This bill aims to enhance education finance in Minnesota by authorizing the establishment of scholarship-granting organizations. It introduces a new section, [127A.135], to the Minnesota Statutes, defining a "scholarship-granting organization" as a nonprofit corporation that meets specific criteria, including compliance with federal regulations, maintaining separate accounts for contributions, and prioritizing certain students for scholarships. The bill mandates that these organizations notify the Department of Education annually about their compliance and requires the department to maintain a list of eligible organizations on its website. Additionally, it clarifies that the legislation does not grant the Department of Education or school districts any additional control 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 changes, with the effective date of the new provisions set for the day following final enactment, while the federal changes will be retroactively effective as they were for federal purposes.

Statutes affected:
Introduction: 290.01