HB245 Alabama 2022 Session

Summary

Primary Sponsor

Charlotte Meadows

Republican

Session

Regular Session 2022

Title

Education, education savings accounts, Parent's Choice Program created, membership and duties provided, process for awarding education savings accounts, requirements for education service providers

Summary

HB245 would create the Parent's Choice Act, establishing Education Savings Accounts and a governing board to fund and manage K-12 education options for Alabama students.

What This Bill Does

It creates the Parent's Choice Program and Board to manage ESAs, defines eligible recipients and qualified expenses, and sets up funding from state funds with a dedicated trust and an administrative expense fund. It outlines when students can qualify (with phased-in eligibility beginning in 2022 and expanding to all students by 2024-2025), how applications are processed, and how deposits are made to ESAs. It also establishes auditing, oversight of participating schools and providers, and duties for resident school districts to participate in the program while protecting student privacy.

Who It Affects

• Eligible students (residents) who may receive education savings accounts, with initial eligibility limited to public school students, homeschooled students, or kindergartners, expanding in stages to nonpublic students and then all students.
• Parents/guardians who must apply for and manage the education savings accounts and ensure funds are used for approved educational expenses.
• Participating public or nonpublic schools and education service providers that would receive payments from ESAs and must meet provider requirements, undergo audits, and may be suspended for noncompliance.
• Resident school districts which have certain duties to provide records and services to participating students and may face pro rata funding considerations.
• Local or private entities that may contract with the board to administer the program or provide services, under board-approved rules.

Key Provisions

• Establishes the Parent's Choice Program and the Parent's Choice Board, with defined roles, terms, and duties, including members such as the treasurer, State Finance Director, a representative from the Alabama Disabilities Advocacy Program, and four parent members appointed by the Governor.
• Creates Education Savings Accounts funded by a State Treasury trust fund, with annual deposits equal to 100% of the Education Trust Fund’s prior year's Foundation Program Fund share, prorated for partial-year enrollment, and a separate Parent's Choice Program Expense Fund for administrative costs (up to 5%).
• Sets eligibility and enrollment rules that begin in 2022-2023 with certain groups; expands to nonpublic students in 2023-2024 based on income; and allows all students to participate starting in 2024-2025, with a standard application process and annual renewals.
• Defines qualified expenses that ESAs may cover, including public school services, private school tuition/fees, tutoring, standardized tests and prep courses, vocational programs, online learning, alternative education programs, after-school programs, therapies, and curriculum approved by the board.
• Allows the board to audit ESAs and participating providers, suspend or remove participants or providers for noncompliance or fraud, and refer potential fraud cases to the Attorney General.
• Requires participating schools and providers to meet requirements (receipts, non-discrimination, background checks for staff) and allows private contracting; enables a debit-card/electronic payment system for ESA funds and a public rating/review system for schools/providers.
• Gives resident school districts responsibilities to share student records and may permit nonresident participation with certain conditions, including potential tuition charges and pro rata funding considerations.
• Includes confidentiality protections for ESA applications and outlines appeals and legal framework related to challenges to the act, including the possibility for parents to intervene in constitutional cases.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education