Sec. 7. (a) The department shall freeze the account established under section 1 of this chapter of any parent of an enrichment student who:

(1) fails to comply with the terms of the agreement established under section 1 of this chapter;

(2) fails to comply with applicable laws or regulations; or

(3) substantially misuses funds in the account.

     (b) The department shall send written notice to the parent of the enrichment student stating the reason for the freeze under subsection (a). The department may also send notice to the attorney general or the prosecuting attorney in the county in which the parent of the enrichment student resides if the department believes a crime has been committed or a civil action relating to the account is necessary.

     (c) A parent of an enrichment student whose account has been frozen under subsection (a) may petition the department for redetermination of the decision under subsection (a) within thirty (30) days after the date the department sends notice to the parent of the enrichment student under subsection (b). The petition must contain a written explanation stating why the department was incorrect in freezing the account under subsection (a). If the department does not receive a timely submitted petition from a parent of an enrichment student under this subsection, the department shall terminate the account.

     (d) The department shall review a petition received under subsection (c) within fifteen (15) business days of receipt of the petition and issue a redetermination letter to the parent of the enrichment student. If the department overturns the department’s initial decision under subsection (a), the department shall immediately unfreeze the account. If the department affirms the decision under subsection (a), the department shall give notice of the affirmation to the parent of the enrichment student and terminate the account.

As added by P.L.168-2022, SEC.22.