HB 7145

1	A bill to be entitled
2	An act relating to scholarship programs; amending s.
3	220.187, F.S., relating to the Corporate Income Tax Credit
4	Scholarship Program; providing legislative findings;
5	revising program purposes; providing a definition;
6	providing that specified students who have been in
7	Department of Juvenile Justice education programs or who
8	are currently or have been in foster care are eligible for
9	participation in the scholarship program; providing income
10	criteria for continuation of scholarships for students in
11	foster care; providing for eligibility of siblings of
12	certain students; revising provisions relating to
13	authorized uses of scholarship funds and expenditure of
14	contributions received during the fiscal year; revising
15	scholarship amounts and payments; providing for
16	preservation of credits under certain circumstances;
17	amending s. 1002.39, F.S., relating to the John M. McKay
18	Scholarships for Students with Disabilities Program;
19	revising scholarship ineligibility and private school
20	eligibility provisions to exempt certain students from
21	regular class attendance requirements under certain
22	circumstances; revising Department of Education
23	obligations relating to cross-check of student enrollment;
24	providing private school requirements relating to
25	discovery of duplicative enrollment and penalties under
26	certain circumstances; requiring a private school to
27	maintain a physical location in this state where case
28	management services are provided to students subject to
29	the regular class attendance exemption; requiring a
30	private school to employ a case manager; specifying case
31	manager qualifications and responsibilities; specifying
32	the timeframe for parents to provide documentation for the
33	regular class attendance exemption; providing an effective
34	date.
35
36	WHEREAS, the Corporate Income Tax Credit Scholarship
37	Program has produced substantial cost savings by relieving the
38	state of the expense of educating program participants in public
39	schools at a cost in foregone tax revenue that is substantially
40	less than the per-student cost of educating children in public
41	schools, and
42	WHEREAS, the Corporate Income Tax Credit Scholarship
43	Program and the John M. McKay Scholarships for Students with
44	Disabilities Program have relieved public school class size by
45	creating new classroom spaces in the public schools at no cost
46	to the taxpayers, and
47	WHEREAS, empirical evidence is clear, overwhelming, and
48	uncontroverted that expanding educational options produces
49	improved educational outcomes, both for participating children
50	and for public schools that are exposed to healthy competition
51	as a result, and no study has ever documented any harm to public
52	schools as a result of expanding educational options through
53	programs like the Corporate Income Tax Credit Scholarship
54	Program and the John M. McKay Scholarships for Students with
55	Disabilities Program, NOW, THEREFORE,
56
57	Be It Enacted by the Legislature of the State of Florida:
58
59	Section 1.  Subsections (1) and (3), paragraphs (d) and (i)
60	of subsection (6), and paragraphs (a) and (c) of subsection (11)
61	of section 220.187, Florida Statutes, are amended, paragraph (f)
62	is added to subsection (2), and subsection (14) is added to that
63	section, to read:
64	220.187  Credits for contributions to nonprofit
65	scholarship-funding organizations.--
66	(1)  FINDINGS AND PURPOSE.--
67	(a)  The Legislature finds that:
68	1.  It has the inherent power to determine subjects of
69	taxation for general or particular public purposes.
70	2.  Expanding educational opportunities and improving the
71	quality of educational services within the state are valid
72	public purposes that the Legislature may promote using its
73	sovereign power to determine subjects of taxation and exemptions
74	from taxation.
75	3.  Ensuring that all parents, regardless of means, may
76	exercise and enjoy their basic right to educate their children
77	as they see fit is a valid public purpose that the Legislature
78	may promote using its sovereign power to determine subjects of
79	taxation and exemptions from taxation.
80	4.  The existence of programs that provide expanded
81	educational opportunities in this state has not been shown to
82	reduce funding to or otherwise harm public schools within the
83	state, and, to the contrary, per-student funding in public
84	schools has risen each year since the first inception of those
85	programs in 1999.
86	5.  Expanded educational opportunities and the healthy
87	competition they promote are critical to improving the quality
88	of education in the state and to ensuring that all children
89	receive the high-quality education to which they are entitled.
90	(b)  The purpose of this section is to:
91	1.(a)  Enable taxpayers to make Encourage private,
92	voluntary contributions to nonprofit scholarship-funding
93	organizations in order to promote the general welfare.
94	2.  Provide taxpayers who wish to help parents with limited
95	resources exercise their basic right to educate their children
96	as they see fit with a means to do so.
97	3.(b)  Promote the general welfare by expanding Expand
98	educational opportunities for children of families that have
99	limited financial resources.
100	4.(c)  Enable children in this state to achieve a greater
101	level of excellence in their education.
102	5.  Improve the quality of education in this state, both by
103	expanding educational opportunities for children and by creating
104	incentives for schools to achieve excellence.
105	(2)  DEFINITIONS.--As used in this section, the term:
106	(f)  "Parent" has the same meaning as in s. 1000.21.
107	(3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
108	Income Tax Credit Scholarship Program is established. A student
109	is eligible for a corporate income tax credit scholarship if the
110	student qualifies for free or reduced-price school lunches under
111	the National School Lunch Act and:
112	(a)  Was counted as a full-time equivalent student during
113	the previous state fiscal year for purposes of state per-student
114	funding;
115	(b)  Was counted as a full-time equivalent student at any
116	time during the previous state fiscal year in a Department of
117	Juvenile Justice education program under s. 1003.52 for purposes
118	of state per-student funding;
119	(c)(b)  Received a scholarship from an eligible nonprofit
120	scholarship-funding organization or from the State of Florida
121	during the previous school year; or
122	(d)(c)  Is eligible to enter kindergarten or first grade;
123	or
124	(e)  Is currently placed, or during the previous state
125	fiscal year was placed, in foster care as defined in s. 39.01.
126
127	Contingent upon available funds, a student may continue in the
128	scholarship program as long as the student's family income level
129	does not exceed 200 percent of the federal poverty level. Family
130	income for purposes of a student who is currently in foster care
131	as defined in s. 39.01 shall consist only of the income that may
132	be considered in determining whether he or she qualifies for
133	free or reduced-price school lunches under the National School
134	Lunch Act. A sibling of a student who is continuing in the
135	program and resides in the same household as the student shall
136	also be eligible as a first-time corporate income tax credit
137	scholarship recipient as long as the student's and sibling's
138	family income level does not exceed 200 percent of the federal
139	poverty level.
140	(6)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
141	ORGANIZATIONS.--An eligible nonprofit scholarship-funding
142	organization:
143	(d)  Must provide scholarships, from eligible
144	contributions, to eligible students for:
145	1.  Tuition, or textbook expenses, or registration fees
146	for, or transportation to, an eligible private school. The
147	amount of the scholarship shall be the maximum allowed by law or
148	the amount of the private school's textbook expenses and
149	published tuition and registration fees, whichever is less At
150	least 75 percent of the scholarship funding must be used to pay
151	tuition expenses; or
152	2.  Transportation expenses to a Florida public school that
153	is located outside the district in which the student resides or
154	to a lab school as defined in s. 1002.32.
155	(i)  Must expend for annual or partial-year scholarships an
156	amount equal to or greater than 75 percent of the eligible
157	contributions received during the fiscal year in which such
158	contributions are collected. No more than 25 percent of such
159	eligible contributions may be carried forward to the succeeding
160	fiscal year. Any amounts carried forward shall be expended for
161	obligate, in the same fiscal year in which the contribution was
162	received, 100 percent of the eligible contribution to provide
163	annual or partial-year scholarships; however, up to 25 percent
164	of the total contribution may be carried forward for expenditure
165	in the following state fiscal year. A scholarship-funding
166	organization must, before granting a scholarship for an academic
167	year, document each scholarship student's eligibility for that
168	academic year. A scholarship-funding organization may not grant
169	multiyear scholarships in one approval process. No portion of
170	eligible contributions may be used for administrative expenses.
171	All interest accrued from contributions must be used for
172	scholarships.
173
174	Any and all information and documentation provided to the
175	Department of Education and the Auditor General relating to the
176	identity of a taxpayer that provides an eligible contribution
177	under this section shall remain confidential at all times in
178	accordance with s. 213.053.
179	(11)  SCHOLARSHIP AMOUNT AND PAYMENT.--
180	(a)  The amount of a scholarship provided to any student
181	for any single school year by an eligible nonprofit scholarship-
182	funding organization from eligible contributions shall not
183	exceed the following annual limits:
184	1.  Three thousand seven hundred fifty dollars for a
185	scholarship awarded to a student enrolled in kindergarten
186	through grade 5 in an eligible private school.
187	2.  Four thousand dollars for a scholarship awarded to a
188	student enrolled in grades 6 through 8 in an eligible private
189	school.
190	3.  Four thousand two hundred fifty dollars for a
191	scholarship awarded to a student enrolled in grades 9 through 12
192	in an eligible private school.
193	4.2.  Five hundred dollars for a scholarship awarded to a
194	student enrolled in a Florida public school that is located
195	outside the district in which the student resides or in a lab
196	school as defined in s. 1002.32.
197	(c)  An eligible nonprofit scholarship-funding organization
198	shall obtain verification from the private school of a student's
199	continued attendance at the school for prior to each period
200	covered by a scholarship payment.
201	(14)  PRESERVATION OF CREDIT.--If any provision or portion
202	of subsection (5) or the application thereof to any person or
203	circumstance is held unconstitutional by any court or is
204	otherwise invalid, the unconstitutionality or invalidity shall
205	not affect any credit earned under subsection (5) by any
206	taxpayer with respect to any contribution paid to an eligible
207	nonprofit scholarship-funding organization before the date of a
208	determination of unconstitutionality or invalidity. Such credit
209	shall be allowed at such time and in such a manner as if a
210	determination of unconstitutionality or invalidity had not been
211	made, provided that nothing in this subsection by itself or in
212	combination with any other provision of law shall result in the
213	allowance of any credit to any taxpayer in excess of one dollar
214	of credit for each dollar paid to an eligible nonprofit
215	scholarship-funding organization.
216	Section 2.  Paragraph (h) of subsection (3), paragraph (e)
217	of subsection (6), and subsection (8) of section 1002.39,
218	Florida Statutes, are amended, and paragraph (g) is added to
219	subsection (9) of that section, to read:
220	1002.39  The John M. McKay Scholarships for Students with
221	Disabilities Program.--There is established a program that is
222	separate and distinct from the Opportunity Scholarship Program
223	and is named the John M. McKay Scholarships for Students with
224	Disabilities Program.
225	(3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student is
226	not eligible for a John M. McKay Scholarship while he or she is:
227	(h)  Not having regular and direct contact with his or her
228	private school teachers at the school's physical location unless
229	the following criteria are met:
230	1.  The student's primary care physician, a medical doctor
231	treating the student's disability, or a clinical psychologist
232	treating the student's disability provides a notarized, sworn
233	statement to the department certifying that the student's
234	welfare or the welfare of other students in the classroom will
235	be jeopardized if the student is required to regularly attend
236	class at the school's physical location.
237	2.  The student's primary care physician, a medical doctor
238	treating the student's disability, or a clinical psychologist
239	treating the student's disability annually reviews the student's
240	case and recertifies to the department by May 1 that the
241	student's welfare or the welfare of the other students in the
242	classroom will be jeopardized if the student is required to
243	regularly attend class at the school's physical location.
244
245	A student who received a scholarship in the 2005-2006 or 2006-
246	2007 school year and who demonstrates that he or she met the
247	criteria of subparagraph 1. shall be eligible to receive a
248	scholarship beginning in the 2007-2008 school year.
249	(6)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The department
250	shall:
251	(e)  Cross-check the list of participating scholarship
252	students with the public school enrollment lists prior to each
253	scholarship payment to avoid duplication in accordance with the
254	following deadlines:
255	1.  For the scholarship payment due no later than September
256	1 under paragraph (10)(e), the cross-check shall be completed by
257	the department within 21 days after the opening date adopted
258	under s. 1001.42(4)(f) for public schools in the school district
259	in which the scholarship student resides.
260	2.  For all other scholarship payments under paragraph
261	(10)(e), the department shall complete the cross-check prior to
262	each payment.
263
264	The department shall provide written notice via certified mail
265	to a private school within 7 business days following the
266	department's discovery of duplication, and the private school
267	via certified mail shall return the warrant to the department or
268	provide the department with documentation evidencing the
269	scholarship recipient's attendance at the private school within
270	7 business days following receipt of written notice from the
271	department. If a private school fails to respond to the notice
272	of duplication in the manner required, the Commissioner of
273	Education shall suspend future scholarship payments to the
274	private school until the commissioner determines that the
275	private school is in compliance with this paragraph. An order by
276	the commissioner suspending payment under this paragraph may be
277	appealed pursuant to the same procedures and timelines as the
278	notice of proposed action set forth in paragraph (7)(b).
279	(8)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--To be
280	eligible to participate in the John M. McKay Scholarships for
281	Students with Disabilities Program:,
282	(a)  A private school may be sectarian or nonsectarian and
283	must:
284	1.(a)  Comply with all requirements for private schools
285	participating in state school choice scholarship programs
286	pursuant to s. 1002.421.
287	2.(b)  Provide to the department all documentation required
288	for a student's participation, including the private school's
289	and student's fee schedules, at least 30 days before the first
290	quarterly scholarship payment is made for the student.
291	3.(c)  Be academically accountable to the parent for
292	meeting the educational needs of the student by:
293	a.1.   Providing to the parent, at a minimum, an annual
294	annually providing to the parent a written report explanation of
295	the student's progress.
296	b.2.  Cooperating with the scholarship student whose parent
297	chooses to participate in the statewide assessments pursuant to
298	s. 1008.22.
299	4. (d)  Maintain in this state a physical location where a
300	scholarship student:
301	a.  Regularly attends classes; or
302	b.  Receives case management services if the student is
303	enrolled in the program under subparagraph (3)(h)1. or
304	subparagraph (3)(h)2.
305	(b)  A private school that enrolls students under
306	subparagraph (3)(h)1. or subparagraph (3)(h)2. must:
307	1.  Employ or contract with a case manager who has special
308	skills, knowledge, or expertise that qualifies him or her to
309	provide assistance to the student with disabilities and the
310	student's parent.
311	2.  Require each employee or contractor who provides
312	regular and direct instruction or services to a student at a
313	site other than the private school's physical location to submit
314	to the case manager documentation of the instruction, services,
315	and progress of the student.
316	3.  Ensure that the case manager is responsible for
317	coordinating instruction and services, monitoring service
318	delivery, and reviewing and maintaining the documentation
319	provided by persons employed or under contract to provide
320	services to a student at a site other than the eligible private
321	school's physical location and for providing to the parent and
322	the school a quarterly report on the student's progress.
323	4.  Notify the department of the students who are enrolled
324	pursuant to subparagraph (3)(h)1. or subparagraph (3)(h)2.
325
326	The inability of a private school to meet the requirements of
327	this subsection shall constitute a basis for the ineligibility
328	of the private school to participate in the scholarship program
329	as determined by the department.
330	(9)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
331	PARTICIPATION.--A parent who applies for a John M. McKay
332	Scholarship is exercising his or her parental option to place
333	his or her child in a private school.
334	(g)  The parent of a student with disabilities who
335	qualifies to receive case management services under sub-
336	subparagraph (8)(a)4.b. shall provide the documentation required
337	under subparagraph (3)(h)1. or subparagraph (3)(h)2. to the
338	department at least 60 days before the first scholarship
339	payment.
340	Section 3.  This act shall take effect July 1, 2007.

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