SB 318 - AS INTRODUCED
2019 SESSION
19-0503
10/05
SENATE BILL 318
AN ACT relative to donations to the education tax credit program.
SPONSORS: Sen. Watters, Dist 4; Sen. Kahn, Dist 10; Sen. Fuller Clark, Dist 21; Sen. Hennessey, Dist 5
COMMITTEE: Ways and Means
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ANALYSIS
This bill extends the education tax credit program to public schools and workforce development programs. The bill also establishes an education tax credit management commission.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0503
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to donations to the education tax credit program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Education Tax Credit; Definition; Administrative Organization Application. Amend RSA 77-G:1 by inserting after paragraph II the following new paragraph:
II-a. "Administrative organization application" means a response to a request for proposals developed by the management commission seeking a donation program administrator. The administrative organization application shall contain at a minimum:
(a) The applicant organization's name, address, and federal taxpayer identification number.
(b) A contact person's name, title, and phone number.
(c) A signed statement that the applicant organization has met the eligibility requirements of paragraph XVII, and will comply with the provisions of this chapter.
2 Definition; Educational Expense. Amend RSA 77-G:1, VI to read as follows:
VI. "Educational expenses" means the tuition cost of an eligible student to attend a public or nonpublic school, excluding students who were placed into a nonpublic school by their school district, the cost of college or university, accredited tutor or tutoring facility, or distance education program. Educational expenses shall apply to private and home educational expenses. Educational expenses shall not include fees or expenses related to participation in athletic programs, transportation expenses, or the cost of a parent's time expended in the home schooling of his or her child.
3 New Paragraph; Definition; Management Commission. Amend RSA 77-G:1 by inserting after paragraph VIII-a the following new paragraph:
VIII-b. "Management commission" means the education tax credit management commission established in RSA 77-G:5-a.
4 New Paragraphs; Definitions Added. Amend RSA 77-G:1 by inserting after paragraph XII the following new paragraphs:
XII-a. "Public school donation program administrator" or "program administrator" means a charitable organization incorporated or qualified to do business in this state that:
(a) Is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code;
(b) Complies with applicable state and federal anti-discrimination and privacy laws;
(c) Is registered with the director of charitable trusts; and
(d) Has the following qualifications:
(1) Experience with New Hampshire public education, including public school organizations and current policies and practices.
(2) Demonstrated grant, donation, and financial management capacity.
(3) Demonstrated capacity to support public school organizations in implementing new education initiatives.
(4) Ability to support workforce development projects.
(5) Ability to raise and administer administrative funds and public school donations in support of the public school donation program established by this chapter.
(6) Can demonstrate an understanding of the requirements of successfully administering the public school donation program.
(e) Has been approved by the management commission for the purpose of issuing donations to public school organizations as provided in this chapter.
XII-b. "Public school organization" means a New Hampshire public school or charter school, public school district, or school administrative unit.
XII-c. "Public school program donation" means a donation made under this chapter and received by the program administrator for use by a public school organization to implement or support an approved workforce development program.
5 Definitions Modified. Amend RSA 77-G:1, XIII - XVII to read as follows:
XIII. "Receipt" means proof of payment received by a school from:
(a) A scholarship organization or, in the case of a home educated student, a document that is issued by the parent of a home educated student, to the scholarship organization which makes payment for educational expenses on behalf of an eligible student and that contains, at a minimum and where applicable:
[(a)] (1) The name and address of a parent of a home educated student.
[(b)] (2) The name and address of the eligible student for whom the expense has been paid.
[(c)] (3) The name of the payee and the date and amount of the expense paid.
(b) The program administrator which makes payment for school organization expenses for an approved program, that includes as a minimum and where applicable:
(1) The name of the public school organization.
(2) The name of the funded program.
(3) The name, address, telephone number, and email address of the program contact.
(4) All relevant receipts.
XIV. "Receiving school" means a public school organization receiving a donation under this chapter or any nonpublic school which the eligible student seeks to attend.
XV. "Release of information form" means a document developed by a receiving nonpublic school, signed by the parent or guardian of an eligible student, and which acknowledges the consent of the parent or guardian to release of information contained in the receipt.
XVI. "Scholarship impact survey" means a document developed by the [department of education] management commission and given to the parents of students who have exited a public school under the provisions of RSA 77-G:8. The survey shall solicit the reasons for seeking the scholarship, and any suggested improvements desired in the public school they are leaving.
XVII. "Scholarship organization" means a charitable organization incorporated or qualified to do business in this state that:
(a) Is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code;
(b) Complies with applicable state and federal anti-discrimination and privacy laws;
(c) Is registered with the director of charitable trusts; and
(d) Has been approved by the [department of revenue administration] management commission for the purpose of issuing private school and home school scholarships as provided in this chapter.
6 New Paragraphs; Definitions; Workforce Development Program Grant. Amend RSA 77-G:1 by inserting after paragraph XX the following new paragraphs:
XXI. "Workforce development program" means a program that meets the purposes of this chapter and is approved by the management commission. A workforce development program includes programs in career and technical education, the New Hampshire Career Pathways program, Dual Pathways, and Running Start programs, including tuition payments for public school students.
XXII. "Workforce development program grant" or "grant" means a grant to a public school organization approved by the management commission to carry out a workforce development program administered by the program administrator.
7 Private and Home Education Scholarships. Amend the section heading of RSA 77-G:2 to read as follows:
77-G:2 Private and Home Education Scholarships.
8 Contributions. Amend RSA 77-G:3 to read as follows:
77-G:3 Contributions to Scholarship and Program Administration Organizations. For each contribution made to a scholarship organization or a program administration organization, a business organization, business enterprise, or individual may claim a credit equal to 85 percent of the contribution against the business profits tax due pursuant to RSA 77-A, against the business enterprise tax due pursuant to RSA 77-E, against the tax on interest and dividends under RSA 77, or apportioned against each provided the total credit granted shall not exceed the maximum education tax credit allowed. Credits provided under this chapter shall not be deemed taxes paid for the purposes of RSA 77-A:5, X. The department of revenue administration shall not grant the credit without a scholarship receipt. No business organization, business enterprise, or individual shall direct, assign, or restrict any contribution to a scholarship organization for the use of a particular student or nonpublic school. No business organization, business enterprise, or individual shall receive more than 10 percent of the aggregate amount of tax credits permitted in RSA 77-G:4.
9 New Sections; Education Tax Credit Management Commission; Public School Grant Program. Amend RSA 77-G by inserting after section 5 the following new sections:
77-G:5-a Education Tax Credit Management Commission. There shall be a commission known as the education tax credit management commission.
I. The education tax credit management commission shall include the following members:
(a) One member of the senate appointed by the president of the senate.
(b) Two members of the house of representatives appointed by the speaker of the house of representatives.
(c) The commissioner of the department of education, or designee.
(d) One member appointed by the Business and Industry Association of New Hampshire.
(e) One member appointed by the New Hampshire School Administrators Association.
(f) One member appointed by the New Hampshire School Boards Association.
(g) One member appointed by the Parent Information Center.
(h) One member appointed by the New Hampshire Association of CTE directors.
(i) One member appointed by the New Hampshire Alliance for Public Charter Schools.
(j) One member appointed by New Hampshire Charitable Foundation.
II.(a) Legislative members of the committee shall receive mileage at the legislative rate when attending to the duties of the commission.
(b) At the first meeting, the members of the commission shall elect a chairperson from among the members.
III. The commission's duties shall be to:
(a) Administer the public school grant program in accordance with the purposes and requirements established in this chapter.
(b) Develop and issue a request for proposals from organizations wishing to serve as program administrator.
(c) Select the program administrator.
(d) Provide overall management and policy direction to the program administrator in administering the public school grants program.
(e) Set policies, qualifications, and priorities for the public school grants program.
77-G:5-b Public School Grant Program.
I. The purposes of the public school grant program shall be:
(a) Supporting and enhancing schools or districts in educational efforts to meet the workforce needs of New Hampshire businesses; and
(b) Improving the opportunity of low-income and underachieving students to enter successfully the workforce.
II. All New Hampshire public school organizations are eligible to receive donations. The highest priority of the management commission shall be to fund projects sponsored by public school organizations serving municipalities with property values lower than the state average in the most recently available reports avaliable from the department of revenue administration.
III. By May 1 of each year, the management commission shall issue a request for proposals (RFP) soliciting projects that meet the objectives in this section. By September 15 of each year, schools and districts may respond with proposals describing projects and programs to be implemented starting in the following school year. By December 31 of each year, the management commission shall identify those projects eligible to receive grants under this chapter.
IV. The program administrator shall:
(a) Administer eligible donations designated for workforce development programs designated by donors and approved by the management commission.
(b) Not use more than 10 percent of eligible donations used during the program year in which the donations are collected, and for which grant receipts were issued for tax credit purposes, for administrative expenses. Administrative expenses shall be reasonable and necessary for the organization's management and distribution of eligible contributions pursuant to this chapter.
(c) In each program year, contributions may be carried forward to the following program year.
(d) Maintain separate accounts for tax-credit funded contributions, non-tax credit donations, and operating funds.
(e) A business organization, business enterprise, or individual shall submit an education tax credit application to the department of revenue administration no later than May 31 of each program year. Applications received after May 31 shall be processed for the following program year and approved within 30 days of receipt. Applications shall be processed on a first-come, first-served basis, up to the aggregate tax credit amount allowed under RSA 77-G:4. If multiple education tax credit applications are received on the same day, they shall be processed at random. No business organization, business enterprise, or individual shall be granted an education tax credit for more than 10 percent of the aggregate tax credit amount permitted in RSA 77-G:4. The department of revenue administration may approve only a portion of a request if required to prevent exceeding the aggregate tax credit amount allowed under RSA 77-G:4. The approval shall include the amount allowed and the date of approval.
(f) Once an education tax credit application is approved, the business organization, business enterprise, or individual shall donate no later than 60 days after the date of approval, and no later than June 30 of the program year during which its application was approved or the request shall expire. Donations may be made to multiple scholarship organizations provided the total amount donated by the business organization, business enterprise, or individual does not exceed the amount approved,
(g) Upon receiving a donation, the program administrator shall send a receipt to the department of revenue administration and to the business organization, business enterprise, or individual within 15 days. The department of revenue administration shall notify the program administrator and the business organization, business enterprise, or individual within 15 days if the donations made exceeds the amount approved. If a business organization, business enterprise, or individual fails to donate the total amount approved within the time permitted. the department of revenue administration may grant credit requests in the order specified in subparagraph (e).
(h) A business organization, business enterprise, or individual may file for the tax credit after receiving the scholarship receipt, and may file a tax credit request for the subsequent program year up to the amount donated in the current program year.
10 Department of Revenue Administration; Requirements. Amend RSA 77-G:6, I(a)-(d) to read as follows:
(a) Develop, and annually verify and update, by February 1, a list [of] that includes the program administrator and the eligible nonprofit scholarship [funding] organizations that meet the requirements of this chapter. The department shall post this list on the department's Internet website and update the list monthly. The department shall forward the list and any updates to the commissioner of the department of education who shall post the list on the department of education's Internet website.
(b) Conduct or require audits in response to any reasonable complaints made. The cost of an independent audit shall be paid by the program administrator or the scholarship organization, but this cost shall be excluded from the administrative expenses requirement set forth in RSA 77-G:5, I(f) or RSA 77-G:5-b, IV(b).
(c) Establish a process by which individuals may notify the department of revenue administration of any violation by the program administrator, a parent, a business organization, a business enterprise, a scholarship organization, or a nonpublic school of state laws relating to program participation. The department of revenue administration shall conduct an inquiry of any written complaint of a violation of this chapter, or make a referral to the appropriate agency for an investigation, if the complaint is signed by the complainant and is legally sufficient. A complaint is legally sufficient if it contains facts demonstrating a violation of this chapter or any rule adopted pursuant to this chapter. In order to determine legal sufficiency, the department of revenue administration may require supporting information or documentation from the complainant.
(d) Create, maintain, and post online the relevant forms and all reports under this chapter, and submit scholarship organization reports to the members of the house and senate education committees and to the department of education.
11 Exceptions. Amend RSA 77-G:9, III to read as follows:
III. Donations made by a business organization, business enterprise, or individual to a scholarship organization or a program administrator that are not for the purpose of obtaining a tax credit under this chapter shall not be subject to the requirements in this chapter.
| Date | Body | Type |
|---|---|---|
| March 13, 2019 | Senate | Hearing |
| March 28, 2019 | Senate | Floor Vote |
| March 27, 2019 | Senate | Floor Vote |
Sept. 25, 2019: Inexpedient to Legislate, Senate Rule 3-23, Adjournment 09/25/2019; SJ 1
March 28, 2019: Pending Motion Committee Amendment # 2019-1203s; 03/28/2019; SJ 11
March 28, 2019: Sen. D'Allesandro Moved Laid on Table, RC 15Y-8N, MA; 03/28/2019; SJ 11
March 28, 2019: Committee Report: Ought to Pass with Amendment # 2019-1203s, 03/28/2019; SC 15
March 27, 2019: Committee Report: Ought to Pass with Amendment # 2019-1203s, 03/27/2019; SC 15
March 13, 2019: Hearing: 03/13/2019, Room 100, SH, 09:15 am; SC 13
Jan. 3, 2019: Introduced 01/03/2019 and Referred to Ways and Means; SJ 4