HB 0805 2003
1	CHAMBER ACTION
2
3
4
5
6	The Committee on Appropriations recommends the following:
7
8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to scholarships for dependent children of
12	veterans and military personnel; creating s. 220.1875,
13	F.S.; establishing a program for contributions to
14	nonprofit scholarship-funding organizations to be used for
15	dependent children of veterans and military personnel;
16	providing for tax credits that may be granted each fiscal
17	year for such contributions; providing requirements and
18	limitations; providing an effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1. Section 220.1875, Florida Statutes, is created
23	to read:
24	220.1875 Credits for contributions to nonprofit
25	scholarship-funding organizations; scholarships for dependent
26	children of United States Armed Forces veterans, active duty and
27	reserve personnel in the United States military, or members of
28	the Florida National Guard.--
29	(1) PURPOSE.--The purpose of this section is to:
30	(a) Encourage private, voluntary contributions to
31	nonprofit scholarship-funding organizations.
32	(b) Expand educational opportunities for dependent
33	children of United States Armed Forces veterans, active duty and
34	reserve personnel in the United States military, or members of
35	the Florida National Guard.
36	(c) Enable children in this state to achieve a greater
37	level of excellence in their education.
38	(2) DEFINITIONS.--As used in this section, the term:
39	(a) "Department" means the Department of Revenue.
40	(b) "Eligible contribution" means a monetary contribution
41	from a taxpayer, subject to the restrictions provided in this
42	section, to an eligible nonprofit scholarship-funding
43	organization. The taxpayer making the contribution may not
44	designate a specific child as the beneficiary of the
45	contribution. The taxpayer may not contribute more than $5
46	million to any single eligible nonprofit scholarship-funding
47	organization.
48	(c) "Eligible nonpublic school" means a nonpublic school
49	located in Florida that offers an education to students in any
50	grades K-12 and that meets the requirements in subsection (5).
51	(d) "Eligible nonprofit scholarship-funding organization"
52	means a charitable organization that is exempt from federal
53	income tax pursuant to s. 501(c)(3) of the Internal Revenue Code
54	and that complies with the provisions of subsection (4).
55	(e) "Qualified student" means a dependent child of a
56	United States Armed Forces veteran, a dependent child of active
57	duty or reserve personnel in the United States military, a
58	dependent child of a member of the Florida National Guard, or
59	any qualified student, pursuant to s. 220.187, as further
60	provided in paragraph (4)(d).
61	(3) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
62	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
63	(a) There is allowed a credit of 100 percent of an
64	eligible contribution against any tax due for a taxable year
65	under this chapter. However, such a credit may not exceed 75
66	percent of the tax due under this chapter for the taxable year,
67	after the application of any other allowable credits by the
68	taxpayer. The credit granted by this section shall be reduced
69	by the difference between the amount of federal corporate income
70	tax taking into account the credit granted by this section and
71	the amount of federal corporate income tax without application
72	of the credit granted by this section.
73	(b) The total amount of tax credit which may be granted
74	each state fiscal year under this section is $10 million.
75	(c) A taxpayer who files a Florida consolidated return as
76	a member of an affiliated group pursuant to s. 220.131(1) may be
77	allowed the credit on a consolidated return basis; however, the
78	total credit taken by the affiliated group is subject to the
79	limitation established under paragraph (a).
80	(4) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
81	ORGANIZATIONS.--
82	(a) An eligible nonprofit scholarship-funding organization
83	shall provide scholarships, from eligible contributions, to
84	qualified students for:
85	1. Tuition or textbook expenses for, or transportation to,
86	an eligible nonpublic school. At least 75 percent of the
87	scholarship funding must be used to pay tuition expenses; or
88	2. Transportation expenses to a Florida public school that
89	is located outside the district in which the student resides.
90	(b) An eligible nonprofit scholarship-funding organization
91	shall give priority to qualified students who received a
92	scholarship from an eligible nonprofit scholarship-funding
93	organization during the previous school year.
94	(c) The amount of a scholarship provided to any child for
95	any single school year by all eligible nonprofit scholarship-
96	funding organizations from eligible contributions shall not
97	exceed the following annual limits:
98	1. Three thousand five hundred dollars for a scholarship
99	awarded to a student enrolled in an eligible nonpublic school.
100	2. Five hundred dollars for a scholarship awarded to a
101	student enrolled in a Florida public school that is located
102	outside the district in which the student resides.
103	(d) An eligible nonprofit scholarship-funding organization
104	that receives an eligible contribution must spend 100 percent of
105	the eligible contribution to provide scholarships in the same
106	state fiscal year in which the contribution was received. An
107	eligible nonprofit scholarship-funding organization may use
108	eligible contributions to provide scholarships to qualified
109	students, pursuant to s. 220.187, after it has served qualified
110	dependent children of United States Armed Forces veterans,
111	dependent children of active duty or reserve personnel in the
112	United States military, and dependent children of members of the
113	Florida National Guard. No portion of eligible contributions may
114	be used for administrative expenses. All interest accrued from
115	contributions must be used for scholarships.
116	(e) An eligible nonprofit scholarship-funding organization
117	that receives eligible contributions must provide to the Auditor
118	General an annual financial and compliance audit of its accounts
119	and records conducted by an independent certified public
120	accountant and in accordance with rules adopted by the Auditor
121	General.
122	(f) Payment of the scholarship by the eligible nonprofit
123	scholarship-funding organization shall be by individual warrant
124	or check made payable to the student's parent. If the parent
125	chooses for his or her child to attend an eligible nonpublic
126	school, the warrant or check must be mailed by the eligible
127	nonprofit scholarship-funding organization to the nonpublic
128	school of the parent's choice, and the parent shall
129	restrictively endorse the warrant or check to the nonpublic
130	school. An eligible nonprofit scholarship-funding organization
131	shall ensure that, upon receipt of a scholarship warrant or
132	check, the parent to whom the warrant or check is made
133	restrictively endorses the warrant or check to the nonpublic
134	school of the parent's choice for deposit into the account of
135	the nonpublic school.
136	(5) ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An eligible
137	nonpublic school must:
138	(a) Demonstrate fiscal soundness by being in operation for
139	one school year or provide the Department of Education with a
140	statement by a certified public accountant confirming that the
141	nonpublic school desiring to participate is insured and the
142	owner or owners have sufficient capital or credit to operate the
143	school for the upcoming year serving the number of students
144	anticipated with expected revenues from tuition and other
145	sources that may be reasonably expected. In lieu of such a
146	statement, a surety bond or letter of credit for the amount
147	equal to the scholarship funds for any quarter may be filed with
148	the department.
149	(b) Comply with the antidiscrimination provisions of 42
150	U.S.C. s. 2000d.
151	(c) Meet state and local health and safety laws and codes.
152	(d) Comply with all state laws relating to general
153	regulation of nonpublic schools.
154	(6) ADMINISTRATION; RULES.--
155	(a) If the credit granted pursuant to this section is not
156	fully used in any one year, the unused amount may not be carried
157	forward. A taxpayer may not convey, assign, or transfer the
158	credit authorized by this section to another entity unless all
159	of the assets of the taxpayer are conveyed, assigned, or
160	transferred in the same transaction.
161	(b) An application for a tax credit pursuant to this
162	section shall be submitted to the department on forms
163	established by rule of the department.
164	(c) The department and the Department of Education shall
165	develop a cooperative agreement to assist in the administration
166	of this section. The Department of Education shall be
167	responsible for annually submitting, by March 15, to the
168	department a list of eligible nonprofit scholarship-funding
169	organizations that meet the requirements of paragraph (2)(d) and
170	for monitoring eligibility of nonprofit scholarship-funding
171	organizations that meet the requirements of paragraph (2)(d),
172	eligibility of nonpublic schools that meet the requirements of
173	paragraph (2)(c), and eligibility of expenditures under this
174	section as provided in subsection (4).
175	(d) The department shall adopt rules necessary to
176	administer this section, including rules establishing
177	application forms and procedures and governing the allocation of
178	tax credits under this section on a first-come, first-served
179	basis.
180	(e) The Department of Education shall adopt rules
181	necessary to determine eligibility of nonprofit scholarship-
182	funding organizations as defined in paragraph (2)(d) and
183	according to the provisions of subsection (4) and identify
184	qualified students as defined in paragraph (2)(e).
185	(7) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
186	contributions received by an eligible nonprofit scholarship-
187	funding organization shall be deposited in a manner consistent
188	with s. 18.10(2).
189	Section 2. This act shall take effect upon becoming a law.
190