Alabama 2023 Regular Session

Alabama House Bill HB442 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB442INTRODUCED
2	2	Page 0
3	3	SK3V75-1
4	4	By Representatives Garrett, Collins
5	5	RFD: Ways and Means Education
6	6	First Read: 09-May-23
7	7	2023 Regular Session
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13	13	6 SK3V75-1 05/08/2023 KMS (L)cr 2023-1992
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15	15	SYNOPSIS:
16	16	This bill would create the Alabama Fits All
17	17	Scholarship Program.
18	18	This bill would require the State Board of
19	19	Education to contract with a program manager to
20	20	administer the program and would authorize the program
21	21	manager to establish scholarship accounts on behalf of
22	22	eligible students to pay for approved education goods
23	23	and services.
24	24	This bill would prohibit a program manager from
25	25	accepting scholarship funds in certain circumstances
26	26	and would require other fiscal safeguards, auditing,
27	27	and accountability measures.
28	28	This bill would require eligible schools and
29	29	service providers to meet certain standards to be
30	30	eligible to receive scholarship funds and would
31	31	establish an annual and private portfolio submission to
32	32	the program manager as an eligibility qualification.
33	33	This bill would authorize the program manager to
34	34	administer the program and distribute scholarship funds
35	35	and would require the State Board of Education to
36	36	provide limited oversight of the program manager,
37	37	including an appeal process for the program manager's
38	38	administrative decisions.
39	39	This bill would require criminal history
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69	69	background information checks for employees and
70	70	officers of a program manager, would provide for
71	71	program funding, and would also require the program
72	72	manager and the State Board of Education to submit
73	73	reports on the program to the Legislature.
74	74	A BILL
75	75	TO BE ENTITLED
76	76	AN ACT
77	77	To create the Alabama Fits All Scholarship Program;
78	78	require the State Board of Education to contract with a
79	79	program manager to administer the program; to authorize the
80	80	program manager to establish scholarship accounts on behalf of
81	81	eligible students; to prohibit a program manager from
82	82	accepting scholarship funds in certain circumstances; to
83	83	require fiscal safeguards and accountability measures; to
84	84	require eligible schools and service providers to meet certain
85	85	standards to be eligible to receive scholarship funds; to
86	86	authorize the program manager to distribute scholarship funds;
87	87	to require the State Board of Education to provide limited
88	88	oversight of the program manager, including an appeal process
89	89	for the program manager's administrative decisions; to
90	90	prohibit certain regulations of eligible schools and eligible
91	91	service providers; to require criminal history background
92	92	information checks for employees and officers of a program
93	93	manager; to provide for program funding; and to require the
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123	123	program manager and the board to submit reports on the program
124	124	to the Legislature.
125	125	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
126	126	Section 1. This act shall be known and may be cited as
127	127	the Alabama Fits All Scholarship Program.
128	128	Section 2. For the purposes of this act, the following
129	129	terms shall have the following meanings:
130	130	(1) ELIGIBLE STUDENT. A student who satisfies all of
131	131	the following:
132	132	a. Who is eligible to participate in public school in
133	133	grades K-12.
134	134	b. Who is a resident of this state.
135	135	c. Who, during the school year for which the student is
136	136	applying for a scholarship account, does not receive a
137	137	scholarship under the Alabama Accountability Act of 2013,
138	138	Chapter 6D of Title 16, Code of Alabama 1975, or under any
139	139	other similar educational scholarship program available for
140	140	students in grades K-12.
141	141	d. Who, during the school year for which the student is
142	142	applying for a scholarship account, is not enrolled in a
143	143	public school upon receiving the scholarship.
144	144	e. Whose eligibility is not suspended or disqualified
145	145	under Section 6.
146	146	f. Who completes, to maintain eligibility, the
147	147	portfolio requirement described in subdivision (c)(4) of
148	148	Section 3.
149	149	(2) FEDERAL POVERTY LEVEL. The United States poverty
150	150	level as defined by the most recently revised poverty income
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180	180	guidelines published by the United States Department of Health
181	181	and Human Services in the Federal Register.
182	182	(3) HOME-BASED SCHOLARSHIP STUDENT. A student who is
183	183	homeschooled and receives a scholarship under the program.
184	184	(4) NONPUBLIC SCHOOL. A nongovernment K-12 school
185	185	offering educational instruction. The term includes private
186	186	(religious and nonreligious), parochial, and church schools,
187	187	including home-based education programs.
188	188	(5) PROGRAM. The Alabama Fits All Scholarship Program
189	189	established by this act.
190	190	(6) PROGRAM MANAGER. An organization that satisfies all
191	191	of the following:
192	192	a. Is qualified as tax exempt under Section 501(c)(3),
193	193	Internal Revenue Code.
194	194	b. Is not affiliated with any international
195	195	organization.
196	196	c. Does not harvest data for the purpose of reproducing
197	197	or distributing the data to other entities.
198	198	d. Has no involvement in guiding or directing any
199	199	curriculum or curriculum standards.
200	200	e. Does not manage or otherwise administer a
201	201	scholarship under the Alabama Accountability Act of 2013,
202	202	Chapter 6D of Title 16, Code of Alabama 1975.
203	203	f. Has an agreement with the State Board of Education
204	204	that recognizes the organization as a program manager, in
205	205	accordance with this act.
206	206	(7) PROGRAM MANAGER EMPLOYEE. An individual working for
207	207	the program manager in a position in which the individual's
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237	237	salary, wages, pay, or compensation, including as a
238	238	contractor, is paid from scholarship funds. The term does not
239	239	include any of the following:
240	240	a. An individual who volunteers for the program manager
241	241	or for a qualifying provider.
242	242	b. An individual who works for a qualifying provider.
243	243	c. A qualifying provider.
244	244	(8) PROGRAM MANAGER OFFICER. A member of the board of a
245	245	program manager or the chief administrative officer of a
246	246	program manager.
247	247	(9) QUALIFYING PROVIDER. One of the following entities
248	248	that is not a public school and is autonomous and not an agent
249	249	of the state, in accordance with Section 7:
250	250	a. An eligible school that the program manager approves
251	251	in accordance with Section 9.
252	252	b. An eligible service provider that the program
253	253	manager approves in accordance with Section 10.
254	254	(10) RELATIVE. A father, mother, husband, wife, son,
255	255	daughter, sister, brother, uncle, aunt, nephew, niece, first
256	256	cousin, mother-in-law, father-in-law, brother-in-law,
257	257	sister-in-law, son-in-law, or daughter-in-law.
258	258	(11) SCHOLARSHIP ACCOUNT. The account to which a
259	259	program manager allocates funds for the payment of approved
260	260	scholarship expenses in accordance with this act.
261	261	(12) SCHOLARSHIP EXPENSE. An expense described in
262	262	Section 3 that a parent or scholarship student incurs in the
263	263	education of the scholarship student for a service or goods
264	264	that a qualifying provider provides, including all of the
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294	294	following:
295	295	a. Tuition and fees of a qualifying provider.
296	296	b. Fees and instructional materials at a college under
297	297	the jurisdiction of the Alabama Community College System.
298	298	c. Tutoring services.
299	299	d. Fees for after-school or summer education programs.
300	300	e. Textbooks, curricula, or other instructional
301	301	materials, including any supplemental materials or associated
302	302	online instruction that a curriculum or a qualifying provider
303	303	recommends.
304	304	f. Educational software and applications.
305	305	g. Supplies or other equipment related to a scholarship
306	306	student's educational needs.
307	307	h. Computer hardware or other technological devices
308	308	that are intended primarily for a scholarship student's
309	309	educational needs.
310	310	i. Fees for the following examinations, or for a
311	311	preparation course for the following examinations, that the
312	312	program manager approves:
313	313	1. A national norm-referenced or standardized
314	314	assessment described in Section 11, an advanced placement
315	315	examination, or another similar assessment.
316	316	2. A state-recognized industry certification
317	317	examination.
318	318	3. An examination related to college or university
319	319	admission.
320	320	j. Educational services for students with disabilities
321	321	from a licensed or accredited practitioner or provider,
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351	351	including occupational, behavioral, physical, audiology, or
352	352	speech-language therapies.
353	353	k. Contracted services that the program manager
354	354	approves and that a local school system provides, including
355	355	individual classes, after-school tutoring services,
356	356	transportation, or fees or costs associated with participation
357	357	in extracurricular activities.
358	358	l. Ride fees or fares for a fee-for-service
359	359	transportation provider to transport the scholarship student
360	360	to and from a qualifying provider, not to exceed seven hundred
361	361	fifty dollars ($750) in a given school year.
362	362	m. Expenses related to extracurricular activities,
363	363	field trips, educational supplements, and other educational
364	364	experiences.
365	365	n. Any other expense for a good or service that
366	366	satisfies both of the following:
367	367	1. A parent or scholarship student incurs in the
368	368	education of the scholarship student.
369	369	2. The program manager approves.
370	370	(13) SCHOLARSHIP FUNDS. Both of the following:
371	371	a. Funds that the Legislature appropriates for the
372	372	program.
373	373	b. Interest that scholarship funds accrue.
374	374	(14) SCHOLARSHIP STUDENT. An eligible student,
375	375	including a home-based scholarship student, for whom the
376	376	program manager establishes and maintains a scholarship
377	377	account in accordance with this act. The term does not include
378	378	a homeschooled student who does not receive a scholarship
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408	408	award under the program.
409	409	Section 3. (a) There is established the Alabama Fits
410	410	All Scholarship Program under which, beginning March 1, 2024,
411	411	a parent may apply to a program manager on behalf of the
412	412	parent's student to establish and maintain a scholarship
413	413	account to cover the cost of a scholarship expense. The amount
414	414	of scholarship funds available is subject to appropriations by
415	415	the Legislature and may not exceed forty-five million dollars
416	416	($45,000,000) in the initial year.
417	417	(b)(1) The program manager shall establish and
418	418	maintain, in accordance with this act, scholarship accounts
419	419	for eligible students.
420	420	(2) The program manager shall do both of the following:
421	421	a. Determine that a student meets the requirements to
422	422	be an eligible student.
423	423	b. Subject to subdivision (3), each year the student is
424	424	an eligible student, maintain a scholarship account for the
425	425	scholarship student to pay for the cost of one or more
426	426	scholarship expenses that the student or student's parent
427	427	incurs in the student's education.
428	428	(3) Each year, subject to this act and legislative
429	429	appropriations, a scholarship student is eligible for no more
430	430	than:
431	431	a. For the 2024-2025 school year, six thousand nine
432	432	hundred dollars ($6,900).
433	433	b. For each school year following the 2024-2025 school
434	434	year, the maximum allowed amount under this subdivision in the
435	435	previous year plus a percentage increase that is equal to the
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465	465	five-year rolling average inflationary factor described in
466	466	Section 6.
467	467	(c)(1) A program manager shall establish a scholarship
468	468	account on behalf of an eligible student who submits a timely
469	469	application, unless the number of applications exceeds
470	470	available scholarship funds for the school year.
471	471	(2) If the number of applications exceeds the available
472	472	scholarship funds for a school year, the program manager shall
473	473	select students on a random basis, except as provided in
474	474	subsection (f).
475	475	(3) An eligible student or a public education student
476	476	shall submit an application for an initial scholarship or
477	477	renewal for each school year that the student intends to
478	478	receive scholarship funds.
479	479	(4)a. To maintain eligibility, the scholarship student
480	480	or the parent of the scholarship student shall annually
481	481	complete and deliver to the program manager a portfolio
482	482	describing the scholarship student's educational opportunities
483	483	and achievements under the program for the given year.
484	484	b. The program manager may not disclose the content of
485	485	a given scholarship student's portfolio except to the
486	486	scholarship student's parent.
487	487	(5) An eligible student who has applied for an
488	488	educational scholarship under the Alabama Accountability Act
489	489	of 2013, Chapter 6D of Title 16, Code of Alabama 1975, or any
490	490	other similar educational scholarship program available for
491	491	students in grades K-12, and who is wait listed or otherwise
492	492	not approved for participation in those programs, may apply
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522	522	for a scholarship account under this program.
523	523	(d)(1) An application for a scholarship account shall
524	524	contain an acknowledgment by the student's parent that the
525	525	qualifying provider selected by the parent for the student's
526	526	enrollment or engagement is capable of providing education
527	527	services for the student.
528	528	(2) A scholarship account application form shall
529	529	contain the following statement: "I acknowledge all of the
530	530	following:
531	531	"a. A qualifying provider may not provide the same
532	532	level of disability services that are provided in a public
533	533	school.
534	534	"b. I will assume full financial responsibility for the
535	535	education of my scholarship recipient if I agree to this
536	536	scholarship account.
537	537	"c. Agreeing to establish this scholarship account has
538	538	the same effect as a parental refusal to consent to services
539	539	as described in 34 C.F.R. §300.300, issued under the
540	540	Individuals with Disabilities Education Act, 20 U.S.C. §1400,
541	541	et seq.
542	542	"d. My child may return to a public school at any
543	543	time."
544	544	(3) Upon agreeing to establish a scholarship account,
545	545	the parent assumes full financial responsibility for the
546	546	education of the scholarship student, including the balance of
547	547	any expense incurred at a qualifying provider or for goods
548	548	that are not paid for by the scholarship student's scholarship
549	549	account.
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579	579	(4) Agreeing to establish a scholarship account has the
580	580	same effect as a parental refusal to consent to services as
581	581	described in 34 C.F.R. §300.300, issued under the Individuals
582	582	with Disabilities Education Act, 20 U.S.C. §1400, et seq.
583	583	(5) The creation of the program or establishment of a
584	584	scholarship account on behalf of a student does not do either
585	585	of the following:
586	586	a. Imply that a public school did not provide a free
587	587	and appropriate public education for a student.
588	588	b. Constitute a waiver or admission by the state.
589	589	(e) A program manager may not charge a scholarship
590	590	account application fee.
591	591	(f) A program manager shall give an enrollment
592	592	preference based on the following order of preference:
593	593	(1) To an eligible student who used a scholarship
594	594	account in the previous school year.
595	595	(2) To an eligible student who did not use a
596	596	scholarship account in the previous school year and with a
597	597	family income at or below 200 percent of the federal poverty
598	598	level.
599	599	(3) To an eligible student who is a sibling of an
600	600	eligible student who uses a scholarship account at the time
601	601	the sibling applies for a scholarship account or used a
602	602	scholarship account in the school year immediately preceding
603	603	the school year for which the sibling is applying for a
604	604	scholarship account.
605	605	(4) To an eligible student who did not use a
606	606	scholarship account in the previous school year and with a
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636	636	family income between 200 percent and 555 percent of the
637	637	federal poverty level.
638	638	(g)(1) Subject to subdivisions (2) through (5), a
639	639	parent may use a scholarship account to pay for a scholarship
640	640	expense that a parent or scholarship student incurs in the
641	641	education of the scholarship student.
642	642	(2) A scholarship student or the scholarship student's
643	643	parent may not use a scholarship account for an expense that
644	644	the student or parent does not incur in the education of the
645	645	scholarship student, including either of the following:
646	646	a. A rehabilitation program that is not primarily
647	647	designed for an educational purpose.
648	648	b. A travel expense other than a transportation
649	649	scholarship expense described paragraph (12)l. of Section 2.
650	650	(3) The program manager may not do either of the
651	651	following:
652	652	a. Approve a scholarship expense for a service that a
653	653	qualifying provider provides unless the program manager
654	654	determines that the scholarship student or the scholarship
655	655	student's parent incurred the expense in the education of the
656	656	scholarship student.
657	657	b. Reimburse a scholarship expense for a service or
658	658	good that a provider, that is not a qualifying provider,
659	659	provides unless both of the following are satisfied:
660	660	1. The parent or scholarship student submits a receipt
661	661	that shows the cost and type of service or good and the name
662	662	of the provider.
663	663	2. The program manager determines that the parent or
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693	693	scholarship student incurred the expense in the education of
694	694	the scholarship student.
695	695	(4) The parent of a scholarship student may not receive
696	696	scholarship funds as payment for the parent's time spent
697	697	educating the parent's child.
698	698	(5) Except for cases in which a scholarship student or
699	699	the scholarship student's parent is convicted of fraud in
700	700	relation to scholarship funds, if a qualifying provider,
701	701	scholarship student, or scholarship student's parent repays an
702	702	expenditure from a scholarship account for an expense that is
703	703	not approved under this subsection, the program manager shall
704	704	credit the repaid amount back to the scholarship account
705	705	balance within 30 days after the day on which the program
706	706	manager receives the repayment.
707	707	(h) Notwithstanding any other provision of law, funds
708	708	that the program manager disburses under this act to a
709	709	scholarship account on behalf of a scholarship student do not
710	710	constitute state taxable income to the parent of the
711	711	scholarship student.
712	712	(i) The program manager shall prepare and disseminate
713	713	information on the program to a parent applying for a
714	714	scholarship account on behalf of a student, including the
715	715	information that the program manager provides in accordance
716	716	with Section 6.
717	717	(j) On or before September 1, 2023, and as frequently
718	718	as necessary to maintain the information, the State Board of
719	719	Education shall provide information on the website of the
720	720	State Board of Education, including all of the following:
721	721	337
722	722	338
723	723	339
724	724	340
725	725	341
726	726	342
727	727	343
728	728	344
729	729	345
730	730	346
731	731	347
732	732	348
733	733	349
734	734	350
735	735	351
736	736	352
737	737	353
738	738	354
739	739	355
740	740	356
741	741	357
742	742	358
743	743	359
744	744	360
745	745	361
746	746	362
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750	750	(1) Scholarship account information.
751	751	(2) Information on the program manager, including the
752	752	program manager's contact information.
753	753	(3) An overview of the program.
754	754	Section 4. (a) Before the beginning of the school year
755	755	immediately following a school year in which a qualifying
756	756	provider receives scholarship funds equal to or more than five
757	757	hundred thousand dollars ($500,000), the qualifying provider
758	758	shall file with the program manager a surety bond payable to
759	759	the program manager in an amount equal to the aggregate amount
760	760	of scholarship funds expected to be received during the school
761	761	year.
762	762	(b) If a program manager determines that a qualifying
763	763	provider has violated this act, the program manager may
764	764	interrupt disbursement of or withhold scholarship funds from
765	765	the qualifying provider.
766	766	(c)(1) If the program manager determines that a
767	767	qualifying provider no longer meets the eligibility
768	768	requirements described in this act, the program manager may
769	769	withdraw the organization's approval of the qualifying
770	770	provider.
771	771	(2) A provider or individual that does not have the
772	772	approval of the program manager in accordance with either of
773	773	the following may not accept scholarship funds for services
774	774	under this act:
775	775	a. Section 9, regarding eligible schools.
776	776	b. Section 10, regarding eligible service providers.
777	777	(d) If a qualifying provider requires partial payment
778	778	365
779	779	366
780	780	367
781	781	368
782	782	369
783	783	370
784	784	371
785	785	372
786	786	373
787	787	374
788	788	375
789	789	376
790	790	377
791	791	378
792	792	379
793	793	380
794	794	381
795	795	382
796	796	383
797	797	384
798	798	385
799	799	386
800	800	387
801	801	388
802	802	389
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807	807	of tuition or fees before the beginning of the academic year
808	808	to reserve space for a scholarship student who has been
809	809	admitted to the qualifying provider, the program manager may
810	810	do both of the following:
811	811	(1) Pay the partial payment before the beginning of the
812	812	school year in which the scholarship funds are awarded.
813	813	(2) Deduct the amount of the partial payment from
814	814	subsequent scholarship fund deposits in an equitable manner
815	815	that provides the best availability of scholarship funds to
816	816	the student throughout the remainder of the school year.
817	817	(e) If a scholarship student described in subdivision
818	818	(d)(1) chooses to withdraw from or otherwise not engage with
819	819	the qualifying provider before the beginning of the school
820	820	year:
821	821	(1) The qualifying provider shall remit the partial
822	822	payment described in subdivision (d)(1) to the program
823	823	manager; and
824	824	(2) The program manager shall credit the remitted
825	825	partial payment to the scholarship student's scholarship
826	826	account.
827	827	Section 5. (a)(1) In accordance with Article 5,
828	828	commencing with Section 41-4-110, of Chapter 4 of Title 41,
829	829	the State Board of Education shall issue a request for
830	830	proposals, on or before June 15, 2023, and enter an agreement
831	831	with no more than one organization that qualifies as tax
832	832	exempt under Section 501(c)(3), Internal Revenue Code, for the
833	833	State Board of Education to recognize as the program manager,
834	834	on or before September 1, 2023.
835	835	393
836	836	394
837	837	395
838	838	396
839	839	397
840	840	398
841	841	399
842	842	400
843	843	401
844	844	402
845	845	403
846	846	404
847	847	405
848	848	406
849	849	407
850	850	408
851	851	409
852	852	410
853	853	411
854	854	412
855	855	413
856	856	414
857	857	415
858	858	416
859	859	417
860	860	418
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864	864	(2) An organization that responds to a request for
865	865	proposals described in subdivision (1) shall submit all of the
866	866	following information in the organization's response:
867	867	a. A copy of the organization's incorporation
868	868	documents.
869	869	b. A copy of the organization's Internal Revenue
870	870	Service determination letter qualifying the organization as
871	871	being tax exempt under Section 501(c)(3), Internal Revenue
872	872	Code.
873	873	c. A description of the methodology the organization
874	874	shall use to verify a student's eligibility under this act.
875	875	d. A description of the organization's proposed
876	876	scholarship account application process.
877	877	e. An affidavit or other evidence that the organization
878	878	satisfies all of the following:
879	879	1. Is not affiliated with any international
880	880	organization.
881	881	2. Does not harvest data for the purpose of reproducing
882	882	or distributing the data to another entity.
883	883	3. Has no involvement in guiding or directing any
884	884	curriculum standards.
885	885	(3) The State Board of Education shall ensure that the
886	886	agreement described in subdivision (1) satisfies all of the
887	887	following:
888	888	a. Ensures the efficiency and success of the program.
889	889	b. Does not impose any requirements on the program
890	890	manager that satisfy either of the following:
891	891	1. Are not essential to the basic administration of the
892	892	421
893	893	422
894	894	423
895	895	424
896	896	425
897	897	426
898	898	427
899	899	428
900	900	429
901	901	430
902	902	431
903	903	432
904	904	433
905	905	434
906	906	435
907	907	436
908	908	437
909	909	438
910	910	439
911	911	440
912	912	441
913	913	442
914	914	443
915	915	444
916	916	445
917	917	446
918	918	447
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920	920	Page 17
921	921	program.
922	922	2. Create restrictions, directions, or mandates
923	923	regarding instructional content or curriculum.
924	924	(b) The State Board of Education may regulate and take
925	925	enforcement action as necessary against a program manager in
926	926	accordance with the State Board of Education's agreement with
927	927	the program manager.
928	928	(c)(1) If the State Board of Education determines that
929	929	a program manager has violated this act or the State Board of
930	930	Education's agreement with the program manager, the State
931	931	Board of Education shall send written notice to the program
932	932	manager explaining the violation and the remedial action
933	933	required to correct the violation.
934	934	(2) A program manager that receives a notice described
935	935	in subdivision (1), no later than 60 days after the day on
936	936	which the program manager receives the notice, shall correct
937	937	the violation and report the correction to the State Board of
938	938	Education.
939	939	(3)a. If a program manager that receives a notice
940	940	described in subdivision (1) fails to correct a violation in
941	941	the time period described in subdivision (2), the State Board
942	942	of Education may bar the program manager from further
943	943	participation in the program.
944	944	b. A program manager may appeal a decision of the State
945	945	Board of Education under paragraph a. in accordance with the
946	946	Alabama Administrative Procedures Act.
947	947	(4) A program manager may not accept state funds while
948	948	the program manager satisfies either of the following:
949	949	449
950	950	450
951	951	451
952	952	452
953	953	453
954	954	454
955	955	455
956	956	456
957	957	457
958	958	458
959	959	459
960	960	460
961	961	461
962	962	462
963	963	463
964	964	464
965	965	465
966	966	466
967	967	467
968	968	468
969	969	469
970	970	470
971	971	471
972	972	472
973	973	473
974	974	474
975	975	475
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977	977	Page 18
978	978	a. Is barred from participating in the program under
979	979	paragraph (3)a.
980	980	b. Has an appeal pending under paragraph (3)b.
981	981	(5) A program manager that has an appeal pending under
982	982	paragraph (3)b. may continue to administer scholarship
983	983	accounts during the pending appeal.
984	984	(d) The State Board of Education shall establish a
985	985	process for a program manager to report the information the
986	986	program manager is required to report to the State Board of
987	987	Education under Section 6.
988	988	(e) The State Board of Education shall adopt rules
989	989	pursuant to the Alabama Administrative Procedures Act, and
990	990	include provisions in the State Board of Education's agreement
991	991	with the scholarship organization for either of the following:
992	992	(1) Subject to subsection (f), the administration of
993	993	scholarship accounts and disbursement of scholarship funds if
994	994	a program manager is barred from participating in the program
995	995	under paragraph (c)(3)a.
996	996	(2) Audit and report requirements as described in
997	997	Section 6.
998	998	(f)(1) The State Board of Education shall include in
999	999	the rules described in subdivision (e)(1) measures to ensure
1000	1000	that the establishment and maintenance of scholarship accounts
1001	1001	and enrollment in the program are not disrupted if the program
1002	1002	manager is barred from participating in the program.
1003	1003	(2) The State Board of Education, if the program
1004	1004	manager is barred from participating in the program, may issue
1005	1005	a new request for proposals and enter into a new agreement
1006	1006	477
1007	1007	478
1008	1008	479
1009	1009	480
1010	1010	481
1011	1011	482
1012	1012	483
1013	1013	484
1014	1014	485
1015	1015	486
1016	1016	487
1017	1017	488
1018	1018	489
1019	1019	490
1020	1020	491
1021	1021	492
1022	1022	493
1023	1023	494
1024	1024	495
1025	1025	496
1026	1026	497
1027	1027	498
1028	1028	499
1029	1029	500
1030	1030	501
1031	1031	502
1032	1032	503
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1034	1034	Page 19
1035	1035	with an alternative program manager in accordance with this
1036	1036	section.
1037	1037	(g)(1) On or before January 1, 2024, the State Board of
1038	1038	Education shall do all of the following:
1039	1039	a. Adopt rules, in accordance with the Alabama
1040	1040	Administrative Procedures Act, to establish a process for a
1041	1041	scholarship student or a scholarship student's parent to
1042	1042	appeal any administrative decision of the program manager for
1043	1043	State Board of Education resolution within 30 days after the
1044	1044	day of the appeal, including both of the following:
1045	1045	1. Scholarship expense denials.
1046	1046	2. Determinations regarding enrollment eligibility or
1047	1047	suspension or disqualification under Section 6.
1048	1048	b. Make information available regarding the appeals
1049	1049	process on the State Board of Education's website and on the
1050	1050	scholarship application.
1051	1051	(2) If the State Board of Education stays or reverses
1052	1052	an administrative decision of the program manager on appeal,
1053	1053	the program manager may not withhold scholarship funds or
1054	1054	application approval for the scholarship student on account of
1055	1055	the appealed administrative decision unless as the State Board
1056	1056	of Education expressly allows.
1057	1057	(h) The State Board of Education may not include a
1058	1058	provision in any rule that creates or implies a restriction,
1059	1059	direction, or mandate regarding instructional content or
1060	1060	curriculum.
1061	1061	Section 6. (a) The program manager shall administer the
1062	1062	program, including all of the following administrative duties:
1063	1063	505
1064	1064	506
1065	1065	507
1066	1066	508
1067	1067	509
1068	1068	510
1069	1069	511
1070	1070	512
1071	1071	513
1072	1072	514
1073	1073	515
1074	1074	516
1075	1075	517
1076	1076	518
1077	1077	519
1078	1078	520
1079	1079	521
1080	1080	522
1081	1081	523
1082	1082	524
1083	1083	525
1084	1084	526
1085	1085	527
1086	1086	528
1087	1087	529
1088	1088	530
1089	1089	531
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1091	1091	Page 20
1092	1092	(1) Maintaining an application website that includes
1093	1093	information on enrollment, relevant application dates, and
1094	1094	dates for notification of acceptance.
1095	1095	(2) Reviewing applications from and determining if an
1096	1096	applicant is either of the following:
1097	1097	a. An eligible school under Section 9.
1098	1098	b. An eligible service provider under Section 10.
1099	1099	(3) Establishing an application process, including
1100	1100	application dates opening before March 1, 2024, in accordance
1101	1101	with Section 3.
1102	1102	(4) Reviewing and granting or denying applications for
1103	1103	a scholarship account.
1104	1104	(5) Providing an online portal for the parent of a
1105	1105	scholarship student to access the scholarship student's
1106	1106	account.
1107	1107	(6) Ensuring that scholarship funds in a scholarship
1108	1108	account are readily available to a scholarship student.
1109	1109	(7) Requiring a parent to notify the program manager if
1110	1110	the parent's scholarship student is no longer enrolled in or
1111	1111	engaging in a service for which the scholarship student
1112	1112	receives scholarship funds and that is provided to the
1113	1113	scholarship student for an entire school year.
1114	1114	(8) Obtaining reimbursement of scholarship funds from a
1115	1115	qualifying provider that provides the services in which a
1116	1116	scholarship student is no longer enrolled or with which the
1117	1117	scholarship student is no longer engaged.
1118	1118	(9) Expending all revenue from interest on scholarship
1119	1119	funds or investments on scholarship expenses.
1120	1120	533
1121	1121	534
1122	1122	535
1123	1123	536
1124	1124	537
1125	1125	538
1126	1126	539
1127	1127	540
1128	1128	541
1129	1129	542
1130	1130	543
1131	1131	544
1132	1132	545
1133	1133	546
1134	1134	547
1135	1135	548
1136	1136	549
1137	1137	550
1138	1138	551
1139	1139	552
1140	1140	553
1141	1141	554
1142	1142	555
1143	1143	556
1144	1144	557
1145	1145	558
1146	1146	559
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1148	1148	Page 21
1149	1149	(10) Each time the program manager makes an
1150	1150	administrative decision that is adverse to a scholarship
1151	1151	student or the scholarship student's parent, informing the
1152	1152	scholarship student and the scholarship student's parent of
1153	1153	the opportunity and process to appeal an administrative
1154	1154	decision of the program manager to the State Board of
1155	1155	Education in accordance with the process described in Section
1156	1156	5.
1157	1157	(11) Maintaining a protected internal wait list of all
1158	1158	eligible students who have applied to the program and are not
1159	1159	yet scholarship students, including any student who removed
1160	1160	his or her application from the wait list.
1161	1161	(12) Providing aggregate data regarding the number of
1162	1162	scholarship students and the number of eligible students on
1163	1163	the wait list described in subdivision (11).
1164	1164	(b) The program manager shall do all of the following:
1165	1165	(1) Contract with one or more private entities to
1166	1166	develop and implement a commercially viable, cost-effective,
1167	1167	and parent-friendly system to do all of the following:
1168	1168	a. Establish scholarship accounts.
1169	1169	b. Maximize payment flexibility by allowing all of the
1170	1170	following:
1171	1171	1. For payment of services to qualifying providers
1172	1172	using scholarship funds by electronic or online funds
1173	1173	transfer.
1174	1174	2. Preapproval of a reimbursement to a parent for a
1175	1175	good that is a scholarship expense.
1176	1176	c. Allow scholarship students and scholarship student's
1177	1177	561
1178	1178	562
1179	1179	563
1180	1180	564
1181	1181	565
1182	1182	566
1183	1183	567
1184	1184	568
1185	1185	569
1186	1186	570
1187	1187	571
1188	1188	572
1189	1189	573
1190	1190	574
1191	1191	575
1192	1192	576
1193	1193	577
1194	1194	578
1195	1195	579
1196	1196	580
1197	1197	581
1198	1198	582
1199	1199	583
1200	1200	584
1201	1201	585
1202	1202	586
1203	1203	587
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1205	1205	Page 22
1206	1206	parents to publicly rate, review, and share information about
1207	1207	qualifying providers.
1208	1208	(2) Ensure that the system complies with industry
1209	1209	standards for data privacy and cybersecurity, including
1210	1210	ensuring compliance with the Family Educational Rights and
1211	1211	Privacy Act, 34 C.F.R. Part 99.
1212	1212	(c) In advance of the program manager accepting
1213	1213	applications in accordance with Section 3 and as regularly as
1214	1214	information develops, the program manager shall provide
1215	1215	information regarding the program by publishing a program
1216	1216	handbook online for scholarship applicants, scholarship
1217	1217	students, parents, service providers seeking to become
1218	1218	qualifying providers, and qualifying providers that includes
1219	1219	information regarding all of the following:
1220	1220	(1) The policies and processes of the program.
1221	1221	(2) Approved scholarship expenses and qualifying
1222	1222	providers.
1223	1223	(3) The responsibilities of parents regarding the
1224	1224	program and scholarship funds.
1225	1225	(4) The duties of the program manager.
1226	1226	(5) The opportunity and process to appeal an
1227	1227	administrative decision of the program manager to the State
1228	1228	Board of Education in accordance with the process described in
1229	1229	Section 5.
1230	1230	(6) The role of any private financial management firms
1231	1231	or other private organizations with which the program manager
1232	1232	may contract to administer any aspect of the program.
1233	1233	(d) To ensure the fiscal security and compliance of the
1234	1234	589
1235	1235	590
1236	1236	591
1237	1237	592
1238	1238	593
1239	1239	594
1240	1240	595
1241	1241	596
1242	1242	597
1243	1243	598
1244	1244	599
1245	1245	600
1246	1246	601
1247	1247	602
1248	1248	603
1249	1249	604
1250	1250	605
1251	1251	606
1252	1252	607
1253	1253	608
1254	1254	609
1255	1255	610
1256	1256	611
1257	1257	612
1258	1258	613
1259	1259	614
1260	1260	615
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1262	1262	Page 23
1263	1263	program, the program manager shall do all of the following:
1264	1264	(1) Prohibit a program manager employee or program
1265	1265	manager officer from handling, managing, or processing
1266	1266	scholarship funds, if, based on a criminal history background
1267	1267	information check conducted in accordance with Section 8, the
1268	1268	State Board of Education identifies the program manager
1269	1269	employee or program manager officer as posing a risk to the
1270	1270	appropriate use of scholarship funds.
1271	1271	(2) Establish procedures to ensure a fair process to do
1272	1272	any of the following:
1273	1273	a. Suspend a scholarship student's eligibility for the
1274	1274	program in the event of the scholarship student's or
1275	1275	scholarship student's parent's:
1276	1276	1. Intentional or substantial misuse of scholarship
1277	1277	funds; or
1278	1278	2. Violation of this act or the terms of the program.
1279	1279	b. If the program manager obtains evidence of
1280	1280	fraudulent use of scholarship funds, refer the case to the
1281	1281	Attorney General for collection or criminal investigation.
1282	1282	c. Ensure that a scholarship student whose eligibility
1283	1283	is suspended or disqualified under this subdivision or
1284	1284	subdivision (3) based on the actions of the student's parent
1285	1285	regains eligibility if the student is placed with a different
1286	1286	parent or otherwise no longer resides with the parent related
1287	1287	to the suspension or disqualification.
1288	1288	(3) Notify the State Board of Education, scholarship
1289	1289	student, and scholarship student's parent in writing of all of
1290	1290	the following:
1291	1291	617
1292	1292	618
1293	1293	619
1294	1294	620
1295	1295	621
1296	1296	622
1297	1297	623
1298	1298	624
1299	1299	625
1300	1300	626
1301	1301	627
1302	1302	628
1303	1303	629
1304	1304	630
1305	1305	631
1306	1306	632
1307	1307	633
1308	1308	634
1309	1309	635
1310	1310	636
1311	1311	637
1312	1312	638
1313	1313	639
1314	1314	640
1315	1315	641
1316	1316	642
1317	1317	643
1318	1318	644 HB442 INTRODUCEDHB442 INTRODUCED
1319	1319	Page 24
1320	1320	a. Of the suspension described in paragraph (2)a.
1321	1321	b. That no further transactions, disbursements, or
1322	1322	reimbursements are allowed.
1323	1323	c. That the scholarship student or scholarship
1324	1324	student's parent may take corrective action within 10 business
1325	1325	days of the day on which the program manager provides the
1326	1326	notification.
1327	1327	d. That without taking the corrective action within the
1328	1328	time period described in paragraph (3)c., the program manager
1329	1329	may disqualify the student's eligibility.
1330	1330	(e)(1) A program manager may not do either of the
1331	1331	following:
1332	1332	a. Disburse scholarship funds to a qualifying provider
1333	1333	or allow a qualifying provider to use scholarship funds if any
1334	1334	of the following occur:
1335	1335	1. The program manager determines that the qualifying
1336	1336	provider intentionally or substantially misrepresented
1337	1337	information on overpayment.
1338	1338	2. The qualifying provider fails to refund an
1339	1339	overpayment in a timely manner.
1340	1340	3. The qualifying provider routinely fails to provide
1341	1341	scholarship students with promised educational services.
1342	1342	b. Reimburse with scholarship funds an individual for
1343	1343	the purchase of a good or service if the program manager
1344	1344	determines that either of the following have occurred:
1345	1345	1. The scholarship student or the scholarship student's
1346	1346	parent requesting reimbursement intentionally or substantially
1347	1347	misrepresented the cost or educational purpose of the good or
1348	1348	645
1349	1349	646
1350	1350	647
1351	1351	648
1352	1352	649
1353	1353	650
1354	1354	651
1355	1355	652
1356	1356	653
1357	1357	654
1358	1358	655
1359	1359	656
1360	1360	657
1361	1361	658
1362	1362	659
1363	1363	660
1364	1364	661
1365	1365	662
1366	1366	663
1367	1367	664
1368	1368	665
1369	1369	666
1370	1370	667
1371	1371	668
1372	1372	669
1373	1373	670
1374	1374	671
1375	1375	672 HB442 INTRODUCEDHB442 INTRODUCED
1376	1376	Page 25
1377	1377	service.
1378	1378	2. The relevant scholarship student was not the
1379	1379	exclusive user of the good or service.
1380	1380	(2) A program manager shall notify a scholarship
1381	1381	student if the program manager does either of the following:
1382	1382	a. Stops disbursement of the scholarship student's
1383	1383	scholarship funds to a qualifying provider under paragraph
1384	1384	(1)a.
1385	1385	b. Refuses reimbursement under paragraph (1)b.
1386	1386	(f)(1) At any time, a scholarship student may change
1387	1387	the qualifying provider to which the scholarship student's
1388	1388	scholarship account makes distributions.
1389	1389	(2) If, during the school year, a scholarship student
1390	1390	changes the student's enrollment in or engagement with a
1391	1391	qualifying provider to another qualifying provider, the
1392	1392	program manager may prorate scholarship funds between the
1393	1393	qualifying providers based on the time the scholarship student
1394	1394	received the goods or services or was enrolled.
1395	1395	(g) A program manager may not subvert the enrollment
1396	1396	preferences required under Section 3 or other provisions of
1397	1397	this act to establish a scholarship account on behalf of a
1398	1398	relative of a program manager officer.
1399	1399	(h) The program manager shall do all of the following:
1400	1400	(1) Contract for annual and random audits on
1401	1401	scholarship accounts conducted as follows:
1402	1402	a. By a certified public accountant who is independent
1403	1403	from all of the following:
1404	1404	1. The program manager.
1405	1405	673
1406	1406	674
1407	1407	675
1408	1408	676
1409	1409	677
1410	1410	678
1411	1411	679
1412	1412	680
1413	1413	681
1414	1414	682
1415	1415	683
1416	1416	684
1417	1417	685
1418	1418	686
1419	1419	687
1420	1420	688
1421	1421	689
1422	1422	690
1423	1423	691
1424	1424	692
1425	1425	693
1426	1426	694
1427	1427	695
1428	1428	696
1429	1429	697
1430	1430	698
1431	1431	699
1432	1432	700 HB442 INTRODUCEDHB442 INTRODUCED
1433	1433	Page 26
1434	1434	2. The State Board of Education.
1435	1435	3. The program manager's accounts and records
1436	1436	pertaining to scholarship funds.
1437	1437	b. In accordance with generally accepted auditing
1438	1438	standards.
1439	1439	(2) Demonstrate the program manager's financial
1440	1440	accountability by annually submitting to the State Board of
1441	1441	Education all of the following:
1442	1442	a. A financial information report that a certified
1443	1443	public accountant prepares and that includes the total number
1444	1444	and total dollar amount of scholarship funds disbursed during
1445	1445	the previous calendar year.
1446	1446	b. No later than 180 days after the last day of the
1447	1447	program manager's fiscal year, the results of the audits
1448	1448	described in subdivision (1), including the program manager's
1449	1449	financial statements in a format that meets generally accepted
1450	1450	accounting principles.
1451	1451	(i)(1) The State Board of Education shall review a
1452	1452	report described in this section and may request that the
1453	1453	program manager revise or supplement the report if the report
1454	1454	does not fully comply with this section.
1455	1455	(2) The program manager shall provide to the State
1456	1456	Board of Education a revised report or a supplement to the
1457	1457	report no later than 45 days after the day on which the State
1458	1458	Board of Education makes a request described in subdivision
1459	1459	(1).
1460	1460	Section 7. (a) Nothing in this act shall be interpreted
1461	1461	as doing any of the following:
1462	1462	701
1463	1463	702
1464	1464	703
1465	1465	704
1466	1466	705
1467	1467	706
1468	1468	707
1469	1469	708
1470	1470	709
1471	1471	710
1472	1472	711
1473	1473	712
1474	1474	713
1475	1475	714
1476	1476	715
1477	1477	716
1478	1478	717
1479	1479	718
1480	1480	719
1481	1481	720
1482	1482	721
1483	1483	722
1484	1484	723
1485	1485	724
1486	1486	725
1487	1487	726
1488	1488	727
1489	1489	728 HB442 INTRODUCEDHB442 INTRODUCED
1490	1490	Page 27
1491	1491	(1) Except as expressly described in this act, granting
1492	1492	additional authority to any state agency or local school
1493	1493	system to regulate or control any of the following:
1494	1494	a. A nonpublic school, qualifying provider, or
1495	1495	homeschool.
1496	1496	b. Students receiving education from a nonpublic
1497	1497	school, qualifying provider, or homeschool.
1498	1498	(2) Applying to or otherwise affecting the freedom of
1499	1499	choice of a homeschooled student, including the curriculum,
1500	1500	resources, developmental planning, or any other aspect of the
1501	1501	homeschooled student's education.
1502	1502	(3) Expanding the regulatory authority of the state, a
1503	1503	state office holder, or a local school system to impose any
1504	1504	additional regulation of a qualifying provider beyond any
1505	1505	regulation necessary to administer this act.
1506	1506	(b)(1) A qualifying provider is entitled to maximum
1507	1507	freedom from unlawful governmental control in providing for
1508	1508	the educational needs of a scholarship student who attends or
1509	1509	engages with the qualifying provider.
1510	1510	(2) A qualifying provider is not an agent of the state
1511	1511	by virtue of the provider's acceptance of payment from a
1512	1512	scholarship account in accordance with this act.
1513	1513	(c) Except as provided in Section 4 regarding
1514	1514	qualifying providers, Section 9 regarding eligible schools, or
1515	1515	Section 10 regarding eligible service providers, a program
1516	1516	manager may not require a qualifying provider to alter the
1517	1517	qualifying provider's creed, practices, admissions policies,
1518	1518	hiring practices, or curricula in order to accept scholarship
1519	1519	729
1520	1520	730
1521	1521	731
1522	1522	732
1523	1523	733
1524	1524	734
1525	1525	735
1526	1526	736
1527	1527	737
1528	1528	738
1529	1529	739
1530	1530	740
1531	1531	741
1532	1532	742
1533	1533	743
1534	1534	744
1535	1535	745
1536	1536	746
1537	1537	747
1538	1538	748
1539	1539	749
1540	1540	750
1541	1541	751
1542	1542	752
1543	1543	753
1544	1544	754
1545	1545	755
1546	1546	756 HB442 INTRODUCEDHB442 INTRODUCED
1547	1547	Page 28
1548	1548	funds.
1549	1549	(d) A local school system or a public school within a
1550	1550	local school system in which a scholarship student was
1551	1551	previously enrolled shall provide to the scholarship student's
1552	1552	parent a copy of all school records relating to the student
1553	1553	that the local school system possesses within 30 days after
1554	1554	the day on which the local school system or public school
1555	1555	receives the parent's request for the student's records,
1556	1556	subject to the Family Educational Rights and Privacy Act, 20
1557	1557	U.S.C. §1232g.
1558	1558	(e) By virtue of a scholarship student's involvement in
1559	1559	the program and unless otherwise expressly provided in
1560	1560	statute, a scholarship student is not either of the following:
1561	1561	(1) Enrolled in the public education system.
1562	1562	(2) Otherwise subject to statute, administrative rules,
1563	1563	or other state regulations as if the student was enrolled in
1564	1564	the public education system.
1565	1565	Section 8. The program manager and each employee and
1566	1566	officer of the program manager shall complete a criminal
1567	1567	history background information check. The criminal history
1568	1568	background check shall be administered in a manner prescribed
1569	1569	by the State Board of Education that is consistent with the
1570	1570	Alabama Child Protection Act of 1999, Chapter 22A of Title 16,
1571	1571	and rules adopted by the State Board of Education.
1572	1572	Section 9. (a) To be eligible to receive scholarship
1573	1573	funds on behalf of a scholarship student as an eligible
1574	1574	school, a nonpublic school with 150 or more enrolled students
1575	1575	shall do all of the following:
1576	1576	757
1577	1577	758
1578	1578	759
1579	1579	760
1580	1580	761
1581	1581	762
1582	1582	763
1583	1583	764
1584	1584	765
1585	1585	766
1586	1586	767
1587	1587	768
1588	1588	769
1589	1589	770
1590	1590	771
1591	1591	772
1592	1592	773
1593	1593	774
1594	1594	775
1595	1595	776
1596	1596	777
1597	1597	778
1598	1598	779
1599	1599	780
1600	1600	781
1601	1601	782
1602	1602	783
1603	1603	784 HB442 INTRODUCEDHB442 INTRODUCED
1604	1604	Page 29
1605	1605	(1)a. Contract with an independent licensed certified
1606	1606	public accountant to conduct an agreed upon procedures
1607	1607	engagement as the State Board of Education adopts or obtain an
1608	1608	audit and report that satisfies all of the following:
1609	1609	1. Is conducted by a licensed independent certified
1610	1610	public accountant in accordance with generally accepted
1611	1611	auditing standards.
1612	1612	2. Presents the financial statements in accordance with
1613	1613	generally accepted accounting principles.
1614	1614	3. Audits financial statements from within the 12
1615	1615	months immediately preceding the audit.
1616	1616	b. Submit the audit report or report of the agreed upon
1617	1617	procedure to the program manager when the nonpublic school
1618	1618	applies to receive scholarship funds.
1619	1619	(2) Comply with the antidiscrimination provisions of 42
1620	1620	U.S.C. §2000d.
1621	1621	(3) Provide a written disclosure to the parent of each
1622	1622	prospective scholarship student, before the student is
1623	1623	enrolled, of all of the following:
1624	1624	a. The education services that the school shall provide
1625	1625	to the scholarship student, including the cost of the provided
1626	1626	services.
1627	1627	b. Tuition costs.
1628	1628	c. Additional fees the school shall require a parent to
1629	1629	pay during the school year.
1630	1630	d. The skill or grade level of the curriculum in which
1631	1631	the prospective scholarship student shall participate.
1632	1632	(4) Require the following individuals to submit to a
1633	1633	785
1634	1634	786
1635	1635	787
1636	1636	788
1637	1637	789
1638	1638	790
1639	1639	791
1640	1640	792
1641	1641	793
1642	1642	794
1643	1643	795
1644	1644	796
1645	1645	797
1646	1646	798
1647	1647	799
1648	1648	800
1649	1649	801
1650	1650	802
1651	1651	803
1652	1652	804
1653	1653	805
1654	1654	806
1655	1655	807
1656	1656	808
1657	1657	809
1658	1658	810
1659	1659	811
1660	1660	812 HB442 INTRODUCEDHB442 INTRODUCED
1661	1661	Page 30
1662	1662	criminal history background information check in accordance
1663	1663	with Section 8, as a condition for employment or appointment,
1664	1664	as authorized by the Adam Walsh Child Protection and Safety
1665	1665	Act of 2006, Pub. L. No. 109-248:
1666	1666	a. An employee who does not hold one of the following:
1667	1667	1. A current Alabama educator license issued by the
1668	1668	State Board of Education.
1669	1669	2. If the nonpublic school is not physically located in
1670	1670	this state, a current educator license in the state where the
1671	1671	nonpublic school is physically located.
1672	1672	b. A contract employee.
1673	1673	(b) A nonpublic school described in subsection (a) is
1674	1674	not eligible to receive scholarship funds if any of the
1675	1675	following occur:
1676	1676	(1) The nonpublic school requires a scholarship student
1677	1677	to sign a contract waiving the scholarship student's right to
1678	1678	transfer to another qualifying provider during the school
1679	1679	year.
1680	1680	(2) The audit report described in subdivision (a)(1)
1681	1681	contains a going concern explanatory paragraph.
1682	1682	(3) The report of the agreed upon procedures described
1683	1683	in subdivision (a)(1) shows that the nonpublic school does not
1684	1684	have adequate working capital to maintain operations for the
1685	1685	first full year.
1686	1686	(c) To be eligible to receive scholarship funds on
1687	1687	behalf of a scholarship student as an eligible school, a
1688	1688	nonpublic school with fewer than 150 enrolled students shall
1689	1689	do all of the following:
1690	1690	813
1691	1691	814
1692	1692	815
1693	1693	816
1694	1694	817
1695	1695	818
1696	1696	819
1697	1697	820
1698	1698	821
1699	1699	822
1700	1700	823
1701	1701	824
1702	1702	825
1703	1703	826
1704	1704	827
1705	1705	828
1706	1706	829
1707	1707	830
1708	1708	831
1709	1709	832
1710	1710	833
1711	1711	834
1712	1712	835
1713	1713	836
1714	1714	837
1715	1715	838
1716	1716	839
1717	1717	840 HB442 INTRODUCEDHB442 INTRODUCED
1718	1718	Page 31
1719	1719	(1) Provide to the program manager all of the
1720	1720	following:
1721	1721	a. A federal employer identification number.
1722	1722	b. The provider's address and contact information.
1723	1723	c. A description of each program or service the
1724	1724	provider proposes to offer a scholarship student.
1725	1725	d. Any other information as required by the program
1726	1726	manager.
1727	1727	(2) Comply with the antidiscrimination provisions of 42
1728	1728	U.S.C. §2000d.
1729	1729	(d) A nonpublic school described in subsection (c) is
1730	1730	not eligible to receive scholarship funds if the nonpublic
1731	1731	school requires a scholarship student to sign a contract
1732	1732	waiving the student's rights to transfer to another qualifying
1733	1733	provider during the school year.
1734	1734	(e) To be eligible to receive scholarship funds on
1735	1735	behalf of a scholarship student as an eligible school, a local
1736	1736	school system shall do all of the following:
1737	1737	(1) Provide to the program manager all of the
1738	1738	following:
1739	1739	a. A federal employer identification number.
1740	1740	b. The local school system's address and contact
1741	1741	information.
1742	1742	c. A description of each program or service the local
1743	1743	school system proposes to offer to scholarship students.
1744	1744	d. Any other information as required by the program
1745	1745	manager.
1746	1746	(2) Comply with the antidiscrimination provisions of 42
1747	1747	841
1748	1748	842
1749	1749	843
1750	1750	844
1751	1751	845
1752	1752	846
1753	1753	847
1754	1754	848
1755	1755	849
1756	1756	850
1757	1757	851
1758	1758	852
1759	1759	853
1760	1760	854
1761	1761	855
1762	1762	856
1763	1763	857
1764	1764	858
1765	1765	859
1766	1766	860
1767	1767	861
1768	1768	862
1769	1769	863
1770	1770	864
1771	1771	865
1772	1772	866
1773	1773	867
1774	1774	868 HB442 INTRODUCEDHB442 INTRODUCED
1775	1775	Page 32
1776	1776	U.S.C. §2000d.
1777	1777	(3) Enter into an agreement with the program manager
1778	1778	regarding the provision of services to a scholarship student
1779	1779	through which:
1780	1780	a. The scholarship student does not enroll in the local
1781	1781	school system.
1782	1782	b. The local school system and program manager ensure
1783	1783	that a scholarship student does not participate in a course or
1784	1784	program at the local school system except in accordance with
1785	1785	the agreement described in this subsection under the program.
1786	1786	(f) A local school system described in subsection (e)
1787	1787	is not eligible to receive scholarship funds in either of the
1788	1788	following situations:
1789	1789	(1) The local school system requires a public education
1790	1790	system scholarship student to sign a contract waiving the
1791	1791	student's rights to transfer to another qualifying provider
1792	1792	during the school year.
1793	1793	(2) The local school system refuses to offer services
1794	1794	that do not require local school system enrollment to
1795	1795	scholarship students under the program.
1796	1796	(g) Residential treatment facilities licensed by the
1797	1797	state are not eligible to receive scholarship funds.
1798	1798	(h) A nonpublic school or local school system intending
1799	1799	to receive scholarship funds shall do both of the following:
1800	1800	(1) Submit an application to the program manager.
1801	1801	(2) Agree to not refund, rebate, or share scholarship
1802	1802	funds with scholarship students or scholarship student's
1803	1803	parents in any manner except remittances or refunds to a
1804	1804	869
1805	1805	870
1806	1806	871
1807	1807	872
1808	1808	873
1809	1809	874
1810	1810	875
1811	1811	876
1812	1812	877
1813	1813	878
1814	1814	879
1815	1815	880
1816	1816	881
1817	1817	882
1818	1818	883
1819	1819	884
1820	1820	885
1821	1821	886
1822	1822	887
1823	1823	888
1824	1824	889
1825	1825	890
1826	1826	891
1827	1827	892
1828	1828	893
1829	1829	894
1830	1830	895
1831	1831	896 HB442 INTRODUCEDHB442 INTRODUCED
1832	1832	Page 33
1833	1833	scholarship account in accordance with this act and procedures
1834	1834	that the program manager establishes.
1835	1835	(i) The program manager shall do all of the following:
1836	1836	(1) If the nonpublic school or local school system
1837	1837	meets the eligibility requirements of this section, recognize
1838	1838	the nonpublic school or local school system as an eligible
1839	1839	school and approve the application.
1840	1840	(2) Make available to the public a list of eligible
1841	1841	schools approved under this section.
1842	1842	(j) A nonpublic school approved under this section that
1843	1843	changes ownership shall do all of the following:
1844	1844	(1) Cease operation as an eligible school until both of
1845	1845	the following occur:
1846	1846	a. The school submits a new application to the program
1847	1847	manager.
1848	1848	b. The program manager approves the new application.
1849	1849	(2) Demonstrate that the nonpublic school continues to
1850	1850	meet the eligibility requirements of this section.
1851	1851	Section 10. (a) To be an eligible service provider, a
1852	1852	private program or service shall do all of the following:
1853	1853	(1) Provide to the program manager all of the
1854	1854	following:
1855	1855	a. A federal employer identification number.
1856	1856	b. The provider's address and contact information.
1857	1857	c. A description of each program or service the
1858	1858	provider proposes to offer directly to a scholarship student.
1859	1859	d. Subject to subsection (b), any other information as
1860	1860	required by the program manager.
1861	1861	897
1862	1862	898
1863	1863	899
1864	1864	900
1865	1865	901
1866	1866	902
1867	1867	903
1868	1868	904
1869	1869	905
1870	1870	906
1871	1871	907
1872	1872	908
1873	1873	909
1874	1874	910
1875	1875	911
1876	1876	912
1877	1877	913
1878	1878	914
1879	1879	915
1880	1880	916
1881	1881	917
1882	1882	918
1883	1883	919
1884	1884	920
1885	1885	921
1886	1886	922
1887	1887	923
1888	1888	924 HB442 INTRODUCEDHB442 INTRODUCED
1889	1889	Page 34
1890	1890	(2) Comply with the antidiscrimination provisions of 42
1891	1891	U.S.C. §2000d.
1892	1892	(3) Not act as a consultant, clearing house, or
1893	1893	intermediary that connects a scholarship student with or
1894	1894	otherwise facilitates the student's engagement with a program
1895	1895	or service that another entity provides.
1896	1896	(b) The program manager shall adopt policies that
1897	1897	maximize the number of eligible service providers, including
1898	1898	accepting new providers throughout the school year, while
1899	1899	ensuring education programs or services provided through the
1900	1900	program meet student needs and otherwise comply with this act.
1901	1901	(c) A private program or service intending to receive
1902	1902	scholarship funds shall do both of the following:
1903	1903	(1) Submit an application to the program manager.
1904	1904	(2) Agree to not refund, rebate, or share scholarship
1905	1905	funds with scholarship students or scholarship students'
1906	1906	parents in any manner except remittances or refunds to a
1907	1907	scholarship account in accordance with this act and procedures
1908	1908	that the program manager establishes.
1909	1909	(d) The program manager shall do all of the following:
1910	1910	(1) If the private program or service meets the
1911	1911	eligibility requirements of this section, recognize the
1912	1912	private program or service as an eligible service provider and
1913	1913	approve a private program or service's application to receive
1914	1914	scholarship funds on behalf of a scholarship student.
1915	1915	(2) Make available to the public a list of eligible
1916	1916	service providers approved under this section.
1917	1917	(e) A private program or service approved under this
1918	1918	925
1919	1919	926
1920	1920	927
1921	1921	928
1922	1922	929
1923	1923	930
1924	1924	931
1925	1925	932
1926	1926	933
1927	1927	934
1928	1928	935
1929	1929	936
1930	1930	937
1931	1931	938
1932	1932	939
1933	1933	940
1934	1934	941
1935	1935	942
1936	1936	943
1937	1937	944
1938	1938	945
1939	1939	946
1940	1940	947
1941	1941	948
1942	1942	949
1943	1943	950
1944	1944	951
1945	1945	952 HB442 INTRODUCEDHB442 INTRODUCED
1946	1946	Page 35
1947	1947	section that changes ownership shall do all of the following:
1948	1948	(1) Cease operation as an eligible service provider
1949	1949	until all of the following occur:
1950	1950	a. The program or service submits a new application to
1951	1951	the program manager.
1952	1952	b. The program manager approves the new application.
1953	1953	(2) Demonstrate that the private program or service
1954	1954	continues to meet the eligibility requirements of this
1955	1955	section.
1956	1956	Section 11. (a) Regarding a parent's right to academic
1957	1957	accommodations, nothing in this act restricts or affects a
1958	1958	parent's interests and role in the care, custody, and control
1959	1959	of the parent's child, including the duty and right to nurture
1960	1960	and direct the child's upbringing and education.
1961	1961	(b)(1) A parent may request that the program manager
1962	1962	facilitate any of the assessments provided to public school
1963	1963	students to the parent's scholarship student including, but
1964	1964	not limited to, college readiness assessments, reading grade
1965	1965	level assessments, and nationally norm-referenced assessments.
1966	1966	(2)a. Notwithstanding any other provision of law, the
1967	1967	entity administering an assessment described in subdivision
1968	1968	(1) to a scholarship student in accordance with this section
1969	1969	may not report the result of or any other data pertaining to
1970	1970	the assessment or scholarship student to an individual or
1971	1971	entity other than the program manager, the scholarship
1972	1972	student, or the scholarship student's parent.
1973	1973	b. The program manager may not report or communicate
1974	1974	the result or data described in paragraph a. to an individual
1975	1975	953
1976	1976	954
1977	1977	955
1978	1978	956
1979	1979	957
1980	1980	958
1981	1981	959
1982	1982	960
1983	1983	961
1984	1984	962
1985	1985	963
1986	1986	964
1987	1987	965
1988	1988	966
1989	1989	967
1990	1990	968
1991	1991	969
1992	1992	970
1993	1993	971
1994	1994	972
1995	1995	973
1996	1996	974
1997	1997	975
1998	1998	976
1999	1999	977
2000	2000	978
2001	2001	979
2002	2002	980 HB442 INTRODUCEDHB442 INTRODUCED
2003	2003	Page 36
2004	2004	or entity other than the relevant scholarship student and the
2005	2005	scholarship student's parent unless the result or data is
2006	2006	included in a deidentified compilation of data related to all
2007	2007	scholarship students.
2008	2008	(3) In any communication from the program manager
2009	2009	regarding an assessment described in this subsection, the
2010	2010	program manager shall include a disclaimer that no assessment
2011	2011	is required.
2012	2012	(4) The completion of an optional assessment under this
2013	2013	section satisfies the portfolio eligibility qualification
2014	2014	described in subdivision (c)(4) of Section 3.
2015	2015	Section 12. (a) If a scholarship student enters or
2016	2016	reenters the public education system during a given school
2017	2017	year:
2018	2018	(1) No later than five business days after the day on
2019	2019	which the student enters or reenters the public education
2020	2020	system, the program manager shall immediately remove the
2021	2021	balance in the scholarship student's scholarship account for
2022	2022	other use within the program.
2023	2023	(2) The State Board of Education may not distribute any
2024	2024	remaining state funds to the program manager for the student.
2025	2025	(3) The program manager may use the balance described
2026	2026	in subdivision (1) for another scholarship student.
2027	2027	(b) At the end of a school year, a program manager
2028	2028	shall withdraw any remaining scholarship funds in a
2029	2029	scholarship account and retain the scholarship funds for
2030	2030	disbursement in the following year.
2031	2031	(c)(1) To administer the program, the program manager
2032	2032	981
2033	2033	982
2034	2034	983
2035	2035	984
2036	2036	985
2037	2037	986
2038	2038	987
2039	2039	988
2040	2040	989
2041	2041	990
2042	2042	991
2043	2043	992
2044	2044	993
2045	2045	994
2046	2046	995
2047	2047	996
2048	2048	997
2049	2049	998
2050	2050	999
2051	2051	1000
2052	2052	1001
2053	2053	1002
2054	2054	1003
2055	2055	1004
2056	2056	1005
2057	2057	1006
2058	2058	1007
2059	2059	1008 HB442 INTRODUCEDHB442 INTRODUCED
2060	2060	Page 37
2061	2061	may use up to the lesser of five percent or two million five
2062	2062	hundred thousand dollars ($2,500,000) of the funds the
2063	2063	Legislature appropriates for the program.
2064	2064	(2) Subject to subdivision (1), the funds for program
2065	2065	administration described in subdivision (1) are nonlapsing.
2066	2066	(3) The program manager may not retain administrative
2067	2067	cost balances in excess of 25 percent of total administrative
2068	2068	costs in any fiscal year.
2069	2069	Section 13. Beginning in 2025 and in accordance with
2070	2070	the Family Educational Rights and Privacy Act, 20 U.S.C.
2071	2071	§1232g:
2072	2072	(1) The program manager shall submit a report on the
2073	2073	program to the Chairs of the Senate Finance and Taxation
2074	2074	Education Committee and the House Ways and Means Education
2075	2075	Committee no later than September 1 of each year that includes
2076	2076	all of the following:
2077	2077	a. The total amount of tuition and fees qualifying
2078	2078	providers charged for the current year and previous two years.
2079	2079	b. The total amount of goods paid for with scholarship
2080	2080	funds in the previous year and a general characterization of
2081	2081	the types of goods.
2082	2082	c. Administrative costs of the program.
2083	2083	d. The number of scholarship students from each county
2084	2084	and the aggregate number of eligible students on the wait list
2085	2085	described in Section 6.
2086	2086	e. The percentage of first-time scholarship students
2087	2087	who were enrolled in a public school during the previous
2088	2088	school year or who entered kindergarten or a higher grade for
2089	2089	1009
2090	2090	1010
2091	2091	1011
2092	2092	1012
2093	2093	1013
2094	2094	1014
2095	2095	1015
2096	2096	1016
2097	2097	1017
2098	2098	1018
2099	2099	1019
2100	2100	1020
2101	2101	1021
2102	2102	1022
2103	2103	1023
2104	2104	1024
2105	2105	1025
2106	2106	1026
2107	2107	1027
2108	2108	1028
2109	2109	1029
2110	2110	1030
2111	2111	1031
2112	2112	1032
2113	2113	1033
2114	2114	1034
2115	2115	1035
2116	2116	1036 HB442 INTRODUCEDHB442 INTRODUCED
2117	2117	Page 38
2118	2118	the first time in Alabama.
2119	2119	f. The program manager's strategy and outreach efforts
2120	2120	to reach eligible students whose family income is at or below
2121	2121	200 percent of the federal poverty level and related obstacles
2122	2122	to enrollments.
2123	2123	g. In the report that the program manager submits in
2124	2124	2025, information on steps the program manager has taken and
2125	2125	processes the program manager has adopted to implement the
2126	2126	program.
2127	2127	h. Any other information regarding the program and the
2128	2128	program's implementation that the Chair of the Senate Finance
2129	2129	and Taxation Education Committee or the Chair of the House
2130	2130	Ways and Means Education Committee requests.
2131	2131	(2) The State Board of Education shall also submit a
2132	2132	report on the cost-effectiveness of the program to the Chairs
2133	2133	of the Senate Finance and Taxation Education Committee and the
2134	2134	House Ways and Means Education Committee no later than
2135	2135	September 1 of each year.
2136	2136	Section 14. (a) In any legal proceeding against the
2137	2137	state in which a qualifying provider challenges the
2138	2138	application of this act to the qualifying provider, the state
2139	2139	shall bear the burden of establishing that the law is
2140	2140	necessary and does not impose an undue burden on the
2141	2141	qualifying provider.
2142	2142	(b) The following bear no liability based on the award
2143	2143	or use of scholarship funds under this act:
2144	2144	(1) This state.
2145	2145	(2) The State Board of Education.
2146	2146	1037
2147	2147	1038
2148	2148	1039
2149	2149	1040
2150	2150	1041
2151	2151	1042
2152	2152	1043
2153	2153	1044
2154	2154	1045
2155	2155	1046
2156	2156	1047
2157	2157	1048
2158	2158	1049
2159	2159	1050
2160	2160	1051
2161	2161	1052
2162	2162	1053
2163	2163	1054
2164	2164	1055
2165	2165	1056
2166	2166	1057
2167	2167	1058
2168	2168	1059
2169	2169	1060
2170	2170	1061
2171	2171	1062
2172	2172	1063
2173	2173	1064 HB442 INTRODUCEDHB442 INTRODUCED
2174	2174	Page 39
2175	2175	(3) The program manager.
2176	2176	(4) A local school system.
2177	2177	(c) If any provision of this act is the subject of a
2178	2178	state or federal constitutional challenge in a state court,
2179	2179	scholarship students and scholarship students' parents may
2180	2180	intervene as a matter of right to defend the program's
2181	2181	constitutionality, subject to any court order that all
2182	2182	defending parents and scholarship students intervene jointly.
2183	2183	Section 15. If any provision of this act or the
2184	2184	application of any provision of this act to any individual,
2185	2185	entity, or circumstance is held invalid by a final decision of
2186	2186	a court of competent jurisdiction, the remaining provisions of
2187	2187	this act remain effective without the invalidated provision or
2188	2188	application.
2189	2189	Section 16. This act shall become effective on the
2190	2190	first day of the third month following its passage and
2191	2191	approval by the Governor, or its otherwise becoming law.
2192	2192	1065
2193	2193	1066
2194	2194	1067
2195	2195	1068
2196	2196	1069
2197	2197	1070
2198	2198	1071
2199	2199	1072
2200	2200	1073
2201	2201	1074
2202	2202	1075
2203	2203	1076
2204	2204	1077
2205	2205	1078
2206	2206	1079
2207	2207	1080
2208	2208	1081