The bill SB263 amends the Alabama Accountability Act of 2013 by changing the terminology from "failing school" to "priority school" and from "nonfailing school" to "qualifying school." It revises definitions, increases the educational scholarship cap from $6,000 to $10,000 per student per academic year, and raises the income threshold for student eligibility from 185% to 250% of the federal poverty level. The bill also introduces new terms such as "educational service provider" and "eligible student with unique needs," and outlines their qualifications for the program. It increases the maximum cumulative amount of tax credits from $30,000,000 to $40,000,000 and sets conditions for automatic increases to the cap. Additionally, the bill requires scholarship granting organizations to maintain a reserve balance and verify the qualifications of students with unique needs.

The bill also sets forth administrative accountability standards for scholarship granting organizations, including the requirement to report quarterly to the Department of Revenue and to ensure scholarships are awarded without discrimination. It mandates that qualifying schools administering educational scholarships must annually test students in math and language arts, with exemptions for students with unique needs as outlined in their IEPs. The Department of Revenue is given authority to bar schools or providers from the program for non-compliance, and the bill requires an independent research organization to analyze test results biennially. Lastly, the bill provides for an income tax credit for parents of students enrolled in or assigned to attend a priority school to help offset the cost of transferring the student to a qualifying school, and it clarifies that the bill does not affect the athletic eligibility rules of student athletes. The bill will become effective on the first day of the third month following its passage and approval by the Governor.

Statutes affected:
Introduced: 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, 16-6D-9
Engrossed: 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, 16-6D-9
Enrolled: 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, 16-6D-9