The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Education
BILL: SB 506
INTRODUCER: Senator Diaz
SUBJECT: Hope Scholarship Program
DATE: November 29, 2021
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Sagues Bouck ED Favorable
2. AED
3. AP
I. Summary:
SB 506 expands eligibility for the Hope Scholarship Program (Hope program) to include a
student who attends a school overseen by a district school board that is subject to ongoing action
initiated by the State Board of Education (SBE) for non-compliance with state law or state board
rule.
The bill provides flexibility for parents to use program funds in a variety of ways through an
education savings account (ESA) and makes a number of other modifications to the Hope
program. In addition, the bill:
Authorizes ESA funds to be used for instructional materials, curriculum, tuition and fees,
fees for specified assessments, and contributions to the Stanley G. Tate Florida Prepaid
College Program or Florida College Savings program, for an eligible student who opts to
attend a private school.
Specifies that a student subjected to a qualified incident is eligible for a Hope program
scholarship, and that the student’s parents must be notified of the scholarship option,
regardless of the outcome of any investigation.
Requires each school district and the Florida Department of Education (DOE) to publish
specified information about the Hope program on the district’s website. Additionally, the bill
requires the DOE to:
o Deny or terminate program participation upon a parent’s failure to meet compliance
requirements specified in the bill.
o Require each nonprofit scholarship funding organization (SFO) to verify specified
expenditures before the distribution of funds for specified uses; and
o Investigate any written complaint of a program violation by a parent, a student, a private
school, a public school a school district, an SFO, or another appropriate party.
Authorizes the DOE, at the direction of the Commissioner of Education, to suspend or revoke
the program participation or use of program funds:
REVISED: BILL: SB 506 Page 2
Modifies parent and student responsibilities and authorizes a parent to move the student from
one eligible private school another. In addition, the parent:
o Must renew participation in the program each year.
o Is responsible for making authorized uses of program funds.
o Must sign an agreement with the SFO and annually submit a sworn compliance statement
meeting specified requirements to satisfy or maintain program eligibility.
Adds that an SFO must verify that scholarship funds are used for authorized purposes, and
document each student’s eligibility before granting a scholarship.
Authorizes payment of the scholarship to a student’s account, rather than by individual
warrant made payable to the student’s parent. In addition the bill specifies that:
o Accrued interest in the student’s account is in addition to the awarded funds; and
o A student’s scholarship award may not be reduced for specified fees.
The bill also adds language to the tax credit contribution election form to include a public school
student who attends a school overseen by a district school board that is subject to ongoing action
by the SBE.
The fiscal impact of the bill is indeterminate. See Section V.
The bill takes effect on July 1, 2022.
II. Present Situation:
Education Choice
Across the United States, an evolving school choice landscape reflects changes in the
accessibility and desirability of an array of education options, including traditional and
nontraditional public schools, private schools, and homeschooling.
1
All 50 states and the District
of Columbia provide parents the ability to send their child to a school outside of their zoned
school.
2
Twenty-seven states and the District of Columbia have enacted policies designed to
broaden access to a private education.
3
The three primary policies states have adopted that
expand private education choices include:
4
School vouchers;
Scholarship tax credits; and
Education savings accounts.
1
National Center for Education Statistics, School Choice in the United States 2019 (2019), available at
https://nces.ed.gov/pubs2019/2019106.pdf at ix.
2
National Conference of State Legislatures, Interactive Guide to School Choice Laws
https://www.ncsl.org/research/education/interactive-guide-to-school-choice.aspx (last visited Nov. 18, 2021).
3
National Conference of State Legislatures, Private School Choice https://www.ncsl.org/research/education/private-school-
choice635174504.aspx (last visited Nov. 18, 2021).
4
School vouchers are state-funded scholarships that pay for students to attend private school rather than public school.
Scholarship tax credits allow individuals and corporations to allocate a portion of their owed state taxes to private nonprofit
scholarship organizations that issue public and private school scholarships to K-12 students. Education Savings Accounts are
state-funded grants deposited into special savings accounts from which parents can withdraw funds for certain educational
expenses. Id. BILL: SB 506 Page 3
Education Choice in Florida
Approximately 45 percent of Florida’s Pre-Kindergarten through grade 12 students participate in
education choice programs in Florida.
5
Students in all programs must meet school attendance
requirements through:
6
Enrolling in a public school;
Enrolling in a private school;
7
Participating in a home education program directed by his or her parent;
8
or
Enrolling in a private tutoring program.
9
To help students take advantage of educational choice options, Florida offers multiple student
scholarship programs for students who meet the eligibility requirements:
The John M. McKay Scholarship for Students with Disabilities Program (McKay program),
10
a school voucher program;
The Florida Tax Credit Scholarship Program (FTC program),
11
a tax-credit scholarship
program;
The Family Empowerment Scholarship Program (FES program),
12
a school voucher program
for students of families with limited financial means and students of military families, and an
education savings account (ESA) program for students with disabilities; and
The Hope Scholarship Program (Hope program), a school voucher program serving students
who have reported an incident of battery, harassment, hazing, bullying or other encounter as
defined in law.
13
Hope Scholarship Program
The Hope Scholarship Program (Hope program) was established in 2018
14
as a tax credit
scholarship program to provide the parent of a public school student in kindergarten through
grade 12 an opportunity to transfer the student to another public school or to request a
scholarship for the student to enroll in and attend an eligible private school if that student has
5
ReimaginEd, Once Again, Charter Schools Dominate Florida’s Education Choice Landscape, Florida’s K-12 School Choice
Options, https://www.reimaginedonline.org/2021/01/once-again-charter-schools-dominate-floridas-education-choice-
landscape/ (last visited Nov. 18, 2021).
6
Section 1003.01(13), F.S.
7
A private school is defined as an individual, association, co-partnership, or corporation, or department, division, or section
of such organizations, that designates itself as an educational center that includes kindergarten or a higher grade and is below
college level. A private school may be a parochial, religious, denominational, for-profit, or nonprofit school. A home
education program is not considered a private school.
Section 1002.01(2), F.S.
8
A home education program is defined as the sequentially progressive instruction of a student directed by his or her parent in
order to satisfy attendance requirements. Section 1002.01(1), F.S.
9
Section 1002.43, F.S.
10
Section 1002.39, F.S., and Rule 6A-6.0970, F.A.C.
11
Section 1002.395, F.S., and Rule 6A-6.0960, F.A.C.
12
Section 1002.394, F.S., and Rule 6A-6.0952, F.A.C.
13
Section 1002.40, F.S., and Rule 6A-60951, F.A.C.
14
Section 16, ch. 2018-6, L.O.F. BILL: SB 506 Page 4
been subjected to an incident of battery; harassment;
15
hazing; bullying; kidnapping; physical
attack; robbery; sexual offenses; threat or intimidation; or fighting at school.
16
Program Prohibitions
A student is not eligible for a Hope program scholarship while he or she is enrolled in a public
school or Department of Juvenile Justice program; receiving another state educational
scholarship pursuant to Florida law; enrolled in a home education or private tutoring program; or
enrolled in the Florida School for the Deaf and the Blind. The student is also limited to
participating in no more than two state-funded virtual courses per year.
17
Eligibility Term
The term of the scholarship continues until the student returns to public school or graduates from
high school.
18
School District Obligations and Parental Options
Upon receipt of a report of an incident, the school principal must provide a copy of the report to
the parent and investigate the incident. Within 24 hours after receipt of the report, the principal
must provide a copy of the report to the parent and to the superintendent. The school district
must notify the parent of the scholarship upon conclusion of the investigation or within 15 days
after the incident was reported, whichever occurs first. The school district must also offer the
parent an opportunity to enroll his or her student in a different public school or attend an eligible
private school through the Hope program.
19
A parent who chooses to enroll his or her student in
a public school located outside the district in which the student resides is eligible for a
transportation scholarship.
20
Private School Obligations
Private schools participating in the scholarship program must comply with the general laws
governing private schools, pursuant to s. 1002.421, F.S., and must annually administer or make
provision for participating students in grades 3 through 10 to take one of the nationally norm-
referenced tests identified by the Florida Department of Education (DOE) or take the statewide
standardized assessments.
21
15
Harassment includes “COVID-19 harassment” defined as any threatening, discriminatory, insulting, or dehumanizing
verbal, written or physical conduct an individual student suffers in relation to, or as a result of, school district protocols for
COVID-19, including masking requirements, the separation or isolation of students, or COVID-19 testing requirements, that
have the effect of substantially interfering with a student’s educational performance, opportunities or benefits. Eligibility
under COVID-19 harassment extends through the 2021-2022 school year. Department of Education, Emergency Rule
6AER21-02 COVID-19 Hope Scholarship Transfer Procedures (2021), available at
https://www.fldoe.org/core/fileparse.php/19994/urlt/hope.pdf. Rule 6A-6.0951, F.A.C.
16
Section 1002.40(1) and (6), F.S. The student subjected to a specified incident is eligible for a Hope program scholarship
whether or not the incident is substantiated. Rule 6A-6.0951, F.A.C.
17
Section 1002.40(4), F.S.
18
Section 1002.40(5), F.S.
19
Section 1002.40(6), F.S.
20
Id.
21
Section 1002.40(7), F.S. BILL: SB 506 Page 5
If a private school fails to meet requirements specified in law, the Commissioner of Education
(commissioner) may determine that the private school is ineligible to participate in the
program.
22
Florida Department of Education (DOE) Obligations
The DOE is required to:
23
Cross-check the list of participating scholarship students with the public school enrollment
lists to avoid duplication;
Maintain a list of nationally norm-referenced tests to satisfy testing requirements;
Require quarterly reports by the nonprofit SFOs regarding the number of students and private
schools enrolled; and
Contract with an independent entity to annually evaluate the program.
Parent and Student Obligations
Parents must meet participation requirements for the Hope program, which include all of the
following:
24
Selecting an eligible private school.
Informing the child’s school district when withdrawing a child to attend a private school.
Remaining in attendance at the private school throughout the school year.
Ensuring the student takes the required norm-referenced assessment.
Restrictively endorsing the scholarship warrant to the private school.
A parent who fails to comply with this paragraph forfeits the scholarship.
25
Nonprofit Scholarship-funding Organization (SFO) Obligations
The scholarship is directly administered by state-approved nonprofit SFOs, which have multiple
obligations, including:
26
Reviewing applications to determine student eligibility.
Notifying parents of their receipt of a scholarship.
Establishing deadlines for parents to confirm participation.
Awarding scholarships and giving priority to renewing students.
Preparing quarterly reports to the DOE.
Notifying the DOE of any violation of Hope program requirements.
Auditor General Obligations
The Auditor General is required to conduct an annual operational audit of accounts and records
of each organization that participates in the program.
27
22
Section 1002.40(7), F.S.
23
Section 1002.40(8), F.S.
24
Section 1002.40(9), F.S.
25
Id.
26
Section 1002.40(10), F.S.
27
Section 1002.40(12), F.S. BILL: SB 506 Page 6
Scholarship Funding Tax Credit
Funding for the program comes from taxpayers who elect to donate up to $105 of the sales tax
they pay when purchasing a motor vehicle in Florida.
28
Dealers collect the contributions and
remit the funds to participating SFOs. Dealers may claim a tax credit
29
only for the funds which
are remitted to the SFO.
30
The eligible contribution must be accompanied by a contribution
election form.
31
Eligible contributions used to fund the Hope program may be used to fund FTC
program scholarships, with conditions. An SFO may carry forward to the next state fiscal year no
more than five percent of net eligible contributions to the Hope program.
32
In the 2020-2021 school year, $78.2 million in contributions were available to fund scholarships
for eligible students.
33
Scholarship Funding and Payment
The calculated amount for a student to attend an eligible private school must be calculated in
accordance with the FES program.
34
The maximum amount awarded to a student enrolled in a
public school located outside of the district in which the student resides is $750.
35
During the 2020-2021 school year, Hope program scholarships in the amount of $2.9 million
were awarded to a total of 488 students.
36
As of November 2021, 217 scholarships were awarded
to students for the 2021-2022 school year with total scholarship funding of $380,560.
37
28
Department of Revenue, 2021 Legislative Bill Analysis of SB 506 (Nov. 8, 2021).
29
The purchaser of a motor vehicle is granted a credit of 100 percent of an eligible contribution made to an eligible nonprofit
scholarship-funding organization for the Hope Scholarship Program against any tax imposed by the state and collected from
the purchaser by a dealer, designated agent, or private tag agent as a result of the purchase or acquisition of a motor vehicle,
except that a credit may not exceed the tax that would otherwise be collected from the purchaser by a dealer, designated
agent, or private tag agent. Section 212.1832(1), F.S.
30
Department of Revenue, 2021 Legislative Bill Analysis of SB 506 (Nov. 8, 2021).
31
Section 1002.40(13), F.S. The contribution election form that must include the following: “THE HOPE SCHOLARSHIP
PROGRAM PROVIDES A PUBLIC SCHOOL STUDENT WHO WAS SUBJECTED TO AN INCIDENT OF VIOLENCE
OR BULLYING AT SCHOOL THE OPPORTUNITY TO APPLY FOR A SCHOLARSHIP TO ATTEND AN ELIGIBLE
PRIVATE SCHOOL RATHER THAN REMAIN IN AN UNSAFE SCHOOL ENVRONMENT.”
32
Section 1002.40(11)(i), F.S.
33
PreK-12 Appropriations Subcommittee, Overview of School/Education Choice for K-12 Students, Presentation to the PreK-
12 Appropriations Subcommittee, The Florida House of Representatives (Nov. 3, 2021), available at
https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3094&Se
ssion=2022&DocumentType=Meeting%20Packets&FileName=pka%2011-3-21%20REVISED.pdf at 19-20.
34
Section 1002.40(11), F.S.
35
Id.
36
PreK-12 Appropriations Subcommittee, Overview of School/Education Choice for K-12 Students, Presentation to the PreK-
12 Appropriations Subcommittee, The Florida House of Representatives (Nov. 3, 2021), available at
https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3094&Se
ssion=2022&DocumentType=Meeting%20Packets&FileName=pka%2011-3-21%20REVISED.pdf at 19-20.
37
PreK-12 Appropriations Subcommittee, Update and Discussion on Fiscal Year 2021-2022 School Choice Enrollments and
Funding, Presentation to the PreK-12 Appropriations Subcommittee, The Florida House of Representatives (Nov. 3, 2021),
available at
https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3094&Se
ssion=2022&DocumentType=Meeting%20Packets&FileName=pka%2011-3-21%20REVISED.pdf at 10. BILL: SB 506 Page 7
State Board of Education Oversight of District School Boards
The State Board of Education (SBE) oversees the performance of district school boards in
enforcement of all laws and rules.
38
In order to ensure compliance with law or state board rule,
the SBOE is authorized to request and receive information, data, and reports from school
districts.
39
In addition the commissioner:
40
May investigate allegations of noncompliance with law or state board rule and determine
probable cause.
Must report determinations of probable cause to the SBE which must require the district
school board to document compliance with law or state board rule.
Must report to the SBE any findings by the Auditor General that a district school board is
acting without statutory authority or contrary to general law.
If the district school board cannot satisfactorily document compliance, the SBE may order
compliance within a specified timeframe. If the SBE determines that a district school board is
unwilling or unable to comply with law or state board rule within the specified timeframe, the
SBE is authorized to initiate any of the following actions:
Report to the Legislature that the school district is unwilling or unable to comply with law or
state board rule and recommend action to be taken by the Legislature.
Withhold the transfer of specified funds until the school district complies with law or state
board rule.
Declare the school district ineligible for competitive grants.
Require monthly or periodic reporting on the situation related to noncompliance until it is
remedied.
As of October, 2021 the SBE authorized the commissioner to financially sanction district school
boards in the amounts of the salaries of elected school board members in eight school districts
due to school districts’ violations of law during the 2021-2022 school year.
41
III. Effect of Proposed Changes:
SB 506 modifies s. 1002.40, F.S. to expand the purpose of the Hope Scholarship Program (Hope
program) to include a student who attends a school overseen by a district school board that is
subject to ongoing action initiated by the State Board of Education (SBE) for non-compliance
with state law or state board rule. Such program expansion may increase participation in the
program. The bill also specifies that program eligibility is not dependent on the outcome of an
investigation into a reported incident.
The bill provides flexibility for parents to use program funds in a variety of ways through an
education savings account (ESA) and makes a number of other modifications to the Hope
program.
38
Section 1008.32, F.S.
39
Section 1008.32(1), F.S.
40
Section 1008.32, F.S.
41
Florida Department of Education, State Board of Education Sanctions School Districts for Failure to Follow the Law,
https://www.fldoe.org/newsroom/latest-news/state-board-of-education-sanctions-school-districts-for-failure-to-follow-the-
law.stml (last visited Nov. 17, 2021). BILL: SB 506 Page 8
Authorized Uses of Program Funds
For an eligible student who opts to attend a private school, the bill authorizes ESA funds to be
used for the following:
Instructional materials, including digital devices, digital periphery devices, and assistive
technology devices that allow a student to access instruction or instructional content and
training on the use of and maintenance agreements for these devices.
Curriculum;
42
Tuition and fees at an eligible private school;
Fees for nationally standardized, norm-referenced achievement tests and other assessments;
and
Contributions to the Stanley G. Tate Florida Prepaid College Program or Florida College
Savings program.
43
Eligibility Term
The bill modifies requirements to the term of the Hope program scholarship. The scholarship
remains in force until:
The parent does not renew program eligibility;
The nonprofit scholarship funding organization (SFO) determines that the student is not
eligible for program renewal;
The Commissioner of Education (commissioner) suspends or revokes program participation
or use of funds; or
The student’s parent has forfeited participation for failure to comply with specified
requirements.
The bill authorizes that program expenditures may continue until the account balance is
expended or the account is closed and requires that any remaining funds revert to the SFO after:
Denial or revocation of program eligibility by the commissioner for fraud or abuse; or
Two consecutive fiscal years during with an account has been inactive.
School District Obligations and Parental Options
The bill modifies school district obligations and parental options, which include:
Requiring the school district to provide parents notice of the scholarship regardless of the
outcome of any investigation.
Authorizing the parent of an eligible student to apply directly to an SFO for a scholarship
after the submission of a report, and requiring the parent to include a copy of the submitted
report with the application.
Requiring each school district to publish specified information about the Hope program on
the district’s website homepage.
42
Curriculum is defined in the bill as a complete course of study for a particular content area or grade level, including any
required supplemental materials and associated online instruction.
43
See Sections 1009.98 and 1009.981, F.S. BILL: SB 506 Page 9
Department of Education Obligations
The bill adds the program award amount per student and the total expenditures for authorized
uses of funds to the quarterly reports the Florida Department of Education (DOE) must require of
the SFOs. In addition, the bill adds that the DOE must;
Publish and update specified information about the Hope program on the DOE website;
Deny or terminate program participation upon a parent’s failure to meet specified compliance
requirements;
Notify the parent and the SFO when a scholarship account it closed and program funds revert
to the SFO;
Require each SFO to verify specified eligible expenditures before the distribution of funds
for instructional materials and curriculum; and
Investigate any written complain of a program violation by a parent, a student, a private
school, a public school a school district, an SFO, or another appropriate party.
At the direction of the commissioner, the bill authorizes the DOE to:
Suspend or revoke program participation or use of program funds by the student or
participation or eligibility of an SFO, eligible private school, or other party for a program
violation.
Determine the length of, and conditions for, lifting a suspension or revocation.
Recover unexpended program funds to recover funds that were not authorized for use.
In determining whether to suspend or revoke participation or to lift a suspension or revocation,
the bill authorizes the DOE to consider factors including:
Acts or omissions that led to a previous suspension or revocation of participation in a state or
federal program or an education scholarship program:
Failure to reimburse the organization for funds improperly received or retained;
Failure to reimburse government funds improperly received or retained;
Imposition of a prior criminal sanction related to the person or entity or its officers or
employees;
Imposition of a civil fine or an administrative find, license revocation or suspension, or
program eligibility suspension, termination, or revocation related to a person’s or an entity’s
management or operation; or
Other types or criminal proceedings in which the person or entity or its officers or employees
were 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.
Parent and Student Responsibilities
The bill modifies parent and student responsibilities and authorizes that a parent, upon
reasonable notice to the SFO, may move the student from one eligible private school to another.
In addition, the parent:
Must renew participation in the program each year.
Is responsible for making authorized uses of program funds and for all authorized uses of
program funds in excess of the amount of the scholarship.
Must sign an agreement with the SFO and annually submit a sworn compliance statement,
with specified provisions, to satisfy or maintain program eligibility. BILL: SB 506 Page 10
A student whose participation in the program is not renewed may continue to spend scholarship
funds in his or her account from prior years unless the account must be closed. If a parent does
not make authorized uses of program funds for the student, and the student’s account has been
inactive for two consecutive years, the student is ineligible for additional scholarship payments
until the SFO verifies that expenditures from the account have occurred.
The bill specifies that a participant who fails to meet the parent and student responsibilities
forfeits the scholarship.
Nonprofit Scholarship Funding Organization Obligations
The bill requires that an SFO establish and maintain separate accounts for each eligible student;
verify that scholarship funds are used for authorized purposes; and document each scholarship
student’s eligibility for a fiscal year before granting a scholarship for that year.
Funding and Payment
The bill removes the requirement for scholarship payment to be made by individual warrant
made payable to the student’s parent and adds that the payment may be deposited into the
student’s account established by the SFO. In addition the bill adds that:
Accrued interest in the student’s account is in addition to, and not part of, the awarded funds
and program funds include both the awarded funds and accrued interest; and
A student’s scholarship award may not be reduced for debit card or electronic payment fees.
Scholarship Funding Tax Credits
The bill adds language to the tax credit contribution election form to include a public school
student who attends a school overseen by a district school board that is subject to ongoing action
by the SBE.
The bill takes effect on July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None. BILL: SB 506 Page 11
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
The Department of Revenue may incur operational costs associated with updating the
contribution election form. Because the additional number of students who will qualify
for the Hope Scholarship Program cannot be determined, the fiscal impact of the bill is
indeterminate. The Revenue Estimating Conference will determine the revenue impact on
state and local government, if any.
44
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 213.053, 1002.394,
1002.395, and 1002.40.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
44
Department of Revenue, 2021 Legislative Bill Analysis of SB 506 (Nov. 8, 2021).