ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	Senate: FIN DP 6-4-0-0 | 3^rd Read 16-14-0-0 House: WM DP 6-4-0-0

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SB 1273: STOs; contributions; allowable uses

Sponsor:  Senator Mesnard, LD 17

Caucus & COW

Overview

Expands the list of permitted expenditures of a school tuition organization's (STO) educational scholarships.

History

An STO is defined in statute as a nonprofit established to receive income tax credit contributions from corporations and individuals and to disburse educational scholarships or tuition grants to allow qualifying students to attend any qualified school of their parents' choice (A.R.S. § 43-1184, 20-224.07, 43-1603). An STO may accept contributions through four different tax credit programs: 1) original tax credit contributions from individuals; 2) switcher tax credit contributions from individuals; 3) low-income tax credit contributions from corporations; and 4) disabled/displaced tax credit contributions from corporations (A.R.S. § 43-1089, 43-1089.3, 43-1183, 43-1184). An STO must allocate at least 90% of its annual revenue from taxpayer contributions for educational scholarships or tuition grants (A.R.S. § 43-1603).

Provisions

1. Expands the list of permitted expenditures of an STO educational scholarship to include:

a) Registration fees;

b) Extracurricular activities;

c) Standardized testing for college credit or readiness; and

d) career and technical education industry certification assessment. (Sec. 2, 4)

2. Defines career and technical education industry certification assessment, educational scholarship or tuition grant, extracurricular activities, standardized testing for college credit or readiness and widely recognized and accepted educational testing organization. (Sec. 1, 3)

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                        SB 1273

Initials VP/NM Page 0 Caucus & COW

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