(a) The state superintendent of public instruction shall: (i) Establish a certification process for education service providers, which shall ensure ESA students attending qualified schools in kindergarten through grade twelve (12) receive instruction in reading, writing, mathematics, civics, history, literature and science throughout their kindergarten through grade twelve (12) tenure, and for pre-kindergarten ensure ESA students at minimum receive instruction necessary for preparation to enter kindergarten; (ii) Maintain a list of certified education service providers and ensure the list is available to parents of ESA students. The list shall enable the education service provider to indicate if the education service provider is accepting new ESA students; (iii) Provide parents with a written explanation of the qualified expenses for ESA funds, the responsibilities of parents and the duties of the state superintendent related to administration of the ESA program; (iv) For students eligible for an ESA under W.S. 21- 2-904(a)(i), ensure that parents of ESA students with disabilities receive notice that participation in the ESA program is a parental placement under 20 U.S.C. § 1412, Individuals with Disabilities Education Act (IDEA), along with an explanation of the rights that parentally placed students possess under IDEA and any applicable state laws and regulations; (v) If determined necessary by the state superintendent, contract with one (1) or more private organizations to administer the ESA program or specific functions of the ESA program including, without limitation, contracting with private financial management firms to manage ESAs. The state superintendent shall comply with applicable procurement statutes and rules in securing services under this paragraph; (vi) Implement a commercially viable, cost-effective and user-friendly system for payment of services from ESAs to education service providers by electronic or online funds transfer. The payment system shall not rely exclusively on requiring parents to be reimbursed for out-of-pocket expenses. The payment system shall provide maximum flexibility to parents by facilitating direct payments to education service providers as well as requests for pre-approval of and reimbursements for qualifying expenses listed in W.S. 21-2-904(b)(i). The state superintendent may contract with private organizations to develop the payment system; (vii) Continue certifying deposits into a student's ESA until: (A) The state superintendent determines that the ESA student is no longer an eligible student; (B) The state superintendent determines there was an intentional and substantial misuse of the funds in the ESA; (C) The ESA student withdraws from the ESA program; or (D) The ESA student enrolls full-time in a public school. (viii) Conduct or contract for the auditing of individual ESAs and shall at a minimum conduct or contract for audits of not less than two percent (2%) of all ESAs, selected randomly, on an annual basis; (ix) Investigate reports of intentional and substantial misuse of ESA funds and prohibit an eligible ESA student from receipt of ESA funds if the state superintendent determines that the ESA student or ESA student's parent intentionally and substantially misused ESA funds. The state superintendent shall by rule create procedures to ensure that a fair process exists to determine whether an intentional and substantial misuse of ESA funds has occurred. If an ESA student is free from personal misconduct, that student shall be eligible for an ESA in the future if placed with a different parent or other person with the legal authority to act on behalf of the student. The state superintendent shall have the authority to refer suspected cases of intentional and substantial misuse of ESA funds to the department of audit or to law enforcement and the attorney general for investigation and prosecution if evidence of fraudulent use of ESA funds is obtained. A parent or ESA student may appeal a final decision of the state superintendent to make the parent or ESA student ineligible for the ESA program as provided by the Wyoming Administrative Procedures Act; (x) Establish rules to prohibit an education service provider from accepting payments from ESAs if the state superintendent determines the education service provider has: (A) Intentionally and substantially misrepresented information or failed to refund any overpayments in a timely manner; or (B) Routinely failed to provide students with required educational goods or services. (xi) By rule create procedures to ensure that a fair process exists to determine whether an education service provider should be prohibited from receiving ESA funds under paragraph (x) of this subsection. Education service providers may appeal a final decision of the state superintendent under this paragraph as provided by the Wyoming Administrative Procedures Act; (xii) For students eligible for an ESA under W.S. 21- 2-904(a)(i), ensure ESA students, who choose to, participate in the statewide assessments administered pursuant to W.S. 21-2- 304(a) and compile the assessment results to analyze student proficiency and academic progress among the students participating in the ESA program, including an analysis of graduation rates, proficiency and progress based on grade level. The results of the analysis under this paragraph shall be included in the annual report required pursuant to W.S. 21-2- 204(k); (xiii) If the state superintendent determines it is necessary, withhold from the funds to be deposited in ESAs, a maximum of five percent (5%) annually of the funds to be deposited in ESAs in the first two (2) school years of the ESA program and a maximum of three percent (3%) annually of the funds to be deposited in ESAs thereafter to pay for the costs of administering the ESA program. (b) If an education service provider requires partial payment of tuition or fees prior to the start of the school year to reserve space for an ESA student admitted to the education service provider, the state superintendent may certify the partial payment prior to the start of the school year in which the ESA is awarded and deduct that amount from subsequent quarterly ESA deposits. If an ESA student decides not to use the education service provider, the partial payment made under this subsection shall be returned to the state superintendent by the education service provider and credited to the student's ESA. (c) The state superintendent may adopt rules that are not inconsistent with this act and that are necessary for the administration of this act including rules: (i) Establishing or contracting for the establishment of an online anonymous fraud reporting service; (ii) Establishing an anonymous telephone hotline for fraud reporting; (iii) Requiring a surety bond for education service providers receiving more than one hundred fifty thousand dollars ($150,000.00) in ESA funds; and (iv) Establishing a procedure for refunding payments from education service providers to ESAs. (d) Rules adopted by the state superintendent under subsection (c) of this section shall focus on simplifying parental access to the program and encouraging educational service providers to provide parents and ESA students with a broad array of educational options. (e) The state superintendent may accept gifts and grants from any source to cover administrative costs of the program, to inform the public about the ESA program or to fund ESAs.
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