(a) In administering the IEA program, the department shall:

(1) Remit funds to a participating student's IEA account on at least a quarterly basis. Any funds awarded under this part shall be the entitlement of only the eligible student under the supervision of the student's parent. The maximum annual amount to which an eligible student is entitled under this part shall be equal to the amount representing the per pupil state and local funds generated and required through the basic education program (BEP) for the LEA in which the student resides and is zoned to attend. For the purpose of funding calculations, each eligible student who participates in the program shall be counted in the enrollment figures for the LEA in which the student resides and is zoned to attend. The IEA funds shall be subtracted from the state funds otherwise payable to the LEA;

(2)

(A) Create a standard form that a parent of a student may submit to establish the student's eligibility for an IEA. The department shall make the application readily available to interested families through various sources, including the Internet; and

(B) In accordance with state board of education rules promulgated in consultation with the department of education and the department of health, create an application and approval process for nonpublic schools to become participating schools;

(3) Establish application and participation timelines that shall maximize student and school participation;

(4) Provide parents of participating students with a written explanation of the allowable uses of IEAs, the responsibilities of parents, and the duties of the department;

(5) Ensure that lower-income families are made aware of the program and their children's potential eligibility;

(6) Adopt policies necessary for the administration of the IEA program, including:

(A) Policies for conducting or contracting for random, quarterly, or annual reviews of accounts;

(B) Policies for establishing or contracting for the establishment of an online anonymous fraud reporting service; and

(C) Policies for establishing an anonymous telephone hotline for reporting fraud; and

(7) Post on its web site a list of participating schools for each school year, the grades taught in the school and other information that the department determines shall assist parents in selecting participating schools for their children.

(b) The department may deduct an amount up to six percent (6%) from appropriations used to fund IEAs to cover the costs of overseeing the funds and administering the program.

(c) In compliance with all state and federal student privacy laws, an LEA shall provide a participating school that has admitted an eligible student under this part with a complete copy of the student's school records in the possession of the LEA.