00                             SENATE BILL NO. 106                                                                         
01 "An Act establishing the parental choice scholarship program to be administered by                                      
02 school districts for the purpose of paying the cost of attending grades kindergarten                                    
03 through 12 at public and private schools; and providing for an effective date."                                         
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 14 is amended by adding a new chapter to read:                                                     
06                Chapter 31. Parental Choice Scholarship Program.                                                       
07            Sec. 14.31.010. Parental choice scholarship program established. The                                       
08       parental choice scholarship program is established for the purpose of providing public                            
09       funding of the cost of attending grades kindergarten through 12 at a public or private                            
10       school selected by the student's parent or legal guardian. Each school district shall                             
11       administer the program under the provisions of this chapter. Participation of a school                            
12       in the program does not confer authority over a school to a school district that is not                           
13       expressly provided for in this title.                                                                             
14            Sec. 14.31.020. Scholarship amount and eligibility. (a) A public school in                                 
01       the state may receive a scholarship under the parental choice scholarship program on                              
02       behalf of a student who attends the school, regardless of the attendance area in the                              
03       school district in which the student resides.                                                                     
04            (b)  A private school qualifies to receive funding under the parental choice                                 
05       scholarship program if the school                                                                                 
06                 (1)  submits notice of participation to the district in which the school is                             
07       located on a form approved by the district indicating that the school intends to                                  
08       participate in the program;                                                                                       
09                 (2)  meets the accountability and enrollment standards under                                            
10       AS 14.31.025; and                                                                                                 
11                 (3)  complies with AS 14.45.030 or 14.45.110 - 14.45.130.                                               
12            (c)  Notwithstanding the calculations required under AS 14.17, the district shall                            
13       pay to a qualified school attended by the student under this section a parental choice                            
14       scholarship that is equal to the lesser of                                                                        
15                 (1)  the amount the school district in which the student resides would                                  
16       receive under AS 14.17 for a similarly situated student to attend a public school in the                          
17       district, except that the amount may not exceed 100 percent of the funding the school                             
18       receives and expends from all state and local sources for the student; or                                         
19                 (2)  the actual annual cost to the school of educating the student,                                     
20       including prorated facility and operating expenses.                                                               
21            (d)  If a parent or legal guardian has selected a public school outside of the                               
22       attendance area in which the student resides for a scholarship under this section, the                            
23       school district in which the student resides may contribute to the reasonable costs of                            
24       transporting the student to the scholarship recipient school with state aid available                             
25       under AS 14.09.010 for transportation of the student.                                                             
26            (e)  A scholarship received for the benefit of a student under this section must                             
27       be used for educational purposes. A scholarship is transferable among participating                               
28       schools.                                                                                                          
29            (f)  A participating school shall include students who are enrolled under this                               
30       section in the student count for purposes of calculating state aid under AS 14.17.610.                            
31            Sec. 14.31.025. Accountability and enrollment standards for a                                              
01       participating school. (a) A district shall accept a school for participation in the                             
02       parental choice scholarship program if the school                                                                 
03                 (1)  operates in compliance with all applicable federal and state laws                                  
04       pertaining to health and safety;                                                                                  
05                 (2)  does not discriminate in its admission and hiring practices as                                     
06       prohibited under AS 14.18.010 - 14.18.100;                                                                        
07                 (3)  admits students in accordance with the published admissions policy                                 
08       of the school;                                                                                                    
09                 (4)  requires criminal history background checks as provided under                                      
10       AS 12.62.400 for all individuals who are employed in or otherwise work in the school;                             
11                 (5)  if a private school, meets the following financial accountability                                  
12       standards:                                                                                                        
13                      (A)  demonstrates the school's financial ability to repay to the                                   
14            district any overpaid scholarship funds; and                                                                 
15                      (B)  certifies the actual annual costs to the school of educating a                                
16            student, including a prorated amount for facility and operating costs.                                       
17            (b)  A participating school is autonomous and may not be subject to additional                               
18       regulation by the state unless authorized under AS 14.31.010 - 14.31.090.                                         
19            Sec. 14.31.035. District duties. (a) In implementing the parental choice                                   
20       scholarship program, the district shall                                                                           
21                 (1)  make scholarship payments directly to the school quarterly after                                   
22       receiving proof satisfactory to the district that the student claimed under a scholarship                         
23       attends the school on a full-time basis;                                                                          
24                 (2)  make available to students and students' parents or guardians a list                               
25       of schools that have been accepted to participate in the program; and                                             
26                 (3)  provide a standard application for use by a school to enroll a                                     
27       student under the program; a school may, however, supplement the application.                                     
28            (b)  If the district denies or revokes acceptance of a school to participate in the                          
29       program, the district shall, after administrative and judicial appeal periods have lapsed,                        
30       immediately notify the affected students and the students' parents or guardians.                                
31            Sec. 14.31.040. Regulations. The department shall adopt regulations necessary                              
01       to carry out the program in a manner that ensures the highest number of student and                               
02       school participation, including                                                                                   
03                 (1)  procedures for calculating for and distributing scholarships;                                      
04                 (2)  timelines and procedures for application, renewal, and appeal for                                  
05       participating schools and students; and                                                                           
06                 (3)  standards for acceptance, revocation, and denial for participating                                 
07       schools.                                                                                                          
08            Sec. 14.31.045. Appropriations for scholarships. The legislature may                                       
09       appropriate parental choice scholarship program funds to the department for                                       
10       distribution to the districts. If the appropriation for the program is insufficient in a                          
11       given fiscal year, the department shall distribute the available funds to the districts                           
12       prorated by the number of participating students in the program.                                                  
13            Sec. 14.31.090. Definitions. In this chapter,                                                              
14                 (1)  "district" has the meaning given in AS 14.17.990;                                                  
15                 (2)  "private school" means a school located in the state that provides                                 
16       education to students attending grades kindergarten through 12, or any combination of                             
17       those grades, and that does not receive state funding under AS 14.17;                                             
18                 (3)  "program" means the parent choice scholarship program;                                             
19                 (4)  "student" means a person residing in the state who is at least five                                
20       years of age but not more than 21 years of age.                                                                   
21    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
22 read:                                                                                                                   
23       CONTINGENCY. Section 1 of this Act takes effect only if an amendment to art. VII,                                 
24 sec. 1, Constitution of the State of Alaska, deleting the prohibition on the payment of public                          
25 funds for the direct benefit of a private educational institution, is approved by the voters                            
26 before July 1, 2013.                                                                                                    
27    * Sec. 3. If, under sec. 2 of this Act, sec. 1 of this Act takes effect, it takes effect on the                    
28 effective date of the constitutional amendment described in sec. 2 of this Act.