Department of Revenue required to designate scholarship granting organizations.

A bill for an act

relating to education; requiring the Department of Revenue to designate scholarship

granting organizations; proposing coding for new law in Minnesota Statutes,

chapter 270C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

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[270C.411] LIST OF APPROVED K-12 SCHOLARSHIP GRANTING

PROGRAMS.

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(a) By January 1 of each calendar year, the commissioner must submit to the Secretary

of the Treasury of the United States and publish on the department's website a list of

scholarship granting organizations located in this state that meet the requirements of section

25F of the Internal Revenue Code. The commissioner must comply with the requirements

of section 25F of the Internal Revenue Code, its associated regulations, or other applicable

guidance issued by the Secretary of the Treasury of the United States in the submission,

and must include all Minnesota scholarship granting organizations that meet the requirements

of section 25F of the Internal Revenue Code in the submission. The submission under this

paragraph serves as an election by the state to participate in the program established by

section 25F of the Internal Revenue Code. Nothing in this paragraph precludes the

commissioner from submitting scholarship granting organizations to the Secretary of the

Treasury during a calendar year following a determination that a scholarship granting

organization meets the requirements of section 25F of the Internal Revenue Code.

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(b) The commissioner may establish rules governing the process and documentation

necessary for an entity to qualify to be included as a scholarship granting organization on

the list produced and submitted by the commissioner pursuant to paragraph (a). The rules

must comply with any rules, regulations, and guidance promulgated by the Secretary of the

Treasury of the United States, but the commissioner's role is ministerial in nature to ensure

compliance with the requirements of this section.

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(c) Scholarship granting organizations registered and permitted to operate and receive

donations in the state may participate by submitting a notice of intent to receive qualified

donations pursuant to section 25F of the Internal Revenue Code. The notice of intent must

be in a form and manner prescribed by the commissioner and submitted to the commissioner

no later than December 1 of the year preceding the calendar year of the submission required

under paragraph (a).

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(d) For purposes of this section, "scholarship granting organization" has the meaning

given in section 25F(c)(5) of the Internal Revenue Code as amended through July 4, 2025.

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