Florida Senate - 2011                                    SB 1550
       
       
       
       By Senator Negron
       
       
       
       
       28-00512B-11                                          20111550__
    1                        A bill to be entitled                      
    2         An act relating to the Education Savings Account
    3         Program; creating s. 1002.385, F.S.; providing
    4         definitions; specifying criteria for students who are
    5         eligible to participate in the program; identifying
    6         certain students who may not participate in the
    7         program; providing that a parent may direct a
    8         financial institution trustee of his or her child’s
    9         account to use the funds for specified costs of
   10         attending a private school or participating in a dual
   11         enrollment program or to make a contribution to the
   12         child’s college savings plan or a payment to a
   13         contract under the Stanley G. Tate Florida Prepaid
   14         College Program; requiring a financial institution to
   15         transfer an account to another participating financial
   16         institution upon the request of a parent as provided
   17         by the Chief Financial Officer by rule; authorizing a
   18         parent to direct the trustee to donate unspent funds
   19         in an account when a student graduates from high
   20         school or when the student’s participation in the
   21         program is terminated; requiring the trustee to donate
   22         the unspent funds to the student’s school district if
   23         a selection is not timely made; requiring a parent to
   24         apply to the Department of Education for his or her
   25         child to participate in the program; specifying
   26         responsibilities of a parent or student for using
   27         funds in an account to attend a private school or
   28         private virtual school; requiring a student who
   29         participates in the program and attends a private
   30         school or private virtual school to take norm
   31         referenced assessment tests required by the Department
   32         of Education; specifying responsibilities of a parent
   33         or student for using funds in an account to hire a
   34         private tutor or private tutoring program; specifying
   35         responsibilities of a parent or student for using
   36         funds in an account to participate in a dual
   37         enrollment program; specifying eligibility criteria
   38         for private schools, private tutors, private tutoring
   39         programs, and private postsecondary institutions to
   40         participate in the program; providing that all state
   41         postsecondary institutions are eligible to participate
   42         in the program; requiring that the Department of
   43         Education establish an enrollment period for the
   44         program, process student applications by a certain
   45         date, verify the eligibility of private schools,
   46         private virtual schools, private tutors, private
   47         tutoring programs, and postsecondary institutions,
   48         publish a list of eligible private schools, submit the
   49         list to participating financial institutions by a
   50         certain date, notify the participating financial
   51         institutions of certain students, establish a toll
   52         free hotline for certain information, establish a
   53         process for reporting to the department violations of
   54         law relating to the program, require participating
   55         private schools, private virtual schools, private
   56         tutors, private tutoring programs, and postsecondary
   57         institutions to certify compliance with the
   58         requirements of the program, compare the list of
   59         participating students with the public school
   60         enrollment lists, maintain a list of nationally norm
   61         referenced assessment tests, select an independent
   62         research organization that must make annual reports
   63         relating to the learning gains of students in the
   64         program, publish certain annual reports on its
   65         website, conduct random visits to certain schools, and
   66         issue a report to the Governor, the President of the
   67         Senate, and the Speaker of the House of
   68         Representatives; requiring that the Chief Financial
   69         Officer process applications from financial
   70         institutions to participate in the program, provide a
   71         list of participating financial institutions to the
   72         department by a certain date each year, conduct random
   73         audits of participating financial institutions, revoke
   74         the eligibility of a financial institutions for
   75         violations of law relating to the program, and make
   76         payments to the accounts of participating students in
   77         specified situations; requiring financial institutions
   78         to apply to the Chief Financial Officer to participate
   79         in the program; providing that a participating
   80         financial institution serves as a trustee for a
   81         student’s account; limiting the fees that may be
   82         charged by a financial institution for its services
   83         under the program; requiring a financial institution
   84         to make timely quarterly payments directly to a
   85         private school, private tutor, private tutoring
   86         program, or postsecondary institution; requiring a
   87         financial institution to make timely quarterly
   88         payments to a selected college savings plan or the
   89         Stanley G. Tate Florida Prepaid College Program;
   90         requiring a financial institution to notify the
   91         department of the identity of certain students at
   92         certain dates; requiring a financial institution to
   93         annually notify the Chief Financial Officer of its
   94         intent to continue to participate in, or intent to
   95         withdraw from, the program; requiring a financial
   96         institution to provide advance notice to the Chief
   97         Financial Officer and parents of students
   98         participating in the program before withdrawing from
   99         the program; specifying criteria and procedures by
  100         which the Commissioner of Education may deny, suspend,
  101         or revoke a private school’s participation in the
  102         program; specifying procedures by which a private
  103         school may challenge the decision of the Commissioner
  104         of Education to deny, suspend, or revoke the school’s
  105         participation in the program; requiring the director
  106         of the Division of Administrative Hearings to expedite
  107         a hearing in certain situations; authorizing the
  108         Commissioner of Education to order participating
  109         financial institutions to immediately suspend payments
  110         from a student’s account to a participating private
  111         school under certain circumstances; providing for
  112         appeal against a payment suspension; authorizing the
  113         Office of Inspector General of the Department of
  114         Education to release otherwise confidential student
  115         information under certain circumstances involving
  116         allegations of fraudulent activity under the program;
  117         specifying a formula to be used in determining the
  118         amount of annual payments made to a student’s account
  119         under the program; providing for the random selection
  120         of applicants to the program who are attending a home
  121         education program or a private school; providing a
  122         calculation to determine the number of such students
  123         who may participate in the program; authorizing the
  124         Legislative Budget Commission to transfer funds in
  125         excess of amounts required to fully fund the accounts
  126         of all participating students to the Florida Education
  127         Finance Program; requiring the department and the
  128         Department of Financial Services to develop an
  129         agreement to assist in the administration of the
  130         program; requiring the State Board of Education to
  131         adopt rules for the Department of Education and the
  132         Commissioner of Education to administer the program;
  133         requiring the Chief Financial Officer to adopt rules
  134         to administer its responsibilities under the program;
  135         providing for the enrollment period and for the number
  136         of eligible students for the 2011-2012 school year;
  137         requiring the department to randomly select
  138         participating students in specified situations;
  139         authorizing the State Board of Education to adopt
  140         emergency rules for the department and the
  141         Commissioner of Education to implement the program;
  142         providing an effective date.
  143  
  144         WHEREAS, the Legislature finds that it has a duty to
  145  provide for a high-quality education for all children residing
  146  within this state, and
  147         WHEREAS, the Legislature finds that it has a duty to
  148  provide for the establishment, maintenance, and operation of
  149  institutions of higher learning, and
  150         WHEREAS, a high-quality education for children is
  151  facilitated by parental involvement in educational choices for
  152  their children, competition among schools and other learning
  153  environments, and the measurement and evaluation of student
  154  learning gains, and
  155         WHEREAS, the Legislature finds that competition between
  156  public schools and private schools will enhance the quality of
  157  education at public schools by encouraging innovation,
  158  flexibility, and efficiency, and
  159         WHEREAS, providing a child with an opportunity to attend a
  160  public school or with funds to pay for private schooling or
  161  tutoring enables the child to access the high-quality education
  162  best suited for his or her specific needs, and
  163         WHEREAS, the Legislature finds that under the right to
  164  religious freedom in the State Constitution, the state may not
  165  prohibit a person from using private funds to pay the cost of
  166  private schooling or tutoring at an institution having any
  167  religious affiliation, NOW, THEREFORE,
  168  
  169  Be It Enacted by the Legislature of the State of Florida:
  170  
  171         Section 1. Section 1002.385, Florida Statutes, is created
  172  to read:
  173         1002.385Education Savings Account Program.—
  174         (1) DEFINITIONS.—As used in this section, the term:
  175         (a) “Account” means an education savings account belonging
  176  to a student who is participating in, or who participated in,
  177  the program. Funds in an account are private funds.
  178         (b) “College savings plan” means a qualified tuition plan
  179  under s. 529 of the Internal Revenue Code which allows the
  180  establishment of an account for a beneficiary for the purpose of
  181  paying the beneficiary’s eligible college expenses.
  182         (c) “Department” means the Department of Education.
  183         (d) “Eligible private postsecondary institution” means a
  184  private postsecondary institution that is a member of the
  185  Independent Colleges and Universities of Florida and is located
  186  in the state.
  187         (e)“Eligible private school” means a private school that
  188  offers an education to students in any grade of kindergarten
  189  through grade 12, is located in this state, and meets the
  190  requirements in subsection (6).
  191         (f) “Financial institution” has the same meaning as defined
  192  in s. 655.005.
  193         (g) “Program” means the Education Savings Account Program.
  194         (2)ELIGIBLE STUDENTS.
  195         (a) A student is eligible to receive funds under the
  196  program if the student resides in this state and:
  197         1.Is eligible to enter kindergarten or first grade;
  198         2.Is the sibling of a student who participates in the
  199  program and who resides in the same household;
  200         3. Was counted as a full-time equivalent student during the
  201  previous state fiscal year for purposes of state per-student
  202  funding; or
  203         4. Attends a home education program or a private school and
  204  was randomly selected to participate in the program pursuant to
  205  subsection (13).
  206         (b)A student remains eligible for the program until he or
  207  she graduates from high school and as long as the student does
  208  not enroll in a public school, charter school, or a virtual
  209  instruction program, excluding the Florida Virtual School, which
  210  receives state funding as a result of the student’s
  211  participation.
  212         (3) INELIGIBLE STUDENTS.—A student may not participate in
  213  the program if he or she:
  214         (a) Is enrolled in a school operating for the purpose of
  215  providing educational services to youth in a commitment program
  216  for the Department of Juvenile Justice;
  217         (b)Participates in a virtual school, correspondence
  218  school, or distance learning program that receives state funding
  219  for the student’s participation;
  220         (c)Is enrolled in the Florida School for the Deaf and the
  221  Blind; or
  222         (d) Is receiving an educational scholarship pursuant to
  223  chapter 1002.
  224         (4)PARENT AND STUDENT OPTIONS.—
  225         (a) A parent may direct the trustee to use the funds in his
  226  or her child’s account, in whole or in combination, to:
  227         1. Pay the tuition and fees for the child to attend an
  228  eligible private school;
  229         2. Pay the tuition and fees for the child to attend an
  230  eligible private virtual school;
  231         3. Pay a private tutor or private tutoring program
  232  qualified under s. 1002.43 for supplemental educational
  233  services;
  234         4. Pay the cost of tuition, books, or fees for the child to
  235  enroll in a dual enrollment program at a state postsecondary
  236  institution;
  237         5.Pay the cost of tuition, books, or fees for the child to
  238  enroll in a dual enrollment program at an eligible private
  239  postsecondary institution;
  240         6. Contribute to the child’s college savings plan; or
  241         7. Make a payment toward the purchase of a contract under
  242  the Stanley G. Tate Florida Prepaid College Program in s.
  243  1009.98.
  244         (b) A parent may direct the trustee to transfer the account
  245  to another financial institution participating in the program as
  246  provided by the Chief Financial Officer by rule.
  247         (c) Within 3 months after the child graduates from high
  248  school or no longer participates in the program, a parent may
  249  direct the trustee to donate any unspent funds in the account to
  250  any institution identified in subparagraphs 1.-5. or to the
  251  school district for the county in which the child last resided
  252  before the child’s participation in the program was terminated.
  253  If a parent fails to identify an institution to which the
  254  trustee must donate the funds, the trustee shall donate the
  255  funds to the school district for the county in which the child
  256  last resided before the child’s participation in the program was
  257  terminated.
  258         (5) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM
  259  PARTICIPATION.—
  260         (a) A parent must annually apply to the department on
  261  behalf of the child during the annual enrollment period. As part
  262  of the enrollment, the parent must identify the educational
  263  option chosen to meet the compulsory attendance requirements of
  264  state law whether through attendance at a private school or
  265  private virtual school, enrollment in a home education program
  266  under s. 1002.41, or a private tutoring program under s.
  267  1002.43.
  268         (b)1.If a parent elects for the child to attend an
  269  eligible private school or private virtual school, the parent or
  270  the child must:
  271         a.Select an eligible private school or private virtual
  272  school and apply for admission.
  273         b.Inform the child’s school district when the parent
  274  withdraws the child to attend the private school or private
  275  virtual school.
  276         c.Remain in attendance in the selected school throughout
  277  the school year unless excused by the school for illness or
  278  other good cause.
  279         d.Comply with the school’s published policies.
  280         e. Ensure that the child participating in the program takes
  281  the nationally norm-referenced assessment tests administered by
  282  the school which are required by the department. The parent may
  283  also choose to have the child participate in a statewide
  284  assessment test pursuant to s. 1008.22. If the parent requests
  285  that the child take a statewide assessment test, the parent is
  286  responsible for transporting the child to the testing site
  287  designated by the school district.
  288         f.Pay the balance of the school’s tuition and fees in
  289  excess of the funds in the child’s account.
  290         2. A parent who chooses to comply with the compulsory
  291  attendance requirements by enrolling his or her child in a
  292  private school or private virtual school may also choose to
  293  enroll the child in a dual enrollment program through a public
  294  postsecondary institution or an eligible private postsecondary
  295  institution and use funds from the child’s account for such
  296  purposes. The parent and child must register and apply for
  297  admission during the institution’s registration or application
  298  period and are responsible for paying the balance of tuition and
  299  fees which is not covered by the payments from the child’s
  300  account.
  301         (c)1.If a parent elects for his or her child to
  302  participate in a home education program, the parent and child
  303  must comply with s. 1002.41.
  304         2.A parent who chooses to comply with the compulsory
  305  attendance requirements by enrolling his or her child in a home
  306  education program may also choose to enroll the child in a dual
  307  enrollment program through a public postsecondary institution or
  308  an eligible private postsecondary institution and use funds from
  309  the child’s account for such purpose. The parent and child must
  310  register and apply for admission during the institution’s
  311  registration or application period and are responsible for
  312  paying the balance of tuition and fees which is not covered by
  313  payments from the child’s account.
  314         (d)1.If a parent elects for the child to receive an
  315  education from an eligible private tutor or private tutoring
  316  program, the parent and the child must comply with this chapter.
  317         2. A parent who chooses to comply with the compulsory
  318  attendance requirements through use of a private tutor or
  319  private tutoring program may also choose to enroll his or her
  320  child in a dual enrollment program through a public
  321  postsecondary institution or an eligible private postsecondary
  322  institution and use funds from the child’s account for such
  323  purpose. The parent and child must register and apply for
  324  admission during the institution’s registration or application
  325  period and are responsible for paying the balance of tuition and
  326  fees which is not covered by payments from the child’s account.
  327         (e) If a parent elects to use any portion of his or her
  328  child’s account as payment for private tutoring through an
  329  eligible supplemental educational services provider, the parent
  330  is responsible for payments to the provider which are not
  331  covered by the child’s account.
  332         (f) If a parent elects for the child to participate in dual
  333  enrollment at a state postsecondary institution or an eligible
  334  private postsecondary institution, the parent or the child must:
  335         1. Register or apply for admission during the institution’s
  336  registration or application period.
  337         2. Inform the child’s school district when the parent
  338  withdraws the child to attend the postsecondary institution.
  339         3. Remain in attendance in the postsecondary institution
  340  throughout the school year unless excused by the institution for
  341  illness or other good cause.
  342         4. Comply with the institution’s published policies.
  343         5. Pay the balance of the postsecondary institution’s
  344  tuition and fees in excess of the funds in the child’s account.
  345         (g) If a parent elects to use any of the funds in the
  346  child’s account to make a contribution to a college savings
  347  plan, the parent must comply with all federal and state laws
  348  related to contributions to college savings plan.
  349         (h) If a parent elects to use any of the funds in the
  350  child’s account toward the purchase of a contract under the
  351  Stanley G. Tate Florida Prepaid College Program, the parent must
  352  comply with all rules and requirements of the program and is
  353  responsible for payments in excess of the funds in the account.
  354  
  355  A child may return to the public school system at any time and
  356  quarterly payments to the child’s account shall cease. The
  357  parent of a child who chooses to return to the public school
  358  system is responsible for the payment of any outstanding balance
  359  owed to the private school, private virtual school, private
  360  tutor, private tutoring program, state postsecondary
  361  institution, or private postsecondary education institution
  362  which was in excess of the funds in the account when payments to
  363  the account ceased.
  364         (6) EDUCATIONAL INSTITUTION ELIGIBILITY AND OBLIGATIONS.—
  365         (a) A private school is eligible to participate in the
  366  program, whether sectarian or nonsectarian, if the school:
  367         1. Is accredited by the Southern Association of Colleges
  368  and Schools or is eligible to participate in the Tax Credit
  369  Scholarship Program or the John M. McKay Scholarships for
  370  Students with Disabilities Program; and
  371         2. Complies with rules adopted by the department for
  372  participation in the program.
  373         (b) A private virtual school is eligible to participate in
  374  the program, whether sectarian or nonsectarian, if the school:
  375         1.Is approved by the department to participate in the
  376  school district virtual instruction program under s. 1002.45;
  377  and
  378         2. Complies with rules adopted by the department for
  379  participation in the program.
  380         (c) A private tutor or private tutoring program is eligible
  381  to participate in the program if the private tutor or private
  382  tutoring program:
  383         1. Is qualified under s. 1002.43;
  384         2. Complies with rules adopted by the department for
  385  participation in the program; and
  386         3. Is a supplemental educational services provider under
  387  the federal Elementary and Secondary Education Act.
  388         (d)All state postsecondary institutions are eligible to
  389  participate in the program and must comply with rules adopted by
  390  the department for participation in the program.
  391         (e) A private postsecondary institution is eligible to
  392  participate in the program, whether sectarian or nonsectarian,
  393  if the institution is a member of the Independent Colleges and
  394  Universities of Florida and complies with rules adopted by the
  395  department for participation in the program.
  396         (7) DEPARTMENT OF EDUCATION OBLIGATIONS.The Department of
  397  Education shall:
  398         (a)Establish an annual enrollment period and a process in
  399  which a parent may apply to enroll his or her child in the
  400  program. The enrollment period shall begin by January 1 and end
  401  by March 1 before the school year in which funding for the
  402  child’s account is sought. All applications must be processed by
  403  May 1 of each year.
  404         (b)Randomly select students attending a home education
  405  program, private school, or private virtual school who are
  406  eligible under subparagraph (2)(a)4. to participate in the
  407  program if the appropriation to the program is sufficient to
  408  fully fund the accounts of all other applicants but is
  409  insufficient to fully fund the accounts of all applicants who
  410  are attending a home education program or private school.
  411         (c)Annually verify the eligibility of private schools,
  412  private virtual schools, private tutors, private tutoring
  413  programs, and postsecondary institutions to participate in the
  414  program and publish a list of eligible schools, tutors, tutoring
  415  programs, and postsecondary institutions.
  416         (d) Annually, by March 15, submit to participating
  417  financial institutions a list of eligible private schools,
  418  private virtual schools, private tutors, private tutoring
  419  programs, and private postsecondary institutions.
  420         (e) Notify participating financial institutions of students
  421  who are approved to participate in the program. The notice must
  422  be made annually, by May 1, after the department processes all
  423  applications to participate in the program.
  424         (f) Establish a toll-free hotline that provides parents and
  425  private schools with information on the program.
  426         (g) Establish a process by which a person may notify the
  427  department of any violation of laws or rules relating to
  428  participation in the program. The department shall conduct an
  429  inquiry of all signed, written, and legally sufficient
  430  complaints that allege a violation of this section, or must make
  431  a referral to the appropriate agency for an investigation. A
  432  complaint is legally sufficient if it states ultimate facts
  433  showing that this section or a rule adopted under this section
  434  has been violated.
  435         (h)Require participating private schools and private
  436  virtual schools to annually certify compliance with the
  437  requirements of the program. The certification must be made in a
  438  sworn and notarized statement by the head of the private school.
  439         (i) Compare the list of students participating in the
  440  program with the public school enrollment lists to avoid
  441  duplicate payments.
  442         (j) Maintain a list of nationally norm-referenced
  443  assessment tests identified by the department which must be
  444  administered by a participating private school or private
  445  virtual school to students participating in the program. The
  446  tests must meet industry standards of quality under rules of the
  447  State Board of Education.
  448         (k) Select an independent research organization, which may
  449  be a public or private entity or university, to which
  450  participating private schools and private virtual schools must
  451  report the scores of participating students on the nationally
  452  norm-referenced assessment tests administered by the schools in
  453  grades 3 through 10.
  454         1. The independent research organization must annually
  455  issue a report to the department which includes:
  456         a. The year-to-year learning gains of students in the
  457  program;
  458         b. To the extent possible, a comparison of the learning
  459  gains of students in the program to the statewide learning gains
  460  of public school students having backgrounds similar to those of
  461  the students in the program. In order to minimize the costs and
  462  time that the independent research organization requires for
  463  analysis and evaluation, the department shall conduct analyses
  464  of assessment data from matched students in public schools and
  465  shall calculate learning gains of control groups using a
  466  methodology outlined in the contract with the independent
  467  research organization; and
  468         c. The aggregate year-to-year learning gains of students in
  469  the program in each participating private school in which there
  470  are at least 30 participating students having scores for tests
  471  for 2 consecutive years at that private school.
  472         2. The sharing and reporting of the learning gains of
  473  students pursuant to this paragraph must be in accordance with
  474  s. 20 U.S.C. s. 1232g, the Family Educational Rights and Privacy
  475  Act, and may be for the sole purpose of creating the annual
  476  report required by subparagraph 1. The department and the
  477  independent research organization shall preserve the
  478  confidentiality of such information as required by law. The
  479  organization may not disaggregate data in its annual report to a
  480  level that will identify individual participating schools,
  481  except as required under sub-subparagraph 1.c., or disclose the
  482  academic level of individual students.
  483         3.The department shall publish the annual report on its
  484  website.
  485         (l)Conduct random site visits to private schools, private
  486  tutors, private tutoring programs, and private postsecondary
  487  institutions participating in the program. During a site visit,
  488  the department may conduct only activities to verify the
  489  information reported by the schools concerning the enrollment
  490  and attendance of students, the credentials of teachers, and the
  491  results of criminal history record checks of teachers.
  492         (m) Annually, by December 15, issue a report to the
  493  Governor, the President of the Senate, and the Speaker of the
  494  House of Representatives describing the implementation of
  495  accountability mechanisms for the program; identifying any
  496  violations of a law or rule governing the program concerning the
  497  enrollment and attendance of students, the credentials of
  498  teachers, or the background screening of teachers; and
  499  describing the corrective actions taken by the department
  500  relating to violations of a law or rule governing the program.
  501         (8)CHIEF FINANCIAL OFFICER OBLIGATIONS.—The Chief
  502  Financial Officer shall:
  503         (a) Process applications from financial institutions
  504  applying to participate in the program.
  505         (b) Provide a list of participating financial institutions
  506  to the department by March 1 of each year.
  507         (c) Conduct random audits of financial institutions
  508  participating in the program to ensure compliance with this
  509  section.
  510         (d) Revoke the eligibility of a financial institution that
  511  fails to comply with its obligations under this section.
  512         (e) Upon notice from the department, make payments to the
  513  accounts of participating students in four equal installments by
  514  September 1, November 1, February 1, and April 1.
  515         (9) OBLIGATIONS OF FINANCIAL INSTITUTIONS.
  516         (a)A financial institution must apply to the Chief
  517  Financial Officer for approval to participate in the program.
  518  The Chief Financial Officer shall approve the application of a
  519  financial institution if the institution agrees to:
  520         1. Serve as a trustee of the funds in a student’s account.
  521         2. Limit its fees imposed on each account to 3 percent or
  522  less of each payment it makes from an account.
  523         3. Make timely quarterly payments directly to the eligible
  524  private school, private virtual school, private tutor, private
  525  tutoring program, or eligible private postsecondary institution
  526  selected by the parent. The amount of the quarterly payment to
  527  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 reported tuition and fee schedule provided to the
  531  department for the educational institution.
  532         4. Make timely quarterly payments directly to a state
  533  postsecondary institution selected by the parent for the payment
  534  of books, tuition, and fees charged for a student’s
  535  participation in a dual enrollment program. The amount of the
  536  quarterly payment to these institutions may not exceed:
  537         a. The amount of the state quarterly payment to the
  538  financial institution, less the financial institution’s fees.
  539         b. The full cost of books, tuition, and fees charged for
  540  the student’s participation in the dual enrollment program.
  541         5.Make timely quarterly payments directly to the selected
  542  college savings plan or the Stanley G. Tate Florida Prepaid
  543  College Program. The amount of such quarterly payment may not
  544  exceed the amount of the state quarterly payment to the
  545  financial institution, less the financial institution’s fees.
  546         6. Notify the department by February 1, July 1, September
  547  1, and December 1 of the identity of students who have accounts
  548  with the institution under this section.
  549         (b) A participating financial institution must annually
  550  notify the Chief Financial Officer of its intent to continue
  551  participating in or its intent to withdraw from the program. A
  552  financial institution must provide 180 days’ notice to the Chief
  553  Financial Officer and to the parents of students having an
  554  account at the institution before it may withdraw from the
  555  program. The institution must also transfer each account to
  556  another participating institution selected by a parent or to
  557  another participating institution randomly selected by the Chief
  558  Financial Officer if the parent fails to timely make a
  559  selection.
  560         (10) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.—
  561         (a)1. The Commissioner of Education shall deny, suspend, or
  562  revoke the participation of a private school, private virtual
  563  school, private tutor, or private tutoring program in the
  564  program if the commissioner determines that the school, tutor,
  565  or tutoring program has failed to comply with this section or
  566  the rules of the department adopted under this section. However,
  567  if the noncompliance is correctable within a reasonable amount
  568  of time and the health, safety, or welfare of the students is
  569  not threatened, the commissioner may issue a notice of
  570  noncompliance that shall provide the school, tutor, or tutoring
  571  program with a timeframe within which to show evidence of
  572  compliance before action may be taken to suspend or revoke the
  573  private school’s participation in the program.
  574         2. The commissioner may deny, suspend, or revoke a private
  575  school’s participation in the program if the commissioner
  576  determines that an owner or operator of the private school is
  577  operating or has operated an educational institution in this
  578  state or another state in a manner that is contrary to the
  579  health, safety, or welfare of the public. In making this
  580  determination, the commissioner may consider factors, including,
  581  but not limited to, acts or omissions by the owner or operator
  582  which led to a previous denial or revocation of participation in
  583  an education scholarship program or an education savings account
  584  program; an owner’s or operator’s failure to reimburse a
  585  student’s account for funds improperly received or retained by a
  586  school; imposition of a prior criminal or civil administrative
  587  sanction related to an owner’s or operator’s management or
  588  operation of an educational institution; or the existence of
  589  other types of criminal proceedings in which the owner or
  590  operator was found guilty of, regardless of adjudication, or
  591  entered a plea of nolo contendere or guilty to any offense
  592  involving fraud, deceit, dishonesty, or moral turpitude.
  593         (b) The commissioner’s determination to deny, suspend, or
  594  revoke a private school’s participation in the program is
  595  subject to the following:
  596         1. The department must notify the private school of the
  597  proposed action in writing by certified mail and regular mail to
  598  the private school’s address of record with the department. The
  599  notice shall state the reasons for the proposed action and
  600  notice of the timelines and procedures set forth in this
  601  paragraph.
  602         2. The private school that is adversely affected by the
  603  proposed action has 15 days following receipt of the notice of
  604  proposed action to file with the clerk of the department a
  605  request for a proceeding pursuant to ss. 120.569 and 120.57. If
  606  the private school is entitled to a hearing under s. 120.57(1),
  607  the department shall forward the request to the Division of
  608  Administrative Hearings.
  609         3. Upon receipt of a request referred pursuant to this
  610  paragraph, the director of the Division of Administrative
  611  Hearings shall expedite the hearing and assign an administrative
  612  law judge who shall commence a hearing within 30 days after the
  613  receipt of the formal written request from the department and
  614  enter a recommended order within 30 days after the hearing or
  615  within 30 days after receipt of the hearing transcript,
  616  whichever is later. Each party may submit written exceptions to
  617  the recommended order within 10 days after the recommended order
  618  is entered. The department shall enter a final order within 30
  619  days after the entry of the recommended order. The provisions of
  620  this subparagraph may be waived upon stipulation by all parties.
  621         (c) The commissioner may order participating financial
  622  institutions to suspend payment of funds from accounts to a
  623  private school if the commissioner finds that probable cause of
  624  any of the following exists:
  625         1. An imminent threat to the health, safety, and welfare of
  626  a student.
  627         2. Fraudulent activity on the part of the private school.
  628  
  629  The commissioner’s order suspending payment pursuant to this
  630  paragraph may be appealed pursuant to the same procedures and
  631  timelines as the notice of proposed action set forth in
  632  paragraph (b).
  633         (11) AUTHORIZED RELEASE OF CONFIDENTIAL INFORMATION.
  634  Notwithstanding s. 1002.22, in incidents of alleged fraudulent
  635  activity relating to participation in the program, the Office of
  636  Inspector General of the department may release personally
  637  identifiable records or reports of students to the following
  638  persons or organizations:
  639         (a)A court of competent jurisdiction in compliance with an
  640  order of that court or the attorney of record in accordance with
  641  a lawfully issued subpoena, consistent with the Family
  642  Educational Rights and Privacy Act, 20 U.S.C. s. 1232g.
  643         (b)A person or entity authorized by a court of competent
  644  jurisdiction in compliance with an order of that court or the
  645  attorney of record pursuant to a lawfully issued subpoena,
  646  consistent with the Family Educational Rights and Privacy Act,
  647  20 U.S.C. s. 1232g.
  648         (c)A person, entity, or authority issuing a subpoena for
  649  law enforcement purposes if the court or other issuing agency
  650  has ordered that the existence or the contents of the subpoena
  651  or the information furnished in response to the subpoena not be
  652  disclosed, consistent with the Family Educational Rights and
  653  Privacy Act, 20 U.S.C. s. 1232g, and 34 C.F.R. s. 99.31.
  654         (12) EDUCATION SAVINGS ACCOUNT AMOUNT.—The total amount of
  655  payments to a participating student’s account for a single
  656  school year shall be equal to 40 percent of the base student
  657  allocation under the Florida Education Finance Program
  658  multiplied by the appropriate cost factor for the educational
  659  program that would have been provided for the student in the
  660  district school to which he or she was assigned, multiplied by
  661  the district cost differential plus the per-student share of
  662  instructional materials funds and other categorical funds as
  663  appropriated in the General Appropriations Act.
  664         (13)RANDOM SELECTION OF PROGRAM PARTICIPANTS.—By April 1
  665  of each year, the department shall randomly select applicants to
  666  participate in the program who are in home education programs
  667  and private schools and who did not participate in the program
  668  during the prior school year. The number of spaces available for
  669  these students shall equal the number of students who enrolled
  670  in the program during the annual enrollment period and were
  671  counted as full-time equivalent students at a public school
  672  during the previous state fiscal year for purposes of state per
  673  student funding. For purposes of this calculation, the number of
  674  new participants in the program who were public school students
  675  does not include kindergarten and first grade students and
  676  siblings of other students participating in the program.
  677         (14) LEGISLATIVE BUDGET COMMISSION.—Each quarter the
  678  Legislative Budget Commission may transfer any funds
  679  appropriated for the program in excess of amounts required to
  680  fully fund the accounts of all participating students to the
  681  Florida Education Finance Program.
  682         (15) ADMINISTRATION; RULES.—
  683         (a) The department and the Department of Financial Services
  684  shall develop a cooperative agreement to assist in the
  685  administration of this section.
  686         (b) The State Board of Education shall adopt rules
  687  necessary for the department and the Commissioner of Education
  688  to administer this section, including rules relating to the
  689  establishment of the enrollment period, enrollment forms, and
  690  reporting requirements for financial institutions and schools.
  691         (c) The Chief Financial Officer shall adopt rules necessary
  692  to administer this section, including rules relating to the
  693  eligibility and auditing of participating financial
  694  institutions.
  695         Section 2. Enrollment period for the 2011-2012 school
  696  year.—
  697         (1) Notwithstanding s. 1002.385(7), Florida Statutes, the
  698  enrollment period to participate in the Education Savings
  699  Account Program for the 2011-2012 school year is July 1 through
  700  July 31. The number of students who may participate is limited
  701  to the number of participants specified in the General
  702  Appropriations Act.
  703         (2)Notwithstanding s. 1002.385(2), Florida Statutes, the
  704  students eligible to participate in the education savings
  705  account program during the 2011-2012 school year are limited to
  706  students identified in s. 1002.385(2)a.1. and 3., Florida
  707  Statutes.
  708         (3) If the Department of Education receives more
  709  applications for eligible students during the enrollment period
  710  for the 2011-2012 school year than the number specified in the
  711  General Appropriations Act, the department shall randomly select
  712  students who may participate in the program.
  713         (4)(a) The State Board of Education may adopt emergency
  714  rules for the department and the Commissioner of Education to
  715  implement the program.
  716         (b) The Chief Financial Officer may adopt emergency rules
  717  to implement the program.
  718         Section 3. This act shall take effect upon becoming a law.