HB245: Parent's Choice Act Summary

• Creates the Parent's Choice Program to establish education savings accounts funded at 100% of the prior year's Education Trust Fund Foundation Program share, allowing eligible students to use funds for qualifying educational expenses including tuition, tutoring, curricula, therapies, and online programs.

• Establishes a Parent's Choice Board administered by the State Treasurer with 6 members including the State Finance Director, a representative from the Alabama Disabilities Advocacy Program, and four parent appointees to oversee program administration and compliance.

• Phases in student eligibility beginning July 1, 2022: initially limited to public school students, homeschooled students, and kindergarten entrants; expanded in 2023-2024 to include nonpublic school students with family income up to 200% of federal poverty level; open to all students beginning 2024-2025.

• Requires education savings accounts to be used exclusively for qualified expenses; prohibits refunds or rebates to parents; allows remaining funds to carry over annually upon successful renewal; accounts close when student reaches age 21, completes secondary education, or parent withdraws.

• Authorizes the Board to audit accounts, suspend or bar education service providers for fraud or misrepresentation, and refer suspected fraudulent activity to the Attorney General; restricts state regulatory authority over education service providers beyond program enforcement requirements.