ENROLLED HB 0055A 2003 Legislature
1	A bill to be entitled
2	An act relating to charter schools; amending s. 1002.33,
3	F.S.; providing guiding principles; requiring an emphasis
4	on reading; requiring certain accountability measures;
5	authorizing community colleges to develop charter schools;
6	revising application requirements; requiring fiscal
7	projections in a charter application; extending the time
8	allowed for the State Board of Education to act on an
9	appeal; requiring auditors to provide notification of
10	certain financial conditions; providing additional
11	requirements for a charter school’s annual report;
12	eliminating limitations on the number of charter schools
13	per school district; revising administrative fees charged
14	by the sponsor for the provision of services; providing a
15	report to the Governor; amending s. 1002.32, F.S.;
16	correcting a cross reference; providing exceptions to the
17	one lab school per university limitation; revising
18	provisions relating to funding for lab schools; revising
19	provisions relating to employees of lab schools; amending
20	s. 1011.68, F.S.; correcting a cross reference; amending
21	s. 1013.62, F.S.; revising eligibility criteria for
22	charter school capital outlay funding; revising purposes
23	for charter school capital outlay funds; providing
24	allocation criteria for charter school capital outlay
25	appropriations; providing for construction of the act in
26	pari materia with laws enacted during Regular Session of
27	the Legislature; providing an effective date.
28
29	WHEREAS, in the 2002-2003 school year, Florida has 223
30	charter schools educating approximately 51,000 Florida students,
31	with a projected increase of 117 additional charter schools in
32	the next school year, and
33	WHEREAS, this rate of growth is a dramatic increase over
34	the prior averages of 36 charter schools per year, and
35	WHEREAS, while charter schools are public schools, their
36	unique populations or small size mean that few of them are
37	eligible for inclusion in the state’s accountability system,
38	with only 38 of the 173 charter schools receiving a school
39	performance grade in 2002, and
40	WHEREAS, the issue of charter school accountability is of
41	the utmost importance at this time of budget constraints and
42	heightened awareness of public ethics, NOW, THEREFORE,
43
44	Be It Enacted by the Legislature of the State of Florida:
45
46	Section 1. Subsections (2), (5), (6), (7), (8), (9), (10),
47	(13), (21), and (24) of section 1002.33, Florida Statutes, are
48	amended and present subsections (14) through (26) are renumbered
49	as subsections (13) through (25), respectively, to read:
50	1002.33 Charter schools.--
51	(2) GUIDING PRINCIPLES;PURPOSE.--
52	(a) Charter schools in Florida shall be guided by the
53	following principles:
54	1. Meet high standards of student achievement while
55	providing parents flexibility to choose among diverse
56	educational opportunities within the state’s public school
57	system.
58	2. Promote enhanced academic success and financial
59	efficiency by aligning responsibility with accountability.
60	3. Provide parents with sufficient information on whether
61	their child is reading at grade level and whether the child
62	gains at least a year’s worth of learning for every year spent
63	in the charter school.
64	(b)(a)Charter schools shall fulfill the following
65	purposes:
66	1. Improve student learning and academic achievement.
67	2. Increase learning opportunities for all students, with
68	special emphasis on low-performing students and reading.
69	3. Create new professional opportunities for teachers,
70	including ownership of the learning program at the school site.
71	4. Encourage the use of innovative learning methods.
72	5. Require the measurement of learning outcomes.
73	(c)(b)Charter schools may fulfill the following purposes:
74	1. Create innovative measurement tools.
75	2. Provide rigorous competition within the public school
76	district to stimulate continual improvement in all public
77	schools.
78	3. Expand the capacity of the public school system.
79	(5) SPONSOR; DUTIES.--
80	(a) Sponsoring entities.--
81	1.A district school board may sponsor a charter school in
82	the county over which the district school board has
83	jurisdiction.
84	2.(b)A state university may grant a charter to a lab
85	school created under s. 1002.32 and shall be considered to be
86	the school's sponsor. Such school shall be considered a charter
87	lab school.
88	(b) Sponsor duties.--
89	1.(c)The sponsor shall monitor and review the charter
90	school in its progress toward the goals established in the
91	charter.
92	2.(d)The sponsor shall monitor the revenues and
93	expenditures of the charter school.
94	3.(e)The sponsor may approve a charter for a charter
95	school before the applicant has secured space, equipment, or
96	personnel, if the applicant indicates approval is necessary for
97	it to raise working capital.
98	4.(f)The sponsor's policies shall not apply to a charter
99	school.
100	5.(g)TheAsponsor shall ensure that the charter is
101	innovative and consistent with the state education goals
102	established by s. 1000.03(5).
103	6. The sponsor shall ensure that the charter school
104	participates in the state’s education accountability system. If
105	a charter school falls short of performance measures included in
106	the approved charter, the sponsor shall report such shortcomings
107	to the Department of Education.
108
109	A community college may work with the school district or school
110	districts in its designated service area to develop charter
111	schools that offer secondary education. These charter schools
112	must include an option for students to receive an associate
113	degree upon high school graduation. District school boards shall
114	cooperate with and assist the community college on the charter
115	application. Community college applications for charter schools
116	are not subject to the time deadlines outlined in subsection (6)
117	and may be approved by the district school board at any time
118	during the year. Community colleges shall not report FTE for any
119	students who receive FTE funding through the Florida Education
120	Finance Program.
121	(6) APPLICATION PROCESS AND REVIEW.--Beginning September
122	1, 2003, applications are subject to the following requirements:
123	(a) A person or entity wishing to open a charter school
124	shall prepare an application that:
125	1. Demonstrates how the school will use the guiding
126	principles and meet the statutorily defined purpose of a charter
127	school.
128	2. Provides a detailed curriculum plan that illustrates
129	how students will be provided services to attain the Sunshine
130	State Standards.
131	3. Contains goals and objectives for improving student
132	learning and measuring that improvement. These goals and
133	objectives must indicate how much academic improvement students
134	are expected to show each year, how success will be evaluated,
135	and the specific results to be attained through instruction.
136	4. Describes the reading curriculum and differentiated
137	strategies that will be used for students reading at grade level
138	or higher and a separate curriculum and strategies for students
139	who are reading below grade level. A sponsor shall deny a
140	charter if the school does not propose a reading curriculum that
141	is consistent with effective teaching strategies that are
142	grounded in scientifically based reading research.
143	5. Contains an annual financial plan for each year
144	requested by the charter for operation of the school for up to 5
145	years. This plan must contain anticipated fund balances based on
146	revenue projections, a spending plan based on projected revenues
147	and expenses, and a description of controls that will safeguard
148	finances and projected enrollment trends.
149	(b)(a)A district school board shall receive and review
150	all applications for a charter school. A district school board
151	shall receive and consider charter school applications received
152	on or before September 1October 1of each calendar year for
153	charter schools to be opened at the beginning of the school
154	district's next school year, or to be opened at a time agreed to
155	by the applicant and the district school board. A district
156	school board may receive applications later than this date if it
157	chooses. A sponsor may not charge an applicant for a charter any
158	fee for the processing or consideration of an application, and a
159	sponsor may not base its consideration or approval of an
160	application upon the promise of future payment of any kind.
161	1. In order to facilitate an accurate budget projection
162	process, a district school board shall be held harmless for FTE
163	students who are not included in the FTE projection due to
164	approval of charter school applications after the FTE projection
165	deadline. In a further effort to facilitate an accurate budget
166	projection, within 15 calendar days after receipt of a charter
167	school application, a district school board or other sponsor
168	shall report to the Department of Education the name of the
169	applicant entity, the proposed charter school location, and its
170	projected FTE.
171	2. In order to ensure fiscal responsibility, an
172	application for a charter school shall include a full accounting
173	of expected assets, a projection of expected sources and amounts
174	of income, including income derived from projected student
175	enrollments and from community support, and an expense
176	projection that includes full accounting of the costs of
177	operation, including start-up costs.
178	3.2.A district school board shall by a majority vote
179	approve or deny an application no later than 60 calendar days
180	after the application is received, unless the district school
181	board and the applicant mutually agree to temporarily postpone
182	the vote to a specific date, at which time the district school
183	board shall by a majority vote approve or deny the application.
184	If the district school board fails to act on the application,
185	an applicant may appeal to the State Board of Education as
186	provided in paragraph (c)(b). If an application is denied, the
187	district school board shall, within 10 calendar days, articulate
188	in writing the specific reasons based upon good cause supporting
189	its denial of the charter application.
190	4.3.For budget projection purposes, the district school
191	board or other sponsor shall report to the Department of
192	Education the approval or denial of a charter application within
193	10 calendar days after such approval or denial. In the event of
194	approval, the report to the Department of Education shall
195	include the final projected FTE for the approved charter school.
196	5.4.Upon approval of a charter application, the initial
197	startup shall commence with the beginning of the public school
198	calendar for the district in which the charter is granted unless
199	the district school board allows a waiver of this provision for
200	good cause.
201	(c)(b)An applicant may appeal any denial of that
202	applicant's application or failure to act on an application to
203	the State Board of Education no later than 30 calendar days
204	after receipt of the district school board's decision or failure
205	to act and shall notify the district school board of its appeal.
206	Any response of the district school board shall be submitted to
207	the State Board of Education within 30 calendar days after
208	notification of the appeal. Upon receipt of notification from
209	the State Board of Education that a charter school applicant is
210	filing an appeal, the Commissioner of Education shall convene a
211	meeting of the Charter School Appeal Commission to study and
212	make recommendations to the State Board of Education regarding
213	its pending decision about the appeal. The commission shall
214	forward its recommendation to the state board no later than 7
215	calendar days prior to the date on which the appeal is to be
216	heard. The State Board of Education shall by majority vote
217	accept or reject the decision of the district school board no
218	later than 9060calendar days after an appeal is filed in
219	accordance with State Board of Education rule. The Charter
220	School Appeal Commission may reject an appeal submission for
221	failure to comply with procedural rules governing the appeals
222	process. The rejection shall describe the submission errors. The
223	appellant may have up to 15 calendar days from notice of
224	rejection to resubmit an appeal that meets requirements of State
225	Board of Education rule. An application for appeal submitted
226	subsequent to such rejection shall be considered timely if the
227	original appeal was filed within 30 calendar days after receipt
228	of notice of the specific reasons for the district school
229	board's denial of the charter application. The State Board of
230	Education shall remand the application to the district school
231	board with its written decision that the district school board
232	approve or deny the application. The district school board shall
233	implement the decision of the State Board of Education. The
234	decision of the State Board of Education is not subject to the
235	provisions of the Administrative Procedure Act, chapter 120.
236	(d)(c)The district school board shall act upon the
237	decision of the State Board of Education within 30 calendar days
238	after it is received. The State Board of Education's decision is
239	a final action subject to judicial review.
240	(e)(d)1. A Charter School Appeal Commission is established
241	to assist the commissioner and the State Board of Education with
242	a fair and impartial review of appeals by applicants whose
243	charters have been denied or whose charter contracts have not
244	been renewed by their sponsors.
245	2. The Charter School Appeal Commission may receive copies
246	of the appeal documents forwarded to the State Board of
247	Education, review the documents, gather other applicable
248	information regarding the appeal, and make a written
249	recommendation to the commissioner. The recommendation must
250	state whether the appeal should be upheld or denied and include
251	the reasons for the recommendation being offered. The
252	commissioner shall forward the recommendation to the State Board
253	of Education no later than 7 calendar days prior to the date on
254	which the appeal is to be heard. The state board must consider
255	the commission's recommendation in making its decision, but is
256	not bound by the recommendation. The decision of the Charter
257	School Appeal Commission is not subject to the provisions of the
258	Administrative Procedure Act, chapter 120.
259	3. The commissioner shall appoint the members of the
260	Charter School Appeal Commission. Members shall serve without
261	compensation but may be reimbursed for travel and per diem
262	expenses in conjunction with their service. One-half of the
263	members must represent currently operating charter schools, and
264	one-half of the members must represent school districts. The
265	commissioner or a named designee shall chair the Charter School
266	Appeal Commission.
267	4. The chair shall convene meetings of the commission and
268	shall ensure that the written recommendations are completed and
269	forwarded in a timely manner. In cases where the commission
270	cannot reach a decision, the chair shall make the written
271	recommendation with justification, noting that the decision was
272	rendered by the chair.
273	5. Commission members shall thoroughly review the
274	materials presented to them from the appellant and the sponsor.
275	The commission may request information to clarify the
276	documentation presented to it. In the course of its review, the
277	commission may facilitate the postponement of an appeal in those
278	cases where additional time and communication may negate the
279	need for a formal appeal and both parties agree, in writing, to
280	postpone the appeal to the State Board of Education. A new date
281	certain for the appeal shall then be set based upon the rules
282	and procedures of the State Board of Education. Commission
283	members shall provide a written recommendation to the state
284	board as to whether the appeal should be upheld or denied. A
285	fact-based justification for the recommendation must be
286	included. The chair must ensure that the written recommendation
287	is submitted to the State Board of Education members no later
288	than 7 calendar days prior to the date on which the appeal is to
289	be heard. Both parties in the case shall also be provided a copy
290	of the recommendation.
291	(f)(e)The Department of Education may provide technical
292	assistance to an applicant upon written request.
293	(g)(f)In considering charter applications for a lab
294	school, a state university shall consult with the district
295	school board of the county in which the lab school is located.
296	The decision of a state university may be appealed pursuant to
297	the procedure established in this subsection.
298	(h)(g)The terms and conditions for the operation of a
299	charter school shall be set forth by the sponsor and the
300	applicant in a written contractual agreement, called a charter.
301	The sponsor shall not impose unreasonable rules or regulations
302	that violate the intent of giving charter schools greater
303	flexibility to meet educational goals. The applicant and sponsor
304	shall have 6 months in which to mutually agree to the provisions
305	of the charter. The Department of Education shall provide
306	mediation services for any dispute regarding this section
307	subsequent to the approval of a charter application and for any
308	dispute relating to the approved charter, except disputes
309	regarding charter school application denials. If the
310	Commissioner of Education determines that the dispute cannot be
311	settled through mediation, the dispute may be appealed to an
312	administrative law judge appointed by the Division of
313	Administrative Hearings. The administrative law judge may rule
314	on issues of equitable treatment of the charter school as a
315	public school, whether proposed provisions of the charter
316	violate the intended flexibility granted charter schools by
317	statute, or on any other matter regarding this section except a
318	charter school application denial, and shall award the
319	prevailing party reasonable attorney's fees and costs incurred
320	to be paid by the losing party. The costs of the administrative
321	hearing shall be paid by the party whom the administrative law
322	judge rules against.
323	(7) CHARTER.--The major issues involving the operation of
324	a charter school shall be considered in advance and written into
325	the charter. The charter shall be signed by the governing body
326	of the charter school and the sponsor, following a public
327	hearing to ensure community input.
328	(a) The charter shall address, and criteria for approval
329	of the charter shall be based on:
330	1. The school's mission, the students to be served, and
331	the ages and grades to be included.
332	2. The focus of the curriculum, the instructional methods
333	to be used, any distinctive instructional techniques to be
334	employed, and identification and acquisition of appropriate
335	technologies needed to improve educational and administrative
336	performance which include a means for promoting safe, ethical,
337	and appropriate uses of technology which comply with legal and
338	professional standards. The charter shall ensure that reading is
339	a primary focus of the curriculum and that resources are
340	provided to identify and provide specialized instruction for
341	students who are reading below grade level. The curriculum and
342	instructional strategies for reading must be consistent with the
343	Sunshine State Standards and grounded in scientifically based
344	reading research.
345	3. The current incoming baseline standard of student
346	academic achievement, the outcomes to be achieved, and the
347	method of measurement that will be used. The criteria listed in
348	this subparagraph shall include a detailed description for each
349	of the following:
350	a. How the baseline student academic achievement levels
351	and prior rates of academic progress will be established.
352	b. How these baseline rates will be compared to rates of
353	academic progress achieved by these same students while
354	attending the charter school.
355	c. To the extent possible, how these rates of progress
356	will be evaluated and compared with rates of progress of other
357	closely comparable student populations.
358
359	The district school board is required to provide academic
360	student performance data to charter schools for each of their
361	students coming from the district school system, as well as
362	rates of academic progress of comparable student populations in
363	the district school system.
364	4. The methods used to identify the educational strengths
365	and needs of students and how well educational goals and
366	performance standards are met by students attending the charter
367	school. Included in the methods is a means for the charter
368	school to ensure accountability to its constituents by analyzing
369	student performance data and by evaluating the effectiveness and
370	efficiency of its major educational programs. Students in
371	charter schools shall, at a minimum, participate in the
372	statewide assessment program created under s. 1008.22.
373	5. In secondary charter schools, a method for determining
374	that a student has satisfied the requirements for graduation in
375	s. 1003.43.
376	6. A method for resolving conflicts between the governing
377	body of the charter school and the sponsor.
378	7. The admissions procedures and dismissal procedures,
379	including the school's code of student conduct.
380	8. The ways by which the school will achieve a
381	racial/ethnic balance reflective of the community it serves or
382	within the racial/ethnic range of other public schools in the
383	same school district.
384	9. The financial and administrative management of the
385	school, including a reasonable demonstration of the professional
386	experience or competence of those individuals or organizations
387	applying to operate the charter school or those hired or
388	retained to perform such professional services and the
389	description of clearly delineated responsibilities and the
390	policies and practices needed to effectively manage the charter
391	school. A description of internal audit procedures and
392	establishment of controls to ensure that financial resources are
393	properly managed must be included. Both public sector and
394	private sector professional experience shall be equally valid in
395	such a consideration.
396	10. The asset and liability projections required in the
397	application which are incorporated into the charter and which
398	shall be compared with information provided in the annual report
399	of the charter school. The charter shall ensure that, if a
400	charter school internal audit reveals a deficit financial
401	position, the auditors are required to notify the charter school
402	governing board, the sponsor, and the Department of Education.
403	The internal auditor shall report such findings in the form of
404	an exit interview to the principal or the principal
405	administrator of the charter school and the chair of the
406	governing board within 7 working days after finding the deficit
407	position. A final report shall be provided to the entire
408	governing board, the sponsor, and the Department of Education
409	within 14 working days after the exit interview.
410	11.10.A description of procedures that identify various
411	risks and provide for a comprehensive approach to reduce the
412	impact of losses; plans to ensure the safety and security of
413	students and staff; plans to identify, minimize, and protect
414	others from violent or disruptive student behavior; and the
415	manner in which the school will be insured, including whether or
416	not the school will be required to have liability insurance,
417	and, if so, the terms and conditions thereof and the amounts of
418	coverage.
419	12.11.The term of the charter which shall provide for
420	cancellation of the charter if insufficient progress has been
421	made in attaining the student achievement objectives of the
422	charter and if it is not likely that such objectives can be
423	achieved before expiration of the charter. The initial term of a
424	charter shall be for 3, 4, or 5 years. In order to facilitate
425	access to long-term financial resources for charter school
426	construction, charter schools that are operated by a
427	municipality or other public entity as provided by law are
428	eligible for up to a 15-year charter, subject to approval by the
429	district school board. A charter lab school is eligible for a
430	charter for a term of up to 15 years. In addition, to facilitate
431	access to long-term financial resources for charter school
432	construction, charter schools that are operated by a private,
433	not-for-profit, s. 501(c)(3) status corporation are eligible for
434	up to a 10-year charter, subject to approval by the district
435	school board. Such long-term charters remain subject to annual
436	review and may be terminated during the term of the charter, but
437	only for specific good cause according to the provisions set
438	forth in subsection (8).
439	13.12.The facilities to be used and their location.
440	14.13.The qualifications to be required of the teachers
441	and the potential strategies used to recruit, hire, train, and
442	retain qualified staff to achieve best value.
443	15.14.The governance structure of the school, including
444	the status of the charter school as a public or private employer
445	as required in paragraph (12)(i).
446	16.15.A timetable for implementing the charter which
447	addresses the implementation of each element thereof and the
448	date by which the charter shall be awarded in order to meet this
449	timetable.
450	17.16.In the case of an existing public school being
451	converted to charter status, alternative arrangements for
452	current students who choose not to attend the charter school and
453	for current teachers who choose not to teach in the charter
454	school after conversion in accordance with the existing
455	collective bargaining agreement or district school board rule in
456	the absence of a collective bargaining agreement. However,
457	alternative arrangements shall not be required for current
458	teachers who choose not to teach in a charter lab school, except
459	as authorized by the employment policies of the state university
460	which grants the charter to the lab school.
461	(b) A charter may be renewed every 5 school years,
462	provided that a program review demonstrates that the criteria in
463	paragraph (a) have been successfully accomplished and that none
464	of the grounds for nonrenewal established by paragraph (8)(a)
465	has been documented. In order to facilitate long-term financing
466	for charter school construction, charter schools operating for a
467	minimum of 2 years and demonstrating exemplary academic
468	programming and fiscal management are eligible for a 15-year
469	charter renewal. Such long-term charter is subject to annual
470	review and may be terminated during the term of the charter.
471	(c) A charter may be modified during its initial term or
472	any renewal term upon the recommendation of the sponsor or the
473	charter school governing board and the approval of both parties
474	to the agreement.
475	(8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
476	(a) At the end of the term of a charter, the sponsor may
477	choose not to renew the charter for any of the following
478	grounds:
479	1. Failure to participate in the state's education
480	accountability system created in s. 1008.31, as required in this
481	section, or failure tomeet the requirements for student
482	performance stated in the charter.
483	2. Failure to meet generally accepted standards of fiscal
484	management.
485	3. Violation of law.
486	4. Other good cause shown.
487	(b) During the term of a charter, the sponsor may
488	terminate the charter for any of the grounds listed in paragraph
489	(a).
490	(c) At least 90 days prior to renewing or terminating a
491	charter, the sponsor shall notify the governing body of the
492	school of the proposed action in writing. The notice shall state
493	in reasonable detail the grounds for the proposed action and
494	stipulate that the school's governing body may, within 14
495	calendar days after receiving the notice, request an informal
496	hearing before the sponsor. The sponsor shall conduct the
497	informal hearing within 30 calendar days after receiving a
498	written request. The charter school's governing body may, within
499	14 calendar days after receiving the sponsor's decision to
500	terminate or refuse to renew the charter, appeal the decision
501	pursuant to the procedure established in subsection (6).
502	(d) A charter may be terminated immediately if the sponsor
503	determines that good cause has been shown or if the health,
504	safety, or welfare of the students is threatened. The school
505	district in which the charter school is located shall assume
506	operation of the school under these circumstances. The charter
507	school's governing board may, within 14 days after receiving the
508	sponsor's decision to terminate the charter, appeal the decision
509	pursuant to the procedure established in subsection (6).
510	(e) When a charter is not renewed or is terminated, the
511	school shall be dissolved under the provisions of law under
512	which the school was organized, and any unencumbered public
513	funds from the charter school shall revert to the district
514	school board. In the event a charter school is dissolved or is
515	otherwise terminated, all district school board property and
516	improvements, furnishings, and equipment purchased with public
517	funds shall automatically revert to full ownership by the
518	district school board, subject to complete satisfaction of any
519	lawful liens or encumbrances. Any unencumbered public funds from
520	the charter school, district school board property and
521	improvements, furnishings, and equipment purchased with public
522	funds, or financial or other records pertaining to the charter
523	school, in the possession of any person, entity, or holding
524	company, other than the charter school, shall be held in trust
525	upon the district school board's request, until any appeal
526	status is resolved.
527	(f) If a charter is not renewed or is terminated, the
528	charter school is responsible for all debts of the charter
529	school. The district may not assume the debt from any contract
530	for services made between the governing body of the school and a
531	third party, except for a debt that is previously detailed and
532	agreed upon in writing by both the district and the governing
533	body of the school and that may not reasonably be assumed to
534	have been satisfied by the district.
535	(g) If a charter is not renewed or is terminated, a
536	student who attended the school may apply to, and shall be
537	enrolled in, another public school. Normal application deadlines
538	shall be disregarded under such circumstances.
539	(9) CHARTER SCHOOL REQUIREMENTS.--
540	(a) A charter school shall be nonsectarian in its
541	programs, admission policies, employment practices, and
542	operations.
543	(b) A charter school shall admit students as provided in
544	subsection (10).
545	(c) A charter school shall be accountable to its sponsor
546	for performance as provided in subsection (7).
547	(d) A charter school shall not charge tuition or
548	registration fees, except those fees normally charged by other
549	public schools. However, a charter lab school may charge a
550	student activity and service fee as authorized by s. 1002.32(5).
551	(e) A charter school shall meet all applicable state and
552	local health, safety, and civil rights requirements.
553	(f) A charter school shall not violate the
554	antidiscrimination provisions of s. 1000.05.
555	(g) A charter school shall provide for an annual financial
556	audit in accordance with s. 218.39.
557	(h) No organization shall hold more than 15 charters
558	statewide.
559	(i) In order to provide financial information that is
560	comparable to that reported for other public schools, charter
561	schools are to maintain all financial records which constitute
562	their accounting system:
563	1. In accordance with the accounts and codes prescribed in
564	the most recent issuance of the publication titled "Financial
565	and Program Cost Accounting and Reporting for Florida Schools";
566	or
567	2. At the discretion of the charter school governing
568	board, a charter school may elect to follow generally accepted
569	accounting standards for not-for-profit organizations, but must
570	reformat this information for reporting according to this
571	paragraph.
572
573	Charter schools are to provide annual financial report and
574	program cost report information in the state-required formats
575	for inclusion in district reporting in compliance with s.
576	1011.60(1). Charter schools that are operated by a municipality
577	or are a component unit of a parent nonprofit organization may
578	use the accounting system of the municipality or the parent but
579	must reformat this information for reporting according to this
580	paragraph.
581	(j) The governing board of the charter school shall
582	annually adopt and maintain an operating budget.
583	(k) The governing body of the charter school shall
584	exercise continuing oversight over charter school operations and
585	make annual progress reports to its sponsor, which upon
586	verification shall be forwarded to the Commissioner of Education
587	at the same time as other annual school accountability reports.
588	The report shall contain at least the following information:
589	(l) The governing body of the charter school shall report
590	its progress annually to its sponsor, which shall forward the
591	report to the Commissioner of Education at the same time as
592	other annual school accountability reports. The Department of
593	Education shall include in its compilation a notation if a
594	school failed to file its report by the deadline established by
595	the department. The report shall include at least the following
596	components:
597	1. Student achievement performance data, including the
598	information required for the annual school report and the
599	education accountability system governed by ss. 1008.31 and
600	1008.345. Charter schools are subject to the same accountability
601	requirements as other public schools, including reports of
602	student achievement information that links baseline student data
603	to the school’s performance projections identified in the
604	charter. The charter school shall identify reasons for any
605	difference between projected and actual student performanceThe
606	charter school's progress toward achieving the goals outlined in
607	its charter.
608	2. Financial status of the charter school which must
609	include revenues and expenditures at a level of detail that
610	allows for analysis of the ability to meet financial obligations
611	and timely repayment of debtThe information required in the
612	annual school report pursuant to s. 1008.345.
613	3. Documentation of the facilities in current use and any
614	planned facilities for use by the charter school for instruction
615	of students, administrative functions, or investment purposes
616	Financial records of the charter school, including revenues and
617	expenditures.
618	4. Descriptive information about the charter school's
619	personnel, includingsalary and benefit levels of charter school
620	employees, the proportion of instructional personnel who hold
621	professional or temporary certificates, and the proportion of
622	instructional personnel teaching in-field or out-of-field.
623	(m)(l)A charter school shall not levy taxes or issue
624	bonds secured by tax revenues.
625	(n)(m)A charter school shall provide instruction for at
626	least the number of days required by law for other public
627	schools, and may provide instruction for additional days.
628	(10) ELIGIBLE STUDENTS.--
629	(a) A charter school shall be open to any student covered
630	in an interdistrict agreement or residing in the school district
631	in which the charter school is located; however, in the case of
632	a charter lab school, the charter lab school shall be open to
633	any student eligible to attend the lab school as provided in s.
634	1002.32 or who resides in the school district in which the
635	charter lab school is located. Any eligible student shall be
636	allowed interdistrict transfer to attend a charter school when
637	based on good cause.
638	(b) The charter school shall enroll an eligible student
639	who submits a timely application, unless the number of
640	applications exceeds the capacity of a program, class, grade
641	level, or building. In such case, all applicants shall have an
642	equal chance of being admitted through a random selection
643	process.
644	(c) When a public school converts to charter status,
645	enrollment preference shall be given to students who would have
646	otherwise attended that public school.
647	(d) A charter school may give enrollment preference to the
648	following student populations:
649	1. Students who are siblings of a student enrolled in the
650	charter school.
651	2. Students who are the children of a member of the
652	governing board of the charter school.
653	3. Students who are the children of an employee of the
654	charter school.
655	(e) A charter school may limit the enrollment process only
656	to target the following student populations:
657	1. Students within specific age groups or grade levels.
658	2. Students considered at risk of dropping out of school
659	or academic failure. Such students shall include exceptional
660	education students.
661	3. Students enrolling in a charter school-in-the-workplace
662	or charter school-in-a-municipality established pursuant to
663	subsection (15)(16).
664	4. Students residing within a reasonable distance of the
665	charter school, as described in paragraph (20)(21)(c). Such
666	students shall be subject to a random lottery and to the
667	racial/ethnic balance provisions described in subparagraph
668	(7)(a)8. or any federal provisions that require a school to
669	achieve a racial/ethnic balance reflective of the community it
670	serves or within the racial/ethnic range of other public schools
671	in the same school district.
672	5. Students who meet reasonable academic, artistic, or
673	other eligibility standards established by the charter school
674	and included in the charter school application and charter or,
675	in the case of existing charter schools, standards that are
676	consistent with the school's mission and purpose. Such standards
677	shall be in accordance with current state law and practice in
678	public schools and may not discriminate against otherwise
679	qualified individuals.
680	6. Students articulating from one charter school to
681	another pursuant to an articulation agreement between the
682	charter schools that has been approved by the sponsor.
683	(f) Students with handicapping conditions and students
684	served in English for Speakers of Other Languages programs shall
685	have an equal opportunity of being selected for enrollment in a
686	charter school.
687	(g) A student may withdraw from a charter school at any
688	time and enroll in another public school as determined by
689	district school board rule.
690	(h) The capacity of the charter school shall be determined
691	annually by the governing board, in conjunction with the
692	sponsor, of the charter school in consideration of the factors
693	identified in this subsection.
694	(13) NUMBER OF SCHOOLS.--
695	(a) The number of newly created charter schools is limited
696	to no more than 28 in each school district that has 100,000 or
697	more students, no more than 20 in each school district that has
698	50,000 to 99,999 students, and no more than 12 in each school
699	district with fewer than 50,000 students.
700	(b) An existing public school which converts to a charter
701	school shall not be counted toward the limit established by
702	paragraph (a).
703	(c) Notwithstanding any limit established by this
704	subsection, a district school board or a charter school
705	applicant shall have the right to request an increase of the
706	limit on the number of charter schools authorized to be
707	established within the district from the State Board of
708	Education.
709	(d) Whenever a municipality has submitted charter
710	applications for the establishment of a charter school feeder
711	pattern (elementary, middle, and senior high schools), and upon
712	approval of each individual charter application by the district
713	school board, such applications shall then be designated as one
714	charter school for all purposes listed pursuant to this section.
715	(20)(21)SERVICES.--
716	(a) A sponsor shall provide certain administrative and
717	educational services to charter schools. These services shall
718	include contract management services, full-time equivalent and
719	data reporting services, exceptional student education
720	administration services, test administration services,
721	processing of teacher certificate data services, and information
722	services. A total administrative fee for the provision of such
723	services shall be calculated based upon 5 percent of the
724	available funds defined in paragraph (17)(b) for all students.
725	However, a sponsor may only withhold a 5-percent administrative
726	fee for enrollment for up to and including 500 students. For
727	charter schools with a population of 501 or more students, the
728	difference between the total administrative fee calculation and
729	the amount of the administrative fee withheld may only be used
730	for capital outlay purposes specified in s. 1013.62(2)Any
731	administrative fee charged by the sponsor for the provision of
732	services shall be limited to 5 percent of the available funds
733	defined in paragraph (18)(b).
734	(b) If goods and services are made available to the
735	charter school through the contract with the school district,
736	they shall be provided to the charter school at a rate no
737	greater than the district's actual cost. To maximize the use of
738	state funds, school districts shall allow charter schools to
739	participate in the sponsor's bulk purchasing program if
740	applicable.
741	(c) Transportation of charter school students shall be
742	provided by the charter school consistent with the requirements
743	of subpart I.e. of chapter 1006. The governing body of the
744	charter school may provide transportation through an agreement
745	or contract with the district school board, a private provider,
746	or parents. The charter school and the sponsor shall cooperate
747	in making arrangements that ensure that transportation is not a
748	barrier to equal access for all students residing within a
749	reasonable distance of the charter school as determined in its
750	charter.
751	(23)(24)ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon
752	receipt of the annual report required by paragraph (9)(l)(9)(k),
753	the Department of Education shall provide to the State Board of
754	Education, the Commissioner of Education, the Governor,the
755	President of the Senate, and the Speaker of the House of
756	Representatives an analysis and comparison of the overall
757	performance of charter school students, to include all students
758	whose scores are counted as part of the statewide assessment
759	program, versus comparable public school students in the
760	district as determined by the statewide assessment program
761	currently administered in the school district, and other
762	assessments administered pursuant to s. 1008.22(3).
763	Section 2. Subsection (2) and paragraphs (a), (c), and (h)
764	of subsection (9) of section 1002.32, Florida Statutes, are
765	amended to read:
766	1002.32 Developmental research (laboratory) schools.--
767	(2) ESTABLISHMENT.--There is established a category of
768	public schools to be known as developmental research
769	(laboratory) schools (lab schools). Each lab school shall
770	provide sequential instruction and shall be affiliated with the
771	college of education within the state university of closest
772	geographic proximity. A lab school to which a charter has been
773	issued under s. 1002.33(5)(a)2.(5)(b)must be affiliated with
774	the college of education within the state university that issued
775	the charter, but is not subject to the requirement that the
776	state university be of closest geographic proximity. For the
777	purpose of state funding, Florida Agricultural and Mechanical
778	University, Florida Atlantic University, Florida State
779	University, the University of Florida, and other universities
780	approved by the State Board of Education and the Legislature are
781	authorized to sponsor a lab schoolone or more lab schools. The
782	limitation of one lab school per university shall not apply to
783	the following charter lab schools authorized prior to June 1,
784	2003: Florida State University Charter Lab Elementary School in
785	Broward County, Florida Atlantic University Charter Lab 9-12
786	High School in Palm Beach County, and Florida Atlantic
787	University Charter Lab K-12 School in St. Lucie County.
788	(9) FUNDING.--Funding for a lab school, including a
789	charter lab school, shall be provided as follows:
790	(a) Each lab school shall be allocated its proportional
791	share of operating funds from the Florida Education Finance
792	Program as provided in s. 1011.62 and the General Appropriations
793	Act. The nonvoted ad valorem millage that would otherwise be
794	required for lab schools shall be allocated from state funds.
795	The required local effort funds calculated pursuant to s.
796	1011.62 shall be allocated from state funds to the schools as a
797	part of the allocation of operating funds pursuant to s.
798	1011.62. Each eligible lab school in operation as of September
799	1, 2002,shall also receive a proportional share of the sparsity
800	supplement as calculated pursuant to s. 1011.62. In addition,
801	each lab school shall receive its proportional share of all
802	categorical funds, with the exception of s. 1011.68, and new
803	categorical funds enacted after July 1, 1994, for the purpose of
804	elementary or secondary academic program enhancement. The sum of
805	funds available as provided in this paragraph shall be included
806	annually in the Florida Education Finance Program and
807	appropriate categorical programs funded in the General
808	Appropriations Act.
809	(c) All operating funds provided under this section shall
810	be deposited in a Lab School Trust Fund and shall be expended
811	for the purposes of this section. The university assigned a lab
812	school shall be the fiscal agent for these funds, and all rules
813	of the university governing the budgeting and expenditure of
814	state funds shall apply to these funds unless otherwise provided
815	by law or rule of the State Board of Education. The university
816	board of trustees shall be the public employer of lab school
817	personnel for collective bargaining purposes for lab schools in
818	operation prior to the 2002-2003 fiscal year. Employees of
819	charter lab schools authorized prior to June 1, 2003, but not in
820	operation prior to the 2002-2003 fiscal year shall be employees
821	of the entity holding the charter and must comply with the
822	provisions of s. 1002.33(12).
823	(h) A lab school to which a charter has been issued under
824	s. 1002.33(5)(a)2.(5)(b)is eligible to receive funding for
825	charter school capital outlay if it meets the eligibility
826	requirements of s. 1013.62. If the lab school receives funds
827	from charter school capital outlay, the school shall receive
828	capital outlay funds otherwise provided in this subsection only
829	to the extent that funds allocated pursuant to s. 1013.62 are
830	insufficient to provide capital outlay funds to the lab school
831	at one-fifteenth of the cost per student station.
832	Section 3. Section 1011.68, Florida Statutes, is amended
833	to read:
834	1011.68 Funds for student transportation.--The annual
835	allocation to each district for transportation to public school
836	programs, including charter schools as provided in s.
837	1002.33(17)(18)(b), of students in membership in kindergarten
838	through grade 12 and in migrant and exceptional student programs
839	below kindergarten shall be determined as follows:
840	(1) Subject to the rules of the State Board of Education,
841	each district shall determine the membership of students who are
842	transported:
843	(a) By reason of living 2 miles or more from school.
844	(b) By reason of being students with disabilities or
845	enrolled in a teenage parent program, regardless of distance to
846	school.
847	(c) By reason of being in a state prekindergarten program,
848	regardless of distance from school.
849	(d) By reason of being career and technical, dual
850	enrollment, or students with disabilities transported from one
851	school center to another to participate in an instructional
852	program or service; or students with disabilities, transported
853	from one designation to another in the state, provided one
854	designation is a school center and provided the student's
855	individual educational plan (IEP) identifies the need for the
856	instructional program or service and transportation to be
857	provided by the school district. A "school center" is defined as
858	a public school center, community college, state university, or
859	other facility rented, leased, or owned and operated by the
860	school district or another public agency. A "dual enrollment
861	student" is defined as a public school student in membership in
862	both a public secondary school program and a community college
863	or a state university program under a written agreement to
864	partially fulfill ss. 1003.435 and 1007.23 and earning full-time
865	equivalent membership under s. 1011.62(1)(i).
866	(e) With respect to elementary school students whose grade
867	level does not exceed grade 6, by reason of being subjected to
868	hazardous walking conditions en route to or from school as
869	provided in s. 1006.23. Such rules shall, when appropriate,
870	provide for the determination of membership under this paragraph
871	for less than 1 year to accommodate the needs of students who
872	require transportation only until such hazardous conditions are
873	corrected.
874	(f) By reason of being a pregnant student or student
875	parent, and the child of a student parent as provided in s.
876	1003.54, regardless of distance from school.
877	(2) The allocation for each district shall be calculated
878	annually in accordance with the following formula:
879
880	T = B + EX. The elements of this formula are defined as follows:
881	T is the total dollar allocation for transportation. B is the
882	base transportation dollar allocation prorated by an adjusted
883	student membership count. The adjusted membership count shall be
884	derived from a multiplicative index function in which the base
885	student membership is adjusted by multiplying it by index
886	numbers that individually account for the impact of the price
887	level index, average bus occupancy, and the extent of rural
888	population in the district. EX is the base transportation dollar
889	allocation for disabled students prorated by an adjusted
890	disabled student membership count. The base transportation
891	dollar allocation for disabled students is the total state base
892	disabled student membership count weighted for increased costs
893	associated with transporting disabled students and multiplying
894	it by the prior year's average per student cost for
895	transportation. The adjusted disabled student membership count
896	shall be derived from a multiplicative index function in which
897	the weighted base disabled student membership is adjusted by
898	multiplying it by index numbers that individually account for
899	the impact of the price level index, average bus occupancy, and
900	the extent of rural population in the district. Each adjustment
901	factor shall be designed to affect the base allocation by no
902	more or less than 10 percent.
903	(3) The total allocation to each district for
904	transportation of students shall be the sum of the amounts
905	determined in subsection (2). If the funds appropriated for the
906	purpose of implementing this section are not sufficient to pay
907	the base transportation allocation and the base transportation
908	allocation for disabled students, the Department of Education
909	shall prorate the available funds on a percentage basis. If the
910	funds appropriated for the purpose of implementing this section
911	exceed the sum of the base transportation allocation and the
912	base transportation allocation for disabled students, the base
913	transportation allocation for disabled students shall be limited
914	to the amount calculated in subsection (2), and the remaining
915	balance shall be added to the base transportation allocation.
916	(4) No district shall use funds to purchase transportation
917	equipment and supplies at prices which exceed those determined
918	by the department to be the lowest which can be obtained, as
919	prescribed in s. 1006.27(1).
920	(5) Funds allocated or apportioned for the payment of
921	student transportation services may be used to pay for
922	transportation of students to and from school on local general
923	purpose transportation systems. Student transportation funds may
924	also be used to pay for transportation of students to and from
925	school in private passenger cars and boats when the
926	transportation is for isolated students, or students with
927	disabilities as defined by rule. Subject to the rules of the
928	State Board of Education, each school district shall determine
929	and report the number of assigned students using general purpose
930	transportation private passenger cars and boats. The allocation
931	per student must be equal to the allocation per student riding a
932	school bus.
933	(6) Notwithstanding other provisions of this section, in
934	no case shall any student or students be counted for
935	transportation funding more than once per day. This provision
936	includes counting students for funding pursuant to trips in
937	school buses, passenger cars, or boats or general purpose
938	transportation.
939	(7) Any funds received by a school district under this
940	section that are not required to transport students may, at the
941	discretion of the district school board, be transferred to the
942	district's Florida Education Finance Program.
943	Section 4. Section 1013.62, Florida Statutes, is amended
944	to read:
945	1013.62 Charter schools capital outlay funding.--
946	(1) In each year in which funds are appropriated for
947	charter school capital outlay purposes, the Commissioner of
948	Education shall allocate the funds among eligible charter
949	schools. To be eligible for a funding allocation, a charter
950	school must:
951	(a)1. Have been in operation for 3 or more years;
952	2. Be an expanded feeder chain of a charter school within
953	the same school district that is currently receiving charter
954	school capital outlay funds; or
955	3. Have been accredited by the Commission on Schools of
956	the Southern Association of Colleges and Schools.
957	(b) Have financial stability for future operation as a
958	charter school.
959	(c) Have satisfactory student achievement based on state
960	accountability standards applicable to the charter school.
961	(d) Have received final approval from its sponsor pursuant
962	to s. 1002.33 for operation during that fiscal year.
963	(e) Serve students in facilities that are not provided by
964	the charter school's sponsormeet the provisions of subsection
965	(6), must have received final approval from its sponsor pursuant
966	to s. 1002.33 for operation during that fiscal year, and must
967	serve students in facilities that are not provided by the
968	charter school's sponsor.
969
970	Prior to the release of capital outlay funds to a school
971	district on behalf of the charter school, the Department of
972	Education shall ensure that the district school board and the
973	charter school governing board enter into a written agreement
974	that includes provisions for the reversion of any unencumbered
975	funds and all equipment and property purchased with public
976	education funds to the ownership of the district school board,
977	as provided for in subsection (3), in the event that the school
978	terminates operations. Any funds recovered by the state shall be
979	deposited in the General Revenue Fund. A charter school is not
980	eligible for a funding allocation if it was created by the
981	conversion of a public school and operates in facilities
982	provided by the charter school's sponsor for a nominal fee or at
983	no charge or if it is directly or indirectly operated by the
984	school district. Unless otherwise provided in the General
985	Appropriations Act, the funding allocation for each eligible
986	charter school shall be determined by multiplying the school's
987	projected student enrollment by one-fifteenth of the cost-per-
988	student station specified in s. 1013.64(6)(b) for an elementary,
989	middle, or high school, as appropriate. If the funds
990	appropriated are not sufficient, the commissioner shall prorate
991	the available funds among eligible charter schools. However, no
992	charter school or charter lab school shall receive state charter
993	school capital outlay funds in excess of the one-fifteenth cost
994	per student station formula if the charter school’s combination
995	of state charter school capital outlay funds, capital outlay
996	funds calculated through the reduction in the administrative fee
997	provided in s. 1002.33(20), and capital outlay funds allowed in
998	s. 1002.32(9)(e) and (h) exceeds the one-fifteenth cost per
999	student station formula.Funds shall be distributed on the basis
1000	of the capital outlay full-time equivalent membership by grade
1001	level, which shall be calculated by averaging the results of the
1002	second and third enrollment surveys. The Department of Education
1003	shall distribute capital outlay funds monthly, beginning in the
1004	first quarter of the fiscal year, based on one-twelfth of the
1005	amount the department reasonably expects the charter school to
1006	receive during that fiscal year. The commissioner shall adjust
1007	subsequent distributions as necessary to reflect each charter
1008	school's actual student enrollment as reflected in the second
1009	and third enrollment surveys. The commissioner shall establish
1010	the intervals and procedures for determining the projected and
1011	actual student enrollment of eligible charter schools.
1012	(2) A charter school's governing body may use charter
1013	school capital outlay funds for the following purposesany
1014	capital outlay purpose that is directly related to the
1015	functioning of the charter school, including the:
1016	(a) Purchase of real property.
1017	(b) Construction, renovation, repair, and maintenanceof
1018	school facilities.
1019	(c) Purchase, lease-purchase, or lease of permanent or
1020	relocatable school facilities.
1021	(d) Purchase of vehicles to transport students to and from
1022	the charter school.
1023	(e) Renovation, repair, and maintenance of school
1024	facilities that the charter school owns or is purchasing through
1025	a lease-purchase or long-term lease of 5 years or longer.
1026
1027	Conversion charter schools may use capital outlay funds received
1028	through the reduction in the administrative fee provided in s.
1029	1002.33(20) for renovation, repair, and maintenance of school
1030	facilities that are owned by the sponsor.
1031	(3) When a charter school is nonrenewed or terminated, any
1032	unencumbered funds and all equipment and property purchased with
1033	district public funds shall revert to the ownership of the
1034	district school board, as provided for in s. 1002.33(8)(e) and
1035	(f). In the case of a charter lab school, any unencumbered funds
1036	and all equipment and property purchased with university public
1037	funds shall revert to the ownership of the state university that
1038	issued the charter. The reversion of such equipment, property,
1039	and furnishings shall focus on recoverable assets, but not on
1040	intangible or irrecoverable costs such as rental or leasing
1041	fees, normal maintenance, and limited renovations. The reversion
1042	of all property secured with public funds is subject to the
1043	complete satisfaction of all lawful liens or encumbrances. If
1044	there are additional local issues such as the shared use of
1045	facilities or partial ownership of facilities or property, these
1046	issues shall be agreed to in the charter contract prior to the
1047	expenditure of funds.
1048	(4) The Commissioner of Education shall specify procedures
1049	for submitting and approving requests for funding under this
1050	section and procedures for documenting expenditures.
1051	(5) The annual legislative budget request of the
1052	Department of Education shall include a request for capital
1053	outlay funding for charter schools. The request shall be based
1054	on the projected number of students to be served in charter
1055	schools who meet the eligibility requirements of this section. A
1056	dedicated funding source, if identified in writing by the
1057	Commissioner of Education and submitted along with the annual
1058	charter school legislative budget request, may be considered an
1059	additional source of funding.
1060	(6) Unless authorized otherwise by the Legislature,
1061	allocation and proration of charter school capital outlay funds
1062	shall be made to eligible charter schools by the Commissioner of
1063	Education in an amount and in a manner authorized by subsection
1064	(1).
1065	(7) Notwithstanding the provisions of this section,
1066	beginning in the 2003-2004 fiscal year:
1067	(a) If the appropriation for charter school capital outlay
1068	funds is no greater than the 2002-2003 appropriation, the funds
1069	shall be allocated according to the formula outlined in
1070	subsection (1) to:
1071	1. The same schools that received funding in 2002-2003.
1072	2. Schools that are an expanded feeder pattern of schools
1073	that received funding in 2002-2003.
1074	3. Schools that have an approved charter and are serving
1075	students at the start of the 2003-2004 school year and either
1076	incurred long-term financial obligations prior to January 31,
1077	2003, or began construction on educational facilities prior to
1078	December 31, 2002.
1079	(b) If the appropriation for charter school capital outlay
1080	funds is less than the 2002-2003 appropriation, the funds shall
1081	be prorated among the schools eligible in paragraph (a).
1082	(c) If the appropriation for charter school capital outlay
1083	funds is greater than the 2002-2003 appropriation, the amount of
1084	funds provided in the 2002-2003 appropriation shall be allocated
1085	according to paragraph (a). First priority for allocating the
1086	amount in excess of the 2002-2003 appropriation shall be to
1087	prorate the excess funds among the charter schools with long-
1088	term debt or long-term lease to the extent that the initial
1089	allocation is insufficient to provide one-fifteenth of the cost
1090	per student station specified in s. 1013.64(6)(b), and second
1091	priority shall be to other eligible charter schools.
1092	Section 5. If any law amended by this act was also amended
1093	by a law enacted at the 2003 Regular Session of the Legislature,
1094	such laws shall be construed as if they had been enacted at the
1095	same session of the Legislature, and full effect shall be given
1096	to each if possible.
1097	Section 6. This act shall take effect July 1, 2003.