This bill aims to enhance education finance in Minnesota by authorizing the establishment of scholarship-granting organizations. It introduces a new section, [127A.135], in the Minnesota Statutes, which defines a scholarship-granting organization as a nonprofit corporation that meets specific criteria, including compliance with federal regulations, maintaining separate accounts for contributions, and awarding scholarships to a minimum of ten students. The bill mandates that these organizations notify the Department of Education annually about their compliance and requires the Department to maintain a publicly accessible list of eligible organizations. Additionally, it clarifies that the legislation does not grant the Department of Education or school districts any additional authority over nonpublic schools or their students.

Furthermore, the bill amends Minnesota Statutes 2024, section 290.01, subdivision 31, to include section 70411 of Public Law 119-21 within the definition of the Internal Revenue Code. This amendment ensures that the state law aligns with recent federal tax provisions. The effective date for the new section and the amendments is set for the day following final enactment, with certain changes being retroactively effective to match federal timelines.

Statutes affected:
Introduction: 290.01