HB 2235 Summary

• Requires school tuition organizations (STOs) to award at least 66 percent of educational scholarships and tuition grants to students whose family income does not exceed 185 percent of the income limit for reduced-price school lunches under federal nutrition programs.

• Applies the 66 percent means-testing requirement to both scholarships funded through the standard tax credit (section 43-1089) and the enhanced tax credit (section 43-1089.03).

• Updates STO operational requirements to include consideration of financial need when evaluating scholarship applications and awarding grants.

• Modifies audit and financial review requirements to evaluate STO compliance with the new 66 percent means-testing allocation requirement for scholarships.

• Establishes notice requirements for STOs to inform donors and applicants that scholarships cannot be awarded solely based on donor recommendations and that taxpayers cannot swap donations to benefit their own dependents.