CS/CS for HB 1259 & HB 1301

1	A bill to be entitled
2	An act relating to education; amending s. 11.45, F.S.,
3	relating to audit reports and rules by the Auditor
4	General; conforming provisions related to changes in the
5	entities subject to a state of financial emergency;
6	amending s. 121.091, F.S.; increasing the period of time
7	during which certain charter school instructional
8	personnel may participate in the Florida Retirement System
9	Deferred Retirement Option Program; extending such
10	participation to certain school district prekindergarten
11	instructional personnel; deleting an obsolete provision;
12	amending ss. 218.50 and 218.501, F.S.; conforming
13	provisions related to changes in the entities subject to a
14	state of financial emergency; amending ss. 218.503 and
15	218.504, F.S.; providing that charter technical career
16	centers are subject to certain requirements in the event
17	of a financial emergency; requiring that the sponsor and
18	Legislative Auditing Committee be notified of certain
19	conditions; providing that the Commissioner of Education
20	may require a financial recovery plan if certain
21	conditions exist for a charter school or charter technical
22	career center; amending s. 1002.33, F.S.; providing for
23	duties of charter school sponsors and governing boards
24	when charter schools and charter technical career centers
25	experience a material financial weakness or a financial
26	emergency; specifying forms and evaluation instruments to
27	be used by charter school applicants and sponsors;
28	revising provisions relating to appeal of a charter school
29	application denial; deleting the auditing requirements and
30	financial emergency provisions for charter schools;
31	requiring charter schools to disclose the identity of
32	relatives of charter school personnel; revising provisions
33	relating to charter school renewal terms; requiring
34	charter schools to provide quarterly financial statements;
35	revising provisions relating to a charter school's annual
36	report; revising provisions relating to student
37	eligibility to attend a charter school; revising the
38	calculation requirements for class size compliance by
39	charter schools; providing requirements for distribution
40	of funds to charter schools; providing priority to charter
41	schools for the lease or purchase of public school
42	property and facilities; requiring a sponsor to provide
43	additional services relating to school lunches under the
44	federal lunch program; providing for the disclosure of the
45	performance of charter schools that are not given a school
46	grade or school improvement rating; providing reporting
47	requirements; providing restrictions for the employment of
48	relatives by charter school personnel; providing that
49	members of a charter school governing board are subject to
50	certain standards of conduct and financial disclosure;
51	amending s. 1002.335, F.S., relating to the Florida
52	Schools of Excellence Commission; revising provisions
53	relating to exclusive authority to authorize charter
54	schools; eliminating the requirement for district school
55	boards to annually seek continued exclusivity from the
56	State Board of Education; providing that a grant or denial
57	of exclusivity shall be effective for 4 fiscal years;
58	specifying additional components of cosponsor agreements;
59	providing for application of performance disclosure
60	requirements for charter schools that are not graded or
61	rated; providing for application of restrictions on the
62	employment of relatives and certain standards of conduct
63	and financial disclosure; amending s. 1002.34, F.S.;
64	providing additional duties for charter technical career
65	centers, applicants, sponsors, and governing boards;
66	requiring the Department of Education to offer or arrange
67	training and assistance to applicants for a charter
68	technical career center; revising the calculation
69	requirements for class size compliance by charter
70	technical career centers; providing for application of
71	restrictions on the employment of relatives and certain
72	standards of conduct and financial disclosure; creating s.
73	1002.345, F.S.; establishing criteria and requirements for
74	charter schools and charter technical career centers that
75	have material financial weaknesses or are in a state of
76	financial emergency; establishing requirements for charter
77	schools, charter technical career centers, governing
78	boards, and sponsors; requiring financial audits of
79	charter schools and charter technical career centers;
80	providing for corrective action and financial recovery
81	plans; providing for duties of auditors, the Commissioner
82	of Education, and the Department of Education; requiring
83	the State Board of Education to adopt rules; providing
84	grounds for termination or nonrenewal of a charter;
85	amending s. 1011.71, F.S., relating to district school
86	tax; providing that school boards must share an equitable
87	amount of capital improvement millage with charter
88	schools; amending s. 1013.62, F.S.; authorizing additional
89	uses for charter school capital outlay funds; amending s.
90	1013.735, F.S.; providing charter schools with a specified
91	portion of the appropriation for the Classrooms for Kids
92	Program; providing an effective date.
93
94	Be It Enacted by the Legislature of the State of Florida:
95
96	Section 1.  Paragraph (e) of subsection (7) and subsection
97	(8) of section 11.45, Florida Statutes, are amended to read:
98	11.45  Definitions; duties; authorities; reports; rules.--
99	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
100	(e)  The Auditor General shall notify the Governor or the
101	Commissioner of Education, as appropriate, and the Legislative
102	Auditing Committee of any audit report reviewed by the Auditor
103	General pursuant to paragraph (b) which contains a statement
104	that a local governmental entity, charter school, charter
105	technical career center, or district school board has met one or
106	more of the conditions specified in s. 218.503. If the Auditor
107	General requests a clarification regarding information included
108	in an audit report to determine whether a local governmental
109	entity, charter school, charter technical career center, or
110	district school board has met one or more of the conditions
111	specified in s. 218.503, the requested clarification must be
112	provided within 45 days after the date of the request. If the
113	local governmental entity, charter school, charter technical
114	career center, or district school board does not comply with the
115	Auditor General's request, the Auditor General shall notify the
116	Legislative Auditing Committee. If, after obtaining the
117	requested clarification, the Auditor General determines that the
118	local governmental entity, charter school, charter technical
119	career center, or district school board has met one or more of
120	the conditions specified in s. 218.503, he or she shall notify
121	the Governor or the Commissioner of Education, as appropriate,
122	and the Legislative Auditing Committee.
123	(8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
124	consultation with the Board of Accountancy, shall adopt rules
125	for the form and conduct of all financial audits performed by
126	independent certified public accountants pursuant to ss.
127	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
128	audits of local governmental entities, charter schools, charter
129	technical career centers, and district school boards must
130	include, but are not limited to, requirements for the reporting
131	of information necessary to carry out the purposes of the Local
132	Governmental Entity, Charter School, Charter Technical Career
133	Center, and District School Board Financial Emergencies Act as
134	stated in s. 218.501.
135	Section 2.  Paragraphs (a) and (b) of subsection (13) of
136	section 121.091, Florida Statutes, are amended to read:
137	121.091  Benefits payable under the system.--Benefits may
138	not be paid under this section unless the member has terminated
139	employment as provided in s. 121.021(39)(a) or begun
140	participation in the Deferred Retirement Option Program as
141	provided in subsection (13), and a proper application has been
142	filed in the manner prescribed by the department. The department
143	may cancel an application for retirement benefits when the
144	member or beneficiary fails to timely provide the information
145	and documents required by this chapter and the department's
146	rules. The department shall adopt rules establishing procedures
147	for application for retirement benefits and for the cancellation
148	of such application when the required information or documents
149	are not received.
150	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
151	subject to the provisions of this section, the Deferred
152	Retirement Option Program, hereinafter referred to as the DROP,
153	is a program under which an eligible member of the Florida
154	Retirement System may elect to participate, deferring receipt of
155	retirement benefits while continuing employment with his or her
156	Florida Retirement System employer. The deferred monthly
157	benefits shall accrue in the System Trust Fund on behalf of the
158	participant, plus interest compounded monthly, for the specified
159	period of the DROP participation, as provided in paragraph (c).
160	Upon termination of employment, the participant shall receive
161	the total DROP benefits and begin to receive the previously
162	determined normal retirement benefits. Participation in the DROP
163	does not guarantee employment for the specified period of DROP.
164	Participation in the DROP by an eligible member beyond the
165	initial 60-month period as authorized in this subsection shall
166	be on an annual contractual basis for all participants.
167	(a)  Eligibility of member to participate in the DROP.--All
168	active Florida Retirement System members in a regularly
169	established position, and all active members of either the
170	Teachers' Retirement System established in chapter 238 or the
171	State and County Officers' and Employees' Retirement System
172	established in chapter 122, which systems are consolidated
173	within the Florida Retirement System under s. 121.011, are
174	eligible to elect participation in the DROP if provided that:
175	1.  The member is not a renewed member of the Florida
176	Retirement System under s. 121.122, or a member of the State
177	Community College System Optional Retirement Program under s.
178	121.051, the Senior Management Service Optional Annuity Program
179	under s. 121.055, or the optional retirement program for the
180	State University System under s. 121.35.
181	2.  Except as provided in subparagraph 6., election to
182	participate is made within 12 months immediately following the
183	date on which the member first reaches normal retirement date,
184	or, for a member who reaches normal retirement date based on
185	service before he or she reaches age 62, or age 55 for Special
186	Risk Class members, election to participate may be deferred to
187	the 12 months immediately following the date the member attains
188	57, or age 52 for Special Risk Class members. For a member who
189	first reached normal retirement date or the deferred eligibility
190	date described above prior to the effective date of this
191	section, election to participate shall be made within 12 months
192	after the effective date of this section. A member who fails to
193	make an election within the such 12-month limitation period
194	shall forfeit all rights to participate in the DROP. The member
195	shall advise his or her employer and the division in writing of
196	the date on which the DROP shall begin. The Such beginning date
197	may be subsequent to the 12-month election period, but must be
198	within the 60-month or, with respect to members who are
199	instructional personnel employed by the Florida School for the
200	Deaf and the Blind and who have received authorization by the
201	Board of Trustees of the Florida School for the Deaf and the
202	Blind to participate in the DROP beyond 60 months, or who are
203	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
204	grades K-12 and who have received authorization by the district
205	school superintendent to participate in the DROP beyond 60
206	months, the 96-month maximum participation limitation period as
207	provided in subparagraph (b)1. When establishing eligibility of
208	the member to participate in the DROP for the 60-month or, with
209	respect to members who are instructional personnel employed by
210	the Florida School for the Deaf and the Blind and who have
211	received authorization by the Board of Trustees of the Florida
212	School for the Deaf and the Blind to participate in the DROP
213	beyond 60 months, or who are instructional personnel as defined
214	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
215	authorization by the district school superintendent to
216	participate in the DROP beyond 60 months, the 96-month maximum
217	participation period, the member may elect to include or exclude
218	any optional service credit purchased by the member from the
219	total service used to establish the normal retirement date. A
220	member with dual normal retirement dates is shall be eligible to
221	elect to participate in DROP within 12 months after attaining
222	normal retirement date in either class.
223	3.  The employer of a member electing to participate in the
224	DROP, or employers if dually employed, shall acknowledge in
225	writing to the division the date the member's participation in
226	the DROP begins and the date the member's employment and DROP
227	participation will terminate.
228	4.  Simultaneous employment of a participant by additional
229	Florida Retirement System employers subsequent to the
230	commencement of participation in the DROP is shall be
231	permissible provided such employers acknowledge in writing a
232	DROP termination date no later than the participant's existing
233	termination date or the 60-month participation limitation period
234	as provided in subparagraph (b)1.
235	5.  A DROP participant may change employers while
236	participating in the DROP, subject to the following:
237	a.  A change of employment must take place without a break
238	in service so that the member receives salary for each month of
239	continuous DROP participation. If a member receives no salary
240	during a month, DROP participation shall cease unless the
241	employer verifies a continuation of the employment relationship
242	for such participant pursuant to s. 121.021(39)(b).
243	b.  Such participant and new employer shall notify the
244	division of the identity of the new employer on forms required
245	by the division as to the identity of the new employer.
246	c.  The new employer shall acknowledge, in writing, the
247	participant's DROP termination date, which may be extended but
248	not beyond the original 60-month or, with respect to members who
249	are instructional personnel employed by the Florida School for
250	the Deaf and the Blind and who have received authorization by
251	the Board of Trustees of the Florida School for the Deaf and the
252	Blind to participate in the DROP beyond 60 months, or who are
253	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
254	grades K-12 and who have received authorization by the district
255	school superintendent to participate in the DROP beyond 60
256	months, the 96-month maximum participation period provided in
257	subparagraph (b)1., shall acknowledge liability for any
258	additional retirement contributions and interest required if the
259	participant fails to timely terminate employment, and shall be
260	subject to the adjustment required in sub-subparagraph (c)5.d.
261	6.  Effective July 1, 2001, for instructional personnel as
262	defined in s. 1012.01(2), election to participate in the DROP
263	may shall be made at any time following the date on which the
264	member first reaches normal retirement date. The member shall
265	advise his or her employer and the division in writing of the
266	date on which the DROP Deferred Retirement Option Program shall
267	begin. When establishing eligibility of the member to
268	participate in the DROP for the 60-month or, with respect to
269	members who are instructional personnel employed by the Florida
270	School for the Deaf and the Blind and who have received
271	authorization by the Board of Trustees of the Florida School for
272	the Deaf and the Blind to participate in the DROP beyond 60
273	months, or who are instructional personnel as defined in s.
274	1012.01(2)(a)-(d) in grades K-12 and who have received
275	authorization by the district school superintendent to
276	participate in the DROP beyond 60 months, the 96-month maximum
277	participation period, as provided in subparagraph (b)1., the
278	member may elect to include or exclude any optional service
279	credit purchased by the member from the total service used to
280	establish the normal retirement date. A member with dual normal
281	retirement dates is shall be eligible to elect to participate in
282	either class.
283	(b)  Participation in the DROP.--
284	1.  An eligible member may elect to participate in the DROP
285	for a period not to exceed a maximum of 60 calendar months or,
286	with respect to members who are instructional personnel employed
287	by the Florida School for the Deaf and the Blind and who have
288	received authorization by the Board of Trustees of the Florida
289	School for the Deaf and the Blind to participate in the DROP
290	beyond 60 months, or who are instructional personnel as defined
291	in s. 1012.01(2)(a)-(d) in grades K-12 or classroom teachers for
292	prekindergarten students funded under s. 1011.62 and who have
293	received authorization by the district school superintendent to
294	participate in the DROP beyond 60 calendar months, or who are
295	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
296	grades K-12 or classroom teachers for prekindergarten students
297	funded under s. 1011.62 and who are employed by a charter school
298	and who have received authorization from the governing board of
299	the charter school to participate in the DROP beyond 60 calendar
300	months, 96 calendar months immediately following the date on
301	which the member first reaches his or her normal retirement date
302	or the date to which he or she is eligible to defer his or her
303	election to participate as provided in subparagraph (a)2.
304	However, a member who has reached normal retirement date prior
305	to the effective date of the DROP is shall be eligible to
306	participate in the DROP for up to for a period of time not to
307	exceed 60 calendar months or, with respect to members who are
308	instructional personnel employed by the Florida School for the
309	Deaf and the Blind and who have received authorization by the
310	Board of Trustees of the Florida School for the Deaf and the
311	Blind to participate in the DROP beyond 60 months, or who are
312	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
313	grades K-12 and who have received authorization by the district
314	school superintendent to participate in the DROP beyond 60
315	calendar months, 96 calendar months, as appropriate, immediately
316	following the effective date of the DROP, except that a member
317	of the Special Risk Class who has reached normal retirement date
318	prior to the effective date of the DROP and whose total accrued
319	value exceeds 75 percent of average final compensation as of his
320	or her effective date of retirement may shall be eligible to
321	participate in the DROP for no more than 36 calendar months
322	immediately following the effective date of the DROP.
323	2.  Upon deciding to participate in the DROP, the member
324	shall submit, on forms required by the division:
325	a.  A written election to participate in the DROP;
326	b.  Selection of the DROP participation and termination
327	dates, which satisfy the limitations stated in paragraph (a) and
328	subparagraph 1. The Such termination date must shall be in a
329	binding letter of resignation to with the employer, establishing
330	a deferred termination date. The member may change the
331	termination date within the limitations of subparagraph 1., but
332	only with the written approval of the his or her employer;
333	c.  A properly completed DROP application for service
334	retirement as provided in this section; and
335	d.  Any other information required by the division.
336	3.  The DROP participant shall be a retiree under the
337	Florida Retirement System for all purposes, except for paragraph
338	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
339	and 121.122. However, participation in the DROP does not alter
340	the participant's employment status and the member is such
341	employee shall not be deemed retired from employment until his
342	or her deferred resignation is effective and termination occurs
343	as provided in s. 121.021(39).
344	4.  Elected officers shall be eligible to participate in
345	the DROP subject to the following:
346	a.  An elected officer who reaches normal retirement date
347	during a term of office may defer the election to participate in
348	the DROP until the next succeeding term in that office. An Such
349	elected officer who exercises this option may participate in the
350	DROP for up to 60 calendar months or for a period of no longer
351	than the such succeeding term of office, whichever is less.
352	b.  An elected or a nonelected participant may run for a
353	term of office while participating in DROP and, if elected,
354	extend the DROP termination date accordingly, except that,
355	however, if such additional term of office exceeds the 60-month
356	limitation established in subparagraph 1., and the officer does
357	not resign from office within the such 60-month limitation, the
358	retirement and the participant's DROP shall be null and void as
359	provided in sub-subparagraph (c)5.d.
360	c.  An elected officer who is dually employed and elects to
361	participate in DROP shall be required to satisfy the definition
362	of termination within the 60-month or, with respect to members
363	who are instructional personnel employed by the Florida School
364	for the Deaf and the Blind and who have received authorization
365	by the Board of Trustees of the Florida School for the Deaf and
366	the Blind to participate in the DROP beyond 60 months, or who
367	are instructional personnel as defined in s. 1012.01(2)(a)-(d)
368	in grades K-12 and who have received authorization by the
369	district school superintendent to participate in the DROP beyond
370	60 months, the 96-month maximum participation limitation period
371	as provided in subparagraph 1. for the nonelected position and
372	may continue employment as an elected officer as provided in s.
373	121.053. The elected officer shall will be enrolled as a renewed
374	member in the Elected Officers' Class or the Regular Class, as
375	provided in ss. 121.053 and 121.122, on the first day of the
376	month after termination of employment in the nonelected position
377	and termination of DROP. Distribution of the DROP benefits shall
378	be made as provided in paragraph (c).
379	Section 3.  Section 218.50, Florida Statutes, is amended to
380	read:
381	218.50  Short title.--Sections 218.50-218.504 may be cited
382	as the "Local Governmental Entity, Charter School, Charter
383	Technical Career Center, and District School Board Financial
384	Emergencies Act."
385	Section 4.  Section 218.501, Florida Statutes, is amended
386	to read:
387	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
388	(1)  To promote the fiscal responsibility of local
389	governmental entities, charter schools, charter technical career
390	centers, and district school boards.
391	(2)  To assist local governmental entities, charter
392	schools, charter technical career centers, and district school
393	boards in providing essential services without interruption and
394	in meeting their financial obligations.
395	(3)  To assist local governmental entities, charter
396	schools, charter technical career centers, and district school
397	boards through the improvement of local financial management
398	procedures.
399	Section 5.  Subsections (1), (2), and (4) of section
400	218.503, Florida Statutes, are amended to read:
401	218.503  Determination of financial emergency.--
402	(1)  Local governmental entities, charter schools, charter
403	technical career centers, and district school boards shall be
404	subject to review and oversight by the Governor, the charter
405	school sponsor, the charter technical career center sponsor, or
406	the Commissioner of Education, as appropriate, when any one of
407	the following conditions occurs:
408	(a)  Failure within the same fiscal year in which due to
409	pay short-term loans or failure to make bond debt service or
410	other long-term debt payments when due, as a result of a lack of
411	funds.
412	(b)  Failure to pay uncontested claims from creditors
413	within 90 days after the claim is presented, as a result of a
414	lack of funds.
415	(c)  Failure to transfer at the appropriate time, due to
416	lack of funds:
417	1.  Taxes withheld on the income of employees; or
418	2.  Employer and employee contributions for:
419	a.  Federal social security; or
420	b.  Any pension, retirement, or benefit plan of an
421	employee.
422	(d)  Failure for one pay period to pay, due to lack of
423	funds:
424	1.  Wages and salaries owed to employees; or
425	2.  Retirement benefits owed to former employees.
426	(e)  An unreserved or total fund balance or retained
427	earnings deficit, or unrestricted or total net assets deficit,
428	as reported on the balance sheet or statement of net assets on
429	the general purpose or fund financial statements, for which
430	sufficient resources of the local governmental entity, as
431	reported on the balance sheet or statement of net assets on the
432	general purpose or fund financial statements, are not available
433	to cover the deficit. Resources available to cover reported
434	deficits include net assets that are not otherwise restricted by
435	federal, state, or local laws, bond covenants, contractual
436	agreements, or other legal constraints. Fixed or capital assets,
437	the disposal of which would impair the ability of a local
438	governmental entity to carry out its functions, are not
439	considered resources available to cover reported deficits.
440	(2)  A local governmental entity shall notify the Governor
441	and the Legislative Auditing Committee, a charter school shall
442	notify the charter school sponsor and the Legislative Auditing
443	Committee, a charter technical career center shall notify the
444	charter technical career center sponsor and the Legislative
445	Auditing Committee, and a district school board shall notify the
446	Commissioner of Education and the Legislative Auditing
447	Committee, when one or more of the conditions specified in
448	subsection (1) have occurred or will occur if action is not
449	taken to assist the local governmental entity, charter school,
450	charter technical career center, or district school board. In
451	addition, any state agency must, within 30 days after a
452	determination that one or more of the conditions specified in
453	subsection (1) have occurred or will occur if action is not
454	taken to assist the local governmental entity, charter school,
455	charter technical career center, or district school board,
456	notify the Governor, charter school sponsor, charter technical
457	career center sponsor, or the Commissioner of Education, as
458	appropriate, and the Legislative Auditing Committee.
459	(4)(a)  Upon notification that one or more of the
460	conditions in subsection (1) exist, the charter school sponsor
461	or the sponsor's designee and the Commissioner of Education
462	shall contact the charter school governing body to determine
463	what actions have been taken by the charter school governing
464	body to resolve the condition. The Commissioner of Education may
465	charter school sponsor has the authority to require and approve
466	a financial recovery plan, to be prepared by the charter school
467	governing body, prescribing actions that will cause the charter
468	school to no longer be subject to this section. The Department
469	of Education shall establish guidelines for developing such
470	plans.
471	(b)  Upon notification that one or more of the conditions
472	in subsection (1) exist, the charter technical career center
473	sponsor or the sponsor's designee and the Commissioner of
474	Education shall contact the charter technical career center
475	governing body to determine what actions have been taken by the
476	charter technical career center governing body to resolve the
477	condition. The Commissioner of Education may require and approve
478	a financial recovery plan, to be prepared by the charter
479	technical career center governing body, prescribing actions that
480	will cause the charter technical career center to no longer be
481	subject to this section.
482	(c)  The Commissioner of Education shall determine if the
483	charter school or charter technical career center needs a
484	financial recovery plan to resolve the condition. If the
485	Commissioner of Education determines that a financial recovery
486	plan is needed, the charter school or charter technical career
487	center is considered to be in a state of financial emergency.
488
489	The Department of Education, with the involvement of sponsors,
490	charter schools, and charter technical career centers, shall
491	establish guidelines for developing such plans.
492	Section 6.  Section 218.504, Florida Statutes, is amended
493	to read:
494	218.504  Cessation of state action.--The Governor or the
495	Commissioner of Education, as appropriate, has the authority to
496	terminate all state actions pursuant to ss. 218.50-218.504.
497	Cessation of state action must not occur until the Governor or
498	the Commissioner of Education, as appropriate, has determined
499	that:
500	(1)  The local governmental entity, charter school, charter
501	technical career center, or district school board:
502	(a)  Has established and is operating an effective
503	financial accounting and reporting system.
504	(b)  Has resolved the conditions outlined in s. 218.503(1).
505	(2)  None of the conditions outlined in s. 218.503(1)
506	exists.
507	Section 7.  Paragraph (b) of subsection (5), paragraphs
508	(a), (b), and (d) of subsection (6), paragraphs (a) and (b) of
509	subsection (7), paragraphs (g) through (q) of subsection (9),
510	paragraphs (a) and (h) of subsection (10), paragraphs (b) and
511	(c) of subsection (17), paragraph (e) of subsection (18),
512	paragraph (a) of subsection (20), and subsections (21) and (23)
513	of section 1002.33, Florida Statutes, are amended, present
514	subsection (24) is renumbered as subsection (26), and new
515	subsections (24) and (25) are added to that section, to read:
516	1002.33  Charter schools.--
517	(5)  SPONSOR; DUTIES.--
518	(b)  Sponsor duties.--
519	1.a.  The sponsor shall monitor and review the charter
520	school in its progress toward the goals established in the
521	charter.
522	b.  The sponsor shall monitor the revenues and expenditures
523	of the charter school and perform the duties provided for in s.
524	1002.345.
525	c.  The sponsor may approve a charter for a charter school
526	before the applicant has secured space, equipment, or personnel,
527	if the applicant indicates approval is necessary for it to raise
528	working funds.
529	d.  The sponsor's policies shall not apply to a charter
530	school unless mutually agreed to by both the sponsor and the
531	charter school.
532	e.  The sponsor shall ensure that the charter is innovative
533	and consistent with the state education goals established by s.
534	1000.03(5).
535	f.  The sponsor shall ensure that the charter school
536	participates in the state's education accountability system. If
537	a charter school falls short of performance measures included in
538	the approved charter, the sponsor shall report such shortcomings
539	to the Department of Education.
540	g.  The sponsor shall not be liable for civil damages under
541	state law for personal injury, property damage, or death
542	resulting from an act or omission of an officer, employee,
543	agent, or governing body of the charter school.
544	h.  The sponsor shall not be liable for civil damages under
545	state law for any employment actions taken by an officer,
546	employee, agent, or governing body of the charter school.
547	i.  The sponsor's duties to monitor the charter school
548	shall not constitute the basis for a private cause of action.
549	j.  The sponsor shall not impose additional reporting
550	requirements on a charter school without providing reasonable
551	and specific justification in writing to the charter school.
552	2.  Immunity for the sponsor of a charter school under
553	subparagraph 1. applies only with respect to acts or omissions
554	not under the sponsor's direct authority as described in this
555	section.
556	3.  Nothing contained in this paragraph shall be considered
557	a waiver of sovereign immunity by a district school board.
558	4.  A community college may work with the school district
559	or school districts in its designated service area to develop
560	charter schools that offer secondary education. These charter
561	schools must include an option for students to receive an
562	associate degree upon high school graduation. District school
563	boards shall cooperate with and assist the community college on
564	the charter application. Community college applications for
565	charter schools are not subject to the time deadlines outlined
566	in subsection (6) and may be approved by the district school
567	board at any time during the year. Community colleges shall not
568	report FTE for any students who receive FTE funding through the
569	Florida Education Finance Program.
570	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
571	applications are subject to the following requirements:
572	(a)  A person or entity wishing to open a charter school
573	shall prepare and submit an application on a form developed by
574	the Department of Education, which that:
575	1.  Demonstrates how the school will use the guiding
576	principles and meet the statutorily defined purpose of a charter
577	school.
578	2.  Provides a detailed curriculum plan that illustrates
579	how students will be provided services to attain the Sunshine
580	State Standards.
581	3.  Contains goals and objectives for improving student
582	learning and measuring that improvement. These goals and
583	objectives must indicate how much academic improvement students
584	are expected to show each year, how success will be evaluated,
585	and the specific results to be attained through instruction.
586	4.  Describes the reading curriculum and differentiated
587	strategies that will be used for students reading at grade level
588	or higher and a separate curriculum and strategies for students
589	who are reading below grade level. A sponsor shall deny a
590	charter if the school does not propose a reading curriculum that
591	is consistent with effective teaching strategies that are
592	grounded in scientifically based reading research.
593	5.  Contains an annual financial plan for each year
594	requested by the charter for operation of the school for up to 5
595	years. This plan must contain anticipated fund balances based on
596	revenue projections, a spending plan based on projected revenues
597	and expenses, and a description of controls that will safeguard
598	finances and projected enrollment trends.
599	(b)  A sponsor shall receive and review all applications
600	for a charter school using an evaluation instrument developed by
601	the Department of Education. Beginning with the 2007-2008 school
602	year, a sponsor shall receive and consider charter school
603	applications received on or before August 1 of each calendar
604	year for charter schools to be opened at the beginning of the
605	school district's next school year, or to be opened at a time
606	agreed to by the applicant and the sponsor. A sponsor may
607	receive applications later than this date if it chooses. A
608	sponsor may not charge an applicant for a charter any fee for
609	the processing or consideration of an application, and a sponsor
610	may not base its consideration or approval of an application
611	upon the promise of future payment of any kind.
612	1.  In order to facilitate an accurate budget projection
613	process, a sponsor shall be held harmless for FTE students who
614	are not included in the FTE projection due to approval of
615	charter school applications after the FTE projection deadline.
616	In a further effort to facilitate an accurate budget projection,
617	within 15 calendar days after receipt of a charter school
618	application, a sponsor shall report to the Department of
619	Education the name of the applicant entity, the proposed charter
620	school location, and its projected FTE.
621	2.  In order to ensure fiscal responsibility, an
622	application for a charter school shall include a full accounting
623	of expected assets, a projection of expected sources and amounts
624	of income, including income derived from projected student
625	enrollments and from community support, and an expense
626	projection that includes full accounting of the costs of
627	operation, including start-up costs.
628	3.  A sponsor shall by a majority vote approve or deny an
629	application no later than 60 calendar days after the application
630	is received, unless the sponsor and the applicant mutually agree
631	in writing to temporarily postpone the vote to a specific date,
632	at which time the sponsor shall by a majority vote approve or
633	deny the application. If the sponsor fails to act on the
634	application, an applicant may appeal to the State Board of
635	Education as provided in paragraph (c). If an application is
636	denied, the sponsor shall, within 10 calendar days, articulate
637	in writing the specific reasons, based upon good cause,
638	supporting its denial of the charter application and shall
639	provide the letter of denial and supporting documentation to the
640	applicant and to the Department of Education supporting those
641	reasons.
642	4.  For budget projection purposes, the sponsor shall
643	report to the Department of Education the approval or denial of
644	a charter application within 10 calendar days after such
645	approval or denial. In the event of approval, the report to the
646	Department of Education shall include the final projected FTE
647	for the approved charter school.
648	5.  Upon approval of a charter application, the initial
649	startup shall commence with the beginning of the public school
650	calendar for the district in which the charter is granted unless
651	the sponsor allows a waiver of this provision for good cause.
652	(d)  For charter school applications in school districts
653	that have not been granted exclusive authority to sponsor
654	charter schools pursuant to s. 1002.335(5), the right to appeal
655	an application denial under paragraph (c) shall be contingent on
656	the applicant having submitted the same or a substantially
657	similar application to the district school board and the Florida
658	Schools of Excellence Commission or one of its cosponsors. Any
659	such applicant whose application is denied by the commission or
660	one of its cosponsors and subsequent to its denial by the
661	district school board may exercise its right to appeal the
662	district school board's denial under paragraph (c) within 30
663	days after receipt of the commission's or cosponsor's denial or
664	failure to act on the application. However, the applicant
665	forfeits its right to appeal under paragraph (c) if it fails to
666	submit its application to the commission or one of its
667	cosponsors by August 1 of the school year immediately following
668	the district school board's denial of the application.
669	(7)  CHARTER.--The major issues involving the operation of
670	a charter school shall be considered in advance and written into
671	the charter. The charter shall be signed by the governing body
672	of the charter school and the sponsor, following a public
673	hearing to ensure community input.
674	(a)  The charter shall address, and criteria for approval
675	of the charter shall be based on:
676	1.  The school's mission, the students to be served, and
677	the ages and grades to be included.
678	2.  The focus of the curriculum, the instructional methods
679	to be used, any distinctive instructional techniques to be
680	employed, and identification and acquisition of appropriate
681	technologies needed to improve educational and administrative
682	performance which include a means for promoting safe, ethical,
683	and appropriate uses of technology which comply with legal and
684	professional standards. The charter shall ensure that reading is
685	a primary focus of the curriculum and that resources are
686	provided to identify and provide specialized instruction for
687	students who are reading below grade level. The curriculum and
688	instructional strategies for reading must be consistent with the
689	Sunshine State Standards and grounded in scientifically based
690	reading research.
691	3.  The current incoming baseline standard of student
692	academic achievement, the outcomes to be achieved, and the
693	method of measurement that will be used. The criteria listed in
694	this subparagraph shall include a detailed description for each
695	of the following:
696	a.  How the baseline student academic achievement levels
697	and prior rates of academic progress will be established.
698	b.  How these baseline rates will be compared to rates of
699	academic progress achieved by these same students while
700	attending the charter school.
701	c.  To the extent possible, how these rates of progress
702	will be evaluated and compared with rates of progress of other
703	closely comparable student populations.
704
705	The district school board is required to provide academic
706	student performance data to charter schools for each of their
707	students coming from the district school system, as well as
708	rates of academic progress of comparable student populations in
709	the district school system.
710	4.  The methods used to identify the educational strengths
711	and needs of students and how well educational goals and
712	performance standards are met by students attending the charter
713	school. Included in the methods is a means for the charter
714	school to ensure accountability to its constituents by analyzing
715	student performance data and by evaluating the effectiveness and
716	efficiency of its major educational programs. Students in
717	charter schools shall, at a minimum, participate in the
718	statewide assessment program created under s. 1008.22.
719	5.  In secondary charter schools, a method for determining
720	that a student has satisfied the requirements for graduation in
721	s. 1003.43.
722	6.  A method for resolving conflicts between the governing
723	body of the charter school and the sponsor.
724	7.  The admissions procedures and dismissal procedures,
725	including the school's code of student conduct.
726	8.  The ways by which the school will achieve a
727	racial/ethnic balance reflective of the community it serves or
728	within the racial/ethnic range of other public schools in the
729	same school district.
730	9.  The financial and administrative management of the
731	school, including a reasonable demonstration of the professional
732	experience or competence of those individuals or organizations
733	applying to operate the charter school or those hired or
734	retained to perform such professional services and the
735	description of clearly delineated responsibilities and the
736	policies and practices needed to effectively manage the charter
737	school. A description of internal audit procedures and
738	establishment of controls to ensure that financial resources are
739	properly managed must be included. Both public sector and
740	private sector professional experience shall be equally valid in
741	such a consideration.
742	10.  The asset and liability projections required in the
743	application which are incorporated into the charter and which
744	shall be compared with information provided in the annual report
745	of the charter school. The charter shall ensure that, if a
746	charter school internal audit or annual financial audit reveals
747	a state of financial emergency as defined in s. 218.503 or
748	deficit financial position, the auditors are required to notify
749	the charter school governing board, the sponsor, and the
750	Department of Education. The internal auditor shall report such
751	findings in the form of an exit interview to the principal or
752	the principal administrator of the charter school and the chair
753	of the governing board within 7 working days after finding the
754	state of financial emergency or deficit position. A final report
755	shall be provided to the entire governing board, the sponsor,
756	and the Department of Education within 14 working days after the
757	exit interview. When a charter school is in a state of financial
758	emergency, the charter school shall file a detailed financial
759	recovery plan with the sponsor. The department, with the
760	involvement of both sponsors and charter schools, shall
761	establish guidelines for developing such plans.
762	11.  A description of procedures that identify various
763	risks and provide for a comprehensive approach to reduce the
764	impact of losses; plans to ensure the safety and security of
765	students and staff; plans to identify, minimize, and protect
766	others from violent or disruptive student behavior; and the
767	manner in which the school will be insured, including whether or
768	not the school will be required to have liability insurance,
769	and, if so, the terms and conditions thereof and the amounts of
770	coverage.
771	12.  The term of the charter which shall provide for
772	cancellation of the charter if insufficient progress has been
773	made in attaining the student achievement objectives of the
774	charter and if it is not likely that such objectives can be
775	achieved before expiration of the charter. The initial term of a
776	charter shall be for 4 or 5 years. In order to facilitate access
777	to long-term financial resources for charter school
778	construction, charter schools that are operated by a
779	municipality or other public entity as provided by law are
780	eligible for up to a 15-year charter, subject to approval by the
781	district school board. A charter lab school is eligible for a
782	charter for a term of up to 15 years. In addition, to facilitate
783	access to long-term financial resources for charter school
784	construction, charter schools that are operated by a private,
785	not-for-profit, s. 501(c)(3) status corporation are eligible for
786	up to a 15-year charter, subject to approval by the district
787	school board. Such long-term charters remain subject to annual
788	review and may be terminated during the term of the charter, but
789	only according to the provisions set forth in subsection (8).
790	13.  The facilities to be used and their location.
791	14.  The qualifications to be required of the teachers and
792	the potential strategies used to recruit, hire, train, and
793	retain qualified staff to achieve best value.
794	15.  The governance structure of the school, including the
795	status of the charter school as a public or private employer as
796	required in paragraph (12)(i).
797	16.  A timetable for implementing the charter which
798	addresses the implementation of each element thereof and the
799	date by which the charter shall be awarded in order to meet this
800	timetable.
801	17.  In the case of an existing public school being
802	converted to charter status, alternative arrangements for
803	current students who choose not to attend the charter school and
804	for current teachers who choose not to teach in the charter
805	school after conversion in accordance with the existing
806	collective bargaining agreement or district school board rule in
807	the absence of a collective bargaining agreement. However,
808	alternative arrangements shall not be required for current
809	teachers who choose not to teach in a charter lab school, except
810	as authorized by the employment policies of the state university
811	which grants the charter to the lab school.
812	18.  Full disclosure of the identity of all relatives
813	employed by the charter school who are related to the charter
814	school owner, president, chair of the governing board of
815	directors, superintendent, governing board member, principal,
816	assistant principal, or any other person employed by the charter
817	school having equivalent decisionmaking authority. For the
818	purpose of this subparagraph, the term "relative" means father,
819	mother, son, daughter, brother, sister, husband, wife, father-
820	in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-
821	law, sister-in-law, stepfather, stepmother, stepson,
822	stepdaughter, stepbrother, stepsister, half brother, or half
823	sister.
824	(b)1.  A charter may be renewed if provided that a program
825	review demonstrates that the criteria in paragraph (a) have been
826	successfully accomplished and that none of the grounds for
827	nonrenewal established by paragraph (8)(a) has been documented.
828	In order to facilitate long-term financing for charter school
829	construction, a charter school that has operated schools
830	operating for a minimum of 3 years, that has received a school
831	grade of at least a "C" pursuant to s. 1008.34 during the
832	previous 3 years, and that demonstrates demonstrating exemplary
833	academic programming and fiscal management must be offered are
834	eligible for a 15-year charter renewal. Such long-term charter
835	is subject to annual review and may be terminated during the
836	term of the charter pursuant to subsection (8).
837	2.  The 15-year charter renewal that may be granted
838	pursuant to subparagraph 1. shall be granted to a charter school
839	that has received a school grade of "A" or "B" pursuant to s.
840	1008.34 in 3 of the past 4 years and is not in a state of
841	financial emergency or deficit position as defined by this
842	section. Such long-term charter is subject to annual review and
843	may be terminated during the term of the charter pursuant to
844	subsection (8).
845	(9)  CHARTER SCHOOL REQUIREMENTS.--
846	(g)  A charter school shall provide for an annual financial
847	audit in accordance with s. 218.39. Financial audits that reveal
848	a state of financial emergency as defined in s. 218.503 and are
849	conducted by a certified public accountant or auditor in
850	accordance with s. 218.39 shall be provided to the governing
851	body of the charter school within 7 working days after finding
852	that a state of financial emergency exists. When a charter
853	school is found to be in a state of financial emergency by a
854	certified public accountant or auditor, the charter school must
855	file a detailed financial recovery plan with the sponsor within
856	30 days after receipt of the audit.
857	(g)(h)  In order to provide financial information that is
858	comparable to that reported for other public schools, charter
859	schools are to maintain all financial records which constitute
860	their accounting system:
861	1.  In accordance with the accounts and codes prescribed in
862	the most recent issuance of the publication titled "Financial
863	and Program Cost Accounting and Reporting for Florida Schools";
864	or
865	2.  At the discretion of the charter school governing
866	board, a charter school may elect to follow generally accepted
867	accounting standards for not-for-profit organizations, but must
868	reformat this information for reporting according to this
869	paragraph.
870
871	Charter schools shall provide annual financial report and
872	program cost report information in the state-required formats
873	for inclusion in district reporting in compliance with s.
874	1011.60(1). Charter schools that are operated by a municipality
875	or are a component unit of a parent nonprofit organization may
876	use the accounting system of the municipality or the parent but
877	must reformat this information for reporting according to this
878	paragraph. A charter school shall provide quarterly financial
879	statements to the sponsor.
880	(h)(i)  The governing board of the charter school shall
881	annually adopt and maintain an operating budget.
882	(i)(j)  The governing body of the charter school shall
883	exercise continuing oversight over charter school operations.
884	(j)(k)  The governing body of the charter school shall be
885	responsible for:
886	1.  Ensuring that the charter school has retained the
887	services of a certified public accountant or auditor for the
888	annual financial audit, pursuant to s. 1002.345(2) paragraph
889	(g), who shall submit the report to the governing body.
890	2.  Reviewing and approving the audit report, including
891	audit findings and recommendations for the financial recovery
892	plan.
893	3.a.  Performing the duties provided for in s. 1002.345,
894	including monitoring a corrective action plan.
895	b.  Monitoring a financial recovery plan in order to ensure
896	compliance.
897	4.  Participating in governance training approved by the
898	department that must include government in the sunshine,
899	conflicts of interest, ethics, and financial responsibility.
900	(k)(l)  The governing body of the charter school shall
901	report its progress annually to its sponsor, which shall forward
902	the report to the Commissioner of Education at the same time as
903	other annual school accountability reports. The Department of
904	Education shall develop a uniform, online annual accountability
905	report format to be completed by charter schools. This report
906	shall be easy to utilize and contain demographic information,
907	student performance data, and financial accountability
908	information. A charter school may directly access, complete, and
909	correct school data and information in the online accountability
910	report. The sponsor shall review the report before final
911	submission to shall not be required to provide information and
912	data that is duplicative and already in the possession of the
913	department. The Department of Education shall include in its
914	compilation a notation if a school failed to file its report by
915	the deadline established by the department. The report shall
916	include at least the following components:
917	1.  Student achievement performance data, including the
918	information required for the annual school report and the
919	education accountability system governed by ss. 1008.31 and
920	1008.345. Charter schools are subject to the same accountability
921	requirements as other public schools, including reports of
922	student achievement information that links baseline student data
923	to the school's performance projections identified in the
924	charter. The charter school shall identify reasons for any
925	difference between projected and actual student performance.
926	2.  Financial status of the charter school which must
927	include revenues and expenditures at a level of detail that
928	allows for analysis of the school's ability to meet financial
929	obligations and timely repayment of debt.
930	3.  Documentation of the facilities in current use and any
931	planned facilities for use by the charter school for instruction
932	of students, administrative functions, or investment purposes.
933	4.  Descriptive information about the charter school's
934	personnel, including salary and benefit levels of charter school
935	employees, the proportion of instructional personnel who hold
936	professional or temporary certificates, and the proportion of
937	instructional personnel teaching in-field or out-of-field.
938	(l)(m)  A charter school shall not levy taxes or issue
939	bonds secured by tax revenues.
940	(m)(n)  A charter school shall provide instruction for at
941	least the number of days required by law for other public
942	schools, and may provide instruction for additional days.
943	(n)(o)  The director and a representative of the governing
944	body of a charter school that has received a school grade of "D"
945	under s. 1008.34(2) shall appear before the sponsor or the
946	sponsor's staff at least once a year to present information
947	concerning each contract component having noted deficiencies.
948	The sponsor shall communicate at the meeting, and in writing to
949	the director, the services provided to the school to help the
950	school address its deficiencies.
951	(o)(p)  Upon notification that a charter school receives a
952	school grade of "D" for 2 consecutive years or a school grade of
953	"F" under s. 1008.34(2), the charter school sponsor or the
954	sponsor's staff shall require the director and a representative
955	of the governing body to submit to the sponsor for approval a
956	school improvement plan to raise student achievement and to
957	implement the plan. The sponsor has the authority to approve a
958	school improvement plan that the charter school will implement
959	in the following school year. The sponsor may also consider the
960	State Board of Education's recommended action pursuant to s.
961	1008.33(1) as part of the school improvement plan. The
962	Department of Education shall offer technical assistance and
963	training to the charter school and its governing body and
964	establish guidelines for developing, submitting, and approving
965	such plans.
966	1.  If the charter school fails to improve its student
967	performance from the year immediately prior to the
968	implementation of the school improvement plan, the sponsor shall
969	place the charter school on probation and shall require the
970	charter school governing body to take one of the following
971	corrective actions:
972	a.  Contract for the educational services of the charter
973	school;
974	b.  Reorganize the school at the end of the school year
975	under a new director or principal who is authorized to hire new
976	staff and implement a plan that addresses the causes of
977	inadequate progress; or
978	c.  Reconstitute the charter school.
979	2.  A charter school that is placed on probation shall
980	continue the corrective actions required under subparagraph 1.
981	until the charter school improves its student performance from
982	the year prior to the implementation of the school improvement
983	plan.
984	3.  Notwithstanding any provision of this paragraph, the
985	sponsor may terminate the charter at any time pursuant to the
986	provisions of subsection (8).
987	(p)(q)  The director and a representative of the governing
988	body of a graded charter school that has submitted a school
989	improvement plan or has been placed on probation under paragraph
990	(o) (p) shall appear before the sponsor or the sponsor's staff
991	at least once a year to present information regarding the
992	corrective strategies that are being implemented by the school
993	pursuant to the school improvement plan. The sponsor shall
994	communicate at the meeting, and in writing to the director, the
995	services provided to the school to help the school address its
996	deficiencies.
997	(10)  ELIGIBLE STUDENTS.--
998	(a)  A charter school shall be open to any student covered
999	in an interdistrict agreement or residing in the school district
1000	in which the charter school is located; however, in the case of
1001	a charter lab school, the charter lab school shall be open to
1002	any student eligible to attend the lab school as provided in s.
1003	1002.32 or who resides in the school district in which the
1004	charter lab school is located. Any eligible student shall be
1005	allowed interdistrict transfer to attend a charter school when
1006	based on good cause. Good cause shall include, but not be
1007	limited to, geographic proximity to a charter school in a
1008	neighboring school district.
1009	(h)  The capacity of the charter school shall be determined
1010	annually by the governing board, in conjunction with the
1011	sponsor, of the charter school in consideration of the factors
1012	identified in this subsection. The calculation under s. 1003.03
1013	for class size compliance for charter schools shall be the
1014	average for the applicable grade grouping at the school level
1015	established at the October student membership survey of the
1016	district in which the charter school is operated.
1017	(17)  FUNDING.--Students enrolled in a charter school,
1018	regardless of the sponsorship, shall be funded as if they are in
1019	a basic program or a special program, the same as students
1020	enrolled in other public schools in the school district. Funding
1021	for a charter lab school shall be as provided in s. 1002.32.
1022	(b)  The basis for the agreement for funding students
1023	enrolled in a charter school shall be the sum of the school
1024	district's operating funds from the Florida Education Finance
1025	Program as provided in s. 1011.62 and the General Appropriations
1026	Act, including gross state and local funds, discretionary
1027	lottery funds, and funds from the school district's current
1028	operating discretionary millage levy; divided by total funded
1029	weighted full-time equivalent students in the school district;
1030	multiplied by the weighted full-time equivalent students for the
1031	charter school. Charter schools whose students or programs meet
1032	the eligibility criteria in law shall be entitled to their
1033	proportionate share of categorical program funds included in the
1034	total funds available in the Florida Education Finance Program
1035	by the Legislature, including transportation. Total funding for
1036	each charter school shall be recalculated during the year to
1037	reflect the revised calculations under the Florida Education
1038	Finance Program by the state and the actual weighted full-time
1039	equivalent students reported by the charter school during the
1040	full-time equivalent student survey periods designated by the
1041	Commissioner of Education. Florida Education Finance Program
1042	funds for a charter school must be distributed to the charter
1043	school by the district school board within 10 days after receipt
1044	from the state.
1045	(c)  If the sponsor district school board is providing
1046	programs or services to students funded by federal funds, any
1047	eligible students enrolled in charter schools in the school
1048	district shall be provided federal funds for the same level of
1049	service provided students in the schools operated by the
1050	district school board. Pursuant to provisions of 20 U.S.C. 8061
1051	s. 10306, all charter schools shall receive all federal funding
1052	for which the school is otherwise eligible, including Title I
1053	funding and funding under the Individuals with Disabilities
1054	Education Act, not later than 5 months after the charter school
1055	first opens and within 5 months after any subsequent expansion
1056	of enrollment.
1057	(18)  FACILITIES.--
1058	(e)  If a district school board facility or property is
1059	available because it is surplus, marked for disposal, or
1060	otherwise unused, it shall be provided for a charter school's
1061	use on the same basis as it is made available to other public
1062	schools in the district. If a school district closes a public
1063	school, the property and facilities must first be made available
1064	within 60 days, for lease or purchase, to charter schools within
1065	the district to be used for educational purposes. A charter
1066	school receiving property from the school district may not sell
1067	or dispose of such property without written permission of the
1068	school district. Similarly, for an existing public school
1069	converting to charter status, no rental or leasing fee for the
1070	existing facility or for the property normally inventoried to
1071	the conversion school may be charged by the district school
1072	board to the parents and teachers organizing the charter school.
1073	The charter school shall agree to reasonable maintenance
1074	provisions in order to maintain the facility in a manner similar
1075	to district school board standards. The Public Education Capital
1076	Outlay maintenance funds or any other maintenance funds
1077	generated by the facility operated as a conversion school shall
1078	remain with the conversion school.
1079	(20)  SERVICES.--
1080	(a)  A sponsor shall provide certain administrative and
1081	educational services to charter schools. These services shall
1082	include contract management services; full-time equivalent and
1083	data reporting services; exceptional student education
1084	administration services; services related to eligibility and
1085	reporting duties required to ensure that school lunch services
1086	under the federal lunch program, consistent with the needs of
1087	the charter school, are provided by the school district at the
1088	request of the charter school, that any funds due the charter
1089	school under the federal lunch program be paid to the charter
1090	school as soon as the charter school begins serving food under
1091	the federal lunch program, and that the charter school is paid
1092	at the same time and in the same manner under the federal lunch
1093	program as other public schools serviced by the sponsor or
1094	school district; test administration services, including payment
1095	of the costs of state-required or district-required student
1096	assessments; processing of teacher certificate data services;
1097	and information services, including equal access to student
1098	information systems that are used by public schools in the
1099	district in which the charter school is located. Student
1100	performance data for each student in a charter school,
1101	including, but not limited to, FCAT scores, standardized test
1102	scores, previous public school student report cards, and student
1103	performance measures, shall be provided by the sponsor to a
1104	charter school in the same manner provided to other public
1105	schools in the district. A total administrative fee for the
1106	provision of such services shall be calculated based upon up to
1107	5 percent of the available funds defined in paragraph (17)(b)
1108	for all students. However, a sponsor may only withhold up to a
1109	5-percent administrative fee for enrollment for up to and
1110	including 500 students. For charter schools with a population of
1111	501 or more students, the difference between the total
1112	administrative fee calculation and the amount of the
1113	administrative fee withheld may only be used for capital outlay
1114	purposes specified in s. 1013.62(2). Sponsors shall not charge
1115	charter schools any additional fees or surcharges for
1116	administrative and educational services in addition to the
1117	maximum 5-percent administrative fee withheld pursuant to this
1118	paragraph.
1119	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--
1120	(a)  The Department of Education shall provide information
1121	to the public, directly and through sponsors, both on how to
1122	form and operate a charter school and on how to enroll in
1123	charter schools once they are created. This information shall
1124	include a standard application format, charter format,
1125	evaluation instrument, and charter renewal format which shall
1126	include the information specified in subsection (7) and shall be
1127	developed by consulting and negotiating with both school
1128	districts, the Florida Schools of Excellence Commission, and
1129	charter schools before implementation. These formats shall be
1130	used as guidelines by charter school sponsors.
1131	(b)1.  The Department of Education shall report student
1132	assessment data pursuant to s. 1008.34(3)(b) which is reported
1133	to schools that receive a school grade pursuant to s. 1008.34 or
1134	student assessment data pursuant to s. 1008.341(3) which is
1135	reported to alternative schools that receive a school
1136	improvement rating pursuant to s. 1008.341 to each charter
1137	school that:
1138	a.  Does not receive a school grade pursuant to s. 1008.34
1139	or a school improvement rating pursuant to s. 1008.341; and
1140	b.  Serves at least 10 students who are tested on the
1141	statewide assessment test pursuant to s. 1008.22.
1142	2.  The charter school shall report the information in
1143	subparagraph 1. to each parent of a student at the charter
1144	school, the district in which the charter school is located, and
1145	the governing board of the charter school. This paragraph does
1146	not abrogate the provisions of s. 1002.22, relating to student
1147	records, and the requirements of 20 U.S.C. s. 1232g, the Family
1148	Educational Rights and Privacy Act.
1149	3.a.  Pursuant to this paragraph, the Department of
1150	Education shall compare the charter school student performance
1151	data for each charter school in subparagraph 1. with the student
1152	performance data in traditional public schools in the district
1153	in which the charter school is located and other charter schools
1154	in the state. For charter alternative schools, the department
1155	shall compare the student performance data described in this
1156	paragraph with all alternative schools in the state. The
1157	comparative data shall be provided by the following grade
1158	groupings:
1159	(I)  Grades 3 through 5.
1160	(II)  Grades 6 through 8.
1161	(III)  Grades 9 through 11.
1162	b.  Each charter school shall make the information in this
1163	paragraph available to the public.
1164	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
1165	of the annual report required by paragraph (9)(k) (9)(l), the
1166	Department of Education shall provide to the State Board of
1167	Education, the Commissioner of Education, the Governor, the
1168	President of the Senate, and the Speaker of the House of
1169	Representatives an analysis and comparison of the overall
1170	performance of charter school students, to include all students
1171	whose scores are counted as part of the statewide assessment
1172	program, versus comparable public school students in the
1173	district as determined by the statewide assessment program
1174	currently administered in the school district, and other
1175	assessments administered pursuant to s. 1008.22(3).
1176	(24)  RESTRICTION ON EMPLOYMENT OF RELATIVES.--
1177	(a)  This subsection applies to charter school personnel in
1178	a charter school operated by a private entity. Charter school
1179	personnel in schools operated by a municipality or other public
1180	entity are subject to s. 112.3135.
1181	(b)  As used in this subsection, the term:
1182	1.  "Charter school personnel" means a charter school
1183	owner, president, chair of the governing board of directors,
1184	superintendent, governing board member, principal, assistant
1185	principal, or any other person employed by the charter school
1186	having equivalent decisionmaking authority and in whom is vested
1187	the authority, or to whom the authority has been delegated, to
1188	appoint, employ, promote, or advance individuals or to recommend
1189	individuals for appointment, employment, promotion, or
1190	advancement in connection with employment in a charter school,
1191	including the authority as a member of a governing board of a
1192	charter school to vote on the appointment, employment,
1193	promotion, or advancement of individuals.
1194	2.  "Relative" means father, mother, son, daughter,
1195	brother, sister, husband, wife, father-in-law, mother-in-law,
1196	son-in-law, daughter-in-law, brother-in-law, sister-in-law,
1197	stepfather, stepmother, stepson, stepdaughter, stepbrother,
1198	stepsister, half brother, or half sister.
1199	3.  "Supervise" means the appointment, employment,
1200	promotion, or advancement of an individual or recommendation of
1201	the appointment, employment, promotion, or advancement of an
1202	individual.
1203	(c)  Charter school personnel may not supervise a relative
1204	in the charter school in which the personnel serve unless the
1205	governing board of the charter school unanimously waives this
1206	provision. Such waiver shall be annually reported by the
1207	governing board to the charter school's sponsor and shall be
1208	included in the report under paragraph (9)(k).
1209	(25)  STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--
1210	(a)  A member of a governing board of a charter school,
1211	including a charter school operated by a private entity, is
1212	subject to the provisions of ss. 112.313(2), (3), (7), (12), and
1213	(15) and 112.3143(3).
1214	(b)  A member of a governing board of a charter school
1215	operated by a municipality or other public entity is subject to
1216	the provisions of s. 112.3144, relating to the disclosure of
1217	financial interests.
1218	Section 8.  Subsection (5), paragraph (a) of subsection
1219	(7),  and paragraph (a) of subsection (11) of section 1002.335,
1220	Florida Statutes, are amended to read:
1221	1002.335  Florida Schools of Excellence Commission.--
1222	(5)  CHARTERING AUTHORITY.--
1223	(a)  A charter school applicant may submit an application
1224	to the commission only if the school district in which the FSE
1225	charter school is to be located has not retained exclusive
1226	authority to authorize charter schools as provided in paragraph
1227	(e). If a district school board has not retained exclusive
1228	authority to authorize charter schools as provided in paragraph
1229	(e), the district school board and the commission shall have
1230	concurrent authority to authorize charter schools and FSE
1231	charter schools, respectively, to be located within the
1232	geographic boundaries of the school district. The district
1233	school board shall monitor and oversee all charter schools
1234	authorized by the district school board pursuant to s. 1002.33.
1235	The commission shall monitor and oversee all FSE charter schools
1236	sponsored by the commission pursuant to subsection (4).
1237	(b)  Paragraph (e) may not be construed to eliminate the
1238	ability of a district school board to authorize charter schools
1239	pursuant to s. 1002.33. A district school board shall retain the
1240	authority to reauthorize and to oversee any charter school that
1241	it has authorized, except with respect to any charter school
1242	that is converted to an FSE charter school under this section.
1243	(c)  For fiscal year 2008-2009 and every 4 fiscal years
1244	thereafter 2007-2008 and for each fiscal year thereafter, a
1245	district school board may seek to retain exclusive authority to
1246	authorize charter schools within the geographic boundaries of
1247	the school district by presenting to the State Board of
1248	Education, on or before March 1 of the fiscal year prior to that
1249	for which the exclusive authority is to apply, a written
1250	resolution adopted by the district school board indicating the
1251	intent to seek retain exclusive authority to authorize charter
1252	schools. A district school board may seek to retain the
1253	exclusive authority to authorize charter schools by presenting
1254	to the state board the written resolution on or before a date 60
1255	days after establishment of the commission. The written
1256	resolution shall be accompanied by a written description
1257	addressing the elements described in paragraph (e). The district
1258	school board shall provide a complete copy of the resolution,
1259	including the description, to each charter school authorized by
1260	the district school board on or before the date it submits the
1261	resolution to the state board.
1262	(d)  A party may challenge the grant of exclusive authority
1263	made by the State Board of Education pursuant to paragraph (e)
1264	by filing with the state board a notice of challenge within 30
1265	days after the state board grants exclusive authority. The
1266	notice shall be accompanied by a specific written description of
1267	the basis for the challenge. The challenging party, at the time
1268	of filing notice with the state board, shall provide a copy of
1269	the notice of challenge to the district school board that has
1270	been granted exclusive authority. The state board shall permit
1271	the district school board the opportunity to appear and respond
1272	in writing to the challenge. The state board shall make a
1273	determination upon the challenge within 60 days after receiving
1274	the notice of challenge.
1275	(e)  The State Board of Education shall grant to a district
1276	school board exclusive authority to authorize charter schools
1277	within the geographic boundaries of the school district if the
1278	state board determines, after adequate notice, in a public
1279	hearing, and after receiving input from any charter school
1280	authorized by the district school board, that the district
1281	school board has provided fair and equitable treatment to its
1282	charter schools during the 4 years prior to the district school
1283	board's submission of the resolution described in paragraph (c).
1284	The state board's review of the resolution shall, at a minimum,
1285	include consideration of the following:
1286	1.  Compliance with the provisions of s. 1002.33.
1287	2.  Compliance with full and accurate accounting practices
1288	and charges for central administrative overhead costs.
1289	3.  Compliance with requirements allowing a charter school,
1290	at its discretion, to purchase certain services or a combination
1291	of services at actual cost to the district.
1292	4.  The absence of a district school board moratorium
1293	regarding charter schools or the absence of any districtwide
1294	charter school enrollment limits.
1295	5.  Compliance with valid orders of the state board.
1296	6.  The provision of assistance to charter schools to meet
1297	their facilities needs by including those needs in local bond
1298	issues or otherwise providing available land and facilities that
1299	are comparable to those provided to other public school students
1300	in the same grade levels within the school district.
1301	7.  The distribution to charter schools authorized by the
1302	district school board of a pro rata share of federal and state
1303	grants received by the district school board, except for any
1304	grant received for a particular purpose which, by its express
1305	terms, is intended to benefit a student population not able to
1306	be served by, or a program not able to be offered at, a charter
1307	school that did not receive a proportionate share of such grant
1308	proceeds.
1309	8.  The provision of adequate staff and other resources to
1310	serve charter schools authorized by the district school board,
1311	which services are provided by the district school board at a
1312	cost to the charter schools that does not exceed their actual
1313	cost to the district school board.
1314	9.  The lack of a policy or practice of imposing individual
1315	charter school enrollment limits, except as otherwise provided
1316	by law.
1317	10.  The provision of an adequate number of educational
1318	choice programs to serve students exercising their rights to
1319	transfer pursuant to the "No Child Left Behind Act of 2001,"
1320	Pub. L. No. 107-110, and a history of charter school approval
1321	that encourages chartering.
1322	(f)  The decision of the State Board of Education to grant
1323	or deny exclusive authority to a district school board pursuant
1324	to paragraph (e) shall be effective for 4 fiscal years, shall
1325	not be subject to the provisions of chapter 120, and shall be a
1326	final action subject to judicial review by the district court of
1327	appeal.
1328	(g)  For district school boards that have no discernible
1329	history of authorizing charter schools, the State Board of
1330	Education may not grant exclusive authority unless the district
1331	school board demonstrates that no approvable application has
1332	come before the district school board.
1333	(h)  A grant of exclusive authority by the State Board of
1334	Education shall continue so long as a district school board
1335	continues to comply with this section and has presented a
1336	written resolution to the state board as set forth in paragraph
1337	(c).
1338	(h)(i)  Notwithstanding any other provision of this section
1339	to the contrary, a district school board may permit the
1340	establishment of one or more FSE charter schools within the
1341	geographic boundaries of the school district by adopting a
1342	favorable resolution and submitting the resolution to the State
1343	Board of Education. The resolution shall be effective until it
1344	is rescinded by resolution of the district school board.
1345	(7)  COSPONSOR AGREEMENT.--
1346	(a)  Upon approval of a cosponsor, the commission and the
1347	cosponsor shall enter into an agreement that defines the
1348	cosponsor's rights and obligations and includes the following:
1349	1.  An explanation of the personnel, contractual and
1350	interagency relationships, and potential revenue sources
1351	referenced in the application as required in paragraph (6)(c).
1352	2.  Incorporation of the requirements of equal access for
1353	all students, including any plans to provide food service or
1354	transportation reasonably necessary to provide access to as many
1355	students as possible.
1356	3.  Incorporation of the requirement to serve low-income,
1357	low-performing, gifted, or underserved student populations.
1358	4.  An explanation of the academic and financial goals and
1359	expected outcomes for the cosponsor's charter schools and the
1360	method and plans by which they will be measured and achieved as
1361	referenced in the application.
1362	5.  The conflict-of-interest policies referenced in the
1363	application.
1364	6.  An explanation of the disposition of facilities and
1365	assets upon termination and dissolution of a charter school
1366	approved by the cosponsor.
1367	7.a.  A provision requiring the cosponsor to annually
1368	appear before the commission and provide a report as to the
1369	information provided pursuant to s. 1002.33(9)(k)(l) for each of
1370	its charter schools.
1371	b.  A provision requiring the cosponsor to perform the
1372	duties provided for in s. 1002.345.
1373	c.  A provision requiring the governing board to perform
1374	the duties provided for in s. 1002.345, including monitoring the
1375	corrective action plan.
1376	8.  A provision requiring that the cosponsor report the
1377	student enrollment in each of its sponsored charter schools to
1378	the district school board of the county in which the school is
1379	located.
1380	9.  A provision requiring that the cosponsor work with the
1381	commission to provide the necessary reports to the State Board
1382	of Education.
1383	10.  Any other reasonable terms deemed appropriate by the
1384	commission given the unique characteristics of the cosponsor.
1385	(11)  APPLICATION OF CHARTER SCHOOL STATUTE.--
1386	(a)  The provisions of s. 1002.33(7)-(12), (14), and (16)-
1387	(19), (21)(b), (24), and (25) shall apply to the commission and
1388	the cosponsors and charter schools approved pursuant to this
1389	section.
1390	Section 9.  Subsections (4) and (5), paragraphs (d) and (f)
1391	of subsection (6), subsection (8), paragraph (c) of subsection
1392	(10), and subsection (13) of section 1002.34, Florida Statutes,
1393	are amended to read:
1394	1002.34  Charter technical career centers.--
1395	(4)  CHARTER.--A sponsor may designate centers as provided
1396	in this section. An application to establish a center may be
1397	submitted by a sponsor or another organization that is
1398	determined, by rule of the State Board of Education, to be
1399	appropriate. However, an independent school is not eligible for
1400	status as a center. The charter must be signed by the governing
1401	body of the center and the sponsor, and must be approved by the
1402	district school board and community college board of trustees in
1403	whose geographic region the facility is located. If a charter
1404	technical career center is established by the conversion to
1405	charter status of a public technical center formerly governed by
1406	a district school board, the charter status of that center takes
1407	precedence in any question of governance. The governance of the
1408	center or of any program within the center remains with its
1409	board of directors unless the board agrees to a change in
1410	governance or its charter is revoked as provided in subsection
1411	(15). Such a conversion charter technical career center is not
1412	affected by a change in the governance of public technical
1413	centers or of programs within other centers that are or have
1414	been governed by district school boards. A charter technical
1415	career center, or any program within such a center, that was
1416	governed by a district school board and transferred to a
1417	community college prior to the effective date of this act is not
1418	affected by this provision. An applicant who wishes to establish
1419	a center must submit to the district school board or community
1420	college board of trustees, or a consortium of one or more of
1421	each, an application on a form developed by the Department of
1422	Education that includes:
1423	(a)  The name of the proposed center.
1424	(b)  The proposed structure of the center, including a list
1425	of proposed members of the board of directors or a description
1426	of the qualifications for and method of their appointment or
1427	election.
1428	(c)  The workforce development goals of the center, the
1429	curriculum to be offered, and the outcomes and the methods of
1430	assessing the extent to which the outcomes are met.
1431	(d)  The admissions policy and criteria for evaluating the
1432	admission of students.
1433	(e)  A description of the staff responsibilities and the
1434	proposed qualifications of the teaching staff.
1435	(f)  A description of the procedures to be implemented to
1436	ensure significant involvement of representatives of business
1437	and industry in the operation of the center.
1438	(g)  A method for determining whether a student has
1439	satisfied the requirements for graduation specified in s.
1440	1003.43 and for completion of a postsecondary certificate or
1441	degree.
1442	(h)  A method for granting secondary and postsecondary
1443	diplomas, certificates, and degrees.
1444	(i)  A description of and address for the physical facility
1445	in which the center will be located.
1446	(j)  A method of resolving conflicts between the governing
1447	body of the center and the sponsor and between consortium
1448	members, if applicable.
1449	(k)  A method for reporting student data as required by law
1450	and rule.
1451	(l)  The identity of all relatives employed by the charter
1452	technical career center who are related to the center owner,
1453	president, chair of the governing board of directors,
1454	superintendent, governing board member, principal, assistant
1455	principal, or any other person employed by the center who has
1456	equivalent decisionmaking authority. As used in this paragraph,
1457	the term "relative" means father, mother, son, daughter,
1458	brother, sister, husband, wife, father-in-law, mother-in-law,
1459	son-in-law, daughter-in-law, brother-in-law, sister-in-law,
1460	stepfather, stepmother, stepson, stepdaughter, stepbrother,
1461	stepsister, half brother, or half sister.
1462	(m)(l)  Other information required by the district school
1463	board or community college board of trustees.
1464
1465	Students at a center must meet the same testing and academic
1466	performance standards as those established by law and rule for
1467	students at public schools and public technical centers. The
1468	students must also meet any additional assessment indicators
1469	that are included within the charter approved by the district
1470	school board or community college board of trustees.
1471	(5)  APPLICATION.--An application to establish a center
1472	must be submitted by February 1 of the year preceding the school
1473	year in which the center will begin operation. The sponsor must
1474	review the application using an evaluation instrument developed
1475	by the Department of Education and make a final decision on
1476	whether to approve the application and grant the charter by
1477	March 1, and may condition the granting of a charter on the
1478	center's taking certain actions or maintaining certain
1479	conditions. Such actions and conditions must be provided to the
1480	applicant in writing. The district school board or community
1481	college board of trustees is not required to issue a charter to
1482	any person.
1483	(6)  SPONSOR.--A district school board or community college
1484	board of trustees or a consortium of one or more of each may
1485	sponsor a center in the county in which the board has
1486	jurisdiction.
1487	(d)  The Department of Education shall offer or arrange for
1488	training and technical assistance to applicants in developing
1489	business plans and estimating costs and income. This assistance
1490	shall address estimating startup costs, projecting enrollment,
1491	and identifying the types and amounts of state and federal
1492	financial assistance the center will be eligible to receive. The
1493	training shall include instruction in accurate financial
1494	planning and good business practices may provide technical
1495	assistance to an applicant upon written request.
1496	(f)  The sponsor shall monitor and review the center's
1497	progress toward charter goals and shall monitor the center's
1498	revenues and expenditures. The sponsor shall perform the duties
1499	provided for in s. 1002.345.
1500	(8)  ELIGIBLE STUDENTS.--
1501	(a)  A center must be open to all students as space is
1502	available and may not discriminate in admissions policies or
1503	practices on the basis of an individual's physical disability or
1504	proficiency in English or on any other basis that would be
1505	unlawful if practiced by a public school or a community college.
1506	A center may establish reasonable criteria by which to evaluate
1507	prospective students, which criteria must be outlined in the
1508	charter.
1509	(b)  The calculation under s. 1003.03 for class size
1510	compliance for a center shall be the average for the applicable
1511	grade grouping at the school level established at the October
1512	student membership survey of the district in which the center is
1513	operated.
1514	(10)  EXEMPTION FROM STATUTES.--
1515	(c)  A center must comply with the antidiscrimination
1516	provisions of s. 1000.05 and the provisions of s. 1002.33(24)
1517	relating to the employment of relatives.
1518	(13)  BOARD OF DIRECTORS AUTHORITY.--The board of directors
1519	of a center may decide matters relating to the operation of the
1520	school, including budgeting, curriculum, and operating
1521	procedures, subject to the center's charter. The board of
1522	directors is responsible for performing the duties provided for
1523	in s. 1002.345, including monitoring the corrective action plan.
1524	The board of directors must comply with the provisions of s.
1525	1002.33(24) and (25).
1526	Section 10.  Section 1002.345, Florida Statutes, is created
1527	to read:
1528	1002.345  Determination of material financial weaknesses
1529	and financial emergencies for charter schools and charter
1530	technical career centers.--This section applies to charter
1531	schools operating pursuant to ss. 1002.33 and 1002.335 and to
1532	charter technical career centers operating pursuant to s.
1533	1002.34.
1534	(1)  MATERIAL FINANCIAL WEAKNESS; REQUIREMENTS.--
1535	(a)  A charter school and a charter technical career center
1536	shall be subject to an expedited review by the sponsor when any
1537	one of the following conditions occurs:
1538	1.  An end-of-year financial deficit greater than the
1539	school's combined cash and accounts receivable balances.
1540	2.  A substantial decline in student enrollment without a
1541	commensurate percentage reduction in expenses. A substantial
1542	decline is a decline of greater than 25 percent.
1543	3.  An outstanding debt in excess of the land, property,
1544	and equipment balances.
1545	4.  Failure to meet financial reporting requirements
1546	pursuant to s. 1002.33(9), s. 1002.335(7)(a)7., or s.
1547	1002.34(14).
1548	5.  Inadequate financial controls or other adverse
1549	financial conditions not corrected in 120 days as identified
1550	through an annual audit conducted pursuant to s. 218.39.
1551	6.  Negative financial findings cited in reports by the
1552	Auditor General or the Office of Program Policy Analysis and
1553	Government Accountability.
1554	(b)  A sponsor shall notify the governing board within 7
1555	working days when one or more of the conditions specified in
1556	paragraph (a) occur.
1557	(c)  The governing board and the sponsor shall develop a
1558	corrective action plan and file the plan with the Commissioner
1559	of Education and the Florida Schools of Excellence Commission
1560	within 30 working days. If the governing board and the sponsor
1561	are unable to agree on a corrective action plan, the State Board
1562	of Education shall determine the components of the plan. The
1563	governing board shall implement the plan.
1564	(d)  The governing board shall include the corrective
1565	action plan and the status of its implementation in the annual
1566	progress report to the sponsor that is required under s.
1567	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1568	(e)  If the governing board fails to implement the
1569	corrective action plan within 1 year, the State Board of
1570	Education shall prescribe any steps necessary for the charter
1571	school or the charter technical career center to comply with
1572	state requirements.
1573	(f)  The chair of the governing board shall annually appear
1574	before the State Board of Education and report on the
1575	implementation of the State Board of Education's requirements.
1576	(2)  FINANCIAL EMERGENCY; DEFICIT FUND BALANCE; DEFICIT NET
1577	ASSETS; REQUIREMENTS.--
1578	(a)  A charter school and a charter technical career center
1579	shall provide for a certified public accountant or auditor to
1580	conduct an annual financial audit in accordance with s. 218.39.
1581	(b)  The charter shall ensure that, if an annual financial
1582	audit of a charter school or charter technical career center
1583	reveals that one or more of the conditions in s. 218.503(1) have
1584	occurred or will occur if action is not taken or if a charter
1585	school or charter technical career center has a deficit fund
1586	balance or deficit net assets, the auditor must notify the
1587	governing board of the charter school or charter technical
1588	career center, as appropriate, the sponsor, and the Commissioner
1589	of Education.
1590	(c)  When a financial audit conducted by a certified public
1591	accountant in accordance with s. 218.39 reveals that one or more
1592	of the conditions in s. 218.503(1) have occurred or will occur
1593	if action is not taken or when a deficit fund balance or deficit
1594	net assets exist, the auditor shall notify and provide the
1595	financial audit to the governing board of the charter school or
1596	charter technical career center, as appropriate, the sponsor,
1597	and the Commissioner of Education within 7 working days after
1598	the finding is made.
1599	(3)  REPORT.--The Commissioner of Education shall annually
1600	report to the State Board of Education each charter school and
1601	charter technical career center that is subject to a financial
1602	recovery plan or a corrective action plan under this section.
1603	(4)  RULES.--The State Board of Education shall adopt rules
1604	for developing financial recovery and corrective action plans.
1605	(5)  TECHNICAL ASSISTANCE.--The Department of Education
1606	shall provide technical assistance to charter schools, charter
1607	technical career centers, governing boards, and sponsors in
1608	developing financial recovery and corrective action plans.
1609	(6)  FAILURE TO CORRECT DEFICIENCIES.--The sponsor may
1610	choose not to renew or may terminate a charter if the charter
1611	school or charter technical career center fails to correct the
1612	deficiencies noted in the corrective action plan within 1 year
1613	or exhibits one or more financial emergency conditions as
1614	provided in s. 218.503 for 2 consecutive years.
1615	Section 11.  Subsection (2) of section 1011.71, Florida
1616	Statutes, is amended to read:
1617	1011.71  District school tax.--
1618	(2)  In addition to the maximum millage levy as provided in
1619	subsection (1), each school board may levy not more than 2 mills
1620	against the taxable value for school purposes for district
1621	schools, including charter schools. Each school board shall
1622	determine an equitable amount of revenue generated under this
1623	subsection which shall be shared with the charter schools
1624	located within its district. Revenue under this subsection may
1625	be used at the discretion of the school board, to fund:
1626	(a)  New construction and remodeling projects, as set forth
1627	in s. 1013.64(3)(b) and (6)(b) and included in the district's
1628	educational plant survey pursuant to s. 1013.31, without regard
1629	to prioritization, sites and site improvement or expansion to
1630	new sites, existing sites, auxiliary facilities, athletic
1631	facilities, or ancillary facilities.
1632	(b)  Maintenance, renovation, and repair of existing school
1633	plants or of leased facilities to correct deficiencies pursuant
1634	to s. 1013.15(2).
1635	(c)  The purchase, lease-purchase, or lease of school
1636	buses.
1637	(d)  The purchase, lease-purchase, or lease of new and
1638	replacement equipment.
1639	(e)  Payments for educational facilities and sites due
1640	under a lease-purchase agreement entered into by a district
1641	school board pursuant to s. 1003.02(1)(f) or s. 1013.15(2), not
1642	exceeding, in the aggregate, an amount equal to three-fourths of
1643	the proceeds from the millage levied by a district school board
1644	pursuant to this subsection.
1645	(f)  Payment of loans approved pursuant to ss. 1011.14 and
1646	1011.15.
1647	(g)  Payment of costs directly related to complying with
1648	state and federal environmental statutes, rules, and regulations
1649	governing school facilities.
1650	(h)  Payment of costs of leasing relocatable educational
1651	facilities, of renting or leasing educational facilities and
1652	sites pursuant to s. 1013.15(2), or of renting or leasing
1653	buildings or space within existing buildings pursuant to s.
1654	1013.15(4).
1655	(i)  Payment of the cost of school buses when a school
1656	district contracts with a private entity to provide student
1657	transportation services if the district meets the requirements
1658	of this paragraph.
1659	1.  The district's contract must require that the private
1660	entity purchase, lease-purchase, or lease, and operate and
1661	maintain, one or more school buses of a specific type and size
1662	that meet the requirements of s. 1006.25.
1663	2.  Each such school bus must be used for the daily
1664	transportation of public school students in the manner required
1665	by the school district.
1666	3.  Annual payment for each such school bus may not exceed
1667	10 percent of the purchase price of the state pool bid.
1668	4.  The proposed expenditure of the funds for this purpose
1669	must have been included in the district school board's notice of
1670	proposed tax for school capital outlay as provided in s.
1671	200.065(10).
1672	(j)  Payment of the cost of the opening day collection for
1673	the library media center of a new school.
1674	Section 12.  Paragraph (f) is added to subsection (2) of
1675	section 1013.62, Florida Statutes, to read:
1676	1013.62  Charter schools capital outlay funding.--
1677	(2)  A charter school's governing body may use charter
1678	school capital outlay funds for the following purposes:
1679	(f)  Any of the purposes set forth in s. 1011.71(2).
1680
1681	Conversion charter schools may use capital outlay funds received
1682	through the reduction in the administrative fee provided in s.
1683	1002.33(20) for renovation, repair, and maintenance of school
1684	facilities that are owned by the sponsor.
1685	Section 13.  Subsection (1) of section 1013.735, Florida
1686	Statutes, is amended to read:
1687	1013.735  Classrooms for Kids Program.--
1688	(1)  ALLOCATION.--The department shall allocate funds
1689	appropriated for the Classrooms for Kids Program. It is the
1690	intent of the Legislature that this program be administered as
1691	nearly as practicable in the same manner as the capital outlay
1692	program authorized under s. 9(a), Art. XII of the State
1693	Constitution. Each district school board's share of the annual
1694	appropriation for the Classrooms for Kids Program must be
1695	calculated according to the following formula:
1696	(a)  Twenty-five percent of the appropriation shall be
1697	prorated to the districts based on each district's percentage of
1698	K-12 base capital outlay full-time equivalent membership,
1699	including charter school full-time equivalent membership. Each
1700	district shall provide each charter school within the district
1701	with its proportionate share of funds under this paragraph.
1702	(b)  Sixty-five and 65 percent of the appropriation shall
1703	be based on each district's percentage of K-12 growth capital
1704	outlay full-time equivalent membership as specified for the
1705	allocation of funds from the Public Education Capital Outlay and
1706	Debt Service Trust Fund by s. 1013.64(3).
1707	(c)(b)  Ten percent of the appropriation must be allocated
1708	among district school boards according to the allocation formula
1709	in s. 1013.64(1)(a), excluding adult vocational technical
1710	facilities.
1711	Section 14.  This act shall take effect July 1, 2008.

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