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HB218 Alabama 2023 Session

Updated Feb 26, 2026
High Interest

Summary

Session
Regular Session 2023
Title
Relating to public K-12 education and the Alabama Accountability Act of 2013; to amend Sections 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, and 16-6D-9, as amended by Act 2022-390, 2022 Regular Session, Code of Alabama 1975; to change the designation of a failing school to a fully supported school and the designation of a nonfailing school to a non-fully supported school; and to require the State Board of Education to reflect those changes in terminology when amending or adopting rules relating to the Alabama Accountability Act of 2013.
Summary

HB218 renames the Alabama Accountability Act’s school designations from 'failing' and 'nonfailing' to 'fully supported' and 'non-fully supported' and directs the State Board to use these terms in its rules.

What This Bill Does

It changes the terminology used in the Act and requires the State Board of Education to reflect these changes when amending or adopting rules. It keeps the Act’s income tax credit and scholarship framework, including how credits are calculated and funded, and the option for parents to transfer a student to a qualifying school. It also updates definitions and administrative details for participating schools, scholarships, and oversight to align with the new terms.

Who It Affects
  • Parents of students who would transfer from a fully supported (formerly 'failing') school to a non-fully supported (formerly 'nonfailing') public or nonpublic school, including eligibility for an income tax credit and related transportation considerations.
  • Public and nonpublic schools, local school systems, scholarship granting organizations, and state agencies (State Board of Education and Department of Revenue) that participate in or oversee the Alabama Accountability Act program, which must adopt the new terminology and implement the program's rules, reporting, and oversight.
Key Provisions
  • Terminology changes: renames 'failing school' to 'fully supported school' and 'nonfailing school' to 'non-fully supported school' across the Alabama Accountability Act, with the State Board of Education required to use these terms in any rules or rulemaking.
  • Tax-credit framework: maintains the income tax credit to help parents transfer a student to a non-fully supported school, with credits equal to 80% of the average annual state cost of attendance or the actual cost of attending a qualifying non-fully supported public or nonpublic school (whichever is less), funded from the Education Trust Fund and subject to an annual $30 million cap; credits may be refundable if tax liability is insufficient, and unused credits may be carried forward up to three years.
  • Eligibility and prioritization: the program prioritizes eligible students zoned to attend failing fully supported schools; scholarships are portable to qualifying non-fully supported schools or nonpublic schools, with transportation arrangements handled by local systems under certain conditions.
  • Qualifying schools and accreditation: qualifying nonpublic schools must be accredited within a set period or meet governance requirements; testing and graduation prerequisites apply; schools must maintain websites with program-related information and participate in required reporting.
  • Oversight and reporting: scholarship granting organizations must provide annual financial and program reports, undergo independent testing analyses biennially, meet background check and nondiscrimination requirements, and allow audits; the Department of Revenue and other state entities maintain data reporting and transparency while protecting student privacy.
  • General safeguards and effective date: the act clarifies that participation is voluntary for schools and districts, prohibits charter schools under this chapter, and sets the act’s effective date as the first day of the third month after passage.
AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Bill Actions

H

Introduced and Referred to House Education Policy

H

Read First Time in House of Origin

Bill Text

Documents

Source: Alabama Legislature