An Act to Support School Choice by Establishing Empowerment Scholarship Accounts
Maine Legislature, Session 131, LD 1798
Committee: Education and Cultural Affairs
Sponsors: LIBBY, MORRIS, KEIM, STEWART, PARRY
Amends: 20-A MRSA §15689

Legislative Document
No. 1798
S.P. 723
In Senate, April 25, 2023
An Act to Support School Choice by Establishing Empowerment 
Scholarship Accounts
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LIBBY of Cumberland.
Cosponsored by Representative MORRIS of Turner and
Senators: KEIM of Oxford, STEWART of Aroostook, Representative: PARRY of Arundel.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  20-A MRSA c. 335 is enacted to read:
CHAPTER 335
EMPOWERMENT SCHOLARSHIP PROGRAM
§9941. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1. Child with a disability. "Child with a disability" has the same meaning as in section 
7001, subsection 1-B.
2. Eligible postsecondary institution. "Eligible postsecondary institution" means a 
college or university of the Maine Community College System or the University of Maine 
System or an accredited private postsecondary institution.
3. Empowerment scholarship account. "Empowerment scholarship account" means 
an account established pursuant to section 9942.
4. Public school. "Public school" means the Child Development Services System or 
other public preschool program for children from birth to under 5 years of age with 
disabilities, a public preschool program, a school administrative unit or a public charter 
school.
5. Qualified school. "Qualified school" means a private elementary or secondary 
school located in this State, a private preschool for children with disabilities located in this 
State, an entity providing a program of distance learning, a person or entity providing 
educational tutoring that is accredited by a recognized accrediting organization or a parent 
or guardian providing home instruction that meets the requirements of section 5001-A, 
subsection 3, paragraph A, subparagraph (4).
6. Qualified student. "Qualified student" means a resident of this State who is eligible 
to enroll in a public school in this State.
§9942. Empowerment scholarship accounts; enrollment; additional requirements
1. Empowerment scholarship accounts. The department shall administer the 
enrollment of qualified students in empowerment scholarship accounts in accordance with 
this section to provide options for the education of students in this State.
2. Enrollment. To enroll a qualified student in an empowerment scholarship account, 
the parent of the qualified student shall sign a contract with the department, which must 
include that the parent agrees to:
A. Use a portion of the funds from the empowerment scholarship account annually to 
provide an education for the qualified student in at least the subjects of English, social 
studies, mathematics and science;
B. Not enroll the qualified student in a public school; 
C. Release the public school from all obligations to educate the qualified student, 
except that the public school that the qualified student previously attended is not 
relieved from the obligation to conduct an evaluation to determine if the student is 
eligible for special education and related services;
D. Use money in the qualified student's empowerment scholarship account only for the 
following expenses of the qualified student:
(1) Tuition or fees at a qualified school;
(2) Textbooks required by a qualified school;
(3) Additional services and costs, if eligible, under section 9944;
(4) Tutoring or teaching services provided by an individual or facility accredited 
by a state, regional or national accrediting organization;
(5) Curricula and supplementary materials;
(6) Tuition or fees for a private online learning program;
(7) Fees for a nationally standardized norm-referenced achievement test, an 
advanced placement examination or any examinations related to college or 
university admission;
(8) Tuition or fees at an eligible postsecondary institution;
(9) Textbooks required by an eligible postsecondary institution; 
(10) Fees to manage the empowerment scholarship account;
(11) Fees for services provided by a public school, including individual classes and 
extracurricular activities;
(12) Insurance or surety bond payments;
(13) Uniforms purchased through a qualified school;
(14) Public transportation services; and
(15) Computer hardware and technological devices primarily used for an 
educational purpose. For the purpose of this subparagraph, "computer hardware 
and technological devices" includes calculators, personal computers, laptop 
computers, tablet devices, microscopes, telescopes and printers and does not 
include entertainment and other primarily noneducational devices such as 
televisions, telephones, video game consoles and accessories and home theater and 
audio equipment;
E. Not use money deposited in the qualified student's empowerment scholarship 
account for:
(1) Computer hardware or other technological devices, except as permitted under 
paragraph D, subparagraph (15); or
(2) Transportation of the student, except as permitted under paragraph D, 
subparagraph (14); and
F. Beginning in the 2023-2024 school year and each subsequent year, annually have 
the qualified student, if the student pays tuition as a full-time student at a qualified 
school and is in grades 3 to 12, take any nationally standardized norm-referenced 
achievement test, a statewide assessment pursuant to section 6202 or any examination 
related to college or university admission that assesses reading and mathematics. A 
parent may meet the requirements of this paragraph by having the qualified student 
take a test, assessment or examination that is chosen and administered by a qualified 
school or by choosing a separate test, assessment or examination that is administered 
outside of the qualified school. The results must be reported to the parent. This 
paragraph does not apply to a student who is a child with a disability.
3. Requirement for qualified schools enrolling 50 or more qualified students. A 
qualified school that enrolls 50 or more qualified students shall annually make available to 
the parents of an enrolled or prospective qualified student the aggregate test scores of either 
all students enrolled in the qualified school or all qualified students who are enrolled in the 
qualified school on all of the following tests, examinations and assessments by school site 
and grade level:
A. Any nationally standardized norm-referenced achievement test;
B. The statewide assessment pursuant to section 6202; and
C. Any examination related to college or university admission that assesses reading 
and mathematics.
4. Department administration; fund established.  The empowerment scholarship 
account fund is established within the department. The department shall administer the 
fund. Money in the fund must be used for the department's costs under this chapter. The 
fund is nonlapsing. 
5. Attendance. A student attending a qualified school pursuant to a signed contract 
under this section satisfies the school attendance requirements of section 5001-A.
6. Prohibition. A qualified school or a provider of services may not share, refund or 
rebate any empowerment scholarship account money with or to the parent or qualified 
student in any manner, except as established by rule for a parent or guardian providing 
home instruction that meets the requirements of section 5001-A, subsection 3, paragraph 
A, subparagraph (4).
7. Audit. The department shall conduct or contract for annual audits of empowerment 
scholarship accounts to ensure compliance with subsection 2, paragraph C.
8. Compliance; removal.  The department may remove any parent or qualified student 
from eligibility for an empowerment scholarship account if the parent or qualified student 
fails to comply with the terms of the contract executed pursuant to this section or applicable 
laws or rules or knowingly misuses money or knowingly fails to comply with the terms of 
the contract with intent to defraud. Upon removal under this subsection, the department 
shall notify the Treasurer of State, who shall suspend the account. The department shall 
establish by rule an appeal process for the suspension of an account under this subsection.
§9943. Treasurer of State; establishment; oversight
The Treasurer of State, in consultation with the department, shall, in accordance with 
this section, establish individual empowerment scholarship accounts to carry out the 
purposes of section 9942. 
1. Administration. Upon the parent's agreement to the criteria established in section 
9942, the department shall notify the Treasurer of State and deposit into the active 
empowerment scholarship account 90% of the state subsidy attributable to the qualified 
student for whom the account is established that would otherwise have been provided to 
the qualified student's school administrative unit under chapter 606-B.  The department 
shall also direct that school administrative unit to deposit into the account 90% of the school 
administrative unit's required contribution to the unit's total cost of education attributable 
to that qualified student. 
2. Renewal. The Treasurer of State may annually renew an empowerment scholarship 
account and deposit funds into the account in accordance with subsection 1 if the parent at 
whose request the account was established applies for a renewal and the Treasurer of State 
finds that the requirements of this chapter and rules adopted under this chapter have been 
met.
3. Closure. The Treasurer of State shall close a qualified student's empowerment 
scholarship account and provide all funds in the account to the State Controller, who shall 
transfer the funds to the unappropriated surplus of the General Fund:
A. If a parent at whose request the empowerment scholarship account was established 
does not apply for a renewal or the Treasurer of State finds that the requirements of 
this chapter or rules adopted under this chapter have not been met; or
B. On the qualified student's graduation from a postsecondary institution or after any 
period of 4 consecutive years after secondary school graduation in which the student is 
not enrolled in an eligible postsecondary institution, but not before this time as long as 
the empowerment scholarship account holder continues using a portion of account 
money for eligible expenses each year and is in good standing.
4. Oversight. The Treasurer of State shall review all expenditures from empowerment 
scholarship accounts to ensure that they are in accordance with the requirements of this 
chapter and rules adopted under this chapter.  If at any time the Treasurer of State finds that 
expenditures from an empowerment scholarship account are not in accordance with the 
requirements of this chapter or rules adopted under this chapter, the Treasurer of State shall 
notify the parent of the qualified student for whom the empowerment scholarship account 
is established and if, after an opportunity for hearing, the department determines that there 
was in fact a misuse of the funds, the Treasurer of State shall close the account and provide 
all funds in the account to the State Controller, who shall transfer the funds to the 
unappropriated surplus of the General Fund.
5. Income tax. Money received pursuant to this chapter does not constitute taxable 
income to the parent of the qualified student.
6. Contracts. The Treasurer of State may contract with private financial management 
firms to manage empowerment scholarship accounts. 
§9944. Additional services and extended eligibility for child with disability
1. Additional services. If a qualified student is a child with a disability as determined 
by a public school or by an independent 3rd party, a parent may use money in the qualified 
student's empowerment scholarship account for the following additional services:
A. Educational therapies from a licensed or accredited practitioner or provider, 
including and up to any amount not covered by insurance if the expense is partially 
paid by a health insurance policy for the qualified student;
B. A licensed or accredited paraprofessional or education technician;
C. Tuition for vocational and life skills education approved by the department; and
D. Associated goods and services that include educational and psychological 
evaluations, assistive technology rentals and Braille translation goods and services 
approved by the department.
2. Extended eligibility. If a qualified student is a child with a disability and the 
qualified student is in the 2nd year prior to the final year of a contract executed pursuant to 
section 9942, a parent may use money in the qualified student's empowerment scholarship 
account for costs associated with an individualized education program conducted by an 
independent evaluation team. The department shall prescribe minimum qualifications for 
independent evaluation teams pursuant to this subsection and factors that teams must use 
to determine whether the qualified student is eligible to continue to receive money pursuant 
to this chapter through the school year in which the qualified student reaches 22 years of 
age. An independent evaluation team that provides an individualized education program 
pursuant to this subsection shall submit a written report that summarizes the results of the 
evaluation to the parent of the qualified student and the department no later than July 31st. 
The written report is valid for one year. If the department determines that the qualified 
student meets the eligibility criteria prescribed in the individualized education program, the 
qualified student is eligible to continue to receive money pursuant to this chapter until the 
qualified student reaches 22 years of age, subject to the annual review. A parent may appeal 
the department's decision. Prior to a parent signing a qualified student's final-year contract, 
the department shall provide the following written information to the parent:
A. That the qualified student is not eligible to continue to receive money pursuant to 
this chapter unless the results of an individualized education program conducted 
pursuant to this subsection demonstrate that the qualified student meets the eligibility 
criteria prescribed in the individualized education program;
B. That the parent is entitled to obtain an individualized education program pursuant 
to this subsection to determine whether the qualified student meets the eligibility 
criteria prescribed in the individualized education program; and
C. A list of independent evaluation teams that meet the minimum qualifications 
prescribed by the department.
§9945. Rulemaking
The department and the Treasurer of State shall adopt rules necessary to implement 
this chapter.  Rules adopted by the department and the Treasurer of State pursuant to this 
section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 2.  20-A MRSA §15689, sub-§17 is enacted to read:
17.  Adjustment for empowerment scholarship accounts.  The commissioner shall 
reduce the state share of the total allocation to a school administrative unit in any year in 
which one or more empowerment scholarship accounts under section 9943 are established 
for students within that school administrative unit.  The amount of the reduction must equal 
the total state subsidy that is attributable to all students in that school administrative unit 
for whom empowerment scholarship accounts have been established, as determined by the 
department pursuant to section 9943, subsection 1.
SUMMARY
This bill directs the Treasurer of State to establish and the Department of Education to 
administer individual empowerment scholarship accounts, based on similar accounts 
established in the state of Arizona, which may be used by parents to pay for the education 
of their children outside of the public school system, including private schools, online 
schools or home instruction. The funding for these empowerment scholarship accounts 
comes from shifting 90% of the essential programs and services funding that would 
otherwise be provided by the State and by the school administrative unit for each child into 
an empowerment scholarship account. The bill specifies what educational expenditures are 
permitted, including additional expenditures for children with disabilities, and provides for 
review of spending from the accounts.