HB 1279 2003
1	CHAMBER ACTION
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6	The Committee on Appropriations 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; revising administrative fees charged
23	by the sponsor for the provision of services; providing a
24	report to the Governor; amending s. 1002.32, F.S.;
25	correcting a cross reference; providing exceptions to the
26	one lab school per university limitation; revising
27	provisions relating to funding for lab schools; revising
28	provisions relating to employees of lab schools; amending
29	s. 1011.68, F.S.; correcting a cross reference; amending
30	s. 1013.62, F.S.; revising eligibility criteria for
31	charter school capital outlay funding; revising purposes
32	for charter school capital outlay funds; providing
33	allocation criteria for future charter school capital
34	outlay appropriations; providing an effective date.
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36	WHEREAS, in the 2002-2003 school year, Florida has 223
37	charter schools educating approximately 51,000 Florida students,
38	with a projected increase of 117 additional charter schools in
39	the next school year, and
40	WHEREAS, this rate of growth is a dramatic increase over
41	the prior averages of 36 charter schools per year, and
42	WHEREAS, while charter schools are public schools, their
43	unique populations or small size mean that few of them are
44	eligible for inclusion in the state’s accountability system,
45	with only 38 of the 173 charter schools receiving a school
46	performance grade in 2002, and
47	WHEREAS, the issue of charter school accountability is of
48	the utmost importance at this time of budget constraints and
49	heightened awareness of public ethics, NOW, THEREFORE,
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51	Be It Enacted by the Legislature of the State of Florida:
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53	Section 1. Subsections (2), (5), (6), (7), (8), (9), (10),
54	(13), (21), and (24) of section 1002.33, Florida Statutes, are
55	amended and present subsections (14) through (26) are renumbered
56	as subsections (13) through (25), respectively, to 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	(b)(a)Charter schools shall fulfill the following
72	purposes:
73	1. Improve student learning and academic achievement.
74	2. Increase learning opportunities for all students, with
75	special emphasis on low-performing students and reading.
76	3. Create new professional opportunities for teachers,
77	including ownership of the learning program at the school site.
78	4. Encourage the use of innovative learning methods.
79	5. Require the measurement of learning outcomes.
80	(c)(b)Charter schools may fulfill the following purposes:
81	1. Create innovative measurement tools.
82	2. Provide rigorous competition within the public school
83	district to stimulate continual improvement in all public
84	schools.
85	3. Expand the capacity of the public school system.
86	(5) SPONSOR; DUTIES.--
87	(a) Sponsoring entities.--
88	1.A district school board may sponsor a charter school in
89	the county over which the district school board has
90	jurisdiction.
91	2.(b)A state university may grant a charter to a lab
92	school created under s. 1002.32 and shall be considered to be
93	the school's sponsor. Such school shall be considered a charter
94	lab school.
95	(b) Sponsor duties.--
96	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. If
112	a charter school falls short of performance measures included in
113	the approved charter, the sponsor shall report such shortcomings
114	to the Department of Education.
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 which
405	shall be compared with information provided in the annual report
406	of the charter school. The charter shall ensure that, if a
407	charter school internal audit reveals a deficit financial
408	position, the auditors are required to notify the charter school
409	governing board, the sponsor, and the Department of Education.
410	The internal auditor shall report such findings in the form of
411	an exit interview to the principal or the principal
412	administrator of the charter school and the chair of the
413	governing board within 7 working days after finding the deficit
414	position. A final report shall be provided to the entire
415	governing board, the sponsor, and the Department of Education
416	within 14 working days after the exit interview.
417	11.10.A description of procedures that identify various
418	risks and provide for a comprehensive approach to reduce the
419	impact of losses; plans to ensure the safety and security of
420	students and staff; plans to identify, minimize, and protect
421	others from violent or disruptive student behavior; and the
422	manner in which the school will be insured, including whether or
423	not the school will be required to have liability insurance,
424	and, if so, the terms and conditions thereof and the amounts of
425	coverage.
426	12.11.The term of the charter which shall provide for
427	cancellation of the charter if insufficient progress has been
428	made in attaining the student achievement objectives of the
429	charter and if it is not likely that such objectives can be
430	achieved before expiration of the charter. The initial term of a
431	charter shall be for 3, 4, or 5 years. In order to facilitate
432	access to long-term financial resources for charter school
433	construction, charter schools that are operated by a
434	municipality or other public entity as provided by law are
435	eligible for up to a 15-year charter, subject to approval by the
436	district school board. A charter lab school is eligible for a
437	charter for a term of up to 15 years. In addition, to facilitate
438	access to long-term financial resources for charter school
439	construction, charter schools that are operated by a private,
440	not-for-profit, s. 501(c)(3) status corporation are eligible for
441	up to a 10-year charter, subject to approval by the district
442	school board. Such long-term charters remain subject to annual
443	review and may be terminated during the term of the charter, but
444	only for specific good cause according to the provisions set
445	forth in subsection (8).
446	13.12.The facilities to be used and their location.
447	14.13.The qualifications to be required of the teachers
448	and the potential strategies used to recruit, hire, train, and
449	retain qualified staff to achieve best value.
450	15.14.The governance structure of the school, including
451	the status of the charter school as a public or private employer
452	as required in paragraph (12)(i).
453	16.15.A timetable for implementing the charter which
454	addresses the implementation of each element thereof and the
455	date by which the charter shall be awarded in order to meet this
456	timetable.
457	17.16.In the case of an existing public school being
458	converted to charter status, alternative arrangements for
459	current students who choose not to attend the charter school and
460	for current teachers who choose not to teach in the charter
461	school after conversion in accordance with the existing
462	collective bargaining agreement or district school board rule in
463	the absence of a collective bargaining agreement. However,
464	alternative arrangements shall not be required for current
465	teachers who choose not to teach in a charter lab school, except
466	as authorized by the employment policies of the state university
467	which grants the charter to the lab school.
468	(b) A charter may be renewed every 5 school years,
469	provided that a program review demonstrates that the criteria in
470	paragraph (a) have been successfully accomplished and that none
471	of the grounds for nonrenewal established by paragraph (8)(a)
472	has been documented. In order to facilitate long-term financing
473	for charter school construction, charter schools operating for a
474	minimum of 2 years and demonstrating exemplary academic
475	programming and fiscal management are eligible for a 15-year
476	charter renewal. Such long-term charter is subject to annual
477	review and may be terminated during the term of the charter.
478	(c) A charter may be modified during its initial term or
479	any renewal term upon the recommendation of the sponsor or the
480	charter school governing board and the approval of both parties
481	to the agreement.
482	(8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
483	(a) At the end of the term of a charter, the sponsor may
484	choose not to renew the charter for any of the following
485	grounds:
486	1. Failure to participate in the state's education
487	accountability system created in s. 1008.31, as required in this
488	section, or failure tomeet the requirements for student
489	performance stated in the charter.
490	2. Failure to meet generally accepted standards of fiscal
491	management.
492	3. Violation of law.
493	4. Other good cause shown.
494	(b) During the term of a charter, the sponsor may
495	terminate the charter for any of the grounds listed in paragraph
496	(a).
497	(c) At least 90 days prior to renewing or terminating a
498	charter, the sponsor shall notify the governing body of the
499	school of the proposed action in writing. The notice shall state
500	in reasonable detail the grounds for the proposed action and
501	stipulate that the school's governing body may, within 14
502	calendar days after receiving the notice, request an informal
503	hearing before the sponsor. The sponsor shall conduct the
504	informal hearing within 30 calendar days after receiving a
505	written request. The charter school's governing body may, within
506	14 calendar days after receiving the sponsor's decision to
507	terminate or refuse to renew the charter, appeal the decision
508	pursuant to the procedure established in subsection (6).
509	(d) A charter may be terminated immediately if the sponsor
510	determines that good cause has been shown or if the health,
511	safety, or welfare of the students is threatened. The school
512	district in which the charter school is located shall assume
513	operation of the school under these circumstances. The charter
514	school's governing board may, within 14 days after receiving the
515	sponsor's decision to terminate the charter, appeal the decision
516	pursuant to the procedure established in subsection (6).
517	(e) When a charter is not renewed or is terminated, the
518	school shall be dissolved under the provisions of law under
519	which the school was organized, and any unencumbered public
520	funds from the charter school shall revert to the district
521	school board. In the event a charter school is dissolved or is
522	otherwise terminated, all district school board property and
523	improvements, furnishings, and equipment purchased with public
524	funds shall automatically revert to full ownership by the
525	district school board, subject to complete satisfaction of any
526	lawful liens or encumbrances. Any unencumbered public funds from
527	the charter school, district school board property and
528	improvements, furnishings, and equipment purchased with public
529	funds, or financial or other records pertaining to the charter
530	school, in the possession of any person, entity, or holding
531	company, other than the charter school, shall be held in trust
532	upon the district school board's request, until any appeal
533	status is resolved.
534	(f) If a charter is not renewed or is terminated, the
535	charter school is responsible for all debts of the charter
536	school. The district may not assume the debt from any contract
537	for services made between the governing body of the school and a
538	third party, except for a debt that is previously detailed and
539	agreed upon in writing by both the district and the governing
540	body of the school and that may not reasonably be assumed to
541	have been satisfied by the district.
542	(g) If a charter is not renewed or is terminated, a
543	student who attended the school may apply to, and shall be
544	enrolled in, another public school. Normal application deadlines
545	shall be disregarded under such circumstances.
546	(9) CHARTER SCHOOL REQUIREMENTS.--
547	(a) A charter school shall be nonsectarian in its
548	programs, admission policies, employment practices, and
549	operations.
550	(b) A charter school shall admit students as provided in
551	subsection (10).
552	(c) A charter school shall be accountable to its sponsor
553	for performance as provided in subsection (7).
554	(d) A charter school shall not charge tuition or
555	registration fees, except those fees normally charged by other
556	public schools. However, a charter lab school may charge a
557	student activity and service fee as authorized by s. 1002.32(5).
558	(e) A charter school shall meet all applicable state and
559	local health, safety, and civil rights requirements.
560	(f) A charter school shall not violate the
561	antidiscrimination provisions of s. 1000.05.
562	(g) A charter school shall provide for an annual financial
563	audit in accordance with s. 218.39.
564	(h) No organization shall hold more than 15 charters
565	statewide.
566	(i) In order to provide financial information that is
567	comparable to that reported for other public schools, charter
568	schools are to maintain all financial records which constitute
569	their accounting system:
570	1. In accordance with the accounts and codes prescribed in
571	the most recent issuance of the publication titled "Financial
572	and Program Cost Accounting and Reporting for Florida Schools";
573	or
574	2. At the discretion of the charter school governing
575	board, a charter school may elect to follow generally accepted
576	accounting standards for not-for-profit organizations, but must
577	reformat this information for reporting according to this
578	paragraph.
579
580	Charter schools are to provide annual financial report and
581	program cost report information in the state-required formats
582	for inclusion in district reporting in compliance with s.
583	1011.60(1). Charter schools that are operated by a municipality
584	or are a component unit of a parent nonprofit organization may
585	use the accounting system of the municipality or the parent but
586	must reformat this information for reporting according to this
587	paragraph.
588	(j) The governing board of the charter school shall
589	annually adopt and maintain an operating budget.
590	(k) The governing body of the charter school shall
591	exercise continuing oversight over charter school operations and
592	make annual progress reports to its sponsor, which upon
593	verification shall be forwarded to the Commissioner of Education
594	at the same time as other annual school accountability reports.
595	The report shall contain at least the following information:
596	(l) The governing body of the charter school shall report
597	its progress annually to its sponsor, which shall forward the
598	report to the Commissioner of Education at the same time as
599	other annual school accountability reports. The Department of
600	Education shall include in its compilation a notation if a
601	school failed to file its report by the deadline established by
602	the department. The report shall include at least the following
603	components:
604	1. Student achievement performance data, including the
605	information required for the annual school report and the
606	education accountability system governed by ss. 1008.31 and
607	1008.345. Charter schools are subject to the same accountability
608	requirements as other public schools, including reports of
609	student achievement information that links baseline student data
610	to the school’s performance projections identified in the
611	charter. The charter school shall identify reasons for any
612	difference between projected and actual student performanceThe
613	charter school's progress toward achieving the goals outlined in
614	its charter.
615	2. Financial status of the charter school which must
616	include revenues and expenditures at a level of detail that
617	allows for analysis of the ability to meet financial obligations
618	and timely repayment of debtThe information required in the
619	annual school report pursuant to s. 1008.345.
620	3. Documentation of the facilities in current use and any
621	planned facilities for use by the charter school for instruction
622	of students, administrative functions, or investment purposes
623	Financial records of the charter school, including revenues and
624	expenditures.
625	4. Descriptive information about the charter school's
626	personnel, includingsalary and benefit levels of charter school
627	employees, the proportion of instructional personnel who hold
628	professional or temporary certificates, and the proportion of
629	instructional personnel teaching in-field or out-of-field.
630	(m)(l)A charter school shall not levy taxes or issue
631	bonds secured by tax revenues.
632	(n)(m)A charter school shall provide instruction for at
633	least the number of days required by law for other public
634	schools, and may provide instruction for additional days.
635	(10) ELIGIBLE STUDENTS.--
636	(a) A charter school shall be open to any student covered
637	in an interdistrict agreement or residing in the school district
638	in which the charter school is located; however, in the case of
639	a charter lab school, the charter lab school shall be open to
640	any student eligible to attend the lab school as provided in s.
641	1002.32 or who resides in the school district in which the
642	charter lab school is located. Any eligible student shall be
643	allowed interdistrict transfer to attend a charter school when
644	based on good cause.
645	(b) The charter school shall enroll an eligible student
646	who submits a timely application, unless the number of
647	applications exceeds the capacity of a program, class, grade
648	level, or building. In such case, all applicants shall have an
649	equal chance of being admitted through a random selection
650	process.
651	(c) When a public school converts to charter status,
652	enrollment preference shall be given to students who would have
653	otherwise attended that public school.
654	(d) A charter school may give enrollment preference to the
655	following student populations:
656	1. Students who are siblings of a student enrolled in the
657	charter school.
658	2. Students who are the children of a member of the
659	governing board of the charter school.
660	3. Students who are the children of an employee of the
661	charter school.
662	(e) A charter school may limit the enrollment process only
663	to target the following student populations:
664	1. Students within specific age groups or grade levels.
665	2. Students considered at risk of dropping out of school
666	or academic failure. Such students shall include exceptional
667	education students.
668	3. Students enrolling in a charter school-in-the-workplace
669	or charter school-in-a-municipality established pursuant to
670	subsection (15)(16).
671	4. Students residing within a reasonable distance of the
672	charter school, as described in paragraph (20)(21)(c). Such
673	students shall be subject to a random lottery and to the
674	racial/ethnic balance provisions described in subparagraph
675	(7)(a)8. or any federal provisions that require a school to
676	achieve a racial/ethnic balance reflective of the community it
677	serves or within the racial/ethnic range of other public schools
678	in the same school district.
679	5. Students who meet reasonable academic, artistic, or
680	other eligibility standards established by the charter school
681	and included in the charter school application and charter or,
682	in the case of existing charter schools, standards that are
683	consistent with the school's mission and purpose. Such standards
684	shall be in accordance with current state law and practice in
685	public schools and may not discriminate against otherwise
686	qualified individuals.
687	6. Students articulating from one charter school to
688	another pursuant to an articulation agreement between the
689	charter schools that has been approved by the sponsor.
690	(f) Students with handicapping conditions and students
691	served in English for Speakers of Other Languages programs shall
692	have an equal opportunity of being selected for enrollment in a
693	charter school.
694	(g) A student may withdraw from a charter school at any
695	time and enroll in another public school as determined by
696	district school board rule.
697	(h) The capacity of the charter school shall be determined
698	annually by the governing board, in conjunction with the
699	sponsor, of the charter school in consideration of the factors
700	identified in this subsection.
701	(13) NUMBER OF SCHOOLS.--
702	(a) The number of newly created charter schools is limited
703	to no more than 28 in each school district that has 100,000 or
704	more students, no more than 20 in each school district that has
705	50,000 to 99,999 students, and no more than 12 in each school
706	district with fewer than 50,000 students.
707	(b) An existing public school which converts to a charter
708	school shall not be counted toward the limit established by
709	paragraph (a).
710	(c) Notwithstanding any limit established by this
711	subsection, a district school board or a charter school
712	applicant shall have the right to request an increase of the
713	limit on the number of charter schools authorized to be
714	established within the district from the State Board of
715	Education.
716	(d) Whenever a municipality has submitted charter
717	applications for the establishment of a charter school feeder
718	pattern (elementary, middle, and senior high schools), and upon
719	approval of each individual charter application by the district
720	school board, such applications shall then be designated as one
721	charter school for all purposes listed pursuant to this section.
722	(20)(21)SERVICES.--
723	(a) A sponsor shall provide certain administrative and
724	educational services to charter schools. These services shall
725	include contract management services, full-time equivalent and
726	data reporting services, exceptional student education
727	administration services, test administration services,
728	processing of teacher certificate data services, and information
729	services. A total administrative fee for the provision of such
730	services shall be calculated based upon 5 percent of the
731	available funds defined in paragraph (17)(b) for all students.
732	However, a sponsor may only withhold a 5-percent administrative
733	fee for enrollment for up to 500 students. For charter schools
734	with a population of 500 or more students, the difference
735	between the total administrative fee calculation and the amount
736	of the administrative fee withheld may only be used for capital
737	outlay purposes specified in s. 1013.62(2)Any administrative
738	fee charged by the sponsor for the provision of services shall
739	be limited to 5 percent of the available funds defined in
740	paragraph (18)(b).
741	(b) If goods and services are made available to the
742	charter school through the contract with the school district,
743	they shall be provided to the charter school at a rate no
744	greater than the district's actual cost. To maximize the use of
745	state funds, school districts shall allow charter schools to
746	participate in the sponsor's bulk purchasing program if
747	applicable.
748	(c) Transportation of charter school students shall be
749	provided by the charter school consistent with the requirements
750	of subpart I.e. of chapter 1006. The governing body of the
751	charter school may provide transportation through an agreement
752	or contract with the district school board, a private provider,
753	or parents. The charter school and the sponsor shall cooperate
754	in making arrangements that ensure that transportation is not a
755	barrier to equal access for all students residing within a
756	reasonable distance of the charter school as determined in its
757	charter.
758	(23)(24)ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon
759	receipt of the annual report required by paragraph (9)(l)(9)(k),
760	the Department of Education shall provide to the State Board of
761	Education, the Commissioner of Education, the Governor,the
762	President of the Senate, and the Speaker of the House of
763	Representatives an analysis and comparison of the overall
764	performance of charter school students, to include all students
765	whose scores are counted as part of the statewide assessment
766	program, versus comparable public school students in the
767	district as determined by the statewide assessment program
768	currently administered in the school district, and other
769	assessments administered pursuant to s. 1008.22(3).
770	Section 2. Subsection (2) and paragraphs (a), (c), and (h)
771	of subsection (9) of section 1002.32, Florida Statutes, are
772	amended to read:
773	1002.32 Developmental research (laboratory) schools.--
774	(2) ESTABLISHMENT.--There is established a category of
775	public schools to be known as developmental research
776	(laboratory) schools (lab schools). Each lab school shall
777	provide sequential instruction and shall be affiliated with the
778	college of education within the state university of closest
779	geographic proximity. A lab school to which a charter has been
780	issued under s. 1002.33(5)(a)2.(5)(b)must be affiliated with
781	the college of education within the state university that issued
782	the charter, but is not subject to the requirement that the
783	state university be of closest geographic proximity. For the
784	purpose of state funding, Florida Agricultural and Mechanical
785	University, Florida Atlantic University, Florida State
786	University, the University of Florida, and other universities
787	approved by the State Board of Education and the Legislature are
788	authorized to sponsor a lab schoolone or more lab schools. The
789	limitation of one lab school per university shall not apply to
790	the following charter lab schools authorized prior to June 1,
791	2003: Florida State University Charter Lab Elementary School in
792	Broward County, Florida Atlantic University Charter Lab 9-12
793	High School in Palm Beach County, and Florida Atlantic
794	University Charter Lab K-12 School in St. Lucie County.
795	(9) FUNDING.--Funding for a lab school, including a
796	charter lab school, shall be provided as follows:
797	(a) Each lab school shall be allocated its proportional
798	share of operating funds from the Florida Education Finance
799	Program as provided in s. 1011.62 and the General Appropriations
800	Act. The nonvoted ad valorem millage that would otherwise be
801	required for lab schools in operation as of September 1, 2002,
802	shall be allocated from state funds. The required local effort
803	funds calculated pursuant to s. 1011.62 shall be allocated from
804	state funds for labto the schools in operation as of September
805	1, 2002,as a part of the allocation of operating funds pursuant
806	to s. 1011.62. Each eligible lab school in operation as of
807	September 1, 2002,shall also receive a proportional share of
808	the sparsity supplement as calculated pursuant to s. 1011.62. In
809	addition, each lab school shall receive its proportional share
810	of all categorical funds, with the exception of s. 1011.68, and
811	new categorical funds enacted after July 1, 1994, for the
812	purpose of elementary or secondary academic program enhancement.
813	The sum of funds available as provided in this paragraph shall
814	be included annually in the Florida Education Finance Program
815	and appropriate categorical programs funded in the General
816	Appropriations Act.
817	(c) All operating funds provided under this section shall
818	be deposited in a Lab School Trust Fund and shall be expended
819	for the purposes of this section. The university assigned a lab
820	school shall be the fiscal agent for these funds, and all rules
821	of the university governing the budgeting and expenditure of
822	state funds shall apply to these funds unless otherwise provided
823	by law or rule of the State Board of Education. The university
824	board of trustees shall be the public employer of lab school
825	personnel for collective bargaining purposes for lab schools in
826	operation prior to the 2002-2003 fiscal year. Employees of
827	charter lab schools authorized prior to June 1, 2003, but not in
828	operation prior to the 2002-2003 fiscal year shall be employees
829	of the entity holding the charter and must comply with the
830	provisions of s. 1002.33(12).
831	(h) A lab school to which a charter has been issued under
832	s. 1002.33(5)(a)2.(5)(b)is eligible to receive funding for
833	charter school capital outlay if it meets the eligibility
834	requirements of s. 1013.62. If the lab school receives funds
835	from charter school capital outlay, the school shall receive
836	capital outlay funds otherwise provided in this subsection only
837	to the extent that funds allocated pursuant to s. 1013.62 are
838	insufficient to provide capital outlay funds to the lab school
839	at one-fifteenth of the cost per student station.
840	Section 3. Section 1011.68, Florida Statutes, is amended
841	to read:
842	1011.68 Funds for student transportation.--The annual
843	allocation to each district for transportation to public school
844	programs, including charter schools as provided in s.
845	1002.33(17)(18)(b), of students in membership in kindergarten
846	through grade 12 and in migrant and exceptional student programs
847	below kindergarten shall be determined as follows:
848	(1) Subject to the rules of the State Board of Education,
849	each district shall determine the membership of students who are
850	transported:
851	(a) By reason of living 2 miles or more from school.
852	(b) By reason of being students with disabilities or
853	enrolled in a teenage parent program, regardless of distance to
854	school.
855	(c) By reason of being in a state prekindergarten program,
856	regardless of distance from school.
857	(d) By reason of being career and technical, dual
858	enrollment, or students with disabilities transported from one
859	school center to another to participate in an instructional
860	program or service; or students with disabilities, transported
861	from one designation to another in the state, provided one
862	designation is a school center and provided the student's
863	individual educational plan (IEP) identifies the need for the
864	instructional program or service and transportation to be
865	provided by the school district. A "school center" is defined as
866	a public school center, community college, state university, or
867	other facility rented, leased, or owned and operated by the
868	school district or another public agency. A "dual enrollment
869	student" is defined as a public school student in membership in
870	both a public secondary school program and a community college
871	or a state university program under a written agreement to
872	partially fulfill ss. 1003.435 and 1007.23 and earning full-time
873	equivalent membership under s. 1011.62(1)(i).
874	(e) With respect to elementary school students whose grade
875	level does not exceed grade 6, by reason of being subjected to
876	hazardous walking conditions en route to or from school as
877	provided in s. 1006.23. Such rules shall, when appropriate,
878	provide for the determination of membership under this paragraph
879	for less than 1 year to accommodate the needs of students who
880	require transportation only until such hazardous conditions are
881	corrected.
882	(f) By reason of being a pregnant student or student
883	parent, and the child of a student parent as provided in s.
884	1003.54, regardless of distance from school.
885	(2) The allocation for each district shall be calculated
886	annually in accordance with the following formula:
887
888	T = B + EX. The elements of this formula are defined as follows:
889	T is the total dollar allocation for transportation. B is the
890	base transportation dollar allocation prorated by an adjusted
891	student membership count. The adjusted membership count shall be
892	derived from a multiplicative index function in which the base
893	student membership is adjusted by multiplying it by index
894	numbers that individually account for the impact of the price
895	level index, average bus occupancy, and the extent of rural
896	population in the district. EX is the base transportation dollar
897	allocation for disabled students prorated by an adjusted
898	disabled student membership count. The base transportation
899	dollar allocation for disabled students is the total state base
900	disabled student membership count weighted for increased costs
901	associated with transporting disabled students and multiplying
902	it by the prior year's average per student cost for
903	transportation. The adjusted disabled student membership count
904	shall be derived from a multiplicative index function in which
905	the weighted base disabled student membership is adjusted by
906	multiplying it by index numbers that individually account for
907	the impact of the price level index, average bus occupancy, and
908	the extent of rural population in the district. Each adjustment
909	factor shall be designed to affect the base allocation by no
910	more or less than 10 percent.
911	(3) The total allocation to each district for
912	transportation of students shall be the sum of the amounts
913	determined in subsection (2). If the funds appropriated for the
914	purpose of implementing this section are not sufficient to pay
915	the base transportation allocation and the base transportation
916	allocation for disabled students, the Department of Education
917	shall prorate the available funds on a percentage basis. If the
918	funds appropriated for the purpose of implementing this section
919	exceed the sum of the base transportation allocation and the
920	base transportation allocation for disabled students, the base
921	transportation allocation for disabled students shall be limited
922	to the amount calculated in subsection (2), and the remaining
923	balance shall be added to the base transportation allocation.
924	(4) No district shall use funds to purchase transportation
925	equipment and supplies at prices which exceed those determined
926	by the department to be the lowest which can be obtained, as
927	prescribed in s. 1006.27(1).
928	(5) Funds allocated or apportioned for the payment of
929	student transportation services may be used to pay for
930	transportation of students to and from school on local general
931	purpose transportation systems. Student transportation funds may
932	also be used to pay for transportation of students to and from
933	school in private passenger cars and boats when the
934	transportation is for isolated students, or students with
935	disabilities as defined by rule. Subject to the rules of the
936	State Board of Education, each school district shall determine
937	and report the number of assigned students using general purpose
938	transportation private passenger cars and boats. The allocation
939	per student must be equal to the allocation per student riding a
940	school bus.
941	(6) Notwithstanding other provisions of this section, in
942	no case shall any student or students be counted for
943	transportation funding more than once per day. This provision
944	includes counting students for funding pursuant to trips in
945	school buses, passenger cars, or boats or general purpose
946	transportation.
947	(7) Any funds received by a school district under this
948	section that are not required to transport students may, at the
949	discretion of the district school board, be transferred to the
950	district's Florida Education Finance Program.
951	Section 4. Subsections (1), (2), and (5) of section
952	1013.62, Florida Statutes, are amended to read:
953	1013.62 Charter schools capital outlay funding.--
954	(1) In each year in which funds are appropriated for
955	charter school capital outlay purposes, the Commissioner of
956	Education shall allocate the funds among eligible charter
957	schools. To be eligible for a funding allocation, a charter
958	school must:
959	(a)1. Have been in operation for 3 or more years;
960	2. Be an expanded feeder chain of a charter school within
961	the same school district that is currently receiving charter
962	school capital outlay funds; or
963	3. Have been accredited by the Commission on Schools of
964	the Southern Association of Colleges and Schools.
965	(b) Have financial stability for future operation as a
966	charter school.
967	(c) Have satisfactory student achievement based on state
968	accountability standards applicable to the charter school.
969	(d) Have received final approval from its sponsor pursuant
970	to s. 1002.33 for operation during that fiscal year.
971	(e) Serve students in facilities that are not provided by
972	the charter school's sponsormeet the provisions of subsection
973	(6),
974	must have received final approval from its sponsor pursuant to
975	s. 1002.33 for operation during that fiscal year, and must serve
976	students in facilities that are not provided by the charter
977	school's sponsor.
978
979	Prior to the release of capital outlay funds to a school
980	district on behalf of the charter school, the Department of
981	Education shall ensure that the district school board and the
982	charter school governing board enter into a written agreement
983	that includes provisions for the reversion of any unencumbered
984	funds and all equipment and property purchased with public
985	education funds to the ownership of the district school board,
986	as provided for in subsection (3), in the event that the school
987	terminates operations. Any funds recovered by the state shall be
988	deposited in the General Revenue Fund. A charter school is not
989	eligible for a funding allocation if it was created by the
990	conversion of a public school and operates in facilities
991	provided by the charter school's sponsor for a nominal fee or at
992	no charge or if it is directly or indirectly operated by the
993	school district. Unless otherwise provided in the General
994	Appropriations Act, the funding allocation for each eligible
995	charter school shall be determined by multiplying the school's
996	projected student enrollment by one-fifteenth of the cost-per-
997	student station specified in s. 1013.64(6)(b) for an elementary,
998	middle, or high school, as appropriate. If the funds
999	appropriated are not sufficient, the commissioner shall prorate
1000	the available funds among eligible charter schools. However, no
1001	charter school or charter lab school shall receive state charter
1002	school capital outlay funds in excess of the one-fifteenth cost
1003	per student station formula if the charter school’s combination
1004	of state charter school capital outlay funds, capital outlay
1005	funds calculated through the reduction in the administrative fee
1006	provided in s. 1002.33(20), and capital outlay funds allowed in
1007	s. 1002.32(9)(e) and (h) exceeds the one-fifteenth cost per
1008	student station formula.Funds shall be distributed on the basis
1009	of the capital outlay full-time equivalent membership by grade
1010	level, which shall be calculated by averaging the results of the
1011	second and third enrollment surveys. The Department of Education
1012	shall distribute capital outlay funds monthly, beginning in the
1013	first quarter of the fiscal year, based on one-twelfth of the
1014	amount the department reasonably expects the charter school to
1015	receive during that fiscal year. The commissioner shall adjust
1016	subsequent distributions as necessary to reflect each charter
1017	school's actual student enrollment as reflected in the second
1018	and third enrollment surveys. The commissioner shall establish
1019	the intervals and procedures for determining the projected and
1020	actual student enrollment of eligible charter schools.
1021	(2) A charter school's governing body may use charter
1022	school capital outlay funds for the following purposesany
1023	capital outlay purpose that is directly related to the
1024	functioning of the charter school, including the:
1025	(a) Purchase of real property.
1026	(b) Construction, renovation, repair, and maintenanceof
1027	school facilities.
1028	(c) Purchase, lease-purchase, or lease of permanent or
1029	relocatable school facilities.
1030	(d) Purchase of vehicles to transport students to and from
1031	the charter school.
1032	(e) Renovation, repair, and maintenance of school
1033	facilities that the charter school owns or is purchasing through
1034	a lease-purchase or long-term lease of 5 years or longer.
1035
1036	Conversion charter schools may use capital outlay funds received
1037	through the reduction in the administrative fee provided in s.
1038	1002.33(20) for renovation, repair, and maintenance of school
1039	facilities that are owned by the sponsor.
1040	(3) When a charter school is nonrenewed or terminated, any
1041	unencumbered funds and all equipment and property purchased with
1042	district public funds shall revert to the ownership of the
1043	district school board, as provided for in s. 1002.33(8)(e) and
1044	(f). In the case of a charter lab school, any unencumbered funds
1045	and all equipment and property purchased with university public
1046	funds shall revert to the ownership of the state university that
1047	issued the charter. The reversion of such equipment, property,
1048	and furnishings shall focus on recoverable assets, but not on
1049	intangible or irrecoverable costs such as rental or leasing
1050	fees, normal maintenance, and limited renovations. The reversion
1051	of all property secured with public funds is subject to the
1052	complete satisfaction of all lawful liens or encumbrances. If
1053	there are additional local issues such as the shared use of
1054	facilities or partial ownership of facilities or property, these
1055	issues shall be agreed to in the charter contract prior to the
1056	expenditure of funds.
1057	(4) The Commissioner of Education shall specify procedures
1058	for submitting and approving requests for funding under this
1059	section and procedures for documenting expenditures.
1060	(5) The annual legislative budget request of the
1061	Department of Education shall include a request for capital
1062	outlay funding for charter schools. The request shall be based
1063	on the projected number of students to be served in charter
1064	schools who meet the eligibility requirements of this section. A
1065	dedicated funding source, if identified in writing by the
1066	Commissioner of Education and submitted along with the annual
1067	charter school legislative budget request, may be considered an
1068	additional source of funding.
1069	(6) Unless authorized otherwise by the Legislature,
1070	allocation and proration of charter school capital outlay funds
1071	shall be made to eligible charter schools by the Commissioner of
1072	Education in an amount and in a manner authorized by subsection
1073	(1).
1074	(7) Notwithstanding the provisions of this section,
1075	beginning in the 2003-2004 fiscal year:
1076	(a) If the appropriation for charter school capital outlay
1077	funds is no greater than the 2002-2003 appropriation, the funds
1078	shall be allocated according to the formula outlined in
1079	subsection (1) to:
1080	1. The same schools that received funding in 2002-2003.
1081	2. Schools that are an expanded feeder pattern of schools
1082	that received funding in 2002-2003.
1083	3. Schools that have an approved charter and are serving
1084	students at the start of the 2003-2004 school year and either
1085	incurred long-term financial obligations prior to January 31,
1086	2003, or began construction on educational facilities prior to
1087	December 31, 2002.
1088	(b) If the appropriation for charter school capital outlay
1089	funds is less than the 2002-2003 appropriation, the funds shall
1090	be prorated among the schools eligible in paragraph (a).
1091	(c) If the appropriation for charter school capital outlay
1092	funds is greater than the 2002-2003 appropriation, the amount of
1093	funds provided in the 2002-2003 appropriation shall be allocated
1094	according to paragraph (a). First priority for allocating the
1095	amount in excess of the 2002-2003 appropriation shall be to
1096	prorate the excess funds among the charter schools with long-
1097	term debt or long-term lease to the extent that the initial
1098	allocation is insufficient to provide one-fifteenth of the cost
1099	per student station specified in s. 1013.64(6)(b), and second
1100	priority shall be to other eligible charter schools.
1101	Section 5. This act shall take effect September 1, 2003.