HB694 Alabama 2015 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2015

Title

Education, Education Savings Account program, created

Summary

HB694 would create an Education Savings Account program in Alabama that lets parents use state education funds allocated for their child to pay for an education program of the parents' choosing.

What This Bill Does

The bill creates Education Savings Accounts funded by the state, providing a grant equal to 90% of the district funding a child would have received, to be used for approved educational expenses such as private school tuition, books, tutoring, curricula, online programs, and certain exams. Participation is limited to 1,000 new eligible students per academic year on a first-come, first-served basis, with priority renewal for previously enrolled students, and funds are not taxable to the parent. Private schools and other providers can participate but must meet safety, financial, and reporting requirements, and the program includes oversight, audits, and enforcement provisions to protect funds and ensure proper use.

Who It Affects

• Eligible students and their parents: may receive Education Savings Account grants to cover approved educational expenses; eligibility includes students with certain disabilities (IEP/504), military-related cases, foster/adoptive situations, and others meeting the program's criteria, with participation capped and renewal priority for returning students.
• Participating private schools and education providers: may receive funds to educate eligible students and must comply with health/safety, nondiscrimination, background checks, financial viability demonstrations, receipts for expenses, and annual reporting; they can be barred from the program for noncompliance and must operate with autonomy from state regulation beyond program rules.

Key Provisions

• Establishes the Education Savings Account program, allowing funds that would have been allocated to a student in the resident district to be used for a parent-selected education program, with eligible expenses including tuition, textbooks, tutoring, curriculum, nonpublic online programs, exams, and certain disability services.
• Creates oversight and administration by qualified organizations and state agencies, including quarterly payments, annual audits, background checks, maintaining provider lists, reporting requirements, anti-fraud measures, and administrative fees (6% for the first three years, then 4% for organizations; 1% to the department) to support program operations.

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