Senate Bill sb2846
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Florida Senate - 2007 SB 2846
By Senator Wilson
33-41-07
1 A bill to be entitled
2 An act relating to the tax on corporate income;
3 amending s. 220.187, F.S.; providing for tax
4 credits for contributions to eligible nonprofit
5 educational-improvement organizations, as well
6 as for contributions to eligible nonprofit
7 scholarship-funding organizations; providing
8 that an additional purpose of the section is to
9 enable students in specified grades in public
10 schools to receive certain assistance in
11 attaining grade-level performance; defining
12 terms; providing for allocating among the
13 categories of recipients the total allowable
14 amount of tax credits which may be granted
15 during each state fiscal year; providing
16 obligations of eligible nonprofit
17 educational-improvement organizations; revising
18 parental obligations; revising provisions
19 relating to administration and to deposits of
20 eligible contributions, to conform; providing
21 an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Section 220.187, Florida Statutes, is
26 amended to read:
27 220.187 Credits for contributions to nonprofit
28 scholarship-funding and nonprofit educational-improvement
29 organizations.--
30 (1) PURPOSE.--The purpose of this section is to:
31
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1 (a) Encourage private, voluntary contributions to
2 nonprofit scholarship-funding organizations and eligible
3 nonprofit educational-improvement organizations.
4 (b) Expand educational opportunities for children of
5 families that have limited financial resources.
6 (c) Enable children in this state to achieve a greater
7 level of excellence in their education.
8 (d) Enable students in grades 2, 5, 6, 8, and 9 in
9 public schools to receive tutoring and remediation to attain
10 grade-level performance.
11 (2) DEFINITIONS.--As used in this section, the term:
12 (a) "Department" means the Department of Revenue.
13 (b) "Eligible contribution" means a monetary
14 contribution from a taxpayer, subject to the restrictions
15 provided in this section, to an eligible nonprofit
16 scholarship-funding organization or eligible nonprofit
17 educational-improvement organization. The taxpayer making the
18 contribution may not designate a specific child as the
19 beneficiary of the contribution.
20 (c) "Eligible nonprofit educational-improvement
21 organization" means a charitable organization that is exempt
22 from federal income tax pursuant to s. 501(c)(3) of the
23 Internal Revenue Code and that complies with subsection (5).
24 (d)(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 (e)(d) "Eligible private school" means a private
2 school, as defined in s. 1002.01(2), located in Florida which
3 offers an education to students in any grades K-12 and that
4 meets the requirements in subsection (9) (8).
5 (f)(e) "Owner or operator" includes:
6 1. An owner, president, officer, or director of an
7 eligible nonprofit scholarship-funding organization or
8 nonprofit educational-improvement organization or a person
9 with equivalent decisionmaking authority over an eligible
10 nonprofit scholarship-funding organization or nonprofit
11 educational-improvement organization.
12 2. An owner, operator, superintendent, or principal of
13 an eligible private school or a person with equivalent
14 decisionmaking authority over an eligible private school.
15 (3) PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
16 Income Tax Credit Scholarship Program is established. A
17 student is eligible for a corporate income tax credit
18 scholarship if the student qualifies for free or reduced-price
19 school lunches under the National School Lunch Act and:
20 (a) Was counted as a full-time equivalent student
21 during the previous state fiscal year for purposes of state
22 per-student funding;
23 (b) Received a scholarship from an eligible nonprofit
24 scholarship-funding organization, from a nonprofit
25 educational-improvement organization, or from the State of
26 Florida during the previous school year; or
27 (c) Is eligible to enter kindergarten or first grade;
28 or.
29 (d) Is a student in grade 2, grade 5, grade 6, grade
30 8, or grade 9 in an eligible public school.
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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 or eligible
12 nonprofit educational-improvement organization under this
13 section;
14 (c) Receiving an educational scholarship pursuant to
15 chapter 1002;
16 (d) Participating in a home education program as
17 defined in s. 1002.01(1);
18 (e) Participating in a private tutoring program
19 pursuant to s. 1002.43;
20 (f) Participating in a virtual school, correspondence
21 school, or distance learning program that receives state
22 funding pursuant to the student's participation unless the
23 participation is limited to no more than two courses per
24 school year; or
25 (g) Enrolled in the Florida School for the Deaf and
26 the Blind.
27 (5) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
28 CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
29 (a) There is allowed a credit of 100 percent of an
30 eligible contribution against any tax due for a taxable year
31 under this chapter. However, such a credit may not exceed 75
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1 percent of the tax due under this chapter for the taxable
2 year, after the application of any other allowable credits by
3 the taxpayer. The credit granted by this section shall be
4 reduced by the difference between the amount of federal
5 corporate income tax taking into account the credit granted by
6 this section and the amount of federal corporate income tax
7 without application of the credit granted by this section.
8 (b) The total amount of tax credits and carryforward
9 of tax credits which may be granted each state fiscal year
10 under this section is $60 million to nonprofit
11 scholarship-funding organizations and $28 million to nonprofit
12 educational-improvement organizations $88 million. At least 1
13 percent of the total statewide amount authorized for the tax
14 credit shall be reserved for taxpayers who meet the definition
15 of a small business provided in s. 288.703(1) at the time of
16 application.
17 (c) A taxpayer who files a Florida consolidated return
18 as a member of an affiliated group pursuant to s. 220.131(1)
19 may be allowed the credit on a consolidated return basis;
20 however, the total credit taken by the affiliated group is
21 subject to the limitation established under paragraph (a).
22 (d) Effective for tax years beginning January 1, 2006,
23 a taxpayer may rescind all or part of its allocated tax credit
24 under this section. The amount rescinded shall become
25 available for purposes of the cap for that state fiscal year
26 under this section to an eligible taxpayer as approved by the
27 department if the taxpayer receives notice from the department
28 that the rescindment has been accepted by the department and
29 the taxpayer has not previously rescinded any or all of its
30 tax credit allocation under this section more than once in the
31 previous 3 tax years. Any amount rescinded under this
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1 paragraph shall become available to an eligible taxpayer on a
2 first-come, first-served basis based on tax credit
3 applications received after the date the rescindment is
4 accepted by the department.
5 (6) OBLIGATIONS OF ELIGIBLE NONPROFIT
6 SCHOLARSHIP-FUNDING ORGANIZATIONS.--An eligible nonprofit
7 scholarship-funding organization:
8 (a) Must comply with the antidiscrimination provisions
9 of 42 U.S.C. s. 2000d.
10 (b) Must comply with the following background check
11 requirements:
12 1. All owners and operators as defined in subparagraph
13 (2)(e)1. are, upon employment or engagement to provide
14 services, subject to level 2 background screening as provided
15 under chapter 435. The fingerprints for the background
16 screening must be electronically submitted to the Department
17 of Law Enforcement and can be taken by an authorized law
18 enforcement agency or by an employee of the eligible nonprofit
19 scholarship-funding organization or a private company who is
20 trained to take fingerprints. However, the complete set of
21 fingerprints of an owner or operator may not be taken by the
22 owner or operator. The results of the state and national
23 criminal history check shall be provided to the Department of
24 Education for screening under chapter 435. The cost of the
25 background screening may be borne by the eligible nonprofit
26 scholarship-funding organization or the owner or operator.
27 2. Every 5 years following employment or engagement to
28 provide services or association with an eligible nonprofit
29 scholarship-funding organization, each owner or operator must
30 meet level 2 screening standards as described in s. 435.04, at
31 which time the nonprofit scholarship-funding organization
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1 shall request the Department of Law Enforcement to forward the
2 fingerprints to the Federal Bureau of Investigation for level
3 2 screening. If the fingerprints of an owner or operator are
4 not retained by the Department of Law Enforcement under
5 subparagraph 3., the owner or operator must electronically
6 file a complete set of fingerprints with the Department of Law
7 Enforcement. Upon submission of fingerprints for this purpose,
8 the eligible nonprofit scholarship-funding organization shall
9 request that the Department of Law Enforcement forward the
10 fingerprints to the Federal Bureau of Investigation for level
11 2 screening, and the fingerprints shall be retained by the
12 Department of Law Enforcement under subparagraph 3.
13 3. Beginning July 1, 2007, all fingerprints submitted
14 to the Department of Law Enforcement as required by this
15 paragraph must be retained by the Department of Law
16 Enforcement in a manner approved by rule and entered in the
17 statewide automated fingerprint identification system
18 authorized by s. 943.05(2)(b). The fingerprints must
19 thereafter be available for all purposes and uses authorized
20 for arrest fingerprint cards entered in the statewide
21 automated fingerprint identification system pursuant to s.
22 943.051.
23 4. Beginning July 1, 2007, the Department of Law
24 Enforcement shall search all arrest fingerprint cards received
25 under s. 943.051 against the fingerprints retained in the
26 statewide automated fingerprint identification system under
27 subparagraph 3. Any arrest record that is identified with an
28 owner's or operator's fingerprints must be reported to the
29 Department of Education. The Department of Education shall
30 participate in this search process by paying an annual fee to
31 the Department of Law Enforcement and by informing the
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1 Department of Law Enforcement of any change in the employment,
2 engagement, or association status of the owners or operators
3 whose fingerprints are retained under subparagraph 3. The
4 Department of Law Enforcement shall adopt a rule setting the
5 amount of the annual fee to be imposed upon the Department of
6 Education for performing these services and establishing the
7 procedures for the retention of owner and operator
8 fingerprints and the dissemination of search results. The fee
9 may be borne by the owner or operator of the nonprofit
10 scholarship-funding organization.
11 5. A nonprofit scholarship-funding organization whose
12 owner or operator fails the level 2 background screening shall
13 not be eligible to provide scholarships under this section.
14 6. A nonprofit scholarship-funding organization whose
15 owner or operator in the last 7 years has filed for personal
16 bankruptcy or corporate bankruptcy in a corporation of which
17 he or she owned more than 20 percent shall not be eligible to
18 provide scholarships under this section.
19 (c) Must not have an owner or operator who owns or
20 operates an eligible private school that is participating in
21 the scholarship program.
22 (d) Must provide scholarships, from eligible
23 contributions, to eligible students for:
24 1. Tuition or textbook expenses for, or transportation
25 to, an eligible private school. At least 75 percent of the
26 scholarship funding must be used to pay tuition expenses; or
27 2. Transportation expenses to a Florida public school
28 that is located outside the district in which the student
29 resides or to a lab school as defined in s. 1002.32.
30 (e) Must give priority to eligible students who
31 received a scholarship from an eligible nonprofit
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1 scholarship-funding organization or from the State of Florida
2 during the previous school year.
3 (f) Must provide a scholarship to an eligible student
4 on a first-come, first-served basis unless the student
5 qualifies for priority pursuant to paragraph (e).
6 (g) May not restrict or reserve scholarships for use
7 at a particular private school or provide scholarships to a
8 child of an owner or operator.
9 (h) Must allow an eligible student to attend any
10 eligible private school and must allow a parent to transfer a
11 scholarship during a school year to any other eligible private
12 school of the parent's choice.
13 (i) Must obligate, in the same fiscal year in which
14 the contribution was received, 100 percent of the eligible
15 contribution to provide annual or partial-year scholarships;
16 however, up to 25 percent of the total contribution may be
17 carried forward for expenditure in the following state fiscal
18 year. A scholarship-funding organization must, before granting
19 a scholarship for an academic year, document each scholarship
20 student's eligibility for that academic year. A
21 scholarship-funding organization may not grant multiyear
22 scholarships in one approval process. No portion of eligible
23 contributions may be used for administrative expenses. All
24 interest accrued from contributions must be used for
25 scholarships.
26 (j) Must maintain separate accounts for scholarship
27 funds and operating funds.
28 (k) With the prior approval of the Department of
29 Education, may transfer funds to another eligible nonprofit
30 scholarship-funding organization if additional funds are
31 required to meet scholarship demand at the receiving nonprofit
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1 scholarship-funding organization. A transfer shall be limited
2 to the greater of $500,000 or 20 percent of the total
3 contributions received by the nonprofit scholarship-funding
4 organization making the transfer. All transferred funds must
5 be deposited by the receiving nonprofit scholarship-funding
6 organization into its scholarship accounts. All transferred
7 amounts received by any nonprofit scholarship-funding
8 organization must be separately disclosed in the annual
9 financial and compliance audit required in this section.
10 (l) Must provide to the Auditor General and the
11 Department of Education an annual financial and compliance
12 audit of its accounts and records conducted by an independent
13 certified public accountant and in accordance with rules
14 adopted by the Auditor General. The audit must be conducted in
15 compliance with generally accepted auditing standards and must
16 include a report on financial statements presented in
17 accordance with generally accepted accounting principles set
18 forth by the American Institute of Certified Public
19 Accountants for not-for-profit organizations and a
20 determination of compliance with the statutory eligibility and
21 expenditure requirements set forth in this section. Audits
22 must be provided to the Auditor General and the Department of
23 Education within 180 days after completion of the eligible
24 nonprofit scholarship-funding organization's fiscal year.
25 (m) Must prepare and submit quarterly reports to the
26 Department of Education pursuant to paragraph (10)(m) (9)(m).
27 In addition, an eligible nonprofit scholarship-funding
28 organization must submit in a timely manner any information
29 requested by the Department of Education relating to the
30 scholarship program.
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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 (7) OBLIGATIONS OF ELIGIBLE NONPROFIT
7 EDUCATIONAL-IMPROVEMENT ORGANIZATIONS.--
8 (a) An eligible nonprofit educational-improvement
9 organization that receives an eligible contribution must spend
10 100 percent of the eligible contribution to establish
11 scholarships to eligible students as defined in subsection (3)
12 in the same year the contribution was received. A portion of
13 contributions may not be used for administrative expenses.
14 All portions of interest accrued from contributions must be
15 used for the establishment of scholarships.
16 (b) An eligible nonprofit educational-improvement
17 organization shall ensure that payments are made to parents or
18 guardians of eligible students as defined in subsection (3).
19 Payment of the scholarship by the eligible nonprofit
20 educational-improvement organization must be by individual
21 warrant or check made payable to the student's parent or
22 guardian. The warrant or check must be mailed by the eligible
23 nonprofit educational-improvement organization to the eligible
24 public school that the qualified student is attending, and the
25 student's parent or guardian shall restrictively endorse the
26 warrant or check to the school. An eligible nonprofit
27 educational-improvement organization shall ensure that, upon
28 receipt of a scholarship warrant or check, the parent or
29 guardian to whom the warrant or check is made restrictively
30 endorses the warrant or check to the eligible public school
31 that the student is attending for deposit into the account of
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1 the school. Recipient students must be funded until
2 grade-level performance is achieved before new qualified
3 students can be funded. Students in grade 2 shall receive
4 priority, followed by those in grade 9, grade 8, grade 6, and
5 grade 5.
6 (c) The amount of a scholarship for an eligible
7 student as defined in subsection (3) for any single school
8 year by all eligible nonprofit educational-improvement
9 organizations from eligible contributions may not exceed
10 $3,000.
11 (d) Payment by the eligible nonprofit
12 educational-improvement organization must not exceed the
13 amount needed to have the qualified student attain grade-level
14 performance or $3,000 in any school year, whichever is less.
15 (8)(7) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
16 PARTICIPATION.--
17 (a) The parent must select an eligible private school
18 and apply for the admission of his or her child.
19 (b) The parent must inform the child's school district
20 when the parent withdraws his or her child to attend an
21 eligible private school.
22 (c) Any student participating in the scholarship
23 program must remain in attendance throughout the school year
24 unless excused by the school for illness or other good cause.
25 (d) Each parent and each student has an obligation to
26 the private school to comply with the private school's
27 published policies.
28 (e) The parent shall ensure that the student
29 participating in the scholarship program takes the
30 norm-referenced assessment offered by the private school. The
31 parent may also choose to have the student participate in the
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1 statewide assessments pursuant to s. 1008.22. If the parent
2 requests that the student participating in the scholarship
3 program take statewide assessments pursuant to s. 1008.22, the
4 parent is responsible for transporting the student to the
5 assessment site designated by the school district.
6 (f) Upon receipt of a scholarship warrant from the
7 eligible nonprofit scholarship-funding organization or an
8 eligible nonprofit educational-improvement organization, the
9 parent to whom the warrant is made must restrictively endorse
10 the warrant to the private school for deposit into the account
11 of the private school. The parent may not designate any entity
12 or individual associated with the participating private school
13 as the parent's attorney in fact to endorse a scholarship
14 warrant. A participant who fails to comply with this paragraph
15 forfeits the scholarship.
16 (9)(8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--An
17 eligible private school may be sectarian or nonsectarian and
18 must:
19 (a) Comply with all requirements for private schools
20 participating in state school choice scholarship programs
21 pursuant to s. 1002.421.
22 (b) Provide to the eligible nonprofit
23 scholarship-funding organization or eligible nonprofit
24 educational-improvement organization, upon request, all
25 documentation required for the student's participation,
26 including the private school's and student's fee schedules.
27 (c) Be academically accountable to the parent for
28 meeting the educational needs of the student by:
29 1. At a minimum, annually providing to the parent a
30 written explanation of the student's progress.
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1 2. Annually administering or making provision for
2 students participating in the scholarship program to take one
3 of the nationally norm-referenced tests identified by the
4 Department of Education. Students with disabilities for whom
5 standardized testing is not appropriate are exempt from this
6 requirement. A participating private school must report a
7 student's scores to the parent and to the independent research
8 organization selected by the Department of Education as
9 described in paragraph (10)(j) (9)(j).
10 3. Cooperating with the scholarship student whose
11 parent chooses to participate in the statewide assessments
12 pursuant to s. 1008.32.
13 (d) Employ or contract with teachers who have regular
14 and direct contact with each student receiving a scholarship
15 under this section at the school's physical location.
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17 The inability of a private school to meet the requirements of
18 this subsection shall constitute a basis for the ineligibility
19 of the private school to participate in the scholarship
20 program as determined by the Department of Education.
21 (10)(9) DEPARTMENT OF EDUCATION OBLIGATIONS.--The
22 Department of Education shall:
23 (a) Annually submit to the department, by March 15, a
24 list of eligible nonprofit educational-improvement
25 organizations and eligible nonprofit scholarship-funding
26 organizations that meet the requirements of paragraph (2)(c)
27 or paragraph (2)(d), respectively.
28 (b) Annually verify the eligibility of nonprofit
29 educational-improvement organizations and nonprofit
30 scholarship-funding organizations that meet the requirements
31 of paragraph (2)(c) or paragraph (2)(d), respectively.
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1 (c) Annually verify the eligibility of private schools
2 that meet the requirements of subsection (9) (8).
3 (d) Annually verify the eligibility of expenditures as
4 provided in paragraph (6)(d) using the audit required by
5 paragraph (6)(l).
6 (e) Establish a toll-free hotline that provides
7 parents and private schools with information on participation
8 in the scholarship program.
9 (f) Establish a process by which individuals may
10 notify the Department of Education of any violation by a
11 parent, private school, or school district of state laws
12 relating to program participation. The Department of Education
13 shall conduct an inquiry of any written complaint of a
14 violation of this section, or make a referral to the
15 appropriate agency for an investigation, if the complaint is
16 signed by the complainant and is legally sufficient. A
17 complaint is legally sufficient if it contains ultimate facts
18 that show that a violation of this section or any rule adopted
19 by the State Board of Education has occurred. In order to
20 determine legal sufficiency, the Department of Education may
21 require supporting information or documentation from the
22 complainant. A department inquiry is not subject to the
23 requirements of chapter 120.
24 (g) Require an annual, notarized, sworn compliance
25 statement by participating private schools certifying
26 compliance with state laws and shall retain such records.
27 (h) Cross-check the list of participating scholarship
28 students with the public school enrollment lists to avoid
29 duplication.
30 (i) In accordance with State Board of Education rule,
31 identify and select the nationally norm-referenced tests that
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1 are comparable to the norm-referenced provisions of the
2 Florida Comprehensive Assessment Test (FCAT) provided that the
3 FCAT may be one of the tests selected. However, the Department
4 of Education may approve the use of an additional assessment
5 by the school if the assessment meets industry standards of
6 quality and comparability.
7 (j) Select an independent research organization, which
8 may be a public or private entity or university, to which
9 participating private schools must report the scores of
10 participating students on the nationally norm-referenced tests
11 administered by the private school. The independent research
12 organization must annually report to the Department of
13 Education on the year-to-year improvements of participating
14 students. The independent research organization must analyze
15 and report student performance data in a manner that protects
16 the rights of students and parents as mandated in 20 U.S.C. s.
17 1232g, the Family Educational Rights and Privacy Act, and must
18 not disaggregate data to a level that will disclose the
19 academic level of individual students or of individual
20 schools. To the extent possible, the independent research
21 organization must accumulate historical performance data on
22 students from the Department of Education and private schools
23 to describe baseline performance and to conduct longitudinal
24 studies. To minimize costs and reduce time required for
25 third-party analysis and evaluation, the Department of
26 Education shall conduct analyses of matched students from
27 public school assessment data and calculate control group
28 learning gains using an agreed-upon methodology outlined in
29 the contract with the third-party evaluator. The sharing of
30 student data must be in accordance with requirements of 20
31 U.S.C. s. 1232g, the Family Educational Rights and Privacy
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1 Act, and shall be for the sole purpose of conducting the
2 evaluation. All parties must preserve the confidentiality of
3 such information as required by law.
4 (k) Notify an eligible nonprofit scholarship-funding
5 organization or an eligible nonprofit educational-improvement
6 organization of any of the organization's identified students
7 who are receiving educational scholarships pursuant to chapter
8 1002.
9 (l) Notify an eligible nonprofit scholarship-funding
10 organization or an eligible nonprofit educational-improvement
11 organization of any of the organization's identified students
12 who are receiving corporate income tax credit scholarships
13 from other such eligible nonprofit scholarship-funding
14 organizations.
15 (m) Require quarterly reports by an eligible nonprofit
16 scholarship-funding organization or an eligible nonprofit
17 educational-improvement organization regarding the number of
18 students participating in the scholarship program, the private
19 schools at which the students are enrolled, and other
20 information that deemed necessary by the Department of
21 Education considers necessary.
22 (n)1. Conduct random site visits to private schools
23 participating in the Corporate Tax Credit Scholarship Program.
24 The purpose of the site visits is solely to verify the
25 information reported by the schools concerning the enrollment
26 and attendance of students, the credentials of teachers,
27 background screening of teachers, and teachers' fingerprinting
28 results. The Department of Education may not make more than
29 seven random site visits each year and may not make more than
30 one random site visit each year to the same private school.
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1 2. Annually, by December 15, report to the Governor,
2 the President of the Senate, and the Speaker of the House of
3 Representatives the Department of Education's actions with
4 respect to implementing accountability in the scholarship
5 program under this section and s. 1002.421, any substantiated
6 allegations or violations of law or rule by an eligible
7 private school under this program concerning the enrollment
8 and attendance of students, the credentials of teachers,
9 background screening of teachers, and teachers' fingerprinting
10 results and the corrective action taken by the Department of
11 Education.
12 (11)(10) COMMISSIONER OF EDUCATION AUTHORITY AND
13 OBLIGATIONS.--
14 (a) The Commissioner of Education shall deny, suspend,
15 or revoke a private school's participation in the scholarship
16 program if it is determined that the private school has failed
17 to comply with the provisions of this section. However, if in
18 instances in which the noncompliance is correctable within a
19 reasonable amount of time and in which the health, safety, or
20 welfare of the students is not threatened, the commissioner
21 may issue a notice of noncompliance that shall provide the
22 private school with a timeframe within which to provide
23 evidence of compliance before prior to taking action to
24 suspend or revoke the private school's participation in the
25 scholarship program.
26 (b) The commissioner's determination is subject to the
27 following:
28 1. If the commissioner intends to deny, suspend, or
29 revoke a private school's participation in the scholarship
30 program, the Department of Education shall notify the private
31 school of such proposed action in writing by certified mail
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1 and regular mail to the private school's address of record
2 with the Department of Education. The notification must shall
3 include the reasons for the proposed action and notice of the
4 timelines and procedures set forth in this paragraph.
5 2. The private school that is adversely affected by
6 the proposed action shall have 15 days from receipt of the
7 notice of proposed action to file with the Department of
8 Education's agency clerk a request for a proceeding pursuant
9 to ss. 120.569 and 120.57. If the private school is entitled
10 to a hearing under s. 120.57(1), the Department of Education
11 shall forward the request to the Division of Administrative
12 Hearings.
13 3. Upon receipt of a request referred pursuant to this
14 paragraph, the director of the Division of Administrative
15 Hearings shall expedite the hearing and assign an
16 administrative law judge who shall commence a hearing within
17 30 days after the receipt of the formal written request by the
18 division and enter a recommended order within 30 days after
19 the hearing or within 30 days after receipt of the hearing
20 transcript, whichever is later. Each party shall be allowed 10
21 days in which to submit written exceptions to the recommended
22 order. A final order shall be entered by the agency within 30
23 days after the entry of a recommended order. The provisions of
24 this subparagraph may be waived upon stipulation by all
25 parties.
26 (c) The commissioner may immediately suspend payment
27 of scholarship funds if it is determined that there is
28 probable cause to believe that there is:
29 1. An imminent threat to the health, safety, and
30 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 (12)(11) SCHOLARSHIP AMOUNT AND PAYMENT.--
30 (a) The amount of a scholarship provided to any
31 student for any single school year by an eligible nonprofit
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1 scholarship-funding organization or an eligible nonprofit
2 educational-improvement organization from eligible
3 contributions may shall not exceed the following annual
4 limits:
5 1. Three thousand seven hundred fifty dollars for a
6 scholarship awarded to a student enrolled in an eligible
7 private school.
8 2. Five hundred dollars for a scholarship awarded to a
9 student enrolled in a Florida public school that is located
10 outside the district in which the student resides or in a lab
11 school as defined in s. 1002.32.
12 (b) Payment of the scholarship by the eligible
13 nonprofit scholarship-funding organization or the eligible
14 nonprofit educational-improvement organization must shall be
15 by individual warrant made payable to the student's parent. If
16 the parent chooses that his or her child attend an eligible
17 private school, the warrant must be delivered by the eligible
18 nonprofit scholarship-funding organization or eligible
19 nonprofit educational-improvement organization to the private
20 school of the parent's choice, and the parent shall
21 restrictively endorse the warrant to the private school. An
22 eligible nonprofit scholarship-funding organization or
23 eligible nonprofit educational-improvement organization shall
24 ensure that the parent to whom the warrant is made
25 restrictively endorsed the warrant to the private school for
26 deposit into the account of the private school.
27 (c) An eligible nonprofit scholarship-funding
28 organization or eligible nonprofit educational-improvement
29 organization shall obtain verification from the private school
30 of a student's continued attendance at the school prior to
31 each scholarship payment.
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1 (d) Payment of the scholarship shall be made by the
2 eligible nonprofit scholarship-funding organization or
3 eligible nonprofit educational-improvement organization no
4 less frequently than on a quarterly basis.
5 (13)(12) ADMINISTRATION; RULES.--
6 (a) If the credit granted pursuant to this section is
7 not fully used in any one year because of insufficient tax
8 liability on the part of the corporation, the unused amount
9 may be carried forward for a period not to exceed 3 years;
10 however, any taxpayer that seeks to carry forward an unused
11 amount of tax credit must submit an application for allocation
12 of tax credits or carryforward credits as required in
13 paragraph (d) in the year that the taxpayer intends to use the
14 carryforward. This carryforward applies to all approved
15 contributions made after January 1, 2002. A taxpayer may not
16 convey, assign, or transfer the credit authorized by this
17 section to another entity unless all of the assets of the
18 taxpayer are conveyed, assigned, or transferred in the same
19 transaction.
20 (b) An application for a tax credit pursuant to this
21 section shall be submitted to the department on forms
22 established by rule of the department.
23 (c) The department and the Department of Education
24 shall develop a cooperative agreement to assist in the
25 administration of this section.
26 (d) The department shall adopt rules necessary to
27 administer this section, including rules establishing
28 application forms and procedures and governing the allocation
29 of tax credits and carryforward credits under this section on
30 a first-come, first-served basis.
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1 (e) The State Board of Education shall adopt rules
2 pursuant to ss. 120.536(1) and 120.54 to administer this
3 section as it relates to the roles of the Department of
4 Education and the Commissioner of Education.
5 (14)(13) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All
6 eligible contributions received by an eligible nonprofit
7 scholarship-funding organization or eligible nonprofit
8 educational-improvement organization must shall be deposited
9 in a manner consistent with s. 17.57(2).
10 Section 2. This act shall take effect July 1, 2007.
11
12 *****************************************
13 SENATE SUMMARY
14 Relates to the tax on corporate income. Provides for tax
credits for contributions to eligible nonprofit
15 educational-improvement organizations, as well as for
contributions to eligible nonprofit scholarship-funding
16 organizations. Provides that an additional purpose of s.
220.187, F.S., is to enable public-school students in
17 grades 2, 5, 6, 8, and 9 to receive certain assistance in
attaining grade-level performance. Defines terms.
18 Provides for allocating among the categories of
recipients the total allowable amount of tax credits
19 which may be granted during each state fiscal year.
Provides obligations of eligible nonprofit
20 educational-improvement organizations. Revises parental
obligations. Revises provisions relating to
21 administration and to deposits of eligible contributions,
to conform.
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