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

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