CS/CS/HB 453

1	A bill to be entitled
2	An act relating to tax credits for contributions to
3	nonprofit scholarship-funding organizations; amending s.
4	220.186, F.S.; providing that the credit authorized under
5	the Florida Tax Credit Scholarship Program does not apply
6	to the credit for the Florida alternative minimum tax;
7	amending s. 220.187, F.S.; defining the term "direct
8	certification list"; expanding the Corporate Income Tax
9	Credit Scholarship Program to include insurance premium
10	tax credits; revising credits for contributions to
11	nonprofit scholarship-funding organizations; providing
12	that a taxpayer eligible to receive a credit against the
13	insurance premium tax is not eligible to receive a credit
14	against the corporate income tax; imposing an additional
15	requirement on the Department of Education; specifying
16	school district tax credit scholarship notification
17	requirements and limitations; conforming cross-references;
18	creating s. 624.51055, F.S.; providing for credits against
19	the insurance premium tax for contributions to certain
20	eligible nonprofit scholarship-funding organizations;
21	providing application; amending ss. 1002.20, 1002.23,
22	1002.39, and 1002.421, F.S.; providing conforming
23	revisions; authorizing certain insurers that made past
24	contributions to the Florida Tax Credit Scholarship
25	Program to claim the credits against future corporate
26	income tax liability; requiring the insurer to apply to
27	the Department of Revenue for the tax credits; requiring
28	such insurers to file amended corporate income tax and
29	insurance premium tax returns; providing severability;
30	providing an effective date.
31
32	Be It Enacted by the Legislature of the State of Florida:
33
34	Section 1.  Subsection (2) of section 220.186, Florida
35	Statutes, is amended to read:
36	220.186  Credit for Florida alternative minimum tax.--
37	(2)  The credit pursuant to this section shall be the
38	amount of the excess, if any, of the tax paid based upon taxable
39	income determined pursuant to s. 220.13(2)(k) over the amount of
40	tax which would have been due based upon taxable income without
41	application of s. 220.13(2)(k), before application of this
42	credit without application of any credit under s. 220.187.
43	Section 2.  Subsections (2) and (3), paragraph (b) of
44	subsection (5), paragraphs (b) and (i) of subsection (6), and
45	paragraphs (a), (b), (l), and (n) of subsection (9) of section
46	220.187, Florida Statutes, are amended, paragraph (e) is added
47	to subsection (5) of that section, paragraph (o) is added to
48	subsection (9) of that section, subsections (10) through (14) of
49	that section are renumbered as subsections (11) through (15),
50	respectively, and a new subsection (10) is added to that
51	section, to read:
52	220.187  Credits for contributions to nonprofit
53	scholarship-funding organizations.--
54	(2)  DEFINITIONS.--As used in this section, the term:
55	(a)  "Department" means the Department of Revenue.
56	(b)  "Direct certification list" means the certified list
57	of children who qualify for the Food Stamp Program, the
58	Temporary Assistance to Needy Families Program, or the Food
59	Distribution Program on Indian Reservations provided to the
60	Department of Education by the Department of Children and Family
61	Services.
62	(c)(b)  "Eligible contribution" means a monetary
63	contribution from a taxpayer, subject to the restrictions
64	provided in this section, to an eligible nonprofit scholarship-
65	funding organization. The taxpayer making the contribution may
66	not designate a specific child as the beneficiary of the
67	contribution.
68	(d)(c)  "Eligible nonprofit scholarship-funding
69	organization" means a charitable organization that:
70	1.  Is exempt from federal income tax pursuant to s.
71	501(c)(3) of the Internal Revenue Code;
72	2.  Is a Florida entity formed under chapter 607, chapter
73	608, or chapter 617 and whose principal office is located in the
74	state; and
75	3.  Complies with the provisions of subsection (6).
76	(e)(d)  "Eligible private school" means a private school,
77	as defined in s. 1002.01(2), located in Florida which offers an
78	education to students in any grades K-12 and that meets the
79	requirements in subsection (8).
80	(f)(e)  "Owner or operator" includes:
81	1.  An owner, president, officer, or director of an
82	eligible nonprofit scholarship-funding organization or a person
83	with equivalent decisionmaking authority over an eligible
84	nonprofit scholarship-funding organization.
85	2.  An owner, operator, superintendent, or principal of an
86	eligible private school or a person with equivalent
87	decisionmaking authority over an eligible private school.
88	(3)  PROGRAM; SCHOLARSHIP ELIGIBILITY.--The Florida
89	Corporate Income Tax Credit Scholarship Program is established.
90	A student is eligible for a Florida corporate income tax credit
91	scholarship under this section or s. 624.51055 if the student
92	qualifies for free or reduced-price school lunches under the
93	National School Lunch Act or is on the direct certification list
94	and:
95	(a)  Was counted as a full-time equivalent student during
96	the previous state fiscal year for purposes of state per-student
97	funding;
98	(b)  Received a scholarship from an eligible nonprofit
99	scholarship-funding organization or from the State of Florida
100	during the previous school year;
101	(c)  Is eligible to enter kindergarten or first grade; or
102	(d)  Is currently placed, or during the previous state
103	fiscal year was placed, in foster care as defined in s. 39.01.
104
105	Contingent upon available funds, a student may continue in the
106	scholarship program as long as the student's household income
107	level does not exceed 200 percent of the federal poverty level.
108	A sibling of a student who is continuing in the program and
109	resides in the same household as the student shall also be
110	eligible as a first-time corporate income tax credit scholarship
111	recipient as long as the student's and sibling's household
112	income level does not exceed 200 percent of the federal poverty
113	level. Household income for purposes of a student who is
114	currently in foster care as defined in s. 39.01 shall consist
115	only of the income that may be considered in determining whether
116	he or she qualifies for free or reduced-price school lunches
117	under the National School Lunch Act.
118	(5)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX
119	CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--
120	(b)  For each state fiscal year, the total amount of tax
121	credits and carryforward of tax credits which may be granted
122	each state fiscal year under this section and s. 624.51055 is:
123	1.  Through June 30, 2008, $88 million.
124	2.  Beginning July 1, 2008, and thereafter, $118 million.
125	(e)  A taxpayer who is eligible to receive the credit
126	provided for in s. 624.51055 is not eligible to receive the
127	credit provided by this section.
128	(6)  OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING
129	ORGANIZATIONS.--An eligible nonprofit scholarship-funding
130	organization:
131	(b)  Must comply with the following background check
132	requirements:
133	1.  All owners and operators as defined in subparagraph
134	(2)(f)(e)1. are, upon employment or engagement to provide
135	services, subject to level 2 background screening as provided
136	under chapter 435. The fingerprints for the background screening
137	must be electronically submitted to the Department of Law
138	Enforcement and can be taken by an authorized law enforcement
139	agency or by an employee of the eligible nonprofit scholarship-
140	funding organization or a private company who is trained to take
141	fingerprints. However, the complete set of fingerprints of an
142	owner or operator may not be taken by the owner or operator. The
143	results of the state and national criminal history check shall
144	be provided to the Department of Education for screening under
145	chapter 435. The cost of the background screening may be borne
146	by the eligible nonprofit scholarship-funding organization or
147	the owner or operator.
148	2.  Every 5 years following employment or engagement to
149	provide services or association with an eligible nonprofit
150	scholarship-funding organization, each owner or operator must
151	meet level 2 screening standards as described in s. 435.04, at
152	which time the nonprofit scholarship-funding organization shall
153	request the Department of Law Enforcement to forward the
154	fingerprints to the Federal Bureau of Investigation for level 2
155	screening. If the fingerprints of an owner or operator are not
156	retained by the Department of Law Enforcement under subparagraph
157	3., the owner or operator must electronically file a complete
158	set of fingerprints with the Department of Law Enforcement. Upon
159	submission of fingerprints for this purpose, the eligible
160	nonprofit scholarship-funding organization shall request that
161	the Department of Law Enforcement forward the fingerprints to
162	the Federal Bureau of Investigation for level 2 screening, and
163	the fingerprints shall be retained by the Department of Law
164	Enforcement under subparagraph 3.
165	3.  Beginning July 1, 2007, all fingerprints submitted to
166	the Department of Law Enforcement as required by this paragraph
167	must be retained by the Department of Law Enforcement in a
168	manner approved by rule and entered in the statewide automated
169	fingerprint identification system authorized by s. 943.05(2)(b).
170	The fingerprints must thereafter be available for all purposes
171	and uses authorized for arrest fingerprint cards entered in the
172	statewide automated fingerprint identification system pursuant
173	to s. 943.051.
174	4.  Beginning July 1, 2007, the Department of Law
175	Enforcement shall search all arrest fingerprint cards received
176	under s. 943.051 against the fingerprints retained in the
177	statewide automated fingerprint identification system under
178	subparagraph 3. Any arrest record that is identified with an
179	owner's or operator's fingerprints must be reported to the
180	Department of Education. The Department of Education shall
181	participate in this search process by paying an annual fee to
182	the Department of Law Enforcement and by informing the
183	Department of Law Enforcement of any change in the employment,
184	engagement, or association status of the owners or operators
185	whose fingerprints are retained under subparagraph 3. The
186	Department of Law Enforcement shall adopt a rule setting the
187	amount of the annual fee to be imposed upon the Department of
188	Education for performing these services and establishing the
189	procedures for the retention of owner and operator fingerprints
190	and the dissemination of search results. The fee may be borne by
191	the owner or operator of the nonprofit scholarship-funding
192	organization.
193	5.  A nonprofit scholarship-funding organization whose
194	owner or operator fails the level 2 background screening shall
195	not be eligible to provide scholarships under this section.
196	6.  A nonprofit scholarship-funding organization whose
197	owner or operator in the last 7 years has filed for personal
198	bankruptcy or corporate bankruptcy in a corporation of which he
199	or she owned more than 20 percent shall not be eligible to
200	provide scholarships under this section.
201	(i)1.  May use up to 3 percent of eligible contributions
202	received during the state fiscal year in which such
203	contributions are collected for administrative expenses if the
204	organization has operated under this section for at least 3
205	state fiscal years and did not have any negative financial
206	findings in its most recent audit under paragraph (l). Such
207	administrative expenses must be reasonable and necessary for the
208	organization's management and distribution of eligible
209	contributions under this section. No more than one-third of the
210	funds authorized for administrative expenses under this
211	subparagraph may be used for expenses related to the recruitment
212	of contributions from corporate taxpayers.
213	2.  Must expend for annual or partial-year scholarships an
214	amount equal to or greater than 75 percent of the net eligible
215	contributions remaining after administrative expenses during the
216	state fiscal year in which such contributions are collected. No
217	more than 25 percent of such net eligible contributions may be
218	carried forward to the following state fiscal year. Any amounts
219	carried forward shall be expended for annual or partial-year
220	scholarships in the following state fiscal year. Net eligible
221	contributions remaining on June 30 of each year that are in
222	excess of the 25 percent that may be carried forward shall be
223	returned to the State Treasury for deposit in the General
224	Revenue Fund.
225	3.  Must, before granting a scholarship for an academic
226	year, document each scholarship student's eligibility for that
227	academic year. A scholarship-funding organization may not grant
228	multiyear scholarships in one approval process.
229
230	Any and all information and documentation provided to the
231	Department of Education and the Auditor General relating to the
232	identity of a taxpayer that provides an eligible contribution
233	under this section shall remain confidential at all times in
234	accordance with s. 213.053.
235	(9)  DEPARTMENT OF EDUCATION OBLIGATIONS.--The Department
236	of Education shall:
237	(a)  Annually submit to the department, by March 15, a list
238	of eligible nonprofit scholarship-funding organizations that
239	meet the requirements of paragraph (2)(d)(c).
240	(b)  Annually verify the eligibility of nonprofit
241	scholarship-funding organizations that meet the requirements of
242	paragraph (2)(d)(c).
243	(l)  Notify an eligible nonprofit scholarship-funding
244	organization of any of the organization's identified students
245	who are receiving corporate income tax credit scholarships from
246	other eligible nonprofit scholarship-funding organizations.
247	(n)1.  Conduct random site visits to private schools
248	participating in the Florida Corporate Tax Credit Scholarship
249	Program. The purpose of the site visits is solely to verify the
250	information reported by the schools concerning the enrollment
251	and attendance of students, the credentials of teachers,
252	background screening of teachers, and teachers' fingerprinting
253	results. The Department of Education may not make more than
254	seven random site visits each year and may not make more than
255	one random site visit each year to the same private school.
256	2.  Annually, by December 15, report to the Governor, the
257	President of the Senate, and the Speaker of the House of
258	Representatives the Department of Education's actions with
259	respect to implementing accountability in the scholarship
260	program under this section and s. 1002.421, any substantiated
261	allegations or violations of law or rule by an eligible private
262	school under this program concerning the enrollment and
263	attendance of students, the credentials of teachers, background
264	screening of teachers, and teachers' fingerprinting results and
265	the corrective action taken by the Department of Education.
266	(o)  Provide a process to match the direct certification
267	list with the scholarship application data submitted by any
268	nonprofit scholarship-funding organization eligible to receive
269	the 3-percent administrative allowance under paragraph (6)(i).
270	(10)  SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.--Upon
271	the request of any eligible nonprofit scholarship-funding
272	organization, a school district shall inform all households
273	within the district receiving free or reduced-priced meals under
274	the National School Lunch Act of their eligibility to apply for
275	a tax credit scholarship. The form of such notice shall be
276	provided by the eligible nonprofit scholarship-funding
277	organization and the district shall include the provided form,
278	if requested by the organization, in any normal correspondence
279	with eligible households. If an eligible nonprofit scholarship-
280	funding organization requests a special communication to be
281	issued to households within the district receiving free or
282	reduced-price meals under the National School Lunch Act, the
283	organization shall reimburse the district for the cost of
284	postage. Such notice is limited to once a year.
285	Section 3.  Section 624.51055, Florida Statutes, is created
286	to read:
287	624.51055  Credit for contributions to eligible nonprofit
288	scholarship-funding organizations.--
289	(1)  There is allowed a credit of 100 percent of an
290	eligible contribution made to an eligible nonprofit scholarship-
291	funding organization as provided in s. 220.187 against any tax
292	due for a taxable year under s. 624.509(1). However, such a
293	credit may not exceed 75 percent of the tax due under s.
294	624.509(1) after deducting from such tax deductions for
295	assessments made pursuant to s. 440.51; credits for taxes paid
296	under ss. 175.101 and 185.08; credits for income taxes paid
297	under chapter 220; credits for the emergency excise tax paid
298	under chapter 221; and the credit allowed under s. 624.509(5),
299	as such credit is limited by s. 624.509(6). An insurer claiming
300	a credit against premium tax liability under this section shall
301	not be required to pay any additional retaliatory tax levied
302	pursuant to s. 624.5091 as a result of claiming such credit.
303	Section 624.5091 does not limit such credit in any manner.
304	(2)  The provisions of s. 220.187 apply to the credit
305	authorized by this section.
306	Section 4.  Paragraph (b) of subsection (6) of section
307	1002.20, Florida Statutes, is amended to read:
308	1002.20  K-12 student and parent rights.--Parents of public
309	school students must receive accurate and timely information
310	regarding their child's academic progress and must be informed
311	of ways they can help their child to succeed in school. K-12
312	students and their parents are afforded numerous statutory
313	rights including, but not limited to, the following:
314	(6)  EDUCATIONAL CHOICE.--
315	(b)  Private school choices.--Parents of public school
316	students may seek private school choice options under certain
317	programs.
318	1.  Under the Opportunity Scholarship Program, the parent
319	of a student in a failing public school may request and receive
320	an opportunity scholarship for the student to attend a private
321	school in accordance with the provisions of s. 1002.38.
322	2.  Under the McKay Scholarships for Students with
323	Disabilities Program, the parent of a public school student with
324	a disability who is dissatisfied with the student's progress may
325	request and receive a McKay Scholarship for the student to
326	attend a private school in accordance with the provisions of s.
327	1002.39.
328	3.  Under the Florida corporate income Tax Credit
329	Scholarship Program, the parent of a student who qualifies for
330	free or reduced-price school lunch may seek a scholarship from
331	an eligible nonprofit scholarship-funding organization in
332	accordance with the provisions of s. 220.187.
333	Section 5.  Paragraph (e) of subsection (2) of section
334	1002.23, Florida Statutes, is amended to read:
335	1002.23  Family and School Partnership for Student
336	Achievement Act.--
337	(2)  To facilitate meaningful parent and family
338	involvement, the Department of Education shall develop
339	guidelines for a parent guide to successful student achievement
340	which describes what parents need to know about their child's
341	educational progress and how they can help their child to
342	succeed in school. The guidelines shall include, but need not be
343	limited to:
344	(e)  Educational choices, as provided for in s. 1002.20(6),
345	and Florida corporate income tax credit scholarships, as
346	provided for in s. 220.187;
347	Section 6.  Paragraph (b) of subsection (3) of section
348	1002.39, Florida Statutes, is amended to read:
349	1002.39  The John M. McKay Scholarships for Students with
350	Disabilities Program.--There is established a program that is
351	separate and distinct from the Opportunity Scholarship Program
352	and is named the John M. McKay Scholarships for Students with
353	Disabilities Program.
354	(3)  JOHN M. MCKAY SCHOLARSHIP PROHIBITIONS.--A student is
355	not eligible for a John M. McKay Scholarship while he or she is:
356	(b)  Receiving a Florida corporate income tax credit
357	scholarship under s. 220.187;
358	Section 7.  Subsection (1) of section 1002.421, Florida
359	Statutes, is amended to read:
360	1002.421  Accountability of private schools participating
361	in state school choice scholarship programs.--
362	(1)  A Florida private school participating in the Florida
363	Corporate Income Tax Credit Scholarship Program established
364	pursuant to s. 220.187 or an educational scholarship program
365	established pursuant to this chapter must comply with all
366	requirements of this section in addition to private school
367	requirements outlined in s. 1002.42, specific requirements
368	identified within respective scholarship program laws, and other
369	provisions of Florida law that apply to private schools.
370	Section 8.  If an insurance company that filed corporate
371	income tax returns under chapter 220, Florida Statutes, on a
372	separate-company basis and made an eligible contribution under
373	s. 220.187, Florida Statutes, for its tax year that began during
374	the calendar year 2006, 2007, or 2008, but did not receive a
375	dollar-for-dollar benefit for making the contribution, taking
376	into account its net corporate income tax liability and
377	corresponding insurance premium tax liability, the insurance
378	company may apply to the Department of Revenue by July 31, 2009,
379	to apply the credits against its 2009 corporate income tax
380	liability and carry over unused credit amounts as allowed by s.
381	220.187, Florida Statutes. An insurer's scholarship credit
382	amounts from 2006, 2007, and 2008 that are applied in 2009 shall
383	be treated as corporate income taxes paid for the purposes of
384	computing the amount of insurance premium taxes owed by the
385	insurance company. Notwithstanding ss. 95.091 and 215.26,
386	Florida Statutes, the insurer must file amended corporate income
387	tax returns as part of its application for its tax years that
388	began during the calendar years 2006, 2007, and 2008 in order to
389	remove all credits claimed under s. 220.187, Florida Statutes,
390	for those years and correct the amount of corporate income taxes
391	paid. The insurer must also file amended insurance premium tax
392	returns as part of its application. This section does not
393	increase the annual cap per fiscal year on total tax credits and
394	carryforwards of tax credits set forth in s. 220.187(5)(b),
395	Florida Statutes.
396	Section 9.  If any provision of this act or the application
397	thereof to any person or circumstance is held invalid, the
398	invalidity shall not affect other provisions or applications of
399	the act which can be given effect without the invalid provision
400	or application, and to this end the provisions of this act are
401	declared severable.
402	Section 10.  This act shall take effect July 1, 2009.

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