1. (a) An agreement entered into under section 1 of this chapter must prohibit a scholarship granting organization from distributing school scholarships for use by an eligible student to:

   1. (1) enroll in a school that has:

      1. (A) paid staff or board members; or

      2. (B) relatives of paid staff or board members;

         in common with the scholarship granting support organization;

   2. (2) enroll in a school that the scholarship granting organization knows does not qualify as a participating school; or
   3. (3) pay for the cost of education for a public school where the eligible student is entitled to enroll without the payment of tuition.
2. (b) An agreement entered into under section 1 of this chapter must prohibit a scholarship granting organization from limiting the availability of scholarships to students of only one (1) participating school. An agreement entered into under section 1 of this chapter before July 1, 2011, must be amended to include the requirement specified in this subsection.

As added by P.L.182-2009(ss), SEC.364. Amended by P.L.92-2011, SEC.9.