The bill HB 748-FN establishes a Local Education Freedom Account (EFA) program, enabling school districts to provide grants to parents of eligible students for various educational expenses. Key definitions are introduced in a new chapter, 194-G, including terms like "eligible student" and "education freedom account." Eligible students are defined as residents of participating districts aged 5 to 20 who have not graduated high school. The bill stipulates that students cannot receive both an EFA grant and an education tax credit scholarship in the same year. It outlines the application process, requiring parents to sign contracts with scholarship organizations, and mandates that funds be used solely for qualifying expenses. If an eligible student moves out of the district, their agreement is terminated, and unspent funds revert to the district.

Additionally, the bill outlines the responsibilities of scholarship organizations, including maintaining a list of education service providers, providing detailed fund usage information to parents, and ensuring students with disabilities remain eligible for services from their resident districts. The funding structure for EFAs is established, requiring local districts to fund accounts at twice the per pupil adequate education grant amount. The bill also includes provisions for the adoption and rescission of EFAs through a petition process and mandates a 3/5 majority vote for such actions. Notably, it prohibits discrimination against education providers based on religious affiliation and ensures that funds received through the program are not taxable income. The act will take effect 60 days after passage.