| 1 | A bill to be entitled |
| 2 | An act relating to student financial assistance; creating |
| 3 | s. 1009.893, F.S.; creating the Sure Futures Postgraduate |
| 4 | Scholarship Program to match private-sector businesses |
| 5 | that need employees who have advanced degrees with |
| 6 | students who are seeking advanced degrees and employment; |
| 7 | establishing the Sure Futures Foundation and a foundation |
| 8 | board to administer the program; providing membership and |
| 9 | duties of the foundation board; providing criteria for |
| 10 | student and corporate partner participation in the |
| 11 | program; providing that corporate partners shall donate |
| 12 | funds for scholarships and receive corporate income tax |
| 13 | credits for amounts donated; providing restrictions on tax |
| 14 | credits; providing for scholarship conversion to a low- |
| 15 | interest loan if certain student or employee obligations |
| 16 | are not met; providing duties of the Department of |
| 17 | Education and state universities; amending s. 220.02, |
| 18 | F.S.; adding the new tax credit to the list of allowable |
| 19 | credits; amending s. 220.13, F.S.; adding the new tax |
| 20 | credit to the list of state corporate income tax credits |
| 21 | that must be added to a taxpayer's adjusted federal |
| 22 | income; providing an appropriation; providing an effective |
| 23 | date. |
| 24 |
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| 25 | Be It Enacted by the Legislature of the State of Florida: |
| 26 |
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| 27 | Section 1. Section 1009.893, Florida Statutes, is created |
| 28 | to read: |
| 29 | 1009.893 Sure Futures Postgraduate Scholarship Program.-- |
| 30 | (1) The Sure Futures Postgraduate Scholarship Program is |
| 31 | created to establish a scholarship program to match private- |
| 32 | sector businesses that need employees who have advanced degrees |
| 33 | with students who are seeking both advanced degrees and |
| 34 | employment. The goals of the program are to provide for a better |
| 35 | educated workforce by offering students greater access to |
| 36 | advanced degrees and to recruit and retain Florida's best and |
| 37 | brightest graduate students by offering them comprehensive |
| 38 | financial assistance and employment. |
| 39 | (2) The Sure Futures Foundation is established and shall |
| 40 | seek s. 501(c)(3) Internal Revenue Code designation. The |
| 41 | foundation shall be governed by the Sure Futures Foundation |
| 42 | Board, which shall administer the Sure Futures Postgraduate |
| 43 | Scholarship Program with guidance from the Board of Governors |
| 44 | and the State Board of Education. Duties of the foundation board |
| 45 | shall include, but not be limited to: |
| 46 | (a) Adoption of policies and procedures for implementation |
| 47 | of the program, including approval of corporate partners and |
| 48 | their scholarship criteria. |
| 49 | (b) Issuance of certificate letters to corporate partners |
| 50 | acknowledging their eligibility for tax credits against their |
| 51 | chapter 220 tax liabilities. The letters of certificate shall be |
| 52 | in a form developed by rule of the Department of Education. |
| 53 | (c) Establishment of a process for approval of printed |
| 54 | materials, marketing, and advertising. |
| 55 | (3) The foundation board shall be comprised of the |
| 56 | following members: |
| 57 | (a) The Commissioner of Education as an ex officio member. |
| 58 | (b) The chair of the Board of Governors as an ex officio |
| 59 | member. |
| 60 | (c) Four state university presidents selected by the State |
| 61 | University Presidents' Association to serve 2-year terms. |
| 62 | (d) Four corporate partners participating in the program, |
| 63 | recommended by the Commissioner of Education and selected by the |
| 64 | Governor, to serve 2-year terms. |
| 65 | (e) One graduate student recommended by the Commissioner |
| 66 | of Education and selected by the Governor to serve a 1-year |
| 67 | term. |
| 68 |
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| 69 | The Commissioner of Education, the chair of the Board of |
| 70 | Governors, the university presidents, and the corporate partners |
| 71 | may designate a specific individual to represent them at board |
| 72 | meetings. The foundation board members shall serve without |
| 73 | compensation, but are entitled to receive reimbursement for |
| 74 | travel and per diem expenses incurred in the performance of |
| 75 | their duties in accordance with s. 112.061. The Department of |
| 76 | Education shall provide administrative support and staff to the |
| 77 | foundation. |
| 78 | (4)(a) The following students are eligible to obtain a |
| 79 | list of Florida corporate partners and the graduate degree |
| 80 | programs for which the partners are seeking candidates: |
| 81 | 1. A student in his or her senior year who is an |
| 82 | undergraduate student at a state university. |
| 83 | 2. A student in his or her senior year who is an |
| 84 | undergraduate student at an out-of-state university but who |
| 85 | would otherwise qualify as a resident for purposes of in-state |
| 86 | tuition. |
| 87 | 3. A graduate of a state university who intends to pursue |
| 88 | a graduate degree program at a state university. |
| 89 | (b) A student shall apply through the program to each |
| 90 | individual corporate partner using a standard application form. |
| 91 | A predetermined limit shall be established by the foundation |
| 92 | board for the maximum number of applications a student may |
| 93 | submit in a given scholarship cycle. |
| 94 | (c) After the initial candidate screening and interview |
| 95 | phase, a student selected by a corporate partner shall sign a |
| 96 | contract agreeing to borrow scholarship funds through the |
| 97 | program, with a waiver-of-payment provision if a 4-year |
| 98 | employment obligation is completed. The scholarship shall cover |
| 99 | tuition, fees, and books for the degree program and room and |
| 100 | board based on the university dormitory and meal plan rate for |
| 101 | each year the student is enrolled full time as a graduate |
| 102 | student. |
| 103 | (d) A student must maintain a minimum grade point average |
| 104 | as determined by the corporate partner. |
| 105 | (e) If a student is unable to take a full course load |
| 106 | during a summer semester, the student may be required by the |
| 107 | corporate partner to participate in an internship program. |
| 108 | (f) Upon graduation with an advanced degree, a graduate |
| 109 | shall begin working for the corporate partner and must remain |
| 110 | employed in Florida by the partner for a minimum of 4 years as |
| 111 | stipulated in the contract. |
| 112 | (g) If a student fails to maintain the required grade |
| 113 | point average or the graduate terminates his or her employment |
| 114 | before completing the 4-year obligation, a prorated portion of |
| 115 | the scholarship shall convert to a low-interest loan. |
| 116 | (h) The contract signed by the corporate partner and the |
| 117 | student shall clearly state the terms of the loan, the company's |
| 118 | expectations for the student's performance, employment |
| 119 | requirements, and potential legal remedies if the terms and |
| 120 | conditions of the contract are not met. |
| 121 | (5)(a) A corporate partner that desires new employees who |
| 122 | have advanced degrees shall make a monetary contribution to the |
| 123 | program in amounts equal to the scholarship funds necessary for |
| 124 | completion of a degree program from which it wishes to draw |
| 125 | students. Contributions may be made in one lump sum or on an |
| 126 | annual basis. |
| 127 | (b) A corporate partner may establish criteria, including, |
| 128 | but not limited to, the degree sought and minimum grade point |
| 129 | average and extracurricular activity requirements. |
| 130 | (c) A corporate partner may select the state universities |
| 131 | at which students may enroll or it may allow its scholarships to |
| 132 | be available for study at any state university. |
| 133 | (d)1. A corporate partner shall receive a credit against |
| 134 | its corporate income tax liability equal to the amount of the |
| 135 | contribution. For the first 2 years of the program, the total |
| 136 | tax credits available to corporate partners shall be limited to |
| 137 | $10 million per year. Beginning with the third year of the |
| 138 | program, as more corporate partners participate, the total tax |
| 139 | credits available to corporate partners shall be increased, as |
| 140 | specified by the Legislature. Beginning with the sixth year of |
| 141 | the program, a tax credit shall be 75 percent of a contribution |
| 142 | and, beginning with the eleventh year of the program, a tax |
| 143 | credit shall be 50 percent of a contribution. |
| 144 | 2. A corporate partner shall submit copies of its |
| 145 | certificate letter to the Department of Revenue at the time it |
| 146 | claims a tax credit against its corporate income tax |
| 147 | liabilities. |
| 148 | 3. If the corporate partner cannot use the entire tax |
| 149 | credit in the taxable year or reporting period in which the |
| 150 | credit is awarded because of insufficient tax liability, any |
| 151 | excess amount may be carried forward to a succeeding taxable |
| 152 | year or reporting period, for up to 10 years, at which time the |
| 153 | credits expire. |
| 154 | 4. A corporation that files a Florida consolidated return |
| 155 | as a member of an affiliated group pursuant to s. 220.131(1) may |
| 156 | be allowed the credit on a consolidated return basis. |
| 157 | 5. A corporation may not convey, assign, or transfer the |
| 158 | credit authorized by this section to another entity unless all |
| 159 | of the assets of the corporation are conveyed, assigned, or |
| 160 | transferred in the same transaction. |
| 161 | (e) If a corporate partner terminates a scholarship |
| 162 | employee for reasons other than malfeasance, misfeasance, or |
| 163 | nonfeasance prior to the employee's completion of the 4-year |
| 164 | obligation, the employee shall not be required to repay the |
| 165 | scholarship. A corporate partner is encouraged to establish |
| 166 | protocols to retain an employee prior to his or her termination. |
| 167 | (6)(a) The Office of Student Financial Assistance of the |
| 168 | Department of Education shall establish a central database of |
| 169 | corporate partners, the graduate degree programs for which the |
| 170 | partners are seeking candidates, and student applicants and |
| 171 | their profiles. The office shall establish a standard |
| 172 | application for use by all state universities. |
| 173 | (b) On an annual basis, the Department of Education shall |
| 174 | establish the amount necessary to cover the costs for degree |
| 175 | programs for which corporate partners may make contributions and |
| 176 | receive tax credits. |
| 177 | (7) Prepared documentation regarding the program shall be |
| 178 | made available through the appropriate office at each state |
| 179 | university. As deemed appropriate by its administration, a state |
| 180 | university may provide additional information or activities, |
| 181 | such as providing one-on-one discussions with advisors, |
| 182 | conducting seminars on the program, or working with companies in |
| 183 | its service area to create scholarships through the program. |
| 184 | (8) State agencies, local workforce boards, chambers of |
| 185 | commerce, and Enterprise Florida, Inc., shall be encouraged to |
| 186 | promote corporate partner and student participation in the |
| 187 | program. |
| 188 | (9) The Department of Education shall adopt rules |
| 189 | necessary to implement this section, including rules |
| 190 | establishing application forms and procedures governing the |
| 191 | certification of eligibility of corporate partners for tax |
| 192 | credits under this section. |
| 193 | (10) The Department of Education and the Department of |
| 194 | Revenue shall develop a cooperative agreement to assist each |
| 195 | other in implementing the tax credits created under this |
| 196 | section. |
| 197 | Section 2. Subsection (8) of section 220.02, Florida |
| 198 | Statutes, is amended to read: |
| 199 | 220.02 Legislative intent.-- |
| 200 | (8) It is the intent of the Legislature that credits |
| 201 | against either the corporate income tax or the franchise tax be |
| 202 | applied in the following order: those enumerated in s. 631.828, |
| 203 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
| 204 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
| 205 | those enumerated in s. 220.1895, those enumerated in s. 221.02, |
| 206 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
| 207 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
| 208 | those enumerated in s. 220.185, those enumerated in s. 220.187, |
| 209 | those enumerated in s. 220.192, and those enumerated in s. |
| 210 | 220.193, and those enumerated in s. 1009.893. |
| 211 | Section 3. Paragraph (a) of subsection (1) of section |
| 212 | 220.13, Florida Statutes, is amended to read: |
| 213 | 220.13 "Adjusted federal income" defined.-- |
| 214 | (1) The term "adjusted federal income" means an amount |
| 215 | equal to the taxpayer's taxable income as defined in subsection |
| 216 | (2), or such taxable income of more than one taxpayer as |
| 217 | provided in s. 220.131, for the taxable year, adjusted as |
| 218 | follows: |
| 219 | (a) Additions.--There shall be added to such taxable |
| 220 | income: |
| 221 | 1. The amount of any tax upon or measured by income, |
| 222 | excluding taxes based on gross receipts or revenues, paid or |
| 223 | accrued as a liability to the District of Columbia or any state |
| 224 | of the United States which is deductible from gross income in |
| 225 | the computation of taxable income for the taxable year. |
| 226 | 2. The amount of interest which is excluded from taxable |
| 227 | income under s. 103(a) of the Internal Revenue Code or any other |
| 228 | federal law, less the associated expenses disallowed in the |
| 229 | computation of taxable income under s. 265 of the Internal |
| 230 | Revenue Code or any other law, excluding 60 percent of any |
| 231 | amounts included in alternative minimum taxable income, as |
| 232 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 233 | taxpayer pays tax under s. 220.11(3). |
| 234 | 3. In the case of a regulated investment company or real |
| 235 | estate investment trust, an amount equal to the excess of the |
| 236 | net long-term capital gain for the taxable year over the amount |
| 237 | of the capital gain dividends attributable to the taxable year. |
| 238 | 4. That portion of the wages or salaries paid or incurred |
| 239 | for the taxable year which is equal to the amount of the credit |
| 240 | allowable for the taxable year under s. 220.181. This |
| 241 | subparagraph shall expire on the date specified in s. 290.016 |
| 242 | for the expiration of the Florida Enterprise Zone Act. |
| 243 | 5. That portion of the ad valorem school taxes paid or |
| 244 | incurred for the taxable year which is equal to the amount of |
| 245 | the credit allowable for the taxable year under s. 220.182. This |
| 246 | subparagraph shall expire on the date specified in s. 290.016 |
| 247 | for the expiration of the Florida Enterprise Zone Act. |
| 248 | 6. The amount of emergency excise tax paid or accrued as a |
| 249 | liability to this state under chapter 221 which tax is |
| 250 | deductible from gross income in the computation of taxable |
| 251 | income for the taxable year. |
| 252 | 7. That portion of assessments to fund a guaranty |
| 253 | association incurred for the taxable year which is equal to the |
| 254 | amount of the credit allowable for the taxable year. |
| 255 | 8. In the case of a nonprofit corporation which holds a |
| 256 | pari-mutuel permit and which is exempt from federal income tax |
| 257 | as a farmers' cooperative, an amount equal to the excess of the |
| 258 | gross income attributable to the pari-mutuel operations over the |
| 259 | attributable expenses for the taxable year. |
| 260 | 9. The amount taken as a credit for the taxable year under |
| 261 | s. 220.1895. |
| 262 | 10. Up to nine percent of the eligible basis of any |
| 263 | designated project which is equal to the credit allowable for |
| 264 | the taxable year under s. 220.185. |
| 265 | 11. The amount taken as a credit for the taxable year |
| 266 | under s. 220.187. |
| 267 | 12. The amount taken as a credit for the taxable year |
| 268 | under s. 220.192. |
| 269 | 13. The amount taken as a credit for the taxable year |
| 270 | under s. 220.193. |
| 271 | 14. The amount taken as a credit for the taxable year |
| 272 | under s. 1009.893. |
| 273 | Section 4. There is appropriated from nonrecurring general |
| 274 | revenue a sum not to exceed $200,000 to the Department of |
| 275 | Education to pay for costs associated with administering the |
| 276 | Sure Futures Foundation and the Sure Futures Postgraduate |
| 277 | Scholarship Program. |
| 278 | Section 5. This act shall take effect July 1, 2008. |