Provides relative to the tax credit for donations to school tuition organizations. (gov sig) (EN SEE FISC NOTE See Note)
SB 27 revises Louisiana’s tax credit program for donations to school tuition organizations, which fund scholarships for students attending qualified nonpublic schools. The bill updates how scholarship payments are made and monitored, requiring quarterly payments to be issued to parents and sent to the qualifying school, with the parent’s approval required for deposit. It also clarifies that parents may electronically endorse checks, but may not appoint a school-affiliated person as attorney to endorse the check on their behalf.
The bill also changes testing and scholarship rules for participating schools and students. Qualified schools must administer either the state accountability test or an approved nationally norm-referenced test in the relevant grades, using retained administrative funds, and must provide annual test results to parents. In addition, the bill allows a student to receive scholarships from multiple school tuition organizations, but caps the total amount at the lesser of actual tuition and mandatory fees or a percentage of the state average Minimum Foundation Program per-pupil funding, depending on grade level. It also requires the Department of Education to verify compliance and directs scholarship organizations to refund the state if overpayments cause the student’s total aid to exceed the applicable limit.
The bill’s impact is to tighten administration of the school tuition organization tax credit program while preserving and expanding some scholarship flexibility. It affects R.S. 47:6301 and the relationship among scholarship organizations, nonpublic schools, parents, and the Department of Education by imposing clearer payment procedures, testing requirements, and aggregate aid limits. It also reinforces that scholarship aid under this program cannot be stacked beyond tuition and fee costs when combined with other publicly funded nonpublic-school assistance.
Overall sentiment appears favorable, as the bill passed both chambers with strong support, including unanimous House final passage and Senate concurrence after a narrower Senate final passage vote. The Senate did reject one amendment, suggesting some disagreement over details, but the final enacted version indicates broad legislative acceptance of the program’s structure and oversight changes.
The main points of contention appear to center on scholarship caps, whether students may combine multiple forms of aid, and the administrative burden of testing and payment verification. Supporters likely viewed the bill as improving accountability and clarifying how funds are distributed, while critics may have been concerned about limits on aid, the role of public funds in private education, or the testing requirements imposed on participating schools.
SB 27 amends Louisiana Revised Statutes 47:6301 governing the tax credit for donations to school tuition organizations. It changes the mechanics of scholarship disbursement, testing obligations for qualified nonpublic schools, and the limits on total scholarship aid a student may receive from school tuition organizations and other publicly funded nonpublic-school assistance. The bill also assigns the Department of Education a verification role and requires refunds to the state when scholarship totals exceed statutory caps.
The bill appears to have had generally positive legislative support, with strong final passage votes in both chambers and unanimous House approval on final passage. The Senate vote was more divided, and an amendment failed, indicating some debate over the bill’s details, but the enacted version reflects broad agreement on the need to update and regulate the scholarship program.
The most notable disagreements likely involved the amendment process, the extent to which students can combine scholarships from multiple school tuition organizations, and the limits on total aid relative to tuition, fees, and MFP per-pupil funding. Another possible area of contention is the testing requirement for qualified schools and the administrative oversight placed on schools, parents, scholarship organizations, and the Department of Education. These issues pit advocates of accountability and fiscal limits against those concerned about access, flexibility, and private-school autonomy.