Amendment
Bill No. CS/HB 1005
Amendment No. 384009
CHAMBER ACTION
Senate House
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1Representative Nelson offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause and insert:
5
6     Section 1.  Paragraph (e) of subsection (7) and subsection
7(8) of section 11.45, Florida Statutes, are amended to read:
8     11.45  Definitions; duties; authorities; reports; rules.--
9     (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
10     (e)  The Auditor General shall notify the Governor or the
11Commissioner of Education, as appropriate, and the Legislative
12Auditing Committee of any audit report reviewed by the Auditor
13General pursuant to paragraph (b) which contains a statement
14that a local governmental entity, charter school, charter
15technical career center, or district school board has met one or
16more of the conditions specified in s. 218.503. If the Auditor
17General requests a clarification regarding information included
18in an audit report to determine whether a local governmental
19entity, charter school, charter technical career center, or
20district school board has met one or more of the conditions
21specified in s. 218.503, the requested clarification must be
22provided within 45 days after the date of the request. If the
23local governmental entity, charter school, charter technical
24career center, or district school board does not comply with the
25Auditor General's request, the Auditor General shall notify the
26Legislative Auditing Committee. If, after obtaining the
27requested clarification, the Auditor General determines that the
28local governmental entity, charter school, charter technical
29career center, or district school board has met one or more of
30the conditions specified in s. 218.503, he or she shall notify
31the Governor or the Commissioner of Education, as appropriate,
32and the Legislative Auditing Committee.
33     (8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
34consultation with the Board of Accountancy, shall adopt rules
35for the form and conduct of all financial audits performed by
36independent certified public accountants pursuant to ss.
37215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
38audits of local governmental entities, charter schools, charter
39technical career centers, and district school boards must
40include, but are not limited to, requirements for the reporting
41of information necessary to carry out the purposes of the Local
42Governmental Entity, Charter School, Charter Technical Career
43Center, and District School Board Financial Emergencies Act as
44stated in s. 218.501.
45     Section 2.  Subsection (5) of section 218.39, Florida
46Statutes, is amended to read:
47     218.39  Annual financial audit reports.--
48     (5)  At the conclusion of the audit, the auditor shall
49discuss with the chair of each local governmental entity or the
50chair's designee, or with the elected official of each county
51agency or with the elected official's designee, or with the
52chair of the district school board or the chair's designee, or
53with the chair of the board of the charter school or the chair's
54designee, or with the chair of the charter technical career
55center or the chair's designee, as appropriate, all of the
56auditor's comments that will be included in the audit report. If
57the officer is not available to discuss the auditor's comments,
58their discussion is presumed when the comments are delivered in
59writing to his or her office. The auditor shall notify each
60member of the governing body of a local governmental entity,
61district school board, or charter school, or charter technical
62career center for which deteriorating financial conditions exist
63that may cause a condition described in s. 218.503(1) to occur
64if actions are not taken to address such conditions.
65     Section 3.  Section 218.50, Florida Statutes, is amended to
66read:
67     218.50  Short title.--Sections 218.50-218.504 may be cited
68as the "Local Governmental Entity, Charter School, Charter
69Technical Career Center, and District School Board Financial
70Emergencies Act."
71     Section 4.  Section 218.501, Florida Statutes, is amended
72to read:
73     218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
74     (1)  To promote the fiscal responsibility of local
75governmental entities, charter schools, charter technical career
76centers, and district school boards.
77     (2)  To assist local governmental entities, charter
78schools, charter technical career centers, and district school
79boards in providing essential services without interruption and
80in meeting their financial obligations.
81     (3)  To assist local governmental entities, charter
82schools, charter technical career centers, and district school
83boards through the improvement of local financial management
84procedures.
85     Section 5.  Subsections (1), (2), (3), and (4) of section
86218.503, Florida Statutes, are amended to read:
87     218.503  Determination of financial emergency.--
88     (1)  Local governmental entities, charter schools, charter
89technical career centers, and district school boards shall be
90subject to review and oversight by the Governor, the charter
91school sponsor, the charter technical career center sponsor, or
92the Commissioner of Education, as appropriate, when any one of
93the following conditions occurs:
94     (a)  Failure within the same fiscal year in which due to
95pay short-term loans or failure to make bond debt service or
96other long-term debt payments when due, as a result of a lack of
97funds.
98     (b)  Failure to pay uncontested claims from creditors
99within 90 days after the claim is presented, as a result of a
100lack of funds.
101     (c)  Failure to transfer at the appropriate time, due to
102lack of funds:
103     1.  Taxes withheld on the income of employees; or
104     2.  Employer and employee contributions for:
105     a.  Federal social security; or
106     b.  Any pension, retirement, or benefit plan of an
107employee.
108     (d)  Failure for one pay period to pay, due to lack of
109funds:
110     1.  Wages and salaries owed to employees; or
111     2.  Retirement benefits owed to former employees.
112     (e)  An unreserved or total fund balance or retained
113earnings deficit, or unrestricted or total net assets deficit,
114as reported on the balance sheet or statement of net assets on
115the general purpose or fund financial statements, for which
116sufficient resources of the local governmental entity, charter
117school, charter technical career center, or district school
118board, as reported on the balance sheet or statement of net
119assets on the general purpose or fund financial statements, are
120not available to cover the deficit. Resources available to cover
121reported deficits include net assets that are not otherwise
122restricted by federal, state, or local laws, bond covenants,
123contractual agreements, or other legal constraints. Fixed or
124capital assets, the disposal of which would impair the ability
125of a local governmental entity, charter school, charter
126technical career center, or district school board to carry out
127its functions, are not considered resources available to cover
128reported deficits.
129     (2)  A local governmental entity shall notify the Governor
130and the Legislative Auditing Committee, a charter school shall
131notify the charter school sponsor, the Commissioner of
132Education, and the Legislative Auditing Committee, a charter
133technical career center shall notify the charter technical
134career center sponsor, the Commissioner of Education, and the
135Legislative Auditing Committee, and a district school board
136shall notify the Commissioner of Education and the Legislative
137Auditing Committee, when one or more of the conditions specified
138in subsection (1) have occurred or will occur if action is not
139taken to assist the local governmental entity, charter school,
140charter technical career center, or district school board. In
141addition, any state agency must, within 30 days after a
142determination that one or more of the conditions specified in
143subsection (1) have occurred or will occur if action is not
144taken to assist the local governmental entity, charter school,
145charter technical career center, or district school board,
146notify the Governor, charter school sponsor, charter technical
147career center sponsor, or the Commissioner of Education, as
148appropriate, and the Legislative Auditing Committee.
149     (3)  Upon notification that one or more of the conditions
150in subsection (1) have occurred or will occur if action is not
151taken to assist the local governmental entity or district school
152board exist, the Governor or his or her designee shall contact
153the local governmental entity or the Commissioner of Education
154or his or her designee shall contact the district school board
155to determine what actions have been taken by the local
156governmental entity or the district school board to resolve or
157prevent the condition. The Governor or the Commissioner of
158Education, as appropriate, shall determine whether the local
159governmental entity or the district school board needs state
160assistance to resolve or prevent the condition. If state
161assistance is needed, the local governmental entity or district
162school board is considered to be in a state of financial
163emergency. The Governor or the Commissioner of Education, as
164appropriate, has the authority to implement measures as set
165forth in ss. 218.50-218.504 to assist the local governmental
166entity or district school board in resolving the financial
167emergency. Such measures may include, but are not limited to:
168     (a)  Requiring approval of the local governmental entity's
169budget by the Governor or approval of the district school
170board's budget by the Commissioner of Education.
171     (b)  Authorizing a state loan to a local governmental
172entity and providing for repayment of same.
173     (c)  Prohibiting a local governmental entity or district
174school board from issuing bonds, notes, certificates of
175indebtedness, or any other form of debt until such time as it is
176no longer subject to this section.
177     (d)  Making such inspections and reviews of records,
178information, reports, and assets of the local governmental
179entity or district school board. The appropriate local officials
180shall cooperate in such inspections and reviews.
181     (e)  Consulting with officials and auditors of the local
182governmental entity or the district school board and the
183appropriate state officials regarding any steps necessary to
184bring the books of account, accounting systems, financial
185procedures, and reports into compliance with state requirements.
186     (f)  Providing technical assistance to the local
187governmental entity or the district school board.
188     (g)1.  Establishing a financial emergency board to oversee
189the activities of the local governmental entity or the district
190school board. If a financial emergency board is established for
191a local governmental entity, the Governor shall appoint board
192members and select a chair. If a financial emergency board is
193established for a district school board, the State Board of
194Education shall appoint board members and select a chair. The
195financial emergency board shall adopt such rules as are
196necessary for conducting board business. The board may:
197     a.  Make such reviews of records, reports, and assets of
198the local governmental entity or the district school board as
199are needed.
200     b.  Consult with officials and auditors of the local
201governmental entity or the district school board and the
202appropriate state officials regarding any steps necessary to
203bring the books of account, accounting systems, financial
204procedures, and reports of the local governmental entity or the
205district school board into compliance with state requirements.
206     c.  Review the operations, management, efficiency,
207productivity, and financing of functions and operations of the
208local governmental entity or the district school board.
209     2.  The recommendations and reports made by the financial
210emergency board must be submitted to the Governor for local
211governmental entities or to the Commissioner of Education and
212the State Board of Education for district school boards for
213appropriate action.
214     (h)  Requiring and approving a plan, to be prepared by
215officials of the local governmental entity or the district
216school board in consultation with the appropriate state
217officials, prescribing actions that will cause the local
218governmental entity or district school board to no longer be
219subject to this section. The plan must include, but need not be
220limited to:
221     1.  Provision for payment in full of obligations outlined
222in subsection (1), designated as priority items, that are
223currently due or will come due.
224     2.  Establishment of priority budgeting or zero-based
225budgeting in order to eliminate items that are not affordable.
226     3.  The prohibition of a level of operations which can be
227sustained only with nonrecurring revenues.
228     (4)(a)  Upon notification that one or more of the
229conditions in subsection (1) have occurred or will occur if
230action is not taken to assist the charter school exist, the
231charter school sponsor or the sponsor's designee and the
232Commissioner of Education shall contact the charter school
233governing body to determine what actions have been taken by the
234charter school governing body to resolve or prevent the
235condition. The Commissioner of Education charter school sponsor
236has the authority to require and approve a financial recovery
237plan, to be prepared by the charter school governing body,
238prescribing actions that will resolve or prevent the condition
239cause the charter school to no longer be subject to this
240section. The Department of Education shall establish guidelines
241for developing such plans.
242     (b)  Upon notification that one or more of the conditions
243in subsection (1) have occurred or will occur if action is not
244taken to assist the charter technical career center, the charter
245technical career center sponsor or the sponsor's designee and
246the Commissioner of Education shall contact the charter
247technical career center governing body to determine what actions
248have been taken by the governing body to resolve or prevent the
249condition. The Commissioner of Education may require and approve
250a financial recovery plan, to be prepared by the charter
251technical career center governing body, prescribing actions that
252will resolve or prevent the condition.
253     (c)  The Commissioner of Education shall determine if the
254charter school or charter technical career center needs a
255financial recovery plan to resolve the condition. If the
256Commissioner of Education determines that a financial recovery
257plan is needed, the charter school or charter technical career
258center is considered to be in a state of financial emergency.
259
260The Department of Education, with the involvement of sponsors,
261charter schools, and charter technical career centers, shall
262establish guidelines for developing a financial recovery plan.
263     Section 6.  Section 218.504, Florida Statutes, is amended
264to read:
265     218.504  Cessation of state action.--The Governor or the
266Commissioner of Education, as appropriate, has the authority to
267terminate all state actions pursuant to ss. 218.50-218.504.
268Cessation of state action must not occur until the Governor or
269the Commissioner of Education, as appropriate, has determined
270that:
271     (1)  The local governmental entity, charter school, charter
272technical career center, or district school board:
273     (a)  Has established and is operating an effective
274financial accounting and reporting system.
275     (b)  Has resolved the conditions outlined in s. 218.503(1).
276     (2)  None of the conditions outlined in s. 218.503(1)
277exists.
278     Section 7.  Paragraph (b) of subsection (5), paragraphs
279(a), (b), and (g) of subsection (6), paragraph (a) of subsection
280(7), paragraphs (a) and (d) of subsection (8), paragraphs (g)
281through (q) of subsection (9), paragraph (d) of subsection (10),
282subsection (16), paragraph (a) of subsection (20), and
283subsections (21) and (23) of section 1002.33, Florida Statutes,
284are amended, present subsection (24) of that section is
285renumbered as subsection (26), and new subsections (24) and (25)
286are added to that section, to read:
287     1002.33  Charter schools.--
288     (5)  SPONSOR; DUTIES.--
289     (b)  Sponsor duties.--
290     1.a.  The sponsor shall monitor and review the charter
291school in its progress toward the goals established in the
292charter.
293     b.  The sponsor shall monitor the revenues and expenditures
294of the charter school and perform the duties provided in s.
2951002.345.
296     c.  The sponsor may not deny approve a charter for a
297charter school because before the applicant has not secured
298space, equipment, or personnel, if the applicant indicates
299approval is necessary for it to raise working funds.
300     d.  The sponsor's policies shall not apply to a charter
301school unless mutually agreed to by both the sponsor and the
302charter school.
303     e.  The sponsor shall ensure that the charter is innovative
304and consistent with the state education goals established by s.
3051000.03(5).
306     f.  The sponsor shall ensure that the charter school
307participates in the state's education accountability system. If
308a charter school falls short of performance measures included in
309the approved charter, the sponsor shall report such shortcomings
310to the Department of Education.
311     g.  The sponsor shall not be liable for civil damages under
312state law for personal injury, property damage, or death
313resulting from an act or omission of an officer, employee,
314agent, or governing body of the charter school.
315     h.  The sponsor shall not be liable for civil damages under
316state law for any employment actions taken by an officer,
317employee, agent, or governing body of the charter school.
318     i.  The sponsor's duties to monitor the charter school
319shall not constitute the basis for a private cause of action.
320     j.  The sponsor shall not impose additional reporting
321requirements on a charter school without providing reasonable
322and specific justification in writing to the charter school.
323     2.  Immunity for the sponsor of a charter school under
324subparagraph 1. applies only with respect to acts or omissions
325not under the sponsor's direct authority as described in this
326section.
327     3.  Nothing contained in This paragraph does not waive
328shall be considered a waiver of sovereign immunity by a district
329school board's sovereign immunity board.
330     4.  A community college may work with the school district
331or school districts in its designated service area to develop
332charter schools that offer secondary education. These charter
333schools must include an option for students to receive an
334associate degree upon high school graduation. District school
335boards shall cooperate with and assist the community college on
336the charter application. Community college applications for
337charter schools are not subject to the time deadlines outlined
338in subsection (6) and may be approved by the district school
339board at any time during the year. Community colleges may shall
340not report FTE for any students who receive FTE funding through
341the Florida Education Finance Program.
342     (6)  APPLICATION PROCESS AND REVIEW.--Charter school
343applications are subject to the following requirements:
344     (a)  A person or entity wishing to open a charter school
345shall prepare and submit an application on a model application
346form prepared by the Department of Education which that:
347     1.  Demonstrates how the school will use the guiding
348principles and meet the statutorily defined purpose of a charter
349school.
350     2.  Provides a detailed curriculum plan that illustrates
351how students will be provided services to attain the Sunshine
352State Standards.
353     3.  Contains goals and objectives for improving student
354learning and measuring that improvement. These goals and
355objectives must indicate how much academic improvement students
356are expected to show each year, how success will be evaluated,
357and the specific results to be attained through instruction.
358     4.  Describes the reading curriculum and differentiated
359strategies that will be used for students reading at grade level
360or higher and a separate curriculum and strategies for students
361who are reading below grade level. A sponsor shall deny a
362charter if the school does not propose a reading curriculum that
363is consistent with effective teaching strategies that are
364grounded in scientifically based reading research.
365     5.  Contains an annual financial plan for each year
366requested by the charter for operation of the school for up to 5
367years. This plan must contain anticipated fund balances based on
368revenue projections, a spending plan based on projected revenues
369and expenses, and a description of controls that will safeguard
370finances and projected enrollment trends.
371     6.  Documents that the applicant has participated in the
372training required in subparagraph (g)2. A sponsor may require an
373applicant to provide additional information as an addendum to
374the charter school application described in this paragraph.
375     (b)  A sponsor shall receive and review all applications
376for a charter school using an evaluation instrument developed by
377the Department of Education. A sponsor may require an applicant
378to provide additional information as an addendum to this
379evaluation instrument. Beginning with the 2007-2008 school year,
380a sponsor shall receive and consider charter school applications
381received on or before August 1 of each calendar year for charter
382schools to be opened at the beginning of the school district's
383next school year, or to be opened at a time agreed to by the
384applicant and the sponsor. A sponsor may receive applications
385later than this date if it chooses. A sponsor may not charge an
386applicant for a charter any fee for the processing or
387consideration of an application, and a sponsor may not base its
388consideration or approval of an application upon the promise of
389future payment of any kind.
390     1.  In order to facilitate an accurate budget projection
391process, a sponsor shall be held harmless for FTE students who
392are not included in the FTE projection due to approval of
393charter school applications after the FTE projection deadline.
394In a further effort to facilitate an accurate budget projection,
395within 15 calendar days after receipt of a charter school
396application, a sponsor shall report to the Department of
397Education the name of the applicant entity, the proposed charter
398school location, and its projected FTE.
399     2.  In order to ensure fiscal responsibility, an
400application for a charter school shall include a full accounting
401of expected assets, a projection of expected sources and amounts
402of income, including income derived from projected student
403enrollments and from community support, and an expense
404projection that includes full accounting of the costs of
405operation, including start-up costs.
406     3.  A sponsor shall by a majority vote approve or deny an
407application no later than 60 calendar days after the application
408is received, unless the sponsor and the applicant mutually agree
409in writing to temporarily postpone the vote to a specific date,
410at which time the sponsor shall by a majority vote approve or
411deny the application. If the sponsor fails to act on the
412application, an applicant may appeal to the State Board of
413Education as provided in paragraph (c). If an application is
414denied, the sponsor shall, within 10 calendar days after such
415denial, articulate in writing the specific reasons, based upon
416good cause, supporting its denial of the charter application and
417shall provide the letter of denial and supporting documentation
418to the applicant and to the Department of Education supporting
419those reasons.
420     4.  For budget projection purposes, the sponsor shall
421report to the Department of Education the approval or denial of
422a charter application within 10 calendar days after such
423approval or denial. In the event of approval, the report to the
424Department of Education shall include the final projected FTE
425for the approved charter school.
426     5.  Upon approval of a charter application, the initial
427startup shall commence with the beginning of the public school
428calendar for the district in which the charter is granted unless
429the sponsor allows a waiver of this subparagraph provision for
430good cause.
431     (g)1.  The Department of Education shall offer or arrange
432for training and technical assistance to charter school
433applicants in developing business plans and estimating costs and
434income. This assistance shall address estimating startup costs,
435projecting enrollment, and identifying the types and amounts of
436state and federal financial assistance the charter school may
437will be eligible to receive. The department may provide other
438technical assistance to an applicant upon written request.
439     2.  A charter school applicant must participate in the
440training provided by the Department of Education before filing
441an application. However, a sponsor may require the charter
442school applicant to attend training provided by the sponsor in
443lieu of the department's training if the sponsor's training
444standards meet or exceed the standards developed by the
445Department of Education. The training shall include instruction
446in accurate financial planning and good business practices. The
447charter school principal, if he or she has been hired, and a
448qualified representative of any management company or nonprofit
449organization must also participate in the training if the
450applicant intends to contract with such entity as part of its
451application.
452     (7)  CHARTER.--The major issues involving the operation of
453a charter school shall be considered in advance and written into
454the charter. The charter shall be signed by the governing body
455of the charter school and the sponsor, following a public
456hearing to ensure community input.
457     (a)  The charter shall address, and criteria for approval
458of the charter shall be based on:
459     1.  The school's mission, the students to be served, and
460the ages and grades to be included.
461     2.  The focus of the curriculum, the instructional methods
462to be used, any distinctive instructional techniques to be
463employed, and identification and acquisition of appropriate
464technologies needed to improve educational and administrative
465performance which include a means for promoting safe, ethical,
466and appropriate uses of technology which comply with legal and
467professional standards. The charter shall ensure that reading is
468a primary focus of the curriculum and that resources are
469provided to identify and provide specialized instruction for
470students who are reading below grade level. The curriculum and
471instructional strategies for reading must be consistent with the
472Sunshine State Standards and grounded in scientifically based
473reading research.
474     3.  The current incoming baseline standard of student
475academic achievement, the outcomes to be achieved, and the
476method of measurement that will be used. The criteria listed in
477this subparagraph shall include a detailed description for each
478of the following:
479     a.  How the baseline student academic achievement levels
480and prior rates of academic progress will be established.
481     b.  How these baseline rates will be compared to rates of
482academic progress achieved by these same students while
483attending the charter school.
484     c.  To the extent possible, how these rates of progress
485will be evaluated and compared with rates of progress of other
486closely comparable student populations.
487
488The district school board is required to provide academic
489student performance data to charter schools for each of their
490students coming from the district school system, as well as
491rates of academic progress of comparable student populations in
492the district school system.
493     4.  The methods used to identify the educational strengths
494and needs of students and how well educational goals and
495performance standards are met by students attending the charter
496school. Included in The methods shall provide is a means for the
497charter school to ensure accountability to its constituents by
498analyzing student performance data and by evaluating the
499effectiveness and efficiency of its major educational programs.
500Students in charter schools shall, at a minimum, participate in
501the statewide assessment program created under s. 1008.22.
502     5.  In secondary charter schools, a method for determining
503that a student has satisfied the requirements for graduation in
504s. 1003.428, s. 1003.429, or s. 1003.43.
505     6.  A method for resolving conflicts between the governing
506body of the charter school and the sponsor.
507     7.  The admissions procedures and dismissal procedures,
508including the school's code of student conduct.
509     8.  The ways by which the school will achieve a
510racial/ethnic balance reflective of the community it serves or
511within the racial/ethnic range of other public schools in the
512same school district.
513     9.  The financial and administrative management of the
514school, including a reasonable demonstration of the professional
515experience or competence of those individuals or organizations
516applying to operate the charter school or those hired or
517retained to perform such professional services and the
518description of clearly delineated responsibilities and the
519policies and practices needed to effectively manage the charter
520school. A description of internal audit procedures and
521establishment of controls to ensure that financial resources are
522properly managed must be included. Both public sector and
523private sector professional experience shall be equally valid in
524such a consideration.
525     10.  The asset and liability projections required in the
526application which are incorporated into the charter and which
527shall be compared with information provided in the annual report
528of the charter school. The charter shall ensure that, if a
529charter school internal audit or annual financial audit reveals
530a state of financial emergency as defined in s. 218.503 or
531deficit financial position, the auditors are required to notify
532the charter school governing board, the sponsor, and the
533Department of Education. The internal auditor shall report such
534findings in the form of an exit interview to the principal or
535the principal administrator of the charter school and the chair
536of the governing board within 7 working days after finding the
537state of financial emergency or deficit position. A final report
538shall be provided to the entire governing board, the sponsor,
539and the Department of Education within 14 working days after the
540exit interview. When a charter school is in a state of financial
541emergency, the charter school shall file a detailed financial
542recovery plan with the sponsor. The department, with the
543involvement of both sponsors and charter schools, shall
544establish guidelines for developing such plans.
545     11.  A description of procedures that identify various
546risks and provide for a comprehensive approach to reduce the
547impact of losses; plans to ensure the safety and security of
548students and staff; plans to identify, minimize, and protect
549others from violent or disruptive student behavior; and the
550manner in which the school will be insured, including whether or
551not the school will be required to have liability insurance,
552and, if so, the terms and conditions thereof and the amounts of
553coverage.
554     12.  The term of the charter which shall provide for
555cancellation of the charter if insufficient progress has been
556made in attaining the student achievement objectives of the
557charter and if it is not likely that such objectives can be
558achieved before expiration of the charter. The initial term of a
559charter shall be for 4 or 5 years. In order to facilitate access
560to long-term financial resources for charter school
561construction, charter schools that are operated by a
562municipality or other public entity as provided by law are
563eligible for up to a 15-year charter, subject to approval by the
564district school board. A charter lab school is eligible for a
565charter for a term of up to 15 years. In addition, to facilitate
566access to long-term financial resources for charter school
567construction, charter schools that are operated by a private,
568not-for-profit, s. 501(c)(3) status corporation are eligible for
569up to a 15-year charter, subject to approval by the district
570school board. Such long-term charters remain subject to annual
571review and may be terminated during the term of the charter, but
572only according to the provisions set forth in subsection (8).
573     13.  The facilities to be used and their location.
574     14.  The qualifications to be required of the teachers and
575the potential strategies used to recruit, hire, train, and
576retain qualified staff to achieve best value.
577     15.  The governance structure of the school, including the
578status of the charter school as a public or private employer as
579required in paragraph (12)(i).
580     16.  A timetable for implementing the charter which
581addresses the implementation of each element thereof and the
582date by which the charter shall be awarded in order to meet this
583timetable.
584     17.  In the case of an existing public school that is being
585converted to charter status, alternative arrangements for
586current students who choose not to attend the charter school and
587for current teachers who choose not to teach in the charter
588school after conversion in accordance with the existing
589collective bargaining agreement or district school board rule in
590the absence of a collective bargaining agreement. However,
591alternative arrangements shall not be required for current
592teachers who choose not to teach in a charter lab school, except
593as authorized by the employment policies of the state university
594which grants the charter to the lab school.
595     18.  Full disclosure of the identity of all relatives
596employed by the charter school who are related to the charter
597school owner, president, chair of the governing board of
598directors, superintendent, governing board member, principal,
599assistant principal, or any other person employed by the charter
600school who has equivalent decisionmaking authority. For the
601purpose of this subparagraph, the term "relative" means father,
602mother, son, daughter, brother, sister, uncle, aunt, first
603cousin, nephew, niece, husband, wife, father-in-law, mother-in-
604law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
605stepfather, stepmother, stepson, stepdaughter, stepbrother,
606stepsister, half brother, or half sister.
607     (8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
608     (a)1.  The sponsor may choose not to renew or may terminate
609the charter for any of the following grounds:
610     a.1.  Failure to participate in the state's education
611accountability system created in s. 1008.31, as required in this
612section, or failure to meet the requirements for student
613performance stated in the charter.
614     b.2.  Failure to meet generally accepted standards of
615fiscal management.
616     c.3.  Violation of law.
617     2.  The sponsor may show other good cause not to renew or
618to terminate a charter to the Commissioner of Education who may
619terminate the charter on this basis.
620     4.  Other good cause shown.
621     (d)  A charter may be terminated immediately if the sponsor
622determines that good cause has been shown or if the health,
623safety, or welfare of the students is threatened. The sponsor's
624determination is not subject to an informal hearing under
625paragraph (b) or pursuant to chapter 120. The sponsor shall
626notify in writing the charter school's governing body, the
627charter school principal, and the department if a charter is
628immediately terminated. The sponsor shall clearly identify the
629specific issues that resulted in the immediate termination and
630provide evidence of prior notification of issues resulting in
631the immediate termination when appropriate. The school district
632in which the charter school is located shall assume operation of
633the school under these circumstances. The charter school's
634governing board may, within 30 days after receiving the
635sponsor's decision to terminate the charter, appeal the decision
636pursuant to the procedure established in subsection (6).
637     (9)  CHARTER SCHOOL REQUIREMENTS.--
638     (g)  A charter school shall provide for an annual financial
639audit in accordance with s. 218.39. Financial audits that reveal
640a state of financial emergency as defined in s. 218.503 and are
641conducted by a certified public accountant or auditor in
642accordance with s. 218.39 shall be provided to the governing
643body of the charter school within 7 working days after finding
644that a state of financial emergency exists. When a charter
645school is found to be in a state of financial emergency by a
646certified public accountant or auditor, the charter school must
647file a detailed financial recovery plan with the sponsor within
64830 days after receipt of the audit.
649     (g)(h)  In order to provide financial information that is
650comparable to that reported for other public schools, charter
651schools are to maintain all financial records that which
652constitute their accounting system:
653     1.  In accordance with the accounts and codes prescribed in
654the most recent issuance of the publication titled "Financial
655and Program Cost Accounting and Reporting for Florida Schools";
656or
657     2.  At the discretion of the charter school governing
658board, a charter school may elect to follow generally accepted
659accounting standards for not-for-profit organizations, but must
660reformat this information for reporting according to this
661paragraph.
662
663Charter schools shall provide annual financial report and
664program cost report information in the state-required formats
665for inclusion in district reporting in compliance with s.
6661011.60(1). Charter schools that are operated by a municipality
667or are a component unit of a parent nonprofit organization may
668use the accounting system of the municipality or the parent but
669must reformat this information for reporting according to this
670paragraph. A charter school shall provide a monthly financial
671statement to the sponsor during their initial contract. Upon
672renewal of the charter or at the request of the sponsor, a
673charter school shall provide the financial statement to the
674sponsor on a quarterly basis. The content and form of the
675monthly financial statement shall be prescribed by the
676Department of Education.
677     (h)(i)  The governing board of the charter school shall
678annually adopt and maintain an operating budget.
679     (i)(j)  The governing body of the charter school shall
680exercise continuing oversight over charter school operations.
681     (j)(k)  The governing body of the charter school shall be
682responsible for:
683     1.  Ensuring that the charter school has retained the
684services of a certified public accountant or auditor for the
685annual financial audit, pursuant to s. 1002.345(2) paragraph
686(g), who shall submit the report to the governing body.
687     2.  Reviewing and approving the audit report, including
688audit findings and recommendations for the financial recovery
689plan.
690     3.a.  Performing the duties in s. 1002.345, including
691monitoring a corrective action plan.
692     b.  Monitoring a financial recovery plan in order to ensure
693compliance.
694     4.  Participating in governance training approved by the
695department which that must include government in the sunshine,
696conflicts of interest, ethics, and financial responsibility.
697Members of the governing body shall not be required to attend
698governance training more than once. New members are required to
699participate in the training within 6 months after beginning
700their role as a governing board member.
701     (k)(l)  The governing body of the charter school shall
702report its progress annually to its sponsor, which shall forward
703the report to the Commissioner of Education at the same time as
704other annual school accountability reports. The Department of
705Education shall develop a uniform, online annual accountability
706report to be completed by charter schools. This report shall be
707easy to utilize and contain demographic information, student
708performance data, and financial accountability information. A
709charter school shall not be required to provide information and
710data that is duplicative and already in the possession of the
711department. The Department of Education shall include in its
712compilation a notation if a school failed to file its report by
713the deadline established by the department. The report shall
714include at least the following components:
715     1.  Student achievement performance data, including the
716information required for the annual school report and the
717education accountability system governed by ss. 1008.31 and
7181008.345. Charter schools are subject to the same accountability
719requirements as other public schools, including reports of
720student achievement information that links baseline student data
721to the school's performance projections identified in the
722charter. The charter school shall identify reasons for any
723difference between projected and actual student performance.
724     2.  Financial status of the charter school which must
725include revenues and expenditures at a level of detail that
726allows for analysis of the charter school's ability to meet
727financial obligations and timely repayment of debt.
728     3.  Documentation of the facilities in current use and any
729planned facilities for use by the charter school for instruction
730of students, administrative functions, or investment purposes.
731     4.  Descriptive information about the charter school's
732personnel, including salary and benefit levels of charter school
733employees, the proportion of instructional personnel who hold
734professional or temporary certificates, and the proportion of
735instructional personnel teaching in-field or out-of-field.
736     (l)(m)  A charter school shall not levy taxes or issue
737bonds secured by tax revenues.
738     (m)(n)  A charter school shall provide instruction for at
739least the number of days required by law for other public
740schools, and may provide instruction for additional days.
741     (n)(o)  The director and a representative of the governing
742body of a charter school that has received a school grade of "D"
743under s. 1008.34(2) shall appear before the sponsor or the
744sponsor's staff at least once a year to present information
745concerning each contract component having noted deficiencies.
746The sponsor shall communicate at the meeting, and in writing to
747the director, the services provided to the school to help the
748school address its deficiencies.
749     (o)(p)  Upon notification that a charter school receives a
750school grade of "D" for 2 consecutive years or a school grade of
751"F" under s. 1008.34(2), the charter school sponsor or the
752sponsor's staff shall require the director and a representative
753of the governing body to submit to the sponsor for approval a
754school improvement plan to raise student achievement and to
755implement the plan. The sponsor has the authority to approve a
756school improvement plan that the charter school will implement
757in the following school year. The sponsor may also consider the
758State Board of Education's recommended action pursuant to s.
7591008.33(1) as part of the school improvement plan. The
760Department of Education shall offer technical assistance and
761training to the charter school and its governing body and
762establish guidelines for developing, submitting, and approving
763such plans.
764     1.  If the charter school fails to improve its student
765performance from the year immediately prior to the
766implementation of the school improvement plan, the sponsor shall
767place the charter school on probation and shall require the
768charter school governing body to take one of the following
769corrective actions:
770     a.  Contract for the educational services of the charter
771school;
772     b.  Reorganize the school at the end of the school year
773under a new director or principal who is authorized to hire new
774staff and implement a plan that addresses the causes of
775inadequate progress; or
776     c.  Reconstitute the charter school.
777     2.  A charter school that is placed on probation shall
778continue the corrective actions required under subparagraph 1.
779until the charter school improves its student performance from
780the year prior to the implementation of the school improvement
781plan.
782     3.  Notwithstanding any provision of this paragraph, the
783sponsor may terminate the charter at any time pursuant to the
784provisions of subsection (8).
785     (p)(q)  The director and a representative of the governing
786body of a graded charter school that has submitted a school
787improvement plan or has been placed on probation under paragraph
788(o) (p) shall appear before the sponsor or the sponsor's staff
789at least once a year to present information regarding the
790corrective strategies that are being implemented by the school
791pursuant to the school improvement plan. The sponsor shall
792communicate at the meeting, and in writing to the director, the
793services provided to the school to help the school address its
794deficiencies.
795     (10)  ELIGIBLE STUDENTS.--
796     (d)  A charter school may give enrollment preference to the
797following student populations:
798     1.  Students who are siblings of a student enrolled in the
799charter school.
800     2.  Students who are the children of a member of the
801governing board of the charter school.
802     3.  Students who are the children of an employee of the
803charter school.
804     (16)  EXEMPTION FROM STATUTES.--
805     (a)  A charter school shall operate in accordance with its
806charter and shall be exempt from all statutes in chapters 1000-
8071013. However, a charter school shall be in compliance with the
808following statutes in chapters 1000-1013:
809     1.  Those statutes specifically applying to charter
810schools, including this section.
811     2.  Those statutes pertaining to the student assessment
812program and school grading system.
813     3.  Those statutes pertaining to the provision of services
814to students with disabilities.
815     4.  Those statutes pertaining to civil rights, including s.
8161000.05, relating to discrimination.
817     5.  Those statutes pertaining to student health, safety,
818and welfare.
819     6.  Those statutes pertaining to the constitutional class
820size maximums pursuant to s. 1, Art. IX of the State
821Constitution, including s. 1003.03.
822     (b)  Additionally, a charter school shall be in compliance
823with the following statutes:
824     1.  Section 286.011, relating to public meetings and
825records, public inspection, and criminal and civil penalties.
826     2.  Chapter 119, relating to public records.
827     (20)  SERVICES.--
828     (a)1.  A sponsor shall provide certain administrative and
829educational services to charter schools. These services shall
830include contract management services; full-time equivalent and
831data reporting services; exceptional student education
832administration services; services related to eligibility and
833reporting duties required to ensure that school lunch services
834under the federal lunch program, consistent with the needs of
835the charter school, are provided by the school district at the
836request of the charter school; test administration services,
837including payment of the costs of state-required or district-
838required student assessments; processing of teacher certificate
839data services; and information services, including equal access
840to student information systems that are used by public schools
841in the district in which the charter school is located. Student
842performance data for each student in a charter school,
843including, but not limited to, FCAT scores, standardized test
844scores, previous public school student report cards, and student
845performance measures, shall be provided by the sponsor to a
846charter school in the same manner provided to other public
847schools in the district.
848     2.  A total administrative fee for the provision of such
849services under subparagraph 1. shall be calculated based upon up
850to 5 percent of the available funds defined in paragraph (17)(b)
851for all students. However, a sponsor may only withhold up to a
8525-percent administrative fee for enrollment for up to and
853including 500 students. For charter schools with a population of
854501 or more students, the difference between the total
855administrative fee calculation and the amount of the
856administrative fee withheld may only be used for capital outlay
857purposes specified in s. 1013.62(2). Each charter school shall
858receive 100 percent of the funds awarded to that school pursuant
859to s. 1012.225. Sponsors shall not charge charter schools any
860additional fees or surcharges for administrative and educational
861services in addition to the maximum 5-percent administrative fee
862withheld pursuant to this subparagraph paragraph.
863     (21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--
864     (a)  The Department of Education shall provide information
865to the public, directly and through sponsors, both on how to
866form and operate a charter school and on how to enroll in a
867charter school schools once it is they are created. This
868information shall include a standard application format, charter
869format, evaluation instrument, and charter renewal format, which
870shall include the information specified in subsection (7) and
871shall be developed by consulting and negotiating with both
872school districts and charter schools before implementation. The
873charter and charter renewal These formats shall be used as
874guidelines by charter school sponsors.
875     (b)1.  The Department of Education shall report student
876assessment data pursuant to s. 1008.34(3)(c) which is reported
877to schools that receive a school grade or student assessment
878data pursuant to s. 1008.341(3) which is reported to alternative
879schools that receive a school improvement rating to each charter
880school that:
881     a.  Does not receive a school grade pursuant to s. 1008.34
882or a school improvement rating pursuant to s. 1008.341; and
883     b.  Serves at least 10 students who are tested on the
884statewide assessment test pursuant to s. 1008.22.
885     2.  The charter school shall report the information in
886subparagraph 1. to each parent of a student at the charter
887school, the district in which the charter school is located, and
888the governing board of the charter school. This paragraph does
889not abrogate the provisions of s. 1002.22, relating to student
890records, or the requirements of 20 U.S.C. s. 1232g, the Family
891Educational Rights and Privacy Act.
892     3.a.  Pursuant to this paragraph, the Department of
893Education shall compare the charter school student performance
894data for each charter school in subparagraph 1. with the student
895performance data in traditional public schools in the district
896in which the charter school is located and other charter schools
897in the state with substantially similar demographics in
898ethnicity, exceptional student education, English for Speakers
899of Other Languages, and free and reduced-price lunch
900populations. For alternative charter schools, the department
901shall compare the student performance data described in this
902paragraph with alternative schools in the state with
903substantially similar demographics in ethnicity, exceptional
904student education, English for Speakers of Other Languages, and
905free and reduced-price lunch populations.
906     b.  Each charter school shall provide the information
907specified in this paragraph on its Internet website and also
908provide notice to the public at large in a manner provided by
909the rules of the State Board of Education. The State Board of
910Education shall adopt rules to administer the notice
911requirements of this subparagraph. The website shall include,
912through links or actual content, other information related to
913school performance.
914     (23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
915of the annual report required by paragraph (9)(k) (9)(l), the
916Department of Education shall provide to the State Board of
917Education, the Commissioner of Education, the Governor, the
918President of the Senate, and the Speaker of the House of
919Representatives an analysis and comparison of the overall
920performance of charter school students, to include all students
921whose scores are counted as part of the statewide assessment
922program, versus comparable public school students in the
923district as determined by the statewide assessment program
924currently administered in the school district, and other
925assessments administered pursuant to s. 1008.22(3).
926     (24)  RESTRICTION ON EMPLOYMENT OF RELATIVES.--
927     (a)  This subsection applies to charter school personnel in
928a charter school operated by a private entity. Charter school
929personnel in schools operated by a municipality or other public
930entity are subject to s. 112.3135. As used in this subsection,
931the term:
932     1.  "Charter school personnel" means a charter school
933owner, president, chair of the governing board of directors,
934superintendent, governing board member, principal, assistant
935principal, or any other person employed by the charter school
936who has equivalent decisionmaking authority and in whom is
937vested the authority, or to whom the authority has been
938delegated, to appoint, employ, promote, or advance individuals
939or to recommend individuals for appointment, employment,
940promotion, or advancement in connection with employment in a
941charter school, including the authority as a member of a
942governing board of a charter school to vote on the appointment,
943employment, promotion, or advancement of individuals.
944     2.  "Relative" means father, mother, son, daughter,
945brother, sister, uncle, aunt, first cousin, nephew, niece,
946husband, wife, father-in-law, mother-in-law, son-in-law,
947daughter-in-law, brother-in-law, sister-in-law, stepfather,
948stepmother, stepson, stepdaughter, stepbrother, stepsister, half
949brother, or half sister.
950     (b)1.  Charter school personnel may not knowingly recommend
951or engage in the appointment, employment, promotion, or
952advancement of an individual or employee into a position at a
953work location if that action will create a situation in which
954one employee will be responsible for the direct supervision of,
955or exercise jurisdiction or control over, another employee who
956is a relative.
957     2.  The Commissioner of Education or the charter school's
958sponsor may grant a waiver of subparagraph 1. if such
959prohibition would cause an undue hardship to students or would
960seriously disrupt a charter school's operations.
961     3.  This paragraph does not prohibit the employment of
962relatives at the same work location as long as subparagraph 1.
963is not violated.
964     4.  The approval of budgets does not constitute
965"jurisdiction or control" for the purposes of this paragraph.
966     (25)  STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--
967     (a)  A member of a governing board of a charter school,
968including a charter school operated by a private entity, is
969subject to ss. 112.313(2), (3), (7), and (12) and 112.3143(3).
970     (b)  A member of a governing board of a charter school
971operated by a municipality or other public entity is subject to
972s. 112.3144, which relates to the disclosure of financial
973interests.
974     Section 8.  Subsections (4) and (5), paragraphs (d) and (f)
975of subsection (6), paragraph (c) of subsection (10), paragraph
976(f) of subsection (11), and subsection (13) of section 1002.34,
977Florida Statutes, are amended to read:
978     1002.34  Charter technical career centers.--
979     (4)  CHARTER.--A sponsor may designate centers as provided
980in this section. An application to establish a center may be
981submitted by a sponsor or another organization that is
982determined, by rule of the State Board of Education, to be
983appropriate. However, an independent school is not eligible for
984status as a center. The charter must be signed by the governing
985body of the center and the sponsor, and must be approved by the
986district school board and community college board of trustees in
987whose geographic region the facility is located. If a charter
988technical career center is established by the conversion to
989charter status of a public technical center formerly governed by
990a district school board, the charter status of that center takes
991precedence in any question of governance. The governance of the
992center or of any program within the center remains with its
993board of directors unless the board agrees to a change in
994governance or its charter is revoked as provided in subsection
995(15). Such a conversion charter technical career center is not
996affected by a change in the governance of public technical
997centers or of programs within other centers that are or have
998been governed by district school boards. A charter technical
999career center, or any program within such a center, that was
1000governed by a district school board and transferred to a
1001community college prior to the effective date of this act is not
1002affected by this provision. An applicant who wishes to establish
1003a center must submit to the district school board or community
1004college board of trustees, or a consortium of one or more of
1005each, an application on a form developed by the Department of
1006Education which that includes:
1007     (a)  The name of the proposed center.
1008     (b)  The proposed structure of the center, including a list
1009of proposed members of the board of directors or a description
1010of the qualifications for and method of their appointment or
1011election.
1012     (c)  The workforce development goals of the center, the
1013curriculum to be offered, and the outcomes and the methods of
1014assessing the extent to which the outcomes are met.
1015     (d)  The admissions policy and criteria for evaluating the
1016admission of students.
1017     (e)  A description of the staff responsibilities and the
1018proposed qualifications of the teaching staff.
1019     (f)  A description of the procedures to be implemented to
1020ensure significant involvement of representatives of business
1021and industry in the operation of the center.
1022     (g)  A method for determining whether a student has
1023satisfied the requirements for graduation specified in s.
10241003.43 and for completion of a postsecondary certificate or
1025degree.
1026     (h)  A method for granting secondary and postsecondary
1027diplomas, certificates, and degrees.
1028     (i)  A description of and address for the physical facility
1029in which the center will be located.
1030     (j)  A method for of resolving conflicts between the
1031governing body of the center and the sponsor and between
1032consortium members, if applicable.
1033     (k)  A method for reporting student data as required by law
1034and rule.
1035     (l)  A statement that the applicant has participated in the
1036training provided by the Department of Education.
1037     (m)  The identity of all relatives employed by the charter
1038technical career center who are related to the center owner,
1039president, chair of the governing board of directors,
1040superintendent, governing board member, principal, assistant
1041principal, or any other person employed by the center who has
1042equivalent decisionmaking authority. As used in this paragraph,
1043the term "relative" means father, mother, son, daughter,
1044brother, sister, uncle, aunt, first cousin, nephew, niece,
1045husband, wife, father-in-law, mother-in-law, son-in-law,
1046daughter-in-law, brother-in-law, sister-in-law, stepfather,
1047stepmother, stepson, stepdaughter, stepbrother, stepsister, half
1048brother, or half sister.
1049     (n)(l)  Other information required by the district school
1050board or community college board of trustees.
1051
1052Students at a center must meet the same testing and academic
1053performance standards as those established by law and rule for
1054students at public schools and public technical centers. The
1055students must also meet any additional assessment indicators
1056that are included within the charter approved by the district
1057school board or community college board of trustees.
1058     (5)  APPLICATION.--An application to establish a center
1059must be submitted by February 1 of the year preceding the school
1060year in which the center will begin operation. The sponsor must
1061review the application using an evaluation instrument developed
1062by the Department of Education and make a final decision on
1063whether to approve the application and grant the charter by
1064March 1, and may condition the granting of a charter on the
1065center's taking certain actions or maintaining certain
1066conditions. Such actions and conditions must be provided to the
1067applicant in writing. The district school board or community
1068college board of trustees is not required to issue a charter to
1069any person.
1070     (6)  SPONSOR.--A district school board or community college
1071board of trustees or a consortium of one or more of each may
1072sponsor a center in the county in which the board has
1073jurisdiction.
1074     (d)1.  The Department of Education shall offer or arrange
1075for training and technical assistance to applicants in
1076developing business plans and estimating costs and income. This
1077assistance shall address estimating startup costs, projecting
1078enrollment, and identifying the types and amounts of state and
1079federal financial assistance the center may be eligible to
1080receive. The training shall include instruction in accurate
1081financial planning and good business practices.
1082     2.  An applicant must participate in the training provided
1083by the Department of Education before filing an application. The
1084Department of Education may provide technical assistance to an
1085applicant upon written request.
1086     (f)  The sponsor shall monitor and review the center's
1087progress toward charter goals and shall monitor the center's
1088revenues and expenditures. The sponsor shall perform the duties
1089provided in s. 1002.345.
1090     (10)  EXEMPTION FROM STATUTES.--
1091     (c)  A center must comply with the antidiscrimination
1092provisions in of s. 1000.05 and the provisions in s. 1002.33(24)
1093which relate to the employment of relatives.
1094     (11)  FUNDING.--
1095     (f)  A center shall provide for an annual financial audit
1096in accordance with s. 218.39. A center shall provide a monthly
1097financial statement to the sponsor. The content and form of the
1098monthly financial statement shall be prescribed by the
1099Department of Education.
1100     (13)  BOARD OF DIRECTORS AUTHORITY.--The board of directors
1101of a center may decide matters relating to the operation of the
1102school, including budgeting, curriculum, and operating
1103procedures, subject to the center's charter. The board of
1104directors is responsible for performing the duties provided in
1105s. 1002.345, including monitoring the corrective action plan.
1106The board of directors must comply with s. 1002.33(25).
1107     Section 9.  Section 1002.345, Florida Statutes, is created
1108to read:
1109     1002.345  Determination of deteriorating financial
1110conditions and financial emergencies for charter schools and
1111charter technical career centers.--This section applies to
1112charter schools operating pursuant to s. 1002.33 and to charter
1113technical career centers operating pursuant to s. 1002.34.
1114     (1)  EXPEDITED REVIEW; REQUIREMENTS.--
1115     (a)  A charter school or a charter technical career center
1116is subject to an expedited review by the sponsor if one of the
1117following occurs:
1118     1.  Failure to provide for an audit required by s. 218.39.
1119     2.  Failure to comply with reporting requirements pursuant
1120to s. 1002.33(9) or s. 1002.34(11)(f) or (14).
1121     3.  A deteriorating financial condition identified through
1122an annual audit pursuant to s. 218.39(5) or a monthly financial
1123statement pursuant to s. 1002.33(9)(g) or s. 1002.34(11)(f).
1124"Deteriorating financial condition" means a circumstance that
1125significantly impairs the ability of a charter school or a
1126charter technical career center to generate enough revenues to
1127meet its expenditures without causing the occurrence of a
1128condition described in s. 218.503(1).
1129     4.  Notification pursuant to s. 218.503(2) that one or more
1130of the conditions specified in s. 218.503(1) have occurred or
1131will occur if action is not taken to assist the charter school
1132or charter technical career center.
1133     (b)  A sponsor shall notify the governing board within 7
1134business days after one or more of the conditions specified in
1135paragraph (a) occur.
1136     (c)  The governing board and the sponsor shall develop a
1137corrective action plan and file the plan with the Commissioner
1138of Education within 30 business days after notification is
1139received as provided in paragraph (b). If the governing board
1140and the sponsor are unable to agree on a corrective action plan,
1141the Commissioner of Education shall determine the components of
1142the plan. The governing board shall implement such plan.
1143     (d)  The governing board shall include the corrective
1144action plan and the status of its implementation in the annual
1145progress report to the sponsor which is required pursuant to s.
11461002.33(9)(k) or s. 1002.34(14).
1147     (e)  If the governing board fails to implement the
1148corrective action plan within 1 year after one or more of the
1149conditions specified in paragraph (a) occur, the State Board of
1150Education shall prescribe any steps necessary for the charter
1151school or the charter technical career center to comply with
1152state requirements.
1153     (f)  The chair of the governing board shall annually appear
1154before the State Board of Education and report on the
1155implementation of the State Board of Education's requirements
1156under paragraph (e).
1157     (2)  FINANCIAL EMERGENCY; REQUIREMENTS.--
1158     (a)1.  If a financial audit conducted by a certified public
1159accountant in accordance with s. 218.39 reveals that one or more
1160of the conditions in s. 218.503(1) have occurred or will occur
1161if action is not taken to assist the charter school or charter
1162technical career center, the auditor shall notify the governing
1163board of the charter school or charter technical career center,
1164as appropriate, the sponsor, and the Commissioner of Education
1165within 7 business days after the finding is made.
1166     2.  If the charter school or charter technical career
1167center is found to be in a state of financial emergency pursuant
1168to s. 218.503(4), the charter school or charter technical career
1169center shall file a financial recovery plan pursuant to s.
1170218.503 with the sponsor and the Commissioner of Education
1171within 30 days after being notified by the Commissioner of
1172Education that a financial recovery plan is needed.
1173     (b)  The governing board shall include the financial
1174recovery plan and the status of its implementation in the annual
1175progress report to the sponsor which is required under s.
11761002.33(9)(k) or s. 1002.34(14).
1177     (3)  REPORT.--The Commissioner of Education shall annually
1178report to the State Board of Education each charter school and
1179charter technical career center that is subject to a financial
1180recovery plan or a corrective action plan under this section.
1181     (4)  RULES.--The State Board of Education shall adopt rules
1182for developing financial recovery and corrective action plans,
1183defining a deteriorating financial condition pursuant to
1184subparagraph (1)(a)3., and establishing procedures for
1185determining a deteriorating financial condition pursuant to
1186subparagraph (1)(a)3. and s. 218.39(5). In adopting the rules,
1187the State Board of Education may obtain technical assistance
1188from the Auditor General.
1189     (5)  TECHNICAL ASSISTANCE.--The Department of Education
1190shall provide technical assistance to charter schools, charter
1191technical career centers, governing boards, and sponsors in
1192developing financial recovery and corrective action plans.
1193     (6)  FAILURE TO CORRECT DEFICIENCIES.--The sponsor may
1194decide not to renew or may terminate a charter if the charter
1195school or charter technical career center fails to correct the
1196deficiencies noted in the corrective action plan within 1 year
1197after being notified of the deficiencies or exhibits one or more
1198financial emergency conditions specified in s. 218.503 for 2
1199consecutive years. This subsection does not affect a sponsor's
1200authority to terminate or not renew a charter pursuant to s.
12011002.33(8).
1202     Section 10. Subsection (2) of section 1013.62, Florida
1203Statutes, is amended to read:
1204     1013.62  Charter schools capital outlay funding.--
1205     (2)  A charter school's governing body may use charter
1206school capital outlay funds for the following purposes:
1207     (a)  Purchase of real property.
1208     (b)  Construction of school facilities.
1209     (c)  Purchase, lease-purchase, or lease of permanent or
1210relocatable school facilities.
1211     (d)  Purchase of vehicles to transport students to and from
1212the charter school.
1213     (e)  Renovation, repair, and maintenance of school
1214facilities that the charter school owns or is purchasing through
1215a lease-purchase or long-term lease of 5 years or longer.
1216     (f)  Purchase, lease-purchase, or lease of new and
1217replacement equipment.
1218     (g)  Payment of the cost of premiums for property and
1219casualty insurance necessary to insure the school.
1220
1221Conversion charter schools may use capital outlay funds received
1222through the reduction in the administrative fee provided in s.
12231002.33(20) for renovation, repair, and maintenance of school
1224facilities that are owned by the sponsor.
1225     Section 11.  This act shall take effect July 1, 2009.
1226
1227
1228
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1229
T I T L E  A M E N D M E N T
1230     Remove the entire title and insert:
1231
A bill to be entitled
1232An act relating to charter schools; amending ss. 11.45,
1233218.39, 218.50, and 218.501, F.S., relating to audit
1234reports by the Auditor General and local financial
1235management; conforming provisions to changes made by the
1236act; amending ss. 218.503 and 218.504, F.S.; providing
1237that a charter technical career center is subject to
1238certain requirements in a financial emergency; requiring
1239certain notification when specified conditions have
1240occurred or will occur if action is not taken; authorizing
1241the Commissioner of Education to require and approve a
1242financial recovery plan; amending s. 1002.33, F.S.;
1243providing for duties of a charter school sponsor and
1244governing board if a charter school experiences a
1245deteriorating financial condition or is in a financial
1246emergency; prohibiting a sponsor from denying a charter
1247for specified reasons; requiring use of an application
1248form and an evaluation instrument; requiring applicant
1249training and documentation; updating cross-references
1250relating to high school graduation requirements;
1251conforming provisions relating to financial audits;
1252requiring charter schools to disclose the identity of
1253relatives of charter school personnel; authorizing the
1254Commissioner of Education to terminate a charter for good
1255cause; providing that the immediate termination of a
1256charter is exempt from certain hearing requirements;
1257requiring monthly financial statements; requiring that a
1258charter school comply with constitutional limitations on
1259class size; providing for the disclosure of the
1260performance of a charter school that is not given a school
1261grade or school improvement rating; requiring charter
1262schools to provide student assessment data to the public;
1263providing reporting requirements; providing restrictions
1264on the employment of relatives; providing an exception;
1265requiring that members of a charter school governing board
1266follow certain standards of conduct and, under specified
1267circumstances, file a disclosure of financial interests;
1268amending s. 1002.34, F.S.; providing additional duties for
1269charter technical career centers, applicants, sponsors,
1270and governing boards; requiring use of an application form
1271and an evaluation instrument; requiring applicant
1272training; requiring charter technical career centers to
1273disclose the identity of relatives of center personnel;
1274providing duties of a sponsor if a charter technical
1275career center experiences a deteriorating financial
1276condition or is in a financial emergency; providing
1277restrictions on the employment of relatives; requiring
1278monthly financial statements; requiring compliance with
1279standards of conduct and disclosure of financial
1280interests; creating s. 1002.345, F.S.; establishing
1281criteria and requirements for charter schools and charter
1282technical career centers that have a deteriorating
1283financial condition or are in a state of financial
1284emergency; establishing requirements for charter schools,
1285charter technical career centers, governing boards, and
1286sponsors; providing for corrective action and financial
1287recovery plans; providing for duties of auditors, the
1288Commissioner of Education, and the Department of
1289Education; requiring the State Board of Education to adopt
1290rules; providing grounds for termination or nonrenewal of
1291a charter; amending s. 1013.62, F.S.; expanding purposes
1292for which charter school capital outlay funds may be used;
1293providing an effective date.


CODING: Words stricken are deletions; words underlined are additions.