Ala. Admin. Code r. 810-3-61-.07 - Continuing Eligibility Of Scholarship Granting Organization (SGO) To Participate In The Tax Credit Scholarship Program
(1) Scope: Act 2013-64, as amended by Acts
2013-265 and 2015-434, establishes certain requirements for the operation of
Scholarship Granting Organizations (SGOs) and requires SGOs to report certain
information to the Department of Revenue. The Acts also authorize the
department to bar an SGO from participating in the Tax Credit Scholarship
Program (program) if the department establishes that the SGO has intentionally
and substantially failed to comply with the requirements of the program. This
rule prescribes the process of notifying an SGO of its non-compliance with a
requirement, the effect of such notice on the operation of the SGO, and the
steps required of the SGO to be reinstated to the program.
(2) Each SGO shall file reports with the
department containing the information explained in Rule
810-3-61-.05, by the following
due dates:
(1) the annual report shall be due
on the first day of September of each calendar year, and
(2) each quarterly report shall be due on the
fifteenth day of the month following the close of the previous calendar year
quarter.
(3) The
required reports shall be on forms prescribed by the department.
(4) If any required report for an SGO has not
been received by such report's due date, the SGO will be deemed to have
intentionally and substantially failed to comply with the requirements of the
program. An SGO filing a delinquent annual report may attach an explanation of
any circumstances preventing the timely filing of the report. Upon review of
any explanations provided, the department may excuse the delinquency if
warranted.
(5) The SGO shall
complete the Summary of Compliance section of the annual report, based on the
numbers, dollars and percentages reported elsewhere in the report. If the SGO
answers "NO" to any compliance question, it may attach to the report
documentation explaining any extraordinary circumstances preventing the
requirement from being met.
(6) The
review of the initial annual report, timely filed by an SGO, will not result in
a determination of intentional and substantial failure to comply with the
requirements of the program, solely because of "NO" answers shown in the
Summary of Compliance section of the SGO's report. Such "NO" answers will
indicate failure to comply with the requirements, but shall not be deemed to be
intentional and substantial.
(7)
Annual reports for years after the initial year of operation of an SGO will be
reviewed for any answers that should be listed as "NO" in the Summary of
Compliance section. Any such "NO" answers will indicate failure to comply with
the requirements of the program. Any documentation of extraordinary
circumstances attached to the report may be considered by the department in
determining whether the failure to comply will be deemed intentional and
substantial.
(8) If an SGO's answer
to any particular compliance question is, or should be, reported as "NO" for
two consecutive annual reports, the SGO will automatically be deemed to have
intentionally and substantially failed to comply with the requirements of the
program.
(9) Upon a determination
that an SGO has intentionally and substantially failed to comply with the
requirements of the program, or after September 30th in the case of a missing
annual report, the department will notify an SGO of its determination and of
its intention to suspend the eligibility of the SGO to participate in the Tax
Credit Scholarship Program. Unless appealed, as provided in (10) below, the
suspension shall become effective 30 days from the date the notice is mailed to
the SGO.
(10) The determination to
suspend an SGO from participating in the Tax Credit Scholarship Program may be
appealed by the SGO, in the same manner as the denial or revocation of
licenses, permits, and certificates of title administered by the department, as
provided in Code of Ala. 1975, Section
40-2A-8; within 30 days of the
date notice of the department's determination is mailed to the SGO.
(11) An SGO whose participation in the Tax
Credit Scholarship Program has been suspended will be removed from the
department's website through which donors reserve tax credits for contributions
under the program. No tax credits will be allowed for donations made to an SGO
during a period of suspension.
(12)
An SGO whose participation in the program has been suspended, and whose name
has been removed from the department's website through which donors reserve tax
credits for contributions must, nevertheless, account for funds and award
scholarships in accordance with the requirements of the program. All annual
reports due, regardless of any suspension, must be timely filed.
(13) Upon receipt and review of a timely
filed annual report for a year ending during a period of suspension, the
department may reinstate the SGO to participation in the program, if the
answers to all questions in the Summary of Compliance section of the report are
properly reportable as "YES". Tax credits may be allowed for donations made
after reinstatement of the SGO.
(14) If the department concludes that any
"YES" answer reported in the Summary of Compliance section of an annual report
should have been reported as "NO" or if the department concludes that the SGO
has failed to comply with the requirements of the program for another reason,
the department will allow the SGO an opportunity to contest the department's
conclusion, and to provide documentation explaining any extraordinary
circumstances causing the failure to comply, before determining that the
failure to comply with the requirements of the program will be considered
intentional and substantial.
Notes
Authors: Curtis Stewart, Neal Hearn
Statutory Authority: Code of Ala. 1975, ยงยง 40-2A-7(a)(5), 16-16D-1.
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