IC 20-51-3
Chapter 3. Scholarship Granting Organizations; Certification;
Administration of Contributions
IC 20-51-3-1 Certification requirements
Sec. 1. (a) A program qualifies for certification as a school
scholarship program if:
(1) the program:
(A) is administered by a scholarship granting organization;
and
(B) has the primary purpose of providing school scholarships
to eligible students; and
(2) the scholarship granting organization administering the
program:
(A) applies to the department on the form and in the manner
prescribed by the department; and
(B) enters into an agreement with the department to comply
with this article.
(b) A program may not be certified as a school scholarship
program if the program:
(1) limits a recipient of a school scholarship to attending
specific participating schools; or
(2) limits the ability of a recipient of a school scholarship to
change attendance from one (1) participating school to another
participating school. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-2 Department duties
Sec. 2. The department shall certify all programs that meet the
qualifications under section 1 of this chapter as school scholarship
programs. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-3 Certification agreements
Sec. 3. An agreement entered into under section 1 of this chapter
between the department and a scholarship granting organization must
require the scholarship granting organization to do the following:
(1) Provide a receipt to taxpayers for contributions made to the
scholarship granting organization that will be used in a school
scholarship program. The department of state revenue shall
prescribe a standardized form for the receipt issued under this
subdivision. The receipt must indicate the value of the
contribution and part of the contribution being designated for
use in a school scholarship program.
(2) Distribute at least ninety percent (90%) of the total amount
of contributions as school scholarships to eligible students.
(3) Distribute one hundred percent (100%) of any income
earned on contributions as school scholarships to eligible
students.
(4) Conduct criminal background checks on all the scholarship
granting organization's employees and board members and
exclude from employment or governance any individual who
might reasonably pose a risk to the appropriate use of
contributed funds.
(5) Make the reports required by this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-4 Right to receive other contributions
Sec. 4. An agreement entered into under section 1 of this chapter
may not prohibit a scholarship granting organization from receiving
contributions other than contributions described in section 3(1) of
this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-5 Restrictions on certified scholarships
Sec. 5. An agreement entered into under section 1 of this chapter
must prohibit a scholarship granting organization from distributing
school scholarships for use by an eligible student to:
(1) enroll in a school that has:
(A) paid staff or board members; or
(B) relatives of paid staff or board members;
in common with the scholarship granting support organization;
(2) enroll in a school that the scholarship granting organization
knows does not qualify as a participating school; or
(3) pay for the cost of education for a public school where the
eligible student is entitled to enroll without the payment of
tuition. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-6 Annual reports
Sec. 6. (a) A scholarship granting organization certified under this
chapter must publicly report to the department by August 1 of each
year the following information regarding the organization's
scholarships awarded in the previous school year:
(1) The name and address of the scholarship granting
organization.
(2) The total number and total dollar amount of contributions
received during the previous school year.
(3) The:
(A) total number and total dollar amount of scholarships
awarded during the previous school year; and
(B) total number and total dollar amount of school
scholarships awarded during the previous school year.
The report must be certified under penalties of perjury by the chief
executive officer of the scholarship granting organization.
(b) A scholarship granting organization certified under this
chapter shall contract with an independent certified public
accountant for an annual financial audit of the scholarship granting
organization. The scholarship granting organization must provide a
copy of the annual financial audit to the department and must make
the annual financial audit available to a member of the public upon
request. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-7 Report forms
Sec. 7. The department shall prescribe a standardized form for
scholarship granting organizations to report information required
under this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-8 Suspension and termination of certification
Sec. 8. The department may, in a proceeding under IC 4-21.5,
suspend or terminate the certification of an organization as a
scholarship granting organization if the department establishes that
the scholarship granting organization has intentionally and
substantially failed to comply with the requirements of this article or
an agreement entered into under this article. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-9 Notice of suspension or termination
Sec. 9. If the department suspends or terminates the certification
of an organization as a scholarship granting organization, the
department shall notify affected eligible students and their parents of
the decision as quickly as possible. An eligible student affected by
a suspension or termination of a scholarship granting organization's
certification remains an eligible student under this article until the
end of the school year after the school year in which the scholarship
granting organization's certification is suspended or terminated,
regardless of whether the scholarship student currently meets the
definition of an eligible student. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-10 Financial reviews; audits
Sec. 10. The department may conduct either a financial review or
an audit of a scholarship granting organization certified under this
chapter if the department of state revenue has evidence of fraud. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-11 Rules
Sec. 11. The department shall adopt rules under IC 4-22-2 to
implement this article. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3
Chapter 3. Scholarship Granting Organizations; Certification;
Administration of Contributions
IC 20-51-3-1 Certification requirements
Sec. 1. (a) A program qualifies for certification as a school
scholarship program if:
(1) the program:
(A) is administered by a scholarship granting organization;
and
(B) has the primary purpose of providing school scholarships
to eligible students; and
(2) the scholarship granting organization administering the
program:
(A) applies to the department on the form and in the manner
prescribed by the department; and
(B) enters into an agreement with the department to comply
with this article.
(b) A program may not be certified as a school scholarship
program if the program:
(1) limits a recipient of a school scholarship to attending
specific participating schools; or
(2) limits the ability of a recipient of a school scholarship to
change attendance from one (1) participating school to another
participating school. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-2 Department duties
Sec. 2. The department shall certify all programs that meet the
qualifications under section 1 of this chapter as school scholarship
programs. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-3 Certification agreements
Sec. 3. An agreement entered into under section 1 of this chapter
between the department and a scholarship granting organization must
require the scholarship granting organization to do the following:
(1) Provide a receipt to taxpayers for contributions made to the
scholarship granting organization that will be used in a school
scholarship program. The department of state revenue shall
prescribe a standardized form for the receipt issued under this
subdivision. The receipt must indicate the value of the
contribution and part of the contribution being designated for
use in a school scholarship program.
(2) Distribute at least ninety percent (90%) of the total amount
of contributions as school scholarships to eligible students.
(3) Distribute one hundred percent (100%) of any income
earned on contributions as school scholarships to eligible
students.
(4) Conduct criminal background checks on all the scholarship
granting organization's employees and board members and
exclude from employment or governance any individual who
might reasonably pose a risk to the appropriate use of
contributed funds.
(5) Make the reports required by this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-4 Right to receive other contributions
Sec. 4. An agreement entered into under section 1 of this chapter
may not prohibit a scholarship granting organization from receiving
contributions other than contributions described in section 3(1) of
this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-5 Restrictions on certified scholarships
Sec. 5. An agreement entered into under section 1 of this chapter
must prohibit a scholarship granting organization from distributing
school scholarships for use by an eligible student to:
(1) enroll in a school that has:
(A) paid staff or board members; or
(B) relatives of paid staff or board members;
in common with the scholarship granting support organization;
(2) enroll in a school that the scholarship granting organization
knows does not qualify as a participating school; or
(3) pay for the cost of education for a public school where the
eligible student is entitled to enroll without the payment of
tuition. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-6 Annual reports
Sec. 6. (a) A scholarship granting organization certified under this
chapter must publicly report to the department by August 1 of each
year the following information regarding the organization's
scholarships awarded in the previous school year:
(1) The name and address of the scholarship granting
organization.
(2) The total number and total dollar amount of contributions
received during the previous school year.
(3) The:
(A) total number and total dollar amount of scholarships
awarded during the previous school year; and
(B) total number and total dollar amount of school
scholarships awarded during the previous school year.
The report must be certified under penalties of perjury by the chief
executive officer of the scholarship granting organization.
(b) A scholarship granting organization certified under this
chapter shall contract with an independent certified public
accountant for an annual financial audit of the scholarship granting
organization. The scholarship granting organization must provide a
copy of the annual financial audit to the department and must make
the annual financial audit available to a member of the public upon
request. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-7 Report forms
Sec. 7. The department shall prescribe a standardized form for
scholarship granting organizations to report information required
under this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-8 Suspension and termination of certification
Sec. 8. The department may, in a proceeding under IC 4-21.5,
suspend or terminate the certification of an organization as a
scholarship granting organization if the department establishes that
the scholarship granting organization has intentionally and
substantially failed to comply with the requirements of this article or
an agreement entered into under this article. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-9 Notice of suspension or termination
Sec. 9. If the department suspends or terminates the certification
of an organization as a scholarship granting organization, the
department shall notify affected eligible students and their parents of
the decision as quickly as possible. An eligible student affected by
a suspension or termination of a scholarship granting organization's
certification remains an eligible student under this article until the
end of the school year after the school year in which the scholarship
granting organization's certification is suspended or terminated,
regardless of whether the scholarship student currently meets the
definition of an eligible student. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-10 Financial reviews; audits
Sec. 10. The department may conduct either a financial review or
an audit of a scholarship granting organization certified under this
chapter if the department of state revenue has evidence of fraud. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-11 Rules
Sec. 11. The department shall adopt rules under IC 4-22-2 to
implement this article. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3
Chapter 3. Scholarship Granting Organizations; Certification;
Administration of Contributions
IC 20-51-3-1 Certification requirements
Sec. 1. (a) A program qualifies for certification as a school
scholarship program if:
(1) the program:
(A) is administered by a scholarship granting organization;
and
(B) has the primary purpose of providing school scholarships
to eligible students; and
(2) the scholarship granting organization administering the
program:
(A) applies to the department on the form and in the manner
prescribed by the department; and
(B) enters into an agreement with the department to comply
with this article.
(b) A program may not be certified as a school scholarship
program if the program:
(1) limits a recipient of a school scholarship to attending
specific participating schools; or
(2) limits the ability of a recipient of a school scholarship to
change attendance from one (1) participating school to another
participating school. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-2 Department duties
Sec. 2. The department shall certify all programs that meet the
qualifications under section 1 of this chapter as school scholarship
programs. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-3 Certification agreements
Sec. 3. An agreement entered into under section 1 of this chapter
between the department and a scholarship granting organization must
require the scholarship granting organization to do the following:
(1) Provide a receipt to taxpayers for contributions made to the
scholarship granting organization that will be used in a school
scholarship program. The department of state revenue shall
prescribe a standardized form for the receipt issued under this
subdivision. The receipt must indicate the value of the
contribution and part of the contribution being designated for
use in a school scholarship program.
(2) Distribute at least ninety percent (90%) of the total amount
of contributions as school scholarships to eligible students.
(3) Distribute one hundred percent (100%) of any income
earned on contributions as school scholarships to eligible
students.
(4) Conduct criminal background checks on all the scholarship
granting organization's employees and board members and
exclude from employment or governance any individual who
might reasonably pose a risk to the appropriate use of
contributed funds.
(5) Make the reports required by this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-4 Right to receive other contributions
Sec. 4. An agreement entered into under section 1 of this chapter
may not prohibit a scholarship granting organization from receiving
contributions other than contributions described in section 3(1) of
this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-5 Restrictions on certified scholarships
Sec. 5. An agreement entered into under section 1 of this chapter
must prohibit a scholarship granting organization from distributing
school scholarships for use by an eligible student to:
(1) enroll in a school that has:
(A) paid staff or board members; or
(B) relatives of paid staff or board members;
in common with the scholarship granting support organization;
(2) enroll in a school that the scholarship granting organization
knows does not qualify as a participating school; or
(3) pay for the cost of education for a public school where the
eligible student is entitled to enroll without the payment of
tuition. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-6 Annual reports
Sec. 6. (a) A scholarship granting organization certified under this
chapter must publicly report to the department by August 1 of each
year the following information regarding the organization's
scholarships awarded in the previous school year:
(1) The name and address of the scholarship granting
organization.
(2) The total number and total dollar amount of contributions
received during the previous school year.
(3) The:
(A) total number and total dollar amount of scholarships
awarded during the previous school year; and
(B) total number and total dollar amount of school
scholarships awarded during the previous school year.
The report must be certified under penalties of perjury by the chief
executive officer of the scholarship granting organization.
(b) A scholarship granting organization certified under this
chapter shall contract with an independent certified public
accountant for an annual financial audit of the scholarship granting
organization. The scholarship granting organization must provide a
copy of the annual financial audit to the department and must make
the annual financial audit available to a member of the public upon
request. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-7 Report forms
Sec. 7. The department shall prescribe a standardized form for
scholarship granting organizations to report information required
under this chapter. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-8 Suspension and termination of certification
Sec. 8. The department may, in a proceeding under IC 4-21.5,
suspend or terminate the certification of an organization as a
scholarship granting organization if the department establishes that
the scholarship granting organization has intentionally and
substantially failed to comply with the requirements of this article or
an agreement entered into under this article. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-9 Notice of suspension or termination
Sec. 9. If the department suspends or terminates the certification
of an organization as a scholarship granting organization, the
department shall notify affected eligible students and their parents of
the decision as quickly as possible. An eligible student affected by
a suspension or termination of a scholarship granting organization's
certification remains an eligible student under this article until the
end of the school year after the school year in which the scholarship
granting organization's certification is suspended or terminated,
regardless of whether the scholarship student currently meets the
definition of an eligible student. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-10 Financial reviews; audits
Sec. 10. The department may conduct either a financial review or
an audit of a scholarship granting organization certified under this
chapter if the department of state revenue has evidence of fraud. As added by P.L.182-2009(ss), SEC.364.
IC 20-51-3-11 Rules
Sec. 11. The department shall adopt rules under IC 4-22-2 to
implement this article. As added by P.L.182-2009(ss), SEC.364.
