This bill authorizes the establishment of scholarship-granting organizations in Minnesota and outlines their operational requirements. It defines a "scholarship-granting organization" as a nonprofit corporation that meets specific criteria, including compliance with federal regulations, maintaining separate accounts for contributions, awarding scholarships to a minimum of ten students, and prioritizing returning students and siblings of current recipients. Additionally, these organizations must notify the Department of Education annually about their compliance with federal rules. The Department is also tasked with maintaining a list of eligible organizations on its website.

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. It clarifies that the new provisions do not grant the Department of Education or school districts any additional authority over nonpublic schools or their students. The effective date for these changes is set for the day following final enactment, with certain provisions being retroactively effective to align with federal changes.

Statutes affected:
Introduction: 290.01