SB 1427 Summary

• Increases the minimum percentage of annual revenues that school tuition organizations (STOs) must allocate to educational scholarships or tuition grants from 90% to 95% for contributions under sections 20-224.06, 20-224.07, 43-1183, 43-1184, 43-1089, and 43-1089.03.

• Requires STOs receiving $1 million or more in total donations annually to conduct a financial audit by September 30 each year, while those receiving less than $1 million must conduct a financial review, both by independent certified public accountants.

• Prohibits STOs from awarding scholarships solely based on donor recommendations; allows donor recommendations to be considered among other factors, with priority given to financial need.

• Requires STOs to include on their websites the percentage and total dollar amount of scholarships awarded to students meeting federal free or reduced-price lunch eligibility requirements during the previous fiscal year.

• Prohibits STOs from awarding scholarships to students simultaneously enrolled in both district/charter schools and qualified schools, and adds requirements for notice in solicitation materials regarding donor recommendation limitations and tax credit swap restrictions.