K-12 scholarship program

AN ACT Relating to creating school choice with empowerED 1
scholarships using educational savings accounts; amending RCW 2
28A.225.350; reenacting and amending RCW 43.79A.040 and 43.79A.040; 3
adding a new section to chapter 28B.77 RCW; adding a new chapter to 4
Title 28A RCW; adding a new chapter to Title 82 RCW; creating new 5
sections; providing an effective date; and providing an expiration 6
date. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8
NEW SECTION. Sec. 1. (1) The state Constitution makes clear 9
that it is the paramount duty of the state to make ample provision 10
for the education of all children residing within its borders, 11
without distinction or preference on account of race, color, caste, 12
or sex. The legislature finds the state is failing to meet that 13
paramount duty by providing an education system that, as it exists in 14
statute, discriminates based on these protected classes by forcing 15
children into schools based on their zip code. This creates a system 16
where children and their families often have no other choice but a 17
failing local public school. The state does not provide for the 18
education of children outside of the public school system which means 19
the quality of their education is set by what neighborhood they live 20
H-0262.1
HOUSE BILL 1140
State of Washington 69th Legislature 2025 Regular Session
By Representatives Couture, Walsh, Corry, Ley, Jacobsen, and Barnard
Prefiled 12/30/24. Read first time 01/13/25. Referred to Committee
on Education.
p. 1 HB 1140
in. This is a blatant injustice and a profound violation of civil 1
rights. 2
(2) The legislature also recognizes the power entrusted to 3
parents to do what is best for their children. Parents can choose to 4
place their student in a common school, charter public school, 5
private school, micro school, or provide home-based instruction. 6
However, not all parents have access to every option. Public charter 7
schools are limited in number and space, while private school options 8
require an extra financial investment from families. Home school 9
requires both, extra financial and time investments, from parents. 10
The legislature knows that wealthy families can pay to send their 11
students to a private school but the families for many kids in rural 12
and poor communities often do not have this ability. The legislature 13
intends to allow all students regardless of protected or 14
socioeconomic status to have the same opportunity to succeed.15
(3) While the legislature has spent years increasing funding to 16
the public school system, the legislature acknowledges many students 17
have been left behind. National test scores for Washington students 18
have been falling over the last decade and, after extensive school 19
closures, state test scores are down to the lowest levels since 20
administration of the smarter balanced assessment began. For the 21
2023-24 school year, over 60 percent of Washington's students did not 22
meet grade level standards in math and half did not meet grade level 23
standards in English. School closures also disproportionately 24
impacted students with the most need, specifically those from 25
underrepresented communities. Students with disabilities who were 26
eligible for special education services were delayed in getting their 27
needed supports for too long. It is clear Washington state's public 28
school system is failing families by not preparing students for their 29
future. 30
(4) Academic outcomes are not the only reason public schools in 31
Washington are failing students and families. Our schools are unsafe, 32
and it is unacceptable. With a shift in focus toward divisive 33
instruction, rising childhood mental and behavioral health problems, 34
ineffective discipline policies, rampant bullying, drug abuse, and 35
troubling allegations of sexual misconduct, parents, teachers, and 36
communities are abandoning the system. Recent data paints a 37
disturbing picture: 18 percent of students statewide report feeling 38
unsafe at school, and a staggering 70 percent of teachers feel afraid 39
to go to work. Even more alarming, 79 percent of teachers have been 40
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subjected to physical violence, and 67 percent say that violence has 1
driven them to consider leaving the profession. Yet, school districts 2
and the state continue failing to fix these issues, allowing this 3
crisis to fester. Since the 2018-19 school year, there has been a 10 4
percent increase in private school students and an over 32 percent 5
increase in students receiving home-based instruction. This means 6
less funding for public schools. Pair that with communities failing 7
to pass levies and bonds and you have an even tougher financial 8
dilemma for public schools. If Washington is serious about fixing its 9
schools, we must allow funding to follow students, shattering the 10
public school monopoly and forcing the system to address its deep-11
rooted problems. By introducing more educational competition, the 12
legislature has the opportunity to rebuild trust, confront these 13
urgent challenges, and provide every child with a safe and world-14
class education, worthwhile of the investment from Washington 15
taxpayers. 16
(5) The legislature understands many interests served by the 17
current system of public education in our state will oppose families 18
having the freedom to find an adequate education for their children. 19
Longstanding jurisprudence has said that education is a foundational 20
purpose of government, therefore education savings accounts are in no 21
way a gift of public funds. It is in the best interest of Washington 22
state to educate its citizenry and empower parents to do what is best 23
for their child, regardless of their zip code. 24
(6) The legislature also acknowledges that some will object to 25
some of the choices families may make. Namely that some families will 26
choose for a myriad of reasons to send their student to a religious 27
private school. However, the United States supreme court has made it 28
clear through two recent cases, Carson v. Makin and Espinoza v. 29
Montana Department of Revenue , that if the government creates a 30
program, it cannot then discriminate against religious institutions' 31
participation. This is not a new concept for Washington state. This 32
state has a history of providing education funding support in private 33
religious institutions, specifically for postsecondary education 34
programs. 35
(7) The legislature anticipates that some advocates for public 36
schools and public school teachers will argue this scholarship will 37
defund or damage public schools. However, in no state where education 38
savings accounts have been implemented has this been the case. To the 39
contrary, research shows that test results and outcomes for students 40
p. 3 HB 1140
in public schools have universally improved in states that have 1
implemented education savings accounts. The competition introduced 2
into these state systems have actually alleviated the harms that a 3
public school monopoly creates. 4
(8) The legislature finds that the increased funding and current 5
leadership of the public school system has not led to any positive 6
measurable outcomes for students. The current approach of increasing 7
funding to teachers and administration in hopes of it trickling down 8
to better educational outcomes for students has failed. It is time to 9
empower parents to do what is best for their children by joining the 10
majority of states in expanding school choice. Measures like this 11
enjoy overwhelming, bipartisan support wherever they are implemented. 12
Washington now has the opportunity to not just follow suit, but to 13
take the lead in improving their model of success. This is the civil 14
rights issue of our time, and it is time for Washington to follow the 15
majority of other states in confronting it head on.16
(9) Therefore, the legislature intends to allow the money 17
invested in students to follow the student by establishing the 18
empowerED scholarship program. The program would fund education 19
savings accounts for students with priority given to those students 20
who are being failed by the current model, specifically students 21
eligible for special education services, low-income students, and 22
students in failing schools. Parents who apply for the scholarship on 23
behalf of their students are legally required to only use the funds 24
for education-related expenses. The legislature intends to make the 25
funds accessible with the use of a debit card managed by the state 26
with oversight capability so that the system can be audited. The 27
accounts will be funded on a progressive scale, with the lowest 28
income students, qualifying for a greater award. Students eligible 29
for special education services will qualify for additional support. 30
The fund will receive revenue from the legislature, as well as a B&O 31
tax credit, so businesses can provide direct support to students. 32
This measure will empower parents to do what is best for their 33
student regardless of income level or zip code, while also meeting 34
the state's moral and constitutional obligation to put all students 35
first, not just the wealthy ones. 36
NEW SECTION. Sec. 2. The definitions in this section apply 37
throughout this chapter unless the context clearly requires 38
otherwise.39
p. 4 HB 1140
(1) "Agreement" means a written agreement between the council and 1
the parent of an eligible student that establishes the obligations of 2
the parent and the council. 3
(2) "Council" means the student achievement council created under 4
chapter 28B.77 RCW. 5
(3) "Eligible student" means a person residing in Washington who 6
is at least five years of age and less than 21 years of age, unless 7
the person is ineligible to attend a public school in the state.8
(4) "EmpowerED scholarship program" means the Washington 9
education savings account program established under this chapter.10
(5) "Home-based instruction" has the meaning as described in RCW 11
28A.225.010. 12
(6) "Participating student" means an eligible student whose 13
parent has submitted a signed agreement to the council.14
(7) "Participating student's account" means a Washington 15
education savings account accessible by the parent of a participating 16
student. 17
(8) "Private school" means a school approved under chapter 18
28A.195 RCW. 19
(9) "Public school" has the same meaning as in RCW 28A.150.010.20
(10) "Qualified expenses" means those enumerated in section 3 of 21
this act. 22
(11) "Scholarship" means the amount of money deposited by the 23
council into a participating student's account. 24
(12) "Student with a disability" means an eligible student who 25
has been evaluated and determined to need special education and 26
related services under the federal individuals with disabilities 27
education act, Title 20 U.S.C. Sec. 1400 et seq. 28
NEW SECTION. Sec. 3. Qualified expenses means expenses related 29
to the education of a participating student for which money in a 30
participating student's account may be used, for example:31
(1) Tuition, fees, or both at a private school;32
(2) Textbooks required by a private school; 33
(3) Tutoring and other services with a direct nexus to academics;34
(4) Curricula and other materials necessary to provide home-based 35
instruction; 36
(5) Tuition, fees, or both for a private online learning program;37
p. 5 HB 1140
(6) Fees for nationally standardized norm-referenced achievement 1
tests, advanced placement examinations, and any examinations related 2
to college or university admission; 3
(7) Uniforms required to attend a private school;4
(8) Costs for annual standardized testing or the academic 5
progress assessment required under RCW 28A.200.010 for participating 6
students receiving home-based instruction; 7
(9) Educational services and related therapies, services, and 8
supports, including assistive technology devices and services;9
(10) Expenses associated with participating in classes or 10
extracurricular activities, including athletics, at a public school;11
(11) Postsecondary education and workforce program costs;12
(12) Computer hardware and technological devices primarily used 13
for an educational purpose, which may include calculators, personal 14
computers, laptops, tablet devices, microscopes, telescopes, and 15
printers. The following technological devices are not qualified 16
expenses: Entertainment and other primarily noneducational devices, 17
for example, televisions, telephones, video game consoles and 18
accessories, and home theater and audio equipment;19
(13) Expenses related to transporting a participating student to 20
and from educational activities and services, and related therapies 21
and services; and 22
(14) Consumer goods not otherwise listed in this subsection, 23
whether consumable or nonconsumable, primarily used for an 24
educational purpose. 25
NEW SECTION. Sec. 4. (1) The empowerED scholarship program is 26
established to assist parents with the qualifying educational 27
expenses of their elementary and secondary students.28
(2) The council shall administer the empowerED scholarship 29
program as required by this chapter. 30
(3)(a) On an annual basis, the council shall calculate 31
scholarship amounts as described in (b) and (c) of this subsection 32
(3) and deposit scholarships in participating students' accounts 33
until funds in the empowerED scholarship program account created in 34
section 10 of this act are exhausted or nearly exhausted.35
(b)(i) The maximum scholarship amount for participating students 36
without disabilities is $12,700. 37
p. 6 HB 1140
(ii) The maximum scholarship amount for participating students 1
with disabilities is the sum of (b)(ii)(A) and (B) of this subsection 2
(3): 3
(A) $10,700 multiplied by the special education cost multiplier 4
rate identified under RCW 28A.150.390(2)(b)(i)(A)(I); and5
(B) $12,700. 6
(iii) Beginning with fiscal year 2026, the maximum scholarship 7
amounts identified in (b)(i) and (ii) of this subsection (3) must be 8
adjusted annually for inflation as measured by the consumer price 9
index. 10
(c) Participating students with family incomes between zero and 11
55 percent of the state median family income, adjusted for family 12
size, must receive the maximum scholarship amount identified in (b) 13
of this subsection (3) appropriate to their disability status. 14
Scholarship amounts for participating students with family incomes 15
between 56 and 100 percent of the state median family income, 16
adjusted for family size, must be prorated at the following 17
percentages of the maximum scholarship amount identified in (b) of 18
this subsection (3): 19
(i) 70 percent of the maximum scholarship amount for students 20
with family incomes between 56 and 60 percent of the state median 21
family income, adjusted for family size; 22
(ii) 60 percent of the maximum scholarship amount for students 23
with family incomes between 61 and 65 percent of the state median 24
family income, adjusted for family size; 25
(iii) 50 percent of the maximum scholarship amount for students 26
with family incomes between 66 and 70 percent of the state median 27
family income, adjusted for family size; 28
(iv) 24.5 percent of the maximum scholarship amount for students 29
with family incomes between 71 and 75 percent of the state median 30
family income, adjusted for family size; and 31
(v) 10 percent of the maximum scholarship amount for students 32
with family incomes between 76 and 100 percent of the state median 33
family income, adjusted for family size. 34
(4) The council shall prioritize scholarships to eligible 35
students in the following order: 36
(a) First, to eligible students who participated in the empowerED 37
scholarship program during the prior school year; 38
(b) Second, to eligible students who are the siblings of 39
participating students, where "sibling" means both an eligible 40
p. 7 HB 1140
student who shares at least one biological or legal parent with 1
another eligible student and an eligible student who is the subject 2
of a dependency proceeding as defined in RCW 28A.150.510 and who 3
resides in the same household as another eligible student; and4
(c) Third, to eligible students who either: 5
(i) Have a disability; 6
(ii) Are in households at or below 300 percent of the federal 7
poverty level; or 8
(iii) Are enrolled in public schools identified as challenged 9
schools in need of improvement under RCW 28A.657.020.10
(5) The council shall adopt rules under chapter 34.05 RCW for the 11
administration of the empowerED scholarship program.12
NEW SECTION. Sec. 5. (1) To apply for the empowerED scholarship 13
program, the parent of an eligible student must submit an application 14
to the council in the manner and by the deadline set by the council.15
(2) For an eligible student to participate in the empowerED 16
scholarship program, the parent of the participating student must 17
enter into a written agreement with the council that obligates the 18
parent to: 19
(a) Withdraw from or not enroll in the public school the 20
participating student attends or is eligible to attend, and release 21
the public school and, if applicable, the school district, from all 22
obligations to provide an education, and educational and related 23
services, to the participating student; 24
(b) Enroll the participating student in a private school or 25
adhere to the home-based instruction requirements of RCW 28A.225.010 26
and 28A.200.010; 27
(c) Use the scholarship and any interest that may accrue in the 28
participating student's account only for qualified expenses of the 29
participating student as provided in section 3 of this act; and30
(d) Maintain documentation of all expenses paid using the 31
participating student's account and provide the documentation of the 32
expenses to the council upon request. 33
(3)(a) The parent of a participating student may terminate the 34
agreement entered into under this section by notifying the council in 35
the manner specified by the council. 36
(b) An agreement entered into under this section terminates 37
automatically if the participating student is no longer an eligible 38
student. 39
p. 8 HB 1140
(c) Any money remaining in a participating student's account that 1
is terminated under this subsection (3) reverts to the council to be 2
redeposited to the empowerED scholarship program account created in 3
section 10 of this act. 4
NEW SECTION. Sec. 6. (1) Parents and private schools that 5
accept scholarships from the empowerED scholarship program are not 6
agents of the state or federal government and must be given maximum 7
freedom to provide for the educational needs of participating 8
students without governmental control.9
(2) Private schools must not be required to alter their creed, 10
practices, admissions policies, or curricula in order to admit 11
participating students whose parents pay tuition or fees using 12
empowerED scholarships. 13
(3) Nothing in this chapter may be construed to expand the 14
regulatory authority of the state, the council, the state board of 15
education, the office of the superintendent of public instruction, or 16
any of their officers, to impose any additional regulations on 17
private schools or parents providing home-based instruction beyond 18
those necessary to enforce the requirements of the empowerED 19
scholarship program. 20
NEW SECTION. Sec. 7. (1) The council shall establish a process 21
to receive comments from parents about the empowerED scholarship 22
program, including the management of the participating students' 23
accounts.24
(2) The council shall establish a process to receive student 25
assessment or other outcome data submitted by the parents of 26
participating students. Parents are not required to submit student 27
assessment or other outcome data. 28
(3) The council shall annually notify the parents of 29
participating students of the processes established under this 30
section. 31
NEW SECTION. Sec. 8. (1) Annually by November 1st, and in 32
accordance with RCW 43.01.036, the council shall submit to the 33
appropriate committees of the legislature a report on the empowerED 34
scholarship program.35
(2) The report must include the following information from the 36
prior school year: 37
p. 9 HB 1140
(a) The number of participating students and the number of 1
applicants, disaggregated by grade level, gender, race, and ethnicity 2
as described in RCW 28A.300.042(1), resident school district or other 3
geographical region, family income level, disability status, if any, 4
and other relevant characteristics; 5
(b) The amount of money deposited in the participating students' 6
accounts at the beginning of the school year and the amount of money 7
remaining in the accounts at the end of the school year;8
(c) A summary of student assessment or other outcome data 9
submitted by the parents of participating students though the process 10
established under section 7 of this act, for example the number of 11
assessments submitted, the types of assessments submitted, and the 12
percentage of participating students who met standard on the 13
submitted assessments; 14
(d) A summary of any comments from parents about the program 15
received through the process established under section 7 of this act, 16
and a summary of how the council is responding to the comments;17
(e) Information on any entity contracted to manage the 18
participating students' accounts as permitted under section 9 of this 19
act; and 20
(f) Information on whether the program or any of its accounts, 21
including participating students' accounts and the empowerED 22
scholarship program account, have been audited and the results of the 23
audit. 24
NEW SECTION. Sec. 9. (1) The council may contract for the 25
management of the participating students' accounts.26
(2) The manager of the accounts must comply with generally 27
accepted accounting principles and may charge reasonable fees for the 28
management of participating students' accounts. 29
(3) The manager of the participating students' accounts may use 30
the money in the accounts to earn interest. 31
(4) The parent of a participating student must be able to access 32
the money in the participating student's account using a debit card 33
or other electronic means. 34
(5) The empowerED scholarship program and all accounts, including 35
participating students' accounts and the empowerED scholarship 36
program account, are subject to audit by the state auditor's office 37
and by an independent public accounting firm retained by the council 38
for this purpose. 39
p. 10 HB 1140
NEW SECTION. Sec. 10. The empowerED scholarship program account 1
is created in the custody of the state treasurer. All receipts from 2
transfers made by the legislature, contributions received by 3
taxpayers utilizing the education choice tax credit created in 4
section 13 of this act, moneys received from gifts, grants, and 5
bequests, and interest earned on the fund must be deposited in the 6
account. Expenditures from the account may be used only for the 7
purposes within this chapter. Only the executive director of the 8
council or the director's designee may authorize expenditures from 9
the account. Moneys within the account may not be appropriated into 10
any other fund or account. The account is subject to the allotment 11
procedures under chapter 43.88 RCW, but an appropriation is not 12
required for expenditures.13
Sec. 11. RCW 43.79A.040 and 2024 c 327 s 16 and 2024 c 168 s 10 14
are each reenacted and amended to read as follows:15
(1) Money in the treasurer's trust fund may be deposited, 16
invested, and reinvested by the state treasurer in accordance with 17
RCW 43.84.080 in the same manner and to the same extent as if the 18
money were in the state treasury, and may be commingled with moneys 19
in the state treasury for cash management and cash balance purposes.20
(2) All income received from investment of the treasurer's trust 21
fund must be set aside in an account in the treasury trust fund to be 22
known as the investment income account. 23
(3) The investment income account may be utilized for the payment 24
of purchased banking services on behalf of treasurer's trust funds 25
including, but not limited to, depository, safekeeping, and 26
disbursement functions for the state treasurer or affected state 27
agencies. The investment income account is subject in all respects to 28
chapter 43.88 RCW, but no appropriation is required for payments to 29
financial institutions. Payments must occur prior to distribution of 30
earnings set forth in subsection (4) of this section.31
(4)(a) Monthly, the state treasurer must distribute the earnings 32
credited to the investment income account to the state general fund 33
except under (b), (c), and (d) of this subsection.34
(b) The following accounts and funds must receive their 35
proportionate share of earnings based upon each account's or fund's 36
average daily balance for the period: The 24/7 sobriety account, the 37
Washington promise scholarship account, the Gina Grant Bull memorial 38
legislative page scholarship account, the Rosa Franklin legislative 39
p. 11 HB 1140
internship program scholarship account, the Washington advanced 1
college tuition payment program account, the Washington college 2
savings program account, the empowerED scholarship program account, 3
the accessible communities account, the Washington achieving a better 4
life experience program account, the Washington career and college 5
pathways innovation challenge program account, the community and 6
technical college innovation account, the agricultural local fund, 7
the American Indian scholarship endowment fund, the behavioral health 8
loan repayment and scholarship program account, the Billy Frank Jr. 9
national statuary hall collection fund, the foster care scholarship 10
endowment fund, the foster care endowed scholarship trust fund, the 11
contract harvesting revolving account, the Washington state combined 12
fund drive account, the commemorative works account, the county 911 13
excise tax account, the county road administration board emergency 14
loan account, the toll collection account, the developmental 15
disabilities endowment trust fund, the energy account, the energy 16
facility site evaluation council account, the fair fund, the family 17
and medical leave insurance account, the Fern Lodge maintenance 18
account, the fish and wildlife federal lands revolving account, the 19
natural resources federal lands revolving account, the food animal 20
veterinarian conditional scholarship account, the forest health 21
revolving account, the fruit and vegetable inspection account, the 22
educator conditional scholarship account, the game farm alternative 23
account, the GET ready for math and science scholarship account, the 24
Washington global health technologies and product development 25
account, the grain inspection revolving fund, the Washington history 26
day account, the industrial insurance rainy day fund, the juvenile 27
accountability incentive account, the law enforcement officers' and 28
firefighters' plan 2 expense fund, the local tourism promotion 29
account, the low-income home rehabilitation account, the medication 30
for people living with HIV rebate revenue account, the homeowner 31
recovery account, the multiagency permitting team account, the 32
northeast Washington wolf-livestock management account, the pollution 33
liability insurance program trust account, the produce railcar pool 34
account, the public use general aviation airport loan revolving 35
account, the regional transportation investment district account, the 36
rural rehabilitation account, the Washington sexual assault kit 37
account, the stadium and exhibition center account, the youth 38
athletic facility account, the self-insurance revolving fund, the 39
children's trust fund, the Washington horse racing commission 40
p. 12 HB 1140
Washington bred owners' bonus fund and breeder awards account, the 1
Washington horse racing commission class C purse fund account, the 2
individual development account program account, the Washington horse 3
racing commission operating account, the life sciences discovery 4
fund, the Washington state library-archives building account, the 5
reduced cigarette ignition propensity account, the center for deaf 6
and hard of hearing youth account, the school for the blind account, 7
the Millersylvania park trust fund, the public employees' and 8
retirees' insurance reserve fund, the school employees' benefits 9
board insurance reserve fund, the public employees' and retirees' 10
insurance account, the school employees' insurance account, the long-11
term services and supports trust account, the radiation perpetual 12
maintenance fund, the Indian health improvement reinvestment account, 13
the department of licensing tuition recovery trust fund, the student 14
achievement council tuition recovery trust fund, the tuition recovery 15
trust fund, the industrial insurance premium refund account, the 16
mobile home park relocation fund, the natural resources deposit fund, 17
the Washington state health insurance pool account, the federal 18
forest revolving account, the Washington saves administrative 19
treasury trust account, and the library operations account.20
(c) The following accounts and funds must receive 80 percent of 21
their proportionate share of earnings based upon each account's or 22
fund's average daily balance for the period: The advance right-of-way 23
revolving fund, the advanced environmental mitigation revolving 24
account, the federal narcotics asset forfeitures account, the high 25
occupancy vehicle account, the local rail service assistance account, 26
and the miscellaneous transportation programs account.27
(d) Any state agency that has independent authority over accounts 28
or funds not statutorily required to be held in the custody of the 29
state treasurer that deposits funds into a fund or account in the 30
custody of the state treasurer pursuant to an agreement with the 31
office of the state treasurer shall receive its proportionate share 32
of earnings based upon each account's or fund's average daily balance 33
for the period. 34
(5) In conformance with Article II, section 37 of the state 35
Constitution, no trust accounts or funds shall be allocated earnings 36
without the specific affirmative directive of this section.37
Sec. 12. RCW 43.79A.040 and 2024 c 327 s 17 and 2024 c 168 s 11 38
are each reenacted and amended to read as follows:39
p. 13 HB 1140
(1) Money in the treasurer's trust fund may be deposited, 1
invested, and reinvested by the state treasurer in accordance with 2
RCW 43.84.080 in the same manner and to the same extent as if the 3
money were in the state treasury, and may be commingled with moneys 4
in the state treasury for cash management and cash balance purposes.5
(2) All income received from investment of the treasurer's trust 6
fund must be set aside in an account in the treasury trust fund to be 7
known as the investment income account. 8
(3) The investment income account may be utilized for the payment 9
of purchased banking services on behalf of treasurer's trust funds 10
including, but not limited to, depository, safekeeping, and 11
disbursement functions for the state treasurer or affected state 12
agencies. The investment income account is subject in all respects to 13
chapter 43.88 RCW, but no appropriation is required for payments to 14
financial institutions. Payments must occur prior to distribution of 15
earnings set forth in subsection (4) of this section.16
(4)(a) Monthly, the state treasurer must distribute the earnings 17
credited to the investment income account to the state general fund 18
except under (b), (c), and (d) of this subsection.19
(b) The following accounts and funds must receive their 20
proportionate share of earnings based upon each account's or fund's 21
average daily balance for the period: The 24/7 sobriety account, the 22
Washington promise scholarship account, the Gina Grant Bull memorial 23
legislative page scholarship account, the Rosa Franklin legislative 24
internship program scholarship account, the Washington advanced 25
college tuition payment program account, the Washington college 26
savings program account, the empowerED scholarship program account, 27
the accessible communities account, the Washington achieving a better 28
life experience program account, the Washington career and college 29
pathways innovation challenge program account, the community and 30
technical college innovation account, the agricultural local fund, 31
the American Indian scholarship endowment fund, the behavioral health 32
loan repayment and scholarship program account, the Billy Frank Jr. 33
national statuary hall collection fund, the foster care scholarship 34
endowment fund, the foster care endowed scholarship trust fund, the 35
contract harvesting revolving account, the Washington state combined 36
fund drive account, the commemorative works account, the county 911 37
excise tax account, the county road administration board emergency 38
loan account, the toll collection account, the developmental 39
disabilities endowment trust fund, the energy account, the energy 40
p. 14 HB 1140
facility site evaluation council account, the fair fund, the family 1
and medical leave insurance account, the Fern Lodge maintenance 2
account, the fish and wildlife federal lands revolving account, the 3
natural resources federal lands revolving account, the food animal 4
veterinarian conditional scholarship account, the forest health 5
revolving account, the fruit and vegetable inspection account, the 6
educator conditional scholarship account, the game farm alternative 7
account, the GET ready for math and science scholarship account, the 8
Washington global health technologies and product development 9
account, the grain inspection revolving fund, the Washington history 10
day account, the industrial insurance rainy day fund, the juvenile 11
accountability incentive account, the law enforcement officers' and 12
firefighters' plan 2 expense fund, the local tourism promotion 13
account, the low-income home rehabilitation account, the medication 14
for people living with HIV rebate revenue account, the homeowner 15
recovery account, the multiagency permitting team account, the 16
northeast Washington wolf-livestock management account, the produce 17
railcar pool account, the public use general aviation airport loan 18
revolving account, the regional transportation investment district 19
account, the rural rehabilitation account, the Washington sexual 20
assault kit account, the stadium and exhibition center account, the 21
youth athletic facility account, the self-insurance revolving fund, 22
the children's trust fund, the Washington horse racing commission 23
Washington bred owners' bonus fund and breeder awards account, the 24
Washington horse racing commission class C purse fund account, the 25
individual development account program account, the Washington horse 26
racing commission operating account, the life sciences discovery 27
fund, the Washington state library-archives building account, the 28
reduced cigarette ignition propensity account, the center for deaf 29
and hard of hearing youth account, the school for the blind account, 30
the Millersylvania park trust fund, the public employees' and 31
retirees' insurance reserve fund, the school employees' benefits 32
board insurance reserve fund, the public employees' and retirees' 33
insurance account, the school employees' insurance account, the long-34
term services and supports trust account, the radiation perpetual 35
maintenance fund, the Indian health improvement reinvestment account, 36
the department of licensing tuition recovery trust fund, the student 37
achievement council tuition recovery trust fund, the tuition recovery 38
trust fund, the industrial insurance premium refund account, the 39
mobile home park relocation fund, the natural resources deposit fund, 40
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the Washington state health insurance pool account, the federal 1
forest revolving account, the Washington saves administrative 2
treasury trust account, and the library operations account.3
(c) The following accounts and funds must receive 80 percent of 4
their proportionate share of earnings based upon each account's or 5
fund's average daily balance for the period: The advance right-of-way 6
revolving fund, the advanced environmental mitigation revolving 7
account, the federal narcotics asset forfeitures account, the high 8
occupancy vehicle account, the local rail service assistance account, 9
and the miscellaneous transportation programs account.10
(d) Any state agency that has independent authority over accounts 11
or funds not statutorily required to be held in the custody of the 12
state treasurer that deposits funds into a fund or account in the 13
custody of the state treasurer pursuant to an agreement with the 14
office of the state treasurer shall receive its proportionate share 15
of earnings based upon each account's or fund's average daily balance 16
for the period. 17
(5) In conformance with Article II, section 37 of the state 18
Constitution, no trust accounts or funds shall be allocated earnings 19
without the specific affirmative directive of this section.20
NEW SECTION. Sec. 13. Beginning January 1, 2026, a credit equal 21
to 100 percent of contributions to the empowerED scholarship program 22
or the empowerED scholarship program account is allowed against taxes 23
imposed by chapters 82.04 RCW and 82.16 RCW.24
NEW SECTION. Sec. 14. (1) Applications for tax credits under 25
this chapter must be submitted to the department before making a 26
contribution to the empowerED scholarship program or to the empowerED 27
scholarship program account. The application must be made to the 28
department in a form and manner prescribed by the department. The 29
application must contain information regarding the proposed amount of 30
contribution to the empowerED scholarship program or the empowerED 31
scholarship program account and other information required by the 32
department to determine eligibility under this chapter. The 33
department must rule on the application within 30 days. Applications 34
must be approved on a first-come basis.35
(2) The department may not accept any applications before the 36
second Monday in January of each calendar year. 37
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(3) A taxpayer approved for a credit as provided in this act, 1
must send the total approved contribution by November 15th of the 2
calendar year in which the application is approved. If November 15th 3
falls upon a Saturday, Sunday, or legal holiday, the payment of the 4
contribution will be considered timely if sent on the next business 5
day. 6
(4)(a) A taxpayer that does not make an approved contribution as 7
required in subsection (1) of this section forfeits all credits for 8
the approved contribution. 9
(b) The department must make credits forfeited as provided in (a) 10
of this subsection available to new applicants. 11
(c) A taxpayer that was approved for credit as provided in this 12
chapter after November 15th must make the total approved contribution 13
by the end of the calendar year in which the contribution was 14
approved. 15
(5) The credit claimed may not exceed the tax that would 16
otherwise be due under chapters 82.04 and 82.16 RCW. Refunds may not 17
be granted in the place of credits. Any amount of credit earned under 18
this section not claimed by the taxpayer in one calendar year may be 19
carried forward for no more than two calendar years immediately 20
following the year that the credit was earned. 21
NEW SECTION. Sec. 15. (1) The total credits allowed under this 22
chapter for contributions made to the empowerED scholarship program 23
or the empowerED scholarship program account may not exceed 24
$300,000,000 in a calendar year.25
(2) The department must keep a running total of all credits 26
approved under this chapter for each calendar year.27
(3) If approved contributions in a calendar year exceed 90 28
percent of total allowable credits, the total allowable credit amount 29
must be increased by 10 percent beginning with the calendar year 30
immediately following the calendar year in which the contributions 31
exceed 90 percent. 32
NEW SECTION. Sec. 16. No taxpayer may claim a credit against 33
taxes due under both chapter 82.04 and 82.16 RCW for the same 34
contribution.35
NEW SECTION. Sec. 17. For purposes of this chapter, the 36
following definitions apply:37
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(1) "Applicant" means a person applying for a tax credit under 1
this chapter. 2
(2) "Approved contribution" means cash contributions to the 3
empowerED scholarship program or the empowerED scholarship program 4
account which have been approved pursuant to the department's 5
application requirements. 6
(3) "EmpowerED scholarship program" means the Washington 7
educational savings account program established in section 4 of this 8
act. 9
(4) "EmpowerED scholarship program account" means the empowerED 10
scholarship program account created under section 10 of this act.11
NEW SECTION. Sec. 18. The superintendent of public instruction 12
must provide information to the department to administer this 13
chapter.14
NEW SECTION. Sec. 19. Chapter 82.32 RCW applies to the 15
administration of this chapter.16
NEW SECTION. Sec. 20. A new section is added to chapter 28B.77 17
RCW to read as follows: 18
The council shall administer the empowerED scholarship program 19
established under section 4 of this act. 20
Sec. 21. RCW 28A.225.350 and 2022 c 78 s 4 are each amended to 21
read as follows: 22
(1)(a) The protocols required by RCW 74.13.560 for making best 23
interest determinations for students who are the subject of a 24
dependency proceeding pursuant to chapter 13.34 RCW must comply with 25
the provisions of this section. 26
(b) The requirements of this section, and the development 27
protocols described in RCW 74.13.560 for making best interest 28
determinations for students who are the subject of a dependency 29
proceeding pursuant to chapter 13.34 RCW, may also be applied to 30
students who are the subject of a federally recognized tribal court 31
shelter care or dependency order that is the equivalent of a shelter 32
care or dependency order issued pursuant to chapter 13.34 RCW, and 33
students who are eligible for benefits under the federal foster care 34
system as defined in RCW 28B.117.020. 35
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(2)(a) Best interest determinations should be made as quickly as 1
possible in order to prevent educational discontinuity for the 2
student. 3
(b) When making best interest determinations, every effort should 4
be made to gather meaningful input from relevant and appropriate 5
persons on their perspectives regarding which school the student 6
should attend while the subject of a dependency proceeding, 7
consistent with the student's case plan. Relevant and appropriate 8
persons include: 9
(i) Representatives of the department of children, youth, and 10
families for students who are the subject of a dependency proceeding 11
pursuant to chapter 13.34 RCW, or representatives of other applicable 12
child welfare agencies; 13
(ii) Representatives of the school of origin, such as a teacher, 14
counselor, coach, or other meaningful person in the student's life;15
(iii) Biological parents; 16
(iv) Foster parents; 17
(v) Educational liaisons identified under RCW 13.34.045;18
(vi) The student's relatives; and 19
(vii) Depending on the student's age, the student.20
(3) In accordance with RCW 74.13.550, whenever practical and in 21
their best interest, students who are the subject of a dependency 22
proceeding must remain enrolled in their school of origin.23
(4) Student-centered factors must be used to determine what is in 24
a student's best interest. In order to make a well-informed best 25
interest determination, a variety of student-centered factors should 26
be considered, including: 27
(a) How long is the student's current care placement expected to 28
last? 29
(b) What is the student's permanency plan and how does it relate 30
to school stability? 31
(c) How many schools has the student attended in the current 32
year? 33
(d) How many schools has the student attended over the past few 34
years? 35
(e) Considering the impacts of past transfers, how may 36
transferring to a new school impact the student academically, 37
emotionally, physically, and socially? 38
(f) What are the immediate and long-term educational plans of, 39
and for, the student? 40
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(g) How strong is the student academically? 1
(h) If the student has special needs, what impact will 2
transferring to a new school have on the student's progress and 3
services? 4
(i) To what extent are the programs and activities at the 5
potential new school comparable to, or more appropriate than, those 6
at the school of origin? 7
(j) Does one school have programs and activities that address the 8
unique needs or interests of the student that the other school does 9
not have? 10
(k) Which school does the student prefer? 11
(l) How deep are the student's ties to the student's school of 12
origin? 13
(m) Would the timing of the school transfer coincide with a 14
logical juncture, such as after testing, after an event that is 15
significant to the student, or at the end of the school year?16
(n) How would changing schools affect the student's ability to 17
earn full academic credit, participate in sports or other 18
extracurricular activities, proceed to the next grade, or graduate on 19
time? 20
(o) How would the commute to the school under consideration 21
impact the student, in terms of distance, mode of transportation, and 22
travel time? 23
(p) How anxious is the student about having been removed from the 24
home or about any upcoming moves? 25
(q) What school does the student's sibling attend?26
(r) Are there safety issues to consider? 27
(s) Would the availability of the empowerED scholarship program 28
established in section 4 of this act make private school or another 29
alternative to traditional public school the best option for the 30
student?31
(5) The student must remain in the student's school of origin 32
while a best interest determination is made and while disputes are 33
resolved in order to minimize disruption and reduce the number of 34
school transfers. 35
(6) School districts are encouraged to use any:36
(a) Best interest determination guide developed by the office of 37
the superintendent of public instruction during the discussion about 38
the advantages and disadvantages of keeping the student in the school 39
of origin or transferring the student to a new school; and40
p. 20 HB 1140
(b) Dispute resolution process developed by the office of the 1
superintendent of public instruction when there is a disagreement 2
about school placement, a best interest determination, or a dispute 3
between agencies. 4
(7) The special education services of a student must not be 5
interrupted by a transfer to a new school. 6
(8)(a) If the student's care placement changes to an area served 7
by another school district, and it is determined to be in the best 8
interest of the student to remain in the school of origin, the school 9
district of origin and the school district in which the student is 10
living shall agree upon a method to apportion the responsibility and 11
costs for providing the student with transportation to and from the 12
school of origin. If the school districts are unable to agree upon an 13
apportionment method, the responsibility and costs for transportation 14
shall be shared equally between the districts. 15
(b) In accordance with this subsection, the department of 16
children, youth, and families will reimburse school districts for 17
half of all excess transportation costs for students under the 18
placement and care authority of the department of children, youth, 19
and families. 20
(9) For the purposes of this section, "students who are the 21
subject of a dependency proceeding" has the same meaning as in RCW 22
28A.150.510, and "school of origin" means the school in which a child 23
is enrolled at the time of placement in foster care. If a child's 24
foster care placement changes, the school of origin must be 25
considered the school in which the child is enrolled at the time of 26
the placement change. 27
NEW SECTION. Sec. 22. The provisions of RCW 82.32.805 and 28
82.32.808 do not apply to this act.29
NEW SECTION. Sec. 23. Sections 2 through 10 of this act 30
constitute a new chapter in Title 28A RCW.31
NEW SECTION. Sec. 24. Sections 13 through 19 of this act 32
constitute a new chapter in Title 82 RCW.33
NEW SECTION. Sec. 25. Section 11 of this act expires July 1, 34
2030.35
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NEW SECTION. Sec. 26. Section 12 of this act takes effect July 1
1, 2030.2
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