CS/HB 453

1	A bill to be entitled
2	An act relating to tax credits for contributions to
3	nonprofit scholarship-funding organizations; amending s.
4	220.186, F.S.; providing that the credit authorized under
5	the Florida Tax Credit Scholarship Program does not apply
6	to the credit for the Florida alternative minimum tax;
7	amending s. 220.187, F.S.; defining the term "direct
8	certification list"; expanding the Corporate Income Tax
9	Credit Scholarship Program to include insurance premium
10	tax credits; revising credits for contributions to
11	nonprofit scholarship-funding organizations; providing
12	that a taxpayer eligible to receive a credit against the
13	insurance premium tax is not eligible to receive a credit
14	against the corporate income tax; imposing an additional
15	requirement on the Department of Education; specifying
16	school district tax credit scholarship notification
17	requirements and limitations; conforming cross-references;
18	creating s. 624.51055, F.S.; providing for credits against
19	the insurance premium tax for contributions to certain
20	eligible nonprofit scholarship-funding organizations;
21	providing application; amending ss. 1002.20, 1002.23,
22	1002.39, and 1002.421, F.S.; providing conforming
23	revisions; providing severability; providing an effective
24	date.
25
26	Be It Enacted by the Legislature of the State of Florida:
27
28	Section 1.  Subsection (2) of section 220.186, Florida
29	Statutes, is amended to read:
30	220.186  Credit for Florida alternative minimum tax.--
31	(2)  The credit pursuant to this section shall be the
32	amount of the excess, if any, of the tax paid based upon taxable
33	income determined pursuant to s. 220.13(2)(k) over the amount of
34	tax which would have been due based upon taxable income without
35	application of s. 220.13(2)(k), before application of this
36	credit without application of any credit under s. 220.187.
37	Section 2.  Subsections (2) and (3), paragraph (b) of
38	subsection (5), paragraphs (b) and (i) of subsection (6), and
39	paragraphs (a), (b), (l), and (n) of subsection (9) of section
40	220.187, Florida Statutes, are amended, paragraph (e) is added
41	to subsection (5) of that section, paragraph (o) is added to
42	subsection (9) of that section, subsections (10) through (14) of
43	that section are renumbered as subsections (11) through (15),
44	respectively, and a new subsection (10) is added to that
45	section, to read:
46	220.187  Credits for contributions to nonprofit
47	scholarship-funding organizations.--
48	(2)  DEFINITIONS.--As used in this section, the term:
49	(a)  "Department" means the Department of Revenue.
50	(b)  "Direct certification list" means the certified list
51	of children who qualify for the Food Stamp Program, the
52	Temporary Assistance to Needy Families Program, or the Food
53	Distribution Program on Indian Reservations provided to the
54	Department of Education by the Department of Children and Family
55	Services.
56	(c)(b)  "Eligible contribution" means a monetary
57	contribution from a taxpayer, subject to the restrictions
58	provided in this section, to an eligible nonprofit scholarship-
59	funding organization. The taxpayer making the contribution may
60	not designate a specific child as the beneficiary of the
61	contribution.
62	(d)(c)  "Eligible nonprofit scholarship-funding
63	organization" means a charitable organization that:
64	1.  Is exempt from federal income tax pursuant to s.
65	501(c)(3) of the Internal Revenue Code;
66	2.  Is a Florida entity formed under chapter 607, chapter
67	608, or chapter 617 and whose principal office is located in the
68	state; and
69	3.  Complies with the provisions of subsection (6).
70	(e)(d)  "Eligible private school" means a private school,
71	as defined in s. 1002.01(2), located in Florida which offers an
72	education to students in any grades K-12 and that meets the
73	requirements in subsection (8).
74	(f)(e)  "Owner or operator" includes:
75	1.  An owner, president, officer, or director of an
76	eligible nonprofit scholarship-funding organization or a person
77	with equivalent decisionmaking authority over an eligible
78	nonprofit scholarship-funding organization.
79	2.  An owner, operator, superintendent, or principal of an
80	eligible private school or a person with equivalent
81	decisionmaking authority over an eligible private school.
82	(3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Florida
83	Corporate Income Tax Credit Scholarship Program is established.
84	A student is eligible for a Florida corporate income tax credit
85	scholarship under this section or s. 624.51055 if the student
86	qualifies for free or reduced-price school lunches under the
87	National School Lunch Act or is on the direct certification list
88	and:
89	(a)  Was counted as a full-time equivalent student during
90	the previous state fiscal year for purposes of state per-student
91	funding;
92	(b)  Received a scholarship from an eligible nonprofit
93	scholarship-funding organization or from the State of Florida
94	during the previous school year;
95	(c)  Is eligible to enter kindergarten or first grade; or
96	(d)  Is currently placed, or during the previous state
97	fiscal year was placed, in foster care as defined in s. 39.01.
98
99	Contingent upon available funds, a student may continue in the
100	scholarship program as long as the student's household income
101	level does not exceed 200 percent of the federal poverty level.
102	A sibling of a student who is continuing in the program and
103	resides in the same household as the student shall also be
104	eligible as a first-time corporate income tax credit scholarship
105	recipient as long as the student's and sibling's household
106	income level does not exceed 200 percent of the federal poverty
107	level. Household income for purposes of a student who is
108	currently in foster care as defined in s. 39.01 shall consist
109	only of the income that may be considered in determining whether
110	he or she qualifies for free or reduced-price school lunches
111	under the National School Lunch Act.
112	(5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
113	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
114	(b)  For each state fiscal year, the total amount of tax
115	credits and carryforward of tax credits which may be granted
116	each state fiscal year under this section and s. 624.51055 is:
117	1.  Through June 30, 2008, $88 million.
118	2.  Beginning July 1, 2008, and thereafter, $118 million.
119	(e)  A taxpayer who is eligible to receive the credit
120	provided for in s. 624.51055 is not eligible to receive the
121	credit provided by this section.
122	(6)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
123	ORGANIZATIONS.--An eligible nonprofit scholarship-funding
124	organization:
125	(b)  Must comply with the following background check
126	requirements:
127	1.  All owners and operators as defined in subparagraph
128	(2)(f)(e)1. are, upon employment or engagement to provide
129	services, subject to level 2 background screening as provided
130	under chapter 435. The fingerprints for the background screening
131	must be electronically submitted to the Department of Law
132	Enforcement and can be taken by an authorized law enforcement
133	agency or by an employee of the eligible nonprofit scholarship-
134	funding organization or a private company who is trained to take
135	fingerprints. However, the complete set of fingerprints of an
136	owner or operator may not be taken by the owner or operator. The
137	results of the state and national criminal history check shall
138	be provided to the Department of Education for screening under
139	chapter 435. The cost of the background screening may be borne
140	by the eligible nonprofit scholarship-funding organization or
141	the owner or operator.
142	2.  Every 5 years following employment or engagement to
143	provide services or association with an eligible nonprofit
144	scholarship-funding organization, each owner or operator must
145	meet level 2 screening standards as described in s. 435.04, at
146	which time the nonprofit scholarship-funding organization shall
147	request the Department of Law Enforcement to forward the
148	fingerprints to the Federal Bureau of Investigation for level 2
149	screening. If the fingerprints of an owner or operator are not
150	retained by the Department of Law Enforcement under subparagraph
151	3., the owner or operator must electronically file a complete
152	set of fingerprints with the Department of Law Enforcement. Upon
153	submission of fingerprints for this purpose, the eligible
154	nonprofit scholarship-funding organization shall request that
155	the Department of Law Enforcement forward the fingerprints to
156	the Federal Bureau of Investigation for level 2 screening, and
157	the fingerprints shall be retained by the Department of Law
158	Enforcement under subparagraph 3.
159	3.  Beginning July 1, 2007, all fingerprints submitted to
160	the Department of Law Enforcement as required by this paragraph
161	must be retained by the Department of Law Enforcement in a
162	manner approved by rule and entered in the statewide automated
163	fingerprint identification system authorized by s. 943.05(2)(b).
164	The fingerprints must thereafter be available for all purposes
165	and uses authorized for arrest fingerprint cards entered in the
166	statewide automated fingerprint identification system pursuant
167	to s. 943.051.
168	4.  Beginning July 1, 2007, the Department of Law
169	Enforcement shall search all arrest fingerprint cards received
170	under s. 943.051 against the fingerprints retained in the
171	statewide automated fingerprint identification system under
172	subparagraph 3. Any arrest record that is identified with an
173	owner's or operator's fingerprints must be reported to the
174	Department of Education. The Department of Education shall
175	participate in this search process by paying an annual fee to
176	the Department of Law Enforcement and by informing the
177	Department of Law Enforcement of any change in the employment,
178	engagement, or association status of the owners or operators
179	whose fingerprints are retained under subparagraph 3. The
180	Department of Law Enforcement shall adopt a rule setting the
181	amount of the annual fee to be imposed upon the Department of
182	Education for performing these services and establishing the
183	procedures for the retention of owner and operator fingerprints
184	and the dissemination of search results. The fee may be borne by
185	the owner or operator of the nonprofit scholarship-funding
186	organization.
187	5.  A nonprofit scholarship-funding organization whose
188	owner or operator fails the level 2 background screening shall
189	not be eligible to provide scholarships under this section.
190	6.  A nonprofit scholarship-funding organization whose
191	owner or operator in the last 7 years has filed for personal
192	bankruptcy or corporate bankruptcy in a corporation of which he
193	or she owned more than 20 percent shall not be eligible to
194	provide scholarships under this section.
195	(i)1.  May use up to 3 percent of eligible contributions
196	received during the state fiscal year in which such
197	contributions are collected for administrative expenses if the
198	organization has operated under this section for at least 3
199	state fiscal years and did not have any negative financial
200	findings in its most recent audit under paragraph (l). Such
201	administrative expenses must be reasonable and necessary for the
202	organization's management and distribution of eligible
203	contributions under this section. No more than one-third of the
204	funds authorized for administrative expenses under this
205	subparagraph may be used for expenses related to the recruitment
206	of contributions from corporate taxpayers.
207	2.  Must expend for annual or partial-year scholarships an
208	amount equal to or greater than 75 percent of the net eligible
209	contributions remaining after administrative expenses during the
210	state fiscal year in which such contributions are collected. No
211	more than 25 percent of such net eligible contributions may be
212	carried forward to the following state fiscal year. Any amounts
213	carried forward shall be expended for annual or partial-year
214	scholarships in the following state fiscal year. Net eligible
215	contributions remaining on June 30 of each year that are in
216	excess of the 25 percent that may be carried forward shall be
217	returned to the State Treasury for deposit in the General
218	Revenue Fund.
219	3.  Must, before granting a scholarship for an academic
220	year, document each scholarship student's eligibility for that
221	academic year. A scholarship-funding organization may not grant
222	multiyear scholarships in one approval process.
223
224	Any and all information and documentation provided to the
225	Department of Education and the Auditor General relating to the
226	identity of a taxpayer that provides an eligible contribution
227	under this section shall remain confidential at all times in
228	accordance with s. 213.053.
229	(9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The Department
230	of Education shall:
231	(a)  Annually submit to the department, by March 15, a list
232	of eligible nonprofit scholarship-funding organizations that
233	meet the requirements of paragraph (2)(d)(c).
234	(b)  Annually verify the eligibility of nonprofit
235	scholarship-funding organizations that meet the requirements of
236	paragraph (2)(d)(c).
237	(l)  Notify an eligible nonprofit scholarship-funding
238	organization of any of the organization's identified students
239	who are receiving corporate income tax credit scholarships from
240	other eligible nonprofit scholarship-funding organizations.
241	(n)1.  Conduct random site visits to private schools
242	participating in the Florida Corporate Tax Credit Scholarship
243	Program. The purpose of the site visits is solely to verify the
244	information reported by the schools concerning the enrollment
245	and attendance of students, the credentials of teachers,
246	background screening of teachers, and teachers' fingerprinting
247	results. The Department of Education may not make more than
248	seven random site visits each year and may not make more than
249	one random site visit each year to the same private school.
250	2.  Annually, by December 15, report to the Governor, the
251	President of the Senate, and the Speaker of the House of
252	Representatives the Department of Education's actions with
253	respect to implementing accountability in the scholarship
254	program under this section and s. 1002.421, any substantiated
255	allegations or violations of law or rule by an eligible private
256	school under this program concerning the enrollment and
257	attendance of students, the credentials of teachers, background
258	screening of teachers, and teachers' fingerprinting results and
259	the corrective action taken by the Department of Education.
260	(o)  Provide a process to match the direct certification
261	list with the scholarship application data submitted by any
262	nonprofit scholarship-funding organization eligible to receive
263	the 3-percent administrative allowance under paragraph (6)(i).
264	(10)  SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.--Upon
265	the request of any eligible nonprofit scholarship-funding
266	organization, a school district shall inform all households
267	within the district receiving free or reduced-priced meals under
268	the National School Lunch Act of their eligibility to apply for
269	a tax credit scholarship. The form of such notice shall be
270	provided by the eligible nonprofit scholarship-funding
271	organization and the district shall include the provided form,
272	if requested by the organization, in any normal correspondence
273	with eligible households. If an eligible nonprofit scholarship-
274	funding organization requests a special communication to be
275	issued to households within the district receiving free or
276	reduced-price meals under the National School Lunch Act, the
277	organization shall reimburse the district for the cost of
278	postage. Such notice is limited to once a year.
279	Section 3.  Section 624.51055, Florida Statutes, is created
280	to read:
281	624.51055  Credit for contributions to eligible nonprofit
282	scholarship-funding organizations.--
283	(1)  There is allowed a credit of 100 percent of an
284	eligible contribution made to an eligible nonprofit scholarship-
285	funding organization as provided in s. 220.187 against any net
286	tax due for a taxable year under s. 624.509(1). However, such a
287	credit may not exceed 75 percent of the net tax due under s.
288	624.509(1) after deducting from such tax due the taxes paid by
289	the insurer under ss. 175.101 and 185.08 and any assessments
290	pursuant to s. 440.51. An insurer claiming a credit against
291	premium tax liability under this section shall not be required
292	to pay any additional retaliatory tax levied pursuant to s.
293	624.5091 as a result of claiming such credit. Section 624.5091
294	does not limit such credit in any manner.
295	(2)  The provisions of s. 220.187 apply to the credit
296	authorized by this section.
297	Section 4.  Paragraph (b) of subsection (6) of section
298	1002.20, Florida Statutes, is amended to read:
299	1002.20  K-12 student and parent rights.--Parents of public
300	school students must receive accurate and timely information
301	regarding their child's academic progress and must be informed
302	of ways they can help their child to succeed in school. K-12
303	students and their parents are afforded numerous statutory
304	rights including, but not limited to, the following:
305	(6)  EDUCATIONAL CHOICE.--
306	(b)  Private school choices.--Parents of public school
307	students may seek private school choice options under certain
308	programs.
309	1.  Under the Opportunity Scholarship Program, the parent
310	of a student in a failing public school may request and receive
311	an opportunity scholarship for the student to attend a private
312	school in accordance with the provisions of s. 1002.38.
313	2.  Under the McKay Scholarships for Students with
314	Disabilities Program, the parent of a public school student with
315	a disability who is dissatisfied with the student's progress may
316	request and receive a McKay Scholarship for the student to
317	attend a private school in accordance with the provisions of s.
318	1002.39.
319	3.  Under the Florida corporate income Tax Credit
320	Scholarship Program, the parent of a student who qualifies for
321	free or reduced-price school lunch may seek a scholarship from
322	an eligible nonprofit scholarship-funding organization in
323	accordance with the provisions of s. 220.187.
324	Section 5.  Paragraph (e) of subsection (2) of section
325	1002.23, Florida Statutes, is amended to read:
326	1002.23  Family and School Partnership for Student
327	Achievement Act.--
328	(2)  To facilitate meaningful parent and family
329	involvement, the Department of Education shall develop
330	guidelines for a parent guide to successful student achievement
331	which describes what parents need to know about their child's
332	educational progress and how they can help their child to
333	succeed in school. The guidelines shall include, but need not be
334	limited to:
335	(e)  Educational choices, as provided for in s. 1002.20(6),
336	and Florida corporate income tax credit scholarships, as
337	provided for in s. 220.187;
338	Section 6.  Paragraph (b) of subsection (3) of section
339	1002.39, Florida Statutes, is amended to read:
340	1002.39  The John M. McKay Scholarships for Students with
341	Disabilities Program.--There is established a program that is
342	separate and distinct from the Opportunity Scholarship Program
343	and is named the John M. McKay Scholarships for Students with
344	Disabilities Program.
345	(3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student is
346	not eligible for a John M. McKay Scholarship while he or she is:
347	(b)  Receiving a Florida corporate income tax credit
348	scholarship under s. 220.187;
349	Section 7.  Subsection (1) of section 1002.421, Florida
350	Statutes, is amended to read:
351	1002.421  Accountability of private schools participating
352	in state school choice scholarship programs.--
353	(1)  A Florida private school participating in the Florida
354	Corporate Income Tax Credit Scholarship Program established
355	pursuant to s. 220.187 or an educational scholarship program
356	established pursuant to this chapter must comply with all
357	requirements of this section in addition to private school
358	requirements outlined in s. 1002.42, specific requirements
359	identified within respective scholarship program laws, and other
360	provisions of Florida law that apply to private schools.
361	Section 8.  If any provision of this act or the application
362	thereof to any person or circumstance is held invalid, the
363	invalidity shall not affect other provisions or applications of
364	the act which can be given effect without the invalid provision
365	or application, and to this end the provisions of this act are
366	declared severable.
367	Section 9.  This act shall take effect July 1, 2009.

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