This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0001b.PKA
DATE: 2/24/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1 School Choice
SPONSOR(S): PreK-12 Appropriations Subcommittee, Choice & Innovation Subcommittee, Tuck, Plasencia
and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Choice & Innovation Subcommittee 13 Y, 4 N, As CS Wolff Sleap
2) PreK-12 Appropriations Subcommittee 11 Y, 3 N, As CS Bailey Potvin
3) Education & Employment Committee
SUMMARY ANALYSIS
For decades, Florida has been a national leader in providing high quality education options for its parents and
students. In addition to a myriad of public options, Florida offers scholarship programs that allow parents of
eligible students to register and attend private schools that may better serve a student’s particular needs or to
provide educational options for students with disabilities. These programs primarily consist of the Florida Tax
Credit Scholarship (FTC), the Family Empowerment Scholarship for students attending private school (FES-
EO), and the Family Empowerment Scholarship for students with disabilities (FES-UA).
The bill increases the number of students with disabilities served under the FES-UA by increasing scholarship
growth rates from 1 percent to 3 percent of Florida’s exceptional education students, annually. Additionally, the
bill authorizes a SFO that administers FTC scholarships to use any excess tax credit funds, after all FTC
scholarships have been funded, to fund eligible FES-UA students on a waitlist.
The bill expands eligibility for the FTC and FES-EO scholarships to any student who is a resident of Florida
and is eligible to enroll in kindergarten through grade 12 in a public school. The bill establishes the
personalized education program as a parent directed educational choice option and authorizes the student to
participate in FTC. The bill retains the requirement that priority for FTC and FES-EO scholarships be given to
those students whose household income does not exceed 185 percent of the federal poverty level or who is in
foster care or out-of-home care. Under the bill, each parent of an eligible student will receive an empowerment
savings account to choose among a variety of options to customize their child’s k-12 education. The bill
expands the scope of authorized uses for scholarships.
To provide additional clarity to participants, the bill aligns the parental and student responsibilities for recipients
of FTC and FES-EO scholarships as well as aligns the provisions governing how long an award remains in
force and when an account must be closed. Additionally, the bill requires scholarship funding organizations to
develop purchasing guidelines for authorized uses of scholarship funds and publish them to their websites.
The bill requires that scholarship-funding organizations review student eligibility annually, approve all
expenditures prior to disbursing any funds from the empowerment savings account, and notify parents that
participation in a scholarship program does not guarantee enrollment in a private school.
The bill expressly authorizes any school in Florida, including public charter schools, to permit a student to
enroll part-time and provides that the student will be funded proportionally based on their time of attendance.
The estimated fiscal impact on state government expenditures is $209.6 million. See Fiscal Analysis.
The bill has an effective date of July 1, 2023. STORAGE NAME: h0001b.PKA PAGE: 2
DATE: 2/24/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
For decades, Florida has been a national leader in providing high quality education options for its
parents and students. In addition to a myriad of public options, Florida offers scholarship programs that
allow parents of eligible students to register and attend private schools that may better serve a
student’s particular needs or to provide educational options for students with disabilities. The three
scholarship programs, include:
The Family Empowerment Scholarship Program, consisting of a scholarship for students
attending private school (FES-EO) and a scholarship for students with a disability (FES-UA);
1
Florida Tax Credit Scholarship Program (FTC);
2
and
The Hope Scholarship Program (HOPE).
3
Private schools must meet specific criteria in order to be eligible to participate in Florida’s scholarship
programs
4
and the Department of Education (DOE)
5
and Commissioner of Education (commissioner)
6
are tasked with implementation and oversight responsibilities. Florida’s scholarship programs are
administered by Scholarship-funding Organizations (SFO) approved by the DOE.
7
Florida Tax Credit Scholarship Program
Present Situation
The FTC was created in 2001 and enables taxpayers to make private, voluntary contributions to a SFO,
to expand educational opportunities for families that have limited financial resources, and enables
Florida’s children to achieve a greater level of excellence in their education.
8
The FTC is funded with
contributions to SFOs from taxpayers who receive a tax credit for use against their liability for corporate
income tax, insurance premium tax, severance taxes on oil and gas production, self-accrued sales tax
liabilities of direct pay permit holders or alcoholic beverage taxes on beer, wine, and spirits and rental
or license fees.
9
The tax credit is equal to 100 percent of the eligible contributions made.
10
SFOs use
these contributions to award scholarships for the cost of tuition and fees at an eligible private school or
transportation expenses to a Florida public school in which a student is enrolled and that is different
from the school to which the student was assigned.
11
The DOE, the Department of Revenue (DOR), and the Division of Alcoholic Beverages and Taxes
(DABT) cooperatively administer the FTC.
12
FTC Scholarship Eligibility
1
Section 1002.394, F.S.; see also rule 6A-6.0952, F.A.C.
2
Section 1002.395, F.S.; see also rule 6A-6.0960, F.A.C.
3
Section 1002.40, F.S.; see also rule 6A-6.0951, F.A.C.
4
Section 1002.421(1), F.S.
5
Section 1002.421(2), F.S.
6
Section 1002.421(3), F.S.
7
See ss. 1002.394(11) and 1002.395(6) and (15).
8
Section 1002.395(1)(b), F.S.
9
Section 1002.395(1) and (5) and s. 212.099(2), F.S. Information and documentation provided to the DOE and the Auditor General
relating to the identity of a taxpayer that provides an eligible contribution under this section shall remain confidential at all times.
Section 1002.395(6)(q), F.S. (flush-left provision at end of section).
10
Sections 220.1875(1), 212.099(2), and 1002.395(5), F.S.
11
Section 1002.395(6)(d), F.S. An eligible contribution is a monetary contribution from a taxpayer to an eligible nonprofit SFO. The
taxpayer may not designate a specific child as the beneficiary of the contribution. Section 1002.395(2)(e), F.S.
12
Section 1002.395(5) and (12), F.S. STORAGE NAME: h0001b.PKA PAGE: 3
DATE: 2/24/2023
The FTC provides scholarships to students, with priority given to children from low-income families and
those who are in foster care or out-of-home care.
13
Contingent upon available funds, a student is
initially eligible for a FTC scholarship if he or she meets one or more of the following criteria:
The student is on the direct certification list
14
or the student’s household income level does not
exceed an adjusted maximum percent of the federal poverty level (FPL), which is set at 400
percent of the FPL ($111,000
15
for a family of four) for the 2022-2023 school year.
16
The student is currently placed, or during the previous state fiscal year was placed, in foster
care or in out-of-home care.
17
The student is a sibling of a student participating in the FTC scholarship and the siblings reside
in the same household.
18
Once a student qualifies for a FTC scholarship based on household income during their initial eligibility
year, the student continues to be eligible until he or she graduates from high school or turns 21 years
old, whichever occurs first, regardless of household income level in subsequent years.
19
A scholarship
recipient is not required to reapply annually, however, a SFO may require a recipient to annually
confirm their continued participation in the program.
20
A student is ineligible for a scholarship under the FTC if the student is:
21
enrolled in a school operating for the purpose of providing educational services to youth in
Department of Juvenile Justice commitment programs;
receiving a scholarship from another eligible SFO under this section;
receiving an educational scholarship pursuant to this chapter;
participating in a home education program;
participating in a private tutoring program;
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
enrolled in the Florida School for the Deaf and the Blind.
FTC Scholarship Award Amount
13
Section 1002.395(3)(b), F.S. (flush left provision at end of subsection). Priority for an initial FTC scholarship must be given to a
student whose household income level does not exceed 185 percent of the FPL ($51,337.50 for a family of four for the 2022-2023
school year) or who is in foster care or out-of-home care. See Step Up for Students, Florida Tax Credit Scholarship Parent Handbook
(July 2022), at 3, available at https://www.stepupforstudents.org/wp-content/uploads/2022-2023-FTC-Parent-Handbook-Final-
Draft.pdf.
14
See s. 1002.395(2)(c), F.S. “Direct certification list” means the certified list of children who qualify for the food assistance program,
the Temporary Assistance to Needy Families Program, or the Food Distribution Program on Indian Reservations provided to the DOE
by the Department of Children and Families.
15
United Stated Department of Health & Human Services, U.S. Federal Poverty Guidelines Used to Determine Financial Eligibility
for Certain Federal Programs, Chart showing multiples of the poverty guidelines for 2022, available at
https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines.
16
Section 1002.395(3)(b)1., F.S. In 2021, the Florida Legislature aligned the FTC student eligibility household income requirements
to those of the Family Empowerment Scholarship. Chapter 2021-27, L.O.F. Under current law, for eligibility income requirements, the
FPL may be increased by 25 percentage points in the fiscal year following a fiscal year in which more than 5 percent of the allowable
scholarships have not been funded. The eligibility for the 2021-2022 school year was set at 375 percent of the FPL. See also Step Up
for Students, Florida Tax Credit Scholarship Parent Handbook (July 2022), at 3, available at https://www.stepupforstudents.org/wp-
content/uploads/2022-2023-FTC-Parent-Handbook-Final-Draft.pdf.
17
Section 1002.395(3)(b)2., F.S.
18
Section 1002.395(3), F.S. (flush left provision at end of subsection).
19
Id.
20
See Step Up for Students, 2022-2023 Florida Tax Credit Scholarship Parent Handbook (July 2022), at 4-5, available at
https://www.stepupforstudents.org/wp-content/uploads/2022-2023-FTC-Parent-Handbook-Final-Draft.pdf;
AAA Scholarship Foundation, 2021-2022 Parent and School Handbook-Florida Income-Based Scholarship Program, at 5, available
at https://www.aaascholarships.org/wp-content/uploads/2022/06/Parent-and-School-Handbook_FL_2021-22_v3_rev20220616.pdf.
21
Section 1002.395(4), F.S. STORAGE NAME: h0001b.PKA PAGE: 4
DATE: 2/24/2023
A FTC scholarship may be used to cover the tuition and fees for a student to attend an eligible private
school.
22
The scholarship amount awarded to a student who received a scholarship in the 2018-2019
school year, who remains eligible, and who is enrolled in an eligible private school is the greater of:
23
the calculated amount for a student to attend an eligible private school is 95 percent of the
unweighted full-time equivalent (FTE) basic program funds
24
the student would generate in the
school district in which the student resides based on grade level, plus a per-full-time equivalent
share of funds for all Florida Education Finance Program (FEFP) categorical programs,
25
except
for the Exceptional Student Education (ESE) Guaranteed Allocation;
26
or
a percentage of the unweighted FTC funding amount for the 2018-2019 state fiscal year as
follows:
o eighty-eight percent of the unweighted FTE for grades K-5;
o ninety-two percent of the unweighted FTE for grades 6-8; and
o ninety-six percent of the unweighted FTE for grades 9-12.
For students initially eligible in the 2019-2020 and 2020-2021 school years, the calculated scholarship
amount is 95 percent of the unweighted FTE basic program funds the student would generate in the
school district in which the student resides based on grade level, plus a per-full-time equivalent share of
funds for all FEFP categorical programs, except for the ESE Guaranteed Allocation.
27
Effective with the 2021-2022 school year, the Legislature increased the FTC scholarship amount to be
the full amount provided for the student, from the previously 95 percent calculated amount.
28
The
maximum scholarship award amount for the 2021-2022 school year was $7,408 per student.
29
In lieu of a scholarship for enrollment in a private school, a student may receive a scholarship for
transportation to a public school other than the public school to which the student was assigned.
30
The
transportation scholarship award must be an amount equal to the school district expenditure per
student riding a school bus, as determined by the DOE, or $750, whichever is greater.
31
During the 2021-2022 school year, 85,612 students were awarded a FTC scholarship.
32
Responsibilities of FTC Scholarship Recipients
Participation in the FTC scholarship requires parents and students to fulfill the following responsibilities:
Parents must select an eligible private school,
33
apply for admission, and notify the school
district when the student is withdrawn from a public school.
22
Section 1002.395(6)(c)1., F.S.
23
Section 1002.395(11)(a) F.S. (2020).
24
Florida Department of Education, 2021-22 Funding for Florida School Districts, available at
http://www.fldoe.org/core/fileparse.php/7507/urlt/Fefpdist.pdf. Basic program funds are used to fund kindergarten and grades 1-12.
25
Section 1011.62(6)(a), F.S. Categorical program funds are state funding allocations earmarked for certain programs or initiatives
that can only be spent for the specific purposes of those programs or initiatives. These funds comprise a portion of total state funds for
public school operations and are in addition to base state FEFP funds.
26
Section 1002.395(11)(a)1., F.S.
27
Section 1002.395(11)(a)2., F.S. (2020).
28
Section 1002.395(11)(a)2., F.S. (2021); See also s. 5, ch. 2021-27, L.O.F. The calculated scholarship award amount of the full
amount provided for the student, effective with the 2021-2022 school year, is for a FTC scholarship recipient initially eligible in the
2019-2020 school year and thereafter, and a student initially eligible in the 2018-2019 school year if the calculated amount is greater
than the scholarship award in the 2018-2019 school year.
29
Florida Department of Education, FTC Scholarship Program: Fact Sheet (Oct. 2022), available at
https://www.fldoe.org/core/fileparse.php/5606/urlt/FTC-Oct-2022-line.pdf.
30
Section 1002.395(11)(a)3., F.S.
31
Id. Effective for the 2022-2023 school year, the previous transportation scholarship amount of up to $750 was revised to allow for
the amount of the transportation expenditure by the school district for the student, or $750, whichever is greater. Section 13, ch. 2022-
154, L.O.F.
32
Florida Department of Education, Florida Tax Credit Scholarship Program: June 2022 Quarterly Report (June 2022), available at
https://www.fldoe.org/core/fileparse.php/7558/urlt/FTC-Jun-2022-Q-Report.pdf [hereinafter June Quarterly Report]. STORAGE NAME: h0001b.PKA PAGE: 5
DATE: 2/24/2023
Students must attend school (unless excused by the school for illness or good cause).
Students and parents must comply with the private school’s published policies.
Parents must ensure student participation in the norm-referenced assessment offered by the
private school, unless the private school chooses to administer statewide assessments, in which
case, the student must participate in statewide assessments. If the private school the student
attends does not administer statewide assessments, a parent may request that the student be
administered a statewide assessment in addition to the norm-referenced assessment
administered by the private school.
Parents must restrictively endorse (sign) the scholarship check for the private school and are
prohibited from designating any individual or entity associated with their student’s private school
as their attorney for purposes of endorsing scholarship payment checks or approving a fund
transfer before deposit.
Parents must authorize the SFO to access information necessary to determine income eligibility,
including information held by state and federal agencies.
34
Disbursement of FTC Scholarship Award
The SFO sends scholarship payment checks quarterly to each student’s school of enrollment, after the
school completes the attendance verification. The school then notifies the parent that the check has
arrived and asks the parent to come in to the school to restrictively endorse (sign) the check in order for
the school to deposit the check.
35
A SFO may also make scholarship payments directly to eligible private schools by funds transfer
(including debit cards, electronic payment cards, or any other means the DOE deems commercially
viable or cost-effective). Payments must be approved by the parent before the funds are deposited.
36
School Attendance
With few exceptions, Florida law requires all children who will be six years of age on February 1, of
each school year and are less than 16 years of age to attend school regularly. Children who will be five
years of age by September 1, of each school year are eligible for public kindergarten.
37
State law directs district school boards to establish attendance policies defining excused or unexcused
absences or tardiness. Specific criteria for determining whether an absence or tardiness is excused or
unexcused are determined by the district school board.
38
The parent of a student who is absent from
school must justify the absence, and the absence is evaluated based on the school board’s attendance
policies.
39
Regular attendance, as required under the law, can be satisfied by attendance in:
40
a public school supported by public funds;
a parochial, religious, or denominational school;
a private school supported in whole or in part by tuition charges or by endowments or gifts;
a home education program; or
33
A private school is eligible to participate in the FTC is they meet statutory criteria for participation in state scholarship programs
under s. 1002.421(1), F.S., annually administer or make provisions for students in grades 3 through 10 to participate in one of the
nationally norm-referenced tests identified by the DOE or the statewide assessments
33
and report the student’s scores to a selected state
university, and administer the statewide assessments if the private school chooses to offer the statewide assessments. Section
1002.395(8)(a)-(b), F.S.; See also Rule 6A-6.03215, F.A.C.
34
Section 1002.395(7)(a)-(g), F.S.
35
Section 1002.395(11)(b), F.S.
36
Id.
37
Section 1003.21(1)(a), F.S.
38
Section 1003.24, F.S. (flush-left provisions at end of section).
39
Section 1003.26, F.S.
40
Section 1003.01(13), F.S. STORAGE NAME: h0001b.PKA PAGE: 6
DATE: 2/24/2023
a private tutoring program.
Home Education Programs
Home education is a parent-directed educational option that satisfies the requirement for regular school
attendance. Florida laws protecting home education became effective in 1985. For the 2021-2022
school year 152,109 students participated in home education programs throughout Florida.
41
Home education students are eligible, as provided by law, to participate in a number of district and
state programs such as:
interscholastic extracurricular student activities;
42
the Bright Futures Scholarship Program;
43
dual enrollment programs;
44
admission to Florida College System institutions;
45
admission to state universities;
46
and
a FES-UA scholarship.
47
Additionally, school districts may provide home education students special education-related services
or career and technical courses and programs.
48
School districts must make industry certification,
national assessments, and statewide, standardized assessments offered by the school district available
to home education students.
49
The DOE is also required to provide access to testing and evaluation
services at diagnostic and resource centers to home education students.
50
Effect of Proposed Changes
The bill expands eligibility for FTC scholarships to include any student who is a resident of Florida and
is eligible to enroll in kindergarten through grade 12 in a public school. The parent of an eligible student
will receive an empowerment savings account to choose among a variety of options to customize their
child’s K-12 education. In addition to expanding FTC eligibility, the bill makes the following changes:
Personalized Education Programs
The bill establishes the personalized education program as a parent directed educational choice that
must be registered with a SFO that administers FTC scholarships. The bill authorizes students in
personalized education programs to participate in the FTC scholarship program and establishes
personalized education programs as a mechanism to satisfy mandatory school attendance
requirements. Students in a personalized education program are provided access to the same
programs and services as home education program students.
The bill establishes the following responsibilities for parents and students receiving a FTC scholarship
while participating in a personalized education program:
Apply to an eligible SFO to participate in the program by a date set by the organization. The
request must be communicated directly to the organization in a manner that creates a written or
electronic record of the request and the date of receipt of the request.
41
The Florida Department of Education, Home Education Program, available at
https://www.fldoe.org/core/fileparse.php/5606/urlt/HomeEd-Sept-2022.pdf.
42
Section 1002.41(4), F.S.
43
Section 1002.41(5), F.S.
44
Section 1002.41(6), F.S.
45
Section 1002.41(7), F.S.
46
Section 1002.41(8), F.S.
47
Section 1002.394(4)(b)4., F.S.
48
Section 1002.41(10)-(11), F.S.
49
Section 1002.41(12), F.S.
50
Section 1002.41(9), F.S. STORAGE NAME: h0001b.PKA PAGE: 7
DATE: 2/24/2023
Sign an agreement with the SFO and annually submit a sworn compliance statement to the
organization to satisfy or maintain program eligibility, including eligibility to receive and spend
program payments, by:
o Affirming that the program funds are used only for authorized purposes serving the
student's educational needs and that they will not receive a payment, refund, or rebate
of any funds provided under this section.
o Affirming that the parent is responsible for all eligible expenses in excess of the amount
of the scholarship and for the education of his or her student.
o Submitting a student learning plan
51
to the SFO and revising the plan, at least annually
before program renewal.
o Requiring the student to take a nationally norm-referenced test identified by the DOE or
a statewide assessment and provide assessment results to the SFO before renewal.
o Renewing participation in the program each year.
o Procuring the services necessary to educate the student. When the student receives a
scholarship, the district school board is not obligated to provide the student with a free
appropriate public education.
For a scholarship student participating in a personalized education program, a SFO must:
Maintain a signed agreement from the parent which constitutes as complying with the state’s
attendance requirements.
Receive eligible student test scores, and beginning with the 2027-2028 school year, annually
report the assessment data to the state university selected by the DOE to analyze such data.
Provide parents with information, guidance, and support to create and annually update a
customized student learning plan for their student. The SFO must maintain the plan and allow
parents to electronically submit, access, and revise the plan continuously.
Upon submission by the parent of an annual student learning plan, fund a scholarship for a
student determined eligible.
With regard to personalized education program students, the bill prohibits a SFO from further
regulating, exercising control over, or requiring documentation beyond the requirements proscribed
under the law.
The bill provides the following schedule for funding FTC scholarships to eligible students that are
enrolled in a personalized education program:
For the 2023-2024 school year, no more than 20,000 scholarships may be funded.
For 2024-2025 through 2026-2027 school years, the number of funded scholarships may
increase by 40,000 each year.
For the 2027-2028 school year, every personalized education program student will have access
to an empowerment account to customize their education.
FTC Scholarships
For all students receiving a FTC scholarship, the bill expands the authorized uses of FTC scholarship
funds in an empowerment savings account to include:
Instructional materials, including digital materials and Internet resources.
Curriculum, which is a complete course of study for a particular content area or grade level,
including any required supplemental materials and associated online instruction.
Tuition or fees associated with full-time or part-time enrollment in a home education program,
an eligible postsecondary educational institution or a program offered by the postsecondary
educational institution,
52
an approved preapprenticeship program,
53
a private tutoring program,
51
The bill also defines student learning plan to mean a customized learning plan developed by a parent, at least annually, to guide
instruction for their student and identify the goods and services that are needed to address the academic needs of the student.
52
Unless the program is subject to a statutory fee exemption or the dual enrollment scholarship. STORAGE NAME: h0001b.PKA PAGE: 8
DATE: 2/24/2023
a virtual program offered by a department-approved private online provider, the Florida Virtual
School as a private paying student, or an approved online course.
Fees for nationally standardized, norm-referenced achievement tests, Advanced Placement
Examinations, industry certification examinations, assessments related to postsecondary
education, or other assessments.
Contracted services provided by a public school or school district, including classes. A student
who receives services under a contract is not considered enrolled in a public school for
scholarship eligibility purposes.
Tuition and fees for part-time tutoring services or fees for services by a choice navigator.
The bill clarifies that for a scholarship awarded to students enrolled full-time in a private school, funds
must be used for tuition and fees at the private school prior to any other authorized use and that
parents are responsible for all eligible expenses in excess of the amount of the scholarship.
The bill retains the requirement that priority for FTC scholarships be given to those students whose
household income does not exceed 185 percent of the federal poverty level or who are in foster care or
out-of-home care. Additionally, the bill expands the eligibility for public school transportation
scholarships to all students eligible for a scholarship.
The bill updates the parent and student participation responsibilities for the FTC scholarship by
requiring the parent to meet with the private school’s principal or the principal’s designee to review the
school’s academic programs and policies, specialized services, code of student conduct, and
attendance policies before enrollment. These responsibilities align with those under the FES-EO
scholarship program.
The bill updates the requirements of the FTC scholarship to be more closely aligned with the FES-EO
by providing that a student is not eligible for a FTC scholarship while he or she is:
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 the law, or a charter school. For purposes of this paragraph, a 3- or 4-year-old child who
receives services funded through the Florida Education Finance Program is considered to be a
student enrolled in a public school;
Enrolled in a school operating for the purpose of providing educational services to youth in a
Department of Juvenile Justice commitment program;
Receiving any other state-sponsored K-12 educational scholarship;
Not having regular and direct contact with his or her private school teachers unless he or she is
enrolled in a home education program or a personalized education program;
Participating in a private tutoring program unless he or she is enrolled in a home education
program or a personalized education program; or
Participating in virtual instruction that receives state-funding pursuant to the student’s
participation.
The bill requires a FTC scholarship to remain in force until:
The SFO determines that the student is not eligible for program renewal;
The Commissioner of Education suspends or revokes program participation or use of funds;
The student's parent has forfeited participation in the program for failure to comply with
statutorily required parental and student responsibilities;
The student enrolls in a public school, however, if a student enters a Department of Juvenile
Justice detention center for a period of no more than 21 days, the student is not considered to
have returned to a public school on a full-time basis for that purpose; or
The student graduates from high school or attains 21 years of age, whichever occurs first.
The bill requires that a SFO establish and maintain an empowerment savings account for each eligible
student and must maintain records of accrued interest retained in the student’s account. The parent of
53
Unless the program is subject to a statutory fee exemption. STORAGE NAME: h0001b.PKA PAGE: 9
DATE: 2/24/2023
an eligible student must approve each payment prior to the SFO transferring funds to the account by
funds transfer. The SFO may permit eligible students to use program funds by paying for the authorized
use directly, then submitting a reimbursement request to the eligible SFO. A SFO is authorized to
require direct purchases for items that are at or below market rate through an online platform.
Reimbursements are allowed for items not on the platform.
A student’s empowerment savings account must be closed, and any remaining funds will revert to the
state, after:
Denial or revocation of program eligibility by the commissioner for fraud or abuse, including, but
not limited to, the student or student's parent accepting any payment, refund, or rebate, in any
manner, from a provider of any services; or
Two consecutive fiscal years in which an account has been inactive.
Additionally, the SFO is required to verify a student’s eligibility each fiscal year, prior to granting a
scholarship for that fiscal year. A student whose participation in the program is not renewed may
continue to spend scholarship funds that are in his or her account from prior years unless the account
must be closed. The bill establishes a cap of $24,000.00 as the maximum amount a SFO is permitted
to maintain in an individual student’s empowerment savings account for a FTC scholarship.
The bill permits reimbursements for program expenditures to continue until the account balance is
expended or remaining funds have reverted to the state.
The bill defines a choice navigator to mean an individual who assists parents with the selection,
application, and enrollment in educational options that address the academic needs of their student. A
choice navigator must be a person who holds a valid Florida educator's certificate, a person who holds
an adjunct teaching certificate, a person who has a bachelor's degree or a graduate degree in the
subject area in which instruction is given, a person who has demonstrated a mastery of subject area
knowledge, or a person certified by a nationally or internationally recognized research-based training
program as approved by the department.
The bill expands the definition of eligible postsecondary educational institution to include approved
higher education institutions which participate in distance education through reciprocity agreements.
54
The bill revises the definition of an eligible contribution under FTC to mean a monetary contribution
from a taxpayer, subject to the restrictions provided in s. 1002.395, to an eligible SFOs pursuant to ss.
212.099, 212.1832, 1002.395, and 1002.40.
Family Empowerment Scholarship Program
Present Situation
The FES program provides children of families in Florida with educational options to achieve success in
their education, including children of families with limited financial resources, children of law
enforcement and military families, and children with disabilities.
55
The scholarship program includes two
types of scholarships where one assists eligible students to pay for the tuition and fees associated with
attendance at a private school or transportation to another public school (FES-EO), and the other
provides access to additional education options for a student with a disability by covering the cost of a
variety of approved items, including: contracted services, curriculum, instructional materials, tutoring,
specified education programs, and specialized services (FES-UA).
56
Each scholarship has unique
54
The National Council for State Authorization Reciprocity Agreements (NC-SARA) is a private nonprofit organization with the goal
of improving student access to distance learning. NC-SARA helps states, institutions, policymakers, and students understand the
purpose and benefits of participating in these reciprocity agreements. There are currently more than 2,200 institutions in 49 member
states, including Florida, participating in such reciprocity agreements, greatly expanding access to educational options for Florida’s
students. NC-SARA, About NC-SARA, https://www.nc-sara.org/about-nc-sara (last visited Feb. 16, 2023).
55
Section 1002.394, F.S. see also Rule 6A-6.0952, F.A.C.
56
Section 1002.394(3)(a) and (3)(b), F.S. The John M. McKay Scholarship for Students with Disabilities Program and the Gardiner
Scholarship Program were previously offered as two separate scholarships for students with disabilities before the programs were STORAGE NAME: h0001b.PKA PAGE: 10
DATE: 2/24/2023
student eligibility requirements, program requirements, award calculation methodologies, and allowable
expenditures.
57
FES-EO Eligibility
A student is eligible for a scholarship to attend private school if the student meets the following
criteria:
58
The student is on the direct certification list (list of children who qualify for the food assistance
program, the Temporary Assistance to Needy Families Program, or the Food Distribution on
Indian Reservations program) or the student’s household income level does not exceed 185
percent of the federal poverty level (FPL) ($51,337.50
59
for a family of four) for the 2022-2023
school year;
The student is currently placed, or during the previous state fiscal year was placed, in foster
care or in out-of-home care;
The student’s household income level does not exceed an adjusted maximum percent of the
FPL, which is set at 400 percent of the FPL ($111,000
60
for a family of four) for the 2022-2023
school year;
61
The student is a sibling of a student who is participating in the FES-EO and the siblings reside in
the same household;
The student is a dependent child of a member of the United States Armed Forces, including a
reservist;
62
or
The student is a dependent child of a law enforcement officer.
A student is ineligible for a scholarship under the FES-EO or FES-UA if the student is:
63
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, or a
charter school;
enrolled in a Department of Juvenile Justice commitment program;
receiving any other state-sponsored K-12 educational scholarship;
not having regular and direct contact with his or her private school teacher, unless the student
has an eligible disability and is awarded a scholarship under the FES-UA and the student is
enrolled in the private school’s transition-to-work program or a home education program;
participating in a private tutoring program, unless the student has an eligible disability and is
awarded a scholarship under the FES-UA; or
participating in a virtual instruction program.
FES-EO eligibility continues for a student receiving a scholarship to attend private school until the
student returns to a public school, graduates from high school, or turns 21 years old, whichever occurs
first, regardless if the student’s household income exceeds the FPL cap in subsequent years.
64
A
consolidated under the FES-UA. The Gardiner Scholarship was repealed effective July 1, 2021, s. 2, ch. 2021-27 L.O.F. The McKay
Scholarship was repealed effective July 1, 2022, s. 3, ch. 2021-27, L.O.F.
57
Section 1002.394, F.S.
58
Section 1002.394(3)(a)1.-6., F.S.
59
Step Up for Students, 2022-2023 Family Empowerment Scholarship for Educational Options Parent Handbook (July 2022), at 3,
available at https://www.stepupforstudents.org/wp-content/uploads/2022-2023-FES-EO-Parent-Handbook-Final-Draft.pdf.
60
Id.
61
Section 1002.394(3)(a)3., F.S. The Federal Poverty Level may be increased by 25 percentage points in the fiscal year following a
fiscal year in which more than 5 percent of the allowable scholarships have not been funded. The eligibility for the 2021-2022 school
year was set at 375 percent of the FPL.
62
A member of the United States Armed Forces means a member of the Army, Navy, Air Force, Coast Guard, Marine Corps, or Space
Force, including a Reservist. Rule 6A-6.0952(2)(f), F.A.C.
63
Section 1002.394(6)(a)-(f), F.S.
64
Section 1002.394(5)(a), F.S. STORAGE NAME: h0001b.PKA PAGE: 11
DATE: 2/24/2023
scholarship recipient who maintains continued eligibility is not required to reapply annually, however, a
SFO may require a recipient to annually confirm their continued participation in the program.
65
Number of Available FES-EO and FES-UA Awards
For the 2019-2020 school year, a maximum program capacity for FES-EO scholarships was
established at 18,000 students. Beginning in the 2020-2021 school year, the maximum number of
students participating in the scholarship program increases by one percent of the state’s total K-12 full-
time equivalent student membership each year.
66
The maximum program capacity does not include
the following students who are excluded:
67
Students who are a dependent child of a law enforcement officer or a member of the United
States Armed Forces, a foster child, or an adopted child; or
Students who meet the eligibility requirements of being on the direct certification list or meet
household income requirements or students placed in foster care or out-of-home care and either
spent the prior school year in attendance at a Florida public school, or beginning in the 2022-
2023 school year, is eligible to enroll in kindergarten.
In the 2021-2022 school year, 77,141 FES-EO scholarships were awarded to eligible students seeking
a scholarship to attend private school.
68
For the 2022-2023 school year, the maximum number of FES-UA scholarships is established at 26,500
students.
69
Beginning with the 2023-2024 school year, and annually thereafter, the maximum number
of students participating in the scholarship program annually increases by one percent of the state’s
total exceptional student education full-time equivalent student membership, not including gifted
students.
70
The maximum program capacity does not include the following students who are excluded:
71
Students who received specialized instructional services under the Voluntary Prekindergarten
Education Program during the previous school year;
Students who are a dependent child of a law enforcement officer or a member of the United
States Armed Forces, a foster child, or an adopted child; or
Students who spent the prior school year in attendance at a Florida public school or received a
McKay Scholarship in the 2021-2022 school year.
In the 2021-2022 school year, 25,049 FES-UA scholarships were awarded to eligible students with a
disability.
72
Priority for FES-EO Awards
A participating SFO must award a FES-EO scholarship in accordance with the priorities established in
law. For a student seeking a scholarship to attend private school, the award priority must be given to a
65
See Step Up for Students, 2022-2023 Family Empowerment Scholarship for Educational Options Parent Handbook (July 2022), at
12-13, available at https://www.stepupforstudents.org/wp-content/uploads/2022-2023-FES-EO-Parent-Handbook-Final-Draft.pdf.;
AAA Scholarship Foundation, 2021-2022 Parent and School Handbook-Florida Income-Based Scholarship Program, at 5, available
at https://www.aaascholarships.org/wp-content/uploads/2022/06/Parent-and-School-Handbook_FL_2021-22_v3_rev20220616.pdf.
66
Section 1002.394(12)(a)1., F.S.
67
Section 1002.394(12)(a)1.a.-b., F.S.
68
Adam Emerson, Florida Department of Education, School Choice Overview, presentation before the Choice & Innovation
Subcommittee, (Jan. 19, 2023).
69
Section 1002.394(12)(b)1., F.S.
70
Section 1002.394(12)(b)1., F.S.
71
Section 1002.394(12)(b)1.a.-c., F.S. See also Florida Department of Education, State Board of Education August 18, 2021 Agenda,
Family Empowerment Scholarship Program Presentation, at 5, available at https://www.fldoe.org/core/fileparse.php/19998/urlt/6-
3.pdf.
72
Adam Emerson, Florida Department of Education, School Choice Overview, presentation before the Choice & Innovation
Subcommittee, (Jan. 19, 2023). STORAGE NAME: h0001b.PKA PAGE: 12
DATE: 2/24/2023
student whose household income level does not exceed 185 percent of the FPL or who is in foster care
or out-of-home care.
73
FES-EO Award Amount
The FES-EO is funded through the Florida Education Finance Program (FEFP) with a scholarship
awarded by a SFO.
74
A FES-EO scholarship award amount for a student to attend an eligible private
school is calculated as 100 percent of the school districts funding per student, including all categorical
funds, except for the exceptional student education (ESE) guaranteed allocation.
75
The DOE
determines the appropriate student scholarship funding amount and cross-checks scholarship students
with public school enrollment to avoid duplication.
76
Upon receiving documentation which verifies a student’s participation in the scholarship from the SFO,
the DOE must transfer scholarship funds to the SFO for disbursement to parents of participating FES-
EO students.
77
Initial scholarship payments are made after the SFO verifies the student’s admission
acceptance to an eligible private school, with all subsequent scholarship payments occurring upon
verification of continued enrollment and attendance at the private school.
78
Any scholarship payment
made by warrant must be delivered by the SFO to the private school of the parent’s choice, and the
parent must restrictively endorse (sign) the payment.
79
For each FES-EO scholarship, the DOE must cross-check the list of participating scholarship students
with public school enrollment and adjust payments to a SFO and school districts based upon these
results when the FEFP is recalculated.
80
Responsibilities of FES-EO Recipients
Parents and students receiving a FES-EO scholarship must fulfill the following responsibilities:
81
Select the private school and apply for the admission of his or her student.
Request the scholarship by a date established by the organization, in a manner that creates a
written or electronic record of the request and the date of receipt of the request.
Inform the applicable school district when the parent withdraws his or her student from a public
school to attend an eligible private school.
Require his or her student participating in the program to remain in attendance throughout the
school year unless excused by the school for illness or other good cause.
Meet with the private school’s principal or the principal’s designee to review the school’s
academic programs and policies, customized educational programs, code of student conduct,
and attendance policies prior to enrollment.
Require that the student participating in the scholarship program takes the norm-referenced
assessment offered by the private school.
82
73
Section 1002.394(3)(a), F.S. (flush left provision at end of subparagraph).
74
Section 1002.394(8)(a)2., (11)(a)1., (11)(b)1., and (12)(a), F.S. The department must notify the SFO that scholarships may not be
awarded in a school district in which the scholarship award will exceed 99 percent of the school district’s share of the state FEFP
funds as calculated by the department. Section 1002.394(8)(a)13., F.S.
75
Section 1002.394(12)(a)2., F.S. See also Step Up For Students, Income-Based Scholarship Programs Basic Scholarship Amounts
for 2022-23, available at https://www.stepupforstudents.org/wp-content/uploads/Step-Up-For-Students_Income-Based-Scholarship-
Amounts.pdf.
76
Id.
77
Section 1002.394(12)(a)5., F.S. Scholarship payments are made to the SFO on or before September 1, November 1, February 1, and
April 1 of each year. Rule 6A-6.0952, F.A.C.
78
Section 1002.394(12)(a)6., F.S.
79
Section 1002.394(12)(a)6., F.S. See also s. 1002.394(10)(a)7., F.S.
80
Section 1002.391(8)(a)14., F.S. The FEFP is calculated five times throughout the year to arrive at each year’s final appropriations.
See Florida Department of Education, 2021-22 Funding for Florida School Districts, at 25, available at
https://www.fldoe.org/core/fileparse.php/7507/urlt/Fefpdist.pdf.
81
Section 1003.394(10)(a)6., F.S.
82
The parent and student may also elect to participate in the statewide, standardized assessment administered by the school district.
The parent is responsible for transporting the student to the assessment. Section 1003.394(10)(a)6., F.S. STORAGE NAME: h0001b.PKA PAGE: 13
DATE: 2/24/2023
Restrictively endorse the warrant, issued in the name of the parent, to the private school for
deposit into the private school’s account. 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.
Responsibilities of FES-UA Recipients
Parents and students receiving a FES-UA scholarship must fulfill the following responsibilities:
Apply to an eligible nonprofit scholarship-funding organization to participate in the program by a
date set by the organization.
Sign an agreement with the organization and annually submit a sworn compliance statement to
the organization to satisfy or maintain program eligibility, including eligibility to receive and
spend program payments by:
o Affirming that the student is enrolled in a program that meets regular school attendance
requirements.
o Affirming that the program funds are used only for authorized purposes serving the
student’s educational needs; that any prepaid college plan or college savings plan funds
contributed will not be transferred to another beneficiary while the plan contains funds
contributed from the FES-UA scholarship; and that they will not receive a payment,
refund, or rebate of any funds provided under this section.
o Affirming that the parent is responsible for all eligible expenses in excess of the amount
of the scholarship and for the education of his or her student by, as applicable:
Requiring the student to take a norm-referenced assessment or the statewide,
standardized assessment;
Providing an annual home education program evaluation; or
Requiring the child to take any preassessments and postassessments selected
by the provider if the child is 4 years of age and is enrolled in a program provided
by an eligible Voluntary Prekindergarten Education Program provider.
83
o Affirming that the student remains in good standing with the provider or school if those
options are selected by the parent.
o Enrolling his or her child in a program from a Voluntary Prekindergarten Education
Program provider, a school readiness provider, or an eligible private school if either
option is selected by the parent.
o Renewing participation in the program each year.
o Procuring the services necessary to educate the student.
Authorized uses for FES-EO Awards
A FES-EO scholarship may be used to cover the tuition and fees for a student to attend an eligible
private school.
84
The scholarship award may be used to cover the cost of any assessment fee required
by the participating private school and any costs to provide a digital device, including internet access, to
the student.
85
A scholarship in the amount of $750 or an amount equal to the school district expenditure
per student riding a bus, whichever is greater, may also be awarded to an eligible student
86
enrolled in
a Florida public school which is different from the school to which the student was assigned or in a lab
school, if the school district does not provide the student with transportation to the school.
87
Authorized uses for FES-UA Awards
83
A student with disabilities for whom the physician or psychologist who issued the diagnosis or the IEP team determines that a
preassessment and postassessment is not appropriate is exempt from this requirement. Section 1003.394(10)(b)2.c.(III), F.S.
84
Section 1002.394(12)(a)2., F.S.
85
Id.
86
Section 1002.394(12)(a)4., F.S. The student must be on the direct certification list, the student’s household income level does not
exceed 185 percent of the federal poverty index, or the student is placed in foster care or in out-of-home care.
87
Section 1002.394(12)(a)4., F.S. The district expenditure per student riding a school bus is the amount determined by the DOE. STORAGE NAME: h0001b.PKA PAGE: 14
DATE: 2/24/2023
A FES-UA scholarship for an eligible student with a disability may be used to cover the following
expenses:
88
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;
A complete course of study for a particular content area or grade level, including any required
supplemental materials and associated online instruction;
Specialized services
89
by approved providers or by a hospital in this state which are selected by
the parent;
Tuition or fees associated with full-time or part-time enrollment in a home education program, an
eligible private school, an eligible postsecondary educational institution or a program offered by
the postsecondary educational institution, a private tutoring program authorized, a virtual
program offered by an approved private online provider, the Florida Virtual School as a private
paying student, or an approved online course;
Fees for nationally standardized, norm-referenced achievement tests, Advanced Placement
Examinations, industry certification examinations, assessments related to postsecondary
education, or other assessments;
Contributions to the Stanley G. Tate Florida Prepaid College Program or the Florida College
Savings Program for the benefit of the eligible student;
Contracted services provided by a public school or school district, including classes;
90
Tuition and fees for part-time tutoring services;
Fees for specialized summer education programs or specialized after-school education
programs;
Transition services provided by job coaches;
Fees for a home education student’s annual evaluation of educational progress by a state-
certified teacher;
Tuition and fees associated with a Voluntary Prekindergarten Education Program or school
readiness program;
Fees for services provided at a center that is a member of the Professional Association of
Therapeutic Horsemanship International; or
Fees for services provided by a therapist who is certified by the Certification Board for Music
Therapists or credentialed by the Art Therapy Credentials Board, Inc.
Effect of Proposed Changes
FES-EO Scholarship
The bill expands eligibility for FES-EO scholarships to include any student who is a resident of Florida
and is eligible to enroll in kindergarten through grade 12 in a public school. The parent of an eligible
student will receive an empowerment savings account to customize their child’s K-12 education.
The bill expands the authorized uses of FES-EO scholarship funds in an empowerment savings
account to include:
Instructional materials, including digital materials and Internet resources.
Curriculum, which is a complete course of study for a particular content area or grade level,
including any required supplemental materials and associated online instruction.
Tuition or fees associated with full-time or part-time enrollment in a home education program,
an eligible postsecondary educational institution
91
or a program offered by the postsecondary
88
Section 1002.394(4)(b)1.-15., F.S.
89
Specialized services may include, but are not limited to, applied behavior analysis services, services provided by speech-language
pathologists, occupational therapy services, services provided by physical therapists, or services provided by listening and spoken
language specialists.
90
A student who receives services under such a contract is not considered enrolled in a public school for scholarship eligibility
purposes. STORAGE NAME: h0001b.PKA PAGE: 15
DATE: 2/24/2023
educational institution,
92
an approved preapprenticeship program,
93
a private tutoring program,
a virtual program offered by a department-approved private online provider, the Florida Virtual
School as a private paying student, or an approved online course.
Fees for nationally standardized, norm-referenced achievement tests, Advanced Placement
Examinations, industry certification examinations, assessments related to postsecondary
education, or other assessments.
Contracted services provided by a public school or school district, including classes. A student
who receives services under a contract is not considered enrolled in a public school for
scholarship eligibility purposes.
Tuition and fees for part-time tutoring services or fees for services by a choice navigator.
To reflect the expanded authorized uses beyond just tuition and fees at a private school, the bill
provides that the scholarship amount shall be the calculated amount the student would have generated
through the FEFP, rather than the lesser amount of either the calculated funds or the cost of tuition and
fees. However, the bill clarifies that for a scholarship awarded to students enrolled full-time in a private
school, funds must be used for tuition and fees at the private school prior to any other authorized use
and that parents are responsible for all eligible expenses in excess of the amount of the scholarship.
The bill retains the requirement that priority for FES-EO scholarships be given to those students whose
household income does not exceed 185 percent of the federal poverty level or who are in foster care or
out-of-home care. Additionally, the bill expands the eligibility for public school transportation
scholarships to all students eligible for a scholarship. The bill removes the existing FES-EO scholarship
growth provisions.
The bill requires a FES-EO scholarship to remain in force until:
The SFO determines that the student is not eligible for program renewal;
The Commissioner of Education suspends or revokes program participation or use of funds;
The student's parent has forfeited participation in the program for failure to comply with
statutorily required parental and student responsibilities;
The student enrolls in a public school, however, if a student enters a Department of Juvenile
Justice detention center for a period of no more than 21 days, the student is not considered to
have returned to a public school on a full-time basis for that purpose; or
The student graduates from high school or attains 21 years of age, whichever occurs first.
The bill requires that a SFO establish and maintain an empowerment savings account for each eligible
student and must maintain records of accrued interest retained in the student’s account. The parent of
an eligible student must approve each payment prior to the SFO transferring funds to the account by
funds transfer.
A SFO may permit a FES-EO student to use program funds by paying for the authorized use directly,
then submitting a reimbursement request to the eligible SFO. A SFO is authorized to require direct
purchases by a FES-EO student for items that are at or below market rate through an online platform.
Reimbursements are allowed for items not on the platform.
A student’s empowerment savings account must be closed, and any remaining funds will revert to the
state, after:
Denial or revocation of program eligibility by the commissioner for fraud or abuse, including, but
not limited to, the student or student's parent accepting any payment, refund, or rebate, in any
manner, from a provider of any services; or
Two consecutive fiscal years in which an account has been inactive.
91
“Eligible postsecondary educational institution” includes institutions that offer distance learning under a reciprocity agreement. See,
supra, text accompanying note 54.
92
Unless the program is subject to a statutory fee exemption or the dual enrollment scholarship.
93
Unless the program is subject to a statutory fee exemption. STORAGE NAME: h0001b.PKA PAGE: 16
DATE: 2/24/2023
Additionally, the SFO is required to verify a student’s eligibility each fiscal year, prior to granting a
scholarship for that fiscal year. A student whose participation in the program is not renewed may
continue to spend scholarship funds that are in his or her account from prior years unless the account
must be closed. The bill establishes a cap of $24,000.00 as the maximum amount a SFO is permitted
to maintain in an individual student’s empowerment savings account for a FES-EO scholarship.
The bill permits reimbursements for program expenditures to continue until the account balance is
expended or remaining funds have reverted to the state.
FES-UA Scholarship
To increase the number of eligible students with disabilities served by the scholarship, the bill increases
the scholarship capacity from 1 to 3 percent of the state’s total exceptional student education student
membership annually.
The bill authorizes a SFO that administers FTC scholarships to use any excess tax credit funds, after
all FTC scholarships have been funded, to fund eligible FES-UA students on a waitlist. FES -UA
scholarships funded with excess tax credit funds are not included in the calculation when the SFO
determines the maximum number of allowable FES-UA scholarships.
The bill also expands the authorized uses of a FES-UA scholarship to include preapprenticeship
programs or fees for services provided by a choice navigator. Additionally, FES-UA students may now
use scholarship funds for distance learning at postsecondary educational institutions with reciprocity
agreements.
The bill requires that private schools accepting FES-UA scholarships discuss with the parent, before
enrollment, the school’s academic programs, and policies and specialized services which may meet the
student’s individual needs.
The bill establishes a cap of $50,000.00 as the maximum amount a SFO is permitted to maintain in an
individual student’s empowerment savings account for a FES-UA scholarship.
DOE Scholarship Oversight and SFO Administration
Present Situation
DOE Oversight
The DOE must fulfill the following responsibilities for all state scholarship programs:
94
Annually verify the private schools eligible to participate.
Establish a toll-free hotline to provide parents and private schools with information about
participating in the scholarship programs.
Establish a process to allow individuals to notify the DOE of violations of state law relating to a
scholarship program.
Annually receive and retain from every participating private school a notarized, sworn
compliance statement certifying compliance with state law.
Coordinate with the entities conducting the health inspections and fire inspections for private
schools to obtain copies of the inspection reports directly from the entities.
Provide, at no cost to the school, the statewide assessments and any related materials for
administering the assessments.
Conduct site visits to schools entering a scholarship program for the first time. A school is not
eligible to receive scholarship funds until a satisfactory site visit is completed and the school
complies with all other requirements in law.
Maintain a list of nationally norm-referenced tests identified for purposes of satisfying
scholarship program assessment requirements.
95
94
Section 1002.421(2)(a), F.S. STORAGE NAME: h0001b.PKA PAGE: 17
DATE: 2/24/2023
The DOE is authorized to conduct site visits to any private school participating in a state scholarship
program that has received a complaint about a violation of state law or state board rule or has received
a notice of noncompliance or a notice of proposed action within the previous two years.
96
The DOE
must annually submit, by December 15, a report to the Governor, the President of the Senate, and the
Speaker of the House of Representatives which describes its implementation of the accountability
measures in the scholarship programs, any substantiated allegations or violations of law or rule by a
private school, and the corrective action taken.
97
The DOE is required to issue a project grant award to a state university, to which participating private
schools must report the scores of participating scholarship students on the nationally norm-referenced
tests or the statewide assessments administered by the private school in grades 3 through 10.
98
The
state university must annually report to the DOE on the student performance of participating students:
99
On a statewide basis. The report shall also include, to the extent possible, a comparison of
scholarship students' performance to the statewide student performance of public school
students with socioeconomic backgrounds similar to those of students participating in the
scholarship program; and
On an individual school basis. The annual report must include student performance for each
participating private school in which at least 51 percent of the total enrolled students in the
private school participated the FTC program in the prior school year.
Scholarship Funding Organizations
Florida’s scholarship programs are administered by DOE approved non-profit scholarship-funding
organizations (SFO).
100
Presently, there is one application cycle annually for entities desiring to serve
as a SFO. Applications, containing the information required by law, must be submitted to the DOE by
September 1 of the year before the school year the organization intends to offer scholarships.
101
A SFO
must be a state university; or an independent college or university that is eligible to participate in the
William L. Boyd, IV, Effective Access to Student Education Grant Program, located and chartered in
this state, is not for profit, and is accredited by the Commission on Colleges of the Southern
Association of Colleges and Schools; or is a Florida based charitable organization that complies with
scholarship program requirements.
102
There are currently two SFOs approved to administer the FES-
EO, the FES-UA, the FTC, the HOPE, and the Reading Scholarship Programs.
103
As a part of their duties of management and distribution of scholarships, current law authorizes a SFO
to use from tax credit contributions received up to 2.5 percent (FES) and 3 percent (FTC) of the total
amount of scholarships funded by the organization for administrative expenses.
104
Effect of Proposed Changes
95
Sections 1002.394(8)(a)3. and 1002.395(9)(e), F.S.
96
Section 1002.421(2)(b), F.S.
97
Section 1002.421(2)(c), F.S.
98
Section 1002.395(9)(f), F.S.
99
Section 1002.395(9)(f)1., F.S.
100
Florida Department of Education, Scholarship Funding Organizations, https://www.fldoe.org/schools/school-choice/k-12-
scholarship-programs/sfo/ (last visited Jan. 12, 2023).
101
Section 1002.395(15), F.S.
102
Section 1002.395(1)(f), F.S.
103
Florida Department of Education, Scholarship Funding Organizations, https://www.fldoe.org/schools/school-choice/k-12-
scholarship-programs/sfo/ (last visited Jan. 12, 2023). Specifically, the A.A.A. Scholarship Foundation administers FTC, FES-EO, and
FES-UA scholarships while Step Up for Students administers FTC, FES-EO, FES-UA, HOPE, and Reading Scholarship Program
scholarships. See A.A.A. Scholarship Foundation, Florida Parents, https://www.aaascholarships.org/parents/florida/ (last visited Jan.
15, 2023) and Step Up For Students, Scholarships to Give Florida Students Educational Options,
https://www.stepupforstudents.org/scholarships/ (last visited Jan. 15, 2023).
104
Sections 1003.394(11)(a)4. and 1003.395(6)(j)1., F.S. For SFOs offering FTC scholarships, the organization may use eligible
contributions for administrative expenses only if they have had no findings of material weakness or material noncompliance in its
annual financial audit for the preceding 3 fiscal years. Section 1003.395(6)(j)1., F.S. STORAGE NAME: h0001b.PKA PAGE: 18
DATE: 2/24/2023
DOE Oversight
The bill requires the DOE to include coordination with and the reporting by SFOs of personalized
education student assessment data in the grant award issued to a state university for the compiling and
analysis of scholarship recipient assessment data. The bill expands the required report under this grant
to cover all private schools at which a scholarship student attended rather than only those schools
where 51 percent or more of the students received scholarships. Additionally, the bill requires the report
to include performance on an individual school basis for both FTC and FES-EO scholarships.
Beginning with the 2027-2028 school year report, and annually thereafter, the report must include
assessment data from personalized education students on a statewide basis reported by SFOs.
The bill also requires that the DOE report as part of the determination of full-time equivalent
membership, all students who are receiving a FES scholarship program and funded in the FEFP. The
DOE must inform SFOs that students may not be submitted for FES funding after February 1, each
year.
The bill requires the DOE to annually publish its list of nationally norm-referenced tests identified for
purposes of satisfying scholarship program assessment requirements.
To assist school districts in their budgeting processes, the bill requires the DOE to report to school
districts the consensus estimate of FTC and FES-EO enrollment in the subsequent school year.
The bill requires that the DOE have at least two application periods for charitable organizations to apply
to be SFOs in Florida.
SFO Administration
To provide guidance to scholarship recipients on allowable expenditures under Florida’s scholarship
programs, the bill requires SFOs to participate in a joint development of agreed-upon purchasing
guidelines. The jointly developed purchasing guidelines must be provided to the Commissioner of
Education and published to the SFO’s website by December 31, 2023, and annually thereafter,
however the SFOs must publish the guidelines within 30 days of any amendments.
The bill authorizes a SFO that administers the FES-EO or FES-UA scholarship to use up to 3 percent
of the total funded scholarships for administrative expenses if the SFO expended 75 percent of tax
credit revenue on FTC scholarships the prior fiscal year.
The bill authorizes an out-of-state nonprofit organization that administers a scholarship program in
another state to use financial audits from the other state program as a basis for satisfying statutory
requirements for administrative expenses. An organization would, therefore, be authorized to use
contributions for administrative costs, if it can demonstrate 3 years of clear financial audits while
administering another state’s scholarship program. The audits must be for the preceding three fiscal
years and be free of material misstatements and going concern issues.
The bill requires SFOs to notify parents that participation in the FTC or FES-EO scholarship programs
does not guarantee enrollment at any particular private school.
Part-time Enrollment in Public Schools
Present Situation
At least 12 states expressly permit students to enroll in public school part-time.
105
These states vary
greatly in the scope of the authorization for part-time enrollment, specifically, six permit both home
school students and private school students to enroll part-time in public schools while three permit only
105
ExcelinEd, Part-time Enrollment Policy Analysis June 2021, at 1, available at https://excelined.org/wp-
content/uploads/2021/06/ExcelinEd_PolicyAnalysis_PartTimeEnrollment_June2021.pdf. STORAGE NAME: h0001b.PKA PAGE: 19
DATE: 2/24/2023
home school students and three permit only private school students to enroll part-time.
106
Additionally in
the funding provided to school districts when a student enrolls part-time varies between these states
with some providing funding based on instructional time while others provide only a flat rate for part-
time students.
107
Florida law does not expressly authorize or prohibit part-time enrollment in public schools. However, for
the purpose of funding Florida’s school districts, the FEFP does provide a definition of a “part-time
student” and authorizes a district to receive funding for the student proportional to the amount of
instructional hours provided by the school divided by the minimum term.
108
Effect of Proposed Changes
The bill expressly authorizes any public school in the state, including charter schools, to enroll a
student on a part-time basis, subject to space and availability. Students that attend public school part-
time generate FTE student membership consistent with the definition of “part-time student” currently in
law. The bill clarifies that students enrolled in public school part-time are not considered to be in regular
attendance at a public school.
B. SECTION DIRECTORY:
Section 1: Amending s. 212.099, F.S.; conforming a cross-reference.
Section 2: Amending s. 327.371, F.S.; conforming cross-references.
Section 3: Amending s. 1002.01, F.S.; defining the term "personalized education program."
Section 4: Amending s. 1002.394, F.S.; providing and revising definitions; revising student eligibility
and ineligibility requirements for the Family Empowerment Scholarship Program;
revising the approved uses of scholarship funds; providing that certain scholarships
remain in force until certain criteria are met; requiring the closure of a scholarship
account and the reversion of funds to the state under certain circumstances; authorizing
reimbursements for certain expenditures until certain criteria are met; revising
obligations of school districts, the Department of Education, private schools, and eligible
nonprofit scholarship-funding organizations; revising responsibilities of parents; requiring
scholarship funds to be deposited by funds transfers rather than through warrant
endorsement; requiring certain criteria to be met before the funding of certain
scholarships; revising provisions for the calculation of an award amount for certain
students; prohibiting the transfer of funds to an eligible student's account under certain
conditions; deleting obsolete language; conforming provisions and cross-references to
changes made by the act.
Section 5: Amending s. 1002.395, F.S.; providing and revising definitions; revising student eligibility
and ineligibility requirements for the Florida Tax Credit Scholarship Program; revising
obligations of eligible nonprofit scholarship-funding organizations and the department;
establishing certain limitations on the number of scholarships funded through the
program; revising the approved uses of scholarship funds; revising the amount of funds
that must be expended through scholarships; revising responsibilities of parents;
requiring scholarship funds to be deposited by funds transfers rather than through
warrant endorsement; revising the requirements of a specified annual report; prohibiting
the transfer of funds to an eligible student's account under certain conditions; providing
that certain scholarships remain in force until certain criteria are met; authorizing
reimbursements for certain expenditures until certain criteria are met; requiring the
106
Id. at 3.
107
Id.
108
Section 1011.61, F.S. The minimum term is 180 actual teaching days or the equivalent on an hourly basis as set forth in rules of the
State Board of Education (SBE). A school district may alter the minimum term only as authorized in SBE rule. Section 1011.60(2),
F.S. STORAGE NAME: h0001b.PKA PAGE: 20
DATE: 2/24/2023
closure of a scholarship account and the reversion of funds to the state under certain
circumstances; requiring the Office of Independent Education and Parental choice to
provide a specified number of application periods for specified purposes; deleting
obsolete language; conforming provisions and cross-references to changes made by the
act.
Section 6: Amending s. 1002.40, F.S.; conforming a cross-reference.
Section 7: Amending s. 1002.421, F.S.; conforming a cross-reference.
Section 8: Creating s. 1002.44, F.S.; authorizing public schools, including charter schools, to enroll
certain students on a part-time basis; providing funding for such students; providing that
such students are not considered to be in regular attendance at such schools.
Section 9: Amending s. 1003.01, F.S.; conforming a cross-reference.
Section 10: Amending s. 1003.27, F.S.; conforming a cross-reference.
Section 11: Amending s. 1009.30, F.S.; conforming a cross-reference.
Section 12: Providing an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
Two components of the PCS for CS/HB 1 have a fiscal impact: (1) expanding the eligibility of the
FES-EO scholarship program to include any student who is a resident of Florida and is eligible to
enroll in kindergarten through 12
th
grade, and (2) allowing the maximum number of students
participating in the FES-UA scholarship program to annually increase by 3 percent of the total
eligible exceptional student membership instead of 1 percent. The total fiscal impact of these two
components is shown in the below table:
Estimated Fiscal Impact of the PCS for CS/HB 1
Expanding FES-EO Eligibility $112.1 million
Increasing FES-UA Annual Percent Increase $97.5 million
Total Amount $209.6 million
A more detailed summary of the fiscal impact for each component is provided below:
Expanding the Eligibility of the FES-EO Scholarship Program
The fiscal impact of this component would be the estimated number of students currently enrolled at
a private school participating in either the FES or FTC scholarship programs (or both) but who are
not currently receiving a scholarship. NOTE: Any current public school student who may elect to
“choice” a scholarship due to the expanded eligibility is already funded in the Florida Education
Finance Program (FEFP); therefore, there would be no fiscal impact.
STORAGE NAME: h0001b.PKA PAGE: 21
DATE: 2/24/2023
For private schools currently participating in either the FES or FTC scholarship programs, their total
Fiscal Year student enrollment was 302,491.
109
Applying the three-year average growth in private
school enrollments, the estimated number of students enrolled in these participating private schools
for Fiscal Year 2023-2024 is 327,653.
110
Based on historical renewal rates, this number is reduced
by 211,023 which represents the estimated number of FES and FTC scholarship students who will
renew their existing scholarships for Fiscal Year 2023-2024. Based on this reduction, the total
estimated number of private school students enrolled in participating private schools who would be
eligible for a new FES-EO scholarship in Fiscal Year 2023-2024 is 116,603.
Based on a 50 percent student participation rate, it is estimated that 58,315 private school students
would be awarded a new FES-EO scholarship in Fiscal Year 2023-2024. Since the eligibility
requirements for the FTC and FES-EO scholarships are the same, the PCS requires that a
scholarship-funding organization fund FTC scholarships prior to funding the FES-EO scholarship.
As such, the fiscal for this component is detailed in the below table:
Fiscal Year 2023-2024
Estimated Eligible
Private School
Students without
Scholarship
50% Student
Participation
Rate
Number Funded
as FTC
Scholarships
Balance Funded
as FES-EO
Scholarships
Fiscal Impact
116,630 58,315 43,408 14,907 $112.1 million
Increasing the Annual Increase for FES-UA from 1 Percent to 3 Percent
The calculation of the annual increase is based upon the total eligible exceptional student education
full-time equivalent students funded in the FEFP; which at the current 1 percent is 4,814 students.
The fiscal impact of the increase to 3 percent is provided in the below table:
Fiscal Year 2023-2024
Current 1
percent Increase
3 Percent
Annual Increase
Difference Fiscal Impact
4,814 14,442 9,628 $97.5 million
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None
2. Expenditures:
None
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None
D. FISCAL COMMENTS:
The fiscal impact is based upon the changes made by the PCS for CS/HB 1. On February 6, 2023, the
Education Estimating Conference adopted a new full-time equivalent (FTE) student forecast for Fiscal
Year 2023-2024 which includes a total of 3,034,172.60 FTE students. Included in this total number is
180,081.92 FES-EO scholarship FTE which will be included in the funding of the FEFP.
109
Data provided by the Department of Education.
110
The Department of Education collects private school enrollment data at the end of a school year; therefore, the most recent
available private school enrollment data is for Fiscal Year 2021-2022. STORAGE NAME: h0001b.PKA PAGE: 22
DATE: 2/24/2023
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
None.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not provide any additional rulemaking authority, however, rules adopted under existing
authority will need to be amended to conform with the provisions of the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.