The proposed bill 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 Chapter 194-G, defining key terms such as "eligible student," "education freedom account," and "scholarship organization." Eligible students must be residents of participating school districts, aged 5 to 20, and can include those attending public schools, chartered public schools, or receiving home education. Parents can use EFA funds for qualifying expenses like tuition and tutoring, while ensuring students remain counted in their resident school district's average daily membership. The bill also outlines the application process for establishing an EFA, prohibits students from receiving both an EFA grant and an education tax credit scholarship in the same year, and mandates annual renewal of agreements with scholarship organizations.

Additionally, the bill introduces new responsibilities for scholarship organizations, including maintaining an updated list of education service providers, ensuring compliance with student privacy laws, and conducting annual audits. It allows organizations to withhold up to 10% of EFA deposits for administrative costs and establishes procedures for auditing EFAs and barring payments to providers in cases of misconduct. The funding structure stipulates that local education freedom accounts be funded by local districts at twice the per pupil adequate education grant, with scholarship amounts recalculated annually. The bill emphasizes non-discrimination against education providers based on religious affiliation and includes provisions for the approval of education service providers, ensuring transparency and accountability in the program. The act is set to take effect 60 days after passage, with the fiscal impact being indeterminable based on local authorizations and student participation.