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Alabama House Bill HB334

Alabama 2023 Regular Session

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11 HB334INTRODUCED
22 Page 0
33 D7LUTT-1
44 By Representatives Garrett, Collins
55 RFD: Ways and Means Education
66 First Read: 18-Apr-23
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1111 5 D7LUTT-1 04/13/2023 KMS (L)cr 2023-483
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1313 SYNOPSIS:
1414 This bill creates the Students with Unique Needs
1515 (SUN) Education Scholarship Account Act and Program.
1616 This bill would allow parents to use funds
1717 deposited in education scholarship accounts of eligible
1818 students, to provide an individualized education
1919 program for their children.
2020 A BILL
2121 TO BE ENTITLED
2222 AN ACT
2323 To create the Students with Unique Needs (SUN)
2424 Education Scholarship Account Act and Program; to allow
2525 parents to use funds in an education scholarship account to
2626 provide an individualized education program for their
2727 children.
2828 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
2929 Section 1. This act shall be known and may be cited as
3030 the Students with Unique Needs (SUN) Education Scholarship
3131 Account Act.
3232 Section 2. As used in this act, the following terms
3333 shall have the following meanings:
3434 (1) EDUCATION SERVICE PROVIDER. A licensed and
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6464 accredited program or service providing educational services
6565 for students and approved by the State Department of
6666 Education.
6767 (2) ELIGIBLE STUDENT. A student under 19 years of age
6868 who was enrolled in and attended a public K-12 school in this
6969 state during the previous school year, except as otherwise
7070 provided in paragraph a., and who is any of the following:
7171 a. The child of a parent who is a member of the Armed
7272 Forces of the United States, who is on active duty or was
7373 killed in the line of duty, and who may or may not have been
7474 enrolled in or attended a public K-12 school in the state
7575 during the previous school year.
7676 b. A student who has an individual education plan or
7777 504 accommodation issued according to Section 504 of the
7878 Rehabilitation Act of 1973, including, but not limited to, a
7979 student who has an intellectual disability or is speech or
8080 language impaired, deaf or hard of hearing, visually impaired,
8181 dual sensory impaired, physically impaired, emotionally
8282 handicapped, specific learning disabled, autistic, or
8383 hospitalized or home bound because of illness or disability.
8484 c. A foster child who has achieved permanency through
8585 adoption or guardianship.
8686 d. Homeless and lacks fixed, regular, and adequate
8787 housing.
8888 (3) PARENT. A resident of this state who is the parent,
8989 guardian, custodian, or other individual with authority to act
9090 on behalf of a child.
9191 (4) PARTICIPATING SCHOOL. A private school that
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121121 provides education to K-12 students and has notified the State
122122 Department of Education of its intention to participate in the
123123 program and comply with the requirements of the program.
124124 (5) PRIVATE TUTORING. Tutoring services provided by
125125 tutors who are accredited by a regional or national
126126 accrediting organization.
127127 (6) PROGRAM. The Students with Unique Needs (SUN)
128128 Education Scholarship Program.
129129 (7) RESIDENT SCHOOL DISTRICT. The public school
130130 district in which the student resides.
131131 Section 3. (a) The Students with Unique Needs (SUN)
132132 Education Scholarship Account Program is created and shall be
133133 implemented commencing with the 2024-2025 school year. To
134134 participate in the program, the parent of an eligible student
135135 shall sign an agreement to do all of the following:
136136 (1) Provide an education for the eligible student in at
137137 least the subjects of reading, grammar, mathematics, social
138138 studies, science, and computer science.
139139 (2) Refrain from enrolling the eligible student in a
140140 charter school.
141141 (3) Refrain from enrolling or participating in the
142142 educational scholarship program provided through the Alabama
143143 Accountability Act of 2013.
144144 (4) Refrain from enrolling in a public school unless it
145145 is for specific contracted services pursuant to subdivision
146146 (b)(8).
147147 (b) Each parent participating in the program shall
148148 agree to use the funds in his or her eligible student's
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178178 education scholarship account for the following qualifying
179179 expenses:
180180 (1) Tuition and fees at a participating school.
181181 (2) Textbooks required by a participating school.
182182 (3) Payments for private tutoring.
183183 (4) Payments for the purchase of curricula or
184184 instructional materials.
185185 (5) Tuition and fees for an approved nonpublic online
186186 learning program.
187187 (6) Fees for statewide assessments, advanced placement
188188 examinations, or related courses, fees associated with
189189 state-recognized industry examinations, and any examinations
190190 related to college or university admission.
191191 (7) Education services for students with disabilities
192192 from a licensed or accredited practitioner or education
193193 service provider.
194194 (8) Contracted services provided by a public school
195195 district including specific classroom instruction.
196196 (c) The amount the state shall deposit into an
197197 education scholarship account for a participating eligible
198198 student shall be 95 percent of the gross state Foundation
199199 Program cost-per-student for a public K-12 student during the
200200 applicable tax year.
201201 (d) A participating school, private tutor, or other
202202 education service provider may not refund, rebate, or share
203203 any portion of a student's education scholarship account with
204204 a parent or the student in any manner. The funds in an
205205 education scholarship account may only be used for qualifying
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235235 expenses.
236236 (g) Funds received pursuant to this section may not be
237237 considered taxable income of a parent.
238238 (h) Eligible students who were previously enrolled in
239239 the program shall have priority for renewal in the program.
240240 Section 4. The program shall be limited to 500 students
241241 for the 2024-2025 school year, with new enrollment limited to
242242 500 additional students each school year thereafter. Subject
243243 to appropriations from the Education Trust Fund, the education
244244 scholarship account of a student shall be funded according to
245245 subsection (c) of Section 3.
246246 Section 5. (a) The Department of Revenue shall adopt
247247 rules as necessary for the administration of the program.
248248 (b) The Department of Revenue shall establish education
249249 scholarship accounts for eligible students by doing all of the
250250 following:
251251 (1) Receiving applications and determining student
252252 eligibility in accordance with this section. Upon receipt of
253253 an application, the Department of Revenue shall provide to the
254254 State Department of Education information relating to the
255255 student which will allow the State Department of Education to
256256 include the student for funding.
257257 (2) Establishing and maintaining separate accounts for
258258 each eligible student.
259259 (3) Verifying qualifying expenditures.
260260 (4) Returning any unused funds to the State Department
261261 of Education when a student is no longer eligible for an
262262 education scholarship account. The funds returned to the State
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292292 Department of Education shall be allocated to the resident
293293 school district of the student.
294294 (c) Program payments made pursuant to this section
295295 shall continue until a participating student enrolls in a
296296 public school or graduates from high school. Purchasing
297297 contracted services from a public school system pursuant to
298298 subdivision (b)(8) of Section 3 does not constitute
299299 enrollment.
300300 (d) The Department of Revenue shall receive five
301301 percent of funds not deposited into an education scholarship
302302 account pursuant to subsection (c) of Section 3, as costs for
303303 administering the program.
304304 (e) Participating schools and education service
305305 providers shall submit reports quarterly to the Department of
306306 Revenue detailing the number of students participating,
307307 services provided, and other information requested by the
308308 Department of Revenue.
309309 (f) To avoid duplicate payments, the Department of
310310 Revenue shall compare the list of participating students with
311311 the public school enrollment lists provided by the State
312312 Department of Education before each program payment is made.
313313 (g) The Department of Revenue shall conduct or contract
314314 for the auditing of individual education scholarship accounts.
315315 At a minimum, the Department of Revenue shall conduct random
316316 audits of education scholarship accounts annually and, if a
317317 misuse of funds in an education scholarship account is
318318 discovered, may prohibit further participation by the parent
319319 in the program.
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349349 (h) If evidence of fraudulent use of an account is
350350 found, the Department of Revenue shall refer the case to local
351351 or state law enforcement agencies for further investigation.
352352 Section 6. (a) The State Department of Education shall
353353 do all of the following:
354354 (1) Create, or contract for the creation of, a standard
355355 application form for parents of eligible students to submit to
356356 the Department of Revenue to establish their student's
357357 eligibility for the program and ensure the form is readily
358358 available through various sources, including the Internet.
359359 (2) Provide to parents of participating students a
360360 written explanation of qualifying expenses, their
361361 responsibilities under the program, and the duties and
362362 responsibilities of the State Department of Education.
363363 (3) Maintain and routinely update the list of approved
364364 education service providers on the State Department of
365365 Education website.
366366 (4) Comply with all student privacy laws.
367367 (5) Collect test results.
368368 (6) Provide test results, associated learning gains,
369369 and graduation rates to the public on the State Department of
370370 Education website commencing with the fourth year of test and
371371 graduation related data collection. The information shall be
372372 aggregated by the grade level, gender, family income level,
373373 number of years of participation in the program, and race of
374374 the student.
375375 (7) Provide graduation rates to the public on the State
376376 Department of Education website commencing with the fourth
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406406 year of test and test related data collection.
407407 Section 7. (a) To ensure that funds are spent
408408 appropriately, the Department of Revenue shall adopt rules and
409409 policies necessary for the auditing of education scholarship
410410 accounts.
411411 (b)(1) The Department of Revenue shall develop a system
412412 for the payment of benefits including, but not limited to,
413413 allowing private schools and education service providers to
414414 invoice the Department of Revenue for qualified expenses or
415415 allowing the parent or guardian who submitted the program
416416 application to seek reimbursement for qualified expenses.
417417 (2) The Department of Revenue may make direct payments
418418 to private schools and education service providers or
419419 reimbursement to the parent or guardian who submitted the
420420 program application pursuant to a check, warrant, electronic
421421 funds transfer, or any other means of payment deemed by the
422422 Department of Revenue to be commercially viable or cost
423423 effective. The system shall provide maximum flexibility to
424424 parents by facilitating requests for preapproval of and
425425 reimbursements for qualifying expenses.
426426 (3) The Department of Revenue may also provide, by
427427 rule, for the payment of education service providers on a
428428 quarterly or annual basis.
429429 (c) The Department of Revenue shall adopt a process for
430430 removing private school education service providers that
431431 defraud parents and for referring cases of fraud to law
432432 enforcement.
433433 (d) The Department of Revenue shall establish or
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463463 contract for the establishment of an online anonymous fraud
464464 reporting service.
465465 (e) The Department of Revenue shall establish or
466466 contract for the establishment of an anonymous telephone
467467 hotline for fraud reporting.
468468 Section 8. (a) The Department of Revenue shall be
469469 subject to the Alabama Administrative Procedure Act, Chapter
470470 22, Title 41, Code of Alabama 1975, and shall ensure that fair
471471 processes exist to determine whether an intentional or
472472 substantial misuse of the program funds have occurred.
473473 (b) The Department of Revenue shall conduct or contract
474474 for audits of education service providers or any other
475475 recipients of education scholarship account funds where there
476476 is evidence of misuse of funds or other violations of the
477477 program.
478478 (c) The Department of Revenue may bar a private school,
479479 an education service provider, or other recipient of education
480480 scholarship account funds from accepting payments from
481481 education scholarship accounts if the Department of Revenue
482482 determines the private school has done any of the following:
483483 (1) Misrepresented information, obtained education
484484 scholarship account funds by fraud, or failed to refund any
485485 over payments in a timely manner.
486486 (2) Failed to provide an eligible student with the
487487 educational services funded by the education scholarship
488488 account.
489489 (3) Routinely failed to comply with the accountability
490490 standards established in this act.
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520520 (d) If a participating school or education services
521521 provider is barred from the program, the State Department of
522522 Education shall notify eligible students and their parents of
523523 the decision as soon as practicable. The State Department of
524524 Education shall coordinate the prohibition to coincide with
525525 the end of the academic school year. Parents, participating
526526 students, education service providers, and other recipients of
527527 education scholarship account funds may make an administrative
528528 appeal of the Department of Revenue decision.
529529 Section 9. (a) To ensure that each student is treated
530530 fairly and kept safe, all participating schools and education
531531 service providers shall do all of the following:
532532 (1) Comply with all health and safety laws or codes
533533 that apply to private schools.
534534 (2) Comply with the same financial and academic
535535 accountability requirements of a public school system.
536536 (3) Hold a valid occupancy permit if required by the
537537 municipality where the school is located.
538538 (4) Certify that the school complies with the
539539 nondiscrimination policies set forth in 42 U.S.C. § 1981.
540540 (5) Comply with the Alabama Child Protection Act of
541541 1999, Chapter 22A of Title 16, Code of Alabama 1975.
542542 (b) To ensure that funds are spent appropriately, all
543543 participating schools shall do the following:
544544 (1) Provide parents with a receipt for all qualifying
545545 expenses at the school.
546546 (2) Demonstrate financial viability by showing that any
547547 funds that may be provided from an education scholarship
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577577 account may be repaid by doing all of the following:
578578 a. Filing with the Department of Revenue prior to the
579579 start of the school year a surety bond payable to the state in
580580 an amount equal to the aggregate amount of the funds from
581581 education scholarship accounts expected to be paid during the
582582 school year from eligible students admitted at the
583583 participating school.
584584 b. Filing with the Department of Revenue prior to the
585585 start of the school year financial information that
586586 demonstrates the school has the ability to pay an aggregate
587587 amount equal to the amount of the funds from education
588588 scholarship accounts expected to be paid during the school
589589 year to eligible students admitted to the participating
590590 school.
591591 (c) In order to allow parents and taxpayers to measure
592592 the achievements of the program, parents shall ensure all of
593593 the following:
594594 (1) Each year their eligible student takes the state
595595 achievement test at their resident school district. Students
596596 with disabilities for whom standardized testing is not
597597 appropriate, as outlined in their individualized education
598598 plan, are exempt from this requirement.
599599 (2) Provide the results of these tests to the
600600 Department of Revenue on an annual basis, beginning with the
601601 first year of testing.
602602 (3) That student information is reported in a way which
603603 allows the State Department of Education to aggregate data as
604604 required by this act.
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634634 (4) Inform the State Department of Education of an
635635 eligible student's graduation from high school.
636636 Section 10. The resident school district shall provide
637637 a participating school or education service provider that has
638638 admitted an eligible student under the program with the
639639 complete copy of the eligible student's school records, while
640640 complying with the Family Educational Rights and Privacy Act
641641 of 1974, 20 U.S.C. § 1232g.
642642 Section 11. Nothing in this act shall alter, amend, or
643643 limit the application of the Alabama High School Athletic
644644 Association's constitution and bylaws to member schools.
645645 Section 12. This act shall become effective on the
646646 first day of the third month following its passage and
647647 approval by the Governor, or its otherwise becoming law.
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