Vote Smart's Synopsis:

Vote to pass a bill that establishes a pilot program for Education Savings Accounts using funding both from parents and the state of North Dakota.

Highlights:

• Expands the definition of “authorized education expenses” to include tuition for (Sec. 1):

• Career and technical education courses; 

• Dual-credit courses;

• Vocational and technical courses; 

• Nonpublic school education; 

• Certified online course; and 

• Approved programs.

• Expands the definition of “authorized education expenses” to include expenditures for (Sec. 1):

• School meals for students;

• Tutoring services;

• Mental health services;

• Special needs programs;

• Educational materials essential for meeting education standards;

• Medical appointments necessary for an educational benefit; 

• Standardized test preparation materials and programs; 

• Higher education entrance examinations; and

• Educational camps.

• Requires the Bank of North Dakota to establish and operate a pilot program for student education services accounts to provide funding for authorized education expenses (Sec. 1).

• Authorizes the Bank to contract with private service providers for the administration of student education accounts (Sec. 1).

• Requires parents to register for the program through the Bank of North Dakota (Sec. 1).

• Limits parental deposits into program accounts to a maximum of $2,000 per school year.

• Requires the Bank to deposit 50 percent of the amount of the parent’s deposit into the student education services account (Sec. 1).

• Requires funds remaining in the student education services account at the end of the fiscal year to be carried forward into the next fiscal year (Sec. 1).

• Prohibits the use of one child’s account for the child’s siblings (Sec. 1).

• Requires vendors to request payment from the administrator of the account between December and May, unless the amount is greater than $300 (Sec. 1).

• Authorizes parents to transfer account funds from the account to the college save program after high school graduation, if the child is enrolled in a higher education institution in the state (Sec. 1).

• Requires the services account to be closed and funds to be refunded to parents if the child does not pursue higher education or enrolls in an institution of higher education located in another state (Sec. 1).

• Appropriates $41.2 million from the state treasury to the Bank of North Dakota for the funding of the pilot program between July 1, 2025, and June 30, 2027 (Sec. 2).

• Limits the Bank to utilize a maximum of $1,200,000 to administer the program (Sec. 2).

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 3).

Full Bill Text