15-30-3103. (Temporary) Requirements for student scholarship organizations. (1) A student scholarship organization:

Terms Used In Montana Code 15-30-3103

  • Donation: means a gift of cash. See Montana Code 15-30-3102
  • Eligible student: means a student who is a Montana resident and who is 5 years of age or older on or before September 10 of the year of attendance and has not yet reached 19 years of age. See Montana Code 15-30-3102
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
  • Qualified education provider: means an education provider that:

    (a)is not a public school;

    (b)(i) is accredited, has applied for accreditation, or is provisionally accredited by a state, regional, or national accreditation organization; or

    (ii)is a nonaccredited provider or tutor and has informed the child's parents or legal guardian in writing at the time of enrollment that the provider is not accredited and is not seeking accreditation;

    (c)is not a home school as referred to in 20-5-102(2)(e);

    (d)satisfies the health and safety requirements prescribed by law for private schools in this state; and

    (e)qualifies for an exemption from compulsory enrollment under 20-5-102(2)(e) and 20-5-109. See Montana Code 15-30-3102

  • Student scholarship organization: means a charitable organization in this state that:

    (a)is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code, 26 U. See Montana Code 15-30-3102

(a)shall obligate at least 90% of its annual revenue from donations eligible for the tax credit under 15-30-3111 for scholarships. For the purpose of this calculation:

(i)the cost of the annual fiscal review provided for in 15-30-3105(1)(b) may be paid out of the total donations before calculation of the 90% minimum obligation amount; and

(ii)all donations subject to the 90% minimum obligation amount that are received in 1 calendar year must be paid out in scholarships within the 3 calendar years following the donation.

(b)may not restrict or reserve scholarships for use at a particular education provider or any particular type of education provider and shall allow an eligible student to enroll with any qualified education provider of the parents’ or legal guardian‘s choice;

(c)shall provide scholarships to eligible students to attend instruction offered by a qualified education provider;

(d)may not provide a scholarship to an eligible student for an academic year that exceeds the per-pupil average of total public school expenditures calculated in 20-9-570;

(e)shall maintain separate accounts for scholarship funds and operating funds;

(f)may transfer funds to another student scholarship organization;

(g)shall maintain an application process under which scholarship applications are accepted, reviewed, approved, and denied; and

(h)shall comply with payment and reporting requirements in accordance with 15-30-3104 and 15-30-3105.

(2)An organization that fails to satisfy the conditions of this section is subject to termination as provided in 15-30-3113. (Terminates December 31, 2029–sec. 20, Ch. 480, L. 2021, sec. 7, Ch. 558, L. 2023.)