Vote Smart's Synopsis:

Vote to pass a bill that establishes scholarships and grants for private school and college students.

Highlights:

• Defines "eligible public school" as a public school in which at least 55% of the previous school year's enrolled students are eligible to receive a free or reduced-price meal under the National School Lunch Act (Sec. 1-5.A).

• Classifies an “eligible student” as someone who meets the following criteria (Sec. 1-6.A):

• Is receiving a scholarship under this law for the first time;

• Is transferring from a public school in this state at which the student has been enrolled for at least 1 semester immediately preceding the first semester for which the student receives a student scholarship under this subchapter to attend a nonpublic school that is eligible to participate in the Arkansas Child Academic Opportunity Scholarship and Grant Act program;

• Was not continuously enrolled in a nonpublic school in this state during the school year immediately preceding the first semester for which the student receives a student scholarship under this law to attend a nonpublic school that is eligible to participate in the Arkansas Child Academic Opportunity Scholarship and Grant Act program; and

• Has a household or family income that is less than or equal to 200% of the federal poverty guidelines.

• Establishes the following for a student who is a recipient of a student scholarship under this act (Sec. 2):

• They may be counted for a consolidation determination made under this law; and

• Will not be counted for a funding determination made under this law.

• Authorizes an eligible student support organization to (Sec. 6-18-2204.b):

• Finance an:

• Eligible private school payment for an eligible student if the eligible student support organization is a private school student support organization; or

• Eligible public school payment for an eligible public school if the eligible student support organization is a public school student support organization; and

• Receive eligible contributions.

• Specifies of the $10,000,000 in state income tax credits allowed under this law, $6,000,000 will be allotted for eligible contributions made for funding eligible public school payments, and $4,000,000 will be allotted for eligible contributions made for funding eligible private school payments (Sec. 4-2.B).

• Requires an organization to specify in an application it submits under this law whether the organization intends to (Sec. 6-18-2205-2.A):

• Operate as a private school student support organization;

• Operate as a public school student support organization; or

• Operate both as a private school student support organization and a public school student support organization.

• Specifies a public school district or an open-enrollment public charter school is not entitled to receive from a private school student support organization, for each student who is a recipient of a student scholarship under the Arkansas Child Academic Opportunity Scholarship and Grant Act, more than the equivalent of the state foundation funding amount that would be received by the public school district or open-enrollment public charter school (Sec. 3-2.B).

• Establishes a state income tax credit is allowed against the taxes imposed by the Income Tax Act for 100% of an eligible contribution made by an eligible taxpayer in a tax year to an eligible student support organization for student scholarships or eligible payments to eligible public schools at the time of the eligible contribution (Sec. 4.b).

Full Bill Text