The purpose and effect of this new rule is to implement the requirements in Section 1002.385, Florida Statutes.

 

DEPARTMENT OF EDUCATION

State Board of Education

RULE NO.:RULE TITLE:

6A-6.0961Florida Personal Learning Scholarship Account Program

PURPOSE AND EFFECT: The purpose and effect of this new rule is to implement the requirements in Section 1002.385, Florida Statutes.

SUMMARY: The proposed rule creates processes for the Department of Education to distribute funds to eligible nonprofit scholarship-funding organizations for the purpose of providing scholarships to eligible students with specific disabilities. The rule also creates the processes to be used by the Department to deny, suspend or revoke participation in the program.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The rule is limited to prescribing processes and procedures to implement requirements contained in Section 1002.385, Florida Statutes.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 1002.385(18) FS.

LAW IMPLEMENTED: 1002.385 FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: September 29, 2014, 8:30 a.m.

PLACE: Tampa Airport Marriott, 4200 George J. Bean Parkway, Duval Conference Room, Tampa, Florida 33607

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Adam Miller, Executive Director, Office of Independent Education and Parental Choice, 325 W. Gaines Street, Suite 1044, Tallahassee, Florida 32399-0400

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

6A-6.0961 Florida Personal Learning Scholarship Accounts Program.

The Florida Personal Learning Scholarship Accounts Program will be implemented as required by Section 1002.385, F.S., to allow nonprofit scholarship-funding organizations to provide the option for a parent to better meet the individual educational needs of his or her eligible child by establishing an account for the funding of eligible expenditures.

(1) Eligibility of nonprofit scholarship-funding organizations.

(a) An eligible nonprofit scholarship-funding organization that participates in the Florida Tax Credit Scholarship Program under Section 1002.395, F.S., may establish personal learning scholarship accounts for eligible students.

(b) If, at any point during the school year, a nonprofit scholarship-funding organization no longer meets the eligibility requirements for nonprofit scholarship-funding organizations, the Commissioner shall:

1. Issue a notice of noncompliance that gives the nonprofit scholarship-funding organization a reasonable time to meet the requirements; or,

2. Issue a notice of proposed action to suspend the nonprofit scholarship-funding organization or to remove the nonprofit scholarship-funding organization from the list of eligible nonprofit scholarship-funding organizations where the health, safety, or welfare of students is involved or the nonprofit scholarship-funding organization has failed to meet requirements specified in a notice of noncompliance pursuant to this paragraph.

(c) Nonprofit scholarship-funding organizations suspended or removed pursuant to subsection (9) of this rule shall have fifteen (15) days from receipt of the notice of proposed action to file with the Department’s agency clerk a request for a proceeding pursuant to Sections 120.569 and 120.57, F.S. All resulting proceedings shall be conducted in accordance with Chapter 120, F.S.

(2) Nonprofit scholarship-funding organization requirements. Eligible nonprofit scholarship-funding organizations shall:

(a) Receive applications and determine eligibility of students in accordance with the requirements of Section 1002.385(3)(a), F.S.;

(b) By March 1 before the school year in which students will participate, submit in a format to be specified by the Department an electronic list of all scholarship students that have applied to receive scholarship funds. The list shall include the following information:

1. Information for each student, including name, date of birth, grade level, and address, including county of residence;

2. Eligible disability;

3. Matrix funding level for the student;

4. Status of eligibility determination; and,

5. Whether student is current participant in program.

(3) Nothing in this rule shall limit the Department’s authority to request any other information related to the scholarship program.

(4) Eligible students. Applications for a Florida Personal Learning Scholarship Account shall be made by parents directly through an eligible nonprofit scholarship-funding organization. The nonprofit scholarship-funding organization shall verify the eligibility of students pursuant to the criteria established in Section 1002.385, F.S., and award scholarships consistent with the requirements of Section 1002.385, F.S. The process used to identify eligible students and award scholarships is subject to the annual financial and operational audit required by law.

(5) Scholarship payments. The following provisions relate to the distribution of funds from the Department of Education to an eligible nonprofit scholarship-funding organization.

(a) An eligible scholarship funding organization may request a payment from the Department of Education for an eligible student only after it has confirmed that the student has met the eligibility criteria in Section 1002.385(3)(a), F.S. Using the Department’s web-based system, the nonprofit scholarship-funding organization must:

1. Confirm the eligibility of each scholarship student;

2. Attest to the accuracy of each student’s information submitted by the nonprofit scholarship-funding organization, which must include the following:

a. Student name, date of birth, social security number, gender, race, grade level, and address including county of residence;

b. Category under which student is eligible, pursuant to Section 1002.385(2)(d), F.S.;

c. Matrix level of funding; and,

d. Date and time the nonprofit scholarship-funding organization confirmed eligibility.

3. Submit a request for payment to include the amount requested for each individual student as well as the total amount requested.

(b) The Department shall verify, prior to payment, that each eligible student for which the nonprofit scholarship funding organization is requesting payment is not enrolled in public school or receiving a scholarship under another program pursuant to Chapter 1002, Florida Statutes, and has not had participation suspended or revoked pursuant to Section 1002.385(10), F.S. Upon verification, the Department shall distribute funds to the nonprofit scholarship-funding organization. The Department shall distribute funds on a first-come first-served basis, based upon the date and time the scholarship-funding organization confirmed eligibility pursuant to subparagraph (5)(a)1. of this rule.

(c) Requests for payments by a nonprofit scholarship-funding organization must be submitted no later than May 1 for the fiscal year in which the student is eligible to receive a scholarship.

(d) The Department may suspend a student’s participation in the program and withhold a scholarship payment pursuant to Section 1002.385(10), F.S.

(e) Eligible nonprofit scholarship-funding organizations are responsible for the return of all scholarship funds to the Department that were received in error. If the Department identifies scholarship funds that should be returned, it shall send a letter via both regular and certified mail requesting the return of the funds. The letter shall state the reason the funds are being requested, the student or students involved, instructions on returning the funds, and the procedure to be followed if the eligible nonprofit scholarship-funding organization believes that return of the funds is being requested in error or wishes to provide additional information related to the requested funds. The Department’s letter may also require the eligible nonprofit scholarship-funding organization to provide an explanation for how the funds were erroneously obtained.

1. Eligible nonprofit scholarship-funding organizations shall respond to such letter within thirty (30) days by either returning the funds or detailing in writing why its retention of the funds is proper.

2. If the Department receives a letter detailing why the funds were properly retained, it shall determine whether the explanation is sufficient and thereafter alert the eligible nonprofit scholarship-funding organization of any funds still due and a timeframe for the return of those funds. The response shall give the eligible nonprofit scholarship-funding organization at least twenty (20) additional days to repay the funds.

3. Failure to return the funds due to the Department, or failure to provide a sufficient explanation for how the eligible nonprofit scholarship-funding organization claimed funds that were erroneously obtained, within the time period allotted in subparagraphs (5)(e)1. and 2. of this rule, shall result in the initiation of noncompliance procedures pursuant to the Commissioner’s authority described in Section 1002.385(10), F.S., and this rule.

(f) All claims by eligible nonprofit scholarship-funding organizations for missed scholarship payments must be made by May 1 of the fiscal year in which the scholarship payment was originally due.

(6) Quarterly Reports: Four (4) times a year, no later than October 30, January 30, April 30, and June 30 of each year, an eligible nonprofit scholarship-funding organization shall submit in a format to be specified by the Department an electronic list of all participating scholarship students, providers of services, and participating private schools. The list shall include the following information:

(a) Demographic information for each student, including name, date of birth, social security number, grade level, gender, race, parent’s name, and address;

(b) Information on all providers of services, including name, licensure information, and fee amounts received for services;

(c) Information on the student’s school of attendance, if applicable, including tuition, fees, and transportation amounts;

(d) The cumulative amount of scholarship funds received for each student; and,

(e) The amount of scholarship funds remaining in each student’s account.

(7) Complaint process. The following process is established to allow individuals to notify the Department of any violation by parents, providers, private schools, eligible nonprofit scholarship-funding organizations, or school districts of laws or rules related to scholarship program participation.

(a) Persons interested in filing a complaint should contact the Department through the toll-free hotline, established pursuant to Section 1002.395, F.S., or through the Department’s website at www.floridaschoolchoice.org.

(b) An initial complaint shall include, at a minimum, the complainant’s name, phone number, address, and details of the situation.

(c) After receipt of the initial complaint, the Department shall offer to provide a formal complaint form to the complainant.

(d) To register a formal complaint, the complainant must complete the formal complaint form, sign it, and mail or fax it to the Department within thirty (30) days of making the initial complaint.

(e) Upon receipt of a formal complaint, the Department shall review the complaint for legal sufficiency. If the complaint is legally sufficient, the Department shall conduct an inquiry, as described in subsection (8) of this rule, or refer the matter to the appropriate agency for investigation. If the complaint is not legally sufficient, the Department may close the complaint.

(f) The Department shall notify the complainant of the final result of all legally sufficient formal complaints.

(8) Inquiry Process. If an inquiry is made as to the conduct of an individual or entity participating in the program:

(a) A letter of inquiry will be delivered using regular and certified mail that alerts the individual or entity to the inquiry and provides the opportunity to respond. The letter of inquiry shall detail any alleged violations of program rules or law, the response required, any documentation requested, and the deadline for responding to the department. A copy of the letter of inquiry shall be provided to the appropriate nonprofit scholarship-funding organization.

(b) If there is a failure to respond to a letter of inquiry in a timely manner by:

1. A parent, then the Department shall notify the appropriate nonprofit scholarship-funding organization of the nature of the inquiry and the parent’s deemed admission of alleged violation due to a failure to respond to the letter of inquiry. The nonprofit scholarship-funding organization may use that information to reconsider its determination of student eligibility. The Department may take action as prescribed under subsection (9) of this rule.

2. A private school, then the Department shall proceed with the noncompliance procedures related to the Commissioner’s authority established pursuant to Section 1002.385(10), F.S., and this rule.

3. A nonprofit scholarship-funding organization, then the Department shall proceed with the noncompliance procedures related to the Commissioner’s authority established pursuant to Section 1002.385(10), F.S., and this rule.

4. A school district, then the Department shall take any actions allowable under law to compel school district compliance with program requirements and to ameliorate the effect of the violation as appropriate.

(c) The Department shall review the response to the letter of inquiry and:

1. If satisfied that no violation of laws or rules related to scholarship program participation occurred, notify the eligible student, approved provider, nonprofit scholarship-funding organization, private school, or school district and complainant that the inquiry will be closed.

2. If more information is needed, request additional information related to the inquiry from the complainant, eligible student, approved provider, nonprofit scholarship-funding organization, private school, or school district.

3. If a violation of laws or rules related to scholarship program participation has been committed by:

a. A parent, then the Department shall notify the appropriate nonprofit scholarship-funding organization of the findings and shall initiate the process prescribed under subsection (9) of this rule.

b. A private school, then the Department shall proceed with the noncompliance procedures related to the Commissioner’s authority established pursuant to Section 1002.385(10), F.S., and this rule.

c. A nonprofit scholarship-funding organization, then the Department shall proceed with the noncompliance procedures related to the Commissioner’s authority established pursuant to Section 1002.385(10), F.S., and this rule.

d. A school district, then the Department shall take any actions allowable under law to compel school district compliance with program requirements and to ameliorate the effect of the violation as appropriate.

(d) The Department may at any point in the process set forth in this rule refer an inquiry to the Department’s Office of Inspector General or another appropriate agency for investigation.

(e) Notwithstanding any other provisions of this rule, the Commissioner may at any point during the inquiry process exercise the authority given under Section 1002.385(10), F.S., and this rule.

(9) Commissioner’s duties. The Commissioner may deny, suspend, or revoke participation in the scholarship program pursuant to Section 1002.385(10), F.S.

(a) If the Commissioner issues a notice of noncompliance:

1. Eligible students, nonprofit scholarship-funding organizations, and private schools shall be given no fewer than five (5) days from the date of the notice, as determined by the Commissioner, to demonstrate compliance;

2. The notice shall state the reasons for the noncompliance, provide instructions on how to demonstrate compliance, and give a deadline for demonstrating compliance to the Commissioner;

3. The eligible student, nonprofit scholarship-funding organization, or private school’s participation status shall be unaffected by the above notice of noncompliance process; and,

4. A copy of the notice shall be provided to the appropriate nonprofit scholarship-funding organization.

(b) Upon issuance of a notice of noncompliance the Commissioner may suspend payments to the non-profit scholarship funding organization until the non-profit scholarship funding organization has demonstrated compliance.

(c) If the Commissioner issues a notice of proposed action denying, suspending, or revoking an eligible student, nonprofit scholarship-funding organization, or private school’s participation:

1. The notice shall state the reasons for the action and specify the eligible student, approved provider, nonprofit scholarship-funding organization, or private school’s right to appeal;

2. The eligible student, approved provider, nonprofit scholarship-funding organization, or private school’s participation status shall be unaffected until the proposed action becomes final and all relevant appeals have expired; and,

3. A copy of the notice shall be provided to the appropriate nonprofit scholarship-funding organization.

(d) If the Commissioner denies, suspends, or revokes an authorized use of program funds:

1. The Commissioner shall issue a notice of agency action to the eligible student, nonprofit scholarship-funding organization, or private school;

2. The notice shall state the reasons for the action and the rights the eligible student, nonprofit scholarship-funding organization, or private school has to appeal;

3. The eligible student, nonprofit scholarship-funding organization, or private school participation status will be adjusted so that it will be unable to participate in the program; and

4. A copy of the notice shall be provided to the appropriate nonprofit scholarship-funding organization.

Rulemaking Authority 1002.385(18) FS. Law Implemented 1002.385 FS. History–New__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Adam Miller, Executive Director, Office of Independent Education and Parental Choice

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Pam Stewart, Commissioner, Department of Education

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 26, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 9, 2014