TENNESSEE: Individualized Education Account Program

Robert Fanger ESA comparison by Policy 07 August 2024 Hits: 126

Fund Administrator:
- Synopsis:
  Department of Education
  , Statute Language:
  Section 49-10-1405 - Administration of IEA program by department
  (a) In administering the IEA program, the department shall:
  (1) Remit funds to a participating student's IEA account on at least a quarterly basis. Any funds awarded under this part shall be the entitlement of only the eligible student under the supervision of the student's parent. The maximum annual amount to which an eligible student is entitled under this part shall be equal to the amount representing the total funding allocation that the student generates under the Tennessee investment in student achievement formula (TISA). For the purpose of funding calculations, each eligible student who participates in the program shall be counted in the enrollment figures for the LEA in which the student resides and is zoned to attend. The IEA funds shall be subtracted from the state funds otherwise payable to the LEA;
  -2
  (A) Create a standard form that a parent of a student may submit to establish the student's eligibility for an IEA. The department shall make the application readily available to interested families through various sources, including the internet; and
  (B) In accordance with state board of education rules promulgated in consultation with the department of education and the department of health, create an application and approval process for nonpublic schools to become participating schools;
  (3) Establish application and participation timelines that shall maximize student and school participation;
  (4) Provide parents of participating students with a written explanation of the allowable uses of IEAs, the responsibilities of parents, and the duties of the department;
  (5) Develop and implement a process to notify parents of their child's potential eligibility to participate in the program and notify the education committee of the senate and the education administration committee of the house of representatives on the process that the department develops pursuant to this subdivision (a)(5);
  (6) Adopt policies necessary for the administration of the IEA program, including:
  (A) Policies for conducting or contracting for random, quarterly, or annual reviews of accounts;
  (B) Policies for establishing or contracting for the establishment of an online anonymous fraud reporting service; and
  (C) Policies for establishing an anonymous telephone hotline for reporting fraud; and
  (7) Post on its website a list of participating schools for each school year, the grades taught in the school and other information that the department determines shall assist parents in selecting participating schools for their children.
  (b) The department may deduct an amount up to six percent (6%) from appropriations used to fund IEAs to cover the costs of overseeing the funds and administering the program.
  (c) In compliance with all state and federal student privacy laws, an LEA shall provide a participating school that has admitted an eligible student under this part with a complete copy of the student's school records in the possession of the LEA.
  T.C.A. § 49-10-1405
Funding Mechanism:
- Synopsis:
  Direct
  , Statute Language:
  (b) Parents shall agree to use the funds deposited in a participating student's IEA for any, or any combination, of the following expenses of the participating student:
Program Administrator (Gov't):
- Synopsis:
  Department of Education
  , Statute Language:
  (a) In administering the IEA program, the department shall:
Third Party Administrator:
- Synopsis:
  Way2Go
Role of DOE:
- Synopsis:
  Program Administrator
  , Statute Language:
  (a) In administering the IEA program, the department shall:
Application Window/Dates:
- Synopsis:
  February 17 - April 17
  , Statute Language:
  Section 49-10-1405 - Administration of IEA program by department
  (a) In administering the IEA program, the department shall:
  (1) Remit funds to a participating student's IEA account on at least a quarterly basis. Any funds awarded under this part shall be the entitlement of only the eligible student under the supervision of the student's parent. The maximum annual amount to which an eligible student is entitled under this part shall be equal to the amount representing the total funding allocation that the student generates under the Tennessee investment in student achievement formula (TISA). For the purpose of funding calculations, each eligible student who participates in the program shall be counted in the enrollment figures for the LEA in which the student resides and is zoned to attend. The IEA funds shall be subtracted from the state funds otherwise payable to the LEA;
  -2
  (A) Create a standard form that a parent of a student may submit to establish the student's eligibility for an IEA. The department shall make the application readily available to interested families through various sources, including the internet; and
  (B) In accordance with state board of education rules promulgated in consultation with the department of education and the department of health, create an application and approval process for nonpublic schools to become participating schools;
  (3) Establish application and participation timelines that shall maximize student and school participation;
  (4) Provide parents of participating students with a written explanation of the allowable uses of IEAs, the responsibilities of parents, and the duties of the department;
  (5) Develop and implement a process to notify parents of their child's potential eligibility to participate in the program and notify the education committee of the senate and the education administration committee of the house of representatives on the process that the department develops pursuant to this subdivision (a)(5);
  (6) Adopt policies necessary for the administration of the IEA program, including:
  (A) Policies for conducting or contracting for random, quarterly, or annual reviews of accounts;
  (B) Policies for establishing or contracting for the establishment of an online anonymous fraud reporting service; and
  (C) Policies for establishing an anonymous telephone hotline for reporting fraud; and
  (7) Post on its website a list of participating schools for each school year, the grades taught in the school and other information that the department determines shall assist parents in selecting participating schools for their children.
  (b) The department may deduct an amount up to six percent (6%) from appropriations used to fund IEAs to cover the costs of overseeing the funds and administering the program.
  (c) In compliance with all state and federal student privacy laws, an LEA shall provide a participating school that has admitted an eligible student under this part with a complete copy of the student's school records in the possession of the LEA.
  T.C.A. § 49-10-1405
Fund Disbursement Frequency:
- Synopsis:
  Quarterly
  , Statute Language:
  (A) Create a standard form that a parent of a student may submit to establish the student's eligibility for an IEA. The department shall make the application readily available to interested families through various sources, including the internet; and
  (B) In accordance with state board of education rules promulgated in consultation with the department of education and the department of health, create an application and approval process for nonpublic schools to become participating schools;
  (3) Establish application and participation timelines that shall maximize student and school participation;
Average Per-Pupil Funding:
- Synopsis:
  100% State and Local Funding
  , Statute Language:
  (1) Remit funds to a participating student's IEA account on at least a quarterly basis. Any funds awarded under this part shall be the entitlement of only the eligible student under the supervision of the student's parent. The maximum annual amount to which an eligible student is entitled under this part shall be equal to the amount representing the total funding allocation that the student generates under the Tennessee investment in student achievement formula (TISA). For the purpose of funding calculations, each eligible student who participates in the program shall be counted in the enrollment figures for the LEA in which the student resides and is zoned to attend. The IEA funds shall be subtracted from the state funds otherwise payable to the LEA;
Income Limit:
- Synopsis:
  None
  , Statute Language:
  (3) "Eligible student" means a resident of this state who:
  (A) Is a child with any of the following disabilities as defined by the state board of education pursuant to § 49-10-102:
  (i) Autism;
  (ii) Deaf-blindness;
  (iii) Hearing impairments;
  (iv) Intellectual disability;
  (v) Orthopedic impairments;
  (vi) Traumatic brain injury;
  (vii) Visual impairments;
  (viii) Developmental delay;
  (ix) Multiple disabilities; or
  (x) A specific learning disability;
  (B) Has an active individualized education program (IEP) in accordance with 34 C.F.R. § 300 et seq., § 49-10-102, and regulations of the state board of education with one (1) of the disabilities pursuant to subdivision (3)(A) as the primary or secondary disability in effect at the time the department receives the request for participation in the program; and
  (C) Meets at least one (1) of the following requirements:
  (i) Was previously enrolled in and attended a Tennessee public school for the one (1) full school year immediately preceding the school year in which the student receives an individualized education account (IEA);
  (ii) Is enrolling in a Tennessee school for the first time; or
  (iii) Received an individualized education account (IEA) in the previous school year;
Prior Year Public School Requirement:
- Synopsis:
  Yes, with exceptions
  , Statute Language:
  (i) Was previously enrolled in and attended a Tennessee public school for the one (1) full school year immediately preceding the school year in which the student receives an individualized education account (IEA);
Geographic Limit:
- Synopsis:
  Statewide
  , Statute Language:
  (3) "Eligible student" means a resident of this state who:
Additional Eligibility Check:
- Synopsis:
  IEP
  , Statute Language:
  Section 49-10-1405 - Administration of IEA program by department
  (a) In administering the IEA program, the department shall:
  (1) Remit funds to a participating student's IEA account on at least a quarterly basis. Any funds awarded under this part shall be the entitlement of only the eligible student under the supervision of the student's parent. The maximum annual amount to which an eligible student is entitled under this part shall be equal to the amount representing the total funding allocation that the student generates under the Tennessee investment in student achievement formula (TISA). For the purpose of funding calculations, each eligible student who participates in the program shall be counted in the enrollment figures for the LEA in which the student resides and is zoned to attend. The IEA funds shall be subtracted from the state funds otherwise payable to the LEA;
  -2
  (A) Create a standard form that a parent of a student may submit to establish the student's eligibility for an IEA. The department shall make the application readily available to interested families through various sources, including the internet; and
  (B) In accordance with state board of education rules promulgated in consultation with the department of education and the department of health, create an application and approval process for nonpublic schools to become participating schools;
  (3) Establish application and participation timelines that shall maximize student and school participation;
  (4) Provide parents of participating students with a written explanation of the allowable uses of IEAs, the responsibilities of parents, and the duties of the department;
  (5) Develop and implement a process to notify parents of their child's potential eligibility to participate in the program and notify the education committee of the senate and the education administration committee of the house of representatives on the process that the department develops pursuant to this subdivision (a)(5);
  (6) Adopt policies necessary for the administration of the IEA program, including:
  (A) Policies for conducting or contracting for random, quarterly, or annual reviews of accounts;
  (B) Policies for establishing or contracting for the establishment of an online anonymous fraud reporting service; and
  (C) Policies for establishing an anonymous telephone hotline for reporting fraud; and
  (7) Post on its website a list of participating schools for each school year, the grades taught in the school and other information that the department determines shall assist parents in selecting participating schools for their children.
  (b) The department may deduct an amount up to six percent (6%) from appropriations used to fund IEAs to cover the costs of overseeing the funds and administering the program.
  (c) In compliance with all state and federal student privacy laws, an LEA shall provide a participating school that has admitted an eligible student under this part with a complete copy of the student's school records in the possession of the LEA.
  T.C.A. § 49-10-1405
Homeschool Compatible:
- Synopsis:
  Yes
  , Statute Language:
  (3) "Eligible student" means a resident of this state who:
  (A) Is a child with any of the following disabilities as defined by the state board of education pursuant to § 49-10-102:
  (i) Autism;
  (ii) Deaf-blindness;
  (iii) Hearing impairments;
  (iv) Intellectual disability;
  (v) Orthopedic impairments;
  (vi) Traumatic brain injury;
  (vii) Visual impairments;
  (viii) Developmental delay;
  (ix) Multiple disabilities; or
  (x) A specific learning disability;
  (B) Has an active individualized education program (IEP) in accordance with 34 C.F.R. § 300 et seq., § 49-10-102, and regulations of the state board of education with one (1) of the disabilities pursuant to subdivision (3)(A) as the primary or secondary disability in effect at the time the department receives the request for participation in the program; and
  (C) Meets at least one (1) of the following requirements:
  (i) Was previously enrolled in and attended a Tennessee public school for the one (1) full school year immediately preceding the school year in which the student receives an individualized education account (IEA);
  (ii) Is enrolling in a Tennessee school for the first time; or
  (iii) Received an individualized education account (IEA) in the previous school year;
Enrollment Cap:
- Synopsis:
  None
Lottery:
- Synopsis:
  None
Testing:
- Synopsis:
  National/State
  , Statute Language:
  (e) For participating students in grades three through eight (3-8), a parent shall ensure that the student is annually administered either a nationally norm-referenced test identified by the department or the Tennessee comprehensive assessment program (TCAP) tests or any future replacements of the TCAP tests. The tests should, at a minimum, measure learning in mathematics and English language arts. Results of the testing shall be reported to the parent. Students with disabilities who would have participated in the alternate assessment, as determined on the student's IEP, are exempt from this requirement.
Authorized Use of Funds:
- Synopsis:
  Private School Tuition
  Online Education
  Education Therapies
  Private Tutoring
  Public School Services (Classes and/or Extracurricular)
  Transportation
  ESA Management Fees
  Textbooks
  Curricula and Supplementary Materials
  Computers/Technology
  Testing Fees
  College Savings Plan
  College Tuition/Fees
  College Textbooks
  , Statute Language:
  (a) A parent of an eligible student shall qualify to participate in the program if the parent signs an agreement promising:
  (1) To provide an education for the participating student in at least the subjects of English language arts, mathematics, social studies, and science; and
  (2) Not to enroll the parent's eligible student in a public school during participation in the IEA program and to release the LEA in which the student resides and is zoned to attend from all obligations to educate the student. Participation in the program shall have the same effect as a parental refusal to consent to the receipt of services under 20 U.S.C. § 1414 of the Individuals with Disabilities Education Act (IDEA).
  (b) Parents shall agree to use the funds deposited in a participating student's IEA for any, or any combination, of the following expenses of the participating student:
  (1) Tuition or fees at a participating school;
  (2) Textbooks required by a participating school;
  (3) Tutoring services provided by a tutor or tutoring facility that meets the requirements set by the department and the state board of education;
  (4) Payment for purchase of curriculum, including any supplemental materials required by the curriculum;
  (5) Fees for transportation paid to a fee-for-service transportation provider;
  (6) Tuition or fees for a nonpublic online learning program or course that meets the requirements set by the department and the state board of education;
  (7) Fees for nationally standardized norm-referenced achievement tests, Advanced Placement examinations, or any examinations related to college or university admission;
  (8) Contributions to a Coverdell education savings account established under 26 U.S.C. § 530 for the benefit of the participating student, except that funds used for elementary or secondary education expenses shall be for expenses otherwise allowed under this section;
  (9) Educational therapies or services provided by therapists that meet the requirements set by the department and the state board of education;
  (10) Services provided under a contract with a public school, including individual classes and extracurricular programs;
  (11) Tuition or fees at an eligible postsecondary institution;
  (12) Textbooks required for courses at an eligible postsecondary institution;
  (13) Fees for the management of the IEA by private financial management firms;
  (14) Computer hardware or other technological devices approved by the department or a licensed treating physician, if the computer hardware or other technological device is used for the student's educational needs; or
  (15) Contributions to an achieving a better life experience account in accordance with the ABLE Act, compiled in title 71, chapter 4, part 8, and the rules promulgated pursuant thereto, for the benefit of a participating student; provided, that the funds are used only for the student's education expenses subject to the rules established by the achieving a better life experience program and that the student meets the qualifications to participate in the achieving a better life experience program pursuant to the ABLE Act, and § 529A of the Internal Revenue Code of 1986 (26 U.S.C. § 529A), as amended, and all rules, regulations, notices, and interpretations released by the United States department of treasury, including the internal revenue service.
  (c) Parents may make payments for the costs of educational programs and services not covered by the funds in their IEA.
  (d) A participating school shall notify the department whether the school provides inclusive educational settings. The department shall indicate those schools that provide inclusive educational settings in its posting of participating schools on its website under § 49-10-1405(a)(7).
  (e) For participating students in grades three through eight (3-8), a parent shall ensure that the student is annually administered either a nationally norm-referenced test identified by the department or the Tennessee comprehensive assessment program (TCAP) tests or any future replacements of the TCAP tests. The tests should, at a minimum, measure learning in mathematics and English language arts. Results of the testing shall be reported to the parent. Students with disabilities who would have participated in the alternate assessment, as determined on the student's IEP, are exempt from this requirement.
  (f) For purposes of continuity of educational attainment, a student who enrolls in the program shall remain eligible until the participating student returns to a public school, graduates from high school, or reaches twenty-two (22) years of age by August 15 for the next school year, whichever occurs first.
  (g) Notwithstanding subdivision (a)(2), a participating student may return to the student's LEA at any time after enrolling in the program. Upon a participating student's return to the student's LEA, the student's IEA shall be closed, and any remaining funds shall be returned to the state treasurer to be placed in the Tennessee investment in student achievement formula (TISA) account of the education trust fund of 1992 under §§ 49-3-357 and 49-3-358.
  (h) Any funds remaining in a student's IEA upon graduation from high school may be used to attend or take courses from an eligible postsecondary institution, with qualifying expenses subject to the applicable conditions of subsection (b).
  (i) A participating student's IEA shall be closed, and any remaining funds shall be returned to the state treasurer to be placed in the Tennessee investment in student achievement formula (TISA) account of the education trust fund of 1992 under §§ 49-3-357 and 49-3-358, if a participating student graduates from a postsecondary institution, after a period of four (4) consecutive years after a student enrolls in a postsecondary institution, or after any period of four (4) consecutive years after high school graduation in which the student is not enrolled in an eligible postsecondary institution, whichever occurs first.
  (j) Funds received pursuant to this part do not constitute income taxable to the parent of the participating student or to the student under title 67, chapter 2. All contributions or distributions made to, or on behalf of, participating students pursuant to any IEA authorized by this part are exempt from all state and local taxation under title 67 or other state law.

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TENNESSEE: Individualized Education Account Program