Senator Ott proposes the following amendment (SMIN-62.MW0004S):

Amend the bill, as and if amended, SECTION 2, by striking Section 59-8-115(I), (J), and (K) and inserting:

 (J)(I) The State Board of Education shall may promulgate regulations for the administration of the program as may be applicable.
 (K) The department may contract with qualified organizations to administer the program application process or specific functions, maintenance, and monitoring of the program application process as required above.
 (K) (J) Students must be considered enrolled in the program until the parent notifies the department of a decision to terminate participation or the department determines that the student is no longer eligible.

Amend the bill further, SECTION 3, by striking Section 59-8-120(H) and (I) and inserting:

 (H) The department may contract with qualified organizations to administer the program.
 (I) (H)The trust K-12 education lottery scholarship fund does not constitute a debt of the State or any political subdivision thereof, including school districts. The trust fund must be held and applies solely toward carrying out the purposes of this chapter.

Amend the bill further, SECTION 4, by striking Section 59-8-125(B), (C), (D), (E), (F), (G), (H), and (I) and inserting:

 (B) The General Assembly shall appropriate funds to the department for initial costs to create the program. Thereafter, theThe department shall deduct an amount from the ESTF K-12 education lottery scholarship fund to cover the costs of overseeing the accounts and administering the program up to a limit of the lesser of two percent or two million eight hundred fifty thousand dollars. Annually, on or before December thirty-first, the department shall notify the respective chairmen of the Senate Finance Committee and House of Representatives Ways and Means Committee regarding the amount deducted for administrative costs and an itemization of the costs incurred to administer the program for the previous school fiscal year.
 (C) The department may contract with qualified vendors to manage accounts and shall establish reasonable fees for private financial management firms participating in the program based upon market rates.
 (D) The department may contract with qualified organizations to administer the program or specific functions of the program.
 (E) (C) Payments made by the department must remain in force until a parent or scholarship student is proven to have participated in a prohibited activity specified in this chapter, a scholarship student returns to a public school in his resident public school district, or a scholarship student graduates from high school or attains twenty-two years of age, whichever occurs first. A scholarship student who enrolls in his resident public school district is considered to have returned to a public school for the purpose of determining the end of the term. Any money remaining in the student's account reverts back to the K-12 education lottery scholarship fund.
 (F) (D) The department may suspend or deactivate an account for substantial misuse or the scholarship student leaves the program for any reason, at which time any remaining funds must reverts to the ESTFK-12 education lottery scholarship fund.
 (G) (E)Unused funds must be rolled over to the following school year for a scholarship student who applies and continues to meet eligibility requirements to participate in the program.
 (H) (F) A scholarship terminates automatically if the student is no longer domiciled in this State, and any money remaining in the account reverts to the ESTFK-12 education lottery scholarship fund.
 (I) (G) Only one account may be established for a scholarship student.

Amend the bill further, SECTION 8, by striking Section 59-8-145(E) and (F) and inserting:

 (E) The department may conduct or contract for the auditing of accounts, and shall, at a minimum, conduct random audits of education service providers and scholarship accounts on an annual basis.
 (F) (E) The department may refer cases of substantial misuse of funds to law enforcement agencies for investigation.

Amend the bill further, SECTION 8, by striking Section 59-8-145(G) and inserting:

 (H)(G) (F)The department shall maintain a record of the number of applications received annually for the program, the number of students accepted into the program each fiscal year, and the number of students not accepted into the program each fiscal year with a corresponding explanation as to why the student was not accepted into the program. The department shall compile this information and provide a report on the previous fiscal year to the General Assembly by December thirty-first of each year.

Amend the bill further, SECTION 9, by striking Section 59-8-150(G) and inserting:

 (G) A person paid by, contracted with, employed by, or having a financial interest in an education service provider shall not be allowed to serve on the board of an organization contracting for services with the department as defined in Section 59-8-115(J), serve on the board of a vendor or private management firm contracted to manage accounts as defined in Section 59-8-125(C), on the board of any other provider of contracted-for services under Section 59-8-110(12) or under Section 59-8-120(H), or on the ESTF K-12 education lottery scholarship Review Panelreview panel. Any education service provider violating this subsection shall be barred from participating in the program for two years and shall return any funds received under the program to the ESTFK-12 education lottery scholarship fund.

Renumber sections to conform.

Amend title to conform.