Mo. Code Regs. tit. 15 § 50-5.020

Current through Register Vol. 49, No. 24, December 16, 2024

Section 15 CSR 50-5.020 - Missouri Empowerment Scholarship Accounts Program

PURPOSE: This rule establishes procedures for the operation of the Missouri Empowerment Scholarship Accounts Program (the program), specifies responsibilities of the treasurer in administering and monitoring the program, describes the rights and responsibilities of the treasurer, his or her staff, educational assistance organizations, parents, beneficiaries, and any third party designated by the treasurer to carry out services under the program, and is intended to ensure the program conforms with federal and state statutes and regulations.

(1) Definitions.

(A) Existing Missouri Definitions. The following terms, as used in this rule, are defined in section 135.712, RSMo: educational assistance organization, parent, program, scholarship account, taxpayer. The following terms, as used in this rule, are defined in section 166.700, RSMo: curriculum, district, private school, qualified school, qualified student. The following term, as used in this rule, is defined in section 135.715, RSMo: qualifying contribution.

(B) Additional Definitions. The following definitions shall also apply to the following terms as they are used in this rule:

1. "501(c)(3) organization" means an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of the Internal Revenue Code;

2. "Ownership" means the authority to act on behalf of the qualified student and make decisions regarding the qualified student's scholarship account;

3. "Parent" means a parent, as that term is defined in section 135.712.2(2), RSMo, who has entered into a written participation agreement with an educational assistance organization for the payment of educational expenses on behalf of a qualified student;

4. "Person" means any individual, estate, association, trust, partnership, limited liability company, corporation, the state of Missouri or any department thereof, or any political subdivision of the state of Missouri;

5. "School year" means the period that commences on the first day of July and ends on the thirtieth day of the following June;

6. "Semester" means a half-year term of a school year, no less than twelve (12) weeks in duration;

7. "State fiscal year" means the period that commences on the first day of July and ends on the thirtieth day of the following June;

8. "Statutes" means sections 135.712 through 135.719, RSMo, and sections 166.700 through 166.720, RSMo;

9. "Tax credits" means Missouri Empowerment Scholarship Accounts Program tax credits authorized under the program;

10. "Taxpayer" means the entity or individual that makes a qualifying contribution for purposes of claiming a tax credit; and

11. "Vendor" means every person or entity engaged in the business of selling products or services to a scholarship recipient which will be paid for with proceeds from an empowerment scholarship account, or who would for any reason receive funds as a result of any distribution from an empowerment scholarship account.

(2) Purpose. The purpose of the program is to promote educational opportunities and improve the quality of educational services to ensure all children receive the high-quality education to which they are entitled.

(3) Program Administration and Management. The program shall be administered and managed in compliance with the statutes and promulgated rules. Procedures and forms for use in the administration and management of the program shall be subject to the approval of the treasurer. If the treasurer designates a third party to assist or act with respect to the administration and management of the program, the references herein to the treasurer shall govern such a designee.

(4) Qualified Schools.

(A) All schools other than home schools. A public school, charter school, private school, or a public or private virtual school, shall satisfy the following requirements to be considered a qualified school:

1. Full accreditation by the Department of Elementary and Secondary Education or a nationally recognized education accrediting association. A list of approved nationally recognized education accrediting associations will be made available on the treasurer's official website; and

2. Approval from one (1) or more certified educational assistance organizations.

(B) Home schools. Any prospective student that will attend a home school, as defined in section 167.031, RSMo, shall submit to an educational assistance organization as part of his or her completed qualified student application a home school certification application. In addition to certifying that the home school complies with all provisions found in section 167.031.2(1), RSMo, the home school shall certify that it will:

1. Agree to not pay, share, refund, or rebate any MO Scholars account funds in any manner with the parent, qualified student, or any other individual within three (3) degrees of consanguinity to the qualified student;

2. Submit a proposed curriculum plan, or, provide the records required to be maintained pursuant to section 167.031.2(2)(a), RSMo;

3. Provide the state treasurer's office with an authorization to conduct a review of the criminal history records maintained by the Missouri State Highway Patrol in the Missouri criminal records repository for every adult who resides in the home school, if the home school is given initial approval from an educational assistance organization; and

4. When requested, produce the records required to be maintained under section 167.031.2(2)(a), RSMo.

A. Within fifteen (15) days of receipt of a completed qualified student application and home school certification, the educational assistance organization shall provide the treasurer an initial approval in accordance with the criteria set forth above, unless granted an extension by the treasurer or the educational assistance organization determines a denial is necessary.

B. Upon receipt of a home school certification that has received initial approval from an educational assistance organization, the treasurer shall conduct a review of the criminal history records maintained by the Missouri State Highway Patrol in the Missouri criminal records repository for every adult who resides in the home school, and notify the parent and the educational assistance organization that the home school certification application has received final approval or denial.

5. When requested, produce the records required to be maintained under section 167.031.2(2)(a), RSMo; and

6. Provide any other information as requested by the treasurer.

B. Within fifteen (15) days of receipt of a home school certification that has received initial approval from an educational assistance organization, the treasurer shall notify the parent and the educational assistance organization that the home school certification application has received final approval or denial.

(5) Information Sharing with the Department of Elementary and Secondary Education. The treasurer and educational assistance organizations are required to provide necessary information to the Department of Elementary and Secondary Education (DESE) to allow federal and state aid to continue to the school in the qualified student's resident school district previously attended. An educational assistance organization shall provide all approved eligible student applications to DESE within forty-five (45) days of approval. This provision terminates on July 1, 2027.

(6) Violations of Program Provisions. If the treasurer determines that any parent, eligible student, or vendor has committed an intentional program violation consisting of any misrepresentation or other act that materially violates any law or promulgated rule, the treasurer may disqualify the offending party from the program. In such a case, the treasurer shall notify the parent, eligible student, or vendor in writing of the grounds for the proposed disqualification and provide the party an opportunity to respond to the allegations in writing. A parent may request a hearing conducted in accordance with the provisions of Chapter 536, RSMo, and may appeal the administrative hearing commission's decision to the circuit court of the county in which the student resides. Disqualification of a parent, eligible student, or vendor by the treasurer shall not be a prerequisite nor a substitute for any other civil or criminal causes of action to which such party may otherwise be subject but is in addition to such possible remedies. Any information obtained or compiled by the treasurer in determining whether to disqualify a parent, eligible student, or vendor may be disclosed to appropriate law enforcement agencies, in any investigation, action, or proceeding, civil or criminal, brought by a governmental agency to enforce the laws of this state or upon court order in any action or proceeding where such information is material to an issue in the action or proceeding. After a twelve (12) month waiting period immediately following a disqualification, any parent, eligible student, or vendor may thereafter re-apply to participate in the program in accordance with the applicable laws governing eligibility and participation in the program. The state treasurer's office shall evaluate the reapplication of any program participant who has been previously suspended. Any funds remaining in the scholarship account of a parent or eligible student who has been disqualified from the program shall be returned to the educational assistance organization to be redistributed to other qualified students for scholarship accounts.

(7) Severability. If any provision of this rule, or the application of it to any person or circumstance, is determined to be invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions of this rule which can be given effect without the invalid provision or application, and to that end, the provisions of this rule are severable.

15 CSR 50-5.020

Adopted by Missouri Register May 16, 2022/Volume 47, Number 10, effective 4/25/2022

Amended by Missouri Register June 15, 2022/Volume 47, Number 12, effective 7/31/2022