SB71 Alabama 2015 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2015

Title

Accountability Act of 2013, revised to clarify intent of educational choice, define academic year, define family, further provide for tax credits, limits amount of administrative and operating expenses paid from revenue, annual reporting to Department of Revenue, Secs. 16-6D-4, 16-6D-9 am'd.

Summary

SB71 expands and tightens Alabama's educational-choice program by boosting scholarships, raising accreditation and reporting standards, and increasing transparency and oversight.

What This Bill Does

It changes how the program works by redefining the academic year, updating who can get scholarships and how long they stay eligible, and requiring accreditation for participating nonpublic schools. It increases the total tax credits available, removes the per-person cap on individual donations, and allows certain pass-through entities to contribute with credits passing to their owners. It imposes stricter rules on how funds are used and reported, requires testing and verification of student eligibility, and adds protections to ensure scholarships are portable, non-earmarked, and prioritized for students from failing schools.

Who It Affects

• Eligible students and their families, who would have expanded access to scholarships, potential changes in eligibility rules, and ongoing eligibility regardless of income once they meet initial criteria, with priority given to first-time recipients from failing schools and portability of funds within the school year.
• Scholarship granting organizations and participating nonpublic schools, which face accreditation deadlines, spending and reporting requirements, administrative expense limits, governance and background-check obligations, financial viability rules, and restrictions on how funds are allocated and reported.

Key Provisions

• Academic year defined as July 1 to June 30.
• Educational scholarships capped at $6,000 (elementary), $8,000 (middle), and $10,000 (high school) per student per academic year.
• Eligible student income rules set with initial thresholds; students maintain eligibility until graduation or age 19, with ongoing eligibility limited by income levels after multiple scholarships (up to 275% of the federal poverty level).
• All participating nonpublic schools must be accredited within three years by specified regional or national accrediting bodies; newly formed schools may partner with accredited schools to receive scholarships.
• Pass-through entities (e.g., Subchapter S corporations, LLCs) may contribute; credits pass through to owners; expands who can claim the credit to include owners of these entities.
• Donors cannot earmark contributions for specific schools or students; no lump-sum block grants to schools.
• Annual tax-credit cap raised to $30,000,000; removal of the $7,500 individual annual credit limit; allowances for pre-filing contributions with credits reserved against 2014 balance and applied to later years.
• Scholarship organizations may use up to 5% of donation revenue for administrative/operating expenses; the rest must fund scholarships.
• Funds on hand at the start of a calendar year must be spent on scholarships by the end of the following academic year; unspent funds go to the At-Risk Student Fund.
• Increased and expanded reporting to the Department of Revenue, including quarterly reports; reports publicly available on the Department’s website; verification of eligibility and zoned status required.
• Priority given to first-time scholarship recipients from failing schools; scholarships portable to any qualifying school; prorated amounts if a student transfers during an academic year.
• Criminal background checks and health/safety compliance required for participating schools and staff; nondiscrimination policies enforced; schools maintain a dedicated website with information about programs and tuition.
• Qualifying schools must verify financial viability if receiving $50,000+ in scholarship funds through a bond or financial information filing.
• Independent analysis of student learning gains required every other academic year, funded proportionally by scholarship donors; results publicly reported with privacy protections.
• Lock-up agreements restricting enrollment from other scholarships prohibited; donor restrictions on enrollment or allocation prohibited.
• Some provisions are retroactive to March 14, 2013; others take effect upon passage and approval, with immediate or later applicability as specified.

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