HB 1279 2003
1	CHAMBER ACTION
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6	The Committee on Education K-20 recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to charter schools; amending s. 1002.33,
12	F.S.; providing guiding principles; requiring an emphasis
13	on reading; requiring certain accountability measures;
14	authorizing community colleges to develop charter schools;
15	revising application requirements; requiring fiscal
16	projections in a charter application; extending the time
17	allowed for the State Board of Education to act on an
18	appeal; requiring auditors to provide notification of
19	certain financial conditions; providing additional
20	requirements for a charter school’s annual report;
21	eliminating limitations on the number of charter schools
22	per school district; creating the Charter School
23	Accountability and Funding Authority and providing
24	purpose, composition, and duties; eliminating a review
25	panel; revising provisions relating to the analysis of
26	charter school performance; amending ss. 1002.32 and
27	1011.68, F.S.; correcting cross references; amending s.
28	1013.62, F.S.; requiring the Charter School Accountability
29	and Funding Authority to recommend allocations of capital
30	outlay funds to charter schools; providing eligibility
31	criteria for funding; providing priorities; eliminating a
32	formula for providing allocations; providing an effective
33	date.
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35	WHEREAS, in the 2002-2003 school year, Florida has 223
36	charter schools educating approximately 51,000 Florida students,
37	with a projected increase of 117 additional charter schools in
38	the next school year, and
39	WHEREAS, this rate of growth is a dramatic increase over
40	the prior averages of 36 charter schools per year, and
41	WHEREAS, while charter schools are public schools, their
42	unique populations or small size mean that few of them are
43	eligible for inclusion in the state’s accountability system,
44	with only 38 of the 173 charter schools receiving a school
45	performance grade in 2002, and
46	WHEREAS, the issue of charter school accountability is of
47	the utmost importance at this time of budget constraints and
48	heightened awareness of public ethics, NOW, THEREFORE,
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50	Be It Enacted by the Legislature of the State of Florida:
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52	Section 1. Subsections (2), (5), (6), (7), (8), (9), (10),
53	(13), (21), (23), and (24) of section 1002.33, Florida Statutes,
54	are amended and present subsections (14) through (26) are
55	renumbered as subsections (13) through (25), respectively, to
56	read:
57	1002.33 Charter schools.--
58	(2) GUIDING PRINCIPLES;PURPOSE.—
59	(a) Charter schools in Florida shall be guided by the
60	following principles:
61	1. Meet high standards of student achievement while
62	providing parents flexibility to choose among diverse
63	educational opportunities within the state’s public school
64	system.
65	2. Promote enhanced academic success and financial
66	efficiency by aligning responsibility with accountability.
67	3. Provide parents with sufficient information on whether
68	their child is reading at grade level and whether the child
69	gains at least a year’s worth of learning for every year spent
70	in the charter school.
71	4. Provide an innovative and stable plan for capital
72	outlay funding.
73	(b)(a)Charter schools shall fulfill the following
74	purposes:
75	1. Improve student learning and academic achievement.
76	2. Increase learning opportunities for all students, with
77	special emphasis on low-performing students and reading.
78	3. Create new professional opportunities for teachers,
79	including ownership of the learning program at the school site.
80	4. Encourage the use of innovative learning methods.
81	5. Require the measurement of learning outcomes.
82	(c)(b)Charter schools may fulfill the following purposes:
83	1. Create innovative measurement tools.
84	2. Provide rigorous competition within the public school
85	district to stimulate continual improvement in all public
86	schools.
87	3. Expand the capacity of the public school system.
88	(5) SPONSOR; DUTIES.--
89	(a)1.A district school board may sponsor a charter school
90	in the county over which the district school board has
91	jurisdiction.
92	2.(b)A state university may grant a charter to a lab
93	school created under s. 1002.32 and shall be considered to be
94	the school's sponsor. Such school shall be considered a charter
95	lab school.
96	(b)1.(c)The sponsor shall monitor and review the charter
97	school in its progress toward the goals established in the
98	charter.
99	2.(d)The sponsor shall monitor the revenues and
100	expenditures of the charter school.
101	3.(e)The sponsor may approve a charter for a charter
102	school before the applicant has secured space, equipment, or
103	personnel, if the applicant indicates approval is necessary for
104	it to raise working capital.
105	4.(f)The sponsor's policies shall not apply to a charter
106	school.
107	5.(g)TheAsponsor shall ensure that the charter is
108	innovative and consistent with the state education goals
109	established by s. 1000.03(5).
110	6. The sponsor shall ensure that the charter school
111	participates in the state’s education accountability system and
112	shall use appropriate interventions and sanctions if a charter
113	school falls short of performance measures included in the
114	approved charter.
115
116	A community college may work with the school district or school
117	districts in its designated service area to develop charter
118	schools that offer secondary education. These charter schools
119	must include an option for students to receive an associate
120	degree upon high school graduation. District school boards shall
121	cooperate with and assist the community college on the charter
122	application. Community college applications for charter schools
123	are not subject to the time deadlines outlined in subsection (6)
124	and may be approved by the district school board at any time
125	during the year. Community colleges shall not report FTE for any
126	students who receive FTE funding through the Florida Education
127	Finance Program.
128	(6) APPLICATION PROCESS AND REVIEW.--Beginning September
129	1, 2003, applications are subject to the following requirements:
130	(a) A person or entity wishing to open a charter school
131	shall prepare an application that:
132	1. Demonstrates how the school will use the guiding
133	principles and meet the statutorily defined purpose of a charter
134	school.
135	2. Provides a detailed curriculum plan that illustrates
136	how students will be provided services to attain the Sunshine
137	State Standards.
138	3. Contains goals and objectives for improving student
139	learning and measuring that improvement. These goals and
140	objectives must indicate how much academic improvement students
141	are expected to show each year, how success will be evaluated,
142	and the specific results to be attained through instruction.
143	4. Describes the reading curriculum and differentiated
144	strategies that will be used for students reading at grade level
145	or higher and a separate curriculum and strategies for students
146	who are reading below grade level. A sponsor shall deny a
147	charter if the school does not propose a reading curriculum that
148	is consistent with effective teaching strategies that are
149	grounded in scientifically based reading research.
150	5. Contains an annual financial plan for each year
151	requested by the charter for operation of the school for up to 5
152	years. This plan must contain anticipated fund balances based on
153	revenue projections, a spending plan based on projected revenues
154	and expenses, and a description of controls that will safeguard
155	finances and projected enrollment trends.
156	(b)(a)A district school board shall receive and review
157	all applications for a charter school. A district school board
158	shall receive and consider charter school applications received
159	on or before September 1October 1of each calendar year for
160	charter schools to be opened at the beginning of the school
161	district's next school year, or to be opened at a time agreed to
162	by the applicant and the district school board. A district
163	school board may receive applications later than this date if it
164	chooses. A sponsor may not charge an applicant for a charter any
165	fee for the processing or consideration of an application, and a
166	sponsor may not base its consideration or approval of an
167	application upon the promise of future payment of any kind.
168	1. In order to facilitate an accurate budget projection
169	process, a district school board shall be held harmless for FTE
170	students who are not included in the FTE projection due to
171	approval of charter school applications after the FTE projection
172	deadline. In a further effort to facilitate an accurate budget
173	projection, within 15 calendar days after receipt of a charter
174	school application, a district school board or other sponsor
175	shall report to the Department of Education the name of the
176	applicant entity, the proposed charter school location, and its
177	projected FTE.
178	2. In order to ensure fiscal responsibility, an
179	application for a charter school shall include a full accounting
180	of expected assets, a projection of expected sources and amounts
181	of income, including income derived from projected student
182	enrollments and from community support, and an expense
183	projection that includes full accounting of the costs of
184	operation, including start-up costs.
185	3.2.A district school board shall by a majority vote
186	approve or deny an application no later than 60 calendar days
187	after the application is received, unless the district school
188	board and the applicant mutually agree to temporarily postpone
189	the vote to a specific date, at which time the district school
190	board shall by a majority vote approve or deny the application.
191	If the district school board fails to act on the application,
192	an applicant may appeal to the State Board of Education as
193	provided in paragraph (c)(b). If an application is denied, the
194	district school board shall, within 10 calendar days, articulate
195	in writing the specific reasons based upon good cause supporting
196	its denial of the charter application.
197	4.3.For budget projection purposes, the district school
198	board or other sponsor shall report to the Department of
199	Education the approval or denial of a charter application within
200	10 calendar days after such approval or denial. In the event of
201	approval, the report to the Department of Education shall
202	include the final projected FTE for the approved charter school.
203	5.4.Upon approval of a charter application, the initial
204	startup shall commence with the beginning of the public school
205	calendar for the district in which the charter is granted unless
206	the district school board allows a waiver of this provision for
207	good cause.
208	(c)(b)An applicant may appeal any denial of that
209	applicant's application or failure to act on an application to
210	the State Board of Education no later than 30 calendar days
211	after receipt of the district school board's decision or failure
212	to act and shall notify the district school board of its appeal.
213	Any response of the district school board shall be submitted to
214	the State Board of Education within 30 calendar days after
215	notification of the appeal. Upon receipt of notification from
216	the State Board of Education that a charter school applicant is
217	filing an appeal, the Commissioner of Education shall convene a
218	meeting of the Charter School Appeal Commission to study and
219	make recommendations to the State Board of Education regarding
220	its pending decision about the appeal. The commission shall
221	forward its recommendation to the state board no later than 7
222	calendar days prior to the date on which the appeal is to be
223	heard. The State Board of Education shall by majority vote
224	accept or reject the decision of the district school board no
225	later than 9060calendar days after an appeal is filed in
226	accordance with State Board of Education rule. The Charter
227	School Appeal Commission may reject an appeal submission for
228	failure to comply with procedural rules governing the appeals
229	process. The rejection shall describe the submission errors. The
230	appellant may have up to 15 calendar days from notice of
231	rejection to resubmit an appeal that meets requirements of State
232	Board of Education rule. An application for appeal submitted
233	subsequent to such rejection shall be considered timely if the
234	original appeal was filed within 30 calendar days after receipt
235	of notice of the specific reasons for the district school
236	board's denial of the charter application. The State Board of
237	Education shall remand the application to the district school
238	board with its written decision that the district school board
239	approve or deny the application. The district school board shall
240	implement the decision of the State Board of Education. The
241	decision of the State Board of Education is not subject to the
242	provisions of the Administrative Procedure Act, chapter 120.
243	(d)(c)The district school board shall act upon the
244	decision of the State Board of Education within 30 calendar days
245	after it is received. The State Board of Education's decision is
246	a final action subject to judicial review.
247	(e)(d)1. A Charter School Appeal Commission is established
248	to assist the commissioner and the State Board of Education with
249	a fair and impartial review of appeals by applicants whose
250	charters have been denied or whose charter contracts have not
251	been renewed by their sponsors.
252	2. The Charter School Appeal Commission may receive copies
253	of the appeal documents forwarded to the State Board of
254	Education, review the documents, gather other applicable
255	information regarding the appeal, and make a written
256	recommendation to the commissioner. The recommendation must
257	state whether the appeal should be upheld or denied and include
258	the reasons for the recommendation being offered. The
259	commissioner shall forward the recommendation to the State Board
260	of Education no later than 7 calendar days prior to the date on
261	which the appeal is to be heard. The state board must consider
262	the commission's recommendation in making its decision, but is
263	not bound by the recommendation. The decision of the Charter
264	School Appeal Commission is not subject to the provisions of the
265	Administrative Procedure Act, chapter 120.
266	3. The commissioner shall appoint the members of the
267	Charter School Appeal Commission. Members shall serve without
268	compensation but may be reimbursed for travel and per diem
269	expenses in conjunction with their service. One-half of the
270	members must represent currently operating charter schools, and
271	one-half of the members must represent school districts. The
272	commissioner or a named designee shall chair the Charter School
273	Appeal Commission.
274	4. The chair shall convene meetings of the commission and
275	shall ensure that the written recommendations are completed and
276	forwarded in a timely manner. In cases where the commission
277	cannot reach a decision, the chair shall make the written
278	recommendation with justification, noting that the decision was
279	rendered by the chair.
280	5. Commission members shall thoroughly review the
281	materials presented to them from the appellant and the sponsor.
282	The commission may request information to clarify the
283	documentation presented to it. In the course of its review, the
284	commission may facilitate the postponement of an appeal in those
285	cases where additional time and communication may negate the
286	need for a formal appeal and both parties agree, in writing, to
287	postpone the appeal to the State Board of Education. A new date
288	certain for the appeal shall then be set based upon the rules
289	and procedures of the State Board of Education. Commission
290	members shall provide a written recommendation to the state
291	board as to whether the appeal should be upheld or denied. A
292	fact-based justification for the recommendation must be
293	included. The chair must ensure that the written recommendation
294	is submitted to the State Board of Education members no later
295	than 7 calendar days prior to the date on which the appeal is to
296	be heard. Both parties in the case shall also be provided a copy
297	of the recommendation.
298	(f)(e)The Department of Education may provide technical
299	assistance to an applicant upon written request.
300	(g)(f)In considering charter applications for a lab
301	school, a state university shall consult with the district
302	school board of the county in which the lab school is located.
303	The decision of a state university may be appealed pursuant to
304	the procedure established in this subsection.
305	(h)(g)The terms and conditions for the operation of a
306	charter school shall be set forth by the sponsor and the
307	applicant in a written contractual agreement, called a charter.
308	The sponsor shall not impose unreasonable rules or regulations
309	that violate the intent of giving charter schools greater
310	flexibility to meet educational goals. The applicant and sponsor
311	shall have 6 months in which to mutually agree to the provisions
312	of the charter. The Department of Education shall provide
313	mediation services for any dispute regarding this section
314	subsequent to the approval of a charter application and for any
315	dispute relating to the approved charter, except disputes
316	regarding charter school application denials. If the
317	Commissioner of Education determines that the dispute cannot be
318	settled through mediation, the dispute may be appealed to an
319	administrative law judge appointed by the Division of
320	Administrative Hearings. The administrative law judge may rule
321	on issues of equitable treatment of the charter school as a
322	public school, whether proposed provisions of the charter
323	violate the intended flexibility granted charter schools by
324	statute, or on any other matter regarding this section except a
325	charter school application denial, and shall award the
326	prevailing party reasonable attorney's fees and costs incurred
327	to be paid by the losing party. The costs of the administrative
328	hearing shall be paid by the party whom the administrative law
329	judge rules against.
330	(7) CHARTER.--The major issues involving the operation of
331	a charter school shall be considered in advance and written into
332	the charter. The charter shall be signed by the governing body
333	of the charter school and the sponsor, following a public
334	hearing to ensure community input.
335	(a) The charter shall address, and criteria for approval
336	of the charter shall be based on:
337	1. The school's mission, the students to be served, and
338	the ages and grades to be included.
339	2. The focus of the curriculum, the instructional methods
340	to be used, any distinctive instructional techniques to be
341	employed, and identification and acquisition of appropriate
342	technologies needed to improve educational and administrative
343	performance which include a means for promoting safe, ethical,
344	and appropriate uses of technology which comply with legal and
345	professional standards. The charter shall ensure that reading is
346	a primary focus of the curriculum and that resources are
347	provided to identify and provide specialized instruction for
348	students who are reading below grade level. The curriculum and
349	instructional strategies for reading must be consistent with the
350	Sunshine State Standards and grounded in scientifically based
351	reading research.
352	3. The current incoming baseline standard of student
353	academic achievement, the outcomes to be achieved, and the
354	method of measurement that will be used. The criteria listed in
355	this subparagraph shall include a detailed description for each
356	of the following:
357	a. How the baseline student academic achievement levels
358	and prior rates of academic progress will be established.
359	b. How these baseline rates will be compared to rates of
360	academic progress achieved by these same students while
361	attending the charter school.
362	c. To the extent possible, how these rates of progress
363	will be evaluated and compared with rates of progress of other
364	closely comparable student populations.
365
366	The district school board is required to provide academic
367	student performance data to charter schools for each of their
368	students coming from the district school system, as well as
369	rates of academic progress of comparable student populations in
370	the district school system.
371	4. The methods used to identify the educational strengths
372	and needs of students and how well educational goals and
373	performance standards are met by students attending the charter
374	school. Included in the methods is a means for the charter
375	school to ensure accountability to its constituents by analyzing
376	student performance data and by evaluating the effectiveness and
377	efficiency of its major educational programs. Students in
378	charter schools shall, at a minimum, participate in the
379	statewide assessment program created under s. 1008.22.
380	5. In secondary charter schools, a method for determining
381	that a student has satisfied the requirements for graduation in
382	s. 1003.43.
383	6. A method for resolving conflicts between the governing
384	body of the charter school and the sponsor.
385	7. The admissions procedures and dismissal procedures,
386	including the school's code of student conduct.
387	8. The ways by which the school will achieve a
388	racial/ethnic balance reflective of the community it serves or
389	within the racial/ethnic range of other public schools in the
390	same school district.
391	9. The financial and administrative management of the
392	school, including a reasonable demonstration of the professional
393	experience or competence of those individuals or organizations
394	applying to operate the charter school or those hired or
395	retained to perform such professional services and the
396	description of clearly delineated responsibilities and the
397	policies and practices needed to effectively manage the charter
398	school. A description of internal audit procedures and
399	establishment of controls to ensure that financial resources are
400	properly managed must be included. Both public sector and
401	private sector professional experience shall be equally valid in
402	such a consideration.
403	10. The asset and liability projections required in the
404	application which are incorporated into the charter and shall be
405	compared with information provided in the annual report of the
406	charter school. The charter shall ensure that, if a charter
407	school internal audit reveals a deficit financial position, the
408	auditors are required to notify the charter school governing
409	board, the sponsor, and the Department of Education.
410	11.10.A description of procedures that identify various
411	risks and provide for a comprehensive approach to reduce the
412	impact of losses; plans to ensure the safety and security of
413	students and staff; plans to identify, minimize, and protect
414	others from violent or disruptive student behavior; and the
415	manner in which the school will be insured, including whether or
416	not the school will be required to have liability insurance,
417	and, if so, the terms and conditions thereof and the amounts of
418	coverage.
419	12.11.The term of the charter which shall provide for
420	cancellation of the charter if insufficient progress has been
421	made in attaining the student achievement objectives of the
422	charter and if it is not likely that such objectives can be
423	achieved before expiration of the charter. The initial term of a
424	charter shall be for 3, 4, or 5 years. In order to facilitate
425	access to long-term financial resources for charter school
426	construction, charter schools that are operated by a
427	municipality or other public entity as provided by law are
428	eligible for up to a 15-year charter, subject to approval by the
429	district school board. A charter lab school is eligible for a
430	charter for a term of up to 15 years. In addition, to facilitate
431	access to long-term financial resources for charter school
432	construction, charter schools that are operated by a private,
433	not-for-profit, s. 501(c)(3) status corporation are eligible for
434	up to a 10-year charter, subject to approval by the district
435	school board. Such long-term charters remain subject to annual
436	review and may be terminated during the term of the charter, but
437	only for specific good cause according to the provisions set
438	forth in subsection (8).
439	13.12.The facilities to be used and their location.
440	14.13.The qualifications to be required of the teachers
441	and the potential strategies used to recruit, hire, train, and
442	retain qualified staff to achieve best value.
443	15.14.The governance structure of the school, including
444	the status of the charter school as a public or private employer
445	as required in paragraph (12)(i).
446	16.15.A timetable for implementing the charter which
447	addresses the implementation of each element thereof and the
448	date by which the charter shall be awarded in order to meet this
449	timetable.
450	17.16.In the case of an existing public school being
451	converted to charter status, alternative arrangements for
452	current students who choose not to attend the charter school and
453	for current teachers who choose not to teach in the charter
454	school after conversion in accordance with the existing
455	collective bargaining agreement or district school board rule in
456	the absence of a collective bargaining agreement. However,
457	alternative arrangements shall not be required for current
458	teachers who choose not to teach in a charter lab school, except
459	as authorized by the employment policies of the state university
460	which grants the charter to the lab school.
461	(b) A charter may be renewed every 5 school years,
462	provided that a program review demonstrates that the criteria in
463	paragraph (a) have been successfully accomplished and that none
464	of the grounds for nonrenewal established by paragraph (8)(a)
465	has been documented. In order to facilitate long-term financing
466	for charter school construction, charter schools operating for a
467	minimum of 2 years and demonstrating exemplary academic
468	programming and fiscal management are eligible for a 15-year
469	charter renewal. Such long-term charter is subject to annual
470	review and may be terminated during the term of the charter.
471	(c) A charter may be modified during its initial term or
472	any renewal term upon the recommendation of the sponsor or the
473	charter school governing board and the approval of both parties
474	to the agreement.
475	(8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
476	(a) At the end of the term of a charter, the sponsor may
477	choose not to renew the charter for any of the following
478	grounds:
479	1. Failure to participate in the state's education
480	accountability system created in s. 1008.31, as required in this
481	section, or failure tomeet the requirements for student
482	performance stated in the charter.
483	2. Failure to meet generally accepted standards of fiscal
484	management.
485	3. Violation of law.
486	4. Other good cause shown.
487	(b) During the term of a charter, the sponsor may
488	terminate the charter for any of the grounds listed in paragraph
489	(a).
490	(c) At least 90 days prior to renewing or terminating a
491	charter, the sponsor shall notify the governing body of the
492	school of the proposed action in writing. The notice shall state
493	in reasonable detail the grounds for the proposed action and
494	stipulate that the school's governing body may, within 14
495	calendar days after receiving the notice, request an informal
496	hearing before the sponsor. The sponsor shall conduct the
497	informal hearing within 30 calendar days after receiving a
498	written request. The charter school's governing body may, within
499	14 calendar days after receiving the sponsor's decision to
500	terminate or refuse to renew the charter, appeal the decision
501	pursuant to the procedure established in subsection (6).
502	(d) A charter may be terminated immediately if the sponsor
503	determines that good cause has been shown or if the health,
504	safety, or welfare of the students is threatened. The school
505	district in which the charter school is located shall assume
506	operation of the school under these circumstances. The charter
507	school's governing board may, within 14 days after receiving the
508	sponsor's decision to terminate the charter, appeal the decision
509	pursuant to the procedure established in subsection (6).
510	(e) When a charter is not renewed or is terminated, the
511	school shall be dissolved under the provisions of law under
512	which the school was organized, and any unencumbered public
513	funds from the charter school shall revert to the district
514	school board. In the event a charter school is dissolved or is
515	otherwise terminated, all district school board property and
516	improvements, furnishings, and equipment purchased with public
517	funds shall automatically revert to full ownership by the
518	district school board, subject to complete satisfaction of any
519	lawful liens or encumbrances. Any unencumbered public funds from
520	the charter school, district school board property and
521	improvements, furnishings, and equipment purchased with public
522	funds, or financial or other records pertaining to the charter
523	school, in the possession of any person, entity, or holding
524	company, other than the charter school, shall be held in trust
525	upon the district school board's request, until any appeal
526	status is resolved.
527	(f) If a charter is not renewed or is terminated, the
528	charter school is responsible for all debts of the charter
529	school. The district may not assume the debt from any contract
530	for services made between the governing body of the school and a
531	third party, except for a debt that is previously detailed and
532	agreed upon in writing by both the district and the governing
533	body of the school and that may not reasonably be assumed to
534	have been satisfied by the district.
535	(g) If a charter is not renewed or is terminated, a
536	student who attended the school may apply to, and shall be
537	enrolled in, another public school. Normal application deadlines
538	shall be disregarded under such circumstances.
539	(9) CHARTER SCHOOL REQUIREMENTS.--
540	(a) A charter school shall be nonsectarian in its
541	programs, admission policies, employment practices, and
542	operations.
543	(b) A charter school shall admit students as provided in
544	subsection (10).
545	(c) A charter school shall be accountable to its sponsor
546	for performance as provided in subsection (7).
547	(d) A charter school shall not charge tuition or
548	registration fees, except those fees normally charged by other
549	public schools. However, a charter lab school may charge a
550	student activity and service fee as authorized by s. 1002.32(5).
551	(e) A charter school shall meet all applicable state and
552	local health, safety, and civil rights requirements.
553	(f) A charter school shall not violate the
554	antidiscrimination provisions of s. 1000.05.
555	(g) A charter school shall provide for an annual financial
556	audit in accordance with s. 218.39.
557	(h) No organization shall hold more than 15 charters
558	statewide.
559	(i) In order to provide financial information that is
560	comparable to that reported for other public schools, charter
561	schools are to maintain all financial records which constitute
562	their accounting system:
563	1. In accordance with the accounts and codes prescribed in
564	the most recent issuance of the publication titled "Financial
565	and Program Cost Accounting and Reporting for Florida Schools";
566	or
567	2. At the discretion of the charter school governing
568	board, a charter school may elect to follow generally accepted
569	accounting standards for not-for-profit organizations, but must
570	reformat this information for reporting according to this
571	paragraph.
572
573	Charter schools are to provide annual financial report and
574	program cost report information in the state-required formats
575	for inclusion in district reporting in compliance with s.
576	1011.60(1). Charter schools that are operated by a municipality
577	or are a component unit of a parent nonprofit organization may
578	use the accounting system of the municipality or the parent but
579	must reformat this information for reporting according to this
580	paragraph.
581	(j) The governing board of the charter school shall
582	annually adopt and maintain an operating budget.
583	(k) The governing body of the charter school shall
584	exercise continuing oversight over charter school operations and
585	make annual progress reports to its sponsor, which upon
586	verification shall be forwarded to the Commissioner of Education
587	at the same time as other annual school accountability reports.
588	The report shall contain at least the following information:
589	(l) The governing body of the charter school shall report
590	its progress annually to its sponsor, which shall verify and
591	forward the report to the Commissioner of Education at the same
592	time as other annual school accountability reports. The
593	Department of Education shall consult with the Charter School
594	Accountability and Funding Authority to provide suggested
595	guidelines and a format or template for the annual report. The
596	department shall include in its compilation a notation that the
597	school failed to file its report by the established deadline.
598	The guidelines shall include at least the following components:
599	1. Student achievement performance data, including the
600	information required for the annual school report and the
601	education accountability system governed by ss. 1008.31 and
602	1008.345. Charter schools are subject to the same accountability
603	requirements as other public schools, including reports of
604	student achievement information that links baseline student data
605	to the school’s performance projections identified in the
606	charter. The charter school shall identify reasons for any
607	difference between projected and actual student performanceThe
608	charter school's progress toward achieving the goals outlined in
609	its charter.
610	2. Financial status of the charter school, according to
611	guidelines recommended by the Charter School Accountability and
612	Funding Authority and provided by the Department of Education.
613	The guidelines must include revenues and expenditures at a level
614	of detail that allows for analysis of the ability to meet
615	financial obligations and timely repayment of debtThe
616	information required in the annual school report pursuant to s.
617	1008.345.
618	3. Documentation of the facilities in current use and any
619	planned facilities for use by the charter school for instruction
620	of students, administrative functions, or investment purposes
621	Financial records of the charter school, including revenues and
622	expenditures.
623	4. Descriptive information about the charter school's
624	personnel, includingsalary and benefit levels of charter school
625	employees and the proportion of instructional personnel who hold
626	professional or temporary certificates.
627	(m)(l)A charter school shall not levy taxes or issue
628	bonds secured by tax revenues.
629	(n)(m)A charter school shall provide instruction for at
630	least the number of days required by law for other public
631	schools, and may provide instruction for additional days.
632	(10) ELIGIBLE STUDENTS.--
633	(a) A charter school shall be open to any student covered
634	in an interdistrict agreement or residing in the school district
635	in which the charter school is located; however, in the case of
636	a charter lab school, the charter lab school shall be open to
637	any student eligible to attend the lab school as provided in s.
638	1002.32 or who resides in the school district in which the
639	charter lab school is located. Any eligible student shall be
640	allowed interdistrict transfer to attend a charter school when
641	based on good cause.
642	(b) The charter school shall enroll an eligible student
643	who submits a timely application, unless the number of
644	applications exceeds the capacity of a program, class, grade
645	level, or building. In such case, all applicants shall have an
646	equal chance of being admitted through a random selection
647	process.
648	(c) When a public school converts to charter status,
649	enrollment preference shall be given to students who would have
650	otherwise attended that public school.
651	(d) A charter school may give enrollment preference to the
652	following student populations:
653	1. Students who are siblings of a student enrolled in the
654	charter school.
655	2. Students who are the children of a member of the
656	governing board of the charter school.
657	3. Students who are the children of an employee of the
658	charter school.
659	(e) A charter school may limit the enrollment process only
660	to target the following student populations:
661	1. Students within specific age groups or grade levels.
662	2. Students considered at risk of dropping out of school
663	or academic failure. Such students shall include exceptional
664	education students.
665	3. Students enrolling in a charter school-in-the-workplace
666	or charter school-in-a-municipality established pursuant to
667	subsection (15)(16).
668	4. Students residing within a reasonable distance of the
669	charter school, as described in paragraph (20)(21)(c). Such
670	students shall be subject to a random lottery and to the
671	racial/ethnic balance provisions described in subparagraph
672	(7)(a)8. or any federal provisions that require a school to
673	achieve a racial/ethnic balance reflective of the community it
674	serves or within the racial/ethnic range of other public schools
675	in the same school district.
676	5. Students who meet reasonable academic, artistic, or
677	other eligibility standards established by the charter school
678	and included in the charter school application and charter or,
679	in the case of existing charter schools, standards that are
680	consistent with the school's mission and purpose. Such standards
681	shall be in accordance with current state law and practice in
682	public schools and may not discriminate against otherwise
683	qualified individuals.
684	6. Students articulating from one charter school to
685	another pursuant to an articulation agreement between the
686	charter schools that has been approved by the sponsor.
687	(f) Students with handicapping conditions and students
688	served in English for Speakers of Other Languages programs shall
689	have an equal opportunity of being selected for enrollment in a
690	charter school.
691	(g) A student may withdraw from a charter school at any
692	time and enroll in another public school as determined by
693	district school board rule.
694	(h) The capacity of the charter school shall be determined
695	annually by the governing board, in conjunction with the
696	sponsor, of the charter school in consideration of the factors
697	identified in this subsection.
698	(13) NUMBER OF SCHOOLS.—
699	(a) The number of newly created charter schools is limited
700	to no more than 28 in each school district that has 100,000 or
701	more students, no more than 20 in each school district that has
702	50,000 to 99,999 students, and no more than 12 in each school
703	district with fewer than 50,000 students.
704	(b) An existing public school which converts to a charter
705	school shall not be counted toward the limit established by
706	paragraph (a).
707	(c) Notwithstanding any limit established by this
708	subsection, a district school board or a charter school
709	applicant shall have the right to request an increase of the
710	limit on the number of charter schools authorized to be
711	established within the district from the State Board of
712	Education.
713	(d) Whenever a municipality has submitted charter
714	applications for the establishment of a charter school feeder
715	pattern (elementary, middle, and senior high schools), and upon
716	approval of each individual charter application by the district
717	school board, such applications shall then be designated as one
718	charter school for all purposes listed pursuant to this section.
719	(20)(21)SERVICES.--
720	(a) A sponsor shall provide certain administrative and
721	educational services to charter schools. These services shall
722	include contract management services, full-time equivalent and
723	data reporting services, exceptional student education
724	administration services, test administration services,
725	processing of teacher certificate data services, and information
726	services. Any administrative fee charged by the sponsor for the
727	provision of services shall be limited to 5 percent of the
728	available funds defined in paragraph (17)(18)(b).
729	(b) If goods and services are made available to the
730	charter school through the contract with the school district,
731	they shall be provided to the charter school at a rate no
732	greater than the district's actual cost. To maximize the use of
733	state funds, school districts shall allow charter schools to
734	participate in the sponsor's bulk purchasing program if
735	applicable.
736	(c) Transportation of charter school students shall be
737	provided by the charter school consistent with the requirements
738	of subpart I.e. of chapter 1006. The governing body of the
739	charter school may provide transportation through an agreement
740	or contract with the district school board, a private provider,
741	or parents. The charter school and the sponsor shall cooperate
742	in making arrangements that ensure that transportation is not a
743	barrier to equal access for all students residing within a
744	reasonable distance of the charter school as determined in its
745	charter.
746	(22)(23) CHARTER SCHOOL ACCOUNTABILITY AND FUNDING
747	AUTHORITY;REVIEW PANEL ANDLEGISLATIVE REVIEW.—
748	(a) The Department of Education shall regularly convene a
749	Charter School Accountability and Funding AuthorityReview Panel
750	in order to evaluate compliance with the guiding principles in
751	subsection (2) and performance accountability of charter schools
752	and to oversee funding as required by s. 1013.62review issues,
753	practices, and policies regarding charter schools.
754	1. The composition of the authorityreview panelshall
755	include individuals with experience in finance, administration,
756	law, education, and school governance, and individuals familiar
757	with charter school construction and operation. No current
758	charter school operator or sponsor shall be a member of the
759	authority. The authoritypanelshall include two appointees each
760	from the Commissioner of Education, the President of the Senate,
761	and the Speaker of the House of Representatives. The Governor
762	shall appoint three members of the authoritypanel and shall
763	annually designate the chair. The members of the authority shall
764	serve 3-year staggered terms and shall be eligible for
765	reappointmentEach member of the panel shall serve a 1-year
766	term, unless renewed by the office making the appointment.
767	2. The Charter School Accountability and Funding Authority
768	panel shall make recommendations to the Legislature, to the
769	State BoardDepartmentof Education, to charter schools, and to
770	school districts onfor improving charter school operations,and
771	oversight and for ensuring best business practices atand fair
772	business relationships, and distributing facilities fundingwith
773	charter schools.
774	3. Annually, the Charter School Accountability and Funding
775	Authority shall recommend an allocation for charter schools
776	capital outlay funding as required by this section. The
777	authority shall determine the priorities based on an analysis of
778	the charter school’s compliance with the guiding principles in
779	subsection (2) and the charter school’s previous years of
780	operation, including, but not limited to, the following
781	criteria:
782	a. The charter school’s need for permanent construction
783	related to the size and mission of the school.
784	b. The financial stability of the charter school.
785	c. Parental satisfaction.
786	d. Improved student performance.
787	e. Accreditation by the Commission on Schools of the
788	Southern Association of Colleges and Schools.
789	f. Other appropriate accountability and performance data.
790	(b) The Legislature shall review the operation of charter
791	schools during the 2005 Regular Session of the Legislature.
792	(23)(24)ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon
793	receipt of the annual report required by paragraph (9)(l)(9)(k),
794	the Department of Education shall provide to the State Board of
795	Education, the Commissioner of Education, the Governor,the
796	President of the Senate, andthe Speaker of the House of
797	Representatives, and the Charter School Accountability and
798	Funding Authorityan analysis and comparison of the overall
799	performance of charter school students, to include all students
800	whose scores are counted as part of the statewide assessment
801	program, versus comparable public school students in the
802	district as determined by the statewide assessment program
803	currently administered in the school district, and other
804	assessments administered pursuant to s. 1008.22(3). If a charter
805	school is required to prepare a performance improvement plan,
806	the Department of Education shall immediately report that
807	charter school to the Charter School Accountability and Funding
808	Authority.
809	Section 2. Subsection (2) and paragraph (h) of subsection
810	(9) of section 1002.32, Florida Statutes, are amended to read:
811	1002.32 Developmental research (laboratory) schools.--
812	(2) ESTABLISHMENT.--There is established a category of
813	public schools to be known as developmental research
814	(laboratory) schools (lab schools). Each lab school shall
815	provide sequential instruction and shall be affiliated with the
816	college of education within the state university of closest
817	geographic proximity. A lab school to which a charter has been
818	issued under s. 1002.33(5)(a)2.(5)(b)must be affiliated with
819	the college of education within the state university that issued
820	the charter, but is not subject to the requirement that the
821	state university be of closest geographic proximity. For the
822	purpose of state funding, Florida Agricultural and Mechanical
823	University, Florida Atlantic University, Florida State
824	University, the University of Florida, and other universities
825	approved by the State Board of Education and the Legislature are
826	authorized to sponsor a lab schoolone or more lab schools.
827	(9) FUNDING.--Funding for a lab school, including a
828	charter lab school, shall be provided as follows:
829	(h) A lab school to which a charter has been issued under
830	s. 1002.33(5)(a)2.(5)(b)is eligible to receive funding for
831	charter school capital outlay if it meets the eligibility
832	requirements of s. 1013.62. If the lab school receives funds
833	from charter school capital outlay, the school shall receive
834	capital outlay funds otherwise provided in this subsection only
835	to the extent that funds allocated pursuant to s. 1013.62 are
836	insufficient to provide capital outlay funds to the lab school
837	at one-fifteenth of the cost per student station.
838	Section 3. Section 1011.68, Florida Statutes, is amended
839	to read:
840	1011.68 Funds for student transportation.--The annual
841	allocation to each district for transportation to public school
842	programs, including charter schools as provided in s.
843	1002.33(17)(18)(b), of students in membership in kindergarten
844	through grade 12 and in migrant and exceptional student programs
845	below kindergarten shall be determined as follows:
846	(1) Subject to the rules of the State Board of Education,
847	each district shall determine the membership of students who are
848	transported:
849	(a) By reason of living 2 miles or more from school.
850	(b) By reason of being students with disabilities or
851	enrolled in a teenage parent program, regardless of distance to
852	school.
853	(c) By reason of being in a state prekindergarten program,
854	regardless of distance from school.
855	(d) By reason of being career and technical, dual
856	enrollment, or students with disabilities transported from one
857	school center to another to participate in an instructional
858	program or service; or students with disabilities, transported
859	from one designation to another in the state, provided one
860	designation is a school center and provided the student's
861	individual educational plan (IEP) identifies the need for the
862	instructional program or service and transportation to be
863	provided by the school district. A "school center" is defined as
864	a public school center, community college, state university, or
865	other facility rented, leased, or owned and operated by the
866	school district or another public agency. A "dual enrollment
867	student" is defined as a public school student in membership in
868	both a public secondary school program and a community college
869	or a state university program under a written agreement to
870	partially fulfill ss. 1003.435 and 1007.23 and earning full-time
871	equivalent membership under s. 1011.62(1)(i).
872	(e) With respect to elementary school students whose grade
873	level does not exceed grade 6, by reason of being subjected to
874	hazardous walking conditions en route to or from school as
875	provided in s. 1006.23. Such rules shall, when appropriate,
876	provide for the determination of membership under this paragraph
877	for less than 1 year to accommodate the needs of students who
878	require transportation only until such hazardous conditions are
879	corrected.
880	(f) By reason of being a pregnant student or student
881	parent, and the child of a student parent as provided in s.
882	1003.54, regardless of distance from school.
883	(2) The allocation for each district shall be calculated
884	annually in accordance with the following formula:
885
886	T = B + EX. The elements of this formula are defined as follows:
887	T is the total dollar allocation for transportation. B is the
888	base transportation dollar allocation prorated by an adjusted
889	student membership count. The adjusted membership count shall be
890	derived from a multiplicative index function in which the base
891	student membership is adjusted by multiplying it by index
892	numbers that individually account for the impact of the price
893	level index, average bus occupancy, and the extent of rural
894	population in the district. EX is the base transportation dollar
895	allocation for disabled students prorated by an adjusted
896	disabled student membership count. The base transportation
897	dollar allocation for disabled students is the total state base
898	disabled student membership count weighted for increased costs
899	associated with transporting disabled students and multiplying
900	it by the prior year's average per student cost for
901	transportation. The adjusted disabled student membership count
902	shall be derived from a multiplicative index function in which
903	the weighted base disabled student membership is adjusted by
904	multiplying it by index numbers that individually account for
905	the impact of the price level index, average bus occupancy, and
906	the extent of rural population in the district. Each adjustment
907	factor shall be designed to affect the base allocation by no
908	more or less than 10 percent.
909	(3) The total allocation to each district for
910	transportation of students shall be the sum of the amounts
911	determined in subsection (2). If the funds appropriated for the
912	purpose of implementing this section are not sufficient to pay
913	the base transportation allocation and the base transportation
914	allocation for disabled students, the Department of Education
915	shall prorate the available funds on a percentage basis. If the
916	funds appropriated for the purpose of implementing this section
917	exceed the sum of the base transportation allocation and the
918	base transportation allocation for disabled students, the base
919	transportation allocation for disabled students shall be limited
920	to the amount calculated in subsection (2), and the remaining
921	balance shall be added to the base transportation allocation.
922	(4) No district shall use funds to purchase transportation
923	equipment and supplies at prices which exceed those determined
924	by the department to be the lowest which can be obtained, as
925	prescribed in s. 1006.27(1).
926	(5) Funds allocated or apportioned for the payment of
927	student transportation services may be used to pay for
928	transportation of students to and from school on local general
929	purpose transportation systems. Student transportation funds may
930	also be used to pay for transportation of students to and from
931	school in private passenger cars and boats when the
932	transportation is for isolated students, or students with
933	disabilities as defined by rule. Subject to the rules of the
934	State Board of Education, each school district shall determine
935	and report the number of assigned students using general purpose
936	transportation private passenger cars and boats. The allocation
937	per student must be equal to the allocation per student riding a
938	school bus.
939	(6) Notwithstanding other provisions of this section, in
940	no case shall any student or students be counted for
941	transportation funding more than once per day. This provision
942	includes counting students for funding pursuant to trips in
943	school buses, passenger cars, or boats or general purpose
944	transportation.
945	(7) Any funds received by a school district under this
946	section that are not required to transport students may, at the
947	discretion of the district school board, be transferred to the
948	district's Florida Education Finance Program.
949	Section 4. Section 1013.62, Florida Statutes, is amended
950	to read:
951	1013.62 Charter schools capital outlay funding.--
952	(1) In each year in which funds are appropriated for
953	charter school capital outlay purposes, the Commissioner of
954	Education shall allocate the funds among eligible charter
955	schools. The commissioner shall allocate the funds based on
956	recommendations provided by the Charter School Accountability
957	and Funding Authority.To be eligible for a funding allocation,
958	a charter school must:
959	(a) Have been in operation for 3 or more years;
960	(b) Be an expansion or expanded feeder chain of a charter
961	school currently receiving charter school capital outlay funds;
962	or
963	(c) Have been accredited by the Commission on Schools of
964	the Southern Association of Colleges and Schools.meet the
965	provisions of subsection (6),
966
967	In addition, a charter schoolmust have received final approval
968	from its sponsor pursuant to s. 1002.33 for operation during
969	that fiscal year, and must serve students in facilities that are
970	not provided by the charter school's sponsor.
971	(2)Prior to the release of capital outlay funds to a
972	school district on behalf of the charter school, the Department
973	of Education shall ensure that the district school board and the
974	charter school governing board enter into a written agreement
975	that includes provisions for the reversion of any unencumbered
976	funds and all equipment and property purchased with public
977	education funds to the ownership of the district school board,
978	as provided for in subsection (3), in the event that the school
979	terminates operations. Any funds recovered by the state shall be
980	deposited in the General Revenue Fund. A charter school is not
981	eligible for a funding allocation if it was created by the
982	conversion of a public school and operates in facilities
983	provided by the charter school's sponsor for a nominal fee or at
984	no charge or if it is directly or indirectly operated by the
985	school district. Unless otherwise provided in the General
986	Appropriations Act, the funding allocation for each eligible
987	charter school shall be determined by multiplying the school's
988	projected student enrollment by one-fifteenth of the cost-per-
989	student station specified in s. 1013.64(6)(b) for an elementary,
990	middle, or high school, as appropriate. If the funds
991	appropriated are not sufficient, the commissioner shall prorate
992	the available funds among eligible charter schools. Funds shall
993	be distributed on the basis of the capital outlay full-time
994	equivalent membership by grade level, which shall be calculated
995	by averaging the results of the second and third enrollment
996	surveys.The Department of Education shall distribute capital
997	outlay funds monthly, beginning in the first quarter of the
998	fiscal year, based on one-twelfth of the amount the department
999	reasonably expects the charter school to receive during that
1000	fiscal year. The commissioner shall adjust subsequent
1001	distributions as necessary to reflect each charter school's
1002	actual student enrollment as reflected in the second and third
1003	enrollment surveys. The commissioner shall establish the
1004	intervals and procedures for determining the projected and
1005	actual student enrollment of eligible charter schools.
1006	(3) Annually, the Charter School Accountability and
1007	Funding Authority shall recommend an allocation for charter
1008	schools capital outlay funding as required by this section. The
1009	authority shall determine the priorities based on the charter
1010	school’s compliance with the guiding principles in s. 1002.33(2)
1011	and an analysis of the charter school’s previous years of
1012	operation, including, but not limited to, the following
1013	criteria:
1014	(a) The charter school’s need for permanent construction
1015	related to the size and mission of the school.
1016	(b) The financial stability of the charter school.
1017	(c) Parental satisfaction.
1018	(d) Improved student performance.
1019	(e) Accreditation by the Commission on Schools of the
1020	Southern Association of Colleges and Schools.
1021	(f) Other appropriate accountability and performance data.
1022	(4)(2)A charter school's governing body may use charter
1023	school capital outlay funds for any capital outlay purpose that
1024	is directly related to the functioning of the charter school,
1025	including the:
1026	(a) Purchase of real property.
1027	(b) Construction, renovation, repair, and maintenance of
1028	school facilities.
1029	(c) Purchase, lease-purchase, or lease of permanent or
1030	relocatable school facilities.
1031	(d) Purchase of vehicles to transport students to and from
1032	the charter school.
1033	(5)(3)When a charter school is nonrenewed or terminated,
1034	any unencumbered funds and all equipment and property purchased
1035	with district public funds shall revert to the ownership of the
1036	district school board, as provided for in s. 1002.33(8)(e) and
1037	(f). In the case of a charter lab school, any unencumbered funds
1038	and all equipment and property purchased with university public
1039	funds shall revert to the ownership of the state university that
1040	issued the charter. The reversion of such equipment, property,
1041	and furnishings shall focus on recoverable assets, but not on
1042	intangible or irrecoverable costs such as rental or leasing
1043	fees, normal maintenance, and limited renovations. The reversion
1044	of all property secured with public funds is subject to the
1045	complete satisfaction of all lawful liens or encumbrances. If
1046	there are additional local issues such as the shared use of
1047	facilities or partial ownership of facilities or property, these
1048	issues shall be agreed to in the charter contract prior to the
1049	expenditure of funds.
1050	(6)(4)The Commissioner of Education shall specify
1051	procedures for submitting and approving requests for funding
1052	under this section and procedures for documenting expenditures.
1053	(7)(5)The annual legislative budget request of the
1054	Department of Education shall include a request for capital
1055	outlay funding for charter schools. The request shall be based
1056	on the projected number of students to be served in charter
1057	schools who meet the eligibility requirements of this section. A
1058	dedicated funding source, if identified in writing by the
1059	Commissioner of Education and submitted along with the annual
1060	charter school legislative budget request, may be considered an
1061	additional source of funding.
1062	(8)(6)Unless authorized otherwise by the Legislature,
1063	allocation and proration of charter school capital outlay funds
1064	shall be made to eligible charter schools by the Commissioner of
1065	Education in an amount and in a manner as recommended by the
1066	Charter School Accountability and Funding Authorityauthorized
1067	by subsection (1).
1068	Section 5. This act shall take effect September 1, 2003.