Arizona’s Commitment to Education Act

AN ACT

AMENDING TITLE 15, CHAPTER 19, ARIZONA REVISED STATUTES, BY AMENDING SECTIONS 15-2401, 15-2402, 15-2403, 15-2404 AND 15-2405; REPEALING SECTIONS 15-2406 THROUGH 15-2412; APPROPRIATING MONIES; RELATING TO TRANSFORMING THE EMPOWERMENT SCHOLARSHIP ACCOUNT PROGRAM INTO A TARGETED STUDENT SAFETY AND EDUCATIONAL CONTINUITY PROGRAM.

Be it enacted by the Legislature of the State of Arizona:

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SECTION 1. SHORT TITLE

This Act shall be known and may be cited as the "Arizona Commitment to Education Act."

SECTION 2. LEGISLATIVE FINDINGS AND DECLARATIONS

The Legislature finds and declares that:

1. Article XI, Section 1 of the Arizona Constitution establishes the legislature's paramount duty to provide for a "general and uniform public school system."

2. The existing Empowerment Scholarship Account program, while well-intentioned, requires substantial reform to ensure constitutional compliance, fiscal accountability, and targeted support for students most in need.

3. Experience with the ESA program demonstrates that universal eligibility without adequate safeguards risks diversion of public funds and insufficient accountability for educational outcomes.

4. Arizona students experiencing documented safety crises or whose specific educational needs cannot be met in their assigned public schools require a targeted, accountable safety net program.

5. Transforming the ESA program into a focused Student Safety and Educational Continuity Program better serves Arizona's constitutional commitments while protecting student welfare.

6. This transformation maintains support for existing ESA participants during a structured transition period while establishing stronger accountability for all future participants.

SECTION 3. TRANSFORMATION OF EMPOWERMENT SCHOLARSHIP ACCOUNT PROGRAM

Title 15, Chapter 19, Arizona Revised Statutes, is amended by:

A. REPEALING §§15-2401, 15-2402, 15-2403, 15-2404 and 15-2405 in their entirety.

B. ENACTING new §§15-2401 through 15-2405 as follows:

§15-2401. STUDENT SAFETY AND EDUCATIONAL CONTINUITY PROGRAM; TRANSFORMATION OF EMPOWERMENT SCHOLARSHIP ACCOUNTS

A. PROGRAM TRANSFORMATION:

1. Effective July 1, 2028, the Empowerment Scholarship Account program established in this chapter is hereby transformed into the Student Safety and Educational Continuity Program.

2. All references in statute, rule, or contract to "Empowerment Scholarship Accounts" or "ESA" shall be construed to refer to the Student Safety and Educational Continuity Program established in this section.

3. The program purposes, eligibility criteria, and accountability measures are fundamentally altered as specified in this section.

B. TRANSITION PROVISIONS FOR EXISTING PARTICIPANTS:

1. GRANDFATHER PERIOD: Current ESA participants as of June 30, 2028 may continue under previous eligibility rules through June 30, 2029, provided they:

a. Submit annual progress reports;

b. Comply with new expenditure controls in subsection G;

c. Agree to participate in program evaluation.

2. PHASED ELIGIBILITY REVIEW: Beginning July 1, 2029, all participants must meet the new eligibility criteria in subsection C or transition out of the program with one final academic year of support.

3. NOTICE REQUIREMENTS: The Department shall provide written notice to all current ESA participants of:

a. Program transformation and new requirements;

b. Transition timeline and options;

c. Available support for meeting new eligibility criteria if applicable.

C. NEW ELIGIBILITY CRITERIA (Effective for new applications July 1, 2028; required for all participants July 1, 2030):

A student qualifies only if meeting ALL criteria:

1. Documented Crisis: Evidence of specific crisis under subsection D;

2. School Unable to Remedy Quickly: Documentation that the public school cannot address the issue within a reasonable timeframe;

3. Educational Disruption Risk: Evidence that delay would significantly disrupt education;

4. Alternative Has Specific Capacity: Any alternative setting has documented ability to address the specific need.

D. CRISIS CATEGORIES:

1. SAFETY CONCERNS:

a. Documented violence, assault, or threats causing physical harm;

b. Persistent, severe bullying despite school intervention;

c. Verified discrimination creating hostile environment;

d. Documentation must include official reports, medical records, or multiple incident reports.

2. SPECIALIZED NEEDS:

a. Active IEP or 504 Plan with specific unmet components;

b. School acknowledgment of inability to provide required services this academic year;

c. Due process finding of failure to provide appropriate education with lengthy remediation timeline.

3. EXTREME CIRCUMSTANCES (Limited to 0.3% of participants):

a. Homelessness with educational instability despite district efforts;

b. Multiple foster care placements despite coordination attempts;

c. Military family emergencies requiring immediate stability.

E. REQUIRED PUBLIC SCHOOL EFFORTS:

1. Families must first work with the public school to address concerns.

2. Schools have 45 days to propose and begin implementing solutions.

3. Eligibility requires school documentation showing either:

a. Inability to implement effective solution this academic year; OR

b. Proposed timeline that would cause significant educational disruption.

F. APPLICATION PROCESS:

1. Online System: Secure portal with document upload and status tracking.

2. Tiered Review:

a. Expedited (10 days): Law enforcement involvement, emergency medical treatment, protective orders.

b. Standard (30 days): All other complete applications.

c. Fast Return (5 days): Incomplete applications returned with specific instructions.

3. Review Committee: Independent panel reviews applications including:

a. Retired hearing officer (chair);

b. Child welfare specialist;

c. Special education expert;

d. School safety coordinator.

G. FUNDING AND EXPENDITURE CONTROLS:

1. Direct Family Assistance: Funds disbursed to verified families through restricted accounts.

2. Approved Expenses Only: Families may only use funds for:

a. Tuition at Arizona public schools, charter schools, or (if specifically approved) other schools that can address the documented need;

b. Specific therapies or services documented as unmet needs;

c. Tutoring to address educational disruption;

d. Curriculum materials from approved vendors;

e. Technology necessary for educational access.

3. Pre-Approved System: All expenses must match pre-approved items from a published list. No unapproved expenses permitted.

4. Approved Vendors: Providers must enroll as approved vendors, meeting state standards for background checks, qualifications, and reasonable pricing.

5. Prohibited Uses: Funds may not be used for:

a. Non-educational items;

b. Cash or cash-equivalents;

c. Religious materials or instruction;

d. Entertainment or recreational items;

e. Clothing except specific uniform requirements.

6. Account Limits: Maximum annual assistance equals 90% of state per-student funding formula amount.

H. PROGRAM CAPS:

1. Total participation limited to 1.5% of statewide public school enrollment.

2. Annual review of caps based on program effectiveness and need.

3. If applications exceed caps, priority goes to most urgent safety situations.

I. ANNUAL REVIEW AND TRANSITION PLANNING:

1. Assistance provided for one academic year only.

2. Renewal requires:

a. Documentation that conditions still exist;

b. Progress report from current educational setting;

c. Transition plan for eventual return to public school.

3. Independent committee must reauthorize each year.

J. PUBLIC SCHOOL SUPPORT AND IMPROVEMENT:

1. Schools receive notification of approved cases (student identity protected) with specific areas needing improvement.

2. Schools must develop improvement plans addressing identified concerns.

3. Technical assistance and support provided to schools implementing improvements.

K. PARTICIPATING SCHOOL STANDARDS:

1. Schools accepting program students must meet equivalent standards to public schools in:

a. Teacher qualifications for core subjects;

b. Health and safety requirements;

c. Civil rights compliance;

d. Financial accountability.

2. Regular review of participating schools to ensure compliance.

3. Schools not meeting standards may be removed from approved list.

L. FRAUD PREVENTION:

1. Real-time monitoring of expenditures for unusual patterns.

2. Required receipt matching for all expenses.

3. Random audits of 15% of accounts annually.

4. Clear consequences for misuse including repayment requirements and potential legal action.

M. FUNDING PROTECTIONS:

1. Program funding shall be appropriated separately and shall not reduce base public school funding.

2. If public school funding falls below constitutional requirements, program funding may be proportionally reduced to prioritize public education.

§15-2402. EXTENDED CONTINUITY FOR STUDENTS WITH COMPLEX NEEDS

[Identical language to previous §15-2401.02 inserted here]

§15-2403. PROGRAM ADMINISTRATION AND SYSTEMS

[Identical language to previous §15-2401.01 inserted here]

§15-2404. SCHOOL IMPROVEMENT SUPPORT FUND

[Identical language to previous §15-2405 inserted here]

§15-2405. INDEPENDENT EVALUATION AND PROGRAM REVIEW

1. The Auditor General shall conduct annual evaluations of program effectiveness, fiscal management, and impact on public schools.

2. Every three years, comprehensive review to determine if program should continue.

3. Program sunsets July 1, 2038 unless reauthorized by Legislature.

C. REPEALING §§15-2406, 15-2407, 15-2408, 15-2409, 15-2410, 15-2411 and 15-2412 (removing universal eligibility provisions).

SECTION 4. CONFORMING AMENDMENTS

A. Throughout Title 15 and other Arizona Revised Statutes, all references to "Empowerment Scholarship Account" or "ESA" shall be construed to mean "Student Safety and Educational Continuity Program" as established in this Act.

B. The following statutes are amended to replace "Empowerment Scholarship Account" with "Student Safety and Educational Continuity Program":

1. §15-242

2. §15-701.01

3. §15-731

4. §15-797

5. §15-1081

6. §15-1082

7. §41-137

SECTION 5. BUDGET TRANSITION

A. FISCAL YEAR 2028-2029 TRANSITION BUDGET:

1. Existing ESA Funding: $X (current ESA appropriation) appropriated for:

a. Grandfathered participants continuing under previous rules;

b. New participants under transformed program criteria;

c. Administrative transition costs.

2. Separate Public School Protection: An additional $X appropriated to ensure no reduction in per-pupil public school funding due to ESA transformation.

B. FISCAL YEAR 2029-2030 AND BEYOND:

1. Program funding capped at amount sufficient for 1.5% of enrollment.

2. Savings from reduced participation redirected to:

a. Public school funding formula;

b. School Improvement Support Fund;

c. Special education capacity building.

SECTION 6. IMPLEMENTATION TIMELINE

A. IMMEDIATE UPON PASSAGE (2027):

1. Rulemaking for new program standards;

2. System development for application portal and expenditure controls;

3. Stakeholder engagement and training;

4. Notice to current ESA participants.

B. TRANSITION YEAR (2028-2029):

1. New applications subject to transformed criteria;

2. Current participants grandfathered under previous rules;

3. Implementation of expenditure controls for all participants;

4. Establishment of Review Committee.

C. FULL TRANSFORMATION (2029-2030):

1. All participants must meet new eligibility criteria;

2. Program caps fully implemented;

3. Enhanced accountability measures operational;

4. Independent evaluation begins.

SECTION 7. APPROPRIATIONS

A. TRANSITION ADMINISTRATION: $5,000,000 in fiscal year 2027-2028 for system development, rulemaking, and participant notification.

B. PROGRAM FUNDING: Beginning fiscal year 2028-2029, annual appropriation sufficient for:

1. Grandfathered participants (decreasing annually);

2. New participants under transformed criteria;

3. School Improvement Support Fund (40% of program funds);

4. Administration and evaluation.

C. PUBLIC SCHOOL FUNDING PROTECTION: Additional appropriation equal to any reduction in public school funding resulting from ESA transformation, guaranteed for five years.

SECTION 8. SEVERABILITY

If any provision is invalidated, remaining provisions continue to maximum extent possible, with priority given to maintaining transformed eligibility criteria and accountability measures.

SECTION 9. RETROACTIVITY

This Act applies retroactively to the extent necessary to ensure no new universal ESA enrollments occur after June 30, 2028.

SECTION 10. EFFECTIVE DATE

Sections 1-9 of this Act are effective July 1, 2028, except that rulemaking authority and planning provisions are effective immediately upon passage.