Amendment

Bill No. 2882

Amendment No. 308089

CHAMBER ACTION
Senate		House
.
.
.

---

---

1	Representatives Goodlette and Kilmer offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5
6	Section 1.  Subsections (1), (2), and (4), paragraph (b) of
7	subsection (3), paragraph (f) of subsection (5), and paragraphs
8	(e) and (f) of subsection (6) of section 1002.39, Florida
9	Statutes, are amended, paragraphs (g) through (k) are added to
10	subsection (3), paragraph (g) is added to subsection (6),
11	subsection (8) is renumbered as subsection (9) and amended, and
12	a new subsection (8) is added to said section, to read:
13	1002.39  The John M. McKay Scholarships for Students with
14	Disabilities Program.--There is established a program that is
15	separate and distinct from the Opportunity Scholarship Program
16	and is named the John M. McKay Scholarships for Students with
17	Disabilities Program, pursuant to this section.
18	(1)  THE JOHN M. MCKAY SCHOLARSHIPS FOR STUDENTS WITH
19	DISABILITIES PROGRAM.--The John M. McKay Scholarships for
20	Students with Disabilities Program is established to provide the
21	option to attend a public school other than the one to which
22	assigned, or to provide a scholarship to a private school of
23	choice, for students with disabilities for whom an individual
24	education plan has been written in accordance with rules of the
25	State Board of Education.  Students with disabilities include K-
26	12 students who are documented as having mental retardation; a
27	mentally handicapped, speech or and language impairment; a
28	impaired, deaf or hard of hearing impairment, including
29	deafness; a visual impairment, including blindness; a, visually
30	impaired, dual sensory impairment; a physical impairment; a
31	serious emotional disturbance, including an emotional handicap;
32	a impaired, physically impaired, emotionally handicapped,
33	specific learning disability, including, but not limited to,
34	dyslexia, dyscalculia, or developmental aphasia; a traumatic
35	brain injury; disabled, hospitalized or homebound, or autism
36	autistic.
37	(2)  SCHOLARSHIP ELIGIBILITY.--
38	(a)  The parent of a public school student with a
39	disability who is dissatisfied with the student's progress may
40	request and receive from the state a John M. McKay Scholarship
41	for the child to enroll in and attend a private school in
42	accordance with this section if:
43	1.(a)  By assigned school attendance area or by special
44	assignment, the student has spent the prior school year in
45	attendance at a Florida public school. Prior school year in
46	attendance means that the student was enrolled and reported by a
47	school district for funding during the preceding October and
48	February Florida Education Finance Program surveys in
49	kindergarten through grade 12.
50	2.(b)  The parent has obtained acceptance for admission of
51	the student to a private school that is eligible for the program
52	under subsection (4) and has notified the school district of the
53	request for a scholarship at least 60 days prior to the date of
54	the first scholarship payment. The parental notification must be
55	through a communication directly to the district or through the
56	Department of Education to the district in a manner that creates
57	a written or electronic record of the notification and the date
58	of receipt of the notification.
59
60	This section does not apply to a student who is enrolled in a
61	school operating for the purpose of providing educational
62	services to youth in Department of Juvenile Justice commitment
63	programs. For purposes of continuity of educational choice, the
64	scholarship shall remain in force until the student returns to a
65	public school, or graduates from high school, or reaches the age
66	of 22, whichever occurs first. However, at any time, the
67	student's parent may remove the student from the private school
68	and place the student in another private school that is eligible
69	for the program under subsection (4) or in a public school as
70	provided in subsection (3).
71	(b)  A student is not eligible to receive a scholarship
72	under this section if he or she:
73	1.  Receives a scholarship from an eligible nonprofit
74	scholarship-funding organization under s. 220.187;
75	2.  Receives an opportunity scholarship under s. 1002.38;
76	3.  Participates in a home education program as defined in
77	s. 1002.01(1);
78	4.  Receives instruction from a correspondence school,
79	participates in distance learning courses, or participates in a
80	private tutoring program;
81	5.  Does not have regular and direct contact with his or
82	her private school teachers at the school's physical location;
83	or
84	6.  Is enrolled in a school operating for the purpose of
85	providing educational services to youth in commitment programs
86	of the Department of Juvenile Justice.
87
88	Notwithstanding the prohibition set forth in subparagraph 4., a
89	student who receives a John M. McKay Scholarship may participate
90	in a course offered by a correspondence school, a distance
91	learning course, or a private tutoring program the tuition and
92	other costs of which are not paid by scholarship funds provided
93	under this section.
94	(3)  SCHOOL DISTRICT AND DEPARTMENT OF EDUCATION
95	OBLIGATIONS.--
96	(b)1.  For a student with disabilities who does not have a
97	matrix of services under s. 1011.62(1)(e), the school district
98	must complete a matrix that assigns the student to one of the
99	levels of service as they existed prior to the 2000-2001 school
100	year.
101	2.a.  The school district must complete the matrix of
102	services for any student who is participating in the John M.
103	McKay Scholarships for Students with Disabilities Program and
104	must notify the Department of Education of the student's matrix
105	level within 30 days after receiving notification by the
106	student's parent of intent to participate in the scholarship
107	program.
108	b.  A school district may change a matrix of services only
109	if the change is to:
110	(I)  Correct a technical, typographical, or calculation
111	error; or
112	(II)  Align the matrix of services with the student's
113	individual education plan completed by the public school
114	district for use in the public school prior to the student
115	enrolling in or attending a private school.
116	3.  The Department of Education shall notify the private
117	school of the amount of the scholarship within 10 days after
118	receiving the school district's notification of the student's
119	matrix level.
120	4.  Within 10 school days after it receives notification of
121	a parent's intent to apply for a John M. McKay Scholarship, a
122	district school board must notify the student's parent if the
123	matrix has not been completed and provide the parent with the
124	date for completion of the matrix required in this paragraph.
125	(g)  The Department of Education shall establish a toll-
126	free hotline that provides parents and private schools with
127	information on participation in the John M. McKay Scholarships
128	for Students with Disabilities Program.
129	(h)  The Department of Education shall establish a process
130	by which individuals may notify the department of any violation
131	by a private school of state laws relating to program
132	participation. The department shall conduct an investigation of
133	any written complaint of a violation of this section if the
134	complaint is signed by the complainant and is legally
135	sufficient. A complaint is legally sufficient if it contains
136	ultimate facts that show that a violation of this section or any
137	rule adopted by the State Board of Education or other state
138	agency has occurred. In order to determine legal sufficiency,
139	the Department of Education may require supporting information
140	or documentation from the complainant.
141	(i)  The Department of Education shall require an annual
142	notarized sworn compliance statement by participating private
143	schools certifying compliance with state laws and shall retain
144	such records. The Department of Education shall approve a
145	process for verifying the information provided by the private
146	school.
147	(j)  The Department of Education shall regularly cross-
148	check the list of participating scholarship students with the
149	public school enrollment lists to avoid duplication.
150	(k)  A school district shall provide notification to
151	parents of the availability of a reassessment of each student
152	who receives a John M. McKay Scholarship at least every 3 years.
153	(4)  PRIVATE SCHOOL ELIGIBILITY.--To be eligible to
154	participate in the John M. McKay Scholarships for Students with
155	Disabilities Program, a private school must be a Florida private
156	school, as defined in s. 1002.01(2), may be sectarian or
157	nonsectarian, and must:
158	(a)  Demonstrate fiscal soundness by being in operation for
159	2 or more consecutive school years or obtain 1 school year or
160	provide the Department of Education with a statement by a
161	certified public accountant confirming that the private school
162	desiring to participate is insured and the owner or owners have
163	sufficient capital or credit to operate the school for the
164	upcoming year serving the number of students anticipated with
165	expected revenues from tuition and other sources that may be
166	reasonably expected. In lieu of such a statement, a surety bond
167	or letter of credit for the amount equal to the scholarship
168	funds for any quarter to may be filed with the Department of
169	Education. The surety bond or letter of credit shall serve to
170	secure expenditures of scholarship funds should such funds be
171	found to have been used for unlawful purposes. However, if
172	during the school year a private school exhibits financial
173	difficulty or is otherwise not in compliance with this section,
174	the Commissioner of Education may impose additional requirements
175	on the private school, which may include additional security
176	bonding.
177	(b)  Notify the Department of Education of its intent to
178	participate in the program under this section. The notice must
179	specify the grade levels and services that the private school
180	has available for students with disabilities who are
181	participating in the scholarship program.
182	(c)  Comply with the antidiscrimination provisions of 42
183	U.S.C. s. 2000d.
184	(d)  Meet state and local health and safety laws and codes,
185	including, but not limited to, laws pertaining to:
186	1.  Fire safety.
187	2.  Building codes.
188	(e)1.  Require each John M. McKay Scholarship student to
189	participate at least annually in a student assessment which, as
190	determined by the private school in consultation with the
191	student's parent, will demonstrate the student's skill level to
192	the student's parent.
193	2.  Notify the student's parent at least annually about the
194	student's skill level on a student assessment that is determined
195	by the private school. Be academically accountable to the parent
196	for meeting the educational needs of the student.
197	(f)  Employ or contract with teachers who hold
198	baccalaureate or higher degrees, or have at least 3 years of
199	teaching experience in public or private schools, or have
200	special skills, knowledge, or expertise that qualifies them to
201	provide instruction in subjects taught.
202	(g)  Comply with all state laws relating to general
203	regulation of private schools, including, but not limited to,
204	laws pertaining to:
205	1.  Annual private school survey required in s. 1002.42(2).
206	2.  Retention of records required in s. 1002.42(3).
207	3.  Attendance records and reports required in s.
208	1003.23(2).
209	4.  School-entry health examinations and immunizations
210	required in s. 1003.22.
211	5.  Attendance requirements prescribed in ss. 1003.01(13)
212	and 1003.21(1).
213	(h)  Publish and adhere to the tenets of its adopted
214	published disciplinary procedures prior to the expulsion of a
215	scholarship student.
216	(i)  Within 60 days after employment, for any individual
217	with direct student contact with John M. McKay Scholarship
218	students, file with the Department of Law Enforcement a complete
219	set of fingerprints for state processing for a criminal
220	background check. The Department of Law Enforcement shall in
221	turn submit the fingerprints to the Federal Bureau of
222	Investigation for federal processing for a background check. An
223	"individual with direct student contact with John M. McKay
224	Scholarship students" means any individual who:
225	1.  Is employed by a private school in any capacity,
226	including an individual employed as a child care provider, a
227	teacher, or another member of school personnel, and who is
228	responsible for the provision of care, treatment, education,
229	training, instruction, supervision, or recreation of John M.
230	McKay Scholarship students;
231	2.  Is the owner or operator of the private school
232	accepting John M. McKay Scholarship students; or
233	3.  Has unsupervised access to a John M. McKay Scholarship
234	student for whom the private school is responsible.
235
236	The costs of fingerprinting and the background check shall not
237	be borne by the state. The results of a criminal background
238	check for private school owners shall be reported to the
239	Department of Education. The owner or operator of the private
240	school shall receive the results of a criminal background check
241	for all other persons subject to the private school background
242	check requirements and immediately report to the Department of
243	Education any individual with direct student contact with John
244	M. McKay Scholarship students who has failed the Level 2
245	background check. Employment of such an individual shall cause a
246	private school to be ineligible for participation in the
247	scholarship program. An individual holding a valid Florida
248	teaching certificate who has been fingerprinted pursuant to s.
249	1012.32 shall not be required to comply with the provisions of
250	this paragraph.
251	(j)  Annually comply with the requirements of the
252	Department of Education to submit a notarized sworn compliance
253	statement certifying compliance with state laws pursuant to
254	subsection (3). The form and timeline for submission of the
255	compliance statement shall be specified in rules adopted by the
256	State Board of Education. The statement must be filed with the
257	Department of Education.
258	(k)  Comply with all applicable state agency rules relating
259	to private schools.
260	(l)  Not operate as a private tutoring program as described
261	in s. 1002.43, a correspondence school, or a distance learning
262	school or provide instruction to students at home.
263	(m)  Maintain a physical private school location where a
264	scholarship student regularly attends classes.
265	(n)  Require the parent of each scholarship student to
266	personally restrictively endorse the scholarship check to the
267	school. The school may not:
268	1.  Act as attorney in fact for parents of a scholarship
269	student under the authority of a power of attorney executed by
270	such parents, or under any other authority, to endorse
271	scholarship warrants on behalf of parents.
272	2.  Send or direct John M. McKay Scholarship funds to
273	parents of a scholarship student who receives instruction at
274	home.
275	3.  Accept a John M. McKay Scholarship student until the
276	notarized sworn compliance statement has been completed and has
277	been submitted to and verified by the Department of Education.
278	(o)  Annually register with the Department of Education.
279	Each owner or administrator of a private school must provide the
280	following information:
281	1.  The legal business and trade name, mailing address, and
282	business location of the private school.
283	2.  The full name, address, and telephone number of each
284	owner or administrator of the private school.
285	3.  A notification of the private school's intent to
286	participate in the program under this section. The notice must
287	specify the grade levels and services that the private school
288	has available for students with disabilities who are
289	participating in the scholarship program.
290	(p)  Provide the Department of Education with all
291	documentation required for each scholarship student's
292	participation in the scholarship program, including, but not
293	limited to:
294	1.  The private school's fee schedule, including, but not
295	limited to, fees for services, tuition, and instructional
296	materials, and each individual scholarship student's schedule of
297	fees and charges, at least 30 days before the first quarterly
298	scholarship payment is made for the student.
299	2.  The enrollment and attendance information, including an
300	on-line attendance verification form, for each scholarship
301	student at the private school, prior to each scholarship
302	payment.
303	(q)  Notify the Department of Education of any change in
304	the school's registered name or location prior to any such
305	change and notify the Department of Education within 15 days
306	after any other change in the registration information submitted
307	to the department.
308	(5)  OBLIGATION OF PROGRAM PARTICIPANTS.--
309	(f)  Upon receipt of a scholarship warrant, the parent to
310	whom the warrant is made must restrictively endorse the warrant
311	to the private school for deposit into the account of the
312	private school. The parent of a student participating in the
313	scholarship program may not designate any participating private
314	school as the parent's attorney in fact to sign a scholarship
315	warrant.
316	(6)  SCHOLARSHIP FUNDING AND PAYMENT.--
317	(e)  Following notification on July 1, September 1,
318	December 1, or February 1 of the number of program participants,
319	the Department of Education shall transfer, from General Revenue
320	funds only, the amount calculated under paragraph (b) from the
321	school district's total funding entitlement under the Florida
322	Education Finance Program and from authorized categorical
323	accounts to a separate account for the scholarship program for
324	quarterly disbursement to the parents of participating students.
325	When a student enters the scholarship program, the Department of
326	Education must receive all documentation required for the
327	student's participation, including, but not limited to, the
328	private school's and student's fee schedules, at least 30 days
329	before the first quarterly scholarship payment is made for the
330	student. The Department of Education may not make any
331	retroactive payments.
332	(f)  Upon proper documentation reviewed and approved by the
333	Department of Education, the Chief Financial Officer shall make
334	scholarship payments in four equal amounts no later than
335	September 1, November 1, February 1, and April 1 15 of each
336	academic year in which the scholarship is in force. The initial
337	payment shall be made after Department of Education verification
338	of admission acceptance, and subsequent payments shall be made
339	upon verification of continued enrollment and attendance at the
340	private school. Payment must be by individual warrant made
341	payable to the student's parent and mailed by the Department of
342	Education to the private school of the parent's choice, and the
343	parent shall restrictively endorse the warrant to the private
344	school for deposit into the account of the private school.
345	(g)  Subsequent to each scholarship payment, the Department
346	of Financial Services shall randomly review endorsed warrants to
347	confirm compliance with endorsement requirements.
348	(8)  COMMISSIONER AUTHORITY.--The Commissioner of Education
349	may suspend or prohibit a private school or a student from
350	participation in the scholarship program and take other action
351	necessary to ensure compliance with the provisions of this
352	section.
353	(9)(8)  RULES.--The State Board of Education shall may
354	adopt rules pursuant to ss. 120.536(1) and 120.54 to administer
355	this section, including rules for:
356	(a)  Administering the annual notarized sworn compliance
357	statement to all participating private schools.
358	(b)  Establishing forms for changes to a matrix by a school
359	district and the Department of Education.
360	(c)  Implementing the requirement that a private school
361	timely notify the Department of Education of material changes to
362	the school's registration information.
363	(d)  Establishing attendance-verification procedures and
364	forms.
365	(e)  Establishing procedures for determining student
366	eligibility and approving scholarships.
367
368	The rules related to the annual notarized sworn compliance
369	statement shall establish a deadline for the receipt of the
370	initial notarized sworn compliance statement from the private
371	school and shall enumerate the items to be included in the
372	statement. The rules shall enumerate the items to be included in
373	a subsequent annual notarized sworn compliance statement that is
374	required in January of each year from the private school.
375	However, the inclusion of eligible private schools within
376	options available to Florida public school students does not
377	expand the regulatory authority of the state, its officers, or
378	any school district to impose any additional regulation of
379	private schools beyond those reasonably necessary to enforce
380	requirements expressly set forth in this section.
381	Section 2.  Section 220.187, Florida Statutes, is amended
382	to read:
383	220.187  Credits for contributions to nonprofit
384	scholarship-funding organizations.--
385	(1)  PURPOSE.--The purpose of this section is to:
386	(a)  Encourage private, voluntary contributions to
387	nonprofit scholarship-funding organizations.
388	(b)  Expand educational opportunities for children of
389	families that have limited financial resources.
390	(c)  Enable children in this state to achieve a greater
391	level of excellence in their education.
392	(2)  DEFINITIONS.--As used in this section, the term:
393	(a)  "Department" means the Department of Revenue.
394	(b)  "Eligible contribution" means a monetary contribution
395	from a taxpayer, subject to the restrictions provided in this
396	section, to an eligible nonprofit scholarship-funding
397	organization. The taxpayer making the contribution may not
398	designate a specific child as the beneficiary of the
399	contribution. The taxpayer may not contribute more than $5
400	million to any single eligible nonprofit scholarship-funding
401	organization.
402	(c)(d)  "Eligible nonprofit scholarship-funding
403	organization" means a charitable organization that is exempt
404	from federal income tax pursuant to s. 501(c)(3) of the Internal
405	Revenue Code, that is a Florida entity formed under chapter 607,
406	chapter 608, or chapter 617 and whose principal office is
407	located in the state, and that complies with the provisions of
408	subsection (4).
409	(d)(c)  "Eligible private nonpublic school" means a private
410	nonpublic school, as defined in s. 1002.01(2), located in
411	Florida that offers an education to students in any grades K-12
412	and that meets the requirements in subsection (6) (5). An
413	eligible private school:
414	1.  Must maintain a physical location in this state where
415	each scholarship student regularly attends classes.
416	2.  May not be a correspondence school or distance learning
417	school.
418	3.  May not direct or provide scholarship funds to a parent
419	of a scholarship student who receives instruction under the
420	program at home.
421	4.  May not be a home education program as defined in s.
422	1002.01(1).
423	5.  May not be a private tutoring program as described in
424	s. 1002.43.
425	(e)  "Owner or operator" includes:
426	1.  An owner, president, officer, or director of an
427	eligible nonprofit scholarship-funding organization or a person
428	with equivalent decisionmaking authority over an eligible
429	nonprofit scholarship-funding organization.
430	2.  An owner, operator, superintendent, or principal of an
431	eligible private school or a person with equivalent
432	decisionmaking authority over an eligible private school.
433	(f)(e)  "Qualified student" means a student who qualifies
434	for free or reduced-price school lunches under the National
435	School Lunch Act and who:
436	1.  Was counted as a full-time equivalent student during
437	the previous state fiscal year for purposes of state per-student
438	funding;
439	2.  Received a scholarship from an eligible nonprofit
440	scholarship-funding organization during the previous school
441	year; or
442	3.  Is eligible to enter kindergarten or first grade.
443
444	A student is not eligible to receive a scholarship under this
445	section if the student is participating in the Opportunity
446	Scholarship Program under s. 1002.38, the John M. McKay
447	Scholarships for Students with Disabilities Program under s.
448	1002.39, or a home education program as defined in s.
449	1002.01(1). A student is not eligible to receive a scholarship
450	from more than one eligible nonprofit scholarship-funding
451	organization at the same time.
452	(3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
453	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
454	(a)  There is allowed a credit of 100 percent of an
455	eligible contribution against any tax due for a taxable year
456	under this chapter. However, such a credit may not exceed 75
457	percent of the tax due under this chapter for the taxable year,
458	after the application of any other allowable credits by the
459	taxpayer. However, at least 5 percent of the total statewide
460	amount authorized for the tax credit shall be reserved for
461	taxpayers who meet the definition of a small business provided
462	in s. 288.703(1) at the time of application. The credit granted
463	by this section shall be reduced by the difference between the
464	amount of federal corporate income tax taking into account the
465	credit granted by this section and the amount of federal
466	corporate income tax without application of the credit granted
467	by this section.
468	(b)  The total amount of tax credits and carryforward of
469	tax credits which may be granted each state fiscal year under
470	this section is $88 million. However, effective for tax years
471	beginning January 1, 2004, at least 1 percent of the total
472	statewide amount authorized for tax credits shall be reserved
473	for taxpayers who meet the definition of a small business
474	provided in s. 288.703(1) at the time of application.
475	(c)  A taxpayer who files a Florida consolidated return as
476	a member of an affiliated group pursuant to s. 220.131(1) may be
477	allowed the credit on a consolidated return basis; however, the
478	total credit taken by the affiliated group is subject to the
479	limitation established under paragraph (a).
480	(d)  Effective for tax years beginning January 1, 2004, a
481	taxpayer may rescind all or part of its allocated tax credit
482	under this section. The amount of the rescindment shall become
483	available for purposes of the cap for that state fiscal year
484	under this section to an eligible taxpayer as approved by the
485	department if the taxpayer receives notice from the department
486	that the rescindment has been accepted by the department, the
487	taxpayer has rescinded its tax credit prior to the conclusion of
488	the taxpayer's tax year, and the taxpayer has not previously
489	rescinded any or all of its tax credit allocation under this
490	section more than once in the previous 3 tax years. Any amount
491	rescinded under this paragraph shall become available to an
492	eligible taxpayer on a first-come, first-served basis based on
493	tax credit applications received after the date the rescindment
494	is accepted by the department.
495	(4)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
496	ORGANIZATIONS.--An eligible nonprofit scholarship-funding
497	organization participating in the scholarship program
498	established in this section shall have the following
499	obligations:
500	(a)  An eligible nonprofit scholarship-funding organization
501	shall provide corporate tax credit scholarships, from eligible
502	contributions, to qualified students for:
503	1.  Tuition or textbook expenses for, or transportation to,
504	an eligible private nonpublic school. At least 75 percent of
505	each the scholarship funding must be used to pay tuition
506	expenses; or
507	2.  Transportation expenses to a Florida public school that
508	is located outside the district in which the student resides or
509	to a lab school as defined in s. 1002.32.
510	(b)  An eligible nonprofit scholarship-funding organization
511	shall give priority to qualified students who received a
512	scholarship from an eligible nonprofit scholarship-funding
513	organization during the previous school year.
514	(c)  An eligible nonprofit scholarship-funding organization
515	shall not provide a scholarship to a student who is receiving an
516	opportunity scholarship pursuant to s. 1002.38 or a John M.
517	McKay Scholarship pursuant to s. 1002.39. In addition, an
518	eligible nonprofit scholarship-funding organization shall not
519	provide a scholarship to a student who is receiving a corporate
520	tax credit scholarship from another eligible nonprofit
521	scholarship-funding organization.
522	(d)(c)  The amount of a scholarship provided to any child
523	for any single school year by an all eligible nonprofit
524	scholarship-funding organization organizations from eligible
525	contributions shall not exceed the following annual limits:
526	1.  Three thousand five hundred dollars for a scholarship
527	awarded to a student enrolled in an eligible private nonpublic
528	school.
529	2.  Five hundred dollars for a scholarship awarded to a
530	student enrolled in a Florida public school that is located
531	outside the district in which the student resides or in a lab
532	school as defined in s. 1002.32.
533	(e)(d)  The amount of an eligible contribution which may be
534	accepted by an eligible nonprofit scholarship-funding
535	organization is limited to the amount needed to provide
536	scholarships for qualified students which the organization has
537	identified and for which vacancies in eligible private nonpublic
538	schools have been identified.
539	(f)(e)  An eligible nonprofit scholarship-funding
540	organization that receives an eligible contribution must spend
541	100 percent of the eligible contribution to provide scholarships
542	in the same state fiscal year in which the contribution was
543	received. No portion of eligible contributions may be used for
544	administrative expenses. All interest accrued from contributions
545	must be used for scholarships.
546	(g)  An eligible nonprofit scholarship-funding organization
547	must maintain separate accounts for scholarship funds and
548	operating funds.
549	(h)  An eligible nonprofit scholarship-funding organization
550	may transfer funds to another eligible nonprofit scholarship-
551	funding organization when additional funds are required to meet
552	scholarship demand. The scholarship-funding organization
553	transferring funds must request approval for the transfer from
554	the Department of Education and provide documentation to support
555	the transfer, including a listing of the scholarships to be
556	funded from the transfer. The Department of Education shall
557	verify the listing of students to receive scholarships from the
558	transfer. No funds may be transferred unless matching eligible
559	scholarship recipients can be identified by the scholarship-
560	funding organization receiving the transfer.
561	(i)(f)  An eligible nonprofit scholarship-funding
562	organization that receives eligible contributions must provide
563	to the Auditor General and the Department of Education an annual
564	financial and compliance audit of its accounts and records
565	conducted by an independent certified public accountant and in
566	accordance with rules adopted by the Auditor General. The audit
567	must be conducted in compliance with generally accepted auditing
568	standards and must include a report on financial statements
569	presented in accordance with Generally Accepted Accounting
570	Principles set forth by the American Institute of Certified
571	Public Accountants for not-for-profit organizations and a
572	determination of compliance with the statutory eligibility and
573	expenditure requirements set forth in this section. Audits must
574	be provided to the Auditor General and the Department of
575	Education within 180 days after completion of the nonprofit
576	scholarship-funding organization's fiscal year.
577	(j)(g)  An eligible nonprofit scholarship-funding
578	organization shall obtain verification from the private school
579	of a student's continued attendance at the school prior to each
580	scholarship payment. Payment of the scholarship shall be made by
581	the eligible nonprofit scholarship-funding organization no less
582	frequently than on a quarterly basis. Payment of the scholarship
583	by the eligible nonprofit scholarship-funding organization shall
584	be by individual warrant or check made payable to the student's
585	parent. If the parent chooses for his or her child to attend an
586	eligible private nonpublic school, the warrant or check must be
587	mailed by the eligible nonprofit scholarship-funding
588	organization to the private nonpublic school of the parent's
589	choice, and the parent shall restrictively endorse the warrant
590	or check to the private nonpublic school. An eligible nonprofit
591	scholarship-funding organization shall ensure that, upon receipt
592	of a scholarship warrant or check, the parent to whom the
593	warrant or check is made restrictively endorses the warrant or
594	check to the private nonpublic school of the parent's choice for
595	deposit into the account of the private nonpublic school.
596	(k)  An eligible nonprofit scholarship-funding organization
597	must prepare and submit quarterly reports to the Department of
598	Education pursuant to subsection (7). In addition, an eligible
599	nonprofit scholarship-funding organization must submit in a
600	timely manner any information requested by the Department of
601	Education relating to the scholarship program.
602	(l)  An eligible nonprofit scholarship-funding organization
603	must verify the income of all applicants participating in the
604	scholarship program each year with independent income
605	documentation.
606	(m)1.  An owner or operator of an eligible nonprofit
607	scholarship-funding organization must, within 5 days after
608	assuming ownership or decisionmaking authority, file with the
609	Department of Law Enforcement a complete set of fingerprints for
610	state processing for a criminal background check and the
611	Department of Law Enforcement shall in turn submit the
612	fingerprints to the Federal Bureau of Investigation for federal
613	processing for a background check. The costs of fingerprinting
614	and the background check shall not be borne by the state.
615	2.  The results of a criminal background check shall be
616	reported to the owner or operator of the eligible nonprofit
617	scholarship-funding organization and to the Department of
618	Education.
619	3.  A nonprofit scholarship-funding organization whose
620	owner or operator has been convicted of a crime involving moral
621	turpitude or a crime that bears upon the fitness of the owner or
622	operator to have responsibility for the safety and well-being of
623	children shall not be eligible to provide scholarships under
624	this section.
625	(n)  A nonprofit scholarship-funding organization whose
626	owner or operator in the last 7 years has filed for personal
627	bankruptcy or corporate bankruptcy in a corporation in which he
628	or she owned more than 20 percent of the corporation shall not
629	be eligible to provide scholarships under this section.
630	(o)  An owner or operator of an eligible nonprofit
631	scholarship-funding organization is prohibited from owning or
632	operating an eligible private school that is participating in
633	the scholarship program.
634	(p)  An eligible nonprofit scholarship-funding organization
635	shall report to the Department of Education any private school
636	that is not in compliance with the requirements of the
637	scholarship program. The eligible nonprofit scholarship-funding
638	organization shall not provide additional scholarship funds to a
639	parent for a student to attend the private school until a
640	determination is made by the Commissioner of Education that the
641	school is in compliance with the requirements of the scholarship
642	program.
643	(q)  An eligible nonprofit scholarship-funding organization
644	must comply with the antidiscrimination provisions of 42 U.S.C.
645	s. 2000d.
646	(r)  An eligible nonprofit scholarship-funding organization
647	shall allow a qualified student to attend any eligible private
648	school and shall allow a parent to transfer a scholarship during
649	a school year to any other eligible private school of the
650	parent's choice.
651	(s)  An eligible nonprofit scholarship-funding organization
652	must provide a scholarship to a qualified student on a first-
653	come, first-served basis unless the student qualifies for
654	priority pursuant to paragraph (b). An eligible nonprofit
655	scholarship-funding organization may not target scholarships to
656	a particular private school or provide scholarships to a child
657	of an owner or operator.
658	(5)  PARENT OBLIGATIONS OF PARENTS AND STUDENTS.--
659	(a)  As a condition for scholarship payment pursuant to
660	paragraph (4)(j)(g), if the parent chooses for his or her child
661	to attend an eligible private nonpublic school, the parent must
662	inform the child's school district within 15 days after such
663	decision.
664	(b)  Upon receipt of a scholarship warrant or check from
665	the eligible nonprofit scholarship-funding organization, the
666	parent to whom the warrant or check is made must restrictively
667	endorse the warrant or check to the private school for deposit
668	into the account of the private school. A private school may not
669	act as attorney in fact for parents of a scholarship student
670	under the authority of a power of attorney executed by such
671	parents or under any other authority allowing endorsement of
672	scholarship warrants on behalf of parents. If a parent refuses
673	to restrictively endorse a warrant to which a private school is
674	entitled, that student's scholarship shall be forfeited
675	immediately.
676	(c)  Any student participating in the scholarship program
677	must remain in attendance throughout the school year unless
678	excused by the school for illness or other good cause and must
679	comply fully with the school's code of conduct.
680	(d)  The parent of a student participating in the
681	scholarship program must comply fully with the private school's
682	parental involvement requirements unless excused by the school
683	for illness or other good cause.
684	(e)  The parent of a student participating in the
685	scholarship program must ensure that the student participates in
686	the nationally norm-referenced testing required by this section.
687	Students with disabilities for whom standardized testing is not
688	appropriate are exempt from this requirement.
689	(f)  A participant in the scholarship program who fails to
690	comply with this subsection forfeits the scholarship.
691	(6)  ELIGIBLE PRIVATE NONPUBLIC SCHOOL OBLIGATIONS.--An
692	eligible private nonpublic school must:
693	(a)  Demonstrate fiscal soundness by being in operation for
694	2 or more consecutive school years or obtain one school year or
695	provide the Department of Education with a statement by a
696	certified public accountant confirming that the nonpublic school
697	desiring to participate is insured and the owner or owners have
698	sufficient capital or credit to operate the school for the
699	upcoming year serving the number of students anticipated with
700	expected revenues from tuition and other sources that may be
701	reasonably expected. In lieu of such a statement, a surety bond
702	or letter of credit for the amount equal to the scholarship
703	funds for any quarter to may be filed with the Department of
704	Education. The surety bond or letter of credit shall serve to
705	secure expenditures of scholarship funds should such funds be
706	found to have been used for unlawful purposes. However, if
707	during the school year a private school exhibits financial
708	difficulty or is otherwise not in compliance with this section,
709	the Commissioner of Education may impose additional requirements
710	on the private school, which may include additional security
711	bonding.
712	(b)  Notify the Department of Education of its intent to
713	participate in the scholarship program. The notice must specify
714	the grade levels that the private school has available for
715	students participating in the scholarship program.
716	(c)(b)  Comply with the antidiscrimination provisions of 42
717	U.S.C. s. 2000d.
718	(d)(c)  Meet state and local health and safety laws and
719	codes, including, but not limited to, laws pertaining to:
720	1.  Fire safety.
721	2.  Building codes.
722	(e)(d)  Comply with all state laws relating to general
723	regulation of private nonpublic schools, including, but not
724	limited to, laws pertaining to:
725	1.  Annual private school survey required in s. 1002.42(2).
726	2.  Retention of records required in s. 1002.42(3).
727	3.  Attendance records and reports required in s.
728	1003.23(2).
729	4.  School-entry health examinations and immunizations
730	required in s. 1003.22.
731	5.  Attendance requirements prescribed in ss. 1003.01(13)
732	and 1003.21(1).
733	(f)  Employ or contract with teachers who hold
734	baccalaureate or higher degrees, have at least 3 years of
735	teaching experience in public or private schools, or have
736	special skills, knowledge, or expertise that qualifies them to
737	provide instruction in subjects taught.
738	(g)  Annually administer or make provision for students
739	participating in the scholarship program to take the Iowa Test
740	of Basic Skills, the Stanford-9, or subsequent versions of these
741	tests, or an assessment identified by the Department of
742	Education under subsection (7). A participating private school
743	must report a student's scores to the parent and to the
744	independent private research organization selected by the
745	Department of Education pursuant to subsection (7).
746	(h)  Within 60 days after employment, for any individual
747	with direct student contact with corporate tax credit
748	scholarship students, file with the Department of Law
749	Enforcement a complete set of fingerprints for state processing
750	for a criminal background check. The Department of Law
751	Enforcement shall in turn submit the fingerprints to the Federal
752	Bureau of Investigation for federal processing for a background
753	check. An "individual with direct student contact with corporate
754	tax credit scholarship students" means any individual who:
755	1.  Is employed by a private school in any capacity,
756	including an individual employed as a child care provider, a
757	teacher, or another member of school personnel, and who is
758	responsible for the provision of care, treatment, education,
759	training, instruction, supervision, or recreation of corporate
760	tax credit scholarship students;
761	2.  Is the owner or operator of the private school
762	accepting corporate tax credit scholarship students; or
763	3.  Has unsupervised access to a corporate tax credit
764	scholarship student for whom the private school is responsible.
765
766	The costs of fingerprinting and the background check shall not
767	be borne by the state. The results of a criminal background
768	check for private school owners shall be reported to the
769	Department of Education. The owner or operator of the private
770	school shall receive the results of a criminal background check
771	for all other persons subject to the private school background
772	check requirements and immediately report to the Department of
773	Education any individual with direct student contact with
774	corporate tax credit scholarship students who has failed the
775	Level 2 background check. Employment of such an individual shall
776	cause a private school to be ineligible for participation in the
777	scholarship program. An individual holding a valid Florida
778	teaching certificate who has been fingerprinted pursuant to s.
779	1012.32 shall not be required to comply with the provisions of
780	this paragraph.
781	(i)  Annually comply with the requirements of the
782	Department of Education to complete a notarized sworn compliance
783	statement certifying compliance with state laws pursuant to
784	subsection (7).
785	(j)  Notify the Department of Education and the eligible
786	nonprofit scholarship-funding organization if any participating
787	student is receiving a warrant or check from more than one
788	eligible nonprofit scholarship-funding organization.
789	(k)  Comply with all applicable state agency rules relating
790	to private schools.
791	(l)  Publish and report, as part of the annual database
792	survey form and notarized statement of compliance required
793	pursuant to s. 1002.42(2), to the Department of Education and
794	distribute to the scholarship applicants:
795	1.  Whether the private school is accredited by an in-state
796	or regional accrediting association that is validated by a
797	third-party accreditor at the state or national level which has
798	been in existence at least 3 years.
799	2.  The name of the accrediting association that accredits
800	the private school.
801	3.  Whether the private school is in the process of
802	receiving candidate status.
803
804	The inability of a private school to meet the requirements of
805	this subsection shall constitute a basis for the ineligibility
806	of the private school to participate in the scholarship program
807	as determined by the Department of Education.
808	(7)  DEPARTMENT OF EDUCATION, COMMISSIONER OF EDUCATION,
809	AND STATE BOARD OF EDUCATION OBLIGATIONS; RESPONSIBILITIES.--
810	(a)  The Department of Education shall:
811	1.  Annually submit to the Department of Revenue, by March
812	15, a list of eligible nonprofit scholarship-funding
813	organizations that meet the requirements of paragraph (2)(c).
814	2.  Annually verify the eligibility of nonprofit
815	scholarship-funding organizations that meet the requirements of
816	paragraph (2)(c).
817	3.  Annually verify the eligibility of private schools that
818	meet the requirements of paragraph (2)(d).
819	4.  Annually verify the eligibility of expenditures as
820	provided in subsection (4).
821	5.  Establish a toll-free hotline that provides parents,
822	private schools, and nonprofit scholarship-funding organizations
823	with information on participation in the scholarship program.
824	6.  Establish a process by which individuals may notify the
825	Department of Education of any violation by a private school or
826	nonprofit scholarship-funding organization of state laws
827	relating to scholarship program participation. The department
828	shall conduct an investigation of any written complaint of a
829	violation of this section if the complaint is signed by the
830	complainant and is legally sufficient. A complaint is legally
831	sufficient if it contains ultimate facts that show that a
832	violation of this section or any rule adopted by the State Board
833	of Education or other state agency has occurred. In order to
834	determine legal sufficiency, the Department of Education may
835	require supporting information or documentation from the
836	complainant. In addition, the department is authorized to
837	investigate anonymous complaints.
838	7.  Require annual completion of a notarized sworn
839	compliance statement by participating private schools certifying
840	compliance with state laws and retain such records.
841	8.  Identify all nationally norm-referenced tests that are
842	comparable to the norm-referenced test portions of the Florida
843	Comprehensive Assessment Test (FCAT).
844	9.  Select an independent private research organization to
845	which participating private schools must report the scores of
846	participating students on the assessments administered by the
847	private school under paragraph (6)(g). The independent private
848	research organization must annually report to the Department of
849	Education on the year-to-year improvements of the participating
850	students. The independent private research organization must
851	analyze and report student performance data, including student
852	scores by grade level, in a manner that protects the rights of
853	students and parents as mandated in 20 U.S.C. s. 1232g and must
854	not disaggregate data to a level that will disclose the academic
855	level of individuals or of individual schools. To the extent
856	possible, the independent private research organization must
857	accumulate historical performance data on students from the
858	Department of Education and private schools to describe baseline
859	performance and to conduct longitudinal studies. To minimize
860	costs and reduce time required for third-party analysis and
861	evaluation, the Department of Education shall conduct analyses
862	of matched students from public school assessment data and
863	calculate control group learning gains using an agreed upon
864	methodology outlined in the contract with the third-party
865	evaluator. The sharing of student data must be in accordance
866	with the Family Educational Rights and Privacy Act requirements
867	and shall be for the sole purpose of conducting the evaluation.
868	All parties must preserve the confidentiality of such
869	information.
870	10.  Provide a private school profile on-line for those
871	private schools participating in the scholarship program.
872	11.  Notify an eligible nonprofit scholarship-funding
873	organization of any of the organization's identified students
874	who are receiving an opportunity scholarship pursuant to s.
875	1002.38 or a John M. McKay Scholarship pursuant to s. 1002.39.
876	12.  Notify an eligible nonprofit scholarship-funding
877	organization of any of the organization's identified students
878	who are receiving a corporate tax credit scholarship from
879	another eligible nonprofit scholarship-funding organization.
880	13.  Require quarterly reports by an eligible nonprofit
881	scholarship-funding organization regarding the number of
882	students participating in the scholarship program, the private
883	schools at which the students are enrolled, and other
884	information deemed necessary by the Department of Education.
885	14.  Regularly cross-check the list of participating
886	scholarship students with the public school enrollment lists to
887	avoid duplication.
888	(b)  The Commissioner of Education shall revoke the
889	eligibility of a nonprofit scholarship-funding organization,
890	private school, or student to participate in the scholarship
891	program for noncompliance with this section.
892	(8)(7)  ADMINISTRATION; RULES.--
893	(a)  If the credit granted pursuant to this section is not
894	fully used in any one year because of insufficient tax liability
895	on the part of the corporation, the unused amount may be carried
896	forward for a period not to exceed 3 years; however, any
897	taxpayer that seeks to carry forward an unused amount of tax
898	credit must submit an application for allocation of tax credits
899	or carryforward credits as required in paragraph (d) in the year
900	that the taxpayer intends to use the carryforward. The total
901	amount of tax credits and carryforward of tax credits granted
902	each state fiscal year under this section is $88 million. This
903	carryforward applies to all approved contributions made after
904	January 1, 2002. A taxpayer may not convey, assign, or transfer
905	the credit authorized by this section to another entity unless
906	all of the assets of the taxpayer are conveyed, assigned, or
907	transferred in the same transaction.
908	(b)  An application for a tax credit pursuant to this
909	section shall be submitted to the department on forms
910	established by rule of the department.
911	(c)  The department and the Department of Education shall
912	develop a cooperative agreement to assist in the administration
913	of this section. The Department of Education shall be
914	responsible for annually submitting, by March 15, to the
915	department a list of eligible nonprofit scholarship-funding
916	organizations that meet the requirements of paragraph (2)(d) and
917	for monitoring eligibility of nonprofit scholarship-funding
918	organizations that meet the requirements of paragraph (2)(d),
919	eligibility of nonpublic schools that meet the requirements of
920	paragraph (2)(c), and eligibility of expenditures under this
921	section as provided in subsection (4).
922	(d)  The department shall adopt rules necessary to
923	administer this section, including rules establishing
924	application forms and procedures and governing the allocation of
925	tax credits and carryforward credits under this section on a
926	first-come, first-served basis.
927	(e)  The State Board Department of Education shall adopt
928	rules pursuant to ss. 120.536(1) and 120.54 to administer this
929	section, including, but not limited to, rules:
930	1.  Determining necessary to determine eligibility of
931	nonprofit scholarship-funding organizations and private schools.
932	2.  Identifying as defined in paragraph (2)(d) and
933	according to the provisions of subsection (4) and identify
934	qualified students as defined in paragraph (2)(e).
935	3.  Identifying the documentation required to establish
936	eligibility for nonprofit scholarship-funding organizations.
937	4.  Requiring an annual notarized sworn statement of
938	compliance for private schools that participate in the
939	scholarship program.
940	5.  Identifying the independent income-verification
941	documentation required to establish student eligibility under
942	this section.
943	(f)  Subsequent to each scholarship payment, the Department
944	of Financial Services shall randomly review endorsed warrants to
945	confirm compliance with endorsement requirements.
946	(g)  The State Board of Education may delegate its
947	authority under this section to the Commissioner of Education
948	with the exception of rulemaking authority.
949	(9)(8)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible
950	contributions received by an eligible nonprofit scholarship-
951	funding organization shall be deposited in a manner consistent
952	with s. 17.57(2).
953	Section 3.  This act shall take effect upon becoming a law.
954
955	================= T I T L E  A M E N D M E N T =================
956	Remove the entire title and insert:
957	A bill to be entitled
958	An act relating to scholarship program accountability;
959	amending s. 1002.39, F.S., relating to the John M. McKay
960	Scholarships for Students with Disabilities Program;
961	revising definition of the term "students with
962	disabilities"; restricting eligibility to receive a John
963	M. McKay Scholarship; revising and adding school district
964	and Department of Education obligations; providing for
965	department investigation of private school violations;
966	revising requirements for private school fiscal soundness;
967	revising eligibility requirements for private schools,
968	including compliance with specified laws and requirements
969	of the department, annual assessment of students, and
970	maintenance of a physical location in the state; requiring
971	fingerprinting and criminal background checks; requiring
972	annual completion of a notarized sworn compliance
973	statement; prohibiting certain types of educational
974	programs; prohibiting power of attorney for endorsing
975	scholarship checks; requiring annual registration with the
976	department; revising provisions relating to scholarship
977	payment; providing for Department of Financial Services
978	obligations; providing Commissioner of Education authority
979	to suspend or prohibit program participation; requiring
980	the adoption of specified rules; amending s. 220.187,
981	F.S., relating to credits for contributions to nonprofit
982	scholarship-funding organizations; revising definition of
983	the terms "eligible nonprofit scholarship-funding
984	organization" and "qualified student"; defining the terms
985	"eligible private school" and "owner or operator";
986	reducing small business tax credit reservation; providing
987	for rescindment of tax credit allocation; revising
988	obligations of eligible nonprofit scholarship-funding
989	organizations; authorizing scholarships for certain
990	transportation expenses; providing restrictions on
991	provision of a scholarship; requiring a separate account
992	for scholarship funds; authorizing transfer of funds
993	between scholarship-funding organizations; specifying
994	audit requirements; requiring quarterly scholarship
995	payments and reports; requiring income verification;
996	requiring fingerprinting and criminal background checks;
997	providing restrictions on scholarship-funding organization
998	ownership or operation; providing for reporting of
999	noncompliant private schools; providing parent and student
1000	obligations; prohibiting power of attorney for endorsing
1001	scholarship checks; revising requirements for private
1002	school fiscal soundness; providing additional private
1003	school obligations, including compliance with specified
1004	laws, employment of qualified teachers, and provision of
1005	student testing; requiring fingerprinting and criminal
1006	background checks; requiring annual completion of a
1007	notarized sworn compliance statement; providing Department
1008	of Education and Commissioner of Education obligations and
1009	responsibilities, including verification of eligibility of
1010	program participants, investigation of violations,
1011	selection of a research organization to analyze student
1012	performance data, and revocation of eligibility to
1013	participate in the scholarship program; requiring adoption
1014	of specified rules; providing for Department of Financial
1015	Services obligations; providing an effective date.

CODING: Words stricken are deletions; words underlined are additions.