HB 1736 Summary

• Establishes the "Passport Scholarship Program" allowing students in unaccredited school districts to receive scholarships (up to 60% tax credit for donors) to attend nonpublic schools, with a cumulative annual tax credit cap of $40 million adjusted for inflation.

• Creates requirements for educational assistance organizations administering scholarships, including that at least 90% of contributions fund scholarships, financial accountability through audits, and background checks for employees and board members.

• Modifies unaccredited school district governance by allowing the state board of education to permit existing boards to continue under conditions, appoint special administrative boards, establish alternative governance structures, or attach districts to other districts, with annual reporting requirements.

• Requires qualified schools receiving scholarship students to comply with health and safety laws, hold occupancy permits, not discriminate in admissions, and either achieve accreditation within four years or obtain provisional approval.

• Establishes a clearinghouse administered by the Department of Elementary and Secondary Education to coordinate student transfers from unaccredited metropolitan school districts to accredited districts or nonpublic schools using passport scholarships, with transfer deadlines and "good cause" exceptions.