HB 7041

1
A bill to be entitled
2An act relating to scholarship program accountability;
3amending s. 1002.39, F.S., relating to the John M. McKay
4Scholarships for Students with Disabilities Program;
5revising definition of the term "students with
6disabilities"; revising student eligibility requirements
7for receipt of a scholarship and restricting eligibility
8therefor; providing for term of a scholarship; revising
9and adding school district obligations and clarifying
10parental options; revising and adding Department of
11Education obligations, including verification of
12eligibility of private schools and establishment of a
13process for notification of violations, subsequent inquiry
14or investigation, and certification of compliance by
15private schools; providing Commissioner of Education
16authority and obligations, including the denial,
17suspension, or revocation of a private school's
18participation in the scholarship program and procedures
19and timelines therefor; revising private school
20eligibility and obligations, including compliance with
21specified laws and academic accountability to the parent;
22revising parent and student responsibilities for
23scholarship program participation; prohibiting power of
24attorney for endorsing a scholarship warrant; revising
25provisions relating to scholarship funding and payment;
26providing funding and payment requirements for former
27Florida School for the Deaf and the Blind students and for
28students exiting a Department of Juvenile Justice program;
29providing Department of Financial Services obligations;
30amending s. 220.187, F.S., relating to credits for
31contributions to nonprofit scholarship-funding
32organizations; revising and providing definitions; naming
33the Corporate Income Tax Credit Scholarship Program;
34providing student eligibility requirements for receipt of
35a corporate income tax credit scholarship and restricting
36eligibility therefor; revising provisions relating to tax
37credit for small businesses; providing for adjustment of
38the total amount of tax credits and carryforward of tax
39credits; providing for rescindment of tax credit
40allocation; revising and adding obligations of eligible
41nonprofit scholarship-funding organizations, including
42compliance with requirements for background checks of
43owners and operators, scholarship-funding organization
44ownership or operation, carryforward and transfer of
45funds, audits, and reports; specifying background
46screening requirements and procedures; requiring certain
47information to remain confidential in accordance with s.
48213.053, F.S.; revising and adding parent and student
49responsibilities for scholarship program participation,
50including compliance with a private school's published
51policies, participation in student academic assessment,
52and restrictive endorsement of scholarship warrants;
53prohibiting power of attorney for endorsing a scholarship
54warrant; revising and adding private school eligibility
55requirements and obligations, including compliance with
56specified laws and academic accountability to the parent;
57revising and adding Department of Education obligations,
58including verification of eligibility of program
59participants, establishment of a process for notification
60of violations, subsequent inquiry or investigation,
61certification of compliance by private schools, and
62selection of a research organization to analyze student
63performance data; providing Commissioner of Education
64authority and obligations, including the denial,
65suspension, or revocation of a private school's
66participation in the scholarship program and procedures
67and timelines therefor; revising and adding provisions
68relating to scholarship funding and payment, including the
69amount of a scholarship and the payment process; requiring
70adoption of rules; creating s. 1002.421, F.S., relating to
71rights and obligations of private schools participating in
72state school choice scholarship programs; providing
73requirements for participation in a scholarship program,
74including compliance with specified state, local, and
75federal laws and demonstration of fiscal soundness;
76requiring restrictive endorsement of a scholarship warrant
77and prohibiting power of attorney for endorsing a warrant;
78requiring employment of qualified teachers and background
79screening of employees and contracted personnel with
80direct student contact; specifying background screening
81requirements and procedures; providing scope of authority;
82requiring adoption of rules; providing an effective date.
83
84Be It Enacted by the Legislature of the State of Florida:
85
86     Section 1.  Section 1002.39, Florida Statutes, is amended
87to read:
88     1002.39  The John M. McKay Scholarships for Students with
89Disabilities Program.--There is established a program that is
90separate and distinct from the Opportunity Scholarship Program
91and is named the John M. McKay Scholarships for Students with
92Disabilities Program, pursuant to this section.
93     (1)  THE JOHN M. MCKAY SCHOLARSHIPS FOR STUDENTS WITH
94DISABILITIES PROGRAM.--The John M. McKay Scholarships for
95Students with Disabilities Program is established to provide the
96option to attend a public school other than the one to which
97assigned, or to provide a scholarship to a private school of
98choice, for students with disabilities for whom an individual
99education plan has been written in accordance with rules of the
100State Board of Education. Students with disabilities include K-
10112 students who are documented as having mental retardation; a
102mentally handicapped, speech or and language impairment; a
103impaired, deaf or hard of hearing impairment, including
104deafness; a visual impairment, including blindness; a visually
105impaired, dual sensory impairment; a physical impairment; a
106serious emotional disturbance, including an emotional handicap;
107a impaired, physically impaired, emotionally handicapped,
108specific learning disability, including, but not limited to,
109dyslexia, dyscalculia, or developmental aphasia; a traumatic
110brain injury; disabled, hospitalized or homebound, or autism
111autistic.
112     (2)  JOHN M. MCKAY SCHOLARSHIP ELIGIBILITY.--The parent of
113a public school student with a disability who is dissatisfied
114with the student's progress may request and receive from the
115state a John M. McKay Scholarship for the child to enroll in and
116attend a private school in accordance with this section if:
117     (a)  By assigned school attendance area or by special
118assignment, The student has spent the prior school year in
119attendance at a Florida public school or the Florida School for
120the Deaf and the Blind. Prior school year in attendance means
121that the student was:
122     1.  Enrolled and reported by a school district for funding
123during the preceding October and February Florida Education
124Finance Program surveys in kindergarten through grade 12, which
125shall include time spent in a Department of Juvenile Justice
126commitment program if funded under the Florida Education Finance
127Program;
128     2.  Enrolled and reported by the Florida School for the
129Deaf and the Blind during the preceding October and February
130student membership surveys in kindergarten through grade 12; or
131     3.  Enrolled and reported by a school district for funding
132during the preceding October and February Florida Education
133Finance Program surveys, at least 4 years old when so enrolled
134and reported, and eligible for services under s. 1003.21(1)(e).
135
136However, this paragraph does not apply to a dependent child of a
137member of the United States Armed Forces who transfers to a
138school in this state from out of state or from a foreign country
139pursuant to a parent's permanent change of station orders is
140exempt from this paragraph but. A dependent child of a member of
141the United States Armed Forces who transfers to a school in this
142state from out of state or from a foreign country pursuant to a
143parent's permanent change of station orders must meet all other
144eligibility requirements to participate in the program.
145     (b)  The parent has obtained acceptance for admission of
146the student to a private school that is eligible for the program
147under subsection (8) (4) and has requested from the department
148notified the school district of the request for a scholarship at
149least 60 days prior to the date of the first scholarship
150payment. The request parental notification must be through a
151communication directly to the department district or through the
152Department of Education to the district in a manner that creates
153a written or electronic record of the request notification and
154the date of receipt of the request notification.
155
156This section does not apply to a student who is enrolled in a
157school operating for the purpose of providing educational
158services to youth in Department of Juvenile Justice commitment
159programs. For purposes of continuity of educational choice, the
160scholarship shall remain in force until the student returns to a
161public school or graduates from high school. However, at any
162time, the student's parent may remove the student from the
163private school and place the student in another private school
164that is eligible for the program under subsection (4) or in a
165public school as provided in subsection (3).
166     (3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student is
167not eligible for a John M. McKay Scholarship while he or she is:
168     (a)  Enrolled in a school operating for the purpose of
169providing educational services to youth in Department of
170Juvenile Justice commitment programs;
171     (b)  Receiving a corporate income tax credit scholarship
172under s. 220.187;
173     (c)  Receiving an educational scholarship pursuant to this
174chapter;
175     (d)  Participating in a home education program as defined
176in s. 1002.01(1);
177     (e)  Participating in a private tutoring program pursuant
178to s. 1002.43;
179     (f)  Participating in a virtual school, correspondence
180school, or distance learning program that receives state funding
181pursuant to the student's participation unless the participation
182is limited to no more than two courses per school year; or
183     (g)  Enrolled in the Florida School for the Deaf and the
184Blind.
185     (4)  TERM OF JOHN M. MCKAY SCHOLARSHIP.--
186     (a)  For purposes of continuity of educational choice, a
187John M. McKay Scholarship shall remain in force until the
188student returns to a public school, graduates from high school,
189or reaches the age of 22, whichever occurs first.
190     (b)  Upon reasonable notice to the department and the
191school district, the student's parent may remove the student
192from the private school and place the student in a public school
193in accordance with this section.
194     (c)  Upon reasonable notice to the department, the
195student's parent may move the student from one participating
196private school to another participating private school.
197     (5)(3)  SCHOOL DISTRICT AND DEPARTMENT OF EDUCATION
198OBLIGATIONS; PARENTAL OPTIONS.--
199     (a)1.  By April 1 of each year and within 10 days after an
200individual education plan meeting, a school district shall
201timely notify the parent of the student of all options available
202pursuant to this section, inform the parent of the availability
203of the department's telephone hotline and Internet website for
204additional information on John M. McKay Scholarships, and offer
205that student's parent an opportunity to enroll the student in
206another public school within the district.
207     2.  The parent is not required to accept the this offer of
208enrolling in another public school in lieu of requesting a John
209M. McKay Scholarship to a private school. However, if the parent
210chooses the public school option, the student may continue
211attending a public school chosen by the parent until the student
212graduates from high school.
213     3.  If the parent chooses a public school consistent with
214the district school board's choice plan under s. 1002.31, the
215school district shall provide transportation to the public
216school selected by the parent. The parent is responsible to
217provide transportation to a public school chosen that is not
218consistent with the district school board's choice plan under s.
2191002.31.
220     (b)1.  For a student with disabilities who does not have a
221matrix of services under s. 1011.62(1)(e), the school district
222must complete a matrix that assigns the student to one of the
223levels of service as they existed prior to the 2000-2001 school
224year.
225     2.a.  Within 10 school days after it receives notification
226of a parent's request for a John M. McKay Scholarship, a school
227district must notify the student's parent if the matrix of
228services has not been completed and inform the parent that the
229district is required to complete the matrix within 30 days after
230receiving notice of the parent's request for a John M. McKay
231Scholarship. This notice should include the required completion
232date for the matrix.
233     b.  The school district must complete the matrix of
234services for any student who is participating in the John M.
235McKay Scholarships for Students with Disabilities Program and
236must notify the department of Education of the student's matrix
237level within 30 days after receiving notification of a request
238by the student's parent of intent to participate in the
239scholarship program. The school district must provide the
240student's parent with the student's matrix level within 10
241school days after its completion.
242     c.  The department of Education shall notify the private
243school of the amount of the scholarship within 10 days after
244receiving the school district's notification of the student's
245matrix level. Within 10 school days after it receives
246notification of a parent's intent to apply for a McKay
247Scholarship, a district school board must notify the student's
248parent if the matrix has not been completed and provide the
249parent with the date for completion of the matrix required in
250this paragraph.
251     d.  A school district may change a matrix of services only
252if the change is to correct a technical, typographical, or
253calculation error.
254     (c)  A school district shall provide notification to
255parents of the availability of a reevaluation at least every 3
256years of each student who receives a John M. McKay Scholarship.
257     (d)(c)  If the parent chooses the private school option and
258the student is accepted by the private school pending the
259availability of a space for the student, the parent of the
260student must notify the department school district 60 days prior
261to the first scholarship payment and before entering the private
262school in order to be eligible for the scholarship when a space
263becomes available for the student in the private school.
264     (e)(d)  The parent of a student may choose, as an
265alternative, to enroll the student in and transport the student
266to a public school in an adjacent school district which has
267available space and has a program with the services agreed to in
268the student's individual education plan already in place, and
269that school district shall accept the student and report the
270student for purposes of the district's funding pursuant to the
271Florida Education Finance Program.
272     (f)(e)  For a student in the district who participates in
273the John M. McKay Scholarships for Students with Disabilities
274Program whose parent requests that the student take the
275statewide assessments under s. 1008.22, the district in which
276the student attends private school shall provide locations and
277times to take all statewide assessments.
278     (f)  A school district must notify the Department of
279Education within 10 days after it receives notification of a
280parent's intent to apply for a scholarship for a student with a
281disability. A school district must provide the student's parent
282with the student's matrix level within 10 school days after its
283completion.
284     (6)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The department
285shall:
286     (a)  Establish a toll-free hotline that provides parents
287and private schools with information on participation in the
288John M. McKay Scholarships for Students with Disabilities
289Program.
290     (b)  Annually verify the eligibility of private schools
291that meet the requirements of subsection (8).
292     (c)  Establish a process by which individuals may notify
293the department of any violation by a parent, private school, or
294school district of state laws relating to program participation.
295The department shall conduct an inquiry of any written complaint
296of a violation of this section, or make a referral to the
297appropriate agency for an investigation, if the complaint is
298signed by the complainant and is legally sufficient. A complaint
299is legally sufficient if it contains ultimate facts that show
300that a violation of this section or any rule adopted by the
301State Board of Education has occurred. In order to determine
302legal sufficiency, the department may require supporting
303information or documentation from the complainant. A department
304inquiry is not subject to the requirements of chapter 120.
305     (d)  Require an annual, notarized, sworn compliance
306statement by participating private schools certifying compliance
307with state laws and shall retain such records.
308     (e)  Cross-check the list of participating scholarship
309students with the public school enrollment lists prior to the
310first scholarship payment to avoid duplication.
311     (7)  COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.--
312     (a)  The Commissioner of Education shall deny, suspend, or
313revoke a private school's participation in the scholarship
314program if it is determined that the private school has failed
315to comply with the provisions of this section. However, in
316instances in which the noncompliance is correctable within a
317reasonable amount of time and in which the health, safety, and
318welfare of the students are not threatened, the commissioner may
319issue a notice of noncompliance that shall provide the private
320school with a timeframe within which to provide evidence of
321compliance prior to taking action to suspend or revoke the
322private school's participation in the scholarship program.
323     (b)  The commissioner's determination is subject to the
324following:
325     1.  If the commissioner intends to deny, suspend, or revoke
326a private school's participation in the scholarship program, the
327department shall notify the private school of such proposed
328action in writing by certified mail and regular mail to the
329private school's address of record with the department. The
330notification shall include the reasons for the proposed action
331and notice of the timelines and procedures set forth in this
332paragraph.
333     2.  The private school that is adversely affected by the
334proposed action shall have 15 days from receipt of the notice of
335proposed action to file with the department's agency clerk a
336request for a proceeding pursuant to ss. 120.569 and 120.57. If
337the private school is entitled to a hearing under s. 120.57(1),
338the department shall forward the request to the Division of
339Administrative Hearings.
340     3.  Upon receipt of a request referred pursuant to this
341paragraph, the director of the Division of Administrative
342Hearings shall expedite the hearing and assign an administrative
343law judge who shall commence a hearing within 30 days after the
344receipt of the formal written request by the division and enter
345a recommended order within 30 days after the hearing or within
34630 days after receipt of the hearing transcript, whichever is
347later. Each party shall be allowed 10 days in which to submit
348written exceptions to the recommended order. A final order shall
349be entered by the agency within 30 days after the entry of a
350recommended order. The provisions of this subparagraph may be
351waived upon stipulation by all parties.
352     (c)  The commissioner may immediately suspend payment of
353scholarship funds if it is determined that there is probable
354cause to believe that there is:
355     1.  An imminent threat to the health, safety, and welfare
356of the students; or
357     2.  Fraudulent activity on the part of the private school.
358
359The commissioner's order suspending payment pursuant to this
360paragraph may be appealed pursuant to the same procedures and
361timelines as the notice of proposed action set forth in
362paragraph (b).
363     (8)(4)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--To be
364eligible to participate in the John M. McKay Scholarships for
365Students with Disabilities Program, a private school must be a
366Florida private school, may be sectarian or nonsectarian, and
367must:
368     (a)  Comply with all requirements for private schools
369participating in state school choice scholarship programs
370pursuant to s. 1002.421.
371     (b)  Provide the department all documentation required for
372a student's participation, including the private school's and
373student's fee schedules, at least 30 days before the first
374quarterly scholarship payment is made for the student.
375     (c)  Be academically accountable to the parent for meeting
376the educational needs of the student by:
377     1.  At a minimum, annually providing to the parent a
378written explanation of the student's progress.
379     2.  Cooperating with the scholarship student whose parent
380chooses to participate in the statewide assessments pursuant to
381s. 1008.22.
382
383The inability of a private school to meet the requirements of
384this subsection shall constitute a basis for the ineligibility
385of the private school to participate in the scholarship program
386as determined by the department.
387     (a)  Demonstrate fiscal soundness by being in operation for
3881 school year or provide the Department of Education with a
389statement by a certified public accountant confirming that the
390private school desiring to participate is insured and the owner
391or owners have sufficient capital or credit to operate the
392school for the upcoming year serving the number of students
393anticipated with expected revenues from tuition and other
394sources that may be reasonably expected. In lieu of such a
395statement, a surety bond or letter of credit for the amount
396equal to the scholarship funds for any quarter may be filed with
397the department.
398     (b)  Notify the Department of Education of its intent to
399participate in the program under this section. The notice must
400specify the grade levels and services that the private school
401has available for students with disabilities who are
402participating in the scholarship program.
403     (c)  Comply with the antidiscrimination provisions of 42
404U.S.C. s. 2000d.
405     (d)  Meet state and local health and safety laws and codes.
406     (e)  Be academically accountable to the parent for meeting
407the educational needs of the student.
408     (f)  Employ or contract with teachers who hold
409baccalaureate or higher degrees, or have at least 3 years of
410teaching experience in public or private schools, or have
411special skills, knowledge, or expertise that qualifies them to
412provide instruction in subjects taught.
413     (g)  Comply with all state laws relating to general
414regulation of private schools.
415     (h)  Adhere to the tenets of its published disciplinary
416procedures prior to the expulsion of a scholarship student.
417     (9)(5)  PARENT AND STUDENT RESPONSIBILITIES FOR OBLIGATION
418OF PROGRAM PARTICIPATION PARTICIPANTS.--A parent who applies for
419a John M. McKay Scholarship is exercising his or her parental
420option to place his or her child in a private school.
421     (a)  A parent who applies for a John M. McKay Scholarship
422is exercising his or her parental option to place his or her
423child in a private school. The parent must select the private
424school and apply for the admission of his or her child.
425     (b)  The parent must have requested the scholarship at
426least 60 days prior to the date of the first scholarship
427payment.
428     (c)  Any student participating in the John M. McKay
429Scholarships for Students with Disabilities scholarship Program
430must remain in attendance throughout the school year, unless
431excused by the school for illness or other good cause, and must
432comply fully with the school's code of conduct.
433     (d)  Each The parent and of each student has an obligation
434to the private school to participating in the scholarship
435program must comply fully with the private school's published
436policies parental involvement requirements, unless excused by
437the school for illness or other good cause.
438     (e)  If the parent requests that the student participating
439in the John M. McKay Scholarships for Students with Disabilities
440scholarship Program take all statewide assessments required
441pursuant to s. 1008.22, the parent is responsible for
442transporting the student to the assessment site designated by
443the school district.
444     (f)  Upon receipt of a scholarship warrant, the parent to
445whom the warrant is made must restrictively endorse the warrant
446to the private school for deposit into the account of the
447private school. The parent may not designate any entity or
448individual associated with the participating private school as
449the parent's attorney in fact to endorse a scholarship warrant.
450A participant who fails to comply with this paragraph forfeits
451the scholarship.
452     (g)  A participant who fails to comply with this subsection
453forfeits the scholarship.
454     (10)(6)  JOHN M. MCKAY SCHOLARSHIP FUNDING AND PAYMENT.--
455     (a)1.  The maximum scholarship granted for an eligible
456student with disabilities shall be a calculated amount
457equivalent to the base student allocation in the Florida
458Education Finance Program multiplied by the appropriate cost
459factor for the educational program that would have been provided
460for the student in the district school to which he or she was
461assigned, multiplied by the district cost differential.
462     2.  In addition, a share of the guaranteed allocation for
463exceptional students shall be determined and added to the
464calculated amount. The calculation shall be based on the
465methodology and the data used to calculate the guaranteed
466allocation for exceptional students for each district in chapter
4672000-166, Laws of Florida. Except as provided in subparagraphs
468subparagraph 3. and 4., the calculation shall be based on the
469student's grade, matrix level of services, and the difference
470between the 2000-2001 basic program and the appropriate level of
471services cost factor, multiplied by the 2000-2001 base student
472allocation and the 2000-2001 district cost differential for the
473sending district. Also, the calculated amount shall include the
474per-student share of supplemental academic instruction funds,
475instructional materials funds, technology funds, and other
476categorical funds as provided for such purposes in the General
477Appropriations Act.
478     3.  The calculated scholarship amount for a student who is
479eligible under subparagraph (2)(a)2. shall be calculated as
480provided in subparagraphs 1. and 2. However, the calculation
481shall be based on the school district in which the parent
482resides at the time of the scholarship request.
483     4.3.  Until the school district completes the matrix
484required by paragraph (5)(3)(b), the calculation shall be based
485on the matrix that assigns the student to support level I of
486service as it existed prior to the 2000-2001 school year. When
487the school district completes the matrix, the amount of the
488payment shall be adjusted as needed.
489     (b)  The amount of the John M. McKay Scholarship shall be
490the calculated amount or the amount of the private school's
491tuition and fees, whichever is less. The amount of any
492assessment fee required by the participating private school may
493be paid from the total amount of the scholarship.
494     (c)  If the participating private school requires partial
495payment of tuition prior to the start of the academic year to
496reserve space for students admitted to the school, that partial
497payment may be paid by the Department of Education prior to the
498first quarterly payment of the year in which the John M. McKay
499Scholarship is awarded, up to a maximum of $1,000, and deducted
500from subsequent scholarship payments. If a student decides not
501to attend the participating private school, the partial
502reservation payment must be returned to the Department of
503Education by the participating private school. There is a limit
504of one reservation payment per student per year.
505     (c)1.(d)  The school district shall report all students who
506are attending a private school in the district under this
507program. The students with disabilities attending private
508schools on John M. McKay Scholarships shall be reported
509separately from other students reported for purposes of the
510Florida Education Finance Program.
511     2.  For program participants who are eligible under
512subparagraph (2)(a)2., the school district that is used as the
513basis for the calculation of the scholarship amount as provided
514in subparagraph (a)3. shall:
515     a.  Report to the department all such students who are
516attending a private school under this program.
517     b.  Be held harmless for such students from the weighted
518enrollment ceiling for group 2 programs in s. 1011.62(1)(d)3.a.
519during the first school year in which the students are reported.
520     (d)(e)  Following notification on July 1, September 1,
521December 1, or February 1 of the number of program participants,
522the department of Education shall transfer, from General Revenue
523funds only, the amount calculated under paragraph (b) from the
524school district's total funding entitlement under the Florida
525Education Finance Program and from authorized categorical
526accounts to a separate account for the scholarship program for
527quarterly disbursement to the parents of participating students.
528Funds may not be transferred from any funding provided to the
529Florida School for the Deaf and the Blind for program
530participants who are eligible under subparagraph (2)(a)2. For a
531student exiting a Department of Juvenile Justice commitment
532program who chooses to participate in the scholarship program,
533the amount of the John M. McKay Scholarship calculated pursuant
534to paragraph (b) shall be transferred from the school district
535in which the student last attended a public school prior to
536commitment to the Department of Juvenile Justice. When a student
537enters the scholarship program, the department of Education must
538receive all documentation required for the student's
539participation, including the private school's and student's fee
540schedules, at least 30 days before the first quarterly
541scholarship payment is made for the student. The Department of
542Education may not make any retroactive payments.
543     (e)(f)  Upon notification proper documentation reviewed and
544approved by the department that it has received the
545documentation required under paragraph (d) Department of
546Education, the Chief Financial Officer shall make scholarship
547payments in four equal amounts no later than September 1,
548November 1, February 1, and April 1 15 of each academic year in
549which the scholarship is in force. The initial payment shall be
550made after department of Education verification of admission
551acceptance, and subsequent payments shall be made upon
552verification of continued enrollment and attendance at the
553private school. Payment must be by individual warrant made
554payable to the student's parent and mailed by the department of
555Education to the private school of the parent's choice, and the
556parent shall restrictively endorse the warrant to the private
557school for deposit into the account of the private school.
558     (f)  Subsequent to each scholarship payment, the Department
559of Financial Services shall randomly review endorsed warrants to
560confirm compliance with endorsement requirements. The Department
561of Financial Services shall immediately report inconsistencies
562or irregularities to the department.
563     (11)(7)  LIABILITY.--No liability shall arise on the part
564of the state based on the award or use of a John M. McKay
565Scholarship.
566     (12)  SCOPE OF AUTHORITY.--The inclusion of eligible
567private schools within options available to Florida public
568school students does not expand the regulatory authority of the
569state, its officers, or any school district to impose any
570additional regulation of private schools beyond those reasonably
571necessary to enforce requirements expressly set forth in this
572section.
573     (13)(8)  RULES.--The State Board of Education shall adopt
574rules pursuant to ss. 120.536(1) and 120.54 to administer this
575section, including rules that school districts must use to
576expedite the development of a matrix of services based on an
577active a current individual education plan from another state or
578a foreign country for a transferring student with a disability
579who is a dependent child of a member of the United States Armed
580Forces. The rules must identify the appropriate school district
581personnel who must complete the matrix of services. For purposes
582of these rules, a transferring student with a disability is one
583who was previously enrolled as a student with a disability in an
584out-of-state or an out-of-country public or private school or
585agency program and who is transferring from out of state or from
586a foreign country pursuant to a parent's permanent change of
587station orders. However, the inclusion of eligible private
588schools within options available to Florida public school
589students does not expand the regulatory authority of the state,
590its officers, or any school district to impose any additional
591regulation of private schools beyond those reasonably necessary
592to enforce requirements expressly set forth in this section.
593     Section 2.  Section 220.187, Florida Statutes, is amended
594to read:
595     220.187  Credits for contributions to nonprofit
596scholarship-funding organizations.--
597     (1)  PURPOSE.--The purpose of this section is to:
598     (a)  Encourage private, voluntary contributions to
599nonprofit scholarship-funding organizations.
600     (b)  Expand educational opportunities for children of
601families that have limited financial resources.
602     (c)  Enable children in this state to achieve a greater
603level of excellence in their education.
604     (2)  DEFINITIONS.--As used in this section, the term:
605     (a)  "Department" means the Department of Revenue.
606     (b)  "Eligible contribution" means a monetary contribution
607from a taxpayer, subject to the restrictions provided in this
608section, to an eligible nonprofit scholarship-funding
609organization. The taxpayer making the contribution may not
610designate a specific child as the beneficiary of the
611contribution. The taxpayer may not contribute more than $5
612million to any single eligible nonprofit scholarship-funding
613organization.
614     (c)(d)  "Eligible nonprofit scholarship-funding
615organization" means a charitable organization that:
616     1.  Is exempt from federal income tax pursuant to s.
617501(c)(3) of the Internal Revenue Code.
618     2.  Is a Florida entity formed under chapter 607, chapter
619608, or chapter 617 and whose principal office is located in the
620state.
621     3.  and that Complies with the provisions of subsection (6)
622(4).
623     (d)(c)  "Eligible private nonpublic school" means a private
624nonpublic school, as defined in s. 1002.01(2), located in
625Florida that offers an education to students in any grades K-12
626and that meets the requirements in subsection (8) (6).
627     (e)  "Owner or operator" includes:
628     1.  An owner, president, officer, or director of an
629eligible nonprofit scholarship-funding organization or a person
630with equivalent decisionmaking authority over an eligible
631nonprofit scholarship-funding organization.
632     2.  An owner, operator, superintendent, or principal of an
633eligible private school or a person with equivalent
634decisionmaking authority over an eligible private school.
635     (e)  "Qualified student" means a student who qualifies for
636free or reduced-price school lunches under the National School
637Lunch Act and who:
638     (3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
639Income Tax Credit Scholarship Program is established. A student
640is eligible for a corporate income tax credit scholarship if the
641student qualifies for free or reduced-price school lunches under
642the National School Lunch Act and:
643     (a)1.  Was counted as a full-time equivalent student during
644the previous state fiscal year for purposes of state per-student
645funding;
646     (b)2.  Received a scholarship from an eligible nonprofit
647scholarship-funding organization or from the State of Florida
648during the previous school year; or
649     (c)3.  Is eligible to enter kindergarten or first grade.
650
651Contingent upon available funds, a student may continue in the
652scholarship program as long as the student's family income level
653does not exceed 200 percent of the federal poverty level.
654     (4)  SCHOLARSHIP PROHIBITIONS.--A student is not eligible
655for a scholarship while he or she is:
656     (a)  Enrolled in a school operating for the purpose of
657providing educational services to youth in Department of
658Juvenile Justice commitment programs;
659     (b)  Receiving a scholarship from another eligible
660nonprofit scholarship-funding organization under this section;
661     (c)  Receiving an educational scholarship pursuant to
662chapter 1002;
663     (d)  Participating in a home education program as defined
664in s. 1002.01(1);
665     (e)  Participating in a private tutoring program pursuant
666to s. 1002.43;
667     (f)  Participating in a virtual school, correspondence
668school, or distance learning program that receives state funding
669pursuant to the student's participation unless the participation
670is limited to no more than two courses per school year; or
671     (g)  Enrolled in the Florida School for the Deaf and the
672Blind.
673     (5)(3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
674CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
675     (a)  There is allowed a credit of 100 percent of an
676eligible contribution against any tax due for a taxable year
677under this chapter. However, such a credit may not exceed 75
678percent of the tax due under this chapter for the taxable year,
679after the application of any other allowable credits by the
680taxpayer. However, at least 5 percent of the total statewide
681amount authorized for the tax credit shall be reserved for
682taxpayers who meet the definition of a small business provided
683in s. 288.703(1) at the time of application. The credit granted
684by this section shall be reduced by the difference between the
685amount of federal corporate income tax taking into account the
686credit granted by this section and the amount of federal
687corporate income tax without application of the credit granted
688by this section.
689     (b)  The total amount of tax credits and carryforward of
690tax credits which may be granted each state fiscal year under
691this section is $88 million during the 2006-2007 fiscal year.
692The total amount of tax credits and carryforward of tax credits
693which may be granted under this section shall be adjusted each
694year thereafter, should the prior year's total tax credit and
695carryforward tax credit limits be obtained, by the same
696percentage as the increase or decrease in total funding,
697adjusted for Florida Retirement System changes if applicable,
698under the Florida Education Finance Program as provided in the
699General Appropriations Act workpapers. However, the total amount
700of tax credits that may be granted pursuant to this paragraph
701may not increase by more than 5 percent in any year. The
702Commissioner of Education shall certify to the department and
703notify eligible nonprofit scholarship-funding organizations of
704the resulting value of tax credits that may be granted within 30
705days after the General Appropriations Act becomes law. However,
706at least 1 percent of the total statewide amount authorized for
707the tax credit shall be reserved for taxpayers who meet the
708definition of a small business provided in s. 288.703(1) at the
709time of application.
710     (c)  A taxpayer who files a Florida consolidated return as
711a member of an affiliated group pursuant to s. 220.131(1) may be
712allowed the credit on a consolidated return basis; however, the
713total credit taken by the affiliated group is subject to the
714limitation established under paragraph (a).
715     (d)  Effective for tax years beginning January 1, 2006, a
716taxpayer may rescind all or part of its allocated tax credit
717under this section. The amount rescinded shall become available
718for purposes of the cap for that state fiscal year under this
719section to an eligible taxpayer as approved by the department if
720the taxpayer receives notice from the department that the
721rescindment has been accepted by the department and the taxpayer
722has not previously rescinded any or all of its tax credit
723allocation under this section more than once in the previous 3
724tax years. Any amount rescinded under this paragraph shall
725become available to an eligible taxpayer on a first-come, first-
726served basis based on tax credit applications received after the
727date the rescindment is accepted by the department.
728     (6)(4)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-
729FUNDING ORGANIZATIONS.--An eligible nonprofit scholarship-
730scholarship-funding organization:
731     (a)  Must comply with the antidiscrimination provisions of
73242 U.S.C. s. 2000d.
733     (b)  Must comply with the following background check
734requirements:
735     1.  All owners and operators as defined in subparagraph
736(2)(e)1. are subject to level 2 background screening as provided
737under chapter 435. The fingerprints for the background screening
738must be electronically submitted to the Department of Law
739Enforcement and can be taken by an authorized law enforcement
740agency or by an employee of the eligible nonprofit scholarship-
741funding organization or a private company who is trained to take
742fingerprints. However, the complete set of fingerprints of an
743owner or operator may not be taken by the owner or operator. The
744results of the state and national criminal history check shall
745be provided to the Department of Education for screening under
746chapter 435. The cost of the background screening may be borne
747by the eligible nonprofit scholarship-funding organization or
748the owner or operator.
749     2.  Every 5 years following employment or engagement to
750provide services or association with an eligible nonprofit
751scholarship-funding organization, each owner or operator must
752meet level 2 screening standards as described in s. 435.04, at
753which time the nonprofit scholarship-funding organization shall
754request the Department of Law Enforcement to forward the
755fingerprints to the Federal Bureau of Investigation for level 2
756screening. If the fingerprints of an owner or operator are not
757retained by the Department of Law Enforcement under subparagraph
7583., the owner or operator must electronically file a complete
759set of fingerprints with the Department of Law Enforcement. Upon
760submission of fingerprints for this purpose, the eligible
761nonprofit scholarship-funding organization shall request that
762the Department of Law Enforcement forward the fingerprints to
763the Federal Bureau of Investigation for level 2 screening, and
764the fingerprints shall be retained by the Department of Law
765Enforcement under subparagraph 3.
766     3.  Beginning July 1, 2007, all fingerprints submitted to
767the Department of Law Enforcement as required by this paragraph
768must be retained by the Department of Law Enforcement in a
769manner approved by rule and entered in the statewide automated
770fingerprint identification system authorized by s. 943.05(2)(b).
771The fingerprints must thereafter be available for all purposes
772and uses authorized for arrest fingerprint cards entered in the
773statewide automated fingerprint identification system pursuant
774to s. 943.051.
775     4.  Beginning July 1, 2007, the Department of Law
776Enforcement shall search all arrest fingerprint cards received
777under s. 943.051 against the fingerprints retained in the
778statewide automated fingerprint identification system under
779subparagraph 3. Any arrest record that is identified with an
780owner's or operator's fingerprints must be reported to the
781Department of Education. The Department of Education shall
782participate in this search process by paying an annual fee to
783the Department of Law Enforcement and by informing the
784Department of Law Enforcement of any change in the employment,
785engagement, or association status of the owners or operators
786whose fingerprints are retained under subparagraph 3. The
787Department of Law Enforcement shall adopt a rule setting the
788amount of the annual fee to be imposed upon the Department of
789Education for performing these services and establishing the
790procedures for the retention of owner and operator fingerprints
791and the dissemination of search results. The fee may be borne by
792the owner or operator of the nonprofit scholarship-funding
793organization.
794     5.  A nonprofit scholarship-funding organization whose
795owner or operator fails the level 2 background screening shall
796not be eligible to provide scholarships under this section.
797     6.  A nonprofit scholarship-funding organization whose
798owner or operator in the last 7 years has filed for personal
799bankruptcy or corporate bankruptcy in a corporation of which he
800or she owned more than 20 percent shall not be eligible to
801provide scholarships under this section.
802     (c)  Must not have an owner or operator who owns or
803operates an eligible private school that is participating in the
804scholarship program.
805     (d)(a)  Must An eligible nonprofit scholarship-funding
806organization shall provide scholarships, from eligible
807contributions, to eligible qualified students for:
808     1.  Tuition or textbook expenses for, or transportation to,
809an eligible private nonpublic school. At least 75 percent of the
810scholarship funding must be used to pay tuition expenses; or
811     2.  Transportation expenses to a Florida public school that
812is located outside the district in which the student resides or
813to a lab school as defined in s. 1002.32.
814     (e)(b)  Must An eligible nonprofit scholarship-funding
815organization shall give priority to eligible qualified students
816who received a scholarship from an eligible nonprofit
817scholarship-funding organization or from the State of Florida
818during the previous school year.
819     (f)  Must provide a scholarship to an eligible student on a
820first-come, first-served basis unless the student qualifies for
821priority pursuant to paragraph (e).
822     (g)  May not restrict or reserve scholarships for use at a
823particular private school or provide scholarships to a child of
824an owner or operator.
825     (h)  Must allow an eligible student to attend any eligible
826private school and must allow a parent to transfer a scholarship
827during a school year to any other eligible private school of the
828parent's choice.
829     (c)  The amount of a scholarship provided to any child for
830any single school year by all eligible nonprofit scholarship-
831funding organizations from eligible contributions shall not
832exceed the following annual limits:
833     1.  Three thousand five hundred dollars for a scholarship
834awarded to a student enrolled in an eligible nonpublic school.
835     2.  Five hundred dollars for a scholarship awarded to a
836student enrolled in a Florida public school that is located
837outside the district in which the student resides.
838     (d)  The amount of an eligible contribution which may be
839accepted by an eligible nonprofit scholarship-funding
840organization is limited to the amount needed to provide
841scholarships for qualified students which the organization has
842identified and for which vacancies in eligible nonpublic schools
843have been identified.
844     (i)(e)  Must obligate, in the same fiscal year in which the
845contribution was received, An eligible nonprofit scholarship-
846funding organization that receives an eligible contribution must
847spend 100 percent of the eligible contribution to provide
848scholarships; however, up to 25 percent of the total
849contribution may be carried forward for scholarships to be
850granted in the following same state fiscal year in which the
851contribution was received. No portion of eligible contributions
852may be used for administrative expenses. All interest accrued
853from contributions must be used for scholarships.
854     (j)  Must maintain separate accounts for scholarship funds
855and operating funds.
856     (k)  With the prior approval of the Department of
857Education, may transfer funds to another eligible nonprofit
858scholarship-funding organization if additional funds are
859required to meet scholarship demand at the receiving nonprofit
860scholarship-funding organization. A transfer shall be limited to
861the greater of $500,000 or 20 percent of the total contributions
862received by the nonprofit scholarship-funding organization
863making the transfer. All transferred funds must be deposited by
864the receiving nonprofit scholarship-funding organization into
865its scholarship accounts. All transferred amounts received by
866any nonprofit scholarship-funding organization must be
867separately disclosed in the annual financial and compliance
868audit required in this section.
869     (l)(f)  An eligible nonprofit scholarship-funding
870organization that receives eligible contributions Must provide
871to the Auditor General and the Department of Education an annual
872financial and compliance audit of its accounts and records
873conducted by an independent certified public accountant and in
874accordance with rules adopted by the Auditor General. The audit
875must be conducted in compliance with generally accepted auditing
876standards and must include a report on financial statements
877presented in accordance with generally accepted accounting
878principles set forth by the American Institute of Certified
879Public Accountants for not-for-profit organizations and a
880determination of compliance with the statutory eligibility and
881expenditure requirements set forth in this section. Audits must
882be provided to the Auditor General and the Department of
883Education within 180 days after completion of the eligible
884nonprofit scholarship-funding organization's fiscal year.
885     (m)  Must prepare and submit quarterly reports to the
886Department of Education pursuant to paragraph (9)(m). In
887addition, an eligible nonprofit scholarship-funding organization
888must submit in a timely manner any information requested by the
889Department of Education relating to the scholarship program.
890
891Any and all information and documentation provided to the
892Department of Education and the Auditor General relating to the
893identity of a taxpayer that provides an eligible contribution
894under this section shall remain confidential at all times in
895accordance with s. 213.053.
896     (g)  Payment of the scholarship by the eligible nonprofit
897scholarship-funding organization shall be by individual warrant
898or check made payable to the student's parent. If the parent
899chooses for his or her child to attend an eligible nonpublic
900school, the warrant or check must be mailed by the eligible
901nonprofit scholarship-funding organization to the nonpublic
902school of the parent's choice, and the parent shall
903restrictively endorse the warrant or check to the nonpublic
904school. An eligible nonprofit scholarship-funding organization
905shall ensure that, upon receipt of a scholarship warrant or
906check, the parent to whom the warrant or check is made
907restrictively endorses the warrant or check to the nonpublic
908school of the parent's choice for deposit into the account of
909the nonpublic school.
910     (7)(5)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
911PARTICIPATION OBLIGATIONS.--
912     (a)  The parent must select an eligible private school and
913apply for the admission of his or her child.
914     (b)  The parent must inform the child's school district
915when the parent withdraws his or her child to attend an eligible
916private school.
917     (c)  Any student participating in the scholarship program
918must remain in attendance throughout the school year unless
919excused by the school for illness or other good cause.
920     (d)  Each parent and each student has an obligation to the
921private school to comply with the private school's published
922policies.
923     (e)  The parent shall ensure that the student participating
924in the scholarship program takes the norm-referenced assessment
925offered by the private school. The parent may also choose to
926have the student participate in the statewide assessments
927pursuant to s. 1008.22. If the parent requests that the student
928participating in the scholarship program take statewide
929assessments pursuant to s. 1008.22, the parent is responsible
930for transporting the student to the assessment site designated
931by the school district.
932     (f)  Upon receipt of a scholarship warrant from the
933eligible nonprofit scholarship-funding organization, the parent
934to whom the warrant is made must restrictively endorse the
935warrant to the private school for deposit into the account of
936the private school. The parent may not designate any entity or
937individual associated with the participating private school as
938the parent's attorney in fact to endorse a scholarship warrant.
939A participant who fails to comply with this paragraph forfeits
940the scholarship. As a condition for scholarship payment pursuant
941to paragraph (4)(g), if the parent chooses for his or her child
942to attend an eligible nonpublic school, the parent must inform
943the child's school district within 15 days after such decision.
944     (8)(6)  PRIVATE ELIGIBLE NONPUBLIC SCHOOL ELIGIBILITY AND
945OBLIGATIONS.--An eligible private nonpublic school may be
946sectarian or nonsectarian and must:
947     (a)  Comply with all requirements for private schools
948participating in state school choice scholarship programs
949pursuant to s. 1002.421.
950     (b)  Provide to the eligible nonprofit scholarship-funding
951organization, upon request, all documentation required for the
952student's participation, including the private school's and
953student's fee schedules.
954     (c)  Be academically accountable to the parent for meeting
955the educational needs of the student by:
956     1.  At a minimum, annually providing to the parent a
957written explanation of the student's progress.
958     2.  Annually administering or making provision for students
959participating in the scholarship program to take one of the
960nationally norm-referenced tests identified by the Department of
961Education. Students with disabilities for whom standardized
962testing is not appropriate are exempt from this requirement. A
963participating private school must report a student's scores to
964the parent and to the independent research organization selected
965by the Department of Education as described in paragraph (9)(j).
966     3.  Cooperating with the scholarship student whose parent
967chooses to participate in the statewide assessments pursuant to
968s. 1008.32.
969
970The inability of a private school to meet the requirements of
971this subsection shall constitute a basis for the ineligibility
972of the private school to participate in the scholarship program
973as determined by the Department of Education.
974     (a)  Demonstrate fiscal soundness by being in operation for
975one school year or provide the Department of Education with a
976statement by a certified public accountant confirming that the
977nonpublic school desiring to participate is insured and the
978owner or owners have sufficient capital or credit to operate the
979school for the upcoming year serving the number of students
980anticipated with expected revenues from tuition and other
981sources that may be reasonably expected. In lieu of such a
982statement, a surety bond or letter of credit for the amount
983equal to the scholarship funds for any quarter may be filed with
984the department.
985     (b)  Comply with the antidiscrimination provisions of 42
986U.S.C. s. 2000d.
987     (c)  Meet state and local health and safety laws and codes.
988     (d)  Comply with all state laws relating to general
989regulation of nonpublic schools.
990     (9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The Department
991of Education shall:
992     (a)  Annually submit to the department, by March 15, a list
993of eligible nonprofit scholarship-funding organizations that
994meet the requirements of paragraph (2)(c).
995     (b)  Annually verify the eligibility of nonprofit
996scholarship-funding organizations that meet the requirements of
997paragraph (2)(c).
998     (c)  Annually verify the eligibility of private schools
999that meet the requirements of subsection (8).
1000     (d)  Annually verify the eligibility of expenditures as
1001provided in paragraph (6)(d) using the audit required by
1002paragraph (6)(l).
1003     (e)  Establish a toll-free hotline that provides parents
1004and private schools with information on participation in the
1005scholarship program.
1006     (f)  Establish a process by which individuals may notify
1007the Department of Education of any violation by a parent,
1008private school, or school district of state laws relating to
1009program participation. The Department of Education shall conduct
1010an inquiry of any written complaint of a violation of this
1011section, or make a referral to the appropriate agency for an
1012investigation, if the complaint is signed by the complainant and
1013is legally sufficient. A complaint is legally sufficient if it
1014contains ultimate facts that show that a violation of this
1015section or any rule adopted by the State Board of Education has
1016occurred. In order to determine legal sufficiency, the
1017Department of Education may require supporting information or
1018documentation from the complainant. A department inquiry is not
1019subject to the requirements of chapter 120.
1020     (g)  Require an annual, notarized, sworn compliance
1021statement by participating private schools certifying compliance
1022with state laws and shall retain such records.
1023     (h)  Cross-check the list of participating scholarship
1024students with the public school enrollment lists to avoid
1025duplication.
1026     (i)  In accordance with State Board of Education rule,
1027identify and select the nationally norm-referenced tests that
1028are comparable to the norm-referenced provisions of the Florida
1029Comprehensive Assessment Test (FCAT) provided that the FCAT may
1030be one of the tests selected. However, the Department of
1031Education may approve the use of an additional assessment by the
1032school if the assessment meets industry standards of quality and
1033comparability.
1034     (j)  Select an independent research organization, which may
1035be a public or private entity or university, to which
1036participating private schools must report the scores of
1037participating students on the nationally norm-referenced tests
1038administered by the private school. The independent research
1039organization must annually report to the Department of Education
1040on the year-to-year improvements of participating students. The
1041independent research organization must analyze and report
1042student performance data in a manner that protects the rights of
1043students and parents as mandated in 20 U.S.C. s. 1232g, the
1044Family Educational Rights and Privacy Act, and must not
1045disaggregate data to a level that will disclose the academic
1046level of individual students or of individual schools. To the
1047extent possible, the independent research organization must
1048accumulate historical performance data on students from the
1049Department of Education and private schools to describe baseline
1050performance and to conduct longitudinal studies. To minimize
1051costs and reduce time required for third-party analysis and
1052evaluation, the Department of Education shall conduct analyses
1053of matched students from public school assessment data and
1054calculate control group learning gains using an agreed-upon
1055methodology outlined in the contract with the third-party
1056evaluator. The sharing of student data must be in accordance
1057with requirements of 20 U.S.C. s. 1232g, the Family Educational
1058Rights and Privacy Act, and shall be for the sole purpose of
1059conducting the evaluation. All parties must preserve the
1060confidentiality of such information as required by law.
1061     (k)  Notify an eligible nonprofit scholarship-funding
1062organization of any of the organization's identified students
1063who are receiving educational scholarships pursuant to chapter
10641002.
1065     (l)  Notify an eligible nonprofit scholarship-funding
1066organization of any of the organization's identified students
1067who are receiving corporate income tax credit scholarships from
1068other eligible nonprofit scholarship-funding organizations.
1069     (m)  Require quarterly reports by an eligible nonprofit
1070scholarship-funding organization regarding the number of
1071students participating in the scholarship program, the private
1072schools at which the students are enrolled, and other
1073information deemed necessary by the Department of Education.
1074     (10)  COMMISSIONER OF EDUCATION AUTHORITY AND
1075OBLIGATIONS.--
1076     (a)  The Commissioner of Education shall deny, suspend, or
1077revoke a private school's participation in the scholarship
1078program if it is determined that the private school has failed
1079to comply with the provisions of this section. However, in
1080instances in which the noncompliance is correctable within a
1081reasonable amount of time and in which the health, safety, and
1082welfare of the students are not threatened, the commissioner may
1083issue a notice of noncompliance that shall provide the private
1084school with a timeframe within which to provide evidence of
1085compliance prior to taking action to suspend or revoke the
1086private school's participation in the scholarship program.
1087     (b)  The commissioner's determination is subject to the
1088following:
1089     1.  If the commissioner intends to deny, suspend, or revoke
1090a private school's participation in the scholarship program, the
1091Department of Education shall notify the private school of such
1092proposed action in writing by certified mail and regular mail to
1093the private school's address of record with the Department of
1094Education. The notification shall include the reasons for the
1095proposed action and notice of the timelines and procedures set
1096forth in this paragraph.
1097     2.  The private school that is adversely affected by the
1098proposed action shall have 15 days from receipt of the notice of
1099proposed action to file with the Department of Education's
1100agency clerk a request for a proceeding pursuant to ss. 120.569
1101and 120.57. If the private school is entitled to a hearing under
1102s. 120.57(1), the Department of Education shall forward the
1103request to the Division of Administrative Hearings.
1104     3.  Upon receipt of a request referred pursuant to this
1105paragraph, the director of the Division of Administrative
1106Hearings shall expedite the hearing and assign an administrative
1107law judge who shall commence a hearing within 30 days after the
1108receipt of the formal written request by the division and enter
1109a recommended order within 30 days after the hearing or within
111030 days after receipt of the hearing transcript, whichever is
1111later. Each party shall be allowed 10 days in which to submit
1112written exceptions to the recommended order. A final order shall
1113be entered by the agency within 30 days after the entry of a
1114recommended order. The provisions of this subparagraph may be
1115waived upon stipulation by all parties.
1116     (c)  The commissioner may immediately suspend payment of
1117scholarship funds if it is determined that there is probable
1118cause to believe that there is:
1119     1.  An imminent threat to the health, safety, and welfare
1120of the students; or
1121     2.  Fraudulent activity on the part of the private school.
1122
1123The commissioner's order suspending payment pursuant to this
1124paragraph may be appealed pursuant to the same procedures and
1125timelines as the notice of proposed action set forth in
1126paragraph (b).
1127     (11)  SCHOLARSHIP AMOUNT AND PAYMENT.--
1128     (a)  The amount of a scholarship provided to any student
1129for any single school year by an eligible nonprofit scholarship-
1130funding organization from eligible contributions shall not
1131exceed the following annual limits:
1132     1.  Three thousand seven hundred fifty dollars for a
1133scholarship awarded to a student enrolled in an eligible private
1134school.
1135     2.  Five hundred dollars for a scholarship awarded to a
1136student enrolled in a Florida public school that is located
1137outside the district in which the student resides or in a lab
1138school as defined in s. 1002.32.
1139     (b)  Payment of the scholarship by the eligible nonprofit
1140scholarship-funding organization shall be by individual warrant
1141made payable to the student's parent. If the parent chooses for
1142his or her child to attend an eligible private school, the
1143warrant must be delivered by the eligible nonprofit scholarship-
1144funding organization to the private school of the parent's
1145choice, and the parent shall restrictively endorse the warrant to
1146the private school. An eligible nonprofit scholarship-funding
1147organization shall ensure that the parent to whom the warrant is
1148made restrictively endorsed the warrant to the private school for
1149deposit into the account of the private school.
1150     (c)  An eligible nonprofit scholarship-funding organization
1151shall obtain verification from the private school of a student's
1152continued attendance at the school prior to each scholarship
1153payment.
1154     (d)  Payment of the scholarship shall be made by the
1155eligible nonprofit scholarship-funding organization no less
1156frequently than on a quarterly basis.
1157     (12)(7)  ADMINISTRATION; RULES.--
1158     (a)  If the credit granted pursuant to this section is not
1159fully used in any one year because of insufficient tax liability
1160on the part of the corporation, the unused amount may be carried
1161forward for a period not to exceed 3 years; however, any
1162taxpayer that seeks to carry forward an unused amount of tax
1163credit must submit an application for allocation of tax credits
1164or carryforward credits as required in paragraph (d) in the year
1165that the taxpayer intends to use the carryforward carry forward.
1166The total amount of tax credits and carryforward of tax credits
1167granted each state fiscal year under this section is $88
1168million. This carryforward applies to all approved contributions
1169made after January 1, 2002. A taxpayer may not convey, assign,
1170or transfer the credit authorized by this section to another
1171entity unless all of the assets of the taxpayer are conveyed,
1172assigned, or transferred in the same transaction.
1173     (b)  An application for a tax credit pursuant to this
1174section shall be submitted to the department on forms
1175established by rule of the department.
1176     (c)  The department and the Department of Education shall
1177develop a cooperative agreement to assist in the administration
1178of this section. The Department of Education shall be
1179responsible for annually submitting, by March 15, to the
1180department a list of eligible nonprofit scholarship-funding
1181organizations that meet the requirements of paragraph (2)(d) and
1182for monitoring eligibility of nonprofit scholarship-funding
1183organizations that meet the requirements of paragraph (2)(d),
1184eligibility of nonpublic schools that meet the requirements of
1185paragraph (2)(c), and eligibility of expenditures under this
1186section as provided in subsection (4).
1187     (d)  The department shall adopt rules necessary to
1188administer this section, including rules establishing
1189application forms and procedures and governing the allocation of
1190tax credits and carryforward credits under this section on a
1191first-come, first-served basis.
1192     (e)  The State Board Department of Education shall adopt
1193rules pursuant to ss. 120.536(1) and 120.54 necessary to
1194administer this section as it relates to the roles of the
1195Department of Education and the Commissioner of Education
1196determine eligibility of nonprofit scholarship-funding
1197organizations as defined in paragraph (2)(d) and according to
1198the provisions of subsection (4) and identify qualified students
1199as defined in paragraph (2)(e).
1200     (13)(8)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
1201contributions received by an eligible nonprofit
1202scholarship-funding organization shall be deposited in a manner
1203consistent with s. 17.57(2).
1204     Section 3.  Section 1002.421, Florida Statutes, is created
1205to read:
1206     1002.421  Rights and obligations of private schools
1207participating in state school choice scholarship programs.--
1208     (1)  A Florida private school participating in the
1209Corporate Income Tax Credit Scholarship Program established
1210pursuant to s. 220.187 or an educational scholarship program
1211established pursuant to this chapter must comply with all
1212requirements of this section in addition to private school
1213requirements outlined in s. 1002.42, specific requirements
1214identified within respective scholarship program laws, and other
1215provisions of Florida law that apply to private schools.
1216     (2)  A private school participating in a scholarship
1217program must be a Florida private school as defined in s.
12181002.01(2), must be registered in accordance with s. 1002.42,
1219and must:
1220     (a)  Comply with antidiscrimination provisions of 42 U.S.C.
1221s. 2000d.
1222     (b)  Notify the department of its intent to participate in
1223a scholarship program.
1224     (c)  Notify the department of any change in the school's
1225name, school director, mailing address, or physical location
1226within 15 days after the change.
1227     (d)  Complete student enrollment and attendance
1228verification requirements, including use of an on-line
1229attendance verification form, prior to scholarship payment.
1230     (e)  Annually complete and submit to the department a
1231notarized scholarship compliance statement certifying that all
1232school employees and contracted personnel with direct student
1233contact have undergone background screening pursuant to s.
1234943.0542.
1235     (f)  Demonstrate fiscal soundness and accountability by:
1236     1.  Being in operation for at least 3 school years or
1237obtaining a surety bond or letter of credit for the amount equal
1238to the scholarship funds for any quarter and filing the surety
1239bond or letter of credit with the department.
1240     2.  Requiring the parent of each scholarship student to
1241personally restrictively endorse the scholarship warrant to the
1242school. The school may not act as attorney in fact for the
1243parent of a scholarship student under the authority of a power
1244of attorney executed by such parent, or under any other
1245authority, to endorse scholarship warrants on behalf of such
1246parent.
1247     (g)  Meet applicable state and local health, safety, and
1248welfare laws, codes, and rules, including:
1249     1.  Fire safety.
1250     2.  Building safety.
1251     (h)  Employ or contract with teachers who hold
1252baccalaureate or higher degrees, have at least 3 years of
1253teaching experience in public or private schools, or have
1254special skills, knowledge, or expertise that qualifies them to
1255provide instruction in subjects taught.
1256     (i)  Require each employee and contracted personnel with
1257direct student contact to undergo a state and national
1258background screening, pursuant to s. 943.0542, by electronically
1259filing with the Department of Law Enforcement a complete set of
1260fingerprints taken by an authorized law enforcement agency or an
1261employee of the private school, a school district, or a private
1262company who is trained to take fingerprints and to be denied
1263employment or terminated if he or she fails to meet the
1264screening standards under s. 435.04. Results of the screening
1265shall be provided to the participating private school. For
1266purposes of this paragraph:
1267     1.  An "employee or contracted personnel with direct
1268student contact" means any employee or contracted personnel who
1269has unsupervised access to a scholarship student for whom the
1270private school is responsible.
1271     2.  The costs of fingerprinting and the background check
1272shall not be borne by the state.
1273     3.  Continued employment of an employee or contracted
1274personnel after notification that he or she has failed the
1275background screening under this paragraph shall cause a private
1276school to be ineligible for participation in a scholarship
1277program.
1278     4.  An employee or contracted personnel holding a valid
1279Florida teaching certificate who has been fingerprinted pursuant
1280to s. 1012.32 shall not be required to comply with the
1281provisions of this paragraph.
1282     (3)(a)  Beginning July 1, 2007, all fingerprints submitted
1283to the Department of Law Enforcement as required by this section
1284shall be retained by the Department of Law Enforcement in a
1285manner provided by rule and entered in the statewide automated
1286fingerprint identification system authorized by s. 943.05(2)(b).
1287Such fingerprints shall thereafter be available for all purposes
1288and uses authorized for arrest fingerprint cards entered in the
1289statewide automated fingerprint identification system pursuant
1290to s. 943.051.
1291     (b)  Beginning July 1, 2007, the Department of Law
1292Enforcement shall search all arrest fingerprint cards received
1293under s. 943.051 against the fingerprints retained in the
1294statewide automated fingerprint identification system under
1295paragraph (a). Any arrest record that is identified with the
1296retained fingerprints of a person subject to the background
1297screening under this section shall be reported to the employing
1298school with which the person is affiliated. Each private school
1299participating in a scholarship program is required to
1300participate in this search process by informing the Department
1301of Law Enforcement of any change in the employment or
1302contractual status of its personnel whose fingerprints are
1303retained under paragraph (a). The Department of Law Enforcement
1304shall adopt a rule setting the amount of the annual fee to be
1305imposed upon each private school for performing these searches
1306and establishing the procedures for the retention of private
1307school employee and contracted personnel fingerprints and the
1308dissemination of search results. The fee may be borne by the
1309private school or the person fingerprinted.
1310     (c)  Employees and contracted personnel whose fingerprints
1311are not retained by the Department of Law Enforcement under
1312paragraphs (a) and (b) are required to be refingerprinted and
1313must meet state and national background screening requirements
1314upon reemployment or reengagement to provide services in order
1315to comply with the requirements of this section.
1316     (d)  Every 5 years following employment or engagement to
1317provide services with a private school, employees or contracted
1318personnel required to be screened under this section must meet
1319screening standards under s. 435.04, at which time the private
1320school shall request the Department of Law Enforcement to
1321forward the fingerprints to the Federal Bureau of Investigation
1322for national processing. If the fingerprints of employees or
1323contracted personnel are not retained by the Department of Law
1324Enforcement under paragraph (a), employees and contracted
1325personnel must electronically file a complete set of
1326fingerprints with the Department of Law Enforcement. Upon
1327submission of fingerprints for this purpose, the private school
1328shall request that the Department of Law Enforcement forward the
1329fingerprints to the Federal Bureau of Investigation for national
1330processing, and the fingerprints shall be retained by the
1331Department of Law Enforcement under paragraph (a).
1332     (4)  The inability of a private school to meet the
1333requirements of this section shall constitute a basis for the
1334ineligibility of the private school to participate in a
1335scholarship program as determined by the department.
1336     (5)  The inclusion of eligible private schools within
1337options available to Florida public school students does not
1338expand the regulatory authority of the state, its officers, or
1339any school district to impose any additional regulation of
1340private schools beyond those reasonably necessary to enforce
1341requirements expressly set forth in this section.
1342     (6)  The State Board of Education shall adopt rules
1343pursuant to ss. 120.536(1) and 120.54 to administer this
1344section.
1345     Section 4.  This act shall take effect July 1, 2006.


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