Senate Bill sb0010

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    Florida Senate - 2006                                    SB 10

    By Senator Atwater





    25-409A-06

  1                      A bill to be entitled

  2         An act relating to accountability in

  3         scholarship programs; amending s. 1002.39,

  4         F.S., relating to the John M. McKay

  5         Scholarships for Students with Disabilities

  6         Program; redefining the term "students with

  7         disabilities"; revising student eligibility

  8         requirements for receipt of a scholarship and

  9         restricting eligibility therefor; providing for

10         the term of a scholarship; revising and adding

11         obligations of school districts and clarifying

12         parental options; revising and adding

13         obligations of the Department of Education,

14         including verification of eligibility of

15         private schools and establishment of a

16         procedure for notification of violations,

17         subsequent investigation, and certification of

18         compliance by private schools; providing

19         authority and obligations of the Commissioner

20         of Education, including the denial, suspension,

21         or revocation of a private school's

22         participation in the scholarship program and

23         procedures and timelines therefor; revising

24         eligibility requirements and obligations of

25         private schools, including compliance with

26         specified laws and academic accountability to

27         the parent; revising parents' and students'

28         responsibilities for participation in

29         scholarship programs; prohibiting a private

30         school from acting as attorney in fact to sign

31         a scholarship warrant; revising provisions

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    Florida Senate - 2006                                    SB 10
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 1         relating to scholarship funding and payment;

 2         providing funding and payment requirements for

 3         former students of the Florida School for the

 4         Deaf and the Blind and for students exiting a

 5         Department of Juvenile Justice program;

 6         providing obligations of the Department of

 7         Financial Services; providing scope of

 8         authority; requiring adoption of rules;

 9         amending s. 220.187, F.S., relating to credits

10         for contributions to nonprofit

11         scholarship-funding organizations; redefining

12         terms; naming the scholarship program;

13         providing requirements for student eligibility

14         to receive a corporate income tax credit

15         scholarship and restricting eligibility

16         therefor; revising provisions relating to tax

17         credit for small businesses; providing for

18         rescindment of tax credit allocation; revising

19         and adding obligations of eligible nonprofit

20         scholarship-funding organizations, including

21         compliance with requirements for background

22         checks and requirements relating to ownership

23         or operation, audits, and reports; requiring

24         certain information to remain confidential in

25         accordance with s. 213.053, F.S.; revising and

26         adding parents' and students' responsibilities

27         for participation in scholarship programs,

28         including compliance with the private school's

29         published policies, participation in student

30         academic assessment, and restrictive

31         endorsement of scholarship warrants or checks;

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 1         prohibiting power of attorney for endorsing a

 2         scholarship warrant or check; revising and

 3         adding eligibility requirements and obligations

 4         of private schools, including compliance with

 5         specified laws and academic accountability to

 6         the parent; revising and adding obligations of

 7         the Department of Education, including

 8         verification of program participants,

 9         establishment of a procedure for notification

10         of violations, subsequent investigation, and

11         certification of compliance by private schools

12         and selection of a research organization to

13         analyze student performance data; providing

14         authority and obligations of the Commissioner

15         of Education, including the denial, suspension,

16         or revocation of a private school's

17         participation in the scholarship program and

18         procedures and timelines therefor; revising and

19         adding provisions relating to scholarship

20         funding and payment, including the amount of a

21         scholarship and payment procedures; requiring

22         adoption of rules; creating s. 1002.421, F.S.,

23         relating to rights and obligations of private

24         schools participating in state school choice

25         scholarship programs; providing requirements

26         for participation in a scholarship program,

27         including compliance with specified state,

28         local, and federal laws and demonstration of

29         fiscal soundness; requiring restrictive

30         endorsement of checks and prohibiting a school

31         from acting as attorney in fact; creating s.

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 1         1002.422, F.S.; requiring employment of

 2         qualified teachers and background screening of

 3         individuals having direct student contact;

 4         providing scope of authority; requiring

 5         adoption of rules; providing for purchase of an

 6         electronic fingerprint scanner for purposes of

 7         background screening for certain private school

 8         employees; providing an effective date.

 9  

10  Be It Enacted by the Legislature of the State of Florida:

11  

12         Section 1.  Section 1002.39, Florida Statutes, is

13  amended to read:

14         1002.39  The John M. McKay Scholarships for Students

15  with Disabilities Program.--There is established a program

16  that is separate and distinct from the Opportunity Scholarship

17  Program and is named the John M. McKay Scholarships for

18  Students with Disabilities Program, pursuant to this section.

19         (1)  THE JOHN M. MCKAY SCHOLARSHIPS FOR STUDENTS WITH

20  DISABILITIES PROGRAM.--The John M. McKay Scholarships for

21  Students with Disabilities Program is established to provide

22  the option to attend a public school other than the one to

23  which assigned, or to provide a scholarship to a private

24  school of choice, for students with disabilities for whom an

25  individual education plan has been written in accordance with

26  rules of the State Board of Education. Students with

27  disabilities include K-12 students who are documented as

28  having mental retardation; a mentally handicapped, speech or

29  and language impairment; a impaired, deaf or hard of hearing

30  impairment, including deafness; a visual impairment, including

31  blindness; a, visually impaired, dual sensory impairment; a

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 1  physical impairment; a serious emotional disturbance,

 2  including an emotional handicap; a impaired, physically

 3  impaired, emotionally handicapped, specific learning

 4  disability, including, but not limited to, dyslexia,

 5  dyscalculia, or developmental aphasia; a traumatic brain

 6  injury; or autism disabled, hospitalized or homebound, or

 7  autistic.

 8         (2)  JOHN M. MCKAY SCHOLARSHIP ELIGIBILITY.--The parent

 9  of a public school student with a disability who is

10  dissatisfied with the student's progress may request and

11  receive from the state a John M. McKay Scholarship for the

12  child to enroll in and attend a private school in accordance

13  with this section if:

14         (a)  By assigned school attendance area or by special

15  assignment, The student has spent the prior school year in

16  attendance at a Florida public school or the Florida School

17  for the Deaf and the Blind. Prior school year in attendance

18  means that the student was:

19         1.  Enrolled and reported by a school district for

20  funding during the preceding October and February Florida

21  Education Finance Program surveys in kindergarten through

22  grade 12, which shall include time spent in a Department of

23  Juvenile Justice commitment program if funded under the

24  Florida Education Finance Program;

25         2.  Enrolled and reported by the Florida School for the

26  Deaf and the Blind during the preceding October and February

27  student membership surveys in kindergarten through grade 12;

28  or

29         3.  Enrolled and reported by a school district for

30  funding during the preceding October and February Florida

31  Education Finance Program surveys, at least 4 years old when

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 1  so enrolled and reported, and eligible for services under s.

 2  1003.21(1)(e). However, this paragraph does not apply to a

 3  dependent child of a member of the United States Armed Forces

 4  who transfers to a school in this state from out of state or

 5  from a foreign country pursuant to a parent's permanent change

 6  of station orders is exempt from this paragraph but. A

 7  dependent child of a member of the United States Armed Forces

 8  who transfers to a school in this state from out of state or

 9  from a foreign country pursuant to a parent's permanent change

10  of station orders must meet all other eligibility requirements

11  to participate in the program.

12         (b)  The parent has obtained acceptance for admission

13  of the student to a private school that is eligible for the

14  program under subsection (8) (4) and has requested from the

15  department notified the school district of the request for a

16  scholarship at least 60 days prior to the date of the first

17  scholarship payment. The request parental notification must be

18  through a communication directly to the department district or

19  through the Department of Education to the district in a

20  manner that creates a written or electronic record of the

21  request notification and the date of receipt of the request

22  notification.

23  

24  This section does not apply to a student who is enrolled in a

25  school operating for the purpose of providing educational

26  services to youth in Department of Juvenile Justice commitment

27  programs. For purposes of continuity of educational choice,

28  the scholarship shall remain in force until the student

29  returns to a public school or graduates from high school.

30  However, at any time, the student's parent may remove the

31  student from the private school and place the student in

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 1  another private school that is eligible for the program under

 2  subsection (4) or in a public school as provided in subsection

 3  (3).

 4         (3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student

 5  is not eligible for a John M. McKay Scholarship while he or

 6  she is:

 7         (a)  Enrolled in a school operating for the purpose of

 8  providing educational services to youth in commitment programs

 9  of the Department of Juvenile Justice.

10         (b)  Receiving a corporate income tax credit

11  scholarship under s. 220.187.

12         (c)  Receiving an educational scholarship pursuant to

13  this chapter.

14         (d)  Participating in a home education program as

15  defined in s. 1002.01(1).

16         (e)  Participating in a private tutoring program

17  pursuant to s. 1002.43.

18         (f)  Participating in a virtual school, correspondence

19  school, or distance learning program that receives state

20  funding pursuant to the student's participation.

21         (g)  Enrolled in the Florida School for the Deaf and

22  the Blind.

23         (4)  TERM OF JOHN M. MCKAY SCHOLARSHIP.--

24         (a)  For purposes of continuity of educational choice,

25  a John M. McKay Scholarship shall remain in force until the

26  student returns to a public school, graduates from high

27  school, or reaches the age of 22, whichever occurs first.

28         (b)  Upon reasonable notice to the department and the

29  school district, the student's parent may remove the student

30  from the private school and place the student in a public

31  school, as provided in subparagraph (5)(a)2.

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 1         (c)  Upon reasonable notice to the department, the

 2  student's parent may move the student from one participating

 3  private school to another participating private school.

 4         (5)(3)  SCHOOL DISTRICT AND DEPARTMENT OF EDUCATION

 5  OBLIGATIONS; PARENTAL OPTIONS.--

 6         (a)1.  By April 1 of each year and within 10 days after

 7  an individual education plan meeting, a school district shall

 8  timely notify the parent of the student of all options

 9  available pursuant to this section, inform the parent of the

10  availability of the department's telephone hotline and

11  Internet website for additional information on John M. McKay

12  Scholarships, and offer that student's parent an opportunity

13  to enroll the student in another public school within the

14  district.

15         2.  The parent is not required to accept the this offer

16  of enrolling in another public school in lieu of requesting a

17  John M. McKay Scholarship to a private school. However, if the

18  parent chooses the public school option, the student may

19  continue attending a public school chosen by the parent until

20  the student graduates from high school.

21         3.  If the parent chooses a public school consistent

22  with the district school board's choice plan under s. 1002.31,

23  the school district shall provide transportation to the public

24  school selected by the parent. The parent is responsible to

25  provide transportation to a public school chosen that is not

26  consistent with the district school board's choice plan under

27  s. 1002.31.

28         (b)1.  For a student with disabilities who does not

29  have a matrix of services under s. 1011.62(1)(e), the school

30  district must complete a matrix that assigns the student to

31  

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 1  one of the levels of service as they existed prior to the

 2  2000-2001 school year.

 3         2.a.  Within 10 school days after it receives

 4  notification of a parent's request for a John M. McKay

 5  Scholarship, a district school board must notify the student's

 6  parent if the matrix has not been completed and inform the

 7  parent that the district is required to complete the matrix

 8  within 30 days after receiving notice of the parent's request

 9  for a John M. McKay Scholarship. This notice should include

10  the required completion date for the matrix.

11         b.  The school district must complete the matrix of

12  services for any student who is participating in the John M.

13  McKay Scholarships for Students with Disabilities Program and

14  must notify the department of Education of the student's

15  matrix level within 30 days after receiving notification of a

16  request by the student's parent of intent to participate in

17  the scholarship program. The school district must provide the

18  student's parent with the student's matrix level within 10

19  school days after its completion.

20         c.  The department of Education shall notify the

21  private school of the amount of the scholarship within 10 days

22  after receiving the school district's notification of the

23  student's matrix level. Within 10 school days after it

24  receives notification of a parent's intent to apply for a

25  McKay Scholarship, a district school board must notify the

26  student's parent if the matrix has not been completed and

27  provide the parent with the date for completion of the matrix

28  required in this paragraph.

29         d.  A school district may change a matrix of services

30  only if the change is to correct a technical, typographical,

31  or calculation error.

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 1         (c)  A school district shall provide notification to

 2  parents of the availability of a reevaluation at least every 3

 3  years of each student who receives a John M. McKay

 4  Scholarship.

 5         (d)(c)  If the parent chooses the private school option

 6  and the student is accepted by the private school pending the

 7  availability of a space for the student, the parent of the

 8  student must notify the department school district 60 days

 9  prior to the first scholarship payment and before entering the

10  private school in order to be eligible for the scholarship

11  when a space becomes available for the student in the private

12  school.

13         (e)(d)  The parent of a student may choose, as an

14  alternative, to enroll the student in and transport the

15  student to a public school in an adjacent school district that

16  which has available space and has a program with the services

17  agreed to in the student's individual education plan already

18  in place, and that school district shall accept the student

19  and report the student for purposes of the district's funding

20  pursuant to the Florida Education Finance Program.

21         (f)(e)  For a student in the district who participates

22  in the John M. McKay Scholarships for Students with

23  Disabilities Program whose parent requests that the student

24  take the statewide assessments under s. 1008.22, the district

25  shall provide locations and times to take all statewide

26  assessments.

27         (f)  A school district must notify the Department of

28  Education within 10 days after it receives notification of a

29  parent's intent to apply for a scholarship for a student with

30  a disability. A school district must provide the student's

31  

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 1  parent with the student's matrix level within 10 school days

 2  after its completion.

 3         (6)  DEPARTMENT OF EDUCATION; OBLIGATIONS.--The

 4  department shall:

 5         (a)  Establish a toll-free hotline that provides

 6  parents and private schools with information on participation

 7  in the John M. McKay Scholarships for Students with

 8  Disabilities Program.

 9         (b)  Annually verify the eligibility of private schools

10  that meet the requirements of subsection (8).

11         (c)  Establish a procedure by which individuals may

12  notify the department of any violation by a parent, private

13  school, or school district of state laws relating to program

14  participation. The department shall conduct an investigation

15  of any written complaint of a violation of this section, or

16  make a referral to the appropriate agency for an

17  investigation, if the complaint is signed by the complainant

18  and is legally sufficient. A complaint is legally sufficient

19  if it contains ultimate facts that show that a violation of

20  this section or any rule adopted by the State Board of

21  Education has occurred. In order to determine legal

22  sufficiency, the department may require supporting information

23  or documentation from the complainant.

24         (d)  Require an annual, notarized, sworn compliance

25  statement by participating private schools certifying

26  compliance with state laws and shall retain such records.

27         (e)  Cross-check the list of participating scholarship

28  students with the public school enrollment lists prior to the

29  first scholarship payment to avoid duplication.

30         (7)  COMMISSIONER OF EDUCATION; AUTHORITY AND

31  OBLIGATIONS.--

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 1         (a)  The Commissioner of Education shall deny, suspend,

 2  or revoke a private school's participation in the scholarship

 3  program if it is determined that the private school has failed

 4  to comply with this section. However, if the noncompliance is

 5  correctable within a reasonable amount of time and the health,

 6  safety, and welfare of the students are not threatened, the

 7  commissioner may issue a notice of noncompliance which

 8  provides the private school with a timeframe within which to

 9  provide evidence of compliance before taking action to suspend

10  or revoke the private school's participation in the

11  scholarship program.

12         (b)  The commissioner's determination is subject to the

13  following requirements:

14         1.  If the commissioner intends to deny, suspend, or

15  revoke a private school's participation in the scholarship

16  program, the department shall notify the private school of

17  such proposed action in writing sent by certified mail and

18  regular mail to the private school's address of record with

19  the department. The notification must include the reasons for

20  the proposed action and notice of the timelines and procedures

21  set forth in this paragraph.

22         2.  The private school that is adversely affected by

23  the proposed action shall have 15 days after receipt of the

24  notice of proposed action to file with the department's agency

25  clerk a request for a proceeding pursuant to ss. 120.569 and

26  120.57. If the private school is entitled to a hearing under

27  s. 120.57(1), the department shall forward the request to the

28  Division of Administrative Hearings.

29         3.  Upon receipt of a request referred pursuant to this

30  paragraph, the director of the Division of Administrative

31  Hearings shall expedite the hearing and assign an

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 1  administrative law judge who shall commence a hearing within

 2  30 days after the receipt of the formal written request by the

 3  division and enter a recommended order within 30 days after

 4  the hearing or within 30 days after receipt of the hearing

 5  transcript, whichever is later. Each party shall be allowed 10

 6  days in which to submit written exceptions to the recommended

 7  order. A final order shall be entered by the agency within 30

 8  days after the entry of a recommended order. The provisions of

 9  this subparagraph may be waived upon stipulation by all

10  parties.

11         (c)  The commissioner may immediately suspend payment

12  of scholarship funds if it is determined that there is

13  probable cause to believe that there is:

14         1.  An imminent threat to the health, safety, and

15  welfare of the students; or

16         2.  Fraudulent activity on the part of the private

17  school.

18  

19  The commissioner's order suspending payment pursuant to this

20  paragraph may be appealed pursuant to the same procedures and

21  timelines as the notice of proposed action set forth in

22  paragraph (b).

23         (8)(4)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--To

24  be eligible to participate in the John M. McKay Scholarships

25  for Students with Disabilities Program, a private school must

26  be a Florida private school, may be sectarian or nonsectarian,

27  and must:

28         (a)  Comply with all requirements for private schools

29  participating in state school choice scholarship programs

30  pursuant to s. 1002.421.

31  

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 1         (b)  Provide the department all documentation required

 2  for a student's participation, including the private school's

 3  and student's fee schedules, at least 30 days before the first

 4  quarterly scholarship payment is made for the student.

 5         (c)  Be academically accountable to the parent for

 6  meeting the educational needs of the student by:

 7         1.  At a minimum, annually providing to the parent a

 8  written explanation of the student's progress.

 9         2.  Cooperating with the scholarship student whose

10  parent chooses to participate in the statewide assessments

11  pursuant to s. 1008.22.

12  

13  The inability of a private school to meet the requirements of

14  this subsection shall constitute a basis for the ineligibility

15  of the private school to participate in the scholarship

16  program as determined by the department.

17         (a)  Demonstrate fiscal soundness by being in operation

18  for 1 school year or provide the Department of Education with

19  a statement by a certified public accountant confirming that

20  the private school desiring to participate is insured and the

21  owner or owners have sufficient capital or credit to operate

22  the school for the upcoming year serving the number of

23  students anticipated with expected revenues from tuition and

24  other sources that may be reasonably expected. In lieu of such

25  a statement, a surety bond or letter of credit for the amount

26  equal to the scholarship funds for any quarter may be filed

27  with the department.

28         (b)  Notify the Department of Education of its intent

29  to participate in the program under this section. The notice

30  must specify the grade levels and services that the private

31  

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 1  school has available for students with disabilities who are

 2  participating in the scholarship program.

 3         (c)  Comply with the antidiscrimination provisions of

 4  42 U.S.C. s. 2000d.

 5         (d)  Meet state and local health and safety laws and

 6  codes.

 7         (e)  Be academically accountable to the parent for

 8  meeting the educational needs of the student.

 9         (f)  Employ or contract with teachers who hold

10  baccalaureate or higher degrees, or have at least 3 years of

11  teaching experience in public or private schools, or have

12  special skills, knowledge, or expertise that qualifies them to

13  provide instruction in subjects taught.

14         (g)  Comply with all state laws relating to general

15  regulation of private schools.

16         (h)  Adhere to the tenets of its published disciplinary

17  procedures prior to the expulsion of a scholarship student.

18         (9)(5)  PARENTS' AND STUDENTS' RESPONSIBILITIES FOR

19  OBLIGATION OF PROGRAM PARTICIPATION PARTICIPANTS.--

20         (a)  A parent who applies for a John M. McKay

21  Scholarship is exercising his or her parental option to place

22  his or her child in a private school.

23         (a)  The parent must select the private school and

24  apply for the admission of his or her child.

25         (b)  The parent must have requested the scholarship at

26  least 60 days prior to the date of the first scholarship

27  payment.

28         (c)  Any student participating in the John M. Mckay

29  Scholarships for Students with Disabilities scholarship

30  Program must remain in attendance throughout the school year,

31  

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 1  unless excused by the school for illness or other good cause,

 2  and must comply fully with the school's code of conduct.

 3         (d)  Each The parent and of each student has an

 4  obligation to the private school to participating in the

 5  scholarship program must comply fully with the private

 6  school's published policies parental involvement requirements,

 7  unless excused by the school for illness or other good cause.

 8         (e)  If the parent requests that the student

 9  participating in the John M. Mckay Scholarships for Students

10  with Disabilities scholarship Program take all statewide

11  assessments required pursuant to s. 1008.22, the parent is

12  responsible for transporting the student to the assessment

13  site designated by the school district.

14         (f)  Upon receipt of a scholarship warrant, the parent

15  to whom the warrant is made must restrictively endorse the

16  warrant to the private school for deposit into the account of

17  the private school. The parent may not designate any entity or

18  individual associated with the participating private school as

19  the parent's attorney in fact to sign a scholarship warrant.

20         (g)  A participant who fails to comply with this

21  paragraph subsection forfeits the scholarship.

22         (10)(6)  JOHN M. MCKAY SCHOLARSHIP FUNDING AND

23  PAYMENT.--

24         (a)1.  The maximum scholarship granted for an eligible

25  student with disabilities shall be a calculated amount

26  equivalent to the base student allocation in the Florida

27  Education Finance Program multiplied by the appropriate cost

28  factor for the educational program that would have been

29  provided for the student in the district school to which he or

30  she was assigned, multiplied by the district cost

31  differential.

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 1         2.  In addition, a share of the guaranteed allocation

 2  for exceptional students shall be determined and added to the

 3  calculated amount.  The calculation shall be based on the

 4  methodology and the data used to calculate the guaranteed

 5  allocation for exceptional students for each district in

 6  chapter 2000-166, Laws of Florida.  Except as provided in

 7  subparagraphs 3. and 4. subparagraph 3., the calculation shall

 8  be based on the student's grade, matrix level of services, and

 9  the difference between the 2000-2001 basic program and the

10  appropriate level of services cost factor, multiplied by the

11  2000-2001 base student allocation and the 2000-2001 district

12  cost differential for the sending district.  Also, the

13  calculated amount shall include the per-student share of

14  supplemental academic instruction funds, instructional

15  materials funds, technology funds, and other categorical funds

16  as provided for such purposes in the General Appropriations

17  Act.

18         3.  The calculated scholarship amount for a student who

19  has spent the prior school year in attendance at the Florida

20  School for the Deaf and the Blind shall be calculated as

21  provided in subparagraphs 1. and 2. However, the calculation

22  must be based on the school district in which the parent

23  resides at the time of the scholarship request.

24         4.3.  Until the school district completes the matrix

25  required by paragraph (5)(b) (3)(b), the calculation shall be

26  based on the matrix that assigns the student to support level

27  I of service as it existed prior to the 2000-2001 school year.

28  When the school district completes the matrix, the amount of

29  the payment shall be adjusted as needed.

30         (b)  The amount of the John M. McKay Scholarship shall

31  be the calculated amount or the amount of the private school's

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 1  tuition and fees, whichever is less. The amount of any

 2  assessment fee required by the participating private school

 3  may be paid from the total amount of the scholarship.

 4         (c)  If the participating private school requires

 5  partial payment of tuition prior to the start of the academic

 6  year to reserve space for students admitted to the school,

 7  that partial payment may be paid by the Department of

 8  Education prior to the first quarterly payment of the year in

 9  which the John M. McKay Scholarship is awarded, up to a

10  maximum of $1,000, and deducted from subsequent scholarship

11  payments. If a student decides not to attend the participating

12  private school, the partial reservation payment must be

13  returned to the Department of Education by the participating

14  private school. There is a limit of one reservation payment

15  per student per year.

16         (c)1.(d)  The school district shall report all students

17  who are attending a private school under this program. The

18  students with disabilities attending private schools on John

19  M. McKay Scholarships shall be reported separately from other

20  students reported for purposes of the Florida Education

21  Finance Program.

22         2.  For program participants who are eligible under

23  subparagraph (2)(a)2., the school district that is used as the

24  basis for the calculation of the scholarship amount as

25  provided in subparagraph (a)3. shall:

26         a.  Report to the department all such students who are

27  attending a private school under this program.

28         b.  Be held harmless for such students from the

29  weighted enrollment ceiling for group 2 programs in s.

30  1011.62(1)(d)3.a. during the first school year in which the

31  students are reported.

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 1         (d)(e)  Following notification on July 1, September 1,

 2  December 1, or February 1 of the number of program

 3  participants, the department of Education shall transfer, from

 4  General Revenue funds only, the amount calculated under

 5  paragraph (b) from the school district's total funding

 6  entitlement under the Florida Education Finance Program and

 7  from authorized categorical accounts to a separate account for

 8  the scholarship program for quarterly disbursement to the

 9  parents of participating students. Funds may not be

10  transferred from any funding provided to the Florida School

11  for the Deaf and the Blind for program participants who are

12  eligible under subparagraph (2)(a)2. For a student exiting a

13  commitment program of the Department of Juvenile Justice who

14  chooses to participate in the scholarship program, the amount

15  of the John M. McKay Scholarship calculated pursuant to

16  paragraph (b) shall be transferred from the school district in

17  which the student last attended a public school prior to

18  commitment to the Department of Juvenile Justice. When a

19  student enters the scholarship program, the department of

20  Education must receive all documentation required for the

21  student's participation, including the private school's and

22  student's fee schedules, at least 30 days before the first

23  quarterly scholarship payment is made for the student. The

24  Department of Education may not make any retroactive payments.

25         (e)(f)  Upon notification proper documentation reviewed

26  and approved by the department that it has received the

27  documentation required under paragraph (d) of Education, the

28  Chief Financial Officer shall make scholarship payments in

29  four equal amounts no later than September 1, November 1,

30  February 1, and April 1 15 of each academic year in which the

31  scholarship is in force. The initial payment shall be made

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 1  after department of Education verification of admission

 2  acceptance, and subsequent payments shall be made upon

 3  verification of continued enrollment and attendance at the

 4  private school. Payment must be by individual warrant made

 5  payable to the student's parent and mailed by the department

 6  of Education to the private school of the parent's choice, and

 7  the parent shall restrictively endorse the warrant to the

 8  private school for deposit into the account of the private

 9  school.

10         (f)  Subsequent to each scholarship payment, the

11  Department of Financial Services shall randomly review

12  endorsed warrants to confirm compliance with endorsement

13  requirements. The Department of Financial Services shall

14  immediately report inconsistencies or irregularities to the

15  department.

16         (11)(7)  LIABILITY.--No Liability shall arise on the

17  part of the state may not arise based on the award or use of a

18  John M. McKay Scholarship.

19         (12)  SCOPE OF AUTHORITY.--The inclusion of eligible

20  private schools within options available to Florida public

21  school students does not expand the regulatory authority of

22  the state, its officers, or any school district to impose any

23  additional regulation of private schools beyond those

24  reasonably necessary to enforce requirements expressly set

25  forth in this section.

26         (13)(8)  RULES.--The State Board of Education shall

27  adopt rules pursuant to ss. 120.536(1) and 120.54 to

28  administer this section, including rules that school districts

29  must use to expedite the development of a matrix of services

30  based on an active a current individual education plan from

31  another state or a foreign country for a transferring student

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 1  with a disability who is a dependent child of a member of the

 2  United States Armed Forces. The rules must identify the

 3  appropriate school district personnel who must complete the

 4  matrix of services.  For purposes of these rules, a

 5  transferring  student with a disability is one who was

 6  previously enrolled as a student with a disability in an

 7  out-of-state or an out-of-country public or private school or

 8  agency program and who is transferring from out of state or

 9  from a foreign country pursuant to a parent's permanent change

10  of station orders. However, the inclusion of eligible private

11  schools within options available to Florida public school

12  students does not expand the regulatory authority of the

13  state, its officers, or any school district to impose any

14  additional regulation of private schools beyond those

15  reasonably necessary to enforce requirements expressly set

16  forth in this section.

17         Section 2.  Section 220.187, Florida Statutes, is

18  amended to read:

19         220.187  Credits for contributions to nonprofit

20  scholarship-funding organizations.--

21         (1)  PURPOSE.--The purpose of this section is to:

22         (a)  Encourage private, voluntary contributions to

23  nonprofit scholarship-funding organizations.

24         (b)  Expand educational opportunities for children of

25  families that have limited financial resources.

26         (c)  Enable children in this state to achieve a greater

27  level of excellence in their education.

28         (2)  DEFINITIONS.--As used in this section, the term:

29         (a)  "Department" means the Department of Revenue.

30         (b)  "Eligible contribution" means a monetary

31  contribution from a taxpayer, subject to the restrictions

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 1  provided in this section, to an eligible nonprofit

 2  scholarship-funding organization. The taxpayer making the

 3  contribution may not designate a specific child as the

 4  beneficiary of the contribution. The taxpayer may not

 5  contribute more than $5 million to any single eligible

 6  nonprofit scholarship-funding organization.

 7         (c)  "Eligible nonpublic school" means a nonpublic

 8  school located in Florida that offers an education to students

 9  in any grades K-12 and that meets the requirements in

10  subsection (6).

11         (c)(d)  "Eligible nonprofit scholarship-funding

12  organization" means a charitable organization that:

13         1.  Is exempt from federal income tax pursuant to s.

14  501(c)(3) of the Internal Revenue Code.

15         2.  Is a Florida entity formed under chapter 607,

16  chapter 608, or chapter 617 and whose principal office is

17  located in the state. and that

18         3.  Complies with the provisions of subsection (6) (4).

19         (d)  "Eligible private school" means a private school,

20  as defined in s. 1002.01, located in this state which offers

21  an education to students in any grades K-12 and which meets

22  the requirements in subsection (8).

23         (e)  "Owner or operator" includes:

24         1.  An owner, president, officer, or director of an

25  eligible nonprofit scholarship-funding organization or a

26  person having equivalent decisionmaking authority over an

27  eligible nonprofit scholarship-funding organization.

28         2.  An owner, operator, superintendent, or principal of

29  an eligible private school or a person having equivalent

30  decisionmaking authority over an eligible private school.

31  

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 1         (e)  "Qualified student" means a student who qualifies

 2  for free or reduced-price school lunches under the National

 3  School Lunch Act and who:

 4         (3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate

 5  Income Tax Credit Scholarship Program is established. A

 6  student is eligible for a corporate income tax credit

 7  scholarship if the student qualifies for free or reduced-price

 8  school lunches under the National School Lunch Act and:

 9         (a)1.  Was counted as a full-time equivalent student

10  during the previous state fiscal year for purposes of state

11  per-student funding;

12         (b)2.  Received a scholarship from an eligible

13  nonprofit scholarship-funding organization during the previous

14  school year; or

15         (c)3.  Is eligible to enter kindergarten or first

16  grade.

17  

18  A student may continue in the scholarship program as long as

19  the family income level does not exceed 200 percent of the

20  federal poverty level.

21         (4)  SCHOLARSHIP PROHIBITIONS.--A student is not

22  eligible for a scholarship while he or she is:

23         (a)  Enrolled in a school operating for the purpose of

24  providing educational services to youth in commitment programs

25  of the Department of Juvenile Justice.

26         (b)  Receiving a scholarship from another eligible

27  nonprofit scholarship-funding organization under this section.

28         (c)  Receiving an educational scholarship pursuant to

29  chapter 1002.

30         (d)  Participating in a home education program as

31  defined in s. 1002.01(1).

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 1         (e)  Participating in a private tutoring program

 2  pursuant to s. 1002.43.

 3         (f)  Participating in a virtual school, correspondence

 4  school, or distance learning program that receives state

 5  funding pursuant to the student's participation.

 6         (g)  Enrolled in the Florida School for the Deaf and

 7  the Blind.

 8         (5)(3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

 9  CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--

10         (a)  There is allowed a credit of 100 percent of an

11  eligible contribution against any tax due for a taxable year

12  under this chapter. However, such a credit may not exceed 75

13  percent of the tax due under this chapter for the taxable

14  year, after the application of any other allowable credits by

15  the taxpayer. However, at least 5 percent of the total

16  statewide amount authorized for the tax credit shall be

17  reserved for taxpayers who meet the definition of a small

18  business provided in s. 288.703(1) at the time of application.

19  The credit granted by this section shall be reduced by the

20  difference between the amount of federal corporate income tax

21  taking into account the credit granted by this section and the

22  amount of federal corporate income tax without application of

23  the credit granted by this section.

24         (b)  The total amount of tax credits and carryforward

25  of tax credits which may be granted each state fiscal year

26  under this section is $88 million during the 2006-2007 fiscal

27  year. In each fiscal year thereafter, if the total allowable

28  amount of the tax credit and carryforward tax credits has been

29  attained for the prior year, the total amount of tax credits

30  and carryforward of tax credits which may be granted under

31  this section shall be adjusted by the same percentage as the

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 1  increase or decrease in total funding, adjusted for Florida

 2  Retirement System changes, if applicable, under the Florida

 3  Education Finance Program as provided in work papers of the

 4  General Appropriations Act. However, the total amount of tax

 5  credits which may be granted pursuant to this paragraph may

 6  not increase by more than 5 percent in any year. The

 7  Commissioner of Education shall certify to the department and

 8  notify eligible nonprofit scholarship-funding organizations of

 9  the resulting value of tax credits that may be granted within

10  30 days after the General Appropriations Act becomes law.

11  However, at least 1 percent of the total statewide amount

12  authorized for the tax credit shall be reserved for taxpayers

13  who meet the definition of a small business provided in s.

14  288.703 at the time of application.

15         (c)  A taxpayer who files a Florida consolidated return

16  as a member of an affiliated group pursuant to s. 220.131(1)

17  may be allowed the credit on a consolidated return basis;

18  however, the total credit taken by the affiliated group is

19  subject to the limitation established under paragraph (a).

20         (d)  Effective for tax years beginning January 1, 2006,

21  or thereafter, a taxpayer may rescind all or part of its

22  allocated tax credit under this section. The amount rescinded

23  shall become available for purposes of the cap for that state

24  fiscal year under this section to an eligible taxpayer as

25  approved by the department if the taxpayer receives notice

26  from the department that the rescindment has been accepted by

27  the department and the taxpayer has not previously rescinded

28  any or all of its tax credit allocation under this section

29  more than once in the previous 3 tax years. An amount

30  rescinded under this paragraph shall become available to an

31  eligible taxpayer on a first-come, first-served basis based on

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 1  applications for tax credit received after the date the

 2  rescindment is accepted by the department.

 3         (6)(4)  OBLIGATIONS OF ELIGIBLE NONPROFIT

 4  SCHOLARSHIP-FUNDING ORGANIZATIONS.--An eligible nonprofit

 5  scholarship-funding organization:

 6         (a)  Must comply with the antidiscrimination provisions

 7  of 42 U.S.C. s. 2000d.

 8         (b)  Must comply with the following background check

 9  requirements:

10         1.  An owner, operator, or employee of an eligible

11  nonprofit scholarship-funding organization is subject to level

12  2 background screening as provided under chapter 435.  The

13  results of the level 2 background screening shall be provided

14  to the department.

15         2.  A nonprofit scholarship-funding organization whose

16  owner or operator fails the level 2 background screening is

17  ineligible to provide scholarships under this section.

18         3.  A nonprofit scholarship-funding organization's

19  continued employment of an employee after notification that

20  the employee has failed the level 2 background screening shall

21  cause the nonprofit scholarship-funding organization to be

22  ineligible for participation in the scholarship program.

23         4.  A nonprofit scholarship-funding organization whose

24  owner or operator in the last 7 years has filed for personal

25  bankruptcy or corporate bankruptcy in a corporation of which

26  he or she owned more than 20 percent is ineligible to provide

27  scholarships under this section.

28         (c)  Must not have an owner or operator who owns or

29  operates an eligible private school that is participating in

30  the scholarship program.

31  

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 1         (d)(a)  Must An eligible nonprofit scholarship-funding

 2  organization shall provide scholarships, from eligible

 3  contributions, to eligible qualified students for:

 4         1.  Tuition or textbook expenses for, or transportation

 5  to, an eligible private nonpublic school. At least 75 percent

 6  of the scholarship funding must be used to pay tuition

 7  expenses; or

 8         2.  Transportation expenses to a Florida public school

 9  that is located outside the district in which the student

10  resides or to a lab school as defined in s. 1002.32.

11         (e)(b)  Must An eligible nonprofit scholarship-funding

12  organization shall give priority to eligible qualified

13  students who received a scholarship from an eligible nonprofit

14  scholarship-funding organization during the previous school

15  year.

16         (f)  Must provide a scholarship to an eligible student

17  on a first-come, first-served basis unless the student

18  qualifies for priority pursuant to paragraph (e).

19         (g)  May not restrict or reserve scholarships for use

20  at a particular private school or provide scholarships to a

21  child of an owner or operator.

22         (h)  Must allow an eligible student to attend any

23  eligible private school and must allow a parent to transfer a

24  scholarship during a school year to any other eligible private

25  school of the parent's choice.

26         (c)  The amount of a scholarship provided to any child

27  for any single school year by all eligible nonprofit

28  scholarship-funding organizations from eligible contributions

29  shall not exceed the following annual limits:

30  

31  

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 1         1.  Three thousand five hundred dollars for a

 2  scholarship awarded to a student enrolled in an eligible

 3  nonpublic school.

 4         2.  Five hundred dollars for a scholarship awarded to a

 5  student enrolled in a Florida public school that is located

 6  outside the district in which the student resides.

 7         (d)  The amount of an eligible contribution which may

 8  be accepted by an eligible nonprofit scholarship-funding

 9  organization is limited to the amount needed to provide

10  scholarships for qualified students which the organization has

11  identified and for which vacancies in eligible nonpublic

12  schools have been identified.

13         (i)(e)  Must obligate, in the same fiscal year in which

14  the contribution was received, An eligible nonprofit

15  scholarship-funding organization that receives an eligible

16  contribution must spend 100 percent of the eligible

17  contribution to provide scholarships; however, up to 25

18  percent of the total contribution may be carried forward for

19  scholarships to be granted in the following in the same state

20  fiscal year in which the contribution was received. No portion

21  of eligible contributions may be used for administrative

22  expenses. All interest accrued from contributions must be used

23  for scholarships.

24         (j)  Must maintain separate accounts for scholarship

25  funds and operating funds.

26         (k)  With the prior approval of the Department of

27  Education, may transfer funds to another eligible nonprofit

28  scholarship-funding organization if additional funds are

29  required to meet the demand for scholarships at the receiving

30  nonprofit scholarship-funding organization. The amount of a

31  transfer is limited to the greater of $500,000 or 20 percent

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 1  of the total contributions received by the nonprofit

 2  scholarship-funding organization making the transfer. All

 3  transferred funds must be deposited by the receiving nonprofit

 4  scholarship-funding organization into its scholarship

 5  accounts. All transferred amounts received by any nonprofit

 6  scholarship-funding organization must be separately disclosed

 7  in the annual financial and compliance audit required in this

 8  section.

 9         (l)(f)  An eligible nonprofit scholarship-funding

10  organization that receives eligible contributions Must provide

11  to the Auditor General and the Department of Education an

12  annual financial and compliance audit of its accounts and

13  records conducted by an independent certified public

14  accountant and in accordance with rules adopted by the Auditor

15  General. The audit must be conducted in compliance with

16  generally accepted auditing standards and must include a

17  report on financial statements presented in accordance with

18  generally accepted accounting principles set forth by the

19  American Institute of Certified Public Accountants for

20  not-for-profit organizations and a determination of compliance

21  with the statutory eligibility and expenditure requirements

22  set forth in this section. Audits must be provided to the

23  Auditor General and the Department of Education within 180

24  days after completion of the eligible nonprofit

25  scholarship-funding organization's fiscal year.

26         (m)  Must prepare and submit quarterly reports to the

27  Department of Education pursuant to paragraph (9)(m). In

28  addition, an eligible nonprofit scholarship-funding

29  organization must timely submit any information requested by

30  the Department of Education relating to the scholarship

31  program.

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 1  

 2  Any information and documentation provided to the Department

 3  of Education and the Auditor General relating to the identity

 4  of a taxpayer that provides an eligible contribution under

 5  this section shall remain confidential at all times in

 6  accordance with s. 213.053.

 7         (g)  Payment of the scholarship by the eligible

 8  nonprofit scholarship-funding organization shall be by

 9  individual warrant or check made payable to the student's

10  parent. If the parent chooses for his or her child to attend

11  an eligible nonpublic school, the warrant or check must be

12  mailed by the eligible nonprofit scholarship-funding

13  organization to the nonpublic school of the parent's choice,

14  and the parent shall restrictively endorse the warrant or

15  check to the nonpublic school. An eligible nonprofit

16  scholarship-funding organization shall ensure that, upon

17  receipt of a scholarship warrant or check, the parent to whom

18  the warrant or check is made restrictively endorses the

19  warrant or check to the nonpublic school of the parent's

20  choice for deposit into the account of the nonpublic school.

21         (7)(5)  PARENTS' AND STUDENTS' RESPONSIBILITIES FOR

22  PROGRAM PARTICIPATION.--

23         (a)  The parent must select an eligible private school

24  and apply for the admission of his or her child.

25         (b)  The parent must inform the child's school district

26  when the parent withdraws his or her child to attend an

27  eligible private school.

28         (c)  A student participating in the scholarship program

29  must remain in attendance throughout the school year unless

30  excused by the school for illness or other good cause.

31  

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 1         (d)  Each parent and each student has an obligation to

 2  the private school to comply with the private school's

 3  published policies.

 4         (e)  The parent shall ensure that the student

 5  participating in the scholarship program takes the

 6  norm-referenced assessment offered by the private school. The

 7  parent may also choose to have the student participate in the

 8  statewide assessments pursuant to s. 1008.22. If the parent

 9  requests that the student participating in the scholarship

10  program take statewide assessments pursuant to s. 1008.22, the

11  parent is responsible for transporting the student to the

12  assessment site designated by the school district.

13         (f)  Upon receipt of a scholarship warrant or check

14  from the eligible nonprofit scholarship-funding organization,

15  the parent to whom the warrant or check is made must

16  restrictively endorse the warrant or check to the private

17  school for deposit into the account of the private school. The

18  parent may not designate any entity or individual associated

19  with the participating private school as the parent's attorney

20  in fact to sign a scholarship warrant or check. A participant

21  who fails to comply with this paragraph forfeits the

22  scholarship. PARENT OBLIGATIONS.--As a condition for

23  scholarship payment pursuant to paragraph (4)(g), if the

24  parent chooses for his or her child to attend an eligible

25  nonpublic school, the parent must inform the child's school

26  district within 15 days after such decision.

27         (8)(6)  PRIVATE ELIGIBLE NONPUBLIC SCHOOL ELIGIBILITY

28  AND OBLIGATIONS.--An eligible private nonpublic school may be

29  sectarian or nonsectarian and must:

30  

31  

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 1         (a)  Comply with all requirements for private schools

 2  participating in state school choice scholarship programs

 3  pursuant to s. 1002.421.

 4         (b)  Provide to the eligible nonprofit

 5  scholarship-funding organization, upon request, all

 6  documentation required for the student's participation,

 7  including the private school's and student's fee schedules.

 8         (c)  Be academically accountable to the parent for

 9  meeting the educational needs of the student by:

10         1.  At a minimum, annually providing to the parent a

11  written explanation of the student's progress.

12         2.  Annually administering or making provision for

13  students participating in the scholarship program to take one

14  of the nationally norm-referenced tests identified by the

15  Department of Education. Students with disabilities for whom

16  standardized testing is not appropriate are exempt from this

17  requirement. A participating private school must report a

18  student's scores to the parent and to the independent research

19  organization as described in paragraph (9)(j) selected by the

20  Department of Education.

21         3.  Cooperating with the scholarship student whose

22  parent chooses to participate in the statewide assessments

23  pursuant to s. 1008.32.

24  

25  The inability of a private school to meet the requirements of

26  this subsection shall constitute a basis for the ineligibility

27  of the private school to participate in the scholarship

28  program as determined by the Department of Education.

29         (a)  Demonstrate fiscal soundness by being in operation

30  for one school year or provide the Department of Education

31  with a statement by a certified public accountant confirming

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 1  that the nonpublic school desiring to participate is insured

 2  and the owner or owners have sufficient capital or credit to

 3  operate the school for the upcoming year serving the number of

 4  students anticipated with expected revenues from tuition and

 5  other sources that may be reasonably expected. In lieu of such

 6  a statement, a surety bond or letter of credit for the amount

 7  equal to the scholarship funds for any quarter may be filed

 8  with the department.

 9         (b)  Comply with the antidiscrimination provisions of

10  42 U.S.C. s. 2000d.

11         (c)  Meet state and local health and safety laws and

12  codes.

13         (d)  Comply with all state laws relating to general

14  regulation of nonpublic schools.

15         (9)  DEPARTMENT OF EDUCATION; OBLIGATIONS.--The

16  Department of Education shall:

17         (a)  Annually submit to the department, by March 15, a

18  list of eligible nonprofit scholarship-funding organizations

19  that meet the requirements of paragraph (2)(c).

20         (b)  Annually verify the eligibility of nonprofit

21  scholarship-funding organizations that meet the requirements

22  of paragraph (2)(c).

23         (c)  Annually verify the eligibility of private schools

24  that meet the requirements of subsection (8).

25         (d)  Annually verify the eligibility of expenditures as

26  provided in paragraph (6)(d) using the audit required by

27  paragraph (6)(l).

28         (e)  Establish a toll-free hotline that provides

29  parents and private schools with information on participation

30  in the scholarship program.

31  

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 1         (f)  Establish a procedure by which individuals may

 2  notify the Department of Education of any violation by a

 3  parent, private school, or school district of state laws

 4  relating to program participation. The Department of Education

 5  shall conduct an investigation of any written complaint of a

 6  violation of this section, or make a referral to the

 7  appropriate agency for an investigation, if the complaint is

 8  signed by the complainant and is legally sufficient. A

 9  complaint is legally sufficient if it contains ultimate facts

10  that show that a violation of this section or of any rule

11  adopted by the State Board of Education has occurred. In order

12  to determine legal sufficiency, the Department of Education

13  may require supporting information or documentation from the

14  complainant.

15         (g)  Require an annual, notarized, sworn compliance

16  statement by participating private schools certifying

17  compliance with state laws and shall retain such records.

18         (h)  Cross-check the list of participating scholarship

19  students with the public school enrollment lists to avoid

20  duplication.

21         (i)  Identify and select the nationally norm-referenced

22  tests that are comparable to the norm-referenced provisions of

23  the Florida Comprehensive Assessment Test. The State Board of

24  Education may not identify more than four norm-referenced

25  tests for use in meeting the requirements of this section.

26  However, the Department of Education may approve the use of an

27  additional assessment by the school if the school can

28  demonstrate that the assessment meets industry standards of

29  quality and comparability. The State Board of Education may

30  select the Florida Comprehensive Assessment Test as one of the

31  four tests for use in meeting such requirements.

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 1         (j)  Select an independent research organization, which

 2  may be a public or private entity or university, to which

 3  participating private schools must report the scores of

 4  participating students on the nationally norm-referenced tests

 5  administered by the private school. The independent research

 6  organization shall report annually to the Department of

 7  Education on the year-to-year improvements of participating

 8  students. The independent research organization must analyze

 9  and report student performance data in a manner that protects

10  the rights of students and parents as mandated in 20 U.S.C. s.

11  1232g, the Family Educational Rights and Privacy Act, and must

12  not disaggregate data to a level that will disclose the

13  academic level of individual students or of individual

14  schools. To the greatest possible extent, the independent

15  research organization must accumulate historical performance

16  data on students from the Department of Education and private

17  schools to describe baseline performance and to conduct

18  longitudinal studies. To minimize costs and reduce time

19  required for third-party analysis and evaluation, the

20  Department of Education shall conduct analyses of matched

21  students from public school assessment data and calculate

22  control-group learning gains using an agreed-upon methodology

23  outlined in the contract with the third-party evaluator. The

24  sharing of student data must be in accordance with 20 U.S.C.

25  1232g, the Family Educational Rights and Privacy Act, and must

26  be for the sole purpose of conducting the evaluation. All

27  parties must preserve the confidentiality of such information

28  as required by law.

29         (k)  Notify an eligible nonprofit scholarship-funding

30  organization of any of the organization's identified students

31  

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 1  who are receiving an educational scholarship pursuant to

 2  chapter 1002.

 3         (l)  Notify an eligible nonprofit scholarship-funding

 4  organization of any of the organization's identified students

 5  who are receiving a corporate income tax credit scholarship

 6  from another eligible nonprofit scholarship-funding

 7  organization.

 8         (m)  Require quarterly reports by an eligible nonprofit

 9  scholarship-funding organization regarding the number of

10  students participating in the scholarship program, the private

11  schools at which the students are enrolled, and other

12  information that the Department of Education considers

13  necessary.

14         (10)  COMMISSIONER OF EDUCATION; AUTHORITY AND

15  OBLIGATIONS.--

16         (a)  The Commissioner of Education shall deny, suspend,

17  or revoke a private school's participation in the scholarship

18  program if it is determined that the private school has failed

19  to comply with this section. However, if the noncompliance is

20  correctable within a reasonable amount of time and the health,

21  safety, and welfare of the students are not threatened, the

22  commissioner may issue a notice of noncompliance which

23  provides the private school with a timeframe within which to

24  provide evidence of compliance before taking action to suspend

25  or revoke the private school's participation in the

26  scholarship program.

27         (b)  The commissioner's determination is subject to the

28  following requirements:

29         1.  If the commissioner intends to deny, suspend, or

30  revoke a private school's participation in the scholarship

31  program, the Department of Education shall notify the private

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 1  school of such proposed action in writing sent by certified

 2  mail and regular mail to the private school's address of

 3  record with the Department of Education. The notification must

 4  include the reasons for the proposed action and notice of the

 5  timelines and procedures set forth in this paragraph.

 6         2.  The private school that is adversely affected by

 7  the proposed action shall have 15 days after receipt of the

 8  notice of proposed action to file with the Department of

 9  Education's agency clerk a request for a proceeding pursuant

10  to ss. 120.569 and 120.57. If the private school is entitled

11  to a hearing under s. 120.57(1), the Department of Education

12  shall forward the request to the Division of Administrative

13  Hearings.

14         3.  Upon receipt of a request referred pursuant to this

15  paragraph, the director of the Division of Administrative

16  Hearings shall expedite the hearing and assign an

17  administrative law judge who shall commence a hearing within

18  30 days after the receipt of the formal written request by the

19  division and enter a recommended order within 30 days after

20  the hearing or within 30 days after receipt of the hearing

21  transcript, whichever is later. Each party shall be allowed 10

22  days in which to submit written exceptions to the recommended

23  order. A final order must be entered by the agency within 30

24  days after the entry of a recommended order. The provisions of

25  this subparagraph may be waived upon stipulation by all

26  parties.

27         (c)  The commissioner may immediately suspend payment

28  of scholarship funds if it is determined that there is

29  probable cause to believe that there is:

30         1.  An imminent threat to the health, safety, and

31  welfare of the students; or

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 1         2.  Fraudulent activity on the part of the private

 2  school.

 3  

 4  The commissioner's order suspending payment pursuant to this

 5  paragraph may be appealed pursuant to the same procedures and

 6  timelines as the notice of proposed action set forth in

 7  paragraph (b).

 8         (11)  SCHOLARSHIP AMOUNT AND PAYMENT.--

 9         (a)  The amount of a scholarship provided to any

10  student for any single school year by an eligible nonprofit

11  scholarship-funding organization from eligible contributions

12  may not exceed the following annual limits:

13         1.  Three thousand seven hundred fifty dollars for a

14  scholarship awarded to a student enrolled in an eligible

15  private school.

16         2.  Five hundred dollars for a scholarship awarded to a

17  student enrolled in a Florida public school that is located

18  outside the district in which the student resides or in a lab

19  school as defined in s. 1002.32.

20         (b)  Payment of the scholarship by the eligible

21  nonprofit scholarship-funding organization must be by

22  individual warrant or check made payable to the student's

23  parent. If the parent chooses for his or her child to attend

24  an eligible private school, the warrant or check must be

25  delivered by the eligible nonprofit scholarship-funding

26  organization to the private school of the parent's choice, and

27  the parent shall restrictively endorse the warrant or check to

28  the private school. An eligible nonprofit scholarship-funding

29  organization shall ensure that the parent to whom the warrant

30  or check is made has restrictively endorsed the warrant or

31  

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 1  check to the private school for deposit into the account of

 2  the private school.

 3         (c)  An eligible nonprofit scholarship-funding

 4  organization shall obtain verification from the private school

 5  of a student's continued attendance at the school prior to

 6  each scholarship payment.

 7         (d)  Payment of the scholarship shall be made by the

 8  eligible nonprofit scholarship-funding organization no less

 9  frequently than quarterly.

10         (12)(7)  ADMINISTRATION; RULES.--

11         (a)  If the credit granted pursuant to this section is

12  not fully used in any one year because of insufficient tax

13  liability on the part of the corporation, the unused amount

14  may be carried forward for a period not to exceed 3 years;

15  however, any taxpayer that seeks to carry forward an unused

16  amount of tax credit must submit an application for allocation

17  of tax credits or carryforward credits as required in

18  paragraph (d) in the year that the taxpayer intends to use the

19  carryforward. The total amount of tax credits and carryforward

20  of tax credits granted each state fiscal year under this

21  section is $88 million. This carryforward applies to all

22  approved contributions made after January 1, 2002. A taxpayer

23  may not convey, assign, or transfer the credit authorized by

24  this section to another entity unless all of the assets of the

25  taxpayer are conveyed, assigned, or transferred in the same

26  transaction.

27         (b)  An application for a tax credit pursuant to this

28  section shall be submitted to the department on forms

29  established by rule of the department.

30         (c)  The department and the Department of Education

31  shall develop a cooperative agreement to assist in the

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 1  administration of this section. The Department of Education

 2  shall be responsible for annually submitting, by March 15, to

 3  the department a list of eligible nonprofit

 4  scholarship-funding organizations that meet the requirements

 5  of paragraph (2)(d) and for monitoring eligibility of

 6  nonprofit scholarship-funding organizations that meet the

 7  requirements of paragraph (2)(d), eligibility of nonpublic

 8  schools that meet the requirements of paragraph (2)(c), and

 9  eligibility of expenditures under this section as provided in

10  subsection (4).

11         (d)  The department shall adopt rules necessary to

12  administer this section, including rules establishing

13  application forms and procedures and governing the allocation

14  of tax credits and carryforward credits under this section on

15  a first-come, first-served basis.

16         (e)  The State Board Department of Education shall

17  adopt rules pursuant to ss. 120.536(1) and 120.54 to

18  administer this section necessary to determine eligibility of

19  nonprofit scholarship-funding organizations as defined in

20  paragraph (2)(d) and according to the provisions of subsection

21  (4) and identify qualified students as defined in paragraph

22  (2)(e).

23         (13)(8)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All

24  eligible contributions received by an eligible nonprofit

25  scholarship-funding organization shall be deposited in a

26  manner consistent with s. 17.57(2).

27         Section 3.  Section 1002.421, Florida Statutes, is

28  created to read:

29         1002.421  Rights and obligations of private schools

30  participating in state school-choice scholarship

31  programs.--Requirements of this section are in addition to

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 1  private school requirements outlined in s. 1002.42, specific

 2  requirements identified within respective scholarship program

 3  laws, and other provisions of Florida law which apply to

 4  private schools.

 5         (1)  A Florida private school participating in the

 6  Corporate Income Tax Credit Scholarship Program established

 7  pursuant to s. 220.187 or an educational scholarship program

 8  established pursuant to this chapter must comply with all

 9  requirements of this section.

10         (2)  A private school participating in a scholarship

11  program must be a Florida private school as defined in s.

12  1002.01 and must:

13         (a)  Be a registered Florida private school in

14  accordance with s. 1002.42.

15         (b)  Comply with antidiscrimination provisions of 42

16  U.S.C. s. 2000d.

17         (c)  Notify the department of its intent to participate

18  in a scholarship program.

19         (d)  Notify the department of any change in the

20  school's name, school director, mailing address, or physical

21  location within 15 days after the change.

22         (e)  Complete student-enrollment and

23  attendance-verification requirements, including use of an

24  on-line attendance-verification form, prior to scholarship

25  payment.

26         (f)  Annually complete and submit to the department a

27  notarized scholarship compliance statement certifying that all

28  employees of the school have undergone background screening

29  pursuant to s. 943.0542.

30         (g)  Demonstrate fiscal soundness and accountability

31  by:

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 1         1.  Being in operation for at least 3 school years or

 2  obtaining a surety bond or letter of credit for the amount

 3  equal to the scholarship funds for any quarter and filing the

 4  surety bond or letter of credit with the department.

 5         2.  Requiring the parent of each scholarship student to

 6  personally restrictively endorse the scholarship warrant to

 7  the school. The school may not act as attorney in fact for the

 8  parent of a scholarship student under the authority of a power

 9  of attorney executed by such a parent, or under any other

10  authority, to endorse scholarship warrants on behalf of such a

11  parent.

12         (h)  Meet applicable state and local health, safety,

13  and welfare laws, codes, and rules, including those relating

14  to:

15         1.  Fire safety.

16         2.  Building safety.

17         (i)  Employ or contract with teachers who hold

18  baccalaureate or higher degrees, have at least 3 years of

19  teaching experience in public or private schools, or have

20  special skills, knowledge, or expertise that qualifies them to

21  provide instruction in subjects taught.

22         (j)  Require each individual having direct student

23  contact with a scholarship student to undergo a state and

24  national background screening pursuant to s. 943.0542, by

25  filing with the Department of Law Enforcement a complete set

26  of fingerprints taken by an authorized law enforcement agency

27  or an employee of the private school, a school district, or a

28  private company who is trained to take fingerprints; to be

29  denied employment or terminated if required under s. 435.06;

30  and not to be ineligible to teach in a public school because

31  

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 1  his or her educator certificate is suspended or revoked. For

 2  purposes of this paragraph:

 3         1.  The term "individual having direct student contact"

 4  means any individual who has unsupervised access to a

 5  scholarship student for whom the private school is

 6  responsible.

 7         2.  The costs of fingerprinting and the background

 8  check shall not be borne by the state.

 9         3.  Continued employment of an individual after

10  notification that the individual has failed the background

11  screening under this paragraph shall cause a private school to

12  be ineligible for participation in a scholarship program.

13         4.  An individual holding a valid Florida teaching

14  certificate who has been fingerprinted pursuant to s. 1012.32

15  need not comply with this paragraph.

16         (3)  The inability of a private school to meet the

17  requirements of this section shall constitute a basis for the

18  ineligibility of the private school to participate in a

19  scholarship program as determined by the department.

20         (4)  The inclusion of eligible private schools within

21  options available to Florida public school students does not

22  expand the regulatory authority of the state, its officers, or

23  any school district to impose any additional regulation of

24  private schools beyond those reasonably necessary to enforce

25  requirements expressly set forth in this section.

26         (5)  The State Board of Education shall adopt rules

27  pursuant to ss. 120.536(1) and 120.54 to administer this

28  section.

29         Section 4.  Section 1002.422, Florida Statutes, is

30  created to read:

31  

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 1         1002.422  Background screening for private schools

 2  participating in the John M. McKay Scholarships for Students

 3  with Disabilities Program and the Corporate Income Tax Credit

 4  Scholarship Program.--

 5         (1)  Subject to appropriation, the Department of Law

 6  Enforcement shall purchase a high-speed electronic fingerprint

 7  scanner and provide sufficient staff support to conduct state

 8  and national background fingerprint screening for private

 9  schools participating in the John M. McKay Scholarships for

10  Students with Disabilities Program and the Corporate Income

11  Tax Credit Scholarship Program. Within 90 days after

12  acquisition of the scanner, state and national background

13  fingerprint screening shall be required for all employees who

14  have direct contact with students in the private schools

15  participating in the scholarship programs. Results of the

16  screening shall be provided to the participating private

17  schools.

18         (2)  Beginning July 1, 2007, all fingerprints submitted

19  to the Department of Law Enforcement as required by s.

20  1002.421(2)(j) shall be retained by the Department of Law

21  Enforcement in a manner provided by rule and entered in the

22  statewide automated fingerprint identification system

23  authorized by s. 943.05(2)(b). Such fingerprints shall

24  thereafter be available for all purposes and uses authorized

25  for arrest fingerprint cards entered in the statewide

26  automated fingerprint identification system pursuant to s.

27  943.051.

28         (3)  Beginning July 1, 2007, the Department of Law

29  Enforcement shall search all arrest fingerprint cards received

30  under s. 943.051 against the fingerprints retained in the

31  statewide automated fingerprint identification system under

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 1  subsection (2). Any arrest record that is identified with the

 2  retained fingerprints of a person subject to the background

 3  screening under this section shall be reported to the

 4  employing school with which the person is affiliated. Each

 5  private school participating in the John M. McKay Scholarships

 6  for Students with Disabilities Program and the Corporate

 7  Income Tax Credit Scholarship Program must participate in this

 8  search process by informing the Department of Law Enforcement

 9  of any change in the employment status of its personnel whose

10  fingerprints are retained under subsection (2). The Department

11  of Law Enforcement shall adopt a rule setting the amount of

12  the annual fee to be imposed upon each private school for

13  performing these searches and establishing the procedures for

14  the retention of private school employees' fingerprints and

15  the dissemination of search results. The fee may be borne by

16  the private school or the person who is fingerprinted.

17         (4)  Personnel whose fingerprints are not retained by

18  the Department of Law Enforcement under subsections (2) and

19  (3) must be refingerprinted and must meet state and national

20  background screening requirements upon reemployment or

21  reengagement to provide services in order to comply with this

22  section.

23         Section 5.  This act shall take effect July 1, 2006.

24  

25  

26  

27  

28  

29  

30  

31  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Pertains to accountability requirements for scholarship
      programs, including the John M. McKay Scholarships for
 4    Students with Disabilities Program, credits for
      contributions to nonprofit scholarship-funding
 5    organizations, the Corporate Income Tax Credit
      Scholarship Program, and state school choice scholarship
 6    programs. Provides duties and obligations of the
      Commissioner of Education, of participating parents and
 7    students, participating private schools,
      scholarship-funding organizations, and the Department of
 8    Education. (See bill for details.)

 9  

10  

11  

12  

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14  

15  

16  

17  

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19  

20  

21  

22  

23  

24  

25  

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