Section 6-18-2507 - Participating schools and participating service providers - Eligibility - Participation(a) To be eligible to participate in the Arkansas Children's Educational Freedom Account Program, a private school shall:(1)(A) Either: (i) Meet accreditation requirements established by the State Board of Education, the Arkansas Nonpublic School Accrediting Association, Inc., or its successor, or another accrediting association recognized by the state board; or(ii) Be an associate member of or have applied for accreditation by the Arkansas Nonpublic School Accrediting Association, Inc., or its successor, or another accrediting association recognized by the state board.(B) A private school shall no longer be eligible if:(i) The private school has not received accreditation within four (4) years of becoming eligible;(ii) The state board determines, based on information provided by the accrediting association, that the private school is ineligible or unable to continue the accreditation process; or(iii) It becomes impossible for the private school to obtain accreditation within four (4) years.(C) A private school that becomes ineligible under this section shall regain eligibility when the private school receives accreditation and is approved by the state board;(2)(A) Demonstrate fiscal soundness by having been in operation for at least one (1) school year or providing the Department of Education with a statement by a certified public accountant confirming that the private school is insured and the private school has sufficient capital or credit to operate in the upcoming school year.(B) In lieu of a statement provided under subdivision (a)(2)(A) of this section, a surety bond or letter of credit for the amount equal to the account funds needed by the private school for any quarter may be filed with the department;(3) Certify that it will not discriminate on any basis prohibited by 42 U.S.C. § 2000d, as it existed on January 1, 2023;(4) Remain academically accountable to a parent for meeting the educational needs of his or her participating student;(5) Employ or contract only with teachers who hold at least baccalaureate degrees or have equivalent documented experience;(6) Comply with all applicable state laws and rules governing private schools;(7) Adhere to the tenets of its published disciplinary procedures before expelling a participating student;(8) Meet any other eligibility criteria set by state board rules;(9) Comply with all applicable health and safety laws and rules;(10) Hold valid occupancy of buildings as required by the relevant municipality in which the private school is located;(11) Exclude any individual from employment who may reasonably pose a risk to the appropriate use of funds disbursed under this subchapter;(12) Complete background checks and fingerprinting for any employee working in the private school; and(13) Maintain for audit purposes a background check of all employees.(b)(1) A public school district or open-enrollment public charter school located in the State of Arkansas that previously enrolled a student who is now a participating student under this subchapter shall provide the participating school or participating service provider that has enrolled the student who was previously enrolled in the public school district or open-enrollment public charter school a copy of the participating student's school records to the extent permitted under the provisions of the Family Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, as it existed on January 1, 2023.(2) The requirement under subdivision (b)(1) of this section that a public school district or open-enrollment public charter school in which a participating student was previously enrolled be located in the State of Arkansas does not apply to a student currently participating in the Succeed Scholarship Program, § 6-41-901 et seq.(c) By not later than June 30, 2024, the state board shall adopt rules providing for program eligibility for participating service providers that are not participating schools, including without limitation an application process that is executed, at a minimum, annually for the purpose of determining service provider eligibility.(d) The department shall maintain a list of service providers determined to be eligible to participate in the program and make the list available on the department's website.(e) The department may bar a service provider from accepting payments from accounts and restrict the service provider's ability to serve additional participating students if the department determines that the participating service provider has: (1) Failed to maintain continuing eligibility criteria established by the state board;(2) Demonstrated a gross or persistent lack of academic competence, as defined by the state board;(3) Intentionally or substantially misrepresented information or failed to refund any overpayments in a timely manner, as defined by the state board; or(4) Routinely failed to provide participating students with promised educational goods or services, as defined by the state board.(f)(1) The department shall create procedures to ensure that a fair process exists to determine whether a participating service provider may be barred from receiving payments from accounts under subsection (e) of this section.(2) If the department bars a participating service provider from receiving payments from accounts under this section, it shall notify parents and participating students of its decision within three (3) days of its decision on the department's website and through attempted individual communications.(3) A participating service provider may appeal the department's decision to bar it from receiving payments from accounts to the state board.(g) The following may be subject to review and an audit of funds received related to this subchapter and as directed by the state board:(1) A participating service provider; and(2) A participating school.(h) The state board shall promulgate rules to implement this subchapter.Added by Act 2023, No. 237,§ 42, eff. 3/8/2023.