Senate Bill sb2242

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    Florida Senate - 2003                                  SB 2242

    By Senator Webster





    9-1319A-03                                         See HB 1279

  1                      A bill to be entitled

  2         An act relating to charter schools; amending s.

  3         1002.33, F.S.; providing guiding principles;

  4         requiring an emphasis on reading; authorizing a

  5         state university or community college to

  6         sponsor a charter school; requiring certain

  7         accountability measures; revising application

  8         requirements; requiring fiscal projections in a

  9         charter application; extending the time allowed

10         for the State Board of Education to act on an

11         appeal; requiring auditors to provide

12         notification of certain financial conditions;

13         providing additional requirements for a charter

14         school's annual report; eliminating limitations

15         on the number of charter schools per school

16         district; creating the Charter School

17         Accountability and Funding Authority and

18         providing purpose, composition, and duties;

19         eliminating a review panel; revising provisions

20         relating to the analysis of charter school

21         performance; amending s. 1002.32, F.S.;

22         correcting cross-references; amending s.

23         1013.62, F.S.; requiring the Charter School

24         Accountability and Funding Authority to

25         recommend allocations of capital outlay funds

26         to charter schools; providing priorities;

27         eliminating a formula for providing

28         allocations; providing an effective date.

29  

30         WHEREAS, in the 2002-2003 school year, Florida has 223

31  charter schools educating approximately 51,000 Florida

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  students, with a projected increase of 117 additional charter

 2  schools in the next school year, and

 3         WHEREAS, this rate of growth is a dramatic increase

 4  over the prior averages of 36 charter schools per year, and

 5         WHEREAS, while charter schools are public schools,

 6  their unique populations or small size mean that few of them

 7  are eligible for inclusion in the state's accountability

 8  system, with only 38 of the 173 charter schools receiving a

 9  school performance grade in 2002, and

10         WHEREAS, the issue of charter school accountability is

11  of the utmost importance at this time of budget constraints

12  and heightened awareness of public ethics, NOW, THEREFORE,

13  

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

15  

16         Section 1.  Subsections (2), (5), (6), (7), (8), (9),

17  (13), (23), and (24) of section 1002.33, Florida Statutes, are

18  amended to read:

19         1002.33  Charter schools.--

20         (2)  GUIDING PRINCIPLES; PURPOSE.--

21         (a)  Charter schools in Florida shall be guided by the

22  following principles:

23         1.  Meet high standards of student achievement while

24  providing parents flexibility to choose among diverse

25  educational opportunities within the state's public school

26  system.

27         2.  Promote enhanced academic success and financial

28  efficiency by aligning responsibility with accountability.

29         3.  Provide parents with sufficient information on

30  whether their child is reading at grade level and whether the

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  child gains at least a year's worth of learning for every year

 2  spent in the charter school.

 3         (b)(a)  Charter schools shall fulfill the following

 4  purposes:

 5         1.  Improve student learning and academic achievement.

 6         2.  Increase learning opportunities for all students,

 7  with special emphasis on low-performing students and reading.

 8         3.  Create new professional opportunities for teachers,

 9  including ownership of the learning program at the school

10  site.

11         4.  Encourage the use of innovative learning methods.

12         5.  Require the measurement of learning outcomes.

13         (c)(b)  Charter schools may fulfill the following

14  purposes:

15         1.  Create innovative measurement tools.

16         2.  Provide rigorous competition within the public

17  school district to stimulate continual improvement in all

18  public schools.

19         3.  Expand the capacity of the public school system.

20         (5)  SPONSOR.--

21         (a)  A district school board may sponsor a charter

22  school in the county over which the district school board has

23  jurisdiction.

24         (b)  A community college may sponsor a charter school,

25  within each community college district, on its own or in

26  partnership with an independent postsecondary educational

27  institution.

28         (c)(b)  A state university may sponsor a charter school

29  on its own or in partnership with an independent postsecondary

30  educational institution. A state university may grant a

31  charter to a lab school created under s. 1002.32 and shall be

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  considered to be the school's sponsor. Such school shall be

 2  considered a charter lab school.

 3         (d)  If a state university or a community college

 4  sponsors a charter school that offers secondary education, it

 5  must provide an option to receive an associate degree.

 6         (e)(c)  The sponsor shall monitor and review the

 7  charter school in its progress toward the goals established in

 8  the charter.

 9         (f)(d)  The sponsor shall monitor the revenues and

10  expenditures of the charter school.

11         (g)(e)  The sponsor may approve a charter for a charter

12  school before the applicant has secured space, equipment, or

13  personnel, if the applicant indicates approval is necessary

14  for it to raise working capital.

15         (h)(f)  The sponsor's policies shall not apply to a

16  charter school.

17         (i)(g)  A sponsor shall ensure that the charter is

18  innovative and consistent with the state education goals

19  established by s. 1000.03(5).

20         (j)  The sponsor shall ensure that the charter school

21  participates in the state's education accountability system

22  and shall use appropriate interventions and sanctions if a

23  charter school falls short of performance measures included in

24  the approved charter.

25         (6)  APPLICATION PROCESS AND REVIEW.--Beginning

26  September 1, 2003, applications are subject to the following

27  requirements:

28         (a)  A person or entity wishing to open a charter

29  school shall prepare an application that:

30  

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1         1.  Demonstrates how the school will use the guiding

 2  principles and meet the statutorily defined purpose of a

 3  charter school.

 4         2.  Provides a detailed curriculum plan that

 5  illustrates how students will be provided services to attain

 6  the Sunshine State Standards.

 7         3.  Contains goals and objectives for improving student

 8  learning and measuring that improvement. These goals and

 9  objectives must indicate how much academic improvement

10  students are expected to show each year, how success will be

11  evaluated, and the specific results to be attained through

12  instruction.

13         4.  Describes the reading curriculum and differentiated

14  strategies that will be used for students reading at grade

15  level or higher and a separate curriculum and strategies for

16  students who are reading below grade level. A sponsor shall

17  deny a charter if the school does not propose a reading

18  curriculum that is consistent with effective teaching

19  strategies that are grounded in scientifically based reading

20  research.

21         5.  Contains an annual financial plan for each year

22  requested by the charter for operation of the school for up to

23  5 years. This plan must contain anticipated fund balances

24  based on revenue projections, a spending plan based on

25  projected revenues and expenses, and a description of controls

26  that will safeguard finances and projected enrollment trends.

27         (b)(a)  A district school board, university board of

28  trustees, or community college board of trustees shall receive

29  and review all applications for a charter school. The sponsor

30  A district school board shall receive and consider charter

31  school applications received on or before October 1 of each

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  calendar year for charter schools to be opened at the

 2  beginning of the school district's next school year, or to be

 3  opened at a time agreed to by the applicant and the sponsor

 4  district school board. A sponsor district school board may

 5  receive applications later than this date if it chooses. A

 6  sponsor may not charge an applicant for a charter any fee for

 7  the processing or consideration of an application, and a

 8  sponsor may not base its consideration or approval of an

 9  application upon the promise of future payment of any kind.

10         1.  In order to facilitate an accurate budget

11  projection process, a district school board shall be held

12  harmless for FTE students who are not included in the FTE

13  projection due to approval of charter school applications

14  after the FTE projection deadline. In a further effort to

15  facilitate an accurate budget projection, within 15 calendar

16  days after receipt of a charter school application, a district

17  school board or other sponsor shall report to the Department

18  of Education the name of the applicant entity, the proposed

19  charter school location, and its projected FTE.

20         2.  In order to ensure fiscal responsibility, an

21  application for a charter school shall include a full

22  accounting of expected assets, a projection of expected

23  sources and amounts of income, including income derived from

24  projected student enrollments and from community support, and

25  an expense projection that includes full accounting of the

26  costs of operation, including start-up costs.

27         3.2.  The sponsor A district school board shall by a

28  majority vote approve or deny an application no later than 60

29  calendar days after the application is received, unless the

30  sponsor district school board and the applicant mutually agree

31  to temporarily postpone the vote to a specific date, at which

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  time the sponsor district school board shall by a majority

 2  vote approve or deny the application. If the sponsor district

 3  school board fails to act on the application, an applicant may

 4  appeal to the State Board of Education as provided in

 5  paragraph (c)(b). If an application is denied, the sponsor

 6  district school board shall, within 10 calendar days,

 7  articulate in writing the specific reasons based upon good

 8  cause supporting its denial of the charter application.

 9         4.3.  For budget projection purposes, the district

10  school board or other sponsor shall report to the Department

11  of Education the approval or denial of a charter application

12  within 10 calendar days after such approval or denial. In the

13  event of approval, the report to the Department of Education

14  shall include the final projected FTE for the approved charter

15  school.

16         5.4.  Upon approval of a charter application, the

17  initial startup shall commence with the beginning of the

18  public school calendar for the district in which the charter

19  is granted unless the sponsor district school board allows a

20  waiver of this provision for good cause.

21         (c)(b)  An applicant may appeal any denial of that

22  applicant's application or failure to act on an application to

23  the State Board of Education no later than 30 calendar days

24  after receipt of the sponsor's district school board's

25  decision or failure to act and shall notify the sponsor

26  district school board of its appeal. Any response by the

27  sponsor of the district school board shall be submitted to the

28  State Board of Education within 30 calendar days after

29  notification of the appeal. Upon receipt of notification from

30  the State Board of Education that a charter school applicant

31  is filing an appeal, the Commissioner of Education shall

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  convene a meeting of the Charter School Appeal Commission to

 2  study and make recommendations to the State Board of Education

 3  regarding its pending decision about the appeal. The

 4  commission shall forward its recommendation to the state board

 5  no later than 7 calendar days prior to the date on which the

 6  appeal is to be heard. The State Board of Education shall by

 7  majority vote accept or reject the decision of the sponsor

 8  district school board no later than 90 60 calendar days after

 9  an appeal is filed in accordance with State Board of Education

10  rule. The Charter School Appeal Commission may reject an

11  appeal submission for failure to comply with procedural rules

12  governing the appeals process. The rejection shall describe

13  the submission errors. The appellant may have up to 15

14  calendar days from notice of rejection to resubmit an appeal

15  that meets requirements of State Board of Education rule. An

16  application for appeal submitted subsequent to such rejection

17  shall be considered timely if the original appeal was filed

18  within 30 calendar days after receipt of notice of the

19  specific reasons for the district school board's denial of the

20  charter application. The State Board of Education shall remand

21  the application to the sponsor district school board with its

22  written decision that the sponsor district school board

23  approve or deny the application. The sponsor district school

24  board shall implement the decision of the State Board of

25  Education. The decision of the State Board of Education is not

26  subject to the provisions of the Administrative Procedure Act,

27  chapter 120.

28         (d)(c)  The sponsor district school board shall act

29  upon the decision of the State Board of Education within 30

30  calendar days after it is received. The State Board of

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  Education's decision is a final action subject to judicial

 2  review.

 3         (e)(d)1.  A Charter School Appeal Commission is

 4  established to assist the commissioner and the State Board of

 5  Education with a fair and impartial review of appeals by

 6  applicants whose charters have been denied or whose charter

 7  contracts have not been renewed by their sponsors.

 8         2.  The Charter School Appeal Commission may receive

 9  copies of the appeal documents forwarded to the State Board of

10  Education, review the documents, gather other applicable

11  information regarding the appeal, and make a written

12  recommendation to the commissioner. The recommendation must

13  state whether the appeal should be upheld or denied and

14  include the reasons for the recommendation being offered. The

15  commissioner shall forward the recommendation to the State

16  Board of Education no later than 7 calendar days prior to the

17  date on which the appeal is to be heard. The state board must

18  consider the commission's recommendation in making its

19  decision, but is not bound by the recommendation. The decision

20  of the Charter School Appeal Commission is not subject to the

21  provisions of the Administrative Procedure Act, chapter 120.

22         3.  The commissioner shall appoint the members of the

23  Charter School Appeal Commission. Members shall serve without

24  compensation but may be reimbursed for travel and per diem

25  expenses in conjunction with their service. One-half of the

26  members must represent currently operating charter schools,

27  and one-half of the members must represent school districts.

28  The commissioner or a named designee shall chair the Charter

29  School Appeal Commission.

30         4.  The chair shall convene meetings of the commission

31  and shall ensure that the written recommendations are

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  completed and forwarded in a timely manner. In cases where the

 2  commission cannot reach a decision, the chair shall make the

 3  written recommendation with justification, noting that the

 4  decision was rendered by the chair.

 5         5.  Commission members shall thoroughly review the

 6  materials presented to them from the appellant and the

 7  sponsor. The commission may request information to clarify the

 8  documentation presented to it. In the course of its review,

 9  the commission may facilitate the postponement of an appeal in

10  those cases where additional time and communication may negate

11  the need for a formal appeal and both parties agree, in

12  writing, to postpone the appeal to the State Board of

13  Education. A new date certain for the appeal shall then be set

14  based upon the rules and procedures of the State Board of

15  Education. Commission members shall provide a written

16  recommendation to the state board as to whether the appeal

17  should be upheld or denied. A fact-based justification for the

18  recommendation must be included. The chair must ensure that

19  the written recommendation is submitted to the State Board of

20  Education members no later than 7 calendar days prior to the

21  date on which the appeal is to be heard. Both parties in the

22  case shall also be provided a copy of the recommendation.

23         (f)(e)  The Department of Education may provide

24  technical assistance to an applicant upon written request.

25         (g)(f)  In considering charter applications for a lab

26  school, a state university shall consult with the district

27  school board of the county in which the lab school is located.

28  The decision of a state university may be appealed pursuant to

29  the procedure established in this subsection.

30         (h)  Prior to approving a charter, a state university

31  or community college board of trustees shall consult with the

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  district school board of the county in which the charter

 2  school is to be located.

 3         (i)(g)  The terms and conditions for the operation of a

 4  charter school shall be set forth by the sponsor and the

 5  applicant in a written contractual agreement, called a

 6  charter. The sponsor shall not impose unreasonable rules or

 7  regulations that violate the intent of giving charter schools

 8  greater flexibility to meet educational goals. The applicant

 9  and sponsor shall have 6 months in which to mutually agree to

10  the provisions of the charter. The Department of Education

11  shall provide mediation services for any dispute regarding

12  this section subsequent to the approval of a charter

13  application and for any dispute relating to the approved

14  charter, except disputes regarding charter school application

15  denials. If the Commissioner of Education determines that the

16  dispute cannot be settled through mediation, the dispute may

17  be appealed to an administrative law judge appointed by the

18  Division of Administrative Hearings. The administrative law

19  judge may rule on issues of equitable treatment of the charter

20  school as a public school, whether proposed provisions of the

21  charter violate the intended flexibility granted charter

22  schools by statute, or on any other matter regarding this

23  section except a charter school application denial, and shall

24  award the prevailing party reasonable attorney's fees and

25  costs incurred to be paid by the losing party. The costs of

26  the administrative hearing shall be paid by the party whom the

27  administrative law judge rules against.

28         (7)  CHARTER.--The major issues involving the operation

29  of a charter school shall be considered in advance and written

30  into the charter. The charter shall be signed by the governing

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  body of the charter school and the sponsor, following a public

 2  hearing to ensure community input.

 3         (a)  The charter shall address, and criteria for

 4  approval of the charter shall be based on:

 5         1.  The school's mission, the students to be served,

 6  and the ages and grades to be included.

 7         2.  The focus of the curriculum, the instructional

 8  methods to be used, any distinctive instructional techniques

 9  to be employed, and identification and acquisition of

10  appropriate technologies needed to improve educational and

11  administrative performance which include a means for promoting

12  safe, ethical, and appropriate uses of technology which comply

13  with legal and professional standards. The charter shall

14  ensure that reading is a primary focus of the curriculum and

15  that resources are provided to identify and provide

16  specialized instruction for students who are reading below

17  grade level. The curriculum and instructional strategies for

18  reading must be consistent with the Sunshine State Standards

19  and grounded in scientifically based reading research.

20         3.  The current incoming baseline standard of student

21  academic achievement, the outcomes to be achieved, and the

22  method of measurement that will be used. The criteria listed

23  in this subparagraph shall include a detailed description for

24  each of the following:

25         a.  How the baseline student academic achievement

26  levels and prior rates of academic progress will be

27  established.

28         b.  How these baseline rates will be compared to rates

29  of academic progress achieved by these same students while

30  attending the charter school.

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1         c.  To the extent possible, how these rates of progress

 2  will be evaluated and compared with rates of progress of other

 3  closely comparable student populations.

 4  

 5  

 6  The district school board is required to provide academic

 7  student performance data to charter schools for each of their

 8  students coming from the district school system, as well as

 9  rates of academic progress of comparable student populations

10  in the district school system.

11         4.  The methods used to identify the educational

12  strengths and needs of students and how well educational goals

13  and performance standards are met by students attending the

14  charter school. Included in the methods is a means for the

15  charter school to ensure accountability to its constituents by

16  analyzing student performance data and by evaluating the

17  effectiveness and efficiency of its major educational

18  programs. Students in charter schools shall, at a minimum,

19  participate in the statewide assessment program created under

20  s. 1008.22.

21         5.  In secondary charter schools, a method for

22  determining that a student has satisfied the requirements for

23  graduation in s. 1003.43.

24         6.  A method for resolving conflicts between the

25  governing body of the charter school and the sponsor.

26         7.  The admissions procedures and dismissal procedures,

27  including the school's code of student conduct.

28         8.  The ways by which the school will achieve a

29  racial/ethnic balance reflective of the community it serves or

30  within the racial/ethnic range of other public schools in the

31  same school district.

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1         9.  The financial and administrative management of the

 2  school, including a reasonable demonstration of the

 3  professional experience or competence of those individuals or

 4  organizations applying to operate the charter school or those

 5  hired or retained to perform such professional services and

 6  the description of clearly delineated responsibilities and the

 7  policies and practices needed to effectively manage the

 8  charter school. A description of internal audit procedures and

 9  establishment of controls to ensure that financial resources

10  are properly managed must be included. Both public sector and

11  private sector professional experience shall be equally valid

12  in such a consideration.

13         10.  The asset and liability projections required in

14  the application which are incorporated into the charter and

15  shall be compared with information provided in the annual

16  report of the charter school. The charter shall ensure that,

17  if a charter school internal audit reveals a deficit financial

18  position, the auditors are required to notify the charter

19  school governing board, the sponsor, and the Department of

20  Education.

21         11.10.  A description of procedures that identify

22  various risks and provide for a comprehensive approach to

23  reduce the impact of losses; plans to ensure the safety and

24  security of students and staff; plans to identify, minimize,

25  and protect others from violent or disruptive student

26  behavior; and the manner in which the school will be insured,

27  including whether or not the school will be required to have

28  liability insurance, and, if so, the terms and conditions

29  thereof and the amounts of coverage.

30         12.11.  The term of the charter which shall provide for

31  cancellation of the charter if insufficient progress has been

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  made in attaining the student achievement objectives of the

 2  charter and if it is not likely that such objectives can be

 3  achieved before expiration of the charter. The initial term of

 4  a charter shall be for 3, 4, or 5 years. In order to

 5  facilitate access to long-term financial resources for charter

 6  school construction, charter schools that are operated by a

 7  municipality or other public entity as provided by law are

 8  eligible for up to a 15-year charter, subject to approval by

 9  the sponsor district school board. A charter lab school is

10  eligible for a charter for a term of up to 15 years. In

11  addition, to facilitate access to long-term financial

12  resources for charter school construction, charter schools

13  that are operated by a private, not-for-profit, s. 501(c)(3)

14  status corporation are eligible for up to a 10-year charter,

15  subject to approval by the sponsor district school board. Such

16  long-term charters remain subject to annual review and may be

17  terminated during the term of the charter, but only for

18  specific good cause according to the provisions set forth in

19  subsection (8).

20         13.12.  The facilities to be used and their location.

21         14.13.  The qualifications to be required of the

22  teachers and the potential strategies used to recruit, hire,

23  train, and retain qualified staff to achieve best value.

24         15.14.  The governance structure of the school,

25  including the status of the charter school as a public or

26  private employer as required in paragraph (12)(i).

27         16.15.  A timetable for implementing the charter which

28  addresses the implementation of each element thereof and the

29  date by which the charter shall be awarded in order to meet

30  this timetable.

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1         17.16.  In the case of an existing public school being

 2  converted to charter status, alternative arrangements for

 3  current students who choose not to attend the charter school

 4  and for current teachers who choose not to teach in the

 5  charter school after conversion in accordance with the

 6  existing collective bargaining agreement or district school

 7  board rule in the absence of a collective bargaining

 8  agreement. However, alternative arrangements shall not be

 9  required for current teachers who choose not to teach in a

10  charter lab school, except as authorized by the employment

11  policies of the state university which grants the charter to

12  the lab school.

13         (b)  A charter may be renewed every 5 school years,

14  provided that a program review demonstrates that the criteria

15  in paragraph (a) have been successfully accomplished and that

16  none of the grounds for nonrenewal established by paragraph

17  (8)(a) has been documented. In order to facilitate long-term

18  financing for charter school construction, charter schools

19  operating for a minimum of 2 years and demonstrating exemplary

20  academic programming and fiscal management are eligible for a

21  15-year charter renewal. Such long-term charter is subject to

22  annual review and may be terminated during the term of the

23  charter.

24         (c)  A charter may be modified during its initial term

25  or any renewal term upon the recommendation of the sponsor or

26  the charter school governing board and the approval of both

27  parties to the agreement.

28         (8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--

29         (a)  At the end of the term of a charter, the sponsor

30  may choose not to renew the charter for any of the following

31  grounds:

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1         1.  Failure to participate in the state's education

 2  accountability system created in s. 1008.31, as required in

 3  this section, or failure to meet the requirements for student

 4  performance stated in the charter.

 5         2.  Failure to meet generally accepted standards of

 6  fiscal management.

 7         3.  Violation of law.

 8         4.  Other good cause shown.

 9         (b)  During the term of a charter, the sponsor may

10  terminate the charter for any of the grounds listed in

11  paragraph (a).

12         (c)  At least 90 days prior to renewing or terminating

13  a charter, the sponsor shall notify the governing body of the

14  school of the proposed action in writing. The notice shall

15  state in reasonable detail the grounds for the proposed action

16  and stipulate that the school's governing body may, within 14

17  calendar days after receiving the notice, request an informal

18  hearing before the sponsor. The sponsor shall conduct the

19  informal hearing within 30 calendar days after receiving a

20  written request. The charter school's governing body may,

21  within 14 calendar days after receiving the sponsor's decision

22  to terminate or refuse to renew the charter, appeal the

23  decision pursuant to the procedure established in subsection

24  (6).

25         (d)  A charter may be terminated immediately if the

26  sponsor determines that good cause has been shown or if the

27  health, safety, or welfare of the students is threatened. The

28  school district in which the charter school is located shall

29  assume operation of the school under these circumstances. The

30  charter school's governing board may, within 14 days after

31  receiving the sponsor's decision to terminate the charter,

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  appeal the decision pursuant to the procedure established in

 2  subsection (6).

 3         (e)  When a charter is not renewed or is terminated,

 4  the school shall be dissolved under the provisions of law

 5  under which the school was organized, and any unencumbered

 6  public funds from the charter school shall revert to the

 7  district school board. In the event a charter school is

 8  dissolved or is otherwise terminated, all district school

 9  board property and improvements, furnishings, and equipment

10  purchased with public funds shall automatically revert to full

11  ownership by the district school board, subject to complete

12  satisfaction of any lawful liens or encumbrances. Any

13  unencumbered public funds from the charter school, district

14  school board property and improvements, furnishings, and

15  equipment purchased with public funds, or financial or other

16  records pertaining to the charter school, in the possession of

17  any person, entity, or holding company, other than the charter

18  school, shall be held in trust upon the district school

19  board's request, until any appeal status is resolved.

20         (f)  If a charter is not renewed or is terminated, the

21  charter school is responsible for all debts of the charter

22  school. The district may not assume the debt from any contract

23  for services made between the governing body of the school and

24  a third party, except for a debt that is previously detailed

25  and agreed upon in writing by both the district and the

26  governing body of the school and that may not reasonably be

27  assumed to have been satisfied by the district.

28         (g)  If a charter is not renewed or is terminated, a

29  student who attended the school may apply to, and shall be

30  enrolled in, another public school. Normal application

31  deadlines shall be disregarded under such circumstances.

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1         (9)  CHARTER SCHOOL REQUIREMENTS.--

 2         (a)  A charter school shall be nonsectarian in its

 3  programs, admission policies, employment practices, and

 4  operations.

 5         (b)  A charter school shall admit students as provided

 6  in subsection (10).

 7         (c)  A charter school shall be accountable to its

 8  sponsor for performance as provided in subsection (7).

 9         (d)  A charter school shall not charge tuition or

10  registration fees, except those fees normally charged by other

11  public schools. However, a charter lab school may charge a

12  student activity and service fee as authorized by s.

13  1002.32(5).

14         (e)  A charter school shall meet all applicable state

15  and local health, safety, and civil rights requirements.

16         (f)  A charter school shall not violate the

17  antidiscrimination provisions of s. 1000.05.

18         (g)  A charter school shall provide for an annual

19  financial audit in accordance with s. 218.39.

20         (h)  No organization shall hold more than 15 charters

21  statewide.

22         (i)  In order to provide financial information that is

23  comparable to that reported for other public schools, charter

24  schools are to maintain all financial records which constitute

25  their accounting system:

26         1.  In accordance with the accounts and codes

27  prescribed in the most recent issuance of the publication

28  titled "Financial and Program Cost Accounting and Reporting

29  for Florida Schools"; or

30         2.  At the discretion of the charter school governing

31  board, a charter school may elect to follow generally accepted

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  accounting standards for not-for-profit organizations, but

 2  must reformat this information for reporting according to this

 3  paragraph.

 4  

 5  Charter schools are to provide annual financial report and

 6  program cost report information in the state-required formats

 7  for inclusion in district reporting in compliance with s.

 8  1011.60(1). Charter schools that are operated by a

 9  municipality or are a component unit of a parent nonprofit

10  organization may use the accounting system of the municipality

11  or the parent but must reformat this information for reporting

12  according to this paragraph.

13         (j)  The governing board of the charter school shall

14  annually adopt and maintain an operating budget.

15         (k)  The governing body of the charter school shall

16  exercise continuing oversight over charter school operations.

17  and make annual progress reports to its sponsor, which upon

18  verification shall be forwarded to the Commissioner of

19  Education at the same time as other annual school

20  accountability reports. The report shall contain at least the

21  following information:

22         (l)  The governing body of the charter school shall

23  report its progress annually to its sponsor, which shall

24  verify and forward the report to the Commissioner of Education

25  at the same time as other annual school accountability

26  reports. The Department of Education shall consult with the

27  Charter School Accountability and Funding Authority to provide

28  suggested guidelines and a format or template for the annual

29  report. The department shall include in its compilation a

30  notation that the school failed to file its report by the

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  established deadline. The guidelines shall include at least

 2  the following components:

 3         1.  Student achievement performance data, including the

 4  information required for the annual school report and the

 5  education accountability system governed by ss. 1008.31 and

 6  1008.345. Charter schools are subject to the same

 7  accountability requirements as other public schools, including

 8  reports of student achievement information that links baseline

 9  student data to the school's performance projections

10  identified in the charter. The charter school shall identify

11  reasons for any difference between projected and actual

12  student performance The charter school's progress toward

13  achieving the goals outlined in its charter.

14         2.  Financial status of the charter school, according

15  to guidelines recommended by the Charter School Accountability

16  and Funding Authority and provided by the Department of

17  Education. The guidelines must include revenues and

18  expenditures at a level of detail that allows for analysis of

19  the ability to meet financial obligations and timely repayment

20  of debt The information required in the annual school report

21  pursuant to s. 1008.345.

22         3.  Documentation of the facilities in current use and

23  any planned facilities for use by the charter school for

24  instruction of students, administrative functions, or

25  investment purposes Financial records of the charter school,

26  including revenues and expenditures.

27         4.  Descriptive information about the charter school's

28  personnel, including salary and benefit levels of charter

29  school employees and the proportion of instructional personnel

30  who hold professional or temporary certificates.

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1         (m)(l)  A charter school shall not levy taxes or issue

 2  bonds secured by tax revenues.

 3         (n)(m)  A charter school shall provide instruction for

 4  at least the number of days required by law for other public

 5  schools, and may provide instruction for additional days.

 6         (13)  NUMBER OF SCHOOLS.--There shall be no limitation

 7  on the number of newly created charter schools that may be

 8  authorized in any county. Any district school board policy

 9  that seeks to limit the number of newly created charter

10  schools shall be subject to review and approval by the State

11  Board of Education prior to its taking effect.

12         (a)  The number of newly created charter schools is

13  limited to no more than 28 in each school district that has

14  100,000 or more students, no more than 20 in each school

15  district that has 50,000 to 99,999 students, and no more than

16  12 in each school district with fewer than 50,000 students.

17         (b)  An existing public school which converts to a

18  charter school shall not be counted toward the limit

19  established by paragraph (a).

20         (c)  Notwithstanding any limit established by this

21  subsection, a district school board or a charter school

22  applicant shall have the right to request an increase of the

23  limit on the number of charter schools authorized to be

24  established within the district from the State Board of

25  Education.

26         (d)  Whenever a municipality has submitted charter

27  applications for the establishment of a charter school feeder

28  pattern (elementary, middle, and senior high schools), and

29  upon approval of each individual charter application by the

30  district school board, such applications shall then be

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  designated as one charter school for all purposes listed

 2  pursuant to this section.

 3         (23)  CHARTER SCHOOL ACCOUNTABILITY AND FUNDING

 4  AUTHORITY; CHARTER SCHOOL REVIEW PANEL AND LEGISLATIVE

 5  REVIEW.--

 6         (a)  The Department of Education shall regularly

 7  convene a Charter School Accountability and Funding Authority

 8  Review Panel in order to evaluate performance accountability

 9  of charter schools and oversee funding as required by s.

10  1013.62 review issues, practices, and policies regarding

11  charter schools.

12         1.  The composition of the authority review panel shall

13  include individuals with experience in finance,

14  administration, law, education, and school governance, and

15  individuals familiar with charter school construction and

16  operation. No current charter school operator or sponsor shall

17  be a member of the authority. The panel shall include two

18  appointees each from the Commissioner of Education, the

19  President of the Senate, and the Speaker of the House of

20  Representatives. The Governor shall appoint three members of

21  the authority panel and shall annually designate the chair.

22  The members of the authority shall serve 3-year staggered

23  terms and shall be eligible for reappointment Each member of

24  the panel shall serve a 1-year term, unless renewed by the

25  office making the appointment.

26         2.  The Charter School Accountability and Funding

27  Authority panel shall make recommendations to the Legislature,

28  to the State Board Department of Education, to charter

29  schools, and to school districts on for improving charter

30  school operations, and oversight and for ensuring best

31  

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  business practices at and fair business relationships, and

 2  distributing facilities funding with charter schools.

 3         3.  Annually, the Charter School Accountability and

 4  Funding Authority shall recommend an allocation for charter

 5  schools facilities funding as required by s. 1013.62. Charter

 6  schools are not eligible for facilities funding unless they

 7  have been in operation for 3 or more years. The authority

 8  shall determine the priorities based on an analysis of the

 9  charter school's previous 3 years of operation and shall use

10  at least the following criteria:

11         a.  The charter school's need for permanent

12  construction related to the size and mission of the school.

13         b.  The financial stability of the charter school,

14  including any multiyear funding commitments.

15         c.  Parental satisfaction.

16         d.  Improved student performance.

17         e.  Other appropriate accountability and performance

18  data.

19         (b)  The Legislature shall review the operation of

20  charter schools during the 2005 Regular Session of the

21  Legislature.

22         (24)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon

23  receipt of the annual report required by paragraph (9)(l)

24  (9)(k), the Department of Education shall provide to the State

25  Board of Education, the Commissioner of Education, the

26  Governor, the President of the Senate, and the Speaker of the

27  House of Representatives, and the Charter School

28  Accountability and Funding Authority an analysis and

29  comparison of the overall performance of charter school

30  students, to include all students whose scores are counted as

31  part of the statewide assessment program, versus comparable

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  public school students in the district as determined by the

 2  statewide assessment program currently administered in the

 3  school district, and other assessments administered pursuant

 4  to s. 1008.22(3). If a charter school is required to prepare a

 5  performance improvement plan, the Department of Education

 6  shall immediately report that charter school to the Charter

 7  School Accountability and Funding Authority.

 8         Section 2.  Subsection (2) and paragraph (h) of

 9  subsection (9) of section 1002.32, Florida Statutes, are

10  amended to read:

11         1002.32  Developmental research (laboratory) schools.--

12         (2)  ESTABLISHMENT.--There is established a category of

13  public schools to be known as developmental research

14  (laboratory) schools (lab schools). Each lab school shall

15  provide sequential instruction and shall be affiliated with

16  the college of education within the state university of

17  closest geographic proximity. A lab school to which a charter

18  has been issued under s. 1002.33(5)(c) (5)(b) must be

19  affiliated with the college of education within the state

20  university that issued the charter, but is not subject to the

21  requirement that the state university be of closest geographic

22  proximity. For the purpose of state funding, Florida

23  Agricultural and Mechanical University, Florida Atlantic

24  University, Florida State University, the University of

25  Florida, and other universities approved by the State Board of

26  Education and the Legislature are authorized to sponsor one or

27  more lab schools.

28         (9)  FUNDING.--Funding for a lab school, including a

29  charter lab school, shall be provided as follows:

30         (h)  A lab school to which a charter has been issued

31  under s. 1002.33(5)(c)(5)(b) is eligible to receive funding

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  for charter school capital outlay if it meets the eligibility

 2  requirements of s. 1013.62. If the lab school receives funds

 3  from charter school capital outlay, the school shall receive

 4  capital outlay funds otherwise provided in this subsection

 5  only to the extent that funds allocated pursuant to s. 1013.62

 6  are insufficient to provide capital outlay funds to the lab

 7  school at one-fifteenth of the cost per student station.

 8         Section 3.  Section 1013.62, Florida Statutes, is

 9  amended to read:

10         1013.62  Charter schools capital outlay funding.--

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

12  charter school capital outlay purposes, the Commissioner of

13  Education shall allocate the funds among eligible charter

14  schools. The commissioner shall allocate the funds based on

15  recommendations provided by the Charter School Accountability

16  and Funding Authority. To be eligible for a funding

17  allocation, a charter school must meet the provisions of

18  subsection (6), must have received final approval from its

19  sponsor pursuant to s. 1002.33 for operation during that

20  fiscal year, and must serve students in facilities that are

21  not provided by the charter school's sponsor. Prior to the

22  release of capital outlay funds to a school district on behalf

23  of the charter school, the Department of Education shall

24  ensure that the charter school sponsor district school board

25  and the charter school governing board enter into a written

26  agreement that includes provisions for the reversion of any

27  unencumbered funds and all equipment and property purchased

28  with public education funds to the ownership of the sponsor

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

30  the event that the school terminates operations. Any funds

31  recovered by the state shall be deposited in the General

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  Revenue Fund. A charter school is not eligible for a funding

 2  allocation if it was created by the conversion of a public

 3  school and operates in facilities provided by the charter

 4  school's sponsor for a nominal fee or at no charge or if it is

 5  directly or indirectly operated by the school district. Unless

 6  otherwise provided in the General Appropriations Act, the

 7  funding allocation for each eligible charter school shall be

 8  determined by multiplying the school's projected student

 9  enrollment by one-fifteenth of the cost-per-student station

10  specified in s. 1013.64(6)(b) for an elementary, middle, or

11  high school, as appropriate. If the funds appropriated are not

12  sufficient, the commissioner shall prorate the available funds

13  among eligible charter schools. Funds shall be distributed on

14  the basis of the capital outlay full-time equivalent

15  membership by grade level, which shall be calculated by

16  averaging the results of the second and third enrollment

17  surveys. The Department of Education shall distribute capital

18  outlay funds monthly, beginning in the first quarter of the

19  fiscal year, based on one-twelfth of the amount the department

20  reasonably expects the charter school to receive during that

21  fiscal year. The commissioner shall adjust subsequent

22  distributions as necessary to reflect each charter school's

23  actual student enrollment as reflected in the second and third

24  enrollment surveys. The commissioner shall establish the

25  intervals and procedures for determining the projected and

26  actual student enrollment of eligible charter schools.

27         (2)  Annually, the Charter School Accountability and

28  Funding Authority shall recommend an allocation for charter

29  schools facilities funding as required by this section.

30  Charter schools are not eligible for facilities funding unless

31  they have been in operation for 3 or more years. The authority

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  shall determine the priorities based on an analysis of the

 2  charter school's previous 3 years of operation and shall use

 3  at least the following criteria:

 4         (a)  The charter school's need for permanent

 5  construction related to the size and mission of the school.

 6         (b)  The financial stability of the charter school,

 7  including any multiyear funding commitments.

 8         (c)  Parental satisfaction.

 9         (d)  Improved student performance.

10         (e)  Other appropriate accountability and performance

11  data.

12         (3)(2)  A charter school's governing body may use

13  charter school capital outlay funds for any capital outlay

14  purpose that is directly related to the functioning of the

15  charter school, including the:

16         (a)  Purchase of real property.

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

18  of school facilities.

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

20  relocatable school facilities.

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

22  from the charter school.

23         (4)(3)  When a charter school is nonrenewed or

24  terminated, any unencumbered funds and all equipment and

25  property purchased with district public funds shall revert to

26  the ownership of the district school board, as provided for in

27  s. 1002.33(8)(e) and (f). In the case of a charter school

28  operated by a state university or a community college, or a

29  charter lab school, any unencumbered funds and all equipment

30  and property purchased with that institution's university

31  public funds shall revert to the ownership of the institution

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    Florida Senate - 2003                                  SB 2242
    9-1319A-03                                         See HB 1279




 1  state university that issued the charter. The reversion of

 2  such equipment, property, and furnishings shall focus on

 3  recoverable assets, but not on intangible or irrecoverable

 4  costs such as rental or leasing fees, normal maintenance, and

 5  limited renovations. The reversion of all property secured

 6  with public funds is subject to the complete satisfaction of

 7  all lawful liens or encumbrances. If there are additional

 8  local issues such as the shared use of facilities or partial

 9  ownership of facilities or property, these issues shall be

10  agreed to in the charter contract prior to the expenditure of

11  funds.

12         (5)(4)  The Commissioner of Education shall specify

13  procedures for submitting and approving requests for funding

14  under this section and procedures for documenting

15  expenditures.

16         (6)(5)  The annual legislative budget request of the

17  Department of Education shall include a request for capital

18  outlay funding for charter schools. The request shall be based

19  on the projected number of students to be served in charter

20  schools who meet the eligibility requirements of this section.

21  A dedicated funding source, if identified in writing by the

22  Commissioner of Education and submitted along with the annual

23  charter school legislative budget request, may be considered

24  an additional source of funding.

25         (7)(6)  Unless authorized otherwise by the Legislature,

26  allocation and proration of charter school capital outlay

27  funds shall be made to eligible charter schools by the

28  Commissioner of Education in an amount and in a manner

29  authorized by subsection (1).

30         Section 4.  This act shall take effect September 1,

31  2003.

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