Florida Senate - 2021                        CS for CS for SB 48
       
       
        
       By the Committees on Appropriations; and Education; and Senators
       Diaz, Brandes, Garcia, Baxley, and Perry
       
       
       
       
       576-02416-21                                            202148c2
    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         granting a credit against the state portion of certain
   15         taxes to eligible businesses; requiring dealers to
   16         remit any contributions of designated amounts from an
   17         eligible business; revising the circumstances under
   18         which dealers reduce the collection of taxes from
   19         certain businesses; requiring the Department of
   20         Revenue to provide eligible businesses that make a
   21         contribution with a receipt during a certain
   22         timeframe; requiring a dealer to identify on the
   23         dealer’s return the amount of an eligible
   24         contribution; requiring dealers to remit to the
   25         Department of Revenue specified contributions;
   26         requiring the Department of Revenue to ensure that
   27         certain receipts are deposited into a specified fund;
   28         conforming provisions to changes made by the act;
   29         amending s. 212.1831, F.S.; conforming provisions to
   30         changes made by the act; amending s. 212.1832, F.S.;
   31         defining terms; requiring dealers claiming certain tax
   32         credits to file and pay returns electronically;
   33         requiring specified persons to report to the
   34         Department of Revenue on certain returns the amount of
   35         credits granted for the preceding reporting period;
   36         requiring such persons to remit eligible contributions
   37         to the Department of Revenue during a certain
   38         timeframe; requiring the Department of Revenue to
   39         adopt rules; conforming provisions to changes made by
   40         the act; amending s. 213.053, F.S.; deleting
   41         authorization for the Department of Revenue to provide
   42         specified information to certain entities; deleting
   43         definitions; amending ss. 220.1105, 220.13, 220.186,
   44         220.1875, 561.1211, 624.51055, and 1002.20, F.S.;
   45         conforming provisions to changes made by the act;
   46         amending s. 1002.23, F.S.; correcting a reference to
   47         the Florida Virtual School; conforming a provision to
   48         changes made by the act; amending s. 1002.31, F.S.;
   49         adding certain students to those to whom district
   50         school boards must provide preferential treatment in
   51         the controlled open enrollment process; creating s.
   52         1002.381, F.S.; establishing the McKay-Gardiner
   53         Scholarship Program; providing the purpose of the
   54         program; defining terms; specifying eligibility
   55         requirements; providing criteria for authorized uses
   56         of program funds; providing the terms of a program
   57         scholarship; requiring certain scholarship accounts to
   58         be closed and for specified funds to revert to the
   59         state under specified circumstances; providing school
   60         district obligations under the program; specifying
   61         obligations for eligible private schools; providing
   62         Department of Education obligations relating to the
   63         program; specifying Commissioner of Education
   64         authority and obligations; providing parent and
   65         student responsibilities for program participation;
   66         providing an application approval and renewal process
   67         for charitable organizations seeking to participate or
   68         remain in the program; establishing a procedure for
   69         when an organization is disapproved; providing that an
   70         organization is a renewing organization if it was
   71         approved by the State Board of Education for a certain
   72         fiscal year or after and maintains continuous approval
   73         and participation in the program; requiring the state
   74         board to adopt specified rules; exempting specified
   75         entities from the initial or renewal application
   76         process; providing obligations for organizations
   77         relating to establishing program scholarships;
   78         providing eligibility and obligations for transition
   79         to-work programs; specifying requirements for
   80         scholarship funding and payment; specifying the
   81         initial maximum number of student FTE; providing for
   82         the annual increase of the maximum number of student
   83         FTE; requiring the department to transfer certain
   84         funds to organizations in a specified manner;
   85         clarifying that accrued interest in student accounts
   86         is in addition to, and not part of, awarded funds;
   87         authorizing organizations to develop systems for
   88         payment of benefits by funds transfer; prohibiting
   89         organizations that develop such systems from reducing
   90         scholarship awards through certain fees; clarifying
   91         that scholarship funds do not constitute taxable
   92         income to the qualified student or to his or her
   93         parent; requiring the Auditor General to conduct
   94         certain audits at least once every 3 years; specifying
   95         obligations related to approved providers; providing
   96         that the state is not liable for the award or use of
   97         program funds; providing construction; requiring the
   98         State Board of Education to adopt rules; repealing ss.
   99         1002.385 and 1002.39, F.S., relating to the Gardiner
  100         Scholarship and the John M. McKay Scholarships for
  101         Students with Disabilities Program, respectively;
  102         amending s. 1002.394, F.S.; revising the Family
  103         Empowerment Scholarship Program; providing and
  104         revising definitions; specifying and revising
  105         eligibility requirements; revising the priority order
  106         for awarding scholarships; providing and revising
  107         terms for scholarship payments to organizations;
  108         providing circumstances under which a student’s
  109         account must be closed and remaining funds revert to
  110         the state; specifying the purposes for which such
  111         funds may be used; providing and revising school
  112         district obligations; providing and revising
  113         department obligations relating to participating
  114         students; requiring the department to verify eligible
  115         expenditures before distributing funds; requiring the
  116         department to issue a project grant award to a state
  117         university for a certain purpose; specifying the
  118         duration of the grant and the maximum dollar amount;
  119         requiring the university to annually report data on
  120         student performance to the department; requiring the
  121         department to publish the report on its website;
  122         specifying other department requirements pertaining to
  123         approved providers, verification of certain
  124         expenditures, reports from eligible nonprofit
  125         scholarship-funding organizations, and contracting
  126         with an independent entity to evaluate the program
  127         annually; requiring the department to investigate
  128         certain complaints; requiring the department to
  129         establish and coordinate an FTE reporting process;
  130         providing and revising obligations for eligible
  131         private schools; providing and revising parent and
  132         student obligations for initial and continued
  133         participation in the program; providing and revising
  134         nonprofit scholarship-funding organization obligations
  135         relating to participating in the program; specifying
  136         Auditor General obligations; expanding eligibility to
  137         specified students who received certain scholarships
  138         in a specified school year; clarifying that certain
  139         scholarships do not count toward the maximum number of
  140         eligible students; providing the manner in which funds
  141         will be allocated; requiring the department to verify
  142         that a student is not prohibited from receiving a
  143         scholarship upon notification from an organization
  144         that an application has been approved; requiring the
  145         organization to provide the department with the
  146         documentation necessary to verify the student’s
  147         participation; requiring the department to release the
  148         student’s scholarship funds to the organization to be
  149         deposited into the student’s account upon
  150         verification; clarifying that accrued interest is in
  151         addition to, and not part of, awarded funds;
  152         authorizing organizations to develop a system for
  153         payment of benefits by funds transfer; prohibiting
  154         scholarship awards from being reduced by certain fees;
  155         clarifying that scholarship funds do not constitute
  156         taxable income to the qualified student or to his or
  157         her parent; requiring the Auditor General to conduct
  158         certain audits at least once every 3 years; providing
  159         an application approval and renewal process for
  160         charitable organizations seeking to participate or
  161         remain in the program; establishing a procedure for
  162         when an organization is disapproved; providing that an
  163         organization is a renewing organization if it was
  164         approved by the state board for a certain fiscal year
  165         or after and maintains continuous approval and
  166         participation in the program; requiring the state
  167         board to adopt rules; exempting specified entities
  168         from the initial or renewal application process;
  169         providing certain authority and obligations of the
  170         Commissioner of Education; deleting an obsolete
  171         implementation schedule; amending s. 1002.395, F.S.;
  172         repealing the Florida Tax Credit Scholarship Program;
  173         revising legislative findings; revising and deleting
  174         terms; deleting provisions made obsolete by the act;
  175         retaining the tax credits available under the former
  176         scholarship program; specifying the manner in which a
  177         taxpayer may elect to make eligible contributions;
  178         requiring all eligible contributions received by the
  179         department and the division to be deposited into a
  180         specified fund; requiring the Department of Revenue to
  181         adopt rules; authorizing the Division of Alcoholic
  182         Beverages and Tobacco to adopt rules; repealing s.
  183         1002.40, F.S., relating to the Hope Scholarship
  184         Program; amending s. 1002.411, F.S.; conforming a
  185         provision to changes made by the act; amending s.
  186         1002.421, F.S.; providing that private virtual schools
  187         meet the requirement to maintain a physical location
  188         in this state if such virtual schools maintain at
  189         least one administrative office in a specified manner;
  190         requiring certain private schools to provide reports
  191         from a specified public accountant; providing
  192         requirements for such reports; requiring the schools
  193         to provide parents and students with specified
  194         information; amending ss. 1009.971, 1009.98, 1009.981,
  195         and 1011.61, F.S.; conforming provisions to changes
  196         made by the act; amending s. 1011.62, F.S.; deleting a
  197         provision requiring that certain funds not be included
  198         in the calculated amount for certain scholarship
  199         awards; creating s. 1011.687, F.S.; establishing an
  200         allocation within the Florida Education Finance
  201         Program for certain scholarship programs; providing
  202         requirements for certain allocations of tax credits;
  203         clarifying that certain requirements apply to
  204         allocations of credit received before a certain date;
  205         authorizing the Department of Revenue to contract with
  206         a qualified vendor without using a competitive
  207         solicitation process; providing an appropriation;
  208         providing the department with emergency rulemaking
  209         authority; providing effective dates.
  210          
  211  Be It Enacted by the Legislature of the State of Florida:
  212  
  213         Section 1. Paragraph (l) of subsection (2) and subsection
  214  (8) of section 11.45, Florida Statutes, are amended to read:
  215         11.45 Definitions; duties; authorities; reports; rules.—
  216         (2) DUTIES.—The Auditor General shall:
  217         (l) At least every 3 years, Annually conduct operational
  218  audits of the accounts and records of eligible nonprofit
  219  scholarship-funding organizations receiving eligible
  220  contributions under ss. 1002.381 and 1002.394 s. 1002.395,
  221  including any contracts for services with related entities, to
  222  determine compliance with the provisions of those sections that
  223  section. Such audits must shall include, but need not be limited
  224  to, a determination of the eligible nonprofit scholarship
  225  funding organization’s compliance with ss. 1002.381(13)(f) and
  226  1002.394(11)(k) s. 1002.395(6)(j). The Auditor General shall
  227  provide its report on the results of the audits to the Governor,
  228  the President of the Senate, the Speaker of the House of
  229  Representatives, the Chief Financial Officer, and the
  230  Legislative Auditing Committee, within 30 days of completion of
  231  the audit.
  232  
  233  The Auditor General shall perform his or her duties
  234  independently but under the general policies established by the
  235  Legislative Auditing Committee. This subsection does not limit
  236  the Auditor General’s discretionary authority to conduct other
  237  audits or engagements of governmental entities as authorized in
  238  subsection (3).
  239         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
  240  consultation with the Board of Accountancy, shall adopt rules
  241  for the form and conduct of all financial audits performed by
  242  independent certified public accountants pursuant to ss.
  243  215.981, 218.39, 1001.453, 1002.381, 1002.394 1002.395, 1004.28,
  244  and 1004.70. The rules for audits of local governmental
  245  entities, charter schools, charter technical career centers, and
  246  district school boards must include, but are not limited to,
  247  requirements for the reporting of information necessary to carry
  248  out the purposes of the Local Governmental Entity, Charter
  249  School, Charter Technical Career Center, and District School
  250  Board Financial Emergencies Act as stated in s. 218.501.
  251         Section 2. Section 211.0251, Florida Statutes, is amended
  252  to read:
  253         211.0251 Credit for contributions for K-12 education to
  254  eligible nonprofit scholarship-funding organizations.—There is
  255  allowed a credit of 100 percent of an eligible contribution
  256  directed made to K-12 education an eligible nonprofit
  257  scholarship-funding organization under s. 1002.395 for against
  258  any tax due under s. 211.02 or s. 211.025. However, a credit
  259  allowed under this section may not exceed 50 percent of the tax
  260  due on the return the credit is taken. For purposes of the
  261  distributions of tax revenue under s. 211.06, the department
  262  shall disregard any tax credits allowed under this section to
  263  ensure that any reduction in tax revenue received which is
  264  attributable to the tax credits results only in a reduction in
  265  distributions to the General Revenue Fund. The provisions of s.
  266  1002.395 apply to the credit authorized by this section.
  267         Section 3. Section 212.099, Florida Statutes, is amended to
  268  read:
  269         212.099 Credit for contributions for K-12 education to
  270  eligible nonprofit scholarship-funding organizations.—
  271         (1) As used in this section, the term:
  272         (a) “Eligible business” means a tenant or person actually
  273  occupying, using, or entitled to the use of any property from
  274  which the rental or license fee is subject to taxation under s.
  275  212.031.
  276         (b) “Eligible contribution” or “contribution” means the
  277  amount of tax, or portion thereof, designated for K-12 education
  278  by an eligible business and paid by a monetary contribution from
  279  an eligible business to, for the period of July 1, 2021, through
  280  December 31, 2021, the department or as otherwise directed by
  281  the department, and thereafter, to a collecting dealer to an
  282  eligible nonprofit scholarship-funding organization to be used
  283  pursuant to s. 1002.395. The eligible business making the
  284  contribution may not designate a specific student as the
  285  beneficiary of the contribution.
  286         (c) “Eligible nonprofit scholarship-funding organization”
  287  or “organization” has the same meaning as provided in s.
  288  1002.395(2)(f).
  289         (2) An eligible business shall be granted a credit against
  290  the state portion of the tax imposed under s. 212.031 and
  291  collected from the eligible business by a dealer. The credit
  292  shall be in an amount equal to 100 percent of an eligible
  293  contribution made to an organization.
  294         (3) A dealer shall take a credit against the tax imposed
  295  under s. 212.031 in an amount equal to the credit taken by the
  296  eligible business under subsection (2). The dealer shall also
  297  remit to the department any contributions of designated amounts
  298  it receives from an eligible business.
  299         (4)(a) An eligible business must apply to the department
  300  for an allocation of tax credits under this section. The
  301  eligible business must specify in the application the state
  302  fiscal year during which the contribution will be made, the
  303  organization that will receive the contribution, the planned
  304  amount of the contribution, the address of the property from
  305  which the rental or license fee is subject to taxation under s.
  306  212.031, and the federal employer identification number of the
  307  dealer who collects the tax imposed under s. 212.031 from the
  308  eligible business and who will, during the period of July 1,
  309  2021, through December 31, 2021, reduce collection of taxes from
  310  the eligible business if the eligible business provides the
  311  dealer with a receipt of contribution as described in paragraph
  312  (b) pursuant to this section. The department shall approve
  313  allocations of tax credits on a first-come, first-served basis
  314  and shall provide to the eligible business a separate approval
  315  or denial letter for each dealer for which the eligible business
  316  applied for an allocation of tax credits. Within 10 days after
  317  approving or denying an application, the department shall
  318  provide a copy of its approval or denial letter to the
  319  organization specified by the eligible business in the
  320  application. An approval letter must include the name and
  321  federal employer identification number of the dealer from whom a
  322  credit under this section can be taken and the amount of tax
  323  credits approved for use with that dealer.
  324         (b) For the period of July 1, 2021, through December 31,
  325  2021, upon receipt of an eligible contribution from an eligible
  326  business, the department organization shall provide the eligible
  327  business that made the contribution with a receipt separate
  328  certificate of contribution for each dealer from whom a credit
  329  can be taken as approved under paragraph (a). A receipt
  330  certificate of contribution must include the contributor’s name
  331  and, if available, federal employer identification number, the
  332  amount contributed, the date of contribution, the name of the
  333  organization, and the name and federal employer identification
  334  number of the dealer.
  335         (5) Each dealer that receives from an eligible business a
  336  copy of the department’s approval letter, and until December 31,
  337  2021, the receipt and a certificate of contribution, both of
  338  which identify the dealer as the dealer who collects the tax
  339  imposed under s. 212.031 from the eligible business and who will
  340  reduce collection of taxes from the eligible business pursuant
  341  to this section, shall identify on the dealer’s return the
  342  amount of the eligible contribution by reduce the tax collected
  343  from the eligible business, which amount under s. 212.031 by the
  344  total amount of contributions indicated in the certificate of
  345  contribution. The reduction may not exceed the amount of credit
  346  allocation approved by the department and may not exceed the
  347  amount of tax that would otherwise be collected from the
  348  eligible business by a dealer when a payment is made under the
  349  rental or license fee arrangement. The dealer shall also remit
  350  to the department any contributions of designated amounts for K
  351  12 education it receives from an eligible business on the
  352  dealer’s return However, payments by an eligible business to a
  353  dealer may not be reduced before October 1, 2018.
  354         (a) If the total amount of credits an eligible business may
  355  take cannot be fully used within any period that a payment is
  356  due under the rental or license fee arrangement because of an
  357  insufficient amount of tax that the dealer would collect from
  358  the eligible business during that period, the unused amount may
  359  be carried forward for a period not to exceed 10 years.
  360         (b) A tax credit may not be claimed on an amended return or
  361  through a refund.
  362         (c) A dealer that claims a tax credit must file returns and
  363  pay taxes by electronic means under s. 213.755.
  364         (d) An eligible business may not convey, assign, or
  365  transfer an approved tax credit or a carryforward tax credit to
  366  another entity unless all of the assets of the eligible business
  367  are conveyed, assigned, or transferred in the same transaction
  368  and the successor business continues the same lease with the
  369  dealer.
  370         (e) Within any state fiscal year, an eligible business may
  371  rescind all or part of a tax credit allocation approved under
  372  this section. The amount rescinded shall become available for
  373  that state fiscal year to another eligible business as approved
  374  by the department if the business receives notice from the
  375  department that the rescindment has been accepted by the
  376  department. Any amount rescinded under this subsection shall
  377  become available to an eligible business on a first-come, first
  378  served basis based on tax credit applications received after the
  379  date the rescindment is accepted by the department.
  380         (f) Within 10 days after the rescindment of a tax credit
  381  under paragraph (e) is accepted by the department, the
  382  department shall notify the eligible nonprofit scholarship
  383  funding organization specified by the eligible business. The
  384  department shall also include the eligible nonprofit
  385  scholarship-funding organization specified by the eligible
  386  business on all letters or correspondence of acknowledgment for
  387  tax credits under this section.
  388         (6) An organization shall report to the department, on or
  389  before the 20th day of each month, the total amount of
  390  contributions received pursuant to subsection (4) in the
  391  preceding calendar month on a form provided by the department.
  392  Such report shall include the amount of contributions received
  393  during that reporting period and the federal employer
  394  identification number of each dealer associated with the
  395  contribution.
  396         (7)(a) Eligible contributions may be used to fund the
  397  program established under s. 1002.395.
  398         (b) The organization shall separately account for each
  399  scholarship funded pursuant to this section.
  400         (c) The organization may, subject to the limitations of s.
  401  1002.395(6)(j)1., use eligible contributions received during the
  402  state fiscal year in which such contributions are collected for
  403  administrative expenses.
  404         (8) The sum of tax credits that may be approved by the
  405  department in any state fiscal year is $57.5 million.
  406         (7)(9)The department shall ensure that receipts designated
  407  by a remitting dealer as eligible contributions under this
  408  section and eligible contributions transferred to the state by
  409  an organization are deposited into the Florida K-12 Education
  410  Tax Credit Program Trust Fund and used in accordance with s.
  411  1010.88. For purposes of the distributions of tax revenue under
  412  s. 212.20, the department shall disregard any tax credits
  413  allowed under this section to ensure that any reduction in tax
  414  revenue received that is attributable to the tax credits results
  415  only in a reduction in distributions to the General Revenue
  416  Fund.
  417         (8)(10) The department may adopt rules to administer this
  418  section.
  419         Section 4. Section 212.1831, Florida Statutes, is amended
  420  to read:
  421         212.1831 Credit for contributions for K-12 education to
  422  eligible nonprofit scholarship-funding organizations.—There is
  423  allowed a credit of 100 percent of an eligible contribution made
  424  to an eligible nonprofit scholarship-funding organization under
  425  s. 1002.395 against the state portion of the tax any tax imposed
  426  by the state and due under this chapter from a direct pay permit
  427  holder as a result of the direct pay permit held pursuant to s.
  428  212.183. For purposes of the dealer’s credit granted for keeping
  429  prescribed records, filing timely tax returns, and properly
  430  accounting and remitting taxes under s. 212.12, the amount of
  431  tax due used to calculate the credit shall include any eligible
  432  contribution made to an eligible nonprofit scholarship-funding
  433  organization from a direct pay permit holder. For purposes of
  434  the distributions of tax revenue under s. 212.20, the department
  435  shall disregard any tax credits allowed under this section to
  436  ensure that any reduction in tax revenue received that is
  437  attributable to the tax credits results only in a reduction in
  438  distributions to the General Revenue Fund. The provisions of s.
  439  1002.395 apply to the credit authorized by this section.
  440         Section 5. Section 212.1832, Florida Statutes, is amended
  441  to read:
  442         212.1832 Credit for contributions for K-12 education to
  443  eligible nonprofit scholarship-funding organizations.—
  444         (1) As used in this section, the term:
  445         (a) “Dealer” has the same meaning as provided in s. 212.06.
  446         (b) “Designated agent” has the same meaning as provided in
  447  s. 212.06(10).
  448         (c) “Eligible contribution” or “contribution” means the
  449  amount of tax paid by a person purchasing a motor vehicle,
  450  subject to the restrictions provided in this section and s.
  451  1002.395, and designated by the purchaser to be used for K-12
  452  education.
  453         (d) “Motor vehicle” has the same meaning as provided in s.
  454  320.01(1)(a), but does not include a heavy truck, truck tractor,
  455  trailer, or motorcycle.
  456         (2) The purchaser of a motor vehicle shall be granted a
  457  credit of 100 percent of an eligible contribution made to an
  458  eligible nonprofit scholarship-funding organization under s.
  459  1002.395 s. 1002.40 against any tax imposed by the state under
  460  this chapter and collected from the purchaser by a dealer,
  461  designated agent, or private tag agent as a result of the
  462  purchase or acquisition of a motor vehicle, except that a credit
  463  may not exceed the tax that would otherwise be collected from
  464  the purchaser by a dealer, designated agent, or private tag
  465  agent. For purposes of this subsection, the term “purchase” does
  466  not include the lease or rental of a motor vehicle.
  467         (3)(2) A dealer shall take a credit against any tax imposed
  468  by the state under this chapter on the purchase of a motor
  469  vehicle in an amount equal to the credit granted to the
  470  purchaser under subsection (2) (1). A dealer that claims a tax
  471  credit must file returns and pay taxes by electronic means under
  472  s. 213.755.
  473         (4)(3) For purposes of the distributions of tax revenue
  474  under s. 212.20, the department shall disregard any tax credits
  475  allowed under this section to ensure that any reduction in tax
  476  revenue received that is attributable to the tax credits results
  477  only in a reduction in distributions to the General Revenue
  478  Fund. The provisions of s. 1002.395 s. 1002.40 apply to the
  479  credit authorized by this section.
  480         (5)(a) A dealer, designated agent, or private tag agent
  481  shall report to the department on each return filed pursuant to
  482  s. 212.11 the total amount of credits granted under s. 212.1832
  483  for the preceding reporting period.
  484         (b) For eligible contributions made between July 1, 2021,
  485  and December 31, 2021, a dealer, designated agent, or private
  486  tag agent shall remit eligible contributions to the department
  487  as a payment separate from the tax due with the return filed
  488  pursuant to s. 212.11, or as otherwise directed by the
  489  department. This paragraph expires July 1, 2022.
  490         (6) The department shall adopt rules to administer this
  491  section.
  492         Section 6. Paragraph (s) of subsection (8) and subsections
  493  (21) and (22) of section 213.053, Florida Statutes, are amended
  494  to read:
  495         213.053 Confidentiality and information sharing.—
  496         (8) Notwithstanding any other provision of this section,
  497  the department may provide:
  498         (s) Information relative to ss. 211.0251, 212.1831,
  499  220.1875, 561.1211, 624.51055, and 1002.395 to the Department of
  500  Education and the Division of Alcoholic Beverages and Tobacco in
  501  the conduct of official business.
  502  
  503  Disclosure of information under this subsection shall be
  504  pursuant to a written agreement between the executive director
  505  and the agency. Such agencies, governmental or nongovernmental,
  506  shall be bound by the same requirements of confidentiality as
  507  the Department of Revenue. Breach of confidentiality is a
  508  misdemeanor of the first degree, punishable as provided by s.
  509  775.082 or s. 775.083.
  510         (21)(a) For purposes of this subsection, the term:
  511         1. “Eligible nonprofit scholarship-funding organization”
  512  means an eligible nonprofit scholarship-funding organization as
  513  defined in s. 1002.395(2) that meets the criteria in s.
  514  1002.395(6) to use up to 3 percent of eligible contributions for
  515  administrative expenses.
  516         2. “Taxpayer” has the same meaning as in s. 220.03, unless
  517  disclosure of the taxpayer’s name and address would violate any
  518  term of an information-sharing agreement between the department
  519  and an agency of the Federal Government.
  520         (b) The department, upon request, shall provide to an
  521  eligible nonprofit scholarship-funding organization that
  522  provides scholarships under s. 1002.395 a list of the 200
  523  taxpayers with the greatest total corporate income or franchise
  524  tax due as reported on the taxpayer’s return filed pursuant to
  525  s. 220.22 during the previous calendar year. The list must be in
  526  alphabetical order based on the taxpayer’s name and shall
  527  contain the taxpayer’s address. The list may not disclose the
  528  amount of tax owed by any taxpayer.
  529         (c) An eligible nonprofit scholarship-funding organization
  530  may request the list once each calendar year. The department
  531  shall provide the list within 45 days after the request is made.
  532         (d) Any taxpayer information contained in the list may be
  533  used by the eligible nonprofit scholarship-funding organization
  534  only to notify the taxpayer of the opportunity to make an
  535  eligible contribution to the Florida Tax Credit Scholarship
  536  Program under s. 1002.395. Any information furnished to an
  537  eligible nonprofit scholarship-funding organization under this
  538  subsection may not be further disclosed by the organization
  539  except as provided in this paragraph.
  540         (e) An eligible nonprofit scholarship-funding organization,
  541  its officers, and employees are subject to the same requirements
  542  of confidentiality and the same penalties for violating
  543  confidentiality as the department and its employees. Breach of
  544  confidentiality is a misdemeanor of the first degree, punishable
  545  as provided by s. 775.082 or s. 775.083.
  546         (22)(a) The department may provide to an eligible nonprofit
  547  scholarship-funding organization, as defined in s. 1002.40, a
  548  dealer’s name, address, federal employer identification number,
  549  and information related to differences between credits taken by
  550  the dealer pursuant to s. 212.1832(2) and amounts remitted to
  551  the eligible nonprofit scholarship-funding organization under s.
  552  1002.40(13)(b)3. The eligible nonprofit scholarship-funding
  553  organization may use the information for purposes of recovering
  554  eligible contributions designated for that organization that
  555  were collected by the dealer but never remitted to the
  556  organization.
  557         (b) Nothing in this subsection authorizes the disclosure of
  558  information if such disclosure is prohibited by federal law. An
  559  eligible nonprofit scholarship-funding organization is bound by
  560  the same requirements of confidentiality and the same penalties
  561  for a violation of the requirements as the department.
  562         Section 7. Paragraph (a) of subsection (4) of section
  563  220.1105, Florida Statutes, is amended to read:
  564         220.1105 Tax imposed; automatic refunds and downward
  565  adjustments to tax rates.—
  566         (4) For fiscal years 2018-2019 through 2020-2021, any
  567  amount by which net collections for a fiscal year exceed
  568  adjusted forecasted collections for that fiscal year shall only
  569  be used to provide refunds to corporate income tax payers as
  570  follows:
  571         (a) For purposes of this subsection, the term:
  572         1. “Eligible taxpayer” means:
  573         a. For fiscal year 2018-2019, a taxpayer whose taxable year
  574  begins between April 1, 2017, and March 31, 2018, and whose
  575  final tax liability for such taxable year is greater than zero;
  576         b. For fiscal year 2019-2020, a taxpayer whose taxable year
  577  begins between April 1, 2018, and March 31, 2019, and whose
  578  final tax liability for such taxable year is greater than zero;
  579  or
  580         c. For fiscal year 2020-2021, a taxpayer whose taxable year
  581  begins between April 1, 2019, and March 31, 2020, and whose
  582  final tax liability for such taxable year is greater than zero.
  583         2. “Excess collections” for a fiscal year means the amount
  584  by which net collections for a fiscal year exceeds adjusted
  585  forecasted collections for that fiscal year.
  586         3. “Final tax liability” means the taxpayer’s amount of tax
  587  due under this chapter for a taxable year, reported on a return
  588  filed with the department, plus the amount of any credit taken
  589  on such return under s. 220.1875.
  590         4. “Total eligible tax liability” for a fiscal year means
  591  the sum of final tax liabilities of all eligible taxpayers for a
  592  fiscal year as such liabilities are shown on the latest return
  593  filed with the department as of February 1 immediately following
  594  that fiscal year.
  595         5. “Taxpayer refund share” for a fiscal year means an
  596  eligible taxpayer’s final tax liability as a percentage of the
  597  total eligible tax liability for that fiscal year.
  598         6. “Taxpayer refund” for a fiscal year means the taxpayer
  599  refund share for a fiscal year multiplied by the excess
  600  collections for a fiscal year.
  601         Section 8. Paragraph (a) of subsection (1) of section
  602  220.13, Florida Statutes, is amended to read:
  603         220.13 “Adjusted federal income” defined.—
  604         (1) The term “adjusted federal income” means an amount
  605  equal to the taxpayer’s taxable income as defined in subsection
  606  (2), or such taxable income of more than one taxpayer as
  607  provided in s. 220.131, for the taxable year, adjusted as
  608  follows:
  609         (a) Additions.—There shall be added to such taxable income:
  610         1.a. The amount of any tax upon or measured by income,
  611  excluding taxes based on gross receipts or revenues, paid or
  612  accrued as a liability to the District of Columbia or any state
  613  of the United States which is deductible from gross income in
  614  the computation of taxable income for the taxable year.
  615         b. Notwithstanding sub-subparagraph a., if a credit taken
  616  under s. 220.1875 is added to taxable income in a previous
  617  taxable year under subparagraph 11. and is taken as a deduction
  618  for federal tax purposes in the current taxable year, the amount
  619  of the deduction allowed shall not be added to taxable income in
  620  the current year. The exception in this sub-subparagraph is
  621  intended to ensure that the credit under s. 220.1875 is added in
  622  the applicable taxable year and does not result in a duplicate
  623  addition in a subsequent year.
  624         2. The amount of interest which is excluded from taxable
  625  income under s. 103(a) of the Internal Revenue Code or any other
  626  federal law, less the associated expenses disallowed in the
  627  computation of taxable income under s. 265 of the Internal
  628  Revenue Code or any other law, excluding 60 percent of any
  629  amounts included in alternative minimum taxable income, as
  630  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  631  taxpayer pays tax under s. 220.11(3).
  632         3. In the case of a regulated investment company or real
  633  estate investment trust, an amount equal to the excess of the
  634  net long-term capital gain for the taxable year over the amount
  635  of the capital gain dividends attributable to the taxable year.
  636         4. That portion of the wages or salaries paid or incurred
  637  for the taxable year which is equal to the amount of the credit
  638  allowable for the taxable year under s. 220.181. This
  639  subparagraph shall expire on the date specified in s. 290.016
  640  for the expiration of the Florida Enterprise Zone Act.
  641         5. That portion of the ad valorem school taxes paid or
  642  incurred for the taxable year which is equal to the amount of
  643  the credit allowable for the taxable year under s. 220.182. This
  644  subparagraph shall expire on the date specified in s. 290.016
  645  for the expiration of the Florida Enterprise Zone Act.
  646         6. The amount taken as a credit under s. 220.195 which is
  647  deductible from gross income in the computation of taxable
  648  income for the taxable year.
  649         7. That portion of assessments to fund a guaranty
  650  association incurred for the taxable year which is equal to the
  651  amount of the credit allowable for the taxable year.
  652         8. In the case of a nonprofit corporation which holds a
  653  pari-mutuel permit and which is exempt from federal income tax
  654  as a farmers’ cooperative, an amount equal to the excess of the
  655  gross income attributable to the pari-mutuel operations over the
  656  attributable expenses for the taxable year.
  657         9. The amount taken as a credit for the taxable year under
  658  s. 220.1895.
  659         10. Up to nine percent of the eligible basis of any
  660  designated project which is equal to the credit allowable for
  661  the taxable year under s. 220.185.
  662         11. The amount taken as a credit for the taxable year under
  663  s. 220.1875. The addition in this subparagraph is intended to
  664  ensure that the same amount is not allowed for the tax purposes
  665  of this state as both a deduction from income and a credit
  666  against the tax. This addition is not intended to result in
  667  adding the same expense back to income more than once.
  668         12. The amount taken as a credit for the taxable year under
  669  s. 220.193.
  670         12.13. Any portion of a qualified investment, as defined in
  671  s. 288.9913, which is claimed as a deduction by the taxpayer and
  672  taken as a credit against income tax pursuant to s. 288.9916.
  673         13.14. The costs to acquire a tax credit pursuant to s.
  674  288.1254(5) that are deducted from or otherwise reduce federal
  675  taxable income for the taxable year.
  676         14.15. The amount taken as a credit for the taxable year
  677  pursuant to s. 220.194.
  678         15.16. The amount taken as a credit for the taxable year
  679  under s. 220.196. The addition in this subparagraph is intended
  680  to ensure that the same amount is not allowed for the tax
  681  purposes of this state as both a deduction from income and a
  682  credit against the tax. The addition is not intended to result
  683  in adding the same expense back to income more than once.
  684         Section 9. Subsection (2) of section 220.186, Florida
  685  Statutes, is amended to read:
  686         220.186 Credit for Florida alternative minimum tax.—
  687         (2) The credit pursuant to this section shall be the amount
  688  of the excess, if any, of the tax paid based upon taxable income
  689  determined pursuant to s. 220.13(2)(k) over the amount of tax
  690  which would have been due based upon taxable income without
  691  application of s. 220.13(2)(k), before application of this
  692  credit without application of any credit under s. 220.1875.
  693         Section 10. Section 220.1875, Florida Statutes, is amended
  694  to read:
  695         220.1875 Credit for contributions for K-12 education to
  696  eligible nonprofit scholarship-funding organizations.—
  697         (1) There is allowed a credit of 100 percent of an eligible
  698  contribution made to an eligible nonprofit scholarship-funding
  699  organization under s. 1002.395 against any tax due for a taxable
  700  year under this chapter after the application of any other
  701  allowable credits by the taxpayer. An eligible contribution must
  702  be made when the taxpayer makes an estimated payment to an
  703  eligible nonprofit scholarship-funding organization on or before
  704  the date the taxpayer is required to file a return pursuant to
  705  s. 220.222. The credit granted by this section shall be reduced
  706  by the difference between the amount of federal corporate income
  707  tax taking into account the credit granted by this section and
  708  the amount of federal corporate income tax without application
  709  of the credit granted by this section.
  710         (2) A taxpayer who files a Florida consolidated return as a
  711  member of an affiliated group pursuant to s. 220.131(1) may be
  712  allowed the credit on a consolidated return basis; however, the
  713  total credit taken by the affiliated group is subject to the
  714  limitation established under subsection (1).
  715         (3) The provisions of s. 1002.395 apply to the credit
  716  authorized by this section.
  717         (4) If a taxpayer applies and is approved for a credit
  718  under s. 1002.395 after timely requesting an extension to file
  719  under s. 220.222(2):
  720         (a) The credit does not reduce the amount of tax due for
  721  purposes of the department’s determination as to whether the
  722  taxpayer was in compliance with the requirement to pay tentative
  723  taxes under ss. 220.222 and 220.32.
  724         (b) The taxpayer’s noncompliance with the requirement to
  725  pay tentative taxes shall result in the revocation and
  726  rescindment of any such credit.
  727         (c) The taxpayer shall be assessed for any taxes,
  728  penalties, or interest due from the taxpayer’s noncompliance
  729  with the requirement to pay tentative taxes.
  730         Section 11. Section 561.1211, Florida Statutes, is amended
  731  to read:
  732         561.1211 Credit for contributions for K-12 education to
  733  eligible nonprofit scholarship-funding organizations.—There is
  734  allowed a credit of 100 percent of an eligible contribution made
  735  to an eligible nonprofit scholarship-funding organization under
  736  s. 1002.395 against any tax due under s. 563.05, s. 564.06, or
  737  s. 565.12, except excise taxes imposed on wine produced by
  738  manufacturers in this state from products grown in this state.
  739  However, a credit allowed under this section may not exceed 90
  740  percent of the tax due on the return the credit is taken. For
  741  purposes of the distributions of tax revenue under ss. 561.121
  742  and 564.06(10), the division shall disregard any tax credits
  743  allowed under this section to ensure that any reduction in tax
  744  revenue received that is attributable to the tax credits results
  745  only in a reduction in distributions to the General Revenue
  746  Fund. The provisions of s. 1002.395 apply to the credit
  747  authorized by this section.
  748         Section 12. Section 624.51055, Florida Statutes, is amended
  749  to read:
  750         624.51055 Credit for contributions for K-12 education to
  751  eligible nonprofit scholarship-funding organizations.—
  752         (1) There is allowed a credit of 100 percent of an eligible
  753  contribution made to an eligible nonprofit scholarship-funding
  754  organization under s. 1002.395 against any tax due for a taxable
  755  year under s. 624.509(1) after deducting from such tax
  756  deductions for assessments made pursuant to s. 440.51; credits
  757  for taxes paid under ss. 175.101 and 185.08; credits for income
  758  taxes paid under chapter 220; and the credit allowed under s.
  759  624.509(5), as such credit is limited by s. 624.509(6). An
  760  eligible contribution must be made to an eligible nonprofit
  761  scholarship-funding organization on or before the date the
  762  taxpayer is required to file a return pursuant to ss. 624.509
  763  and 624.5092. An insurer claiming a credit against premium tax
  764  liability under this section shall not be required to pay any
  765  additional retaliatory tax levied pursuant to s. 624.5091 as a
  766  result of claiming such credit. Section 624.5091 does not limit
  767  such credit in any manner.
  768         (2) The provisions of s. 1002.395 apply to the credit
  769  authorized by this section.
  770         Section 13. Paragraph (a) of subsection (6) of section
  771  1002.20, Florida Statutes, is amended to read:
  772         1002.20 K-12 student and parent rights.—Parents of public
  773  school students must receive accurate and timely information
  774  regarding their child’s academic progress and must be informed
  775  of ways they can help their child to succeed in school. K-12
  776  students and their parents are afforded numerous statutory
  777  rights including, but not limited to, the following:
  778         (6) EDUCATIONAL CHOICE.—
  779         (a) Public educational school choices.—Parents of public
  780  school students may seek any public educational school choice
  781  options that are applicable and available to students throughout
  782  the state. These options may include controlled open enrollment,
  783  single-gender programs, lab schools, virtual instruction
  784  programs, charter schools, charter technical career centers,
  785  magnet schools, alternative schools, special programs, auditory
  786  oral education programs, advanced placement, dual enrollment,
  787  International Baccalaureate, International General Certificate
  788  of Secondary Education (pre-AICE), CAPE digital tools, CAPE
  789  industry certifications, collegiate high school programs,
  790  Advanced International Certificate of Education, early
  791  admissions, credit by examination or demonstration of
  792  competency, the New World School of the Arts, the Florida School
  793  for the Deaf and the Blind, and the Florida Virtual School.
  794  These options may also include the public educational choice
  795  options of the Opportunity Scholarship Program and the Family
  796  Empowerment Scholarship McKay Scholarships for Students with
  797  Disabilities Program.
  798         Section 14. Subsection (2) of section 1002.23, Florida
  799  Statutes, is amended to read:
  800         1002.23 Family and School Partnership for Student
  801  Achievement Act.—
  802         (2) To facilitate meaningful parent and family involvement,
  803  the Department of Education shall develop guidelines for a
  804  parent guide to successful student achievement which describes
  805  what parents need to know about their child’s educational
  806  progress and how they can help their child to succeed in school.
  807  The guidelines shall include, but need not be limited to:
  808         (a) Parental information regarding:
  809         1. Requirements for their child to be promoted to the next
  810  grade, as provided for in s. 1008.25;
  811         2. Progress of their child toward achieving state and
  812  district expectations for academic proficiency;
  813         3. Assessment results, including report cards and progress
  814  reports;
  815         4. Qualifications of their child’s teachers; and
  816         5. School entry requirements, including required
  817  immunizations and the recommended immunization schedule;
  818         (b) Services available for parents and their children, such
  819  as family literacy services; mentoring, tutorial, and other
  820  academic reinforcement programs; college planning, academic
  821  advisement, and student counseling services; and after-school
  822  programs;
  823         (c) Opportunities for parental participation, such as
  824  parenting classes, adult education, school advisory councils,
  825  and school volunteer programs;
  826         (d) Opportunities for parents to learn about rigorous
  827  academic programs that may be available for their child, such as
  828  honors programs, dual enrollment, advanced placement,
  829  International Baccalaureate, International General Certificate
  830  of Secondary Education (pre-AICE), Advanced International
  831  Certificate of Education, Florida Virtual High School courses,
  832  and accelerated access to postsecondary education;
  833         (e) Educational choices, as provided for in s. 1002.20(6),
  834  and Florida tax credit scholarships, as provided for in s.
  835  1002.395;
  836         (f) Classroom and test accommodations available for
  837  students with disabilities;
  838         (g) School board rules, policies, and procedures for
  839  student promotion and retention, academic standards, student
  840  assessment, courses of study, instructional materials, and
  841  contact information for school and district offices; and
  842         (h) Resources for information on student health and other
  843  available resources for parents.
  844         Section 15. Paragraph (c) of subsection (2) of section
  845  1002.31, Florida Statutes, is amended to read:
  846         1002.31 Controlled open enrollment; Public school parental
  847  choice.—
  848         (2)
  849         (c) Each district school board must provide preferential
  850  treatment in its controlled open enrollment process to all of
  851  the following:
  852         1. Dependent children of active duty military personnel
  853  whose move resulted from military orders.
  854         2. Children who have been relocated due to a foster care
  855  placement in a different school zone.
  856         3. Children who move due to a court-ordered change in
  857  custody due to separation or divorce, or the serious illness or
  858  death of a custodial parent.
  859         4. Students with an individual education plan or a 504
  860  accommodation plan under s. 504 of the Rehabilitation Act of
  861  1973 who are eligible for a McKay-Gardiner Scholarship pursuant
  862  to s. 1002.381.
  863         5. Students residing in the school district.
  864         Section 16. Section 1002.381, Florida Statutes, is created
  865  to read:
  866         1002.381 The McKay-Gardiner Scholarship Program.—
  867         (1) ESTABLISHMENT OF PROGRAM.—Beginning with the 2021-2022
  868  school year, the McKay-Gardiner Scholarship Program is
  869  established to provide the option for a parent to better meet
  870  the individual educational needs of his or her eligible child.
  871  All written explanatory materials, including state websites,
  872  scholarship organization materials, letters to parents,
  873  scholarship agreements, and any other written information
  874  describing the program to the public, must refer to a
  875  scholarship granted under this program as a “McKay-Gardiner
  876  Scholarship.”
  877         (2) DEFINITIONS.—As used in this section, the term:
  878         (a) “Approved provider” means a provider approved by the
  879  Agency for Persons with Disabilities, a health care practitioner
  880  as defined in s. 456.001, or a provider approved by the
  881  department pursuant to s. 1002.66.
  882         (b) “Curriculum” has the same meaning as provided in s.
  883  1002.394.
  884         (c) “Department” means the Department of Education.
  885         (d) “Disability” means:
  886         1. For a 3-year-old or 4-year-old child or for a student in
  887  kindergarten through grade 12, that the child has been diagnosed
  888  with any of the following: autism spectrum disorder; cerebral
  889  palsy; Down syndrome; an intellectual disability; Phelan
  890  McDermid syndrome; Prader-Willi syndrome; spina bifida; being a
  891  high-risk child, as defined in s. 393.063(23)(a); muscular
  892  dystrophy; Williams syndrome; rare diseases which affect patient
  893  populations of fewer than 200,000 individuals in the United
  894  States, as defined by the National Organization for Rare
  895  Disorders; anaphylaxis; deaf; visually impaired; traumatic
  896  brain-injured; hospital or homebound; or dual sensory impaired,
  897  as defined by rules of the State Board of Education and
  898  evidenced by reports from local school districts. As used in
  899  this subparagraph, the term “hospital or homebound” includes a
  900  student who has a medically diagnosed physical or psychiatric
  901  condition or illness, as defined by state board rule, and who is
  902  confined to the home or hospital for more than 6 months.
  903         2. For a student in kindergarten through grade 12, that the
  904  child has been diagnosed with any of the following: a speech
  905  impairment; a language impairment; a hearing impairment; an
  906  orthopedic impairment; an emotional or behavioral disability; a
  907  specific learning disability, including, but not limited to,
  908  dyslexia, dyscalculia, or developmental aphasia; or a
  909  developmental delay.
  910         (e) “Eligible nonprofit scholarship-funding organization”
  911  or “organization” means a state university; an independent
  912  college or university eligible to participate in the William L.
  913  Boyd, IV, Effective Access to Student Education Grant Program
  914  located and chartered in this state which is not for profit and
  915  is accredited by the Commission on Colleges of the Southern
  916  Association of Colleges and Schools; or a charitable
  917  organization that:
  918         1. Is exempt from federal income tax pursuant to s.
  919  501(c)(3) of the Internal Revenue Code;
  920         2. Is a Florida entity formed under chapter 605, chapter
  921  607, or chapter 617 and whose principal office is located in
  922  this state; and
  923         3. Complies with subsections (12) and (13).
  924         (f) “Eligible postsecondary educational institution” has
  925  the same meaning as provided in s. 1002.394.
  926         (g) “Eligible private school” has the same meaning as
  927  provided in s. 1002.394.
  928         (h) “IEP” means an individual education plan, regardless of
  929  whether the plan has been reviewed or revised within the last 12
  930  months.
  931         (i) “Inactive” means that no eligible expenditures have
  932  been made from a student scholarship account funded pursuant to
  933  this section.
  934         (j)“Job coach” means an individual employed to help people
  935  with disabilities learn, accommodate to, and perform their work
  936  duties.
  937         (k) “Parent” means a resident of this state who is a
  938  parent, as defined in s. 1000.21(5).
  939         (l) “Program” means the McKay-Gardiner Scholarship Program
  940  established in this section.
  941         (3) PROGRAM ELIGIBILITY.—A parent of a student with a
  942  disability may request and receive from the state a McKay
  943  Gardiner Scholarship for the purposes specified in subsection
  944  (5) if:
  945         (a) The student:
  946         1. Is a resident of this state;
  947         2. Is 3 or 4 years of age on or before September 1 of the
  948  year in which the student applies for program participation or
  949  is eligible to enroll in kindergarten through grade 12 in a
  950  public school in this state; and
  951         3. Meets at least one of the following criteria:
  952         a. Has a diagnosis of a disability from a physician who is
  953  licensed under chapter 458 or chapter 459, a psychologist who is
  954  licensed under chapter 490, or a physician who holds an active
  955  license issued by another state or territory of the United
  956  States, the District of Columbia, or the Commonwealth of Puerto
  957  Rico;
  958         b. Has an individual education plan that has been written
  959  in accordance with the rules of the State Board of Education; or
  960         c.Has a 504 accommodation plan issued under s. 504 of the
  961  Rehabilitation Act of 1973.
  962  
  963  A student with a disability who meets the requirements of
  964  subparagraph 1. and sub-subparagraph 3.a., but who turns 3 years
  965  of age after September 1, may be determined to be eligible on or
  966  after his or her third birthday and may be awarded a scholarship
  967  if program funds are available.
  968         (b) The parent has applied to an eligible nonprofit
  969  scholarship-funding organization to participate in the program
  970  by a date as set by the organization for any vacant slots. The
  971  request must be communicated directly to the organization in a
  972  manner that creates a written or electronic record of the
  973  request and the date of receipt of the request.
  974         (4) PROGRAM PROHIBITIONS.—A student is not eligible for the
  975  program if he or she is:
  976         (a) Enrolled in a public school, including, but not limited
  977  to, the Florida School for the Deaf and the Blind, the College
  978  Preparatory Boarding Academy, a developmental research school
  979  authorized under s. 1002.32, or a charter school authorized
  980  under this chapter. For purposes of this paragraph, a 3- or 4
  981  year-old child who receives services funded through the Florida
  982  Education Finance Program is considered to be a student enrolled
  983  in a public school.
  984         (b) Enrolled in a school operating for the purpose of
  985  providing educational services to youth in Department of
  986  Juvenile Justice commitment programs.
  987         (c) Issued a temporary 504 accommodation plan under s. 504
  988  of the Rehabilitation Act of 1973 which is valid for 6 months or
  989  less.
  990         (d) Receiving any other educational scholarship pursuant to
  991  this chapter.
  992         (e)Not having regular and direct contact with his or her
  993  private school teachers pursuant to s. 1002.421(1)(i), unless he
  994  or she is enrolled in the private school’s transition-to-work
  995  program pursuant to subsection (14) or a home education program
  996  pursuant to s. 1002.41.
  997         (f)Participating in a virtual school, correspondence
  998  school, or distance learning program that receives state funding
  999  pursuant to the student’s participation.
 1000         (5) AUTHORIZED USES OF PROGRAM FUNDS.—Program funds must be
 1001  used to meet the individual educational needs of an eligible
 1002  student and may be spent only for the following purposes:
 1003         (a) Instructional materials, including school equipment and
 1004  supplies, and digital devices, digital periphery devices, and
 1005  assistive technology devices that allow a student to access
 1006  instruction or instructional content; training on the use of
 1007  these devices and related maintenance agreements; and Internet
 1008  access to digital instructional materials.
 1009         (b) Curriculum.
 1010         (c) Specialized services by approved providers or by a
 1011  hospital in this state which are selected by the parent. These
 1012  specialized services may include, but are not limited to:
 1013         1. Applied behavior analysis services as provided in ss.
 1014  627.6686 and 641.31098.
 1015         2. Services provided by a speech-language pathologist as
 1016  defined in s. 468.1125(8).
 1017         3. Occupational therapy services as specified in s.
 1018  468.203.
 1019         4. Services provided by a physical therapist as defined in
 1020  s. 486.021(5).
 1021         5. Services provided by listening and spoken language
 1022  specialists and an appropriate acoustical environment for a
 1023  child who is deaf or hard of hearing and who has received an
 1024  implant or assistive hearing device.
 1025         (d) Tuition or fees associated with full-time or part-time
 1026  enrollment in any of the following:
 1027         1. A home education program, an eligible private school, an
 1028  eligible postsecondary educational institution, or a program
 1029  offered by the postsecondary institution;
 1030         2. A private tutoring program authorized under s. 1002.43,
 1031  a virtual program offered by a department-approved private
 1032  online provider that meets the provider qualifications specified
 1033  in s. 1002.45(2)(a), or a program offered by the Florida Virtual
 1034  School to a private paying student; or
 1035         3. An approved online course offered pursuant to s.
 1036  1003.499 or s. 1004.0961 or a private virtual school that meets
 1037  the requirements of s. 1002.421.
 1038         (e) Fees for nationally standardized, norm-referenced
 1039  achievement tests, Advanced Placement examinations, industry
 1040  certification examinations, assessments related to postsecondary
 1041  education, or other such assessments.
 1042         (f) Contributions to the Stanley G. Tate Florida Prepaid
 1043  College Program pursuant to s. 1009.98 or the Florida College
 1044  Savings Program pursuant to s. 1009.981, for the benefit of the
 1045  eligible student.
 1046         (g) Contracted services provided by a public school or a
 1047  school district, including classes. A student who receives
 1048  services under this paragraph is not considered enrolled in a
 1049  public school for the purpose of eligibility as provided in
 1050  subsection (4).
 1051         (h) Tuition and fees for part-time tutoring services
 1052  provided by a person who holds a valid Florida educator’s
 1053  certificate issued pursuant to s. 1012.56; a person who holds an
 1054  adjunct teaching certificate issued pursuant to s. 1012.57; a
 1055  person who has a bachelor’s degree or a graduate degree in the
 1056  subject area in which instruction is given; or a person who has
 1057  demonstrated a mastery of subject area knowledge as provided in
 1058  s. 1012.56(5) or approved by the department. Any part-time
 1059  tutoring undertaken pursuant to this paragraph does not qualify
 1060  as regular school attendance as defined in s. 1003.01(13)(e).
 1061         (i) Fees for summer education programs.
 1062         (j) Fees for after-school education programs.
 1063         (k) Transition services, including a coordinated set of
 1064  activities focused on improving the academic and functional
 1065  achievement of the student to facilitate his or her movement
 1066  from school to post-school activities and based on the
 1067  individual student’s needs. Transition services may be provided
 1068  by job coaches or pursuant to subsection (14).
 1069         (l) Fees for an annual evaluation of educational progress
 1070  by a state-certified teacher under s. 1002.41(1)(f), if this
 1071  option is chosen for a home education student.
 1072         (m) Tuition and fees associated with programs offered by
 1073  Voluntary Prekindergarten Education Program providers approved
 1074  pursuant to s. 1002.55 and school readiness providers approved
 1075  pursuant to s. 1002.88.
 1076         (n) Fees for services provided at a center that is a member
 1077  of the Professional Association of Therapeutic Horsemanship
 1078  International.
 1079         (o) Fees for services provided by a therapist who is
 1080  certified by the Certification Board for Music Therapists or
 1081  credentialed by the Art Therapy Credentials Board, Inc.
 1082         (p) Tuition and fees associated with enrollment in a
 1083  nationally or internationally recognized research-based training
 1084  program, for a child with a neurological disorder or brain
 1085  damage.
 1086         (q)Tuition and fees associated with a student’s
 1087  participation in classes or lessons relating to art, music, or
 1088  theater. The instructor of the classes or lessons must:
 1089         1.Hold a valid or expired Florida educator’s certificate
 1090  issued under s. 1012.56 in art, music, or drama;
 1091         2.Have 3 years of employment experience in art, music, or
 1092  theater, as demonstrated by employment records;
 1093         3.Hold a baccalaureate degree or higher from a
 1094  postsecondary educational institution with a major in music,
 1095  art, theater, or drama or a related field; or
 1096         4.Hold a certification or national accreditation in music,
 1097  art, theater, or drama.
 1098         (r)Transportation expenses that may not exceed $750
 1099  annually necessary to meet the student’s educational needs under
 1100  this section.
 1101  
 1102  A service provider who receives payments pursuant to this
 1103  subsection may not share or refund any moneys from the McKay
 1104  Gardiner Scholarship with the parent or participating student
 1105  and may not issue rebates to such persons. A parent, student, or
 1106  service provider may not bill an insurance company, Medicaid, or
 1107  any other agency for the same services that are paid for with
 1108  McKay-Gardiner Scholarship funds. Funding provided pursuant to
 1109  this subsection for a child eligible for enrollment in the
 1110  Voluntary Prekindergarten Education Program constitutes funding
 1111  for the child under part V of this chapter, and no additional
 1112  funding may be provided for the child under part V.
 1113         (6) TERMS OF THE PROGRAM.—For purposes of continuity of
 1114  educational choice and program integrity:
 1115         (a)1. Program payments made by the state to an organization
 1116  for a McKay-Gardiner Scholarship under this section must
 1117  continue until:
 1118         a. A student’s parent does not renew program eligibility;
 1119         b. The organization determines that a student is not
 1120  eligible for program renewal;
 1121         c. The Commissioner of Education suspends or revokes
 1122  program participation or use of funds pursuant to subparagraph
 1123  (b)1.;
 1124         d. A student’s parent has forfeited participation in the
 1125  program for failure to comply with subsection (11);
 1126         e. A student enrolls in a public school, except that a
 1127  student who enters a Department of Juvenile Justice detention
 1128  center for a period of no more than 21 days is not considered to
 1129  have returned to a public school for that purpose; or
 1130         f. A student graduates from high school or attains 22 years
 1131  of age, whichever occurs first.
 1132         2. Reimbursements for program expenditures may continue
 1133  until the account balance is expended or the account is closed
 1134  pursuant to paragraph (b).
 1135         (b)1. The commissioner must close a student’s scholarship
 1136  account, and any remaining funds, including, but not limited to,
 1137  contributions made to the Stanley G. Tate Florida Prepaid
 1138  College Program or earnings from or contributions made to the
 1139  Florida College Savings Program using program funds pursuant to
 1140  paragraph (5)(f), revert to the state after:
 1141         a. Denial or revocation of program eligibility by the
 1142  commissioner for fraud or abuse, including, but not limited to,
 1143  the student or student’s parent accepting any payment, refund,
 1144  or rebate from a provider of services received pursuant to
 1145  subsection (5); however, a private school may discount tuition
 1146  if the private school deems it necessary;
 1147         b. Any period of 3 consecutive years after high school
 1148  completion or graduation during which the student has not been
 1149  enrolled in an eligible postsecondary educational institution or
 1150  a program offered by such an institution; or
 1151         c. Two consecutive fiscal years in which an account has
 1152  been inactive.
 1153         2. The commissioner must notify the parent and the
 1154  organization when a McKay-Gardiner Scholarship account is closed
 1155  and program funds revert to the state.
 1156         (7) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 1157         (a)By each April 1 and within 10 days after an individual
 1158  education plan meeting or a 504 accommodation plan is issued
 1159  under s. 504 of the Rehabilitation Act of 1973, a school
 1160  district shall notify the parent of the student of all options
 1161  available pursuant to this section and shall inform the parent
 1162  of the availability of the department’s website for additional
 1163  information on McKay-Gardiner Scholarships.
 1164         (b)1. The parent of a student with a disability who does
 1165  not have an IEP or who seeks a reevaluation of an existing IEP
 1166  may request an IEP meeting and evaluation from the school
 1167  district in order to obtain or revise a matrix of services. The
 1168  district must accept the diagnosis, and consider the service
 1169  plan of the licensed professional providing the diagnosis
 1170  pursuant to sub-subparagraph (3)(a)3.a., during the development
 1171  of the IEP or provide in writing reasons for any changes or
 1172  disagreement with the licensed professional’s diagnosis and
 1173  service plan. The school district shall notify a parent who has
 1174  made a request for an IEP that the district is required to
 1175  complete the IEP and matrix of services within 30 days after
 1176  receiving notice of the parent’s request. The school district
 1177  shall conduct a meeting and develop an IEP and matrix of
 1178  services within 30 days after receipt of the parent’s request in
 1179  accordance with State Board of Education rule.
 1180         2.a. The school district must provide the student’s parent
 1181  and the department with the student’s matrix level within 10
 1182  calendar days after its completion.
 1183         b. A school district may change a matrix of services only
 1184  if the change is a result of an IEP reevaluation or to correct a
 1185  technical, typographical, or calculation error.
 1186         (c) For each student participating in the program who
 1187  chooses to participate in statewide, standardized assessments
 1188  under s. 1008.22 or the Florida Alternate Assessment, the school
 1189  district in which the student resides must notify the student
 1190  and his or her parent about the locations and times of all
 1191  statewide, standardized assessments.
 1192         (8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 1193  private school may be sectarian or nonsectarian and shall:
 1194         (a) Comply with all requirements for private schools
 1195  participating in state school choice scholarship programs
 1196  pursuant to s. 1002.421.
 1197         (b)1. Annually administer or make provision for students
 1198  participating in the program in grades 3 through 10 to take one
 1199  of the nationally norm-referenced tests identified by the
 1200  Department of Education or the statewide assessments
 1201  administered pursuant to s. 1008.22. This subparagraph does not
 1202  apply to students with disabilities for whom standardized
 1203  testing is not appropriate. A participating private school shall
 1204  report a student’s scores to the parent.
 1205         2. Administer the statewide assessments pursuant to s.
 1206  1008.22 if a private school chooses to offer the statewide
 1207  assessments. A participating private school may choose to offer
 1208  and administer the statewide assessments to all students who
 1209  attend the private school in grades 3 through 10 and must submit
 1210  a request in writing to the Department of Education by March 1
 1211  of each year in order to administer the statewide assessments in
 1212  the subsequent school year.
 1213         (c) Provide to the organization all documentation for a
 1214  student’s participation by a date established by the
 1215  organization.
 1216  
 1217  If a private school fails to meet the requirements of this
 1218  subsection or s. 1002.421, the commissioner may determine that
 1219  the private school is ineligible to participate in the
 1220  scholarship program.
 1221         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 1222  shall:
 1223         (a) Comply with s. 1002.394(8)(a)-(g).
 1224         (b) Maintain on its website a list of approved providers as
 1225  required by s. 1002.66, eligible postsecondary educational
 1226  institutions, eligible private schools, and eligible
 1227  organizations and may identify or provide links to lists of
 1228  other approved providers.
 1229         (c) Require each organization to verify eligible
 1230  expenditures before the distribution of funds for any
 1231  expenditures made pursuant to paragraphs (5)(a) and (b). Review
 1232  of expenditures made for services specified in paragraphs
 1233  (5)(c)-(r) may be completed after the purchase is made.
 1234         (d) Investigate any written complaint of a violation of
 1235  this section by a parent, a student, a private school, a public
 1236  school, a school district, an organization, a provider, or
 1237  another appropriate party in accordance with the process
 1238  established under s. 1002.421.
 1239         (e) Require quarterly reports by an organization, which
 1240  must include, at a minimum, the number of students participating
 1241  in the program; the demographics of program participants; the
 1242  disability category of program participants; the matrix level of
 1243  services, if known; the program award amount per student; the
 1244  total expenditures for the purposes specified in subsection (5);
 1245  the types of providers of services to students; and any other
 1246  information deemed necessary by the department.
 1247         (f) Compare the list of students participating in the
 1248  program with the public school student enrollment lists,
 1249  Voluntary Prekindergarten Education Program enrollment lists,
 1250  and the list of students participating in school choice
 1251  scholarship programs established pursuant to this chapter before
 1252  each scholarship award is provided to the organization, and
 1253  subsequently throughout the school year, to avoid duplicate
 1254  payments and confirm program eligibility.
 1255         (g) Distribute each student’s scholarship funds on a
 1256  quarterly basis to the eligible nonprofit scholarship-funding
 1257  organization, to be deposited into the student’s account.
 1258         (h) Establish and coordinate with the eligible nonprofit
 1259  scholarship-funding organizations an FTE reporting process to
 1260  provide FTE by county by FEFP program and by matrix level of
 1261  services to be used to revise and update the K-12 Education
 1262  Scholarship Program allocation pursuant to s. 1011.687, for
 1263  inclusion in the FEFP calculations beginning with the FEFP
 1264  calculation following the October student membership survey.
 1265         (10) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.—
 1266         (a) The Commissioner of Education:
 1267         1. May suspend or revoke program participation or use of
 1268  program funds by the student or participation or eligibility of
 1269  an organization, eligible postsecondary educational institution,
 1270  approved provider, or other party for a violation of this
 1271  section.
 1272         2. May determine the length of, and conditions for lifting,
 1273  a suspension or revocation specified in this subsection.
 1274         3. May recover unexpended program funds or withhold payment
 1275  of an equal amount of program funds to recover program funds
 1276  that were not authorized for use.
 1277         4. Shall deny or terminate program participation upon a
 1278  parent’s forfeiture of a McKay-Gardiner Scholarship pursuant to
 1279  subsection (11).
 1280         (b) In determining whether to suspend or revoke
 1281  participation or lift a suspension or revocation in accordance
 1282  with this subsection, the commissioner may consider factors that
 1283  include, but are not limited to, acts or omissions that led to a
 1284  previous suspension or revocation of participation in a state or
 1285  federal program or an education scholarship program; failure to
 1286  reimburse the organization for funds improperly received or
 1287  retained; failure to reimburse government funds improperly
 1288  received or retained; imposition of a prior criminal sanction
 1289  related to the person or entity or its officers or employees;
 1290  imposition of a civil or administrative fine, license revocation
 1291  or suspension, or program eligibility suspension, termination,
 1292  or revocation related to a person’s or an entity’s management or
 1293  operation; or other types of criminal proceedings in which the
 1294  person or entity or its officers or employees were found guilty
 1295  of, regardless of adjudication, or entered a plea of nolo
 1296  contendere or guilty to, any offense involving fraud, deceit,
 1297  dishonesty, or moral turpitude.
 1298         (11) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 1299  PARTICIPATION.—A parent who applies for program participation
 1300  under this section is exercising his or her parental option to
 1301  determine the appropriate placement or services that best meet
 1302  the needs of his or her child.
 1303         (a) To satisfy or maintain program eligibility, including
 1304  eligibility to receive and spend program payments, the parent
 1305  must sign an agreement with the organization and annually submit
 1306  a sworn compliance statement to the organization to:
 1307         1. Affirm that the student is enrolled in a program that
 1308  meets regular school attendance requirements as provided in s.
 1309  1003.01(13)(b), (c), or (d).
 1310         2. Affirm that the program funds are used only for
 1311  authorized purposes serving the student’s educational needs, as
 1312  described in subsection (5).
 1313         3. Affirm that the parent is responsible for the education
 1314  of his or her student by, as applicable:
 1315         a. Requiring the student to take an assessment in
 1316  accordance with paragraph (8)(b);
 1317         b. Providing an annual evaluation in accordance with s.
 1318  1002.41(1)(f); or
 1319         c. Requiring the child to take any preassessments and
 1320  postassessments selected by the provider if the child is 4 years
 1321  of age and is enrolled in a program provided by an eligible
 1322  Voluntary Prekindergarten Education Program provider. This sub
 1323  subparagraph does not apply to a student with disabilities for
 1324  whom a preassessment and postassessment are not appropriate. A
 1325  participating provider shall report a student’s scores to the
 1326  parent.
 1327         4. Affirm that the student remains in good standing with
 1328  the provider or school if one of those options is selected by
 1329  the parent.
 1330         (b) The parent must file an application for initial program
 1331  participation with an organization by a date established by the
 1332  organization.
 1333         (c) The parent must enroll his or her child in a program
 1334  from a Voluntary Prekindergarten Education Program provider
 1335  authorized under s. 1002.55, a school readiness provider
 1336  authorized under s. 1002.88, or an eligible private school if
 1337  either option is selected by the parent.
 1338         (d) The parent must annually renew participation in the
 1339  program by a date set and format determined by the nonprofit
 1340  scholarship-funding organization in order for a student to be
 1341  eligible to receive funding. A student whose participation in
 1342  the program is not renewed may continue to spend scholarship
 1343  funds that are in his or her account from prior years unless the
 1344  account is closed pursuant to paragraph (6)(b). Notwithstanding
 1345  any changes to the student’s IEP, a student who was previously
 1346  eligible for participation in the program remains eligible to
 1347  apply for renewal. However, for a high-risk child to continue to
 1348  participate in the program in the school year after he or she
 1349  reaches 6 years of age, the child’s application for renewal of
 1350  program participation must contain documentation that the child
 1351  has a disability, other than high-risk status.
 1352         (e) The parent is responsible for procuring the services
 1353  necessary to educate the student. If a parent does not procure
 1354  the necessary educational services for the student and the
 1355  student’s account has been inactive for 2 consecutive fiscal
 1356  years, the student’s account must be closed pursuant to
 1357  paragraph (6)(b). When the student receives a McKay-Gardiner
 1358  Scholarship, the district school board is not obligated to
 1359  provide the student with a free, appropriate public education.
 1360  For purposes of s. 1003.57 and the Individuals with Disabilities
 1361  in Education Act, a participating student has only those rights
 1362  that apply to all other unilaterally, parentally placed
 1363  students, except that, when requested by the parent, school
 1364  district personnel must develop an individual education plan or
 1365  matrix level of services.
 1366         (f) The parent is responsible for all eligible expenses in
 1367  excess of the amount of the McKay-Gardiner Scholarship.
 1368         (g) The parent may not transfer any prepaid college plan or
 1369  college savings plan funds contributed pursuant to paragraph
 1370  (5)(f) to another beneficiary while the plan contains funds
 1371  contributed pursuant to this section.
 1372         (h) The parent may not receive a payment, refund, or rebate
 1373  from an approved provider of any services under this program.
 1374  
 1375  A participant who fails to comply with this subsection forfeits
 1376  the McKay-Gardiner Scholarship.
 1377         (12) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 1378  APPLICATION.—In order to participate in the scholarship program
 1379  created under this section, a charitable organization that seeks
 1380  to be an eligible nonprofit scholarship-funding organization
 1381  must submit an application for initial approval or renewal to
 1382  the Office of Independent Education and Parental Choice no later
 1383  than September 1 of each year before the school year for which
 1384  the organization intends to offer scholarships.
 1385         (a) An application for initial approval must include all of
 1386  the following:
 1387         1. A copy of the organization’s incorporation documents and
 1388  registration with the Division of Corporations of the Department
 1389  of State.
 1390         2. A copy of the organization’s Internal Revenue Service
 1391  determination letter as a s. 501(c)(3) not-for-profit
 1392  organization.
 1393         3. A description of the organization’s financial plan which
 1394  demonstrates sufficient funds to operate throughout the school
 1395  year.
 1396         4. A description of the geographic region that the
 1397  organization intends to serve and an analysis of the demand and
 1398  unmet need for eligible students in that area.
 1399         5. The organization’s organizational chart.
 1400         6. A description of the criteria and methodology that the
 1401  organization will use to evaluate scholarship eligibility.
 1402         7. A description of the application process, including
 1403  deadlines and any associated fees.
 1404         8. A description of the deadlines for attendance
 1405  verification and scholarship payments.
 1406         9. A copy of the organization’s policies on conflict of
 1407  interest and whistleblowers.
 1408         10. A copy of a surety bond or letter of credit to secure
 1409  the faithful performance of the obligations of the eligible
 1410  nonprofit scholarship-funding organization in accordance with
 1411  this section in an amount equal to 25 percent of the scholarship
 1412  funds anticipated for each school year or $100,000, whichever is
 1413  greater. The surety bond or letter of credit must specify that
 1414  any claim against the bond or letter of credit may be made only
 1415  by an eligible nonprofit scholarship-funding organization to
 1416  provide scholarships to and on behalf of students who would have
 1417  had scholarships funded if it were not for the diversion of
 1418  funds giving rise to the claim against the bond or letter of
 1419  credit.
 1420         (b) In addition to the information required under paragraph
 1421  (a), an application for renewal must include all of the
 1422  following:
 1423         1. A single surety bond or letter of credit to secure the
 1424  faithful performance of the obligations of the eligible
 1425  nonprofit scholarship-funding organization in accordance with
 1426  this chapter equal to the amount of undisbursed funds held by
 1427  the organization based on the annual report submitted pursuant
 1428  to paragraph (13)(a). The amount of the surety bond or letter of
 1429  credit must be at least $100,000, but not more than $25 million.
 1430  The surety bond or letter of credit must specify that any claim
 1431  against the bond or letter of credit may be made only by an
 1432  eligible nonprofit scholarship-funding organization to provide
 1433  scholarships to and on behalf of students who would have had
 1434  scholarships funded if it were not for the diversion of funds
 1435  giving rise to the claim against the bond or letter of credit.
 1436         2. The organization’s completed Internal Revenue Service
 1437  Form 990 submitted no later than November 30 of the year before
 1438  the school year for which the organization intends to offer the
 1439  scholarships, notwithstanding the September 1 application
 1440  deadline.
 1441         3. A copy of any statutorily required audit that the
 1442  organization must provide to the Department of Education and
 1443  Auditor General.
 1444         4. An annual report that includes all of the following:
 1445         a. The number of students who completed applications, by
 1446  county and by grade.
 1447         b. The number of students who were approved for
 1448  scholarships, by county and by grade.
 1449         c. The number of students who received funding for
 1450  scholarships within each funding category, by county and by
 1451  grade.
 1452         d. The amount of funds received, the amount of funds
 1453  distributed in scholarships, and an accounting of remaining
 1454  funds and the obligation of those funds.
 1455         e. A detailed accounting of how the organization spent the
 1456  administrative funds allowable under paragraph (13)(f).
 1457         (c) In consultation with the Chief Financial Officer, the
 1458  Office of Independent Education and Parental Choice shall review
 1459  the application. The Department of Education shall notify the
 1460  organization in writing of any deficiencies within 30 days after
 1461  receipt of the application and allow the organization 30 days to
 1462  correct any deficiencies.
 1463         (d) Within 30 days after receipt of the finalized
 1464  application by the Office of Independent Education and Parental
 1465  Choice, the Commissioner of Education shall recommend approval
 1466  or disapproval of the application to the State Board of
 1467  Education. The State Board of Education shall consider the
 1468  application and recommendation at the next scheduled meeting,
 1469  adhering to appropriate meeting notice requirements. If the
 1470  State Board of Education disapproves the organization’s
 1471  application, it must provide the organization with a written
 1472  explanation of that determination. The State Board of
 1473  Education’s action is not subject to chapter 120.
 1474         (e) If the State Board of Education disapproves the renewal
 1475  of a nonprofit scholarship-funding organization, the
 1476  organization must notify the affected eligible students and
 1477  parents of the decision within 15 days after disapproval. An
 1478  eligible student affected by the disapproval of an
 1479  organization’s participation remains eligible under this section
 1480  until the end of the school year in which the organization was
 1481  disapproved. The student must apply to and be accepted by
 1482  another eligible nonprofit scholarship-funding organization for
 1483  the upcoming school year. The student must be given priority
 1484  under paragraph (13)(e).
 1485         (f) All remaining student accounts with funds held by a
 1486  nonprofit scholarship-funding organization that is disapproved
 1487  for participation must be transferred to the student’s account
 1488  established with the eligible nonprofit scholarship-funding
 1489  organization that accepts the student. All transferred funds
 1490  must be deposited by the eligible nonprofit scholarship-funding
 1491  organization receiving such funds into the student’s scholarship
 1492  account. All other remaining funds must be transferred to the
 1493  department. All transferred amounts received by any eligible
 1494  nonprofit scholarship-funding organization must be separately
 1495  disclosed in the annual audit required under subsection (16).
 1496         (g) A nonprofit scholarship-funding organization is a
 1497  renewing organization if it was approved by the State Board of
 1498  Education for the 2021-2022 fiscal year or after and maintains
 1499  continuous approval and participation in the program. An
 1500  organization that chooses not to participate for 1 year or more
 1501  or is disapproved to participate for 1 year or more must submit
 1502  an application for initial approval in order to participate in
 1503  the program again.
 1504         (h) The State Board of Education shall adopt rules
 1505  providing guidelines for receiving, reviewing, and approving
 1506  applications for new and renewing nonprofit scholarship-funding
 1507  organizations. The rules must include a process for compiling
 1508  input and recommendations from the Chief Financial Officer and
 1509  the Department of Education. The rules also must require that
 1510  the nonprofit scholarship-funding organization make a brief
 1511  presentation to assist the State Board of Education in its
 1512  decision.
 1513         (i)A state university; or an independent nonprofit college
 1514  chartered in this state or independent nonprofit university
 1515  chartered in this state that are eligible to participate in the
 1516  William L. Boyd, IV, Effective Access to Student Education Grant
 1517  Program and are accredited by the Commission on Colleges of the
 1518  Southern Association of Colleges and Schools is exempt from the
 1519  initial or renewal application process, but must file a
 1520  registration notice with the Department of Education to be an
 1521  eligible nonprofit scholarship-funding organization. The State
 1522  Board of Education shall adopt rules that identify the procedure
 1523  for filing the registration notice with the department. The
 1524  rules must identify appropriate reporting requirements for
 1525  fiscal, programmatic, and performance accountability purposes
 1526  consistent with this section, but may not exceed the
 1527  requirements for eligible nonprofit scholarship-funding
 1528  organizations for charitable organizations.
 1529         (13) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
 1530  ORGANIZATIONS.—An organization may establish McKay-Gardiner
 1531  Scholarships for eligible students by:
 1532         (a) Complying with the requirements of s. 1002.394(11)(a)
 1533  (h), including, but not limited to, the annual report on the
 1534  results of the annual financial audit.
 1535         (b) Receiving applications and determining student
 1536  eligibility in accordance with the requirements of this section.
 1537  When an application is approved, the organization must provide
 1538  the department with information on the student to enable the
 1539  department to determine student funding in accordance with
 1540  subsection (15).
 1541         (c) Providing scholarships on a first-come, first-served
 1542  basis, based upon the funds provided, and notifying parents of
 1543  their respective student’s receipt of a scholarship.
 1544         (d) Establishing a date by which a parent must confirm
 1545  initial or continuing participation in the program.
 1546         (e) Reviewing applications and awarding scholarship funds
 1547  to approved applicants using the following order of priority:
 1548         1.a.For the 2021-2022 school year, a student who received
 1549  a John M. McKay Scholarship for Students with Disabilities or a
 1550  Gardiner Scholarship in the 2020-2021 school year and meets the
 1551  eligibility requirements in subsection (3) is eligible for a
 1552  McKay-Gardiner Scholarship in the 2021-2022 school year.
 1553         b. For the 2022-2023 school year and thereafter, renewing
 1554  students from the previous school year under this section.
 1555         2. Students retained on the previous school year’s wait
 1556  list.
 1557         3. An eligible student who meets the criteria for an
 1558  initial award pursuant to subsection (3).
 1559  
 1560  An approved student who does not receive a scholarship must be
 1561  placed on the wait list in the order in which his or her
 1562  application is approved. An eligible student who does not
 1563  receive a scholarship within the fiscal year shall be retained
 1564  on the wait list for the subsequent year.
 1565         (f)Using an amount not to exceed 2.5 percent of the total
 1566  calculated amount of all scholarships awarded under this section
 1567  for administrative expenses associated with performing functions
 1568  authorized under this section, if the organization has operated
 1569  as an eligible nonprofit scholarship-funding organization for at
 1570  least the preceding 3 fiscal years and did not have any material
 1571  weakness or material noncompliance in its most recent audit
 1572  performed pursuant to s. 1002.394(11)(f).
 1573         (g) Verifying qualifying educational expenditures pursuant
 1574  to paragraph (9)(c) and requesting the return of any funds used
 1575  for unauthorized purposes.
 1576         (h) Returning any remaining program funds to the department
 1577  pursuant to paragraph (6)(b).
 1578         (i) Notifying the parent about the availability of, and the
 1579  requirements associated with requesting, an initial IEP or IEP
 1580  reevaluation every 3 years for each student participating in the
 1581  program.
 1582         (j) Documenting each student’s eligibility for a fiscal
 1583  year before granting a scholarship for that fiscal year pursuant
 1584  to paragraph (3)(b). A student is ineligible for a scholarship
 1585  if the student’s account has been inactive for 2 consecutive
 1586  fiscal years and the student’s account has been closed pursuant
 1587  to paragraph (6)(b).
 1588         (k) Submitting in a timely fashion any information
 1589  requested by the department relating to the program.
 1590         (l)Preparing and submitting quarterly reports to the
 1591  department pursuant to paragraph (9)(e).
 1592         (m) Notifying the department of any violation of this
 1593  section.
 1594         (14) TRANSITION-TO-WORK PROGRAM.—A student participating in
 1595  the McKay-Gardiner Scholarship Program who is at least 17 years
 1596  of age, but not older than 22 years of age, and who has not
 1597  received a high school diploma or certificate of completion is
 1598  eligible for enrollment in a transition-to-work program provided
 1599  by a private school or job coach. A transition-to-work program
 1600  must consist of academic instruction, work skills training, and
 1601  a volunteer or paid work experience.
 1602         (a) To offer a transition-to-work program, a participating
 1603  private school or job coach must:
 1604         1. Develop a transition-to-work program plan, which must
 1605  include a written description of the academic instruction and
 1606  work skills training students will receive and the goals for
 1607  students in the program.
 1608         2. Submit the transition-to-work program plan to the Office
 1609  of Independent Education and Parental Choice.
 1610         3. Develop a personalized transition-to-work program plan
 1611  for each student enrolled in the program. The student’s parent,
 1612  the student, and the school principal or job coach must sign the
 1613  personalized plan. The personalized plan must be submitted to
 1614  the Office of Independent Education and Parental Choice upon
 1615  request by the office.
 1616         4. Provide a release of liability form that must be signed
 1617  by the student’s parent, the student, and a representative of
 1618  the business offering the volunteer or paid work experience.
 1619         5. Assign a case manager or job coach to visit the
 1620  student’s job site on a weekly basis to observe the student and,
 1621  if necessary, provide support and guidance to the student.
 1622         6. Provide to the parent and student a quarterly report
 1623  that documents and explains the student’s progress and
 1624  performance in the program.
 1625         7. Maintain accurate attendance and performance records for
 1626  the student.
 1627         (b) A student enrolled in a transition-to-work program
 1628  must, at a minimum:
 1629         1. Receive 15 instructional hours that must include
 1630  academic instruction and work skills training.
 1631         2. Participate in 10 hours of work at the student’s
 1632  volunteer or paid work experience.
 1633         (c) To participate in a transition-to-work program, a
 1634  business must:
 1635         1. Maintain an accurate record of the student’s performance
 1636  and hours worked and provide the information to the private
 1637  school.
 1638         2. Comply with all state and federal child labor laws.
 1639         (15) FUNDING AND PAYMENT.—For the purposes of this
 1640  subsection, the term “student FTE” refers to how participating
 1641  students are calculated for the purposes of the scholarship
 1642  program allocation, which is equal to four quarterly scholarship
 1643  payments.
 1644         (a)The McKay-Gardiner scholarship is established for up to
 1645  50,000 student FTE for the 2021-2022 school year. For the 2022
 1646  2023 school year, and each year thereafter, the maximum number
 1647  of student FTE shall increase by 1.0 percent of the state’s
 1648  total public school exceptional student education student
 1649  enrollment, not including gifted students.
 1650         1. For a student who has a Level I to Level III matrix of
 1651  services or a doctor’s diagnosis, the calculated scholarship
 1652  amount for a student participating in the program must be based
 1653  upon the grade level and school district in which the student
 1654  would have been enrolled as 97.5 percent of the funds per
 1655  unweighted full-time equivalent in the Florida Education Finance
 1656  Program for a student in the basic exceptional student education
 1657  program pursuant to s. 1011.62(1)(c)1. and (e)1.c., plus a per
 1658  full-time equivalent share of funds for all categorical
 1659  programs, as funded in the General Appropriations Act, except
 1660  that for the exceptional student education guaranteed allocation
 1661  as provided in s. 1011.62(1)(e)1.c. and 2., the funds must be
 1662  allocated based on the school district’s average exceptional
 1663  student education guaranteed allocation funds per exceptional
 1664  student education full-time equivalent student.
 1665         2.For a student with a Level IV or Level V matrix of
 1666  services, the calculated scholarship amount must be based upon
 1667  the school district to which the student would have been
 1668  assigned as 97.5 percent of the funds per full-time equivalent
 1669  for the Level IV or Level V exceptional student education
 1670  program pursuant to s. 1011.62(1)(c)2.a. or b., plus a per-full
 1671  time equivalent share of funds for all categorical programs, as
 1672  funded in the General Appropriations Act.
 1673         3.For a student with a 504 plan, the calculated
 1674  scholarship amount must be based upon the grade level and school
 1675  district to which the student would have been assigned as 97.5
 1676  percent of the funds per unweighted full-time equivalent in the
 1677  Florida Education Finance Program for a student in the basic
 1678  education program established pursuant to s. 1011.62(1)(c)1.,
 1679  plus a per-full-time equivalent share of funds for all
 1680  categorical programs, as funded in the General Appropriations
 1681  Act.
 1682         (b)At the time of each Florida Education Finance Program
 1683  student membership survey, the scholarship-funding organization
 1684  shall report to the department student enrollment, student FTE,
 1685  and total award amounts by county, delineated by FEFP program,
 1686  and grade and matrix level for all students who are
 1687  participating in the McKay-Gardiner Scholarship Program.
 1688  Students with a 504 plan must be separately identified.
 1689         (c)Upon notification from an organization on July 1,
 1690  September 1, December 1, and February 1 that an application has
 1691  been approved for the program, the department shall verify that
 1692  the student is not prohibited from receiving a scholarship
 1693  pursuant to subsection (4). The organization must provide the
 1694  department with the documentation necessary to verify the
 1695  student’s participation.
 1696         (d) Upon verification, the department shall release the
 1697  student’s scholarship funds to the organization, to be deposited
 1698  into the student’s account in four equal amounts no later than
 1699  September 1, November 1, February 1, and April 1 of each school
 1700  year in which the scholarship is in force.
 1701         (e) Accrued interest in the student’s account is in
 1702  addition to, and not part of, the awarded funds. Program funds
 1703  include both the awarded funds and accrued interest.
 1704         (f) The organization may develop a system for payment of
 1705  benefits by funds transfer, including, but not limited to, debit
 1706  cards, electronic payment cards, or any other means of payment
 1707  which the department deems to be commercially viable or cost
 1708  effective. A student’s scholarship award may not be reduced for
 1709  debit card or electronic payment fees. Commodities or services
 1710  related to the development of such a system must be procured by
 1711  competitive solicitation unless they are purchased from a state
 1712  term contract pursuant to s. 287.056.
 1713         (g) Moneys received pursuant to this section do not
 1714  constitute taxable income to the qualified student or the parent
 1715  of the qualified student.
 1716         (16) OBLIGATIONS OF THE AUDITOR GENERAL.—
 1717         (a) The Auditor General shall review all audit reports
 1718  submitted pursuant to subsection (13). The Auditor General shall
 1719  request any significant items that were omitted in violation of
 1720  a rule adopted by the Auditor General. The organization shall
 1721  provide such items within 45 days after the date of the request.
 1722  If the scholarship-funding organization does not comply with the
 1723  Auditor General’s request, the Auditor General must notify the
 1724  Legislative Auditing Committee.
 1725         (b) At least once every 3 years, the Auditor General shall
 1726  conduct an operational audit of accounts and records of each
 1727  organization that participates in the program. As part of this
 1728  audit, the Auditor General, at a minimum, shall verify the total
 1729  number of students served and the eligibility of reimbursements
 1730  made by the organization and transmit that information to the
 1731  department. The Auditor General shall provide the commissioner
 1732  with a copy of each annual operational audit performed pursuant
 1733  to this subsection within 10 days after the audit is finalized.
 1734         (c) The Auditor General shall notify the department of any
 1735  organization that fails to comply with a request for
 1736  information.
 1737         (17) OBLIGATIONS RELATED TO APPROVED PROVIDERS.—The
 1738  Department of Health, the Agency for Persons with Disabilities,
 1739  and the Department of Education shall coordinate with an
 1740  organization to provide easy or automated access to lists of
 1741  licensed providers of services specified in paragraph (5)(c) to
 1742  ensure efficient administration of the program.
 1743         (18) LIABILITY.—The state is not liable for the awarding of
 1744  funds or for any use of funds awarded under this section.
 1745         (19) SCOPE OF AUTHORITY.—This section does not expand the
 1746  authority of the state, its officers, or any school district to
 1747  impose additional regulation on participating private schools,
 1748  independent postsecondary educational institutions, and private
 1749  providers beyond that reasonably necessary to enforce
 1750  requirements expressly set forth in this section.
 1751         (20) RULES.—The State Board of Education shall adopt rules
 1752  pursuant to ss. 120.536(1) and 120.54 to administer this
 1753  section.
 1754         Section 17. Section 1002.385, Florida Statutes, is
 1755  repealed.
 1756         Section 18. Section 1002.39, Florida Statutes, is repealed.
 1757         Section 19. Section 1002.394, Florida Statutes, is amended
 1758  to read:
 1759         1002.394 The Family Empowerment Scholarship Program.—
 1760         (1) PURPOSE.—The Family Empowerment Scholarship Program is
 1761  established to provide children of families in this state,
 1762  including those with which have limited financial resources,
 1763  with educational options to achieve success in their education.
 1764         (2) DEFINITIONS.—As used in this section, the term:
 1765         (a) “Approved provider” means a provider approved by the
 1766  department “Department” means the Department of Education.
 1767         (b) “Curriculum” means a complete course of study for a
 1768  particular content area or grade level, including any required
 1769  supplemental materials, teachers’ manuals, and associated online
 1770  instruction.
 1771         (c) “Department” means the Department of Education.
 1772         (d) “Direct certification list” means the certified list of
 1773  children who qualify for the food assistance program, the
 1774  Temporary Assistance for Needy Families Program, or the Food
 1775  Distribution Program on Indian Reservations provided to the
 1776  Department of Education by the Department of Children and
 1777  Families.
 1778         (e) “Eligible nonprofit scholarship-funding organization”
 1779  or “organization” means a state university, an independent
 1780  college or university that is eligible to participate in the
 1781  William L. Boyd, IV, Effective Access to Student Education Grant
 1782  Program located and chartered in this state which is not for
 1783  profit and is accredited by the Commission on Colleges of the
 1784  Southern Association of Colleges and Schools, or is a charitable
 1785  organization that: has the same meaning as provided in s.
 1786  1002.395(2)(f).
 1787         1. Is exempt from federal income tax pursuant to s.
 1788  501(c)(3) of the Internal Revenue Code;
 1789         2. Is a Florida entity formed under chapter 605, chapter
 1790  607, or chapter 617 and whose principal office is located in
 1791  this state; and
 1792         3. Complies with subsections (11) and (14).
 1793         (f) “Eligible postsecondary educational institution” means
 1794  a Florida College System institution; a state university; a
 1795  school district technical center; a school district adult
 1796  general education center; an independent college or university
 1797  that is eligible to participate in the William L. Boyd, IV,
 1798  Effective Access to Student Education Grant Program under s.
 1799  1009.89; or an accredited independent postsecondary educational
 1800  institution, as defined in s. 1005.02, which is licensed to
 1801  operate in this state under part III of chapter 1005.
 1802         (g)(c) “Eligible private school” means a private school as
 1803  defined in s. 1002.01 located in this state which offers an
 1804  education to students in any grade from kindergarten through
 1805  grade 12 and:
 1806         1. Meets the requirements of ss. 1002.42 and 1002.421; and
 1807         2. Meets the applicable requirements imposed under this
 1808  chapter, if the private school participates in a scholarship
 1809  program under this chapter has the same meaning as provided in
 1810  s. 1002.395(2)(g).
 1811         (h) “Household income” has the same meaning as the term
 1812  “income” as defined in the Income Eligibility Guidelines for
 1813  free and reduced price meals under the National School Lunch
 1814  Program in 7 C.F.R. part 210 as published in the Federal
 1815  Register by the United States Department of Agriculture.
 1816         (i) “Inactive” means that no eligible expenditures have
 1817  been made from a student scholarship account funded pursuant to
 1818  this section.
 1819         (j) “Incident” means battery; harassment; hazing; bullying;
 1820  kidnapping; physical attack; robbery; sexual offenses,
 1821  harassment, assault, or battery; threat or intimidation; or
 1822  fighting at school, as defined by the department in accordance
 1823  with s. 1006.147(4).
 1824         (k) “Owner or operator” includes:
 1825         1. An owner, president, officer, or director of an eligible
 1826  nonprofit scholarship-funding organization or a person with
 1827  equivalent decisionmaking authority over an eligible nonprofit
 1828  scholarship-funding organization.
 1829         2. An owner, operator, superintendent, or principal of an
 1830  eligible private school or a person with equivalent
 1831  decisionmaking authority over an eligible private school.
 1832         (l)(d) “Parent” means a resident of this state who is a
 1833  parent, as defined in s. 1000.21.
 1834         (m)(e) “Program” means the Family Empowerment Scholarship
 1835  Program.
 1836         (n) “School” means any educational program or activity
 1837  conducted by a public K-12 educational institution, any school
 1838  related or school-sponsored program or activity, and riding on a
 1839  school bus as defined in s. 1006.25(1), including waiting at a
 1840  school bus stop.
 1841         (3) INITIAL SCHOLARSHIP ELIGIBILITY.—A student is eligible
 1842  for a Family Empowerment Scholarship under this section if the
 1843  student meets the following criteria:
 1844         (a)1. The student is on the direct certification list
 1845  pursuant to s. 1002.395(2)(c) or the student’s household income
 1846  level does not exceed 300 185 percent of the federal poverty
 1847  level or an adjusted maximum percent of the federal poverty
 1848  level established pursuant to paragraph (e); or
 1849         2. The student is:
 1850         a. Currently placed, or during the previous state fiscal
 1851  year was placed, in foster care or in out-of-home care as
 1852  defined in s. 39.01;
 1853         b.A sibling of a student who is participating in the
 1854  scholarship program under this subsection, if the student
 1855  resides in the same household as the sibling;
 1856         c. A sibling of a student who is participating in the
 1857  scholarship program under s. 1002.381, if the student resides in
 1858  the same household as the sibling and attends the same school;
 1859  or
 1860         d. Enrolled in a Florida public school in kindergarten
 1861  through grade 12 and reported an incident in accordance with
 1862  paragraph (7)(b)
 1863         3.The student’s household income level does not exceed 300
 1864  percent of the federal poverty level or an adjusted maximum
 1865  percent of the federal poverty level as established pursuant to
 1866  paragraph (e).
 1867  
 1868  A student who initially receives a scholarship based on
 1869  eligibility under this paragraph subparagraph 2. remains
 1870  eligible to participate until the student graduates from high
 1871  school or attains the age of 21 years, whichever occurs first,
 1872  regardless of the student’s household income level. A sibling of
 1873  a student who is participating in the scholarship program under
 1874  this subsection is eligible for a scholarship if the student
 1875  resides in the same household as the sibling.
 1876         (b)1. The student is eligible to enroll in kindergarten
 1877  through grade 12 in a public school in this state;
 1878         2. The student has spent the prior school year in
 1879  attendance at a Florida public school; or
 1880         3. Beginning with the 2020-2021 school year, the student
 1881  received a scholarship pursuant to s. 1002.395 during the
 1882  previous school year but did not receive a renewal scholarship
 1883  based solely on the eligible nonprofit scholarship-funding
 1884  organization’s lack of available funds after the organization
 1885  fully exhausts its efforts to use funds available for awards
 1886  under ss. 1002.395 and 1002.40(11)(i). Eligible nonprofit
 1887  scholarship-funding organizations with students who meet the
 1888  eligibility criterion of this subparagraph must annually notify
 1889  the department in a format and by a date established by the
 1890  department.
 1891  
 1892  For purposes of this paragraph, the term “prior school year in
 1893  attendance” means that the student was enrolled full time and
 1894  reported by a school district for funding during the preceding
 1895  October and February Florida Education Finance Program surveys
 1896  in kindergarten through grade 12, which includes time spent in a
 1897  Department of Juvenile Justice commitment program if funded
 1898  under the Florida Education Finance Program. However, a
 1899  dependent child of a member of the United States Armed Forces
 1900  who transfers to a school in this state from out of state or
 1901  from a foreign country due to a parent’s permanent change of
 1902  station orders or a foster child is exempt from the prior public
 1903  school attendance requirement under this paragraph, but must
 1904  meet the other eligibility requirements specified under this
 1905  section to participate in the program.
 1906         (c) The parent has applied to an eligible nonprofit
 1907  scholarship-funding organization to participate in the program
 1908  by a date set by the organization obtained acceptance for
 1909  admission of the student to a private school that is eligible
 1910  for the program under subsection (8), and the parent has
 1911  requested a scholarship from the Department of Education by a
 1912  date established by the department pursuant to paragraph (7)(e),
 1913  but no later than at least 60 days before the date of the first
 1914  scholarship payment. The application request must be
 1915  communicated directly to the organization department in a manner
 1916  that creates a written or electronic record of the application
 1917  request and the date of receipt of the application request. The
 1918  department must notify the school district of the parent’s
 1919  intent upon receipt of the parent’s request.
 1920         (d) The student is awarded a scholarship in accordance with
 1921  the following priority order:
 1922         1. An eligible student who received a Family Empowerment
 1923  Scholarship during the previous school year, or a Florida Tax
 1924  Credit Scholarship or Hope Scholarship during the 2020-2021
 1925  school year, and requested a renewal scholarship award.
 1926         2. An eligible student who meets the criteria for an
 1927  initial award under both paragraphs paragraph (a) and (b) and
 1928  was retained on the previous school year’s wait list
 1929  subparagraph (b)3.
 1930         3. An eligible student who meets the criteria for an
 1931  initial award under sub-subparagraph (a)2.a., or sub
 1932  subparagraph (a)2.b., or sub-subparagraph (a)2.d., and paragraph
 1933  (b) subparagraph (b)2. and either subparagraph (a)1. or
 1934  subparagraph (a)2.
 1935         4. An eligible student who meets the criteria for an
 1936  initial award under subparagraph (a)1. (b)1. and paragraph (b),
 1937  and the student’s household income level does not exceed 185
 1938  percent of the federal poverty level either subparagraph (a)1.
 1939  or subparagraph (a)2.
 1940         5. An eligible student who meets the criteria for an
 1941  initial award under subparagraph (a)1. (a)3. and, paragraph (b)
 1942  in priority order, either subparagraph (b)2. or subparagraph
 1943  (b)1.
 1944         6. An eligible student who meets the criteria for an
 1945  initial award under sub-subparagraph (a)2.c. and paragraph (b).
 1946  
 1947  An approved student who does not receive a scholarship must be
 1948  placed on the wait list in the order in which his or her
 1949  application is approved. An eligible student who does not
 1950  receive a scholarship within the fiscal year must be retained on
 1951  the wait list for the subsequent year.
 1952         (e) The student’s household income level does not exceed an
 1953  adjusted maximum percent of the federal poverty level that is
 1954  increased by 25 percent in the fiscal year following any fiscal
 1955  year in which more than 5 percent of the available scholarships
 1956  authorized under subsection (12) (11) have not been awarded.
 1957         (4) TERM OF SCHOLARSHIP.—For purposes of continuity of
 1958  educational choice and program integrity:
 1959         (a)1.Program payments made by the state to an organization
 1960  for a Family Empowerment Scholarship under this section must
 1961  continue until:
 1962         a. The parent does not renew program eligibility;
 1963         b. The organization determines that the student is not
 1964  eligible for program renewal;
 1965         c. The Commissioner of Education suspends or revokes
 1966  program participation or use of funds pursuant to subparagraph
 1967  (b)1.;
 1968         d. The student’s parent has forfeited participation in the
 1969  program for failure to comply with subsection (10);
 1970         e. The student enrolls in a public school, except that a
 1971  student who enters a Department of Juvenile Justice detention
 1972  center for a period of no more than 21 days is not considered to
 1973  have returned to a public school for that purpose; or
 1974         f. The student graduates from high school or attains 21
 1975  years of age, whichever occurs first.
 1976         2. Reimbursements for program expenditures may continue
 1977  until the account balance is expended or the account is closed
 1978  pursuant to paragraph (b) For purposes of continuity of
 1979  educational choice, a Family Empowerment Scholarship shall
 1980  remain in force until the student returns to a public school,
 1981  graduates from high school, or reaches the age of 21, whichever
 1982  occurs first. A scholarship student who enrolls in a public
 1983  school or public school program is considered to have returned
 1984  to a public school for the purpose of determining the end of the
 1985  scholarship’s term. However, if a student enters a Department of
 1986  Juvenile Justice detention center for a period of no more than
 1987  21 days, the student is not considered to have returned to a
 1988  public school for that purpose.
 1989         (b)1.The commissioner shall close a student’s scholarship
 1990  account, and any remaining funds, including, but not limited to,
 1991  contributions made to the Stanley G. Tate Florida Prepaid
 1992  College Program or earnings from or contributions made to the
 1993  Florida College Savings Program using program funds pursuant to
 1994  paragraph (6)(e), revert to the state after:
 1995         a. Denial or revocation of program eligibility by the
 1996  commissioner for fraud or abuse, including, but not limited to,
 1997  the student or the student’s parent accepting any payment,
 1998  refund, or rebate in any manner from a provider of any services
 1999  received pursuant to subsection (6); however, a private school
 2000  may discount tuition if the private school deems it necessary;
 2001         b. Any period of 2 consecutive years after high school
 2002  completion or graduation during which the student has not been
 2003  enrolled in an eligible postsecondary educational institution or
 2004  a program offered by the institution; or
 2005         c. The account has been inactive for 2 consecutive fiscal
 2006  years Upon reasonable notice to the department and the school
 2007  district, the student’s parent may remove the student from the
 2008  private school and place the student in a public school in
 2009  accordance with this section.
 2010         2. The commissioner must notify the parent and the
 2011  organization when a Family Empowerment Scholarship account is
 2012  closed and program funds revert to the state
 2013         (c) Upon reasonable notice to the department, the student’s
 2014  parent may move the student from one participating private
 2015  school to another participating private school.
 2016         (5) SCHOLARSHIP PROHIBITIONS.—A student is not eligible for
 2017  a Family Empowerment Scholarship while he or she is:
 2018         (a) Enrolled in a public school, including, but not limited
 2019  to, the Florida School for the Deaf and the Blind, the College
 2020  Preparatory Boarding Academy, a developmental research school
 2021  authorized under s. 1002.32, or a charter school authorized
 2022  under this chapter;
 2023         (b) Enrolled in a school operating for the purpose of
 2024  providing educational services to youth in a Department of
 2025  Juvenile Justice commitment program;
 2026         (c) Receiving any other educational scholarship pursuant to
 2027  this chapter;
 2028         (d) Not having regular and direct contact with his or her
 2029  private school teachers pursuant to s. 1002.421(1)(i), unless he
 2030  or she is enrolled in a home education program pursuant to s.
 2031  1002.41 Participating in a home education program as defined in
 2032  s. 1002.01(1);
 2033         (e) Participating in a private tutoring program pursuant to
 2034  s. 1002.43; or
 2035         (e)(f) Participating in a virtual school, correspondence
 2036  school, or distance learning program that receives state funding
 2037  pursuant to the student’s participation.
 2038         (6) AUTHORIZED USES OF PROGRAM FUNDS.—Program funds must be
 2039  used to meet the individual educational needs of an eligible
 2040  student and may be spent for the following purposes:
 2041         (a) Instructional materials, including school equipment and
 2042  supplies, and digital devices and Internet access to access
 2043  digital instructional materials.
 2044         (b) Curriculum.
 2045         (c) Tuition or fees associated with full-time or part-time
 2046  enrollment in any of the following:
 2047         1. A home education program, an eligible private school, an
 2048  eligible postsecondary educational institution, or a program
 2049  offered by the postsecondary institution;
 2050         2. A private tutoring program authorized under s. 1002.43,
 2051  a virtual program offered by a department-approved private
 2052  online provider that meets the provider qualifications specified
 2053  in s. 1002.45(2)(a), or a program offered by the Florida Virtual
 2054  School to a private paying student; or
 2055         3. An approved online course offered pursuant to s.
 2056  1003.499 or s. 1004.0961 or a private virtual school that meets
 2057  the requirements of s. 1002.421.
 2058         (d) Fees for nationally standardized, norm-referenced
 2059  achievement tests, Advanced Placement examinations, industry
 2060  certification examinations, assessments related to postsecondary
 2061  education, or other assessments.
 2062         (e) Contributions to the Stanley G. Tate Florida Prepaid
 2063  College Program pursuant to s. 1009.98 or the Florida College
 2064  Savings Program pursuant to s. 1009.981, for the benefit of the
 2065  eligible student.
 2066         (f) Contracted services provided by a public school or
 2067  school district, including classes. A student who receives
 2068  services under a contract under this paragraph is not considered
 2069  enrolled in a public school for eligibility purposes as
 2070  specified in subsection (5).
 2071         (g) Tuition and fees for part-time tutoring services
 2072  provided by a person who holds a valid Florida educator’s
 2073  certificate pursuant to s. 1012.56; a person who holds an
 2074  adjunct teaching certificate pursuant to s. 1012.57; a person
 2075  who has a bachelor’s degree or a graduate degree in the subject
 2076  area in which instruction is given; or a person who has
 2077  demonstrated a mastery of subject area knowledge pursuant to s.
 2078  1012.56(5) or as approved by the department. As used in this
 2079  paragraph, the term “part-time tutoring services” does not
 2080  qualify as regular school attendance as defined in s.
 2081  1003.01(13)(e).
 2082         (h) Fees for summer education programs.
 2083         (i) Fees for after-school education programs.
 2084         (j) Fees for an annual evaluation of educational progress
 2085  by a state-certified teacher under s. 1002.41(1)(f), if this
 2086  option is chosen for a home education student.
 2087         (k)Transportation expenses that may not exceed $750
 2088  annually necessary to meet the student’s educational needs under
 2089  this section.
 2090  
 2091  A provider of any services receiving payments pursuant to this
 2092  subsection may not share, refund, or rebate any moneys from the
 2093  Family Empowerment Scholarship with the parent or participating
 2094  student in any manner.
 2095         (7)(6) SCHOOL DISTRICT OBLIGATIONS.—
 2096         (a) By July 15, 2019, and by April 1 of each year
 2097  thereafter, a school district shall inform all households within
 2098  the district receiving free or reduced-priced meals under the
 2099  National School Lunch Act of their eligibility to apply to the
 2100  department for a Family Empowerment Scholarship. The form of
 2101  such notice shall be provided by the department, and the school
 2102  district shall include the provided form in any normal
 2103  correspondence with eligible households. Such notice is limited
 2104  to once a year.
 2105         (b) Upon receipt of a report of an incident, the school
 2106  principal, or his or her designee, shall provide a copy of the
 2107  report to the parent and investigate the incident to determine
 2108  if the incident must be reported as required by s. 1006.147(4).
 2109  Within 24 hours after receipt of the report, the principal or
 2110  his or her designee shall provide a copy of the report to the
 2111  parent of the alleged offender and to the superintendent. Upon
 2112  conclusion of the investigation or within 15 days after the
 2113  incident was reported, whichever occurs first, the school
 2114  district shall notify the parent of the program and offer the
 2115  parent an opportunity to request and receive a Family
 2116  Empowerment Scholarship.
 2117         (c) The school district in which a participating student
 2118  resides must notify the student and his or her parent about the
 2119  locations and times to take all statewide assessments under s.
 2120  1008.22 if the student chooses to participate in such
 2121  assessments. Upon the request of the department, a school
 2122  district shall coordinate with the department to provide to a
 2123  participating private school the statewide assessments
 2124  administered under s. 1008.22 and any related materials for
 2125  administering the assessments. For a student who participates in
 2126  the Family Empowerment Scholarship Program whose parent requests
 2127  that the student take the statewide assessments under s.
 2128  1008.22, the district in which the student attends a private
 2129  school shall provide locations and times to take all statewide
 2130  assessments. A school district is responsible for implementing
 2131  test administrations at a participating private school,
 2132  including the:
 2133         1. Provision of training for private school staff on test
 2134  security and assessment administration procedures;
 2135         2. Distribution of testing materials to a private school;
 2136         3. Retrieval of testing materials from a private school;
 2137         4. Provision of the required format for a private school to
 2138  submit information to the district for test administration and
 2139  enrollment purposes; and
 2140         5. Provision of any required assistance, monitoring, or
 2141  investigation at a private school.
 2142         (d)(c) Each school district must publish information about
 2143  the Family Empowerment Scholarship Program on the district’s
 2144  website homepage, which,. at a minimum, the published
 2145  information must include a website link to the Family
 2146  Empowerment Scholarship Program published on the Department of
 2147  Education website as well as a telephone number and e-mail that
 2148  students and parents may use to contact relevant personnel in
 2149  the school district to obtain information about the scholarship.
 2150         (8)(7) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
 2151  shall:
 2152         (a) Annually verify the eligibility of nonprofit
 2153  scholarship-funding organizations that meet the requirements of
 2154  paragraph (2)(e).
 2155         (b)(a) Publish and update, as necessary, information on the
 2156  department website about the scholarship programs under this
 2157  chapter Family Empowerment Scholarship Program, including, but
 2158  not limited to, student eligibility criteria, parental
 2159  responsibilities, and relevant data.
 2160         (c)(b) Cross-check prior to each distribution of funds the
 2161  list of participating scholarship students with the public
 2162  school enrollment lists before each scholarship payment to avoid
 2163  duplication.
 2164         (d)(c) Maintain and publish a list of nationally norm
 2165  referenced tests identified for purposes of satisfying the
 2166  testing requirement in subparagraph (9)(c)1. (8)(c)1. The tests
 2167  must meet industry standards of quality in accordance with state
 2168  board rule.
 2169         (e)(d) Notify eligible nonprofit scholarship-funding
 2170  organizations of the deadlines for submitting the verified list
 2171  of students determined to be eligible for an initial or renewal
 2172  scholarship.
 2173         (f)(e)Distribute each student’s scholarship funds on a
 2174  quarterly basis to the eligible nonprofit scholarship-funding
 2175  organization, to be deposited into the student’s account
 2176  Establish deadlines for the receipt of initial applications and
 2177  renewal notifications in order to implement the priority order
 2178  for scholarship awards pursuant to paragraph (3)(d).
 2179         (g) Notify an eligible nonprofit scholarship-funding
 2180  organization of any of the organization’s or other eligible
 2181  nonprofit scholarship-funding organization’s identified students
 2182  who are receiving educational scholarships under this chapter.
 2183         (h)Issue a project grant award to a state university, to
 2184  which participating private schools must report the scores of
 2185  participating students on the nationally norm-referenced tests
 2186  or the statewide assessments administered by the private school
 2187  in grades 3 through 10. The project term is 2 years, and the
 2188  amount of the project is up to $250,000 per year. The project
 2189  grant award must be reissued in 2-year intervals in accordance
 2190  with this paragraph.
 2191         1. The state university must annually report to the
 2192  Department of Education on the student performance of
 2193  participating students:
 2194         a. On a statewide basis. The report shall also include, to
 2195  the extent possible, a comparison of scholarship students’
 2196  performance to the statewide student performance of public
 2197  school students with socioeconomic backgrounds similar to those
 2198  of students participating in the scholarship program. To
 2199  minimize costs and reduce time required for the state
 2200  university’s analysis and evaluation, the Department of
 2201  Education shall coordinate with the state university to provide
 2202  data in order to conduct analyses of matched students from
 2203  public school assessment data and calculate control group
 2204  student performance using an agreed-upon methodology; and
 2205         b. On an individual school basis. For the 2020-2021 school
 2206  year, the annual report must include student performance for
 2207  each participating private school in which at least 51 percent
 2208  of the total enrolled students in the private school
 2209  participated in the Florida Tax Credit Scholarship Program or
 2210  the Family Empowerment Scholarship Program. Beginning with the
 2211  2021-2022 school year, the annual report must include student
 2212  performance for each participating private school in which at
 2213  least 51 percent of the total enrolled students in the private
 2214  school participated in the Family Empowerment Scholarship
 2215  Program. The report shall be according to each participating
 2216  private school, and for participating students, in which there
 2217  are at least 30 participating students who have scores for tests
 2218  administered. If the state university determines that the 30
 2219  participating-student cell size may be reduced without
 2220  disclosing personally identifiable information, as described in
 2221  34 C.F.R. s. 99.12, of a participating student, the state
 2222  university may reduce the participating-student cell size, but
 2223  the cell size may not be reduced to less than 10 participating
 2224  students. The department shall provide each private school’s
 2225  prior school year student enrollment information to the state
 2226  university no later than June 15 of each year, or as requested
 2227  by the state university.
 2228         2. The sharing and reporting of student performance data
 2229  under this paragraph must be in accordance with the requirements
 2230  of ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g, the Family
 2231  Educational Rights and Privacy Act, and the applicable rules and
 2232  regulations issued pursuant thereto, and must be for the sole
 2233  purpose of creating the annual report required by subparagraph
 2234  1. All parties must preserve the confidentiality of such
 2235  information as required by law. The annual report may not
 2236  disaggregate data to a level that will identify individual
 2237  participating schools, except as required under sub-subparagraph
 2238  1.b., or disclose the academic level of individual students.
 2239         3. The annual report required by subparagraph 1. must be
 2240  published by the Department of Education on its website.
 2241         (i) Maintain on its website a list of approved providers,
 2242  including eligible postsecondary educational institutions,
 2243  eligible private schools, and organizations. The department may
 2244  identify or provide links to lists of other approved providers.
 2245         (j) Require each organization to verify eligible
 2246  expenditures before the distribution of funds for any
 2247  expenditures made pursuant to paragraphs (6)(a) and (b). Review
 2248  of expenditures made for services specified in paragraphs
 2249  (6)(c)-(k) may be completed after the purchase is made.
 2250         (k) Require quarterly reports by an eligible nonprofit
 2251  scholarship-funding organization regarding the overall number of
 2252  students participating in the scholarship program, the number of
 2253  home education students participating in the scholarship
 2254  program, the number of students attending a private school
 2255  participating in the scholarship program, the private schools at
 2256  which the students are enrolled, and other information the
 2257  department deems necessary.
 2258         (l) Provide a process to match the direct certification
 2259  list with the scholarship application data submitted by any
 2260  nonprofit scholarship-funding organization eligible to receive
 2261  the 2.5 percent administrative allowance under paragraph
 2262  (11)(k).
 2263         (m) Contract with an independent entity to provide an
 2264  annual evaluation of the program by:
 2265         1. Reviewing the school bullying prevention education
 2266  program, school climate, and code of student conduct of each
 2267  public school from which 10 or more students transferred to
 2268  another public school or private school using the Hope
 2269  Scholarship or Family Empowerment Scholarship to determine areas
 2270  in the school or school district procedures involving reporting,
 2271  investigating, and communicating a parent’s and student’s rights
 2272  which are in need of improvement. At a minimum, the review must
 2273  include:
 2274         a. An assessment of the investigation time and quality of
 2275  the response of the school and the school district.
 2276         b. An assessment of the effectiveness of communication
 2277  procedures with the students involved in an incident, the
 2278  students’ parents, and the school and school district personnel.
 2279         c. An analysis of school incident and discipline data.
 2280         d. The challenges and obstacles relating to implementing
 2281  recommendations from the review.
 2282         2. Reviewing the school bullying prevention education
 2283  program, school climate, and code of student conduct of each
 2284  public school to which a student transferred if the student was
 2285  from a school identified in subparagraph 1. in order to identify
 2286  best practices and make recommendations to the public school at
 2287  which the incidents occurred.
 2288         3. Surveying the parents of participating students to
 2289  determine academic, safety, and school climate satisfaction and
 2290  to identify any challenges to or obstacles in addressing an
 2291  incident or relating to the use of the scholarship.
 2292         (n) Investigate any written complaint of a violation of
 2293  this section by a parent, a student, a private school, a public
 2294  school, a school district, an organization, a provider, or
 2295  another appropriate party in accordance with the process
 2296  established under s. 1002.421.
 2297         (o) Establish and coordinate with the eligible nonprofit
 2298  scholarship-funding organizations an FTE reporting process to
 2299  provide FTE by county by FEFP program and by matrix level of
 2300  services to be used to revise and update the K-12 Education
 2301  Scholarship Program Allocation pursuant to s. 1011.687, for
 2302  inclusion in the FEFP calculations beginning with the FEFP
 2303  calculation following the October student membership survey.
 2304         (9)(8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—To be
 2305  eligible to participate in the Family Empowerment Scholarship
 2306  Program, a private school may be sectarian or nonsectarian and
 2307  must:
 2308         (a) Comply with all requirements for private schools
 2309  participating in state school choice scholarship programs
 2310  pursuant to s. 1002.421.
 2311         (b) Provide to the organization department all
 2312  documentation required for a student’s participation by a date
 2313  established by the organization, including the private school’s
 2314  and student’s fee schedules, at least 30 days before any
 2315  quarterly scholarship payment is made for the student pursuant
 2316  to paragraph (11)(f). A student is not eligible to receive a
 2317  quarterly scholarship payment if the private school fails to
 2318  meet this deadline.
 2319         (c)1. Annually administer or make provision for students
 2320  participating in the program in grades 3 through 10 to take one
 2321  of the nationally norm-referenced tests that are identified by
 2322  the department pursuant to paragraph (8)(d) (7)(c) or to take
 2323  the statewide assessments pursuant to s. 1008.22. Students with
 2324  disabilities for whom standardized testing is not appropriate
 2325  are exempt from this requirement. A participating private school
 2326  shall report a student’s scores to his or her parent. By August
 2327  15 of each year, a participating private school must report the
 2328  scores of all participating students to a state university as
 2329  described in paragraph (8)(h) s. 1002.395(9)(f).
 2330         2. Administer the statewide assessments pursuant to s.
 2331  1008.22 if the private school chooses to offer the statewide
 2332  assessments. A participating private school may choose to offer
 2333  and administer the statewide assessments to all students who
 2334  attend the private school in grades 3 through 10 and must submit
 2335  a request in writing to the department by March 1 of each year
 2336  in order to administer the statewide assessments in the
 2337  subsequent school year.
 2338  
 2339  If a private school fails to meet the requirements of this
 2340  subsection or s. 1002.421, the commissioner may determine that
 2341  the private school is ineligible to participate in the
 2342  scholarship program.
 2343         (10)(9) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 2344  PARTICIPATION.—A parent who applies for a Family Empowerment
 2345  Scholarship is exercising his or her parental option to
 2346  determine the appropriate placement or the services that best
 2347  meet the needs of his or her child place his or her child in a
 2348  private school.
 2349         (a) To satisfy or maintain program eligibility, including
 2350  eligibility to receive and spend program payments, the parent
 2351  must sign an agreement with the organization and annually submit
 2352  a sworn compliance statement to the organization to:
 2353         1. Affirm that the student is enrolled in a program that
 2354  meets regular school attendance requirements as provided in s.
 2355  1003.01(13)(b)-(e).
 2356         2. Affirm that the program funds are used only for
 2357  authorized purposes serving the student’s educational needs, as
 2358  described in subsection (6).
 2359         3. Affirm that the parent is responsible for the education
 2360  of his or her student by, as applicable:
 2361         a. Requiring the student to take an assessment in
 2362  accordance with paragraph (9)(c); or
 2363         b. Providing an annual evaluation in accordance with s.
 2364  1002.41(1)(f).
 2365         4. Affirm that the student remains in good standing with
 2366  the provider or school if those options are selected by the
 2367  parent The parent must select the private school and apply for
 2368  the admission of his or her student.
 2369         (b) The parent must request the scholarship at least 60
 2370  days before the date of the first scholarship payment.
 2371         (c)The parent must inform the applicable school district
 2372  when the parent withdraws his or her student from a public
 2373  school to attend an eligible private school.
 2374         (d) Any student participating in the program must remain in
 2375  attendance throughout the school year unless excused by the
 2376  school for illness or other good cause.
 2377         (c)(e)If Before enrolling in a private school, a student
 2378  and his or her parent or guardian must meet with the private
 2379  school’s principal or the principal’s designee to review the
 2380  school’s academic programs and policies, customized educational
 2381  programs, code of student conduct, and attendance policies.
 2382         (d)(f) The parent shall ensure that a the student
 2383  participating in the scholarship program and who is enrolled in
 2384  a private school takes the norm-referenced assessment offered by
 2385  the private school. The parent may also choose to have the
 2386  student participate in the statewide assessments pursuant to
 2387  paragraph (9)(c) (6)(b).
 2388         (e)(g) If the parent requests that the student
 2389  participating in the program take all statewide assessments
 2390  required pursuant to s. 1008.22, the parent is responsible for
 2391  transporting the student to the assessment site designated by
 2392  the school district.
 2393         (h)Upon receipt of a scholarship warrant, the parent to
 2394  whom the warrant is issued must restrictively endorse the
 2395  warrant to the private school for deposit into the private
 2396  school’s account. The parent may not designate any entity or
 2397  individual associated with the participating private school as
 2398  the parent’s attorney in fact to endorse a scholarship warrant.
 2399  A participant who fails to comply with this paragraph forfeits
 2400  the scholarship.
 2401         (f)(i) The parent must annually renew participation in the
 2402  program by the date established and in a format determined by
 2403  the organization department pursuant to paragraph (7)(e). A
 2404  student whose participation in the program is not renewed may
 2405  continue to spend scholarship funds that are in his or her
 2406  account from prior years unless the account must be closed
 2407  pursuant to paragraph (4)(b).
 2408         (g)The parent is responsible for procuring the services
 2409  necessary to educate the student. If a parent does not procure
 2410  the necessary educational services for the student and the
 2411  student’s account has been inactive for 2 consecutive fiscal
 2412  years, the student is ineligible and the student’s account must
 2413  be closed pursuant to paragraph (4)(b).
 2414         (h)The parent is responsible for all eligible expenses in
 2415  excess of the Family Empowerment Scholarship.
 2416         (i)The parent may not transfer any prepaid college plan or
 2417  college savings plan funds contributed pursuant to paragraph
 2418  (6)(e) to another beneficiary while the plan contains funds
 2419  contributed pursuant to this section.
 2420         (j)The parent may not receive a payment, refund, or rebate
 2421  from an approved provider of any services under this program.
 2422  
 2423  A participant who fails to comply with this subsection forfeits
 2424  the Family Empowerment Scholarship.
 2425         (11)(10) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP
 2426  FUNDING ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 2427  organization:
 2428         (a) Must comply with the antidiscrimination provisions of
 2429  42 U.S.C. s. 2000d.
 2430         (b) Must comply with the following background check
 2431  requirements:
 2432         1. All owners and operators as defined in subparagraph
 2433  (2)(k)1., before employment or engagement to provide services,
 2434  are subject to a level 2 background screening as provided under
 2435  chapter 435. The fingerprints for the background screening must
 2436  be electronically submitted to the Department of Law Enforcement
 2437  and may be taken by an authorized law enforcement agency or by
 2438  an employee of the eligible nonprofit scholarship-funding
 2439  organization or a private company who is trained to take
 2440  fingerprints. However, the complete set of fingerprints of an
 2441  owner or operator may not be taken by the owner or operator. The
 2442  results of the state and national criminal history check must be
 2443  provided to the Department of Education for screening under
 2444  chapter 435. The cost of the background screening may be borne
 2445  by the eligible nonprofit scholarship-funding organization or
 2446  the owner or operator.
 2447         2. Every 5 years following employment or engagement to
 2448  provide services or association with an eligible nonprofit
 2449  scholarship-funding organization, each owner or operator must
 2450  meet level 2 screening standards as described in s. 435.04, at
 2451  which time the nonprofit scholarship-funding organization shall
 2452  request the Department of Law Enforcement to forward the
 2453  fingerprints to the Federal Bureau of Investigation for level 2
 2454  screening. If the fingerprints of an owner or operator are not
 2455  retained by the Department of Law Enforcement under subparagraph
 2456  3., the owner or operator must electronically file a complete
 2457  set of fingerprints with the Department of Law Enforcement. Upon
 2458  submission of fingerprints for this purpose, the eligible
 2459  nonprofit scholarship-funding organization shall request that
 2460  the Department of Law Enforcement forward the fingerprints to
 2461  the Federal Bureau of Investigation for level 2 screening, and
 2462  the fingerprints must be retained by the Department of Law
 2463  Enforcement under subparagraph 3.
 2464         3. Fingerprints submitted to the Department of Law
 2465  Enforcement as required by this paragraph must be retained by
 2466  the Department of Law Enforcement in a manner approved by rule
 2467  and entered in the statewide automated biometric identification
 2468  system authorized by s. 943.05(2)(b). The fingerprints must
 2469  continue to be available for all purposes and uses authorized
 2470  for arrest fingerprints entered in the statewide automated
 2471  biometric identification system pursuant to s. 943.051.
 2472         4. The Department of Law Enforcement shall search all
 2473  arrest fingerprints received under s. 943.051 against the
 2474  fingerprints retained in the statewide automated biometric
 2475  identification system under subparagraph 3. Any arrest record
 2476  that is identified with an owner’s or operator’s fingerprints
 2477  must be reported to the Department of Education. The Department
 2478  of Education shall participate in this search process by paying
 2479  an annual fee to the Department of Law Enforcement and by
 2480  informing the Department of Law Enforcement of any change in the
 2481  employment, engagement, or association status of the owners or
 2482  operators whose fingerprints are retained under subparagraph 3.
 2483  The Department of Law Enforcement shall adopt a rule setting the
 2484  amount of the annual fee to be imposed upon the Department of
 2485  Education for performing these services and establishing the
 2486  procedures for the retention of owner or operator fingerprints
 2487  and the dissemination of search results. The fee may be borne by
 2488  the owner or operator of the nonprofit scholarship-funding
 2489  organization.
 2490         5. A nonprofit scholarship-funding organization whose owner
 2491  or operator fails the level 2 background screening is not
 2492  eligible to provide scholarships under this section.
 2493         6. A nonprofit scholarship-funding organization whose owner
 2494  or operator in the last 7 years has filed for personal
 2495  bankruptcy or corporate bankruptcy in a corporation of which he
 2496  or she owned more than 20 percent is not eligible to provide
 2497  scholarships under this section.
 2498         7. In addition to the offenses listed in s. 435.04, a
 2499  person required to undergo background screening pursuant to this
 2500  part or authorizing statutes may not have an arrest awaiting
 2501  final disposition for, must not have been found guilty of, or
 2502  entered a plea of nolo contendere to, regardless of
 2503  adjudication, and must not have been adjudicated delinquent, and
 2504  the record must not have been sealed or expunged for, any of the
 2505  following offenses or any similar offense of another
 2506  jurisdiction:
 2507         a. Any authorizing statutes, if the offense was a felony.
 2508         b. This chapter, if the offense was a felony.
 2509         c. Section 409.920, relating to Medicaid provider fraud.
 2510         d. Section 409.9201, relating to Medicaid fraud.
 2511         e. Section 741.28, relating to domestic violence.
 2512         f. Section 817.034, relating to fraudulent acts through
 2513  mail, wire, radio, electromagnetic, photoelectronic, or
 2514  photooptical systems.
 2515         g. Section 817.234, relating to false and fraudulent
 2516  insurance claims.
 2517         h. Section 817.505, relating to patient brokering.
 2518         i. Section 817.568, relating to criminal use of personal
 2519  identification information.
 2520         j. Section 817.60, relating to obtaining a credit card
 2521  through fraudulent means.
 2522         k. Section 817.61, relating to fraudulent use of credit
 2523  cards, if the offense was a felony.
 2524         l. Section 831.01, relating to forgery.
 2525         m. Section 831.02, relating to uttering forged instruments.
 2526         n. Section 831.07, relating to forging bank bills, checks,
 2527  drafts, or promissory notes.
 2528         o. Section 831.09, relating to uttering forged bank bills,
 2529  checks, drafts, or promissory notes.
 2530         p. Section 831.30, relating to fraud in obtaining medicinal
 2531  drugs.
 2532         q. Section 831.31, relating to the sale, manufacture,
 2533  delivery, or possession with the intent to sell, manufacture, or
 2534  deliver any counterfeit controlled substance, if the offense was
 2535  a felony.
 2536         (c) May not have an owner or operator who owns or operates
 2537  an eligible private school that is participating in the
 2538  scholarship program.
 2539         (d) Shall establish and maintain separate accounts for each
 2540  eligible student. For each account, the organization must
 2541  maintain a record of accrued interest that is retained in the
 2542  student’s account and available only for authorized program
 2543  expenditures.
 2544         (e) May not restrict or reserve scholarships for use at a
 2545  particular private school.
 2546         (f) Must provide to the Auditor General and the Department
 2547  of Education a report on the results of an annual financial
 2548  audit of its accounts and records conducted by an independent
 2549  certified public accountant in accordance with auditing
 2550  standards generally accepted in the United States, government
 2551  auditing standards, and rules promulgated by the Auditor
 2552  General. The audit report must include a report on financial
 2553  statements presented in accordance with generally accepted
 2554  accounting principles. Audit reports must be provided to the
 2555  Auditor General and the Department of Education within 180 days
 2556  after completion of the eligible nonprofit scholarship-funding
 2557  organization’s fiscal year.
 2558         (g)1.a. Must use agreed-upon procedures that uniformly
 2559  apply to all private schools and determine, at a minimum,
 2560  whether the private school has been verified as eligible by the
 2561  Department of Education under s. 1002.421; has an adequate
 2562  accounting system, system of financial controls, and process for
 2563  deposit and classification of scholarship funds; and has
 2564  properly expended scholarship funds for education-related
 2565  expenses.
 2566         b.Must participate in a joint review of the agreed-upon
 2567  procedures and guidelines under sub-subparagraph a., by February
 2568  of each biennium, if the scholarship-funding organization
 2569  provided more than $250,000 in scholarship funds to an eligible
 2570  private school under this chapter during the state fiscal year
 2571  preceding the biennial review. If the procedures and guidelines
 2572  are revised, the revisions must be provided to private schools
 2573  and the Commissioner of Education by March 15 of the year in
 2574  which the revisions were completed. The revised agreed-upon
 2575  procedures take effect the subsequent school year.
 2576         c.Must monitor the compliance of a private school with s.
 2577  1002.421(1)(q) if the scholarship-funding organization provided
 2578  the majority of the scholarship funding to the school. For each
 2579  private school subject to s. 1002.421(1)(q), the appropriate
 2580  scholarship-funding organization shall annually notify the
 2581  Commissioner of Education by October 30 of:
 2582         (I)A private school’s failure to submit a report required
 2583  under s. 1002.421(1)(q); or
 2584         (II)Any material exceptions set forth in the report
 2585  required under s. 1002.421(1)(q).
 2586         2.Must seek input from the accrediting associations that
 2587  are members of the Florida Association of Academic Nonpublic
 2588  Schools and the Department of Education when conducting a joint
 2589  review of the procedures and guidelines under sub-subparagraph
 2590  1.b.
 2591         (h) Must establish a date by which the parent of a
 2592  participating student must confirm continuing participation in
 2593  the program.
 2594         (i)(a) Shall verify the household income level of students
 2595  pursuant to subparagraph (3)(a)1. and submit the verified list
 2596  of students and related documentation to the department.
 2597         (j)(b) Shall award initial and renewal scholarships to
 2598  eligible students in priority order pursuant to subsection (3)
 2599  and notify parents of their receipt of a scholarship paragraph
 2600  (3)(d). The eligible nonprofit scholarship-funding organization
 2601  shall implement the deadlines established by the department
 2602  pursuant to paragraphs (7)(d) and (e).
 2603         (k)(c) May, from eligible contributions received pursuant
 2604  to s. 1002.395(6)(j)1., use an amount not to exceed 2.5 1
 2605  percent of the total amount of all scholarships awarded under
 2606  this section for administrative expenses associated with
 2607  performing functions under this section, if the organization has
 2608  operated as an eligible nonprofit scholarship-funding
 2609  organization for at least the preceding 3 fiscal years and did
 2610  not have any findings of material weakness or material
 2611  noncompliance in its most recent audit performed pursuant to
 2612  paragraph (f). Such administrative expense amount is considered
 2613  within the 3 percent limit on the total amount an organization
 2614  may use to administer scholarships under this chapter.
 2615         (l) Must verify qualifying educational expenditures
 2616  pursuant to the requirement of paragraph (8)(j) and must request
 2617  the return of any funds used for unauthorized purposes.
 2618         (m) Must return any remaining program funds to the
 2619  department pursuant to paragraph (4)(b).
 2620         (n) Must document each scholarship student’s eligibility
 2621  pursuant to subsection (3) for a fiscal year before granting a
 2622  scholarship for that fiscal year. A student is ineligible for a
 2623  scholarship if the student’s account has been inactive for 2
 2624  fiscal years and the student’s account has been closed pursuant
 2625  to paragraph (4)(b).
 2626         (o) Must allow a student who meets the requirements of
 2627  subparagraph (3)(a)2. or a dependent child of a parent who is a
 2628  member of the United States Armed Forces to apply for a
 2629  scholarship at any time.
 2630         (p)(d) Must, in a timely manner, submit any information
 2631  requested by the department relating to the scholarship under
 2632  this section.
 2633         (q) Must establish a date by which the parent of a
 2634  participating student must confirm continuing participation in
 2635  the program.
 2636         (r) Must prepare and submit quarterly reports to the
 2637  department pursuant to paragraph (8)(k).
 2638         (s)(e) Must notify the department about any violation of
 2639  this section by a parent or a private school.
 2640         (12)(11) SCHOLARSHIP FUNDING AND PAYMENT.—For the purposes
 2641  of this subsection, the term “student FTE” refers to how
 2642  participating students are calculated for the purposes of the
 2643  scholarship program allocation, which is equal to four quarterly
 2644  scholarship payments.
 2645         (a) The scholarship is established for up to 175,000 18,000
 2646  student FTE for students annually beginning in the 2021-2022
 2647  2019-2020 school year. A student who received a Florida Tax
 2648  Credit Scholarship or a Hope Scholarship in the 2020-2021 school
 2649  year and who meets the eligibility requirements in subsection
 2650  (3) for the 2021-2022 school year is eligible for a Family
 2651  Empowerment Scholarship in the 2021-2022 school year. Beginning
 2652  in the 2022-2023 2020-2021 school year, and each year
 2653  thereafter, the maximum number of student FTE students
 2654  participating in the scholarship program under this section
 2655  shall annually increase by 1.0 percent of the state’s total
 2656  public school student enrollment.
 2657         (b) The scholarship amount provided to a student for any
 2658  single school year shall be for tuition and fees for an eligible
 2659  private school, not to exceed annual limits, which shall be
 2660  determined in accordance with this paragraph. The calculated
 2661  scholarship amount for a student participating in the program
 2662  must to attend an eligible private school shall be based upon
 2663  the grade level and school district in which the student was
 2664  assigned as 97.5 95 percent of the funds per unweighted full
 2665  time equivalent in the Florida Education Finance Program for a
 2666  student in the basic program established pursuant to s.
 2667  1011.62(1)(c)1., plus a per-full-time equivalent share of funds
 2668  for all categorical programs, as provided in the General
 2669  Appropriations Act except for the Exceptional Student Education
 2670  Guaranteed Allocation.
 2671         (c) As an alternative, a student who is eligible for a
 2672  Family Empowerment Scholarship is eligible for a transportation
 2673  award limited to $750 annually necessary to meet the student’s
 2674  educational needs under this section, if the student enrolls in
 2675  a Florida public school that is outside the school district in
 2676  which the student resides or is enrolled in a lab school as
 2677  defined in s. 1002.32. These students do not count against the
 2678  175,000 student FTE cap established in paragraph (a) The amount
 2679  of the Family Empowerment Scholarship shall be the calculated
 2680  amount or the amount of the private school’s tuition and fees,
 2681  whichever is less. The amount of any assessment fee required by
 2682  the participating private school may be paid from the total
 2683  amount of the scholarship.
 2684         (d) At the time of each Florida Education Finance Program
 2685  student membership survey, the scholarship-funding organization
 2686  shall report to the department student enrollment, student FTE,
 2687  and total award amounts by county, delineated by the FEFP
 2688  program, and grade for The school district shall report all
 2689  students who are participating in attending a private school
 2690  under this program. The students attending private schools on
 2691  Family Empowerment Scholarships shall be reported separately
 2692  from other students reported for purposes of the Florida
 2693  Education Finance Program.
 2694         (e) Upon Following notification from the organization on
 2695  July 1, September 1, December 1, and or February 1 that an
 2696  application has been approved for the program of the number of
 2697  program participants, the department shall verify that the
 2698  student is not prohibited from receiving a scholarship pursuant
 2699  to subsection (5). The organization must provide the department
 2700  with the documentation necessary to verify the student’s
 2701  participation transfer, from general revenue funds only, the
 2702  amount calculated pursuant to paragraph (b) to a separate
 2703  account for the scholarship program for quarterly disbursement
 2704  to parents of participating students. For a student exiting a
 2705  Department of Juvenile Justice commitment program who chooses to
 2706  participate in the scholarship program, the amount of the Family
 2707  Empowerment Scholarship calculated pursuant to paragraph (b)
 2708  must be transferred from the school district in which the
 2709  student last attended a public school before commitment to the
 2710  Department of Juvenile Justice. When a student enters the
 2711  scholarship program, the department must receive all
 2712  documentation required for the student’s participation,
 2713  including the private school’s and the student’s fee schedules,
 2714  at least 30 days before the first quarterly scholarship payment
 2715  is made for the student.
 2716         (f) Upon verification, the department shall release the
 2717  student’s scholarship funds to the organization, to be deposited
 2718  into the students account notification by the department that
 2719  it has received the documentation required under paragraph (e),
 2720  the Chief Financial Officer shall make scholarship payments in
 2721  four equal amounts no later than September 1, November 1,
 2722  February 1, and April 1 of each school year in which the
 2723  scholarship is in force. The initial payment shall be made after
 2724  department verification of admission acceptance, and subsequent
 2725  payments shall be made upon verification of continued enrollment
 2726  and attendance at the private school. Payment must be by
 2727  individual warrant made payable to the student’s parent and
 2728  mailed by the department to the private school of the parent’s
 2729  choice, and the parent shall restrictively endorse the warrant
 2730  to the private school for deposit into the account of the
 2731  private school.
 2732         (g) Accrued interest in the student’s account is in
 2733  addition to, and not part of, the awarded funds. Program funds
 2734  include both the awarded funds and accrued interest Subsequent
 2735  to each scholarship payment, the department shall request from
 2736  the Department of Financial Services a sample of endorsed
 2737  warrants to review and confirm compliance with endorsement
 2738  requirements.
 2739         (h) The organization may develop a system for payment of
 2740  benefits by funds transfer, including, but not limited to, debit
 2741  cards, electronic payment cards, or any other means of payment
 2742  that the department deems to be commercially viable or cost
 2743  effective. A student’s scholarship award may not be reduced for
 2744  debit card or electronic payment fees. Commodities or services
 2745  related to the development of such a system must be procured by
 2746  competitive solicitation unless they are purchased from a state
 2747  term contract pursuant to s. 287.056.
 2748         (i) Moneys received pursuant to this section do not
 2749  constitute taxable income to the qualified student or parent of
 2750  the qualified student.
 2751         (13) OBLIGATIONS OF THE AUDITOR GENERAL.—
 2752         (a) The Auditor General shall review all audit reports
 2753  submitted pursuant to subsection (11). The Auditor General shall
 2754  request any significant items that were omitted in violation of
 2755  a rule adopted by the Auditor General. The organization shall
 2756  provide such items within 45 days after the date of the request.
 2757  If the organization does not comply with the Auditor General’s
 2758  request, the Auditor General shall notify the Legislative
 2759  Auditing Committee.
 2760         (b) At least once every 3 years, the Auditor General shall
 2761  conduct an operational audit of accounts and records of each
 2762  organization that participates in the program. As part of this
 2763  audit, the Auditor General, at a minimum, must verify the total
 2764  number of students served and the eligibility of reimbursements
 2765  made by the organization and transmit that information to the
 2766  department. The Auditor General must provide the commissioner
 2767  with a copy of each annual operational audit performed pursuant
 2768  to this subsection within 10 days after the audit is finalized.
 2769         (c) The Auditor General shall notify the department of any
 2770  organization that fails to comply with a request for
 2771  information.
 2772         (14) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 2773  APPLICATION.—In order to participate in the scholarship program
 2774  created under this section, a charitable organization that seeks
 2775  to be a nonprofit scholarship-funding organization shall submit
 2776  an application for initial approval or renewal to the Office of
 2777  Independent Education and Parental Choice no later than
 2778  September 1 of each year before the school year for which the
 2779  organization intends to offer scholarships.
 2780         (a) An application for initial approval must include:
 2781         1. A copy of the organization’s incorporation documents and
 2782  registration with the Division of Corporations of the Department
 2783  of State.
 2784         2. A copy of the organization’s Internal Revenue Service
 2785  determination letter as an s. 501(c)(3) not-for-profit
 2786  organization.
 2787         3. A description of the organization’s financial plan that
 2788  demonstrates sufficient funds to operate throughout the school
 2789  year.
 2790         4. A description of the geographic region that the
 2791  organization intends to serve and an analysis of the demand and
 2792  unmet need for eligible students in that area.
 2793         5. The organization’s organizational chart.
 2794         6. A description of the criteria and methodology that the
 2795  organization will use to evaluate scholarship eligibility.
 2796         7. A description of the application process, including
 2797  deadlines and any associated fees.
 2798         8. A description of the deadlines for attendance
 2799  verification and scholarship payments.
 2800         9. A copy of the organization’s policies on conflict of
 2801  interest and whistleblowers.
 2802         10. A copy of a surety bond or letter of credit to secure
 2803  the faithful performance of the obligations of the eligible
 2804  nonprofit scholarship-funding organization in accordance with
 2805  this section in an amount equal to 25 percent of the scholarship
 2806  funds anticipated for each school year or $100,000, whichever is
 2807  greater. The surety bond or letter of credit must specify that
 2808  any claim against the bond or letter of credit may be made only
 2809  by an eligible nonprofit scholarship-funding organization to
 2810  provide scholarships to and on behalf of students who would have
 2811  had scholarships funded if it were not for the diversion of
 2812  funds giving rise to the claim against the bond or letter of
 2813  credit.
 2814         (b) In addition to the information required by
 2815  subparagraphs (a)1.-10., an application for renewal must
 2816  include:
 2817         1. A single surety bond or letter of credit to secure the
 2818  faithful performance of the obligations of the eligible
 2819  nonprofit scholarship-funding organization in accordance with
 2820  this chapter equal to the amount of undisbursed funds held by
 2821  the organization based on the annual report submitted pursuant
 2822  to paragraph (11)(f). The amount of the surety bond or letter of
 2823  credit must be at least $100,000, but not more than $25 million.
 2824  The surety bond or letter of credit must specify that any claim
 2825  against the bond or letter of credit may be made only by an
 2826  eligible nonprofit scholarship-funding organization to provide
 2827  scholarships to and on behalf of students who would have had
 2828  scholarships funded if it were not for the diversion of funds
 2829  giving rise to the claim against the bond or letter of credit.
 2830         2. The organization’s completed Internal Revenue Service
 2831  Form 990 submitted no later than November 30 of the year before
 2832  the school year that the organization intends to offer the
 2833  scholarships, notwithstanding the September 1 application
 2834  deadline.
 2835         3. A copy of the statutorily required audit to the
 2836  Department of Education and Auditor General.
 2837         4. An annual report that includes:
 2838         a. The number of students who completed applications, by
 2839  county and by grade.
 2840         b. The number of students who were approved for
 2841  scholarships, by county and by grade.
 2842         c. The number of students who received funding for
 2843  scholarships within each funding category, by county and by
 2844  grade.
 2845         d. The amount of funds received, the amount of funds
 2846  distributed in scholarships, and an accounting of remaining
 2847  funds and the obligation of those funds.
 2848         e. A detailed accounting of how the organization spent the
 2849  administrative funds allowable under paragraph (11)(k).
 2850         (c) In consultation with the Chief Financial Officer, the
 2851  Office of Independent Education and Parental Choice shall review
 2852  the application. The Department of Education shall notify the
 2853  organization in writing of any deficiencies within 30 days after
 2854  receipt of the application and allow the organization 30 days to
 2855  correct any deficiencies.
 2856         (d) Within 30 days after receipt of the finalized
 2857  application by the Office of Independent Education and Parental
 2858  Choice, the Commissioner of Education shall recommend approval
 2859  or disapproval of the application to the State Board of
 2860  Education. The State Board of Education shall consider the
 2861  application and recommendation at the next scheduled meeting,
 2862  adhering to appropriate meeting notice requirements. If the
 2863  State Board of Education disapproves the organization’s
 2864  application, it shall provide the organization with a written
 2865  explanation of that determination. The State Board of
 2866  Education’s action is not subject to chapter 120.
 2867         (e) If the State Board of Education disapproves the renewal
 2868  of a nonprofit scholarship-funding organization, the
 2869  organization must notify the affected eligible students and
 2870  parents of the decision within 15 days after disapproval. An
 2871  eligible student affected by the disapproval of an
 2872  organization’s participation remains eligible under this section
 2873  until the end of the school year in which the organization was
 2874  disapproved. The student must apply and be accepted by another
 2875  eligible nonprofit scholarship-funding organization for the
 2876  upcoming school year. The student must be given priority in
 2877  accordance with paragraph (3)(d).
 2878         (f) All remaining eligible student accounts with funds held
 2879  by a nonprofit scholarship-funding organization that is
 2880  disapproved for participation must be transferred to the
 2881  student’s account established at the eligible nonprofit
 2882  scholarship-funding organization accepting the student. All
 2883  transferred funds must be deposited by each eligible nonprofit
 2884  scholarship-funding organization receiving such funds into the
 2885  student’s scholarship account. All other remaining funds must be
 2886  transferred to the department. All transferred amounts received
 2887  by any eligible nonprofit scholarship-funding organization must
 2888  be separately disclosed in the annual financial audit required
 2889  under subsection (11).
 2890         (g) A nonprofit scholarship-funding organization is a
 2891  renewing organization if it was approved by the State Board of
 2892  Education for the 2021-2022 fiscal year or after and maintains
 2893  continuous approval and participation in the program. An
 2894  organization that chooses not to participate for 1 year or more
 2895  or is disapproved to participate for 1 year or more must submit
 2896  an application for initial approval in order to participate in
 2897  the program again.
 2898         (h) The State Board of Education shall adopt rules
 2899  providing guidelines for receiving, reviewing, and approving
 2900  applications for new and renewing nonprofit scholarship-funding
 2901  organizations. The rules must include a process for compiling
 2902  input and recommendations from the Chief Financial Officer and
 2903  the Department of Education. The rules must also require that
 2904  the nonprofit scholarship-funding organization make a brief
 2905  presentation to assist the State Board of Education in its
 2906  decision.
 2907         (i) A state university or an independent college or
 2908  university that is eligible to participate in the William L.
 2909  Boyd, IV, Effective Access to Student Education Grant Program,
 2910  is located and chartered in this state, is not for profit, and
 2911  is accredited by the Commission on Colleges of the Southern
 2912  Association of Colleges and Schools is exempt from the initial
 2913  or renewal application process, but must file a registration
 2914  notice with the Department of Education to be an eligible
 2915  nonprofit scholarship-funding organization. The State Board of
 2916  Education shall adopt rules that identify the procedure for
 2917  filing the registration notice with the department. The rules
 2918  must identify appropriate reporting requirements for fiscal,
 2919  programmatic, and performance accountability purposes consistent
 2920  with this section, but may not exceed the requirements for
 2921  eligible nonprofit scholarship-funding organizations for
 2922  charitable organizations.
 2923         (15) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.—
 2924         (a) The Commissioner of Education:
 2925         1. May suspend or revoke program participation or use of
 2926  program funds by the student or participation or eligibility of
 2927  an organization, eligible postsecondary educational institution,
 2928  approved provider, or other party for a violation of this
 2929  section.
 2930         2. May determine the length of, and conditions for lifting,
 2931  a suspension or revocation specified in this subsection.
 2932         3. May recover unexpended program funds or withhold payment
 2933  of an equal amount of program funds to recover program funds
 2934  that were not authorized for use.
 2935         4. Shall deny or terminate program participation upon a
 2936  parent’s forfeiture of a Family Empowerment Scholarship pursuant
 2937  to subsection (10).
 2938         (b) In determining whether to suspend or revoke
 2939  participation or lift a suspension or revocation in accordance
 2940  with this subsection, the commissioner may consider factors that
 2941  include, but are not limited to, acts or omissions that led to a
 2942  previous suspension or revocation of participation in a state or
 2943  federal program or an education scholarship program; failure to
 2944  reimburse the organization for funds improperly received or
 2945  retained; failure to reimburse government funds improperly
 2946  received or retained; imposition of a prior criminal sanction
 2947  related to the person or entity or its officers or employees;
 2948  imposition of a civil fine or administrative fine, license
 2949  revocation or suspension, or program eligibility suspension,
 2950  termination, or revocation related to a person’s or entity’s
 2951  management or operation; or other types of criminal proceedings
 2952  in which the person or entity or its officers or employees were
 2953  found guilty of, regardless of adjudication, or entered a plea
 2954  of nolo contendere or guilty to, any offense involving fraud,
 2955  deceit, dishonesty, or moral turpitude.
 2956         (16)(12) LIABILITY.—No liability shall arise on the part of
 2957  the state based on the award or use of a Family Empowerment
 2958  Scholarship.
 2959         (17)(13) SCOPE OF AUTHORITY.—The inclusion of eligible
 2960  private schools and private providers within the options
 2961  available to Florida public school students does not expand the
 2962  regulatory authority of the state, its officers, or any school
 2963  district to impose any additional regulation of private schools
 2964  beyond those reasonably necessary to enforce requirements
 2965  expressly set forth in this section.
 2966         (18)(14) RULES.—The State Board of Education shall adopt
 2967  rules pursuant to ss. 120.536(1) and 120.54 to administer this
 2968  section. The state board rules must include a requirement that
 2969  the department work collaboratively with an approved
 2970  scholarship-funding organization to expedite the process for the
 2971  verification and reporting obligations specified under
 2972  subsection (11) (10).
 2973         (15) IMPLEMENTATION SCHEDULE FOR THE 2019-2020 SCHOOL
 2974  YEAR.—Notwithstanding the provisions of this section related to
 2975  notification requirements and eligibility timelines, for the
 2976  2019-2020 school year:
 2977         (a) A student is eligible for a Family Empowerment
 2978  Scholarship under this section if the student’s parent has
 2979  obtained acceptance of the student’s admission to a private
 2980  school that is eligible for the program under subsection (8),
 2981  and the parent has requested a scholarship from the Department
 2982  of Education no later than August 15, 2019. The request must be
 2983  communicated directly to the department in a manner that creates
 2984  a written or electronic record of the request and the date of
 2985  receipt of the request.
 2986         (b) The department shall expedite the publication of
 2987  information relevant to the Family Empowerment Scholarship
 2988  Program on the department’s website, including, but not limited
 2989  to, the eligibility criteria for students to qualify for the
 2990  scholarship under this section and how parents may request the
 2991  scholarship. The department must immediately notify the school
 2992  district of the parent’s intent upon receipt of the parent’s
 2993  request.
 2994         (c) Upon notification by the department that it has
 2995  received the documentation required under paragraph (10)(a), the
 2996  Chief Financial Officer shall make the first quarter payment of
 2997  scholarships no later than October 1, 2019.
 2998  
 2999  This subsection shall expire June 30, 2020.
 3000         Section 20. Section 1002.395, Florida Statutes, is amended
 3001  to read:
 3002         1002.395 Florida K-12 Education Tax Credit Scholarship
 3003  Program.—
 3004         (1) FINDINGS AND PURPOSE.—
 3005         (a) The Legislature finds that:
 3006         1. It has the inherent power to determine subjects of
 3007  taxation for general or particular public purposes.
 3008         2. Expanding educational opportunities and improving the
 3009  quality of educational services within the state are valid
 3010  public purposes that the Legislature may promote using its
 3011  sovereign power to determine subjects of taxation and exemptions
 3012  from taxation.
 3013         3. Ensuring that all parents, regardless of means, may
 3014  exercise and enjoy their basic right to educate their children
 3015  as they see fit is a valid public purpose that the Legislature
 3016  may promote using its sovereign power to determine subjects of
 3017  taxation and exemptions from taxation.
 3018         4. Expanding educational opportunities and the healthy
 3019  competition they promote are critical to improving the quality
 3020  of education in the state and to ensuring that all children
 3021  receive the high-quality education to which they are entitled.
 3022         (b) The purpose of this section is to:
 3023         1. Enable taxpayers to designate portions of certain tax
 3024  payments as make private, voluntary contributions for K-12
 3025  education to nonprofit scholarship-funding organizations in
 3026  order to promote the general welfare.
 3027         2. Provide taxpayers who wish to help parents with limited
 3028  resources exercise their basic right to educate their children
 3029  as they see fit with a means to do so.
 3030         3. Promote the general welfare by expanding educational
 3031  opportunities for children of families that have limited
 3032  financial resources.
 3033         4. Enable children in this state to achieve a greater level
 3034  of excellence in their education.
 3035         3.5. Improve the quality of education in this state, both
 3036  by expanding educational opportunities for children and by
 3037  creating incentives for schools to achieve excellence.
 3038         (c) The purpose of this section is not to prescribe the
 3039  standards or curriculum for private schools. A private school
 3040  retains the authority to determine its own standards and
 3041  curriculum.
 3042         (2) DEFINITIONS.—As used in this section, the term:
 3043         (a) “Annual tax credit amount” means, for any state fiscal
 3044  year, the sum of the amount of tax credits approved under
 3045  paragraph (5)(b), including tax credits to be taken under s.
 3046  220.1875 or s. 624.51055, which are approved for a taxpayer
 3047  whose taxable year begins on or after January 1 of the calendar
 3048  year preceding the start of the applicable state fiscal year.
 3049         (b) “Department” means the Department of Revenue.
 3050         (c) “Direct certification list” means the certified list of
 3051  children who qualify for the food assistance program, the
 3052  Temporary Assistance to Needy Families Program, or the Food
 3053  Distribution Program on Indian Reservations provided to the
 3054  Department of Education by the Department of Children and
 3055  Families.
 3056         (b)(d) “Division” means the Division of Alcoholic Beverages
 3057  and Tobacco of the Department of Business and Professional
 3058  Regulation.
 3059         (c)(e) “Eligible contribution” means the taxes, or a
 3060  portion thereof, remitted by the taxpayer to the department or
 3061  the division which the taxpayer elects to designate for K-12
 3062  education a monetary contribution from a taxpayer, subject to
 3063  the restrictions provided in this section, to an eligible
 3064  nonprofit scholarship-funding organization. The taxpayer making
 3065  the contribution may not designate a specific child as the
 3066  beneficiary of the contribution. Once made, such election is
 3067  irrevocable.
 3068         (f) “Eligible nonprofit scholarship-funding organization”
 3069  means a state university; or an independent college or
 3070  university that is eligible to participate in the William L.
 3071  Boyd, IV, Effective Access to Student Education Grant Program,
 3072  located and chartered in this state, is not for profit, and is
 3073  accredited by the Commission on Colleges of the Southern
 3074  Association of Colleges and Schools; or is a charitable
 3075  organization that:
 3076         1. Is exempt from federal income tax pursuant to s.
 3077  501(c)(3) of the Internal Revenue Code;
 3078         2. Is a Florida entity formed under chapter 605, chapter
 3079  607, or chapter 617 and whose principal office is located in the
 3080  state; and
 3081         3. Complies with subsections (6) and (15).
 3082         (g) “Eligible private school” means a private school, as
 3083  defined in s. 1002.01(2), located in Florida which offers an
 3084  education to students in any grades K-12 and that meets the
 3085  requirements in subsection (8).
 3086         (h) “Household income” has the same meaning as the term
 3087  “income” as defined in the Income Eligibility Guidelines for
 3088  free and reduced price meals under the National School Lunch
 3089  Program in 7 C.F.R. part 210 as published in the Federal
 3090  Register by the United States Department of Agriculture.
 3091         (i) “Owner or operator” includes:
 3092         1. An owner, president, officer, or director of an eligible
 3093  nonprofit scholarship-funding organization or a person with
 3094  equivalent decisionmaking authority over an eligible nonprofit
 3095  scholarship-funding organization.
 3096         2. An owner, operator, superintendent, or principal of an
 3097  eligible private school or a person with equivalent
 3098  decisionmaking authority over an eligible private school.
 3099         (j) “Tax credit cap amount” means the maximum annual tax
 3100  credit amount that the department may approve for a state fiscal
 3101  year.
 3102         (k) “Unweighted FTE funding amount” means the statewide
 3103  average total funds per unweighted full-time equivalent funding
 3104  amount that is incorporated by reference in the General
 3105  Appropriations Act, or any subsequent special appropriations
 3106  act, for the applicable state fiscal year.
 3107         (3) PROGRAM; INITIAL SCHOLARSHIP ELIGIBILITY.—
 3108         (a) The Florida Tax Credit Scholarship Program is
 3109  established.
 3110         (b) A student is eligible for a Florida tax credit
 3111  scholarship under this section if the student meets one or more
 3112  of the following criteria:
 3113         1. The student is on the direct certification list or the
 3114  student’s household income level does not exceed 260 percent of
 3115  the federal poverty level; or
 3116         2. The student is currently placed, or during the previous
 3117  state fiscal year was placed, in foster care or in out-of-home
 3118  care as defined in s. 39.01.
 3119  
 3120  Priority must be given to a student whose household income level
 3121  does not exceed 185 percent of the federal poverty level or who
 3122  is in foster care or out-of-home care. A student who initially
 3123  receives a scholarship based on eligibility under this paragraph
 3124  remains eligible to participate until he or she graduates from
 3125  high school or attains the age of 21 years, whichever occurs
 3126  first, regardless of the student’s household income level. A
 3127  sibling of a student who is participating in the scholarship
 3128  program under this subsection is eligible for a scholarship if
 3129  the student resides in the same household as the sibling.
 3130         (4) SCHOLARSHIP PROHIBITIONS.—A student is not eligible for
 3131  a scholarship while he or she is:
 3132         (a) Enrolled in a school operating for the purpose of
 3133  providing educational services to youth in Department of
 3134  Juvenile Justice commitment programs;
 3135         (b) Receiving a scholarship from another eligible nonprofit
 3136  scholarship-funding organization under this section;
 3137         (c) Receiving an educational scholarship pursuant to
 3138  chapter 1002;
 3139         (d) Participating in a home education program as defined in
 3140  s. 1002.01(1);
 3141         (e) Participating in a private tutoring program pursuant to
 3142  s. 1002.43;
 3143         (f) Participating in a virtual school, correspondence
 3144  school, or distance learning program that receives state funding
 3145  pursuant to the student’s participation unless the participation
 3146  is limited to no more than two courses per school year; or
 3147         (g) Enrolled in the Florida School for the Deaf and the
 3148  Blind.
 3149         (5)K-12 EDUCATION SCHOLARSHIP FUNDING TAX CREDITS;
 3150  LIMITATIONS.—
 3151         (a)1. The tax credit cap amount is $229 million in the
 3152  2012-2013 state fiscal year.
 3153         2. In the 2013-2014 state fiscal year and each state fiscal
 3154  year thereafter, the tax credit cap amount is the tax credit cap
 3155  amount in the prior state fiscal year. However, in any state
 3156  fiscal year when the annual tax credit amount for the prior
 3157  state fiscal year is equal to or greater than 90 percent of the
 3158  tax credit cap amount applicable to that state fiscal year, the
 3159  tax credit cap amount shall increase by 25 percent. The
 3160  Department of Education and Department of Revenue shall publish
 3161  on their websites information identifying the tax credit cap
 3162  amount when it is increased pursuant to this subparagraph.
 3163         (a)(b) A taxpayer may elect to make eligible contributions
 3164  submit an application to the department or the division for a
 3165  tax credit or credits under one or more of s. 211.0251, s.
 3166  212.1831, s. 212.1832, s. 220.1875, s. 561.1211, or s.
 3167  624.51055. For elections related to taxes imposed under chapter
 3168  211, chapter 212, or chapter 561, the taxpayer shall make the
 3169  election on a return filed with the department or the division.
 3170  For elections related to taxes imposed under chapter 220 or
 3171  chapter 624, the taxpayer shall make the election when making
 3172  the estimated payment.
 3173         (b) The taxpayer shall specify the amount of the eligible
 3174  contribution, which amount may not exceed:
 3175         1.For elections under s. 211.0251, 50 percent of the tax
 3176  due on the return on which the election is made.
 3177         2.For elections under s. 212.1831, 100 percent of the tax
 3178  due on the return on which the election is made.
 3179         3. For elections under s. 212.1832, each eligible
 3180  contribution is limited to a single designation of $105 per
 3181  motor vehicle made at the time of purchase of a motor vehicle or
 3182  a single designation of $105 per motor vehicle made at the time
 3183  registration of a motor vehicle that was not purchased from a
 3184  dealer, except that a contribution may not exceed the state tax
 3185  imposed under chapter 212 which would otherwise be collected
 3186  from the purchaser by a dealer, designated agent, or private tag
 3187  agent.
 3188         4.For elections under s. 220.1875, 25 percent of the final
 3189  tax liability shown on the taxpayer’s Florida Corporate
 3190  Income/Franchise Tax Return for the taxable year immediately
 3191  preceding the most recent completed taxable year. This
 3192  limitation applies to each estimated payment made. However, a
 3193  taxpayer may not designate an eligible contribution on more than
 3194  4 estimated payments in any taxable year.
 3195         5.For elections under s. 561.1211, 90 percent of the tax
 3196  due on the return on which the election is made.
 3197         6.For elections under s. 624.51055, 33 percent of the tax
 3198  due for the prior taxable year under s. 624.509(1) after
 3199  deducting from such tax the prior year’s deductions for
 3200  assessments made pursuant to s. 440.51; credits for taxes paid
 3201  under ss. 175.101 and 185.08; credits for income taxes paid
 3202  under chapter 220; and the credit allowed under s. 624.509(5),
 3203  as such credit is limited by s. 624.509(6). This limitation
 3204  applies to each installment payment made. However, a taxpayer
 3205  may not designate an eligible contribution on more than 3
 3206  installment payments in any taxable year.
 3207         1. The taxpayer shall specify in the application each tax
 3208  for which the taxpayer requests a credit and the applicable
 3209  taxable year for a credit under s. 220.1875 or s. 624.51055 or
 3210  the applicable state fiscal year for a credit under s. 211.0251,
 3211  s. 212.1831, or s. 561.1211. For purposes of s. 220.1875, a
 3212  taxpayer may apply for a credit to be used for a prior taxable
 3213  year before the date the taxpayer is required to file a return
 3214  for that year pursuant to s. 220.222. For purposes of s.
 3215  624.51055, a taxpayer may apply for a credit to be used for a
 3216  prior taxable year before the date the taxpayer is required to
 3217  file a return for that prior taxable year pursuant to ss.
 3218  624.509 and 624.5092. The department shall approve tax credits
 3219  on a first-come, first-served basis and must obtain the
 3220  division’s approval before approving a tax credit under s.
 3221  561.1211.
 3222         2. Within 10 days after approving or denying an
 3223  application, the department shall provide a copy of its approval
 3224  or denial letter to the eligible nonprofit scholarship-funding
 3225  organization specified by the taxpayer in the application.
 3226         (c) If a tax credit approved under paragraph (b) is not
 3227  fully used within the specified state fiscal year for credits
 3228  under s. 211.0251, s. 212.1831, or s. 561.1211, or against taxes
 3229  due for the specified taxable year for credits under s.
 3230  220.1875, or s. 624.51055 is not fully used because of
 3231  insufficient tax liability on the part of the taxpayer, the
 3232  unused amount shall be carried forward for a period not to
 3233  exceed 10 years. For purposes of s. 220.1875, a credit carried
 3234  forward may be used in a subsequent year after applying the
 3235  other credits and unused carryovers in the order provided in s.
 3236  220.02(8).
 3237         (d) Subsequent to the limitations in s. 215.26(2), the
 3238  unused amount of a tax credit, or any portion thereof, which is
 3239  carried forward as provided in paragraph (c) may be refunded to
 3240  the taxpayer upon written request, or as otherwise directed by
 3241  the department. Refunded amounts are no longer designations for
 3242  K-12 funding A taxpayer may not convey, assign, or transfer an
 3243  approved tax credit or a carryforward tax credit to another
 3244  entity unless all of the assets of the taxpayer are conveyed,
 3245  assigned, or transferred in the same transaction. The department
 3246  may offset incoming contributions designated for K-12 education
 3247  with requests for refunds. Funds from the Florida K-12 Education
 3248  Tax Credit Program Trust Fund may be used to pay refunds
 3249  However, a tax credit under s. 211.0251, s. 212.1831, s.
 3250  220.1875, s. 561.1211, or s. 624.51055 may be conveyed,
 3251  transferred, or assigned between members of an affiliated group
 3252  of corporations if the type of tax credit under s. 211.0251, s.
 3253  212.1831, s. 220.1875, s. 561.1211, or s. 624.51055 remains the
 3254  same. A taxpayer shall notify the department of its intent to
 3255  convey, transfer, or assign a tax credit to another member
 3256  within an affiliated group of corporations. The amount conveyed,
 3257  transferred, or assigned is available to another member of the
 3258  affiliated group of corporations upon approval by the
 3259  department. The department shall obtain the division’s approval
 3260  before approving a conveyance, transfer, or assignment of a tax
 3261  credit under s. 561.1211.
 3262         (e) For elections made between July 1, 2021, and December
 3263  31, 2021, for tax credits under ss. 211.0251, 212.1831,
 3264  220.1875, and 624.51055, an eligible contribution must be
 3265  remitted by electronically submitting a separate designation or
 3266  contribution payment to the department. The department shall
 3267  provide the taxpayer with a receipt for the contribution. This
 3268  paragraph expires July 1, 2022 Within any state fiscal year, a
 3269  taxpayer may rescind all or part of a tax credit approved under
 3270  paragraph (b). The amount rescinded shall become available for
 3271  that state fiscal year to another eligible taxpayer as approved
 3272  by the department if the taxpayer receives notice from the
 3273  department that the rescindment has been accepted by the
 3274  department. The department must obtain the division’s approval
 3275  prior to accepting the rescindment of a tax credit under s.
 3276  561.1211. Any amount rescinded under this paragraph shall become
 3277  available to an eligible taxpayer on a first-come, first-served
 3278  basis based on tax credit applications received after the date
 3279  the rescindment is accepted by the department.
 3280         (f) Within 10 days after approving or denying the
 3281  conveyance, transfer, or assignment of a tax credit under
 3282  paragraph (d), or the rescindment of a tax credit under
 3283  paragraph (e), the department shall provide a copy of its
 3284  approval or denial letter to the eligible nonprofit scholarship
 3285  funding organization specified by the taxpayer. The department
 3286  shall also include the eligible nonprofit scholarship-funding
 3287  organization specified by the taxpayer on all letters or
 3288  correspondence of acknowledgment for tax credits under s.
 3289  212.1831.
 3290         (g) For purposes of calculating the underpayment of
 3291  estimated corporate income taxes pursuant to s. 220.34 and tax
 3292  installment payments for taxes on insurance premiums or
 3293  assessments under s. 624.5092, the final amount due is the
 3294  amount after credits earned under s. 220.1875 or s. 624.51055
 3295  for contributions to eligible nonprofit scholarship-funding
 3296  organizations are deducted.
 3297         1. For purposes of determining if a penalty or interest
 3298  shall be imposed for underpayment of estimated corporate income
 3299  tax pursuant to s. 220.34(2)(d)1., a taxpayer may, after earning
 3300  a credit under s. 220.1875, reduce any estimated payment in that
 3301  taxable year by the amount of the credit. This subparagraph
 3302  applies to contributions made on or after July 1, 2014.
 3303         2. For purposes of determining if a penalty under s.
 3304  624.5092 shall be imposed, an insurer, after earning a credit
 3305  under s. 624.51055 for a taxable year, may reduce any
 3306  installment payment for such taxable year of 27 percent of the
 3307  amount of the net tax due as reported on the return for the
 3308  preceding year under s. 624.5092(2)(b) by the amount of the
 3309  credit. This subparagraph applies to contributions made on or
 3310  after July 1, 2014.
 3311         (6) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
 3312  ORGANIZATIONS.—An eligible nonprofit scholarship-funding
 3313  organization:
 3314         (a) Must comply with the antidiscrimination provisions of
 3315  42 U.S.C. s. 2000d.
 3316         (b) Must comply with the following background check
 3317  requirements:
 3318         1. All owners and operators as defined in subparagraph
 3319  (2)(i)1. are, before employment or engagement to provide
 3320  services, subject to level 2 background screening as provided
 3321  under chapter 435. The fingerprints for the background screening
 3322  must be electronically submitted to the Department of Law
 3323  Enforcement and can be taken by an authorized law enforcement
 3324  agency or by an employee of the eligible nonprofit scholarship
 3325  funding organization or a private company who is trained to take
 3326  fingerprints. However, the complete set of fingerprints of an
 3327  owner or operator may not be taken by the owner or operator. The
 3328  results of the state and national criminal history check shall
 3329  be provided to the Department of Education for screening under
 3330  chapter 435. The cost of the background screening may be borne
 3331  by the eligible nonprofit scholarship-funding organization or
 3332  the owner or operator.
 3333         2. Every 5 years following employment or engagement to
 3334  provide services or association with an eligible nonprofit
 3335  scholarship-funding organization, each owner or operator must
 3336  meet level 2 screening standards as described in s. 435.04, at
 3337  which time the nonprofit scholarship-funding organization shall
 3338  request the Department of Law Enforcement to forward the
 3339  fingerprints to the Federal Bureau of Investigation for level 2
 3340  screening. If the fingerprints of an owner or operator are not
 3341  retained by the Department of Law Enforcement under subparagraph
 3342  3., the owner or operator must electronically file a complete
 3343  set of fingerprints with the Department of Law Enforcement. Upon
 3344  submission of fingerprints for this purpose, the eligible
 3345  nonprofit scholarship-funding organization shall request that
 3346  the Department of Law Enforcement forward the fingerprints to
 3347  the Federal Bureau of Investigation for level 2 screening, and
 3348  the fingerprints shall be retained by the Department of Law
 3349  Enforcement under subparagraph 3.
 3350         3. Fingerprints submitted to the Department of Law
 3351  Enforcement as required by this paragraph must be retained by
 3352  the Department of Law Enforcement in a manner approved by rule
 3353  and entered in the statewide automated biometric identification
 3354  system authorized by s. 943.05(2)(b). The fingerprints must
 3355  thereafter be available for all purposes and uses authorized for
 3356  arrest fingerprints entered in the statewide automated biometric
 3357  identification system pursuant to s. 943.051.
 3358         4. The Department of Law Enforcement shall search all
 3359  arrest fingerprints received under s. 943.051 against the
 3360  fingerprints retained in the statewide automated biometric
 3361  identification system under subparagraph 3. Any arrest record
 3362  that is identified with an owner’s or operator’s fingerprints
 3363  must be reported to the Department of Education. The Department
 3364  of Education shall participate in this search process by paying
 3365  an annual fee to the Department of Law Enforcement and by
 3366  informing the Department of Law Enforcement of any change in the
 3367  employment, engagement, or association status of the owners or
 3368  operators whose fingerprints are retained under subparagraph 3.
 3369  The Department of Law Enforcement shall adopt a rule setting the
 3370  amount of the annual fee to be imposed upon the Department of
 3371  Education for performing these services and establishing the
 3372  procedures for the retention of owner and operator fingerprints
 3373  and the dissemination of search results. The fee may be borne by
 3374  the owner or operator of the nonprofit scholarship-funding
 3375  organization.
 3376         5. A nonprofit scholarship-funding organization whose owner
 3377  or operator fails the level 2 background screening is not
 3378  eligible to provide scholarships under this section.
 3379         6. A nonprofit scholarship-funding organization whose owner
 3380  or operator in the last 7 years has filed for personal
 3381  bankruptcy or corporate bankruptcy in a corporation of which he
 3382  or she owned more than 20 percent shall not be eligible to
 3383  provide scholarships under this section.
 3384         7. In addition to the offenses listed in s. 435.04, a
 3385  person required to undergo background screening pursuant to this
 3386  part or authorizing statutes must not have an arrest awaiting
 3387  final disposition for, must not have been found guilty of, or
 3388  entered a plea of nolo contendere to, regardless of
 3389  adjudication, and must not have been adjudicated delinquent, and
 3390  the record must not have been sealed or expunged for, any of the
 3391  following offenses or any similar offense of another
 3392  jurisdiction:
 3393         a. Any authorizing statutes, if the offense was a felony.
 3394         b. This chapter, if the offense was a felony.
 3395         c. Section 409.920, relating to Medicaid provider fraud.
 3396         d. Section 409.9201, relating to Medicaid fraud.
 3397         e. Section 741.28, relating to domestic violence.
 3398         f. Section 817.034, relating to fraudulent acts through
 3399  mail, wire, radio, electromagnetic, photoelectronic, or
 3400  photooptical systems.
 3401         g. Section 817.234, relating to false and fraudulent
 3402  insurance claims.
 3403         h. Section 817.505, relating to patient brokering.
 3404         i. Section 817.568, relating to criminal use of personal
 3405  identification information.
 3406         j. Section 817.60, relating to obtaining a credit card
 3407  through fraudulent means.
 3408         k. Section 817.61, relating to fraudulent use of credit
 3409  cards, if the offense was a felony.
 3410         l. Section 831.01, relating to forgery.
 3411         m. Section 831.02, relating to uttering forged instruments.
 3412         n. Section 831.07, relating to forging bank bills, checks,
 3413  drafts, or promissory notes.
 3414         o. Section 831.09, relating to uttering forged bank bills,
 3415  checks, drafts, or promissory notes.
 3416         p. Section 831.30, relating to fraud in obtaining medicinal
 3417  drugs.
 3418         q. Section 831.31, relating to the sale, manufacture,
 3419  delivery, or possession with the intent to sell, manufacture, or
 3420  deliver any counterfeit controlled substance, if the offense was
 3421  a felony.
 3422         (c) Must not have an owner or operator who owns or operates
 3423  an eligible private school that is participating in the
 3424  scholarship program.
 3425         (d) Must provide scholarships, from eligible contributions,
 3426  to eligible students for the cost of:
 3427         1. Tuition and fees for an eligible private school; or
 3428         2. Transportation to a Florida public school in which a
 3429  student is enrolled and that is different from the school to
 3430  which the student was assigned or to a lab school as defined in
 3431  s. 1002.32.
 3432         (e) Must give first priority to eligible renewal students
 3433  who received a scholarship from an eligible nonprofit
 3434  scholarship-funding organization or from the State of Florida
 3435  during the previous school year. The eligible nonprofit
 3436  scholarship-funding organization must fully apply and exhaust
 3437  all funds available under this section and s. 1002.40(11)(i) for
 3438  renewal scholarship awards before awarding any initial
 3439  scholarships.
 3440         (f) Must provide a renewal or initial scholarship to an
 3441  eligible student on a first-come, first-served basis unless the
 3442  student qualifies for priority pursuant to paragraph (e). Each
 3443  eligible nonprofit scholarship-funding organization must refer
 3444  any student eligible for a scholarship pursuant to this section
 3445  who did not receive a renewal or initial scholarship based
 3446  solely on the lack of available funds under this section and s.
 3447  1002.40(11)(i) to another eligible nonprofit scholarship-funding
 3448  organization that may have funds available.
 3449         (g) May not restrict or reserve scholarships for use at a
 3450  particular private school or provide scholarships to a child of
 3451  an owner or operator.
 3452         (h) Must allow a student in foster care or out-of-home care
 3453  or a dependent child of a parent who is a member of the United
 3454  States Armed Forces to apply for a scholarship at any time.
 3455         (i) Must allow an eligible student to attend any eligible
 3456  private school and must allow a parent to transfer a scholarship
 3457  during a school year to any other eligible private school of the
 3458  parent’s choice.
 3459         (j)1. May use eligible contributions received pursuant to
 3460  this section and ss. 212.099, 212.1832, and 1002.40 during the
 3461  state fiscal year in which such contributions are collected for
 3462  administrative expenses if the organization has operated as an
 3463  eligible nonprofit scholarship-funding organization for at least
 3464  the preceding 3 fiscal years and did not have any findings of
 3465  material weakness or material noncompliance in its most recent
 3466  audit under paragraph (m). Administrative expenses from eligible
 3467  contributions may not exceed 3 percent of the total amount of
 3468  all scholarships awarded by an eligible scholarship-funding
 3469  organization under this chapter. Such administrative expenses
 3470  must be reasonable and necessary for the organization’s
 3471  management and distribution of scholarships awarded under this
 3472  chapter. No funds authorized under this subparagraph shall be
 3473  used for lobbying or political activity or expenses related to
 3474  lobbying or political activity. Up to one-third of the funds
 3475  authorized for administrative expenses under this subparagraph
 3476  may be used for expenses related to the recruitment of
 3477  contributions from taxpayers. An eligible nonprofit scholarship
 3478  funding organization may not charge an application fee.
 3479         2. Must expend for annual or partial-year scholarships an
 3480  amount equal to or greater than 75 percent of the net eligible
 3481  contributions remaining after administrative expenses during the
 3482  state fiscal year in which such contributions are collected. No
 3483  more than 25 percent of such net eligible contributions may be
 3484  carried forward to the following state fiscal year. All amounts
 3485  carried forward, for audit purposes, must be specifically
 3486  identified for particular students, by student name and the name
 3487  of the school to which the student is admitted, subject to the
 3488  requirements of ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g,
 3489  and the applicable rules and regulations issued pursuant
 3490  thereto. Any amounts carried forward shall be expended for
 3491  annual or partial-year scholarships in the following state
 3492  fiscal year. No later than September 30 of each year, net
 3493  eligible contributions remaining on June 30 of each year that
 3494  are in excess of the 25 percent that may be carried forward
 3495  shall be used to provide scholarships to eligible students or
 3496  transferred to other eligible nonprofit scholarship-funding
 3497  organizations to provide scholarships for eligible students. All
 3498  transferred funds must be deposited by each eligible nonprofit
 3499  scholarship-funding organization receiving such funds into its
 3500  scholarship account. All transferred amounts received by any
 3501  eligible nonprofit scholarship-funding organization must be
 3502  separately disclosed in the annual financial audit required
 3503  under paragraph (m).
 3504         3. Must, before granting a scholarship for an academic
 3505  year, document each scholarship student’s eligibility for that
 3506  academic year. A scholarship-funding organization may not grant
 3507  multiyear scholarships in one approval process.
 3508         (k) Must maintain separate accounts for scholarship funds
 3509  and operating funds.
 3510         (l) With the prior approval of the Department of Education,
 3511  may transfer funds to another eligible nonprofit scholarship
 3512  funding organization if additional funds are required to meet
 3513  scholarship demand at the receiving nonprofit scholarship
 3514  funding organization. A transfer is limited to the greater of
 3515  $500,000 or 20 percent of the total contributions received by
 3516  the nonprofit scholarship-funding organization making the
 3517  transfer. All transferred funds must be deposited by the
 3518  receiving nonprofit scholarship-funding organization into its
 3519  scholarship accounts. All transferred amounts received by any
 3520  nonprofit scholarship-funding organization must be separately
 3521  disclosed in the annual financial and compliance audit required
 3522  in this section.
 3523         (m) Must provide to the Auditor General and the Department
 3524  of Education a report on the results of an annual financial
 3525  audit of its accounts and records conducted by an independent
 3526  certified public accountant in accordance with auditing
 3527  standards generally accepted in the United States, government
 3528  auditing standards, and rules promulgated by the Auditor
 3529  General. The audit report must include a report on financial
 3530  statements presented in accordance with generally accepted
 3531  accounting principles. Audit reports must be provided to the
 3532  Auditor General and the Department of Education within 180 days
 3533  after completion of the eligible nonprofit scholarship-funding
 3534  organization’s fiscal year. The Auditor General shall review all
 3535  audit reports submitted pursuant to this paragraph. The Auditor
 3536  General shall request any significant items that were omitted in
 3537  violation of a rule adopted by the Auditor General. The items
 3538  must be provided within 45 days after the date of the request.
 3539  If the scholarship-funding organization does not comply with the
 3540  Auditor General’s request, the Auditor General shall notify the
 3541  Legislative Auditing Committee.
 3542         (n) Must prepare and submit quarterly reports to the
 3543  Department of Education pursuant to paragraph (9)(i). In
 3544  addition, an eligible nonprofit scholarship-funding organization
 3545  must submit in a timely manner any information requested by the
 3546  Department of Education relating to the scholarship program.
 3547         (o)1.a. Must participate in the joint development of
 3548  agreed-upon procedures during the 2009-2010 state fiscal year.
 3549  The agreed-upon procedures must uniformly apply to all private
 3550  schools and must determine, at a minimum, whether the private
 3551  school has been verified as eligible by the Department of
 3552  Education under s. 1002.421; has an adequate accounting system,
 3553  system of financial controls, and process for deposit and
 3554  classification of scholarship funds; and has properly expended
 3555  scholarship funds for education-related expenses. During the
 3556  development of the procedures, the participating scholarship
 3557  funding organizations shall specify guidelines governing the
 3558  materiality of exceptions that may be found during the
 3559  accountant’s performance of the procedures. The procedures and
 3560  guidelines shall be provided to private schools and the
 3561  Commissioner of Education by March 15, 2011.
 3562         b. Must participate in a joint review of the agreed-upon
 3563  procedures and guidelines developed under sub-subparagraph a.,
 3564  by February of each biennium, if the scholarship-funding
 3565  organization provided more than $250,000 in scholarship funds to
 3566  an eligible private school under this chapter during the state
 3567  fiscal year preceding the biennial review. If the procedures and
 3568  guidelines are revised, the revisions must be provided to
 3569  private schools and the Commissioner of Education by March 15 of
 3570  the year in which the revisions were completed. The revised
 3571  agreed-upon procedures shall take effect the subsequent school
 3572  year. For the 2018-2019 school year only, the joint review of
 3573  the agreed-upon procedures must be completed and the revisions
 3574  submitted to the commissioner no later than September 15, 2018.
 3575  The revised procedures are applicable to the 2018-2019 school
 3576  year.
 3577         c. Must monitor the compliance of a private school with s.
 3578  1002.421(1)(q) if the scholarship-funding organization provided
 3579  the majority of the scholarship funding to the school. For each
 3580  private school subject to s. 1002.421(1)(q), the appropriate
 3581  scholarship-funding organization shall annually notify the
 3582  Commissioner of Education by October 30 of:
 3583         (I) A private school’s failure to submit a report required
 3584  under s. 1002.421(1)(q); or
 3585         (II) Any material exceptions set forth in the report
 3586  required under s. 1002.421(1)(q).
 3587         2. Must seek input from the accrediting associations that
 3588  are members of the Florida Association of Academic Nonpublic
 3589  Schools and the Department of Education when jointly developing
 3590  the agreed-upon procedures and guidelines under sub-subparagraph
 3591  1.a. and conducting a review of those procedures and guidelines
 3592  under sub-subparagraph 1.b.
 3593         (p) Must maintain the surety bond or letter of credit
 3594  required by subsection (15). The amount of the surety bond or
 3595  letter of credit may be adjusted quarterly to equal the actual
 3596  amount of undisbursed funds based upon submission by the
 3597  organization of a statement from a certified public accountant
 3598  verifying the amount of undisbursed funds. The requirements of
 3599  this paragraph are waived if the cost of acquiring a surety bond
 3600  or letter of credit exceeds the average 10-year cost of
 3601  acquiring a surety bond or letter of credit by 200 percent. The
 3602  requirements of this paragraph are waived for a state
 3603  university; or an independent college or university which is
 3604  eligible to participate in the William L. Boyd, IV, Effective
 3605  Access to Student Education Grant Program, located and chartered
 3606  in this state, is not for profit, and is accredited by the
 3607  Commission on Colleges of the Southern Association of Colleges
 3608  and Schools.
 3609         (q) Must provide to the Auditor General any information or
 3610  documentation requested in connection with an operational audit
 3611  of a scholarship funding organization conducted pursuant to s.
 3612  11.45.
 3613  
 3614  Information and documentation provided to the Department of
 3615  Education and the Auditor General relating to the identity of a
 3616  taxpayer that provides an eligible contribution under this
 3617  section shall remain confidential at all times in accordance
 3618  with s. 213.053.
 3619         (7) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 3620  PARTICIPATION.—
 3621         (a) The parent must select an eligible private school and
 3622  apply for the admission of his or her child.
 3623         (b) The parent must inform the child’s school district when
 3624  the parent withdraws his or her child to attend an eligible
 3625  private school.
 3626         (c) Any student participating in the scholarship program
 3627  must remain in attendance throughout the school year unless
 3628  excused by the school for illness or other good cause.
 3629         (d) Each parent and each student has an obligation to the
 3630  private school to comply with the private school’s published
 3631  policies.
 3632         (e) The parent shall ensure that the student participating
 3633  in the scholarship program takes the norm-referenced assessment
 3634  offered by the private school. The parent may also choose to
 3635  have the student participate in the statewide assessments
 3636  pursuant to s. 1008.22. If the parent requests that the student
 3637  participating in the scholarship program take statewide
 3638  assessments pursuant to s. 1008.22 and the private school has
 3639  not chosen to offer and administer the statewide assessments,
 3640  the parent is responsible for transporting the student to the
 3641  assessment site designated by the school district.
 3642         (f) Upon receipt of a scholarship warrant from the eligible
 3643  nonprofit scholarship-funding organization, the parent to whom
 3644  the warrant is made must restrictively endorse the warrant to
 3645  the private school for deposit into the account of the private
 3646  school. If payments are made by funds transfer, the parent must
 3647  approve each payment before the scholarship funds may be
 3648  deposited. The parent may not designate any entity or individual
 3649  associated with the participating private school as the parent’s
 3650  attorney in fact to endorse a scholarship warrant or approve a
 3651  funds transfer. A participant who fails to comply with this
 3652  paragraph forfeits the scholarship.
 3653         (g) The parent shall authorize the nonprofit scholarship
 3654  funding organization to access information needed for income
 3655  eligibility determination and verification held by other state
 3656  or federal agencies, including the Department of Revenue, the
 3657  Department of Children and Families, the Department of
 3658  Education, the Department of Economic Opportunity, and the
 3659  Agency for Health Care Administration.
 3660         (8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible
 3661  private school may be sectarian or nonsectarian and must:
 3662         (a) Comply with all requirements for private schools
 3663  participating in state school choice scholarship programs
 3664  pursuant to s. 1002.421.
 3665         (b)1. Annually administer or make provision for students
 3666  participating in the scholarship program in grades 3 through 10
 3667  to take one of the nationally norm-referenced tests identified
 3668  by the Department of Education or the statewide assessments
 3669  pursuant to s. 1008.22. Students with disabilities for whom
 3670  standardized testing is not appropriate are exempt from this
 3671  requirement. A participating private school must report a
 3672  student’s scores to the parent. A participating private school
 3673  must annually report by August 15 the scores of all
 3674  participating students to a state university described in
 3675  paragraph (9)(f).
 3676         2. Administer the statewide assessments pursuant to s.
 3677  1008.22 if a private school chooses to offer the statewide
 3678  assessments. A participating private school may choose to offer
 3679  and administer the statewide assessments to all students who
 3680  attend the private school in grades 3 through 10 and must submit
 3681  a request in writing to the Department of Education by March 1
 3682  of each year in order to administer the statewide assessments in
 3683  the subsequent school year.
 3684  
 3685  If a private school fails to meet the requirements of this
 3686  subsection or s. 1002.421, the commissioner may determine that
 3687  the private school is ineligible to participate in the
 3688  scholarship program.
 3689         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of
 3690  Education shall:
 3691         (a) Annually submit to the department and division, by
 3692  March 15, a list of eligible nonprofit scholarship-funding
 3693  organizations that meet the requirements of paragraph (2)(f).
 3694         (b) Annually verify the eligibility of nonprofit
 3695  scholarship-funding organizations that meet the requirements of
 3696  paragraph (2)(f).
 3697         (c) Annually verify the eligibility of expenditures as
 3698  provided in paragraph (6)(d) using the audit required by
 3699  paragraph (6)(m) and s. 11.45(2)(l).
 3700         (d) Cross-check the list of participating scholarship
 3701  students with the public school enrollment lists to avoid
 3702  duplication.
 3703         (e) Maintain a list of nationally norm-referenced tests
 3704  identified for purposes of satisfying the testing requirement in
 3705  subparagraph (8)(b)1. The tests must meet industry standards of
 3706  quality in accordance with State Board of Education rule.
 3707         (f) Issue a project grant award to a state university, to
 3708  which participating private schools must report the scores of
 3709  participating students on the nationally norm-referenced tests
 3710  or the statewide assessments administered by the private school
 3711  in grades 3 through 10. The project term is 2 years, and the
 3712  amount of the project is up to $250,000 per year. The project
 3713  grant award must be reissued in 2-year intervals in accordance
 3714  with this paragraph.
 3715         1. The state university must annually report to the
 3716  Department of Education on the student performance of
 3717  participating students:
 3718         a. On a statewide basis. The report shall also include, to
 3719  the extent possible, a comparison of scholarship students’
 3720  performance to the statewide student performance of public
 3721  school students with socioeconomic backgrounds similar to those
 3722  of students participating in the scholarship program. To
 3723  minimize costs and reduce time required for the state
 3724  university’s analysis and evaluation, the Department of
 3725  Education shall coordinate with the state university to provide
 3726  data to the state university in order to conduct analyses of
 3727  matched students from public school assessment data and
 3728  calculate control group student performance using an agreed-upon
 3729  methodology with the state university; and
 3730         b. On an individual school basis. The annual report must
 3731  include student performance for each participating private
 3732  school in which at least 51 percent of the total enrolled
 3733  students in the private school participated in the Florida Tax
 3734  Credit Scholarship Program in the prior school year. The report
 3735  shall be according to each participating private school, and for
 3736  participating students, in which there are at least 30
 3737  participating students who have scores for tests administered.
 3738  If the state university determines that the 30-participating
 3739  student cell size may be reduced without disclosing personally
 3740  identifiable information, as described in 34 C.F.R. s. 99.12, of
 3741  a participating student, the state university may reduce the
 3742  participating-student cell size, but the cell size must not be
 3743  reduced to less than 10 participating students. The department
 3744  shall provide each private school’s prior school year’s student
 3745  enrollment information to the state university no later than
 3746  June 15 of each year, or as requested by the state university.
 3747         2. The sharing and reporting of student performance data
 3748  under this paragraph must be in accordance with requirements of
 3749  ss. 1002.22 and 1002.221 and 20 U.S.C. s. 1232g, the Family
 3750  Educational Rights and Privacy Act, and the applicable rules and
 3751  regulations issued pursuant thereto, and shall be for the sole
 3752  purpose of creating the annual report required by subparagraph
 3753  1. All parties must preserve the confidentiality of such
 3754  information as required by law. The annual report must not
 3755  disaggregate data to a level that will identify individual
 3756  participating schools, except as required under sub-subparagraph
 3757  1.b., or disclose the academic level of individual students.
 3758         3. The annual report required by subparagraph 1. shall be
 3759  published by the Department of Education on its website.
 3760         (g) Notify an eligible nonprofit scholarship-funding
 3761  organization of any of the organization’s identified students
 3762  who are receiving educational scholarships pursuant to chapter
 3763  1002.
 3764         (h) Notify an eligible nonprofit scholarship-funding
 3765  organization of any of the organization’s identified students
 3766  who are receiving tax credit scholarships from other eligible
 3767  nonprofit scholarship-funding organizations.
 3768         (i) Require quarterly reports by an eligible nonprofit
 3769  scholarship-funding organization regarding the number of
 3770  students participating in the scholarship program, the private
 3771  schools at which the students are enrolled, and other
 3772  information deemed necessary by the Department of Education.
 3773         (j) Provide a process to match the direct certification
 3774  list with the scholarship application data submitted by any
 3775  nonprofit scholarship-funding organization eligible to receive
 3776  the 3-percent administrative allowance under paragraph (6)(j).
 3777         (10) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—
 3778         (a) Upon the request of any eligible nonprofit scholarship
 3779  funding organization, a school district shall inform all
 3780  households within the district receiving free or reduced-priced
 3781  meals under the National School Lunch Act of their eligibility
 3782  to apply for a tax credit scholarship. The form of such notice
 3783  shall be provided by the eligible nonprofit scholarship-funding
 3784  organization, and the district shall include the provided form,
 3785  if requested by the organization, in any normal correspondence
 3786  with eligible households. If an eligible nonprofit scholarship
 3787  funding organization requests a special communication to be
 3788  issued to households within the district receiving free or
 3789  reduced-price meals under the National School Lunch Act, the
 3790  organization shall reimburse the district for the cost of
 3791  postage. Such notice is limited to once a year.
 3792         (b) Upon the request of the Department of Education, a
 3793  school district shall coordinate with the department to provide
 3794  to a participating private school the statewide assessments
 3795  administered under s. 1008.22 and any related materials for
 3796  administering the assessments. A school district is responsible
 3797  for implementing test administrations at a participating private
 3798  school, including the:
 3799         1. Provision of training for private school staff on test
 3800  security and assessment administration procedures;
 3801         2. Distribution of testing materials to a private school;
 3802         3. Retrieval of testing materials from a private school;
 3803         4. Provision of the required format for a private school to
 3804  submit information to the district for test administration and
 3805  enrollment purposes; and
 3806         5. Provision of any required assistance, monitoring, or
 3807  investigation at a private school.
 3808         (11) SCHOLARSHIP AMOUNT AND PAYMENT.—
 3809         (a) The scholarship amount provided to any student for any
 3810  single school year by an eligible nonprofit scholarship-funding
 3811  organization from eligible contributions shall be for total
 3812  costs authorized under paragraph (6)(d), not to exceed annual
 3813  limits, which shall be determined as follows:
 3814         1. For a student who received a scholarship in the 2018
 3815  2019 school year, who remains eligible, and who is enrolled in
 3816  an eligible private school, the amount shall be the greater
 3817  amount calculated pursuant to subparagraph 2. or a percentage of
 3818  the unweighted FTE funding amount for the 2018-2019 state fiscal
 3819  year and thereafter as follows:
 3820         a. Eighty-eight percent for a student enrolled in
 3821  kindergarten through grade 5.
 3822         b. Ninety-two percent for a student enrolled in grade 6
 3823  through grade 8.
 3824         c. Ninety-six percent for a student enrolled in grade 9
 3825  through grade 12.
 3826         2. For students initially eligible in the 2019-2020 school
 3827  year or thereafter, the calculated amount for a student to
 3828  attend an eligible private school shall be based upon the grade
 3829  level and school district in which the student resides as 95
 3830  percent of the funds per unweighted full-time equivalent in the
 3831  Florida Education Finance Program for a student in the basic
 3832  program established pursuant to s. 1011.62(1)(c)1., plus a per
 3833  full-time equivalent share of funds for all categorical
 3834  programs, except for the Exceptional Student Education
 3835  Guaranteed Allocation.
 3836         3. The scholarship amount awarded to a student enrolled in
 3837  a Florida public school in which a student is enrolled and that
 3838  is different from the school to which the student was assigned
 3839  or in a lab school as defined in s. 1002.32, is limited to $750.
 3840         (b) Payment of the scholarship by the eligible nonprofit
 3841  scholarship-funding organization shall be by individual warrant
 3842  made payable to the student’s parent or by funds transfer,
 3843  including, but not limited to, debit cards, electronic payment
 3844  cards, or any other means of payment that the department deems
 3845  to be commercially viable or cost-effective. If the payment is
 3846  made by warrant, the warrant must be delivered by the eligible
 3847  nonprofit scholarship-funding organization to the private school
 3848  of the parent’s choice, and the parent shall restrictively
 3849  endorse the warrant to the private school. An eligible nonprofit
 3850  scholarship-funding organization shall ensure that the parent to
 3851  whom the warrant is made restrictively endorsed the warrant to
 3852  the private school for deposit into the account of the private
 3853  school or that the parent has approved a funds transfer before
 3854  any scholarship funds are deposited.
 3855         (c) An eligible nonprofit scholarship-funding organization
 3856  shall obtain verification from the private school of a student’s
 3857  continued attendance at the school for each period covered by a
 3858  scholarship payment.
 3859         (d) Payment of the scholarship shall be made by the
 3860  eligible nonprofit scholarship-funding organization no less
 3861  frequently than on a quarterly basis.
 3862         (12) ADMINISTRATION; RULES.—
 3863         (a) The department, the division, and the Department of
 3864  Education shall develop a cooperative agreement to assist in the
 3865  administration of this section.
 3866         (b) The department shall adopt rules necessary to
 3867  administer this section and ss. 211.0251, 212.1831, 220.1875,
 3868  561.1211, and 624.51055, including rules establishing
 3869  application forms, procedures governing the approval of tax
 3870  credits and carryforward tax credits under subsection (5), and
 3871  procedures to be followed by taxpayers when claiming approved
 3872  tax credits on their returns.
 3873         (c) The division shall adopt rules necessary to administer
 3874  its responsibilities under this section and s. 561.1211.
 3875         (d) The State Board of Education shall adopt rules to
 3876  administer the responsibilities of the Department of Education
 3877  and the Commissioner of Education under this section.
 3878         (4)(13) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.—All eligible
 3879  contributions received by the department or the division or
 3880  transferred by an eligible nonprofit scholarship-funding
 3881  organization shall be deposited into the Florida K-12 Education
 3882  Tax Credit Program Trust Fund as created in s. 1010.88 in a
 3883  manner consistent with s. 17.57(2). By August 1, 2021, an
 3884  eligible nonprofit scholarship-funding organization must
 3885  transfer any funds, including eligible contributions, which were
 3886  received pursuant to the former Florida Tax Credit Scholarship
 3887  Program or the former Hope Scholarship Program to the department
 3888  for deposit into the Florida K-12 Education Tax Credit Program
 3889  Trust Fund.
 3890         (5) RULES.—
 3891         (a) The department shall adopt rules necessary to
 3892  administer this section and ss. 211.0251, 212.1831, 220.1875,
 3893  and 624.51055.
 3894         (b) The division may adopt rules necessary to administer
 3895  this section and s. 561.1211.
 3896         (14) PRESERVATION OF CREDIT.—If any provision or portion of
 3897  this section, s. 211.0251, s. 212.1831, s. 220.1875, s.
 3898  561.1211, or s. 624.51055 or the application thereof to any
 3899  person or circumstance is held unconstitutional by any court or
 3900  is otherwise declared invalid, the unconstitutionality or
 3901  invalidity shall not affect any credit earned under s. 211.0251,
 3902  s. 212.1831, s. 220.1875, s. 561.1211, or s. 624.51055 by any
 3903  taxpayer with respect to any contribution paid to an eligible
 3904  nonprofit scholarship-funding organization before the date of a
 3905  determination of unconstitutionality or invalidity. Such credit
 3906  shall be allowed at such time and in such a manner as if a
 3907  determination of unconstitutionality or invalidity had not been
 3908  made, provided that nothing in this subsection by itself or in
 3909  combination with any other provision of law shall result in the
 3910  allowance of any credit to any taxpayer in excess of one dollar
 3911  of credit for each dollar paid to an eligible nonprofit
 3912  scholarship-funding organization.
 3913         (15) NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS;
 3914  APPLICATION.—In order to participate in the scholarship program
 3915  created under this section, a charitable organization that seeks
 3916  to be a nonprofit scholarship-funding organization must submit
 3917  an application for initial approval or renewal to the Office of
 3918  Independent Education and Parental Choice no later than
 3919  September 1 of each year before the school year for which the
 3920  organization intends to offer scholarships.
 3921         (a) An application for initial approval must include:
 3922         1. A copy of the organization’s incorporation documents and
 3923  registration with the Division of Corporations of the Department
 3924  of State.
 3925         2. A copy of the organization’s Internal Revenue Service
 3926  determination letter as a s. 501(c)(3) not-for-profit
 3927  organization.
 3928         3. A description of the organization’s financial plan that
 3929  demonstrates sufficient funds to operate throughout the school
 3930  year.
 3931         4. A description of the geographic region that the
 3932  organization intends to serve and an analysis of the demand and
 3933  unmet need for eligible students in that area.
 3934         5. The organization’s organizational chart.
 3935         6. A description of the criteria and methodology that the
 3936  organization will use to evaluate scholarship eligibility.
 3937         7. A description of the application process, including
 3938  deadlines and any associated fees.
 3939         8. A description of the deadlines for attendance
 3940  verification and scholarship payments.
 3941         9. A copy of the organization’s policies on conflict of
 3942  interest and whistleblowers.
 3943         10. A copy of a surety bond or letter of credit to secure
 3944  the faithful performance of the obligations of the eligible
 3945  nonprofit scholarship-funding organization in accordance with
 3946  this section in an amount equal to 25 percent of the scholarship
 3947  funds anticipated for each school year or $100,000, whichever is
 3948  greater. The surety bond or letter of credit must specify that
 3949  any claim against the bond or letter of credit may be made only
 3950  by an eligible nonprofit scholarship-funding organization to
 3951  provide scholarships to and on behalf of students who would have
 3952  had scholarships funded if it were not for the diversion of
 3953  funds giving rise to the claim against the bond or letter of
 3954  credit.
 3955         (b) In addition to the information required by
 3956  subparagraphs (a)1.-9., an application for renewal must include:
 3957         1. A surety bond or letter of credit to secure the faithful
 3958  performance of the obligations of the eligible nonprofit
 3959  scholarship-funding organization in accordance with this section
 3960  equal to the amount of undisbursed donations held by the
 3961  organization based on the annual report submitted pursuant to
 3962  paragraph (6)(m). The amount of the surety bond or letter of
 3963  credit must be at least $100,000, but not more than $25 million.
 3964  The surety bond or letter of credit must specify that any claim
 3965  against the bond or letter of credit may be made only by an
 3966  eligible nonprofit scholarship-funding organization to provide
 3967  scholarships to and on behalf of students who would have had
 3968  scholarships funded if it were not for the diversion of funds
 3969  giving rise to the claim against the bond or letter of credit.
 3970         2. The organization’s completed Internal Revenue Service
 3971  Form 990 submitted no later than November 30 of the year before
 3972  the school year that the organization intends to offer the
 3973  scholarships, notwithstanding the September 1 application
 3974  deadline.
 3975         3. A copy of the statutorily required audit to the
 3976  Department of Education and Auditor General.
 3977         4. An annual report that includes:
 3978         a. The number of students who completed applications, by
 3979  county and by grade.
 3980         b. The number of students who were approved for
 3981  scholarships, by county and by grade.
 3982         c. The number of students who received funding for
 3983  scholarships within each funding category, by county and by
 3984  grade.
 3985         d. The amount of funds received, the amount of funds
 3986  distributed in scholarships, and an accounting of remaining
 3987  funds and the obligation of those funds.
 3988         e. A detailed accounting of how the organization spent the
 3989  administrative funds allowable under paragraph (6)(j).
 3990         (c) In consultation with the Department of Revenue and the
 3991  Chief Financial Officer, the Office of Independent Education and
 3992  Parental Choice shall review the application. The Department of
 3993  Education shall notify the organization in writing of any
 3994  deficiencies within 30 days after receipt of the application and
 3995  allow the organization 30 days to correct any deficiencies.
 3996         (d) Within 30 days after receipt of the finalized
 3997  application by the Office of Independent Education and Parental
 3998  Choice, the Commissioner of Education shall recommend approval
 3999  or disapproval of the application to the State Board of
 4000  Education. The State Board of Education shall consider the
 4001  application and recommendation at the next scheduled meeting,
 4002  adhering to appropriate meeting notice requirements. If the
 4003  State Board of Education disapproves the organization’s
 4004  application, it shall provide the organization with a written
 4005  explanation of that determination. The State Board of
 4006  Education’s action is not subject to chapter 120.
 4007         (e) If the State Board of Education disapproves the renewal
 4008  of a nonprofit scholarship-funding organization, the
 4009  organization must notify the affected eligible students and
 4010  parents of the decision within 15 days after disapproval. An
 4011  eligible student affected by the disapproval of an
 4012  organization’s participation remains eligible under this section
 4013  until the end of the school year in which the organization was
 4014  disapproved. The student must apply and be accepted by another
 4015  eligible nonprofit scholarship-funding organization for the
 4016  upcoming school year. The student shall be given priority in
 4017  accordance with paragraph (6)(f).
 4018         (f) All remaining funds held by a nonprofit scholarship
 4019  funding organization that is disapproved for participation must
 4020  be transferred to other eligible nonprofit scholarship-funding
 4021  organizations to provide scholarships for eligible students. All
 4022  transferred funds must be deposited by each eligible nonprofit
 4023  scholarship-funding organization receiving such funds into its
 4024  scholarship account. All transferred amounts received by any
 4025  eligible nonprofit scholarship-funding organization must be
 4026  separately disclosed in the annual financial audit required
 4027  under subsection (6).
 4028         (g) A nonprofit scholarship-funding organization is a
 4029  renewing organization if it maintains continuous approval and
 4030  participation in the program. An organization that chooses not
 4031  to participate for 1 year or more or is disapproved to
 4032  participate for 1 year or more must submit an application for
 4033  initial approval in order to participate in the program again.
 4034         (h) The State Board of Education shall adopt rules
 4035  providing guidelines for receiving, reviewing, and approving
 4036  applications for new and renewing nonprofit scholarship-funding
 4037  organizations. The rules must include a process for compiling
 4038  input and recommendations from the Chief Financial Officer, the
 4039  Department of Revenue, and the Department of Education. The
 4040  rules must also require that the nonprofit scholarship-funding
 4041  organization make a brief presentation to assist the State Board
 4042  of Education in its decision.
 4043         (i) A state university; or an independent college or
 4044  university which is eligible to participate in the William L.
 4045  Boyd, IV, Effective Access to Student Education Grant Program,
 4046  located and chartered in this state, is not for profit, and is
 4047  accredited by the Commission on Colleges of the Southern
 4048  Association of Colleges and Schools, is exempt from the initial
 4049  or renewal application process, but must file a registration
 4050  notice with the Department of Education to be an eligible
 4051  nonprofit scholarship-funding organization. The State Board of
 4052  Education shall adopt rules that identify the procedure for
 4053  filing the registration notice with the department. The rules
 4054  must identify appropriate reporting requirements for fiscal,
 4055  programmatic, and performance accountability purposes consistent
 4056  with this section, but shall not exceed the requirements for
 4057  eligible nonprofit scholarship-funding organizations for
 4058  charitable organizations.
 4059         Section 21. Section 1002.40, Florida Statutes, is repealed.
 4060         Section 22. Subsection (4) of section 1002.411, Florida
 4061  Statutes, is amended to read:
 4062         1002.411 Reading scholarship accounts.—
 4063         (4) ADMINISTRATION.—An eligible nonprofit scholarship
 4064  funding organization participating in a scholarship program
 4065  under this chapter the Florida Tax Credit Scholarship Program
 4066  established by s. 1002.395 may establish reading scholarship
 4067  accounts for eligible students in accordance with the
 4068  requirements of eligible nonprofit scholarship-funding
 4069  organizations under this chapter.
 4070         Section 23. Paragraphs (i) and (q) of subsection (1) of
 4071  section 1002.421, Florida Statutes, are amended, and paragraph
 4072  (r) is added to that subsection, to read:
 4073         1002.421 State school choice scholarship program
 4074  accountability and oversight.—
 4075         (1) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—A private
 4076  school participating in an educational scholarship program
 4077  established pursuant to this chapter must be a private school as
 4078  defined in s. 1002.01(2) in this state, be registered, and be in
 4079  compliance with all requirements of this section in addition to
 4080  private school requirements outlined in s. 1002.42, specific
 4081  requirements identified within respective scholarship program
 4082  laws, and other provisions of Florida law that apply to private
 4083  schools, and must:
 4084         (i)1. Maintain a physical location in the state at which
 4085  each student has regular and direct contact with teachers; or
 4086         2. If the private school is a private virtual school, have
 4087  at least one administrative office located in this state at
 4088  which all of its administrative staff are Florida residents.
 4089         (q) Provide a report from an independent certified public
 4090  accountant who performs the agreed-upon procedures developed
 4091  pursuant to s. 1002.394(11)(g) s. 1002.395(6)(o) if the private
 4092  school receives more than $250,000 in funds from scholarships
 4093  awarded under this chapter in a state fiscal year. A private
 4094  school subject to this subsection must annually submit the
 4095  report by September 15 to the scholarship-funding organization
 4096  that awarded the majority of the school’s scholarship funds.
 4097  However, for the 2020-2021 school year only, a school that
 4098  receives more than $250,000 in scholarship funds only through
 4099  the John M. McKay Scholarship for Students with Disabilities
 4100  Program pursuant to s. 1002.39 must submit the annual report by
 4101  September 15 to the department. The agreed-upon procedures must
 4102  be conducted in accordance with attestation standards
 4103  established by the American Institute of Certified Public
 4104  Accountants.
 4105         (r) Provide to parents and students enrolled in a private
 4106  virtual school specific information posted and accessible online
 4107  which includes, but is not limited to, all of the following
 4108  teacher-parent and teacher-student contact information for each
 4109  course:
 4110         1. How to contact the instructor, technical support staff,
 4111  and the administration office by phone, e-mail, or online
 4112  messaging tools.
 4113         2. Requirements for regular contact with the instructor for
 4114  the course and clear expectations for meeting such requirements.
 4115         3. Requirements that the instructor of each course must, at
 4116  a minimum, conduct one contact with the parent and student each
 4117  month.
 4118  
 4119  The department shall suspend the payment of funds to a private
 4120  school that knowingly fails to comply with this subsection, and
 4121  shall prohibit the school from enrolling new scholarship
 4122  students, for 1 fiscal year and until the school complies. If a
 4123  private school fails to meet the requirements of this subsection
 4124  or has consecutive years of material exceptions listed in the
 4125  report required under paragraph (q), the commissioner may
 4126  determine that the private school is ineligible to participate
 4127  in a scholarship program.
 4128         Section 24. Paragraph (aa) of subsection (4) of section
 4129  1009.971, Florida Statutes, is amended to read:
 4130         1009.971 Florida Prepaid College Board.—
 4131         (4) FLORIDA PREPAID COLLEGE BOARD; POWERS AND DUTIES.—The
 4132  board shall have the powers and duties necessary or proper to
 4133  carry out the provisions of ss. 1009.97-1009.988, including, but
 4134  not limited to, the power and duty to:
 4135         (aa) Adopt rules relating to the purchase and use of a
 4136  prepaid college plan authorized under s. 1009.98 or a college
 4137  savings plan authorized under s. 1009.981 for the McKay-Gardiner
 4138  Gardiner Scholarship Program pursuant to s. 1002.381 or the
 4139  Family Empowerment Scholarship Program pursuant to s. 1002.394
 4140  s. 1002.385, which may include, but need not be limited to:
 4141         1. The use of such funds for postsecondary education
 4142  programs for students with disabilities;
 4143         2. Effective procedures that allow program funds to be used
 4144  in conjunction with other funds used by a parent in the purchase
 4145  of a prepaid college plan or a college savings plan;
 4146         3. The tracking and accounting of program funds separately
 4147  from other funds contributed to a prepaid college plan or a
 4148  college savings plan;
 4149         4. The reversion of program funds, including, but not
 4150  limited to, earnings from contributions to the Florida College
 4151  Savings Plan;
 4152         5. The use of program funds only after private payments
 4153  have been used for prepaid college plan or college savings plan
 4154  expenditures;
 4155         6. Contracting with each eligible nonprofit scholarship
 4156  funding organization to establish mechanisms to implement ss.
 4157  1002.381 and 1002.394 s. 1002.385, including, but not limited
 4158  to, identifying the source of funds being deposited in the
 4159  plans; and
 4160         7. The development of a written agreement that defines the
 4161  owner and beneficiary of an account and outlines
 4162  responsibilities for the use of the advance payment contract
 4163  funds or savings program funds.
 4164         Section 25. Subsection (11) of section 1009.98, Florida
 4165  Statutes, is amended to read:
 4166         1009.98 Stanley G. Tate Florida Prepaid College Program.—
 4167         (11) IMPLEMENTATION PROCEDURES.—
 4168         (a) A prepaid college plan may be purchased, accounted for,
 4169  used, and terminated as provided in ss. 1002.381 and 1002.394 s.
 4170  1002.385.
 4171         (b) A qualified beneficiary may apply the benefits of an
 4172  advance payment contract toward the program fees of a program
 4173  designed for students with disabilities conducted by a state
 4174  postsecondary institution. A transfer authorized under this
 4175  subsection may not exceed the redemption value of the advance
 4176  payment contract at a state postsecondary institution or the
 4177  number of semester credit hours contracted on behalf of a
 4178  qualified beneficiary. A qualified beneficiary may not be
 4179  changed while a prepaid college plan contains funds contributed
 4180  under ss. 1002.381 and 1002.394 s. 1002.385.
 4181         Section 26. Subsection (10) of section 1009.981, Florida
 4182  Statutes, is amended to read:
 4183         1009.981 Florida College Savings Program.—
 4184         (10) IMPLEMENTATION PROCEDURES.—
 4185         (a) A college savings plan may be purchased, accounted for,
 4186  used, and terminated as provided in ss. 1002.381 and 1002.394 s.
 4187  1002.385.
 4188         (b) A designated beneficiary may apply the benefits of a
 4189  participation agreement toward the program fees of a program
 4190  designed for students with disabilities conducted by a state
 4191  postsecondary institution. A designated beneficiary may not be
 4192  changed while a college savings plan contains funds contributed
 4193  under ss. 1002.381 and 1002.394 s. 1002.385.
 4194         Section 27. Subsection (4) of section 1011.61, Florida
 4195  Statutes, is amended to read:
 4196         1011.61 Definitions.—Notwithstanding the provisions of s.
 4197  1000.21, the following terms are defined as follows for the
 4198  purposes of the Florida Education Finance Program:
 4199         (4) The maximum value for funding a student in kindergarten
 4200  through grade 12 or in a prekindergarten program for exceptional
 4201  children as provided in s. 1003.21(1)(e) shall be the sum of the
 4202  calculations in paragraphs (a), (b), and (c) as calculated by
 4203  the department.
 4204         (a) The sum of the student’s full-time equivalent student
 4205  membership value for the school year or the equivalent derived
 4206  from paragraphs (1)(a) and (b), subparagraph (1)(c)1., sub
 4207  subparagraphs (1)(c)2.b. and c., subparagraph (1)(c)3., and
 4208  subsection (2). If the sum is greater than 1.0, the full-time
 4209  equivalent student membership value for each program or course
 4210  shall be reduced by an equal proportion so that the student’s
 4211  total full-time equivalent student membership value is equal to
 4212  1.0.
 4213         (b) If the result in paragraph (a) is less than 1.0 full
 4214  time equivalent student and the student has full-time equivalent
 4215  student enrollment pursuant to sub-sub-subparagraph
 4216  (1)(c)1.b.(VIII), calculate an amount that is the lesser of the
 4217  value in sub-sub-subparagraph (1)(c)1.b.(VIII) or the value of
 4218  1.0 less the value in paragraph (a).
 4219         (c) The full-time equivalent student enrollment value in
 4220  sub-subparagraph (1)(c)2.a.
 4221  
 4222  A scholarship award provided to a student enrolled in the John
 4223  M. McKay Scholarships for Students with Disabilities Program
 4224  pursuant to s. 1002.39 is not subject to the maximum value for
 4225  funding a student under this subsection.
 4226         Section 28. Paragraph (f) of subsection (18) of section
 4227  1011.62, Florida Statutes, is amended to read:
 4228         1011.62 Funds for operation of schools.—If the annual
 4229  allocation from the Florida Education Finance Program to each
 4230  district for operation of schools is not determined in the
 4231  annual appropriations act or the substantive bill implementing
 4232  the annual appropriations act, it shall be determined as
 4233  follows:
 4234         (18) TEACHER SALARY INCREASE ALLOCATION.—The Legislature
 4235  may annually provide in the Florida Education Finance Program a
 4236  teacher salary increase allocation to assist school districts in
 4237  their recruitment and retention of classroom teachers and other
 4238  instructional personnel. The amount of the allocation shall be
 4239  specified in the General Appropriations Act.
 4240         (f) Notwithstanding any other provision of law, funds
 4241  allocated under this subsection shall not be included in the
 4242  calculated amount for any scholarship awarded under chapter
 4243  1002.
 4244         Section 29. Section 1011.687, Florida Statutes, is created
 4245  to read:
 4246         1011.687 K-12 Education Scholarship Program Allocation.—The
 4247  K-12 Education Scholarship Program Allocation is established to
 4248  provide funds to implement the McKay-Gardiner Scholarship
 4249  Program provided in s. 1002.381 and the Family Empowerment
 4250  Scholarship Program provided in s. 1002.394. A student FTE
 4251  scholarship amount shall be calculated as provided in ss.
 4252  1002.381(15) and 1002.394(12)(b), based on funds calculated for
 4253  a similarly situated public school student full-time equivalent
 4254  in the Florida Education Finance Program. For purposes of this
 4255  allocation, one student FTE is equivalent to four quarterly
 4256  scholarship payments. A student who receives funding for the
 4257  program for less than four quarters shall be a fraction of an
 4258  FTE. Funds for the scholarship allocation shall be provided for
 4259  student FTE in each county in the amount prescribed in the
 4260  General Appropriations Act. The calculated student scholarship
 4261  amounts provided may not be revised during the fiscal year.
 4262         Section 30. (1) Any allocation of tax credit made by the
 4263  Department of Revenue in response to a taxpayer request for
 4264  allocation of credit received before July 1, 2021, under former
 4265  s. 212.099, Florida Statutes 2020, shall remain in effect,
 4266  subject to the carryforward, conveyance, assignment, transfer,
 4267  and rescindment provisions of former s. 212.099(5), Florida
 4268  Statutes 2020. However, contributions made on or after July 1,
 4269  2021, shall be paid by electronic means to the Department of
 4270  Revenue instead of to a nonprofit scholarship-funding
 4271  organization.
 4272         (2)(a) Any allocation of tax credit made by the Department
 4273  of Revenue in response to a taxpayer request for allocation of
 4274  credit received before July 1, 2021, for credits under ss.
 4275  211.0251, 212.1831, 220.1875, and 624.51055, Florida Statutes,
 4276  shall remain in effect under former s. 1002.395, Florida
 4277  Statutes 2020. However, contributions made on or after July 1,
 4278  2021, shall be paid by electronic means to the Department of
 4279  Revenue instead of to an eligible nonprofit scholarship-funding
 4280  organization.
 4281         (b) All credits under ss. 211.0251, 212.1831, 220.1875, and
 4282  624.51055, Florida Statutes, earned by a taxpayer under former
 4283  s. 1002.395, Florida Statutes 2020, including those under
 4284  paragraph (a), continue in effect, subject to the carryforward,
 4285  conveyance, assignment, transfer, and rescindment, corporate
 4286  income tax estimated payment, and insurance premium tax
 4287  installment payment provisions of former s. 1002.395, Florida
 4288  Statutes 2020.
 4289         (3) Eligible contributions received by a dealer, designated
 4290  agent, or private tag agent under former s. 212.1832, Florida
 4291  Statutes 2020, before July 1, 2021, shall be remitted to the
 4292  designated eligible nonprofit scholarship-funding organizations
 4293  by July 21, 2021.
 4294         Section 31. (1) Notwithstanding s. 287.057, Florida
 4295  Statutes, the Department of Revenue is authorized to contract
 4296  with a qualified vendor to provide services necessary to
 4297  administer this act, without using a competitive solicitation
 4298  process.
 4299         (2) The authority granted to the Department of Revenue by
 4300  this section applies solely to the implementation and
 4301  administration of this act and shall not be used for any other
 4302  purpose. Such authority ends, and any contract entered into
 4303  pursuant to this section still in force becomes void, upon the
 4304  expiration of this section.
 4305         (3) This section shall take effect upon this act becoming a
 4306  law and expires July 1, 2022.
 4307         Section 32. For the 2021-2022 fiscal year, the sum of
 4308  $264,687 in nonrecurring funds is appropriated from the General
 4309  Revenue Fund to the Department of Revenue for the purpose of
 4310  implementing this act. Funds remaining unexpended from this
 4311  appropriation as of July 1, 2022, shall revert to the General
 4312  Revenue Fund.
 4313         Section 33. (1) The Department of Revenue is authorized,
 4314  and all conditions are deemed met, to adopt emergency rules
 4315  pursuant to s. 120.54(4), Florida Statutes, for the purpose of
 4316  administering this act.
 4317         (2) Notwithstanding any other law, emergency rules adopted
 4318  pursuant to this section are effective for 6 months after
 4319  adoption and may be renewed during the pendency of procedures to
 4320  adopt permanent rules addressing the subject of the emergency
 4321  rules.
 4322         (3) This section shall take effect upon this act becoming a
 4323  law and expires July 1, 2023.
 4324         Section 34. Except as otherwise expressly provided in this
 4325  act and except for this section, which shall take effect upon
 4326  this act becoming a law, this act shall take effect July 1,
 4327  2021.