SB140 Alabama 2022 Session

Summary

Primary Sponsor

Del Marsh

Republican

Co-Sponsors

Greg AlbrittonGerald H. AllenWill BarfootJim McClendonTim MelsonLarry StuttsTom Whatley

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

SB140 would create the Parent's Choice Act, establishing Education Savings Accounts called Parent's Choice Accounts, a governing board, funding mechanisms, and rules for participating students, schools, and providers in Alabama.

What This Bill Does

It creates the Parent's Choice Program and the Parent's Choice Board, defines key terms, and sets up how education savings accounts are funded and managed. It provides a schedule and conditions for deposits, a cap for administrative costs, and renewal rules. It enumerates qualified expenses that can be paid from accounts, outlines eligibility timelines for students, and establishes auditing and oversight to protect funds and ensure compliance. It also assigns duties to resident school districts and allows the board to contract with private organizations to operate parts of the program.

Who It Affects

• Eligible recipients and their families: Students who may receive education savings account funds, must sign parental agreements, and follow renewal and eligibility rules; deposits and allowed uses are defined, with later-year expansion to all students regardless of income.
• Participating schools and education service providers: Schools and providers that receive payments from education savings accounts, must meet program requirements, provide receipts, undergo audits, and may be suspended or barred for noncompliance; they must notify districts of enrollments and follow background-check rules.

Key Provisions

• Establishes the Parent's Choice Program and the Parent's Choice Board with defined membership, duties, and authority to adopt rules and contract with private organizations.
• Creates the Education Savings Account (Parent's Choice Account) funded by a new Parent's Choice Program Trust Fund, with annual deposits tied to the Education Trust Fund share of the prior year's Foundation Program Fund and a 5% transfer to the Administrative Expense Fund; deposits are scheduled and carryovers are allowed.
• Defines eligibility timelines: 2022-2023 limited to public/home-school/kindergarten; 2023-2024 expands to eligible nonpublic school students with income up to 200% of the federal poverty level; 2024-2025 onward universal eligibility for all students; annual renewals required.
• Sets the list of qualified expenses (tuition, fees, tutoring, standardized tests, college prep, vocational training, online programs, alternative education, after-school programs, therapies, and curriculum) and restricts funds to these education-related uses.
• Requires a parental agreement to use funds for qualified expenses, prohibits refunds to parents, and allows funds to be carried over or prorated if a student does not receive funds for a full year; funds are not taxable income to families.
• Creates a system for payments to schools and providers (including possible debit card or electronic transfers), and requires a publicly available list of participating schools and a rating/review system for providers.
• Imposes auditing and enforcement: the Board may audit individual accounts and providers, remove participants, bar providers, and refer suspected fraud to the Attorney General; provides due process for removals and appeals.
• Outlines district responsibilities, records transfer requirements under FERPA, and allows districts to charge tuition for nonresident students receiving services; requires notices to local superintendents and annual reporting.
• Provides legal framework limiting state liability, clarifies provider autonomy, and allows parental intervention in lawsuits challenging the act’s constitutionality.

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