§4037.6. Account funds

            A. The department, on a quarterly basis, shall allocate funds, in an amount determined by the state board, to each account from funds appropriated or otherwise made available for the program.

            B.(1) The amount allocated to an account shall be prorated if a student transfers into the program after the beginning of a school year.

            (2) If a participating school or service provider requires partial payment of tuition or fees prior to the start of the school year to reserve space for a student, the department may make the partial payment prior to the start of the school year and deduct the amount from subsequent quarterly account deposits to ensure that adequate funds remain available throughout the school year; however, if the parent decides not to use the school or service provider, the school or service provider shall return the partial reservation payment to the department which shall credit the amount to the account.

            C. The department shall implement a system for parents to direct funds from accounts to participating schools and service providers for qualified education expenses by electronic or online funds transfer. The system shall also allow parents to publicly rate, review, and share information about participating schools and service providers.

            D.(1) Account funds shall be used only for qualified education expenses for the participating student. Funds in a student's account that are not used in a given school year shall be retained in the account for future use.

            (2) The department shall continue to allocate funds to an account until any of the following occurs, at which point the account shall be closed and funds returned to the state general fund:

            (a) The parent enrolls the student full-time in a public school.

            (b) The department determines that a parent has failed to comply with the provisions of this Chapter or state board rules pertaining to the program, including but not limited to a determination that the parent has misused account funds.

            (c) The parent withdraws the student from the program.

            (d) The student graduates from high school.

            (e) The account has been inactive for two consecutive years unless inactivity is due to lack of available funding for accounts.

            E. No account funds shall be refunded, rebated, or shared with a parent or student in any manner. Any rebate or refund for goods or services purchased with account funds shall be credited directly to the account.

            Acts 2024, No. 1, §1, eff. July 1, 2024.