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Senator Gaetz moved the following amendment:

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     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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     Section 1.  Subsections (1) and (3), paragraph (b) of

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subsection (5), paragraphs (d), (i), and (m) of subsection (6),

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paragraph (e) of subsection (7), paragraph (c) of subsection (8),

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and subsection (11) of section 220.187, Florida Statutes, are

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amended, paragraphs (k) through (n) of subsection (9) are

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redesignated as paragraphs (m) through (p), respectively, new

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paragraphs (k) and (l) are added to that subsection, and a new

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subsection (14) is added to that section, to read:

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     220.187  Credits for contributions to nonprofit scholarship-

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funding organizations.--

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     (1) FINDINGS AND PURPOSE.--

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     (a) The Legislature finds that:

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     1. It has the inherent power to determine subjects of

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taxation for general or particular public purposes.

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     2. Expanding educational opportunities and improving the

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quality of educational services within the state are valid public

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purposes that the Legislature may promote using its sovereign

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power to determine subjects of taxation and exemptions from

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taxation.

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     3. Ensuring that all parents, regardless of means, may

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exercise and enjoy their basic right to educate their children as

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they see fit is a valid public purpose that the Legislature may

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promote using its sovereign power to determine subjects of

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taxation and exemptions from taxation.

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     4. Expanding educational opportunities and the healthy

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competition they promote are critical to improving the quality of

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education in the state and to ensuring that all children receive

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the high-quality education to which they are entitled.

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     (b) The purpose of this section is to:

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     1.(a) Enable taxpayers to make Encourage private, voluntary

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contributions to nonprofit scholarship-funding organizations in

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order to promote the general welfare.

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     2. Provide taxpayers who wish to help parents with limited

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resources exercise their basic right to educate their children as

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they see fit with a means to do so.

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     3.(b) Promote the general welfare by expanding Expand

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educational opportunities for children of families that have

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limited financial resources.

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

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level of excellence in their education.

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     5. Improve the quality of education in this state, both by

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expanding educational opportunities for children and by creating

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incentives for schools to achieve excellence.

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

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Tax Credit Scholarship Program is established. A student is

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eligible for a corporate income tax credit scholarship if the

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student qualifies for free or reduced-price school lunches under

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the National School Lunch Act and:

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

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the previous state fiscal year for purposes of state per-student

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funding;

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     (b)  Received a scholarship from an eligible nonprofit

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scholarship-funding organization or from the State of Florida

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during the previous school year; or

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     (c) Is eligible to enter kindergarten or first grade; or

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     (d) Is currently placed, or during the previous state

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fiscal year was placed, in foster care as defined in s. 39.01.

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Contingent upon available funds, a student may continue in the

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scholarship program as long as the student's household family

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income level does not exceed 200 percent of the federal poverty

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level. A sibling of a student who is continuing in the program

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and resides in the same household as the student shall also be

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eligible as a first-time corporate income tax credit scholarship

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recipient as long as the student's and sibling's household income

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level does not exceed 200 percent of the federal poverty level.

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Household income for purposes of a student who is currently in

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foster care as defined in s. 39.01 shall consist only of the

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income that may be considered in determining whether he or she

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qualifies for free or reduced-price school lunches under the

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National School Lunch Act.

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     (5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX CREDITS;

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LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--

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

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credits which may be granted each state fiscal year under this

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section is:

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     1. Through June 30, 2008, $88 million.

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     2. Beginning July 1, 2008, and thereafter, $118 million. At

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least 1 percent of the total statewide amount authorized for the

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tax credit shall be reserved for taxpayers who meet the

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definition of a small business provided in s. 288.703(1) at the

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time of application.

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     (6)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING

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ORGANIZATIONS.--An eligible nonprofit scholarship-funding

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organization:

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     (d)1. Must provide scholarships, from eligible

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contributions, to eligible students for the cost of:

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     a.1. Tuition and fees or textbook expenses for, or

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transportation to, an eligible private school. At least 75

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percent of the scholarship funding must be used to pay tuition

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expenses; or

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     b.2. Transportation expenses to a Florida public school

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that is located outside the district in which the student resides

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

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     2. Beginning in the 2009-2010 state fiscal year, must

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provide a premium payment to a scholarship student who

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participates in the statewide assessments pursuant to s. 1008.22

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and who attends an eligible private school that has at least 95-

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percent participation of eligible scholarship students in the

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statewide assessments. This premium payment shall be applied to

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transportation costs related to participation in the statewide

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assessments, statewide assessment preparation costs, and other

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school fees incurred by a student which are not otherwise covered

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under this paragraph.

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     (i) 1. May use up to 3 percent of eligible contributions

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received during the state fiscal year in which such contributions

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are collected for administrative expenses if the organization has

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operated under this section for at least 3 state fiscal years and

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did not have any negative financial findings in its most recent

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audit under paragraph (l). Such administrative expenses must be

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reasonable and necessary for the organization's management and

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distribution of eligible contributions under this section. No

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more than one-third of the funds authorized for administrative

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expenses under this subparagraph may be used for expenses related

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to the recruitment of contributions from corporate taxpayers.

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     2. Must expend for annual or partial-year scholarships an

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amount equal to or greater than 75 percent of the net eligible

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contributions remaining after administrative expenses during the

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state fiscal year in which such contributions are collected. No

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more than 25 percent of such net eligible contributions may be

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carried forward to the following state fiscal year. Any amounts

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carried forward shall be expended for Must obligate, in the same

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fiscal year in which the contribution was received, 100 percent

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of the eligible contribution to provide annual or partial-year

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scholarships; however, up to 25 percent of the total contribution

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may be carried forward for expenditure in the following state

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fiscal year. Net eligible contributions remaining on June 30 of

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each year which are in excess of the 25 percent that may be

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carried forward shall be returned to the State Treasury for

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deposit in the General Revenue Fund.

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     3. A scholarship-funding organization Must, before granting

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a scholarship for an academic year, document each scholarship

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student's eligibility for that academic year. A scholarship-

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funding organization may not grant multiyear scholarships in one

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approval process. No portion of eligible contributions may be

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used for administrative expenses. All interest accrued from

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contributions must be used for scholarships.

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     (m)  Must prepare and submit quarterly reports to the

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

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addition, an eligible nonprofit scholarship-funding organization

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must submit in a timely manner any information requested by the

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Department of Education relating to the scholarship program.

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Any and all information and documentation provided to the

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Department of Education and the Auditor General relating to the

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identity of a taxpayer that provides an eligible contribution

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under this section shall remain confidential at all times in

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accordance with s. 213.053.

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     (7)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM

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PARTICIPATION.--

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     (e)  The parent shall ensure that the student participating

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in the scholarship program takes the norm-referenced assessment

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offered by the private school. The parent may also choose to have

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the student participate in the statewide assessments pursuant to

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s. 1008.22. Except as provided in subsection (6), if the parent

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requests that the student participating in the scholarship

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program take statewide assessments pursuant to s. 1008.22, the

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parent is responsible for transporting the student to the

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assessment site designated by the school district.

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

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eligible private school may be sectarian or nonsectarian and

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must:

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     (c)  Be academically accountable to the parent for meeting

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the educational needs of the student by:

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

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explanation of the student's progress.

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     2.  Annually administering or making provision for students

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participating in the scholarship program to take one of the

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nationally norm-referenced tests identified by the Department of

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Education. Students with disabilities for whom standardized

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testing is not appropriate are exempt from this requirement. A

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participating private school must report a student's scores to

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the parent and to the independent research organization selected

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by the Department of Education as described in paragraph (9)(j).

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     3.  Cooperating with the scholarship student whose parent

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chooses to have the student participate in the statewide

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assessments pursuant to s. 1008.22 s. 1008.32. Beginning in the

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2009-2010 state fiscal year, in order to encourage participation,

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a scholarship student who participates in the statewide

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assessments is eligible for a premium payment pursuant to

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subparagraphs (6)(d)2. and (11)(a)2.

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The inability of a private school to meet the requirements of

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this subsection shall constitute a basis for the ineligibility of

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the private school to participate in the scholarship program as

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determined by the Department of Education.

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

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Education shall:

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     (k) Provide participating schools with all preparation and

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instructional materials to prepare students for the statewide

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assessments pursuant to s. 1008.22.

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     (l) Beginning in the 2009-2010 state fiscal year, determine

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if at least 95 percent of a private school's eligible scholarship

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students participate in the statewide assessments pursuant to s.

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1008.22.

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     (11) SCHOLARSHIP AND PREMIUM AMOUNT AND PAYMENT.--

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     (a)1. The amount of a scholarship provided to any student

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for any single school year by an eligible nonprofit scholarship-

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funding organization from eligible contributions shall be for

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total costs authorized under subparagraph (6)(d)1., not to exceed

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the following annual limits:

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     a.1. Three thousand nine hundred fifty dollars Three

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thousand seven hundred fifty dollars for a scholarship awarded to

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a student enrolled in an eligible private school for the 2008-

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2009 state fiscal year and each fiscal year thereafter.

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

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student enrolled in a Florida public school that is located

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

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school as defined in s. 1002.32.

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     2. Beginning in the 2009-2010 state fiscal year, the amount

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of an annual premium payment by an eligible nonprofit

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scholarship-funding organization from eligible contributions

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shall be $200 for costs authorized under subparagraph (6)(d)2.

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provided to a student who takes the statewide assessments

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pursuant to s. 1008.22 if at least 95 percent of the private

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school's eligible scholarship students participate in the

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statewide assessments.

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     (b) Payment of the scholarship and premium by the eligible

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nonprofit scholarship-funding organization shall be by individual

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

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chooses that his or her child attend an eligible private school,

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the warrant must be delivered by the eligible nonprofit

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scholarship-funding organization to the private school of the

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parent's choice, and the parent shall restrictively endorse the

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warrant to the private school. An eligible nonprofit scholarship-

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funding organization shall ensure that the parent to whom the

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warrant is made restrictively endorsed the warrant to the private

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school for deposit into the account of the private school.

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     (c)  An eligible nonprofit scholarship-funding organization

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shall obtain verification from the private school of a student's

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continued attendance at the school for prior to each period

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covered by a scholarship payment.

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

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eligible nonprofit scholarship-funding organization no less

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frequently than on a quarterly basis.

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     (14) PRESERVATION OF CREDIT.--If any provision or portion

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of subsection (5) or the application thereof to any person or

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circumstance is held unconstitutional by any court or is

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otherwise declared invalid, the unconstitutionality or invalidity

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shall not affect any credit earned under subsection (5) by any

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taxpayer with respect to any contribution paid to an eligible

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nonprofit scholarship-funding organization before the date of a

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determination of unconstitutionality or invalidity. Such credit

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shall be allowed at such time and in such a manner as if a

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determination of unconstitutionality or invalidity had not been

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made, provided that nothing in this subsection by itself or in

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combination with any other provision of law shall result in the

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allowance of any credit to any taxpayer in excess of one dollar

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of credit for each dollar paid to an eligible nonprofit

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scholarship-funding organization.

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     Section 2. Corporate Income Tax Credit Scholarship Program

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funding.--

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     (1) By December 1, 2008, the Office of Program Policy

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Analysis and Government Accountability shall submit a report to

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

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House of Representatives which:

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     (a) Reviews the advisability and net state fiscal impact

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of:

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     1. Increasing the maximum annual amount of credits for the

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corporate income tax permitted under s. 220.187, Florida

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Statutes, for the scholarship program.

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     2. Authorizing the use of credits for insurance premium

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taxes under chapter 624, Florida Statutes, as an additional

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source of funding for the scholarship program under s. 220.187,

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Florida Statutes.

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     (b) Provides recommendations, if warranted by the review

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under paragraph (a):

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     1. For methodologies to annually or otherwise increase the

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maximum annual amount of corporate income tax credits for

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scholarship funding.

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     2. To implement the use of insurance premium tax credits

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for scholarship funding.

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Such recommendations may only include options that will annually

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produce a neutral or positive net fiscal impact on state revenue

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and expenditures.

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     (2) The Office of Program Policy Analysis and Government

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Accountability may request that the Revenue Estimating Conference

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and the Education Estimating Conference established under s.

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216.134, Florida Statutes, evaluate its findings and

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recommendations under this section.

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     Section 3.  This act shall take effect June 30, 2008.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     Delete everything before the enacting clause

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and insert:

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A bill to be entitled

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An act relating to the Corporate Income Tax Credit

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Scholarship Program; amending s. 220.187, F.S.; providing

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legislative findings; revising program purposes; providing

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that specified students who are currently or have been in

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foster care are eligible for participation in the program;

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providing that siblings of certain students are eligible

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for participation in the program; providing income

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criteria for continuation of scholarships for students in

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foster care; revising provisions authorizing the total

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amount of tax credits that may be granted and deleting the

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reservation of a portion thereof; revising authorized uses

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of scholarship funds and providing for premium payments to

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certain students who participate in statewide assessments;

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revising provisions relating to expenditure of

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contributions received by a scholarship-funding

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organization during a state fiscal year; authorizing

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expenditure of contributions for specified administrative

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expenses by certain scholarship-funding organizations;

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providing for the annual return of specified eligible

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contributions to the State Treasury; removing parent

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responsibility for providing transportation to certain

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assessment sites; providing obligations of the Department

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of Education relating to scholarship student participation

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in statewide assessments; revising scholarship amounts and

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providing amount of premium payments; revising

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requirements relating to verification of student

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attendance for purposes of scholarship payment; providing

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for preservation of credits under certain circumstances;

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requiring the Office of Program Policy Analysis and

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Government Accountability to submit a report on funding

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for the scholarship program to the Governor and the

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Legislature; specifying report requirements; authorizing

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the Office of Program Policy Analysis and Government

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Accountability to request the Revenue Estimating

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Conference and the Education Estimating Conference to

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evaluate its findings and recommendations; providing an

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effective date.

4/28/2008  9:38:00 PM     4-08901A-08