1. (a)

   1. (1) A private school shall notify the Department of Education of its intent to become a participating school in the Arkansas Children’s Educational Freedom Account Program.

   2. (2) The department shall certify a private school as a participating school if the private school:

      1. (A)

2. (i) Offers in-person classroom instruction within the geographic limits of the State of Arkansas or is a school that operates exclusively as a virtual school and maintains a registered agent who is a resident of the State of Arkansas.

   1. (ii)
3. (a) (a) A school located outside the State of Arkansas that was approved under the Succeed Scholarship Program, Arkansas Code § 6-41-901 et seq. [repealed], shall only be considered approved for students who attended the school under the Succeed Scholarship Program [repealed] and continue to be enrolled.

4. (b) (b) The school shall not be approved for any new students;

   1. (B) Complies with one (1) of the following:

      1. (i) Meets 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 that meets the following minimum criteria:
5. (a) (a) Has been accrediting schools for at least three (3) years;

6. (b) (b) Requires as part of its accreditation process both a school self-study and an onsite review by a visiting team, or a virtual review for a fully virtual school, and makes the results available to the department; or

   1. (c) (c) Periodically reviews participating schools’ accreditation status, including an on-site visit and review at least every seven (7) years; or

      1. (ii)
7. (a) (a) Is an applicant for accreditation to or is an associate member of the Arkansas Nonpublic School Accrediting Association, Inc., or its successor, or another accrediting association recognized by the state board and files a report with the department detailing the school’s progress towards accreditation annually by September 30.

8. (b) (b) However, a private school under subdivision (a)(2)(B)(ii)(a) must be fully accredited by July 1 of the fourth year after applying for participation in the program.

   1. (c) (c) A participating school that fails to attain accreditation within four (4) years after being approved to participate in the program shall notify the department within thirty (30) days and will be deemed ineligible to participate in accordance with subsection (b) of this section;

      1. (C) Meets one (1) or more of the following criteria:

         1. (i) Has been in operation for at least one (1) school year;
         2. (ii) Provides a statement by a certified public accountant confirming that the school is insured and has sufficient capital or credit to operate in the upcoming school year; or
         3. (iii) Files with the department a surety bond or letter of credit for the amount equal to the account funds needed by the school for any quarter; and

      2. (D)

         1. (i) Attests in writing to the following:
9. (a) (a) The private school does not discriminate on any basis prohibited by the Civil Rights Act of 1964, 42 U.S.C. § 2000d, as it existed on January 1, 2023;

10. (b)

    1. (1) (b)(1) All private school personnel have cleared a background check every five (5) years and with fingerprinting documentation on file.

    2. (2) (2) Participating schools must comply with subdivision (a)(2)(D)(i)(b)(1) of this section by August 1 immediately preceding the school year;

       1. (c) (c) The participating private school does not employ any individual who may reasonably pose a risk to the appropriate use of EFA funds if disbursed;

          1. (d) (d) The private school only employs or contracts with teachers who hold at least a baccalaureate degree or have equivalent documented experience, as determined by the private school;
11. (e) (e) The private school holds valid occupancy of buildings as required by the relevant jurisdiction in which the private school is located; and

12. (f) (f) The private school operates according to its published disciplinary procedures that, at a minimum, outline the terms and conditions for when a student may be expelled.

    1. (ii) Participating schools shall cooperate with the department when complaints are made alleging the participating school has violated any of the attestations made in subdivision (a)(2)(D)(i) of this section.

13. (b) A private school will be ineligible to participate in the Arkansas Children’s Educational Freedom Account Program if the participating private school:

    1. (1) Loses its accreditation status after having been previously approved under subdivision (a)(2)(B)(i) of this section;
    2. (2) Is ineligible or unable to continue the accreditation process, as determined by the accrediting association, after being approved under subdivision (a)(2)(B)(ii) of this section;
    3. (3) Violates the terms of subdivision (a)(2)(D) of this section;
    4. (4) Fails to cooperate with the department pursuant to subdivision (c)(4) of this section; or

    5. (5) Fails to comply with all applicable state laws and rules governing private schools, or with all applicable health and safety laws and rules.

       1. (c)
    6. (1) A participating private school shall notify the department within thirty (30) days after losing accreditation or taking any action rendering the school ineligible to participate in the Arkansas Children’s Educational Freedom Account Program pursuant to subsection (b) of this section.
    7. (2) The department will suspend the processing of invoices submitted by a private school upon receipt of notice required under subdivision (c)(1) of this section.

    8. (3)

       1. (A) A private school may apply for reinstatement if it returns to compliance with the requirements of subsection (a) of this section.

       2. (B) The department shall:

          1. (i) Determine whether the private school is in compliance with the requirements of subsection (a) of this section; and
          2. (ii) Issue a formal notice of its determination to the private school and to families of students participating in the Arkansas Children’s Educational Freedom Account Program at the private school.
    9. (4) A private school applying for reinstatement under this section shall provide documentation to the department of the private school’s efforts to return to compliance with subsection (a) of this section.

    10. (5)

        1. (A) The private school may:

           1. (i) Request a hearing before the state board; or
           2. (ii) Waive its hearing and instead submit evidence to the department.
        2. (B) Upon receipt of the evidence, the department shall issue a decision on the private school’s reinstatement in writing to the private school.

        3. (C) A private school may appeal a final decision by the department to the state board.

           1. (d)
    11. (1) The department shall publish on its website a service provider application form by which education service providers shall be accepted for review on a rolling basis throughout the year.

    12. (2) An applying education service provider shall attest to the following:

        1. (A) The education service provider does not discriminate on any basis prohibited by the Civil Rights Act of 1964, 42 U.S.C. § 2000d, as it existed on January 1, 2023;

        2. (B) The education service provider:

           1. (i) Is not an individual who may reasonably pose a risk to the appropriate use of EFA funds if disbursed; and
           2. (ii) Does not employ any individual who may reasonably pose a risk to the appropriate use of EFA funds if disbursed;
        3. (C) The education service provider acknowledges whether it offers student-facing services and whether it offers full-time enrollment to participating students; and

        4. (D)

           1. (i) All personnel of student-facing education service providers have cleared a background check every five (5) years and have fingerprinting documentation on file.
           2. (ii) Virtual direct instructional providers, for whom fingerprinting is not required by Arkansas law, are exempt from the fingerprinting requirement in subdivision (d)(2)(D)(i) of this section.
           3. (iii) Education service providers shall comply with any applicable fingerprinting and background check requirements by August 1 or within thirty (30) days of being approved as providers during a school year.

    13. (3) In addition to the requirements in subdivision (d)(2) of this section, all full-time student-facing applicant providers, including parents of home school students, shall further attest that they will:

        1. (A) Administer assessments to participating students pursuant to 6 CAR § 35-111; and

        2. (B) Provide an education for participating students in at least the subjects of:

           1. (i) English language arts;
           2. (ii) Mathematics;
           3. (iii) Social studies; and
           4. (iv) Science.
    14. (4) As part of the service provider application form, all full-time student-facing applicant providers shall provide additional details on the provider’s resources, services, educational program, or curriculum, as required by the department.

    15. (5) The department’s approval of education service providers shall further be based on a review and confirmation that the following requirements are satisfied:

        1. (A) The education service provider supplies the department with current and complete contact information;
        2. (B) An education service provider that offers therapies or diagnostic services to a student with a disability is licensed or accredited by the appropriate state or national governing body;
        3. (C) An education service provider who only provides professional services submits to the department a list of all services offered along with corresponding prices or rates, which the department may make available to the public and therapists and tutors (specialists services);
        4. (D) An education service provider who only provides products as a vendor through the marketplace need not provide a list of all products offered so long as all of its products that may be considered eligible expenses are listed, with the price of the item, on the marketplace; and

        5. (E)

           1. (i) The student-facing education service provider supplies proof of one (1) of the following credentials for any employee or individual that provides instructional or tutoring services:
14. (a) (a) Holds an Arkansas standard or provisional professional teaching license or is otherwise qualified through a department-recognized alternative route program;

15. (b) (b) Meets the requirements set by a tutoring organization accredited by an accrediting association recognized by the state board;

    1. (c) (c) Is employed in a teaching or tutoring capacity at an accredited institution of higher education; or

       1. (d) (d) Holds a baccalaureate or graduate-level degree.

          1. (ii) The department may, on a case-by-case basis, approve providers whose employees do not, or an individual who does not, have one (1) of the credentials set out above if:
16. (a) (a) The individual has a prior teaching experience of not fewer than three (3) years which demonstrates special skills, knowledge, or expertise that qualifies the individual to provide instruction on a specific subject; or

17. (b) (b) Evidence is found that the individual has subject matter expertise in their field or can otherwise demonstrate possession of, or a satisfactory plan to acquire, the necessary skills, knowledge, or resources to teach a particular course or tutor in a particular subject area.

    1. (6) The department may conduct site visits to education service providers.

18. (e)

    1. (1) The department’s approval of a school or education service provider shall serve as statewide approval of such provider for purposes of the Arkansas Children’s Educational Freedom Account Program.
    2. (2) A list of each participating school and service provider’s name, qualifying materials, services offered, and any relevant credentials shall be available on the department’s website in a format easily accessible to the public.

19. (f) Private schools that were approved under the Succeed Scholarship Program [repealed] outside of the State of Arkansas may continue to receive funds for participating Succeed Scholarship students for the remainder of the participating students’ eligibility but shall not:

    1. (A) Admit new students; or

       1. (B) Otherwise participate in the Arkansas Children’s Educational Freedom Account Program.
20. (g) To provide proof of financial viability to repay any funds that may be owed to the department, an education service provider that receives a minimum of one hundred thousand dollars ($100,000) in EFA funds shall file a surety bond with the department named as obligee in an amount equal to the aggregate value of payments expected to be received during the school year.

21. (h)

    1. (1) Participating schools and service providers shall not charge an account holder tuition or fees for any services on behalf of a participating student in an amount that is different than the amount otherwise charged on behalf of a student who does not participate in the Arkansas Children’s Educational Freedom Account Program, but may apply discounts to tuition and fees that are generally available to students regardless of their participation in the Arkansas Children’s Educational Freedom Account Program.
    2. (2) Participating schools receiving EFA funds shall apply any scholarship awards, tuition rates, and tuition discounts toward an approved student’s tuition, costs, and fees before EFA funds are applied to any invoiced charges by the participating school.
    3. (3) The department shall monitor tuition and fee increases from participating private schools and providers annually.
    4. (4) The department may ask participating private schools and providers for rationale for increases in tuition or fee amounts.

    5. (5) The department may prohibit a participating private school or provider from participating in the Arkansas Children’s Educational Freedom Account Program if the department determines that tuition or fee increases are unreasonable or arbitrary.

       1. (i)
    6. (1) Participating schools and service providers shall not refund, rebate, or share EFA funds directly with account holders.
    7. (2) In the event that a participating school or service provider receives funds distributed from an EFA to which it is not entitled, the participating school or service provider shall remit the funds to the EFA from which the funds were originally disbursed.
    8. (3) If a participating school or service provider is required to return funds to an EFA that has been closed, the participating school or service provider shall remit the funds to the department directly.

    9. (4)

       1. (A) The department may require a participating school or service provider to remit funds if the department identifies funds distributed to the participating school or service provider to which the participating school or service provider is not entitled.
       2. (B) The participating school or service provider shall remit the funds within ten (10) business days of receipt of written notice by the department that the entity is required to refund a payment.

       3. (C) When required to refund a payment, a participating school or service provider may also:

          1. (i) Provide documentation or written justification showing that the participating school or service provider was entitled to the refunded payment if the vendor believes the department acted in error; and
          2. (ii) Submit a claim with the Arkansas State Claims Commission if the participating school or service provider believes that the entity is entitled to funds that it was required to refund under this part.

22. (j) The department may suspend or terminate a participating school or service provider from participating in the Arkansas Children’s Educational Freedom Account Program if the department determines the school has failed to comply with the requirements of the Arkansas Children’s Educational Freedom Account Program, Arkansas Code § 6-18-2501 et seq., or this part pursuant to the following:

    1. (1) For a private school only, disqualification under the terms of subsection (b) of this section;
    2. (2) For an education service provider only, failure to comply with any of the criteria detailed in subsection (d) of this section or with all applicable health and safety laws and rules;
    3. (3) Demonstration of a gross or persistent lack of academic competence as determined by the department based on a student’s academic achievement and growth;
    4. (4) Intentional or substantial misrepresentation of information to the department or to account holders;
    5. (5) Failure to refund any overpayments to the department within thirty (30) days of receiving a written request, including a request by electronic mail; or
    6. (6) Repeated failure to provide participating students with promised educational goods or services, as determined by the department over the course of the program.

23. (k)

    1. (1) Nothing shall be construed to expand the regulatory authority of the department to impose additional rules on participating schools and service providers beyond those expressly set out in this part to enforce the requirements of the Arkansas Children’s Educational Freedom Account Program.

    2. (2)

       1. (A) A participating school or service provider shall not be required to alter its creed, practices, admissions policy, or curriculum to:

          1. (i) Receive approval from the department; or
          2. (ii) Accept payments from an EFA.

       2. (B) However, the participating school shall not discriminate against a student or applicant in a way that would violate subdivision (d)(2)(A) of this section.

          1. (l)
    3. (1) An accrediting association seeking recognition by the state board shall file a petition for recognition with the state board.
    4. (2) The state board shall vote on whether to approve a petition within ninety
    5. (90) days from the day the petition is filed.
    6. (3) The petition shall include information necessary to determine that the petitioner satisfies the requirements of subdivision (a)(2)(B)(i) of this section.

Codification Notes: The Succeed Scholarship Program, Arkansas Code § 6-41-901 et seq., was repealed by Acts 2023, No. 237, § 52.