Administrative Rules of the State of Montana

BEFORE THE OFFICE OF PUBLIC INSTRUCTION

OF THE STATE OF MONTANA

In the matter of the adoption of NEW RULE I pertaining to Education Savings Accounts

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NOTICE OF PUBLIC HEARING ON PROPOSED ADOPTION

TO: All Concerned Persons

1. On June 17, 2024, at 10:00 a.m., the Office of Public Instruction (OPI) will hold an in-person public hearing at the OPI building at 1300 11th Avenue, Helena, Montana, to consider the proposed adoption of the above-stated rule. Details about remote participation via the ZOOM meeting platform will be available prior to the hearing at https://opi.mt.gov/Families-Students/Parent-Resources/Education-Savings-Account.

2. OPI will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact OPI no later than 5:00 p.m. on June 10, 2024, to advise us of the nature of the accommodation that you need. Please contact Brian O'Leary, Office of Public Instruction, 1300 11th Ave, Helena, Montana, 59601; telephone (406) 444-3559; fax (406) 444-2893; or e-mail brian.o'[email protected].

3. The rule proposed to be adopted is as follows:

NEW RULE I EDUCATION SAVINGS ACCOUNTS (ESA) (1) Application process:

(a) Two time periods each year are established during which a student's parent, as defined in 20-7-1703, MCA, may notify the superintendent of public instruction of their intent for their student to participate in the program through the ESA application process. Those two time periods are established as May 1 through June 1 and November 1 through December 1.

(2) Student Eligibility:

(a) Eligibility under the qualified student requirements will be determined through the secure application process located on the Office of Public Instruction (OPI) website. A parent must provide all necessary documentation required in the application process and meet the disability, age, and enrollment requirements of 20-7-1703, MCA, and 20-7-1706, MCA; and

(b) OPI will notify the parent within 30 days of the close of the application window of their student's eligibility for the program.

(3) ESA Contract:

(a) Once OPI determines that the student is qualified and eligible for the ESA program, OPI will send a contract to that student's parent for the parent to execute and return to OPI; and

(b) prior to the parent requesting any reimbursement, the ESA contract must be completed by all parties. Contracts must be executed and returned to OPI no later than July 15 and January 15, or the applicant must re-apply during the next application period.

(4) The ESA student amount will be calculated per the formula established in 20-7-1703(2), MCA. The amount is calculated as the sum of:

(a) Data-for-achievement payment under 20-9-306, MCA;

(b) Indian Education For All payment under 20-9-306, MCA;

(d) per-ANB entitlement amount under 20-9-306, MCA, multiplied by the ratio of school district adopted budget to district maximum general fund budget in the prior year in the district in which the student is included in for the ANB purposes under the program.

(5) Notification:

(a) OPI will provide ESA calculations related to participating students to each affected resident school district before the August and January school base aid payments are made. If OPI terminates a student from the ESA program in accordance with 20-7-1706(3), MCA, OPI will notify the affected resident district within 20 days of the termination date.

(6) Accounting guidance:

(a) The school districts must remit the funds to OPI based on the allocation calculation related to the prior month BASE aid distribution received by the school district. School districts shall remit to the OPI the amount calculated for each participating student by no later than the tenth of the month following each BASE aid distribution. OPI will provide guidance to the affected resident school districts on the method for remitting the required funds to OPI.

(7) Trust account:

(a) 95% of the money is to be deposited in the ESA trust fund account for each student and 5% of the money is to be deposited in the ESA administration state special revenue account; and

(b) Any trust interest that is earned will be accounted for individually for each education savings account.

(8) Reimbursement procedure:

(a) OPI will provide each participating student's parent with both electronic and paper processes to reimburse the parent for the purchase of allowable educational resources from a student's trust account. Payments may not be made that exceed the available balance in each student account. Reimbursement requests that exceed the current available balance may be distributed as partial reimbursements over multiple months as funds are deposited into the account following each BASE aid remittance as set forth in (6)(a).

AUTH: 20-7-1706, MCA

IMP: 20-7-1704, 20-7-1706, MCA

REASON: The proposed rule would implement 20-7-1706, MCA, which requires the Superintendent of Public Instruction to establish such rules as may be necessary for administering the Students With Special Needs Equal Opportunity Education Savings Account program. This rule is intended to provide clear timelines and procedures to the parent(s) of children with special needs who wish to participate in the program.

4. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to Brian O'Leary, Office of Public Instruction, 1300 11th Avenue, Helena, Montana, 59601; telephone (406) 444-3559; fax (406) 444-2893; or e-mail brian.o'[email protected], and must be received no later than 5:00 p.m., June 21, 2024.

5. Richard E. Wootton, staff attorney at the Office of Public Instruction, has been designated to preside over and conduct this hearing.

6. OPI maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list must make a written request that includes the name, email, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by email unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in paragraph 4 or may be made by completing a request form at any rules hearing held by OPI.

7. An electronic copy of this proposal notice is available through the Secretary of State's website at http://sosmt.gov/ARM/Register.

8. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted by email on May 14, 2024.

9. With regard to the requirements of 2-4-111, MCA, OPI has determined that the adoption of the above-referenced rule will not significantly and directly impact small businesses.

/s/ Robert Stutz /s/ Elsie Arntzen

Robert Stutz Elsie Arntzen

Rule Reviewer Superintendent of Public Instruction

Office of Public Instruction

Certified to the Secretary of State May 14, 2024.