Amendment
Bill No. CS/CS/HB 1259

Amendment No. 222765

CHAMBER ACTION
Senate		House
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1	Representatives Flores and Legg offered the following:
2
3	Amendment (with title amendment)
4	Remove lines 464-1710 and insert:
5	body to resolve the condition. If one or more of the conditions
6	in paragraphs(1)(a)-(d) exist, the Commissioner of Education may
7	charter school sponsor has the authority to require and approve
8	a financial recovery plan, to be prepared by the charter school
9	governing body, prescribing actions that will cause the charter
10	school to no longer be subject to this section. The Department
11	of Education shall establish guidelines for developing such
12	plans.
13	(b)  Upon notification that one or more of the conditions
14	in subsection (1), the charter technical career center sponsor
15	or the sponsor's designee and the Commissioner of Education
16	shall contact the charter technical career center governing body
17	to determine what actions have been taken by the charter
18	technical career center governing body to resolve the condition.
19	If one or more of the conditions in paragraphs(1)(a) through
20	(d)exist, the Commissioner of Education may require and approve
21	a financial recovery plan, to be prepared by the charter
22	technical career center governing body, prescribing actions that
23	will cause the charter technical career center to no longer be
24	subject to this section.
25	(c)  The Commissioner of Education shall determine if the
26	charter school or charter technical career center needs a
27	financial recovery plan to resolve a condition in
28	paragraphs(1)(a)-(d). If the Commissioner of Education
29	determines that a financial recovery plan is needed, the charter
30	school or charter technical career center is considered to be in
31	a state of financial emergency.
32
33	The Department of Education, with the involvement of sponsors,
34	charter schools, and charter technical career centers, shall
35	establish guidelines for developing such plans.
36	Section 6.  Section 218.504, Florida Statutes, is amended
37	to read:
38	218.504  Cessation of state action.--The Governor or the
39	Commissioner of Education, as appropriate, has the authority to
40	terminate all state actions pursuant to ss. 218.50-218.504.
41	Cessation of state action must not occur until the Governor or
42	the Commissioner of Education, as appropriate, has determined
43	that:
44	(1)  The local governmental entity, charter school, charter
45	technical career center, or district school board:
46	(a)  Has established and is operating an effective
47	financial accounting and reporting system.
48	(b)  Has resolved the conditions outlined in s. 218.503(1).
49	(2)  None of the conditions outlined in s. 218.503(1)
50	exists.
51	Section 7.  Paragraph (b) of subsection (5), paragraphs
52	(a), (b), and (d) of subsection (6), paragraphs (a) and (b) of
53	subsection (7), paragraphs (g) through (q) of subsection (9),
54	paragraphs (a) and (h) of subsection (10), paragraphs (b) and
55	(c) of subsection (17), paragraph (e) of subsection (18),
56	paragraph (a) of subsection (20), and subsections (21) and (23)
57	of section 1002.33, Florida Statutes, are amended, present
58	subsection (24) is renumbered as subsection (26), and new
59	subsections (24) and (25) are added to that section, to read:
60	1002.33  Charter schools.--
61	(5)  SPONSOR; DUTIES.--
62	(b)  Sponsor duties.--
63	1.a.  The sponsor shall monitor and review the charter
64	school in its progress toward the goals established in the
65	charter.
66	b.  The sponsor shall monitor the revenues and expenditures
67	of the charter school and perform the duties provided for in s.
68	1002.345.
69	c.  The sponsor may approve a charter for a charter school
70	before the applicant has secured space, equipment, or personnel,
71	if the applicant indicates approval is necessary for it to raise
72	working funds.
73	d.  The sponsor's policies shall not apply to a charter
74	school unless mutually agreed to by both the sponsor and the
75	charter school.
76	e.  The sponsor shall ensure that the charter is innovative
77	and consistent with the state education goals established by s.
78	1000.03(5).
79	f.  The sponsor shall ensure that the charter school
80	participates in the state's education accountability system. If
81	a charter school falls short of performance measures included in
82	the approved charter, the sponsor shall report such shortcomings
83	to the Department of Education.
84	g.  The sponsor shall not be liable for civil damages under
85	state law for personal injury, property damage, or death
86	resulting from an act or omission of an officer, employee,
87	agent, or governing body of the charter school.
88	h.  The sponsor shall not be liable for civil damages under
89	state law for any employment actions taken by an officer,
90	employee, agent, or governing body of the charter school.
91	i.  The sponsor's duties to monitor the charter school
92	shall not constitute the basis for a private cause of action.
93	j.  The sponsor shall not impose additional reporting
94	requirements on a charter school without providing reasonable
95	and specific justification in writing to the charter school.
96	2.  Immunity for the sponsor of a charter school under
97	subparagraph 1. applies only with respect to acts or omissions
98	not under the sponsor's direct authority as described in this
99	section.
100	3.  Nothing contained in this paragraph shall be considered
101	a waiver of sovereign immunity by a district school board.
102	4.  A community college may work with the school district
103	or school districts in its designated service area to develop
104	charter schools that offer secondary education. These charter
105	schools must include an option for students to receive an
106	associate degree upon high school graduation. District school
107	boards shall cooperate with and assist the community college on
108	the charter application. Community college applications for
109	charter schools are not subject to the time deadlines outlined
110	in subsection (6) and may be approved by the district school
111	board at any time during the year. Community colleges shall not
112	report FTE for any students who receive FTE funding through the
113	Florida Education Finance Program.
114	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
115	applications are subject to the following requirements:
116	(a)  A person or entity wishing to open a charter school
117	shall prepare and submit an application on a form developed by
118	the Department of Education, which that:
119	1.  Demonstrates how the school will use the guiding
120	principles and meet the statutorily defined purpose of a charter
121	school.
122	2.  Provides a detailed curriculum plan that illustrates
123	how students will be provided services to attain the Sunshine
124	State Standards.
125	3.  Contains goals and objectives for improving student
126	learning and measuring that improvement. These goals and
127	objectives must indicate how much academic improvement students
128	are expected to show each year, how success will be evaluated,
129	and the specific results to be attained through instruction.
130	4.  Describes the reading curriculum and differentiated
131	strategies that will be used for students reading at grade level
132	or higher and a separate curriculum and strategies for students
133	who are reading below grade level. A sponsor shall deny a
134	charter if the school does not propose a reading curriculum that
135	is consistent with effective teaching strategies that are
136	grounded in scientifically based reading research.
137	5.  Contains an annual financial plan for each year
138	requested by the charter for operation of the school for up to 5
139	years. This plan must contain anticipated fund balances based on
140	revenue projections, a spending plan based on projected revenues
141	and expenses, and a description of controls that will safeguard
142	finances and projected enrollment trends.
143	(b)  A sponsor shall receive and review all applications
144	for a charter school using an evaluation instrument developed by
145	the Department of Education. Beginning with the 2007-2008 school
146	year, a sponsor shall receive and consider charter school
147	applications received on or before August 1 of each calendar
148	year for charter schools to be opened at the beginning of the
149	school district's next school year, or to be opened at a time
150	agreed to by the applicant and the sponsor. A sponsor may
151	receive applications later than this date if it chooses. A
152	sponsor may not charge an applicant for a charter any fee for
153	the processing or consideration of an application, and a sponsor
154	may not base its consideration or approval of an application
155	upon the promise of future payment of any kind.
156	1.  In order to facilitate an accurate budget projection
157	process, a sponsor shall be held harmless for FTE students who
158	are not included in the FTE projection due to approval of
159	charter school applications after the FTE projection deadline.
160	In a further effort to facilitate an accurate budget projection,
161	within 15 calendar days after receipt of a charter school
162	application, a sponsor shall report to the Department of
163	Education the name of the applicant entity, the proposed charter
164	school location, and its projected FTE.
165	2.  In order to ensure fiscal responsibility, an
166	application for a charter school shall include a full accounting
167	of expected assets, a projection of expected sources and amounts
168	of income, including income derived from projected student
169	enrollments and from community support, and an expense
170	projection that includes full accounting of the costs of
171	operation, including start-up costs.
172	3.  A sponsor shall by a majority vote approve or deny an
173	application no later than 60 calendar days after the application
174	is received, unless the sponsor and the applicant mutually agree
175	in writing to temporarily postpone the vote to a specific date,
176	at which time the sponsor shall by a majority vote approve or
177	deny the application. If the sponsor fails to act on the
178	application, an applicant may appeal to the State Board of
179	Education as provided in paragraph (c). If an application is
180	denied, the sponsor shall, within 10 calendar days, articulate
181	in writing the specific reasons, based upon good cause,
182	supporting its denial of the charter application and shall
183	provide the letter of denial and supporting documentation to the
184	applicant and to the Department of Education supporting those
185	reasons.
186	4.  For budget projection purposes, the sponsor shall
187	report to the Department of Education the approval or denial of
188	a charter application within 10 calendar days after such
189	approval or denial. In the event of approval, the report to the
190	Department of Education shall include the final projected FTE
191	for the approved charter school.
192	5.  Upon approval of a charter application, the initial
193	startup shall commence with the beginning of the public school
194	calendar for the district in which the charter is granted unless
195	the sponsor allows a waiver of this provision for good cause.
196	(d)  For charter school applications in school districts
197	that have not been granted exclusive authority to sponsor
198	charter schools pursuant to s. 1002.335(5), the right to appeal
199	an application denial under paragraph (c) shall be contingent on
200	the applicant having submitted the same or a substantially
201	similar application to the district school board and the Florida
202	Schools of Excellence Commission or one of its cosponsors. Any
203	such applicant whose application is denied by the commission or
204	one of its cosponsors and subsequent to its denial by the
205	district school board may exercise its right to appeal the
206	district school board's denial under paragraph (c) within 30
207	days after receipt of the commission's or cosponsor's denial or
208	failure to act on the application. However, the applicant
209	forfeits its right to appeal under paragraph (c) if it fails to
210	submit its application to the commission or one of its
211	cosponsors by August 1 of the school year immediately following
212	the district school board's denial of the application.
213	(7)  CHARTER.--The major issues involving the operation of
214	a charter school shall be considered in advance and written into
215	the charter. The charter shall be signed by the governing body
216	of the charter school and the sponsor, following a public
217	hearing to ensure community input.
218	(a)  The charter shall address, and criteria for approval
219	of the charter shall be based on:
220	1.  The school's mission, the students to be served, and
221	the ages and grades to be included.
222	2.  The focus of the curriculum, the instructional methods
223	to be used, any distinctive instructional techniques to be
224	employed, and identification and acquisition of appropriate
225	technologies needed to improve educational and administrative
226	performance which include a means for promoting safe, ethical,
227	and appropriate uses of technology which comply with legal and
228	professional standards. The charter shall ensure that reading is
229	a primary focus of the curriculum and that resources are
230	provided to identify and provide specialized instruction for
231	students who are reading below grade level. The curriculum and
232	instructional strategies for reading must be consistent with the
233	Sunshine State Standards and grounded in scientifically based
234	reading research.
235	3.  The current incoming baseline standard of student
236	academic achievement, the outcomes to be achieved, and the
237	method of measurement that will be used. The criteria listed in
238	this subparagraph shall include a detailed description for each
239	of the following:
240	a.  How the baseline student academic achievement levels
241	and prior rates of academic progress will be established.
242	b.  How these baseline rates will be compared to rates of
243	academic progress achieved by these same students while
244	attending the charter school.
245	c.  To the extent possible, how these rates of progress
246	will be evaluated and compared with rates of progress of other
247	closely comparable student populations.
248
249	The district school board is required to provide academic
250	student performance data to charter schools for each of their
251	students coming from the district school system, as well as
252	rates of academic progress of comparable student populations in
253	the district school system.
254	4.  The methods used to identify the educational strengths
255	and needs of students and how well educational goals and
256	performance standards are met by students attending the charter
257	school. Included in the methods is a means for the charter
258	school to ensure accountability to its constituents by analyzing
259	student performance data and by evaluating the effectiveness and
260	efficiency of its major educational programs. Students in
261	charter schools shall, at a minimum, participate in the
262	statewide assessment program created under s. 1008.22.
263	5.  In secondary charter schools, a method for determining
264	that a student has satisfied the requirements for graduation in
265	s. 1003.43.
266	6.  A method for resolving conflicts between the governing
267	body of the charter school and the sponsor.
268	7.  The admissions procedures and dismissal procedures,
269	including the school's code of student conduct.
270	8.  The ways by which the school will achieve a
271	racial/ethnic balance reflective of the community it serves or
272	within the racial/ethnic range of other public schools in the
273	same school district.
274	9.  The financial and administrative management of the
275	school, including a reasonable demonstration of the professional
276	experience or competence of those individuals or organizations
277	applying to operate the charter school or those hired or
278	retained to perform such professional services and the
279	description of clearly delineated responsibilities and the
280	policies and practices needed to effectively manage the charter
281	school. A description of internal audit procedures and
282	establishment of controls to ensure that financial resources are
283	properly managed must be included. Both public sector and
284	private sector professional experience shall be equally valid in
285	such a consideration.
286	10.  The asset and liability projections required in the
287	application which are incorporated into the charter and which
288	shall be compared with information provided in the annual report
289	of the charter school. The charter shall ensure that, if a
290	charter school internal audit or annual financial audit reveals
291	a state of financial emergency as defined in s. 218.503 or
292	deficit financial position, the auditors are required to notify
293	the charter school governing board, the sponsor, and the
294	Department of Education. The internal auditor shall report such
295	findings in the form of an exit interview to the principal or
296	the principal administrator of the charter school and the chair
297	of the governing board within 7 working days after finding the
298	state of financial emergency or deficit position. A final report
299	shall be provided to the entire governing board, the sponsor,
300	and the Department of Education within 14 working days after the
301	exit interview. When a charter school is in a state of financial
302	emergency, the charter school shall file a detailed financial
303	recovery plan with the sponsor. The department, with the
304	involvement of both sponsors and charter schools, shall
305	establish guidelines for developing such plans.
306	11.  A description of procedures that identify various
307	risks and provide for a comprehensive approach to reduce the
308	impact of losses; plans to ensure the safety and security of
309	students and staff; plans to identify, minimize, and protect
310	others from violent or disruptive student behavior; and the
311	manner in which the school will be insured, including whether or
312	not the school will be required to have liability insurance,
313	and, if so, the terms and conditions thereof and the amounts of
314	coverage.
315	12.  The term of the charter which shall provide for
316	cancellation of the charter if insufficient progress has been
317	made in attaining the student achievement objectives of the
318	charter and if it is not likely that such objectives can be
319	achieved before expiration of the charter. The initial term of a
320	charter shall be for 4 or 5 years. In order to facilitate access
321	to long-term financial resources for charter school
322	construction, charter schools that are operated by a
323	municipality or other public entity as provided by law are
324	eligible for up to a 15-year charter, subject to approval by the
325	district school board. A charter lab school is eligible for a
326	charter for a term of up to 15 years. In addition, to facilitate
327	access to long-term financial resources for charter school
328	construction, charter schools that are operated by a private,
329	not-for-profit, s. 501(c)(3) status corporation are eligible for
330	up to a 15-year charter, subject to approval by the district
331	school board. Such long-term charters remain subject to annual
332	review and may be terminated during the term of the charter, but
333	only according to the provisions set forth in subsection (8).
334	13.  The facilities to be used and their location.
335	14.  The qualifications to be required of the teachers and
336	the potential strategies used to recruit, hire, train, and
337	retain qualified staff to achieve best value.
338	15.  The governance structure of the school, including the
339	status of the charter school as a public or private employer as
340	required in paragraph (12)(i).
341	16.  A timetable for implementing the charter which
342	addresses the implementation of each element thereof and the
343	date by which the charter shall be awarded in order to meet this
344	timetable.
345	17.  In the case of an existing public school being
346	converted to charter status, alternative arrangements for
347	current students who choose not to attend the charter school and
348	for current teachers who choose not to teach in the charter
349	school after conversion in accordance with the existing
350	collective bargaining agreement or district school board rule in
351	the absence of a collective bargaining agreement. However,
352	alternative arrangements shall not be required for current
353	teachers who choose not to teach in a charter lab school, except
354	as authorized by the employment policies of the state university
355	which grants the charter to the lab school.
356	18.  Full disclosure of the identity of all relatives
357	employed by the charter school who are related to the charter
358	school owner, president, chair of the governing board of
359	directors, superintendent, governing board member, principal,
360	assistant principal, or any other person employed by the charter
361	school having equivalent decisionmaking authority. For the
362	purpose of this subparagraph, the term "relative" means father,
363	mother, son, daughter, brother, sister, husband, wife, father-
364	in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-
365	law, sister-in-law, stepfather, stepmother, stepson,
366	stepdaughter, stepbrother, stepsister, half brother, or half
367	sister.
368	(b)1.  A charter may be renewed if provided that a program
369	review demonstrates that the criteria in paragraph (a) have been
370	successfully accomplished and that none of the grounds for
371	nonrenewal established by paragraph (8)(a) has been documented.
372	In order to facilitate long-term financing for charter school
373	construction, a charter school that has operated schools
374	operating for a minimum of 3 years, that has received a school
375	grade of at least a "C" pursuant to s. 1008.34 during the
376	previous 3 years, and that demonstrates demonstrating exemplary
377	academic programming and fiscal management must be offered are
378	eligible for a 15-year charter renewal. Such long-term charter
379	is subject to annual review and may be terminated during the
380	term of the charter pursuant to subsection (8).
381	2.  The 15-year charter renewal that may be granted
382	pursuant to subparagraph 1. shall be granted to a charter school
383	that has received a school grade of "A" or "B" pursuant to s.
384	1008.34 in 3 of the past 4 years and is not in a state of
385	financial emergency or deficit position as defined by this
386	section. Such long-term charter is subject to annual review and
387	may be terminated during the term of the charter pursuant to
388	subsection (8).
389	(9)  CHARTER SCHOOL REQUIREMENTS.--
390	(g)  A charter school shall provide for an annual financial
391	audit in accordance with s. 218.39. Financial audits that reveal
392	a state of financial emergency as defined in s. 218.503 and are
393	conducted by a certified public accountant or auditor in
394	accordance with s. 218.39 shall be provided to the governing
395	body of the charter school within 7 working days after finding
396	that a state of financial emergency exists. When a charter
397	school is found to be in a state of financial emergency by a
398	certified public accountant or auditor, the charter school must
399	file a detailed financial recovery plan with the sponsor within
400	30 days after receipt of the audit.
401	(g)(h)  In order to provide financial information that is
402	comparable to that reported for other public schools, charter
403	schools are to maintain all financial records which constitute
404	their accounting system:
405	1.  In accordance with the accounts and codes prescribed in
406	the most recent issuance of the publication titled "Financial
407	and Program Cost Accounting and Reporting for Florida Schools";
408	or
409	2.  At the discretion of the charter school governing
410	board, a charter school may elect to follow generally accepted
411	accounting standards for not-for-profit organizations, but must
412	reformat this information for reporting according to this
413	paragraph.
414
415	Charter schools shall provide annual financial report and
416	program cost report information in the state-required formats
417	for inclusion in district reporting in compliance with s.
418	1011.60(1). Charter schools that are operated by a municipality
419	or are a component unit of a parent nonprofit organization may
420	use the accounting system of the municipality or the parent but
421	must reformat this information for reporting according to this
422	paragraph. A charter school shall provide quarterly financial
423	statements to the sponsor, except that such statements shall be
424	provided monthly if a charter school is subject to corrective
425	action plan under s. 1002.345 or a financial recovery plan under
426	s. 218.503.
427	(h)(i)  The governing board of the charter school shall
428	annually adopt and maintain an operating budget.
429	(i)(j)  The governing body of the charter school shall
430	exercise continuing oversight over charter school operations.
431	(j)(k)  The governing body of the charter school shall be
432	responsible for:
433	1.  Ensuring that the charter school has retained the
434	services of a certified public accountant or auditor for the
435	annual financial audit, pursuant to s. 1002.345(2) paragraph
436	(g), who shall submit the report to the governing body.
437	2.  Reviewing and approving the audit report, including
438	audit findings and recommendations for the financial recovery
439	plan.
440	3.a.  Performing the duties provided for in s. 1002.345,
441	including monitoring a corrective action plan.
442	b.  Monitoring a financial recovery plan in order to ensure
443	compliance.
444	4.  Participating in governance training approved by the
445	department that must include government in the sunshine,
446	conflicts of interest, ethics, and financial responsibility.
447	(k)(l)  The governing body of the charter school shall
448	report its progress annually to its sponsor, which shall forward
449	the report to the Commissioner of Education at the same time as
450	other annual school accountability reports. The Department of
451	Education shall develop a uniform, online annual accountability
452	report format to be completed by charter schools. This report
453	shall be easy to utilize and contain demographic information,
454	student performance data, and financial accountability
455	information. A charter school may directly access, complete, and
456	correct school data and information in the online accountability
457	report. The sponsor shall review the report before final
458	submission to shall not be required to provide information and
459	data that is duplicative and already in the possession of the
460	department. The Department of Education shall include in its
461	compilation a notation if a school failed to file its report by
462	the deadline established by the department. The report shall
463	include at least the following components:
464	1.  Student achievement performance data, including the
465	information required for the annual school report and the
466	education accountability system governed by ss. 1008.31 and
467	1008.345. Charter schools are subject to the same accountability
468	requirements as other public schools, including reports of
469	student achievement information that links baseline student data
470	to the school's performance projections identified in the
471	charter. The charter school shall identify reasons for any
472	difference between projected and actual student performance.
473	2.  Financial status of the charter school which must
474	include revenues and expenditures at a level of detail that
475	allows for analysis of the school's ability to meet financial
476	obligations and timely repayment of debt.
477	3.  Documentation of the facilities in current use and any
478	planned facilities for use by the charter school for instruction
479	of students, administrative functions, or investment purposes.
480	4.  Descriptive information about the charter school's
481	personnel, including salary and benefit levels of charter school
482	employees, the proportion of instructional personnel who hold
483	professional or temporary certificates, and the proportion of
484	instructional personnel teaching in-field or out-of-field.
485	(l)(m)  A charter school shall not levy taxes or issue
486	bonds secured by tax revenues.
487	(m)(n)  A charter school shall provide instruction for at
488	least the number of days required by law for other public
489	schools, and may provide instruction for additional days.
490	(n)(o)  The director and a representative of the governing
491	body of a charter school that has received a school grade of "D"
492	under s. 1008.34(2) shall appear before the sponsor or the
493	sponsor's staff at least once a year to present information
494	concerning each contract component having noted deficiencies.
495	The sponsor shall communicate at the meeting, and in writing to
496	the director, the services provided to the school to help the
497	school address its deficiencies.
498	(o)(p)  Upon notification that a charter school receives a
499	school grade of "D" for 2 consecutive years or a school grade of
500	"F" under s. 1008.34(2), the charter school sponsor or the
501	sponsor's staff shall require the director and a representative
502	of the governing body to submit to the sponsor for approval a
503	school improvement plan to raise student achievement and to
504	implement the plan. The sponsor has the authority to approve a
505	school improvement plan that the charter school will implement
506	in the following school year. The sponsor may also consider the
507	State Board of Education's recommended action pursuant to s.
508	1008.33(1) as part of the school improvement plan. The
509	Department of Education shall offer technical assistance and
510	training to the charter school and its governing body and
511	establish guidelines for developing, submitting, and approving
512	such plans.
513	1.  If the charter school fails to improve its student
514	performance from the year immediately prior to the
515	implementation of the school improvement plan, the sponsor shall
516	place the charter school on probation and shall require the
517	charter school governing body to take one of the following
518	corrective actions:
519	a.  Contract for the educational services of the charter
520	school;
521	b.  Reorganize the school at the end of the school year
522	under a new director or principal who is authorized to hire new
523	staff and implement a plan that addresses the causes of
524	inadequate progress; or
525	c.  Reconstitute the charter school.
526	2.  A charter school that is placed on probation shall
527	continue the corrective actions required under subparagraph 1.
528	until the charter school improves its student performance from
529	the year prior to the implementation of the school improvement
530	plan.
531	3.  Notwithstanding any provision of this paragraph, the
532	sponsor may terminate the charter at any time pursuant to the
533	provisions of subsection (8).
534	(p)(q)  The director and a representative of the governing
535	body of a graded charter school that has submitted a school
536	improvement plan or has been placed on probation under paragraph
537	(o) (p) shall appear before the sponsor or the sponsor's staff
538	at least once a year to present information regarding the
539	corrective strategies that are being implemented by the school
540	pursuant to the school improvement plan. The sponsor shall
541	communicate at the meeting, and in writing to the director, the
542	services provided to the school to help the school address its
543	deficiencies.
544	(10)  ELIGIBLE STUDENTS.--
545	(a)  A charter school shall be open to any student covered
546	in an interdistrict agreement or residing in the school district
547	in which the charter school is located; however, in the case of
548	a charter lab school, the charter lab school shall be open to
549	any student eligible to attend the lab school as provided in s.
550	1002.32 or who resides in the school district in which the
551	charter lab school is located. Any eligible student shall be
552	allowed interdistrict transfer to attend a charter school when
553	based on good cause. Good cause shall include, but not be
554	limited to, geographic proximity to a charter school in a
555	neighboring school district.
556	(h)  The capacity of the charter school shall be determined
557	annually by the governing board, in conjunction with the
558	sponsor, of the charter school in consideration of the factors
559	identified in this subsection. The calculation under s. 1003.03
560	for class size compliance for charter schools shall be the
561	average for the applicable grade grouping at the school level
562	established at the October student membership survey of the
563	district in which the charter school is operated.
564	(17)  FUNDING.--Students enrolled in a charter school,
565	regardless of the sponsorship, shall be funded as if they are in
566	a basic program or a special program, the same as students
567	enrolled in other public schools in the school district. Funding
568	for a charter lab school shall be as provided in s. 1002.32.
569	(b)  The basis for the agreement for funding students
570	enrolled in a charter school shall be the sum of the school
571	district's operating funds from the Florida Education Finance
572	Program as provided in s. 1011.62 and the General Appropriations
573	Act, including gross state and local funds, discretionary
574	lottery funds, and funds from the school district's current
575	operating discretionary millage levy; divided by total funded
576	weighted full-time equivalent students in the school district;
577	multiplied by the weighted full-time equivalent students for the
578	charter school. Charter schools whose students or programs meet
579	the eligibility criteria in law shall be entitled to their
580	proportionate share of categorical program funds included in the
581	total funds available in the Florida Education Finance Program
582	by the Legislature, including transportation. Total funding for
583	each charter school shall be recalculated during the year to
584	reflect the revised calculations under the Florida Education
585	Finance Program by the state and the actual weighted full-time
586	equivalent students reported by the charter school during the
587	full-time equivalent student survey periods designated by the
588	Commissioner of Education. Florida Education Finance Program
589	funds for a charter school must be distributed to the charter
590	school by the district school board within 10 days after receipt
591	from the state.
592	(c)  If the sponsor district school board is providing
593	programs or services to students funded by federal funds, any
594	eligible students enrolled in charter schools in the school
595	district shall be provided federal funds for the same level of
596	service provided students in the schools operated by the
597	district school board. Pursuant to provisions of 20 U.S.C. 8061
598	s. 10306, all charter schools shall receive all federal funding
599	for which the school is otherwise eligible, including Title I
600	funding and funding under the Individuals with Disabilities
601	Education Act, not later than 5 months after the charter school
602	first opens and within 5 months after any subsequent expansion
603	of enrollment.
604	(18)  FACILITIES.--
605	(e)1.  If a district school board facility or property is
606	available because it is surplused surplus, marked for disposal,
607	or otherwise unused:,
608	a.  It shall be provided for a charter school's use on the
609	same basis as it is made available to other public schools in
610	the district. A charter school receiving property from the
611	school district under this subparagraph may not sell or dispose
612	of such property without written permission of the school
613	district.
614	b.  It shall first be offered for purchase or lease to
615	charter schools within the district to be used for educational
616	purposes for a period of 45 days following a district school
617	board's decision to sell or lease such property.
618	2. Similarly, For an existing public school converting to
619	charter status, no rental or leasing fee for the existing
620	facility or for the property normally inventoried to the
621	conversion school may be charged by the district school board to
622	the parents and teachers organizing the charter school. The
623	charter school shall agree to reasonable maintenance provisions
624	in order to maintain the facility in a manner similar to
625	district school board standards. The Public Education Capital
626	Outlay maintenance funds or any other maintenance funds
627	generated by the facility operated as a conversion school shall
628	remain with the conversion school.
629	(20)  SERVICES.--
630	(a)  A sponsor shall provide certain administrative and
631	educational services to charter schools. These services shall
632	include contract management services; full-time equivalent and
633	data reporting services; exceptional student education
634	administration services; services related to eligibility and
635	reporting duties required to ensure that school lunch services
636	under the federal lunch program, consistent with the needs of
637	the charter school, are provided by the school district at the
638	request of the charter school, that any funds due the charter
639	school under the federal lunch program be paid to the charter
640	school as soon as the charter school begins serving food under
641	the federal lunch program, and that the charter school is paid
642	at the same time and in the same manner under the federal lunch
643	program as other public schools serviced by the sponsor or
644	school district; test administration services, including payment
645	of the costs of state-required or district-required student
646	assessments; processing of teacher certificate data services;
647	and information services, including equal access to student
648	information systems that are used by public schools in the
649	district in which the charter school is located. Student
650	performance data for each student in a charter school,
651	including, but not limited to, FCAT scores, standardized test
652	scores, previous public school student report cards, and student
653	performance measures, shall be provided by the sponsor to a
654	charter school in the same manner provided to other public
655	schools in the district. A total administrative fee for the
656	provision of such services shall be calculated based upon up to
657	5 percent of the available funds defined in paragraph (17)(b)
658	for all students. However, a sponsor may only withhold up to a
659	5-percent administrative fee for enrollment for up to and
660	including 500 students. For charter schools with a population of
661	501 or more students, the difference between the total
662	administrative fee calculation and the amount of the
663	administrative fee withheld may only be used for capital outlay
664	purposes specified in s. 1013.62(2). Sponsors shall not charge
665	charter schools any additional fees or surcharges for
666	administrative and educational services in addition to the
667	maximum 5-percent administrative fee withheld pursuant to this
668	paragraph.
669	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--
670	(a)  The Department of Education shall provide information
671	to the public, directly and through sponsors, both on how to
672	form and operate a charter school and on how to enroll in
673	charter schools once they are created. This information shall
674	include a standard application format, charter format,
675	evaluation instrument, and charter renewal format which shall
676	include the information specified in subsection (7) and shall be
677	developed by consulting and negotiating with both school
678	districts, the Florida Schools of Excellence Commission, and
679	charter schools before implementation. These formats shall be
680	used as guidelines by charter school sponsors.
681	(b)1.  The Department of Education shall report student
682	assessment data pursuant to s. 1008.34(3)(b) which is reported
683	to schools that receive a school grade pursuant to s. 1008.34 or
684	student assessment data pursuant to s. 1008.341(3) which is
685	reported to alternative schools that receive a school
686	improvement rating pursuant to s. 1008.341 to each charter
687	school that:
688	a.  Does not receive a school grade pursuant to s. 1008.34
689	or a school improvement rating pursuant to s. 1008.341; and
690	b.  Serves at least 10 students who are tested on the
691	statewide assessment test pursuant to s. 1008.22.
692	2.  The charter school shall report the information in
693	subparagraph 1. to each parent of a student at the charter
694	school, the district in which the charter school is located, and
695	the governing board of the charter school. This paragraph does
696	not abrogate the provisions of s. 1002.22, relating to student
697	records, and the requirements of 20 U.S.C. s. 1232g, the Family
698	Educational Rights and Privacy Act.
699	3.a.  Pursuant to this paragraph, the Department of
700	Education shall compare the charter school student performance
701	data for each charter school in subparagraph 1. with the student
702	performance data in traditional public schools in the district
703	in which the charter school is located and other charter schools
704	in the state. For charter alternative schools, the department
705	shall compare the student performance data described in this
706	paragraph with all alternative schools in the state. The
707	comparative data shall be provided by the following grade
708	groupings:
709	(I)  Grades 3 through 5.
710	(II)  Grades 6 through 8.
711	(III)  Grades 9 through 11.
712	b.  Each charter school shall make the information in this
713	paragraph available to the public.
714	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
715	of the annual report required by paragraph (9)(k) (9)(l), the
716	Department of Education shall provide to the State Board of
717	Education, the Commissioner of Education, the Governor, the
718	President of the Senate, and the Speaker of the House of
719	Representatives an analysis and comparison of the overall
720	performance of charter school students, to include all students
721	whose scores are counted as part of the statewide assessment
722	program, versus comparable public school students in the
723	district as determined by the statewide assessment program
724	currently administered in the school district, and other
725	assessments administered pursuant to s. 1008.22(3).
726	(24)  RESTRICTION ON EMPLOYMENT OF RELATIVES.--
727	(a)  This subsection applies to charter school personnel in
728	a charter school operated by a private entity. Charter school
729	personnel in schools operated by a municipality or other public
730	entity are subject to s. 112.3135.
731	(b)  As used in this subsection, the term:
732	1.  "Charter school personnel" means a charter school
733	owner, president, chair of the governing board of directors,
734	superintendent, governing board member, principal, assistant
735	principal, or any other person employed by the charter school
736	having equivalent decisionmaking authority and in whom is vested
737	the authority, or to whom the authority has been delegated, to
738	appoint, employ, promote, or advance individuals or to recommend
739	individuals for appointment, employment, promotion, or
740	advancement in connection with employment in a charter school,
741	including the authority as a member of a governing board of a
742	charter school to vote on the appointment, employment,
743	promotion, or advancement of individuals.
744	2.  "Relative" means father, mother, son, daughter,
745	brother, sister, husband, wife, father-in-law, mother-in-law,
746	son-in-law, daughter-in-law, brother-in-law, sister-in-law,
747	stepfather, stepmother, stepson, stepdaughter, stepbrother,
748	stepsister, half brother, or half sister.
749	3.  "Supervise" means the appointment, employment,
750	promotion, or advancement of an individual or recommendation of
751	the appointment, employment, promotion, or advancement of an
752	individual.
753	(c)  Charter school personnel may not supervise a relative
754	in the charter school in which the personnel serve unless the
755	governing board requests and obtains a waiver of this
756	requirement from the Commissioner of Education or his or her
757	designee.
758	(25)  STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--
759	(a)  A member of a governing board of a charter school,
760	including a charter school operated by a private entity, is
761	subject to the provisions of ss. 112.313(2), (3), (7), (12), and
762	(15) and 112.3143(3).
763	(b)  A member of a governing board of a charter school
764	operated by a municipality or other public entity is subject to
765	the provisions of s. 112.3144, relating to the disclosure of
766	financial interests.
767	Section 8.  Subsection (5), paragraph (a) of subsection
768	(7), and paragraph (a) of subsection (11) of section 1002.335,
769	Florida Statutes, are amended to read:
770	1002.335  Florida Schools of Excellence Commission.--
771	(5)  CHARTERING AUTHORITY.--
772	(a)  A charter school applicant may submit an application
773	to the commission only if the school district in which the FSE
774	charter school is to be located has not retained exclusive
775	authority to authorize charter schools as provided in paragraph
776	(e). If a district school board has not retained exclusive
777	authority to authorize charter schools as provided in paragraph
778	(e), the district school board and the commission shall have
779	concurrent authority to authorize charter schools and FSE
780	charter schools, respectively, to be located within the
781	geographic boundaries of the school district. The district
782	school board shall monitor and oversee all charter schools
783	authorized by the district school board pursuant to s. 1002.33.
784	The commission shall monitor and oversee all FSE charter schools
785	sponsored by the commission pursuant to subsection (4).
786	(b)  Paragraph (e) may not be construed to eliminate the
787	ability of a district school board to authorize charter schools
788	pursuant to s. 1002.33. A district school board shall retain the
789	authority to reauthorize and to oversee any charter school that
790	it has authorized, except with respect to any charter school
791	that is converted to an FSE charter school under this section.
792	(c)  For fiscal year 2008-2009 and every 4 fiscal years
793	thereafter 2007-2008 and for each fiscal year thereafter, a
794	district school board may seek to retain exclusive authority to
795	authorize charter schools within the geographic boundaries of
796	the school district by presenting to the State Board of
797	Education, on or before March 1 of the fiscal year prior to that
798	for which the exclusive authority is to apply, a written
799	resolution adopted by the district school board indicating the
800	intent to seek retain exclusive authority to authorize charter
801	schools. A district school board may seek to retain the
802	exclusive authority to authorize charter schools by presenting
803	to the state board the written resolution on or before a date 60
804	days after establishment of the commission. The written
805	resolution shall be accompanied by a written description
806	addressing the elements described in paragraph (e). The district
807	school board shall provide a complete copy of the resolution,
808	including the description, to each charter school authorized by
809	the district school board on or before the date it submits the
810	resolution to the state board.
811	(d)  A party may challenge the grant of exclusive authority
812	made by the State Board of Education pursuant to paragraph (e)
813	by filing with the state board a notice of challenge within 30
814	days after the state board grants exclusive authority. The
815	notice shall be accompanied by a specific written description of
816	the basis for the challenge. The challenging party, at the time
817	of filing notice with the state board, shall provide a copy of
818	the notice of challenge to the district school board that has
819	been granted exclusive authority. The state board shall permit
820	the district school board the opportunity to appear and respond
821	in writing to the challenge. The state board shall make a
822	determination upon the challenge within 60 days after receiving
823	the notice of challenge.
824	(e)  The State Board of Education shall grant to a district
825	school board exclusive authority to authorize charter schools
826	within the geographic boundaries of the school district if the
827	state board determines, after adequate notice, in a public
828	hearing, and after receiving input from any charter school
829	authorized by the district school board, that the district
830	school board has provided fair and equitable treatment to its
831	charter schools during the 4 years prior to the district school
832	board's submission of the resolution described in paragraph (c).
833	The state board's review of the resolution shall, at a minimum,
834	include consideration of the following:
835	1.  Compliance with the provisions of s. 1002.33.
836	2.  Compliance with full and accurate accounting practices
837	and charges for central administrative overhead costs.
838	3.  Compliance with requirements allowing a charter school,
839	at its discretion, to purchase certain services or a combination
840	of services at actual cost to the district.
841	4.  The absence of a district school board moratorium
842	regarding charter schools or the absence of any districtwide
843	charter school enrollment limits.
844	5.  Compliance with valid orders of the state board.
845	6.  The provision of assistance to charter schools to meet
846	their facilities needs by including those needs in local bond
847	issues or otherwise providing available land and facilities that
848	are comparable to those provided to other public school students
849	in the same grade levels within the school district.
850	7.  The distribution to charter schools authorized by the
851	district school board of a pro rata share of federal and state
852	grants received by the district school board, except for any
853	grant received for a particular purpose which, by its express
854	terms, is intended to benefit a student population not able to
855	be served by, or a program not able to be offered at, a charter
856	school that did not receive a proportionate share of such grant
857	proceeds.
858	8.  The provision of adequate staff and other resources to
859	serve charter schools authorized by the district school board,
860	which services are provided by the district school board at a
861	cost to the charter schools that does not exceed their actual
862	cost to the district school board.
863	9.  The lack of a policy or practice of imposing individual
864	charter school enrollment limits, except as otherwise provided
865	by law.
866	10.  The provision of an adequate number of educational
867	choice programs to serve students exercising their rights to
868	transfer pursuant to the "No Child Left Behind Act of 2001,"
869	Pub. L. No. 107-110, and a history of charter school approval
870	that encourages chartering.
871	(f)  The decision of the State Board of Education to grant
872	or deny exclusive authority to a district school board pursuant
873	to paragraph (e) shall be effective for 4 fiscal years, shall
874	not be subject to the provisions of chapter 120, and shall be a
875	final action subject to judicial review by the district court of
876	appeal.
877	(g)  For district school boards that have no discernible
878	history of authorizing charter schools, the State Board of
879	Education may not grant exclusive authority unless the district
880	school board demonstrates that no approvable application has
881	come before the district school board.
882	(h)  A grant of exclusive authority by the State Board of
883	Education shall continue so long as a district school board
884	continues to comply with this section and has presented a
885	written resolution to the state board as set forth in paragraph
886	(c).
887	(h)(i)  Notwithstanding any other provision of this section
888	to the contrary, a district school board may permit the
889	establishment of one or more FSE charter schools within the
890	geographic boundaries of the school district by adopting a
891	favorable resolution and submitting the resolution to the State
892	Board of Education. The resolution shall be effective until it
893	is rescinded by resolution of the district school board.
894	(7)  COSPONSOR AGREEMENT.--
895	(a)  Upon approval of a cosponsor, the commission and the
896	cosponsor shall enter into an agreement that defines the
897	cosponsor's rights and obligations and includes the following:
898	1.  An explanation of the personnel, contractual and
899	interagency relationships, and potential revenue sources
900	referenced in the application as required in paragraph (6)(c).
901	2.  Incorporation of the requirements of equal access for
902	all students, including any plans to provide food service or
903	transportation reasonably necessary to provide access to as many
904	students as possible.
905	3.  Incorporation of the requirement to serve low-income,
906	low-performing, gifted, or underserved student populations.
907	4.  An explanation of the academic and financial goals and
908	expected outcomes for the cosponsor's charter schools and the
909	method and plans by which they will be measured and achieved as
910	referenced in the application.
911	5.  The conflict-of-interest policies referenced in the
912	application.
913	6.  An explanation of the disposition of facilities and
914	assets upon termination and dissolution of a charter school
915	approved by the cosponsor.
916	7.a.  A provision requiring the cosponsor to annually
917	appear before the commission and provide a report as to the
918	information provided pursuant to s. 1002.33(9)(k)(l) for each of
919	its charter schools.
920	b.  A provision requiring the cosponsor to perform the
921	duties provided for in s. 1002.345.
922	c.  A provision requiring the governing board to perform
923	the duties provided for in s. 1002.345, including monitoring the
924	corrective action plan.
925	8.  A provision requiring that the cosponsor report the
926	student enrollment in each of its sponsored charter schools to
927	the district school board of the county in which the school is
928	located.
929	9.  A provision requiring that the cosponsor work with the
930	commission to provide the necessary reports to the State Board
931	of Education.
932	10.  Any other reasonable terms deemed appropriate by the
933	commission given the unique characteristics of the cosponsor.
934	(11)  APPLICATION OF CHARTER SCHOOL STATUTE.--
935	(a)  The provisions of s. 1002.33(7)-(12), (14), and (16)-
936	(19), (21)(b), (24), and (25) shall apply to the commission and
937	the cosponsors and charter schools approved pursuant to this
938	section.
939	Section 9.  Subsections (4) and (5), paragraphs (d) and (f)
940	of subsection (6), subsection (8), paragraph (c) of subsection
941	(10), and subsection (13) of section 1002.34, Florida Statutes,
942	are amended to read:
943	1002.34  Charter technical career centers.--
944	(4)  CHARTER.--A sponsor may designate centers as provided
945	in this section. An application to establish a center may be
946	submitted by a sponsor or another organization that is
947	determined, by rule of the State Board of Education, to be
948	appropriate. However, an independent school is not eligible for
949	status as a center. The charter must be signed by the governing
950	body of the center and the sponsor, and must be approved by the
951	district school board and community college board of trustees in
952	whose geographic region the facility is located. If a charter
953	technical career center is established by the conversion to
954	charter status of a public technical center formerly governed by
955	a district school board, the charter status of that center takes
956	precedence in any question of governance. The governance of the
957	center or of any program within the center remains with its
958	board of directors unless the board agrees to a change in
959	governance or its charter is revoked as provided in subsection
960	(15). Such a conversion charter technical career center is not
961	affected by a change in the governance of public technical
962	centers or of programs within other centers that are or have
963	been governed by district school boards. A charter technical
964	career center, or any program within such a center, that was
965	governed by a district school board and transferred to a
966	community college prior to the effective date of this act is not
967	affected by this provision. An applicant who wishes to establish
968	a center must submit to the district school board or community
969	college board of trustees, or a consortium of one or more of
970	each, an application on a form developed by the Department of
971	Education that includes:
972	(a)  The name of the proposed center.
973	(b)  The proposed structure of the center, including a list
974	of proposed members of the board of directors or a description
975	of the qualifications for and method of their appointment or
976	election.
977	(c)  The workforce development goals of the center, the
978	curriculum to be offered, and the outcomes and the methods of
979	assessing the extent to which the outcomes are met.
980	(d)  The admissions policy and criteria for evaluating the
981	admission of students.
982	(e)  A description of the staff responsibilities and the
983	proposed qualifications of the teaching staff.
984	(f)  A description of the procedures to be implemented to
985	ensure significant involvement of representatives of business
986	and industry in the operation of the center.
987	(g)  A method for determining whether a student has
988	satisfied the requirements for graduation specified in s.
989	1003.43 and for completion of a postsecondary certificate or
990	degree.
991	(h)  A method for granting secondary and postsecondary
992	diplomas, certificates, and degrees.
993	(i)  A description of and address for the physical facility
994	in which the center will be located.
995	(j)  A method of resolving conflicts between the governing
996	body of the center and the sponsor and between consortium
997	members, if applicable.
998	(k)  A method for reporting student data as required by law
999	and rule.
1000	(l)  The identity of all relatives employed by the charter
1001	technical career center who are related to the center owner,
1002	president, chair of the governing board of directors,
1003	superintendent, governing board member, principal, assistant
1004	principal, or any other person employed by the center who has
1005	equivalent decisionmaking authority. As used in this paragraph,
1006	the term "relative" means father, mother, son, daughter,
1007	brother, sister, husband, wife, father-in-law, mother-in-law,
1008	son-in-law, daughter-in-law, brother-in-law, sister-in-law,
1009	stepfather, stepmother, stepson, stepdaughter, stepbrother,
1010	stepsister, half brother, or half sister.
1011	(m)(l)  Other information required by the district school
1012	board or community college board of trustees.
1013
1014	Students at a center must meet the same testing and academic
1015	performance standards as those established by law and rule for
1016	students at public schools and public technical centers. The
1017	students must also meet any additional assessment indicators
1018	that are included within the charter approved by the district
1019	school board or community college board of trustees.
1020	(5)  APPLICATION.--An application to establish a center
1021	must be submitted by February 1 of the year preceding the school
1022	year in which the center will begin operation. The sponsor must
1023	review the application using an evaluation instrument developed
1024	by the Department of Education and make a final decision on
1025	whether to approve the application and grant the charter by
1026	March 1, and may condition the granting of a charter on the
1027	center's taking certain actions or maintaining certain
1028	conditions. Such actions and conditions must be provided to the
1029	applicant in writing. The district school board or community
1030	college board of trustees is not required to issue a charter to
1031	any person.
1032	(6)  SPONSOR.--A district school board or community college
1033	board of trustees or a consortium of one or more of each may
1034	sponsor a center in the county in which the board has
1035	jurisdiction.
1036	(d)  The Department of Education shall offer or arrange for
1037	training and technical assistance to applicants in developing
1038	business plans and estimating costs and income. This assistance
1039	shall address estimating startup costs, projecting enrollment,
1040	and identifying the types and amounts of state and federal
1041	financial assistance the center will be eligible to receive. The
1042	training shall include instruction in accurate financial
1043	planning and good business practices may provide technical
1044	assistance to an applicant upon written request.
1045	(f)  The sponsor shall monitor and review the center's
1046	progress toward charter goals and shall monitor the center's
1047	revenues and expenditures. The sponsor shall perform the duties
1048	provided for in s. 1002.345.
1049	(8)  ELIGIBLE STUDENTS.--
1050	(a)  A center must be open to all students as space is
1051	available and may not discriminate in admissions policies or
1052	practices on the basis of an individual's physical disability or
1053	proficiency in English or on any other basis that would be
1054	unlawful if practiced by a public school or a community college.
1055	A center may establish reasonable criteria by which to evaluate
1056	prospective students, which criteria must be outlined in the
1057	charter.
1058	(b)  The calculation under s. 1003.03 for class size
1059	compliance for a center shall be the average for the applicable
1060	grade grouping at the school level established at the October
1061	student membership survey of the district in which the center is
1062	operated.
1063	(10)  EXEMPTION FROM STATUTES.--
1064	(c)  A center must comply with the antidiscrimination
1065	provisions of s. 1000.05 and the provisions of s. 1002.33(24)
1066	relating to the employment of relatives.
1067	(13)  BOARD OF DIRECTORS AUTHORITY.--The board of directors
1068	of a center may decide matters relating to the operation of the
1069	school, including budgeting, curriculum, and operating
1070	procedures, subject to the center's charter. The board of
1071	directors is responsible for performing the duties provided for
1072	in s. 1002.345, including monitoring the corrective action plan.
1073	The board of directors must comply with the provisions of s.
1074	1002.33 (25).
1075	Section 10.  Section 1002.345, Florida Statutes, is created
1076	to read:
1077	1002.345  Determination of financial weaknesses and
1078	financial emergencies for charter schools and charter technical
1079	career centers.--This section applies to charter schools
1080	operating pursuant to ss. 1002.33 and 1002.335, and to charter
1081	technical career centers operating pursuant to s. 1002.34.
1082	(1)  FINANCIAL WEAKNESS; REQUIREMENTS.--
1083	(a)  A charter school and a charter technical career center
1084	shall be subject to an expedited review by the sponsor when any
1085	one of the following conditions occurs:
1086	1.  An end-of-year financial deficit.
1087	2.  A substantial decline in student enrollment without a
1088	commensurate reduction in expenses.
1089	3.  Insufficient revenues to pay current operating
1090	expenses.
1091	4.  Insufficient revenues to pay long-term expenses.
1092	5.  Disproportionate administrative expenses.
1093	6.  Excessive debt.
1094	7.  Excessive expenditures.
1095	8.  Inadequate fund balances or reserves.
1096	9.  Failure to meet financial reporting requirements
1097	pursuant to s. 1002.33(9), s. 1002.335(7)(a)7., or s.
1098	1002.34(14).
1099	10.  Weak financial controls or other adverse financial
1100	conditions identified through an annual audit conducted pursuant
1101	to s. 218.39.
1102	11.  Negative financial findings cited in reports by the
1103	Auditor General or the Office of Program Policy Analysis and
1104	Government Accountability.
1105	(b)  A sponsor shall notify the governing board within 7
1106	working days when one or more of the conditions specified in
1107	paragraph (a) occur.
1108	(c)  The governing board and the sponsor shall develop a
1109	corrective action plan and file the plan with the Commissioner
1110	of Education within 30 working days. If the governing board and
1111	the sponsor are unable to agree on a corrective action plan, the
1112	Commissioner of Education shall determine the components of the
1113	plan. The governing board shall implement the plan.
1114	(d)  The governing board shall include the corrective
1115	action plan and the status of its implementation in the annual
1116	progress report to the sponsor that is required under s.
1117	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1118	(e)  If the governing board fails to implement the
1119	corrective action plan within 1 year, the State Board of
1120	Education shall prescribe any steps necessary for the charter
1121	school or the charter technical career center to comply with
1122	state requirements.
1123	(f)  The chair of the governing board shall annually appear
1124	before the State Board of Education and report on the
1125	implementation of the State Board of Education's requirements.
1126	(2)  FINANCIAL EMERGENCY; DEFICIT FUND BALANCE; DEFICIT NET
1127	ASSETS; REQUIREMENTS.--
1128	(a)  A charter school and a charter technical career center
1129	shall provide for a certified public accountant or auditor to
1130	conduct an annual financial audit in accordance with s. 218.39.
1131	(b)  The charter shall ensure that, if an annual financial
1132	audit of a charter school or charter technical career center
1133	reveals one or more of the conditions in s. 218.503(1) have
1134	occurred or will occur if action is not taken or if a charter
1135	school or charter technical career center has a deficit fund
1136	balance or deficit net assets, the auditor must notify the
1137	governing board of the charter school or charter technical
1138	career center, as appropriate, the sponsor, and the Commissioner
1139	of Education.
1140	(c)1.  When a financial audit conducted by a certified
1141	public accountant in accordance with s. 218.39 reveals that one
1142	or more of the conditions in s. 218.503(1) have occurred or will
1143	occur if action is not taken or when a deficit fund balance or
1144	deficit net assets exist, the auditor shall notify and provide
1145	the financial audit to the governing board of the charter school
1146	or charter technical career center, as appropriate, the sponsor,
1147	and the Commissioner of Education within 7 working days after
1148	the finding is made.
1149	2.  When the charter school or charter technical career
1150	center is found to be in a state of financial emergency pursuant
1151	to s. 218.503(4), the charter school or charter technical career
1152	center shall file a detailed financial recovery plan as provided
1153	for in s. 218.503 with the sponsor within 30 days after being
1154	notified by the Commissioner of Education that a financial
1155	recovery plan is needed.
1156	(d)  The sponsor shall file a copy of the financial
1157	recovery plan with the Commissioner of Education.
1158	(e)  The governing board shall include the financial
1159	recovery plan and the status of its implementation in the annual
1160	progress report to the sponsor which is required under s.
1161	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1162	(3)  REPORT.--The Commissioner of Education shall annually
1163	report to the State Board of Education each charter school and
1164	charter technical career center that is subject to a financial
1165	recovery plan or a corrective action plan under this section.
1166	(4)  RULES.--The State Board of Education shall adopt rules
1167	pursuant to ss. 120.536(1) and 120.54 for developing financial
1168	recovery and corrective action plans and establishing the
1169	criteria for defining each of the conditions in subsection (1).
1170	(5)  TECHNICAL ASSISTANCE.--The Department of Education
1171	shall provide technical assistance to charter schools, charter
1172	technical career centers, governing boards, and sponsors in
1173	developing financial recovery and corrective action plans.
1174	(6)  FAILURE TO CORRECT DEFICIENCIES.--The sponsor may
1175	choose not to renew or may terminate a charter if the charter
1176	school or charter technical career center fails to correct the
1177	deficiencies noted in the corrective action plan within 1 year
1178	or exhibits one or more financial emergency conditions as
1179	provided in s. 218.503(1)(a)-(d) for 2 consecutive years. This
1180	subsection is not intended to affect a sponsor's authority to
1181	terminate or not renew a charter pursuant to s. 1002.33(8).
1182	Section 11.  Paragraph (f) is added to subsection (2) of
1183	section 1013.62, Florida Statutes, to read:
1184	1013.62  Charter schools capital outlay funding.--
1185	(2)  A charter school's governing body may use charter
1186	school capital outlay funds for the following purposes:
1187	(f)  Any of the purposes set forth in s. 1011.71(2).
1188
1189	Conversion charter schools may use capital outlay funds received
1190	through the reduction in the administrative fee provided in s.
1191	1002.33(20) for renovation, repair, and maintenance of school
1192	facilities that are owned by the sponsor.
1193
1194
1195	-----------------------------------------------------
1196	T I T L E  A M E N D M E N T
1197	Remove lines 34-92 and insert:
1198	charter schools to provide quarterly or monthly financial
1199	statements under specified circumstances; revising
1200	provisions relating to a charter school's annual report;
1201	revising provisions relating to student eligibility to
1202	attend a charter school; revising the calculation
1203	requirements for class size compliance by charter schools;
1204	providing requirements for distribution of funds to
1205	charter schools; providing priority to charter schools for
1206	the lease or purchase of surplused, disposed, or unused
1207	public school property and facilities; requiring a sponsor
1208	to provide additional services relating to school lunches
1209	under the federal lunch program; providing for the
1210	disclosure of the performance of charter schools that are
1211	not given a school grade or school improvement rating;
1212	providing reporting requirements; providing restrictions
1213	for the employment of relatives by charter school
1214	personnel; providing that members of a charter school
1215	governing board are subject to certain standards of
1216	conduct and financial disclosure; amending s. 1002.335,
1217	F.S., relating to the Florida Schools of Excellence
1218	Commission; revising provisions relating to exclusive
1219	authority to authorize charter schools; eliminating the
1220	requirement for district school boards to annually seek
1221	continued exclusivity from the State Board of Education;
1222	providing that a grant or denial of exclusivity shall be
1223	effective for 4 fiscal years; specifying additional
1224	components of cosponsor agreements; providing for
1225	application of performance disclosure requirements for
1226	charter schools that are not graded or rated; providing
1227	for application of restrictions on the employment of
1228	relatives and certain standards of conduct and financial
1229	disclosure; amending s. 1002.34, F.S.; providing
1230	additional duties for charter technical career centers,
1231	applicants, sponsors, and governing boards; requiring the
1232	Department of Education to offer or arrange training and
1233	assistance to applicants for a charter technical career
1234	center; revising the calculation requirements for class
1235	size compliance by charter technical career centers;
1236	providing for application of restrictions on the
1237	employment of relatives and certain standards of conduct
1238	and financial disclosure; creating s. 1002.345, F.S.;
1239	establishing criteria and requirements for charter schools
1240	and charter technical career centers that have financial
1241	weaknesses or are in a state of financial emergency;
1242	establishing requirements for charter schools, charter
1243	technical career centers, governing boards, and sponsors;
1244	requiring financial audits of charter schools and charter
1245	technical career centers; providing for corrective action
1246	and financial recovery plans; providing for duties of
1247	auditors, the Commissioner of Education, and the
1248	Department of Education; requiring the State Board of
1249	Education to adopt rules; providing grounds for
1250	termination or nonrenewal of a charter; amending s.
1251	1013.62, F.S.; authorizing additional uses for charter
1252	school capital outlay funds; providing an effective date.

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