Senate Bill sb2380
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    Florida Senate - 2007                                  SB 2380
    By Senator Webster
    9-1295-07
  1                      A bill to be entitled
  2         An act relating to education; creating s.
  3         1008.3455, F.S.; expressing the intent of the
  4         Legislature to create a program to enhance
  5         failing schools; requiring the Commissioner of
  6         Education to develop and submit such a program
  7         to the Legislature; prescribing elements of the
  8         program; requiring the creation of an advisory
  9         committee; requiring consultation with
10         specified entities; requiring an annual report;
11         amending s. 220.187, F.S.; clarifying that the
12         tax credit program applies to students in
13         families having limited financial resources;
14         providing scholarship eligibility to students
15         receiving opportunity scholarships during the
16         2006-2007 school year for a limited amount of
17         time; providing that a scholarship funding
18         organization may be approved to provide
19         scholarships under two tax credit programs;
20         requiring separate accounting; authorizing
21         scholarship funding organizations to transfer
22         surplus funds between two programs under
23         specified circumstances; creating s. 220.1875,
24         F.S.; providing a purpose; defining terms;
25         prescribing obligations of school districts to
26         inform parents about failing schools;
27         authorizing students at such schools to attend
28         a high-performing school in the same district;
29         providing a credit against the corporate income
30         tax for contributions to nonprofit
31         scholarship-funding organizations; providing
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    Florida Senate - 2007                                  SB 2380
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 1         limitations; providing for use of such
 2         contributions for scholarships for students
 3         attending certain failing schools to attend
 4         nonpublic schools or public schools in adjacent
 5         districts; providing requirements and
 6         limitations with respect to scholarships;
 7         providing for payment; establishing eligibility
 8         for nonpublic school participation; providing
 9         for administration by the Department of Revenue
10         and the Department of Education; providing for
11         rules; providing requirements for deposit of
12         eligible contributions; amending s. 213.053,
13         F.S.; conforming provisions to the creation of
14         the tax credit scholarship program for families
15         of students in failing schools; authorizing the
16         Department of Revenue to share certain tax
17         information with the Department of Education;
18         amending s. 220.02, F.S.; revising legislative
19         intent with respect to the order in which
20         corporate income tax credits are applied to
21         conform to the creation of the tax credit
22         scholarship program for families of students in
23         failing schools; amending s. 220.13, F.S.;
24         redefining the term "adjusted federal income"
25         to account for the creation of the tax credit
26         scholarship program for families of students in
27         failing schools; providing for the credit to be
28         an addition to taxable income; amending s.
29         220.701, F.S.; directing the Department of
30         Revenue to deposit moneys received through the
31         corporate income tax into the Corporate Income
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    Florida Senate - 2007                                  SB 2380
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 1         Tax Trust Fund rather than the General Revenue
 2         Fund; providing for unencumbered trust fund
 3         balances to be transferred into the General
 4         Revenue Fund; prescribing how transferred funds
 5         may be expended; amending s. 1001.10, F.S.;
 6         conforming provisions to the repeal of the
 7         Opportunity Scholarship Program; authorizing
 8         the Commissioner of Education to prepare and
 9         publish reports related to specified tax credit
10         programs; amending ss. 1001.42 and 1002.20,
11         F.S.; conforming provisions to the repeal of
12         the Opportunity Scholarship Program and the
13         creation of the tax credit program for families
14         of students attending schools failing to make
15         adequate progress; repealing s. 1002.38, F.S.,
16         which authorizes the Opportunity Scholarship
17         Program; amending s. 1002.39, F.S., to conform
18         to the repeal of the Opportunity Scholarship
19         Program; providing an effective date.
20  
21         WHEREAS, education is a fundamental value and a
22  paramount duty of the state, and
23         WHEREAS, the State Constitution requires the state to
24  provide for the free education of all children residing within
25  its borders, and
26         WHEREAS, the Florida Supreme Court held in Bush v.
27  Holmes, 2006 WL 20584 (Fla.), 31 Fla. L. Weekly S1, that the
28  state must provide a system of uniform, efficient, safe,
29  secure, and high-quality public schools to fulfill this
30  constitutional requirement, and
31  
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    Florida Senate - 2007                                  SB 2380
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 1         WHEREAS, the Florida Supreme Court invalidated the
 2  Opportunity Scholarship Program because it allowed state funds
 3  to be disbursed to private schools, and
 4         WHEREAS, the Legislature created the Opportunity
 5  Scholarship Program to ensure that all children have a chance
 6  to gain the knowledge and skills they need to succeed, and
 7         WHEREAS, the state is committed to improving the
 8  quality of the education provided by the public school system,
 9  and
10         WHEREAS, there are some public schools that continue to
11  fail to make adequate progress based on the school performance
12  grading categories established by law, and
13         WHEREAS, respecting the constitutional mandate cited by
14  the Florida Supreme Court, the Legislature intends for the
15  state to develop and implement a comprehensive strategic
16  program to facilitate the improvement of schools that are
17  failing to make adequate progress, and
18         WHEREAS, facilitating the improvement in the
19  performance of these schools is a multiyear endeavor, and
20  progress will occur over an extended period of time, and
21         WHEREAS, students assigned to schools that are failing
22  to make adequate progress should have the choice of attending
23  a higher-performing school while the state continues to
24  facilitate the improvement of these schools, and
25         WHEREAS, the Legislature intends to create a program to
26  provide an educational safety net to students assigned to
27  these schools, distinct from and without impeding the efforts
28  to help these schools improve, NOW, THEREFORE,
29  
30  Be It Enacted by the Legislature of the State of Florida:
31  
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 1         Section 1.  Section 1008.3455, Florida Statutes, is
 2  created to read:
 3         1008.3455  Improvement program for schools failing to
 4  make adequate progress.--
 5         (1)  It is the intent of the Legislature that the state
 6  develop and implement a comprehensive strategic program to
 7  facilitate the improvement of schools that are failing to make
 8  adequate progress based on the school performance grading
 9  categories established by law. The Legislature finds that
10  achieving meaningful and lasting progress in these schools
11  will take a number of years. Thus, it is the further intent of
12  the Legislature that the program developed under this section
13  include a multiyear design and implementation schedule, with
14  measurable goals and objectives for these schools.
15         (2)  In coordination with the responsibilities
16  prescribed in s. 1008.345, the Commissioner of Education shall
17  develop and submit to the President of the Senate and the
18  Speaker of the House of Representatives, no later than
19  February 1, 2008, a multifaceted program of policies and
20  practices targeted specifically toward schools in the "F"
21  grade category under s. 1008.34.
22         (a)  At a minimum, the program must include an
23  assessment of the extent to which new policies, or
24  enhancements to existing policies, in the following areas
25  would facilitate improvement at these schools:
26         1.  Capital improvements to school facilities;
27         2.  Salaries for teachers and staff;
28         3.  Incentives for outstanding faculty and staff to
29  transfer to these schools;
30         4.  Equipment and supplies;
31         5.  Technology infrastructure, hardware, or software;
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 1         6.  Incentives to encourage parental or other family
 2  participation; and
 3         7.  Mentoring and other community participation.
 4         (b)  The program must include a suggested order of
 5  priority and timeline for enacting, funding, and implementing
 6  policies and practices over a 5-year period.  The program
 7  shall identify those elements of the program which can be
 8  accomplished within existing statutory authority and those
 9  elements that will require new statutory authority.  The
10  program must include specific recommendations for action by
11  the Legislature.
12         (3)(a)  To assist in development and implementation of
13  the program required by this section, the commissioner shall
14  create an advisory committee comprised of at least two
15  teachers, two staff persons, and two parents of students from
16  one or more schools that are failing to make adequate progress
17  based on the school performance grading categories, as well as
18  any other individuals the commissioner deems appropriate.
19         (b)  In developing and implementing the program, the
20  commissioner shall consult with:
21         1.    The Office of Program Policy Analysis and
22  Government Accountability; and
23         2.  The district community assessment teams assigned
24  under s. 1008.345.
25         (4)  The program shall be developed in coordination
26  with, and shall be consistent with, other strategic planning
27  initiatives of the Department of Education or the State Board
28  of Education.
29         (5)  The commissioner shall report annually to the
30  Governor, the President of the Senate, and the Speaker of the
31  House of Representatives on implementation of the program.
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    Florida Senate - 2007                                  SB 2380
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 1         Section 2.  Section 220.187, Florida Statutes, is
 2  amended to read:
 3         220.187  Credits for contributions to nonprofit
 4  scholarship-funding organizations; families that have limited
 5  financial resources.--
 6         (1)  PURPOSE.--The purpose of this section is to:
 7         (a)  Encourage private, voluntary contributions to
 8  nonprofit scholarship-funding organizations.
 9         (b)  Expand educational opportunities for children of
10  families that have limited financial resources.
11         (c)  Enable children in this state to achieve a greater
12  level of excellence in their education.
13         (2)  DEFINITIONS.--As used in this section, the term:
14         (a)  "Department" means the Department of Revenue.
15         (b)  "Eligible contribution" means a monetary
16  contribution from a taxpayer, subject to the restrictions
17  provided in this section, to an eligible nonprofit
18  scholarship-funding organization. The taxpayer making the
19  contribution may not designate a specific child as the
20  beneficiary of the contribution.
21         (c)  "Eligible nonprofit scholarship-funding
22  organization" means a charitable organization that:
23         1.  Is exempt from federal income tax pursuant to s.
24  501(c)(3) of the Internal Revenue Code;
25         2.  Is a Florida entity formed under chapter 607,
26  chapter 608, or chapter 617 and whose principal office is
27  located in the state; and
28         3.  Complies with the provisions of subsection (6).
29  
30  An eligible nonprofit scholarship-funding organization that is
31  authorized to provide scholarships under s. 220.1875 may,
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    Florida Senate - 2007                                  SB 2380
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 1  subject to approval by the Department of Education, be
 2  authorized to provide scholarships under this section.
 3         (d)  "Eligible private school" means a private school,
 4  as defined in s. 1002.01(2), located in Florida which offers
 5  an education to students in any grades K-12 and that meets the
 6  requirements in subsection (8).
 7         (e)  "Owner or operator" includes:
 8         1.  An owner, president, officer, or director of an
 9  eligible nonprofit scholarship-funding organization or a
10  person with equivalent decisionmaking authority over an
11  eligible nonprofit scholarship-funding organization.
12         2.  An owner, operator, superintendent, or principal of
13  an eligible private school or a person with equivalent
14  decisionmaking authority over an eligible private school.
15         (3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
16  Income Tax Credit Scholarship Program is established. A
17  student is eligible for a corporate income tax credit
18  scholarship if the student qualifies for free or reduced-price
19  school lunches under the National School Lunch Act and:
20         (a)  Was counted as a full-time equivalent student
21  during the previous state fiscal year for purposes of state
22  per-student funding;
23         (b)  Received a scholarship from an eligible nonprofit
24  scholarship-funding organization or from the State of Florida
25  during the previous school year; or
26         (c)  Is eligible to enter kindergarten or first grade.
27  
28  Contingent upon available funds, a student may continue in the
29  scholarship program as long as the student's family income
30  level does not exceed 200 percent of the federal poverty
31  level.
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 1         (4)  SCHOLARSHIP PROHIBITIONS.--A student is not
 2  eligible for a scholarship while he or she is:
 3         (a)  Enrolled in a school operating for the purpose of
 4  providing educational services to youth in Department of
 5  Juvenile Justice commitment programs;
 6         (b)  Receiving a scholarship from another eligible
 7  nonprofit scholarship-funding organization under this section;
 8         (c)  Receiving an educational scholarship pursuant to
 9  chapter 1002;
10         (d)  Participating in a home education program as
11  defined in s. 1002.01(1);
12         (e)  Participating in a private tutoring program
13  pursuant to s. 1002.43;
14         (f)  Participating in a virtual school, correspondence
15  school, or distance learning program that receives state
16  funding pursuant to the student's participation unless the
17  participation is limited to no more than two courses per
18  school year; or
19         (g)  Enrolled in the Florida School for the Deaf and
20  the Blind.
21         (5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
22  CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
23         (a)  There is allowed a credit of 100 percent of an
24  eligible contribution against any tax due for a taxable year
25  under this chapter. However, such a credit may not exceed 75
26  percent of the tax due under this chapter for the taxable
27  year, after the application of any other allowable credits by
28  the taxpayer. The credit granted by this section shall be
29  reduced by the difference between the amount of federal
30  corporate income tax taking into account the credit granted by
31  
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 1  this section and the amount of federal corporate income tax
 2  without application of the credit granted by this section.
 3         (b)  The total amount of tax credits and carryforward
 4  of tax credits which may be granted each state fiscal year
 5  under this section is $88 million. At least 1 percent of the
 6  total statewide amount authorized for the tax credit shall be
 7  reserved for taxpayers who meet the definition of a small
 8  business provided in s. 288.703(1) at the time of application.
 9         (c)  A taxpayer who files a Florida consolidated return
10  as a member of an affiliated group pursuant to s. 220.131(1)
11  may be allowed the credit on a consolidated return basis;
12  however, the total credit taken by the affiliated group is
13  subject to the limitation established under paragraph (a).
14         (d)  Effective for tax years beginning January 1, 2006,
15  a taxpayer may rescind all or part of its allocated tax credit
16  under this section. The amount rescinded shall become
17  available for purposes of the cap for that state fiscal year
18  under this section to an eligible taxpayer as approved by the
19  department if the taxpayer receives notice from the department
20  that the rescindment has been accepted by the department and
21  the taxpayer has not previously rescinded any or all of its
22  tax credit allocation under this section more than once in the
23  previous 3 tax years. Any amount rescinded under this
24  paragraph shall become available to an eligible taxpayer on a
25  first-come, first-served basis based on tax credit
26  applications received after the date the rescindment is
27  accepted by the department.
28         (6)  OBLIGATIONS OF ELIGIBLE NONPROFIT
29  SCHOLARSHIP-FUNDING ORGANIZATIONS.--An eligible nonprofit
30  scholarship-funding organization:
31  
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 1         (a)  Must comply with the antidiscrimination provisions
 2  of 42 U.S.C. s. 2000d.
 3         (b)  Must comply with the following background check
 4  requirements:
 5         1.  All owners and operators as defined in subparagraph
 6  (2)(e)1. are, upon employment or engagement to provide
 7  services, subject to level 2 background screening as provided
 8  under chapter 435. The fingerprints for the background
 9  screening must be electronically submitted to the Department
10  of Law Enforcement and can be taken by an authorized law
11  enforcement agency or by an employee of the eligible nonprofit
12  scholarship-funding organization or a private company who is
13  trained to take fingerprints. However, the complete set of
14  fingerprints of an owner or operator may not be taken by the
15  owner or operator. The results of the state and national
16  criminal history check shall be provided to the Department of
17  Education for screening under chapter 435. The cost of the
18  background screening may be borne by the eligible nonprofit
19  scholarship-funding organization or the owner or operator.
20         2.  Every 5 years following employment or engagement to
21  provide services or association with an eligible nonprofit
22  scholarship-funding organization, each owner or operator must
23  meet level 2 screening standards as described in s. 435.04, at
24  which time the nonprofit scholarship-funding organization
25  shall request the Department of Law Enforcement to forward the
26  fingerprints to the Federal Bureau of Investigation for level
27  2 screening. If the fingerprints of an owner or operator are
28  not retained by the Department of Law Enforcement under
29  subparagraph 3., the owner or operator must electronically
30  file a complete set of fingerprints with the Department of Law
31  Enforcement. Upon submission of fingerprints for this purpose,
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 1  the eligible nonprofit scholarship-funding organization shall
 2  request that the Department of Law Enforcement forward the
 3  fingerprints to the Federal Bureau of Investigation for level
 4  2 screening, and the fingerprints shall be retained by the
 5  Department of Law Enforcement under subparagraph 3.
 6         3.  Beginning July 1, 2007, all fingerprints submitted
 7  to the Department of Law Enforcement as required by this
 8  paragraph must be retained by the Department of Law
 9  Enforcement in a manner approved by rule and entered in the
10  statewide automated fingerprint identification system
11  authorized by s. 943.05(2)(b). The fingerprints must
12  thereafter be available for all purposes and uses authorized
13  for arrest fingerprint cards entered in the statewide
14  automated fingerprint identification system pursuant to s.
15  943.051.
16         4.  Beginning July 1, 2007, the Department of Law
17  Enforcement shall search all arrest fingerprint cards received
18  under s. 943.051 against the fingerprints retained in the
19  statewide automated fingerprint identification system under
20  subparagraph 3. Any arrest record that is identified with an
21  owner's or operator's fingerprints must be reported to the
22  Department of Education. The Department of Education shall
23  participate in this search process by paying an annual fee to
24  the Department of Law Enforcement and by informing the
25  Department of Law Enforcement of any change in the employment,
26  engagement, or association status of the owners or operators
27  whose fingerprints are retained under subparagraph 3. The
28  Department of Law Enforcement shall adopt a rule setting the
29  amount of the annual fee to be imposed upon the Department of
30  Education for performing these services and establishing the
31  procedures for the retention of owner and operator
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 1  fingerprints and the dissemination of search results. The fee
 2  may be borne by the owner or operator of the nonprofit
 3  scholarship-funding organization.
 4         5.  A nonprofit scholarship-funding organization whose
 5  owner or operator fails the level 2 background screening shall
 6  not be eligible to provide scholarships under this section.
 7         6.  A nonprofit scholarship-funding organization whose
 8  owner or operator in the last 7 years has filed for personal
 9  bankruptcy or corporate bankruptcy in a corporation of which
10  he or she owned more than 20 percent shall not be eligible to
11  provide scholarships under this section.
12         (c)  Must not have an owner or operator who owns or
13  operates an eligible private school that is participating in
14  the scholarship program.
15         (d)  Must provide scholarships, from eligible
16  contributions, to eligible students for:
17         1.  Tuition or textbook expenses for, or transportation
18  to, an eligible private school. At least 75 percent of the
19  scholarship funding must be used to pay tuition expenses; or
20         2.  Transportation expenses to a Florida public school
21  that is located outside the district in which the student
22  resides or to a lab school as defined in s. 1002.32.
23         (e)  Must give priority to eligible students who
24  received a scholarship from an eligible nonprofit
25  scholarship-funding organization or from the State of Florida
26  during the previous school year or who received an opportunity
27  scholarship under former s. 1002.38 during the final quarter
28  of the 2006-2007 school year.
29         (f)  Must provide a scholarship to an eligible student
30  on a first-come, first-served basis unless the student
31  qualifies for priority pursuant to paragraph (e).
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 1         (g)  May not restrict or reserve scholarships for use
 2  at a particular private school or provide scholarships to a
 3  child of an owner or operator.
 4         (h)  Must allow an eligible student to attend any
 5  eligible private school and must allow a parent to transfer a
 6  scholarship during a school year to any other eligible private
 7  school of the parent's choice.
 8         (i)  Must obligate, in the same fiscal year in which
 9  the contribution was received, 100 percent of the eligible
10  contribution to provide annual or partial-year scholarships;
11  however, up to 25 percent of the total contribution may be
12  carried forward for expenditure in the following state fiscal
13  year. A scholarship-funding organization must, before granting
14  a scholarship for an academic year, document each scholarship
15  student's eligibility for that academic year. A
16  scholarship-funding organization may not grant multiyear
17  scholarships in one approval process. No portion of eligible
18  contributions may be used for administrative expenses. All
19  interest accrued from contributions must be used for
20  scholarships.
21         (j)  Must maintain separate accounts for scholarship
22  funds and operating funds.
23         (k)  With the prior approval of the Department of
24  Education, may transfer funds to another eligible nonprofit
25  scholarship-funding organization if additional funds are
26  required to meet scholarship demand at the receiving nonprofit
27  scholarship-funding organization. A transfer shall be limited
28  to the greater of $500,000 or 20 percent of the total
29  contributions received by the nonprofit scholarship-funding
30  organization making the transfer. All transferred funds must
31  be deposited by the receiving nonprofit scholarship-funding
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 1  organization into its scholarship accounts. All transferred
 2  amounts received by any nonprofit scholarship-funding
 3  organization must be separately disclosed in the annual
 4  financial and compliance audit required in this section.
 5         (l)  Must provide to the Auditor General and the
 6  Department of Education an annual financial and compliance
 7  audit of its accounts and records conducted by an independent
 8  certified public accountant and in accordance with rules
 9  adopted by the Auditor General. The audit must be conducted in
10  compliance with generally accepted auditing standards and must
11  include a report on financial statements presented in
12  accordance with generally accepted accounting principles set
13  forth by the American Institute of Certified Public
14  Accountants for not-for-profit organizations and a
15  determination of compliance with the statutory eligibility and
16  expenditure requirements set forth in this section. Audits
17  must be provided to the Auditor General and the Department of
18  Education within 180 days after completion of the eligible
19  nonprofit scholarship-funding organization's fiscal year.
20         (m)  Must prepare and submit quarterly reports to the
21  Department of Education pursuant to paragraph (9)(m). In
22  addition, an eligible nonprofit scholarship-funding
23  organization must submit in a timely manner any information
24  requested by the Department of Education relating to the
25  scholarship program.
26  
27  Any and all information and documentation provided to the
28  Department of Education and the Auditor General relating to
29  the identity of a taxpayer that provides an eligible
30  contribution under this section shall remain confidential at
31  all times in accordance with s. 213.053.
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 1         (7)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 2  PARTICIPATION.--
 3         (a)  The parent must select an eligible private school
 4  and apply for the admission of his or her child.
 5         (b)  The parent must inform the child's school district
 6  when the parent withdraws his or her child to attend an
 7  eligible private school.
 8         (c)  Any student participating in the scholarship
 9  program must remain in attendance throughout the school year
10  unless excused by the school for illness or other good cause.
11         (d)  Each parent and each student has an obligation to
12  the private school to comply with the private school's
13  published policies.
14         (e)  The parent shall ensure that the student
15  participating in the scholarship program takes the
16  norm-referenced assessment offered by the private school. The
17  parent may also choose to have the student participate in the
18  statewide assessments pursuant to s. 1008.22. If the parent
19  requests that the student participating in the scholarship
20  program take statewide assessments pursuant to s. 1008.22, the
21  parent is responsible for transporting the student to the
22  assessment site designated by the school district.
23         (f)  Upon receipt of a scholarship warrant from the
24  eligible nonprofit scholarship-funding organization, the
25  parent to whom the warrant is made must restrictively endorse
26  the warrant to the private school for deposit into the account
27  of the private school. The parent may not designate any entity
28  or individual associated with the participating private school
29  as the parent's attorney in fact to endorse a scholarship
30  warrant. A participant who fails to comply with this paragraph
31  forfeits the scholarship.
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 1         (8)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--An
 2  eligible private school may be sectarian or nonsectarian and
 3  must:
 4         (a)  Comply with all requirements for private schools
 5  participating in state school choice scholarship programs
 6  pursuant to s. 1002.421.
 7         (b)  Provide to the eligible nonprofit
 8  scholarship-funding organization, upon request, all
 9  documentation required for the student's participation,
10  including the private school's and student's fee schedules.
11         (c)  Be academically accountable to the parent for
12  meeting the educational needs of the student by:
13         1.  At a minimum, annually providing to the parent a
14  written explanation of the student's progress.
15         2.  Annually administering or making provision for
16  students participating in the scholarship program to take one
17  of the nationally norm-referenced tests identified by the
18  Department of Education. Students with disabilities for whom
19  standardized testing is not appropriate are exempt from this
20  requirement. A participating private school must report a
21  student's scores to the parent and to the independent research
22  organization selected by the Department of Education as
23  described in paragraph (9)(j).
24         3.  Cooperating with the scholarship student whose
25  parent chooses to participate in the statewide assessments
26  pursuant to s. 1008.32.
27         (d)  Employ or contract with teachers who have regular
28  and direct contact with each student receiving a scholarship
29  under this section at the school's physical location.
30  
31  
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 1  The inability of a private school to meet the requirements of
 2  this subsection shall constitute a basis for the ineligibility
 3  of the private school to participate in the scholarship
 4  program as determined by the Department of Education.
 5         (9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The
 6  Department of Education shall:
 7         (a)  Annually submit to the department, by March 15, a
 8  list of eligible nonprofit scholarship-funding organizations
 9  that meet the requirements of paragraph (2)(c).
10         (b)  Annually verify the eligibility of nonprofit
11  scholarship-funding organizations that meet the requirements
12  of paragraph (2)(c).
13         (c)  Annually verify the eligibility of private schools
14  that meet the requirements of subsection (8).
15         (d)  Annually verify the eligibility of expenditures as
16  provided in paragraph (6)(d) using the audit required by
17  paragraph (6)(l).
18         (e)  Establish a toll-free hotline that provides
19  parents and private schools with information on participation
20  in the scholarship program.
21         (f)  Establish a process by which individuals may
22  notify the Department of Education of any violation by a
23  parent, private school, or school district of state laws
24  relating to program participation. The Department of Education
25  shall conduct an inquiry of any written complaint of a
26  violation of this section, or make a referral to the
27  appropriate agency for an investigation, if the complaint is
28  signed by the complainant and is legally sufficient. A
29  complaint is legally sufficient if it contains ultimate facts
30  that show that a violation of this section or any rule adopted
31  by the State Board of Education has occurred. In order to
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 1  determine legal sufficiency, the Department of Education may
 2  require supporting information or documentation from the
 3  complainant. A department inquiry is not subject to the
 4  requirements of chapter 120.
 5         (g)  Require an annual, notarized, sworn compliance
 6  statement by participating private schools certifying
 7  compliance with state laws and shall retain such records.
 8         (h)  Cross-check the list of participating scholarship
 9  students with the public school enrollment lists to avoid
10  duplication.
11         (i)  In accordance with State Board of Education rule,
12  identify and select the nationally norm-referenced tests that
13  are comparable to the norm-referenced provisions of the
14  Florida Comprehensive Assessment Test (FCAT) provided that the
15  FCAT may be one of the tests selected. However, the Department
16  of Education may approve the use of an additional assessment
17  by the school if the assessment meets industry standards of
18  quality and comparability.
19         (j)  Select an independent research organization, which
20  may be a public or private entity or university, to which
21  participating private schools must report the scores of
22  participating students on the nationally norm-referenced tests
23  administered by the private school. The independent research
24  organization must annually report to the Department of
25  Education on the year-to-year improvements of participating
26  students. The independent research organization must analyze
27  and report student performance data in a manner that protects
28  the rights of students and parents as mandated in 20 U.S.C. s.
29  1232g, the Family Educational Rights and Privacy Act, and must
30  not disaggregate data to a level that will disclose the
31  academic level of individual students or of individual
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 1  schools. To the extent possible, the independent research
 2  organization must accumulate historical performance data on
 3  students from the Department of Education and private schools
 4  to describe baseline performance and to conduct longitudinal
 5  studies. To minimize costs and reduce time required for
 6  third-party analysis and evaluation, the Department of
 7  Education shall conduct analyses of matched students from
 8  public school assessment data and calculate control group
 9  learning gains using an agreed-upon methodology outlined in
10  the contract with the third-party evaluator. The sharing of
11  student data must be in accordance with requirements of 20
12  U.S.C. s. 1232g, the Family Educational Rights and Privacy
13  Act, and shall be for the sole purpose of conducting the
14  evaluation. All parties must preserve the confidentiality of
15  such information as required by law.
16         (k)  Notify an eligible nonprofit scholarship-funding
17  organization of any of the organization's identified students
18  who are receiving educational scholarships pursuant to chapter
19  1002.
20         (l)  Notify an eligible nonprofit scholarship-funding
21  organization of any of the organization's identified students
22  who are receiving corporate income tax credit scholarships
23  from other eligible nonprofit scholarship-funding
24  organizations.
25         (m)  Require quarterly reports by an eligible nonprofit
26  scholarship-funding organization regarding the number of
27  students participating in the scholarship program, the private
28  schools at which the students are enrolled, and other
29  information deemed necessary by the Department of Education.
30         (n)1.  Conduct random site visits to private schools
31  participating in the Corporate Tax Credit Scholarship Program.
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 1  The purpose of the site visits is solely to verify the
 2  information reported by the schools concerning the enrollment
 3  and attendance of students, the credentials of teachers,
 4  background screening of teachers, and teachers' fingerprinting
 5  results. The Department of Education may not make more than
 6  seven random site visits each year and may not make more than
 7  one random site visit each year to the same private school.
 8         2.  Annually, by December 15, report to the Governor,
 9  the President of the Senate, and the Speaker of the House of
10  Representatives the Department of Education's actions with
11  respect to implementing accountability in the scholarship
12  program under this section and s. 1002.421, any substantiated
13  allegations or violations of law or rule by an eligible
14  private school under this program concerning the enrollment
15  and attendance of students, the credentials of teachers,
16  background screening of teachers, and teachers' fingerprinting
17  results and the corrective action taken by the Department of
18  Education.
19         (10)  COMMISSIONER OF EDUCATION AUTHORITY AND
20  OBLIGATIONS.--
21         (a)  The Commissioner of Education shall deny, suspend,
22  or revoke a private school's participation in the scholarship
23  program if it is determined that the private school has failed
24  to comply with the provisions of this section. However, in
25  instances in which the noncompliance is correctable within a
26  reasonable amount of time and in which the health, safety, or
27  welfare of the students is not threatened, the commissioner
28  may issue a notice of noncompliance that shall provide the
29  private school with a timeframe within which to provide
30  evidence of compliance prior to taking action to suspend or
31  
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 1  revoke the private school's participation in the scholarship
 2  program.
 3         (b)  The commissioner's determination is subject to the
 4  following:
 5         1.  If the commissioner intends to deny, suspend, or
 6  revoke a private school's participation in the scholarship
 7  program, the Department of Education shall notify the private
 8  school of such proposed action in writing by certified mail
 9  and regular mail to the private school's address of record
10  with the Department of Education. The notification shall
11  include the reasons for the proposed action and notice of the
12  timelines and procedures set forth in this paragraph.
13         2.  The private school that is adversely affected by
14  the proposed action shall have 15 days from receipt of the
15  notice of proposed action to file with the Department of
16  Education's agency clerk a request for a proceeding pursuant
17  to ss. 120.569 and 120.57. If the private school is entitled
18  to a hearing under s. 120.57(1), the Department of Education
19  shall forward the request to the Division of Administrative
20  Hearings.
21         3.  Upon receipt of a request referred pursuant to this
22  paragraph, the director of the Division of Administrative
23  Hearings shall expedite the hearing and assign an
24  administrative law judge who shall commence a hearing within
25  30 days after the receipt of the formal written request by the
26  division and enter a recommended order within 30 days after
27  the hearing or within 30 days after receipt of the hearing
28  transcript, whichever is later. Each party shall be allowed 10
29  days in which to submit written exceptions to the recommended
30  order. A final order shall be entered by the agency within 30
31  days after the entry of a recommended order. The provisions of
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 1  this subparagraph may be waived upon stipulation by all
 2  parties.
 3         (c)  The commissioner may immediately suspend payment
 4  of scholarship funds if it is determined that there is
 5  probable cause to believe that there is:
 6         1.  An imminent threat to the health, safety, and
 7  welfare of the students; or
 8         2.  Fraudulent activity on the part of the private
 9  school. Notwithstanding s. 1002.22(3), in incidents of alleged
10  fraudulent activity pursuant to this section, the Department
11  of Education's Office of Inspector General is authorized to
12  release personally identifiable records or reports of students
13  to the following persons or organizations:
14         a.  A court of competent jurisdiction in compliance
15  with an order of that court or the attorney of record in
16  accordance with a lawfully issued subpoena, consistent with
17  the Family Educational Rights and Privacy Act, 20 U.S.C. s.
18  1232g.
19         b.  A person or entity authorized by a court of
20  competent jurisdiction in compliance with an order of that
21  court or the attorney of record pursuant to a lawfully issued
22  subpoena, consistent with the Family Educational Rights and
23  Privacy Act, 20 U.S.C. s. 1232g.
24         c.  Any person, entity, or authority issuing a subpoena
25  for law enforcement purposes when the court or other issuing
26  agency has ordered that the existence or the contents of the
27  subpoena or the information furnished in response to the
28  subpoena not be disclosed, consistent with the Family
29  Educational Rights and Privacy Act, 20 U.S.C. s. 1232g, and 34
30  C.F.R. s. 99.31.
31  
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 1  The commissioner's order suspending payment pursuant to this
 2  paragraph may be appealed pursuant to the same procedures and
 3  timelines as the notice of proposed action set forth in
 4  paragraph (b).
 5         (11)  SCHOLARSHIP AMOUNT AND PAYMENT.--
 6         (a)  The amount of a scholarship provided to any
 7  student for any single school year by an eligible nonprofit
 8  scholarship-funding organization from eligible contributions
 9  shall not exceed the following annual limits:
10         1.  Three thousand seven hundred fifty dollars for a
11  scholarship awarded to a student enrolled in an eligible
12  private school.
13         2.  Five hundred dollars for a scholarship awarded to a
14  student enrolled in a Florida public school that is located
15  outside the district in which the student resides or in a lab
16  school as defined in s. 1002.32.
17         (b)  Payment of the scholarship by the eligible
18  nonprofit scholarship-funding organization shall be by
19  individual warrant made payable to the student's parent. If
20  the parent chooses that his or her child attend an eligible
21  private school, the warrant must be delivered by the eligible
22  nonprofit scholarship-funding organization to the private
23  school of the parent's choice, and the parent shall
24  restrictively endorse the warrant to the private school. An
25  eligible nonprofit scholarship-funding organization shall
26  ensure that the parent to whom the warrant is made
27  restrictively endorsed the warrant to the private school for
28  deposit into the account of the private school.
29         (c)  An eligible nonprofit scholarship-funding
30  organization shall obtain verification from the private school
31  
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 1  of a student's continued attendance at the school prior to
 2  each scholarship payment.
 3         (d)  Payment of the scholarship shall be made by the
 4  eligible nonprofit scholarship-funding organization no less
 5  frequently than on a quarterly basis.
 6         (12)  ADMINISTRATION; RULES.--
 7         (a)  If the credit granted pursuant to this section is
 8  not fully used in any one year because of insufficient tax
 9  liability on the part of the corporation, the unused amount
10  may be carried forward for a period not to exceed 3 years;
11  however, any taxpayer that seeks to carry forward an unused
12  amount of tax credit must submit an application for allocation
13  of tax credits or carryforward credits as required in
14  paragraph (d) in the year that the taxpayer intends to use the
15  carryforward. This carryforward applies to all approved
16  contributions made after January 1, 2002. A taxpayer may not
17  convey, assign, or transfer the credit authorized by this
18  section to another entity unless all of the assets of the
19  taxpayer are conveyed, assigned, or transferred in the same
20  transaction.
21         (b)  An application for a tax credit pursuant to this
22  section shall be submitted to the department on forms
23  established by rule of the department.
24         (c)  The department and the Department of Education
25  shall develop a cooperative agreement to assist in the
26  administration of this section.
27         (d)  The department shall adopt rules necessary to
28  administer this section, including rules establishing
29  application forms and procedures and governing the allocation
30  of tax credits and carryforward credits under this section on
31  a first-come, first-served basis.
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 1         (e)  The State Board of Education shall adopt rules
 2  pursuant to ss. 120.536(1) and 120.54 to administer this
 3  section as it relates to the roles of the Department of
 4  Education and the Commissioner of Education.
 5         (13)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--
 6         (a)  All eligible contributions received by an eligible
 7  nonprofit scholarship-funding organization shall be deposited
 8  in a manner consistent with s. 17.57(2).
 9         (b)  A nonprofit scholarship-funding organization that
10  is authorized to receive donations and distribute scholarships
11  under this section and s. 220.1875 shall account for donations
12  and scholarships separately by each tax credit program. If, in
13  a single fiscal year, the amount of donations available for
14  distribution as scholarships in one program exceeds the demand
15  for scholarships under that program for that fiscal year, the
16  organization may, with approval from the Department of
17  Education, apply those surplus funds to meet demand in the
18  other program.
19         Section 3.  Section 220.1875, Florida Statutes, is
20  created to read:
21         220.1875  Credits for contributions to nonprofit
22  scholarship-funding organizations; families of students
23  attending schools failing to make adequate progress.--
24         (1)  PURPOSE.--The purpose of this section is to:
25         (a)  Ensure that, while the state is implementing a
26  multiyear, comprehensive strategic program to facilitate the
27  improvement of schools that are failing to make adequate
28  progress based on school performance grading categories,
29  students attending failing schools are not denied the
30  opportunity to gain the knowledge and skills necessary for
31  
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 1  postsecondary education, a career education, or the world of
 2  work.
 3         (b)  Enable the state to fulfill the responsibility, as
 4  articulated by voters in 1998 through an amendment to s. 1,
 5  Art. IX of the State Constitution, to make education a
 6  paramount duty of the state.
 7         (c)  Complement the constitutional requirement to
 8  provide a uniform, efficient, safe, secure, and high-quality
 9  system of free public schools by providing educational
10  opportunities to students attending failing public schools
11  without impeding the ability of those schools to improve.
12         (d)  Encourage private, voluntary contributions to
13  nonprofit scholarship-funding organizations.
14         (2)  DEFINITIONS.--As used in this section, the term:
15         (a)  "Department" means the Department of Revenue.
16         (b)  "Eligible contribution" means a monetary
17  contribution from a taxpayer, subject to the restrictions
18  provided in this section, to an eligible nonprofit
19  scholarship-funding organization. The taxpayer making the
20  contribution may not designate a specific child as the
21  beneficiary of the contribution. The taxpayer may not
22  contribute more than $5 million to any single eligible
23  nonprofit scholarship-funding organization.
24         (c)  "Eligible nonpublic school" means a nonpublic
25  school located in Florida which offers an education to
26  students in any grades K-12 and meets the requirements in
27  subsection (9).
28         (d)  "Eligible nonprofit scholarship-funding
29  organization" means a charitable organization as defined in s.
30  220.187(2)(c) which is exempt from federal income tax pursuant
31  to s. 501(c)(3) of the Internal Revenue Code and complies with
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 1  the provisions of subsection (5).  An eligible nonprofit
 2  scholarship-funding organization that is authorized to provide
 3  scholarships under s. 220.187 may, subject to approval by the
 4  Department of Education, be authorized to provide scholarships
 5  under this section.
 6         (e)  "Qualified student" means a student who:
 7         1.  Has spent the prior school year in attendance at a
 8  public school that has been designated under s. 1008.34 as
 9  performance grade category "F," failing to make adequate
10  progress, and that has had 2 school years in a 4-year period
11  of such low performance, and the student's attendance occurred
12  during a school year in which such designation was in effect;
13         2.  Has been in attendance elsewhere in the public
14  school system and has been assigned to such school for the
15  next school year; or
16         3.  Is entering kindergarten or first grade and has
17  been notified that the student has been assigned to such
18  school for the next school year.
19  
20  This section does not apply to a student who is enrolled in a
21  school operating for the purpose of providing educational
22  services to youth in commitment programs of the Department of
23  Juvenile Justice.
24         (3)  SCHOOL DISTRICT OBLIGATIONS.--
25         (a)  A school district shall, for each student enrolled
26  in or assigned to a school which has been designated as
27  performance grade category "F" for 2 school years in a 4-year
28  period:
29         1.  Timely notify the parent of the student as soon as
30  such designation is made of all options available pursuant to
31  this section;
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 1         2.  Offer that student's parent an opportunity to
 2  enroll the student in another public school within the
 3  district which has been designated by the state pursuant to s.
 4  1008.34 as a school performing higher than the school in which
 5  the student is currently enrolled or to which the student has
 6  been assigned, but not less than performance grade category
 7  "C"; and
 8         3.  Inform that student's parent of the child's
 9  eligibility to receive a scholarship under this section to
10  enroll the student in and transport the student to attend a
11  public school outside the district which has been designated
12  by the state pursuant to s. 1008.34 as a school performing
13  higher than that in which the student is currently enrolled or
14  to which the student has been assigned, but not less than
15  performance grade category "C," or to attend an eligible
16  nonpublic school.
17         (b)  A higher-performing public school that has
18  available space in an adjacent school district shall accept
19  students qualified under this section and report the students
20  for purposes of the district's funding pursuant to the Florida
21  Education Finance Program.
22         (c)  For students in the school district who are
23  attending nonpublic schools under this section, the school
24  district shall provide locations and times to take all
25  statewide assessments required pursuant to s. 1008.22.
26         (d)  Students with disabilities who are eligible to
27  receive services from the school district under federal or
28  state law, and who receive a scholarship under this section,
29  remain eligible to receive services from the school district
30  as provided by federal or state law.
31  
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 1         (4)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
 2  CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
 3         (a)  There is allowed a credit of 100 percent of an
 4  eligible contribution against any tax due for a taxable year
 5  under this chapter. However, such a credit may not exceed 75
 6  percent of the tax due under this chapter for the taxable
 7  year, after the application of any other allowable credits by
 8  the taxpayer. However, at least 5 percent of the total
 9  statewide amount authorized for the tax credit shall be
10  reserved for taxpayers who meet the definition of a small
11  business provided in s. 288.703(1) at the time of application.
12  The credit granted by this section shall be reduced by the
13  difference between the amount of federal corporate income tax,
14  taking into account the credit granted by this section, and
15  the amount of federal corporate income tax without application
16  of the credit granted by this section.
17         (b)  The total amount of tax credits and carryforward
18  of tax credits which may be granted each state fiscal year
19  under this section is $5 million.
20         (c)  A taxpayer who files a Florida consolidated return
21  as a member of an affiliated group pursuant to s. 220.131(1)
22  may be allowed the credit on a consolidated return basis;
23  however, the total credit taken by the affiliated group is
24  subject to the limitation established under paragraph (a).
25         (5)  OBLIGATIONS OF ELIGIBLE NONPROFIT
26  SCHOLARSHIP-FUNDING ORGANIZATIONS.--
27         (a)  An eligible nonprofit scholarship-funding
28  organization shall provide scholarships, from eligible
29  contributions, to qualified students for:
30         1.  Tuition and fees for a qualified student enrolled
31  in an eligible nonpublic school.
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 1         2.  Transportation expenses to a Florida public school
 2  that is located outside the district in which the qualified
 3  student resides.
 4         (b)  For continuity of educational choice, an eligible
 5  nonprofit scholarship-funding organization shall give priority
 6  to qualified students who received a scholarship to attend an
 7  eligible nonpublic school during the previous school year.
 8         (c)  The amount of a scholarship provided to any
 9  qualified student for any single school year by all eligible
10  nonprofit scholarship-funding organizations from eligible
11  contributions may not exceed the following annual limits:
12         1.  For qualified students who choose to attend an
13  eligible nonpublic school, the lesser of:
14         a.  The student's tuition and fees to attend an
15  eligible nonpublic school; or
16         b.  A calculated amount equivalent to the base student
17  allocation in the Florida Education Finance Program multiplied
18  by the appropriate cost factor for the educational program
19  that will be provided for the student in the district school
20  to which he or she is assigned, multiplied by the district
21  cost differential. In addition, the calculated amount shall
22  include the per-student share of instructional materials
23  funds, technology funds, and other categorical funds.
24         2.  For qualified students who choose to attend a
25  higher-performing public school that is located outside the
26  district in which the student resides, $500.
27         (d)  The amount of an eligible contribution which may
28  be accepted by an eligible nonprofit scholarship-funding
29  organization is limited to the amount needed to provide
30  scholarships for qualified students which the organization has
31  
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 1  identified and for which vacancies in eligible nonpublic
 2  schools have been identified.
 3         (e)  An eligible nonprofit scholarship-funding
 4  organization that receives an eligible contribution must spend
 5  100 percent of the eligible contribution to provide
 6  scholarships in the same state fiscal year in which the
 7  contribution was received. No portion of eligible
 8  contributions may be used for administrative expenses. All
 9  interest accrued from contributions must be used for
10  scholarships.
11         (f)  An eligible nonprofit scholarship-funding
12  organization that receives eligible contributions must provide
13  to the Auditor General an annual financial and compliance
14  audit of its accounts and records conducted by an independent
15  certified public accountant and in accordance with rules
16  adopted by the Auditor General.
17         (g)  Payment of the scholarship by the eligible
18  nonprofit scholarship-funding organization shall be by
19  individual warrant or check made payable to the student's
20  parent. If the parent chooses for his or her child to attend
21  an eligible nonpublic school, the warrant or check must be
22  mailed by the eligible nonprofit scholarship-funding
23  organization to the nonpublic school of the parent's choice,
24  and the parent shall restrictively endorse the warrant or
25  check to the nonpublic school. An eligible nonprofit
26  scholarship-funding organization shall ensure that, upon
27  receipt of a scholarship warrant or check, the parent to whom
28  the warrant or check is made restrictively endorses the
29  warrant or check to the nonpublic school of the parent's
30  choice for deposit into the account of the nonpublic school.
31  
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 1         (6)  PARENT OBLIGATIONS.--As a condition for
 2  scholarship payment pursuant to paragraph (5)(g), if the
 3  parent chooses for his or her child to attend an eligible
 4  nonpublic school, the parent must:
 5         (a)  Obtain acceptance for admission of the student to
 6  an eligible nonpublic school and inform the child's school
 7  district within 15 days after receiving acceptance;
 8         (b)  Comply fully with the nonpublic school's
 9  parental-involvement requirements, unless excused by the
10  school for illness or other good cause; and
11         (c)  Ensure that the student receiving a scholarship
12  under this section takes all statewide assessments required
13  pursuant to s. 1008.22.
14         (7)  STUDENT OBLIGATIONS.--As a condition for
15  scholarship payment pursuant to paragraph (5)(g), if the
16  parent chooses for his or her child to attend an eligible
17  nonpublic school, the student must remain in attendance
18  throughout the school year, unless excused by the school for
19  illness or other good cause, and must comply fully with the
20  school's code of conduct.
21         (8)  DURATION OF SCHOLARSHIP.--
22         (a)  For purposes of continuity of educational choice,
23  a scholarship granted under this section shall remain in force
24  until the student returns to the pubic school to which the
25  student was originally assigned, or:
26         1.  If the student is in grades kindergarten through
27  five, until the student matriculates to the sixth grade and
28  the public middle school to which the student is assigned is
29  an accredited school that has a performance grade category
30  designation of "C" or better;
31  
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 1         2.  If the student is in grades six through eight,
 2  until the student matriculates to high school and the public
 3  high school to which the student is assigned is an accredited
 4  school that has a performance grade category designation of
 5  "C" or better.
 6  
 7  At any time upon reasonable notice to the Department of
 8  Education and the school district, the student's parent may
 9  remove the student from the nonpublic school and place the
10  student in a public school, as provided in subparagraph
11  (3)(a)2.
12         (b)  A school from which a student transfers using a
13  scholarship under this section may continue to report the
14  student for the purpose of the district's funding pursuant to
15  the Florida Education Finance Program for the remainder of the
16  period during which the student would have attended that
17  school.  The district shall provide the funding associated
18  with that student directly to the respective public school.
19  The school may not report the student under this paragraph
20  beyond the period after which the student would have
21  matriculated to another school.
22         (9)  ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An
23  eligible nonpublic school must:
24         (a)  Demonstrate fiscal soundness by being in operation
25  for 1 school year or provide the Department of Education with
26  a statement by a certified public accountant confirming that
27  the nonpublic school desiring to participate is insured and
28  the owner or owners have sufficient capital or credit to
29  operate the school for the upcoming year serving the number of
30  students anticipated with expected revenues from tuition and
31  other sources which may be reasonably expected. In lieu of
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 1  such a statement, a surety bond or letter of credit for the
 2  amount equal to the scholarship funds for any quarter may be
 3  filed with the department.
 4         (b)  Notify the Department of Education, the school
 5  district in whose service area the school is located, and all
 6  eligible nonprofit scholarship funding organizations of its
 7  intent to participate in the program under this section by May
 8  1 of the school year preceding the school year in which it
 9  intends to participate. The notice must specify the grade
10  levels and services that the private school has available for
11  qualified students under this section.
12         (c)  Comply with the antidiscrimination provisions of
13  42 U.S.C. s. 2000d.
14         (d)  Meet state and local health and safety laws and
15  codes.
16         (e)  Comply with all state laws relating to general
17  regulation of nonpublic schools.
18         (f)  Accept scholarship students on an entirely random
19  and religious-neutral basis without regard to the student's
20  past academic history; however, the nonpublic school may give
21  preference in accepting applications to siblings of students
22  who have already been accepted on a random and
23  religious-neutral basis.
24         (g)  Be subject to the instruction, curriculum, and
25  attendance criteria adopted by an appropriate nonpublic school
26  accrediting body and be academically accountable to the parent
27  for meeting the educational needs of the student. The
28  nonpublic school must furnish a school profile that includes
29  student performance.
30         (h)  Employ or contract with teachers who hold a
31  baccalaureate or higher degree, have at least 3 years of
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 1  teaching experience in public or private schools, or have
 2  special skills, knowledge, or expertise that qualifies them to
 3  provide instruction in subjects taught.
 4         (i)  Comply with all state statutes relating to private
 5  schools.
 6         (j)  Accept as full tuition and fees the amount
 7  provided by the state nonprofit scholarship-funding
 8  organization for each student.
 9         (k)  Agree not to compel any student attending the
10  private school under this section to profess a specific
11  ideological belief, to pray, or to worship.
12         (l)  Adhere to the tenets of its published disciplinary
13  procedures prior to the expulsion of any student attending the
14  private school under this section.
15         (10)  ADMINISTRATION; RULES.--
16         (a)  If the credit granted pursuant to this section is
17  not fully used in any one year because of insufficient tax
18  liability on the part of the corporation, the unused amount
19  may be carried forward for a period not to exceed 3 years;
20  however, any taxpayer that seeks to carry forward an unused
21  amount of tax credit must submit an application for allocation
22  of tax credits or carryforward credits as required in
23  paragraph (d) in the year that the taxpayer intends to use the
24  carryforward. The total amount of tax credits and carryforward
25  of tax credits granted each state fiscal year under this
26  section is $5 million. A taxpayer may not convey, assign, or
27  transfer the credit authorized by this section to another
28  entity unless all of the assets of the taxpayer are conveyed,
29  assigned, or transferred in the same transaction.
30  
31  
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 1         (b)  An application for a tax credit pursuant to this
 2  section shall be submitted to the department on forms
 3  established by rule of the department.
 4         (c)  The department and the Department of Education
 5  shall develop a cooperative agreement to assist in the
 6  administration of this section. The Department of Education
 7  shall be responsible for annually submitting, by March 15, to
 8  the department a list of eligible nonprofit
 9  scholarship-funding organizations that meet the requirements
10  of paragraph (2)(d) and for monitoring eligibility of
11  nonprofit scholarship-funding organizations that meet the
12  requirements of paragraph (2)(d), eligibility of nonpublic
13  schools that meet the requirements of paragraph (2)(c), and
14  eligibility of expenditures under this section as provided in
15  subsection (5).
16         (d)  The department shall adopt rules pursuant to ss.
17  120.536(1) and 120.54 as necessary to administer this section,
18  including rules establishing application forms and procedures
19  and governing the allocation of tax credits and carryforward
20  credits under this section on a first-come, first-served
21  basis.
22         (e)  The State Board of Education shall adopt rules
23  pursuant to ss. 120.536(1) and 120.54 as necessary to
24  determine the eligibility of nonprofit scholarship-funding
25  organizations as defined in paragraph (2)(d) and according to
26  the provisions of subsection (5) and identify qualified
27  students as defined in paragraph (2)(e).
28         (11)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--
29         (a)  All eligible contributions received by an eligible
30  nonprofit scholarship-funding organization shall be deposited
31  in a manner consistent with s. 17.57(2).
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 1         (b)  A nonprofit scholarship-funding organization that
 2  is authorized to receive donations and distribute scholarships
 3  under this section and s. 220.187 shall account for donations
 4  and scholarships separately by each tax credit program.  If,
 5  in a single fiscal year, the amount of donations available for
 6  distribution as scholarships in one program exceeds the demand
 7  for scholarships under that program for that fiscal year, the
 8  organization may, with approval from the Department of
 9  Education, apply those surplus funds to meet demand in the
10  other program.
11         Section 4.  Paragraph (z) is added to subsection (8) of
12  section 213.053, Florida Statutes, to read:
13         213.053  Confidentiality and information sharing.--
14         (8)  Notwithstanding any other provision of this
15  section, the department may provide:
16         (z)  Information relative to s. 220.1875 to the
17  Department of Education in the conduct of its official
18  business.
19  
20  Disclosure of information under this subsection shall be
21  pursuant to a written agreement between the executive director
22  and the agency.  Such agencies, governmental or
23  nongovernmental, shall be bound by the same requirements of
24  confidentiality as the Department of Revenue.  Breach of
25  confidentiality is a misdemeanor of the first degree,
26  punishable as provided by s. 775.082 or s. 775.083.
27         Section 5.  Subsection (8) of section 220.02, Florida
28  Statutes, is amended to read:
29         220.02  Legislative intent.--
30         (8)  It is the intent of the Legislature that credits
31  against either the corporate income tax or the franchise tax
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 1  be applied in the following order: those enumerated in s.
 2  631.828, those enumerated in s. 220.191, those enumerated in
 3  s. 220.181, those enumerated in s. 220.183, those enumerated
 4  in s. 220.182, those enumerated in s. 220.1895, those
 5  enumerated in s. 221.02, those enumerated in s. 220.184, those
 6  enumerated in s. 220.186, those enumerated in s. 220.1845,
 7  those enumerated in s. 220.19, those enumerated in s. 220.185,
 8  those enumerated in s. 220.187, those enumerated in s.
 9  220.1875, those enumerated in s. 220.192, and those enumerated
10  in s. 220.193.
11         Section 6.  Paragraph (a) of subsection (1) of section
12  220.13, Florida Statutes, is amended to read:
13         220.13  "Adjusted federal income" defined.--
14         (1)  The term "adjusted federal income" means an amount
15  equal to the taxpayer's taxable income as defined in
16  subsection (2), or such taxable income of more than one
17  taxpayer as provided in s. 220.131, for the taxable year,
18  adjusted as follows:
19         (a)  Additions.--There shall be added to such taxable
20  income:
21         1.  The amount of any tax upon or measured by income,
22  excluding taxes based on gross receipts or revenues, paid or
23  accrued as a liability to the District of Columbia or any
24  state of the United States which is deductible from gross
25  income in the computation of taxable income for the taxable
26  year.
27         2.  The amount of interest which is excluded from
28  taxable income under s. 103(a) of the Internal Revenue Code or
29  any other federal law, less the associated expenses disallowed
30  in the computation of taxable income under s. 265 of the
31  Internal Revenue Code or any other law, excluding 60 percent
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 1  of any amounts included in alternative minimum taxable income,
 2  as defined in s. 55(b)(2) of the Internal Revenue Code, if the
 3  taxpayer pays tax under s. 220.11(3).
 4         3.  In the case of a regulated investment company or
 5  real estate investment trust, an amount equal to the excess of
 6  the net long-term capital gain for the taxable year over the
 7  amount of the capital gain dividends attributable to the
 8  taxable year.
 9         4.  That portion of the wages or salaries paid or
10  incurred for the taxable year which is equal to the amount of
11  the credit allowable for the taxable year under s. 220.181.
12  This subparagraph shall expire on the date specified in s.
13  290.016 for the expiration of the Florida Enterprise Zone Act.
14         5.  That portion of the ad valorem school taxes paid or
15  incurred for the taxable year which is equal to the amount of
16  the credit allowable for the taxable year under s. 220.182.
17  This subparagraph shall expire on the date specified in s.
18  290.016 for the expiration of the Florida Enterprise Zone Act.
19         6.  The amount of emergency excise tax paid or accrued
20  as a liability to this state under chapter 221 which tax is
21  deductible from gross income in the computation of taxable
22  income for the taxable year.
23         7.  That portion of assessments to fund a guaranty
24  association incurred for the taxable year which is equal to
25  the amount of the credit allowable for the taxable year.
26         8.  In the case of a nonprofit corporation which holds
27  a pari-mutuel permit and which is exempt from federal income
28  tax as a farmers' cooperative, an amount equal to the excess
29  of the gross income attributable to the pari-mutuel operations
30  over the attributable expenses for the taxable year.
31  
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 1         9.  The amount taken as a credit for the taxable year
 2  under s. 220.1895.
 3         10.  Up to nine percent of the eligible basis of any
 4  designated project which is equal to the credit allowable for
 5  the taxable year under s. 220.185.
 6         11.  The amount taken as a credit for the taxable year
 7  under s. 220.187.
 8         12.  The amount taken as a credit for the taxable year
 9  under s. 220.1875.
10         13.12.  The amount taken as a credit for the taxable
11  year under s. 220.192.
12         14.13.  The amount taken as a credit for the taxable
13  year under s. 220.193.
14         Section 7.  Section 220.701, Florida Statutes, is
15  amended to read:
16         220.701  Collection authority.--The department shall
17  collect the taxes imposed by this chapter and shall pay all
18  moneys received by it into the Corporate Income Tax Trust Fund
19  created under s. 220.7015. Unencumbered balances in this trust
20  fund shall be transferred monthly into the General Revenue
21  Fund of the state. However, such transfers shall be expended
22  exclusively on programs that are consistent with the uses
23  established for the Corporate Income Tax Trust Fund and that
24  are specifically identified in the General Appropriations Act.
25         Section 8.  Subsection (13) of section 1001.10, Florida
26  Statutes, is amended to read:
27         1001.10  Commissioner of Education; general powers and
28  duties.--The Commissioner of Education is the chief
29  educational officer of the state and the sole custodian of the
30  K-20 data warehouse, and is responsible for giving full
31  assistance to the State Board of Education in enforcing
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 1  compliance with the mission and goals of the seamless K-20
 2  education system. To facilitate innovative practices and to
 3  allow local selection of educational methods, the State Board
 4  of Education may authorize the commissioner to waive, upon the
 5  request of a district school board, State Board of Education
 6  rules that relate to district school instruction and school
 7  operations, except those rules pertaining to civil rights, and
 8  student health, safety, and welfare. The Commissioner of
 9  Education is not authorized to grant waivers for any
10  provisions in rule pertaining to the allocation and
11  appropriation of state and local funds for public education;
12  the election, compensation, and organization of school board
13  members and superintendents; graduation and state
14  accountability standards; financial reporting requirements;
15  reporting of out-of-field teaching assignments under s.
16  1012.42; public meetings; public records; or due process
17  hearings governed by chapter 120. No later than January 1 of
18  each year, the commissioner shall report to the Legislature
19  and the State Board of Education all approved waiver requests
20  in the preceding year. Additionally, the commissioner has the
21  following general powers and duties:
22         (13)  To prepare and publish annually reports giving
23  statistics and other useful information pertaining to the tax
24  credit programs under ss. 220.187 and 220.1875 Opportunity
25  Scholarship Program.
26  
27  The commissioner's office shall operate all statewide
28  functions necessary to support the State Board of Education
29  and the K-20 education system, including strategic planning
30  and budget development, general administration, and assessment
31  and accountability.
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 1         Section 9.  Subsection (18) of section 1001.42, Florida
 2  Statutes, is amended to read:
 3         1001.42  Powers and duties of district school
 4  board.--The district school board, acting as a board, shall
 5  exercise all powers and perform all duties listed below:
 6         (18)  CORPORATE INCOME TAX CREDIT SCHOLARSHIP PROGRAM;
 7  FAMILIES OF STUDENTS ATTENDING FAILING SCHOOLS OPPORTUNITY
 8  SCHOLARSHIPS.--Adopt policies allowing students attending
 9  schools that have been designated with a grade of "F," failing
10  to make adequate progress, for 2 school years in a 4-year
11  period to attend a higher performing public school in the same
12  district or an adjoining district or be granted a state
13  opportunity scholarship to transport the student to a public
14  school in an adjoining district or a scholarship to attend a
15  private school, in conformance with s. 220.1875 s. 1002.38 and
16  State Board of Education rule.
17         Section 10.  Subsection (6) of section 1002.20, Florida
18  Statutes, is amended to read:
19         1002.20  K-12 student and parent rights.--Parents of
20  public school students must receive accurate and timely
21  information regarding their child's academic progress and must
22  be informed of ways they can help their child to succeed in
23  school. K-12 students and their parents are afforded numerous
24  statutory rights including, but not limited to, the following:
25         (6)  EDUCATIONAL CHOICE.--
26         (a)  Public school choices.--Parents of public school
27  students may seek whatever public school choice options that
28  are applicable to their students and are available to students
29  in their school districts. These options may include
30  controlled open enrollment, lab schools, charter schools,
31  charter technical career centers, magnet schools, alternative
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 1  schools, special programs, advanced placement, dual
 2  enrollment, International Baccalaureate, International General
 3  Certificate of Secondary Education (pre-AICE), Advanced
 4  International Certificate of Education, early admissions,
 5  credit by examination or demonstration of competency, the New
 6  World School of the Arts, the Florida School for the Deaf and
 7  the Blind, and the Florida Virtual School. These options may
 8  also include the public school choice options of the corporate
 9  income tax credit scholarship programs Opportunity Scholarship
10  Program and the McKay Scholarships for Students with
11  Disabilities Program.
12         (b)  Private school choices.--Parents of public school
13  students may seek private school choice options under certain
14  programs.
15         1.  Under the corporate income tax credit scholarship
16  program for families of students attending schools failing to
17  make adequate progress Opportunity Scholarship Program, the
18  parent of a student in a failing public school may seek a
19  request and receive an opportunity scholarship from an
20  eligible nonprofit scholarship-funding organization for the
21  student to attend a private school in accordance with s.
22  220.1875 the provisions of s. 1002.38.
23         2.  Under the McKay Scholarships for Students with
24  Disabilities Program, the parent of a public school student
25  with a disability who is dissatisfied with the student's
26  progress may request and receive a McKay Scholarship for the
27  student to attend a private school in accordance with the
28  provisions of s. 1002.39.
29         3.  Under the corporate income tax credit scholarship
30  program for families that have limited financial resources,
31  the parent of a student who qualifies for free or
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 1  reduced-price school lunch may seek a scholarship from an
 2  eligible nonprofit scholarship-funding organization for the
 3  student to attend a private school in accordance with the
 4  provisions of s. 220.187.
 5         (c)  Home education.--The parent of a student may
 6  choose to place the student in a home education program in
 7  accordance with the provisions of s. 1002.41.
 8         (d)  Private tutoring.--The parent of a student may
 9  choose to place the student in a private tutoring program in
10  accordance with the provisions of s. 1002.43(1).
11         Section 11.  Section 1002.38, Florida Statutes, is
12  repealed.
13         Section 12.  Section 1002.39, Florida Statutes, is
14  amended to read:
15         1002.39  The John M. McKay Scholarships for Students
16  with Disabilities Program.--There is established a program
17  that is separate and distinct from the Opportunity Scholarship
18  Program and is named the John M. McKay Scholarships for
19  Students with Disabilities Program.
20         (1)  THE JOHN M. MCKAY SCHOLARSHIPS FOR STUDENTS WITH
21  DISABILITIES PROGRAM.--The John M. McKay Scholarships for
22  Students with Disabilities Program is established to provide
23  the option to attend a public school other than the one to
24  which assigned, or to provide a scholarship to a private
25  school of choice, for students with disabilities for whom an
26  individual education plan has been written in accordance with
27  rules of the State Board of Education. Students with
28  disabilities include K-12 students who are documented as
29  having a mental handicap, including trainable, profound, or
30  educable; a speech or language impairment; a hearing
31  impairment, including deafness; a visual impairment, including
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 1  blindness; a dual sensory impairment; a physical impairment; a
 2  serious emotional disturbance, including an emotional
 3  handicap; a specific learning disability, including, but not
 4  limited to, dyslexia, dyscalculia, or developmental aphasia; a
 5  traumatic brain injury; or autism.
 6         (2)  JOHN M. MCKAY SCHOLARSHIP ELIGIBILITY.--The parent
 7  of a public school student with a disability who is
 8  dissatisfied with the student's progress may request and
 9  receive from the state a John M. McKay Scholarship for the
10  child to enroll in and attend a private school in accordance
11  with this section if:
12         (a)  The student has spent the prior school year in
13  attendance at a Florida public school or the Florida School
14  for the Deaf and the Blind. Prior school year in attendance
15  means that the student was:
16         1.  Enrolled and reported by a school district for
17  funding during the preceding October and February Florida
18  Education Finance Program surveys in kindergarten through
19  grade 12, which shall include time spent in a Department of
20  Juvenile Justice commitment program if funded under the
21  Florida Education Finance Program;
22         2.  Enrolled and reported by the Florida School for the
23  Deaf and the Blind during the preceding October and February
24  student membership surveys in kindergarten through grade 12;
25  or
26         3.  Enrolled and reported by a school district for
27  funding during the preceding October and February Florida
28  Education Finance Program surveys, was at least 4 years old
29  when so enrolled and reported, and was eligible for services
30  under s. 1003.21(1)(e).
31  
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 1  However, a dependent child of a member of the United States
 2  Armed Forces who transfers to a school in this state from out
 3  of state or from a foreign country pursuant to a parent's
 4  permanent change of station orders is exempt from this
 5  paragraph but must meet all other eligibility requirements to
 6  participate in the program.
 7         (b)  The parent has obtained acceptance for admission
 8  of the student to a private school that is eligible for the
 9  program under subsection (8) and has requested from the
10  department a scholarship at least 60 days prior to the date of
11  the first scholarship payment. The request must be through a
12  communication directly to the department in a manner that
13  creates a written or electronic record of the request and the
14  date of receipt of the request. The Department of Education
15  must notify the district of the parent's intent upon receipt
16  of the parent's request.
17         (3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student
18  is not eligible for a John M. McKay Scholarship while he or
19  she is:
20         (a)  Enrolled in a school operating for the purpose of
21  providing educational services to youth in Department of
22  Juvenile Justice commitment programs;
23         (b)  Receiving a corporate income tax credit
24  scholarship under s. 220.187;
25         (c)  Receiving an educational scholarship pursuant to
26  this chapter;
27         (d)  Participating in a home education program as
28  defined in s. 1002.01(1);
29         (e)  Participating in a private tutoring program
30  pursuant to s. 1002.43;
31  
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 1         (f)  Participating in a virtual school, correspondence
 2  school, or distance learning program that receives state
 3  funding pursuant to the student's participation unless the
 4  participation is limited to no more than two courses per
 5  school year;
 6         (g)  Enrolled in the Florida School for the Deaf and
 7  the Blind; or
 8         (h)  Not having regular and direct contact with his or
 9  her private school teachers at the school's physical location.
10         (4)  TERM OF JOHN M. MCKAY SCHOLARSHIP.--
11         (a)  For purposes of continuity of educational choice,
12  a John M. McKay Scholarship shall remain in force until the
13  student returns to a public school, graduates from high
14  school, or reaches the age of 22, whichever occurs first.
15         (b)  Upon reasonable notice to the department and the
16  school district, the student's parent may remove the student
17  from the private school and place the student in a public
18  school in accordance with this section.
19         (c)  Upon reasonable notice to the department, the
20  student's parent may move the student from one participating
21  private school to another participating private school.
22         (5)  SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.--
23         (a)1.  By April 1 of each year and within 10 days after
24  an individual education plan meeting, a school district shall
25  notify the parent of the student of all options available
26  pursuant to this section, inform the parent of the
27  availability of the department's telephone hotline and
28  Internet website for additional information on John M. McKay
29  Scholarships, and offer that student's parent an opportunity
30  to enroll the student in another public school within the
31  district.
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 1         2.  The parent is not required to accept the offer of
 2  enrolling in another public school in lieu of requesting a
 3  John M. McKay Scholarship to a private school. However, if the
 4  parent chooses the public school option, the student may
 5  continue attending a public school chosen by the parent until
 6  the student graduates from high school.
 7         3.  If the parent chooses a public school consistent
 8  with the district school board's choice plan under s. 1002.31,
 9  the school district shall provide transportation to the public
10  school selected by the parent. The parent is responsible to
11  provide transportation to a public school chosen that is not
12  consistent with the district school board's choice plan under
13  s. 1002.31.
14         (b)1.  For a student with disabilities who does not
15  have a matrix of services under s. 1011.62(1)(e), the school
16  district must complete a matrix that assigns the student to
17  one of the levels of service as they existed prior to the
18  2000-2001 school year.
19         2.a.  Within 10 school days after it receives
20  notification of a parent's request for a John M. McKay
21  Scholarship, a school district must notify the student's
22  parent if the matrix of services has not been completed and
23  inform the parent that the district is required to complete
24  the matrix within 30 days after receiving notice of the
25  parent's request for a John M. McKay Scholarship. This notice
26  should include the required completion date for the matrix.
27         b.  The school district must complete the matrix of
28  services for any student who is participating in the John M.
29  McKay Scholarships for Students with Disabilities Program and
30  must notify the department of the student's matrix level
31  within 30 days after receiving notification of a request to
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 1  participate in the scholarship program. The school district
 2  must provide the student's parent with the student's matrix
 3  level within 10 school days after its completion.
 4         c.  The department shall notify the private school of
 5  the amount of the scholarship within 10 days after receiving
 6  the school district's notification of the student's matrix
 7  level.
 8         d.  A school district may change a matrix of services
 9  only if the change is to correct a technical, typographical,
10  or calculation error.
11         (c)  A school district shall provide notification to
12  parents of the availability of a reevaluation at least every 3
13  years of each student who receives a John M. McKay
14  Scholarship.
15         (d)  If the parent chooses the private school option
16  and the student is accepted by the private school pending the
17  availability of a space for the student, the parent of the
18  student must notify the department 60 days prior to the first
19  scholarship payment and before entering the private school in
20  order to be eligible for the scholarship when a space becomes
21  available for the student in the private school.
22         (e)  The parent of a student may choose, as an
23  alternative, to enroll the student in and transport the
24  student to a public school in an adjacent school district
25  which has available space and has a program with the services
26  agreed to in the student's individual education plan already
27  in place, and that school district shall accept the student
28  and report the student for purposes of the district's funding
29  pursuant to the Florida Education Finance Program.
30         (f)  For a student who participates in the John M.
31  McKay Scholarships for Students with Disabilities Program
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 1  whose parent requests that the student take the statewide
 2  assessments under s. 1008.22, the district in which the
 3  student attends private school shall provide locations and
 4  times to take all statewide assessments.
 5         (6)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The
 6  department shall:
 7         (a)  Establish a toll-free hotline that provides
 8  parents and private schools with information on participation
 9  in the John M. McKay Scholarships for Students with
10  Disabilities Program.
11         (b)  Annually verify the eligibility of private schools
12  that meet the requirements of subsection (8).
13         (c)  Establish a process by which individuals may
14  notify the department of any violation by a parent, private
15  school, or school district of state laws relating to program
16  participation. The department shall conduct an inquiry of any
17  written complaint of a violation of this section, or make a
18  referral to the appropriate agency for an investigation, if
19  the complaint is signed by the complainant and is legally
20  sufficient. A complaint is legally sufficient if it contains
21  ultimate facts that show that a violation of this section or
22  any rule adopted by the State Board of Education has occurred.
23  In order to determine legal sufficiency, the department may
24  require supporting information or documentation from the
25  complainant. A department inquiry is not subject to the
26  requirements of chapter 120.
27         (d)  Require an annual, notarized, sworn compliance
28  statement by participating private schools certifying
29  compliance with state laws and shall retain such records.
30  
31  
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 1         (e)  Cross-check the list of participating scholarship
 2  students with the public school enrollment lists prior to each
 3  scholarship payment to avoid duplication.
 4         (f)1.  Conduct random site visits to private schools
 5  participating in the John M. McKay Scholarships for Students
 6  with Disabilities Program. The purpose of the site visits is
 7  solely to verify the information reported by the schools
 8  concerning the enrollment and attendance of students, the
 9  credentials of teachers, background screening of teachers, and
10  teachers' fingerprinting results, which information is
11  required by rules of the State Board of Education, subsection
12  (8), and s. 1002.421. The Department of Education may not make
13  more than three random site visits each year and may not make
14  more than one random site visit each year to the same private
15  school.
16         2.  Annually, by December 15, report to the Governor,
17  the President of the Senate, and the Speaker of the House of
18  Representatives the Department of Education's actions with
19  respect to implementing accountability in the scholarship
20  program under this section and s. 1002.421, any substantiated
21  allegations or violations of law or rule by an eligible
22  private school under this program concerning the enrollment
23  and attendance of students, the credentials of teachers,
24  background screening of teachers, and teachers' fingerprinting
25  results and the corrective action taken by the Department of
26  Education.
27         (7)  COMMISSIONER OF EDUCATION AUTHORITY AND
28  OBLIGATIONS.--
29         (a)  The Commissioner of Education shall deny, suspend,
30  or revoke a private school's participation in the scholarship
31  program if it is determined that the private school has failed
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 1  to comply with the provisions of this section. However, in
 2  instances in which the noncompliance is correctable within a
 3  reasonable amount of time and in which the health, safety, or
 4  welfare of the students is not threatened, the commissioner
 5  may issue a notice of noncompliance which shall provide the
 6  private school with a timeframe within which to provide
 7  evidence of compliance prior to taking action to suspend or
 8  revoke the private school's participation in the scholarship
 9  program.
10         (b)  The commissioner's determination is subject to the
11  following:
12         1.  If the commissioner intends to deny, suspend, or
13  revoke a private school's participation in the scholarship
14  program, the department shall notify the private school of
15  such proposed action in writing by certified mail and regular
16  mail to the private school's address of record with the
17  department. The notification shall include the reasons for the
18  proposed action and notice of the timelines and procedures set
19  forth in this paragraph.
20         2.  The private school that is adversely affected by
21  the proposed action shall have 15 days from receipt of the
22  notice of proposed action to file with the department's agency
23  clerk a request for a proceeding pursuant to ss. 120.569 and
24  120.57. If the private school is entitled to a hearing under
25  s. 120.57(1), the department shall forward the request to the
26  Division of Administrative Hearings.
27         3.  Upon receipt of a request referred pursuant to this
28  paragraph, the director of the Division of Administrative
29  Hearings shall expedite the hearing and assign an
30  administrative law judge who shall commence a hearing within
31  30 days after the receipt of the formal written request by the
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 1  division and enter a recommended order within 30 days after
 2  the hearing or within 30 days after receipt of the hearing
 3  transcript, whichever is later. Each party shall be allowed 10
 4  days in which to submit written exceptions to the recommended
 5  order. A final order shall be entered by the agency within 30
 6  days after the entry of a recommended order. The provisions of
 7  this subparagraph may be waived upon stipulation by all
 8  parties.
 9         (c)  The commissioner may immediately suspend payment
10  of scholarship funds if it is determined that there is
11  probable cause to believe that there is:
12         1.  An imminent threat to the health, safety, or
13  welfare of the students; or
14         2.  Fraudulent activity on the part of the private
15  school. Notwithstanding s. 1002.22(3), in incidents of alleged
16  fraudulent activity pursuant to this section, the Department
17  of Education's Office of Inspector General is authorized to
18  release personally identifiable records or reports of students
19  to the following persons or organizations:
20         a.  A court of competent jurisdiction in compliance
21  with an order of that court or the attorney of record in
22  accordance with a lawfully issued subpoena, consistent with
23  the Family Educational Rights and Privacy Act, 20 U.S.C. s.
24  1232g.
25         b.  A person or entity authorized by a court of
26  competent jurisdiction in compliance with an order of that
27  court or the attorney of record pursuant to a lawfully issued
28  subpoena, consistent with the Family Educational Rights and
29  Privacy Act, 20 U.S.C. s. 1232g.
30         c.  Any person, entity, or authority issuing a subpoena
31  for law enforcement purposes when the court or other issuing
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 1  agency has ordered that the existence or the contents of the
 2  subpoena or the information furnished in response to the
 3  subpoena not be disclosed, consistent with the Family
 4  Educational Rights and Privacy Act, 20 U.S.C. s. 1232g, and 34
 5  C.F.R. s. 99.31.
 6  
 7  The commissioner's order suspending payment pursuant to this
 8  paragraph may be appealed pursuant to the same procedures and
 9  timelines as the notice of proposed action set forth in
10  paragraph (b).
11         (8)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--To be
12  eligible to participate in the John M. McKay Scholarships for
13  Students with Disabilities Program, a private school may be
14  sectarian or nonsectarian and must:
15         (a)  Comply with all requirements for private schools
16  participating in state school choice scholarship programs
17  pursuant to s. 1002.421.
18         (b)  Provide to the department all documentation
19  required for a student's participation, including the private
20  school's and student's fee schedules, at least 30 days before
21  the first quarterly scholarship payment is made for the
22  student.
23         (c)  Be academically accountable to the parent for
24  meeting the educational needs of the student by:
25         1.  At a minimum, annually providing to the parent a
26  written explanation of the student's progress.
27         2.  Cooperating with the scholarship student whose
28  parent chooses to participate in the statewide assessments
29  pursuant to s. 1008.22.
30         (d)  Maintain in this state a physical location where a
31  scholarship student regularly attends classes.
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 1  
 2  The inability of a private school to meet the requirements of
 3  this subsection shall constitute a basis for the ineligibility
 4  of the private school to participate in the scholarship
 5  program as determined by the department.
 6         (9)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
 7  PARTICIPATION.--A parent who applies for a John M. McKay
 8  Scholarship is exercising his or her parental option to place
 9  his or her child in a private school.
10         (a)  The parent must select the private school and
11  apply for the admission of his or her child.
12         (b)  The parent must have requested the scholarship at
13  least 60 days prior to the date of the first scholarship
14  payment.
15         (c)  Any student participating in the John M. McKay
16  Scholarships for Students with Disabilities Program must
17  remain in attendance throughout the school year unless excused
18  by the school for illness or other good cause.
19         (d)  Each parent and each student has an obligation to
20  the private school to comply with the private school's
21  published policies.
22         (e)  If the parent requests that the student
23  participating in the John M. McKay Scholarships for Students
24  with Disabilities Program take all statewide assessments
25  required pursuant to s. 1008.22, the parent is responsible for
26  transporting the student to the assessment site designated by
27  the school district.
28         (f)  Upon receipt of a scholarship warrant, the parent
29  to whom the warrant is made must restrictively endorse the
30  warrant to the private school for deposit into the account of
31  the private school. The parent may not designate any entity or
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 1  individual associated with the participating private school as
 2  the parent's attorney in fact to endorse a scholarship
 3  warrant. A participant who fails to comply with this paragraph
 4  forfeits the scholarship.
 5         (10)  JOHN M. MCKAY SCHOLARSHIP FUNDING AND PAYMENT.--
 6         (a)1.  The maximum scholarship granted for an eligible
 7  student with disabilities shall be a calculated amount
 8  equivalent to the base student allocation in the Florida
 9  Education Finance Program multiplied by the appropriate cost
10  factor for the educational program that would have been
11  provided for the student in the district school to which he or
12  she was assigned, multiplied by the district cost
13  differential.
14         2.  In addition, a share of the guaranteed allocation
15  for exceptional students shall be determined and added to the
16  calculated amount. The calculation shall be based on the
17  methodology and the data used to calculate the guaranteed
18  allocation for exceptional students for each district in
19  chapter 2000-166, Laws of Florida. Except as provided in
20  subparagraphs 3. and 4., the calculation shall be based on the
21  student's grade, matrix level of services, and the difference
22  between the 2000-2001 basic program and the appropriate level
23  of services cost factor, multiplied by the 2000-2001 base
24  student allocation and the 2000-2001 district cost
25  differential for the sending district. Also, the calculated
26  amount shall include the per-student share of supplemental
27  academic instruction funds, instructional materials funds,
28  technology funds, and other categorical funds as provided for
29  such purposes in the General Appropriations Act.
30         3.  The calculated scholarship amount for a student who
31  is eligible under subparagraph (2)(a)2. shall be calculated as
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 1  provided in subparagraphs 1. and 2. However, the calculation
 2  shall be based on the school district in which the parent
 3  resides at the time of the scholarship request.
 4         4.  Until the school district completes the matrix
 5  required by paragraph (5)(b), the calculation shall be based
 6  on the matrix that assigns the student to support level I of
 7  service as it existed prior to the 2000-2001 school year. When
 8  the school district completes the matrix, the amount of the
 9  payment shall be adjusted as needed.
10         (b)  The amount of the John M. McKay Scholarship shall
11  be the calculated amount or the amount of the private school's
12  tuition and fees, whichever is less. The amount of any
13  assessment fee required by the participating private school
14  may be paid from the total amount of the scholarship.
15         (c)1.  The school district shall report all students
16  who are attending a private school under this program. The
17  students with disabilities attending private schools on John
18  M. McKay Scholarships shall be reported separately from other
19  students reported for purposes of the Florida Education
20  Finance Program.
21         2.  For program participants who are eligible under
22  subparagraph (2)(a)2., the school district that is used as the
23  basis for the calculation of the scholarship amount as
24  provided in subparagraph (a)3. shall:
25         a.  Report to the department all such students who are
26  attending a private school under this program.
27         b.  Be held harmless for such students from the
28  weighted enrollment ceiling for group 2 programs in s.
29  1011.62(1)(d)3.a. during the first school year in which the
30  students are reported.
31  
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 1         (d)  Following notification on July 1, September 1,
 2  December 1, or February 1 of the number of program
 3  participants, the department shall transfer, from General
 4  Revenue funds only, the amount calculated under paragraph (b)
 5  from the school district's total funding entitlement under the
 6  Florida Education Finance Program and from authorized
 7  categorical accounts to a separate account for the scholarship
 8  program for quarterly disbursement to the parents of
 9  participating students. Funds may not be transferred from any
10  funding provided to the Florida School for the Deaf and the
11  Blind for program participants who are eligible under
12  subparagraph (2)(a)2. For a student exiting a Department of
13  Juvenile Justice commitment program who chooses to participate
14  in the scholarship program, the amount of the John M. McKay
15  Scholarship calculated pursuant to paragraph (b) shall be
16  transferred from the school district in which the student last
17  attended a public school prior to commitment to the Department
18  of Juvenile Justice. When a student enters the scholarship
19  program, the department must receive all documentation
20  required for the student's participation, including the
21  private school's and student's fee schedules, at least 30 days
22  before the first quarterly scholarship payment is made for the
23  student.
24         (e)  Upon notification by the department that it has
25  received the documentation required under paragraph (d), the
26  Chief Financial Officer shall make scholarship payments in
27  four equal amounts no later than September 1, November 1,
28  February 1, and April 1 of each academic year in which the
29  scholarship is in force. The initial payment shall be made
30  after department verification of admission acceptance, and
31  subsequent payments shall be made upon verification of
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 1  continued enrollment and attendance at the private school.
 2  Payment must be by individual warrant made payable to the
 3  student's parent and mailed by the department to the private
 4  school of the parent's choice, and the parent shall
 5  restrictively endorse the warrant to the private school for
 6  deposit into the account of the private school.
 7         (f)  Subsequent to each scholarship payment, the
 8  department shall request from the Department of Financial
 9  Services a sample of endorsed warrants to review and confirm
10  compliance with endorsement requirements.
11         (11)  LIABILITY.--No liability shall arise on the part
12  of the state based on the award or use of a John M. McKay
13  Scholarship.
14         (12)  SCOPE OF AUTHORITY.--The inclusion of eligible
15  private schools within options available to Florida public
16  school students does not expand the regulatory authority of
17  the state, its officers, or any school district to impose any
18  additional regulation of private schools beyond those
19  reasonably necessary to enforce requirements expressly set
20  forth in this section.
21         (13)  RULES.--The State Board of Education shall adopt
22  rules pursuant to ss. 120.536(1) and 120.54 to administer this
23  section, including rules that school districts must use to
24  expedite the development of a matrix of services based on an
25  active individual education plan from another state or a
26  foreign country for a transferring student with a disability
27  who is a dependent child of a member of the United States
28  Armed Forces. The rules must identify the appropriate school
29  district personnel who must complete the matrix of services.
30  For purposes of these rules, a transferring student with a
31  disability is one who was previously enrolled as a student
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 1  with a disability in an out-of-state or an out-of-country
 2  public or private school or agency program and who is
 3  transferring from out of state or from a foreign country
 4  pursuant to a parent's permanent change of station orders.
 5         Section 13.  This act shall take effect July 1, 2007.
 6  
 7            *****************************************
 8                          SENATE SUMMARY
 9    Abolishes the Opportunity Scholarship Program. Provides
      for creation of a program to enhance failing schools.
10    Provides for credits against the corporate tax for
      contributions to nonprofit scholarship-funding
11    organizations. (See bill for details.)
12  
13  
14  
15  
16  
17  
18  
19  
20  
21  
22  
23  
24  
25  
26  
27  
28  
29  
30  
31  
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