Florida Senate - 2008 (Reformatted) SB 346

By Senator Ring

32-00225-08 2008346__

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A bill to be entitled

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An act relating to student financial assistance; creating

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s. 1009.893, F.S.; creating the Sure Futures Postgraduate

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Scholarship Program to match private-sector businesses

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needing employees having advanced degrees with students

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who are seeking advanced degrees and employment;

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establishing the Sure Futures Foundation and a foundation

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board to administer the program; providing membership and

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duties of the foundation board; providing criteria for

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student and corporate partner participation in the

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program; requiring corporate partners to donate funds for

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scholarships; providing for corporate income tax credits

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for amounts donated; providing restrictions on tax

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credits; providing for scholarship conversion to a low-

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interest loan if certain student or employee obligations

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are not met; providing duties of the Department of

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Education and state universities; amending s. 220.02,

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F.S.; adding the new tax credit to the list of allowable

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credits; amending s. 220.13, F.S.; incorporating the new

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tax credit to the list of state corporate income tax

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credits that must be added to a taxpayer's adjusted

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federal income; providing rulemaking authority; providing

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an appropriation; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 1009.893, Florida Statutes, is created

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to read:

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     1009.893 Sure Futures Postgraduate Scholarship Program.--

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     (1) The Sure Futures Postgraduate Scholarship Program is

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created to establish a scholarship program to match private-

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sector businesses needing employees having advanced degrees with

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students who are seeking both advanced degrees and employment.

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The goals of the program are to provide for a better-educated

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workforce by offering students greater access to advanced degrees

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and to recruit and retain Florida's best and brightest graduate

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students by offering them comprehensive financial assistance and

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employment.

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     (2) The Sure Futures Foundation is established and shall

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seek tax-exempt status under s. 501(c)(3) of the Internal Revenue

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Code. The foundation shall be governed by the Sure Futures

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Foundation Board, which shall administer the Sure Futures

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Postgraduate Scholarship Program with guidance from the Board of

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Governors and the State Board of Education. Duties of the

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foundation board include, but are not limited to:

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     (a) Adoption of policies and procedures for implementation

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of the program, including approval of corporate partners and

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their scholarship criteria.

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     (b) Issuance of certificate letters to corporate partners

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acknowledging their eligibility for tax credits against their

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chapter 220 tax liabilities. The letters of certificate must be

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in a form developed by rule of the Department of Education.

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     (c) Establishment of a process for approving printed

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materials, marketing, and advertising.

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     (3) The foundation board shall be comprised of the

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following members:

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     (a) The Commissioner of Education as an ex officio member.

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     (b) The chair of the Board of Governors as an ex officio

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member.

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     (c) Four state university presidents selected by the State

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University Presidents' Association to serve 2-year terms.

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     (d) Four corporate partners participating in the program,

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recommended by the Commissioner of Education and selected by the

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Governor, to serve 2-year terms.

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     (e) One graduate student recommended by the Commissioner of

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Education and selected by the Governor to serve a 1-year term.

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The Commissioner of Education, the chair of the Board of

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Governors, the university presidents, and the corporate partners

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may designate a specific individual to represent them at board

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meetings. The foundation board members shall serve without

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compensation, but are entitled to receive reimbursement for

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travel and per diem expenses incurred in the performance of their

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duties in accordance with s. 112.061. The Department of Education

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shall provide administrative support and staff to the foundation.

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     (4)(a) The following students are eligible to obtain a list

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of Florida corporate partners and the graduate degree programs

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for which the partners are seeking candidates:

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     1. A student in his or her senior year who is an

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undergraduate student at a state university.

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     2. A student in his or her senior year who is an

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undergraduate student at an out-of-state university but who would

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otherwise qualify as a resident for purposes of in-state tuition.

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     3. A graduate of a state university who intends to pursue a

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graduate degree program at a state university.

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     (b) A student shall apply through the program to each

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individual corporate partner using a standard application form. A

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predetermined limit shall be established by the foundation board

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for the maximum number of applications a student may submit in a

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given scholarship cycle.

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     (c) After the initial candidate screening and interview

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phase, a student selected by a corporate partner shall sign a

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contract agreeing to borrow scholarship funds through the

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program, with a waiver-of-payment provision if a 4-year

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employment obligation is completed. The scholarship shall cover

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tuition, fees, and books for the degree program and room and

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board based on the university dormitory and meal plan rate for

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each year the student is enrolled full time as a graduate

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student.

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     (d) A student must maintain a minimum grade point average

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as determined by the corporate partner.

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     (e) If a student is unable to take a full course load

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during a summer semester, the student may be required by the

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corporate partner to participate in an internship program.

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     (f) Upon graduation with an advanced degree, a graduate

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shall begin working for the corporate partner and must remain

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employed in Florida by the partner for a minimum of 4 years as

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stipulated in the contract.

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     (g) If a student fails to maintain the required grade point

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average or the graduate terminates his or her employment before

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completing the 4-year obligation, a prorated portion of the

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scholarship shall convert to a low-interest loan.

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     (h) The contract signed by the corporate partner and the

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student must clearly state the terms of the loan, the company's

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expectations for the student's performance, employment

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requirements, and potential legal remedies if the terms and

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conditions of the contract are not met.

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     (5)(a) A corporate partner that desires new employees

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having advanced degrees shall make a monetary contribution to the

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program in amounts equal to the scholarship funds necessary for

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completion of a degree program from which it wishes to draw

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students. Contributions may be made in one lump sum or on an

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annual basis.

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     (b) A corporate partner may establish criteria, including,

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but not limited to, the degree sought and minimum grade point

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average and extracurricular activity requirements.

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     (c) A corporate partner may select the state universities

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at which students may enroll or it may allow its scholarships to

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be available for study at any state university.

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     (d)1. A corporate partner shall receive a credit against

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its corporate income tax liability equal to the amount of the

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contribution. For the first 2 years of the program, the total tax

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credits available to corporate partners shall be limited to $10

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million per year. Beginning with the third year of the program,

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as more corporate partners participate, the total tax credits

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available to corporate partners shall be increased, as specified

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by the Legislature. Beginning with the sixth year of the program,

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a tax credit shall be 75 percent of a contribution and, beginning

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with the eleventh year of the program, a tax credit shall be 50

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percent of a contribution.

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     2. A corporate partner shall submit copies of its

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certificate letter to the Department of Revenue at the time it

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claims a tax credit against its corporate income tax liabilities.

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     3. If the corporate partner cannot use the entire tax

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credit in the taxable year or reporting period in which the

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credit is awarded because of insufficient tax liability, any

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excess amount may be carried forward to a succeeding taxable year

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or reporting period, for up to 10 years, at which time the

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credits expire.

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     4. A corporation who files a Florida consolidated return as

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a member of an affiliated group pursuant to s. 220.131(1) may be

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allowed the credit on a consolidated return basis.

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     5. A corporation may not convey, assign, or transfer the

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credit authorized by this section to another entity unless all of

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the assets of the corporation are conveyed, assigned, or

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transferred in the same transaction.

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     (e) If a corporate partner terminates a scholarship

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employee for reasons other than malfeasance, misfeasance, or

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nonfeasance before the employee completes the 4-year obligation,

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the employee is not required to repay the scholarship. A

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corporate partner is encouraged to establish protocols to retain

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an employee prior to his or her termination.

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     (6)(a) The Office of Student Financial Assistance of the

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Department of Education shall establish a central database of

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corporate partners, the graduate degree programs for which the

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partners are seeking candidates, and student applicants and their

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profiles. The office shall establish a standard application for

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use by all state universities.

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     (b) On an annual basis, the Department of Education shall

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establish the amount necessary to cover the costs for degree

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programs for which corporate partners may make contributions and

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receive tax credits.

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     (7) Prepared documentation regarding the program shall be

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made available through the appropriate office at each state

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university. As deemed appropriate by its administration, a state

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university may provide additional information or activities, such

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as providing one-on-one discussions with advisors, conducting

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seminars on the program, or working with companies in its service

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area to create scholarships through the program.

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     (8) State agencies, local workforce boards, chambers of

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commerce, and Enterprise Florida, Inc., shall be encouraged to

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promote corporate partner and student participation in the

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program.

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     (9) The Department of Education shall adopt rules necessary

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to administer this section, including rules establishing

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application forms and procedures governing the certification of

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eligibility of corporate partners for tax credits under this

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section.

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     (10) The Department of Education and the Department of

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Revenue shall develop a cooperative agreement to assist each

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other in implementing the tax credits created under this section.

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     Section 2.  Subsection (8) of section 220.02, Florida

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Statutes, is amended to read:

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     220.02  Legislative intent.--

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     (8)  It is the intent of the Legislature that credits

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against either the corporate income tax or the franchise tax be

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applied in the following order: those enumerated in s. 631.828,

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those enumerated in s. 220.191, those enumerated in s. 220.181,

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those enumerated in s. 220.183, those enumerated in s. 220.182,

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those enumerated in s. 220.1895, those enumerated in s. 221.02,

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those enumerated in s. 220.184, those enumerated in s. 220.186,

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those enumerated in s. 220.1845, those enumerated in s. 220.19,

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those enumerated in s. 220.185, those enumerated in s. 220.187,

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those enumerated in s. 220.192, and those enumerated in s.

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220.193, and those enumerated in s. 1009.893.

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     Section 3.  Paragraph (a) of subsection (1) of section

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220.13, Florida Statutes, is amended to read:

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     220.13  "Adjusted federal income" defined.--

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     (1)  The term "adjusted federal income" means an amount

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equal to the taxpayer's taxable income as defined in subsection

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(2), or such taxable income of more than one taxpayer as provided

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in s. 220.131, for the taxable year, adjusted as follows:

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     (a)  Additions.--There shall be added to such taxable

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income:

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     1.  The amount of any tax upon or measured by income,

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excluding taxes based on gross receipts or revenues, paid or

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accrued as a liability to the District of Columbia or any state

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of the United States which is deductible from gross income in the

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computation of taxable income for the taxable year.

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     2.  The amount of interest which is excluded from taxable

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income under s. 103(a) of the Internal Revenue Code or any other

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federal law, less the associated expenses disallowed in the

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computation of taxable income under s. 265 of the Internal

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Revenue Code or any other law, excluding 60 percent of any

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amounts included in alternative minimum taxable income, as

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defined in s. 55(b)(2) of the Internal Revenue Code, if the

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taxpayer pays tax under s. 220.11(3).

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     3.  In the case of a regulated investment company or real

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estate investment trust, an amount equal to the excess of the net

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long-term capital gain for the taxable year over the amount of

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the capital gain dividends attributable to the taxable year.

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     4.  That portion of the wages or salaries paid or incurred

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for the taxable year which is equal to the amount of the credit

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allowable for the taxable year under s. 220.181. This

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subparagraph shall expire on the date specified in s. 290.016 for

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the expiration of the Florida Enterprise Zone Act.

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     5.  That portion of the ad valorem school taxes paid or

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incurred for the taxable year which is equal to the amount of the

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credit allowable for the taxable year under s. 220.182. This

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subparagraph shall expire on the date specified in s. 290.016 for

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the expiration of the Florida Enterprise Zone Act.

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     6.  The amount of emergency excise tax paid or accrued as a

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liability to this state under chapter 221 which tax is deductible

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from gross income in the computation of taxable income for the

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taxable year.

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     7.  That portion of assessments to fund a guaranty

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association incurred for the taxable year which is equal to the

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amount of the credit allowable for the taxable year.

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     8.  In the case of a nonprofit corporation which holds a

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pari-mutuel permit and which is exempt from federal income tax as

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a farmers' cooperative, an amount equal to the excess of the

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gross income attributable to the pari-mutuel operations over the

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attributable expenses for the taxable year.

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     9.  The amount taken as a credit for the taxable year under

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s. 220.1895.

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     10.  Up to nine percent of the eligible basis of any

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designated project which is equal to the credit allowable for the

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taxable year under s. 220.185.

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     11.  The amount taken as a credit for the taxable year under

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s. 220.187.

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     12.  The amount taken as a credit for the taxable year under

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s. 220.192.

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     13.  The amount taken as a credit for the taxable year under

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s. 220.193.

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     14. The amount taken as a credit for the taxable year under

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s. 1009.893.

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     Section 4. There is appropriated from nonrecurring general

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revenue a sum not to exceed $200,000 to the Department of

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Education to pay for costs associated with administering the Sure

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Futures Foundation and the Sure Futures Postgraduate Scholarship

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Program.

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     Section 5.  This act shall take effect July 1, 2008.

CODING: Words stricken are deletions; words underlined are additions.