Bill Text: FL S1572 | 2017 | Regular Session | Introduced
Bill Title: Education Savings Account Program
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2017-05-05 - Died in Education [S1572 Detail]
Download: Florida-2017-S1572-Introduced.html
Florida Senate - 2017 SB 1572 By Senator Bean 4-01781-17 20171572__ 1 A bill to be entitled 2 An act relating to the Education Savings Account 3 Program; creating s. 1002.387, F.S.; defining terms; 4 specifying criteria for student eligibility and 5 student ineligibility for the program; authorizing a 6 parent to direct a financial institution trustee of 7 his or her child’s account to use funds for specified 8 costs of attending specified private schools or 9 programs, for participating in a dual enrollment 10 program, or to make a contribution to the child’s 11 college savings plan or to a contract under the 12 Stanley G. Tate Florida Prepaid College Program; 13 requiring a financial institution to transfer an 14 account to another participating financial institution 15 upon the request of a parent as provided by the Chief 16 Financial Officer by rule; providing for the 17 distribution of unspent program funds; requiring a 18 parent to apply for the program to the Department of 19 Education; specifying responsibilities of a parent or 20 student for using funds in an account to attend a 21 private school or private virtual school; requiring 22 certain students to take norm-referenced tests 23 required by the department; specifying 24 responsibilities of a parent or student for using 25 funds in an account to hire a private tutor or private 26 tutoring program and for participating in a dual 27 enrollment program; specifying eligibility criteria 28 for private schools, private tutors, private tutoring 29 programs, and private postsecondary institutions to 30 participate in the program; providing that all public 31 postsecondary institutions are eligible to participate 32 in the program; providing duties of the department; 33 requiring the department to process student 34 applications, submit a list of eligible institutions 35 to participating financial institutions, notify the 36 financial institutions of students approved to 37 participate in the program, and submit a report to the 38 Governor and the Legislature by specified dates; 39 providing duties of the Chief Financial Officer; 40 requiring the Chief Financial Officer to provide a 41 list of participating financial institutions to the 42 department by a specified date each year and to make 43 payments to the accounts of participating students in 44 specified situations; providing obligations of 45 financial institutions; limiting the fees that may be 46 charged by a financial institution for its services 47 under the program; requiring a financial institution 48 to make timely quarterly payments directly to a 49 private school, private tutor, private tutoring 50 program, or postsecondary institution or to a selected 51 college savings plan or the Stanley G. Tate Florida 52 Prepaid College Program; requiring a financial 53 institution to notify the department of the identity 54 of certain students at specified dates; requiring a 55 financial institution to annually notify the Chief 56 Financial Officer of its intent to continue to 57 participate in, or intent to withdraw from, the 58 program; requiring a financial institution to provide 59 advance notice to the Chief Financial Officer and 60 parents of students participating in the program 61 before withdrawing from the program; specifying 62 criteria and procedures by which the Commissioner of 63 Education may deny, suspend, or revoke a private 64 school’s participation in the program; specifying 65 procedures by which a private school may challenge the 66 decision of the commissioner to deny, suspend, or 67 revoke the school’s participation in the program; 68 requiring the director of the Division of 69 Administrative Hearings to expedite a hearing in 70 certain situations; authorizing the commissioner to 71 order participating financial institutions to 72 immediately suspend payments from a student’s account 73 to a participating private school under certain 74 circumstances; providing for appeal against a payment 75 suspension; authorizing the Office of Inspector 76 General of the department to release otherwise 77 confidential student information under certain 78 circumstances involving allegations of fraudulent 79 activity under the program; specifying a formula to be 80 used in determining the amount of annual payments made 81 to a student’s account under the program; providing 82 for the random selection of applicants to the program 83 who are attending a home education program or a 84 private school; providing a calculation to determine 85 the number of such students who may participate in the 86 program; authorizing the Legislative Budget Commission 87 to transfer funds in excess of amounts required to 88 fully fund the accounts of all participating students 89 to the Florida Education Finance Program; requiring 90 the department and the Department of Financial 91 Services to develop an agreement to assist in the 92 administration of the program; requiring the State 93 Board of Education to adopt rules for the Department 94 of Education and the commissioner to administer the 95 program; requiring the Chief Financial Officer to 96 adopt rules to administer its responsibilities under 97 the program; providing for the enrollment period and 98 for the number of eligible students for the 2017-2018 99 school year; requiring the department to randomly 100 select participating students in specified situations; 101 authorizing the state board to adopt emergency rules 102 for the department and the commissioner to implement 103 the program; providing an effective date. 104 105 WHEREAS, the Legislature finds that it has a duty to 106 provide for a high-quality education for all children residing 107 in this state, and 108 WHEREAS, the Legislature finds that it has a duty to 109 provide for the establishment, maintenance, and operation of 110 institutions of higher learning, and 111 WHEREAS, a high-quality education for children is 112 facilitated by parents’ involvement in educational choices for 113 their children, competition among schools and other learning 114 environments, and the measurement and evaluation of student 115 learning gains, and 116 WHEREAS, the Legislature finds that competition between 117 public schools and private schools will enhance the quality of 118 education at public schools by encouraging innovation, 119 flexibility, and efficiency, and 120 WHEREAS, providing a child with an opportunity to attend a 121 public school or with funds to pay for private schooling or 122 tutoring enables the child to access the high-quality education 123 best suited for his or her specific needs, and 124 WHEREAS, the Legislature finds that, under the right to 125 religious freedom in the State Constitution, the state may not 126 prohibit a person from using private funds to pay the cost of 127 private schooling or tutoring at an institution having any 128 religious affiliation, NOW, THEREFORE, 129 130 Be It Enacted by the Legislature of the State of Florida: 131 132 Section 1. Section 1002.387, Florida Statutes, is created 133 to read: 134 1002.387 Education Savings Account Program.— 135 (1) DEFINITIONS.—As used in this section, the term: 136 (a) “Account” means an education savings account belonging 137 to a student who is participating in, or who participated in, 138 the program. Funds in an account are private funds. 139 (b) “College savings plan” means a qualified tuition plan 140 under s. 529 of the Internal Revenue Code which allows the 141 establishment of an account for a beneficiary for the purpose of 142 paying the beneficiary’s eligible college expenses. 143 (c) “Department” means the Department of Education. 144 (d) “Eligible private postsecondary institution” means a 145 private postsecondary institution that is a member of the 146 Independent Colleges and Universities of Florida and is located 147 in this state. 148 (e) “Eligible private school” means a private school that 149 offers an education to students in kindergarten through grade 150 12, is located in this state, and meets the requirements in 151 subsection (6). 152 (f) “Financial institution” has the same meaning as defined 153 in s. 655.005. 154 (g) “Program” means the Education Savings Account Program. 155 (2) ELIGIBLE STUDENTS.— 156 (a) A student is eligible to receive funds under the 157 program if the student resides in this state and: 158 1. Is eligible to enter kindergarten or first grade; 159 2. Is the sibling of a student who participates in the 160 program and who resides in the same household; 161 3. Was counted as a full-time equivalent student during the 162 previous state fiscal year for purposes of state per-student 163 funding; or 164 4. Attends a home education program or a private school and 165 was randomly selected to participate in the program pursuant to 166 subsection (13). 167 (b) A student remains eligible for the program until he or 168 she graduates from high school and as long as the student does 169 not enroll in a public school, a charter school, or a virtual 170 instruction program, excluding the Florida Virtual School, which 171 receives state funding as a result of the student’s 172 participation. 173 (3) INELIGIBLE STUDENTS.—A student may not participate in 174 the program if he or she: 175 (a) Is enrolled in a school operating to provide 176 educational services to youth in a commitment program for the 177 Department of Juvenile Justice; 178 (b) Participates in a virtual school, correspondence 179 school, or distance learning program that receives state funding 180 for the student’s participation; 181 (c) Is enrolled in the Florida School for the Deaf and the 182 Blind; or 183 (d) Is receiving an educational scholarship pursuant to 184 chapter 1002. 185 (4) PARENT AND STUDENT OPTIONS.— 186 (a) A parent may direct a financial institution trustee of 187 his or her child’s account to use the funds in such account, in 188 whole or in combination, to: 189 1. Pay the tuition and fees for the child to attend an 190 eligible private school; 191 2. Pay the tuition and fees for the child to attend an 192 eligible private virtual school; 193 3. Pay a private tutor or private tutoring program 194 qualified under s. 1002.43 for supplemental educational 195 services; 196 4. Pay the cost of tuition, books, or fees for the child to 197 enroll in a dual enrollment program at a public postsecondary 198 institution; 199 5. Pay the cost of tuition, books, or fees for the child to 200 enroll in a dual enrollment program at an eligible private 201 postsecondary institution; 202 6. Contribute to the child’s college savings plan; or 203 7. Make a payment toward the purchase of a contract under 204 the Stanley G. Tate Florida Prepaid College Program in s. 205 1009.98. 206 (b) A parent may direct the trustee to transfer the account 207 to another financial institution participating in the program as 208 provided by the Chief Financial Officer by rule. 209 (c) Within 3 months after his or her child graduates from 210 high school or no longer participates in the program, a parent 211 may direct the trustee to donate any unspent funds in the 212 account to any private school, private virtual school, private 213 tutor, private tutoring program, or public or private 214 postsecondary institution identified in subparagraphs (a)1. 215 (a)5. or to the school district for the county in which the 216 child last resided before the child’s participation in the 217 program was terminated. If a parent fails to identify an 218 institution to which the trustee must donate the funds, the 219 trustee must donate the funds to the school district for the 220 county in which the child last resided before the child’s 221 participation in the program was terminated. 222 (5) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM 223 PARTICIPATION.— 224 (a) A parent must annually apply to the department on 225 behalf of his or her child during the annual enrollment period. 226 As part of the enrollment, the parent must identify the 227 educational option chosen to meet the compulsory attendance 228 requirements of state law whether through attendance at a 229 private school or private virtual school, enrollment in a home 230 education program under s. 1002.41, or a private tutoring 231 program under s. 1002.43. 232 (b)1. If a parent elects for his or her child to attend an 233 eligible private school or private virtual school, the parent or 234 the child must: 235 a. Select an eligible private school or private virtual 236 school and apply for admission; 237 b. Inform the child’s school district when the parent 238 withdraws the child to attend the private school or private 239 virtual school; 240 c. Remain in attendance in the selected school throughout 241 the school year unless excused by the school for illness or 242 other good cause; 243 d. Comply with the school’s published policies; 244 e. Ensure that the child participating in the program takes 245 the nationally norm-referenced tests administered by the school 246 which are required by the department. The parent may also choose 247 to have the child participate in a statewide assessment pursuant 248 to s. 1008.22. If the parent requests that the child take a 249 statewide assessment, the parent is responsible for transporting 250 the child to the testing site designated by the school district; 251 and 252 f. Pay the balance of the school’s tuition and fees in 253 excess of the funds in the child’s account. 254 2. A parent who chooses to comply with the compulsory 255 attendance requirements by enrolling his or her child in a 256 private school or private virtual school may also choose to 257 enroll the child in a dual enrollment program through a public 258 postsecondary institution or an eligible private postsecondary 259 institution and use funds from the child’s account for such 260 purpose. The parent and child must register and apply for 261 admission during the institution’s registration or application 262 period and are responsible for paying the balance of tuition and 263 fees which is not covered by payments from the child’s account. 264 (c)1. If a parent elects for his or her child to 265 participate in a home education program, the parent and child 266 must comply with s. 1002.41. 267 2. A parent who chooses to comply with the compulsory 268 attendance requirements by enrolling his or her child in a home 269 education program may also choose to enroll the child in a dual 270 enrollment program through a public postsecondary institution or 271 an eligible private postsecondary institution and use funds from 272 the child’s account for such purpose. The parent and child must 273 register and apply for admission during the institution’s 274 registration or application period and are responsible for 275 paying the balance of tuition and fees which is not covered by 276 payments from the child’s account. 277 (d)1. If a parent elects for his or her child to receive an 278 education from an eligible private tutor or private tutoring 279 program, the parent and the child must comply with this chapter. 280 2. A parent who chooses to comply with the compulsory 281 attendance requirements through the use of a private tutor or 282 private tutoring program may also choose to enroll his or her 283 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 purpose. The parent and child must register and apply for 287 admission 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 payments from the child’s account. 290 (e) If a parent elects to use any portion of his or her 291 child’s account as payment for private tutoring through an 292 eligible supplemental educational services provider, the parent 293 is responsible for payments to the provider which are not 294 covered by the child’s account. 295 (f) If a parent elects for his or her child to participate 296 in dual enrollment at a public postsecondary institution or an 297 eligible private postsecondary institution, the parent or the 298 child must: 299 1. Register and apply for admission during the 300 institution’s registration or application period. 301 2. Inform the child’s school district when the parent 302 withdraws the child to attend the postsecondary institution. 303 3. Remain in attendance in the postsecondary institution 304 throughout the school year unless excused by the institution for 305 illness or other good cause. 306 4. Comply with the institution’s published policies. 307 5. Pay the balance of the postsecondary institution’s 308 tuition and fees in excess of the funds in the child’s account. 309 (g) If a parent elects to use any of the funds in his or 310 her child’s account to make a contribution to a college savings 311 plan, the parent must comply with all federal and state laws 312 related to contributions to a college savings plan. 313 (h) If a parent elects to use any of the funds in his or 314 her child’s account toward the purchase of a contract under the 315 Stanley G. Tate Florida Prepaid College Program, the parent must 316 comply with all rules and requirements of the program and is 317 responsible for payments in excess of the funds in the account. 318 319 A child may return to the public school system at any time and 320 quarterly payments to the child’s account shall cease. The 321 parent of a child who chooses to return to the public school 322 system is responsible for the payment of any outstanding balance 323 owed to the private school, private virtual school, private 324 tutor, private tutoring program, public postsecondary 325 institution, or private postsecondary education institution 326 which was in excess of the funds in the account when payments to 327 the account ceased. 328 (6) EDUCATIONAL INSTITUTION ELIGIBILITY AND OBLIGATIONS.— 329 (a) A private school is eligible to participate in the 330 program, whether sectarian or nonsectarian, if the school: 331 1. Is accredited by the Southern Association of Colleges 332 and Schools or is eligible to participate in the Florida Tax 333 Credit Scholarship Program or the John M. McKay Scholarships for 334 Students with Disabilities Program; and 335 2. Complies with rules adopted by the State Board of 336 Education for participation in the program. 337 (b) A private virtual school is eligible to participate in 338 the program, whether sectarian or nonsectarian, if the school: 339 1. Is approved by the department to participate in the 340 school district virtual instruction program under s. 1002.45; 341 and 342 2. Complies with rules adopted by the State Board of 343 Education for participation in the program. 344 (c) A private tutor or private tutoring program is eligible 345 to participate in the program if the private tutor or private 346 tutoring program: 347 1. Is qualified under s. 1002.43; 348 2. Complies with rules adopted by the State Board of 349 Education for participation in the program; and 350 3. Is a supplemental educational services provider under 351 the federal Elementary and Secondary Education Act. 352 (d) All public postsecondary institutions are eligible to 353 participate in the program and must comply with rules adopted by 354 the State Board of Education for participation in the program. 355 (e) A private postsecondary institution is eligible to 356 participate in the program, whether sectarian or nonsectarian, 357 if the institution is a member of the Independent Colleges and 358 Universities of Florida and complies with rules adopted by the 359 State Board of Education for participation in the program. 360 (7) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of 361 Education shall: 362 (a) Establish an annual enrollment period and a process in 363 which a parent may apply to enroll his or her child in the 364 program. The enrollment period must begin by January 1 and end 365 by March 1 before the school year in which funding for the 366 child’s account is sought. All applications must be processed by 367 May 1 of each year. 368 (b) Randomly select students attending a home education 369 program or private school who are eligible under subparagraph 370 (2)(a)4. to participate in the program if the appropriation to 371 the program is sufficient to fully fund the accounts of all 372 other applicants but is insufficient to fully fund the accounts 373 of all applicants who are attending a home education program or 374 private school. 375 (c) Annually verify the eligibility of private schools, 376 private virtual schools, private tutors, private tutoring 377 programs, and postsecondary institutions to participate in the 378 program and publish a list of eligible schools, tutors, tutoring 379 programs, and postsecondary institutions. 380 (d) Annually, by March 15, submit to participating 381 financial institutions a list of eligible private schools, 382 private virtual schools, private tutors, private tutoring 383 programs, and private postsecondary institutions. 384 (e) Notify participating financial institutions of students 385 who are approved to participate in the program. The notice must 386 be made annually, by May 1, after the department processes all 387 applications to participate in the program. 388 (f) Establish a toll-free hotline that provides parents and 389 private schools with information on the program. 390 (g) Establish a process by which a person may notify the 391 department of any violation of laws or rules relating to 392 participation in the program. The department shall conduct an 393 inquiry of all signed, written, and legally sufficient 394 complaints that allege a violation of this section, or must make 395 a referral to the appropriate agency for an investigation. A 396 complaint is legally sufficient if it states ultimate facts 397 showing that this section or a rule adopted under this section 398 has been violated. 399 (h) Require participating private schools and private 400 virtual schools to annually certify compliance with the 401 requirements of the program. The certification must be made in a 402 sworn and notarized statement by the head of the private school. 403 (i) Compare the list of students participating in the 404 program with the public school enrollment lists to avoid 405 duplicate payments. 406 (j) Maintain a list of nationally norm-referenced tests 407 identified by the department which must be administered by a 408 participating private school or private virtual school to 409 students participating in the program. The tests must meet 410 industry standards of quality under rules of the State Board of 411 Education. 412 (k) Select an independent research organization, which may 413 be a public or private entity or university, to which 414 participating private schools and private virtual schools must 415 report the scores of participating students on the nationally 416 norm-referenced tests administered by the schools in grades 3 417 through 10. 418 1. The independent research organization must annually 419 issue a report to the department which includes: 420 a. The year-to-year learning gains of students in the 421 program; 422 b. To the extent possible, a comparison of the learning 423 gains of students in the program to the statewide learning gains 424 of public school students having backgrounds similar to those of 425 the students in the program. In order to minimize the costs and 426 time that the independent research organization requires for 427 analysis and evaluation, the department shall conduct analyses 428 of assessment data from matched students in public schools and 429 shall calculate learning gains of control groups using a 430 methodology outlined in the contract with the independent 431 research organization; and 432 c. The aggregate year-to-year learning gains of students in 433 the program in each participating private school in which there 434 are at least 30 participating students having scores for tests 435 for 2 consecutive years at that private school. 436 2. The sharing and reporting of the learning gains of 437 students pursuant to this paragraph must be in accordance with 438 s. 20 U.S.C. s. 1232g, the Family Educational Rights and Privacy 439 Act, and may be for the sole purpose of creating the annual 440 report required by subparagraph 1. The department and the 441 independent research organization shall preserve the 442 confidentiality of such information as required by law. The 443 organization may not disaggregate data in its annual report to a 444 level that will identify individual participating schools, 445 except as required under sub-subparagraph 1.c., or disclose the 446 academic level of individual students. 447 3. The department shall publish the annual report on its 448 website. 449 (l) Conduct random site visits to private schools, private 450 tutors, private tutoring programs, and private postsecondary 451 institutions participating in the program. During a site visit, 452 the department may conduct only activities to verify the 453 information reported by the schools concerning the enrollment 454 and attendance of students, the credentials of teachers, and the 455 results of criminal history record checks of teachers. 456 (m) Annually, by December 15, submit a report to the 457 Governor, the President of the Senate, and the Speaker of the 458 House of Representatives describing the implementation of 459 accountability mechanisms for the program; identifying any 460 violations of a law or rule governing the program concerning the 461 enrollment and attendance of students, the credentials of 462 teachers, or the background screening of teachers; and 463 describing the corrective actions taken by the department 464 relating to violations of a law or rule governing the program. 465 (8) CHIEF FINANCIAL OFFICER OBLIGATIONS.—The Chief 466 Financial Officer shall: 467 (a) Process applications from financial institutions 468 applying to participate in the program. 469 (b) Provide a list of participating financial institutions 470 to the department by March 1 of each year. 471 (c) Conduct random audits of financial institutions 472 participating in the program to ensure compliance with this 473 section. 474 (d) Revoke the eligibility of a financial institution that 475 fails to comply with its obligations under this section. 476 (e) Upon notice from the department, make payments to the 477 accounts of participating students in four equal installments by 478 September 1, November 1, February 1, and April 1. 479 (9) OBLIGATIONS OF FINANCIAL INSTITUTIONS.— 480 (a) A financial institution must apply to the Chief 481 Financial Officer for approval to participate in the program. 482 The Chief Financial Officer must approve the application of a 483 financial institution if the institution agrees to do all of the 484 following: 485 1. Serve as a trustee of the funds in a student’s account. 486 2. Limit its fees imposed on each account to 3 percent or 487 less of each payment it makes from an account. 488 3. Make timely quarterly payments directly to the eligible 489 private school, private virtual school, private tutor, private 490 tutoring program, or eligible private postsecondary institution 491 selected by the parent. The amount of the quarterly payment to 492 these institutions may not exceed: 493 a. The amount of the state quarterly payment to the 494 financial institution, less the financial institution’s fees; or 495 b. The reported tuition and fee schedule provided to the 496 department for the educational institution. 497 4. Make timely quarterly payments directly to a public 498 postsecondary institution selected by the parent for the payment 499 of books, tuition, and fees charged for a student’s 500 participation in a dual enrollment program. The amount of the 501 quarterly payment to these institutions may not exceed: 502 a. The amount of the state quarterly payment to the 503 financial institution, less the financial institution’s fees; or 504 b. The full cost of books, tuition, and fees charged for 505 the student’s participation in the dual enrollment program. 506 5. Make timely quarterly payments directly to the selected 507 college savings plan or the Stanley G. Tate Florida Prepaid 508 College Program. The amount of such quarterly payment may not 509 exceed the amount of the state quarterly payment to the 510 financial institution, less the financial institution’s fees. 511 6. Notify the department by February 1, July 1, September 512 1, and December 1 of the identity of students who have accounts 513 with the institution under this section. 514 (b) A participating financial institution must annually 515 notify the Chief Financial Officer of its intent to continue 516 participating in or its intent to withdraw from the program. A 517 financial institution must provide 180 days’ notice to the Chief 518 Financial Officer and to the parents of students having an 519 account at the institution before it may withdraw from the 520 program. The institution must also transfer each account to 521 another participating institution selected by a parent or to 522 another participating institution randomly selected by the Chief 523 Financial Officer if the parent fails to make a timely 524 selection. 525 (10) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.— 526 (a)1. The Commissioner of Education shall deny, suspend, or 527 revoke the participation of a private school, private virtual 528 school, private tutor, or private tutoring program in the 529 program if the commissioner determines that the school, tutor, 530 or tutoring program has failed to comply with this section or 531 the rules of the department adopted under this section. However, 532 if the noncompliance is correctable within a reasonable amount 533 of time and the health, safety, or welfare of the students is 534 not threatened, the commissioner may issue a notice of 535 noncompliance that shall provide the school, tutor, or tutoring 536 program with a timeframe within which to show evidence of 537 compliance before action may be taken to suspend or revoke the 538 school’s, tutor’s, or tutoring program’s participation in the 539 program. 540 2. The commissioner may deny, suspend, or revoke a private 541 school’s participation in the program if the commissioner 542 determines that an owner or operator of the private school is 543 operating or has operated an educational institution in this 544 state or another state in a manner that is contrary to the 545 health, safety, or welfare of the public. In making this 546 determination, the commissioner may consider factors including, 547 but not limited to, acts or omissions by the owner or operator 548 which led to a previous denial or revocation of participation in 549 an education scholarship program or an education savings account 550 program; an owner’s or operator’s failure to reimburse a 551 student’s account for funds improperly received or retained by a 552 school; imposition of a prior criminal or civil administrative 553 sanction related to an owner’s or operator’s management or 554 operation of an educational institution; or the existence of 555 other types of criminal proceedings in which the owner or 556 operator was found guilty of, regardless of adjudication, or 557 entered a plea of nolo contendere or guilty to any offense 558 involving fraud, deceit, dishonesty, or moral turpitude. 559 (b) The commissioner’s determination to deny, suspend, or 560 revoke a private school’s participation in the program is 561 subject to the following: 562 1. The department must notify the private school of the 563 proposed action in writing by certified mail and regular mail to 564 the private school’s address of record with the department. The 565 notice shall state the reasons for the proposed action and 566 notice of the timelines and procedures set forth in this 567 paragraph. 568 2. The private school that is adversely affected by the 569 proposed action has 15 days after receipt of the notice of 570 proposed action to file with the clerk of the department a 571 request for a proceeding pursuant to ss. 120.569 and 120.57. If 572 the private school is entitled to a hearing under s. 120.57(1), 573 the department shall forward the request to the Division of 574 Administrative Hearings. 575 3. Upon receipt of a request for a proceeding referred 576 pursuant to this paragraph, the director of the Division of 577 Administrative Hearings shall expedite the hearing and assign an 578 administrative law judge who shall commence a hearing within 30 579 days after the receipt of the formal written request from the 580 department and enter a recommended order within 30 days after 581 the hearing or within 30 days after receipt of the hearing 582 transcript, whichever is later. Each party may submit written 583 exceptions to the recommended order within 10 days after the 584 recommended order is entered. The department shall enter a final 585 order within 30 days after the entry of the recommended order. 586 The provisions of this subparagraph may be waived upon 587 stipulation by all parties. 588 (c) The commissioner may order participating financial 589 institutions to suspend payment of funds from accounts to a 590 private school if the commissioner finds that probable cause of 591 any of the following exists: 592 1. An imminent threat to the health, safety, and welfare of 593 a student; or 594 2. Fraudulent activity on the part of the private school. 595 596 The commissioner’s order suspending payment pursuant to this 597 paragraph may be appealed pursuant to the same procedures and 598 timelines as the notice of proposed action set forth in 599 paragraph (b). 600 (11) AUTHORIZED RELEASE OF CONFIDENTIAL INFORMATION. 601 Notwithstanding s. 1002.22, in incidents of alleged fraudulent 602 activity relating to participation in the program, the Office of 603 Inspector General of the department may release personally 604 identifiable records or reports of students to the following 605 persons or organizations: 606 (a) A court of competent jurisdiction in compliance with an 607 order of that court or the attorney of record in accordance with 608 a lawfully issued subpoena, consistent with the Family 609 Educational Rights and Privacy Act, 20 U.S.C. s. 1232g. 610 (b) A person or entity authorized by a court of competent 611 jurisdiction in compliance with an order of that court or the 612 attorney of record pursuant to a lawfully issued subpoena, 613 consistent with the Family Educational Rights and Privacy Act, 614 20 U.S.C. s. 1232g. 615 (c) A person, entity, or authority issuing a subpoena for 616 law enforcement purposes if the court or other issuing agency 617 has ordered that the existence or the contents of the subpoena 618 or the information furnished in response to the subpoena not be 619 disclosed, consistent with the Family Educational Rights and 620 Privacy Act, 20 U.S.C. s. 1232g, and 34 C.F.R. s. 99.31. 621 (12) EDUCATION SAVINGS ACCOUNT AMOUNT.—The total amount of 622 payments to a participating student’s account for a single 623 school year shall be equal to 40 percent of the base student 624 allocation under the Florida Education Finance Program 625 multiplied by the appropriate cost factor for the educational 626 program that would have been provided for the student in the 627 district school to which he or she was assigned, multiplied by 628 the district cost differential plus the per-student share of 629 instructional materials funds and other categorical funds as 630 appropriated in the General Appropriations Act. 631 (13) RANDOM SELECTION OF PROGRAM PARTICIPANTS.—By April 1 632 of each year, the department shall randomly select applicants to 633 participate in the program who are in home education programs 634 and private schools and who did not participate in the program 635 during the prior school year. The number of spaces available for 636 these students shall equal the number of students who enrolled 637 in the program during the annual enrollment period and were 638 counted as full-time equivalent students at a public school 639 during the previous state fiscal year for purposes of state per 640 student funding. For purposes of this calculation, the number of 641 new participants in the program who were public school students 642 does not include kindergarten and first grade students and 643 siblings of other students participating in the program. 644 (14) LEGISLATIVE BUDGET COMMISSION.—Each quarter the 645 Legislative Budget Commission may transfer any funds 646 appropriated for the program in excess of amounts required to 647 fully fund the accounts of all participating students to the 648 Florida Education Finance Program. 649 (15) ADMINISTRATION; RULES.— 650 (a) The department and the Department of Financial Services 651 shall develop a cooperative agreement to assist in the 652 administration of this section. 653 (b) The State Board of Education shall adopt rules 654 necessary for the department and the Commissioner of Education 655 to administer this section, including rules relating to the 656 establishment of the enrollment period, enrollment forms, and 657 reporting requirements for financial institutions and schools. 658 (c) The Chief Financial Officer shall adopt rules necessary 659 to administer this section, including rules relating to the 660 eligibility and auditing of participating financial 661 institutions. 662 Section 2. Enrollment period for the 2017-2018 school 663 year.— 664 (1) Notwithstanding s. 1002.387(7), Florida Statutes, the 665 enrollment period to participate in the Education Savings 666 Account Program for the 2017-2018 school year is July 1 through 667 July 31. The number of students who may participate is limited 668 to the number of participants specified in the General 669 Appropriations Act. 670 (2) Notwithstanding s. 1002.387(2), Florida Statutes, the 671 students eligible to participate in the Education Savings 672 Account Program during the 2017-2018 school year are limited to 673 students identified in s. 1002.387(2)a.1. and 3., Florida 674 Statutes. 675 (3) If the Department of Education receives more 676 applications for eligible students during the enrollment period 677 for the 2017-2018 school year than the number specified in the 678 General Appropriations Act, the department shall randomly select 679 the students who may participate in the program. 680 (4)(a) The State Board of Education may adopt emergency 681 rules for the department and the Commissioner of Education to 682 implement the program. 683 (b) The Chief Financial Officer may adopt emergency rules 684 to implement the program. 685 Section 3. This act shall take effect upon becoming a law.