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Bill Summary · HB 968

Overview

HB 968 (135th/136th General Assembly, Ohio) amends section 3310.70 of the Revised Code to revise the Afterschool Child Enrichment (ACE) Educational Savings Account Program and to authorize a state appropriation to fund the program. The measure establishes eligibility for ACE accounts, outlines how accounts are created and managed, specifies allowed and prohibited uses of funds, and sets reporting and administrative provisions. An appropriation of $5 million (fiscal years 2026-2027) is designated to fund the program, with funds transferred from the General Revenue Fund to the Afterschool Child Enrichment Fund.

Purpose and Intent

  • Create and operate the ACE Educational Savings Account Program to support afterschool and enrichment activities for eligible students.
  • Provide a mechanism for parents/guardians to allocate funds toward approved educational and enrichment expenditures for their children.

Key Provisions and Changes

  • Eligibility (Section 3310.70 A):

    • Eligible students are ages 6 through 18.
    • Eligibility criteria include at least one of the following: 1) Household adjusted gross income at or below 400% of the federal poverty guidelines. 2) The student’s resident district has a chronic absenteeism rate in the top 10% of districts. 3) The resident district operates certain school facilities or is a described district under specified code sections. 4) The student’s district is participating in a pilot ACE program under sections 3313.974 to 3313.979.
    • Income eligibility can be certified via affidavit, proof of eligibility in another program, or other department-determined methods.

  • ACE Educational Savings Accounts (Section 3310.70 B):

    • The ACE program is established; the Department of Education and Workforce (ODE) will adopt rules for account establishment in fiscal years 2022-2024 upon parental request.
    • Accounts are established on a first-come, first-served basis according to available funds.
    • Funds remaining from a year carry over to the next year for continued use.
    • Funds are generally not reclaimed by the department or vendor, except as allowed in divisional provisions.

  • Administration and Vendor (Section 3310.70 C):

    • ODE shall contract with a vendor to administer the ACE program; preference for vendors offering a free smartphone app with receipt scanning, feedback, and customer support.
    • The vendor may be paid up to 3% of the annual appropriation for the ACE program.
    • Vendor responsibilities:
    • Allow parents to directly pay for eligible expenses using funds in the ACE account.
    • Monitor account use and recoup unauthorized expenditures.
    • Provide the department with a list of purchases.

  • Use of Funds (Section 3310.70 E):

    • Eligible expenditures include a broad range of educational and enrichment activities:
    • Before-/after-school programs, day camps (academic, music, arts), tuition for learning centers, learning pods.
    • Curriculum and materials for home-educated students (where applicable).
    • Educational services, field trips, language classes, instrument lessons, tutoring, school clubs, sports, and 4-H/FFA activities.
    • Provisions prohibit spending on electronic devices (Section F).

  • Initial and Ongoing Funding (Divisions D):

    • Fiscal year 2022: $500 initial credit per eligible request, disbursed by June 30, 2022.
    • Fiscal years 2023-2024: $1,000 credit per eligible request, disbursed by June 30 of each year; if a prior year account exists, funds apply to that account.
    • For fiscal year 2023, an additional $500 credit per account is provided for those enrolled in 2023, making the total up to $1,000 (with a combined limit per account for that year).
    • Any remaining balance at end of 2024 stays in the account for future use until exhausted or until the student graduates; balances for graduates must be returned to the department.

  • General Provisions (Section H):

    • The department must prepare a report by December 31, 2023, detailing program administration, with input from a random sample of participants; annual audits may be conducted.
    • Districts, community schools, and STEM schools may advertise the ACE program.

  • Appropriations (Section 4):

    • A designated $5,000,000 in the Afterschool Child Enrichment Fund (Fund 5DV1) for FY 2026 and FY 2027.
    • Transfer of funds from General Revenue to the ACE Fund on July 1, 2026, or as soon as practicable thereafter.

  • Repeal and Effective Structure:

    • The act repeals the existing section 3310.70 and re-enacts it with the amended language.
    • The section synthesizes amendments from prior HB demonstrations and harmonizes with the current framework.

Affected Parties

  • Eligible students (ages 6-18) and their parents/guardians.
  • Families with incomes up to 400% of the federal poverty guidelines.
  • Students in districts with high absenteeism, certain district facilities, or pilot ACE program participation.
  • Public, nonpublic, and home-educated students (where applicable) seeking ACE funding.
  • School districts, community schools, and STEM schools may promote or advertise ACE.

Timelines and Procedural Aspects

  • Eligibility and account establishment: First-come, first-served basis; online request form to establish accounts.
  • Funding notes:
    • Initial $500 credit in FY 2022; subsequently, up to $1,000 per eligible request in FY 2023-2024, with adjustments for prior-year accounts.
    • End-of-year balances carry forward to subsequent fiscal years until exhausted or student graduation.
  • Administration:
    • Vendor selection with priority features; vendor oversight to prevent improper use.
    • Annual reporting and potential audits.
  • Appropriation and transfer:
    • $5 million designated for ACE in 2026-2027; transfer from General Revenue to ACE Fund on July 1, 2026 (or thereafter).

Potential Impact

  • Expands access to afterschool and enrichment opportunities through government-supported accounts.
  • Provides structured, eligible-use funds to support a range of educational activities beyond traditional instruction.
  • Creates a capped, time-bound funding mechanism with carryover provisions to sustain accounts across years.
  • Encourages districts to participate via eligibility criteria tied to district characteristics (absenteeism, facilities, pilots).
  • Introduces an operational vendor framework with app-based administration and oversight of expenditures.

Compiled from official sources — confirm details with the bill’s official record.

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