HB 1225

1	A bill to be entitled
2	An act relating to the Education Savings Account Program;
3	creating s. 1002.385, F.S.; providing definitions;
4	specifying criteria for students who are eligible to
5	participate in the program; identifying certain students
6	who may not participate in the program; providing that a
7	parent may direct a financial institution trustee of his
8	or her child's account to use the funds for specified
9	costs of attending a private school or participating in a
10	dual enrollment program or to make a contribution to the
11	child's college savings plan or a payment to a contract
12	under the Stanley G. Tate Florida Prepaid College Program;
13	requiring a financial institution to transfer an account
14	to another participating financial institution upon the
15	request of a parent as provided by the Chief Financial
16	Officer by rule; authorizing a parent to direct the
17	trustee to donate unspent funds in an account when a
18	student graduates from high school or when the student's
19	participation in the program is terminated; requiring the
20	trustee to donate the unspent funds to the student's
21	school district if a selection is not timely made;
22	requiring a parent to apply to the Department of Education
23	for his or her child to participate in the program;
24	specifying responsibilities of a parent or student for
25	using funds in an account to attend a private school or
26	private virtual school; requiring a student who
27	participates in the program and attends a private school
28	or private virtual school to take norm-referenced
29	assessment tests required by the Department of Education;
30	specifying responsibilities of a parent or student for
31	using funds in an account to hire a private tutor or
32	private tutoring program; specifying responsibilities of a
33	parent or student for using funds in an account to
34	participate in a dual enrollment program; specifying
35	eligibility criteria for private schools, private tutors,
36	private tutoring programs, and private postsecondary
37	institutions to participate in the program; providing that
38	all state postsecondary institutions are eligible to
39	participate in the program; requiring that the Department
40	of Education establish an enrollment period for the
41	program, process student applications by certain date,
42	verify the eligibility of private schools, private virtual
43	schools, private tutors, private tutoring programs, and
44	postsecondary institutions, publish a list of eligible
45	private schools, submit the list to participating
46	financial institutions by a certain date, notify the
47	participating financial institutions of certain students,
48	establish a toll-free hotline for certain information,
49	establish a process for reporting to the department
50	violations of law relating to the program, require
51	participating private schools, private virtual schools,
52	private tutors, private tutoring programs, and
53	postsecondary institutions to certify compliance with the
54	requirements of the program, compare the list of
55	participating students with the public school enrollment
56	lists, maintain a list of nationally norm-referenced
57	assessment tests, select an independent research
58	organization that must make annual reports relating to the
59	learning gains of students in the program, publish certain
60	annual reports on its website, conduct random visits to
61	certain schools, and issue a report to the Governor, the
62	President of the Senate, and the Speaker of the House of
63	Representatives; requiring that the Chief Financial
64	Officer process applications from financial institutions
65	to participate in the program, provide a list of
66	participating financial institutions to the department by
67	a certain date each year, conduct random audits of
68	participating financial institutions, revoke the
69	eligibility of a financial institutions for violations of
70	law relating to the program, and make payments to the
71	accounts of participating students in specified
72	situations; requiring financial institutions to apply to
73	the Chief Financial Officer to participate in the program;
74	providing that a participating financial institution
75	serves as a trustee for a student's account; limiting the
76	fees that may be charged by a financial institution for
77	its services under the program; requiring a financial
78	institution to make timely quarterly payments directly to
79	a private school, private tutor, private tutoring program,
80	or postsecondary institution; requiring a financial
81	institution to make timely quarterly payments to a
82	selected college savings plan or the Stanley G. Tate
83	Florida Prepaid College Program; requiring a financial
84	institution to notify the department of the identity of
85	certain students at certain dates; requiring a financial
86	institution to annually notify the Chief Financial Officer
87	of its intent to continue to participate in, or intent to
88	withdraw from, the program; requiring a financial
89	institution to provide advance notice to the Chief
90	Financial Officer and parents of students participating in
91	the program before withdrawing from the program;
92	specifying criteria and procedures by which the
93	Commissioner of Education may deny, suspend, or revoke a
94	private school's participation in the program; specifying
95	procedures by which a private school may challenge the
96	decision of the Commissioner of Education to deny,
97	suspend, or revoke the school's participation in the
98	program; requiring the director of the Division of
99	Administrative Hearings to expedite a hearing in certain
100	situations; authorizing the Commissioner of Education to
101	order participating financial institutions to immediately
102	suspend payments from a student's account to a
103	participating private school under certain circumstances;
104	providing for appeal against a payment suspension;
105	authorizing the Office of Inspector General of the
106	Department of Education to release otherwise confidential
107	student information under certain circumstances involving
108	allegations of fraudulent activity under the program;
109	specifying a formula to be used in determining the amount
110	of annual payments made to a student's account under the
111	program; providing for the random selection of applicants
112	to the program who are attending a home education program
113	or a private school; providing a calculation to determine
114	the number of such students who may participate in the
115	program; authorizing the Legislative Budget Commission to
116	transfer funds in excess of amounts required to fully fund
117	the accounts of all participating students to the Florida
118	Education Finance Program; requiring the department and
119	the Department of Financial Services to develop an
120	agreement to assist in the administration of the program;
121	requiring the State Board of Education to adopt rules for
122	the Department of Education and the Commissioner of
123	Education to administer the program; requiring the Chief
124	Financial Officer to adopt rules to administer its
125	responsibilities under the program; providing for the
126	enrollment period and for the number of eligible students
127	for the 2011-2012 school year; requiring the department to
128	randomly select participating students in specified
129	situations; authorizing the State Board of Education to
130	adopt emergency rules for the department and the
131	Commissioner of Education to implement the program;
132	providing an effective date.
133
134	WHEREAS, the Legislature finds that it has a duty to
135	provide for a high-quality education for all children residing
136	within this state, and
137	WHEREAS, the Legislature finds that it has a duty to
138	provide for the establishment, maintenance, and operation of
139	institutions of higher learning, and
140	WHEREAS, a high-quality education for children is
141	facilitated by parental involvement in educational choices for
142	their children, competition among schools and other learning
143	environments, and the measurement and evaluation of student
144	learning gains, and
145	WHEREAS, the Legislature finds that competition between
146	public schools and private schools will enhance the quality of
147	education at public schools by encouraging innovation,
148	flexibility, and efficiency, and
149	WHEREAS, providing a child with an opportunity to attend a
150	public school or with funds to pay for private schooling or
151	tutoring enables the child to access the high-quality education
152	best suited for his or her specific needs, and
153	WHEREAS, the Legislature finds that under the right to
154	religious freedom in the State Constitution, the state may not
155	prohibit a person from using private funds to pay the cost of
156	private schooling or tutoring at an institution having any
157	religious affiliation, NOW, THEREFORE,
158
159	Be It Enacted by the Legislature of the State of Florida:
160
161	Section 1.  Section 1002.385, Florida Statutes, is created
162	to read:
163	1002.385  Education Savings Account Program.-
164	(1)  DEFINITIONS.-As used in this section, the term:
165	(a)  "Account" means an education savings account belonging
166	to a student who is participating in, or who participated in,
167	the program. Funds in an account are private funds.
168	(b)  "College savings plan" means a qualified tuition plan
169	under s. 529 of the Internal Revenue Code which allows the
170	establishment of an account for a beneficiary for the purpose of
171	paying the beneficiary's eligible college expenses.
172	(c)  "Department" means the Department of Education.
173	(d)  "Eligible private postsecondary institution" means a
174	private postsecondary institution that is a member of the
175	Independent Colleges and Universities of Florida and is located
176	in the state.
177	(e)  "Eligible private school" means a private school that
178	offers an education to students in any grade of kindergarten
179	through grade 12, is located in this state, and meets the
180	requirements in subsection (6).
181	(f)  "Financial institution" has the same meaning as
182	defined in s. 655.005.
183	(g)  "Program" means the Education Savings Account Program.
184	(2)  ELIGIBLE STUDENTS.-
185	(a)  A student is eligible to receive funds under the
186	program if the student resides in this state and:
187	1.  Is eligible to enter kindergarten or first grade;
188	2.  Is the sibling of a student who participates in the
189	program and who resides in the same household;
190	3.  Was counted as a full-time equivalent student during
191	the previous state fiscal year for purposes of state per-student
192	funding; or
193	4.  Attends a home education program or a private school
194	and was randomly selected to participate in the program pursuant
195	to subsection (13).
196	(b)  A student remains eligible for the program until he or
197	she graduates from high school and as long as the student does
198	not enroll in a public school, charter school, or a virtual
199	instruction program, excluding the Florida Virtual School, which
200	receives state funding as a result of the student's
201	participation.
202	(3)  INELIGIBLE STUDENTS.-A student may not participate in
203	the program if he or she:
204	(a)  Is enrolled in a school operating for the purpose of
205	providing educational services to youth in a commitment program
206	for the Department of Juvenile Justice;
207	(b)  Participates in a virtual school, correspondence
208	school, or distance learning program that receives state funding
209	for the student's participation;
210	(c)  Is enrolled in the Florida School for the Deaf and the
211	Blind; or
212	(d)  Is receiving an educational scholarship pursuant to
213	chapter 1002.
214	(4)  PARENT AND STUDENT OPTIONS.-
215	(a)  A parent may direct the trustee to use the funds in
216	his or her child's account, in whole or in combination, to:
217	1.  Pay the tuition and fees for the child to attend an
218	eligible private school;
219	2.  Pay the tuition and fees for the child to attend an
220	eligible private virtual school;
221	3.  Pay a private tutor or private tutoring program
222	qualified under s. 1002.43 for supplemental educational
223	services;
224	4.  Pay the cost of tuition, books, or fees for the child
225	to enroll in a dual enrollment program at a state postsecondary
226	institution;
227	5.  Pay the cost of tuition, books, or fees for the child
228	to enroll in a dual enrollment program at an eligible private
229	postsecondary institution;
230	6.  Contribute to the child's college savings plan; or
231	7.  Make a payment toward the purchase of a contract under
232	the Stanley G. Tate Florida Prepaid College Program in s.
233	1009.98.
234	(b)  A parent may direct the trustee to transfer the
235	account to another financial institution participating in the
236	program as provided by the Chief Financial Officer by rule.
237	(c)  Within 3 months after the child graduates from high
238	school or no longer participates in the program, a parent may
239	direct the trustee to donate any unspent funds in the account to
240	any institution identified in subparagraphs 1.-5. or to the
241	school district for the county in which the child last resided
242	before the child's participation in the program was terminated.
243	If a parent fails to identify an institution to which the
244	trustee must donate the funds, the trustee shall donate the
245	funds to the school district for the county in which the child
246	last resided before the child's participation in the program was
247	terminated.
248	(5)  PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
249	PARTICIPATION.-
250	(a)  A parent must annually apply to the department on
251	behalf of the child during the annual enrollment period. As part
252	of the enrollment, the parent must identify the educational
253	option chosen to meet the compulsory attendance requirements of
254	state law whether through attendance at a private school or
255	private virtual school, enrollment in a home education program
256	under s. 1002.41, or a private tutoring program under s.
257	1002.43.
258	(b)1.  If a parent elects for the child to attend an
259	eligible private school or private virtual school, the parent or
260	the child must:
261	a.  Select an eligible private school or private virtual
262	school and apply for admission.
263	b.  Inform the child's school district when the parent
264	withdraws the child to attend the private school or private
265	virtual school.
266	c.  Remain in attendance in the selected school throughout
267	the school year unless excused by the school for illness or
268	other good cause.
269	d.  Comply with the school's published policies.
270	e.  Ensure that the child participating in the program
271	takes the nationally norm-referenced assessment tests
272	administered by the school which are required by the department.
273	The parent may also choose to have the child participate in a
274	statewide assessment test pursuant to s. 1008.22. If the parent
275	requests that the child take a statewide assessment test, the
276	parent is responsible for transporting the child to the testing
277	site designated by the school district.
278	f.  Pay the balance of the school's tuition and fees in
279	excess of the funds in the child's account.
280	2.  A parent who chooses to comply with the compulsory
281	attendance requirements by enrolling his or her child in a
282	private school or private virtual school may also choose to
283	enroll the child in a dual enrollment program through a public
284	postsecondary institution or an eligible private postsecondary
285	institution and use funds from the child's account for such
286	purposes. The parent and child must register and apply for
287	admissions during the institution's registration or application
288	period and are responsible for paying the balance of tuition and
289	fees which is not covered by the payments from the child's
290	account.
291	(c)1.  If a parent elects for his or her child to
292	participate in a home education program, the parent and child
293	must comply with s. 1002.41.
294	2.  A parent who chooses to comply with the compulsory
295	attendance requirements by enrolling his or her child in a home
296	education program may also choose to enroll the child in a dual
297	enrollment program through a public postsecondary institution or
298	an eligible private postsecondary institution and use funds from
299	the child's account for such purpose. The parent and child must
300	register and apply for admissions during the institution's
301	registration or application period and are responsible for
302	paying the balance of tuition and fees which is not covered by
303	payments from the child's account.
304	(d)1.  If a parent elects for the child to receive an
305	education from an eligible private tutor or private tutoring
306	program, the parent and the child must comply with this chapter.
307	2.  A parent who chooses to comply with the compulsory
308	attendance requirements through use of a private tutor or
309	private tutoring program may also choose to enroll his or her
310	child in a dual enrollment program through a public
311	postsecondary institution or an eligible private postsecondary
312	institution and use funds from the child's account for such
313	purpose. The parent and child must register and apply for
314	admissions during the institution's registration or application
315	period and are responsible for paying the balance of tuition and
316	fees which is not covered by payments from the child's account.
317	(e)  If a parent elects to use any portion of his or her
318	child's account as payment for private tutoring through an
319	eligible supplemental educational services provider, the parent
320	is responsible for payments to the provider which are not
321	covered by the child's account.
322	(f)  If a parent elects for the child to participate in
323	dual enrollment at a state postsecondary institution or an
324	eligible private postsecondary institution, the parent or the
325	child must:
326	1.  Register or apply for admission during the
327	institution's registration or application period.
328	2.  Inform the child's school district when the parent
329	withdraws the child to attend the postsecondary institution.
330	3.  Remain in attendance in the postsecondary institution
331	throughout the school year unless excused by the institution for
332	illness or other good cause.
333	4.  Comply with the institution's published policies.
334	5.  Pay the balance of the postsecondary institution's
335	tuition and fees in excess of the funds in the child's account.
336	(g)  If a parent elects to use any of the funds in the
337	child's account to make a contribution to a college savings
338	plan, the parent must comply with all federal and state laws
339	related to contributions to college savings plan.
340	(h)  If a parent elects to use any of the funds in the
341	child's account toward the purchase of a contract under the
342	Stanley G. Tate Florida Prepaid College Program, the parent must
343	comply with all rules and requirements of the program and is
344	responsible for payments in excess of the funds in the account.
345
346	A child may return to the public school system at any time and
347	quarterly payments to the child's account shall cease. The
348	parent of a child who chooses to return to the public school
349	system is responsible for the payment of any outstanding balance
350	owed to the private school, private virtual school, private
351	tutor, private tutoring program, state postsecondary
352	institution, or private postsecondary education institution
353	which was in excess of the funds in the account when payments to
354	the account ceased.
355	(6)  EDUCATIONAL INSTITUTION ELIGIBILITY AND OBLIGATIONS.-
356	(a)  A private school is eligible to participate in the
357	program, whether sectarian or nonsectarian, if the school:
358	1.  Is accredited by the Southern Association of Colleges
359	and Schools or is eligible to participate in the Tax Credit
360	Scholarship Program or the John M. McKay Scholarships for
361	Students with Disabilities Program; and
362	2.  Complies with rules adopted by the department for
363	participation in the program.
364	(b)  A private virtual school is eligible to participate in
365	the program, whether sectarian or nonsectarian, if the school:
366	1.  Is approved by the department to participate in the
367	school district virtual instruction program under s. 1002.45;
368	and
369	2.  Complies with rules adopted by the department for
370	participation in the program.
371	(c)  A private tutor or private tutoring program is
372	eligible to participate in the program if the private tutor or
373	private tutoring program:
374	1.  Is qualified under s. 1002.43;
375	2.  Complies with rules adopted by the department for
376	participation in the program; and
377	3.  Is a supplemental educational services provider under
378	the federal Elementary and Secondary Education Act.
379	(d)  All state postsecondary institutions are eligible to
380	participate in the program and must comply with rules adopted by
381	the department for participation in the program.
382	(e)  A private postsecondary institution is eligible to
383	participate in the program, whether sectarian or nonsectarian,
384	if the institution is a member of the Independent Colleges and
385	Universities of Florida and complies with rules adopted by the
386	department for participation in the program.
387	(7)  DEPARTMENT OF EDUCATION OBLIGATIONS.-The Department of
388	Education shall:
389	(a)  Establish an annual enrollment period and a process in
390	which a parent may apply to enroll his or her child in the
391	program. The enrollment period shall begin by January 1 and end
392	by March 1 before the school year in which funding for the
393	child's account is sought. All applications must be processed by
394	May 1 of each year.
395	(b)  Randomly select students attending a home education
396	program, private school, or private virtual school who are
397	eligible under subparagraph (2)(a)4. to participate in the
398	program if the appropriation to the program is sufficient to
399	fully fund the accounts of all other applicants but is
400	insufficient to fully fund the accounts of all applicants who
401	are attending a home education program or private school.
402	(c)  Annually verify the eligibility of private schools,
403	private virtual schools, private tutors, private tutoring
404	programs, and postsecondary institutions to participate in the
405	program and publish a list of eligible schools, tutors, tutoring
406	programs, and postsecondary institutions.
407	(d)  Annually, by March 15, submit to participating
408	financial institutions a list of eligible private schools,
409	private virtual schools, private tutors, private tutoring
410	programs, and private postsecondary institutions.
411	(e)  Notify participating financial institutions of
412	students who are approved to participate in the program. The
413	notice must be made annually, by May 1, after the department
414	processes all applications to participate in the program.
415	(f)  Establish a toll-free hotline that provides parents
416	and private schools with information on the program.
417	(g)  Establish a process by which a person may notify the
418	department of any violation of laws or rules relating to
419	participation in the program. The department shall conduct an
420	inquiry of all signed, written, and legally sufficient
421	complaints that allege a violation of this section, or must make
422	a referral to the appropriate agency for an investigation. A
423	complaint is legally sufficient if it states ultimate facts
424	showing that this section or a rule adopted under this section
425	has been violated.
426	(h)  Require participating private schools and private
427	virtual schools to annually certify compliance with the
428	requirements of the program. The certification must be made in a
429	sworn and notarized statement by the head of the private school.
430	(i)  Compare the list of students participating in the
431	program with the public school enrollment lists to avoid
432	duplicate payments.
433	(j)  Maintain a list of nationally norm-referenced
434	assessment tests identified by the department which must be
435	administered by a participating private school or private
436	virtual school to students participating in the program. The
437	tests must meet industry standards of quality under rules of the
438	State Board of Education.
439	(k)  Select an independent research organization, which may
440	be a public or private entity or university, to which
441	participating private schools and private virtual schools must
442	report the scores of participating students on the nationally
443	norm-referenced assessment tests administered by the schools in
444	grades 3 through 10.
445	1.  The independent research organization must annually
446	issue a report to the department which includes:
447	a.  The year-to-year learning gains of students in the
448	program;
449	b.  To the extent possible, a comparison of the learning
450	gains of students in the program to the statewide learning gains
451	of public school students having backgrounds similar to those of
452	the students in the program. In order to minimize the costs and
453	time that the independent research organization requires for
454	analysis and evaluation, the department shall conduct analyses
455	of assessment data from matched students in public schools and
456	shall calculate learning gains of control groups using a
457	methodology outlined in the contract with the independent
458	research organization; and
459	c.  The aggregate year-to-year learning gains of students
460	in the program in each participating private school in which
461	there are at least 30 participating students having scores for
462	tests for 2 consecutive years at that private school.
463	2.  The sharing and reporting of the learning gains of
464	students pursuant to this paragraph must be in accordance with
465	s. 20 U.S.C. s. 1232g, the Family Educational Rights and Privacy
466	Act, and may be for the sole purpose of creating the annual
467	report required by subparagraph 1. The department and the
468	independent research organization shall preserve the
469	confidentiality of such information as required by law. The
470	organization may not disaggregate data in its annual report to a
471	level that will identify individual participating schools,
472	except as required under sub-subparagraph 1.c., or disclose the
473	academic level of individual students.
474	3.  The department shall publish the annual report on its
475	website.
476	(l)  Conduct random site visits to private schools, private
477	tutors, private tutoring programs, and private postsecondary
478	institutions participating in the program. During a site visit,
479	the department may conduct only activities to verify the
480	information reported by the schools concerning the enrollment
481	and attendance of students, the credentials of teachers, and the
482	results of criminal history record checks of teachers.
483	(m)  Annually, by December 15, issue a report to the
484	Governor, the President of the Senate, and the Speaker of the
485	House of Representatives describing the implementation of
486	accountability mechanisms for the program; identifying any
487	violations of a law or rule governing the program concerning the
488	enrollment and attendance of students, the credentials of
489	teachers, or the background screening of teachers; and
490	describing the corrective actions taken by the department
491	relating to violations of a law or rule governing the program.
492	(8)  CHIEF FINANCIAL OFFICER OBLIGATIONS.-The Chief
493	Financial Officer shall:
494	(a)  Process applications from financial institutions
495	applying to participate in the program.
496	(b)  Provide a list of participating financial institutions
497	to the department by March 1 each year.
498	(c)  Conduct random audits of financial institutions
499	participating in the program to ensure compliance with this
500	section.
501	(d)  Revoke the eligibility of a financial institution that
502	fails to comply with its obligations under this section.
503	(e)  Upon notice from the department, make payments to the
504	accounts of participating students in four equal installments by
505	September 1, November 1, February 1, and April 1.
506	(9)  OBLIGATIONS OF FINANCIAL INSTITUTIONS.-
507	(a)  A financial institution must apply to the Chief
508	Financial Officer for approval to participate in the program.
509	The Chief Financial Officer shall approve the application of a
510	financial institution if the institution agrees to:
511	1.  Serve as a trustee of the funds in a student's account.
512	2.  Limit its fees imposed on each account to 3 percent or
513	less of each payment it makes from an account.
514	3.  Make timely quarterly payments directly to the eligible
515	private school, private virtual school, private tutor, private
516	tutoring program, or eligible private postsecondary institution
517	selected by the parent. The amount of the quarterly payment to
518	these institutions may not exceed:
519	a.  The amount of the state quarterly payment to the
520	financial institution, less the financial institution's fees.
521	b.  The reported tuition and fee schedule provided to the
522	department for the educational institution.
523	4.  Make timely quarterly payments directly to a state
524	postsecondary institution selected by the parent for the payment
525	of books, tuition, and fees charged for a student's
526	participation in a dual enrollment program. The amount of the
527	quarterly payment to these institutions may not exceed:
528	a.  The amount of the state quarterly payment to the
529	financial institution, less the financial institution's fees.
530	b.  The full cost of books, tuition, and fees charged for
531	the student's participation in the dual enrollment program.
532	5.  Make timely quarterly payments directly to the selected
533	college savings plan or the Stanley G. Tate Florida Prepaid
534	College Program. The amount of such quarterly payment may not
535	exceed the amount of the state quarterly payment to the
536	financial institution, less the financial institution's fees.
537	6.  Notify the department by February 1, July 1, September
538	1, and December 1 of the identity of students who have accounts
539	with the institution under this section.
540	(b)  A participating financial institution must annually
541	notify the Chief Financial Officer of its intent to continue
542	participating in or its intent to withdraw from the program. A
543	financial institution must provide 180 days' notice to the Chief
544	Financial Officer and to the parents of students having an
545	account at the institution before it may withdraw from the
546	program. The institution must also transfer each account to
547	another participating institution selected by a parent or to
548	another participating institution randomly selected by the Chief
549	Financial Officer if the parent fails to timely make a
550	selection.
551	(10)  COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.-
552	(a)1.  The Commissioner of Education shall deny, suspend,
553	or revoke the participation of a private school, private virtual
554	school, private tutor, or private tutoring program in the
555	program if the commissioner determines that the school, tutor,
556	or tutoring program has failed to comply with this section or
557	the rules of the department adopted under this section. However,
558	if the noncompliance is correctable within a reasonable amount
559	of time and the health, safety, or welfare of the students is
560	not threatened, the commissioner may issue a notice of
561	noncompliance that shall provide the school, tutor, or tutoring
562	program with a timeframe within which to show evidence of
563	compliance before action may be taken to suspend or revoke the
564	private school's participation in the program.
565	2.  The commissioner may deny, suspend, or revoke a private
566	school's participation in the program if the commissioner
567	determines that an owner or operator of the private school is
568	operating or has operated an educational institution in this
569	state or another state in a manner that is contrary to the
570	health, safety, or welfare of the public. In making this
571	determination, the commissioner may consider factors, including,
572	but not limited to, acts or omissions by the owner or operator
573	which led to a previous denial or revocation of participation in
574	an education scholarship program or an education savings account
575	program; an owner's or operator's failure to reimburse a
576	student's account for funds improperly received or retained by a
577	school; imposition of a prior criminal or civil administrative
578	sanction related to an owner's or operator's management or
579	operation of an educational institution; or the existence of
580	other types of criminal proceedings in which the owner or
581	operator was found guilty of, regardless of adjudication, or
582	entered a plea of nolo contendere or guilty to any offense
583	involving fraud, deceit, dishonesty, or moral turpitude.
584	(b)  The commissioner's determination to deny, suspend, or
585	revoke a private school's participation in the program is
586	subject to the following:
587	1.  The department must notify the private school of the
588	proposed action in writing by certified mail and regular mail to
589	the private school's address of record with the department. The
590	notice shall state the reasons for the proposed action and
591	notice of the timelines and procedures set forth in this
592	paragraph.
593	2.  The private school that is adversely affected by the
594	proposed action has 15 days following receipt of the notice of
595	proposed action to file with the clerk of the department a
596	request for a proceeding pursuant to ss. 120.569 and 120.57. If
597	the private school is entitled to a hearing under s. 120.57(1),
598	the department shall forward the request to the Division of
599	Administrative Hearings.
600	3.  Upon receipt of a request referred pursuant to this
601	paragraph, the director of the Division of Administrative
602	Hearings shall expedite the hearing and assign an administrative
603	law judge who shall commence a hearing within 30 days after the
604	receipt of the formal written request from the department and
605	enter a recommended order within 30 days after the hearing or
606	within 30 days after receipt of the hearing transcript,
607	whichever is later. Each party may submit written exceptions to
608	the recommended order within 10 days after the recommended order
609	is entered. The department shall enter a final order within 30
610	days after the entry of the recommended order. The provisions of
611	this subparagraph may be waived upon stipulation by all parties.
612	(c)  The commissioner may order participating financial
613	institutions to suspend payment of funds from accounts to a
614	private school if the commissioner finds that probable cause of
615	any of the following exists:
616	1.  An imminent threat to the health, safety, and welfare
617	of a student.
618	2.  Fraudulent activity on the part of the private school.
619
620	The commissioner's order suspending payment pursuant to this
621	paragraph may be appealed pursuant to the same procedures and
622	timelines as the notice of proposed action set forth in
623	paragraph (b).
624	(11)  AUTHORIZED RELEASE OF CONFIDENTIAL INFORMATION.-
625	Notwithstanding s. 1002.22, in incidents of alleged fraudulent
626	activity relating to participation in the program, the Office of
627	Inspector General of the department may release personally
628	identifiable records or reports of students to the following
629	persons or organizations:
630	(a)  A court of competent jurisdiction in compliance with
631	an order of that court or the attorney of record in accordance
632	with a lawfully issued subpoena, consistent with the Family
633	Educational Rights and Privacy Act, 20 U.S.C. s. 1232g.
634	(b)  A person or entity authorized by a court of competent
635	jurisdiction in compliance with an order of that court or the
636	attorney of record pursuant to a lawfully issued subpoena,
637	consistent with the Family Educational Rights and Privacy Act,
638	20 U.S.C. s. 1232g.
639	(c)  A person, entity, or authority issuing a subpoena for
640	law enforcement purposes if the court or other issuing agency
641	has ordered that the existence or the contents of the subpoena
642	or the information furnished in response to the subpoena not be
643	disclosed, consistent with the Family Educational Rights and
644	Privacy Act, 20 U.S.C. s. 1232g, and 34 C.F.R. s. 99.31.
645	(12)  EDUCATION SAVINGS ACCOUNT AMOUNT.-The total amount of
646	payments to a participating student's account for a single
647	school year shall be equal to 50 percent of the base student
648	allocation under the Florida Education Finance Program
649	multiplied by the appropriate cost factor for the educational
650	program that would have been provided for the student in the
651	district school to which he or she was assigned, multiplied by
652	the district cost differential plus the per-student share of
653	instructional materials funds and other categorical funds as
654	appropriated in the General Appropriations Act.
655	(13)  RANDOM SELECTION OF PROGRAM PARTICIPANTS.-By April 1
656	of each year, the department shall randomly select applicants to
657	participate in the program who are in home education programs
658	and private schools and who did not participate in the program
659	during the prior school year. The number of spaces available for
660	these students shall equal the number of students who enrolled
661	in the program during the annual enrollment period and were
662	counted as full-time equivalent students at a public school
663	during the previous state fiscal year for purposes of state per-
664	student funding. For purposes of this calculation, the number of
665	new participants in the program who were public school students
666	does not include kindergarten and first grade students and
667	siblings of other students participating in the program.
668	(14)  LEGISLATIVE BUDGET COMMISSION.-Each quarter the
669	Legislative Budget Commission may transfer any funds
670	appropriated for the program in excess of amounts required to
671	fully fund the accounts of all participating students to the
672	Florida Education Finance Program.
673	(15)  ADMINISTRATION; RULES.-
674	(a)  The department and the Department of Financial
675	Services shall develop a cooperative agreement to assist in the
676	administration of this section.
677	(b)  The State Board of Education shall adopt rules
678	necessary for the department and the Commissioner of Education
679	to administer this section, including rules relating to the
680	establishment of the enrollment period, enrollment forms, and
681	reporting requirements for financial institutions and schools.
682	(c)  The Chief Financial Officer shall adopt rules
683	necessary to administer this section, including rules relating
684	to the eligibility and auditing of participating financial
685	institutions.
686	Section 2.  Enrollment period for the 2011-2012 school
687	year.-
688	(1)  Notwithstanding s. 1002.385(7), Florida Statutes, the
689	enrollment period to participate in the Education Savings
690	Account Program for the 2011-2012 school year is July 1 through
691	July 31. The number of students who may participate is limited
692	to the number of participants specified in the General
693	Appropriations Act.
694	(2)  Notwithstanding s. 1002.385(2), Florida Statutes, the
695	students eligible to participate in the education savings
696	account program during the 2011-2012 school year are limited to
697	students identified in s. 1002.385(2)a.1. and 3., Florida
698	Statutes.
699	(3)  If the Department of Education receives more
700	applications for eligible students during the enrollment period
701	for the 2011-2012 school year than the number specified in the
702	General Appropriations Act, the department shall randomly select
703	students who may participate in the program.
704	(4)(a)  The State Board of Education may adopt emergency
705	rules for the department and the Commissioner of Education to
706	implement the program.
707	(b)  The Chief Financial Officer may adopt emergency rules
708	to implement the program.
709	Section 3.  This act shall take effect upon becoming a law.

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