Scholarship-granting organizations authorization

SF 3878 authorizes Minnesota to participate in a federal tax-credit program for scholarship-granting organizations (SGOs). It defines SGOs as 501(c)(3) nonprofits that must comply with federal Treasury rules, award scholarships to at least ten students (prioritizing returning students and siblings), spend 90% of funds on scholarships, and verify household income. SGOs must annually report compliance to the Minnesota Department of Education, which will post a list of qualifying organizations on its website. The bill explicitly states it does not give school districts or the state additional control over nonpublic schools or students.