1 DRAFT : n : 01/28/2022 : KMS / cr LSA2021-1646

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.

25

26 A BILL

27 TO BE ENTITLED

Page 1
1 AN ACT

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. (a) 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

Page 7
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 (b) The treasurer shall develop, maintain, regularly

12 update, and publish a list of participating schools on the

13 website of the treasurer.

14 Section 6. (a) The program is established to provide

15 the option for a parent to better meet the individual

16 education needs of his or her eligible student. The program

17 shall be operational beginning as soon as possible, but no

18 later than July 1, 2022.

19 (1) Only students who are enrolled in and attending

20 a public school or being home schooled, or entering

21 kindergarten, may apply for participating student status for

22 the 2022-2023 school year.

23 (2) For the 2023-2024 school year, in addition to

24 those students enrolled in and attending public school, being

25 home schooled, or entering kindergarten, any otherwise

26 eligible student, who is enrolled in and attending a nonpublic

27 school and whose family had an adjusted gross income up to 200

Page 8
1 percent of the federal poverty level for the preceding tax

2 year, may apply for participating student status for that

3 school year.

4 (3) Commencing with the 2024-2025 school year, and

5 thereafter, any otherwise eligible student, who is enrolled in

6 and attending a public school, nonpublic school, or is home

7 schooled, may apply for participating student status for the

8 immediately succeeding school year, regardless of income.

9 (b) The board shall create a standard application

10 form that a parent may submit to the treasurer to establish

11 the eligibility of his or her student for the receipt of

12 education savings account funds, to be placed in a personal

13 education savings account to be used for qualifying education

14 expenses on behalf of the eligible recipient as provided for

15 in Section 8. Information about education savings account

16 funds and the application process shall be made available on

17 the website of the treasurer.

18 (c) The treasurer shall make applications available

19 no later than May 1, 2022, and shall begin accepting

20 applications immediately thereafter. The board may update the

21 application as needed. The board shall issue an award letter

22 to eligible recipients within 45 days after receipt of a

23 completed application and all required documentation.

24 (d) The board shall approve an application for an

25 education savings account if all of the following

26 circumstances are satisfied:

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1 (1) The parent of the student submits an application

2 for an education savings account in accordance with the

3 procedures established by rule of the board.

4 (2) The student on whose behalf the parent is

5 applying is an eligible recipient.

6 (3) The parent signs an agreement with the board,

7 promising to do all of the following:

8 a. Provide an education for the eligible recipient

9 in at least the subjects of reading, language, mathematics,

10 science, and social studies.

11 b. Use education savings account funds exclusively

12 for qualifying expenses as provided for in Section 8.

13 c. Comply with the rules and requirements of the

14 program.

15 d. Afford the participating student opportunities

16 for educational enrichment including, but not limited to,

17 organized athletics, subject to the limitations in Section 14,

18 art, music, and literature.

19 (4) The treasurer has confirmed with the department

20 or participating nonpublic school that the student is an

21 eligible recipient. If the department or participating

22 nonpublic school does not respond to the confirmation request

23 of the treasurer within 30 calendar days after the date of

24 receipt, the treasurer shall consider the student an eligible

25 recipient.

26 (e) An application for an education savings account

27 is confidential and not a public record subject to release

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1 pursuant to the open records law, Chapter 12 of Title 36, Code

2 of Alabama 1975.

3 (f) Participation and receipt of scholarship funds

4 pursuant to the Alabama Accountability Act of 2013, Chapter

5 6D, Title 16, Code of Alabama 1975, is supplemental to the

6 receipt of education savings account funds by a participating

7 student pursuant to this act.

8 Section 7. (a) There is created in the State

9 Treasury a special revenue fund designated and known as the

10 Parent's Choice Program Trust Fund. The fund shall be

11 administered by the treasurer and shall consist of funds

12 appropriated by the Legislature in accordance with subsection

13 (b). Any funds appropriated annually to the Parent's Choice

14 Program Trust Fund that remain unexpended on September 30 of

15 each fiscal year, shall be reappropriated annually and used

16 for the purposes authorized by this act.

17 (b) The amount of education savings account funding

18 granted to an eligible recipient on a yearly basis shall be

19 equal to 100 percent of the Education Trust Fund's share of

20 the prior year's Foundation Program Fund as provided in

21 Section 16-13-231(b)(2)g., Code of Alabama 1975, subject to

22 subsection (c). The amount of the funding to an eligible

23 recipient who is awarded funds from an education savings

24 account for less than a full fiscal year shall be prorated

25 based on the portion of the fiscal year the eligible recipient

26 receives funds from an education savings account.

27 Additionally, if sufficient funds are not available to provide

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1 fully for all participating students pursuant to this act

2 during a school year, the treasurer shall prorate all funds on

3 a per capita basis among all participating students.

4 (c) Expenditures from the Parent's Choice Program

5 Trust Fund shall be limited to the purposes set forth in this

6 act. To cover the annual administrative costs of the program,

7 an amount not exceeding five percent of the fund shall be

8 transferred annually to the Parent's Choice Program Expense

9 Fund established in subsection (h). If the number of

10 participating students increases significantly after any

11 fiscal year, the treasurer may request an appropriation from

12 the Legislature to the Parent's Choice Program Expense Fund in

13 an amount equal to the increased administrative costs

14 associated with the increase in education savings accounts.

15 (d) The first deposit of education savings account

16 funds into an eligible recipient's education savings account

17 shall be subject to the execution of the parental agreement

18 required by Section 6. Upon execution of the required parental

19 agreement, and subject to Section 10, one half of the total

20 annually required deposit shall be made no later than August

21 15 of every year into the education savings account of an

22 eligible recipient, and one half of the total annually

23 required deposit shall be made no later than January 15 of

24 every year. Any funds remaining in an education savings

25 account at the end of a fiscal year may be carried over to the

26 next fiscal year upon successful renewal of the education

27 savings account.

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1 (e) Funds deposited in the education savings account

2 of a student do not constitute taxable income to the parent or

3 the participating student.

4 (f) The treasurer shall continue to make deposits

5 into the education savings account of an eligible recipient in

6 accordance with this section unless, and until, any of the

7 following conditions have occurred:

8 (1) The parent of the eligible recipient fails to

9 renew the education savings account or withdraws from the

10 program.

11 (2) The board determines that the student is no

12 longer eligible for education savings account funds.

13 (3) The board suspends or revokes participation in

14 the program for failure to comply with this act.

15 (4) The participating student successfully completes

16 a secondary education program.

17 (5) The participating student reaches 21 years of

18 age.

19 (g) If any of the conditions in subsection (f)

20 occur, the board shall notify the parent that the education

21 savings account of the eligible recipient shall be closed in

22 45 calendar days. If a parent fails to adequately address the

23 condition or conditions upon which closure is based, or does

24 not respond within 30 calendar days after receipt of notice,

25 the board shall close the education savings account and any

26 remaining monies shall be returned to the state.

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1 (h)(1) There is created in the State Treasury a

2 special revenue fund designated and known as the Parent's

3 Choice Program Expense Fund. The expense fund shall consist of

4 monies received pursuant to this section, or any governmental

5 or private grants and any state Education Trust Fund

6 appropriations, if any, for the program. Any funds

7 appropriated annually to the Parent's Choice Program Expense

8 Fund that remain unexpended on September 30 of each fiscal

9 year, shall be reappropriated annually and used for the

10 purposes authorized by this act.

11 (2) All expenses incurred by the treasurer or the

12 board in developing and administering the program shall be

13 payable from the Parent's Choice Program Expense Fund.

14 Section 8. (a) The parent of a participating student

15 shall agree to use the funds deposited in the education

16 savings account of his or her participating student only for

17 the following qualifying expenses to educate the student:

18 (1) Ongoing services provided by a public school

19 district pursuant to Section 9 including, but not limited to,

20 individual classes and extracurricular activities and

21 programs.

22 (2) Tuition or fees, or both, at a participating

23 school.

24 (3) Tutoring services provided by an individual or a

25 tutoring facility. Tutoring services may not be provided by an

26 immediate family member of the participating student.

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1 (4) Fees for nationally standardized tests, advanced

2 placement examinations, any examinations related to college or

3 university admission, and tuition or fees, or both, for

4 preparatory courses for the assessments or exams in the same

5 manner as these fees are paid by the parents of

6 nonparticipating public school students.

7 (5) Tuition or fees, or both, for programs of study

8 or the curriculum of vocational courses, including, but not

9 limited to, courses that lead to an industry recognized

10 credential that satisfies a workforce need.

11 (6) Tuition or fees, or both, for nonpublic online

12 learning programs.

13 (7) Tuition or fees, or both, for alternative

14 education programs.

15 (8) Fees for after school or summer education

16 programs.

17 (9) Educational services and therapies including,

18 but not limited to, occupational, behavioral, physical,

19 speech-language, and audiology therapies.

20 (10) Curriculum.

21 (11) Any other qualified expenses approved by the

22 board.

23 (b) The funds in an education savings account may

24 only be used for educational purposes in accordance with

25 subsection (a). Nothing in this section shall require that a

26 participating student be enrolled in either a private school

27 or nonpublic online school.

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1 (c) Education savings account funds may not be

2 refunded, rebated, or shared with a parent or student in any

3 manner. Any refund or rebate for goods or services purchased

4 with education savings account funds shall be credited

5 directly to the education savings account of a participating

6 student.

7 (d) Nothing in this section shall prohibit the

8 parent of a participating student from making payments for the

9 costs of educational goods and services not covered by the

10 funds in the education savings account of his or her student.

11 Personal deposits into an education savings account are

12 prohibited.

13 Section 9. (a) Before enrolling his or her child in

14 a kindergarten program, a parent may apply for an education

15 savings account on behalf of that child. Every year

16 thereafter, the parent may renew the enrollment of the child

17 in the program pursuant to this section.

18 (b) Annual renewal of the education savings account

19 of an eligible recipient shall be on a date, on or before July

20 15, as annually determined by the board. Notwithstanding any

21 changes in eligibility, a participating student who has

22 previously qualified for an education savings account remains

23 eligible to apply for renewal until one of the conditions

24 provided in subsection (f) of Section 7 occurs. The board

25 shall verify with the department and participating nonpublic

26 schools all of the following information by July 1 of each

27 year:

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1 (1) A list of all active education savings accounts.

2 (2) The resident school district of each

3 participating student.

4 (3) For a participating student who chooses to

5 attend a participating school, annual confirmation of his or

6 her continued attendance at a nonpublic school that complies

7 with all requirements that other nonpublic school students are

8 required to satisfy.

9 (c) During the initial year of operation of the

10 program, on or before July 15, each local superintendent of

11 education shall submit the determinations reported to him or

12 her pursuant to subsection (b) to the department. During

13 subsequent years, the submission date shall be determined by

14 the board.

15 (d) If a parent fails to renew the education savings

16 account of an eligible recipient, the board shall notify the

17 parent that the education savings account of the eligible

18 recipient shall be closed in 45 calendar days. If a parent

19 chooses not to renew or does not respond within 30 calendar

20 days after receipt of notice, the board shall close the

21 education savings account and any remaining monies shall be

22 returned to the state.

23 (e) If an eligible recipient decides to return to

24 the program after failing to renew, he or she shall reapply.

25 (f) The board, in consultation with the State Board

26 of Education, may adopt rules and policies to provide the

27 least disruptive process for participating students who desire

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1 to stop receiving education savings account payments and

2 return full-time to a public school. A participating student

3 may only opt into or out of a participating school program in

4 between semesters, unless the participating school undergoes a

5 substantial change in operation that results in a hardship to

6 the participating student or his or her parent. In the event

7 of a hardship, the parent may petition the board to transfer

8 the participating student to another participating school and

9 may request a refund of any unexpended or prorated monies. The

10 board shall act upon a petition submitted pursuant to this

11 subsection within 30 calendar days after receipt.

12 (g) The board, in consultation with the State Board

13 of Education, may adopt rules and policies for participating

14 students who want to continue to receive services provided by

15 a public school or school district, including individual

16 classes and extracurricular programs The board, in

17 consultation with the department, shall ensure that any public

18 school or school district providing services receives the

19 appropriate pro rata share of the education savings account

20 funds of a student based on the percentage of total

21 instruction provided to the student by the public school or

22 school district. Local boards of education may charge tuition

23 to participating students who enroll for services in a public

24 school from outside of the student's resident school district.

25 Participating students who enroll for services part-time in a

26 public school shall not be included in the number of students

27 in average daily membership used to determine the cost of the

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1 Foundation Program. Nothing in this subsection prohibits a

2 participating student from using the funds deposited in his or

3 her education savings account on both services provided by a

4 public school or school district and other qualifying expenses

5 as provided for in Section 8.

6 Section 10. In addition to the duties, obligations,

7 and authority provided by this act, the board has the

8 following duties, obligations, and authority with respect to

9 the administration of education savings accounts:

10 (1) To maintain an updated list of participating

11 schools and ensure that the list is publicly available through

12 various sources including, but not limited to, the Internet.

13 (2) To provide parents with a written explanation of

14 the allowable uses of education savings account funds, the

15 responsibilities of parents, the duties of the treasurer and

16 the board, and the role of any private financial management

17 firms or other private organizations that the board may

18 contract with to administer the program, or any aspect of the

19 program.

20 (3) To ensure that parents of students with a

21 disability receive notice, that participation in the program

22 is a parental placement under 20 U.S.C. § 1412 of the

23 Individuals with Disabilities Education Act, along with an

24 explanation of the rights that parentally placed students

25 possess under that act and any applicable state law.

26 (4) The board may contract with private

27 organizations to administer the program. This includes, but is

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1 not limited to, private financial management firms to manage

2 education savings accounts.

3 (5) The board shall implement, or contract with a

4 private organization to implement, a commercially viable, cost

5 effective, and parent friendly system for payment for services

6 from education savings accounts to participating schools or

7 education service providers including, but not limited to, the

8 use of debit cards or other electronic or online fund

9 transfers. An education savings account may not be reduced for

10 debit card or electronic payment fees.

11 (6) The board shall seek to implement a commercially

12 viable, cost effective, and parent friendly system for

13 publicly rating, reviewing, and sharing information about

14 participating schools and education service providers, ideally

15 as part of the same system that facilitates the electronic or

16 online funds transfers so as to create a one-stop-shop for

17 parents and participating students.

18 (7) If an education service provider requires

19 partial payment of tuition or fees before the start of the

20 academic year to reserve space for a participating student

21 admitted to the education service provider, the partial

22 payment may be paid before the start of the school year in

23 which the education savings account funds are awarded, and

24 deducted in an equitable manner from subsequent education

25 savings account deposits to ensure adequate funds remain

26 available throughout the school year. If a participating

27 student decides not to use the education service provider, the

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1 partial reservation payment shall be returned to the treasurer

2 by the education service provider and credited to the

3 education savings account of the student.

4 (8) The treasurer may accept gifts and grants from

5 any source to cover administrative costs, to inform the public

6 about the program, or to provide additional funding for

7 education savings accounts. These funds shall be deposited in

8 the Parent's Choice Program Expense Fund.

9 (9) The board may adopt rules, including emergency

10 rules if necessary, to meet timelines provided by this act,

11 that are not inconsistent with this act, and that are

12 necessary for the administration of this act including, but

13 not limited to, all of the following:

14 a. Establishing or contracting for the establishment

15 of a fraud reporting system.

16 b. Policies that require a surety bond for education

17 service providers receiving more than one hundred thousand

18 dollars ($100,000) in education savings account funds.

19 c. Procedures for refunding payments from education

20 service providers back to education savings accounts.

21 d. Procedures for entering into reciprocal

22 agreements with other state education savings account agencies

23 or entities, whether public or private, to recognize and allow

24 education service providers approved in other states to

25 receive payments from education savings accounts under this

26 act.

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1 (10) Any rules or policies adopted by the board

2 should avoid excessive bureaucracy and overly prescriptive

3 mandates and instead focus on easing parental involvement and

4 encouraging education service providers to provide parents and

5 participating students with a broad array of educational

6 options.

7 Section 11. (a) The board may adopt rules for the

8 auditing of individual education savings accounts and shall

9 conduct or contract for the random auditing of individual

10 education savings accounts as needed to ensure compliance with

11 this act and rules adopted pursuant to this act.

12 (b) As part of the auditing process, the board may

13 remove a parent or eligible recipient from the program and

14 close an education savings account for failure to comply with

15 the terms of the parental agreement, failure to comply with

16 applicable laws, failure of the student to remain eligible, or

17 intentional and fraudulent misuse of education savings account

18 funds. The board shall adopt procedures pursuant to the

19 Alabama Procedure Act, Chapter 22, Title 41, Code of Alabama

20 1975, to ensure that a fair process exists to determine the

21 removal of a parent or eligible recipient from the program and

22 provide for the appeal of an ineligibility determination to

23 the board.

24 (c) The board may conduct or contract for the audit

25 of education service providers accepting payments from

26 education savings accounts if the board determines that the

27 education service provider has done any of the following:

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1 (1) Intentionally and substantially misrepresented

2 information or failed to refund any overpayments in a timely

3 manner.

4 (2) Routinely failed to provide students with

5 promised educational goods or services.

6 (d) If the board determines that an education

7 service provider has intentionally and substantially misused

8 education savings account funds, the board may bar the

9 education service provider from continuing to receive

10 payments. The board shall create procedures to ensure that a

11 fair process exists to determine whether an education service

12 provider should be barred from receiving payment from

13 education savings accounts and provide for the appeal of a

14 determination to bar the education service provider to the

15 board. If the board bars an education service provider from

16 receiving payments from education savings accounts, the board

17 shall notify parents and students of its decision as quickly

18 as possible.

19 (e) If the board obtains evidence of potential

20 fraudulent use of education savings account funds, the board

21 may refer suspected cases to the Attorney General for purposes

22 of investigation, collection, and potential criminal

23 investigation.

24 Section 12. (a) To be eligible to accept payments

25 from an education savings account, an education service

26 provider shall do all of the following:

Page 23
1 (1) Submit a notice of intent to participate in the

2 program to the treasurer.

3 (2) Provide participating parents with a receipt for

4 all qualifying education expenses for a participating student.

5 (3) Agree not to refund, rebate, or share education

6 savings account funds with parents or students in any manner,

7 except that funds may be remitted or refunded to an education

8 savings account in accordance with Section 8.

9 (4) Certify that the education service provider will

10 not discriminate on any basis prohibited by 42 U.S.C. § 1981.

11 (5) Agree to require any employee who will have

12 contact with a participating student to submit to a criminal

13 history background check.

14 (6) In the case of a participating school, provide

15 notice of enrollment annually to the local superintendent of

16 education or participating nonpublic school of any student for

17 which tuition is being paid through the program.

18 (b) This act does not limit the independence or

19 autonomy of an education service provider or make the actions

20 of an education service provider the actions of the state.

21 (c) Education service providers shall be given

22 maximum freedom to provide for the educational needs of

23 participating students without governmental control.

24 (d) A participating school or education service

25 provider is not required to alter its creed, practices,

26 admission policy, tuition, fees, hiring policy, or curriculum

27 in order to accept eligible recipients whose parents pay

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1 tuition or fees from an education savings account pursuant to

2 this act. Nothing in this act shall prohibit a participating

3 school from requesting additional funds from a parent to cover

4 ordinary student costs related to attendance at the

5 participating school.

6 (e) This act does not expand the regulatory

7 authority of the state, its officers, or any school district

8 to impose any additional regulation of education service

9 providers beyond those necessary to enforce the requirements

10 of the program.

11 Section 13. (a) The resident school district, school

12 district in which a participating student was last enrolled,

13 or participating nonpublic school, as applicable, shall

14 provide an education service provider that has enrolled the

15 student with a complete copy of the school records of the

16 student, while complying with the Family Educational Rights

17 and Privacy Act of 1974, 20 U.S.C. § 1232.

18 (b) A participating school district may refuse to

19 provide educational services to a participating student who

20 resides outside of the school district or may establish a

21 policy to provide educational services to nonresident students

22 under certain conditions including, but not limited to, the

23 payment of reasonable fees for attendance.

24 Section 14. Transferring participating students and

25 participating schools shall maintain compliance with the

26 constitution and bylaws established by the Alabama High School

27 Athletic Association member schools.

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1 Section 15. (a) In any legal proceeding challenging

2 the application of this act to a participating education

3 service provider, the state bears the burden of establishing

4 that the challenged action, rule, or requirement is necessary

5 and does not impose any undue burden on education service

6 providers.

7 (b) No liability arises on the part of the board,

8 the state, or any local school district based on the award or

9 use of an education savings account pursuant to this act.

10 (c) If any part of this act is challenged in a state

11 court as violating either the state or federal constitution,

12 the parent of any eligible participating student may intervene

13 in the lawsuit for the purposes of defending the

14 constitutionality of this act. For the purposes of judicial

15 administration, a court may limit the number of parents

16 permitted to intervene or require that all parents file a

17 joint brief, so long as they are not required to join any

18 brief filed on behalf of any named state defendant.

19 Section 16. This act shall become effective on the

20 first day of the first month following its passage and

21 approval by the Governor, or its otherwise becoming law.

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