CS/CS/HB 653

1
A bill to be entitled
2An act relating to the Corporate Income Tax Credit
3Scholarship Program; amending s. 220.187, F.S.; providing
4legislative findings; revising program purposes; providing
5that siblings of certain students are eligible for
6participation in the program; revising provisions
7authorizing the total amount of tax credits that may be
8granted and deleting the reservation of a portion thereof;
9revising authorized uses of scholarship funds; revising
10provisions relating to expenditure of contributions
11received by a scholarship-funding organization during a
12state fiscal year; authorizing expenditure of
13contributions for specified administrative expenses by
14certain scholarship-funding organizations; providing for
15the annual return of specified eligible contributions to
16the State Treasury; correcting a cross-reference; revising
17scholarship amounts and providing for adjustments in
18future scholarship amounts; revising requirements relating
19to verification of student attendance for purposes of
20scholarship payment; providing for preservation of credits
21under certain circumstances; providing an effective date.
22
23Be It Enacted by the Legislature of the State of Florida:
24
25     Section 1.  Subsections (1) and (3), paragraph (b) of
26subsection (5), paragraphs (d) and (i) of subsection (6),
27paragraph (c) of subsection (8), and paragraphs (a) and (c) of
28subsection (11) of section 220.187, Florida Statutes, are
29amended, and subsection (14) is added to that section, to read:
30     220.187  Credits for contributions to nonprofit
31scholarship-funding organizations.--
32     (1)  FINDINGS AND PURPOSE.--
33     (a)  The Legislature finds that:
34     1.  It has the inherent power to determine subjects of
35taxation for general or particular public purposes.
36     2.  Expanding educational opportunities and improving the
37quality of educational services within the state are valid
38public purposes that the Legislature may promote using its
39sovereign power to determine subjects of taxation and exemptions
40from taxation.
41     3.  Ensuring that all parents, regardless of means, may
42exercise and enjoy their basic right to educate their children
43as they see fit is a valid public purpose that the Legislature
44may promote using its sovereign power to determine subjects of
45taxation and exemptions from taxation.
46     4.  Expanded educational opportunities and the healthy
47competition they promote are critical to improving the quality
48of education in the state and to ensuring that all children
49receive the high-quality education to which they are entitled.
50     (b)  The purpose of this section is to:
51     1.(a)  Enable taxpayers to make Encourage private,
52voluntary contributions to nonprofit scholarship-funding
53organizations in order to promote the general welfare.
54     2.  Provide taxpayers who wish to help parents with limited
55resources exercise their basic right to educate their children
56as they see fit with a means to do so.
57     3.(b)  Promote the general welfare by expanding Expand
58educational opportunities for children of families that have
59limited financial resources.
60     4.(c)  Enable children in this state to achieve a greater
61level of excellence in their education.
62     5.  Improve the quality of education in this state, both by
63expanding educational opportunities for children and by creating
64incentives for schools to achieve excellence.
65     (3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
66Income Tax Credit Scholarship Program is established. A student
67is eligible for a corporate income tax credit scholarship if the
68student qualifies for free or reduced-price school lunches under
69the National School Lunch Act and:
70     (a)  Was counted as a full-time equivalent student during
71the previous state fiscal year for purposes of state per-student
72funding;
73     (b)  Received a scholarship from an eligible nonprofit
74scholarship-funding organization or from the State of Florida
75during the previous school year; or
76     (c)  Is eligible to enter kindergarten or first grade.
77
78Contingent upon available funds, a student may continue in the
79scholarship program as long as the student's household family
80income level does not exceed 200 percent of the federal poverty
81level. A sibling of a student who is continuing in the program
82and resides in the same household as the student shall also be
83eligible as a first-time corporate income tax credit scholarship
84recipient as long as the student's and sibling's household
85income level does not exceed 200 percent of the federal poverty
86level.
87     (5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
88CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
89     (b)  The total amount of tax credits and carryforward of
90tax credits which may be granted each state fiscal year under
91this section is:
92     1.  Through June 30, 2008, $88 million.
93     2.  Through June 30, 2009, $118 million.
94     3.  Through June 30, 2010, $148 million.
95     4.  Through June 30, 2011, $178 million.
96     5.  Through June 30, 2012, $208 million.
97     6.  Beginning July 1, 2012, and thereafter, $238 million.
98At least 1 percent of the total statewide amount authorized for
99the tax credit shall be reserved for taxpayers who meet the
100definition of a small business provided in s. 288.703(1) at the
101time of application.
102     (6)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
103ORGANIZATIONS.--An eligible nonprofit scholarship-funding
104organization:
105     (d)  Must provide scholarships, from eligible
106contributions, to eligible students for the cost of:
107     1.  Tuition and fees or textbook expenses for, or
108transportation to, an eligible private school. At least 75
109percent of the scholarship funding must be used to pay tuition
110expenses; or
111     2.  Transportation expenses to a Florida public school that
112is located outside the district in which the student resides or
113to a lab school as defined in s. 1002.32.
114     (i)1.  May use up to 3 percent of eligible contributions
115received during the state fiscal year in which such
116contributions are collected for administrative expenses if the
117organization has operated under this section for at least 3
118state fiscal years and did not have any negative financial
119findings in its most recent audit under paragraph (l). Such
120administrative expenses must be reasonable and necessary for the
121organization's management and distribution of eligible
122contributions under this section. No more than one-third of the
123funds authorized for administrative expenses under this
124subparagraph may be used for expenses related to the recruitment
125of contributions from corporate taxpayers.
126     2.  Must expend for annual or partial-year scholarships an
127amount equal to or greater than 75 percent of the net eligible
128contributions remaining after administrative expenses during the
129state fiscal year in which such contributions are collected. No
130more than 25 percent of such net eligible contributions may be
131carried forward to the following state fiscal year. Any amounts
132carried forward shall be expended for Must obligate, in the same
133fiscal year in which the contribution was received, 100 percent
134of the eligible contribution to provide annual or partial-year
135scholarships; however, up to 25 percent of the total
136contribution may be carried forward for expenditure in the
137following state fiscal year. Net eligible contributions
138remaining on June 30 of each year that are in excess of the 25
139percent that may be carried forward shall be returned to the
140State Treasury for deposit in the General Revenue Fund.
141     3.  A scholarship-funding organization Must, before
142granting a scholarship for an academic year, document each
143scholarship student's eligibility for that academic year. A
144scholarship-funding organization may not grant multiyear
145scholarships in one approval process. No portion of eligible
146contributions may be used for administrative expenses. All
147interest accrued from contributions must be used for
148scholarships.
149
150Any and all information and documentation provided to the
151Department of Education and the Auditor General relating to the
152identity of a taxpayer that provides an eligible contribution
153under this section shall remain confidential at all times in
154accordance with s. 213.053.
155     (8)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--An
156eligible private school may be sectarian or nonsectarian and
157must:
158     (c)  Be academically accountable to the parent for meeting
159the educational needs of the student by:
160     1.  At a minimum, annually providing to the parent a
161written explanation of the student's progress.
162     2.  Annually administering or making provision for students
163participating in the scholarship program to take one of the
164nationally norm-referenced tests identified by the Department of
165Education. Students with disabilities for whom standardized
166testing is not appropriate are exempt from this requirement. A
167participating private school must report a student's scores to
168the parent and to the independent research organization selected
169by the Department of Education as described in paragraph (9)(j).
170     3.  Cooperating with the scholarship student whose parent
171chooses to have the student participate in the statewide
172assessments pursuant to s. 1008.22 1008.32.
173
174The inability of a private school to meet the requirements of
175this subsection shall constitute a basis for the ineligibility
176of the private school to participate in the scholarship program
177as determined by the Department of Education.
178     (11)  SCHOLARSHIP AMOUNT AND PAYMENT.--
179     (a)  The amount of a scholarship provided to any student
180for any single school year by an eligible nonprofit scholarship-
181funding organization from eligible contributions shall be for
182total costs authorized under paragraph (6)(d), not to exceed the
183following annual limits:
184     1. Three thousand seven hundred fifty dollars For a
185scholarship awarded to a student enrolled in an eligible private
186school:
187     a.  Three thousand nine hundred fifty dollars during the
1882008-2009 state fiscal year.
189     b.  Sixty percent of the statewide average total funds per
190unweighted full-time equivalent funding amount as determined in
191the Florida Education Finance Program calculation that is
192incorporated by reference in the General Appropriations Act, or
193any subsequent special appropriations act, for the 2009-2010
194state fiscal year and each state fiscal year thereafter.
195     2.  Five hundred dollars for a scholarship awarded to a
196student enrolled in a Florida public school that is located
197outside the district in which the student resides or in a lab
198school as defined in s. 1002.32.
199     (c)  An eligible nonprofit scholarship-funding organization
200shall obtain verification from the private school of a student's
201continued attendance at the school for prior to each period
202covered by a scholarship payment.
203     (14)  PRESERVATION OF CREDIT.--If any provision or portion
204of subsection (5) or the application thereof to any person or
205circumstance is held unconstitutional by any court or is
206otherwise declared invalid, the unconstitutionality or
207invalidity shall not affect any credit earned under subsection
208(5) by any taxpayer with respect to any contribution paid to an
209eligible nonprofit scholarship-funding organization before the
210date of a determination of unconstitutionality or invalidity.
211Such credit shall be allowed at such time and in such a manner
212as if a determination of unconstitutionality or invalidity had
213not been made, provided that nothing in this subsection by
214itself or in combination with any other provision of law shall
215result in the allowance of any credit to any taxpayer in excess
216of one dollar of credit for each dollar paid to an eligible
217nonprofit scholarship-funding organization.
218     Section 2.  This act shall take effect June 30, 2008.


CODING: Words stricken are deletions; words underlined are additions.