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HOUSE BILL NO. 359
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on Education
on February 9, 2026)
(Patron Prior to Substitute--Delegate Helmer)
A BILL to amend the Code of Virginia by adding in Chapter 8 of Title 22.1 an article numbered 1.1, consisting of sections numbered
22.1-101.2
through
22.1-101.17
, relating to use of public funds for private elementary or secondary school tuition; standards.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 8 of Title 22.1 an article numbered 1.1, consisting of sections numbered
22.1-101.2
through
22.1-101.17
, as follows:
Article
1.1
.
Use of Public Funds
for
Private
School Tuition; Standards
.
§
22.1-101.2
. Purpose.
T
he
purpose of this article
is to ensure that any private elementary or secondary school
in
the Commonwealth
that receives tuition payments, in whole or in part, from public funds adheres
to certain accountability, transparency, and civil
rights requirements comparable to those
imposed on public schools.
§
22.1-101.3
. Definitions.
As used
in this article, unless the context requires a different meaning:
"Accountability rating" means the performance designation assigned by the Board pursuant to the state accountability and performance framework in effect at the relevant time.
"Excluded accounts" means contributions to an
account
established solely for education expenses pursuant to § 529A of the Internal Revenue Code of 1986, as amended.
"
Participating private school
"
means any private elementary or secondary school located
in the Commonwealth that enrolls one or more students whose tuition is paid, in whole or
in part, by one of the following public tuition
assistance vehicles
, regardless of whether such school accepts tuition payments directly from a family or indirectly through an intermediary
vehicle
:
1. A
state-funded voucher program created by the General Assembly;
2.
A
federal voucher program,
including any federal program that provides direct tuition payments or tuition subsidies for elementary or secondary students to enroll in a private school, to the extent permitted by federal law
;
3.
A s
cholarship
-granting organization
authorized under Virginia law that
distributes tuition scholarships funded
in whole or in part through
state
or federal t
ax credits
or
other tax-favored educational funding mechanisms
other than a scholarship foundation approved pursuant to §
58.1-439.27
;
4
. A
n
e
ducation
savings account
funded or subsidized through state or
federal law
, including any account or mechanism through which public funds, public subsidies, or public tax advantages are used to pay for private elementary or secondary education expenses, to the extent permitted by federal law
;
5
.
Except in the case of excluded accounts,
a tax
credit scholarship or any other tax-favored education
al
funding mechanism
; or
6. Any other public tuition assistance vehicle or substantially similar mechanism that uses public funds or public subsidies to facilitate enrollment in a private elementary or secondary school, to the extent permitted by federal law
.
"
Public assistance student
"
means any student whose tuition
at a participating private school
is
paid
,
in whole or in part
,
by one or more of the tuition
assistance vehicles listed in subdi
visions 1 throu
gh
6
of the definition of "participating private school
,
" regardless of whether such school accepts tuition payments directly from
the student's
family or indirectly through an intermediary vehicle
.
"Public tuition assistance vehicle" does not include any tax credit, scholarship, or assistance provided pursuant to Article 13.3 (§
58.1-439.25
et seq.) of Chapter 3 of Title 58.1.
"Scholarship-granting organization" means any nonprofit or for-profit entity, fund, or organization that collects, manages, or distributes funds intended to pay or reimburse tuition or mandatory educational fees for enrollment in a private elementary or secondary school for a student who is a resident of the Commonwealth or who attends a private elementary or secondary school located in the Commonwealth, including entities operating under state or federal voucher, scholarship, education savings account, or tax-credit programs, to the extent permitted by federal law.
"Scholarship-granting organization" does not include any scholarship foundation that awards scholarships pursuant to Article 13.3 (§
58.1-439.25
et seq.) of Chapter 3 of Title 58.1.
"
Tax-favored educational
funding mechanism
"
means any program, account, credit, deduction, deferral, or other arrangement under federal or state tax law under which contributions, distributions, or expenditures used to pay or reimburse private
elementary or secondary
school tuition or mandatory educational fees receive preferential tax treatment, whether the tax benefit is claimed by a donor, contributor, parent, student, or other taxpayer, to the extent permitted by federal law.
"Tax-favored educational funding mechanism" does not include any tax credit, scholarship, or assistance provided pursuant to Article 13.3 (§
58.1-439.25
et seq.) of Chapter 3 of Title 58.1.
§
22.1-101.4
. S
tandards of Learning
assessments and accountability
.
A.
Each participating private school shall require all
enrolled
students, including
each public assistance student and each other student
, to participate in the Standards of Learning assessments, or
any successor statewide assessments, at the grade levels and in the subjects required
of
public
school students.
B.
Participating private schools shall reimburse the
Department
for the full cost of administering, scoring, and reporting
the results of
such
assessments
for their students. The Superintendent shall establish a per-pupil
rate based on the average cost of providing
such
testing and all
associated
required support to students
at participating private schools
.
C.
Upon request from a participating private school,
the Department
shall provide an estimate of the
cost of Standards of Learning a
ssessment administration
for the upcoming academic year.
D
. Participating private schools shall report
student
results
on Standards of Learning assessments
to
the Department
in a manner consistent
with
the reporting required of
public
school
s
, including disaggregation by student subgroup (race,
ethnicity, disability status, English-learner status, and socioeconomic status).
The Department
shall publish
such
results on its public website.
E.
If a participating private school
(i)
receives
the lowest possible
accountability rating
or
(ii)
in the case that the accountability system includes
more than three
accountability ratin
gs,
receives
one of the two lowest accountability ratings,
such
rating shall trigger the eligibility
consequences set forth in
§
22.1-101.5
.
§
22.1-101.5
. Eligibility and compliance
.
A.
No participating private school may enroll public
assistance students unless it meets the
requirements
set forth in this article
.
The enrollment of
public assistance students
is a privilege, not a right, and is conditioned on
continuing compliance.
B
. All participating private schools
shall
receive accountability ratings from the Board, aligned as closely as possible with the current accountability framework for
public schools and approved by the Board. Participating private schools
shall
furnish all
data required by the Board to issue an accountability rating.
If a participating private
school
(i) (a) receives the lowest possible accountability rating or (b) in the case that the accountability system includes more than three accountability ratings, receives one of the two lowest accountability ratings
or
(ii)
fails to meet accreditation standards, the school shall be ineligible to
enroll any new public
assistance students for a period of five years from the date th
at such
rating or accreditation failure is issued. The five-year period shall run regardless of any
subsequent improvement in the school
'
s rating, if one is issued, during
such period
.
C
. A public
assistance student already enrolled at a school declared ineligible under
subsection B
may complete the current school year at that school but shall not be
permitted to reenroll using any form of public tuition
assistance funding.
D
. At the end of
any
five-year period
described in subsection B
, a
private
school may apply to
the Board to
resume enrolling public
assistance
students. The Board shall evaluate the school
'
s compliance with
the standards set forth in this a
rticle
before granting permission to reapply.
§
22.1-101.6
. Nondiscrimination and admissions
.
A
. Participating private schools shall not discriminate in admissions,
enrollment, discipline
,
retention
, or access to educational programs and services
on the basis of race, color, religion, national origin,
sex, sexual orientation, gender identity or expression, disability, special
education
status, language proficiency, or socioeconomic status.
B
. Each participating private school shall publicly state on its website, in
enrollment
materials, and in any promotional literature
,
that it admits students without regard to the
characteristics listed
in subsection A
and will affirm the identities of all students while providing
appropriate accommodations.
C
.
A participating private school that provides religious instruction or worship shall provide a meaningful and nonpunitive opt-out for any public assistance student whose parent requests such opt-out. The school shall provide a reasonable alternative educational activity during the period of religious instruction or worship and shall not penalize, discipline, or otherwise discriminate against a public assistance student for exercising such opt-out.
D. Nothing in this section shall be construed to
:
1.
P
rohibit a participating private school from offering religious instruction or worship generally, or from maintaining its religious mission or character
;
2.
R
equire a participating private school that is a religious organization, or that is operated by a religious organization, to modify employment practices to the extent such practices are permitted under applicable federal or state law
; or
3.
P
rohibit a participating private school with a religious mission from maintaining its religious character, governance, or instructional philosophy, or from making employment decisions consistent with federal constitutional protections.
§
22.1-101.7
. Teacher and staff standards
.
A
. Teachers providing instruction in core academic subjects at a participating private school
shall hold a valid Virginia teaching license or an equivalent credential approved by the
Board.
B
. Administrators and counselors
at participating private school
s
shall meet minimum professional qualifications
established by the Board.
C
.
Participating private schools shall not interfere with or retaliate against employees for exercising rights protected under applicable federal or state labor law.
§
22.1-101.8
. Curriculum, instruction, and special education
.
A
. Participating private schools shall adopt curricula that align with the Standards of
Learning or another set of academic standards approved by the Board as
equivalent or superior.
B
. Instructional materials
used b
y participating private schools
shall be available for inspection by parents
of
enrolled students
.
Participating private schools shall provide a process for parents to review instructional
materials and request alternative assignments whe
n
appropriate.
C
. Participating private schools shall not refuse or withdraw admission from a student with a
disability who is otherwise qualified
for admission
. Schools shall develop individualized service plans
consistent with the goals of the student
'
s individualized education program (IEP) and
provide accommodations and services at no additional charge
to the student
. The
Department
or
the
local school
division
in which such a student resides
shall provide technical assistance upon request.
§
22.1-101.9
. Financial transparency and tuition
.
A
. Participating private schools shall submit
annual audited financial statements to
the Department
by October 1
and include such statements in the report required pursuant to §
22.1-101.11
, including total revenues and
expenditures by source, the proportion derived from public
assistance programs, tuition
and fee schedules, and any management or consulting contracts.
B
.
No a
nnual tuition increase for any grade level
at a participating private school
shall exceed the percentage change in
the Consumer Price Index for All Urban Consumers (CPI-U) for the most recent certified
12-
month period, unless the Board grants a waiver for extraordinary
circumstances such as major facility damage or regulatory changes.
C
. Participating private schools shall not levy additional fees on public
assistance students
beyond those charged to other students, except for optional services not required for
enrollment.
§
22.1-101.10
. Student rights and due process
.
A
. Participating private schools shall adopt written discipline procedures providing due
process
protections equivalent to those for public
school students, including notice of
charges, an opportunity to respond, an impartial decision
maker, and an appeal process.
B
. Schools shall maintain a written grievance policy for parents and students, including
procedures for complaints of discrimination or failure to provide accommodations.
C
. Participating private schools shall adopt anti-bullying and anti-harassment policies
consistent with state law and report incidents to
the Department
as prescribed by the
Superintendent.
§
22.1-101.11
. Reporting and accountability
.
A
. Each participating private school shall submit an annual report to
the Departm
ent
by October 1
detailing enrollment, student demographics, academic results, graduation and dropout
data, teacher licensure status, disciplinary incidents, and financial information required
under
§
22.1-101.9
.
B
.
The Department
shall publish
each participating private school's report submitted pursuant to subsection A
, accountability rating, accreditation status, and
tuition schedule
publicly
on its website in an accessible format.
§
22.1-101.12
. Health, safety, and facilities
.
A
. Participating private schools shall comply with all state and local building, fire, and health
codes applicable to public schools.
B
. All employees and volunteers having direct contact with students shall undergo
background checks equivalent to those required of public
school staff.
C
. Schools shall maintain student immunization and health records consistent with public
school
standards.
§
22.1-101.13
. Enforcement and oversight
.
A
. The Superintenden
t
may conduct audits, investigations, and site
inspections
of participating private schools
to verify compliance
with the provisions of this article
.
B
. The Superintendent may impose one or more of the following penalties for violations:
1
.
S
uspension of eligibility to enroll new public
assistance students;
2
.
R
evocation of eligibility
to enroll public assistance students
for up to five years;
3
.
C
ivil penalties not exceeding $10,000 per violation; or
4
.
R
estitution of misused public funds.
C
. A
participating private
school may appeal a penalty
imposed pursuant to subsection B
to the Boar
d
within 30 days of notice
of such penalty
. The
Board shall issue a written decision within 120 days
of such appeal
.
§
22.1-101.14
. Implementation and grace period
.
A
.
Any school that qualifies as a participating private school on July 1, 2026,
shall have
until July 1, 2027,
to come into compliance
with the provisions of this article
.
B
.
Any school that intends to become a participating private school after July 1, 2026, shall fully
comply
with the provisions of this article
before enrolling
any
public
assistance student.
C
.
The Department
shall provide technical assistance, including model policies and reporting
templates,
to participating private schools
.
D.
The Board
may adopt
such
regulations and
the Board and the Department may adopt such
guidance
as may be
necessary for implementation
of this article.
§
22.1-101.15
. Federal law; construction.
A. Nothing in this article shall be construed to impose requirements that are inconsistent with, or preempted by, federal law or federal regulations governing the administration or operation of any federal public tuition assistance vehicle.
B. To the extent any provision of this article is determined to conflict with federal law or federal regulations, such conflicting provision shall be inoperative only to the minimum extent necessary, and the remaining provisions of this article shall remain in full force and effect.
§
22.1-101.16
. Severability.
If any provision of this article or its application to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this article that can be given effect without the invalid provision or application, and to this end the provisions of this article are severable.
§
22.1-101.17
. Scope of article.
The provisions of this article shall not apply to any school for students with disabilities, as that term is defined in §
22.1-319
, that is licensed by the Department.