(a)

1. (1) Once families and participating schools have been approved to participate in the Arkansas Children’s Educational Freedom Account Program, the Department of Education shall continue to make quarterly payments to the EFA on behalf of the approved students and families to pay for eligible expenses invoiced by participating schools or service providers with the exception of reimbursable preapproved expenditures as defined in subdivision (a)(2)(F) of this section, which can be paid at the time of services rendered or goods purchased.

2. (2)

   1. (A) The department shall make payments in installments from the participating student’s EFA to the participating school or service provider.
   2. (B) Participating schools or service providers, or third-party vendors, shall issue an itemized invoice to approved students and families for documentation of expense:

(i) Type;

1. (ii) Amount; and

   1. (iii) Recipient.

   2. (C) Approved students and families shall verify and submit payment requests, identifying the:

      1. (i) Participating school or service provider to receive payment;
      2. (ii) The payment amount; and
      3. (iii) The expense type.
   3. (D) Approved students and families shall include invoices for review and documentation during the payment submission process.

   4. (E)

      1. (i) Payment shall be made to the participating school or service provider for authorized expenditures following review and approval of the expense request and documentation by the department.
      2. (ii) A parent of a participating student may not receive payment from their student’s EFA account unless it is reimbursement for a preapproved eligible expense.

   5. (F)

      1. (i) A parent of a participating student may only be reimbursed for preapproved eligible expenses to include the following:

(b) (b) Curriculum;

1. (c) (c) Online course tuition and fees;

   1. (d) (d) Tutoring fees;

(f) (f) Transportation.

1. (ii)

(b) (b) Once approved, the family may:

1. (1) (1) Incur the cost; and
2. (2) (2) Submit a receipt for services that match the preapproved expense.

(b) In the event an account holder, parent, or participating student is found to be ineligible to participate in the program or in the event the participating student enrolls in a public school:

1. (1) The account will be frozen; and

2. (2) Any EFA funds within the account shall be returned to the department.

   1. (c)
3. (1) In the event that EFA funds are pending payment to a participating school or service provider for an authorized expenditure at the time the account holder, parent, or participating student are found to be ineligible, the participating school or service provider shall remit the funds to the EFA from which the funds were originally disbursed.
4. (2) Funds remitted back to the EFA from a participating school or service provider under subdivision (c)(1) of this section shall also be returned to the department in accordance with subsection (b) of this section.
5. (3) 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.

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

   1. (A) Provide documentation or written justification showing that the participating school or service provider was entitled to the refunded payment if the vendor believes:

      1. (i) The department acted in error; and
      2. (ii) Services were already rendered; and
   2. (B) 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 remit under this part.