HB88INTRODUCED
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HB88
LDFRYAA-1
By Representative Yarbrough
RFD: Education Policy
First Read: 06-Feb-24
PFD: 05-Feb-24
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6 LDFRYAA-1 02/02/2024 KMS (L)cr 2024-217
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PFD: 05-Feb-24
SYNOPSIS:
This bill would create the True School Choice
for Alabama Act.
This bill would secure the fundamental
constitutional rights of parents to direct the
education of their children in grades K-12 according to
their faith, beliefs, values, and morals.
This bill would establish the roles and
responsibilities of the Parent Advisory Board, the
Commissioner of Revenue, and the Department of Revenue.
This bill would create and provide for the
funding of the True School Choice ESA Fund and the True
School Choice Administration Fund for the costs of
administrating the True School Choice Program.
This bill would provide for the implementation
and administration of the True School Choice Program
and the use of education savings accounts.
This bill would specify the qualified expenses
that may be paid from an education savings account.
This bill would retain the autonomy of nonpublic
schools and prevent additional state control over or
interference with nonpublic schools, their students,
and families.
This bill would provide for the auditing,
denials, and appeals of the True School Choice Program
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denials, and appeals of the True School Choice Program
and the suspension of parents, participating students,
and education service providers.
This bill would also provide for legal remedies.
A BILL
TO BE ENTITLED
AN ACT
Relating to education; to establish the True School
Choice for Alabama Act relating to K-12 education; to secure
the fundamental constitutional rights of parents to direct the
education of their children; to create the True School Choice
Program; to provide definitions; to establish the roles and
responsibilities of the Parent Advisory Board, the
Commissioner of Revenue, and the Department of Revenue; to
create a process for granting education savings accounts; to
establish funding mechanisms for the costs of education
savings accounts and the administration of the program; to
specify qualified expenses; to create requirements for
education service providers; to establish an auditing, denial,
and appeal mechanism for expenses, parents, participating
students, and education service providers; to provide
safeguards against any additional state control over or
interference with nonpublic schools, their students, and their
families; and to provide for legal remedies.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the True School Choice for Alabama Act.
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the True School Choice for Alabama Act.
Section 2. The Legislature finds and declares all of
the following:
(1) Because education is critical to the well-being of
children, Alabama made the education of all school-age
children residing in this state mandatory and parents
responsible for the school attendance of their children.
(2) Parental involvement is essential for the academic
success and healthy development of children, strong families,
and a prosperous state. Parental involvement must therefore be
strongly valued and supported in the education of their
children. Parents generally know their children best, love
their children most, and from time immemorial have
traditionally been the primary advocates of the best interests
of their children.
(3) Parents have a fundamental constitutional right to
direct the upbringing and education of their children and to
impart to their children their faith, beliefs, values, and
morals through education and by choosing the type of
education, including nonpublic schools, their children
receive.
(4) If a state provides tuition assistance to parents
of children for a nonpublic K-12 education, the state may not
bar those parents from selecting religious schools due to
their religious affiliation or the religious instruction they
provide. Carson v. Makin, 142 S.Ct. 1987 (2022).
(5) A state education funding program that is neutral
on its face and generally available, including religious
schools, does not violate the Establishment Clause of the
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schools, does not violate the Establishment Clause of the
First Amendment to the United States Constitution. Espinosa v.
Montana Department of Revenue, 140 S.Ct. 2246 (2020).
(6) A state education funding program that prohibits
parents from choosing religious schools, simply because they
are religious, violates the rights of parents under the Free
Exercise Clause of the First Amendment to the United States
Constitution. Espinosa v. Montana Department of Revenue, 140
S.Ct. 2246 (2020).
(7) Section 16-1-11.1(5), Code of Alabama 1975,
provides that "regulation by the state, including the State
Department of Education, the State Board of Education, or the
State Superintendent of Education, of any school with a
religious affiliation would be an unconstitutional burden on
religious activities in direct violation of the Alabama
Religious Freedom Amendment and the First Amendment to the
United States Constitution; and further that the State of
Alabama has no compelling interest to burden by license or
regulation nonpublic schools, which include private, church,
parochial, and religious schools offering educational
instruction in grades K-12, as well as home-based schools and
home-schooled students."
(8) This act intends to prevent discrimination against
parents who must pay both tuition and taxes if they choose a
nonpublic education, or who are denied that right because of a
lack of funds, and to prevent violations of the Alabama
Religious Freedom Amendment and both the Establishment Clause
and the Free Exercise Clause of the First Amendment to the
United States Constitution.
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United States Constitution.
Section 3. For the purposes of this act, the following
terms have the following meanings:
(1) ASSIGNED PUBLIC SCHOOL. The school to which an
eligible recipient or participating student is assigned based
on his or her Alabama residential address.
(2) BOARD. The Parent Advisory Board.
(3) COMMISSIONER. The Commissioner of Revenue.
(4) CURRICULUM. A course of study for content areas or
grade levels, including any supplemental materials or
resources required, recommended, or complementary to a course
of study.
(5) DEPARTMENT. The Department of Revenue.
(6) EDUCATION SAVINGS ACCOUNT (ESA). An account in
which funds are deposited by the department for the parent of
a participating student to pay qualifying expenses.
(7) EDUCATION SERVICE PROVIDER. A public or nonpublic
school, organization, vendor, or individual that provides
educational goods and services to participating students.
(8) ELIGIBLE RECIPIENT. A student who is a resident of
this state, a citizen of the United States, and eligible to
enroll in his or her assigned public school.
(9) NONPUBLIC SCHOOL. A nongovernment K-12 school
offering educational instruction. The term includes private
religious, private nonreligious, parochial, virtual,
microschools, and church schools, including home-based
education programs.
(10) PARENT. The biological or adoptive parent, legal
guardian, custodian, or other individual with legal authority
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guardian, custodian, or other individual with legal authority
to act on behalf of an eligible recipient or participating
student.
(11) PARTICIPATING STUDENT. A resident of this state
and a citizen of the United States who is an elementary or
secondary school student and uses ESA funds pursuant to this
act.
(12) QUALIFYING EXPENSES. Educational expenses listed
in Section 8(a) that may be paid for by a parent with ESA
funds on behalf of a participating student.
(13) TRUE SCHOOL CHOICE PROGRAM. The program created by
this act which provides funds for a participating student's
ESA to pay for educational instructional goods and services.
Section 4. (a) The annual ESA amount for each
participating student shall be six thousand nine hundred
dollars ($6,900) for the 2024-2025 school year, and shall be
adjusted annually by the department based on the percentage
change of the Education Trust Fund's share of the Foundation
Program from the prior year, if positive. The amount of
funding for a participating student for less than a full
fiscal year shall be prorated based on the portion of the
fiscal year the student receives funds from an ESA.
(b) The True School Choice ESA Fund is created in the
State Treasury to receive appropriations from the Legislature
for the funding of ESAs as provided by this act. The
Legislature shall make appropriations to this fund in amounts
not to exceed four hundred million dollars ($400,000,000) for
the initial year. In subsequent years, the Legislature shall
make appropriations to this fund in amounts sufficient to
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make appropriations to this fund in amounts sufficient to
fully fund the projected amount of ESA deposits to be made the
proceeding fiscal year. The projected amount of ESA deposits
required shall be the total amount of appropriations required
to fully fund every ESA account for all eligible applicants
the preceding year, plus an additional 10 percent. Any monies
remaining in the fund at the end of a fiscal year shall not
revert but shall remain in the fund and are reappropriated for
the purposes authorized by this act.
(c) Each school year the department shall make periodic
deposits, equaling the total ESA amount, into the ESA of a
participating student beginning no later than August 1. Any
funds remaining in an ESA at the end of a fiscal year may be
carried over to the next fiscal year upon successful renewal
of the ESA or until any of the conditions in Section 6(b)(13)
are met.
(d) The True School Choice Administration Fund is
created in the State Treasury for the administration of the
True School Choice Program by the department. The lesser of
two million dollars ($2,000,000), or three percent of the
amount appropriated each fiscal year to the True School Choice
ESA Fund, shall be transferred each fiscal year from the True
School Choice ESA Fund to the True School Choice
Administration Fund. The expenses incurred by the department
in carrying out this act shall be paid from monies in the True
School Choice Administration Fund. The Legislature may make
additional appropriations to the True School Choice
Administration Fund upon a showing of the need for additional
monies in the administration of the True School Choice
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monies in the administration of the True School Choice
Program. Any monies remaining in the fund at the end of each
fiscal year shall revert to the True School Choice ESA Fund.
(e) No monies shall be withdrawn or expended from the
funds created in this section for any purpose unless the
monies have been appropriated by the Legislature and allocated
pursuant to this act. Any monies appropriated shall be
budgeted and allotted pursuant to the Budget Management Act in
accordance with Article 4, commencing with Section 41-4-80 of
Chapter 4 of Title 41, Code of Alabama 1975, and only in the
amounts provided by the Legislature in the general
appropriations act or other appropriations act.
Section 5. (a) There is created the Parent Advisory
Board. The board shall do all of the following:
(1) Consult with state departments or agencies, and
parents or administrators from the categories of education
options listed in subdivision (b)(4), as appropriate to carry
out these responsibilities.
(2) Review and provide recommendations to the
department on all of the following:
a. The implementation, administration, and improvement
of the True School Choice Program policies, procedures, and
systems.
b. The concerns and complaints of parents of
participating students.
c. Questionable education service providers and other
qualified expenses.
d. Appeals of denied expenses and the barring of
parents and education service providers from the True School
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parents and education service providers from the True School
Choice Program pursuant to Section 13.
(b) The membership of the board shall consist of the
following members:
(1) The commissioner, or his or her designee, shall
serve as chair of the board and shall be a nonvoting member
unless there is a tie.
(2) The Governor, or his or her designee.
(3) The Lieutenant Governor, or his or her designee.
(4) The President Pro Tempore of the Senate and the
Speaker of the House of Representatives shall each appoint
four parents of eligible recipients intending to participate
in the program or of participating students, one from each of
the following four categories, as listed in Sections 16-1-11.2
and 16-1-11.3, Code of Alabama 1975:
a. Private nonreligious and religious schools.
b. Church schools.
c. Parochial schools.
d. Home-based education programs.
(5) The Minority Leader of the Senate and the Minority
Leader of the House of Representatives shall each appoint one
parent of an eligible recipient intending to participate in
the program or of a participating student, which shall be from
one of the four categories listed under subdivision (4).
(c) The appointed members, as provided in subdivisions
(b)(4) and (b)(5), shall initially serve staggered terms of
one, two, or three years as determined by the chair. An
appointment to fill a vacancy shall be made from the
corresponding category by the original appointing authority
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corresponding category by the original appointing authority
for the remainder of the unexpired term. Board members may
serve up to two additional three-year terms thereafter.
(d) A parent may not serve on the board if he or she is
an employee or immediate relative of an employee of the State
Department of Education or provides goods or services to the
state to directly implement or administer the True School
Choice Program.
(e) A board member shall recuse himself or herself from
voting on any issue where he or she has a substantial
financial interest, or other conflict of interest, excluding
the receipt of an ESA for his or her participating student.
(f) A board member may be removed or replaced by the
board at any time pursuant to a two-thirds majority vote of
the membership of the board.
(g) All members of the board shall be citizens of the
United States and legal residents of Alabama during his or her
entire term. Board member designees and parent appointments
shall be selected from qualified individuals who are well
informed on nonpublic education options, acquainted with the
True School Choice Program procedures, and in touch with other
parents who will be using the program.
(h) Members shall serve without compensation. The
department shall pay all reasonable and necessary expenses,
including per diem or actual travel expenses incurred in the
conduct of official duties, from the True School Choice
Administration Fund at the same rate paid to state employees.
(i) The board shall meet in person at least quarterly.
Additionally, at the request of any board member, the board
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Additionally, at the request of any board member, the board
may meet in person or virtually to transact business at any
time.
(j) A majority of the members of the board shall
constitute a quorum for the transaction of business, unless
otherwise provided in this section.
(k) A vice chair shall be selected by a majority of the
entire membership of the board and shall preside over meetings
in the absence of the chair.
(l) The board is subject to the Alabama Open Meetings
Act, Chapter 25A of Title 36, Code of Alabama 1975, and the
Open Records Law, Article 3, commencing with Section 36-12-40,
of Chapter 12 of Title 36, Code of Alabama 1975.
Section 6. (a) Rules, policies, and procedures adopted
by the department to implement and administer this act shall
do all of the following:
(1) Avoid bureaucracy or prescriptive mandates and may
not unnecessarily burden parents or education service
providers offering educational instruction goods and services.
(2) Value, enable, and support parental involvement.
(3) Encourage education service providers offering
educational instruction goods and services to provide parents
and participating students with a broad array of educational
instruction options.
(4) Not subject nonpublic schools to additional
regulation or licensing.
(b) In addition to any other duty, obligation, or
authority provided in this act, the department shall do all of
the following:
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the following:
(1) Execute contracts and other instruments for
necessary goods, services, and office space, employ necessary
personnel, and engage the services of private consultants,
auditors, counsel, managers, and other professionals or
organizations as needed for the implementation and
administration of the True School Choice Program.
(2) Contract with financial organizations as account
depositories and managers.
(3) Not place True School Choice Program funds in high
risk, long-term financial instruments. Any earned interest
shall be returned to the ESA of the participating student.
(4) Implement a commercially viable, cost-effective,
and parent friendly system for direct payments from and
refunds to ESAs for qualified expenses by electronic or online
funds transfer, which assist in the administering of the True
School Choice Program, automate reconciliation, and provide
easy access to data for audits while reducing the risk of
fraud, waste, and abuse. An ESA may not be reduced for
electronic payment fees or any other costs associated with the
payment and refund system.
(5) Adopt a registration application and process for
approving participating students and education service
providers.
(6) Assist a participating student in the following
manner: If an education service provider requires partial
payment of tuition or fees before the start of the school year
to reserve space for a participating student, the partial
payment may be paid by the department before the start of the
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payment may be paid by the department before the start of the
school year in which the ESA is awarded and deducted from a
subsequent ESA deposit. If a parent decides not to use the
education service provider, the partial reservation payment
shall be returned to the department and credited to the ESA of
the participating student.
(7) Make periodic deposits, equaling the total ESA
amount, into the ESA of a participating student pursuant to
Section 4(c).
(8) Make information regarding the True School Choice
Program readily available to the public on the website of the
department. Information on the website may include the ESA
application process, responsibilities of parents, qualifying
expenses for ESA funds, updated lists of education service
providers and their responsibilities, the registration
process, duties of the department or other organizations that
may assist in the administration of the True School Choice
Program, and other pertinent information.
(9) Inform parents of eligible recipients of the
existence of the True School Choice Program by January 1 of
each year through a variety of means. In addition, a summary
of the information provided online pursuant to subdivision (8)
shall be mailed by January 1, for the first three years after
October 1, 2024, and then mailed or emailed to all parents of
eligible recipients who are not parents of a participating
student in the True School Choice Program, by January 1 of
each year thereafter.
(10) Provide a helpline and other means to answer
questions, at a minimum, during normal weekday business hours.
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questions, at a minimum, during normal weekday business hours.
(11) Adopt procedures to provide the least disruptive
process for participating students to transfer between schools
and to leave the True School Choice Program including, but not
limited to, all of the following:
a. When a participating student enrolls as a full-time
student in his or her assigned public school, payments into
the ESA of the participating student shall immediately cease.
However, for ESAs that have been open for at least one full
school year, the ESA shall remain open and active for the
parent to pay qualifying expenses to educate the student from
funds remaining in the ESA. When no funds remain in the ESA of
a student, or the student reaches 21 years of age, the
department shall close the ESA and return any remaining funds
to the True School Choice ESA Fund.
b. If an eligible recipient decides to return to the
True School Choice Program, payments into the existing ESA of
the student may resume if the ESA is still open and active. A
new ESA may be established if the ESA of the student was
closed.
c. A participating student may transfer between schools
only between semesters, unless the school undergoes a
substantial change in operation or the family of the
participating student involuntarily suffers a substantial
hardship, such as moving to another part of the state. In the
event of a hardship, the parent may petition the department to
transfer the participating student to another school and
should request a prorated refund from the previous to be
deposited back into the ESA of the participating student.
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deposited back into the ESA of the participating student.
(12) Require a surety bond for education service
providers receiving more than one hundred thousand dollars
($100,000) in ESA funds.
(13) Deposit funds into the ESA of a participating
student pursuant to this act until any of the following occur:
a. The department determines that the participating
student is no longer an eligible recipient.
b. The department determines that there was substantial
and intentional misuse of the funds in the ESA for purposes
other than those permitted by the True School Choice Program.
c. The parent or participating student, who is 18 years
of age or older, withdraws from the True School Choice
Program.
d. The participating student enrolls full-time in his
or her assigned public school.
e. The participating student graduates from high school
or ages out of his or her assigned public school.
(c) Any information provided to the department by a
nonpublic school or a parent of a home-based student pursuant
to this act shall be voluntary, may not be published by the
department without the written permission of the parent or
chief administrative officer of the nonpublic school, and no
additional reporting requirements or regulations shall be
added by this act in violation of Sections 16-1-11.1 through
16-1-11.3, Code of Alabama 1975.
Section 7. (a) A parent shall apply to the department
to establish an ESA for an eligible recipient to participate
in the True School Choice Program. The department shall accept
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in the True School Choice Program. The department shall accept
and approve applications year-round on a first come, first
served basis, and shall establish procedures for approving
applications and providing notice of approval to eligible
recipients within 30 days after receipt of a completed
application.
(b) The department shall create a standard application
form for parents to submit to establish the eligibility of
their student for the True School Choice Program and shall
ensure that the application and all pertinent information is
publicly available and may be submitted in writing or through
other means, including the Internet.
(c) An application for an ESA is confidential and not a
public record subject to release pursuant to the open records
law.
(d) The department shall approve an ESA application if
all of the following occur:
(1) The parent applies for an ESA in accordance with
the application procedures established by the department.
(2) The student on whose behalf the parent is applying
is an eligible recipient.
(3) The parent signs an agreement with the True School
Choice Program committing to all of the following:
a. He or she has read and understands the information
on the public website of the department, or a written copy
regarding participation in the True School Choice Program as
provided in Section 6(b)(8) and (b)(9), and will comply with
the requirements of the True School Choice Program.
b. He or she will provide a challenging education for
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b. He or she will provide a challenging education for
the eligible recipient that is appropriate for his or her age
and skill level.
c. He or she will only use the funds in the ESA for
qualifying expenses, will provide accompanying receipts, and
will ensure that all refunds received are credited to the ESA.
(e) The parent of a participating student shall submit
an annual renewal application in accordance with procedures
adopted by the department.
Section 8. (a) Parents of a participating student shall
agree to use the funds deposited in their student's ESA only
for the following qualifying expenses:
(1) Tuition, textbooks, and fees at education service
providers and online learning programs.
(2) Curriculum, textbooks, fees, and other
instructional and enrichment materials including, but not
limited to, materials provided by vendors and associated
online instruction or materials required by either an
instructional program or education service provider.
(3) Services contracted for and provided by a public
school, district school, charter school, or magnet school
including, but not limited to, individual classes and
extracurricular activities and programs.
(4) Extracurricular educational activities including,
but not limited to, athletics, art, music, and literature.
(5) Tutoring services provided by an individual or
tutoring business. Tutoring services may not be paid to an
immediate family member of the participating student.
(6) Tuition, fees, textbooks, instructional materials,
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(6) Tuition, fees, textbooks, instructional materials,
and examination fees for vocational and GED courses at a
career-technical school or alternative education program.
(7) Tuition, fees, and textbooks for summer education
programs and specialized after school education programs,
excluding after school childcare.
(8) Educational services and therapies including, but
not limited to, occupational, behavioral, physical,
speech-language, and audiology therapies and braille
translation.
(9) Tuition, fees, and textbooks for postsecondary
education including, but not limited to, dual enrollment
programs, college-level examination programs (CLEP), and
postsecondary classes.
(10) Computer hardware and other technological devices
that are used primarily to help meet the educational needs of
a participating student.
(11) Educational software and applications.
(12) School uniforms.
(13) Tuition and fees for preparatory courses and for
nationally standardized assessments, advanced placement
examinations, and examinations related to college or
university admission.
(14) Fees for transportation paid to a fee-for-service
transportation provider for the participating student to
travel to and from an individual providing qualifying
educational services or an education service provider.
(15) Any other educational expense approved by the
department.
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department.
(b) If a parent of a participating student submits an
educational expense that is denied by the department, an
appeal may be made pursuant to Section 13.
(c) Receipt of scholarship funds by the parent of an
eligible student under the Alabama Accountability Act of 2013,
Chapter 6D, Title 16, Code of Alabama 1975, does not impact
the receipt of ESA funds by the parent of a participating
student pursuant to this act. An adjustment, if any, of the
Alabama Accountability Act scholarship funds awarded to a
participating student may be made at the discretion of the
scholarship granting organization under that act.
(d) ESA funds paid for goods and services shall not be
refunded, rebated, or shared with a parent or participating
student in any manner, but shall be credited directly to the
ESA of the student.
(e) Nothing in this act shall prohibit an education
service provider from requesting additional funds from a
parent to cover ordinary student costs related to attendance
at a public or nonpublic school.
(f) A parent may make payments for the costs of
educational goods and services not covered by the funds in the
ESA of his or her student. However, personal deposits into an
ESA are not permitted.
(g) Funds deposited in the ESA of a participating
student do not constitute taxable income to the parent or
participating student.
Section 9. (a)(1) The department, by rule, may provide
for the registration of certain education service providers
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for the registration of certain education service providers
and may provide those registered education service providers
with an expedited payment process.
(2) The department may contract with a third party to
issue payments to an education service provider on behalf of a
parent of a participating student. Registered education
service providers may benefit from expedited payment.
(3) The department, by rule, may develop and maintain a
system that allows a parent to use a debit card connected to
an ESA account to make payments to an education service
provider on behalf of a participating student.
(b) The department, by rule, shall develop and maintain
a system that allows parents to submit invoices for payment or
receipts for reimbursement for all qualifying expenses and
shall also require parents to submit copies of receipts for
all qualifying expenses paid with ESA funds on behalf of a
participating student within 60 calendar days from the receipt
of purchase. Failure to provide receipts as required by the
department may result in the parent being responsible for the
payment or disqualification of the student from participation
in the True School Choice Program.
(c) An education service provider shall do both of the
following:
(1) Agree not to refund, rebate, or share ESA funds
with a parent or a participating student in any manner, except
that funds may be remitted or refunded to an ESA in accordance
with procedures established by the department.
(2) Provide a parent of a participating student with a
receipt for all educational qualifying expenses.
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receipt for all educational qualifying expenses.
Section 10. (a) All public and nonpublic schools that
receive ESA funds, except home-based education programs, shall
provide parents with information to make informed decisions.
The information shall be regularly updated at least annually
before the beginning of each school year and shall be made
available to parents on the school website or in writing. The
information shall include all of the following:
(1) The mission statement, values, objectives,
instructional programs, and organizational affiliations of the
school.
(2) A comprehensive list of curricula by class and
grade level.
(3) Any student testing requirements, including state
and national testing and mental health or personality surveys
or evaluations, by class and grade level.
(b) In addition to the information provided in
subsection (a), all public and nonpublic schools that receive
ESA funds may voluntarily provide parents with additional
information including, but not limited to:
(1) Extracurricular activities including athletics,
fine arts, field trips, and clubs.
(2) Crisis management safety plans.
(3) Any other additional information the school decides
to provide.
(c) The information provided by a public or nonpublic
school, that receives ESA funds, to parents pursuant to
subsection (a) or subsection (b) is solely for the purpose of
assisting parents to choose the best education option for
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assisting parents to choose the best education option for
their children. This does not create a mandate or regulation
by the state that would be in violation of Sections 16-1-11.1
through 16-11-11.3, Code of Alabama 1975.
(d) A public or nonpublic school that receives ESA
funds may allow the department, but is not required, to
publish information provided in this section on the True
School Choice Program portion of the website of the
department.
Section 11. (a) This act shall not be construed to
interfere with or limit the teaching of religious instruction
by any education service provider by regulating its creed,
practices, admissions policy, hiring policy, code of conduct
for employees or students, tuition, fees, curricula, or
policies or practices of any description.
(b) All education service providers shall be given
maximum freedom to provide for the educational needs of
participating students without governmental control and
participation in the program or receipt of payments from an
ESA shall not limit the independence or autonomy of an
education service provider, make it an agent of the state or
federal government, or make its actions the actions of the
state or federal government.
(c) Nothing in this act shall be construed to expand
the regulatory authority of the state, its officers, or any
school district to impose any additional regulation of
education service providers.
(d) The receipt of ESA funds and participation in the
True School Choice Program directly or indirectly by a parent
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True School Choice Program directly or indirectly by a parent
or participating student and by any education service provider
that is a nonpublic school offering educational instruction in
grades K-12 does not subject the school or individual to
licensure or regulation by the state or any political
subdivision of the state and does not modify or repeal other
sections of state law, including Sections 16-1-11.1 through
16-1-11.3, Code of Alabama 1975, or otherwise affect the
exemption of nonpublic schools from state regulation.
(e) The receipt of ESA funds or participation pursuant
to this act does not change or remove the exemption and
definition of a church school as provided in Section 16-28-1,
Code of Alabama 1975.
Section 12. (a) A public school or school district that
previously enrolled a participating student shall provide any
education service provider that has enrolled a participating
student with a complete copy of the participating student's
school records, while complying with the Family Educational
Rights and Privacy Act of 1974, 20 U.S.C. ยง 1232.
(b) A public school or school district may refuse to
provide educational services to a participating student who
resides outside of the school district or may establish a
policy to provide educational service options to out of
district students under certain conditions including, but not
limited to, the payment of reasonable fees for attendance.
(c) A public school shall be given maximum flexibility
to accommodate participating students and may create a process
and establish requirements for accepting, selecting, or
limiting the number of allowable participating students who
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limiting the number of allowable participating students who
are not assigned to that public School.
Section 13. (a) The department shall adopt procedures
to ensure that fair processes exist to determine whether a
misuse of the True School Choice Program has occurred.
(b) The department shall conduct or contract for the
auditing of individual ESAs and, at a minimum, shall conduct
random audits of ESAs on an annual basis. The department shall
also conduct audits of individual ESAs where there is evidence
of misuse or other violation of this act.
(c) The department may make any parent or participating
student ineligible for the True School Choice Program if
evidence of intentional and substantial misuse of ESA funds
for purposes other than permitted by the True School Choice
Program is discovered. If a participating student is free from
personal misconduct, that student shall be eligible for an ESA
in the future if placed with a different parent to act on
behalf of the student.
(d) The department shall conduct or contract for audits
of education service providers or any other recipients of ESA
funds when the department has probable cause to believe, by a
preponderance of the evidence, that ESA funds have been
misused or other violations of this act have occurred. Audits
shall be conducted at the expense of the department.
(e) The department may bar an education service
provider or other recipient of ESA funds from accepting
payments from any ESA if the department determines, by clear
and convincing evidence, that the education service provider
has done either of the following:
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has done either of the following:
(1) Intentionally and substantially misrepresented
information, obtained ESA funds by fraud, or failed to refund
any overpayments in a timely manner.
(2) Routinely failed to provide students with promised
educational goods or services.
(f) If the department bars an education service
provider or other recipient of ESA funds from receiving
payments from an ESA, the department shall timely notify each
affected parent and participating student of that decision.
(g) A parent, participating student, education service
provider, and other recipient of ESA funds may ask the
department to reconsider its decision and appeal any final
decision of the department administratively.
(h) The department may refer suspected cases of
intentional and substantial misuse of ESA funds to the
Attorney General for the purpose of collection or criminal
investigation, or both, if evidence of fraudulent use of ESA
funds is discovered.
Section 14. Nothing in this act shall alter, amend, or
limit the application of the Alabama High School Athletic
Association constitution and bylaws to member schools.
Section 15. (a) A parent may bring suit for any
violation of this act and may raise this act as a claim or
defense in any judicial or administrative proceeding without
regard to whether the proceeding is brought by or in the name
of the state, a private individual, or any other party.
(b) Notwithstanding any other provision of law, an
individual may bring a suit for an actual or threatened
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individual may bring a suit for an actual or threatened
violation of this act and relief may be granted in a judicial
proceeding without regard to whether the individual commencing
the action has sought or exhausted available administrative
remedies.
(c) A prevailing party may recover appropriate relief
including, but not limited to, declaratory or injunctive
relief, compensatory damages, and reasonable attorney fees.
(d) The Attorney General may bring an action to enforce
compliance with this act.
(e) Except as provided in Section 36-1-12, Code of
Alabama 1975, no liability shall arise on the part of the
department, the state, any school district or public school,
or the board based on the deposit or use of an ESA pursuant to
this act.
(f) Sovereign, governmental, state-agent, qualified
immunities, or any immunities to suit from liability pursuant
to the Constitution of Alabama of 2022, are waived and
abolished to the extent of liability created by this act, and
parties alleged to be responsible for any violation may be
sued in their official capacities.
(g) If any part of this act is challenged in a state
court as violating either the state or federal constitutions,
parents of eligible recipients and participating students may
intervene as of right in the lawsuit for the purposes of
defending the constitutionality of the True School Choice
Program.
Section 16. Any parent who chooses to educate his or
her child outside of a public school and does not participate
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her child outside of a public school and does not participate
in the True School Choice Program may be eligible for a
refundable tax credit for each of those children. The tax
credit shall be equal to half of the amount each child would
be eligible to receive as a participating student under the
True School Choice Program.
Section 17. The provisions of this act are severable.
If any part of this act is declared invalid or
unconstitutional, that declaration shall not affect the part
which remains.
Section 18. This act shall become effective October 1,
2024.
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