if the caregiver submits an application for such Program in compliance with the application deadlines and procedures established by the Department pursuant to subsection B of § 22.1-222.2 and signs an agreement to:

1. Not enroll the eligible student in any public school in such student's resident school division for the duration of the period for which such eligible student would receive a scholarship under the Program;

2. If such student receives special education pursuant to an individualized education plan (IEP), release the resident school division from all obligations to educate the eligible student in acknowledgement that receipt of a scholarship under the Program has the same effect of enrollment of such student by his caregiver in private school under 20 U.S.C. § 1412(a)(10) of the Individuals with Disabilities Education Act;

3. Acknowledge that scholarship funds deposited into the eligible student's FCSA are payable only to a participating school and use scholarship funds only for education-related expenses for services provided by a participating school or provided by a third party pursuant to a contract with a participating school, including: (i) tuition or fees at a private school that is accredited pursuant to § 22.1-19; (ii) tutoring services; (iii) textbooks, curriculum, or other instructional materials; (iv) computer hardware or software, technological applications, or other technological devices that are primarily used to help meet an eligible student's educational needs; (v) school uniforms; (vi) extracurricular activities or programs; (vii) educational services or therapies, including occupational, behavioral, physical, speech-language, and audiology therapies; (viii) transportation; and (ix) any other educational expense approved by the Department;

4. Notify the resident school division in writing within 30 days of the date on which the eligible student ceases to reside in the resident school division or such student enrolls full time in a public school in such student's resident school division and acknowledge that either action shall result in an immediate suspension of the disbursement of the scholarship into such eligible student's FCSA until the eligible student's caregiver submits an updated application to the Department reestablishing eligibility for the Program;

5. Submit a quarterly expense summary, in the form prescribed by the Department and containing such provisions as prescribed by the Department, for education-related expenses pursuant to subdivision 3 that were incurred prior to or during such quarter, including all applicable invoices and receipts, to the resident school division prior to receiving a savings account disbursement for the subsequent quarter. Each resident school division shall determine, on the basis of policies and procedures established by the Department, the appropriateness of such expenses on the basis of such receipts and invoices prior to making a savings account disbursement for the subsequent quarter or renewing the written agreement;

6. Submit to audits of the savings account; and

7. Comply with any other terms, conditions, or regulations established by the Department.

B. Any eligible student, upon approval of an application submitted by his caregiver pursuant to subsection A, shall qualify for an annual scholarship, disbursed in quarterly installments into an FCSA by the Department, in an amount equal to the lesser of:

1. The participating school's annual per pupil instructional and operational costs; or

2. The dollar amount of all applicable annual Standards of Quality per pupil state funds appropriated for public school purposes and apportioned to the resident school division in which the qualified student resides, including the per pupil share of state sales tax funding in basic aid and any per pupil share of special education funding to which the eligible student is eligible.

C. The caregiver of the eligible student shall decide which participating school to enroll such student in at the time of enrollment. An eligible student shall retain Program eligibility until his graduation from high school or until he reaches 21 years of age, whichever comes first, regardless of subsequent placement out of the foster care system. An eligible student participating in the Program who subsequently exits the foster care system shall remain eligible for the Program for one additional school year after the school year in which he exited the foster care system, after which quarterly disbursements into such student's FCSA will cease.

D. An FCSA shall remain in force, and any unused funds shall roll over from quarter to quarter and from year to year, until (i) the eligible student graduates from high school or reaches 21 years of age, whichever comes first, regardless of subsequent placement out of the foster care system, upon which any funds remaining in the FCSA shall revert to the Commonwealth or (ii) one school year has passed since an eligible student's caregiver, pursuant to subdivision A 4, notified the resident school division that the eligible student ceased to reside in the resident school division or enrolled full time in a public school in such student's resident school division, and the caregiver did not submit an updated application to the Department reestablishing eligibility for the Program within that school year, upon which any funds remaining in the FCSA shall revert to the Commonwealth.

E. FCSA funds shall not be refunded to, rebated to, or shared with a caregiver or eligible student in any manner. Any refund or rebate for goods or services purchased with FCSA funds shall be credited directly to the student's FCSA. Any caregiver may make payments for the costs of educational goods and services not covered by the funds in their student's FCSA. However, no caregiver or other individual shall make personal deposits into an FCSA.

§ 22.1-222.4. Administration of Program; duties and responsibilities of the Department; school boards; participating schools.

A. The Department shall be responsible for the administration of the Program. In administering the Program, the Department shall:

1. Annually compile and make available to eligible students, caregivers, the Department of Social Services, local school divisions, and other public and private entities involved in foster care services and issues a list of participating schools;

2. Establish, in consultation with the Auditor of Public Accounts, standards for participating schools and standards for individual FCSAs related to administrative, financial, and academic accountability and procedures for ensuring compliance with such standards;

3. Receive contributions for the Program and deposit or disburse scholarship funds in quarterly installments to the FCSA of each eligible child participating in the Program pursuant to subsection B of § 22.1-222.3;

4. Provide caregivers with a written explanation of the allowable uses of FCSA funds, the responsibilities of caregivers, the duties of the Department, and the role of any private financial management firms or other private organizations with which the Department may contract to carry out all or any portion of the Program;

5. Contract with private institutions to develop and implement a commercially viable, cost-effective, and caregiver-friendly system for payment of services from FCSA's to education service providers by electronic or online funds transfer. The Department shall not adopt a payment system that relies exclusively on requiring caregivers to be reimbursed for out-of-pocket expenses but rather shall provide maximum flexibility to caregivers by facilitating direct payments to education service providers and requests for pre-approval of and reimbursements for qualifying expenses;

6. Establish procedures to ensure that a fair process exists to determine whether a participating school shall be barred from receiving payments from FCSAs. The Department may bar a participating school from receiving payments from FCSAs if the Department determines that the participating school has (i) intentionally and substantially misrepresented information or failed to refund any overpayments in a timely manner or (ii) routinely failed to provide students with promised educational goods or services. If the Department bars a participating school from receiving payments from FCSAs, it shall notify caregivers and eligible students of its decision as quickly as possible. Any participating school may appeal the Department's decision to bar it from receiving payments from FCSAs; and

7. Conduct random audits of FCSAs on an annual basis. The Department may audit or contract for the auditing of additional individual FCSAs.

B. The Department may:

1. Declare any caregiver or eligible student ineligible for the Program in the event of intentional and substantial misuse of FCSA funds, provided that it has established procedures to ensure that a fair process exists to determine whether an intentional and substantial misuse of FCSA funds has occurred, including an opportunity for the caregiver or eligible student to appeal such a declaration of ineligibility. The Department may also refer suspected cases of intentional and substantial misuse of FCSA funds to the Office of the Attorney General for investigation if evidence of fraudulent use of FCSA funds is obtained;

2. Accept gifts and grants from any source to cover administrative costs of the Program, inform the public about the Program, or fund additional FCSAs; and

3. Adopt such other policies and procedures as necessary for the implementation and administration of the Program.

C. A participating school shall accept eligible students participating in the Program for admission on a first-come, first-served basis until the school reaches its capacity for new enrollments in that school year. If an eligible student is denied admission to his caregiver's first choice of participating school as a result of insufficient enrollment capacity, his caregiver may choose another participating school with sufficient enrollment capacity at which such student shall be enrolled and to which such student's scholarship shall be transferred.

D. No later than November 1 of each year, each division superintendent shall certify and report to the Superintendent the number of eligible students in the school division whose caregivers have received an FCSA and the amount of funds transferred to each such FCSA and retained savings. No later than December 15 of each year, the Superintendent shall report to the Governor and the Chairs of the House Committee on Appropriations and Senate Committee on Finance and Appropriations the name of each school division in which the caregiver of an eligible student has received an FCSA, the number of eligible students whose caregivers have received an FCSA, and the total Standards of Quality state funding transferred to FCSAs and retained savings.