1 Education Freedom Accounts Program; Enrolling in Public School. Amend RSA 194-F:3, VI to read as follows:

VI. Upon notice to the scholarship organization, an EFA student may choose to stop receiving EFA funding and enroll full-time in a public school.

(a) Enrolling as a full-time student in the resident district public school shall result in:

The immediate suspension of payment of additional funds into the student's EFA.  *However, an EFA that has been open for at least one full school year shall remain open and active for the parent to make qualifying expenditures to educate the student from funds remaining in the EFA.  When no funds remain in the student's EFA, the scholarship organization may close the EFA.*

(b) If an eligible student decides to return to the EFA program, payments into the student's existing EFA may resume if the EFA is still open and active. a new EFA may be established if the student's EFA was closed.

2 Responsibilities of the Scholarship Organization; Audits; Misues of Funds. Amend RSA 194-F:4, X through 194-F:4, XIII to read as follows: to read as follows:

X. The scholarship organization may conduct or contract for the auditing of individual EFAs, and shall at a minimum conduct random audits of EFAs on an annual basis.

XI. The scholarship organization may make any parent or EFA student ineligible for the EFA program in the event of intentional and substantial misuse of EFA funds.

(a) The scholarship organization shall create procedures to ensure that a fair process exists to determine whether an intentional and substantial misuse of EFA funds has occurred.

(b) If an EFA student is free from personal misconduct, that student shall be eligible for an EFA in the future if placed with a new guardian or other person with the legal authority to act on behalf of the student.

(c) The scholarship organization may refer suspected cases of intentional and substantial misuse of EFA funds to the attorney general for investigation if evidence of fraudulent use of EFA funds is obtained.

(d) A parent or EFA student may appeal the scholarship organization's decision to deny eligibility for the EFA program to the department.

XII. The scholarship organization may bar an education service provider from accepting payments from EFAs if the scholarship organization determines that the education service provider has:

(a) Intentionally and Substantially misrepresented information or failed to refund any overpayments in a timely manner.

(b) Routinely failed to provide students with promised educational goods or services.

XIII. The scholarship organization shall create procedures to ensure that a fair process exists to determine whether an education service provider may be barred from receiving payments from EFAs.

(a) If the scholarship organization bars an education service provider from receiving payments from EFAs, it shall notify parents and EFA students of its decision as quickly as possible .

(b) Education service providers may appeal the scholarship organization's decision to bar them from receiving payments from the EFA to the department.

3 Effective Date. This act shall take effect 60 days after its passage.

1 Education Freedom Accounts Program; Enrolling in Public School. Amend RSA 194-F:3, VI to read as follows:

VI. Upon notice to the scholarship organization, an EFA student may choose to stop receiving EFA funding and enroll full-time in a public school.

(a) Enrolling as a full-time student in the resident district public school shall result in:

(1) The immediate suspension of payment of additional funds into the student's EFA.

(2) Termination of the EFA; and

(3) Any remaining funds being be transferred back to the education trust fund.

(b) If an eligible student decides to return to the EFA program, a new EFA may be established .

2 Responsibilities of the Scholarship Organization; Audits; Misues of Funds. Amend RSA 194-F:4, X through 194-F:4, XIII to read as follows: to read as follows:

X. The scholarship organization shall conduct or contract for the auditing of individual EFAs, and shall at a minimum conduct random audits of EFAs on an annual basis.

XI. The scholarship organization shall make any parent or EFA student ineligible for the EFA program in the event of substantial misuse of EFA funds.

(a) The scholarship organization shall create procedures to ensure that a fair process exists to determine whether substantial misuse of EFA funds has occurred.

(b) If an EFA student is free from personal misconduct, that student shall be eligible for an EFA in the future if placed with a new guardian or other person with the legal authority to act on behalf of the student.

(c) The scholarship organization shall refer suspected cases of substantial misuse of EFA funds to the attorney general for investigation.

(d) A parent or EFA student may appeal the scholarship organization's decision to deny eligibility for the EFA program to the department.

XII. The scholarship organization may bar an education service provider from accepting payments from EFAs if the scholarship organization determines that the education service provider has:

(a) Substantially misrepresented information or failed to refund any overpayments in a timely manner.

(b) Routinely failed to provide students with promised educational goods or services.

XIII. The scholarship organization shall create procedures to ensure that a fair process exists to determine whether an education service provider may be barred from receiving payments from EFAs.

(a) If the scholarship organization bars an education service provider from receiving payments from EFAs, it shall notify parents and EFA students of its decision within 5 business days .

(b) Education service providers may appeal the scholarship organization's decision to bar them from receiving payments from the EFA to the department.

3 Effective Date. This act shall take effect 60 days after its passage.