Senate Bill sb2424

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    Florida Senate - 2006                                  SB 2424

    By Senator Webster





    9-1428B-06

  1                      A bill to be entitled

  2         An act relating to charter schools; amending s.

  3         1002.33, F.S.; revising the purposes for which

  4         a charter school may be established; revising

  5         certain requirements following the denial of an

  6         application for a conversion charter school by

  7         a district school board; providing for mutually

  8         agreed upon policies of a sponsor to apply to a

  9         charter school; requiring that the director,

10         governing board, and sponsor of a charter

11         school take certain action if the school is

12         graded "D" or "F"; revising certain

13         requirements for applying for a charter school;

14         requiring that the district school board

15         provide documentation of its denial of an

16         application to the applicant and the Department

17         of Education; providing for the district court

18         of appeal to review a decision by the State

19         Board of Education to deny an application for a

20         charter school; removing the authority of the

21         Charter School Appeal Commission to review a

22         dispute that is unresolved following mediation;

23         requiring that the Department of Education

24         provide certain training and assistance to

25         applicants for a charter school; revising the

26         requirements for developing a proposed charter;

27         providing that a charter termination or

28         nonrenewal is not subject to administrative

29         review; requiring that the governing board of

30         the charter school, the sponsor, and the

31         Department of Education be notified if an audit

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    Florida Senate - 2006                                  SB 2424
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 1         reveals a state of financial emergency with

 2         respect to the school; requiring such a school

 3         to file a financial-recovery plan with the

 4         sponsor; requiring the department to establish

 5         guidelines for financial-recovery plans;

 6         revising the initial term for a charter school

 7         and extending the authorized length of the

 8         charter for a school operated by specified

 9         entities; revising circumstances under which a

10         charter may be terminated or not renewed;

11         providing notice requirements following the

12         termination of a charter; providing for certain

13         funds to revert to the sponsor rather than the

14         district school board following nonrenewal or

15         termination of a charter; requiring that a

16         charter school notify the sponsor and file a

17         financial-recovery plan following an audit

18         indicating a state of financial emergency;

19         requiring that the Department of Education

20         develop an on-line annual accountability report

21         for charter schools; authorizing a charter

22         school to use certain specified facilities to

23         house the school; exempting a charter school

24         from occupational fees; requiring that a

25         sponsor assist the charter school in fulfilling

26         eligibility requirements for the federal lunch

27         program; revising requirements for the

28         Department of Education in providing

29         information to the public regarding charter

30         schools; requiring the department to provide

31         the staff for a Charter School Review Panel;

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    Florida Senate - 2006                                  SB 2424
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 1         requiring future legislative review of the

 2         operation of charter schools; amending s.

 3         1003.05, F.S.; removing charter schools from

 4         the special academic programs provided for

 5         students from military families; amending s.

 6         1013.62, F.S.; revising eligibility

 7         requirements for a charter school to receive

 8         capital outlay funding; providing an order of

 9         priority for allocations; providing for such

10         funds to be used for additional purposes;

11         amending s. 218.39, F.S.; including charter

12         schools within provisions governing annual

13         financial audit reports; amending ss. 218.50,

14         218.501, 218.503, and 218.504, F.S.;

15         designating ss. 218.50-218.504, F.S., as the

16         "Local Governmental Entity, Charter School, and

17         District School Board Financial Emergencies

18         Act"; including charter schools within

19         provisions requiring review and oversight by

20         the Governor, the charter school sponsor, or

21         the Commissioner of Education in the event of a

22         financial emergency; requiring that a charter

23         school notify the charter school sponsor and

24         the Legislative Auditing Committee when certain

25         events occur; prescribing actions to be taken

26         by the charter school; amending s. 1002.32,

27         F.S.; providing for a charter lab school to

28         receive funding for student transportation

29         under certain circumstances; providing an

30         effective date.

31  

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    Florida Senate - 2006                                  SB 2424
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 1  Be It Enacted by the Legislature of the State of Florida:

 2  

 3         Section 1.  Section 1002.33, Florida Statutes, is

 4  amended to read:

 5         1002.33  Charter schools.--

 6         (1)  AUTHORIZATION.--Charter schools shall be part of

 7  the state's program of public education. All charter schools

 8  in Florida are public schools. A charter school may be formed

 9  by creating a new school or converting an existing public

10  school to charter status. A public school may not use the term

11  charter in its name unless it has been approved under this

12  section.

13         (2)  GUIDING PRINCIPLES; PURPOSE.--

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

15  following principles:

16         1.  Meet high standards of student achievement while

17  providing parents flexibility to choose among diverse

18  educational opportunities within the state's public school

19  system.

20         2.  Promote enhanced academic success and financial

21  efficiency by aligning responsibility with accountability.

22         3.  Provide parents with sufficient information on

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

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

25  spent in the charter school.

26         (b)  Charter schools shall fulfill at least one of the

27  following purposes:

28         1.  Improve student learning and academic achievement.

29         2.  Increase learning opportunities for all students,

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

31  

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 1         3.  Create new professional opportunities for teachers,

 2  including ownership of the learning program at the school

 3  site.

 4         4.  Encourage the use of innovative learning methods.

 5         5.  Require the measurement of learning outcomes.

 6         (c)  Charter schools may fulfill the following

 7  purposes:

 8         1.  Create innovative measurement tools.

 9         2.  Provide rigorous competition within the public

10  school district to stimulate continual improvement in all

11  public schools.

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

13         4.  Mitigate the educational impact created by the

14  development of new residential dwelling units.

15         (3)  APPLICATION FOR CHARTER STATUS.--

16         (a)  An application for a new charter school may be

17  made by an individual, teachers, parents, a group of

18  individuals, a municipality, or a legal entity organized under

19  the laws of this state.

20         (b)  An application for a conversion charter school

21  shall be made by the district school board, the principal,

22  teachers, parents, or and/or the school advisory council at an

23  existing public school that has been in operation for at least

24  2 years prior to the application to convert., including A

25  public school-within-a-school that is designated as a school

26  by the district school board may also submit an application to

27  convert to charter status. An application submitted proposing

28  to convert an existing public school to a charter school shall

29  demonstrate the support of at least 50 percent of the teachers

30  employed at the school and 50 percent of the parents voting

31  whose children are enrolled at the school, provided that a

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 1  majority of the parents eligible to vote participate in the

 2  ballot process, according to rules adopted by the State Board

 3  of Education. A district school board denying an application

 4  for a conversion charter school shall provide notice of denial

 5  to the applicants in writing within 10 30 days after the

 6  meeting at which the district school board denied the

 7  application. The notice must identify specify the specific

 8  exact reasons for denial and must provide documentation

 9  supporting those reasons. A private school, parochial school,

10  or home education program shall not be eligible for charter

11  school status.

12         (4)  UNLAWFUL REPRISAL.--

13         (a)  No district school board, or district school board

14  employee who has control over personnel actions, shall take

15  unlawful reprisal against another district school board

16  employee because that employee is either directly or

17  indirectly involved with an application to establish a charter

18  school. As used in this subsection, the term "unlawful

19  reprisal" means an action taken by a district school board or

20  a school system employee against an employee who is directly

21  or indirectly involved in a lawful application to establish a

22  charter school, which occurs as a direct result of that

23  involvement, and which results in one or more of the

24  following: disciplinary or corrective action; adverse transfer

25  or reassignment, whether temporary or permanent; suspension,

26  demotion, or dismissal; an unfavorable performance evaluation;

27  a reduction in pay, benefits, or rewards; elimination of the

28  employee's position absent of a reduction in workforce as a

29  result of lack of moneys or work; or other adverse significant

30  changes in duties or responsibilities that are inconsistent

31  with the employee's salary or employment classification. The

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    Florida Senate - 2006                                  SB 2424
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 1  following procedures shall apply to an alleged unlawful

 2  reprisal that occurs as a consequence of an employee's direct

 3  or indirect involvement with an application to establish a

 4  charter school:

 5         1.  Within 60 days after the date upon which a reprisal

 6  prohibited by this subsection is alleged to have occurred, an

 7  employee may file a complaint with the Department of

 8  Education.

 9         2.  Within 3 working days after receiving a complaint

10  under this section, the Department of Education shall

11  acknowledge receipt of the complaint and provide copies of the

12  complaint and any other relevant preliminary information

13  available to each of the other parties named in the complaint,

14  which parties shall each acknowledge receipt of such copies to

15  the complainant.

16         3.  If the Department of Education determines that the

17  complaint demonstrates reasonable cause to suspect that an

18  unlawful reprisal has occurred, the Department of Education

19  shall conduct an investigation to produce a fact-finding

20  report.

21         4.  Within 90 days after receiving the complaint, the

22  Department of Education shall provide the district school

23  superintendent of the complainant's district and the

24  complainant with a fact-finding report that may include

25  recommendations to the parties or a proposed resolution of the

26  complaint. The fact-finding report shall be presumed

27  admissible in any subsequent or related administrative or

28  judicial review.

29         5.  If the Department of Education determines that

30  reasonable grounds exist to believe that an unlawful reprisal

31  has occurred, is occurring, or is to be taken, and is unable

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 1  to conciliate a complaint within 60 days after receipt of the

 2  fact-finding report, the Department of Education shall

 3  terminate the investigation. Upon termination of any

 4  investigation, the Department of Education shall notify the

 5  complainant and the district school superintendent of the

 6  termination of the investigation, providing a summary of

 7  relevant facts found during the investigation and the reasons

 8  for terminating the investigation. A written statement under

 9  this paragraph is presumed admissible as evidence in any

10  judicial or administrative proceeding.

11         6.  The Department of Education shall either contract

12  with the Division of Administrative Hearings under s. 120.65,

13  or otherwise provide for a complaint for which the Department

14  of Education determines reasonable grounds exist to believe

15  that an unlawful reprisal has occurred, is occurring, or is to

16  be taken, and is unable to conciliate, to be heard by a panel

17  of impartial persons. Upon hearing the complaint, the panel

18  shall make findings of fact and conclusions of law for a final

19  decision by the Department of Education.

20  

21  It shall be an affirmative defense to any action brought

22  pursuant to this section that the adverse action was

23  predicated upon grounds other than, and would have been taken

24  absent, the employee's exercise of rights protected by this

25  section.

26         (b)  In any action brought under this section for which

27  it is determined reasonable grounds exist to believe that an

28  unlawful reprisal has occurred, is occurring, or is to be

29  taken, the relief shall include the following:

30         1.  Reinstatement of the employee to the same position

31  held before the unlawful reprisal was commenced, or to an

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 1  equivalent position, or payment of reasonable front pay as

 2  alternative relief.

 3         2.  Reinstatement of the employee's full fringe

 4  benefits and seniority rights, as appropriate.

 5         3.  Compensation, if appropriate, for lost wages,

 6  benefits, or other lost remuneration caused by the unlawful

 7  reprisal.

 8         4.  Payment of reasonable costs, including attorney's

 9  fees, to a substantially prevailing employee, or to the

10  prevailing employer if the employee filed a frivolous action

11  in bad faith.

12         5.  Issuance of an injunction, if appropriate, by a

13  court of competent jurisdiction.

14         6.  Temporary reinstatement to the employee's former

15  position or to an equivalent position, pending the final

16  outcome of the complaint, if it is determined that the action

17  was not made in bad faith or for a wrongful purpose, and did

18  not occur after a district school board's initiation of a

19  personnel action against the employee that includes

20  documentation of the employee's violation of a disciplinary

21  standard or performance deficiency.

22         (5)  SPONSOR; DUTIES.--

23         (a)  Sponsoring entities.--

24         1.  A district school board may sponsor a charter

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

26  jurisdiction.

27         2.  A state university may grant a charter to a lab

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

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

30  charter lab school.

31         (b)  Sponsor duties.--

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 1         1.  The sponsor shall monitor and review the charter

 2  school in its progress toward the goals established in the

 3  charter.

 4         2.  The sponsor shall monitor the revenues and

 5  expenditures of the charter school.

 6         3.  The sponsor may approve a charter for a charter

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

 8  personnel, if the applicant indicates approval is necessary

 9  for it to raise working funds capital.

10         4.  The sponsor's policies shall not apply to a charter

11  school unless mutually agreed to by both the sponsor and the

12  charter school.

13         5.  The sponsor shall ensure that the charter is

14  innovative and consistent with the state education goals

15  established by s. 1000.03(5).

16         6.  The sponsor shall ensure that the charter school

17  participates in the state's education accountability system.

18  If a charter school falls short of performance measures

19  included in the approved charter, the sponsor shall report

20  such shortcomings to the Department of Education.

21         7.  The director and a representative of the governing

22  board of a charter school graded "D" or "F" shall appear

23  before the sponsor or the sponsor's staff at least once each

24  year to present information concerning each contract component

25  having noted deficiencies and to address corrective strategies

26  that are being implemented by the school. The sponsor shall

27  communicate at the meeting, and in writing to the school's

28  director and the Department of Education, the services being

29  provided to the school to help the school address its

30  deficiencies.

31  

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 1  A community college may work with the school district or

 2  school districts in its designated service area to develop

 3  charter schools that offer secondary education. These charter

 4  schools must include an option for students to receive an

 5  associate degree upon high school graduation. District school

 6  boards shall cooperate with and assist the community college

 7  on the charter application. Community college applications for

 8  charter schools are not subject to the time deadlines outlined

 9  in subsection (6) and may be approved by the district school

10  board at any time during the year. Community colleges shall

11  not report FTE for any students who receive FTE funding

12  through the Florida Education Finance Program.

13         (6)  APPLICATION PROCESS AND REVIEW.--Each application

14  for a charter school is Beginning September 1, 2003,

15  applications are subject to the following requirements:

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

17  school shall prepare an application that:

18         1.  Demonstrates how the school will use the guiding

19  principles and meet the statutorily defined purpose of a

20  charter school.

21         2.  Provides a detailed curriculum plan that

22  illustrates how students will be provided services to attain

23  the Sunshine State Standards.

24         3.  Contains goals and objectives for improving student

25  learning and measuring that improvement. These goals and

26  objectives must indicate how much academic improvement

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

28  evaluated, and the specific results to be attained through

29  instruction.

30         4.  Describes the reading curriculum and differentiated

31  strategies that will be used for students reading at grade

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 1  level or higher and a separate curriculum and strategies for

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

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

 4  curriculum that is consistent with effective teaching

 5  strategies that are grounded in scientifically based reading

 6  research.

 7         5.  Contains an annual financial plan for each year

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

 9  5 years. This plan must contain anticipated fund balances

10  based on revenue projections, a spending plan based on

11  projected revenues and expenses, and a description of controls

12  that will safeguard finances and projected enrollment trends.

13         (b)  A district school board shall receive and review

14  all applications for a charter school. Beginning with the

15  2007-2008 school year, a district school board shall receive

16  and consider charter school applications received on or before

17  August September 1 of each calendar year for charter schools

18  to be opened at the beginning of the school district's next

19  school year, or to be opened at a time agreed to by the

20  applicant and the district school board. A district school

21  board may receive applications later than this date if it

22  chooses. A sponsor may not charge an applicant for a charter

23  any fee for the processing or consideration of an application,

24  and a sponsor may not base its consideration or approval of an

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

26         1.  In order to facilitate an accurate budget

27  projection process, a district school board shall be held

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

29  projection due to approval of charter school applications

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

31  facilitate an accurate budget projection, within 15 calendar

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

 2  school board or other sponsor shall report to the Department

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

 4  charter school location, and its projected FTE.

 5         2.  In order to ensure fiscal responsibility, an

 6  application for a charter school shall include a full

 7  accounting of expected assets, a projection of expected

 8  sources and amounts of income, including income derived from

 9  projected student enrollments and from community support, and

10  an expense projection that includes full accounting of the

11  costs of operation, including start-up costs.

12         3.  A district school board shall by a majority vote

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

14  after the application is received, unless the district school

15  board and the applicant mutually agree in writing to

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

17  time the district school board shall by a majority vote

18  approve or deny the application. If the district school board

19  fails to act on the application, an applicant may appeal to

20  the State Board of Education as provided in paragraph (c). If

21  an application is denied, the district school board shall,

22  within 10 calendar days, articulate in writing the specific

23  reasons for based upon good cause supporting its denial of the

24  charter application and provide a letter of denial and

25  supporting documentation to the applicant and to the

26  Department of Education supporting those reasons.

27         4.  For budget projection purposes, the district school

28  board or other sponsor shall report to the Department of

29  Education the approval or denial of a charter application

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

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

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 1  shall include the final projected FTE for the approved charter

 2  school.

 3         5.  Upon approval of a charter application, the initial

 4  startup shall commence with the beginning of the public school

 5  calendar for the district in which the charter is granted

 6  unless the district school board allows a waiver of this

 7  provision for good cause.

 8         (c)  An applicant may appeal any denial of that

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

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

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

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

13  its appeal. Any response of the district school board shall be

14  submitted to the State Board of Education within 30 calendar

15  days after notification of the appeal. Upon receipt of

16  notification from the State Board of Education that a charter

17  school applicant is filing an appeal, the Commissioner of

18  Education shall convene a meeting of the Charter School Appeal

19  Commission to study and make recommendations to the State

20  Board of Education regarding its pending decision about the

21  appeal. The commission shall forward its recommendation to the

22  state board no later than 7 calendar days prior to the date on

23  which the appeal is to be heard. The State Board of Education

24  shall by majority vote accept or reject the decision of the

25  district school board no later than 90 calendar days after an

26  appeal is filed in accordance with State Board of Education

27  rule. The Charter School Appeal Commission may reject an

28  appeal submission for failure to comply with procedural rules

29  governing the appeals process. The rejection shall describe

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

31  calendar days from notice of rejection to resubmit an appeal

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

 2  application for appeal submitted subsequent to such rejection

 3  shall be considered timely if the original appeal was filed

 4  within 30 calendar days after receipt of notice of the

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

 6  charter application. The State Board of Education shall remand

 7  the application to the district school board with its written

 8  decision that the district school board approve or deny the

 9  application. The district school board shall implement the

10  decision of the State Board of Education. The decision of the

11  State Board of Education is not subject to the provisions of

12  the Administrative Procedure Act, chapter 120.

13         (d)  The district school board shall act upon the

14  decision of the State Board of Education within 30 calendar

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

16  decision is a final action subject to judicial review in the

17  district court of appeal.

18         (e)1.  A Charter School Appeal Commission is

19  established to assist the commissioner and the State Board of

20  Education with a fair and impartial review of appeals by

21  applicants whose charter applications have been denied, whose

22  charter contracts have not been renewed, or whose charter

23  contracts have been terminated by their sponsors, or whose

24  disputes over contract negotiations have not been resolved

25  through mediation.

26         2.  The Charter School Appeal Commission may receive

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

28  Education, review the documents, gather other applicable

29  information regarding the appeal, and make a written

30  recommendation to the commissioner. The recommendation must

31  state whether the appeal should be upheld or denied and

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 1  include the reasons for the recommendation being offered. The

 2  commissioner shall forward the recommendation to the State

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

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

 5  consider the commission's recommendation in making its

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

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

 8  provisions of the Administrative Procedure Act, chapter 120.

 9         3.  The commissioner shall appoint the members of the

10  Charter School Appeal Commission. Members shall serve without

11  compensation but may be reimbursed for travel and per diem

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

13  members must represent currently operating charter schools,

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

15  The commissioner or a named designee shall chair the Charter

16  School Appeal Commission.

17         4.  The chair shall convene meetings of the commission

18  and shall ensure that the written recommendations are

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

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

21  written recommendation with justification, noting that the

22  decision was rendered by the chair.

23         5.  Commission members shall thoroughly review the

24  materials presented to them from the appellant and the

25  sponsor. The commission may request information to clarify the

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

27  the commission may facilitate the postponement of an appeal in

28  those cases where additional time and communication may negate

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

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

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

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

 2  Education. Commission members shall provide a written

 3  recommendation to the state board as to whether the appeal

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

 5  recommendation must be included. The chair must ensure that

 6  the written recommendation is submitted to the State Board of

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

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

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

10         (f)  The Department of Education must offer or arrange

11  for training and technical assistance to each charter school

12  applicant in developing its business plan and estimating costs

13  and income. This assistance must address estimating start-up

14  costs, projecting enrollment, and identifying the types and

15  amounts of state and federal financial assistance the charter

16  school will be eligible to receive. The department of

17  Education may provide additional technical assistance to an

18  applicant upon written request.

19         (g)  In considering charter applications for a lab

20  school, a state university shall consult with the district

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

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

23  the procedure established in this subsection.

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

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

26  applicant in a written contractual agreement, called a

27  charter. The sponsor shall not impose unreasonable rules or

28  regulations that violate the intent of giving charter schools

29  greater flexibility to meet educational goals. The applicant

30  and sponsor shall have 3 6 months in which to mutually agree

31  to the provisions of the charter. The proposed charter must be

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 1  provided to the charter school at least 7 calendar days before

 2  the date on which the charter application is scheduled to be

 3  heard by the sponsor. The Department of Education shall

 4  provide mediation services for any dispute regarding this

 5  section subsequent to the approval of a charter application

 6  and for any dispute relating to the approved charter, except

 7  disputes regarding charter school application denials. If the

 8  Commissioner of Education determines that the dispute cannot

 9  be settled through mediation, the dispute may be appealed to

10  an administrative law judge appointed by the Division of

11  Administrative Hearings. The administrative law judge may rule

12  on issues of equitable treatment of the charter school as a

13  public school, whether proposed provisions of the charter

14  violate the intended flexibility granted charter schools by

15  statute, or on any other matter regarding this section, except

16  a charter school application denial, a charter termination, or

17  a charter nonrenewal, and shall award the prevailing party

18  reasonable attorney's fees and costs incurred to be paid by

19  the losing party. The costs of the administrative hearing

20  shall be paid by the party whom the administrative law judge

21  rules against.

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

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

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

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

26  hearing to ensure community input.

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

28  approval of the charter shall be based on:

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

30  and the ages and grades to be included.

31  

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 1         2.  The focus of the curriculum, the instructional

 2  methods to be used, any distinctive instructional techniques

 3  to be employed, and identification and acquisition of

 4  appropriate technologies needed to improve educational and

 5  administrative performance which include a means for promoting

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

 7  with legal and professional standards. The charter shall

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

 9  that resources are provided to identify and provide

10  specialized instruction for students who are reading below

11  grade level. The curriculum and instructional strategies for

12  reading must be consistent with the Sunshine State Standards

13  and grounded in scientifically based reading research.

14         3.  The current incoming baseline standard of student

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

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

17  in this subparagraph shall include a detailed description for

18  each of the following:

19         a.  How the baseline student academic achievement

20  levels and prior rates of academic progress will be

21  established.

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

23  of academic progress achieved by these same students while

24  attending the charter school.

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

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

27  closely comparable student populations.

28  

29  The district school board is required to provide academic

30  student performance data to charter schools for each of their

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

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 1  rates of academic progress of comparable student populations

 2  in the district school system.

 3         4.  The methods used to identify the educational

 4  strengths and needs of students and how well educational goals

 5  and performance standards are met by students attending the

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

 7  charter school to ensure accountability to its constituents by

 8  analyzing student performance data and by evaluating the

 9  effectiveness and efficiency of its major educational

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

11  participate in the statewide assessment program created under

12  s. 1008.22.

13         5.  In secondary charter schools, a method for

14  determining that a student has satisfied the requirements for

15  graduation in s. 1003.43.

16         6.  A method for resolving conflicts between the

17  governing body of the charter school and the sponsor.

18         7.  The admissions procedures and dismissal procedures,

19  including the school's code of student conduct.

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

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

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

23  same school district.

24         9.  The financial and administrative management of the

25  school, including a reasonable demonstration of the

26  professional experience or competence of those individuals or

27  organizations applying to operate the charter school or those

28  hired or retained to perform such professional services and

29  the description of clearly delineated responsibilities and the

30  policies and practices needed to effectively manage the

31  charter school. A description of internal audit procedures and

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 1  establishment of controls to ensure that financial resources

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

 3  private sector professional experience shall be equally valid

 4  in such a consideration.

 5         10.  The asset and liability projections required in

 6  the application which are incorporated into the charter and

 7  which shall be compared with information provided in the

 8  annual report of the charter school. The charter shall ensure

 9  that, if a charter school internal audit or annual financial

10  audit reveals a state of financial emergency as defined in s.

11  218.503 or a deficit financial position, the auditors are

12  required to notify the charter school governing board, the

13  sponsor, and the Department of Education. The internal auditor

14  shall report such findings in the form of an exit interview to

15  the principal or the principal administrator of the charter

16  school and the chair of the governing board within 7 working

17  days after finding the state of financial emergency or deficit

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

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

20  within 14 working days after the exit interview. When a

21  charter school is in a state of financial emergency, the

22  charter school must file a detailed financial-recovery plan

23  with the sponsor. The department shall establish guidelines,

24  with involvement from school districts and charter schools,

25  for developing such plans.

26         11.  A description of procedures that identify various

27  risks and provide for a comprehensive approach to reduce the

28  impact of losses; plans to ensure the safety and security of

29  students and staff; plans to identify, minimize, and protect

30  others from violent or disruptive student behavior; and the

31  manner in which the school will be insured, including whether

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 1  or not the school will be required to have liability

 2  insurance, and, if so, the terms and conditions thereof and

 3  the amounts of coverage.

 4         12.  The term of the charter which shall provide for

 5  cancellation of the charter if insufficient progress has been

 6  made in attaining the student achievement objectives of the

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

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

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

10  facilitate access to long-term financial resources for charter

11  school construction, charter schools that are operated by a

12  municipality or other public entity as provided by law are

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

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

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

16  facilitate access to long-term financial resources for charter

17  school construction, charter schools that are operated by a

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

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

20  approval by the district school board. Such long-term charters

21  remain subject to annual review and may be terminated during

22  the term of the charter, but only for specific good cause

23  according to the provisions set forth in subsection (8).

24         13.  The facilities to be used and their location.

25         14.  The qualifications to be required of the teachers

26  and the potential strategies used to recruit, hire, train, and

27  retain qualified staff to achieve best value.

28         15.  The governance structure of the school, including

29  the status of the charter school as a public or private

30  employer as required in paragraph (12)(i).

31  

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 1         16.  A timetable for implementing the charter which

 2  addresses the implementation of each element thereof and the

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

 4  this timetable.

 5         17.  In the case of an existing public school being

 6  converted to charter status, alternative arrangements for

 7  current students who choose not to attend the charter school

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

 9  charter school after conversion in accordance with the

10  existing collective bargaining agreement or district school

11  board rule in the absence of a collective bargaining

12  agreement. However, alternative arrangements shall not be

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

14  charter lab school, except as authorized by the employment

15  policies of the state university which grants the charter to

16  the lab school.

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

18  provided that a program review demonstrates that the criteria

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

20  none of the grounds for nonrenewal established by paragraph

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

22  financing for charter school construction, charter schools

23  operating for a minimum of 2 years and demonstrating exemplary

24  academic programming and fiscal management are eligible for a

25  15-year charter renewal. Such long-term charter is subject to

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

27  charter.

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

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

30  the charter school governing board and the approval of both

31  parties to the agreement.

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

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

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

 4  grounds:

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

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

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

 8  performance stated in the charter.

 9         2.  Failure to meet generally accepted standards of

10  fiscal management.

11         3.  Violation of law.

12         4.  A determination by the sponsor that the health,

13  safety, or welfare of the students is threatened Other good

14  cause shown.

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

16  terminate the charter for any of the grounds listed in

17  paragraph (a).

18         (c)  Unless the sponsor and charter school mutually

19  agree that the school will remain open during specified

20  corrective actions, the sponsor shall not renew the charter or

21  shall terminate the charter when the charter school receives a

22  school performance grade of "F" under s. 1008.34 for 2

23  consecutive years.

24         (d)(c)  At least 90 days prior to renewing or

25  terminating a charter, the sponsor shall notify the governing

26  body of the school of the proposed action in writing. The

27  notice shall state in reasonable detail the grounds for the

28  proposed action and stipulate that the school's governing body

29  may, within 14 calendar days after receiving the notice,

30  request an informal hearing before the sponsor. The sponsor

31  shall conduct the informal hearing within 30 calendar days

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 1  after receiving a written request. The charter school's

 2  governing body may, within 14 calendar days after receiving

 3  the sponsor's decision to terminate or refuse to renew the

 4  charter, appeal the decision pursuant to the procedure

 5  established in subsection (6).

 6         (e)(d)  A charter may be terminated immediately if the

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

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

 9  charter sponsor must notify, in writing, the charter school's

10  governing body, the charter school's principal, and the

11  department if a charter is immediately terminated. The sponsor

12  must clearly identify the specific issues that resulted in the

13  immediate termination and provide evidence that the charter

14  school received prior notification of issues resulting in the

15  immediate termination. The school district in which the

16  charter school is located shall assume operation of the school

17  under these circumstances. The charter school's governing

18  board may, within 14 days after receiving the sponsor's

19  decision to terminate the charter, appeal the decision

20  pursuant to the procedure established in subsection (6).

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

22  the school shall be dissolved under the provisions of law

23  under which the school was organized, and any unencumbered

24  public funds of the charter school, except for capital outlay

25  funds and federal charter school program grant funds, from the

26  charter school shall revert to the sponsor district school

27  board. Capital outlay funds provided pursuant to s. 1013.62

28  and federal charter school program grant funds that are

29  unencumbered shall revert to the department to be

30  redistributed among eligible charter schools. In the event a

31  charter school is dissolved or is otherwise terminated, all

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 1  district school board property and improvements, furnishings,

 2  and equipment purchased with public funds shall automatically

 3  revert to full ownership by the district school board, subject

 4  to complete satisfaction of any lawful liens or encumbrances.

 5  Any unencumbered public funds from the charter school,

 6  district school board property and improvements, furnishings,

 7  and equipment purchased with public funds, or financial or

 8  other records pertaining to the charter school, in the

 9  possession of any person, entity, or holding company, other

10  than the charter school, shall be held in trust upon the

11  district school board's request, until any appeal status is

12  resolved.

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

14  the charter school is responsible for all debts of the charter

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

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

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

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

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

20  assumed to have been satisfied by the district.

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

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

23  enrolled in, another public school. Normal application

24  deadlines shall be disregarded under such circumstances.

25         (9)  CHARTER SCHOOL REQUIREMENTS.--

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

27  programs, admission policies, employment practices, and

28  operations.

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

30  in subsection (10).

31  

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

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

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

 4  registration fees, except those fees normally charged by other

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

 6  student activity and service fee as authorized by s.

 7  1002.32(5).

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

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

10         (f)  A charter school shall not violate the

11  antidiscrimination provisions of s. 1000.05.

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

13  financial audit in accordance with s. 218.39. A financial

14  audit that is conducted by a certified public accountant or

15  auditor in accordance with s. 218.39 and that indicates a

16  state of financial emergency, as defined in s. 218.503, must

17  be provided to the governing body of the charter school within

18  7 working days after the finding that a state of financial

19  emergency exists. When a charter school is found to be in a

20  state of financial emergency by a certified public accountant

21  or auditor, the charter school must file a detailed

22  financial-recovery plan with the sponsor within 30 days after

23  receipt of the audit.

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

25  statewide.

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

27  comparable to that reported for other public schools, charter

28  schools are to maintain all financial records which constitute

29  their accounting system:

30         1.  In accordance with the accounts and codes

31  prescribed in the most recent issuance of the publication

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 1  titled "Financial and Program Cost Accounting and Reporting

 2  for Florida Schools"; or

 3         2.  At the discretion of the charter school governing

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

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

 6  must reformat this information for reporting according to this

 7  paragraph.

 8  

 9  Charter schools shall are to provide annual financial report

10  and program cost report information in the state-required

11  formats for inclusion in district reporting in compliance with

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

13  municipality or are a component unit of a parent nonprofit

14  organization may use the accounting system of the municipality

15  or the parent but must reformat this information for reporting

16  according to this paragraph.

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

18  annually adopt and maintain an operating budget.

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

20  exercise continuing oversight over charter school operations.

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

22  report its progress annually to its sponsor, which shall

23  forward the report to the Commissioner of Education at the

24  same time as other annual school accountability reports. The

25  Department of Education shall develop a uniform, on-line

26  annual accountability report that must be completed by each

27  charter school. This report must be easy to use and provide

28  for reporting demographic information, student performance

29  data, and financial accountability information. A charter

30  school may not be required to provide information and data

31  that is duplicative and already in the possession of the

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 1  Department of Education. The Department of Education shall

 2  include in its compilation a notation if a school failed to

 3  file its report by the deadline established by the department.

 4  The report shall include at least the following components:

 5         1.  Student achievement performance data, including the

 6  information required for the annual school report and the

 7  education accountability system governed by ss. 1008.31 and

 8  1008.345. Charter schools are subject to the same

 9  accountability requirements as other public schools, including

10  reports of student achievement information that links baseline

11  student data to the school's performance projections

12  identified in the charter. The charter school shall identify

13  reasons for any difference between projected and actual

14  student performance.

15         2.  Financial status of the charter school which must

16  include revenues and expenditures at a level of detail that

17  allows for analysis of the ability to meet financial

18  obligations and timely repayment of debt.

19         3.  Documentation of the facilities in current use and

20  any planned facilities for use by the charter school for

21  instruction of students, administrative functions, or

22  investment purposes.

23         4.  Descriptive information about the charter school's

24  personnel, including salary and benefit levels of charter

25  school employees, the proportion of instructional personnel

26  who hold professional or temporary certificates, and the

27  proportion of instructional personnel teaching in-field or

28  out-of-field.

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

30  bonds secured by tax revenues.

31  

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 1         (n)  A charter school shall provide instruction for at

 2  least the number of days required by law for other public

 3  schools, and may provide instruction for additional days.

 4         (10)  ELIGIBLE STUDENTS.--

 5         (a)  A charter school shall be open to any student

 6  covered in an interdistrict agreement or residing in the

 7  school district in which the charter school is located;

 8  however, in the case of a charter lab school, the charter lab

 9  school shall be open to any student eligible to attend the lab

10  school as provided in s. 1002.32 or who resides in the school

11  district in which the charter lab school is located. Any

12  eligible student shall be allowed interdistrict transfer to

13  attend a charter school when based on good cause.

14         (b)  The charter school shall enroll an eligible

15  student who submits a timely application, unless the number of

16  applications exceeds the capacity of a program, class, grade

17  level, or building. In such case, all applicants shall have an

18  equal chance of being admitted through a random selection

19  process.

20         (c)  When a public school converts to charter status,

21  enrollment preference shall be given to students who would

22  have otherwise attended that public school.

23         (d)  A charter school may give enrollment preference to

24  the following student populations:

25         1.  Students who are siblings of a student enrolled in

26  the charter school.

27         2.  Students who are the children of a member of the

28  governing board of the charter school.

29         3.  Students who are the children of an employee of the

30  charter school.

31  

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 1         (e)  A charter school may limit the enrollment process

 2  only to target the following student populations:

 3         1.  Students within specific age groups or grade

 4  levels.

 5         2.  Students considered at risk of dropping out of

 6  school or academic failure. Such students shall include

 7  exceptional education students.

 8         3.  Students enrolling in a charter

 9  school-in-the-workplace or charter school-in-a-municipality

10  established pursuant to subsection (15).

11         4.  Students residing within a reasonable distance of

12  the charter school, as described in paragraph (20)(c). Such

13  students shall be subject to a random lottery and to the

14  racial/ethnic balance provisions described in subparagraph

15  (7)(a)8. or any federal provisions that require a school to

16  achieve a racial/ethnic balance reflective of the community it

17  serves or within the racial/ethnic range of other public

18  schools in the same school district.

19         5.  Students who meet reasonable academic, artistic, or

20  other eligibility standards established by the charter school

21  and included in the charter school application and charter or,

22  in the case of existing charter schools, standards that are

23  consistent with the school's mission and purpose. Such

24  standards shall be in accordance with current state law and

25  practice in public schools and may not discriminate against

26  otherwise qualified individuals.

27         6.  Students articulating from one charter school to

28  another pursuant to an articulation agreement between the

29  charter schools that has been approved by the sponsor.

30         (f)  Students with handicapping conditions and students

31  served in English for Speakers of Other Languages programs

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 1  shall have an equal opportunity of being selected for

 2  enrollment in a charter school.

 3         (g)  A student may withdraw from a charter school at

 4  any time and enroll in another public school as determined by

 5  district school board rule.

 6         (h)  The capacity of the charter school shall be

 7  determined annually by the governing board, in conjunction

 8  with the sponsor, of the charter school in consideration of

 9  the factors identified in this subsection.

10         (11)  PARTICIPATION IN INTERSCHOLASTIC EXTRACURRICULAR

11  ACTIVITIES.--A charter school student is eligible to

12  participate in an interscholastic extracurricular activity at

13  the public school to which the student would be otherwise

14  assigned to attend pursuant to s. 1006.15(3)(d).

15         (12)  EMPLOYEES OF CHARTER SCHOOLS.--

16         (a)  A charter school shall select its own employees. A

17  charter school may contract with its sponsor for the services

18  of personnel employed by the sponsor.

19         (b)  Charter school employees shall have the option to

20  bargain collectively. Employees may collectively bargain as a

21  separate unit or as part of the existing district collective

22  bargaining unit as determined by the structure of the charter

23  school.

24         (c)  The employees of a conversion charter school shall

25  remain public employees for all purposes, unless such

26  employees choose not to do so.

27         (d)  The teachers at a charter school may choose to be

28  part of a professional group that subcontracts with the

29  charter school to operate the instructional program under the

30  auspices of a partnership or cooperative that they

31  

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 1  collectively own. Under this arrangement, the teachers would

 2  not be public employees.

 3         (e)  Employees of a school district may take leave to

 4  accept employment in a charter school upon the approval of the

 5  district school board. While employed by the charter school

 6  and on leave that is approved by the district school board,

 7  the employee may retain seniority accrued in that school

 8  district and may continue to be covered by the benefit

 9  programs of that school district, if the charter school and

10  the district school board agree to this arrangement and its

11  financing. School districts shall not require resignations of

12  teachers desiring to teach in a charter school. This paragraph

13  shall not prohibit a district school board from approving

14  alternative leave arrangements consistent with chapter 1012.

15         (f)  Teachers employed by or under contract to a

16  charter school shall be certified as required by chapter 1012.

17  A charter school governing board may employ or contract with

18  skilled selected noncertified personnel to provide

19  instructional services or to assist instructional staff

20  members as education paraprofessionals in the same manner as

21  defined in chapter 1012, and as provided by State Board of

22  Education rule for charter school governing boards. A charter

23  school may not knowingly employ an individual to provide

24  instructional services or to serve as an education

25  paraprofessional if the individual's certification or

26  licensure as an educator is suspended or revoked by this or

27  any other state. A charter school may not knowingly employ an

28  individual who has resigned from a school district in lieu of

29  disciplinary action with respect to child welfare or safety,

30  or who has been dismissed for just cause by any school

31  

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 1  district with respect to child welfare or safety. The

 2  qualifications of teachers shall be disclosed to parents.

 3         (g)  A charter school shall employ or contract with

 4  employees who have undergone background screening as provided

 5  in s. 1012.32. Members of the governing board of the charter

 6  school shall also undergo background screening in a manner

 7  similar to that provided in s. 1012.32.

 8         (h)  For the purposes of tort liability, the governing

 9  body and employees of a charter school shall be governed by s.

10  768.28.

11         (i)  A charter school shall organize as, or be operated

12  by, a nonprofit organization. A charter school may be operated

13  by a municipality or other public entity as provided for by

14  law. As such, the charter school may be either a private or a

15  public employer.  As a public employer, a charter school may

16  participate in the Florida Retirement System upon application

17  and approval as a "covered group" under s. 121.021(34). If a

18  charter school participates in the Florida Retirement System,

19  the charter school employees shall be compulsory members of

20  the Florida Retirement System. As either a private or a public

21  employer, a charter school may contract for services with an

22  individual or group of individuals who are organized as a

23  partnership or a cooperative. Individuals or groups of

24  individuals who contract their services to the charter school

25  are not public employees.

26         (13)  CHARTER SCHOOL COOPERATIVES.--Charter schools may

27  enter into cooperative agreements to form charter school

28  cooperative organizations that may provide the following

29  services: charter school planning and development, direct

30  instructional services, and contracts with charter school

31  governing boards to provide personnel administrative services,

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 1  payroll services, human resource management, evaluation and

 2  assessment services, teacher preparation, and professional

 3  development.

 4         (14)  CHARTER SCHOOL FINANCIAL ARRANGEMENTS;

 5  INDEMNIFICATION OF THE STATE AND SCHOOL DISTRICT; CREDIT OR

 6  TAXING POWER NOT TO BE PLEDGED.--Any arrangement entered into

 7  to borrow or otherwise secure funds for a charter school

 8  authorized in this section from a source other than the state

 9  or a school district shall indemnify the state and the school

10  district from any and all liability, including, but not

11  limited to, financial responsibility for the payment of the

12  principal or interest. Any loans, bonds, or other financial

13  agreements are not obligations of the state or the school

14  district but are obligations of the charter school authority

15  and are payable solely from the sources of funds pledged by

16  such agreement. The credit or taxing power of the state or the

17  school district shall not be pledged and no debts shall be

18  payable out of any moneys except those of the legal entity in

19  possession of a valid charter approved by a district school

20  board pursuant to this section.

21         (15)  CHARTER SCHOOLS-IN-THE-WORKPLACE; CHARTER

22  SCHOOLS-IN-A-MUNICIPALITY.--

23         (a)  In order to increase business partnerships in

24  education, to reduce school and classroom overcrowding

25  throughout the state, and to offset the high costs for

26  educational facilities construction, the Legislature intends

27  to encourage the formation of business partnership schools or

28  satellite learning centers and municipal-operated schools

29  through charter school status.

30         (b)  A charter school-in-the-workplace may be

31  established when a business partner provides the school

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 1  facility to be used; enrolls students based upon a random

 2  lottery that involves all of the children of employees of that

 3  business or corporation who are seeking enrollment, as

 4  provided for in subsection (10); and enrolls students

 5  according to the racial/ethnic balance provisions described in

 6  subparagraph (7)(a)8. Any portion of a facility used for a

 7  public charter school shall be exempt from ad valorem taxes,

 8  as provided for in s. 1013.54, for the duration of its use as

 9  a public school.

10         (c)  A charter school-in-a-municipality designation may

11  be granted to a municipality that possesses a charter; enrolls

12  students based upon a random lottery that involves all of the

13  children of the residents of that municipality who are seeking

14  enrollment, as provided for in subsection (10); and enrolls

15  students according to the racial/ethnic balance provisions

16  described in subparagraph (7)(a)8. When a municipality has

17  submitted charter applications for the establishment of a

18  charter school feeder pattern, consisting of elementary,

19  middle, and senior high schools, and each individual charter

20  application is approved by the district school board, such

21  schools shall then be designated as one charter school for all

22  purposes listed pursuant to this section. Any portion of the

23  land and facility used for a public charter school shall be

24  exempt from ad valorem taxes, as provided for in s. 1013.54,

25  for the duration of its use as a public school.

26         (d)  As used in this subsection, the terms "business

27  partner" or "municipality" may include more than one business

28  or municipality to form a charter school-in-the-workplace or

29  charter school-in-a-municipality.

30         (16)  EXEMPTION FROM STATUTES.--

31  

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 1         (a)  A charter school shall operate in accordance with

 2  its charter and shall be exempt from all statutes in chapters

 3  1000-1013. However, a charter school shall be in compliance

 4  with the following statutes in chapters 1000-1013:

 5         1.  Those statutes specifically applying to charter

 6  schools, including this section.

 7         2.  Those statutes pertaining to the student assessment

 8  program and school grading system.

 9         3.  Those statutes pertaining to the provision of

10  services to students with disabilities.

11         4.  Those statutes pertaining to civil rights,

12  including s. 1000.05, relating to discrimination.

13         5.  Those statutes pertaining to student health,

14  safety, and welfare.

15         (b)  Additionally, a charter school shall be in

16  compliance with the following statutes:

17         1.  Section 286.011, relating to public meetings and

18  records, public inspection, and criminal and civil penalties.

19         2.  Chapter 119, relating to public records.

20         (17)  FUNDING.--Students enrolled in a charter school,

21  regardless of the sponsorship, shall be funded as if they are

22  in a basic program or a special program, the same as students

23  enrolled in other public schools in the school district.

24  Funding for a charter lab school shall be as provided in s.

25  1002.32.

26         (a)  Each charter school shall report its student

27  enrollment to the district school board as required in s.

28  1011.62, and in accordance with the definitions in s. 1011.61.

29  The district school board shall include each charter school's

30  enrollment in the district's report of student enrollment. All

31  charter schools submitting student record information required

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 1  by the Department of Education shall comply with the

 2  Department of Education's guidelines for electronic data

 3  formats for such data, and all districts shall accept

 4  electronic data that complies with the Department of

 5  Education's electronic format.

 6         (b)  The basis for the agreement for funding students

 7  enrolled in a charter school shall be the sum of the school

 8  district's operating funds from the Florida Education Finance

 9  Program as provided in s. 1011.62 and the General

10  Appropriations Act, including gross state and local funds,

11  discretionary lottery funds, and funds from the school

12  district's current operating discretionary millage levy;

13  divided by total funded weighted full-time equivalent students

14  in the school district; multiplied by the weighted full-time

15  equivalent students for the charter school. Charter schools

16  whose students or programs meet the eligibility criteria in

17  law shall be entitled to their proportionate share of

18  categorical program funds included in the total funds

19  available in the Florida Education Finance Program by the

20  Legislature, including transportation. Total funding for each

21  charter school shall be recalculated during the year to

22  reflect the revised calculations under the Florida Education

23  Finance Program by the state and the actual weighted full-time

24  equivalent students reported by the charter school during the

25  full-time equivalent student survey periods designated by the

26  Commissioner of Education.

27         (c)  If the district school board is providing programs

28  or services to students funded by federal funds, any eligible

29  students enrolled in charter schools in the school district

30  shall be provided federal funds for the same level of service

31  provided students in the schools operated by the district

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 1  school board. Pursuant to provisions of 20 U.S.C. 8061 s.

 2  10306, all charter schools shall receive all federal funding

 3  for which the school is otherwise eligible, including Title I

 4  funding, not later than 5 months after the charter school

 5  first opens and within 5 months after any subsequent expansion

 6  of enrollment.

 7         (d)  District school boards shall make every effort to

 8  ensure that charter schools receive timely and efficient

 9  reimbursement, including processing paperwork required to

10  access special state and federal funding for which they may be

11  eligible. The district school board may distribute funds to a

12  charter school for up to 3 months based on the projected

13  full-time equivalent student membership of the charter school.

14  Thereafter, the results of full-time equivalent student

15  membership surveys shall be used in adjusting the amount of

16  funds distributed monthly to the charter school for the

17  remainder of the fiscal year. The payment shall be issued no

18  later than 10 working days after the district school board

19  receives a distribution of state or federal funds. If a

20  warrant for payment is not issued within 30 working days after

21  receipt of funding by the district school board, the school

22  district shall pay to the charter school, in addition to the

23  amount of the scheduled disbursement, interest at a rate of 1

24  percent per month calculated on a daily basis on the unpaid

25  balance from the expiration of the 30-day period until such

26  time as the warrant is issued.

27         (18)  FACILITIES.--

28         (a)  A startup charter school shall utilize facilities

29  that which comply with the Florida Building Code pursuant to

30  chapter 553 except for the State Requirements for Educational

31  Facilities. Charter schools are not required to comply, but

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 1  may choose to comply, with the State Requirements for

 2  Educational Facilities of the Florida Building Code adopted

 3  pursuant to s. 1013.37. The local governing authority shall

 4  not adopt or impose local building requirements or

 5  restrictions that are more stringent than those found in the

 6  Florida Building Code. The agency having jurisdiction for

 7  inspection of a facility and issuance of a certificate of

 8  occupancy shall be the local municipality or, if in an

 9  unincorporated area, the county governing authority.

10         (b)  A charter school shall utilize facilities that

11  comply with the Florida Fire Prevention Code, pursuant to s.

12  633.025, as adopted by the authority in whose jurisdiction the

13  facility is located as provided in paragraph (a).

14         (c)  Any facility, or portion thereof, used to house a

15  charter school whose charter has been approved by the sponsor

16  and the governing board, pursuant to subsection (7), shall be

17  exempt from ad valorem taxes pursuant to s. 196.1983. A

18  library, community service facility, museum, performing arts

19  facility, theatre, cinema, church, community college, college,

20  or university may provide space to a charter school within its

21  facilities and under its existing zoning and land use

22  designations.

23         (d)  Charter school facilities are exempt from

24  assessments of fees for building permits, except as provided

25  in s. 553.80, fees and for building and occupational licenses,

26  and from assessments of impact fees or service availability

27  fees.

28         (e)  If a district school board facility or property is

29  available because it is surplus, marked for disposal, or

30  otherwise unused, it shall be provided for a charter school's

31  use on the same basis as it is made available to other public

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 1  schools in the district. A charter school receiving property

 2  from the school district may not sell or dispose of such

 3  property without written permission of the school district.

 4  Similarly, for an existing public school converting to charter

 5  status, no rental or leasing fee for the existing facility or

 6  for the property normally inventoried to the conversion school

 7  may be charged by the district school board to the parents and

 8  teachers organizing the charter school. The charter school

 9  organizers shall agree to reasonable maintenance provisions in

10  order to maintain the facility in a manner similar to district

11  school board standards. The Public Education Capital Outlay

12  maintenance funds or any other maintenance funds generated by

13  the facility operated as a conversion school shall remain with

14  the conversion school.

15         (f)  To the extent that charter school facilities are

16  specifically created to mitigate the educational impact

17  created by the development of new residential dwelling units,

18  pursuant to subparagraph (2)(c)4., some of or all of the

19  educational impact fees required to be paid in connection with

20  the new residential dwelling units may be designated instead

21  for the construction of the charter school facilities that

22  will mitigate the student station impact. Such facilities

23  shall be built to the State Requirements for Educational

24  Facilities and shall be owned by a public or nonprofit entity.

25  The local school district retains the right to monitor and

26  inspect such facilities to ensure compliance with the State

27  Requirements for Educational Facilities. If a facility ceases

28  to be used for public educational purposes, either the

29  facility shall revert to the school district subject to any

30  debt owed on the facility, or the owner of the facility shall

31  have the option to refund all educational impact fees utilized

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 1  for the facility to the school district. The district and the

 2  owner of the facility may contractually agree to another

 3  arrangement for the facilities if the facilities cease to be

 4  used for educational purposes. The owner of property planned

 5  or approved for new residential dwelling units and the entity

 6  levying educational impact fees shall enter into an agreement

 7  that designates the educational impact fees that will be

 8  allocated for the charter school student stations and that

 9  ensures the timely construction of the charter school student

10  stations concurrent with the expected occupancy of the

11  residential units. The application for use of educational

12  impact fees shall include an approved charter school

13  application. To assist the school district in forecasting

14  student station needs, the entity levying the impact fees

15  shall notify the affected district of any agreements it has

16  approved for the purpose of mitigating student station impact

17  from the new residential dwelling units.

18         (19)  CAPITAL OUTLAY FUNDING.--Charter schools are

19  eligible for capital outlay funds pursuant to s. 1013.62.

20         (20)  SERVICES.--

21         (a)  A sponsor shall provide certain administrative and

22  educational services to charter schools. These services shall

23  include contract management services; full-time equivalent and

24  data reporting services; exceptional student education

25  administration and evaluation services; such services as are

26  required to fulfill eligibility and reporting requirements to

27  ensure school lunch services under the federal lunch program,

28  consistent with the needs of the charter school and provided

29  by the school district at the request of the charter school;

30  test administration services, including payment of the costs

31  of state-required or district-required student assessments;

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 1  processing of teacher certificate data services; and

 2  information services, including equal access to student

 3  information systems that are used by public schools in the

 4  district in which the charter school is located. A total

 5  administrative fee for the provision of such services shall be

 6  calculated based upon up to 5 percent of the available funds

 7  defined in paragraph (17)(b) for all students. However, a

 8  sponsor may only withhold up to a 5-percent administrative fee

 9  for enrollment for up to and including 500 students. For

10  charter schools with a population of 501 or more students, the

11  difference between the total administrative fee calculation

12  and the amount of the administrative fee withheld may only be

13  used for capital outlay purposes specified in s. 1013.62(4) s.

14  1013.62(2). Sponsors shall not charge charter schools any

15  additional fees or surcharges for administrative and

16  educational services in addition to the maximum 5-percent

17  administrative fee withheld pursuant to this paragraph.

18         (b)  If goods and services are made available to the

19  charter school through the contract with the school district,

20  they shall be provided to the charter school at a rate no

21  greater than the district's actual cost unless mutually agreed

22  upon by the charter school and the sponsor in a contract

23  negotiated separately from the charter. When mediation has

24  failed to resolve disputes over contracted services or

25  contractual matters not included in the charter, an appeal may

26  be made for a dispute resolution hearing before the Charter

27  School Appeal Commission. To maximize the use of state funds,

28  school districts shall allow charter schools to participate in

29  the sponsor's bulk purchasing program if applicable.

30         (c)  Transportation of charter school students shall be

31  provided by the charter school consistent with the

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 1  requirements of subpart I.E. of chapter 1006 and s. 1012.45.

 2  The governing body of the charter school may provide

 3  transportation through an agreement or contract with the

 4  district school board, a private provider, or parents. The

 5  charter school and the sponsor shall cooperate in making

 6  arrangements that ensure that transportation is not a barrier

 7  to equal access for all students residing within a reasonable

 8  distance of the charter school as determined in its charter.

 9         (21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--The

10  Department of Education shall provide information to the

11  public, directly and through sponsors, both on how to form and

12  operate a charter school and on how to enroll in charter

13  schools once they are created. This information shall include

14  a standard application format, charter format, and charter

15  renewal format, which shall include the information specified

16  in subsection (7). These formats shall This application format

17  may be used by charter school sponsors chartering entities.

18         (22)  CHARTER SCHOOL REVIEW PANEL AND LEGISLATIVE

19  REVIEW.--

20         (a)  The Department of Education shall provide the

21  staff for and regularly convene a Charter School Review Panel

22  in order to review issues, practices, and policies regarding

23  charter schools. The composition of the review panel shall

24  include individuals with experience in finance,

25  administration, law, education, and school governance, and

26  individuals familiar with charter school construction and

27  operation. The panel shall include two appointees each from

28  the Commissioner of Education, the President of the Senate,

29  and the Speaker of the House of Representatives. The Governor

30  shall appoint three members of the panel and shall designate

31  the chair. Each member of the panel shall serve a 1-year term,

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 1  unless renewed by the office making the appointment. The panel

 2  shall make recommendations to the Legislature, to the

 3  Department of Education, to charter schools, and to school

 4  districts for improving charter school operations and

 5  oversight and for ensuring best business practices at and fair

 6  business relationships with charter schools.

 7         (b)  The Legislature shall review the operation of

 8  charter schools during the 2010 2005 Regular Session of the

 9  Legislature.

10         (23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon

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

12  Department of Education shall provide to the State Board of

13  Education, the Commissioner of Education, the Governor, the

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

15  Representatives an analysis and comparison of the overall

16  performance of charter school students, to include all

17  students whose scores are counted as part of the statewide

18  assessment program, versus comparable public school students

19  in the district as determined by the statewide assessment

20  program currently administered in the school district, and

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

22         (24)  RULEMAKING.--The Department of Education, after

23  consultation with school districts and charter school

24  directors, shall recommend that the State Board of Education

25  adopt rules to implement specific subsections of this section.

26  Such rules shall require minimum paperwork and shall not limit

27  charter school flexibility authorized by statute.

28         Section 2.  Subsection (3) of section 1003.05, Florida

29  Statutes, is amended to read:

30         1003.05  Assistance to transitioning students from

31  military families.--

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 1         (3)  Dependent children of active duty military

 2  personnel who otherwise meet the eligibility criteria for

 3  special academic programs offered through public schools shall

 4  be given first preference for admission to such programs even

 5  if the program is being offered through a public school other

 6  than the school to which the student would generally be

 7  assigned and the school at which the program is being offered

 8  has reached its maximum enrollment. If such a program is

 9  offered through a public school other than the school to which

10  the student would generally be assigned, the parent or

11  guardian of the student must assume responsibility for

12  transporting the student to that school. For purposes of this

13  subsection, special academic programs include charter schools,

14  magnet schools, advanced studies programs, advanced placement,

15  dual enrollment, and International Baccalaureate.

16         Section 3.  Section 1013.62, Florida Statutes, is

17  amended to read:

18         1013.62  Charter schools capital outlay funding.--

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

20  charter school capital outlay purposes, the Commissioner of

21  Education shall allocate the funds among eligible charter

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

23  school must be one of the following:

24         (a)  The same school that received capital outlay

25  funding in 2002-2003.

26         (b)  A charter school that is an expanded feeder

27  pattern of a charter school that received capital outlay

28  funding in 2002-2003.

29         (2)  If an appropriation for charter school capital

30  outlay funds is less than the 2002-2003 appropriation, the

31  

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 1  funds shall be prorated among schools eligible pursuant to

 2  subsection (1).

 3         (3)  If an appropriation for charter school capital

 4  outlay funds is greater than the 2002-2003 appropriation, the

 5  funds shall be allocated to schools eligible pursuant to

 6  subsection (1) and to charter schools that:

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

 8         2.  Are Be an expanded feeder chain of a charter school

 9  within the same school district that is currently receiving

10  charter school capital outlay funds; or

11         3.  Have been accredited by the Commission on Schools

12  of the Southern Association of Colleges and Schools.

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

14  charter school.

15         (c)  Have satisfactory student achievement based on

16  state accountability standards applicable to the charter

17  school.

18         (d)  Have received final approval from its sponsor

19  pursuant to s. 1002.33 for operation during that fiscal year.

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

21  by the charter school's sponsor. First priority for allocating

22  the amount in excess of the 2002-2003 appropriation shall be

23  to prorate the excess funds among charter schools having

24  long-term debt or a long-term lease, to the extent that the

25  initial allocation is insufficient to provide one-fifteenth of

26  the cost-per-student station specified in s. 1013.64(6)(b),

27  and second priority shall be to other eligible charter

28  schools.

29  

30  Prior to the release of capital outlay funds to a school

31  district on behalf of the charter school, the Department of

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 1  Education shall ensure that the district school board and the

 2  charter school governing board enter into a written agreement

 3  that includes provisions for the reversion of any unencumbered

 4  funds and all equipment and property purchased with public

 5  education funds to the ownership of the district school board,

 6  as provided for in subsection (5) (3), in the event that the

 7  school terminates operations. Any funds recovered by the state

 8  shall be deposited in the General Revenue Fund. A charter

 9  school is not eligible for a funding allocation if it was

10  created by the conversion of a public school and operates in

11  facilities provided by the charter school's sponsor for a

12  nominal fee or at no charge or if it is directly or indirectly

13  operated by the school district. Unless otherwise provided in

14  the General Appropriations Act, the funding allocation for

15  each eligible charter school shall be determined by

16  multiplying the school's projected student enrollment by

17  one-fifteenth of the cost-per-student station specified in s.

18  1013.64(6)(b) for an elementary, middle, or high school, as

19  appropriate. If the funds appropriated are not sufficient, the

20  commissioner shall prorate the available funds among eligible

21  charter schools. However, no charter school or charter lab

22  school shall receive state charter school capital outlay funds

23  in excess of the one-fifteenth cost per student station

24  formula if the charter school's combination of state charter

25  school capital outlay funds, capital outlay funds calculated

26  through the reduction in the administrative fee provided in s.

27  1002.33(20), and capital outlay funds allowed in s.

28  1002.32(9)(e) and (h) exceeds the one-fifteenth cost per

29  student station formula. Funds shall be distributed on the

30  basis of the capital outlay full-time equivalent membership by

31  grade level, which shall be calculated by averaging the

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 1  results of the second and third enrollment surveys. The

 2  Department of Education shall distribute capital outlay funds

 3  monthly, beginning in the first quarter of the fiscal year,

 4  based on one-twelfth of the amount the department reasonably

 5  expects the charter school to receive during that fiscal year.

 6  The commissioner shall adjust subsequent distributions as

 7  necessary to reflect each charter school's actual student

 8  enrollment as reflected in the second and third enrollment

 9  surveys. The commissioner shall establish the intervals and

10  procedures for determining the projected and actual student

11  enrollment of eligible charter schools.

12         (4)(2)  A charter school's governing body may use

13  charter school capital outlay funds for the following

14  purposes:

15         (a)  Purchase of real property.

16         (b)  Construction of school facilities.

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

18  relocatable school facilities.

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

20  from the charter school.

21         (e)  Renovation, repair, furnishing, equipping, and

22  maintenance of school facilities that the charter school owns

23  or is purchasing through a lease-purchase or long-term lease

24  of 5 years or longer.

25  

26  Conversion charter schools may use capital outlay funds

27  received through the reduction in the administrative fee

28  provided in s. 1002.33(20) for renovation, repair, and

29  maintenance of school facilities that are owned by the

30  sponsor.

31  

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 1         (5)(3)  When a charter school is nonrenewed or

 2  terminated, any unencumbered funds and all equipment and

 3  property purchased with district public funds shall revert to

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

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

 6  any unencumbered funds and all equipment and property

 7  purchased with university public funds shall revert to the

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

 9  reversion of such equipment, property, and furnishings shall

10  focus on recoverable assets, but not on intangible or

11  irrecoverable costs such as rental or leasing fees, normal

12  maintenance, and limited renovations. The reversion of all

13  property secured with public funds is subject to the complete

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

15  additional local issues such as the shared use of facilities

16  or partial ownership of facilities or property, these issues

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

18  expenditure of funds.

19         (6)(4)  The Commissioner of Education shall specify

20  procedures for submitting and approving requests for funding

21  under this section and procedures for documenting

22  expenditures.

23         (7)(5)  The annual legislative budget request of the

24  Department of Education shall include a request for capital

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

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

27  schools who meet the eligibility requirements of this section.

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

29  Commissioner of Education and submitted along with the annual

30  charter school legislative budget request, may be considered

31  an additional source of funding.

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 1         (8)(6)  Unless authorized otherwise by the Legislature,

 2  allocation and proration of charter school capital outlay

 3  funds shall be made to eligible charter schools by the

 4  Commissioner of Education in an amount and in a manner

 5  authorized by subsections (2) and (3) subsection (1).

 6         (7)  Notwithstanding the provisions of this section,

 7  beginning in the 2003-2004 fiscal year:

 8         (a)  If the appropriation for charter school capital

 9  outlay funds is no greater than the 2002-2003 appropriation,

10  the funds shall be allocated according to the formula outlined

11  in subsection (1) to:

12         1.  The same schools that received funding in

13  2002-2003.

14         2.  Schools that are an expanded feeder pattern of

15  schools that received funding in 2002-2003.

16         3.  Schools that have an approved charter and are

17  serving students at the start of the 2003-2004 school year and

18  either incurred long-term financial obligations prior to

19  January 31, 2003, or began construction on educational

20  facilities prior to December 31, 2002.

21         (b)  If the appropriation for charter school capital

22  outlay funds is less than the 2002-2003 appropriation, the

23  funds shall be prorated among the schools eligible in

24  paragraph (a).

25         (c)  If the appropriation for charter school capital

26  outlay funds is greater than the 2002-2003 appropriation, the

27  amount of funds provided in the 2002-2003 appropriation shall

28  be allocated according to paragraph (a). First priority for

29  allocating the amount in excess of the 2002-2003 appropriation

30  shall be to prorate the excess funds among the charter schools

31  with long-term debt or long-term lease to the extent that the

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 1  initial allocation is insufficient to provide one-fifteenth of

 2  the cost per student station specified in s. 1013.64(6)(b),

 3  and second priority shall be to other eligible charter

 4  schools.

 5         Section 4.  Subsection (5) of section 218.39, Florida

 6  Statutes, is amended to read:

 7         218.39  Annual financial audit reports.--

 8         (5)  At the conclusion of the audit, the auditor shall

 9  discuss with the chair of each local governmental entity or

10  the chair's designee, or with the elected official of each

11  county agency or with the elected official's designee, or with

12  the chair of the district school board or the chair's

13  designee, or with the chair of the board of the charter school

14  or the chair's designee, or with the chair of the charter

15  technical career center or the chair's designee, as

16  appropriate, all of the auditor's comments that will be

17  included in the audit report.  If the officer is not available

18  to discuss the auditor's comments, their discussion is

19  presumed when the comments are delivered in writing to his or

20  her office. The auditor shall notify each member of the

21  governing body of a local governmental entity, or district

22  school board, or charter school for which deteriorating

23  financial conditions exist that may cause a condition

24  described in s. 218.503(1) to occur if actions are not taken

25  to address such conditions.

26         Section 5.  Section 218.50, Florida Statutes, is

27  amended to read:

28         218.50  Short title.--Sections 218.50-218.504 may be

29  cited as the "Local Governmental Entity, Charter School, and

30  District School Board Financial Emergencies Act."

31  

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 1         Section 6.  Section 218.501, Florida Statutes, is

 2  amended to read:

 3         218.501  Purposes.--The purposes of ss. 218.50-218.504

 4  are:

 5         (1)  To promote the fiscal responsibility of local

 6  governmental entities, charter schools, and district school

 7  boards.

 8         (2)  To assist local governmental entities, charter

 9  schools, and district school boards in providing essential

10  services without interruption and in meeting their financial

11  obligations.

12         (3)  To assist local governmental entities, charter

13  schools, and district school boards through the improvement of

14  local financial management procedures.

15         Section 7.  Section 218.503, Florida Statutes, is

16  amended to read:

17         218.503  Determination of financial emergency.--

18         (1)  Local governmental entities, charter schools, and

19  district school boards shall be subject to review and

20  oversight by the Governor, the charter school sponsor, or the

21  Commissioner of Education, as appropriate, when any one of the

22  following conditions occurs:

23         (a)  Failure within the same fiscal year in which due

24  to pay short-term loans or failure to make bond debt service

25  or other long-term debt payments when due, as a result of a

26  lack of funds.

27         (b)  Failure to pay uncontested claims from creditors

28  within 90 days after the claim is presented, as a result of a

29  lack of funds.

30         (c)  Failure to transfer at the appropriate time, due

31  to lack of funds:

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 1         1.  Taxes withheld on the income of employees; or

 2         2.  Employer and employee contributions for:

 3         a.  Federal social security; or

 4         b.  Any pension, retirement, or benefit plan of an

 5  employee.

 6         (d)  Failure for one pay period to pay, due to lack of

 7  funds:

 8         1.  Wages and salaries owed to employees; or

 9         2.  Retirement benefits owed to former employees.

10         (e)  An unreserved or total fund balance or retained

11  earnings deficit, or unrestricted or total net assets deficit,

12  as reported on the balance sheet or statement of net assets on

13  the general purpose or fund financial statements, for which

14  sufficient resources of the local governmental entity, as

15  reported on the balance sheet or statement of net assets on

16  the general purpose or fund financial statements, are not

17  available to cover the deficit. Resources available to cover

18  reported deficits include net assets that are not otherwise

19  restricted by federal, state, or local laws, bond covenants,

20  contractual agreements, or other legal constraints. Fixed or

21  capital assets, the disposal of which would impair the ability

22  of a local governmental entity to carry out its functions, are

23  not considered resources available to cover reported deficits.

24         (2)  A local governmental entity shall notify the

25  Governor and the Legislative Auditing Committee, a charter

26  school shall notify the charter school sponsor and the

27  Legislative Auditing Committee, and a district school board

28  shall notify the Commissioner of Education and the Legislative

29  Auditing Committee, when one or more of the conditions

30  specified in subsection (1) have occurred or will occur if

31  action is not taken to assist the local governmental entity,

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 1  charter school, or district school board. In addition, any

 2  state agency must, within 30 days after a determination that

 3  one or more of the conditions specified in subsection (1) have

 4  occurred or will occur if action is not taken to assist the

 5  local governmental entity, charter school, or district school

 6  board, notify the Governor, the charter school sponsor, or the

 7  Commissioner of Education, as appropriate, and the Legislative

 8  Auditing Committee.

 9         (3)  Upon notification that one or more of the

10  conditions in subsection (1) exist, the Governor or his or her

11  designee shall contact the local governmental entity or the

12  Commissioner of Education or his or her designee shall contact

13  the district school board to determine what actions have been

14  taken by the local governmental entity or the district school

15  board to resolve the condition. The Governor or the

16  Commissioner of Education, as appropriate, shall determine

17  whether the local governmental entity or the district school

18  board needs state assistance to resolve the condition. If

19  state assistance is needed, the local governmental entity or

20  district school board is considered to be in a state of

21  financial emergency. The Governor or the Commissioner of

22  Education, as appropriate, has the authority to implement

23  measures as set forth in ss. 218.50-218.504 to assist the

24  local governmental entity or district school board in

25  resolving the financial emergency. Such measures may include,

26  but are not limited to:

27         (a)  Requiring approval of the local governmental

28  entity's budget by the Governor or approval of the district

29  school board's budget by the Commissioner of Education.

30         (b)  Authorizing a state loan to a local governmental

31  entity and providing for repayment of same.

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 1         (c)  Prohibiting a local governmental entity or

 2  district school board from issuing bonds, notes, certificates

 3  of indebtedness, or any other form of debt until such time as

 4  it is no longer subject to this section.

 5         (d)  Making such inspections and reviews of records,

 6  information, reports, and assets of the local governmental

 7  entity or district school board. The appropriate local

 8  officials shall cooperate in such inspections and reviews.

 9         (e)  Consulting with officials and auditors of the

10  local governmental entity or the district school board and the

11  appropriate state officials regarding any steps necessary to

12  bring the books of account, accounting systems, financial

13  procedures, and reports into compliance with state

14  requirements.

15         (f)  Providing technical assistance to the local

16  governmental entity or the district school board.

17         (g)1.  Establishing a financial emergency board to

18  oversee the activities of the local governmental entity or the

19  district school board. If a financial emergency board is

20  established for a local governmental entity, the Governor

21  shall appoint board members and select a chair. If a financial

22  emergency board is established for a district school board,

23  the State Board of Education shall appoint board members and

24  select a chair. The financial emergency board shall adopt such

25  rules as are necessary for conducting board business. The

26  board may:

27         a.  Make such reviews of records, reports, and assets

28  of the local governmental entity or the district school board

29  as are needed.

30         b.  Consult with officials and auditors of the local

31  governmental entity or the district school board and the

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 1  appropriate state officials regarding any steps necessary to

 2  bring the books of account, accounting systems, financial

 3  procedures, and reports of the local governmental entity or

 4  the district school board into compliance with state

 5  requirements.

 6         c.  Review the operations, management, efficiency,

 7  productivity, and financing of functions and operations of the

 8  local governmental entity or the district school board.

 9         2.  The recommendations and reports made by the

10  financial emergency board must be submitted to the Governor

11  for local governmental entities or to the Commissioner of

12  Education and the State Board of Education for district school

13  boards for appropriate action.

14         (h)  Requiring and approving a plan, to be prepared by

15  officials of the local governmental entity or the district

16  school board in consultation with the appropriate state

17  officials, prescribing actions that will cause the local

18  governmental entity or district school board to no longer be

19  subject to this section. The plan must include, but need not

20  be limited to:

21         1.  Provision for payment in full of obligations

22  outlined in subsection (1), designated as priority items, that

23  are currently due or will come due.

24         2.  Establishment of priority budgeting or zero-based

25  budgeting in order to eliminate items that are not affordable.

26         3.  The prohibition of a level of operations which can

27  be sustained only with nonrecurring revenues.

28         (4)  Upon notification that one or more of the

29  conditions in subsection (1) exist, the charter school sponsor

30  or the sponsor's designee shall contact the charter school

31  governing board to determine what actions have been taken by

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 1  the charter school governing board to resolve the condition.

 2  The charter school sponsor may require and approve a

 3  financial-recovery plan, to be prepared by the charter school

 4  governing board, prescribing actions that will cause the

 5  charter school to no longer be subject to this section. The

 6  Department of Education must establish guidelines for

 7  developing such plans.

 8         (5)(4)  A local governmental entity or district school

 9  board may not seek application of laws under the bankruptcy

10  provisions of the United States Constitution except with the

11  prior approval of the Governor for local governmental entities

12  or the Commissioner of Education for district school boards.

13         (6)(5)(a)  The governing authority of any municipality

14  having a resident population of 300,000 or more on or after

15  April 1, 1999, which has been declared in a state of financial

16  emergency pursuant to this section may impose a discretionary

17  per-vehicle surcharge of up to 20 percent on the gross

18  revenues of the sale, lease, or rental of space at parking

19  facilities within the municipality which are open for use to

20  the general public.

21         (b)  A municipal governing authority that imposes the

22  surcharge authorized by this subsection may use the proceeds

23  of such surcharge for the following purposes only:

24         1.  No less than 60 percent and no more than 80 percent

25  of the surcharge proceeds shall be used by the governing

26  authority to reduce its ad valorem tax millage rate or to

27  reduce or eliminate non-ad valorem assessments.

28         2.  A portion of the balance of the surcharge proceeds

29  shall be used by the governing authority to increase its

30  budget reserves; however, the governing authority shall not

31  reduce the amount it allocates for budget reserves from other

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 1  sources below the amount allocated for reserves in the fiscal

 2  year prior to the year in which the surcharge is initially

 3  imposed. When a 15-percent budget reserve is achieved, based

 4  on the average gross revenue for the most recent 3 prior

 5  fiscal years, the remaining proceeds from this subparagraph

 6  shall be used for the payment of annual debt service related

 7  to outstanding obligations backed or secured by a covenant to

 8  budget and appropriate from non-ad valorem revenues.

 9         (c)  This subsection expires June 30, 2006.

10         Section 8.  Subsection (1) of section 218.504, Florida

11  Statutes, is amended to read:

12         218.504  Cessation of state action.--The Governor or

13  the Commissioner of Education, as appropriate, has the

14  authority to terminate all state actions pursuant to ss.

15  218.50-218.504. Cessation of state action must not occur until

16  the Governor or the Commissioner of Education, as appropriate,

17  has determined that:

18         (1)  The local governmental entity, charter school, or

19  district school board:

20         (a)  Has established and is operating an effective

21  financial accounting and reporting system.

22         (b)  Has resolved the conditions outlined in s.

23  218.503(1).

24         Section 9.  Paragraph (a) of subsection (9) and

25  paragraph (b) of subsection (11) of section 1002.32, Florida

26  Statutes, are amended to read:

27         1002.32  Developmental research (laboratory) schools.--

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

29  charter lab school, shall be provided as follows:

30         (a)  Each lab school shall be allocated its

31  proportional share of operating funds from the Florida

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 1  Education Finance Program as provided in s. 1011.62 based on

 2  the county in which the lab school is located and the General

 3  Appropriations Act. The nonvoted ad valorem millage that would

 4  otherwise be required for lab schools shall be allocated from

 5  state funds. The required local effort funds calculated

 6  pursuant to s. 1011.62 shall be allocated from state funds to

 7  the schools as a part of the allocation of operating funds

 8  pursuant to s. 1011.62. Each eligible lab school in operation

 9  as of September 1, 2002, shall also receive a proportional

10  share of the sparsity supplement as calculated pursuant to s.

11  1011.62. In addition, each lab school shall receive its

12  proportional share of all categorical funds, with the

13  exception of s. 1011.68, and new categorical funds enacted

14  after July 1, 1994, for the purpose of elementary or secondary

15  academic program enhancement. However, if a lab school elects

16  to provide student transportation for purposes of fulfilling

17  its requirement for having a representative student population

18  pursuant to s. 1002.32(4), the lab school is eligible for

19  funding pursuant to s. 1011.68. The sum of funds available as

20  provided in this paragraph shall be included annually in the

21  Florida Education Finance Program and appropriate categorical

22  programs funded in the General Appropriations Act.

23         (11)  EXCEPTIONS TO LAW.--To encourage innovative

24  practices and facilitate the mission of the lab schools, in

25  addition to the exceptions to law specified in s. 1001.23(2),

26  the following exceptions shall be permitted for lab schools:

27         (b)  With the exception of s. 1001.42(16), s. 1001.42

28  shall be held in abeyance, except that a lab school may elect

29  to provide transportation in accordance with s. 1001.42(8) for

30  purposes of fulfilling the requirement for having a

31  representative student population pursuant to s. 1002.32(4).

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 1  Reference to district school boards in s. 1001.42(16) shall

 2  mean the president of the university or the president's

 3  designee.

 4         Section 10.  This act shall take effect upon becoming a

 5  law.

 6  

 7            *****************************************

 8                          SENATE SUMMARY

 9    Revises various provisions governing the operation of a
      charter school. Requires that the district school board
10    document its denial of an application for a charter
      school. Requires the Department of Education to assist
11    applicants for a charter school and establish guidelines
      for financial-recovery plans. Revises procedures for
12    terminating or nonrenewing a charter. Provides that the
      termination or nonrenewal of a charter is not subject to
13    administrative review. Requires a charter school to file
      a financial-recovery plan under certain circumstances.
14    Provides that charter schools are eligible for certain
      capital outlay funds. Provides that charter schools be
15    included under laws governing financial emergencies. (See
      bill for details.)
16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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