Florida Senate - 2019                                    SB 1740
       By Senator Farmer
       34-00657-19                                           20191740__
    1                        A bill to be entitled                      
    2         An act relating to scholarship programs; repealing s.
    3         1002.395, F.S., relating to the Florida Tax Credit
    4         Scholarship Program; repealing s. 1002.40, F.S.,
    5         relating to the Hope Scholarship Program; repealing s.
    6         1002.411, F.S., relating to reading scholarship
    7         accounts; repealing s. 212.099, F.S., relating to the
    8         Florida Sales Tax Credit Scholarship Program;
    9         repealing ss. 211.0251, 212.1831, 220.1875, 561.1211,
   10         and 624.51055, F.S., relating to credit for
   11         contributions to eligible nonprofit scholarship
   12         funding organizations; amending ss. 11.45, 213.053,
   13         220.02, 220.13, 220.186, 1002.20, 1002.23, 1002.385,
   14         1002.39, and 1002.421, F.S.; conforming provisions to
   15         changes made by the act; providing an effective date.
   17  Be It Enacted by the Legislature of the State of Florida:
   19         Section 1. Section 1002.395, Florida Statutes, is repealed.
   20         Section 2. Section 1002.40, Florida Statutes, is repealed.
   21         Section 3. Section 1002.411, Florida Statutes, is repealed.
   22         Section 4. Section 212.099, Florida Statutes, is repealed.
   23         Section 5. Section 211.0251, Florida Statutes, is repealed.
   24         Section 6. Section 212.1831, Florida Statutes, is repealed.
   25         Section 7. Section 220.1875, Florida Statutes, is repealed.
   26         Section 8. Section 561.1211, Florida Statutes, is repealed.
   27         Section 9. Section 624.51055, Florida Statutes, is
   28  repealed.
   29         Section 10. Paragraph (k) of subsection (2) and subsection
   30  (8) of section 11.45, Florida Statutes, are amended to read:
   31         11.45 Definitions; duties; authorities; reports; rules.—
   32         (2) DUTIES.—The Auditor General shall:
   33         (k)Annually conduct operational audits of the accounts and
   34  records of eligible nonprofit scholarship-funding organizations
   35  receiving eligible contributions under s. 1002.395, including
   36  any contracts for services with related entities, to determine
   37  compliance with the provisions of that section. Such audits
   38  shall include, but not be limited to, a determination of the
   39  eligible nonprofit scholarship-funding organization’s compliance
   40  with s. 1002.395(6)(j). The Auditor General shall provide its
   41  report on the results of the audits to the Governor, the
   42  President of the Senate, the Speaker of the House of
   43  Representatives, the Chief Financial Officer, and the
   44  Legislative Auditing Committee, within 30 days of completion of
   45  the audit.
   47  The Auditor General shall perform his or her duties
   48  independently but under the general policies established by the
   49  Legislative Auditing Committee. This subsection does not limit
   50  the Auditor General’s discretionary authority to conduct other
   51  audits or engagements of governmental entities as authorized in
   52  subsection (3).
   53         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
   54  consultation with the Board of Accountancy, shall adopt rules
   55  for the form and conduct of all financial audits performed by
   56  independent certified public accountants pursuant to ss.
   57  215.981, 218.39, 1001.453, 1002.395, 1004.28, and 1004.70. The
   58  rules for audits of local governmental entities, charter
   59  schools, charter technical career centers, and district school
   60  boards must include, but are not limited to, requirements for
   61  the reporting of information necessary to carry out the purposes
   62  of the Local Governmental Entity, Charter School, Charter
   63  Technical Career Center, and District School Board Financial
   64  Emergencies Act as stated in s. 218.501.
   65         Section 11. Paragraph (s) of subsection (8) of section
   66  213.053, Florida Statutes, is amended to read:
   67         213.053 Confidentiality and information sharing.—
   68         (8) Notwithstanding any other provision of this section,
   69  the department may provide:
   70         (s)Information relative to ss. 211.0251, 212.1831,
   71  220.1875, 561.1211, 624.51055, and 1002.395 to the Department of
   72  Education and the Division of Alcoholic Beverages and Tobacco in
   73  the conduct of official business.
   75  Disclosure of information under this subsection shall be
   76  pursuant to a written agreement between the executive director
   77  and the agency. Such agencies, governmental or nongovernmental,
   78  shall be bound by the same requirements of confidentiality as
   79  the Department of Revenue. Breach of confidentiality is a
   80  misdemeanor of the first degree, punishable as provided by s.
   81  775.082 or s. 775.083.
   82         Section 12. Subsection (8) of section 220.02, Florida
   83  Statutes, is amended to read:
   84         220.02 Legislative intent.—
   85         (8) It is the intent of the Legislature that credits
   86  against either the corporate income tax or the franchise tax be
   87  applied in the following order: those enumerated in s. 631.828,
   88  those enumerated in s. 220.191, those enumerated in s. 220.181,
   89  those enumerated in s. 220.183, those enumerated in s. 220.182,
   90  those enumerated in s. 220.1895, those enumerated in s. 220.195,
   91  those enumerated in s. 220.184, those enumerated in s. 220.186,
   92  those enumerated in s. 220.1845, those enumerated in s. 220.19,
   93  those enumerated in s. 220.185, those enumerated in s. 220.1875,
   94  those enumerated in s. 220.192, those enumerated in s. 220.193,
   95  those enumerated in s. 288.9916, those enumerated in s.
   96  220.1899, those enumerated in s. 220.194, and those enumerated
   97  in s. 220.196.
   98         Section 13. Paragraph (a) of subsection (1) of section
   99  220.13, Florida Statutes, is amended to read:
  100         220.13 “Adjusted federal income” defined.—
  101         (1) The term “adjusted federal income” means an amount
  102  equal to the taxpayer’s taxable income as defined in subsection
  103  (2), or such taxable income of more than one taxpayer as
  104  provided in s. 220.131, for the taxable year, adjusted as
  105  follows:
  106         (a) Additions.—There shall be added to such taxable income:
  107         1.a. The amount of any tax upon or measured by income,
  108  excluding taxes based on gross receipts or revenues, paid or
  109  accrued as a liability to the District of Columbia or any state
  110  of the United States which is deductible from gross income in
  111  the computation of taxable income for the taxable year.
  112         b.Notwithstanding sub-subparagraph a., if a credit taken
  113  under s. 220.1875 is added to taxable income in a previous
  114  taxable year under subparagraph 11. and is taken as a deduction
  115  for federal tax purposes in the current taxable year, the amount
  116  of the deduction allowed shall not be added to taxable income in
  117  the current year. The exception in this sub-subparagraph is
  118  intended to ensure that the credit under s. 220.1875 is added in
  119  the applicable taxable year and does not result in a duplicate
  120  addition in a subsequent year.
  121         2. The amount of interest which is excluded from taxable
  122  income under s. 103(a) of the Internal Revenue Code or any other
  123  federal law, less the associated expenses disallowed in the
  124  computation of taxable income under s. 265 of the Internal
  125  Revenue Code or any other law, excluding 60 percent of any
  126  amounts included in alternative minimum taxable income, as
  127  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  128  taxpayer pays tax under s. 220.11(3).
  129         3. In the case of a regulated investment company or real
  130  estate investment trust, an amount equal to the excess of the
  131  net long-term capital gain for the taxable year over the amount
  132  of the capital gain dividends attributable to the taxable year.
  133         4. That portion of the wages or salaries paid or incurred
  134  for the taxable year which is equal to the amount of the credit
  135  allowable for the taxable year under s. 220.181. This
  136  subparagraph shall expire on the date specified in s. 290.016
  137  for the expiration of the Florida Enterprise Zone Act.
  138         5. That portion of the ad valorem school taxes paid or
  139  incurred for the taxable year which is equal to the amount of
  140  the credit allowable for the taxable year under s. 220.182. This
  141  subparagraph shall expire on the date specified in s. 290.016
  142  for the expiration of the Florida Enterprise Zone Act.
  143         6. The amount taken as a credit under s. 220.195 which is
  144  deductible from gross income in the computation of taxable
  145  income for the taxable year.
  146         7. That portion of assessments to fund a guaranty
  147  association incurred for the taxable year which is equal to the
  148  amount of the credit allowable for the taxable year.
  149         8. In the case of a nonprofit corporation that which holds
  150  a pari-mutuel permit and that which is exempt from federal
  151  income tax as a farmers’ cooperative, an amount equal to the
  152  excess of the gross income attributable to the pari-mutuel
  153  operations over the attributable expenses for the taxable year.
  154         9. The amount taken as a credit for the taxable year under
  155  s. 220.1895.
  156         10. Up to 9 nine percent of the eligible basis of any
  157  designated project which is equal to the credit allowable for
  158  the taxable year under s. 220.185.
  159         11.The amount taken as a credit for the taxable year under
  160  s. 220.1875. The addition in this subparagraph is intended to
  161  ensure that the same amount is not allowed for the tax purposes
  162  of this state as both a deduction from income and a credit
  163  against the tax. This addition is not intended to result in
  164  adding the same expense back to income more than once.
  165         11.12. The amount taken as a credit for the taxable year
  166  under s. 220.192.
  167         12.13. The amount taken as a credit for the taxable year
  168  under s. 220.193.
  169         13.14. Any portion of a qualified investment, as defined in
  170  s. 288.9913, which is claimed as a deduction by the taxpayer and
  171  taken as a credit against income tax pursuant to s. 288.9916.
  172         14.15. The costs to acquire a tax credit pursuant to s.
  173  288.1254(5) that are deducted from or otherwise reduce federal
  174  taxable income for the taxable year.
  175         15.16. The amount taken as a credit for the taxable year
  176  pursuant to s. 220.194.
  177         16.17. The amount taken as a credit for the taxable year
  178  under s. 220.196. The addition in this subparagraph is intended
  179  to ensure that the same amount is not allowed for the tax
  180  purposes of this state as both a deduction from income and a
  181  credit against the tax. The addition is not intended to result
  182  in adding the same expense back to income more than once.
  183         Section 14. Subsection (2) of section 220.186, Florida
  184  Statutes, is amended to read:
  185         220.186 Credit for Florida alternative minimum tax.—
  186         (2) The credit pursuant to this section shall be the amount
  187  of the excess, if any, of the tax paid based upon taxable income
  188  determined pursuant to s. 220.13(2)(k) over the amount of tax
  189  which would have been due based upon taxable income without
  190  application of s. 220.13(2)(k), before application of this
  191  credit without application of any credit under s. 220.1875.
  192         Section 15. Paragraph (b) of subsection (6) of section
  193  1002.20, Florida Statutes, is amended to read:
  194         1002.20 K-12 student and parent rights.—Parents of public
  195  school students must receive accurate and timely information
  196  regarding their child’s academic progress and must be informed
  197  of ways they can help their child to succeed in school. K-12
  198  students and their parents are afforded numerous statutory
  199  rights including, but not limited to, the following:
  200         (6) EDUCATIONAL CHOICE.—
  201         (b) Private educational choices.—Parents of public school
  202  students may seek private educational choice options under
  203  certain programs.
  204         1. Under the McKay Scholarships for Students with
  205  Disabilities Program, the parent of a public school student with
  206  a disability may request and receive a McKay Scholarship for the
  207  student to attend a private school in accordance with s.
  208  1002.39.
  209         2.Under the Florida Tax Credit Scholarship Program, the
  210  parent of a student who qualifies for free or reduced-price
  211  school lunch or who is currently placed, or during the previous
  212  state fiscal year was placed, in foster care as defined in s.
  213  39.01 may seek a scholarship from an eligible nonprofit
  214  scholarship-funding organization in accordance with s. 1002.395.
  215         2.3. Under the Florida Personal Learning Scholarship
  216  Accounts Program, the parent of a student with a qualifying
  217  disability may apply for a personal learning scholarship to be
  218  used for individual educational needs in accordance with s.
  219  1002.385.
  220         Section 16. Subsection (2) of section 1002.23, Florida
  221  Statutes, is amended to read:
  222         1002.23 Family and School Partnership for Student
  223  Achievement Act.—
  224         (2) To facilitate meaningful parent and family involvement,
  225  the Department of Education shall develop guidelines for a
  226  parent guide to successful student achievement which describes
  227  what parents need to know about their child’s educational
  228  progress and how they can help their child to succeed in school.
  229  The guidelines shall include, but need not be limited to:
  230         (a) Parental information regarding:
  231         1. Requirements for their child to be promoted to the next
  232  grade, as provided for in s. 1008.25;
  233         2. Progress of their child toward achieving state and
  234  district expectations for academic proficiency;
  235         3. Assessment results, including report cards and progress
  236  reports;
  237         4. Qualifications of their child’s teachers; and
  238         5. School entry requirements, including required
  239  immunizations and the recommended immunization schedule;
  240         (b) Services available for parents and their children, such
  241  as family literacy services; mentoring, tutorial, and other
  242  academic reinforcement programs; college planning, academic
  243  advisement, and student counseling services; and after-school
  244  programs;
  245         (c) Opportunities for parental participation, such as
  246  parenting classes, adult education, school advisory councils,
  247  and school volunteer programs;
  248         (d) Opportunities for parents to learn about rigorous
  249  academic programs that may be available for their child, such as
  250  honors programs, dual enrollment, advanced placement,
  251  International Baccalaureate, International General Certificate
  252  of Secondary Education (pre-AICE), Advanced International
  253  Certificate of Education, Florida Virtual High School courses,
  254  and accelerated access to postsecondary education;
  255         (e) Educational choices, as provided for in s. 1002.20(6),
  256  and Florida tax credit scholarships, as provided for in s.
  257  1002.395;
  258         (f) Classroom and test accommodations available for
  259  students with disabilities;
  260         (g) School board rules, policies, and procedures for
  261  student promotion and retention, academic standards, student
  262  assessment, courses of study, instructional materials, and
  263  contact information for school and district offices; and
  264         (h) Resources for information on student health and other
  265  available resources for parents.
  266         Section 17. Paragraphs (e) and (g) of subsection (2),
  267  paragraph (b) of subsection (3), paragraph (c) of subsection
  268  (4), paragraph (c) of subsection (9), and paragraph (g) of
  269  subsection (13) of section 1002.385, Florida Statutes, are
  270  amended to read:
  271         1002.385 The Gardiner Scholarship.—
  272         (2) DEFINITIONS.—As used in this section, the term:
  273         (e)“Eligible nonprofit scholarship-funding organization”
  274  or “organization” means a nonprofit scholarship-funding
  275  organization that is approved pursuant to s. 1002.395(15).
  276         (f)(g) “Eligible private school” means a private school, as
  277  defined in s. 1002.01, which is located in this state, which
  278  offers an education to students in any grade from kindergarten
  279  to grade 12, and which meets the requirements of:
  280         1. Sections 1002.42 and 1002.421; and
  281         2. A scholarship program under s. 1002.39 or s. 1002.395,
  282  as applicable, if the private school participates in a
  283  scholarship program under s. 1002.39 or s. 1002.395.
  284         (3) PROGRAM ELIGIBILITY.—A parent of a student with a
  285  disability may request and receive from the state a Gardiner
  286  Scholarship for the purposes specified in subsection (5) if:
  287         (b) The parent has applied to an eligible nonprofit
  288  scholarship-funding organization to participate in the program
  289  by February 1 before the school year in which the student will
  290  participate or an alternative date as set by the organization
  291  for any vacant, funded slots. The request must be communicated
  292  directly to the organization in a manner that creates a written
  293  or electronic record of the request and the date of receipt of
  294  the request. In addition to the application and any
  295  documentation required by the organization or by State Board of
  296  Education rule, the parent may submit a final verification
  297  document pursuant to this paragraph to receive scholarship funds
  298  in the student’s account before the department confirms program
  299  eligibility pursuant to paragraph (9)(e). The final verification
  300  document must consist of one of the following items applicable
  301  to the student:
  302         1. A completed withdrawal form from the school district, if
  303  the student was enrolled in a public school before the
  304  determination of program eligibility.
  305         2. A letter of admission or enrollment from an eligible
  306  private school for the fiscal year in which the student wishes
  307  to participate and, if applicable, a copy of the notification
  308  from the private school that the student has withdrawn from the
  309  John M. McKay Scholarships for Students with Disabilities
  310  Program or the Florida Tax Credit Scholarship Program.
  311         3. A copy of the notice of the parent’s intent to establish
  312  and maintain a home education program required by s.
  313  1002.41(1)(a) or the annual educational evaluation of the
  314  student in a home education program, which is required by s.
  315  1002.41(2).
  316         (4) PROGRAM PROHIBITIONS.—A student is not eligible for the
  317  program if he or she is:
  318         (c) Receiving a scholarship pursuant to the Florida Tax
  319  Credit Scholarship Program under s. 1002.395 or the John M.
  320  McKay Scholarships for Students with Disabilities Program under
  321  s. 1002.39.
  322         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department
  323  shall:
  324         (c) Investigate any written complaint of a violation of
  325  this section by a parent, a student, a private school, a public
  326  school or a school district, an organization, a provider, or
  327  another appropriate party in accordance with the process
  328  established by s. 1002.421.
  329         (13) FUNDING AND PAYMENT.—
  330         (g) In addition to funds appropriated for scholarship
  331  awards and subject to a separate, specific legislative
  332  appropriation, an organization may receive an amount equivalent
  333  to not more than 3 percent of the amount of each scholarship
  334  award from state funds for administrative expenses if the
  335  organization has operated as a nonprofit entity for at least the
  336  preceding 3 fiscal years and did not have any findings of
  337  material weakness or material noncompliance in its most recent
  338  audit under s. 1002.395(6)(m). Such administrative expenses must
  339  be reasonable and necessary for the organization’s management
  340  and distribution of scholarships under this section. Funds
  341  authorized under this paragraph may not be used for lobbying or
  342  political activity or expenses related to lobbying or political
  343  activity. An organization may not charge an application fee for
  344  a scholarship. Administrative expenses may not be deducted from
  345  funds appropriated for scholarship awards.
  346         Section 18. Subsection (3) of section 1002.39, Florida
  347  Statutes, is amended to read:
  348         1002.39 The John M. McKay Scholarships for Students with
  349  Disabilities Program.—There is established a program that is
  350  separate and distinct from the Opportunity Scholarship Program
  351  and is named the John M. McKay Scholarships for Students with
  352  Disabilities Program.
  353         (3) JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.—A student is
  354  not eligible for a John M. McKay Scholarship:
  355         (a) While he or she is enrolled in a school operating for
  356  the purpose of providing educational services to youth in
  357  Department of Juvenile Justice commitment programs;
  358         (b)While he or she is receiving a Florida tax credit
  359  scholarship under s. 1002.395;
  360         (b)(c) While he or she is receiving an educational
  361  scholarship pursuant to this chapter;
  362         (c)(d) While he or she is participating in a home education
  363  program as defined in s. 1002.01(1);
  364         (d)(e) While he or she is participating in a private
  365  tutoring program pursuant to s. 1002.43;
  366         (e)(f) While he or she is participating in a virtual
  367  school, correspondence school, or distance learning program that
  368  receives state funding pursuant to the student’s participation
  369  unless the participation is limited to no more than two courses
  370  per school year;
  371         (f)(g) While he or she is enrolled in the Florida School
  372  for the Deaf and the Blind;
  373         (g)(h) While he or she is not having regular and direct
  374  contact with his or her private school teachers at the school’s
  375  physical location unless he or she is enrolled in the private
  376  school’s transition-to-work program pursuant to subsection (9);
  377  or
  378         (h)(i) If he or she has been issued a temporary 504
  379  accommodation plan under s. 504 of the Rehabilitation Act of
  380  1973 which is valid for 6 months or less.
  381         Section 19. Paragraph (q) of subsection (1) of section
  382  1002.421, Florida Statutes, is amended to read:
  383         1002.421 State school choice scholarship program
  384  accountability and oversight.—
  386  school participating in an educational scholarship program
  387  established pursuant to this chapter must be a private school as
  388  defined in s. 1002.01(2) in this state, be registered, and be in
  389  compliance with all requirements of this section in addition to
  390  private school requirements outlined in s. 1002.42, specific
  391  requirements identified within respective scholarship program
  392  laws, and other provisions of Florida law that apply to private
  393  schools, and must:
  394         (q) Provide a report from an independent certified public
  395  accountant who performs the agreed-upon procedures developed
  396  pursuant to s. 1002.395(6)(o) if the private school receives
  397  more than $250,000 in funds from scholarships awarded under this
  398  chapter in a state fiscal year. A private school subject to this
  399  subsection must annually submit the report by September 15 to
  400  the scholarship-funding organization that awarded the majority
  401  of the school’s scholarship funds. However, a school that
  402  receives more than $250,000 in scholarship funds only through
  403  the John M. McKay Scholarship for Students with Disabilities
  404  Program pursuant to s. 1002.39 must submit the annual report by
  405  September 15 to the department. The agreed-upon procedures must
  406  be conducted in accordance with attestation standards
  407  established by the American Institute of Certified Public
  408  Accountants.
  410  The department shall suspend the payment of funds to a private
  411  school that knowingly fails to comply with this subsection, and
  412  shall prohibit the school from enrolling new scholarship
  413  students, for 1 fiscal year and until the school complies. If a
  414  private school fails to meet the requirements of this subsection
  415  or has consecutive years of material exceptions listed in the
  416  report required under paragraph (q), the commissioner may
  417  determine that the private school is ineligible to participate
  418  in a scholarship program.
  419         Section 20. This act shall take effect July 1, 2019.