HB 2504 — STO scholarships; foster care students

2504 eighty-five percent of the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches.

ForReceived eachan schooleducational toscholarship whichor educationaltuition scholarshipsgrant under paragraph 1, 2, 3, 4, 5, or tuition6 grantsOR were7 awarded:of this subsection or chapter 16, article 1 of this title if the children continue to attend a qualified school in a subsequent year.

(a) The name and address of the school.

(b) The number of educational scholarships and tuition grants awarded during the previous fiscal year.

(c) The total dollar amount of educational scholarships and tuition grants awarded during the previous fiscal year.

9.

The names, job titles and annual salaries of the three employees who receive the highest annual salaries from the school tuition organization.

TheA departmentchild shallis posteligible onto itsreceive websitean aeducational reportscholarship ofor thetuition informationgrant itunder receives pursuant to subsection A of this section onif orthe beforechild Marchmeets 31the ofcriteria theto calendarreceive yeara followingreduced-price thelunch yearbut indoes whichnot theactually informationclaim isthat received.benefit.

ONIn OR2021, BEFOREa SEPTEMBERschool 30tuition OForganization EACHshall YEAR,not EACHissue SCHOOLan TUITIONeducational ORGANIZATIONscholarship SHALLor REPORTa ELECTRONICALLYtuition TOgrant THEfor DEPARTMENTthe OFpurposes EDUCATION,of INsection A20-224.06 FORMor PRESCRIBED43-1183 BYin THEan DEPARTMENTamount OFthat EDUCATION,exceeds THE$5,600 NAMESfor OFstudents THEwho CHILDRENare WHOin WEREa AWARDEDkindergarten EDUCATIONALprogram, SCHOLARSHIPSa ORpreschool TUITIONprogram GRANTSthat DURINGoffers THEservices PREVIOUSto FISCALstudents YEARwith ANDdisabilities THEor TOTALgrades DOLLARone AMOUNTthrough OFeight THEor EDUCATIONAL$7,500 SCHOLARSHIPfor OR- TUITION1 GRANT- THEH.B. CHILD RECEIVED, SEPARATELY COMPILED AND IDENTIFIED FOR THE PURPOSES OF SECTIONS 20-224.06, 20-224.07, 43-1183 AND 43-1184." Renumber to conform Page 4, after line 24, insert:

"Sec.2504 students who are in grades nine through twelve.

5.In each year after 2021, the limit amount for a scholarship or a grant under this subsection shall be increased by $200.

SectionD. 43-1604, Arizona Revised Statutes, is amended to read:

43-1604.A school tuition organization shall require that student beneficiaries use the educational scholarships or tuition grants on a full-time basis.

AnnualIf report;a child leaves the school before completing an entire school year, the school shall refund a prorated amount of the educational scholarship or tuition grant to the school tuition organization that issued the scholarship or grant.

postingThe A.school tuition organization shall allocate any refunds it receives under this subsection for educational scholarships or tuition grants.

OnE. or before September 30 of each year, each school tuition organization shall report electronically to the department, in a form -3- Senate Amendments to H.B.

2504Students prescribedwho byreceive thean department,educational thescholarship followingor information,tuition separatelygrant compiledunder andthis identifiedsection forshall thebe purposesallowed ofto sectionsattend 43-1089any andqualified 43-1089.03:school of their parents' choice.

F.

The department of revenue, with the cooperation of the department of insurance and financial institutions, shall adopt rules and publish and prescribe forms and procedures necessary to administer this section.

Sec.

2.

Section 43-1603, Arizona Revised Statutes, is amended to read:

43-1603.

Operational requirements for school tuition organizations;

notice;

qualified schools A.

A certified school tuition organization must be established to receive contributions from taxpayers for the purposes of income tax credits under sections 43-1089 and 43-1089.03 and to pay educational scholarships or tuition grants to allow students to attend any qualified school of their parents' choice.

B.

To be eligible for certification and retain certification, the school tuition organization:

TheMust name,allocate addressat andleast contactninety personpercent of its annual revenue from contributions made for the schoolpurposes of sections 43-1089 and 43-1089.03 for educational scholarships or tuition organization.grants.

TheShall totalnot numberlimit the availability of contributionseducational receivedscholarships duringor thetuition previousgrants fiscalto year.only students of one school.

TheMay totalallow dollardonors amountto ofrecommend contributionsstudent receivedbeneficiaries, duringbut shall not award, designate or reserve scholarships solely on the previousbasis fiscalof year.donor recommendations.

TheShall totalnot numberallow donors to designate student beneficiaries as a condition of childrenany awardedcontribution educationalto scholarshipsthe organization, or tuitionfacilitate, grantsencourage duringor knowingly allow the previousexchange fiscalof year.beneficiary student designations in violation of section 43-1089, subsection F, section 43-1089.03, subsection F and section 43-1089.04, subsection E.

TheShall include on the organization's website, if one exists, the percentage and total dollar amount of:of educational scholarships and tuition grants awarded during the previous fiscal year to:

(a)- Educational2 scholarships- andH.B. tuition grants distributed during the previous fiscal year.

(b)2504 Money(a) beingStudents heldwhose forfamily identifiedincome students'meets scholarshipsthe economic eligibility requirements established under the national school lunch and tuitionchild grantsnutrition inacts future(42 years.United States Code sections 1751 through 1793) for free or reduced-price lunches.

(b) Students whose family income exceeds the threshold prescribed by subdivision (a) of this paragraph but does not exceed one hundred eighty-five percent of the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches.

TheMust costnot ofaward auditseducational pursuantscholarships or tuition grants to sectionstudents 43-1605who paidare duringsimultaneously theenrolled fiscalin year.a district school or charter school and a qualified school.

C.

A school tuition organization shall include the following notice in any printed materials soliciting donations, in applications for scholarships and on its website, if one exists:

Notice A school tuition organization cannot award, restrict or reserve scholarships solely on the basis of a donor's recommendation.

A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer's own dependent.

D.

In evaluating applications and awarding, designating or reserving scholarships, a school tuition organization:

1.

Shall not award, designate or reserve a scholarship solely on the recommendation of any person contributing money to the organization, but may consider the recommendation among other factors.

2.

Shall consider the financial need of applicants.

E.

A taxpayer's contribution to a school tuition organization that exceeds the amount of the credit allowed by section 43-1089 but does not exceed the amount of the credit allowed by section 43-1089.03 is considered a contribution pursuant to section 43-1089.03.

A school tuition organization must use at least ninety percent of contributions made pursuant to section 43-1089.03 for educational scholarships or tuition grants for students to whom any of the following applies:

1.

Attended a governmental primary or secondary school as a full-time student as defined in section 15-901 or attended a preschool program that offers services to students with disabilities at a governmental school for at least ninety days of the prior fiscal year and transferred from a governmental school to a qualified school.

2.

Enroll in a qualified school in a kindergarten program or a preschool program that offers services to students with disabilities.

3.

Are the dependent of a member of the armed forces of the United States who is stationed in this state pursuant to military orders.

4.

Are homeschooled before enrolling in a qualified school.

- 3 - H.B.

2504 5.

Moved to this state from out of state before enrolling in a qualified school.

6.

Participated in an Arizona empowerment scholarship account and did not renew the account or accept the scholarship in order to accept a scholarship or tuition grant under this section.

TheARE totalPLACED dollarIN amountFOSTER ofCARE educationalPURSUANT scholarshipsTO andTITLE tuition8, grantsCHAPTER awarded4 duringAT theANY previousTIME fiscalBEFORE yearTHE to:STUDENT GRADUATES FROM HIGH SCHOOL OR OBTAINS A GENERAL EQUIVALENCY DIPLOMA.

(a)7. Students whose family income meets the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches.

(b) Students whose family income exceeds the threshold prescribed by subdivision (a) of this paragraph but does not exceed one hundred eighty-five percent of the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for free or reduced-price lunches.

ForReceived eachan schooleducational toscholarship whichor educationaltuition scholarshipsgrant under paragraph 1, 2, 3, 4, 5, or tuition6 grantsOR were7 awarded:of this subsection or under chapter 15 of this title if the student continues to attend a qualified school in a subsequent year.

(a)F. The name and address of the school.

-4-In Senateawarding Amendmentseducational scholarships or tuition grants from contributions made pursuant to H.B.section 43-1089.03, a school tuition organization shall give priority to students and siblings of students on a waiting list for scholarships if the school tuition organization maintains a waiting list.

2504G. (b) The number of educational scholarships and tuition grants awarded during the previous fiscal year.

(c)If Thean totalindividual dollareducational scholarship or tuition grant exceeds the school's tuition, the amount ofin educationalexcess scholarshipsshall andbe returned to the school tuition grantsorganization awardedthat duringmade the previousaward fiscalor year.grant.

9.The school tuition organization may allocate the returned monies as a multiyear award for that student and report the award pursuant to section 43-1604, subsection A, paragraph 5, subdivision (b) or may allocate the returned monies for educational scholarships or tuition grants for other students.

The- names,4 job- titles and annual salaries of the three employees who receive the highest annual salaries from the school tuition organization.

10.

THE NAME AND DOLLAR AMOUNT FOR EACH CONTRIBUTION RECEIVED IN THE PREVIOUS FISCAL YEAR.

B.

The department shall post on its website a report of the information it receives pursuant to subsection A of this section on or before March 31 of the calendar year following the year in which the information is received.

C.

ON OR BEFORE SEPTEMBER 30 OF EACH YEAR, EACH SCHOOL TUITION ORGANIZATION SHALL REPORT ELECTRONICALLY TO THE DEPARTMENT OF EDUCATION, IN A FORM PRESCRIBED BY THE DEPARTMENT OF EDUCATION, THE NAMES OF THE CHILDREN WHO WERE AWARDED EDUCATIONAL SCHOLARSHIPS OR TUITION GRANTS DURING THE PREVIOUS FISCAL YEAR AND THE TOTAL DOLLAR AMOUNT OF THE EDUCATIONAL SCHOLARSHIP OR TUITION GRANT THE CHILD RECEIVED, SEPARATELY COMPILED AND IDENTIFIED FOR THE PURPOSES OF 43-1089 AND 43-1089.03." Amend title to conform DENISE “MITZI” EPSTEIN 25041224.docx 03/17/2023 12:24 PM S:

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