Florida Senate - 2021                               CS for SB 48
       
       
        
       By the Committee on Education; and Senators Diaz, Brandes,
       Garcia, Baxley, and Perry
       
       
       
       
       581-01976-21                                            202148c1
    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         conforming provisions to changes made by the act;
   15         requiring a dealer to identify on the dealer’s return
   16         the amount of an eligible contribution; requiring the
   17         Department of Revenue to ensure that certain receipts
   18         are deposited in a specified fund; amending ss.
   19         212.1831 and 212.1832, F.S.; conforming provisions to
   20         changes made by the act; amending s. 213.053, F.S.;
   21         deleting authorization for the Department of Revenue
   22         to provide specified information to certain entities;
   23         deleting definitions; amending ss. 220.1105, 220.13,
   24         220.186, 220.1875, 561.1211, 624.51055, and 1002.20,
   25         F.S.; conforming provisions to changes made by the
   26         act; amending s. 1002.23, F.S.; correcting a reference
   27         to the Florida Virtual School; conforming a provision
   28         to changes made by the act; amending s. 1002.31, F.S.;
   29         adding certain students to those whom district school
   30         boards must provide preferential treatment in the
   31         controlled open enrollment process; creating s.
   32         1002.381, F.S.; establishing the McKay-Gardiner
   33         Scholarship Program; providing the purpose of the
   34         program; requiring certain written materials to
   35         describe a scholarship under the program as a “McKay
   36         Gardiner Scholarship”; defining terms; specifying
   37         eligibility requirements; prohibiting a student from
   38         participating in the program under certain
   39         circumstances; providing criteria for authorized uses
   40         of program funds; prohibiting providers of any
   41         services receiving payments pursuant to the program
   42         from sharing, refunding, or rebating any program funds
   43         with parents of program students; prohibiting
   44         specified persons from billing certain entities for
   45         specified services; providing that program funding for
   46         specified children constitutes their full funding
   47         under part V of ch. 1002, F.S.; providing the terms of
   48         a program scholarship; requiring the Commissioner of
   49         Education to close scholarship accounts and for
   50         specified funds to revert to the state under specified
   51         circumstances; requiring the commissioner to notify
   52         parents and organizations when a program scholarship
   53         account is closed and funds revert to the state;
   54         providing school district obligations relating to
   55         notifying parents, individualized education plans, and
   56         matrices of service; specifying obligations for
   57         eligible private schools; authorizing the commissioner
   58         to determine that a private school is ineligible to
   59         participate in the scholarship program if the private
   60         school fails to meet certain requirements; providing
   61         Department of Education obligations relating to the
   62         program; providing commissioner authority and
   63         obligations relating to suspending or revoking program
   64         participation; providing parent and student
   65         responsibilities for program participation; providing
   66         that a participant who fails to comply with program
   67         responsibilities forfeits a program scholarship;
   68         requiring charitable organizations seeking to
   69         participate in the program to submit an application
   70         for initial approval or renewal to the Office of
   71         Independent Education and Parental Choice by a
   72         specified date; providing requirements for such
   73         applications; requiring the office to review
   74         applications in consultation with the Department of
   75         Revenue and the Chief Financial Officer; requiring the
   76         commissioner to recommend approval or disapproval of
   77         applications to the State Board of Education within a
   78         certain timeframe; requiring the state board to
   79         consider applications and recommendations at its next
   80         scheduled meeting; requiring the state board to
   81         provide a written explanation to organizations whose
   82         applications are disapproved; requiring the state
   83         board to provide written notice to affected students
   84         and parents if the state board disapproves an
   85         organization’s renewal application; allowing students
   86         affected by such disapproval to remain eligible for
   87         the program for a specified timeframe; requiring such
   88         students to apply to and be accepted by a different
   89         organization for upcoming school years; requiring
   90         remaining funds held by a disapproved organization to
   91         be transferred to other eligible organizations;
   92         requiring the state board to adopt specified rules;
   93         exempting specified entities from the initial or
   94         renewal application process; providing nonprofit
   95         scholarship-funding organization obligations relating
   96         to establishing program scholarships; providing
   97         eligibility for transition-to-work programs; providing
   98         requirements for such programs and for private schools
   99         and job coaches participating in such programs;
  100         providing student obligations relating to
  101         participating in such programs; providing business
  102         obligations relating to participating in such
  103         programs; specifying requirements for scholarship
  104         funding and payment; specifying the initial maximum
  105         number of eligible FTE; providing for the annual
  106         increase of the maximum number of eligible FTE;
  107         requiring nonprofit scholarship-funding organizations
  108         to report specified information to the department at
  109         the time of each Florida Education Finance Program
  110         student membership survey; requiring the department to
  111         transfer certain funds to organizations in a specified
  112         manner; clarifying that accrued interest in student
  113         accounts is in addition to, and not part of, awarded
  114         funds; authorizing organizations to develop systems
  115         for payment of benefits by funds transfer; prohibiting
  116         organizations that develop such systems from reducing
  117         scholarship awards through certain fees; clarifying
  118         that scholarship funds do not constitute taxable
  119         income to the qualified student or to his or her
  120         parent; requiring the Auditor General to conduct
  121         certain audits at least once every 3 years; providing
  122         criteria for such audits; requiring the Auditor
  123         General to provide the commissioner with a copy of
  124         such audits within a specified timeframe; requiring
  125         the Auditor General to notify the department of any
  126         organization that fails to comply with a request for
  127         information; requiring certain departments and
  128         agencies to work with organizations to provide access
  129         to specified lists; providing that the state is not
  130         liable for the award or use of program funds;
  131         clarifying that the act does not expand regulatory
  132         authority of the state over specified entities;
  133         requiring the State Board of Education to adopt rules;
  134         repealing ss. 1002.385 and 1002.39, F.S., relating to
  135         the Gardiner Scholarship and the John M. McKay
  136         Scholarships for Students with Disabilities Program,
  137         respectively; amending s. 1002.394, F.S.; providing
  138         and revising definitions; conforming provisions to
  139         changes made by the act; specifying and revising
  140         eligibility requirements; deleting a provision
  141         requiring the department to notify the school district
  142         of the parent’s intent upon receipt of the parent’s
  143         request; revising the priority order for awarding the
  144         scholarships to eligible students; providing and
  145         revising terms for state Family Empowerment
  146         Scholarship payments to organizations; providing
  147         circumstances under which a student’s account must be
  148         closed and remaining funds reverted to the state;
  149         requiring the commissioner to notify parents when an
  150         account is closed and funds revert to the state;
  151         requiring funds to be used to meet individual
  152         educational needs of eligible students; specifying the
  153         purposes for which such funds may be used; prohibiting
  154         a provider receiving such funds from sharing,
  155         refunding, or rebating the funds with a participating
  156         parent or student; providing eligibility for a
  157         scholarship to transport a student; requiring a
  158         principal or his or her designee to provide copies of
  159         certain reports to a parent; requiring a principal or
  160         his or her designee to investigate incidents in a
  161         specified manner; providing and revising department
  162         obligations relating to participating students;
  163         requiring the department to issue a project grant
  164         award to a state university, to which certain private
  165         schools must report student scores on certain tests;
  166         requiring the department to verify eligible
  167         expenditures before distributing funds; providing and
  168         revising obligations for eligible private schools;
  169         providing and revising parent and student obligations
  170         for initial and continued participation in the
  171         program; providing and revising nonprofit scholarship
  172         funding organization obligations relating to
  173         participating in the program; expanding eligibility to
  174         specified students who received certain scholarships
  175         in a specified school year; clarifying that such
  176         scholarships do not count toward the maximum number of
  177         eligible students; requiring nonprofit scholarship
  178         funding organizations to report specified information
  179         to the department at the time of each Florida
  180         Education Finance Program student membership survey;
  181         providing the manner in which funds will be allocated
  182         by certain dates; requiring the department to release
  183         scholarship funds once an application has been
  184         approved for the program; clarifying that accrued
  185         interest is in addition to, and not part of, awarded
  186         funds; authorizing organizations to develop a system
  187         for payment of benefits by funds transfer; prohibiting
  188         scholarship awards from being reduced by certain fees;
  189         clarifying that scholarship funds do not constitute
  190         taxable income to the qualified student or to his or
  191         her parent; requiring the Auditor General to conduct
  192         certain audits at least once every 3 years; providing
  193         criteria for such audits; requiring the Auditor
  194         General to provide the commissioner with a copy of
  195         such audits within a specified timeframe; requiring
  196         the Auditor General to notify the department of any
  197         organization that fails to comply with a request for
  198         information; providing application requirements for
  199         charitable organizations seeking to participate in the
  200         Family Empowerment Scholarship program; requiring the
  201         office to review applications in consultation with the
  202         Department of Revenue and the Chief Financial Officer;
  203         requiring the commissioner to recommend approval or
  204         disapproval of applications to the State Board of
  205         Education within a certain timeframe; requiring the
  206         state board to consider applications and
  207         recommendations at its next scheduled meeting;
  208         requiring the state board to provide a written
  209         explanation to organizations whose applications are
  210         disapproved; requiring the state board to provide
  211         written notice to affected students and parents if the
  212         state board disapproves an organization’s renewal
  213         application; allowing students affected by such
  214         disapproval to remain eligible for the program for a
  215         specified timeframe; requiring such students to apply
  216         to and be accepted by a different organization for
  217         upcoming school years; requiring remaining funds held
  218         by a disapproved organization to be transferred to the
  219         student’s account established at the eligible
  220         organization accepting the student; providing that an
  221         organization is a renewing organization if it
  222         maintains continuous approval and participation in the
  223         program; requiring the state board to adopt rules;
  224         exempting specified entities from the initial or
  225         renewal application process; deleting an obsolete
  226         implementation schedule; amending s. 1002.395, F.S.;
  227         renaming the Florida Tax Credit Scholarship Program
  228         the Florida K-12 Education Funding Tax Credit Program;
  229         revising the purpose of the program; revising and
  230         deleting terms; deleting provisions made obsolete by
  231         the act; authorizing a taxpayer to elect to make
  232         eligible contributions to the Department of Revenue or
  233         Division of Alcoholic Beverages and Tobacco;
  234         specifying the manner in which a taxpayer may elect to
  235         make eligible contributions; requiring all eligible
  236         contributions received by the department and the
  237         division to be deposited into a specified fund;
  238         amending s. 1002.40, F.S.; renaming the Hope
  239         Scholarship Program the K-12 Education Funding Tax
  240         Credit Program; deleting provisions made obsolete by
  241         the act; revising and deleting terms; authorizing
  242         eligible contributions to be used for K-12 education
  243         funding; requiring an eligible contribution to be
  244         accompanied by a contribution election form provided
  245         by the Department of Revenue; requiring the Department
  246         of Revenue to develop the form in collaboration with
  247         the Department of Education; providing the information
  248         to be included in the form; requiring the Department
  249         of Revenue to deposit all receipts of eligible
  250         contributions into a specified fund; requiring the
  251         Department of Revenue to adopt rules; amending s.
  252         1002.411, F.S.; conforming a provision to changes made
  253         by the act; amending s. 1002.421, F.S.; providing that
  254         private virtual schools meet the requirement to
  255         maintain a physical location in this state if such
  256         virtual schools maintain at least one administrative
  257         office in a specified manner; requiring certain
  258         private schools to provide reports from a specified
  259         public accountant; providing requirements for such
  260         reports; amending s. 1009.971, F.S.; conforming
  261         provisions to changes made by the act; amending ss.
  262         1009.98, 1009.981, and 1011.61, F.S.; conforming
  263         provisions to changes made by the act; amending s.
  264         1011.62, F.S.; deleting a provision requiring that
  265         certain funds not be included in the calculated amount
  266         for certain scholarship awards; providing an effective
  267         date.
  268          
  269  Be It Enacted by the Legislature of the State of Florida:
  270  
  271         Section 1. Paragraph (l) of subsection (2) and subsection
  272  (8) of section 11.45, Florida Statutes, are amended to read:
  273         11.45 Definitions; duties; authorities; reports; rules.—
  274         (2) DUTIES.—The Auditor General shall:
  275         (l) At least every 3 years, Annually conduct operational
  276  audits of the accounts and records of eligible nonprofit
  277  scholarship-funding organizations receiving eligible
  278  contributions under ss. 1002.381 and 1002.394 s. 1002.395,
  279  including any contracts for services with related entities, to
  280  determine compliance with the provisions of that section. Such
  281  audits must shall include, but not be limited to, a
  282  determination of the eligible nonprofit scholarship-funding
  283  organization’s compliance with ss. 1002.381(13)(f) and
  284  1002.394(11)(k) s. 1002.395(6)(j). The Auditor General shall
  285  provide its report on the results of the audits to the Governor,
  286  the President of the Senate, the Speaker of the House of
  287  Representatives, the Chief Financial Officer, and the
  288  Legislative Auditing Committee, within 30 days of completion of
  289  the audit.
  290  
  291  The Auditor General shall perform his or her duties
  292  independently but under the general policies established by the
  293  Legislative Auditing Committee. This subsection does not limit
  294  the Auditor General’s discretionary authority to conduct other
  295  audits or engagements of governmental entities as authorized in
  296  subsection (3).
  297         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
  298  consultation with the Board of Accountancy, shall adopt rules
  299  for the form and conduct of all financial audits performed by
  300  independent certified public accountants pursuant to ss.
  301  215.981, 218.39, 1001.453, 1002.381, 1002.394 1002.395, 1004.28,
  302  and 1004.70. The rules for audits of local governmental
  303  entities, charter schools, charter technical career centers, and
  304  district school boards must include, but are not limited to,
  305  requirements for the reporting of information necessary to carry
  306  out the purposes of the Local Governmental Entity, Charter
  307  School, Charter Technical Career Center, and District School
  308  Board Financial Emergencies Act as stated in s. 218.501.
  309         Section 2. Section 211.0251, Florida Statutes, is amended
  310  to read:
  311         211.0251 Credit for contributions to K-12 education funding
  312  eligible nonprofit scholarship-funding organizations.—There is
  313  allowed a credit of 100 percent of an eligible contribution
  314  directed made to K-12 education funding an eligible nonprofit
  315  scholarship-funding organization under s. 1002.395 for against
  316  any tax due under s. 211.02 or s. 211.025. However, a credit
  317  allowed under this section may not exceed 50 percent of the tax
  318  due on the return the credit is taken. For purposes of the
  319  distributions of tax revenue under s. 211.06, the department
  320  shall disregard any tax credits allowed under this section to
  321  ensure that any reduction in tax revenue received which is
  322  attributable to the tax credits results only in a reduction in
  323  distributions to the General Revenue Fund. The provisions of s.
  324  1002.395 apply to the credit authorized by this section.
  325         Section 3. Section 212.099, Florida Statutes, is amended to
  326  read:
  327         212.099 Credit for contributions to K-12 education funding
  328  eligible nonprofit scholarship-funding organizations.—
  329         (1) As used in this section, the term:
  330         (a) “Eligible business” means a tenant or person actually
  331  occupying, using, or entitled to the use of any property from
  332  which the rental or license fee is subject to taxation under s.
  333  212.031.
  334         (b) “Eligible contribution” or “contribution” means the
  335  amount of tax, or portion thereof, paid by a monetary
  336  contribution from an eligible business to a collecting dealer
  337  and designated for K-12 education funding by the eligible
  338  business an eligible nonprofit scholarship-funding organization
  339  to be used pursuant to s. 1002.395. The eligible business making
  340  the contribution may not designate a specific student as the
  341  beneficiary of the contribution.
  342         (c) “Eligible nonprofit scholarship-funding organization”
  343  or “organization” has the same meaning as provided in s.
  344  1002.395(2)(f).
  345         (2) An eligible business shall be granted a credit against
  346  the tax imposed under s. 212.031 and collected from the eligible
  347  business by a dealer. The credit shall be in an amount equal to
  348  100 percent of an eligible contribution made to an organization.
  349         (3) A dealer shall take a credit against the tax imposed
  350  under s. 212.031 in an amount equal to the credit taken by the
  351  eligible business under subsection (2).
  352         (4)(a) An eligible business must apply to the department
  353  for an allocation of tax credits under this section. The
  354  eligible business must specify in the application the state
  355  fiscal year during which the contribution will be made, the
  356  organization that will receive the contribution, the planned
  357  amount of the contribution, the address of the property from
  358  which the rental or license fee is subject to taxation under s.
  359  212.031, and the federal employer identification number of the
  360  dealer who collects the tax imposed under s. 212.031 from the
  361  eligible business and who will reduce collection of taxes from
  362  the eligible business pursuant to this section. The department
  363  shall approve allocations of tax credits on a first-come, first
  364  served basis and shall provide to the eligible business a
  365  separate approval or denial letter for each dealer for which the
  366  eligible business applied for an allocation of tax credits.
  367  Within 10 days after approving or denying an application, the
  368  department shall provide a copy of its approval or denial letter
  369  to the organization specified by the eligible business in the
  370  application. An approval letter must include the name and
  371  federal employer identification number of the dealer from whom a
  372  credit under this section can be taken and the amount of tax
  373  credits approved for use with that dealer.
  374         (b) Upon receipt of an eligible contribution, the
  375  organization shall provide the eligible business that made the
  376  contribution with a separate certificate of contribution for
  377  each dealer from whom a credit can be taken as approved under
  378  paragraph (a). A certificate of contribution must include the
  379  contributor’s name and, if available, federal employer
  380  identification number, the amount contributed, the date of
  381  contribution, the name of the organization, and the name and
  382  federal employer identification number of the dealer.
  383         (5) Each dealer that receives from an eligible business a
  384  copy of the department’s approval letter and a certificate of
  385  contribution, both of which identify the dealer as the dealer
  386  who collects the tax imposed under s. 212.031 from the eligible
  387  business and who will reduce collection of taxes from the
  388  eligible business pursuant to this section, shall identify on
  389  the dealer’s return the amount of the eligible contribution by
  390  reduce the tax collected from the eligible business, which
  391  amount under s. 212.031 by the total amount of contributions
  392  indicated in the certificate of contribution. The reduction may
  393  not exceed the amount of credit allocation approved by the
  394  department and may not exceed the amount of tax that would
  395  otherwise be collected from the eligible business by a dealer
  396  when a payment is made under the rental or license fee
  397  arrangement. However, payments by an eligible business to a
  398  dealer may not be reduced before October 1, 2018.
  399         (a) If the total amount of credits an eligible business may
  400  take cannot be fully used within any period that a payment is
  401  due under the rental or license fee arrangement because of an
  402  insufficient amount of tax that the dealer would collect from
  403  the eligible business during that period, the unused amount may
  404  be carried forward for a period not to exceed 10 years.
  405         (b) A tax credit may not be claimed on an amended return or
  406  through a refund.
  407         (c) A dealer that claims a tax credit must file returns and
  408  pay taxes by electronic means under s. 213.755.
  409         (d) An eligible business may not convey, assign, or
  410  transfer an approved tax credit or a carryforward tax credit to
  411  another entity unless all of the assets of the eligible business
  412  are conveyed, assigned, or transferred in the same transaction
  413  and the successor business continues the same lease with the
  414  dealer.
  415         (e) Within any state fiscal year, an eligible business may
  416  rescind all or part of a tax credit approved under this section.
  417  The amount rescinded shall become available for that state
  418  fiscal year to another eligible business as approved by the
  419  department if the business receives notice from the department
  420  that the rescindment has been accepted by the department. Any
  421  amount rescinded under this subsection shall become available to
  422  an eligible business on a first-come, first-served basis based
  423  on tax credit applications received after the date the
  424  rescindment is accepted by the department.
  425         (f) Within 10 days after the rescindment of a tax credit
  426  under paragraph (e) is accepted by the department, the
  427  department shall notify the eligible nonprofit scholarship
  428  funding organization specified by the eligible business. The
  429  department shall also include the eligible nonprofit
  430  scholarship-funding organization specified by the eligible
  431  business on all letters or correspondence of acknowledgment for
  432  tax credits under this section.
  433         (6) An organization shall report to the department, on or
  434  before the 20th day of each month, the total amount of
  435  contributions received pursuant to subsection (4) in the
  436  preceding calendar month on a form provided by the department.
  437  Such report shall include the amount of contributions received
  438  during that reporting period and the federal employer
  439  identification number of each dealer associated with the
  440  contribution.
  441         (7)(a) Eligible contributions may be used to fund the
  442  program established under s. 1002.395.
  443         (b) The organization shall separately account for each
  444  scholarship funded pursuant to this section.
  445         (c) The organization may, subject to the limitations of s.
  446  1002.395(6)(j)1., use eligible contributions received during the
  447  state fiscal year in which such contributions are collected for
  448  administrative expenses.
  449         (7)(8) The sum of tax credits that may be approved by the
  450  department in any state fiscal year is $57.5 million.
  451         (8)(9)The department shall ensure that receipts designated
  452  by a remitting dealer as eligible contributions under this
  453  section are deposited into a designated student fund. For
  454  purposes of the distributions of tax revenue under s. 212.20,
  455  the department shall disregard any tax credits allowed under
  456  this section to ensure that any reduction in tax revenue
  457  received that is attributable to the tax credits results only in
  458  a reduction in distributions to the General Revenue Fund.
  459         (9)(10) The department may adopt rules to administer this
  460  section.
  461         Section 4. Section 212.1831, Florida Statutes, is amended
  462  to read:
  463         212.1831 Credit for contributions to K-12 education funding
  464  eligible nonprofit scholarship-funding organizations.—There is
  465  allowed a credit of 100 percent of an eligible contribution made
  466  to an eligible nonprofit scholarship-funding organization under
  467  s. 1002.395 against any tax imposed by the state and due under
  468  this chapter from a direct pay permit holder as a result of the
  469  direct pay permit held pursuant to s. 212.183. For purposes of
  470  the dealer’s credit granted for keeping prescribed records,
  471  filing timely tax returns, and properly accounting and remitting
  472  taxes under s. 212.12, the amount of tax due used to calculate
  473  the credit shall include any eligible contribution made to an
  474  eligible nonprofit scholarship-funding organization from a
  475  direct pay permit holder. For purposes of the distributions of
  476  tax revenue under s. 212.20, the department shall disregard any
  477  tax credits allowed under this section to ensure that any
  478  reduction in tax revenue received that is attributable to the
  479  tax credits results only in a reduction in distributions to the
  480  General Revenue Fund. The provisions of s. 1002.395 apply to the
  481  credit authorized by this section.
  482         Section 5. Section 212.1832, Florida Statutes, is amended
  483  to read:
  484         212.1832 Credit for contributions to K-12 education funding
  485  eligible nonprofit scholarship-funding organizations.—
  486         (1) The purchaser of a motor vehicle shall be granted a
  487  credit of 100 percent of an eligible contribution made to an
  488  eligible nonprofit scholarship-funding organization under s.
  489  1002.40 against any tax imposed by the state under this chapter
  490  and collected from the purchaser by a dealer, designated agent,
  491  or private tag agent as a result of the purchase or acquisition
  492  of a motor vehicle, except that a credit may not exceed the tax
  493  that would otherwise be collected from the purchaser by a
  494  dealer, designated agent, or private tag agent. For purposes of
  495  this subsection, the term “purchase” does not include the lease
  496  or rental of a motor vehicle.
  497         (2) A dealer shall take a credit against any tax imposed by
  498  the state under this chapter on the purchase of a motor vehicle
  499  in an amount equal to the credit granted to the purchaser under
  500  subsection (1).
  501         (3) For purposes of the distributions of tax revenue under
  502  s. 212.20, the department shall disregard any tax credits
  503  allowed under this section to ensure that any reduction in tax
  504  revenue received that is attributable to the tax credits results
  505  only in a reduction in distributions to the General Revenue
  506  Fund. The provisions of s. 1002.40 apply to the credit
  507  authorized by this section.
  508         Section 6. Paragraph (s) of subsection (8) and subsections
  509  (21) and (22) of section 213.053, Florida Statutes, are amended
  510  to read:
  511         213.053 Confidentiality and information sharing.—
  512         (8) Notwithstanding any other provision of this section,
  513  the department may provide:
  514         (s) Information relative to ss. 211.0251, 212.1831,
  515  220.1875, 561.1211, 624.51055, and 1002.395 to the Department of
  516  Education and the Division of Alcoholic Beverages and Tobacco in
  517  the conduct of official business.
  518  
  519  Disclosure of information under this subsection shall be
  520  pursuant to a written agreement between the executive director
  521  and the agency. Such agencies, governmental or nongovernmental,
  522  shall be bound by the same requirements of confidentiality as
  523  the Department of Revenue. Breach of confidentiality is a
  524  misdemeanor of the first degree, punishable as provided by s.
  525  775.082 or s. 775.083.
  526         (21)(a) For purposes of this subsection, the term:
  527         1. “Eligible nonprofit scholarship-funding organization”
  528  means an eligible nonprofit scholarship-funding organization as
  529  defined in s. 1002.395(2) that meets the criteria in s.
  530  1002.395(6) to use up to 3 percent of eligible contributions for
  531  administrative expenses.
  532         2. “Taxpayer” has the same meaning as in s. 220.03, unless
  533  disclosure of the taxpayer’s name and address would violate any
  534  term of an information-sharing agreement between the department
  535  and an agency of the Federal Government.
  536         (b) The department, upon request, shall provide to an
  537  eligible nonprofit scholarship-funding organization that
  538  provides scholarships under s. 1002.395 a list of the 200
  539  taxpayers with the greatest total corporate income or franchise
  540  tax due as reported on the taxpayer’s return filed pursuant to
  541  s. 220.22 during the previous calendar year. The list must be in
  542  alphabetical order based on the taxpayer’s name and shall
  543  contain the taxpayer’s address. The list may not disclose the
  544  amount of tax owed by any taxpayer.
  545         (c) An eligible nonprofit scholarship-funding organization
  546  may request the list once each calendar year. The department
  547  shall provide the list within 45 days after the request is made.
  548         (d) Any taxpayer information contained in the list may be
  549  used by the eligible nonprofit scholarship-funding organization
  550  only to notify the taxpayer of the opportunity to make an
  551  eligible contribution to the Florida Tax Credit Scholarship
  552  Program under s. 1002.395. Any information furnished to an
  553  eligible nonprofit scholarship-funding organization under this
  554  subsection may not be further disclosed by the organization
  555  except as provided in this paragraph.
  556         (e) An eligible nonprofit scholarship-funding organization,
  557  its officers, and employees are subject to the same requirements
  558  of confidentiality and the same penalties for violating
  559  confidentiality as the department and its employees. Breach of
  560  confidentiality is a misdemeanor of the first degree, punishable
  561  as provided by s. 775.082 or s. 775.083.
  562         (22)(a) The department may provide to an eligible nonprofit
  563  scholarship-funding organization, as defined in s. 1002.40, a
  564  dealer’s name, address, federal employer identification number,
  565  and information related to differences between credits taken by
  566  the dealer pursuant to s. 212.1832(2) and amounts remitted to
  567  the eligible nonprofit scholarship-funding organization under s.
  568  1002.40(13)(b)3. The eligible nonprofit scholarship-funding
  569  organization may use the information for purposes of recovering
  570  eligible contributions designated for that organization that
  571  were collected by the dealer but never remitted to the
  572  organization.
  573         (b) Nothing in this subsection authorizes the disclosure of
  574  information if such disclosure is prohibited by federal law. An
  575  eligible nonprofit scholarship-funding organization is bound by
  576  the same requirements of confidentiality and the same penalties
  577  for a violation of the requirements as the department.
  578         Section 7. Paragraph (a) of subsection (4) of section
  579  220.1105, Florida Statutes, is amended to read:
  580         220.1105 Tax imposed; automatic refunds and downward
  581  adjustments to tax rates.—
  582         (4) For fiscal years 2018-2019 through 2020-2021, any
  583  amount by which net collections for a fiscal year exceed
  584  adjusted forecasted collections for that fiscal year shall only
  585  be used to provide refunds to corporate income tax payers as
  586  follows:
  587         (a) For purposes of this subsection, the term:
  588         1. “Eligible taxpayer” means:
  589         a. For fiscal year 2018-2019, a taxpayer whose taxable year
  590  begins between April 1, 2017, and March 31, 2018, and whose
  591  final tax liability for such taxable year is greater than zero;
  592         b. For fiscal year 2019-2020, a taxpayer whose taxable year
  593  begins between April 1, 2018, and March 31, 2019, and whose
  594  final tax liability for such taxable year is greater than zero;
  595  or
  596         c. For fiscal year 2020-2021, a taxpayer whose taxable year
  597  begins between April 1, 2019, and March 31, 2020, and whose
  598  final tax liability for such taxable year is greater than zero.
  599         2. “Excess collections” for a fiscal year means the amount
  600  by which net collections for a fiscal year exceeds adjusted
  601  forecasted collections for that fiscal year.
  602         3. “Final tax liability” means the taxpayer’s amount of tax
  603  due under this chapter for a taxable year, reported on a return
  604  filed with the department, plus the amount of any credit taken
  605  on such return under s. 220.1875.
  606         4. “Total eligible tax liability” for a fiscal year means
  607  the sum of final tax liabilities of all eligible taxpayers for a
  608  fiscal year as such liabilities are shown on the latest return
  609  filed with the department as of February 1 immediately following
  610  that fiscal year.
  611         5. “Taxpayer refund share” for a fiscal year means an
  612  eligible taxpayer’s final tax liability as a percentage of the
  613  total eligible tax liability for that fiscal year.
  614         6. “Taxpayer refund” for a fiscal year means the taxpayer
  615  refund share for a fiscal year multiplied by the excess
  616  collections for a fiscal year.
  617         Section 8. Paragraph (a) of subsection (1) of section
  618  220.13, Florida Statutes, is amended to read:
  619         220.13 “Adjusted federal income” defined.—
  620         (1) The term “adjusted federal income” means an amount
  621  equal to the taxpayer’s taxable income as defined in subsection
  622  (2), or such taxable income of more than one taxpayer as
  623  provided in s. 220.131, for the taxable year, adjusted as
  624  follows:
  625         (a) Additions.—There shall be added to such taxable income:
  626         1.a. The amount of any tax upon or measured by income,
  627  excluding taxes based on gross receipts or revenues, paid or
  628  accrued as a liability to the District of Columbia or any state
  629  of the United States which is deductible from gross income in
  630  the computation of taxable income for the taxable year.
  631         b. Notwithstanding sub-subparagraph a., if a credit taken
  632  under s. 220.1875 is added to taxable income in a previous
  633  taxable year under subparagraph 11. and is taken as a deduction
  634  for federal tax purposes in the current taxable year, the amount
  635  of the deduction allowed shall not be added to taxable income in
  636  the current year. The exception in this sub-subparagraph is
  637  intended to ensure that the credit under s. 220.1875 is added in
  638  the applicable taxable year and does not result in a duplicate
  639  addition in a subsequent year.
  640         2. The amount of interest which is excluded from taxable
  641  income under s. 103(a) of the Internal Revenue Code or any other
  642  federal law, less the associated expenses disallowed in the
  643  computation of taxable income under s. 265 of the Internal
  644  Revenue Code or any other law, excluding 60 percent of any
  645  amounts included in alternative minimum taxable income, as
  646  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  647  taxpayer pays tax under s. 220.11(3).
  648         3. In the case of a regulated investment company or real
  649  estate investment trust, an amount equal to the excess of the
  650  net long-term capital gain for the taxable year over the amount
  651  of the capital gain dividends attributable to the taxable year.
  652         4. That portion of the wages or salaries paid or incurred
  653  for the taxable year which is equal to the amount of the credit
  654  allowable for the taxable year under s. 220.181. This
  655  subparagraph shall expire on the date specified in s. 290.016
  656  for the expiration of the Florida Enterprise Zone Act.
  657         5. That portion of the ad valorem school taxes paid or
  658  incurred for the taxable year which is equal to the amount of
  659  the credit allowable for the taxable year under s. 220.182. This
  660  subparagraph shall expire on the date specified in s. 290.016
  661  for the expiration of the Florida Enterprise Zone Act.
  662         6. The amount taken as a credit under s. 220.195 which is
  663  deductible from gross income in the computation of taxable
  664  income for the taxable year.
  665         7. That portion of assessments to fund a guaranty
  666  association incurred for the taxable year which is equal to the
  667  amount of the credit allowable for the taxable year.
  668         8. In the case of a nonprofit corporation which holds a
  669  pari-mutuel permit and which is exempt from federal income tax
  670  as a farmers’ cooperative, an amount equal to the excess of the
  671  gross income attributable to the pari-mutuel operations over the
  672  attributable expenses for the taxable year.
  673         9. The amount taken as a credit for the taxable year under
  674  s. 220.1895.
  675         10. Up to nine percent of the eligible basis of any
  676  designated project which is equal to the credit allowable for
  677  the taxable year under s. 220.185.
  678         11. The amount taken as a credit for the taxable year under
  679  s. 220.1875. The addition in this subparagraph is intended to
  680  ensure that the same amount is not allowed for the tax purposes
  681  of this state as both a deduction from income and a credit
  682  against the tax. This addition is not intended to result in
  683  adding the same expense back to income more than once.
  684         12. The amount taken as a credit for the taxable year under
  685  s. 220.193.
  686         12.13. Any portion of a qualified investment, as defined in
  687  s. 288.9913, which is claimed as a deduction by the taxpayer and
  688  taken as a credit against income tax pursuant to s. 288.9916.
  689         13.14. The costs to acquire a tax credit pursuant to s.
  690  288.1254(5) that are deducted from or otherwise reduce federal
  691  taxable income for the taxable year.
  692         14.15. The amount taken as a credit for the taxable year
  693  pursuant to s. 220.194.
  694         15.16. The amount taken as a credit for the taxable year
  695  under s. 220.196. The addition in this subparagraph is intended
  696  to ensure that the same amount is not allowed for the tax
  697  purposes of this state as both a deduction from income and a
  698  credit against the tax. The addition is not intended to result
  699  in adding the same expense back to income more than once.
  700         Section 9. Subsection (2) of section 220.186, Florida
  701  Statutes, is amended to read:
  702         220.186 Credit for Florida alternative minimum tax.—
  703         (2) The credit pursuant to this section shall be the amount
  704  of the excess, if any, of the tax paid based upon taxable income
  705  determined pursuant to s. 220.13(2)(k) over the amount of tax
  706  which would have been due based upon taxable income without
  707  application of s. 220.13(2)(k), before application of this
  708  credit without application of any credit under s. 220.1875.
  709         Section 10. Section 220.1875, Florida Statutes, is amended
  710  to read:
  711         220.1875 Credit for contributions to K-12 education funding
  712  eligible nonprofit scholarship-funding organizations.—
  713         (1) There is allowed a credit of 100 percent of an eligible
  714  contribution made to an eligible nonprofit scholarship-funding
  715  organization under s. 1002.395 against any tax due for a taxable
  716  year under this chapter after the application of any other
  717  allowable credits by the taxpayer. An eligible contribution must
  718  be made when the taxpayer makes an estimated payment to an
  719  eligible nonprofit scholarship-funding organization on or before
  720  the date the taxpayer is required to file a return pursuant to
  721  s. 220.222. The credit granted by this section shall be reduced
  722  by the difference between the amount of federal corporate income
  723  tax taking into account the credit granted by this section and
  724  the amount of federal corporate income tax without application
  725  of the credit granted by this section.
  726         (2) A taxpayer who files a Florida consolidated return as a
  727  member of an affiliated group pursuant to s. 220.131(1) may be
  728  allowed the credit on a consolidated return basis; however, the
  729  total credit taken by the affiliated group is subject to the
  730  limitation established under subsection (1).
  731         (3) The provisions of s. 1002.395 apply to the credit
  732  authorized by this section.
  733         (4) If a taxpayer applies and is approved for a credit
  734  under s. 1002.395 after timely requesting an extension to file
  735  under s. 220.222(2):
  736         (a) The credit does not reduce the amount of tax due for
  737  purposes of the department’s determination as to whether the
  738  taxpayer was in compliance with the requirement to pay tentative
  739  taxes under ss. 220.222 and 220.32.
  740         (b) The taxpayer’s noncompliance with the requirement to
  741  pay tentative taxes shall result in the revocation and
  742  rescindment of any such credit.
  743         (c) The taxpayer shall be assessed for any taxes,
  744  penalties, or interest due from the taxpayer’s noncompliance
  745  with the requirement to pay tentative taxes.
  746         Section 11. Section 561.1211, Florida Statutes, is amended
  747  to read:
  748         561.1211 Credit for contributions to K-12 education funding
  749  eligible nonprofit scholarship-funding organizations.—There is
  750  allowed a credit of 100 percent of an eligible contribution made
  751  to an eligible nonprofit scholarship-funding organization under
  752  s. 1002.395 against any tax due under s. 563.05, s. 564.06, or
  753  s. 565.12, except excise taxes imposed on wine produced by
  754  manufacturers in this state from products grown in this state.
  755  However, a credit allowed under this section may not exceed 90
  756  percent of the tax due on the return the credit is taken. For
  757  purposes of the distributions of tax revenue under ss. 561.121
  758  and 564.06(10), the division shall disregard any tax credits
  759  allowed under this section to ensure that any reduction in tax
  760  revenue received that is attributable to the tax credits results
  761  only in a reduction in distributions to the General Revenue
  762  Fund. The provisions of s. 1002.395 apply to the credit
  763  authorized by this section.
  764         Section 12. Section 624.51055, Florida Statutes, is amended
  765  to read:
  766         624.51055 Credit for contributions to K-12 education
  767  funding eligible nonprofit scholarship-funding organizations.—
  768         (1) There is allowed a credit of 100 percent of an eligible
  769  contribution made to an eligible nonprofit scholarship-funding
  770  organization under s. 1002.395 against any tax due for a taxable
  771  year under s. 624.509(1) after deducting from such tax
  772  deductions for assessments made pursuant to s. 440.51; credits
  773  for taxes paid under ss. 175.101 and 185.08; credits for income
  774  taxes paid under chapter 220; and the credit allowed under s.
  775  624.509(5), as such credit is limited by s. 624.509(6). An
  776  eligible contribution must be made to an eligible nonprofit
  777  scholarship-funding organization on or before the date the
  778  taxpayer is required to file a return pursuant to ss. 624.509
  779  and 624.5092. An insurer claiming a credit against premium tax
  780  liability under this section shall not be required to pay any
  781  additional retaliatory tax levied pursuant to s. 624.5091 as a
  782  result of claiming such credit. Section 624.5091 does not limit
  783  such credit in any manner.
  784         (2) The provisions of s. 1002.395 apply to the credit
  785  authorized by this section.
  786         Section 13. Paragraph (a) of subsection (6) of section
  787  1002.20, Florida Statutes, is amended to read:
  788         1002.20 K-12 student and parent rights.—Parents of public
  789  school students must receive accurate and timely information
  790  regarding their child’s academic progress and must be informed
  791  of ways they can help their child to succeed in school. K-12
  792  students and their parents are afforded numerous statutory
  793  rights including, but not limited to, the following:
  794         (6) EDUCATIONAL CHOICE.—
  795         (a) Public educational school choices.—Parents of public
  796  school students may seek any public educational school choice
  797  options that are applicable and available to students throughout
  798  the state. These options may include controlled open enrollment,
  799  single-gender programs, lab schools, virtual instruction
  800  programs, charter schools, charter technical career centers,
  801  magnet schools, alternative schools, special programs, auditory
  802  oral education programs, advanced placement, dual enrollment,
  803  International Baccalaureate, International General Certificate
  804  of Secondary Education (pre-AICE), CAPE digital tools, CAPE
  805  industry certifications, collegiate high school programs,
  806  Advanced International Certificate of Education, early
  807  admissions, credit by examination or demonstration of
  808  competency, the New World School of the Arts, the Florida School
  809  for the Deaf and the Blind, and the Florida Virtual School.
  810  These options may also include the public educational choice
  811  options of the Opportunity Scholarship Program and the Family
  812  Empowerment Scholarship McKay Scholarships for Students with
  813  Disabilities Program.
  814         Section 14. Subsection (2) of section 1002.23, Florida
  815  Statutes, is amended to read:
  816         1002.23 Family and School Partnership for Student
  817  Achievement Act.—
  818         (2) To facilitate meaningful parent and family involvement,
  819  the Department of Education shall develop guidelines for a
  820  parent guide to successful student achievement which describes
  821  what parents need to know about their child’s educational
  822  progress and how they can help their child to succeed in school.
  823  The guidelines shall include, but need not be limited to:
  824         (a) Parental information regarding:
  825         1. Requirements for their child to be promoted to the next
  826  grade, as provided for in s. 1008.25;
  827         2. Progress of their child toward achieving state and
  828  district expectations for academic proficiency;
  829         3. Assessment results, including report cards and progress
  830  reports;
  831         4. Qualifications of their child’s teachers; and
  832         5. School entry requirements, including required
  833  immunizations and the recommended immunization schedule;
  834         (b) Services available for parents and their children, such
  835  as family literacy services; mentoring, tutorial, and other
  836  academic reinforcement programs; college planning, academic
  837  advisement, and student counseling services; and after-school
  838  programs;
  839         (c) Opportunities for parental participation, such as
  840  parenting classes, adult education, school advisory councils,
  841  and school volunteer programs;
  842         (d) Opportunities for parents to learn about rigorous
  843  academic programs that may be available for their child, such as
  844  honors programs, dual enrollment, advanced placement,
  845  International Baccalaureate, International General Certificate
  846  of Secondary Education (pre-AICE), Advanced International
  847  Certificate of Education, Florida Virtual High School courses,
  848  and accelerated access to postsecondary education;
  849         (e) Educational choices, as provided for in s. 1002.20(6),
  850  and Florida tax credit scholarships, as provided for in s.
  851  1002.395;
  852         (f) Classroom and test accommodations available for
  853  students with disabilities;
  854         (g) School board rules, policies, and procedures for
  855  student promotion and retention, academic standards, student
  856  assessment, courses of study, instructional materials, and
  857  contact information for school and district offices; and
  858         (h) Resources for information on student health and other
  859  available resources for parents.
  860         Section 15. Paragraph (c) of subsection (2) of section
  861  1002.31, Florida Statutes, is amended to read:
  862         1002.31 Controlled open enrollment; Public school parental
  863  choice.—
  864         (2)
  865         (c) Each district school board must provide preferential
  866  treatment in its controlled open enrollment process to all of
  867  the following:
  868         1. Dependent children of active duty military personnel
  869  whose move resulted from military orders;.
  870         2. Children who have been relocated due to a foster care
  871  placement in a different school zone;.
  872         3. Children who move due to a court-ordered change in
  873  custody due to separation or divorce, or the serious illness or
  874  death of a custodial parent;.
  875         4. Students with an individual education plan or a 504
  876  accommodation plan under s. 504 of the Rehabilitation Act of
  877  1973 who are eligible for a McKay-Gardiner Scholarship pursuant
  878  to s. 1002.381; and
  879         5. Students residing in the school district.
  880         Section 16. Section 1002.381, Florida Statutes, is created
  881  to read:
  882         1002.381 The McKay-Gardiner Scholarship.—
  883         (1) ESTABLISHMENT OF PROGRAM.—Beginning with the 2021-2022
  884  school year, the McKay-Gardiner Scholarship Program is
  885  established to provide the option for a parent to better meet
  886  the individual educational needs of his or her eligible child.
  887  All written explanatory materials, including state websites,
  888  scholarship organization materials, letters to parents,
  889  scholarship agreements, and any other written information
  890  describing the program to the public, must refer to a
  891  scholarship granted under this program as a “McKay-Gardiner
  892  Scholarship.”
  893         (2) DEFINITIONS.—As used in this section, the term:
  894         (a) “Approved provider” means a provider approved by the
  895  Agency for Persons with Disabilities, a health care practitioner
  896  as defined in s. 456.001(4), or a provider approved by the
  897  department pursuant to s. 1002.66.
  898         (b) “Curriculum” has the same meaning as provided in s.
  899  1002.394(2)(b).
  900         (c) “Department” means the Department of Education.
  901         (d) “Disability” means:
  902         1. For a 3-year-old or 4-year-old child or for a student in
  903  kindergarten through grade 12, that the child has been diagnosed
  904  with any of the following: autism spectrum disorder; cerebral
  905  palsy; Down syndrome; an intellectual disability; Phelan
  906  McDermid syndrome; Prader-Willi syndrome; spina bifida; being a
  907  high-risk child, as defined in s. 393.063(23)(a); muscular
  908  dystrophy; Williams syndrome; rare diseases which affect patient
  909  populations of fewer than 200,000 individuals in the United
  910  States, as defined by the National Organization for Rare
  911  Disorders; anaphylaxis; deaf; visually impaired; traumatic
  912  brain-injured; hospital or homebound; or dual sensory impaired,
  913  as defined by rules of the State Board of Education and
  914  evidenced by reports from local school districts. As used in
  915  this subparagraph, the term “hospital or homebound” includes a
  916  student who has a medically diagnosed physical or psychiatric
  917  condition or illness, as defined by state board rule, and who is
  918  confined to the home or hospital for more than 6 months.
  919         2. For a student in kindergarten through grade 12, that the
  920  child has been diagnosed with any of the following: a speech
  921  impairment; a language impairment; a hearing impairment; an
  922  orthopedic impairment; an emotional or behavioral disability; a
  923  specific learning disability, including, but not limited to,
  924  dyslexia, dyscalculia, or developmental aphasia; or a
  925  developmental delay.
  926         (e) “Eligible nonprofit scholarship-funding organization”
  927  or “organization” means a state university; or an independent
  928  college or university that is eligible to participate in the
  929  William L. Boyd, IV, Effective Access to Student Education Grant
  930  Program located and chartered in this state which is not for
  931  profit and is accredited by the Commission on Colleges of the
  932  Southern Association of Colleges and Schools; or is a charitable
  933  organization that:
  934         1. Is exempt from federal income tax pursuant to s.
  935  501(c)(3) of the Internal Revenue Code;
  936         2. Is a Florida entity formed under chapter 605, chapter
  937  607, or chapter 617 and whose principal office is located in
  938  this state; and
  939         3. Complies with subsections (12) and (13).
  940         (f) “Eligible postsecondary educational institution” has
  941  the same meaning as s. 1002.394(2)(f).
  942         (g) “Eligible private school” has the same meaning as s.
  943  1002.394(2)(g).
  944         (h) “IEP” means an individual education plan, regardless of
  945  whether the plan has been reviewed or revised within the last 12
  946  months.
  947         (i) “Inactive” means that no eligible expenditures have
  948  been made from a student scholarship account funded pursuant to
  949  this section.
  950         (j)“Job coach” means an individual employed to help people
  951  with disabilities learn, accommodate, and perform their work
  952  duties.
  953         (k) “Parent” means a resident of this state who is a
  954  parent, as defined in s. 1000.21(5).
  955         (l) “Program” means the McKay-Gardiner Scholarship Program
  956  established in this section.
  957         (3) PROGRAM ELIGIBILITY.—A parent of a student with a
  958  disability may request and receive from the state a McKay
  959  Gardiner Scholarship for the purposes specified in subsection
  960  (5) if:
  961         (a) The student:
  962         1. Is a resident of this state;
  963         2. Is 3 or 4 years of age on or before September 1 of the
  964  year in which the student applies for program participation, or
  965  is eligible to enroll in kindergarten through grade 12 in a
  966  public school in this state; and
  967         3. Meets at least one of the following criteria:
  968         a. Has a diagnosis of a disability from a physician who is
  969  licensed under chapter 458 or chapter 459, a psychologist who is
  970  licensed under chapter 490, or a physician who holds an active
  971  license issued by another state or territory of the United
  972  States, the District of Columbia, or the Commonwealth of Puerto
  973  Rico;
  974         b. Has an individual education plan that has been written
  975  in accordance with the rules of the State Board of Education; or
  976         c.Has a 504 accommodation plan issued under s. 504 of the
  977  Rehabilitation Act of 1973.
  978  
  979  A student with a disability who meets the requirements of
  980  subparagraph 1. and sub-subparagraph 3.a., but who turns 3 years
  981  of age after September 1, may be determined to be eligible on or
  982  after his or her third birthday and may be awarded a scholarship
  983  if program funds are available.
  984         (b) The parent has applied to an eligible nonprofit
  985  scholarship-funding organization to participate in the program
  986  by a date as set by the organization for any vacant slots. The
  987  request must be communicated directly to the organization in a
  988  manner that creates a written or electronic record of the
  989  request and the date of receipt of the request.
  990         (4) PROGRAM PROHIBITIONS.—A student is not eligible for the
  991  program if he or she is:
  992         (a) Enrolled in a public school, including, but not limited
  993  to, the Florida School for the Deaf and the Blind, the College
  994  Preparatory Boarding Academy, a developmental research school
  995  authorized under s. 1002.32, or a charter school authorized
  996  under this chapter. For purposes of this paragraph, a 3- or 4
  997  year-old child who receives services funded through the Florida
  998  Education Finance Program is considered to be a student enrolled
  999  in a public school.
 1000         (b) Enrolled in a school operating for the purpose of
 1001  providing educational services to youth in Department of
 1002  Juvenile Justice commitment programs.
 1003         (c) Issued a temporary 504 accommodation plan under s. 504
 1004  of the Rehabilitation Act of 1973 which is valid for 6 months or
 1005  less.
 1006         (d) Receiving any other educational scholarship pursuant to
 1007  this chapter.
 1008         (e)Not having regular and direct contact with his or her
 1009  private school teachers pursuant to s. 1002.421(1)(i), unless he
 1010  or she is enrolled in the private school’s transition-to-work
 1011  program pursuant to subsection (14) or a home education program
 1012  pursuant to s. 1002.41.
 1013         (f)Participating in a virtual school, correspondence
 1014  school, or distance learning program that receives state funding
 1015  pursuant to the student’s participation.
 1016         (5) AUTHORIZED USES OF PROGRAM FUNDS.—Program funds must be
 1017  used to meet the individual educational needs of an eligible
 1018  student and may be spent only for the following purposes:
 1019         (a) Instructional materials, including digital devices,
 1020  digital periphery devices, and assistive technology devices that
 1021  allow a student to access instruction or instructional content;
 1022  training on the use of these devices and related maintenance
 1023  agreements; and Internet access to digital instructional
 1024  materials.
 1025         (b) Curriculum as defined in paragraph (2)(b).
 1026         (c) Specialized services by approved providers or by a
 1027  hospital in this state which are selected by the parent. These
 1028  specialized services may include, but are not limited to:
 1029         1. Applied behavior analysis services as provided in ss.
 1030  627.6686 and 641.31098.
 1031         2. Services provided by a speech-language pathologist as
 1032  defined in s. 468.1125(8).
 1033         3. Occupational therapy services as specified in s.
 1034  468.203.
 1035         4. Services provided by a physical therapist as defined in
 1036  s. 486.021(5).
 1037         5. Services provided by listening and spoken language
 1038  specialists and an appropriate acoustical environment for a
 1039  child who is deaf or hard of hearing and who has received an
 1040  implant or assistive hearing device.
 1041         (d) Tuition or fees associated with full-time or part-time
 1042  enrollment in any of the following: a home education program, an
 1043  eligible private school, or an eligible postsecondary
 1044  educational institution; a program offered by the postsecondary
 1045  institution, a private tutoring program authorized under s.
 1046  1002.43, a virtual program offered by a department-approved
 1047  private online provider that meets the provider qualifications
 1048  specified in s. 1002.45(2)(a), or a program offered by the
 1049  Florida Virtual School to a private paying student; or an
 1050  approved online course offered pursuant to s. 1003.499 or s.
 1051  1004.0961.
 1052         (e) Fees for nationally standardized, norm-referenced
 1053  achievement tests, Advanced Placement examinations, industry
 1054  certification examinations, assessments related to postsecondary
 1055  education, or other such assessments.
 1056         (f) Contributions to the Stanley G. Tate Florida Prepaid
 1057  College Program pursuant to s. 1009.98 or the Florida College
 1058  Savings Program pursuant to s. 1009.981, for the benefit of the
 1059  eligible student.
 1060         (g) Contracted services provided by a public school or a
 1061  school district, including classes. A student who receives
 1062  services under this paragraph is not considered enrolled in a
 1063  public school for the purpose of eligibility as provided in
 1064  subsection (4).
 1065         (h) Tuition and fees for part-time tutoring services
 1066  provided by a person who holds a valid Florida educator’s
 1067  certificate issued pursuant to s. 1012.56; a person who holds an
 1068  adjunct teaching certificate issued pursuant to s. 1012.57; a
 1069  person who has a bachelor’s degree or a graduate degree in the
 1070  subject area in which instruction is given; or a person who has
 1071  demonstrated a mastery of subject area knowledge as provided in
 1072  s. 1012.56(5). Any part-time tutoring undertaken pursuant to
 1073  this paragraph does not qualify as regular school attendance as
 1074  defined in s. 1003.01(13)(e).
 1075         (i) Fees for summer education programs.
 1076         (j) Fees for after-school education programs.
 1077         (k) Transition services, including a coordinated set of
 1078  activities focused on improving the academic and functional
 1079  achievement of the student to facilitate his or her movement
 1080  from school to post-school activities and based on the
 1081  individual student’s needs. Transition services may be provided
 1082  by job coaches or pursuant to subsection (14).
 1083         (l) Fees for an annual evaluation of educational progress
 1084  by a state-certified teacher under s. 1002.41(1)(f), if this
 1085  option is chosen for a home education student.
 1086         (m) Tuition and fees associated with programs offered by
 1087  Voluntary Prekindergarten Education Program providers approved
 1088  pursuant to s. 1002.55 and school readiness providers approved
 1089  pursuant to s. 1002.88.
 1090         (n) Fees for services provided at a center that is a member
 1091  of the Professional Association of Therapeutic Horsemanship
 1092  International.
 1093         (o) Fees for services provided by a therapist who is
 1094  certified by the Certification Board for Music Therapists or
 1095  credentialed by the Art Therapy Credentials Board, Inc.
 1096         (p) Tuition and fees associated with enrollment in a
 1097  nationally or internationally recognized research-based training
 1098  program, for a child with a neurological disorder or brain
 1099  damage.
 1100         (q)Tuition and fees associated with a student’s
 1101  participation in classes or lessons relating to art, music, or
 1102  theater. The instructor of the classes or lessons must:
 1103         1.Hold a valid or expired Florida educator’s certificate
 1104  issued under s. 1012.56 in art, music, or drama;
 1105         2.Have 3 years of employment experience in art, music, or
 1106  theater, as demonstrated by employment records;
 1107         3.Hold a baccalaureate degree or higher from a
 1108  postsecondary educational institution with a major in music,
 1109  art, theater, or drama or related field; or
 1110         4.Hold a certification or national accreditation in music,
 1111  art, theater, or drama.
 1112         (r)Transportation expenses, which may not exceed $750
 1113  annually, in connection with meeting the student’s educational
 1114  needs under this section.
 1115  
 1116  A service provider who receives payments pursuant to this
 1117  subsection may not share or refund any moneys from the McKay
 1118  Gardiner Scholarship with the parent or participating student
 1119  and may not issue rebates to such persons. A parent, student, or
 1120  service provider may not bill an insurance company, Medicaid, or
 1121  any other agency for the same services that are paid for with
 1122  McKay-Gardiner Scholarship funds. Funding provided pursuant to
 1123  this subsection for a child eligible for enrollment in the
 1124  Voluntary Prekindergarten Education Program constitutes funding
 1125  for the child under part V of this chapter, and no additional
 1126  funding may be provided for the child under part V.
 1127         (6) TERMS OF THE PROGRAM.—For purposes of continuity of
 1128  educational choice and program integrity:
 1129         (a)1. Program payments made by the state to an organization
 1130  for a McKay-Gardiner Scholarship under this section must
 1131  continue until:
 1132         a. A program student’s parent does not renew program
 1133  eligibility;
 1134         b. The organization determines that a program student is
 1135  not eligible for program renewal;
 1136         c. The Commissioner of Education suspends or revokes
 1137  program participation or use of funds pursuant to subparagraph
 1138  (b)(1);
 1139         d. A program student’s parent has forfeited participation
 1140  in the program for failure to comply with subsection (11);
 1141         e. A program student enrolls in a public school; or
 1142         f. A program student graduates from high school or attains
 1143  22 years of age, whichever occurs first.
 1144         2. Reimbursements for program expenditures may continue
 1145  until the account balance is expended or the account is closed
 1146  pursuant to paragraph (b).
 1147         (b)1. The commissioner must close a student’s scholarship
 1148  account, and any remaining funds, including, but not limited to,
 1149  contributions made to the Stanley G. Tate Florida Prepaid
 1150  College Program or earnings from or contributions made to the
 1151  Florida College Savings Program using program funds pursuant to
 1152  paragraph (5)(f), revert to the state after:
 1153         a. Denial or revocation of program eligibility by the
 1154  commissioner for fraud or abuse, including, but not limited to,
 1155  the student or student’s parent accepting any payment, refund,
 1156  or rebate from a provider of services received pursuant to
 1157  subsection (5); however, a private school may discount tuition
 1158  if the private school deems it necessary;
 1159         b. Any period of 3 consecutive years after high school
 1160  completion or graduation during which the student has not been
 1161  enrolled in an eligible postsecondary educational institution or
 1162  a program offered by such an institution; or
 1163         c. Two consecutive fiscal years in which an account has
 1164  been inactive.
 1165         2. The commissioner must notify the parent and the
 1166  organization when a McKay-Gardiner Scholarship account is closed
 1167  and program funds revert to the state.
 1168         (7) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 1169         (a)By each April 1 and within 10 days after an individual
 1170  education plan meeting or a 504 accommodation plan is issued
 1171  under s. 504 of the Rehabilitation Act of 1973, a school
 1172  district shall notify the parent of the student of all options
 1173  available pursuant to this section, and shall inform the parent
 1174  of the availability of the department’s website for additional
 1175  information on McKay-Gardiner Scholarships.
 1176         (b)1. The parent of a student with a disability who does
 1177  not have an IEP or who seeks a reevaluation of an existing IEP
 1178  may request an IEP meeting and evaluation from the school
 1179  district in order to obtain or revise a matrix of services. The
 1180  school district shall notify a parent who has made a request for
 1181  an IEP that the district is required to complete the IEP and
 1182  matrix of services within 30 days after receiving notice of the
 1183  parent’s request. The school district shall conduct a meeting
 1184  and develop an IEP and matrix of services within 30 days after
 1185  receipt of the parent’s request in accordance with State Board
 1186  of Education rule.
 1187         2.a. The school district must provide the student’s parent
 1188  and the department with the student’s matrix level within 10
 1189  calendar days after its completion.
 1190         b. A school district may change a matrix of services only
 1191  if the change is a result of an IEP reevaluation or to correct a
 1192  technical, typographical, or calculation error.
 1193         (c) For each student participating in the program who
 1194  chooses to participate in statewide, standardized assessments
 1195  under s. 1008.22 or the Florida Alternate Assessment, the school
 1196  district in which the student resides must notify the student
 1197  and his or her parent about the locations and times of all
 1198  statewide, standardized assessments.
 1199         (8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 1200  private school may be sectarian or nonsectarian and shall:
 1201         (a) Comply with all requirements for private schools
 1202  participating in state school choice scholarship programs
 1203  pursuant to s. 1002.421.
 1204         (b)1. Annually administer or make provision for students
 1205  participating in the program in grades 3 through 10 to take one
 1206  of the nationally norm-referenced tests identified by the
 1207  Department of Education or the statewide assessments
 1208  administered pursuant to s. 1008.22. This subparagraph does not
 1209  apply to students with disabilities for whom standardized
 1210  testing is not appropriate. A participating private school shall
 1211  report a student’s scores to the parent.
 1212         2. Administer the statewide assessments pursuant to s.
 1213  1008.22 if a private school chooses to offer the statewide
 1214  assessments. A participating private school may choose to offer
 1215  and administer the statewide assessments to all students who
 1216  attend the private school in grades 3 through 10 and must submit
 1217  a request in writing to the Department of Education by March 1
 1218  of each year in order to administer the statewide assessments in
 1219  the subsequent school year.
 1220  
 1221  If a private school fails to meet the requirements of this
 1222  subsection or s. 1002.421, the commissioner may determine that
 1223  the private school is ineligible to participate in the
 1224  scholarship program.
 1225         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 1226  shall:
 1227         (a) Comply with s. 1002.394(8)(a)-(g).
 1228         (b) Maintain on its website a list of approved providers as
 1229  required by s. 1002.66, eligible postsecondary educational
 1230  institutions, eligible private schools, and eligible
 1231  organizations and may identify or provide links to lists of
 1232  other approved providers.
 1233         (c) Require each organization to verify eligible
 1234  expenditures before the distribution of funds for any
 1235  expenditures made pursuant to paragraphs (5)(a) and (b). Review
 1236  of expenditures made for services specified in paragraphs
 1237  (5)(c)-(r) may be completed after the purchase is made.
 1238         (d) Investigate any written complaint of a violation of
 1239  this section by a parent, a student, a private school, a public
 1240  school, a school district, an organization, a provider, or
 1241  another appropriate party in accordance with the process
 1242  established under s. 1002.421.
 1243         (e) Require quarterly reports by an organization, which
 1244  must include, at a minimum, the number of students participating
 1245  in the program; the demographics of program participants; the
 1246  disability category of program participants; the matrix level of
 1247  services, if known; the program award amount per student; the
 1248  total expenditures for the purposes specified in subsection (5);
 1249  the types of providers of services to students; and any other
 1250  information deemed necessary by the department.
 1251         (f) Compare the list of students participating in the
 1252  program with the public school student enrollment lists,
 1253  Voluntary Prekindergarten Education Program enrollment lists,
 1254  and the list of students participating in school choice
 1255  scholarship programs established pursuant to this chapter before
 1256  each scholarship award is provided to the organization, and
 1257  subsequently throughout the school year, to avoid duplicate
 1258  payments and confirm program eligibility.
 1259         (10) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.—
 1260         (a) The Commissioner of Education:
 1261         1. May suspend or revoke program participation or use of
 1262  program funds by the student or participation or eligibility of
 1263  an organization, eligible postsecondary educational institution,
 1264  approved provider, or other party for a violation of this
 1265  section.
 1266         2. May determine the length of, and conditions for lifting,
 1267  a suspension or revocation specified in this subsection.
 1268         3. May recover unexpended program funds or withhold payment
 1269  of an equal amount of program funds to recover program funds
 1270  that were not authorized for use.
 1271         4. Shall deny or terminate program participation upon a
 1272  parent’s forfeiture of a McKay-Gardiner Scholarship pursuant to
 1273  subsection (11).
 1274         (b) In determining whether to suspend or revoke
 1275  participation or lift a suspension or revocation in accordance
 1276  with this subsection, the commissioner may consider factors that
 1277  include, but are not limited to, acts or omissions that led to a
 1278  previous suspension or revocation of participation in a state or
 1279  federal program or an education scholarship program; failure to
 1280  reimburse the organization for funds improperly received or
 1281  retained; failure to reimburse government funds improperly
 1282  received or retained; imposition of a prior criminal sanction
 1283  related to the person or entity or its officers or employees;
 1284  imposition of a civil fine or administrative fine, license
 1285  revocation or suspension, or program eligibility suspension,
 1286  termination, or revocation related to a person’s or entity’s
 1287  management or operation; or other types of criminal proceedings
 1288  in which the person or entity or its officers or employees were
 1289  found guilty of, regardless of adjudication, or entered a plea
 1290  of nolo contendere or guilty to, any offense involving fraud,
 1291  deceit, dishonesty, or moral turpitude.
 1292         (11) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 1293  PARTICIPATION.—A parent who applies for program participation
 1294  under this section is exercising his or her parental option to
 1295  determine the appropriate placement or services that best meet
 1296  the needs of his or her child.
 1297         (a) To satisfy or maintain program eligibility, including
 1298  eligibility to receive and spend program payments, the parent
 1299  must sign an agreement with the organization and annually submit
 1300  a sworn compliance statement to the organization to:
 1301         1. Affirm that the student is enrolled in a program that
 1302  meets regular school attendance requirements as provided in s.
 1303  1003.01(13)(b), (c), or (d).
 1304         2. Affirm that the program funds are used only for
 1305  authorized purposes serving the student’s educational needs, as
 1306  described in subsection (5).
 1307         3. Affirm that the parent is responsible for the education
 1308  of his or her student by, as applicable:
 1309         a. Requiring the student to take an assessment in
 1310  accordance with paragraph (8)(b);
 1311         b. Providing an annual evaluation in accordance with s.
 1312  1002.41(1)(f); or
 1313         c. Requiring the child to take any preassessments and
 1314  postassessments selected by the provider if the child is 4 years
 1315  of age and is enrolled in a program provided by an eligible
 1316  Voluntary Prekindergarten Education Program provider. This sub
 1317  subparagraph does not apply to a student with disabilities for
 1318  whom a preassessment and postassessment are not appropriate. A
 1319  participating provider shall report a student’s scores to the
 1320  parent.
 1321         4. Affirm that the student remains in good standing with
 1322  the provider or school if one of those options is selected by
 1323  the parent.
 1324         (b) The parent must file an application for initial program
 1325  participation with an organization by a date established by the
 1326  organization.
 1327         (c) The parent must enroll his or her child in a program
 1328  from a Voluntary Prekindergarten Education Program provider
 1329  authorized under s. 1002.55, a school readiness provider
 1330  authorized under s. 1002.88, or an eligible private school if
 1331  either option is selected by the parent.
 1332         (d) The parent must renew participation in the program by a
 1333  date set by the nonprofit scholarship-funding organization in
 1334  order for a student to be eligible to receive funding. A student
 1335  whose participation in the program is not renewed may continue
 1336  to spend scholarship funds that are in his or her account from
 1337  prior years unless the account is closed pursuant to paragraph
 1338  (6)(b). Notwithstanding any changes to the student’s IEP, a
 1339  student who was previously eligible for participation in the
 1340  program remains eligible to apply for renewal. However, for a
 1341  high-risk child to continue to participate in the program in the
 1342  school year after he or she reaches 6 years of age, the child’s
 1343  application for renewal of program participation must contain
 1344  documentation that the child has a disability as defined in
 1345  paragraph (2)(d), other than high-risk status.
 1346         (e) The parent is responsible for procuring the services
 1347  necessary to educate the student. If a parent does not procure
 1348  the necessary educational services for the student and the
 1349  student’s account has been inactive for 2 consecutive fiscal
 1350  years, the student’s account must be closed pursuant to
 1351  paragraph (6)(b). When the student receives a McKay-Gardiner
 1352  Scholarship, the district school board is not obligated to
 1353  provide the student with a free, appropriate public education.
 1354  For purposes of s. 1003.57 and the Individuals with Disabilities
 1355  in Education Act, a participating student has only those rights
 1356  that apply to all other unilaterally, parentally placed
 1357  students, except that, when requested by the parent, school
 1358  district personnel must develop an individual education plan or
 1359  matrix level of services.
 1360         (f) The parent is responsible for all eligible expenses in
 1361  excess of the amount of the McKay-Gardiner Scholarship.
 1362         (g) The parent may not transfer any prepaid college plan or
 1363  college savings plan funds contributed pursuant to paragraph
 1364  (5)(f) to another beneficiary while the plan contains funds
 1365  contributed pursuant to this section.
 1366         (h) The parent may not receive a payment, refund, or rebate
 1367  from an approved provider of any services under this program.
 1368  
 1369  A participant who fails to comply with this subsection forfeits
 1370  the McKay-Gardiner Scholarship.
 1371         (12) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 1372  APPLICATION.—In order to participate in the scholarship program
 1373  created under this section, a charitable organization that seeks
 1374  to be a nonprofit scholarship-funding organization must submit
 1375  an application for initial approval or renewal to the Office of
 1376  Independent Education and Parental Choice no later than
 1377  September 1 of each year before the school year for which the
 1378  organization intends to offer scholarships.
 1379         (a) An application for initial approval must include:
 1380         1. A copy of the organization’s incorporation documents and
 1381  registration with the Division of Corporations of the Department
 1382  of State.
 1383         2. A copy of the organization’s Internal Revenue Service
 1384  determination letter as a s. 501(c)(3) not-for-profit
 1385  organization.
 1386         3. A description of the organization’s financial plan which
 1387  demonstrates sufficient funds to operate throughout the school
 1388  year.
 1389         4. A description of the geographic region that the
 1390  organization intends to serve and an analysis of the demand and
 1391  unmet need for eligible students in that area.
 1392         5. The organization’s organizational chart.
 1393         6. A description of the criteria and methodology that the
 1394  organization will use to evaluate scholarship eligibility.
 1395         7. A description of the application process, including
 1396  deadlines and any associated fees.
 1397         8. A description of the deadlines for attendance
 1398  verification and scholarship payments.
 1399         9. A copy of the organization’s policies on conflict of
 1400  interest and whistleblowers.
 1401         10. A copy of a surety bond or letter of credit to secure
 1402  the faithful performance of the obligations of the eligible
 1403  nonprofit scholarship-funding organization in accordance with
 1404  this section in an amount equal to 25 percent of the scholarship
 1405  funds anticipated for each school year or $100,000, whichever is
 1406  greater. The surety bond or letter of credit must specify that
 1407  any claim against the bond or letter of credit may be made only
 1408  by an eligible nonprofit scholarship-funding organization to
 1409  provide scholarships to and on behalf of students who would have
 1410  had scholarships funded if it were not for the diversion of
 1411  funds giving rise to the claim against the bond or letter of
 1412  credit.
 1413         (b) In addition to the information required under paragraph
 1414  (a), an application for renewal must include:
 1415         1. A surety bond or letter of credit to secure the faithful
 1416  performance of the obligations of the eligible nonprofit
 1417  scholarship-funding organization in accordance with this section
 1418  equal to the amount of undisbursed funds held by the
 1419  organization based on the annual report submitted pursuant to
 1420  paragraph (13)(l). The amount of the surety bond or letter of
 1421  credit must be at least $100,000, but not more than $25 million.
 1422  The surety bond or letter of credit must specify that any claim
 1423  against the bond or letter of credit may be made only by an
 1424  eligible nonprofit scholarship-funding organization to provide
 1425  scholarships to and on behalf of students who would have had
 1426  scholarships funded if it were not for the diversion of funds
 1427  giving rise to the claim against the bond or letter of credit.
 1428         2. The organization’s completed Internal Revenue Service
 1429  Form 990 submitted no later than November 30 of the year before
 1430  the school year for which the organization intends to offer the
 1431  scholarships, notwithstanding the September 1 application
 1432  deadline.
 1433         3. A copy of any statutorily required audit which the
 1434  organization must provide to the Department of Education and
 1435  Auditor General.
 1436         4. An annual report that includes:
 1437         a. The number of students who completed applications, by
 1438  county and by grade.
 1439         b. The number of students who were approved for
 1440  scholarships, by county and by grade.
 1441         c. The number of students who received funding for
 1442  scholarships within each funding category, by county and by
 1443  grade.
 1444         d. The amount of funds received, the amount of funds
 1445  distributed in scholarships, and an accounting of remaining
 1446  funds and the obligation of those funds.
 1447         e. A detailed accounting of how the organization spent the
 1448  administrative funds allowable under paragraph (13)(f).
 1449         (c) In consultation with the Department of Revenue and the
 1450  Chief Financial Officer, the Office of Independent Education and
 1451  Parental Choice shall review the application. The Department of
 1452  Education shall notify the organization in writing of any
 1453  deficiencies within 30 days after receipt of the application and
 1454  allow the organization 30 days to correct any deficiencies.
 1455         (d) Within 30 days after receipt of the finalized
 1456  application by the Office of Independent Education and Parental
 1457  Choice, the Commissioner of Education shall recommend approval
 1458  or disapproval of the application to the State Board of
 1459  Education. The State Board of Education shall consider the
 1460  application and recommendation at the next scheduled meeting,
 1461  adhering to appropriate meeting notice requirements. If the
 1462  State Board of Education disapproves the organization’s
 1463  application, it must provide the organization with a written
 1464  explanation of that determination. The State Board of
 1465  Education’s action is not subject to chapter 120.
 1466         (e) If the State Board of Education disapproves the renewal
 1467  of a nonprofit scholarship-funding organization, the
 1468  organization must notify the affected eligible students and
 1469  parents of the decision within 15 days after disapproval. An
 1470  eligible student affected by the disapproval of an
 1471  organization’s participation remains eligible under this section
 1472  until the end of the school year in which the organization was
 1473  disapproved. The student must apply and be accepted by another
 1474  eligible nonprofit scholarship-funding organization for the
 1475  upcoming school year. The student must be given priority under
 1476  paragraph (13)(e).
 1477         (f) All remaining student accounts with funds held by a
 1478  nonprofit scholarship-funding organization that is disapproved
 1479  for participation must be transferred to the student’s account
 1480  established with the eligible nonprofit scholarship-funding
 1481  organization that accepts the student. All transferred funds
 1482  must be deposited by the eligible nonprofit scholarship-funding
 1483  organization receiving such funds into the student’s scholarship
 1484  account. All other remaining funds must be transferred to the
 1485  department. All transferred amounts received by any eligible
 1486  nonprofit scholarship-funding organization must be separately
 1487  disclosed in the annual financial audit required under
 1488  subsection (13).
 1489         (g) A nonprofit scholarship-funding organization is a
 1490  renewing organization if it maintains continuous approval and
 1491  participation in the program. An organization that chooses not
 1492  to participate for 1 year or more or is disapproved to
 1493  participate for 1 year or more must submit an application for
 1494  initial approval in order to participate in the program again.
 1495         (h) The State Board of Education shall adopt rules
 1496  providing guidelines for receiving, reviewing, and approving
 1497  applications for new and renewing nonprofit scholarship-funding
 1498  organizations. The rules must include a process for compiling
 1499  input and recommendations from the Chief Financial Officer, the
 1500  Department of Revenue, and the Department of Education. The
 1501  rules also must require that the nonprofit scholarship-funding
 1502  organization make a brief presentation to assist the State Board
 1503  of Education in its decision.
 1504         (i)A state university; or an independent nonprofit college
 1505  chartered in this state or independent nonprofit university
 1506  chartered in this state that are eligible to participate in the
 1507  William L. Boyd, IV, Effective Access to Student Education Grant
 1508  Program and are accredited by the Commission on Colleges of the
 1509  Southern Association of Colleges and Schools is exempt from the
 1510  initial or renewal application process, but must file a
 1511  registration notice with the Department of Education to be an
 1512  eligible nonprofit scholarship-funding organization. The State
 1513  Board of Education shall adopt rules that identify the procedure
 1514  for filing the registration notice with the department. The
 1515  rules must identify appropriate reporting requirements for
 1516  fiscal, programmatic, and performance accountability purposes
 1517  consistent with this section, but may not exceed the
 1518  requirements for eligible nonprofit scholarship-funding
 1519  organizations for charitable organizations.
 1520         (13) OBLIGATIONS OF ELIGIBLE SCHOLARSHIP-FUNDING
 1521  ORGANIZATIONS.—An organization may establish McKay-Gardiner
 1522  Scholarships for eligible students by:
 1523         (a) Complying with the requirements of s. 1002.394(11)(a)
 1524  (h).
 1525         (b) Receiving applications and determining student
 1526  eligibility in accordance with the requirements of this section.
 1527  When an application is approved, the organization must provide
 1528  the department with information on the student to enable the
 1529  department to determine student funding in accordance with
 1530  subsection (15).
 1531         (c) Providing scholarships on a first-come, first-served
 1532  basis, based upon the funds provided, and notifying parents of
 1533  their respective student’s receipt of a scholarship.
 1534         (d) Establishing a date by which a parent must confirm
 1535  initial or continuing participation in the program.
 1536         (e) Reviewing applications and awarding scholarship funds
 1537  to approved applicants using the following order of priority:
 1538         1.a.For the 2021-2022 school year, a student who received
 1539  a John M. McKay Scholarship for Students with Disabilities or a
 1540  Gardiner Scholarship in the 2020-2021 school year and meets the
 1541  eligibility requirements in subsection (3) is eligible for a
 1542  McKay-Gardiner Scholarship in the 2021-2022 school year.
 1543         b. For the 2022-2023 school year and thereafter, renewing
 1544  students from the previous school year under this section.
 1545         2. Students retained on the previous school year’s waiting
 1546  list.
 1547         3. An eligible student who meets the criteria for an
 1548  initial award pursuant to subsection (3).
 1549  
 1550  An approved student who does not receive a scholarship must be
 1551  placed on the waiting list in the order in which his or her
 1552  application is approved. An eligible student who does not
 1553  receive a scholarship within the fiscal year shall be retained
 1554  on the waiting list for the subsequent year.
 1555         (f)Using an amount not to exceed 2.5 percent of the total
 1556  calculated amount of all scholarships awarded under this section
 1557  for administrative expenses associated with performing functions
 1558  authorized under this section.
 1559         (g) Verifying qualifying educational expenditures pursuant
 1560  to paragraph (9)(c) and requesting the return of any funds used
 1561  for unauthorized purposes.
 1562         (h) Returning any remaining program funds to the department
 1563  pursuant to paragraph (6)(b).
 1564         (i) Notifying the parent about the availability of, and the
 1565  requirements associated with requesting, an initial IEP or IEP
 1566  reevaluation every 3 years for each student participating in the
 1567  program.
 1568         (j) Documenting each scholarship student’s eligibility for
 1569  a fiscal year before granting a scholarship for that fiscal year
 1570  pursuant to paragraph (3)(b). A student is ineligible for a
 1571  scholarship if the student’s account has been inactive for 2
 1572  consecutive fiscal years and the student’s account has been
 1573  closed pursuant to paragraph (6)(b).
 1574         (k) Submitting in a timely fashion any information
 1575  requested by the department relating to the program.
 1576         (l)Preparing and submitting quarterly reports to the
 1577  department pursuant to paragraph (9)(e).
 1578         (m) Notifying the department of any violation of this
 1579  section.
 1580         (14) TRANSITION-TO-WORK PROGRAM.—A student participating in
 1581  the McKay-Gardiner Scholarship Program who is at least 17 years
 1582  of age, but not older than 22 years of age, and who has not
 1583  received a high school diploma or certificate of completion is
 1584  eligible for enrollment in a transition-to-work program provided
 1585  by a private school or job coach. A transition-to-work program
 1586  must consist of academic instruction, work skills training, and
 1587  a volunteer or paid work experience.
 1588         (a) To offer a transition-to-work program, a participating
 1589  private school or job coach must:
 1590         1. Develop a transition-to-work program plan, which must
 1591  include a written description of the academic instruction and
 1592  work skills training students will receive and the goals for
 1593  students in the program.
 1594         2. Submit the transition-to-work program plan to the Office
 1595  of Independent Education and Parental Choice.
 1596         3. Develop a personalized transition-to-work program plan
 1597  for each student enrolled in the program. The student’s parent,
 1598  the student, and the school principal or job coach must sign the
 1599  personalized plan. The personalized plan must be submitted to
 1600  the Office of Independent Education and Parental Choice upon
 1601  request by the office.
 1602         4. Provide a release of liability form that must be signed
 1603  by the student’s parent, the student, and a representative of
 1604  the business offering the volunteer or paid work experience.
 1605         5. Assign a case manager or job coach to visit the
 1606  student’s job site on a weekly basis to observe the student and,
 1607  if necessary, provide support and guidance to the student.
 1608         6. Provide to the parent and student a quarterly report
 1609  that documents and explains the student’s progress and
 1610  performance in the program.
 1611         7. Maintain accurate attendance and performance records for
 1612  the student.
 1613         (b) A student enrolled in a transition-to-work program
 1614  must, at a minimum:
 1615         1. Receive 15 instructional hours that must include
 1616  academic instruction and work skills training.
 1617         2. Participate in 10 hours of work at the student’s
 1618  volunteer or paid work experience.
 1619         (c) To participate in a transition-to-work program, a
 1620  business must:
 1621         1. Maintain an accurate record of the student’s performance
 1622  and hours worked and provide the information to the private
 1623  school.
 1624         2. Comply with all state and federal child labor laws.
 1625         (15) FUNDING AND PAYMENT.—
 1626         (a)The scholarship is established for up to 50,000 student
 1627  FTE annually beginning with the 2021-2022 school year. For the
 1628  2022-2023 school year and each year thereafter, the maximum
 1629  number of student FTE in the scholarship program under this
 1630  section must increase by 7 percent of the total student FTE for
 1631  the prior year.
 1632         1. For a student who has a Level I to Level III matrix of
 1633  services or a doctor’s diagnosis, the calculated scholarship
 1634  amount for a student participating in the program must be based
 1635  upon the grade level and district school to which the student
 1636  would have been assigned as 97.5 percent of the funds per
 1637  unweighted full-time equivalent in the Florida Education Finance
 1638  Program for a student in the basic exceptional student education
 1639  program pursuant to s. 1011.62(1)(c)1. and (e)1.c., plus a per
 1640  full-time equivalent share of funds for all categorical
 1641  programs, as funded in the General Appropriations Act, except
 1642  that for the exceptional student education guaranteed allocation
 1643  as provided in s. 1011.62(1)(e)1.c. and 2., the funds must be
 1644  allocated based on the school district’s average funds per
 1645  Exceptional Student Education student.
 1646         2.For a student with a Level IV or Level V matrix of
 1647  services, the calculated scholarship amount must be based upon
 1648  the district school to which the student would have been
 1649  assigned as 97.5 percent of the funds per full-time equivalent
 1650  for the Level IV or Level V Exceptional Student Education
 1651  program pursuant to s. 1011.62(1)(c)2.a. or b., plus a per-full
 1652  time equivalent share of funds for all categorical programs, as
 1653  funded in the General Appropriations Act.
 1654         3.For a student with a 504 plan, the calculated
 1655  scholarship amount must be based upon the grade level and
 1656  district school to which the student would have been assigned as
 1657  97.5 percent of the funds per unweighted full-time equivalent in
 1658  the Florida Education Finance Program for a student in the basic
 1659  education program established pursuant to s. 1011.62(1)(c)1.,
 1660  plus a per-full-time equivalent share of funds for all
 1661  categorical programs, as funded in the General Appropriations
 1662  Act.
 1663         (b)At the time of each Florida Education Finance Program
 1664  student membership survey, the scholarship funding organization
 1665  shall report to the Department of Education student enrollment,
 1666  FTE, and total award amounts by county, delineated by FEFP
 1667  program, and grade and matrix level for all students who are
 1668  participating in the McKay-Gardiner Scholarship Program.
 1669  Students with a 504 plan must be separately identified. For the
 1670  purpose of this paragraph, an FTE shall be equal to four
 1671  quarterly scholarship payments.
 1672         (c)Following notification on July 1, September 1, December
 1673  1, and February 1 of the number of program participants, the
 1674  department shall transfer the amount calculated pursuant to
 1675  paragraph (a) to organizations for quarterly disbursement to
 1676  accounts maintained by organizations pursuant to paragraph
 1677  (13)(a) for parents of participating students. When a student
 1678  enters the scholarship program, the department must receive from
 1679  an organization all documentation required for the student’s
 1680  participation at least 30 days before the first quarterly
 1681  scholarship payment is made for the student.
 1682         (d) Upon notification from the organization that an
 1683  application has been approved for the program, the department
 1684  shall release the student’s scholarship funds to the
 1685  organization, to be deposited into the student’s account in four
 1686  equal amounts no later than September 1, November 1, February 1,
 1687  and April 1 of each school year in which the scholarship is in
 1688  force.
 1689         (e) Accrued interest in the student’s account is in
 1690  addition to, and not part of, the awarded funds. Program funds
 1691  include both the awarded funds and accrued interest.
 1692         (f) The organization may develop a system for payment of
 1693  benefits by funds transfer, including, but not limited to, debit
 1694  cards, electronic payment cards, or any other means of payment
 1695  which the department deems to be commercially viable or cost
 1696  effective. A student’s scholarship award may not be reduced for
 1697  debit card or electronic payment fees. Commodities or services
 1698  related to the development of such a system must be procured by
 1699  competitive solicitation unless they are purchased from a state
 1700  term contract pursuant to s. 287.056.
 1701         (g) Moneys received pursuant to this section do not
 1702  constitute taxable income to the qualified student or the parent
 1703  of the qualified student.
 1704         (16) OBLIGATIONS OF THE AUDITOR GENERAL.—
 1705         (a) The Auditor General shall review all audit reports
 1706  submitted pursuant to subsection (13). The Auditor General shall
 1707  request any significant items that were omitted in violation of
 1708  a rule adopted by the Auditor General. The organization shall
 1709  provide such items within 45 days after the date of the request.
 1710  If the scholarship-funding organization does not comply with the
 1711  Auditor General’s request, the Auditor General must notify the
 1712  Legislative Auditing Committee.
 1713         (b) At least once every 3 years, the Auditor General shall
 1714  conduct an operational audit of accounts and records of each
 1715  organization that participates in the program. As part of this
 1716  audit, the Auditor General, at a minimum, shall verify the total
 1717  number of students served and the eligibility of reimbursements
 1718  made by the organization and transmit that information to the
 1719  department. The Auditor General shall provide the commissioner
 1720  with a copy of each annual operational audit performed pursuant
 1721  to this subsection within 10 days after the audit is finalized.
 1722         (c) The Auditor General shall notify the department of any
 1723  organization that fails to comply with a request for
 1724  information.
 1725         (17) OBLIGATIONS RELATED TO APPROVED PROVIDERS.—The
 1726  Department of Health, the Agency for Persons with Disabilities,
 1727  and the Department of Education shall coordinate with an
 1728  organization to provide easy or automated access to lists of
 1729  licensed providers of services specified in paragraph (5)(c) to
 1730  ensure efficient administration of the program.
 1731         (18) LIABILITY.—The state is not liable for the awarding of
 1732  funds or for any use of funds awarded under this section.
 1733         (19) SCOPE OF AUTHORITY.—This section does not expand the
 1734  authority of the state, its officers, or any school district to
 1735  impose additional regulation on participating private schools,
 1736  independent postsecondary educational institutions, and private
 1737  providers beyond that reasonably necessary to enforce
 1738  requirements expressly set forth in this section.
 1739         (20) RULES.—The State Board of Education shall adopt rules
 1740  pursuant to ss. 120.536(1) and 120.54 to administer this
 1741  section.
 1742         Section 17. Section 1002.385, Florida Statutes, is
 1743  repealed.
 1744         Section 18. Section 1002.39, Florida Statutes, is repealed.
 1745         Section 19. Section 1002.394, Florida Statutes, is amended
 1746  to read:
 1747         1002.394 The Family Empowerment Scholarship Program.—
 1748         (1) PURPOSE.—The Family Empowerment Scholarship Program is
 1749  established to provide children of families in this state which
 1750  have limited financial resources with educational options to
 1751  achieve success in their education.
 1752         (2) DEFINITIONS.—As used in this section, the term:
 1753         (a) “Approved provider” means a provider approved by the
 1754  department “Department” means the Department of Education.
 1755         (b) “Curriculum” means a complete course of study for a
 1756  particular content area or grade level, including any required
 1757  supplemental materials, teachers’ manuals, and associated online
 1758  instruction.
 1759         (c) “Department” means the Department of Education.
 1760         (d) “Direct certification list” means the certified list of
 1761  children who qualify for the food assistance program, the
 1762  Temporary Assistance for Needy Families Program, or the Food
 1763  Distribution Program on Indian Reservations provided to the
 1764  Department of Education by the Department of Children and
 1765  Families.
 1766         (e) “Eligible nonprofit scholarship-funding organization”
 1767  or “organization” means a state university, an independent
 1768  college or university that is eligible to participate in the
 1769  William L. Boyd, IV, Effective Access to Student Education Grant
 1770  Program located and chartered in this state which is not for
 1771  profit and is accredited by the Commission on Colleges of the
 1772  Southern Association of Colleges and Schools, or is a charitable
 1773  organization that: has the same meaning as provided in s.
 1774  1002.395(2)(f).
 1775         1. Is exempt from federal income tax pursuant to s.
 1776  501(c)(3) of the Internal Revenue Code;
 1777         2. Is a Florida entity formed under chapter 605, chapter
 1778  607, or chapter 617 and whose principal office is located in
 1779  this state; and
 1780         3. Complies with subsections (11) and (14).
 1781         (f) “Eligible postsecondary educational institution” means
 1782  a Florida College System institution; a state university; a
 1783  school district technical center; a school district adult
 1784  general education center; an independent college or university
 1785  that is eligible to participate in the William L. Boyd, IV,
 1786  Effective Access to Student Education Grant Program under s.
 1787  1009.89; or an accredited independent postsecondary educational
 1788  institution, as defined in s. 1005.02, which is licensed to
 1789  operate in this state under part III of chapter 1005.
 1790         (g)(c) “Eligible private school” means a private school as
 1791  defined in s. 1002.01 located in this state which offers an
 1792  education to students in any grade from Kindergarten through
 1793  grade 12 and:
 1794         1. Meets the requirements of ss. 1002.42 and 1002.421; and
 1795         2. Meets the applicable requirements imposed under this
 1796  chapter, if the private school participates in a scholarship
 1797  program under this chapter has the same meaning as provided in
 1798  s. 1002.395(2)(g).
 1799         (h) “Household income” has the same meaning as the term
 1800  “income” as defined in the Income Eligibility Guidelines for
 1801  free and reduced price meals under the National School Lunch
 1802  Program in 7 C.F.R. part 210 as published in the Federal
 1803  Register by the United States Department of Agriculture.
 1804         (i) “Inactive” means that no eligible expenditures have
 1805  been made from a student scholarship account funded pursuant to
 1806  this section.
 1807         (j) “Incident” means battery; harassment; hazing; bullying;
 1808  kidnapping; physical attack; robbery; sexual offenses,
 1809  harassment, assault, or battery; threat or intimidation; or
 1810  fighting at school, as defined by the department in accordance
 1811  with s. 1006.147(4).
 1812         (k) “Owner or operator” includes:
 1813         1. An owner, president, officer, or director of an eligible
 1814  nonprofit scholarship-funding organization or a person with
 1815  equivalent decisionmaking authority over an eligible nonprofit
 1816  scholarship-funding organization.
 1817         2. An owner, operator, superintendent, or principal of an
 1818  eligible private school or a person with equivalent
 1819  decisionmaking authority over an eligible private school.
 1820         (l)(d) “Parent” means a resident of this state who is a
 1821  parent, as defined in s. 1000.21.
 1822         (m)(e) “Program” means the Family Empowerment Scholarship
 1823  Program.
 1824         (n) “School” means any educational program or activity
 1825  conducted by a public K-12 educational institution, any school
 1826  related or school-sponsored program or activity, and riding on a
 1827  school bus as defined in s. 1006.25(1), including waiting at a
 1828  school bus stop.
 1829         (3) INITIAL SCHOLARSHIP ELIGIBILITY.—A student is eligible
 1830  for a Family Empowerment Scholarship under this section if the
 1831  student meets the following criteria:
 1832         (a)1. The student is on the direct certification list as
 1833  defined in paragraph (2)(d) pursuant to s. 1002.395(2)(c) or the
 1834  student’s household income level does not exceed 300 185 percent
 1835  of the federal poverty level or an adjusted maximum percent of
 1836  the federal poverty level established pursuant to paragraph (e);
 1837  or
 1838         2. The student is:
 1839         a. Currently placed, or during the previous state fiscal
 1840  year was placed, in foster care or in out-of-home care as
 1841  defined in s. 39.01;
 1842         b.A sibling of a student who is participating in the
 1843  scholarship program under this subsection, if the student
 1844  resides in the same household as the sibling; or
 1845         c. Enrolled in a Florida public school in kindergarten
 1846  through grade 12 and reported an incident in accordance with
 1847  paragraph (7)(b)
 1848         3.The student’s household income level does not exceed 300
 1849  percent of the federal poverty level or an adjusted maximum
 1850  percent of the federal poverty level as established pursuant to
 1851  paragraph (e).
 1852  
 1853  A student who initially receives a scholarship based on
 1854  eligibility under this subsection subparagraph 2. remains
 1855  eligible to participate until the student graduates from high
 1856  school or attains the age of 21 years, whichever occurs first,
 1857  regardless of the student’s household income level. A sibling of
 1858  a student who is participating in the scholarship program under
 1859  this subsection is eligible for a scholarship if the student
 1860  resides in the same household as the sibling.
 1861         (b)1. The student is eligible to enroll in kindergarten
 1862  through grade 12 in a public school in this state;
 1863         2. The student has spent the prior school year in
 1864  attendance at a Florida public school; or
 1865         3. Beginning with the 2020-2021 school year, the student
 1866  received a scholarship pursuant to s. 1002.395 during the
 1867  previous school year but did not receive a renewal scholarship
 1868  based solely on the eligible nonprofit scholarship-funding
 1869  organization’s lack of available funds after the organization
 1870  fully exhausts its efforts to use funds available for awards
 1871  under ss. 1002.395 and 1002.40(11)(i). Eligible nonprofit
 1872  scholarship-funding organizations with students who meet the
 1873  eligibility criterion of this subparagraph must annually notify
 1874  the department in a format and by a date established by the
 1875  department.
 1876  
 1877  For purposes of this paragraph, the term “prior school year in
 1878  attendance” means that the student was enrolled full time and
 1879  reported by a school district for funding during the preceding
 1880  October and February Florida Education Finance Program surveys
 1881  in kindergarten through grade 12, which includes time spent in a
 1882  Department of Juvenile Justice commitment program if funded
 1883  under the Florida Education Finance Program. However, a
 1884  dependent child of a member of the United States Armed Forces
 1885  who transfers to a school in this state from out of state or
 1886  from a foreign country due to a parent’s permanent change of
 1887  station orders or a foster child is exempt from the prior public
 1888  school attendance requirement under this paragraph, but must
 1889  meet the other eligibility requirements specified under this
 1890  section to participate in the program.
 1891         (c) The parent has applied to an eligible nonprofit
 1892  scholarship-funding organization to participate in the program
 1893  by a date set by the organization obtained acceptance for
 1894  admission of the student to a private school that is eligible
 1895  for the program under subsection (8), and the parent has
 1896  requested a scholarship from the Department of Education by a
 1897  date established by the department pursuant to paragraph (7)(e),
 1898  but no later than at least 60 days before the date of the first
 1899  scholarship payment. The application request must be
 1900  communicated directly to the organization department in a manner
 1901  that creates a written or electronic record of the application
 1902  request and the date of receipt of the application request. The
 1903  department must notify the school district of the parent’s
 1904  intent upon receipt of the parent’s request.
 1905         (d) The student is awarded a scholarship in accordance with
 1906  the following priority order:
 1907         1. An eligible student who received a Family Empowerment
 1908  Scholarship during the previous school year school year, or a
 1909  Florida Tax Credit Scholarship or Hope Scholarship during the
 1910  2020-2021 school year, and requested a renewal scholarship
 1911  award.
 1912         2. An eligible student who meets the criteria for an
 1913  initial award under both paragraphs paragraph (a) and (b) and
 1914  was retained on the previous school year’s wait list
 1915  subparagraph (b)3.
 1916         3. An eligible student who meets the criteria for an
 1917  initial award under subparagraph (a)2. and paragraph (b) (b)2.
 1918  and either subparagraph (a)1. or subparagraph (a)2.
 1919         4. An eligible student who meets the criteria for an
 1920  initial award under subparagraph (a)1. (b)1. and paragraph (b),
 1921  and the student’s household income level does not exceed 185
 1922  percent of the federal poverty level either subparagraph (a)1.
 1923  or subparagraph (a)2.
 1924         5. An eligible student who meets the criteria for an
 1925  initial award under subparagraph (a)1. (a)3. and, paragraph (b)
 1926  in priority order, either subparagraph (b)2. or subparagraph
 1927  (b)1.
 1928  
 1929  An approved student who does not receive a scholarship must be
 1930  placed on the wait list in the order in which his or her
 1931  application is approved. An eligible student who does not
 1932  receive a scholarship within the fiscal year must be retained on
 1933  the wait list for the subsequent year.
 1934         (e) The student’s household income level does not exceed an
 1935  adjusted maximum percent of the federal poverty level that is
 1936  increased by 25 percent in the fiscal year following any fiscal
 1937  year in which more than 5 percent of the available scholarships
 1938  authorized under subsection (12)(11) have not been awarded.
 1939         (4) TERM OF SCHOLARSHIP.—For purposes of continuity of
 1940  educational choice and program integrity:
 1941         (a)1.Program payments made by the state to an organization
 1942  for a Family Empowerment Scholarship under this section must
 1943  continue until:
 1944         a. The parent does not renew program eligibility;
 1945         b. The organization determines that the student is not
 1946  eligible for program renewal;
 1947         c. The Commissioner of Education suspends or revokes
 1948  program participation or use of funds pursuant to subparagraph
 1949  (b)(1);
 1950         d. The student’s parent has forfeited participation in the
 1951  program for failure to comply with subsection (10);
 1952         e. The student enrolls in a public school; or
 1953         f. The student graduates from high school or attains 21
 1954  years of age, whichever occurs first. However, if a student
 1955  enters a Department of Juvenile Justice detention center for a
 1956  period of no more than 21 days, the student is not considered to
 1957  have returned to a public school for that purpose.
 1958         2. Reimbursements for program expenditures may continue
 1959  until the account balance is expended or the account is closed
 1960  pursuant to paragraph (b) For purposes of continuity of
 1961  educational choice, a Family Empowerment Scholarship shall
 1962  remain in force until the student returns to a public school,
 1963  graduates from high school, or reaches the age of 21, whichever
 1964  occurs first. A scholarship student who enrolls in a public
 1965  school or public school program is considered to have returned
 1966  to a public school for the purpose of determining the end of the
 1967  scholarship’s term. However, if a student enters a Department of
 1968  Juvenile Justice detention center for a period of no more than
 1969  21 days, the student is not considered to have returned to a
 1970  public school for that purpose.
 1971         (b)1.The commissioner shall close a student’s scholarship
 1972  account, and any remaining funds, including, but not limited to,
 1973  contributions made to the Stanley G. Tate Florida Prepaid
 1974  College Program or earnings from or contributions made to the
 1975  Florida College Savings Program using program funds pursuant to
 1976  paragraph (6)(e), revert to the state after:
 1977         a. Denial or revocation of program eligibility by the
 1978  commissioner for fraud or abuse, including, but not limited to,
 1979  the student or the student’s parent accepting any payment,
 1980  refund, or rebate in any manner from a provider of any services
 1981  received pursuant to subsection (6); however, a private school
 1982  may discount tuition if the private school deems it necessary;
 1983         b. Any period of 2 consecutive years after high school
 1984  completion or graduation during which the student has not been
 1985  enrolled in an eligible postsecondary educational institution or
 1986  a program offered by the institution; or
 1987         c. The account has been inactive for 2 consecutive fiscal
 1988  years prior to high school completion or graduation Upon
 1989  reasonable notice to the department and the school district, the
 1990  student’s parent may remove the student from the private school
 1991  and place the student in a public school in accordance with this
 1992  section.
 1993         2. The commissioner must notify the parent and the
 1994  organization when a Family Empowerment Scholarship account is
 1995  closed and program funds revert to the state.
 1996         (c) Upon reasonable notice to the department, the student’s
 1997  parent may move the student from one participating private
 1998  school to another participating private school.
 1999         (5) SCHOLARSHIP PROHIBITIONS.—A student is not eligible for
 2000  a Family Empowerment Scholarship while he or she is:
 2001         (a) Enrolled in a public school, including, but not limited
 2002  to, the Florida School for the Deaf and the Blind, the College
 2003  Preparatory Boarding Academy, a developmental research school
 2004  authorized under s. 1002.32, or a charter school authorized
 2005  under this chapter;
 2006         (b) Enrolled in a school operating for the purpose of
 2007  providing educational services to youth in a Department of
 2008  Juvenile Justice commitment program;
 2009         (c) Receiving any other educational scholarship pursuant to
 2010  this chapter; or
 2011         (d) Participating in a home education program as defined in
 2012  s. 1002.01(1);
 2013         (e) Participating in a private tutoring program pursuant to
 2014  s. 1002.43; or
 2015         (f) Participating in a virtual school, correspondence
 2016  school, or distance learning program that receives state funding
 2017  pursuant to the student’s participation.
 2018         (6) AUTHORIZED USES OF PROGRAM FUNDS.—Program funds must be
 2019  used to meet the individual educational needs of an eligible
 2020  student and may be spent for the following purposes:
 2021         (a) Instructional materials, including digital devices and
 2022  Internet access to access digital instructional materials.
 2023         (b) Curriculum as defined in paragraph (2)(b).
 2024         (c) Tuition or fees associated with full-time or part-time
 2025  enrollment in a home education program, an eligible private
 2026  school, an eligible postsecondary educational institution or a
 2027  program offered by the postsecondary institution, a private
 2028  tutoring program authorized under s. 1002.43, a virtual program
 2029  offered by a department-approved private online provider that
 2030  meets the provider qualifications specified in s. 1002.45(2)(a),
 2031  the Florida Virtual School as a private paying student, or an
 2032  approved online course offered pursuant to s. 1003.499 or s.
 2033  1004.0961.
 2034         (d) Fees for nationally standardized, norm-referenced
 2035  achievement tests, Advanced Placement examinations, industry
 2036  certification examinations, assessments related to postsecondary
 2037  education, or other assessments.
 2038         (e) Contributions to the Stanley G. Tate Florida Prepaid
 2039  College Program pursuant to s. 1009.98 or the Florida College
 2040  Savings Program pursuant to s. 1009.981, for the benefit of the
 2041  eligible student.
 2042         (f) Contracted services provided by a public school or
 2043  school district, including classes. A student who receives
 2044  services under a contract under this paragraph is not considered
 2045  enrolled in a public school for eligibility purposes as
 2046  specified in subsection (5).
 2047         (g) Tuition and fees for part-time tutoring services
 2048  provided by a person who holds a valid Florida educator’s
 2049  certificate pursuant to s. 1012.56; a person who holds an
 2050  adjunct teaching certificate pursuant to s. 1012.57; a person
 2051  who has a bachelor’s degree or a graduate degree in the subject
 2052  area in which instruction is given; or a person who has
 2053  demonstrated a mastery of subject area knowledge pursuant to s.
 2054  1012.56(5). As used in this paragraph, the term “part-time
 2055  tutoring services” does not qualify as regular school attendance
 2056  as defined in s. 1003.01(13)(e).
 2057         (h) Fees for summer education programs.
 2058         (i) Fees for after-school education programs.
 2059         (j) Fees for an annual evaluation of educational progress
 2060  by a state-certified teacher under s. 1002.41(1)(f), if this
 2061  option is chosen for a home education student.
 2062         (k)Transportation expenses that may not exceed $750
 2063  annually to meet the student’s educational needs under this
 2064  subsection.
 2065  
 2066  A provider of any services receiving payments pursuant to this
 2067  subsection may not share, refund, or rebate any moneys from the
 2068  Family Empowerment Scholarship with the parent or participating
 2069  student in any manner.
 2070         (7)(6) SCHOOL DISTRICT OBLIGATIONS.—
 2071         (a) By July 15, 2019, and by April 1 of each year
 2072  thereafter, a school district shall inform all households within
 2073  the district receiving free or reduced-priced meals under the
 2074  National School Lunch Act of their eligibility to apply to the
 2075  department for a Family Empowerment Scholarship. A parent who
 2076  chooses to enroll his or her eligible student in a public school
 2077  that is different from the school in which the student was
 2078  assigned pursuant to s. 1002.31 or enrolls his or her eligible
 2079  student in a lab school as defined in s. 1002.32 is eligible for
 2080  a scholarship to transport the student as provided in paragraph
 2081  (12)(c). The form of such notice shall be provided by the
 2082  department, and the school district shall include the provided
 2083  form in any normal correspondence with eligible households. Such
 2084  notice is limited to once a year.
 2085         (b) Upon receipt of a report of an incident, the school
 2086  principal, or his or her designee, shall provide a copy of the
 2087  report to the parent and investigate the incident to determine
 2088  if the incident must be reported as required by s. 1006.147(4).
 2089  Within 24 hours after receipt of the report, the principal or
 2090  his or her designee shall provide a copy of the report to the
 2091  parent of the alleged offender and to the superintendent. Upon
 2092  conclusion of the investigation or within 15 days after the
 2093  incident was reported, whichever occurs first, the school
 2094  district shall notify the parent of the program and offer the
 2095  parent an opportunity to request and receive a Family
 2096  Empowerment Scholarship.
 2097         (c) The school district in which a participating student
 2098  resides must notify the student and his or her parent about the
 2099  locations and times to take all statewide assessments under s.
 2100  1008.22 if the student chooses to participate in such
 2101  assessments. Upon the request of the department, a school
 2102  district shall coordinate with the department to provide to a
 2103  participating private school the statewide assessments
 2104  administered under s. 1008.22 and any related materials for
 2105  administering the assessments. For a student who participates in
 2106  the Family Empowerment Scholarship Program whose parent requests
 2107  that the student take the statewide assessments under s.
 2108  1008.22, the district in which the student attends a private
 2109  school shall provide locations and times to take all statewide
 2110  assessments. A school district is responsible for implementing
 2111  test administrations at a participating private school,
 2112  including the:
 2113         1. Provision of training for private school staff on test
 2114  security and assessment administration procedures;
 2115         2. Distribution of testing materials to a private school;
 2116         3. Retrieval of testing materials from a private school;
 2117         4. Provision of the required format for a private school to
 2118  submit information to the district for test administration and
 2119  enrollment purposes; and
 2120         5. Provision of any required assistance, monitoring, or
 2121  investigation at a private school.
 2122         (d)(c) Each school district must publish information about
 2123  the Family Empowerment Scholarship Program on the district’s
 2124  website homepage, which,. at a minimum, the published
 2125  information must include a website link to the Family
 2126  Empowerment Scholarship Program published on the Department of
 2127  Education website as well as a telephone number and e-mail that
 2128  students and parents may use to contact relevant personnel in
 2129  the school district to obtain information about the scholarship.
 2130         (8)(7) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 2131  shall:
 2132         (a) Annually verify the eligibility of nonprofit
 2133  scholarship-funding organizations that meet the requirements of
 2134  paragraph (2)(e).
 2135         (b)(a) Publish and update, as necessary, information on the
 2136  department website about the scholarship programs under this
 2137  chapter Family Empowerment Scholarship Program, including, but
 2138  not limited to, student eligibility criteria, parental
 2139  responsibilities, and relevant data.
 2140         (c)(b) Cross-check prior to each distribution of funds the
 2141  list of participating scholarship students with the public
 2142  school enrollment lists before each scholarship payment to avoid
 2143  duplication.
 2144         (d)(c) Maintain and publish a list of nationally norm
 2145  referenced tests identified for purposes of satisfying the
 2146  testing requirement in subparagraph (9)(c)1. (8)(c)1. The tests
 2147  must meet industry standards of quality in accordance with state
 2148  board rule.
 2149         (e)(d) Notify eligible nonprofit scholarship-funding
 2150  organizations of the deadlines for submitting the verified list
 2151  of students determined to be eligible for an initial or renewal
 2152  scholarship.
 2153         (f)(e)Distribute each student’s scholarship funds on a
 2154  quarterly basis to the eligible nonprofit scholarship-funding
 2155  organization, to be deposited into the student’s account
 2156  Establish deadlines for the receipt of initial applications and
 2157  renewal notifications in order to implement the priority order
 2158  for scholarship awards pursuant to paragraph (3)(d).
 2159         (g) Notify an eligible nonprofit scholarship-funding
 2160  organization of any of the organization’s or other eligible
 2161  nonprofit scholarship-funding organization’s identified students
 2162  who are receiving educational scholarships pursuant to chapter
 2163  1002.
 2164         (h)Issue a project grant award to a state university, to
 2165  which participating private schools must report the scores of
 2166  participating students on the nationally norm-referenced tests
 2167  or the statewide assessments administered by the private school
 2168  in grades 3 through 10. The project term is 2 years, and the
 2169  amount of the project is up to $250,000 per year. The project
 2170  grant award must be reissued in 2-year intervals in accordance
 2171  with this paragraph.
 2172         1. The state university must annually report to the
 2173  Department of Education on the student performance of
 2174  participating students:
 2175         a. On a statewide basis. The report shall also include, to
 2176  the extent possible, a comparison of scholarship students’
 2177  performance to the statewide student performance of public
 2178  school students with socioeconomic backgrounds similar to those
 2179  of students participating in the scholarship program. To
 2180  minimize costs and reduce time required for the state
 2181  university’s analysis and evaluation, the Department of
 2182  Education shall coordinate with the state university to provide
 2183  data in order to conduct analyses of matched students from
 2184  public school assessment data and calculate control group
 2185  student performance using an agreed-upon methodology; and
 2186         b. On an individual school basis. For the 2020-2021 school
 2187  year, the annual report must include student performance for
 2188  each participating private school in which at least 51 percent
 2189  of the total enrolled students in the private school
 2190  participated in the Florida Tax Credit Scholarship Program or
 2191  the Family Empowerment Scholarship Program. Beginning with the
 2192  2021-2022 school year, the annual report must include student
 2193  performance for each participating private school in which at
 2194  least 51 percent of the total enrolled students in the private
 2195  school participated in the Family Empowerment Scholarship
 2196  Program. The report shall be according to each participating
 2197  private school, and for participating students, in which there
 2198  are at least 30 participating students who have scores for tests
 2199  administered. If the state university determines that the 30
 2200  participating-student cell size may be reduced without
 2201  disclosing personally identifiable information, as described in
 2202  34 C.F.R. s. 99.12, of a participating student, the state
 2203  university may reduce the participating-student cell size, but
 2204  the cell size may not be reduced to less than 10 participating
 2205  students. The department shall provide each private school’s
 2206  prior school year student enrollment information to the state
 2207  university no later than June 15 of each year, or as requested
 2208  by the state university.
 2209         2. The sharing and reporting of student performance data
 2210  under this paragraph must be in accordance with the requirements
 2211  of ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g, the Family
 2212  Educational Rights and Privacy Act, and the applicable rules and
 2213  regulations issued pursuant thereto, and must be for the sole
 2214  purpose of creating the annual report required by subparagraph
 2215  1. All parties must preserve the confidentiality of such
 2216  information as required by law. The annual report may not
 2217  disaggregate data to a level that will identify individual
 2218  participating schools, except as required under sub-subparagraph
 2219  1.b., or disclose the academic level of individual students.
 2220         3. The annual report required by subparagraph 1. must be
 2221  published by the Department of Education on its website.
 2222         (i) Maintain on its website a list of approved providers,
 2223  including eligible postsecondary educational institutions,
 2224  eligible private schools, and organizations. The department may
 2225  identify or provide links to lists of other approved providers.
 2226         (j) Require each organization to verify eligible
 2227  expenditures before the distribution of funds for any
 2228  expenditures made pursuant to paragraphs (6)(a) and (b). Review
 2229  of expenditures made for services specified in paragraphs
 2230  (6)(c)-(k) may be completed after the purchase is made.
 2231         (k) Require quarterly reports by an eligible nonprofit
 2232  scholarship-funding organization regarding the overall number of
 2233  students participating in the scholarship program, the number of
 2234  home education students participating in the scholarship
 2235  program, the number of students attending a private school
 2236  participating in the scholarship program, the private schools at
 2237  which the students are enrolled, and other information the
 2238  department deems necessary.
 2239         (l) Provide a process to match the direct certification
 2240  list with the scholarship application data submitted by any
 2241  nonprofit scholarship-funding organization eligible to receive
 2242  the 2.5 percent administrative allowance under paragraph
 2243  (11)(k).
 2244         (m) Contract with an independent entity to provide an
 2245  annual evaluation of the program by:
 2246         1. Reviewing the school bullying prevention education
 2247  program, school climate, and code of student conduct of each
 2248  public school from which 10 or more students transferred to
 2249  another public school or private school using the Hope
 2250  Scholarship or Family Empowerment Scholarship to determine areas
 2251  in the school or school district procedures involving reporting,
 2252  investigating, and communicating a parent’s and student’s rights
 2253  which are in need of improvement. At a minimum, the review must
 2254  include:
 2255         a. An assessment of the investigation time and quality of
 2256  the response of the school and the school district.
 2257         b. An assessment of the effectiveness of communication
 2258  procedures with the students involved in an incident, the
 2259  students’ parents, and the school and school district personnel.
 2260         c. An analysis of school incident and discipline data.
 2261         d. The challenges and obstacles relating to implementing
 2262  recommendations from the review.
 2263         2. Reviewing the school bullying prevention education
 2264  program, school climate, and code of student conduct of each
 2265  public school to which a student transferred if the student was
 2266  from a school identified in subparagraph 1. in order to identify
 2267  best practices and make recommendations to the public school at
 2268  which the incidents occurred.
 2269         3. Surveying the parents of participating students to
 2270  determine academic, safety, and school climate satisfaction and
 2271  to identify any challenges to or obstacles in addressing an
 2272  incident or relating to the use of the scholarship.
 2273         (n) Investigate any written complaint of a violation of
 2274  this section by a parent, a student, a private school, a public
 2275  school, a school district, an organization, a provider, or
 2276  another appropriate party in accordance with the process
 2277  established under s. 1002.421.
 2278         (9)(8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—To be
 2279  eligible to participate in the Family Empowerment Scholarship
 2280  Program, a private school may be sectarian or nonsectarian and
 2281  must:
 2282         (a) Comply with all requirements for private schools
 2283  participating in state school choice scholarship programs
 2284  pursuant to s. 1002.421.
 2285         (b) Provide to the organization department all
 2286  documentation required for a student’s participation, including
 2287  the private school’s and student’s fee schedules, at least 30
 2288  days before any quarterly scholarship payment is made for the
 2289  student pursuant to paragraph (12)(f) (11)(f). A student is not
 2290  eligible to receive a quarterly scholarship payment if the
 2291  private school fails to meet this deadline.
 2292         (c)1. Annually administer or make provision for students
 2293  participating in the program in grades 3 through 10 to take one
 2294  of the nationally norm-referenced tests that are identified by
 2295  the department pursuant to paragraph (8)(d) (7)(c) or to take
 2296  the statewide assessments pursuant to s. 1008.22. Students with
 2297  disabilities for whom standardized testing is not appropriate
 2298  are exempt from this requirement. A participating private school
 2299  shall report a student’s scores to his or her parent. By August
 2300  15 of each year, a participating private school must report the
 2301  scores of all participating students to a state university as
 2302  described in paragraph (8)(h) s. 1002.395(9)(f).
 2303         2. Administer the statewide assessments pursuant to s.
 2304  1008.22 if the private school chooses to offer the statewide
 2305  assessments. A participating private school may choose to offer
 2306  and administer the statewide assessments to all students who
 2307  attend the private school in grades 3 through 10 and must submit
 2308  a request in writing to the department by March 1 of each year
 2309  in order to administer the statewide assessments in the
 2310  subsequent school year.
 2311  
 2312  If a private school fails to meet the requirements of this
 2313  subsection or s. 1002.421, the commissioner may determine that
 2314  the private school is ineligible to participate in the
 2315  scholarship program.
 2316         (10)(9) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 2317  PARTICIPATION.—A parent who applies for a Family Empowerment
 2318  Scholarship is exercising his or her parental option to
 2319  determine the appropriate placement or the services that best
 2320  meets the needs of his or her child place his or her child in a
 2321  private school.
 2322         (a) To satisfy or maintain program eligibility, including
 2323  eligibility to receive and spend program payments, the parent
 2324  must sign an agreement with the organization and annually submit
 2325  a sworn compliance statement to the organization to:
 2326         1. Affirm that the student is enrolled in a program that
 2327  meets regular school attendance requirements as provided in s.
 2328  1003.01(13)(b)-(e).
 2329         2. Affirm that the program funds are used only for
 2330  authorized purposes serving the student’s educational needs, as
 2331  described in subsection (6).
 2332         3. Affirm that the parent is responsible for the education
 2333  of his or her student by, as applicable:
 2334         a. Requiring the student to take an assessment in
 2335  accordance with paragraph (9)(c); or
 2336         b. Providing an annual evaluation in accordance with s.
 2337  1002.41(1)(f).
 2338         4. Affirm that the student remains in good standing with
 2339  the provider or school if those options are selected by the
 2340  parent The parent must select the private school and apply for
 2341  the admission of his or her student.
 2342         (b) The parent must request the scholarship at least 60
 2343  days before the date of the first scholarship payment.
 2344         (c)The parent must inform the applicable school district
 2345  when the parent withdraws his or her student from a public
 2346  school to attend an eligible private school.
 2347         (d) Any student participating in the program must remain in
 2348  attendance throughout the school year unless excused by the
 2349  school for illness or other good cause.
 2350         (c)(e)If Before enrolling in a private school, a student
 2351  and his or her parent or guardian must meet with the private
 2352  school’s principal or the principal’s designee to review the
 2353  school’s academic programs and policies, customized educational
 2354  programs, code of student conduct, and attendance policies.
 2355         (d)(f) The parent shall ensure that a the student
 2356  participating in the scholarship program and enrolled in a
 2357  private school takes the norm-referenced assessment offered by
 2358  the private school. The parent may also choose to have the
 2359  student participate in the statewide assessments pursuant to
 2360  paragraph (9)(c) (6)(b).
 2361         (e)(g) If the parent requests that the student
 2362  participating in the program take all statewide assessments
 2363  required pursuant to s. 1008.22, the parent is responsible for
 2364  transporting the student to the assessment site designated by
 2365  the school district.
 2366         (h)Upon receipt of a scholarship warrant, the parent to
 2367  whom the warrant is issued must restrictively endorse the
 2368  warrant to the private school for deposit into the private
 2369  school’s account. The parent may not designate any entity or
 2370  individual associated with the participating private school as
 2371  the parent’s attorney in fact to endorse a scholarship warrant.
 2372  A participant who fails to comply with this paragraph forfeits
 2373  the scholarship.
 2374         (f)(i) The parent must annually renew participation in the
 2375  program by the date established by the organization department
 2376  pursuant to paragraph (7)(e). A student whose participation in
 2377  the program is not renewed may continue to spend scholarship
 2378  funds that are in his or her account from prior years unless the
 2379  account must be closed pursuant to paragraph (4)(b).
 2380         (g)The parent is responsible for procuring the services
 2381  necessary to educate the student. If a parent does not procure
 2382  the necessary educational services for the student and the
 2383  student’s account has been inactive for 2 consecutive fiscal
 2384  years, the student is ineligible and the student’s account must
 2385  be closed pursuant to paragraph (4)(b).
 2386         (h)The parent is responsible for all eligible expenses in
 2387  excess of the Family Empowerment Scholarship.
 2388         (i)The parent may not transfer any prepaid college plan or
 2389  college savings plan funds contributed pursuant to paragraph
 2390  (6)(e) to another beneficiary while the plan contains funds
 2391  contributed pursuant to this section.
 2392         (j)The parent may not receive a payment, refund, or rebate
 2393  from an approved provider of any services under this program.
 2394  
 2395  A participant who fails to comply with this subsection forfeits
 2396  the Family Empowerment Scholarship.
 2397         (11)(10) OBLIGATIONS OF ELIGIBLE SCHOLARSHIP-FUNDING
 2398  ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 2399  organization:
 2400         (a) Must comply with the antidiscrimination provisions of
 2401  42 U.S.C. s. 2000d.
 2402         (b) Must comply with the following background check
 2403  requirements:
 2404         1. All owners and operators as defined in subparagraph
 2405  (2)(k)1., before employment or engagement to provide services,
 2406  are subject to a level 2 background screening as provided under
 2407  chapter 435. The fingerprints for the background screening must
 2408  be electronically submitted to the Department of Law Enforcement
 2409  and can be taken by an authorized law enforcement agency or by
 2410  an employee of the eligible nonprofit scholarship-funding
 2411  organization or a private company who is trained to take
 2412  fingerprints. However, the complete set of fingerprints of an
 2413  owner or operator may not be taken by the owner or operator. The
 2414  results of the state and national criminal history check must be
 2415  provided to the Department of Education for screening under
 2416  chapter 435. The cost of the background screening may be borne
 2417  by the eligible nonprofit scholarship-funding organization or
 2418  the owner or operator.
 2419         2. Every 5 years following employment or engagement to
 2420  provide services or association with an eligible nonprofit
 2421  scholarship-funding organization, each owner or operator must
 2422  meet level 2 screening standards as described in s. 435.04, at
 2423  which time the nonprofit scholarship-funding organization shall
 2424  request the Department of Law Enforcement to forward the
 2425  fingerprints to the Federal Bureau of Investigation for level 2
 2426  screening. If the fingerprints of an owner or operator are not
 2427  retained by the Department of Law Enforcement under subparagraph
 2428  3., the owner or operator must electronically file a complete
 2429  set of fingerprints with the Department of Law Enforcement. Upon
 2430  submission of fingerprints for this purpose, the eligible
 2431  nonprofit scholarship-funding organization shall request that
 2432  the Department of Law Enforcement forward the fingerprints to
 2433  the Federal Bureau of Investigation for level 2 screening, and
 2434  the fingerprints must be retained by the Department of Law
 2435  Enforcement under subparagraph 3.
 2436         3. Fingerprints submitted to the Department of Law
 2437  Enforcement as required by this paragraph must be retained by
 2438  the Department of Law Enforcement in a manner approved by rule
 2439  and entered in the statewide automated biometric identification
 2440  system authorized by s. 943.05(2)(b). The fingerprints must
 2441  continue to be available for all purposes and uses authorized
 2442  for arrest fingerprints entered in the statewide automated
 2443  biometric identification system pursuant to s. 943.051.
 2444         4. The Department of Law Enforcement shall search all
 2445  arrest fingerprints received under s. 943.051 against the
 2446  fingerprints retained in the statewide automated biometric
 2447  identification system under subparagraph 3. Any arrest record
 2448  that is identified with an owner’s or operator’s fingerprints
 2449  must be reported to the Department of Education. The Department
 2450  of Education shall participate in this search process by paying
 2451  an annual fee to the Department of Law Enforcement and by
 2452  informing the Department of Law Enforcement of any change in the
 2453  employment, engagement, or association status of the owners or
 2454  operators whose fingerprints are retained under subparagraph 3.
 2455  The Department of Law Enforcement shall adopt a rule setting the
 2456  amount of the annual fee to be imposed upon the Department of
 2457  Education for performing these services and establishing the
 2458  procedures for the retention of owner or operator fingerprints
 2459  and the dissemination of search results. The fee may be borne by
 2460  the owner or operator of the nonprofit scholarship-funding
 2461  organization.
 2462         5. A nonprofit scholarship-funding organization whose owner
 2463  or operator fails the level 2 background screening is not
 2464  eligible to provide scholarships under this section.
 2465         6. A nonprofit scholarship-funding organization whose owner
 2466  or operator in the last 7 years has filed for personal
 2467  bankruptcy or corporate bankruptcy in a corporation of which he
 2468  or she owned more than 20 percent is not eligible to provide
 2469  scholarships under this section.
 2470         7. In addition to the offenses listed in s. 435.04, a
 2471  person required to undergo background screening pursuant to this
 2472  part or authorizing statutes may not have an arrest awaiting
 2473  final disposition for, must not have been found guilty of, or
 2474  entered a plea of nolo contendere to, regardless of
 2475  adjudication, and must not have been adjudicated delinquent, and
 2476  the record must not have been sealed or expunged for, any of the
 2477  following offenses or any similar offense of another
 2478  jurisdiction:
 2479         a. Any authorizing statutes, if the offense was a felony.
 2480         b. This chapter, if the offense was a felony.
 2481         c. Section 409.920, relating to Medicaid provider fraud.
 2482         d. Section 409.9201, relating to Medicaid fraud.
 2483         e. Section 741.28, relating to domestic violence.
 2484         f. Section 817.034, relating to fraudulent acts through
 2485  mail, wire, radio, electromagnetic, photoelectronic, or
 2486  photooptical systems.
 2487         g. Section 817.234, relating to false and fraudulent
 2488  insurance claims.
 2489         h. Section 817.505, relating to patient brokering.
 2490         i. Section 817.568, relating to criminal use of personal
 2491  identification information.
 2492         j. Section 817.60, relating to obtaining a credit card
 2493  through fraudulent means.
 2494         k. Section 817.61, relating to fraudulent use of credit
 2495  cards, if the offense was a felony.
 2496         l. Section 831.01, relating to forgery.
 2497         m. Section 831.02, relating to uttering forged instruments.
 2498         n. Section 831.07, relating to forging bank bills, checks,
 2499  drafts, or promissory notes.
 2500         o. Section 831.09, relating to uttering forged bank bills,
 2501  checks, drafts, or promissory notes.
 2502         p. Section 831.30, relating to fraud in obtaining medicinal
 2503  drugs.
 2504         q. Section 831.31, relating to the sale, manufacture,
 2505  delivery, or possession with the intent to sell, manufacture, or
 2506  deliver any counterfeit controlled substance, if the offense was
 2507  a felony.
 2508         (c) May not have an owner or operator who owns or operates
 2509  an eligible private school that is participating in the
 2510  scholarship program.
 2511         (d) Shall establish and maintain separate accounts for each
 2512  eligible student. For each account, the organization must
 2513  maintain a record of accrued interest that is retained in the
 2514  student’s account and available only for authorized program
 2515  expenditures.
 2516         (e) May not restrict or reserve scholarships for use at a
 2517  particular private school or provide scholarships to a child of
 2518  an owner or operator.
 2519         (f) Must provide to the Auditor General and the Department
 2520  of Education a report on the results of an annual financial
 2521  audit of its accounts and records conducted by an independent
 2522  certified public accountant in accordance with auditing
 2523  standards generally accepted in the United States, government
 2524  auditing standards, and rules promulgated by the Auditor
 2525  General. The audit report must include a report on financial
 2526  statements presented in accordance with generally accepted
 2527  accounting principles. Audit reports must be provided to the
 2528  Auditor General and the Department of Education within 180 days
 2529  after completion of the eligible nonprofit scholarship-funding
 2530  organization’s fiscal year. The Auditor General shall review all
 2531  audit reports submitted pursuant to this paragraph. The Auditor
 2532  General shall request any significant items that were omitted in
 2533  violation of a rule adopted by the Auditor General. The items
 2534  must be provided within 45 days after the date of the request.
 2535  If the scholarship-funding organization does not comply with the
 2536  Auditor General’s request, the Auditor General shall notify the
 2537  Legislative Auditing Committee.
 2538         (g)1.a. Must use agreed-upon procedures that uniformly
 2539  apply to all private schools and determine, at a minimum,
 2540  whether the private school has been verified as eligible by the
 2541  Department of Education under s. 1002.421; has an adequate
 2542  accounting system, system of financial controls, and process for
 2543  deposit and classification of scholarship funds; and has
 2544  properly expended scholarship funds for education-related
 2545  expenses.
 2546         b.Must participate in a joint review of the agreed-upon
 2547  procedures and guidelines under sub-subparagraph a., by February
 2548  of each biennium, if the scholarship-funding organization
 2549  provided more than $250,000 in scholarship funds to an eligible
 2550  private school under this chapter during the state fiscal year
 2551  preceding the biennial review. If the procedures and guidelines
 2552  are revised, the revisions must be provided to private schools
 2553  and the Commissioner of Education by March 15 of the year in
 2554  which the revisions were completed. The revised agreed-upon
 2555  procedures take effect the subsequent school year.
 2556         c.Must monitor the compliance of a private school with s.
 2557  1002.421(1)(q) if the scholarship-funding organization provided
 2558  the majority of the scholarship funding to the school. For each
 2559  private school subject to s. 1002.421(1)(q), the appropriate
 2560  scholarship-funding organization shall annually notify the
 2561  Commissioner of Education by October 30 of:
 2562         (I)A private school’s failure to submit a report required
 2563  under s. 1002.421(1)(q); or
 2564         (II)Any material exceptions set forth in the report
 2565  required under s. 1002.421(1)(q).
 2566         2.Must seek input from the accrediting associations that
 2567  are members of the Florida Association of Academic Nonpublic
 2568  Schools and the Department of Education when conducting a joint
 2569  review of the procedures and guidelines under sub-subparagraph
 2570  1.b.
 2571         (h) Must establish a date by which the parent of a
 2572  participating student must confirm continuing participation in
 2573  the program.
 2574         (i)(a) Shall verify the household income level of students
 2575  pursuant to subparagraph (3)(a)1. and submit the verified list
 2576  of students and related documentation to the department.
 2577         (j)(b) Shall award initial and renewal scholarships to
 2578  eligible students in priority order pursuant to subsection (3)
 2579  and notify parents of their receipt of a scholarship paragraph
 2580  (3)(d). The eligible nonprofit scholarship-funding organization
 2581  shall implement the deadlines established by the department
 2582  pursuant to paragraphs (7)(d) and (e).
 2583         (k)(c) May, from eligible contributions received pursuant
 2584  to s. 1002.395(6)(j)1., use an amount not to exceed 2.5 1
 2585  percent of the total amount of all scholarships awarded under
 2586  this section for administrative expenses associated with
 2587  performing functions under this section. Such administrative
 2588  expense amount is considered within the 3 percent limit on the
 2589  total amount an organization may use to administer scholarships
 2590  under this chapter.
 2591         (l) Must verify qualifying educational expenditures
 2592  pursuant to the requirement of paragraph (8)(j) and must request
 2593  the return of any funds used for unauthorized purposes.
 2594         (m) Must return any remaining program funds to the
 2595  department pursuant to paragraph (4)(b).
 2596         (n) Must document each scholarship student’s eligibility
 2597  pursuant to subsection (3) for a fiscal year before granting a
 2598  scholarship for that fiscal year. A student is ineligible for a
 2599  scholarship if the student’s account has been inactive for 2
 2600  fiscal years and the student’s account has been closed pursuant
 2601  to paragraph (4)(b).
 2602         (o) Must allow a student who meets the requirements of
 2603  subparagraph (3)(a)2. or a dependent child of a parent who is a
 2604  member of the United States Armed Forces to apply for a
 2605  scholarship at any time.
 2606         (p)(d) Must, in a timely manner, submit any information
 2607  requested by the department relating to the scholarship under
 2608  this section.
 2609         (q) Must establish a date by which the parent of a
 2610  participating student must confirm continuing participation in
 2611  the program.
 2612         (r) Must prepare and submit quarterly reports to the
 2613  department pursuant to paragraph (8)(k).
 2614         (s)(e) Must notify the department about any violation of
 2615  this section by a parent or a private school.
 2616         (12)(11) SCHOLARSHIP FUNDING AND PAYMENT.—
 2617         (a) The scholarship is established for up to 18,000
 2618  students annually beginning in the 2019-2020 school year.
 2619  Beginning in the 2020-2021 school year, the maximum number of
 2620  student FTE students participating in the scholarship program
 2621  under this section shall annually increase by 1.0 percent of the
 2622  state’s total public school student FTE student enrollment. A
 2623  student who received a Florida Tax Credit Scholarship or a Hope
 2624  Scholarship in the 2020-2021 school year and who meets the
 2625  eligibility requirements in subsection (3) in the 2021-2022
 2626  school year is eligible for a Family Empowerment Scholarship in
 2627  the 2021-2022 school year. The scholarship may not be included
 2628  in the maximum number of student FTE authorized to participate
 2629  in the program under this paragraph.
 2630         (b) The scholarship amount provided to a student for any
 2631  single school year shall be for tuition and fees for an eligible
 2632  private school, not to exceed annual limits, which shall be
 2633  determined in accordance with this paragraph. The calculated
 2634  scholarship amount for a student participating in the program
 2635  must to attend an eligible private school shall be based upon
 2636  the grade level and school district in which the student was
 2637  assigned as 97.5 95 percent of the funds per unweighted full
 2638  time equivalent in the Florida Education Finance Program for a
 2639  student in the basic program established pursuant to s.
 2640  1011.62(1)(c)1., plus a per-full-time equivalent share of funds
 2641  for all categorical programs, as provided in the General
 2642  Appropriations Act except for the Exceptional Student Education
 2643  Guaranteed Allocation.
 2644         (c) A student who is eligible for a Family Empowerment
 2645  Scholarship is eligible for a transportation award limited to
 2646  $750, if the student is enrolled in a Florida public school that
 2647  is different from the school to which the student was assigned
 2648  pursuant to s. 1002.31 or is enrolled in a lab school as defined
 2649  in s. 1002.32 The amount of the Family Empowerment Scholarship
 2650  shall be the calculated amount or the amount of the private
 2651  school’s tuition and fees, whichever is less. The amount of any
 2652  assessment fee required by the participating private school may
 2653  be paid from the total amount of the scholarship.
 2654         (d) At the time of each Florida Education Finance Program
 2655  student membership survey, the scholarship-funding organization
 2656  shall report to the Department of Education student enrollment,
 2657  FTE, and total award amounts by county, delineated by FEFP
 2658  program, and grade for The school district shall report all
 2659  students who are participating in attending a private school
 2660  under this program. The students attending private schools on
 2661  Family Empowerment Scholarships shall be reported separately
 2662  from other students reported For the purposes of this paragraph,
 2663  an FTE shall be equal to four quarterly scholarship payments the
 2664  Florida Education Finance Program.
 2665         (e) Following notification on July 1, September 1, December
 2666  1, and or February 1 of the number of program participants, the
 2667  department shall transfer, from general revenue funds only, the
 2668  amount calculated pursuant to paragraph (b) to a separate
 2669  account for the scholarship program for quarterly disbursement
 2670  to parents of participating students. For a student exiting a
 2671  Department of Juvenile Justice commitment program who chooses to
 2672  participate in the scholarship program, the amount of the Family
 2673  Empowerment Scholarship calculated pursuant to paragraph (b)
 2674  must be transferred from the school district in which the
 2675  student last attended a public school before commitment to the
 2676  Department of Juvenile Justice. When a student enters the
 2677  scholarship program, the department must receive all
 2678  documentation required for the student’s participation,
 2679  including the private school’s and the student’s fee schedules,
 2680  at least 30 days before the first quarterly scholarship payment
 2681  is made for the student.
 2682         (f) Upon notification from the organization that an
 2683  application has been approved for the program, the department
 2684  shall release the student’s scholarship funds to the
 2685  organization, to be deposited into the student’s account by the
 2686  department that it has received the documentation required under
 2687  paragraph (e), the Chief Financial Officer shall make
 2688  scholarship payments in four equal amounts no later than
 2689  September 1, November 1, February 1, and April 1 of each school
 2690  year in which the scholarship is in force. The initial payment
 2691  shall be made after department verification of admission
 2692  acceptance, and subsequent payments shall be made upon
 2693  verification of continued enrollment and attendance at the
 2694  private school. Payment must be by individual warrant made
 2695  payable to the student’s parent and mailed by the department to
 2696  the private school of the parent’s choice, and the parent shall
 2697  restrictively endorse the warrant to the private school for
 2698  deposit into the account of the private school.
 2699         (g) Accrued interest in the student’s account is in
 2700  addition to, and not part of, the awarded funds. Program funds
 2701  include both the awarded funds and accrued interest Subsequent
 2702  to each scholarship payment, the department shall request from
 2703  the Department of Financial Services a sample of endorsed
 2704  warrants to review and confirm compliance with endorsement
 2705  requirements.
 2706         (h) The organization may develop a system for payment of
 2707  benefits by funds transfer, including, but not limited to, debit
 2708  cards, electronic payment cards, or any other means of payment
 2709  that the department deems to be commercially viable or cost
 2710  effective. A student’s scholarship award may not be reduced for
 2711  debit card or electronic payment fees. Commodities or services
 2712  related to the development of such a system must be procured by
 2713  competitive solicitation unless they are purchased from a state
 2714  term contract pursuant to s. 287.056.
 2715         (i) Moneys received pursuant to this section do not
 2716  constitute taxable income to the qualified student or parent of
 2717  the qualified student.
 2718         (13) OBLIGATIONS OF THE AUDITOR GENERAL.—
 2719         (a) At least once every 3 years, the Auditor General shall
 2720  conduct an operational audit of accounts and records of each
 2721  organization that participates in the program. As part of this
 2722  audit, the Auditor General shall verify, at a minimum, the total
 2723  number of students served and the eligibility of reimbursements
 2724  made by the organization and transmit that information to the
 2725  department. The Auditor General shall provide the commissioner
 2726  with a copy of each annual operational audit performed pursuant
 2727  to this subsection within 10 days after the audit is finalized.
 2728         (b) The Auditor General shall notify the department of any
 2729  organization that fails to comply with a request for
 2730  information.
 2731         (14) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 2732  APPLICATION.—In order to participate in the scholarship program
 2733  created under this section, a charitable organization that seeks
 2734  to be a nonprofit scholarship-funding organization shall submit
 2735  an application for initial approval or renewal to the Office of
 2736  Independent Education and Parental Choice no later than
 2737  September 1 of each year before the school year for which the
 2738  organization intends to offer scholarships.
 2739         (a) An application for initial approval must include:
 2740         1. A copy of the organization’s incorporation documents and
 2741  registration with the Division of Corporations of the Department
 2742  of State.
 2743         2. A copy of the organization’s Internal Revenue Service
 2744  determination letter as an s. 501(c)(3) not-for-profit
 2745  organization.
 2746         3. A description of the organization’s financial plan that
 2747  demonstrates sufficient funds to operate throughout the school
 2748  year.
 2749         4. A description of the geographic region that the
 2750  organization intends to serve and an analysis of the demand and
 2751  unmet need for eligible students in that area.
 2752         5. The organization’s organizational chart.
 2753         6. A description of the criteria and methodology that the
 2754  organization will use to evaluate scholarship eligibility.
 2755         7. A description of the application process, including
 2756  deadlines and any associated fees.
 2757         8. A description of the deadlines for attendance
 2758  verification and scholarship payments.
 2759         9. A copy of the organization’s policies on conflict of
 2760  interest and whistleblowers.
 2761         10. A copy of a surety bond or letter of credit to secure
 2762  the faithful performance of the obligations of the eligible
 2763  nonprofit scholarship-funding organization in accordance with
 2764  this section in an amount equal to 25 percent of the scholarship
 2765  funds anticipated for each school year or $100,000, whichever is
 2766  greater. The surety bond or letter of credit must specify that
 2767  any claim against the bond or letter of credit may be made only
 2768  by an eligible nonprofit scholarship-funding organization to
 2769  provide scholarships to and on behalf of students who would have
 2770  had scholarships funded if it were not for the diversion of
 2771  funds giving rise to the claim against the bond or letter of
 2772  credit.
 2773         (b) In addition to the information required by
 2774  subparagraphs (a)1.-10., an application for renewal must
 2775  include:
 2776         1. A surety bond or letter of credit to secure the faithful
 2777  performance of the obligations of the eligible nonprofit
 2778  scholarship-funding organization in accordance with this section
 2779  equal to the amount of undisbursed donations held by the
 2780  organization based on the annual report submitted pursuant to
 2781  paragraph (11)(r). The amount of the surety bond or letter of
 2782  credit must be at least $100,000, but not more than $25 million.
 2783  The surety bond or letter of credit must specify that any claim
 2784  against the bond or letter of credit may be made only by an
 2785  eligible nonprofit scholarship-funding organization to provide
 2786  scholarships to and on behalf of students who would have had
 2787  scholarships funded if it were not for the diversion of funds
 2788  giving rise to the claim against the bond or letter of credit.
 2789         2. The organization’s completed Internal Revenue Service
 2790  Form 990 submitted no later than November 30 of the year before
 2791  the school year that the organization intends to offer the
 2792  scholarships, notwithstanding the September 1 application
 2793  deadline.
 2794         3. A copy of the statutorily required audit to the
 2795  Department of Education and Auditor General.
 2796         4. An annual report that includes:
 2797         a. The number of students who completed applications, by
 2798  county and by grade.
 2799         b. The number of students who were approved for
 2800  scholarships, by county and by grade.
 2801         c. The number of students who received funding for
 2802  scholarships within each funding category, by county and by
 2803  grade.
 2804         d. The amount of funds received, the amount of funds
 2805  distributed in scholarships, and an accounting of remaining
 2806  funds and the obligation of those funds.
 2807         e. A detailed accounting of how the organization spent the
 2808  administrative funds allowable under paragraph (11)(k).
 2809         (c) In consultation with the Department of Revenue and the
 2810  Chief Financial Officer, the Office of Independent Education and
 2811  Parental Choice shall review the application. The Department of
 2812  Education shall notify the organization in writing of any
 2813  deficiencies within 30 days after receipt of the application and
 2814  allow the organization 30 days to correct any deficiencies.
 2815         (d) Within 30 days after receipt of the finalized
 2816  application by the Office of Independent Education and Parental
 2817  Choice, the Commissioner of Education shall recommend approval
 2818  or disapproval of the application to the State Board of
 2819  Education. The State Board of Education shall consider the
 2820  application and recommendation at the next scheduled meeting,
 2821  adhering to appropriate meeting notice requirements. If the
 2822  State Board of Education disapproves the organization’s
 2823  application, it shall provide the organization with a written
 2824  explanation of that determination. The State Board of
 2825  Education’s action is not subject to chapter 120.
 2826         (e) If the State Board of Education disapproves the renewal
 2827  of a nonprofit scholarship-funding organization, the
 2828  organization must notify the affected eligible students and
 2829  parents of the decision within 15 days after disapproval. An
 2830  eligible student affected by the disapproval of an
 2831  organization’s participation remains eligible under this section
 2832  until the end of the school year in which the organization was
 2833  disapproved. The student must apply and be accepted by another
 2834  eligible nonprofit scholarship-funding organization for the
 2835  upcoming school year. The student must be given priority in
 2836  accordance with paragraph (3)(d).
 2837         (f) All remaining eligible student accounts with funds held
 2838  by a nonprofit scholarship-funding organization that is
 2839  disapproved for participation must be transferred to the
 2840  student’s account established at the eligible nonprofit
 2841  scholarship-funding organization accepting the student. All
 2842  transferred funds must be deposited by each eligible nonprofit
 2843  scholarship-funding organization receiving such funds into the
 2844  student’s scholarship account. All other remaining funds must be
 2845  transferred to the department. All transferred amounts received
 2846  by any eligible nonprofit scholarship-funding organization must
 2847  be separately disclosed in the annual financial audit required
 2848  under subsection (11).
 2849         (g) A nonprofit scholarship-funding organization is a
 2850  renewing organization if it maintains continuous approval and
 2851  participation in the program. An organization that chooses not
 2852  to participate for 1 year or more or is disapproved to
 2853  participate for 1 year or more must submit an application for
 2854  initial approval in order to participate in the program again.
 2855         (h) The State Board of Education shall adopt rules
 2856  providing guidelines for receiving, reviewing, and approving
 2857  applications for new and renewing nonprofit scholarship-funding
 2858  organizations. The rules must include a process for compiling
 2859  input and recommendations from the Chief Financial Officer, the
 2860  Department of Revenue, and the Department of Education. The
 2861  rules must also require that the nonprofit scholarship-funding
 2862  organization make a brief presentation to assist the State Board
 2863  of Education in its decision.
 2864         (i) A state university or an independent college or
 2865  university that is eligible to participate in the William L.
 2866  Boyd, IV, Effective Access to Student Education Grant Program,
 2867  is located and chartered in this state, is not for profit, and
 2868  is accredited by the Commission on Colleges of the Southern
 2869  Association of Colleges and Schools is exempt from the initial
 2870  or renewal application process, but must file a registration
 2871  notice with the Department of Education to be an eligible
 2872  nonprofit scholarship-funding organization. The State Board of
 2873  Education shall adopt rules that identify the procedure for
 2874  filing the registration notice with the department. The rules
 2875  must identify appropriate reporting requirements for fiscal,
 2876  programmatic, and performance accountability purposes consistent
 2877  with this section, but may not exceed the requirements for
 2878  eligible nonprofit scholarship-funding organizations for
 2879  charitable organizations.
 2880         (15)(12) LIABILITY.—No liability shall arise on the part of
 2881  the state based on the award or use of a Family Empowerment
 2882  Scholarship.
 2883         (16)(13) SCOPE OF AUTHORITY.—The inclusion of eligible
 2884  private schools and private providers within the options
 2885  available to Florida public school students does not expand the
 2886  regulatory authority of the state, its officers, or any school
 2887  district to impose any additional regulation of private schools
 2888  beyond those reasonably necessary to enforce requirements
 2889  expressly set forth in this section.
 2890         (17)(14) RULES.—The State Board of Education shall adopt
 2891  rules pursuant to ss. 120.536(1) and 120.54 to administer this
 2892  section. The state board rules must include a requirement that
 2893  the department work collaboratively with an approved
 2894  scholarship-funding organization to expedite the process for the
 2895  verification and reporting obligations specified under
 2896  subsection (11) (10).
 2897         (15) IMPLEMENTATION SCHEDULE FOR THE 2019-2020 SCHOOL
 2898  YEAR.—Notwithstanding the provisions of this section related to
 2899  notification requirements and eligibility timelines, for the
 2900  2019-2020 school year:
 2901         (a) A student is eligible for a Family Empowerment
 2902  Scholarship under this section if the student’s parent has
 2903  obtained acceptance of the student’s admission to a private
 2904  school that is eligible for the program under subsection (8),
 2905  and the parent has requested a scholarship from the Department
 2906  of Education no later than August 15, 2019. The request must be
 2907  communicated directly to the department in a manner that creates
 2908  a written or electronic record of the request and the date of
 2909  receipt of the request.
 2910         (b) The department shall expedite the publication of
 2911  information relevant to the Family Empowerment Scholarship
 2912  Program on the department’s website, including, but not limited
 2913  to, the eligibility criteria for students to qualify for the
 2914  scholarship under this section and how parents may request the
 2915  scholarship. The department must immediately notify the school
 2916  district of the parent’s intent upon receipt of the parent’s
 2917  request.
 2918         (c) Upon notification by the department that it has
 2919  received the documentation required under paragraph (10)(a), the
 2920  Chief Financial Officer shall make the first quarter payment of
 2921  scholarships no later than October 1, 2019.
 2922  
 2923  This subsection shall expire June 30, 2020.
 2924         Section 20. Section 1002.395, Florida Statutes, is amended
 2925  to read:
 2926         1002.395 Florida K-12 Education Funding Tax Credit
 2927  Scholarship Program.—
 2928         (1) FINDINGS AND PURPOSE.—
 2929         (a) The Legislature finds that:
 2930         1. It has the inherent power to determine subjects of
 2931  taxation for general or particular public purposes.
 2932         2. Expanding educational opportunities and improving the
 2933  quality of educational services within the state are valid
 2934  public purposes that the Legislature may promote using its
 2935  sovereign power to determine subjects of taxation and exemptions
 2936  from taxation.
 2937         3. Ensuring that all parents, regardless of means, may
 2938  exercise and enjoy their basic right to educate their children
 2939  as they see fit is a valid public purpose that the Legislature
 2940  may promote using its sovereign power to determine subjects of
 2941  taxation and exemptions from taxation.
 2942         4. Expanding educational opportunities and the healthy
 2943  competition they promote are critical to improving the quality
 2944  of education in the state and to ensuring that all children
 2945  receive the high-quality education to which they are entitled.
 2946         (b) The purpose of this section is to:
 2947         1. Enable taxpayers to designate portions of certain tax
 2948  payments as make private, voluntary contributions to K-12
 2949  education funding to nonprofit scholarship-funding organizations
 2950  in order to promote the general welfare.
 2951         2. Provide taxpayers who wish to help parents with limited
 2952  resources exercise their basic right to educate their children
 2953  as they see fit with a means to do so.
 2954         3. Promote the general welfare by expanding educational
 2955  opportunities for children of families that have limited
 2956  financial resources.
 2957         4. Enable children in this state to achieve a greater level
 2958  of excellence in their education.
 2959         5. Improve the quality of education in this state, both by
 2960  expanding educational opportunities for children and by creating
 2961  incentives for schools to achieve excellence.
 2962         (c) The purpose of this section is not to prescribe the
 2963  standards or curriculum for private schools. A private school
 2964  retains the authority to determine its own standards and
 2965  curriculum.
 2966         (2) DEFINITIONS.—As used in this section, the term:
 2967         (a) “Annual tax credit amount” means, for any state fiscal
 2968  year, the sum of the amount of tax credits approved under
 2969  paragraph (5)(b), including tax credits to be taken under s.
 2970  220.1875 or s. 624.51055, which are approved for a taxpayer
 2971  whose taxable year begins on or after January 1 of the calendar
 2972  year preceding the start of the applicable state fiscal year.
 2973         (b) “Department” means the Department of Revenue.
 2974         (c) “Direct certification list” means the certified list of
 2975  children who qualify for the food assistance program, the
 2976  Temporary Assistance to Needy Families Program, or the Food
 2977  Distribution Program on Indian Reservations provided to the
 2978  Department of Education by the Department of Children and
 2979  Families.
 2980         (b)(d) “Division” means the Division of Alcoholic Beverages
 2981  and Tobacco of the Department of Business and Professional
 2982  Regulation.
 2983         (c)(e) “Eligible contribution” means the taxes, or a
 2984  portion thereof, remitted by the taxpayer to the department or
 2985  the division which the taxpayer elects to designate for K-12
 2986  education funding a monetary contribution from a taxpayer,
 2987  subject to the restrictions provided in this section, to an
 2988  eligible nonprofit scholarship-funding organization. The
 2989  taxpayer making the contribution may not designate a specific
 2990  child as the beneficiary of the contribution.
 2991         (f) “Eligible nonprofit scholarship-funding organization”
 2992  means a state university; or an independent college or
 2993  university that is eligible to participate in the William L.
 2994  Boyd, IV, Effective Access to Student Education Grant Program,
 2995  located and chartered in this state, is not for profit, and is
 2996  accredited by the Commission on Colleges of the Southern
 2997  Association of Colleges and Schools; or is a charitable
 2998  organization that:
 2999         1. Is exempt from federal income tax pursuant to s.
 3000  501(c)(3) of the Internal Revenue Code;
 3001         2. Is a Florida entity formed under chapter 605, chapter
 3002  607, or chapter 617 and whose principal office is located in the
 3003  state; and
 3004         3. Complies with subsections (6) and (15).
 3005         (g) “Eligible private school” means a private school, as
 3006  defined in s. 1002.01(2), located in Florida which offers an
 3007  education to students in any grades K-12 and that meets the
 3008  requirements in subsection (8).
 3009         (h) “Household income” has the same meaning as the term
 3010  “income” as defined in the Income Eligibility Guidelines for
 3011  free and reduced price meals under the National School Lunch
 3012  Program in 7 C.F.R. part 210 as published in the Federal
 3013  Register by the United States Department of Agriculture.
 3014         (i) “Owner or operator” includes:
 3015         1. An owner, president, officer, or director of an eligible
 3016  nonprofit scholarship-funding organization or a person with
 3017  equivalent decisionmaking authority over an eligible nonprofit
 3018  scholarship-funding organization.
 3019         2. An owner, operator, superintendent, or principal of an
 3020  eligible private school or a person with equivalent
 3021  decisionmaking authority over an eligible private school.
 3022         (j) “Tax credit cap amount” means the maximum annual tax
 3023  credit amount that the department may approve for a state fiscal
 3024  year.
 3025         (k) “Unweighted FTE funding amount” means the statewide
 3026  average total funds per unweighted full-time equivalent funding
 3027  amount that is incorporated by reference in the General
 3028  Appropriations Act, or any subsequent special appropriations
 3029  act, for the applicable state fiscal year.
 3030         (3) PROGRAM; INITIAL SCHOLARSHIP ELIGIBILITY.—
 3031         (a) The Florida Tax Credit Scholarship Program is
 3032  established.
 3033         (b) A student is eligible for a Florida tax credit
 3034  scholarship under this section if the student meets one or more
 3035  of the following criteria:
 3036         1. The student is on the direct certification list or the
 3037  student’s household income level does not exceed 260 percent of
 3038  the federal poverty level; or
 3039         2. The student is currently placed, or during the previous
 3040  state fiscal year was placed, in foster care or in out-of-home
 3041  care as defined in s. 39.01.
 3042  
 3043  Priority must be given to a student whose household income level
 3044  does not exceed 185 percent of the federal poverty level or who
 3045  is in foster care or out-of-home care. A student who initially
 3046  receives a scholarship based on eligibility under this paragraph
 3047  remains eligible to participate until he or she graduates from
 3048  high school or attains the age of 21 years, whichever occurs
 3049  first, regardless of the student’s household income level. A
 3050  sibling of a student who is participating in the scholarship
 3051  program under this subsection is eligible for a scholarship if
 3052  the student resides in the same household as the sibling.
 3053         (4) SCHOLARSHIP PROHIBITIONS.—A student is not eligible for
 3054  a scholarship while he or she is:
 3055         (a) Enrolled in a school operating for the purpose of
 3056  providing educational services to youth in Department of
 3057  Juvenile Justice commitment programs;
 3058         (b) Receiving a scholarship from another eligible nonprofit
 3059  scholarship-funding organization under this section;
 3060         (c) Receiving an educational scholarship pursuant to
 3061  chapter 1002;
 3062         (d) Participating in a home education program as defined in
 3063  s. 1002.01(1);
 3064         (e) Participating in a private tutoring program pursuant to
 3065  s. 1002.43;
 3066         (f) Participating in a virtual school, correspondence
 3067  school, or distance learning program that receives state funding
 3068  pursuant to the student’s participation unless the participation
 3069  is limited to no more than two courses per school year; or
 3070         (g) Enrolled in the Florida School for the Deaf and the
 3071  Blind.
 3072         (5)K-12 EDUCATION SCHOLARSHIP FUNDING TAX CREDITS;
 3073  LIMITATIONS.—
 3074         (a)1. The tax credit cap amount is $229 million in the
 3075  2012-2013 state fiscal year.
 3076         2. In the 2013-2014 state fiscal year and each state fiscal
 3077  year thereafter, the tax credit cap amount is the tax credit cap
 3078  amount in the prior state fiscal year. However, in any state
 3079  fiscal year when the annual tax credit amount for the prior
 3080  state fiscal year is equal to or greater than 90 percent of the
 3081  tax credit cap amount applicable to that state fiscal year, the
 3082  tax credit cap amount shall increase by 25 percent. The
 3083  Department of Education and Department of Revenue shall publish
 3084  on their websites information identifying the tax credit cap
 3085  amount when it is increased pursuant to this subparagraph.
 3086         (a)(b) A taxpayer may elect to make eligible contributions
 3087  submit an application to the department or the division for a
 3088  tax credit or credits under one or more of s. 211.0251, s.
 3089  212.1831, s. 220.1875, s. 561.1211, or s. 624.51055. For
 3090  elections related to taxes imposed under chapter 211, chapter
 3091  212, or chapter 561, the taxpayer shall make the election on a
 3092  return filed with the department or the division. For elections
 3093  related to taxes imposed under chapter 200 or chapter 624, the
 3094  taxpayer shall make the election when making the estimated
 3095  payment.
 3096         (b) The taxpayer shall specify the amount of the eligible
 3097  contribution, which amount may not exceed:
 3098         1.For elections under s. 211.0251, 50 percent of the tax
 3099  due on the return on which the election is made.
 3100         2.For elections under s. 212.1831, 100 percent of the tax
 3101  due on the return on which the election is made.
 3102         3.For elections under s. 220.1875, 25 percent of the final
 3103  tax liability shown on the taxpayer’s Florida Corporate Income
 3104  Tax Return for the prior taxable year.
 3105         4.For elections under s. 561.1211, 90 percent of the tax
 3106  due on the return on which the election is made.
 3107         5.For elections under s. 624.51055, 33 percent of the tax
 3108  due for the prior taxable year under s. 624.509(1) after
 3109  deducting from such tax the prior year’s deductions for
 3110  assessments made pursuant to s. 440.51; credits for taxes paid
 3111  under ss. 175.101 and 185.08; credits for income taxes paid
 3112  under chapter 220; and the credit allowed under s. 624.509(5),
 3113  as such credit is limited by s. 624.509(6).
 3114         1. The taxpayer shall specify in the application each tax
 3115  for which the taxpayer requests a credit and the applicable
 3116  taxable year for a credit under s. 220.1875 or s. 624.51055 or
 3117  the applicable state fiscal year for a credit under s. 211.0251,
 3118  s. 212.1831, or s. 561.1211. For purposes of s. 220.1875, a
 3119  taxpayer may apply for a credit to be used for a prior taxable
 3120  year before the date the taxpayer is required to file a return
 3121  for that year pursuant to s. 220.222. For purposes of s.
 3122  624.51055, a taxpayer may apply for a credit to be used for a
 3123  prior taxable year before the date the taxpayer is required to
 3124  file a return for that prior taxable year pursuant to ss.
 3125  624.509 and 624.5092. The department shall approve tax credits
 3126  on a first-come, first-served basis and must obtain the
 3127  division’s approval before approving a tax credit under s.
 3128  561.1211.
 3129         2. Within 10 days after approving or denying an
 3130  application, the department shall provide a copy of its approval
 3131  or denial letter to the eligible nonprofit scholarship-funding
 3132  organization specified by the taxpayer in the application.
 3133         (c) If a tax credit approved under paragraph (b) is not
 3134  fully used within the specified state fiscal year for credits
 3135  under s. 211.0251, s. 212.1831, or s. 561.1211 or against taxes
 3136  due for the specified taxable year for credits under s. 220.1875
 3137  or s. 624.51055 because of insufficient tax liability on the
 3138  part of the taxpayer, the unused amount shall be carried forward
 3139  for a period not to exceed 10 years. For purposes of s.
 3140  220.1875, a credit carried forward may be used in a subsequent
 3141  year after applying the other credits and unused carryovers in
 3142  the order provided in s. 220.02(8).
 3143         (d) A taxpayer may not convey, assign, or transfer an
 3144  approved tax credit or a carryforward tax credit to another
 3145  entity unless all of the assets of the taxpayer are conveyed,
 3146  assigned, or transferred in the same transaction. However, a tax
 3147  credit under s. 211.0251, s. 212.1831, s. 220.1875, s. 561.1211,
 3148  or s. 624.51055 may be conveyed, transferred, or assigned
 3149  between members of an affiliated group of corporations if the
 3150  type of tax credit under s. 211.0251, s. 212.1831, s. 220.1875,
 3151  s. 561.1211, or s. 624.51055 remains the same. A taxpayer shall
 3152  notify the department of its intent to convey, transfer, or
 3153  assign a tax credit to another member within an affiliated group
 3154  of corporations. The amount conveyed, transferred, or assigned
 3155  is available to another member of the affiliated group of
 3156  corporations upon approval by the department. The department
 3157  shall obtain the division’s approval before approving a
 3158  conveyance, transfer, or assignment of a tax credit under s.
 3159  561.1211.
 3160         (e) Within any state fiscal year, a taxpayer may rescind
 3161  all or part of a tax credit approved under paragraph (b). The
 3162  amount rescinded shall become available for that state fiscal
 3163  year to another eligible taxpayer as approved by the department
 3164  if the taxpayer receives notice from the department that the
 3165  rescindment has been accepted by the department. The department
 3166  must obtain the division’s approval prior to accepting the
 3167  rescindment of a tax credit under s. 561.1211. Any amount
 3168  rescinded under this paragraph shall become available to an
 3169  eligible taxpayer on a first-come, first-served basis based on
 3170  tax credit applications received after the date the rescindment
 3171  is accepted by the department.
 3172         (f) Within 10 days after approving or denying the
 3173  conveyance, transfer, or assignment of a tax credit under
 3174  paragraph (d), or the rescindment of a tax credit under
 3175  paragraph (e), the department shall provide a copy of its
 3176  approval or denial letter to the eligible nonprofit scholarship
 3177  funding organization specified by the taxpayer. The department
 3178  shall also include the eligible nonprofit scholarship-funding
 3179  organization specified by the taxpayer on all letters or
 3180  correspondence of acknowledgment for tax credits under s.
 3181  212.1831.
 3182         (g) For purposes of calculating the underpayment of
 3183  estimated corporate income taxes pursuant to s. 220.34 and tax
 3184  installment payments for taxes on insurance premiums or
 3185  assessments under s. 624.5092, the final amount due is the
 3186  amount after credits earned under s. 220.1875 or s. 624.51055
 3187  for contributions to eligible nonprofit scholarship-funding
 3188  organizations are deducted.
 3189         1. For purposes of determining if a penalty or interest
 3190  shall be imposed for underpayment of estimated corporate income
 3191  tax pursuant to s. 220.34(2)(d)1., a taxpayer may, after earning
 3192  a credit under s. 220.1875, reduce any estimated payment in that
 3193  taxable year by the amount of the credit. This subparagraph
 3194  applies to contributions made on or after July 1, 2014.
 3195         2. For purposes of determining if a penalty under s.
 3196  624.5092 shall be imposed, an insurer, after earning a credit
 3197  under s. 624.51055 for a taxable year, may reduce any
 3198  installment payment for such taxable year of 27 percent of the
 3199  amount of the net tax due as reported on the return for the
 3200  preceding year under s. 624.5092(2)(b) by the amount of the
 3201  credit. This subparagraph applies to contributions made on or
 3202  after July 1, 2014.
 3203         (6) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
 3204  ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 3205  organization:
 3206         (a) Must comply with the antidiscrimination provisions of
 3207  42 U.S.C. s. 2000d.
 3208         (b) Must comply with the following background check
 3209  requirements:
 3210         1. All owners and operators as defined in subparagraph
 3211  (2)(i)1. are, before employment or engagement to provide
 3212  services, subject to level 2 background screening as provided
 3213  under chapter 435. The fingerprints for the background screening
 3214  must be electronically submitted to the Department of Law
 3215  Enforcement and can be taken by an authorized law enforcement
 3216  agency or by an employee of the eligible nonprofit scholarship
 3217  funding organization or a private company who is trained to take
 3218  fingerprints. However, the complete set of fingerprints of an
 3219  owner or operator may not be taken by the owner or operator. The
 3220  results of the state and national criminal history check shall
 3221  be provided to the Department of Education for screening under
 3222  chapter 435. The cost of the background screening may be borne
 3223  by the eligible nonprofit scholarship-funding organization or
 3224  the owner or operator.
 3225         2. Every 5 years following employment or engagement to
 3226  provide services or association with an eligible nonprofit
 3227  scholarship-funding organization, each owner or operator must
 3228  meet level 2 screening standards as described in s. 435.04, at
 3229  which time the nonprofit scholarship-funding organization shall
 3230  request the Department of Law Enforcement to forward the
 3231  fingerprints to the Federal Bureau of Investigation for level 2
 3232  screening. If the fingerprints of an owner or operator are not
 3233  retained by the Department of Law Enforcement under subparagraph
 3234  3., the owner or operator must electronically file a complete
 3235  set of fingerprints with the Department of Law Enforcement. Upon
 3236  submission of fingerprints for this purpose, the eligible
 3237  nonprofit scholarship-funding organization shall request that
 3238  the Department of Law Enforcement forward the fingerprints to
 3239  the Federal Bureau of Investigation for level 2 screening, and
 3240  the fingerprints shall be retained by the Department of Law
 3241  Enforcement under subparagraph 3.
 3242         3. Fingerprints submitted to the Department of Law
 3243  Enforcement as required by this paragraph must be retained by
 3244  the Department of Law Enforcement in a manner approved by rule
 3245  and entered in the statewide automated biometric identification
 3246  system authorized by s. 943.05(2)(b). The fingerprints must
 3247  thereafter be available for all purposes and uses authorized for
 3248  arrest fingerprints entered in the statewide automated biometric
 3249  identification system pursuant to s. 943.051.
 3250         4. The Department of Law Enforcement shall search all
 3251  arrest fingerprints received under s. 943.051 against the
 3252  fingerprints retained in the statewide automated biometric
 3253  identification system under subparagraph 3. Any arrest record
 3254  that is identified with an owner’s or operator’s fingerprints
 3255  must be reported to the Department of Education. The Department
 3256  of Education shall participate in this search process by paying
 3257  an annual fee to the Department of Law Enforcement and by
 3258  informing the Department of Law Enforcement of any change in the
 3259  employment, engagement, or association status of the owners or
 3260  operators whose fingerprints are retained under subparagraph 3.
 3261  The Department of Law Enforcement shall adopt a rule setting the
 3262  amount of the annual fee to be imposed upon the Department of
 3263  Education for performing these services and establishing the
 3264  procedures for the retention of owner and operator fingerprints
 3265  and the dissemination of search results. The fee may be borne by
 3266  the owner or operator of the nonprofit scholarship-funding
 3267  organization.
 3268         5. A nonprofit scholarship-funding organization whose owner
 3269  or operator fails the level 2 background screening is not
 3270  eligible to provide scholarships under this section.
 3271         6. A nonprofit scholarship-funding organization whose owner
 3272  or operator in the last 7 years has filed for personal
 3273  bankruptcy or corporate bankruptcy in a corporation of which he
 3274  or she owned more than 20 percent shall not be eligible to
 3275  provide scholarships under this section.
 3276         7. In addition to the offenses listed in s. 435.04, a
 3277  person required to undergo background screening pursuant to this
 3278  part or authorizing statutes must not have an arrest awaiting
 3279  final disposition for, must not have been found guilty of, or
 3280  entered a plea of nolo contendere to, regardless of
 3281  adjudication, and must not have been adjudicated delinquent, and
 3282  the record must not have been sealed or expunged for, any of the
 3283  following offenses or any similar offense of another
 3284  jurisdiction:
 3285         a. Any authorizing statutes, if the offense was a felony.
 3286         b. This chapter, if the offense was a felony.
 3287         c. Section 409.920, relating to Medicaid provider fraud.
 3288         d. Section 409.9201, relating to Medicaid fraud.
 3289         e. Section 741.28, relating to domestic violence.
 3290         f. Section 817.034, relating to fraudulent acts through
 3291  mail, wire, radio, electromagnetic, photoelectronic, or
 3292  photooptical systems.
 3293         g. Section 817.234, relating to false and fraudulent
 3294  insurance claims.
 3295         h. Section 817.505, relating to patient brokering.
 3296         i. Section 817.568, relating to criminal use of personal
 3297  identification information.
 3298         j. Section 817.60, relating to obtaining a credit card
 3299  through fraudulent means.
 3300         k. Section 817.61, relating to fraudulent use of credit
 3301  cards, if the offense was a felony.
 3302         l. Section 831.01, relating to forgery.
 3303         m. Section 831.02, relating to uttering forged instruments.
 3304         n. Section 831.07, relating to forging bank bills, checks,
 3305  drafts, or promissory notes.
 3306         o. Section 831.09, relating to uttering forged bank bills,
 3307  checks, drafts, or promissory notes.
 3308         p. Section 831.30, relating to fraud in obtaining medicinal
 3309  drugs.
 3310         q. Section 831.31, relating to the sale, manufacture,
 3311  delivery, or possession with the intent to sell, manufacture, or
 3312  deliver any counterfeit controlled substance, if the offense was
 3313  a felony.
 3314         (c) Must not have an owner or operator who owns or operates
 3315  an eligible private school that is participating in the
 3316  scholarship program.
 3317         (d) Must provide scholarships, from eligible contributions,
 3318  to eligible students for the cost of:
 3319         1. Tuition and fees for an eligible private school; or
 3320         2. Transportation to a Florida public school in which a
 3321  student is enrolled and that is different from the school to
 3322  which the student was assigned or to a lab school as defined in
 3323  s. 1002.32.
 3324         (e) Must give first priority to eligible renewal students
 3325  who received a scholarship from an eligible nonprofit
 3326  scholarship-funding organization or from the State of Florida
 3327  during the previous school year. The eligible nonprofit
 3328  scholarship-funding organization must fully apply and exhaust
 3329  all funds available under this section and s. 1002.40(11)(i) for
 3330  renewal scholarship awards before awarding any initial
 3331  scholarships.
 3332         (f) Must provide a renewal or initial scholarship to an
 3333  eligible student on a first-come, first-served basis unless the
 3334  student qualifies for priority pursuant to paragraph (e). Each
 3335  eligible nonprofit scholarship-funding organization must refer
 3336  any student eligible for a scholarship pursuant to this section
 3337  who did not receive a renewal or initial scholarship based
 3338  solely on the lack of available funds under this section and s.
 3339  1002.40(11)(i) to another eligible nonprofit scholarship-funding
 3340  organization that may have funds available.
 3341         (g) May not restrict or reserve scholarships for use at a
 3342  particular private school or provide scholarships to a child of
 3343  an owner or operator.
 3344         (h) Must allow a student in foster care or out-of-home care
 3345  or a dependent child of a parent who is a member of the United
 3346  States Armed Forces to apply for a scholarship at any time.
 3347         (i) Must allow an eligible student to attend any eligible
 3348  private school and must allow a parent to transfer a scholarship
 3349  during a school year to any other eligible private school of the
 3350  parent’s choice.
 3351         (j)1. May use eligible contributions received pursuant to
 3352  this section and ss. 212.099, 212.1832, and 1002.40 during the
 3353  state fiscal year in which such contributions are collected for
 3354  administrative expenses if the organization has operated as an
 3355  eligible nonprofit scholarship-funding organization for at least
 3356  the preceding 3 fiscal years and did not have any findings of
 3357  material weakness or material noncompliance in its most recent
 3358  audit under paragraph (m). Administrative expenses from eligible
 3359  contributions may not exceed 3 percent of the total amount of
 3360  all scholarships awarded by an eligible scholarship-funding
 3361  organization under this chapter. Such administrative expenses
 3362  must be reasonable and necessary for the organization’s
 3363  management and distribution of scholarships awarded under this
 3364  chapter. No funds authorized under this subparagraph shall be
 3365  used for lobbying or political activity or expenses related to
 3366  lobbying or political activity. Up to one-third of the funds
 3367  authorized for administrative expenses under this subparagraph
 3368  may be used for expenses related to the recruitment of
 3369  contributions from taxpayers. An eligible nonprofit scholarship
 3370  funding organization may not charge an application fee.
 3371         2. Must expend for annual or partial-year scholarships an
 3372  amount equal to or greater than 75 percent of the net eligible
 3373  contributions remaining after administrative expenses during the
 3374  state fiscal year in which such contributions are collected. No
 3375  more than 25 percent of such net eligible contributions may be
 3376  carried forward to the following state fiscal year. All amounts
 3377  carried forward, for audit purposes, must be specifically
 3378  identified for particular students, by student name and the name
 3379  of the school to which the student is admitted, subject to the
 3380  requirements of ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g,
 3381  and the applicable rules and regulations issued pursuant
 3382  thereto. Any amounts carried forward shall be expended for
 3383  annual or partial-year scholarships in the following state
 3384  fiscal year. No later than September 30 of each year, net
 3385  eligible contributions remaining on June 30 of each year that
 3386  are in excess of the 25 percent that may be carried forward
 3387  shall be used to provide scholarships to eligible students or
 3388  transferred to other eligible nonprofit scholarship-funding
 3389  organizations to provide scholarships for eligible students. All
 3390  transferred funds must be deposited by each eligible nonprofit
 3391  scholarship-funding organization receiving such funds into its
 3392  scholarship account. All transferred amounts received by any
 3393  eligible nonprofit scholarship-funding organization must be
 3394  separately disclosed in the annual financial audit required
 3395  under paragraph (m).
 3396         3. Must, before granting a scholarship for an academic
 3397  year, document each scholarship student’s eligibility for that
 3398  academic year. A scholarship-funding organization may not grant
 3399  multiyear scholarships in one approval process.
 3400         (k) Must maintain separate accounts for scholarship funds
 3401  and operating funds.
 3402         (l) With the prior approval of the Department of Education,
 3403  may transfer funds to another eligible nonprofit scholarship
 3404  funding organization if additional funds are required to meet
 3405  scholarship demand at the receiving nonprofit scholarship
 3406  funding organization. A transfer is limited to the greater of
 3407  $500,000 or 20 percent of the total contributions received by
 3408  the nonprofit scholarship-funding organization making the
 3409  transfer. All transferred funds must be deposited by the
 3410  receiving nonprofit scholarship-funding organization into its
 3411  scholarship accounts. All transferred amounts received by any
 3412  nonprofit scholarship-funding organization must be separately
 3413  disclosed in the annual financial and compliance audit required
 3414  in this section.
 3415         (m) Must provide to the Auditor General and the Department
 3416  of Education a report on the results of an annual financial
 3417  audit of its accounts and records conducted by an independent
 3418  certified public accountant in accordance with auditing
 3419  standards generally accepted in the United States, government
 3420  auditing standards, and rules promulgated by the Auditor
 3421  General. The audit report must include a report on financial
 3422  statements presented in accordance with generally accepted
 3423  accounting principles. Audit reports must be provided to the
 3424  Auditor General and the Department of Education within 180 days
 3425  after completion of the eligible nonprofit scholarship-funding
 3426  organization’s fiscal year. The Auditor General shall review all
 3427  audit reports submitted pursuant to this paragraph. The Auditor
 3428  General shall request any significant items that were omitted in
 3429  violation of a rule adopted by the Auditor General. The items
 3430  must be provided within 45 days after the date of the request.
 3431  If the scholarship-funding organization does not comply with the
 3432  Auditor General’s request, the Auditor General shall notify the
 3433  Legislative Auditing Committee.
 3434         (n) Must prepare and submit quarterly reports to the
 3435  Department of Education pursuant to paragraph (9)(i). In
 3436  addition, an eligible nonprofit scholarship-funding organization
 3437  must submit in a timely manner any information requested by the
 3438  Department of Education relating to the scholarship program.
 3439         (o)1.a. Must participate in the joint development of
 3440  agreed-upon procedures during the 2009-2010 state fiscal year.
 3441  The agreed-upon procedures must uniformly apply to all private
 3442  schools and must determine, at a minimum, whether the private
 3443  school has been verified as eligible by the Department of
 3444  Education under s. 1002.421; has an adequate accounting system,
 3445  system of financial controls, and process for deposit and
 3446  classification of scholarship funds; and has properly expended
 3447  scholarship funds for education-related expenses. During the
 3448  development of the procedures, the participating scholarship
 3449  funding organizations shall specify guidelines governing the
 3450  materiality of exceptions that may be found during the
 3451  accountant’s performance of the procedures. The procedures and
 3452  guidelines shall be provided to private schools and the
 3453  Commissioner of Education by March 15, 2011.
 3454         b. Must participate in a joint review of the agreed-upon
 3455  procedures and guidelines developed under sub-subparagraph a.,
 3456  by February of each biennium, if the scholarship-funding
 3457  organization provided more than $250,000 in scholarship funds to
 3458  an eligible private school under this chapter during the state
 3459  fiscal year preceding the biennial review. If the procedures and
 3460  guidelines are revised, the revisions must be provided to
 3461  private schools and the Commissioner of Education by March 15 of
 3462  the year in which the revisions were completed. The revised
 3463  agreed-upon procedures shall take effect the subsequent school
 3464  year. For the 2018-2019 school year only, the joint review of
 3465  the agreed-upon procedures must be completed and the revisions
 3466  submitted to the commissioner no later than September 15, 2018.
 3467  The revised procedures are applicable to the 2018-2019 school
 3468  year.
 3469         c. Must monitor the compliance of a private school with s.
 3470  1002.421(1)(q) if the scholarship-funding organization provided
 3471  the majority of the scholarship funding to the school. For each
 3472  private school subject to s. 1002.421(1)(q), the appropriate
 3473  scholarship-funding organization shall annually notify the
 3474  Commissioner of Education by October 30 of:
 3475         (I) A private school’s failure to submit a report required
 3476  under s. 1002.421(1)(q); or
 3477         (II) Any material exceptions set forth in the report
 3478  required under s. 1002.421(1)(q).
 3479         2. Must seek input from the accrediting associations that
 3480  are members of the Florida Association of Academic Nonpublic
 3481  Schools and the Department of Education when jointly developing
 3482  the agreed-upon procedures and guidelines under sub-subparagraph
 3483  1.a. and conducting a review of those procedures and guidelines
 3484  under sub-subparagraph 1.b.
 3485         (p) Must maintain the surety bond or letter of credit
 3486  required by subsection (15). The amount of the surety bond or
 3487  letter of credit may be adjusted quarterly to equal the actual
 3488  amount of undisbursed funds based upon submission by the
 3489  organization of a statement from a certified public accountant
 3490  verifying the amount of undisbursed funds. The requirements of
 3491  this paragraph are waived if the cost of acquiring a surety bond
 3492  or letter of credit exceeds the average 10-year cost of
 3493  acquiring a surety bond or letter of credit by 200 percent. The
 3494  requirements of this paragraph are waived for a state
 3495  university; or an independent college or university which is
 3496  eligible to participate in the William L. Boyd, IV, Effective
 3497  Access to Student Education Grant Program, located and chartered
 3498  in this state, is not for profit, and is accredited by the
 3499  Commission on Colleges of the Southern Association of Colleges
 3500  and Schools.
 3501         (q) Must provide to the Auditor General any information or
 3502  documentation requested in connection with an operational audit
 3503  of a scholarship funding organization conducted pursuant to s.
 3504  11.45.
 3505  
 3506  Information and documentation provided to the Department of
 3507  Education and the Auditor General relating to the identity of a
 3508  taxpayer that provides an eligible contribution under this
 3509  section shall remain confidential at all times in accordance
 3510  with s. 213.053.
 3511         (7) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 3512  PARTICIPATION.—
 3513         (a) The parent must select an eligible private school and
 3514  apply for the admission of his or her child.
 3515         (b) The parent must inform the child’s school district when
 3516  the parent withdraws his or her child to attend an eligible
 3517  private school.
 3518         (c) Any student participating in the scholarship program
 3519  must remain in attendance throughout the school year unless
 3520  excused by the school for illness or other good cause.
 3521         (d) Each parent and each student has an obligation to the
 3522  private school to comply with the private school’s published
 3523  policies.
 3524         (e) The parent shall ensure that the student participating
 3525  in the scholarship program takes the norm-referenced assessment
 3526  offered by the private school. The parent may also choose to
 3527  have the student participate in the statewide assessments
 3528  pursuant to s. 1008.22. If the parent requests that the student
 3529  participating in the scholarship program take statewide
 3530  assessments pursuant to s. 1008.22 and the private school has
 3531  not chosen to offer and administer the statewide assessments,
 3532  the parent is responsible for transporting the student to the
 3533  assessment site designated by the school district.
 3534         (f) Upon receipt of a scholarship warrant from the eligible
 3535  nonprofit scholarship-funding organization, the parent to whom
 3536  the warrant is made must restrictively endorse the warrant to
 3537  the private school for deposit into the account of the private
 3538  school. If payments are made by funds transfer, the parent must
 3539  approve each payment before the scholarship funds may be
 3540  deposited. The parent may not designate any entity or individual
 3541  associated with the participating private school as the parent’s
 3542  attorney in fact to endorse a scholarship warrant or approve a
 3543  funds transfer. A participant who fails to comply with this
 3544  paragraph forfeits the scholarship.
 3545         (g) The parent shall authorize the nonprofit scholarship
 3546  funding organization to access information needed for income
 3547  eligibility determination and verification held by other state
 3548  or federal agencies, including the Department of Revenue, the
 3549  Department of Children and Families, the Department of
 3550  Education, the Department of Economic Opportunity, and the
 3551  Agency for Health Care Administration.
 3552         (8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 3553  private school may be sectarian or nonsectarian and must:
 3554         (a) Comply with all requirements for private schools
 3555  participating in state school choice scholarship programs
 3556  pursuant to s. 1002.421.
 3557         (b)1. Annually administer or make provision for students
 3558  participating in the scholarship program in grades 3 through 10
 3559  to take one of the nationally norm-referenced tests identified
 3560  by the Department of Education or the statewide assessments
 3561  pursuant to s. 1008.22. Students with disabilities for whom
 3562  standardized testing is not appropriate are exempt from this
 3563  requirement. A participating private school must report a
 3564  student’s scores to the parent. A participating private school
 3565  must annually report by August 15 the scores of all
 3566  participating students to a state university described in
 3567  paragraph (9)(f).
 3568         2. Administer the statewide assessments pursuant to s.
 3569  1008.22 if a private school chooses to offer the statewide
 3570  assessments. A participating private school may choose to offer
 3571  and administer the statewide assessments to all students who
 3572  attend the private school in grades 3 through 10 and must submit
 3573  a request in writing to the Department of Education by March 1
 3574  of each year in order to administer the statewide assessments in
 3575  the subsequent school year.
 3576  
 3577  If a private school fails to meet the requirements of this
 3578  subsection or s. 1002.421, the commissioner may determine that
 3579  the private school is ineligible to participate in the
 3580  scholarship program.
 3581         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of
 3582  Education shall:
 3583         (a) Annually submit to the department and division, by
 3584  March 15, a list of eligible nonprofit scholarship-funding
 3585  organizations that meet the requirements of paragraph (2)(f).
 3586         (b) Annually verify the eligibility of nonprofit
 3587  scholarship-funding organizations that meet the requirements of
 3588  paragraph (2)(f).
 3589         (c) Annually verify the eligibility of expenditures as
 3590  provided in paragraph (6)(d) using the audit required by
 3591  paragraph (6)(m) and s. 11.45(2)(l).
 3592         (d) Cross-check the list of participating scholarship
 3593  students with the public school enrollment lists to avoid
 3594  duplication.
 3595         (e) Maintain a list of nationally norm-referenced tests
 3596  identified for purposes of satisfying the testing requirement in
 3597  subparagraph (8)(b)1. The tests must meet industry standards of
 3598  quality in accordance with State Board of Education rule.
 3599         (f) Issue a project grant award to a state university, to
 3600  which participating private schools must report the scores of
 3601  participating students on the nationally norm-referenced tests
 3602  or the statewide assessments administered by the private school
 3603  in grades 3 through 10. The project term is 2 years, and the
 3604  amount of the project is up to $250,000 per year. The project
 3605  grant award must be reissued in 2-year intervals in accordance
 3606  with this paragraph.
 3607         1. The state university must annually report to the
 3608  Department of Education on the student performance of
 3609  participating students:
 3610         a. On a statewide basis. The report shall also include, to
 3611  the extent possible, a comparison of scholarship students’
 3612  performance to the statewide student performance of public
 3613  school students with socioeconomic backgrounds similar to those
 3614  of students participating in the scholarship program. To
 3615  minimize costs and reduce time required for the state
 3616  university’s analysis and evaluation, the Department of
 3617  Education shall coordinate with the state university to provide
 3618  data to the state university in order to conduct analyses of
 3619  matched students from public school assessment data and
 3620  calculate control group student performance using an agreed-upon
 3621  methodology with the state university; and
 3622         b. On an individual school basis. The annual report must
 3623  include student performance for each participating private
 3624  school in which at least 51 percent of the total enrolled
 3625  students in the private school participated in the Florida Tax
 3626  Credit Scholarship Program in the prior school year. The report
 3627  shall be according to each participating private school, and for
 3628  participating students, in which there are at least 30
 3629  participating students who have scores for tests administered.
 3630  If the state university determines that the 30-participating
 3631  student cell size may be reduced without disclosing personally
 3632  identifiable information, as described in 34 C.F.R. s. 99.12, of
 3633  a participating student, the state university may reduce the
 3634  participating-student cell size, but the cell size must not be
 3635  reduced to less than 10 participating students. The department
 3636  shall provide each private school’s prior school year’s student
 3637  enrollment information to the state university no later than
 3638  June 15 of each year, or as requested by the state university.
 3639         2. The sharing and reporting of student performance data
 3640  under this paragraph must be in accordance with requirements of
 3641  ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g, the Family
 3642  Educational Rights and Privacy Act, and the applicable rules and
 3643  regulations issued pursuant thereto, and shall be for the sole
 3644  purpose of creating the annual report required by subparagraph
 3645  1. All parties must preserve the confidentiality of such
 3646  information as required by law. The annual report must not
 3647  disaggregate data to a level that will identify individual
 3648  participating schools, except as required under sub-subparagraph
 3649  1.b., or disclose the academic level of individual students.
 3650         3. The annual report required by subparagraph 1. shall be
 3651  published by the Department of Education on its website.
 3652         (g) Notify an eligible nonprofit scholarship-funding
 3653  organization of any of the organization’s identified students
 3654  who are receiving educational scholarships pursuant to chapter
 3655  1002.
 3656         (h) Notify an eligible nonprofit scholarship-funding
 3657  organization of any of the organization’s identified students
 3658  who are receiving tax credit scholarships from other eligible
 3659  nonprofit scholarship-funding organizations.
 3660         (i) Require quarterly reports by an eligible nonprofit
 3661  scholarship-funding organization regarding the number of
 3662  students participating in the scholarship program, the private
 3663  schools at which the students are enrolled, and other
 3664  information deemed necessary by the Department of Education.
 3665         (j) Provide a process to match the direct certification
 3666  list with the scholarship application data submitted by any
 3667  nonprofit scholarship-funding organization eligible to receive
 3668  the 3-percent administrative allowance under paragraph (6)(j).
 3669         (10) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 3670         (a) Upon the request of any eligible nonprofit scholarship
 3671  funding organization, a school district shall inform all
 3672  households within the district receiving free or reduced-priced
 3673  meals under the National School Lunch Act of their eligibility
 3674  to apply for a tax credit scholarship. The form of such notice
 3675  shall be provided by the eligible nonprofit scholarship-funding
 3676  organization, and the district shall include the provided form,
 3677  if requested by the organization, in any normal correspondence
 3678  with eligible households. If an eligible nonprofit scholarship
 3679  funding organization requests a special communication to be
 3680  issued to households within the district receiving free or
 3681  reduced-price meals under the National School Lunch Act, the
 3682  organization shall reimburse the district for the cost of
 3683  postage. Such notice is limited to once a year.
 3684         (b) Upon the request of the Department of Education, a
 3685  school district shall coordinate with the department to provide
 3686  to a participating private school the statewide assessments
 3687  administered under s. 1008.22 and any related materials for
 3688  administering the assessments. A school district is responsible
 3689  for implementing test administrations at a participating private
 3690  school, including the:
 3691         1. Provision of training for private school staff on test
 3692  security and assessment administration procedures;
 3693         2. Distribution of testing materials to a private school;
 3694         3. Retrieval of testing materials from a private school;
 3695         4. Provision of the required format for a private school to
 3696  submit information to the district for test administration and
 3697  enrollment purposes; and
 3698         5. Provision of any required assistance, monitoring, or
 3699  investigation at a private school.
 3700         (11) SCHOLARSHIP AMOUNT AND PAYMENT.—
 3701         (a) The scholarship amount provided to any student for any
 3702  single school year by an eligible nonprofit scholarship-funding
 3703  organization from eligible contributions shall be for total
 3704  costs authorized under paragraph (6)(d), not to exceed annual
 3705  limits, which shall be determined as follows:
 3706         1. For a student who received a scholarship in the 2018
 3707  2019 school year, who remains eligible, and who is enrolled in
 3708  an eligible private school, the amount shall be the greater
 3709  amount calculated pursuant to subparagraph 2. or a percentage of
 3710  the unweighted FTE funding amount for the 2018-2019 state fiscal
 3711  year and thereafter as follows:
 3712         a. Eighty-eight percent for a student enrolled in
 3713  kindergarten through grade 5.
 3714         b. Ninety-two percent for a student enrolled in grade 6
 3715  through grade 8.
 3716         c. Ninety-six percent for a student enrolled in grade 9
 3717  through grade 12.
 3718         2. For students initially eligible in the 2019-2020 school
 3719  year or thereafter, the calculated amount for a student to
 3720  attend an eligible private school shall be based upon the grade
 3721  level and school district in which the student resides as 95
 3722  percent of the funds per unweighted full-time equivalent in the
 3723  Florida Education Finance Program for a student in the basic
 3724  program established pursuant to s. 1011.62(1)(c)1., plus a per
 3725  full-time equivalent share of funds for all categorical
 3726  programs, except for the Exceptional Student Education
 3727  Guaranteed Allocation.
 3728         3. The scholarship amount awarded to a student enrolled in
 3729  a Florida public school in which a student is enrolled and that
 3730  is different from the school to which the student was assigned
 3731  or in a lab school as defined in s. 1002.32, is limited to $750.
 3732         (b) Payment of the scholarship by the eligible nonprofit
 3733  scholarship-funding organization shall be by individual warrant
 3734  made payable to the student’s parent or by funds transfer,
 3735  including, but not limited to, debit cards, electronic payment
 3736  cards, or any other means of payment that the department deems
 3737  to be commercially viable or cost-effective. If the payment is
 3738  made by warrant, the warrant must be delivered by the eligible
 3739  nonprofit scholarship-funding organization to the private school
 3740  of the parent’s choice, and the parent shall restrictively
 3741  endorse the warrant to the private school. An eligible nonprofit
 3742  scholarship-funding organization shall ensure that the parent to
 3743  whom the warrant is made restrictively endorsed the warrant to
 3744  the private school for deposit into the account of the private
 3745  school or that the parent has approved a funds transfer before
 3746  any scholarship funds are deposited.
 3747         (c) An eligible nonprofit scholarship-funding organization
 3748  shall obtain verification from the private school of a student’s
 3749  continued attendance at the school for each period covered by a
 3750  scholarship payment.
 3751         (d) Payment of the scholarship shall be made by the
 3752  eligible nonprofit scholarship-funding organization no less
 3753  frequently than on a quarterly basis.
 3754         (12) ADMINISTRATION; RULES.—
 3755         (a) The department, the division, and the Department of
 3756  Education shall develop a cooperative agreement to assist in the
 3757  administration of this section.
 3758         (b) The department shall adopt rules necessary to
 3759  administer this section and ss. 211.0251, 212.1831, 220.1875,
 3760  561.1211, and 624.51055, including rules establishing
 3761  application forms, procedures governing the approval of tax
 3762  credits and carryforward tax credits under subsection (5), and
 3763  procedures to be followed by taxpayers when claiming approved
 3764  tax credits on their returns.
 3765         (c) The division shall adopt rules necessary to administer
 3766  its responsibilities under this section and s. 561.1211.
 3767         (d) The State Board of Education shall adopt rules to
 3768  administer the responsibilities of the Department of Education
 3769  and the Commissioner of Education under this section.
 3770         (4)(13) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.—All eligible
 3771  contributions received by the department and the division must
 3772  by an eligible nonprofit scholarship-funding organization shall
 3773  be deposited into a designated student fund and used for K-12
 3774  education funding in a manner consistent with s. 17.57(2).
 3775         (14) PRESERVATION OF CREDIT.—If any provision or portion of
 3776  this section, s. 211.0251, s. 212.1831, s. 220.1875, s.
 3777  561.1211, or s. 624.51055 or the application thereof to any
 3778  person or circumstance is held unconstitutional by any court or
 3779  is otherwise declared invalid, the unconstitutionality or
 3780  invalidity shall not affect any credit earned under s. 211.0251,
 3781  s. 212.1831, s. 220.1875, s. 561.1211, or s. 624.51055 by any
 3782  taxpayer with respect to any contribution paid to an eligible
 3783  nonprofit scholarship-funding organization before the date of a
 3784  determination of unconstitutionality or invalidity. Such credit
 3785  shall be allowed at such time and in such a manner as if a
 3786  determination of unconstitutionality or invalidity had not been
 3787  made, provided that nothing in this subsection by itself or in
 3788  combination with any other provision of law shall result in the
 3789  allowance of any credit to any taxpayer in excess of one dollar
 3790  of credit for each dollar paid to an eligible nonprofit
 3791  scholarship-funding organization.
 3792         (15) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 3793  APPLICATION.—In order to participate in the scholarship program
 3794  created under this section, a charitable organization that seeks
 3795  to be a nonprofit scholarship-funding organization must submit
 3796  an application for initial approval or renewal to the Office of
 3797  Independent Education and Parental Choice no later than
 3798  September 1 of each year before the school year for which the
 3799  organization intends to offer scholarships.
 3800         (a) An application for initial approval must include:
 3801         1. A copy of the organization’s incorporation documents and
 3802  registration with the Division of Corporations of the Department
 3803  of State.
 3804         2. A copy of the organization’s Internal Revenue Service
 3805  determination letter as a s. 501(c)(3) not-for-profit
 3806  organization.
 3807         3. A description of the organization’s financial plan that
 3808  demonstrates sufficient funds to operate throughout the school
 3809  year.
 3810         4. A description of the geographic region that the
 3811  organization intends to serve and an analysis of the demand and
 3812  unmet need for eligible students in that area.
 3813         5. The organization’s organizational chart.
 3814         6. A description of the criteria and methodology that the
 3815  organization will use to evaluate scholarship eligibility.
 3816         7. A description of the application process, including
 3817  deadlines and any associated fees.
 3818         8. A description of the deadlines for attendance
 3819  verification and scholarship payments.
 3820         9. A copy of the organization’s policies on conflict of
 3821  interest and whistleblowers.
 3822         10. A copy of a surety bond or letter of credit to secure
 3823  the faithful performance of the obligations of the eligible
 3824  nonprofit scholarship-funding organization in accordance with
 3825  this section in an amount equal to 25 percent of the scholarship
 3826  funds anticipated for each school year or $100,000, whichever is
 3827  greater. The surety bond or letter of credit must specify that
 3828  any claim against the bond or letter of credit may be made only
 3829  by an eligible nonprofit scholarship-funding organization to
 3830  provide scholarships to and on behalf of students who would have
 3831  had scholarships funded if it were not for the diversion of
 3832  funds giving rise to the claim against the bond or letter of
 3833  credit.
 3834         (b) In addition to the information required by
 3835  subparagraphs (a)1.-9., an application for renewal must include:
 3836         1. A surety bond or letter of credit to secure the faithful
 3837  performance of the obligations of the eligible nonprofit
 3838  scholarship-funding organization in accordance with this section
 3839  equal to the amount of undisbursed donations held by the
 3840  organization based on the annual report submitted pursuant to
 3841  paragraph (6)(m). The amount of the surety bond or letter of
 3842  credit must be at least $100,000, but not more than $25 million.
 3843  The surety bond or letter of credit must specify that any claim
 3844  against the bond or letter of credit may be made only by an
 3845  eligible nonprofit scholarship-funding organization to provide
 3846  scholarships to and on behalf of students who would have had
 3847  scholarships funded if it were not for the diversion of funds
 3848  giving rise to the claim against the bond or letter of credit.
 3849         2. The organization’s completed Internal Revenue Service
 3850  Form 990 submitted no later than November 30 of the year before
 3851  the school year that the organization intends to offer the
 3852  scholarships, notwithstanding the September 1 application
 3853  deadline.
 3854         3. A copy of the statutorily required audit to the
 3855  Department of Education and Auditor General.
 3856         4. An annual report that includes:
 3857         a. The number of students who completed applications, by
 3858  county and by grade.
 3859         b. The number of students who were approved for
 3860  scholarships, by county and by grade.
 3861         c. The number of students who received funding for
 3862  scholarships within each funding category, by county and by
 3863  grade.
 3864         d. The amount of funds received, the amount of funds
 3865  distributed in scholarships, and an accounting of remaining
 3866  funds and the obligation of those funds.
 3867         e. A detailed accounting of how the organization spent the
 3868  administrative funds allowable under paragraph (6)(j).
 3869         (c) In consultation with the Department of Revenue and the
 3870  Chief Financial Officer, the Office of Independent Education and
 3871  Parental Choice shall review the application. The Department of
 3872  Education shall notify the organization in writing of any
 3873  deficiencies within 30 days after receipt of the application and
 3874  allow the organization 30 days to correct any deficiencies.
 3875         (d) Within 30 days after receipt of the finalized
 3876  application by the Office of Independent Education and Parental
 3877  Choice, the Commissioner of Education shall recommend approval
 3878  or disapproval of the application to the State Board of
 3879  Education. The State Board of Education shall consider the
 3880  application and recommendation at the next scheduled meeting,
 3881  adhering to appropriate meeting notice requirements. If the
 3882  State Board of Education disapproves the organization’s
 3883  application, it shall provide the organization with a written
 3884  explanation of that determination. The State Board of
 3885  Education’s action is not subject to chapter 120.
 3886         (e) If the State Board of Education disapproves the renewal
 3887  of a nonprofit scholarship-funding organization, the
 3888  organization must notify the affected eligible students and
 3889  parents of the decision within 15 days after disapproval. An
 3890  eligible student affected by the disapproval of an
 3891  organization’s participation remains eligible under this section
 3892  until the end of the school year in which the organization was
 3893  disapproved. The student must apply and be accepted by another
 3894  eligible nonprofit scholarship-funding organization for the
 3895  upcoming school year. The student shall be given priority in
 3896  accordance with paragraph (6)(f).
 3897         (f) All remaining funds held by a nonprofit scholarship
 3898  funding organization that is disapproved for participation must
 3899  be transferred to other eligible nonprofit scholarship-funding
 3900  organizations to provide scholarships for eligible students. All
 3901  transferred funds must be deposited by each eligible nonprofit
 3902  scholarship-funding organization receiving such funds into its
 3903  scholarship account. All transferred amounts received by any
 3904  eligible nonprofit scholarship-funding organization must be
 3905  separately disclosed in the annual financial audit required
 3906  under subsection (6).
 3907         (g) A nonprofit scholarship-funding organization is a
 3908  renewing organization if it maintains continuous approval and
 3909  participation in the program. An organization that chooses not
 3910  to participate for 1 year or more or is disapproved to
 3911  participate for 1 year or more must submit an application for
 3912  initial approval in order to participate in the program again.
 3913         (h) The State Board of Education shall adopt rules
 3914  providing guidelines for receiving, reviewing, and approving
 3915  applications for new and renewing nonprofit scholarship-funding
 3916  organizations. The rules must include a process for compiling
 3917  input and recommendations from the Chief Financial Officer, the
 3918  Department of Revenue, and the Department of Education. The
 3919  rules must also require that the nonprofit scholarship-funding
 3920  organization make a brief presentation to assist the State Board
 3921  of Education in its decision.
 3922         (i) A state university; or an independent college or
 3923  university which is eligible to participate in the William L.
 3924  Boyd, IV, Effective Access to Student Education Grant Program,
 3925  located and chartered in this state, is not for profit, and is
 3926  accredited by the Commission on Colleges of the Southern
 3927  Association of Colleges and Schools, is exempt from the initial
 3928  or renewal application process, but must file a registration
 3929  notice with the Department of Education to be an eligible
 3930  nonprofit scholarship-funding organization. The State Board of
 3931  Education shall adopt rules that identify the procedure for
 3932  filing the registration notice with the department. The rules
 3933  must identify appropriate reporting requirements for fiscal,
 3934  programmatic, and performance accountability purposes consistent
 3935  with this section, but shall not exceed the requirements for
 3936  eligible nonprofit scholarship-funding organizations for
 3937  charitable organizations.
 3938         Section 21. Section 1002.40, Florida Statutes, is amended
 3939  to read:
 3940         1002.40 The Hope Scholarship Florida K-12 Education Funding
 3941  Tax Credit Program.—
 3942         (1) PURPOSE.—The Hope Scholarship Program is established to
 3943  provide the parent of a public school student who was subjected
 3944  to an incident listed in subsection (3) an opportunity to
 3945  transfer the student to another public school or to request a
 3946  scholarship for the student to enroll in and attend an eligible
 3947  private school.
 3948         (2) DEFINITIONS.—As used in this section, the term:
 3949         (a) “Dealer” has the same meaning as provided in s. 212.06.
 3950         (b) “Department” means the Department of Education.
 3951         (c) “Designated agent” has the same meaning as provided in
 3952  s. 212.06(10).
 3953         (c)(d) “Eligible contribution” or “contribution” means the
 3954  amount of tax paid by a monetary contribution from a person
 3955  purchasing a motor vehicle, subject to the restrictions provided
 3956  in this section, and designated by the purchaser to be used for
 3957  K-12 education funding an eligible nonprofit scholarship-funding
 3958  organization. The person making the contribution may not
 3959  designate a specific student as the beneficiary of the
 3960  contribution.
 3961         (e) “Eligible nonprofit scholarship-funding organization”
 3962  or “organization” has the same meaning as provided in s.
 3963  1002.395(2)(f).
 3964         (f) “Eligible private school” has the same meaning as
 3965  provided in s. 1002.395(2)(g).
 3966         (d)(g) “Motor vehicle” has the same meaning as provided in
 3967  s. 320.01(1)(a), but does not include a heavy truck, truck
 3968  tractor, trailer, or motorcycle.
 3969         (h) “Parent” means a resident of this state who is a
 3970  parent, as defined in s. 1000.21, and whose student reported an
 3971  incident in accordance with subsection (6).
 3972         (i) “Program” means the Hope Scholarship Program.
 3973         (j) “School” means any educational program or activity
 3974  conducted by a public K-12 educational institution, any school
 3975  related or school-sponsored program or activity, and riding on a
 3976  school bus, as defined in s. 1006.25(1), including waiting at a
 3977  school bus stop.
 3978         (k) “Unweighted FTE funding amount” means the statewide
 3979  average total funds per unweighted full-time equivalent funding
 3980  amount that is incorporated by reference in the General
 3981  Appropriations Act, or by a subsequent special appropriations
 3982  act, for the applicable state fiscal year.
 3983         (3) PROGRAM ELIGIBILITY.—Beginning with the 2018-2019
 3984  school year, contingent upon available funds, and on a first
 3985  come, first-served basis, a student enrolled in a Florida public
 3986  school in kindergarten through grade 12 is eligible for a
 3987  scholarship under this program if the student reported an
 3988  incident in accordance with subsection (6). For purposes of this
 3989  section, the term “incident” means battery; harassment; hazing;
 3990  bullying; kidnapping; physical attack; robbery; sexual offenses,
 3991  harassment, assault, or battery; threat or intimidation; or
 3992  fighting at school, as defined by the department in accordance
 3993  with s. 1006.09(6).
 3994         (4) PROGRAM PROHIBITIONS.—Payment of a scholarship to a
 3995  student enrolled in a private school may not be made if a
 3996  student is:
 3997         (a) Enrolled in a public school, including, but not limited
 3998  to, the Florida School for the Deaf and the Blind; the College
 3999  Preparatory Boarding Academy; a developmental research school
 4000  authorized under s. 1002.32; or a charter school authorized
 4001  under s. 1002.33, s. 1002.331, or s. 1002.332;
 4002         (b) Enrolled in a school operating for the purpose of
 4003  providing educational services to youth in the Department of
 4004  Juvenile Justice commitment programs;
 4005         (c) Participating in a virtual school, correspondence
 4006  school, or distance learning program that receives state funding
 4007  pursuant to the student’s participation unless the participation
 4008  is limited to no more than two courses per school year; or
 4009         (d) Receiving any other educational scholarship pursuant to
 4010  this chapter.
 4011         (5) TERM OF HOPE SCHOLARSHIP.—For purposes of continuity of
 4012  educational choice, a Hope scholarship shall remain in force
 4013  until the student returns to public school or graduates from
 4014  high school, whichever occurs first. A scholarship student who
 4015  enrolls in a public school or public school program is
 4016  considered to have returned to a public school for the purpose
 4017  of determining the end of the scholarship’s term.
 4018         (6) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 4019         (a) Upon receipt of a report of an incident, the school
 4020  principal, or his or her designee, shall provide a copy of the
 4021  report to the parent and investigate the incident to determine
 4022  if the incident must be reported as required by s. 1006.09(6).
 4023  Within 24 hours after receipt of the report, the principal or
 4024  his or her designee shall provide a copy of the report to the
 4025  parent of the alleged offender and to the superintendent. Upon
 4026  conclusion of the investigation or within 15 days after the
 4027  incident was reported, whichever occurs first, the school
 4028  district shall notify the parent of the program and offer the
 4029  parent an opportunity to enroll his or her student in another
 4030  public school that has capacity or to request and receive a
 4031  scholarship to attend an eligible private school, subject to
 4032  available funding. A parent who chooses to enroll his or her
 4033  student in a public school located outside the district in which
 4034  the student resides pursuant to s. 1002.31 shall be eligible for
 4035  a scholarship to transport the student as provided in paragraph
 4036  (11)(b).
 4037         (b) For each student participating in the program in an
 4038  eligible private school who chooses to participate in the
 4039  statewide assessments under s. 1008.22 or the Florida Alternate
 4040  Assessment, the school district in which the student resides
 4041  must notify the student and his or her parent about the
 4042  locations and times to take all statewide assessments.
 4043         (7) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 4044  private school may be sectarian or nonsectarian and shall:
 4045         (a) Comply with all requirements for private schools
 4046  participating in state school choice scholarship programs
 4047  pursuant to this section and s. 1002.421.
 4048         (b)1. Annually administer or make provision for students
 4049  participating in the program in grades 3 through 10 to take one
 4050  of the nationally norm-referenced tests identified by the
 4051  department or the statewide assessments pursuant to s. 1008.22.
 4052  Students with disabilities for whom standardized testing is not
 4053  appropriate are exempt from this requirement. A participating
 4054  private school shall report a student’s scores to his or her
 4055  parent.
 4056         2. Administer the statewide assessments pursuant to s.
 4057  1008.22 if a private school chooses to offer the statewide
 4058  assessments. A participating private school may choose to offer
 4059  and administer the statewide assessments to all students who
 4060  attend the private school in grades 3 through 10 and must submit
 4061  a request in writing to the department by March 1 of each year
 4062  in order to administer the statewide assessments in the
 4063  subsequent school year.
 4064  
 4065  If a private school fails to meet the requirements of this
 4066  subsection or s. 1002.421, the commissioner may determine that
 4067  the private school is ineligible to participate in the program.
 4068         (8) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 4069  shall:
 4070         (a) Cross-check the list of participating scholarship
 4071  students with the public school enrollment lists to avoid
 4072  duplication.
 4073         (b) Maintain a list of nationally norm-referenced tests
 4074  identified for purposes of satisfying the testing requirement in
 4075  paragraph (9)(f). The tests must meet industry standards of
 4076  quality in accordance with State Board of Education rule.
 4077         (c) Require quarterly reports by an eligible nonprofit
 4078  scholarship-funding organization regarding the number of
 4079  students participating in the program, the private schools in
 4080  which the students are enrolled, and other information deemed
 4081  necessary by the department.
 4082         (d) Contract with an independent entity to provide an
 4083  annual evaluation of the program by:
 4084         1. Reviewing the school bullying prevention education
 4085  program, climate, and code of student conduct of each public
 4086  school from which 10 or more students transferred to another
 4087  public school or private school using the Hope scholarship to
 4088  determine areas in the school or school district procedures
 4089  involving reporting, investigating, and communicating a parent’s
 4090  and student’s rights that are in need of improvement. At a
 4091  minimum, the review must include:
 4092         a. An assessment of the investigation time and quality of
 4093  the response of the school and the school district.
 4094         b. An assessment of the effectiveness of communication
 4095  procedures with the students involved in an incident, the
 4096  students’ parents, and the school and school district personnel.
 4097         c. An analysis of school incident and discipline data.
 4098         d. The challenges and obstacles relating to implementing
 4099  recommendations from the review.
 4100         2. Reviewing the school bullying prevention education
 4101  program, climate, and code of student conduct of each public
 4102  school to which a student transferred if the student was from a
 4103  school identified in subparagraph 1. in order to identify best
 4104  practices and make recommendations to a public school at which
 4105  the incidents occurred.
 4106         3. Reviewing the performance of participating students
 4107  enrolled in a private school in which at least 51 percent of the
 4108  total enrolled students in the prior school year participated in
 4109  the program and in which there are at least 10 participating
 4110  students who have scores for tests administered.
 4111         4. Surveying the parents of participating students to
 4112  determine academic, safety, and school climate satisfaction and
 4113  to identify any challenges to or obstacles in addressing the
 4114  incident or relating to the use of the scholarship.
 4115         (9) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 4116  PARTICIPATION.—A parent who applies for a Hope scholarship is
 4117  exercising his or her parental option to place his or her
 4118  student in an eligible private school.
 4119         (a) The parent must select an eligible private school and
 4120  apply for the admission of his or her student.
 4121         (b) The parent must inform the student’s school district
 4122  when the parent withdraws his or her student to attend an
 4123  eligible private school.
 4124         (c) Any student participating in the program must remain in
 4125  attendance throughout the school year unless excused by the
 4126  school for illness or other good cause.
 4127         (d) Each parent and each student has an obligation to the
 4128  private school to comply with such school’s published policies.
 4129         (e) Upon reasonable notice to the department and the school
 4130  district, the parent may remove the student from the private
 4131  school and place the student in a public school in accordance
 4132  with this section.
 4133         (f) The parent must ensure that the student participating
 4134  in the program takes the norm-referenced assessment offered by
 4135  the private school. The parent may also choose to have the
 4136  student participate in the statewide assessments pursuant to s.
 4137  1008.22. If the parent requests that the student take the
 4138  statewide assessments pursuant to s. 1008.22 and the private
 4139  school has not chosen to offer and administer the statewide
 4140  assessments, the parent is responsible for transporting the
 4141  student to the assessment site designated by the school
 4142  district.
 4143         (g) Upon receipt of a scholarship warrant, the parent to
 4144  whom the warrant is made must restrictively endorse the warrant
 4145  to the private school for deposit into the account of such
 4146  school. If payment is made by funds transfer in accordance with
 4147  paragraph (11)(d), the parent must approve each payment before
 4148  the scholarship funds may be deposited. The parent may not
 4149  designate any entity or individual associated with the
 4150  participating private school as the parent’s attorney in fact to
 4151  endorse a scholarship warrant or approve a funds transfer. A
 4152  parent who fails to comply with this paragraph forfeits the
 4153  scholarship.
 4154         (10) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
 4155  ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 4156  organization may establish scholarships for eligible students
 4157  by:
 4158         (a) Receiving applications and determining student
 4159  eligibility in accordance with the requirements of this section.
 4160         (b) Notifying parents of their receipt of a scholarship on
 4161  a first-come, first-served basis, based upon available funds.
 4162         (c) Establishing a date by which the parent of a
 4163  participating student must confirm continuing participation in
 4164  the program.
 4165         (d) Awarding scholarship funds to eligible students, giving
 4166  priority to renewing students from the previous year.
 4167         (e) Preparing and submitting quarterly reports to the
 4168  department pursuant to paragraph (8)(c). In addition, an
 4169  eligible nonprofit scholarship-funding organization must submit
 4170  in a timely manner any information requested by the department
 4171  relating to the program.
 4172         (f) Notifying the department of any violation of this
 4173  section.
 4174         (11) FUNDING AND PAYMENT.—
 4175         (a) For students initially eligible in the 2019-2020 school
 4176  year or thereafter, the calculated amount for a student to
 4177  attend an eligible private school shall be based upon the grade
 4178  level and school district in which the student was assigned as
 4179  95 percent of the funds per unweighted full-time equivalent in
 4180  the Florida Education Finance Program for a student in the basic
 4181  program established pursuant to s. 1011.62(1)(c)1., plus a per
 4182  full-time equivalent share of funds for all categorical
 4183  programs, except for the Exceptional Student Education
 4184  Guaranteed Allocation.
 4185         (b) The maximum amount awarded to a student enrolled in a
 4186  public school located outside of the district in which the
 4187  student resides shall be $750.
 4188         (c) When a student enters the program, the eligible
 4189  nonprofit scholarship-funding organization must receive all
 4190  documentation required for the student’s participation,
 4191  including a copy of the report of the incident received pursuant
 4192  to subsection (6) and the private school’s and student’s fee
 4193  schedules. The initial payment shall be made after verification
 4194  of admission acceptance, and subsequent payments shall be made
 4195  upon verification of continued enrollment and attendance at the
 4196  private school.
 4197         (d) Payment of the scholarship by the eligible nonprofit
 4198  scholarship-funding organization may be by individual warrant
 4199  made payable to the student’s parent or by funds transfer,
 4200  including, but not limited to, debit cards, electronic payment
 4201  cards, or any other means of payment that the department deems
 4202  to be commercially viable or cost-effective. If payment is made
 4203  by warrant, the warrant must be delivered by the eligible
 4204  nonprofit scholarship-funding organization to the private school
 4205  of the parent’s choice, and the parent shall restrictively
 4206  endorse the warrant to the private school. If payments are made
 4207  by funds transfer, the parent must approve each payment before
 4208  the scholarship funds may be deposited. The parent may not
 4209  designate any entity or individual associated with the
 4210  participating private school as the parent’s attorney in fact to
 4211  endorse a scholarship warrant or approve a funds transfer.
 4212         (e) An eligible nonprofit scholarship-funding organization
 4213  shall obtain verification from the private school of a student’s
 4214  continued attendance at the school for each period covered by a
 4215  scholarship payment.
 4216         (f) Payment of the scholarship shall be made by the
 4217  eligible nonprofit scholarship-funding organization no less
 4218  frequently than on a quarterly basis.
 4219         (g) An eligible nonprofit scholarship-funding organization,
 4220  subject to the limitations of s. 1002.395(6)(j)1., may use
 4221  eligible contributions received during the state fiscal year in
 4222  which such contributions are collected for administrative
 4223  expenses.
 4224         (h) Moneys received pursuant to this section do not
 4225  constitute taxable income to the qualified student or his or her
 4226  parent.
 4227         (i) Notwithstanding s. 1002.395(6)(j)2., no more than 5
 4228  percent of net eligible contributions may be carried forward to
 4229  the following state fiscal year by an eligible scholarship
 4230  funding organization. For audit purposes, all amounts carried
 4231  forward must be specifically identified for individual students
 4232  by student name and by the name of the school to which the
 4233  student is admitted, subject to the requirements of ss. 1002.21
 4234  and 1002.22 and 20 U.S.C. s. 1232g, and the applicable rules and
 4235  regulations issued pursuant to such requirements. Any amounts
 4236  carried forward shall be expended for annual scholarships or
 4237  partial-year scholarships in the following state fiscal year.
 4238  Net eligible contributions remaining on June 30 of each year
 4239  which are in excess of the 5 percent that may be carried forward
 4240  shall be transferred to other eligible nonprofit scholarship
 4241  funding organizations participating in the Hope Scholarship
 4242  Program to provide scholarships for eligible students. All
 4243  transferred funds must be deposited by each eligible nonprofit
 4244  scholarship-funding organization receiving such funds into the
 4245  scholarship account of eligible students. All transferred
 4246  amounts received by an eligible nonprofit scholarship-funding
 4247  organization must be separately disclosed in the annual
 4248  financial audit requirement under s. 1002.395(6)(m). If no other
 4249  eligible nonprofit scholarship-funding organization participates
 4250  in the Hope Scholarship Program, net eligible contributions in
 4251  excess of the 5 percent may be used to fund scholarships for
 4252  students eligible under s. 1002.395 only after fully exhausting
 4253  all contributions made in support of scholarships under that
 4254  section in accordance with the priority established in s.
 4255  1002.395(6)(e) prior to awarding any initial scholarships.
 4256         (12) OBLIGATIONS OF THE AUDITOR GENERAL.—
 4257         (a) The Auditor General shall conduct an annual operational
 4258  audit of accounts and records of each organization that
 4259  participates in the program. As part of this audit, the Auditor
 4260  General shall verify, at a minimum, the total number of students
 4261  served and transmit that information to the department. The
 4262  Auditor General shall provide the commissioner with a copy of
 4263  each annual operational audit performed pursuant to this
 4264  paragraph within 10 days after the audit is finalized.
 4265         (b) The Auditor General shall notify the department of any
 4266  organization that fails to comply with a request for
 4267  information.
 4268         (2)(13) SCHOLARSHIP FUNDING TAX CREDITS.—
 4269         (a) A tax credit is available under s. 212.1832(1) for use
 4270  by a person that makes an eligible contribution. Eligible
 4271  contributions shall be used for K-12 education funding to fund
 4272  scholarships under this section and may be used to fund
 4273  scholarships under s. 1002.395. Each eligible contribution is
 4274  limited to a single designation payment of $105 per motor
 4275  vehicle purchased at the time of purchase of a motor vehicle or
 4276  a single designation payment of $105 per motor vehicle purchased
 4277  at the time of registration of a motor vehicle that was not
 4278  purchased from a dealer, except that a contribution may not
 4279  exceed the state tax imposed under chapter 212 that would
 4280  otherwise be collected from the purchaser by a dealer,
 4281  designated agent, or private tag agent. Payments of
 4282  contributions shall be made to a dealer at the time of purchase
 4283  of a motor vehicle or to a designated agent or private tag agent
 4284  at the time of registration of a motor vehicle that was not
 4285  purchased from a dealer. An eligible contribution shall be
 4286  accompanied by a contribution election form provided by the
 4287  Department of Revenue, developed in collaboration with the
 4288  Department of Education. The form shall include, at a minimum, a
 4289  the following brief description of each scholarship program
 4290  available under this chapter and the type of student served in
 4291  each program the Hope Scholarship Program and the Florida Tax
 4292  Credit Scholarship Program: “THE HOPE SCHOLARSHIP PROGRAM
 4293  PROVIDES A PUBLIC SCHOOL STUDENT WHO WAS SUBJECTED TO AN
 4294  INCIDENT OF VIOLENCE OR BULLYING AT SCHOOL THE OPPORTUNITY TO
 4295  APPLY FOR A SCHOLARSHIP TO ATTEND AN ELIGIBLE PRIVATE SCHOOL
 4296  RATHER THAN REMAIN IN AN UNSAFE SCHOOL ENVIRONMENT. THE FLORIDA
 4297  TAX CREDIT SCHOLARSHIP PROGRAM PROVIDES A LOW-INCOME STUDENT THE
 4298  OPPORTUNITY TO APPLY FOR A SCHOLARSHIP TO ATTEND AN ELIGIBLE
 4299  PRIVATE SCHOOL.” The form shall also include, at a minimum, a
 4300  section allowing the consumer to designate, from all
 4301  participating scholarship funding organizations, which
 4302  organization will receive his or her donation. For purposes of
 4303  this subsection, the term “purchase” does not include the lease
 4304  or rental of a motor vehicle.
 4305         (b) A dealer, designated agent, or private tag agent shall:
 4306         1. Provide the purchaser the contribution election form, as
 4307  provided by the Department of Revenue, at the time of purchase
 4308  of a motor vehicle or at the time of registration of a motor
 4309  vehicle that was not purchased from a dealer.
 4310         2. Collect eligible contributions.
 4311         3. Using a form provided by the Department of Revenue,
 4312  which shall include the dealer’s or agent’s federal employer
 4313  identification number, remit to an organization no later than
 4314  the date the return filed pursuant to s. 212.11 is due the total
 4315  amount of contributions made to that organization and collected
 4316  during the preceding reporting period. Using the same form, the
 4317  dealer or agent shall also report this information to the
 4318  Department of Revenue no later than the date the return filed
 4319  pursuant to s. 212.11 is due.
 4320         4. report to the Department of Revenue on each return filed
 4321  pursuant to s. 212.11 the total amount of credits granted under
 4322  s. 212.1832 for the preceding reporting period.
 4323         (c) An organization shall report to The Department of
 4324  Revenue shall deposit all receipts designated as eligible
 4325  contributions into a designated student fund, on or before the
 4326  20th day of each month, the total amount of contributions
 4327  received pursuant to paragraph (b) in the preceding calendar
 4328  month on a form provided by the Department of Revenue. Such
 4329  report shall include:
 4330         1. The federal employer identification number of each
 4331  designated agent, private tag agent, or dealer who remitted
 4332  contributions to the organization during that reporting period.
 4333         2. The amount of contributions received from each
 4334  designated agent, private tag agent, or dealer during that
 4335  reporting period.
 4336         (d) A person who, with the intent to unlawfully deprive or
 4337  defraud the program of its moneys or the use or benefit thereof,
 4338  fails to remit a contribution collected under this section is
 4339  guilty of theft, punishable as follows:
 4340         1. If the total amount stolen is less than $300, the
 4341  offense is a misdemeanor of the second degree, punishable as
 4342  provided in s. 775.082 or s. 775.083. Upon a second conviction,
 4343  the offender is guilty of a misdemeanor of the first degree,
 4344  punishable as provided in s. 775.082 or s. 775.083. Upon a third
 4345  or subsequent conviction, the offender is guilty of a felony of
 4346  the third degree, punishable as provided in s. 775.082, s.
 4347  775.083, or s. 775.084.
 4348         2. If the total amount stolen is $300 or more, but less
 4349  than $20,000, the offense is a felony of the third degree,
 4350  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 4351         3. If the total amount stolen is $20,000 or more, but less
 4352  than $100,000, the offense is a felony of the second degree,
 4353  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 4354         4. If the total amount stolen is $100,000 or more, the
 4355  offense is a felony of the first degree, punishable as provided
 4356  in s. 775.082, s. 775.083, or s. 775.084.
 4357         (e) A person convicted of an offense under paragraph (d)
 4358  shall be ordered by the sentencing judge to make restitution to
 4359  the organization in the amount that was stolen from the program.
 4360         (f) Upon a finding that a dealer failed to remit a
 4361  contribution under subparagraph (b)3. for which the dealer
 4362  claimed a credit pursuant to s. 212.1832(2), the Department of
 4363  Revenue shall notify the affected organizations of the dealer’s
 4364  name, address, federal employer identification number, and
 4365  information related to differences between credits taken by the
 4366  dealer pursuant to s. 212.1832(2) and amounts remitted to the
 4367  eligible nonprofit scholarship-funding organization under
 4368  subparagraph (b)3.
 4369         (g) Any dealer, designated agent, private tag agent, or
 4370  organization that fails to timely submit reports to the
 4371  Department of Revenue as required in paragraphs (b) and (c) is
 4372  subject to a penalty of $1,000 for every month, or part thereof,
 4373  the report is not provided, up to a maximum amount of $10,000.
 4374  Such penalty shall be collected by the Department of Revenue and
 4375  shall be transferred into the General Revenue Fund. Such penalty
 4376  must be settled or compromised if it is determined by the
 4377  Department of Revenue that the noncompliance is due to
 4378  reasonable cause and not due to willful negligence, willful
 4379  neglect, or fraud.
 4380         (14) LIABILITY.—The state is not liable for the award of or
 4381  any use of awarded funds under this section.
 4382         (15) SCOPE OF AUTHORITY.—This section does not expand the
 4383  regulatory authority of this state, its officers, or any school
 4384  district to impose additional regulation on participating
 4385  private schools beyond those reasonably necessary to enforce
 4386  requirements expressly set forth in this section.
 4387         (3)(16) RULES.—The State Board of Education shall adopt
 4388  rules to administer this section, except the Department of
 4389  Revenue shall adopt rules to administer this section subsection
 4390  (13).
 4391         Section 22. Subsection (4) of section 1002.411, Florida
 4392  Statutes, is amended to read:
 4393         1002.411 Reading scholarship accounts.—
 4394         (4) ADMINISTRATION.—An eligible nonprofit scholarship
 4395  funding organization participating in a scholarship program
 4396  under this chapter the Florida Tax Credit Scholarship Program
 4397  established by s. 1002.395 may establish reading scholarship
 4398  accounts for eligible students in accordance with the
 4399  requirements of eligible nonprofit scholarship-funding
 4400  organizations under this chapter.
 4401         Section 23. Paragraphs (i) and (q) of subsection (1) of
 4402  section 1002.421, Florida Statutes, are amended to read:
 4403         1002.421 State school choice scholarship program
 4404  accountability and oversight.—
 4405         (1) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—A private
 4406  school participating in an educational scholarship program
 4407  established pursuant to this chapter must be a private school as
 4408  defined in s. 1002.01(2) in this state, be registered, and be in
 4409  compliance with all requirements of this section in addition to
 4410  private school requirements outlined in s. 1002.42, specific
 4411  requirements identified within respective scholarship program
 4412  laws, and other provisions of Florida law that apply to private
 4413  schools, and must:
 4414         (i) Maintain a physical location in the state at which each
 4415  student has regular and direct contact with teachers. A private
 4416  virtual school with at least one administrative office located
 4417  in this state which requires all of its administrative staff to
 4418  be Florida residents meets this requirement.
 4419         (q) Provide a report from an independent certified public
 4420  accountant who performs the agreed-upon procedures developed
 4421  pursuant to s. 1002.394(11)(g) s. 1002.395(6)(o) if the private
 4422  school receives more than $250,000 in funds from scholarships
 4423  awarded under this chapter in a state fiscal year. A private
 4424  school subject to this subsection must annually submit the
 4425  report by September 15 to the scholarship-funding organization
 4426  that awarded the majority of the school’s scholarship funds.
 4427  However, for the 2020-2021 school year only, a school that
 4428  receives more than $250,000 in scholarship funds only through
 4429  the John M. McKay Scholarship for Students with Disabilities
 4430  Program pursuant to s. 1002.39 must submit the annual report by
 4431  September 15 to the department. The agreed-upon procedures must
 4432  be conducted in accordance with attestation standards
 4433  established by the American Institute of Certified Public
 4434  Accountants.
 4435  
 4436  The department shall suspend the payment of funds to a private
 4437  school that knowingly fails to comply with this subsection, and
 4438  shall prohibit the school from enrolling new scholarship
 4439  students, for 1 fiscal year and until the school complies. If a
 4440  private school fails to meet the requirements of this subsection
 4441  or has consecutive years of material exceptions listed in the
 4442  report required under paragraph (q), the commissioner may
 4443  determine that the private school is ineligible to participate
 4444  in a scholarship program.
 4445         Section 24. Paragraph (aa) of subsection (4) of section
 4446  1009.971, Florida Statutes, is amended to read:
 4447         1009.971 Florida Prepaid College Board.—
 4448         (4) FLORIDA PREPAID COLLEGE BOARD; POWERS AND DUTIES.—The
 4449  board shall have the powers and duties necessary or proper to
 4450  carry out the provisions of ss. 1009.97-1009.988, including, but
 4451  not limited to, the power and duty to:
 4452         (aa) Adopt rules relating to the purchase and use of a
 4453  prepaid college plan authorized under s. 1009.98 or a college
 4454  savings plan authorized under s. 1009.981 for the McKay-Gardiner
 4455  Gardiner Scholarship Program pursuant to s. 1002.381 or the
 4456  Family Empowerment Scholarship Program pursuant to s. 1002.394
 4457  s. 1002.385, which may include, but need not be limited to:
 4458         1. The use of such funds for postsecondary education
 4459  programs for students with disabilities;
 4460         2. Effective procedures that allow program funds to be used
 4461  in conjunction with other funds used by a parent in the purchase
 4462  of a prepaid college plan or a college savings plan;
 4463         3. The tracking and accounting of program funds separately
 4464  from other funds contributed to a prepaid college plan or a
 4465  college savings plan;
 4466         4. The reversion of program funds, including, but not
 4467  limited to, earnings from contributions to the Florida College
 4468  Savings Plan;
 4469         5. The use of program funds only after private payments
 4470  have been used for prepaid college plan or college savings plan
 4471  expenditures;
 4472         6. Contracting with each eligible nonprofit scholarship
 4473  funding organization to establish mechanisms to implement ss.
 4474  1002.381 and 1002.394 s. 1002.385, including, but not limited
 4475  to, identifying the source of funds being deposited in the
 4476  plans; and
 4477         7. The development of a written agreement that defines the
 4478  owner and beneficiary of an account and outlines
 4479  responsibilities for the use of the advance payment contract
 4480  funds or savings program funds.
 4481         Section 25. Subsection (11) of section 1009.98, Florida
 4482  Statutes, is amended to read:
 4483         1009.98 Stanley G. Tate Florida Prepaid College Program.—
 4484         (11) IMPLEMENTATION PROCEDURES.—
 4485         (a) A prepaid college plan may be purchased, accounted for,
 4486  used, and terminated as provided in ss. 1002.381 and 1002.394 s.
 4487  1002.385.
 4488         (b) A qualified beneficiary may apply the benefits of an
 4489  advance payment contract toward the program fees of a program
 4490  designed for students with disabilities conducted by a state
 4491  postsecondary institution. A transfer authorized under this
 4492  subsection may not exceed the redemption value of the advance
 4493  payment contract at a state postsecondary institution or the
 4494  number of semester credit hours contracted on behalf of a
 4495  qualified beneficiary. A qualified beneficiary may not be
 4496  changed while a prepaid college plan contains funds contributed
 4497  under ss. 1002.381 and 1002.394 s. 1002.385.
 4498         Section 26. Subsection (10) of section 1009.981, Florida
 4499  Statutes, is amended to read:
 4500         1009.981 Florida College Savings Program.—
 4501         (10) IMPLEMENTATION PROCEDURES.—
 4502         (a) A college savings plan may be purchased, accounted for,
 4503  used, and terminated as provided in ss. 1002.381 and 1002.394 s.
 4504  1002.385.
 4505         (b) A designated beneficiary may apply the benefits of a
 4506  participation agreement toward the program fees of a program
 4507  designed for students with disabilities conducted by a state
 4508  postsecondary institution. A designated beneficiary may not be
 4509  changed while a college savings plan contains funds contributed
 4510  under ss. 1002.381 and 1002.394 s. 1002.385.
 4511         Section 27. Subsection (4) of section 1011.61, Florida
 4512  Statutes, is amended to read:
 4513         1011.61 Definitions.—Notwithstanding the provisions of s.
 4514  1000.21, the following terms are defined as follows for the
 4515  purposes of the Florida Education Finance Program:
 4516         (4) The maximum value for funding a student in kindergarten
 4517  through grade 12 or in a prekindergarten program for exceptional
 4518  children as provided in s. 1003.21(1)(e) shall be the sum of the
 4519  calculations in paragraphs (a), (b), and (c) as calculated by
 4520  the department.
 4521         (a) The sum of the student’s full-time equivalent student
 4522  membership value for the school year or the equivalent derived
 4523  from paragraphs (1)(a) and (b), subparagraph (1)(c)1., sub
 4524  subparagraphs (1)(c)2.b. and c., subparagraph (1)(c)3., and
 4525  subsection (2). If the sum is greater than 1.0, the full-time
 4526  equivalent student membership value for each program or course
 4527  shall be reduced by an equal proportion so that the student’s
 4528  total full-time equivalent student membership value is equal to
 4529  1.0.
 4530         (b) If the result in paragraph (a) is less than 1.0 full
 4531  time equivalent student and the student has full-time equivalent
 4532  student enrollment pursuant to sub-sub-subparagraph
 4533  (1)(c)1.b.(VIII), calculate an amount that is the lesser of the
 4534  value in sub-sub-subparagraph (1)(c)1.b.(VIII) or the value of
 4535  1.0 less the value in paragraph (a).
 4536         (c) The full-time equivalent student enrollment value in
 4537  sub-subparagraph (1)(c)2.a.
 4538  
 4539  A scholarship award provided to a student enrolled in the John
 4540  M. McKay Scholarships for Students with Disabilities Program
 4541  pursuant to s. 1002.39 is not subject to the maximum value for
 4542  funding a student under this subsection.
 4543         Section 28. Paragraph (f) of subsection (18) of section
 4544  1011.62, Florida Statutes, is amended to read:
 4545         1011.62 Funds for operation of schools.—If the annual
 4546  allocation from the Florida Education Finance Program to each
 4547  district for operation of schools is not determined in the
 4548  annual appropriations act or the substantive bill implementing
 4549  the annual appropriations act, it shall be determined as
 4550  follows:
 4551         (18) TEACHER SALARY INCREASE ALLOCATION.—The Legislature
 4552  may annually provide in the Florida Education Finance Program a
 4553  teacher salary increase allocation to assist school districts in
 4554  their recruitment and retention of classroom teachers and other
 4555  instructional personnel. The amount of the allocation shall be
 4556  specified in the General Appropriations Act.
 4557         (f) Notwithstanding any other provision of law, funds
 4558  allocated under this subsection shall not be included in the
 4559  calculated amount for any scholarship awarded under chapter
 4560  1002.
 4561         Section 29. This act shall take effect July 1, 2021.