Senate Bill sb2242c2

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    Florida Senate - 2003                    CS for CS for SB 2242

    By the Committees on Appropriations; Education; and Senator
    Webster




    309-2347-03

  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; revising the administrative fee the

17         sponsor is authorized to withhold; revising

18         provisions relating to the analysis of charter

19         school performance; amending s. 1002.32, F.S.;

20         correcting cross-references; providing duties

21         with respect to lab schools; amending s.

22         1013.62, F.S.; revising conditions for charter

23         schools to receive funding; revising purposes

24         for which charter school capital outlay funds

25         may be used; providing guidelines for

26         allocation of charter school capital outlay

27         funds; providing an effective date.

28  

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

30  charter schools educating approximately 51,000 Florida

31  

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 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), and (6), paragraph

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

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

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

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

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

22  is added to that subsection, and subsection (13), paragraph

23  (a) of subsection (21), and subsection (24) of that section

24  are amended, to read:

25         1002.33  Charter schools.--

26         (2)  GUIDING PRINCIPLES; PURPOSE.--

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

28  following principles:

29         1.  Meet high standards of student achievement while

30  providing parents flexibility to choose among diverse

31  

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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  If a charter school falls short of performance measures

23  included in the approved charter, the sponsor shall report

24  such shortcomings to the Department of Education.

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 shall

17  be compared with information provided in the annual report of

18  the charter school. The charter shall ensure that, if a

19  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. The internal auditor shall report such findings in

23  the form of an exit interview to the principal or principal

24  administrator of the charter school and the chair of the

25  governing board within 7 working days of finding the deficit

26  position. A final report shall be provided to the entire

27  governing board, the sponsor, and the Department of Education

28  within 14 calendar days after the exit interview.

29         11.10.  A description of procedures that identify

30  various risks and provide for a comprehensive approach to

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

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

 2  and protect others from violent or disruptive student

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

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

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

 6  thereof and the amounts of coverage.

 7         12.11.  The term of the charter which shall provide for

 8  cancellation of the charter if insufficient progress has been

 9  made in attaining the student achievement objectives of the

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

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

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

13  facilitate access to long-term financial resources for charter

14  school construction, charter schools that are operated by a

15  municipality or other public entity as provided by law are

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

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

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

19  facilitate access to long-term financial resources for charter

20  school construction, charter schools that are operated by a

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

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

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

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

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

26  the provisions set forth in subsection (8).

27         13.12.  The facilities to be used and their location.

28         14.13.  The qualifications to be required of the

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

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

31  

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 1         15.14.  The governance structure of the school,

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

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

 4         16.15.  A timetable for implementing the charter which

 5  addresses the implementation of each element thereof and the

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

 7  this timetable.

 8         17.16.  In the case of an existing public school being

 9  converted to charter status, alternative arrangements for

10  current students who choose not to attend the charter school

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

12  charter school after conversion in accordance with the

13  existing collective bargaining agreement or district school

14  board rule in the absence of a collective bargaining

15  agreement. However, alternative arrangements shall not be

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

17  charter lab school, except as authorized by the employment

18  policies of the state university which grants the charter to

19  the lab school.

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

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

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

23  grounds:

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

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

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

27  performance stated in the charter.

28         2.  Failure to meet generally accepted standards of

29  fiscal management.

30         3.  Violation of law.

31         4.  Other good cause shown.

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 1         (9)  CHARTER SCHOOL REQUIREMENTS.--

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

 3  exercise continuing oversight over charter school operations.

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

 5  verification shall be forwarded to the Commissioner of

 6  Education at the same time as other annual school

 7  accountability reports.  The report shall contain at least the

 8  following information:

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

10  goals outlined in its charter.

11         2.  The information required in the annual school

12  report pursuant to s. 1008.345.

13         3.  Financial records of the charter school, including

14  revenues and expenditures.

15         4.  Salary and benefit levels of charter school

16  employees.

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

18  report its progress annually to its sponsor, which shall

19  forward the report to the Commissioner of Education at the

20  same time as other annual school accountability reports. The

21  department shall include in its compilation a notation that

22  the school failed to file its report by the established

23  deadline. The guidelines shall include at least the following

24  components:

25         1.  Student achievement performance data, including the

26  information required for the annual school report and the

27  education accountability system governed by ss. 1008.31 and

28  1008.345. Charter schools are subject to the same

29  accountability requirements as other public schools, including

30  reports of student achievement information that links baseline

31  student data to the school's performance projections

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 1  identified in the charter. The charter school shall identify

 2  reasons for any difference between projected and actual

 3  student performance.

 4         2.  Financial status of the charter school, which must

 5  include revenues and expenditures at a level of detail which

 6  allows for analysis of the ability to meet financial

 7  obligations and timely repayment 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         (21)  SERVICES.--

 9         (a)  A sponsor shall provide certain administrative and

10  educational services to charter schools. These services shall

11  include contract management services, full-time equivalent and

12  data reporting services, exceptional student education

13  administration services, test administration services,

14  processing of teacher certificate data services, and

15  information services. The administrative fee charged by the

16  sponsor for the provision of services shall be limited to a

17  percentage of the available funds defined in paragraph (18)(b)

18  according to the following scale:

19         1.  Five percent for charter schools with a student

20  population less than 700 students.

21         2.  Three percent for charter schools with a student

22  population between 700-999 students.

23         3.  One percent for charter schools with a student

24  population of more than 1,000 students.

25  

26  Charter schools whose sponsor withholds less than a 5-percent

27  administrative fee may only use the difference between the

28  amount withheld and 5 percent for capital outlay purposes

29  specified in s. 1013.62(2). Any administrative fee charged by

30  the sponsor for the provision of services shall be limited to

31  5 percent of the available funds defined in paragraph (18)(b).

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

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

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

 4  Board of Education, the Governor, the Commissioner of

 5  Education, the President of the Senate, and the Speaker of the

 6  House of Representatives an analysis and comparison of the

 7  overall performance of charter school students, to include all

 8  students whose scores are counted as part of the statewide

 9  assessment program, versus comparable public school students

10  in the district as determined by the statewide assessment

11  program currently administered in the school district, and

12  other assessments administered pursuant to s. 1008.22(3).

13         Section 2.  Subsection (2) and paragraphs (c) and (h)

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

15  amended to read:

16         1002.32  Developmental research (laboratory) schools.--

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

18  public schools to be known as developmental research

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

20  provide sequential instruction and shall be affiliated with

21  the college of education within the state university of

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

23  has been issued under s. 1002.33(5)(a)2. s. 1002.33(5)(b) must

24  be affiliated with the college of education within the state

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

26  requirement that the state university be of closest geographic

27  proximity. For the purpose of state funding, Florida

28  Agricultural and Mechanical University, Florida Atlantic

29  University, Florida State University, the University of

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

31  Education and the Legislature are authorized to sponsor a lab

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 1  school one or more lab schools. The limitation of one lab

 2  school per university shall not apply to the following charter

 3  lab schools authorized prior to June 1, 2003: Florida State

 4  University Charter Lab Elementary School in Broward County;

 5  Florida Atlantic University Charter Lab 9-12 High School in

 6  Palm Beach County; and Florida Atlantic University Charter Lab

 7  K-12 School in St. Lucie County.

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

 9  charter lab school, shall be provided as follows:

10         (c)  All operating funds provided under this section

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

12  expended for the purposes of this section. The university

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

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

15  and expenditure of state funds shall apply to these funds

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

17  Education. The university board of trustees shall be the

18  public employer of lab school personnel for collective

19  bargaining purposes for lab schools in operation prior to the

20  2002-2003 fiscal year. Employees of charter lab schools

21  authorized prior to June 1, 2003, but not in operation prior

22  to the 2002-2003 fiscal year shall be employees of the entity

23  holding the charter and must comply with the provisions of s.

24  1002.33(12).

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

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

27  funding for charter school capital outlay if it meets the

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

29  receives funds from charter school capital outlay, the school

30  shall receive capital outlay funds otherwise provided in this

31  subsection only to the extent that funds allocated pursuant to

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

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

 3  station.

 4         Section 3.  Subsections (1) and (2) of section 1013.62,

 5  Florida Statutes, are amended, and subsection (7) is added to

 6  that section, to read:

 7         1013.62  Charter schools capital outlay funding.--

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

 9  charter school capital outlay purposes, the Commissioner of

10  Education shall allocate the funds among eligible charter

11  schools. To be eligible for a funding allocation, a charter

12  school must:

13         (a)1.  Have been in operation for 3 or more years;

14         2.  Be an expanded feeder chain of a charter school

15  within the same district that is currently receiving charter

16  school capital outlay funds; or

17         3.  Have been accredited by the Commission on Schools

18  of the Southern Association of Colleges and Schools.

19         (b)  Have financial stability for future operation as a

20  charter school;

21         (c)  Have satisfactory student achievement based on

22  state accountability standards applicable to the school;

23         (d)  Have received final approval from its sponsor

24  pursuant to s. 1002.33 for operation during that fiscal year;

25  and

26         (e)  Serve students in facilities that are not provided

27  by the charter's sponsor.

28  

29  meet the provisions of subsection (6), must have received

30  final approval from its sponsor pursuant to s. 1002.33 for

31  operation during that fiscal year, and must serve students in

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 1  facilities that are not provided by the charter school's

 2  sponsor. Prior to the release of capital outlay funds to a

 3  school district on behalf of the charter school, the

 4  Department of Education shall ensure that the district school

 5  board and the charter school governing board enter into a

 6  written agreement that includes provisions for the reversion

 7  of any unencumbered funds and all equipment and property

 8  purchased with public education funds to the ownership of the

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

10  the event that the school terminates operations. Any funds

11  recovered by the state shall be deposited in the General

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

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

14  school and operates in facilities provided by the charter

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

16  directly or indirectly operated by the school district. Unless

17  otherwise provided in the General Appropriations Act, the

18  funding allocation for each eligible charter school shall be

19  determined by multiplying the school's projected student

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

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

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

23  sufficient, the commissioner shall prorate the available funds

24  among eligible charter schools. Funds shall be distributed on

25  the basis of the capital outlay full-time equivalent

26  membership by grade level, which shall be calculated by

27  averaging the results of the second and third enrollment

28  surveys. The Department of Education shall distribute capital

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

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

31  reasonably expects the charter school to receive during that

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 1  fiscal year. The commissioner shall adjust subsequent

 2  distributions as necessary to reflect each charter school's

 3  actual student enrollment as reflected in the second and third

 4  enrollment surveys. The commissioner shall establish the

 5  intervals and procedures for determining the projected and

 6  actual student enrollment of eligible charter schools.

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

 8  school capital outlay funds for the following purposes any

 9  capital outlay purpose that is directly related to the

10  functioning of the charter school, including the:

11         (a)  Purchase of real property.

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

13  of school facilities.

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

15  relocatable school facilities.

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

17  from the charter school.

18         (e)  Renovation, repair, and maintenance of school

19  facilities that the charter school owns or is purchasing

20  through a lease-purchase or long-term lease of 5 years or

21  longer.

22         (7)  Notwithstanding the provisions of this section,

23  beginning in the 2003-2004 fiscal year, if the future

24  appropriation for charter school capital outlay funds is no

25  greater than the 2002-2003 appropriation, the future

26  appropriation shall be allocated to the same schools in the

27  same amount as the 2002-2003 appropriation was allocated. If

28  the future appropriation is less than the 2002-2003

29  appropriation, the funds shall be prorated among the schools

30  that received an allocation in 2002-2003. If the future

31  appropriation is greater than the 2002-2003 appropriation,

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 1  first priority for allocating the amount in excess of the

 2  2002-2003 appropriation shall be to prorate the excess funds

 3  among the charter schools with long-term debt or a long-term

 4  lease to the extent that the initial allocation is

 5  insufficient to provide one-fifteenth of the cost per student

 6  station specified in s. 1013.64(6)(b), and the second priority

 7  shall be to other eligible charter schools.

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

 9  2003.

10  

11          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
12                          CS for SB 2242

13                                 

14  Eliminates the proposed Charter School Accountability and
    Funding Authority and keeps the funding for charter school
15  capital outlay within the control of the Legislature.

16  Revises eligibility for charter schools to receive capital
    outlay funds and revises the purposes for which charter school
17  capital outlay may be used.

18  Establishes a formula for distributing capital outlay funds in
    the future, if the Legislature chooses to maintain, decrease,
19  or increase the current level of funding.

20  Revises the charter school administrative services fee from a
    uniform rate of five percent to a three tier scale of 5% for
21  schools with less than 700 students; 3% for schools with 700
    to 999 students; and 1% for schools with more than 1,000
22  students.

23  

24  

25  

26  

27  

28  

29  

30  

31  

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