HB 1279 2003
1	A bill to be entitled
2	An act relating to charter schools; amending s. 1002.33,
3	F.S.; providing guiding principles; requiring an emphasis
4	on reading; authorizing a state university or community
5	college to sponsor a charter school; requiring certain
6	accountability measures; revising application
7	requirements; requiring fiscal projections in a charter
8	application; extending the time allowed for the State
9	Board of Education to act on an appeal; requiring auditors
10	to provide notification of certain financial conditions;
11	providing additional requirements for a charter school’s
12	annual report; eliminating limitations on the number of
13	charter schools per school district; creating the Charter
14	School Accountability and Funding Authority and providing
15	purpose, composition, and duties; eliminating a review
16	panel; revising provisions relating to the analysis of
17	charter school performance; amending s. 1002.32, F.S.;
18	correcting cross references; amending s. 1013.62, F.S.;
19	requiring the Charter School Accountability and Funding
20	Authority to recommend allocations of capital outlay funds
21	to charter schools; providing priorities; eliminating a
22	formula for providing allocations; providing an effective
23	date.
24
25	WHEREAS, in the 2002-2003 school year, Florida has 223
26	charter schools educating approximately 51,000 Florida students,
27	with a projected increase of 117 additional charter schools in
28	the next school year, and
29	WHEREAS, this rate of growth is a dramatic increase over
30	the prior averages of 36 charter schools per year, and
31	WHEREAS, while charter schools are public schools, their
32	unique populations or small size mean that few of them are
33	eligible for inclusion in the state’s accountability system,
34	with only 38 of the 173 charter schools receiving a school
35	performance grade in 2002, and
36	WHEREAS, the issue of charter school accountability is of
37	the utmost importance at this time of budget constraints and
38	heightened awareness of public ethics, NOW, THEREFORE,
39
40	Be It Enacted by the Legislature of the State of Florida:
41
42	Section 1. Subsections (2), (5), (6), (7), (8), (9), (13),
43	(23), and (24) of section 1002.33, Florida Statutes, are amended
44	to read:
45	1002.33 Charter schools.--
46	(2) GUIDING PRINCIPLES;PURPOSE.--
47	(a) Charter schools in Florida shall be guided by the
48	following principles:
49	1. Meet high standards of student achievement while
50	providing parents flexibility to choose among diverse
51	educational opportunities within the state’s public school
52	system.
53	2. Promote enhanced academic success and financial
54	efficiency by aligning responsibility with accountability.
55	3. Provide parents with sufficient information on whether
56	their child is reading at grade level and whether the child
57	gains at least a year’s worth of learning for every year spent
58	in the charter school.
59	(b)(a)Charter schools shall fulfill the following
60	purposes:
61	1. Improve student learning and academic achievement.
62	2. Increase learning opportunities for all students, with
63	special emphasis on low-performing students and reading.
64	3. Create new professional opportunities for teachers,
65	including ownership of the learning program at the school site.
66	4. Encourage the use of innovative learning methods.
67	5. Require the measurement of learning outcomes.
68	(c)(b)Charter schools may fulfill the following purposes:
69	1. Create innovative measurement tools.
70	2. Provide rigorous competition within the public school
71	district to stimulate continual improvement in all public
72	schools.
73	3. Expand the capacity of the public school system.
74	(5) SPONSOR.--
75	(a) A district school board may sponsor a charter school
76	in the county over which the district school board has
77	jurisdiction.
78	(b) A community college may sponsor a charter school,
79	within each community college district, on its own or in
80	partnership with an independent postsecondary educational
81	institution.
82	(c)(b)A state university may sponsor a charter school on
83	its own or in partnership with an independent postsecondary
84	educational institution.A state university may grant a charter
85	to a lab school created under s. 1002.32 and shall be considered
86	to be the school's sponsor. Such school shall be considered a
87	charter lab school.
88	(d) If a state university or a community college sponsors
89	a charter school that offers secondary education, it must
90	provide an option to receive an associate degree.
91	(e)(c)The sponsor shall monitor and review the charter
92	school in its progress toward the goals established in the
93	charter.
94	(f)(d)The sponsor shall monitor the revenues and
95	expenditures of the charter school.
96	(g)(e)The sponsor may approve a charter for a charter
97	school before the applicant has secured space, equipment, or
98	personnel, if the applicant indicates approval is necessary for
99	it to raise working capital.
100	(h)(f)The sponsor's policies shall not apply to a charter
101	school.
102	(i)(g)A sponsor shall ensure that the charter is
103	innovative and consistent with the state education goals
104	established by s. 1000.03(5).
105	(j) The sponsor shall ensure that the charter school
106	participates in the state’s education accountability system and
107	shall use appropriate interventions and sanctions if a charter
108	school falls short of performance measures included in the
109	approved charter.
110	(6) APPLICATION PROCESS AND REVIEW.--Beginning September
111	1, 2003, applications are subject to the following requirements:
112	(a) A person or entity wishing to open a charter school
113	shall prepare an application that:
114	1. Demonstrates how the school will use the guiding
115	principles and meet the statutorily defined purpose of a charter
116	school.
117	2. Provides a detailed curriculum plan that illustrates
118	how students will be provided services to attain the Sunshine
119	State Standards.
120	3. Contains goals and objectives for improving student
121	learning and measuring that improvement. These goals and
122	objectives must indicate how much academic improvement students
123	are expected to show each year, how success will be evaluated,
124	and the specific results to be attained through instruction.
125	4. Describes the reading curriculum and differentiated
126	strategies that will be used for students reading at grade level
127	or higher and a separate curriculum and strategies for students
128	who are reading below grade level. A sponsor shall deny a
129	charter if the school does not propose a reading curriculum that
130	is consistent with effective teaching strategies that are
131	grounded in scientifically based reading research.
132	5. Contains an annual financial plan for each year
133	requested by the charter for operation of the school for up to 5
134	years. This plan must contain anticipated fund balances based on
135	revenue projections, a spending plan based on projected revenues
136	and expenses, and a description of controls that will safeguard
137	finances and projected enrollment trends.
138	(b)(a) A district school board, university board of
139	trustees, or community college board of trusteesshall receive
140	and review all applications for a charter school. The sponsorA
141	district school boardshall receive and consider charter school
142	applications received on or before October 1 of each calendar
143	year for charter schools to be opened at the beginning of the
144	school district's next school year, or to be opened at a time
145	agreed to by the applicant and the sponsordistrict school
146	board. A sponsordistrict school boardmay receive applications
147	later than this date if it chooses. A sponsor may not charge an
148	applicant for a charter any fee for the processing or
149	consideration of an application, and a sponsor may not base its
150	consideration or approval of an application upon the promise of
151	future payment of any kind.
152	1. In order to facilitate an accurate budget projection
153	process, a district school board shall be held harmless for FTE
154	students who are not included in the FTE projection due to
155	approval of charter school applications after the FTE projection
156	deadline. In a further effort to facilitate an accurate budget
157	projection, within 15 calendar days after receipt of a charter
158	school application, a district school board or other sponsor
159	shall report to the Department of Education the name of the
160	applicant entity, the proposed charter school location, and its
161	projected FTE.
162	2. In order to ensure fiscal responsibility, an
163	application for a charter school shall include a full accounting
164	of expected assets, a projection of expected sources and amounts
165	of income, including income derived from projected student
166	enrollments and from community support, and an expense
167	projection that includes full accounting of the costs of
168	operation, including start-up costs.
169	3.2.The sponsorA district school boardshall by a
170	majority vote approve or deny an application no later than 60
171	calendar days after the application is received, unless the
172	sponsordistrict school boardand the applicant mutually agree
173	to temporarily postpone the vote to a specific date, at which
174	time the sponsordistrict school boardshall by a majority vote
175	approve or deny the application. If the sponsordistrict school
176	boardfails to act on the application, an applicant may appeal
177	to the State Board of Education as provided in paragraph (c)(b).
178	If an application is denied, the sponsordistrict school board
179	shall, within 10 calendar days, articulate in writing the
180	specific reasons based upon good cause supporting its denial of
181	the charter application.
182	4.3.For budget projection purposes, the district school
183	board or other sponsor shall report to the Department of
184	Education the approval or denial of a charter application within
185	10 calendar days after such approval or denial. In the event of
186	approval, the report to the Department of Education shall
187	include the final projected FTE for the approved charter school.
188	5.4.Upon approval of a charter application, the initial
189	startup shall commence with the beginning of the public school
190	calendar for the district in which the charter is granted unless
191	the sponsordistrict school boardallows a waiver of this
192	provision for good cause.
193	(c)(b)An applicant may appeal any denial of that
194	applicant's application or failure to act on an application to
195	the State Board of Education no later than 30 calendar days
196	after receipt of the sponsor'sdistrict school board'sdecision
197	or failure to act and shall notify the sponsordistrict school
198	board of its appeal. Any response by the sponsorof the district
199	school boardshall be submitted to the State Board of Education
200	within 30 calendar days after notification of the appeal. Upon
201	receipt of notification from the State Board of Education that a
202	charter school applicant is filing an appeal, the Commissioner
203	of Education shall convene a meeting of the Charter School
204	Appeal Commission to study and make recommendations to the State
205	Board of Education regarding its pending decision about the
206	appeal. The commission shall forward its recommendation to the
207	state board no later than 7 calendar days prior to the date on
208	which the appeal is to be heard. The State Board of Education
209	shall by majority vote accept or reject the decision of the
210	sponsordistrict school board no later than 9060calendar days
211	after an appeal is filed in accordance with State Board of
212	Education rule. The Charter School Appeal Commission may reject
213	an appeal submission for failure to comply with procedural rules
214	governing the appeals process. The rejection shall describe the
215	submission errors. The appellant may have up to 15 calendar days
216	from notice of rejection to resubmit an appeal that meets
217	requirements of State Board of Education rule. An application
218	for appeal submitted subsequent to such rejection shall be
219	considered timely if the original appeal was filed within 30
220	calendar days after receipt of notice of the specific reasons
221	for the district school board'sdenial of the charter
222	application. The State Board of Education shall remand the
223	application to the sponsordistrict school boardwith its
224	written decision that the sponsordistrict school boardapprove
225	or deny the application. The sponsordistrict school boardshall
226	implement the decision of the State Board of Education. The
227	decision of the State Board of Education is not subject to the
228	provisions of the Administrative Procedure Act, chapter 120.
229	(d)(c) The sponsordistrict school boardshall act upon
230	the decision of the State Board of Education within 30 calendar
231	days after it is received. The State Board of Education's
232	decision is a final action subject to judicial review.
233	(e)(d)1. A Charter School Appeal Commission is established
234	to assist the commissioner and the State Board of Education with
235	a fair and impartial review of appeals by applicants whose
236	charters have been denied or whose charter contracts have not
237	been renewed by their sponsors.
238	2. The Charter School Appeal Commission may receive copies
239	of the appeal documents forwarded to the State Board of
240	Education, review the documents, gather other applicable
241	information regarding the appeal, and make a written
242	recommendation to the commissioner. The recommendation must
243	state whether the appeal should be upheld or denied and include
244	the reasons for the recommendation being offered. The
245	commissioner shall forward the recommendation to the State Board
246	of Education no later than 7 calendar days prior to the date on
247	which the appeal is to be heard. The state board must consider
248	the commission's recommendation in making its decision, but is
249	not bound by the recommendation. The decision of the Charter
250	School Appeal Commission is not subject to the provisions of the
251	Administrative Procedure Act, chapter 120.
252	3. The commissioner shall appoint the members of the
253	Charter School Appeal Commission. Members shall serve without
254	compensation but may be reimbursed for travel and per diem
255	expenses in conjunction with their service. One-half of the
256	members must represent currently operating charter schools, and
257	one-half of the members must represent school districts. The
258	commissioner or a named designee shall chair the Charter School
259	Appeal Commission.
260	4. The chair shall convene meetings of the commission and
261	shall ensure that the written recommendations are completed and
262	forwarded in a timely manner. In cases where the commission
263	cannot reach a decision, the chair shall make the written
264	recommendation with justification, noting that the decision was
265	rendered by the chair.
266	5. Commission members shall thoroughly review the
267	materials presented to them from the appellant and the sponsor.
268	The commission may request information to clarify the
269	documentation presented to it. In the course of its review, the
270	commission may facilitate the postponement of an appeal in those
271	cases where additional time and communication may negate the
272	need for a formal appeal and both parties agree, in writing, to
273	postpone the appeal to the State Board of Education. A new date
274	certain for the appeal shall then be set based upon the rules
275	and procedures of the State Board of Education. Commission
276	members shall provide a written recommendation to the state
277	board as to whether the appeal should be upheld or denied. A
278	fact-based justification for the recommendation must be
279	included. The chair must ensure that the written recommendation
280	is submitted to the State Board of Education members no later
281	than 7 calendar days prior to the date on which the appeal is to
282	be heard. Both parties in the case shall also be provided a copy
283	of the recommendation.
284	(f)(e)The Department of Education may provide technical
285	assistance to an applicant upon written request.
286	(g)(f)In considering charter applications for a lab
287	school, a state university shall consult with the district
288	school board of the county in which the lab school is located.
289	The decision of a state university may be appealed pursuant to
290	the procedure established in this subsection.
291	(h) Prior to approving a charter, a state university or
292	community college board of trustees shall consult with the
293	district school board of the county in which the charter school
294	is to be located.
295	(i)(g)The terms and conditions for the operation of a
296	charter school shall be set forth by the sponsor and the
297	applicant in a written contractual agreement, called a charter.
298	The sponsor shall not impose unreasonable rules or regulations
299	that violate the intent of giving charter schools greater
300	flexibility to meet educational goals. The applicant and sponsor
301	shall have 6 months in which to mutually agree to the provisions
302	of the charter. The Department of Education shall provide
303	mediation services for any dispute regarding this section
304	subsequent to the approval of a charter application and for any
305	dispute relating to the approved charter, except disputes
306	regarding charter school application denials. If the
307	Commissioner of Education determines that the dispute cannot be
308	settled through mediation, the dispute may be appealed to an
309	administrative law judge appointed by the Division of
310	Administrative Hearings. The administrative law judge may rule
311	on issues of equitable treatment of the charter school as a
312	public school, whether proposed provisions of the charter
313	violate the intended flexibility granted charter schools by
314	statute, or on any other matter regarding this section except a
315	charter school application denial, and shall award the
316	prevailing party reasonable attorney's fees and costs incurred
317	to be paid by the losing party. The costs of the administrative
318	hearing shall be paid by the party whom the administrative law
319	judge rules against.
320	(7) CHARTER.--The major issues involving the operation of
321	a charter school shall be considered in advance and written into
322	the charter. The charter shall be signed by the governing body
323	of the charter school and the sponsor, following a public
324	hearing to ensure community input.
325	(a) The charter shall address, and criteria for approval
326	of the charter shall be based on:
327	1. The school's mission, the students to be served, and
328	the ages and grades to be included.
329	2. The focus of the curriculum, the instructional methods
330	to be used, any distinctive instructional techniques to be
331	employed, and identification and acquisition of appropriate
332	technologies needed to improve educational and administrative
333	performance which include a means for promoting safe, ethical,
334	and appropriate uses of technology which comply with legal and
335	professional standards. The charter shall ensure that reading is
336	a primary focus of the curriculum and that resources are
337	provided to identify and provide specialized instruction for
338	students who are reading below grade level. The curriculum and
339	instructional strategies for reading must be consistent with the
340	Sunshine State Standards and grounded in scientifically based
341	reading research.
342	3. The current incoming baseline standard of student
343	academic achievement, the outcomes to be achieved, and the
344	method of measurement that will be used. The criteria listed in
345	this subparagraph shall include a detailed description for each
346	of the following:
347	a. How the baseline student academic achievement levels
348	and prior rates of academic progress will be established.
349	b. How these baseline rates will be compared to rates of
350	academic progress achieved by these same students while
351	attending the charter school.
352	c. To the extent possible, how these rates of progress
353	will be evaluated and compared with rates of progress of other
354	closely comparable student populations.
355
356	The district school board is required to provide academic
357	student performance data to charter schools for each of their
358	students coming from the district school system, as well as
359	rates of academic progress of comparable student populations in
360	the district school system.
361	4. The methods used to identify the educational strengths
362	and needs of students and how well educational goals and
363	performance standards are met by students attending the charter
364	school. Included in the methods is a means for the charter
365	school to ensure accountability to its constituents by analyzing
366	student performance data and by evaluating the effectiveness and
367	efficiency of its major educational programs. Students in
368	charter schools shall, at a minimum, participate in the
369	statewide assessment program created under s. 1008.22.
370	5. In secondary charter schools, a method for determining
371	that a student has satisfied the requirements for graduation in
372	s. 1003.43.
373	6. A method for resolving conflicts between the governing
374	body of the charter school and the sponsor.
375	7. The admissions procedures and dismissal procedures,
376	including the school's code of student conduct.
377	8. The ways by which the school will achieve a
378	racial/ethnic balance reflective of the community it serves or
379	within the racial/ethnic range of other public schools in the
380	same school district.
381	9. The financial and administrative management of the
382	school, including a reasonable demonstration of the professional
383	experience or competence of those individuals or organizations
384	applying to operate the charter school or those hired or
385	retained to perform such professional services and the
386	description of clearly delineated responsibilities and the
387	policies and practices needed to effectively manage the charter
388	school. A description of internal audit procedures and
389	establishment of controls to ensure that financial resources are
390	properly managed must be included. Both public sector and
391	private sector professional experience shall be equally valid in
392	such a consideration.
393	10. The asset and liability projections required in the
394	application which are incorporated into the charter and shall be
395	compared with information provided in the annual report of the
396	charter school. The charter shall ensure that, if a charter
397	school internal audit reveals a deficit financial position, the
398	auditors are required to notify the charter school governing
399	board, the sponsor, and the Department of Education.
400	11.10.A description of procedures that identify various
401	risks and provide for a comprehensive approach to reduce the
402	impact of losses; plans to ensure the safety and security of
403	students and staff; plans to identify, minimize, and protect
404	others from violent or disruptive student behavior; and the
405	manner in which the school will be insured, including whether or
406	not the school will be required to have liability insurance,
407	and, if so, the terms and conditions thereof and the amounts of
408	coverage.
409	12.11.The term of the charter which shall provide for
410	cancellation of the charter if insufficient progress has been
411	made in attaining the student achievement objectives of the
412	charter and if it is not likely that such objectives can be
413	achieved before expiration of the charter. The initial term of a
414	charter shall be for 3, 4, or 5 years. In order to facilitate
415	access to long-term financial resources for charter school
416	construction, charter schools that are operated by a
417	municipality or other public entity as provided by law are
418	eligible for up to a 15-year charter, subject to approval by the
419	sponsordistrict school board. A charter lab school is eligible
420	for a charter for a term of up to 15 years. In addition, to
421	facilitate access to long-term financial resources for charter
422	school construction, charter schools that are operated by a
423	private, not-for-profit, s. 501(c)(3) status corporation are
424	eligible for up to a 10-year charter, subject to approval by the
425	sponsordistrict school board. Such long-term charters remain
426	subject to annual review and may be terminated during the term
427	of the charter, but only for specific good cause according to
428	the provisions set forth in subsection (8).
429	13.12.The facilities to be used and their location.
430	14.13.The qualifications to be required of the teachers
431	and the potential strategies used to recruit, hire, train, and
432	retain qualified staff to achieve best value.
433	15.14.The governance structure of the school, including
434	the status of the charter school as a public or private employer
435	as required in paragraph (12)(i).
436	16.15.A timetable for implementing the charter which
437	addresses the implementation of each element thereof and the
438	date by which the charter shall be awarded in order to meet this
439	timetable.
440	17.16.In the case of an existing public school being
441	converted to charter status, alternative arrangements for
442	current students who choose not to attend the charter school and
443	for current teachers who choose not to teach in the charter
444	school after conversion in accordance with the existing
445	collective bargaining agreement or district school board rule in
446	the absence of a collective bargaining agreement. However,
447	alternative arrangements shall not be required for current
448	teachers who choose not to teach in a charter lab school, except
449	as authorized by the employment policies of the state university
450	which grants the charter to the lab school.
451	(b) A charter may be renewed every 5 school years,
452	provided that a program review demonstrates that the criteria in
453	paragraph (a) have been successfully accomplished and that none
454	of the grounds for nonrenewal established by paragraph (8)(a)
455	has been documented. In order to facilitate long-term financing
456	for charter school construction, charter schools operating for a
457	minimum of 2 years and demonstrating exemplary academic
458	programming and fiscal management are eligible for a 15-year
459	charter renewal. Such long-term charter is subject to annual
460	review and may be terminated during the term of the charter.
461	(c) A charter may be modified during its initial term or
462	any renewal term upon the recommendation of the sponsor or the
463	charter school governing board and the approval of both parties
464	to the agreement.
465	(8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
466	(a) At the end of the term of a charter, the sponsor may
467	choose not to renew the charter for any of the following
468	grounds:
469	1. Failure to participate in the state's education
470	accountability system created in s. 1008.31, as required in this
471	section, or failure tomeet the requirements for student
472	performance stated in the charter.
473	2. Failure to meet generally accepted standards of fiscal
474	management.
475	3. Violation of law.
476	4. Other good cause shown.
477	(b) During the term of a charter, the sponsor may
478	terminate the charter for any of the grounds listed in paragraph
479	(a).
480	(c) At least 90 days prior to renewing or terminating a
481	charter, the sponsor shall notify the governing body of the
482	school of the proposed action in writing. The notice shall state
483	in reasonable detail the grounds for the proposed action and
484	stipulate that the school's governing body may, within 14
485	calendar days after receiving the notice, request an informal
486	hearing before the sponsor. The sponsor shall conduct the
487	informal hearing within 30 calendar days after receiving a
488	written request. The charter school's governing body may, within
489	14 calendar days after receiving the sponsor's decision to
490	terminate or refuse to renew the charter, appeal the decision
491	pursuant to the procedure established in subsection (6).
492	(d) A charter may be terminated immediately if the sponsor
493	determines that good cause has been shown or if the health,
494	safety, or welfare of the students is threatened. The school
495	district in which the charter school is located shall assume
496	operation of the school under these circumstances. The charter
497	school's governing board may, within 14 days after receiving the
498	sponsor's decision to terminate the charter, appeal the decision
499	pursuant to the procedure established in subsection (6).
500	(e) When a charter is not renewed or is terminated, the
501	school shall be dissolved under the provisions of law under
502	which the school was organized, and any unencumbered public
503	funds from the charter school shall revert to the district
504	school board. In the event a charter school is dissolved or is
505	otherwise terminated, all district school board property and
506	improvements, furnishings, and equipment purchased with public
507	funds shall automatically revert to full ownership by the
508	district school board, subject to complete satisfaction of any
509	lawful liens or encumbrances. Any unencumbered public funds from
510	the charter school, district school board property and
511	improvements, furnishings, and equipment purchased with public
512	funds, or financial or other records pertaining to the charter
513	school, in the possession of any person, entity, or holding
514	company, other than the charter school, shall be held in trust
515	upon the district school board's request, until any appeal
516	status is resolved.
517	(f) If a charter is not renewed or is terminated, the
518	charter school is responsible for all debts of the charter
519	school. The district may not assume the debt from any contract
520	for services made between the governing body of the school and a
521	third party, except for a debt that is previously detailed and
522	agreed upon in writing by both the district and the governing
523	body of the school and that may not reasonably be assumed to
524	have been satisfied by the district.
525	(g) If a charter is not renewed or is terminated, a
526	student who attended the school may apply to, and shall be
527	enrolled in, another public school. Normal application deadlines
528	shall be disregarded under such circumstances.
529	(9) CHARTER SCHOOL REQUIREMENTS.--
530	(a) A charter school shall be nonsectarian in its
531	programs, admission policies, employment practices, and
532	operations.
533	(b) A charter school shall admit students as provided in
534	subsection (10).
535	(c) A charter school shall be accountable to its sponsor
536	for performance as provided in subsection (7).
537	(d) A charter school shall not charge tuition or
538	registration fees, except those fees normally charged by other
539	public schools. However, a charter lab school may charge a
540	student activity and service fee as authorized by s. 1002.32(5).
541	(e) A charter school shall meet all applicable state and
542	local health, safety, and civil rights requirements.
543	(f) A charter school shall not violate the
544	antidiscrimination provisions of s. 1000.05.
545	(g) A charter school shall provide for an annual financial
546	audit in accordance with s. 218.39.
547	(h) No organization shall hold more than 15 charters
548	statewide.
549	(i) In order to provide financial information that is
550	comparable to that reported for other public schools, charter
551	schools are to maintain all financial records which constitute
552	their accounting system:
553	1. In accordance with the accounts and codes prescribed in
554	the most recent issuance of the publication titled "Financial
555	and Program Cost Accounting and Reporting for Florida Schools";
556	or
557	2. At the discretion of the charter school governing
558	board, a charter school may elect to follow generally accepted
559	accounting standards for not-for-profit organizations, but must
560	reformat this information for reporting according to this
561	paragraph.
562
563	Charter schools are to provide annual financial report and
564	program cost report information in the state-required formats
565	for inclusion in district reporting in compliance with s.
566	1011.60(1). Charter schools that are operated by a municipality
567	or are a component unit of a parent nonprofit organization may
568	use the accounting system of the municipality or the parent but
569	must reformat this information for reporting according to this
570	paragraph.
571	(j) The governing board of the charter school shall
572	annually adopt and maintain an operating budget.
573	(k) The governing body of the charter school shall
574	exercise continuing oversight over charter school operations.
575	and make annual progress reports to its sponsor, which upon
576	verification shall be forwarded to the Commissioner of Education
577	at the same time as other annual school accountability reports.
578	The report shall contain at least the following information:
579	(l) The governing body of the charter school shall report
580	its progress annually to its sponsor, which shall verify and
581	forward the report to the Commissioner of Education at the same
582	time as other annual school accountability reports. The
583	Department of Education shall consult with the Charter School
584	Accountability and Funding Authority to provide suggested
585	guidelines and a format or template for the annual report. The
586	department shall include in its compilation a notation that the
587	school failed to file its report by the established deadline.
588	The guidelines shall include at least the following components:
589	1. Student achievement performance data, including the
590	information required for the annual school report and the
591	education accountability system governed by ss. 1008.31 and
592	1008.345. Charter schools are subject to the same accountability
593	requirements as other public schools, including reports of
594	student achievement information that links baseline student data
595	to the school’s performance projections identified in the
596	charter. The charter school shall identify reasons for any
597	difference between projected and actual student performanceThe
598	charter school's progress toward achieving the goals outlined in
599	its charter.
600	2. Financial status of the charter school, according to
601	guidelines recommended by the Charter School Accountability and
602	Funding Authority and provided by the Department of Education.
603	The guidelines must include revenues and expenditures at a level
604	of detail that allows for analysis of the ability to meet
605	financial obligations and timely repayment of debtThe
606	information required in the annual school report pursuant to s.
607	1008.345.
608	3. Documentation of the facilities in current use and any
609	planned facilities for use by the charter school for instruction
610	of students, administrative functions, or investment purposes
611	Financial records of the charter school, including revenues and
612	expenditures.
613	4. Descriptive information about the charter school's
614	personnel, includingsalary and benefit levels of charter school
615	employees and the proportion of instructional personnel who hold
616	professional or temporary certificates.
617	(m)(l)A charter school shall not levy taxes or issue
618	bonds secured by tax revenues.
619	(n)(m)A charter school shall provide instruction for at
620	least the number of days required by law for other public
621	schools, and may provide instruction for additional days.
622	(13) NUMBER OF SCHOOLS.--There shall be no limitation on
623	the number of newly created charter schools that may be
624	authorized in any county. Any district school board policy that
625	seeks to limit the number of newly created charter schools shall
626	be subject to review and approval by the State Board of
627	Education prior to its taking effect.
628	(a) The number of newly created charter schools is limited
629	to no more than 28 in each school district that has 100,000 or
630	more students, no more than 20 in each school district that has
631	50,000 to 99,999 students, and no more than 12 in each school
632	district with fewer than 50,000 students.
633	(b) An existing public school which converts to a charter
634	school shall not be counted toward the limit established by
635	paragraph (a).
636	(c) Notwithstanding any limit established by this
637	subsection, a district school board or a charter school
638	applicant shall have the right to request an increase of the
639	limit on the number of charter schools authorized to be
640	established within the district from the State Board of
641	Education.
642	(d) Whenever a municipality has submitted charter
643	applications for the establishment of a charter school feeder
644	pattern (elementary, middle, and senior high schools), and upon
645	approval of each individual charter application by the district
646	school board, such applications shall then be designated as one
647	charter school for all purposes listed pursuant to this section.
648	(23) CHARTER SCHOOL ACCOUNTABILITY AND FUNDING AUTHORITY;
649	CHARTER SCHOOL REVIEW PANEL ANDLEGISLATIVE REVIEW.--
650	(a) The Department of Education shall regularly convene a
651	Charter School Accountability and Funding AuthorityReview Panel
652	in order to evaluate performance accountability of charter
653	schools and oversee funding as required by s. 1013.62review
654	issues, practices, and policies regarding charter schools.
655	1. The composition of the authorityreview panelshall
656	include individuals with experience in finance, administration,
657	law, education, and school governance, and individuals familiar
658	with charter school construction and operation. No current
659	charter school operator or sponsor shall be a member of the
660	authority. The panel shall include two appointees each from the
661	Commissioner of Education, the President of the Senate, and the
662	Speaker of the House of Representatives. The Governor shall
663	appoint three members of the authoritypanel and shall annually
664	designate the chair. The members of the authority shall serve 3-
665	year staggered terms and shall be eligible for reappointment
666	Each member of the panel shall serve a 1-year term, unless
667	renewed by the office making the appointment.
668	2. The Charter School Accountability and Funding Authority
669	panel shall make recommendations to the Legislature, to the
670	State BoardDepartmentof Education, to charter schools, and to
671	school districts onfor improving charter school operations,and
672	oversight and for ensuring best business practices atand fair
673	business relationships, and distributing facilities fundingwith
674	charter schools.
675	3. Annually, the Charter School Accountability and Funding
676	Authority shall recommend an allocation for charter schools
677	facilities funding as required by s. 1013.62. Charter schools
678	are not eligible for facilities funding unless they have been in
679	operation for 3 or more years. The authority shall determine the
680	priorities based on an analysis of the charter school’s previous
681	3 years of operation and shall use at least the following
682	criteria:
683	a. The charter school’s need for permanent construction
684	related to the size and mission of the school.
685	b. The financial stability of the charter school,
686	including any multiyear funding commitments.
687	c. Parental satisfaction.
688	d. Improved student performance.
689	e. Other appropriate accountability and performance data.
690	(b) The Legislature shall review the operation of charter
691	schools during the 2005 Regular Session of the Legislature.
692	(24) ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
693	of the annual report required by paragraph (9)(l)(9)(k), the
694	Department of Education shall provide to the State Board of
695	Education, the Commissioner of Education, the Governor,the
696	President of the Senate, andthe Speaker of the House of
697	Representatives, and the Charter School Accountability and
698	Funding Authorityan analysis and comparison of the overall
699	performance of charter school students, to include all students
700	whose scores are counted as part of the statewide assessment
701	program, versus comparable public school students in the
702	district as determined by the statewide assessment program
703	currently administered in the school district, and other
704	assessments administered pursuant to s. 1008.22(3). If a charter
705	school is required to prepare a performance improvement plan,
706	the Department of Education shall immediately report that
707	charter school to the Charter School Accountability and Funding
708	Authority.
709	Section 2. Subsection (2) and paragraph (h) of subsection
710	(9) of section 1002.32, Florida Statutes, are amended to read:
711	1002.32 Developmental research (laboratory) schools.--
712	(2) ESTABLISHMENT.--There is established a category of
713	public schools to be known as developmental research
714	(laboratory) schools (lab schools). Each lab school shall
715	provide sequential instruction and shall be affiliated with the
716	college of education within the state university of closest
717	geographic proximity. A lab school to which a charter has been
718	issued under s. 1002.33(5)(c)(5)(b)must be affiliated with the
719	college of education within the state university that issued the
720	charter, but is not subject to the requirement that the state
721	university be of closest geographic proximity. For the purpose
722	of state funding, Florida Agricultural and Mechanical
723	University, Florida Atlantic University, Florida State
724	University, the University of Florida, and other universities
725	approved by the State Board of Education and the Legislature are
726	authorized to sponsor one or more lab schools.
727	(9) FUNDING.--Funding for a lab school, including a
728	charter lab school, shall be provided as follows:
729	(h) A lab school to which a charter has been issued under
730	s. 1002.33(5)(c)(5)(b)is eligible to receive funding for
731	charter school capital outlay if it meets the eligibility
732	requirements of s. 1013.62. If the lab school receives funds
733	from charter school capital outlay, the school shall receive
734	capital outlay funds otherwise provided in this subsection only
735	to the extent that funds allocated pursuant to s. 1013.62 are
736	insufficient to provide capital outlay funds to the lab school
737	at one-fifteenth of the cost per student station.
738	Section 3. Section 1013.62, Florida Statutes, is amended
739	to read:
740	1013.62 Charter schools capital outlay funding.--
741	(1) In each year in which funds are appropriated for
742	charter school capital outlay purposes, the Commissioner of
743	Education shall allocate the funds among eligiblecharter
744	schools. The commissioner shall allocate the funds based on
745	recommendations provided by the Charter School Accountability
746	and Funding Authority.To be eligible for a funding allocation,
747	a charter school must meet the provisions of subsection (6),
748	must have received final approval from its sponsor pursuant to
749	s. 1002.33 for operation during that fiscal year, and must serve
750	students in facilities that are not provided by the charter
751	school's sponsor. Prior to the release of capital outlay funds
752	to a school district on behalf of the charter school, the
753	Department of Education shall ensure that the charter school
754	sponsordistrict school boardand the charter school governing
755	board enter into a written agreement that includes provisions
756	for the reversion of any unencumbered funds and all equipment
757	and property purchased with public education funds to the
758	ownership of the sponsordistrict school board, as provided for
759	in subsection (3), in the event that the school terminates
760	operations. Any funds recovered by the state shall be deposited
761	in the General Revenue Fund. A charter school is not eligible
762	for a funding allocation if it was created by the conversion of
763	a public school and operates in facilities provided by the
764	charter school's sponsor for a nominal fee or at no charge or if
765	it is directly or indirectly operated by the school district.
766	Unless otherwise provided in the General Appropriations Act, the
767	funding allocation for each eligible charter school shall be
768	determined by multiplying the school's projected student
769	enrollment by one-fifteenth of the cost-per-student station
770	specified in s. 1013.64(6)(b) for an elementary, middle, or high
771	school, as appropriate. If the funds appropriated are not
772	sufficient, the commissioner shall prorate the available funds
773	among eligible charter schools. Funds shall be distributed on
774	the basis of the capital outlay full-time equivalent membership
775	by grade level, which shall be calculated by averaging the
776	results of the second and third enrollment surveys.The
777	Department of Education shall distribute capital outlay funds
778	monthly, beginning in the first quarter of the fiscal year,
779	based on one-twelfth of the amount the department reasonably
780	expects the charter school to receive during that fiscal year.
781	The commissioner shall adjust subsequent distributions as
782	necessary to reflect each charter school's actual student
783	enrollment as reflected in the second and third enrollment
784	surveys. The commissioner shall establish the intervals and
785	procedures for determining the projected and actual student
786	enrollment of eligible charter schools.
787	(2) Annually, the Charter School Accountability and
788	Funding Authority shall recommend an allocation for charter
789	schools facilities funding as required by this section. Charter
790	schools are not eligible for facilities funding unless they have
791	been in operation for 3 or more years. The authority shall
792	determine the priorities based on an analysis of the charter
793	school’s previous 3 years of operation and shall use at least
794	the following criteria:
795	(a) The charter school’s need for permanent construction
796	related to the size and mission of the school.
797	(b) The financial stability of the charter school,
798	including any multiyear funding commitments.
799	(c) Parental satisfaction.
800	(d) Improved student performance.
801	(e) Other appropriate accountability and performance data.
802	(3)(2)A charter school's governing body may use charter
803	school capital outlay funds for any capital outlay purpose that
804	is directly related to the functioning of the charter school,
805	including the:
806	(a) Purchase of real property.
807	(b) Construction, renovation, repair, and maintenance of
808	school facilities.
809	(c) Purchase, lease-purchase, or lease of permanent or
810	relocatable school facilities.
811	(d) Purchase of vehicles to transport students to and from
812	the charter school.
813	(4)(3)When a charter school is nonrenewed or terminated,
814	any unencumbered funds and all equipment and property purchased
815	with district public funds shall revert to the ownership of the
816	district school board, as provided for in s. 1002.33(8)(e) and
817	(f). In the case of a charter school operated by a state
818	university or a community college, or a charterlab school, any
819	unencumbered funds and all equipment and property purchased with
820	that institution'suniversitypublic funds shall revert to the
821	ownership of the institutionstate universitythat issued the
822	charter. The reversion of such equipment, property, and
823	furnishings shall focus on recoverable assets, but not on
824	intangible or irrecoverable costs such as rental or leasing
825	fees, normal maintenance, and limited renovations. The reversion
826	of all property secured with public funds is subject to the
827	complete satisfaction of all lawful liens or encumbrances. If
828	there are additional local issues such as the shared use of
829	facilities or partial ownership of facilities or property, these
830	issues shall be agreed to in the charter contract prior to the
831	expenditure of funds.
832	(5)(4)The Commissioner of Education shall specify
833	procedures for submitting and approving requests for funding
834	under this section and procedures for documenting expenditures.
835	(6)(5)The annual legislative budget request of the
836	Department of Education shall include a request for capital
837	outlay funding for charter schools. The request shall be based
838	on the projected number of students to be served in charter
839	schools who meet the eligibility requirements of this section. A
840	dedicated funding source, if identified in writing by the
841	Commissioner of Education and submitted along with the annual
842	charter school legislative budget request, may be considered an
843	additional source of funding.
844	(7)(6)Unless authorized otherwise by the Legislature,
845	allocation and prorationof charter school capital outlay funds
846	shall be made to eligiblecharter schools by the Commissioner of
847	Education in an amount and in a manner authorized by subsection
848	(1).
849	Section 4. This act shall take effect September 1, 2003.