Emails between state Rep.

Mike Horner's office and a lobbyist for a group called Step Up For Students show that the group wrote a bill during the 2011 legislative session and simply handed it off to Horner. The bill placed protections in state law for a tax credit scholarship program that the group runs. The legislation included provisions that specifically benefit Step Up For Students. Below are some of the emails along with an explanation of each.

: Amy Graham [mailto:agraham@stepupforstudents.org] Sent: Friday, February 18, 2011 2:25 PM To: Lovejoy, Adam Cc: Jon East; 'denise' Subject: RE: Bill Summary for Rep. Horner

Good afternoon Adam, Denise Lasher forwarded Rep. Horners request for a section by section summary of the Florida Tax Credit Scholarship Program bill. I have attached a Bill Summary and will call you to discuss in more detail. If you have any questions, please let me know. Thank you, Amy

Amy Graham
Senior Policy Analyst, Step Up For Students 337 S. Plant Avenue, Tampa, FL 33606 Office: 850.270.6357 Cell: 850.980.2736 AGraham@stepupforstudents.org http://www.stepupforstudents.org/ Helping public education fulfill the promise of equal opportunity

Explanation: This email included an attached analysis (see below) sent by Step Up For Students. The analysis was sent at Horner's request so he would not "embarrass" himself or the group when presenting the bill in committee..

From: Lovejoy, Adam [mailto:Adam.Lovejoy@myfloridahouse.gov] Sent: Thursday, February 10, 2011 11:05 AM To: denise Subject: RE:

Explanation: This email shows a template Horners office used when asking groups to explain the bills they wrote for him. It was sent to at least four organizations during the 2011 legislative session, emails show. Below, you can read the fourpage analysis Step Up For Students sent Horner.

Hi Denise,

Thanks again for the Michelle Rhee invite. Rep Horner enjoyed the meeting immensely. We dont have a product back from drafting yet, but in preparation for that Rep. Horner has created a format that we are requesting for all of our bills. We really appreciate your help on this. Thank you! From the Rep:

The first hearing for our bill will be here before we know it and I need to spend the next week or so preparing so I dont embarrass myself or you, but rather properly defend this bill with knowledge and easy to understand examples that highlight the need for this legislation. As soon as you can produce it, can you break the bill down by each element and provide anything

and everything I need to fully understand (section by section) what the current law says, what we are changing, why we are changing it (or adding it), and anticipate commonly asked questions about the effect of what we are proposing and the answers to those questions? For the sake of example, lets say we lived in a world where buses were not yet required to stop at railroad crossings and we were proposing a mandate for them to stop at railroad crossings. Please set up my cheat sheet for each individual element to follow this four section format: Section 1 Status of current law:
Clearly explain what the current law says.

E.g., currently state law does not mandate that buses stop at railroad crossings. Section 2 Proposed changes:
What specific changes are we proposing?

E.g., our proposal, if passed, would require all buses to stop before crossing railroad tracks. Section 3 Reason for changes:
Explain in easy to understand detail why we should make this policy change.

E.g., why is it important for safety reasons to change the law to create this mandatory railroad crossing stop? Section 4 Anticipated issues/questions raised by the opposition:
Prepare me to combat questions and scenarios from the opposition.

E.g., We anticipate the following questions/concerns being raised and the correct response to each: Question 1: is this mandate on buses necessary? (Detailed Answer) Question 2: What evidence exists that shows what, if any dangers the current policy produces? (Detailed Answer) Question 3: Why just buses? Why not all cars, vans, and trucks? (Detailed Answer) Question 4: Will this mandatory stop cause problems with the flow of traffic and possibly endanger other motorists? (Detailed Answer) Question 5: What would the penalties be for a bus driver who does not comply? (Detailed Answer) I want to be fully prepared to explain what were doing in each section, why were doing it, and be able to competently respond to questions for each section and likely doomsday scenarios presented by the opposition. Thank you! I very much appreciate your help on this. Thank you for your hard work. Best regards, Mike

Adam Lovejoy

Adam Lovejoy
Legislative Assistant State Representative Mike Horner District 79 407-943-3077 407-943-3078 fax
FTC Bill Sumocx (32.8 KB)

Explanation: Denise Lasher, Step Up For Students top lobbyist, checks to see if there has been any movement on their bill.

From: denise [mailto:lasherinc@gmail.com] Sent: Tuesday, February 15, 2011 9:38 PM To: 'denise'; Lovejoy, Adam Subject: RE: FTC bill HI Adam; Just checking in to see if you have gotten anything back from Drafting yet? Also did you guys send the bill to DOR as mentioned in the below email. just checking in because John K asks everyday for an update Hope your week is going well. Denise

From: denise [mailto:lasherinc@gmail.com] Sent: Friday, February 11, 2011 10:34 AM To: 'Lovejoy, Adam' Subject: RE: FTC bill Hi Adam; I spoke with Chairman Horner yesterday- he may have mentioned to you that we would like him to send our draft bill to DOR I have attached to this email the draft to send to them. I guess contact their legislative affairs person. Just ask them to review the bill and see if there is anything we need to add to the section that deals with their entity. We dont want to run into issues with DOR at the first or subsequent committee hearings if possible. Also I sent you yesterday the one revision we want in the bill language that was submitted to drafting- that is the carryforward tax credit for corporation- change the 10 years to 5 years, I have made that change in the attacahed. Is it best to alert the drafting folks now so they make the change now instead of doing a back and forth? Thanks, Denise

From: Lovejoy, Adam [mailto:Adam.Lovejoy@myfloridahouse.gov] Sent: Thursday, February 10, 2011 11:05 AM To: denise Subject: RE:

Hi Denise,

Thanks again for the Michelle Rhee invite. Rep Horner enjoyed the meeting immensely. We dont have a product back from drafting yet, but in preparation for that Rep. Horner has created a format that we are requesting for all of our bills. We really appreciate your help on this. Thank you! From the Rep:

The first hearing for our bill will be here before we know it and I need to spend the next week or so preparing so I dont embarrass myself or you, but rather properly defend this bill with knowledge and easy to understand examples that highlight the need for this legislation. As soon as you can produce it, can you break the bill down by each element and provide anything and everything I need to fully understand (section by section) what the current law says, what we are changing, why we are changing it (or adding it), and anticipate commonly asked questions about the effect of what we are proposing and the answers to those questions? For the sake of example, lets say we lived in a world where buses were not yet required to stop at railroad crossings and we were proposing a mandate for them to stop at railroad crossings. Please set up my cheat sheet for each individual element to follow this four section format: Section 1 Status of current law:
Clearly explain what the current law says.

E.g., currently state law does not mandate that buses stop at railroad crossings. Section 2 Proposed changes:
What specific changes are we proposing?

E.g., our proposal, if passed, would require all buses to stop before crossing railroad tracks. Section 3 Reason for changes:
Explain in easy to understand detail why we should make this policy change.

E.g., why is it important for safety reasons to change the law to create this mandatory railroad crossing stop? Section 4 Anticipated issues/questions raised by the opposition:
Prepare me to combat questions and scenarios from the opposition.

E.g., We anticipate the following questions/concerns being raised and the correct response to each: Question 1: is this mandate on buses necessary? (Detailed Answer) Question 2: What evidence exists that shows what, if any dangers the current policy produces? (Detailed Answer) Question 3: Why just buses? Why not all cars, vans, and trucks? (Detailed Answer) Question 4: Will this mandatory stop cause problems with the flow of traffic and possibly endanger other motorists? (Detailed Answer) Question 5: What would the penalties be for a bus driver who does not comply? (Detailed Answer)

I want to be fully prepared to explain what were doing in each section, why were doing it, and be able to competently respond to questions for each section and likely doomsday scenarios presented by the opposition. Thank you! I very much appreciate your help on this. Thank you for your hard work. Best regards, Mike

Adam Lovejoy
Legislative Assistant State Representative Mike Horner District 79 407-943-3077 407-943-3078 fax
From: denise [mailto:lasherinc@gmail.com] Sent: Wednesday, January 26, 2011 12:19 PM To: Lovejoy, Adam Subject: Attached is the draft of the tax credit bill that we have at this time. If you would like, you can send to bill drafting now so we can get in the queue and then once we have the other item resolved we can make the revision prior to filing the bill. Does that work for you and Chair Horner? Thanks, Denise Lasher

Explanation: Attached to this email was the first version of the legislation written by Step Up For Students. The bill was signed into law June 2.

Explanation: Lasher asks Horners office to make sure the Department of Revenue did not have any issues with their bill. The specific provision she references would have given Step Up For Students confidential corporate tax information.

From: denise [mailto:lasherinc@gmail.com] Sent: Friday, February 11, 2011 10:34 AM To: Lovejoy, Adam Subject: RE: FTC bill Hi Adam; I spoke with Chairman Horner yesterday- he may have mentioned to you that we would like him to send our draft bill to DOR I have attached to this email the draft to send to them. I guess contact their legislative affairs person. Just ask them to review the bill and see if there is anything we need to add to the section that deals with their entity. We dont want to run into issues with DOR at the first or subsequent committee hearings if possible. Also I sent you yesterday the one revision we want in the bill language that was submitted to drafting- that is the carryforward tax credit for corporation- change the 10 years to 5 years, I have made that change in the attacahed. Is it best to alert the drafting folks now so they make the change now instead of doing a back and forth? Thanks, Denise

From: Lovejoy, Adam [mailto:Adam.Lovejoy@myfloridahouse.gov] Sent: Thursday, February 10, 2011 11:05 AM To: denise Subject: RE:

Hi Denise, Thanks again for the Michelle Rhee invite. Rep Horner enjoyed the meeting immensely. We dont have a product back from drafting yet, but in preparation for that Rep. Horner has created a format that we are requesting for all of our bills. We really appreciate your help on this. Thank you! From the Rep:

The first hearing for our bill will be here before we know it and I need to spend the next week or so preparing so I dont embarrass myself or you, but rather properly defend this bill with knowledge and easy to understand examples that highlight the need for this legislation. As soon as you can produce it, can you break the bill down by each element and provide anything and everything I need to fully understand (section by section) what the current law says, what we

are changing, why we are changing it (or adding it), and anticipate commonly asked questions about the effect of what we are proposing and the answers to those questions? For the sake of example, lets say we lived in a world where buses were not yet required to stop at railroad crossings and we were proposing a mandate for them to stop at railroad crossings. Please set up my cheat sheet for each individual element to follow this four section format: Section 1 Status of current law:
Clearly explain what the current law says.

E.g., currently state law does not mandate that buses stop at railroad crossings. Section 2 Proposed changes:
What specific changes are we proposing?

E.g., our proposal, if passed, would require all buses to stop before crossing railroad tracks. Section 3 Reason for changes:
Explain in easy to understand detail why we should make this policy change.

E.g., why is it important for safety reasons to change the law to create this mandatory railroad crossing stop? Section 4 Anticipated issues/questions raised by the opposition:
Prepare me to combat questions and scenarios from the opposition.

E.g., We anticipate the following questions/concerns being raised and the correct response to each: Question 1: is this mandate on buses necessary? (Detailed Answer) Question 2: What evidence exists that shows what, if any dangers the current policy produces? (Detailed Answer) Question 3: Why just buses? Why not all cars, vans, and trucks? (Detailed Answer) Question 4: Will this mandatory stop cause problems with the flow of traffic and possibly endanger other motorists? (Detailed Answer) Question 5: What would the penalties be for a bus driver who does not comply? (Detailed Answer) I want to be fully prepared to explain what were doing in each section, why were doing it, and be able to competently respond to questions for each section and likely doomsday scenarios presented by the opposition. Thank you! I very much appreciate your help on this. Thank you for your hard work. Best regards, Mike

Adam Lovejoy
Legislative Assistant

State Representative Mike Horner District 79 407-943-3077 407-943-3078 fax

From: denise [mailto:lasherinc@gmail.com] Sent: Wednesday, January 26, 2011 12:19 PM To: Lovejoy, Adam Subject: Attached is the draft of the tax credit bill that we have at this time. If you would like, you can send to bill drafting now so we can get in the queue and then once we have the other item resolved we can make the revision prior to filing the bill. Does that work for you and Chair Horner? Thanks, Denise Lasher

FTC Bill Drafocx (45.7 KB)

Explanation: Not only did Step Up For Students write the bill, but they also penned changes they wanted inserted into the bill after it was sent to Horners office. This e-mail shows one such change that ultimately made it into the final version.

From: denise [mailto:lasherinc@gmail.com] Sent: Thursday, February 10, 2011 12:26 PM To: Lovejoy, Adam Subject: RE: Here is the only change ( changing the 10 year to only 5 yr carryforward) we need to the draft we sent you- is it best to get it to drafting now or after you get their first draft back?? Are you in the office in about 30 mins? I have something else to ask but need to do so in person so I can explain it better vs a long, long email. Densie

c) If a tax credit approved under paragraph (b) is not fully used within the specified state fiscal year for credits under s. 211.0251, s. 212.1831, or s. 561.1211 or against taxes due for the specified taxable year for credits under s. 220.1875 or s. 624.51055 because of insufficient tax liability on the part of the taxpayer, the unused amount may be carried forward for a period not to exceed 5 3 years. However, any taxpayer that seeks to carry forward an unused amount of tax credit must submit an application to the department for approval of the carryforward tax credit in the year that the taxpayer intends to use the carryforward. The department must obtain the divisions approval prior to approving the carryforward of a tax credit under s. 561.1211.

From: Lovejoy, Adam [mailto:Adam.Lovejoy@myfloridahouse.gov] Sent: Thursday, February 10, 2011 11:05 AM To: denise Subject: RE:

Hi Denise, Thanks again for the Michelle Rhee invite. Rep Horner enjoyed the meeting immensely. We dont have a product back from drafting yet, but in preparation for that Rep. Horner has created a format that we are requesting for all of our bills. We really appreciate your help on this. Thank you! From the Rep:

The first hearing for our bill will be here before we know it and I need to spend the next week or so preparing so I dont embarrass myself or you, but rather properly defend this bill with knowledge and easy to understand examples that highlight the need for this legislation. As soon as you can produce it, can you break the bill down by each element and provide anything and everything I need to fully understand (section by section) what the current law says, what we

are changing, why we are changing it (or adding it), and anticipate commonly asked questions about the effect of what we are proposing and the answers to those questions? For the sake of example, lets say we lived in a world where buses were not yet required to stop at railroad crossings and we were proposing a mandate for them to stop at railroad crossings. Please set up my cheat sheet for each individual element to follow this four section format: Section 1 Status of current law:
Clearly explain what the current law says.

E.g., currently state law does not mandate that buses stop at railroad crossings. Section 2 Proposed changes:
What specific changes are we proposing?

E.g., our proposal, if passed, would require all buses to stop before crossing railroad tracks. Section 3 Reason for changes:
Explain in easy to understand detail why we should make this policy change.

E.g., why is it important for safety reasons to change the law to create this mandatory railroad crossing stop? Section 4 Anticipated issues/questions raised by the opposition:
Prepare me to combat questions and scenarios from the opposition.

E.g., We anticipate the following questions/concerns being raised and the correct response to each: Question 1: is this mandate on buses necessary? (Detailed Answer) Question 2: What evidence exists that shows what, if any dangers the current policy produces? (Detailed Answer) Question 3: Why just buses? Why not all cars, vans, and trucks? (Detailed Answer) Question 4: Will this mandatory stop cause problems with the flow of traffic and possibly endanger other motorists? (Detailed Answer) Question 5: What would the penalties be for a bus driver who does not comply? (Detailed Answer) I want to be fully prepared to explain what were doing in each section, why were doing it, and be able to competently respond to questions for each section and likely doomsday scenarios presented by the opposition. Thank you! I very much appreciate your help on this. Thank you for your hard work. Best regards, Mike

Adam Lovejoy
Legislative Assistant

State Representative Mike Horner District 79 407-943-3077 407-943-3078 fax

From: denise [mailto:lasherinc@gmail.com] Sent: Wednesday, January 26, 2011 12:19 PM To: Lovejoy, Adam Subject: Attached is the draft of the tax credit bill that we have at this time. If you would like, you can send to bill drafting now so we can get in the queue and then once we have the other item resolved we can make the revision prior to filing the bill. Does that work for you and Chair Horner? Thanks, Denise Lasher

Explanation: A quick response from Lasher when Horners office asks for a breakdown of the bill Step Up For Students penned.

From: Denise [mailto:lasherinc@gmail.com] Sent: Thursday, February 10, 2011 11:21 AM To: Lovejoy, Adam Subject: Re:

On it asap! From: "Lovejoy, Adam" <Adam.Lovejoy@myfloridahouse.gov> Date: Thu, 10 Feb 2011 11:04:37 -0500 To: denise<lasherinc@gmail.com> Subject: RE:
Hi Denise, Thanks again for the Michelle Rhee invite. Rep Horner enjoyed the meeting immensely. We dont have a product back from drafting yet, but in preparation for that Rep. Horner has created a format that we are requesting for all of our bills. We really appreciate your help on this. Thank you! From the Rep:

The first hearing for our bill will be here before we know it and I need to spend the next week or so preparing so I dont embarrass myself or you, but rather properly defend this bill with knowledge and easy to understand examples that highlight the need for this legislation. As soon as you can produce it, can you break the bill down by each element and provide anything and everything I need to fully understand (section by section) what the current law says, what we are changing, why we are changing it (or adding it), and anticipate commonly asked questions about the effect of what we are proposing and the answers to those questions? For the sake of example, lets say we lived in a world where buses were not yet required to stop at railroad crossings and we were proposing a mandate for them to stop at railroad crossings. Please set up my cheat sheet for each individual element to follow this four section format: Section 1 Status of current law:
Clearly explain what the current law says.

E.g., currently state law does not mandate that buses stop at railroad crossings. Section 2 Proposed changes:

 What specific changes are we proposing?

E.g., our proposal, if passed, would require all buses to stop before crossing railroad tracks. Section 3 Reason for changes:
Explain in easy to understand detail why we should make this policy change.

E.g., why is it important for safety reasons to change the law to create this mandatory railroad crossing stop? Section 4 Anticipated issues/questions raised by the opposition:
Prepare me to combat questions and scenarios from the opposition.

E.g., We anticipate the following questions/concerns being raised and the correct response to each: Question 1: is this mandate on buses necessary? (Detailed Answer) Question 2: What evidence exists that shows what, if any dangers the current policy produces? (Detailed Answer) Question 3: Why just buses? Why not all cars, vans, and trucks? (Detailed Answer) Question 4: Will this mandatory stop cause problems with the flow of traffic and possibly endanger other motorists? (Detailed Answer) Question 5: What would the penalties be for a bus driver who does not comply? (Detailed Answer) I want to be fully prepared to explain what were doing in each section, why were doing it, and be able to competently respond to questions for each section and likely doomsday scenarios presented by the opposition. Thank you! I very much appreciate your help on this. Thank you for your hard work. Best regards, Mike

Adam Lovejoy
Legislative Assistant State Representative Mike Horner District 79 407-943-3077 407-943-3078 fax
From: denise [mailto:lasherinc@gmail.com] Sent: Wednesday, January 26, 2011 12:19 PM To: Lovejoy, Adam Subject: Attached is the draft of the tax credit bill that we have at this time. If you would like, you can send to bill drafting now so we can get in the queue and then once we have the other item resolved we can make the revision prior to filing the bill. Does that work for you and Chair Horner? Thanks,

Thanks, Denise Lasher

Explanation: Horners office used the same template sent to Step Up For Students for a bill written by AT&T. The bill had to do with a rewrite of telecommunications law sponsored by Horner.

From: YORK, JOE S (ATTSI) [mailto:jy0365@att.com] Sent: Tuesday, February 08, 2011 10:48 AM To: Lovejoy, Adam Subject: Re: Bill Breakdown You did send this to me, we will have a breakdown for each to you by Thursday. Also we are working our attorney's response to each and then a plain spoken non legal response. I also have some other details that will help you prepare. Joe York AT&T 150 S. Monroe St., Ste. 400 Tallahassee, FL 32301. 850-577-5500 Cell 850-591-6001 Sent to you by AT&T... America's Fastest Mobile Broadband Network. Rethink Possible

From: Lovejoy, Adam <Adam.Lovejoy@myfloridahouse.gov> To: YORK, JOE S (ATTSI) Sent: Tue Feb 08 09:36:14 2011 Subject: Bill Breakdown

Hey Joe, Did I send this to you already? I cant remember. Its the Reps requested bill breakdown to help him prepare The first hearing for our bill will be here before we know it and I need to spend the next week or so preparing so I dont embarrass myself or you, but rather properly defend this bill with knowledge and easy to understand examples that highlight the need for this legislation. As soon as you can produce it, can you break the bill down by each element and provide anything and everything I need to fully understand (section by section) what the current law says, what we are changing, why we are changing it (or adding it), and anticipate commonly asked questions about the effect of what we are proposing and the answers to those questions? For the sake of example, lets say we lived in a world where buses were not yet required to stop at railroad crossings and we were proposing a mandate for them to stop at railroad crossings. Please set up my cheat sheet for each individual element to follow this four section format: Section 1 Status of current law: Clearly explain what the current law says.

E.g., currently state law does not mandate that buses stop at railroad crossings.

Section 2 Proposed changes: What specific changes are we proposing?

E.g., our proposal, if passed, would require all buses to stop before crossing railroad tracks.
Section 3 Reason for changes: Explain in easy to understand detail why we should make this policy change.

E.g., why is it important for safety reasons to change the law to create this mandatory railroad crossing stop?
Section 4 Anticipated issues/questions raised by the opposition: Prepare me to combat questions and scenarios from the opposition.

E.g., We anticipate the following questions/concerns being raised and the correct response to each: Question 1: is this mandate on buses necessary? (Detailed Answer) Question 2: What evidence exists that shows what, if any dangers the current policy produces? (Detailed Answer) Question 3: Why just buses? Why not all cars, vans, and trucks? (Detailed Answer) Question 4: Will this mandatory stop cause problems with the flow of traffic and possibly endanger other motorists? (Detailed Answer) Question 5: What would the penalties be for a bus driver who does not comply? (Detailed Answer)
I want to be fully prepared to explain what were doing in each section, why were doing it, and be able to competently respond to questions for each section and likely doomsday scenarios presented by the opposition. Thank you! I very much appreciate your help on this. Thank you for your hard work. Best regards, Mike

Adam Lovejoy
Legislative Assistant State Representative Mike Horner District 79 407-943-3077 407-943-3078 fax

This is a copy of the bill Step Up For Students submitted to Horner's office in January. Underlined/Crossed out areas are areas of the law that the bill proposed changing. One provision giving the group access to confidential tax information was eventually removed by lawmakers.

DRAFT Florida Tax Credit Scholarship Program Legislation January 20, 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 1. Paragraph (cc) is added to subsection (8) of Be It Enacted by the Legislature of the State of Florida: A bill to be entitled An act relating to the Florida Tax Credit Scholarship Program; providing an effective date.

section 213.053, Florida Statutes, to read: 213.053 (8) Confidentiality and information sharing.

Notwithstanding any other provision of this section,

the department may provide: (cc) To an eligible non-profit scholarship-funding

organization that provides scholarships under s. 1002.395 to 10,000 or more eligible students, names and addresses of the 100 taxpayers with the greatest tax liabilities during the most recent calendar year for which information is available for each tax identified in subparagraphs 1., 2. and 4., and for the tax identified in subparagraph 3., names and addresses of the 100 taxpayers with the greatest tax liability for the most recent taxable years for which information is available. An eligible

organization may request the information for any of the taxes identified in subparagraphs 1. through 4., but may not make more than one such request for each tax in any twelve month period. The department shall provide such information within 45 days following a request by an eligible organization. The

information may only be used by the organization for purposes of notifying the taxpayer of the opportunity to make an eligible contribution to the Florida Tax Credit Scholarship Program under Page 1 of 4 FTC Bill Draft 2_10_11 CODING: Words stricken are deletions; words underlined are additions.

DRAFT Florida Tax Credit Scholarship Program Legislation January 20, 2011 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Section 2. to read: 220.1875 Credit for contributions to eligible nonprofit Subsection (1) of section 220.1875, is amended Disclosure of information under this subsection shall be pursuant to a written agreement between the executive director and the agency. Such agencies, governmental or nongovernmental, shall be bound by the same requirements of confidentiality as the Department of Revenue. Breach of confidentiality is a misdemeanor of the first degree, punishable as provided by s. 775.082 or s. 775.083. s. 1002.395. This paragraph applies only to information relating to taxes under: 1. Sections 211.02 and 211.025. 2. Chapter 212 from a direct pay permit holder as a result of the direct pay permit held pursuant to s. 212.183. 3. Chapter 220, unless disclosure of the names and addresses would violate the terms of any information-sharing agreement between the Department and an agency of the federal government. 4. Section 624.509(1).

scholarship-funding organizations. (1) There is allowed a credit of 100 percent of an

eligible contribution made to an eligible nonprofit scholarshipfunding organization under s. 1002.395 against any tax due for a taxable year under this chapter. However, such a credit may not exceed 75 percent of the tax due under this chapter for the Page 2 of 4 FTC Bill Draft 2_10_11 CODING: Words stricken are deletions; words underlined are additions.

DRAFT Florida Tax Credit Scholarship Program Legislation January 20, 2011 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 Section 3. Paragraphs (c) and (e) of subsection (5) of taxable year, after the application of any other allowable credits by the taxpayer. The credit granted by this section shall be reduced by the difference between the amount of federal corporate income tax taking into account the credit granted by this section and the amount of federal corporate income tax without application of the credit granted by this section.

section 1002.395, Florida Statutes, are amended to read: 1002.395 (5) (c) Florida Tax Credit Scholarship Program.

SCHOLARSHIP FUNDING TAX CREDITS; LIMITATIONS. If a tax credit approved under paragraph (b) is not

fully used within the specified state fiscal year for credits under s. 211.0251, s. 212.1831, or s. 561.1211 or against taxes due for the specified taxable year for credits under s. 220.1875 or s. 624.51055 because of insufficient tax liability on the part of the taxpayer, the unused amount may be carried forward for a period not to exceed 5 3 years. However, any taxpayer that seeks to carry forward an unused amount of tax credit must submit an application to the department for approval of the carryforward tax credit in the year that the taxpayer intends to use the carryforward. The department must obtain the divisions approval prior to approving the carryforward of a tax credit under s. 561.1211. (e) Within any state fiscal year, a taxpayer may rescind

all or part of a tax credit approved under paragraph (b). The amount rescinded shall become available for that state fiscal year to another eligible taxpayer as approved by the department Page 3 of 4 FTC Bill Draft 2_10_11 CODING: Words stricken are deletions; words underlined are additions.

DRAFT Florida Tax Credit Scholarship Program Legislation January 20, 2011 85 86 87 88 89 90 91 92 93 94 95 96 Section 4. This act shall take effect July 1, 2011. if the taxpayer receives notice from the department that the rescindment has been accepted by the department and the taxpayer has not previously rescinded any or all of its tax credits approved under paragraph (b) more than once in the previous 3 tax years. The department must obtain the divisions approval prior to accepting the rescindment of a tax credit under s. 561.1211. Any amount rescinded under this paragraph shall become available to an eligible taxpayer on a first-come, first-served basis based on tax credit applications received after the date the rescindment is accepted by the department.

Page 4 of 4 FTC Bill Draft 2_10_11 CODING: Words stricken are deletions; words underlined are additions.

This is a copy of the analysis that Step Up For Students got together to explain the bill to Horner. The breakdown was at Horner's request so "I don't embarrass myself or you."

Evaluation of Florida Tax Credit Scholarship bill

February 18, 2011 BILL CONTEXT:
The 2010 Legislature put the Florida Tax Credit Scholarship for low-income students on a path for continued growth and success. That law allows for a phased increase in the scholarship amount until it eventually reaches 80 percent of the average per-student Florida Education Finance Program amount. It also provides for continued growth in enrollment, allowing the tax credit cap to increase 25 percent in any year after contributions to stateapproved Scholarship Funding Organizations have reached 90 percent of the cap. The cap for 2010-11 was set at $140 million and was reached in December, resulting in a new cap for 2011-12 of $175 million. The 2010-11 cap allowed for an increase in enrollment of nearly 5,500 students, surpassing 33,000 statewide, with a waiting list of more than 12,000. The $175 million cap for 2011-12, if reached through contributions, should allow for an additional 6,000 students. In the 2011 Legislature, Gov. Scott and some legislators are considering a reduction in the corporate income tax. The corporate income tax is the largest of the five tax sources for which credits are now available, representing roughly 61 percent of the potential revenue pool. A reduction in that pool could seriously impact the ability of SFOs to raise contributions in order to keep pace with student demand for the scholarship.

BILL INTENT:
This bill is aimed at insulating the Tax Credit Scholarship program from a possible reduction in the corporate income tax rate and at providing individual corporate income taxpayers an opportunity to participate at a higher level. It achieves this objective not by changing the cap or the scholarship amount or by adding any new tax sources. Rather, the bill simply gives SFOs more tools and companies more flexibility to participate in order to facilitate meeting the goals established by the 2010 legislation. All four proposed changes are technical in nature and will have no direct fiscal impact.

SECTION 1: Providing taxpayer lists

Status of Current Law: Most taxpayer records within the Department of Revenue (DOR) are confidential as a matter of law, but numerous exemptions are provided under s. 213.053, F.S., for purposes the Legislature has judged as appropriate. For example, the DOR may provide: Names, addresses, taxpayer identification numbers, and outstanding tax liabilities to the Department of the Lottery and the Office of Financial Regulation of the Financial Services Commission in the conduct of their official duties. Tax information to principals, and their designees, of the Revenue Estimating Conference for the purpose of developing official revenue estimates. Names and addresses of persons paying taxes pursuant to part IV of chapter 206 to the Department of Environmental Protection in the conduct of its official duties. Taxpayer names and identification numbers for the purposes of information-sharing agreements with financial institutions pursuant to s. 213.0532. Proposed Changes: The bill adds a requirement for DOR to provide, one time a year, to eligible nonprofit scholarship-funding organizations (SFOs) that provide Tax Credit Scholarships to 10,000 or more eligible students the names and addresses of the 100 taxpayers with the greatest tax liabilities during the most recent calendar year for each of the following taxes: Corporate income tax Severance taxes on oil and gas production Self-accrued sales tax liabilities of direct pay permit holders Insurance premium tax In the case of the corporate income tax, the bill provides an exception for any disclosure that violates the terms of any information-sharing agreement between the DOR and an agency of the federal government.

 An eligible SFO may make no more than one request for each tax in any 12-month period. The DOR must provide the information within 45 days following the request. The SFO may only use the information for purposes of notifying the taxpayer of the opportunity to make an eligible contribution to the Florida Tax Credit Scholarship Program. Reason for Changes: SFOs are selected by the Department of Education and empowered under state law to administer the Tax Credit Scholarship program. One of their duties is to seek contributions from companies under the tax-credit law, but they currently have no way to determine whether companies pay a particular tax. This provision would provide qualified SFOs with a list of names and addresses only of the top 100 taxpayers in each category. It would not provide any tax amounts, and it could be used only as a tool to assist SFOs in their fundraising efforts. Anticipated Issues/Questions: Will this violate corporate confidentiality? No, the language is narrowly drafted so that an SFO would receive only a list of names and addresses, with no financial or tax liability numbers. The SFO would be prohibited from using the information for any other purpose than that of seeking contributions to the scholarship program. Doesnt this put the camels nose in the confidentiality tent? No, this provision would be available only to SFOs with at least 10,000 participating students. Currently, there is only one SFO, Step Up For Students, that would be eligible to ask for the lists. Over the past eight years, Step Up has received eight straight audits with neither an exception nor a comment. Does this requirement violate federal tax laws? The language provides an exception to address situations where disclosure of the names and addresses would violate the terms of an information-sharing agreement between the DOR and a federal agency.

SECTION 2: Increasing the potential size of an individual contribution

Status of Current Law: Currently, a corporation that contributes to the Tax Credit Scholarship program can receive a full tax credit for up to 75 percent of its corporate income tax liability for the taxable year in which it makes a contribution to an eligible SFO. Proposed Changes: The bill would increase the allowed credit for corporations from 75 to 100 percent of their corporate income tax liability. Reason for Changes: This change would allow an individual company with corporate income tax liability to contribute more money to the scholarship program during the taxable year. It is intended to give individual companies the opportunity to contribute more and to help offset the impact of any reduction in the corporate tax rate. The total amount of tax credits statewide remains unchanged under this bill. Anticipated Issues/Questions: Will there be a fiscal impact? No, there will be no negative fiscal impact because the scholarship program provides a cap on the total amount of tax credits that may be granted each state fiscal year. For the 2011-2012 state fiscal year, the total amount of tax credits will be capped at $175 million. This provision merely allows individual corporate income taxpayers to contribute more toward that cap.

SECTION 3: Increasing the carry forward

Status of Current Law: Currently, if a tax credit is not fully used within the specified state fiscal year because of insufficient tax liability on the part of the taxpayer, the unused amount may be carried forward for a period not to exceed three years.

Proposed Changes: The bill would increase the length of time that the unused amount of a tax credit may be carried forward from three to five years. Reason for Changes: The current three-year carry-forward causes companies to be cautious in contributing to the scholarship program, in order to avoid applying for a credit that is larger than their tax liability. This change will encourage companies to maximize their ability to participate in the scholarship program while managing their risk in an unpredictable economic environment. Anticipated Issues/Questions: Doesnt this grant special favors? No, just the opposite. This aligns the Corporate Tax Credit Scholarship with many of Florida tax credits that currently provide a carry-forward of five years. Five-year carryforward provisions are allowed in the following corporate income tax credit programs: Rural Job Tax Credit, Urban High-Crime Area Job Tax Credit, Enterprise Zone Property Tax Credit, Entertainment Industry Tax Credit, New Market Tax Credit, Community Contribution Tax Credit, Contaminated Site Rehabilitation Tax Credit, and Hazardous Waste Facility Tax Credit. Other five-year carry-forward provisions include the Entertainment Industry Financial Incentive Program (sales and use tax) and Community Contribution Tax Credit (insurance premium tax).

SECTION 4: Remove limits on rescindments

Status of Current Law: Currently, a taxpayer can rescind all or part of a Corporate Tax Credit within any state fiscal year. The amount of the tax credit that is rescinded must become available for that state fiscal year to another eligible taxpayer if the taxpayer receives notice from the DOR that the rescindment has been accepted and the taxpayer has not previously rescinded any or all of its tax credits more than once in the previous three years. Proposed Changes: The bill removes the limitation on the number of times a company may rescind its tax reservation, so that when a rescindment is made and accepted by the DOR, the amount of the rescindment will become available for that state fiscal year to another eligible taxpayer. Reason for Changes: The limits on rescindments were originally imposed in an attempt to protect SFOs from corporations with potentially lax fiscal practices that resulted in uncertainty in contributions. That has not occurred. So this change allows another company to reclaim dollars that are rescinded by a company with more than one previous rescindment in the last three years. That way, SFOs can seek other contributions to fill that void, ensuring that funding is available for student enrollment growth. Anticipated Issues/Questions: Wont this encourage companies to make tax credit reservations without regard for whether they qualify for them? That has not been the experience the past eight years. Given the pressing demands of student enrollment growth, the scholarship program needs to assure that it has access to all the potential taxcredited contributions available under the annual cap. Whats wrong with limiting the rescindments? The problem is that when a company cannot rescind its tax credit reservation, no other company can opt to use that same tax credit. That means another company loses out on participation, the SFO loses the money, and students lose potential scholarships.