Indicates Matter Stricken

Indicates New Matter

committee amendment adopted and amended

March 15, 2023

S. 285

Introduced by Senators Davis, Rice, Grooms, Goldfinch, Climer and Gustafson

S. Printed 03/15/23--S.                                                                          [SEC 3/16/2023 4:30 PM]

Read the first time January 10, 2023

________

A bill

to amend the South Carolina Code of Laws by adding Section 12-6-3791 so as to ALLOW AN INCOME TAX CREDIT FOR CONTRIBUTIONS TO A SCHOLARSHIP-FUNDING ORGANIZATION THAT PROVIDES GRANTS FOR STUDENTS TO ATTEND CERTAIN INDEPENDENT AND HOME SCHOOLS, TO SPECIFY THE MANNER IN WHICH THE CREDIT IS CLAIMED, TO SPECIFY THE PROCESS BY WHICH CERTAIN ORGANIZATIONS AND SCHOOLS BECOME ELIGIBLE, TO SPECIFY CERTAIN INFORMATION WHICH MUST BE MADE PUBLIC, AND TO ALLOW THE STATE TREASURER AND DEPARTMENT OF REVENUE TO ENFORCE THE PROVISIONS OF THE CREDIT; and TO REPEAL SECTION 12-6-3790 RELATING TO THE EDUCATIONAL CREDIT FOR EXCEPTIONAL NEEDS CHILDREN'S FUND.

    Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.  Chapter 6, Title 12 of the S.C. Code is amended by adding:

    Article 26

    Academic Choice in Education (ACE)

    Section 12-6-3850. For purposes of this article:

       (1) "Academic Choice in Education fund" or "ACE" means education funding provided on behalf of eligible students by nonprofit scholarship funding organizations for qualifying expenses as outlined in this article.

       (2) "Department" means the South Carolina Department of Revenue.

       (3) "Disadvantaged child" means a child or his family who meets the qualifications for federal Medicaid benefits, or whose family has an annual adjusted gross income of two hundred percent or less of the federal poverty guidelines as promulgated annually by the United States Department of Health and Human Services.

       (4) "Eligible school" means an independent school, including those religious in nature, other than a public school, at which the compulsory attendance requirements of Section 59-65-10 may be met, that:

           (a) offers a general education to primary or secondary school students;

           (b) does not discriminate on the basis of race, color, or national origin;

           (c) is located in this State;

           (d) has an educational curriculum that includes courses set forth in the state's diploma requirements;

           (e) has school facilities that are subject to applicable federal, state, and local laws; and

           (f) is a member in good standing of the South Carolina Association of Christian Schools, the South Carolina Independent Schools Association, the Palmetto Association of Independent Schools, the American Montessori Society, the International Montessori Council, or the National Association of Private Schools, or alternatively accredited by Cognia or the National Council for Private School Accreditation.

       (5) "Eligible student" means a student who:

           (a) meets the definition of "general child";

           (b) meets the definition of "disadvantaged child";

           (c) meets the definition of "exceptional needs child"; or

           (d) meets the definition of "home school child"; and

           (e) is not a recipient of an Education Scholarship Trust Fund.

       (6)   "Exceptional needs child" means a child:

           (a)(i) who has been evaluated in accordance with this state's evaluation criteria, as set forth in S.C. Code Ann. Regs. 43 243.1, and determined eligible as a child with a disability who needs special education and related services, in accordance with the requirements of Section 300.8 of the Individuals with Disabilities Education Act; or

               (ii) who has been diagnosed as either permanently or within the last three years by a licensed speech-language pathologist, psychiatrist, or medical, mental health, psychoeducational, or other comparable licensed health care provider as having a neurodevelopmental disorder, a substantial sensory or physical impairment such as deaf, blind, or orthopedic disability, or some other disability or acute or chronic condition that significantly impedes the student's ability to learn and succeed in school without specialized instructional and associated supports and services tailored to the child's unique needs; and

           (b) the child's parents or legal guardian believes that the services provided by the school district of legal residence do not sufficiently meet the needs of the child.

       (7) "General child" means a child whose family has an adjusted gross income of four hundred percent or less of the federal poverty guidelines and who is a South Carolina resident who, immediately before receiving a scholarship under this article and enrolling in an eligible school or program, was enrolled in a South Carolina secondary or primary public school or who is eligible to enroll in a qualified first grade, kindergarten, or a three or four year old prekindergarten program or received a scholarship pursuant to this article for the previous school year; provided, however, that if a student is considered to be an eligible student pursuant to this item, he shall continue to qualify as such until he graduates, reaches the age of twenty, or returns to a public school, whichever occurs first.

       (8) "Home school" means a home, residence, or location where a parent or legal guardian teaches one or more children as authorized pursuant to Section 59-65-40, Section 59- 65-45, or Section 59-65-47.

       (9) "Home school child" means any child attending an eligible home school.

       (10) "Nonprofit scholarship funding organization" or "scholarship funding organization" means a charitable organization that: