HB 0313

CS

CHAMBER ACTION

1	The Committee on Education K-20 recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to scholarship program accountability;
7	amending s. 220.187, F.S., relating to credits for
8	contributions to nonprofit scholarship-funding
9	organizations; removing a cap on contributions to a single
10	eligible nonprofit scholarship-funding organization;
11	revising definition of the terms "eligible nonprofit
12	scholarship-funding organization" and "qualified student";
13	defining the term "owner or operator"; reducing small
14	business credit reservation; providing for rescindment of
15	tax credit allocation; authorizing scholarships for
16	transportation expenses to lab schools; providing
17	restrictions on receipt of a scholarship; providing for
18	obligation of eligible contributions; requiring a separate
19	account for scholarship funds; authorizing transfer of
20	funds between scholarship-funding organizations;
21	specifying audit requirements; requiring attendance
22	verification prior to scholarship payment; requiring
23	quarterly scholarship payments; requiring quarterly
24	reports; requiring income verification; requiring
25	fingerprinting and criminal background checks; providing
26	restrictions on scholarship-funding organization ownership
27	or operation; providing for reporting of noncompliant
28	private schools; providing for equal opportunity;
29	providing for private school availability; providing for a
30	line of credit; providing for parent and student
31	obligations; prohibiting power of attorney for endorsing
32	scholarship checks; revising fiscal soundness requirements
33	for private schools; providing for additional private
34	school obligations, including compliance with specified
35	laws, employment of qualified teachers, and provision of
36	student testing; requiring fingerprinting and criminal
37	background checks; prohibiting certain types of
38	educational programs; providing Department of Education
39	and Commissioner of Education obligations and
40	responsibilities, including verification of eligibility of
41	program participants, investigation of violations,
42	analysis of student performance data, and authority to
43	suspend or prohibit participation in the scholarship
44	program; requiring State Board of Education rules;
45	providing for Department of Financial Services
46	obligations; amending s. 1002.39, F.S., relating to the
47	John M. McKay Scholarships for Students with Disabilities
48	Program; revising definition of the term "students with
49	disabilities"; restricting eligibility to receive a John
50	M. McKay Scholarship; providing Department of Education
51	obligations to establish an information hotline,
52	investigate private school violations, and retain records;
53	revising requirements for private school fiscal soundness;
54	revising eligibility requirements for private schools,
55	including compliance with specified laws and rules and
56	maintenance of a physical location in the state, with an
57	exception; requiring fingerprinting and criminal
58	background checks; prohibiting certain types of
59	educational programs; prohibiting power of attorney for
60	endorsing scholarship checks; revising provisions relating
61	to scholarship payment; providing for Department of
62	Financial Services obligations; providing Commissioner of
63	Education authority to suspend or prohibit program
64	participation; providing an effective date.
65
66	Be It Enacted by the Legislature of the State of Florida:
67
68	Section 1.  Section 220.187, Florida Statutes, is amended
69	to read:
70	220.187  Credits for contributions to nonprofit
71	scholarship-funding organizations.--
72	(1)  PURPOSE.--The purpose of this section is to:
73	(a)  Encourage private, voluntary contributions to
74	nonprofit scholarship-funding organizations.
75	(b)  Expand educational opportunities for children of
76	families that have limited financial resources.
77	(c)  Enable children in this state to achieve a greater
78	level of excellence in their education.
79	(2)  DEFINITIONS.--As used in this section, the term:
80	(a)  "Department" means the Department of Revenue.
81	(b)  "Eligible contribution" means a monetary contribution
82	from a taxpayer, subject to the restrictions provided in this
83	section, to an eligible nonprofit scholarship-funding
84	organization. The taxpayer making the contribution may not
85	designate a specific child as the beneficiary of the
86	contribution. The taxpayer may not contribute more than $5
87	million to any single eligible nonprofit scholarship-funding
88	organization.
89	(c)(d)  "Eligible nonprofit scholarship-funding
90	organization" means a charitable organization that is exempt
91	from federal income tax pursuant to s. 501(c)(3) of the Internal
92	Revenue Code, that is a Florida entity formed under chapter 607,
93	chapter 608, or chapter 617 and whose principal office is
94	located in the state, and that complies with the provisions of
95	subsection (4).
96	(d)(c)  "Eligible private nonpublic school" means a private
97	nonpublic school located in Florida that offers an education to
98	students in any grades K-12 and that meets the requirements in
99	subsection (6)(5).
100	(e)  "Owner or operator" includes:
101	1.  An owner, president, officer, or director of an
102	eligible nonprofit scholarship-funding organization or a person
103	with equivalent decisionmaking authority over an eligible
104	nonprofit scholarship-funding organization.
105	2.  An owner, operator, superintendent, or principal of an
106	eligible private school or a person with equivalent
107	decisionmaking authority over an eligible private school.
108	(f)(e)  "Qualified student" means a student who qualifies
109	for free or reduced-price school lunches under the National
110	School Lunch Act and who:
111	1.  Was counted as a full-time equivalent student during
112	the previous state fiscal year for purposes of state per-student
113	funding;
114	2.  Received a scholarship from an eligible nonprofit
115	scholarship-funding organization during the previous school
116	year; or
117	3.  Is eligible to enter kindergarten or first grade.
118
119	However, for purposes of continuity of educational choice, a
120	student who is a qualified student shall remain a qualified
121	student notwithstanding a change in the family's economic status
122	up to 200 percent of the federal poverty level.
123	(3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
124	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
125	(a)  There is allowed a credit of 100 percent of an
126	eligible contribution against any tax due for a taxable year
127	under this chapter. However, such a credit may not exceed 75
128	percent of the tax due under this chapter for the taxable year,
129	after the application of any other allowable credits by the
130	taxpayer. However, at least 5 percent of the total statewide
131	amount authorized for the tax credit shall be reserved for
132	taxpayers who meet the definition of a small business provided
133	in s. 288.703(1) at the time of application. The credit granted
134	by this section shall be reduced by the difference between the
135	amount of federal corporate income tax taking into account the
136	credit granted by this section and the amount of federal
137	corporate income tax without application of the credit granted
138	by this section.
139	(b)  The total amount of tax credits and carryforward of
140	tax credits which may be granted each state fiscal year under
141	this section is $88 million. However, at least 1 percent of the
142	total statewide amount authorized for tax credits shall be
143	reserved for taxpayers who meet the definition of a small
144	business provided in s. 288.703(1) at the time of application.
145	(c)  A taxpayer who files a Florida consolidated return as
146	a member of an affiliated group pursuant to s. 220.131(1) may be
147	allowed the credit on a consolidated return basis; however, the
148	total credit taken by the affiliated group is subject to the
149	limitation established under paragraph (a).
150	(d)  A taxpayer may rescind all or part of its allocated
151	tax credit under this section. The amount of the rescindment
152	shall become available for purposes of the cap for that state
153	fiscal year under this section to an eligible taxpayer as
154	approved by the department if the taxpayer receives notice from
155	the department that the rescindment has been accepted by the
156	department, the taxpayer has not previously rescinded any or all
157	of its tax credit allocation under this section more than once
158	in the previous 3 tax years, and the taxpayer has not made a
159	contribution pursuant to its approved application for tax credit
160	under this section. Any amount rescinded under this paragraph
161	shall become available to an eligible taxpayer on a first-come,
162	first-served basis based on tax credit applications received
163	after the date the rescindment is accepted by the department.
164	(4)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
165	ORGANIZATIONS.--An eligible nonprofit scholarship-funding
166	organization participating in the scholarship program
167	established in this section shall have the following
168	obligations:
169	(a)  An eligible nonprofit scholarship-funding organization
170	shall provide corporate income tax credit scholarships, from
171	eligible contributions, to qualified students for:
172	1.  Tuition or textbook expenses for, or transportation to,
173	an eligible private nonpublic school. At least 75 percent of
174	each the scholarship funding must be used to pay tuition
175	expenses; or
176	2.  Transportation expenses to a Florida public school that
177	is located outside the district in which the student resides or
178	to a lab school as defined in s. 1002.32.
179	(b)  An eligible nonprofit scholarship-funding organization
180	shall give priority to qualified students who received a
181	scholarship from an eligible nonprofit scholarship-funding
182	organization during the previous school year.
183	(c)  An eligible nonprofit scholarship-funding organization
184	shall not provide a scholarship to a student who is receiving an
185	opportunity scholarship pursuant to s. 1002.38 or a John M.
186	McKay Scholarship pursuant to s. 1002.39. In addition, an
187	eligible nonprofit scholarship-funding organization shall not
188	provide a scholarship to a student who is receiving a corporate
189	income tax credit scholarship from another eligible nonprofit
190	scholarship-funding organization.
191	(d)(c)  The amount of a scholarship provided to any child
192	for any single school year by an all eligible nonprofit
193	scholarship-funding organization organizations from eligible
194	contributions shall not exceed the following annual limits:
195	1.  Three thousand five hundred dollars for a scholarship
196	awarded to a student enrolled in an eligible private nonpublic
197	school.
198	2.  Five hundred dollars for a scholarship awarded to a
199	student enrolled in a Florida public school that is located
200	outside the district in which the student resides or in a lab
201	school as defined in s. 1002.32.
202	(e)(d)  The amount of an eligible contribution which may be
203	accepted by an eligible nonprofit scholarship-funding
204	organization is limited to the amount needed to provide
205	scholarships for qualified students which the organization has
206	identified and for which vacancies in eligible private nonpublic
207	schools have been identified.
208	(f)(e)  An eligible nonprofit scholarship-funding
209	organization that receives an eligible contribution must
210	obligate spend 100 percent of the eligible contribution to
211	provide scholarships in the same state fiscal year in which the
212	contribution was received. No portion of eligible contributions
213	may be used for administrative expenses. All interest accrued
214	from contributions must be used for scholarships.
215	(g)  An eligible nonprofit scholarship-funding organization
216	must maintain separate accounts for scholarship funds and
217	operating funds.
218	(h)  An eligible nonprofit scholarship-funding organization
219	may transfer funds to another eligible nonprofit scholarship-
220	funding organization when additional funds are required to meet
221	scholarship demand. The scholarship-funding organization
222	transferring funds must request approval for the transfer from
223	the Department of Education and provide documentation to support
224	the transfer, including a listing of the scholarships to be
225	funded from the transfer. The Department of Education shall
226	verify the listing of students to receive scholarships from the
227	transfer. No funds may be transferred unless matching eligible
228	scholarship recipients can be identified by the scholarship-
229	funding organization receiving the transfer.
230	(i)(f)  An eligible nonprofit scholarship-funding
231	organization that receives eligible contributions must provide
232	to the Auditor General and the Department of Education an annual
233	financial and compliance audit of its accounts and records
234	conducted by an independent certified public accountant and in
235	accordance with rules adopted by the Auditor General. The audit
236	must be conducted in compliance with generally accepted auditing
237	standards and must include a report on financial statements
238	presented in accordance with Generally Accepted Accounting
239	Principles set forth by the American Institute of Certified
240	Public Accountants for not-for-profit organizations and a
241	determination of compliance with the statutory eligibility and
242	expenditure requirements set forth in this section. Audits must
243	be provided to the Auditor General and the Department of
244	Education within 120 days after completion of the nonprofit
245	scholarship-funding organization's fiscal year.
246	(j)(g)  An eligible nonprofit scholarship-funding
247	organization shall obtain verification from the private school
248	of a student's continued attendance at the school prior to each
249	scholarship payment. Payment of the scholarship shall be made by
250	the eligible nonprofit scholarship-funding organization no less
251	frequently than on a quarterly basis. Payment of the scholarship
252	by the eligible nonprofit scholarship-funding organization shall
253	be by individual warrant or check made payable to the student's
254	parent. If the parent chooses for his or her child to attend an
255	eligible private nonpublic school, the warrant or check must be
256	mailed by the eligible nonprofit scholarship-funding
257	organization to the private nonpublic school of the parent's
258	choice, and the parent shall restrictively endorse the warrant
259	or check to the private nonpublic school. An eligible nonprofit
260	scholarship-funding organization shall ensure that, upon receipt
261	of a scholarship warrant or check, the parent to whom the
262	warrant or check is made restrictively endorses the warrant or
263	check to the private nonpublic school of the parent's choice for
264	deposit into the account of the private nonpublic school.
265	(k)  An eligible nonprofit scholarship-funding organization
266	must prepare and submit quarterly reports to the Department of
267	Education pursuant to subsection (7). In addition, an eligible
268	nonprofit scholarship-funding organization must submit in a
269	timely manner any information requested by the Department of
270	Education relating to the scholarship program.
271	(l)  An eligible nonprofit scholarship-funding organization
272	must verify the income of all applicants participating in the
273	scholarship program each year with independent income
274	documentation.
275	(m)  An owner or operator of an eligible nonprofit
276	scholarship-funding organization must, within 5 days after
277	assuming ownership or decisionmaking authority, file with the
278	Department of Law Enforcement a complete set of fingerprints for
279	state processing for a criminal background check. The costs of
280	fingerprinting and the background check shall not be borne by
281	the state. The results of the criminal background check shall be
282	forwarded to the owner or operator and to the Department of
283	Education.
284	(n)  A nonprofit scholarship-funding organization whose
285	owner or operator in the last 7 years has filed for personal
286	bankruptcy or corporate bankruptcy in a corporation in which he
287	or she owned more than 20 percent of the corporation shall not
288	be eligible to provide scholarships under this section.
289	(o)  An owner or operator of an eligible nonprofit
290	scholarship-funding organization is prohibited from owning or
291	operating an eligible private school that is participating in
292	the scholarship program.
293	(p)  An eligible nonprofit scholarship-funding organization
294	shall report to the Department of Education any private school
295	that is not in compliance with the requirements of the
296	scholarship program. The eligible nonprofit scholarship-funding
297	organization shall not provide additional scholarship funds to a
298	parent for a student to attend the private school until a
299	determination is made by the Commissioner of Education that the
300	school is in compliance with the requirements of the scholarship
301	program.
302	(q)  An eligible nonprofit scholarship-funding organization
303	shall not discriminate in the provision of scholarships to a
304	qualified student based on the student's race, color, national
305	origin, sex, or religion.
306	(r)  An eligible nonprofit scholarship-funding organization
307	shall allow a qualified student to attend any eligible private
308	school and shall allow a parent to transfer a scholarship during
309	a school year to any other eligible private school of the
310	parent's choice.
311	(s)  An eligible nonprofit scholarship-funding organization
312	shall not target scholarships to a particular private school or
313	provide scholarships to children of employees of the nonprofit
314	scholarship-funding organization.
315	(t)  An eligible nonprofit scholarship-funding organization
316	may obtain a secured line of credit to fund scholarship payments
317	based on estimated contributions to be received within a 6-
318	month period. These funds may only be used to provide
319	scholarship payments. Interest and fees related to the line of
320	credit shall be paid from the scholarship-funding organization's
321	operating budget and not from contributions or loan proceeds.
322	(5)  PARENT OBLIGATIONS OF PARENTS AND STUDENTS.--
323	(a)  As a condition for scholarship payment pursuant to
324	paragraph (4)(j)(g), if the parent chooses for his or her child
325	to attend an eligible private nonpublic school, the parent must
326	inform the child's school district within 15 days after such
327	decision.
328	(b)  A student is not eligible to receive a corporate
329	income tax credit scholarship if he or she is receiving an
330	opportunity scholarship pursuant to s. 1002.38 or a John M.
331	McKay Scholarship pursuant to s. 1002.39. A student is not
332	eligible to receive a scholarship from more than one eligible
333	nonprofit scholarship-funding organization. A student is not
334	eligible to receive a corporate income tax credit scholarship if
335	the family's economic status exceeds 200 percent of the federal
336	poverty level.
337	(c)  Upon receipt of a scholarship warrant or check from
338	the eligible nonprofit scholarship-funding organization, the
339	parent to whom the warrant or check is made must restrictively
340	endorse the warrant or check to the private school for deposit
341	into the account of the private school. A private school may not
342	act as attorney in fact for parents of a scholarship student
343	under the authority of a power of attorney executed by such
344	parents or under any other authority allowing endorsement of
345	scholarship warrants on behalf of parents. If a parent refuses
346	to restrictively endorse a warrant to which a private school is
347	entitled, that student's scholarship shall be forfeited
348	immediately.
349	(d)  Any student participating in the scholarship program
350	must remain in attendance throughout the school year unless
351	excused by the school for illness or other good cause and must
352	comply fully with the school's code of conduct.
353	(e)  The parent of a student participating in the
354	scholarship program must comply fully with the private school's
355	parental involvement requirements unless excused by the school
356	for illness or other good cause.
357	(f)  The parent of a student participating in the
358	scholarship program must ensure that the student participates in
359	the nationally norm-referenced testing required by this section.
360	Students with disabilities for whom standardized testing is not
361	appropriate are exempt from this requirement.
362	(g)  A participant in the scholarship program who fails to
363	comply with this subsection forfeits the scholarship.
364	(6)  ELIGIBLE PRIVATE NONPUBLIC SCHOOL OBLIGATIONS.--An
365	eligible private nonpublic school must:
366	(a)  Demonstrate fiscal soundness by being in operation for
367	3 school years or obtain one school year or provide the
368	Department of Education with a statement by a certified public
369	accountant confirming that the nonpublic school desiring to
370	participate is insured and the owner or owners have sufficient
371	capital or credit to operate the school for the upcoming year
372	serving the number of students anticipated with expected
373	revenues from tuition and other sources that may be reasonably
374	expected. In lieu of such a statement, a surety bond or letter
375	of credit for the amount equal to the scholarship funds for any
376	quarter to may be filed with the Department of Education. The
377	surety bond or letter of credit shall serve to secure
378	expenditures of scholarship funds should such funds be found to
379	have been used for unlawful purposes. However, if during the
380	school year a private school exhibits financial difficulty or is
381	otherwise not in compliance with this section, the Commissioner
382	of Education may impose additional requirements on the private
383	school, which may include additional security bonding.
384	(b)  Notify the Department of Education of its intent to
385	participate in the scholarship program. The notice must specify
386	the grade levels that the private school has available for
387	students participating in the scholarship program.
388	(c)(b)  Comply with the antidiscrimination provisions of 42
389	U.S.C. s. 2000d.
390	(d)(c)  Meet state and local health and safety laws and
391	codes, including, but not limited to, laws pertaining to:
392	1.  Fire safety.
393	2.  Building codes.
394	(e)(d)  Comply with all state laws relating to general
395	regulation of private nonpublic schools, including, but not
396	limited to, laws pertaining to:
397	1.  Annual private school survey required in s. 1002.42(2).
398	2.  Retention of records required in s. 1002.42(3).
399	3.  Attendance records and reports required in s.
400	1003.23(2).
401	4.  School-entry health examinations and immunizations
402	required in s. 1003.22.
403	5.  Attendance requirements prescribed in ss. 1003.01(13)
404	and 1003.21(1).
405	(f)  Employ or contract with teachers who hold
406	baccalaureate or higher degrees, have at least 3 years of
407	teaching experience in public or private schools, or have
408	special skills, knowledge, or expertise that qualifies them to
409	provide instruction in subjects taught.
410	(g)  Annually administer or make provision for students
411	participating in the scholarship program to take one of the
412	nationally norm-referenced tests identified by the Department of
413	Education. Students with disabilities for whom standardized
414	testing is not appropriate are exempt from this requirement. A
415	participating private school must report a student's scores to
416	the parent and to the independent private research organization
417	selected by the Department of Education pursuant to subsection
418	(7).
419	(h)  Within 60 days after employment, for any private
420	school owner-operator or private school manager, file with the
421	Department of Law Enforcement a complete set of fingerprints for
422	state processing for a criminal background check. The costs of
423	fingerprinting and the background check shall not be borne by
424	the state. The results of a criminal background check shall be
425	reported to the Department of Education. The owner or operator
426	of the private school shall immediately report to the Department
427	of Education any private school owner-operator or private school
428	manager who has been convicted of a crime that bears upon the
429	individual's fitness to have responsibility for the safety and
430	well-being of children. Employment of such an individual shall
431	cause a private school to be ineligible for participation in the
432	scholarship program. An individual holding a valid Florida
433	teaching certificate who has been fingerprinted pursuant to s.
434	1012.32 shall not be required to comply with the provisions of
435	this paragraph.
436	(i)  Annually comply with the requirements of the
437	Department of Education to complete a sworn compliance form
438	certifying compliance with state laws pursuant to subsection
439	(7).
440	(j)  Notify the Department of Education and the eligible
441	nonprofit scholarship-funding organization if any participating
442	student is receiving a warrant or check from more than one
443	eligible nonprofit scholarship-funding organization.
444	(k)  Comply with all applicable state agency rules relating
445	to private schools.
446	(l)  Not operate as a home education program as defined in
447	ss. 1002.01 and 1002.41, a correspondence course program, or a
448	private tutoring program as described in s. 1002.43.
449
450	The inability of a private school to meet the requirements of
451	this subsection shall constitute a basis for the ineligibility
452	of the private school to participate in the scholarship program
453	as determined by the Department of Education.
454	(7)  DEPARTMENT OF EDUCATION, COMMISSIONER OF EDUCATION,
455	AND STATE BOARD OF EDUCATION OBLIGATIONS; RESPONSIBILITIES.--
456	(a)  The Department of Education shall:
457	1.  Annually submit to the Department of Revenue, by March
458	15, a list of eligible nonprofit scholarship-funding
459	organizations that meet the requirements of paragraph (2)(c).
460	2.  Verify the eligibility of nonprofit scholarship-funding
461	organizations that meet the requirements of paragraph (2)(c).
462	3.  Verify the eligibility of private schools that meet the
463	requirements of paragraph (2)(d).
464	4.  Verify the eligibility of expenditures as provided in
465	subsection (4).
466	5.  Establish a toll-free hotline that provides parents,
467	private schools, and nonprofit scholarship-funding organizations
468	with information on participation in the scholarship program.
469	6.  Establish a process by which individuals may notify the
470	Department of Education of any violation by a private school or
471	nonprofit scholarship-funding organization of state laws
472	relating to scholarship program participation. The department
473	shall conduct an investigation of any written complaint of a
474	violation of this section if the complaint is signed by the
475	complainant and is legally sufficient. A complaint is legally
476	sufficient if it contains ultimate facts that show that a
477	violation of this section or any rule adopted by the State Board
478	of Education or other state agency has occurred. In order to
479	determine legal sufficiency, the Department of Education may
480	require supporting information or documentation from the
481	complainant.
482	7.  Require annual completion of a sworn compliance form by
483	participating private schools certifying compliance with state
484	laws and retain such records.
485	8.  Identify all nationally norm-referenced tests that are
486	comparable to the norm-referenced test portions of the Florida
487	Comprehensive Assessment Test (FCAT).
488	9.  Select an independent private research organization to
489	which participating private schools must report the scores of
490	participating students on the nationally norm-referenced tests
491	administered by the private school. The independent private
492	research organization must annually report to the Department of
493	Education on the year-to-year improvements of the participating
494	students. The independent private research organization must
495	analyze and report student performance data in a manner that
496	protects the rights of students and parents as mandated in 20
497	U.S.C. s. 1232g and must not disaggregate data to a level that
498	will disclose the academic level of individuals or of individual
499	schools. To the extent possible, the independent private
500	research organization must accumulate historical performance
501	data on students from the Department of Education and private
502	schools to describe baseline performance and to conduct
503	longitudinal studies. To minimize costs and reduce time required
504	for third-party analysis and evaluation, the Department of
505	Education shall conduct analyses of matched students from public
506	school assessment data and calculate control group learning
507	gains using an agreed upon methodology outlined in the contract
508	with the third-party evaluator. The sharing of student data must
509	be in accordance with the Family Educational Rights and Privacy
510	Act requirements and shall be for the sole purpose of conducting
511	the evaluation. All parties must preserve the confidentiality of
512	such information.
513	10.  Provide a private school profile on-line for those
514	private schools participating in the scholarship program.
515	11.  Notify an eligible nonprofit scholarship-funding
516	organization of any of the organization's identified students
517	who are receiving an opportunity scholarship pursuant to s.
518	1002.38 or a John M. McKay Scholarship pursuant to s. 1002.39.
519	12.  Notify an eligible nonprofit scholarship-funding
520	organization of any of the organization's identified students
521	who are receiving a corporate income tax credit scholarship from
522	another eligible nonprofit scholarship-funding organization.
523	13.  Require quarterly reports by an eligible nonprofit
524	scholarship-funding organization regarding the number of
525	students participating in the scholarship program, the private
526	schools at which the students are enrolled, and other
527	information deemed necessary by the Department of Education.
528	14.  Regularly cross-check the list of participating
529	scholarship students with the public school enrollment lists to
530	avoid duplication.
531	(b)  The Commissioner of Education is authorized to suspend
532	or prohibit an eligible nonprofit scholarship-funding
533	organization from participation in the scholarship program and
534	to take other action necessary to ensure compliance with the
535	provisions of this section.
536	(c)  The State Board of Education shall adopt rules
537	pursuant to ss. 120.536(1) and 120.54 to implement the
538	provisions of this subsection, including rules to determine the
539	eligibility of nonprofit scholarship-funding organizations and
540	to identify qualified students.
541	(8)(7)  ADMINISTRATION; RULES.--
542	(a)  If the credit granted pursuant to this section is not
543	fully used in any one year because of insufficient tax liability
544	on the part of the corporation, the unused amount may be carried
545	forward for a period not to exceed 3 years; however, any
546	taxpayer that seeks to carry forward an unused amount of tax
547	credit must submit an application for allocation of tax credits
548	or carryforward credits as required in paragraph (d) in the year
549	that the taxpayer intends to use the carryforward. The total
550	amount of tax credits and carryforward of tax credits granted
551	each state fiscal year under this section is $88 million. This
552	carryforward applies to all approved contributions made after
553	January 1, 2002. A taxpayer may not convey, assign, or transfer
554	the credit authorized by this section to another entity unless
555	all of the assets of the taxpayer are conveyed, assigned, or
556	transferred in the same transaction.
557	(b)  An application for a tax credit pursuant to this
558	section shall be submitted to the department on forms
559	established by rule of the department.
560	(c)  The department and the Department of Education shall
561	develop a cooperative agreement to assist in the administration
562	of this section. The Department of Education shall be
563	responsible for annually submitting, by March 15, to the
564	department a list of eligible nonprofit scholarship-funding
565	organizations that meet the requirements of paragraph (2)(d) and
566	for monitoring eligibility of nonprofit scholarship-funding
567	organizations that meet the requirements of paragraph (2)(d),
568	eligibility of nonpublic schools that meet the requirements of
569	paragraph (2)(c), and eligibility of expenditures under this
570	section as provided in subsection (4).
571	(d)  The department shall adopt rules necessary to
572	administer this section, including rules establishing
573	application forms and procedures and governing the allocation of
574	tax credits and carryforward credits under this section on a
575	first-come, first-served basis.
576	(e)  Subsequent to each scholarship payment, the Department
577	of Financial Services shall randomly review endorsed warrants to
578	confirm compliance with endorsement requirements. The Department
579	of Education shall adopt rules necessary to determine
580	eligibility of nonprofit scholarship-funding organizations as
581	defined in paragraph (2)(d) and according to the provisions of
582	subsection (4) and identify qualified students as defined in
583	paragraph (2)(e).
584	(9)(8)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
585	contributions received by an eligible nonprofit scholarship-
586	funding organization shall be deposited in a manner consistent
587	with s. 17.57(2).
588	Section 2.  Subsections (1), (2), and (4), paragraph (f) of
589	subsection (5), and paragraph (f) of subsection (6) of section
590	1002.39, Florida Statutes, are amended, paragraphs (g) through
591	(j) are added to subsection (3), paragraph (g) is added to
592	subsection (6), subsection (8) is renumbered as subsection (9),
593	and a new subsection (8) is added to said section, to read:
594	1002.39  The John M. McKay Scholarships for Students with
595	Disabilities Program.--There is established a program that is
596	separate and distinct from the Opportunity Scholarship Program
597	and is named the John M. McKay Scholarships for Students with
598	Disabilities Program, pursuant to this section.
599	(1)  THE JOHN M. MCKAY SCHOLARSHIPS FOR STUDENTS WITH
600	DISABILITIES PROGRAM.--The John M. McKay Scholarships for
601	Students with Disabilities Program is established to provide the
602	option to attend a public school other than the one to which
603	assigned, or to provide a scholarship to a private school of
604	choice, for students with disabilities for whom an individual
605	education plan has been written in accordance with rules of the
606	State Board of Education.  Students with disabilities include K-
607	12 students who are documented as having mental retardation; a
608	mentally handicapped, speech or and language impairment; a
609	impaired, deaf or hard of hearing impairment, including
610	deafness; a visual impairment, including blindness; a, visually
611	impaired, dual sensory impairment; a physical impairment; a
612	serious emotional disturbance, including an emotional handicap;
613	a impaired, physically impaired, emotionally handicapped,
614	specific learning disability, including, but not limited to,
615	dyslexia, dyscalculia, or developmental aphasia; a traumatic
616	brain injury; disabled, hospitalized or homebound, or autism
617	autistic.
618	(2)  SCHOLARSHIP ELIGIBILITY.--The parent of a public
619	school student with a disability who is dissatisfied with the
620	student's progress may request and receive from the state a John
621	M. McKay Scholarship for the child to enroll in and attend a
622	private school in accordance with this section if:
623	(a)  By assigned school attendance area or by special
624	assignment, the student has spent the prior school year in
625	attendance at a Florida public school. Prior school year in
626	attendance means that the student was enrolled and reported by a
627	school district for funding during the preceding October and
628	February Florida Education Finance Program surveys in
629	kindergarten through grade 12.
630	(b)  The parent has obtained acceptance for admission of
631	the student to a private school that is eligible for the program
632	under subsection (4) and has notified the school district of the
633	request for a scholarship at least 60 days prior to the date of
634	the first scholarship payment. The parental notification must be
635	through a communication directly to the district or through the
636	Department of Education to the district in a manner that creates
637	a written or electronic record of the notification and the date
638	of receipt of the notification.
639
640	This section does not apply to A student is not eligible to
641	receive a John M. McKay Scholarship if he or she receives an
642	opportunity scholarship or a corporate tax credit scholarship or
643	who is enrolled in a school operating for the purpose of
644	providing educational services to youth in Department of
645	Juvenile Justice commitment program programs. For purposes of
646	continuity of educational choice, the scholarship shall remain
647	in force until the student returns to a public school or
648	graduates from high school. However, at any time, the student's
649	parent may remove the student from the private school and place
650	the student in another private school that is eligible for the
651	program under subsection (4) or in a public school as provided
652	in subsection (3).
653	(3)  SCHOOL DISTRICT AND DEPARTMENT OF EDUCATION
654	OBLIGATIONS.--
655	(g)  The Department of Education shall establish a toll-
656	free hotline that provides parents and private schools with
657	information on participation in the John M. McKay Scholarships
658	for Students with Disabilities Program.
659	(h)  The Department of Education shall establish a process
660	by which individuals may notify the department of any violation
661	by a private school of state laws relating to program
662	participation. The department shall conduct an investigation of
663	any written complaint of a violation of this section if the
664	complaint is signed by the complainant and is legally
665	sufficient. A complaint is legally sufficient if it contains
666	ultimate facts that show that a violation of this section or any
667	rule adopted by the State Board of Education or other state
668	agency has occurred. In order to determine legal sufficiency,
669	the Department of Education may require supporting information
670	or documentation from the complainant.
671	(i)  The Department of Education shall require annual
672	completion of a sworn compliance form by participating private
673	schools certifying compliance with state laws and shall retain
674	such records.
675	(j)  The Department of Education shall regularly cross-
676	check the list of participating scholarship students with the
677	public school enrollment lists to avoid duplication.
678	(4)  PRIVATE SCHOOL ELIGIBILITY.--To be eligible to
679	participate in the John M. McKay Scholarships for Students with
680	Disabilities Program, a private school must be a Florida private
681	school, as defined in s. 1002.01(2), may be sectarian or
682	nonsectarian, and must:
683	(a)  Demonstrate fiscal soundness by being in operation for
684	3 school years or obtain 1 school year or provide the Department
685	of Education with a statement by a certified public accountant
686	confirming that the private school desiring to participate is
687	insured and the owner or owners have sufficient capital or
688	credit to operate the school for the upcoming year serving the
689	number of students anticipated with expected revenues from
690	tuition and other sources that may be reasonably expected. In
691	lieu of such a statement, a surety bond or letter of credit for
692	the amount equal to the scholarship funds for any quarter to may
693	be filed with the Department of Education. The surety bond or
694	letter of credit shall serve to secure expenditures of
695	scholarship funds should such funds be found to have been used
696	for unlawful purposes. However, if during the school year a
697	private school exhibits financial difficulty or is otherwise not
698	in compliance with this section, the Commissioner of Education
699	may impose additional requirements on the private school, which
700	may include additional security bonding.
701	(b)  Notify the Department of Education of its intent to
702	participate in the program under this section. The notice must
703	specify the grade levels and services that the private school
704	has available for students with disabilities who are
705	participating in the scholarship program.
706	(c)  Comply with the antidiscrimination provisions of 42
707	U.S.C. s. 2000d.
708	(d)  Meet state and local health and safety laws and codes,
709	including, but not limited to, laws pertaining to:
710	1.  Fire safety.
711	2.  Building codes.
712	(e)  Be academically accountable to the parent for meeting
713	the educational needs of the student by providing to the parent
714	a written explanation of the student's progress.
715	(f)  Employ or contract with teachers who hold
716	baccalaureate or higher degrees, or have at least 3 years of
717	teaching experience in public or private schools, or have
718	special skills, knowledge, or expertise that qualifies them to
719	provide instruction in subjects taught.
720	(g)  Comply with all state laws relating to general
721	regulation of private schools, including, but not limited to,
722	laws pertaining to:
723	1.  Annual private school survey required in s. 1002.42(2).
724	2.  Retention of records required in s. 1002.42(3).
725	3.  Attendance records and reports required in s.
726	1003.23(2).
727	4.  School-entry health examinations and immunizations
728	required in s. 1003.22.
729	5.  Attendance requirements prescribed in ss. 1003.01(13)
730	and 1003.21(1).
731	(h)  Adhere to the tenets of its published disciplinary
732	procedures prior to the expulsion of a scholarship student.
733	(i)  Within 60 days after employment, for any private
734	school owner-operator or private school manager, file with the
735	Department of Law Enforcement a complete set of fingerprints for
736	state processing for a criminal background check. The costs of
737	fingerprinting and the background check shall not be borne by
738	the state. The results of a criminal background check shall be
739	reported to the Department of Education. The owner or operator
740	of the private school shall immediately report to the Department
741	of Education any private school owner-operator or private school
742	manager who has been convicted of a crime that bears upon the
743	individual's fitness to have responsibility for the safety and
744	well-being of children. Employment of such an individual shall
745	cause a private school to be ineligible for participation in the
746	scholarship program. An individual holding a valid Florida
747	teaching certificate who has been fingerprinted pursuant to s.
748	1012.32 shall not be required to comply with the provisions of
749	this paragraph.
750	(j)  Annually comply with the requirements of the
751	Department of Education to complete a sworn compliance form
752	certifying compliance with state laws pursuant to subsection
753	(3). The form and timeline for submission of the compliance form
754	shall be specified in rules adopted by the State Board of
755	Education.
756	(k)  Comply with all applicable state agency rules relating
757	to private schools.
758	(l)  Not operate as a home education program as defined in
759	ss. 1002.01 and 1002.41 or a private tutoring program as
760	described in s. 1002.43.
761	(m)  Maintain a physical private school location in this
762	state where a scholarship student regularly attends classes
763	consistent with s. 1003.01(13)(b) or s. 1003.01(13)(c). However,
764	this paragraph does not preclude a private school from offering
765	services through a satellite-based service network that
766	implements portions of the education or training of a John M.
767	McKay Scholarship student as directed by a professional trained
768	in special education. Such a school must meet all requirements
769	relating to private schools and all other requirements in this
770	section and shall:
771	1.  Make no payments to the parent of the child for
772	services, equipment, instruction, or instructional materials.
773	2.  Employ and direct payment to qualified specialists who
774	can meet the needs of the child as identified in the educational
775	plan developed for the child.
776	3.  Have a physical location for processing services and
777	providing oversight of the child's educational progress.
778	4.  Monitor and supervise work done by the parent and the
779	specialists to follow the educational plan developed for the
780	child.
781	(n)  Require the parent of each scholarship student to
782	personally restrictively endorse the scholarship check to the
783	school. The school may not:
784	1.  Act as attorney in fact for parents of a scholarship
785	student under the authority of a power of attorney executed by
786	such parents, or under any other authority, to endorse
787	scholarship warrants on behalf of parents.
788	2.  Send or direct John M. McKay Scholarship funds to
789	parents of a scholarship student who is home schooled pursuant
790	to s. 1002.41.
791	3.  Accept a John M. McKay Scholarship student until the
792	sworn compliance form has been completed, submitted to, and
793	independently verified by the Department of Education.
794
795	The inability of a private school to meet the requirements of
796	this subsection shall constitute a basis for the ineligibility
797	of the private school to participate in the scholarship program
798	as determined by the Department of Education.
799	(5)  OBLIGATION OF PROGRAM PARTICIPANTS.--
800	(f)  Upon receipt of a scholarship warrant, the parent to
801	whom the warrant is made must restrictively endorse the warrant
802	to the private school for deposit into the account of the
803	private school. A private school may not act as attorney in fact
804	pursuant to paragraph (4)(n).
805	(6)  SCHOLARSHIP FUNDING AND PAYMENT.--
806	(f)  Upon proper documentation reviewed and approved by the
807	Department of Education, the Chief Financial Officer shall make
808	scholarship payments in four equal amounts no later than
809	September 1, November 1, February 1, and April 1 15 of each
810	academic year in which the scholarship is in force. The initial
811	payment shall be made after Department of Education verification
812	of admission acceptance, and subsequent payments shall be made
813	upon verification of continued enrollment and attendance at the
814	private school. Payment must be by individual warrant made
815	payable to the student's parent and mailed by the Department of
816	Education to the private school of the parent's choice, and the
817	parent shall restrictively endorse the warrant to the private
818	school for deposit into the account of the private school.
819	(g)  Subsequent to each scholarship payment, the Department
820	of Financial Services shall randomly review endorsed warrants to
821	confirm compliance with endorsement requirements.
822	(8)  COMMISSIONER AUTHORITY.--The Commissioner of Education
823	may suspend or prohibit a private school or a student from
824	participation in the scholarship program and take other action
825	necessary to ensure compliance with the provisions of this
826	section.
827	Section 3.  This act shall take effect upon becoming a law.

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