Bill Text: FL S1426 | 2010 | Regular Session | Introduced

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Bill Title: Corporate Tax Credit Scholarship Program [WPSC]

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Education Pre-K - 12 [S1426 Detail]

Download: Florida-2010-S1426-Introduced.html

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Florida Senate - 2010                                    SB 1426 
 
By Senator Wilson 
33-01380-10                                           20101426__ 
1                        A bill to be entitled 
2         An act relating to the Corporate Tax Credit 
3         Scholarship Program; amending s. 220.187, F.S.; 
4         providing an additional purpose that enables students 
5         in specified grades in public schools to receive 
6         certain assistance in attaining grade-level 
7         performance; revising definitions; requiring 
8         scholarship funding organizations to allocate at least 
9         25 percent of their scholarships to public school 
10         students; permitting scholarships of a certain amount 
11         for public school students; requiring public schools 
12         to account for the use of scholarship funds; providing 
13         an effective date. 
14 
15  Be It Enacted by the Legislature of the State of Florida: 
16 
17         Section 1. Section 220.187, Florida Statutes, is amended to 
18  read: 
19         220.187 Credits for contributions to nonprofit scholarship 
20  funding organizations.— 
21         (1) FINDINGS AND PURPOSE.— 
22         (a) The Legislature finds that: 
23         1. It has the inherent power to determine subjects of 
24  taxation for general or particular public purposes. 
25         2. Expanding educational opportunities and improving the 
26  quality of educational services within the state are valid 
27  public purposes that the Legislature may promote using its 
28  sovereign power to determine subjects of taxation and exemptions 
29  from taxation. 
30         3. Ensuring that all parents, regardless of means, may 
31  exercise and enjoy their basic right to educate their children 
32  as they see fit is a valid public purpose that the Legislature 
33  may promote using its sovereign power to determine subjects of 
34  taxation and exemptions from taxation. 
35         4. Expanding educational opportunities and the healthy 
36  competition they promote are critical to improving the quality 
37  of education in the state and to ensuring that all children 
38  receive the high-quality education to which they are entitled. 
39         (b) The purpose of this section is to: 
40         1. Enable taxpayers to make private, voluntary 
41  contributions to nonprofit scholarship-funding organizations in 
42  order to promote the general welfare. 
43         2. Provide taxpayers who wish to help parents with limited 
44  resources exercise their basic right to educate their children 
45  as they see fit with a means to do so. 
46         3. Promote the general welfare by expanding educational 
47  opportunities for children of families that have limited 
48  financial resources. 
49         4. Enable children in this state to achieve a greater level 
50  of excellence in their education. 
51         5. Improve the quality of education in this state, both by 
52  expanding educational opportunities for children and by creating 
53  incentives for schools to achieve excellence. 
54         6. Enable students in grades 2, 5, 6, 8, and 9 in public 
55  schools to receive tutoring, remediation, computers, and other 
56  educational aids necessary to attain grade-level performance. 
57         (2) DEFINITIONS.—As used in this section, the term: 
58         (a) “Department” means the Department of Revenue. 
59         (b) “Direct certification list” means the certified list of 
60  children who qualify for the Food Stamp Program, the Temporary 
61  Assistance to Needy Families Program, or the Food Distribution 
62  Program on Indian Reservations provided to the Department of 
63  Education by the Department of Children and Family Services. 
64         (c) “Eligible contribution” means a monetary contribution 
65  from a taxpayer, subject to the restrictions provided in this 
66  section, to an eligible nonprofit scholarship-funding 
67  organization. The taxpayer making the contribution may not 
68  designate a specific child as the beneficiary of the 
69  contribution. 
70         (d) “Eligible nonprofit scholarship-funding organization” 
71  means a charitable organization that: 
72         1. Is exempt from federal income tax pursuant to s. 
73  501(c)(3) of the Internal Revenue Code; 
74         2. Is a Florida entity formed under chapter 607, chapter 
75  608, or chapter 617 and whose principal office is located in the 
76  state; and 
77         3. Complies with the provisions of subsection (6). 
78         (e) “Eligible private school” means a private school, as 
79  defined in s. 1002.01(2), or a public school located in Florida 
80  which offers an education to students in any grades K-12 and 
81  that meets the requirements in subsection (8). 
82         (f) “Owner or operator” includes: 
83         1. An owner, president, officer, or director of an eligible 
84  nonprofit scholarship-funding organization or a person with 
85  equivalent decisionmaking authority over an eligible nonprofit 
86  scholarship-funding organization. 
87         2. An owner, operator, superintendent, or principal of an 
88  eligible private school or a person who has with equivalent 
89  decisionmaking authority over an eligible private school. 
90         (3) PROGRAM; SCHOLARSHIP ELIGIBILITY.—The Florida Tax 
91  Credit Scholarship Program is established. A student is eligible 
92  for a Florida tax credit scholarship under this section or s. 
93  624.51055 if the student qualifies for free or reduced-price 
94  school lunches under the National School Lunch Act or is on the 
95  direct certification list and: 
96         (a) Was counted as a full-time equivalent student during 
97  the previous state fiscal year for purposes of state per-student 
98  funding; 
99         (b) Received a scholarship from an eligible nonprofit 
100  scholarship-funding organization or from the State of Florida 
101  during the previous school year; 
102         (c) Is eligible to enter kindergarten or first grade; or 
103         (d) Is a student in grade 2, grade 5, grade 6, grade 8, or 
104  grade 9 in an eligible public school; or 
105         (e)(d) Is currently placed, or during the previous state 
106  fiscal year was placed, in foster care as defined in s. 39.01. 
107 
108  Contingent upon available funds, a student may continue in the 
109  scholarship program as long as the student’s household income 
110  level does not exceed 200 percent of the federal poverty level. 
111  A sibling of a student who is continuing in the program and 
112  resides in the same household as the student shall also be 
113  eligible as a first-time tax credit scholarship recipient as 
114  long as the student’s and sibling’s household income level does 
115  not exceed 200 percent of the federal poverty level. Household 
116  income for purposes of a student who is currently in foster care 
117  as defined in s. 39.01 shall consist only of the income that may 
118  be considered in determining whether he or she qualifies for 
119  free or reduced-price school lunches under the National School 
120  Lunch Act. 
121         (4) SCHOLARSHIP PROHIBITIONS.—A student is not eligible for 
122  a scholarship while he or she is: 
123         (a) Enrolled in a school operating for the purpose of 
124  providing educational services to youth in Department of 
125  Juvenile Justice commitment programs; 
126         (b) Receiving a scholarship from another eligible nonprofit 
127  scholarship-funding organization under this section; 
128         (c) Receiving an educational scholarship pursuant to 
129  chapter 1002; 
130         (d) Participating in a home education program as defined in 
131  s. 1002.01(1); 
132         (e) Participating in a private tutoring program pursuant to 
133  s. 1002.43; 
134         (f) Participating in a virtual school, correspondence 
135  school, or distance learning program that receives state funding 
136  pursuant to the student’s participation unless the participation 
137  is limited to no more than two courses per school year; or 
138         (g) Enrolled in the Florida School for the Deaf and the 
139  Blind. 
140         (5) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX CREDITS; 
141  LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.— 
142         (a) There is allowed a credit of 100 percent of an eligible 
143  contribution against any tax due for a taxable year under this 
144  chapter. However, such a credit may not exceed 75 percent of the 
145  tax due under this chapter for the taxable year, after the 
146  application of any other allowable credits by the taxpayer. The 
147  credit granted by this section shall be reduced by the 
148  difference between the amount of federal corporate income tax 
149  taking into account the credit granted by this section and the 
150  amount of federal corporate income tax without application of 
151  the credit granted by this section. 
152         (b) For each state fiscal year, the total amount of tax 
153  credits and carryforward of tax credits which may be granted 
154  under this section and s. 624.51055 is $118 million. 
155         (c) A taxpayer who files a Florida consolidated return as a 
156  member of an affiliated group pursuant to s. 220.131(1) may be 
157  allowed the credit on a consolidated return basis; however, the 
158  total credit taken by the affiliated group is subject to the 
159  limitation established under paragraph (a). 
160         (d) Effective for tax years beginning January 1, 2006, a 
161  taxpayer may rescind all or part of its allocated tax credit 
162  under this section. The amount rescinded shall become available 
163  for purposes of the cap for that state fiscal year under this 
164  section to an eligible taxpayer as approved by the department if 
165  the taxpayer receives notice from the department that the 
166  rescindment has been accepted by the department and the taxpayer 
167  has not previously rescinded any or all of its tax credit 
168  allocation under this section more than once in the previous 3 
169  tax years. Any amount rescinded under this paragraph shall 
170  become available to an eligible taxpayer on a first-come, first 
171  served basis based on tax credit applications received after the 
172  date the rescindment is accepted by the department. 
173         (e) A taxpayer who is eligible to receive the credit 
174  provided for in s. 624.51055 is not eligible to receive the 
175  credit provided by this section. 
176         (6) OBLIGATIONS OF ELIGIBLE NONPROFIT SCHOLARSHIP-FUNDING 
177  ORGANIZATIONS.—An eligible nonprofit scholarship-funding 
178  organization: 
179         (a) Must comply with the antidiscrimination provisions of 
180  42 U.S.C. s. 2000d. 
181         (b) Must comply with the following background check 
182  requirements: 
183         1. All owners and operators as defined in subparagraph 
184  (2)(f)1. are, upon employment or engagement to provide services, 
185  subject to level 2 background screening as provided under 
186  chapter 435. The fingerprints for the background screening must 
187  be electronically submitted to the Department of Law Enforcement 
188  and can be taken by an authorized law enforcement agency or by 
189  an employee of the eligible nonprofit scholarship-funding 
190  organization or a private company who is trained to take 
191  fingerprints. However, the complete set of fingerprints of an 
192  owner or operator may not be taken by the owner or operator. The 
193  results of the state and national criminal history check shall 
194  be provided to the Department of Education for screening under 
195  chapter 435. The cost of the background screening may be borne 
196  by the eligible nonprofit scholarship-funding organization or 
197  the owner or operator. 
198         2. Every 5 years following employment or engagement to 
199  provide services or association with an eligible nonprofit 
200  scholarship-funding organization, each owner or operator must 
201  meet level 2 screening standards as described in s. 435.04, at 
202  which time the nonprofit scholarship-funding organization shall 
203  request the Department of Law Enforcement to forward the 
204  fingerprints to the Federal Bureau of Investigation for level 2 
205  screening. If the fingerprints of an owner or operator are not 
206  retained by the Department of Law Enforcement under subparagraph 
207  3., the owner or operator must electronically file a complete 
208  set of fingerprints with the Department of Law Enforcement. Upon 
209  submission of fingerprints for this purpose, the eligible 
210  nonprofit scholarship-funding organization shall request that 
211  the Department of Law Enforcement forward the fingerprints to 
212  the Federal Bureau of Investigation for level 2 screening, and 
213  the fingerprints shall be retained by the Department of Law 
214  Enforcement under subparagraph 3. 
215         3. Beginning July 1, 2007, All fingerprints submitted to 
216  the Department of Law Enforcement as required by this paragraph 
217  must be retained by the Department of Law Enforcement in a 
218  manner approved by rule and entered in the statewide automated 
219  fingerprint identification system authorized by s. 943.05(2)(b). 
220  The fingerprints must thereafter be available for all purposes 
221  and uses authorized for arrest fingerprint cards entered in the 
222  statewide automated fingerprint identification system pursuant 
223  to s. 943.051. 
224         4. Beginning July 1, 2007, The Department of Law 
225  Enforcement shall search all arrest fingerprint cards received 
226  under s. 943.051 against the fingerprints retained in the 
227  statewide automated fingerprint identification system under 
228  subparagraph 3. Any arrest record that is identified with an 
229  owner’s or operator’s fingerprints must be reported to the 
230  Department of Education. The Department of Education shall 
231  participate in this search process by paying an annual fee to 
232  the Department of Law Enforcement and by informing the 
233  Department of Law Enforcement of any change in the employment, 
234  engagement, or association status of the owners or operators 
235  whose fingerprints are retained under subparagraph 3. The 
236  Department of Law Enforcement shall adopt a rule setting the 
237  amount of the annual fee to be imposed upon the Department of 
238  Education for performing these services and establishing the 
239  procedures for the retention of owner and operator fingerprints 
240  and the dissemination of search results. The fee may be borne by 
241  the owner or operator of the nonprofit scholarship-funding 
242  organization. 
243         5. A nonprofit scholarship-funding organization whose owner 
244  or operator fails the level 2 background screening shall not be 
245  eligible to provide scholarships under this section. 
246         6. A nonprofit scholarship-funding organization whose owner 
247  or operator in the last 7 years has filed for personal 
248  bankruptcy or corporate bankruptcy in a corporation of which he 
249  or she owned more than 20 percent shall not be eligible to 
250  provide scholarships under this section. 
251         (c) Must not have an owner or operator who owns or operates 
252  an eligible private school that is participating in the 
253  scholarship program. 
254         (d) Must provide scholarships, from eligible contributions, 
255  to eligible students for the cost of: 
256         1. Tuition and fees for an eligible private school; or 
257         2. Tutoring, remediation, computers, and other educational 
258  aids necessary to attain grade-level performance at a public 
259  school. Transportation to a Florida public school that is 
260  located outside the district in which the student resides or to 
261  a lab school as defined in s. 1002.32. 
262         (e) Must give priority to eligible students who received a 
263  scholarship from an eligible nonprofit scholarship-funding 
264  organization or from the State of Florida during the previous 
265  school year. 
266         (f) Must provide a scholarship to an eligible student on a 
267  first-come, first-served basis unless the student qualifies for 
268  priority pursuant to paragraph (e). 
269         (g) May not restrict or reserve scholarships for use at a 
270  particular private school or provide scholarships to a child of 
271  an owner or operator. 
272         (h) Must allow an eligible student to attend any eligible 
273  private school and must allow a parent to transfer a scholarship 
274  during a school year to any other eligible private school of the 
275  parent’s choice. 
276         (i)1. May use up to 3 percent of eligible contributions 
277  received during the state fiscal year in which such 
278  contributions are collected for administrative expenses if the 
279  organization has operated under this section for at least 3 
280  state fiscal years and did not have any negative financial 
281  findings in its most recent audit under paragraph (l). Such 
282  administrative expenses must be reasonable and necessary for the 
283  organization’s management and distribution of eligible 
284  contributions under this section. No more than one-third of the 
285  funds authorized for administrative expenses under this 
286  subparagraph may be used for expenses related to the recruitment 
287  of contributions from taxpayers. 
288         2. Must expend for annual or partial-year scholarships an 
289  amount equal to or greater than 75 percent of the net eligible 
290  contributions remaining after administrative expenses during the 
291  state fiscal year in which such contributions are collected. No 
292  more than 25 percent of such net eligible contributions may be 
293  carried forward to the following state fiscal year. Any amounts 
294  carried forward shall be expended for annual or partial-year 
295  scholarships in the following state fiscal year. Net eligible 
296  contributions remaining on June 30 of each year which that are 
297  in excess of the 25 percent that may be carried forward shall be 
298  returned to the State Treasury for deposit in the General 
299  Revenue Fund. 
300         3. Must, before granting a scholarship for an academic 
301  year, document each scholarship student’s eligibility for that 
302  academic year. A scholarship-funding organization may not grant 
303  multiyear scholarships in one approval process. 
304         (j) Must maintain separate accounts for scholarship funds 
305  and operating funds. 
306         (k) With the prior approval of the Department of Education, 
307  may transfer funds to another eligible nonprofit scholarship 
308  funding organization if additional funds are required to meet 
309  scholarship demand at the receiving nonprofit scholarship 
310  funding organization. A transfer shall be limited to the greater 
311  of $500,000 or 20 percent of the total contributions received by 
312  the nonprofit scholarship-funding organization making the 
313  transfer. All transferred funds must be deposited by the 
314  receiving nonprofit scholarship-funding organization into its 
315  scholarship accounts. All transferred amounts received by any 
316  nonprofit scholarship-funding organization must be separately 
317  disclosed in the annual financial and compliance audit required 
318  in this section. 
319         (l) Must provide to the Auditor General and the Department 
320  of Education an annual financial and compliance audit of its 
321  accounts and records conducted by an independent certified 
322  public accountant and in accordance with rules adopted by the 
323  Auditor General. The audit must be conducted in compliance with 
324  generally accepted auditing standards and must include a report 
325  on financial statements presented in accordance with generally 
326  accepted accounting principles set forth by the American 
327  Institute of Certified Public Accountants for not-for-profit 
328  organizations and a determination of compliance with the 
329  statutory eligibility and expenditure requirements set forth in 
330  this section. Audits must be provided to the Auditor General and 
331  the Department of Education within 180 days after completion of 
332  the eligible nonprofit scholarship-funding organization’s fiscal 
333  year. 
334         (m) Must prepare and submit quarterly reports to the 
335  Department of Education pursuant to paragraph (9)(m). In 
336  addition, an eligible nonprofit scholarship-funding organization 
337  must submit in a timely manner any information requested by the 
338  Department of Education relating to the scholarship program. 
339         (n) Must allocate at least 25 percent of its scholarships 
340  to public school students. 
341 
342  Any and all information and documentation provided to the 
343  Department of Education and the Auditor General relating to the 
344  identity of a taxpayer that provides an eligible contribution 
345  under this section shall remain confidential at all times in 
346  accordance with s. 213.053. 
347         (7) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM 
348  PARTICIPATION.— 
349         (a) The parent must select an eligible private school and 
350  apply for the admission of his or her child. 
351         (b) The parent must inform the child’s school district when 
352  the parent withdraws his or her child to attend an eligible 
353  private school. 
354         (c) Any student participating in the scholarship program 
355  must remain in attendance throughout the school year unless 
356  excused by the school for illness or other good cause. 
357         (d) Each parent and each student has an obligation to the 
358  private school to comply with the private school’s published 
359  policies. 
360         (e) The parent shall ensure that the student participating 
361  in the scholarship program takes the norm-referenced assessment 
362  offered by the private school. The parent may also choose to 
363  have the student participate in the statewide assessments 
364  pursuant to s. 1008.22. If the parent requests that the student 
365  participating in the scholarship program take statewide 
366  assessments pursuant to s. 1008.22, the parent is responsible 
367  for transporting the student to the assessment site designated 
368  by the school district. 
369         (f) Upon receipt of a scholarship warrant from the eligible 
370  nonprofit scholarship-funding organization, the parent to whom 
371  the warrant is made must restrictively endorse the warrant to 
372  the private school for deposit into the account of the private 
373  school. The parent may not designate any entity or individual 
374  associated with the participating private school as the parent’s 
375  attorney in fact to endorse a scholarship warrant. A participant 
376  who fails to comply with this paragraph forfeits the 
377  scholarship. 
378         (8) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible 
379  private school may be a public school or sectarian or 
380  nonsectarian private school and must: 
381         (a) Comply with all requirements for private schools 
382  participating in state school choice scholarship programs 
383  pursuant to s. 1002.421 if the school is a private school. 
384         (b) Provide to the eligible nonprofit scholarship-funding 
385  organization, upon request, all documentation required for the 
386  student’s participation, including the private school’s and 
387  student’s fee schedules. 
388         (c) Be academically accountable to the parent for meeting 
389  the educational needs of the student by: 
390         1. At a minimum, annually providing to the parent a written 
391  explanation of the student’s progress. 
392         2. Annually administering or making provision for students 
393  participating in the scholarship program to take one of the 
394  nationally norm-referenced tests identified by the Department of 
395  Education. Students with disabilities for whom standardized 
396  testing is not appropriate are exempt from this requirement. A 
397  participating private school must report a student’s scores to 
398  the parent and to the independent research organization selected 
399  by the Department of Education as described in paragraph (9)(j). 
400         3. Cooperating with the scholarship student whose parent 
401  chooses to have the student participate in the statewide 
402  assessments pursuant to s. 1008.22. 
403         (d) Employ or contract with teachers who have regular and 
404  direct contact with each student receiving a scholarship under 
405  this section at the school’s physical location. 
406         (e) Provide a monthly accounting of the use of the 
407  scholarship funds to the legal guardian of each scholarship 
408  student in a public school. 
409 
410  The inability of a private school to meet the requirements of 
411  this subsection shall constitute a basis for the ineligibility 
412  of the private school to participate in the scholarship program 
413  as determined by the Department of Education. 
414         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of 
415  Education shall: 
416         (a) Annually submit to the department, by March 15, a list 
417  of eligible nonprofit scholarship-funding organizations that 
418  meet the requirements of paragraph (2)(d). 
419         (b) Annually verify the eligibility of nonprofit 
420  scholarship-funding organizations that meet the requirements of 
421  paragraph (2)(d). 
422         (c) Annually verify the eligibility of private schools that 
423  meet the requirements of subsection (8). 
424         (d) Annually verify the eligibility of expenditures as 
425  provided in paragraph (6)(d) using the audit required by 
426  paragraph (6)(l). 
427         (e) Establish a toll-free hotline that provides parents and 
428  private schools with information on participation in the 
429  scholarship program. 
430         (f) Establish a process by which individuals may notify the 
431  Department of Education of any violation by a parent, private 
432  school, or school district of state laws relating to program 
433  participation. The Department of Education shall conduct an 
434  inquiry of any written complaint of a violation of this section, 
435  or make a referral to the appropriate agency for an 
436  investigation, if the complaint is signed by the complainant and 
437  is legally sufficient. A complaint is legally sufficient if it 
438  contains ultimate facts that show that a violation of this 
439  section or any rule adopted by the State Board of Education has 
440  occurred. In order to determine legal sufficiency, the 
441  Department of Education may require supporting information or 
442  documentation from the complainant. A department inquiry is not 
443  subject to the requirements of chapter 120. 
444         (g) Require an annual, notarized, sworn compliance 
445  statement by participating private schools certifying compliance 
446  with state laws and shall retain such records. 
447         (h) Cross-check the list of participating scholarship 
448  students with the public school enrollment lists to avoid 
449  duplication. 
450         (i) Maintain a list of nationally norm-referenced tests 
451  identified for purposes of satisfying the testing requirement in 
452  subparagraph (8)(c)2. The tests must meet industry standards of 
453  quality in accordance with State Board of Education rule. 
454         (j) Select an independent research organization, which may 
455  be a public or private entity or university, to which 
456  participating private schools must report the scores of 
457  participating students on the nationally norm-referenced tests 
458  administered by the private school. The independent research 
459  organization must annually report to the Department of Education 
460  on the year-to-year improvements of participating students. The 
461  independent research organization must analyze and report 
462  student performance data in a manner that protects the rights of 
463  students and parents as mandated in 20 U.S.C. s. 1232g, the 
464  Family Educational Rights and Privacy Act, and must not 
465  disaggregate data to a level that will disclose the academic 
466  level of individual students or of individual schools. To the 
467  extent possible, the independent research organization must 
468  accumulate historical performance data on students from the 
469  Department of Education and private schools to describe baseline 
470  performance and to conduct longitudinal studies. To minimize 
471  costs and reduce time required for third-party analysis and 
472  evaluation, the Department of Education shall conduct analyses 
473  of matched students from public school assessment data and 
474  calculate control group learning gains using an agreed-upon 
475  methodology outlined in the contract with the third-party 
476  evaluator. The sharing of student data must be in accordance 
477  with requirements of 20 U.S.C. s. 1232g, the Family Educational 
478  Rights and Privacy Act, and shall be for the sole purpose of 
479  conducting the evaluation. All parties must preserve the 
480  confidentiality of such information as required by law. 
481         (k) Notify an eligible nonprofit scholarship-funding 
482  organization of any of the organization’s identified students 
483  who are receiving educational scholarships pursuant to chapter 
484  1002. 
485         (l) Notify an eligible nonprofit scholarship-funding 
486  organization of any of the organization’s identified students 
487  who are receiving tax credit scholarships from other eligible 
488  nonprofit scholarship-funding organizations. 
489         (m) Require quarterly reports by an eligible nonprofit 
490  scholarship-funding organization regarding the number of 
491  students participating in the scholarship program, the private 
492  schools at which the students are enrolled, and other 
493  information that deemed necessary by the Department of Education 
494  considers necessary. 
495         (n)1. Conduct random site visits to private schools 
496  participating in the Florida Tax Credit Scholarship Program. The 
497  purpose of the site visits is solely to verify the information 
498  reported by the schools concerning the enrollment and attendance 
499  of students, the credentials of teachers, background screening 
500  of teachers, and teachers’ fingerprinting results, and to 
501  account for the use of funds at public schools. The Department 
502  of Education may not make more than seven random site visits 
503  each year and may not make more than one random site visit each 
504  year to the same private school. 
505         2. Annually, by December 15, report to the Governor, the 
506  President of the Senate, and the Speaker of the House of 
507  Representatives the Department of Education’s actions with 
508  respect to implementing accountability in the scholarship 
509  program under this section and s. 1002.421, any substantiated 
510  allegations or violations of law or rule by an eligible private 
511  school under this program concerning the enrollment and 
512  attendance of students, the credentials of teachers, background 
513  screening of teachers, and teachers’ fingerprinting results and 
514  the corrective action taken by the Department of Education. 
515         (o) Provide a process to match the direct certification 
516  list with the scholarship application data submitted by any 
517  nonprofit scholarship-funding organization eligible to receive 
518  the 3-percent administrative allowance under paragraph (6)(i). 
519         (10) SCHOOL DISTRICT OBLIGATIONS; PARENTAL OPTIONS.—Upon 
520  the request of any eligible nonprofit scholarship-funding 
521  organization, a school district shall inform all households 
522  within the district receiving free or reduced-priced meals under 
523  the National School Lunch Act of their eligibility to apply for 
524  a tax credit scholarship. The form of such notice shall be 
525  provided by the eligible nonprofit scholarship-funding 
526  organization, and the district shall include the provided form, 
527  if requested by the organization, in any normal correspondence 
528  with eligible households. If an eligible nonprofit scholarship 
529  funding organization requests a special communication to be 
530  issued to households within the district receiving free or 
531  reduced-price meals under the National School Lunch Act, the 
532  organization shall reimburse the district for the cost of 
533  postage. Such notice is limited to once a year. 
534         (11) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.— 
535         (a) The Commissioner of Education shall deny, suspend, or 
536  revoke a private school’s participation in the scholarship 
537  program if it is determined that the private school has failed 
538  to comply with the provisions of this section. However, if in 
539  instances in which the noncompliance is correctable within a 
540  reasonable amount of time and in which the health, safety, or 
541  welfare of the students is not threatened, the commissioner may 
542  issue a notice of noncompliance that shall provide the private 
543  school with a timeframe within which to provide evidence of 
544  compliance before prior to taking action to suspend or revoke 
545  the private school’s participation in the scholarship program. 
546         (b) The commissioner’s determination is subject to the 
547  following: 
548         1. If the commissioner intends to deny, suspend, or revoke 
549  a private school’s participation in the scholarship program, the 
550  Department of Education shall notify the private school of such 
551  proposed action in writing by certified mail and regular mail to 
552  the private school’s address of record with the Department of 
553  Education. The notification must shall include the reasons for 
554  the proposed action and notice of the timelines and procedures 
555  set forth in this paragraph. 
556         2. The private school that is adversely affected by the 
557  proposed action shall have 15 days following from receipt of the 
558  notice of proposed action to file with the Department of 
559  Education’s agency clerk a request for a proceeding pursuant to 
560  ss. 120.569 and 120.57. If the private school is entitled to a 
561  hearing under s. 120.57(1), the Department of Education shall 
562  forward the request to the Division of Administrative Hearings. 
563         3. Upon receipt of a request referred pursuant to this 
564  paragraph, the director of the Division of Administrative 
565  Hearings shall expedite the hearing and assign an administrative 
566  law judge who shall commence a hearing within 30 days after the 
567  receipt of the formal written request by the division and enter 
568  a recommended order within 30 days after the hearing or within 
569  30 days after receipt of the hearing transcript, whichever is 
570  later. Each party shall be allowed 10 days in which to submit 
571  written exceptions to the recommended order. A final order shall 
572  be entered by the agency within 30 days after the entry of a 
573  recommended order. The provisions of this subparagraph may be 
574  waived upon stipulation by all parties. 
575         (c) The commissioner may immediately suspend payment of 
576  scholarship funds if it is determined that there is probable 
577  cause to believe that there is: 
578         1. An imminent threat to the health, safety, and welfare of 
579  the students; or 
580         2. Fraudulent activity on the part of the private school. 
581  Notwithstanding s. 1002.22, in incidents of alleged fraudulent 
582  activity pursuant to this section, the Department of Education’s 
583  Office of Inspector General is authorized to release personally 
584  identifiable records or reports of students to the following 
585  persons or organizations: 
586         a. A court of competent jurisdiction in compliance with an 
587  order of that court or the attorney of record in accordance with 
588  a lawfully issued subpoena, consistent with the Family 
589  Educational Rights and Privacy Act, 20 U.S.C. s. 1232g. 
590         b. A person or entity authorized by a court of competent 
591  jurisdiction in compliance with an order of that court or the 
592  attorney of record pursuant to a lawfully issued subpoena, 
593  consistent with the Family Educational Rights and Privacy Act, 
594  20 U.S.C. s. 1232g. 
595         c. Any person, entity, or authority issuing a subpoena for 
596  law enforcement purposes when the court or other issuing agency 
597  has ordered that the existence or the contents of the subpoena 
598  or the information furnished in response to the subpoena not be 
599  disclosed, consistent with the Family Educational Rights and 
600  Privacy Act, 20 U.S.C. s. 1232g, and 34 C.F.R. s. 99.31. 
601 
602  The commissioner’s order suspending payment pursuant to this 
603  paragraph may be appealed pursuant to the same procedures and 
604  timelines as the notice of proposed action set forth in 
605  paragraph (b). 
606         (12) SCHOLARSHIP AMOUNT AND PAYMENT.— 
607         (a) The amount of a scholarship provided to any student for 
608  any single school year by an eligible nonprofit scholarship 
609  funding organization from eligible contributions may shall be 
610  for total costs authorized under paragraph (6)(d), not to exceed 
611  the following annual limits: 
612         1. Four Three thousand nine hundred fifty dollars for a 
613  scholarship awarded to a student enrolled in an eligible private 
614  school for the 2008-2009 state fiscal year and each fiscal year 
615  thereafter. 
616         2. Four thousand Five hundred dollars for a scholarship 
617  awarded to a student enrolled in a Florida public school that is 
618  located outside the district in which the student resides or in 
619  a lab school as defined in s. 1002.32. 
620         (b) Payment of the scholarship by the eligible nonprofit 
621  scholarship-funding organization shall be by individual warrant 
622  made payable to the student’s parent. If the parent chooses that 
623  his or her child attend an eligible private school, The warrant 
624  must be delivered by the eligible nonprofit scholarship-funding 
625  organization to the private school of the parent’s choice, and 
626  the parent shall restrictively endorse the warrant to the 
627  private school. An eligible nonprofit scholarship-funding 
628  organization shall ensure that the parent to whom the warrant is 
629  made restrictively endorsed the warrant to the private school 
630  for deposit into the account of the private school. 
631         (c) An eligible nonprofit scholarship-funding organization 
632  shall obtain verification from the private school of a student’s 
633  continued attendance at the school for each period covered by a 
634  scholarship payment. 
635         (d) Payment of the scholarship shall be made by the 
636  eligible nonprofit scholarship-funding organization no less 
637  frequently than on a quarterly basis. 
638         (13) ADMINISTRATION; RULES.— 
639         (a) If the credit granted pursuant to this section is not 
640  fully used in any one year because of insufficient tax liability 
641  on the part of the corporation, the unused amount may be carried 
642  forward for a period not to exceed 3 years; however, any 
643  taxpayer that seeks to carry forward an unused amount of tax 
644  credit must submit an application for allocation of tax credits 
645  or carryforward credits as required in paragraph (d) in the year 
646  that the taxpayer intends to use the carryforward. This 
647  carryforward applies to all approved contributions made after 
648  January 1, 2002. A taxpayer may not convey, assign, or transfer 
649  the credit authorized by this section to another entity unless 
650  all of the assets of the taxpayer are conveyed, assigned, or 
651  transferred in the same transaction. 
652         (b) An application for a tax credit pursuant to this 
653  section shall be submitted to the department on forms 
654  established by rule of the department. 
655         (c) The department and the Department of Education shall 
656  develop a cooperative agreement to assist in the administration 
657  of this section. 
658         (d) The department shall adopt rules necessary to 
659  administer this section, including rules establishing 
660  application forms and procedures and governing the allocation of 
661  tax credits and carryforward credits under this section on a 
662  first-come, first-served basis. 
663         (e) The State Board of Education shall adopt rules pursuant 
664  to ss. 120.536(1) and 120.54 to administer this section as it 
665  relates to the roles of the Department of Education and the 
666  Commissioner of Education. 
667         (14) DEPOSITS OF ELIGIBLE CONTRIBUTIONS.—All eligible 
668  contributions received by an eligible nonprofit scholarship 
669  funding organization shall be deposited in a manner consistent 
670  with s. 17.57(2). 
671         (15) PRESERVATION OF CREDIT.—If any provision or portion of 
672  subsection (5) or the application thereof to any person or 
673  circumstance is held unconstitutional by any court or is 
674  otherwise declared invalid, the unconstitutionality or 
675  invalidity shall not affect any credit earned under subsection 
676  (5) by any taxpayer with respect to any contribution paid to an 
677  eligible nonprofit scholarship-funding organization before the 
678  date of a determination of unconstitutionality or invalidity. 
679  Such credit shall be allowed at such time and in such a manner 
680  as if a determination of unconstitutionality or invalidity had 
681  not been made, provided that nothing in this subsection by 
682  itself or in combination with any other provision of law shall 
683  result in the allowance of any credit to any taxpayer in excess 
684  of one dollar of credit for each dollar paid to an eligible 
685  nonprofit scholarship-funding organization. 
686         Section 2. This act shall take effect July 1, 2010.