govt.fyi
Back to SB 625
Arkansas General Assembly· SB 625Notification that SB625 is now Act 920

An act TO AMEND PROVISIONS OF THE ARKANSAS CODE 10 CONCERNING THE ARKANSAS CHILDREN'S EDUCATIONAL 11 FREEDOM ACCOUNT PROGRAM, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas          As Engrossed: S4/9/25 H4/15/25
2 95th General Assembly
                                      A Bill

3 Regular Session, 2025                                            SENATE BILL 625

4

5 By: Senator B. Davis

6 By: Representative Brooks

7

8                             For An Act To Be Entitled

9              AN ACT TO AMEND PROVISIONS OF THE ARKANSAS CODE

10             CONCERNING THE ARKANSAS CHILDREN'S EDUCATIONAL

11             FREEDOM ACCOUNT PROGRAM; TO DECLARE AN EMERGENCY; AND

12             FOR OTHER PURPOSES.

13

14

15                                        Subtitle

16                       TO AMEND PROVISIONS OF THE ARKANSAS CODE

17                       CONCERNING THE ARKANSAS CHILDREN'S

18                       EDUCATIONAL FREEDOM ACCOUNT PROGRAM; AND

19                       TO DECLARE AN EMERGENCY.

20

21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

22

23  SECTION 1. Arkansas Code � 6-18-2503(11), concerning the definition of

24 "qualifying expenses" under the Arkansas Children's Educational Freedom

25 Account Program, is amended to read as follows:

26             (11) "Qualifying expenses" means expenses that include the

27 following:

28                       (A)(i) For the 2023-2024 school year, "qualifying

29 expenses" shall include:

30                       (a)(A) Tuition;

31                       (b)(B) Fees;

32                       (c)(C) The cost of testing under this subchapter;

33                       (d)(D) The cost of required school uniforms, if any, at a

34 participating school; and

35                       (E) Reasonable costs associated with co-curricular courses

36 in the fine arts, music, or STEM fields if the co-curricular course is

    *TNL380*                                                 04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                          SB625

1 offered by a public school within the state;

2            (e)(F) Expenses determined by a participating school to be

3 necessary for the education of a participating student and required to be

4 paid by a participating student who is enrolled in the participating school,

5 including without limitation expenses related to:

6                         (1)(i) Supplies;

7                         (2)(ii) Equipment; and

8                         (3)(iii) Access to technology; and

9                         (4) Services provided by or at the participating

10 school.;

11           (ii) "Qualifying expenses" shall not mean optional

12 expenses payable to a third party; and

13           (B) Beginning with the 2024-2025 school year and each

14 year thereafter, "qualifying expenses" shall include those listed under

15 subdivision (11)(A) of this section and include the following:

16           (i)(G) Instructional materials required for either in-

17 person or virtual instruction provided by a participating service provider or

18 participating school;

19           (ii)(H) Instructional or tutoring services;

20           (iii)(I) Curriculum;

21           (iv)(J) Supplemental materials or supplies required by a

22 course of study for a particular content area;

23           (v)(K) Fees for:

24                        (a)(i) Courses and associated examinations for

25 college credit; and

26                        (b)(ii) Any examination related to postsecondary

27 educational institution admission;

28           (vi)(L) Fees for:

29                        (a)(i) Courses and associated examinations for

30 career training; and

31                        (b)(ii) Any examination required in order to obtain

32 an industry-based credential;

33           (vii)(M)(i) Educational services provided by a licensed or

34 accredited practitioner or participating service provider to a participating

35 student who is a student with a disability.

36                        (ii) Educational services provided under subdivision

                                       2             04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                           SB625

1 (11)(M)(i) of this section may be provided in a nontraditional setting that

2 has been recommended and approved by a licensed or accredited practitioner or

3 physician for a participating student who is a student with a disability;

4            (viii)(N) Fees for account management by participating

5 service providers;

6            (ix)(a)(O)(i) Technological devices used to meet a

7 participating student's educational needs, which shall not include:

8                             (1)(a) A television;

9                             (2)(b) A video game console or accessory; or

10                            (3)(c) Home theater or audio equipment; or

11                            (d) A telephone, cell phone, or other

12 communication device unless the telephone, cell phone, or other communication

13 device is for a student with a disability who is unable to communicate

14 through other means or is required as part of an academic modification as

15 specified by a clinician.

16                    (b)(ii) Technological devices under subdivision

17 (11)(B)(ix)(a) (11)(O)(i) of this section are subject to approval by the

18 Department of Education or a licensed physician;

19           (x) Costs (P) Reasonable costs, not to exceed twenty-five

20 percent (25%) of the funds allocated to a student's account in a fiscal year,

21 that are associated with transportation to and from a participating service

22 provider or participating school; and

23           (Q) Reasonable costs, not to exceed twenty-five percent

24 (25%) of the funds allocated to a student's account in a fiscal year, for

25 extracurricular activities, physical education activities, or educational

26 field trips that occur within the State of Arkansas; and

27           (xi)(R) Any other educational expense approved by the

28 Division of Elementary and Secondary Education.

29

30  SECTION 2. Arkansas Code � 6-18-2503, concerning the definition of

31 "qualifying expenses" under the Arkansas Children's Educational Freedom

32 Account Program, is amended to add additional subdivisions to read as

33 follows:

34           (12) "Course" means a discrete program of study that follows a

35 predetermined syllabus or specification;

36           (13) "Completed student application" means:

                                    3                04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                           SB625

1                    (A) A fully finished online application that includes all

2 required fields completed and all applicable documentation attached to the

3 application for the Department of Education to determine the potential award

4 status of an applicant; or

5                    (B) A fully finished paper application that:

6                    (i) Includes all required fields completed and all

7 applicable documentation attached to the application for the department to

8 determine the potential award status of an applicant; and

9                    (ii) Bears a postmark indicating that it was placed

10 in transit with the United States Postal Service or other common carrier

11 before the application deadline; and

12  (14) "School year" means the duration of school from July 1

13 through June 30.

14

15  SECTION 3. Arkansas Code � 6-18-2505(b)-(f), concerning account funds

16 under the Arkansas Children's Educational Freedom Account Program, are

17 amended to read as follows:

18  (b)(1) For the 2023-2024 school year, on On behalf of participating

19 students enrolled in participating schools or with participating service

20 providers and at the direction of a participating student's parent, the

21 Department of Education shall make four (4) equal payments in quarterly

22 installments disbursements from the participating student's account to the

23 participating school or participating service provider in which the

24 participating student is enrolled for tuition, fees, and costs associated

25 with testing and uniforms qualifying expenses.

26  (2) The department may:

27                   (A) Contract with a vendor or provider to manage the

28 payment system used for purposes of implementing this subsection; and

29                   (B) Withhold up to five percent (5%) of funds allocated

30 for each account annually for the administration of the Arkansas Children's

31 Educational Freedom Account Program.

32  (c) For the 2023-2024 school year, if a participating student is

33 enrolled full-time in a participating school or with a participating service

34 provider and the total amount of tuition, fees, testing, and uniform costs is

35 less than the amount determined under subsection (a) of this section, the

36 amount allocated to the student shall be the lesser amount.

                                    4              04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                          SB625

1   (d) Account funds shall:

2              (1)(A) Not be refunded, rebated, or shared with a parent or

3 participating student in any manner.

4                   (B) Any refund or rebate for goods or services purchased

5 with account funds shall be credited directly to the participating student's

6 account; and

7              (2) Be used only for qualifying education expenses for a

8 participating student.

9   (e)(1)(d)(1) Beginning with the 2024-2025 school year and each year

10 thereafter, the The department shall develop a system for parents to direct

11 account funds to participating schools and participating service providers by

12 electronic funds transfer, automated clearinghouse transfer, debit card, or

13 another system.

14             (2) The department may:

15                  (A) Contract with a vendor or provider, including without

16 limitation a private institution, to manage the payment system used for

17 purposes of implementing this subsection; and

18                  (B) Withhold up to five percent (5%) Permit a vendor,

19 pursuant to contract, to withhold up to two percent (2%) of funds allocated

20 for each account annually for the administration of the Arkansas Children's

21 Educational Freedom Account Program.

22             (3) The department shall:

23                  (A) Not adopt a payment system under this subsection that

24 relies exclusively on requiring parents to be reimbursed for out-of-pocket

25 expenses; and

26                  (B) Ensure a payment system developed under this

27 subsection provides maximum flexibility to parents by facilitating direct

28 payments to participating service providers and requests for preapproval of

29 and reimbursements for qualifying expenses.

30  (f)(1)(e)(1)(A) An account shall remain in force, and any unused funds

31 shall roll over from quarter-to-quarter and from year-to-year, until one (1)

32 or more of the following occurs:

33                  (A)(i) A parent withdraws his or her participating student

34 from the program Arkansas Children's Educational Freedom Account Program;

35                  (B)(ii) A participating student graduates from high

36 school; or

                                     5            04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                          SB625

1                   (C)(iii) The end of the school year if a participating

2 student turns twenty-one (21) years of age, whichever occurs first during the

3 school year;

4                   (iv) A participating student is expelled from a

5 participating school; or

6                   (v) A participating student is otherwise rendered

7 ineligible to participate in the Arkansas Children's Educational Freedom

8 Account Program.

9                   (B) If a participating student's account is closed

10 following the occurrence of an event under subdivision (e)(1)(A)(iv) or

11 (e)(1)(A)(v) of this section, the participating student's parent may appeal

12 the division's decision to close the participating student's account to the

13 state board according to rules promulgated by the state board.

14         (2) An account shall be closed before an event occurs under

15 subdivision (f)(1) (e)(1) of this section if the State Board of Education

16 finds:

17                  (A) A substantial Evidence of intentional misuse of

18 account funds according to rules promulgated by the division; or

19                  (B) That a parent has failed to comply with this

20 subchapter or state board rules governing the Arkansas Children's Educational

21 Freedom Account Program.

22         (3)(A) Any unused funds shall revert to the division and be

23 allocated to fund other accounts.

24                  (B) The division may pursue the collection of account

25 funds when evidence of intentional misuse of account funds according to rules

26 promulgated by the division has been shown through all means permitted by

27 law.

28                  (B)(i)(C)(i) There shall be a maximum amount of funds

29 allowed to remain in each participating student's account.

30                  (ii) The state board may establish rules to

31 determine the:

32                           (a) Maximum amount of funds allowed under

33 subdivision (f)(3)(B)(i) (e)(3)(C)(i) of this section; and

34                           (b) Process by which account funds will be

35 returned to the appropriate fund within the department.

36

                                      6  04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                           SB625

1          SECTION 4. Arkansas Code � 6-18-2505, concerning account funds under

2 the Arkansas Children's Educational Freedom Account Program, is amended to

3 add an additional subsection to read as follows:

4          (k)(1)(A) The division shall provide a time frame for the submission

5 of applications under this subchapter that shall begin for the initial

6 application period no sooner than February 1 and finish no later than June 1

7 for an upcoming school year.

8           (B) The division shall promulgate rules for an applicant

9 who meets criteria established by the division and who submits an application

10 under this subchapter outside the time frame established by subdivision

11 (k)(1)(A) of this section, including without limitation an applicant who

12 moves:

13          (i) To this state from another state; or

14          (ii) From an area of this state that does not have a

15 participating school to an area of this state that does have a participating

16 school.

17 (2) At the time of submitting a completed student application,

18 an applicant shall indicate whether he or she will attend a private school or

19 file a notice of intent to home school.

20          (3) If an applicant changes from one (1) participating school to

21 another participating school, the applicant shall not be entitled to any

22 increase in funding under this subchapter.

23

24         SECTION 5. Arkansas Code � 6-18-2506 is amended to read as follows:

25         6-18-2506. Student eligibility -- Initial and continuing.

26         (a) A Beginning with the 2025-2026 school year, a student is initially

27 eligible for an account if the student:

28          (1) Has a parent who is a resident of the State of Arkansas as

29 defined by � 6-18-202; and

30          (2) Is eligible to enroll in a public elementary or secondary

31 school in this state; and.

32          (3) Meets the following criteria:

33          (A)(i) For the 2023-2024 school year, a student shall be

34 eligible if the student is at least one (1) of the following:

35                              (a) A student with a disability identified

36 under the Individuals with Disabilities Education Act, 20 U.S.C. � 1400 et

                                    7               04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                           SB625

1 seq., as it existed on January 1, 2023;

2                               (b) A student who is considered homeless under

3 the McKinney-Vento Homeless Assistance Act, 42 U.S.C. � 11431 et seq., as it

4 existed on January 1, 2023;

5                               (c) A foster child or a former foster child;

6                               (d)(1) A student who is currently

7 participating in the Succeed Scholarship Program, � 6-41-901 et seq.

8 [repealed].

9                                   (2) A student who participated in the

10 Succeed Scholarship Program during the 2022-2023 school year and elects to

11 enroll in the Arkansas Children's Educational Freedom Account Program under

12 this subchapter shall receive one hundred percent (100%) of the prior year's

13 statewide foundation funding amount allotted per student under � 6-20-2305

14 until:

15                                           (A) The participating student

16 graduates from high school;

17                                           (B) The participating student

18 receives a certificate of completion; or

19                                           (C) An event that requires an

20 account to be closed under � 6-18-2505(f)(1) or � 6-18-2505(f)(2) occurs;

21                              (e) A child of active-duty uniformed service

22 personnel, as identified under Title 10, Title 32, Title 33, or Title 42 of

23 the United States Code;

24                              (f) A student who was enrolled in the previous

25 school year in a:

26                                  (1) Public school that has a rating of

27 "F" under �� 6-15-2105 and 6-15-2106 and State Board of Education rules; or

28                                  (2) Public school district classified as

29 in need of Level 5 -- Intensive support under � 6-15-2913 or � 6-15-2915; or

30                              (g) A student who is enrolling in kindergarten

31 for the first time.

32                              (ii)(a) For the 2023-2024 school year, a

33 maximum of one and five-tenths percent (1.5%) of the 2022-2023 total public

34 school student enrollment may be approved to participate in the Arkansas

35 Children's Educational Freedom Account Program.

36                              (b) However, the number of students approved

                                    8               04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                         SB625

1 to participate in the Arkansas Children's Educational Freedom Account Program

2 under subdivision (a)(3)(A)(ii)(a) of this section shall not exceed the

3 amount of funds made available for the Arkansas Children's Educational

4 Freedom Account Program;

5               (B)(i) For the 2024-2025 school year, student eligibility shall

6 expand to include students who meet at least one (1) of the following:

7                           (a) All students who are eligible under subdivision

8 (a)(3)(A) of this section;

9                           (b) Students who were enrolled in the prior school

10 year in public schools rated "D" or "F" under �� 6-15-2105 and 6-15-2106 and

11 state board rules; and

12                          (c) Students whose parents are:

13                            (1) Veterans as identified under Title 38 of

14 the United States Code;

15                            (2) In the uniformed service reserve

16 components;

17                            (3) First responders; or

18                            (4) Law enforcement officers.

19                          (ii)(a) For the 2024-2025 school year, a maximum of

20 three percent (3%) of the 2022-2023 total public school student enrollment

21 may be approved to participate in the Arkansas Children's Educational Freedom

22 Account Program.

23                          (b) The number of students approved to participate

24 in the Arkansas Children's Educational Freedom Account Program under

25 subdivision (a)(3)(B)(ii)(a) of this section shall:

26                            (1) Include any students who are continuing to

27 participate in the Arkansas Children's Educational Freedom Account Program

28 from the 2023-2024 school year; and

29                            (2) Not exceed the amount of funds made

30 available for the Arkansas Children's Educational Freedom Account Program;

31 and

32                   (C)(i) For the 2025-2026 school year and each year

33 thereafter, any resident of this state who is eligible to enroll in a public

34 elementary or secondary school shall be eligible.

35                          (ii) Beginning with the 2025-2026 school year, there

36 shall be no limitation on student participation in the Arkansas Children's

                                        9               04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                       SB625

1 Educational Freedom Account Program.

2   (b) In any year in which funds are insufficient to fund all

3 applications for new accounts, first priority shall be given to students who

4 are eligible under subdivision (a)(3)(A) of this section, followed by

5 students eligible under subdivision (a)(3)(B) of this section Beginning with

6 the 2025-2026 school year and each year thereafter, for any year in which

7 funds are insufficient to fund all applications for new accounts under this

8 subchapter, priority shall be given according to the following schedule by

9 category first and then by submission time of a completed student

10 application:

11           (1) A student who participated in the Arkansas Children's

12 Educational Freedom Account Program during the previous school year;

13           (2) A student who participated in the Succeed Scholarship

14 Program during the 2022-2023 school year;

15           (3) A student with a disability identified under the Individuals

16 with Disabilities Education Act, 20 U.S.C. � 1400 et seq., as it existed on

17 January 1, 2025;

18           (4) A student who is considered homeless under the McKinney-

19 Vento Homeless Assistance Act, 42 U.S.C. � 11431 et seq., as it existed on

20 January 1, 2025;

21           (5) A foster child;

22           (6) A student who was enrolled in the previous school year in a

23 public school that has a rating of "D" or "F" under �� 6-15-2105 and 6-15-

24 2106 and State Board of Education rules;

25           (7) A student whose parent is active-duty military, veterans

26 identified under Title 38 of the United States Code, or current or former

27 members of the Arkansas National Guard;

28           (8) A student who is or has a parent who is a law enforcement

29 officer;

30           (9) A student who is or has a parent who is a first responder;

31           (10) A student who is enrolling in kindergarten or first grade

32 for the first time; and

33           (11) Any other student for whom none of the categories under

34 subdivisions (b)(1)-(10) of this section is appliable.

35  (c) In any year in which funds are insufficient to fund all continuing

36 accounts, priority shall be given to students who have been in the Arkansas

                                    10        04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                           SB625

1 Children's Educational Freedom Account Program the longest after priority has

2 been given to students identified under subsection (b) of this section.

3   (d) The State Board of Education state board shall promulgate rules:

4   (1) For the implementation of the Arkansas Children's

5 Educational Freedom Account Program; and

6   (2) To effectively and efficiently administer the Arkansas

7 Children's Educational Freedom Account Program, including without limitation:

8   (A) The awarding of funds to participating students;

9   (B) The oversight of the Arkansas Children's Educational

10 Freedom Account Program; and

11  (C) Any other necessary aspects for the operation of the

12 Arkansas Children's Educational Freedom Account Program.

13  (e)(1)(d)(1) Except as provided under subdivision (e)(2) (d)(2) of

14 this section, a participating student may only participate in and receive

15 funds from one (1) of the following:

16  (A) The Arkansas Children's Educational Freedom Account

17 Program established by this subchapter; or

18  (B) The Philanthropic Investment in Arkansas Kids Program

19 Act, � 6-18-2301 et seq.

20  (2)(A) A student with a disability as described by subdivision

21 (a)(3)(A)(i)(a) (b)(3) of this section who has an annual family income that

22 is less than or equal to two hundred percent (200%) of the federal poverty

23 guidelines as determined annually in the Federal Register by the United

24 States Department of Health and Human Services under 42 U.S.C. � 9902(2), as

25 required under the Philanthropic Investment in Arkansas Kids Program may

26 receive funds from both the Arkansas Children's Educational Freedom Account

27 Program established by this subchapter and the Philanthropic Investment in

28 Arkansas Kids Program.

29  (B) However, a student who qualifies under subdivision

30 (e)(2)(A) (d)(2)(A) of this section may receive funds from both the Arkansas

31 Children's Educational Freedom Account Program established by this subchapter

32 and the Philanthropic Investment in Arkansas Kids Program only to the extent

33 necessary to cover qualifying expenses.

34  (f)(e) The student's parent shall submit an application for an account

35 to the Department of Education in accordance with Arkansas Children's

36 Educational Freedom Account Program timelines established by the department

                                    11         04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                          SB625

1 Department of Education.

2          (g)(1)(f)(1) The department Department of Education shall create a

3 standard form that a parent may submit to establish his or her child's

4 eligibility for the program Arkansas Children's Educational Freedom Account

5 Program.

6           (2) The department Department of Education shall ensure that the

7 standard form required under subdivision (g)(1) (f)(1) of this section is

8 publicly available and may be submitted through various sources, including

9 without limitation the internet.

10         (h)(1)(g)(1) As part of the application, a parent shall sign an

11 agreement promising each of the following without limitation:

12                 (A)(i) Not to enroll his or her child full-time in a

13 public school while his or her child is participating in the Arkansas

14 Children's Educational Freedom Account Program.

15                 (ii) However, a participating student may take

16 approved courses at a public school participating as an approved provider;

17                 (B) To use account funds only for qualifying expenses of

18 the participating student;

19                 (C) To comply with all Arkansas Children's Educational

20 Freedom Account Program requirements as established by the department

21 Department of Education according to state board rules; and

22                 (D) Beginning with the 2024-2025 school year, in the case

23 of any account used for qualifying educational expenses not associated with

24 full-time enrollment in a participating school or a participating service

25 provider, to agree to provide an education for his or her participating

26 student in at least the subjects of English language arts, mathematics,

27 social studies, and science.

28          (2) The signed agreement required under subdivision (h)(1)

29 (g)(1) of this section shall satisfy the compulsory school attendance

30 requirements of � 6-18-201.

31         (i)(h) The division Division of Elementary and Secondary Education

32 shall:

33          (1) Continue making deposits into a participating student's

34 account until:

35                 (A) The division determines that the participating student

36 is no longer an eligible student;

                                      12            04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                           SB625

1          (B) The division determines that there was substantial

2 evidence of intentional misuse of account funds, as defined by the state

3 board;

4          (C) A parent or a participating student withdraws from the

5 Arkansas Children's Educational Freedom Account Program;

6          (D) A participating student enrolls full-time in a public

7 school;

8          (E) A participating student graduates from high school; or

9          (F) A participating student completes the school year in

10 the year in which he or she turns twenty-one (21) years of age; or

11         (G) The division determines a parent or participating

12 student has committed fraudulent conduct;

13         (2) Provide parents with a written explanation of the:

14         (A) Allowable uses of funds;

15         (B) Responsibilities of parents; and

16         (C) Duties of the division and the role of any private

17 financial management firms or other private organizations that the department

18 Department of Education may contract with to administer the Arkansas

19 Children's Educational Freedom Account Program or any aspect of the Arkansas

20 Children's Educational Freedom Account Program; and

21         (3) Annually fund a participating student's account as funds are

22 available and in accordance with this law and state board rules.

23        (j)(1)(i)(1) Upon notice to the division, a participating student may

24 choose to stop receiving funds disbursed under this subchapter and enroll

25 full-time in a public school.

26         (2)(A) Enrolling as a full-time student in a public school shall

27 result in the immediate suspension of payment of additional funds into the

28 participating student's account.

29         (B)(i) However, for accounts that have been open for at

30 least one (1) full academic year, the account shall remain open and active

31 for the parent of a former participating student to make qualifying

32 expenditures to educate the student from funds remaining in the account.

33         (ii) When no funds remain in the former

34 participating student's account, the division may close the account The

35 division shall close the participating student's account after the payment of

36 all liabilities incurred before the participating student enrolls full-time

                                     13                 04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                          SB625

1 in a public school.

2            (3)(A) If a former participating student decides to return to

3 the Arkansas Children's Educational Freedom Account Program and is a current

4 eligible student, payments into the former participating student's existing

5 account may resume if the account is still open and active.

6            (B) A new account may be established if the a former

7 participating student's previous account was closed for any reason other than

8 intentional misuse of account funds or fraudulent conduct.

9   (k)(j) The state board and the department Department of Education may

10 adopt rules to provide the least disruptive process for a participating

11 student who desires to stop receiving funds disbursed under this subchapter

12 and enroll full-time in a public school.

13

14  SECTION 6. Arkansas Code � 6-18-2507(a)(1)(B) and (C), concerning

15 private school eligibility requirements under the Arkansas Children's

16 Educational Freedom Account Program, are amended to read as follows:

17           (B) A private school shall no longer be eligible if:

18                     (i) The private school has not received

19 accreditation within four (4) years of becoming eligible;

20                     (ii) The state board Division of Elementary and

21 Secondary Education determines, based on information provided by the

22 accrediting association, that the private school is ineligible or unable to

23 continue the accreditation process; or

24                     (iii) It becomes impossible for the private school to

25 obtain accreditation within four (4) years.

26           (C) A private school that becomes ineligible under this

27 section shall regain eligibility when the private school receives

28 accreditation and is approved by the state board meets all other requirements

29 established by law and rule as determined by the division;

30

31  SECTION 7. Arkansas Code � 6-18-2507(e) and (f), concerning Division

32 of Elementary and Secondary Education duties regarding eligibility for

33 participating schools and participating service providers under the Arkansas

34 Children's Educational Freedom Account Program, are amended to read as

35 follows:

36  (e) The department may bar a service provider from accepting payments

                                    14          04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                          SB625

1 from accounts and restrict the service provider's ability to serve additional

2 participating students if the department determines that the participating

3 service provider has:

4              (1) Failed to maintain continuing eligibility criteria

5 established by the state board;

6              (2) Demonstrated a gross or persistent lack of academic

7 competence or failure to provide services, as defined by the state board;

8              (3) Intentionally or substantially misrepresented information or

9 failed to refund any overpayments in a timely manner, as defined by the state

10 board; or

11             (4) Routinely failed to provide participating students with

12 promised educational goods or services, as defined by the state board; or

13             (5) Committed fraudulent conduct.

14  (f)(1) The department shall create procedures to ensure that a fair

15 process exists to determine whether a participating service provider may be

16 barred from receiving payments from accounts under subsection (e) of this

17 section.

18             (2) If the department bars a participating service provider from

19 receiving payments from accounts under this section, it shall notify parents

20 and participating students of its decision within three (3) business days of

21 its decision on the department's website and through attempted individual

22 communications.

23             (3) A participating service provider may appeal the department's

24 decision to bar it from receiving payments from accounts to the state board.

25

26  SECTION 8. DO NOT CODIFY. Severability clause. If any provision of

27 this act or the application of this act to any person or circumstance is held

28 invalid, the invalidity shall not affect other provisions or applications of

29 this act which can be given effect without the invalid provision or

30 application, and to this end, the provisions of this act are declared

31 severable.

32

33  SECTION 9. EMERGENCY CLAUSE. It is found and determined by the

34 General Assembly of the State of Arkansas that the timely implementation of

35 the proposed changes to the Arkansas Children's Educational Freedom Account

36 Program is integral to the provision of educational services in the State of

                                    15            04-15-2025 09:22:03 TNL380
    As Engrossed: S4/9/25 H4/15/25                                     SB625

1 Arkansas. Therefore, an emergency is declared to exist, and this act being

2 immediately necessary for the preservation of the public peace, health, and

3 safety shall become effective on:

4           (1) The date of its approval by the Governor;

5           (2) If the bill is neither approved nor vetoed by the Governor,

6 the expiration of the period of time during which the Governor may veto the

7 bill; or

8           (3) If the bill is vetoed by the Governor and the veto is

9 overridden, the date the last house overrides the veto.

10

11                                   /s/B. Davis

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

                                     16           04-15-2025 09:22:03 TNL380
Every fact on this page links to its source, starting with the official bill record.