Senate Bill 1066c1

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    Florida Senate - 1999                           CS for SB 1066

    By the Committee on Education and Senator Sullivan





    304-2173A-99

  1                      A bill to be entitled

  2         An act relating to charter school capital

  3         outlay funding; amending s. 228.0561, F.S.;

  4         removing references to the Public Education

  5         Capital Outlay and Debt Service Trust Fund;

  6         specifying that funds appropriated for charter

  7         schools capital outlay purposes will be

  8         deposited in the General Revenue Fund; revising

  9         a provision related to school district sharing

10         of capital outlay funds with charter schools;

11         revising requirements relating to charter

12         school use of capital outlay funds; revising

13         eligibility requirements for charter school

14         receipt of capital outlay funds; removing

15         obsolete provisions; amending s. 235.42, F.S.,

16         relating to educational and ancillary plant

17         construction funds; removing a reference to

18         charter schools; providing an effective date.

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20  Be It Enacted by the Legislature of the State of Florida:

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22         Section 1.  Subsections (1), (2), (5), and (6) of

23  section 228.0561, Florida Statutes, 1998 Supplement, are

24  amended to read:

25         228.0561  Charter schools capital outlay funding.--

26         (1)  In each year in which funds are appropriated for

27  charter school capital outlay purposes from the Public

28  Education Capital Outlay and Debt Service Trust Fund for

29  charter schools, the Commissioner of Education shall allocate

30  the funds among eligible charter schools.  To be eligible for

31  a funding allocation, a charter school must meet the

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    Florida Senate - 1999                           CS for SB 1066
    304-2173A-99




  1  provisions of subsection (6), must have received final

  2  approval from its sponsor pursuant to s. 228.056 for operation

  3  during that fiscal year, and must serve students in facilities

  4  that are not provided by the charter school's sponsor, and

  5  must be fiscally stable. Fiscal stability may be documented by

  6  a statement from the school's sponsor, the school's most

  7  recent financial audit, or verification by a certified public

  8  accountant. Prior to the release of capital outlay funds to a

  9  school district on behalf of the charter school, the

10  Department of Education shall ensure that the district school

11  board and the charter school governing board enter into a

12  written agreement that includes provisions for the reversion

13  of any unencumbered funds and all equipment and property

14  purchased with public education funds to the ownership of the

15  district school board, as provided for in subsection (3)

16  attaching a lien to property that has been improved through

17  the use of these funds, in the event that the school

18  terminates operations.  Any funds recovered by the state shall

19  be deposited in the General Revenue Fund Public Education

20  Capital Outlay and Debt Service Trust Fund.  A charter school

21  is not eligible for a funding allocation if it was created by

22  the conversion of a public school and operates in facilities

23  provided by the charter school's sponsor for a nominal fee or

24  at no charge. Unless otherwise provided in the General

25  Appropriations Act, the funding allocation for each eligible

26  charter school shall be determined by multiplying the school's

27  projected student enrollment by one-thirtieth of the

28  cost-per-student station specified in s. 235.435(6)(b) for an

29  elementary, middle, or high school, as appropriate.  If the

30  funds appropriated are not sufficient, the commissioner shall

31  prorate the available funds among eligible charter schools.

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    Florida Senate - 1999                           CS for SB 1066
    304-2173A-99




  1  In the first quarter of the fiscal year, funds shall be

  2  distributed on the basis of projected enrollment as provided

  3  in this section.  The commissioner shall adjust subsequent

  4  distributions as necessary to reflect each charter school's

  5  actual student enrollment.  The commissioner shall establish

  6  the intervals and procedures for determining the projected and

  7  actual student enrollment of eligible charter schools. If a

  8  school district chooses to share funding for the capital

  9  outlay purposes described in subsection (2) with the

10  applicable charter school or charter schools, any allocation

11  of charter school capital outlay funds from the Public

12  Education Capital Outlay and Debt Service Trust Fund

13  allocation to the charter school or charter schools shall be

14  reduced by the amount shared.

15         (2)  A charter school's governing body may use charter

16  school capital outlay funds with the school board's permission

17  may use funds from the Public Education Capital Outlay and

18  Debt Service Trust Fund for any capital outlay purpose that is

19  directly related to the functioning of the charter school,

20  including the:

21         (a)  Purchase of real property.

22         (b)  Construction, renovation, repair, and maintenance

23  of school facilities.

24         (c)  Purchase, lease-purchase, or lease of permanent or

25  relocatable school facilities.

26         (d)  Purchase of vehicles to transport students to and

27  from the charter school.

28         (5)  The annual legislative budget request of the

29  Department of Education shall include a request for capital

30  outlay funding for charter schools from the Public Education

31  Capital Outlay and Debt Service Trust Fund.  The request shall

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    Florida Senate - 1999                           CS for SB 1066
    304-2173A-99




  1  be based on the projected number of students to be served in

  2  charter schools who meet the eligibility requirements of this

  3  section.

  4         (6)(a)  Effective July 1, 1998, any charter school

  5  which has been in continuous operation in the district in

  6  which its charter was approved for at least two school years

  7  immediately preceding the school year in which the school

  8  seeks an appropriation from the Public Education Capital

  9  Outlay and Debt Service Trust Fund shall be eligible to

10  receive funds from that trust fund.  No other charter schools

11  are eligible to receive funds from the Public Education

12  Capital Outlay and Debt Service Trust Fund.

13         (b)  Unless authorized otherwise by the Legislature,

14  allocation and proration of funds from the Public Education

15  Capital Outlay and Debt Service Trust Fund shall be made to

16  eligible charter schools by the Commissioner of Education in

17  an amount and in a manner authorized by subsection (1), and

18  only schools eligible for such funds in this subsection shall

19  be considered "eligible charter schools" for such an

20  allocation or proration.

21         (c)  There is appropriated from the Public Education

22  Capital Outlay and Debt Service Trust Fund in fiscal year

23  1998-1999 the amount of $5 million to be used for capital

24  outlay purposes of charter schools eligible under this

25  subsection and allocated or prorated in an amount and in a

26  manner authorized by this subsection.  This paragraph shall be

27  repealed July 1, 1999.

28         Section 2.  Subsection (7) of section 235.42, Florida

29  Statutes, 1998 Supplement, is amended to read:

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    Florida Senate - 1999                           CS for SB 1066
    304-2173A-99




  1         235.42  Educational and ancillary plant construction

  2  funds; Public Education Capital Outlay and Debt Service Trust

  3  Fund; allocation of funds.--

  4         (7)  Boards and entities authorized to participate in

  5  the trust fund are district school boards, the community

  6  college district boards of trustees, the Trustees of the

  7  Florida School for the Deaf and the Blind, the Board of

  8  Regents, charter schools only if eligible pursuant to s.

  9  228.0561(6), and other units of the state system of public

10  education, and other educational entities defined in s.

11  228.041 for which funds are authorized by the Legislature.

12         Section 3.  This act shall take effect July 1, 1999.

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14          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
15                             SB 1066

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17  The committee substitute expands the eligibility criteria for
    charter school capital outlay funding by requiring evidence of
18  fiscal stability.  It deletes the required lien on property
    improved by charter school capital outlay and requires a
19  written agreement for reversion of unencumbered funds and
    certain equipment and property to the district school board
20  when a charter is terminated or not renewed.  Charter schools
    are removed for the list of entities that may receive funds
21  from the Public Education Capital Outlay and Debt Service
    Trust Fund.
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