Regards the ACE Educational Savings Account Program

hb968_00_IN

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 968

2025-2026

Representatives McNally, Synenberg

Cosponsors: Representatives Somani,
Piccolantonio, Lett, Brennan, Rader

To
amend section 3310.70 of the Revised Code
to
revise the operation of the Afterschool Child Enrichment (ACE)
Educational Savings Account Program and to make an appropriation.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
section 3310.70 of the Revised Code be amended to read as follows:

Sec.
3310.70.
(A)
A student is an "eligible student" for purposes of this
section if the student is

at least six but no more than eighteen years old and at least one of
the following conditions is met:

(1)
The student's family adjusted gross income, as defined in section
5747.01 of the Revised Code, is at or below four hundred per cent of
the federal poverty guidelines, as defined in section 5101.46 of the
Revised Code.

(2)
The student's resident district, as defined in section 3310.01 of the
Revised Code, had a chronic absenteeism rate ranked in the highest
ten per cent of school districts in the most recent school year.

(3)
The student's resident district operates one or more school buildings
described in division (A)(1) of section 3310.03 of the Revised Code
or is a district described in division (C) of that section.

(4)
The student's resident district is a school district in which the
pilot program is operating under sections 3313.974 to 3313.979 of the
Revised Code.

For
the purpose of division (A)(1) of this section, a student's parent or
guardian may certify income eligibility to the department of
education by submitting, in a manner determined by the department, an
affidavit affirming the student's family income meets the
requirement, proof of income eligibility under another state or
federal program, or other evidence determined appropriate by the
department.

enrolled in a school district, community school established under
Chapter 3314. of the Revised Code, or STEM school established under
Chapter 3326. of the Revised Code.

(B)(1)
There is hereby established the afterschool child enrichment (ACE)
educational savings account program. The department of education and
workforce shall adopt rules under Chapter 119. of the Revised Code
that prescribe procedures for the establishment of these accounts
in
fiscal years 2022, 2023, and 2024
upon
the request of the parent or guardian of an eligible student

enrolled in a public or nonpublic school or an eligible student who
is exempt from the compulsory attendance law for the purpose of home
education under section 3321.042 of the Revised Code
.
Accounts shall be established on a first-come, first-served basis
according to the availability of funds appropriated for purposes of
this section.

Accounts
shall be used in accordance with division (E) of this section.

Any balance remaining in a student's account after fiscal year 2024
shall remain in that account for use as prescribed in division (D)(3)
of this section.

Except
as provided for in
divisions

division

(C)(3)

and
(D)(3)
of
this section, neither the department nor the vendor shall reclaim any
funds
credited
to
deposited
into
a
student's account.

(2)
The department shall create an online form for parents and guardians
to request the establishment of an account under this section.

(C)(1)
The department shall contract with a vendor for purposes of
administering the provisions of this section and may contract with
the treasurer of state for technical assistance. In selecting a
vendor, the department shall give preference to those vendors who use
a smart phone application that is free for parents or guardians to
use, is capable of scanning receipts, allows users to provide program
feedback, and includes customer service contact information for
parents and guardians who experience technical issues with the
application. For each fiscal year

in which the program operates
,
the department shall pay the vendor not more than three per cent of
the amount appropriated for that fiscal year for purposes of this
section.

(2)
The vendor selected by the department under division (C)(2) of this
section shall do
both

all

of
the following:

(a)

Enable
a student's parent or guardian to directly pay for expenses permitted
under division (E) of this section using moneys deposited into the
student's account under division (D) of this section;

(b)

Monitor
how accounts are used by parents or guardians and recoup moneys that
are used for purposes that are not authorized by this section as
determined by the vendor;

(b)
(c)

Provide the department with a comprehensive list of purchases made
with accounts.

(3)
At no time shall the vendor authorize parents or guardians to use
moneys for purposes that are not authorized by this section as
determined by the vendor. If the vendor authorizes parents or
guardians to use moneys for a specified purpose and later determines
that purpose is not authorized by this section, the vendor may recoup
that money.

(D)(1)
If a parent or guardian makes a request under division (B) of this
section during fiscal year 2022, five hundred dollars shall be
credited to the account established pursuant to the parent's or
guardian's request within fourteen days of the parent's or guardian's
request, and that amount shall be disbursed upon request to the
parent or guardian not later than June 30, 2022, for use in
accordance with division (E) of this section. Any amount remaining in
an account at the end of fiscal year 2022 shall remain in that
account for fiscal year 2023 for use in accordance with division (E)
of this section.

(2)
If a parent or guardian makes a request under division (B) of this
section during fiscal year 2023 or 2024, one
(D)
The department shall deposit one
thousand
dollars
shall
be credited to
into

the
account established pursuant to the parent's or guardian's request
within fourteen days of the parent's or guardian's request
,
and that amount shall be disbursed upon request to the parent or
guardian not later than June 30, 2023, for fiscal year 2023 or June
30, 2024, for fiscal year 2024

for use in accordance with division (E) of this section. If a parent
or guardian had an account established for the previous fiscal year,
that amount shall be
credited
and distributed to
deposited
into
that
account for use in accordance with division (E) of this section.

For
each account credited five hundred dollars for fiscal year 2023 prior
to the effective date of this amendment, the department shall credit
an additional five hundred dollars for that year. The total amount
credited to an account for fiscal year 2023 shall not exceed one
thousand dollars.

Nothing
in division
(D)(2)

(D)

of
this section shall be construed to limit the amount of the total
balance in an account.

(3)
Any amount remaining in an account established under division (B) of
this section at the end of fiscal year 2024 shall remain in that
account for use in accordance with division (E) of this section in
future fiscal years until either the full amount has been spent or
the student graduates from high school. Any amount remaining in the
account of a student who graduates from high school shall be returned
to the department.

(E)
Subject to division (F) of this section, moneys
credited
to
deposited
into
an
education savings account established under division (B) of this
section shall be used by an eligible student's parent or guardian for
any of the following purposes, whether secular or nonsecular:

(1)
Before- or after-school educational programs;

(2)
Day camps, including camps for academics, music, and arts;

(3)

Tuition
at learning extension centers;

(4)
Tuition for learning pods;

(5)
If the student is exempt from the compulsory attendance law for the
purpose of home education under section 3321.042 of the Revised Code,
purchase of curriculum and materials;

(6)
Educational, learning, or study skills services;

(7)

Field
trips to historical landmarks, museums, science centers, and
theaters, including admission, exhibit, and program fees;

(8)
(4)

Language classes;

(9)
(5)

Instrument lessons;

(10)
Tutoring
(6)
School clubs;

(7)
School sports;

(8)
4-H or FFA activities and programs
.

(F)
At no time shall moneys
credited
to
deposited
into
an
account established under division (B) of this section be used for
the purchase of electronic devices.

(G)
The department shall make available to parents and guardians a list
of the purposes for which moneys
credited
to
deposited
into
an
account established under division (B) of this section may be spent
in accordance with division (E) of this section.

(H)

Not
later than December 31, 2023, the department shall prepare a report
regarding the administration of this section, including feedback from
a random sampling of parents and guardians who participate in the
program and submit the report to the general assembly in accordance
with section 101.68 of the Revised Code.
The
department annually may audit the program established under this
section and issue a report about its operation.

(I)
Any school district, community school, or STEM school may advertise
the program established under this section.

Section
2.
That
existing section 3310.70 of the Revised Code is hereby repealed.

Section
3.
All
items in this act are hereby appropriated as designated out of any
moneys in the state treasury to the credit of the designated fund.
For all operating appropriations made in this act, those in the first
column are for fiscal year 2026 and those in the second column are
for fiscal year 2027. The operating appropriations made in this act
are in addition to any other operating appropriations made for these
fiscal years.

Section
4.

1

2

3

4

5

A

EDU
DEPARTMENT OF EDUCATION AND WORKFORCE

B

Dedicated
Purpose Fund Group

C

5DV1

2006B4

Afterschool
Child Enrichment

$0

$5,000,000

D

Dedicated
Purpose Fund Group Total

$0

$5,000,000

E

TOTAL
ALL BUDGET FUND GROUPS

$0

$5,000,000

AFTERSCHOOL
CHILD ENRICHMENT

The
foregoing appropriation item 2006B4, Afterschool Child Enrichment,
shall be used to fund the Afterschool Child Enrichment educational
savings account program established under section 3310.70 of the
Revised Code, as amended by this act.

On
July 1, 2026, or as soon possible thereafter, the Director of Budget
and Management shall transfer $5,000,000 cash from the General
Revenue Fund to the Afterschool Child Enrichment Fund (Fund 5DV1).

Section
5.
Within
the limits set forth in this act, the Director of Budget and
Management shall establish accounts indicating the source and amount
of funds for each appropriation made in this act, and shall determine
the manner in which appropriation accounts shall be maintained.
Expenditures from operating appropriations contained in this act
shall be accounted for as though made in, and are subject to all
applicable provisions of, H.B. 96 of the 136th General Assembly.

Section
6.
Section
3310.70 of the Revised Code is presented in this act as a composite
of the section as amended by H.B. 33 of the 135th General Assembly
and H.B. 45 of the 134th General Assembly. The General Assembly,
applying the principle stated in division (B) of section 1.52 of the
Revised Code that amendments are to be harmonized if reasonably
capable of simultaneous operation, finds that the composite is the
resulting version of the section in effect prior to the effective
date of the section as presented in this act.