a)
Before
granting a scholarship for an academic year, all scholarship granting
organizations shall assess and document each student's eligibility for the
academic year. For purposes of determining student eligibility for a
school year, an SGO may use the most recently-available tax returns for
purposes of determining a household's federal adjusted gross income.
b)
A scholarship granting
organization shall grant scholarships only to eligible students. Any
eligible student may apply to an SGO for a scholarship. An SGO may not impose
any eligibility requirements to apply for or receive a scholarship beyond those
contained in this Part or restrict the issuance of scholarships to any group of
students.
c)
A scholarship
granting organization shall allow an eligible student to attend any qualified
school of the student's choosing, subject to the availability of funds
and subject to the school being recognized by the Board pursuant to Section
2-3.25o of the School Code prior to the transfer of scholarship funds to the
school. Beginning January 1, 2022, a scholarship granting
organization shall allow an eligible student to attend any registered technical
academy of the student's choosing, subject to the availability of funds and
subject to the school being registered by the Board pursuant to Section 2-3.25
of the School Code prior to the transfer of scholarship funds to the school.
The technical academy must obtain recognition from the Board pursuant to
Section 2-3.25o of the School Code within 2 calendar years of its registration
with the Board to remain eligible to receive scholarship funds on behalf of an
eligible student.
d) Priority
Groups
1) Through June 9, 2022, in
granting scholarships, a scholarship granting organization shall give
priority to the following priority groups:
A)
eligible students who received a
scholarship from a scholarship granting organization during the previous school
year;
B)
eligible
students who are members of a household whose previous year's total annual
income does not exceed 185% of the federal poverty level;
C)
eligible students who reside
within a focus district determined by the Board;
and
D)
eligible
students who are siblings of students currently receiving a
scholarship from a scholarship granting
organization.
2)
Beginning
in the 2022-2023 school year, and on and after June
10, 2022 (the effective date of
P.A.
102-1059)
, and for each school year
thereafter, in granting scholarships, a scholarship granting organization shall
give first priority to eligible students who received a scholarship from a
scholarship granting organization during the previous school year. Second
priority shall be given to the following priority groups:
A)
eligible students who are members
of a household whose previous year's total annual income does not exceed 185%
of the federal poverty level;
B)
eligible students who reside
within a focus district determined by the Board;
and
C)
eligible
students who are siblings of students currently receiving a
scholarship from a scholarship granting organization
.
3) All
eligible students given second priority must be treated equally for purposes of
awarding scholarships, and eligible students in the second priority group do
not receive a preference when applying for a scholarship in a subsequent year.
EXAMPLE: Student A files his application on February 1, resides
in a focus district and is applying for a scholarship for the first time.
Student B files her application on February 15, resides in a focus district and
received a scholarship the previous school year. Student C files his
application on February 17, is a sibling of Student D and is applying for a
scholarship for the first time. Student D files her application on March 1 and
received a scholarship from an SGO in the previous school year. Students B and
D receive priority over Students A and C. When awarding scholarships to
Students B and D, the SGO must award scholarships based on the date and time
their applications are received. Subsequently, when awarding scholarships to
Students A and C, the SGO must award scholarships based on the date and time
their applications are received.
4) An eligible student who received a
scholarship from any SGO during the previous school year qualifies under
subsection (d)(2).
EXAMPLE: Student A applies for a scholarship with SGO X.
Student A received a scholarship from SGO Y during the previous school year.
Student A qualifies as a priority student and will receive first priority for
the coming school year.
e) Granting of Scholarships by SGOs
A scholarship granting organization shall begin
granting scholarships no later than February 1 preceding the school year for
which the scholarship is sought. Each priority group identified in subsection
(d) shall be eligible to receive scholarships on a first-come, first-served
basis until April 1 immediately preceding the school year for which the
scholarship is sought starting with the priority groups in accordance with
subsection (d). Applications for scholarships for eligible students meeting the
qualifications of one or more priority groups that are received before April 1
must be either approved or denied within 10 business days after
receipt. The date of receipt for purposes of beginning the 10-day
period during which the SGO must approve or deny an application shall be the
date on which the SGO has sufficient information to determine if the applicant
is an eligible student and is in a priority group. Beginning April 1,
all eligible students shall be eligible to receive scholarships without regard
to the priority groups identified in subsection (d).
1) For purposes of this subsection (e),
"granting scholarships" means that the SGO has reviewed an application,
determined the applicant is an eligible student, and notified the applicant
that the applicant will receive a scholarship to attend the school chosen by
the student, subject to availability of funds and subject to the school being
recognized by the Board pursuant to Section 2-3.25o of the School Code prior to
the transfer of scholarship funds to the school.
2) An SGO may begin accepting applications
after it has been approved by the Department to issue CORs. (See Section
1000.300.) An SGO may require
each student applying for a scholarship to file the student's own application.
An SGO may allow a household to file one application for multiple students
residing in the household. If a household files an application for multiple
students residing in the household, the application for each student shall be
deemed received in the order the students appear in the application.
A) On and after April 1, an SGO may suspend
accepting or reviewing applications from students when the SGO determines that
the funds that are or will be available for awarding scholarships is
insufficient to meet demand based on the number of applications received. Prior
to suspending review of applications, the SGO shall review a reasonable number
of applications in the event additional funds become available.
B) Upon the request of, or with permission
of, the student, an SGO may transfer a student's application to another SGO,
subject to the approval of the receiving SGO. The receiving SGO must stamp the
application with the date and time it is actually received and process the
application in accordance with this Section. For example, within 10 days after
receipt of the application, the SGO must verify the student's eligibility and
determine whether the student should receive priority under subsection (d) due
to the student's status as a member of a priority group. (See subsection (e).)
The transferring SGO no longer has any obligation to process the student's
application.
3) An
applicant may file applications with more than one SGO. However, an eligible
student may accept only one scholarship provided for under the terms of the
Act. Nothing in the Act prohibits an eligible student from receiving other
scholarships from an SGO or other source that are paid from funds not subject
to the Act.
4) An SGO must stamp
all applications with the date and time they are actually received. An SGO may
implement a two-stage application process if it is necessary to enable the SGO
to accept and process a large number of applications. If an SGO implements a
two-step application process:
A) during the
first step, the SGO shall obtain the name of the student and the student's home
and email address, record the date and time when the information is received,
and provide the student a unique identification number. If a custodian
initiates the first step, the custodian must provide the names of all students
who will be completing applications using the unique identification number;
and
B) during the second step, the
student or custodian must complete the application for scholarship. The date
this step is completed is the date that is used to determine if a student's
application is received prior to April 1.
5) For a student to receive priority under
subsection (d) due to the student's status as a member of a priority group, the
SGO must receive the student's application before April 1.
6) An SGO must review all applications to
determine if an applicant is an eligible student and meets the qualifications
of one or more priority groups identified in subsection (d). Applicants who
meet the qualifications of one or more priority groups shall be placed in
Category 1. Applicants who do not meet the qualifications of one or more
priority groups will be placed in Category 2.
A) If the SGO determines the application does
not contain sufficient information to determine whether the applicant is an
eligible student or meets the qualification of one or more priority groups, it
shall contact the applicant and request the information necessary to make these
determinations.
i) If the applicant fails to
provide the SGO, within 10 days, with the information necessary to determine if
the applicant is an eligible student, the application is deemed rejected. An
applicant whose application has been rejected may file a new application. The
new application shall be stamped with the date and time received and processed
accordingly.
ii) If the applicant
provides the SGO with the information necessary to determine that the applicant
is an eligible student, but fails to provide, within 10 days, the information
necessary to determine whether the applicant is in a priority group, the
applicant shall be deemed not to be in a priority group. If the applicant
provides the information necessary to confirm that the applicant is in a
priority group after the 10 days have expired and if funds are available or
become available prior to April 1, the application shall be processed based on
the date and time the application was first received. If funds are not
available prior to April 1, the application shall be placed in Category 2 and
processed based on the date and time the application was received.
iii) Applications filed before April 1 must
contain sufficient information to enable the SGO to determine by April 1
whether the applicant is an eligible student or a priority student. If the
application does not contain sufficient information by April 1 to determine
whether the applicant is an eligible student, the application is deemed
rejected. If the application contains sufficient information by April 1 to
determine whether the applicant is an eligible student, but does not contain
sufficient information by April 1 to determine whether the applicant is in a
priority group, the application shall be placed in Category
2.
B) Prior to April 1,
an SGO may make an initial determination whether an applicant is a member of a
priority group. If it is determined the applicant is not a member of a priority
group, the application may be placed in Category 2. The SGO may complete review
of applications from students that are determined to be members of a priority
group prior to completing review of the applications from applicants that the
SGO has confirmed are not members of a priority group.
7) Prior to April 1, SGOs shall grant
scholarships to applicants in Category 1 in the order in which the applications
were received.
8) On and after
April 1, SGOs shall grant scholarships to applicants in the following order
based on the order in which they were received:
A) Category 1 applications received prior to
April 1;
B) Category 2 applications
received prior to April 1; and
C)
all applications received on or after April 1.
EXAMPLE: Applications are received by an SGO in the following
order: Student A on March 27. Student B on March 28. Student C on March 29.
Student D on March 30. Student E on March 31. Student F on April 1. Student G
on April 2. Student H on April 3. Student I on April 4. Students A and C are in
the first priority group identified in subsection (d)(2). E and G are in the
second priority group identified in subsection (d)(2). The SGO has 10 business
days from receipt of application to notify priority Students A, C and E whether
their applications are granted or denied. Even though Student G fell within one
of the priority groups identified in subsection (d), his application was
received after April 1 and thus does not receive priority treatment (see
subsection (e)(5)). Scholarships must be granted in the following order: A, C,
E, B, D, F, G, H, I.
9) For purposes of determining the
eligibility of the student to receive a scholarship, an SGO may not impose any
criteria or conditions in addition to those contained in the Act.
10) An SGO may impose a deadline of not less
than 10 days for a student to accept a scholarship if the scholarship
notification sent to the student identifies the school and amount awarded to
attend the school and states that funds are available for the student to attend
the school.
f)
Determination of Scholarship Amounts by SGO
Except as provided in subsection (f)(2)
, scholarships shall not exceed the lesser of the statewide average
operational expense per student among public schools or the necessary costs and
fees for attendance at the qualified school. A qualified school may set a lower
maximum scholarship amount for eligible students whose family income falls
within subsections (f)(3)(B) and (f)(3)(C); that amount may
not exceed the necessary costs and fees for attendance at the qualified school
and is subject to the limitations on average scholarship amounts set forth
in subsections (f)(3)(B) and (f)(3)(C), as applicable. The
qualified school shall notify the scholarship granting organization of its
necessary costs and fees as well as any maximum scholarship amount set by the
school [35 ILCS 40/40 ]. The necessary
costs and fees for attendance at the qualified school shall be determined in
the same manner for eligible students as they are for all other
students.
1) On or before January 15
each year, the Board shall provide to the Department the statewide average
operational expense per student among public schools.
2)
The statewide average operational
expense per student among public schools shall be multiplied by the following
factors:
A)
for students
determined eligible to receive services under the federal Individuals with
Disabilities Education Act (20 U.S.C.
1400 et seq.)
,
2;
B)
for students
who are English learners, as defined in Section 14C-2(d) of the School Code,
1.2; and
C)
for
students who are gifted and talented children, as defined in Section 14A-20 of
the School Code, 1.1.
3) The statewide average operational expense
per student among public schools shall be multiplied by the factors in
subsections (f)(2)(A) through (C) for students who meet those factors,
regardless of whether the school selected by the student provides defined
programs for these students. After determining the lesser of the statewide
average operational expense per student among public schools (adjusted as
necessary for each applicant in accordance with subsection (f)(2)) and the
necessary costs and fees for attendance at the qualified school selected by an
applicant, the SGO shall calculate the scholarship amount as follows:
A)
for eligible students whose
household income is less than 185% of the federal poverty level, the
scholarship shall be 100% of the amount determined by subsections
(f)(2) and (f)(3).
B)
for eligible students whose
household income is 185% or more of the federal poverty level but less than
250% of the federal poverty level, the average of scholarships shall be 75% of
the amount determined. An SGO is presumed to meet the requirements of
this subsection (f)(3)(B) if it provides a scholarship to each eligible student
meeting these income levels in the amount of 75% of the amount determined by
subsections (f)(2) and (f)(3).
C)
for eligible students whose household income is 250% or more of the
federal poverty level, the average of scholarships shall be 50% of the amount
determined. An SGO is presumed to meet the requirements of this
subsection (f)(3)(C) if it provides a scholarship to each eligible student
meeting these income levels in the amount of 50% of the amount
determined.
g)
An SGO shall distribute scholarship payments to the participating
school where the student is enrolled. Payments must be made by the SGO
directly to the participating school. Prior to distributing payments to a
school, the SGO shall verify that the school is recognized by the Board
pursuant to Section 2-3.25o of the School Code. An SGO may request verification
from the school that an eligible student has met all the requirements for
enrollment and has enrolled in the school prior to distribution of scholarship
payments to the school. An SGO may make payments to a participating school
where an eligible student has enrolled under the same terms and conditions as
similarly situated students that are not awarded scholarships under the Act.
(See Section
1000.700(a)(1)(A) through
(D).)
h)
For the 2018-2019 school year
through the 2022-2023 school year, each SGO shall expend no less than 75% of
the qualified contributions received during the calendar year in which the
qualified contributions were received. No more than 25% of the qualified
contributions may be carried forward to the following calendar
year.
i)
For the
2023-2024 school year, each SGO shall expend all qualified contributions
received during the calendar year in which the qualified contributions were
received, as well as any amount carried forward from the previous
year. No qualified contributions may be carried forward to the
following calendar year.
j)
An SGO shall allow an eligible
student to transfer a scholarship during a school year to any other
participating school of the custodian's choice, subject to the
availability of funds
. These scholarships shall be prorated.
(See Section
1000.700(e).)
EXAMPLE: An eligible student selects School A and is awarded a
scholarship by the SGO. The SGO uses funds for the scholarship that were
designated by an individual taxpayer for School A. The student decides to
transfer to School B mid-year. The SGO does not have any available funds that
were designated for School B, nor does it have any undesignated funds available
for School B. The student may attend School B but the student will lose the
student's scholarship because the SGO does not have any funds that are
available for the student to attend School B.
k)
With the prior approval of the
Department, an SGO may transfer funds to another scholarship granting
organization if additional funds are required to meet scholarship demands at
the receiving scholarship granting organization or if necessary for
the SGO seeking to transfer the funds to remain in compliance with the
requirements of this Part. Funds transferred before June 1
must be used for scholarships in the same region to which the funds were
originally directed in the CAC issued to the taxpayer. All transferred
funds must be deposited by the receiving SGO into its scholarship accounts. All
transferred amounts received by any SGO must be separately disclosed to the
Department.
l)
If
the approval of an SGO is revoked as provided in Section 20 of the Act or the
SGO is dissolved, all remaining qualified contributions of the SGO shall be
transferred to another SGO. An SGO is deemed dissolved when it no
longer has approval from the Department to award scholarships. This may occur
when an SGO elects to voluntarily terminate its status as an SGO during a
calendar year after having received approval of its application by the
Department or when the SGO does not seek recertification pursuant to Section
1000.1000. Funds must be
transferred within 10 business days. Within 3 business days after the transfer,
the revoked SGO must notify the Department of the amount transferred and the
name and address of the receiving SGO or SGOs. Funds transferred before June 1
must be used for scholarships in the same region to which the funds were
originally directed in the CAC issued to the taxpayer.
All transferred
funds must be deposited by the receiving SGO into its scholarship
accounts.
m)
SGOs
shall make reasonable efforts to advertise the availability of scholarships to
all eligible students. SGOs may not limit those efforts to any one
school or subset of schools. [35 ILCS 40/40 ]
