Senate Engrossed

 

 

 

State of Arizona

Senate

Fifty-fourth Legislature

Second Regular Session

2020

 

 

 

CHAPTER 10

 

SENATE BILL 1100

 

 

AN ACT

 

amending sections 43‑1506, 43-1603 and 43‑1604, Arizona Revised Statutes; relating to school tuition organizations.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 43-1506, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1506.  Annual report; posting

A.  On or before September 30 of each year, each school tuition organization shall report electronically to the department, in a form prescribed by the department, the following information, separately compiled and identified for the purposes of sections 20‑224.06, 20‑224.07, 43‑1183 and 43‑1184:

1.  The name, address and contact person of the school tuition organization.

2.  The total number of contributions received during the previous fiscal year.

3.  The total dollar amount of contributions received during the previous fiscal year.

4.  The total number of children awarded educational scholarships or tuition grants during the previous fiscal year.

5.  The total dollar amount of:

(a)  Educational scholarships and tuition grants distributed during the previous fiscal year.

(b)  Money Monies being held for identified students' scholarships and tuition grants in future years.

6.  The cost of audits pursuant to section 43‑1507 paid during the fiscal year.

7.  The percentage and total dollar amount of educational scholarships and tuition grants awarded during the previous fiscal year to:

(a)  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 1785 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 1785 1793) for free or reduced‑price lunches.

8.  For each school to which educational scholarships or tuition grants were awarded:

(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.

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. END_STATUTE

Sec. 2.  Section 43-1603, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1603.  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 percent 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, section 43‑1089.03, subsection F and section 43‑1089.04, subsection E.

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

(a)  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 1785 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 1785 1793) for free or reduced‑price lunches.

6.  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, 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 full‑time students 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.  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 tuition, 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, subsection A, paragraph 5, subdivision (b) or may allocate the returned monies for educational scholarships or tuition grants for other students. END_STATUTE

Sec. 3.  Section 43-1604, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1604.  Annual report; posting

A.  On or before September 30 of each year, each school tuition organization shall report electronically to the department, in a form prescribed by the department, the following information, separately compiled and identified for the purposes of sections 43‑1089 and 43‑1089.03:

1.  The name, address and contact person of the school tuition organization.

2.  The total number of contributions received during the previous fiscal year.

3.  The total dollar amount of contributions received during the previous fiscal year.

4.  The total number of children awarded educational scholarships or tuition grants during the previous fiscal year.

5.  The total dollar amount of:

(a)  Educational scholarships and tuition grants distributed during the previous fiscal year.

(b)  Money being held for identified students' scholarships and tuition grants in future years.

6.  The cost of audits pursuant to section 43‑1605 paid during the fiscal year.

7.  The total dollar amount of educational scholarships and tuition grants awarded during the previous fiscal year to:

(a)  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 1785 1793) for free or reduced price 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 per cent percent of the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785 1793) for free or reduced price reduced‑price lunches.

8.  For each school to which educational scholarships or tuition grants were awarded:

(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.

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. END_STATUTE


 

 

 

 

APPROVED BY THE GOVERNOR MARCH 20, 2020.

 

FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 20, 2020.