Bill > HB1306

This bill authorizes individuals to make charitable contributions to a scholarship granting organization, which is an entity registered with the Department of Education. To be registered, these organizations must be federally tax-exempt and agree to distribute scholarships to eligible students, who are defined as residents under nineteen years old, not enrolled full-time in a public school, and from households earning up to 300% of the area median income. The scholarship granting organization can retain no more than ten percent of contributions for administrative costs and must provide annual statements to donors and audited financial reports to the department detailing scholarship awards and usage. Scholarships can be used for tuition and fees at accredited nonpublic schools or microschools (businesses providing educational services outside of traditional public schools), virtual coursework, educational materials, technology, transportation to educational institutions, and standardized test fees, with the scholarship amount capped at 82.5% of the state's per-student funding or actual expenses. The bill also requires the Department of Education to establish rules for the registration and operation of these organizations, the scholarship application and distribution process, and verification of scholarship fund usage.

Education

https://sdlegislature.gov/#/Session/Bill/26370