1. (1) A school district board of education may establish a scholarship program for students who receive a high school diploma from the school district or successfully complete a high school equivalency examination while enrolled in the school district. The scholarships must be funded from additional mill levy revenue that is approved pursuant to section 22-54-108; from gifts, grants, or donations that the school district receives for purposes of the scholarship program; or from a combination of both. A board of education that establishes a scholarship program is strongly encouraged to:

   1. (a) Prioritize scholarships for students who are eligible for free or reduced-price meals pursuant to the provisions of the federal Richard B. Russell National School Lunch Act, 42 U.S.C. sec. 1751 et seq., and students whose parents do not have a postsecondary credential, to facilitate awarding scholarships to increase graduates' access to postsecondary education; and
   2. (b) Limit the use of scholarship money to tuition, books and supplies, and transportation.

Source: L. 2021: Entire section added, (HB 21-1112), ch. 154, p. 879, § 1, effective May 18.