Florida Senate - 2021              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. CS for SB 48
       
       
       
       
       
                               Ì308678[Î308678                          
       
       602-02098B-21                                                   
       Proposed Committee Substitute by the Appropriations Subcommittee
       on Education
    1                        A bill to be entitled                      
    2         An act relating to educational scholarship programs;
    3         amending s. 11.45, F.S.; requiring the Auditor General
    4         to conduct certain audits at least every 3 years
    5         instead of annually; conforming provisions to changes
    6         made by the act; amending s. 211.0251, F.S.;
    7         conforming provisions to changes made by the act;
    8         deleting a provision limiting a certain tax credit to
    9         no more than 50 percent of the tax due on the return
   10         the credit is taken; amending s. 212.099, F.S.;
   11         revising the definition of the term “eligible
   12         contribution”; deleting the definition of the term
   13         “eligible nonprofit scholarship-funding organization”;
   14         requiring a dealer to identify on the dealer’s return
   15         the amount of an eligible contribution; requiring the
   16         Department of Revenue to ensure that certain receipts
   17         are deposited into a specified fund; conforming
   18         provisions to changes made by the act; amending s.
   19         212.1831, F.S.; conforming provisions to changes made
   20         by the act; amending s. 212.1832, F.S.; requiring
   21         dealers claiming certain tax credits to file and pay
   22         returns electronically; conforming provisions to
   23         changes made by the act; amending s. 213.053, F.S.;
   24         deleting authorization for the Department of Revenue
   25         to provide specified information to certain entities;
   26         deleting definitions; amending ss. 220.1105, 220.13,
   27         220.186, 220.1875, 561.1211, 624.51055, and 1002.20,
   28         F.S.; conforming provisions to changes made by the
   29         act; amending s. 1002.23, F.S.; correcting a reference
   30         to the Florida Virtual School; conforming a provision
   31         to changes made by the act; amending s. 1002.31, F.S.;
   32         adding certain students to those whom district school
   33         boards must provide preferential treatment in the
   34         controlled open enrollment process; creating s.
   35         1002.381, F.S.; establishing the McKay-Gardiner
   36         Scholarship Program; providing the purpose of the
   37         program; defining terms; specifying eligibility
   38         requirements; providing criteria for authorized uses
   39         of program funds; providing the terms of a program
   40         scholarship; requiring certain scholarship accounts to
   41         be closed and for specified funds to revert to the
   42         state under specified circumstances; providing school
   43         district obligations under the program; specifying
   44         obligations for eligible private schools; providing
   45         Department of Education obligations relating to the
   46         program; specifying Commissioner of Education
   47         authority and obligations; providing parent and
   48         student responsibilities for program participation;
   49         providing an application approval and renewal process
   50         for charitable organizations seeking to participate or
   51         remain in the program; establishing a procedure for
   52         when an organization is disapproved; providing that an
   53         organization is a renewing organization if it was
   54         approved by the state board for a certain fiscal year
   55         or after and maintains continuous approval and
   56         participation in the program; requiring the state
   57         board to adopt specified rules; exempting specified
   58         entities from the initial or renewal application
   59         process; providing obligations for organizations
   60         relating to establishing program scholarships;
   61         providing eligibility and obligations for transition
   62         to-work programs; specifying requirements for
   63         scholarship funding and payment; specifying the
   64         initial maximum number of students; providing for the
   65         annual increase of the maximum number of students;
   66         requiring the department to transfer certain funds to
   67         organizations in a specified manner; clarifying that
   68         accrued interest in student accounts is in addition
   69         to, and not part of, awarded funds; authorizing
   70         organizations to develop systems for payment of
   71         benefits by funds transfer; prohibiting organizations
   72         that develop such systems from reducing scholarship
   73         awards through certain fees; clarifying that
   74         scholarship funds do not constitute taxable income to
   75         the qualified student or to his or her parent;
   76         requiring the Auditor General to conduct certain
   77         audits at least once every 3 years; providing that the
   78         state is not liable for the award or use of program
   79         funds; requiring the State Board of Education to adopt
   80         rules; repealing ss. 1002.385 and 1002.39, F.S.,
   81         relating to the Gardiner Scholarship and the John M.
   82         McKay Scholarships for Students with Disabilities
   83         Program, respectively; amending s. 1002.394, F.S.;
   84         revising the Family Empowerment Scholarship Program;
   85         providing and revising definitions; specifying and
   86         revising eligibility requirements; revising the
   87         priority order for awarding scholarships; providing
   88         and revising terms for scholarship payments to
   89         organizations; providing circumstances under which a
   90         student’s account must be closed and remaining funds
   91         revert to the state; specifying the purposes for which
   92         such funds may be used; providing and revising
   93         department obligations relating to participating
   94         students; requiring the department to verify eligible
   95         expenditures before distributing funds; providing and
   96         revising obligations for eligible private schools;
   97         providing and revising parent and student obligations
   98         for initial and continued participation in the
   99         program; providing and revising nonprofit scholarship
  100         funding organization obligations relating to
  101         participating in the program; expanding eligibility to
  102         specified students who received certain scholarships
  103         in a specified school year; clarifying that certain
  104         scholarships do not count toward the maximum number of
  105         eligible students; providing the manner in which funds
  106         will be allocated; requiring the department to verify
  107         that a student is not prohibited from receiving a
  108         scholarship upon notification from an organization
  109         that an application has been approved; requiring the
  110         organization to provide the department with the
  111         documentation necessary to verify the student’s
  112         participation; requiring the department to release the
  113         student’s scholarship funds to the organization to be
  114         deposited into the student’s account upon
  115         verification; clarifying that accrued interest is in
  116         addition to, and not part of, awarded funds;
  117         authorizing organizations to develop a system for
  118         payment of benefits by funds transfer; prohibiting
  119         scholarship awards from being reduced by certain fees;
  120         clarifying that scholarship funds do not constitute
  121         taxable income to the qualified student or to his or
  122         her parent; requiring the Auditor General to conduct
  123         certain audits at least once every 3 years; providing
  124         an application approval and renewal process for
  125         charitable organizations seeking to participate or
  126         remain in the program; establishing a procedure for
  127         when an organization is disapproved; providing that an
  128         organization is a renewing organization if it was
  129         approved by the state board for a certain fiscal year
  130         or after and maintains continuous approval and
  131         participation in the program; requiring the state
  132         board to adopt rules; exempting specified entities
  133         from the initial or renewal application process;
  134         deleting an obsolete implementation schedule; amending
  135         s. 1002.395, F.S.; repealing the Florida Tax Credit
  136         Scholarship Program; revising and deleting terms;
  137         deleting provisions made obsolete by the act;
  138         retaining the tax credits available under the former
  139         scholarship program; specifying the manner in which a
  140         taxpayer may elect to make eligible contributions;
  141         requiring all eligible contributions received by the
  142         department and the division to be deposited into a
  143         specified fund; amending s. 1002.40, F.S.; repealing
  144         the Hope Scholarship Program; deleting provisions made
  145         obsolete by the act; revising and deleting terms;
  146         retaining the tax credits available under the former
  147         scholarship program; authorizing eligible
  148         contributions to be used for K-12 education funding;
  149         requiring the Department of Revenue to deposit all
  150         receipts of eligible contributions into a specified
  151         fund; requiring the Department of Revenue to adopt
  152         rules; amending s. 1002.411, F.S.; conforming a
  153         provision to changes made by the act; amending s.
  154         1002.421, F.S.; providing that private virtual schools
  155         meet the requirement to maintain a physical location
  156         in this state if such virtual schools maintain at
  157         least one administrative office in a specified manner;
  158         requiring certain private schools to provide reports
  159         from a specified public accountant; providing
  160         requirements for such reports; amending ss. 1009.971,
  161         1009.98, 1009.981, and 1011.61, F.S.; conforming
  162         provisions to changes made by the act; amending s.
  163         1011.62, F.S.; deleting a provision requiring that
  164         certain funds not be included in the calculated amount
  165         for certain scholarship awards; creating s. 1011.687,
  166         F.S.; establishing an allocation within the Florida
  167         Education Finance Program for certain scholarship
  168         programs; providing requirements for certain unused
  169         tax credits; clarifying that certain requirements
  170         apply to taxpayers who received tax credits before a
  171         certain date; providing an effective date.
  172          
  173  Be It Enacted by the Legislature of the State of Florida:
  174  
  175         Section 1. Paragraph (l) of subsection (2) and subsection
  176  (8) of section 11.45, Florida Statutes, are amended to read:
  177         11.45 Definitions; duties; authorities; reports; rules.—
  178         (2) DUTIES.—The Auditor General shall:
  179         (l) At least every 3 years, Annually conduct operational
  180  audits of the accounts and records of eligible nonprofit
  181  scholarship-funding organizations receiving eligible
  182  contributions under ss. 1002.381 and 1002.394 s. 1002.395,
  183  including any contracts for services with related entities, to
  184  determine compliance with the provisions of those sections that
  185  section. Such audits must shall include, but not be limited to,
  186  a determination of the eligible nonprofit scholarship-funding
  187  organization’s compliance with ss. 1002.381(13)(f) and
  188  1002.394(11)(k) s. 1002.395(6)(j). The Auditor General shall
  189  provide its report on the results of the audits to the Governor,
  190  the President of the Senate, the Speaker of the House of
  191  Representatives, the Chief Financial Officer, and the
  192  Legislative Auditing Committee, within 30 days of completion of
  193  the audit.
  194  
  195  The Auditor General shall perform his or her duties
  196  independently but under the general policies established by the
  197  Legislative Auditing Committee. This subsection does not limit
  198  the Auditor General’s discretionary authority to conduct other
  199  audits or engagements of governmental entities as authorized in
  200  subsection (3).
  201         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
  202  consultation with the Board of Accountancy, shall adopt rules
  203  for the form and conduct of all financial audits performed by
  204  independent certified public accountants pursuant to ss.
  205  215.981, 218.39, 1001.453, 1002.381, 1002.394 1002.395, 1004.28,
  206  and 1004.70. The rules for audits of local governmental
  207  entities, charter schools, charter technical career centers, and
  208  district school boards must include, but are not limited to,
  209  requirements for the reporting of information necessary to carry
  210  out the purposes of the Local Governmental Entity, Charter
  211  School, Charter Technical Career Center, and District School
  212  Board Financial Emergencies Act as stated in s. 218.501.
  213         Section 2. Section 211.0251, Florida Statutes, is amended
  214  to read:
  215         211.0251 Credit for contributions to K-12 education funding
  216  eligible nonprofit scholarship-funding organizations.—There is
  217  allowed a credit of 100 percent of an eligible contribution
  218  directed made to K-12 education funding an eligible nonprofit
  219  scholarship-funding organization under s. 1002.395 for against
  220  any tax due under s. 211.02 or s. 211.025. However, a credit
  221  allowed under this section may not exceed 50 percent of the tax
  222  due on the return the credit is taken. For purposes of the
  223  distributions of tax revenue under s. 211.06, the department
  224  shall disregard any tax credits allowed under this section to
  225  ensure that any reduction in tax revenue received which is
  226  attributable to the tax credits results only in a reduction in
  227  distributions to the General Revenue Fund. The provisions of s.
  228  1002.395 apply to the credit authorized by this section.
  229         Section 3. Section 212.099, Florida Statutes, is amended to
  230  read:
  231         212.099 Credit for contributions to K-12 education funding
  232  eligible nonprofit scholarship-funding organizations.—
  233         (1) As used in this section, the term:
  234         (a) “Eligible business” means a tenant or person actually
  235  occupying, using, or entitled to the use of any property from
  236  which the rental or license fee is subject to taxation under s.
  237  212.031.
  238         (b) “Eligible contribution” or “contribution” means the
  239  amount of tax, or portion thereof, paid by a monetary
  240  contribution from an eligible business to a collecting dealer
  241  and designated for K-12 education funding by the eligible
  242  business an eligible nonprofit scholarship-funding organization
  243  to be used pursuant to s. 1002.395. The eligible business making
  244  the contribution may not designate a specific student as the
  245  beneficiary of the contribution.
  246         (c) “Eligible nonprofit scholarship-funding organization”
  247  or “organization” has the same meaning as provided in s.
  248  1002.395(2)(f).
  249         (2) An eligible business shall be granted a credit against
  250  the tax imposed under s. 212.031 and collected from the eligible
  251  business by a dealer. The credit shall be in an amount equal to
  252  100 percent of an eligible contribution made to an organization.
  253         (3) A dealer shall take a credit against the tax imposed
  254  under s. 212.031 in an amount equal to the credit taken by the
  255  eligible business under subsection (2).
  256         (4)(a) An eligible business must apply to the department
  257  for an allocation of tax credits under this section. The
  258  eligible business must specify in the application the state
  259  fiscal year during which the contribution will be made, the
  260  organization that will receive the contribution, the planned
  261  amount of the contribution, the address of the property from
  262  which the rental or license fee is subject to taxation under s.
  263  212.031, and the federal employer identification number of the
  264  dealer who collects the tax imposed under s. 212.031 from the
  265  eligible business and who will reduce collection of taxes from
  266  the eligible business pursuant to this section. The department
  267  shall approve allocations of tax credits on a first-come, first
  268  served basis and shall provide to the eligible business a
  269  separate approval or denial letter for each dealer for which the
  270  eligible business applied for an allocation of tax credits.
  271  Within 10 days after approving or denying an application, the
  272  department shall provide a copy of its approval or denial letter
  273  to the organization specified by the eligible business in the
  274  application. An approval letter must include the name and
  275  federal employer identification number of the dealer from whom a
  276  credit under this section can be taken and the amount of tax
  277  credits approved for use with that dealer.
  278         (b) Upon receipt of an eligible contribution, the
  279  organization shall provide the eligible business that made the
  280  contribution with a separate certificate of contribution for
  281  each dealer from whom a credit can be taken as approved under
  282  paragraph (a). A certificate of contribution must include the
  283  contributor’s name and, if available, federal employer
  284  identification number, the amount contributed, the date of
  285  contribution, the name of the organization, and the name and
  286  federal employer identification number of the dealer.
  287         (5) Each dealer that receives from an eligible business a
  288  copy of the department’s approval letter and a certificate of
  289  contribution, both of which identify the dealer as the dealer
  290  who collects the tax imposed under s. 212.031 from the eligible
  291  business and who will reduce collection of taxes from the
  292  eligible business pursuant to this section, shall identify on
  293  the dealer’s return the amount of the eligible contribution by
  294  reduce the tax collected from the eligible business, which
  295  amount under s. 212.031 by the total amount of contributions
  296  indicated in the certificate of contribution. The reduction may
  297  not exceed the amount of credit allocation approved by the
  298  department and may not exceed the amount of tax that would
  299  otherwise be collected from the eligible business by a dealer
  300  when a payment is made under the rental or license fee
  301  arrangement. However, payments by an eligible business to a
  302  dealer may not be reduced before October 1, 2018.
  303         (a) If the total amount of credits an eligible business may
  304  take cannot be fully used within any period that a payment is
  305  due under the rental or license fee arrangement because of an
  306  insufficient amount of tax that the dealer would collect from
  307  the eligible business during that period, the unused amount may
  308  be carried forward for a period not to exceed 10 years.
  309         (b) A tax credit may not be claimed on an amended return or
  310  through a refund.
  311         (c) A dealer that claims a tax credit must file returns and
  312  pay taxes by electronic means under s. 213.755.
  313         (d) An eligible business may not convey, assign, or
  314  transfer an approved tax credit or a carryforward tax credit to
  315  another entity unless all of the assets of the eligible business
  316  are conveyed, assigned, or transferred in the same transaction
  317  and the successor business continues the same lease with the
  318  dealer.
  319         (e) Within any state fiscal year, an eligible business may
  320  rescind all or part of a tax credit approved under this section.
  321  The amount rescinded shall become available for that state
  322  fiscal year to another eligible business as approved by the
  323  department if the business receives notice from the department
  324  that the rescindment has been accepted by the department. Any
  325  amount rescinded under this subsection shall become available to
  326  an eligible business on a first-come, first-served basis based
  327  on tax credit applications received after the date the
  328  rescindment is accepted by the department.
  329         (f) Within 10 days after the rescindment of a tax credit
  330  under paragraph (e) is accepted by the department, the
  331  department shall notify the eligible nonprofit scholarship
  332  funding organization specified by the eligible business. The
  333  department shall also include the eligible nonprofit
  334  scholarship-funding organization specified by the eligible
  335  business on all letters or correspondence of acknowledgment for
  336  tax credits under this section.
  337         (6) An organization shall report to the department, on or
  338  before the 20th day of each month, the total amount of
  339  contributions received pursuant to subsection (4) in the
  340  preceding calendar month on a form provided by the department.
  341  Such report shall include the amount of contributions received
  342  during that reporting period and the federal employer
  343  identification number of each dealer associated with the
  344  contribution.
  345         (7)(a) Eligible contributions may be used to fund the
  346  purposes program established under s. 1002.395.
  347         (b) The organization shall separately account for each
  348  scholarship funded pursuant to this section.
  349         (c) The organization may, subject to the limitations of s.
  350  1002.395(6)(j)1., use eligible contributions received during the
  351  state fiscal year in which such contributions are collected for
  352  administrative expenses.
  353         (7)(8) The sum of tax credits that may be approved by the
  354  department in any state fiscal year is $57.5 million.
  355         (8)(9)The department shall ensure that receipts designated
  356  by a remitting dealer as eligible contributions under this
  357  section and eligible contributions transferred to the state by
  358  an organization are deposited into a designated student fund.
  359  For purposes of the distributions of tax revenue under s.
  360  212.20, the department shall disregard any tax credits allowed
  361  under this section to ensure that any reduction in tax revenue
  362  received that is attributable to the tax credits results only in
  363  a reduction in distributions to the General Revenue Fund.
  364         (9)(10) The department may adopt rules to administer this
  365  section.
  366         Section 4. Section 212.1831, Florida Statutes, is amended
  367  to read:
  368         212.1831 Credit for contributions to K-12 education funding
  369  eligible nonprofit scholarship-funding organizations.—There is
  370  allowed a credit of 100 percent of an eligible contribution made
  371  to an eligible nonprofit scholarship-funding organization under
  372  s. 1002.395 against any tax imposed by the state and due under
  373  this chapter from a direct pay permit holder as a result of the
  374  direct pay permit held pursuant to s. 212.183. For purposes of
  375  the dealer’s credit granted for keeping prescribed records,
  376  filing timely tax returns, and properly accounting and remitting
  377  taxes under s. 212.12, the amount of tax due used to calculate
  378  the credit shall include any eligible contribution made to an
  379  eligible nonprofit scholarship-funding organization from a
  380  direct pay permit holder. For purposes of the distributions of
  381  tax revenue under s. 212.20, the department shall disregard any
  382  tax credits allowed under this section to ensure that any
  383  reduction in tax revenue received that is attributable to the
  384  tax credits results only in a reduction in distributions to the
  385  General Revenue Fund. The provisions of s. 1002.395 apply to the
  386  credit authorized by this section.
  387         Section 5. Section 212.1832, Florida Statutes, is amended
  388  to read:
  389         212.1832 Credit for contributions to K-12 education funding
  390  eligible nonprofit scholarship-funding organizations.—
  391         (1) The purchaser of a motor vehicle shall be granted a
  392  credit of 100 percent of an eligible contribution made to an
  393  eligible nonprofit scholarship-funding organization under s.
  394  1002.40 against any tax imposed by the state under this chapter
  395  and collected from the purchaser by a dealer, designated agent,
  396  or private tag agent as a result of the purchase or acquisition
  397  of a motor vehicle, except that a credit may not exceed the tax
  398  that would otherwise be collected from the purchaser by a
  399  dealer, designated agent, or private tag agent. For purposes of
  400  this subsection, the term “purchase” does not include the lease
  401  or rental of a motor vehicle.
  402         (2) A dealer shall take a credit against any tax imposed by
  403  the state under this chapter on the purchase of a motor vehicle
  404  in an amount equal to the credit granted to the purchaser under
  405  subsection (1). A dealer that claims a tax credit must file
  406  returns and pay taxes by electronic means under s. 213.755.
  407         (3) For purposes of the distributions of tax revenue under
  408  s. 212.20, the department shall disregard any tax credits
  409  allowed under this section to ensure that any reduction in tax
  410  revenue received that is attributable to the tax credits results
  411  only in a reduction in distributions to the General Revenue
  412  Fund. The provisions of s. 1002.40 apply to the credit
  413  authorized by this section.
  414         Section 6. Paragraph (s) of subsection (8) and subsections
  415  (21) and (22) of section 213.053, Florida Statutes, are amended
  416  to read:
  417         213.053 Confidentiality and information sharing.—
  418         (8) Notwithstanding any other provision of this section,
  419  the department may provide:
  420         (s) Information relative to ss. 211.0251, 212.1831,
  421  220.1875, 561.1211, 624.51055, and 1002.395 to the Department of
  422  Education and the Division of Alcoholic Beverages and Tobacco in
  423  the conduct of official business.
  424  
  425  Disclosure of information under this subsection shall be
  426  pursuant to a written agreement between the executive director
  427  and the agency. Such agencies, governmental or nongovernmental,
  428  shall be bound by the same requirements of confidentiality as
  429  the Department of Revenue. Breach of confidentiality is a
  430  misdemeanor of the first degree, punishable as provided by s.
  431  775.082 or s. 775.083.
  432         (21)(a) For purposes of this subsection, the term:
  433         1. “Eligible nonprofit scholarship-funding organization”
  434  means an eligible nonprofit scholarship-funding organization as
  435  defined in s. 1002.395(2) that meets the criteria in s.
  436  1002.395(6) to use up to 3 percent of eligible contributions for
  437  administrative expenses.
  438         2. “Taxpayer” has the same meaning as in s. 220.03, unless
  439  disclosure of the taxpayer’s name and address would violate any
  440  term of an information-sharing agreement between the department
  441  and an agency of the Federal Government.
  442         (b) The department, upon request, shall provide to an
  443  eligible nonprofit scholarship-funding organization that
  444  provides scholarships under s. 1002.395 a list of the 200
  445  taxpayers with the greatest total corporate income or franchise
  446  tax due as reported on the taxpayer’s return filed pursuant to
  447  s. 220.22 during the previous calendar year. The list must be in
  448  alphabetical order based on the taxpayer’s name and shall
  449  contain the taxpayer’s address. The list may not disclose the
  450  amount of tax owed by any taxpayer.
  451         (c) An eligible nonprofit scholarship-funding organization
  452  may request the list once each calendar year. The department
  453  shall provide the list within 45 days after the request is made.
  454         (d) Any taxpayer information contained in the list may be
  455  used by the eligible nonprofit scholarship-funding organization
  456  only to notify the taxpayer of the opportunity to make an
  457  eligible contribution to the Florida Tax Credit Scholarship
  458  Program under s. 1002.395. Any information furnished to an
  459  eligible nonprofit scholarship-funding organization under this
  460  subsection may not be further disclosed by the organization
  461  except as provided in this paragraph.
  462         (e) An eligible nonprofit scholarship-funding organization,
  463  its officers, and employees are subject to the same requirements
  464  of confidentiality and the same penalties for violating
  465  confidentiality as the department and its employees. Breach of
  466  confidentiality is a misdemeanor of the first degree, punishable
  467  as provided by s. 775.082 or s. 775.083.
  468         (22)(a) The department may provide to an eligible nonprofit
  469  scholarship-funding organization, as defined in s. 1002.40, a
  470  dealer’s name, address, federal employer identification number,
  471  and information related to differences between credits taken by
  472  the dealer pursuant to s. 212.1832(2) and amounts remitted to
  473  the eligible nonprofit scholarship-funding organization under s.
  474  1002.40(13)(b)3. The eligible nonprofit scholarship-funding
  475  organization may use the information for purposes of recovering
  476  eligible contributions designated for that organization that
  477  were collected by the dealer but never remitted to the
  478  organization.
  479         (b) Nothing in this subsection authorizes the disclosure of
  480  information if such disclosure is prohibited by federal law. An
  481  eligible nonprofit scholarship-funding organization is bound by
  482  the same requirements of confidentiality and the same penalties
  483  for a violation of the requirements as the department.
  484         Section 7. Paragraph (a) of subsection (4) of section
  485  220.1105, Florida Statutes, is amended to read:
  486         220.1105 Tax imposed; automatic refunds and downward
  487  adjustments to tax rates.—
  488         (4) For fiscal years 2018-2019 through 2020-2021, any
  489  amount by which net collections for a fiscal year exceed
  490  adjusted forecasted collections for that fiscal year shall only
  491  be used to provide refunds to corporate income tax payers as
  492  follows:
  493         (a) For purposes of this subsection, the term:
  494         1. “Eligible taxpayer” means:
  495         a. For fiscal year 2018-2019, a taxpayer whose taxable year
  496  begins between April 1, 2017, and March 31, 2018, and whose
  497  final tax liability for such taxable year is greater than zero;
  498         b. For fiscal year 2019-2020, a taxpayer whose taxable year
  499  begins between April 1, 2018, and March 31, 2019, and whose
  500  final tax liability for such taxable year is greater than zero;
  501  or
  502         c. For fiscal year 2020-2021, a taxpayer whose taxable year
  503  begins between April 1, 2019, and March 31, 2020, and whose
  504  final tax liability for such taxable year is greater than zero.
  505         2. “Excess collections” for a fiscal year means the amount
  506  by which net collections for a fiscal year exceeds adjusted
  507  forecasted collections for that fiscal year.
  508         3. “Final tax liability” means the taxpayer’s amount of tax
  509  due under this chapter for a taxable year, reported on a return
  510  filed with the department, plus the amount of any credit taken
  511  on such return under s. 220.1875.
  512         4. “Total eligible tax liability” for a fiscal year means
  513  the sum of final tax liabilities of all eligible taxpayers for a
  514  fiscal year as such liabilities are shown on the latest return
  515  filed with the department as of February 1 immediately following
  516  that fiscal year.
  517         5. “Taxpayer refund share” for a fiscal year means an
  518  eligible taxpayer’s final tax liability as a percentage of the
  519  total eligible tax liability for that fiscal year.
  520         6. “Taxpayer refund” for a fiscal year means the taxpayer
  521  refund share for a fiscal year multiplied by the excess
  522  collections for a fiscal year.
  523         Section 8. Paragraph (a) of subsection (1) of section
  524  220.13, Florida Statutes, is amended to read:
  525         220.13 “Adjusted federal income” defined.—
  526         (1) The term “adjusted federal income” means an amount
  527  equal to the taxpayer’s taxable income as defined in subsection
  528  (2), or such taxable income of more than one taxpayer as
  529  provided in s. 220.131, for the taxable year, adjusted as
  530  follows:
  531         (a) Additions.—There shall be added to such taxable income:
  532         1.a. The amount of any tax upon or measured by income,
  533  excluding taxes based on gross receipts or revenues, paid or
  534  accrued as a liability to the District of Columbia or any state
  535  of the United States which is deductible from gross income in
  536  the computation of taxable income for the taxable year.
  537         b. Notwithstanding sub-subparagraph a., if a credit taken
  538  under s. 220.1875 is added to taxable income in a previous
  539  taxable year under subparagraph 11. and is taken as a deduction
  540  for federal tax purposes in the current taxable year, the amount
  541  of the deduction allowed shall not be added to taxable income in
  542  the current year. The exception in this sub-subparagraph is
  543  intended to ensure that the credit under s. 220.1875 is added in
  544  the applicable taxable year and does not result in a duplicate
  545  addition in a subsequent year.
  546         2. The amount of interest which is excluded from taxable
  547  income under s. 103(a) of the Internal Revenue Code or any other
  548  federal law, less the associated expenses disallowed in the
  549  computation of taxable income under s. 265 of the Internal
  550  Revenue Code or any other law, excluding 60 percent of any
  551  amounts included in alternative minimum taxable income, as
  552  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  553  taxpayer pays tax under s. 220.11(3).
  554         3. In the case of a regulated investment company or real
  555  estate investment trust, an amount equal to the excess of the
  556  net long-term capital gain for the taxable year over the amount
  557  of the capital gain dividends attributable to the taxable year.
  558         4. That portion of the wages or salaries paid or incurred
  559  for the taxable year which is equal to the amount of the credit
  560  allowable for the taxable year under s. 220.181. This
  561  subparagraph shall expire on the date specified in s. 290.016
  562  for the expiration of the Florida Enterprise Zone Act.
  563         5. That portion of the ad valorem school taxes paid or
  564  incurred for the taxable year which is equal to the amount of
  565  the credit allowable for the taxable year under s. 220.182. This
  566  subparagraph shall expire on the date specified in s. 290.016
  567  for the expiration of the Florida Enterprise Zone Act.
  568         6. The amount taken as a credit under s. 220.195 which is
  569  deductible from gross income in the computation of taxable
  570  income for the taxable year.
  571         7. That portion of assessments to fund a guaranty
  572  association incurred for the taxable year which is equal to the
  573  amount of the credit allowable for the taxable year.
  574         8. In the case of a nonprofit corporation which holds a
  575  pari-mutuel permit and which is exempt from federal income tax
  576  as a farmers’ cooperative, an amount equal to the excess of the
  577  gross income attributable to the pari-mutuel operations over the
  578  attributable expenses for the taxable year.
  579         9. The amount taken as a credit for the taxable year under
  580  s. 220.1895.
  581         10. Up to nine percent of the eligible basis of any
  582  designated project which is equal to the credit allowable for
  583  the taxable year under s. 220.185.
  584         11. The amount taken as a credit for the taxable year under
  585  s. 220.1875. The addition in this subparagraph is intended to
  586  ensure that the same amount is not allowed for the tax purposes
  587  of this state as both a deduction from income and a credit
  588  against the tax. This addition is not intended to result in
  589  adding the same expense back to income more than once.
  590         12. The amount taken as a credit for the taxable year under
  591  s. 220.193.
  592         12.13. Any portion of a qualified investment, as defined in
  593  s. 288.9913, which is claimed as a deduction by the taxpayer and
  594  taken as a credit against income tax pursuant to s. 288.9916.
  595         13.14. The costs to acquire a tax credit pursuant to s.
  596  288.1254(5) that are deducted from or otherwise reduce federal
  597  taxable income for the taxable year.
  598         14.15. The amount taken as a credit for the taxable year
  599  pursuant to s. 220.194.
  600         15.16. The amount taken as a credit for the taxable year
  601  under s. 220.196. The addition in this subparagraph is intended
  602  to ensure that the same amount is not allowed for the tax
  603  purposes of this state as both a deduction from income and a
  604  credit against the tax. The addition is not intended to result
  605  in adding the same expense back to income more than once.
  606         Section 9. Subsection (2) of section 220.186, Florida
  607  Statutes, is amended to read:
  608         220.186 Credit for Florida alternative minimum tax.—
  609         (2) The credit pursuant to this section shall be the amount
  610  of the excess, if any, of the tax paid based upon taxable income
  611  determined pursuant to s. 220.13(2)(k) over the amount of tax
  612  which would have been due based upon taxable income without
  613  application of s. 220.13(2)(k), before application of this
  614  credit without application of any credit under s. 220.1875.
  615         Section 10. Section 220.1875, Florida Statutes, is amended
  616  to read:
  617         220.1875 Credit for contributions to K-12 education funding
  618  eligible nonprofit scholarship-funding organizations.—
  619         (1) There is allowed a credit of 100 percent of an eligible
  620  contribution made to an eligible nonprofit scholarship-funding
  621  organization under s. 1002.395 against any tax due for a taxable
  622  year under this chapter after the application of any other
  623  allowable credits by the taxpayer. An eligible contribution must
  624  be made when the taxpayer makes an estimated payment to an
  625  eligible nonprofit scholarship-funding organization on or before
  626  the date the taxpayer is required to file a return pursuant to
  627  s. 220.222. The credit granted by this section shall be reduced
  628  by the difference between the amount of federal corporate income
  629  tax taking into account the credit granted by this section and
  630  the amount of federal corporate income tax without application
  631  of the credit granted by this section.
  632         (2) A taxpayer who files a Florida consolidated return as a
  633  member of an affiliated group pursuant to s. 220.131(1) may be
  634  allowed the credit on a consolidated return basis; however, the
  635  total credit taken by the affiliated group is subject to the
  636  limitation established under subsection (1).
  637         (3) The provisions of s. 1002.395 apply to the credit
  638  authorized by this section.
  639         (4) If a taxpayer applies and is approved for a credit
  640  under s. 1002.395 after timely requesting an extension to file
  641  under s. 220.222(2):
  642         (a) The credit does not reduce the amount of tax due for
  643  purposes of the department’s determination as to whether the
  644  taxpayer was in compliance with the requirement to pay tentative
  645  taxes under ss. 220.222 and 220.32.
  646         (b) The taxpayer’s noncompliance with the requirement to
  647  pay tentative taxes shall result in the revocation and
  648  rescindment of any such credit.
  649         (c) The taxpayer shall be assessed for any taxes,
  650  penalties, or interest due from the taxpayer’s noncompliance
  651  with the requirement to pay tentative taxes.
  652         Section 11. Section 561.1211, Florida Statutes, is amended
  653  to read:
  654         561.1211 Credit for contributions to K-12 education funding
  655  eligible nonprofit scholarship-funding organizations.—There is
  656  allowed a credit of 100 percent of an eligible contribution made
  657  to an eligible nonprofit scholarship-funding organization under
  658  s. 1002.395 against any tax due under s. 563.05, s. 564.06, or
  659  s. 565.12, except excise taxes imposed on wine produced by
  660  manufacturers in this state from products grown in this state.
  661  However, a credit allowed under this section may not exceed 90
  662  percent of the tax due on the return the credit is taken. For
  663  purposes of the distributions of tax revenue under ss. 561.121
  664  and 564.06(10), the division shall disregard any tax credits
  665  allowed under this section to ensure that any reduction in tax
  666  revenue received that is attributable to the tax credits results
  667  only in a reduction in distributions to the General Revenue
  668  Fund. The provisions of s. 1002.395 apply to the credit
  669  authorized by this section.
  670         Section 12. Section 624.51055, Florida Statutes, is amended
  671  to read:
  672         624.51055 Credit for contributions to K-12 education
  673  funding eligible nonprofit scholarship-funding organizations.—
  674         (1) There is allowed a credit of 100 percent of an eligible
  675  contribution made to an eligible nonprofit scholarship-funding
  676  organization under s. 1002.395 against any tax due for a taxable
  677  year under s. 624.509(1) after deducting from such tax
  678  deductions for assessments made pursuant to s. 440.51; credits
  679  for taxes paid under ss. 175.101 and 185.08; credits for income
  680  taxes paid under chapter 220; and the credit allowed under s.
  681  624.509(5), as such credit is limited by s. 624.509(6). An
  682  eligible contribution must be made to an eligible nonprofit
  683  scholarship-funding organization on or before the date the
  684  taxpayer is required to file a return pursuant to ss. 624.509
  685  and 624.5092. An insurer claiming a credit against premium tax
  686  liability under this section shall not be required to pay any
  687  additional retaliatory tax levied pursuant to s. 624.5091 as a
  688  result of claiming such credit. Section 624.5091 does not limit
  689  such credit in any manner.
  690         (2) The provisions of s. 1002.395 apply to the credit
  691  authorized by this section.
  692         Section 13. Paragraph (a) of subsection (6) of section
  693  1002.20, Florida Statutes, is amended to read:
  694         1002.20 K-12 student and parent rights.—Parents of public
  695  school students must receive accurate and timely information
  696  regarding their child’s academic progress and must be informed
  697  of ways they can help their child to succeed in school. K-12
  698  students and their parents are afforded numerous statutory
  699  rights including, but not limited to, the following:
  700         (6) EDUCATIONAL CHOICE.—
  701         (a) Public educational school choices.—Parents of public
  702  school students may seek any public educational school choice
  703  options that are applicable and available to students throughout
  704  the state. These options may include controlled open enrollment,
  705  single-gender programs, lab schools, virtual instruction
  706  programs, charter schools, charter technical career centers,
  707  magnet schools, alternative schools, special programs, auditory
  708  oral education programs, advanced placement, dual enrollment,
  709  International Baccalaureate, International General Certificate
  710  of Secondary Education (pre-AICE), CAPE digital tools, CAPE
  711  industry certifications, collegiate high school programs,
  712  Advanced International Certificate of Education, early
  713  admissions, credit by examination or demonstration of
  714  competency, the New World School of the Arts, the Florida School
  715  for the Deaf and the Blind, and the Florida Virtual School.
  716  These options may also include the public educational choice
  717  options of the Opportunity Scholarship Program and the Family
  718  Empowerment Scholarship McKay Scholarships for Students with
  719  Disabilities Program.
  720         Section 14. Subsection (2) of section 1002.23, Florida
  721  Statutes, is amended to read:
  722         1002.23 Family and School Partnership for Student
  723  Achievement Act.—
  724         (2) To facilitate meaningful parent and family involvement,
  725  the Department of Education shall develop guidelines for a
  726  parent guide to successful student achievement which describes
  727  what parents need to know about their child’s educational
  728  progress and how they can help their child to succeed in school.
  729  The guidelines shall include, but need not be limited to:
  730         (a) Parental information regarding:
  731         1. Requirements for their child to be promoted to the next
  732  grade, as provided for in s. 1008.25;
  733         2. Progress of their child toward achieving state and
  734  district expectations for academic proficiency;
  735         3. Assessment results, including report cards and progress
  736  reports;
  737         4. Qualifications of their child’s teachers; and
  738         5. School entry requirements, including required
  739  immunizations and the recommended immunization schedule;
  740         (b) Services available for parents and their children, such
  741  as family literacy services; mentoring, tutorial, and other
  742  academic reinforcement programs; college planning, academic
  743  advisement, and student counseling services; and after-school
  744  programs;
  745         (c) Opportunities for parental participation, such as
  746  parenting classes, adult education, school advisory councils,
  747  and school volunteer programs;
  748         (d) Opportunities for parents to learn about rigorous
  749  academic programs that may be available for their child, such as
  750  honors programs, dual enrollment, advanced placement,
  751  International Baccalaureate, International General Certificate
  752  of Secondary Education (pre-AICE), Advanced International
  753  Certificate of Education, Florida Virtual High School courses,
  754  and accelerated access to postsecondary education;
  755         (e) Educational choices, as provided for in s. 1002.20(6),
  756  and Florida tax credit scholarships, as provided for in s.
  757  1002.395;
  758         (f) Classroom and test accommodations available for
  759  students with disabilities;
  760         (g) School board rules, policies, and procedures for
  761  student promotion and retention, academic standards, student
  762  assessment, courses of study, instructional materials, and
  763  contact information for school and district offices; and
  764         (h) Resources for information on student health and other
  765  available resources for parents.
  766         Section 15. Paragraph (c) of subsection (2) of section
  767  1002.31, Florida Statutes, is amended to read:
  768         1002.31 Controlled open enrollment; Public school parental
  769  choice.—
  770         (2)
  771         (c) Each district school board must provide preferential
  772  treatment in its controlled open enrollment process to all of
  773  the following:
  774         1. Dependent children of active duty military personnel
  775  whose move resulted from military orders.
  776         2. Children who have been relocated due to a foster care
  777  placement in a different school zone.
  778         3. Children who move due to a court-ordered change in
  779  custody due to separation or divorce, or the serious illness or
  780  death of a custodial parent.
  781         4. Students with an individual education plan or a 504
  782  accommodation plan under s. 504 of the Rehabilitation Act of
  783  1973 who are eligible for a McKay-Gardiner Scholarship pursuant
  784  to s. 1002.381.
  785         5. Students residing in the school district.
  786         Section 16. Section 1002.381, Florida Statutes, is created
  787  to read:
  788         1002.381 The McKay-Gardiner Scholarship Program.—
  789         (1) ESTABLISHMENT OF PROGRAM.—Beginning with the 2021-2022
  790  school year, the McKay-Gardiner Scholarship Program is
  791  established to provide the option for a parent to better meet
  792  the individual educational needs of his or her eligible child.
  793  All written explanatory materials, including state websites,
  794  scholarship organization materials, letters to parents,
  795  scholarship agreements, and any other written information
  796  describing the program to the public, must refer to a
  797  scholarship granted under this program as a “McKay-Gardiner
  798  Scholarship.”
  799         (2) DEFINITIONS.—As used in this section, the term:
  800         (a) “Approved provider” means a provider approved by the
  801  Agency for Persons with Disabilities, a health care practitioner
  802  as defined in s. 456.001(4), or a provider approved by the
  803  department pursuant to s. 1002.66.
  804         (b) “Curriculum” has the same meaning as provided in s.
  805  1002.394(2)(b).
  806         (c) “Department” means the Department of Education.
  807         (d) “Disability” means:
  808         1. For a 3-year-old or 4-year-old child or for a student in
  809  kindergarten through grade 12, that the child has been diagnosed
  810  with any of the following: autism spectrum disorder; cerebral
  811  palsy; Down syndrome; an intellectual disability; Phelan
  812  McDermid syndrome; Prader-Willi syndrome; spina bifida; being a
  813  high-risk child, as defined in s. 393.063(23)(a); muscular
  814  dystrophy; Williams syndrome; rare diseases which affect patient
  815  populations of fewer than 200,000 individuals in the United
  816  States, as defined by the National Organization for Rare
  817  Disorders; anaphylaxis; deaf; visually impaired; traumatic
  818  brain-injured; hospital or homebound; or dual sensory impaired,
  819  as defined by rules of the State Board of Education and
  820  evidenced by reports from local school districts. As used in
  821  this subparagraph, the term “hospital or homebound” includes a
  822  student who has a medically diagnosed physical or psychiatric
  823  condition or illness, as defined by state board rule, and who is
  824  confined to the home or hospital for more than 6 months.
  825         2. For a student in kindergarten through grade 12, that the
  826  child has been diagnosed with any of the following: a speech
  827  impairment; a language impairment; a hearing impairment; an
  828  orthopedic impairment; an emotional or behavioral disability; a
  829  specific learning disability, including, but not limited to,
  830  dyslexia, dyscalculia, or developmental aphasia; or a
  831  developmental delay.
  832         (e) “Eligible nonprofit scholarship-funding organization”
  833  or “organization” means a state university; or an independent
  834  college or university that is eligible to participate in the
  835  William L. Boyd, IV, Effective Access to Student Education Grant
  836  Program located and chartered in this state which is not for
  837  profit and is accredited by the Commission on Colleges of the
  838  Southern Association of Colleges and Schools; or is a charitable
  839  organization that:
  840         1. Is exempt from federal income tax pursuant to s.
  841  501(c)(3) of the Internal Revenue Code;
  842         2. Is a Florida entity formed under chapter 605, chapter
  843  607, or chapter 617 and whose principal office is located in
  844  this state; and
  845         3. Complies with subsections (12) and (13).
  846         (f) “Eligible postsecondary educational institution” has
  847  the same meaning as s. 1002.394(2)(f).
  848         (g) “Eligible private school” has the same meaning as s.
  849  1002.394(2)(g).
  850         (h) “IEP” means an individual education plan, regardless of
  851  whether the plan has been reviewed or revised within the last 12
  852  months.
  853         (i) “Inactive” means that no eligible expenditures have
  854  been made from a student scholarship account funded pursuant to
  855  this section.
  856         (j)“Job coach” means an individual employed to help people
  857  with disabilities learn, accommodate, and perform their work
  858  duties.
  859         (k) “Parent” means a resident of this state who is a
  860  parent, as defined in s. 1000.21(5).
  861         (l) “Program” means the McKay-Gardiner Scholarship Program
  862  established in this section.
  863         (3) PROGRAM ELIGIBILITY.—A parent of a student with a
  864  disability may request and receive from the state a McKay
  865  Gardiner Scholarship for the purposes specified in subsection
  866  (5) if:
  867         (a) The student:
  868         1. Is a resident of this state;
  869         2. Is 3 or 4 years of age on or before September 1 of the
  870  year in which the student applies for program participation, or
  871  is eligible to enroll in kindergarten through grade 12 in a
  872  public school in this state; and
  873         3. Meets at least one of the following criteria:
  874         a. Has a diagnosis of a disability from a physician who is
  875  licensed under chapter 458 or chapter 459, a psychologist who is
  876  licensed under chapter 490, or a physician who holds an active
  877  license issued by another state or territory of the United
  878  States, the District of Columbia, or the Commonwealth of Puerto
  879  Rico;
  880         b. Has an individual education plan that has been written
  881  in accordance with the rules of the State Board of Education; or
  882         c.Has a 504 accommodation plan issued under s. 504 of the
  883  Rehabilitation Act of 1973.
  884  
  885  A student with a disability who meets the requirements of
  886  subparagraph 1. and sub-subparagraph 3.a., but who turns 3 years
  887  of age after September 1, may be determined to be eligible on or
  888  after his or her third birthday and may be awarded a scholarship
  889  if program funds are available.
  890         (b) The parent has applied to an eligible nonprofit
  891  scholarship-funding organization to participate in the program
  892  by a date as set by the organization for any vacant slots. The
  893  request must be communicated directly to the organization in a
  894  manner that creates a written or electronic record of the
  895  request and the date of receipt of the request.
  896         (4) PROGRAM PROHIBITIONS.—A student is not eligible for the
  897  program if he or she is:
  898         (a) Enrolled in a public school, including, but not limited
  899  to, the Florida School for the Deaf and the Blind, the College
  900  Preparatory Boarding Academy, a developmental research school
  901  authorized under s. 1002.32, or a charter school authorized
  902  under this chapter. For purposes of this paragraph, a 3- or 4
  903  year-old child who receives services funded through the Florida
  904  Education Finance Program is considered to be a student enrolled
  905  in a public school.
  906         (b) Enrolled in a school operating for the purpose of
  907  providing educational services to youth in Department of
  908  Juvenile Justice commitment programs.
  909         (c) Issued a temporary 504 accommodation plan under s. 504
  910  of the Rehabilitation Act of 1973 which is valid for 6 months or
  911  less.
  912         (d) Receiving any other educational scholarship pursuant to
  913  this chapter.
  914         (e)Not having regular and direct contact with his or her
  915  private school teachers pursuant to s. 1002.421(1)(i), unless he
  916  or she is enrolled in the private school’s transition-to-work
  917  program pursuant to subsection (14) or a home education program
  918  pursuant to s. 1002.41.
  919         (f)Participating in a virtual school, correspondence
  920  school, or distance learning program that receives state funding
  921  pursuant to the student’s participation.
  922         (5) AUTHORIZED USES OF PROGRAM FUNDS.—Program funds must be
  923  used to meet the individual educational needs of an eligible
  924  student and may be spent only for the following purposes:
  925         (a) Instructional materials, including school equipment and
  926  supplies, and digital devices, digital periphery devices, and
  927  assistive technology devices that allow a student to access
  928  instruction or instructional content; training on the use of
  929  these devices and related maintenance agreements; and Internet
  930  access to digital instructional materials.
  931         (b) Curriculum.
  932         (c) Specialized services by approved providers or by a
  933  hospital in this state which are selected by the parent. These
  934  specialized services may include, but are not limited to:
  935         1. Applied behavior analysis services as provided in ss.
  936  627.6686 and 641.31098.
  937         2. Services provided by a speech-language pathologist as
  938  defined in s. 468.1125(8).
  939         3. Occupational therapy services as specified in s.
  940  468.203.
  941         4. Services provided by a physical therapist as defined in
  942  s. 486.021(5).
  943         5. Services provided by listening and spoken language
  944  specialists and an appropriate acoustical environment for a
  945  child who is deaf or hard of hearing and who has received an
  946  implant or assistive hearing device.
  947         (d) Tuition or fees associated with full-time or part-time
  948  enrollment in any of the following:
  949         1. A home education program, an eligible private school, an
  950  eligible postsecondary educational institution, or a program
  951  offered by the postsecondary institution;
  952         2. A private tutoring program authorized under s. 1002.43,
  953  a virtual program offered by a department-approved private
  954  online provider that meets the provider qualifications specified
  955  in s. 1002.45(2)(a), or a program offered by the Florida Virtual
  956  School to a private paying student; or
  957         3. An approved online course offered pursuant to s.
  958  1003.499 or s. 1004.0961 or a private virtual school that meets
  959  the requirements of s. 1002.421.
  960         (e) Fees for nationally standardized, norm-referenced
  961  achievement tests, Advanced Placement examinations, industry
  962  certification examinations, assessments related to postsecondary
  963  education, or other such assessments.
  964         (f) Contributions to the Stanley G. Tate Florida Prepaid
  965  College Program pursuant to s. 1009.98 or the Florida College
  966  Savings Program pursuant to s. 1009.981, for the benefit of the
  967  eligible student.
  968         (g) Contracted services provided by a public school or a
  969  school district, including classes. A student who receives
  970  services under this paragraph is not considered enrolled in a
  971  public school for the purpose of eligibility as provided in
  972  subsection (4).
  973         (h) Tuition and fees for part-time tutoring services
  974  provided by a person who holds a valid Florida educator’s
  975  certificate issued pursuant to s. 1012.56; a person who holds an
  976  adjunct teaching certificate issued pursuant to s. 1012.57; a
  977  person who has a bachelor’s degree or a graduate degree in the
  978  subject area in which instruction is given; or a person who has
  979  demonstrated a mastery of subject area knowledge as provided in
  980  s. 1012.56(5) or approved by the department. Any part-time
  981  tutoring undertaken pursuant to this paragraph does not qualify
  982  as regular school attendance as defined in s. 1003.01(13)(e).
  983         (i) Fees for summer education programs.
  984         (j) Fees for after-school education programs.
  985         (k) Transition services, including a coordinated set of
  986  activities focused on improving the academic and functional
  987  achievement of the student to facilitate his or her movement
  988  from school to post-school activities and based on the
  989  individual student’s needs. Transition services may be provided
  990  by job coaches or pursuant to subsection (14).
  991         (l) Fees for an annual evaluation of educational progress
  992  by a state-certified teacher under s. 1002.41(1)(f), if this
  993  option is chosen for a home education student.
  994         (m) Tuition and fees associated with programs offered by
  995  Voluntary Prekindergarten Education Program providers approved
  996  pursuant to s. 1002.55 and school readiness providers approved
  997  pursuant to s. 1002.88.
  998         (n) Fees for services provided at a center that is a member
  999  of the Professional Association of Therapeutic Horsemanship
 1000  International.
 1001         (o) Fees for services provided by a therapist who is
 1002  certified by the Certification Board for Music Therapists or
 1003  credentialed by the Art Therapy Credentials Board, Inc.
 1004         (p) Tuition and fees associated with enrollment in a
 1005  nationally or internationally recognized research-based training
 1006  program, for a child with a neurological disorder or brain
 1007  damage.
 1008         (q)Tuition and fees associated with a student’s
 1009  participation in classes or lessons relating to art, music, or
 1010  theater. The instructor of the classes or lessons must:
 1011         1.Hold a valid or expired Florida educator’s certificate
 1012  issued under s. 1012.56 in art, music, or drama;
 1013         2.Have 3 years of employment experience in art, music, or
 1014  theater, as demonstrated by employment records;
 1015         3.Hold a baccalaureate degree or higher from a
 1016  postsecondary educational institution with a major in music,
 1017  art, theater, or drama or related field; or
 1018         4.Hold a certification or national accreditation in music,
 1019  art, theater, or drama.
 1020         (r)Transportation expenses that may not exceed $750
 1021  annually necessary to meet the student’s educational needs under
 1022  this section.
 1023  
 1024  A service provider who receives payments pursuant to this
 1025  subsection may not share or refund any moneys from the McKay
 1026  Gardiner Scholarship with the parent or participating student
 1027  and may not issue rebates to such persons. A parent, student, or
 1028  service provider may not bill an insurance company, Medicaid, or
 1029  any other agency for the same services that are paid for with
 1030  McKay-Gardiner Scholarship funds. Funding provided pursuant to
 1031  this subsection for a child eligible for enrollment in the
 1032  Voluntary Prekindergarten Education Program constitutes funding
 1033  for the child under part V of this chapter, and no additional
 1034  funding may be provided for the child under part V.
 1035         (6) TERMS OF THE PROGRAM.—For purposes of continuity of
 1036  educational choice and program integrity:
 1037         (a)1. Program payments made by the state to an organization
 1038  for a McKay-Gardiner Scholarship under this section must
 1039  continue until:
 1040         a. A student’s parent does not renew program eligibility;
 1041         b. The organization determines that a student is not
 1042  eligible for program renewal;
 1043         c. The Commissioner of Education suspends or revokes
 1044  program participation or use of funds pursuant to subparagraph
 1045  (b)(1);
 1046         d. A student’s parent has forfeited participation in the
 1047  program for failure to comply with subsection (11);
 1048         e. A student enrolls in a public school; or
 1049         f. A student graduates from high school or attains 22 years
 1050  of age, whichever occurs first.
 1051         2. Reimbursements for program expenditures may continue
 1052  until the account balance is expended or the account is closed
 1053  pursuant to paragraph (b).
 1054         (b)1. The commissioner must close a student’s scholarship
 1055  account, and any remaining funds, including, but not limited to,
 1056  contributions made to the Stanley G. Tate Florida Prepaid
 1057  College Program or earnings from or contributions made to the
 1058  Florida College Savings Program using program funds pursuant to
 1059  paragraph (5)(f), revert to the state after:
 1060         a. Denial or revocation of program eligibility by the
 1061  commissioner for fraud or abuse, including, but not limited to,
 1062  the student or student’s parent accepting any payment, refund,
 1063  or rebate from a provider of services received pursuant to
 1064  subsection (5); however, a private school may discount tuition
 1065  if the private school deems it necessary;
 1066         b. Any period of 3 consecutive years after high school
 1067  completion or graduation during which the student has not been
 1068  enrolled in an eligible postsecondary educational institution or
 1069  a program offered by such an institution; or
 1070         c. Two consecutive fiscal years in which an account has
 1071  been inactive.
 1072         2. The commissioner must notify the parent and the
 1073  organization when a McKay-Gardiner Scholarship account is closed
 1074  and program funds revert to the state.
 1075         (7) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 1076         (a)By each April 1 and within 10 days after an individual
 1077  education plan meeting or a 504 accommodation plan is issued
 1078  under s. 504 of the Rehabilitation Act of 1973, a school
 1079  district shall notify the parent of the student of all options
 1080  available pursuant to this section, and shall inform the parent
 1081  of the availability of the department’s website for additional
 1082  information on McKay-Gardiner Scholarships.
 1083         (b)1. The parent of a student with a disability who does
 1084  not have an IEP or who seeks a reevaluation of an existing IEP
 1085  may request an IEP meeting and evaluation from the school
 1086  district in order to obtain or revise a matrix of services. The
 1087  district must accept the diagnosis, and consider the service
 1088  plan of the licensed professional providing the diagnosis
 1089  pursuant to sub-subparagraph (3)(a)3.a., during the development
 1090  of the IEP or provide in writing reasons for any changes or
 1091  disagreement with the licensed professional’s diagnosis and
 1092  service plan. The school district shall notify a parent who has
 1093  made a request for an IEP that the district is required to
 1094  complete the IEP and matrix of services within 30 days after
 1095  receiving notice of the parent’s request. The school district
 1096  shall conduct a meeting and develop an IEP and matrix of
 1097  services within 30 days after receipt of the parent’s request in
 1098  accordance with State Board of Education rule.
 1099         2.a. The school district must provide the student’s parent
 1100  and the department with the student’s matrix level within 10
 1101  calendar days after its completion.
 1102         b. A school district may change a matrix of services only
 1103  if the change is a result of an IEP reevaluation or to correct a
 1104  technical, typographical, or calculation error.
 1105         (c) For each student participating in the program who
 1106  chooses to participate in statewide, standardized assessments
 1107  under s. 1008.22 or the Florida Alternate Assessment, the school
 1108  district in which the student resides must notify the student
 1109  and his or her parent about the locations and times of all
 1110  statewide, standardized assessments.
 1111         (8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 1112  private school may be sectarian or nonsectarian and shall:
 1113         (a) Comply with all requirements for private schools
 1114  participating in state school choice scholarship programs
 1115  pursuant to s. 1002.421.
 1116         (b)1. Annually administer or make provision for students
 1117  participating in the program in grades 3 through 10 to take one
 1118  of the nationally norm-referenced tests identified by the
 1119  Department of Education or the statewide assessments
 1120  administered pursuant to s. 1008.22. This subparagraph does not
 1121  apply to students with disabilities for whom standardized
 1122  testing is not appropriate. A participating private school shall
 1123  report a student’s scores to the parent.
 1124         2. Administer the statewide assessments pursuant to s.
 1125  1008.22 if a private school chooses to offer the statewide
 1126  assessments. A participating private school may choose to offer
 1127  and administer the statewide assessments to all students who
 1128  attend the private school in grades 3 through 10 and must submit
 1129  a request in writing to the Department of Education by March 1
 1130  of each year in order to administer the statewide assessments in
 1131  the subsequent school year.
 1132  
 1133  If a private school fails to meet the requirements of this
 1134  subsection or s. 1002.421, the commissioner may determine that
 1135  the private school is ineligible to participate in the
 1136  scholarship program.
 1137         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 1138  shall:
 1139         (a) Comply with s. 1002.394(8)(a)-(g).
 1140         (b) Maintain on its website a list of approved providers as
 1141  required by s. 1002.66, eligible postsecondary educational
 1142  institutions, eligible private schools, and eligible
 1143  organizations and may identify or provide links to lists of
 1144  other approved providers.
 1145         (c) Require each organization to verify eligible
 1146  expenditures before the distribution of funds for any
 1147  expenditures made pursuant to paragraphs (5)(a) and (b). Review
 1148  of expenditures made for services specified in paragraphs
 1149  (5)(c)-(r) may be completed after the purchase is made.
 1150         (d) Investigate any written complaint of a violation of
 1151  this section by a parent, a student, a private school, a public
 1152  school, a school district, an organization, a provider, or
 1153  another appropriate party in accordance with the process
 1154  established under s. 1002.421.
 1155         (e) Require quarterly reports by an organization, which
 1156  must include, at a minimum, the number of students participating
 1157  in the program; the demographics of program participants; the
 1158  disability category of program participants; the matrix level of
 1159  services, if known; the program award amount per student; the
 1160  total expenditures for the purposes specified in subsection (5);
 1161  the types of providers of services to students; and any other
 1162  information deemed necessary by the department.
 1163         (f) Compare the list of students participating in the
 1164  program with the public school student enrollment lists,
 1165  Voluntary Prekindergarten Education Program enrollment lists,
 1166  and the list of students participating in school choice
 1167  scholarship programs established pursuant to this chapter before
 1168  each scholarship award is provided to the organization, and
 1169  subsequently throughout the school year, to avoid duplicate
 1170  payments and confirm program eligibility.
 1171         (g) Distribute each student’s scholarship funds on a
 1172  quarterly basis to the eligible nonprofit scholarship-funding
 1173  organization, to be deposited into the student’s account.
 1174         (10) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.—
 1175         (a) The Commissioner of Education:
 1176         1. May suspend or revoke program participation or use of
 1177  program funds by the student or participation or eligibility of
 1178  an organization, eligible postsecondary educational institution,
 1179  approved provider, or other party for a violation of this
 1180  section.
 1181         2. May determine the length of, and conditions for lifting,
 1182  a suspension or revocation specified in this subsection.
 1183         3. May recover unexpended program funds or withhold payment
 1184  of an equal amount of program funds to recover program funds
 1185  that were not authorized for use.
 1186         4. Shall deny or terminate program participation upon a
 1187  parent’s forfeiture of a McKay-Gardiner Scholarship pursuant to
 1188  subsection (11).
 1189         (b) In determining whether to suspend or revoke
 1190  participation or lift a suspension or revocation in accordance
 1191  with this subsection, the commissioner may consider factors that
 1192  include, but are not limited to, acts or omissions that led to a
 1193  previous suspension or revocation of participation in a state or
 1194  federal program or an education scholarship program; failure to
 1195  reimburse the organization for funds improperly received or
 1196  retained; failure to reimburse government funds improperly
 1197  received or retained; imposition of a prior criminal sanction
 1198  related to the person or entity or its officers or employees;
 1199  imposition of a civil fine or administrative fine, license
 1200  revocation or suspension, or program eligibility suspension,
 1201  termination, or revocation related to a person’s or entity’s
 1202  management or operation; or other types of criminal proceedings
 1203  in which the person or entity or its officers or employees were
 1204  found guilty of, regardless of adjudication, or entered a plea
 1205  of nolo contendere or guilty to, any offense involving fraud,
 1206  deceit, dishonesty, or moral turpitude.
 1207         (11) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 1208  PARTICIPATION.—A parent who applies for program participation
 1209  under this section is exercising his or her parental option to
 1210  determine the appropriate placement or services that best meet
 1211  the needs of his or her child.
 1212         (a) To satisfy or maintain program eligibility, including
 1213  eligibility to receive and spend program payments, the parent
 1214  must sign an agreement with the organization and annually submit
 1215  a sworn compliance statement to the organization to:
 1216         1. Affirm that the student is enrolled in a program that
 1217  meets regular school attendance requirements as provided in s.
 1218  1003.01(13)(b), (c), or (d).
 1219         2. Affirm that the program funds are used only for
 1220  authorized purposes serving the student’s educational needs, as
 1221  described in subsection (5).
 1222         3. Affirm that the parent is responsible for the education
 1223  of his or her student by, as applicable:
 1224         a. Requiring the student to take an assessment in
 1225  accordance with paragraph (8)(b);
 1226         b. Providing an annual evaluation in accordance with s.
 1227  1002.41(1)(f); or
 1228         c. Requiring the child to take any preassessments and
 1229  postassessments selected by the provider if the child is 4 years
 1230  of age and is enrolled in a program provided by an eligible
 1231  Voluntary Prekindergarten Education Program provider. This sub
 1232  subparagraph does not apply to a student with disabilities for
 1233  whom a preassessment and postassessment are not appropriate. A
 1234  participating provider shall report a student’s scores to the
 1235  parent.
 1236         4. Affirm that the student remains in good standing with
 1237  the provider or school if one of those options is selected by
 1238  the parent.
 1239         (b) The parent must file an application for initial program
 1240  participation with an organization by a date established by the
 1241  organization.
 1242         (c) The parent must enroll his or her child in a program
 1243  from a Voluntary Prekindergarten Education Program provider
 1244  authorized under s. 1002.55, a school readiness provider
 1245  authorized under s. 1002.88, or an eligible private school if
 1246  either option is selected by the parent.
 1247         (d) The parent must annually renew participation in the
 1248  program by a date set and format determined by the nonprofit
 1249  scholarship-funding organization in order for a student to be
 1250  eligible to receive funding. A student whose participation in
 1251  the program is not renewed may continue to spend scholarship
 1252  funds that are in his or her account from prior years unless the
 1253  account is closed pursuant to paragraph (6)(b). Notwithstanding
 1254  any changes to the student’s IEP, a student who was previously
 1255  eligible for participation in the program remains eligible to
 1256  apply for renewal. However, for a high-risk child to continue to
 1257  participate in the program in the school year after he or she
 1258  reaches 6 years of age, the child’s application for renewal of
 1259  program participation must contain documentation that the child
 1260  has a disability, other than high-risk status.
 1261         (e) The parent is responsible for procuring the services
 1262  necessary to educate the student. If a parent does not procure
 1263  the necessary educational services for the student and the
 1264  student’s account has been inactive for 2 consecutive fiscal
 1265  years, the student’s account must be closed pursuant to
 1266  paragraph (6)(b). When the student receives a McKay-Gardiner
 1267  Scholarship, the district school board is not obligated to
 1268  provide the student with a free, appropriate public education.
 1269  For purposes of s. 1003.57 and the Individuals with Disabilities
 1270  in Education Act, a participating student has only those rights
 1271  that apply to all other unilaterally, parentally placed
 1272  students, except that, when requested by the parent, school
 1273  district personnel must develop an individual education plan or
 1274  matrix level of services.
 1275         (f) The parent is responsible for all eligible expenses in
 1276  excess of the amount of the McKay-Gardiner Scholarship.
 1277         (g) The parent may not transfer any prepaid college plan or
 1278  college savings plan funds contributed pursuant to paragraph
 1279  (5)(f) to another beneficiary while the plan contains funds
 1280  contributed pursuant to this section.
 1281         (h) The parent may not receive a payment, refund, or rebate
 1282  from an approved provider of any services under this program.
 1283  
 1284  A participant who fails to comply with this subsection forfeits
 1285  the McKay-Gardiner Scholarship.
 1286         (12) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 1287  APPLICATION.—In order to participate in the scholarship program
 1288  created under this section, a charitable organization that seeks
 1289  to be a nonprofit scholarship-funding organization must submit
 1290  an application for initial approval or renewal to the Office of
 1291  Independent Education and Parental Choice no later than
 1292  September 1 of each year before the school year for which the
 1293  organization intends to offer scholarships.
 1294         (a) An application for initial approval must include:
 1295         1. A copy of the organization’s incorporation documents and
 1296  registration with the Division of Corporations of the Department
 1297  of State.
 1298         2. A copy of the organization’s Internal Revenue Service
 1299  determination letter as a s. 501(c)(3) not-for-profit
 1300  organization.
 1301         3. A description of the organization’s financial plan which
 1302  demonstrates sufficient funds to operate throughout the school
 1303  year.
 1304         4. A description of the geographic region that the
 1305  organization intends to serve and an analysis of the demand and
 1306  unmet need for eligible students in that area.
 1307         5. The organization’s organizational chart.
 1308         6. A description of the criteria and methodology that the
 1309  organization will use to evaluate scholarship eligibility.
 1310         7. A description of the application process, including
 1311  deadlines and any associated fees.
 1312         8. A description of the deadlines for attendance
 1313  verification and scholarship payments.
 1314         9. A copy of the organization’s policies on conflict of
 1315  interest and whistleblowers.
 1316         10. A copy of a surety bond or letter of credit to secure
 1317  the faithful performance of the obligations of the eligible
 1318  nonprofit scholarship-funding organization in accordance with
 1319  this section in an amount equal to 25 percent of the scholarship
 1320  funds anticipated for each school year or $100,000, whichever is
 1321  greater. The surety bond or letter of credit must specify that
 1322  any claim against the bond or letter of credit may be made only
 1323  by an eligible nonprofit scholarship-funding organization to
 1324  provide scholarships to and on behalf of students who would have
 1325  had scholarships funded if it were not for the diversion of
 1326  funds giving rise to the claim against the bond or letter of
 1327  credit.
 1328         (b) In addition to the information required under paragraph
 1329  (a), an application for renewal must include:
 1330         1. A single surety bond or letter of credit to secure the
 1331  faithful performance of the obligations of the eligible
 1332  nonprofit scholarship-funding organization in accordance with
 1333  this chapter equal to the amount of undisbursed funds held by
 1334  the organization based on the annual report submitted pursuant
 1335  to paragraph (13)(l). The amount of the surety bond or letter of
 1336  credit must be at least $100,000, but not more than $25 million.
 1337  The surety bond or letter of credit must specify that any claim
 1338  against the bond or letter of credit may be made only by an
 1339  eligible nonprofit scholarship-funding organization to provide
 1340  scholarships to and on behalf of students who would have had
 1341  scholarships funded if it were not for the diversion of funds
 1342  giving rise to the claim against the bond or letter of credit.
 1343         2. The organization’s completed Internal Revenue Service
 1344  Form 990 submitted no later than November 30 of the year before
 1345  the school year for which the organization intends to offer the
 1346  scholarships, notwithstanding the September 1 application
 1347  deadline.
 1348         3. A copy of any statutorily required audit which the
 1349  organization must provide to the Department of Education and
 1350  Auditor General.
 1351         4. An annual report that includes:
 1352         a. The number of students who completed applications, by
 1353  county and by grade.
 1354         b. The number of students who were approved for
 1355  scholarships, by county and by grade.
 1356         c. The number of students who received funding for
 1357  scholarships within each funding category, by county and by
 1358  grade.
 1359         d. The amount of funds received, the amount of funds
 1360  distributed in scholarships, and an accounting of remaining
 1361  funds and the obligation of those funds.
 1362         e. A detailed accounting of how the organization spent the
 1363  administrative funds allowable under paragraph (13)(f).
 1364         (c) In consultation with the Department of Revenue and the
 1365  Chief Financial Officer, the Office of Independent Education and
 1366  Parental Choice shall review the application. The Department of
 1367  Education shall notify the organization in writing of any
 1368  deficiencies within 30 days after receipt of the application and
 1369  allow the organization 30 days to correct any deficiencies.
 1370         (d) Within 30 days after receipt of the finalized
 1371  application by the Office of Independent Education and Parental
 1372  Choice, the Commissioner of Education shall recommend approval
 1373  or disapproval of the application to the State Board of
 1374  Education. The State Board of Education shall consider the
 1375  application and recommendation at the next scheduled meeting,
 1376  adhering to appropriate meeting notice requirements. If the
 1377  State Board of Education disapproves the organization’s
 1378  application, it must provide the organization with a written
 1379  explanation of that determination. The State Board of
 1380  Education’s action is not subject to chapter 120.
 1381         (e) If the State Board of Education disapproves the renewal
 1382  of a nonprofit scholarship-funding organization, the
 1383  organization must notify the affected eligible students and
 1384  parents of the decision within 15 days after disapproval. An
 1385  eligible student affected by the disapproval of an
 1386  organization’s participation remains eligible under this section
 1387  until the end of the school year in which the organization was
 1388  disapproved. The student must apply and be accepted by another
 1389  eligible nonprofit scholarship-funding organization for the
 1390  upcoming school year. The student must be given priority under
 1391  paragraph (13)(e).
 1392         (f) All remaining student accounts with funds held by a
 1393  nonprofit scholarship-funding organization that is disapproved
 1394  for participation must be transferred to the student’s account
 1395  established with the eligible nonprofit scholarship-funding
 1396  organization that accepts the student. All transferred funds
 1397  must be deposited by the eligible nonprofit scholarship-funding
 1398  organization receiving such funds into the student’s scholarship
 1399  account. All other remaining funds must be transferred to the
 1400  department. All transferred amounts received by any eligible
 1401  nonprofit scholarship-funding organization must be separately
 1402  disclosed in the annual financial audit required under
 1403  subsection (13).
 1404         (g) A nonprofit scholarship-funding organization is a
 1405  renewing organization if it was approved by the State Board of
 1406  Education for the 2021-2022 fiscal year or after and maintains
 1407  continuous approval and participation in the program. An
 1408  organization that chooses not to participate for 1 year or more
 1409  or is disapproved to participate for 1 year or more must submit
 1410  an application for initial approval in order to participate in
 1411  the program again.
 1412         (h) The State Board of Education shall adopt rules
 1413  providing guidelines for receiving, reviewing, and approving
 1414  applications for new and renewing nonprofit scholarship-funding
 1415  organizations. The rules must include a process for compiling
 1416  input and recommendations from the Chief Financial Officer, the
 1417  Department of Revenue, and the Department of Education. The
 1418  rules also must require that the nonprofit scholarship-funding
 1419  organization make a brief presentation to assist the State Board
 1420  of Education in its decision.
 1421         (i)A state university; or an independent nonprofit college
 1422  chartered in this state or independent nonprofit university
 1423  chartered in this state that are eligible to participate in the
 1424  William L. Boyd, IV, Effective Access to Student Education Grant
 1425  Program and are accredited by the Commission on Colleges of the
 1426  Southern Association of Colleges and Schools is exempt from the
 1427  initial or renewal application process, but must file a
 1428  registration notice with the Department of Education to be an
 1429  eligible nonprofit scholarship-funding organization. The State
 1430  Board of Education shall adopt rules that identify the procedure
 1431  for filing the registration notice with the department. The
 1432  rules must identify appropriate reporting requirements for
 1433  fiscal, programmatic, and performance accountability purposes
 1434  consistent with this section, but may not exceed the
 1435  requirements for eligible nonprofit scholarship-funding
 1436  organizations for charitable organizations.
 1437         (13) OBLIGATIONS OF ELIGIBLE SCHOLARSHIP-FUNDING
 1438  ORGANIZATIONS.—An organization may establish McKay-Gardiner
 1439  Scholarships for eligible students by:
 1440         (a) Complying with the requirements of s. 1002.394(11)(a)
 1441  (h).
 1442         (b) Receiving applications and determining student
 1443  eligibility in accordance with the requirements of this section.
 1444  When an application is approved, the organization must provide
 1445  the department with information on the student to enable the
 1446  department to determine student funding in accordance with
 1447  subsection (15).
 1448         (c) Providing scholarships on a first-come, first-served
 1449  basis, based upon the funds provided, and notifying parents of
 1450  their respective student’s receipt of a scholarship.
 1451         (d) Establishing a date by which a parent must confirm
 1452  initial or continuing participation in the program.
 1453         (e) Reviewing applications and awarding scholarship funds
 1454  to approved applicants using the following order of priority:
 1455         1.a.For the 2021-2022 school year, a student who received
 1456  a John M. McKay Scholarship for Students with Disabilities or a
 1457  Gardiner Scholarship in the 2020-2021 school year and meets the
 1458  eligibility requirements in subsection (3) is eligible for a
 1459  McKay-Gardiner Scholarship in the 2021-2022 school year.
 1460         b. For the 2022-2023 school year and thereafter, renewing
 1461  students from the previous school year under this section.
 1462         2. Students retained on the previous school year’s wait
 1463  list.
 1464         3. An eligible student who meets the criteria for an
 1465  initial award pursuant to subsection (3).
 1466  
 1467  An approved student who does not receive a scholarship must be
 1468  placed on the wait list in the order in which his or her
 1469  application is approved. An eligible student who does not
 1470  receive a scholarship within the fiscal year shall be retained
 1471  on the wait list for the subsequent year.
 1472         (f)Using an amount not to exceed 2.5 percent of the total
 1473  calculated amount of all scholarships awarded under this section
 1474  for administrative expenses associated with performing functions
 1475  authorized under this section.
 1476         (g) Verifying qualifying educational expenditures pursuant
 1477  to paragraph (9)(c) and requesting the return of any funds used
 1478  for unauthorized purposes.
 1479         (h) Returning any remaining program funds to the department
 1480  pursuant to paragraph (6)(b).
 1481         (i) Notifying the parent about the availability of, and the
 1482  requirements associated with requesting, an initial IEP or IEP
 1483  reevaluation every 3 years for each student participating in the
 1484  program.
 1485         (j) Documenting each student’s eligibility for a fiscal
 1486  year before granting a scholarship for that fiscal year pursuant
 1487  to paragraph (3)(b). A student is ineligible for a scholarship
 1488  if the student’s account has been inactive for 2 consecutive
 1489  fiscal years and the student’s account has been closed pursuant
 1490  to paragraph (6)(b).
 1491         (k) Submitting in a timely fashion any information
 1492  requested by the department relating to the program.
 1493         (l)Preparing and submitting quarterly reports to the
 1494  department pursuant to paragraph (9)(e).
 1495         (m) Notifying the department of any violation of this
 1496  section.
 1497         (14) TRANSITION-TO-WORK PROGRAM.—A student participating in
 1498  the McKay-Gardiner Scholarship Program who is at least 17 years
 1499  of age, but not older than 22 years of age, and who has not
 1500  received a high school diploma or certificate of completion is
 1501  eligible for enrollment in a transition-to-work program provided
 1502  by a private school or job coach. A transition-to-work program
 1503  must consist of academic instruction, work skills training, and
 1504  a volunteer or paid work experience.
 1505         (a) To offer a transition-to-work program, a participating
 1506  private school or job coach must:
 1507         1. Develop a transition-to-work program plan, which must
 1508  include a written description of the academic instruction and
 1509  work skills training students will receive and the goals for
 1510  students in the program.
 1511         2. Submit the transition-to-work program plan to the Office
 1512  of Independent Education and Parental Choice.
 1513         3. Develop a personalized transition-to-work program plan
 1514  for each student enrolled in the program. The student’s parent,
 1515  the student, and the school principal or job coach must sign the
 1516  personalized plan. The personalized plan must be submitted to
 1517  the Office of Independent Education and Parental Choice upon
 1518  request by the office.
 1519         4. Provide a release of liability form that must be signed
 1520  by the student’s parent, the student, and a representative of
 1521  the business offering the volunteer or paid work experience.
 1522         5. Assign a case manager or job coach to visit the
 1523  student’s job site on a weekly basis to observe the student and,
 1524  if necessary, provide support and guidance to the student.
 1525         6. Provide to the parent and student a quarterly report
 1526  that documents and explains the student’s progress and
 1527  performance in the program.
 1528         7. Maintain accurate attendance and performance records for
 1529  the student.
 1530         (b) A student enrolled in a transition-to-work program
 1531  must, at a minimum:
 1532         1. Receive 15 instructional hours that must include
 1533  academic instruction and work skills training.
 1534         2. Participate in 10 hours of work at the student’s
 1535  volunteer or paid work experience.
 1536         (c) To participate in a transition-to-work program, a
 1537  business must:
 1538         1. Maintain an accurate record of the student’s performance
 1539  and hours worked and provide the information to the private
 1540  school.
 1541         2. Comply with all state and federal child labor laws.
 1542         (15) FUNDING AND PAYMENT.—For the purposes of this
 1543  subsection, the term “student FTE” refers to how participating
 1544  students are calculated for the purposes of the scholarship
 1545  program allocation, which is equal to four quarterly scholarship
 1546  payments.
 1547         (a)The McKay-Gardiner scholarship is established for up to
 1548  50,000 student FTE for the 2021-2022 school year. For the 2022
 1549  2023 school year, and each year thereafter, the maximum number
 1550  of student FTE shall increase by 1.0 percent of the state’s
 1551  total public school exceptional student education student
 1552  enrollment, not including gifted students.
 1553         1. For a student who has a Level I to Level III matrix of
 1554  services or a doctor’s diagnosis, the calculated scholarship
 1555  amount for a student participating in the program must be based
 1556  upon the grade level and school district in which the student
 1557  would have been enrolled as 97.5 percent of the funds per
 1558  unweighted full-time equivalent in the Florida Education Finance
 1559  Program for a student in the basic exceptional student education
 1560  program pursuant to s. 1011.62(1)(c)1. and (e)1.c., plus a per
 1561  full-time equivalent share of funds for all categorical
 1562  programs, as funded in the General Appropriations Act, except
 1563  that for the exceptional student education guaranteed allocation
 1564  as provided in s. 1011.62(1)(e)1.c. and 2., the funds must be
 1565  allocated based on the school district’s average exceptional
 1566  student education guaranteed allocation funds per exceptional
 1567  student education full-time equivalent student.
 1568         2.For a student with a Level IV or Level V matrix of
 1569  services, the calculated scholarship amount must be based upon
 1570  the school district to which the student would have been
 1571  assigned as 97.5 percent of the funds per full-time equivalent
 1572  for the Level IV or Level V Exceptional Student Education
 1573  program pursuant to s. 1011.62(1)(c)2.a. or b., plus a per-full
 1574  time equivalent share of funds for all categorical programs, as
 1575  funded in the General Appropriations Act.
 1576         3.For a student with a 504 plan, the calculated
 1577  scholarship amount must be based upon the grade level and school
 1578  district to which the student would have been assigned as 97.5
 1579  percent of the funds per unweighted full-time equivalent in the
 1580  Florida Education Finance Program for a student in the basic
 1581  education program established pursuant to s. 1011.62(1)(c)1.,
 1582  plus a per-full-time equivalent share of funds for all
 1583  categorical programs, as funded in the General Appropriations
 1584  Act.
 1585         (b)At the time of each Florida Education Finance Program
 1586  student membership survey, the scholarship funding organization
 1587  shall report to the department student enrollment, student FTE,
 1588  and total award amounts by county, delineated by FEFP program,
 1589  and grade and matrix level for all students who are
 1590  participating in the McKay-Gardiner Scholarship Program.
 1591  Students with a 504 plan must be separately identified.
 1592         (c)Upon notification from an organization on July 1,
 1593  September 1, December 1, and February 1 that an application has
 1594  been approved for the program, the department shall verify that
 1595  the student is not prohibited from receiving a scholarship
 1596  pursuant to subsection (4). The organization must provide the
 1597  department with the documentation necessary to verify the
 1598  student’s participation.
 1599         (d) Upon verification, the department shall release the
 1600  student’s scholarship funds to the organization, to be deposited
 1601  into the student’s account in four equal amounts no later than
 1602  September 1, November 1, February 1, and April 1 of each school
 1603  year in which the scholarship is in force.
 1604         (e) Accrued interest in the student’s account is in
 1605  addition to, and not part of, the awarded funds. Program funds
 1606  include both the awarded funds and accrued interest.
 1607         (f) The organization may develop a system for payment of
 1608  benefits by funds transfer, including, but not limited to, debit
 1609  cards, electronic payment cards, or any other means of payment
 1610  which the department deems to be commercially viable or cost
 1611  effective. A student’s scholarship award may not be reduced for
 1612  debit card or electronic payment fees. Commodities or services
 1613  related to the development of such a system must be procured by
 1614  competitive solicitation unless they are purchased from a state
 1615  term contract pursuant to s. 287.056.
 1616         (g) Moneys received pursuant to this section do not
 1617  constitute taxable income to the qualified student or the parent
 1618  of the qualified student.
 1619         (16) OBLIGATIONS OF THE AUDITOR GENERAL.—
 1620         (a) The Auditor General shall review all audit reports
 1621  submitted pursuant to subsection (13). The Auditor General shall
 1622  request any significant items that were omitted in violation of
 1623  a rule adopted by the Auditor General. The organization shall
 1624  provide such items within 45 days after the date of the request.
 1625  If the scholarship-funding organization does not comply with the
 1626  Auditor General’s request, the Auditor General must notify the
 1627  Legislative Auditing Committee.
 1628         (b) At least once every 3 years, the Auditor General shall
 1629  conduct an operational audit of accounts and records of each
 1630  organization that participates in the program. As part of this
 1631  audit, the Auditor General, at a minimum, shall verify the total
 1632  number of students served and the eligibility of reimbursements
 1633  made by the organization and transmit that information to the
 1634  department. The Auditor General shall provide the commissioner
 1635  with a copy of each annual operational audit performed pursuant
 1636  to this subsection within 10 days after the audit is finalized.
 1637         (c) The Auditor General shall notify the department of any
 1638  organization that fails to comply with a request for
 1639  information.
 1640         (17) OBLIGATIONS RELATED TO APPROVED PROVIDERS.—The
 1641  Department of Health, the Agency for Persons with Disabilities,
 1642  and the Department of Education shall coordinate with an
 1643  organization to provide easy or automated access to lists of
 1644  licensed providers of services specified in paragraph (5)(c) to
 1645  ensure efficient administration of the program.
 1646         (18) LIABILITY.—The state is not liable for the awarding of
 1647  funds or for any use of funds awarded under this section.
 1648         (19) SCOPE OF AUTHORITY.—This section does not expand the
 1649  authority of the state, its officers, or any school district to
 1650  impose additional regulation on participating private schools,
 1651  independent postsecondary educational institutions, and private
 1652  providers beyond that reasonably necessary to enforce
 1653  requirements expressly set forth in this section.
 1654         (20) RULES.—The State Board of Education shall adopt rules
 1655  pursuant to ss. 120.536(1) and 120.54 to administer this
 1656  section.
 1657         Section 17. Section 1002.385, Florida Statutes, is
 1658  repealed.
 1659         Section 18. Section 1002.39, Florida Statutes, is repealed.
 1660         Section 19. Section 1002.394, Florida Statutes, is amended
 1661  to read:
 1662         1002.394 The Family Empowerment Scholarship Program.—
 1663         (1) PURPOSE.—The Family Empowerment Scholarship Program is
 1664  established to provide children of families in this state,
 1665  including those with which have limited financial resources,
 1666  with educational options to achieve success in their education.
 1667         (2) DEFINITIONS.—As used in this section, the term:
 1668         (a) “Approved provider” means a provider approved by the
 1669  department “Department” means the Department of Education.
 1670         (b) “Curriculum” means a complete course of study for a
 1671  particular content area or grade level, including any required
 1672  supplemental materials, teachers’ manuals, and associated online
 1673  instruction.
 1674         (c) “Department” means the Department of Education.
 1675         (d) “Direct certification list” means the certified list of
 1676  children who qualify for the food assistance program, the
 1677  Temporary Assistance for Needy Families Program, or the Food
 1678  Distribution Program on Indian Reservations provided to the
 1679  Department of Education by the Department of Children and
 1680  Families.
 1681         (e) “Eligible nonprofit scholarship-funding organization”
 1682  or “organization” means a state university, an independent
 1683  college or university that is eligible to participate in the
 1684  William L. Boyd, IV, Effective Access to Student Education Grant
 1685  Program located and chartered in this state which is not for
 1686  profit and is accredited by the Commission on Colleges of the
 1687  Southern Association of Colleges and Schools, or is a charitable
 1688  organization that: has the same meaning as provided in s.
 1689  1002.395(2)(f).
 1690         1. Is exempt from federal income tax pursuant to s.
 1691  501(c)(3) of the Internal Revenue Code;
 1692         2. Is a Florida entity formed under chapter 605, chapter
 1693  607, or chapter 617 and whose principal office is located in
 1694  this state; and
 1695         3. Complies with subsections (11) and (14).
 1696         (f) “Eligible postsecondary educational institution” means
 1697  a Florida College System institution; a state university; a
 1698  school district technical center; a school district adult
 1699  general education center; an independent college or university
 1700  that is eligible to participate in the William L. Boyd, IV,
 1701  Effective Access to Student Education Grant Program under s.
 1702  1009.89; or an accredited independent postsecondary educational
 1703  institution, as defined in s. 1005.02, which is licensed to
 1704  operate in this state under part III of chapter 1005.
 1705         (g)(c) “Eligible private school” means a private school as
 1706  defined in s. 1002.01 located in this state which offers an
 1707  education to students in any grade from Kindergarten through
 1708  grade 12 and:
 1709         1. Meets the requirements of ss. 1002.42 and 1002.421; and
 1710         2. Meets the applicable requirements imposed under this
 1711  chapter, if the private school participates in a scholarship
 1712  program under this chapter has the same meaning as provided in
 1713  s. 1002.395(2)(g).
 1714         (h) “Household income” has the same meaning as the term
 1715  “income” as defined in the Income Eligibility Guidelines for
 1716  free and reduced price meals under the National School Lunch
 1717  Program in 7 C.F.R. part 210 as published in the Federal
 1718  Register by the United States Department of Agriculture.
 1719         (i) “Inactive” means that no eligible expenditures have
 1720  been made from a student scholarship account funded pursuant to
 1721  this section.
 1722         (j) “Incident” means battery; harassment; hazing; bullying;
 1723  kidnapping; physical attack; robbery; sexual offenses,
 1724  harassment, assault, or battery; threat or intimidation; or
 1725  fighting at school, as defined by the department in accordance
 1726  with s. 1006.147(4).
 1727         (k) “Owner or operator” includes:
 1728         1. An owner, president, officer, or director of an eligible
 1729  nonprofit scholarship-funding organization or a person with
 1730  equivalent decisionmaking authority over an eligible nonprofit
 1731  scholarship-funding organization.
 1732         2. An owner, operator, superintendent, or principal of an
 1733  eligible private school or a person with equivalent
 1734  decisionmaking authority over an eligible private school.
 1735         (l)(d) “Parent” means a resident of this state who is a
 1736  parent, as defined in s. 1000.21.
 1737         (m)(e) “Program” means the Family Empowerment Scholarship
 1738  Program.
 1739         (n) “School” means any educational program or activity
 1740  conducted by a public K-12 educational institution, any school
 1741  related or school-sponsored program or activity, and riding on a
 1742  school bus as defined in s. 1006.25(1), including waiting at a
 1743  school bus stop.
 1744         (3) INITIAL SCHOLARSHIP ELIGIBILITY.—A student is eligible
 1745  for a Family Empowerment Scholarship under this section if the
 1746  student meets the following criteria:
 1747         (a)1. The student is on the direct certification list
 1748  pursuant to s. 1002.395(2)(c) or the student’s household income
 1749  level does not exceed 300 185 percent of the federal poverty
 1750  level or an adjusted maximum percent of the federal poverty
 1751  level established pursuant to paragraph (e); or
 1752         2. The student is:
 1753         a. Currently placed, or during the previous state fiscal
 1754  year was placed, in foster care or in out-of-home care as
 1755  defined in s. 39.01;
 1756         b.A sibling of a student who is participating in the
 1757  scholarship program under this subsection, if the student
 1758  resides in the same household as the sibling;
 1759         c. A sibling of a student who is participating in the
 1760  scholarship program under s. 1002.381, if the student resides in
 1761  the same household as the sibling and attends the same school;
 1762  or
 1763         d. Enrolled in a Florida public school in kindergarten
 1764  through grade 12 and reported an incident in accordance with
 1765  paragraph (7)(b)
 1766         3.The student’s household income level does not exceed 300
 1767  percent of the federal poverty level or an adjusted maximum
 1768  percent of the federal poverty level as established pursuant to
 1769  paragraph (e).
 1770  
 1771  A student who initially receives a scholarship based on
 1772  eligibility under this paragraph subparagraph 2. remains
 1773  eligible to participate until the student graduates from high
 1774  school or attains the age of 21 years, whichever occurs first,
 1775  regardless of the student’s household income level. A sibling of
 1776  a student who is participating in the scholarship program under
 1777  this subsection is eligible for a scholarship if the student
 1778  resides in the same household as the sibling.
 1779         (b)1. The student is eligible to enroll in kindergarten
 1780  through grade 12 in a public school in this state;
 1781         2. The student has spent the prior school year in
 1782  attendance at a Florida public school; or
 1783         3. Beginning with the 2020-2021 school year, the student
 1784  received a scholarship pursuant to s. 1002.395 during the
 1785  previous school year but did not receive a renewal scholarship
 1786  based solely on the eligible nonprofit scholarship-funding
 1787  organization’s lack of available funds after the organization
 1788  fully exhausts its efforts to use funds available for awards
 1789  under ss. 1002.395 and 1002.40(11)(i). Eligible nonprofit
 1790  scholarship-funding organizations with students who meet the
 1791  eligibility criterion of this subparagraph must annually notify
 1792  the department in a format and by a date established by the
 1793  department.
 1794  
 1795  For purposes of this paragraph, the term “prior school year in
 1796  attendance” means that the student was enrolled full time and
 1797  reported by a school district for funding during the preceding
 1798  October and February Florida Education Finance Program surveys
 1799  in kindergarten through grade 12, which includes time spent in a
 1800  Department of Juvenile Justice commitment program if funded
 1801  under the Florida Education Finance Program. However, a
 1802  dependent child of a member of the United States Armed Forces
 1803  who transfers to a school in this state from out of state or
 1804  from a foreign country due to a parent’s permanent change of
 1805  station orders or a foster child is exempt from the prior public
 1806  school attendance requirement under this paragraph, but must
 1807  meet the other eligibility requirements specified under this
 1808  section to participate in the program.
 1809         (c) The parent has applied to an eligible nonprofit
 1810  scholarship-funding organization to participate in the program
 1811  by a date set by the organization obtained acceptance for
 1812  admission of the student to a private school that is eligible
 1813  for the program under subsection (8), and the parent has
 1814  requested a scholarship from the Department of Education by a
 1815  date established by the department pursuant to paragraph (7)(e),
 1816  but no later than at least 60 days before the date of the first
 1817  scholarship payment. The application request must be
 1818  communicated directly to the organization department in a manner
 1819  that creates a written or electronic record of the application
 1820  request and the date of receipt of the application request. The
 1821  department must notify the school district of the parent’s
 1822  intent upon receipt of the parent’s request.
 1823         (d) The student is awarded a scholarship in accordance with
 1824  the following priority order:
 1825         1. An eligible student who received a Family Empowerment
 1826  Scholarship during the previous school year, or a Florida Tax
 1827  Credit Scholarship or Hope Scholarship during the 2020-2021
 1828  school year, and requested a renewal scholarship award.
 1829         2. An eligible student who meets the criteria for an
 1830  initial award under both paragraphs paragraph (a) and (b) and
 1831  was retained on the previous school year’s wait list
 1832  subparagraph (b)3.
 1833         3. An eligible student who meets the criteria for an
 1834  initial award under sub-subparagraph (a)2.a., sub-subparagraph
 1835  (a)2.b., sub-subparagraph (a)2.d., or paragraph (b) subparagraph
 1836  (b)2. and either subparagraph (a)1. or subparagraph (a)2.
 1837         4. An eligible student who meets the criteria for an
 1838  initial award under subparagraph (a)1. (b)1. and paragraph (b),
 1839  and the student’s household income level does not exceed 185
 1840  percent of the federal poverty level either subparagraph (a)1.
 1841  or subparagraph (a)2.
 1842         5. An eligible student who meets the criteria for an
 1843  initial award under subparagraph (a)1. (a)3. and, paragraph (b)
 1844  in priority order, either subparagraph (b)2. or subparagraph
 1845  (b)1.
 1846         6. An eligible student who meets the criteria for an
 1847  initial award under sub-subparagraph (a)2.c. and paragraph (b).
 1848  
 1849  An approved student who does not receive a scholarship must be
 1850  placed on the wait list in the order in which his or her
 1851  application is approved. An eligible student who does not
 1852  receive a scholarship within the fiscal year must be retained on
 1853  the wait list for the subsequent year.
 1854         (e) The student’s household income level does not exceed an
 1855  adjusted maximum percent of the federal poverty level that is
 1856  increased by 25 percent in the fiscal year following any fiscal
 1857  year in which more than 5 percent of the available scholarships
 1858  authorized under subsection (12)(11) have not been awarded.
 1859         (4) TERM OF SCHOLARSHIP.—For purposes of continuity of
 1860  educational choice and program integrity:
 1861         (a)1.Program payments made by the state to an organization
 1862  for a Family Empowerment Scholarship under this section must
 1863  continue until:
 1864         a. The parent does not renew program eligibility;
 1865         b. The organization determines that the student is not
 1866  eligible for program renewal;
 1867         c. The Commissioner of Education suspends or revokes
 1868  program participation or use of funds pursuant to subparagraph
 1869  (b)(1);
 1870         d. The student’s parent has forfeited participation in the
 1871  program for failure to comply with subsection (10);
 1872         e. The student enrolls in a public school; or
 1873         f. The student graduates from high school or attains 21
 1874  years of age, whichever occurs first. However, if a student
 1875  enters a Department of Juvenile Justice detention center for a
 1876  period of no more than 21 days, the student is not considered to
 1877  have returned to a public school for that purpose.
 1878         2. Reimbursements for program expenditures may continue
 1879  until the account balance is expended or the account is closed
 1880  pursuant to paragraph (b) For purposes of continuity of
 1881  educational choice, a Family Empowerment Scholarship shall
 1882  remain in force until the student returns to a public school,
 1883  graduates from high school, or reaches the age of 21, whichever
 1884  occurs first. A scholarship student who enrolls in a public
 1885  school or public school program is considered to have returned
 1886  to a public school for the purpose of determining the end of the
 1887  scholarship’s term. However, if a student enters a Department of
 1888  Juvenile Justice detention center for a period of no more than
 1889  21 days, the student is not considered to have returned to a
 1890  public school for that purpose.
 1891         (b)1.The commissioner shall close a student’s scholarship
 1892  account, and any remaining funds, including, but not limited to,
 1893  contributions made to the Stanley G. Tate Florida Prepaid
 1894  College Program or earnings from or contributions made to the
 1895  Florida College Savings Program using program funds pursuant to
 1896  paragraph (6)(e), revert to the state after:
 1897         a. Denial or revocation of program eligibility by the
 1898  commissioner for fraud or abuse, including, but not limited to,
 1899  the student or the student’s parent accepting any payment,
 1900  refund, or rebate in any manner from a provider of any services
 1901  received pursuant to subsection (6); however, a private school
 1902  may discount tuition if the private school deems it necessary;
 1903         b. Any period of 2 consecutive years after high school
 1904  completion or graduation during which the student has not been
 1905  enrolled in an eligible postsecondary educational institution or
 1906  a program offered by the institution; or
 1907         c. The account has been inactive for 2 consecutive fiscal
 1908  years prior to high school completion or graduation Upon
 1909  reasonable notice to the department and the school district, the
 1910  student’s parent may remove the student from the private school
 1911  and place the student in a public school in accordance with this
 1912  section.
 1913         2. The commissioner must notify the parent and the
 1914  organization when a Family Empowerment Scholarship account is
 1915  closed and program funds revert to the state
 1916         (c) Upon reasonable notice to the department, the student’s
 1917  parent may move the student from one participating private
 1918  school to another participating private school.
 1919         (5) SCHOLARSHIP PROHIBITIONS.—A student is not eligible for
 1920  a Family Empowerment Scholarship while he or she is:
 1921         (a) Enrolled in a public school, including, but not limited
 1922  to, the Florida School for the Deaf and the Blind, the College
 1923  Preparatory Boarding Academy, a developmental research school
 1924  authorized under s. 1002.32, or a charter school authorized
 1925  under this chapter;
 1926         (b) Enrolled in a school operating for the purpose of
 1927  providing educational services to youth in a Department of
 1928  Juvenile Justice commitment program;
 1929         (c) Receiving any other educational scholarship pursuant to
 1930  this chapter; or
 1931         (d) Participating in a home education program as defined in
 1932  s. 1002.01(1);
 1933         (e) Participating in a private tutoring program pursuant to
 1934  s. 1002.43; or
 1935         (f) Participating in a virtual school, correspondence
 1936  school, or distance learning program that receives state funding
 1937  pursuant to the student’s participation.
 1938         (6) AUTHORIZED USES OF PROGRAM FUNDS.—Program funds must be
 1939  used to meet the individual educational needs of an eligible
 1940  student and may be spent for the following purposes:
 1941         (a) Instructional materials, including school equipment and
 1942  supplies, and digital devices and Internet access to access
 1943  digital instructional materials.
 1944         (b) Curriculum.
 1945         (c) Tuition or fees associated with full-time or part-time
 1946  enrollment in any of the following:
 1947         1. A home education program, an eligible private school, an
 1948  eligible postsecondary educational institution, or a program
 1949  offered by the postsecondary institution;
 1950         2. A private tutoring program authorized under s. 1002.43,
 1951  a virtual program offered by a department-approved private
 1952  online provider that meets the provider qualifications specified
 1953  in s. 1002.45(2)(a), or a program offered by the Florida Virtual
 1954  School to a private paying student; or
 1955         3. An approved online course offered pursuant to s.
 1956  1003.499 or s. 1004.0961 or a private virtual school that meets
 1957  the requirements of s. 1002.421.
 1958         (d) Fees for nationally standardized, norm-referenced
 1959  achievement tests, Advanced Placement examinations, industry
 1960  certification examinations, assessments related to postsecondary
 1961  education, or other assessments.
 1962         (e) Contributions to the Stanley G. Tate Florida Prepaid
 1963  College Program pursuant to s. 1009.98 or the Florida College
 1964  Savings Program pursuant to s. 1009.981, for the benefit of the
 1965  eligible student.
 1966         (f) Contracted services provided by a public school or
 1967  school district, including classes. A student who receives
 1968  services under a contract under this paragraph is not considered
 1969  enrolled in a public school for eligibility purposes as
 1970  specified in subsection (5).
 1971         (g) Tuition and fees for part-time tutoring services
 1972  provided by a person who holds a valid Florida educator’s
 1973  certificate pursuant to s. 1012.56; a person who holds an
 1974  adjunct teaching certificate pursuant to s. 1012.57; a person
 1975  who has a bachelor’s degree or a graduate degree in the subject
 1976  area in which instruction is given; or a person who has
 1977  demonstrated a mastery of subject area knowledge pursuant to s.
 1978  1012.56(5) or as approved by the department. As used in this
 1979  paragraph, the term “part-time tutoring services” does not
 1980  qualify as regular school attendance as defined in s.
 1981  1003.01(13)(e).
 1982         (h) Fees for summer education programs.
 1983         (i) Fees for after-school education programs.
 1984         (j) Fees for an annual evaluation of educational progress
 1985  by a state-certified teacher under s. 1002.41(1)(f), if this
 1986  option is chosen for a home education student.
 1987         (k)Transportation expenses that may not exceed $750
 1988  annually necessary to meet the student’s educational needs under
 1989  this section.
 1990  
 1991  A provider of any services receiving payments pursuant to this
 1992  subsection may not share, refund, or rebate any moneys from the
 1993  Family Empowerment Scholarship with the parent or participating
 1994  student in any manner.
 1995         (7)(6) SCHOOL DISTRICT OBLIGATIONS.—
 1996         (a) By July 15, 2019, and by April 1 of each year
 1997  thereafter, a school district shall inform all households within
 1998  the district receiving free or reduced-priced meals under the
 1999  National School Lunch Act of their eligibility to apply to the
 2000  department for a Family Empowerment Scholarship. The form of
 2001  such notice shall be provided by the department, and the school
 2002  district shall include the provided form in any normal
 2003  correspondence with eligible households. Such notice is limited
 2004  to once a year.
 2005         (b) Upon receipt of a report of an incident, the school
 2006  principal, or his or her designee, shall provide a copy of the
 2007  report to the parent and investigate the incident to determine
 2008  if the incident must be reported as required by s. 1006.147(4).
 2009  Within 24 hours after receipt of the report, the principal or
 2010  his or her designee shall provide a copy of the report to the
 2011  parent of the alleged offender and to the superintendent. Upon
 2012  conclusion of the investigation or within 15 days after the
 2013  incident was reported, whichever occurs first, the school
 2014  district shall notify the parent of the program and offer the
 2015  parent an opportunity to request and receive a Family
 2016  Empowerment Scholarship.
 2017         (c) The school district in which a participating student
 2018  resides must notify the student and his or her parent about the
 2019  locations and times to take all statewide assessments under s.
 2020  1008.22 if the student chooses to participate in such
 2021  assessments. Upon the request of the department, a school
 2022  district shall coordinate with the department to provide to a
 2023  participating private school the statewide assessments
 2024  administered under s. 1008.22 and any related materials for
 2025  administering the assessments. For a student who participates in
 2026  the Family Empowerment Scholarship Program whose parent requests
 2027  that the student take the statewide assessments under s.
 2028  1008.22, the district in which the student attends a private
 2029  school shall provide locations and times to take all statewide
 2030  assessments. A school district is responsible for implementing
 2031  test administrations at a participating private school,
 2032  including the:
 2033         1. Provision of training for private school staff on test
 2034  security and assessment administration procedures;
 2035         2. Distribution of testing materials to a private school;
 2036         3. Retrieval of testing materials from a private school;
 2037         4. Provision of the required format for a private school to
 2038  submit information to the district for test administration and
 2039  enrollment purposes; and
 2040         5. Provision of any required assistance, monitoring, or
 2041  investigation at a private school.
 2042         (d)(c) Each school district must publish information about
 2043  the Family Empowerment Scholarship Program on the district’s
 2044  website homepage, which,. at a minimum, the published
 2045  information must include a website link to the Family
 2046  Empowerment Scholarship Program published on the Department of
 2047  Education website as well as a telephone number and e-mail that
 2048  students and parents may use to contact relevant personnel in
 2049  the school district to obtain information about the scholarship.
 2050         (8)(7) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 2051  shall:
 2052         (a) Annually verify the eligibility of nonprofit
 2053  scholarship-funding organizations that meet the requirements of
 2054  paragraph (2)(e).
 2055         (b)(a) Publish and update, as necessary, information on the
 2056  department website about the scholarship programs under this
 2057  chapter Family Empowerment Scholarship Program, including, but
 2058  not limited to, student eligibility criteria, parental
 2059  responsibilities, and relevant data.
 2060         (c)(b) Cross-check prior to each distribution of funds the
 2061  list of participating scholarship students with the public
 2062  school enrollment lists before each scholarship payment to avoid
 2063  duplication.
 2064         (d)(c) Maintain and publish a list of nationally norm
 2065  referenced tests identified for purposes of satisfying the
 2066  testing requirement in subparagraph (9)(c)1. (8)(c)1. The tests
 2067  must meet industry standards of quality in accordance with state
 2068  board rule.
 2069         (e)(d) Notify eligible nonprofit scholarship-funding
 2070  organizations of the deadlines for submitting the verified list
 2071  of students determined to be eligible for an initial or renewal
 2072  scholarship.
 2073         (f)(e)Distribute each student’s scholarship funds on a
 2074  quarterly basis to the eligible nonprofit scholarship-funding
 2075  organization, to be deposited into the student’s account
 2076  Establish deadlines for the receipt of initial applications and
 2077  renewal notifications in order to implement the priority order
 2078  for scholarship awards pursuant to paragraph (3)(d).
 2079         (g) Notify an eligible nonprofit scholarship-funding
 2080  organization of any of the organization’s or other eligible
 2081  nonprofit scholarship-funding organization’s identified students
 2082  who are receiving educational scholarships under this chapter.
 2083         (h)Issue a project grant award to a state university, to
 2084  which participating private schools must report the scores of
 2085  participating students on the nationally norm-referenced tests
 2086  or the statewide assessments administered by the private school
 2087  in grades 3 through 10. The project term is 2 years, and the
 2088  amount of the project is up to $250,000 per year. The project
 2089  grant award must be reissued in 2-year intervals in accordance
 2090  with this paragraph.
 2091         1. The state university must annually report to the
 2092  Department of Education on the student performance of
 2093  participating students:
 2094         a. On a statewide basis. The report shall also include, to
 2095  the extent possible, a comparison of scholarship students’
 2096  performance to the statewide student performance of public
 2097  school students with socioeconomic backgrounds similar to those
 2098  of students participating in the scholarship program. To
 2099  minimize costs and reduce time required for the state
 2100  university’s analysis and evaluation, the Department of
 2101  Education shall coordinate with the state university to provide
 2102  data in order to conduct analyses of matched students from
 2103  public school assessment data and calculate control group
 2104  student performance using an agreed-upon methodology; and
 2105         b. On an individual school basis. For the 2020-2021 school
 2106  year, the annual report must include student performance for
 2107  each participating private school in which at least 51 percent
 2108  of the total enrolled students in the private school
 2109  participated in the Florida Tax Credit Scholarship Program or
 2110  the Family Empowerment Scholarship Program. Beginning with the
 2111  2021-2022 school year, the annual report must include student
 2112  performance for each participating private school in which at
 2113  least 51 percent of the total enrolled students in the private
 2114  school participated in the Family Empowerment Scholarship
 2115  Program. The report shall be according to each participating
 2116  private school, and for participating students, in which there
 2117  are at least 30 participating students who have scores for tests
 2118  administered. If the state university determines that the 30
 2119  participating-student cell size may be reduced without
 2120  disclosing personally identifiable information, as described in
 2121  34 C.F.R. s. 99.12, of a participating student, the state
 2122  university may reduce the participating-student cell size, but
 2123  the cell size may not be reduced to less than 10 participating
 2124  students. The department shall provide each private school’s
 2125  prior school year student enrollment information to the state
 2126  university no later than June 15 of each year, or as requested
 2127  by the state university.
 2128         2. The sharing and reporting of student performance data
 2129  under this paragraph must be in accordance with the requirements
 2130  of ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g, the Family
 2131  Educational Rights and Privacy Act, and the applicable rules and
 2132  regulations issued pursuant thereto, and must be for the sole
 2133  purpose of creating the annual report required by subparagraph
 2134  1. All parties must preserve the confidentiality of such
 2135  information as required by law. The annual report may not
 2136  disaggregate data to a level that will identify individual
 2137  participating schools, except as required under sub-subparagraph
 2138  1.b., or disclose the academic level of individual students.
 2139         3. The annual report required by subparagraph 1. must be
 2140  published by the Department of Education on its website.
 2141         (i) Maintain on its website a list of approved providers,
 2142  including eligible postsecondary educational institutions,
 2143  eligible private schools, and organizations. The department may
 2144  identify or provide links to lists of other approved providers.
 2145         (j) Require each organization to verify eligible
 2146  expenditures before the distribution of funds for any
 2147  expenditures made pursuant to paragraphs (6)(a) and (b). Review
 2148  of expenditures made for services specified in paragraphs
 2149  (6)(c)-(k) may be completed after the purchase is made.
 2150         (k) Require quarterly reports by an eligible nonprofit
 2151  scholarship-funding organization regarding the overall number of
 2152  students participating in the scholarship program, the number of
 2153  home education students participating in the scholarship
 2154  program, the number of students attending a private school
 2155  participating in the scholarship program, the private schools at
 2156  which the students are enrolled, and other information the
 2157  department deems necessary.
 2158         (l) Provide a process to match the direct certification
 2159  list with the scholarship application data submitted by any
 2160  nonprofit scholarship-funding organization eligible to receive
 2161  the 2.5 percent administrative allowance under paragraph
 2162  (11)(k).
 2163         (m) Contract with an independent entity to provide an
 2164  annual evaluation of the program by:
 2165         1. Reviewing the school bullying prevention education
 2166  program, school climate, and code of student conduct of each
 2167  public school from which 10 or more students transferred to
 2168  another public school or private school using the Hope
 2169  Scholarship or Family Empowerment Scholarship to determine areas
 2170  in the school or school district procedures involving reporting,
 2171  investigating, and communicating a parent’s and student’s rights
 2172  which are in need of improvement. At a minimum, the review must
 2173  include:
 2174         a. An assessment of the investigation time and quality of
 2175  the response of the school and the school district.
 2176         b. An assessment of the effectiveness of communication
 2177  procedures with the students involved in an incident, the
 2178  students’ parents, and the school and school district personnel.
 2179         c. An analysis of school incident and discipline data.
 2180         d. The challenges and obstacles relating to implementing
 2181  recommendations from the review.
 2182         2. Reviewing the school bullying prevention education
 2183  program, school climate, and code of student conduct of each
 2184  public school to which a student transferred if the student was
 2185  from a school identified in subparagraph 1. in order to identify
 2186  best practices and make recommendations to the public school at
 2187  which the incidents occurred.
 2188         3. Surveying the parents of participating students to
 2189  determine academic, safety, and school climate satisfaction and
 2190  to identify any challenges to or obstacles in addressing an
 2191  incident or relating to the use of the scholarship.
 2192         (n) Investigate any written complaint of a violation of
 2193  this section by a parent, a student, a private school, a public
 2194  school, a school district, an organization, a provider, or
 2195  another appropriate party in accordance with the process
 2196  established under s. 1002.421.
 2197         (9)(8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—To be
 2198  eligible to participate in the Family Empowerment Scholarship
 2199  Program, a private school may be sectarian or nonsectarian and
 2200  must:
 2201         (a) Comply with all requirements for private schools
 2202  participating in state school choice scholarship programs
 2203  pursuant to s. 1002.421.
 2204         (b) Provide to the organization department all
 2205  documentation required for a student’s participation, including
 2206  the private school’s and student’s fee schedules, at least 30
 2207  days before any quarterly scholarship payment is made for the
 2208  student pursuant to paragraph (12)(f) (11)(f). A student is not
 2209  eligible to receive a quarterly scholarship payment if the
 2210  private school fails to meet this deadline.
 2211         (c)1. Annually administer or make provision for students
 2212  participating in the program in grades 3 through 10 to take one
 2213  of the nationally norm-referenced tests that are identified by
 2214  the department pursuant to paragraph (8)(d) (7)(c) or to take
 2215  the statewide assessments pursuant to s. 1008.22. Students with
 2216  disabilities for whom standardized testing is not appropriate
 2217  are exempt from this requirement. A participating private school
 2218  shall report a student’s scores to his or her parent. By August
 2219  15 of each year, a participating private school must report the
 2220  scores of all participating students to a state university as
 2221  described in paragraph (8)(h) s. 1002.395(9)(f).
 2222         2. Administer the statewide assessments pursuant to s.
 2223  1008.22 if the private school chooses to offer the statewide
 2224  assessments. A participating private school may choose to offer
 2225  and administer the statewide assessments to all students who
 2226  attend the private school in grades 3 through 10 and must submit
 2227  a request in writing to the department by March 1 of each year
 2228  in order to administer the statewide assessments in the
 2229  subsequent school year.
 2230  
 2231  If a private school fails to meet the requirements of this
 2232  subsection or s. 1002.421, the commissioner may determine that
 2233  the private school is ineligible to participate in the
 2234  scholarship program.
 2235         (10)(9) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 2236  PARTICIPATION.—A parent who applies for a Family Empowerment
 2237  Scholarship is exercising his or her parental option to
 2238  determine the appropriate placement or the services that best
 2239  meets the needs of his or her child place his or her child in a
 2240  private school.
 2241         (a) To satisfy or maintain program eligibility, including
 2242  eligibility to receive and spend program payments, the parent
 2243  must sign an agreement with the organization and annually submit
 2244  a sworn compliance statement to the organization to:
 2245         1. Affirm that the student is enrolled in a program that
 2246  meets regular school attendance requirements as provided in s.
 2247  1003.01(13)(b)-(e).
 2248         2. Affirm that the program funds are used only for
 2249  authorized purposes serving the student’s educational needs, as
 2250  described in subsection (6).
 2251         3. Affirm that the parent is responsible for the education
 2252  of his or her student by, as applicable:
 2253         a. Requiring the student to take an assessment in
 2254  accordance with paragraph (9)(c); or
 2255         b. Providing an annual evaluation in accordance with s.
 2256  1002.41(1)(f).
 2257         4. Affirm that the student remains in good standing with
 2258  the provider or school if those options are selected by the
 2259  parent The parent must select the private school and apply for
 2260  the admission of his or her student.
 2261         (b) The parent must request the scholarship at least 60
 2262  days before the date of the first scholarship payment.
 2263         (c)The parent must inform the applicable school district
 2264  when the parent withdraws his or her student from a public
 2265  school to attend an eligible private school.
 2266         (d) Any student participating in the program must remain in
 2267  attendance throughout the school year unless excused by the
 2268  school for illness or other good cause.
 2269         (c)(e)If Before enrolling in a private school, a student
 2270  and his or her parent or guardian must meet with the private
 2271  school’s principal or the principal’s designee to review the
 2272  school’s academic programs and policies, customized educational
 2273  programs, code of student conduct, and attendance policies.
 2274         (d)(f) The parent shall ensure that a the student
 2275  participating in the scholarship program and enrolled in a
 2276  private school takes the norm-referenced assessment offered by
 2277  the private school. The parent may also choose to have the
 2278  student participate in the statewide assessments pursuant to
 2279  paragraph (9)(c) (6)(b).
 2280         (e)(g) If the parent requests that the student
 2281  participating in the program take all statewide assessments
 2282  required pursuant to s. 1008.22, the parent is responsible for
 2283  transporting the student to the assessment site designated by
 2284  the school district.
 2285         (h)Upon receipt of a scholarship warrant, the parent to
 2286  whom the warrant is issued must restrictively endorse the
 2287  warrant to the private school for deposit into the private
 2288  school’s account. The parent may not designate any entity or
 2289  individual associated with the participating private school as
 2290  the parent’s attorney in fact to endorse a scholarship warrant.
 2291  A participant who fails to comply with this paragraph forfeits
 2292  the scholarship.
 2293         (f)(i) The parent must annually renew participation in the
 2294  program by the date established and in a format determined by
 2295  the organization department pursuant to paragraph (7)(e). A
 2296  student whose participation in the program is not renewed may
 2297  continue to spend scholarship funds that are in his or her
 2298  account from prior years unless the account must be closed
 2299  pursuant to paragraph (4)(b).
 2300         (g)The parent is responsible for procuring the services
 2301  necessary to educate the student. If a parent does not procure
 2302  the necessary educational services for the student and the
 2303  student’s account has been inactive for 2 consecutive fiscal
 2304  years, the student is ineligible and the student’s account must
 2305  be closed pursuant to paragraph (4)(b).
 2306         (h)The parent is responsible for all eligible expenses in
 2307  excess of the Family Empowerment Scholarship.
 2308         (i)The parent may not transfer any prepaid college plan or
 2309  college savings plan funds contributed pursuant to paragraph
 2310  (6)(e) to another beneficiary while the plan contains funds
 2311  contributed pursuant to this section.
 2312         (j)The parent may not receive a payment, refund, or rebate
 2313  from an approved provider of any services under this program.
 2314  
 2315  A participant who fails to comply with this subsection forfeits
 2316  the Family Empowerment Scholarship.
 2317         (11)(10) OBLIGATIONS OF ELIGIBLE SCHOLARSHIP-FUNDING
 2318  ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 2319  organization:
 2320         (a) Must comply with the antidiscrimination provisions of
 2321  42 U.S.C. s. 2000d.
 2322         (b) Must comply with the following background check
 2323  requirements:
 2324         1. All owners and operators as defined in subparagraph
 2325  (2)(k)1., before employment or engagement to provide services,
 2326  are subject to a level 2 background screening as provided under
 2327  chapter 435. The fingerprints for the background screening must
 2328  be electronically submitted to the Department of Law Enforcement
 2329  and can be taken by an authorized law enforcement agency or by
 2330  an employee of the eligible nonprofit scholarship-funding
 2331  organization or a private company who is trained to take
 2332  fingerprints. However, the complete set of fingerprints of an
 2333  owner or operator may not be taken by the owner or operator. The
 2334  results of the state and national criminal history check must be
 2335  provided to the Department of Education for screening under
 2336  chapter 435. The cost of the background screening may be borne
 2337  by the eligible nonprofit scholarship-funding organization or
 2338  the owner or operator.
 2339         2. Every 5 years following employment or engagement to
 2340  provide services or association with an eligible nonprofit
 2341  scholarship-funding organization, each owner or operator must
 2342  meet level 2 screening standards as described in s. 435.04, at
 2343  which time the nonprofit scholarship-funding organization shall
 2344  request the Department of Law Enforcement to forward the
 2345  fingerprints to the Federal Bureau of Investigation for level 2
 2346  screening. If the fingerprints of an owner or operator are not
 2347  retained by the Department of Law Enforcement under subparagraph
 2348  3., the owner or operator must electronically file a complete
 2349  set of fingerprints with the Department of Law Enforcement. Upon
 2350  submission of fingerprints for this purpose, the eligible
 2351  nonprofit scholarship-funding organization shall request that
 2352  the Department of Law Enforcement forward the fingerprints to
 2353  the Federal Bureau of Investigation for level 2 screening, and
 2354  the fingerprints must be retained by the Department of Law
 2355  Enforcement under subparagraph 3.
 2356         3. Fingerprints submitted to the Department of Law
 2357  Enforcement as required by this paragraph must be retained by
 2358  the Department of Law Enforcement in a manner approved by rule
 2359  and entered in the statewide automated biometric identification
 2360  system authorized by s. 943.05(2)(b). The fingerprints must
 2361  continue to be available for all purposes and uses authorized
 2362  for arrest fingerprints entered in the statewide automated
 2363  biometric identification system pursuant to s. 943.051.
 2364         4. The Department of Law Enforcement shall search all
 2365  arrest fingerprints received under s. 943.051 against the
 2366  fingerprints retained in the statewide automated biometric
 2367  identification system under subparagraph 3. Any arrest record
 2368  that is identified with an owner’s or operator’s fingerprints
 2369  must be reported to the Department of Education. The Department
 2370  of Education shall participate in this search process by paying
 2371  an annual fee to the Department of Law Enforcement and by
 2372  informing the Department of Law Enforcement of any change in the
 2373  employment, engagement, or association status of the owners or
 2374  operators whose fingerprints are retained under subparagraph 3.
 2375  The Department of Law Enforcement shall adopt a rule setting the
 2376  amount of the annual fee to be imposed upon the Department of
 2377  Education for performing these services and establishing the
 2378  procedures for the retention of owner or operator fingerprints
 2379  and the dissemination of search results. The fee may be borne by
 2380  the owner or operator of the nonprofit scholarship-funding
 2381  organization.
 2382         5. A nonprofit scholarship-funding organization whose owner
 2383  or operator fails the level 2 background screening is not
 2384  eligible to provide scholarships under this section.
 2385         6. A nonprofit scholarship-funding organization whose owner
 2386  or operator in the last 7 years has filed for personal
 2387  bankruptcy or corporate bankruptcy in a corporation of which he
 2388  or she owned more than 20 percent is not eligible to provide
 2389  scholarships under this section.
 2390         7. In addition to the offenses listed in s. 435.04, a
 2391  person required to undergo background screening pursuant to this
 2392  part or authorizing statutes may not have an arrest awaiting
 2393  final disposition for, must not have been found guilty of, or
 2394  entered a plea of nolo contendere to, regardless of
 2395  adjudication, and must not have been adjudicated delinquent, and
 2396  the record must not have been sealed or expunged for, any of the
 2397  following offenses or any similar offense of another
 2398  jurisdiction:
 2399         a. Any authorizing statutes, if the offense was a felony.
 2400         b. This chapter, if the offense was a felony.
 2401         c. Section 409.920, relating to Medicaid provider fraud.
 2402         d. Section 409.9201, relating to Medicaid fraud.
 2403         e. Section 741.28, relating to domestic violence.
 2404         f. Section 817.034, relating to fraudulent acts through
 2405  mail, wire, radio, electromagnetic, photoelectronic, or
 2406  photooptical systems.
 2407         g. Section 817.234, relating to false and fraudulent
 2408  insurance claims.
 2409         h. Section 817.505, relating to patient brokering.
 2410         i. Section 817.568, relating to criminal use of personal
 2411  identification information.
 2412         j. Section 817.60, relating to obtaining a credit card
 2413  through fraudulent means.
 2414         k. Section 817.61, relating to fraudulent use of credit
 2415  cards, if the offense was a felony.
 2416         l. Section 831.01, relating to forgery.
 2417         m. Section 831.02, relating to uttering forged instruments.
 2418         n. Section 831.07, relating to forging bank bills, checks,
 2419  drafts, or promissory notes.
 2420         o. Section 831.09, relating to uttering forged bank bills,
 2421  checks, drafts, or promissory notes.
 2422         p. Section 831.30, relating to fraud in obtaining medicinal
 2423  drugs.
 2424         q. Section 831.31, relating to the sale, manufacture,
 2425  delivery, or possession with the intent to sell, manufacture, or
 2426  deliver any counterfeit controlled substance, if the offense was
 2427  a felony.
 2428         (c) May not have an owner or operator who owns or operates
 2429  an eligible private school that is participating in the
 2430  scholarship program.
 2431         (d) Shall establish and maintain separate accounts for each
 2432  eligible student. For each account, the organization must
 2433  maintain a record of accrued interest that is retained in the
 2434  student’s account and available only for authorized program
 2435  expenditures.
 2436         (e) May not restrict or reserve scholarships for use at a
 2437  particular private school.
 2438         (f) Must provide to the Auditor General and the Department
 2439  of Education a report on the results of an annual financial
 2440  audit of its accounts and records conducted by an independent
 2441  certified public accountant in accordance with auditing
 2442  standards generally accepted in the United States, government
 2443  auditing standards, and rules promulgated by the Auditor
 2444  General. The audit report must include a report on financial
 2445  statements presented in accordance with generally accepted
 2446  accounting principles. Audit reports must be provided to the
 2447  Auditor General and the Department of Education within 180 days
 2448  after completion of the eligible nonprofit scholarship-funding
 2449  organization’s fiscal year. The Auditor General shall review all
 2450  audit reports submitted pursuant to this paragraph. The Auditor
 2451  General shall request any significant items that were omitted in
 2452  violation of a rule adopted by the Auditor General. The items
 2453  must be provided within 45 days after the date of the request.
 2454  If the scholarship-funding organization does not comply with the
 2455  Auditor General’s request, the Auditor General shall notify the
 2456  Legislative Auditing Committee.
 2457         (g)1.a. Must use agreed-upon procedures that uniformly
 2458  apply to all private schools and determine, at a minimum,
 2459  whether the private school has been verified as eligible by the
 2460  Department of Education under s. 1002.421; has an adequate
 2461  accounting system, system of financial controls, and process for
 2462  deposit and classification of scholarship funds; and has
 2463  properly expended scholarship funds for education-related
 2464  expenses.
 2465         b.Must participate in a joint review of the agreed-upon
 2466  procedures and guidelines under sub-subparagraph a., by February
 2467  of each biennium, if the scholarship-funding organization
 2468  provided more than $250,000 in scholarship funds to an eligible
 2469  private school under this chapter during the state fiscal year
 2470  preceding the biennial review. If the procedures and guidelines
 2471  are revised, the revisions must be provided to private schools
 2472  and the Commissioner of Education by March 15 of the year in
 2473  which the revisions were completed. The revised agreed-upon
 2474  procedures take effect the subsequent school year.
 2475         c.Must monitor the compliance of a private school with s.
 2476  1002.421(1)(q) if the scholarship-funding organization provided
 2477  the majority of the scholarship funding to the school. For each
 2478  private school subject to s. 1002.421(1)(q), the appropriate
 2479  scholarship-funding organization shall annually notify the
 2480  Commissioner of Education by October 30 of:
 2481         (I)A private school’s failure to submit a report required
 2482  under s. 1002.421(1)(q); or
 2483         (II)Any material exceptions set forth in the report
 2484  required under s. 1002.421(1)(q).
 2485         2.Must seek input from the accrediting associations that
 2486  are members of the Florida Association of Academic Nonpublic
 2487  Schools and the Department of Education when conducting a joint
 2488  review of the procedures and guidelines under sub-subparagraph
 2489  1.b.
 2490         (h) Must establish a date by which the parent of a
 2491  participating student must confirm continuing participation in
 2492  the program.
 2493         (i)(a) Shall verify the household income level of students
 2494  pursuant to subparagraph (3)(a)1. and submit the verified list
 2495  of students and related documentation to the department.
 2496         (j)(b) Shall award initial and renewal scholarships to
 2497  eligible students in priority order pursuant to subsection (3)
 2498  and notify parents of their receipt of a scholarship paragraph
 2499  (3)(d). The eligible nonprofit scholarship-funding organization
 2500  shall implement the deadlines established by the department
 2501  pursuant to paragraphs (7)(d) and (e).
 2502         (k)(c) May, from eligible contributions received pursuant
 2503  to s. 1002.395(6)(j)1., use an amount not to exceed 2.5 1
 2504  percent of the total amount of all scholarships awarded under
 2505  this section for administrative expenses associated with
 2506  performing functions under this section, if the organization has
 2507  operated as an eligible nonprofit scholarship-funding
 2508  organization for at least the preceding 3 fiscal years and did
 2509  not have any findings of material weakness or material
 2510  noncompliance in its most recent audit performed pursuant to
 2511  paragraph (f). Such administrative expense amount is considered
 2512  within the 3 percent limit on the total amount an organization
 2513  may use to administer scholarships under this chapter.
 2514         (l) Must verify qualifying educational expenditures
 2515  pursuant to the requirement of paragraph (8)(j) and must request
 2516  the return of any funds used for unauthorized purposes.
 2517         (m) Must return any remaining program funds to the
 2518  department pursuant to paragraph (4)(b).
 2519         (n) Must document each scholarship student’s eligibility
 2520  pursuant to subsection (3) for a fiscal year before granting a
 2521  scholarship for that fiscal year. A student is ineligible for a
 2522  scholarship if the student’s account has been inactive for 2
 2523  fiscal years and the student’s account has been closed pursuant
 2524  to paragraph (4)(b).
 2525         (o) Must allow a student who meets the requirements of
 2526  subparagraph (3)(a)2. or a dependent child of a parent who is a
 2527  member of the United States Armed Forces to apply for a
 2528  scholarship at any time.
 2529         (p)(d) Must, in a timely manner, submit any information
 2530  requested by the department relating to the scholarship under
 2531  this section.
 2532         (q) Must establish a date by which the parent of a
 2533  participating student must confirm continuing participation in
 2534  the program.
 2535         (r) Must prepare and submit quarterly reports to the
 2536  department pursuant to paragraph (8)(k).
 2537         (s)(e) Must notify the department about any violation of
 2538  this section by a parent or a private school.
 2539         (12)(11) SCHOLARSHIP FUNDING AND PAYMENT.—For the purposes
 2540  of this subsection, the term “student FTE” refers to how
 2541  participating students are calculated for the purposes of the
 2542  scholarship program allocation, which is equal to four quarterly
 2543  scholarship payments.
 2544         (a) The scholarship is established for up to 175,000 18,000
 2545  student FTE for students annually beginning in the 2021-2022
 2546  2019-2020 school year. A student who received a Florida Tax
 2547  Credit Scholarship or a Hope Scholarship in the 2020-2021 school
 2548  year and who meets the eligibility requirements in subsection
 2549  (3) for the 2021-2022 school year is eligible for a Family
 2550  Empowerment Scholarship in the 2021-2022 school year. Beginning
 2551  in the 2022-2023 2020-2021 school year, and each year
 2552  thereafter, the maximum number of student FTE students
 2553  participating in the scholarship program under this section
 2554  shall annually increase by 1.0 percent of the state’s total
 2555  public school student enrollment.
 2556         (b) The scholarship amount provided to a student for any
 2557  single school year shall be for tuition and fees for an eligible
 2558  private school, not to exceed annual limits, which shall be
 2559  determined in accordance with this paragraph. The calculated
 2560  scholarship amount for a student participating in the program
 2561  must to attend an eligible private school shall be based upon
 2562  the grade level and school district in which the student was
 2563  assigned as 97.5 95 percent of the funds per unweighted full
 2564  time equivalent in the Florida Education Finance Program for a
 2565  student in the basic program established pursuant to s.
 2566  1011.62(1)(c)1., plus a per-full-time equivalent share of funds
 2567  for all categorical programs, as provided in the General
 2568  Appropriations Act except for the Exceptional Student Education
 2569  Guaranteed Allocation.
 2570         (c) As an alternative, a student who is eligible for a
 2571  Family Empowerment Scholarship is eligible for a transportation
 2572  award limited to $750 annually necessary to meet the student’s
 2573  educational needs under this section, if the student enrolls in
 2574  a Florida public school that is outside the school district in
 2575  which the student resides or is enrolled in a lab school as
 2576  defined in s. 1002.32. These students do not count against the
 2577  175,000 student FTE cap established in paragraph (a) The amount
 2578  of the Family Empowerment Scholarship shall be the calculated
 2579  amount or the amount of the private school’s tuition and fees,
 2580  whichever is less. The amount of any assessment fee required by
 2581  the participating private school may be paid from the total
 2582  amount of the scholarship.
 2583         (d) At the time of each Florida Education Finance Program
 2584  student membership survey, the scholarship-funding organization
 2585  shall report to the department student enrollment, student FTE,
 2586  and total award amounts by county, delineated by the FEFP
 2587  program, and grade for The school district shall report all
 2588  students who are participating in attending a private school
 2589  under this program. The students attending private schools on
 2590  Family Empowerment Scholarships shall be reported separately
 2591  from other students reported for purposes of the Florida
 2592  Education Finance Program.
 2593         (e) Upon Following notification from the organization on
 2594  July 1, September 1, December 1, and or February 1 that an
 2595  application has been approved for the program of the number of
 2596  program participants, the department shall verify that the
 2597  student is not prohibited from receiving a scholarship pursuant
 2598  to subsection (5). The organization must provide the department
 2599  with the documentation necessary to verify the student’s
 2600  participation transfer, from general revenue funds only, the
 2601  amount calculated pursuant to paragraph (b) to a separate
 2602  account for the scholarship program for quarterly disbursement
 2603  to parents of participating students. For a student exiting a
 2604  Department of Juvenile Justice commitment program who chooses to
 2605  participate in the scholarship program, the amount of the Family
 2606  Empowerment Scholarship calculated pursuant to paragraph (b)
 2607  must be transferred from the school district in which the
 2608  student last attended a public school before commitment to the
 2609  Department of Juvenile Justice. When a student enters the
 2610  scholarship program, the department must receive all
 2611  documentation required for the student’s participation,
 2612  including the private school’s and the student’s fee schedules,
 2613  at least 30 days before the first quarterly scholarship payment
 2614  is made for the student.
 2615         (f) Upon verification, the department shall release the
 2616  student’s scholarship funds to the organization, to be deposited
 2617  into the students account notification by the department that
 2618  it has received the documentation required under paragraph (e),
 2619  the Chief Financial Officer shall make scholarship payments in
 2620  four equal amounts no later than September 1, November 1,
 2621  February 1, and April 1 of each school year in which the
 2622  scholarship is in force. The initial payment shall be made after
 2623  department verification of admission acceptance, and subsequent
 2624  payments shall be made upon verification of continued enrollment
 2625  and attendance at the private school. Payment must be by
 2626  individual warrant made payable to the student’s parent and
 2627  mailed by the department to the private school of the parent’s
 2628  choice, and the parent shall restrictively endorse the warrant
 2629  to the private school for deposit into the account of the
 2630  private school.
 2631         (g) Accrued interest in the student’s account is in
 2632  addition to, and not part of, the awarded funds. Program funds
 2633  include both the awarded funds and accrued interest Subsequent
 2634  to each scholarship payment, the department shall request from
 2635  the Department of Financial Services a sample of endorsed
 2636  warrants to review and confirm compliance with endorsement
 2637  requirements.
 2638         (h) The organization may develop a system for payment of
 2639  benefits by funds transfer, including, but not limited to, debit
 2640  cards, electronic payment cards, or any other means of payment
 2641  that the department deems to be commercially viable or cost
 2642  effective. A student’s scholarship award may not be reduced for
 2643  debit card or electronic payment fees. Commodities or services
 2644  related to the development of such a system must be procured by
 2645  competitive solicitation unless they are purchased from a state
 2646  term contract pursuant to s. 287.056.
 2647         (i) Moneys received pursuant to this section do not
 2648  constitute taxable income to the qualified student or parent of
 2649  the qualified student.
 2650         (13) OBLIGATIONS OF THE AUDITOR GENERAL.—
 2651         (a) At least once every 3 years, the Auditor General shall
 2652  conduct an operational audit of accounts and records of each
 2653  organization that participates in the program. As part of this
 2654  audit, the Auditor General shall verify, at a minimum, the total
 2655  number of students served and the eligibility of reimbursements
 2656  made by the organization and transmit that information to the
 2657  department. The Auditor General shall provide the commissioner
 2658  with a copy of each annual operational audit performed pursuant
 2659  to this subsection within 10 days after the audit is finalized.
 2660         (b) The Auditor General shall notify the department of any
 2661  organization that fails to comply with a request for
 2662  information.
 2663         (14) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 2664  APPLICATION.—In order to participate in the scholarship program
 2665  created under this section, a charitable organization that seeks
 2666  to be a nonprofit scholarship-funding organization shall submit
 2667  an application for initial approval or renewal to the Office of
 2668  Independent Education and Parental Choice no later than
 2669  September 1 of each year before the school year for which the
 2670  organization intends to offer scholarships.
 2671         (a) An application for initial approval must include:
 2672         1. A copy of the organization’s incorporation documents and
 2673  registration with the Division of Corporations of the Department
 2674  of State.
 2675         2. A copy of the organization’s Internal Revenue Service
 2676  determination letter as an s. 501(c)(3) not-for-profit
 2677  organization.
 2678         3. A description of the organization’s financial plan that
 2679  demonstrates sufficient funds to operate throughout the school
 2680  year.
 2681         4. A description of the geographic region that the
 2682  organization intends to serve and an analysis of the demand and
 2683  unmet need for eligible students in that area.
 2684         5. The organization’s organizational chart.
 2685         6. A description of the criteria and methodology that the
 2686  organization will use to evaluate scholarship eligibility.
 2687         7. A description of the application process, including
 2688  deadlines and any associated fees.
 2689         8. A description of the deadlines for attendance
 2690  verification and scholarship payments.
 2691         9. A copy of the organization’s policies on conflict of
 2692  interest and whistleblowers.
 2693         10. A copy of a surety bond or letter of credit to secure
 2694  the faithful performance of the obligations of the eligible
 2695  nonprofit scholarship-funding organization in accordance with
 2696  this section in an amount equal to 25 percent of the scholarship
 2697  funds anticipated for each school year or $100,000, whichever is
 2698  greater. The surety bond or letter of credit must specify that
 2699  any claim against the bond or letter of credit may be made only
 2700  by an eligible nonprofit scholarship-funding organization to
 2701  provide scholarships to and on behalf of students who would have
 2702  had scholarships funded if it were not for the diversion of
 2703  funds giving rise to the claim against the bond or letter of
 2704  credit.
 2705         (b) In addition to the information required by
 2706  subparagraphs (a)1.-10., an application for renewal must
 2707  include:
 2708         1. A single surety bond or letter of credit to secure the
 2709  faithful performance of the obligations of the eligible
 2710  nonprofit scholarship-funding organization in accordance with
 2711  this chapter equal to the amount of undisbursed funds held by
 2712  the organization based on the annual report submitted pursuant
 2713  to paragraph (11)(r). The amount of the surety bond or letter of
 2714  credit must be at least $100,000, but not more than $25 million.
 2715  The surety bond or letter of credit must specify that any claim
 2716  against the bond or letter of credit may be made only by an
 2717  eligible nonprofit scholarship-funding organization to provide
 2718  scholarships to and on behalf of students who would have had
 2719  scholarships funded if it were not for the diversion of funds
 2720  giving rise to the claim against the bond or letter of credit.
 2721         2. The organization’s completed Internal Revenue Service
 2722  Form 990 submitted no later than November 30 of the year before
 2723  the school year that the organization intends to offer the
 2724  scholarships, notwithstanding the September 1 application
 2725  deadline.
 2726         3. A copy of the statutorily required audit to the
 2727  Department of Education and Auditor General.
 2728         4. An annual report that includes:
 2729         a. The number of students who completed applications, by
 2730  county and by grade.
 2731         b. The number of students who were approved for
 2732  scholarships, by county and by grade.
 2733         c. The number of students who received funding for
 2734  scholarships within each funding category, by county and by
 2735  grade.
 2736         d. The amount of funds received, the amount of funds
 2737  distributed in scholarships, and an accounting of remaining
 2738  funds and the obligation of those funds.
 2739         e. A detailed accounting of how the organization spent the
 2740  administrative funds allowable under paragraph (11)(k).
 2741         (c) In consultation with the Department of Revenue and the
 2742  Chief Financial Officer, the Office of Independent Education and
 2743  Parental Choice shall review the application. The Department of
 2744  Education shall notify the organization in writing of any
 2745  deficiencies within 30 days after receipt of the application and
 2746  allow the organization 30 days to correct any deficiencies.
 2747         (d) Within 30 days after receipt of the finalized
 2748  application by the Office of Independent Education and Parental
 2749  Choice, the Commissioner of Education shall recommend approval
 2750  or disapproval of the application to the State Board of
 2751  Education. The State Board of Education shall consider the
 2752  application and recommendation at the next scheduled meeting,
 2753  adhering to appropriate meeting notice requirements. If the
 2754  State Board of Education disapproves the organization’s
 2755  application, it shall provide the organization with a written
 2756  explanation of that determination. The State Board of
 2757  Education’s action is not subject to chapter 120.
 2758         (e) If the State Board of Education disapproves the renewal
 2759  of a nonprofit scholarship-funding organization, the
 2760  organization must notify the affected eligible students and
 2761  parents of the decision within 15 days after disapproval. An
 2762  eligible student affected by the disapproval of an
 2763  organization’s participation remains eligible under this section
 2764  until the end of the school year in which the organization was
 2765  disapproved. The student must apply and be accepted by another
 2766  eligible nonprofit scholarship-funding organization for the
 2767  upcoming school year. The student must be given priority in
 2768  accordance with paragraph (3)(d).
 2769         (f) All remaining eligible student accounts with funds held
 2770  by a nonprofit scholarship-funding organization that is
 2771  disapproved for participation must be transferred to the
 2772  student’s account established at the eligible nonprofit
 2773  scholarship-funding organization accepting the student. All
 2774  transferred funds must be deposited by each eligible nonprofit
 2775  scholarship-funding organization receiving such funds into the
 2776  student’s scholarship account. All other remaining funds must be
 2777  transferred to the department. All transferred amounts received
 2778  by any eligible nonprofit scholarship-funding organization must
 2779  be separately disclosed in the annual financial audit required
 2780  under subsection (11).
 2781         (g) A nonprofit scholarship-funding organization is a
 2782  renewing organization if it was approved by the State Board of
 2783  Education for the 2021-2022 fiscal year or after and maintains
 2784  continuous approval and participation in the program. An
 2785  organization that chooses not to participate for 1 year or more
 2786  or is disapproved to participate for 1 year or more must submit
 2787  an application for initial approval in order to participate in
 2788  the program again.
 2789         (h) The State Board of Education shall adopt rules
 2790  providing guidelines for receiving, reviewing, and approving
 2791  applications for new and renewing nonprofit scholarship-funding
 2792  organizations. The rules must include a process for compiling
 2793  input and recommendations from the Chief Financial Officer, the
 2794  Department of Revenue, and the Department of Education. The
 2795  rules must also require that the nonprofit scholarship-funding
 2796  organization make a brief presentation to assist the State Board
 2797  of Education in its decision.
 2798         (i) A state university or an independent college or
 2799  university that is eligible to participate in the William L.
 2800  Boyd, IV, Effective Access to Student Education Grant Program,
 2801  is located and chartered in this state, is not for profit, and
 2802  is accredited by the Commission on Colleges of the Southern
 2803  Association of Colleges and Schools is exempt from the initial
 2804  or renewal application process, but must file a registration
 2805  notice with the Department of Education to be an eligible
 2806  nonprofit scholarship-funding organization. The State Board of
 2807  Education shall adopt rules that identify the procedure for
 2808  filing the registration notice with the department. The rules
 2809  must identify appropriate reporting requirements for fiscal,
 2810  programmatic, and performance accountability purposes consistent
 2811  with this section, but may not exceed the requirements for
 2812  eligible nonprofit scholarship-funding organizations for
 2813  charitable organizations.
 2814         (15)(12) LIABILITY.—No liability shall arise on the part of
 2815  the state based on the award or use of a Family Empowerment
 2816  Scholarship.
 2817         (16)(13) SCOPE OF AUTHORITY.—The inclusion of eligible
 2818  private schools and private providers within the options
 2819  available to Florida public school students does not expand the
 2820  regulatory authority of the state, its officers, or any school
 2821  district to impose any additional regulation of private schools
 2822  beyond those reasonably necessary to enforce requirements
 2823  expressly set forth in this section.
 2824         (17)(14) RULES.—The State Board of Education shall adopt
 2825  rules pursuant to ss. 120.536(1) and 120.54 to administer this
 2826  section. The state board rules must include a requirement that
 2827  the department work collaboratively with an approved
 2828  scholarship-funding organization to expedite the process for the
 2829  verification and reporting obligations specified under
 2830  subsection (11) (10).
 2831         (15) IMPLEMENTATION SCHEDULE FOR THE 2019-2020 SCHOOL
 2832  YEAR.—Notwithstanding the provisions of this section related to
 2833  notification requirements and eligibility timelines, for the
 2834  2019-2020 school year:
 2835         (a) A student is eligible for a Family Empowerment
 2836  Scholarship under this section if the student’s parent has
 2837  obtained acceptance of the student’s admission to a private
 2838  school that is eligible for the program under subsection (8),
 2839  and the parent has requested a scholarship from the Department
 2840  of Education no later than August 15, 2019. The request must be
 2841  communicated directly to the department in a manner that creates
 2842  a written or electronic record of the request and the date of
 2843  receipt of the request.
 2844         (b) The department shall expedite the publication of
 2845  information relevant to the Family Empowerment Scholarship
 2846  Program on the department’s website, including, but not limited
 2847  to, the eligibility criteria for students to qualify for the
 2848  scholarship under this section and how parents may request the
 2849  scholarship. The department must immediately notify the school
 2850  district of the parent’s intent upon receipt of the parent’s
 2851  request.
 2852         (c) Upon notification by the department that it has
 2853  received the documentation required under paragraph (10)(a), the
 2854  Chief Financial Officer shall make the first quarter payment of
 2855  scholarships no later than October 1, 2019.
 2856  
 2857  This subsection shall expire June 30, 2020.
 2858         Section 20. Section 1002.395, Florida Statutes, is amended
 2859  to read:
 2860         1002.395 Florida K-12 Education Funding Tax Credit
 2861  Scholarship Program.—
 2862         (1) FINDINGS AND PURPOSE.—
 2863         (a) The Legislature finds that:
 2864         1. It has the inherent power to determine subjects of
 2865  taxation for general or particular public purposes.
 2866         2. Expanding educational opportunities and improving the
 2867  quality of educational services within the state are valid
 2868  public purposes that the Legislature may promote using its
 2869  sovereign power to determine subjects of taxation and exemptions
 2870  from taxation.
 2871         3. Ensuring that all parents, regardless of means, may
 2872  exercise and enjoy their basic right to educate their children
 2873  as they see fit is a valid public purpose that the Legislature
 2874  may promote using its sovereign power to determine subjects of
 2875  taxation and exemptions from taxation.
 2876         4. Expanding educational opportunities and the healthy
 2877  competition they promote are critical to improving the quality
 2878  of education in the state and to ensuring that all children
 2879  receive the high-quality education to which they are entitled.
 2880         (b) The purpose of this section is to:
 2881         1. Enable taxpayers to designate portions of certain tax
 2882  payments as make private, voluntary contributions to K-12
 2883  education funding to nonprofit scholarship-funding organizations
 2884  in order to promote the general welfare.
 2885         2. Provide taxpayers who wish to help parents with limited
 2886  resources exercise their basic right to educate their children
 2887  as they see fit with a means to do so.
 2888         3. Promote the general welfare by expanding educational
 2889  opportunities for children of families that have limited
 2890  financial resources.
 2891         4. Enable children in this state to achieve a greater level
 2892  of excellence in their education.
 2893         3.5. Improve the quality of education in this state, both
 2894  by expanding educational opportunities for children and by
 2895  creating incentives for schools to achieve excellence.
 2896         (c) The purpose of this section is not to prescribe the
 2897  standards or curriculum for private schools. A private school
 2898  retains the authority to determine its own standards and
 2899  curriculum.
 2900         (2) DEFINITIONS.—As used in this section, the term:
 2901         (a) “Annual tax credit amount” means, for any state fiscal
 2902  year, the sum of the amount of tax credits approved under
 2903  paragraph (5)(b), including tax credits to be taken under s.
 2904  220.1875 or s. 624.51055, which are approved for a taxpayer
 2905  whose taxable year begins on or after January 1 of the calendar
 2906  year preceding the start of the applicable state fiscal year.
 2907         (b) “Department” means the Department of Revenue.
 2908         (c) “Direct certification list” means the certified list of
 2909  children who qualify for the food assistance program, the
 2910  Temporary Assistance to Needy Families Program, or the Food
 2911  Distribution Program on Indian Reservations provided to the
 2912  Department of Education by the Department of Children and
 2913  Families.
 2914         (b)(d) “Division” means the Division of Alcoholic Beverages
 2915  and Tobacco of the Department of Business and Professional
 2916  Regulation.
 2917         (c)(e) “Eligible contribution” means the taxes, or a
 2918  portion thereof, remitted by the taxpayer to the department or
 2919  the division which the taxpayer elects to designate for K-12
 2920  education funding a monetary contribution from a taxpayer,
 2921  subject to the restrictions provided in this section, to an
 2922  eligible nonprofit scholarship-funding organization. The
 2923  taxpayer making the contribution may not designate a specific
 2924  child as the beneficiary of the contribution.
 2925         (f) “Eligible nonprofit scholarship-funding organization”
 2926  means a state university; or an independent college or
 2927  university that is eligible to participate in the William L.
 2928  Boyd, IV, Effective Access to Student Education Grant Program,
 2929  located and chartered in this state, is not for profit, and is
 2930  accredited by the Commission on Colleges of the Southern
 2931  Association of Colleges and Schools; or is a charitable
 2932  organization that:
 2933         1. Is exempt from federal income tax pursuant to s.
 2934  501(c)(3) of the Internal Revenue Code;
 2935         2. Is a Florida entity formed under chapter 605, chapter
 2936  607, or chapter 617 and whose principal office is located in the
 2937  state; and
 2938         3. Complies with subsections (6) and (15).
 2939         (g) “Eligible private school” means a private school, as
 2940  defined in s. 1002.01(2), located in Florida which offers an
 2941  education to students in any grades K-12 and that meets the
 2942  requirements in subsection (8).
 2943         (h) “Household income” has the same meaning as the term
 2944  “income” as defined in the Income Eligibility Guidelines for
 2945  free and reduced price meals under the National School Lunch
 2946  Program in 7 C.F.R. part 210 as published in the Federal
 2947  Register by the United States Department of Agriculture.
 2948         (i) “Owner or operator” includes:
 2949         1. An owner, president, officer, or director of an eligible
 2950  nonprofit scholarship-funding organization or a person with
 2951  equivalent decisionmaking authority over an eligible nonprofit
 2952  scholarship-funding organization.
 2953         2. An owner, operator, superintendent, or principal of an
 2954  eligible private school or a person with equivalent
 2955  decisionmaking authority over an eligible private school.
 2956         (j) “Tax credit cap amount” means the maximum annual tax
 2957  credit amount that the department may approve for a state fiscal
 2958  year.
 2959         (k) “Unweighted FTE funding amount” means the statewide
 2960  average total funds per unweighted full-time equivalent funding
 2961  amount that is incorporated by reference in the General
 2962  Appropriations Act, or any subsequent special appropriations
 2963  act, for the applicable state fiscal year.
 2964         (3) PROGRAM; INITIAL SCHOLARSHIP ELIGIBILITY.—
 2965         (a) The Florida Tax Credit Scholarship Program is
 2966  established.
 2967         (b) A student is eligible for a Florida tax credit
 2968  scholarship under this section if the student meets one or more
 2969  of the following criteria:
 2970         1. The student is on the direct certification list or the
 2971  student’s household income level does not exceed 260 percent of
 2972  the federal poverty level; or
 2973         2. The student is currently placed, or during the previous
 2974  state fiscal year was placed, in foster care or in out-of-home
 2975  care as defined in s. 39.01.
 2976  
 2977  Priority must be given to a student whose household income level
 2978  does not exceed 185 percent of the federal poverty level or who
 2979  is in foster care or out-of-home care. A student who initially
 2980  receives a scholarship based on eligibility under this paragraph
 2981  remains eligible to participate until he or she graduates from
 2982  high school or attains the age of 21 years, whichever occurs
 2983  first, regardless of the student’s household income level. A
 2984  sibling of a student who is participating in the scholarship
 2985  program under this subsection is eligible for a scholarship if
 2986  the student resides in the same household as the sibling.
 2987         (4) SCHOLARSHIP PROHIBITIONS.—A student is not eligible for
 2988  a scholarship while he or she is:
 2989         (a) Enrolled in a school operating for the purpose of
 2990  providing educational services to youth in Department of
 2991  Juvenile Justice commitment programs;
 2992         (b) Receiving a scholarship from another eligible nonprofit
 2993  scholarship-funding organization under this section;
 2994         (c) Receiving an educational scholarship pursuant to
 2995  chapter 1002;
 2996         (d) Participating in a home education program as defined in
 2997  s. 1002.01(1);
 2998         (e) Participating in a private tutoring program pursuant to
 2999  s. 1002.43;
 3000         (f) Participating in a virtual school, correspondence
 3001  school, or distance learning program that receives state funding
 3002  pursuant to the student’s participation unless the participation
 3003  is limited to no more than two courses per school year; or
 3004         (g) Enrolled in the Florida School for the Deaf and the
 3005  Blind.
 3006         (5)K-12 EDUCATION SCHOLARSHIP FUNDING TAX CREDITS;
 3007  LIMITATIONS.—
 3008         (a)1. The tax credit cap amount is $229 million in the
 3009  2012-2013 state fiscal year.
 3010         2. In the 2013-2014 state fiscal year and each state fiscal
 3011  year thereafter, the tax credit cap amount is the tax credit cap
 3012  amount in the prior state fiscal year. However, in any state
 3013  fiscal year when the annual tax credit amount for the prior
 3014  state fiscal year is equal to or greater than 90 percent of the
 3015  tax credit cap amount applicable to that state fiscal year, the
 3016  tax credit cap amount shall increase by 25 percent. The
 3017  Department of Education and Department of Revenue shall publish
 3018  on their websites information identifying the tax credit cap
 3019  amount when it is increased pursuant to this subparagraph.
 3020         (a)(b) A taxpayer may elect to make eligible contributions
 3021  submit an application to the department or the division for a
 3022  tax credit or credits under one or more of s. 211.0251, s.
 3023  212.1831, s. 220.1875, s. 561.1211, or s. 624.51055. For
 3024  elections related to taxes imposed under chapter 211, chapter
 3025  212, or chapter 561, the taxpayer shall make the election on a
 3026  return filed with the department or the division. For elections
 3027  related to taxes imposed under chapter 220 or chapter 624, the
 3028  taxpayer shall make the election when making the estimated
 3029  payment.
 3030         (b) The taxpayer shall specify the amount of the eligible
 3031  contribution, which amount may not exceed:
 3032         1.For elections under s. 211.0251, 50 percent of the tax
 3033  due on the return on which the election is made.
 3034         2.For elections under s. 212.1831, 100 percent of the tax
 3035  due on the return on which the election is made.
 3036         3.For elections under s. 220.1875, 25 percent of the final
 3037  tax liability shown on the taxpayer’s Florida Corporate Income
 3038  Tax Return for the prior taxable year.
 3039         4.For elections under s. 561.1211, 90 percent of the tax
 3040  due on the return on which the election is made.
 3041         5.For elections under s. 624.51055, 33 percent of the tax
 3042  due for the prior taxable year under s. 624.509(1) after
 3043  deducting from such tax the prior year’s deductions for
 3044  assessments made pursuant to s. 440.51; credits for taxes paid
 3045  under ss. 175.101 and 185.08; credits for income taxes paid
 3046  under chapter 220; and the credit allowed under s. 624.509(5),
 3047  as such credit is limited by s. 624.509(6).
 3048         1. The taxpayer shall specify in the application each tax
 3049  for which the taxpayer requests a credit and the applicable
 3050  taxable year for a credit under s. 220.1875 or s. 624.51055 or
 3051  the applicable state fiscal year for a credit under s. 211.0251,
 3052  s. 212.1831, or s. 561.1211. For purposes of s. 220.1875, a
 3053  taxpayer may apply for a credit to be used for a prior taxable
 3054  year before the date the taxpayer is required to file a return
 3055  for that year pursuant to s. 220.222. For purposes of s.
 3056  624.51055, a taxpayer may apply for a credit to be used for a
 3057  prior taxable year before the date the taxpayer is required to
 3058  file a return for that prior taxable year pursuant to ss.
 3059  624.509 and 624.5092. The department shall approve tax credits
 3060  on a first-come, first-served basis and must obtain the
 3061  division’s approval before approving a tax credit under s.
 3062  561.1211.
 3063         2. Within 10 days after approving or denying an
 3064  application, the department shall provide a copy of its approval
 3065  or denial letter to the eligible nonprofit scholarship-funding
 3066  organization specified by the taxpayer in the application.
 3067         (c) If a tax credit approved under paragraph (b) is not
 3068  fully used within the specified state fiscal year for credits
 3069  under s. 211.0251, s. 212.1831, or s. 561.1211 or against taxes
 3070  due for the specified taxable year for credits under s. 220.1875
 3071  or s. 624.51055 because of insufficient tax liability on the
 3072  part of the taxpayer, the unused amount shall be carried forward
 3073  for a period not to exceed 10 years. For purposes of s.
 3074  220.1875, a credit carried forward may be used in a subsequent
 3075  year after applying the other credits and unused carryovers in
 3076  the order provided in s. 220.02(8).
 3077         (d) A taxpayer may not convey, assign, or transfer an
 3078  approved tax credit or a carryforward tax credit to another
 3079  entity unless all of the assets of the taxpayer are conveyed,
 3080  assigned, or transferred in the same transaction. However, a tax
 3081  credit under s. 211.0251, s. 212.1831, s. 220.1875, s. 561.1211,
 3082  or s. 624.51055 may be conveyed, transferred, or assigned
 3083  between members of an affiliated group of corporations if the
 3084  type of tax credit under s. 211.0251, s. 212.1831, s. 220.1875,
 3085  s. 561.1211, or s. 624.51055 remains the same. A taxpayer shall
 3086  notify the department of its intent to convey, transfer, or
 3087  assign a tax credit to another member within an affiliated group
 3088  of corporations. The amount conveyed, transferred, or assigned
 3089  is available to another member of the affiliated group of
 3090  corporations upon approval by the department. The department
 3091  shall obtain the division’s approval before approving a
 3092  conveyance, transfer, or assignment of a tax credit under s.
 3093  561.1211.
 3094         (e) Within any state fiscal year, a taxpayer may rescind
 3095  all or part of a tax credit approved under paragraph (b). The
 3096  amount rescinded shall become available for that state fiscal
 3097  year to another eligible taxpayer as approved by the department
 3098  if the taxpayer receives notice from the department that the
 3099  rescindment has been accepted by the department. The department
 3100  must obtain the division’s approval prior to accepting the
 3101  rescindment of a tax credit under s. 561.1211. Any amount
 3102  rescinded under this paragraph shall become available to an
 3103  eligible taxpayer on a first-come, first-served basis based on
 3104  tax credit applications received after the date the rescindment
 3105  is accepted by the department.
 3106         (f) Within 10 days after approving or denying the
 3107  conveyance, transfer, or assignment of a tax credit under
 3108  paragraph (d), or the rescindment of a tax credit under
 3109  paragraph (e), the department shall provide a copy of its
 3110  approval or denial letter to the eligible nonprofit scholarship
 3111  funding organization specified by the taxpayer. The department
 3112  shall also include the eligible nonprofit scholarship-funding
 3113  organization specified by the taxpayer on all letters or
 3114  correspondence of acknowledgment for tax credits under s.
 3115  212.1831.
 3116         (g) For purposes of calculating the underpayment of
 3117  estimated corporate income taxes pursuant to s. 220.34 and tax
 3118  installment payments for taxes on insurance premiums or
 3119  assessments under s. 624.5092, the final amount due is the
 3120  amount after credits earned under s. 220.1875 or s. 624.51055
 3121  for contributions to eligible nonprofit scholarship-funding
 3122  organizations are deducted.
 3123         1. For purposes of determining if a penalty or interest
 3124  shall be imposed for underpayment of estimated corporate income
 3125  tax pursuant to s. 220.34(2)(d)1., a taxpayer may, after earning
 3126  a credit under s. 220.1875, reduce any estimated payment in that
 3127  taxable year by the amount of the credit. This subparagraph
 3128  applies to contributions made on or after July 1, 2014.
 3129         2. For purposes of determining if a penalty under s.
 3130  624.5092 shall be imposed, an insurer, after earning a credit
 3131  under s. 624.51055 for a taxable year, may reduce any
 3132  installment payment for such taxable year of 27 percent of the
 3133  amount of the net tax due as reported on the return for the
 3134  preceding year under s. 624.5092(2)(b) by the amount of the
 3135  credit. This subparagraph applies to contributions made on or
 3136  after July 1, 2014.
 3137         (6) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
 3138  ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 3139  organization:
 3140         (a) Must comply with the antidiscrimination provisions of
 3141  42 U.S.C. s. 2000d.
 3142         (b) Must comply with the following background check
 3143  requirements:
 3144         1. All owners and operators as defined in subparagraph
 3145  (2)(i)1. are, before employment or engagement to provide
 3146  services, subject to level 2 background screening as provided
 3147  under chapter 435. The fingerprints for the background screening
 3148  must be electronically submitted to the Department of Law
 3149  Enforcement and can be taken by an authorized law enforcement
 3150  agency or by an employee of the eligible nonprofit scholarship
 3151  funding organization or a private company who is trained to take
 3152  fingerprints. However, the complete set of fingerprints of an
 3153  owner or operator may not be taken by the owner or operator. The
 3154  results of the state and national criminal history check shall
 3155  be provided to the Department of Education for screening under
 3156  chapter 435. The cost of the background screening may be borne
 3157  by the eligible nonprofit scholarship-funding organization or
 3158  the owner or operator.
 3159         2. Every 5 years following employment or engagement to
 3160  provide services or association with an eligible nonprofit
 3161  scholarship-funding organization, each owner or operator must
 3162  meet level 2 screening standards as described in s. 435.04, at
 3163  which time the nonprofit scholarship-funding organization shall
 3164  request the Department of Law Enforcement to forward the
 3165  fingerprints to the Federal Bureau of Investigation for level 2
 3166  screening. If the fingerprints of an owner or operator are not
 3167  retained by the Department of Law Enforcement under subparagraph
 3168  3., the owner or operator must electronically file a complete
 3169  set of fingerprints with the Department of Law Enforcement. Upon
 3170  submission of fingerprints for this purpose, the eligible
 3171  nonprofit scholarship-funding organization shall request that
 3172  the Department of Law Enforcement forward the fingerprints to
 3173  the Federal Bureau of Investigation for level 2 screening, and
 3174  the fingerprints shall be retained by the Department of Law
 3175  Enforcement under subparagraph 3.
 3176         3. Fingerprints submitted to the Department of Law
 3177  Enforcement as required by this paragraph must be retained by
 3178  the Department of Law Enforcement in a manner approved by rule
 3179  and entered in the statewide automated biometric identification
 3180  system authorized by s. 943.05(2)(b). The fingerprints must
 3181  thereafter be available for all purposes and uses authorized for
 3182  arrest fingerprints entered in the statewide automated biometric
 3183  identification system pursuant to s. 943.051.
 3184         4. The Department of Law Enforcement shall search all
 3185  arrest fingerprints received under s. 943.051 against the
 3186  fingerprints retained in the statewide automated biometric
 3187  identification system under subparagraph 3. Any arrest record
 3188  that is identified with an owner’s or operator’s fingerprints
 3189  must be reported to the Department of Education. The Department
 3190  of Education shall participate in this search process by paying
 3191  an annual fee to the Department of Law Enforcement and by
 3192  informing the Department of Law Enforcement of any change in the
 3193  employment, engagement, or association status of the owners or
 3194  operators whose fingerprints are retained under subparagraph 3.
 3195  The Department of Law Enforcement shall adopt a rule setting the
 3196  amount of the annual fee to be imposed upon the Department of
 3197  Education for performing these services and establishing the
 3198  procedures for the retention of owner and operator fingerprints
 3199  and the dissemination of search results. The fee may be borne by
 3200  the owner or operator of the nonprofit scholarship-funding
 3201  organization.
 3202         5. A nonprofit scholarship-funding organization whose owner
 3203  or operator fails the level 2 background screening is not
 3204  eligible to provide scholarships under this section.
 3205         6. A nonprofit scholarship-funding organization whose owner
 3206  or operator in the last 7 years has filed for personal
 3207  bankruptcy or corporate bankruptcy in a corporation of which he
 3208  or she owned more than 20 percent shall not be eligible to
 3209  provide scholarships under this section.
 3210         7. In addition to the offenses listed in s. 435.04, a
 3211  person required to undergo background screening pursuant to this
 3212  part or authorizing statutes must not have an arrest awaiting
 3213  final disposition for, must not have been found guilty of, or
 3214  entered a plea of nolo contendere to, regardless of
 3215  adjudication, and must not have been adjudicated delinquent, and
 3216  the record must not have been sealed or expunged for, any of the
 3217  following offenses or any similar offense of another
 3218  jurisdiction:
 3219         a. Any authorizing statutes, if the offense was a felony.
 3220         b. This chapter, if the offense was a felony.
 3221         c. Section 409.920, relating to Medicaid provider fraud.
 3222         d. Section 409.9201, relating to Medicaid fraud.
 3223         e. Section 741.28, relating to domestic violence.
 3224         f. Section 817.034, relating to fraudulent acts through
 3225  mail, wire, radio, electromagnetic, photoelectronic, or
 3226  photooptical systems.
 3227         g. Section 817.234, relating to false and fraudulent
 3228  insurance claims.
 3229         h. Section 817.505, relating to patient brokering.
 3230         i. Section 817.568, relating to criminal use of personal
 3231  identification information.
 3232         j. Section 817.60, relating to obtaining a credit card
 3233  through fraudulent means.
 3234         k. Section 817.61, relating to fraudulent use of credit
 3235  cards, if the offense was a felony.
 3236         l. Section 831.01, relating to forgery.
 3237         m. Section 831.02, relating to uttering forged instruments.
 3238         n. Section 831.07, relating to forging bank bills, checks,
 3239  drafts, or promissory notes.
 3240         o. Section 831.09, relating to uttering forged bank bills,
 3241  checks, drafts, or promissory notes.
 3242         p. Section 831.30, relating to fraud in obtaining medicinal
 3243  drugs.
 3244         q. Section 831.31, relating to the sale, manufacture,
 3245  delivery, or possession with the intent to sell, manufacture, or
 3246  deliver any counterfeit controlled substance, if the offense was
 3247  a felony.
 3248         (c) Must not have an owner or operator who owns or operates
 3249  an eligible private school that is participating in the
 3250  scholarship program.
 3251         (d) Must provide scholarships, from eligible contributions,
 3252  to eligible students for the cost of:
 3253         1. Tuition and fees for an eligible private school; or
 3254         2. Transportation to a Florida public school in which a
 3255  student is enrolled and that is different from the school to
 3256  which the student was assigned or to a lab school as defined in
 3257  s. 1002.32.
 3258         (e) Must give first priority to eligible renewal students
 3259  who received a scholarship from an eligible nonprofit
 3260  scholarship-funding organization or from the State of Florida
 3261  during the previous school year. The eligible nonprofit
 3262  scholarship-funding organization must fully apply and exhaust
 3263  all funds available under this section and s. 1002.40(11)(i) for
 3264  renewal scholarship awards before awarding any initial
 3265  scholarships.
 3266         (f) Must provide a renewal or initial scholarship to an
 3267  eligible student on a first-come, first-served basis unless the
 3268  student qualifies for priority pursuant to paragraph (e). Each
 3269  eligible nonprofit scholarship-funding organization must refer
 3270  any student eligible for a scholarship pursuant to this section
 3271  who did not receive a renewal or initial scholarship based
 3272  solely on the lack of available funds under this section and s.
 3273  1002.40(11)(i) to another eligible nonprofit scholarship-funding
 3274  organization that may have funds available.
 3275         (g) May not restrict or reserve scholarships for use at a
 3276  particular private school or provide scholarships to a child of
 3277  an owner or operator.
 3278         (h) Must allow a student in foster care or out-of-home care
 3279  or a dependent child of a parent who is a member of the United
 3280  States Armed Forces to apply for a scholarship at any time.
 3281         (i) Must allow an eligible student to attend any eligible
 3282  private school and must allow a parent to transfer a scholarship
 3283  during a school year to any other eligible private school of the
 3284  parent’s choice.
 3285         (j)1. May use eligible contributions received pursuant to
 3286  this section and ss. 212.099, 212.1832, and 1002.40 during the
 3287  state fiscal year in which such contributions are collected for
 3288  administrative expenses if the organization has operated as an
 3289  eligible nonprofit scholarship-funding organization for at least
 3290  the preceding 3 fiscal years and did not have any findings of
 3291  material weakness or material noncompliance in its most recent
 3292  audit under paragraph (m). Administrative expenses from eligible
 3293  contributions may not exceed 3 percent of the total amount of
 3294  all scholarships awarded by an eligible scholarship-funding
 3295  organization under this chapter. Such administrative expenses
 3296  must be reasonable and necessary for the organization’s
 3297  management and distribution of scholarships awarded under this
 3298  chapter. No funds authorized under this subparagraph shall be
 3299  used for lobbying or political activity or expenses related to
 3300  lobbying or political activity. Up to one-third of the funds
 3301  authorized for administrative expenses under this subparagraph
 3302  may be used for expenses related to the recruitment of
 3303  contributions from taxpayers. An eligible nonprofit scholarship
 3304  funding organization may not charge an application fee.
 3305         2. Must expend for annual or partial-year scholarships an
 3306  amount equal to or greater than 75 percent of the net eligible
 3307  contributions remaining after administrative expenses during the
 3308  state fiscal year in which such contributions are collected. No
 3309  more than 25 percent of such net eligible contributions may be
 3310  carried forward to the following state fiscal year. All amounts
 3311  carried forward, for audit purposes, must be specifically
 3312  identified for particular students, by student name and the name
 3313  of the school to which the student is admitted, subject to the
 3314  requirements of ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g,
 3315  and the applicable rules and regulations issued pursuant
 3316  thereto. Any amounts carried forward shall be expended for
 3317  annual or partial-year scholarships in the following state
 3318  fiscal year. No later than September 30 of each year, net
 3319  eligible contributions remaining on June 30 of each year that
 3320  are in excess of the 25 percent that may be carried forward
 3321  shall be used to provide scholarships to eligible students or
 3322  transferred to other eligible nonprofit scholarship-funding
 3323  organizations to provide scholarships for eligible students. All
 3324  transferred funds must be deposited by each eligible nonprofit
 3325  scholarship-funding organization receiving such funds into its
 3326  scholarship account. All transferred amounts received by any
 3327  eligible nonprofit scholarship-funding organization must be
 3328  separately disclosed in the annual financial audit required
 3329  under paragraph (m).
 3330         3. Must, before granting a scholarship for an academic
 3331  year, document each scholarship student’s eligibility for that
 3332  academic year. A scholarship-funding organization may not grant
 3333  multiyear scholarships in one approval process.
 3334         (k) Must maintain separate accounts for scholarship funds
 3335  and operating funds.
 3336         (l) With the prior approval of the Department of Education,
 3337  may transfer funds to another eligible nonprofit scholarship
 3338  funding organization if additional funds are required to meet
 3339  scholarship demand at the receiving nonprofit scholarship
 3340  funding organization. A transfer is limited to the greater of
 3341  $500,000 or 20 percent of the total contributions received by
 3342  the nonprofit scholarship-funding organization making the
 3343  transfer. All transferred funds must be deposited by the
 3344  receiving nonprofit scholarship-funding organization into its
 3345  scholarship accounts. All transferred amounts received by any
 3346  nonprofit scholarship-funding organization must be separately
 3347  disclosed in the annual financial and compliance audit required
 3348  in this section.
 3349         (m) Must provide to the Auditor General and the Department
 3350  of Education a report on the results of an annual financial
 3351  audit of its accounts and records conducted by an independent
 3352  certified public accountant in accordance with auditing
 3353  standards generally accepted in the United States, government
 3354  auditing standards, and rules promulgated by the Auditor
 3355  General. The audit report must include a report on financial
 3356  statements presented in accordance with generally accepted
 3357  accounting principles. Audit reports must be provided to the
 3358  Auditor General and the Department of Education within 180 days
 3359  after completion of the eligible nonprofit scholarship-funding
 3360  organization’s fiscal year. The Auditor General shall review all
 3361  audit reports submitted pursuant to this paragraph. The Auditor
 3362  General shall request any significant items that were omitted in
 3363  violation of a rule adopted by the Auditor General. The items
 3364  must be provided within 45 days after the date of the request.
 3365  If the scholarship-funding organization does not comply with the
 3366  Auditor General’s request, the Auditor General shall notify the
 3367  Legislative Auditing Committee.
 3368         (n) Must prepare and submit quarterly reports to the
 3369  Department of Education pursuant to paragraph (9)(i). In
 3370  addition, an eligible nonprofit scholarship-funding organization
 3371  must submit in a timely manner any information requested by the
 3372  Department of Education relating to the scholarship program.
 3373         (o)1.a. Must participate in the joint development of
 3374  agreed-upon procedures during the 2009-2010 state fiscal year.
 3375  The agreed-upon procedures must uniformly apply to all private
 3376  schools and must determine, at a minimum, whether the private
 3377  school has been verified as eligible by the Department of
 3378  Education under s. 1002.421; has an adequate accounting system,
 3379  system of financial controls, and process for deposit and
 3380  classification of scholarship funds; and has properly expended
 3381  scholarship funds for education-related expenses. During the
 3382  development of the procedures, the participating scholarship
 3383  funding organizations shall specify guidelines governing the
 3384  materiality of exceptions that may be found during the
 3385  accountant’s performance of the procedures. The procedures and
 3386  guidelines shall be provided to private schools and the
 3387  Commissioner of Education by March 15, 2011.
 3388         b. Must participate in a joint review of the agreed-upon
 3389  procedures and guidelines developed under sub-subparagraph a.,
 3390  by February of each biennium, if the scholarship-funding
 3391  organization provided more than $250,000 in scholarship funds to
 3392  an eligible private school under this chapter during the state
 3393  fiscal year preceding the biennial review. If the procedures and
 3394  guidelines are revised, the revisions must be provided to
 3395  private schools and the Commissioner of Education by March 15 of
 3396  the year in which the revisions were completed. The revised
 3397  agreed-upon procedures shall take effect the subsequent school
 3398  year. For the 2018-2019 school year only, the joint review of
 3399  the agreed-upon procedures must be completed and the revisions
 3400  submitted to the commissioner no later than September 15, 2018.
 3401  The revised procedures are applicable to the 2018-2019 school
 3402  year.
 3403         c. Must monitor the compliance of a private school with s.
 3404  1002.421(1)(q) if the scholarship-funding organization provided
 3405  the majority of the scholarship funding to the school. For each
 3406  private school subject to s. 1002.421(1)(q), the appropriate
 3407  scholarship-funding organization shall annually notify the
 3408  Commissioner of Education by October 30 of:
 3409         (I) A private school’s failure to submit a report required
 3410  under s. 1002.421(1)(q); or
 3411         (II) Any material exceptions set forth in the report
 3412  required under s. 1002.421(1)(q).
 3413         2. Must seek input from the accrediting associations that
 3414  are members of the Florida Association of Academic Nonpublic
 3415  Schools and the Department of Education when jointly developing
 3416  the agreed-upon procedures and guidelines under sub-subparagraph
 3417  1.a. and conducting a review of those procedures and guidelines
 3418  under sub-subparagraph 1.b.
 3419         (p) Must maintain the surety bond or letter of credit
 3420  required by subsection (15). The amount of the surety bond or
 3421  letter of credit may be adjusted quarterly to equal the actual
 3422  amount of undisbursed funds based upon submission by the
 3423  organization of a statement from a certified public accountant
 3424  verifying the amount of undisbursed funds. The requirements of
 3425  this paragraph are waived if the cost of acquiring a surety bond
 3426  or letter of credit exceeds the average 10-year cost of
 3427  acquiring a surety bond or letter of credit by 200 percent. The
 3428  requirements of this paragraph are waived for a state
 3429  university; or an independent college or university which is
 3430  eligible to participate in the William L. Boyd, IV, Effective
 3431  Access to Student Education Grant Program, located and chartered
 3432  in this state, is not for profit, and is accredited by the
 3433  Commission on Colleges of the Southern Association of Colleges
 3434  and Schools.
 3435         (q) Must provide to the Auditor General any information or
 3436  documentation requested in connection with an operational audit
 3437  of a scholarship funding organization conducted pursuant to s.
 3438  11.45.
 3439  
 3440  Information and documentation provided to the Department of
 3441  Education and the Auditor General relating to the identity of a
 3442  taxpayer that provides an eligible contribution under this
 3443  section shall remain confidential at all times in accordance
 3444  with s. 213.053.
 3445         (7) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 3446  PARTICIPATION.—
 3447         (a) The parent must select an eligible private school and
 3448  apply for the admission of his or her child.
 3449         (b) The parent must inform the child’s school district when
 3450  the parent withdraws his or her child to attend an eligible
 3451  private school.
 3452         (c) Any student participating in the scholarship program
 3453  must remain in attendance throughout the school year unless
 3454  excused by the school for illness or other good cause.
 3455         (d) Each parent and each student has an obligation to the
 3456  private school to comply with the private school’s published
 3457  policies.
 3458         (e) The parent shall ensure that the student participating
 3459  in the scholarship program takes the norm-referenced assessment
 3460  offered by the private school. The parent may also choose to
 3461  have the student participate in the statewide assessments
 3462  pursuant to s. 1008.22. If the parent requests that the student
 3463  participating in the scholarship program take statewide
 3464  assessments pursuant to s. 1008.22 and the private school has
 3465  not chosen to offer and administer the statewide assessments,
 3466  the parent is responsible for transporting the student to the
 3467  assessment site designated by the school district.
 3468         (f) Upon receipt of a scholarship warrant from the eligible
 3469  nonprofit scholarship-funding organization, the parent to whom
 3470  the warrant is made must restrictively endorse the warrant to
 3471  the private school for deposit into the account of the private
 3472  school. If payments are made by funds transfer, the parent must
 3473  approve each payment before the scholarship funds may be
 3474  deposited. The parent may not designate any entity or individual
 3475  associated with the participating private school as the parent’s
 3476  attorney in fact to endorse a scholarship warrant or approve a
 3477  funds transfer. A participant who fails to comply with this
 3478  paragraph forfeits the scholarship.
 3479         (g) The parent shall authorize the nonprofit scholarship
 3480  funding organization to access information needed for income
 3481  eligibility determination and verification held by other state
 3482  or federal agencies, including the Department of Revenue, the
 3483  Department of Children and Families, the Department of
 3484  Education, the Department of Economic Opportunity, and the
 3485  Agency for Health Care Administration.
 3486         (8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 3487  private school may be sectarian or nonsectarian and must:
 3488         (a) Comply with all requirements for private schools
 3489  participating in state school choice scholarship programs
 3490  pursuant to s. 1002.421.
 3491         (b)1. Annually administer or make provision for students
 3492  participating in the scholarship program in grades 3 through 10
 3493  to take one of the nationally norm-referenced tests identified
 3494  by the Department of Education or the statewide assessments
 3495  pursuant to s. 1008.22. Students with disabilities for whom
 3496  standardized testing is not appropriate are exempt from this
 3497  requirement. A participating private school must report a
 3498  student’s scores to the parent. A participating private school
 3499  must annually report by August 15 the scores of all
 3500  participating students to a state university described in
 3501  paragraph (9)(f).
 3502         2. Administer the statewide assessments pursuant to s.
 3503  1008.22 if a private school chooses to offer the statewide
 3504  assessments. A participating private school may choose to offer
 3505  and administer the statewide assessments to all students who
 3506  attend the private school in grades 3 through 10 and must submit
 3507  a request in writing to the Department of Education by March 1
 3508  of each year in order to administer the statewide assessments in
 3509  the subsequent school year.
 3510  
 3511  If a private school fails to meet the requirements of this
 3512  subsection or s. 1002.421, the commissioner may determine that
 3513  the private school is ineligible to participate in the
 3514  scholarship program.
 3515         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of
 3516  Education shall:
 3517         (a) Annually submit to the department and division, by
 3518  March 15, a list of eligible nonprofit scholarship-funding
 3519  organizations that meet the requirements of paragraph (2)(f).
 3520         (b) Annually verify the eligibility of nonprofit
 3521  scholarship-funding organizations that meet the requirements of
 3522  paragraph (2)(f).
 3523         (c) Annually verify the eligibility of expenditures as
 3524  provided in paragraph (6)(d) using the audit required by
 3525  paragraph (6)(m) and s. 11.45(2)(l).
 3526         (d) Cross-check the list of participating scholarship
 3527  students with the public school enrollment lists to avoid
 3528  duplication.
 3529         (e) Maintain a list of nationally norm-referenced tests
 3530  identified for purposes of satisfying the testing requirement in
 3531  subparagraph (8)(b)1. The tests must meet industry standards of
 3532  quality in accordance with State Board of Education rule.
 3533         (f) Issue a project grant award to a state university, to
 3534  which participating private schools must report the scores of
 3535  participating students on the nationally norm-referenced tests
 3536  or the statewide assessments administered by the private school
 3537  in grades 3 through 10. The project term is 2 years, and the
 3538  amount of the project is up to $250,000 per year. The project
 3539  grant award must be reissued in 2-year intervals in accordance
 3540  with this paragraph.
 3541         1. The state university must annually report to the
 3542  Department of Education on the student performance of
 3543  participating students:
 3544         a. On a statewide basis. The report shall also include, to
 3545  the extent possible, a comparison of scholarship students’
 3546  performance to the statewide student performance of public
 3547  school students with socioeconomic backgrounds similar to those
 3548  of students participating in the scholarship program. To
 3549  minimize costs and reduce time required for the state
 3550  university’s analysis and evaluation, the Department of
 3551  Education shall coordinate with the state university to provide
 3552  data to the state university in order to conduct analyses of
 3553  matched students from public school assessment data and
 3554  calculate control group student performance using an agreed-upon
 3555  methodology with the state university; and
 3556         b. On an individual school basis. The annual report must
 3557  include student performance for each participating private
 3558  school in which at least 51 percent of the total enrolled
 3559  students in the private school participated in the Florida Tax
 3560  Credit Scholarship Program in the prior school year. The report
 3561  shall be according to each participating private school, and for
 3562  participating students, in which there are at least 30
 3563  participating students who have scores for tests administered.
 3564  If the state university determines that the 30-participating
 3565  student cell size may be reduced without disclosing personally
 3566  identifiable information, as described in 34 C.F.R. s. 99.12, of
 3567  a participating student, the state university may reduce the
 3568  participating-student cell size, but the cell size must not be
 3569  reduced to less than 10 participating students. The department
 3570  shall provide each private school’s prior school year’s student
 3571  enrollment information to the state university no later than
 3572  June 15 of each year, or as requested by the state university.
 3573         2. The sharing and reporting of student performance data
 3574  under this paragraph must be in accordance with requirements of
 3575  ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g, the Family
 3576  Educational Rights and Privacy Act, and the applicable rules and
 3577  regulations issued pursuant thereto, and shall be for the sole
 3578  purpose of creating the annual report required by subparagraph
 3579  1. All parties must preserve the confidentiality of such
 3580  information as required by law. The annual report must not
 3581  disaggregate data to a level that will identify individual
 3582  participating schools, except as required under sub-subparagraph
 3583  1.b., or disclose the academic level of individual students.
 3584         3. The annual report required by subparagraph 1. shall be
 3585  published by the Department of Education on its website.
 3586         (g) Notify an eligible nonprofit scholarship-funding
 3587  organization of any of the organization’s identified students
 3588  who are receiving educational scholarships pursuant to chapter
 3589  1002.
 3590         (h) Notify an eligible nonprofit scholarship-funding
 3591  organization of any of the organization’s identified students
 3592  who are receiving tax credit scholarships from other eligible
 3593  nonprofit scholarship-funding organizations.
 3594         (i) Require quarterly reports by an eligible nonprofit
 3595  scholarship-funding organization regarding the number of
 3596  students participating in the scholarship program, the private
 3597  schools at which the students are enrolled, and other
 3598  information deemed necessary by the Department of Education.
 3599         (j) Provide a process to match the direct certification
 3600  list with the scholarship application data submitted by any
 3601  nonprofit scholarship-funding organization eligible to receive
 3602  the 3-percent administrative allowance under paragraph (6)(j).
 3603         (10) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 3604         (a) Upon the request of any eligible nonprofit scholarship
 3605  funding organization, a school district shall inform all
 3606  households within the district receiving free or reduced-priced
 3607  meals under the National School Lunch Act of their eligibility
 3608  to apply for a tax credit scholarship. The form of such notice
 3609  shall be provided by the eligible nonprofit scholarship-funding
 3610  organization, and the district shall include the provided form,
 3611  if requested by the organization, in any normal correspondence
 3612  with eligible households. If an eligible nonprofit scholarship
 3613  funding organization requests a special communication to be
 3614  issued to households within the district receiving free or
 3615  reduced-price meals under the National School Lunch Act, the
 3616  organization shall reimburse the district for the cost of
 3617  postage. Such notice is limited to once a year.
 3618         (b) Upon the request of the Department of Education, a
 3619  school district shall coordinate with the department to provide
 3620  to a participating private school the statewide assessments
 3621  administered under s. 1008.22 and any related materials for
 3622  administering the assessments. A school district is responsible
 3623  for implementing test administrations at a participating private
 3624  school, including the:
 3625         1. Provision of training for private school staff on test
 3626  security and assessment administration procedures;
 3627         2. Distribution of testing materials to a private school;
 3628         3. Retrieval of testing materials from a private school;
 3629         4. Provision of the required format for a private school to
 3630  submit information to the district for test administration and
 3631  enrollment purposes; and
 3632         5. Provision of any required assistance, monitoring, or
 3633  investigation at a private school.
 3634         (11) SCHOLARSHIP AMOUNT AND PAYMENT.—
 3635         (a) The scholarship amount provided to any student for any
 3636  single school year by an eligible nonprofit scholarship-funding
 3637  organization from eligible contributions shall be for total
 3638  costs authorized under paragraph (6)(d), not to exceed annual
 3639  limits, which shall be determined as follows:
 3640         1. For a student who received a scholarship in the 2018
 3641  2019 school year, who remains eligible, and who is enrolled in
 3642  an eligible private school, the amount shall be the greater
 3643  amount calculated pursuant to subparagraph 2. or a percentage of
 3644  the unweighted FTE funding amount for the 2018-2019 state fiscal
 3645  year and thereafter as follows:
 3646         a. Eighty-eight percent for a student enrolled in
 3647  kindergarten through grade 5.
 3648         b. Ninety-two percent for a student enrolled in grade 6
 3649  through grade 8.
 3650         c. Ninety-six percent for a student enrolled in grade 9
 3651  through grade 12.
 3652         2. For students initially eligible in the 2019-2020 school
 3653  year or thereafter, the calculated amount for a student to
 3654  attend an eligible private school shall be based upon the grade
 3655  level and school district in which the student resides as 95
 3656  percent of the funds per unweighted full-time equivalent in the
 3657  Florida Education Finance Program for a student in the basic
 3658  program established pursuant to s. 1011.62(1)(c)1., plus a per
 3659  full-time equivalent share of funds for all categorical
 3660  programs, except for the Exceptional Student Education
 3661  Guaranteed Allocation.
 3662         3. The scholarship amount awarded to a student enrolled in
 3663  a Florida public school in which a student is enrolled and that
 3664  is different from the school to which the student was assigned
 3665  or in a lab school as defined in s. 1002.32, is limited to $750.
 3666         (b) Payment of the scholarship by the eligible nonprofit
 3667  scholarship-funding organization shall be by individual warrant
 3668  made payable to the student’s parent or by funds transfer,
 3669  including, but not limited to, debit cards, electronic payment
 3670  cards, or any other means of payment that the department deems
 3671  to be commercially viable or cost-effective. If the payment is
 3672  made by warrant, the warrant must be delivered by the eligible
 3673  nonprofit scholarship-funding organization to the private school
 3674  of the parent’s choice, and the parent shall restrictively
 3675  endorse the warrant to the private school. An eligible nonprofit
 3676  scholarship-funding organization shall ensure that the parent to
 3677  whom the warrant is made restrictively endorsed the warrant to
 3678  the private school for deposit into the account of the private
 3679  school or that the parent has approved a funds transfer before
 3680  any scholarship funds are deposited.
 3681         (c) An eligible nonprofit scholarship-funding organization
 3682  shall obtain verification from the private school of a student’s
 3683  continued attendance at the school for each period covered by a
 3684  scholarship payment.
 3685         (d) Payment of the scholarship shall be made by the
 3686  eligible nonprofit scholarship-funding organization no less
 3687  frequently than on a quarterly basis.
 3688         (12) ADMINISTRATION; RULES.—
 3689         (a) The department, the division, and the Department of
 3690  Education shall develop a cooperative agreement to assist in the
 3691  administration of this section.
 3692         (b) The department shall adopt rules necessary to
 3693  administer this section and ss. 211.0251, 212.1831, 220.1875,
 3694  561.1211, and 624.51055, including rules establishing
 3695  application forms, procedures governing the approval of tax
 3696  credits and carryforward tax credits under subsection (5), and
 3697  procedures to be followed by taxpayers when claiming approved
 3698  tax credits on their returns.
 3699         (c) The division shall adopt rules necessary to administer
 3700  its responsibilities under this section and s. 561.1211.
 3701         (d) The State Board of Education shall adopt rules to
 3702  administer the responsibilities of the Department of Education
 3703  and the Commissioner of Education under this section.
 3704         (4)(13) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.—All eligible
 3705  contributions received by the department or the division or
 3706  transferred by an eligible nonprofit scholarship-funding
 3707  organization shall be deposited into a designated student fund
 3708  and used for K-12 education funding in a manner consistent with
 3709  s. 17.57(2).
 3710         (14) PRESERVATION OF CREDIT.—If any provision or portion of
 3711  this section, s. 211.0251, s. 212.1831, s. 220.1875, s.
 3712  561.1211, or s. 624.51055 or the application thereof to any
 3713  person or circumstance is held unconstitutional by any court or
 3714  is otherwise declared invalid, the unconstitutionality or
 3715  invalidity shall not affect any credit earned under s. 211.0251,
 3716  s. 212.1831, s. 220.1875, s. 561.1211, or s. 624.51055 by any
 3717  taxpayer with respect to any contribution paid to an eligible
 3718  nonprofit scholarship-funding organization before the date of a
 3719  determination of unconstitutionality or invalidity. Such credit
 3720  shall be allowed at such time and in such a manner as if a
 3721  determination of unconstitutionality or invalidity had not been
 3722  made, provided that nothing in this subsection by itself or in
 3723  combination with any other provision of law shall result in the
 3724  allowance of any credit to any taxpayer in excess of one dollar
 3725  of credit for each dollar paid to an eligible nonprofit
 3726  scholarship-funding organization.
 3727         (15) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 3728  APPLICATION.—In order to participate in the scholarship program
 3729  created under this section, a charitable organization that seeks
 3730  to be a nonprofit scholarship-funding organization must submit
 3731  an application for initial approval or renewal to the Office of
 3732  Independent Education and Parental Choice no later than
 3733  September 1 of each year before the school year for which the
 3734  organization intends to offer scholarships.
 3735         (a) An application for initial approval must include:
 3736         1. A copy of the organization’s incorporation documents and
 3737  registration with the Division of Corporations of the Department
 3738  of State.
 3739         2. A copy of the organization’s Internal Revenue Service
 3740  determination letter as a s. 501(c)(3) not-for-profit
 3741  organization.
 3742         3. A description of the organization’s financial plan that
 3743  demonstrates sufficient funds to operate throughout the school
 3744  year.
 3745         4. A description of the geographic region that the
 3746  organization intends to serve and an analysis of the demand and
 3747  unmet need for eligible students in that area.
 3748         5. The organization’s organizational chart.
 3749         6. A description of the criteria and methodology that the
 3750  organization will use to evaluate scholarship eligibility.
 3751         7. A description of the application process, including
 3752  deadlines and any associated fees.
 3753         8. A description of the deadlines for attendance
 3754  verification and scholarship payments.
 3755         9. A copy of the organization’s policies on conflict of
 3756  interest and whistleblowers.
 3757         10. A copy of a surety bond or letter of credit to secure
 3758  the faithful performance of the obligations of the eligible
 3759  nonprofit scholarship-funding organization in accordance with
 3760  this section in an amount equal to 25 percent of the scholarship
 3761  funds anticipated for each school year or $100,000, whichever is
 3762  greater. The surety bond or letter of credit must specify that
 3763  any claim against the bond or letter of credit may be made only
 3764  by an eligible nonprofit scholarship-funding organization to
 3765  provide scholarships to and on behalf of students who would have
 3766  had scholarships funded if it were not for the diversion of
 3767  funds giving rise to the claim against the bond or letter of
 3768  credit.
 3769         (b) In addition to the information required by
 3770  subparagraphs (a)1.-9., an application for renewal must include:
 3771         1. A surety bond or letter of credit to secure the faithful
 3772  performance of the obligations of the eligible nonprofit
 3773  scholarship-funding organization in accordance with this section
 3774  equal to the amount of undisbursed donations held by the
 3775  organization based on the annual report submitted pursuant to
 3776  paragraph (6)(m). The amount of the surety bond or letter of
 3777  credit must be at least $100,000, but not more than $25 million.
 3778  The surety bond or letter of credit must specify that any claim
 3779  against the bond or letter of credit may be made only by an
 3780  eligible nonprofit scholarship-funding organization to provide
 3781  scholarships to and on behalf of students who would have had
 3782  scholarships funded if it were not for the diversion of funds
 3783  giving rise to the claim against the bond or letter of credit.
 3784         2. The organization’s completed Internal Revenue Service
 3785  Form 990 submitted no later than November 30 of the year before
 3786  the school year that the organization intends to offer the
 3787  scholarships, notwithstanding the September 1 application
 3788  deadline.
 3789         3. A copy of the statutorily required audit to the
 3790  Department of Education and Auditor General.
 3791         4. An annual report that includes:
 3792         a. The number of students who completed applications, by
 3793  county and by grade.
 3794         b. The number of students who were approved for
 3795  scholarships, by county and by grade.
 3796         c. The number of students who received funding for
 3797  scholarships within each funding category, by county and by
 3798  grade.
 3799         d. The amount of funds received, the amount of funds
 3800  distributed in scholarships, and an accounting of remaining
 3801  funds and the obligation of those funds.
 3802         e. A detailed accounting of how the organization spent the
 3803  administrative funds allowable under paragraph (6)(j).
 3804         (c) In consultation with the Department of Revenue and the
 3805  Chief Financial Officer, the Office of Independent Education and
 3806  Parental Choice shall review the application. The Department of
 3807  Education shall notify the organization in writing of any
 3808  deficiencies within 30 days after receipt of the application and
 3809  allow the organization 30 days to correct any deficiencies.
 3810         (d) Within 30 days after receipt of the finalized
 3811  application by the Office of Independent Education and Parental
 3812  Choice, the Commissioner of Education shall recommend approval
 3813  or disapproval of the application to the State Board of
 3814  Education. The State Board of Education shall consider the
 3815  application and recommendation at the next scheduled meeting,
 3816  adhering to appropriate meeting notice requirements. If the
 3817  State Board of Education disapproves the organization’s
 3818  application, it shall provide the organization with a written
 3819  explanation of that determination. The State Board of
 3820  Education’s action is not subject to chapter 120.
 3821         (e) If the State Board of Education disapproves the renewal
 3822  of a nonprofit scholarship-funding organization, the
 3823  organization must notify the affected eligible students and
 3824  parents of the decision within 15 days after disapproval. An
 3825  eligible student affected by the disapproval of an
 3826  organization’s participation remains eligible under this section
 3827  until the end of the school year in which the organization was
 3828  disapproved. The student must apply and be accepted by another
 3829  eligible nonprofit scholarship-funding organization for the
 3830  upcoming school year. The student shall be given priority in
 3831  accordance with paragraph (6)(f).
 3832         (f) All remaining funds held by a nonprofit scholarship
 3833  funding organization that is disapproved for participation must
 3834  be transferred to other eligible nonprofit scholarship-funding
 3835  organizations to provide scholarships for eligible students. All
 3836  transferred funds must be deposited by each eligible nonprofit
 3837  scholarship-funding organization receiving such funds into its
 3838  scholarship account. All transferred amounts received by any
 3839  eligible nonprofit scholarship-funding organization must be
 3840  separately disclosed in the annual financial audit required
 3841  under subsection (6).
 3842         (g) A nonprofit scholarship-funding organization is a
 3843  renewing organization if it maintains continuous approval and
 3844  participation in the program. An organization that chooses not
 3845  to participate for 1 year or more or is disapproved to
 3846  participate for 1 year or more must submit an application for
 3847  initial approval in order to participate in the program again.
 3848         (h) The State Board of Education shall adopt rules
 3849  providing guidelines for receiving, reviewing, and approving
 3850  applications for new and renewing nonprofit scholarship-funding
 3851  organizations. The rules must include a process for compiling
 3852  input and recommendations from the Chief Financial Officer, the
 3853  Department of Revenue, and the Department of Education. The
 3854  rules must also require that the nonprofit scholarship-funding
 3855  organization make a brief presentation to assist the State Board
 3856  of Education in its decision.
 3857         (i) A state university; or an independent college or
 3858  university which is eligible to participate in the William L.
 3859  Boyd, IV, Effective Access to Student Education Grant Program,
 3860  located and chartered in this state, is not for profit, and is
 3861  accredited by the Commission on Colleges of the Southern
 3862  Association of Colleges and Schools, is exempt from the initial
 3863  or renewal application process, but must file a registration
 3864  notice with the Department of Education to be an eligible
 3865  nonprofit scholarship-funding organization. The State Board of
 3866  Education shall adopt rules that identify the procedure for
 3867  filing the registration notice with the department. The rules
 3868  must identify appropriate reporting requirements for fiscal,
 3869  programmatic, and performance accountability purposes consistent
 3870  with this section, but shall not exceed the requirements for
 3871  eligible nonprofit scholarship-funding organizations for
 3872  charitable organizations.
 3873         Section 21. Section 1002.40, Florida Statutes, is amended
 3874  to read:
 3875         1002.40 The Hope Scholarship Florida K-12 Education Funding
 3876  Tax Credit Program.—
 3877         (1) PURPOSE.—The Hope Scholarship Program is established to
 3878  provide the parent of a public school student who was subjected
 3879  to an incident listed in subsection (3) an opportunity to
 3880  transfer the student to another public school or to request a
 3881  scholarship for the student to enroll in and attend an eligible
 3882  private school.
 3883         (2) DEFINITIONS.—As used in this section, the term:
 3884         (a) “Dealer” has the same meaning as provided in s. 212.06.
 3885         (b) “Department” means the Department of Education.
 3886         (c) “Designated agent” has the same meaning as provided in
 3887  s. 212.06(10).
 3888         (c)(d) “Eligible contribution” or “contribution” means the
 3889  amount of tax paid by a monetary contribution from a person
 3890  purchasing a motor vehicle, subject to the restrictions provided
 3891  in this section, and designated by the purchaser to be used for
 3892  K-12 education funding an eligible nonprofit scholarship-funding
 3893  organization. The person making the contribution may not
 3894  designate a specific student as the beneficiary of the
 3895  contribution.
 3896         (e) “Eligible nonprofit scholarship-funding organization”
 3897  or “organization” has the same meaning as provided in s.
 3898  1002.395(2)(f).
 3899         (f) “Eligible private school” has the same meaning as
 3900  provided in s. 1002.395(2)(g).
 3901         (d)(g) “Motor vehicle” has the same meaning as provided in
 3902  s. 320.01(1)(a), but does not include a heavy truck, truck
 3903  tractor, trailer, or motorcycle.
 3904         (h) “Parent” means a resident of this state who is a
 3905  parent, as defined in s. 1000.21, and whose student reported an
 3906  incident in accordance with subsection (6).
 3907         (i) “Program” means the Hope Scholarship Program.
 3908         (j) “School” means any educational program or activity
 3909  conducted by a public K-12 educational institution, any school
 3910  related or school-sponsored program or activity, and riding on a
 3911  school bus, as defined in s. 1006.25(1), including waiting at a
 3912  school bus stop.
 3913         (k) “Unweighted FTE funding amount” means the statewide
 3914  average total funds per unweighted full-time equivalent funding
 3915  amount that is incorporated by reference in the General
 3916  Appropriations Act, or by a subsequent special appropriations
 3917  act, for the applicable state fiscal year.
 3918         (3) PROGRAM ELIGIBILITY.—Beginning with the 2018-2019
 3919  school year, contingent upon available funds, and on a first
 3920  come, first-served basis, a student enrolled in a Florida public
 3921  school in kindergarten through grade 12 is eligible for a
 3922  scholarship under this program if the student reported an
 3923  incident in accordance with subsection (6). For purposes of this
 3924  section, the term “incident” means battery; harassment; hazing;
 3925  bullying; kidnapping; physical attack; robbery; sexual offenses,
 3926  harassment, assault, or battery; threat or intimidation; or
 3927  fighting at school, as defined by the department in accordance
 3928  with s. 1006.09(6).
 3929         (4) PROGRAM PROHIBITIONS.—Payment of a scholarship to a
 3930  student enrolled in a private school may not be made if a
 3931  student is:
 3932         (a) Enrolled in a public school, including, but not limited
 3933  to, the Florida School for the Deaf and the Blind; the College
 3934  Preparatory Boarding Academy; a developmental research school
 3935  authorized under s. 1002.32; or a charter school authorized
 3936  under s. 1002.33, s. 1002.331, or s. 1002.332;
 3937         (b) Enrolled in a school operating for the purpose of
 3938  providing educational services to youth in the Department of
 3939  Juvenile Justice commitment programs;
 3940         (c) Participating in a virtual school, correspondence
 3941  school, or distance learning program that receives state funding
 3942  pursuant to the student’s participation unless the participation
 3943  is limited to no more than two courses per school year; or
 3944         (d) Receiving any other educational scholarship pursuant to
 3945  this chapter.
 3946         (5) TERM OF HOPE SCHOLARSHIP.—For purposes of continuity of
 3947  educational choice, a Hope scholarship shall remain in force
 3948  until the student returns to public school or graduates from
 3949  high school, whichever occurs first. A scholarship student who
 3950  enrolls in a public school or public school program is
 3951  considered to have returned to a public school for the purpose
 3952  of determining the end of the scholarship’s term.
 3953         (6) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 3954         (a) Upon receipt of a report of an incident, the school
 3955  principal, or his or her designee, shall provide a copy of the
 3956  report to the parent and investigate the incident to determine
 3957  if the incident must be reported as required by s. 1006.09(6).
 3958  Within 24 hours after receipt of the report, the principal or
 3959  his or her designee shall provide a copy of the report to the
 3960  parent of the alleged offender and to the superintendent. Upon
 3961  conclusion of the investigation or within 15 days after the
 3962  incident was reported, whichever occurs first, the school
 3963  district shall notify the parent of the program and offer the
 3964  parent an opportunity to enroll his or her student in another
 3965  public school that has capacity or to request and receive a
 3966  scholarship to attend an eligible private school, subject to
 3967  available funding. A parent who chooses to enroll his or her
 3968  student in a public school located outside the district in which
 3969  the student resides pursuant to s. 1002.31 shall be eligible for
 3970  a scholarship to transport the student as provided in paragraph
 3971  (11)(b).
 3972         (b) For each student participating in the program in an
 3973  eligible private school who chooses to participate in the
 3974  statewide assessments under s. 1008.22 or the Florida Alternate
 3975  Assessment, the school district in which the student resides
 3976  must notify the student and his or her parent about the
 3977  locations and times to take all statewide assessments.
 3978         (7) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 3979  private school may be sectarian or nonsectarian and shall:
 3980         (a) Comply with all requirements for private schools
 3981  participating in state school choice scholarship programs
 3982  pursuant to this section and s. 1002.421.
 3983         (b)1. Annually administer or make provision for students
 3984  participating in the program in grades 3 through 10 to take one
 3985  of the nationally norm-referenced tests identified by the
 3986  department or the statewide assessments pursuant to s. 1008.22.
 3987  Students with disabilities for whom standardized testing is not
 3988  appropriate are exempt from this requirement. A participating
 3989  private school shall report a student’s scores to his or her
 3990  parent.
 3991         2. Administer the statewide assessments pursuant to s.
 3992  1008.22 if a private school chooses to offer the statewide
 3993  assessments. A participating private school may choose to offer
 3994  and administer the statewide assessments to all students who
 3995  attend the private school in grades 3 through 10 and must submit
 3996  a request in writing to the department by March 1 of each year
 3997  in order to administer the statewide assessments in the
 3998  subsequent school year.
 3999  
 4000  If a private school fails to meet the requirements of this
 4001  subsection or s. 1002.421, the commissioner may determine that
 4002  the private school is ineligible to participate in the program.
 4003         (8) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 4004  shall:
 4005         (a) Cross-check the list of participating scholarship
 4006  students with the public school enrollment lists to avoid
 4007  duplication.
 4008         (b) Maintain a list of nationally norm-referenced tests
 4009  identified for purposes of satisfying the testing requirement in
 4010  paragraph (9)(f). The tests must meet industry standards of
 4011  quality in accordance with State Board of Education rule.
 4012         (c) Require quarterly reports by an eligible nonprofit
 4013  scholarship-funding organization regarding the number of
 4014  students participating in the program, the private schools in
 4015  which the students are enrolled, and other information deemed
 4016  necessary by the department.
 4017         (d) Contract with an independent entity to provide an
 4018  annual evaluation of the program by:
 4019         1. Reviewing the school bullying prevention education
 4020  program, climate, and code of student conduct of each public
 4021  school from which 10 or more students transferred to another
 4022  public school or private school using the Hope scholarship to
 4023  determine areas in the school or school district procedures
 4024  involving reporting, investigating, and communicating a parent’s
 4025  and student’s rights that are in need of improvement. At a
 4026  minimum, the review must include:
 4027         a. An assessment of the investigation time and quality of
 4028  the response of the school and the school district.
 4029         b. An assessment of the effectiveness of communication
 4030  procedures with the students involved in an incident, the
 4031  students’ parents, and the school and school district personnel.
 4032         c. An analysis of school incident and discipline data.
 4033         d. The challenges and obstacles relating to implementing
 4034  recommendations from the review.
 4035         2. Reviewing the school bullying prevention education
 4036  program, climate, and code of student conduct of each public
 4037  school to which a student transferred if the student was from a
 4038  school identified in subparagraph 1. in order to identify best
 4039  practices and make recommendations to a public school at which
 4040  the incidents occurred.
 4041         3. Reviewing the performance of participating students
 4042  enrolled in a private school in which at least 51 percent of the
 4043  total enrolled students in the prior school year participated in
 4044  the program and in which there are at least 10 participating
 4045  students who have scores for tests administered.
 4046         4. Surveying the parents of participating students to
 4047  determine academic, safety, and school climate satisfaction and
 4048  to identify any challenges to or obstacles in addressing the
 4049  incident or relating to the use of the scholarship.
 4050         (9) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 4051  PARTICIPATION.—A parent who applies for a Hope scholarship is
 4052  exercising his or her parental option to place his or her
 4053  student in an eligible private school.
 4054         (a) The parent must select an eligible private school and
 4055  apply for the admission of his or her student.
 4056         (b) The parent must inform the student’s school district
 4057  when the parent withdraws his or her student to attend an
 4058  eligible private school.
 4059         (c) Any student participating in the program must remain in
 4060  attendance throughout the school year unless excused by the
 4061  school for illness or other good cause.
 4062         (d) Each parent and each student has an obligation to the
 4063  private school to comply with such school’s published policies.
 4064         (e) Upon reasonable notice to the department and the school
 4065  district, the parent may remove the student from the private
 4066  school and place the student in a public school in accordance
 4067  with this section.
 4068         (f) The parent must ensure that the student participating
 4069  in the program takes the norm-referenced assessment offered by
 4070  the private school. The parent may also choose to have the
 4071  student participate in the statewide assessments pursuant to s.
 4072  1008.22. If the parent requests that the student take the
 4073  statewide assessments pursuant to s. 1008.22 and the private
 4074  school has not chosen to offer and administer the statewide
 4075  assessments, the parent is responsible for transporting the
 4076  student to the assessment site designated by the school
 4077  district.
 4078         (g) Upon receipt of a scholarship warrant, the parent to
 4079  whom the warrant is made must restrictively endorse the warrant
 4080  to the private school for deposit into the account of such
 4081  school. If payment is made by funds transfer in accordance with
 4082  paragraph (11)(d), the parent must approve each payment before
 4083  the scholarship funds may be deposited. The parent may not
 4084  designate any entity or individual associated with the
 4085  participating private school as the parent’s attorney in fact to
 4086  endorse a scholarship warrant or approve a funds transfer. A
 4087  parent who fails to comply with this paragraph forfeits the
 4088  scholarship.
 4089         (10) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
 4090  ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 4091  organization may establish scholarships for eligible students
 4092  by:
 4093         (a) Receiving applications and determining student
 4094  eligibility in accordance with the requirements of this section.
 4095         (b) Notifying parents of their receipt of a scholarship on
 4096  a first-come, first-served basis, based upon available funds.
 4097         (c) Establishing a date by which the parent of a
 4098  participating student must confirm continuing participation in
 4099  the program.
 4100         (d) Awarding scholarship funds to eligible students, giving
 4101  priority to renewing students from the previous year.
 4102         (e) Preparing and submitting quarterly reports to the
 4103  department pursuant to paragraph (8)(c). In addition, an
 4104  eligible nonprofit scholarship-funding organization must submit
 4105  in a timely manner any information requested by the department
 4106  relating to the program.
 4107         (f) Notifying the department of any violation of this
 4108  section.
 4109         (11) FUNDING AND PAYMENT.—
 4110         (a) For students initially eligible in the 2019-2020 school
 4111  year or thereafter, the calculated amount for a student to
 4112  attend an eligible private school shall be based upon the grade
 4113  level and school district in which the student was assigned as
 4114  95 percent of the funds per unweighted full-time equivalent in
 4115  the Florida Education Finance Program for a student in the basic
 4116  program established pursuant to s. 1011.62(1)(c)1., plus a per
 4117  full-time equivalent share of funds for all categorical
 4118  programs, except for the Exceptional Student Education
 4119  Guaranteed Allocation.
 4120         (b) The maximum amount awarded to a student enrolled in a
 4121  public school located outside of the district in which the
 4122  student resides shall be $750.
 4123         (c) When a student enters the program, the eligible
 4124  nonprofit scholarship-funding organization must receive all
 4125  documentation required for the student’s participation,
 4126  including a copy of the report of the incident received pursuant
 4127  to subsection (6) and the private school’s and student’s fee
 4128  schedules. The initial payment shall be made after verification
 4129  of admission acceptance, and subsequent payments shall be made
 4130  upon verification of continued enrollment and attendance at the
 4131  private school.
 4132         (d) Payment of the scholarship by the eligible nonprofit
 4133  scholarship-funding organization may be by individual warrant
 4134  made payable to the student’s parent or by funds transfer,
 4135  including, but not limited to, debit cards, electronic payment
 4136  cards, or any other means of payment that the department deems
 4137  to be commercially viable or cost-effective. If payment is made
 4138  by warrant, the warrant must be delivered by the eligible
 4139  nonprofit scholarship-funding organization to the private school
 4140  of the parent’s choice, and the parent shall restrictively
 4141  endorse the warrant to the private school. If payments are made
 4142  by funds transfer, the parent must approve each payment before
 4143  the scholarship funds may be deposited. The parent may not
 4144  designate any entity or individual associated with the
 4145  participating private school as the parent’s attorney in fact to
 4146  endorse a scholarship warrant or approve a funds transfer.
 4147         (e) An eligible nonprofit scholarship-funding organization
 4148  shall obtain verification from the private school of a student’s
 4149  continued attendance at the school for each period covered by a
 4150  scholarship payment.
 4151         (f) Payment of the scholarship shall be made by the
 4152  eligible nonprofit scholarship-funding organization no less
 4153  frequently than on a quarterly basis.
 4154         (g) An eligible nonprofit scholarship-funding organization,
 4155  subject to the limitations of s. 1002.395(6)(j)1., may use
 4156  eligible contributions received during the state fiscal year in
 4157  which such contributions are collected for administrative
 4158  expenses.
 4159         (h) Moneys received pursuant to this section do not
 4160  constitute taxable income to the qualified student or his or her
 4161  parent.
 4162         (i) Notwithstanding s. 1002.395(6)(j)2., no more than 5
 4163  percent of net eligible contributions may be carried forward to
 4164  the following state fiscal year by an eligible scholarship
 4165  funding organization. For audit purposes, all amounts carried
 4166  forward must be specifically identified for individual students
 4167  by student name and by the name of the school to which the
 4168  student is admitted, subject to the requirements of ss. 1002.21
 4169  and 1002.22 and 20 U.S.C. s. 1232g, and the applicable rules and
 4170  regulations issued pursuant to such requirements. Any amounts
 4171  carried forward shall be expended for annual scholarships or
 4172  partial-year scholarships in the following state fiscal year.
 4173  Net eligible contributions remaining on June 30 of each year
 4174  which are in excess of the 5 percent that may be carried forward
 4175  shall be transferred to other eligible nonprofit scholarship
 4176  funding organizations participating in the Hope Scholarship
 4177  Program to provide scholarships for eligible students. All
 4178  transferred funds must be deposited by each eligible nonprofit
 4179  scholarship-funding organization receiving such funds into the
 4180  scholarship account of eligible students. All transferred
 4181  amounts received by an eligible nonprofit scholarship-funding
 4182  organization must be separately disclosed in the annual
 4183  financial audit requirement under s. 1002.395(6)(m). If no other
 4184  eligible nonprofit scholarship-funding organization participates
 4185  in the Hope Scholarship Program, net eligible contributions in
 4186  excess of the 5 percent may be used to fund scholarships for
 4187  students eligible under s. 1002.395 only after fully exhausting
 4188  all contributions made in support of scholarships under that
 4189  section in accordance with the priority established in s.
 4190  1002.395(6)(e) prior to awarding any initial scholarships.
 4191         (12) OBLIGATIONS OF THE AUDITOR GENERAL.—
 4192         (a) The Auditor General shall conduct an annual operational
 4193  audit of accounts and records of each organization that
 4194  participates in the program. As part of this audit, the Auditor
 4195  General shall verify, at a minimum, the total number of students
 4196  served and transmit that information to the department. The
 4197  Auditor General shall provide the commissioner with a copy of
 4198  each annual operational audit performed pursuant to this
 4199  paragraph within 10 days after the audit is finalized.
 4200         (b) The Auditor General shall notify the department of any
 4201  organization that fails to comply with a request for
 4202  information.
 4203         (2)(13) SCHOLARSHIP FUNDING TAX CREDITS.—
 4204         (a) A tax credit is available under s. 212.1832(1) for use
 4205  by a person that makes an eligible contribution. Eligible
 4206  contributions shall be used for K-12 education funding to fund
 4207  scholarships under this section and may be used to fund
 4208  scholarships under s. 1002.395. Each eligible contribution is
 4209  limited to a single designation payment of $105 per motor
 4210  vehicle purchased at the time of purchase of a motor vehicle or
 4211  a single designation payment of $105 per motor vehicle purchased
 4212  at the time of registration of a motor vehicle that was not
 4213  purchased from a dealer, except that a contribution may not
 4214  exceed the state tax imposed under chapter 212 that would
 4215  otherwise be collected from the purchaser by a dealer,
 4216  designated agent, or private tag agent. Payments of
 4217  contributions shall be made to a dealer at the time of purchase
 4218  of a motor vehicle or to a designated agent or private tag agent
 4219  at the time of registration of a motor vehicle that was not
 4220  purchased from a dealer. An eligible contribution shall be
 4221  accompanied by a contribution election form provided by the
 4222  Department of Revenue. The form shall include, at a minimum, the
 4223  following brief description of the Hope Scholarship Program and
 4224  the Florida Tax Credit Scholarship Program: “THE HOPE
 4225  SCHOLARSHIP PROGRAM PROVIDES A PUBLIC SCHOOL STUDENT WHO WAS
 4226  SUBJECTED TO AN INCIDENT OF VIOLENCE OR BULLYING AT SCHOOL THE
 4227  OPPORTUNITY TO APPLY FOR A SCHOLARSHIP TO ATTEND AN ELIGIBLE
 4228  PRIVATE SCHOOL RATHER THAN REMAIN IN AN UNSAFE SCHOOL
 4229  ENVIRONMENT. THE FLORIDA TAX CREDIT SCHOLARSHIP PROGRAM PROVIDES
 4230  A LOW-INCOME STUDENT THE OPPORTUNITY TO APPLY FOR A SCHOLARSHIP
 4231  TO ATTEND AN ELIGIBLE PRIVATE SCHOOL.” The form shall also
 4232  include, at a minimum, a section allowing the consumer to
 4233  designate, from all participating scholarship funding
 4234  organizations, which organization will receive his or her
 4235  donation. For purposes of this subsection, the term “purchase”
 4236  does not include the lease or rental of a motor vehicle.
 4237         (b) A dealer, designated agent, or private tag agent shall:
 4238         1. Provide the purchaser the contribution election form, as
 4239  provided by the Department of Revenue, at the time of purchase
 4240  of a motor vehicle or at the time of registration of a motor
 4241  vehicle that was not purchased from a dealer.
 4242         2. Collect eligible contributions.
 4243         3. Using a form provided by the Department of Revenue,
 4244  which shall include the dealer’s or agent’s federal employer
 4245  identification number, remit to an organization no later than
 4246  the date the return filed pursuant to s. 212.11 is due the total
 4247  amount of contributions made to that organization and collected
 4248  during the preceding reporting period. Using the same form, the
 4249  dealer or agent shall also report this information to the
 4250  Department of Revenue no later than the date the return filed
 4251  pursuant to s. 212.11 is due.
 4252         4. report to the Department of Revenue on each return filed
 4253  pursuant to s. 212.11 the total amount of credits granted under
 4254  s. 212.1832 for the preceding reporting period.
 4255         (c) An organization shall report to and the Department of
 4256  Revenue shall deposit all receipts held or designated as
 4257  eligible contributions into a designated student fund, on or
 4258  before the 20th day of each month, the total amount of
 4259  contributions received pursuant to paragraph (b) in the
 4260  preceding calendar month on a form provided by the Department of
 4261  Revenue. Such report shall include:
 4262         1. The federal employer identification number of each
 4263  designated agent, private tag agent, or dealer who remitted
 4264  contributions to the organization during that reporting period.
 4265         2. The amount of contributions received from each
 4266  designated agent, private tag agent, or dealer during that
 4267  reporting period.
 4268         (d) A person who, with the intent to unlawfully deprive or
 4269  defraud the program of its moneys or the use or benefit thereof,
 4270  fails to remit a contribution collected under this section is
 4271  guilty of theft, punishable as follows:
 4272         1. If the total amount stolen is less than $300, the
 4273  offense is a misdemeanor of the second degree, punishable as
 4274  provided in s. 775.082 or s. 775.083. Upon a second conviction,
 4275  the offender is guilty of a misdemeanor of the first degree,
 4276  punishable as provided in s. 775.082 or s. 775.083. Upon a third
 4277  or subsequent conviction, the offender is guilty of a felony of
 4278  the third degree, punishable as provided in s. 775.082, s.
 4279  775.083, or s. 775.084.
 4280         2. If the total amount stolen is $300 or more, but less
 4281  than $20,000, the offense is a felony of the third degree,
 4282  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 4283         3. If the total amount stolen is $20,000 or more, but less
 4284  than $100,000, the offense is a felony of the second degree,
 4285  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 4286         4. If the total amount stolen is $100,000 or more, the
 4287  offense is a felony of the first degree, punishable as provided
 4288  in s. 775.082, s. 775.083, or s. 775.084.
 4289         (e) A person convicted of an offense under paragraph (d)
 4290  shall be ordered by the sentencing judge to make restitution to
 4291  the organization in the amount that was stolen from the program.
 4292         (f) Upon a finding that a dealer failed to remit a
 4293  contribution under subparagraph (b)3. for which the dealer
 4294  claimed a credit pursuant to s. 212.1832(2), the Department of
 4295  Revenue shall notify the affected organizations of the dealer’s
 4296  name, address, federal employer identification number, and
 4297  information related to differences between credits taken by the
 4298  dealer pursuant to s. 212.1832(2) and amounts remitted to the
 4299  eligible nonprofit scholarship-funding organization under
 4300  subparagraph (b)3.
 4301         (g) Any dealer, designated agent, private tag agent, or
 4302  organization that fails to timely submit reports to the
 4303  Department of Revenue as required in paragraphs (b) and (c) is
 4304  subject to a penalty of $1,000 for every month, or part thereof,
 4305  the report is not provided, up to a maximum amount of $10,000.
 4306  Such penalty shall be collected by the Department of Revenue and
 4307  shall be transferred into the General Revenue Fund. Such penalty
 4308  must be settled or compromised if it is determined by the
 4309  Department of Revenue that the noncompliance is due to
 4310  reasonable cause and not due to willful negligence, willful
 4311  neglect, or fraud.
 4312         (14) LIABILITY.—The state is not liable for the award of or
 4313  any use of awarded funds under this section.
 4314         (15) SCOPE OF AUTHORITY.—This section does not expand the
 4315  regulatory authority of this state, its officers, or any school
 4316  district to impose additional regulation on participating
 4317  private schools beyond those reasonably necessary to enforce
 4318  requirements expressly set forth in this section.
 4319         (3)(16) RULES.—The State Board of Education shall adopt
 4320  rules to administer this section, except the Department of
 4321  Revenue shall adopt rules to administer this section subsection
 4322  (13).
 4323         Section 22. Subsection (4) of section 1002.411, Florida
 4324  Statutes, is amended to read:
 4325         1002.411 Reading scholarship accounts.—
 4326         (4) ADMINISTRATION.—An eligible nonprofit scholarship
 4327  funding organization participating in a scholarship program
 4328  under this chapter the Florida Tax Credit Scholarship Program
 4329  established by s. 1002.395 may establish reading scholarship
 4330  accounts for eligible students in accordance with the
 4331  requirements of eligible nonprofit scholarship-funding
 4332  organizations under this chapter.
 4333         Section 23. Paragraphs (i) and (q) of subsection (1) of
 4334  section 1002.421, Florida Statutes, are amended, and paragraph
 4335  (r) is added to that subsection, to read:
 4336         1002.421 State school choice scholarship program
 4337  accountability and oversight.—
 4338         (1) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—A private
 4339  school participating in an educational scholarship program
 4340  established pursuant to this chapter must be a private school as
 4341  defined in s. 1002.01(2) in this state, be registered, and be in
 4342  compliance with all requirements of this section in addition to
 4343  private school requirements outlined in s. 1002.42, specific
 4344  requirements identified within respective scholarship program
 4345  laws, and other provisions of Florida law that apply to private
 4346  schools, and must:
 4347         (i)1. Maintain a physical location in the state at which
 4348  each student has regular and direct contact with teachers; or
 4349         2. If the private school is a private virtual school, have
 4350  at least one administrative office located in this state at
 4351  which all of its administrative staff are Florida residents.
 4352         (q) Provide a report from an independent certified public
 4353  accountant who performs the agreed-upon procedures developed
 4354  pursuant to s. 1002.394(11)(g) s. 1002.395(6)(o) if the private
 4355  school receives more than $250,000 in funds from scholarships
 4356  awarded under this chapter in a state fiscal year. A private
 4357  school subject to this subsection must annually submit the
 4358  report by September 15 to the scholarship-funding organization
 4359  that awarded the majority of the school’s scholarship funds.
 4360  However, for the 2020-2021 school year only, a school that
 4361  receives more than $250,000 in scholarship funds only through
 4362  the John M. McKay Scholarship for Students with Disabilities
 4363  Program pursuant to s. 1002.39 must submit the annual report by
 4364  September 15 to the department. The agreed-upon procedures must
 4365  be conducted in accordance with attestation standards
 4366  established by the American Institute of Certified Public
 4367  Accountants.
 4368         (r) Provide to parents and students enrolled in a private
 4369  virtual school specific information posted and accessible online
 4370  which includes, but is not limited to, all of the following
 4371  teacher-parent and teacher-student contact information for each
 4372  course:
 4373         1. How to contact the instructor, technical support staff,
 4374  and the administration office by phone, e-mail, or online
 4375  messaging tools.
 4376         2. Requirements for regular contact with the instructor for
 4377  the course and clear expectations for meeting such requirements.
 4378         3. Requirements that the instructor of each course must, at
 4379  a minimum, conduct one contact with the parent and student each
 4380  month.
 4381  
 4382  The department shall suspend the payment of funds to a private
 4383  school that knowingly fails to comply with this subsection, and
 4384  shall prohibit the school from enrolling new scholarship
 4385  students, for 1 fiscal year and until the school complies. If a
 4386  private school fails to meet the requirements of this subsection
 4387  or has consecutive years of material exceptions listed in the
 4388  report required under paragraph (q), the commissioner may
 4389  determine that the private school is ineligible to participate
 4390  in a scholarship program.
 4391         Section 24. Paragraph (aa) of subsection (4) of section
 4392  1009.971, Florida Statutes, is amended to read:
 4393         1009.971 Florida Prepaid College Board.—
 4394         (4) FLORIDA PREPAID COLLEGE BOARD; POWERS AND DUTIES.—The
 4395  board shall have the powers and duties necessary or proper to
 4396  carry out the provisions of ss. 1009.97-1009.988, including, but
 4397  not limited to, the power and duty to:
 4398         (aa) Adopt rules relating to the purchase and use of a
 4399  prepaid college plan authorized under s. 1009.98 or a college
 4400  savings plan authorized under s. 1009.981 for the McKay-Gardiner
 4401  Gardiner Scholarship Program pursuant to s. 1002.381 or the
 4402  Family Empowerment Scholarship Program pursuant to s. 1002.394
 4403  s. 1002.385, which may include, but need not be limited to:
 4404         1. The use of such funds for postsecondary education
 4405  programs for students with disabilities;
 4406         2. Effective procedures that allow program funds to be used
 4407  in conjunction with other funds used by a parent in the purchase
 4408  of a prepaid college plan or a college savings plan;
 4409         3. The tracking and accounting of program funds separately
 4410  from other funds contributed to a prepaid college plan or a
 4411  college savings plan;
 4412         4. The reversion of program funds, including, but not
 4413  limited to, earnings from contributions to the Florida College
 4414  Savings Plan;
 4415         5. The use of program funds only after private payments
 4416  have been used for prepaid college plan or college savings plan
 4417  expenditures;
 4418         6. Contracting with each eligible nonprofit scholarship
 4419  funding organization to establish mechanisms to implement ss.
 4420  1002.381 and 1002.394 s. 1002.385, including, but not limited
 4421  to, identifying the source of funds being deposited in the
 4422  plans; and
 4423         7. The development of a written agreement that defines the
 4424  owner and beneficiary of an account and outlines
 4425  responsibilities for the use of the advance payment contract
 4426  funds or savings program funds.
 4427         Section 25. Subsection (11) of section 1009.98, Florida
 4428  Statutes, is amended to read:
 4429         1009.98 Stanley G. Tate Florida Prepaid College Program.—
 4430         (11) IMPLEMENTATION PROCEDURES.—
 4431         (a) A prepaid college plan may be purchased, accounted for,
 4432  used, and terminated as provided in ss. 1002.381 and 1002.394 s.
 4433  1002.385.
 4434         (b) A qualified beneficiary may apply the benefits of an
 4435  advance payment contract toward the program fees of a program
 4436  designed for students with disabilities conducted by a state
 4437  postsecondary institution. A transfer authorized under this
 4438  subsection may not exceed the redemption value of the advance
 4439  payment contract at a state postsecondary institution or the
 4440  number of semester credit hours contracted on behalf of a
 4441  qualified beneficiary. A qualified beneficiary may not be
 4442  changed while a prepaid college plan contains funds contributed
 4443  under ss. 1002.381 and 1002.394 s. 1002.385.
 4444         Section 26. Subsection (10) of section 1009.981, Florida
 4445  Statutes, is amended to read:
 4446         1009.981 Florida College Savings Program.—
 4447         (10) IMPLEMENTATION PROCEDURES.—
 4448         (a) A college savings plan may be purchased, accounted for,
 4449  used, and terminated as provided in ss. 1002.381 and 1002.394 s.
 4450  1002.385.
 4451         (b) A designated beneficiary may apply the benefits of a
 4452  participation agreement toward the program fees of a program
 4453  designed for students with disabilities conducted by a state
 4454  postsecondary institution. A designated beneficiary may not be
 4455  changed while a college savings plan contains funds contributed
 4456  under ss. 1002.381 and 1002.394 s. 1002.385.
 4457         Section 27. Subsection (4) of section 1011.61, Florida
 4458  Statutes, is amended to read:
 4459         1011.61 Definitions.—Notwithstanding the provisions of s.
 4460  1000.21, the following terms are defined as follows for the
 4461  purposes of the Florida Education Finance Program:
 4462         (4) The maximum value for funding a student in kindergarten
 4463  through grade 12 or in a prekindergarten program for exceptional
 4464  children as provided in s. 1003.21(1)(e) shall be the sum of the
 4465  calculations in paragraphs (a), (b), and (c) as calculated by
 4466  the department.
 4467         (a) The sum of the student’s full-time equivalent student
 4468  membership value for the school year or the equivalent derived
 4469  from paragraphs (1)(a) and (b), subparagraph (1)(c)1., sub
 4470  subparagraphs (1)(c)2.b. and c., subparagraph (1)(c)3., and
 4471  subsection (2). If the sum is greater than 1.0, the full-time
 4472  equivalent student membership value for each program or course
 4473  shall be reduced by an equal proportion so that the student’s
 4474  total full-time equivalent student membership value is equal to
 4475  1.0.
 4476         (b) If the result in paragraph (a) is less than 1.0 full
 4477  time equivalent student and the student has full-time equivalent
 4478  student enrollment pursuant to sub-sub-subparagraph
 4479  (1)(c)1.b.(VIII), calculate an amount that is the lesser of the
 4480  value in sub-sub-subparagraph (1)(c)1.b.(VIII) or the value of
 4481  1.0 less the value in paragraph (a).
 4482         (c) The full-time equivalent student enrollment value in
 4483  sub-subparagraph (1)(c)2.a.
 4484  
 4485  A scholarship award provided to a student enrolled in the John
 4486  M. McKay Scholarships for Students with Disabilities Program
 4487  pursuant to s. 1002.39 is not subject to the maximum value for
 4488  funding a student under this subsection.
 4489         Section 28. Paragraph (f) of subsection (18) of section
 4490  1011.62, Florida Statutes, is amended to read:
 4491         1011.62 Funds for operation of schools.—If the annual
 4492  allocation from the Florida Education Finance Program to each
 4493  district for operation of schools is not determined in the
 4494  annual appropriations act or the substantive bill implementing
 4495  the annual appropriations act, it shall be determined as
 4496  follows:
 4497         (18) TEACHER SALARY INCREASE ALLOCATION.—The Legislature
 4498  may annually provide in the Florida Education Finance Program a
 4499  teacher salary increase allocation to assist school districts in
 4500  their recruitment and retention of classroom teachers and other
 4501  instructional personnel. The amount of the allocation shall be
 4502  specified in the General Appropriations Act.
 4503         (f) Notwithstanding any other provision of law, funds
 4504  allocated under this subsection shall not be included in the
 4505  calculated amount for any scholarship awarded under chapter
 4506  1002.
 4507         Section 29. Section 1011.687, Florida Statutes, is created
 4508  to read:
 4509         1011.687 K-12 Education Scholarship Program Allocation.—The
 4510  K-12 Education Scholarship Program Allocation is established to
 4511  provide funds to implement the McKay-Gardiner Scholarship
 4512  Program provided in s. 1002.381 and the Family Empowerment
 4513  Scholarship Program provided in 1002.394. A student FTE
 4514  scholarship amount shall be calculated as provided in ss.
 4515  1002.381(15) and 1002.394(12)(b), based on funds calculated for
 4516  a similarly situated public school student full-time equivalent
 4517  in the Florida Education Finance Program. For purposes of this
 4518  allocation, one student FTE is equivalent to four quarterly
 4519  scholarship payments. A student who receives funding for the
 4520  program for less than four quarters shall be a fraction of an
 4521  FTE. Funds for the scholarship allocation shall be provided for
 4522  student FTE in each county in the amount prescribed in the
 4523  General Appropriations Act. The calculated student scholarship
 4524  amounts provided may not be revised during the fiscal year.
 4525         Section 30. (1) Any unused tax credit that was approved
 4526  under former s. 212.099, Florida Statutes 2020, before July 1,
 4527  2021, continues in effect, subject to the carryforward,
 4528  conveyance, assignment, transfer, and rescindment provisions of
 4529  former s. 212.099(5), Florida Statutes 2020.
 4530         (2) Any unused tax credit under former s. 1002.395, Florida
 4531  Statutes 2020, which was approved before July 1, 2021, continues
 4532  in effect, subject to the carryforward, conveyance, assignment,
 4533  transfer, rescindment, estimated corporate income tax payment,
 4534  and insurance premium tax installment payment provisions of
 4535  former s. 1002.395(5), Florida Statutes 2020.
 4536         (3) This section is repealed June 30, 2031.
 4537         Section 31. Former s. 1002.395(5)(g), Florida Statutes
 4538  2020, relating to deduction of contributions for purposes of
 4539  calculating underpayments, applies to a taxpayer who, before
 4540  July 1, 2021, was approved to receive a credit allocation by the
 4541  department and reduced or made no estimated corporate income tax
 4542  payments or insurance premium or assessment installment payments
 4543  in reliance of former s. 1002.395(5)(g), Florida Statutes 2020,
 4544  except that the taxpayer shall remit amounts intended for
 4545  contributions to an eligible nonprofit scholarship organization
 4546  to the department The department shall deposit such amounts into
 4547  the designated student fund in accordance with s. 1002.395(4),
 4548  Florida Statutes. This section expires June 30, 2024.
 4549         Section 32. This act shall take effect July 1, 2021.