State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB2517: STOs; qualified schools; preschool programs

PRIME SPONSOR: Representative Udall, LD 25

BILL STATUS: Education

 

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRequires student tuition organizations (STO) to provide educational scholarships or tuition grants to children who attend a preschool program at a government school or a quality preschool program.

History

An STO is a nonprofit organization that is exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and has been certified by the Arizona Department of Revenue provided that it meets requirements prescribed in statute (A.R.S. § 43-1502(A)). These statutory requirements include:

·         Allocating at least 90 percent of its annual revenue from contributions for educational scholarships or tuition grants;

·         Not limiting the availability of scholarships or tuition grants to only students of one school; and,

·         Not awarding educational scholarships or tuition grants to students who are simultaneously enrolled in a district school or charter school and a qualified school (A.R.S. § 43-1503(B)).

Additionally, an STO that receives contributions from a corporation must use at least 90 percent of those contributions to provide educational scholarships or tuition grants only to children whose family income does not exceed 185 percent of the income limit to qualify a child for reduced price lunches and who:

·         Attended a public primary or secondary school as a full-time student or attended a preschool program that offers services to students with disabilities and then transferred from that institution.

·         Enrolled in a qualified school in a kindergarten program or a preschool program that offers services to students with disabilities.

·         Is the dependent of a member of the armed forces of the United States who is stationed in this state pursuant to military orders.

·         Received an educational scholarship or tuition grant if the child continues to attend a qualified school in a subsequent year (A.R.S. § 43-1504(A)).

Provisions

1.       Allows an STO that receives contributions from a corporation or taxpayers to use at least 90 percent of those contributions to provide educational scholarships or tuition grants to a child who attends a preschool program at a government school. (Sec. 2 and 4)

2.       Stipulates that children who received an educational scholarship or tuition grant to attend a quality preschool program are not eligible to receive an educational scholarship or tuition grant for a kindergarten program in a subsequent year. (Sec. 2, 4)

3.       Redefines qualified school to include preschools that offer quality preschool programs for the purposes of STOs. (Sec 1.)

4.       Defines quality preschool program. (Sec. 1 and 3)

5.       Makes technical changes. (Sec. 1, 2, 3, and 4)

6.        

7.        

8.       ---------- DOCUMENT FOOTER ---------

9.       Fifty-fourth Legislature                       HB 2517

10.   First Regular Session                            Version 1: Education

11.    

12.   ---------- DOCUMENT FOOTER ---------