Bill
Number: H.B. 2617
Yarbrough Floor Amendment
Reference to: House engrossed bill
Amendment drafted by: Bill Ritz
FLOOR AMENDMENT EXPLANATION
The Yarbrough floor amendment excludes limited liability companies from claiming tax credits for contributions to school tuition organizations and prohibits students simultaneously enrolled in a district school or charter school and a qualified school from receiving educational scholarships.
YARBROUGH FLOOR AMENDMENT
SENATE AMENDMENTS TO H.B. 2617
(Reference to House engrossed bill)
Page 9, line 37, strike “SECTIONS” insert “section”
Strike line 38 insert “43-1183, subsection f or section 43-1184, subsection f, or both. all other requirements of section 43-1183 or section 43-1184 and the applicable sections of chapter 15 of this title must be met.”
Line 39, strike the last comma
Strike lines 40 and 41
Line 42, strike “SUBCHAPTER S” insert “and stockholders of an s corporation as defined in section 1361”
Page 10, line 20, after “PARTNERSHIP” strike remainder of line
Strike lines 21, 22 and 23 insert “or an s corporation as defined in section 1361 of the internal revenue code.”
Page 12, line 38, strike “; definitions”
Page 14, line 1, strike “corporate”
Line 2, strike “, MEMBERS OF A LIMITED LIABILITY COMPANY”; strike the second “A”
Strike line 3
Line 4, strike “CHAPTER 1, SUBCHAPTER S” insert “an s corporation as defined in section 1361”
Strike lines 19 through 23
Line 27, strike “; definitions”
Page 15, line 27, strike “corporate”
Line 28, strike “, MEMBERS OF A LIMITED LIABILITY COMPANY”; strike the second “A”
Strike line 29
Line 30, strike “CHAPTER 1, SUBCHAPTER S” insert “an s corporation as defined in section 1361”
Page 16, strike lines 1 through 5, insert:
“Sec. 8. Section 43-1503, Arizona Revised Statutes, is amended to read:
43-1503. Operational requirements for school tuition organizations
A. A certified school tuition organization must be established to receive contributions from taxpayers for the purposes of income tax credits under sections 43‑1183 and 43‑1184 and insurance premium tax credits under sections 20‑224.06 and 20‑224.07 and to pay educational scholarships or tuition grants to allow students to attend any qualified school of their parents' or custodians' choice.
B. To be eligible for certification and retain certification, the school tuition organization:
1. Must allocate at least ninety per cent of its annual revenue from contributions made for the purposes of sections 20‑224.06, 20‑224.07, 43‑1183 and 43‑1184 for educational scholarships or tuition grants.
2. Shall not limit the availability of educational scholarships or tuition grants to only students of one school.
3. Must allow the department of revenue to verify that the educational scholarships and tuition grants that are issued are awarded to students who attend a qualified school.
4. Must not knowingly collude with any other school tuition organization to circumvent the limits of section 43-1504, subsection C.
5. must not award educational scholarships or tuition grants to students who are simultaneously enrolled in a district school or charter school and a qualified school.
Sec. 9. 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:
1. Must allocate at least ninety per cent of its annual revenue from contributions made for the purposes of sections 43‑1089 and 43‑1089.03 for educational scholarships or tuition grants.
2. Shall not limit the availability of educational scholarships or tuition grants to only students of one school.
3. May allow donors to recommend student beneficiaries, but shall not award, designate or reserve scholarships solely on the basis of donor recommendations.
4. Shall not allow donors to designate student beneficiaries as a condition of any contribution to the organization, or facilitate, encourage or knowingly permit the exchange of beneficiary student designations in violation of section 43‑1089, subsection F.
5. must not award educational scholarships or tuition grants to students who are simultaneously enrolled in 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:
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 per cent 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. Enrolls in a qualified school in a kindergarten program or a preschool program that offers services to students with disabilities.
3. Is the dependent of a member of the armed forces of the United States who is stationed in this state pursuant to military orders.
4. Received an educational scholarship or tuition grant under paragraph 1, 2 or 3 of this subsection or under chapter 15 of this title if the student continues to attend a qualified school in a subsequent year.
F. In awarding educational scholarships or tuition grants from contributions made pursuant to 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.
G. If an individual educational scholarship or tuition grant exceeds the school's total cost of educating that student, the amount in excess shall be returned to the school tuition organization that made the award or grant. 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, paragraph 5, subdivision (b) or may allocate the returned monies for educational scholarships or tuition grants for other students.”
Renumber to conform
Amend title to conform