ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: ED DP 6-4-0-0

HB 2504: STO scholarships; foster care students

Sponsor: Representative Parker B., LD 10

House Engrossed

Overview

Adds students placed in Arizona foster care to those who are eligible to receive a school tuition organization (STO) educational scholarship or tuition grant (scholarship) as specified.

History

An STO is a nonprofit organization that receives income tax contributions to fund scholarships for students to attend qualified private schools in Arizona. STOs must be certified by the Arizona Department of Revenue (A.R.S. Title 43, Chapters 15 and 16).

Currently, there are four tax credits through which an STO may receive contributions from taxpayers: 1) the individual credit for contributions to STOs; 2) the individual credit for contributions to certified STOs (switcher credit); 3) the corporate credit for contributions to STOs for low-income scholarships; and 4) the corporate credit for contributions to STOs for displaced or disabled students (A.R.S. §§ 43-1089, 43-1089.03, 43-1183, 43-1184).

An STO that awards low-income scholarships must use at least 90% of contributions to provide scholarships to children whose family income does not exceed 185% of the income limit required to qualify for reduced-price lunches. Furthermore, to be eligible for a low-income scholarship, a student must meet one of the following criteria: 1) attended a governmental school full-time or a preschool program that offers services to disabled students at a governmental school for at least 90 days of the prior fiscal year or one full semester; 2) enroll in a qualified school in a kindergarten or preschool program that offers services to disabled students; 3) be a dependent of a U.S. Armed Forces member stationed in Arizona; 4) be homeschooled; 5) moved to Arizona from out of state; 6) participated in an Arizona Empowerment Scholarship Account (ESA) and did not renew the ESA; or 7) received other specified STO scholarships (A.R.S. § 43-1504).

An STO that receives switcher credit contributions must use at least 90% of contributions for scholarships to students who: 1) attended a governmental school full-time or a preschool program that offers services to disabled students at a governmental school for at least 90 days of the prior fiscal year; 2) enroll in a qualified school in a kindergarten or a preschool program that offers services to disabled students; 3) are a dependent of a U.S. Armed Forces member stationed in Arizona; 4) are homeschooled; 5) moved to Arizona from out of state; 6) participated in an ESA and did not renew the ESA; or 7) received other specified STO scholarships (A.R.S. § 43-1603).

Provisions

1. Includes students placed in Arizona foster care to those eligible to receive a low-income scholarship from an STO or a scholarship from an STO that receives switcher credit contributions. (Sec. 1, 2)

2. Specifies an STO may award a scholarship to a student in Arizona foster care any time before their high school graduation or their obtainment of a general equivalency diploma. (Sec. 1, 2)

5. ---------- DOCUMENT FOOTER ---------

6. HB 2504

7. Initials CH Page 0 House Engrossed

9. ---------- DOCUMENT FOOTER ---------