Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 18 - STUDENTS (§§ 6-18-101 — 6-18-2608) › Subchapter 25 - ARKANSAS CHILDREN'S EDUCATIONAL FREEDOM ACCOUNT PROGRAM (§§ 6-18-2501 — 6-18-2511) › Section 6-18-2504 - State Board of Education - Rules

(a)
The Division of Elementary and Secondary Education shall administer the Arkansas Children's Educational Freedom Account Program under this subchapter, which shall be subject to the rules adopted by the State Board of Education.
(b)
The rules adopted by the state board under this subchapter shall include without limitation the:
(1)
Process for determining the eligibility of students and service providers, including the awarding of accounts to eligible students and removal of unnecessary barriers or disincentives to participation by potential participating service providers;
(2)
(A)
Process for conducting account and program audits, including establishing the authority for the division to conduct or contract for the auditing of accounts.
(B)
The division shall establish a process for conducting an audit of an entity receiving funds under this subchapter, including:
(i)
An individual account;
(ii)
A participating service provider; and
(iii)
A participating school.
(C)
At least one (1) time each year, the division shall conduct random audits of the following according to the auditing process established under subdivision (b)(2)(B) of this section:
(i)
An individual account;
(ii)
A participating service provider; and
(iii)
A participating school;
(3)
Authority of the division to:
(A)
Deem any participating student ineligible for the program; and
(B)
Refer a case involving the misuse of account funds for investigation to:
(i)
The Attorney General; or
(ii)
The Secretary of the Department of Inspector General;
(4)
Authority of the division to contract with a vendor or other supplier for the administration of the program or parts of the program;
(5)
Requirement that the program shall:
(A)
Begin enrolling participating students no later than the beginning of the 2023-2024 school year; and
(B)
Be fully implemented to serve all Arkansas children eligible to enroll in a public school by the beginning of the 2025-2026 school year;
(6)
Establishment or creation of a contract for the establishment of an online anonymous fraud reporting service, including without limitation a telephone hotline;
(7)
Requirement for a surety bond for a participating service provider that receives more than one hundred thousand dollars ($100,000) in account funds;
(8)
Mechanism for the refunding of payments from service providers back to the account from which they were paid;
(9)
Required compliance with all state procurement laws and procedures; and
(10)
Means for preventing unreasonable inflation or fraud in participating school tuition and fees.
(c)
The following shall be forwarded to Arkansas Legislative Audit:
(1)
An audit conducted under subdivision (b)(2) of this section that identifies a potential misuse of account funds; and
(2)
The referral of a case involving the misuse of account funds for investigation to the Attorney General or the Secretary of the Department of Inspector General under subdivision (b)(3)(B) of this section.
(d)
To ensure that account funds under this subchapter provide for the expansion of access to education options by reducing family financial burdens and are not abused by service providers for financial gain, the state board shall take all necessary action in establishing rules under this subchapter, including without limitation the disqualification of a participating school or a participating service provider.
Added by Act 2023, No. 237,§ 42, eff. 3/8/2023.