Senate Bill sb2234c2

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    Florida Senate - 2006                    CS for CS for SB 2234

    By the Committees on Education; and Judiciary





    581-2277-06

  1                      A bill to be entitled

  2         An act relating to education; creating s.

  3         1008.3455, F.S.; expressing the intent of the

  4         Legislature to create a program to enhance

  5         failing schools; requiring the Commissioner of

  6         Education to develop and submit such a program

  7         to the Legislature; prescribing elements of the

  8         program; requiring the creation of an advisory

  9         committee; requiring consultation with

10         specified entities; requiring an annual report;

11         amending s. 220.187, F.S.; clarifying that the

12         tax credit program applies to students in

13         families having limited financial resources;

14         providing scholarship eligibility to students

15         receiving opportunity scholarships during the

16         2005-2006 school year for a limited amount of

17         time; providing that a scholarship funding

18         organization may be approved to provide

19         scholarships under two tax credit programs;

20         requiring separate accounting; authorizing

21         scholarship funding organizations to transfer

22         surplus funds between two programs under

23         specified circumstances; creating s. 220.1875,

24         F.S.; providing a purpose; defining terms;

25         prescribing obligations of school districts to

26         inform parents about failing schools;

27         authorizing students at such schools to attend

28         a high-performing school in the same district;

29         providing a credit against the corporate income

30         tax for contributions to nonprofit

31         scholarship-funding organizations; providing

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 1         limitations; providing for use of such

 2         contributions for scholarships for students

 3         attending certain failing schools to attend

 4         nonpublic schools or public schools in adjacent

 5         districts; providing requirements and

 6         limitations with respect to scholarships;

 7         providing for payment; establishing eligibility

 8         for nonpublic school participation; providing

 9         for administration by the Department of Revenue

10         and the Department of Education; providing for

11         rules; providing requirements for deposit of

12         eligible contributions; amending s. 213.053,

13         F.S.; conforming provisions to the creation of

14         the tax credit scholarship program for families

15         of students in failing schools; authorizing the

16         Department of Revenue to share certain tax

17         information with the Department of Education;

18         amending s. 220.02, F.S.; revising legislative

19         intent with respect to the order in which

20         corporate income tax credits are applied to

21         conform to the creation of the tax credit

22         scholarship program for families of students in

23         failing schools; amending s. 220.13, F.S.;

24         revising the definition of the term "adjusted

25         federal income" to account for the creation of

26         the tax credit scholarship program for families

27         of students in failing schools; providing for

28         the credit to be an addition to taxable income;

29         amending s. 220.701, F.S.; directing the

30         Department of Revenue to deposit moneys

31         received through the corporate income tax into

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 1         the Corporate Income Tax Trust Fund rather than

 2         the General Revenue Fund; amending s. 1001.10,

 3         F.S.; conforming provisions to the repeal of

 4         the Opportunity Scholarship Program;

 5         authorizing the Commissioner of Education to

 6         prepare and publish reports related to

 7         specified tax credit programs; amending ss.

 8         1001.42 and 1002.20, F.S.; conforming

 9         provisions to the repeal of the Opportunity

10         Scholarship Program and the creation of the tax

11         credit program for families of students

12         attending schools failing to make adequate

13         progress; repealing s. 1002.38, F.S., which

14         authorizes the Opportunity Scholarship Program;

15         amending s. 1002.39, F.S., to conform to the

16         repeal of the Opportunity Scholarship Program;

17         providing an effective date.

18  

19         WHEREAS, education is a fundamental value and a

20  paramount duty of the state, and

21         WHEREAS, the State Constitution requires the state to

22  provide for the free education of all children residing within

23  its borders, and

24         WHEREAS, the Florida Supreme Court held in Bush v.

25  Holmes, 2006 WL 20584 (Fla.), 31 Fla. L. Weekly S1, that the

26  state must provide a system of uniform, efficient, safe,

27  secure, and high-quality public schools to fulfill this

28  constitutional requirement, and

29         WHEREAS, the Florida Supreme Court invalidated the

30  Opportunity Scholarship Program because it allowed state funds

31  to be disbursed to private schools, and

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 1         WHEREAS, the Legislature created the Opportunity

 2  Scholarship Program to ensure that all children have a chance

 3  to gain the knowledge and skills they need to succeed, and

 4         WHEREAS, the state is committed to improving the

 5  quality of the education provided by the public school system,

 6  and

 7         WHEREAS, there are some public schools that continue to

 8  fail to make adequate progress based on the school performance

 9  grading categories established by law, and

10         WHEREAS, respecting the constitutional mandate cited by

11  the Florida Supreme Court, the Legislature intends for the

12  state to develop and implement a comprehensive strategic

13  program to facilitate the improvement of schools that are

14  failing to make adequate progress, and

15         WHEREAS, facilitating the improvement in the

16  performance of these schools is a multiyear endeavor, and

17  progress will occur over an extended period of time, and

18         WHEREAS, students assigned to schools that are failing

19  to make adequate progress should have the choice of attending

20  a higher-performing school while the state continues to

21  facilitate the improvement of these schools, and

22         WHEREAS, the Legislature intends to create a program to

23  provide an educational safety net to students assigned to

24  these schools, distinct from and without impeding the efforts

25  to help these schools improve, NOW, THEREFORE,

26  

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

28  

29         Section 1.  Section 1008.3455, Florida Statutes, is

30  created to read:

31  

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 1         1008.3455  Improvement program for schools failing to

 2  make adequate progress.--

 3         (1)  It is the intent of the Legislature that the state

 4  develop and implement a comprehensive strategic program to

 5  facilitate the improvement of schools that are failing to make

 6  adequate progress based on the school performance grading

 7  categories established by law. The Legislature finds that

 8  achieving meaningful and lasting progress in these schools

 9  will take a number of years. Thus, it is the further intent of

10  the Legislature that the program developed under this section

11  include a multiyear design and implementation schedule, with

12  measurable goals and objectives for these schools.

13         (2)  In coordination with the responsibilities

14  prescribed in s. 1008.345, the Commissioner of Education shall

15  develop and submit to the President of the Senate and the

16  Speaker of the House of Representatives, no later than

17  February 1, 2007, a multifaceted program of policies and

18  practices targeted specifically toward schools in the "F"

19  grade category under s. 1008.34.

20         (a)  At a minimum, the program must include an

21  assessment of the extent to which new policies, or

22  enhancements to existing policies, in the following areas

23  would facilitate improvement at these schools:

24         1.  Capital improvements to school facilities;

25         2.  Salaries for teachers and staff;

26         3.  Incentives for outstanding faculty and staff to

27  transfer to these schools;

28         4.  Equipment and supplies;

29         5.  Technology infrastructure, hardware, or software;

30         6.  Incentives to encourage parental or other family

31  participation; and

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 1         7.  Mentoring and other community participation.

 2         (b)  The program must include a suggested order of

 3  priority and timeline for enacting, funding, and implementing

 4  policies and practices over a 5-year period.  The program

 5  shall identify those elements of the program which can be

 6  accomplished within existing statutory authority and those

 7  elements that will require new statutory authority.  The

 8  program must include specific recommendations for action by

 9  the Legislature.

10         (3)(a)  To assist in development and implementation of

11  the program required by this section, the commissioner shall

12  create an advisory committee comprised of at least two

13  teachers, two staff persons, and two parents of students from

14  one or more schools that are failing to make adequate progress

15  based on the school performance grading categories, as well as

16  any other individuals the commissioner deems appropriate.

17         (b)  In developing and implementing the program, the

18  commissioner shall consult with:

19         1.    The Office of Program Policy Analysis and

20  Government Accountability; and

21         2.  The district community assessment teams assigned

22  under s. 1008.345.

23         (4)  The program shall be developed in coordination

24  with, and shall be consistent with, other strategic planning

25  initiatives of the Department of Education or the State Board

26  of Education.

27         (5)  The commissioner shall report annually to the

28  Governor, the President of the Senate, and the Speaker of the

29  House of Representatives on implementation of the program.

30         Section 2.  Section 220.187, Florida Statutes, is

31  amended to read:

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 1         220.187  Credits for contributions to nonprofit

 2  scholarship-funding organizations; families that have limited

 3  financial resources.--

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

 5         (a)  Encourage private, voluntary contributions to

 6  nonprofit scholarship-funding organizations.

 7         (b)  Expand educational opportunities for children of

 8  families that have limited financial resources.

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

10  level of excellence in their education.

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

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

13         (b)  "Eligible contribution" means a monetary

14  contribution from a taxpayer, subject to the restrictions

15  provided in this section, to an eligible nonprofit

16  scholarship-funding organization. The taxpayer making the

17  contribution may not designate a specific child as the

18  beneficiary of the contribution. The taxpayer may not

19  contribute more than $5 million to any single eligible

20  nonprofit scholarship-funding organization.

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

22  school located in Florida that offers an education to students

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

24  subsection (6).

25         (d)  "Eligible nonprofit scholarship-funding

26  organization" means a charitable organization that is exempt

27  from federal income tax pursuant to s. 501(c)(3) of the

28  Internal Revenue Code and that complies with the provisions of

29  subsection (4). An eligible nonprofit scholarship-funding

30  organization that is authorized to provide scholarships under

31  s. 220.1875 may, subject to approval by the Department of

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 1  Education, be authorized to provide scholarships under this

 2  section.

 3         (e)  "Qualified student" means:

 4         1.  A student who qualifies for free or reduced-price

 5  school lunches under the National School Lunch Act and who:

 6         a.1.  Was counted as a full-time equivalent student

 7  during the previous state fiscal year for purposes of state

 8  per-student funding;

 9         b.2.  Received a scholarship from an eligible nonprofit

10  scholarship-funding organization during the previous school

11  year; or

12         c.3.  Is eligible to enter kindergarten or first grade.

13         2.  A student who does not qualify under subparagraph

14  1. but who received an opportunity scholarship under former s.

15  1002.38 during the final quarter of the 2005-2006 school year.

16  Students qualified under this subparagraph may receive

17  scholarships under this section until the scholarship program

18  under s. 220.1875 is fully implemented, subject to the

19  limitations provided in s. 220.1875(8).

20         (3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

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

23  eligible contribution against any tax due for a taxable year

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

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

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

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

28  statewide amount authorized for the tax credit shall be

29  reserved for taxpayers who meet the definition of a small

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

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

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 1  difference between the amount of federal corporate income tax

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

 3  amount of federal corporate income tax without application of

 4  the credit granted by this section.

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

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

 7  under this section is $88 million.

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

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

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

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

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

13         (4)  OBLIGATIONS OF ELIGIBLE NONPROFIT

14  SCHOLARSHIP-FUNDING ORGANIZATIONS.--

15         (a)  An eligible nonprofit scholarship-funding

16  organization shall provide scholarships, from eligible

17  contributions, to qualified students for:

18         1.  Tuition or textbook expenses for, or transportation

19  to, an eligible nonpublic school. At least 75 percent of the

20  scholarship funding must be used to pay tuition expenses; or

21         2.  Transportation expenses to a Florida public school

22  that is located outside the district in which the student

23  resides.

24         (b)  An eligible nonprofit scholarship-funding

25  organization shall give priority to qualified students who

26  received a scholarship from an eligible nonprofit

27  scholarship-funding organization during the previous school

28  year or who received an opportunity scholarship under former

29  s. 1002.38 during the final quarter of the 2005-2006 school

30  year.

31  

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

 2  for any single school year by all eligible nonprofit

 3  scholarship-funding organizations from eligible contributions

 4  shall not exceed the following annual limits:

 5         1.  Three thousand five hundred dollars for a

 6  scholarship awarded to a student enrolled in an eligible

 7  nonpublic school.

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

 9  student enrolled in a Florida public school that is located

10  outside the district in which the student resides.

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

12  be accepted by an eligible nonprofit scholarship-funding

13  organization is limited to the amount needed to provide

14  scholarships for qualified students which the organization has

15  identified and for which vacancies in eligible nonpublic

16  schools have been identified.

17         (e)  An eligible nonprofit scholarship-funding

18  organization that receives an eligible contribution must spend

19  100 percent of the eligible contribution to provide

20  scholarships in the same state fiscal year in which the

21  contribution was received. No portion of eligible

22  contributions may be used for administrative expenses. All

23  interest accrued from contributions must be used for

24  scholarships.

25         (f)  An eligible nonprofit scholarship-funding

26  organization that receives eligible contributions must provide

27  to the Auditor General an annual financial and compliance

28  audit of its accounts and records conducted by an independent

29  certified public accountant and in accordance with rules

30  adopted by the Auditor General.

31  

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 1         (g)  Payment of the scholarship by the eligible

 2  nonprofit scholarship-funding organization shall be by

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

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

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

 6  mailed by the eligible nonprofit scholarship-funding

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

 8  and the parent shall restrictively endorse the warrant or

 9  check to the nonpublic school. An eligible nonprofit

10  scholarship-funding organization shall ensure that, upon

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

12  the warrant or check is made restrictively endorses the

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

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

15         (5)  PARENT OBLIGATIONS.--As a condition for

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

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

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

19  district within 15 days after such decision.

20         (6)  ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An

21  eligible nonpublic school must:

22         (a)  Demonstrate fiscal soundness by being in operation

23  for one school year or provide the Department of Education

24  with a statement by a certified public accountant confirming

25  that the nonpublic school desiring to participate is insured

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

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

28  students anticipated with expected revenues from tuition and

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

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

31  

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

 2  with the department.

 3         (b)  Comply with the antidiscrimination provisions of

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

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

 6  codes.

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

 8  regulation of nonpublic schools.

 9         (7)  ADMINISTRATION; RULES.--

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

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

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

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

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

15  amount of tax credit must submit an application for allocation

16  of tax credits or carryforward credits as required in

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

18  carryforward. The total amount of tax credits and carryforward

19  of tax credits granted each state fiscal year under this

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

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

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

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

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

25  transaction.

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

27  section shall be submitted to the department on forms

28  established by rule of the department.

29         (c)  The department and the Department of Education

30  shall develop a cooperative agreement to assist in the

31  administration of this section. The Department of Education

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

 2  the department a list of eligible nonprofit

 3  scholarship-funding organizations that meet the requirements

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

 5  nonprofit scholarship-funding organizations that meet the

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

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

 8  eligibility of expenditures under this section as provided in

 9  subsection (4).

10         (d)  The department shall adopt rules necessary to

11  administer this section, including rules establishing

12  application forms and procedures and governing the allocation

13  of tax credits and carryforward credits under this section on

14  a first-come, first-served basis.

15         (e)  The State Board Department of Education shall

16  adopt rules necessary to determine eligibility of nonprofit

17  scholarship-funding organizations as defined in paragraph

18  (2)(d) and according to the provisions of subsection (4) and

19  identify qualified students as defined in paragraph (2)(e).

20         (8)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--

21         (a)  All eligible contributions received by an eligible

22  nonprofit scholarship-funding organization shall be deposited

23  in a manner consistent with s. 17.57(2).

24         (b)  A nonprofit scholarship-funding organization that

25  is authorized to receive donations and distribute scholarships

26  under this section and s. 220.1875 shall account for donations

27  and scholarships separately by each tax credit program. If, in

28  a single fiscal year, the amount of donations available for

29  distribution as scholarships in one program exceeds the demand

30  for scholarships under that program for that fiscal year, the

31  organization may, with approval from the Department of

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 1  Education, apply those surplus funds to meet demand in the

 2  other program.

 3         Section 3.  Section 220.1875, Florida Statutes, is

 4  created to read:

 5         220.1875  Credits for contributions to nonprofit

 6  scholarship-funding organizations; families of students

 7  attending schools failing to make adequate progress.--

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

 9         (a)  Ensure that, while the state is implementing a

10  multiyear, comprehensive strategic program to facilitate the

11  improvement of schools that are failing to make adequate

12  progress based on school performance grading categories,

13  students attending failing schools are not denied the

14  opportunity to gain the knowledge and skills necessary for

15  postsecondary education, a career education, or the world of

16  work.

17         (b)  Enable the state to fulfill the responsibility, as

18  articulated by voters in 1998 through an amendment to s. 1,

19  Art. IX of the State Constitution, to make education a

20  paramount duty of the state.

21         (c)  Complement the constitutional requirement to

22  provide a uniform, efficient, safe, secure, and high-quality

23  system of free public schools by providing educational

24  opportunities to students attending failing public schools

25  without impeding the ability of those schools to improve.

26         (d)  Encourage private, voluntary contributions to

27  nonprofit scholarship-funding organizations.

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 which offers an education to

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

10  subsection (9).

11         (d)  "Eligible nonprofit scholarship-funding

12  organization" means a charitable organization as defined in s.

13  220.187(2)(d) which is exempt from federal income tax pursuant

14  to s. 501(c)(3) of the Internal Revenue Code and complies with

15  the provisions of subsection (5).  An eligible nonprofit

16  scholarship-funding organization that is authorized to provide

17  scholarships under s. 220.187 may, subject to approval by the

18  Department of Education, be authorized to provide scholarships

19  under this section.

20         (e)  "Qualified student" means a student who:

21         1.  Has spent the prior school year in attendance at a

22  public school that has been designated under s. 1008.34 as

23  performance grade category "F," failing to make adequate

24  progress, and that has had 2 school years in a 4-year period

25  of such low performance, and the student's attendance occurred

26  during a school year in which such designation was in effect;

27         2.  Has been in attendance elsewhere in the public

28  school system and has been assigned to such school for the

29  next school year; or

30  

31  

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 1         3.  Is entering kindergarten or first grade and has

 2  been notified that the student has been assigned to such

 3  school for the next school year.

 4  

 5  The provisions of this section do not apply to a student who

 6  is enrolled in a school operating for the purpose of providing

 7  educational services to youth in commitment programs of the

 8  Department of Juvenile Justice.

 9         (3)  SCHOOL DISTRICT OBLIGATIONS.--

10         (a)  A school district shall, for each student enrolled

11  in or assigned to a school which has been designated as

12  performance grade category "F" for 2 school years in a 4-year

13  period:

14         1.  Timely notify the parent of the student as soon as

15  such designation is made of all options available pursuant to

16  this section;

17         2.  Offer that student's parent an opportunity to

18  enroll the student in another public school within the

19  district which has been designated by the state pursuant to s.

20  1008.34 as a school performing higher than the school in which

21  the student is currently enrolled or to which the student has

22  been assigned, but not less than performance grade category

23  "C"; and

24         3.  Inform that student's parent of the child's

25  eligibility to receive a scholarship under this section to

26  enroll the student in and transport the student to attend a

27  public school outside the district which has been designated

28  by the state pursuant to s. 1008.34 as a school performing

29  higher than that in which the student is currently enrolled or

30  to which the student has been assigned, but not less than

31  

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 1  performance grade category "C," or to attend an eligible

 2  nonpublic school.

 3         (b)  A higher-performing public school that has

 4  available space in an adjacent school district shall accept

 5  students qualified under this section and report the students

 6  for purposes of the district's funding pursuant to the Florida

 7  Education Finance Program.

 8         (c)  For students in the school district who are

 9  attending nonpublic schools under this section, the school

10  district shall provide locations and times to take all

11  statewide assessments required pursuant to s. 1008.22.

12         (d)  Students with disabilities who are eligible to

13  receive services from the school district under federal or

14  state law, and who receive a scholarship under this section,

15  remain eligible to receive services from the school district

16  as provided by federal or state law.

17         (4)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

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

20  eligible contribution against any tax due for a taxable year

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

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

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

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

25  statewide amount authorized for the tax credit shall be

26  reserved for taxpayers who meet the definition of a small

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

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

29  difference between the amount of federal corporate income tax,

30  taking into account the credit granted by this section, and

31  

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 1  the amount of federal corporate income tax without application

 2  of the credit granted by this section.

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

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

 5  under this section is $5 million.

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

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

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

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

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

11         (5)  OBLIGATIONS OF ELIGIBLE NONPROFIT

12  SCHOLARSHIP-FUNDING ORGANIZATIONS.--

13         (a)  An eligible nonprofit scholarship-funding

14  organization shall provide scholarships, from eligible

15  contributions, to qualified students for:

16         1.  Tuition and fees for a qualified student enrolled

17  in an eligible nonpublic school.

18         2.  Transportation expenses to a Florida public school

19  that is located outside the district in which the qualified

20  student resides.

21         (b)  For continuity of educational choice, an eligible

22  nonprofit scholarship-funding organization shall give priority

23  to qualified students who received a scholarship to attend an

24  eligible nonpublic school during the previous school year.

25         (c)  The amount of a scholarship provided to any

26  qualified student for any single school year by all eligible

27  nonprofit scholarship-funding organizations from eligible

28  contributions may not exceed the following annual limits:

29         1.  For qualified students who choose to attend an

30  eligible nonpublic school, the lesser of:

31  

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 1         a.  The student's tuition and fees to attend an

 2  eligible nonpublic school; or

 3         b.  A calculated amount equivalent to the base student

 4  allocation in the Florida Education Finance Program multiplied

 5  by the appropriate cost factor for the educational program

 6  that will be provided for the student in the district school

 7  to which he or she is assigned, multiplied by the district

 8  cost differential. In addition, the calculated amount shall

 9  include the per-student share of instructional materials

10  funds, technology funds, and other categorical funds.

11         2.  For qualified students who choose to attend a

12  higher-performing public school that is located outside the

13  district in which the student resides, $500.

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

15  be accepted by an eligible nonprofit scholarship-funding

16  organization is limited to the amount needed to provide

17  scholarships for qualified students which the organization has

18  identified and for which vacancies in eligible nonpublic

19  schools have been identified.

20         (e)  An eligible nonprofit scholarship-funding

21  organization that receives an eligible contribution must spend

22  100 percent of the eligible contribution to provide

23  scholarships in the same state fiscal year in which the

24  contribution was received. No portion of eligible

25  contributions may be used for administrative expenses. All

26  interest accrued from contributions must be used for

27  scholarships.

28         (f)  An eligible nonprofit scholarship-funding

29  organization that receives eligible contributions must provide

30  to the Auditor General an annual financial and compliance

31  audit of its accounts and records conducted by an independent

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 1  certified public accountant and in accordance with rules

 2  adopted by the Auditor General.

 3         (g)  Payment of the scholarship by the eligible

 4  nonprofit scholarship-funding organization shall be by

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

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

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

 8  mailed by the eligible nonprofit scholarship-funding

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

10  and the parent shall restrictively endorse the warrant or

11  check to the nonpublic school. An eligible nonprofit

12  scholarship-funding organization shall ensure that, upon

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

14  the warrant or check is made restrictively endorses the

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

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

17         (6)  PARENT OBLIGATIONS.--As a condition for

18  scholarship payment pursuant to paragraph (5)(g), if the

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

20  nonpublic school, the parent must:

21         (a)  Obtain acceptance for admission of the student to

22  an eligible nonpublic school and inform the child's school

23  district within 15 days after receiving acceptance;

24         (b)  Comply fully with the nonpublic school's

25  parental-involvement requirements, unless excused by the

26  school for illness or other good cause; and

27         (c)  Ensure that the student receiving a scholarship

28  under this section takes all statewide assessments required

29  pursuant to s. 1008.22.

30         (7)  STUDENT OBLIGATIONS.--As a condition for

31  scholarship payment pursuant to paragraph (5)(g), if the

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

 2  nonpublic school, the student must remain in attendance

 3  throughout the school year, unless excused by the school for

 4  illness or other good cause, and must comply fully with the

 5  school's code of conduct.

 6         (8)  DURATION OF SCHOLARSHIP.--

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

 8  a scholarship granted under this section shall remain in force

 9  until the student returns to the pubic school to which the

10  student was originally assigned, or:

11         1.  If the student is in grades kindergarten through

12  five, until the student matriculates to the sixth grade and

13  the public middle school to which the student is assigned is

14  an accredited school that has a performance grade category

15  designation of "C" or better;

16         2.  If the student is in grades six through eight,

17  until the student matriculates to high school and the public

18  high school to which the student is assigned is an accredited

19  school that has a performance grade category designation of

20  "C" or better.

21  

22  At any time upon reasonable notice to the Department of

23  Education and the school district, the student's parent may

24  remove the student from the nonpublic school and place the

25  student in a public school, as provided in subparagraph

26  (3)(a)2.

27         (b)  A school from which a student transfers using a

28  scholarship under this section may continue to report the

29  student for the purpose of the district's funding pursuant to

30  the Florida Education Finance Program for the remainder of the

31  period during which the student would have attended that

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 1  school.  The district shall provide the funding associated

 2  with that student directly to the respective public school.

 3  The school may not report the student under this paragraph

 4  beyond the period after which the student would have

 5  matriculated to another school.

 6         (9)  ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An

 7  eligible nonpublic school must:

 8         (a)  Demonstrate fiscal soundness by being in operation

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

10  a statement by a certified public accountant confirming that

11  the nonpublic school desiring to participate is insured and

12  the owner or owners have sufficient capital or credit to

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

14  students anticipated with expected revenues from tuition and

15  other sources which may be reasonably expected. In lieu of

16  such a statement, a surety bond or letter of credit for the

17  amount equal to the scholarship funds for any quarter may be

18  filed with the department.

19         (b)  Notify the Department of Education, the school

20  district in whose service area the school is located, and all

21  eligible nonprofit scholarship funding organizations of its

22  intent to participate in the program under this section by May

23  1 of the school year preceding the school year in which it

24  intends to participate. The notice must specify the grade

25  levels and services that the private school has available for

26  qualified students under this section.

27         (c)  Comply with the antidiscrimination provisions of

28  42 U.S.C. s. 2000d.

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

30  codes.

31  

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 1         (e)  Comply with all state laws relating to general

 2  regulation of nonpublic schools.

 3         (f)  Accept scholarship students on an entirely random

 4  and religious-neutral basis without regard to the student's

 5  past academic history; however, the nonpublic school may give

 6  preference in accepting applications to siblings of students

 7  who have already been accepted on a random and

 8  religious-neutral basis.

 9         (g)  Be subject to the instruction, curriculum, and

10  attendance criteria adopted by an appropriate nonpublic school

11  accrediting body and be academically accountable to the parent

12  for meeting the educational needs of the student. The

13  nonpublic school must furnish a school profile that includes

14  student performance.

15         (h)  Employ or contract with teachers who hold a

16  baccalaureate or higher degree, have at least 3 years of

17  teaching experience in public or private schools, or have

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

19  provide instruction in subjects taught.

20         (i)  Comply with all state statutes relating to private

21  schools.

22         (j)  Accept as full tuition and fees the amount

23  provided by the state nonprofit scholarship-funding

24  organization for each student.

25         (k)  Agree not to compel any student attending the

26  private school under this section to profess a specific

27  ideological belief, to pray, or to worship.

28         (l)  Adhere to the tenets of its published disciplinary

29  procedures prior to the expulsion of any student attending the

30  private school under this section.

31         (10)  ADMINISTRATION; RULES.--

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

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

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

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

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

 6  amount of tax credit must submit an application for allocation

 7  of tax credits or carryforward credits as required in

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

 9  carryforward. The total amount of tax credits and carryforward

10  of tax credits granted each state fiscal year under this

11  section is $5 million. A taxpayer may not convey, assign, or

12  transfer the credit authorized by this section to another

13  entity unless all of the assets of the taxpayer are conveyed,

14  assigned, or transferred in the same transaction.

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

16  section shall be submitted to the department on forms

17  established by rule of the department.

18         (c)  The department and the Department of Education

19  shall develop a cooperative agreement to assist in the

20  administration of this section. The Department of Education

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

22  the department a list of eligible nonprofit

23  scholarship-funding organizations that meet the requirements

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

25  nonprofit scholarship-funding organizations that meet the

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

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

28  eligibility of expenditures under this section as provided in

29  subsection (5).

30         (d)  The department shall adopt rules pursuant to ss.

31  120.536(1) and 120.54 as necessary to administer this section,

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 1  including rules establishing application forms and procedures

 2  and governing the allocation of tax credits and carryforward

 3  credits under this section on a first-come, first-served

 4  basis.

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

 6  pursuant to ss. 120.536(1) and 120.54 as necessary to

 7  determine the eligibility of nonprofit scholarship-funding

 8  organizations as defined in paragraph (2)(d) and according to

 9  the provisions of subsection (5) and identify qualified

10  students as defined in paragraph (2)(e).

11         (11)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--

12         (a)  All eligible contributions received by an eligible

13  nonprofit scholarship-funding organization shall be deposited

14  in a manner consistent with s. 17.57(2).

15         (b)  A nonprofit scholarship-funding organization that

16  is authorized to receive donations and distribute scholarships

17  under this section and s. 220.187 shall account for donations

18  and scholarships separately by each tax credit program.  If,

19  in a single fiscal year, the amount of donations available for

20  distribution as scholarships in one program exceeds the demand

21  for scholarships under that program for that fiscal year, the

22  organization may, with approval from the Department of

23  Education, apply those surplus funds to meet demand in the

24  other program.

25         Section 4.  Paragraph (y) is added to subsection (7) of

26  section 213.053, Florida Statutes, to read:

27         213.053  Confidentiality and information sharing.--

28         (7)  Notwithstanding any other provision of this

29  section, the department may provide:

30  

31  

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 1         (y)  Information relative to s. 220.1875 to the

 2  Department of Education in the conduct of its official

 3  business.

 4  

 5  Disclosure of information under this subsection shall be

 6  pursuant to a written agreement between the executive director

 7  and the agency.  Such agencies, governmental or

 8  nongovernmental, shall be bound by the same requirements of

 9  confidentiality as the Department of Revenue.  Breach of

10  confidentiality is a misdemeanor of the first degree,

11  punishable as provided by s. 775.082 or s. 775.083.

12         Section 5.  Subsection (8) of section 220.02, Florida

13  Statutes, is amended to read:

14         220.02  Legislative intent.--

15         (8)  It is the intent of the Legislature that credits

16  against either the corporate income tax or the franchise tax

17  be applied in the following order: those enumerated in s.

18  631.828, those enumerated in s. 220.191, those enumerated in

19  s. 220.181, those enumerated in s. 220.183, those enumerated

20  in s. 220.182, those enumerated in s. 220.1895, those

21  enumerated in s. 221.02, those enumerated in s. 220.184, those

22  enumerated in s. 220.186, those enumerated in s. 220.1845,

23  those enumerated in s. 220.19, those enumerated in s. 220.185,

24  and those enumerated in s. 220.187, and those enumerated in s.

25  220.1875.

26         Section 6.  Paragraph (a) of subsection (1) of section

27  220.13, Florida Statutes, is amended to read:

28         220.13  "Adjusted federal income" defined.--

29         (1)  The term "adjusted federal income" means an amount

30  equal to the taxpayer's taxable income as defined in

31  subsection (2), or such taxable income of more than one

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 1  taxpayer as provided in s. 220.131, for the taxable year,

 2  adjusted as follows:

 3         (a)  Additions.--There shall be added to such taxable

 4  income:

 5         1.  The amount of any tax upon or measured by income,

 6  excluding taxes based on gross receipts or revenues, paid or

 7  accrued as a liability to the District of Columbia or any

 8  state of the United States which is deductible from gross

 9  income in the computation of taxable income for the taxable

10  year.

11         2.  The amount of interest which is excluded from

12  taxable income under s. 103(a) of the Internal Revenue Code or

13  any other federal law, less the associated expenses disallowed

14  in the computation of taxable income under s. 265 of the

15  Internal Revenue Code or any other law, excluding 60 percent

16  of any amounts included in alternative minimum taxable income,

17  as defined in s. 55(b)(2) of the Internal Revenue Code, if the

18  taxpayer pays tax under s. 220.11(3).

19         3.  In the case of a regulated investment company or

20  real estate investment trust, an amount equal to the excess of

21  the net long-term capital gain for the taxable year over the

22  amount of the capital gain dividends attributable to the

23  taxable year.

24         4.  That portion of the wages or salaries paid or

25  incurred for the taxable year which is equal to the amount of

26  the credit allowable for the taxable year under s. 220.181.

27  The provisions of this subparagraph shall expire and be void

28  on June 30, 2005.

29         5.  That portion of the ad valorem school taxes paid or

30  incurred for the taxable year which is equal to the amount of

31  the credit allowable for the taxable year under s. 220.182.

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 1  The provisions of this subparagraph shall expire and be void

 2  on June 30, 2005.

 3         6.  The amount of emergency excise tax paid or accrued

 4  as a liability to this state under chapter 221 which tax is

 5  deductible from gross income in the computation of taxable

 6  income for the taxable year.

 7         7.  That portion of assessments to fund a guaranty

 8  association incurred for the taxable year which is equal to

 9  the amount of the credit allowable for the taxable year.

10         8.  In the case of a nonprofit corporation which holds

11  a pari-mutuel permit and which is exempt from federal income

12  tax as a farmers' cooperative, an amount equal to the excess

13  of the gross income attributable to the pari-mutuel operations

14  over the attributable expenses for the taxable year.

15         9.  The amount taken as a credit for the taxable year

16  under s. 220.1895.

17         10.  Up to nine percent of the eligible basis of any

18  designated project which is equal to the credit allowable for

19  the taxable year under s. 220.185.

20         11.  The amount taken as a credit for the taxable year

21  under s. 220.187.

22         12.  The amount taken as a credit for the taxable year

23  under s. 220.1875.

24         Section 7.  Section 220.701, Florida Statutes, is

25  amended to read:

26         220.701  Collection authority.--The department shall

27  collect the taxes imposed by this chapter and shall pay all

28  moneys received by it into the Corporate Income Tax Trust Fund

29  created under s. 220.7015 General Revenue Fund of the state.

30         Section 8.  Subsection (13) of section 1001.10, Florida

31  Statutes, is amended to read:

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 1         1001.10  Commissioner of Education; general powers and

 2  duties.--The Commissioner of Education is the chief

 3  educational officer of the state, and is responsible for

 4  giving full assistance to the State Board of Education in

 5  enforcing compliance with the mission and goals of the

 6  seamless K-20 education system. To facilitate innovative

 7  practices and to allow local selection of educational methods,

 8  the State Board of Education may authorize the commissioner to

 9  waive, upon the request of a district school board, State

10  Board of Education rules that relate to district school

11  instruction and school operations, except those rules

12  pertaining to civil rights, and student health, safety, and

13  welfare. The Commissioner of Education is not authorized to

14  grant waivers for any provisions in rule pertaining to the

15  allocation and appropriation of state and local funds for

16  public education; the election, compensation, and organization

17  of school board members and superintendents; graduation and

18  state accountability standards; financial reporting

19  requirements; reporting of out-of-field teaching assignments

20  under s. 1012.42; public meetings; public records; or due

21  process hearings governed by chapter 120. No later than

22  January 1 of each year, the commissioner shall report to the

23  Legislature and the State Board of Education all approved

24  waiver requests in the preceding year. Additionally, the

25  commissioner has the following general powers and duties:

26         (13)  To prepare and publish annually reports giving

27  statistics and other useful information pertaining to the tax

28  credit programs under ss. 220.187 and 220.1875 Opportunity

29  Scholarship Program.

30  

31  

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 1  The commissioner's office shall operate all statewide

 2  functions necessary to support the State Board of Education

 3  and the K-20 education system, including strategic planning

 4  and budget development, general administration, and assessment

 5  and accountability.

 6         Section 9.  Subsection (18) of section 1001.42, Florida

 7  Statutes, is amended to read:

 8         1001.42  Powers and duties of district school

 9  board.--The district school board, acting as a board, shall

10  exercise all powers and perform all duties listed below:

11         (18)  CORPORATE INCOME TAX CREDIT SCHOLARSHIP PROGRAM;

12  FAMILIES OF STUDENTS ATTENDING FAILING SCHOOLS OPPORTUNITY

13  SCHOLARSHIPS.--Adopt policies allowing students attending

14  schools that have been designated as performance grade

15  category "F," failing to make adequate progress, for 2 school

16  years in a 4-year period to attend a higher performing public

17  school in the same district or an adjoining district or be

18  granted a state opportunity scholarship to transport the

19  student to a public school in an adjoining district or a

20  schlarship to attend a private school, in conformance with s.

21  220.1875 s. 1002.38 and State Board of Education rule.

22         Section 10.  Subsection (6) of section 1002.20, Florida

23  Statutes, is amended to read:

24         1002.20  K-12 student and parent rights.--Parents of

25  public school students must receive accurate and timely

26  information regarding their child's academic progress and must

27  be informed of ways they can help their child to succeed in

28  school. K-12 students and their parents are afforded numerous

29  statutory rights including, but not limited to, the following:

30         (6)  EDUCATIONAL CHOICE.--

31  

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 1         (a)  Public school choices.--Parents of public school

 2  students may seek whatever public school choice options that

 3  are applicable to their students and are available to students

 4  in their school districts. These options may include

 5  controlled open enrollment, lab schools, charter schools,

 6  charter technical career centers, magnet schools, alternative

 7  schools, special programs, advanced placement, dual

 8  enrollment, International Baccalaureate, International General

 9  Certificate of Secondary Education (pre-AICE), Advanced

10  International Certificate of Education, early admissions,

11  credit by examination or demonstration of competency, the New

12  World School of the Arts, the Florida School for the Deaf and

13  the Blind, and the Florida Virtual School. These options may

14  also include the public school choice options of the corporate

15  income tax credit scholarship programs Opportunity Scholarship

16  Program and the McKay Scholarships for Students with

17  Disabilities Program.

18         (b)  Private school choices.--Parents of public school

19  students may seek private school choice options under certain

20  programs.

21         1.  Under the corporate income tax credit scholarship

22  program for families of students attending schools failing to

23  make adequate progress Opportunity Scholarship Program, the

24  parent of a student in a failing public school may seek a

25  request and receive an opportunity scholarship from an

26  eligible nonprofit scholarship-funding organization for the

27  student to attend a private school in accordance with the

28  provisions of s. 220.1875 s. 1002.38.

29         2.  Under the McKay Scholarships for Students with

30  Disabilities Program, the parent of a public school student

31  with a disability who is dissatisfied with the student's

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 1  progress may request and receive a McKay Scholarship for the

 2  student to attend a private school in accordance with the

 3  provisions of s. 1002.39.

 4         3.  Under the corporate income tax credit scholarship

 5  program for families that have limited financial resources,

 6  the parent of a student who qualifies for free or

 7  reduced-price school lunch may seek a scholarship from an

 8  eligible nonprofit scholarship-funding organization for the

 9  student to attend a private school in accordance with the

10  provisions of s. 220.187.

11         (c)  Home education.--The parent of a student may

12  choose to place the student in a home education program in

13  accordance with the provisions of s. 1002.41.

14         (d)  Private tutoring.--The parent of a student may

15  choose to place the student in a private tutoring program in

16  accordance with the provisions of s. 1002.43(1).

17         Section 11.  Section 1002.38, Florida Statutes, is

18  repealed.

19         Section 12.  Section 1002.39, Florida Statutes, is

20  amended to read:

21         1002.39  The John M. McKay Scholarships for Students

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

23  that is separate and distinct from the Opportunity Scholarship

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

25  Students with Disabilities Program, pursuant to this section.

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

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

28  Students with Disabilities Program is established to provide

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

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

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

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 1  individual education plan has been written in accordance with

 2  rules of the State Board of Education. Students with

 3  disabilities include K-12 students who are mentally

 4  handicapped, speech and language impaired, deaf or hard of

 5  hearing, visually impaired, dual sensory impaired, physically

 6  impaired, emotionally handicapped, specific learning disabled,

 7  hospitalized or homebound, or autistic.

 8         (2)  SCHOLARSHIP ELIGIBILITY.--The parent of a public

 9  school student with a disability who is dissatisfied with the

10  student's progress may request and receive from the state a

11  John M. McKay Scholarship for the child to enroll in and

12  attend a private school in accordance with this section if:

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

14  assignment, the student has spent the prior school year in

15  attendance at a Florida public school. Prior school year in

16  attendance means that the student was enrolled and reported by

17  a school district for funding during the preceding October and

18  February Florida Education Finance Program surveys in

19  kindergarten through grade 12. However, this paragraph does

20  not apply to a dependent child of a member of the United

21  States Armed Forces who transfers to a school in this state

22  from out of state or from a foreign country pursuant to a

23  parent's permanent change of station orders. A dependent child

24  of a member of the United States Armed Forces who transfers to

25  a school in this state from out of state or from a foreign

26  country pursuant to a parent's permanent change of station

27  orders must meet all other eligibility requirements to

28  participate in the program.

29         (b)  The parent has obtained acceptance for admission

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

31  program under subsection (4) and has notified the school

                                  33

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 1  district of the request for a scholarship at least 60 days

 2  prior to the date of the first scholarship payment. The

 3  parental notification must be through a communication directly

 4  to the district or through the Department of Education to the

 5  district in a manner that creates a written or electronic

 6  record of the notification and the date of receipt of the

 7  notification.

 8  

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

10  school operating for the purpose of providing educational

11  services to youth in Department of Juvenile Justice commitment

12  programs. For purposes of continuity of educational choice,

13  the scholarship shall remain in force until the student

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

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

16  student from the private school and place the student in

17  another private school that is eligible for the program under

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

19  (3).

20         (3)  SCHOOL DISTRICT AND DEPARTMENT OF EDUCATION

21  OBLIGATIONS.--

22         (a)  A school district shall timely notify the parent

23  of the student of all options available pursuant to this

24  section and offer that student's parent an opportunity to

25  enroll the student in another public school within the

26  district. The parent is not required to accept this offer in

27  lieu of requesting a John M. McKay Scholarship to a private

28  school. However, if the parent chooses the public school

29  option, the student may continue attending a public school

30  chosen by the parent until the student graduates from high

31  school. If the parent chooses a public school consistent with

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

 2  school district shall provide transportation to the public

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

 4  provide transportation to a public school chosen that is not

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

 6  s. 1002.31.

 7         (b)  For a student with disabilities who does not have

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

 9  district must complete a matrix that assigns the student to

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

11  2000-2001 school year. The school district must complete the

12  matrix of services for any student who is participating in the

13  John M. McKay Scholarships for Students with Disabilities

14  Program and must notify the Department of Education of the

15  student's matrix level within 30 days after receiving

16  notification by the student's parent of intent to participate

17  in the scholarship program. The Department of Education shall

18  notify the private school of the amount of the scholarship

19  within 10 days after receiving the school district's

20  notification of the student's matrix level. Within 10 school

21  days after it receives notification of a parent's intent to

22  apply for a McKay Scholarship, a district school board must

23  notify the student's parent if the matrix has not been

24  completed and provide the parent with the date for completion

25  of the matrix required in this paragraph.

26         (c)  If the parent chooses the private school option

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

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

29  student must notify the school district 60 days prior to the

30  first scholarship payment and before entering the private

31  

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 1  school in order to be eligible for the scholarship when a

 2  space becomes available for the student in the private school.

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

 4  alternative, to enroll the student in and transport the

 5  student to a public school in an adjacent school district

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

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

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

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

10  pursuant to the Florida Education Finance Program.

11         (e)  For a student in the district who participates in

12  the John M. McKay Scholarships for Students with Disabilities

13  Program whose parent requests that the student take the

14  statewide assessments under s. 1008.22, the district shall

15  provide locations and times to take all statewide assessments.

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

17  Education within 10 days after it receives notification of a

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

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

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

21  after its completion.

22         (4)  PRIVATE SCHOOL ELIGIBILITY.--To be eligible to

23  participate in the John M. McKay Scholarships for Students

24  with Disabilities Program, a private school must be a Florida

25  private school, may be sectarian or nonsectarian, and must:

26         (a)  Demonstrate fiscal soundness by being in operation

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

28  a statement by a certified public accountant confirming that

29  the private school desiring to participate is insured and the

30  owner or owners have sufficient capital or credit to operate

31  the school for the upcoming year serving the number of

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 1  students anticipated with expected revenues from tuition and

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

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

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

 5  with the department.

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

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

 8  must specify the grade levels and services that the private

 9  school has available for students with disabilities who are

10  participating in the scholarship program.

11         (c)  Comply with the antidiscrimination provisions of

12  42 U.S.C. s. 2000d.

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

14  codes.

15         (e)  Be academically accountable to the parent for

16  meeting the educational needs of the student.

17         (f)  Employ or contract with teachers who hold

18  baccalaureate or higher degrees, or 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         (g)  Comply with all state laws relating to general

23  regulation of private schools.

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

25  procedures prior to the expulsion of a scholarship student.

26         (5)  OBLIGATION OF PROGRAM PARTICIPANTS.--

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

28  Scholarship is exercising his or her parental option to place

29  his or her child in a private school. The parent must select

30  the private school and apply for the admission of his or her

31  child.

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

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

 3  payment.

 4         (c)  Any student participating in the scholarship

 5  program must remain in attendance throughout the school year,

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

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

 8         (d)  The parent of each student participating in the

 9  scholarship program must comply fully with the private

10  school's parental involvement requirements, unless excused by

11  the school for illness or other good cause.

12         (e)  If the parent requests that the student

13  participating in the scholarship program take all statewide

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

15  responsible for transporting the student to the assessment

16  site designated by the school district.

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

18  to whom the warrant is made must restrictively endorse the

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

20  the private school.

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

22  subsection forfeits the scholarship.

23         (6)  SCHOLARSHIP FUNDING AND 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  subparagraph 3., the calculation shall be based on the

 8  student's grade, matrix level of services, and the difference

 9  between the 2000-2001 basic program and the appropriate level

10  of services cost factor, multiplied by the 2000-2001 base

11  student allocation and the 2000-2001 district cost

12  differential for the sending district.  Also, the calculated

13  amount shall include the per-student share of supplemental

14  academic instruction funds, instructional materials funds,

15  technology funds, and other categorical funds as provided for

16  such purposes in the General Appropriations Act.

17         3.  Until the school district completes the matrix

18  required by paragraph (3)(b), the calculation shall be based

19  on the matrix that assigns the student to support level I of

20  service as it existed prior to the 2000-2001 school year.

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

22  the payment shall be adjusted as needed.

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

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

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

26  assessment fee required by the participating private school

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

28         (c)  If the participating private school requires

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

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

31  that partial payment may be paid by the Department of

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

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

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

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

 5  private school, the partial reservation payment must be

 6  returned to the Department of Education by the participating

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

 8  per student per year.

 9         (d)  The school district shall report all students who

10  are attending a private school under this program. The

11  students with disabilities attending private schools on John

12  M. McKay Scholarships shall be reported separately from other

13  students reported for purposes of the Florida Education

14  Finance Program.

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

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

17  participants, the Department of Education shall transfer, from

18  General Revenue funds only, the amount calculated under

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

20  entitlement under the Florida Education Finance Program and

21  from authorized categorical accounts to a separate account for

22  the scholarship program for quarterly disbursement to the

23  parents of participating students. When a student enters the

24  scholarship program, the Department of Education must receive

25  all documentation required for the student's participation,

26  including the private school's and student's fee schedules, at

27  least 30 days before the first quarterly scholarship payment

28  is made for the student. The Department of Education may not

29  make any retroactive payments.

30         (f)  Upon proper documentation reviewed and approved by

31  the Department of Education, the Chief Financial Officer shall

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 1  make scholarship payments in four equal amounts no later than

 2  September 1, November 1, February 1, and April 15 of each

 3  academic year in which the scholarship is in force. The

 4  initial payment shall be made after Department of Education

 5  verification of admission acceptance, and subsequent payments

 6  shall be made upon verification of continued enrollment and

 7  attendance at the private school. Payment must be by

 8  individual warrant made payable to the student's parent and

 9  mailed by the Department of Education to the private school of

10  the parent's choice, and the parent shall restrictively

11  endorse the warrant to the private school for deposit into the

12  account of the private school.

13         (7)  LIABILITY.--No liability shall arise on the part

14  of the state based on the award or use of a John M. McKay

15  Scholarship.

16         (8)  RULES.--The State Board of Education shall adopt

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

18  section, including rules that school districts must use to

19  expedite the development of a matrix of services based on a

20  current individual education plan from another state or a

21  foreign country for a transferring student with a disability

22  who is a dependent child of a member of the United States

23  Armed Forces. The rules must identify the appropriate school

24  district personnel who must complete the matrix of services.

25  For purposes of these rules, a transferring  student with a

26  disability is one who was previously enrolled as a student

27  with a disability in an out-of-state or an out-of-country

28  public or private school or agency program and who is

29  transferring from out of state or from a foreign country

30  pursuant to a parent's permanent change of station orders.

31  However, the inclusion of eligible private schools within

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 1  options available to Florida public school students does not

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

 3  any school district to impose any additional regulation of

 4  private schools beyond those reasonably necessary to enforce

 5  requirements expressly set forth in this section.

 6         Section 13.  This act shall take effect July 1, 2006.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                          CS for SB 2234

10                                 

11  The committee substitute provides that rulemaking authority is
    vested with the State Board of Education rather than the
12  Department of Education.  The committee substitute also makes
    changes to ss. 1001.42 and 1002.20, F.S., to conform to the
13  repeal of the Opportunity Scholarship Program and the creation
    of the tax credit scholarship program for students attending
14  schools failing to make adequate progress.

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

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27  

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31  

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