HB 0805 2003
1	A bill to be entitled
2	An act relating to scholarship eligibility for dependent
3	children of veterans and military personnel; amending s.
4	220.187, F.S.; making eligible the dependent children of
5	veterans, active duty military personnel, and members of
6	the Florida National Guard for certain scholarships;
7	providing tax credits to corporations funding such
8	scholarships subject to certain limitations; providing an
9	effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
12
13	Section 1. Section 220.187, Florida Statutes, is amended
14	to read:
15	220.187 Credits for contributions to nonprofit
16	scholarship-funding organizations.--
17	(1) PURPOSE.--The purpose of this section is to:
18	(a) Encourage private, voluntary contributions to
19	nonprofit scholarship-funding organizations.
20	(b) Expand educational opportunities for children of
21	families that have limited financial resources.
22	(c) Enable children in this state to achieve a greater
23	level of excellence in their education.
24	(2) DEFINITIONS.--As used in this section, the term:
25	(a) "Department" means the Department of Revenue.
26	(b) "Eligible contribution" means a monetary contribution
27	from a taxpayer, subject to the restrictions provided in this
28	section, to an eligible nonprofit scholarship-funding
29	organization. The taxpayer making the contribution may not
30	designate a specific child as the beneficiary of the
31	contribution. The taxpayer may not contribute more than $5
32	million to any single eligible nonprofit scholarship-funding
33	organization.
34	(c) "Eligible nonpublic school" means a nonpublic school
35	located in Florida that offers an education to students in any
36	grades K-12 and that meets the requirements in subsection (5).
37	(d) "Eligible nonprofit scholarship-funding organization"
38	means a charitable organization that is exempt from federal
39	income tax pursuant to s. 501(c)(3) of the Internal Revenue Code
40	and that complies with the provisions of subsection (4).
41	(e) "Qualified student" means a dependent child of a
42	United States Armed Forces veteran, a dependent child of active
43	duty personnel in the United States military, a dependent child
44	of a member of the Florida National Guard, or astudent who
45	qualifies for free or reduced-price school lunches under the
46	National School Lunch Act and who:
47	1. Was counted as a full-time equivalent student during
48	the previous state fiscal year for purposes of state per-student
49	funding;
50	2. Received a scholarship from an eligible nonprofit
51	scholarship-funding organization during the previous school
52	year; or
53	3. Is eligible to enter kindergarten or first grade.
54	(3) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
55	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
56	(a) There is allowed a credit of 100 percent of an
57	eligible contribution against any tax due for a taxable year
58	under this chapter. However, such a credit may not exceed 75
59	percent of the tax due under this chapter for the taxable year,
60	after the application of any other allowable credits by the
61	taxpayer. However, at least 5 percent of the total statewide
62	amount authorized for the tax credit shall be reserved for
63	taxpayers who meet the definition of a small business provided
64	in s. 288.703(1) at the time of application. The credit granted
65	by this section shall be reduced by the difference between the
66	amount of federal corporate income tax taking into account the
67	credit granted by this section and the amount of federal
68	corporate income tax without application of the credit granted
69	by this section.
70	(b) The total amount of tax credit which may be granted
71	each state fiscal year under this section is $50 million.
72	(c) A taxpayer who files a Florida consolidated return as
73	a member of an affiliated group pursuant to s. 220.131(1) may be
74	allowed the credit on a consolidated return basis; however, the
75	total credit taken by the affiliated group is subject to the
76	limitation established under paragraph (a).
77	(4) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
78	ORGANIZATIONS.--
79	(a) An eligible nonprofit scholarship-funding organization
80	shall provide scholarships, from eligible contributions, to
81	qualified students for:
82	1. Tuition or textbook expenses for, or transportation to,
83	an eligible nonpublic school. At least 75 percent of the
84	scholarship funding must be used to pay tuition expenses; or
85	2. Transportation expenses to a Florida public school that
86	is located outside the district in which the student resides.
87	(b) An eligible nonprofit scholarship-funding organization
88	shall give priority to qualified students who received a
89	scholarship from an eligible nonprofit scholarship-funding
90	organization during the previous school year.
91	(c) The amount of a scholarship provided to any child for
92	any single school year by all eligible nonprofit scholarship-
93	funding organizations from eligible contributions shall not
94	exceed the following annual limits:
95	1. Three thousand five hundred dollars for a scholarship
96	awarded to a student enrolled in an eligible nonpublic school.
97	2. Five hundred dollars for a scholarship awarded to a
98	student enrolled in a Florida public school that is located
99	outside the district in which the student resides.
100	(d) The amount of an eligible contribution which may be
101	accepted by an eligible nonprofit scholarship-funding
102	organization is limited to the amount needed to provide
103	scholarships for qualified students which the organization has
104	identified and for which vacancies in eligible nonpublic schools
105	have been identified.
106	(e) An eligible nonprofit scholarship-funding organization
107	that receives an eligible contribution must spend 100 percent of
108	the eligible contribution to provide scholarships in the same
109	state fiscal year in which the contribution was received. No
110	portion of eligible contributions may be used for administrative
111	expenses. All interest accrued from contributions must be used
112	for scholarships.
113	(f) An eligible nonprofit scholarship-funding organization
114	that receives eligible contributions must provide to the Auditor
115	General an annual financial and compliance audit of its accounts
116	and records conducted by an independent certified public
117	accountant and in accordance with rules adopted by the Auditor
118	General.
119	(g) Payment of the scholarship by the eligible nonprofit
120	scholarship-funding organization shall be by individual warrant
121	or check made payable to the student's parent. If the parent
122	chooses for his or her child to attend an eligible nonpublic
123	school, the warrant or check must be mailed by the eligible
124	nonprofit scholarship-funding organization to the nonpublic
125	school of the parent's choice, and the parent shall
126	restrictively endorse the warrant or check to the nonpublic
127	school. An eligible nonprofit scholarship-funding organization
128	shall ensure that, upon receipt of a scholarship warrant or
129	check, the parent to whom the warrant or check is made
130	restrictively endorses the warrant or check to the nonpublic
131	school of the parent's choice for deposit into the account of
132	the nonpublic school.
133	(5) ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An eligible
134	nonpublic school must:
135	(a) Demonstrate fiscal soundness by being in operation for
136	one school year or provide the Department of Education with a
137	statement by a certified public accountant confirming that the
138	nonpublic school desiring to participate is insured and the
139	owner or owners have sufficient capital or credit to operate the
140	school for the upcoming year serving the number of students
141	anticipated with expected revenues from tuition and other
142	sources that may be reasonably expected. In lieu of such a
143	statement, a surety bond or letter of credit for the amount
144	equal to the scholarship funds for any quarter may be filed with
145	the department.
146	(b) Comply with the antidiscrimination provisions of 42
147	U.S.C. s. 2000d.
148	(c) Meet state and local health and safety laws and codes.
149	(d) Comply with all state laws relating to general
150	regulation of nonpublic schools.
151	(6) ADMINISTRATION; RULES.--
152	(a) If the credit granted pursuant to this section is not
153	fully used in any one year, the unused amount may not be carried
154	forward. A taxpayer may not convey, assign, or transfer the
155	credit authorized by this section to another entity unless all
156	of the assets of the taxpayer are conveyed, assigned, or
157	transferred in the same transaction.
158	(b) An application for a tax credit pursuant to this
159	section shall be submitted to the department on forms
160	established by rule of the department.
161	(c) The department and the Department of Education shall
162	develop a cooperative agreement to assist in the administration
163	of this section. The Department of Education shall be
164	responsible for annually submitting, by March 15, to the
165	department a list of eligible nonprofit scholarship-funding
166	organizations that meet the requirements of paragraph (2)(d) and
167	for monitoring eligibility of nonprofit scholarship-funding
168	organizations that meet the requirements of paragraph (2)(d),
169	eligibility of nonpublic schools that meet the requirements of
170	paragraph (2)(c), and eligibility of expenditures under this
171	section as provided in subsection (4).
172	(d) The department shall adopt rules necessary to
173	administer this section, including rules establishing
174	application forms and procedures and governing the allocation of
175	tax credits under this section on a first-come, first-served
176	basis.
177	(e) The Department of Education shall adopt rules
178	necessary to determine eligibility of nonprofit scholarship-
179	funding organizations as defined in paragraph (2)(d) and
180	according to the provisions of subsection (4) and identify
181	qualified students as defined in paragraph (2)(e).
182	(7) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
183	contributions received by an eligible nonprofit scholarship-
184	funding organization shall be deposited in a manner consistent
185	with s. 18.10(2).
186	Section 2. This act shall take effect July 1, 2003.