HB 1301

1	A bill to be entitled
2	An act relating to charter schools; amending s. 11.45,
3	F.S.; revising Auditor General reporting requirements
4	relating to determination of financial emergency to
5	include reporting of charter technical career centers;
6	amending ss. 218.50, 218.501, 218.503, and 218.504, F.S.;
7	providing that charter technical career centers are
8	subject to certain requirements in the event of a
9	financial emergency; requiring that the sponsor be
10	notified of certain conditions; providing for the
11	development of a financial recovery plan, which may be
12	approved by the Commissioner of Education; amending s.
13	1002.33, F.S.; providing for duties of charter school
14	sponsors and governing boards when charter schools
15	experience a financial weakness or a financial emergency;
16	specifying forms to be used by charter school applicants;
17	requiring applicant training and documentation; deleting
18	the auditing requirements and financial emergency
19	provisions for charter schools; requiring charter schools
20	to disclose the identity of relatives of charter school
21	personnel; providing for a limitation on funding;
22	providing for the disclosure of the performance of charter
23	schools that are not given a school grade or school
24	improvement rating; providing reporting requirements;
25	providing restrictions for the employment of relatives by
26	charter school personnel; providing that members of a
27	charter school governing board are subject to certain
28	standards of conduct and financial disclosure; amending s.
29	1002.335, F.S.; eliminating the requirement for district
30	school boards to annually seek continued exclusivity from
31	the State Board of Education; providing for challenges to
32	the exclusivity of district school boards; providing a
33	rebuttable presumption for district school boards that are
34	granted exclusivity; specifying additional components of
35	cosponsor agreements; amending s. 1002.34, F.S.; providing
36	additional duties for charter technical career centers,
37	applicants, sponsors, and governing boards; requiring the
38	Department of Education to offer or arrange training and
39	assistance to applicants for a charter technical career
40	center; requiring that an applicant participate in the
41	training; creating s. 1002.345, F.S.; establishing
42	criteria and requirements for charter schools and charter
43	technical career centers that have financial weaknesses or
44	are in a state of financial emergency; establishing
45	requirements for charter schools, charter technical career
46	centers, governing bodies, and sponsors; requiring
47	financial audits of charter schools and charter technical
48	career centers; providing for corrective action and
49	financial recovery plans; providing for duties of
50	auditors, the Commissioner of Education, and the
51	Department of Education; requiring the State Board of
52	Education to adopt rules; providing grounds for
53	termination or nonrenewal of a charter; providing an
54	effective date.
55
56	Be It Enacted by the Legislature of the State of Florida:
57
58	Section 1.  Paragraph (e) of subsection (7) and subsection
59	(8) of section 11.45, Florida Statutes, are amended to read:
60	11.45  Definitions; duties; authorities; reports; rules.--
61	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
62	(e)  The Auditor General shall notify the Governor or the
63	Commissioner of Education, as appropriate, and the Legislative
64	Auditing Committee of any audit report reviewed by the Auditor
65	General pursuant to paragraph (b) which contains a statement
66	that a local governmental entity, charter school, charter
67	technical career center, or district school board has met one or
68	more of the conditions specified in s. 218.503. If the Auditor
69	General requests a clarification regarding information included
70	in an audit report to determine whether a local governmental
71	entity, charter school, charter technical career center, or
72	district school board has met one or more of the conditions
73	specified in s. 218.503, the requested clarification must be
74	provided within 45 days after the date of the request. If the
75	local governmental entity, charter school, charter technical
76	career center, or district school board does not comply with the
77	Auditor General's request, the Auditor General shall notify the
78	Legislative Auditing Committee. If, after obtaining the
79	requested clarification, the Auditor General determines that the
80	local governmental entity, charter school, charter technical
81	career center, or district school board has met one or more of
82	the conditions specified in s. 218.503, he or she shall notify
83	the Governor or the Commissioner of Education, as appropriate,
84	and the Legislative Auditing Committee.
85	(8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
86	consultation with the Board of Accountancy, shall adopt rules
87	for the form and conduct of all financial audits performed by
88	independent certified public accountants pursuant to ss.
89	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
90	audits of local governmental entities, charter schools, charter
91	technical career centers, and district school boards must
92	include, but are not limited to, requirements for the reporting
93	of information necessary to carry out the purposes of the Local
94	Governmental Entity, Charter School, Charter Technical Career
95	Center, and District School Board Financial Emergencies Act as
96	stated in s. 218.501.
97	Section 2.  Section 218.50, Florida Statutes, is amended to
98	read:
99	218.50  Short title.--Sections 218.50-218.504 may be cited
100	as the "Local Governmental Entity, Charter School, Charter
101	Technical Career Center, and District School Board Financial
102	Emergencies Act."
103	Section 3.  Section 218.501, Florida Statutes, is amended
104	to read:
105	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
106	(1)  To promote the fiscal responsibility of local
107	governmental entities, charter schools, charter technical career
108	centers, and district school boards.
109	(2)  To assist local governmental entities, charter
110	schools, charter technical career centers, and district school
111	boards in providing essential services without interruption and
112	in meeting their financial obligations.
113	(3)  To assist local governmental entities, charter
114	schools, charter technical career centers, and district school
115	boards through the improvement of local financial management
116	procedures.
117	Section 4.  Subsections (1), (2), and (4) of section
118	218.503, Florida Statutes, are amended to read:
119	218.503  Determination of financial emergency.--
120	(1)  Local governmental entities, charter schools, charter
121	technical career centers, and district school boards shall be
122	subject to review and oversight by the Governor, charter school
123	sponsor, charter technical career center sponsor, or the
124	Commissioner of Education, as appropriate, when any one of the
125	following conditions occurs:
126	(a)  Failure within the same fiscal year in which due to
127	pay short-term loans or failure to make bond debt service or
128	other long-term debt payments when due, as a result of a lack of
129	funds.
130	(b)  Failure to pay uncontested claims from creditors
131	within 90 days after the claim is presented, as a result of a
132	lack of funds.
133	(c)  Failure to transfer at the appropriate time, due to
134	lack of funds:
135	1.  Taxes withheld on the income of employees; or
136	2.  Employer and employee contributions for:
137	a.  Federal social security; or
138	b.  Any pension, retirement, or benefit plan of an
139	employee.
140	(d)  Failure for one pay period to pay, due to lack of
141	funds:
142	1.  Wages and salaries owed to employees; or
143	2.  Retirement benefits owed to former employees.
144	(e)  An unreserved or total fund balance or retained
145	earnings deficit, or unrestricted or total net assets deficit,
146	as reported on the balance sheet or statement of net assets on
147	the general purpose or fund financial statements, for which
148	sufficient resources of the local governmental entity, as
149	reported on the balance sheet or statement of net assets on the
150	general purpose or fund financial statements, are not available
151	to cover the deficit. Resources available to cover reported
152	deficits include net assets that are not otherwise restricted by
153	federal, state, or local laws, bond covenants, contractual
154	agreements, or other legal constraints. Fixed or capital assets,
155	the disposal of which would impair the ability of a local
156	governmental entity to carry out its functions, are not
157	considered resources available to cover reported deficits.
158	(2)  A local governmental entity shall notify the Governor
159	and the Legislative Auditing Committee, a charter school shall
160	notify the charter school sponsor and the Legislative Auditing
161	Committee, a charter technical career center shall notify the
162	charter technical career center sponsor and the Legislative
163	Auditing Committee, and a district school board shall notify the
164	Commissioner of Education and the Legislative Auditing
165	Committee, when one or more of the conditions specified in
166	subsection (1) have occurred or will occur if action is not
167	taken to assist the local governmental entity, charter school,
168	charter technical career center, or district school board. In
169	addition, any state agency must, within 30 days after a
170	determination that one or more of the conditions specified in
171	subsection (1) have occurred or will occur if action is not
172	taken to assist the local governmental entity, charter school,
173	charter technical career center, or district school board,
174	notify the Governor, charter school sponsor, charter technical
175	career center sponsor, or the Commissioner of Education, as
176	appropriate, and the Legislative Auditing Committee.
177	(4)(a)  Upon notification that one or more of the
178	conditions in subsection (1) exist, the charter school sponsor
179	or the sponsor's designee and the Commissioner of Education
180	shall contact the charter school governing body to determine
181	what actions have been taken by the charter school governing
182	body to resolve the condition. The Commissioner of Education
183	charter school sponsor has the authority to require and approve
184	a financial recovery plan, to be prepared by the charter school
185	governing body, prescribing actions that will cause the charter
186	school to no longer be subject to this section. The Department
187	of Education shall establish guidelines for developing such
188	plans.
189	(b)  Upon notification that one or more of the conditions
190	in subsection (1) exist, the charter technical career center
191	sponsor or the sponsor's designee and the Commissioner of
192	Education shall contact the charter technical career center
193	governing body to determine what actions have been taken by the
194	charter technical career center governing body to resolve the
195	condition. The Commissioner of Education may require and approve
196	a financial recovery plan, to be prepared by the charter
197	technical career center governing body, prescribing actions that
198	will cause the charter technical career center to no longer be
199	subject to this section.
200	(c)  The Commissioner of Education shall determine if the
201	charter school or charter technical career center needs a
202	financial recovery plan to resolve the condition. If the
203	Commissioner of Education determines that a financial recovery
204	plan is needed, the charter school or charter technical career
205	center is considered to be in a state of financial emergency.
206
207	The Department of Education, with the involvement of sponsors,
208	charter schools, and charter technical career centers, shall
209	establish guidelines for developing such plans.
210	Section 5.  Section 218.504, Florida Statutes, is amended
211	to read:
212	218.504  Cessation of state action.--The Governor or the
213	Commissioner of Education, as appropriate, has the authority to
214	terminate all state actions pursuant to ss. 218.50-218.504.
215	Cessation of state action must not occur until the Governor or
216	the Commissioner of Education, as appropriate, has determined
217	that:
218	(1)  The local governmental entity, charter school, charter
219	technical career center, or district school board:
220	(a)  Has established and is operating an effective
221	financial accounting and reporting system.
222	(b)  Has resolved the conditions outlined in s. 218.503(1).
223	(2)  None of the conditions outlined in s. 218.503(1)
224	exists.
225	Section 6.  Paragraph (b) of subsection (5), paragraphs
226	(a), (b), and (g) of subsection (6), paragraph (a) of subsection
227	(7), paragraphs (g) through (q) of subsection (9), and
228	subsections (17), (21), and (23) of section 1002.33, Florida
229	Statutes, are amended, subsection (24) of that section is
230	renumbered as subsection (26), and new subsections (24) and (25)
231	are added to that section, to read:
232	1002.33  Charter schools.--
233	(5)  SPONSOR; DUTIES.--
234	(b)  Sponsor duties.--
235	1.a.  The sponsor shall monitor and review the charter
236	school in its progress toward the goals established in the
237	charter.
238	b.  The sponsor shall monitor the revenues and expenditures
239	of the charter school and perform the duties provided for in s.
240	1002.345.
241	c.  The sponsor may approve a charter for a charter school
242	before the applicant has secured space, equipment, or personnel,
243	if the applicant indicates approval is necessary for it to raise
244	working funds.
245	d.  The sponsor's policies shall not apply to a charter
246	school unless mutually agreed to by both the sponsor and the
247	charter school.
248	e.  The sponsor shall ensure that the charter is innovative
249	and consistent with the state education goals established by s.
250	1000.03(5).
251	f.  The sponsor shall ensure that the charter school
252	participates in the state's education accountability system. If
253	a charter school falls short of performance measures included in
254	the approved charter, the sponsor shall report such shortcomings
255	to the Department of Education.
256	g.  The sponsor shall not be liable for civil damages under
257	state law for personal injury, property damage, or death
258	resulting from an act or omission of an officer, employee,
259	agent, or governing body of the charter school.
260	h.  The sponsor shall not be liable for civil damages under
261	state law for any employment actions taken by an officer,
262	employee, agent, or governing body of the charter school.
263	i.  The sponsor's duties to monitor the charter school
264	shall not constitute the basis for a private cause of action.
265	j.  The sponsor shall not impose additional reporting
266	requirements on a charter school without providing reasonable
267	and specific justification in writing to the charter school.
268	2.  Immunity for the sponsor of a charter school under
269	subparagraph 1. applies only with respect to acts or omissions
270	not under the sponsor's direct authority as described in this
271	section.
272	3.  Nothing contained in this paragraph shall be considered
273	a waiver of sovereign immunity by a district school board.
274	4.  A community college may work with the school district
275	or school districts in its designated service area to develop
276	charter schools that offer secondary education. These charter
277	schools must include an option for students to receive an
278	associate degree upon high school graduation. District school
279	boards shall cooperate with and assist the community college on
280	the charter application. Community college applications for
281	charter schools are not subject to the time deadlines outlined
282	in subsection (6) and may be approved by the district school
283	board at any time during the year. Community colleges shall not
284	report FTE for any students who receive FTE funding through the
285	Florida Education Finance Program.
286	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
287	applications are subject to the following requirements:
288	(a)  A person or entity wishing to open a charter school
289	shall prepare and submit an application on a form developed by
290	the Department of Education, in consultation with the Florida
291	Schools of Excellence Commission, which that:
292	1.  Demonstrates how the school will use the guiding
293	principles and meet the statutorily defined purpose of a charter
294	school.
295	2.  Provides a detailed curriculum plan that illustrates
296	how students will be provided services to attain the Sunshine
297	State Standards.
298	3.  Contains goals and objectives for improving student
299	learning and measuring that improvement. These goals and
300	objectives must indicate how much academic improvement students
301	are expected to show each year, how success will be evaluated,
302	and the specific results to be attained through instruction.
303	4.  Describes the reading curriculum and differentiated
304	strategies that will be used for students reading at grade level
305	or higher and a separate curriculum and strategies for students
306	who are reading below grade level. A sponsor shall deny a
307	charter if the school does not propose a reading curriculum that
308	is consistent with effective teaching strategies that are
309	grounded in scientifically based reading research.
310	5.  Contains an annual financial plan for each year
311	requested by the charter for operation of the school for up to 5
312	years. This plan must contain anticipated fund balances based on
313	revenue projections, a spending plan based on projected revenues
314	and expenses, and a description of controls that will safeguard
315	finances and projected enrollment trends.
316	6.  Documents that the applicant has participated in the
317	training provided by the Department of Education.
318	(b)  A sponsor shall receive and review all applications
319	for a charter school using an evaluation instrument developed by
320	the Department of Education. Beginning with the 2007-2008 school
321	year, a sponsor shall receive and consider charter school
322	applications received on or before August 1 of each calendar
323	year for charter schools to be opened at the beginning of the
324	school district's next school year, or to be opened at a time
325	agreed to by the applicant and the sponsor. A sponsor may
326	receive applications later than this date if it chooses. A
327	sponsor may not charge an applicant for a charter any fee for
328	the processing or consideration of an application, and a sponsor
329	may not base its consideration or approval of an application
330	upon the promise of future payment of any kind.
331	1.  In order to facilitate an accurate budget projection
332	process, a sponsor shall be held harmless for FTE students who
333	are not included in the FTE projection due to approval of
334	charter school applications after the FTE projection deadline.
335	In a further effort to facilitate an accurate budget projection,
336	within 15 calendar days after receipt of a charter school
337	application, a sponsor shall report to the Department of
338	Education the name of the applicant entity, the proposed charter
339	school location, and its projected FTE.
340	2.  In order to ensure fiscal responsibility, an
341	application for a charter school shall include a full accounting
342	of expected assets, a projection of expected sources and amounts
343	of income, including income derived from projected student
344	enrollments and from community support, and an expense
345	projection that includes full accounting of the costs of
346	operation, including start-up costs.
347	3.  A sponsor shall by a majority vote approve or deny an
348	application no later than 60 calendar days after the application
349	is received, unless the sponsor and the applicant mutually agree
350	in writing to temporarily postpone the vote to a specific date,
351	at which time the sponsor shall by a majority vote approve or
352	deny the application. If the sponsor fails to act on the
353	application, an applicant may appeal to the State Board of
354	Education as provided in paragraph (c). If an application is
355	denied, the sponsor shall, within 10 calendar days, articulate
356	in writing the specific reasons, based upon good cause,
357	supporting its denial of the charter application and shall
358	provide the letter of denial and supporting documentation to the
359	applicant and to the Department of Education supporting those
360	reasons.
361	4.  For budget projection purposes, the sponsor shall
362	report to the Department of Education the approval or denial of
363	a charter application within 10 calendar days after such
364	approval or denial. In the event of approval, the report to the
365	Department of Education shall include the final projected FTE
366	for the approved charter school.
367	5.  Upon approval of a charter application, the initial
368	startup shall commence with the beginning of the public school
369	calendar for the district in which the charter is granted unless
370	the sponsor allows a waiver of this provision for good cause.
371	(g)1.  The Department of Education shall offer or arrange
372	for training and technical assistance to charter school
373	applicants in developing business plans and estimating costs and
374	income. This assistance shall address estimating startup costs,
375	projecting enrollment, and identifying the types and amounts of
376	state and federal financial assistance the charter school will
377	be eligible to receive. The department may provide other
378	technical assistance to an applicant upon written request.
379	2.  A charter school applicant must participate in the
380	training provided by the Department of Education prior to filing
381	an application. The training shall include instruction in
382	accurate financial planning and good business practices.
383	(7)  CHARTER.--The major issues involving the operation of
384	a charter school shall be considered in advance and written into
385	the charter. The charter shall be signed by the governing body
386	of the charter school and the sponsor, following a public
387	hearing to ensure community input.
388	(a)  The charter shall address, and criteria for approval
389	of the charter shall be based on:
390	1.  The school's mission, the students to be served, and
391	the ages and grades to be included.
392	2.  The focus of the curriculum, the instructional methods
393	to be used, any distinctive instructional techniques to be
394	employed, and identification and acquisition of appropriate
395	technologies needed to improve educational and administrative
396	performance which include a means for promoting safe, ethical,
397	and appropriate uses of technology which comply with legal and
398	professional standards. The charter shall ensure that reading is
399	a primary focus of the curriculum and that resources are
400	provided to identify and provide specialized instruction for
401	students who are reading below grade level. The curriculum and
402	instructional strategies for reading must be consistent with the
403	Sunshine State Standards and grounded in scientifically based
404	reading research.
405	3.  The current incoming baseline standard of student
406	academic achievement, the outcomes to be achieved, and the
407	method of measurement that will be used. The criteria listed in
408	this subparagraph shall include a detailed description for each
409	of the following:
410	a.  How the baseline student academic achievement levels
411	and prior rates of academic progress will be established.
412	b.  How these baseline rates will be compared to rates of
413	academic progress achieved by these same students while
414	attending the charter school.
415	c.  To the extent possible, how these rates of progress
416	will be evaluated and compared with rates of progress of other
417	closely comparable student populations.
418	The district school board is required to provide academic
419	student performance data to charter schools for each of their
420	students coming from the district school system, as well as
421	rates of academic progress of comparable student populations in
422	the district school system.
423	4.  The methods used to identify the educational strengths
424	and needs of students and how well educational goals and
425	performance standards are met by students attending the charter
426	school. Included in the methods is a means for the charter
427	school to ensure accountability to its constituents by analyzing
428	student performance data and by evaluating the effectiveness and
429	efficiency of its major educational programs. Students in
430	charter schools shall, at a minimum, participate in the
431	statewide assessment program created under s. 1008.22.
432	5.  In secondary charter schools, a method for determining
433	that a student has satisfied the requirements for graduation in
434	s. 1003.43.
435	6.  A method for resolving conflicts between the governing
436	body of the charter school and the sponsor.
437	7.  The admissions procedures and dismissal procedures,
438	including the school's code of student conduct.
439	8.  The ways by which the school will achieve a
440	racial/ethnic balance reflective of the community it serves or
441	within the racial/ethnic range of other public schools in the
442	same school district.
443	9.  The financial and administrative management of the
444	school, including a reasonable demonstration of the professional
445	experience or competence of those individuals or organizations
446	applying to operate the charter school or those hired or
447	retained to perform such professional services and the
448	description of clearly delineated responsibilities and the
449	policies and practices needed to effectively manage the charter
450	school. A description of internal audit procedures and
451	establishment of controls to ensure that financial resources are
452	properly managed must be included. Both public sector and
453	private sector professional experience shall be equally valid in
454	such a consideration.
455	10.  The asset and liability projections required in the
456	application which are incorporated into the charter and which
457	shall be compared with information provided in the annual report
458	of the charter school. The charter shall ensure that, if a
459	charter school internal audit or annual financial audit reveals
460	a state of financial emergency as defined in s. 218.503 or
461	deficit financial position, the auditors are required to notify
462	the charter school governing board, the sponsor, and the
463	Department of Education. The internal auditor shall report such
464	findings in the form of an exit interview to the principal or
465	the principal administrator of the charter school and the chair
466	of the governing board within 7 working days after finding the
467	state of financial emergency or deficit position. A final report
468	shall be provided to the entire governing board, the sponsor,
469	and the Department of Education within 14 working days after the
470	exit interview. When a charter school is in a state of financial
471	emergency, the charter school shall file a detailed financial
472	recovery plan with the sponsor. The department, with the
473	involvement of both sponsors and charter schools, shall
474	establish guidelines for developing such plans.
475	11.  A description of procedures that identify various
476	risks and provide for a comprehensive approach to reduce the
477	impact of losses; plans to ensure the safety and security of
478	students and staff; plans to identify, minimize, and protect
479	others from violent or disruptive student behavior; and the
480	manner in which the school will be insured, including whether or
481	not the school will be required to have liability insurance,
482	and, if so, the terms and conditions thereof and the amounts of
483	coverage.
484	12.  The term of the charter which shall provide for
485	cancellation of the charter if insufficient progress has been
486	made in attaining the student achievement objectives of the
487	charter and if it is not likely that such objectives can be
488	achieved before expiration of the charter. The initial term of a
489	charter shall be for 4 or 5 years. In order to facilitate access
490	to long-term financial resources for charter school
491	construction, charter schools that are operated by a
492	municipality or other public entity as provided by law are
493	eligible for up to a 15-year charter, subject to approval by the
494	district school board. A charter lab school is eligible for a
495	charter for a term of up to 15 years. In addition, to facilitate
496	access to long-term financial resources for charter school
497	construction, charter schools that are operated by a private,
498	not-for-profit, s. 501(c)(3) status corporation are eligible for
499	up to a 15-year charter, subject to approval by the district
500	school board. Such long-term charters remain subject to annual
501	review and may be terminated during the term of the charter, but
502	only according to the provisions set forth in subsection (8).
503	13.  The facilities to be used and their location.
504	14.  The qualifications to be required of the teachers and
505	the potential strategies used to recruit, hire, train, and
506	retain qualified staff to achieve best value.
507	15.  The governance structure of the school, including the
508	status of the charter school as a public or private employer as
509	required in paragraph (12)(i).
510	16.  A timetable for implementing the charter which
511	addresses the implementation of each element thereof and the
512	date by which the charter shall be awarded in order to meet this
513	timetable.
514	17.  In the case of an existing public school being
515	converted to charter status, alternative arrangements for
516	current students who choose not to attend the charter school and
517	for current teachers who choose not to teach in the charter
518	school after conversion in accordance with the existing
519	collective bargaining agreement or district school board rule in
520	the absence of a collective bargaining agreement. However,
521	alternative arrangements shall not be required for current
522	teachers who choose not to teach in a charter lab school, except
523	as authorized by the employment policies of the state university
524	which grants the charter to the lab school.
525	18.  Full disclosure of the identity of all relatives
526	employed by the charter school who are related to the charter
527	school owner, president, chairperson of the governing board of
528	directors, superintendent, governing board member, principal,
529	assistant principal, or any other person employed by the charter
530	school having equivalent decisionmaking authority. For the
531	purpose of this subparagraph, the term "relative" means father,
532	mother, son, daughter, brother, sister, uncle, aunt, first
533	cousin, nephew, niece, husband, wife, father-in-law, mother-in-
534	law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
535	stepfather, stepmother, stepson, stepdaughter, stepbrother,
536	stepsister, half brother, or half sister.
537	(9)  CHARTER SCHOOL REQUIREMENTS.--
538	(g)  A charter school shall provide for an annual financial
539	audit in accordance with s. 218.39. Financial audits that reveal
540	a state of financial emergency as defined in s. 218.503 and are
541	conducted by a certified public accountant or auditor in
542	accordance with s. 218.39 shall be provided to the governing
543	body of the charter school within 7 working days after finding
544	that a state of financial emergency exists. When a charter
545	school is found to be in a state of financial emergency by a
546	certified public accountant or auditor, the charter school must
547	file a detailed financial recovery plan with the sponsor within
548	30 days after receipt of the audit.
549	(g)(h)  In order to provide financial information that is
550	comparable to that reported for other public schools, charter
551	schools are to maintain all financial records which constitute
552	their accounting system:
553	1.  In accordance with the accounts and codes prescribed in
554	the most recent issuance of the publication titled "Financial
555	and Program Cost Accounting and Reporting for Florida Schools";
556	or
557	2.  At the discretion of the charter school governing
558	board, a charter school may elect to follow generally accepted
559	accounting standards for not-for-profit organizations, but must
560	reformat this information for reporting according to this
561	paragraph.
562
563	Charter schools shall provide annual financial report and
564	program cost report information in the state-required formats
565	for inclusion in district reporting in compliance with s.
566	1011.60(1). Charter schools that are operated by a municipality
567	or are a component unit of a parent nonprofit organization may
568	use the accounting system of the municipality or the parent but
569	must reformat this information for reporting according to this
570	paragraph. A charter school shall provide monthly financial
571	statements to the sponsor.
572	(h)(i)  The governing board of the charter school shall
573	annually adopt and maintain an operating budget.
574	(i)(j)  The governing body of the charter school shall
575	exercise continuing oversight over charter school operations.
576	(j)(k)  The governing body of the charter school shall be
577	responsible for:
578	1.  Ensuring that the charter school has retained the
579	services of a certified public accountant or auditor for the
580	annual financial audit, pursuant to s. 1002.345(2) paragraph
581	(g), who shall submit the report to the governing body.
582	2.  Reviewing and approving the audit report, including
583	audit findings and recommendations for the financial recovery
584	plan.
585	3.a.  Performing the duties provided for in s. 1002.345,
586	including monitoring a corrective action plan.
587	b.  Monitoring a financial recovery plan in order to ensure
588	compliance.
589	4.  Participating in governance training approved by the
590	department that must include government in the sunshine,
591	conflicts of interest, ethics, and financial responsibility.
592	(k)(l)  The governing body of the charter school shall
593	report its progress annually to its sponsor, which shall forward
594	the report to the Commissioner of Education at the same time as
595	other annual school accountability reports. The Department of
596	Education shall develop a uniform, online annual accountability
597	report to be completed by charter schools. This report shall be
598	easy to utilize and contain demographic information, student
599	performance data, and financial accountability information. A
600	charter school shall not be required to provide information and
601	data that is duplicative and already in the possession of the
602	department. The Department of Education shall include in its
603	compilation a notation if a school failed to file its report by
604	the deadline established by the department. The report shall
605	include at least the following components:
606	1.  Student achievement performance data, including the
607	information required for the annual school report and the
608	education accountability system governed by ss. 1008.31 and
609	1008.345. Charter schools are subject to the same accountability
610	requirements as other public schools, including reports of
611	student achievement information that links baseline student data
612	to the school's performance projections identified in the
613	charter. The charter school shall identify reasons for any
614	difference between projected and actual student performance.
615	2.  Financial status of the charter school which must
616	include revenues and expenditures at a level of detail that
617	allows for analysis of the ability to meet financial obligations
618	and timely repayment of debt.
619	3.  Documentation of the facilities in current use and any
620	planned facilities for use by the charter school for instruction
621	of students, administrative functions, or investment purposes.
622	4.  Descriptive information about the charter school's
623	personnel, including salary and benefit levels of charter school
624	employees, the proportion of instructional personnel who hold
625	professional or temporary certificates, and the proportion of
626	instructional personnel teaching in-field or out-of-field.
627	(l)(m)  A charter school shall not levy taxes or issue
628	bonds secured by tax revenues.
629	(m)(n)  A charter school shall provide instruction for at
630	least the number of days required by law for other public
631	schools, and may provide instruction for additional days.
632	(n)(o)  The director and a representative of the governing
633	body of a charter school that has received a school grade of "D"
634	under s. 1008.34(2) shall appear before the sponsor or the
635	sponsor's staff at least once a year to present information
636	concerning each contract component having noted deficiencies.
637	The sponsor shall communicate at the meeting, and in writing to
638	the director, the services provided to the school to help the
639	school address its deficiencies.
640	(o)(p)  Upon notification that a charter school receives a
641	school grade of "D" for 2 consecutive years or a school grade of
642	"F" under s. 1008.34(2), the charter school sponsor or the
643	sponsor's staff shall require the director and a representative
644	of the governing body to submit to the sponsor for approval a
645	school improvement plan to raise student achievement and to
646	implement the plan. The sponsor has the authority to approve a
647	school improvement plan that the charter school will implement
648	in the following school year. The sponsor may also consider the
649	State Board of Education's recommended action pursuant to s.
650	1008.33(1) as part of the school improvement plan. The
651	Department of Education shall offer technical assistance and
652	training to the charter school and its governing body and
653	establish guidelines for developing, submitting, and approving
654	such plans.
655	1.  If the charter school fails to improve its student
656	performance from the year immediately prior to the
657	implementation of the school improvement plan, the sponsor shall
658	place the charter school on probation and shall require the
659	charter school governing body to take one of the following
660	corrective actions:
661	a.  Contract for the educational services of the charter
662	school;
663	b.  Reorganize the school at the end of the school year
664	under a new director or principal who is authorized to hire new
665	staff and implement a plan that addresses the causes of
666	inadequate progress; or
667	c.  Reconstitute the charter school.
668	2.  A charter school that is placed on probation shall
669	continue the corrective actions required under subparagraph 1.
670	until the charter school improves its student performance from
671	the year prior to the implementation of the school improvement
672	plan.
673	3.  Notwithstanding any provision of this paragraph, the
674	sponsor may terminate the charter at any time pursuant to the
675	provisions of subsection (8).
676	(p)(q)  The director and a representative of the governing
677	body of a graded charter school that has submitted a school
678	improvement plan or has been placed on probation under paragraph
679	(o) (p) shall appear before the sponsor or the sponsor's staff
680	at least once a year to present information regarding the
681	corrective strategies that are being implemented by the school
682	pursuant to the school improvement plan. The sponsor shall
683	communicate at the meeting, and in writing to the director, the
684	services provided to the school to help the school address its
685	deficiencies.
686	(17)  FUNDING.--Students enrolled in a charter school,
687	regardless of the sponsorship, shall be funded as if they are in
688	a basic program or a special program, the same as students
689	enrolled in other public schools in the school district. Funding
690	for a charter lab school shall be as provided in s. 1002.32. The
691	maximum number of students eligible to be funded in any
692	classroom of any charter school shall be the maximum number
693	prescribed by law.
694	(a)  Each charter school shall report its student
695	enrollment to the sponsor as required in s. 1011.62, and in
696	accordance with the definitions in s. 1011.61. The sponsor shall
697	include each charter school's enrollment in the district's
698	report of student enrollment. All charter schools submitting
699	student record information required by the Department of
700	Education shall comply with the Department of Education's
701	guidelines for electronic data formats for such data, and all
702	districts shall accept electronic data that complies with the
703	Department of Education's electronic format.
704	(b)  The basis for the agreement for funding students
705	enrolled in a charter school shall be the sum of the school
706	district's operating funds from the Florida Education Finance
707	Program as provided in s. 1011.62 and the General Appropriations
708	Act, including gross state and local funds, discretionary
709	lottery funds, and funds from the school district's current
710	operating discretionary millage levy; divided by total funded
711	weighted full-time equivalent students in the school district;
712	multiplied by the weighted full-time equivalent students for the
713	charter school. Charter schools whose students or programs meet
714	the eligibility criteria in law shall be entitled to their
715	proportionate share of categorical program funds included in the
716	total funds available in the Florida Education Finance Program
717	by the Legislature, including transportation. Total funding for
718	each charter school shall be recalculated during the year to
719	reflect the revised calculations under the Florida Education
720	Finance Program by the state and the actual weighted full-time
721	equivalent students reported by the charter school during the
722	full-time equivalent student survey periods designated by the
723	Commissioner of Education.
724	(c)  If the district school board is providing programs or
725	services to students funded by federal funds, any eligible
726	students enrolled in charter schools in the school district
727	shall be provided federal funds for the same level of service
728	provided students in the schools operated by the district school
729	board. Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all
730	charter schools shall receive all federal funding for which the
731	school is otherwise eligible, including Title I funding, not
732	later than 5 months after the charter school first opens and
733	within 5 months after any subsequent expansion of enrollment.
734	(d)  District school boards shall make timely and efficient
735	payment and reimbursement to charter schools, including
736	processing paperwork required to access special state and
737	federal funding for which they may be eligible. The district
738	school board may distribute funds to a charter school for up to
739	3 months based on the projected full-time equivalent student
740	membership of the charter school. Thereafter, the results of
741	full-time equivalent student membership surveys shall be used in
742	adjusting the amount of funds distributed monthly to the charter
743	school for the remainder of the fiscal year. The payment shall
744	be issued no later than 10 working days after the district
745	school board receives a distribution of state or federal funds.
746	If a warrant for payment is not issued within 10 working days
747	after receipt of funding by the district school board, the
748	school district shall pay to the charter school, in addition to
749	the amount of the scheduled disbursement, interest at a rate of
750	1 percent per month calculated on a daily basis on the unpaid
751	balance from the expiration of the 10 working days until such
752	time as the warrant is issued.
753	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--
754	(a)  The Department of Education shall provide information
755	to the public, directly and through sponsors, both on how to
756	form and operate a charter school and on how to enroll in
757	charter schools once they are created. This information shall
758	include a standard application format, charter format, and
759	charter renewal format which shall include the information
760	specified in subsection (7) and shall be developed by consulting
761	and negotiating with both school districts and charter schools
762	before implementation. These formats shall be used as guidelines
763	by charter school sponsors.
764	(b)1.  The Department of Education shall report student
765	assessment data pursuant to s. 1008.34(3)(b) which is reported
766	to schools that receive a school grade pursuant to s. 1008.34 or
767	student assessment data pursuant to s. 1008.341(3) which is
768	reported to alternative schools that receive a school
769	improvement rating pursuant to s. 1008.341 to each charter
770	school that:
771	a.  Does not receive a school grade pursuant to s. 1008.34
772	or a school improvement rating pursuant to s. 1008.341; and
773	b.  Serves at least 10 students who are tested on the
774	statewide assessment test pursuant to s. 1008.22.
775	2.  The charter school shall report the information in
776	subparagraph 1. to each parent of a student at the charter
777	school, the parent of a child on a waiting list for the charter
778	school, the district in which the charter school is located, and
779	the governing board of the charter school. This paragraph does
780	not abrogate the provisions of s. 1002.22, relating to student
781	records, and the requirements of 20 U.S.C. s. 1232g, the Family
782	Educational Rights and Privacy Act.
783	3.a.  Pursuant to this paragraph, the Department of
784	Education shall compare the charter school student performance
785	data for each charter school in subparagraph 1. with the student
786	performance data in traditional public schools in the district
787	in which the charter school is located and other charter schools
788	in the state. For alternative charter schools, the department
789	shall compare the student performance data described in this
790	paragraph with all alternative schools in the state. The
791	comparative data shall be provided by the following grade
792	groupings:
793	(I)  Grades 3 through 5;
794	(II)  Grades 6 through 8; and
795	(III)  Grades 9 through 11.
796	b.  Each charter school shall provide the information in
797	this paragraph on its Internet website and also provide notice
798	to the public in a manner that notifies the community at large,
799	as provided by rules of the State Board of Education. The State
800	Board of Education shall adopt rules to administer the notice
801	requirements of this subparagraph pursuant to ss. 120.536(1) and
802	120.54. The website shall include, through links or actual
803	content, other information related to school performance.
804	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
805	of the annual report required by paragraph (9)(k)(l), the
806	Department of Education shall provide to the State Board of
807	Education, the Commissioner of Education, the Governor, the
808	President of the Senate, and the Speaker of the House of
809	Representatives an analysis and comparison of the overall
810	performance of charter school students, to include all students
811	whose scores are counted as part of the statewide assessment
812	program, versus comparable public school students in the
813	district as determined by the statewide assessment program
814	currently administered in the school district, and other
815	assessments administered pursuant to s. 1008.22(3).
816	(24)  RESTRICTION ON EMPLOYMENT OF RELATIVES.--
817	(a)  This subsection applies to charter school personnel in
818	a charter school operated by a private entity. As used in this
819	subsection, the term:
820	1.  "Charter school personnel" means a charter school
821	owner, president, chairperson of the governing board of
822	directors, superintendent, governing board member, principal,
823	assistant principal, or any other person employed by the charter
824	school having equivalent decisionmaking authority and in whom is
825	vested the authority, or to whom the authority has been
826	delegated, to appoint, employ, promote, or advance individuals
827	or to recommend individuals for appointment, employment,
828	promotion, or advancement in connection with employment in a
829	charter school, including the authority as a member of a
830	governing board of a charter school to vote on the appointment,
831	employment, promotion, or advancement of individuals.
832	2.  "Relative" means father, mother, son, daughter,
833	brother, sister, uncle, aunt, first cousin, nephew, niece,
834	husband, wife, father-in-law, mother-in-law, son-in-law,
835	daughter-in-law, brother-in-law, sister-in-law, stepfather,
836	stepmother, stepson, stepdaughter, stepbrother, stepsister, half
837	brother, or half sister.
838	(b)  Charter school personnel may not appoint, employ,
839	promote, or advance, or advocate for appointment, employment,
840	promotion, or advancement, in or to a position in the charter
841	school in which the personnel are serving or over which the
842	personnel exercises jurisdiction or control any individual who
843	is a relative. An individual may not be appointed, employed,
844	promoted, or advanced in or to a position in a charter school if
845	such appointment, employment, promotion, or advancement has been
846	advocated by charter school personnel who serve in or exercise
847	jurisdiction or control over the charter school and who is a
848	relative of the individual or if such appointment, employment,
849	promotion, or advancement is made by the governing board of
850	which a relative of the individual is a member.
851	(c)  Mere approval of budgets does not constitute
852	"jurisdiction or control" for the purposes of this subsection.
853	Charter school personnel in schools operated by a municipality
854	or other public entity are subject to the provisions of s.
855	112.3135.
856	(25)  STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--
857	(a)  A member of a governing board of a charter school,
858	including a charter school operated by a private entity, is
859	subject to the provisions of ss. 112.313(2), (3), (7), and (12)
860	and 112.3143(3).
861	(b)  A member of a governing board of a charter school
862	operated by a municipality or other public entity is subject to
863	the provisions of s. 112.3144, relating to the disclosure of
864	financial interests.
865	Section 7.  Subsection (5), paragraph (a) of subsection
866	(7), paragraph (a) of subsection (11), and subsection (12) of
867	section 1002.335, Florida Statutes, are amended to read:
868	1002.335  Florida Schools of Excellence Commission.--
869	(5)  CHARTERING AUTHORITY.--
870	(a)  A charter school applicant may submit an application
871	to the commission only if the school district in which the FSE
872	charter school is to be located has not retained exclusive
873	authority to authorize charter schools as provided in paragraph
874	(e). If a district school board has not retained exclusive
875	authority to authorize charter schools as provided in paragraph
876	(e), the district school board and the commission shall have
877	concurrent authority to authorize charter schools and FSE
878	charter schools, respectively, to be located within the
879	geographic boundaries of the school district. The district
880	school board shall monitor and oversee all charter schools
881	authorized by the district school board pursuant to s. 1002.33.
882	The commission shall monitor and oversee all FSE charter schools
883	sponsored by the commission pursuant to subsection (4).
884	(b)  Paragraph (e) may not be construed to eliminate the
885	ability of a district school board to authorize charter schools
886	pursuant to s. 1002.33. A district school board shall retain the
887	authority to reauthorize and to oversee any charter school that
888	it has authorized, except with respect to any charter school
889	that is converted to an FSE charter school under this section.
890	(c)  For fiscal year 2007-2008 and for each fiscal year
891	thereafter, a district school board may seek to retain exclusive
892	authority to authorize charter schools within the geographic
893	boundaries of the school district by presenting to the State
894	Board of Education, on or before March 1 of the fiscal year
895	prior to that for which the exclusive authority is to apply, a
896	written resolution adopted by the district school board
897	indicating the intent to seek retain exclusive authority to
898	authorize charter schools. A district school board may seek to
899	retain the exclusive authority to authorize charter schools by
900	presenting to the state board the written resolution on or
901	before a date 60 days after establishment of the commission. The
902	written resolution shall be accompanied by a written description
903	addressing the elements described in paragraph (e). The district
904	school board shall provide a complete copy of the resolution,
905	including the description, to each charter school authorized by
906	the district school board on or before the date it submits the
907	resolution to the state board.
908	(d)  A party may challenge the grant of exclusive authority
909	made by the State Board of Education pursuant to paragraph (e)
910	by filing with the state board a notice of challenge within 30
911	days after the state board grants initial exclusive authority.
912	The notice shall be accompanied by a specific written
913	description of the basis for the challenge. The challenging
914	party, at the time of filing notice with the state board, shall
915	provide a copy of the notice of challenge to the district school
916	board that has been granted exclusive authority. The state board
917	shall permit the district school board the opportunity to appear
918	and respond in writing to the challenge. The state board shall
919	make a determination upon the challenge within 60 days after
920	receiving the notice of challenge.
921	(e)  The State Board of Education shall grant to a district
922	school board exclusive authority to authorize charter schools
923	within the geographic boundaries of the school district if the
924	state board determines, after adequate notice, in a public
925	hearing, and after receiving input from any charter school
926	authorized by the district school board, that the district
927	school board has provided fair and equitable treatment to its
928	charter schools during the 4 years prior to the district school
929	board's submission of the resolution described in paragraph (c).
930	The state board's review of the resolution shall, at a minimum,
931	include consideration of the following:
932	1.  Compliance with the provisions of s. 1002.33.
933	2.  Compliance with full and accurate accounting practices
934	and charges for central administrative overhead costs.
935	3.  Compliance with requirements allowing a charter school,
936	at its discretion, to purchase certain services or a combination
937	of services at actual cost to the district.
938	4.  The absence of a district school board moratorium
939	regarding charter schools or the absence of any districtwide
940	charter school enrollment limits.
941	5.  Compliance with valid orders of the state board.
942	6.  The provision of assistance to charter schools to meet
943	their facilities needs by including those needs in local bond
944	issues or otherwise providing available land and facilities that
945	are comparable to those provided to other public school students
946	in the same grade levels within the school district.
947	7.  The distribution to charter schools authorized by the
948	district school board of a pro rata share of federal and state
949	grants received by the district school board, except for any
950	grant received for a particular purpose which, by its express
951	terms, is intended to benefit a student population not able to
952	be served by, or a program not able to be offered at, a charter
953	school that did not receive a proportionate share of such grant
954	proceeds.
955	8.  The provision of adequate staff and other resources to
956	serve charter schools authorized by the district school board,
957	which services are provided by the district school board at a
958	cost to the charter schools that does not exceed their actual
959	cost to the district school board.
960	9.  The lack of a policy or practice of imposing individual
961	charter school enrollment limits, except as otherwise provided
962	by law.
963	10.  The provision of an adequate number of educational
964	choice programs to serve students exercising their rights to
965	transfer pursuant to the "No Child Left Behind Act of 2001,"
966	Pub. L. No. 107-110, and a history of charter school approval
967	that encourages chartering.
968	(f)  The decision of the State Board of Education pursuant
969	to paragraph (e) shall not be subject to the provisions of
970	chapter 120 and shall be a final action subject to judicial
971	review by the district court of appeal.
972	(g)  For district school boards that have no discernible
973	history of authorizing charter schools, the State Board of
974	Education may not grant exclusive authority unless the district
975	school board demonstrates that no approvable application has
976	come before the district school board.
977	(h)1.  A grant of exclusive authority by the State Board of
978	Education shall continue so long as a district school board
979	continues to comply with this section and has presented a
980	written resolution to the state board as set forth in paragraph
981	(c). For purposes of this paragraph, there is established a
982	rebuttable presumption that a district school board that has
983	been granted exclusivity is acting in good faith in its capacity
984	to review applications.
985	2.  A party may challenge the grant of exclusive authority
986	made by the State Board of Education pursuant to this paragraph
987	by filing with the state board a notice of challenge. The notice
988	shall be accompanied by a specific written description of the
989	basis for the challenge. The challenging party, at the time of
990	filing notice with the state board, shall provide a copy of the
991	notice of challenge to the district school board that has been
992	granted exclusive authority. The State Board of Education shall
993	permit the district school board the opportunity to appear and
994	respond in writing to the challenge. The state board shall make
995	a determination upon the challenge within 60 days after
996	receiving the notice of challenge.
997	(i)  Notwithstanding any other provision of this section to
998	the contrary, a district school board may permit the
999	establishment of one or more FSE charter schools within the
1000	geographic boundaries of the school district by adopting a
1001	favorable resolution and submitting the resolution to the State
1002	Board of Education. The resolution shall be effective until it
1003	is rescinded by resolution of the district school board.
1004	(7)  COSPONSOR AGREEMENT.--
1005	(a)  Upon approval of a cosponsor, the commission and the
1006	cosponsor shall enter into an agreement that defines the
1007	cosponsor's rights and obligations and includes the following:
1008	1.  An explanation of the personnel, contractual and
1009	interagency relationships, and potential revenue sources
1010	referenced in the application as required in paragraph (6)(c).
1011	2.  Incorporation of the requirements of equal access for
1012	all students, including any plans to provide food service or
1013	transportation reasonably necessary to provide access to as many
1014	students as possible.
1015	3.  Incorporation of the requirement to serve low-income,
1016	low-performing, gifted, or underserved student populations.
1017	4.  An explanation of the academic and financial goals and
1018	expected outcomes for the cosponsor's charter schools and the
1019	method and plans by which they will be measured and achieved as
1020	referenced in the application.
1021	5.  The conflict-of-interest policies referenced in the
1022	application.
1023	6.  An explanation of the disposition of facilities and
1024	assets upon termination and dissolution of a charter school
1025	approved by the cosponsor.
1026	7.a.  A provision requiring the cosponsor to annually
1027	appear before the commission and provide a report as to the
1028	information provided pursuant to s. 1002.33(9)(k)(l) for each of
1029	its charter schools.
1030	b.  A provision requiring the cosponsor to perform the
1031	duties provided for in s. 1002.345.
1032	c.  A provision requiring the governing board to perform
1033	the duties provided for in s. 1002.345, including monitoring the
1034	corrective action plan.
1035	8.  A provision requiring that the cosponsor report the
1036	student enrollment in each of its sponsored charter schools to
1037	the district school board of the county in which the school is
1038	located.
1039	9.  A provision requiring that the cosponsor work with the
1040	commission to provide the necessary reports to the State Board
1041	of Education.
1042	10.  Any other reasonable terms deemed appropriate by the
1043	commission given the unique characteristics of the cosponsor.
1044	(11)  APPLICATION OF CHARTER SCHOOL STATUTE.--
1045	(a)  The provisions of s. 1002.33(7)-(12), (14), and (16)-
1046	(19), (21)(b), (24), and (25) shall apply to the commission and
1047	the cosponsors and charter schools approved pursuant to this
1048	section.
1049	(12)  ACCESS TO INFORMATION.--The commission shall provide
1050	maximum access to information to all parents in the state. It
1051	shall maintain information systems, including, but not limited
1052	to, a user-friendly Internet website, that will provide
1053	information and data necessary for parents to make informed
1054	decisions, including a link to the information provided in s.
1055	1002.33(21)(b)3.b. At a minimum, the commission must provide
1056	parents with information on its accountability standards, links
1057	to schools of excellence throughout the state, and public
1058	education programs available in the state.
1059	Section 8.  Subsections (4) and (5), paragraphs (d) and (f)
1060	of subsection (6), paragraph (c) of subsection (10), and
1061	subsection (13) of section 1002.34, Florida Statutes, are
1062	amended to read:
1063	1002.34  Charter technical career centers.--
1064	(4)  CHARTER.--A sponsor may designate centers as provided
1065	in this section. An application to establish a center may be
1066	submitted by a sponsor or another organization that is
1067	determined, by rule of the State Board of Education, to be
1068	appropriate. However, an independent school is not eligible for
1069	status as a center. The charter must be signed by the governing
1070	body of the center and the sponsor, and must be approved by the
1071	district school board and community college board of trustees in
1072	whose geographic region the facility is located. If a charter
1073	technical career center is established by the conversion to
1074	charter status of a public technical center formerly governed by
1075	a district school board, the charter status of that center takes
1076	precedence in any question of governance. The governance of the
1077	center or of any program within the center remains with its
1078	board of directors unless the board agrees to a change in
1079	governance or its charter is revoked as provided in subsection
1080	(15). Such a conversion charter technical career center is not
1081	affected by a change in the governance of public technical
1082	centers or of programs within other centers that are or have
1083	been governed by district school boards. A charter technical
1084	career center, or any program within such a center, that was
1085	governed by a district school board and transferred to a
1086	community college prior to the effective date of this act is not
1087	affected by this provision. An applicant who wishes to establish
1088	a center must submit to the district school board or community
1089	college board of trustees, or a consortium of one or more of
1090	each, an application on a form developed by the Department of
1091	Education which that includes:
1092	(a)  The name of the proposed center.
1093	(b)  The proposed structure of the center, including a list
1094	of proposed members of the board of directors or a description
1095	of the qualifications for and method of their appointment or
1096	election.
1097	(c)  The workforce development goals of the center, the
1098	curriculum to be offered, and the outcomes and the methods of
1099	assessing the extent to which the outcomes are met.
1100	(d)  The admissions policy and criteria for evaluating the
1101	admission of students.
1102	(e)  A description of the staff responsibilities and the
1103	proposed qualifications of the teaching staff.
1104	(f)  A description of the procedures to be implemented to
1105	ensure significant involvement of representatives of business
1106	and industry in the operation of the center.
1107	(g)  A method for determining whether a student has
1108	satisfied the requirements for graduation specified in s.
1109	1003.43 and for completion of a postsecondary certificate or
1110	degree.
1111	(h)  A method for granting secondary and postsecondary
1112	diplomas, certificates, and degrees.
1113	(i)  A description of and address for the physical facility
1114	in which the center will be located.
1115	(j)  A method of resolving conflicts between the governing
1116	body of the center and the sponsor and between consortium
1117	members, if applicable.
1118	(k)  A method for reporting student data as required by law
1119	and rule.
1120	(l)  A statement that the applicant has participated in the
1121	training provided by the Department of Education.
1122	(m)  The identity of all relatives employed by the charter
1123	technical career center who are related to the center owner,
1124	president, chairperson of the governing board of directors,
1125	superintendent, governing board member, principal, assistant
1126	principal, or any other person employed by the center who has
1127	equivalent decisionmaking authority. As used in this paragraph,
1128	the term "relative" means father, mother, son, daughter,
1129	brother, sister, uncle, aunt, first cousin, nephew, niece,
1130	husband, wife, father-in-law, mother-in-law, son-in-law,
1131	daughter-in-law, brother-in-law, sister-in-law, stepfather,
1132	stepmother, stepson, stepdaughter, stepbrother, stepsister, half
1133	brother, or half sister.
1134	(m)(l)  Other information required by the district school
1135	board or community college board of trustees.
1136
1137	Students at a center must meet the same testing and academic
1138	performance standards as those established by law and rule for
1139	students at public schools and public technical centers. The
1140	students must also meet any additional assessment indicators
1141	that are included within the charter approved by the district
1142	school board or community college board of trustees.
1143	(5)  APPLICATION.--An application to establish a center
1144	must be submitted by February 1 of the year preceding the school
1145	year in which the center will begin operation. The sponsor must
1146	review the application using an evaluation instrument developed
1147	by the Department of Education and make a final decision on
1148	whether to approve the application and grant the charter by
1149	March 1, and may condition the granting of a charter on the
1150	center's taking certain actions or maintaining certain
1151	conditions. Such actions and conditions must be provided to the
1152	applicant in writing. The district school board or community
1153	college board of trustees is not required to issue a charter to
1154	any person.
1155	(6)  SPONSOR.--A district school board or community college
1156	board of trustees or a consortium of one or more of each may
1157	sponsor a center in the county in which the board has
1158	jurisdiction.
1159	(d)1.  The Department of Education shall offer or arrange
1160	for training and technical assistance to applicants in
1161	developing business plans and estimating costs and income. This
1162	assistance shall address estimating startup costs, projecting
1163	enrollment, and identifying the types and amounts of state and
1164	federal financial assistance the center will be eligible to
1165	receive. The training shall include instruction in accurate
1166	financial planning and good business practices.
1167	2.  An applicant must participate in the training provided
1168	by the Department of Education prior to filing an application.
1169	The Department of Education may provide technical assistance to
1170	an applicant upon written request.
1171	(f)  The sponsor shall monitor and review the center's
1172	progress toward charter goals and shall monitor the center's
1173	revenues and expenditures. The sponsor shall perform the duties
1174	provided for in s. 1002.345.
1175	(10)  EXEMPTION FROM STATUTES.--
1176	(c)  A center must comply with the antidiscrimination
1177	provisions of s. 1000.05 and the provisions of s. 1002.33(24),
1178	relating to the employment of relatives.
1179	(13)  BOARD OF DIRECTORS AUTHORITY.--The board of directors
1180	of a center may decide matters relating to the operation of the
1181	school, including budgeting, curriculum, and operating
1182	procedures, subject to the center's charter. The board of
1183	directors is responsible for performing the duties provided for
1184	in s. 1002.345, including monitoring the corrective action plan.
1185	The board of directors must comply with the provisions of s.
1186	1002.33(25).
1187	Section 9.  Section 1002.345, Florida Statutes, is created
1188	to read:
1189	1002.345  Determination of financial weaknesses and
1190	financial emergencies for charter schools and charter technical
1191	career centers.--This section applies to charter schools
1192	operating pursuant to ss. 1002.33 and 1002.335 and to charter
1193	technical career centers operating pursuant to s. 1002.34.
1194	(1)  FINANCIAL WEAKNESS; REQUIREMENTS.--
1195	(a)  A charter school and a charter technical career center
1196	shall be subject to an expedited review by the sponsor when any
1197	one of the following conditions occurs:
1198	1.  An end-of-year financial deficit.
1199	2.  A substantial decline in student enrollment without a
1200	commensurate reduction in expenses.
1201	3.  Insufficient revenues to pay current operating
1202	expenses.
1203	4.  Insufficient revenues to pay long-term expenses.
1204	5.  Disproportionate administrative expenses.
1205	6.  Excessive debt.
1206	7.  Excessive expenditures.
1207	8.  Inadequate fund balances or reserves.
1208	9.  Failure to meet financial reporting requirements
1209	pursuant to s. 1002.33(9), s. 1002.335(7)(a)7., or s.
1210	1002.34(14).
1211	10.  Weak financial controls or other adverse financial
1212	conditions identified through an internal audit or annual audit
1213	conducted pursuant to s. 218.39.
1214	11.  Negative financial findings cited in reports by the
1215	Auditor General or the Office of Program Policy Analysis and
1216	Government Accountability.
1217	(b)  A sponsor shall notify the governing board within 7
1218	working days when one or more of the conditions specified in
1219	paragraph (a) occur.
1220	(c)  The governing board and the sponsor shall develop a
1221	corrective action plan and file the plan with the Commissioner
1222	of Education and the Florida Schools of Excellence Commission
1223	within 30 working days. If the governing board and the sponsor
1224	are unable to agree on a corrective action plan, the State Board
1225	of Education shall determine the components of the plan. The
1226	governing board shall implement the plan.
1227	(d)  The governing board shall include the corrective
1228	action plan and the status of its implementation in the annual
1229	progress report to the sponsor that is required under s.
1230	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1231	(e)  If the governing board fails to implement the
1232	corrective action plan within 1 year, the State Board of
1233	Education shall prescribe any steps necessary for the charter
1234	school or the charter technical career center to comply with
1235	state requirements.
1236	(f)  The chair of the governing board shall annually appear
1237	before the State Board of Education and report on the
1238	implementation of the State Board of Education's requirements.
1239	(2)  FINANCIAL EMERGENCY; DEFICIT FUND BALANCE; DEFICIT NET
1240	ASSETS; REQUIREMENTS.--
1241	(a)  A charter school and a charter technical career center
1242	shall provide for a certified public accountant or auditor to
1243	conduct an annual financial audit in accordance with s. 218.39.
1244	(b)  The charter shall ensure that, if an internal audit or
1245	annual financial audit of a charter school or charter technical
1246	career center reveals one or more of the conditions in s.
1247	218.503(1) have occurred or will occur if action is not taken or
1248	if a charter school or charter technical career center has a
1249	deficit fund balance or deficit net assets, the auditor must
1250	notify the governing board of the charter school or charter
1251	technical career center, as appropriate, the sponsor, and the
1252	Commissioner of Education.
1253	(c)  When a financial audit conducted by a certified public
1254	accountant or auditor in accordance with s. 218.503 reveals that
1255	one or more of the conditions in s. 218.503(1) have occurred or
1256	will occur if action is not taken or when a deficit fund balance
1257	or deficit net assets exist, the auditor shall notify and
1258	provide the financial audit to the governing board of the
1259	charter school or charter technical career center, as
1260	appropriate, the sponsor, and the Commissioner of Education
1261	within 7 working days after the finding is made.
1262	1.  The internal auditor shall:
1263	a.  Report the findings in the form of an exit interview
1264	with the principal or the principal administrator of the charter
1265	school or the director of the charter technical career center,
1266	as appropriate, and the chair of the governing board within 7
1267	working days after the finding is made.
1268	b.  Provide a final report to all members of the governing
1269	board, the sponsor, and the Department of Education within 14
1270	working days after the exit interview.
1271	2.  When the charter school or charter technical career
1272	center is found to be in a state of financial emergency pursuant
1273	to s. 218.503, the charter school or charter technical career
1274	center shall file a detailed financial recovery plan as provided
1275	for in s. 218.503 with the sponsor within 30 days after being
1276	notified by the Commissioner of Education that a financial
1277	recovery plan is needed.
1278	(d)  The sponsor shall file a copy of the financial
1279	recovery plan with the Commissioner of Education and the Florida
1280	Schools of Excellence Commission.
1281	(e)  The governing board shall include the financial
1282	recovery plan and the status of its implementation in the annual
1283	progress report to the sponsor which is required under s.
1284	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1285	(3)  REPORT.--The Commissioner of Education shall annually
1286	report to the State Board of Education each charter school and
1287	charter technical career center that is subject to a financial
1288	recovery plan or a corrective action plan under this section.
1289	(4)  RULES.--The State Board of Education shall adopt rules
1290	pursuant to ss. 120.536(1) and 120.54 for developing financial
1291	recovery and corrective action plans.
1292	(5)  TECHNICAL ASSISTANCE.--The Department of Education
1293	shall provide technical assistance to charter schools, charter
1294	technical career centers, governing boards, and sponsors in
1295	developing financial recovery and corrective action plans.
1296	(6)  FAILURE TO CORRECT DEFICIENCIES.--The sponsor may
1297	choose not to renew or may terminate a charter if the charter
1298	school or charter technical career center fails to correct the
1299	deficiencies in the corrective action plan within 1 year or
1300	exhibits one or more financial emergency conditions as provided
1301	in s. 218.503 for 2 consecutive years.
1302	Section 10.  This act shall take effect July 1, 2008.

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