Senate Bill sb2242c1

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    Florida Senate - 2003                           CS for SB 2242

    By the Committee on Education; and Senator Webster





    304-2205-03

  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; providing duties

23         with respect to lab schools; amending s.

24         1013.62, F.S.; requiring the Charter School

25         Accountability and Funding Authority to

26         recommend allocations of capital outlay funds

27         to charter schools; eliminating a formula for

28         providing allocations; providing an effective

29         date.

30  

31  

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    Florida Senate - 2003                           CS for SB 2242
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 1         WHEREAS, in the 2002-2003 school year, Florida has 223

 2  charter schools educating approximately 51,000 Florida

 3  students, with a projected increase of 117 additional charter

 4  schools in the next school year, and

 5         WHEREAS, this rate of growth is a dramatic increase

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

 7         WHEREAS, while charter schools are public schools,

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

 9  are eligible for inclusion in the state's accountability

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

11  school performance grade in 2002, and

12         WHEREAS, the issue of charter school accountability is

13  of the utmost importance at this time of budget constraints

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

15  

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

17  

18         Section 1.  Subsections (2), (5), and (6), paragraph

19  (a) of subsection (7), and paragraph (a) of subsection (8) of

20  section 1002.33, Florida Statutes, are amended, paragraph (k)

21  of subsection (9) of that section is amended, present

22  paragraphs (l) and (m) of that subsection are redesignated as

23  paragraphs (m) and (n), respectively, and a new paragraph (l)

24  is added to that subsection, and subsections (13), (23), and

25  (24) of that section are amended, to read:

26         1002.33  Charter schools.--

27         (2)  GUIDING PRINCIPLES; PURPOSE.--

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

29  following principles:

30         1.  Meet high standards of student achievement while

31  providing parents flexibility to choose among diverse

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 1  educational opportunities within the state's public school

 2  system.

 3         2.  Promote enhanced academic success and financial

 4  efficiency by aligning responsibility with accountability.

 5         3.  Provide parents with sufficient information on

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

 7  child gains at least a year's worth or learning for every year

 8  spent in the charter school.

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

10  purposes:

11         1.  Improve student learning and academic achievement.

12         2.  Increase learning opportunities for all students,

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

14         3.  Create new professional opportunities for teachers,

15  including ownership of the learning program at the school

16  site.

17         4.  Encourage the use of innovative learning methods.

18         5.  Require the measurement of learning outcomes.

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

20  purposes:

21         1.  Create innovative measurement tools.

22         2.  Provide rigorous competition within the public

23  school district to stimulate continual improvement in all

24  public schools.

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

26         (5)  SPONSOR; DUTIES.--

27         (a)  Sponsoring entities.--

28         1.  A district school board may sponsor a charter

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

30  jurisdiction.

31  

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 1         2.(b)  A state university may grant a charter to a lab

 2  school created under s. 1002.32 and shall be considered to be

 3  the school's sponsor. Such school shall be considered a

 4  charter lab school.

 5         (b)(c)  Sponsor duties.--

 6         1.  The sponsor shall monitor and review the charter

 7  school in its progress toward the goals established in the

 8  charter.

 9         2.(d)  The sponsor shall monitor the revenues and

10  expenditures of the charter school.

11         3.(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         4.(f)  The sponsor's policies shall not apply to a

16  charter school.

17         5.(g)  The 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         6.  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  

26  Community colleges may work with the school district in its

27  designated service area to develop charter schools that offer

28  secondary education. These charter schools must include an

29  option for students to receive an associate degree upon high

30  school graduation. District school boards shall cooperate with

31  and assist the community college on the charter application.

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 1  Community college applications for charter schools are not

 2  subject to the time deadlines outlined in subsection (6) and

 3  may be approved by the district school board at any time

 4  during the year. Community colleges shall not report FTE for

 5  any students who receive FTE funding through the Florida

 6  Education Finance Program.

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

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

 9  requirements:

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

11  school shall prepare an application that:

12         1.  Demonstrates how the school will use the guiding

13  principles and meet the statutorily defined purpose of a

14  charter school.

15         2.  Provides a detailed curriculum plan that

16  illustrates how students will be provided services to attain

17  the Sunshine State Standards.

18         3.  Contains goals and objectives for improving student

19  learning and measuring that improvement. These goals and

20  objectives must indicate how much academic improvement

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

22  evaluated, and the specific results to be attained through

23  instruction.

24         4.  Describes the reading curriculum and differentiated

25  strategies that will be used for students reading at grade

26  level or higher and a separate curriculum and strategies for

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

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

29  curriculum that is consistent with effective teaching

30  strategies that are grounded in scientifically based reading

31  research.

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 1         5.  Contains an annual financial plan for each year

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

 3  5 years. This plan must contain anticipated fund balances

 4  based on revenue projections, a spending plan based on

 5  projected revenues and expenses, and a description of controls

 6  that will safeguard finances and projected enrollment trends.

 7         (b)(a)  A district school board shall receive and

 8  review all applications for a charter school. A district

 9  school board shall receive and consider charter school

10  applications received on or before September 1 October 1 of

11  each calendar year for charter schools to be opened at the

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

13  opened at a time agreed to by the applicant and the district

14  school board. A district school board may receive applications

15  later than this date if it chooses. A sponsor may not charge

16  an applicant for a charter any fee for the processing or

17  consideration of an application, and a sponsor may not base

18  its consideration or approval of an application upon the

19  promise of future payment of any kind.

20         1.  In order to facilitate an accurate budget

21  projection process, a district school board shall be held

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

23  projection due to approval of charter school applications

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

25  facilitate an accurate budget projection, within 15 calendar

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

27  school board or other sponsor shall report to the Department

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

29  charter school location, and its projected FTE.

30         2.  In order to ensure fiscal responsibility, an

31  application for a charter school shall include a full

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 1  accounting of expected assets, a projection of expected

 2  sources and amounts of income, including income derived from

 3  projected student enrollments and from community support, and

 4  an expense projection that includes full accounting of the

 5  costs of operation, including start-up costs.

 6         3.2.  A district school board shall by a majority vote

 7  approve or deny an application no later than 60 calendar days

 8  after the application is received, unless the district school

 9  board and the applicant mutually agree to temporarily postpone

10  the vote to a specific date, at which time the district school

11  board shall by a majority vote approve or deny the

12  application. If the district school board fails to act on the

13  application, an applicant may appeal to the State Board of

14  Education as provided in paragraph (c) (b). If an application

15  is denied, the district school board shall, within 10 calendar

16  days, articulate in writing the specific reasons based upon

17  good cause supporting its denial of the charter application.

18         4.3.  For budget projection purposes, the district

19  school board or other sponsor shall report to the Department

20  of Education the approval or denial of a charter application

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

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

23  shall include the final projected FTE for the approved charter

24  school.

25         5.4.  Upon approval of a charter application, the

26  initial startup shall commence with the beginning of the

27  public school calendar for the district in which the charter

28  is granted unless the district school board allows a waiver of

29  this provision for good cause.

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

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

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

 2  after receipt of the district school board's decision or

 3  failure to act and shall notify the district school board of

 4  its appeal.  Any response of the district school board shall

 5  be submitted to the State Board of Education within 30

 6  calendar days after notification of the appeal.  Upon receipt

 7  of notification from the State Board of Education that a

 8  charter school applicant is filing an appeal, the Commissioner

 9  of Education shall convene a meeting of the Charter School

10  Appeal Commission to study and make recommendations to the

11  State Board of Education regarding its pending decision about

12  the appeal.  The commission shall forward its recommendation

13  to the state board no later than 7 calendar days prior to the

14  date on which the appeal is to be heard.  The State Board of

15  Education shall by majority vote accept or reject the decision

16  of the district school board no later than 90 60 calendar days

17  after an appeal is filed in accordance with State Board of

18  Education rule. The Charter School Appeal Commission may

19  reject an appeal submission for failure to comply with

20  procedural rules governing the appeals process. The rejection

21  shall describe the submission errors. The appellant may have

22  up to 15 calendar days from notice of rejection to resubmit an

23  appeal that meets requirements of State Board of Education

24  rule. An application for appeal submitted subsequent to such

25  rejection shall be considered timely if the original appeal

26  was filed within 30 calendar days after receipt of notice of

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

28  the charter application. The State Board of Education shall

29  remand the application to the district school board with its

30  written decision that the district school board approve or

31  deny the application. The district school board shall

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 1  implement the decision of the State Board of Education. The

 2  decision of the State Board of Education is not subject to the

 3  provisions of the Administrative Procedure Act, chapter 120.

 4         (d)(c)  The district school board shall act upon the

 5  decision of the State Board of Education within 30 calendar

 6  days after it is received.  The State Board of Education's

 7  decision is a final action subject to judicial review.

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

 9  established to assist the commissioner and the State Board of

10  Education with a fair and impartial review of appeals by

11  applicants whose charters have been denied or whose charter

12  contracts have not been renewed by their sponsors.

13         2.  The Charter School Appeal Commission may receive

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

15  Education, review the documents, gather other applicable

16  information regarding the appeal, and make a written

17  recommendation to the commissioner.  The recommendation must

18  state whether the appeal should be upheld or denied and

19  include the reasons for the recommendation being offered.  The

20  commissioner shall forward the recommendation to the State

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

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

23  consider the commission's recommendation in making its

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

25  decision of the Charter School Appeal Commission is not

26  subject to the provisions of the Administrative Procedure Act,

27  chapter 120.

28         3.  The commissioner shall appoint the members of the

29  Charter School Appeal Commission.  Members shall serve without

30  compensation but may be reimbursed for travel and per diem

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

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 1  members must represent currently operating charter schools,

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

 3  The commissioner or a named designee shall chair the Charter

 4  School Appeal Commission.

 5         4.  The chair shall convene meetings of the commission

 6  and shall ensure that the written recommendations are

 7  completed and forwarded in a timely manner.  In cases where

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

 9  the written recommendation with justification, noting that the

10  decision was rendered by the chair.

11         5.  Commission members shall thoroughly review the

12  materials presented to them from the appellant and the

13  sponsor.  The commission may request information to clarify

14  the documentation presented to it.  In the course of its

15  review, the commission may facilitate the postponement of an

16  appeal in those cases where additional time and communication

17  may negate the need for a formal appeal and both parties

18  agree, in writing, to postpone the appeal to the State Board

19  of Education.  A new date certain for the appeal shall then be

20  set based upon the rules and procedures of the State Board of

21  Education. Commission members shall provide a written

22  recommendation to the state board as to whether the appeal

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

24  the recommendation must be included.  The chair must ensure

25  that the written recommendation is submitted to the State

26  Board of Education members no later than 7 calendar days prior

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

28  in the case shall also be provided a copy of the

29  recommendation.

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

31  technical assistance to an applicant upon written request.

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

 2  school, a state university shall consult with the district

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

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

 5  the procedure established in this subsection.

 6         (h)(g)  The terms and conditions for the operation of a

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

 8  applicant in a written contractual agreement, called a

 9  charter. The sponsor shall not impose unreasonable rules or

10  regulations that violate the intent of giving charter schools

11  greater flexibility to meet educational goals. The applicant

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

13  the provisions of the charter.  The Department of Education

14  shall provide mediation services for any dispute regarding

15  this section subsequent to the approval of a charter

16  application and for any dispute relating to the approved

17  charter, except disputes regarding charter school application

18  denials. If the Commissioner of Education determines that the

19  dispute cannot be settled through mediation, the dispute may

20  be appealed to an administrative law judge appointed by the

21  Division of Administrative Hearings. The administrative law

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

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

24  charter violate the intended flexibility granted charter

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

26  section except a charter school application denial, and shall

27  award the prevailing party reasonable attorney's fees and

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

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

30  administrative law judge rules against.

31  

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

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

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

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

 5  hearing to ensure community input.

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

 7  approval of the charter shall be based on:

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

 9  and the ages and grades to be included.

10         2.  The focus of the curriculum, the instructional

11  methods to be used, any distinctive instructional techniques

12  to be employed, and identification and acquisition of

13  appropriate technologies needed to improve educational and

14  administrative performance which include a means for promoting

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

16  with legal and professional standards. The charter shall

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

18  that resources are provided to identify and provide

19  specialized instruction for students who are reading below

20  grade level. The curriculum and instructional strategies for

21  reading must be consistent with the Sunshine State Standards

22  and grounded in scientifically based reading research.

23         3.  The current incoming baseline standard of student

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

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

26  in this subparagraph shall include a detailed description for

27  each of the following:

28         a.  How the baseline student academic achievement

29  levels and prior rates of academic progress will be

30  established.

31  

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

 2  of academic progress achieved by these same students while

 3  attending the charter school.

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

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

 6  closely comparable student populations.

 7  

 8  The district school board is required to provide academic

 9  student performance data to charter schools for each of their

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

11  rates of academic progress of comparable student populations

12  in the district school system.

13         4.  The methods used to identify the educational

14  strengths and needs of students and how well educational goals

15  and performance standards are met by students attending the

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

17  charter school to ensure accountability to its constituents by

18  analyzing student performance data and by evaluating the

19  effectiveness and efficiency of its major educational

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

21  participate in the statewide assessment program created under

22  s. 1008.22.

23         5.  In secondary charter schools, a method for

24  determining that a student has satisfied the requirements for

25  graduation in s. 1003.43.

26         6.  A method for resolving conflicts between the

27  governing body of the charter school and the sponsor.

28         7.  The admissions procedures and dismissal procedures,

29  including the school's code of student conduct.

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

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

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

 2  same school district.

 3         9.  The financial and administrative management of the

 4  school, including a reasonable demonstration of the

 5  professional experience or competence of those individuals or

 6  organizations applying to operate the charter school or those

 7  hired or retained to perform such professional services and

 8  the description of clearly delineated responsibilities and the

 9  policies and practices needed to effectively manage the

10  charter school. A description of internal audit procedures and

11  establishment of controls to ensure that financial resources

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

13  private sector professional experience shall be equally valid

14  in such a consideration.

15         10.  The asset and liability projections required in

16  the application which are incorporated into the charter and

17  shall be compared with information provided in the annual

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

19  if a charter school internal audit reveals a deficit financial

20  position, the auditors are required to notify the charter

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

22  Education.

23         11.10.  A description of procedures that identify

24  various risks and provide for a comprehensive approach to

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

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

27  and protect others from violent or disruptive student

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

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

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

31  thereof and the amounts of coverage.

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 1         12.11.  The term of the charter which shall provide for

 2  cancellation of the charter if insufficient progress has been

 3  made in attaining the student achievement objectives of the

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

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

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

 7  facilitate access to long-term financial resources for charter

 8  school construction, charter schools that are operated by a

 9  municipality or other public entity as provided by law are

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

11  the district school board. A charter lab school is eligible

12  for a charter for a term of up to 15 years. In addition, to

13  facilitate access to long-term financial resources for charter

14  school construction, charter schools that are operated by a

15  private, not-for-profit, s. 501(c)(3) status corporation are

16  eligible for up to a 10-year charter, subject to approval by

17  the district school board. Such long-term charters remain

18  subject to annual review and may be terminated during the term

19  of the charter, but only for specific good cause according to

20  the provisions set forth in subsection (8).

21         13.12.  The facilities to be used and their location.

22         14.13.  The qualifications to be required of the

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

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

25         15.14.  The governance structure of the school,

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

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

28         16.15.  A timetable for implementing the charter which

29  addresses the implementation of each element thereof and the

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

31  this timetable.

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

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

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

16  grounds:

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

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

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

20  performance stated in the charter.

21         2.  Failure to meet generally accepted standards of

22  fiscal management.

23         3.  Violation of law.

24         4.  Other good cause shown.

25         (9)  CHARTER SCHOOL REQUIREMENTS.--

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

27  exercise continuing oversight over charter school operations.

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

29  verification shall be forwarded to the Commissioner of

30  Education at the same time as other annual school

31  

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 1  accountability reports.  The report shall contain at least the

 2  following information:

 3         1.  The charter school's progress toward achieving the

 4  goals outlined in its charter.

 5         2.  The information required in the annual school

 6  report pursuant to s. 1008.345.

 7         3.  Financial records of the charter school, including

 8  revenues and expenditures.

 9         4.  Salary and benefit levels of charter school

10  employees.

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

12  report its progress annually to its sponsor, which shall

13  verify and forward the report to the Commission of Education

14  at the same time as other annual school accountability

15  reports. The Department of Education shall consult with the

16  Charter School Accountability and Funding Authority to provide

17  suggested guidelines and a format or template for the annual

18  report. The department shall include in its compilation a

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

20  established deadline. The guidelines shall include at least

21  the following components:

22         1.  Student achievement performance data, including the

23  information required for the annual school report and the

24  education accountability system governed by ss. 1008.31 and

25  1008.345. Charter schools are subject to the same

26  accountability requirements as other public schools, including

27  reports of student achievement information that links baseline

28  student data to the school's performance projections

29  identified in the charter. The charter school shall identify

30  reasons for any difference between projected and actual

31  student performance.

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 1         2.  Financial status of the charter school, according

 2  to guidelines recommended by the Charter School Accountability

 3  and Funding Authority and provided by the Department of

 4  Education. The guidelines must include revenues and

 5  expenditures at a level of detail which allows for analysis of

 6  the ability to meet financial obligations and timely repayment

 7  of debt.

 8         3.  Documentation of the facilities in current use and

 9  any planned facilities for use by the charter school for

10  instruction of students, administrative functions, or

11  investment purposes.

12         4.  Descriptive information about the charter school's

13  personnel, including salary and benefit levels of charter

14  school employees and the proportion of instructional personnel

15  who hold professional or temporary certificates.

16         (13)  NUMBER OF SCHOOLS.--

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

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

19  100,000 or more students, no more than 20 in each school

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

21  12 in each school district with fewer than 50,000 students.

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

23  charter school shall not be counted toward the limit

24  established by paragraph (a).

25         (c)  Notwithstanding any limit established by this

26  subsection, a district school board or a charter school

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

28  limit on the number of charter schools authorized to be

29  established within the district from the State Board of

30  Education.

31  

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 1         (d)  Whenever a municipality has submitted charter

 2  applications for the establishment of a charter school feeder

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

 4  upon approval of each individual charter application by the

 5  district school board, such applications shall then be

 6  designated as one charter school for all purposes listed

 7  pursuant to this section.

 8         (23)  CHARTER SCHOOL ACCOUNTABILITY AND FUNDING

 9  AUTHORITY; REVIEW PANEL AND LEGISLATIVE REVIEW.--

10         (a)  The Department of Education shall regularly

11  convene a Charter School Accountability and Funding Authority

12  Review Panel in order to evaluate performance accountability

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

14  1013.62 review issues, practices, and policies regarding

15  charter schools.

16         1.  The composition of the authority review panel shall

17  include individuals with experience in finance,

18  administration, law, education, and school governance, and

19  individuals familiar with charter school construction and

20  operation. No current charter school operator or sponsor shall

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

22  appointees each from the Commissioner of Education, the

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

24  Representatives. The Governor shall appoint three members of

25  the authority panel and shall annually designate the chair.

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

27  terms and shall be eligible for reappointment. Each member of

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

29  office making the appointment.

30         2.  The Charter School Accountability and Funding

31  Authority panel shall make recommendations to the Legislature,

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 1  to the State Board Department of Education, to charter

 2  schools, and to school districts on for improving charter

 3  school operations, and oversight and for ensuring best

 4  business practices at and fair business relationships, and

 5  distributing facilities funding with charter schools.

 6         3.  Annually, the Charter School Accountability and

 7  Funding Authority shall recommend an allocation for charter

 8  schools capital outlay funding as required by this section.

 9  The authority shall determine the priorities based on an

10  analysis of the charter school's previous years of operation,

11  including, but not limited to, the following criteria:

12         a.  The charter school's need for permanent

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

14         b.  The financial stability of the charter school.

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 Governor, the Commissioner of

26  Education, 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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 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 paragraphs (c) and (h)

 9  of 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)(a)2. s. 1002.33(5)(b) must

19  be 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 a lab

27  school one or more lab schools.

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

29  charter lab school, shall be provided as follows:

30         (c)  All operating funds provided under this section

31  shall be deposited in a Lab School Trust Fund and shall be

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 1  expended for the purposes of this section. The university

 2  assigned a lab school shall be the fiscal agent for these

 3  funds, and all rules of the university governing the budgeting

 4  and expenditure of state funds shall apply to these funds

 5  unless otherwise provided by law or rule of the State Board of

 6  Education. The university board of trustees shall be the

 7  public employer of lab school personnel for collective

 8  bargaining purposes unless a charter has been granted pursuant

 9  to s. 1002.33(5)(a)2. Once a university grants a charter to a

10  lab school, the university shall monitor the revenues and

11  expenditures of the charter lab school as its sponsor in

12  accordance with s. 1002.33(5)(b)2. rather than the charter lab

13  school's fiscal agent. Employees of the charter lab school

14  shall be deemed employees of the entity holding the charter

15  and must comply with the provisions of s. 1002.33(12). Any

16  operating and capital outlay funds available for a charter lab

17  school shall be distributed directly to the entity holding the

18  charter.

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

20  under s. 1002(5)(a)2. s. 1002.33(5)(b) is eligible to receive

21  funding for charter school capital outlay if it meets the

22  eligibility requirements of s. 1013.62. If the lab school

23  receives funds from charter school capital outlay, the school

24  shall receive capital outlay funds otherwise provided in this

25  subsection only to the extent that funds allocated pursuant to

26  s. 1013.62 are insufficient to provide capital outlay funds to

27  the lab school at one-fifteenth of the cost per student

28  station.

29         Section 3.  Section 1013.62, Florida Statutes, is

30  amended to read:

31         1013.62  Charter schools capital outlay funding.--

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

 2  charter school capital outlay purposes, the Commissioner of

 3  Education shall allocate the funds among eligible charter

 4  schools. The commissioner shall allocate the funds based on

 5  recommendations provided by the Charter School Accountability

 6  and Funding Authority. To be eligible for a funding

 7  allocation, a charter school must:

 8         (a)  Have been in operation for 3 or more years;

 9         (b)  Be an expansion or expanded feeder chain of a

10  charter school currently receiving charter school capital

11  outlay funds; or

12         (c)  Have been accredited by the Commission on Schools

13  of the Southern Association of Colleges and Schools.

14  

15  In addition charter schools meet the provisions of subsection

16  (6), must have received final approval from its sponsor

17  pursuant to s. 1002.33 for operation during that fiscal year,

18  and must serve students in facilities that are not provided by

19  the charter school's sponsor.

20         (2)  Prior to the release of capital outlay funds to a

21  school district on behalf of the charter school, the

22  Department of Education shall ensure that the district school

23  board and the charter school governing board enter into a

24  written agreement that includes provisions for the reversion

25  of any unencumbered funds and all equipment and property

26  purchased with public education funds to the ownership of the

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

28  the event that the school terminates operations. Any funds

29  recovered by the state shall be deposited in the General

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

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

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 1  school and operates in facilities provided by the charter

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

 3  directly or indirectly operated by the school district. Unless

 4  otherwise provided in the General Appropriations Act, the

 5  funding allocation for each eligible charter school shall be

 6  determined by multiplying the school's projected student

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

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

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

10  sufficient, the commissioner shall prorate the available funds

11  among eligible charter schools. Funds shall be distributed on

12  the basis of the capital outlay full-time equivalent

13  membership by grade level, which shall be calculated by

14  averaging the results of the second and third enrollment

15  surveys. The Department of Education shall distribute capital

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

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

18  reasonably expects the charter school to receive during that

19  fiscal year. The commissioner shall adjust subsequent

20  distributions as necessary to reflect each charter school's

21  actual student enrollment as reflected in the second and third

22  enrollment surveys. The commissioner shall establish the

23  intervals and procedures for determining the projected and

24  actual student enrollment of eligible charter schools.

25         (3)  Annually, the Charter School Accountability and

26  Funding Authority shall recommend an allocation for charter

27  schools capital outlay funding as required by this section.

28  The authority shall determine the priorities based on an

29  analysis of the charter school's previous years of operation

30  including, but not limited to, the following criteria:

31  

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

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

 3         (b)  The financial stability of the charter school.

 4         (c)  Parental satisfaction.

 5         (d)  Improved student performance.

 6         (e)  Other appropriate accountability and performance

 7  data.

 8         (4)(2)  A charter school's governing body may use

 9  charter school capital outlay funds for any capital outlay

10  purpose that is directly related to the functioning of the

11  charter school, including the:

12         (a)  Purchase of real property.

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

14  of school facilities.

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

16  relocatable school facilities.

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

18  from the charter school.

19         (5)(3)  When a charter school is nonrenewed or

20  terminated, any unencumbered funds and all equipment and

21  property purchased with district public funds shall revert to

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

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

24  any unencumbered funds and all equipment and property

25  purchased with university public funds shall revert to the

26  ownership of the state university that issued the charter. The

27  reversion of such equipment, property, and furnishings shall

28  focus on recoverable assets, but not on intangible or

29  irrecoverable costs such as rental or leasing fees, normal

30  maintenance, and limited renovations. The reversion of all

31  property secured with public funds is subject to the complete

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 1  satisfaction of all lawful liens or encumbrances. If there are

 2  additional local issues such as the shared use of facilities

 3  or partial ownership of facilities or property, these issues

 4  shall be agreed to in the charter contract prior to the

 5  expenditure of funds.

 6         (6)(4)  The Commissioner of Education shall specify

 7  procedures for submitting and approving requests for funding

 8  under this section and procedures for documenting

 9  expenditures.

10         (7)(5)  The annual legislative budget request of the

11  Department of Education shall include a request for capital

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

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

14  schools who meet the eligibility requirements of this section.

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

16  Commissioner of Education and submitted along with the annual

17  charter school legislative budget request, may be considered

18  an additional source of funding.

19         (8)(6)  Unless authorized otherwise by the Legislature,

20  allocation and proration of charter school capital outlay

21  funds shall be made to eligible charter schools by the

22  Commissioner of Education in an amount and in a manner as

23  recommended by the Charter School Accountability and Funding

24  Authority authorized by subsection (1).

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

26  2003.

27  

28  

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2242

 3                                 

 4  The Committee Substitute changed the following provisions:

 5  Language authorizing community colleges to sponsor charter
    schools is removed. New language allowing a college to work
 6  with a district to develop a charter school is included.
    Students reported for FTE funding through the FEFP may not be
 7  reported for FTE by the college.  Application deadlines are
    waived for such schools and the district may consider such a
 8  request at any time.

 9  Language permitting universities to sponsor a charter school
    in partnership with an independent postsecondary educational
10  institution is removed.  New language restricting universities
    to one lab school is added.  Clarifying language is included
11  that the university is the sponsor of a charter lab school.
    The entity holding the charter is the fiscal agent and is to
12  receive all funds available for the charter lab school.
    Employees of a charter lab school are considered as employees
13  of the entity holding the charter.

14  A new deadline of September 1, instead of October 1, is
    established for all charter school applications except those
15  developed with community colleges.

16  New criteria are added for a charter school to be eligible to
    receive capital outlay funding.  Unless directed otherwise by
17  the Legislature, the Commissioner of Education is to
    distribute any capital outlay funds for charter schools as
18  recommended by the Charter School Accountability and Funding
    Authority.
19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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