77-7110.

Scholarship-granting organization; certification; requirements.

(1) For purposes of this section:

(a) Net revenue means the total amount of revenue received by a scholarship-granting organization during a state fiscal year minus the amount of such revenue that is used or reserved for the administrative costs of such organization for the same state fiscal year;

(b) Revenue means all grants, donations, and contributions received by a scholarship-granting organization for the purpose of providing education scholarships; and

(c) State fiscal year means the period of time commencing on July 1 and ending on June 30 of the following year.

(2) In order for a scholarship-granting organization to remain certified under the Opportunity Scholarships Act, the scholarship-granting organization shall allocate its revenue as follows:

(a) If the annual limit on tax credits under section 77-7109 is less than thirty-five million dollars, the scholarship-granting organization shall allocate at least ninety percent of its revenue for education scholarships and no more than ten percent of its revenue shall be used or reserved for administrative costs; or

(b) If the annual limit on tax credits under section 77-7109 is thirty-five million dollars or more, the scholarship-granting organization shall allocate at least ninety-five percent of its revenue for education scholarships, and no more than five percent of its revenue shall be used or reserved for administrative costs.

(3) For purposes of subsection (2) of this section, revenue is allocated when it is expended or otherwise irrevocably encumbered for expenditure. The percentage of revenue allocated for education scholarships shall be measured as a monthly average over the most recent twenty-four-month period or, for a scholarship-granting organization that has been certified for less than twenty-four months, over the period of time that the scholarship-granting organization has been certified.

(4) Beginning January 1, 2028:

(a) A scholarship-granting organization shall carry forward no more than twenty-five percent of its net revenue from one state fiscal year to the following state fiscal year. Any amount carried forward shall be expended for annual or partial-year education scholarships in the following state fiscal year; and

(b) Any amount of net revenue remaining on June 30 of any state fiscal year that is in excess of the amount that may be carried forward under subdivision (a) of this subsection shall be used to provide education scholarships to eligible students or transferred to one or more other scholarship-granting organizations to provide education scholarships to eligible students by no later than the following September 30. Any amount of such net revenue that is not used or transferred by the following September 30 shall be remitted to the State Treasurer for credit to the General Fund. Any scholarship-granting organization receiving a transfer pursuant to this subdivision shall place the transferred funds into its scholarship account and shall separately disclose the transfer in its annual financial audit.