SB437 Alabama 2013 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Session

Regular Session 2013

Title

Accountability Act of 2013, amended to provide that no public or nonpublic school shall be forced to enroll a student pursuant to Act 2013-64 , 2013 Reg. Sess., am'd.

Summary

SB437 would require scholarship granting organizations to be audited like other taxpayers under the Alabama Accountability Act and expands accountability for tax-credit scholarships.

What This Bill Does

The bill amends the Alabama Accountability Act of 2013 to subject scholarship granting organizations to audits by the Department of Revenue. It maintains a tax-credit program for contributions to these organizations, including limits and carryforwards, and adds extensive administrative, financial, and academic accountability requirements for the organizations and participating schools, with oversight and potential penalties for noncompliance. It also sets expectations for how scholarships are administered, tested, reported, and used within Alabama.

Who It Affects

• Scholarship granting organizations: They would be audited like other taxpayers, must meet new administrative and financial reporting requirements, and could be barred from the program for noncompliance.
• Participating nonpublic schools, students, and their families: They must operate in Alabama, comply with health, safety, and nondiscrimination rules, undergo background checks, administer and share test results, ensure scholarship funds are used for scholarships, and meet portability and reporting requirements.

Key Provisions

• Audits: The Department of Revenue may conduct financial reviews or audits of scholarship granting organizations and can bar noncompliant organizations from the program.
• Tax credits: Individuals, married couples, and corporations can claim tax credits for contributions to scholarship granting organizations, equal to certain percentages of tax liability with caps (50% of liability, up to $7,500 for individuals; total annual credits capped at $25,000,000). Credits can be carried forward three years.
• Administrative standards: SGOs must notify DoR of intent to provide scholarships, show 501(c)(3) status, distribute payments to schools, provide receipts to taxpayers, ensure 95% of donation revenue goes to scholarships, and report annual information to DoR.
• Student/financial oversight: SGOs must spend a portion of funds on low-income students, ensure 75% of first-time recipients were not in private school previously, and cooperate on criminal background checks for employees and board members.
• Scholarship portability and use: Scholarships must be portable to different eligible schools and can be prorated if a student transfers mid-year.
• Reporting: SGOs must publicly report detailed financial and scholarship data to DoR annually, including donor totals, number and dollar amount of scholarships, and demographics.
• School compliance: Participating nonpublic schools must meet health/safety codes, occupancy permits if required, nondiscrimination requirements, and conduct background checks on staff.
• Academic accountability: Participating schools must administer standardized tests or recognized tests, cover testing costs with scholarships, provide test results to parents and DoR, and share data on student outcomes and graduation rates.
• Data and privacy: DoR or its designee will collect and publish test results and aggregated student data while safeguarding privacy.
• Effective date: The tax credits and provisions are allowed to be claimed starting with the 2013 tax year, and the act becomes effective immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education