HB84 Alabama 2016 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2016

Title

Education, Education Savings Account program, created

Summary

HB84 would create an Education Savings Account program in Alabama, letting parents use funds that would have gone to their public school for an education chosen by the parent.

What This Bill Does

The state would deposit about 90% of the per-student funding the district would give to a participating student into an Education Savings Account managed by a participating organization. Parents sign an agreement to educate the child in core subjects and not attend a charter school, and they can use the funds for approved expenses like private school tuition, textbooks, tutoring, curriculum, online programs, certain exams, college costs, and other allowable services, with a limit of up to $2,000 per year to a Coverdell or 529 account. The program is limited to 1,000 new participants each year, and the participating student is still counted in the resident district’s enrollment for state aid purposes. Private schools and other providers must meet health, safety, and nondiscrimination rules, undergo background checks, and be subject to audits and potential removal for misuse; oversight is provided by designated organizations and the Department.

Who It Affects

• Eligible students and their families (including those with IEP/504 plans, military-connected children, foster children, and siblings of participants) who would receive an Education Savings Account and use funds for approved educational options.
• Participating private schools, private tutors, and eligible postsecondary institutions that enroll eligible students and receive payments for qualified services.
• Resident public school districts and their funding, since ESA grants reduce the funds paid to districts and ESA students are counted in district enrollment for state aid purposes.
• Organizations that administer Education Savings Accounts (nonprofit groups with 501(c)(3) status) and private financial management firms, subject to background checks, audits, and administrative fees.

Key Provisions

• Creates the Education Savings Account (ESA) program and defines key terms (eligible student, participating school, organization, etc.).
• Eligibility and participation rules: eligible students include those with IEP/504, certain military or foster scenarios, and siblings of participants; parents sign agreements to educate in core subjects and not enroll in charter schools.
• Funding and eligible expenses: the state deposits 90% of the district base funding for each participating student into an ESA; funds may be used for tuition, textbooks, tutoring, curriculum, online programs, certain exams, college costs, and other specified services; up to $2,000 per year may be contributed to Coverdell or 529 accounts; funds must be used for education and cannot be refunded or shared.
• Enrollment and district impact: participating students are counted in resident district enrollment; funds are subtracted from the district’s state aid; program limited to 1,000 new participants per year; priority renewal for existing participants.
• Administration and oversight: private organizations must be non-profit (501(c)(3)), undergo background checks, publish annual compliance reports, administer accounts, verify expenditures, and return unused funds; the Department and organizations may audit accounts and bar providers for rule violations.
• Provider and school requirements: participating private schools must meet health/safety, occupancy, nondiscrimination, and background-check rules; schools must provide receipts for expenses and demonstrate financial viability if receiving large sums; privacy and FERPA protections apply to student records.
• Accountability and reporting: students must take annual testing in math and language arts (with value-added reporting), results and graduation rates are published publicly after three years, and parents complete an annual satisfaction survey.
• Autonomy and state regulation: participating private schools are not state agents and the program does not expand regulatory authority beyond enforcing program rules; schools have significant freedom to meet students’ educational needs within the program.
• Effective date: the program takes effect in the fall semester following passage and governor approval.

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