HB 7103CS

CHAMBER ACTION




1The Education Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to charter schools; amending s. 1002.33,
7F.S.; revising charter school purposes; modifying
8provisions relating to duties of sponsors, the application
9process, denial of an application, and review of appeals;
10requiring the Department of Education to provide technical
11assistance to charter school applicants; providing
12requirements relating to charter contracts; providing
13procedures when a state of financial emergency exists;
14revising provisions relating to charter terms and renewal;
15revising nonrenewal and termination provisions, including
16procedures for immediate termination; revising provisions
17relating to the reversion of funds; revising duties of a
18charter school governing body relating to audits;
19requiring the department to develop a uniform
20accountability report; providing procedures with respect
21to charter schools with deficiencies; requiring a school
22improvement plan to raise student achievement; providing
23for probation and corrective actions; requiring
24consultation with respect to conversion charter school
25attendance zones; revising provisions relating to payment
26and reimbursement to a charter school by a school district
27and authorizing the withholding of lottery funds under
28certain circumstances; authorizing the State Board of
29Education to impose a fine on or withhold lottery funds
30from a school district for certain violations; requiring
31conversion charter schools to comply with certain facility
32requirements under specific situations; authorizing
33certain zoning and land use designations for certain
34charter school facilities; revising exemption from
35assessment of fees; authorizing the department to
36recommend that school districts make certain space
37available to charter schools; providing for additional
38services to charter schools and revising administrative
39fee requirements; requiring the department to develop a
40standard format for applications, charters, and charter
41renewals; requiring legislative review of charter schools
42in 2010; amending s. 218.39, F.S.; requiring the governing
43body of a charter school to be notified of certain
44deteriorating financial conditions; amending s. 218.50,
45F.S.; modifying a short title; amending s. 218.501, F.S.;
46including charter schools in the statement of purpose
47relating to financial management; amending s. 218.503,
48F.S.; providing for charter schools to be subject to
49provisions governing financial emergencies; providing
50procedures; amending s. 218.504, F.S.; providing for
51cessation of state action related to a state of financial
52emergency; amending s. 11.45, F.S.; conforming provisions;
53amending s. 1003.05, F.S.; modifying the list of special
54academic programs for transitioning students from military
55families; amending s. 1012.74, F.S.; providing that
56educator professional liability insurance shall cover
57charter school personnel; providing effective dates.
58
59Be It Enacted by the Legislature of the State of Florida:
60
61     Section 1.  Section 1002.33, Florida Statutes, is amended
62to read:
63     1002.33  Charter schools.--
64     (1)  AUTHORIZATION.--Charter schools shall be part of the
65state's program of public education. All charter schools in
66Florida are public schools. A charter school may be formed by
67creating a new school or converting an existing public school to
68charter status. A public school may not use the term charter in
69its name unless it has been approved under this section.
70     (2)  GUIDING PRINCIPLES; PURPOSE.--
71     (a)  Charter schools in Florida shall be guided by the
72following principles:
73     1.  Meet high standards of student achievement while
74providing parents flexibility to choose among diverse
75educational opportunities within the state's public school
76system.
77     2.  Promote enhanced academic success and financial
78efficiency by aligning responsibility with accountability.
79     3.  Provide parents with sufficient information on whether
80their child is reading at grade level and whether the child
81gains at least a year's worth of learning for every year spent
82in the charter school.
83     (b)  Charter schools shall fulfill the following purposes:
84     1.  Improve student learning and academic achievement.
85     2.  Increase learning opportunities for all students, with
86special emphasis on low-performing students and reading.
87     3.  Create new professional opportunities for teachers,
88including ownership of the learning program at the school site.
89     3.4.  Encourage the use of innovative learning methods.
90     4.5.  Require the measurement of learning outcomes.
91     (c)  Charter schools may fulfill the following purposes:
92     1.  Create innovative measurement tools.
93     2.  Provide rigorous competition within the public school
94district to stimulate continual improvement in all public
95schools.
96     3.  Expand the capacity of the public school system.
97     4.  Mitigate the educational impact created by the
98development of new residential dwelling units.
99     5.  Create new professional opportunities for teachers,
100including ownership of the learning program at the school site.
101     (3)  APPLICATION FOR CHARTER STATUS.--
102     (a)  An application for a new charter school may be made by
103an individual, teachers, parents, a group of individuals, a
104municipality, or a legal entity organized under the laws of this
105state.
106     (b)  An application for a conversion charter school shall
107be made by the district school board, the principal, teachers,
108parents, and/or the school advisory council at an existing
109public school that has been in operation for at least 2 years
110prior to the application to convert., including A public school-
111within-a-school that is designated as a school by the district
112school board may also submit an application to convert to
113charter status. An application submitted proposing to convert an
114existing public school to a charter school shall demonstrate the
115support of at least 50 percent of the teachers employed at the
116school and 50 percent of the parents voting whose children are
117enrolled at the school, provided that a majority of the parents
118eligible to vote participate in the ballot process, according to
119rules adopted by the State Board of Education. A district school
120board denying an application for a conversion charter school
121shall provide notice of denial to the applicants in writing
122within 10 30 days after the meeting at which the district school
123board denied the application. The notice must articulate in
124writing specify the specific exact reasons for denial and must
125provide documentation supporting those reasons. A private
126school, parochial school, or home education program shall not be
127eligible for charter school status.
128     (4)  UNLAWFUL REPRISAL.--
129     (a)  No district school board, or district school board
130employee who has control over personnel actions, shall take
131unlawful reprisal against another district school board employee
132because that employee is either directly or indirectly involved
133with an application to establish a charter school. As used in
134this subsection, the term "unlawful reprisal" means an action
135taken by a district school board or a school system employee
136against an employee who is directly or indirectly involved in a
137lawful application to establish a charter school, which occurs
138as a direct result of that involvement, and which results in one
139or more of the following: disciplinary or corrective action;
140adverse transfer or reassignment, whether temporary or
141permanent; suspension, demotion, or dismissal; an unfavorable
142performance evaluation; a reduction in pay, benefits, or
143rewards; elimination of the employee's position absent of a
144reduction in workforce as a result of lack of moneys or work; or
145other adverse significant changes in duties or responsibilities
146that are inconsistent with the employee's salary or employment
147classification. The following procedures shall apply to an
148alleged unlawful reprisal that occurs as a consequence of an
149employee's direct or indirect involvement with an application to
150establish a charter school:
151     1.  Within 60 days after the date upon which a reprisal
152prohibited by this subsection is alleged to have occurred, an
153employee may file a complaint with the Department of Education.
154     2.  Within 3 working days after receiving a complaint under
155this section, the Department of Education shall acknowledge
156receipt of the complaint and provide copies of the complaint and
157any other relevant preliminary information available to each of
158the other parties named in the complaint, which parties shall
159each acknowledge receipt of such copies to the complainant.
160     3.  If the Department of Education determines that the
161complaint demonstrates reasonable cause to suspect that an
162unlawful reprisal has occurred, the Department of Education
163shall conduct an investigation to produce a fact-finding report.
164     4.  Within 90 days after receiving the complaint, the
165Department of Education shall provide the district school
166superintendent of the complainant's district and the complainant
167with a fact-finding report that may include recommendations to
168the parties or a proposed resolution of the complaint. The fact-
169finding report shall be presumed admissible in any subsequent or
170related administrative or judicial review.
171     5.  If the Department of Education determines that
172reasonable grounds exist to believe that an unlawful reprisal
173has occurred, is occurring, or is to be taken, and is unable to
174conciliate a complaint within 60 days after receipt of the fact-
175finding report, the Department of Education shall terminate the
176investigation. Upon termination of any investigation, the
177Department of Education shall notify the complainant and the
178district school superintendent of the termination of the
179investigation, providing a summary of relevant facts found
180during the investigation and the reasons for terminating the
181investigation. A written statement under this paragraph is
182presumed admissible as evidence in any judicial or
183administrative proceeding.
184     6.  The Department of Education shall either contract with
185the Division of Administrative Hearings under s. 120.65, or
186otherwise provide for a complaint for which the Department of
187Education determines reasonable grounds exist to believe that an
188unlawful reprisal has occurred, is occurring, or is to be taken,
189and is unable to conciliate, to be heard by a panel of impartial
190persons. Upon hearing the complaint, the panel shall make
191findings of fact and conclusions of law for a final decision by
192the Department of Education.
193
194It shall be an affirmative defense to any action brought
195pursuant to this section that the adverse action was predicated
196upon grounds other than, and would have been taken absent, the
197employee's exercise of rights protected by this section.
198     (b)  In any action brought under this section for which it
199is determined reasonable grounds exist to believe that an
200unlawful reprisal has occurred, is occurring, or is to be taken,
201the relief shall include the following:
202     1.  Reinstatement of the employee to the same position held
203before the unlawful reprisal was commenced, or to an equivalent
204position, or payment of reasonable front pay as alternative
205relief.
206     2.  Reinstatement of the employee's full fringe benefits
207and seniority rights, as appropriate.
208     3.  Compensation, if appropriate, for lost wages, benefits,
209or other lost remuneration caused by the unlawful reprisal.
210     4.  Payment of reasonable costs, including attorney's fees,
211to a substantially prevailing employee, or to the prevailing
212employer if the employee filed a frivolous action in bad faith.
213     5.  Issuance of an injunction, if appropriate, by a court
214of competent jurisdiction.
215     6.  Temporary reinstatement to the employee's former
216position or to an equivalent position, pending the final outcome
217of the complaint, if it is determined that the action was not
218made in bad faith or for a wrongful purpose, and did not occur
219after a district school board's initiation of a personnel action
220against the employee that includes documentation of the
221employee's violation of a disciplinary standard or performance
222deficiency.
223     (5)  SPONSOR; DUTIES.--
224     (a)  Sponsoring entities.--
225     1.  A district school board may sponsor a charter school in
226the county over which the district school board has
227jurisdiction.
228     2.  A state university may grant a charter to a lab school
229created under s. 1002.32 and shall be considered to be the
230school's sponsor. Such school shall be considered a charter lab
231school.
232     (b)  Sponsor duties.--
233     1.  The sponsor shall monitor and review the charter school
234in its progress toward the goals established in the charter.
235     2.  The sponsor shall monitor the revenues and expenditures
236of the charter school.
237     3.  The sponsor may approve a charter for a charter school
238before the applicant has secured space, equipment, or personnel,
239if the applicant indicates approval is necessary for it to raise
240working funds capital.
241     4.  The sponsor's policies shall not apply to a charter
242school unless mutually agreed to by both the sponsor and the
243charter school.
244     5.  The sponsor shall ensure that the charter is innovative
245and consistent with the state education goals established by s.
2461000.03(5).
247     6.  The sponsor shall ensure that the charter school
248participates in the state's education accountability system. If
249a charter school falls short of performance measures included in
250the approved charter, the sponsor shall report such shortcomings
251to the Department of Education.
252     7.  The sponsor shall not impose additional reporting
253requirements on a charter school without providing reasonable
254and specific justification in writing to the charter school.
255
256A community college may work with the school district or school
257districts in its designated service area to develop charter
258schools that offer secondary education. These charter schools
259must include an option for students to receive an associate
260degree upon high school graduation. District school boards shall
261cooperate with and assist the community college on the charter
262application. Community college applications for charter schools
263are not subject to the time deadlines outlined in subsection (6)
264and may be approved by the district school board at any time
265during the year. Community colleges shall not report FTE for any
266students who receive FTE funding through the Florida Education
267Finance Program.
268     (6)  APPLICATION PROCESS AND REVIEW.--Charter school
269Beginning September 1, 2003, applications are subject to the
270following requirements:
271     (a)  A person or entity wishing to open a charter school
272shall prepare an application that:
273     1.  Demonstrates how the school will use the guiding
274principles and meet the statutorily defined purpose of a charter
275school.
276     2.  Provides a detailed curriculum plan that illustrates
277how students will be provided services to attain the Sunshine
278State Standards.
279     3.  Contains goals and objectives for improving student
280learning and measuring that improvement. These goals and
281objectives must indicate how much academic improvement students
282are expected to show each year, how success will be evaluated,
283and the specific results to be attained through instruction.
284     4.  Describes the reading curriculum and differentiated
285strategies that will be used for students reading at grade level
286or higher and a separate curriculum and strategies for students
287who are reading below grade level. A sponsor shall deny a
288charter if the school does not propose a reading curriculum that
289is consistent with effective teaching strategies that are
290grounded in scientifically based reading research.
291     5.  Contains an annual financial plan for each year
292requested by the charter for operation of the school for up to 5
293years. This plan must contain anticipated fund balances based on
294revenue projections, a spending plan based on projected revenues
295and expenses, and a description of controls that will safeguard
296finances and projected enrollment trends.
297     (b)  A district school board shall receive and review all
298applications for a charter school. Beginning with the 2007-2008
299school year, a district school board shall receive and consider
300charter school applications received on or before August
301September 1 of each calendar year for charter schools to be
302opened at the beginning of the school district's next school
303year, or to be opened at a time agreed to by the applicant and
304the district school board. A district school board may receive
305applications later than this date if it chooses. A sponsor may
306not charge an applicant for a charter any fee for the processing
307or consideration of an application, and a sponsor may not base
308its consideration or approval of an application upon the promise
309of future payment of any kind.
310     1.  In order to facilitate an accurate budget projection
311process, a district school board shall be held harmless for FTE
312students who are not included in the FTE projection due to
313approval of charter school applications after the FTE projection
314deadline. In a further effort to facilitate an accurate budget
315projection, within 15 calendar days after receipt of a charter
316school application, a district school board or other sponsor
317shall report to the Department of Education the name of the
318applicant entity, the proposed charter school location, and its
319projected FTE.
320     2.  In order to ensure fiscal responsibility, an
321application for a charter school shall include a full accounting
322of expected assets, a projection of expected sources and amounts
323of income, including income derived from projected student
324enrollments and from community support, and an expense
325projection that includes full accounting of the costs of
326operation, including start-up costs.
327     3.  A district school board shall by a majority vote
328approve or deny an application no later than 60 calendar days
329after the application is received, unless the district school
330board and the applicant mutually agree in writing to temporarily
331postpone the vote to a specific date, at which time the district
332school board shall by a majority vote approve or deny the
333application. If the district school board fails to act on the
334application, an applicant may appeal to the State Board of
335Education as provided in paragraph (c). If an application is
336denied, the district school board shall, within 10 calendar
337days, articulate in writing the specific reasons for based upon
338good cause supporting its denial of the charter application and
339shall provide the letter of denial and supporting documentation
340to the applicant and to the Department of Education supporting
341those reasons.
342     4.  For budget projection purposes, the district school
343board or other sponsor shall report to the Department of
344Education the approval or denial of a charter application within
34510 calendar days after such approval or denial. In the event of
346approval, the report to the Department of Education shall
347include the final projected FTE for the approved charter school.
348     5.  Upon approval of a charter application, the initial
349startup shall commence with the beginning of the public school
350calendar for the district in which the charter is granted unless
351the sponsor district school board allows a waiver of this
352provision for good cause.
353     (c)  An applicant may appeal any denial of that applicant's
354application or failure to act on an application to the State
355Board of Education no later than 30 calendar days after receipt
356of the district school board's decision or failure to act and
357shall notify the district school board of its appeal. Any
358response of the district school board shall be submitted to the
359State Board of Education within 30 calendar days after
360notification of the appeal. Upon receipt of notification from
361the State Board of Education that a charter school applicant is
362filing an appeal, the Commissioner of Education shall convene a
363meeting of the Charter School Appeal Commission to study and
364make recommendations to the State Board of Education regarding
365its pending decision about the appeal. The commission shall
366forward its recommendation to the state board no later than 7
367calendar days prior to the date on which the appeal is to be
368heard. The State Board of Education shall by majority vote
369accept or reject the decision of the district school board no
370later than 90 calendar days after an appeal is filed in
371accordance with State Board of Education rule. The Charter
372School Appeal Commission may reject an appeal submission for
373failure to comply with procedural rules governing the appeals
374process. The rejection shall describe the submission errors. The
375appellant may have up to 15 calendar days from notice of
376rejection to resubmit an appeal that meets requirements of State
377Board of Education rule. An application for appeal submitted
378subsequent to such rejection shall be considered timely if the
379original appeal was filed within 30 calendar days after receipt
380of notice of the specific reasons for the district school
381board's denial of the charter application. The State Board of
382Education shall remand the application to the district school
383board with its written decision that the district school board
384approve or deny the application. The district school board shall
385implement the decision of the State Board of Education. The
386decision of the State Board of Education is not subject to the
387provisions of the Administrative Procedure Act, chapter 120.
388     (d)  The district school board shall act upon the decision
389of the State Board of Education within 30 calendar days after it
390is received. The State Board of Education's decision is a final
391action subject to judicial review in the district court of
392appeal.
393     (e)1.  A Charter School Appeal Commission is established to
394assist the commissioner and the State Board of Education with a
395fair and impartial review of appeals by applicants whose charter
396applications have been denied, whose charter contracts have not
397been renewed, or whose charter contracts have been terminated by
398their sponsors, or whose disputes over contract negotiations
399have not been resolved through mediation.
400     2.  The Charter School Appeal Commission may receive copies
401of the appeal documents forwarded to the State Board of
402Education, review the documents, gather other applicable
403information regarding the appeal, and make a written
404recommendation to the commissioner. The recommendation must
405state whether the appeal should be upheld or denied and include
406the reasons for the recommendation being offered. The
407commissioner shall forward the recommendation to the State Board
408of Education no later than 7 calendar days prior to the date on
409which the appeal is to be heard. The state board must consider
410the commission's recommendation in making its decision, but is
411not bound by the recommendation. The decision of the Charter
412School Appeal Commission is not subject to the provisions of the
413Administrative Procedure Act, chapter 120.
414     3.  The commissioner shall appoint the members of the
415Charter School Appeal Commission. Members shall serve without
416compensation but may be reimbursed for travel and per diem
417expenses in conjunction with their service. One-half of the
418members must represent currently operating charter schools, and
419one-half of the members must represent school districts. The
420commissioner or a named designee shall chair the Charter School
421Appeal Commission.
422     4.  The chair shall convene meetings of the commission and
423shall ensure that the written recommendations are completed and
424forwarded in a timely manner. In cases where the commission
425cannot reach a decision, the chair shall make the written
426recommendation with justification, noting that the decision was
427rendered by the chair.
428     5.  Commission members shall thoroughly review the
429materials presented to them from the appellant and the sponsor.
430The commission may request information to clarify the
431documentation presented to it. In the course of its review, the
432commission may facilitate the postponement of an appeal in those
433cases where additional time and communication may negate the
434need for a formal appeal and both parties agree, in writing, to
435postpone the appeal to the State Board of Education. A new date
436certain for the appeal shall then be set based upon the rules
437and procedures of the State Board of Education. Commission
438members shall provide a written recommendation to the state
439board as to whether the appeal should be upheld or denied. A
440fact-based justification for the recommendation must be
441included. The chair must ensure that the written recommendation
442is submitted to the State Board of Education members no later
443than 7 calendar days prior to the date on which the appeal is to
444be heard. Both parties in the case shall also be provided a copy
445of the recommendation.
446     (f)  The Department of Education shall offer or arrange for
447training and technical assistance to charter school applicants
448in developing business plans and estimating costs and income.
449This assistance shall address estimating startup costs,
450projecting enrollment, and identifying the types and amounts of
451state and federal financial assistance the charter school will
452be eligible to receive. The department of Education may provide
453other technical assistance to an applicant upon written request.
454     (g)  In considering charter applications for a lab school,
455a state university shall consult with the district school board
456of the county in which the lab school is located. The decision
457of a state university may be appealed pursuant to the procedure
458established in this subsection.
459     (h)  The terms and conditions for the operation of a
460charter school shall be set forth by the sponsor and the
461applicant in a written contractual agreement, called a charter.
462The sponsor shall not impose unreasonable rules or regulations
463that violate the intent of giving charter schools greater
464flexibility to meet educational goals. The applicant and sponsor
465shall have 60 days to provide an initial proposed charter
466contract to the charter school. The applicant and the sponsor
467shall have 75 days thereafter to negotiate and notice the
468charter contract for final approval by the sponsor unless both
469parties agree to an extension 6 months in which to mutually
470agree to the provisions of the charter. The proposed charter
471contract shall be provided to the charter school at least 7
472calendar days prior to the date of the meeting at which the
473charter is scheduled to be voted upon by the sponsor. The
474Department of Education shall provide mediation services for any
475dispute regarding this section subsequent to the approval of a
476charter application and for any dispute relating to the approved
477charter, except disputes regarding charter school application
478denials. If the Commissioner of Education determines that the
479dispute cannot be settled through mediation, the dispute may be
480appealed to an administrative law judge appointed by the
481Division of Administrative Hearings. The administrative law
482judge may rule on issues of equitable treatment of the charter
483school as a public school, whether proposed provisions of the
484charter violate the intended flexibility granted charter schools
485by statute, or on any other matter regarding this section except
486a charter school application denial, a charter termination, or a
487charter nonrenewal and shall award the prevailing party
488reasonable attorney's fees and costs incurred to be paid by the
489losing party. The costs of the administrative hearing shall be
490paid by the party whom the administrative law judge rules
491against.
492     (7)  CHARTER.--The major issues involving the operation of
493a charter school shall be considered in advance and written into
494the charter. The charter shall be signed by the governing body
495of the charter school and the sponsor, following a public
496hearing to ensure community input.
497     (a)  The charter shall address, and criteria for approval
498of the charter shall be based on:
499     1.  The school's mission, the students to be served, and
500the ages and grades to be included.
501     2.  The focus of the curriculum, the instructional methods
502to be used, any distinctive instructional techniques to be
503employed, and identification and acquisition of appropriate
504technologies needed to improve educational and administrative
505performance which include a means for promoting safe, ethical,
506and appropriate uses of technology which comply with legal and
507professional standards. The charter shall ensure that reading is
508a primary focus of the curriculum and that resources are
509provided to identify and provide specialized instruction for
510students who are reading below grade level. The curriculum and
511instructional strategies for reading must be consistent with the
512Sunshine State Standards and grounded in scientifically based
513reading research.
514     3.  The current incoming baseline standard of student
515academic achievement, the outcomes to be achieved, and the
516method of measurement that will be used. The criteria listed in
517this subparagraph shall include a detailed description for each
518of the following:
519     a.  How the baseline student academic achievement levels
520and prior rates of academic progress will be established.
521     b.  How these baseline rates will be compared to rates of
522academic progress achieved by these same students while
523attending the charter school.
524     c.  To the extent possible, how these rates of progress
525will be evaluated and compared with rates of progress of other
526closely comparable student populations.
527
528The district school board is required to provide academic
529student performance data to charter schools for each of their
530students coming from the district school system, as well as
531rates of academic progress of comparable student populations in
532the district school system.
533     4.  The methods used to identify the educational strengths
534and needs of students and how well educational goals and
535performance standards are met by students attending the charter
536school. Included in the methods is a means for the charter
537school to ensure accountability to its constituents by analyzing
538student performance data and by evaluating the effectiveness and
539efficiency of its major educational programs. Students in
540charter schools shall, at a minimum, participate in the
541statewide assessment program created under s. 1008.22.
542     5.  In secondary charter schools, a method for determining
543that a student has satisfied the requirements for graduation in
544s. 1003.43.
545     6.  A method for resolving conflicts between the governing
546body of the charter school and the sponsor.
547     7.  The admissions procedures and dismissal procedures,
548including the school's code of student conduct.
549     8.  The ways by which the school will achieve a
550racial/ethnic balance reflective of the community it serves or
551within the racial/ethnic range of other public schools in the
552same school district.
553     9.  The financial and administrative management of the
554school, including a reasonable demonstration of the professional
555experience or competence of those individuals or organizations
556applying to operate the charter school or those hired or
557retained to perform such professional services and the
558description of clearly delineated responsibilities and the
559policies and practices needed to effectively manage the charter
560school. A description of internal audit procedures and
561establishment of controls to ensure that financial resources are
562properly managed must be included. Both public sector and
563private sector professional experience shall be equally valid in
564such a consideration.
565     10.  The asset and liability projections required in the
566application which are incorporated into the charter and which
567shall be compared with information provided in the annual report
568of the charter school. The charter shall ensure that, if a
569charter school internal audit or annual financial audit reveals
570a state of financial emergency as defined in s. 218.503 or
571deficit financial position, the auditors are required to notify
572the charter school governing board, the sponsor, and the
573Department of Education. The internal auditor shall report such
574findings in the form of an exit interview to the principal or
575the principal administrator of the charter school and the chair
576of the governing board within 7 working days after finding the
577state of financial emergency or deficit position. A final report
578shall be provided to the entire governing board, the sponsor,
579and the Department of Education within 14 working days after the
580exit interview. When a charter school is in a state of financial
581emergency, the charter school shall file a detailed financial
582recovery plan with the sponsor. The department, with the
583involvement of both sponsors and charter schools, shall
584establish guidelines for developing such plans.
585     11.  A description of procedures that identify various
586risks and provide for a comprehensive approach to reduce the
587impact of losses; plans to ensure the safety and security of
588students and staff; plans to identify, minimize, and protect
589others from violent or disruptive student behavior; and the
590manner in which the school will be insured, including whether or
591not the school will be required to have liability insurance,
592and, if so, the terms and conditions thereof and the amounts of
593coverage.
594     12.  The term of the charter which shall provide for
595cancellation of the charter if insufficient progress has been
596made in attaining the student achievement objectives of the
597charter and if it is not likely that such objectives can be
598achieved before expiration of the charter. The initial term of a
599charter shall be for 3, 4, or 5 years. In order to facilitate
600access to long-term financial resources for charter school
601construction, charter schools that are operated by a
602municipality or other public entity as provided by law are
603eligible for up to a 15-year charter, subject to approval by the
604district school board. A charter lab school is eligible for a
605charter for a term of up to 15 years. In addition, to facilitate
606access to long-term financial resources for charter school
607construction, charter schools that are operated by a private,
608not-for-profit, s. 501(c)(3) status corporation are eligible for
609up to a 15-year 10-year charter, subject to approval by the
610district school board. Such long-term charters remain subject to
611annual review and may be terminated during the term of the
612charter, but only for specific good cause according to the
613provisions set forth in subsection (8).
614     13.  The facilities to be used and their location.
615     14.  The qualifications to be required of the teachers and
616the potential strategies used to recruit, hire, train, and
617retain qualified staff to achieve best value.
618     15.  The governance structure of the school, including the
619status of the charter school as a public or private employer as
620required in paragraph (12)(i).
621     16.  A timetable for implementing the charter which
622addresses the implementation of each element thereof and the
623date by which the charter shall be awarded in order to meet this
624timetable.
625     17.  In the case of an existing public school being
626converted to charter status, alternative arrangements for
627current students who choose not to attend the charter school and
628for current teachers who choose not to teach in the charter
629school after conversion in accordance with the existing
630collective bargaining agreement or district school board rule in
631the absence of a collective bargaining agreement. However,
632alternative arrangements shall not be required for current
633teachers who choose not to teach in a charter lab school, except
634as authorized by the employment policies of the state university
635which grants the charter to the lab school.
636     (b)1.  A charter may be renewed every 5 school years,
637provided that a program review demonstrates that the criteria in
638paragraph (a) have been successfully accomplished and that none
639of the grounds for nonrenewal established by paragraph (8)(a)
640has been documented. In order to facilitate long-term financing
641for charter school construction, charter schools operating for a
642minimum of 2 years and demonstrating exemplary academic
643programming and fiscal management are eligible for a 15-year
644charter renewal. Such long-term charter is subject to annual
645review and may be terminated during the term of the charter.
646     2.  The 15-year charter renewal that may be granted
647pursuant to subparagraph 1. shall be granted to a charter school
648that has received a school grade of "A" or "B" pursuant to s.
6491008.34 in 3 of the past 4 years and is not in a state of
650financial emergency or deficit position as defined by this
651section. Such long-term charter is subject to annual review and
652may be terminated during the term of the charter pursuant to
653subsection (8).
654     (c)  A charter may be modified during its initial term or
655any renewal term upon the recommendation of the sponsor or the
656charter school governing board and the approval of both parties
657to the agreement.
658     (8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
659     (a)  At the end of the term of a charter, The sponsor may
660choose not to renew or may terminate the charter for any of the
661following grounds:
662     1.  Failure to participate in the state's education
663accountability system created in s. 1008.31, as required in this
664section, or failure to meet the requirements for student
665performance stated in the charter.
666     2.  Failure to meet generally accepted standards of fiscal
667management.
668     3.  Violation of law.
669     4.  Other good cause shown.
670     (b)  During the term of a charter, the sponsor may
671terminate the charter for any of the grounds listed in paragraph
672(a).
673     (b)(c)  At least 90 days prior to renewing or terminating a
674charter, the sponsor shall notify the governing body of the
675school of the proposed action in writing. The notice shall state
676in reasonable detail the grounds for the proposed action and
677stipulate that the school's governing body may, within 14
678calendar days after receiving the notice, request an informal
679hearing before the sponsor. The sponsor shall conduct the
680informal hearing within 30 calendar days after receiving a
681written request. The charter school's governing body may, within
68214 calendar days after receiving the sponsor's decision to
683terminate or refuse to renew the charter, appeal the decision
684pursuant to the procedure established in subsection (6).
685     (c)  If a charter is not renewed or is terminated pursuant
686to paragraph (b), the sponsor shall, within 10 calendar days,
687articulate in writing the specific reasons for its nonrenewal or
688termination of the charter and must provide the letter of
689nonrenewal or termination and documentation supporting the
690reasons to the charter school governing body, the charter school
691principal, and the Department of Education. The charter school's
692governing body may, within 30 calendar days after receiving the
693sponsor's final written decision to refuse to renew or to
694terminate the charter, appeal the decision pursuant to the
695procedure established in subsection (6).
696     (d)  A charter may be terminated immediately if the sponsor
697determines that good cause has been shown or if the health,
698safety, or welfare of the students is threatened. The sponsor
699shall notify in writing the charter school's governing body, the
700charter school principal, and the department if a charter is
701immediately terminated. The sponsor shall clearly identify the
702specific issues that resulted in the immediate termination and
703provide evidence of prior notification of issues resulting in
704the immediate termination when appropriate. The school district
705in which the charter school is located shall assume operation of
706the school under these circumstances. The charter school's
707governing board may, within 30 14 days after receiving the
708sponsor's decision to terminate the charter, appeal the decision
709pursuant to the procedure established in subsection (6).
710     (e)  When a charter is not renewed or is terminated, the
711school shall be dissolved under the provisions of law under
712which the school was organized, and any unencumbered public
713funds, except for capital outlay funds and federal charter
714school program grant funds, from the charter school shall revert
715to the sponsor district school board. Capital outlay funds
716provided pursuant to s. 1013.62 and federal charter school
717program grant funds that are unencumbered shall revert to the
718department to be redistributed among eligible charter schools.
719In the event a charter school is dissolved or is otherwise
720terminated, all district school board property and improvements,
721furnishings, and equipment purchased with public funds shall
722automatically revert to full ownership by the district school
723board, subject to complete satisfaction of any lawful liens or
724encumbrances. Any unencumbered public funds from the charter
725school, district school board property and improvements,
726furnishings, and equipment purchased with public funds, or
727financial or other records pertaining to the charter school, in
728the possession of any person, entity, or holding company, other
729than the charter school, shall be held in trust upon the
730district school board's request, until any appeal status is
731resolved.
732     (f)  If a charter is not renewed or is terminated, the
733charter school is responsible for all debts of the charter
734school. The district may not assume the debt from any contract
735for services made between the governing body of the school and a
736third party, except for a debt that is previously detailed and
737agreed upon in writing by both the district and the governing
738body of the school and that may not reasonably be assumed to
739have been satisfied by the district.
740     (g)  If a charter is not renewed or is terminated, a
741student who attended the school may apply to, and shall be
742enrolled in, another public school. Normal application deadlines
743shall be disregarded under such circumstances.
744     (9)  CHARTER SCHOOL REQUIREMENTS.--
745     (a)  A charter school shall be nonsectarian in its
746programs, admission policies, employment practices, and
747operations.
748     (b)  A charter school shall admit students as provided in
749subsection (10).
750     (c)  A charter school shall be accountable to its sponsor
751for performance as provided in subsection (7).
752     (d)  A charter school shall not charge tuition or
753registration fees, except those fees normally charged by other
754public schools. However, a charter lab school may charge a
755student activity and service fee as authorized by s. 1002.32(5).
756     (e)  A charter school shall meet all applicable state and
757local health, safety, and civil rights requirements.
758     (f)  A charter school shall not violate the
759antidiscrimination provisions of s. 1000.05.
760     (g)  A charter school shall provide for an annual financial
761audit in accordance with s. 218.39. Financial audits that reveal
762a state of financial emergency as defined in s. 218.503 and are
763conducted by a certified public accountant or auditor in
764accordance with s. 218.39 shall be provided to the governing
765body of the charter school within 7 working days after finding
766that a state of financial emergency exists. When a charter
767school is found to be in a state of financial emergency by a
768certified public accountant or auditor, the charter school must
769file a detailed financial recovery plan with the sponsor within
77030 days after receipt of the audit.
771     (h)  No organization shall hold more than 15 charters
772statewide.
773     (h)(i)  In order to provide financial information that is
774comparable to that reported for other public schools, charter
775schools are to maintain all financial records which constitute
776their accounting system:
777     1.  In accordance with the accounts and codes prescribed in
778the most recent issuance of the publication titled "Financial
779and Program Cost Accounting and Reporting for Florida Schools";
780or
781     2.  At the discretion of the charter school governing
782board, a charter school may elect to follow generally accepted
783accounting standards for not-for-profit organizations, but must
784reformat this information for reporting according to this
785paragraph.
786
787Charter schools shall are to provide annual financial report and
788program cost report information in the state-required formats
789for inclusion in district reporting in compliance with s.
7901011.60(1). Charter schools that are operated by a municipality
791or are a component unit of a parent nonprofit organization may
792use the accounting system of the municipality or the parent but
793must reformat this information for reporting according to this
794paragraph.
795     (i)(j)  The governing board of the charter school shall
796annually adopt and maintain an operating budget.
797     (j)(k)  The governing body of the charter school shall
798exercise continuing oversight over charter school operations.
799     (k)  The governing body of the charter school shall be
800responsible for:
801     1.  Ensuring that the charter school has retained the
802services of a certified public accountant or auditor for the
803annual financial audit, pursuant to paragraph (g), who shall
804submit the report to the governing body.
805     2.  Reviewing and approving the audit report, including
806audit findings and recommendations for the financial recovery
807plan.
808     3.  Monitoring a financial recovery plan in order to ensure
809compliance.
810     (l)  The governing body of the charter school shall report
811its progress annually to its sponsor, which shall forward the
812report to the Commissioner of Education at the same time as
813other annual school accountability reports. The Department of
814Education shall develop a uniform, on-line annual accountability
815report to be completed by charter schools. This report shall be
816easy to utilize and contain demographic information, student
817performance data, and financial accountability information. A
818charter school shall not be required to provide information and
819data that is duplicative and already in the possession of the
820department. The Department of Education shall include in its
821compilation a notation if a school failed to file its report by
822the deadline established by the department. The report shall
823include at least the following components:
824     1.  Student achievement performance data, including the
825information required for the annual school report and the
826education accountability system governed by ss. 1008.31 and
8271008.345. Charter schools are subject to the same accountability
828requirements as other public schools, including reports of
829student achievement information that links baseline student data
830to the school's performance projections identified in the
831charter. The charter school shall identify reasons for any
832difference between projected and actual student performance.
833     2.  Financial status of the charter school which must
834include revenues and expenditures at a level of detail that
835allows for analysis of the ability to meet financial obligations
836and timely repayment of debt.
837     3.  Documentation of the facilities in current use and any
838planned facilities for use by the charter school for instruction
839of students, administrative functions, or investment purposes.
840     4.  Descriptive information about the charter school's
841personnel, including salary and benefit levels of charter school
842employees, the proportion of instructional personnel who hold
843professional or temporary certificates, and the proportion of
844instructional personnel teaching in-field or out-of-field.
845     (m)  A charter school shall not levy taxes or issue bonds
846secured by tax revenues.
847     (n)  A charter school shall provide instruction for at
848least the number of days required by law for other public
849schools, and may provide instruction for additional days.
850     (o)  The director and a representative of the governing
851body of a charter school that has received a school grade of "D"
852under s. 1008.34(2) shall appear before the sponsor or the
853sponsor's staff at least once a year to present information
854concerning each contract component having noted deficiencies.
855The sponsor shall communicate at the meeting, and in writing to
856the director, the services provided to the school to help the
857school address its deficiencies.
858     (p)  Upon notification that a charter school receives a
859school grade of "D" for 2 consecutive years or a school grade of
860"F" under s. 1008.34(2), the charter school sponsor or the
861sponsor's staff shall require the director and a representative
862of the governing body to submit to the sponsor for approval a
863school improvement plan to raise student achievement and to
864implement the plan. The sponsor has the authority to approve a
865school improvement plan that the charter school will implement
866in the following school year. The sponsor may also consider the
867State Board of Education's recommended action pursuant to s.
8681008.33(1) as part of the school improvement plan. The
869Department of Education shall offer technical assistance and
870training to the charter school and its governing body and
871establish guidelines for developing, submitting, and approving
872such plans.
873     1.  If the charter school fails to improve its student
874performance from the year immediately prior to the
875implementation of the school improvement plan, the sponsor shall
876place the charter school on probation and shall require the
877charter school governing body to take one of the following
878corrective actions:
879     a.  Contract for the educational services of the charter
880school;
881     b.  Reorganize the school at the end of the school year
882under a new director or principal who is authorized to hire new
883staff and implement a plan that addresses the causes of
884inadequate progress; or
885     c.  Reconstitute the charter school.
886     2.  A charter school that is placed on probation shall
887continue the corrective actions required under subparagraph 1.
888until the charter school improves its student performance from
889the year prior to the implementation of the school improvement
890plan.
891     3.  Notwithstanding any provision of this paragraph, the
892sponsor may terminate the charter at any time pursuant to the
893provisions of subsection (8).
894     (q)  The director and a representative of the governing
895body of a graded charter school that has submitted a school
896improvement plan or has been placed on probation under paragraph
897(p) shall appear before the sponsor or the sponsor's staff at
898least once a year to present information regarding the
899corrective strategies that are being implemented by the school
900pursuant to the school improvement plan. The sponsor shall
901communicate at the meeting, and in writing to the director, the
902services provided to the school to help the school address its
903deficiencies.
904     (10)  ELIGIBLE STUDENTS.--
905     (a)  A charter school shall be open to any student covered
906in an interdistrict agreement or residing in the school district
907in which the charter school is located; however, in the case of
908a charter lab school, the charter lab school shall be open to
909any student eligible to attend the lab school as provided in s.
9101002.32 or who resides in the school district in which the
911charter lab school is located. Any eligible student shall be
912allowed interdistrict transfer to attend a charter school when
913based on good cause.
914     (b)  The charter school shall enroll an eligible student
915who submits a timely application, unless the number of
916applications exceeds the capacity of a program, class, grade
917level, or building. In such case, all applicants shall have an
918equal chance of being admitted through a random selection
919process.
920     (c)  When a public school converts to charter status,
921enrollment preference shall be given to students who would have
922otherwise attended that public school. The district school board
923shall consult and negotiate with the conversion charter school
924every 3 years to determine whether realignment of the conversion
925charter school's attendance zone is appropriate in order to
926ensure that students residing closest to the charter school are
927provided with an enrollment preference.
928     (d)  A charter school may give enrollment preference to the
929following student populations:
930     1.  Students who are siblings of a student enrolled in the
931charter school.
932     2.  Students who are the children of a member of the
933governing board of the charter school.
934     3.  Students who are the children of an employee of the
935charter school.
936     (e)  A charter school may limit the enrollment process only
937to target the following student populations:
938     1.  Students within specific age groups or grade levels.
939     2.  Students considered at risk of dropping out of school
940or academic failure. Such students shall include exceptional
941education students.
942     3.  Students enrolling in a charter school-in-the-workplace
943or charter school-in-a-municipality established pursuant to
944subsection (15).
945     4.  Students residing within a reasonable distance of the
946charter school, as described in paragraph (20)(c). Such students
947shall be subject to a random lottery and to the racial/ethnic
948balance provisions described in subparagraph (7)(a)8. or any
949federal provisions that require a school to achieve a
950racial/ethnic balance reflective of the community it serves or
951within the racial/ethnic range of other public schools in the
952same school district.
953     5.  Students who meet reasonable academic, artistic, or
954other eligibility standards established by the charter school
955and included in the charter school application and charter or,
956in the case of existing charter schools, standards that are
957consistent with the school's mission and purpose. Such standards
958shall be in accordance with current state law and practice in
959public schools and may not discriminate against otherwise
960qualified individuals.
961     6.  Students articulating from one charter school to
962another pursuant to an articulation agreement between the
963charter schools that has been approved by the sponsor.
964     (f)  Students with handicapping conditions and students
965served in English for Speakers of Other Languages programs shall
966have an equal opportunity of being selected for enrollment in a
967charter school.
968     (g)  A student may withdraw from a charter school at any
969time and enroll in another public school as determined by
970district school board rule.
971     (h)  The capacity of the charter school shall be determined
972annually by the governing board, in conjunction with the
973sponsor, of the charter school in consideration of the factors
974identified in this subsection.
975     (11)  PARTICIPATION IN INTERSCHOLASTIC EXTRACURRICULAR
976ACTIVITIES.--A charter school student is eligible to participate
977in an interscholastic extracurricular activity at the public
978school to which the student would be otherwise assigned to
979attend pursuant to s. 1006.15(3)(d).
980     (12)  EMPLOYEES OF CHARTER SCHOOLS.--
981     (a)  A charter school shall select its own employees. A
982charter school may contract with its sponsor for the services of
983personnel employed by the sponsor.
984     (b)  Charter school employees shall have the option to
985bargain collectively. Employees may collectively bargain as a
986separate unit or as part of the existing district collective
987bargaining unit as determined by the structure of the charter
988school.
989     (c)  The employees of a conversion charter school shall
990remain public employees for all purposes, unless such employees
991choose not to do so.
992     (d)  The teachers at a charter school may choose to be part
993of a professional group that subcontracts with the charter
994school to operate the instructional program under the auspices
995of a partnership or cooperative that they collectively own.
996Under this arrangement, the teachers would not be public
997employees.
998     (e)  Employees of a school district may take leave to
999accept employment in a charter school upon the approval of the
1000district school board. While employed by the charter school and
1001on leave that is approved by the district school board, the
1002employee may retain seniority accrued in that school district
1003and may continue to be covered by the benefit programs of that
1004school district, if the charter school and the district school
1005board agree to this arrangement and its financing. School
1006districts shall not require resignations of teachers desiring to
1007teach in a charter school. This paragraph shall not prohibit a
1008district school board from approving alternative leave
1009arrangements consistent with chapter 1012.
1010     (f)  Teachers employed by or under contract to a charter
1011school shall be certified as required by chapter 1012. A charter
1012school governing board may employ or contract with skilled
1013selected noncertified personnel to provide instructional
1014services or to assist instructional staff members as education
1015paraprofessionals in the same manner as defined in chapter 1012,
1016and as provided by State Board of Education rule for charter
1017school governing boards. A charter school may not knowingly
1018employ an individual to provide instructional services or to
1019serve as an education paraprofessional if the individual's
1020certification or licensure as an educator is suspended or
1021revoked by this or any other state. A charter school may not
1022knowingly employ an individual who has resigned from a school
1023district in lieu of disciplinary action with respect to child
1024welfare or safety, or who has been dismissed for just cause by
1025any school district with respect to child welfare or safety. The
1026qualifications of teachers shall be disclosed to parents.
1027     (g)  A charter school shall employ or contract with
1028employees who have undergone background screening as provided in
1029s. 1012.32. Members of the governing board of the charter school
1030shall also undergo background screening in a manner similar to
1031that provided in s. 1012.32.
1032     (h)  For the purposes of tort liability, the governing body
1033and employees of a charter school shall be governed by s.
1034768.28.
1035     (i)  A charter school shall organize as, or be operated by,
1036a nonprofit organization. A charter school may be operated by a
1037municipality or other public entity as provided for by law. As
1038such, the charter school may be either a private or a public
1039employer. As a public employer, a charter school may participate
1040in the Florida Retirement System upon application and approval
1041as a "covered group" under s. 121.021(34). If a charter school
1042participates in the Florida Retirement System, the charter
1043school employees shall be compulsory members of the Florida
1044Retirement System. As either a private or a public employer, a
1045charter school may contract for services with an individual or
1046group of individuals who are organized as a partnership or a
1047cooperative. Individuals or groups of individuals who contract
1048their services to the charter school are not public employees.
1049     (13)  CHARTER SCHOOL COOPERATIVES.--Charter schools may
1050enter into cooperative agreements to form charter school
1051cooperative organizations that may provide the following
1052services: charter school planning and development, direct
1053instructional services, and contracts with charter school
1054governing boards to provide personnel administrative services,
1055payroll services, human resource management, evaluation and
1056assessment services, teacher preparation, and professional
1057development.
1058     (14)  CHARTER SCHOOL FINANCIAL ARRANGEMENTS;
1059INDEMNIFICATION OF THE STATE AND SCHOOL DISTRICT; CREDIT OR
1060TAXING POWER NOT TO BE PLEDGED.--Any arrangement entered into to
1061borrow or otherwise secure funds for a charter school authorized
1062in this section from a source other than the state or a school
1063district shall indemnify the state and the school district from
1064any and all liability, including, but not limited to, financial
1065responsibility for the payment of the principal or interest. Any
1066loans, bonds, or other financial agreements are not obligations
1067of the state or the school district but are obligations of the
1068charter school authority and are payable solely from the sources
1069of funds pledged by such agreement. The credit or taxing power
1070of the state or the school district shall not be pledged and no
1071debts shall be payable out of any moneys except those of the
1072legal entity in possession of a valid charter approved by a
1073district school board pursuant to this section.
1074     (15)  CHARTER SCHOOLS-IN-THE-WORKPLACE; CHARTER SCHOOLS-IN-
1075A-MUNICIPALITY.--
1076     (a)  In order to increase business partnerships in
1077education, to reduce school and classroom overcrowding
1078throughout the state, and to offset the high costs for
1079educational facilities construction, the Legislature intends to
1080encourage the formation of business partnership schools or
1081satellite learning centers and municipal-operated schools
1082through charter school status.
1083     (b)  A charter school-in-the-workplace may be established
1084when a business partner provides the school facility to be used;
1085enrolls students based upon a random lottery that involves all
1086of the children of employees of that business or corporation who
1087are seeking enrollment, as provided for in subsection (10); and
1088enrolls students according to the racial/ethnic balance
1089provisions described in subparagraph (7)(a)8. Any portion of a
1090facility used for a public charter school shall be exempt from
1091ad valorem taxes, as provided for in s. 1013.54, for the
1092duration of its use as a public school.
1093     (c)  A charter school-in-a-municipality designation may be
1094granted to a municipality that possesses a charter; enrolls
1095students based upon a random lottery that involves all of the
1096children of the residents of that municipality who are seeking
1097enrollment, as provided for in subsection (10); and enrolls
1098students according to the racial/ethnic balance provisions
1099described in subparagraph (7)(a)8. When a municipality has
1100submitted charter applications for the establishment of a
1101charter school feeder pattern, consisting of elementary, middle,
1102and senior high schools, and each individual charter application
1103is approved by the district school board, such schools shall
1104then be designated as one charter school for all purposes listed
1105pursuant to this section. Any portion of the land and facility
1106used for a public charter school shall be exempt from ad valorem
1107taxes, as provided for in s. 1013.54, for the duration of its
1108use as a public school.
1109     (d)  As used in this subsection, the terms "business
1110partner" or "municipality" may include more than one business or
1111municipality to form a charter school-in-the-workplace or
1112charter school-in-a-municipality.
1113     (16)  EXEMPTION FROM STATUTES.--
1114     (a)  A charter school shall operate in accordance with its
1115charter and shall be exempt from all statutes in chapters 1000-
11161013. However, a charter school shall be in compliance with the
1117following statutes in chapters 1000-1013:
1118     1.  Those statutes specifically applying to charter
1119schools, including this section.
1120     2.  Those statutes pertaining to the student assessment
1121program and school grading system.
1122     3.  Those statutes pertaining to the provision of services
1123to students with disabilities.
1124     4.  Those statutes pertaining to civil rights, including s.
11251000.05, relating to discrimination.
1126     5.  Those statutes pertaining to student health, safety,
1127and welfare.
1128     (b)  Additionally, a charter school shall be in compliance
1129with the following statutes:
1130     1.  Section 286.011, relating to public meetings and
1131records, public inspection, and criminal and civil penalties.
1132     2.  Chapter 119, relating to public records.
1133     (17)  FUNDING.--Students enrolled in a charter school,
1134regardless of the sponsorship, shall be funded as if they are in
1135a basic program or a special program, the same as students
1136enrolled in other public schools in the school district. Funding
1137for a charter lab school shall be as provided in s. 1002.32.
1138     (a)  Each charter school shall report its student
1139enrollment to the district school board as required in s.
11401011.62, and in accordance with the definitions in s. 1011.61.
1141The district school board shall include each charter school's
1142enrollment in the district's report of student enrollment. All
1143charter schools submitting student record information required
1144by the Department of Education shall comply with the Department
1145of Education's guidelines for electronic data formats for such
1146data, and all districts shall accept electronic data that
1147complies with the Department of Education's electronic format.
1148     (b)  The basis for the agreement for funding students
1149enrolled in a charter school shall be the sum of the school
1150district's operating funds from the Florida Education Finance
1151Program as provided in s. 1011.62 and the General Appropriations
1152Act, including gross state and local funds, discretionary
1153lottery funds, and funds from the school district's current
1154operating discretionary millage levy; divided by total funded
1155weighted full-time equivalent students in the school district;
1156multiplied by the weighted full-time equivalent students for the
1157charter school. Charter schools whose students or programs meet
1158the eligibility criteria in law shall be entitled to their
1159proportionate share of categorical program funds included in the
1160total funds available in the Florida Education Finance Program
1161by the Legislature, including transportation. Total funding for
1162each charter school shall be recalculated during the year to
1163reflect the revised calculations under the Florida Education
1164Finance Program by the state and the actual weighted full-time
1165equivalent students reported by the charter school during the
1166full-time equivalent student survey periods designated by the
1167Commissioner of Education.
1168     (c)  If the district school board is providing programs or
1169services to students funded by federal funds, any eligible
1170students enrolled in charter schools in the school district
1171shall be provided federal funds for the same level of service
1172provided students in the schools operated by the district school
1173board. Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all
1174charter schools shall receive all federal funding for which the
1175school is otherwise eligible, including Title I funding, not
1176later than 5 months after the charter school first opens and
1177within 5 months after any subsequent expansion of enrollment.
1178     (d)  District school boards shall make every effort to
1179ensure that charter schools receive timely and efficient payment
1180and reimbursement to charter schools, including processing
1181paperwork required to access special state and federal funding
1182for which they may be eligible. The district school board may
1183distribute funds to a charter school for up to 3 months based on
1184the projected full-time equivalent student membership of the
1185charter school. Thereafter, the results of full-time equivalent
1186student membership surveys shall be used in adjusting the amount
1187of funds distributed monthly to the charter school for the
1188remainder of the fiscal year. The payment shall be issued no
1189later than 10 working days after the district school board
1190receives a distribution of state or federal funds. If a warrant
1191for payment is not issued within 10 30 working days after
1192receipt of funding by the district school board, the school
1193district shall pay to the charter school, in addition to the
1194amount of the scheduled disbursement, interest at a rate of 5 1
1195percent per month calculated on a daily basis on the unpaid
1196balance from the expiration of the 10 working days 30-day period
1197until such time as the warrant is issued. The Commissioner of
1198Education is authorized to withhold lottery funds from school
1199districts that repeatedly fail to make timely payments and
1200reimbursements.
1201     (e)  The State Board of Education is authorized to impose a
1202fine on or withhold lottery funds from a school district for any
1203violation of the procedural requirements for charter school
1204application, termination, or nonrenewal appeals regardless of
1205whether the violation affects the fairness of the appeal process
1206or the correctness of the action taken by the school district.
1207Prior to the imposition of a fine or the withholding of lottery
1208funds under this paragraph, the State Board of Education shall
1209provide the school district with notice of the amount of the
1210proposed fine or lottery funds to be withheld and an opportunity
1211to be heard at a subsequent meeting of the State Board of
1212Education. The funds collected for fines under this paragraph
1213shall be taken from the school district's administrative fee
1214under paragraph (20)(a) and disbursed to the prevailing charter
1215school appellant under this section or, if the charter school
1216appellant's appeal is denied, in equal amounts to each of the
1217charter schools within the school district. The imposition of a
1218fine under this paragraph shall not exceed $10,000 and is a
1219final action subject to judicial review in the district court of
1220appeals.
1221     (18)  FACILITIES.--
1222     (a)  A startup charter school shall utilize facilities
1223which comply with the Florida Building Code pursuant to chapter
1224553 except for the State Requirements for Educational
1225Facilities. Conversion charter schools shall utilize facilities
1226that comply with the State Requirements for Educational
1227Facilities, provided that the school district and the charter
1228school have entered into a mutual management plan with
1229sufficient funding from the school district to comply with the
1230State Requirements for Educational Facilities. Charter schools,
1231with the exception of conversion charter schools, are not
1232required to comply, but may choose to comply, with the State
1233Requirements for Educational Facilities of the Florida Building
1234Code adopted pursuant to s. 1013.37. The local governing
1235authority shall not adopt or impose local building requirements
1236or restrictions that are more stringent than those found in the
1237Florida Building Code. The agency having jurisdiction for
1238inspection of a facility and issuance of a certificate of
1239occupancy shall be the local municipality or, if in an
1240unincorporated area, the county governing authority.
1241     (b)  A charter school shall utilize facilities that comply
1242with the Florida Fire Prevention Code, pursuant to s. 633.025,
1243as adopted by the authority in whose jurisdiction the facility
1244is located as provided in paragraph (a).
1245     (c)  Any facility, or portion thereof, used to house a
1246charter school whose charter has been approved by the sponsor
1247and the governing board, pursuant to subsection (7), shall be
1248exempt from ad valorem taxes pursuant to s. 196.1983. Library,
1249community service, museum, performing arts, theatre, cinema,
1250church, community college, college, and university facilities
1251may provide space to charter schools within their facilities
1252under their preexisting zoning and land use designations.
1253     (d)  Charter school facilities are exempt from assessments
1254of fees for building permits, except as provided in s. 553.80,
1255fees and for building and occupational licenses, and from
1256assessments of impact fees or service availability fees.
1257     (e)  If a district school board facility or property is
1258available because it is surplus, marked for disposal, or
1259otherwise unused, it shall be provided for a charter school's
1260use on the same basis as it is made available to other public
1261schools in the district. A charter school receiving property
1262from the school district may not sell or dispose of such
1263property without written permission of the school district.
1264Similarly, for an existing public school converting to charter
1265status, no rental or leasing fee for the existing facility or
1266for the property normally inventoried to the conversion school
1267may be charged by the district school board to the parents and
1268teachers organizing the charter school. The charter school
1269organizers shall agree to reasonable maintenance provisions in
1270order to maintain the facility in a manner similar to district
1271school board standards. The Public Education Capital Outlay
1272maintenance funds or any other maintenance funds generated by
1273the facility operated as a conversion school shall remain with
1274the conversion school.
1275     (f)  To the extent that charter school facilities are
1276specifically created to mitigate the educational impact created
1277by the development of new residential dwelling units, pursuant
1278to subparagraph (2)(c)4., some of or all of the educational
1279impact fees required to be paid in connection with the new
1280residential dwelling units may be designated instead for the
1281construction of the charter school facilities that will mitigate
1282the student station impact. Such facilities shall be built to
1283the State Requirements for Educational Facilities and shall be
1284owned by a public or nonprofit entity. The local school district
1285retains the right to monitor and inspect such facilities to
1286ensure compliance with the State Requirements for Educational
1287Facilities. If a facility ceases to be used for public
1288educational purposes, either the facility shall revert to the
1289school district subject to any debt owed on the facility, or the
1290owner of the facility shall have the option to refund all
1291educational impact fees utilized for the facility to the school
1292district. The district and the owner of the facility may
1293contractually agree to another arrangement for the facilities if
1294the facilities cease to be used for educational purposes. The
1295owner of property planned or approved for new residential
1296dwelling units and the entity levying educational impact fees
1297shall enter into an agreement that designates the educational
1298impact fees that will be allocated for the charter school
1299student stations and that ensures the timely construction of the
1300charter school student stations concurrent with the expected
1301occupancy of the residential units. The application for use of
1302educational impact fees shall include an approved charter school
1303application. To assist the school district in forecasting
1304student station needs, the entity levying the impact fees shall
1305notify the affected district of any agreements it has approved
1306for the purpose of mitigating student station impact from the
1307new residential dwelling units.
1308     (g)  Each school district shall annually provide to the
1309Department of Education as part of its 5-year work plan the
1310number of existing vacant classrooms in each school that the
1311district does not intend to use or does not project will be
1312needed for educational purposes for the following school year.
1313The department may recommend that a district make such space
1314available to an appropriate charter school.
1315     (19)  CAPITAL OUTLAY FUNDING.--Charter schools are eligible
1316for capital outlay funds pursuant to s. 1013.62.
1317     (20)  SERVICES.--
1318     (a)  A sponsor shall provide certain administrative and
1319educational services to charter schools. These services shall
1320include contract management services; full-time equivalent and
1321data reporting services; exceptional student education
1322administration services; services related to eligibility and
1323reporting duties required to ensure that school lunch services
1324under the federal lunch program, consistent with the needs of
1325the charter school, are provided by the school district at the
1326request of the charter school; test administration services,
1327including payment of the costs of state-required or district-
1328required student assessments; processing of teacher certificate
1329data services; and information services, including equal access
1330to student information systems that are used by public schools
1331in the district in which the charter school is located. Student
1332performance data for each student in a charter school,
1333including, but not limited to, FCAT scores, standardized test
1334scores, previous public school student report cards, and student
1335performance measures, shall be provided by the sponsor to a
1336charter school in the same manner provided to other public
1337schools in the district. A total administrative fee for the
1338provision of such services shall be calculated based upon up to
13395 percent of the available funds defined in paragraph (17)(b)
1340for all students. However, a sponsor may only withhold up to a
13415-percent administrative fee for enrollment for up to and
1342including 500 students. For charter schools with a population of
1343501 or more students, the difference between the total
1344administrative fee calculation and the amount of the
1345administrative fee withheld may only be used for capital outlay
1346purposes specified in s. 1013.62(2). Sponsors shall not charge
1347charter schools any additional fees or surcharges for
1348administrative and educational services in addition to the
1349maximum 5-percent administrative fee withheld pursuant to this
1350paragraph.
1351     (b)  If goods and services are made available to the
1352charter school through the contract with the school district,
1353they shall be provided to the charter school at a rate no
1354greater than the district's actual cost unless mutually agreed
1355upon by the charter school and the sponsor in a contract
1356negotiated separately from the charter. When mediation has
1357failed to resolve disputes over contracted services or
1358contractual matters not included in the charter, an appeal may
1359be made for a dispute resolution hearing before the Charter
1360School Appeal Commission. To maximize the use of state funds,
1361school districts shall allow charter schools to participate in
1362the sponsor's bulk purchasing program if applicable.
1363     (c)  Transportation of charter school students shall be
1364provided by the charter school consistent with the requirements
1365of subpart I.E. of chapter 1006 and s. 1012.45. The governing
1366body of the charter school may provide transportation through an
1367agreement or contract with the district school board, a private
1368provider, or parents. The charter school and the sponsor shall
1369cooperate in making arrangements that ensure that transportation
1370is not a barrier to equal access for all students residing
1371within a reasonable distance of the charter school as determined
1372in its charter.
1373     (21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--The
1374Department of Education shall provide information to the public,
1375directly and through sponsors, both on how to form and operate a
1376charter school and on how to enroll in charter schools once they
1377are created. This information shall include a standard
1378application format, charter format, and charter renewal format
1379which shall include the information specified in subsection (7)
1380and shall be developed by consulting and negotiating with both
1381school districts and charter schools before implementation.
1382These formats shall This application format may be used as
1383guidelines by charter school sponsors chartering entities.
1384     (22)  CHARTER SCHOOL REVIEW PANEL AND LEGISLATIVE REVIEW.--
1385     (a)  The Department of Education shall staff and regularly
1386convene a Charter School Review Panel in order to review issues,
1387practices, and policies regarding charter schools. The
1388composition of the review panel shall include individuals with
1389experience in finance, administration, law, education, and
1390school governance, and individuals familiar with charter school
1391construction and operation. The panel shall include two
1392appointees each from the Commissioner of Education, the
1393President of the Senate, and the Speaker of the House of
1394Representatives. The Governor shall appoint three members of the
1395panel and shall designate the chair. Each member of the panel
1396shall serve a 1-year term, unless renewed by the office making
1397the appointment. The panel shall make recommendations to the
1398Legislature, to the Department of Education, to charter schools,
1399and to school districts for improving charter school operations
1400and oversight and for ensuring best business practices at and
1401fair business relationships with charter schools.
1402     (b)  The Legislature shall review the operation of charter
1403schools during the 2010 2005 Regular Session of the Legislature.
1404     (23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
1405of the annual report required by paragraph (9)(l), the
1406Department of Education shall provide to the State Board of
1407Education, the Commissioner of Education, the Governor, the
1408President of the Senate, and the Speaker of the House of
1409Representatives an analysis and comparison of the overall
1410performance of charter school students, to include all students
1411whose scores are counted as part of the statewide assessment
1412program, versus comparable public school students in the
1413district as determined by the statewide assessment program
1414currently administered in the school district, and other
1415assessments administered pursuant to s. 1008.22(3).
1416     (24)  RULEMAKING.--The Department of Education, after
1417consultation with school districts and charter school directors,
1418shall recommend that the State Board of Education adopt rules to
1419implement specific subsections of this section. Such rules shall
1420require minimum paperwork and shall not limit charter school
1421flexibility authorized by statute.
1422     Section 2.  Subsection (5) of section 218.39, Florida
1423Statutes, is amended to read:
1424     218.39  Annual financial audit reports.--
1425     (5)  At the conclusion of the audit, the auditor shall
1426discuss with the chair of each local governmental entity or the
1427chair's designee, or with the elected official of each county
1428agency or with the elected official's designee, or with the
1429chair of the district school board or the chair's designee, or
1430with the chair of the board of the charter school or the chair's
1431designee, or with the chair of the charter technical career
1432center or the chair's designee, as appropriate, all of the
1433auditor's comments that will be included in the audit report. If
1434the officer is not available to discuss the auditor's comments,
1435their discussion is presumed when the comments are delivered in
1436writing to his or her office. The auditor shall notify each
1437member of the governing body of a local governmental entity, or
1438district school board, or charter school for which deteriorating
1439financial conditions exist that may cause a condition described
1440in s. 218.503(1) to occur if actions are not taken to address
1441such conditions.
1442     Section 3.  Section 218.50, Florida Statutes, is amended to
1443read:
1444     218.50  Short title.--Sections 218.50-218.504 may be cited
1445as the "Local Governmental Entity, Charter School, and District
1446School Board Financial Emergencies Act."
1447     Section 4.  Section 218.501, Florida Statutes, is amended
1448to read:
1449     218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
1450     (1)  To promote the fiscal responsibility of local
1451governmental entities, charter schools, and district school
1452boards.
1453     (2)  To assist local governmental entities, charter
1454schools, and district school boards in providing essential
1455services without interruption and in meeting their financial
1456obligations.
1457     (3)  To assist local governmental entities, charter
1458schools, and district school boards through the improvement of
1459local financial management procedures.
1460     Section 5.  Subsections (1) and (2) of section 218.503,
1461Florida Statutes, are amended, a new subsection (4) is added,
1462and subsections (4) and (5) of that section are renumbered as
1463subsections (5) and (6), respectively, to read:
1464     218.503  Determination of financial emergency.--
1465     (1)  Local governmental entities, charter schools, and
1466district school boards shall be subject to review and oversight
1467by the Governor, charter school sponsor, or the Commissioner of
1468Education, as appropriate, when any one of the following
1469conditions occurs:
1470     (a)  Failure within the same fiscal year in which due to
1471pay short-term loans or failure to make bond debt service or
1472other long-term debt payments when due, as a result of a lack of
1473funds.
1474     (b)  Failure to pay uncontested claims from creditors
1475within 90 days after the claim is presented, as a result of a
1476lack of funds.
1477     (c)  Failure to transfer at the appropriate time, due to
1478lack of funds:
1479     1.  Taxes withheld on the income of employees; or
1480     2.  Employer and employee contributions for:
1481     a.  Federal social security; or
1482     b.  Any pension, retirement, or benefit plan of an
1483employee.
1484     (d)  Failure for one pay period to pay, due to lack of
1485funds:
1486     1.  Wages and salaries owed to employees; or
1487     2.  Retirement benefits owed to former employees.
1488     (e)  An unreserved or total fund balance or retained
1489earnings deficit, or unrestricted or total net assets deficit,
1490as reported on the balance sheet or statement of net assets on
1491the general purpose or fund financial statements, for which
1492sufficient resources of the local governmental entity, as
1493reported on the balance sheet or statement of net assets on the
1494general purpose or fund financial statements, are not available
1495to cover the deficit. Resources available to cover reported
1496deficits include net assets that are not otherwise restricted by
1497federal, state, or local laws, bond covenants, contractual
1498agreements, or other legal constraints. Fixed or capital assets,
1499the disposal of which would impair the ability of a local
1500governmental entity to carry out its functions, are not
1501considered resources available to cover reported deficits.
1502     (2)  A local governmental entity shall notify the Governor
1503and the Legislative Auditing Committee, a charter school shall
1504notify the charter school sponsor and the Legislative Auditing
1505Committee, and a district school board shall notify the
1506Commissioner of Education and the Legislative Auditing
1507Committee, when one or more of the conditions specified in
1508subsection (1) have occurred or will occur if action is not
1509taken to assist the local governmental entity, charter school,
1510or district school board. In addition, any state agency must,
1511within 30 days after a determination that one or more of the
1512conditions specified in subsection (1) have occurred or will
1513occur if action is not taken to assist the local governmental
1514entity, charter school, or district school board, notify the
1515Governor, charter school sponsor, or the Commissioner of
1516Education, as appropriate, and the Legislative Auditing
1517Committee.
1518     (4)  Upon notification that one or more of the conditions
1519in subsection (1) exist, the charter school sponsor or the
1520sponsor's designee shall contact the charter school governing
1521body to determine what actions have been taken by the charter
1522school governing body to resolve the condition. The charter
1523school sponsor has the authority to require and approve a
1524financial recovery plan, to be prepared by the charter school
1525governing body, prescribing actions that will cause the charter
1526school to no longer be subject to this section. The Department
1527of Education shall establish guidelines for developing such
1528plans.
1529     Section 6.  Subsection (1) of section 218.504, Florida
1530Statutes, is amended to read:
1531     218.504  Cessation of state action.--The Governor or the
1532Commissioner of Education, as appropriate, has the authority to
1533terminate all state actions pursuant to ss. 218.50-218.504.
1534Cessation of state action must not occur until the Governor or
1535the Commissioner of Education, as appropriate, has determined
1536that:
1537     (1)  The local governmental entity, charter school, or
1538district school board:
1539     (a)  Has established and is operating an effective
1540financial accounting and reporting system.
1541     (b)  Has resolved the conditions outlined in s. 218.503(1).
1542     Section 7.  Paragraph (e) of subsection (7) and subsection
1543(8) of section 11.45, Florida Statutes, are amended to read:
1544     11.45  Definitions; duties; authorities; reports; rules.--
1545     (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
1546     (e)  The Auditor General shall notify the Governor or the
1547Commissioner of Education, as appropriate, and the Legislative
1548Auditing Committee of any audit report reviewed by the Auditor
1549General pursuant to paragraph (b) which contains a statement
1550that a local governmental entity, charter school, or district
1551school board has met one or more of the conditions specified in
1552s. 218.503. If the Auditor General requests a clarification
1553regarding information included in an audit report to determine
1554whether a local governmental entity, charter school, or district
1555school board has met one or more of the conditions specified in
1556s. 218.503, the requested clarification must be provided within
155745 days after the date of the request. If the local governmental
1558entity, charter school, or district school board does not comply
1559with the Auditor General's request, the Auditor General shall
1560notify the Legislative Auditing Committee. If, after obtaining
1561the requested clarification, the Auditor General determines that
1562the local governmental entity, charter school, or district
1563school board has met one or more of the conditions specified in
1564s. 218.503, he or she shall notify the Governor or the
1565Commissioner of Education, as appropriate, and the Legislative
1566Auditing Committee.
1567     (8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
1568consultation with the Board of Accountancy, shall adopt rules
1569for the form and conduct of all financial audits performed by
1570independent certified public accountants pursuant to ss.
1571215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
1572audits of local governmental entities, charter schools, and
1573district school boards must include, but are not limited to,
1574requirements for the reporting of information necessary to carry
1575out the purposes of the Local Governmental Entity, Charter
1576School, and District School Board Financial Emergencies Act as
1577stated in s. 218.501.
1578     Section 8.  Subsection (3) of section 1003.05, Florida
1579Statutes, is amended to read:
1580     1003.05  Assistance to transitioning students from military
1581families.--
1582     (3)  Dependent children of active duty military personnel
1583who otherwise meet the eligibility criteria for special academic
1584programs offered through public schools shall be given first
1585preference for admission to such programs even if the program is
1586being offered through a public school other than the school to
1587which the student would generally be assigned and the school at
1588which the program is being offered has reached its maximum
1589enrollment. If such a program is offered through a public school
1590other than the school to which the student would generally be
1591assigned, the parent or guardian of the student must assume
1592responsibility for transporting the student to that school. For
1593purposes of this subsection, special academic programs include
1594charter schools, magnet schools, advanced studies programs,
1595advanced placement, dual enrollment, and International
1596Baccalaureate.
1597     Section 9.  Effective July 1, 2007, subsection (2) of
1598section 1012.74, Florida Statutes, is amended to read:
1599     1012.74  Florida educators professional liability insurance
1600protection.--
1601     (2)(a)  Educator professional liability coverage for all
1602instructional personnel, including charter school instructional
1603personnel, as defined by s. 1012.01(2), who are full-time
1604personnel, as defined by the district school board policy, shall
1605be provided by specific appropriations under the General
1606Appropriations Act.
1607     (b)  Educator professional liability coverage shall be
1608extended at cost to all instructional personnel, including
1609charter school instructional personnel, as defined by s.
16101012.01(2), who are part-time personnel, as defined by the
1611district school board policy, and choose to participate in the
1612state-provided program.
1613     (c)  Educator professional liability coverage shall be
1614extended at cost to all administrative personnel, including
1615administrative personnel in charter schools, as defined by s.
16161012.01(3), who choose to participate in the state-provided
1617program.
1618     Section 10.  Except as otherwise expressly provided in this
1619act, this act shall take effect July 1, 2006.


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