The State-Aided Educational Institutions program is created to provide State funding and support to nonprofit organizations that provide unique, educational experiences to students and teachers that cannot be replicated in the classroom. These educational experiences are aligned with Maryland curricular and educational priorities. In this chapter, the following terms have the meanings indicated. Terms Defined. “Board” means the Maryland State Board of Education. “Department” means the Maryland State Department of Education. “Nonprofit organization” means an organization that: Is based in the State; Is incorporated or registered under the laws of the State; Is exempt from federal income tax under §501(c)(3), (4), or (6) of the Internal Revenue Code; and Is current in the payment of all tax obligations to the State or any unit or subdivision of the State. To be considered for funding, an educational institution shall qualify as a State-aided educational institution. To qualify as a State-aided educational institution, an educational institution shall submit to the Department the following documentation: Names of the members of an independent governing board for the institution; Proof of status as a nonprofit organization; A copy of the most recent independent annual audit or copies of the most recent internally generated financial statements until the annual audit is available; A detailed operating budget that: For an educational institution other than the Baltimore Zoo, indicates that less than 50 percent of the operating budget comes from State grants; Specifies all sources of income, including: Grants received; Names of granting agencies; and The amount of each grant; and Specifies all expenditures; Plans for the use of any grant funds that may be awarded by the State-Aided Educational Institutions grants program; Evidence of the provision of a direct service to Maryland school groups or to individuals with disabilities, including: Data on age levels of students to be served; Data on the projected number of students and teachers to be served both Statewide and by local jurisdiction; and Plans of the institution to support the Maryland curricular and educational priorities; Evidence of liability insurance coverage; and Evidence that the educational program for which funding is sought is not a new program and can show a track record of success. An organization that seeks funding through the State-Aided Educational Institutions program in the fiscal year following the upcoming fiscal year shall submit to the Department: A fiscal impact statement describing: The program for which funding is sought; Amount of funds requested; Populations to be served; Educational goals and objectives; and Anticipated outcomes; An augmentation request describing: Who will be served; Objectives of the educational program; and Anticipated outcomes; and An application for qualification as a State-aided educational institution containing supporting documentation as described in Regulation .03 of this chapter. The Department shall review applications for qualification as a State-aided educational institution and shall submit a list of the qualified institutions to the State Superintendent of Schools. The State Superintendent of Schools shall: Review and comment on the institutions on the list of qualified institutions and the extent to and manner in which each would forward the goals of the Maryland curricular and educational priorities; and Present the list of qualified institutions and comments on each institution to the Board for review and comment by the Board at the August meeting. The Board shall submit to the Governor after the August meeting: The list of qualified institutions; The State Superintendent of Schools’ comments on each institution; and The Board’s comments, if any, on each institution. Each institution funded through the State-Aided Educational Institutions program shall submit the following annual reports: Midyear/Interim Progress Report; Managing for Results (MFR) Report; and Annual Progress Report. The Department will conduct an annual site visit for each nonprofit organization funded through the State-Aided Educational Institutions program. Education Article, §§5-501—5-506, Annotated Code of Maryland Effective date: June 1, 2020 (47:11 Md. R. 560)