HB442 Alabama 2023 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2023

Title

To create the Alabama Fits All Scholarship Program; require the State Board of Education to contract with a program manager to administer the program; to authorize the program manager to establish scholarship accounts on behalf of eligible students; to prohibit a program manager from accepting scholarship funds in certain circumstances; to require fiscal safeguards and accountability measures; to require eligible schools and service providers to meet certain standards to be eligible to receive scholarship funds; to authorize the program manager to distribute scholarship funds; to require the State Board of Education to provide limited oversight of the program manager, including an appeal process for the program manager's administrative decisions; to prohibit certain regulations of eligible schools and eligible service providers; to require criminal history background information checks for employees and officers of a program manager; to provide for program funding; and to require the program manager and the board to submit reports on the program to the Legislature.

Summary

HB442 would create the Alabama Fits All Scholarship Program, allowing a contracted program manager to distribute state funds to eligible students for approved education goods and services at eligible schools and providers, with oversight by the State Board of Education.

What This Bill Does

It establishes the Alabama Fits All Scholarship Program and requires the State Board of Education to contract with a program manager to administer it and establish scholarship accounts for eligible students. The program manager would distribute funds to pay for approved expenses from qualifying providers and eligible schools, subject to annual per-student limits and an overall initial funding cap. Eligible students must be K-12 residents, not receive certain other scholarships, not be enrolled in public school while using funds, and must annually submit a portfolio to maintain eligibility; if applications exceed funds, selections are random with defined enrollment priorities. The bill also sets standards for eligible schools and providers, requires background checks, audits, reporting, and an appeals process; it includes safeguards against misuse and penalties, and specifies that scholarship funds are not taxable income to the parent.

Who It Affects

• Eligible students and their families would be able to apply for and receive scholarship accounts to cover approved education expenses, with annual limits, a portfolio requirement to maintain eligibility, and a waitlist/ranking system if funds run short.
• Nonpublic schools and qualifying providers could receive scholarship funds if approved, must meet standards and undergo audits and background checks, are listed as eligible providers or schools, and could lose eligibility if they fail to comply or if ownership changes require reapproval.

Key Provisions

• Creates the Alabama Fits All Scholarship Program and requires the State Board of Education to contract with a program manager to administer it.
• Program manager can establish and maintain scholarship accounts for eligible students to pay for approved scholarship expenses.
• Defines eligible student and eligibility rules (K-12, Alabama resident, not receiving other similar scholarships, annual portfolio to maintain eligibility) and establishes waitlist with random selection when funds are insufficient; outlines enrollment priority.
• Initial funding for the program is capped at $45,000,000 in the first year; annual per-student maximum starts at $6,900 for 2024-25 and increases annually based on a rolling inflation factor; funds are appropriated by the Legislature and are not taxable income to the parent.
• Allows a wide range of scholarship expenses (tuition/fees, tutoring, textbooks, software, devices, transportation up to $750, etc.) and includes rules for partial payments and reimbursements.
• Eligibile nonpublic schools and qualifying providers must meet standards, undergo audits, and pass criminal history background checks; ownership changes require reapplication; providers can be disapproved or barred and must be publicly listed.
• The State Board of Education provides limited oversight, an appeal process for program decisions, and can regulate the program; the program manager must file annual financial audits and reports and face remedies for violations.
• Includes safeguards against fraud or misuse, including suspension or disqualification procedures, potential referral to the Attorney General, and credits repayments back to the scholarship account.
• Prohibits certain regulatory actions on eligible schools/providers beyond this act and requires adherence to data privacy laws; a program handbook and website will provide information to applicants and participants.
• Effective date: the act becomes effective on the first day of the third month after passage; the description in the bill notes March 1, 2024 as a key application start date.

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