1 SB140
2 214694-2
3 By Senators Marsh, McClendon, Allen, Stutts, Melson, Whatley,
4 Albritton and Barfoot
5 RFD: Education Policy
6 First Read: 01-FEB-22
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8 SYNOPSIS: This bill would create the Parent's Choice
9 Act.
10 This bill would create and provide for the
11 Parent's Choice Program and the membership and
12 duties of the Parent's Choice Board.
13 This bill would provide for the process for
14 creating, funding, and utilizing education savings
15 accounts.
16 This bill would specify which expenses are
17 qualified expenses.
18 This bill would provide for the renewal and
19 administration of education savings accounts.
20 This bill would provide for the auditing of
21 the program and the suspension of education service
22 providers.
23 This bill would also provide for the
24 responsibilities of resident school districts.
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26 A BILL
27 TO BE ENTITLED
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1 AN ACT
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3 To establish the Parent's Choice Act relating to
4 K-12 education; to create the Parent's Choice Program and
5 provide for the membership and duties of the Parent's Choice
6 Board; to provide definitions; to establish the framework and
7 guidelines for education savings accounts; to create and
8 provide for the membership and duties of the Parent's Choice
9 Board; to create a process for awarding education savings
10 accounts; to establish funding mechanisms; to specify
11 qualified expenses; to create a renewal and administration
12 process; to create requirements for education service
13 providers; to establish an auditing mechanism and potential
14 suspension system for education service providers; to
15 establish responsibilities of resident school districts; and
16 to provide for legal proceedings.
17 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
18 Section 1. This act shall be known and may be cited
19 as the Parent's Choice Act.
20 Section 2. For the purposes of this act, the
21 following terms shall have the following meanings:
22 (1) BOARD. The Parent's Choice Board.
23 (2) CURRICULUM. A complete course of study for a
24 particular content area or grade level, including any
25 supplemental materials required by the curriculum.
26 (3) DEPARTMENT. The State Department of Education.
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1 (4) EDUCATION SAVINGS ACCOUNT. An account to which
2 funds are deposited by the treasurer to pay qualifying
3 education expenses of a participating student pursuant to this
4 act.
5 (5) EDUCATION SERVICE PROVIDER. An individual or
6 organization that receives payments from education savings
7 accounts to provide educational goods and services to
8 participating students.
9 (6) ELIGIBLE RECIPIENT. A student who is a resident
10 of this state and satisfies eligibility criteria provided in
11 this act.
12 (7) PARENT. The biological parent or parents,
13 grandparent or grandparents, legal guardian, custodian, or
14 other individual with legal authority to act on behalf of an
15 eligible recipient or participating student.
16 (8) PARTICIPATING SCHOOL. Any public or nonpublic
17 school that provides education to elementary or secondary
18 students, or both, has notified the treasurer of its intention
19 to participate in the program and comply with the requirements
20 of the program, and satisfies the requirements of this act.
21 (9) PARTICIPATING STUDENT. An elementary or
22 secondary school student who receives education savings
23 account funds pursuant to this act.
24 (10) PROGRAM. The Parent's Choice Program.
25 (11) RESIDENT SCHOOL DISTRICT. The county or city
26 school district in which the student resides.
27 (12) TREASURER. The State Treasurer.
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1 Section 3. (a) The program shall be administered by
2 the Parent's Choice Board.
3 (b) The membership of the board shall consist of the
4 following members:
5 (1) The treasurer, or his or her designee.
6 (2) The State Finance Director, or his or her
7 designee.
8 (3) A representative of the Alabama Disabilities
9 Advocacy Program, appointed by the Governor, with the advice
10 and consent of the Senate, who shall serve a term of three
11 years.
12 (4) Four members appointed by the Governor, with the
13 advice and consent of the Senate, who are parents, as defined
14 by this act. The four shall be appointed to initial staggered
15 terms of one, two, or three years, with two being appointed to
16 three-year terms. Thereafter, these appointed members shall
17 serve three-year terms of office and shall be eligible for
18 reappointment.
19 (c) Each member of the board shall be a resident of
20 this state at the time of appointment and during his or her
21 entire term of office. The Governor shall coordinate his or
22 her appointments to assure the board membership is inclusive
23 and reflects the racial, gender, geographic, urban, rural, and
24 economic diversity of the state.
25 (d) A vacancy among appointed members shall be
26 filled by appointment of the Governor, with the advice and
27 consent of the Senate, for the unexpired term.
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1 Appointments made at times when the Senate is not in regular
2 session shall be effective ad interim. Any appointment made by
3 the Governor while the Senate is in regular session shall be
4 submitted to the Senate not later than the third legislative
5 day following the date of the appointment;
6 any appointment made while the Senate is not in regular
7 session shall be submitted not later than the third
8 legislative day following the reconvening of the Legislature
9 in regular session. If the Senate fails to vote on the
10 confirmation of an appointee before adjourning sine die during
11 the regular session in which the name of the appointee
12 is submitted, the appointee is deemed to be confirmed. A
13 member shall serve until the later of the expiration of the
14 term for which he or she was appointed, or the appointment of
15 his or her successor.
16 (e) Members shall serve without compensation. The
17 treasurer may pay all reasonable and necessary expenses,
18 including actual travel expenses, incurred in the conduct of
19 official duties, from the Parent's Choice Program Expense Fund
20 at the same rate paid to state employees.
21 (f) The treasurer, or his or her designee, shall
22 serve as the chair and presiding officer of the board and may
23 provide office space and staff as requested by the board. A
24 vice chair shall be selected by the membership of the board
25 and shall preside over meetings in the absence of the chair.
26 (g) A majority of the members of the board shall
27 constitute a quorum for the transaction of business.
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1 (h) The board shall be subject to the Alabama Open
2 Meetings Act, Chapter 25A of Title 36, Code of Alabama 1975,
3 and the open records law, Chapter 12 of Title 36, Code of
4 Alabama 1975.
5 Section 4. The board may take any action necessary
6 to effectuate this act and to successfully administer the
7 program, subject to applicable state and federal law
8 including, but not limited to, all of the following:
9 (1) Adopt and amend rules pursuant to the Alabama
10 Administrative Procedure Act.
11 (2) Execute contracts and other instruments for
12 necessary goods and services, employ necessary personnel, and
13 engage the services of private consultants, actuaries,
14 auditors, counsel, managers, trustees, and any other
15 contractor or professional needed for rendering professional
16 and technical assistance and advice.
17 (3) Implement the program through the use of
18 financial organizations as account depositories and managers.
19 (4) Develop and impose requirements, policies,
20 procedures, and guidelines to implement and manage the
21 program.
22 (5) Determine whether an expenditure of education
23 savings account funds is or was a qualifying expense to
24 educate a participating student pursuant to Section 8. The
25 board may approve or deny expenditures by a majority vote.
26 (6) Review any appeals made pursuant to subsections
27 (b) and (d) of Section 11.
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1 (7) Establish the method by which funds shall be
2 allocated to pay for administrative costs and assess, collect,
3 and expend administrative fees, charges, and penalties.
4 (8) Authorize the assessment, collection, and
5 retention of fees and charges against the amounts paid into
6 and the earnings on the trust funds by a financial
7 institution, investment manager, fund manager, or other
8 professional managing or investing the trust funds and
9 accounts.
10 (9) Invest and reinvest any of the funds and
11 accounts under the treasurer and control of the board with a
12 financial institution, an investment manager, a fund manager,
13 or other professionals investing the funds and accounts.
14 (10) Solicit and accept gifts, including bequests
15 and other testamentary gifts made by will, trust, or other
16 disposition; grants; loans; aid; and property, real or
17 personal, of any nature and from any source, or participate in
18 any other way in any federal, state, or local governmental
19 programs in carrying out the purposes of this act. The
20 treasurer and board shall use the property received to
21 effectuate the desires of the donor, and shall convert the
22 property received into cash within 180 days after receipt.
23 Section 5. Notification to the treasurer of an
24 intention to participate in the program by a K-12 public
25 school or nonpublic school shall be submitted annually on or
26 before July 1, in writing, on a form provided by the
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1 treasurer. The notification shall include all of the
2 following:
3 (1) A statement detailing the extent of the
4 participation of the public school or nonpublic school.
5 (2) The number of participating students the public
6 school or nonpublic school could accommodate for the
7 immediately succeeding school year.
8 (3) The nondiscriminatory process to be used by the
9 public school or nonpublic school for enrolling participating
10 students.
11 Section 6. (a) The program is established to provide
12 the option for a parent to better meet the individual
13 education needs of his or her eligible student. The program
14 shall be operational beginning as soon as possible, but no
15 later than July 1, 2022.
16 (1) Only students who are enrolled in and attending
17 a public school or being home schooled, or entering
18 kindergarten, may apply for participating student status for
19 the 2022-2023 school year.
20 (2) For the 2023-2024 school year, in addition to
21 those students enrolled in and attending public school, being
22 home schooled, or entering kindergarten, any otherwise
23 eligible student, who is enrolled in and attending a nonpublic
24 school and whose family had an adjusted gross income up to 200
25 percent of the federal poverty level for the preceding tax
26 year, may apply for participating student status for that
27 school year.
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1 (3) Commencing with the 2024-2025 school year, and
2 thereafter, any student may apply for participating student
3 status for the immediately succeeding school year, regardless
4 of income.
5 (b) The board shall create a standard application
6 form that a parent may submit to the treasurer to establish
7 the eligibility of his or her student for the receipt of
8 education savings account funds, to be placed in a personal
9 education savings account to be used for qualifying education
10 expenses on behalf of the eligible recipient as provided for
11 in Section 8. Information about education savings account
12 funds and the application process shall be made available on
13 the website of the treasurer.
14 (c) The treasurer shall make applications available
15 no later than May 1, 2022, and shall begin accepting
16 applications immediately thereafter. The board may update the
17 application as needed. The board shall issue an award letter
18 to eligible recipients within 45 days after receipt of a
19 completed application and all required documentation.
20 (d) The board shall approve an application for an
21 education savings account if all of the following
22 circumstances are satisfied:
23 (1) The parent of the student submits an application
24 for an education savings account in accordance with the
25 procedures established by rule of the board.
26 (2) The student on whose behalf the parent is
27 applying is an eligible recipient.
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1 (3) The parent signs an agreement with the board,
2 promising to do all of the following:
3 a. Provide an education for the eligible recipient
4 in at least the subjects of reading, language, mathematics,
5 science, and social studies.
6 b. Use education savings account funds exclusively
7 for qualifying expenses as provided for in Section 8.
8 c. Comply with the rules and requirements of the
9 program.
10 d. Afford the participating student opportunities
11 for educational enrichment including, but not limited to,
12 organized athletics, subject to the limitations in Section 14,
13 art, music, and literature.
14 (4) The treasurer has confirmed with the department
15 or participating nonpublic school that the student is an
16 eligible recipient. If the department or participating
17 nonpublic school does not respond to the confirmation request
18 of the treasurer within 30 calendar days after the date of
19 receipt, the treasurer shall consider the student an eligible
20 recipient.
21 (e) An application for an education savings account
22 is confidential and not a public record subject to release
23 pursuant to the open records law, Chapter 12 of Title 36, Code
24 of Alabama 1975.
25 (f) Participation and receipt of scholarship funds
26 pursuant to the Alabama Accountability Act of 2013, Chapter
27 6D, Title 16, Code of Alabama 1975, is supplemental to the
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1 receipt of education savings account funds by a participating
2 student pursuant to this act.
3 Section 7. (a) There is created in the State
4 Treasury a special revenue fund designated and known as the
5 Parent's Choice Program Trust Fund. The fund shall be
6 administered by the treasurer and shall consist of funds
7 appropriated by the Legislature in accordance with subsection
8 (b). Any funds appropriated annually to the Parent's Choice
9 Program Trust Fund that remain unexpended on September 30 of
10 each fiscal year, shall be reappropriated annually and used
11 for the purposes authorized by this act.
12 (b) The amount of education savings account funding
13 granted to an eligible recipient on a yearly basis shall be
14 equal to 100 percent of the Education Trust Fund's share of
15 the prior year's Foundation Program Fund as provided in
16 Section 16-13-231(b)(2)g., Code of Alabama 1975, subject to
17 subsection (c). The amount of the funding to an eligible
18 recipient who is awarded funds from an education savings
19 account for less than a full fiscal year shall be prorated
20 based on the portion of the fiscal year the eligible recipient
21 receives funds from an education savings account.
22 Additionally, if sufficient funds are not available to provide
23 fully for all participating students pursuant to this act
24 during a school year, the treasurer shall prorate all funds on
25 a per capita basis among all participating students.
26 (c) Expenditures from the Parent's Choice Program
27 Trust Fund shall be limited to the purposes set forth in this
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1 act. To cover the annual administrative costs of the program,
2 an amount not exceeding five percent of the fund shall be
3 transferred annually to the Parent's Choice Program Expense
4 Fund established in subsection (h). If the number of
5 participating students increases significantly after any
6 fiscal year, the treasurer may request an appropriation from
7 the Legislature to the Parent's Choice Program Expense Fund in
8 an amount equal to the increased administrative costs
9 associated with the increase in education savings accounts.
10 (d) The first deposit of education