The proposed bill, HB 748-FN, establishes a Local Education Freedom Account (EFA) program, enabling school districts to create a framework for parents of eligible students to receive grants from approved scholarship organizations for various educational expenses. The bill introduces a new chapter, Chapter 194-G, which defines key terms such as "eligible student," "education freedom account," and "scholarship organization." Eligible students are defined as residents of participating school districts, aged 5 to 20, who are currently attending public or charter schools, receiving home education, or are kindergarten students. The program allows parents to utilize EFA funds for qualifying expenses, while ensuring that students remain counted in their resident school district's average daily membership. The bill also outlines the application process for parents, requiring annual renewal of agreements with scholarship organizations and prohibiting students from receiving both EFA grants and education tax credit scholarships in the same school year.

Additionally, the bill details the responsibilities of scholarship organizations, including maintaining an updated list of education service providers, ensuring compliance with student privacy laws, and conducting annual audits. It allows scholarship organizations to withhold up to 10% of EFA deposits for administrative costs and mandates the implementation of an electronic payment system. The bill introduces new legal language that permits scholarship organizations to accept gifts and grants for administrative costs and emphasizes non-discrimination based on religious affiliation. It also clarifies that funds received under this program are not taxable income for parents or students. The process for adopting or rescinding Local Education Freedom Accounts within school districts is specified, requiring a petition from registered voters and a 3/5 majority vote for implementation. The fiscal impact of the bill is indeterminable, as it depends on local district decisions and the number of eligible students participating.