HB 653

1	A bill to be entitled
2	An act relating to the Corporate Income Tax Credit
3	Scholarship Program; amending s. 220.187, F.S.; providing
4	legislative findings; revising program purposes; providing
5	that siblings of certain students are eligible for
6	participation in the program; revising provisions
7	authorizing the total amount of tax credits that may be
8	granted and deleting the reservation of a portion thereof;
9	revising authorized uses of scholarship funds and
10	providing for premium payments to certain students who
11	participate in statewide assessments; revising provisions
12	relating to expenditure of contributions received during a
13	fiscal year; removing parent responsibility for providing
14	transportation to certain assessment sites; providing
15	obligations of the Department of Education relating to
16	scholarship student participation in statewide
17	assessments; revising scholarship amounts and providing
18	amount of premium payments; requiring State board of
19	Education rule for adjustment of scholarship awards;
20	revising requirements relating to verification of student
21	attendance for purposes of scholarship payment; providing
22	for preservation of credits under certain circumstances;
23	providing an effective date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1.  Subsections (1) and (3), paragraph (b) of
28	subsection (5), paragraphs (d), (i), and (m) of subsection (6),
29	paragraph (e) of subsection (7), paragraph (c) of subsection
30	(8), and paragraphs (a), (b), and (c) of subsection (11) of
31	section 220.187, Florida Statutes, are amended, paragraphs (k)
32	through (n) of subsection (9) are redesignated as paragraphs (m)
33	through (p), respectively, new paragraphs (k) and (l) are added
34	to that subsection, and a new subsection (14) is added to that
35	section, to read:
36	220.187  Credits for contributions to nonprofit
37	scholarship-funding organizations.--
38	(1)  FINDINGS AND PURPOSE.--
39	(a)  The Legislature finds that:
40	1.  It has the inherent power to determine subjects of
41	taxation for general or particular public purposes.
42	2.  Expanding educational opportunities and improving the
43	quality of educational services within the state are valid
44	public purposes that the Legislature may promote using its
45	sovereign power to determine subjects of taxation and exemptions
46	from taxation.
47	3.  Ensuring that all parents, regardless of means, may
48	exercise and enjoy their basic right to educate their children
49	as they see fit is a valid public purpose that the Legislature
50	may promote using its sovereign power to determine subjects of
51	taxation and exemptions from taxation.
52	4.  The existence of programs that provide expanded
53	educational opportunities in this state has not been shown to
54	reduce funding to or otherwise harm public schools within the
55	state, and, to the contrary, per-student funding in public
56	schools has risen each year since the inception of those
57	programs in 1999.
58	5.  Expanded educational opportunities and the healthy
59	competition they promote are critical to improving the quality
60	of education in the state and to ensuring that all children
61	receive the high-quality education to which they are entitled.
62	(b)  The purpose of this section is to:
63	1.(a)  Enable taxpayers to make Encourage private,
64	voluntary contributions to nonprofit scholarship-funding
65	organizations in order to promote the general welfare.
66	2.  Provide taxpayers who wish to help parents with limited
67	resources exercise their basic right to educate their children
68	as they see fit with a means to do so.
69	3.(b)  Promote the general welfare by expanding Expand
70	educational opportunities for children of families that have
71	limited financial resources.
72	4.(c)  Enable children in this state to achieve a greater
73	level of excellence in their education.
74	5.  Improve the quality of education in this state, both by
75	expanding educational opportunities for children and by creating
76	incentives for schools to achieve excellence.
77	(3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Corporate
78	Income Tax Credit Scholarship Program is established. A student
79	is eligible for a corporate income tax credit scholarship if the
80	student qualifies for free or reduced-price school lunches under
81	the National School Lunch Act and:
82	(a)  Was counted as a full-time equivalent student during
83	the previous state fiscal year for purposes of state per-student
84	funding;
85	(b)  Received a scholarship from an eligible nonprofit
86	scholarship-funding organization or from the State of Florida
87	during the previous school year; or
88	(c)  Is eligible to enter kindergarten or first grade.
89
90	Contingent upon available funds, a student may continue in the
91	scholarship program as long as the student's household family
92	income level does not exceed 200 percent of the federal poverty
93	level. A sibling of a student who is continuing in the program
94	and resides in the same household as the student shall also be
95	eligible as a first-time corporate income tax credit scholarship
96	recipient as long as the student's and sibling's household
97	income level does not exceed 200 percent of the federal poverty
98	level.
99	(5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
100	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
101	(b)  The total amount of tax credits and carryforward of
102	tax credits which may be granted each state fiscal year under
103	this section is:
104	1.  Through June 30, 2008, $88 million.
105	2.  Through June 30, 2009, $118 million.
106	3.  Through June 30, 2010, $148 million.
107	4.  Through June 30, 2011, $178 million.
108	5.  Through June 30, 2012, $208 million.
109	6.  Beginning July 1, 2012, and thereafter, $238 million.
110	At least 1 percent of the total statewide amount authorized for
111	the tax credit shall be reserved for taxpayers who meet the
112	definition of a small business provided in s. 288.703(1) at the
113	time of application.
114	(6)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
115	ORGANIZATIONS.--An eligible nonprofit scholarship-funding
116	organization:
117	(d)1.  Must provide scholarships, from eligible
118	contributions, to eligible students for the cost of:
119	a.1.  Tuition and fees or textbook expenses for, or
120	transportation to, an eligible private school. At least 75
121	percent of the scholarship funding must be used to pay tuition
122	expenses; or
123	b.2.  Transportation expenses to a Florida public school
124	that is located outside the district in which the student
125	resides or to a lab school as defined in s. 1002.32.
126	2.  Must provide a premium payment to a scholarship student
127	who participates in the statewide assessments pursuant to s.
128	1008.22 and who attends an eligible private school that has at
129	least 95-percent participation of eligible scholarship students
130	in the statewide assessments. This premium payment shall be
131	applied to transportation costs related to participation in the
132	statewide assessments, statewide assessment preparation costs,
133	and other school fees incurred by a student that are not
134	otherwise covered under this paragraph.
135	(i)  Must expend for annual or partial-year scholarships an
136	amount equal to or greater than 75 percent of the eligible
137	contributions received during the fiscal year in which such
138	contributions are collected. No more than 25 percent of such
139	eligible contributions may be carried forward to the following
140	fiscal year. Any amounts carried forward shall be expended for
141	obligate, in the same fiscal year in which the contribution was
142	received, 100 percent of the eligible contribution to provide
143	annual or partial-year scholarships; however, up to 25 percent
144	of the total contribution may be carried forward for expenditure
145	in the following state fiscal year. A scholarship-funding
146	organization must, before granting a scholarship for an academic
147	year, document each scholarship student's eligibility for that
148	academic year. A scholarship-funding organization may not grant
149	multiyear scholarships in one approval process. Up to 3 percent
150	No portion of eligible collected contributions may be used for
151	administrative expenses incurred by a scholarship-funding
152	organization under this section. All interest accrued from
153	contributions must be used for scholarships.
154	(m)  Must prepare and submit quarterly reports to the
155	Department of Education pursuant to paragraph (9)(o)(m). In
156	addition, an eligible nonprofit scholarship-funding organization
157	must submit in a timely manner any information requested by the
158	Department of Education relating to the scholarship program.
159
160	Any and all information and documentation provided to the
161	Department of Education and the Auditor General relating to the
162	identity of a taxpayer that provides an eligible contribution
163	under this section shall remain confidential at all times in
164	accordance with s. 213.053.
165	(7)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
166	PARTICIPATION.--
167	(e)  The parent shall ensure that the student participating
168	in the scholarship program takes the norm-referenced assessment
169	offered by the private school. The parent may also choose to
170	have the student participate in the statewide assessments
171	pursuant to s. 1008.22. If the parent requests that the student
172	participating in the scholarship program take statewide
173	assessments pursuant to s. 1008.22, the parent is responsible
174	for transporting the student to the assessment site designated
175	by the school district.
176	(8)  PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.--An
177	eligible private school may be sectarian or nonsectarian and
178	must:
179	(c)  Be academically accountable to the parent for meeting
180	the educational needs of the student by:
181	1.  At a minimum, annually providing to the parent a
182	written explanation of the student's progress.
183	2.  Annually administering or making provision for students
184	participating in the scholarship program to take one of the
185	nationally norm-referenced tests identified by the Department of
186	Education. Students with disabilities for whom standardized
187	testing is not appropriate are exempt from this requirement. A
188	participating private school must report a student's scores to
189	the parent and to the independent research organization selected
190	by the Department of Education as described in paragraph (9)(j).
191	3.  Cooperating with the scholarship student whose parent
192	chooses to have the student participate in the statewide
193	assessments pursuant to s. 1008.22 1008.32. To encourage
194	participation, a scholarship student who participates in the
195	statewide assessments is eligible for a premium payment pursuant
196	to subparagraph (6)(d)2. and subparagraph (11)(a)2.
197
198	The inability of a private school to meet the requirements of
199	this subsection shall constitute a basis for the ineligibility
200	of the private school to participate in the scholarship program
201	as determined by the Department of Education.
202	(9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The Department
203	of Education shall:
204	(k)  Provide participating schools with all preparation and
205	instructional materials to prepare students for the statewide
206	assessments pursuant to s. 1008.22.
207	(l)  Determine if at least 95 percent of a private school's
208	eligible scholarship students participate in the statewide
209	assessments pursuant to s. 1008.22.
210	(11)  SCHOLARSHIP AND PREMIUM AMOUNT AND PAYMENT.--
211	(a)1.  The amount of a scholarship provided to any student
212	for any single school year by an eligible nonprofit scholarship-
213	funding organization from eligible contributions shall be for
214	total costs authorized under subparagraph (6)(d)1., not to
215	exceed the following annual limits:
216	a.1.  Four thousand five hundred Three thousand seven
217	hundred fifty dollars for a scholarship awarded to a student
218	enrolled in an eligible private school.
219	b.2.  Five hundred dollars for a scholarship awarded to a
220	student enrolled in a Florida public school that is located
221	outside the district in which the student resides or in a lab
222	school as defined in s. 1002.32.
223	2.  The amount of an annual premium payment by an eligible
224	nonprofit scholarship-funding organization from eligible
225	contributions shall be $200 for costs authorized under
226	subparagraph (6)(d)2. provided to a student who takes the
227	statewide assessments pursuant to s. 1008.22 if at least 95
228	percent of the private school's eligible scholarship students
229	participate in the statewide assessments.
230
231	By June 30, 2009, and annually thereafter, the State Board of
232	Education shall, by rule, adjust the maximum amounts for the
233	scholarship awards under this paragraph to reflect 62 percent of
234	the unweighted FEFP student funding amount established in the
235	annual appropriations act for the ensuing state fiscal year. The
236	annually adjusted amounts shall be rounded downward to the
237	nearest dollar and shall be effective for the following school
238	year beginning July 1, 2009, and each year thereafter.
239	(b)  Payment of the scholarship and premium by the eligible
240	nonprofit scholarship-funding organization shall be by
241	individual warrant made payable to the student's parent. If the
242	parent chooses that his or her child attend an eligible private
243	school, the warrant must be delivered by the eligible nonprofit
244	scholarship-funding organization to the private school of the
245	parent's choice, and the parent shall restrictively endorse the
246	warrant to the private school. An eligible nonprofit
247	scholarship-funding organization shall ensure that the parent to
248	whom the warrant is made restrictively endorsed the warrant to
249	the private school for deposit into the account of the private
250	school.
251	(c)  An eligible nonprofit scholarship-funding organization
252	shall obtain verification from the private school of a student's
253	continued attendance at the school for prior to each period
254	covered by a scholarship payment.
255	(14)  PRESERVATION OF CREDIT.--If any provision or portion
256	of subsection (5) or the application thereof to any person or
257	circumstance is held unconstitutional by any court or is
258	otherwise declared invalid, the unconstitutionality or
259	invalidity shall not affect any credit earned under subsection
260	(5) by any taxpayer with respect to any contribution paid to an
261	eligible nonprofit scholarship-funding organization before the
262	date of a determination of unconstitutionality or invalidity.
263	Such credit shall be allowed at such time and in such a manner
264	as if a determination of unconstitutionality or invalidity had
265	not been made, provided that nothing in this subsection by
266	itself or in combination with any other provision of law shall
267	result in the allowance of any credit to any taxpayer in excess
268	of one dollar of credit for each dollar paid to an eligible
269	nonprofit scholarship-funding organization.
270	Section 2.  This act shall take effect June 30, 2008.

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