Senate Bill sb2380c1

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    Florida Senate - 2007                           CS for SB 2380

    By the Committee on Education Pre-K - 12; and Senator Webster





    581-2374-07

  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; requiring

27         nonprofit scholarship-funding organizations to

28         meet certain requirements; authorizing students

29         at such schools to attend a high-performing

30         school in the same district; providing a credit

31         against the corporate income tax for

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    Florida Senate - 2007                           CS for SB 2380
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 1         contributions to nonprofit scholarship-funding

 2         organizations; providing limitations; providing

 3         for use of such contributions for scholarships

 4         for students attending certain failing schools

 5         to attend nonpublic schools or public schools

 6         in adjacent districts; providing requirements

 7         and limitations with respect to scholarships;

 8         providing for payment; establishing eligibility

 9         for nonpublic school participation and grounds

10         for ineligibility to participate in the

11         program; providing for administration by the

12         Department of Revenue and the Department of

13         Education; providing for rules; providing

14         requirements for deposit of eligible

15         contributions; amending s. 213.053, F.S.;

16         conforming provisions to the creation of the

17         tax credit scholarship program for families of

18         students in failing schools; authorizing the

19         Department of Revenue to share certain tax

20         information with the Department of Education;

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

22         intent with respect to the order in which

23         corporate income tax credits are applied to

24         conform to the creation of the tax credit

25         scholarship program for families of students in

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

27         redefining the term "adjusted federal income"

28         to account for the creation of the tax credit

29         scholarship program for families of students in

30         failing schools; providing for the credit to be

31         an addition to taxable income; amending s.

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    Florida Senate - 2007                           CS for SB 2380
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 1         220.701, F.S.; directing the Department of

 2         Revenue to deposit moneys received through the

 3         corporate income tax into the Corporate Income

 4         Tax Trust Fund rather than the General Revenue

 5         Fund; providing for unencumbered trust fund

 6         balances to be transferred into the General

 7         Revenue Fund; prescribing how transferred funds

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

 9         conforming provisions to the repeal of the

10         Opportunity Scholarship Program; authorizing

11         the Commissioner of Education to prepare and

12         publish reports related to specified tax credit

13         programs; amending ss. 1001.42 and 1002.20,

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

15         the Opportunity Scholarship Program and the

16         creation of the tax credit program for families

17         of students attending schools failing to make

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

19         which authorizes the Opportunity Scholarship

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

21         to the repeal of the Opportunity Scholarship

22         Program; providing an effective date.

23  

24         WHEREAS, education is a fundamental value and a

25  paramount duty of the state, and

26         WHEREAS, the State Constitution requires the state to

27  provide for the free education of all children residing within

28  its borders, and

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

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

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

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

 2  constitutional requirement, and

 3         WHEREAS, the Florida Supreme Court invalidated the

 4  Opportunity Scholarship Program because it allowed state funds

 5  to be disbursed to private schools, and

 6         WHEREAS, the Legislature created the Opportunity

 7  Scholarship Program to ensure that all children have a chance

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

 9         WHEREAS, the state is committed to improving the

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

11  and

12         WHEREAS, there are some public schools that continue to

13  fail to make adequate progress based on the school performance

14  grading categories established by law, and

15         WHEREAS, respecting the constitutional mandate cited by

16  the Florida Supreme Court, the Legislature intends for the

17  state to develop and implement a comprehensive strategic

18  program to facilitate the improvement of schools that are

19  failing to make adequate progress, and

20         WHEREAS, facilitating the improvement in the

21  performance of these schools is a multiyear endeavor, and

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

23         WHEREAS, students assigned to schools that are failing

24  to make adequate progress should have the choice of attending

25  a higher-performing school while the state continues to

26  facilitate the improvement of these schools, and

27         WHEREAS, the Legislature intends to create a program to

28  provide an educational safety net to students assigned to

29  these schools, distinct from and without impeding the efforts

30  to help these schools improve, NOW, THEREFORE,

31  

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

 2  

 3         Section 1.  Section 1008.3455, Florida Statutes, is

 4  created to read:

 5         1008.3455  Improvement program for schools failing to

 6  make adequate progress.--

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

 8  develop and implement a comprehensive strategic program to

 9  facilitate the improvement of schools that are failing to make

10  adequate progress based on the school performance grading

11  categories established by law. The Legislature finds that

12  achieving meaningful and lasting progress in these schools

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

14  the Legislature that the program developed under this section

15  include a multiyear design and implementation schedule, with

16  measurable goals and objectives for these schools.

17         (2)  In coordination with the responsibilities

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

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

20  Speaker of the House of Representatives, no later than

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

22  practices targeted specifically toward schools in the "F"

23  grade category under s. 1008.34.

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

25  assessment of the extent to which new policies, or

26  enhancements to existing policies, in the following areas

27  would facilitate improvement at these schools:

28         1.  Capital improvements to school facilities;

29         2.  Salaries for teachers and staff;

30         3.  Incentives for outstanding faculty and staff to

31  transfer to these schools;

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 1         4.  Equipment and supplies;

 2         5.  Technology infrastructure, hardware, or software;

 3         6.  Incentives to encourage parental or other family

 4  participation; and

 5         7.  Mentoring and other community participation.

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

 7  priority and timeline for enacting, funding, and implementing

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

 9  shall identify those elements of the program which can be

10  accomplished within existing statutory authority and those

11  elements that will require new statutory authority.  The

12  program must include specific recommendations for action by

13  the Legislature.

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

15  the program required by this section, the commissioner shall

16  create an advisory committee comprised of at least two

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

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

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

20  any other individuals the commissioner deems appropriate.

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

22  commissioner shall consult with:

23         1.    The Office of Program Policy Analysis and

24  Government Accountability; and

25         2.  The district community assessment teams assigned

26  under s. 1008.345.

27         (4)  The program shall be developed in coordination

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

29  initiatives of the Department of Education or the State Board

30  of Education.

31  

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 1         (5)  The commissioner shall report annually to the

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

 3  House of Representatives on implementation of the program.

 4         Section 2.  Section 220.187, Florida Statutes, is

 5  amended to read:

 6         220.187  Credits for contributions to nonprofit

 7  scholarship-funding organizations; families that have limited

 8  financial resources.--

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

10         (a)  Encourage private, voluntary contributions to

11  nonprofit scholarship-funding organizations.

12         (b)  Expand educational opportunities for children of

13  families that have limited financial resources.

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

15  level of excellence in their education.

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

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

18         (b)  "Eligible contribution" means a monetary

19  contribution from a taxpayer, subject to the restrictions

20  provided in this section, to an eligible nonprofit

21  scholarship-funding organization. The taxpayer making the

22  contribution may not designate a specific child as the

23  beneficiary of the contribution.

24         (c)  "Eligible nonprofit scholarship-funding

25  organization" means a charitable organization that:

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

27  501(c)(3) of the Internal Revenue Code;

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

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

30  located in the state; and

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

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 1  

 2  An eligible nonprofit scholarship-funding organization that is

 3  authorized to provide scholarships under s. 220.1875 may,

 4  subject to approval by the Department of Education, be

 5  authorized to provide scholarships under this section.

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

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

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

 9  requirements in subsection (8).

10         (e)  "Owner or operator" includes:

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

12  eligible nonprofit scholarship-funding organization or a

13  person with equivalent decisionmaking authority over an

14  eligible nonprofit scholarship-funding organization.

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

16  an eligible private school or a person with equivalent

17  decisionmaking authority over an eligible private school.

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

19  Income Tax Credit Scholarship Program is established. A

20  student is eligible for a corporate income tax credit

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

22  school lunches under the National School Lunch Act and:

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

24  during the previous state fiscal year for purposes of state

25  per-student funding;

26         (b)  Received a scholarship from an eligible nonprofit

27  scholarship-funding organization or from the State of Florida

28  during the previous school year; or

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

30  

31  

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

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

 3  level does not exceed 200 percent of the federal poverty

 4  level.

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

 6  eligible for a scholarship while he or she is:

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

 8  providing educational services to youth in Department of

 9  Juvenile Justice commitment programs;

10         (b)  Receiving a scholarship from another eligible

11  nonprofit scholarship-funding organization under this section;

12         (c)  Receiving an educational scholarship pursuant to

13  chapter 1002;

14         (d)  Participating in a home education program as

15  defined in s. 1002.01(1);

16         (e)  Participating in a private tutoring program

17  pursuant to s. 1002.43;

18         (f)  Participating in a virtual school, correspondence

19  school, or distance learning program that receives state

20  funding pursuant to the student's participation unless the

21  participation is limited to no more than two courses per

22  school year; or

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

24  the Blind.

25         (5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

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

28  eligible contribution against any tax due for a taxable year

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

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

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

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

 2  reduced by the difference between the amount of federal

 3  corporate income tax taking into account the credit granted by

 4  this section and the amount of federal corporate income tax

 5  without application of the credit granted by this section.

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

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

 8  under this section is $88 million. At least 1 percent of the

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

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

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

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

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

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

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

19  under this section. The amount rescinded shall become

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

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

22  department if the taxpayer receives notice from the department

23  that the rescindment has been accepted by the department and

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

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

26  previous 3 tax years. Any amount rescinded under this

27  paragraph shall become available to an eligible taxpayer on a

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

29  applications received after the date the rescindment is

30  accepted by the department.

31  

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 1         (6)  OBLIGATIONS OF ELIGIBLE NONPROFIT

 2  SCHOLARSHIP-FUNDING ORGANIZATIONS.--An eligible nonprofit

 3  scholarship-funding organization:

 4         (a)  Must comply with the antidiscrimination provisions

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

 6         (b)  Must comply with the following background check

 7  requirements:

 8         1.  All owners and operators as defined in subparagraph

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

10  services, subject to level 2 background screening as provided

11  under chapter 435. The fingerprints for the background

12  screening must be electronically submitted to the Department

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

14  enforcement agency or by an employee of the eligible nonprofit

15  scholarship-funding organization or a private company who is

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

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

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

19  criminal history check shall be provided to the Department of

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

21  background screening may be borne by the eligible nonprofit

22  scholarship-funding organization or the owner or operator.

23         2.  Every 5 years following employment or engagement to

24  provide services or association with an eligible nonprofit

25  scholarship-funding organization, each owner or operator must

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

27  which time the nonprofit scholarship-funding organization

28  shall request the Department of Law Enforcement to forward the

29  fingerprints to the Federal Bureau of Investigation for level

30  2 screening. If the fingerprints of an owner or operator are

31  not retained by the Department of Law Enforcement under

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 1  subparagraph 3., the owner or operator must electronically

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

 3  Enforcement. Upon submission of fingerprints for this purpose,

 4  the eligible nonprofit scholarship-funding organization shall

 5  request that the Department of Law Enforcement forward the

 6  fingerprints to the Federal Bureau of Investigation for level

 7  2 screening, and the fingerprints shall be retained by the

 8  Department of Law Enforcement under subparagraph 3.

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

10  to the Department of Law Enforcement as required by this

11  paragraph must be retained by the Department of Law

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

13  statewide automated fingerprint identification system

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

15  thereafter be available for all purposes and uses authorized

16  for arrest fingerprint cards entered in the statewide

17  automated fingerprint identification system pursuant to s.

18  943.051.

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

20  Enforcement shall search all arrest fingerprint cards received

21  under s. 943.051 against the fingerprints retained in the

22  statewide automated fingerprint identification system under

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

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

25  Department of Education. The Department of Education shall

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

27  the Department of Law Enforcement and by informing the

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

29  engagement, or association status of the owners or operators

30  whose fingerprints are retained under subparagraph 3. The

31  Department of Law Enforcement shall adopt a rule setting the

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

 2  Education for performing these services and establishing the

 3  procedures for the retention of owner and operator

 4  fingerprints and the dissemination of search results. The fee

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

 6  scholarship-funding organization.

 7         5.  A nonprofit scholarship-funding organization whose

 8  owner or operator fails the level 2 background screening shall

 9  not be eligible to provide scholarships under this section.

10         6.  A nonprofit scholarship-funding organization whose

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

12  bankruptcy or corporate bankruptcy in a corporation of which

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

14  provide scholarships under this section.

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

16  operates an eligible private school that is participating in

17  the scholarship program.

18         (d)  Must provide scholarships, from eligible

19  contributions, to eligible students for:

20         1.  Tuition or textbook expenses for, or transportation

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

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

23         2.  Transportation expenses to a Florida public school

24  that is located outside the district in which the student

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

26         (e)  Must give priority to eligible students who

27  received a scholarship from an eligible nonprofit

28  scholarship-funding organization or from the State of Florida

29  during the previous school year or who received an opportunity

30  scholarship under former s. 1002.38 during the final quarter

31  of the 2006-2007 school year.

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

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

 3  qualifies for priority pursuant to paragraph (e).

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

 5  at a particular private school or provide scholarships to a

 6  child of an owner or operator.

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

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

 9  scholarship during a school year to any other eligible private

10  school of the parent's choice.

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

12  the contribution was received, 100 percent of the eligible

13  contribution to provide annual or partial-year scholarships;

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

15  carried forward for expenditure in the following state fiscal

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

17  a scholarship for an academic year, document each scholarship

18  student's eligibility for that academic year. A

19  scholarship-funding organization may not grant multiyear

20  scholarships in one approval process. No portion of eligible

21  contributions may be used for administrative expenses. All

22  interest accrued from contributions must be used for

23  scholarships.

24         (j)  Must maintain separate accounts for scholarship

25  funds and operating funds.

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

27  Education, may transfer funds to another eligible nonprofit

28  scholarship-funding organization if additional funds are

29  required to meet scholarship demand at the receiving nonprofit

30  scholarship-funding organization. A transfer shall be limited

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

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 1  contributions received by the nonprofit scholarship-funding

 2  organization making the transfer. All transferred funds must

 3  be deposited by the receiving nonprofit scholarship-funding

 4  organization into its scholarship accounts. All transferred

 5  amounts received by any nonprofit scholarship-funding

 6  organization must be separately disclosed in the annual

 7  financial and compliance audit required in this section.

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

 9  Department of Education an annual financial and compliance

10  audit of its accounts and records conducted by an independent

11  certified public accountant and in accordance with rules

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

13  compliance with generally accepted auditing standards and must

14  include a report on financial statements presented in

15  accordance with generally accepted accounting principles set

16  forth by the American Institute of Certified Public

17  Accountants for not-for-profit organizations and a

18  determination of compliance with the statutory eligibility and

19  expenditure requirements set forth in this section. Audits

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

21  Education within 180 days after completion of the eligible

22  nonprofit scholarship-funding organization's fiscal year.

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

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

25  addition, an eligible nonprofit scholarship-funding

26  organization must submit in a timely manner any information

27  requested by the Department of Education relating to the

28  scholarship program.

29  

30  Any and all information and documentation provided to the

31  Department of Education and the Auditor General relating to

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 1  the identity of a taxpayer that provides an eligible

 2  contribution under this section shall remain confidential at

 3  all times in accordance with s. 213.053.

 4         (7)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM

 5  PARTICIPATION.--

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

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

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

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

10  eligible private school.

11         (c)  Any student participating in the scholarship

12  program must remain in attendance throughout the school year

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

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

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

16  published policies.

17         (e)  The parent shall ensure that the student

18  participating in the scholarship program takes the

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

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

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

22  requests that the student participating in the scholarship

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

24  parent is responsible for transporting the student to the

25  assessment site designated by the school district.

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

27  eligible nonprofit scholarship-funding organization, the

28  parent to whom the warrant is made must restrictively endorse

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

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

31  or individual associated with the participating private school

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

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

 3  forfeits the scholarship.

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

 5  eligible private school may be sectarian or nonsectarian and

 6  must:

 7         (a)  Comply with all requirements for private schools

 8  participating in state school choice scholarship programs

 9  pursuant to s. 1002.421.

10         (b)  Provide to the eligible nonprofit

11  scholarship-funding organization, upon request, all

12  documentation required for the student's participation,

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

14         (c)  Be academically accountable to the parent for

15  meeting the educational needs of the student by:

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

17  written explanation of the student's progress.

18         2.  Annually administering or making provision for

19  students participating in the scholarship program to take one

20  of the nationally norm-referenced tests identified by the

21  Department of Education. Students with disabilities for whom

22  standardized testing is not appropriate are exempt from this

23  requirement. A participating private school must report a

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

25  organization selected by the Department of Education as

26  described in paragraph (9)(j).

27         3.  Cooperating with the scholarship student whose

28  parent chooses to participate in the statewide assessments

29  pursuant to s. 1008.32.

30  

31  

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

 2  and direct contact with each student receiving a scholarship

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

 4  

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

 6  this subsection shall constitute a basis for the ineligibility

 7  of the private school to participate in the scholarship

 8  program as determined by the Department of Education.

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

10  Department of Education shall:

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

12  list of eligible nonprofit scholarship-funding organizations

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

14         (b)  Annually verify the eligibility of nonprofit

15  scholarship-funding organizations that meet the requirements

16  of paragraph (2)(c).

17         (c)  Annually verify the eligibility of private schools

18  that meet the requirements of subsection (8).

19         (d)  Annually verify the eligibility of expenditures as

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

21  paragraph (6)(l).

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

23  parents and private schools with information on participation

24  in the scholarship program.

25         (f)  Establish a process by which individuals may

26  notify the Department of Education of any violation by a

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

28  relating to program participation. The Department of Education

29  shall conduct an inquiry of any written complaint of a

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

31  appropriate agency for an investigation, if the complaint is

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 1  signed by the complainant and is legally sufficient. A

 2  complaint is legally sufficient if it contains ultimate facts

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

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

 5  determine legal sufficiency, the Department of Education may

 6  require supporting information or documentation from the

 7  complainant. A department inquiry is not subject to the

 8  requirements of chapter 120.

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

10  statement by participating private schools certifying

11  compliance with state laws and shall retain such records.

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

13  students with the public school enrollment lists to avoid

14  duplication.

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

16  identify and select the nationally norm-referenced tests that

17  are comparable to the norm-referenced provisions of the

18  Florida Comprehensive Assessment Test (FCAT) provided that the

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

20  of Education may approve the use of an additional assessment

21  by the school if the assessment meets industry standards of

22  quality and comparability.

23         (j)  Select an independent research organization, which

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

25  participating private schools must report the scores of

26  participating students on the nationally norm-referenced tests

27  administered by the private school. The independent research

28  organization must annually report to the Department of

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

30  students. The independent research organization must analyze

31  and report student performance data in a manner that protects

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

 2  1232g, the Family Educational Rights and Privacy Act, and must

 3  not disaggregate data to a level that will disclose the

 4  academic level of individual students or of individual

 5  schools. To the extent possible, the independent research

 6  organization must accumulate historical performance data on

 7  students from the Department of Education and private schools

 8  to describe baseline performance and to conduct longitudinal

 9  studies. To minimize costs and reduce time required for

10  third-party analysis and evaluation, the Department of

11  Education shall conduct analyses of matched students from

12  public school assessment data and calculate control group

13  learning gains using an agreed-upon methodology outlined in

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

15  student data must be in accordance with requirements of 20

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

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

18  evaluation. All parties must preserve the confidentiality of

19  such information as required by law.

20         (k)  Notify an eligible nonprofit scholarship-funding

21  organization of any of the organization's identified students

22  who are receiving educational scholarships pursuant to chapter

23  1002.

24         (l)  Notify an eligible nonprofit scholarship-funding

25  organization of any of the organization's identified students

26  who are receiving corporate income tax credit scholarships

27  from other eligible nonprofit scholarship-funding

28  organizations.

29         (m)  Require quarterly reports by an eligible nonprofit

30  scholarship-funding organization regarding the number of

31  students participating in the scholarship program, the private

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 1  schools at which the students are enrolled, and other

 2  information deemed necessary by the Department of Education.

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

 4  participating in the Corporate Tax Credit Scholarship Program.

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

 6  information reported by the schools concerning the enrollment

 7  and attendance of students, the credentials of teachers,

 8  background screening of teachers, and teachers' fingerprinting

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

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

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

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

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

14  Representatives the Department of Education's actions with

15  respect to implementing accountability in the scholarship

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

17  allegations or violations of law or rule by an eligible

18  private school under this program concerning the enrollment

19  and attendance of students, the credentials of teachers,

20  background screening of teachers, and teachers' fingerprinting

21  results and the corrective action taken by the Department of

22  Education.

23         (10)  COMMISSIONER OF EDUCATION AUTHORITY AND

24  OBLIGATIONS.--

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

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

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

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

29  instances in which the noncompliance is correctable within a

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

31  welfare of the students is not threatened, the commissioner

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 1  may issue a notice of noncompliance that shall provide the

 2  private school with a timeframe within which to provide

 3  evidence of compliance prior to taking action to suspend or

 4  revoke the private school's participation in the scholarship

 5  program.

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

 7  following:

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

 9  revoke a private school's participation in the scholarship

10  program, the Department of Education shall notify the private

11  school of such proposed action in writing by certified mail

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

13  with the Department of Education. The notification shall

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

15  timelines and procedures set forth in this paragraph.

16         2.  The private school that is adversely affected by

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

18  notice of proposed action to file with the Department of

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

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

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

22  shall forward the request to the Division of Administrative

23  Hearings.

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

25  paragraph, the director of the Division of Administrative

26  Hearings shall expedite the hearing and assign an

27  administrative law judge who shall commence a hearing within

28  30 days after the receipt of the formal written request by the

29  division and enter a recommended order within 30 days after

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

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

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 1  days in which to submit written exceptions to the recommended

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

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

 4  this subparagraph may be waived upon stipulation by all

 5  parties.

 6         (c)  The commissioner may immediately suspend payment

 7  of scholarship funds if it is determined that there is

 8  probable cause to believe that there is:

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

10  welfare of the students; or

11         2.  Fraudulent activity on the part of the private

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

13  fraudulent activity pursuant to this section, the Department

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

15  release personally identifiable records or reports of students

16  to the following persons or organizations:

17         a.  A court of competent jurisdiction in compliance

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

19  accordance with a lawfully issued subpoena, consistent with

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

21  1232g.

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

23  competent jurisdiction in compliance with an order of that

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

25  subpoena, consistent with the Family Educational Rights and

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

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

28  for law enforcement purposes when the court or other issuing

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

30  subpoena or the information furnished in response to the

31  subpoena not be disclosed, consistent with the Family

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

 2  C.F.R. s. 99.31.

 3  

 4  The commissioner's order suspending payment pursuant to this

 5  paragraph may be appealed pursuant to the same procedures and

 6  timelines as the notice of proposed action set forth in

 7  paragraph (b).

 8         (11)  SCHOLARSHIP AMOUNT AND PAYMENT.--

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

10  student for any single school year by an eligible nonprofit

11  scholarship-funding organization from eligible contributions

12  shall not exceed the following annual limits:

13         1.  Three thousand seven hundred fifty dollars for a

14  scholarship awarded to a student enrolled in an eligible

15  private school.

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

17  student enrolled in a Florida public school that is located

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

19  school as defined in s. 1002.32.

20         (b)  Payment of the scholarship by the eligible

21  nonprofit scholarship-funding organization shall be by

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

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

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

25  nonprofit scholarship-funding organization to the private

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

27  restrictively endorse the warrant to the private school. An

28  eligible nonprofit scholarship-funding organization shall

29  ensure that the parent to whom the warrant is made

30  restrictively endorsed the warrant to the private school for

31  deposit into the account of the private school.

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 1         (c)  An eligible nonprofit scholarship-funding

 2  organization shall obtain verification from the private school

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

 4  each scholarship payment.

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

 6  eligible nonprofit scholarship-funding organization no less

 7  frequently than on a quarterly basis.

 8         (12)  ADMINISTRATION; RULES.--

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

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

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

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

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

14  amount of tax credit must submit an application for allocation

15  of tax credits or carryforward credits as required in

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

17  carryforward. This carryforward applies to all approved

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

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

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

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

22  transaction.

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

24  section shall be submitted to the department on forms

25  established by rule of the department.

26         (c)  The department and the Department of Education

27  shall develop a cooperative agreement to assist in the

28  administration of this section.

29         (d)  The department shall adopt rules necessary to

30  administer this section, including rules establishing

31  application forms and procedures and governing the allocation

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 1  of tax credits and carryforward credits under this section on

 2  a first-come, first-served basis.

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

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

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

 6  Education and the Commissioner of Education.

 7         (13)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--

 8         (a)  All eligible contributions received by an eligible

 9  nonprofit scholarship-funding organization shall be deposited

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

11         (b)  A nonprofit scholarship-funding organization that

12  is authorized to receive donations and distribute scholarships

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

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

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

16  distribution as scholarships in one program exceeds the demand

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

18  organization may, with approval from the Department of

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

20  other program.

21         Section 3.  Section 220.1875, Florida Statutes, is

22  created to read:

23         220.1875  Credits for contributions to nonprofit

24  scholarship-funding organizations; families of students

25  attending schools failing to make adequate progress.--

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

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

28  multiyear, comprehensive strategic program to facilitate the

29  improvement of schools that are failing to make adequate

30  progress based on school performance grading categories,

31  students attending failing schools are not denied the

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 1  opportunity to gain the knowledge and skills necessary for

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

 3  work.

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

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

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

 7  paramount duty of the state.

 8         (c)  Complement the constitutional requirement to

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

10  system of free public schools by providing educational

11  opportunities to students attending failing public schools

12  without impeding the ability of those schools to improve.

13         (d)  Encourage private, voluntary contributions to

14  nonprofit scholarship-funding organizations.

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

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

17         (b)  "Eligible contribution" means a monetary

18  contribution from a taxpayer, subject to the restrictions

19  provided in this section, to an eligible nonprofit

20  scholarship-funding organization. The taxpayer making the

21  contribution may not designate a specific child as the

22  beneficiary of the contribution. The taxpayer may not

23  contribute more than $5 million to any single eligible

24  nonprofit scholarship-funding organization.

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

26  school located in Florida which offers an education to

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

28  subsection (9).

29         (d)  "Eligible nonprofit scholarship-funding

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

31  220.187(2)(c) which is exempt from federal income tax pursuant

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

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

 3  scholarship-funding organization that is authorized to provide

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

 5  Department of Education, be authorized to provide scholarships

 6  under this section.

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

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

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

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

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

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

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

14         2.  Has been in attendance elsewhere in the public

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

16  next school year; or

17         3.  Is entering kindergarten or first grade and has

18  been notified that the student has been assigned to such

19  school for the next school year.

20         (f)  "Nonqualified student" means a student who is not

21  eligible for a scholarship while he or she is:

22         1.  Enrolled in a school operating for the purpose of

23  providing educational services to youth in Department of

24  Juvenile Justice commitment programs;

25         2.  Receiving a scholarship from another eligible

26  nonprofit scholarship-funding organization;

27         3.  Receiving an educational scholarship pursuant to

28  chapter 1002;

29         4.  Participating in a home education program as

30  defined in s. 1002.01(1);

31  

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 1         5.  Participating in a private tutoring program

 2  pursuant to s. 1002.43;

 3         6.  Participating in a virtual school, correspondence

 4  school, or distance learning program that receives state

 5  funding pursuant to the student's participation unless the

 6  participation is limited to no more than two courses per

 7  school year; or

 8         7.  Enrolled in the Florida School for the Deaf and the

 9  Blind.

10         (3)  SCHOOL DISTRICT OBLIGATIONS.--

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

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

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

14  period:

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

16  such designation is made of all options available pursuant to

17  this section;

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

19  enroll the student in another public school within the

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

21  1008.34 as a school performing higher than the school in which

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

23  been assigned, but not less than performance grade category

24  "C"; and

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

26  eligibility to receive a scholarship under this section to

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

28  public school outside the district which has been designated

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

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

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

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

 2  nonpublic school.

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

 4  available space in an adjacent school district shall accept

 5  students qualified under this section and report the students

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

 7  Education Finance Program.

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

 9  attending nonpublic schools under this section, the school

10  district shall provide locations and times to take all

11  statewide assessments required pursuant to s. 1008.22.

12         (d)  Students with disabilities who are eligible to

13  receive services from the school district under federal or

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

15  remain eligible to receive services from the school district

16  as provided by federal or state law.

17         (4)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

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

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

20  eligible contribution against any tax due for a taxable year

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

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

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

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

25  statewide amount authorized for the tax credit shall be

26  reserved for taxpayers who meet the definition of a small

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

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

29  difference between the amount of federal corporate income tax,

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

31  

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 1  the amount of federal corporate income tax without application

 2  of the credit granted by this section.

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

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

 5  under this section is $5 million.

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

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

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

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

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

11         (5)  OBLIGATIONS OF ELIGIBLE NONPROFIT

12  SCHOLARSHIP-FUNDING ORGANIZATIONS.--

13         (a)  An eligible nonprofit scholarship-funding

14  organization shall provide scholarships, from eligible

15  contributions, to qualified students for:

16         1.  Tuition and fees for a qualified student enrolled

17  in an eligible nonpublic school.

18         2.  Transportation expenses to a Florida public school

19  that is located outside the district in which the qualified

20  student resides.

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

22  nonprofit scholarship-funding organization shall give priority

23  to qualified students who received a scholarship to attend an

24  eligible nonpublic school during the previous school year.

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

26  qualified student for any single school year by all eligible

27  nonprofit scholarship-funding organizations from eligible

28  contributions may not exceed the following annual limits:

29         1.  For qualified students who choose to attend an

30  eligible nonpublic school, the lesser of:

31  

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

 2  eligible nonpublic school; or

 3         b.  A calculated amount equivalent to the base student

 4  allocation in the Florida Education Finance Program multiplied

 5  by the appropriate cost factor for the educational program

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

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

 8  cost differential. In addition, the calculated amount shall

 9  include the per-student share of instructional materials

10  funds, technology funds, and other categorical funds.

11         2.  For qualified students who choose to attend a

12  higher-performing public school that is located outside the

13  district in which the student resides, $500.

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

15  be accepted by an eligible nonprofit scholarship-funding

16  organization is limited to the amount needed to provide

17  scholarships for qualified students which the organization has

18  identified and for which vacancies in eligible nonpublic

19  schools have been identified.

20         (e)  An eligible nonprofit scholarship-funding

21  organization that receives an eligible contribution must spend

22  100 percent of the eligible contribution to provide

23  scholarships in the same state fiscal year in which the

24  contribution was received. No portion of eligible

25  contributions may be used for administrative expenses. All

26  interest accrued from contributions must be used for

27  scholarships.

28         (f)  An eligible nonprofit scholarship-funding

29  organization that receives eligible contributions must provide

30  to the Auditor General an annual financial and compliance

31  audit of its accounts and records conducted by an independent

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 1  certified public accountant and in accordance with rules

 2  adopted by the Auditor General.

 3         (g)  Payment of the scholarship by the eligible

 4  nonprofit scholarship-funding organization shall be by

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

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

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

 8  mailed by the eligible nonprofit scholarship-funding

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

10  and the parent shall restrictively endorse the warrant or

11  check to the nonpublic school. An eligible nonprofit

12  scholarship-funding organization shall ensure that, upon

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

14  the warrant or check is made restrictively endorses the

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

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

17         (h)  An eligible nonprofit scholarship-funding

18  organization must comply with the following background check

19  requirements:

20         1.  All owners and operators of an eligible nonprofit

21  scholarship-funding organization are, upon employment or

22  engagement to provide services, subject to level 2 background

23  screening as provided under chapter 435. The fingerprints for

24  the background screening must be electronically submitted to

25  the Department of Law Enforcement and may be taken by an

26  authorized law enforcement agency or by an employee of the

27  eligible nonprofit scholarship-funding organization or a

28  private company who is trained to take fingerprints. However,

29  the complete set of fingerprints of an owner or operator may

30  not be taken by  the owner or operator. The results of the

31  state and national criminal history check shall be provided to

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 1  the Department of Education for screening under chapter 435.

 2  The cost of the background screening may be borne by the

 3  eligible nonprofit scholarship-funding organization or the

 4  owner or operator.

 5         2.  Every 5 years following employment or engagement to

 6  provide services to or association with an eligible nonprofit

 7  scholarship-funding organization, each owner or operator must

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

 9  which time the nonprofit scholarship-funding organization

10  shall request the Department of Law Enforcement to forward the

11  fingerprints to the Federal Bureau of Investigation for level

12  2 screening. If the fingerprints of an owner or operator are

13  not retained by the Department of Law Enforcement under

14  subparagraph 3., the owner or operator must electronically

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

16  Enforcement. Upon submission of fingerprints for this purpose,

17  the eligible nonprofit scholarship-funding organization shall

18  request that the Department of Law Enforcement forward the

19  fingerprints to the Federal Bureau of Investigation for level

20  2 screening, and the fingerprints shall be retained by the

21  Department of Law Enforcement under subparagraph 3.

22         3.  Beginning July 1, 2008, all fingerprints submitted

23  to the Department of Law Enforcement as required by this

24  paragraph must be retained by the Department of Law

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

26  statewide automated fingerprint identification system

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

28  thereafter be available for all purposes and uses authorized

29  for arrest fingerprint cards entered in the statewide

30  automated fingerprint identification system pursuant to

31  s.943.051.

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 1         4.  Beginning July 1, 2008, the Department of Law

 2  Enforcement shall search all arrest fingerprint cards received

 3  under s. 943.051 against the fingerprints retained in the

 4  statewide automated fingerprint identification system under

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

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

 7  Department of Education. The Department of Education shall

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

 9  the Department of Law Enforcement and by informing the

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

11  engagement, or association status of the owners or operators

12  whose fingerprints are retained under subparagraph 3. The

13  Department of Law Enforcement shall adopt a rule setting the

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

15  Education for performing these services and establishing the

16  procedures for the retention of owner and operator

17  fingerprints and the dissemination of search results. The fee

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

19  scholarship-funding organization.

20         5.  A nonprofit scholarship-funding organization whose

21  owner or operator fails the level 2 background screening is

22  not eligible to provide scholarships under this section.

23         6.  A nonprofit scholarship-funding organization whose

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

25  bankruptcy or corporate bankruptcy in a corporation of which

26  he or she owned more than 20 percent is not eligible to

27  provide scholarships under this section.

28         (i)  An eligible nonprofit scholarship-funding

29  organization must not have an owner or operator who owns or

30  operates an eligible private school that is participating in

31  the scholarship program.

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 1         (j)  An eligible nonprofit scholarship-funding

 2  organization may not restrict or reserve scholarships for use

 3  at a particular private school or provide scholarships to a

 4  child of an owner or operator.

 5         (k)  An eligible nonprofit scholarship-funding

 6  organization must:

 7         1.  Comply with the antidiscrimination provisions of 42

 8  U.S.C. s. 2000d.

 9         2.  Maintain separate accounts for scholarship funds

10  and operating funds.

11         3.  Provide to the Auditor General and the Department

12  of Education an annual financial and compliance audit of its

13  accounts and records conducted by an independent certified

14  public accountant and in accordance with rules adopted by the

15  Auditor General. The audit must be conducted in compliance

16  with generally accepted auditing standards and must include a

17  report of financial statements presented in accordance with

18  generally accepted accounting principles set forth by the

19  American Institute of Certified Public Accountants for

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

21  with the statutory eligibility and expenditure requirements

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

23  Auditor General and the Department of Education within 180

24  days after completion of the eligible nonprofit

25  scholarship-funding organization's fiscal year.

26         4.  Prepare and submit quarterly reports to the

27  Department of Education pursuant to this section. In addition,

28  an eligible nonprofit scholarship-funding organization must

29  submit in a timely manner any information requested by the

30  Department of Education relating to the scholarship program.

31  

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 1  Any and all information and documentation provided to the

 2  Department of Education and the Auditor General relating to

 3  the identity of a taxpayer that provides an eligible

 4  contribution under this section shall remain confidential at

 5  all times in accordance with s. 213.053.

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

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

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

 9  nonpublic school, the parent must:

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

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

12  district within 15 days after receiving acceptance;

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

14  parental-involvement requirements, unless excused by the

15  school for illness or other good cause; and

16         (c)  Ensure that the student receiving a scholarship

17  under this section takes all statewide assessments required

18  pursuant to s. 1008.22.

19         (d)  Upon receipt of a scholarship warrant from the

20  eligible nonprofit scholarship-funding organization,

21  restrictively endorse the warrant to the private school for

22  deposit into the account of the private school. The parent may

23  not designate any entity or individual associated with the

24  participating private school as the parent's attorney in fact

25  to endorse a scholarship warrant. A participant who fails to

26  comply with this paragraph forfeits the scholarship.

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

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

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

30  nonpublic school, the student must remain in attendance

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

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

 2  school's code of conduct.

 3         (8)  DURATION OF SCHOLARSHIP.--

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

 5  a scholarship granted under this section shall remain in force

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

 7  student was originally assigned, or:

 8         1.  If the student is in grades kindergarten through

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

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

11  an accredited school that has a performance grade category

12  designation of "C" or better;

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

14  until the student matriculates to high school and the public

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

16  school that has a performance grade category designation of

17  "C" or better.

18  

19  At any time upon reasonable notice to the Department of

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

21  remove the student from the nonpublic school and place the

22  student in a public school, as provided in subparagraph

23  (3)(a)2.

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

25  scholarship under this section may continue to report the

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

27  the Florida Education Finance Program for the remainder of the

28  period during which the student would have attended that

29  school.  The district shall provide the funding associated

30  with that student directly to the respective public school.

31  The school may not report the student under this paragraph

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 1  beyond the period after which the student would have

 2  matriculated to another school.

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

 4  eligible nonpublic school must:

 5         (a)  Demonstrate fiscal soundness by being in operation

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

 7  a statement by a certified public accountant confirming that

 8  the nonpublic school desiring to participate is insured and

 9  the owner or owners have sufficient capital or credit to

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

11  students anticipated with expected revenues from tuition and

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

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

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

15  filed with the department.

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

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

18  eligible nonprofit scholarship funding organizations of its

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

20  1 of the school year preceding the school year in which it

21  intends to participate. The notice must specify the grade

22  levels and services that the private school has available for

23  qualified students under this section.

24         (c)  Comply with the antidiscrimination provisions of

25  42 U.S.C. s. 2000d.

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

27  codes.

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

29  regulation of nonpublic schools.

30         (f)  Accept scholarship students on an entirely random

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

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

 2  preference in accepting applications to siblings of students

 3  who have already been accepted on a random and

 4  religious-neutral basis.

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

 6  attendance criteria adopted by an appropriate nonpublic school

 7  accrediting body and be academically accountable to the parent

 8  for meeting the educational needs of the student. The

 9  nonpublic school must furnish a school profile that includes

10  student performance.

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

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

13  teaching experience in public or private schools, or have

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

15  provide instruction in subjects taught.

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

17  schools.

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

19  provided by the state nonprofit scholarship-funding

20  organization for each student.

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

22  private school under this section to profess a specific

23  ideological belief, to pray, or to worship.

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

25  procedures prior to the expulsion of any student attending the

26  private school under this section.

27  

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

29  this subsection constitutes a basis for the ineligibility of

30  the private school to participate in the scholarship program

31  as determined by the Department of Education.

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 1         (10)  ADMINISTRATION; RULES.--

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

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

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

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

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

 7  amount of tax credit must submit an application for allocation

 8  of tax credits or carryforward credits as required in

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

10  carryforward. The total amount of tax credits and carryforward

11  of tax credits granted each state fiscal year under this

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

13  transfer the credit authorized by this section to another

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

15  assigned, or transferred in the same transaction.

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

17  section shall be submitted to the department on forms

18  established by rule of the department.

19         (c)  The department and the Department of Education

20  shall develop a cooperative agreement to assist in the

21  administration of this section. The Department of Education

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

23  the department a list of eligible nonprofit

24  scholarship-funding organizations that meet the requirements

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

26  nonprofit scholarship-funding organizations that meet the

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

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

29  eligibility of expenditures under this section as provided in

30  subsection (5).

31  

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

 2  120.536(1) and 120.54 as necessary to administer this section,

 3  including rules establishing application forms and procedures

 4  and governing the allocation of tax credits and carryforward

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

 6  basis.

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

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

 9  determine the eligibility of nonprofit scholarship-funding

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

11  the provisions of subsection (5) and identify qualified

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

13         (11)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--

14         (a)  All eligible contributions received by an eligible

15  nonprofit scholarship-funding organization shall be deposited

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

17         (b)  A nonprofit scholarship-funding organization that

18  is authorized to receive donations and distribute scholarships

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

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

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

22  distribution as scholarships in one program exceeds the demand

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

24  organization may, with approval from the Department of

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

26  other program.

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

28  section 213.053, Florida Statutes, to read:

29         213.053  Confidentiality and information sharing.--

30         (8)  Notwithstanding any other provision of this

31  section, the department may provide:

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

 2  Department of Education in the conduct of its official

 3  business.

 4  

 5  Disclosure of information under this subsection shall be

 6  pursuant to a written agreement between the executive director

 7  and the agency.  Such agencies, governmental or

 8  nongovernmental, shall be bound by the same requirements of

 9  confidentiality as the Department of Revenue.  Breach of

10  confidentiality is a misdemeanor of the first degree,

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

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

13  Statutes, is amended to read:

14         220.02  Legislative intent.--

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

16  against either the corporate income tax or the franchise tax

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

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

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

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

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

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

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

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

25  220.1875, those enumerated in s. 220.192, and those enumerated

26  in s. 220.193.

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

28  220.13, Florida Statutes, is amended to read:

29         220.13  "Adjusted federal income" defined.--

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

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

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

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

 3  adjusted as follows:

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

 5  income:

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

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

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

 9  state of the United States which is deductible from gross

10  income in the computation of taxable income for the taxable

11  year.

12         2.  The amount of interest which is excluded from

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

14  any other federal law, less the associated expenses disallowed

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

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

17  of any amounts included in alternative minimum taxable income,

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

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

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

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

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

23  amount of the capital gain dividends attributable to the

24  taxable year.

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

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

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

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

29  290.016 for the expiration of the Florida Enterprise Zone Act.

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

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

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

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

 3  290.016 for the expiration of the Florida Enterprise Zone Act.

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

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

 6  deductible from gross income in the computation of taxable

 7  income for the taxable year.

 8         7.  That portion of assessments to fund a guaranty

 9  association incurred for the taxable year which is equal to

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

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

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

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

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

15  over the attributable expenses for the taxable year.

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

17  under s. 220.1895.

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

19  designated project which is equal to the credit allowable for

20  the taxable year under s. 220.185.

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

22  under s. 220.187.

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

24  under s. 220.1875.

25         13.12.  The amount taken as a credit for the taxable

26  year under s. 220.192.

27         14.13.  The amount taken as a credit for the taxable

28  year under s. 220.193.

29         Section 7.  Section 220.701, Florida Statutes, is

30  amended to read:

31  

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 1         220.701  Collection authority.--The department shall

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

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

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

 5  fund shall be transferred monthly into the General Revenue

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

 7  exclusively on programs that are consistent with the uses

 8  established for the Corporate Income Tax Trust Fund and that

 9  are specifically identified in the General Appropriations Act.

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

11  Statutes, is amended to read:

12         1001.10  Commissioner of Education; general powers and

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

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

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

16  assistance to the State Board of Education in enforcing

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

18  education system. To facilitate innovative practices and to

19  allow local selection of educational methods, the State Board

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

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

22  rules that relate to district school instruction and school

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

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

25  Education is not authorized to grant waivers for any

26  provisions in rule pertaining to the allocation and

27  appropriation of state and local funds for public education;

28  the election, compensation, and organization of school board

29  members and superintendents; graduation and state

30  accountability standards; financial reporting requirements;

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

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 1  1012.42; public meetings; public records; or due process

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

 3  each year, the commissioner shall report to the Legislature

 4  and the State Board of Education all approved waiver requests

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

 6  following general powers and duties:

 7         (13)  To prepare and publish annually reports giving

 8  statistics and other useful information pertaining to the tax

 9  credit programs under ss. 220.187 and 220.1875 Opportunity

10  Scholarship Program.

11  

12  The commissioner's office shall operate all statewide

13  functions necessary to support the State Board of Education

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

15  and budget development, general administration, and assessment

16  and accountability.

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

18  Statutes, is amended to read:

19         1001.42  Powers and duties of district school

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

21  exercise all powers and perform all duties listed below:

22         (18)  CORPORATE INCOME TAX CREDIT SCHOLARSHIP PROGRAM;

23  FAMILIES OF STUDENTS ATTENDING FAILING SCHOOLS OPPORTUNITY

24  SCHOLARSHIPS.--Adopt policies allowing students attending

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

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

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

28  district or an adjoining district or be granted a state

29  opportunity scholarship to transport the student to a public

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

31  

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

 2  State Board of Education rule.

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

 4  Statutes, is amended to read:

 5         1002.20  K-12 student and parent rights.--Parents of

 6  public school students must receive accurate and timely

 7  information regarding their child's academic progress and must

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

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

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

11         (6)  EDUCATIONAL CHOICE.--

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

13  students may seek whatever public school choice options that

14  are applicable to their students and are available to students

15  in their school districts. These options may include

16  controlled open enrollment, lab schools, charter schools,

17  charter technical career centers, magnet schools, alternative

18  schools, special programs, advanced placement, dual

19  enrollment, International Baccalaureate, International General

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

21  International Certificate of Education, early admissions,

22  credit by examination or demonstration of competency, the New

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

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

25  also include the public school choice options of the corporate

26  income tax credit scholarship programs Opportunity Scholarship

27  Program and the McKay Scholarships for Students with

28  Disabilities Program.

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

30  students may seek private school choice options under certain

31  programs.

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 1         1.  Under the corporate income tax credit scholarship

 2  program for families of students attending schools failing to

 3  make adequate progress Opportunity Scholarship Program, the

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

 5  request and receive an opportunity scholarship from an

 6  eligible nonprofit scholarship-funding organization for the

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

 8  220.1875 the provisions of s. 1002.38.

 9         2.  Under the McKay Scholarships for Students with

10  Disabilities Program, the parent of a public school student

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

12  progress may request and receive a McKay Scholarship for the

13  student to attend a private school in accordance with the

14  provisions of s. 1002.39.

15         3.  Under the corporate income tax credit scholarship

16  program for families that have limited financial resources,

17  the parent of a student who qualifies for free or

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

19  eligible nonprofit scholarship-funding organization for the

20  student to attend a private school in accordance with the

21  provisions of s. 220.187.

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

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

24  accordance with the provisions of s. 1002.41.

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

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

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

28         Section 11.  Section 1002.38, Florida Statutes, is

29  repealed.

30         Section 12.  Section 1002.39, Florida Statutes, is

31  amended to read:

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 1         1002.39  The John M. McKay Scholarships for Students

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

 3  that is separate and distinct from the Opportunity Scholarship

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

 5  Students with Disabilities Program.

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

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

 8  Students with Disabilities Program is established to provide

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

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

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

12  individual education plan has been written in accordance with

13  rules of the State Board of Education. Students with

14  disabilities include K-12 students who are documented as

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

16  educable; a speech or language impairment; a hearing

17  impairment, including deafness; a visual impairment, including

18  blindness; a dual sensory impairment; a physical impairment; a

19  serious emotional disturbance, including an emotional

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

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

22  traumatic brain injury; or autism.

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

24  of a public school student with a disability who is

25  dissatisfied with the student's progress may request and

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

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

28  with this section if:

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

30  attendance at a Florida public school or the Florida School

31  

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

 2  means that the student was:

 3         1.  Enrolled and reported by a school district for

 4  funding during the preceding October and February Florida

 5  Education Finance Program surveys in kindergarten through

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

 7  Juvenile Justice commitment program if funded under the

 8  Florida Education Finance Program;

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

10  Deaf and the Blind during the preceding October and February

11  student membership surveys in kindergarten through grade 12;

12  or

13         3.  Enrolled and reported by a school district for

14  funding during the preceding October and February Florida

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

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

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

18  

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

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

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

22  permanent change of station orders is exempt from this

23  paragraph but must meet all other eligibility requirements to

24  participate in the program.

25         (b)  The parent has obtained acceptance for admission

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

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

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

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

30  communication directly to the department in a manner that

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

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

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

 3  of the parent's request.

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

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

 6  she is:

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

 8  providing educational services to youth in Department of

 9  Juvenile Justice commitment programs;

10         (b)  Receiving a corporate income tax credit

11  scholarship under s. 220.187;

12         (c)  Receiving an educational scholarship pursuant to

13  this chapter;

14         (d)  Participating in a home education program as

15  defined in s. 1002.01(1);

16         (e)  Participating in a private tutoring program

17  pursuant to s. 1002.43;

18         (f)  Participating in a virtual school, correspondence

19  school, or distance learning program that receives state

20  funding pursuant to the student's participation unless the

21  participation is limited to no more than two courses per

22  school year;

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

24  the Blind; or

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

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

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

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

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

30  student returns to a public school, graduates from high

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

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

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

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

 4  school in accordance with this section.

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

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

 7  private school to another participating private school.

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

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

10  an individual education plan meeting, a school district shall

11  notify the parent of the student of all options available

12  pursuant to this section, inform the parent of the

13  availability of the department's telephone hotline and

14  Internet website for additional information on John M. McKay

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

16  to enroll the student in another public school within the

17  district.

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

19  enrolling in another public school in lieu of requesting a

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

21  parent chooses the public school option, the student may

22  continue attending a public school chosen by the parent until

23  the student graduates from high school.

24         3.  If the parent chooses a public school consistent

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

26  the school district shall provide transportation to the public

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

28  provide transportation to a public school chosen that is not

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

30  s. 1002.31.

31  

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

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

 3  district must complete a matrix that assigns the student to

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

 5  2000-2001 school year.

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

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

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

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

10  inform the parent that the district is required to complete

11  the matrix within 30 days after receiving notice of the

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

13  should include the required completion date for the matrix.

14         b.  The school district must complete the matrix of

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

16  McKay Scholarships for Students with Disabilities Program and

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

18  within 30 days after receiving notification of a request to

19  participate in the scholarship program. The school district

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

21  level within 10 school days after its completion.

22         c.  The department shall notify the private school of

23  the amount of the scholarship within 10 days after receiving

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

25  level.

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

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

28  or calculation error.

29         (c)  A school district shall provide notification to

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

31  

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

 2  Scholarship.

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

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

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

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

 7  scholarship payment and before entering the private school in

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

 9  available for the student in the private school.

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

11  alternative, to enroll the student in and transport the

12  student to a public school in an adjacent school district

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

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

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

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

17  pursuant to the Florida Education Finance Program.

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

19  McKay Scholarships for Students with Disabilities Program

20  whose parent requests that the student take the statewide

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

22  student attends private school shall provide locations and

23  times to take all statewide assessments.

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

25  department shall:

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

27  parents and private schools with information on participation

28  in the John M. McKay Scholarships for Students with

29  Disabilities Program.

30         (b)  Annually verify the eligibility of private schools

31  that meet the requirements of subsection (8).

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 1         (c)  Establish a process by which individuals may

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

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

 4  participation. The department shall conduct an inquiry of any

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

 6  referral to the appropriate agency for an investigation, if

 7  the complaint is signed by the complainant and is legally

 8  sufficient. A complaint is legally sufficient if it contains

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

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

11  In order to determine legal sufficiency, the department may

12  require supporting information or documentation from the

13  complainant. A department inquiry is not subject to the

14  requirements of chapter 120.

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

16  statement by participating private schools certifying

17  compliance with state laws and shall retain such records.

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

19  students with the public school enrollment lists prior to each

20  scholarship payment to avoid duplication.

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

22  participating in the John M. McKay Scholarships for Students

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

24  solely to verify the information reported by the schools

25  concerning the enrollment and attendance of students, the

26  credentials of teachers, background screening of teachers, and

27  teachers' fingerprinting results, which information is

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

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

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

31  

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

 2  school.

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

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

 5  Representatives the Department of Education's actions with

 6  respect to implementing accountability in the scholarship

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

 8  allegations or violations of law or rule by an eligible

 9  private school under this program concerning the enrollment

10  and attendance of students, the credentials of teachers,

11  background screening of teachers, and teachers' fingerprinting

12  results and the corrective action taken by the Department of

13  Education.

14         (7)  COMMISSIONER OF EDUCATION AUTHORITY AND

15  OBLIGATIONS.--

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

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

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

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

20  instances in which the noncompliance is correctable within a

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

22  welfare of the students is not threatened, the commissioner

23  may issue a notice of noncompliance which shall provide the

24  private school with a timeframe within which to provide

25  evidence of compliance prior to taking action to suspend or

26  revoke the private school's participation in the scholarship

27  program.

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

29  following:

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

31  revoke a private school's participation in the scholarship

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 1  program, the department shall notify the private school of

 2  such proposed action in writing by certified mail and regular

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

 4  department. The notification shall include the reasons for the

 5  proposed action and notice of the timelines and procedures set

 6  forth in this paragraph.

 7         2.  The private school that is adversely affected by

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

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

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

11  120.57. If the private school is entitled to a hearing under

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

13  Division of Administrative Hearings.

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

15  paragraph, the director of the Division of Administrative

16  Hearings shall expedite the hearing and assign an

17  administrative law judge who shall commence a hearing within

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

19  division and enter a recommended order within 30 days after

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

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

22  days in which to submit written exceptions to the recommended

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

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

25  this subparagraph may be waived upon stipulation by all

26  parties.

27         (c)  The commissioner may immediately suspend payment

28  of scholarship funds if it is determined that there is

29  probable cause to believe that there is:

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

31  welfare of the students; or

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 1         2.  Fraudulent activity on the part of the private

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

 3  fraudulent activity pursuant to this section, the Department

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

 5  release personally identifiable records or reports of students

 6  to the following persons or organizations:

 7         a.  A court of competent jurisdiction in compliance

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

 9  accordance with a lawfully issued subpoena, consistent with

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

11  1232g.

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

13  competent jurisdiction in compliance with an order of that

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

15  subpoena, consistent with the Family Educational Rights and

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

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

18  for law enforcement purposes when the court or other issuing

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

20  subpoena or the information furnished in response to the

21  subpoena not be disclosed, consistent with the Family

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

23  C.F.R. s. 99.31.

24  

25  The commissioner's order suspending payment pursuant to this

26  paragraph may be appealed pursuant to the same procedures and

27  timelines as the notice of proposed action set forth in

28  paragraph (b).

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

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

31  

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 1  Students with Disabilities Program, a private school may be

 2  sectarian or nonsectarian and must:

 3         (a)  Comply with all requirements for private schools

 4  participating in state school choice scholarship programs

 5  pursuant to s. 1002.421.

 6         (b)  Provide to the department all documentation

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

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

 9  the first quarterly scholarship payment is made for the

10  student.

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.  Cooperating with the scholarship student whose

16  parent chooses to participate in the statewide assessments

17  pursuant to s. 1008.22.

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

19  scholarship student regularly attends classes.

20  

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

22  this subsection shall constitute a basis for the ineligibility

23  of the private school to participate in the scholarship

24  program as determined by the department.

25         (9)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM

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

27  Scholarship is exercising his or her parental option to place

28  his or her child in a private school.

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

30  apply for the admission of his or her child.

31  

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

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

 3  payment.

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

 5  Scholarships for Students with Disabilities Program must

 6  remain in attendance throughout the school year unless excused

 7  by the school for illness or other good cause.

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

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

10  published policies.

11         (e)  If the parent requests that the student

12  participating in the John M. McKay Scholarships for Students

13  with Disabilities Program take all statewide assessments

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

15  transporting the student to the assessment site designated by

16  the school district.

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

18  to whom the warrant is made must restrictively endorse the

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

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

21  individual associated with the participating private school as

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

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

24  forfeits the scholarship.

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

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

27  student with disabilities shall be a calculated amount

28  equivalent to the base student allocation in the Florida

29  Education Finance Program multiplied by the appropriate cost

30  factor for the educational program that would have been

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

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 1  she was assigned, multiplied by the district cost

 2  differential.

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

 4  for exceptional students shall be determined and added to the

 5  calculated amount. The calculation shall be based on the

 6  methodology and the data used to calculate the guaranteed

 7  allocation for exceptional students for each district in

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

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

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

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

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

13  student allocation and the 2000-2001 district cost

14  differential for the sending district. Also, the calculated

15  amount shall include the per-student share of supplemental

16  academic instruction funds, instructional materials funds,

17  technology funds, and other categorical funds as provided for

18  such purposes in the General Appropriations Act.

19         3.  The calculated scholarship amount for a student who

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

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

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

23  resides at the time of the scholarship request.

24         4.  Until the school district completes the matrix

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

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

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

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

29  payment shall be adjusted as needed.

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

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

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

 2  assessment fee required by the participating private school

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

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

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

 6  students with disabilities attending private schools on John

 7  M. McKay Scholarships shall be reported separately from other

 8  students reported for purposes of the Florida Education

 9  Finance Program.

10         2.  For program participants who are eligible under

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

12  basis for the calculation of the scholarship amount as

13  provided in subparagraph (a)3. shall:

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

15  attending a private school under this program.

16         b.  Be held harmless for such students from the

17  weighted enrollment ceiling for group 2 programs in s.

18  1011.62(1)(d)3.a. during the first school year in which the

19  students are reported.

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

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

22  participants, the department shall transfer, from General

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

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

25  Florida Education Finance Program and from authorized

26  categorical accounts to a separate account for the scholarship

27  program for quarterly disbursement to the parents of

28  participating students. Funds may not be transferred from any

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

30  Blind for program participants who are eligible under

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

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 1  Juvenile Justice commitment program who chooses to participate

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

 3  Scholarship calculated pursuant to paragraph (b) shall be

 4  transferred from the school district in which the student last

 5  attended a public school prior to commitment to the Department

 6  of Juvenile Justice. When a student enters the scholarship

 7  program, the department must receive all documentation

 8  required for the student's participation, including the

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

10  before the first quarterly scholarship payment is made for the

11  student.

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

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

14  Chief Financial Officer shall make scholarship payments in

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

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

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

18  after department verification of admission acceptance, and

19  subsequent payments shall be made upon verification of

20  continued enrollment and attendance at the private school.

21  Payment must be by individual warrant made payable to the

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

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

24  restrictively endorse the warrant to the private school for

25  deposit into the account of the private school.

26         (f)  Subsequent to each scholarship payment, the

27  department shall request from the Department of Financial

28  Services a sample of endorsed warrants to review and confirm

29  compliance with endorsement requirements.

30  

31  

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

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

 3  Scholarship.

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

 5  private schools within options available to Florida public

 6  school students does not expand the regulatory authority of

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

 8  additional regulation of private schools beyond those

 9  reasonably necessary to enforce requirements expressly set

10  forth in this section.

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

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

13  section, including rules that school districts must use to

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

15  active individual education plan from another state or a

16  foreign country for a transferring student with a disability

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

18  Armed Forces. The rules must identify the appropriate school

19  district personnel who must complete the matrix of services.

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

21  disability is one who was previously enrolled as a student

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

23  public or private school or agency program and who is

24  transferring from out of state or from a foreign country

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

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

27  

28  

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2380

 3                                 

 4  The committee substitute provides that a student is not
    eligible to receive a scholarship under the new tax credit
 5  scholarship program in s. 220.1875, F.S., if he or she:

 6  -Receives a scholarship from another eligible nonprofit
    scholarship funding organization (SFO) or other educational
 7  scholarship under ch. 1002, F.S.;

 8  -Participates in a home education program;

 9  -Participates in a private tutoring program;

10  -Participates in a virtual school, correspondence school, or
    distance learning program that receives state funding for the
11  student unless the participation is limited to no more than
    two courses per school year; or
12  
    -Is currently enrolled in the Florida School for the Deaf and
13  the Blind.

14  The committee substitute:

15  -Requires state and national criminal history records checks
    under s. 435.04, F.S., for owners and operators of SFOs;
16  
    -Requires a new background screening every five years;
17  
    -Requires the Florida Department of Law Enforcement (FDLE) to
18  retain fingerprints and annually check the prints of certain
    SFO personnel against the statewide automated fingerprint
19  identification system;

20  -Requires SFOs to file their audits with the Auditor General
    and the Department of Education (DOE) within 180 days after
21  completion of the SFO's fiscal year;

22  -Requires SFOs to maintain separate accounts for scholarship
    funds and operating funds and to comply with federal
23  antidiscrimination requirements;

24  -Prohibits SFOs from providing scholarships when the owner or
    operator fails to meet the background screening requirements
25  or has filed for personal or corporate bankruptcy for a
    corporation in which the owner or operator held more than a 20
26  percent ownership interest;

27  -Prohibits SFOs from restricting or reserving scholarships for
    use at a particular private school or for a child of an owner
28  or operator;

29  -Prohibits SFOs from having an owner or operator who operates
    an eligible private school that is participating in the
30  scholarship program; and

31  -Requires SFOs to prepare and submit quarterly reports to the
    DOE.
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