This text of Arkansas § 6-18-2306 (Scholarship-granting organizations - Duties) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Each scholarship-granting organization shall:
(1)Notify the Division of Elementary and Secondary Education of its intent to provide educational scholarships to qualified students attending private schools;
(2)Demonstrate proof of exemption from federal income tax under 26 U.S.C. § 501(c)(3) of the Internal Revenue Code, as in effect on January 1, 2021; (3)(A) Provide a receipt, approved by the division, to a taxpayer for eligible contributions made to the scholarship-granting organization.
(B)A scholarship-granting organization shall provide a copy of a receipt issued under subdivision (3)(A) of this section to the Tax Credits and Special Refunds Section of the Department of Finance and Administration or its successor.
(C)A receipt issued by a scholarship-granting organization under s
Free access — add to your briefcase to read the full text and ask questions with AI
Each scholarship-granting organization shall: (1) Notify the Division of Elementary and Secondary Education of its intent to provide educational scholarships to qualified students attending private schools; (2) Demonstrate proof of exemption from federal income tax under 26 U.S.C. § 501(c)(3) of the Internal Revenue Code, as in effect on January 1, 2021; (3) (A) Provide a receipt, approved by the division, to a taxpayer for eligible contributions made to the scholarship-granting organization. (B) A scholarship-granting organization shall provide a copy of a receipt issued under subdivision (3)(A) of this section to the Tax Credits and Special Refunds Section of the Department of Finance and Administration or its successor. (C) A receipt issued by a scholarship-granting organization under subdivision (3)(A) of this section shall be issued only for the amount of eligible contributions actually received; (4) (A) Ensure that first-time recipients of educational scholarships were not continuously enrolled in a private school within the state during the previous school year. (B) The requirement under subdivision (4)(A) of this section shall not apply to a student with a disability identified under the Individuals with Disabilities Education Act, 20 U.S.C. § 1400 et seq., as it existed on January 1, 2023; (5) Establish a system for parents or guardians of qualified students who receive educational scholarships under this subchapter to direct educational scholarship funds to nonpublic schools by use of: (A) Checks; (B) Electronic funds transfer, including an automated clearinghouse transfer; or (C) Another system that the scholarship-granting organization finds to be commercially viable, cost-effective, and accessible to parents or guardians of qualified students; (6) (A) Conduct and maintain for audit purposes a background check of all employees of the scholarship-granting organization. (B) A scholarship-granting organization shall exclude any individual from employment who may reasonably pose a risk to the appropriate use of eligible contributions under this subchapter; (7) Distribute eligible contributions within three (3) tax years of receipt by the scholarship-granting organization; (8) Demonstrate financial viability if it expects to receive eligible contributions equal to or greater than fifty thousand dollars ($50,000) during the academic school year by filing with the division before the start of the academic school year either: (A) A surety bond payable to the State of Arkansas in an amount equal to the aggregate amount of eligible contributions the scholarship-granting organization expects to receive during the academic school year; or (B) Financial information that demonstrates the financial viability of the scholarship-granting organization; (9) Ensure that participating private schools: (A) Comply with all health and safety laws and rules; (B) Hold valid occupancy of buildings as required by the relevant municipality in which the private school is located; (C) (i) Are held academically accountable by annually administering or making provision for the administration of a nationally recognized norm-referenced test to qualified students in grades three through ten (3-10) who have received educational scholarships under this subchapter. (ii) However, a qualified student in grades three through ten (3-10) who has received an educational scholarship under this subchapter, has an individualized service plan in accordance with the Individuals with Disabilities Education Act, 20 U.S.C. § 1412(a)(10) , as it existed on January 1, 2021, and is determined by the private school to need an exemption from standardized testing due to the existence of a significant cognitive disability is not required to take the test required under subdivision (9)(C)(i) of this section. (iii) If a student is not required to take the test required under subdivision (9)(C)(i) of this section, a participating private school shall annually make provision for the student to take an alternate assessment approved by the State Board of Education or prepare a portfolio that provides information on a student's progress to the student's parent or guardian; and (D) (i) Annually report the scores and other academic progress to: (a) The parent or guardian of each qualified student who has received an educational scholarship under this subchapter; and (b) (1) An independent research organization selected by the division in accordance with § 6-18-2307(b)(1) . (2) Data reported to an independent research organization shall be reported in a manner that ensures disaggregation by grade level, gender, family income level, and race. (ii) The annual report required under this subdivision (9)(D) shall be published by the division on the division's website each year; (10) (A) Report to the division by June 1 of each year the following information based on the previous academic school year: (i) The name and address of the scholarship-granting organization; (ii) The total number and total dollar amount of eligible contributions the scholarship-granting organization received during the previous calendar year; (iii) The total number and total dollar amount of educational scholarships awarded to qualified students under this subchapter during the previous calendar year; and (iv) The total number of qualified students, according to the qualified students' respective resident public school districts, who received an educational scholarship from the scholarship-granting organization under this subchapter during the previous budget year. (B) The report required under subdivision (10)(A) of this section shall be prepared by a certified public accountant; and (11) Ensure that at least ninety percent (90%) of revenue from eligible contributions and one hundred percent (100%) of revenue from interest or investments is spent within three (3) years of receipt on: (A) Educational scholarships; and (B) Activities pertaining to the oversight of participating private schools.