Senate Bill sb2424c1

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                           CS for SB 2424

    By the Committee on Education; and Senator Webster





    581-2255-06

  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

                                  1

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 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;

                                  2

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 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; amending s.

30         1011.71, F.S.; clarifying the use of funds

31  

                                  3

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         generated through additional millage; providing

 2         an effective date.

 3  

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

 5  

 6         Section 1.  Section 1002.33, Florida Statutes, is

 7  amended to read:

 8         1002.33  Charter schools.--

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

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

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

12  by creating a new school or converting an existing public

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

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

15  section.

16         (2)  GUIDING PRINCIPLES; PURPOSE.--

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

18  following principles:

19         1.  Meet high standards of student achievement while

20  providing parents flexibility to choose among diverse

21  educational opportunities within the state's public school

22  system.

23         2.  Promote enhanced academic success and financial

24  efficiency by aligning responsibility with accountability.

25         3.  Provide parents with sufficient information on

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

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

28  spent in the charter school.

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

30  following purposes:

31         1.  Improve student learning and academic achievement.

                                  4

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         2.  Increase learning opportunities for all students,

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

 3         3.  Create new professional opportunities for teachers,

 4  including ownership of the learning program at the school

 5  site.

 6         4.  Encourage the use of innovative learning methods.

 7         5.  Require the measurement of learning outcomes.

 8         (c)  Charter schools may fulfill the following

 9  purposes:

10         1.  Create innovative measurement tools.

11         2.  Provide rigorous competition within the public

12  school district to stimulate continual improvement in all

13  public schools.

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

15         4.  Mitigate the educational impact created by the

16  development of new residential dwelling units.

17         (3)  APPLICATION FOR CHARTER STATUS.--

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

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

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

21  the laws of this state.

22         (b)  An application for a conversion charter school

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

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

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

26  2 years prior to the application to convert., including A

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

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

29  convert to charter status. An application submitted proposing

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

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

                                  5

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

 3  majority of the parents eligible to vote participate in the

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

 5  of Education. A district school board denying an application

 6  for a conversion charter school shall provide notice of denial

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

 8  meeting at which the district school board denied the

 9  application. The notice must identify specify the specific

10  exact reasons for denial and must provide documentation

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

12  or home education program shall not be eligible for charter

13  school status.

14         (4)  UNLAWFUL REPRISAL.--

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

16  employee who has control over personnel actions, shall take

17  unlawful reprisal against another district school board

18  employee because that employee is either directly or

19  indirectly involved with an application to establish a charter

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

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

22  a school system employee against an employee who is directly

23  or indirectly involved in a lawful application to establish a

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

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

26  following: disciplinary or corrective action; adverse transfer

27  or reassignment, whether temporary or permanent; suspension,

28  demotion, or dismissal; an unfavorable performance evaluation;

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

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

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

                                  6

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  changes in duties or responsibilities that are inconsistent

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

 3  following procedures shall apply to an alleged unlawful

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

 5  or indirect involvement with an application to establish a

 6  charter school:

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

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

 9  employee may file a complaint with the Department of

10  Education.

11         2.  Within 3 working days after receiving a complaint

12  under this section, the Department of Education shall

13  acknowledge receipt of the complaint and provide copies of the

14  complaint and any other relevant preliminary information

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

16  which parties shall each acknowledge receipt of such copies to

17  the complainant.

18         3.  If the Department of Education determines that the

19  complaint demonstrates reasonable cause to suspect that an

20  unlawful reprisal has occurred, the Department of Education

21  shall conduct an investigation to produce a fact-finding

22  report.

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

24  Department of Education shall provide the district school

25  superintendent of the complainant's district and the

26  complainant with a fact-finding report that may include

27  recommendations to the parties or a proposed resolution of the

28  complaint. The fact-finding report shall be presumed

29  admissible in any subsequent or related administrative or

30  judicial review.

31  

                                  7

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         5.  If the Department of Education determines that

 2  reasonable grounds exist to believe that an unlawful reprisal

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

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

 5  fact-finding report, the Department of Education shall

 6  terminate the investigation. Upon termination of any

 7  investigation, the Department of Education shall notify the

 8  complainant and the district school superintendent of the

 9  termination of the investigation, providing a summary of

10  relevant facts found during the investigation and the reasons

11  for terminating the investigation. A written statement under

12  this paragraph is presumed admissible as evidence in any

13  judicial or administrative proceeding.

14         6.  The Department of Education shall either contract

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

16  or otherwise provide for a complaint for which the Department

17  of Education determines reasonable grounds exist to believe

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

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

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

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

22  decision by the Department of Education.

23  

24  It shall be an affirmative defense to any action brought

25  pursuant to this section that the adverse action was

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

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

28  section.

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

30  it is determined reasonable grounds exist to believe that an

31  

                                  8

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  taken, the relief shall include the following:

 3         1.  Reinstatement of the employee to the same position

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

 5  equivalent position, or payment of reasonable front pay as

 6  alternative relief.

 7         2.  Reinstatement of the employee's full fringe

 8  benefits and seniority rights, as appropriate.

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

10  benefits, or other lost remuneration caused by the unlawful

11  reprisal.

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

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

14  prevailing employer if the employee filed a frivolous action

15  in bad faith.

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

17  court of competent jurisdiction.

18         6.  Temporary reinstatement to the employee's former

19  position or to an equivalent position, pending the final

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

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

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

23  personnel action against the employee that includes

24  documentation of the employee's violation of a disciplinary

25  standard or performance deficiency.

26         (5)  SPONSOR; DUTIES.--

27         (a)  Sponsoring entities.--

28         1.  A district school board may sponsor a charter

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

30  jurisdiction.

31  

                                  9

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

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

 4  charter lab school.

 5         (b)  Sponsor duties.--

 6         1.  The sponsor shall monitor and review the charter

 7  school in its progress toward the goals established in the

 8  charter.

 9         2.  The sponsor shall monitor the revenues and

10  expenditures of the charter school.

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

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

13  personnel, if the applicant indicates approval is necessary

14  for it to raise working funds capital.

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

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

17  charter school.

18         5.  The sponsor shall ensure that the charter is

19  innovative and consistent with the state education goals

20  established by s. 1000.03(5).

21         6.  The sponsor shall ensure that the charter school

22  participates in the state's education accountability system.

23  If a charter school falls short of performance measures

24  included in the approved charter, the sponsor shall report

25  such shortcomings to the Department of Education.

26         7.  The director and a representative of the governing

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

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

29  year to present information concerning each contract component

30  having noted deficiencies and to address corrective strategies

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

                                  10

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  director and the Department of Education, the services being

 3  provided to the school to help the school address its

 4  deficiencies.

 5  

 6  A community college may work with the school district or

 7  school districts in its designated service area to develop

 8  charter schools that offer secondary education. These charter

 9  schools must include an option for students to receive an

10  associate degree upon high school graduation. District school

11  boards shall cooperate with and assist the community college

12  on the charter application. Community college applications for

13  charter schools are not subject to the time deadlines outlined

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

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

16  not report FTE for any students who receive FTE funding

17  through the Florida Education Finance Program.

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

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

20  applications are subject to the following requirements:

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

22  school shall prepare an application that:

23         1.  Demonstrates how the school will use the guiding

24  principles and meet the statutorily defined purpose of a

25  charter school.

26         2.  Provides a detailed curriculum plan that

27  illustrates how students will be provided services to attain

28  the Sunshine State Standards.

29         3.  Contains goals and objectives for improving student

30  learning and measuring that improvement. These goals and

31  objectives must indicate how much academic improvement

                                  11

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  evaluated, and the specific results to be attained through

 3  instruction.

 4         4.  Describes the reading curriculum and differentiated

 5  strategies that will be used for students reading at grade

 6  level or higher and a separate curriculum and strategies for

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

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

 9  curriculum that is consistent with effective teaching

10  strategies that are grounded in scientifically based reading

11  research.

12         5.  Contains an annual financial plan for each year

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

14  5 years. This plan must contain anticipated fund balances

15  based on revenue projections, a spending plan based on

16  projected revenues and expenses, and a description of controls

17  that will safeguard finances and projected enrollment trends.

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

19  all applications for a charter school. Beginning with the

20  2007-2008 school year, a district school board shall receive

21  and consider charter school applications received on or before

22  August September 1 of each calendar year for charter schools

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

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

25  applicant and the district school board. A district school

26  board may receive applications later than this date if it

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

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

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

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

31  

                                  12

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         1.  In order to facilitate an accurate budget

 2  projection process, a district school board shall be held

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

 4  projection due to approval of charter school applications

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

 6  facilitate an accurate budget projection, within 15 calendar

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

 8  school board or other sponsor shall report to the Department

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

10  charter school location, and its projected FTE.

11         2.  In order to ensure fiscal responsibility, an

12  application for a charter school shall include a full

13  accounting of expected assets, a projection of expected

14  sources and amounts of income, including income derived from

15  projected student enrollments and from community support, and

16  an expense projection that includes full accounting of the

17  costs of operation, including start-up costs.

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

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

20  after the application is received, unless the district school

21  board and the applicant mutually agree in writing to

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

23  time the district school board shall by a majority vote

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

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

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

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

28  within 10 calendar days, articulate in writing the specific

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

30  charter application and provide a letter of denial and

31  

                                  13

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  supporting documentation to the applicant and to the

 2  Department of Education supporting those reasons.

 3         4.  For budget projection purposes, the district school

 4  board or other sponsor shall report to the Department of

 5  Education the approval or denial of a charter application

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

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

 8  shall include the final projected FTE for the approved charter

 9  school.

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

11  startup shall commence with the beginning of the public school

12  calendar for the district in which the charter is granted

13  unless the district school board allows a waiver of this

14  provision for good cause.

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

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

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

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

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

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

21  submitted to the State Board of Education within 30 calendar

22  days after notification of the appeal. Upon receipt of

23  notification from the State Board of Education that a charter

24  school applicant is filing an appeal, the Commissioner of

25  Education shall convene a meeting of the Charter School Appeal

26  Commission to study and make recommendations to the State

27  Board of Education regarding its pending decision about the

28  appeal. The commission shall forward its recommendation to the

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

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

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

                                  14

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  appeal is filed in accordance with State Board of Education

 3  rule. The Charter School Appeal Commission may reject an

 4  appeal submission for failure to comply with procedural rules

 5  governing the appeals process. The rejection shall describe

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

 7  calendar days from notice of rejection to resubmit an appeal

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

 9  application for appeal submitted subsequent to such rejection

10  shall be considered timely if the original appeal was filed

11  within 30 calendar days after receipt of notice of the

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

13  charter application. The State Board of Education shall remand

14  the application to the district school board with its written

15  decision that the district school board approve or deny the

16  application. The district school board shall implement the

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

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

19  the Administrative Procedure Act, chapter 120.

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

21  decision of the State Board of Education within 30 calendar

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

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

24  district court of appeal.

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

26  established to assist the commissioner and the State Board of

27  Education with a fair and impartial review of appeals by

28  applicants whose charter applications have been denied, whose

29  charter contracts have not been renewed, or whose charter

30  contracts have been terminated by their sponsors, or whose

31  

                                  15

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  disputes over contract negotiations have not been resolved

 2  through mediation.

 3         2.  The Charter School Appeal Commission may receive

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

 5  Education, review the documents, gather other applicable

 6  information regarding the appeal, and make a written

 7  recommendation to the commissioner. The recommendation must

 8  state whether the appeal should be upheld or denied and

 9  include the reasons for the recommendation being offered. The

10  commissioner shall forward the recommendation to the State

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

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

13  consider the commission's recommendation in making its

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

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

16  provisions of the Administrative Procedure Act, chapter 120.

17         3.  The commissioner shall appoint the members of the

18  Charter School Appeal Commission. Members shall serve without

19  compensation but may be reimbursed for travel and per diem

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

21  members must represent currently operating charter schools,

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

23  The commissioner or a named designee shall chair the Charter

24  School Appeal Commission.

25         4.  The chair shall convene meetings of the commission

26  and shall ensure that the written recommendations are

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

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

29  written recommendation with justification, noting that the

30  decision was rendered by the chair.

31  

                                  16

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         5.  Commission members shall thoroughly review the

 2  materials presented to them from the appellant and the

 3  sponsor. The commission may request information to clarify the

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

 5  the commission may facilitate the postponement of an appeal in

 6  those cases where additional time and communication may negate

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

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

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

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

11  Education. Commission members shall provide a written

12  recommendation to the state board as to whether the appeal

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

14  recommendation must be included. The chair must ensure that

15  the written recommendation is submitted to the State Board of

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

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

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

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

20  for training and technical assistance to each charter school

21  applicant in developing its business plan and estimating costs

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

23  costs, projecting enrollment, and identifying the types and

24  amounts of state and federal financial assistance the charter

25  school will be eligible to receive. The department of

26  Education may provide additional technical assistance to an

27  applicant upon written request.

28         (g)  In considering charter applications for a lab

29  school, a state university shall consult with the district

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

31  

                                  17

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  the procedure established in this subsection.

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

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

 5  applicant in a written contractual agreement, called a

 6  charter. The sponsor shall not impose unreasonable rules or

 7  regulations that violate the intent of giving charter schools

 8  greater flexibility to meet educational goals. The applicant

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

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

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

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

13  heard by the sponsor. The Department of Education shall

14  provide mediation services for any dispute regarding this

15  section subsequent to the approval of a charter application

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

17  disputes regarding charter school application denials. If the

18  Commissioner of Education determines that the dispute cannot

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

20  an administrative law judge appointed by the Division of

21  Administrative Hearings. The administrative law judge may rule

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

23  public school, whether proposed provisions of the charter

24  violate the intended flexibility granted charter schools by

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

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

27  a charter nonrenewal, and shall award the prevailing party

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

29  the losing party. The costs of the administrative hearing

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

31  rules against.

                                  18

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

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

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

 5  hearing to ensure community input.

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

 7  approval of the charter shall be based on:

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

 9  and the ages and grades to be included.

10         2.  The focus of the curriculum, the instructional

11  methods to be used, any distinctive instructional techniques

12  to be employed, and identification and acquisition of

13  appropriate technologies needed to improve educational and

14  administrative performance which include a means for promoting

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

16  with legal and professional standards. The charter shall

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

18  that resources are provided to identify and provide

19  specialized instruction for students who are reading below

20  grade level. The curriculum and instructional strategies for

21  reading must be consistent with the Sunshine State Standards

22  and grounded in scientifically based reading research.

23         3.  The current incoming baseline standard of student

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

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

26  in this subparagraph shall include a detailed description for

27  each of the following:

28         a.  How the baseline student academic achievement

29  levels and prior rates of academic progress will be

30  established.

31  

                                  19

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  of academic progress achieved by these same students while

 3  attending the charter school.

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

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

 6  closely comparable student populations.

 7  

 8  The district school board is required to provide academic

 9  student performance data to charter schools for each of their

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

11  rates of academic progress of comparable student populations

12  in the district school system.

13         4.  The methods used to identify the educational

14  strengths and needs of students and how well educational goals

15  and performance standards are met by students attending the

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

17  charter school to ensure accountability to its constituents by

18  analyzing student performance data and by evaluating the

19  effectiveness and efficiency of its major educational

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

21  participate in the statewide assessment program created under

22  s. 1008.22.

23         5.  In secondary charter schools, a method for

24  determining that a student has satisfied the requirements for

25  graduation in s. 1003.43.

26         6.  A method for resolving conflicts between the

27  governing body of the charter school and the sponsor.

28         7.  The admissions procedures and dismissal procedures,

29  including the school's code of student conduct.

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

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

                                  20

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  same school district.

 3         9.  The financial and administrative management of the

 4  school, including a reasonable demonstration of the

 5  professional experience or competence of those individuals or

 6  organizations applying to operate the charter school or those

 7  hired or retained to perform such professional services and

 8  the description of clearly delineated responsibilities and the

 9  policies and practices needed to effectively manage the

10  charter school. A description of internal audit procedures and

11  establishment of controls to ensure that financial resources

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

13  private sector professional experience shall be equally valid

14  in such a consideration.

15         10.  The asset and liability projections required in

16  the application which are incorporated into the charter and

17  which shall be compared with information provided in the

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

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

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

21  218.503 or a deficit financial position, the auditors are

22  required to notify the charter school governing board, the

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

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

25  the principal or the principal administrator of the charter

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

27  days after finding the state of financial emergency or deficit

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

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

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

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

                                  21

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  charter school must file a detailed financial-recovery plan

 2  with the sponsor. The department shall establish guidelines,

 3  with involvement from school districts and charter schools,

 4  for developing such plans.

 5         11.  A description of procedures that identify various

 6  risks and provide for a comprehensive approach to reduce the

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

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

 9  others from violent or disruptive student behavior; and the

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

11  or not the school will be required to have liability

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

13  the amounts of coverage.

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

15  cancellation of the charter if insufficient progress has been

16  made in attaining the student achievement objectives of the

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

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

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

20  facilitate access to long-term financial resources for charter

21  school construction, charter schools that are operated by a

22  municipality or other public entity as provided by law are

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

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

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

26  facilitate access to long-term financial resources for charter

27  school construction, charter schools that are operated by a

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

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

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

31  remain subject to annual review and may be terminated during

                                  22

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

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

 4         14.  The qualifications to be required of the teachers

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

 6  retain qualified staff to achieve best value.

 7         15.  The governance structure of the school, including

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

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

10         16.  A timetable for implementing the charter which

11  addresses the implementation of each element thereof and the

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

13  this timetable.

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

15  converted to charter status, alternative arrangements for

16  current students who choose not to attend the charter school

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

18  charter school after conversion in accordance with the

19  existing collective bargaining agreement or district school

20  board rule in the absence of a collective bargaining

21  agreement. However, alternative arrangements shall not be

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

23  charter lab school, except as authorized by the employment

24  policies of the state university which grants the charter to

25  the lab school.

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

27  provided that a program review demonstrates that the criteria

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

29  none of the grounds for nonrenewal established by paragraph

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

31  financing for charter school construction, charter schools

                                  23

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  operating for a minimum of 2 years and demonstrating exemplary

 2  academic programming and fiscal management are eligible for a

 3  15-year charter renewal. Such long-term charter is subject to

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

 5  charter.

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

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

 8  the charter school governing board and the approval of both

 9  parties to the agreement.

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

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

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

13  grounds:

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

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

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

17  performance stated in the charter.

18         2.  Failure to meet generally accepted standards of

19  fiscal management.

20         3.  Violation of law.

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

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

23  cause shown.

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

25  terminate the charter for any of the grounds listed in

26  paragraph (a).

27         (c)  Unless the sponsor and charter school mutually

28  agree that the school will remain open during specified

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

30  shall terminate the charter when the charter school receives a

31  

                                  24

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  consecutive years.

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

 4  terminating a charter, the sponsor shall notify the governing

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

 6  notice shall state in reasonable detail the grounds for the

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

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

 9  request an informal hearing before the sponsor. The sponsor

10  shall conduct the informal hearing within 30 calendar days

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

12  governing body may, within 14 calendar days after receiving

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

14  charter, appeal the decision pursuant to the procedure

15  established in subsection (6).

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

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

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

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

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

21  department if a charter is immediately terminated. The sponsor

22  must clearly identify the specific issues that resulted in the

23  immediate termination and provide evidence that the charter

24  school received prior notification of issues resulting in the

25  immediate termination. The school district in which the

26  charter school is located shall assume operation of the school

27  under these circumstances. The charter school's governing

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

29  decision to terminate the charter, appeal the decision

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

31  

                                  25

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  the school shall be dissolved under the provisions of law

 3  under which the school was organized, and any unencumbered

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

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

 6  charter school shall revert to the sponsor district school

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

 8  and federal charter school program grant funds that are

 9  unencumbered shall revert to the department to be

10  redistributed among eligible charter schools. In the event a

11  charter school is dissolved or is otherwise terminated, all

12  district school board property and improvements, furnishings,

13  and equipment purchased with public funds shall automatically

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

15  to complete satisfaction of any lawful liens or encumbrances.

16  Any unencumbered public funds from the charter school,

17  district school board property and improvements, furnishings,

18  and equipment purchased with public funds, or financial or

19  other records pertaining to the charter school, in the

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

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

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

23  resolved.

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

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

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

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

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

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

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

31  assumed to have been satisfied by the district.

                                  26

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

 3  enrolled in, another public school. Normal application

 4  deadlines shall be disregarded under such circumstances.

 5         (9)  CHARTER SCHOOL REQUIREMENTS.--

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

 7  programs, admission policies, employment practices, and

 8  operations.

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

10  in subsection (10).

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

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

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

14  registration fees, except those fees normally charged by other

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

16  student activity and service fee as authorized by s.

17  1002.32(5).

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

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

20         (f)  A charter school shall not violate the

21  antidiscrimination provisions of s. 1000.05.

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

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

24  audit that is conducted by a certified public accountant or

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

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

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

28  7 working days after the finding that a state of financial

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

30  state of financial emergency by a certified public accountant

31  or auditor, the charter school must file a detailed

                                  27

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  receipt of the audit.

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

 4  statewide.

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

 6  comparable to that reported for other public schools, charter

 7  schools are to maintain all financial records which constitute

 8  their accounting system:

 9         1.  In accordance with the accounts and codes

10  prescribed in the most recent issuance of the publication

11  titled "Financial and Program Cost Accounting and Reporting

12  for Florida Schools"; or

13         2.  At the discretion of the charter school governing

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

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

16  must reformat this information for reporting according to this

17  paragraph.

18  

19  Charter schools shall are to provide annual financial report

20  and program cost report information in the state-required

21  formats for inclusion in district reporting in compliance with

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

23  municipality or are a component unit of a parent nonprofit

24  organization may use the accounting system of the municipality

25  or the parent but must reformat this information for reporting

26  according to this paragraph.

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

28  annually adopt and maintain an operating budget.

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

30  exercise continuing oversight over charter school operations.

31  

                                  28

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  report its progress annually to its sponsor, which shall

 3  forward the report to the Commissioner of Education at the

 4  same time as other annual school accountability reports. The

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

 6  annual accountability report that must be completed by each

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

 8  for reporting demographic information, student performance

 9  data, and financial accountability information. A charter

10  school may not be required to provide information and data

11  that is duplicative and already in the possession of the

12  Department of Education. The Department of Education shall

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

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

15  The report shall include at least the following components:

16         1.  Student achievement performance data, including the

17  information required for the annual school report and the

18  education accountability system governed by ss. 1008.31 and

19  1008.345. Charter schools are subject to the same

20  accountability requirements as other public schools, including

21  reports of student achievement information that links baseline

22  student data to the school's performance projections

23  identified in the charter. The charter school shall identify

24  reasons for any difference between projected and actual

25  student performance.

26         2.  Financial status of the charter school which must

27  include revenues and expenditures at a level of detail that

28  allows for analysis of the ability to meet financial

29  obligations and timely repayment of debt.

30         3.  Documentation of the facilities in current use and

31  any planned facilities for use by the charter school for

                                  29

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  instruction of students, administrative functions, or

 2  investment purposes.

 3         4.  Descriptive information about the charter school's

 4  personnel, including salary and benefit levels of charter

 5  school employees, the proportion of instructional personnel

 6  who hold professional or temporary certificates, and the

 7  proportion of instructional personnel teaching in-field or

 8  out-of-field.

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

10  bonds secured by tax revenues.

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

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

13  schools, and may provide instruction for additional days.

14         (10)  ELIGIBLE STUDENTS.--

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

16  covered in an interdistrict agreement or residing in the

17  school district in which the charter school is located;

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

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

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

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

22  eligible student shall be allowed interdistrict transfer to

23  attend a charter school when based on good cause.

24         (b)  The charter school shall enroll an eligible

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

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

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

28  equal chance of being admitted through a random selection

29  process.

30  

31  

                                  30

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  enrollment preference shall be given to students who would

 3  have otherwise attended that public school.

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

 5  the following student populations:

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

 7  the charter school.

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

 9  governing board of the charter school.

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

11  charter school.

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

13  only to target the following student populations:

14         1.  Students within specific age groups or grade

15  levels.

16         2.  Students considered at risk of dropping out of

17  school or academic failure. Such students shall include

18  exceptional education students.

19         3.  Students enrolling in a charter

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

21  established pursuant to subsection (15).

22         4.  Students residing within a reasonable distance of

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

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

25  racial/ethnic balance provisions described in subparagraph

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

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

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

29  schools in the same school district.

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

31  other eligibility standards established by the charter school

                                  31

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

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

 4  standards shall be in accordance with current state law and

 5  practice in public schools and may not discriminate against

 6  otherwise qualified individuals.

 7         6.  Students articulating from one charter school to

 8  another pursuant to an articulation agreement between the

 9  charter schools that has been approved by the sponsor.

10         (f)  Students with handicapping conditions and students

11  served in English for Speakers of Other Languages programs

12  shall have an equal opportunity of being selected for

13  enrollment in a charter school.

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

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

16  district school board rule.

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

18  determined annually by the governing board, in conjunction

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

20  the factors identified in this subsection.

21         (11)  PARTICIPATION IN INTERSCHOLASTIC EXTRACURRICULAR

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

23  participate in an interscholastic extracurricular activity at

24  the public school to which the student would be otherwise

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

26         (12)  EMPLOYEES OF CHARTER SCHOOLS.--

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

28  charter school may contract with its sponsor for the services

29  of personnel employed by the sponsor.

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

31  bargain collectively. Employees may collectively bargain as a

                                  32

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  separate unit or as part of the existing district collective

 2  bargaining unit as determined by the structure of the charter

 3  school.

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

 5  remain public employees for all purposes, unless such

 6  employees choose not to do so.

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

 8  part of a professional group that subcontracts with the

 9  charter school to operate the instructional program under the

10  auspices of a partnership or cooperative that they

11  collectively own. Under this arrangement, the teachers would

12  not be public employees.

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

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

15  district school board. While employed by the charter school

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

17  the employee may retain seniority accrued in that school

18  district and may continue to be covered by the benefit

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

20  the district school board agree to this arrangement and its

21  financing. School districts shall not require resignations of

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

23  shall not prohibit a district school board from approving

24  alternative leave arrangements consistent with chapter 1012.

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

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

27  A charter school governing board may employ or contract with

28  skilled selected noncertified personnel to provide

29  instructional services or to assist instructional staff

30  members as education paraprofessionals in the same manner as

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

                                  33

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  Education rule for charter school governing boards. A charter

 2  school may not knowingly employ an individual to provide

 3  instructional services or to serve as an education

 4  paraprofessional if the individual's certification or

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

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

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

 8  disciplinary action with respect to child welfare or safety,

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

10  district with respect to child welfare or safety. The

11  qualifications of teachers shall be disclosed to parents.

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

13  employees who have undergone background screening as provided

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

15  school shall also undergo background screening in a manner

16  similar to that provided in s. 1012.32.

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

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

19  768.28.

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

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

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

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

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

25  participate in the Florida Retirement System upon application

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

27  charter school participates in the Florida Retirement System,

28  the charter school employees shall be compulsory members of

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

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

31  individual or group of individuals who are organized as a

                                  34

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  partnership or a cooperative. Individuals or groups of

 2  individuals who contract their services to the charter school

 3  are not public employees.

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

 5  enter into cooperative agreements to form charter school

 6  cooperative organizations that may provide the following

 7  services: charter school planning and development, direct

 8  instructional services, and contracts with charter school

 9  governing boards to provide personnel administrative services,

10  payroll services, human resource management, evaluation and

11  assessment services, teacher preparation, and professional

12  development.

13         (14)  CHARTER SCHOOL FINANCIAL ARRANGEMENTS;

14  INDEMNIFICATION OF THE STATE AND SCHOOL DISTRICT; CREDIT OR

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

16  to borrow or otherwise secure funds for a charter school

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

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

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

20  limited to, financial responsibility for the payment of the

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

22  agreements are not obligations of the state or the school

23  district but are obligations of the charter school authority

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

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

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

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

28  possession of a valid charter approved by a district school

29  board pursuant to this section.

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

31  SCHOOLS-IN-A-MUNICIPALITY.--

                                  35

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         (a)  In order to increase business partnerships in

 2  education, to reduce school and classroom overcrowding

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

 4  educational facilities construction, the Legislature intends

 5  to encourage the formation of business partnership schools or

 6  satellite learning centers and municipal-operated schools

 7  through charter school status.

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

 9  established when a business partner provides the school

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

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

12  business or corporation who are seeking enrollment, as

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

14  according to the racial/ethnic balance provisions described in

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

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

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

18  a public school.

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

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

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

22  children of the residents of that municipality who are seeking

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

24  students according to the racial/ethnic balance provisions

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

26  submitted charter applications for the establishment of a

27  charter school feeder pattern, consisting of elementary,

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

29  application is approved by the district school board, such

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

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

                                  36

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

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

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

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

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

 7  charter school-in-a-municipality.

 8         (16)  EXEMPTION FROM STATUTES.--

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

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

11  1000-1013. However, a charter school shall be in compliance

12  with the following statutes in chapters 1000-1013:

13         1.  Those statutes specifically applying to charter

14  schools, including this section.

15         2.  Those statutes pertaining to the student assessment

16  program and school grading system.

17         3.  Those statutes pertaining to the provision of

18  services to students with disabilities.

19         4.  Those statutes pertaining to civil rights,

20  including s. 1000.05, relating to discrimination.

21         5.  Those statutes pertaining to student health,

22  safety, and welfare.

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

24  compliance with the following statutes:

25         1.  Section 286.011, relating to public meetings and

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

27         2.  Chapter 119, relating to public records.

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

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

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

31  enrolled in other public schools in the school district.

                                  37

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  1002.32.

 3         (a)  Each charter school shall report its student

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

 5  1011.62, and in accordance with the definitions in s. 1011.61.

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

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

 8  charter schools submitting student record information required

 9  by the Department of Education shall comply with the

10  Department of Education's guidelines for electronic data

11  formats for such data, and all districts shall accept

12  electronic data that complies with the Department of

13  Education's electronic format.

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

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

16  district's operating funds from the Florida Education Finance

17  Program as provided in s. 1011.62 and the General

18  Appropriations Act, including gross state and local funds,

19  discretionary lottery funds, and funds from the school

20  district's current operating discretionary millage levy;

21  divided by total funded weighted full-time equivalent students

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

23  equivalent students for the charter school. Charter schools

24  whose students or programs meet the eligibility criteria in

25  law shall be entitled to their proportionate share of

26  categorical program funds included in the total funds

27  available in the Florida Education Finance Program by the

28  Legislature, including transportation. Total funding for each

29  charter school shall be recalculated during the year to

30  reflect the revised calculations under the Florida Education

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

                                  38

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  equivalent students reported by the charter school during the

 2  full-time equivalent student survey periods designated by the

 3  Commissioner of Education.

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

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

 6  students enrolled in charter schools in the school district

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

 8  provided students in the schools operated by the district

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

10  10306, all charter schools shall receive all federal funding

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

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

13  first opens and within 5 months after any subsequent expansion

14  of enrollment.

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

16  ensure that charter schools receive timely and efficient

17  reimbursement, including processing paperwork required to

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

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

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

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

22  Thereafter, the results of full-time equivalent student

23  membership surveys shall be used in adjusting the amount of

24  funds distributed monthly to the charter school for the

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

26  later than 10 working days after the district school board

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

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

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

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

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

                                  39

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

 3  time as the warrant is issued.

 4         (18)  FACILITIES.--

 5         (a)  A startup charter school shall utilize facilities

 6  that which comply with the Florida Building Code pursuant to

 7  chapter 553 except for the State Requirements for Educational

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

 9  may choose to comply, with the State Requirements for

10  Educational Facilities of the Florida Building Code adopted

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

12  not adopt or impose local building requirements or

13  restrictions that are more stringent than those found in the

14  Florida Building Code. The agency having jurisdiction for

15  inspection of a facility and issuance of a certificate of

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

17  unincorporated area, the county governing authority.

18         (b)  A charter school shall utilize facilities that

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

20  633.025, as adopted by the authority in whose jurisdiction the

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

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

23  charter school whose charter has been approved by the sponsor

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

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

26  library, community service facility, museum, performing arts

27  facility, theatre, cinema, church, community college, college,

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

29  facilities and under its existing zoning and land use

30  designations.

31  

                                  40

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         (d)  Charter school facilities are exempt from

 2  assessments of fees for building permits, except as provided

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

 4  and from assessments of impact fees or service availability

 5  fees.

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

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

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

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

10  schools in the district. A charter school receiving property

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

12  property without written permission of the school district.

13  Similarly, for an existing public school converting to charter

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

15  for the property normally inventoried to the conversion school

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

17  teachers organizing the charter school. The charter school

18  organizers shall agree to reasonable maintenance provisions in

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

20  school board standards. The Public Education Capital Outlay

21  maintenance funds or any other maintenance funds generated by

22  the facility operated as a conversion school shall remain with

23  the conversion school.

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

25  specifically created to mitigate the educational impact

26  created by the development of new residential dwelling units,

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

28  educational impact fees required to be paid in connection with

29  the new residential dwelling units may be designated instead

30  for the construction of the charter school facilities that

31  will mitigate the student station impact. Such facilities

                                  41

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  shall be built to the State Requirements for Educational

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

 3  The local school district retains the right to monitor and

 4  inspect such facilities to ensure compliance with the State

 5  Requirements for Educational Facilities. If a facility ceases

 6  to be used for public educational purposes, either the

 7  facility shall revert to the school district subject to any

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

 9  have the option to refund all educational impact fees utilized

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

11  owner of the facility may contractually agree to another

12  arrangement for the facilities if the facilities cease to be

13  used for educational purposes. The owner of property planned

14  or approved for new residential dwelling units and the entity

15  levying educational impact fees shall enter into an agreement

16  that designates the educational impact fees that will be

17  allocated for the charter school student stations and that

18  ensures the timely construction of the charter school student

19  stations concurrent with the expected occupancy of the

20  residential units. The application for use of educational

21  impact fees shall include an approved charter school

22  application. To assist the school district in forecasting

23  student station needs, the entity levying the impact fees

24  shall notify the affected district of any agreements it has

25  approved for the purpose of mitigating student station impact

26  from the new residential dwelling units.

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

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

29         (20)  SERVICES.--

30         (a)  A sponsor shall provide certain administrative and

31  educational services to charter schools. These services shall

                                  42

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  include contract management services; full-time equivalent and

 2  data reporting services; exceptional student education

 3  administration and evaluation services; such services as are

 4  required to fulfill eligibility and reporting requirements to

 5  ensure school lunch services under the federal lunch program,

 6  consistent with the needs of the charter school and provided

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

 8  test administration services, including payment of the costs

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

10  processing of teacher certificate data services; and

11  information services, including equal access to student

12  information systems that are used by public schools in the

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

14  administrative fee for the provision of such services shall be

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

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

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

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

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

20  difference between the total administrative fee calculation

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

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

23  1013.62(2). Sponsors shall not charge charter schools any

24  additional fees or surcharges for administrative and

25  educational services in addition to the maximum 5-percent

26  administrative fee withheld pursuant to this paragraph.

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

28  charter school through the contract with the school district,

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

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

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

                                  43

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  negotiated separately from the charter. When mediation has

 2  failed to resolve disputes over contracted services or

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

 4  be made for a dispute resolution hearing before the Charter

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

 6  school districts shall allow charter schools to participate in

 7  the sponsor's bulk purchasing program if applicable.

 8         (c)  Transportation of charter school students shall be

 9  provided by the charter school consistent with the

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

11  The governing body of the charter school may provide

12  transportation through an agreement or contract with the

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

14  charter school and the sponsor shall cooperate in making

15  arrangements that ensure that transportation is not a barrier

16  to equal access for all students residing within a reasonable

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

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

19  Department of Education shall provide information to the

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

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

22  schools once they are created. This information shall include

23  a standard application format, charter format, and charter

24  renewal format, which shall include the information specified

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

26  may be used by charter school sponsors chartering entities.

27         (22)  CHARTER SCHOOL REVIEW PANEL AND LEGISLATIVE

28  REVIEW.--

29         (a)  The Department of Education shall provide the

30  staff for and regularly convene a Charter School Review Panel

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

                                  44

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  charter schools. The composition of the review panel shall

 2  include individuals with experience in finance,

 3  administration, law, education, and school governance, and

 4  individuals familiar with charter school construction and

 5  operation. The panel shall include two appointees each from

 6  the Commissioner of Education, the President of the Senate,

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

 8  shall appoint three members of the panel and shall designate

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

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

11  shall make recommendations to the Legislature, to the

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

13  districts for improving charter school operations and

14  oversight and for ensuring best business practices at and fair

15  business relationships with charter schools.

16         (b)  The Legislature shall review the operation of

17  charter schools during the 2010 2005 Regular Session of the

18  Legislature.

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

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

21  Department of Education shall provide to the State Board of

22  Education, the Commissioner of Education, the Governor, the

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

24  Representatives an analysis and comparison of the overall

25  performance of charter school students, to include all

26  students whose scores are counted as part of the statewide

27  assessment program, versus comparable public school students

28  in the district as determined by the statewide assessment

29  program currently administered in the school district, and

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

31  

                                  45

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  consultation with school districts and charter school

 3  directors, shall recommend that the State Board of Education

 4  adopt rules to implement specific subsections of this section.

 5  Such rules shall require minimum paperwork and shall not limit

 6  charter school flexibility authorized by statute.

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

 8  Statutes, is amended to read:

 9         1003.05  Assistance to transitioning students from

10  military families.--

11         (3)  Dependent children of active duty military

12  personnel who otherwise meet the eligibility criteria for

13  special academic programs offered through public schools shall

14  be given first preference for admission to such programs even

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

16  than the school to which the student would generally be

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

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

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

20  the student would generally be assigned, the parent or

21  guardian of the student must assume responsibility for

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

23  subsection, special academic programs include charter schools,

24  magnet schools, advanced studies programs, advanced placement,

25  dual enrollment, and International Baccalaureate.

26         Section 3.  Section 1013.62, Florida Statutes, is

27  amended to read:

28         1013.62  Charter schools capital outlay funding.--

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

30  charter school capital outlay purposes, the Commissioner of

31  Education shall allocate the funds among eligible charter

                                  46

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  school must be one of the following:

 3         (a)  The same school that received capital outlay

 4  funding in 2002-2003.

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

 6  pattern of a charter school that received capital outlay

 7  funding in 2002-2003.

 8         (2)  If an appropriation for charter school capital

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

10  funds shall be prorated among schools eligible pursuant to

11  subsection (1).

12         (3)  If an appropriation for charter school capital

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

14  funds shall be allocated to schools eligible pursuant to

15  subsection (1) and to charter schools that:

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

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

18  within the same school district that is currently receiving

19  charter school capital outlay funds; or

20         3.  Have been accredited by the Commission on Schools

21  of the Southern Association of Colleges and Schools.

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

23  charter school.

24         (c)  Have satisfactory student achievement based on

25  state accountability standards applicable to the charter

26  school.

27         (d)  Have received final approval from its sponsor

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

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

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

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

                                  47

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  to prorate the excess funds among charter schools having

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

 3  initial allocation is insufficient to provide one-fifteenth of

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

 5  and second priority shall be to other eligible charter

 6  schools.

 7  

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

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

10  Education shall ensure that the district school board and the

11  charter school governing board enter into a written agreement

12  that includes provisions for the reversion of any unencumbered

13  funds and all equipment and property purchased with public

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

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

16  school terminates operations. Any funds recovered by the state

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

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

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

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

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

22  operated by the school district. Unless otherwise provided in

23  the General Appropriations Act, the funding allocation for

24  each eligible charter school shall be determined by

25  multiplying the school's projected student enrollment by

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

27  1013.64(6)(b) for an elementary, middle, or high school, as

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

29  commissioner shall prorate the available funds among eligible

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

31  school shall receive state charter school capital outlay funds

                                  48

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

 3  school capital outlay funds, capital outlay funds calculated

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

 5  1002.33(20), and capital outlay funds allowed in s.

 6  1002.32(9)(e) and (h) exceeds the one-fifteenth cost per

 7  student station formula. Funds shall be distributed on the

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

 9  grade level, which shall be calculated by averaging the

10  results of the second and third enrollment surveys. The

11  Department of Education shall distribute capital outlay funds

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

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

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

15  The commissioner shall adjust subsequent distributions as

16  necessary to reflect each charter school's actual student

17  enrollment as reflected in the second and third enrollment

18  surveys. The commissioner shall establish the intervals and

19  procedures for determining the projected and actual student

20  enrollment of eligible charter schools.

21         (4)(2)  A charter school's governing body may use

22  charter school capital outlay funds for the following

23  purposes:

24         (a)  Purchase of real property.

25         (b)  Construction of school facilities.

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

27  relocatable school facilities.

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

29  from the charter school.

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

31  maintenance of school facilities that the charter school owns

                                  49

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  of 5 years or longer.

 3  

 4  Conversion charter schools may use capital outlay funds

 5  received through the reduction in the administrative fee

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

 7  maintenance of school facilities that are owned by the

 8  sponsor.

 9         (5)(3)  When a charter school is nonrenewed or

10  terminated, any unencumbered funds and all equipment and

11  property purchased with district public funds shall revert to

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

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

14  any unencumbered funds and all equipment and property

15  purchased with university public funds shall revert to the

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

17  reversion of such equipment, property, and furnishings shall

18  focus on recoverable assets, but not on intangible or

19  irrecoverable costs such as rental or leasing fees, normal

20  maintenance, and limited renovations. The reversion of all

21  property secured with public funds is subject to the complete

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

23  additional local issues such as the shared use of facilities

24  or partial ownership of facilities or property, these issues

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

26  expenditure of funds.

27         (6)(4)  The Commissioner of Education shall specify

28  procedures for submitting and approving requests for funding

29  under this section and procedures for documenting

30  expenditures.

31  

                                  50

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         (7)(5)  The annual legislative budget request of the

 2  Department of Education shall include a request for capital

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

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

 5  schools who meet the eligibility requirements of this section.

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

 7  Commissioner of Education and submitted along with the annual

 8  charter school legislative budget request, may be considered

 9  an additional source of funding.

10         (8)(6)  Unless authorized otherwise by the Legislature,

11  allocation and proration of charter school capital outlay

12  funds shall be made to eligible charter schools by the

13  Commissioner of Education in an amount and in a manner

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

15         (7)  Notwithstanding the provisions of this section,

16  beginning in the 2003-2004 fiscal year:

17         (a)  If the appropriation for charter school capital

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

19  the funds shall be allocated according to the formula outlined

20  in subsection (1) to:

21         1.  The same schools that received funding in

22  2002-2003.

23         2.  Schools that are an expanded feeder pattern of

24  schools that received funding in 2002-2003.

25         3.  Schools that have an approved charter and are

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

27  either incurred long-term financial obligations prior to

28  January 31, 2003, or began construction on educational

29  facilities prior to December 31, 2002.

30         (b)  If the appropriation for charter school capital

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

                                  51

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  funds shall be prorated among the schools eligible in

 2  paragraph (a).

 3         (c)  If the appropriation for charter school capital

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

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

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

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

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

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

10  initial allocation is insufficient to provide one-fifteenth of

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

12  and second priority shall be to other eligible charter

13  schools.

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

15  Statutes, is amended to read:

16         218.39  Annual financial audit reports.--

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

18  discuss with the chair of each local governmental entity or

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

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

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

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

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

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

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

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

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

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

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

30  governing body of a local governmental entity, or district

31  school board, or charter school for which deteriorating

                                  52

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  financial conditions exist that may cause a condition

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

 3  to address such conditions.

 4         Section 5.  Section 218.50, Florida Statutes, is

 5  amended to read:

 6         218.50  Short title.--Sections 218.50-218.504 may be

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

 8  District School Board Financial Emergencies Act."

 9         Section 6.  Section 218.501, Florida Statutes, is

10  amended to read:

11         218.501  Purposes.--The purposes of ss. 218.50-218.504

12  are:

13         (1)  To promote the fiscal responsibility of local

14  governmental entities, charter schools, and district school

15  boards.

16         (2)  To assist local governmental entities, charter

17  schools, and district school boards in providing essential

18  services without interruption and in meeting their financial

19  obligations.

20         (3)  To assist local governmental entities, charter

21  schools, and district school boards through the improvement of

22  local financial management procedures.

23         Section 7.  Section 218.503, Florida Statutes, is

24  amended to read:

25         218.503  Determination of financial emergency.--

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

27  district school boards shall be subject to review and

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

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

30  following conditions occurs:

31  

                                  53

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

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

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

 4  lack of funds.

 5         (b)  Failure to pay uncontested claims from creditors

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

 7  lack of funds.

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

 9  to lack of funds:

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

11         2.  Employer and employee contributions for:

12         a.  Federal social security; or

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

14  employee.

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

16  funds:

17         1.  Wages and salaries owed to employees; or

18         2.  Retirement benefits owed to former employees.

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

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

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

22  the general purpose or fund financial statements, for which

23  sufficient resources of the local governmental entity, as

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

25  the general purpose or fund financial statements, are not

26  available to cover the deficit. Resources available to cover

27  reported deficits include net assets that are not otherwise

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

29  contractual agreements, or other legal constraints. Fixed or

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

31  

                                  54

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




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

 2  not considered resources available to cover reported deficits.

 3         (2)  A local governmental entity shall notify the

 4  Governor and the Legislative Auditing Committee, a charter

 5  school shall notify the charter school sponsor and the

 6  Legislative Auditing Committee, and a district school board

 7  shall notify the Commissioner of Education and the Legislative

 8  Auditing Committee, when one or more of the conditions

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

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

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

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

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

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

15  local governmental entity, charter school, or district school

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

17  Commissioner of Education, as appropriate, and the Legislative

18  Auditing Committee.

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

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

21  designee shall contact the local governmental entity or the

22  Commissioner of Education or his or her designee shall contact

23  the district school board to determine what actions have been

24  taken by the local governmental entity or the district school

25  board to resolve the condition. The Governor or the

26  Commissioner of Education, as appropriate, shall determine

27  whether the local governmental entity or the district school

28  board needs state assistance to resolve the condition. If

29  state assistance is needed, the local governmental entity or

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

31  financial emergency. The Governor or the Commissioner of

                                  55

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  Education, as appropriate, has the authority to implement

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

 3  local governmental entity or district school board in

 4  resolving the financial emergency. Such measures may include,

 5  but are not limited to:

 6         (a)  Requiring approval of the local governmental

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

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

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

10  entity and providing for repayment of same.

11         (c)  Prohibiting a local governmental entity or

12  district school board from issuing bonds, notes, certificates

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

14  it is no longer subject to this section.

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

16  information, reports, and assets of the local governmental

17  entity or district school board. The appropriate local

18  officials shall cooperate in such inspections and reviews.

19         (e)  Consulting with officials and auditors of the

20  local governmental entity or the district school board and the

21  appropriate state officials regarding any steps necessary to

22  bring the books of account, accounting systems, financial

23  procedures, and reports into compliance with state

24  requirements.

25         (f)  Providing technical assistance to the local

26  governmental entity or the district school board.

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

28  oversee the activities of the local governmental entity or the

29  district school board. If a financial emergency board is

30  established for a local governmental entity, the Governor

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

                                  56

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  emergency board is established for a district school board,

 2  the State Board of Education shall appoint board members and

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

 4  rules as are necessary for conducting board business. The

 5  board may:

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

 7  of the local governmental entity or the district school board

 8  as are needed.

 9         b.  Consult with officials and auditors of the local

10  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 of the local governmental entity or

14  the district school board into compliance with state

15  requirements.

16         c.  Review the operations, management, efficiency,

17  productivity, and financing of functions and operations of the

18  local governmental entity or the district school board.

19         2.  The recommendations and reports made by the

20  financial emergency board must be submitted to the Governor

21  for local governmental entities or to the Commissioner of

22  Education and the State Board of Education for district school

23  boards for appropriate action.

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

25  officials of the local governmental entity or the district

26  school board in consultation with the appropriate state

27  officials, prescribing actions that will cause the local

28  governmental entity or district school board to no longer be

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

30  be limited to:

31  

                                  57

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         1.  Provision for payment in full of obligations

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

 3  are currently due or will come due.

 4         2.  Establishment of priority budgeting or zero-based

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

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

 7  be sustained only with nonrecurring revenues.

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

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

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

11  governing board to determine what actions have been taken by

12  the charter school governing board to resolve the condition.

13  The charter school sponsor may require and approve a

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

15  governing board, prescribing actions that will cause the

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

17  Department of Education must establish guidelines for

18  developing such plans.

19         (5)(4)  A local governmental entity or district school

20  board may not seek application of laws under the bankruptcy

21  provisions of the United States Constitution except with the

22  prior approval of the Governor for local governmental entities

23  or the Commissioner of Education for district school boards.

24         (6)(5)(a)  The governing authority of any municipality

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

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

27  emergency pursuant to this section may impose a discretionary

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

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

30  facilities within the municipality which are open for use to

31  the general public.

                                  58

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         (b)  A municipal governing authority that imposes the

 2  surcharge authorized by this subsection may use the proceeds

 3  of such surcharge for the following purposes only:

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

 5  of the surcharge proceeds shall be used by the governing

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

 7  reduce or eliminate non-ad valorem assessments.

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

 9  shall be used by the governing authority to increase its

10  budget reserves; however, the governing authority shall not

11  reduce the amount it allocates for budget reserves from other

12  sources below the amount allocated for reserves in the fiscal

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

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

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

16  fiscal years, the remaining proceeds from this subparagraph

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

18  to outstanding obligations backed or secured by a covenant to

19  budget and appropriate from non-ad valorem revenues.

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

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

22  Statutes, is amended to read:

23         218.504  Cessation of state action.--The Governor or

24  the Commissioner of Education, as appropriate, has the

25  authority to terminate all state actions pursuant to ss.

26  218.50-218.504. Cessation of state action must not occur until

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

28  has determined that:

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

30  district school board:

31  

                                  59

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         (a)  Has established and is operating an effective

 2  financial accounting and reporting system.

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

 4  218.503(1).

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

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

 7  Statutes, are amended to read:

 8         1002.32  Developmental research (laboratory) schools.--

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

10  charter lab school, shall be provided as follows:

11         (a)  Each lab school shall be allocated its

12  proportional share of operating funds from the Florida

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

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

15  Appropriations Act. The nonvoted ad valorem millage that would

16  otherwise be required for lab schools shall be allocated from

17  state funds. The required local effort funds calculated

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

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

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

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

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

23  1011.62. In addition, each lab school shall receive its

24  proportional share of all categorical funds, with the

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

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

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

28  to provide student transportation for purposes of fulfilling

29  its requirement for having a representative student population

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

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

                                  60

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1  provided in this paragraph shall be included annually in the

 2  Florida Education Finance Program and appropriate categorical

 3  programs funded in the General Appropriations Act.

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

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

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

 7  the following exceptions shall be permitted for lab schools:

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

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

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

11  purposes of fulfilling the requirement for having a

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

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

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

15  designee.

16         Section 10.  Subsection (2) of section 1011.71, Florida

17  Statutes, is amended to read:

18         1011.71  District school tax.--

19         (2)  In addition to the maximum millage levy as

20  provided in subsection (1), each school board may levy not

21  more than 2 mills against the taxable value for school

22  purposes for district schools, including charter schools, to

23  fund:

24         (a)  New construction and remodeling projects, as set

25  forth in s. 1013.64(3)(b) and (6)(b) and included in the

26  district's educational plant survey pursuant to s. 1013.31,

27  without regard to prioritization, sites and site improvement

28  or expansion to new sites, existing sites, auxiliary

29  facilities, athletic facilities, or ancillary facilities.

30  

31  

                                  61

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         (b)  Maintenance, renovation, and repair of existing

 2  school plants or of leased facilities to correct deficiencies

 3  pursuant to s. 1013.15(2).

 4         (c)  The purchase, lease-purchase, or lease of school

 5  buses; drivers' education vehicles; motor vehicles used for

 6  the maintenance or operation of plants and equipment; security

 7  vehicles; or vehicles used in storing or distributing

 8  materials and equipment.

 9         (d)  The purchase, lease-purchase, or lease of new and

10  replacement equipment.

11         (e)  Payments for educational facilities and sites due

12  under a lease-purchase agreement entered into by a district

13  school board pursuant to s. 1003.02(1)(f) or s. 1013.15(2),

14  not exceeding, in the aggregate, an amount equal to

15  three-fourths of the proceeds from the millage levied by a

16  district school board pursuant to this subsection.

17         (f)  Payment of loans approved pursuant to ss. 1011.14

18  and 1011.15.

19         (g)  Payment of costs directly related to complying

20  with state and federal environmental statutes, rules, and

21  regulations governing school facilities.

22         (h)  Payment of costs of leasing relocatable

23  educational facilities, of renting or leasing educational

24  facilities and sites pursuant to s. 1013.15(2), or of renting

25  or leasing buildings or space within existing buildings

26  pursuant to s. 1013.15(4).

27         (i)  Payment of the cost of school buses when a school

28  district contracts with a private entity to provide student

29  transportation services if the district meets the requirements

30  of this paragraph.

31  

                                  62

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






    Florida Senate - 2006                           CS for SB 2424
    581-2255-06




 1         1.  The district's contract must require that the

 2  private entity purchase, lease-purchase, or lease, and operate

 3  and maintain, one or more school buses of a specific type and

 4  size that meet the requirements of s. 1006.25.

 5         2.  Each such school bus must be used for the daily

 6  transportation of public school students in the manner

 7  required by the school district.

 8         3.  Annual payment for each such school bus may not

 9  exceed 10 percent of the purchase price of the state pool bid.

10         4.  The proposed expenditure of the funds for this

11  purpose must have been included in the district school board's

12  notice of proposed tax for school capital outlay as provided

13  in s. 200.065(9).

14  

15  Violations of these expenditure provisions shall result in an

16  equal dollar reduction in the Florida Education Finance

17  Program (FEFP) funds for the violating district in the fiscal

18  year following the audit citation.

19         Section 11.  This act shall take effect upon becoming a

20  law.

21  

22          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
23                         Senate Bill 2424

24                                 

25  The committee substitute allows the two mills levy to
    specifically be used for districts schools, including charter
26  schools. This levy may be used to fund the purposes specified
    in s. 1011.71(2)(a) through (i), F.S., including, but not
27  limited to, new construction and remodeling projects.

28  

29  

30  

31  

                                  63

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