Florida Senate - 2009 SB 1310
By Senator Gardiner
9-00841A-09 20091310__
1 A bill to be entitled
2 An act relating to tax credits for contributions to
3 nonprofit scholarship-funding organizations; creating
4 s. 212.099, F.S.; providing for credits against the
5 sales and use tax for contributions to certain
6 eligible nonprofit scholarship-funding organizations;
7 providing application; amending s. 220.187, F.S.;
8 defining the term “direct certification list”;
9 expanding the Corporate Income Tax Credit Scholarship
10 Program to include sales and use tax credits and
11 insurance premium tax credits; revising credits for
12 contributions to nonprofit scholarship-funding
13 organizations; specifying that a taxpayer's use of the
14 credit doesn't reduce alternative minimum tax credits;
15 providing that certain taxes are not state funds or
16 revenues of the state or held in trust for the state;
17 specifying Department of Education tax credit
18 scholarship notification requirements; specifying
19 notice requirements and limitations; imposing
20 additional requirement upon the Department of
21 Education; conforming cross-references; creating s.
22 624.51055, F.S.; providing for credits against the
23 insurance premium tax for contributions to certain
24 eligible nonprofit scholarship-funding organizations;
25 providing application; amending ss. 1002.20, 1002.23,
26 1002.39, and 1002.421, F.S.; providing conforming
27 revisions; providing an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Section 212.099, Florida Statutes, is created to
32 read:
33 212.099 Credit for contributions to eligible nonprofit
34 scholarship-funding organizations.—
35 (1) Persons who are registered with the department under s.
36 212.18 to collect or remit sales or use tax and who must make
37 estimated tax payments under s. 212.11(4)(a) and who make an
38 eligible contribution to an eligible nonprofit scholarship
39 funding organization as provided in s. 220.187 are allowed a
40 credit of 100 percent of the eligible contribution against any
41 estimated state sales tax payment. However, such a credit may
42 not exceed 75 percent of the tax due. This credit shall be taken
43 on the return for the month following the month in which the
44 eligible contribution is received by the nonprofit scholarship
45 funding organization.
46 (2) The provisions of s. 220.187 apply to the credit
47 authorized by this section.
48 Section 2. Subsections (2) and (3), paragraphs (b) and (i)
49 of subsection (6), and paragraphs (a), (b), (l), and (n) of
50 subsection (9) of section 220.187, Florida Statutes, are
51 amended, paragraphs (e) and (f) are added to subsection (5) of
52 that section, and paragraphs (o) and (p) are added to subsection
53 (9) of that section, to read:
54 220.187 Credits for contributions to nonprofit scholarship
55 funding organizations.—
56 (2) DEFINITIONS.—As used in this section, the term:
57 (a) “Department” means the Department of Revenue.
58 (b) “Direct certification list” means the certified list of
59 children who qualify for the Food Stamp Program, the Temporary
60 Assistance to Needy Families Program, or the Food Distribution
61 Program on Indian Reservations provided to the Department of
62 Education by the Department of Children and Family Services.
63 (c)(b) “Eligible contribution” means a monetary
64 contribution from a taxpayer, subject to the restrictions
65 provided in this section, to an eligible nonprofit scholarship
66 funding organization. The taxpayer making the contribution may
67 not designate a specific child as the beneficiary of the
68 contribution.
69 (d)(c) “Eligible nonprofit scholarship-funding
70 organization” means a charitable organization that:
71 1. Is exempt from federal income tax pursuant to s.
72 501(c)(3) of the Internal Revenue Code;
73 2. Is a Florida entity formed under chapter 607, chapter
74 608, or chapter 617 and whose principal office is located in the
75 state; and
76 3. Complies with the provisions of subsection (6).
77 (e)(d) “Eligible private school” means a private school, as
78 defined in s. 1002.01(2), located in Florida which offers an
79 education to students in any grades K-12 and that meets the
80 requirements in subsection (8).
81 (f)(e) “Owner or operator” includes:
82 1. An owner, president, officer, or director of an eligible
83 nonprofit scholarship-funding organization or a person with
84 equivalent decisionmaking authority over an eligible nonprofit
85 scholarship-funding organization.
86 2. An owner, operator, superintendent, or principal of an
87 eligible private school or a person with equivalent
88 decisionmaking authority over an eligible private school.
89 (3) PROGRAM; SCHOLARSHIP ELIGIBILITY.—The Florida Corporate
90 Income Tax Credit Scholarship Program is established. A student
91 is eligible for a Florida corporate income tax credit
92 scholarship under this section, s. 212.099, or s. 624.51055 if
93 the student qualifies for free or reduced-price school lunches
94 under the National School Lunch Act or is on the direct
95 certification list and:
96 (a) Was counted as a full-time equivalent student during
97 the previous state fiscal year for purposes of state per-student
98 funding;
99 (b) Received a scholarship from an eligible nonprofit
100 scholarship-funding organization or from the State of Florida
101 during the previous school year;
102 (c) Is eligible to enter kindergarten or first grade; or
103 (d) Is currently placed, or during the previous state
104 fiscal year was placed, in foster care as defined in s. 39.01.
105 Contingent upon available funds, a student may continue in the
106 scholarship program as long as the student's household income
107 level does not exceed 200 percent of the federal poverty level.
108 A sibling of a student who is continuing in the program and
109 resides in the same household as the student shall also be
110 eligible as a first-time corporate income tax credit scholarship
111 recipient as long as the student's and sibling's household
112 income level does not exceed 200 percent of the federal poverty
113 level. Household income for purposes of a student who is
114 currently in foster care as defined in s. 39.01 shall consist
115 only of the income that may be considered in determining whether
116 he or she qualifies for free or reduced-price school lunches
117 under the National School Lunch Act.
118 (5) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX CREDITS;
119 LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.—
120 (e) A taxpayer's use of the credit granted pursuant to this
121 section does not reduce the amount of any credit available to
122 such taxpayer under s. 220.186.
123 (f) Notwithstanding the provisions of ss. 212.15 and 212.06
124 or any other provision of chapter 212, taxes remitted pursuant
125 to chapter 212 against which a credit is taken pursuant to this
126 section are not state funds or revenue of the state or otherwise
127 held in trust for the state.
128 (6) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
129 ORGANIZATIONS.—An eligible nonprofit scholarship-funding
130 organization:
131 (b) Must comply with the following background check
132 requirements:
133 1. All owners and operators as defined in subparagraph
134 (2)(f)(e)1. are, upon employment or engagement to provide
135 services, subject to level 2 background screening as provided
136 under chapter 435. The fingerprints for the background screening
137 must be electronically submitted to the Department of Law
138 Enforcement and can be taken by an authorized law enforcement
139 agency or by an employee of the eligible nonprofit scholarship
140 funding organization or a private company who is trained to take
141 fingerprints. However, the complete set of fingerprints of an
142 owner or operator may not be taken by the owner or operator. The
143 results of the state and national criminal history check shall
144 be provided to the Department of Education for screening under
145 chapter 435. The cost of the background screening may be borne
146 by the eligible nonprofit scholarship-funding organization or
147 the owner or operator.
148 2. Every 5 years following employment or engagement to
149 provide services or association with an eligible nonprofit
150 scholarship-funding organization, each owner or operator must
151 meet level 2 screening standards as described in s. 435.04, at
152 which time the nonprofit scholarship-funding organization shall
153 request the Department of Law Enforcement to forward the
154 fingerprints to the Federal Bureau of Investigation for level 2
155 screening. If the fingerprints of an owner or operator are not
156 retained by the Department of Law Enforcement under subparagraph
157 3., the owner or operator must electronically file a complete
158 set of fingerprints with the Department of Law Enforcement. Upon
159 submission of fingerprints for this purpose, the eligible
160 nonprofit scholarship-funding organization shall request that
161 the Department of Law Enforcement forward the fingerprints to
162 the Federal Bureau of Investigation for level 2 screening, and
163 the fingerprints shall be retained by the Department of Law
164 Enforcement under subparagraph 3.
165 3. Beginning July 1, 2007, all fingerprints submitted to
166 the Department of Law Enforcement as required by this paragraph
167 must be retained by the Department of Law Enforcement in a
168 manner approved by rule and entered in the statewide automated
169 fingerprint identification system authorized by s. 943.05(2)(b).
170 The fingerprints must thereafter be available for all purposes
171 and uses authorized for arrest fingerprint cards entered in the
172 statewide automated fingerprint identification system pursuant
173 to s. 943.051.
174 4. Beginning July 1, 2007, the Department of Law
175 Enforcement shall search all arrest fingerprint cards received
176 under s. 943.051 against the fingerprints retained in the
177 statewide automated fingerprint identification system under
178 subparagraph 3. Any arrest record that is identified with an
179 owner's or operator's fingerprints must be reported to the
180 Department of Education. The Department of Education shall
181 participate in this search process by paying an annual fee to
182 the Department of Law Enforcement and by informing the
183 Department of Law Enforcement of any change in the employment,
184 engagement, or association status of the owners or operators
185 whose fingerprints are retained under subparagraph 3. The
186 Department of Law Enforcement shall adopt a rule setting the
187 amount of the annual fee to be imposed upon the Department of
188 Education for performing these services and establishing the
189 procedures for the retention of owner and operator fingerprints
190 and the dissemination of search results. The fee may be borne by
191 the owner or operator of the nonprofit scholarship-funding
192 organization.
193 5. A nonprofit scholarship-funding organization whose owner
194 or operator fails the level 2 background screening shall not be
195 eligible to provide scholarships under this section.
196 6. A nonprofit scholarship-funding organization whose owner
197 or operator in the last 7 years has filed for personal
198 bankruptcy or corporate bankruptcy in a corporation of which he
199 or she owned more than 20 percent shall not be eligible to
200 provide scholarships under this section.
201 (i)1. May use up to 3 percent of eligible contributions
202 received during the state fiscal year in which such
203 contributions are collected for administrative expenses if the
204 organization has operated under this section for at least 3
205 state fiscal years and did not have any negative financial
206 findings in its most recent audit under paragraph (l). Such
207 administrative expenses must be reasonable and necessary for the
208 organization's management and distribution of eligible
209 contributions under this section. No more than one-third of the
210 funds authorized for administrative expenses under this
211 subparagraph may be used for expenses related to the recruitment
212 of contributions from corporate taxpayers.
213 2. Must expend for annual or partial-year scholarships an
214 amount equal to or greater than 75 percent of the net eligible
215 contributions remaining after administrative expenses during the
216 state fiscal year in which such contributions are collected. No
217 more than 25 percent of such net eligible contributions may be
218 carried forward to the following state fiscal year. Any amounts
219 carried forward shall be expended for annual or partial-year
220 scholarships in the following state fiscal year. Net eligible
221 contributions remaining on June 30 of each year that are in
222 excess of the 25 percent that may be carried forward shall be
223 returned to the State Treasury for deposit in the General
224 Revenue Fund.
225 3. Must, before granting a scholarship for an academic
226 year, document each scholarship student's eligibility for that
227 academic year. A scholarship-funding organization may not grant
228 multiyear scholarships in one approval process.
229 Any and all information and documentation provided to the
230 Department of Education and the Auditor General relating to the
231 identity of a taxpayer that provides an eligible contribution
232 under this section shall remain confidential at all times in
233 accordance with s. 213.053.
234 (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of
235 Education shall:
236 (a) Annually submit to the department, by March 15, a list
237 of eligible nonprofit scholarship-funding organizations that
238 meet the requirements of paragraph (2)(d)(c).
239 (b) Annually verify the eligibility of nonprofit
240 scholarship-funding organizations that meet the requirements of
241 paragraph (2)(d)(c).
242 (l) Notify an eligible nonprofit scholarship-funding
243 organization of any of the organization's identified students
244 who are receiving corporate income tax credit scholarships from
245 other eligible nonprofit scholarship-funding organizations.
246 (n)1. Conduct random site visits to private schools
247 participating in the Florida Corporate Tax Credit Scholarship
248 Program. The purpose of the site visits is solely to verify the
249 information reported by the schools concerning the enrollment
250 and attendance of students, the credentials of teachers,
251 background screening of teachers, and teachers' fingerprinting
252 results. The Department of Education may not make more than
253 seven random site visits each year and may not make more than
254 one random site visit each year to the same private school.
255 2. Annually, by December 15, report to the Governor, the
256 President of the Senate, and the Speaker of the House of
257 Representatives the Department of Education's actions with
258 respect to implementing accountability in the scholarship
259 program under this section and s. 1002.421, any substantiated
260 allegations or violations of law or rule by an eligible private
261 school under this program concerning the enrollment and
262 attendance of students, the credentials of teachers, background
263 screening of teachers, and teachers' fingerprinting results and
264 the corrective action taken by the Department of Education.
265 (o) Upon the request of any nonprofit scholarship-funding
266 organization eligible to receive the 3-percent administrative
267 allowance under paragraph (6)(i), the Department of Education
268 shall inform all households receiving free or reduced-priced
269 meals under the National School Lunch Act of their eligibility
270 to apply for a tax credit scholarship. The form of such notice
271 shall be provided by the eligible nonprofit scholarship-funding
272 organization and the department shall include the provided form,
273 if requested by the organization, in any normal correspondence
274 with eligible households. If an eligible nonprofit scholarship
275 funding organization requests a special communication to be
276 issued, the organization shall reimburse the department for the
277 cost of postage. Such notice is limited to once a year.
278 (p) Provide the direct certification list to any nonprofit
279 scholarship-funding organization eligible to receive the 3
280 percent administrative allowance under paragraph (6)(i) upon
281 request.
282 Section 3. Section 624.51055, Florida Statutes, is created
283 to read:
284 624.51055 Credit for contributions to eligible nonprofit
285 scholarship-funding organizations.—
286 (1) There is allowed a credit of 100 percent of an eligible
287 contribution made to an eligible nonprofit scholarship-funding
288 organization as provided in s. 220.187 against any tax due for a
289 taxable year under this chapter. However, such a credit may not
290 exceed 75 percent of the tax due under s. 624.509(1) after
291 deducting from such tax due the taxes paid by the insurer under
292 ss. 175.101 and 185.08 and any assessments pursuant to s.
293 440.51. An insurer claiming a credit against premium tax
294 liability under this section shall not be required to pay any
295 additional retaliatory tax levied pursuant to s. 624.509(1) as a
296 result of claiming such credit. Section 624.509(1) does not
297 limit such credit in any manner.
298 (2) The provisions of s. 220.187 apply to the credit
299 authorized by this section.
300 Section 4. Paragraph (b) of subsection (6) of section
301 1002.20, Florida Statutes, is amended to read:
302 1002.20 K-12 student and parent rights.—Parents of public
303 school students must receive accurate and timely information
304 regarding their child's academic progress and must be informed
305 of ways they can help their child to succeed in school. K-12
306 students and their parents are afforded numerous statutory
307 rights including, but not limited to, the following:
308 (6) EDUCATIONAL CHOICE.—
309 (b) Private school choices.—Parents of public school
310 students may seek private school choice options under certain
311 programs.
312 1. Under the Opportunity Scholarship Program, the parent of
313 a student in a failing public school may request and receive an
314 opportunity scholarship for the student to attend a private
315 school in accordance with the provisions of s. 1002.38.
316 2. Under the McKay Scholarships for Students with
317 Disabilities Program, the parent of a public school student with
318 a disability who is dissatisfied with the student's progress may
319 request and receive a McKay Scholarship for the student to
320 attend a private school in accordance with the provisions of s.
321 1002.39.
322 3. Under the Florida corporate income Tax Credit
323 Scholarship Program provided for in s. 220.187, the parent of a
324 student who qualifies for free or reduced-price school lunch may
325 seek a scholarship from an eligible nonprofit scholarship
326 funding organization in accordance with the provisions of s.
327 220.187.
328 Section 5. Subsection (2) of section 1002.23, Florida
329 Statutes, is amended to read:
330 1002.23 Family and School Partnership for Student
331 Achievement Act.—
332 (2) To facilitate meaningful parent and family involvement,
333 the Department of Education shall develop guidelines for a
334 parent guide to successful student achievement which describes
335 what parents need to know about their child's educational
336 progress and how they can help their child to succeed in school.
337 The guidelines shall include, but need not be limited to:
338 (a) Parental information regarding:
339 1. Requirements for their child to be promoted to the next
340 grade, as provided for in s. 1008.25;
341 2. Progress of their child toward achieving state and
342 district expectations for academic proficiency;
343 3. Assessment results, including report cards and progress
344 reports;
345 4. Qualifications of their child's teachers; and
346 5. School entry requirements, including required
347 immunizations and the recommended immunization schedule;
348 (b) Services available for parents and their children, such
349 as family literacy services; mentoring, tutorial, and other
350 academic reinforcement programs; college planning, academic
351 advisement, and student counseling services; and after-school
352 programs;
353 (c) Opportunities for parental participation, such as
354 parenting classes, adult education, school advisory councils,
355 and school volunteer programs;
356 (d) Opportunities for parents to learn about rigorous
357 academic programs that may be available for their child, such as
358 honors programs, dual enrollment, advanced placement,
359 International Baccalaureate, International General Certificate
360 of Secondary Education (pre-AICE), Advanced International
361 Certificate of Education, Florida Virtual High School courses,
362 and accelerated access to postsecondary education;
363 (e) Educational choices, as provided for in s. 1002.20(6),
364 and Florida corporate income tax credit scholarships, as
365 provided for in s. 220.187;
366 (f) Classroom and test accommodations available for
367 students with disabilities;
368 (g) School board rules, policies, and procedures for
369 student promotion and retention, academic standards, student
370 assessment, courses of study, instructional materials, and
371 contact information for school and district offices; and
372 (h) Resources for information on student health and other
373 available resources for parents.
374 Section 6. Subsection (3) of section 1002.39, Florida
375 Statutes, is amended to read:
376 1002.39 The John M. McKay Scholarships for Students with
377 Disabilities Program.—There is established a program that is
378 separate and distinct from the Opportunity Scholarship Program
379 and is named the John M. McKay Scholarships for Students with
380 Disabilities Program.
381 (3) JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.—A student is
382 not eligible for a John M. McKay Scholarship while he or she is:
383 (a) Enrolled in a school operating for the purpose of
384 providing educational services to youth in Department of
385 Juvenile Justice commitment programs;
386 (b) Receiving a Florida corporate income tax credit
387 scholarship under s. 220.187;
388 (c) Receiving an educational scholarship pursuant to this
389 chapter;
390 (d) Participating in a home education program as defined in
391 s. 1002.01(1);
392 (e) Participating in a private tutoring program pursuant to
393 s. 1002.43;
394 (f) Participating in a virtual school, correspondence
395 school, or distance learning program that receives state funding
396 pursuant to the student's participation unless the participation
397 is limited to no more than two courses per school year;
398 (g) Enrolled in the Florida School for the Deaf and the
399 Blind; or
400 (h) Not having regular and direct contact with his or her
401 private school teachers at the school's physical location.
402 Section 7. Subsection (1) of section 1002.421, Florida
403 Statutes, is amended to read:
404 1002.421 Accountability of private schools participating in
405 state school choice scholarship programs.—
406 (1) A Florida private school participating in the Florida
407 Corporate Income Tax Credit Scholarship Program established
408 pursuant to s. 220.187 or an educational scholarship program
409 established pursuant to this chapter must comply with all
410 requirements of this section in addition to private school
411 requirements outlined in s. 1002.42, specific requirements
412 identified within respective scholarship program laws, and other
413 provisions of Florida law that apply to private schools.
414 Section 8. This act shall take effect July 1, 2009.