1. (a) The department may refuse to allow an ESA participating entity to continue participation in the ESA program and revoke the ESA participating entity's status as an ESA participating entity if the department determines that the ESA participating entity accepts payments made from an ESA account under this article and:

   1. (1) has failed to provide any educational service required by state or federal law to an eligible student receiving instruction from the ESA participating entity;
   2. (2) has routinely failed to meet the requirements of an ESA participating entity under the ESA program; or
   3. (3) violates section 7 of this chapter.
2. (b) If the department revokes an ESA participating entity's status as an ESA participating entity in the ESA program, the department shall provide notice of the revocation within thirty (30) days of the revocation to each parent of an eligible student and to each emancipated eligible student receiving instruction from the ESA participating entity who has paid the ESA participating entity from the eligible student's ESA account.
3. (c) The department may permit a former ESA participating entity described in subsection (a) to reapply with the department for authorization to be an ESA participating entity on a date established by the department, which may not be earlier than one (1) year after the date on which the former ESA participating entity's status as an ESA participating entity was revoked under subsection (a). The department may establish reasonable criteria or requirements that the former ESA participating entity must meet before being reapproved by the department as an ESA participating entity.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.66; P.L.199-2025, SEC.6; P.L.213-2025, SEC.232; P.L.23-2026, SEC.219.