Relating to the Alabama Accountability Act of 2013; to amend Sections 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, a...
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SB 263 — Relating to 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, Code of Alabama 1975; to change the terms failing school and nonfailing school to priority school and qualifying school, respectively; to revise and add definitions; to expand scholarships for eligible students attending nonfailing or qualifying schools; to revise the poverty threshold for determining the qualifications of an eligible student; to provide for the qualifying expenses of eligible students with unique needs; to revise the method of determining the amount of educational scholarship awards; to increase the maximum cumulative amount of tax credits that may be issued each year; to require a scholarship granting organization to maintain a reserve balance and to verify the qualifications of an eligible student with unique needs; and to authorize the Department of Revenue to bar qualifying schools or educational service providers from participating in the program under certain circumstances.
Last action — Enacted as 2023-418
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✓Introduced
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced April 27, 2023. Enacted.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 R).
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Mixed recorded votes
1 passed, 3 failed in recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
Alabama Accountability Act of 2013, revised to change failing to priority school and nonfailing to qualifying school, to make other changes.
Bill Text
What changed in the latest version
1135 added · 1132 removedPlain-language change summary
The revised bill SB 263 updates the terminology used in the Alabama Accountability Act, changing "failing schools" to "priority schools" and "nonfailing schools" to "qualifying schools." It also broadens the scholarship program for students attending these schools and modifies the criteria for eligibility based on family income. This is significant because it aims to ensure more students, especially those with unique needs, can access educational opportunities, which may lead to improved outcomes in their schooling. Additionally, it introduces measures to better regulate the scholarship granting organizations involved in the program.
SB263 ENGROSSEDENROLLED SBKD85-2SBKD85-3 By Senators Chesteen, Sessions, Melson, Williams, Reed, Scofield RFD:
27-Apr-23 2023 Regular Session Page 0 SB263 EngrossedEnrolled 2Enrolled, 4An AAct, BILL3 TO BE ENTITLED AN ACT 9 Relating to the Alabama Accountability Act of 2013;
Sections 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, Page 1 SB263 Engrossed and 16-6D-9 of the Code of Alabama 1975, are amended to read as follows:
Page 1 SB263 Enrolled (1) To further the goals of public education throughout the state, each school system should be able to have maximum possible flexibility to meet the needs of students and the communities within its jurisdiction.
(3) Encourage innovation in education by providing local school systems and school administrators with greater Page 2 SB263 Engrossed control over decisions including, but not limited to, budgetary matters, staffing, personnel, scheduling, and educational programming, including curriculum and instruction.
(4) Provide financial assistance through an income tax credit to a parent who transfers a student from a failing Page 2 SB263 Enrolled priority public school to a nonfailing qualifying public school or nonpublic school of the parent's choice." "§16-6D-4 For the purposes of this chapter, the following terms shall have the following meanings:
The term does not include a lump sum, block grant, or similar payment by a scholarship granting organization to a qualifying school that assigns the responsibility in whole or in part for determining the eligibility of scholarship recipients to the qualifying school Page 3 SB263 Engrossed or any person or entity other than the scholarship granting organization.
A licensed and accredited program or service providing educational services for students with unique needs and approved by the State Page 3 SB263 Enrolled Department of Education.
Is a member of a family whose total annual income the calendar year before he or she receives an educational 95 scholarship under this program does not exceed 185 250 percent of the federal poverty level, the federally recognized threshold for receiving free or reduced priced lunch, as established from time to time by the U.S.
95 2.
provided that if the annual income of the family of a student who has received at least one educational scholarship exceeds 185 250 percent of the federal poverty level, the existing student shall remain eligible to receive educational scholarships until and unless Page 4 SB263 Engrossed the annual income of the family of the student exceeds 275 350 percent of the federal poverty level;
provided, further that no student who has received at least one educational scholarship shall be eligible to receive educational scholarships if the annual income of his or her family exceeds Page 4 SB263 Enrolled 275 350 percent of the federal poverty level.
Page 5 SB263 Engrossed 3.
Resides in Alabama while receiving an educational Page 5 SB263 Enrolled scholarship.
Any nonpublic or private school, including parochial schools, not under the Page 6 SB263 Engrossed jurisdiction of the State Superintendent of Education and the State Board of Education, providing educational services to children.
A nonpublic school provides education to elementary or secondary, or both, students and has notified the Department of Revenue of its intention to participate in the Page 6 SB263 Enrolled scholarship program and comply with the requirements of the scholarship program.
Educational services for an eligible student with Page 7 SB263 Engrossed unique needs from a licensed or accredited practitioner or provider.
Page 7 SB263 Enrolled a.
Page 8 SB263 Engrossed 4.
Page 8 SB263 Enrolled 7.
to 10., inclusive, of paragraph a., the nonpublic school operates Page 9 SB263 Engrossed under the governance of the board of directors or the equivalent thereof of an accredited nonpublic school.
For purposes of the immediately preceding sentence, the term governance shall include, but not be limited to, curriculum oversight, personnel and facility management, and financial Page 9 SB263 Enrolled management.
(2) The list of state laws, regulations, and policies, including rules, regulations, and policies promulgated adopted by the State Board of Education and the State Department of Education, that the local school system is seeking to waive in Page 10 SB263 Engrossed its school flexibility contract.
(b) A local school system is accountable to the state for the performance of all schools in its system, including Page 10 SB263 Enrolled innovative schools, under state and federal accountability requirements.
Except as provided for a failing priority school pursuant to subsection (e), no plan or program submitted by a local board of education may be used Page 11 SB263 Engrossed to deny any right or privilege granted to a new employee pursuant to the Students First Act of 2011.
(d) Any provision of subsection (c) to the contrary notwithstanding, upon recommendation by the local superintendent and approval of the local board of education, a Page 11 SB263 Enrolled priority school shall have the same flexibility provided to a public conversion charter school so long as the priority school shows growth in student assessments.
(f)(g) The State Department of Education shall finalize all school data and the local school system shall seek approval of the local board of education before final Page 12 SB263 Engrossed submission to the State Department of Education and the State Board of Education.
(g)(h) The final innovation plan, as recommended by the local superintendent of education and approved by the local board of education, shall accompany the formal submission of Page 12 SB263 Enrolled the local school system to the State Department of Education.
Page 13 SB263 Engrossed (3) An outline of procedures and necessary steps that a local school system shall follow, upon denial of an original submission, to amend and resubmit an innovation plan and school flexibility contract for approval." "§16-6D-8 Page 13 SB263 Enrolled (a) To provide educational flexibility and state accountability for students in failing priority schools:
The average annual state cost of attendance for a public K-12 student shall be calculated by dividing the state funds appropriated to the Foundation Program pursuant to Section 16-13-231(b)(2) by the total statewide number of pupils in average daily membership during the first 20 scholastic days following Labor Day of the preceding school Page 14 SB263 Engrossed year.
For each student who was enrolled in and attended a failing priority school the previous semester whose parent receives an income tax credit under this section, an amount equal to 20 percent of the average annual state cost of attendance for a public K-12 student during the applicable tax Page 14 SB263 Enrolled year shall be allocated, for as long as the parent receives the tax credit, to the failing priority school from which the student transferred if the student transfers to and remains enrolled in a nonpublic school.
The application process shall include, but not be limited to, certification by the parent that the student was enrolled in or was assigned to attend a failing priority school, certification by the parent that the student Page 15 SB263 Engrossed was subsequently transferred to, and was enrolled and attended, a nonfailing qualifying public school or nonpublic school of the parent's choice, and proof, satisfactory to the Department of Revenue, of the actual cost of attendance for the student at the nonfailing qualifying public school or Page 15 SB263 Enrolled nonpublic school.
(b)(1) The parent of a public school student may request and receive an income tax credit pursuant to this section to reimburse the parent for costs associated with transferring the student from a failing priority school to a Page 16 SB263 Engrossed nonfailing qualifying public school or nonpublic school of the parent's choice, in any of the following circumstances:
By assigned school attendance area, if the student spent the prior school year in attendance at a failing priority school and the attendance of the student occurred Page 16 SB263 Enrolled during a school year in which the designation was in effect.
Notwithstanding the foregoing, as Page 17 SB263 Engrossed long as the student remains enrolled in or assigned to attend a failing priority school, the parent may again transfer the student to a nonfailing qualifying public school or nonpublic school of the parent's choice and request and receive an income tax credit as provided in this section.
Page 17 SB263 Enrolled (4)(c) A local school system, for each student enrolled in or assigned to a failing priority school, shall do all both of the following:
A local school system may accept the student on whatever terms and conditions the system establishes and report the student for purposes of the local school system's funding pursuant to the Foundation Page 18 SB263 Engrossed Program.
Page 18 SB263 Enrolled (7)(f) Students with disabilities Eligible students with unique needs who are eligible to receive services from the local school system under federal or state law, and who participate in the tax credit program, remain eligible to receive services from the local school system as provided by federal or state law.
(9)(h) The State Department of Education shall Page 19 SB263 Engrossed promulgate adopt reasonable rules to effectuate the intent of this subsection.
(c)(i) There is created within the Education Trust Fund a separate account named the Failing Priority Schools Income Page 19 SB263 Enrolled Tax Credit Account.
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(3)Nothing in this section shall be construed to Page 20 SB263 Engrossed authorize the violation of or supersede the authority of any court ruling that applies to the public school, school system, or school district, specifically any federal court order related to the desegregation of the local school system's student population." Page 20 SB263 Enrolled "§16-6D-9 (a)(1) An individual taxpayer who files a state income tax return and is not claimed as a dependent of another taxpayer, a taxpayer subject to the corporate income tax levied by Chapter 18 of Title 40, an Alabama S corporation as defined in Section 40-18-160, or a Subchapter K entity as defined in Section 40-18-1 may claim a credit for a contribution made to a scholarship granting organization.
For purposes of this section, an individual Page 21 SB263 Engrossed taxpayer includes an individual who is a shareholder of an Alabama S corporation or a partner or member of a Subchapter K entity that made a contribution to a scholarship granting organization.
(3) The tax credit may be claimed by a taxpayer subject Page 21 SB263 Enrolled to the Alabama corporate income tax in an amount equal to 100 percent of the total contributions the taxpayer made to a scholarship granting organization for educational scholarships during the taxable year for which the credit is claimed, up to 100 percent of the tax liability of the taxpayer.
A taxpayer making one or more otherwise tax-creditable contributions before the due date, with extensions, of a timely filed 2014 tax return may elect to treat all or a portion of such contributions as applying to and creditable against its 2014 Alabama income tax liability, if the taxpayer properly Page 22 SB263 Engrossed reserves the credit on the website of the Department of Revenue or another method provided by the Department of Revenue.
The amount creditable against the taxpayer's 2014 income tax liability shall be limited to the lesser of the amount so designated or the remaining balance, if any, of the Page 22 SB263 Enrolled cumulative amount of the twenty-five million dollars ($25,000,000) of tax credits available for the 2014 calendar year.
Page 23 SB263 Engrossed b.
Distribute periodic educational scholarship payments Page 23 SB263 Enrolled as checks made out and mailed to or directly deposited with the school where the student is enrolled.
A scholarship granting organization Page 24 SB263 Engrossed may expend up to five percent of its revenue from donations on administrative and operating expenses in the calendar year of the donation or in any subsequent calendar year.
Ensure that scholarship funds on hand at the beginning of a calendar year are expended on educational Page 24 SB263 Enrolled scholarships within three calendar years.
With respect to first time educational scholarship recipients, scholarship granting organizations shall give priority to eligible students who are zoned to attend a priority school over eligible students who are not zoned to attend a priority Page 25 SB263 Engrossed school.
Page 25 SB263 Enrolled i.k.
The total number and total dollar amount of educational scholarships awarded and funded during the previous academic year, the total number and total dollar amount of educational scholarships awarded and funded during Page 26 SB263 Engrossed the previous academic year for students qualifying for the federal free and reduced-price lunch program, and the percentage of first-time recipients of educational scholarships who were enrolled in a public school during the previous academic year.
Page 26 SB263 Enrolled l.n.
Ensure that educational scholarships are provided in a manner that does not discriminate based on the gender, race, or disability status of the scholarship applicant or his Page 27 SB263 Engrossed or her parent.
To ensure compliance with the immediately preceding Page 27 SB263 Enrolled sentence, the local board of education for the county or municipality in which an eligible student applying for an educational scholarship resides, upon written request by a parent, shall provide written verification that a particular address is in the attendance zone of a specified public school.
Any provision of this section to the contrary notwithstanding, once an eligible student receives an educational scholarship under this program, scholarship funds may be made available to the student for educational scholarships until the student graduates from high school or reaches 19 years of age, regardless of whether the student is zoned to attend a failing Page 28 SB263 Engrossed priority school, subject to the income eligibility requirements of paragraph (5)b.
An eligible student who enrolls in a public school or public school program is considered to have terminated his Page 28 SB263 Enrolled or her participation in the program.
Submit to the Department of Revenue annual verification that none of its actions or policies restricts a parent's educational choice by limiting or prohibiting the enrollment of eligible students in a qualifying school if those eligible students received educational scholarships from Page 29 SB263 Engrossed other scholarship granting organizations.
Page 29 SB263 Enrolled 1.
A qualifying school, private tutor, or other Page 30 SB263 Engrossed educational service provider may not refund, rebate, or share a student's scholarship with a parent or the student in any manner.
(c)(1) Each scholarship granting organization shall annually collect and submit to the Department of Revenue with Page 30 SB263 Enrolled the annual report required by paragraph k.
Any qualifying nonpublic school failing to timely provide such annual verification shall be prohibited from Page 31 SB263 Engrossed participating in the scholarship program.
copies of the written verifications it receives from each qualifying nonpublic Page 31 SB263 Enrolled school.
An eligible student with unique needs for whom standardized testing is not appropriate, as outlined in his or her individualized education plan (IEP), is exempt from the Page 32 SB263 Engrossed requirements of this subparagraph.
Provide the parents of each student who was tested Page 32 SB263 Enrolled with a copy of the results of the tests on an annual basis, beginning with the first year of testing.
Page 33 SB263 Engrossed b.
Routinely failed to comply with the accountability Page 33 SB263 Enrolled standards established in this chapter.
The independent research organization shall report to the Department of Revenue every other year on the learning Page 34 SB263 Engrossed gains of students receiving educational scholarships and the report shall be aggregated by the grade level, gender, family income level, number of years of participation in the tax credit scholarship program, and race of the student receiving an educational scholarship.
The report shall also include, to Page 34 SB263 Enrolled the extent possible, a comparison of the learning gains of students participating in the tax credit scholarship program to the statewide learning gains of public school students with socioeconomic and educational backgrounds similar to those students participating in the tax credit scholarship program.
The biennial report shall not disaggregate data to a Page 35 SB263 Engrossed level that could identify qualifying schools participating in the tax credit scholarship program or disclose the academic level of individual students.
is submitted to the Department of Revenue, it Page 35 SB263 Enrolled shall be submitted to the Chair of the Senate Education Policy Committee and the Chair of the House Education Policy Committee.
991 (2) The Department of Revenue shall provide a standardized format for a receipt to be issued by a scholarship granting organization to a taxpayer to indicate the value of a contribution received.
The Department of Revenue shall require a taxpayer to provide a copy of the 991 receipt when claiming the tax credit pursuant to this section.
(5) The Department of Revenue may bar a scholarship granting organization or a qualifying school from participating in the tax credit scholarship program if the Department of Revenue establishes that the scholarship granting organization or the qualifying school has Page 36 SB263 Engrossed intentionally and substantially failed to comply with the requirements in subsection (b) or subsection (c).
(6) If the Department of Revenue decides to bar a scholarship granting organization or a qualifying school from the tax credit scholarship program, the Department of Revenue Page 36 SB263 Enrolled shall notify affected educational scholarship students and their parents of the decision as quickly as possible.
(4) The amount of a scholarship awarded a student to Page 37 SB263 Engrossed attend a nonpublic school may not exceed the total sum of tuition and mandatory fees normally charged a student to attend the nonpublic school for the same attendance period.
The amount of a scholarship awarded a student to attend a public school may not exceed the total state appropriation Page 37 SB263 Enrolled provided for a student to attend the public school for the same attendance period.
(3) Nothing in this section shall be construed to Page 38 SB263 Engrossed authorize the violation of or supersede the authority of any court ruling that applies to the public school, school system, or school district, specifically any federal court order related to the desegregation of the local school system's student population.
Page 38 SB263 Enrolled (h) Nothing in this chapter shall affect or change the athletic eligibility rules of student athletes governed by the Alabama High School Athletic Association or similar association." Section 2.
Page 39 SB263 EngrossedEnrolled Senate________________________________________________ ReadPresident forand thePresiding firstOfficer timeof andthe referredSenate ................27-Apr-23________________________________________________ toSpeaker of the SenateHouse committeeof onRepresentatives FinanceSB263 andSenate Taxation23-May-23 EducationI Readhereby forcertify that the secondwithin timeAct andoriginated placedin ................11-May-23and onpassed the calendar:Senate, as amended.
1 amendment Read for the third time and passed ................23-May-23 as amended Yeas 26 Nays 7 Abstains 0 Patrick Harris, Secretary.
PageHouse 40of Representatives Passed:
31-May-23 By:
Senator Chesteen Page 40
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Amendments
2 amendmentsClick Show changes on an amendment above to see how it modifies the bill.
Action History
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Enrolled
Sponsors
- Donnie Chesteen · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 139 not signed on · 32 voted No
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (139)
139 members have not signed on to this bill.
Show all 139 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 8 | 2 | 0 | 0 |
| R | 132 | 2 | 0 | 8 |
| D | 6 | 40 | 0 | 6 |
| Total | 146 | 44 | 0 | 14 |
| % of votes cast | 72% | 22% | 0% | 7% |
How each member voted (204)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 24 | 0 | 0 | 1 |
| D | 0 | 7 | 0 | 1 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 25 | 7 | 0 | 2 |
| % of votes cast | 74% | 21% | 0% | 6% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Nay |
| Kirk Hatcher | D | Nay |
| Linda Coleman-Madison | D | Nay |
| Merika Coleman | D | Nay |
| Robert Stewart | D | Nay |
| Rodger M. Smitherman | D | Nay |
| Vivian Davis Figures | D | Nay |
| William M. Beasley | D | Not Voting |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Yea |
| Clyde Chambliss | R | Yea |
| Dan Roberts | R | Yea |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Yea |
| Garlan Gudger | R | Yea |
| Gerald H. Allen | R | Yea |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Yea |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Yea |
| Larry Stutts | R | Yea |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Not Voting |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 21 | 3 | 0 | 1 |
| D | 0 | 6 | 0 | 2 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 22 | 9 | 0 | 3 |
| % of votes cast | 65% | 26% | 0% | 9% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Nay |
| Kirk Hatcher | D | Nay |
| Linda Coleman-Madison | D | Nay |
| Merika Coleman | D | Nay |
| Robert Stewart | D | Nay |
| Rodger M. Smitherman | D | Nay |
| Vivian Davis Figures | D | Not Voting |
| William M. Beasley | D | Not Voting |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Nay |
| Clyde Chambliss | R | Yea |
| Dan Roberts | R | Yea |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Yea |
| Garlan Gudger | R | Nay |
| Gerald H. Allen | R | Yea |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Yea |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Yea |
| Larry Stutts | R | Nay |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Not Voting |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 23 | 1 | 0 | 1 |
| D | 2 | 5 | 0 | 1 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 26 | 6 | 0 | 2 |
| % of votes cast | 76% | 18% | 0% | 6% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Nay |
| Kirk Hatcher | D | Yea |
| Linda Coleman-Madison | D | Yea |
| Merika Coleman | D | Nay |
| Robert Stewart | D | Nay |
| Rodger M. Smitherman | D | Nay |
| Vivian Davis Figures | D | Nay |
| William M. Beasley | D | Not Voting |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Yea |
| Clyde Chambliss | R | Yea |
| Dan Roberts | R | Yea |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Yea |
| Garlan Gudger | R | Yea |
| Gerald H. Allen | R | Yea |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Yea |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Yea |
| Larry Stutts | R | Nay |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Not Voting |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
Subjects
Frequently asked questions
- What does SB 263 do?
- Alabama Accountability Act of 2013, revised to change failing to priority school and nonfailing to qualifying school, to make other changes.
- Who sponsors SB 263?
- SB 263 is sponsored by Donnie Chesteen (R).
- What is the current status of SB 263?
- This bill has been enacted into law. Introduced April 27, 2023. Enacted.
- Where can I track SB 263?
- Track SB 263 free on One Click Politics — get push/email alerts when it moves.
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