SB 1172 — Hope Scholarship Program

authorizing the Department of Revenue to adopt emergency rules for specified purposes;

providing an effective date.

63 Be It Enacted by the Legislature of the State of Florida:

65 Section 1. Section 1002.40, Florida Statutes, is created to read:

1002.40 The Hope Scholarship Program.— (1) PURPOSE.—The Hope Scholarship Program is established to provide the parent of a public school student who was subjected to an incident listed in subsection (3) an opportunity to transfer the student to another public school or to request and receive from the state a scholarship for the student to enroll in and attend an eligible private school.

(2) DEFINITIONS.—As used in this section, the term:

(a) “Department” means the Department of Education.

(b) “Eligible contribution” or “contribution” means a monetary contribution from a person required to pay sales and use tax on the purchase or acquisition of a motor vehicle, subject to the restrictions provided in this section, to an eligible nonprofit scholarship-funding organization.

The taxpayer making the contribution may not designate a specific student as the beneficiary of the contribution.

(c) “Eligible nonprofit scholarship-funding organization” or “organization” has the same meaning as provided in s.

1002.395(2)(f).

(d) “Eligible private school” has the same meaning as provided in s.

1002.395(2)(g).

(e) “Motor vehicle” has the same meaning as provided in s.

320.01(1)(a), but does not include heavy trucks, truck tractors, trailers, and motorcycles.

(f) “Parent” means a resident of this state who is a parent, as defined in s.

1000.21, and whose student was subjected to an incident listed in subsection (3).

(g) “Program” means the Hope Scholarship Program.

(h) “School” includes any educational program or activity conducted by a public K-12 educational institution, any school related or school-sponsored program or activity, and riding on a school bus, as defined in s.

1006.25(1), including waiting at a school bus stop.

(i) “Unweighted FTE funding amount” means the statewide average total funds per unweighted full-time equivalent funding amount that is incorporated by reference in the General Appropriations Act, or by a subsequent special appropriations act, for the applicable state fiscal year.

(3) PROGRAM ELIGIBILITY.—Beginning with the 2018-2019 school year, contingent upon available funds, and on a first come, first-served basis, a student enrolled in a Florida public school in kindergarten through grade 12 is eligible for a scholarship under this program if the student has been subjected to an incident of battery;

harassment;

hazing;

bullying;

kidnapping;

physical attack;

robbery;

sexual offenses, harassment, assault, or battery;

threat or intimidation;

or fighting at school.

(4) PROGRAM PROHIBITIONS.—Payment of a scholarship may not be made if a student is:

(a) Enrolled in a public school, including, but not limited to, the Florida School for the Deaf and the Blind;

the College Preparatory Boarding Academy;

a developmental research school authorized under s.

1002.32;

or a charter school authorized under s.

1002.33, s.

1002.331, or s.

1002.332;

(b) Enrolled in a school operating for the purpose of providing educational services to youth in the Department of Juvenile Justice commitment programs;

(c) Participating in a virtual school, correspondence school, or distance learning program that receives state funding pursuant to the student’s participation unless the participation is limited to no more than two courses per school year;

or (d) Receiving any other educational scholarship pursuant to this chapter.

(5) SCHOOL DISTRICT OBLIGATIONS;

PARENTAL OPTIONS.— (a) Upon receipt of a report of an incident listed in subsection (3), the school principal shall provide a copy of the report to the parent and investigate the incident to determine if the incident must be reported as required by s.

1006.09(6).

Upon conclusion of the investigation or within 15 days after the incident was reported, whichever occurs first, the school district shall notify the parent of the program and offer that parent an opportunity to enroll his or her student in another public school or to request and receive a scholarship to attend an eligible private school, subject to available funding.

A parent who chooses to enroll his or her student in a Florida public school located outside the district in which the student resides pursuant to s.

1002.31 shall be eligible for a scholarship to transport the student as provided in paragraph (11)(b).

(b) For each student participating in the program in a private school who chooses to participate in the statewide assessments under s.

1008.22 or the Florida Alternate Assessment, the school district in which the student resides must notify the student and his or her parent about the locations and times to take all statewide assessments.

(6) PRIVATE SCHOOL ELIGIBILITY AND OBLIGATIONS.—An eligible private school may be sectarian or nonsectarian and shall:

(a) Comply with all requirements for private schools participating in state school choice scholarship programs pursuant to this section and s.

1002.421.

(b) Provide to the organization, upon request, all documentation required for the student’s participation, including the private school’s and the student’s fee schedules.

(c) Be academically accountable to the parent for meeting the educational needs of the student by:

1. At a minimum, annually providing to the parent a written explanation of the student’s progress.

2. Annually administering or making provision for students participating in the program in grades 3 through 10 to take one of the nationally norm-referenced tests identified by the department or the statewide assessments pursuant to s.

1008.22.

Students with disabilities for whom standardized testing is not appropriate are exempt from this requirement.

A participating private school shall report a student’s scores to his or her parent.

3. Cooperating with the student whose parent chooses to have the student participate in the statewide assessments pursuant to s.

1008.22 or, if a private school chooses to offer the statewide assessments, administering the assessments at the school.

a. A participating private school may choose to offer and administer the statewide assessments to all students who attend the private school in grades 3 through 10.

b. A participating private school shall submit a request in writing to the department by March 1 of each year in order to administer the statewide assessments in the subsequent school year.

(d) Employ or contract with teachers who have regular and direct contact with each student receiving a scholarship under this section at the school’s physical location.

(e) Maintain in this state a physical location where a scholarship student regularly attends classes.

(f) Provide a report from an independent certified public accountant who performs the agreed-upon procedures developed under s.

1002.395(6)(o) if the private school receives more than $250,000 in funds from scholarships awarded under this section in a state fiscal year.

A private school subject to this paragraph must annually submit the report by September 15 to the organization that awarded the majority of the school’s scholarship funds.

The agreed-upon procedures must be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

200 If a private school is unable to meet the requirements of this subsection, the commissioner may determine that the private school is ineligible to participate in the program.

(7) DEPARTMENT OF EDUCATION OBLIGATIONS.—The department shall:

(a) Establish a toll-free hotline that provides parents and private schools with information on participation in the program.

(b) Annually verify the eligibility of private schools that meet the requirements of subsection (6).

(c) Require an annual notarized and sworn compliance statement by participating private schools certifying compliance with state laws and retain such records.

(d) Cross-check the list of participating students with the public school enrollment lists and participation lists in other scholarship programs established under this chapter before each scholarship payment to avoid duplication.

(e) Maintain a list of nationally norm-referenced tests identified for purposes of satisfying the testing requirement in paragraph (9)(f).

The tests must meet industry standards of quality in accordance with State Board of Education rule.

(f) Require quarterly reports by an eligible nonprofit scholarship-funding organization regarding the number of students participating in the scholarship program, the private schools in which the students are enrolled, and other information deemed necessary by the department.

(g) Contract with an independent entity to provide an annual evaluation of the program by:

1. Reviewing the school climate and code of student conduct of each public school at which 10 or more reported incidents occurred to determine areas in the school or school district procedures involving reporting, investigating, and communicating a parent’s and student’s rights that are in need of improvement.

At a minimum, the review must include:

a. An assessment of the investigation time and quality of the response of the school and the school district.

b. An assessment of the effectiveness of communication procedures with the students involved in an incident, the students’ parents, and the school and school district personnel;

c. An analysis of school incident and discipline data;

d. The challenges and obstacles relating to implementing recommendations from this review.

2. Reviewing the school climate and code of student conduct of each public school a student transferred to if the student was from a school identified in subparagraph 1.

in order to identify best practices and make recommendations to a public school at which the incidents occurred.

3. Reviewing the performance of participating students enrolled in a private school in which at least 51 percent of the total enrolled students in the prior school year participated in the program and in which there are at least 10 participating students who have scores for tests administered.

4. Surveying the parents of participating students to determine academic, safety, and school climate satisfaction and to identify any challenges or obstacles in addressing the incident or relating to the use of the scholarship.

(h) Upon the request of a participating private school, provide at no cost to the school the statewide assessments administered under s.

1008.22 and any related materials for administering the assessments.

Students at a private school may be assessed using the statewide assessments if the addition of those students and the school does not cause the state to exceed its contractual caps for the number of students tested and the number of testing sites.

The state shall provide the same materials and support to a private school that it provides to a public school.

A private school that chooses to administer statewide assessments under s.

1008.22 shall follow the requirements set forth in ss.

1008.22 and 1008.24, rules adopted by the State Board of Education to implement those sections, and district-level testing policies established by the district school board.

(i) Establish a process by which individuals may notify the department of any violation by a parent, private school, or school district of state laws relating to program participation.

The department shall conduct an inquiry or make a referral to the appropriate agency for an investigation of any written complaint of a violation of this section if the complaint is signed by the complainant and is legally sufficient.

A complaint is legally sufficient if such complaint contains ultimate facts that show that a violation of this section or any rule adopted by the State Board of Education pursuant to this section has occurred.

In order to determine legal sufficiency, the department may require supporting information or documentation from the complainant.

A department inquiry is not subject to the requirements of chapter 120.

(j)1. Conduct site visits to participating private schools.

The purpose of the site visits is solely to verify the information reported by the schools concerning the enrollment and attendance of students, the credentials of teachers, background screening of teachers, and teachers’ fingerprinting results.

The department may not make more than seven site visits each year;

however, the department may make additional site visits at any time to a school that has received a notice of noncompliance or a notice of proposed action within the previous 2 years.

2. Annually, by December 15, report to the Governor, the President of the Senate, and the Speaker of the House of Representatives the department’s actions with respect to implementing accountability in the program under this section and s.

1002.421, any substantiated allegations or violations of law or rule by an eligible private school under this program and the corrective action taken by the department.

(8) COMMISSIONER OF EDUCATION AUTHORITY AND OBLIGATIONS.— (a) The Commissioner of Education:

1. Shall deny, suspend, or revoke a private school’s participation in the program if it is determined that the private school has failed to comply with the provisions of this section.

However, if the noncompliance is correctable within a reasonable amount of time and if the health, safety, or welfare of the students is not threatened, the commissioner may issue a notice of noncompliance which provides the private school with a timeframe within which to provide evidence of compliance before taking action to suspend or revoke the private school’s participation in the program.

2. May deny, suspend, or revoke a private school’s participation in the program if the commissioner determines that an owner or operator of the private school is operating or has operated an educational institution in this state or in another state or jurisdiction in a manner contrary to the health, safety, or welfare of the public.

a. In making such a determination, the commissioner may consider factors that include, but are not limited to, acts or omissions by an owner or operator which led to a previous denial or revocation of participation in an education scholarship program;

an owner’s or operator’s failure to reimburse the department for scholarship funds improperly received or retained by a school;

imposition of a prior criminal sanction related to an owner’s or operator’s management or operation of an educational institution;

imposition of a civil fine or administrative fine, license revocation or suspension, or program eligibility suspension, termination, or revocation related to an owner’s or operator’s management or operation of an educational institution;

or other types of criminal proceedings in which an owner or operator was found guilty of, regardless of adjudication, or entered a plea of nolo contendere or guilty to, any offense involving fraud, deceit, dishonesty, or moral turpitude.

b. For purposes of this subparagraph, the term “owner or operator” includes an owner, operator, superintendent, or principal of, or a person who has equivalent decisionmaking authority over, a private school participating in the scholarship program.

(b) The commissioner’s determination is subject to the following:

1. If the commissioner intends to deny, suspend, or revoke a private school’s participation in the program, the department shall notify the private school of such proposed action in writing by certified mail and regular mail to the private school’s address of record with the department.

The notification shall include the reasons for the proposed action and notice of the timelines and procedures set forth in this paragraph.

2. The private school that is adversely affected by the proposed action shall have 15 days after receipt of the notice of proposed action to file with the department’s agency clerk a request for a proceeding pursuant to ss.

120.569 and 120.57.

If the private school is entitled to a hearing under s.

120.57(1), the department shall refer the request to the Division of Administrative Hearings.

3. Upon receipt of a request referred pursuant to this paragraph, the director of the Division of Administrative Hearings shall expedite the hearing and assign an administrative law judge who shall commence a hearing within 30 days after the receipt of the formal written request by the division and enter a recommended order within 30 days after the hearing or within 30 days after receipt of the hearing transcript, whichever is later.

Each party shall be allowed 10 days in which to submit written exceptions to the recommended order.

A final order shall be entered by the agency within 30 days after the entry of a recommended order.

The provisions of this subparagraph may be waived upon stipulation by all parties.

(c) The commissioner may immediately suspend payment of scholarship funds if it is determined that there is probable cause to believe that there is:

1. An imminent threat to the health, safety, or welfare of the students;

or 2. Fraudulent activity on the part of the private school.

Notwithstanding s.

1002.22, in incidents of alleged fraudulent activity pursuant to this section, the department’s Office of Inspector General is authorized to release personally identifiable records or reports of students to the following persons or organizations:

a. A court of competent jurisdiction in compliance with an order of that court or the attorney of record in accordance with a lawfully issued subpoena, consistent with the Family Educational Rights and Privacy Act, 20 U.S.C.

s.

1232g.

b. A person or entity authorized by a court of competent jurisdiction in compliance with an order of that court or the attorney of record pursuant to a lawfully issued subpoena, consistent with the Family Educational Rights and Privacy Act, 20 U.S.C.

s.

1232g.

c. Any person, entity, or authority issuing a subpoena for law enforcement purposes when the court or other issuing agency has ordered that the existence or the contents of the subpoena or the information furnished in response to the subpoena not be disclosed, consistent with the Family Educational Rights and Privacy Act, 20 U.S.C.

s.

1232g, and 34 C.F.R.

s.

99.31.

397 The commissioner’s suspension of payment pursuant to this paragraph may be appealed pursuant to the same procedures and timelines as the notice of proposed action set forth in paragraph (b).

(9) PARENT AND STUDENT RESPONSIBILITIES FOR PROGRAM PARTICIPATION.—A parent who applies for a Hope Scholarship is exercising his or her parental option to place his or her student in an eligible private school.

(a) The parent must select an eligible private school and apply for the admission of his or her student.

(b) The parent must inform the student’s school district when the parent withdraws his or her student to attend an eligible private school.

(c) Any student participating in the program must remain in attendance throughout the school year unless excused by the school for illness or other good cause.

(d) Each parent and each student has an obligation to the private school to comply with the private school’s published policies.

(e) Upon reasonable notice to the department and the school district, the parent may remove the student from the private school and place the student in a public school in accordance with this section.

(f) The parent must ensure that the student participating in the program takes the norm-referenced assessment offered by the private school.

The parent may also choose to have the student participate in the statewide assessments pursuant to s.

1008.22.

If the parent requests that the student participating in the program take the statewide assessments pursuant to s.

1008.22 and the private school has not chosen to offer and administer the statewide assessments, the parent is responsible for transporting the student to the assessment site designated by the school district.

(g) Upon receipt of a scholarship warrant, the parent to whom the warrant is made must restrictively endorse the warrant to the private school for deposit into the account of the private school.

The parent may not designate any entity or individual associated with the participating private school as the parent’s attorney in fact to endorse a scholarship warrant.

A parent who fails to comply with this paragraph forfeits the scholarship.

(10) OBLIGATIONS OF NONPROFIT SCHOLARSHIP-FUNDING ORGANIZATIONS.—An organization may establish scholarships for eligible students by:

(a) Receiving applications and determining student eligibility in accordance with the requirements of this section.

(b) Notifying parents of their receipt of a scholarship on a first-come, first-served basis, based upon available funds.

(c) Preparing and submitting quarterly and annual reports to the department pursuant to paragraphs (7)(f) and (g).

In addition, an eligible nonprofit scholarship-funding organization must submit in a timely manner any information requested by the department relating to the scholarship program.

(d) Notifying the department of any violation of this section.

(11) FUNDING AND PAYMENT.— (a) The maximum amount awarded to a student enrolled in an eligible private school shall be determined as a percentage of the unweighted FTE funding amount for that state fiscal year and thereafter as follows:

1. Eighty-eight percent for a student enrolled in kindergarten through grade 5.

2. Ninety-two percent for a student enrolled in grade 6 through grade 8.

3. Ninety-six percent for a student enrolled in grade 9 through grade 12.

(b) The maximum amount awarded to a student enrolled in a Florida public school located outside of the district in which the student resides shall be $750.

(c) When a student enters the program, the organization must receive all documentation required for the student’s participation, including a copy of the report of the incident received pursuant to subsection (5) and the private school’s and the student’s fee schedules.

The initial payment shall be made after verification of admission acceptance, and subsequent payments shall be made upon verification of continued enrollment and attendance at the private school.

(d) Payment of the scholarship by the eligible nonprofit scholarship-funding organization shall be by individual warrant made payable to the student’s parent.

If the parent chooses that his or her student attend an eligible private school, the warrant must be delivered by the eligible nonprofit scholarship funding organization to the private school of the parent’s choice, and the parent shall restrictively endorse the warrant to the private school.

(e) An eligible nonprofit scholarship-funding organization shall obtain verification from the private school of a student’s continued attendance at the school for each period covered by a scholarship payment.

(f) Payment of the scholarship shall be made by the eligible nonprofit scholarship-funding organization no less frequently than on a quarterly basis.

(g) An organization may use up to 3 percent of eligible contributions received during the state fiscal year in which such contributions are collected for administrative expenses if the organization has operated as an eligible nonprofit scholarship-funding organization for at least the preceding 3 fiscal years and did not have any findings of material weakness or material noncompliance in its most recent audit under s.

1002.395(6)(m).

Such administrative expenses must be reasonable and necessary for the organization’s management and distribution of eligible contributions under this section.

No funds authorized under this paragraph shall be used for lobbying or political activity or expenses related to lobbying or political activity.

Up to one-third of the funds authorized for administrative expenses under this paragraph may be used for expenses related to the recruitment of contributions from taxpayers.

An eligible nonprofit scholarship-funding organization may not charge an application fee.

(h) Moneys received pursuant to this section do not constitute taxable income to the qualified student or his or her parent.

(12) OBLIGATIONS OF THE AUDITOR GENERAL.— (a) The Auditor General shall conduct an annual operational audit of accounts and records of each organization that participates in the program.

As part of this audit, the Auditor General shall verify, at a minimum, the total number of students served and transmit that information to the department.

The Auditor General shall provide the commissioner with a copy of each annual operational audit performed pursuant to this subsection within 10 days after the audit is finalized.

(b) The Auditor General shall notify the department of any organization that fails to comply with a request for information.

(13) SCHOLARSHIP FUNDING TAX CREDITS.— (a) A tax credit is available under s.

212.1832 for use by a taxpayer that makes an eligible contribution to the program.

Each eligible contribution is limited to a single payment of $20 at the time of purchase of a motor vehicle or a single payment of $20 at the time of registration of a motor vehicle that was not purchased from a dealer.

An eligible contribution shall be accompanied by an election to contribute to the program and shall be made by the purchaser at the time of purchase or at the time of registration on a form provided by the Department of Revenue.

Payments of contributions shall be made to a dealer, as defined in chapter 212, at the time of purchase of a motor vehicle or to an agent of the Department of Revenue, as designated by s.

212.06(10), at the time of registration of a motor vehicle that was not purchased from a dealer.

(b) A tax collector or any person or firm authorized to sell or issue a motor vehicle license who is designated as an agent of the Department of Revenue pursuant to s.

212.06(10) or who is a dealer shall:

1. Provide the purchaser the contribution election form, as prescribed by the Department of Revenue, at the time of purchase of a motor vehicle or at the time of registration of a motor vehicle that was not purchased from a dealer.

2. Collect eligible contributions.

3. Using a form provided by the Department of Revenue, which shall include the dealer’s or agent’s federal employer identification number, remit to an organization on or before the 20th day of each month the total amount of contributions made to that organization and collected during the preceding calendar month.

4. Report on each return filed with the Department of Revenue the total amount of credits allowed under s.

212.1832 during the preceding calendar month.

(c) An organization shall report to the Department of Revenue, on or before the 20th day of each month, the total amount of contributions received pursuant to paragraph (b) in the preceding calendar month on a form provided by the Department of Revenue.

Such report shall include the federal employer identification number of each tax collector, authorized agent of the Department of Revenue, or dealer who remitted contributions to the organization during that reporting period.

(d) A person who, with intent to unlawfully deprive or defraud the program of its moneys or the use or benefit thereof, fails to remit a contribution collected under this section is guilty of theft of charitable funds, punishable as follows:

1. If the total amount stolen is less than $300, the offense is a misdemeanor of the second degree, punishable as provided in s.

775.082 or s.

775.083.

Upon a second conviction, the offender is guilty of a misdemeanor of the first degree, punishable as provided in s.

775.082 or s.

775.083.

Upon a third or subsequent conviction, the offender is guilty of a felony of the third degree, punishable as provided in s.

775.082, s.

775.083, or s.

775.084.

2. If the total amount stolen is $300 or more, but less than $20,000, the offense is a felony of the third degree, punishable as provided in s.

775.082, s.

775.083, or s.

775.084.

3. If the total amount stolen is $20,000 or more, but less than $100,000, the offense is a felony of the second degree, punishable as provided in s.

775.082, s.

775.083, or s.

775.084.

4. If the total amount stolen is $100,000 or more, the offense is a felony of the first degree, punishable as provided in s.

775.082, s.

775.083, or s.

775.084.

(e) A person convicted of an offense under paragraph (d) shall be ordered by the sentencing judge to make restitution to the organization in the amount that was stolen from the program.

(14) LIABILITY.—The state is not liable for the award or any use of awarded funds under this section.

(15) SCOPE OF AUTHORITY.—This section does not expand the regulatory authority of this state, its officers, or any school district to impose additional regulation on participating private schools beyond those reasonably necessary to enforce requirements expressly set forth in this section.

(16) RULES.—The State Board of Education shall adopt rules to administer this section.

Section 2. Section 212.1832, Florida Statutes, is created to read:

212.1832 Credit for contributions to the Hope Scholarship Program.— (1) There is allowed a credit of 100 percent of an eligible contribution made to an eligible nonprofit scholarship-funding organization under s.

1002.40 against any tax imposed by the state and due under this chapter as a result of the purchase or acquisition of a motor vehicle.

The credit may not exceed the tax otherwise owed.

(2) For purposes of the distributions of tax revenue under s.

212.20, the department shall disregard any tax credits allowed under this section to ensure that any reduction in tax revenue received that is attributable to the tax credits results only in a reduction in distributions to the General Revenue Fund.

The provisions of s.

1002.40 apply to the credit authorized by this section.

Section 3. The Department of Revenue may, and all conditions are deemed met to, adopt emergency rules pursuant to ss.

120.536(1) and 120.54, Florida Statutes, to administer this act.

Section 4. This act shall take effect upon becoming a law.