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HB 123

Wyoming HouseFailed

Summary

HB 123, “Education savings accounts”, was introduced in the House on Feb 8, 2026 by Rep. Kenneth Clouston (R) with 4 co-sponsors. It last saw action on Feb 10, 2026: Failed Introduction 26-35-1-0-0.


Record

Text

HB 123 has 4 co-sponsors and 1 roll call.

hb123/introduced.txt
2026 26LSO-0321
STATE OF WYOMING
HOUSE BILL NO. HB0123
Education savings accounts.
Sponsored by: Representative(s) Clouston, Andrew, Davis and
Larson, JT and Senator(s) Boner
A BILL
for
AN ACT relating to education; authorizing education savings
accounts; creating the Wyoming education savings account
expenditure account; providing for a transfer of funds to
the Wyoming education savings accounts expenditure account;
providing for the use and administration of education
savings accounts for education; specifying duties of the
state superintendent of public instruction; providing
rulemaking authority; making conforming amendments;
providing appropriations; authorizing full-time positions;
repealing provisions; providing a contingent effective date
pending certification by the governor of actions of the
Wyoming supreme court; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
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Section 1. W.S. 21-2-1001 through 21-2-1010 are
created to read:
ARTICLE 10
WYOMING EDUCATION SAVINGS ACCOUNTS ACT
21-2-1001. Short title.
This act shall be known as the "Wyoming Education Savings
Accounts Act." The program created by this act shall be
known as the "ESA program."
21-2-1002. Definitions.
(a) As used in this act:
(i) "Curriculum" means a course of study for
content areas or grade levels, including any supplemental
materials required or recommended by the course of study;
(ii) "Education savings account" or "ESA" means
the spending account for an eligible student's education
where funds are allocated by the state superintendent of
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public instruction, where a parent of an ESA student enters
into an agreement with the state superintendent to choose
and pay for qualifying education expenses to educate the
ESA student, subject to the requirements and conditions of
this act;
(iii) "Education service provider" means a
person or organization, including a qualified school, that
receives payments authorized by a parent from education
savings accounts to provide educational goods and services
to ESA students;
(iv) "ESA student" means a student eligible for
an ESA pursuant to W.S. 21-2-1004(a) who is participating
in the ESA program;
(v) "Expenditure account" means the Wyoming
education savings account expenditure account created by
this act;
(vi) "Parent" means a resident of this state who
is the parent or legal guardian of an eligible student or
ESA student and may include an eligible student not less
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than eighteen (18) years of age or an ESA student who is an
emancipated minor;
(vii) "Pre-kindergarten" means an educational
program with the primary goal of preparing children for
kindergarten that provides not more than one (1) school
year of education prior to entry into kindergarten;
(viii) "Qualified school" means a
pre-kindergarten or a nonpublic primary or secondary school
certified by the state superintendent of public instruction
pursuant to W.S. 21-2-1006(a) and located in or that
provides education services in this state. "Qualified
school" may include instruction provided through online
means;
(ix) "This act" means W.S. 21-2-1001 through
21-2-1010.
21-2-1003. Education savings accounts; Wyoming
education savings accounts expenditure account.
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(a) The total amount to be deposited in an education
savings account for an ESA student each year shall be
determined by the student's household income compared to
the federal poverty levels, using the most recent federal
poverty guidelines for the student's household size and
income, as follows:
(i) Six thousand dollars ($6,000.00) for
students whose household income is at or below one hundred
fifty percent (150%) of the federal poverty level;
(ii) Four thousand eight hundred dollars
($4,800.00) for students whose household income is at or
below two hundred percent (200%) of the federal poverty
level but more than one hundred fifty percent (150%) of the
federal poverty level;
(iii) Three thousand six hundred dollars
($3,600.00) for students whose household income is at or
below two hundred fifty percent (250%) of the federal
poverty level but more than two hundred percent (200%) of
the federal poverty level;
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(iv) Three thousand dollars ($3,000.00) for
students whose household income is at or below three
hundred percent (300%) of the federal poverty level but
more than two hundred fifty percent (250%) of the federal
poverty level.
(b) Payments to ESAs under this act shall be made by
the state superintendent of public instruction from the
expenditure account, which is hereby created. The
expenditure account shall consist of funds transferred to
it and other funds appropriated by the legislature. All
earnings from investment of the expenditure account shall
be credited to the expenditure account. Any unencumbered,
unobligated balance of the expenditure account at the end
of each fiscal year shall not revert but shall remain in
the expenditure account and shall be expended to fund ESAs
as provided by this act.
(c) Payments to each approved ESA shall be disbursed
on a quarterly basis by the state superintendent.
21-2-1004. ESA program eligibility; parent agreement;
ESA administration.
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(a) Subject to the availability and appropriation of
funds as determined by the legislature, any child who is a
Wyoming resident, who meets one (1) of the following
qualifications, and subject to W.S. 21-2-1003(a), shall be
eligible to receive an ESA subject to the provisions of
this act:
(i) The child has not graduated from high school
or received a high school equivalency certificate and is
eligible to attend a public school in this state; or
(ii) The child is not less than four (4) years
of age as of August 1 of the year in which the application
for an ESA is made and is not yet eligible or ready to
attend kindergarten in this state.
(b) To participate in the ESA program, the parent of
an ESA student shall sign an agreement with the state
superintendent that:
(i) Requires use of the ESA funds for the
following qualifying expenses to educate the ESA student:
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(A) Tuition and fees at a qualified school;
(B) Tutoring services provided by a person
or a tutoring facility. The tutoring services shall not be
provided by an ESA student's immediate family;
(C) Services contracted for and provided by
a public school district, including services provided by a
public charter school. Services under this subparagraph may
include, without limitation, individual classes and
extracurricular activities and programs;
(D) Textbooks, curriculum and 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;
(E) Computer hardware or other
technological devices that are primarily used to help meet
an ESA student's educational needs;
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(F) Educational software and applications;
(G) School uniforms;
(H) Fees for nationally standardized
assessments, advanced placement examinations, examinations
related to college or university admission and tuition and
fees for preparatory courses for the exams;
(J) Tuition and fees for summer education
programs and specialized after school education programs;
(K) Tuition, fees, instructional materials
and examination fees at a career or technical school;
(M) Educational services and therapies
including, but not limited to, occupational, behavioral,
physical, speech-language and audiology therapies;
(N) Tuition and fees at an institution of
higher education;
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(O) Fees for transportation paid to a
fee-for-service transportation provider for the student to
travel to and from an education service provider;
(P) Any other educational expense approved
by the state superintendent.
(ii) For students found eligible for an ESA
under paragraph (a)(i) of this section, the student shall:
(A) Receive instruction in, at minimum,
reading, writing, mathematics, civics, including studies of
the United States constitution and the constitution of the
state of Wyoming, history, literature and science. No
parent shall be required to allow their child to receive
any instruction that conflicts with the parent's or child's
religious doctrines;
(B) Take the statewide assessments
administered pursuant to W.S. 21-2-304(a) or a nationally
recognized achievement exam;
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(C) Certify that the ESA student is not, or
will not be, enrolled in a public school district upon
receipt of the ESA and release the applicable school
district from all obligations to educate the ESA student.
This subparagraph shall not:
(I) Require an eligible student to
withdraw from a public school district before applying for
or receiving an ESA if the student withdraws from the
public school district before receiving or expending any
monies in the student's ESA;
(II) Prevent a qualified student from
applying in advance for an ESA to be funded beginning the
following school year; or
(III) Prevent a public school district
from charging an ESA for any services provided to the
qualified student to the extent authorized by law.
(c) Funds in an ESA shall not be refunded, rebated or
shared with a parent of an ESA student in any manner. Any
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refund or rebate for goods or services purchased with ESA
funds shall be credited directly to the student's ESA.
(d) Parents may make payments for costs of
educational goods and services not covered by the funds in
the ESA. Personal deposits into an ESA shall not be
permitted.
(e) An ESA shall remain active and any unused funds
shall not revert until the parent withdraws the ESA student
from the ESA program or until the ESA student is no longer
eligible for the ESA program, unless the ESA is closed
because of a substantial misuse of funds. When an ESA is
closed, any unused funds shall revert to the Wyoming
education savings accounts expenditure account.
(f) Nothing in this act shall be construed to require
an ESA student to be enrolled, full-time or part-time, in a
nonpublic school. An ESA student receiving individualized
instruction in a nonschool setting shall not be construed
to be a student of a home-based educational program as
defined in W.S. 21-4-101(a)(v).
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21-2-1005. Application, award and allocation of ESAs.
(a) A parent may apply to the state superintendent of
public instruction to establish an ESA for an eligible
student.
(b) The state superintendent shall establish
procedures for approving applications in an expeditious
manner.
(c) The state superintendent shall create a standard
form that parents may submit to establish their student's
eligibility for the ESA program and shall ensure that the
application form is publicly available and that completed
applications may be submitted through various sources,
including the internet.
(d) Except as provided under subsection (e) of this
section, the state superintendent shall approve an
application for an ESA if:
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(i) The parent submits an application for an ESA
in accordance with application procedures established by
the state superintendent;
(ii) The student is an eligible student pursuant
to W.S. 21-2-1004(a);
(iii) Funds are available for the ESA; and
(iv) The parent signs an agreement with the
state superintendent as provided in W.S. 21-2-1004(b).
(e) Except as provided under this subsection, eighty
percent (80%) of the ESAs shall be awarded to students
eligible pursuant to W.S. 21-2-1004(a)(i) and the remaining
twenty percent (20%) shall be awarded to students eligible
pursuant to W.S. 21-2-1004(a)(ii) each year. Any funds
allocated under this subsection for the award of ESAs to
students eligible pursuant to W.S. 21-2-1004(a)(ii) that
are not awarded in any school year may be awarded to
students eligible pursuant to W.S. 21-2-1004(a)(i). If the
number of applications for ESAs exceeds the available funds
for any school year, the students shall be selected on a
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first-come, first-served basis, except preference shall be
given to an eligible student who received funds under the
ESA program in the immediately preceding school year.
(f) For students eligible for an ESA under W.S.
21-2-1004(a)(i), the following shall apply:
(i) A signed agreement between the parent and
state superintendent under W.S. 21-2-1004(b) shall satisfy
the compulsory school attendance requirements of W.S.
21-4-102 and the parent shall annually provide the
student's resident public school district notice of intent
to participate in the ESA program;
(ii) Upon notice to the state superintendent, an
ESA student may choose to stop receiving an ESA and enroll
full-time in a public school. Enrolling as a full-time
student in a public school shall result in the immediate
suspension of payment of additional funds to the student's
ESA and the state superintendent may close the ESA. If an
eligible student applies to the state superintendent to
return to the ESA program, payments into the student's
existing ESA may resume if the ESA is still open and
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active. A new ESA may be established if an eligible
student's ESA was closed;
(iii) The state superintendent may adopt rules
and policies to provide a process for ESA students who
choose to withdraw from the ESA program and enroll
full-time in a public school.
21-2-1006. Duties of the state superintendent of
public instruction to administer the education savings
accounts program.
(a) The state superintendent of public instruction
shall:
(i) Establish a certification process for
education service providers, that shall, at minimum, ensure
ESA students attending qualified schools in kindergarten
through grade twelve (12) receive instruction in reading,
writing, mathematics, civics, including studies of the
United States constitution and the constitution of the
state of Wyoming, history, literature and science and for
pre-kindergarten ensure ESA students at minimum receive
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instruction necessary for preparation to enter
kindergarten;
(ii) Maintain a list of certified education
service providers and ensure the list is available to
parents of ESA students. The list shall enable the
education service provider to indicate if the education
service provider is accepting new ESA students;
(iii) Provide parents with a written explanation
of the qualified expenses for ESA funds, the
responsibilities of parents and the duties of the state
superintendent related to administration of the ESA
program;
(iv) For students eligible for an ESA under W.S.
21-2-1004(a)(i), ensure that parents of ESA students with
disabilities receive notice that participation in the ESA
program is a parental placement under 20 U.S.C. § 1412,
Individuals with Disabilities Education Act (IDEA), along
with an explanation of the rights that parentally placed
students possess under IDEA and any applicable state laws
and regulations;
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(v) If determined necessary by the state
superintendent, contract with one (1) or more private
organizations to administer the ESA program or specific
functions of the ESA program including, without limitation,
contracting with private financial management firms to
manage ESAs. The state superintendent shall comply with
applicable procurement statutes and rules in securing
services under this paragraph;
(vi) Implement a commercially viable,
cost-effective and user-friendly system for payment of
services from ESAs to education service providers by
electronic or online funds transfer. The payment system
shall not rely exclusively on requiring parents to be
reimbursed for out-of-pocket expenses. The payment system
shall provide maximum flexibility to parents by
facilitating direct payments to education service providers
as well as requests for pre-approval of and reimbursements
for qualifying expenses listed in W.S. 21-2-1004(b)(i). The
state superintendent may contract with private
organizations to develop the payment system;
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(vii) Continue certifying deposits into a
student's ESA until:
(A) The state superintendent determines
that the ESA student is no longer an eligible student;
(B) The state superintendent determines
there was an intentional and substantial misuse of the
funds in the ESA;
(C) The ESA student withdraws from the ESA
program; or
(D) The ESA student enrolls full-time in a
public school.
(viii) Conduct or contract for the auditing of
individual ESAs and shall at a minimum conduct or contract
for audits of not less than two percent (2%) of all ESAs,
selected randomly, on an annual basis;
(ix) Investigate reports of intentional and
substantial misuse of ESA funds and prohibit an eligible
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ESA student from receipt of ESA funds if the state
superintendent determines that the ESA student or ESA
student's parent intentionally and substantially misused
ESA funds. The state superintendent shall by rule create
procedures to ensure that a fair process exists to
determine whether an intentional and substantial misuse of
ESA funds has occurred. The state superintendent shall have
the authority to refer suspected cases of intentional and
substantial misuse of ESA funds to the attorney general for
investigation if evidence of fraudulent use of ESA funds is
obtained;
(x) Establish rules to prohibit an education
service provider from accepting payments from ESAs if the
state superintendent determines the education service
provider has:
(A) Intentionally and substantially
misrepresented information or failed to refund any
overpayments in a timely manner; or
(B) Routinely failed to provide students
with required educational goods or services.
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(xi) Notify parents and ESA students within ten
(10) business days if the state superintendent prohibits an
education service provider from receiving ESA funds under
paragraph (x) of this subsection;
(xii) Students eligible for an ESA under W.S.
21-2-1004(a)(i) shall participate in statewide assessments
administered pursuant to W.S. 21-2-304(a). The results of
the statewide assessments taken by ESA students shall be
compiled to analyze student proficiency and academic
progress, including an analysis of graduation rates,
proficiency and progress based on grade level. The results
of the analysis under this paragraph shall be included in
the annual report required pursuant to W.S. 21—2-204(k).
(b) If an education service provider requires partial
payment of tuition or fees prior to the start of the school
year to reserve space for an ESA student admitted to the
education service provider, the state superintendent may
certify the partial payment prior to the start of the
school year in which the ESA is awarded and deduct that
amount from subsequent quarterly ESA deposits. If an ESA
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student decides not to use the education service provider,
the partial payment made under this subsection shall be
returned to the state superintendent by the education
service provider and credited to the student's ESA.
(c) The state superintendent may adopt rules that are
consistent with this act and that are necessary for its
administration including rules:
(i) Establishing or contracting for the
establishment of an online anonymous fraud reporting
service;
(ii) Establishing an anonymous telephone hotline
for fraud reporting;
(iii) Requiring a surety bond for education
service providers receiving more than one hundred fifty
thousand dollars ($150,000.00) in ESA funds; and
(iv) Establishing a procedure for refunding
payments from education service providers to ESAs.
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21-2-1007. Education service providers.
(a) Before receiving payment from an ESA, a
prospective education service provider shall:
(i) Be certified by the state superintendent of
public instruction pursuant to W.S. 21-2-1006(a) to receive
payments from ESAs;
(ii) Agree not to refund, rebate or share ESA
funds with parents or ESA students in any manner, except
that funds may be remitted or refunded to an ESA in
accordance with procedures established by the state
superintendent.
(b) Nothing in this act shall be deemed to limit the
independence or autonomy of an education service provider
or to make the actions of an education service provider the
actions of state government or public school district.
(c) Education service providers shall be given
maximum freedom to provide instruction and services in
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their usual and customary manner to meet the educational
needs of ESA students.
(d) An education service provider that accepts
payment from an ESA pursuant to this act is not an agent of
the state or federal government or a public school
district.
(e) Nothing in this act shall be construed to expand
the regulatory authority of the state, its officers or any
school district to impose any additional regulation of
education service providers beyond those necessary to
enforce the requirements of the ESA program.
(f) Unless a direct conflict with this act exists, an
education service provider shall not be required to alter
its creed, practices, admission policy or curriculum to
accept payments authorized by a parent from an ESA.
21-2-1008. Responsibilities of public schools and
school districts.
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A public school or school district that previously enrolled
an ESA student shall provide an education service provider
that has enrolled the ESA student with a complete copy of
the ESA student's school records as necessary, while
complying with 20 U.S.C. § 1232g, the Family Educational
Rights and Privacy Act of 1974.
21-2-1009. Legal liability.
No liability shall arise on the part of the state
superintendent of public instruction or the state or any
public school or school district based on the award of or
use of an ESA pursuant to this act.
21-2-1010. Contingent effective date; sunset date.
(a) This act shall be effective five (5) days after
the date that the governor, on advice from the attorney
general, certifies to the secretary of state that the
Wyoming supreme court has found that monetary deposits
provided to education savings accounts for ESA students
pursuant to W.S. 21-2-903 are unconstitutional or
unenforceable. After receiving certification from the
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governor under this subsection, the secretary of state
shall report that fact to the management council of the
legislature and the joint education interim committee and
shall immediately publish the effective date of this act on
the website of the secretary of state's office. The
publication under this subsection shall also provide that
W.S. 21-2-901 through 21-2-909 are repealed on that date.
(b) This act shall not be effective if the attorney
general certifies to the governor that the Wyoming supreme
court has found that the provisions of W.S. 21-2-901
through 21-2-909 shall be upheld or are unconstitutional or
unenforceable for a reason other than the monetary deposits
provided to education savings accounts.
Section 2. W.S. 21-2-901, 21-4-102(d), 21-4-301(b)
and 21-13-310(a)(ix) are amended to read:
21-2-901. Short title; sunset date.
(a) This act shall be known as the "Steamboat Legacy
Scholarship Act." The program created by this act shall be
known as the "ESA program."
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(b) This act shall be repealed five (5) days after
the date that the governor, on advice of the attorney
general, certifies to the secretary of state that the
Wyoming supreme court has found that monetary deposits
provided to education savings accounts for ESA students
pursuant to W.S. 21-2-903 are unconstitutional or
unenforceable.
21-4-102. When attendance required; exemptions;
withdrawal.
(d) A child participating in the ESA program
specified by pursuant to W.S. 21-2-901 or 21-2-1001 through
21-2-1010, if effective, and who provides notice of
participation in the ESA program to the child's school
district shall be deemed to be in compliance with the
compulsory attendance requirement under this section.
21-4-301. Schools to be free and accessible to all
children; minimum school year.
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(b) A parent, guardian or other person having control
or charge of any child eligible to attend public school in
Wyoming under subsection (a) of this section shall have the
option to apply for the ESA program specified by under W.S.
21-2-901 or 21-2-1001 through 21-2-1010, if effective, on
behalf of the child.
21-13-310. Annual computation of district revenues.
(a) To ensure revenues available to each district are
uniformly sufficient to enable compliance with the uniform
standards for educational programs prescribed under W.S.
21-9-101 and 21-9-102 and to secure state board
accreditation of educational programs under W.S.
21-2-304(a)(ii), the revenues specified under this
subsection shall be deemed state revenues and shall be
considered in determining the amount to be distributed to
each district under W.S. 21-13-311. A district shall make
an annual computation of the following revenues:
(ix) The amount of tuition paid to the district
during the previous school year, including any amount
charged under W.S. 21-4-501 and any amount assessed in
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excess of the costs incurred for adult education programs,
summer school programs, programs provided under an
agreement for cooperative educational programs under W.S.
21-20-101 through 21-20-111 and any amount assessed for
programs and services for children with disabilities, but
excluding any tuition assessed by a district for the
provision of virtual education programs to participating
students pursuant to W.S. 21-13-330, any tuition assessed
by a district for the provision of part-time educational
programs to participating students pursuant to W.S.
21-2-904(b)(i)(C) or 21-2-1004(b)(i)(C), if effective, and
21-4-502(c), any revenues received by a district from post
secondary education option programs provided under W.S.
21-20-201 or for the provision of educational programs to a
nonresident student placed in a juvenile detention facility
pursuant to an agreement with the student's resident school
district;
Section 3. There is appropriated forty million
dollars ($40,000,000.00) from the general fund to the
education savings accounts expenditure account created by
W.S. 21-2-1003(b) for purposes of the Wyoming education
savings accounts program. This appropriation shall be
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subject to the terms of W.S. 21-2-1003(b). If the state
superintendent determines it is necessary, not more than
three percent (3%) of the funds appropriated by this
section may be withheld to pay for the costs of
administering the ESA program. This appropriation shall
not be transferred or expended for any other purpose. It
is the intent of the legislature that this appropriation be
included in the standard budget of the Wyoming department
of education for the immediately succeeding fiscal
biennium.
Section 4.
(a) The department of education is authorized two (2)
full-time employees for the purposes of this act. There is
appropriated four hundred eighty thousand dollars
($480,000.00) from the general fund to the department of
education for the salary and benefits of the positions
created by this subsection. This appropriation shall be for
the period beginning with the effective date of this act
and ending June 30, 2028. This appropriation shall not be
transferred or expended for any other purpose and any
unexpended, unobligated funds remaining from this
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appropriation shall revert as provided by law. If this act
becomes effective, it is the intent of the legislature that
this appropriation and these positions be included in the
department of education's standard budget for the
immediately succeeding fiscal biennium.
(b) There is appropriated four hundred thousand
dollars ($400,000.00) from the general fund to the
department of education for contractual services (900
series) necessary to implement this act. This appropriation
shall be for the period beginning with the effective date
of this act and ending June 30, 2028. These funds shall not
be transferred or expended for any other purpose and any
unexpended, unobligated funds remaining from this
appropriation shall revert as provided by law. If this act
becomes effective, it is the intent of the legislature that
this appropriation for contractual services (900 series)
necessary to implement this act be included in the
department of education's standard budget for the
immediately succeeding fiscal biennium.
(c) The department of education shall report annually
on or before September 1 to the joint education interim
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committee on the expenditures from the appropriation under
subsection (b) of this section.
Section 5. The state superintendent of public
instruction shall adopt rules and take other actions as
necessary to enable students to enroll in the ESA program
created by this act for school year 2027-2028. The state
superintendent shall begin accepting applications for the
ESA program not later than January 1, 2027.
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Section 6. This act shall be effective five (5) days
after the date that the governor, on advice from the
attorney general, certifies to the secretary of state that
the Wyoming supreme court has found that monetary deposits
provided to education savings accounts for ESA students
pursuant to W.S. 21-2-903 are unconstitutional or
unenforceable. After receiving certification from the
governor under this subsection, the secretary of state
shall report that fact to the management council of the
legislature and the joint education interim committee and
shall immediately publish the effective date of this act on
the website of the secretary of state's office. The
publication under this subsection shall also provide that
W.S. 21-2-901 through 21-2-909 are repealed on that date.
(END)
33 HB0123

AN ACT relating to education; authorizing education savings accounts; creating the Wyoming education savings account expenditure account; providing for a transfer of funds to the Wyoming education savings accounts expenditure account; providing for the use and administration of education savings accounts for education; specifying duties of the state superintendent of public instruction; providing rulemaking authority; making conforming amendments; providing appropriations; authorizing full-time positions; repealing provisions; providing a contingent effective date pending certification by the governor of actions of the Wyoming supreme court; and providing for an effective date.

Sponsors

Rep. Kenneth Clouston (R) sponsors HB 123, and 4 members have co-sponsored it.

History

HB 123 has taken 3 actions since Feb 8, 2026, the latest on Feb 10, 2026.

ChamberAction
Feb 10, 2026
House
Failed Introduction 26-35-1-0-0
Feb 9, 2026
House
Received for Introduction
Feb 8, 2026
Bill Number Assigned

Votes

HB 123 went to 1 roll call in the House, the latest on Feb 10, 2026 at 2635.

ChamberQuestion
Yea
Nay
Feb 10, 2026
House
Failed Introduction 26-35-1-0-0
26
35

Source: wyoleg.gov · legiscan.com