HB84 Alabama 2013 Session

Summary

Primary Sponsor

Chad Fincher

Republican

Session

Regular Session 2013

Title

Schools, Accountability Act of 2013, State Board of Education and local boards, procedures for exemption of public schools from state rules, tax credits for families with students in failing schools to attend another public or private school and for scholarship donations

Summary

The Alabama Accountability Act of 2013 creates school flexibility and a tax-credit scholarship system that lets families move students from failing public schools to nonfailing public or private schools, funded by sales tax revenue.

What This Bill Does

It allows local districts to pursue school flexibility contracts and innovation plans to gain flexibility from state laws and improve-school autonomy. It provides an 80% income tax credit (capped at 80% of the average state cost of attendance) for parents who transfer a student from a failing public school to a nonfailing public or nonpublic school, with funds drawn from a new Failing Schools Income Tax Credit Account. It also creates a tax credit program for donations to scholarship granting organizations, with oversight and accountability requirements for participating schools and organizations. The act defines eligibility for students and schools, sets rules for participating nonpublic and qualifying public schools, requires transportation and testing responsibilities, and prohibits the formation of charter schools.

Who It Affects

• Parents of students in failing public schools, who may receive an 80% tax credit to help cover the cost of transferring their child to a nonfailing public or private school.
• Students from failing schools who move to nonfailing public or nonpublic schools, and their families, including transportation and funding considerations.
• Local school systems and boards, which must pursue and implement school flexibility contracts and innovation plans, and oversee participating schools.
• Scholarship granting organizations and the nonpublic schools that participate in the scholarship program, which must meet financial, administrative, and student eligibility requirements.
• Nonpublic schools and qualifying public schools, which may accept scholarship students and must meet specific accreditation, testing, and health/safety standards.
• The Department of Revenue, Comptroller, and State Board of Education, which oversee credits, funding, reporting, and compliance.

Key Provisions

• innovation: Allows creation of innovative schools and school systems, with school flexibility contracts and innovation plans, and requires public input and accessible proposals.
• Flexibility contracts and innovation plans: Local systems must submit intent, resolutions, and assurances, and the State Superintendent of Education must approve or deny within a set period with explanations.
• Failing school definition: Uses criteria like persistently low-performing status, bottom 10% on state tests, grade of F or three consecutive Ds, or designation by the State Superintendent.
• 80 percent tax credit: Provides an income tax credit equal to 80% of the average annual state cost of attendance for a student transferring from a failing to a nonfailing public or nonpublic school, refundable to the extent the credit exceeds tax liability.
• Funding and accounts: Establishes the Failing Schools Income Tax Credit Account in the Education Trust Fund; sales tax proceeds fund the credits annually as needed.
• Scholarship donations: Offers a separate 50% tax credit of tax liability for individuals and corporations donating to qualifying scholarship granting organizations, with a $25 million annual cap.
• Scholarship organization accountability: Requires safety, nondiscrimination, background checks, portability of scholarships, financial audits, and annual reporting to the Department of Revenue.
• Participating schools: Nonpublic and qualifying public schools must meet health, safety, financial viability, and testing/accountability requirements; public accessibility and transparency are emphasized.
• Transportation and implementation: Local systems may be responsible for transportation to nonfailing schools; testing and delivery of services must meet state and federal requirements; charter schools are not created by this act.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education