15-30-3103 . (Temporary) Requirements for student scholarship organizations.
(1)A student scholarship organization:
(a)shall apply for certification, in a manner prescribed by the department, prior to accepting donations eligible for the tax credit under 15-30-3111 . Certification under this subsection (1)(a) is valid for the tax year for which it is issued and for the immediately following tax year. In no case may a certification be valid for more than 2 tax years.
(i)The department shall issue a decision related to the certification of a student scholarship organization no more than 60 days following the date on which the department received the student scholarship organization's application for certification.
(ii)If the department finds that a student scholarship organization has no
Free access — add to your briefcase to read the full text and ask questions with AI
15-30-3103 . (Temporary) Requirements for student scholarship organizations. (1) A student scholarship organization:
(a) shall apply for certification, in a manner prescribed by the department, prior to accepting donations eligible for the tax credit under 15-30-3111 . Certification under this subsection (1)(a) is valid for the tax year for which it is issued and for the immediately following tax year. In no case may a certification be valid for more than 2 tax years.
(i) The department shall issue a decision related to the certification of a student scholarship organization no more than 60 days following the date on which the department received the student scholarship organization's application for certification.
(ii) If the department finds that a student scholarship organization has not complied with the requirements of this part, the department shall deny certification.
(iii) A student scholarship organization that is denied certification must be granted 30 days to rectify the causes for the denial. If the organization fails to rectify the causes for the denial, the department shall issue a final denial of certification. A final denial of certification may not be appealed.
(iv) A student scholarship organization that has received a final denial of certification may reapply for certification with the department for the tax year following the tax year for which the denial was issued.
(v) A student scholarship organization that has not been certified under this section may not accept donations eligible for the tax credit under 15-30-3111 . The organization shall disburse all remaining scholarship funds from previous donations in accordance with the requirements in this part.
(b) shall obligate at least 90% of its annual revenue from donations eligible for the tax credit under 15-30-3111 for scholarships. For the purpose of this calculation:
(i) the cost of the annual fiscal review provided for in 15-30-3105 (1)(b) may be paid out of the total donations before calculation of the 90% minimum obligation amount; and
(ii) all donations subject to the 90% minimum obligation amount that are received in 1 calendar year must be paid out in scholarships within the 3 calendar years following the donation.
(c) may not limit, restrict, or reserve scholarships for use at a single education provider or any particular type of education provider and shall allow an eligible student to enroll with any qualified education provider of the parents' or legal guardian's choice;
(d) shall provide scholarships to eligible students to attend instruction offered by a qualified education provider;
(e) may not provide a scholarship to an eligible student for an academic year that exceeds the per-pupil average of total public school expenditures calculated in 20-9-570 ;
(f) shall maintain separate accounts for scholarship funds and operating funds;
(g) may transfer funds to another student scholarship organization with prior written notice to the department;
(h) shall maintain an application process under which scholarship applications are accepted, reviewed, approved, and denied;
(i) shall comply with payment and reporting requirements in accordance with 15-30-3104 and 15-30-3105 ; and
(j) shall maintain on its public website:
(i) a detailed description of the organization's scholarship application and scholarship award processes;
(ii) a list of the qualified education providers to which the student scholarship organization awarded scholarships in the previous school year; and
(iii) the following language prominently displayed: Scholarships from this student scholarship organization may be used at any qualified education provider of the parent's or legal guardian's choice.
(2) An organization that fails to satisfy the conditions of this section is subject to termination as provided in 15-30-3113 . (Terminates December 31, 2029--sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023.)