CA SB1203

Establishes the Education Flex Account (EFA) Trust to provide annual accounts of $8,000 per student ($16,000 for special education students) to attend accredited private schools, with amounts adjusted annually based on state education funding changes.

Implements income eligibility limits for the first four years: $50,000/$100,000 for years 1-2, $100,000/$200,000 for years 3-4, then removes all income limits, making accounts available to all eligible K-12 students enrolled in private schools.

Creates the EFA Trust Board composed of Scholarshare Investment Board members, the Superintendent of Public Instruction, and two governor-appointed representatives from private and parochial schools to administer accounts and disburse funds to eligible schools.

Requires unused funds remaining in accounts on June 30 to be returned to the state for elementary and secondary education, and prohibits private schools from refunding or rebating EFA/SEFA funds to parents or students.

Excludes EFA and SEFA distributions from California gross income for taxable years beginning January 1, 2025, and requires annual reporting on participation rates and income excluded; operative only if a companion Senate Constitutional Amendment is approved by voters on November 5, 2024.