HB 1323

CS

CHAMBER ACTION

1	The Education Appropriations Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to charter schools; amending s. 1002.33,
7	F.S.; revising charter school purposes; revising the
8	charter school application process including review,
9	approval or denial, and appeal; modifying duties of
10	sponsors; limiting liability of sponsors; requiring an
11	annual survey of charter school governing boards;
12	requiring the Department of Education to provide technical
13	assistance to charter school applicants; revising
14	provisions relating to a charter agreement, term, and
15	renewal; providing procedures when a state of financial
16	emergency exists; revising causes for nonrenewal or
17	termination of a charter; requiring the department to
18	maintain a database of charter school applicants and
19	contract operators; revising provisions relating to
20	payment and reimbursement to a charter school by a school
21	district; authorizing the State Board of Education to
22	impose a fine on or withhold lottery funds from a school
23	district for certain violations; requiring conversion
24	charter schools to comply with certain facility
25	requirements under specific situations; authorizing
26	certain zoning and land use designations for certain
27	charter school facilities; revising exemption from
28	assessment of fees; providing for additional services to
29	charter schools and revising administrative fee
30	requirements; requiring the department to develop a
31	standard format for applications, charters, and charter
32	renewals; deleting a provision requiring a review of
33	charter schools in 2005 by the Legislature; amending s.
34	218.39, F.S.; requiring that a charter school be notified
35	of certain deteriorating financial conditions; amending s.
36	218.50, F.S.; modifying a short title; amending s.
37	218.501, F.S.; including charter schools in the statement
38	of purpose relating to financial management; amending s.
39	218.503, F.S.; providing for charter schools to be subject
40	to provisions governing financial emergencies; providing
41	procedures; amending s. 218.504, F.S.; providing for
42	cessation of state action related to a state of financial
43	emergency; amending s. 11.45, F.S.; conforming provisions;
44	amending s. 166.271, F.S.; correcting cross references;
45	amending s. 1002.32, F.S.; providing that a charter lab
46	school that elects to provide student transportation is
47	eligible for funding for that purpose; amending s.
48	1003.05, F.S.; modifying the list of special academic
49	programs for transitioning students from military
50	families; amending s. 1012.74, F.S.; providing that
51	educator professional liability insurance shall cover
52	charter school personnel; amending s. 1013.62, F.S.;
53	revising provisions relating to eligibility for and
54	allocation of charter school capital outlay funding;
55	revising purposes for which capital outlay funds may be
56	used; establishing the Charter School Task Force;
57	specifying task force duties and composition; requiring
58	the Department of Education to provide staff support for
59	the task force; providing effective dates.
60
61	Be It Enacted by the Legislature of the State of Florida:
62
63	Section 1.  Section 1002.33, Florida Statutes, is amended
64	to read:
65	1002.33  Charter schools.--
66	(1)  AUTHORIZATION.--Charter schools shall be part of the
67	state's program of public education. All charter schools in
68	Florida are public schools. A charter school may be formed by
69	creating a new school or converting an existing public school to
70	charter status. A public school may not use the term charter in
71	its name unless it has been approved under this section.
72	(2)  GUIDING PRINCIPLES; PURPOSE.--
73	(a)  Charter schools in Florida shall be guided by the
74	following principles:
75	1.  Meet high standards of student achievement while
76	providing parents flexibility to choose among diverse
77	educational opportunities within the state's public school
78	system.
79	2.  Promote enhanced academic success and financial
80	efficiency by aligning responsibility with accountability.
81	3.  Provide parents with sufficient information on whether
82	their child is reading at grade level and whether the child
83	gains at least a year's worth of learning for every year spent
84	in the charter school.
85	(b)  Charter schools shall fulfill one of the following
86	purposes:
87	1.  Improve student learning and academic achievement.
88	2.  Increase learning opportunities for all students, with
89	special emphasis on low-performing students and reading.
90	3.  Create new professional opportunities for teachers,
91	including ownership of the learning program at the school site.
92	4.  Encourage the use of innovative learning methods.
93	5.  Require the measurement of learning outcomes.
94	(c)  Charter schools may fulfill the following purposes:
95	1.  Create innovative measurement tools.
96	2.  Provide rigorous competition within the public school
97	district to stimulate continual improvement in all public
98	schools.
99	3.  Expand the capacity of the public school system.
100	4.  Mitigate the educational impact created by the
101	development of new residential dwelling units.
102	5.  Create new professional opportunities for teachers,
103	including ownership of the learning program at the school site.
104	6.  Encourage the use of innovative learning methods.
105	7.  Require the measurement of learning outcomes.
106	(3)  APPLICATION FOR CHARTER STATUS.--
107	(a)  An application for a new charter school may be made by
108	an individual, teachers, parents, a group of individuals, a
109	municipality, or a legal entity organized under the laws of this
110	state.
111	(b)  An application for a conversion charter school shall
112	be made by the district school board, the principal, teachers,
113	parents, and/or the school advisory council at an existing
114	public school that has been in operation for at least 2 years
115	prior to the application to convert., including A public school-
116	within-a-school that is designated as a school by the district
117	school board may also submit an application to convert to
118	charter status. An application submitted proposing to convert an
119	existing public school to a charter school shall demonstrate the
120	support of at least 50 percent of the teachers employed at the
121	school and 50 percent of the parents voting whose children are
122	enrolled at the school, provided that a majority of the parents
123	eligible to vote participate in the ballot process, according to
124	rules adopted by the State Board of Education. A district school
125	board denying an application for a conversion charter school
126	shall provide notice of denial to the applicants in writing
127	within 10 30 days after the meeting at which the district school
128	board denied the application. The notice must identify specify
129	the specific exact reasons for denial and must provide
130	documentation supporting those reasons. A private school,
131	parochial school, or home education program shall not be
132	eligible for charter school status.
133	(4)  UNLAWFUL REPRISAL.--
134	(a)  No district school board, or district school board
135	employee who has control over personnel actions, shall take
136	unlawful reprisal against another district school board employee
137	because that employee is either directly or indirectly involved
138	with an application to establish a charter school. As used in
139	this subsection, the term "unlawful reprisal" means an action
140	taken by a district school board or a school system employee
141	against an employee who is directly or indirectly involved in a
142	lawful application to establish a charter school, which occurs
143	as a direct result of that involvement, and which results in one
144	or more of the following: disciplinary or corrective action;
145	adverse transfer or reassignment, whether temporary or
146	permanent; suspension, demotion, or dismissal; an unfavorable
147	performance evaluation; a reduction in pay, benefits, or
148	rewards; elimination of the employee's position absent of a
149	reduction in workforce as a result of lack of moneys or work; or
150	other adverse significant changes in duties or responsibilities
151	that are inconsistent with the employee's salary or employment
152	classification. The following procedures shall apply to an
153	alleged unlawful reprisal that occurs as a consequence of an
154	employee's direct or indirect involvement with an application to
155	establish a charter school:
156	1.  Within 60 days after the date upon which a reprisal
157	prohibited by this subsection is alleged to have occurred, an
158	employee may file a complaint with the Department of Education.
159	2.  Within 3 working days after receiving a complaint under
160	this section, the Department of Education shall acknowledge
161	receipt of the complaint and provide copies of the complaint and
162	any other relevant preliminary information available to each of
163	the other parties named in the complaint, which parties shall
164	each acknowledge receipt of such copies to the complainant.
165	3.  If the Department of Education determines that the
166	complaint demonstrates reasonable cause to suspect that an
167	unlawful reprisal has occurred, the Department of Education
168	shall conduct an investigation to produce a fact-finding report.
169	4.  Within 90 days after receiving the complaint, the
170	Department of Education shall provide the district school
171	superintendent of the complainant's district and the complainant
172	with a fact-finding report that may include recommendations to
173	the parties or a proposed resolution of the complaint. The fact-
174	finding report shall be presumed admissible in any subsequent or
175	related administrative or judicial review.
176	5.  If the Department of Education determines that
177	reasonable grounds exist to believe that an unlawful reprisal
178	has occurred, is occurring, or is to be taken, and is unable to
179	conciliate a complaint within 60 days after receipt of the fact-
180	finding report, the Department of Education shall terminate the
181	investigation. Upon termination of any investigation, the
182	Department of Education shall notify the complainant and the
183	district school superintendent of the termination of the
184	investigation, providing a summary of relevant facts found
185	during the investigation and the reasons for terminating the
186	investigation. A written statement under this paragraph is
187	presumed admissible as evidence in any judicial or
188	administrative proceeding.
189	6.  The Department of Education shall either contract with
190	the Division of Administrative Hearings under s. 120.65, or
191	otherwise provide for a complaint for which the Department of
192	Education determines reasonable grounds exist to believe that an
193	unlawful reprisal has occurred, is occurring, or is to be taken,
194	and is unable to conciliate, to be heard by a panel of impartial
195	persons. Upon hearing the complaint, the panel shall make
196	findings of fact and conclusions of law for a final decision by
197	the Department of Education.
198
199	It shall be an affirmative defense to any action brought
200	pursuant to this section that the adverse action was predicated
201	upon grounds other than, and would have been taken absent, the
202	employee's exercise of rights protected by this section.
203	(b)  In any action brought under this section for which it
204	is determined reasonable grounds exist to believe that an
205	unlawful reprisal has occurred, is occurring, or is to be taken,
206	the relief shall include the following:
207	1.  Reinstatement of the employee to the same position held
208	before the unlawful reprisal was commenced, or to an equivalent
209	position, or payment of reasonable front pay as alternative
210	relief.
211	2.  Reinstatement of the employee's full fringe benefits
212	and seniority rights, as appropriate.
213	3.  Compensation, if appropriate, for lost wages, benefits,
214	or other lost remuneration caused by the unlawful reprisal.
215	4.  Payment of reasonable costs, including attorney's fees,
216	to a substantially prevailing employee, or to the prevailing
217	employer if the employee filed a frivolous action in bad faith.
218	5.  Issuance of an injunction, if appropriate, by a court
219	of competent jurisdiction.
220	6.  Temporary reinstatement to the employee's former
221	position or to an equivalent position, pending the final outcome
222	of the complaint, if it is determined that the action was not
223	made in bad faith or for a wrongful purpose, and did not occur
224	after a district school board's initiation of a personnel action
225	against the employee that includes documentation of the
226	employee's violation of a disciplinary standard or performance
227	deficiency.
228	(5)  SPONSOR; DUTIES; LIABILITY; SURVEY.--
229	(a)  Sponsoring entities.--
230	1.  A district school board may sponsor a charter school in
231	the county over which the district school board has
232	jurisdiction.
233	2.  A state university may grant a charter to a lab school
234	created under s. 1002.32 and shall be considered to be the
235	school's sponsor. Such school shall be considered a charter lab
236	school.
237	(b)  Sponsor duties.--
238	1.  The sponsor shall monitor and review the charter school
239	in its progress toward the goals established in the charter.
240	2.  The sponsor shall monitor the revenues and expenditures
241	of the charter school.
242	3.  The sponsor may approve a charter for a charter school
243	before the applicant has secured space, equipment, or personnel,
244	if the applicant indicates approval is necessary for it to raise
245	working funds capital.
246	4.  The sponsor's policies shall not apply to a charter
247	school.
248	5.  The sponsor shall ensure that the charter is innovative
249	and consistent with the state education goals established by s.
250	1000.03(5).
251	6.  The sponsor shall ensure that the charter school
252	participates in the state's education accountability system. If
253	a charter school falls short of performance measures included in
254	the approved charter, the sponsor shall report such shortcomings
255	to the Department of Education.
256	7.  The sponsor shall provide assistance in scheduling fire
257	code inspections upon the request of the charter school.
258	8.  The director and a representative of the governing
259	board of a charter school graded "D" or "F" shall appear before
260	the sponsor at a formal district school board meeting or state
261	university board of trustees meeting at least once a year to
262	present information concerning each contract component having
263	noted deficiencies and to address corrective strategies that are
264	being implemented by the school. The sponsor shall communicate
265	at the meeting, and in writing to the director, the services
266	provided to the school to help the school address its
267	deficiencies.
268
269	A community college may work with the school district or school
270	districts in its designated service area to develop charter
271	schools that offer secondary education. These charter schools
272	must include an option for students to receive an associate
273	degree upon high school graduation. District school boards shall
274	cooperate with and assist the community college on the charter
275	application. Community college applications for charter schools
276	are not subject to the time deadlines outlined in subsection (6)
277	and may be approved by the district school board at any time
278	during the year. Community colleges shall not report FTE for any
279	students who receive FTE funding through the Florida Education
280	Finance Program.
281	(c)  Sponsor liability.--A district school board sponsoring
282	a charter school shall not be liable for damages resulting from
283	the acts or omissions of the charter school's governing board,
284	agents, or employees unless such act or omission was based upon
285	requirements or policies of the district school board.
286	(d)  Annual survey.--The department shall conduct an annual
287	survey of charter school governing boards to determine the
288	boards' satisfaction with the services received from their
289	sponsors and the Department of Education. The survey results
290	shall be reported to the State Board of Education which may
291	recommend action for sponsors having an inordinate number of
292	complaints or sponsors that have been determined not to have
293	fulfilled their responsibilities as described in this section.
294	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
295	Beginning September 1, 2003, applications are subject to the
296	following requirements:
297	(a)  A person or entity wishing to open a charter school
298	shall prepare an application that:
299	1.  Demonstrates how the school will use the guiding
300	principles and meet the statutorily defined purpose of a charter
301	school.
302	2.  Provides a detailed curriculum plan that illustrates
303	how students will be provided services to attain the Sunshine
304	State Standards.
305	3.  Contains goals and objectives for improving student
306	learning and measuring that improvement. These goals and
307	objectives must indicate how much academic improvement students
308	are expected to show each year, how success will be evaluated,
309	and the specific results to be attained through instruction.
310	4.  Describes the reading curriculum and differentiated
311	strategies that will be used for students reading at grade level
312	or higher and a separate curriculum and strategies for students
313	who are reading below grade level. A sponsor shall deny a
314	charter if the school does not propose a reading curriculum that
315	is consistent with effective teaching strategies that are
316	grounded in scientifically based reading research.
317	5.  Contains an annual financial plan for each year
318	requested by the charter for operation of the school for up to 5
319	years. This plan must contain anticipated fund balances based on
320	revenue projections, a spending plan based on projected revenues
321	and expenses, and a description of controls that will safeguard
322	finances and projected enrollment trends.
323	(b)  A district school board shall receive and review all
324	applications for a charter school. Beginning with the 2005-2006
325	school year, a district school board shall receive and consider
326	charter school applications received on or before August
327	September 1 of each calendar year for charter schools to be
328	opened at the beginning of the school district's next school
329	year, or to be opened at a time agreed to by the applicant and
330	the district school board. A district school board may receive
331	applications later than this date if it chooses. A sponsor may
332	not charge an applicant for a charter any fee for the processing
333	or consideration of an application, and a sponsor may not base
334	its consideration or approval of an application upon the promise
335	of future payment of any kind.
336	1.  In order to facilitate an accurate budget projection
337	process, a district school board shall be held harmless for FTE
338	students who are not included in the FTE projection due to
339	approval of charter school applications after the FTE projection
340	deadline. In a further effort to facilitate an accurate budget
341	projection, within 15 calendar days after receipt of a charter
342	school application, a district school board or other sponsor
343	shall report to the Department of Education the name of the
344	applicant entity, the proposed charter school location, and its
345	projected FTE.
346	2.  In order to ensure fiscal responsibility, an
347	application for a charter school shall include a full accounting
348	of expected assets, a projection of expected sources and amounts
349	of income, including income derived from projected student
350	enrollments and from community support, and an expense
351	projection that includes full accounting of the costs of
352	operation, including start-up costs.
353	3.  A district school board shall by a majority vote
354	approve or deny an application no later than 60 calendar days
355	after the application is received, unless the district school
356	board and the applicant mutually agree in writing to temporarily
357	postpone the vote to a specific date, at which time the district
358	school board shall by a majority vote approve or deny the
359	application. If the district school board fails to act on the
360	application, an applicant may appeal to the State Board of
361	Education as provided in paragraph (c). If an application is
362	denied, the district school board shall, within 10 calendar
363	days, articulate in writing the specific reasons for based upon
364	good cause supporting its denial of the charter application and
365	must provide documentation to the applicant and to the
366	Department of Education supporting those reasons.
367	4.  For budget projection purposes, the district school
368	board or other sponsor shall report to the Department of
369	Education the approval or denial of a charter application within
370	10 calendar days after such approval or denial. In the event of
371	approval, the report to the Department of Education shall
372	include the final projected FTE for the approved charter school.
373	5.  Upon approval of a charter application, the initial
374	startup shall commence with the beginning of the public school
375	calendar for the district in which the charter is granted unless
376	the district school board allows a waiver of this provision for
377	good cause.
378	(c)  An applicant may appeal any denial of that applicant's
379	application or failure to act on an application to the State
380	Board of Education no later than 30 calendar days after receipt
381	of the district school board's decision or failure to act and
382	shall notify the district school board of its appeal. Any
383	response of the district school board shall be submitted to the
384	State Board of Education within 30 calendar days after
385	notification of the appeal. Upon receipt of notification from
386	the State Board of Education that a charter school applicant is
387	filing an appeal, the Commissioner of Education shall convene a
388	meeting of the Charter School Appeal Commission to study and
389	make recommendations to the State Board of Education regarding
390	its pending decision about the appeal. The commission shall
391	forward its recommendation to the state board no later than 7
392	calendar days prior to the date on which the appeal is to be
393	heard. The State Board of Education shall by majority vote
394	accept or reject the decision of the district school board no
395	later than 90 calendar days after an appeal is filed in
396	accordance with State Board of Education rule. The Charter
397	School Appeal Commission may reject an appeal submission for
398	failure to comply with procedural rules governing the appeals
399	process. The rejection shall describe the submission errors. The
400	appellant may have up to 15 calendar days from notice of
401	rejection to resubmit an appeal that meets requirements of State
402	Board of Education rule. An application for appeal submitted
403	subsequent to such rejection shall be considered timely if the
404	original appeal was filed within 30 calendar days after receipt
405	of notice of the specific reasons for the district school
406	board's denial of the charter application. The State Board of
407	Education shall remand the application to the district school
408	board with its written decision that the district school board
409	approve or deny the application. The district school board shall
410	implement the decision of the State Board of Education. The
411	decision of the State Board of Education is not subject to the
412	provisions of the Administrative Procedure Act, chapter 120.
413	(d)  The district school board shall act upon the decision
414	of the State Board of Education within 30 calendar days after it
415	is received. The State Board of Education's decision is a final
416	action subject to judicial review.
417	(e)1.  A Charter School Appeal Commission is established to
418	assist the commissioner and the State Board of Education with a
419	fair and impartial review of appeals by applicants whose charter
420	applications have been denied, whose charter contracts have not
421	been renewed, or whose charter contracts have been terminated by
422	their sponsors, or whose disputes over contract negotiations
423	have not been resolved through mediation.
424	2.  The Charter School Appeal Commission may receive copies
425	of the appeal documents forwarded to the State Board of
426	Education, review the documents, gather other applicable
427	information regarding the appeal, and make a written
428	recommendation to the commissioner. The recommendation must
429	state whether the appeal should be upheld or denied and include
430	the reasons for the recommendation being offered. The
431	commissioner shall forward the recommendation to the State Board
432	of Education no later than 7 calendar days prior to the date on
433	which the appeal is to be heard. The state board must consider
434	the commission's recommendation in making its decision, but is
435	not bound by the recommendation. The decision of the Charter
436	School Appeal Commission is not subject to the provisions of the
437	Administrative Procedure Act, chapter 120.
438	3.  The commissioner shall appoint the members of the
439	Charter School Appeal Commission. Members shall serve without
440	compensation but may be reimbursed for travel and per diem
441	expenses in conjunction with their service. One-half of the
442	members must represent currently operating charter schools, and
443	one-half of the members must represent school districts. The
444	commissioner or a named designee shall chair the Charter School
445	Appeal Commission.
446	4.  The chair shall convene meetings of the commission and
447	shall ensure that the written recommendations are completed and
448	forwarded in a timely manner. In cases where the commission
449	cannot reach a decision, the chair shall make the written
450	recommendation with justification, noting that the decision was
451	rendered by the chair.
452	5.  Commission members shall thoroughly review the
453	materials presented to them from the appellant and the sponsor.
454	The commission may request information to clarify the
455	documentation presented to it. In the course of its review, the
456	commission may facilitate the postponement of an appeal in those
457	cases where additional time and communication may negate the
458	need for a formal appeal and both parties agree, in writing, to
459	postpone the appeal to the State Board of Education. A new date
460	certain for the appeal shall then be set based upon the rules
461	and procedures of the State Board of Education. Commission
462	members shall provide a written recommendation to the state
463	board as to whether the appeal should be upheld or denied. A
464	fact-based justification for the recommendation must be
465	included. The chair must ensure that the written recommendation
466	is submitted to the State Board of Education members no later
467	than 7 calendar days prior to the date on which the appeal is to
468	be heard. Both parties in the case shall also be provided a copy
469	of the recommendation.
470	(f)  The Department of Education must offer or arrange for
471	training and technical assistance to charter school applicants
472	in developing business plans and estimating costs and income.
473	This assistance must address estimating startup costs,
474	projecting enrollment, and identifying the types and amounts of
475	state and federal financial assistance the charter school will
476	be eligible to receive. The department of Education may provide
477	other technical assistance to an applicant upon written request.
478	(g)  In considering charter applications for a lab school,
479	a state university shall consult with the district school board
480	of the county in which the lab school is located. The decision
481	of a state university may be appealed pursuant to the procedure
482	established in this subsection.
483	(h)  The terms and conditions for the operation of a
484	charter school shall be set forth by the sponsor and the
485	applicant in a written contractual agreement, called a charter.
486	The sponsor shall not impose unreasonable rules or regulations
487	that violate the intent of giving charter schools greater
488	flexibility to meet educational goals. The applicant and sponsor
489	shall have 3 6 months in which to mutually agree to the
490	provisions of the charter. The proposed charter must be provided
491	to the charter school at least 7 calendar days prior to the date
492	on which the charter is scheduled to be heard by the sponsor.
493	The Department of Education shall provide mediation services for
494	any dispute regarding this section subsequent to the approval of
495	a charter application and for any dispute relating to the
496	approved charter, except disputes regarding charter school
497	application denials. If the Commissioner of Education determines
498	that the dispute cannot be settled through mediation, the
499	dispute may be appealed to an administrative law judge appointed
500	by the Division of Administrative Hearings. The administrative
501	law judge may rule on issues of equitable treatment of the
502	charter school as a public school, whether proposed provisions
503	of the charter violate the intended flexibility granted charter
504	schools by statute, or on any other matter regarding this
505	section except a charter school application denial, a charter
506	termination, or a charter nonrenewal and shall award the
507	prevailing party reasonable attorney's fees and costs incurred
508	to be paid by the losing party. The costs of the administrative
509	hearing shall be paid by the party whom the administrative law
510	judge rules against.
511	(7)  CHARTER.--The major issues involving the operation of
512	a charter school shall be considered in advance and written into
513	the charter. The charter shall be signed by the governing body
514	of the charter school and the sponsor, following a public
515	hearing to ensure community input.
516	(a)  The charter shall address, and criteria for approval
517	of the charter shall be based on:
518	1.  The school's mission, the students to be served, and
519	the ages and grades to be included.
520	2.  The focus of the curriculum, the instructional methods
521	to be used, any distinctive instructional techniques to be
522	employed, and identification and acquisition of appropriate
523	technologies needed to improve educational and administrative
524	performance which include a means for promoting safe, ethical,
525	and appropriate uses of technology which comply with legal and
526	professional standards. The charter shall ensure that reading is
527	a primary focus of the curriculum and that resources are
528	provided to identify and provide specialized instruction for
529	students who are reading below grade level. The curriculum and
530	instructional strategies for reading must be consistent with the
531	Sunshine State Standards and grounded in scientifically based
532	reading research.
533	3.  The current incoming baseline standard of student
534	academic achievement, the outcomes to be achieved, and the
535	method of measurement that will be used. The criteria listed in
536	this subparagraph shall include a detailed description for each
537	of the following:
538	a.  How the baseline student academic achievement levels
539	and prior rates of academic progress will be established.
540	b.  How these baseline rates will be compared to rates of
541	academic progress achieved by these same students while
542	attending the charter school.
543	c.  To the extent possible, how these rates of progress
544	will be evaluated and compared with rates of progress of other
545	closely comparable student populations.
546
547	The district school board is required to provide academic
548	student performance data to charter schools for each of their
549	students coming from the district school system, as well as
550	rates of academic progress of comparable student populations in
551	the district school system.
552	4.  The methods used to identify the educational strengths
553	and needs of students and how well educational goals and
554	performance standards are met by students attending the charter
555	school. Included in the methods is a means for the charter
556	school to ensure accountability to its constituents by analyzing
557	student performance data and by evaluating the effectiveness and
558	efficiency of its major educational programs. Students in
559	charter schools shall, at a minimum, participate in the
560	statewide assessment program created under s. 1008.22.
561	5.  In secondary charter schools, a method for determining
562	that a student has satisfied the requirements for graduation in
563	s. 1003.43.
564	6.  A method for resolving conflicts between the governing
565	body of the charter school and the sponsor.
566	7.  The admissions procedures and dismissal procedures,
567	including the school's code of student conduct.
568	8.  The ways by which the school will achieve a
569	racial/ethnic balance reflective of the community it serves or
570	within the racial/ethnic range of other public schools in the
571	same school district.
572	9.  The financial and administrative management of the
573	school, including a reasonable demonstration of the professional
574	experience or competence of those individuals or organizations
575	applying to operate the charter school or those hired or
576	retained to perform such professional services and the
577	description of clearly delineated responsibilities and the
578	policies and practices needed to effectively manage the charter
579	school. A description of internal audit procedures and
580	establishment of controls to ensure that financial resources are
581	properly managed must be included. Both public sector and
582	private sector professional experience shall be equally valid in
583	such a consideration.
584	10.  The asset and liability projections required in the
585	application which are incorporated into the charter and which
586	shall be compared with information provided in the annual report
587	of the charter school. The charter shall ensure that, if a
588	charter school internal audit or annual financial audit reveals
589	a state of financial emergency as defined in s. 218.503 or
590	deficit financial position, the auditors are required to notify
591	the charter school governing board, the sponsor, and the
592	Department of Education. The internal auditor shall report such
593	findings in the form of an exit interview to the principal or
594	the principal administrator of the charter school and the chair
595	of the governing board within 7 working days after finding the
596	state of financial emergency or deficit position. A final report
597	shall be provided to the entire governing board, the sponsor,
598	and the Department of Education within 14 working days after the
599	exit interview. When a charter school is in a state of financial
600	emergency, the charter school shall file a detailed financial
601	recovery plan with the sponsor. The department shall establish
602	guidelines, with involvement from both school districts and
603	charter schools, for developing such plans.
604	11.  A description of procedures that identify various
605	risks and provide for a comprehensive approach to reduce the
606	impact of losses; plans to ensure the safety and security of
607	students and staff; plans to identify, minimize, and protect
608	others from violent or disruptive student behavior; and the
609	manner in which the school will be insured, including whether or
610	not the school will be required to have liability insurance,
611	and, if so, the terms and conditions thereof and the amounts of
612	coverage.
613	12.  The term of the charter which shall provide for
614	cancellation of the charter if insufficient progress has been
615	made in attaining the student achievement objectives of the
616	charter and if it is not likely that such objectives can be
617	achieved before expiration of the charter. The initial term of a
618	charter shall be for 3, 4, or 5 years. In order to facilitate
619	access to long-term financial resources for charter school
620	construction, charter schools that are operated by a
621	municipality or other public entity as provided by law are
622	eligible for up to a 15-year charter, subject to approval by the
623	district school board. A charter lab school is eligible for a
624	charter for a term of up to 15 years. In addition, to facilitate
625	access to long-term financial resources for charter school
626	construction, charter schools that are operated by a private,
627	not-for-profit, s. 501(c)(3) status corporation are eligible for
628	up to a 15-year 10-year charter, subject to approval by the
629	district school board. Such long-term charters remain subject to
630	annual review and may be terminated during the term of the
631	charter, but only for specific good cause according to the
632	provisions set forth in subsection (8).
633	13.  The facilities to be used and their location.
634	14.  The qualifications to be required of the teachers and
635	the potential strategies used to recruit, hire, train, and
636	retain qualified staff to achieve best value.
637	15.  The governance structure of the school, including the
638	status of the charter school as a public or private employer as
639	required in paragraph (12)(i).
640	16.  A timetable for implementing the charter which
641	addresses the implementation of each element thereof and the
642	date by which the charter shall be awarded in order to meet this
643	timetable.
644	17.  In the case of an existing public school being
645	converted to charter status, alternative arrangements for
646	current students who choose not to attend the charter school and
647	for current teachers who choose not to teach in the charter
648	school after conversion in accordance with the existing
649	collective bargaining agreement or district school board rule in
650	the absence of a collective bargaining agreement. However,
651	alternative arrangements shall not be required for current
652	teachers who choose not to teach in a charter lab school, except
653	as authorized by the employment policies of the state university
654	which grants the charter to the lab school.
655	(b)1.  A charter may be renewed every 5 school years,
656	provided that a program review demonstrates that the criteria in
657	paragraph (a) have been successfully accomplished and that none
658	of the grounds for nonrenewal established by paragraph (8)(a)
659	has been documented. In order to facilitate long-term financing
660	for charter school construction, charter schools operating for a
661	minimum of 2 years and demonstrating exemplary academic
662	programming and fiscal management are eligible for a 15-year
663	charter renewal. Such long-term charter is subject to annual
664	review and may be terminated during the term of the charter.
665	2.  The 15-year charter renewal that may be granted
666	pursuant to subparagraph 1. shall be granted to a charter school
667	that has received a school grade of "A" or "B" pursuant to s.
668	1008.34 in 3 of the past 4 years and is not in a state of
669	financial emergency or deficit position as defined by this
670	section. Such long-term charter is subject to annual review and
671	may be terminated during the term of the charter pursuant to
672	subsection (8).
673	(c)  A charter may be modified during its initial term or
674	any renewal term upon the recommendation of the sponsor or the
675	charter school governing board and the approval of both parties
676	to the agreement.
677	(8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
678	(a)  At the end of the term of a charter, the sponsor may
679	choose not to renew the charter for any of the following
680	grounds:
681	1.  Failure to participate in the state's education
682	accountability system created in s. 1008.31, as required in this
683	section, or failure to meet the requirements for student
684	performance stated in the charter.
685	2.  Failure to meet generally accepted standards of fiscal
686	management.
687	3.  Violation of law.
688	4.  Determination by the sponsor that the health, safety,
689	or welfare of the students is threatened Other good cause shown.
690	5.  Failure of the director of a charter school having a
691	school performance grade of a "D" or "F" to appear before the
692	sponsoring body as required in subsection (5).
693	(b)  During the term of a charter, the sponsor may
694	terminate the charter for any of the grounds listed in paragraph
695	(a).
696	(c)  At least 90 days prior to renewing or terminating a
697	charter, the sponsor shall notify the governing body of the
698	school of the proposed action in writing. The notice shall state
699	in reasonable detail the grounds for the proposed action and
700	stipulate that the school's governing body may, within 14
701	calendar days after receiving the notice, request an informal
702	hearing before the sponsor. The sponsor shall conduct the
703	informal hearing within 30 calendar days after receiving a
704	written request. The charter school's governing body may, within
705	14 calendar days after receiving the sponsor's decision to
706	terminate or refuse to renew the charter, appeal the decision
707	pursuant to the procedure established in subsection (6).
708	(d)  A charter may be terminated immediately if the sponsor
709	determines that good cause has been shown or if the health,
710	safety, or welfare of the students is threatened. The charter
711	sponsor must notify in writing the charter school's governing
712	board, the charter school principal, and the department if a
713	charter is immediately terminated. The sponsor shall clearly
714	identify the specific issues that resulted in the immediate
715	termination and provide evidence of prior notification of issues
716	resulting in the immediate termination when appropriate. The
717	school district in which the charter school is located shall
718	assume operation of the school under these circumstances. The
719	charter school's governing board may, within 14 days after
720	receiving the sponsor's decision to terminate the charter,
721	appeal the decision pursuant to the procedure established in
722	subsection (6).
723	(e)  When a charter is not renewed or is terminated, the
724	school shall be dissolved under the provisions of law under
725	which the school was organized, and any unencumbered public
726	funds, except for capital outlay funds, from the charter school
727	shall revert to the district school board. Capital outlay funds
728	provided pursuant to s. 1013.62 that are unencumbered shall
729	revert to the department to be redistributed among eligible
730	charter schools. In the event a charter school is dissolved or
731	is otherwise terminated, all district school board property and
732	improvements, furnishings, and equipment purchased with public
733	funds shall automatically revert to full ownership by the
734	district school board, subject to complete satisfaction of any
735	lawful liens or encumbrances. Any unencumbered public funds from
736	the charter school, district school board property and
737	improvements, furnishings, and equipment purchased with public
738	funds, or financial or other records pertaining to the charter
739	school, in the possession of any person, entity, or holding
740	company, other than the charter school, shall be held in trust
741	upon the district school board's request, until any appeal
742	status is resolved.
743	(f)  If a charter is not renewed or is terminated, the
744	charter school is responsible for all debts of the charter
745	school. The district may not assume the debt from any contract
746	for services made between the governing body of the school and a
747	third party, except for a debt that is previously detailed and
748	agreed upon in writing by both the district and the governing
749	body of the school and that may not reasonably be assumed to
750	have been satisfied by the district.
751	(g)  If a charter is not renewed or is terminated, a
752	student who attended the school may apply to, and shall be
753	enrolled in, another public school. Normal application deadlines
754	shall be disregarded under such circumstances.
755	(9)  CHARTER SCHOOL REQUIREMENTS.--
756	(a)  A charter school shall be nonsectarian in its
757	programs, admission policies, employment practices, and
758	operations.
759	(b)  A charter school shall admit students as provided in
760	subsection (10).
761	(c)  A charter school shall be accountable to its sponsor
762	for performance as provided in subsection (7).
763	(d)  A charter school shall not charge tuition or
764	registration fees, except those fees normally charged by other
765	public schools. However, a charter lab school may charge a
766	student activity and service fee as authorized by s. 1002.32(5).
767	(e)  A charter school shall meet all applicable state and
768	local health, safety, and civil rights requirements.
769	(f)  A charter school shall not violate the
770	antidiscrimination provisions of s. 1000.05.
771	(g)  A charter school shall provide for an annual financial
772	audit in accordance with s. 218.39. Financial audits that yield
773	a state of financial emergency as defined in s. 218.503 and are
774	conducted by a certified public accountant or auditor in
775	accordance with s. 218.39 shall be provided to the governing
776	board of the charter school within 7 working days after finding
777	that a state of financial emergency exists. When a charter
778	school is found to be in a state of financial emergency by a
779	certified public accountant or auditor, the charter school must
780	file a detailed financial recovery plan with the sponsor within
781	30 days after receipt of the audit.
782	(h)  No organization shall hold more than 15 charters
783	statewide.
784	(i)  Upon receipt of an application to operate a charter
785	school, the sponsor must notify the Department of Education of
786	the individual, group, organization, or private or nonprofit
787	company that submitted an application to operate a charter
788	school in this state or that is contracted with by the governing
789	board of a charter school to operate a charter school in this
790	state. The department shall maintain a database that contains
791	the name of each organization or entity applying for a charter
792	or operating by contract a charter school in this state,
793	principal contact information, a description of the organization
794	or entity, an identification of the number of charter
795	applications or contracts in the state, and disclosure of
796	charters terminated or renewed in this state and other states. A
797	sponsor may not approve an application for a charter unless the
798	governing board and contract operator of the school have
799	submitted a complete, accurate, and timely registration with the
800	department.
801	(j)(i)  In order to provide financial information that is
802	comparable to that reported for other public schools, charter
803	schools are to maintain all financial records which constitute
804	their accounting system:
805	1.  In accordance with the accounts and codes prescribed in
806	the most recent issuance of the publication titled "Financial
807	and Program Cost Accounting and Reporting for Florida Schools";
808	or
809	2.  At the discretion of the charter school governing
810	board, a charter school may elect to follow generally accepted
811	accounting standards for not-for-profit organizations, but must
812	reformat this information for reporting according to this
813	paragraph.
814
815	Charter schools are to provide annual financial report and
816	program cost report information in the state-required formats
817	for inclusion in district reporting in compliance with s.
818	1011.60(1). Charter schools that are operated by a municipality
819	or are a component unit of a parent nonprofit organization may
820	use the accounting system of the municipality or the parent but
821	must reformat this information for reporting according to this
822	paragraph.
823	(k)(j)  The governing board of the charter school shall
824	annually adopt and maintain an operating budget.
825	(l)(k)  The governing body of the charter school shall
826	exercise continuing oversight over charter school operations.
827	(m)(l)  The governing body of the charter school shall
828	report its progress annually to its sponsor, which shall forward
829	the report to the Commissioner of Education at the same time as
830	other annual school accountability reports. The Department of
831	Education shall include in its compilation a notation if a
832	school failed to file its report by the deadline established by
833	the department. The report shall include at least the following
834	components:
835	1.  Student achievement performance data, including the
836	information required for the annual school report and the
837	education accountability system governed by ss. 1008.31 and
838	1008.345. Charter schools are subject to the same accountability
839	requirements as other public schools, including reports of
840	student achievement information that links baseline student data
841	to the school's performance projections identified in the
842	charter. The charter school shall identify reasons for any
843	difference between projected and actual student performance.
844	2.  Financial status of the charter school which must
845	include revenues and expenditures at a level of detail that
846	allows for analysis of the ability to meet financial obligations
847	and timely repayment of debt.
848	3.  Documentation of the facilities in current use and any
849	planned facilities for use by the charter school for instruction
850	of students, administrative functions, or investment purposes.
851	4.  Descriptive information about the charter school's
852	personnel, including salary and benefit levels of charter school
853	employees, the proportion of instructional personnel who hold
854	professional or temporary certificates, and the proportion of
855	instructional personnel teaching in-field or out-of-field.
856	(n)(m)  A charter school shall not levy taxes or issue
857	bonds secured by tax revenues.
858	(o)(n)  A charter school shall provide instruction for at
859	least the number of days required by law for other public
860	schools, and may provide instruction for additional days.
861	(10)  ELIGIBLE STUDENTS.--
862	(a)  A charter school shall be open to any student covered
863	in an interdistrict agreement or residing in the school district
864	in which the charter school is located; however, in the case of
865	a charter lab school, the charter lab school shall be open to
866	any student eligible to attend the lab school as provided in s.
867	1002.32 or who resides in the school district in which the
868	charter lab school is located. Any eligible student shall be
869	allowed interdistrict transfer to attend a charter school when
870	based on good cause.
871	(b)  The charter school shall enroll an eligible student
872	who submits a timely application, unless the number of
873	applications exceeds the capacity of a program, class, grade
874	level, or building. In such case, all applicants shall have an
875	equal chance of being admitted through a random selection
876	process.
877	(c)  When a public school converts to charter status,
878	enrollment preference shall be given to students who would have
879	otherwise attended that public school.
880	(d)  A charter school may give enrollment preference to the
881	following student populations:
882	1.  Students who are siblings of a student enrolled in the
883	charter school.
884	2.  Students who are the children of a member of the
885	governing board of the charter school.
886	3.  Students who are the children of an employee of the
887	charter school.
888	(e)  A charter school may limit the enrollment process only
889	to target the following student populations:
890	1.  Students within specific age groups or grade levels.
891	2.  Students considered at risk of dropping out of school
892	or academic failure. Such students shall include exceptional
893	education students.
894	3.  Students enrolling in a charter school-in-the-workplace
895	or charter school-in-a-municipality established pursuant to
896	subsection (15).
897	4.  Students residing within a reasonable distance of the
898	charter school, as described in paragraph (20)(c). Such students
899	shall be subject to a random lottery and to the racial/ethnic
900	balance provisions described in subparagraph (7)(a)8. or any
901	federal provisions that require a school to achieve a
902	racial/ethnic balance reflective of the community it serves or
903	within the racial/ethnic range of other public schools in the
904	same school district.
905	5.  Students who meet reasonable academic, artistic, or
906	other eligibility standards established by the charter school
907	and included in the charter school application and charter or,
908	in the case of existing charter schools, standards that are
909	consistent with the school's mission and purpose. Such standards
910	shall be in accordance with current state law and practice in
911	public schools and may not discriminate against otherwise
912	qualified individuals.
913	6.  Students articulating from one charter school to
914	another pursuant to an articulation agreement between the
915	charter schools that has been approved by the sponsor.
916	(f)  Students with handicapping conditions and students
917	served in English for Speakers of Other Languages programs shall
918	have an equal opportunity of being selected for enrollment in a
919	charter school.
920	(g)  A student may withdraw from a charter school at any
921	time and enroll in another public school as determined by
922	district school board rule.
923	(h)  The capacity of the charter school shall be determined
924	annually by the governing board, in conjunction with the
925	sponsor, of the charter school in consideration of the factors
926	identified in this subsection.
927	(11)  PARTICIPATION IN INTERSCHOLASTIC EXTRACURRICULAR
928	ACTIVITIES.--A charter school student is eligible to participate
929	in an interscholastic extracurricular activity at the public
930	school to which the student would be otherwise assigned to
931	attend pursuant to s. 1006.15(3)(d).
932	(12)  EMPLOYEES OF CHARTER SCHOOLS.--
933	(a)  A charter school shall select its own employees. A
934	charter school may contract with its sponsor for the services of
935	personnel employed by the sponsor.
936	(b)  Charter school employees shall have the option to
937	bargain collectively. Employees may collectively bargain as a
938	separate unit or as part of the existing district collective
939	bargaining unit as determined by the structure of the charter
940	school.
941	(c)  The employees of a conversion charter school shall
942	remain public employees for all purposes, unless such employees
943	choose not to do so.
944	(d)  The teachers at a charter school may choose to be part
945	of a professional group that subcontracts with the charter
946	school to operate the instructional program under the auspices
947	of a partnership or cooperative that they collectively own.
948	Under this arrangement, the teachers would not be public
949	employees.
950	(e)  Employees of a school district may take leave to
951	accept employment in a charter school upon the approval of the
952	district school board. While employed by the charter school and
953	on leave that is approved by the district school board, the
954	employee may retain seniority accrued in that school district
955	and may continue to be covered by the benefit programs of that
956	school district, if the charter school and the district school
957	board agree to this arrangement and its financing. School
958	districts shall not require resignations of teachers desiring to
959	teach in a charter school. This paragraph shall not prohibit a
960	district school board from approving alternative leave
961	arrangements consistent with chapter 1012.
962	(f)  Teachers employed by or under contract to a charter
963	school shall be certified as required by chapter 1012. A charter
964	school governing board may employ or contract with skilled
965	selected noncertified personnel to provide instructional
966	services or to assist instructional staff members as education
967	paraprofessionals in the same manner as defined in chapter 1012,
968	and as provided by State Board of Education rule for charter
969	school governing boards. A charter school may not knowingly
970	employ an individual to provide instructional services or to
971	serve as an education paraprofessional if the individual's
972	certification or licensure as an educator is suspended or
973	revoked by this or any other state. A charter school may not
974	knowingly employ an individual who has resigned from a school
975	district in lieu of disciplinary action with respect to child
976	welfare or safety, or who has been dismissed for just cause by
977	any school district with respect to child welfare or safety. The
978	qualifications of teachers shall be disclosed to parents.
979	(g)  A charter school shall employ or contract with
980	employees who have undergone background screening as provided in
981	s. 1012.32. Members of the governing board of the charter school
982	shall also undergo background screening in a manner similar to
983	that provided in s. 1012.32.
984	(h)  For the purposes of tort liability, the governing body
985	and employees of a charter school shall be governed by s.
986	768.28.
987	(i)  A charter school shall organize as, or be operated by,
988	a nonprofit organization. A charter school may be operated by a
989	municipality or other public entity as provided for by law. As
990	such, the charter school may be either a private or a public
991	employer. As a public employer, a charter school may participate
992	in the Florida Retirement System upon application and approval
993	as a "covered group" under s. 121.021(34). If a charter school
994	participates in the Florida Retirement System, the charter
995	school employees shall be compulsory members of the Florida
996	Retirement System. As either a private or a public employer, a
997	charter school may contract for services with an individual or
998	group of individuals who are organized as a partnership or a
999	cooperative. Individuals or groups of individuals who contract
1000	their services to the charter school are not public employees.
1001	(13)  CHARTER SCHOOL COOPERATIVES.--Charter schools may
1002	enter into cooperative agreements to form charter school
1003	cooperative organizations that may provide the following
1004	services: charter school planning and development, direct
1005	instructional services, and contracts with charter school
1006	governing boards to provide personnel administrative services,
1007	payroll services, human resource management, evaluation and
1008	assessment services, teacher preparation, and professional
1009	development.
1010	(14)  CHARTER SCHOOL FINANCIAL ARRANGEMENTS;
1011	INDEMNIFICATION OF THE STATE AND SCHOOL DISTRICT; CREDIT OR
1012	TAXING POWER NOT TO BE PLEDGED.--Any arrangement entered into to
1013	borrow or otherwise secure funds for a charter school authorized
1014	in this section from a source other than the state or a school
1015	district shall indemnify the state and the school district from
1016	any and all liability, including, but not limited to, financial
1017	responsibility for the payment of the principal or interest. Any
1018	loans, bonds, or other financial agreements are not obligations
1019	of the state or the school district but are obligations of the
1020	charter school authority and are payable solely from the sources
1021	of funds pledged by such agreement. The credit or taxing power
1022	of the state or the school district shall not be pledged and no
1023	debts shall be payable out of any moneys except those of the
1024	legal entity in possession of a valid charter approved by a
1025	district school board pursuant to this section.
1026	(15)  CHARTER SCHOOLS-IN-THE-WORKPLACE; CHARTER SCHOOLS-IN-
1027	A-MUNICIPALITY.--
1028	(a)  In order to increase business partnerships in
1029	education, to reduce school and classroom overcrowding
1030	throughout the state, and to offset the high costs for
1031	educational facilities construction, the Legislature intends to
1032	encourage the formation of business partnership schools or
1033	satellite learning centers and municipal-operated schools
1034	through charter school status.
1035	(b)  A charter school-in-the-workplace may be established
1036	when a business partner provides the school facility to be used;
1037	enrolls students based upon a random lottery that involves all
1038	of the children of employees of that business or corporation who
1039	are seeking enrollment, as provided for in subsection (10); and
1040	enrolls students according to the racial/ethnic balance
1041	provisions described in subparagraph (7)(a)8. Any portion of a
1042	facility used for a public charter school shall be exempt from
1043	ad valorem taxes, as provided for in s. 1013.54, for the
1044	duration of its use as a public school.
1045	(c)  A charter school-in-a-municipality designation may be
1046	granted to a municipality that possesses a charter; enrolls
1047	students based upon a random lottery that involves all of the
1048	children of the residents of that municipality who are seeking
1049	enrollment, as provided for in subsection (10); and enrolls
1050	students according to the racial/ethnic balance provisions
1051	described in subparagraph (7)(a)8. When a municipality has
1052	submitted charter applications for the establishment of a
1053	charter school feeder pattern, consisting of elementary, middle,
1054	and senior high schools, and each individual charter application
1055	is approved by the district school board, such schools shall
1056	then be designated as one charter school for all purposes listed
1057	pursuant to this section. Any portion of the land and facility
1058	used for a public charter school shall be exempt from ad valorem
1059	taxes, as provided for in s. 1013.54, for the duration of its
1060	use as a public school.
1061	(d)  As used in this subsection, the terms "business
1062	partner" or "municipality" may include more than one business or
1063	municipality to form a charter school-in-the-workplace or
1064	charter school-in-a-municipality.
1065	(16)  EXEMPTION FROM STATUTES.--
1066	(a)  A charter school shall operate in accordance with its
1067	charter and shall be exempt from all statutes in chapters 1000-
1068	1013. However, a charter school shall be in compliance with the
1069	following statutes in chapters 1000-1013:
1070	1.  Those statutes specifically applying to charter
1071	schools, including this section.
1072	2.  Those statutes pertaining to the student assessment
1073	program and school grading system.
1074	3.  Those statutes pertaining to the provision of services
1075	to students with disabilities.
1076	4.  Those statutes pertaining to civil rights, including s.
1077	1000.05, relating to discrimination.
1078	5.  Those statutes pertaining to student health, safety,
1079	and welfare.
1080	(b)  Additionally, a charter school shall be in compliance
1081	with the following statutes:
1082	1.  Section 286.011, relating to public meetings and
1083	records, public inspection, and criminal and civil penalties.
1084	2.  Chapter 119, relating to public records.
1085	(17)  FUNDING.--Students enrolled in a charter school,
1086	regardless of the sponsorship, shall be funded as if they are in
1087	a basic program or a special program, the same as students
1088	enrolled in other public schools in the school district. Funding
1089	for a charter lab school shall be as provided in s. 1002.32.
1090	(a)  Each charter school shall report its student
1091	enrollment to the district school board as required in s.
1092	1011.62, and in accordance with the definitions in s. 1011.61.
1093	The district school board shall include each charter school's
1094	enrollment in the district's report of student enrollment. All
1095	charter schools submitting student record information required
1096	by the Department of Education shall comply with the Department
1097	of Education's guidelines for electronic data formats for such
1098	data, and all districts shall accept electronic data that
1099	complies with the Department of Education's electronic format.
1100	(b)  The basis for the agreement for funding students
1101	enrolled in a charter school shall be the sum of the school
1102	district's operating funds from the Florida Education Finance
1103	Program as provided in s. 1011.62 and the General Appropriations
1104	Act, including gross state and local funds, discretionary
1105	lottery funds, and funds from the school district's current
1106	operating discretionary millage levy; divided by total funded
1107	weighted full-time equivalent students in the school district;
1108	multiplied by the weighted full-time equivalent students for the
1109	charter school. Charter schools whose students or programs meet
1110	the eligibility criteria in law shall be entitled to their
1111	proportionate share of categorical program funds included in the
1112	total funds available in the Florida Education Finance Program
1113	by the Legislature, including transportation. Total funding for
1114	each charter school shall be recalculated during the year to
1115	reflect the revised calculations under the Florida Education
1116	Finance Program by the state and the actual weighted full-time
1117	equivalent students reported by the charter school during the
1118	full-time equivalent student survey periods designated by the
1119	Commissioner of Education.
1120	(c)  If the district school board is providing programs or
1121	services to students funded by federal funds, any eligible
1122	students enrolled in charter schools in the school district
1123	shall be provided federal funds for the same level of service
1124	provided students in the schools operated by the district school
1125	board. Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all
1126	charter schools shall receive all federal funding for which the
1127	school is otherwise eligible, including Title I funding, not
1128	later than 5 months after the charter school first opens and
1129	within 5 months after any subsequent expansion of enrollment.
1130	(d)  District school boards shall make every effort to
1131	ensure that charter schools receive timely and efficient payment
1132	and reimbursement to charter schools, including processing
1133	paperwork required to access special state and federal funding
1134	for which they may be eligible. The district school board may
1135	distribute funds to a charter school for up to 3 months based on
1136	the projected full-time equivalent student membership of the
1137	charter school. Thereafter, the results of full-time equivalent
1138	student membership surveys shall be used in adjusting the amount
1139	of funds distributed monthly to the charter school for the
1140	remainder of the fiscal year. The payment shall be issued no
1141	later than 10 working days after the district school board
1142	receives a distribution of state or federal funds. If a warrant
1143	for payment is not issued within 10 30 working days after
1144	receipt of funding by the district school board, the school
1145	district shall pay to the charter school, in addition to the
1146	amount of the scheduled disbursement, interest at a rate of 5 1
1147	percent per month calculated on a daily basis on the unpaid
1148	balance from the expiration of the 10 working days 30-day period
1149	until such time as the warrant is issued. The Commissioner of
1150	Education is authorized to withhold funds from school districts
1151	that fail to make timely payments and reimbursements.
1152	(e)  The State Board of Education shall have authority to
1153	impose a fine on or withhold lottery funds from a school
1154	district for any violation of the procedural requirements for
1155	charter school application, termination, or nonrenewal appeals
1156	regardless of whether the violation affects the fairness of the
1157	appeal process or the correctness of the action taken by the
1158	school district. Prior to the imposition of a fine or
1159	withholding of lottery funds under this paragraph, the State
1160	Board of Education shall provide the school district with notice
1161	of the amount of the proposed fine and an opportunity to be
1162	heard at a subsequent meeting of the State Board of Education.
1163	The funds collected for fines under this paragraph shall be
1164	taken from the school district's administrative fee under
1165	paragraph (20)(a) and disbursed to the prevailing charter school
1166	appellant under this section or, if the charter school
1167	appellant's appeal is denied, in equal amounts to each of the
1168	charter schools within the school district. The imposition of a
1169	fine under this paragraph shall not exceed $10,000 and is a
1170	final action subject to judicial review in the district court of
1171	appeals.
1172	(18)  FACILITIES.--
1173	(a)  A startup charter school shall utilize facilities
1174	which comply with the Florida Building Code pursuant to chapter
1175	553 except for the State Requirements for Educational
1176	Facilities. Conversion charter schools shall utilize facilities
1177	which comply with the State Requirements for Educational
1178	Facilities provided that the school district and the charter
1179	school have entered into a mutual management plan with
1180	sufficient funding from the school district to comply with the
1181	State Requirements for Educational Facilities. Charter schools,
1182	with the exception of conversion charter schools, are not
1183	required to comply, but may choose to comply, with the State
1184	Requirements for Educational Facilities of the Florida Building
1185	Code adopted pursuant to s. 1013.37. The local governing
1186	authority shall not adopt or impose local building requirements
1187	or restrictions that are more stringent than those found in the
1188	Florida Building Code. The agency having jurisdiction for
1189	inspection of a facility and issuance of a certificate of
1190	occupancy shall be the local municipality or, if in an
1191	unincorporated area, the county governing authority.
1192	(b)  A charter school shall utilize facilities that comply
1193	with the Florida Fire Prevention Code, pursuant to s. 633.025,
1194	as adopted by the authority in whose jurisdiction the facility
1195	is located as provided in paragraph (a).
1196	(c)  Any facility, or portion thereof, used to house a
1197	charter school whose charter has been approved by the sponsor
1198	and the governing board, pursuant to subsection (7), shall be
1199	exempt from ad valorem taxes pursuant to s. 196.1983. Library,
1200	community service, museum, performing arts, theatre, cinema,
1201	church, community college, college, and university facilities
1202	may provide space to charter schools within their facilities
1203	under their preexisting zoning and land use designations.
1204	(d)  Charter school facilities are exempt from assessments
1205	of fees for building permits, except as provided in s. 553.80,
1206	fees and for building and occupational licenses, and from
1207	assessments of impact fees or service availability fees.
1208	(e)  If a district school board facility or property is
1209	available because it is surplus, marked for disposal, or
1210	otherwise unused, it shall be provided for a charter school's
1211	use on the same basis as it is made available to other public
1212	schools in the district. A charter school receiving property
1213	from the school district may not sell or dispose of such
1214	property without written permission of the school district.
1215	Similarly, for an existing public school converting to charter
1216	status, no rental or leasing fee for the existing facility or
1217	for the property normally inventoried to the conversion school
1218	may be charged by the district school board to the parents and
1219	teachers organizing the charter school. The charter school
1220	organizers shall agree to reasonable maintenance provisions in
1221	order to maintain the facility in a manner similar to district
1222	school board standards. The Public Education Capital Outlay
1223	maintenance funds or any other maintenance funds generated by
1224	the facility operated as a conversion school shall remain with
1225	the conversion school.
1226	(f)  To the extent that charter school facilities are
1227	specifically created to mitigate the educational impact created
1228	by the development of new residential dwelling units, pursuant
1229	to subparagraph (2)(c)4., some of or all of the educational
1230	impact fees required to be paid in connection with the new
1231	residential dwelling units may be designated instead for the
1232	construction of the charter school facilities that will mitigate
1233	the student station impact. Such facilities shall be built to
1234	the State Requirements for Educational Facilities and shall be
1235	owned by a public or nonprofit entity. The local school district
1236	retains the right to monitor and inspect such facilities to
1237	ensure compliance with the State Requirements for Educational
1238	Facilities. If a facility ceases to be used for public
1239	educational purposes, either the facility shall revert to the
1240	school district subject to any debt owed on the facility, or the
1241	owner of the facility shall have the option to refund all
1242	educational impact fees utilized for the facility to the school
1243	district. The district and the owner of the facility may
1244	contractually agree to another arrangement for the facilities if
1245	the facilities cease to be used for educational purposes. The
1246	owner of property planned or approved for new residential
1247	dwelling units and the entity levying educational impact fees
1248	shall enter into an agreement that designates the educational
1249	impact fees that will be allocated for the charter school
1250	student stations and that ensures the timely construction of the
1251	charter school student stations concurrent with the expected
1252	occupancy of the residential units. The application for use of
1253	educational impact fees shall include an approved charter school
1254	application. To assist the school district in forecasting
1255	student station needs, the entity levying the impact fees shall
1256	notify the affected district of any agreements it has approved
1257	for the purpose of mitigating student station impact from the
1258	new residential dwelling units.
1259	(19)  CAPITAL OUTLAY FUNDING.--Charter schools are eligible
1260	for capital outlay funds pursuant to s. 1013.62.
1261	(20)  SERVICES.--
1262	(a)  A sponsor shall provide certain administrative and
1263	educational services to charter schools. These services shall
1264	include contract management services; full-time equivalent and
1265	data reporting services; exceptional student education
1266	administration and evaluation services; test administration
1267	services, including payment of the costs of state-required or
1268	district-required student assessments; processing of teacher
1269	certificate data services; and information services, including
1270	equal access to student information systems that are used by
1271	public schools in the district in which the charter school is
1272	located. A total administrative fee for the provision of such
1273	services shall be calculated based upon up to 5 percent of the
1274	available funds defined in paragraph (17)(b) for all students.
1275	However, a sponsor may only withhold up to a 5-percent
1276	administrative fee for enrollment for up to and including 500
1277	students. For charter schools with a population of 501 or more
1278	students, the difference between the total administrative fee
1279	calculation and the amount of the administrative fee withheld
1280	may only be used for capital outlay purposes specified in s.
1281	1013.62(4)(2). Sponsors shall not charge charter schools any
1282	additional fees or surcharges for administrative and educational
1283	services in addition to the maximum 5-percent administrative fee
1284	withheld pursuant to this paragraph.
1285	(b)  If goods and services are made available to the
1286	charter school through the contract with the school district,
1287	they shall be provided to the charter school at a rate no
1288	greater than the district's actual cost unless mutually agreed
1289	upon by the charter school and the sponsor in a contract
1290	negotiated separately from the charter. When mediation has
1291	failed to resolve disputes over contracted services or
1292	contractual matters not included in the charter, an appeal may
1293	be made for a dispute resolution hearing before the Charter
1294	School Appeal Commission. To maximize the use of state funds,
1295	school districts shall allow charter schools to participate in
1296	the sponsor's bulk purchasing program if applicable.
1297	(c)  Transportation of charter school students shall be
1298	provided by the charter school consistent with the requirements
1299	of subpart I.E. of chapter 1006 and s. 1012.45. The governing
1300	body of the charter school may provide transportation through an
1301	agreement or contract with the district school board, a private
1302	provider, or parents. The charter school and the sponsor shall
1303	cooperate in making arrangements that ensure that transportation
1304	is not a barrier to equal access for all students residing
1305	within a reasonable distance of the charter school as determined
1306	in its charter.
1307	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--The
1308	Department of Education shall provide information to the public,
1309	directly and through sponsors, both on how to form and operate a
1310	charter school and on how to enroll in charter schools once they
1311	are created. This information shall include a standard
1312	application format, charter format, and charter renewal format
1313	which shall include the information specified in subsection (7).
1314	These formats shall This application format may be used as
1315	guidelines by charter school sponsors chartering entities.
1316	(22)  CHARTER SCHOOL REVIEW PANEL AND LEGISLATIVE REVIEW.--
1317	(a)  The Department of Education shall staff and regularly
1318	convene a Charter School Review Panel in order to review issues,
1319	practices, and policies regarding charter schools. The
1320	composition of the review panel shall include individuals with
1321	experience in finance, administration, law, education, and
1322	school governance, and individuals familiar with charter school
1323	construction and operation. The panel shall include two
1324	appointees each from the Commissioner of Education, the
1325	President of the Senate, and the Speaker of the House of
1326	Representatives. The Governor shall appoint three members of the
1327	panel and shall designate the chair. Each member of the panel
1328	shall serve a 1-year term, unless renewed by the office making
1329	the appointment. The panel shall make recommendations to the
1330	Legislature, to the Department of Education, to charter schools,
1331	and to school districts for improving charter school operations
1332	and oversight and for ensuring best business practices at and
1333	fair business relationships with charter schools.
1334	(b)  The Legislature shall review the operation of charter
1335	schools during the 2005 Regular Session of the Legislature.
1336	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
1337	of the annual report required by paragraph (9)(m)(l), the
1338	Department of Education shall provide to the State Board of
1339	Education, the Commissioner of Education, the Governor, the
1340	President of the Senate, and the Speaker of the House of
1341	Representatives an analysis and comparison of the overall
1342	performance of charter school students, to include all students
1343	whose scores are counted as part of the statewide assessment
1344	program, versus comparable public school students in the
1345	district as determined by the statewide assessment program
1346	currently administered in the school district, and other
1347	assessments administered pursuant to s. 1008.22(3).
1348	(24)  RULEMAKING.--The Department of Education, after
1349	consultation with school districts and charter school directors,
1350	shall recommend that the State Board of Education adopt rules to
1351	implement specific subsections of this section. Such rules shall
1352	require minimum paperwork and shall not limit charter school
1353	flexibility authorized by statute.
1354	Section 2.  Subsection (5) of section 218.39, Florida
1355	Statutes, is amended to read:
1356	218.39  Annual financial audit reports.--
1357	(5)  At the conclusion of the audit, the auditor shall
1358	discuss with the chair of each local governmental entity or the
1359	chair's designee, or with the elected official of each county
1360	agency or with the elected official's designee, or with the
1361	chair of the district school board or the chair's designee, or
1362	with the chair of the board of the charter school or the chair's
1363	designee, or with the chair of the charter technical career
1364	center or the chair's designee, as appropriate, all of the
1365	auditor's comments that will be included in the audit report. If
1366	the officer is not available to discuss the auditor's comments,
1367	their discussion is presumed when the comments are delivered in
1368	writing to his or her office. The auditor shall notify each
1369	member of the governing body of a local governmental entity, or
1370	district school board, or charter school for which deteriorating
1371	financial conditions exist that may cause a condition described
1372	in s. 218.503(1) to occur if actions are not taken to address
1373	such conditions.
1374	Section 3.  Section 218.50, Florida Statutes, is amended to
1375	read:
1376	218.50  Short title.--Sections 218.50-218.504 may be cited
1377	as the "Local Governmental Entity, Charter School, and District
1378	School Board Financial Emergencies Act."
1379	Section 4.  Section 218.501, Florida Statutes, is amended
1380	to read:
1381	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
1382	(1)  To promote the fiscal responsibility of local
1383	governmental entities, charter schools, and district school
1384	boards.
1385	(2)  To assist local governmental entities, charter
1386	schools, and district school boards in providing essential
1387	services without interruption and in meeting their financial
1388	obligations.
1389	(3)  To assist local governmental entities, charter
1390	schools, and district school boards through the improvement of
1391	local financial management procedures.
1392	Section 5.  Section 218.503, Florida Statutes, is amended
1393	to read:
1394	218.503  Determination of financial emergency.--
1395	(1)  Local governmental entities, charter schools, and
1396	district school boards shall be subject to review and oversight
1397	by the Governor, charter school sponsor, or the Commissioner of
1398	Education, as appropriate, when any one of the following
1399	conditions occurs:
1400	(a)  Failure within the same fiscal year in which due to
1401	pay short-term loans or failure to make bond debt service or
1402	other long-term debt payments when due, as a result of a lack of
1403	funds.
1404	(b)  Failure to pay uncontested claims from creditors
1405	within 90 days after the claim is presented, as a result of a
1406	lack of funds.
1407	(c)  Failure to transfer at the appropriate time, due to
1408	lack of funds:
1409	1.  Taxes withheld on the income of employees; or
1410	2.  Employer and employee contributions for:
1411	a.  Federal social security; or
1412	b.  Any pension, retirement, or benefit plan of an
1413	employee.
1414	(d)  Failure for one pay period to pay, due to lack of
1415	funds:
1416	1.  Wages and salaries owed to employees; or
1417	2.  Retirement benefits owed to former employees.
1418	(e)  An unreserved or total fund balance or retained
1419	earnings deficit, or unrestricted or total net assets deficit,
1420	as reported on the balance sheet or statement of net assets on
1421	the general purpose or fund financial statements, for which
1422	sufficient resources of the local governmental entity, as
1423	reported on the balance sheet or statement of net assets on the
1424	general purpose or fund financial statements, are not available
1425	to cover the deficit. Resources available to cover reported
1426	deficits include net assets that are not otherwise restricted by
1427	federal, state, or local laws, bond covenants, contractual
1428	agreements, or other legal constraints. Fixed or capital assets,
1429	the disposal of which would impair the ability of a local
1430	governmental entity to carry out its functions, are not
1431	considered resources available to cover reported deficits.
1432	(2)  A local governmental entity shall notify the Governor
1433	and the Legislative Auditing Committee, a charter school shall
1434	notify the charter school sponsor and the Legislative Auditing
1435	Committee, and a district school board shall notify the
1436	Commissioner of Education and the Legislative Auditing
1437	Committee, when one or more of the conditions specified in
1438	subsection (1) have occurred or will occur if action is not
1439	taken to assist the local governmental entity, charter school,
1440	or district school board. In addition, any state agency must,
1441	within 30 days after a determination that one or more of the
1442	conditions specified in subsection (1) have occurred or will
1443	occur if action is not taken to assist the local governmental
1444	entity, charter school, or district school board, notify the
1445	Governor, charter school sponsor, or the Commissioner of
1446	Education, as appropriate, and the Legislative Auditing
1447	Committee.
1448	(3)  Upon notification that one or more of the conditions
1449	in subsection (1) exist, the Governor or his or her designee
1450	shall contact the local governmental entity or the Commissioner
1451	of Education or his or her designee shall contact the district
1452	school board to determine what actions have been taken by the
1453	local governmental entity or the district school board to
1454	resolve the condition. The Governor or the Commissioner of
1455	Education, as appropriate, shall determine whether the local
1456	governmental entity or the district school board needs state
1457	assistance to resolve the condition. If state assistance is
1458	needed, the local governmental entity or district school board
1459	is considered to be in a state of financial emergency. The
1460	Governor or the Commissioner of Education, as appropriate, has
1461	the authority to implement measures as set forth in ss. 218.50-
1462	218.504 to assist the local governmental entity or district
1463	school board in resolving the financial emergency. Such measures
1464	may include, but are not limited to:
1465	(a)  Requiring approval of the local governmental entity's
1466	budget by the Governor or approval of the district school
1467	board's budget by the Commissioner of Education.
1468	(b)  Authorizing a state loan to a local governmental
1469	entity and providing for repayment of same.
1470	(c)  Prohibiting a local governmental entity or district
1471	school board from issuing bonds, notes, certificates of
1472	indebtedness, or any other form of debt until such time as it is
1473	no longer subject to this section.
1474	(d)  Making such inspections and reviews of records,
1475	information, reports, and assets of the local governmental
1476	entity or district school board. The appropriate local officials
1477	shall cooperate in such inspections and reviews.
1478	(e)  Consulting with officials and auditors of the local
1479	governmental entity or the district school board and the
1480	appropriate state officials regarding any steps necessary to
1481	bring the books of account, accounting systems, financial
1482	procedures, and reports into compliance with state requirements.
1483	(f)  Providing technical assistance to the local
1484	governmental entity or the district school board.
1485	(g)1.  Establishing a financial emergency board to oversee
1486	the activities of the local governmental entity or the district
1487	school board. If a financial emergency board is established for
1488	a local governmental entity, the Governor shall appoint board
1489	members and select a chair. If a financial emergency board is
1490	established for a district school board, the State Board of
1491	Education shall appoint board members and select a chair. The
1492	financial emergency board shall adopt such rules as are
1493	necessary for conducting board business. The board may:
1494	a.  Make such reviews of records, reports, and assets of
1495	the local governmental entity or the district school board as
1496	are needed.
1497	b.  Consult with officials and auditors of the local
1498	governmental entity or the district school board and the
1499	appropriate state officials regarding any steps necessary to
1500	bring the books of account, accounting systems, financial
1501	procedures, and reports of the local governmental entity or the
1502	district school board into compliance with state requirements.
1503	c.  Review the operations, management, efficiency,
1504	productivity, and financing of functions and operations of the
1505	local governmental entity or the district school board.
1506	2.  The recommendations and reports made by the financial
1507	emergency board must be submitted to the Governor for local
1508	governmental entities or to the Commissioner of Education and
1509	the State Board of Education for district school boards for
1510	appropriate action.
1511	(h)  Requiring and approving a plan, to be prepared by
1512	officials of the local governmental entity or the district
1513	school board in consultation with the appropriate state
1514	officials, prescribing actions that will cause the local
1515	governmental entity or district school board to no longer be
1516	subject to this section. The plan must include, but need not be
1517	limited to:
1518	1.  Provision for payment in full of obligations outlined
1519	in subsection (1), designated as priority items, that are
1520	currently due or will come due.
1521	2.  Establishment of priority budgeting or zero-based
1522	budgeting in order to eliminate items that are not affordable.
1523	3.  The prohibition of a level of operations which can be
1524	sustained only with nonrecurring revenues.
1525	(4)  Upon notification that one or more of the conditions
1526	in subsection (1) exist, the charter school sponsor or the
1527	sponsor's designee shall contact the charter school governing
1528	board to determine what actions have been taken by the charter
1529	school governing board to resolve the condition. The charter
1530	school sponsor has the authority to require and approve a
1531	financial recovery plan, to be prepared by the charter school
1532	governing board, prescribing actions that will cause the charter
1533	school to no longer be subject to this section. The Department
1534	of Education must establish guidelines for developing such
1535	plans.
1536	(5)(4)  A local governmental entity or district school
1537	board may not seek application of laws under the bankruptcy
1538	provisions of the United States Constitution except with the
1539	prior approval of the Governor for local governmental entities
1540	or the Commissioner of Education for district school boards.
1541	(6)(5)(a)  The governing authority of any municipality
1542	having a resident population of 300,000 or more on or after
1543	April 1, 1999, which has been declared in a state of financial
1544	emergency pursuant to this section may impose a discretionary
1545	per-vehicle surcharge of up to 20 percent on the gross revenues
1546	of the sale, lease, or rental of space at parking facilities
1547	within the municipality which are open for use to the general
1548	public.
1549	(b)  A municipal governing authority that imposes the
1550	surcharge authorized by this subsection may use the proceeds of
1551	such surcharge for the following purposes only:
1552	1.  No less than 60 percent and no more than 80 percent of
1553	the surcharge proceeds shall be used by the governing authority
1554	to reduce its ad valorem tax millage rate or to reduce or
1555	eliminate non-ad valorem assessments.
1556	2.  A portion of the balance of the surcharge proceeds
1557	shall be used by the governing authority to increase its budget
1558	reserves; however, the governing authority shall not reduce the
1559	amount it allocates for budget reserves from other sources below
1560	the amount allocated for reserves in the fiscal year prior to
1561	the year in which the surcharge is initially imposed. When a 15-
1562	percent budget reserve is achieved, based on the average gross
1563	revenue for the most recent 3 prior fiscal years, the remaining
1564	proceeds from this subparagraph shall be used for the payment of
1565	annual debt service related to outstanding obligations backed or
1566	secured by a covenant to budget and appropriate from non-ad
1567	valorem revenues.
1568	(c)  This subsection expires June 30, 2006.
1569	Section 6.  Subsection (1) of section 218.504, Florida
1570	Statutes, is amended to read:
1571	218.504  Cessation of state action.--The Governor or the
1572	Commissioner of Education, as appropriate, has the authority to
1573	terminate all state actions pursuant to ss. 218.50-218.504.
1574	Cessation of state action must not occur until the Governor or
1575	the Commissioner of Education, as appropriate, has determined
1576	that:
1577	(1)  The local governmental entity, charter school, or
1578	district school board:
1579	(a)  Has established and is operating an effective
1580	financial accounting and reporting system.
1581	(b)  Has resolved the conditions outlined in s. 218.503(1).
1582	Section 7.  Paragraph (e) of subsection (7) and subsection
1583	(8) of section 11.45, Florida Statutes, are amended to read:
1584	11.45  Definitions; duties; authorities; reports; rules.--
1585	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
1586	(e)  The Auditor General shall notify the Governor or the
1587	Commissioner of Education, as appropriate, and the Legislative
1588	Auditing Committee of any audit report reviewed by the Auditor
1589	General pursuant to paragraph (b) which contains a statement
1590	that a local governmental entity, charter school, or district
1591	school board has met one or more of the conditions specified in
1592	s. 218.503. If the Auditor General requests a clarification
1593	regarding information included in an audit report to determine
1594	whether a local governmental entity, charter school, or district
1595	school board has met one or more of the conditions specified in
1596	s. 218.503, the requested clarification must be provided within
1597	45 days after the date of the request. If the local governmental
1598	entity, charter school, or district school board does not comply
1599	with the Auditor General's request, the Auditor General shall
1600	notify the Legislative Auditing Committee. If, after obtaining
1601	the requested clarification, the Auditor General determines that
1602	the local governmental entity, charter school, or district
1603	school board has met one or more of the conditions specified in
1604	s. 218.503, he or she shall notify the Governor or the
1605	Commissioner of Education, as appropriate, and the Legislative
1606	Auditing Committee.
1607	(8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
1608	consultation with the Board of Accountancy, shall adopt rules
1609	for the form and conduct of all financial audits performed by
1610	independent certified public accountants pursuant to ss.
1611	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
1612	audits of local governmental entities, charter schools, and
1613	district school boards must include, but are not limited to,
1614	requirements for the reporting of information necessary to carry
1615	out the purposes of the Local Governmental Entity, Charter
1616	School, and District School Board Financial Emergencies Act as
1617	stated in s. 218.501.
1618	Section 8.  Subsection (1) and paragraph (a) of subsection
1619	(2) of section 166.271, Florida Statutes, are amended to read:
1620	166.271  Surcharge on municipal facility parking fees.--
1621	(1)  The governing authority of any municipality with a
1622	resident population of 200,000 or more, more than 20 percent of
1623	the real property of which is exempt from ad valorem taxes, and
1624	which is located in a county with a population of more than
1625	500,000 may impose and collect, subject to referendum approval
1626	by voters in the municipality, a discretionary per vehicle
1627	surcharge of up to 15 percent of the amount charged for the
1628	sale, lease, or rental of space at parking facilities within the
1629	municipality which are open for use to the general public and
1630	which are not airports, seaports, county administration
1631	buildings, or other projects as defined under ss. 125.011 and
1632	125.015, provided that this surcharge shall not take effect
1633	while any surcharge imposed pursuant to s. 218.503(6)(5)(a), is
1634	in effect.
1635	(2)  A municipal governing authority that imposes the
1636	surcharge authorized by this subsection may use the proceeds of
1637	such surcharge for the following purposes only:
1638	(a)  No less than 60 percent and no more than 80 percent of
1639	surcharge proceeds shall be used to reduce the municipality's ad
1640	valorem tax millage or to reduce or eliminate non-ad valorem
1641	assessments, unless the municipality has previously used the
1642	proceeds from the surcharge levied under s. 218.503(6)(5)(b) to
1643	reduce the municipality's ad valorem tax millage or to reduce
1644	non-ad valorem assessments.
1645	Section 9.  Paragraph (a) of subsection (9) and paragraph
1646	(b) of subsection (11) of section 1002.32, Florida Statutes, are
1647	amended to read:
1648	1002.32  Developmental research (laboratory) schools.--
1649	(9)  FUNDING.--Funding for a lab school, including a
1650	charter lab school, shall be provided as follows:
1651	(a)  Each lab school shall be allocated its proportional
1652	share of operating funds from the Florida Education Finance
1653	Program as provided in s. 1011.62 based on the county in which
1654	the lab school is located and the General Appropriations Act.
1655	The nonvoted ad valorem millage that would otherwise be required
1656	for lab schools shall be allocated from state funds. The
1657	required local effort funds calculated pursuant to s. 1011.62
1658	shall be allocated from state funds to the schools as a part of
1659	the allocation of operating funds pursuant to s. 1011.62. Each
1660	eligible lab school in operation as of September 1, 2002, shall
1661	also receive a proportional share of the sparsity supplement as
1662	calculated pursuant to s. 1011.62. In addition, each lab school
1663	shall receive its proportional share of all categorical funds,
1664	with the exception of s. 1011.68, and new categorical funds
1665	enacted after July 1, 1994, for the purpose of elementary or
1666	secondary academic program enhancement. However, if a lab
1667	school, in the fulfillment of its requirements to have a
1668	representative student population pursuant to subsection (4),
1669	elects to provide student transportation, the lab school shall
1670	be eligible for funding pursuant to s. 1011.68. The sum of funds
1671	available as provided in this paragraph shall be included
1672	annually in the Florida Education Finance Program and
1673	appropriate categorical programs funded in the General
1674	Appropriations Act.
1675	(11)  EXCEPTIONS TO LAW.--To encourage innovative practices
1676	and facilitate the mission of the lab schools, in addition to
1677	the exceptions to law specified in s. 1001.23(2), the following
1678	exceptions shall be permitted for lab schools:
1679	(b)  With the exception of s. 1001.42(16), s. 1001.42 shall
1680	be held in abeyance, except that a lab school, in the
1681	fulfillment of its requirements to have a representative student
1682	population pursuant to subsection (4), may elect to provide
1683	transportation in accordance with s. 1001.42(8). Reference to
1684	district school boards in s. 1001.42(16) shall mean the
1685	president of the university or the president's designee.
1686	Section 10.  Subsection (3) of section 1003.05, Florida
1687	Statutes, is amended to read:
1688	1003.05  Assistance to transitioning students from military
1689	families.--
1690	(3)  Dependent children of active duty military personnel
1691	who otherwise meet the eligibility criteria for special academic
1692	programs offered through public schools shall be given first
1693	preference for admission to such programs even if the program is
1694	being offered through a public school other than the school to
1695	which the student would generally be assigned and the school at
1696	which the program is being offered has reached its maximum
1697	enrollment. If such a program is offered through a public school
1698	other than the school to which the student would generally be
1699	assigned, the parent or guardian of the student must assume
1700	responsibility for transporting the student to that school. For
1701	purposes of this subsection, special academic programs include
1702	charter schools, magnet schools, advanced studies programs,
1703	advanced placement, dual enrollment, and International
1704	Baccalaureate.
1705	Section 11.  Effective July 1, 2006, subsection (2) of
1706	section 1012.74, Florida Statutes, is amended to read:
1707	1012.74  Florida educators professional liability insurance
1708	protection.--
1709	(2)(a)  Educator professional liability coverage for all
1710	instructional personnel, including charter school instructional
1711	personnel, as defined by s. 1012.01(2), who are full-time
1712	personnel, as defined by the district school board policy, shall
1713	be provided by specific appropriations under the General
1714	Appropriations Act.
1715	(b)  Educator professional liability coverage shall be
1716	extended at cost to all instructional personnel, including
1717	charter school instructional personnel, as defined by s.
1718	1012.01(2), who are part-time personnel, as defined by the
1719	district school board policy, and choose to participate in the
1720	state-provided program.
1721	(c)  Educator professional liability coverage shall be
1722	extended at cost to all administrative personnel, including
1723	administrative personnel in charter schools, as defined by s.
1724	1012.01(3), who choose to participate in the state-provided
1725	program.
1726	Section 12.  Section 1013.62, Florida Statutes, is amended
1727	to read:
1728	1013.62  Charter schools capital outlay funding.--
1729	(1)  In each year in which funds are appropriated for
1730	charter school capital outlay purposes, the Commissioner of
1731	Education shall allocate the funds among eligible charter
1732	schools. To be eligible for a funding allocation, a charter
1733	school must be one of the following:
1734	(a)  The same school that received capital outlay funding
1735	in 2002-2003.
1736	(b)  A charter school that is an expanded feeder pattern of
1737	a charter school that received capital outlay funding in 2002-
1738	2003.
1739	(2)  If an appropriation for charter school capital outlay
1740	funds is less than the 2002-2003 appropriation, the funds shall
1741	be prorated among schools eligible pursuant to subsection (1).
1742	(3)  If an appropriation for charter school capital outlay
1743	funds is greater than the 2002-2003 appropriation, the funds
1744	shall be allocated to schools eligible pursuant to subsection
1745	(1) and to charter schools that:
1746	(a)1.  Have been in operation for 3 or more years;
1747	2.  Are Be an expanded feeder chain of a charter school
1748	within the same school district that is currently receiving
1749	charter school capital outlay funds; or
1750	3.  Have been accredited by the Commission on Schools of
1751	the Southern Association of Colleges and Schools.
1752	(b)  Have financial stability for future operation as a
1753	charter school.
1754	(c)  Have received a school grade of "A" or "B," pursuant
1755	to s. 1008.34, during 3 of the past 4 school years satisfactory
1756	student achievement based on state accountability standards
1757	applicable to the charter school.
1758	(d)  Have received final approval from its sponsor pursuant
1759	to s. 1002.33 for operation during that fiscal year.
1760	(e)  Serve students in facilities that are not provided by
1761	the charter school's sponsor.
1762
1763	First priority for allocating the amount in excess of the 2002-
1764	2003 appropriation shall be to prorate the excess funds among
1765	charter schools with long-term debt or long-term lease to the
1766	extent that the initial allocation is insufficient to provide
1767	one-fifteenth of the cost-per-student station specified in s.
1768	1013.64(6)(b) and second priority shall be to other eligible
1769	charter schools. Prior to the release of capital outlay funds to
1770	a school district on behalf of the charter school, the
1771	Department of Education shall ensure that the district school
1772	board and the charter school governing board enter into a
1773	written agreement that includes provisions for the reversion of
1774	any unencumbered funds and all equipment and property purchased
1775	with public education funds to the ownership of the district
1776	school board, as provided for in subsection (5)(3), in the event
1777	that the school terminates operations. Any funds recovered by
1778	the state shall be deposited in the General Revenue Fund. A
1779	charter school is not eligible for a funding allocation if it
1780	was created by the conversion of a public school and operates in
1781	facilities provided by the charter school's sponsor for a
1782	nominal fee or at no charge or if it is directly or indirectly
1783	operated by the school district. Unless otherwise provided in
1784	the General Appropriations Act, the funding allocation for each
1785	eligible charter school shall be determined by multiplying the
1786	school's projected student enrollment by one-fifteenth of the
1787	cost-per-student station specified in s. 1013.64(6)(b) for an
1788	elementary, middle, or high school, as appropriate. If the funds
1789	appropriated are not sufficient, the commissioner shall prorate
1790	the available funds among eligible charter schools. However, no
1791	charter school or charter lab school shall receive state charter
1792	school capital outlay funds in excess of the one-fifteenth cost
1793	per student station formula if the charter school's combination
1794	of state charter school capital outlay funds, capital outlay
1795	funds calculated through the reduction in the administrative fee
1796	provided in s. 1002.33(20), and capital outlay funds allowed in
1797	s. 1002.32(9)(e) and (h) exceeds the one-fifteenth cost per
1798	student station formula. Funds shall be distributed on the basis
1799	of the capital outlay full-time equivalent membership by grade
1800	level, which shall be calculated by averaging the results of the
1801	second and third enrollment surveys. The Department of Education
1802	shall distribute capital outlay funds monthly, beginning in the
1803	first quarter of the fiscal year, based on one-twelfth of the
1804	amount the department reasonably expects the charter school to
1805	receive during that fiscal year. The commissioner shall adjust
1806	subsequent distributions as necessary to reflect each charter
1807	school's actual student enrollment as reflected in the second
1808	and third enrollment surveys. The commissioner shall establish
1809	the intervals and procedures for determining the projected and
1810	actual student enrollment of eligible charter schools.
1811	(4)(2)  A charter school's governing body may use charter
1812	school capital outlay funds for the following purposes:
1813	(a)  Purchase of real property.
1814	(b)  Construction of school facilities.
1815	(c)  Purchase, lease-purchase, or lease of permanent or
1816	relocatable school facilities.
1817	(d)  Purchase of vehicles to transport students to and from
1818	the charter school.
1819	(e)  Renovation, repair, and maintenance of school
1820	facilities that the charter school owns or is purchasing through
1821	a lease-purchase or long-term lease of 5 years or longer or
1822	furnishing or equipping such facilities.
1823
1824	Conversion charter schools may use capital outlay funds received
1825	through the reduction in the administrative fee provided in s.
1826	1002.33(20) for renovation, repair, and maintenance of school
1827	facilities that are owned by the sponsor.
1828	(5)(3)  When a charter school is nonrenewed or terminated,
1829	any unencumbered funds and all equipment and property purchased
1830	with district public funds shall revert to the ownership of the
1831	district school board, as provided for in s. 1002.33(8)(e) and
1832	(f). In the case of a charter lab school, any unencumbered funds
1833	and all equipment and property purchased with university public
1834	funds shall revert to the ownership of the state university that
1835	issued the charter. The reversion of such equipment, property,
1836	and furnishings shall focus on recoverable assets, but not on
1837	intangible or irrecoverable costs such as rental or leasing
1838	fees, normal maintenance, and limited renovations. The reversion
1839	of all property secured with public funds is subject to the
1840	complete satisfaction of all lawful liens or encumbrances. If
1841	there are additional local issues such as the shared use of
1842	facilities or partial ownership of facilities or property, these
1843	issues shall be agreed to in the charter contract prior to the
1844	expenditure of funds.
1845	(6)(4)  The Commissioner of Education shall specify
1846	procedures for submitting and approving requests for funding
1847	under this section and procedures for documenting expenditures.
1848	(7)(5)  The annual legislative budget request of the
1849	Department of Education shall include a request for capital
1850	outlay funding for charter schools. The request shall be based
1851	on the projected number of students to be served in charter
1852	schools who meet the eligibility requirements of this section. A
1853	dedicated funding source, if identified in writing by the
1854	Commissioner of Education and submitted along with the annual
1855	charter school legislative budget request, may be considered an
1856	additional source of funding.
1857	(8)(6)  Unless authorized otherwise by the Legislature,
1858	allocation and proration of charter school capital outlay funds
1859	shall be made to eligible charter schools by the Commissioner of
1860	Education in an amount and in a manner authorized by subsections
1861	(2) and (3) subsection (1).
1862	(7)  Notwithstanding the provisions of this section,
1863	beginning in the 2003-2004 fiscal year:
1864	(a)  If the appropriation for charter school capital outlay
1865	funds is no greater than the 2002-2003 appropriation, the funds
1866	shall be allocated according to the formula outlined in
1867	subsection (1) to:
1868	1.  The same schools that received funding in 2002-2003.
1869	2.  Schools that are an expanded feeder pattern of schools
1870	that received funding in 2002-2003.
1871	3.  Schools that have an approved charter and are serving
1872	students at the start of the 2003-2004 school year and either
1873	incurred long-term financial obligations prior to January 31,
1874	2003, or began construction on educational facilities prior to
1875	December 31, 2002.
1876	(b)  If the appropriation for charter school capital outlay
1877	funds is less than the 2002-2003 appropriation, the funds shall
1878	be prorated among the schools eligible in paragraph (a).
1879	(c)  If the appropriation for charter school capital outlay
1880	funds is greater than the 2002-2003 appropriation, the amount of
1881	funds provided in the 2002-2003 appropriation shall be allocated
1882	according to paragraph (a). First priority for allocating the
1883	amount in excess of the 2002-2003 appropriation shall be to
1884	prorate the excess funds among the charter schools with long-
1885	term debt or long-term lease to the extent that the initial
1886	allocation is insufficient to provide one-fifteenth of the cost
1887	per student station specified in s. 1013.64(6)(b), and second
1888	priority shall be to other eligible charter schools.
1889	Section 13.  Charter School Task Force.--
1890	(1)  The Charter School Task Force is established to study
1891	and make recommendations regarding charter schools in the state.
1892	(2)  The task force shall, at a minimum:
1893	(a)  Review current application and sponsorship procedures
1894	used throughout the state for the approval of charter schools.
1895	(b)  Examine the sponsorship and organizational structure
1896	of charter schools in other states.
1897	(c)  Investigate alternative means available in the state
1898	to implement changes in the sponsorship of charter schools.
1899	(d)  Conduct meetings throughout the state to receive
1900	public input and consider policy recommendations on issues
1901	related to charter schools.
1902	(e)  Issue a final report and recommendations by December
1903	31, 2005, to the Governor, the President of the Senate, and the
1904	Speaker of the House of Representatives.
1905	(3)  The task force shall consist of:
1906	(a)  Up to four members of the House of Representatives
1907	appointed by the Speaker of the House of Representatives.
1908	(b)  Up to four members of the Senate appointed by the
1909	President of the Senate.
1910	(c)  Up to four charter school stakeholders appointed by
1911	the Governor, to include a representative of a charter school, a
1912	representative of a school district, a representative of a
1913	statewide association, and a representative with experience in
1914	charter school law.
1915	(4)  The Governor shall appoint the chair of the task force
1916	from among the appointed members.
1917	(5)  Task force members shall serve without compensation
1918	but are entitled to reimbursement, pursuant to s. 112.061,
1919	Florida Statutes, for per diem and travel expenses incurred in
1920	the performance of their official duties.
1921	(6)  The Department of Education shall provide staff
1922	support for the task force.
1923	Section 14.  Except as otherwise provided herein, this act
1924	shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.