South Carolina General Assembly
126th Session, 2025-2026
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Indicates Matter Stricken
Indicates New Matter
S. 692
STATUS INFORMATION
General Bill
Sponsors: Senator Hembree
Document Path: SEDU-0033DB26.docx
Prefiled in the Senate on December 10, 2025
Currently residing in the Senate Committee on Education
HISTORY OF LEGISLATIVE ACTIONS
| Date | Body | Action Description with journal page number |
|---|---|---|
| 12/10/2025 | Senate | Prefiled |
| 12/10/2025 | Senate | Referred to Committee on Education |
View the latest legislative information at the website
VERSIONS OF THIS BILL
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 59-8-110, RELATING TO EDUCATION SCHOLARSHIP TRUST FUND DEFINITIONS, SO AS TO FURTHER DEFINE ELIGIBLE EXPENSES TO INCLUDE EDUCATION CLASSES DESIGNED TO SUPPLMENET A STUDENTS LEARNING PROGRAM PROVIDED BY AN ELIGIBLE SCHOOL AND TO FURTHER REMOVE ANY OTHER EDUCATION EXPENSES APPROVED BY THE DEPARTMENT TO ENABLE PERSONALIZED LEARNING; AND BY AMENDING SECTION 59-8-115, RELATING TO THE STANDARD APPLICATION PROCESS, SO AS TO REQUIRE A PARENT TO CERTIFY THAT AN ELIGIBLE STUDENT IS NOT PARTICIPATING IN A HOME BASED PERSONALIZED LEARNING PROGRAM NOT SPECIFICALLY APPROVED BY THE STATE BOARD OF EDUCATION AS PROVIDED IN SECTION 59-65-10 AND TO DELETE A PROVISION ALLOWING A PARENTS SIGNATURE TO SATISFY THE STATE'S COMPULSORY ATTENDANCE LAW.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-8-110 of the S.C. Code is amended to read:
Section 59-8-110. For purposes of this chapter:
(1) "Department" means the South Carolina Department of Education.
(2) "Education Scholarship Trust Fund," "ESTF," or "fund" means the individual account that is administered by the department to which funds are allocated to the parent of an eligible student to pay for qualifying expenses.
(3) "Eligible school" means a South Carolina public school or a nonprofit South Carolina independent school where a student is enrolled full time, that chooses to participate in the program. "Eligible school" does not include a school in which a member of the General Assembly or an immediate family member of a member of the General Assembly has any direct financial interest. For purposes of this section, "immediate family member" means as defined in Section 8-13-100(18). "Eligible school" does not include a charter school.
(4) "Eligible student" means a student who:
(a) is a resident of this State; and
(b)(i) has attained at least the age of five on or before September first of the school year in which scholarship funds are awarded;
(ii) in School Year 2025-2026, has a household income that does not exceed three hundred percent of the federal poverty guidelines; and
(iii) in School Year 2026-2027, and all subsequent years has a household income that does not exceed five hundred percent of the federal poverty guidelines.
"Eligible student" does not include students participating in the Educational Credit for Exceptional Needs Children's Fund program, as provided in Section 12-6-3790 or a student who is not subject to the compulsory attendance requirements of Section 59-65-10.
(5) "IDEA" means the Individuals with Disabilities Education Act found in 20 U.S.C. Section 1400, et seq.
(6) "Parent" means a resident of this State who is the natural or adoptive parent, legal guardian, custodian, or other person with legal authority to act on behalf of an eligible student.
(7) "Education service provider" means a person or organization approved by the department that receives payments from ESTF to provide educational goods and services to scholarship students.
(8) "Program" means the ESTF program created by this chapter.
(9) "Resident school" means the public school in which the student is zoned for attendance.
(10) "Scholarship" means education funding allocated from an account established pursuant to this chapter.
(11) "Scholarship student" means an eligible student who is participating in the Education Scholarship Trust Fund program.
(12) "Substantial misuse" means wilfully and knowingly receiving or spending any portion of a scholarship for any purpose other than a qualifying expense.
(13) "Trustee" means the individual or entity appointed by the State Superintendent of Education pursuant to Section 59-8-120(A)(2).
(14) "Qualifying expense" means:
(a) tuition and fees for attendance at an education service provider or eligible school;
(b) textbooks, curriculum, or other instructional materials including, but not limited to, any supplemental materials or associated online instruction required by either a curriculum or an education service provider;
(c) tutoring services approved by the department;
(d) computer hardware or other technological devices that are used primarily for a scholarship student's educational needs and approved by the department or a licensed physician;
(e) tuition and fees for an approved online education service provider or course;
(f) fees for approved:
(1) national norm-referenced examinations, advanced placement examinations, or similar assessments;
(2) industry certification exams; or
(3) examinations related to college or university admission;
(g) educational services for pupils with disabilities from a licensed or accredited practitioner or provider including, but not limited to, occupational, behavioral, physical, and speech-language therapies;
(h) approved contracted services from a public school district, or a public charter school including individual classes, after school tutoring services, transportation, or fees or costs associated with participation in extracurricular activities;
(i) contracted teaching services and education classes designed to supplement a students learning program provided by an eligible school and approved by the department;
(j) fees for transportation paid to a fee-for-service transportation provider for the scholarship student to travel to and from an eligible provider as defined in this section, but not to exceed three thousand dollars for each school year;
(k) fees for interdistrict public school transfers;
(l) cost of school uniforms which are required for attendance; or
(m) any consumables and items necessary to complete a curriculum or that are otherwise applicable to a course of study that has been approved by the department; or.
(n) any other educational expense approved by the department to enable personalized learning consistent with the intent of this act.
A qualifying expense does not mean a duplicate service already offered as part of a student's enrollment in school.
SECTION 2. Section 59-8-115 of the S.C. Code is amended to read:
Section 59-8-115. (A) The department shall create a standard application process and timeline for parents to establish the eligibility of their student for the Education Scholarship Trust Fund program. Beginning November first of every year, an early application window will be opened for current participants of this program who continue to meet the criteria of an eligible student, and their siblings. The department shall continue to accept applications for the ESTF program on a rolling basis until capacity is met and then shall maintain a waitlist to maximize program participation.
(B) Pursuant to the timeline established pursuant to subsection (A), the department shall ensure the following:
(1) applications must be processed in the order in which they are received, within each of the priority and general application windows;
(2) after the conclusion of the application window for current participants and their siblings, a priority application window for new program participants must be open for students who meet the following criteria:
(a) has a parent or guardian who is an active-duty member of the Armed Forces of the United States and will be living in South Carolina as a result of their duty station;
(b) has a household income that does not exceed three hundred percent of the federal poverty guidelines; or
(c) attended a public school in the previous academic year;
(3) once the priority application windows have closed, the general application window must open for any student who did not meet the early application window criteria; and
(4) within thirty days of submission of all required documentation, award letters must be enrolled and issued, and the student's online account must be created.
(C) Before awarding a scholarship, the department must obtain evidence of all other student eligibility criteria set forth in Section 59-8-110.
(D) The department shall approve an initial application for scholarship if:
(1) the parent submits an application for a scholarship in accordance with the application and procedures established by the department;
(2) the student on whose behalf the parent is applying is an eligible student;
(3) funds are available for the ESTF; and
(4) the parent annually attests to the following:
(a) to provide, at a minimum, a program of academic instruction for the eligible student in at least the subjects of English/language arts to include writing, mathematics, social studies, and science;
(b) to ensure the scholarship student takes assessments as referenced in Section 59-8-150 or provides assessments in a similar manner through other means if the scholarship student does not receive full-time instruction from an education service provider;
(c) to use the scholarship for qualifying expenses only for an approved provider to educate the scholarship student, subject to penalty;
(d) not to enroll their scholarship student in a public school as a full-time student in the resident school, as defined in this chapter;
(e) not to participate in a home instruction program under Section 59-65-40, 59-65-45, or 59-65-47, or other home-based personalized learning program not specifically approved by the State Board of Education as provided in Section 59-65-10;
(f) that includes parental acknowledgement that the nonpublic school education service providers are not subject to IDEA and are not required to offer the same services as the public school system to which their child is zoned for attendance. A parent does have the ability to request an evaluation and determination of possible eligibility from their resident school district; and
(g) to confirm that, if the parent's child is a student with disabilities, the parent has received notice from the department that participation in the ESTF program is a parental placement of the scholarship student under IDEA, along with an explanation of the rights that parentally placed students possess under IDEA and any applicable state laws and regulations, including the consultation process provided for in 20 U.S.C. Section 1412(a)(10) and the Individual Education Program requirements described in Section 1414(d) of IDEA.
(E) The department shall make available on its website in a conspicuous location information in conformity with 34 C.F.R. Sections 300.130 through 300.144, Assistance to States for the Education of Children with Disabilities, explaining to parents the rights of children with disabilities under IDEA both in public schools and as parentally placed students in private schools.
(F) Personal deposits into an ESTF account are prohibited.
(G) Funds received pursuant to this section do not constitute taxable income to the parent of the scholarship student or to the student.
(H) A parent's signed agreement under subsection (D)(4) satisfies the state's compulsory attendance law pursuant to Section 59-65-10.
(I)(H) The State Board of Education may promulgate regulations for the administration of the program as may be applicable.
(J)(I) 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.
SECTION 3. This act takes effect upon approval by the Governor.
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