This bill establishes a framework for providing charitable contributions to scholarship granting organizations in South Dakota. It defines key terms such as "eligible student," "microschool," "parent," "scholarship," and "scholarship granting organization." Eligible students must be under the age of nineteen, residents of South Dakota, U.S. citizens or permanent residents, and from households with an income not exceeding three hundred percent of the area median income. The bill allows individuals to make charitable contributions to registered scholarship granting organizations, which must meet specific requirements, including federal tax exemption and adherence to guidelines for distributing scholarships.

The bill outlines the application process for parents of eligible students to apply for scholarships, which can be used for various educational expenses, including tuition, virtual coursework, instructional materials, and transportation. Scholarships awarded cannot exceed a specified percentage of the state's per-student funding. Additionally, the scholarship granting organizations are required to verify expenditures and may recover funds if scholarships are not used appropriately. The Department of Education is tasked with creating rules for the registration of scholarship granting organizations, the application process for scholarships, and ensuring compliance with the bill's provisions.