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MontanaSB 25369th Legislature, Regular Session (2025)SenateWALLET

Revise administrative and certification processes for student scholarship organizations

Sponsored By: Sue Vinton (Republican)

Signed by Governor

Education - K-12Taxation

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Stricter money rules for scholarship groups

Groups must use at least 90% of eligible donation revenue for scholarships each year, after subtracting the audit cost. Donations must be paid out within three calendar years. Groups must keep scholarship funds separate from operating funds and have a clear application process while following payment and reporting rules. Each year, an independent CPA review is due within 120 days of year‑end and must be filed within 150 days; missing filings get 30 days to fix and can lead to termination. Fund transfers to another group are allowed only after prior written notice to the department. These rules start October 1, 2025, and end December 31, 2029.

Scholarship amounts capped each year

A student’s scholarship for an academic year cannot be more than the per‑pupil average of total public school spending under 20‑9‑570. If a higher amount is requested, it is capped at that level. This cap starts October 1, 2025, and ends December 31, 2029.

New certification rules for scholarship groups

Student scholarship groups must be certified by the Department of Revenue before taking donations that qualify for the state tax credit. The department decides within 60 days. If denied, a group has 30 days to fix problems; final denials cannot be appealed, but the group can apply again next tax year. Only certified groups can take tax‑credit‑eligible donations; uncertified groups must finish paying out prior scholarship funds under the law. These rules start October 1, 2025, and end December 31, 2029.

Parents can choose any qualified school

Scholarship groups cannot limit awards to one school or a type of provider. Parents can use scholarships at any qualified education provider. Each group must post its application steps and last year’s provider list on its website. The Department of Revenue posts the current certified groups, each group’s policies, and amounts given to non‑tutor providers. These choice and transparency rules start October 1, 2025, and end December 31, 2029.

One-time $206,000 to Revenue Department

The law provides $206,000 from the general fund to the Department of Revenue for the two‑year budget starting July 1, 2025. Lawmakers intend this as a one‑time amount to run the new rules.

Sponsors & Cosponsors

Sponsor

  • Sue Vinton

    Republican • Senate

Cosponsors

  • Randyn Gregg

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 416 • No: 134

Senate vote • 4/29/2025

Do Pass

Yes: 49 • No: 1

Senate vote • 4/28/2025

Do Pass

Yes: 44 • No: 6

House vote • 4/24/2025

Do Concur

Yes: 57 • No: 43

House vote • 4/23/2025

Do Concur

Yes: 57 • No: 43

House vote • 4/15/2025

Do Concur

Yes: 77 • No: 23

Senate vote • 3/21/2025

Do Pass

Yes: 45 • No: 5

Senate vote • 3/20/2025

Do Pass

Yes: 44 • No: 6

Senate vote • 2/28/2025

Do Pass

Yes: 43 • No: 7

Actions Timeline

  1. Chapter Number Assigned

    5/16/2025Senate

  2. Signed by Governor

    5/13/2025Senate

  3. Transmitted to Governor

    5/5/2025Senate

  4. Signed by Speaker

    5/5/2025House

  5. Signed by President

    5/2/2025Senate

  6. Returned from Enrolling

    4/30/2025Senate

  7. Sent to Enrolling

    4/29/2025Senate

  8. 3rd Reading House Amendments

    4/29/2025Senate

  9. 2nd Reading House Amendments

    4/28/2025Senate

  10. Returned to Senate with Amendments

    4/24/2025House

  11. 3rd Reading

    4/24/2025House

  12. 2nd Reading

    4/23/2025House

  13. Revised Fiscal Note Printed

    4/22/2025Senate

  14. Fiscal Note Unsigned

    4/22/2025Senate

  15. Revised Fiscal Note Received

    4/22/2025Senate

  16. Committee Report

    4/18/2025House

  17. Committee Executive Action

    4/18/2025House

  18. Hearing

    4/15/2025House

  19. Rereferred to Committee

    4/15/2025House

  20. 2nd Reading

    4/15/2025House

  21. Committee Report

    4/9/2025House

  22. Committee Executive Action

    4/9/2025House

  23. Revised Fiscal Note Printed

    3/27/2025Senate

  24. Hearing

    3/27/2025House

  25. Fiscal Note Unsigned

    3/26/2025Senate

Bill Text

  • Enrolled

    4/29/2025

    PDF

  • As Amended (Version 3)

    4/18/2025

    PDF

  • As Amended (Version 2)

    3/19/2025

    PDF

  • Introduced

    1/31/2025

    PDF

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