HB 0805, Engrossed 1 2003
1	A bill to be entitled
2	An act relating to scholarships for dependent children of
3	veterans and military personnel; creating s. 220.1875,
4	F.S.; establishing a program for contributions to
5	nonprofit scholarship-funding organizations to be used for
6	dependent children of veterans and military personnel;
7	providing for tax credits that may be granted each fiscal
8	year for such contributions; providing requirements and
9	limitations; providing an effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
12
13	Section 1. Section 220.1875, Florida Statutes, is created
14	to read:
15	220.1875 Credits for contributions to nonprofit
16	scholarship-funding organizations; scholarships for dependent
17	children of United States Armed Forces veterans, active duty and
18	reserve personnel in the United States military, or members of
19	the Florida National Guard.--
20	(1) PURPOSE.--The purpose of this section is to:
21	(a) Encourage private, voluntary contributions to
22	nonprofit scholarship-funding organizations.
23	(b) Expand educational opportunities for dependent
24	children of United States Armed Forces veterans, active duty and
25	reserve personnel in the United States military, or members of
26	the Florida National Guard.
27	(c) Enable children in this state to achieve a greater
28	level of excellence in their education.
29	(2) DEFINITIONS.--As used in this section, the term:
30	(a) "Department" means the Department of Revenue.
31	(b) "Eligible contribution" means a monetary contribution
32	from a taxpayer, subject to the restrictions provided in this
33	section, to an eligible nonprofit scholarship-funding
34	organization. The taxpayer making the contribution may not
35	designate a specific child as the beneficiary of the
36	contribution. The taxpayer may not contribute more than $5
37	million to any single eligible nonprofit scholarship-funding
38	organization.
39	(c) "Eligible nonpublic school" means a nonpublic school
40	located in Florida that offers an education to students in any
41	grades K-12 and that meets the requirements in subsection (5).
42	(d) "Eligible nonprofit scholarship-funding organization"
43	means a charitable organization that is exempt from federal
44	income tax pursuant to s. 501(c)(3) of the Internal Revenue Code
45	and that complies with the provisions of subsection (4).
46	(e) "Qualified student" means a dependent child of a
47	United States Armed Forces veteran, a dependent child of active
48	duty or reserve personnel in the United States military, a
49	dependent child of a member of the Florida National Guard, or
50	any qualified student, pursuant to s. 220.187, as further
51	provided in paragraph (4)(d).
52	(3) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
53	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
54	(a) There is allowed a credit of 100 percent of an
55	eligible contribution against any tax due for a taxable year
56	under this chapter. However, such a credit may not exceed 75
57	percent of the tax due under this chapter for the taxable year,
58	after the application of any other allowable credits by the
59	taxpayer. The credit granted by this section shall be reduced
60	by the difference between the amount of federal corporate income
61	tax taking into account the credit granted by this section and
62	the amount of federal corporate income tax without application
63	of the credit granted by this section.
64	(b) The total amount of tax credit which may be granted
65	each state fiscal year under this section is $10 million.
66	(c) A taxpayer who files a Florida consolidated return as
67	a member of an affiliated group pursuant to s. 220.131(1) may be
68	allowed the credit on a consolidated return basis; however, the
69	total credit taken by the affiliated group is subject to the
70	limitation established under paragraph (a).
71	(4) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
72	ORGANIZATIONS.--
73	(a) An eligible nonprofit scholarship-funding organization
74	shall provide scholarships, from eligible contributions, to
75	qualified students for:
76	1. Tuition or textbook expenses for, or transportation to,
77	an eligible nonpublic school. At least 75 percent of the
78	scholarship funding must be used to pay tuition expenses; or
79	2. Transportation expenses to a Florida public school that
80	is located outside the district in which the student resides.
81	(b) An eligible nonprofit scholarship-funding organization
82	shall give priority to qualified students who received a
83	scholarship from an eligible nonprofit scholarship-funding
84	organization during the previous school year.
85	(c) The amount of a scholarship provided to any child for
86	any single school year by all eligible nonprofit scholarship-
87	funding organizations from eligible contributions shall not
88	exceed the following annual limits:
89	1. Three thousand five hundred dollars for a scholarship
90	awarded to a student enrolled in an eligible nonpublic school.
91	2. Five hundred dollars for a scholarship awarded to a
92	student enrolled in a Florida public school that is located
93	outside the district in which the student resides.
94	(d) An eligible nonprofit scholarship-funding organization
95	that receives an eligible contribution must spend 100 percent of
96	the eligible contribution to provide scholarships in the same
97	state fiscal year in which the contribution was received. An
98	eligible nonprofit scholarship-funding organization may use
99	eligible contributions to provide scholarships to qualified
100	students, pursuant to s. 220.187, after it has served qualified
101	dependent children of United States Armed Forces veterans,
102	dependent children of active duty or reserve personnel in the
103	United States military, and dependent children of members of the
104	Florida National Guard. No portion of eligible contributions may
105	be used for administrative expenses. All interest accrued from
106	contributions must be used for scholarships.
107	(e) An eligible nonprofit scholarship-funding organization
108	that receives eligible contributions must provide to the Auditor
109	General an annual financial and compliance audit of its accounts
110	and records conducted by an independent certified public
111	accountant and in accordance with rules adopted by the Auditor
112	General.
113	(f) Payment of the scholarship by the eligible nonprofit
114	scholarship-funding organization shall be by individual warrant
115	or check made payable to the student's parent. If the parent
116	chooses for his or her child to attend an eligible nonpublic
117	school, the warrant or check must be mailed by the eligible
118	nonprofit scholarship-funding organization to the nonpublic
119	school of the parent's choice, and the parent shall
120	restrictively endorse the warrant or check to the nonpublic
121	school. An eligible nonprofit scholarship-funding organization
122	shall ensure that, upon receipt of a scholarship warrant or
123	check, the parent to whom the warrant or check is made
124	restrictively endorses the warrant or check to the nonpublic
125	school of the parent's choice for deposit into the account of
126	the nonpublic school.
127	(5) ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An eligible
128	nonpublic school must:
129	(a) Demonstrate fiscal soundness by being in operation for
130	one school year or provide the Department of Education with a
131	statement by a certified public accountant confirming that the
132	nonpublic school desiring to participate is insured and the
133	owner or owners have sufficient capital or credit to operate the
134	school for the upcoming year serving the number of students
135	anticipated with expected revenues from tuition and other
136	sources that may be reasonably expected. In lieu of such a
137	statement, a surety bond or letter of credit for the amount
138	equal to the scholarship funds for any quarter may be filed with
139	the department.
140	(b) Comply with the antidiscrimination provisions of 42
141	U.S.C. s. 2000d.
142	(c) Meet state and local health and safety laws and codes.
143	(d) Comply with all state laws relating to general
144	regulation of nonpublic schools.
145	(6) ADMINISTRATION; RULES.--
146	(a) If the credit granted pursuant to this section is not
147	fully used in any one year, the unused amount may not be carried
148	forward. A taxpayer may not convey, assign, or transfer the
149	credit authorized by this section to another entity unless all
150	of the assets of the taxpayer are conveyed, assigned, or
151	transferred in the same transaction.
152	(b) An application for a tax credit pursuant to this
153	section shall be submitted to the department on forms
154	established by rule of the department.
155	(c) The department and the Department of Education shall
156	develop a cooperative agreement to assist in the administration
157	of this section. The Department of Education shall be
158	responsible for annually submitting, by March 15, to the
159	department a list of eligible nonprofit scholarship-funding
160	organizations that meet the requirements of paragraph (2)(d) and
161	for monitoring eligibility of nonprofit scholarship-funding
162	organizations that meet the requirements of paragraph (2)(d),
163	eligibility of nonpublic schools that meet the requirements of
164	paragraph (2)(c), and eligibility of expenditures under this
165	section as provided in subsection (4).
166	(d) The department shall adopt rules necessary to
167	administer this section, including rules establishing
168	application forms and procedures and governing the allocation of
169	tax credits under this section on a first-come, first-served
170	basis.
171	(e) The Department of Education shall adopt rules
172	necessary to determine eligibility of nonprofit scholarship-
173	funding organizations as defined in paragraph (2)(d) and
174	according to the provisions of subsection (4) and identify
175	qualified students as defined in paragraph (2)(e).
176	(7) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
177	contributions received by an eligible nonprofit scholarship-
178	funding organization shall be deposited in a manner consistent
179	with s. 18.10(2).
180	Section 2. This act shall take effect upon becoming a law.
181