Alabama 2023 Regular Session

Alabama Senate Bill SB202 Compare Versions

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

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1	1	SB202INTRODUCED
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3	3	2YBAKS-1
4	4	By Senators Stutts, Albritton, Shelnutt, Barfoot, Sessions,
5	5	Livingston
6	6	RFD: Education Policy
7	7	First Read: 11-Apr-23
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13	13	6 2YBAKS-1 04/10/2023 KMS (L)cr 2023-1245
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15	15	SYNOPSIS:
16	16	This bill would create the Parental Rights in
17	17	Children's Education (PRICE) Act for K-12 education.
18	18	This bill would secure the fundamental
19	19	constitutional rights of parents to direct the
20	20	education of their children according to their
21	21	religious faith, beliefs, values, and morals.
22	22	This bill would create and provide for the PRICE
23	23	Program and would establish a three-year phase-in
24	24	period.
25	25	This bill would establish the roles and
26	26	responsibilities of the Parent Advisory Board, the
27	27	Commissioner of Revenue, and the State Department of
28	28	Revenue.
29	29	This bill would provide for the funding of the
30	30	PRICE ESA Fund and the PRICE Administration Fund for
31	31	the costs of administrating the PRICE Program.
32	32	This bill would provide for the implementation
33	33	and administration of the PRICE Program and the use of
34	34	education savings accounts.
35	35	This bill would specify the qualified expenses
36	36	that may be paid from an education savings account.
37	37	This bill would retain the autonomy of nonpublic
38	38	schools and prevent additional state control over or
39	39	interference with nonpublic schools, their students,
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69	69	and families.
70	70	This bill would provide for the auditing,
71	71	denials, and appeals of the PRICE Program and the
72	72	suspension of parents, participating students, and
73	73	education service providers.
74	74	This bill would also provide for legal remedies.
75	75	A BILL
76	76	TO BE ENTITLED
77	77	AN ACT
78	78	Relating to education; to establish the Parental Rights
79	79	in Children's Education (PRICE) Act relating to K-12
80	80	education; to secure the fundamental constitutional rights of
81	81	parents to direct the education of their children; to create
82	82	the PRICE Program; to establish a three-year phase-in period;
83	83	to provide definitions; to establish the roles and
84	84	responsibilities of the Parent Advisory Board, the
85	85	Commissioner of Revenue, and the Department of Revenue; to
86	86	create a process for granting education savings accounts; to
87	87	establish funding mechanisms for the costs of education
88	88	savings accounts and the administration of the program; to
89	89	specify qualified expenses; to create requirements for
90	90	education service providers; to establish an auditing, denial,
91	91	and appeal mechanism for expenses, parents, participating
92	92	students, and education service providers; to provide
93	93	safeguards against any additional state control over or
94	94	interference with nonpublic schools, their students, and their
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124	124	families; and to provide for legal remedies.
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 Parental Rights in Children's Education (PRICE) Act.
128	128	Section 2. The Legislature finds and declares all of
129	129	the following:
130	130	(1) Because education is critical to the well being of
131	131	children, Alabama made the education of all school-age
132	132	children residing in this state mandatory and parents
133	133	responsible for the school attendance of their children.
134	134	(2) Parental involvement is essential for the academic
135	135	success and healthy development of children, strong families,
136	136	and a prosperous state. Parental involvement must therefore be
137	137	strongly valued and supported in the education of their
138	138	children. Parents generally know their children best, love
139	139	their children most, and from time immemorial have
140	140	traditionally been the primary advocates of the best interests
141	141	of their children.
142	142	(3) Parents have a fundamental constitutional right to
143	143	direct the upbringing and education of their children and to
144	144	impart to their children their faith, beliefs, values, and
145	145	morals through education and by choosing the type of
146	146	education, including nonpublic schools, their children
147	147	receive.
148	148	(4) If a state provides tuition assistance to parents
149	149	of children for a nonpublic K-12 education, the state may not
150	150	bar those parents from selecting religious schools due to
151	151	their religious affiliation or the religious instruction they
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181	181	provide. Carson v. Makin, 142 S.Ct. 1987 (2022).
182	182	(5) A state education funding program that is neutral
183	183	on its face and generally available, including religious
184	184	schools, does not violate the Establishment Clause of the
185	185	First Amendment to the United States Constitution. Espinosa v.
186	186	Montana Department of Revenue, 140 S.Ct. 2246 (2020).
187	187	(6) A state education funding program that prohibits
188	188	parents from choosing religious schools simply because they
189	189	are religious, violates the rights of parents under the Free
190	190	Exercise Clause of the First Amendment to the United States
191	191	Constitution. Espinosa v. Montana Department of Revenue, 140
192	192	S.Ct. 2246 (2020).
193	193	(7) Section 16-1-11(5), Code of Alabama 1975, provides
194	194	that "regulation by the state, including the State Department
195	195	of Education, the State Board of Education, or the State
196	196	Superintendent of Education, of any school with a religious
197	197	affiliation would be an unconstitutional burden on religious
198	198	activities in direct violation of the Alabama Religious
199	199	Freedom Amendment and the First Amendment to the United States
200	200	Constitution; and further that the State of Alabama has no
201	201	compelling interest to burden by license or regulation
202	202	nonpublic schools, which include private, church, parochial,
203	203	and religious schools offering educational instruction in
204	204	grades K-12, as well as home-based schools and home-schooled
205	205	students."
206	206	(8) This act intends to prevent discrimination against
207	207	parents who must pay both tuition and taxes if they choose a
208	208	nonpublic education, or who are denied that right because of a
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238	238	lack of funds, and to prevent violations of the Alabama
239	239	Religious Freedom Amendment and both the Establishment Clause
240	240	and the Free Exercise Clause of the First Amendment to the
241	241	United States Constitution.
242	242	Section 3. For the purposes of this act, the following
243	243	terms shall have the following meanings:
244	244	(1) ASSIGNED PUBLIC SCHOOL. The school to which an
245	245	eligible recipient or participating student is assigned based
246	246	on his or her Alabama address.
247	247	(2) BOARD. The Parent Advisory Board.
248	248	(3) COMMISSIONER. The Commissioner of Revenue.
249	249	(4) CURRICULUM. A course of study for content areas or
250	250	grade levels, including any supplemental materials or
251	251	resources required, recommended, or complementary to a course
252	252	of study.
253	253	(5) DEPARTMENT. The State Department of Revenue.
254	254	(6) EDUCATION SAVINGS ACCOUNT (ESA). An account in
255	255	which funds are deposited by the department for the parent of
256	256	a participating student to pay qualifying expenses.
257	257	(7) EDUCATION SERVICE PROVIDER. A participating school,
258	258	organization, vendor, or individual that provides educational
259	259	goods and services to participating students.
260	260	(8) ELIGIBLE RECIPIENT. A student who is a resident of
261	261	this state, a citizen of the United States, and eligible to
262	262	enroll in his or her assigned public school.
263	263	(9) NONPUBLIC SCHOOL. A nongovernment K-12 school
264	264	offering educational instruction. The term includes private
265	265	(religious and nonreligious), parochial, and church schools,
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295	295	including home-based education programs.
296	296	(10) PARENT. The biological or adoptive parent, legal
297	297	guardian, custodian, or other individual with legal authority
298	298	to act on behalf of an eligible recipient or participating
299	299	student.
300	300	(11) PARTICIPATING SCHOOL. Any public school or
301	301	nonpublic school that provides educational services to K-12
302	302	participating students.
303	303	(12) PARTICIPATING STUDENT. A resident of this state
304	304	and a citizen of the United States who is an elementary,
305	305	secondary, or postsecondary school student and uses ESA funds
306	306	pursuant to this act.
307	307	(13) PRICE PROGRAM. The program created by this act
308	308	which provides funds for a participating student's ESA to pay
309	309	for education instructional goods and services.
310	310	(14) QUALIFYING EXPENSES. Education expenses listed in
311	311	Section 9(a) that may be paid for by a parent with ESA funds
312	312	on behalf of a participating student.
313	313	Section 4. (a) The annual ESA amount for each
314	314	participating student shall be six thousand nine hundred
315	315	dollars ($6,900) for the 2024-2025 school year, and shall be
316	316	adjusted annually by the department based on the percentage
317	317	change of the Education Trust Fund's share of the Foundation
318	318	Program from the prior year, if positive. The amount of
319	319	funding for a participating student for less than a full
320	320	fiscal year shall be prorated based on the portion of the
321	321	fiscal year the student receives funds from an ESA.
322	322	(b) The PRICE ESA Fund is created in the State Treasury
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352	352	to receive appropriations from the Legislature for the funding
353	353	of ESAs as provided by this act. The Legislature shall make
354	354	appropriations to this fund in amounts sufficient to fully
355	355	fund the projected amount of ESA deposits to be made the
356	356	proceeding fiscal year. Any monies remaining in the fund at
357	357	the end of a fiscal year shall not revert but shall remain in
358	358	the fund and are reappropriated for the purposes authorized by
359	359	this act.
360	360	(c) Each school year the department shall make periodic
361	361	deposits, equaling the total ESA amount, into the ESA of a
362	362	participating student beginning no later than August 1. Any
363	363	funds remaining in an ESA at the end of a fiscal year may be
364	364	carried over to the next fiscal year upon successful renewal
365	365	of the ESA or until any of the conditions in
366	366	subdivision(b)(13) or subsection (d) of Section 7 are met.
367	367	(d) The PRICE Administration Fund is created in the
368	368	State Treasury for the administration of the PRICE Program by
369	369	the department. The lesser of two million dollars
370	370	($2,000,000), or three percent of the amount appropriated each
371	371	fiscal year to the PRICE ESA Fund, shall be transferred each
372	372	fiscal year from the PRICE ESA Fund to the PRICE
373	373	Administration Fund. The expenses incurred by the department
374	374	in carrying out this act shall be paid from monies in the
375	375	PRICE Administration Fund. The Legislature may make additional
376	376	appropriations to the PRICE Administration Fund upon a showing
377	377	of the need for additional monies in the administration of the
378	378	PRICE Program. Any monies remaining in the fund at the end of
379	379	each fiscal year shall revert to the PRICE ESA Fund.
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409	409	(e) No monies shall be withdrawn or expended from the
410	410	funds created in this section for any purpose unless the
411	411	monies have been appropriated by the Legislature and allocated
412	412	pursuant to this act. Any monies appropriated shall be
413	413	budgeted and allotted pursuant to the Budget Management Act in
414	414	accordance with Article 4, commencing with Section 41-4-80 of
415	415	Chapter 4 of Title 41, Code of Alabama 1975, and only in the
416	416	amounts provided by the Legislature in the general
417	417	appropriations act or other appropriations act.
418	418	Section 5. The PRICE Program shall be phased in over a
419	419	three-year period as follows:
420	420	(1) Commencing with the 2024-2025 school year, any
421	421	child who is, was, or would have been eligible to enter
422	422	kindergarten pursuant to Section 16-28-4, Code of Alabama
423	423	1975, during that school year, or who will be enrolled in the
424	424	third, sixth, ninth, and twelfth grades during that school
425	425	year, or who is zoned for the lowest 30 percent of K-12 public
426	426	schools based on the state standardized assessment in reading
427	427	and math in the preceding year, qualifies for special
428	428	education, is homeless, is in foster care, or is the child of
429	429	a parent who is on active duty, serves in a reserve component
430	430	of the United States Armed Forces, or was killed in the line
431	431	of duty, along with the siblings of any eligible child
432	432	pursuant to this subdivision, may apply for participating
433	433	student status for the 2024-2025 school year, and each school
434	434	year thereafter.
435	435	(2) Commencing with the 2025-2026 school year, in
436	436	addition to the students eligible for participating student
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466	466	status under subdivision (1), any child who is, was, or would
467	467	have been eligible to enter kindergarten pursuant to Section
468	468	16-28-4, Code of Alabama 1975, during that school year, or who
469	469	will be enrolled in the third, sixth, ninth, and twelfth
470	470	grades during that school year, or who is zoned for the lowest
471	471	30 percent of K-12 public schools based on the state
472	472	standardized assessment in reading and math in the preceding
473	473	year, qualifies for special education, is homeless, is in
474	474	foster care, or is a child of a parent who is on active duty,
475	475	serves in a reserve component of the United States Armed
476	476	Forces, or was killed in the line of duty, along with the
477	477	siblings of any eligible child pursuant to this subdivision,
478	478	may apply for participating student status for the 2025-2026
479	479	school year, and each school year thereafter.
480	480	(3) For every school year thereafter, any child who is
481	481	an eligible recipient in the State of Alabama may apply for or
482	482	renew his or her participating student status.
483	483	Section 6. (a) There is created the Parent Advisory
484	484	Board. The board shall do all of the following:
485	485	(1) Consult with state departments or agencies, and
486	486	parents or administrators from the categories of education
487	487	options listed in subdivision (b)(4), as appropriate to carry
488	488	out these responsibilities.
489	489	(2) Review and provide recommendations to the
490	490	department on all of the following:
491	491	a. The implementation, administration, and improvement
492	492	of the PRICE Program policies, procedures, and systems.
493	493	b. The concerns and complaints of parents of
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523	523	participating students.
524	524	c. Questionable education service providers and other
525	525	qualified expenses.
526	526	d. Appeals of denied expenses and the barring of
527	527	parents and education service providers from the PRICE Program
528	528	pursuant to Section 13.
529	529	(b) The membership of the board shall consist of the
530	530	following members:
531	531	(1) The commissioner, or his or her designee, shall
532	532	serve as chair of the board and shall be a nonvoting member
533	533	unless there is a tie.
534	534	(2) The Governor, or his or her designee.
535	535	(3) The Lieutenant Governor, or his or her designee.
536	536	(4) The President Pro Tempore of the Senate and the
537	537	Speaker of the House of Representatives shall each appoint
538	538	four parents of eligible recipients intending to participate
539	539	or of participating students, one from each of the following
540	540	four categories, as listed in Sections 16-1-11.2 and
541	541	16-1-11.3, Code of Alabama 1975:
542	542	a. Private schools (non-religious and religious).
543	543	b. Church schools.
544	544	c. Parochial schools.
545	545	d. Home-based education programs.
546	546	(5) The Minority Leader of the Senate and the Minority
547	547	Leader of the House of Representatives shall each appoint one
548	548	parent of an eligible recipient intending to participate or of
549	549	a participating student, which shall be from one of the four
550	550	categories listed under subdivision (4).
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580	580	(c) The appointed members, as provided in subdivisions
581	581	(4) and (5) of subsection (b), shall initially serve staggered
582	582	terms of one, two, or three years as determined by the chair.
583	583	An appointment to fill a vacancy shall be made from the
584	584	corresponding category by the original appointing authority
585	585	for the remainder of the unexpired term. Board members may
586	586	serve up to two additional three-year terms thereafter.
587	587	(d) A parent may not serve on the board if he or she is
588	588	an employee or immediate relative of an employee of the State
589	589	Department of Education or provides goods or services to the
590	590	state to directly implement or administer the PRICE Program.
591	591	(e) A board member shall recuse himself or herself from
592	592	voting on any issue where he or she has a substantial
593	593	financial interest, or other conflict of interest excluding
594	594	the receipt of an ESA for his or her participating student.
595	595	(f) A board member may be removed or replaced by the
596	596	board at any time pursuant to a two-thirds majority vote of
597	597	the membership of the board.
598	598	(g) All members of the board shall be citizens of the
599	599	United States and legal residents of Alabama during his or her
600	600	entire term. The appointing authorities shall coordinate their
601	601	appointments to assure the board membership is inclusive and
602	602	reflects the racial, gender, geographic, urban, rural, and
603	603	economic diversity of the state. Board member designees and
604	604	parent appointments shall be selected from qualified
605	605	individuals tho are well informed on nonpublic education
606	606	options, acquainted with the PRICE Program procedures, and in
607	607	touch with other parents who will be using the program
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637	637	(h) Members shall serve without compensation. The
638	638	department shall pay all reasonable and necessary expenses,
639	639	including per diem or actual travel expenses incurred in the
640	640	conduct of official duties, from the PRICE Administration Fund
641	641	at the same rate paid to state employees.
642	642	(i) The board shall meet in person at least quarterly.
643	643	Additionally, at the request of any board member, the board
644	644	may meet in person or virtually to transact business at any
645	645	time.
646	646	(j) A majority of the members of the Board shall
647	647	constitute a quorum for the transaction of business, unless
648	648	otherwise provided in this section.
649	649	(k) A vice chair shall be selected by a majority of the
650	650	entire membership of the board and shall preside over meetings
651	651	in the absence of the chair.
652	652	(l) The board is subject to the Alabama Open Meetings
653	653	Act, Chapter 25A of Title 36, Code of Alabama 1975, and the
654	654	open records law, Chapter 12 of Title 36, Code of Alabama
655	655	1975.
656	656	Section 7. (a) Rules, policies, and procedures adopted
657	657	by the department to implement and administer this act shall
658	658	do all of the following:
659	659	(1) Avoid bureaucracy or prescriptive mandates and may
660	660	not unnecessarily burden parents or education service
661	661	providers offering educational instruction goods and services.
662	662	(2) Value, enable, and support parental involvement.
663	663	(3) Encourage education service providers offering
664	664	educational instruction goods and services to provide parents
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681	681	325
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694	694	and participating students with a broad array of educational
695	695	instruction options.
696	696	(4) Not subject nonpublic schools to additional
697	697	regulation or licensure.
698	698	(b) In addition to any other duty, obligation, or
699	699	authority provided in this act, the department shall do all of
700	700	the following:
701	701	(1) Execute contracts and other instruments for
702	702	necessary goods, services, and office space, employ necessary
703	703	personnel, and engage the services of private consultants,
704	704	auditors, counsel, managers, and other professionals or
705	705	organizations as needed for the implementation and
706	706	administration of the PRICE Program.
707	707	(2) Contract with financial organizations as account
708	708	depositories and managers.
709	709	(3) Not place PRICE Program funds in high risk,
710	710	long-term financial instruments. Any earned interest shall be
711	711	returned to the ESA of the participating student.
712	712	(4) Implement a commercially viable, cost-effective,
713	713	and parent friendly system for direct payments from and
714	714	refunds to ESAs for qualified expenses by electronic or online
715	715	funds transfer which assist in the administering of the PRICE
716	716	Program, automate reconciliation, and provide easy access to
717	717	data for audits while reducing the risk of fraud, waste, and
718	718	abuse. An ESA may not be reduced for electronic payment fees
719	719	or any other costs associated with the payment and refund
720	720	system.
721	721	(5) Adopt a registration application and process for
722	722	337
723	723	338
724	724	339
725	725	340
726	726	341
727	727	342
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730	730	345
731	731	346
732	732	347
733	733	348
734	734	349
735	735	350
736	736	351
737	737	352
738	738	353
739	739	354
740	740	355
741	741	356
742	742	357
743	743	358
744	744	359
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746	746	361
747	747	362
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751	751	approving participating students and education service
752	752	providers.
753	753	(6) Assist a participating student in the following
754	754	manner: If an education service provider requires partial
755	755	payment of tuition or fees before the start of the school year
756	756	to reserve space for a participating student, the partial
757	757	payment may be paid by the department before the start of the
758	758	school year in which the ESA is awarded and deducted from a
759	759	subsequent ESA deposit. If a parent decides not to use the
760	760	education service provider, the partial reservation payment
761	761	shall be returned to the department and credited to the ESA of
762	762	the participating student.
763	763	(7) Make periodic deposits, equaling the total ESA
764	764	amount, into the ESA of a participating student pursuant to
765	765	Section 4(c).
766	766	(8) Make information regarding the PRICE Program
767	767	readily available to the public on the website of the
768	768	department. Information on the website may include the ESA
769	769	application process, responsibilities of parents, qualifying
770	770	expenses for ESA funds, updated lists of education service
771	771	providers and their responsibilities, the registration
772	772	process, duties of the department or other organizations that
773	773	may assist in the administration of the PRICE Program, and
774	774	other pertinent information.
775	775	(9) Inform parents of eligible recipients of the
776	776	existence of the PRICE Program by January 1 of each year
777	777	through a variety of means. In addition, a summary of the
778	778	information provided online pursuant to subdivision (8) shall
779	779	365
780	780	366
781	781	367
782	782	368
783	783	369
784	784	370
785	785	371
786	786	372
787	787	373
788	788	374
789	789	375
790	790	376
791	791	377
792	792	378
793	793	379
794	794	380
795	795	381
796	796	382
797	797	383
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799	799	385
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807	807	Page 15
808	808	be mailed by January 1, for the first three years after the
809	809	effective date of this act, and then mailed or emailed to all
810	810	parents of eligible recipients who are not parents of a
811	811	participating student in the PRICE Program, by January 1 of
812	812	each year thereafter.
813	813	(10) Provide a helpline and other means to answer
814	814	questions, at a minimum, during normal weekday business hours.
815	815	(11) Adopt procedures to provide the least disruptive
816	816	process for participating students to transfer between
817	817	participating schools and to leave the PRICE Program
818	818	including, but not limited to, all of the following:
819	819	a. When a participating student enrolls as a full-time
820	820	student in his or her assigned public school, payments into
821	821	the ESA of the participating student shall immediately cease.
822	822	However, for ESAs that have been open for at least one full
823	823	school year, the ESA shall remain open and active for the
824	824	parent to pay qualifying expenses to educate the student from
825	825	funds remaining in the ESA. When no funds remain in the ESA of
826	826	a student, or the student reaches 21 years of age, the
827	827	department shall close the ESA and return any remaining funds
828	828	to the PRICE ESA Fund.
829	829	b. If an eligible recipient decides to return to the
830	830	PRICE Program, payments into the existing ESA of the student
831	831	may resume if the ESA is still open and active. A new ESA may
832	832	be established if the ESA of the student was closed.
833	833	c. A participating student may transfer between
834	834	participating schools only between semesters, unless the
835	835	participating school undergoes a substantial change in
836	836	393
837	837	394
838	838	395
839	839	396
840	840	397
841	841	398
842	842	399
843	843	400
844	844	401
845	845	402
846	846	403
847	847	404
848	848	405
849	849	406
850	850	407
851	851	408
852	852	409
853	853	410
854	854	411
855	855	412
856	856	413
857	857	414
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864	864	Page 16
865	865	operation or the family of the participating student
866	866	involuntarily suffers a substantial hardship, such as moving
867	867	to another part of the state. In the event of a hardship, the
868	868	parent may petition the department to transfer the
869	869	participating student to another participating school and
870	870	should request a prorated refund from the previous
871	871	participating school to be deposited back into the ESA of the
872	872	participating student.
873	873	(12) Require a surety bond for education service
874	874	providers receiving more than one hundred thousand dollars
875	875	($100,000) in ESA funds.
876	876	(13) Deposit funds into the ESA of a participating
877	877	student pursuant to this act until any of the following occur:
878	878	a. The department determines that the participating
879	879	student is no longer an eligible recipient.
880	880	b. The department determines that there was substantial
881	881	and intentional misuse of the funds in the ESA for purposes
882	882	other than those permitted by the PRICE Program.
883	883	c. The parent or participating student withdraws from
884	884	the PRICE Program.
885	885	d. The participating student enrolls full-time in his
886	886	or her assigned public school.
887	887	e. The participating student graduates from high school
888	888	or ages out of his or her assigned public school.
889	889	(c) Any information provided to the department by a
890	890	nonpublic school or a parent of a home-based student pursuant
891	891	to this act shall be voluntary, may not be published by the
892	892	department without the written permission of the parent or
893	893	421
894	894	422
895	895	423
896	896	424
897	897	425
898	898	426
899	899	427
900	900	428
901	901	429
902	902	430
903	903	431
904	904	432
905	905	433
906	906	434
907	907	435
908	908	436
909	909	437
910	910	438
911	911	439
912	912	440
913	913	441
914	914	442
915	915	443
916	916	444
917	917	445
918	918	446
919	919	447
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921	921	Page 17
922	922	chief administrative officer of the nonpublic school, and no
923	923	additional reporting requirements or regulations shall be
924	924	added by this act in violation of Sections 16-1-11.1 through
925	925	16-1-11.3, Code of Alabama 1975.
926	926	(d) If appropriate renewal of an ESA is made, the
927	927	department shall make the remaining ESA funds available to the
928	928	participating student for the payment of postsecondary
929	929	education expenses until the participating student becomes 21
930	930	years of age. In the event any of the circumstances in
931	931	subdivision (b)(13) occur, the department shall return unused
932	932	funds to the PRICE ESA Fund.
933	933	Section 8. (a) A parent shall apply to the department
934	934	to establish an ESA for an eligible recipient. The department
935	935	shall accept and approve applications year-round on a first
936	936	come first served basis, and shall establish procedures for
937	937	approving applications and providing notice of approval to
938	938	eligible recipients within 30 days after receipt of a
939	939	completed application.
940	940	(b) The department shall create a standard application
941	941	form for parents to submit to establish the eligibility of
942	942	their student for the PRICE Program and shall ensure that the
943	943	application and all pertinent information is publicly
944	944	available and may be submitted in writing or through other
945	945	means, including the Internet.
946	946	(c) An application for an ESA is confidential and not a
947	947	public record subject to release pursuant to the open records
948	948	law.
949	949	(d) The department shall approve an ESA application if
950	950	449
951	951	450
952	952	451
953	953	452
954	954	453
955	955	454
956	956	455
957	957	456
958	958	457
959	959	458
960	960	459
961	961	460
962	962	461
963	963	462
964	964	463
965	965	464
966	966	465
967	967	466
968	968	467
969	969	468
970	970	469
971	971	470
972	972	471
973	973	472
974	974	473
975	975	474
976	976	475
977	977	476 SB202 INTRODUCEDSB202 INTRODUCED
978	978	Page 18
979	979	all of the following occur:
980	980	(1) The parent applies for an ESA in accordance with
981	981	the application procedures established by the department.
982	982	(2) The student on whose behalf the parent is applying
983	983	is an eligible recipient.
984	984	(3) The parent signs an agreement with the PRICE
985	985	Program committing to all of the following:
986	986	a. He or she has read and understands the information
987	987	on the public website of the department, or a written copy
988	988	regarding participation in the PRICE Program as provided in
989	989	subdivisions (b)(8) and (b)(9) of Section 7, and will comply
990	990	with the requirements of the PRICE Program.
991	991	b. He or she will provide a challenging education for
992	992	the eligible recipient that is appropriate for his or her age
993	993	and skill level.
994	994	c. He or she will only use the funds in the ESA for
995	995	qualifying expenses, will provide accompanying receipts, and
996	996	will ensure that all refunds received are credited to the ESA.
997	997	(e) The parent of a participating student shall submit
998	998	an annual renewal application in accordance with procedures
999	999	adopted by the department.
1000	1000	Section 9. (a) Parents of a participating student shall
1001	1001	agree to use the funds deposited in their student's ESA only
1002	1002	for the following qualifying expenses:
1003	1003	(1) Tuition, textbooks, and fees at education service
1004	1004	providers and online learning programs.
1005	1005	(2) Curriculum, textbooks, fees, and other
1006	1006	instructional and enrichment materials including, but not
1007	1007	477
1008	1008	478
1009	1009	479
1010	1010	480
1011	1011	481
1012	1012	482
1013	1013	483
1014	1014	484
1015	1015	485
1016	1016	486
1017	1017	487
1018	1018	488
1019	1019	489
1020	1020	490
1021	1021	491
1022	1022	492
1023	1023	493
1024	1024	494
1025	1025	495
1026	1026	496
1027	1027	497
1028	1028	498
1029	1029	499
1030	1030	500
1031	1031	501
1032	1032	502
1033	1033	503
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1035	1035	Page 19
1036	1036	limited to, materials provided by vendors and associated
1037	1037	online instruction or materials required by either an
1038	1038	instructional program or education service provider.
1039	1039	(3) Services contracted for and provided by a public
1040	1040	school, district school, charter school, or magnet school
1041	1041	including, but not limited to, individual classes and
1042	1042	extracurricular activities and programs.
1043	1043	(4) Extracurricular educational activities including,
1044	1044	but not limited to, athletics, art, music, and literature.
1045	1045	(5) Tutoring services provided by an individual or
1046	1046	tutoring business. Tutoring services may not be paid to an
1047	1047	immediate family member of the participating student.
1048	1048	(6) Tuition, fees, textbooks, instructional materials,
1049	1049	and examination fees for vocational and GED courses at a
1050	1050	career-technical school or alternative education program.
1051	1051	(7) Tuition, fees, and textbooks for summer education
1052	1052	programs and specialized after school education programs,
1053	1053	excluding after school childcare.
1054	1054	(8) Educational services and therapies including, but
1055	1055	not limited to, occupational, behavioral, physical,
1056	1056	speech-language, and audiology therapies and braille
1057	1057	translation.
1058	1058	(9) Tuition, fees, and textbooks for postsecondary
1059	1059	education including, but not limited to, dual enrollment
1060	1060	programs, college-level examination programs (CLEP), and
1061	1061	postsecondary classes.
1062	1062	(10) Computer hardware and other technological devices
1063	1063	that are used primarily to help meet the educational needs of
1064	1064	505
1065	1065	506
1066	1066	507
1067	1067	508
1068	1068	509
1069	1069	510
1070	1070	511
1071	1071	512
1072	1072	513
1073	1073	514
1074	1074	515
1075	1075	516
1076	1076	517
1077	1077	518
1078	1078	519
1079	1079	520
1080	1080	521
1081	1081	522
1082	1082	523
1083	1083	524
1084	1084	525
1085	1085	526
1086	1086	527
1087	1087	528
1088	1088	529
1089	1089	530
1090	1090	531
1091	1091	532 SB202 INTRODUCEDSB202 INTRODUCED
1092	1092	Page 20
1093	1093	a participating student.
1094	1094	(11) Educational software and applications.
1095	1095	(12) School uniforms.
1096	1096	(13) Tuition and fees for preparatory courses and for
1097	1097	nationally standardized assessments, advanced placement
1098	1098	examinations, and examinations related to college or
1099	1099	university admission.
1100	1100	(14) Fees for transportation paid to a fee-for-service
1101	1101	transportation provider for the student to travel to and from
1102	1102	an individual providing qualifying educational services or an
1103	1103	education service provider.
1104	1104	(15) Any other educational expense approved by the
1105	1105	department.
1106	1106	(b) If a parent of a participating student submits an
1107	1107	educational expense that is denied by the department, an
1108	1108	appeal may be made pursuant to Section 13.
1109	1109	(c) Receipt of scholarship funds pursuant to the
1110	1110	Alabama Accountability Act of 2013, Chapter 6D, Title 16, Code
1111	1111	of Alabama 1975, does not impact the receipt of ESA funds by
1112	1112	the parent of a participating student pursuant to this act. An
1113	1113	adjustment, if any, of the Alabama Accountability Act
1114	1114	scholarship funds awarded to a participating student may be
1115	1115	made at the discretion of the scholarship granting
1116	1116	organization under that act.
1117	1117	(d) ESA funds paid for goods and services shall not be
1118	1118	refunded, rebated, or shared with a parent or participating
1119	1119	student in any manner, but shall be credited directly to the
1120	1120	ESA of the student.
1121	1121	533
1122	1122	534
1123	1123	535
1124	1124	536
1125	1125	537
1126	1126	538
1127	1127	539
1128	1128	540
1129	1129	541
1130	1130	542
1131	1131	543
1132	1132	544
1133	1133	545
1134	1134	546
1135	1135	547
1136	1136	548
1137	1137	549
1138	1138	550
1139	1139	551
1140	1140	552
1141	1141	553
1142	1142	554
1143	1143	555
1144	1144	556
1145	1145	557
1146	1146	558
1147	1147	559
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1149	1149	Page 21
1150	1150	(e) Nothing in this act shall prohibit an education
1151	1151	service provider from requesting additional funds from a
1152	1152	parent to cover ordinary student costs related to attendance
1153	1153	at a participating school.
1154	1154	(f) A parent may make payments for the costs of
1155	1155	educational goods and services not covered by the funds in the
1156	1156	ESA of his or her student. However, personal deposits into an
1157	1157	ESA are not permitted.
1158	1158	(g) Funds deposited in the ESA of a participating
1159	1159	student do not constitute taxable income to the parent or
1160	1160	participating student.
1161	1161	Section 10. (a) An education service provider shall do
1162	1162	all of the following:
1163	1163	(1) Apply online to register for participation in the
1164	1164	PRICE Program.
1165	1165	(2) Agree not to refund, rebate, or share ESA funds
1166	1166	with a parent or a participating student in any manner, except
1167	1167	that funds may be remitted or refunded to an ESA in accordance
1168	1168	with procedures established by the department.
1169	1169	(3) Provide a parent of a participating student with a
1170	1170	receipt for all educational qualifying expenses.
1171	1171	(b) Participating nonpublic schools, except home-based
1172	1172	education programs, shall provide parents with information to
1173	1173	make informed decisions. The information shall be regularly
1174	1174	updated at least annually prior to the beginning of each
1175	1175	school year and shall be made available to parents on the
1176	1176	school website or in writing. The information shall include
1177	1177	all of the following:
1178	1178	561
1179	1179	562
1180	1180	563
1181	1181	564
1182	1182	565
1183	1183	566
1184	1184	567
1185	1185	568
1186	1186	569
1187	1187	570
1188	1188	571
1189	1189	572
1190	1190	573
1191	1191	574
1192	1192	575
1193	1193	576
1194	1194	577
1195	1195	578
1196	1196	579
1197	1197	580
1198	1198	581
1199	1199	582
1200	1200	583
1201	1201	584
1202	1202	585
1203	1203	586
1204	1204	587
1205	1205	588 SB202 INTRODUCEDSB202 INTRODUCED
1206	1206	Page 22
1207	1207	(1) The mission statement, values, objectives,
1208	1208	instructional programs, and organizational affiliations of the
1209	1209	nonpublic school.
1210	1210	(2) A comprehensive list of curricula by class and
1211	1211	grade level.
1212	1212	(3) Any student testing requirements, including state
1213	1213	and national testing and mental health or personality surveys
1214	1214	or evaluations, by class and grade level.
1215	1215	(c) In addition to the information provided in
1216	1216	subsection (b), participating nonpublic schools may
1217	1217	voluntarily provide parents with additional information
1218	1218	including, but not limited to:
1219	1219	(1) Extracurricular activities including athletics,
1220	1220	fine arts, field trips, and clubs.
1221	1221	(2) Crisis management safety plans.
1222	1222	(3) Any other additional information the participating
1223	1223	nonpublic school decides to provide.
1224	1224	(d) The provision of information by a participating
1225	1225	nonpublic school to parents pursuant to subsection (b) or
1226	1226	subsection (c) is solely for the purpose of assisting parents
1227	1227	to choose the best education option for their children. This
1228	1228	does not create a mandate or regulation by the state that
1229	1229	would be in violation of Sections 16-1-16.11.1 through
1230	1230	16-11-11.3, Code of Alabama 1975.
1231	1231	(e) A participating nonpublic school may allow the
1232	1232	department, but is not required, to publish information
1233	1233	provided in this section on the PRICE Program portion of the
1234	1234	website of the department.
1235	1235	589
1236	1236	590
1237	1237	591
1238	1238	592
1239	1239	593
1240	1240	594
1241	1241	595
1242	1242	596
1243	1243	597
1244	1244	598
1245	1245	599
1246	1246	600
1247	1247	601
1248	1248	602
1249	1249	603
1250	1250	604
1251	1251	605
1252	1252	606
1253	1253	607
1254	1254	608
1255	1255	609
1256	1256	610
1257	1257	611
1258	1258	612
1259	1259	613
1260	1260	614
1261	1261	615
1262	1262	616 SB202 INTRODUCEDSB202 INTRODUCED
1263	1263	Page 23
1264	1264	Section 11. (a) This act shall not be construed to
1265	1265	interfere with or limit the teaching of religious instruction
1266	1266	by any education service provider, by regulating its creed,
1267	1267	practices, admissions policy, hiring policy, code of conduct
1268	1268	for employees or students, tuition, fees, curriculum, or
1269	1269	policies or practices of any description.
1270	1270	(b) All education service providers shall be given
1271	1271	maximum freedom to provide for the educational needs of
1272	1272	participating students without government control and
1273	1273	participation in the program or receipt of payments from an
1274	1274	ESA shall not limit the independence or autonomy of an
1275	1275	education service provider, make it an agent of the state or
1276	1276	federal government, or make its actions the actions of the
1277	1277	state or federal government.
1278	1278	(c) Nothing in this act shall be construed to expand
1279	1279	the regulatory authority of the state, its officers, or any
1280	1280	school district to impose any additional regulation of
1281	1281	education service providers.
1282	1282	(d) The receipt of ESA funds and participation in the
1283	1283	PRICE Program directly or indirectly by a parent or
1284	1284	participating student and by any education service provider
1285	1285	that is a nonpublic school offering educational instruction in
1286	1286	grades K-12 does not subject the school or individual to
1287	1287	licensure or regulation by the state or any political
1288	1288	subdivision of the state and does not modify or repeal other
1289	1289	sections of state law, including Sections 16-1-11.1 through
1290	1290	16-1-11.3, Code of Alabama 1975, or otherwise affect the
1291	1291	exemption of nonpublic schools from state regulation.
1292	1292	617
1293	1293	618
1294	1294	619
1295	1295	620
1296	1296	621
1297	1297	622
1298	1298	623
1299	1299	624
1300	1300	625
1301	1301	626
1302	1302	627
1303	1303	628
1304	1304	629
1305	1305	630
1306	1306	631
1307	1307	632
1308	1308	633
1309	1309	634
1310	1310	635
1311	1311	636
1312	1312	637
1313	1313	638
1314	1314	639
1315	1315	640
1316	1316	641
1317	1317	642
1318	1318	643
1319	1319	644 SB202 INTRODUCEDSB202 INTRODUCED
1320	1320	Page 24
1321	1321	(e) The receipt of ESA funds or participation pursuant
1322	1322	to this act does not change or remove the exemption and
1323	1323	definition of a church school as provided in Section 16-28-1,
1324	1324	Code of Alabama 1975.
1325	1325	Section 12. (a) A public school or school district that
1326	1326	previously enrolled a participating student shall provide any
1327	1327	education service provider that has enrolled a participating
1328	1328	student with a complete copy of the participating student's
1329	1329	school records, while complying with the Family Educational
1330	1330	Rights and Privacy Act of 1974, 20 U.S.C. § 1232.
1331	1331	(b) A public school or school district may refuse to
1332	1332	provide educational services to a participating student who
1333	1333	resides outside of the school district or may establish a
1334	1334	policy to provide educational service options to out of
1335	1335	district students under certain conditions including, but not
1336	1336	limited to, the payment of reasonable fees for attendance.
1337	1337	(c) A public school that becomes an educational service
1338	1338	provider shall be given maximum flexibility to accommodate
1339	1339	participating students and may create a process and establish
1340	1340	requirements for accepting, selecting, or limiting the number
1341	1341	of allowable participating students who are not assigned to
1342	1342	that public School.
1343	1343	Section 13. (a) The department shall adopt procedures
1344	1344	to ensure that fair processes exist to determine whether a
1345	1345	misuse of the PRICE Program has occurred.
1346	1346	(b) The department shall conduct or contract for the
1347	1347	auditing of individual ESAs and, at a minimum, shall conduct
1348	1348	random audits of ESAs on an annual basis. The department shall
1349	1349	645
1350	1350	646
1351	1351	647
1352	1352	648
1353	1353	649
1354	1354	650
1355	1355	651
1356	1356	652
1357	1357	653
1358	1358	654
1359	1359	655
1360	1360	656
1361	1361	657
1362	1362	658
1363	1363	659
1364	1364	660
1365	1365	661
1366	1366	662
1367	1367	663
1368	1368	664
1369	1369	665
1370	1370	666
1371	1371	667
1372	1372	668
1373	1373	669
1374	1374	670
1375	1375	671
1376	1376	672 SB202 INTRODUCEDSB202 INTRODUCED
1377	1377	Page 25
1378	1378	also conduct audits of individual ESAs where there is evidence
1379	1379	of misuse or other violation of this act.
1380	1380	(c) The department may make any parent or participating
1381	1381	student ineligible for the PRICE Program if there is evidence
1382	1382	of intentional and substantial misuse of ESA funds for
1383	1383	purposes other than permitted by the PRICE Program is
1384	1384	discovered. If a participating student is free from personal
1385	1385	misconduct, that student shall be eligible for an ESA in the
1386	1386	future if placed with a different parent to act on behalf of
1387	1387	the student.
1388	1388	(d) The department shall conduct or contract for audits
1389	1389	of education service providers or any other recipients of ESA
1390	1390	funds where there is evidence of intentional and substantial
1391	1391	misuse of ESA funds or other violations of this act.
1392	1392	(e) The department may bar an education service
1393	1393	provider or other recipient of ESA funds from accepting
1394	1394	payments from any ESA if the department determines that the
1395	1395	education service provider has done either of the following:
1396	1396	(1) Intentionally and substantially misrepresented
1397	1397	information, obtained ESA funds by fraud, or failed to refund
1398	1398	any over payments in a timely manner.
1399	1399	(2) Routinely failed to provide students with promised
1400	1400	educational goods or services.
1401	1401	(f) If the department bars an education service
1402	1402	provider or other recipient of ESA funds from receiving
1403	1403	payments from an ESA, the department shall timely notify each
1404	1404	affected parent and participating student of that decision.
1405	1405	(g) A parent, participating student, education service
1406	1406	673
1407	1407	674
1408	1408	675
1409	1409	676
1410	1410	677
1411	1411	678
1412	1412	679
1413	1413	680
1414	1414	681
1415	1415	682
1416	1416	683
1417	1417	684
1418	1418	685
1419	1419	686
1420	1420	687
1421	1421	688
1422	1422	689
1423	1423	690
1424	1424	691
1425	1425	692
1426	1426	693
1427	1427	694
1428	1428	695
1429	1429	696
1430	1430	697
1431	1431	698
1432	1432	699
1433	1433	700 SB202 INTRODUCEDSB202 INTRODUCED
1434	1434	Page 26
1435	1435	provider, and other recipient of ESA funds may ask the
1436	1436	department to reconsider its decision and appeal any final
1437	1437	decision of the department administratively.
1438	1438	(h) The department may refer suspected cases of
1439	1439	intentional and substantial misuse of ESA funds to the
1440	1440	Attorney General for the purpose of collection or criminal
1441	1441	investigation, or both, if evidence of fraudulent use of ESA
1442	1442	funds is discovered.
1443	1443	Section 14. Nothing in this act shall alter, amend, or
1444	1444	limit the application of the Alabama High School Athletic
1445	1445	Association constitution and bylaws to member schools.
1446	1446	Section 15. (a) A parent may bring suit for any
1447	1447	violation of this act and may raise this act as a claim or
1448	1448	defense in any judicial or administrative proceeding without
1449	1449	regard to whether the proceeding is brought by or in the name
1450	1450	of the state, a private individual, or any other party.
1451	1451	(b) Notwithstanding any other provision of law, an
1452	1452	individual may bring a suit for an actual or threatened
1453	1453	violation of this act and relief may be granted in a judicial
1454	1454	proceeding without regard to whether the individual commencing
1455	1455	the action has sought or exhausted available administrative
1456	1456	remedies.
1457	1457	(c) A prevailing party may recover appropriate relief
1458	1458	including, but not limited to, declaratory or injunctive
1459	1459	relief, compensatory damages, and reasonable attorney fees.
1460	1460	(d) The Attorney General may bring an action to enforce
1461	1461	compliance with this act.
1462	1462	(e) Except as provided in Section 36-1-12, Code of
1463	1463	701
1464	1464	702
1465	1465	703
1466	1466	704
1467	1467	705
1468	1468	706
1469	1469	707
1470	1470	708
1471	1471	709
1472	1472	710
1473	1473	711
1474	1474	712
1475	1475	713
1476	1476	714
1477	1477	715
1478	1478	716
1479	1479	717
1480	1480	718
1481	1481	719
1482	1482	720
1483	1483	721
1484	1484	722
1485	1485	723
1486	1486	724
1487	1487	725
1488	1488	726
1489	1489	727
1490	1490	728 SB202 INTRODUCEDSB202 INTRODUCED
1491	1491	Page 27
1492	1492	Alabama 1975, no liability shall arise on the part of the
1493	1493	department, the state, any school district or public school,
1494	1494	or the board based on the deposit or use of an ESA pursuant to
1495	1495	this act.
1496	1496	(f) Sovereign, governmental, state-agent, qualified
1497	1497	immunities, or any immunities to suit from liability pursuant
1498	1498	to the Constitution of Alabama of 2022, are waived and
1499	1499	abolished to the extent of liability created by this act, and
1500	1500	parties alleged to be responsible for any violation may be
1501	1501	sued in their official capacities.
1502	1502	(g) If any part of this act is challenged in a state
1503	1503	court as violating either the state or federal constitutions,
1504	1504	parents of eligible recipients and participating students
1505	1505	shall be permitted to intervene as of right in the lawsuit for
1506	1506	the purposes of defending the constitutionality of the PRICE
1507	1507	Program.
1508	1508	Section 16. The provisions of this act are severable.
1509	1509	If any part of this act is declared invalid or
1510	1510	unconstitutional, that declaration shall not affect the part
1511	1511	which remains.
1512	1512	Section 17. This act shall become effective immediately
1513	1513	following its passage and approval by the Governor, or its
1514	1514	otherwise becoming law.
1515	1515	729
1516	1516	730
1517	1517	731
1518	1518	732
1519	1519	733
1520	1520	734
1521	1521	735
1522	1522	736
1523	1523	737
1524	1524	738
1525	1525	739
1526	1526	740
1527	1527	741
1528	1528	742
1529	1529	743
1530	1530	744
1531	1531	745
1532	1532	746
1533	1533	747
1534	1534	748
1535	1535	749
1536	1536	750
1537	1537	751