Senate Bill sb2380

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    Florida Senate - 2007                                  SB 2380

    By Senator Webster





    9-1295-07

  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         2006-2007 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         redefining the term "adjusted federal income"

25         to account for the creation of the tax credit

26         scholarship program for families of students in

27         failing schools; providing for the credit to be

28         an addition to taxable income; amending s.

29         220.701, F.S.; directing the Department of

30         Revenue to deposit moneys received through the

31         corporate income tax into the Corporate Income

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 1         Tax Trust Fund rather than the General Revenue

 2         Fund; providing for unencumbered trust fund

 3         balances to be transferred into the General

 4         Revenue Fund; prescribing how transferred funds

 5         may be expended; amending s. 1001.10, F.S.;

 6         conforming provisions to the repeal of the

 7         Opportunity Scholarship Program; authorizing

 8         the Commissioner of Education to prepare and

 9         publish reports related to specified tax credit

10         programs; amending ss. 1001.42 and 1002.20,

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

12         the Opportunity Scholarship Program and the

13         creation of the tax credit program for families

14         of students attending schools failing to make

15         adequate progress; repealing s. 1002.38, F.S.,

16         which authorizes the Opportunity Scholarship

17         Program; amending s. 1002.39, F.S., to conform

18         to the repeal of the Opportunity Scholarship

19         Program; providing an effective date.

20  

21         WHEREAS, education is a fundamental value and a

22  paramount duty of the state, and

23         WHEREAS, the State Constitution requires the state to

24  provide for the free education of all children residing within

25  its borders, and

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

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

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

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

30  constitutional requirement, and

31  

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 1         WHEREAS, the Florida Supreme Court invalidated the

 2  Opportunity Scholarship Program because it allowed state funds

 3  to be disbursed to private schools, and

 4         WHEREAS, the Legislature created the Opportunity

 5  Scholarship Program to ensure that all children have a chance

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

 7         WHEREAS, the state is committed to improving the

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

 9  and

10         WHEREAS, there are some public schools that continue to

11  fail to make adequate progress based on the school performance

12  grading categories established by law, and

13         WHEREAS, respecting the constitutional mandate cited by

14  the Florida Supreme Court, the Legislature intends for the

15  state to develop and implement a comprehensive strategic

16  program to facilitate the improvement of schools that are

17  failing to make adequate progress, and

18         WHEREAS, facilitating the improvement in the

19  performance of these schools is a multiyear endeavor, and

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

21         WHEREAS, students assigned to schools that are failing

22  to make adequate progress should have the choice of attending

23  a higher-performing school while the state continues to

24  facilitate the improvement of these schools, and

25         WHEREAS, the Legislature intends to create a program to

26  provide an educational safety net to students assigned to

27  these schools, distinct from and without impeding the efforts

28  to help these schools improve, NOW, THEREFORE,

29  

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

31  

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 1         Section 1.  Section 1008.3455, Florida Statutes, is

 2  created to read:

 3         1008.3455  Improvement program for schools failing to

 4  make adequate progress.--

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

 6  develop and implement a comprehensive strategic program to

 7  facilitate the improvement of schools that are failing to make

 8  adequate progress based on the school performance grading

 9  categories established by law. The Legislature finds that

10  achieving meaningful and lasting progress in these schools

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

12  the Legislature that the program developed under this section

13  include a multiyear design and implementation schedule, with

14  measurable goals and objectives for these schools.

15         (2)  In coordination with the responsibilities

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

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

18  Speaker of the House of Representatives, no later than

19  February 1, 2008, a multifaceted program of policies and

20  practices targeted specifically toward schools in the "F"

21  grade category under s. 1008.34.

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

23  assessment of the extent to which new policies, or

24  enhancements to existing policies, in the following areas

25  would facilitate improvement at these schools:

26         1.  Capital improvements to school facilities;

27         2.  Salaries for teachers and staff;

28         3.  Incentives for outstanding faculty and staff to

29  transfer to these schools;

30         4.  Equipment and supplies;

31         5.  Technology infrastructure, hardware, or software;

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 1         6.  Incentives to encourage parental or other family

 2  participation; and

 3         7.  Mentoring and other community participation.

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

 5  priority and timeline for enacting, funding, and implementing

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

 7  shall identify those elements of the program which can be

 8  accomplished within existing statutory authority and those

 9  elements that will require new statutory authority.  The

10  program must include specific recommendations for action by

11  the Legislature.

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

13  the program required by this section, the commissioner shall

14  create an advisory committee comprised of at least two

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

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

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

18  any other individuals the commissioner deems appropriate.

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

20  commissioner shall consult with:

21         1.    The Office of Program Policy Analysis and

22  Government Accountability; and

23         2.  The district community assessment teams assigned

24  under s. 1008.345.

25         (4)  The program shall be developed in coordination

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

27  initiatives of the Department of Education or the State Board

28  of Education.

29         (5)  The commissioner shall report annually to the

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

31  House of Representatives on implementation of the program.

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 1         Section 2.  Section 220.187, Florida Statutes, is

 2  amended to read:

 3         220.187  Credits for contributions to nonprofit

 4  scholarship-funding organizations; families that have limited

 5  financial resources.--

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

 7         (a)  Encourage private, voluntary contributions to

 8  nonprofit scholarship-funding organizations.

 9         (b)  Expand educational opportunities for children of

10  families that have limited financial resources.

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

12  level of excellence in their education.

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

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

15         (b)  "Eligible contribution" means a monetary

16  contribution from a taxpayer, subject to the restrictions

17  provided in this section, to an eligible nonprofit

18  scholarship-funding organization. The taxpayer making the

19  contribution may not designate a specific child as the

20  beneficiary of the contribution.

21         (c)  "Eligible nonprofit scholarship-funding

22  organization" means a charitable organization that:

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

24  501(c)(3) of the Internal Revenue Code;

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

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

27  located in the state; and

28         3.  Complies with the provisions of subsection (6).

29  

30  An eligible nonprofit scholarship-funding organization that is

31  authorized to provide scholarships under s. 220.1875 may,

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 1  subject to approval by the Department of Education, be

 2  authorized to provide scholarships under this section.

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

 4  as defined in s. 1002.01(2), located in Florida which offers

 5  an education to students in any grades K-12 and that meets the

 6  requirements in subsection (8).

 7         (e)  "Owner or operator" includes:

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

 9  eligible nonprofit scholarship-funding organization or a

10  person with equivalent decisionmaking authority over an

11  eligible nonprofit scholarship-funding organization.

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

13  an eligible private school or a person with equivalent

14  decisionmaking authority over an eligible private school.

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

16  Income Tax Credit Scholarship Program is established. A

17  student is eligible for a corporate income tax credit

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

19  school lunches under the National School Lunch Act and:

20         (a)  Was counted as a full-time equivalent student

21  during the previous state fiscal year for purposes of state

22  per-student funding;

23         (b)  Received a scholarship from an eligible nonprofit

24  scholarship-funding organization or from the State of Florida

25  during the previous school year; or

26         (c)  Is eligible to enter kindergarten or first grade.

27  

28  Contingent upon available funds, a student may continue in the

29  scholarship program as long as the student's family income

30  level does not exceed 200 percent of the federal poverty

31  level.

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

 2  eligible for a scholarship while he or she is:

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

 4  providing educational services to youth in Department of

 5  Juvenile Justice commitment programs;

 6         (b)  Receiving a scholarship from another eligible

 7  nonprofit scholarship-funding organization under this section;

 8         (c)  Receiving an educational scholarship pursuant to

 9  chapter 1002;

10         (d)  Participating in a home education program as

11  defined in s. 1002.01(1);

12         (e)  Participating in a private tutoring program

13  pursuant to s. 1002.43;

14         (f)  Participating in a virtual school, correspondence

15  school, or distance learning program that receives state

16  funding pursuant to the student's participation unless the

17  participation is limited to no more than two courses per

18  school year; or

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

20  the Blind.

21         (5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

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

24  eligible contribution against any tax due for a taxable year

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

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

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

28  the taxpayer. The credit granted by this section shall be

29  reduced by the difference between the amount of federal

30  corporate income tax taking into account the credit granted by

31  

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 1  this section and the amount of federal corporate income tax

 2  without application 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 $88 million. At least 1 percent of the

 6  total statewide amount authorized for the tax credit shall be

 7  reserved for taxpayers who meet the definition of a small

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

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

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

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

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

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

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

15  a taxpayer may rescind all or part of its allocated tax credit

16  under this section. The amount rescinded shall become

17  available for purposes of the cap for that state fiscal year

18  under this section to an eligible taxpayer as approved by the

19  department if the taxpayer receives notice from the department

20  that the rescindment has been accepted by the department and

21  the taxpayer has not previously rescinded any or all of its

22  tax credit allocation under this section more than once in the

23  previous 3 tax years. Any amount rescinded under this

24  paragraph shall become available to an eligible taxpayer on a

25  first-come, first-served basis based on tax credit

26  applications received after the date the rescindment is

27  accepted by the department.

28         (6)  OBLIGATIONS OF ELIGIBLE NONPROFIT

29  SCHOLARSHIP-FUNDING ORGANIZATIONS.--An eligible nonprofit

30  scholarship-funding organization:

31  

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 1         (a)  Must comply with the antidiscrimination provisions

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

 3         (b)  Must comply with the following background check

 4  requirements:

 5         1.  All owners and operators as defined in subparagraph

 6  (2)(e)1. are, upon employment or engagement to provide

 7  services, subject to level 2 background screening as provided

 8  under chapter 435. The fingerprints for the background

 9  screening must be electronically submitted to the Department

10  of Law Enforcement and can be taken by an authorized law

11  enforcement agency or by an employee of the eligible nonprofit

12  scholarship-funding organization or a private company who is

13  trained to take fingerprints. However, the complete set of

14  fingerprints of an owner or operator may not be taken by the

15  owner or operator. The results of the state and national

16  criminal history check shall be provided to the Department of

17  Education for screening under chapter 435. The cost of the

18  background screening may be borne by the eligible nonprofit

19  scholarship-funding organization or the owner or operator.

20         2.  Every 5 years following employment or engagement to

21  provide services or association with an eligible nonprofit

22  scholarship-funding organization, each owner or operator must

23  meet level 2 screening standards as described in s. 435.04, at

24  which time the nonprofit scholarship-funding organization

25  shall request the Department of Law Enforcement to forward the

26  fingerprints to the Federal Bureau of Investigation for level

27  2 screening. If the fingerprints of an owner or operator are

28  not retained by the Department of Law Enforcement under

29  subparagraph 3., the owner or operator must electronically

30  file a complete set of fingerprints with the Department of Law

31  Enforcement. Upon submission of fingerprints for this purpose,

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 1  the eligible nonprofit scholarship-funding organization shall

 2  request that the Department of Law Enforcement forward the

 3  fingerprints to the Federal Bureau of Investigation for level

 4  2 screening, and the fingerprints shall be retained by the

 5  Department of Law Enforcement under subparagraph 3.

 6         3.  Beginning July 1, 2007, all fingerprints submitted

 7  to the Department of Law Enforcement as required by this

 8  paragraph must be retained by the Department of Law

 9  Enforcement in a manner approved by rule and entered in the

10  statewide automated fingerprint identification system

11  authorized by s. 943.05(2)(b). The fingerprints must

12  thereafter be available for all purposes and uses authorized

13  for arrest fingerprint cards entered in the statewide

14  automated fingerprint identification system pursuant to s.

15  943.051.

16         4.  Beginning July 1, 2007, the Department of Law

17  Enforcement shall search all arrest fingerprint cards received

18  under s. 943.051 against the fingerprints retained in the

19  statewide automated fingerprint identification system under

20  subparagraph 3. Any arrest record that is identified with an

21  owner's or operator's fingerprints must be reported to the

22  Department of Education. The Department of Education shall

23  participate in this search process by paying an annual fee to

24  the Department of Law Enforcement and by informing the

25  Department of Law Enforcement of any change in the employment,

26  engagement, or association status of the owners or operators

27  whose fingerprints are retained under subparagraph 3. The

28  Department of Law Enforcement shall adopt a rule setting the

29  amount of the annual fee to be imposed upon the Department of

30  Education for performing these services and establishing the

31  procedures for the retention of owner and operator

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 1  fingerprints and the dissemination of search results. The fee

 2  may be borne by the owner or operator of the nonprofit

 3  scholarship-funding organization.

 4         5.  A nonprofit scholarship-funding organization whose

 5  owner or operator fails the level 2 background screening shall

 6  not be eligible to provide scholarships under this section.

 7         6.  A nonprofit scholarship-funding organization whose

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

 9  bankruptcy or corporate bankruptcy in a corporation of which

10  he or she owned more than 20 percent shall not be eligible to

11  provide scholarships under this section.

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

13  operates an eligible private school that is participating in

14  the scholarship program.

15         (d)  Must provide scholarships, from eligible

16  contributions, to eligible students for:

17         1.  Tuition or textbook expenses for, or transportation

18  to, an eligible private school. At least 75 percent of the

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

20         2.  Transportation expenses to a Florida public school

21  that is located outside the district in which the student

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

23         (e)  Must give priority to eligible students who

24  received a scholarship from an eligible nonprofit

25  scholarship-funding organization or from the State of Florida

26  during the previous school year or who received an opportunity

27  scholarship under former s. 1002.38 during the final quarter

28  of the 2006-2007 school year.

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

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

31  qualifies for priority pursuant to paragraph (e).

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

 2  at a particular private school or provide scholarships to a

 3  child of an owner or operator.

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

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

 6  scholarship during a school year to any other eligible private

 7  school of the parent's choice.

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

 9  the contribution was received, 100 percent of the eligible

10  contribution to provide annual or partial-year scholarships;

11  however, up to 25 percent of the total contribution may be

12  carried forward for expenditure in the following state fiscal

13  year. A scholarship-funding organization must, before granting

14  a scholarship for an academic year, document each scholarship

15  student's eligibility for that academic year. A

16  scholarship-funding organization may not grant multiyear

17  scholarships in one approval process. No portion of eligible

18  contributions may be used for administrative expenses. All

19  interest accrued from contributions must be used for

20  scholarships.

21         (j)  Must maintain separate accounts for scholarship

22  funds and operating funds.

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

24  Education, may transfer funds to another eligible nonprofit

25  scholarship-funding organization if additional funds are

26  required to meet scholarship demand at the receiving nonprofit

27  scholarship-funding organization. A transfer shall be limited

28  to the greater of $500,000 or 20 percent of the total

29  contributions received by the nonprofit scholarship-funding

30  organization making the transfer. All transferred funds must

31  be deposited by the receiving nonprofit scholarship-funding

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 1  organization into its scholarship accounts. All transferred

 2  amounts received by any nonprofit scholarship-funding

 3  organization must be separately disclosed in the annual

 4  financial and compliance audit required in this section.

 5         (l)  Must provide to the Auditor General and the

 6  Department of Education an annual financial and compliance

 7  audit of its accounts and records conducted by an independent

 8  certified public accountant and in accordance with rules

 9  adopted by the Auditor General. The audit must be conducted in

10  compliance with generally accepted auditing standards and must

11  include a report on financial statements presented in

12  accordance with generally accepted accounting principles set

13  forth by the American Institute of Certified Public

14  Accountants for not-for-profit organizations and a

15  determination of compliance with the statutory eligibility and

16  expenditure requirements set forth in this section. Audits

17  must be provided to the Auditor General and the Department of

18  Education within 180 days after completion of the eligible

19  nonprofit scholarship-funding organization's fiscal year.

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

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

22  addition, an eligible nonprofit scholarship-funding

23  organization must submit in a timely manner any information

24  requested by the Department of Education relating to the

25  scholarship program.

26  

27  Any and all information and documentation provided to the

28  Department of Education and the Auditor General relating to

29  the identity of a taxpayer that provides an eligible

30  contribution under this section shall remain confidential at

31  all times in accordance with s. 213.053.

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 1         (7)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM

 2  PARTICIPATION.--

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

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

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

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

 7  eligible private school.

 8         (c)  Any student participating in the scholarship

 9  program must remain in attendance throughout the school year

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

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

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

13  published policies.

14         (e)  The parent shall ensure that the student

15  participating in the scholarship program takes the

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

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

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

19  requests that the student participating in the scholarship

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

21  parent is responsible for transporting the student to the

22  assessment site designated by the school district.

23         (f)  Upon receipt of a scholarship warrant from the

24  eligible nonprofit scholarship-funding organization, the

25  parent to whom the warrant is made must restrictively endorse

26  the warrant to the private school for deposit into the account

27  of the private school. The parent may not designate any entity

28  or individual associated with the participating private school

29  as the parent's attorney in fact to endorse a scholarship

30  warrant. A participant who fails to comply with this paragraph

31  forfeits the scholarship.

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 1         (8)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--An

 2  eligible private school may be sectarian or nonsectarian and

 3  must:

 4         (a)  Comply with all requirements for private schools

 5  participating in state school choice scholarship programs

 6  pursuant to s. 1002.421.

 7         (b)  Provide to the eligible nonprofit

 8  scholarship-funding organization, upon request, all

 9  documentation required for the student's participation,

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

11         (c)  Be academically accountable to the parent for

12  meeting the educational needs of the student by:

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

14  written explanation of the student's progress.

15         2.  Annually administering or making provision for

16  students participating in the scholarship program to take one

17  of the nationally norm-referenced tests identified by the

18  Department of Education. Students with disabilities for whom

19  standardized testing is not appropriate are exempt from this

20  requirement. A participating private school must report a

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

22  organization selected by the Department of Education as

23  described in paragraph (9)(j).

24         3.  Cooperating with the scholarship student whose

25  parent chooses to participate in the statewide assessments

26  pursuant to s. 1008.32.

27         (d)  Employ or contract with teachers who have regular

28  and direct contact with each student receiving a scholarship

29  under this section at the school's physical location.

30  

31  

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

 2  this subsection shall constitute a basis for the ineligibility

 3  of the private school to participate in the scholarship

 4  program as determined by the Department of Education.

 5         (9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The

 6  Department of Education shall:

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

 8  list of eligible nonprofit scholarship-funding organizations

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

10         (b)  Annually verify the eligibility of nonprofit

11  scholarship-funding organizations that meet the requirements

12  of paragraph (2)(c).

13         (c)  Annually verify the eligibility of private schools

14  that meet the requirements of subsection (8).

15         (d)  Annually verify the eligibility of expenditures as

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

17  paragraph (6)(l).

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

19  parents and private schools with information on participation

20  in the scholarship program.

21         (f)  Establish a process by which individuals may

22  notify the Department of Education of any violation by a

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

24  relating to program participation. The Department of Education

25  shall conduct an inquiry of any written complaint of a

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

27  appropriate agency for an investigation, if the complaint is

28  signed by the complainant and is legally sufficient. A

29  complaint is legally sufficient if it contains ultimate facts

30  that show that a violation of this section or any rule adopted

31  by the State Board of Education has occurred. In order to

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 1  determine legal sufficiency, the Department of Education may

 2  require supporting information or documentation from the

 3  complainant. A department inquiry is not subject to the

 4  requirements of chapter 120.

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

 6  statement by participating private schools certifying

 7  compliance with state laws and shall retain such records.

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

 9  students with the public school enrollment lists to avoid

10  duplication.

11         (i)  In accordance with State Board of Education rule,

12  identify and select the nationally norm-referenced tests that

13  are comparable to the norm-referenced provisions of the

14  Florida Comprehensive Assessment Test (FCAT) provided that the

15  FCAT may be one of the tests selected. However, the Department

16  of Education may approve the use of an additional assessment

17  by the school if the assessment meets industry standards of

18  quality and comparability.

19         (j)  Select an independent research organization, which

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

21  participating private schools must report the scores of

22  participating students on the nationally norm-referenced tests

23  administered by the private school. The independent research

24  organization must annually report to the Department of

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

26  students. The independent research organization must analyze

27  and report student performance data in a manner that protects

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

29  1232g, the Family Educational Rights and Privacy Act, and must

30  not disaggregate data to a level that will disclose the

31  academic level of individual students or of individual

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 1  schools. To the extent possible, the independent research

 2  organization must accumulate historical performance data on

 3  students from the Department of Education and private schools

 4  to describe baseline performance and to conduct longitudinal

 5  studies. To minimize costs and reduce time required for

 6  third-party analysis and evaluation, the Department of

 7  Education shall conduct analyses of matched students from

 8  public school assessment data and calculate control group

 9  learning gains using an agreed-upon methodology outlined in

10  the contract with the third-party evaluator. The sharing of

11  student data must be in accordance with requirements of 20

12  U.S.C. s. 1232g, the Family Educational Rights and Privacy

13  Act, and shall be for the sole purpose of conducting the

14  evaluation. All parties must preserve the confidentiality of

15  such information as required by law.

16         (k)  Notify an eligible nonprofit scholarship-funding

17  organization of any of the organization's identified students

18  who are receiving educational scholarships pursuant to chapter

19  1002.

20         (l)  Notify an eligible nonprofit scholarship-funding

21  organization of any of the organization's identified students

22  who are receiving corporate income tax credit scholarships

23  from other eligible nonprofit scholarship-funding

24  organizations.

25         (m)  Require quarterly reports by an eligible nonprofit

26  scholarship-funding organization regarding the number of

27  students participating in the scholarship program, the private

28  schools at which the students are enrolled, and other

29  information deemed necessary by the Department of Education.

30         (n)1.  Conduct random site visits to private schools

31  participating in the Corporate Tax Credit Scholarship Program.

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 1  The purpose of the site visits is solely to verify the

 2  information reported by the schools concerning the enrollment

 3  and attendance of students, the credentials of teachers,

 4  background screening of teachers, and teachers' fingerprinting

 5  results. The Department of Education may not make more than

 6  seven random site visits each year and may not make more than

 7  one random site visit each year to the same private school.

 8         2.  Annually, by December 15, report to the Governor,

 9  the President of the Senate, and the Speaker of the House of

10  Representatives the Department of Education's actions with

11  respect to implementing accountability in the scholarship

12  program under this section and s. 1002.421, any substantiated

13  allegations or violations of law or rule by an eligible

14  private school under this program concerning the enrollment

15  and attendance of students, the credentials of teachers,

16  background screening of teachers, and teachers' fingerprinting

17  results and the corrective action taken by the Department of

18  Education.

19         (10)  COMMISSIONER OF EDUCATION AUTHORITY AND

20  OBLIGATIONS.--

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

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

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

24  to comply with the provisions of this section. However, in

25  instances in which the noncompliance is correctable within a

26  reasonable amount of time and in which the health, safety, or

27  welfare of the students is not threatened, the commissioner

28  may issue a notice of noncompliance that shall provide the

29  private school with a timeframe within which to provide

30  evidence of compliance prior to taking action to suspend or

31  

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 1  revoke the private school's participation in the scholarship

 2  program.

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

 4  following:

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

 6  revoke a private school's participation in the scholarship

 7  program, the Department of Education shall notify the private

 8  school of such proposed action in writing by certified mail

 9  and regular mail to the private school's address of record

10  with the Department of Education. The notification shall

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

12  timelines and procedures set forth in this paragraph.

13         2.  The private school that is adversely affected by

14  the proposed action shall have 15 days from receipt of the

15  notice of proposed action to file with the Department of

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

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

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

19  shall forward the request to the Division of Administrative

20  Hearings.

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

22  paragraph, the director of the Division of Administrative

23  Hearings shall expedite the hearing and assign an

24  administrative law judge who shall commence a hearing within

25  30 days after the receipt of the formal written request by the

26  division and enter a recommended order within 30 days after

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

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

29  days in which to submit written exceptions to the recommended

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

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

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 1  this subparagraph may be waived upon stipulation by all

 2  parties.

 3         (c)  The commissioner may immediately suspend payment

 4  of scholarship funds if it is determined that there is

 5  probable cause to believe that there is:

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

 7  welfare of the students; or

 8         2.  Fraudulent activity on the part of the private

 9  school. Notwithstanding s. 1002.22(3), in incidents of alleged

10  fraudulent activity pursuant to this section, the Department

11  of Education's Office of Inspector General is authorized to

12  release personally identifiable records or reports of students

13  to the following persons or organizations:

14         a.  A court of competent jurisdiction in compliance

15  with an order of that court or the attorney of record in

16  accordance with a lawfully issued subpoena, consistent with

17  the Family Educational Rights and Privacy Act, 20 U.S.C. s.

18  1232g.

19         b.  A person or entity authorized by a court of

20  competent jurisdiction in compliance with an order of that

21  court or the attorney of record pursuant to a lawfully issued

22  subpoena, consistent with the Family Educational Rights and

23  Privacy Act, 20 U.S.C. s. 1232g.

24         c.  Any person, entity, or authority issuing a subpoena

25  for law enforcement purposes when the court or other issuing

26  agency has ordered that the existence or the contents of the

27  subpoena or the information furnished in response to the

28  subpoena not be disclosed, consistent with the Family

29  Educational Rights and Privacy Act, 20 U.S.C. s. 1232g, and 34

30  C.F.R. s. 99.31.

31  

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 1  The commissioner's order suspending payment pursuant to this

 2  paragraph may be appealed pursuant to the same procedures and

 3  timelines as the notice of proposed action set forth in

 4  paragraph (b).

 5         (11)  SCHOLARSHIP AMOUNT AND PAYMENT.--

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

 7  student for any single school year by an eligible nonprofit

 8  scholarship-funding organization from eligible contributions

 9  shall not exceed the following annual limits:

10         1.  Three thousand seven hundred fifty dollars for a

11  scholarship awarded to a student enrolled in an eligible

12  private school.

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

14  student enrolled in a Florida public school that is located

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

16  school as defined in s. 1002.32.

17         (b)  Payment of the scholarship by the eligible

18  nonprofit scholarship-funding organization shall be by

19  individual warrant made payable to the student's parent. If

20  the parent chooses that his or her child attend an eligible

21  private school, the warrant must be delivered by the eligible

22  nonprofit scholarship-funding organization to the private

23  school of the parent's choice, and the parent shall

24  restrictively endorse the warrant to the private school. An

25  eligible nonprofit scholarship-funding organization shall

26  ensure that the parent to whom the warrant is made

27  restrictively endorsed the warrant to the private school for

28  deposit into the account of the private school.

29         (c)  An eligible nonprofit scholarship-funding

30  organization shall obtain verification from the private school

31  

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

 2  each scholarship payment.

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

 4  eligible nonprofit scholarship-funding organization no less

 5  frequently than on a quarterly basis.

 6         (12)  ADMINISTRATION; RULES.--

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

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

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

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

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

12  amount of tax credit must submit an application for allocation

13  of tax credits or carryforward credits as required in

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

15  carryforward. This carryforward applies to all approved

16  contributions made after January 1, 2002. A taxpayer may not

17  convey, assign, or transfer the credit authorized by this

18  section to another entity unless all of the assets of the

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

20  transaction.

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

22  section shall be submitted to the department on forms

23  established by rule of the department.

24         (c)  The department and the Department of Education

25  shall develop a cooperative agreement to assist in the

26  administration of this section.

27         (d)  The department shall adopt rules necessary to

28  administer this section, including rules establishing

29  application forms and procedures and governing the allocation

30  of tax credits and carryforward credits under this section on

31  a first-come, first-served basis.

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

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

 3  section as it relates to the roles of the Department of

 4  Education and the Commissioner of Education.

 5         (13)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--

 6         (a)  All eligible contributions received by an eligible

 7  nonprofit scholarship-funding organization shall be deposited

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

 9         (b)  A nonprofit scholarship-funding organization that

10  is authorized to receive donations and distribute scholarships

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

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

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

14  distribution as scholarships in one program exceeds the demand

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

16  organization may, with approval from the Department of

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

18  other program.

19         Section 3.  Section 220.1875, Florida Statutes, is

20  created to read:

21         220.1875  Credits for contributions to nonprofit

22  scholarship-funding organizations; families of students

23  attending schools failing to make adequate progress.--

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

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

26  multiyear, comprehensive strategic program to facilitate the

27  improvement of schools that are failing to make adequate

28  progress based on school performance grading categories,

29  students attending failing schools are not denied the

30  opportunity to gain the knowledge and skills necessary for

31  

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

 2  work.

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

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

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

 6  paramount duty of the state.

 7         (c)  Complement the constitutional requirement to

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

 9  system of free public schools by providing educational

10  opportunities to students attending failing public schools

11  without impeding the ability of those schools to improve.

12         (d)  Encourage private, voluntary contributions to

13  nonprofit scholarship-funding organizations.

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

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

16         (b)  "Eligible contribution" means a monetary

17  contribution from a taxpayer, subject to the restrictions

18  provided in this section, to an eligible nonprofit

19  scholarship-funding organization. The taxpayer making the

20  contribution may not designate a specific child as the

21  beneficiary of the contribution. The taxpayer may not

22  contribute more than $5 million to any single eligible

23  nonprofit scholarship-funding organization.

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

25  school located in Florida which offers an education to

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

27  subsection (9).

28         (d)  "Eligible nonprofit scholarship-funding

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

30  220.187(2)(c) which is exempt from federal income tax pursuant

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

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

 2  scholarship-funding organization that is authorized to provide

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

 4  Department of Education, be authorized to provide scholarships

 5  under this section.

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

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

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

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

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

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

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

13         2.  Has been in attendance elsewhere in the public

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

15  next school year; or

16         3.  Is entering kindergarten or first grade and has

17  been notified that the student has been assigned to such

18  school for the next school year.

19  

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

21  school operating for the purpose of providing educational

22  services to youth in commitment programs of the Department of

23  Juvenile Justice.

24         (3)  SCHOOL DISTRICT OBLIGATIONS.--

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

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

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

28  period:

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

30  such designation is made of all options available pursuant to

31  this section;

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

 2  enroll the student in another public school within the

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

 4  1008.34 as a school performing higher than the school in which

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

 6  been assigned, but not less than performance grade category

 7  "C"; and

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

 9  eligibility to receive a scholarship under this section to

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

11  public school outside the district which has been designated

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

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

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

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

16  nonpublic school.

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

18  available space in an adjacent school district shall accept

19  students qualified under this section and report the students

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

21  Education Finance Program.

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

23  attending nonpublic schools under this section, the school

24  district shall provide locations and times to take all

25  statewide assessments required pursuant to s. 1008.22.

26         (d)  Students with disabilities who are eligible to

27  receive services from the school district under federal or

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

29  remain eligible to receive services from the school district

30  as provided by federal or state law.

31  

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 1         (4)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

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

 4  eligible contribution against any tax due for a taxable year

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

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

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

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

 9  statewide amount authorized for the tax credit shall be

10  reserved for taxpayers who meet the definition of a small

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

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

13  difference between the amount of federal corporate income tax,

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

15  the amount of federal corporate income tax without application

16  of the credit granted by this section.

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

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

19  under this section is $5 million.

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

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

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

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

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

25         (5)  OBLIGATIONS OF ELIGIBLE NONPROFIT

26  SCHOLARSHIP-FUNDING ORGANIZATIONS.--

27         (a)  An eligible nonprofit scholarship-funding

28  organization shall provide scholarships, from eligible

29  contributions, to qualified students for:

30         1.  Tuition and fees for a qualified student enrolled

31  in an eligible nonpublic school.

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 1         2.  Transportation expenses to a Florida public school

 2  that is located outside the district in which the qualified

 3  student resides.

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

 5  nonprofit scholarship-funding organization shall give priority

 6  to qualified students who received a scholarship to attend an

 7  eligible nonpublic school during the previous school year.

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

 9  qualified student for any single school year by all eligible

10  nonprofit scholarship-funding organizations from eligible

11  contributions may not exceed the following annual limits:

12         1.  For qualified students who choose to attend an

13  eligible nonpublic school, the lesser of:

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

15  eligible nonpublic school; or

16         b.  A calculated amount equivalent to the base student

17  allocation in the Florida Education Finance Program multiplied

18  by the appropriate cost factor for the educational program

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

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

21  cost differential. In addition, the calculated amount shall

22  include the per-student share of instructional materials

23  funds, technology funds, and other categorical funds.

24         2.  For qualified students who choose to attend a

25  higher-performing public school that is located outside the

26  district in which the student resides, $500.

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

28  be accepted by an eligible nonprofit scholarship-funding

29  organization is limited to the amount needed to provide

30  scholarships for qualified students which the organization has

31  

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 1  identified and for which vacancies in eligible nonpublic

 2  schools have been identified.

 3         (e)  An eligible nonprofit scholarship-funding

 4  organization that receives an eligible contribution must spend

 5  100 percent of the eligible contribution to provide

 6  scholarships in the same state fiscal year in which the

 7  contribution was received. No portion of eligible

 8  contributions may be used for administrative expenses. All

 9  interest accrued from contributions must be used for

10  scholarships.

11         (f)  An eligible nonprofit scholarship-funding

12  organization that receives eligible contributions must provide

13  to the Auditor General an annual financial and compliance

14  audit of its accounts and records conducted by an independent

15  certified public accountant and in accordance with rules

16  adopted by the Auditor General.

17         (g)  Payment of the scholarship by the eligible

18  nonprofit scholarship-funding organization shall be by

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

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

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

22  mailed by the eligible nonprofit scholarship-funding

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

24  and the parent shall restrictively endorse the warrant or

25  check to the nonpublic school. An eligible nonprofit

26  scholarship-funding organization shall ensure that, upon

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

28  the warrant or check is made restrictively endorses the

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

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

31  

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

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

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

 4  nonpublic school, the parent must:

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

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

 7  district within 15 days after receiving acceptance;

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

 9  parental-involvement requirements, unless excused by the

10  school for illness or other good cause; and

11         (c)  Ensure that the student receiving a scholarship

12  under this section takes all statewide assessments required

13  pursuant to s. 1008.22.

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

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

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

17  nonpublic school, the student must remain in attendance

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

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

20  school's code of conduct.

21         (8)  DURATION OF SCHOLARSHIP.--

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

23  a scholarship granted under this section shall remain in force

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

25  student was originally assigned, or:

26         1.  If the student is in grades kindergarten through

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

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

29  an accredited school that has a performance grade category

30  designation of "C" or better;

31  

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

 2  until the student matriculates to high school and the public

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

 4  school that has a performance grade category designation of

 5  "C" or better.

 6  

 7  At any time upon reasonable notice to the Department of

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

 9  remove the student from the nonpublic school and place the

10  student in a public school, as provided in subparagraph

11  (3)(a)2.

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

13  scholarship under this section may continue to report the

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

15  the Florida Education Finance Program for the remainder of the

16  period during which the student would have attended that

17  school.  The district shall provide the funding associated

18  with that student directly to the respective public school.

19  The school may not report the student under this paragraph

20  beyond the period after which the student would have

21  matriculated to another school.

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

23  eligible nonpublic school must:

24         (a)  Demonstrate fiscal soundness by being in operation

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

26  a statement by a certified public accountant confirming that

27  the nonpublic school desiring to participate is insured and

28  the owner or owners have sufficient capital or credit to

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

30  students anticipated with expected revenues from tuition and

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

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

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

 3  filed with the department.

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

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

 6  eligible nonprofit scholarship funding organizations of its

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

 8  1 of the school year preceding the school year in which it

 9  intends to participate. The notice must specify the grade

10  levels and services that the private school has available for

11  qualified students under this section.

12         (c)  Comply with the antidiscrimination provisions of

13  42 U.S.C. s. 2000d.

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

15  codes.

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

17  regulation of nonpublic schools.

18         (f)  Accept scholarship students on an entirely random

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

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

21  preference in accepting applications to siblings of students

22  who have already been accepted on a random and

23  religious-neutral basis.

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

25  attendance criteria adopted by an appropriate nonpublic school

26  accrediting body and be academically accountable to the parent

27  for meeting the educational needs of the student. The

28  nonpublic school must furnish a school profile that includes

29  student performance.

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

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

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 1  teaching experience in public or private schools, or have

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

 3  provide instruction in subjects taught.

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

 5  schools.

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

 7  provided by the state nonprofit scholarship-funding

 8  organization for each student.

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

10  private school under this section to profess a specific

11  ideological belief, to pray, or to worship.

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

13  procedures prior to the expulsion of any student attending the

14  private school under this section.

15         (10)  ADMINISTRATION; RULES.--

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

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

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

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

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

21  amount of tax credit must submit an application for allocation

22  of tax credits or carryforward credits as required in

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

24  carryforward. The total amount of tax credits and carryforward

25  of tax credits granted each state fiscal year under this

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

27  transfer the credit authorized by this section to another

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

29  assigned, or transferred in the same transaction.

30  

31  

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

 2  section shall be submitted to the department on forms

 3  established by rule of the department.

 4         (c)  The department and the Department of Education

 5  shall develop a cooperative agreement to assist in the

 6  administration of this section. The Department of Education

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

 8  the department a list of eligible nonprofit

 9  scholarship-funding organizations that meet the requirements

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

11  nonprofit scholarship-funding organizations that meet the

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

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

14  eligibility of expenditures under this section as provided in

15  subsection (5).

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

17  120.536(1) and 120.54 as necessary to administer this section,

18  including rules establishing application forms and procedures

19  and governing the allocation of tax credits and carryforward

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

21  basis.

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

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

24  determine the eligibility of nonprofit scholarship-funding

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

26  the provisions of subsection (5) and identify qualified

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

28         (11)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--

29         (a)  All eligible contributions received by an eligible

30  nonprofit scholarship-funding organization shall be deposited

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

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 1         (b)  A nonprofit scholarship-funding organization that

 2  is authorized to receive donations and distribute scholarships

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

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

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

 6  distribution as scholarships in one program exceeds the demand

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

 8  organization may, with approval from the Department of

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

10  other program.

11         Section 4.  Paragraph (z) is added to subsection (8) of

12  section 213.053, Florida Statutes, to read:

13         213.053  Confidentiality and information sharing.--

14         (8)  Notwithstanding any other provision of this

15  section, the department may provide:

16         (z)  Information relative to s. 220.1875 to the

17  Department of Education in the conduct of its official

18  business.

19  

20  Disclosure of information under this subsection shall be

21  pursuant to a written agreement between the executive director

22  and the agency.  Such agencies, governmental or

23  nongovernmental, shall be bound by the same requirements of

24  confidentiality as the Department of Revenue.  Breach of

25  confidentiality is a misdemeanor of the first degree,

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

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

28  Statutes, is amended to read:

29         220.02  Legislative intent.--

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

31  against either the corporate income tax or the franchise tax

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

 2  631.828, those enumerated in s. 220.191, those enumerated in

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

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

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

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

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

 8  those enumerated in s. 220.187, those enumerated in s.

 9  220.1875, those enumerated in s. 220.192, and those enumerated

10  in s. 220.193.

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

12  220.13, Florida Statutes, is amended to read:

13         220.13  "Adjusted federal income" defined.--

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

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

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

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

18  adjusted as follows:

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

20  income:

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

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

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

24  state of the United States which is deductible from gross

25  income in the computation of taxable income for the taxable

26  year.

27         2.  The amount of interest which is excluded from

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

29  any other federal law, less the associated expenses disallowed

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

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

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 1  of any amounts included in alternative minimum taxable income,

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

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

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

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

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

 7  amount of the capital gain dividends attributable to the

 8  taxable year.

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

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

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

12  This subparagraph shall expire on the date specified in s.

13  290.016 for the expiration of the Florida Enterprise Zone Act.

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

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

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

17  This subparagraph shall expire on the date specified in s.

18  290.016 for the expiration of the Florida Enterprise Zone Act.

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

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

21  deductible from gross income in the computation of taxable

22  income for the taxable year.

23         7.  That portion of assessments to fund a guaranty

24  association incurred for the taxable year which is equal to

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

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

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

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

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

30  over the attributable expenses for the taxable year.

31  

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

 2  under s. 220.1895.

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

 4  designated project which is equal to the credit allowable for

 5  the taxable year under s. 220.185.

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

 7  under s. 220.187.

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

 9  under s. 220.1875.

10         13.12.  The amount taken as a credit for the taxable

11  year under s. 220.192.

12         14.13.  The amount taken as a credit for the taxable

13  year under s. 220.193.

14         Section 7.  Section 220.701, Florida Statutes, is

15  amended to read:

16         220.701  Collection authority.--The department shall

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

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

19  created under s. 220.7015. Unencumbered balances in this trust

20  fund shall be transferred monthly into the General Revenue

21  Fund of the state. However, such transfers shall be expended

22  exclusively on programs that are consistent with the uses

23  established for the Corporate Income Tax Trust Fund and that

24  are specifically identified in the General Appropriations Act.

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

26  Statutes, is amended to read:

27         1001.10  Commissioner of Education; general powers and

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

29  educational officer of the state and the sole custodian of the

30  K-20 data warehouse, and is responsible for giving full

31  assistance to the State Board of Education in enforcing

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 1  compliance with the mission and goals of the seamless K-20

 2  education system. To facilitate innovative practices and to

 3  allow local selection of educational methods, the State Board

 4  of Education may authorize the commissioner to waive, upon the

 5  request of a district school board, State Board of Education

 6  rules that relate to district school instruction and school

 7  operations, except those rules pertaining to civil rights, and

 8  student health, safety, and welfare. The Commissioner of

 9  Education is not authorized to grant waivers for any

10  provisions in rule pertaining to the allocation and

11  appropriation of state and local funds for public education;

12  the election, compensation, and organization of school board

13  members and superintendents; graduation and state

14  accountability standards; financial reporting requirements;

15  reporting of out-of-field teaching assignments under s.

16  1012.42; public meetings; public records; or due process

17  hearings governed by chapter 120. No later than January 1 of

18  each year, the commissioner shall report to the Legislature

19  and the State Board of Education all approved waiver requests

20  in the preceding year. Additionally, the commissioner has the

21  following general powers and duties:

22         (13)  To prepare and publish annually reports giving

23  statistics and other useful information pertaining to the tax

24  credit programs under ss. 220.187 and 220.1875 Opportunity

25  Scholarship Program.

26  

27  The commissioner's office shall operate all statewide

28  functions necessary to support the State Board of Education

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

30  and budget development, general administration, and assessment

31  and accountability.

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

 2  Statutes, is amended to read:

 3         1001.42  Powers and duties of district school

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

 5  exercise all powers and perform all duties listed below:

 6         (18)  CORPORATE INCOME TAX CREDIT SCHOLARSHIP PROGRAM;

 7  FAMILIES OF STUDENTS ATTENDING FAILING SCHOOLS OPPORTUNITY

 8  SCHOLARSHIPS.--Adopt policies allowing students attending

 9  schools that have been designated with a grade of "F," failing

10  to make adequate progress, for 2 school years in a 4-year

11  period to attend a higher performing public school in the same

12  district or an adjoining district or be granted a state

13  opportunity scholarship to transport the student to a public

14  school in an adjoining district or a scholarship to attend a

15  private school, in conformance with s. 220.1875 s. 1002.38 and

16  State Board of Education rule.

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

18  Statutes, is amended to read:

19         1002.20  K-12 student and parent rights.--Parents of

20  public school students must receive accurate and timely

21  information regarding their child's academic progress and must

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

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

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

25         (6)  EDUCATIONAL CHOICE.--

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

27  students may seek whatever public school choice options that

28  are applicable to their students and are available to students

29  in their school districts. These options may include

30  controlled open enrollment, lab schools, charter schools,

31  charter technical career centers, magnet schools, alternative

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 1  schools, special programs, advanced placement, dual

 2  enrollment, International Baccalaureate, International General

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

 4  International Certificate of Education, early admissions,

 5  credit by examination or demonstration of competency, the New

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

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

 8  also include the public school choice options of the corporate

 9  income tax credit scholarship programs Opportunity Scholarship

10  Program and the McKay Scholarships for Students with

11  Disabilities Program.

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

13  students may seek private school choice options under certain

14  programs.

15         1.  Under the corporate income tax credit scholarship

16  program for families of students attending schools failing to

17  make adequate progress Opportunity Scholarship Program, the

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

19  request and receive an opportunity scholarship from an

20  eligible nonprofit scholarship-funding organization for the

21  student to attend a private school in accordance with s.

22  220.1875 the provisions of s. 1002.38.

23         2.  Under the McKay Scholarships for Students with

24  Disabilities Program, the parent of a public school student

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

26  progress may request and receive a McKay Scholarship for the

27  student to attend a private school in accordance with the

28  provisions of s. 1002.39.

29         3.  Under the corporate income tax credit scholarship

30  program for families that have limited financial resources,

31  the parent of a student who qualifies for free or

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

 2  eligible nonprofit scholarship-funding organization for the

 3  student to attend a private school in accordance with the

 4  provisions of s. 220.187.

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

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

 7  accordance with the provisions of s. 1002.41.

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

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

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

11         Section 11.  Section 1002.38, Florida Statutes, is

12  repealed.

13         Section 12.  Section 1002.39, Florida Statutes, is

14  amended to read:

15         1002.39  The John M. McKay Scholarships for Students

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

17  that is separate and distinct from the Opportunity Scholarship

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

19  Students with Disabilities Program.

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

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

22  Students with Disabilities Program is established to provide

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

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

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

26  individual education plan has been written in accordance with

27  rules of the State Board of Education. Students with

28  disabilities include K-12 students who are documented as

29  having a mental handicap, including trainable, profound, or

30  educable; a speech or language impairment; a hearing

31  impairment, including deafness; a visual impairment, including

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 1  blindness; a dual sensory impairment; a physical impairment; a

 2  serious emotional disturbance, including an emotional

 3  handicap; a specific learning disability, including, but not

 4  limited to, dyslexia, dyscalculia, or developmental aphasia; a

 5  traumatic brain injury; or autism.

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

 7  of a public school student with a disability who is

 8  dissatisfied with the student's progress may request and

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

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

11  with this section if:

12         (a)  The student has spent the prior school year in

13  attendance at a Florida public school or the Florida School

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

15  means that the student was:

16         1.  Enrolled and reported by a school district for

17  funding during the preceding October and February Florida

18  Education Finance Program surveys in kindergarten through

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

20  Juvenile Justice commitment program if funded under the

21  Florida Education Finance Program;

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

23  Deaf and the Blind during the preceding October and February

24  student membership surveys in kindergarten through grade 12;

25  or

26         3.  Enrolled and reported by a school district for

27  funding during the preceding October and February Florida

28  Education Finance Program surveys, was at least 4 years old

29  when so enrolled and reported, and was eligible for services

30  under s. 1003.21(1)(e).

31  

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 1  However, a dependent child of a member of the United States

 2  Armed Forces who transfers to a school in this state from out

 3  of state or from a foreign country pursuant to a parent's

 4  permanent change of station orders is exempt from this

 5  paragraph but must meet all other eligibility requirements to

 6  participate in the program.

 7         (b)  The parent has obtained acceptance for admission

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

 9  program under subsection (8) and has requested from the

10  department a scholarship at least 60 days prior to the date of

11  the first scholarship payment. The request must be through a

12  communication directly to the department in a manner that

13  creates a written or electronic record of the request and the

14  date of receipt of the request. The Department of Education

15  must notify the district of the parent's intent upon receipt

16  of the parent's request.

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

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

19  she is:

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

21  providing educational services to youth in Department of

22  Juvenile Justice commitment programs;

23         (b)  Receiving a corporate income tax credit

24  scholarship under s. 220.187;

25         (c)  Receiving an educational scholarship pursuant to

26  this chapter;

27         (d)  Participating in a home education program as

28  defined in s. 1002.01(1);

29         (e)  Participating in a private tutoring program

30  pursuant to s. 1002.43;

31  

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 1         (f)  Participating in a virtual school, correspondence

 2  school, or distance learning program that receives state

 3  funding pursuant to the student's participation unless the

 4  participation is limited to no more than two courses per

 5  school year;

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

 7  the Blind; or

 8         (h)  Not having regular and direct contact with his or

 9  her private school teachers at the school's physical location.

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

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

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

13  student returns to a public school, graduates from high

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

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

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

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

18  school in accordance with this section.

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

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

21  private school to another participating private school.

22         (5)  SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.--

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

24  an individual education plan meeting, a school district shall

25  notify the parent of the student of all options available

26  pursuant to this section, inform the parent of the

27  availability of the department's telephone hotline and

28  Internet website for additional information on John M. McKay

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

30  to enroll the student in another public school within the

31  district.

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 1         2.  The parent is not required to accept the offer of

 2  enrolling in another public school in lieu of requesting a

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

 4  parent chooses the public school option, the student may

 5  continue attending a public school chosen by the parent until

 6  the student graduates from high school.

 7         3.  If the parent chooses a public school consistent

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

 9  the school district shall provide transportation to the public

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

11  provide transportation to a public school chosen that is not

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

13  s. 1002.31.

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

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

16  district must complete a matrix that assigns the student to

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

18  2000-2001 school year.

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

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

21  Scholarship, a school district must notify the student's

22  parent if the matrix of services has not been completed and

23  inform the parent that the district is required to complete

24  the matrix within 30 days after receiving notice of the

25  parent's request for a John M. McKay Scholarship. This notice

26  should include the required completion date for the matrix.

27         b.  The school district must complete the matrix of

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

29  McKay Scholarships for Students with Disabilities Program and

30  must notify the department of the student's matrix level

31  within 30 days after receiving notification of a request to

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 1  participate in the scholarship program. The school district

 2  must provide the student's parent with the student's matrix

 3  level within 10 school days after its completion.

 4         c.  The department shall notify the private school of

 5  the amount of the scholarship within 10 days after receiving

 6  the school district's notification of the student's matrix

 7  level.

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

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

10  or calculation error.

11         (c)  A school district shall provide notification to

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

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

14  Scholarship.

15         (d)  If the parent chooses the private school option

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

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

18  student must notify the department 60 days prior to the first

19  scholarship payment and before entering the private school in

20  order to be eligible for the scholarship when a space becomes

21  available for the student in the private school.

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

23  alternative, to enroll the student in and transport the

24  student to a public school in an adjacent school district

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

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

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

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

29  pursuant to the Florida Education Finance Program.

30         (f)  For a student who participates in the John M.

31  McKay Scholarships for Students with Disabilities Program

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 1  whose parent requests that the student take the statewide

 2  assessments under s. 1008.22, the district in which the

 3  student attends private school shall provide locations and

 4  times to take all statewide assessments.

 5         (6)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The

 6  department shall:

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

 8  parents and private schools with information on participation

 9  in the John M. McKay Scholarships for Students with

10  Disabilities Program.

11         (b)  Annually verify the eligibility of private schools

12  that meet the requirements of subsection (8).

13         (c)  Establish a process by which individuals may

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

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

16  participation. The department shall conduct an inquiry of any

17  written complaint of a violation of this section, or make a

18  referral to the appropriate agency for an investigation, if

19  the complaint is signed by the complainant and is legally

20  sufficient. A complaint is legally sufficient if it contains

21  ultimate facts that show that a violation of this section or

22  any rule adopted by the State Board of Education has occurred.

23  In order to determine legal sufficiency, the department may

24  require supporting information or documentation from the

25  complainant. A department inquiry is not subject to the

26  requirements of chapter 120.

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

28  statement by participating private schools certifying

29  compliance with state laws and shall retain such records.

30  

31  

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

 2  students with the public school enrollment lists prior to each

 3  scholarship payment to avoid duplication.

 4         (f)1.  Conduct random site visits to private schools

 5  participating in the John M. McKay Scholarships for Students

 6  with Disabilities Program. The purpose of the site visits is

 7  solely to verify the information reported by the schools

 8  concerning the enrollment and attendance of students, the

 9  credentials of teachers, background screening of teachers, and

10  teachers' fingerprinting results, which information is

11  required by rules of the State Board of Education, subsection

12  (8), and s. 1002.421. The Department of Education may not make

13  more than three random site visits each year and may not make

14  more than one random site visit each year to the same private

15  school.

16         2.  Annually, by December 15, report to the Governor,

17  the President of the Senate, and the Speaker of the House of

18  Representatives the Department of Education's actions with

19  respect to implementing accountability in the scholarship

20  program under this section and s. 1002.421, any substantiated

21  allegations or violations of law or rule by an eligible

22  private school under this program concerning the enrollment

23  and attendance of students, the credentials of teachers,

24  background screening of teachers, and teachers' fingerprinting

25  results and the corrective action taken by the Department of

26  Education.

27         (7)  COMMISSIONER OF EDUCATION AUTHORITY AND

28  OBLIGATIONS.--

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

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

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

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 1  to comply with the provisions of this section. However, in

 2  instances in which the noncompliance is correctable within a

 3  reasonable amount of time and in which the health, safety, or

 4  welfare of the students is not threatened, the commissioner

 5  may issue a notice of noncompliance which shall provide the

 6  private school with a timeframe within which to provide

 7  evidence of compliance prior to taking action to suspend or

 8  revoke the private school's participation in the scholarship

 9  program.

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

11  following:

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

13  revoke a private school's participation in the scholarship

14  program, the department shall notify the private school of

15  such proposed action in writing by certified mail and regular

16  mail to the private school's address of record with the

17  department. The notification shall include the reasons for the

18  proposed action and notice of the timelines and procedures set

19  forth in this paragraph.

20         2.  The private school that is adversely affected by

21  the proposed action shall have 15 days from receipt of the

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

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

24  120.57. If the private school is entitled to a hearing under

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

26  Division of Administrative Hearings.

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

28  paragraph, the director of the Division of Administrative

29  Hearings shall expedite the hearing and assign an

30  administrative law judge who shall commence a hearing within

31  30 days after the receipt of the formal written request by the

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 1  division and enter a recommended order within 30 days after

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

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

 4  days in which to submit written exceptions to the recommended

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

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

 7  this subparagraph may be waived upon stipulation by all

 8  parties.

 9         (c)  The commissioner may immediately suspend payment

10  of scholarship funds if it is determined that there is

11  probable cause to believe that there is:

12         1.  An imminent threat to the health, safety, or

13  welfare of the students; or

14         2.  Fraudulent activity on the part of the private

15  school. Notwithstanding s. 1002.22(3), in incidents of alleged

16  fraudulent activity pursuant to this section, the Department

17  of Education's Office of Inspector General is authorized to

18  release personally identifiable records or reports of students

19  to the following persons or organizations:

20         a.  A court of competent jurisdiction in compliance

21  with an order of that court or the attorney of record in

22  accordance with a lawfully issued subpoena, consistent with

23  the Family Educational Rights and Privacy Act, 20 U.S.C. s.

24  1232g.

25         b.  A person or entity authorized by a court of

26  competent jurisdiction in compliance with an order of that

27  court or the attorney of record pursuant to a lawfully issued

28  subpoena, consistent with the Family Educational Rights and

29  Privacy Act, 20 U.S.C. s. 1232g.

30         c.  Any person, entity, or authority issuing a subpoena

31  for law enforcement purposes when the court or other issuing

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 1  agency has ordered that the existence or the contents of the

 2  subpoena or the information furnished in response to the

 3  subpoena not be disclosed, consistent with the Family

 4  Educational Rights and Privacy Act, 20 U.S.C. s. 1232g, and 34

 5  C.F.R. s. 99.31.

 6  

 7  The commissioner's order suspending payment pursuant to this

 8  paragraph may be appealed pursuant to the same procedures and

 9  timelines as the notice of proposed action set forth in

10  paragraph (b).

11         (8)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--To be

12  eligible to participate in the John M. McKay Scholarships for

13  Students with Disabilities Program, a private school may be

14  sectarian or nonsectarian and must:

15         (a)  Comply with all requirements for private schools

16  participating in state school choice scholarship programs

17  pursuant to s. 1002.421.

18         (b)  Provide to the department all documentation

19  required for a student's participation, including the private

20  school's and student's fee schedules, at least 30 days before

21  the first quarterly scholarship payment is made for the

22  student.

23         (c)  Be academically accountable to the parent for

24  meeting the educational needs of the student by:

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

26  written explanation of the student's progress.

27         2.  Cooperating with the scholarship student whose

28  parent chooses to participate in the statewide assessments

29  pursuant to s. 1008.22.

30         (d)  Maintain in this state a physical location where a

31  scholarship student regularly attends classes.

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 1  

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

 3  this subsection shall constitute a basis for the ineligibility

 4  of the private school to participate in the scholarship

 5  program as determined by the department.

 6         (9)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM

 7  PARTICIPATION.--A parent who applies for a John M. McKay

 8  Scholarship is exercising his or her parental option to place

 9  his or her child in a private school.

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

11  apply for the admission of his or her child.

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

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

14  payment.

15         (c)  Any student participating in the John M. McKay

16  Scholarships for Students with Disabilities Program must

17  remain in attendance throughout the school year unless excused

18  by the school for illness or other good cause.

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

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

21  published policies.

22         (e)  If the parent requests that the student

23  participating in the John M. McKay Scholarships for Students

24  with Disabilities Program take all statewide assessments

25  required pursuant to s. 1008.22, the parent is responsible for

26  transporting the student to the assessment site designated by

27  the school district.

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

29  to whom the warrant is made must restrictively endorse the

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

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

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 1  individual associated with the participating private school as

 2  the parent's attorney in fact to endorse a scholarship

 3  warrant. A participant who fails to comply with this paragraph

 4  forfeits the scholarship.

 5         (10)  JOHN M. MCKAY SCHOLARSHIP FUNDING AND PAYMENT.--

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

 7  student with disabilities shall be a calculated amount

 8  equivalent to the base student allocation in the Florida

 9  Education Finance Program multiplied by the appropriate cost

10  factor for the educational program that would have been

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

12  she was assigned, multiplied by the district cost

13  differential.

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

15  for exceptional students shall be determined and added to the

16  calculated amount. The calculation shall be based on the

17  methodology and the data used to calculate the guaranteed

18  allocation for exceptional students for each district in

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

20  subparagraphs 3. and 4., the calculation shall be based on the

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

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

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

24  student allocation and the 2000-2001 district cost

25  differential for the sending district. Also, the calculated

26  amount shall include the per-student share of supplemental

27  academic instruction funds, instructional materials funds,

28  technology funds, and other categorical funds as provided for

29  such purposes in the General Appropriations Act.

30         3.  The calculated scholarship amount for a student who

31  is eligible under subparagraph (2)(a)2. shall be calculated as

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

 2  shall be based on the school district in which the parent

 3  resides at the time of the scholarship request.

 4         4.  Until the school district completes the matrix

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

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

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

 8  the school district completes the matrix, the amount of the

 9  payment shall be adjusted as needed.

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

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

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

13  assessment fee required by the participating private school

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

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

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

17  students with disabilities attending private schools on John

18  M. McKay Scholarships shall be reported separately from other

19  students reported for purposes of the Florida Education

20  Finance Program.

21         2.  For program participants who are eligible under

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

23  basis for the calculation of the scholarship amount as

24  provided in subparagraph (a)3. shall:

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

26  attending a private school under this program.

27         b.  Be held harmless for such students from the

28  weighted enrollment ceiling for group 2 programs in s.

29  1011.62(1)(d)3.a. during the first school year in which the

30  students are reported.

31  

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

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

 3  participants, the department shall transfer, from General

 4  Revenue funds only, the amount calculated under paragraph (b)

 5  from the school district's total funding entitlement under the

 6  Florida Education Finance Program and from authorized

 7  categorical accounts to a separate account for the scholarship

 8  program for quarterly disbursement to the parents of

 9  participating students. Funds may not be transferred from any

10  funding provided to the Florida School for the Deaf and the

11  Blind for program participants who are eligible under

12  subparagraph (2)(a)2. For a student exiting a Department of

13  Juvenile Justice commitment program who chooses to participate

14  in the scholarship program, the amount of the John M. McKay

15  Scholarship calculated pursuant to paragraph (b) shall be

16  transferred from the school district in which the student last

17  attended a public school prior to commitment to the Department

18  of Juvenile Justice. When a student enters the scholarship

19  program, the department must receive all documentation

20  required for the student's participation, including the

21  private school's and student's fee schedules, at least 30 days

22  before the first quarterly scholarship payment is made for the

23  student.

24         (e)  Upon notification by the department that it has

25  received the documentation required under paragraph (d), the

26  Chief Financial Officer shall make scholarship payments in

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

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

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

30  after department verification of admission acceptance, and

31  subsequent payments shall be made upon verification of

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 1  continued enrollment and attendance at the private school.

 2  Payment must be by individual warrant made payable to the

 3  student's parent and mailed by the department to the private

 4  school of the parent's choice, and the parent shall

 5  restrictively endorse the warrant to the private school for

 6  deposit into the account of the private school.

 7         (f)  Subsequent to each scholarship payment, the

 8  department shall request from the Department of Financial

 9  Services a sample of endorsed warrants to review and confirm

10  compliance with endorsement requirements.

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

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

13  Scholarship.

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

15  private schools within options available to Florida public

16  school students does not expand the regulatory authority of

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

18  additional regulation of private schools beyond those

19  reasonably necessary to enforce requirements expressly set

20  forth in this section.

21         (13)  RULES.--The State Board of Education shall adopt

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

23  section, including rules that school districts must use to

24  expedite the development of a matrix of services based on an

25  active individual education plan from another state or a

26  foreign country for a transferring student with a disability

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

28  Armed Forces. The rules must identify the appropriate school

29  district personnel who must complete the matrix of services.

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

31  disability is one who was previously enrolled as a student

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

 2  public or private school or agency program and who is

 3  transferring from out of state or from a foreign country

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

 5         Section 13.  This act shall take effect July 1, 2007.

 6  

 7            *****************************************

 8                          SENATE SUMMARY

 9    Abolishes the Opportunity Scholarship Program. Provides
      for creation of a program to enhance failing schools.
10    Provides for credits against the corporate tax for
      contributions to nonprofit scholarship-funding
11    organizations. (See bill for details.)

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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