43-1504

43-1504. Special provisions; corporate
donations for low-income scholarships; rules

A. A school tuition organization that receives contributions from a corporation for
the purposes of section 20-224.06 or 43-1183 must use at least ninety per cent of those
contributions to provide educational scholarships or tuition grants only to children
whose family income does not exceed one hundred eighty-five per cent of the income limit
required to qualify a child for reduced price lunches under the national school lunch and
child nutrition acts (42 United States Code sections 1751 through 1785) and who either:

1. Attended a governmental primary or secondary school as a full-time student as
defined in section 15-901 for at least the first one hundred days of the prior fiscal
year and transferred from a governmental primary or secondary school to a qualified
school.

2. Enroll in a qualified school in a kindergarten program.

3. Received an educational scholarship or tuition grant under paragraph 1 or 2 if
the children continue to attend a qualified school in a subsequent year.

B. A child is eligible to receive an educational scholarship or tuition grant under
subsection A of this section if the child meets the criteria to receive a reduced price
lunch but does not actually claim that benefit.

C. In 2006, a school tuition organization shall not issue an educational
scholarship or a tuition grant for the purposes of section 20-224.06 or 43-1183 in an
amount that exceeds four thousand two hundred dollars for students in a kindergarten
program or grades one through eight or five thousand five hundred dollars for students in
grades nine through twelve. In each year after 2006, the limitation amount for a
scholarship or a grant under this subsection shall be increased by one hundred dollars.

D. A school tuition organization shall require that student beneficiaries use the
educational scholarships or tuition grants on a full-time basis. If a child leaves the
school before completing an entire school year, the school shall refund a prorated amount
of the educational scholarship or tuition grant to the school tuition organization that
issued the scholarship or grant. The school tuition organization shall allocate any
refunds it receives under this subsection for educational scholarships or tuition grants
in the following year.

E. Students who receive an educational scholarship or tuition grant under this
section shall be allowed to attend any qualified school of their parents' choice.

F. The department of revenue, with the cooperation of the department of insurance,
shall adopt rules and publish and prescribe forms and procedures necessary for the
administration of this section.