HB 1163

CS

CHAMBER ACTION

1	The Education Council recommends the following:
2
3	Council/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. 1002.39, F.S., relating to the John M. McKay
8	Scholarships for Students with Disabilities Program;
9	revising definition of the term "students with
10	disabilities"; revising student eligibility requirements
11	for receipt of a scholarship and restricting eligibility
12	therefor; providing for term of a scholarship; revising
13	and adding school district obligations and clarifying
14	parental options; revising and adding Department of
15	Education obligations, including verification of
16	eligibility of private schools and establishment of a
17	process for notification of violations, subsequent
18	investigation, and certification of compliance by private
19	schools; providing Commissioner of Education authority and
20	obligations, including the denial, suspension, or
21	revocation of a private school's participation in the
22	scholarship program and procedures and timelines therefor;
23	revising private school eligibility and obligations,
24	including compliance with specified laws and academic
25	accountability to the parent; revising parent and student
26	responsibilities for scholarship program participation;
27	prohibiting a private school from acting as attorney in
28	fact to sign a scholarship warrant; revising provisions
29	relating to scholarship funding and payment; providing
30	funding and payment requirements for former Florida School
31	for the Deaf and the Blind students and for students
32	exiting a Department of Juvenile Justice program;
33	providing Department of Financial Services obligations;
34	authorizing waiver of deadlines; providing scope of
35	authority; requiring adoption of rules; amending s.
36	220.187, F.S., relating to credits for contributions to
37	nonprofit scholarship-funding organizations; revising and
38	providing definitions; naming the scholarship program;
39	providing student eligibility requirements for receipt of
40	a corporate income tax credit scholarship and restricting
41	eligibility therefor; revising provisions relating to the
42	total amount of tax credits and carryforward of tax
43	credits and providing certain limitation; providing for
44	rescindment of tax credit allocation; revising and adding
45	obligations of eligible nonprofit scholarship-funding
46	organizations, including compliance with requirements for
47	background checks, scholarship-funding organization
48	ownership or operation, audits, and reports; requiring
49	certain information to remain confidential in accordance
50	with s. 213.053, F.S.; revising and adding parent and
51	student responsibilities for scholarship program
52	participation, including compliance with private school's
53	published policies, participation in student academic
54	assessment, and restrictive endorsement of scholarship
55	warrants or checks; prohibiting power of attorney for
56	endorsing a scholarship warrant or check; revising and
57	adding private school eligibility requirements and
58	obligations, including compliance with specified laws and
59	academic accountability to the parent; revising and adding
60	Department of Education obligations, including
61	verification of eligibility of program participants,
62	establishment of a process for notification of violations,
63	subsequent investigation, and certification of compliance
64	by private schools, and selection of a research
65	organization to analyze student performance data;
66	providing Commissioner of Education authority and
67	obligations, including the denial, suspension, or
68	revocation of a private school's participation in the
69	scholarship program and procedures and timelines therefor;
70	revising and adding provisions relating to scholarship
71	funding and payment, including the amount of a scholarship
72	and the payment process; requiring adoption of rules;
73	creating s. 1002.421, F.S., relating to rights and
74	obligations of private schools participating in state
75	school choice scholarship programs; providing requirements
76	for participation in a scholarship program, including
77	compliance with specified state, local, and federal laws
78	and demonstration of fiscal soundness; requiring
79	restrictive endorsement of checks and prohibiting a school
80	from acting as attorney in fact; requiring employment of
81	qualified teachers and background screening of individuals
82	with direct student contact; providing scope of authority;
83	requiring adoption of rules; providing an effective date.
84
85	Be It Enacted by the Legislature of the State of Florida:
86
87	Section 1.  Section 1002.39, Florida Statutes, is amended
88	to read:
89	1002.39  The John M. McKay Scholarships for Students with
90	Disabilities Program.--There is established a program that is
91	separate and distinct from the Opportunity Scholarship Program
92	and is named the John M. McKay Scholarships for Students with
93	Disabilities Program, pursuant to this section.
94	(1)  THE JOHN M. MCKAY SCHOLARSHIPS FOR STUDENTS WITH
95	DISABILITIES PROGRAM.--The John M. McKay Scholarships for
96	Students with Disabilities Program is established to provide the
97	option to attend a public school other than the one to which
98	assigned, or to provide a scholarship to a private school of
99	choice, for students with disabilities for whom an individual
100	education plan has been written in accordance with rules of the
101	State Board of Education. Students with disabilities include K-
102	12 students who are documented as having mental retardation; a
103	mentally handicapped, speech or and language impairment; a
104	impaired, deaf or hard of hearing impairment, including
105	deafness; a visual impairment, including blindness; a visually
106	impaired, dual sensory impairment; a physical impairment; a
107	serious emotional disturbance, including an emotional handicap;
108	a impaired, physically impaired, emotionally handicapped,
109	specific learning disability, including, but not limited to,
110	dyslexia, dyscalculia, or developmental aphasia; a traumatic
111	brain injury; disabled, hospitalized or homebound, or autism
112	autistic.
113	(2)  JOHN M. MCKAY SCHOLARSHIP ELIGIBILITY.--The parent of
114	a public school student with a disability who is dissatisfied
115	with the student's progress may request and receive from the
116	state a John M. McKay Scholarship for the child to enroll in and
117	attend a private school in accordance with this section if:
118	(a)  By assigned school attendance area or by special
119	assignment, The student has spent the prior school year in
120	attendance at a Florida public school or the Florida School for
121	the Deaf and the Blind. Prior school year in attendance means
122	that the student was:
123	1.  Enrolled and reported by a school district for funding
124	during the preceding October and February Florida Education
125	Finance Program surveys in kindergarten through grade 12, which
126	shall include time spent in a Department of Juvenile Justice
127	commitment program if funded under the Florida Education Finance
128	Program;
129	2.  Enrolled and reported by the Florida School for the
130	Deaf and the Blind during the preceding October and February
131	student membership surveys in kindergarten through grade 12; or
132	3.  Enrolled and reported by a school district for funding
133	during the preceding October and February Florida Education
134	Finance Program surveys, at least 4 years old when so enrolled
135	and reported, and eligible for services under s. 1003.21(1)(e).
136
137	However, this paragraph does not apply to a dependent child of a
138	member of the United States Armed Forces who transfers to a
139	school in this state from out of state or from a foreign country
140	pursuant to a parent's permanent change of station orders is
141	exempt from this paragraph but. A dependent child of a member of
142	the United States Armed Forces who transfers to a school in this
143	state from out of state or from a foreign country pursuant to a
144	parent's permanent change of station orders must meet all other
145	eligibility requirements to participate in the program.
146	(b)  The parent has obtained acceptance for admission of
147	the student to a private school that is eligible for the program
148	under subsection (8)(4) and has requested from the department
149	notified the school district of the request for a scholarship at
150	least 60 days prior to the date of the first scholarship
151	payment. The request parental notification must be through a
152	communication directly to the department district or through the
153	Department of Education to the district in a manner that creates
154	a written or electronic record of the request notification and
155	the date of receipt of the request notification.
156
157	This section does not apply to a student who is enrolled in a
158	school operating for the purpose of providing educational
159	services to youth in Department of Juvenile Justice commitment
160	programs. For purposes of continuity of educational choice, the
161	scholarship shall remain in force until the student returns to a
162	public school or graduates from high school. However, at any
163	time, the student's parent may remove the student from the
164	private school and place the student in another private school
165	that is eligible for the program under subsection (4) or in a
166	public school as provided in subsection (3).
167	(3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student is
168	not eligible for a John M. McKay Scholarship while he or she is:
169	(a)  Enrolled in a school operating for the purpose of
170	providing educational services to youth in Department of
171	Juvenile Justice commitment programs.
172	(b)  Receiving a corporate income tax credit scholarship
173	under s. 220.187.
174	(c)  Receiving an educational scholarship pursuant to this
175	chapter.
176	(d)  Participating in a home education program as defined
177	in s. 1002.01(1).
178	(e)  Participating in a private tutoring program pursuant
179	to s. 1002.43.
180	(f)  Participating in a virtual school, correspondence
181	school, or distance learning program that receives state funding
182	pursuant to the student's participation.
183	(g)  Enrolled in the Florida School for the Deaf and the
184	Blind.
185	(4)  TERM OF JOHN M. MCKAY SCHOLARSHIP.--
186	(a)  For purposes of continuity of educational choice, a
187	John M. McKay Scholarship shall remain in force until the
188	student returns to a public school, graduates from high school,
189	or reaches the age of 22, whichever occurs first.
190	(b)  Upon reasonable notice to the department and the
191	school district, the student's parent may remove the student
192	from the private school and place the student in a public
193	school, as provided in subparagraph (5)(a)2.
194	(c)  Upon reasonable notice to the department, the
195	student's parent may move the student from one participating
196	private school to another participating private school.
197	(5)(3)  SCHOOL DISTRICT AND DEPARTMENT OF EDUCATION
198	OBLIGATIONS; PARENTAL OPTIONS.--
199	(a)1.  By April 1 of each year and within 10 days after an
200	individual education plan meeting, a school district shall
201	timely notify the parent of the student of all options available
202	pursuant to this section, inform the parent of the availability
203	of the department's telephone hotline and Internet website for
204	additional information on John M. McKay Scholarships, and offer
205	that student's parent an opportunity to enroll the student in
206	another public school within the district.
207	2.  The parent is not required to accept the this offer of
208	enrolling in another public school in lieu of requesting a John
209	M. McKay Scholarship to a private school. However, if the parent
210	chooses the public school option, the student may continue
211	attending a public school chosen by the parent until the student
212	graduates from high school.
213	3.  If the parent chooses a public school consistent with
214	the district school board's choice plan under s. 1002.31, the
215	school district shall provide transportation to the public
216	school selected by the parent. The parent is responsible to
217	provide transportation to a public school chosen that is not
218	consistent with the district school board's choice plan under s.
219	1002.31.
220	(b)1.  For a student with disabilities who does not have a
221	matrix of services under s. 1011.62(1)(e), the school district
222	must complete a matrix that assigns the student to one of the
223	levels of service as they existed prior to the 2000-2001 school
224	year.
225	2.a.  Within 10 school days after it receives notification
226	of a parent's request for a John M. McKay Scholarship, a
227	district school board must notify the student's parent if the
228	matrix has not been completed and inform the parent that the
229	district is required to complete the matrix within 30 days after
230	receiving notice of the parent's request for a John M. McKay
231	Scholarship. This notice should include the required completion
232	date for the matrix.
233	b.  The school district must complete the matrix of
234	services for any student who is participating in the John M.
235	McKay Scholarships for Students with Disabilities Program and
236	must notify the department of Education of the student's matrix
237	level within 30 days after receiving notification of a request
238	by the student's parent of intent to participate in the
239	scholarship program. The school district must provide the
240	student's parent with the student's matrix level within 10
241	school days after its completion.
242	c.  The department of Education shall notify the private
243	school of the amount of the scholarship within 10 days after
244	receiving the school district's notification of the student's
245	matrix level. Within 10 school days after it receives
246	notification of a parent's intent to apply for a McKay
247	Scholarship, a district school board must notify the student's
248	parent if the matrix has not been completed and provide the
249	parent with the date for completion of the matrix required in
250	this paragraph.
251	d.  A school district may change a matrix of services only
252	if the change is to correct a technical, typographical, or
253	calculation error.
254	(c)  A school district shall provide notification to
255	parents of the availability of a reevaluation at least every 3
256	years of each student who receives a John M. McKay Scholarship.
257	(d)(c)  If the parent chooses the private school option and
258	the student is accepted by the private school pending the
259	availability of a space for the student, the parent of the
260	student must notify the department school district 60 days prior
261	to the first scholarship payment and before entering the private
262	school in order to be eligible for the scholarship when a space
263	becomes available for the student in the private school.
264	(e)(d)  The parent of a student may choose, as an
265	alternative, to enroll the student in and transport the student
266	to a public school in an adjacent school district which has
267	available space and has a program with the services agreed to in
268	the student's individual education plan already in place, and
269	that school district shall accept the student and report the
270	student for purposes of the district's funding pursuant to the
271	Florida Education Finance Program.
272	(f)(e)  For a student in the district who participates in
273	the John M. McKay Scholarships for Students with Disabilities
274	Program whose parent requests that the student take the
275	statewide assessments under s. 1008.22, the district shall
276	provide locations and times to take all statewide assessments.
277	(f)  A school district must notify the Department of
278	Education within 10 days after it receives notification of a
279	parent's intent to apply for a scholarship for a student with a
280	disability. A school district must provide the student's parent
281	with the student's matrix level within 10 school days after its
282	completion.
283	(6)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The department
284	shall:
285	(a)  Establish a toll-free hotline that provides parents
286	and private schools with information on participation in the
287	John M. McKay Scholarships for Students with Disabilities
288	Program.
289	(b)  Annually verify the eligibility of private schools
290	that meet the requirements of subsection (8).
291	(c)  Establish a process by which individuals may notify
292	the department of any violation by a parent, private school, or
293	school district of state laws relating to program participation.
294	The department shall conduct an investigation of any written
295	complaint of a violation of this section, or make a referral to
296	the appropriate agency for an investigation, if the complaint is
297	signed by the complainant and is legally sufficient. A complaint
298	is legally sufficient if it contains ultimate facts that show
299	that a violation of this section or any rule adopted by the
300	State Board of Education has occurred. In order to determine
301	legal sufficiency, the department may require supporting
302	information or documentation from the complainant.
303	(d)  Require an annual, notarized, sworn compliance
304	statement by participating private schools certifying compliance
305	with state laws and shall retain such records.
306	(e)  Cross-check the list of participating scholarship
307	students with the public school enrollment lists prior to the
308	first scholarship payment to avoid duplication.
309	(7)  COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.--
310	(a)  The Commissioner of Education shall deny, suspend, or
311	revoke a private school's participation in the scholarship
312	program if it is determined that the private school has failed
313	to comply with the provisions of this section. However, in
314	instances in which the noncompliance is correctable within a
315	reasonable amount of time and in which the health, safety, and
316	welfare of the students are not threatened, the commissioner may
317	issue a notice of noncompliance which shall provide the private
318	school with a timeframe within which to provide evidence of
319	compliance prior to taking action to suspend or revoke the
320	private school's participation in the scholarship program.
321	(b)  The commissioner's determination is subject to the
322	following:
323	1.  If the commissioner intends to deny, suspend, or revoke
324	a private school's participation in the scholarship program, the
325	department shall notify the private school of such proposed
326	action in writing by certified mail and regular mail to the
327	private school's address of record with the department. The
328	notification shall include the reasons for the proposed action
329	and notice of the timelines and procedures set forth in this
330	paragraph.
331	2.  The private school that is adversely affected by the
332	proposed action shall have 15 days from receipt of the notice of
333	proposed action to file with the department's agency clerk a
334	request for a proceeding pursuant to ss. 120.569 and 120.57. If
335	the private school is entitled to a hearing under s. 120.57(1),
336	the department shall forward the request to the Division of
337	Administrative Hearings.
338	3.  Upon receipt of a request referred pursuant to this
339	paragraph, the director of the Division of Administrative
340	Hearings shall expedite the hearing and assign an administrative
341	law judge who shall commence a hearing within 30 days after the
342	receipt of the formal written request by the division and enter
343	a recommended order within 30 days after the hearing or within
344	30 days after receipt of the hearing transcript, whichever is
345	later. Each party shall be allowed 10 days in which to submit
346	written exceptions to the recommended order. A final order shall
347	be entered by the agency within 30 days after the entry of a
348	recommended order. The provisions of this subparagraph may be
349	waived upon stipulation by all parties.
350	(c)  The commissioner may immediately suspend payment of
351	scholarship funds if it is determined that there is probable
352	cause to believe that there is:
353	1.  An imminent threat to the health, safety, and welfare
354	of the students; or
355	2.  Fraudulent activity on the part of the private school.
356
357	The commissioner's order suspending payment pursuant to this
358	paragraph may be appealed pursuant to the same procedures and
359	timelines as the notice of proposed action set forth in
360	paragraph (b).
361	(8)(4)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--To be
362	eligible to participate in the John M. McKay Scholarships for
363	Students with Disabilities Program, a private school must be a
364	Florida private school, may be sectarian or nonsectarian, and
365	must:
366	(a)  Comply with all requirements for private schools
367	participating in state school choice scholarship programs
368	pursuant to s. 1002.421.
369	(b)  Provide the department all documentation required for
370	a student's participation, including the private school's and
371	student's fee schedules, at least 30 days before the first
372	quarterly scholarship payment is made for the student.
373	(c)  Be academically accountable to the parent for meeting
374	the educational needs of the student by:
375	1.  At a minimum, annually providing to the parent a
376	written explanation of the student's progress.
377	2.  Cooperating with the scholarship student whose parent
378	chooses to participate in the statewide assessments pursuant to
379	s. 1008.22.
380
381	The inability of a private school to meet the requirements of
382	this subsection shall constitute a basis for the ineligibility
383	of the private school to participate in the scholarship program
384	as determined by the department.
385	(a)  Demonstrate fiscal soundness by being in operation for
386	1 school year or provide the Department of Education with a
387	statement by a certified public accountant confirming that the
388	private school desiring to participate is insured and the owner
389	or owners have sufficient capital or credit to operate the
390	school for the upcoming year serving the number of students
391	anticipated with expected revenues from tuition and other
392	sources that may be reasonably expected. In lieu of such a
393	statement, a surety bond or letter of credit for the amount
394	equal to the scholarship funds for any quarter may be filed with
395	the department.
396	(b)  Notify the Department of Education of its intent to
397	participate in the program under this section. The notice must
398	specify the grade levels and services that the private school
399	has available for students with disabilities who are
400	participating in the scholarship program.
401	(c)  Comply with the antidiscrimination provisions of 42
402	U.S.C. s. 2000d.
403	(d)  Meet state and local health and safety laws and codes.
404	(e)  Be academically accountable to the parent for meeting
405	the educational needs of the student.
406	(f)  Employ or contract with teachers who hold
407	baccalaureate or higher degrees, or have at least 3 years of
408	teaching experience in public or private schools, or have
409	special skills, knowledge, or expertise that qualifies them to
410	provide instruction in subjects taught.
411	(g)  Comply with all state laws relating to general
412	regulation of private schools.
413	(h)  Adhere to the tenets of its published disciplinary
414	procedures prior to the expulsion of a scholarship student.
415	(9)(5)  PARENT AND STUDENT RESPONSIBILITIES FOR OBLIGATION
416	OF PROGRAM PARTICIPATION PARTICIPANTS.--A parent who applies for
417	a John M. McKay Scholarship is exercising his or her parental
418	option to place his or her child in a private school.
419	(a)  A parent who applies for a John M. McKay Scholarship
420	is exercising his or her parental option to place his or her
421	child in a private school. The parent must select the private
422	school and apply for the admission of his or her child.
423	(b)  The parent must have requested the scholarship at
424	least 60 days prior to the date of the first scholarship
425	payment.
426	(c)  Any student participating in the John M. McKay
427	Scholarships for Students with Disabilities scholarship Program
428	must remain in attendance throughout the school year, unless
429	excused by the school for illness or other good cause, and must
430	comply fully with the school's code of conduct.
431	(d)  Each The parent and of each student has an obligation
432	to the private school to participating in the scholarship
433	program must comply fully with the private school's published
434	policies parental involvement requirements, unless excused by
435	the school for illness or other good cause.
436	(e)  If the parent requests that the student participating
437	in the John M. McKay Scholarships for Students with Disabilities
438	scholarship Program take all statewide assessments required
439	pursuant to s. 1008.22, the parent is responsible for
440	transporting the student to the assessment site designated by
441	the school district.
442	(f)  Upon receipt of a scholarship warrant, the parent to
443	whom the warrant is made must restrictively endorse the warrant
444	to the private school for deposit into the account of the
445	private school. The parent may not designate any entity or
446	individual associated with the participating private school as
447	the parent's attorney in fact to sign a scholarship warrant. A
448	participant who fails to comply with this paragraph forfeits the
449	scholarship.
450	(g)  A participant who fails to comply with this subsection
451	forfeits the scholarship.
452	(10)(6)  JOHN M. MCKAY SCHOLARSHIP FUNDING AND PAYMENT.--
453	(a)1.  The maximum scholarship granted for an eligible
454	student with disabilities shall be a calculated amount
455	equivalent to the base student allocation in the Florida
456	Education Finance Program multiplied by the appropriate cost
457	factor for the educational program that would have been provided
458	for the student in the district school to which he or she was
459	assigned, multiplied by the district cost differential.
460	2.  In addition, a share of the guaranteed allocation for
461	exceptional students shall be determined and added to the
462	calculated amount. The calculation shall be based on the
463	methodology and the data used to calculate the guaranteed
464	allocation for exceptional students for each district in chapter
465	2000-166, Laws of Florida. Except as provided in subparagraphs
466	subparagraph 3. and 4., the calculation shall be based on the
467	student's grade, matrix level of services, and the difference
468	between the 2000-2001 basic program and the appropriate level of
469	services cost factor, multiplied by the 2000-2001 base student
470	allocation and the 2000-2001 district cost differential for the
471	sending district. Also, the calculated amount shall include the
472	per-student share of supplemental academic instruction funds,
473	instructional materials funds, technology funds, and other
474	categorical funds as provided for such purposes in the General
475	Appropriations Act.
476	3.  The calculated scholarship amount for a student who has
477	spent the prior school year in attendance at the Florida School
478	for the Deaf and the Blind shall be calculated as provided in
479	subparagraphs 1. and 2. However, the calculation shall be based
480	on the school district in which the parent resides at the time
481	of the scholarship request.
482	4.3.  Until the school district completes the matrix
483	required by paragraph (5)(3)(b), the calculation shall be based
484	on the matrix that assigns the student to support level I of
485	service as it existed prior to the 2000-2001 school year. When
486	the school district completes the matrix, the amount of the
487	payment shall be adjusted as needed.
488	(b)  The amount of the John M. McKay Scholarship shall be
489	the calculated amount or the amount of the private school's
490	tuition and fees, whichever is less. The amount of any
491	assessment fee required by the participating private school may
492	be paid from the total amount of the scholarship.
493	(c)  If the participating private school requires partial
494	payment of tuition prior to the start of the academic year to
495	reserve space for students admitted to the school, that partial
496	payment may be paid by the Department of Education prior to the
497	first quarterly payment of the year in which the John M. McKay
498	Scholarship is awarded, up to a maximum of $1,000, and deducted
499	from subsequent scholarship payments. If a student decides not
500	to attend the participating private school, the partial
501	reservation payment must be returned to the Department of
502	Education by the participating private school. There is a limit
503	of one reservation payment per student per year.
504	(c)1.(d)  The school district shall report all students who
505	are attending a private school under this program. The students
506	with disabilities attending private schools on John M. McKay
507	Scholarships shall be reported separately from other students
508	reported for purposes of the Florida Education Finance Program.
509	2.  For program participants who are eligible under
510	subparagraph (2)(a)2., the school district that is used as the
511	basis for the calculation of the scholarship amount as provided
512	in subparagraph (a)3. shall:
513	a.  Report to the department all such students who are
514	attending a private school under this program.
515	b.  Be held harmless for such students from the weighted
516	enrollment ceiling for group 2 programs in s. 1011.62(1)(d)3.a.
517	during the first school year in which the students are reported.
518	(d)(e)  Following notification on July 1, September 1,
519	December 1, or February 1 of the number of program participants,
520	the department of Education shall transfer, from General Revenue
521	funds only, the amount calculated under paragraph (b) from the
522	school district's total funding entitlement under the Florida
523	Education Finance Program and from authorized categorical
524	accounts to a separate account for the scholarship program for
525	quarterly disbursement to the parents of participating students.
526	Funds may not be transferred from any funding provided to the
527	Florida School for the Deaf and the Blind for program
528	participants who are eligible under subparagraph (2)(a)2. For a
529	student exiting a Department of Juvenile Justice commitment
530	program who chooses to participate in the scholarship program,
531	the amount of the John M. McKay Scholarship calculated pursuant
532	to paragraph (b) shall be transferred from the school district
533	in which the student last attended a public school prior to
534	commitment to the Department of Juvenile Justice. When a student
535	enters the scholarship program, the department of Education must
536	receive all documentation required for the student's
537	participation, including the private school's and student's fee
538	schedules, at least 30 days before the first quarterly
539	scholarship payment is made for the student. The Department of
540	Education may not make any retroactive payments.
541	(e)(f)  Upon notification proper documentation reviewed and
542	approved by the department that it has received the
543	documentation required under paragraph (d) Department of
544	Education, the Chief Financial Officer shall make scholarship
545	payments in four equal amounts no later than September 1,
546	November 1, February 1, and April 1 15 of each academic year in
547	which the scholarship is in force. The initial payment shall be
548	made after department of Education verification of admission
549	acceptance, and subsequent payments shall be made upon
550	verification of continued enrollment and attendance at the
551	private school. Payment must be by individual warrant made
552	payable to the student's parent and mailed by the department of
553	Education to the private school of the parent's choice, and the
554	parent shall restrictively endorse the warrant to the private
555	school for deposit into the account of the private school.
556	(f)  Subsequent to each scholarship payment, the Department
557	of Financial Services shall randomly review endorsed warrants to
558	confirm compliance with endorsement requirements. The Department
559	of Financial Services shall immediately report inconsistencies
560	or irregularities to the department.
561	(11)(7)  LIABILITY.--No liability shall arise on the part
562	of the state based on the award or use of a John M. McKay
563	Scholarship.
564	(12)  WAIVER.--For good cause, the State Board of Education
565	shall have the authority to waive any deadlines to effectuate
566	the purposes of the scholarship program.
567	(13)  SCOPE OF AUTHORITY.--The inclusion of eligible
568	private schools within options available to Florida public
569	school students does not expand the regulatory authority of the
570	state, its officers, or any school district to impose any
571	additional regulation of private schools beyond those reasonably
572	necessary to enforce requirements expressly set forth in this
573	section.
574	(14)(8)  RULES.--The State Board of Education shall adopt
575	rules pursuant to ss. 120.536(1) and 120.54 to administer this
576	section, including rules that school districts must use to
577	expedite the development of a matrix of services based on an
578	active a current individual education plan from another state or
579	a foreign country for a transferring student with a disability
580	who is a dependent child of a member of the United States Armed
581	Forces. The rules must identify the appropriate school district
582	personnel who must complete the matrix of services. For purposes
583	of these rules, a transferring student with a disability is one
584	who was previously enrolled as a student with a disability in an
585	out-of-state or an out-of-country public or private school or
586	agency program and who is transferring from out of state or from
587	a foreign country pursuant to a parent's permanent change of
588	station orders. However, the inclusion of eligible private
589	schools within options available to Florida public school
590	students does not expand the regulatory authority of the state,
591	its officers, or any school district to impose any additional
592	regulation of private schools beyond those reasonably necessary
593	to enforce requirements expressly set forth in this section.
594	Section 2.  Section 220.187, Florida Statutes, is amended
595	to read:
596	220.187  Credits for contributions to nonprofit
597	scholarship-funding organizations.--
598	(1)  PURPOSE.--The purpose of this section is to:
599	(a)  Encourage private, voluntary contributions to
600	nonprofit scholarship-funding organizations.
601	(b)  Expand educational opportunities for children of
602	families that have limited financial resources.
603	(c)  Enable children in this state to achieve a greater
604	level of excellence in their education.
605	(2)  DEFINITIONS.--As used in this section, the term:
606	(a)  "Department" means the Department of Revenue.
607	(b)  "Eligible contribution" means a monetary contribution
608	from a taxpayer, subject to the restrictions provided in this
609	section, to an eligible nonprofit scholarship-funding
610	organization. The taxpayer making the contribution may not
611	designate a specific child as the beneficiary of the
612	contribution. The taxpayer may not contribute more than $5
613	million to any single eligible nonprofit scholarship-funding
614	organization.
615	(c)(d)  "Eligible nonprofit scholarship-funding
616	organization" means a charitable organization that:
617	1.  Is exempt from federal income tax pursuant to s.
618	501(c)(3) of the Internal Revenue Code.
619	2.  Is a Florida entity formed under chapter 607, chapter
620	608, or chapter 617 and whose principal office is located in the
621	state.
622	3.  and that Complies with the provisions of subsection
623	(6)(4).
624	(d)(c)  "Eligible private nonpublic school" means a private
625	nonpublic school, as defined in s. 1002.01(2), located in
626	Florida that offers an education to students in any grades K-12
627	and that meets the requirements in subsection (8)(6).
628	(e)  "Owner or operator" includes:
629	1.  An owner, president, officer, or director of an
630	eligible nonprofit scholarship-funding organization or a person
631	with equivalent decisionmaking authority over an eligible
632	nonprofit scholarship-funding organization.
633	2.  An owner, operator, superintendent, or principal of an
634	eligible private school or a person with equivalent
635	decisionmaking authority over an eligible private school.
636	(e)  "Qualified student" means a student who qualifies for
637	free or reduced-price school lunches under the National School
638	Lunch Act and who:
639	(3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
640	Income Tax Credit Scholarship Program is established. A student
641	is eligible for a corporate income tax credit scholarship if the
642	student qualifies for free or reduced-price school lunches under
643	the National School Lunch Act and:
644	(a)1.  Was counted as a full-time equivalent student during
645	the previous state fiscal year for purposes of state per-student
646	funding;
647	(b)2.  Received a scholarship from an eligible nonprofit
648	scholarship-funding organization during the previous school
649	year; or
650	(c)3.  Is eligible to enter kindergarten or first grade.
651
652	A student may continue in the scholarship program as long as the
653	family income level does not exceed 200 percent of the federal
654	poverty level.
655	(4)  SCHOLARSHIP PROHIBITIONS.--A student is not eligible
656	for a scholarship while he or she is:
657	(a)  Enrolled in a school operating for the purpose of
658	providing educational services to youth in Department of
659	Juvenile Justice commitment programs.
660	(b)  Receiving a scholarship from another eligible
661	nonprofit scholarship-funding organization under this section.
662	(c)  Receiving an educational scholarship pursuant to
663	chapter 1002.
664	(d)  Participating in a home education program as defined
665	in s. 1002.01(1).
666	(e)  Participating in a private tutoring program pursuant
667	to s. 1002.43.
668	(f)  Participating in a virtual school, correspondence
669	school, or distance learning program that receives state funding
670	pursuant to the student's participation.
671	(g)  Enrolled in the Florida School for the Deaf and the
672	Blind.
673	(5)(3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
674	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
675	(a)  There is allowed a credit of 100 percent of an
676	eligible contribution against any tax due for a taxable year
677	under this chapter. However, such a credit may not exceed 75
678	percent of the tax due under this chapter for the taxable year,
679	after the application of any other allowable credits by the
680	taxpayer. However, at least 5 percent of the total statewide
681	amount authorized for the tax credit shall be reserved for
682	taxpayers who meet the definition of a small business provided
683	in s. 288.703(1) at the time of application. The credit granted
684	by this section shall be reduced by the difference between the
685	amount of federal corporate income tax taking into account the
686	credit granted by this section and the amount of federal
687	corporate income tax without application of the credit granted
688	by this section.
689	(b)  The total amount of tax credits and carryforward of
690	tax credits which may be granted each state fiscal year under
691	this section is $88 million during the 2005-2006 fiscal year.
692	The total amount of tax credits and carryforward of tax credits
693	which may be granted under this section shall be adjusted each
694	year by the same percentage as the increase or decrease in total
695	funding, adjusted for Florida Retirement System changes if
696	applicable, under the Florida Education Finance Program as
697	provided in the General Appropriations Act workpapers. However,
698	the total amount of tax credits that may be granted pursuant to
699	this paragraph may not increase by more than 5 percent in any
700	year. The Commissioner of Education shall certify to the
701	department and notify eligible nonprofit scholarship-funding
702	organizations of the resulting value of tax credits that may be
703	granted within 30 days after the General Appropriations Act
704	becomes law. However, at least 1 percent of the total statewide
705	amount authorized for the tax credit shall be reserved for
706	taxpayers who meet the definition of a small business provided
707	in s. 288.703(1) at the time of application.
708	(c)  A taxpayer who files a Florida consolidated return as
709	a member of an affiliated group pursuant to s. 220.131(1) may be
710	allowed the credit on a consolidated return basis; however, the
711	total credit taken by the affiliated group is subject to the
712	limitation established under paragraph (a).
713	(d)  Effective for tax years beginning January 1, 2005, a
714	taxpayer may rescind all or part of its allocated tax credit
715	under this section. The amount rescinded shall become available
716	for purposes of the cap for that state fiscal year under this
717	section to an eligible taxpayer as approved by the department if
718	the taxpayer receives notice from the department that the
719	rescindment has been accepted by the department and the taxpayer
720	has not previously rescinded any or all of its tax credit
721	allocation under this section more than once in the previous 3
722	tax years. Any amount rescinded under this paragraph shall
723	become available to an eligible taxpayer on a first-come, first-
724	served basis based on tax credit applications received after the
725	date the rescindment is accepted by the department.
726	(6)(4)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-
727	FUNDING ORGANIZATIONS.--An eligible nonprofit scholarship-
728	scholarship-funding organization:
729	(a)  Must comply with the antidiscrimination provisions of
730	42 U.S.C. s. 2000d.
731	(b)  Must comply with the following background check
732	requirements:
733	1.  An owner or operator of an eligible nonprofit
734	scholarship-funding organization is subject to level 1
735	background screening as provided under chapter 435.
736	2.  A nonprofit scholarship-funding organization whose
737	owner or operator fails the level 1 background screening shall
738	not be eligible to provide scholarships under this section.
739	3.  A nonprofit scholarship-funding organization whose
740	owner or operator in the last 7 years has filed for personal
741	bankruptcy or corporate bankruptcy in a corporation of which he
742	or she owned more than 20 percent shall not be eligible to
743	provide scholarships under this section.
744	(c)  Must not have an owner or operator who owns or
745	operates an eligible private school that is participating in the
746	scholarship program.
747	(d)(a)  Must An eligible nonprofit scholarship-funding
748	organization shall provide scholarships, from eligible
749	contributions, to eligible qualified students for:
750	1.  Tuition or textbook expenses for, or transportation to,
751	an eligible private nonpublic school. At least 75 percent of the
752	scholarship funding must be used to pay tuition expenses; or
753	2.  Transportation expenses to a Florida public school that
754	is located outside the district in which the student resides or
755	to a lab school as defined in s. 1002.32.
756	(e)(b)  Must An eligible nonprofit scholarship-funding
757	organization shall give priority to eligible qualified students
758	who received a scholarship from an eligible nonprofit
759	scholarship-funding organization during the previous school
760	year.
761	(f)  Must provide a scholarship to an eligible student on a
762	first-come, first-served basis unless the student qualifies for
763	priority pursuant to paragraph (e).
764	(g)  May not restrict or reserve scholarships for use at a
765	particular private school or provide scholarships to a child of
766	an owner or operator.
767	(h)  Must allow an eligible student to attend any eligible
768	private school and must allow a parent to transfer a scholarship
769	during a school year to any other eligible private school of the
770	parent's choice.
771	(c)  The amount of a scholarship provided to any child for
772	any single school year by all eligible nonprofit scholarship-
773	funding organizations from eligible contributions shall not
774	exceed the following annual limits:
775	1.  Three thousand five hundred dollars for a scholarship
776	awarded to a student enrolled in an eligible nonpublic school.
777	2.  Five hundred dollars for a scholarship awarded to a
778	student enrolled in a Florida public school that is located
779	outside the district in which the student resides.
780	(d)  The amount of an eligible contribution which may be
781	accepted by an eligible nonprofit scholarship-funding
782	organization is limited to the amount needed to provide
783	scholarships for qualified students which the organization has
784	identified and for which vacancies in eligible nonpublic schools
785	have been identified.
786	(i)(e)  Must obligate An eligible nonprofit scholarship-
787	funding organization that receives an eligible contribution must
788	spend 100 percent of the eligible contribution to provide
789	scholarships in the same state fiscal year in which the
790	contribution was received. No portion of eligible contributions
791	may be used for administrative expenses. All interest accrued
792	from contributions must be used for scholarships.
793	(j)  Must maintain separate accounts for scholarship funds
794	and operating funds.
795	(k)  May transfer funds to another eligible nonprofit
796	scholarship-funding organization when additional funds are
797	required to meet scholarship demand.
798	(l)  May obtain a secured line of credit to fund
799	scholarship payments based on estimated contributions to be
800	received within a 6-month period. These funds may only be used
801	to provide scholarship payments. Interest and fees related to
802	the line of credit shall be paid from the eligible nonprofit
803	scholarship-funding organization's operating budget and not from
804	contributions or loan proceeds.
805	(m)(f)  Must An eligible nonprofit scholarship-funding
806	organization that receives eligible contributions must provide
807	to the Auditor General and the Department of Education an annual
808	financial and compliance audit of its accounts and records
809	conducted by an independent certified public accountant and in
810	accordance with rules adopted by the Auditor General. The audit
811	must be conducted in compliance with generally accepted auditing
812	standards and must include a report on financial statements
813	presented in accordance with generally accepted accounting
814	principles set forth by the American Institute of Certified
815	Public Accountants for not-for-profit organizations and a
816	determination of compliance with the statutory eligibility and
817	expenditure requirements set forth in this section. Audits must
818	be provided to the Auditor General and the Department of
819	Education within 180 days after completion of the eligible
820	nonprofit scholarship-funding organization's fiscal year.
821	(n)  Must prepare and submit quarterly reports to the
822	Department of Education pursuant to paragraph (9)(m). In
823	addition, an eligible nonprofit scholarship-funding organization
824	must submit in a timely manner any information requested by the
825	Department of Education relating to the scholarship program.
826
827	Any and all information and documentation provided to the
828	Department of Education and the Auditor General relating to the
829	identity of a taxpayer that provides an eligible contribution
830	under this section shall remain confidential at all times in
831	accordance with s. 213.053.
832	(g)  Payment of the scholarship by the eligible nonprofit
833	scholarship-funding organization shall be by individual warrant
834	or check made payable to the student's parent. If the parent
835	chooses for his or her child to attend an eligible nonpublic
836	school, the warrant or check must be mailed by the eligible
837	nonprofit scholarship-funding organization to the nonpublic
838	school of the parent's choice, and the parent shall
839	restrictively endorse the warrant or check to the nonpublic
840	school. An eligible nonprofit scholarship-funding organization
841	shall ensure that, upon receipt of a scholarship warrant or
842	check, the parent to whom the warrant or check is made
843	restrictively endorses the warrant or check to the nonpublic
844	school of the parent's choice for deposit into the account of
845	the nonpublic school.
846	(7)(5)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
847	PARTICIPATION OBLIGATIONS.--As a condition for scholarship
848	payment pursuant to paragraph (4)(g), if the parent chooses for
849	his or her child to attend an eligible nonpublic school, the
850	parent must inform the child's school district within 15 days
851	after such decision.
852	(a)  The parent must select an eligible private school and
853	apply for the admission of his or her child.
854	(b)  The parent must inform the child's school district
855	when the parent withdraws his or her child to attend an eligible
856	private school.
857	(c)  Any student participating in the scholarship program
858	must remain in attendance throughout the school year, unless
859	excused by the school for illness or other good cause.
860	(d)  Each parent and each student has an obligation to the
861	private school to comply with the private school's published
862	policies.
863	(e)  The parent shall ensure that the student participating
864	in the scholarship program takes the norm-referenced assessment
865	offered by the private school. The parent may also choose to
866	have the student participate in the statewide assessments
867	pursuant to s. 1008.22. If the parent requests that the student
868	participating in the scholarship program take statewide
869	assessments pursuant to s. 1008.22, the parent is responsible
870	for transporting the student to the assessment site designated
871	by the school district.
872	(f)  Upon receipt of a scholarship warrant or check from
873	the eligible nonprofit scholarship-funding organization, the
874	parent to whom the warrant or check is made must restrictively
875	endorse the warrant or check to the private school for deposit
876	into the account of the private school. The parent may not
877	designate any entity or individual associated with the
878	participating private school as the parent's attorney in fact to
879	sign a scholarship warrant or check. A participant who fails to
880	comply with this paragraph forfeits the scholarship.
881	(8)(6)  PRIVATE ELIGIBLE NONPUBLIC SCHOOL ELIGIBILITY AND
882	OBLIGATIONS.--An eligible private nonpublic school may be
883	sectarian or nonsectarian and must:
884	(a)  Comply with all requirements for private schools
885	participating in state school choice scholarship programs
886	pursuant to s. 1002.421.
887	(b)  Provide to the eligible nonprofit scholarship-funding
888	organization, upon request, all documentation required for the
889	student's participation, including the private school's and
890	student's fee schedules.
891	(c)  Be academically accountable to the parent for meeting
892	the educational needs of the student by:
893	1.  At a minimum, annually providing to the parent a
894	written explanation of the student's progress.
895	2.  Annually administering or making provision for students
896	participating in the scholarship program to take one of the
897	nationally norm-referenced tests identified by the Department of
898	Education. Students with disabilities for whom standardized
899	testing is not appropriate are exempt from this requirement. A
900	participating private school must report a student's scores to
901	the parent and to the independent private research organization
902	selected by the Department of Education pursuant to paragraph
903	(9)(j).
904	3.  Cooperating with the scholarship student whose parent
905	chooses to participate in the statewide assessments pursuant to
906	s. 1008.32.
907
908	The inability of a private school to meet the requirements of
909	this subsection shall constitute a basis for the ineligibility
910	of the private school to participate in the scholarship program
911	as determined by the Department of Education.
912	(a)  Demonstrate fiscal soundness by being in operation for
913	one school year or provide the Department of Education with a
914	statement by a certified public accountant confirming that the
915	nonpublic school desiring to participate is insured and the
916	owner or owners have sufficient capital or credit to operate the
917	school for the upcoming year serving the number of students
918	anticipated with expected revenues from tuition and other
919	sources that may be reasonably expected. In lieu of such a
920	statement, a surety bond or letter of credit for the amount
921	equal to the scholarship funds for any quarter may be filed with
922	the department.
923	(b)  Comply with the antidiscrimination provisions of 42
924	U.S.C. s. 2000d.
925	(c)  Meet state and local health and safety laws and codes.
926	(d)  Comply with all state laws relating to general
927	regulation of nonpublic schools.
928	(9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The Department
929	of Education shall:
930	(a)  Annually submit to the department, by March 15, a list
931	of eligible nonprofit scholarship-funding organizations that
932	meet the requirements of paragraph (2)(c).
933	(b)  Annually verify the eligibility of nonprofit
934	scholarship-funding organizations that meet the requirements of
935	paragraph (2)(c).
936	(c)  Annually verify the eligibility of private schools
937	that meet the requirements of subsection (8).
938	(d)  Annually verify the eligibility of expenditures as
939	provided in paragraph (6)(d) using the audit required by
940	paragraph (6)(m).
941	(e)  Establish a toll-free hotline that provides parents
942	and private schools with information on participation in the
943	scholarship program.
944	(f)  Establish a process by which individuals may notify
945	the Department of Education of any violation by a parent,
946	private school, or school district of state laws relating to
947	program participation. The Department of Education shall conduct
948	an investigation of any written complaint of a violation of this
949	section, or make a referral to the appropriate agency for an
950	investigation, if the complaint is signed by the complainant and
951	is legally sufficient. A complaint is legally sufficient if it
952	contains ultimate facts that show that a violation of this
953	section or any rule adopted by the State Board of Education has
954	occurred. In order to determine legal sufficiency, the
955	Department of Education may require supporting information or
956	documentation from the complainant.
957	(g)  Require an annual, notarized, sworn compliance
958	statement by participating private schools certifying compliance
959	with state laws and shall retain such records.
960	(h)  Cross-check the list of participating scholarship
961	students with the public school enrollment lists to avoid
962	duplication.
963	(i)  Identify all nationally norm-referenced tests that are
964	comparable to the norm-referenced test portions of the Florida
965	Comprehensive Assessment Test (FCAT).
966	(j)  Select an independent private research organization to
967	which participating private schools must report the scores of
968	participating students on the nationally norm-referenced tests
969	administered by the private school. The independent private
970	research organization must annually report to the Department of
971	Education on the year-to-year improvements of participating
972	students. The independent private research organization must
973	analyze and report student performance data in a manner that
974	protects the rights of students and parents as mandated in 20
975	U.S.C. s. 1232g, the Family Educational Rights and Privacy Act,
976	and must not disaggregate data to a level that will disclose the
977	academic level of individual students or of individual schools.
978	To the extent possible, the independent private research
979	organization must accumulate historical performance data on
980	students from the Department of Education and private schools to
981	describe baseline performance and to conduct longitudinal
982	studies. To minimize costs and reduce time required for third-
983	party analysis and evaluation, the Department of Education shall
984	conduct analyses of matched students from public school
985	assessment data and calculate control group learning gains using
986	an agreed-upon methodology outlined in the contract with the
987	third-party evaluator. The sharing of student data must be in
988	accordance with requirements of 20 U.S.C. 1232g, the Family
989	Educational Rights and Privacy Act, and shall be for the sole
990	purpose of conducting the evaluation. All parties must preserve
991	the confidentiality of such information as required by law.
992	(k)  Notify an eligible nonprofit scholarship-funding
993	organization of any of the organization's identified students
994	who are receiving an educational scholarship pursuant to chapter
995	1002.
996	(l)  Notify an eligible nonprofit scholarship-funding
997	organization of any of the organization's identified students
998	who are receiving a corporate income tax credit scholarship from
999	another eligible nonprofit scholarship-funding organization.
1000	(m)  Require quarterly reports by an eligible nonprofit
1001	scholarship-funding organization regarding the number of
1002	students participating in the scholarship program, the private
1003	schools at which the students are enrolled, and other
1004	information deemed necessary by the Department of Education.
1005	(10)  COMMISSIONER OF EDUCATION AUTHORITY AND
1006	OBLIGATIONS.--
1007	(a)  The Commissioner of Education shall deny, suspend, or
1008	revoke a private school's participation in the scholarship
1009	program if it is determined that the private school has failed
1010	to comply with the provisions of this section. However, in
1011	instances in which the noncompliance is correctable within a
1012	reasonable amount of time and in which the health, safety, and
1013	welfare of the students are not threatened, the commissioner may
1014	issue a notice of noncompliance which shall provide the private
1015	school with a timeframe within which to provide evidence of
1016	compliance prior to taking action to suspend or revoke the
1017	private school's participation in the scholarship program.
1018	(b)  The commissioner's determination is subject to the
1019	following:
1020	1.  If the commissioner intends to deny, suspend, or revoke
1021	a private school's participation in the scholarship program, the
1022	Department of Education shall notify the private school of such
1023	proposed action in writing by certified mail and regular mail to
1024	the private school's address of record with the Department of
1025	Education. The notification shall include the reasons for the
1026	proposed action and notice of the timelines and procedures set
1027	forth in this paragraph.
1028	2.  The private school that is adversely affected by the
1029	proposed action shall have 15 days from receipt of the notice of
1030	proposed action to file with the Department of Education's
1031	agency clerk a request for a proceeding pursuant to ss. 120.569
1032	and 120.57. If the private school is entitled to a hearing under
1033	s. 120.57(1), the Department of Education shall forward the
1034	request to the Division of Administrative Hearings.
1035	3.  Upon receipt of a request referred pursuant to this
1036	paragraph, the director of the Division of Administrative
1037	Hearings shall expedite the hearing and assign an administrative
1038	law judge who shall commence a hearing within 30 days after the
1039	receipt of the formal written request by the division and enter
1040	a recommended order within 30 days after the hearing or within
1041	30 days after receipt of the hearing transcript, whichever is
1042	later. Each party shall be allowed 10 days in which to submit
1043	written exceptions to the recommended order. A final order shall
1044	be entered by the agency within 30 days after the entry of a
1045	recommended order. The provisions of this subparagraph may be
1046	waived upon stipulation by all parties.
1047	(c)  The commissioner may immediately suspend payment of
1048	scholarship funds if it is determined that there is probable
1049	cause to believe that there is:
1050	1.  An imminent threat to the health, safety, and welfare
1051	of the students; or
1052	2.  Fraudulent activity on the part of the private school.
1053
1054	The commissioner's order suspending payment pursuant to this
1055	paragraph may be appealed pursuant to the same procedures and
1056	timelines as the notice of proposed action set forth in
1057	paragraph (b).
1058	(11)  SCHOLARSHIP AMOUNT AND PAYMENT.--
1059	(a)  The amount of a scholarship provided to any student
1060	for any single school year by an eligible nonprofit scholarship-
1061	funding organization from eligible contributions shall not
1062	exceed the following annual limits:
1063	1.  Three thousand five hundred dollars for a scholarship
1064	awarded to a student enrolled in an eligible private school.
1065	2.  Five hundred dollars for a scholarship awarded to a
1066	student enrolled in a Florida public school that is located
1067	outside the district in which the student resides or in a lab
1068	school as defined in s. 1002.32.
1069
1070	The scholarship amount in subparagraph 1. is for the 2005-2006
1071	fiscal year and shall be adjusted each year by the same
1072	percentage as the increase or decrease in total funds per
1073	unweighted FTE, adjusted for Florida Retirement System changes
1074	if applicable, under the Florida Education Finance Program as
1075	provided in the General Appropriations Act workpapers. However,
1076	the scholarship amount may not increase by more than 3 percent
1077	in any year. The Commissioner of Education shall certify to the
1078	department and notify eligible nonprofit scholarship-funding
1079	organizations of the resulting value of the scholarship within
1080	30 days after the General Appropriations Act becomes law.
1081	(b)  Payment of the scholarship by the eligible nonprofit
1082	scholarship-funding organization shall be by individual warrant
1083	or check made payable to the student's parent. If the parent
1084	chooses for his or her child to attend an eligible private
1085	school, the warrant or check must be delivered by the eligible
1086	nonprofit scholarship-funding organization to the private school
1087	of the parent's choice, and the parent shall restrictively
1088	endorse the warrant or check to the private school. An eligible
1089	nonprofit scholarship-funding organization shall ensure that the
1090	parent to whom the warrant or check is made restrictively
1091	endorsed the warrant or check to the private school for deposit
1092	into the account of the private school.
1093	(c)  An eligible nonprofit scholarship-funding organization
1094	shall obtain verification from the private school of a student's
1095	continued attendance at the school prior to each scholarship
1096	payment.
1097	(d)  Payment of the scholarship shall be made by the
1098	eligible nonprofit scholarship-funding organization no less
1099	frequently than on a quarterly basis.
1100	(12)(7)  ADMINISTRATION; RULES.--
1101	(a)  If the credit granted pursuant to this section is not
1102	fully used in any one year because of insufficient tax liability
1103	on the part of the corporation, the unused amount may be carried
1104	forward for a period not to exceed 3 years; however, any
1105	taxpayer that seeks to carry forward an unused amount of tax
1106	credit must submit an application for allocation of tax credits
1107	or carryforward credits as required in paragraph (d) in the year
1108	that the taxpayer intends to use the carryforward. The total
1109	amount of tax credits and carryforward of tax credits granted
1110	each state fiscal year under this section is $88 million. This
1111	carryforward applies to all approved contributions made after
1112	January 1, 2002. A taxpayer may not convey, assign, or transfer
1113	the credit authorized by this section to another entity unless
1114	all of the assets of the taxpayer are conveyed, assigned, or
1115	transferred in the same transaction.
1116	(b)  An application for a tax credit pursuant to this
1117	section shall be submitted to the department on forms
1118	established by rule of the department.
1119	(c)  The department and the Department of Education shall
1120	develop a cooperative agreement to assist in the administration
1121	of this section. The Department of Education shall be
1122	responsible for annually submitting, by March 15, to the
1123	department a list of eligible nonprofit scholarship-funding
1124	organizations that meet the requirements of paragraph (2)(d) and
1125	for monitoring eligibility of nonprofit scholarship-funding
1126	organizations that meet the requirements of paragraph (2)(d),
1127	eligibility of nonpublic schools that meet the requirements of
1128	paragraph (2)(c), and eligibility of expenditures under this
1129	section as provided in subsection (4).
1130	(d)  The department shall adopt rules necessary to
1131	administer this section, including rules establishing
1132	application forms and procedures and governing the allocation of
1133	tax credits and carryforward credits under this section on a
1134	first-come, first-served basis.
1135	(e)  The State Board Department of Education shall adopt
1136	rules pursuant to ss. 120.536(1) and 120.54 necessary to
1137	administer this section determine eligibility of nonprofit
1138	scholarship-funding organizations as defined in paragraph (2)(d)
1139	and according to the provisions of subsection (4) and identify
1140	qualified students as defined in paragraph (2)(e).
1141	(13)(8)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
1142	contributions received by an eligible nonprofit
1143	scholarship-funding organization shall be deposited in a manner
1144	consistent with s. 17.57(2).
1145	Section 3.  Section 1002.421, Florida Statutes, is created
1146	to read:
1147	1002.421  Rights and obligations of private schools
1148	participating in state school choice scholarship
1149	programs.--Requirements of this section are in addition to
1150	private school requirements outlined in s. 1002.42, specific
1151	requirements identified within respective scholarship program
1152	laws, and other provisions of Florida law that apply to private
1153	schools.
1154	(1)  A Florida private school participating in the
1155	Corporate Income Tax Credit Scholarship Program established
1156	pursuant to s. 220.187 or an educational scholarship program
1157	established pursuant to this chapter must comply with all
1158	requirements of this section.
1159	(2)  A private school participating in a scholarship
1160	program must be a Florida private school as defined in s.
1161	1002.01(2) and must:
1162	(a)  Be a registered Florida private school in accordance
1163	with s. 1002.42.
1164	(b)  Comply with antidiscrimination provisions of 42 U.S.C.
1165	s. 2000d.
1166	(c)  Notify the department of its intent to participate in
1167	a scholarship program.
1168	(d)  Notify the department of any change in the school's
1169	name, school director, mailing address, or physical location
1170	within 15 days after the change.
1171	(e)  Complete student enrollment and attendance
1172	verification requirements, including use of an on-line
1173	attendance verification form, prior to scholarship payment.
1174	(f)  Annually complete and submit to the department a
1175	notarized scholarship compliance statement certifying compliance
1176	with state laws relating to private school participation in the
1177	scholarship program.
1178	(g)  Demonstrate fiscal soundness and accountability by:
1179	1.  Being in operation for at least 3 school years or
1180	obtaining a surety bond or letter of credit for the amount equal
1181	to the scholarship funds for any quarter and filing the surety
1182	bond or letter of credit with the department.
1183	2.  Requiring the parent of each scholarship student to
1184	personally restrictively endorse the scholarship warrant to the
1185	school. The school may not act as attorney in fact for the
1186	parent of a scholarship student under the authority of a power
1187	of attorney executed by such parent, or under any other
1188	authority, to endorse scholarship warrants on behalf of such
1189	parent.
1190	(h)  Meet applicable state and local health, safety, and
1191	welfare laws, codes, and rules, including:
1192	1.  Fire safety.
1193	2.  Building safety.
1194	(i)  Employ or contract with teachers who hold
1195	baccalaureate or higher degrees, have at least 3 years of
1196	teaching experience in public or private schools, or have
1197	special skills, knowledge, or expertise that qualifies them to
1198	provide instruction in subjects taught.
1199	(j)  Require each individual with direct student contact
1200	with a scholarship student to be of good moral character, to be
1201	subject to the level 1 background screening as provided under
1202	chapter 435, to be denied employment or terminated if required
1203	under s. 435.06, and not to be ineligible to teach in a public
1204	school because his or her educator certificate is suspended or
1205	revoked. For purposes of this paragraph:
1206	1.  An "individual with direct student contact" means any
1207	individual who has unsupervised access to a scholarship student
1208	for whom the private school is responsible.
1209	2.  The costs of fingerprinting and the background check
1210	shall not be borne by the state.
1211	3.  Continued employment of an individual after
1212	notification that the individual has failed the level 1
1213	background screening shall cause a private school to be
1214	ineligible for participation in a scholarship program.
1215	4.  An individual holding a valid Florida teaching
1216	certificate who has been fingerprinted pursuant to s. 1012.32
1217	shall not be required to comply with the provisions of this
1218	paragraph.
1219	(3)  The inability of a private school to meet the
1220	requirements of this section shall constitute a basis for the
1221	ineligibility of the private school to participate in a
1222	scholarship program as determined by the department.
1223	(4)  The inclusion of eligible private schools within
1224	options available to Florida public school students does not
1225	expand the regulatory authority of the state, its officers, or
1226	any school district to impose any additional regulation of
1227	private schools beyond those reasonably necessary to enforce
1228	requirements expressly set forth in this section.
1229	(5)  The State Board of Education shall adopt rules
1230	pursuant to ss. 120.536(1) and 120.54 to administer this
1231	section.
1232	Section 4.  This act shall take effect upon becoming a law.

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