Plain English Breakdown
The plain English breakdown is still being put together. The official documents below are already here.
HF3491 • 2026
Scholarship-granting organizations authorized.
Scholarship-granting organizations authorized.
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-02-19
House
Introduction and first reading, referred to Taxes
Official Summary Text
Scholarship-granting organizations authorized.
Current Bill Text
Read the full stored bill text
A bill for an act relating to education finance; authorizing scholarship-granting organizations; amending Minnesota Statutes 2024, section 290.01, subdivision 31; proposing coding for new law in Minnesota Statutes, chapter 127A. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [127A.135] SCHOLARSHIP-GRANTING ORGANIZATIONS. new text end new text begin Subdivision 1. new text end new text begin Minnesota is a covered state. new text end new text begin Minnesota elects to participate in the tax credit under Public Law 119-21, section 70411. new text end new text begin Subd. 2. new text end new text begin Scholarship-granting organization defined. new text end new text begin (a) For purposes of this section, "scholarship-granting organization" means a nonprofit corporation operated exclusively for charitable purposes exempt from federal income taxation under section 501(c)(3) of the United States Internal Revenue Code that: new text end new text begin (1) is in compliance with the United States Department of Treasury rules and guidance for scholarship-granting organizations; new text end new text begin (2) maintains separate accounts for qualified contributions; new text end new text begin (3) awards scholarships to at least ten students, not all of whom must attend the same school; new text end new text begin (4) spends at least 90 percent of the income the organization receives on student scholarships; new text end new text begin (5) prioritizes returning students and siblings of current recipients; new text end new text begin (6) does not earmark funding for specific students; new text end new text begin (7) verifies household income and family size; and new text end new text begin (8) avoids self-dealing and does not award scholarships to disqualified persons. new text end new text begin (b) By July 1 of each year, a scholarship-granting organization must annually notify the Department of Education of the organization's compliance with the United States Department of Treasury rules and guidance. new text end new text begin Subd. 3. new text end new text begin List of eligible scholarship-granting organizations. new text end new text begin The Department of Education must post to the department's website a list of qualifying scholarship-granting organizations that have reported their eligibility to the department under subdivision 2. new text end new text begin Subd. 4. new text end new text begin Effect on nonpublic schooling. new text end new text begin Nothing in this section authorizes the Department of Education or any school district to exercise any additional control or supervision over, or to impose any additional requirements or restrictions on, any nonpublic school, nonpublic school student, or parent of any nonpublic school student. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end Sec. 2. Minnesota Statutes 2024, section 290.01, subdivision 31, is amended to read: Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through May 1, 2023 new text begin , and also includes section 70411 of Public Law 119-21 new text end . Internal Revenue Code also includes any uncodified provision in federal law that relates to provisions of the Internal Revenue Code that are incorporated into Minnesota law. new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, except the changes incorporated by federal changes are effective retroactively at the same time the changes were effective for federal purposes. new text end