HB 1163

1	A bill to be entitled
2	An act relating to scholarship program accountability;
3	amending s. 1002.39, F.S., relating to the John M. McKay
4	Scholarships for Students with Disabilities Program;
5	revising definition of the term "students with
6	disabilities"; revising student eligibility requirements
7	for receipt of a scholarship and restricting eligibility
8	therefor; providing for term of a scholarship; revising
9	and adding school district obligations and clarifying
10	parental options; revising and adding Department of
11	Education obligations, including verification of
12	eligibility of private schools and establishment of a
13	process for notification of violations, subsequent
14	investigation, and certification of compliance by private
15	schools; providing Commissioner of Education authority and
16	obligations, including the denial, suspension, or
17	revocation of a private school's participation in the
18	scholarship program and procedures and timelines therefor;
19	revising private school eligibility and obligations,
20	including compliance with specified laws and academic
21	accountability to the parent; revising parent and student
22	responsibilities for scholarship program participation;
23	prohibiting a private school from acting as attorney in
24	fact to sign a scholarship warrant; revising provisions
25	relating to scholarship funding and payment; providing
26	funding and payment requirements for former Florida School
27	for the Deaf and the Blind students and for students
28	exiting a Department of Juvenile Justice program;
29	providing Department of Financial Services obligations;
30	authorizing waiver of deadlines; requiring adoption of
31	rules; amending s. 220.187, F.S., relating to credits for
32	contributions to nonprofit scholarship-funding
33	organizations; revising and providing definitions; naming
34	the scholarship program; providing student eligibility
35	requirements for receipt of a corporate income tax credit
36	scholarship and restricting eligibility therefor; revising
37	provisions relating to the total amount of tax credits and
38	carryforward of tax credits and providing certain
39	limitation; providing for rescindment of tax credit
40	allocation; revising and adding obligations of eligible
41	nonprofit scholarship-funding organizations, including
42	compliance with requirements for background checks,
43	scholarship-funding organization ownership or operation,
44	audits, and reports; requiring certain information to
45	remain confidential in accordance with s. 213.053, F.S.;
46	revising and adding parent and student responsibilities
47	for scholarship program participation, including
48	compliance with private school's published policies,
49	participation in student academic assessment, and
50	restrictive endorsement of scholarship warrants or checks;
51	prohibiting power of attorney for endorsing a scholarship
52	warrant or check; revising and adding private school
53	eligibility requirements and obligations, including
54	compliance with specified laws and academic accountability
55	to the parent; revising and adding Department of Education
56	obligations, including verification of eligibility of
57	program participants, establishment of a process for
58	notification of violations, subsequent investigation, and
59	certification of compliance by private schools, and
60	selection of a research organization to analyze student
61	performance data; providing Commissioner of Education
62	authority and obligations, including the denial,
63	suspension, or revocation of a private school's
64	participation in the scholarship program and procedures
65	and timelines therefor; revising and adding provisions
66	relating to scholarship funding and payment, including the
67	amount of a scholarship and the payment process; requiring
68	adoption of rules; creating s. 1002.421, F.S., relating to
69	rights and obligations of private schools participating in
70	state school choice scholarship programs; providing
71	requirements for participation in a scholarship program,
72	including compliance with specified state, local, and
73	federal laws and demonstration of fiscal soundness;
74	requiring restrictive endorsement of checks and
75	prohibiting a school from acting as attorney in fact;
76	requiring employment of qualified teachers and background
77	screening of individuals with direct student contact;
78	providing scope of authority; requiring adoption of rules;
79	providing an effective date.
80
81	Be It Enacted by the Legislature of the State of Florida:
82
83	Section 1.  Section 1002.39, Florida Statutes, is amended
84	to read:
85	1002.39  The John M. McKay Scholarships for Students with
86	Disabilities Program.--There is established a program that is
87	separate and distinct from the Opportunity Scholarship Program
88	and is named the John M. McKay Scholarships for Students with
89	Disabilities Program, pursuant to this section.
90	(1)  THE JOHN M. MCKAY SCHOLARSHIPS FOR STUDENTS WITH
91	DISABILITIES PROGRAM.--The John M. McKay Scholarships for
92	Students with Disabilities Program is established to provide the
93	option to attend a public school other than the one to which
94	assigned, or to provide a scholarship to a private school of
95	choice, for students with disabilities for whom an individual
96	education plan has been written in accordance with rules of the
97	State Board of Education. Students with disabilities include K-
98	12 students who are documented as having mental retardation; a
99	mentally handicapped, speech or and language impairment; a
100	impaired, deaf or hard of hearing impairment, including
101	deafness; a visual impairment, including blindness; a visually
102	impaired, dual sensory impairment; a physical impairment; a
103	serious emotional disturbance, including an emotional handicap;
104	a impaired, physically impaired, emotionally handicapped,
105	specific learning disability, including, but not limited to,
106	dyslexia, dyscalculia, or developmental aphasia; a traumatic
107	brain injury; disabled, hospitalized or homebound, or autism
108	autistic.
109	(2)  JOHN M. MCKAY SCHOLARSHIP ELIGIBILITY.--The parent of
110	a public school student with a disability who is dissatisfied
111	with the student's progress may request and receive from the
112	state a John M. McKay Scholarship for the child to enroll in and
113	attend a private school in accordance with this section if:
114	(a)  By assigned school attendance area or by special
115	assignment, The student has spent the prior school year in
116	attendance at a Florida public school or the Florida School for
117	the Deaf and the Blind. Prior school year in attendance means
118	that the student was:
119	1.  Enrolled and reported by a school district for funding
120	during the preceding October and February Florida Education
121	Finance Program surveys in kindergarten through grade 12, which
122	shall include time spent in a Department of Juvenile Justice
123	commitment program if funded under the Florida Education Finance
124	Program; or
125	2.  Enrolled and reported by the Florida School for the
126	Deaf and the Blind during the preceding October and February
127	student membership surveys in kindergarten through grade 12.
128
129	However, this paragraph does not apply to a dependent child of a
130	member of the United States Armed Forces who transfers to a
131	school in this state from out of state or from a foreign country
132	pursuant to a parent's permanent change of station orders is
133	exempt from this paragraph but. A dependent child of a member of
134	the United States Armed Forces who transfers to a school in this
135	state from out of state or from a foreign country pursuant to a
136	parent's permanent change of station orders must meet all other
137	eligibility requirements to participate in the program.
138	(b)  The parent has obtained acceptance for admission of
139	the student to a private school that is eligible for the program
140	under subsection (8)(4) and has requested from the department
141	notified the school district of the request for a scholarship at
142	least 60 days prior to the date of the first scholarship
143	payment. The request parental notification must be through a
144	communication directly to the department district or through the
145	Department of Education to the district in a manner that creates
146	a written or electronic record of the request notification and
147	the date of receipt of the request notification.
148
149	This section does not apply to a student who is enrolled in a
150	school operating for the purpose of providing educational
151	services to youth in Department of Juvenile Justice commitment
152	programs. For purposes of continuity of educational choice, the
153	scholarship shall remain in force until the student returns to a
154	public school or graduates from high school. However, at any
155	time, the student's parent may remove the student from the
156	private school and place the student in another private school
157	that is eligible for the program under subsection (4) or in a
158	public school as provided in subsection (3).
159	(3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student is
160	not eligible for a John M. McKay Scholarship if he or she is:
161	(a)  Enrolled in a school operating for the purpose of
162	providing educational services to youth in Department of
163	Juvenile Justice commitment programs.
164	(b)  Receiving a corporate income tax credit scholarship
165	under s. 220.187.
166	(c)  Receiving an educational scholarship pursuant to this
167	chapter.
168	(d)  Participating in a home education program as defined
169	in s. 1002.01(1).
170	(e)  Participating in a private tutoring program pursuant
171	to s. 1002.43.
172	(f)  Participating in a virtual school, correspondence
173	school, or distance learning program that receives state funding
174	pursuant to the student's participation.
175	(4)  TERM OF JOHN M. MCKAY SCHOLARSHIP.--
176	(a)  For purposes of continuity of educational choice, a
177	John M. McKay Scholarship shall remain in force until the
178	student returns to a public school, graduates from high school,
179	or reaches the age of 22, whichever occurs first.
180	(b)  Upon reasonable notice to the department and the
181	school district, the student's parent may remove the student
182	from the private school and place the student in a public
183	school, as provided in subparagraph (5)(a)2.
184	(c)  Upon reasonable notice to the department, the
185	student's parent may move the student from one participating
186	private school to another participating private school.
187	(5)(3)  SCHOOL DISTRICT AND DEPARTMENT OF EDUCATION
188	OBLIGATIONS; PARENTAL OPTIONS.--
189	(a)1.  A school district shall timely notify, by April 1 of
190	each year and within 10 days after an individual education plan
191	meeting, the parent of the student of all options available
192	pursuant to this section and offer that student's parent an
193	opportunity to enroll the student in another public school
194	within the district.
195	2.  The parent is not required to accept the this offer of
196	enrolling in another public school in lieu of requesting a John
197	M. McKay Scholarship to a private school. However, if the parent
198	chooses the public school option, the student may continue
199	attending a public school chosen by the parent until the student
200	graduates from high school.
201	3.  If the parent chooses a public school consistent with
202	the district school board's choice plan under s. 1002.31, the
203	school district shall provide transportation to the public
204	school selected by the parent. The parent is responsible to
205	provide transportation to a public school chosen that is not
206	consistent with the district school board's choice plan under s.
207	1002.31.
208	(b)1.  For a student with disabilities who does not have a
209	matrix of services under s. 1011.62(1)(e), the school district
210	must complete a matrix that assigns the student to one of the
211	levels of service as they existed prior to the 2000-2001 school
212	year.
213	2.a.  Within 10 school days after it receives notification
214	of a parent's request for a John M. McKay Scholarship, a
215	district school board must notify the student's parent if the
216	matrix has not been completed and inform the parent that the
217	district is required to complete the matrix within 30 days after
218	receiving notice of the parent's request for a John M. McKay
219	Scholarship. This notice should include the required completion
220	date for the matrix.
221	b.  The school district must complete the matrix of
222	services for any student who is participating in the John M.
223	McKay Scholarships for Students with Disabilities Program and
224	must notify the department of Education of the student's matrix
225	level within 30 days after receiving notification of a request
226	by the student's parent of intent to participate in the
227	scholarship program. The school district must provide the
228	student's parent with the student's matrix level within 10
229	school days after its completion.
230	c.  The department of Education shall notify the private
231	school of the amount of the scholarship within 10 days after
232	receiving the school district's notification of the student's
233	matrix level. Within 10 school days after it receives
234	notification of a parent's intent to apply for a McKay
235	Scholarship, a district school board must notify the student's
236	parent if the matrix has not been completed and provide the
237	parent with the date for completion of the matrix required in
238	this paragraph.
239	d.  A school district may change a matrix of services only
240	if the change is to correct a technical, typographical, or
241	calculation error.
242	(c)  A school district shall provide notification to
243	parents of the availability of a reevaluation at least every 3
244	years of each student who receives a John M. McKay Scholarship.
245	(d)(c)  If the parent chooses the private school option and
246	the student is accepted by the private school pending the
247	availability of a space for the student, the parent of the
248	student must notify the department school district 60 days prior
249	to the first scholarship payment and before entering the private
250	school in order to be eligible for the scholarship when a space
251	becomes available for the student in the private school.
252	(e)(d)  The parent of a student may choose, as an
253	alternative, to enroll the student in and transport the student
254	to a public school in an adjacent school district which has
255	available space and has a program with the services agreed to in
256	the student's individual education plan already in place, and
257	that school district shall accept the student and report the
258	student for purposes of the district's funding pursuant to the
259	Florida Education Finance Program.
260	(f)(e)  For a student in the district who participates in
261	the John M. McKay Scholarships for Students with Disabilities
262	Program whose parent requests that the student take the
263	statewide assessments under s. 1008.22, the district shall
264	provide locations and times to take all statewide assessments.
265	(f)  A school district must notify the Department of
266	Education within 10 days after it receives notification of a
267	parent's intent to apply for a scholarship for a student with a
268	disability. A school district must provide the student's parent
269	with the student's matrix level within 10 school days after its
270	completion.
271	(6)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The department
272	shall:
273	(a)  Establish a toll-free hotline that provides parents
274	and private schools with information on participation in the
275	John M. McKay Scholarships for Students with Disabilities
276	Program.
277	(b)  Annually verify the eligibility of private schools
278	that meet the requirements of subsection (8).
279	(c)  Establish a process by which individuals may notify
280	the department of any violation by a parent, private school, or
281	school district of state laws relating to program participation.
282	The department shall conduct an investigation of any written
283	complaint of a violation of this section, or make a referral to
284	the appropriate agency for an investigation, if the complaint is
285	signed by the complainant and is legally sufficient. A complaint
286	is legally sufficient if it contains ultimate facts that show
287	that a violation of this section or any rule adopted by the
288	State Board of Education has occurred. In order to determine
289	legal sufficiency, the department may require supporting
290	information or documentation from the complainant.
291	(d)  Require an annual, notarized, sworn compliance
292	statement by participating private schools certifying compliance
293	with state laws and shall retain such records.
294	(e)  Cross-check the list of participating scholarship
295	students with the public school enrollment lists prior to the
296	first scholarship payment to avoid duplication.
297	(7)  COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.--
298	(a)  The Commissioner of Education shall deny, suspend, or
299	revoke a private school's participation in the scholarship
300	program if it is determined that the private school has failed
301	to comply with the provisions of this section. However, in
302	instances in which the noncompliance is correctable within a
303	reasonable amount of time and in which the health, safety, and
304	welfare of the students are not threatened, the commissioner may
305	issue a notice of noncompliance which shall provide the private
306	school with a timeframe within which to provide evidence of
307	compliance prior to taking action to suspend or revoke the
308	private school's participation in the scholarship program.
309	(b)  The commissioner's determination is subject to the
310	following:
311	1.  If the commissioner intends to deny, suspend, or revoke
312	a private school's participation in the scholarship program, the
313	department shall notify the private school of such proposed
314	action in writing by certified mail and regular mail to the
315	private school's address of record with the department. The
316	notification shall include the reasons for the proposed action
317	and notice of the timelines and procedures set forth in this
318	paragraph.
319	2.  The private school that is adversely affected by the
320	proposed action shall have 15 days from receipt of the notice of
321	proposed action to file with the department's agency clerk a
322	request for a proceeding pursuant to ss. 120.569 and 120.57. If
323	the private school is entitled to a hearing under s. 120.57(1),
324	the department shall forward the request to the Division of
325	Administrative Hearings.
326	3.  Upon receipt of a request referred pursuant to this
327	paragraph, the director of the Division of Administrative
328	Hearings shall expedite the hearing and assign an administrative
329	law judge who shall commence a hearing within 30 days after the
330	receipt of the formal written request by the division and enter
331	a recommended order within 30 days after the hearing or within
332	30 days after receipt of the hearing transcript, whichever is
333	later. Each party shall be allowed 10 days in which to submit
334	written exceptions to the recommended order. A final order shall
335	be entered by the agency within 30 days after the entry of a
336	recommended order. The provisions of this subparagraph may be
337	waived upon stipulation by all parties.
338	(c)  The commissioner may immediately suspend payment of
339	scholarship funds if it is determined that there is probable
340	cause to believe that there is:
341	1.  An imminent threat to the health, safety, and welfare
342	of the students; or
343	2.  Fraudulent activity on the part of the private school.
344
345	The commissioner's order suspending payment pursuant to this
346	paragraph may be appealed pursuant to the same procedures and
347	timelines as the notice of proposed action set forth in
348	paragraph (b).
349	(8)(4)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--To be
350	eligible to participate in the John M. McKay Scholarships for
351	Students with Disabilities Program, a private school must be a
352	Florida private school, may be sectarian or nonsectarian, and
353	must:
354	(a)  Comply with all requirements for private schools
355	participating in state school choice scholarship programs
356	pursuant to s. 1002.421.
357	(b)  Provide the department all documentation required for
358	a student's participation, including the private school's and
359	student's fee schedules, at least 30 days before the first
360	quarterly scholarship payment is made for the student.
361	(c)  Be academically accountable to the parent for meeting
362	the educational needs of the student by:
363	1.  At a minimum, annually providing to the parent a
364	written explanation of the student's progress.
365	2.  Cooperating with the scholarship student whose parent
366	chooses to participate in the statewide assessments pursuant to
367	s. 1008.22.
368
369	The inability of a private school to meet the requirements of
370	this subsection shall constitute a basis for the ineligibility
371	of the private school to participate in the scholarship program
372	as determined by the department.
373	(a)     Demonstrate fiscal soundness by being in operation for
374	1 school year or provide the Department of Education with a
375	statement by a certified public accountant confirming that the
376	private school desiring to participate is insured and the owner
377	or owners have sufficient capital or credit to operate the
378	school for the upcoming year serving the number of students
379	anticipated with expected revenues from tuition and other
380	sources that may be reasonably expected. In lieu of such a
381	statement, a surety bond or letter of credit for the amount
382	equal to the scholarship funds for any quarter may be filed with
383	the department.
384	(b)  Notify the Department of Education of its intent to
385	participate in the program under this section. The notice must
386	specify the grade levels and services that the private school
387	has available for students with disabilities who are
388	participating in the scholarship program.
389	(c)  Comply with the antidiscrimination provisions of 42
390	U.S.C. s. 2000d.
391	(d)  Meet state and local health and safety laws and codes.
392	(e)  Be academically accountable to the parent for meeting
393	the educational needs of the student.
394	(f)  Employ or contract with teachers who hold
395	baccalaureate or higher degrees, or have at least 3 years of
396	teaching experience in public or private schools, or have
397	special skills, knowledge, or expertise that qualifies them to
398	provide instruction in subjects taught.
399	(g)  Comply with all state laws relating to general
400	regulation of private schools.
401	(h)  Adhere to the tenets of its published disciplinary
402	procedures prior to the expulsion of a scholarship student.
403	(9)(5)  PARENT AND STUDENT RESPONSIBILITIES FOR OBLIGATION
404	OF PROGRAM PARTICIPATION PARTICIPANTS.--A parent who applies for
405	a John M. McKay Scholarship is exercising his or her parental
406	option to place his or her child in a private school.
407	(a)  A parent who applies for a John M. McKay Scholarship
408	is exercising his or her parental option to place his or her
409	child in a private school. The parent must select the private
410	school and apply for the admission of his or her child.
411	(b)  The parent must have requested the scholarship at
412	least 60 days prior to the date of the first scholarship
413	payment.
414	(c)  Any student participating in the John M. McKay
415	Scholarships for Students with Disabilities scholarship Program
416	must remain in attendance throughout the school year, unless
417	excused by the school for illness or other good cause, and must
418	comply fully with the school's code of conduct.
419	(d)  Each The parent and of each student has an obligation
420	to the private school to participating in the scholarship
421	program must comply fully with the private school's published
422	policies parental involvement requirements, unless excused by
423	the school for illness or other good cause.
424	(e)  If the parent requests that the student participating
425	in the John M. McKay Scholarships for Students with Disabilities
426	scholarship Program take all statewide assessments required
427	pursuant to s. 1008.22, the parent is responsible for
428	transporting the student to the assessment site designated by
429	the school district.
430	(f)  Upon receipt of a scholarship warrant, the parent to
431	whom the warrant is made must restrictively endorse the warrant
432	to the private school for deposit into the account of the
433	private school. The parent may not designate any entity or
434	individual associated with the participating private school as
435	the parent's attorney in fact to sign a scholarship warrant. A
436	participant who fails to comply with this paragraph forfeits the
437	scholarship.
438	(g)  A participant who fails to comply with this subsection
439	forfeits the scholarship.
440	(10)(6)  JOHN M. MCKAY SCHOLARSHIP FUNDING AND PAYMENT.--
441	(a)1.  The maximum scholarship granted for an eligible
442	student with disabilities shall be a calculated amount
443	equivalent to the base student allocation in the Florida
444	Education Finance Program multiplied by the appropriate cost
445	factor for the educational program that would have been provided
446	for the student in the district school to which he or she was
447	assigned, multiplied by the district cost differential.
448	2.  In addition, a share of the guaranteed allocation for
449	exceptional students shall be determined and added to the
450	calculated amount. The calculation shall be based on the
451	methodology and the data used to calculate the guaranteed
452	allocation for exceptional students for each district in chapter
453	2000-166, Laws of Florida. Except as provided in subparagraphs
454	subparagraph 3. and 4., the calculation shall be based on the
455	student's grade, matrix level of services, and the difference
456	between the 2000-2001 basic program and the appropriate level of
457	services cost factor, multiplied by the 2000-2001 base student
458	allocation and the 2000-2001 district cost differential for the
459	sending district. Also, the calculated amount shall include the
460	per-student share of supplemental academic instruction funds,
461	instructional materials funds, technology funds, and other
462	categorical funds as provided for such purposes in the General
463	Appropriations Act.
464	3.  The calculated scholarship amount for a student who has
465	spent the prior school year in attendance at the Florida School
466	for the Deaf and the Blind shall be calculated as provided in
467	subparagraphs 1. and 2. However, the calculation shall be based
468	on the school district in which the parent resides at the time
469	of the scholarship request.
470	4.3.  Until the school district completes the matrix
471	required by paragraph (5)(3)(b), the calculation shall be based
472	on the matrix that assigns the student to support level I of
473	service as it existed prior to the 2000-2001 school year. When
474	the school district completes the matrix, the amount of the
475	payment shall be adjusted as needed.
476	(b)  The amount of the John M. McKay Scholarship shall be
477	the calculated amount or the amount of the private school's
478	tuition and fees, whichever is less. The amount of any
479	assessment fee required by the participating private school may
480	be paid from the total amount of the scholarship.
481	(c)  If the participating private school requires partial
482	payment of tuition prior to the start of the academic year to
483	reserve space for students admitted to the school, that partial
484	payment may be paid by the Department of Education prior to the
485	first quarterly payment of the year in which the John M. McKay
486	Scholarship is awarded, up to a maximum of $1,000, and deducted
487	from subsequent scholarship payments. If a student decides not
488	to attend the participating private school, the partial
489	reservation payment must be returned to the Department of
490	Education by the participating private school. There is a limit
491	of one reservation payment per student per year.
492	(c)1.(d)  The school district shall report all students who
493	are attending a private school under this program. The students
494	with disabilities attending private schools on John M. McKay
495	Scholarships shall be reported separately from other students
496	reported for purposes of the Florida Education Finance Program.
497	2.  For program participants who are eligible under
498	subparagraph (2)(a)2., the school district that is used as the
499	basis for the calculation of the scholarship amount as provided
500	in subparagraph (a)3. shall:
501	a.  Report to the department all such students who are
502	attending a private school under this program.
503	b.  Be held harmless for such students from the weighted
504	enrollment ceiling for group 2 programs in s. 1011.62(1)(d)3.a.
505	during the first school year in which the students are reported.
506	(d)(e)  Following notification on July 1, September 1,
507	December 1, or February 1 of the number of program participants,
508	the department of Education shall transfer, from General Revenue
509	funds only, the amount calculated under paragraph (b) from the
510	school district's total funding entitlement under the Florida
511	Education Finance Program and from authorized categorical
512	accounts to a separate account for the scholarship program for
513	quarterly disbursement to the parents of participating students.
514	Funds may not be transferred from any funding provided to the
515	Florida School for the Deaf and the Blind for program
516	participants who are eligible under subparagraph (2)(a)2. For a
517	student exiting a Department of Juvenile Justice commitment
518	program who chooses to participate in the scholarship program,
519	the amount of the John M. McKay Scholarship calculated pursuant
520	to paragraph (b) shall be transferred from the school district
521	in which the student last attended a public school prior to
522	commitment to the Department of Juvenile Justice. When a student
523	enters the scholarship program, the department of Education must
524	receive all documentation required for the student's
525	participation, including the private school's and student's fee
526	schedules, at least 30 days before the first quarterly
527	scholarship payment is made for the student. The Department of
528	Education may not make any retroactive payments.
529	(e)(f)  Upon notification proper documentation reviewed and
530	approved by the department that it has received the
531	documentation required under paragraph (d) Department of
532	Education, the Chief Financial Officer shall make scholarship
533	payments in four equal amounts no later than September 1,
534	November 1, February 1, and April 1 15 of each academic year in
535	which the scholarship is in force. The initial payment shall be
536	made after department of Education verification of admission
537	acceptance, and subsequent payments shall be made upon
538	verification of continued enrollment and attendance at the
539	private school. Payment must be by individual warrant made
540	payable to the student's parent and mailed by the department of
541	Education to the private school of the parent's choice, and the
542	parent shall restrictively endorse the warrant to the private
543	school for deposit into the account of the private school.
544	(f)  Subsequent to each scholarship payment, the Department
545	of Financial Services shall randomly review endorsed warrants to
546	confirm compliance with endorsement requirements. The Department
547	of Financial Services shall immediately report inconsistencies
548	or irregularities to the department.
549	(11)(7)  LIABILITY.--No liability shall arise on the part
550	of the state based on the award or use of a John M. McKay
551	Scholarship.
552	(12)  WAIVER.--In the event of an act of God, the State
553	Board of Education shall have the authority to waive any
554	deadlines to effectuate the purposes of the scholarship program.
555	(13)  SCOPE OF AUTHORITY.--The inclusion of eligible
556	private schools within options available to Florida public
557	school students does not expand the regulatory authority of the
558	state, its officers, or any school district to impose any
559	additional regulation of private schools beyond those reasonably
560	necessary to enforce requirements expressly set forth in this
561	section.
562	(14)(8)  RULES.--The State Board of Education shall adopt
563	rules pursuant to ss. 120.536(1) and 120.54 to administer this
564	section, including rules that school districts must use to
565	expedite the development of a matrix of services based on an
566	active a current individual education plan from another state or
567	a foreign country for a transferring student with a disability
568	who is a dependent child of a member of the United States Armed
569	Forces. The rules must identify the appropriate school district
570	personnel who must complete the matrix of services. For purposes
571	of these rules, a transferring student with a disability is one
572	who was previously enrolled as a student with a disability in an
573	out-of-state or an out-of-country public or private school or
574	agency program and who is transferring from out of state or from
575	a foreign country pursuant to a parent's permanent change of
576	station orders. However, the inclusion of eligible private
577	schools within options available to Florida public school
578	students does not expand the regulatory authority of the state,
579	its officers, or any school district to impose any additional
580	regulation of private schools beyond those reasonably necessary
581	to enforce requirements expressly set forth in this section.
582	Section 2.  Section 220.187, Florida Statutes, is amended
583	to read:
584	220.187  Credits for contributions to nonprofit
585	scholarship-funding organizations.--
586	(1)  PURPOSE.--The purpose of this section is to:
587	(a)  Encourage private, voluntary contributions to
588	nonprofit scholarship-funding organizations.
589	(b)  Expand educational opportunities for children of
590	families that have limited financial resources.
591	(c)  Enable children in this state to achieve a greater
592	level of excellence in their education.
593	(2)  DEFINITIONS.--As used in this section, the term:
594	(a)  "Department" means the Department of Revenue.
595	(b)  "Eligible contribution" means a monetary contribution
596	from a taxpayer, subject to the restrictions provided in this
597	section, to an eligible nonprofit scholarship-funding
598	organization. The taxpayer making the contribution may not
599	designate a specific child as the beneficiary of the
600	contribution. The taxpayer may not contribute more than $5
601	million to any single eligible nonprofit scholarship-funding
602	organization.
603	(c)(d)  "Eligible nonprofit scholarship-funding
604	organization" means a charitable organization that:
605	1.  Is exempt from federal income tax pursuant to s.
606	501(c)(3) of the Internal Revenue Code.
607	2.  Is a Florida entity formed under chapter 607, chapter
608	608, or chapter 617 and whose principal office is located in the
609	state.
610	3.  and that Complies with the provisions of subsection
611	(6)(4).
612	(d)(c)  "Eligible private nonpublic school" means a private
613	nonpublic school, as defined in s. 1002.01(2), located in
614	Florida that offers an education to students in any grades K-12
615	and that meets the requirements in subsection (8)(6).
616	(e)  "Owner or operator" includes:
617	1.  An owner, president, officer, or director of an
618	eligible nonprofit scholarship-funding organization or a person
619	with equivalent decisionmaking authority over an eligible
620	nonprofit scholarship-funding organization.
621	2.  An owner, operator, superintendent, or principal of an
622	eligible private school or a person with equivalent
623	decisionmaking authority over an eligible private school.
624	(e) "Qualified student" means a student who qualifies for
625	free or reduced-price school lunches under the National School
626	Lunch Act and who:
627	(3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
628	Income Tax Credit Scholarship Program is established. A student
629	is eligible for a corporate income tax credit scholarship if the
630	student qualifies for free or reduced-price school lunches under
631	the National School Lunch Act and:
632	(a)1.  Was counted as a full-time equivalent student during
633	the previous state fiscal year for purposes of state per-student
634	funding;
635	(b)2.  Received a scholarship from an eligible nonprofit
636	scholarship-funding organization during the previous school
637	year; or
638	(c)3.  Is eligible to enter kindergarten or first grade.
639
640	A student may continue in the scholarship program as long as the
641	family income level does not exceed 200 percent of the federal
642	poverty level.
643	(4)  SCHOLARSHIP PROHIBITIONS.--A student is not eligible
644	for a scholarship if he or she is:
645	(a)  Enrolled in a school operating for the purpose of
646	providing educational services to youth in Department of
647	Juvenile Justice commitment programs.
648	(b)  Receiving a scholarship from another eligible
649	nonprofit scholarship-funding organization under this section.
650	(c)  Receiving an educational scholarship pursuant to
651	chapter 1002.
652	(d)  Participating in a home education program as defined
653	in s. 1002.01(1).
654	(e)  Participating in a private tutoring program pursuant
655	to s. 1002.43.
656	(f)  Participating in a virtual school, correspondence
657	school, or distance learning program that receives state funding
658	pursuant to the student's participation.
659	(5)(3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
660	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
661	(a)  There is allowed a credit of 100 percent of an
662	eligible contribution against any tax due for a taxable year
663	under this chapter. However, such a credit may not exceed 75
664	percent of the tax due under this chapter for the taxable year,
665	after the application of any other allowable credits by the
666	taxpayer. However, at least 5 percent of the total statewide
667	amount authorized for the tax credit shall be reserved for
668	taxpayers who meet the definition of a small business provided
669	in s. 288.703(1) at the time of application. The credit granted
670	by this section shall be reduced by the difference between the
671	amount of federal corporate income tax taking into account the
672	credit granted by this section and the amount of federal
673	corporate income tax without application of the credit granted
674	by this section.
675	(b)  The total amount of tax credits and carryforward of
676	tax credits which may be granted each state fiscal year under
677	this section is $88 million during the 2005-2006 fiscal year.
678	The total amount of tax credits and carryforward of tax credits
679	which may be granted under this section shall be adjusted each
680	year by the same percentage as the increase or decrease in total
681	funding, adjusted for Florida Retirement System changes if
682	applicable, under the Florida Education Finance Program as
683	provided in the General Appropriations Act workpapers. However,
684	the total amount of tax credits that may be granted pursuant to
685	this paragraph may not increase by more than 5 percent in any
686	year. The Commissioner of Education shall certify to the
687	department and notify eligible nonprofit scholarship-funding
688	organizations of the resulting value of tax credits that may be
689	granted within 30 days after the General Appropriations Act
690	becomes law. However, at least 1 percent of the total statewide
691	amount authorized for the tax credit shall be reserved for
692	taxpayers who meet the definition of a small business provided
693	in s. 288.703(1) at the time of application.
694	(c)  A taxpayer who files a Florida consolidated return as
695	a member of an affiliated group pursuant to s. 220.131(1) may be
696	allowed the credit on a consolidated return basis; however, the
697	total credit taken by the affiliated group is subject to the
698	limitation established under paragraph (a).
699	(d)  Effective for tax years beginning January 1, 2005, a
700	taxpayer may rescind all or part of its allocated tax credit
701	under this section. The amount rescinded shall become available
702	for purposes of the cap for that state fiscal year under this
703	section to an eligible taxpayer as approved by the department if
704	the taxpayer receives notice from the department that the
705	rescindment has been accepted by the department and the taxpayer
706	has not previously rescinded any or all of its tax credit
707	allocation under this section more than once in the previous 3
708	tax years. Any amount rescinded under this paragraph shall
709	become available to an eligible taxpayer on a first-come, first-
710	served basis based on tax credit applications received after the
711	date the rescindment is accepted by the department.
712	(6)(4)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-
713	FUNDING ORGANIZATIONS.--An eligible nonprofit scholarship-
714	scholarship-funding organization:
715	(a)  Must comply with the antidiscrimination provisions of
716	42 U.S.C. s. 2000d.
717	(b)  Must comply with the following background check
718	requirements:
719	1.  An owner or operator of an eligible nonprofit
720	scholarship-funding organization is subject to level 1
721	background screening as provided under chapter 435.
722	2.  A nonprofit scholarship-funding organization whose
723	owner or operator fails the level 1 background screening shall
724	not be eligible to provide scholarships under this section.
725	3.  A nonprofit scholarship-funding organization whose
726	owner or operator in the last 7 years has filed for personal
727	bankruptcy or corporate bankruptcy in a corporation of which he
728	or she owned more than 20 percent shall not be eligible to
729	provide scholarships under this section.
730	(c)  Must not have an owner or operator who owns or
731	operates an eligible private school that is participating in the
732	scholarship program.
733	(d)(a)  Must An eligible nonprofit scholarship-funding
734	organization shall provide scholarships, from eligible
735	contributions, to eligible qualified students for:
736	1.  Tuition or textbook expenses for, or transportation to,
737	an eligible private nonpublic school. At least 75 percent of the
738	scholarship funding must be used to pay tuition expenses; or
739	2.  Transportation expenses to a Florida public school that
740	is located outside the district in which the student resides or
741	to a lab school as defined in s. 1002.32.
742	(e)(b)  Must An eligible nonprofit scholarship-funding
743	organization shall give priority to eligible qualified students
744	who received a scholarship from an eligible nonprofit
745	scholarship-funding organization during the previous school
746	year.
747	(f)  Must provide a scholarship to an eligible student on a
748	first-come, first-served basis unless the student qualifies for
749	priority pursuant to paragraph (e).
750	(g)  May not restrict or reserve scholarships for use at a
751	particular private school or provide scholarships to a child of
752	an owner or operator.
753	(h)  Must allow an eligible student to attend any eligible
754	private school and must allow a parent to transfer a scholarship
755	during a school year to any other eligible private school of the
756	parent's choice.
757	(c)  The amount of a scholarship provided to any child for
758	any single school year by all eligible nonprofit scholarship-
759	funding organizations from eligible contributions shall not
760	exceed the following annual limits:
761	1.  Three thousand five hundred dollars for a scholarship
762	awarded to a student enrolled in an eligible nonpublic school.
763	2.  Five hundred dollars for a scholarship awarded to a
764	student enrolled in a Florida public school that is located
765	outside the district in which the student resides.
766	(d)  The amount of an eligible contribution which may be
767	accepted by an eligible nonprofit scholarship-funding
768	organization is limited to the amount needed to provide
769	scholarships for qualified students which the organization has
770	identified and for which vacancies in eligible nonpublic schools
771	have been identified.
772	(i)(e)  Must obligate An eligible nonprofit scholarship-
773	funding organization that receives an eligible contribution must
774	spend 100 percent of the eligible contribution to provide
775	scholarships in the same state fiscal year in which the
776	contribution was received. No portion of eligible contributions
777	may be used for administrative expenses. All interest accrued
778	from contributions must be used for scholarships.
779	(j)  Must maintain separate accounts for scholarship funds
780	and operating funds.
781	(k)  May transfer funds to another eligible nonprofit
782	scholarship-funding organization when additional funds are
783	required to meet scholarship demand.
784	(l)  May obtain a secured line of credit to fund
785	scholarship payments based on estimated contributions to be
786	received within a 6-month period. These funds may only be used
787	to provide scholarship payments. Interest and fees related to
788	the line of credit shall be paid from the eligible nonprofit
789	scholarship-funding organization's operating budget and not from
790	contributions or loan proceeds.
791	(m)(f)  Must An eligible nonprofit scholarship-funding
792	organization that receives eligible contributions must provide
793	to the Auditor General and the Department of Education an annual
794	financial and compliance audit of its accounts and records
795	conducted by an independent certified public accountant and in
796	accordance with rules adopted by the Auditor General. The audit
797	must be conducted in compliance with generally accepted auditing
798	standards and must include a report on financial statements
799	presented in accordance with generally accepted accounting
800	principles set forth by the American Institute of Certified
801	Public Accountants for not-for-profit organizations and a
802	determination of compliance with the statutory eligibility and
803	expenditure requirements set forth in this section. Audits must
804	be provided to the Auditor General and the Department of
805	Education within 180 days after completion of the eligible
806	nonprofit scholarship-funding organization's fiscal year.
807	(n)  Must prepare and submit quarterly reports to the
808	Department of Education pursuant to paragraph (9)(m). In
809	addition, an eligible nonprofit scholarship-funding organization
810	must submit in a timely manner any information requested by the
811	Department of Education relating to the scholarship program.
812
813	Any and all information and documentation provided to the
814	Department of Education and the Auditor General relating to the
815	identity of a taxpayer that provides an eligible contribution
816	under this section shall remain confidential at all times in
817	accordance with s. 213.053.
818	(g)  Payment of the scholarship by the eligible nonprofit
819	scholarship-funding organization shall be by individual warrant
820	or check made payable to the student's parent. If the parent
821	chooses for his or her child to attend an eligible nonpublic
822	school, the warrant or check must be mailed by the eligible
823	nonprofit scholarship-funding organization to the nonpublic
824	school of the parent's choice, and the parent shall
825	restrictively endorse the warrant or check to the nonpublic
826	school. An eligible nonprofit scholarship-funding organization
827	shall ensure that, upon receipt of a scholarship warrant or
828	check, the parent to whom the warrant or check is made
829	restrictively endorses the warrant or check to the nonpublic
830	school of the parent's choice for deposit into the account of
831	the nonpublic school.
832	(7)(5)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
833	PARTICIPATION OBLIGATIONS.--As a condition for scholarship
834	payment pursuant to paragraph (4)(g), if the parent chooses for
835	his or her child to attend an eligible nonpublic school, the
836	parent must inform the child's school district within 15 days
837	after such decision.
838	(a)  The parent must select an eligible private school and
839	apply for the admission of his or her child.
840	(b)  The parent must inform the child's school district
841	when the parent withdraws his or her child to attend an eligible
842	private school.
843	(c)  Any student participating in the scholarship program
844	must remain in attendance throughout the school year, unless
845	excused by the school for illness or other good cause.
846	(d)  Each parent and each student has an obligation to the
847	private school to comply with the private school's published
848	policies.
849	(e)  The parent shall ensure that the student participating
850	in the scholarship program takes the norm-referenced assessment
851	offered by the private school. The parent may also choose to
852	have the student participate in the statewide assessments
853	pursuant to s. 1008.22. If the parent requests that the student
854	participating in the scholarship program take statewide
855	assessments pursuant to s. 1008.22, the parent is responsible
856	for transporting the student to the assessment site designated
857	by the school district.
858	(f)  Upon receipt of a scholarship warrant or check from
859	the eligible nonprofit scholarship-funding organization, the
860	parent to whom the warrant or check is made must restrictively
861	endorse the warrant or check to the private school for deposit
862	into the account of the private school. The parent may not
863	designate any entity or individual associated with the
864	participating private school as the parent's attorney in fact to
865	sign a scholarship warrant or check. A participant who fails to
866	comply with this paragraph forfeits the scholarship.
867	(8)(6)  PRIVATE ELIGIBLE NONPUBLIC SCHOOL ELIGIBILITY AND
868	OBLIGATIONS.--An eligible private nonpublic school may be
869	sectarian or nonsectarian and must:
870	(a)  Comply with all requirements for private schools
871	participating in state school choice scholarship programs
872	pursuant to s. 1002.421.
873	(b)  Provide to the eligible nonprofit scholarship-funding
874	organization, upon request, all documentation required for the
875	student's participation, including the private school's and
876	student's fee schedules.
877	(c)  Be academically accountable to the parent for meeting
878	the educational needs of the student by:
879	1.  At a minimum, annually providing to the parent a
880	written explanation of the student's progress.
881	2.  Annually administering or making provision for students
882	participating in the scholarship program to take one of the
883	nationally norm-referenced tests identified by the Department of
884	Education. Students with disabilities for whom standardized
885	testing is not appropriate are exempt from this requirement. A
886	participating private school must report a student's scores to
887	the parent and to the independent private research organization
888	selected by the Department of Education pursuant to paragraph
889	(9)(j).
890	3.  Cooperating with the scholarship student whose parent
891	chooses to participate in the statewide assessments pursuant to
892	s. 1008.32.
893
894	The inability of a private school to meet the requirements of
895	this subsection shall constitute a basis for the ineligibility
896	of the private school to participate in the scholarship program
897	as determined by the Department of Education.
898	(a)  Demonstrate fiscal soundness by being in operation for
899	one school year or provide the Department of Education with a
900	statement by a certified public accountant confirming that the
901	nonpublic school desiring to participate is insured and the
902	owner or owners have sufficient capital or credit to operate the
903	school for the upcoming year serving the number of students
904	anticipated with expected revenues from tuition and other
905	sources that may be reasonably expected. In lieu of such a
906	statement, a surety bond or letter of credit for the amount
907	equal to the scholarship funds for any quarter may be filed with
908	the department.
909	(b)  Comply with the antidiscrimination provisions of 42
910	U.S.C. s. 2000d.
911	(c)  Meet state and local health and safety laws and codes.
912	(d)  Comply with all state laws relating to general
913	regulation of nonpublic schools.
914	(9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The Department
915	of Education shall:
916	(a)  Annually submit to the department, by March 15, a list
917	of eligible nonprofit scholarship-funding organizations that
918	meet the requirements of paragraph (2)(c).
919	(b)  Annually verify the eligibility of nonprofit
920	scholarship-funding organizations that meet the requirements of
921	paragraph (2)(c).
922	(c)  Annually verify the eligibility of private schools
923	that meet the requirements of subsection (8).
924	(d)  Annually verify the eligibility of expenditures as
925	provided in paragraph (6)(d) using the audit required by
926	paragraph (6)(m).
927	(e)  Establish a toll-free hotline that provides parents
928	and private schools with information on participation in the
929	scholarship program.
930	(f)  Establish a process by which individuals may notify
931	the Department of Education of any violation by a parent,
932	private school, or school district of state laws relating to
933	program participation. The Department of Education shall conduct
934	an investigation of any written complaint of a violation of this
935	section, or make a referral to the appropriate agency for an
936	investigation, if the complaint is signed by the complainant and
937	is legally sufficient. A complaint is legally sufficient if it
938	contains ultimate facts that show that a violation of this
939	section or any rule adopted by the State Board of Education has
940	occurred. In order to determine legal sufficiency, the
941	Department of Education may require supporting information or
942	documentation from the complainant.
943	(g)  Require an annual, notarized, sworn compliance
944	statement by participating private schools certifying compliance
945	with state laws and shall retain such records.
946	(h)  Cross-check the list of participating scholarship
947	students with the public school enrollment lists to avoid
948	duplication.
949	(i)  Identify all nationally norm-referenced tests that are
950	comparable to the norm-referenced test portions of the Florida
951	Comprehensive Assessment Test (FCAT).
952	(j)  Select an independent private research organization to
953	which participating private schools must report the scores of
954	participating students on the nationally norm-referenced tests
955	administered by the private school. The independent private
956	research organization must annually report to the Department of
957	Education on the year-to-year improvements of participating
958	students. The independent private research organization must
959	analyze and report student performance data in a manner that
960	protects the rights of students and parents as mandated in 20
961	U.S.C. s. 1232g, the Family Educational Rights and Privacy Act,
962	and must not disaggregate data to a level that will disclose the
963	academic level of individual students or of individual schools.
964	To the extent possible, the independent private research
965	organization must accumulate historical performance data on
966	students from the Department of Education and private schools to
967	describe baseline performance and to conduct longitudinal
968	studies. To minimize costs and reduce time required for third-
969	party analysis and evaluation, the Department of Education shall
970	conduct analyses of matched students from public school
971	assessment data and calculate control group learning gains using
972	an agreed-upon methodology outlined in the contract with the
973	third-party evaluator. The sharing of student data must be in
974	accordance with requirements of 20 U.S.C. 1232g, the Family
975	Educational Rights and Privacy Act, and shall be for the sole
976	purpose of conducting the evaluation. All parties must preserve
977	the confidentiality of such information as required by law.
978	(k)  Notify an eligible nonprofit scholarship-funding
979	organization of any of the organization's identified students
980	who are receiving an educational scholarship pursuant to chapter
981	1002.
982	(l)  Notify an eligible nonprofit scholarship-funding
983	organization of any of the organization's identified students
984	who are receiving a corporate income tax credit scholarship from
985	another eligible nonprofit scholarship-funding organization.
986	(m)  Require quarterly reports by an eligible nonprofit
987	scholarship-funding organization regarding the number of
988	students participating in the scholarship program, the private
989	schools at which the students are enrolled, and other
990	information deemed necessary by the Department of Education.
991	(10)  COMMISSIONER OF EDUCATION AUTHORITY AND
992	OBLIGATIONS.--     (a)  The Commissioner of Education shall deny,
993	suspend, or revoke a private school's participation in the
994	scholarship program if it is determined that the private school
995	has failed to comply with the provisions of this section.
996	However, in instances in which the noncompliance is correctable
997	within a reasonable amount of time and in which the health,
998	safety, and welfare of the students are not threatened, the
999	commissioner may issue a notice of noncompliance which shall
1000	provide the private school with a timeframe within which to
1001	provide evidence of compliance prior to taking action to suspend
1002	or revoke the private school's participation in the scholarship
1003	program.
1004	(b)  The commissioner's determination is subject to the
1005	following:
1006	1.  If the commissioner intends to deny, suspend, or revoke
1007	a private school's participation in the scholarship program, the
1008	Department of Education shall notify the private school of such
1009	proposed action in writing by certified and regular mail to the
1010	private school's address of record with the Department of
1011	Education. The notification shall include the reasons for the
1012	proposed action and notice of the timelines and procedures set
1013	forth in this paragraph.
1014	2.  The private school that is adversely affected by the
1015	proposed action shall have 15 days from receipt of the notice of
1016	proposed action to file with the Department of Education's
1017	agency clerk a request for a proceeding pursuant to ss. 120.569
1018	and 120.57. If the private school is entitled to a hearing under
1019	s. 120.57(1), the Department of Education shall forward the
1020	request to the Division of Administrative Hearings.
1021	3.  Upon receipt of a request referred pursuant to this
1022	paragraph, the director of the Division of Administrative
1023	Hearings shall expedite the hearing and assign an administrative
1024	law judge who shall commence a hearing within 30 days after the
1025	receipt of the formal written request by the division and enter
1026	a recommended order within 30 days after the hearing or within
1027	30 days after receipt of the hearing transcript, whichever is
1028	later. Each party shall be allowed 10 days in which to submit
1029	written exceptions to the recommended order. A final order shall
1030	be entered by the agency within 30 days after the entry of a
1031	recommended order. The provisions of this subparagraph may be
1032	waived upon stipulation by all parties.
1033	(c)  The commissioner may immediately suspend payment of
1034	scholarship funds if it is determined that there is probable
1035	cause to believe that there is:
1036	1.  An imminent threat to the health, safety, and welfare
1037	of the students; or
1038	2.  Fraudulent activity on the part of the private school.
1039
1040	The commissioner's order suspending payment pursuant to this
1041	paragraph may be appealed pursuant to the same procedures and
1042	timelines as the notice of proposed action set forth in
1043	paragraph (b).
1044	(11)  SCHOLARSHIP AMOUNT AND PAYMENT.--
1045	(a)  The amount of a scholarship provided to any student
1046	for any single school year by an eligible nonprofit scholarship-
1047	funding organization from eligible contributions shall not
1048	exceed the following annual limits:
1049	1.  Three thousand five hundred dollars for a scholarship
1050	awarded to a student enrolled in an eligible private school.
1051	2.  Five hundred dollars for a scholarship awarded to a
1052	student enrolled in a Florida public school that is located
1053	outside the district in which the student resides or in a lab
1054	school as defined in s. 1002.32.
1055
1056	Scholarship amounts in subparagraph (a)1. are for the 2005-2006
1057	fiscal year. The amount of each scholarship shall be adjusted
1058	each year by the same percentage as the increase or decrease in
1059	total funds per unweighted FTE, adjusted for Florida Retirement
1060	System changes if applicable, under the Florida Education Finance
1061	Program as provided in the General Appropriations Act workpapers.
1062	However, the scholarship amount may not increase by more than 3
1063	percent in any year. The Commissioner of Education shall certify
1064	to the department and notify eligible nonprofit scholarship-
1065	funding organizations of the resulting value of the scholarship
1066	within 30 days after the General Appropriations Act becomes law.
1067	(b)  Payment of the scholarship by the eligible nonprofit
1068	scholarship-funding organization shall be by individual warrant
1069	or check made payable to the student's parent. If the parent
1070	chooses for his or her child to attend an eligible private
1071	school, the warrant or check must be delivered by the eligible
1072	nonprofit scholarship-funding organization to the private school
1073	of the parent's choice, and the parent shall restrictively
1074	endorse the warrant or check to the private school. An eligible
1075	nonprofit scholarship-funding organization shall ensure that the
1076	parent to whom the warrant or check is made restrictively
1077	endorsed the warrant or check to the private school for deposit
1078	into the account of the private school.
1079	(c)  An eligible nonprofit scholarship-funding organization
1080	shall obtain verification from the private school of a student's
1081	continued attendance at the school prior to each scholarship
1082	payment.
1083	(d)  Payment of the scholarship shall be made by the
1084	eligible nonprofit scholarship-funding organization no less
1085	frequently than on a quarterly basis.
1086	(12)(7)  ADMINISTRATION; RULES.--
1087	(a)  If the credit granted pursuant to this section is not
1088	fully used in any one year because of insufficient tax liability
1089	on the part of the corporation, the unused amount may be carried
1090	forward for a period not to exceed 3 years; however, any
1091	taxpayer that seeks to carry forward an unused amount of tax
1092	credit must submit an application for allocation of tax credits
1093	or carryforward credits as required in paragraph (d) in the year
1094	that the taxpayer intends to use the carryforward. The total
1095	amount of tax credits and carryforward of tax credits granted
1096	each state fiscal year under this section is $88 million. This
1097	carryforward applies to all approved contributions made after
1098	January 1, 2002. A taxpayer may not convey, assign, or transfer
1099	the credit authorized by this section to another entity unless
1100	all of the assets of the taxpayer are conveyed, assigned, or
1101	transferred in the same transaction.
1102	(b)  An application for a tax credit pursuant to this
1103	section shall be submitted to the department on forms
1104	established by rule of the department.
1105	(c)  The department and the Department of Education shall
1106	develop a cooperative agreement to assist in the administration
1107	of this section. The Department of Education shall be
1108	responsible for annually submitting, by March 15, to the
1109	department a list of eligible nonprofit scholarship-funding
1110	organizations that meet the requirements of paragraph (2)(d) and
1111	for monitoring eligibility of nonprofit scholarship-funding
1112	organizations that meet the requirements of paragraph (2)(d),
1113	eligibility of nonpublic schools that meet the requirements of
1114	paragraph (2)(c), and eligibility of expenditures under this
1115	section as provided in subsection (4).
1116	(d)  The department shall adopt rules necessary to
1117	administer this section, including rules establishing
1118	application forms and procedures and governing the allocation of
1119	tax credits and carryforward credits under this section on a
1120	first-come, first-served basis.
1121	(e)  The State Board Department of Education shall adopt
1122	rules pursuant to ss. 120.536(1) and 120.54 necessary to
1123	administer this section determine eligibility of nonprofit
1124	scholarship-funding organizations as defined in paragraph (2)(d)
1125	and according to the provisions of subsection (4) and identify
1126	qualified students as defined in paragraph (2)(e).
1127	(13)(8)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
1128	contributions received by an eligible nonprofit
1129	scholarship-funding organization shall be deposited in a manner
1130	consistent with s. 17.57(2).
1131	Section 3.  Section 1002.421, Florida Statutes, is created
1132	to read:
1133	1002.421  Rights and obligations of private schools
1134	participating in state school choice scholarship
1135	programs.--Requirements of this section are in addition to
1136	private school requirements outlined in s. 1002.42, specific
1137	requirements identified within respective scholarship program
1138	laws, and other provisions of Florida law that apply to private
1139	schools.
1140	(1)  A Florida private school participating in the
1141	Corporate Income Tax Credit Scholarship Program established
1142	pursuant to s. 220.187 or an educational scholarship program
1143	established pursuant to this chapter must comply with all
1144	requirements of this section.
1145	(2)  A private school participating in a scholarship
1146	program must be a Florida private school as defined in s.
1147	1002.01(2) and must:
1148	(a)  Be a registered Florida private school in accordance
1149	with s. 1002.42.
1150	(b)  Comply with antidiscrimination provisions of 42 U.S.C.
1151	s. 2000d.
1152	(c)  Notify the department of its intent to participate in
1153	a scholarship program.
1154	(d)  Notify the department of any change in the school's
1155	name, school director, mailing address, or physical location
1156	within 15 days after the change.
1157	(e)  Complete student enrollment and attendance
1158	verification requirements, including use of an on-line
1159	attendance verification form, prior to scholarship payment.
1160	(f)  Annually complete and submit to the department a
1161	notarized scholarship compliance statement certifying compliance
1162	with state laws relating to private school participation in the
1163	scholarship program.
1164	(g)  Demonstrate fiscal soundness and accountability by:
1165	1.  Being in operation for at least 3 school years or
1166	obtaining a surety bond or letter of credit for the amount equal
1167	to the scholarship funds for any quarter and filing the surety
1168	bond or letter of credit with the department.
1169	2.  Requiring the parent of each scholarship student to
1170	personally restrictively endorse the scholarship warrant to the
1171	school. The school may not act as attorney in fact for the
1172	parent of a scholarship student under the authority of a power
1173	of attorney executed by such parent, or under any other
1174	authority, to endorse scholarship warrants on behalf of such
1175	parent.
1176	(h)  Meet applicable state and local health, safety, and
1177	welfare laws, codes, and rules, including:
1178	1.  Fire safety.
1179	2.  Building safety.
1180	(i)  Employ or contract with teachers who hold
1181	baccalaureate or higher degrees, have at least 3 years of
1182	teaching experience in public or private schools, or have
1183	special skills, knowledge, or expertise that qualifies them to
1184	provide instruction in subjects taught.
1185	(j)  Require each individual with direct student contact
1186	with a scholarship student to be of good moral character, to be
1187	subject to the level 1 background screening as provided under
1188	chapter 435, to be denied employment or terminated if required
1189	under s. 435.06, and not to be ineligible to teach in a public
1190	school because his or her educator certificate is suspended or
1191	revoked. For purposes of this paragraph:
1192	1.  An "individual with direct student contact" means any
1193	individual who has unsupervised access to a scholarship student
1194	for whom the private school is responsible.
1195	2.  The costs of fingerprinting and the background check
1196	shall not be borne by the state.
1197	3.  Continued employment of an individual after
1198	notification that the individual has failed the level 1
1199	background screening shall cause a private school to be
1200	ineligible for participation in a scholarship program.
1201	4.  An individual holding a valid Florida teaching
1202	certificate who has been fingerprinted pursuant to s. 1012.32
1203	shall not be required to comply with the provisions of this
1204	paragraph.
1205	(3)  The inability of a private school to meet the
1206	requirements of this section shall constitute a basis for the
1207	ineligibility of the private school to participate in a
1208	scholarship program as determined by the department.
1209	(4)  The inclusion of eligible private schools within
1210	options available to Florida public school students does not
1211	expand the regulatory authority of the state, its officers, or
1212	any school district to impose any additional regulation of
1213	private schools beyond those reasonably necessary to enforce
1214	requirements expressly set forth in this section.
1215	(5)  The State Board of Education shall adopt rules
1216	pursuant to ss. 120.536(1) and 120.54 to administer this
1217	section.
1218	Section 4.  This act shall take effect upon becoming a law.

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