SB202 Alabama 2023 Session

Summary

Primary Sponsor

Larry StuttsSenator

Republican

Session

Regular Session 2023

Title

Relating to education; to establish the Parental Rights in Children's Education (PRICE) Act relating to K-12 education; to secure the fundamental constitutional rights of parents to direct the education of their children; to create the PRICE Program; to establish a three-year phase-in period; to provide definitions; to establish the roles and responsibilities of the Parent Advisory Board, the Commissioner of Revenue, and the Department of Revenue; to create a process for granting education savings accounts; to establish funding mechanisms for the costs of education savings accounts and the administration of the program; to specify qualified expenses; to create requirements for education service providers; to establish an auditing, denial, and appeal mechanism for expenses, parents, participating students, and education service providers; to provide safeguards against any additional state control over or interference with nonpublic schools, their students, and their families; and to provide for legal remedies.

Summary

SB202 creates the Parental Rights in Children's Education (PRICE) Act, establishing a three-year, parental-directed education program with education savings accounts (ESAs) while protecting nonpublic school autonomy.

What This Bill Does

The bill creates the PRICE Program and two state funds to finance ESAs and program administration. It defines terms like eligible recipient, participating student, and education service provider, and sets a three-year phase-in for who can participate. It provides for annual ESA deposits to participating students, with an initial amount of $6,900 for 2024-2025 and later adjustments, plus rules for eligible expenses, provider participation, audits, and legal remedies.

Who It Affects

• Parents/guardians of eligible students who may apply for an ESA, manage funds, enroll their children in participating schools, and direct how funds are spent on qualified education expenses.
• Education service providers (including nonpublic, private, parochial, church schools, tutors, and vendors) who may participate in the PRICE Program and receive ESA payments for eligible students, subject to registration, receipts, audits, bonds, and compliance rules.

Key Provisions

• Creates the Parental Rights in Children's Education (PRICE) Program with a three-year phased-in implementation.
• Establishes two state funds: PRICE ESA Fund (to fund ESAs) and PRICE Administration Fund (to cover program administration); funds are appropriated by the Legislature and may carry over year to year.
• Defines key terms: ASSIGNED PUBLIC SCHOOL, PARTICIPATING SCHOOL, PARTICIPATING STUDENT, ESA, QUALIFYING EXPENSES, and other program concepts.
• Initial annual ESA amount is $6,900 for the 2024-2025 school year, adjustable annually based on the Education Trust Fund’s share of the Foundation Program; funds are prorated if a student is funded for less than a full year.
• Phased eligibility: starting in 2024-2025, certain children (e.g., entering kindergarten, those in specific grades, or in the lowest performing 30% of public schools, plus homeless, in foster care, special education, or children of active-duty or reserve military parents or those killed in duty) and their siblings may apply; from 2025-2026, eligibility expands, and by subsequent years any eligible recipient can apply or renew.
• Qualifying expenses list includes tuition, textbooks, curricula, services from education providers, extracurricular activities, tutoring, vocational/ GED courses, postsecondary costs, computer hardware/software, uniforms, transportation, and other department-approved education costs.
• Education service providers must register, provide receipts, and comply with program rules; providers receiving over $100,000 must post a surety bond; funds cannot be deposited personally by parents into ESAs and are not considered taxable income to families.
• Auditing and oversight: the Department conducts audits of ESAs and providers; misused funds can lead to ineligibility or bar from the program; the Attorney General can be involved in enforcement; parents/students may appeal decisions.
• Nonpublic school autonomy is protected; the act explicitly says it does not expand state regulation of nonpublic schools and preserves exemptions for church schools.
• Transfers and portability: rules allow transfer between participating schools at defined times and under hardship conditions; prorated refunds may be issued, and partial-year arrangements are detailed.
• Transparency and access: the Department must publish program information online, inform parents annually, provide a helpline, and ensure confidentiality of ESA applications.
• Legal remedies and accountability: the act allows civil suits for violations, with potential damages and attorney’s fees; liability protections for the state and its agencies are limited to specific contexts.
• Open meetings and governance: the Price Program’s Parent Advisory Board is established with specific member categories and duties, including quarterly meetings and advocacy for parent concerns, with voting and conflict-of-interest rules.

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