Amendment
Bill No. CS/CS/SB 1652

Amendment No. 784459

CHAMBER ACTION
Senate		House
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1	Representatives Flores and Legg offered the following:
2
3	Amendment (with title amendment)
4	Remove lines 96-1316 and insert:
5	local governmental entities, charter schools, charter technical
6	career centers, and district school boards must include, but are
7	not limited to, requirements for the reporting of information
8	necessary to carry out the purposes of the Local Governmental
9	Entity, Charter School, Charter Technical Career Center, and
10	District School Board Financial Emergencies Act as stated in s.
11	218.501.
12	Section 2.  Section 218.50, Florida Statutes, is amended to
13	read:
14	218.50  Short title.--Sections 218.50-218.504 may be cited
15	as the "Local Governmental Entity, Charter School, Charter
16	Technical Career Center, and District School Board Financial
17	Emergencies Act."
18	Section 3.  Section 218.501, Florida Statutes, is amended
19	to read:
20	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
21	(1)  To promote the fiscal responsibility of local
22	governmental entities, charter schools, charter technical career
23	centers, and district school boards.
24	(2)  To assist local governmental entities, charter
25	schools, charter technical career centers, and district school
26	boards in providing essential services without interruption and
27	in meeting their financial obligations.
28	(3)  To assist local governmental entities, charter
29	schools, charter technical career centers, and district school
30	boards through the improvement of local financial management
31	procedures.
32	Section 4.  Subsections (1), (2), and (4) of section
33	218.503, Florida Statutes, are amended to read:
34	218.503  Determination of financial emergency.--
35	(1)  Local governmental entities, charter schools, charter
36	technical career centers, and district school boards shall be
37	subject to review and oversight by the Governor, the charter
38	school sponsor, the charter technical career center sponsor, or
39	the Commissioner of Education, as appropriate, when any one of
40	the following conditions occurs:
41	(a)  Failure within the same fiscal year in which due to
42	pay short-term loans or failure to make bond debt service or
43	other long-term debt payments when due, as a result of a lack of
44	funds.
45	(b)  Failure to pay uncontested claims from creditors
46	within 90 days after the claim is presented, as a result of a
47	lack of funds.
48	(c)  Failure to transfer at the appropriate time, due to
49	lack of funds:
50	1.  Taxes withheld on the income of employees; or
51	2.  Employer and employee contributions for:
52	a.  Federal social security; or
53	b.  Any pension, retirement, or benefit plan of an
54	employee.
55	(d)  Failure for one pay period to pay, due to lack of
56	funds:
57	1.  Wages and salaries owed to employees; or
58	2.  Retirement benefits owed to former employees.
59	(e)  An unreserved or total fund balance or retained
60	earnings deficit, or unrestricted or total net assets deficit,
61	as reported on the balance sheet or statement of net assets on
62	the general purpose or fund financial statements, for which
63	sufficient resources of the local governmental entity, as
64	reported on the balance sheet or statement of net assets on the
65	general purpose or fund financial statements, are not available
66	to cover the deficit. Resources available to cover reported
67	deficits include net assets that are not otherwise restricted by
68	federal, state, or local laws, bond covenants, contractual
69	agreements, or other legal constraints. Fixed or capital assets,
70	the disposal of which would impair the ability of a local
71	governmental entity to carry out its functions, are not
72	considered resources available to cover reported deficits.
73	(2)  A local governmental entity shall notify the Governor
74	and the Legislative Auditing Committee, a charter school shall
75	notify the charter school sponsor and the Legislative Auditing
76	Committee, a charter technical career center shall notify the
77	charter technical career center sponsor and the Legislative
78	Auditing Committee, and a district school board shall notify the
79	Commissioner of Education and the Legislative Auditing
80	Committee, when one or more of the conditions specified in
81	subsection (1) have occurred or will occur if action is not
82	taken to assist the local governmental entity, charter school,
83	charter technical career center, or district school board. In
84	addition, any state agency must, within 30 days after a
85	determination that one or more of the conditions specified in
86	subsection (1) have occurred or will occur if action is not
87	taken to assist the local governmental entity, charter school,
88	charter technical career center, or district school board,
89	notify the Governor, charter school sponsor, charter technical
90	career center sponsor, or the Commissioner of Education, as
91	appropriate, and the Legislative Auditing Committee.
92	(4)(a)  Upon notification that one or more of the
93	conditions in subsection (1) exist, the charter school sponsor
94	or the sponsor's designee and the Commissioner of Education
95	shall contact the charter school governing body to determine
96	what actions have been taken by the charter school governing
97	body to resolve the condition. If one or more of the conditions
98	in paragraphs (1)(a)-(d) exist, the Commissioner of Education
99	may charter school sponsor has the authority to require and
100	approve a financial recovery plan, to be prepared by the charter
101	school governing body, prescribing actions that will cause the
102	charter school to no longer be subject to this section. The
103	Department of Education shall establish guidelines for
104	developing such plans.
105	(b)  Upon notification that one or more of the conditions
106	in subsection (1) exist, the charter technical career center
107	sponsor or the sponsor's designee and the Commissioner of
108	Education shall contact the charter technical career center
109	governing body to determine what actions have been taken by the
110	charter technical career center governing body to resolve the
111	condition. If one or more of the conditions in paragraphs
112	(1)(a)-(d) exist, the Commissioner of Education may require and
113	approve a financial recovery plan, to be prepared by the charter
114	technical career center governing body, prescribing actions that
115	will cause the charter technical career center to no longer be
116	subject to this section.
117	(c)  The Commissioner of Education shall determine if the
118	charter school or charter technical career center needs a
119	financial recovery plan to resolve a condition in paragraphs
120	(1)(a)-(d). If the Commissioner of Education determines that a
121	financial recovery plan is needed, the charter school or charter
122	technical career center is considered to be in a state of
123	financial emergency.
124
125	The Department of Education, with the involvement of sponsors,
126	charter schools, and charter technical career centers, shall
127	establish guidelines for developing such plans.
128	Section 5.  Section 218.504, Florida Statutes, is amended
129	to read:
130	218.504  Cessation of state action.--The Governor or the
131	Commissioner of Education, as appropriate, has the authority to
132	terminate all state actions pursuant to ss. 218.50-218.504.
133	Cessation of state action must not occur until the Governor or
134	the Commissioner of Education, as appropriate, has determined
135	that:
136	(1)  The local governmental entity, charter school, charter
137	technical career center, or district school board:
138	(a)  Has established and is operating an effective
139	financial accounting and reporting system.
140	(b)  Has resolved the conditions outlined in s. 218.503(1).
141	(2)  None of the conditions outlined in s. 218.503(1)
142	exists.
143	Section 6.  Paragraph (b) of subsection (5), paragraphs
144	(a), (b), and (d) of subsection (6), paragraphs (a) and (b) of
145	subsection (7), paragraph (d) of subsection (8), paragraphs (g)
146	through (q) of subsection (9), paragraphs (a) and (h) of
147	subsection (10), paragraphs (b) and (c) of subsection (17),
148	paragraph (e) of subsection (18), paragraph (a) of subsection
149	(20), and subsections (21) and (23) of section 1002.33, Florida
150	Statutes, are amended, present subsection (24) is renumbered as
151	subsection (26), and new subsections (24) and (25) are added to
152	that section, to read:
153	1002.33  Charter schools.--
154	(5)  SPONSOR; DUTIES.--
155	(b)  Sponsor duties.--
156	1.a.  The sponsor shall monitor and review the charter
157	school in its progress toward the goals established in the
158	charter.
159	b.  The sponsor shall monitor the revenues and expenditures
160	of the charter school and perform the duties provided for in s.
161	1002.345.
162	c.  The sponsor may approve a charter for a charter school
163	before the applicant has secured space, equipment, or personnel,
164	if the applicant indicates approval is necessary for it to raise
165	working funds.
166	d.  The sponsor's policies shall not apply to a charter
167	school unless mutually agreed to by both the sponsor and the
168	charter school.
169	e.  The sponsor shall ensure that the charter is innovative
170	and consistent with the state education goals established by s.
171	1000.03(5).
172	f.  The sponsor shall ensure that the charter school
173	participates in the state's education accountability system. If
174	a charter school falls short of performance measures included in
175	the approved charter, the sponsor shall report such shortcomings
176	to the Department of Education.
177	g.  The sponsor shall not be liable for civil damages under
178	state law for personal injury, property damage, or death
179	resulting from an act or omission of an officer, employee,
180	agent, or governing body of the charter school.
181	h.  The sponsor shall not be liable for civil damages under
182	state law for any employment actions taken by an officer,
183	employee, agent, or governing body of the charter school.
184	i.  The sponsor's duties to monitor the charter school
185	shall not constitute the basis for a private cause of action.
186	j.  The sponsor shall not impose additional reporting
187	requirements on a charter school without providing reasonable
188	and specific justification in writing to the charter school.
189	2.  Immunity for the sponsor of a charter school under
190	subparagraph 1. applies only with respect to acts or omissions
191	not under the sponsor's direct authority as described in this
192	section.
193	3.  Nothing contained in this paragraph shall be considered
194	a waiver of sovereign immunity by a district school board.
195	4.  A community college may work with the school district
196	or school districts in its designated service area to develop
197	charter schools that offer secondary education. These charter
198	schools must include an option for students to receive an
199	associate degree upon high school graduation. District school
200	boards shall cooperate with and assist the community college on
201	the charter application. Community college applications for
202	charter schools are not subject to the time deadlines outlined
203	in subsection (6) and may be approved by the district school
204	board at any time during the year. Community colleges shall not
205	report FTE for any students who receive FTE funding through the
206	Florida Education Finance Program.
207	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
208	applications are subject to the following requirements:
209	(a)  A person or entity wishing to open a charter school
210	shall prepare and submit an application on a form developed by
211	the Department of Education, which that:
212	1.  Demonstrates how the school will use the guiding
213	principles and meet the statutorily defined purpose of a charter
214	school.
215	2.  Provides a detailed curriculum plan that illustrates
216	how students will be provided services to attain the Sunshine
217	State Standards.
218	3.  Contains goals and objectives for improving student
219	learning and measuring that improvement. These goals and
220	objectives must indicate how much academic improvement students
221	are expected to show each year, how success will be evaluated,
222	and the specific results to be attained through instruction.
223	4.  Describes the reading curriculum and differentiated
224	strategies that will be used for students reading at grade level
225	or higher and a separate curriculum and strategies for students
226	who are reading below grade level. A sponsor shall deny a
227	charter if the school does not propose a reading curriculum that
228	is consistent with effective teaching strategies that are
229	grounded in scientifically based reading research.
230	5.  Contains an annual financial plan for each year
231	requested by the charter for operation of the school for up to 5
232	years. This plan must contain anticipated fund balances based on
233	revenue projections, a spending plan based on projected revenues
234	and expenses, and a description of controls that will safeguard
235	finances and projected enrollment trends.
236	(b)  A sponsor shall receive and review all applications
237	for a charter school using an evaluation instrument developed by
238	the Department of Education. Beginning with the 2007-2008 school
239	year, a sponsor shall receive and consider charter school
240	applications received on or before August 1 of each calendar
241	year for charter schools to be opened at the beginning of the
242	school district's next school year, or to be opened at a time
243	agreed to by the applicant and the sponsor. A sponsor may
244	receive applications later than this date if it chooses. A
245	sponsor may not charge an applicant for a charter any fee for
246	the processing or consideration of an application, and a sponsor
247	may not base its consideration or approval of an application
248	upon the promise of future payment of any kind.
249	1.  In order to facilitate an accurate budget projection
250	process, a sponsor shall be held harmless for FTE students who
251	are not included in the FTE projection due to approval of
252	charter school applications after the FTE projection deadline.
253	In a further effort to facilitate an accurate budget projection,
254	within 15 calendar days after receipt of a charter school
255	application, a sponsor shall report to the Department of
256	Education the name of the applicant entity, the proposed charter
257	school location, and its projected FTE.
258	2.  In order to ensure fiscal responsibility, an
259	application for a charter school shall include a full accounting
260	of expected assets, a projection of expected sources and amounts
261	of income, including income derived from projected student
262	enrollments and from community support, and an expense
263	projection that includes full accounting of the costs of
264	operation, including start-up costs.
265	3.  A sponsor shall by a majority vote approve or deny an
266	application no later than 60 calendar days after the application
267	is received, unless the sponsor and the applicant mutually agree
268	in writing to temporarily postpone the vote to a specific date,
269	at which time the sponsor shall by a majority vote approve or
270	deny the application. If the sponsor fails to act on the
271	application, an applicant may appeal to the State Board of
272	Education as provided in paragraph (c). If an application is
273	denied, the sponsor shall, within 10 calendar days, articulate
274	in writing the specific reasons, based upon good cause,
275	supporting its denial of the charter application and shall
276	provide the letter of denial and supporting documentation to the
277	applicant and to the Department of Education supporting those
278	reasons.
279	4.  For budget projection purposes, the sponsor shall
280	report to the Department of Education the approval or denial of
281	a charter application within 10 calendar days after such
282	approval or denial. In the event of approval, the report to the
283	Department of Education shall include the final projected FTE
284	for the approved charter school.
285	5.  Upon approval of a charter application, the initial
286	startup shall commence with the beginning of the public school
287	calendar for the district in which the charter is granted unless
288	the sponsor allows a waiver of this provision for good cause.
289	(d)  For charter school applications in school districts
290	that have not been granted exclusive authority to sponsor
291	charter schools pursuant to s. 1002.335(5), the right to appeal
292	an application denial under paragraph (c) shall be contingent on
293	the applicant having submitted the same or a substantially
294	similar application to the district school board and the Florida
295	Schools of Excellence Commission or one of its cosponsors. Any
296	such applicant whose application is denied by the commission or
297	one of its cosponsors and subsequent to its denial by the
298	district school board may exercise its right to appeal the
299	district school board's denial under paragraph (c) within 30
300	days after receipt of the commission's or cosponsor's denial or
301	failure to act on the application. However, the applicant
302	forfeits its right to appeal under paragraph (c) if it fails to
303	submit its application to the commission or one of its
304	cosponsors by August 1 of the school year immediately following
305	the district school board's denial of the application.
306	(7)  CHARTER.--The major issues involving the operation of
307	a charter school shall be considered in advance and written into
308	the charter. The charter shall be signed by the governing body
309	of the charter school and the sponsor, following a public
310	hearing to ensure community input.
311	(a)  The charter shall address, and criteria for approval
312	of the charter shall be based on:
313	1.  The school's mission, the students to be served, and
314	the ages and grades to be included.
315	2.  The focus of the curriculum, the instructional methods
316	to be used, any distinctive instructional techniques to be
317	employed, and identification and acquisition of appropriate
318	technologies needed to improve educational and administrative
319	performance which include a means for promoting safe, ethical,
320	and appropriate uses of technology which comply with legal and
321	professional standards. The charter shall ensure that reading is
322	a primary focus of the curriculum and that resources are
323	provided to identify and provide specialized instruction for
324	students who are reading below grade level. The curriculum and
325	instructional strategies for reading must be consistent with the
326	Sunshine State Standards and grounded in scientifically based
327	reading research.
328	3.  The current incoming baseline standard of student
329	academic achievement, the outcomes to be achieved, and the
330	method of measurement that will be used. The criteria listed in
331	this subparagraph shall include a detailed description for each
332	of the following:
333	a.  How the baseline student academic achievement levels
334	and prior rates of academic progress will be established.
335	b.  How these baseline rates will be compared to rates of
336	academic progress achieved by these same students while
337	attending the charter school.
338	c.  To the extent possible, how these rates of progress
339	will be evaluated and compared with rates of progress of other
340	closely comparable student populations.
341
342	The district school board is required to provide academic
343	student performance data to charter schools for each of their
344	students coming from the district school system, as well as
345	rates of academic progress of comparable student populations in
346	the district school system.
347	4.  The methods used to identify the educational strengths
348	and needs of students and how well educational goals and
349	performance standards are met by students attending the charter
350	school. Included in the methods is a means for the charter
351	school to ensure accountability to its constituents by analyzing
352	student performance data and by evaluating the effectiveness and
353	efficiency of its major educational programs. Students in
354	charter schools shall, at a minimum, participate in the
355	statewide assessment program created under s. 1008.22.
356	5.  In secondary charter schools, a method for determining
357	that a student has satisfied the requirements for graduation in
358	s. 1003.43.
359	6.  A method for resolving conflicts between the governing
360	body of the charter school and the sponsor.
361	7.  The admissions procedures and dismissal procedures,
362	including the school's code of student conduct.
363	8.  The ways by which the school will achieve a
364	racial/ethnic balance reflective of the community it serves or
365	within the racial/ethnic range of other public schools in the
366	same school district.
367	9.  The financial and administrative management of the
368	school, including a reasonable demonstration of the professional
369	experience or competence of those individuals or organizations
370	applying to operate the charter school or those hired or
371	retained to perform such professional services and the
372	description of clearly delineated responsibilities and the
373	policies and practices needed to effectively manage the charter
374	school. A description of internal audit procedures and
375	establishment of controls to ensure that financial resources are
376	properly managed must be included. Both public sector and
377	private sector professional experience shall be equally valid in
378	such a consideration.
379	10.  The asset and liability projections required in the
380	application which are incorporated into the charter and which
381	shall be compared with information provided in the annual report
382	of the charter school. The charter shall ensure that, if a
383	charter school internal audit or annual financial audit reveals
384	a state of financial emergency as defined in s. 218.503 or
385	deficit financial position, the auditors are required to notify
386	the charter school governing board, the sponsor, and the
387	Department of Education. The internal auditor shall report such
388	findings in the form of an exit interview to the principal or
389	the principal administrator of the charter school and the chair
390	of the governing board within 7 working days after finding the
391	state of financial emergency or deficit position. A final report
392	shall be provided to the entire governing board, the sponsor,
393	and the Department of Education within 14 working days after the
394	exit interview. When a charter school is in a state of financial
395	emergency, the charter school shall file a detailed financial
396	recovery plan with the sponsor. The department, with the
397	involvement of both sponsors and charter schools, shall
398	establish guidelines for developing such plans.
399	11.  A description of procedures that identify various
400	risks and provide for a comprehensive approach to reduce the
401	impact of losses; plans to ensure the safety and security of
402	students and staff; plans to identify, minimize, and protect
403	others from violent or disruptive student behavior; and the
404	manner in which the school will be insured, including whether or
405	not the school will be required to have liability insurance,
406	and, if so, the terms and conditions thereof and the amounts of
407	coverage.
408	12.  The term of the charter which shall provide for
409	cancellation of the charter if insufficient progress has been
410	made in attaining the student achievement objectives of the
411	charter and if it is not likely that such objectives can be
412	achieved before expiration of the charter. The initial term of a
413	charter shall be for 4 or 5 years. In order to facilitate access
414	to long-term financial resources for charter school
415	construction, charter schools that are operated by a
416	municipality or other public entity as provided by law are
417	eligible for up to a 15-year charter, subject to approval by the
418	district school board. A charter lab school is eligible for a
419	charter for a term of up to 15 years. In addition, to facilitate
420	access to long-term financial resources for charter school
421	construction, charter schools that are operated by a private,
422	not-for-profit, s. 501(c)(3) status corporation are eligible for
423	up to a 15-year charter, subject to approval by the district
424	school board. Such long-term charters remain subject to annual
425	review and may be terminated during the term of the charter, but
426	only according to the provisions set forth in subsection (8).
427	13.  The facilities to be used and their location.
428	14.  The qualifications to be required of the teachers and
429	the potential strategies used to recruit, hire, train, and
430	retain qualified staff to achieve best value.
431	15.  The governance structure of the school, including the
432	status of the charter school as a public or private employer as
433	required in paragraph (12)(i).
434	16.  A timetable for implementing the charter which
435	addresses the implementation of each element thereof and the
436	date by which the charter shall be awarded in order to meet this
437	timetable.
438	17.  In the case of an existing public school being
439	converted to charter status, alternative arrangements for
440	current students who choose not to attend the charter school and
441	for current teachers who choose not to teach in the charter
442	school after conversion in accordance with the existing
443	collective bargaining agreement or district school board rule in
444	the absence of a collective bargaining agreement. However,
445	alternative arrangements shall not be required for current
446	teachers who choose not to teach in a charter lab school, except
447	as authorized by the employment policies of the state university
448	which grants the charter to the lab school.
449	18.  Full disclosure of the identity of all relatives
450	employed by the charter school who are related to the charter
451	school owner, president, chair of the governing board of
452	directors, superintendent, governing board member, principal,
453	assistant principal, or any other person employed by the charter
454	school having equivalent decisionmaking authority. For the
455	purpose of this subparagraph, the term "relative" means father,
456	mother, son, daughter, brother, sister, husband, wife, father-
457	in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-
458	law, sister-in-law, stepfather, stepmother, stepson,
459	stepdaughter, stepbrother, stepsister, half brother, or half
460	sister.
461	(b)1.  A charter may be renewed if provided that a program
462	review demonstrates that the criteria in paragraph (a) have been
463	successfully accomplished and that none of the grounds for
464	nonrenewal established by paragraph (8)(a) has been documented.
465	In order to facilitate long-term financing for charter school
466	construction, a charter school that has operated schools
467	operating for a minimum of 3 years, that has received a school
468	grade of at least a "C" pursuant to s. 1008.34 during the
469	previous 3 years, and that demonstrates demonstrating exemplary
470	academic programming and fiscal management must be offered are
471	eligible for a 15-year charter renewal. Such long-term charter
472	is subject to annual review and may be terminated during the
473	term of the charter pursuant to subsection (8).
474	2.  The 15-year charter renewal that may be granted
475	pursuant to subparagraph 1. shall be granted to a charter school
476	that has received a school grade of "A" or "B" pursuant to s.
477	1008.34 in 3 of the past 4 years and is not in a state of
478	financial emergency or deficit position as defined by this
479	section. Such long-term charter is subject to annual review and
480	may be terminated during the term of the charter pursuant to
481	subsection (8).
482	(8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
483	(d)  A charter may be terminated immediately if the sponsor
484	determines that good cause has been shown or if the health,
485	safety, or welfare of the students is threatened. The sponsor's
486	determination is not subject to an informal hearing under
487	paragraph (b) or pursuant to chapter 120. The sponsor shall
488	notify in writing the charter school's governing body, the
489	charter school principal, and the department if a charter is
490	immediately terminated. The sponsor shall clearly identify the
491	specific issues that resulted in the immediate termination and
492	provide evidence of prior notification of issues resulting in
493	the immediate termination when appropriate. The school district
494	in which the charter school is located shall assume operation of
495	the school under these circumstances. The charter school's
496	governing board may, within 30 days after receiving the
497	sponsor's decision to terminate the charter, appeal the decision
498	pursuant to the procedure established in subsection (6).
499	(9)  CHARTER SCHOOL REQUIREMENTS.--
500	(g)  A charter school shall provide for an annual financial
501	audit in accordance with s. 218.39. Financial audits that reveal
502	a state of financial emergency as defined in s. 218.503 and are
503	conducted by a certified public accountant or auditor in
504	accordance with s. 218.39 shall be provided to the governing
505	body of the charter school within 7 working days after finding
506	that a state of financial emergency exists. When a charter
507	school is found to be in a state of financial emergency by a
508	certified public accountant or auditor, the charter school must
509	file a detailed financial recovery plan with the sponsor within
510	30 days after receipt of the audit.
511	(g)(h)  In order to provide financial information that is
512	comparable to that reported for other public schools, charter
513	schools are to maintain all financial records which constitute
514	their accounting system:
515	1.  In accordance with the accounts and codes prescribed in
516	the most recent issuance of the publication titled "Financial
517	and Program Cost Accounting and Reporting for Florida Schools";
518	or
519	2.  At the discretion of the charter school governing
520	board, a charter school may elect to follow generally accepted
521	accounting standards for not-for-profit organizations, but must
522	reformat this information for reporting according to this
523	paragraph.
524
525	Charter schools shall provide annual financial report and
526	program cost report information in the state-required formats
527	for inclusion in district reporting in compliance with s.
528	1011.60(1). Charter schools that are operated by a municipality
529	or are a component unit of a parent nonprofit organization may
530	use the accounting system of the municipality or the parent but
531	must reformat this information for reporting according to this
532	paragraph. A charter school shall provide quarterly financial
533	statements to the sponsor, except that such statements shall be
534	provided monthly if a charter school is subject to corrective
535	action plan under s. 1002.345 or a financial recovery plan under
536	s. 218.503.
537	(h)(i)  The governing board of the charter school shall
538	annually adopt and maintain an operating budget.
539	(i)(j)  The governing body of the charter school shall
540	exercise continuing oversight over charter school operations.
541	(j)(k)  The governing body of the charter school shall be
542	responsible for:
543	1.  Ensuring that the charter school has retained the
544	services of a certified public accountant or auditor for the
545	annual financial audit, pursuant to s. 1002.345(2) paragraph
546	(g), who shall submit the report to the governing body.
547	2.  Reviewing and approving the audit report, including
548	audit findings and recommendations for the financial recovery
549	plan.
550	3.a.  Performing the duties provided for in s. 1002.345,
551	including monitoring a corrective action plan.
552	b.  Monitoring a financial recovery plan in order to ensure
553	compliance.
554	4.  Participating in governance training approved by the
555	department that must include government in the sunshine,
556	conflicts of interest, ethics, and financial responsibility.
557	(k)(l)  The governing body of the charter school shall
558	report its progress annually to its sponsor, which shall forward
559	the report to the Commissioner of Education at the same time as
560	other annual school accountability reports. The Department of
561	Education shall develop a uniform, online annual accountability
562	report format to be completed by charter schools. This report
563	shall be easy to utilize and contain demographic information,
564	student performance data, and financial accountability
565	information. A charter school may directly access, complete, and
566	correct school data and information in the online accountability
567	report. The sponsor shall review the report before final
568	submission to shall not be required to provide information and
569	data that is duplicative and already in the possession of the
570	department. The Department of Education shall include in its
571	compilation a notation if a school failed to file its report by
572	the deadline established by the department. The report shall
573	include at least the following components:
574	1.  Student achievement performance data, including the
575	information required for the annual school report and the
576	education accountability system governed by ss. 1008.31 and
577	1008.345. Charter schools are subject to the same accountability
578	requirements as other public schools, including reports of
579	student achievement information that links baseline student data
580	to the school's performance projections identified in the
581	charter. The charter school shall identify reasons for any
582	difference between projected and actual student performance.
583	2.  Financial status of the charter school which must
584	include revenues and expenditures at a level of detail that
585	allows for analysis of the school's ability to meet financial
586	obligations and timely repayment of debt.
587	3.  Documentation of the facilities in current use and any
588	planned facilities for use by the charter school for instruction
589	of students, administrative functions, or investment purposes.
590	4.  Descriptive information about the charter school's
591	personnel, including salary and benefit levels of charter school
592	employees, the proportion of instructional personnel who hold
593	professional or temporary certificates, and the proportion of
594	instructional personnel teaching in-field or out-of-field.
595	(l)(m)  A charter school shall not levy taxes or issue
596	bonds secured by tax revenues.
597	(m)(n)  A charter school shall provide instruction for at
598	least the number of days required by law for other public
599	schools, and may provide instruction for additional days.
600	(n)(o)  The director and a representative of the governing
601	body of a charter school that has received a school grade of "D"
602	under s. 1008.34(2) shall appear before the sponsor or the
603	sponsor's staff at least once a year to present information
604	concerning each contract component having noted deficiencies.
605	The sponsor shall communicate at the meeting, and in writing to
606	the director, the services provided to the school to help the
607	school address its deficiencies.
608	(o)(p)  Upon notification that a charter school receives a
609	school grade of "D" for 2 consecutive years or a school grade of
610	"F" under s. 1008.34(2), the charter school sponsor or the
611	sponsor's staff shall require the director and a representative
612	of the governing body to submit to the sponsor for approval a
613	school improvement plan to raise student achievement and to
614	implement the plan. The sponsor has the authority to approve a
615	school improvement plan that the charter school will implement
616	in the following school year. The sponsor may also consider the
617	State Board of Education's recommended action pursuant to s.
618	1008.33(1) as part of the school improvement plan. The
619	Department of Education shall offer technical assistance and
620	training to the charter school and its governing body and
621	establish guidelines for developing, submitting, and approving
622	such plans.
623	1.  If the charter school fails to improve its student
624	performance from the year immediately prior to the
625	implementation of the school improvement plan, the sponsor shall
626	place the charter school on probation and shall require the
627	charter school governing body to take one of the following
628	corrective actions:
629	a.  Contract for the educational services of the charter
630	school;
631	b.  Reorganize the school at the end of the school year
632	under a new director or principal who is authorized to hire new
633	staff and implement a plan that addresses the causes of
634	inadequate progress; or
635	c.  Reconstitute the charter school.
636	2.  A charter school that is placed on probation shall
637	continue the corrective actions required under subparagraph 1.
638	until the charter school improves its student performance from
639	the year prior to the implementation of the school improvement
640	plan.
641	3.  Notwithstanding any provision of this paragraph, the
642	sponsor may terminate the charter at any time pursuant to the
643	provisions of subsection (8).
644	(p)(q)  The director and a representative of the governing
645	body of a graded charter school that has submitted a school
646	improvement plan or has been placed on probation under paragraph
647	(o) (p) shall appear before the sponsor or the sponsor's staff
648	at least once a year to present information regarding the
649	corrective strategies that are being implemented by the school
650	pursuant to the school improvement plan. The sponsor shall
651	communicate at the meeting, and in writing to the director, the
652	services provided to the school to help the school address its
653	deficiencies.
654	(10)  ELIGIBLE STUDENTS.--
655	(a)  A charter school shall be open to any student covered
656	in an interdistrict agreement or residing in the school district
657	in which the charter school is located; however, in the case of
658	a charter lab school, the charter lab school shall be open to
659	any student eligible to attend the lab school as provided in s.
660	1002.32 or who resides in the school district in which the
661	charter lab school is located. Any eligible student shall be
662	allowed interdistrict transfer to attend a charter school when
663	based on good cause. Good cause shall include, but not be
664	limited to, geographic proximity to a charter school in a
665	neighboring school district.
666	(h)  The capacity of the charter school shall be determined
667	annually by the governing board, in conjunction with the
668	sponsor, of the charter school in consideration of the factors
669	identified in this subsection. The calculation under s. 1003.03
670	for class size compliance for charter schools shall be the
671	average for the applicable grade grouping at the school level
672	established at the October student membership survey of the
673	district in which the charter school is operated.
674	(17)  FUNDING.--Students enrolled in a charter school,
675	regardless of the sponsorship, shall be funded as if they are in
676	a basic program or a special program, the same as students
677	enrolled in other public schools in the school district. Funding
678	for a charter lab school shall be as provided in s. 1002.32.
679	(b)  The basis for the agreement for funding students
680	enrolled in a charter school shall be the sum of the school
681	district's operating funds from the Florida Education Finance
682	Program as provided in s. 1011.62 and the General Appropriations
683	Act, including gross state and local funds, discretionary
684	lottery funds, and funds from the school district's current
685	operating discretionary millage levy; divided by total funded
686	weighted full-time equivalent students in the school district;
687	multiplied by the weighted full-time equivalent students for the
688	charter school. Charter schools whose students or programs meet
689	the eligibility criteria in law shall be entitled to their
690	proportionate share of categorical program funds included in the
691	total funds available in the Florida Education Finance Program
692	by the Legislature, including transportation. Total funding for
693	each charter school shall be recalculated during the year to
694	reflect the revised calculations under the Florida Education
695	Finance Program by the state and the actual weighted full-time
696	equivalent students reported by the charter school during the
697	full-time equivalent student survey periods designated by the
698	Commissioner of Education. Florida Education Finance Program
699	funds for a charter school must be distributed to the charter
700	school by the district school board within 10 days after receipt
701	from the state.
702	(c)  If the sponsor district school board is providing
703	programs or services to students funded by federal funds, any
704	eligible students enrolled in charter schools in the school
705	district shall be provided federal funds for the same level of
706	service provided students in the schools operated by the
707	district school board. Pursuant to provisions of 20 U.S.C. 8061
708	s. 10306, all charter schools shall receive all federal funding
709	for which the school is otherwise eligible, including Title I
710	funding and funding under the Individuals with Disabilities
711	Education Act, not later than 5 months after the charter school
712	first opens and within 5 months after any subsequent expansion
713	of enrollment.
714	(18)  FACILITIES.--
715	(e)1.  If a district school board facility or property is
716	available because it is surplused surplus, marked for disposal,
717	or otherwise unused:,
718	a.  It shall be provided for a charter school's use on the
719	same basis as it is made available to other public schools in
720	the district. A charter school receiving property from the
721	school district under this subparagraph may not sell or dispose
722	of such property without written permission of the school
723	district.
724	b.  It shall first be offered for purchase or lease to
725	charter schools within the district to be used for educational
726	purposes for a period of 45 days following a district school
727	board's decision to sell or lease such property.
728	2. Similarly, For an existing public school converting to
729	charter status, no rental or leasing fee for the existing
730	facility or for the property normally inventoried to the
731	conversion school may be charged by the district school board to
732	the parents and teachers organizing the charter school. The
733	charter school shall agree to reasonable maintenance provisions
734	in order to maintain the facility in a manner similar to
735	district school board standards. The Public Education Capital
736	Outlay maintenance funds or any other maintenance funds
737	generated by the facility operated as a conversion school shall
738	remain with the conversion school.
739	(20)  SERVICES.--
740	(a)  A sponsor shall provide certain administrative and
741	educational services to charter schools. These services shall
742	include contract management services; full-time equivalent and
743	data reporting services; exceptional student education
744	administration services; services related to eligibility and
745	reporting duties required to ensure that school lunch services
746	under the federal lunch program, consistent with the needs of
747	the charter school, are provided by the school district at the
748	request of the charter school, that any funds due the charter
749	school under the federal lunch program be paid to the charter
750	school as soon as the charter school begins serving food under
751	the federal lunch program, and that the charter school is paid
752	at the same time and in the same manner under the federal lunch
753	program as other public schools serviced by the sponsor or
754	school district; test administration services, including payment
755	of the costs of state-required or district-required student
756	assessments; processing of teacher certificate data services;
757	and information services, including equal access to student
758	information systems that are used by public schools in the
759	district in which the charter school is located. Student
760	performance data for each student in a charter school,
761	including, but not limited to, FCAT scores, standardized test
762	scores, previous public school student report cards, and student
763	performance measures, shall be provided by the sponsor to a
764	charter school in the same manner provided to other public
765	schools in the district. A total administrative fee for the
766	provision of such services shall be calculated based upon up to
767	5 percent of the available funds defined in paragraph (17)(b)
768	for all students. However, a sponsor may only withhold up to a
769	5-percent administrative fee for enrollment for up to and
770	including 500 students. For charter schools with a population of
771	501 or more students, the difference between the total
772	administrative fee calculation and the amount of the
773	administrative fee withheld may only be used for capital outlay
774	purposes specified in s. 1013.62(2). Sponsors shall not charge
775	charter schools any additional fees or surcharges for
776	administrative and educational services in addition to the
777	maximum 5-percent administrative fee withheld pursuant to this
778	paragraph.
779	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--
780	(a)  The Department of Education shall provide information
781	to the public, directly and through sponsors, both on how to
782	form and operate a charter school and on how to enroll in
783	charter schools once they are created. This information shall
784	include a standard application format, charter format,
785	evaluation instrument, and charter renewal format which shall
786	include the information specified in subsection (7) and shall be
787	developed by consulting and negotiating with both school
788	districts, the Florida Schools of Excellence Commission, and
789	charter schools before implementation. These formats shall be
790	used as guidelines by charter school sponsors.
791	(b)1.  The Department of Education shall report student
792	assessment data pursuant to s. 1008.34(3)(b) which is reported
793	to schools that receive a school grade pursuant to s. 1008.34 or
794	student assessment data pursuant to s. 1008.341(3) which is
795	reported to alternative schools that receive a school
796	improvement rating pursuant to s. 1008.341 to each charter
797	school that:
798	a.  Does not receive a school grade pursuant to s. 1008.34
799	or a school improvement rating pursuant to s. 1008.341; and
800	b.  Serves at least 10 students who are tested on the
801	statewide assessment test pursuant to s. 1008.22.
802	2.  The charter school shall report the information in
803	subparagraph 1. to each parent of a student at the charter
804	school, the district in which the charter school is located, and
805	the governing board of the charter school. This paragraph does
806	not abrogate the provisions of s. 1002.22, relating to student
807	records, and the requirements of 20 U.S.C. s. 1232g, the Family
808	Educational Rights and Privacy Act.
809	3.a.  Pursuant to this paragraph, the Department of
810	Education shall compare the charter school student performance
811	data for each charter school in subparagraph 1. with the student
812	performance data in traditional public schools in the district
813	in which the charter school is located and other charter schools
814	in the state. For charter alternative schools, the department
815	shall compare the student performance data described in this
816	paragraph with all alternative schools in the state. The
817	comparative data shall be provided by the following grade
818	groupings:
819	(I)  Grades 3 through 5.
820	(II)  Grades 6 through 8.
821	(III)  Grades 9 through 11.
822	b.  Each charter school shall make the information in this
823	paragraph available to the public.
824	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
825	of the annual report required by paragraph (9)(k) (9)(l), the
826	Department of Education shall provide to the State Board of
827	Education, the Commissioner of Education, the Governor, the
828	President of the Senate, and the Speaker of the House of
829	Representatives an analysis and comparison of the overall
830	performance of charter school students, to include all students
831	whose scores are counted as part of the statewide assessment
832	program, versus comparable public school students in the
833	district as determined by the statewide assessment program
834	currently administered in the school district, and other
835	assessments administered pursuant to s. 1008.22(3).
836	(24)  RESTRICTION ON EMPLOYMENT OF RELATIVES.--
837	(a)  This subsection applies to charter school personnel in
838	a charter school operated by a private entity. Charter school
839	personnel in schools operated by a municipality or other public
840	entity are subject to s. 112.3135.
841	(b)  As used in this subsection, the term:
842	1.  "Charter school personnel" means a charter school
843	owner, president, chair of the governing board of directors,
844	superintendent, governing board member, principal, assistant
845	principal, or any other person employed by the charter school
846	having equivalent decisionmaking authority and in whom is vested
847	the authority, or to whom the authority has been delegated, to
848	appoint, employ, promote, or advance individuals or to recommend
849	individuals for appointment, employment, promotion, or
850	advancement in connection with employment in a charter school,
851	including the authority as a member of a governing board of a
852	charter school to vote on the appointment, employment,
853	promotion, or advancement of individuals.
854	2.  "Relative" means father, mother, son, daughter,
855	brother, sister, husband, wife, father-in-law, mother-in-law,
856	son-in-law, daughter-in-law, brother-in-law, sister-in-law,
857	stepfather, stepmother, stepson, stepdaughter, stepbrother,
858	stepsister, half brother, or half sister.
859	3.  "Supervise" means the appointment, employment,
860	promotion, or advancement of an individual or recommendation of
861	the appointment, employment, promotion, or advancement of an
862	individual.
863	(c)  Charter school personnel may not supervise a relative
864	in the charter school in which the personnel serve unless the
865	governing board requests and obtains a waiver of this
866	requirement from the Commissioner of Education or his or her
867	designee.
868	(25)  STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--
869	(a)  A member of a governing board of a charter school,
870	including a charter school operated by a private entity, is
871	subject to the provisions of ss. 112.313(2), (3), (7), (12), and
872	(15) and 112.3143(3).
873	(b)  A member of a governing board of a charter school
874	operated by a municipality or other public entity is subject to
875	the provisions of s. 112.3144, relating to the disclosure of
876	financial interests.
877	Section 7.  Subsection (5), paragraph (a) of subsection
878	(7), and paragraph (a) of subsection (11) of section 1002.335,
879	Florida Statutes, are amended to read:
880	1002.335  Florida Schools of Excellence Commission.--
881	(5)  CHARTERING AUTHORITY.--
882	(a)  A charter school applicant may submit an application
883	to the commission only if the school district in which the FSE
884	charter school is to be located has not retained exclusive
885	authority to authorize charter schools as provided in paragraph
886	(e). If a district school board has not retained exclusive
887	authority to authorize charter schools as provided in paragraph
888	(e), the district school board and the commission shall have
889	concurrent authority to authorize charter schools and FSE
890	charter schools, respectively, to be located within the
891	geographic boundaries of the school district. The district
892	school board shall monitor and oversee all charter schools
893	authorized by the district school board pursuant to s. 1002.33.
894	The commission shall monitor and oversee all FSE charter schools
895	sponsored by the commission pursuant to subsection (4).
896	(b)  Paragraph (e) may not be construed to eliminate the
897	ability of a district school board to authorize charter schools
898	pursuant to s. 1002.33. A district school board shall retain the
899	authority to reauthorize and to oversee any charter school that
900	it has authorized, except with respect to any charter school
901	that is converted to an FSE charter school under this section.
902	(c)  For fiscal year 2008-2009 and every 4 fiscal years
903	thereafter 2007-2008 and for each fiscal year thereafter, a
904	district school board may seek to retain exclusive authority to
905	authorize charter schools within the geographic boundaries of
906	the school district by presenting to the State Board of
907	Education, on or before March 1 of the fiscal year prior to that
908	for which the exclusive authority is to apply, a written
909	resolution adopted by the district school board indicating the
910	intent to seek retain exclusive authority to authorize charter
911	schools. A district school board may seek to retain the
912	exclusive authority to authorize charter schools by presenting
913	to the state board the written resolution on or before a date 60
914	days after establishment of the commission. The written
915	resolution shall be accompanied by a written description
916	addressing the elements described in paragraph (e). The district
917	school board shall provide a complete copy of the resolution,
918	including the description, to each charter school authorized by
919	the district school board on or before the date it submits the
920	resolution to the state board.
921	(d)  A party may challenge the grant of exclusive authority
922	made by the State Board of Education pursuant to paragraph (e)
923	by filing with the state board a notice of challenge within 30
924	days after the state board grants exclusive authority. The
925	notice shall be accompanied by a specific written description of
926	the basis for the challenge. The challenging party, at the time
927	of filing notice with the state board, shall provide a copy of
928	the notice of challenge to the district school board that has
929	been granted exclusive authority. The state board shall permit
930	the district school board the opportunity to appear and respond
931	in writing to the challenge. The state board shall make a
932	determination upon the challenge within 60 days after receiving
933	the notice of challenge.
934	(e)  The State Board of Education shall grant to a district
935	school board exclusive authority to authorize charter schools
936	within the geographic boundaries of the school district if the
937	state board determines, after adequate notice, in a public
938	hearing, and after receiving input from any charter school
939	authorized by the district school board, that the district
940	school board has provided fair and equitable treatment to its
941	charter schools during the 4 years prior to the district school
942	board's submission of the resolution described in paragraph (c).
943	The state board's review of the resolution shall, at a minimum,
944	include consideration of the following:
945	1.  Compliance with the provisions of s. 1002.33.
946	2.  Compliance with full and accurate accounting practices
947	and charges for central administrative overhead costs.
948	3.  Compliance with requirements allowing a charter school,
949	at its discretion, to purchase certain services or a combination
950	of services at actual cost to the district.
951	4.  The absence of a district school board moratorium
952	regarding charter schools or the absence of any districtwide
953	charter school enrollment limits.
954	5.  Compliance with valid orders of the state board.
955	6.  The provision of assistance to charter schools to meet
956	their facilities needs by including those needs in local bond
957	issues or otherwise providing available land and facilities that
958	are comparable to those provided to other public school students
959	in the same grade levels within the school district.
960	7.  The distribution to charter schools authorized by the
961	district school board of a pro rata share of federal and state
962	grants received by the district school board, except for any
963	grant received for a particular purpose which, by its express
964	terms, is intended to benefit a student population not able to
965	be served by, or a program not able to be offered at, a charter
966	school that did not receive a proportionate share of such grant
967	proceeds.
968	8.  The provision of adequate staff and other resources to
969	serve charter schools authorized by the district school board,
970	which services are provided by the district school board at a
971	cost to the charter schools that does not exceed their actual
972	cost to the district school board.
973	9.  The lack of a policy or practice of imposing individual
974	charter school enrollment limits, except as otherwise provided
975	by law.
976	10.  The provision of an adequate number of educational
977	choice programs to serve students exercising their rights to
978	transfer pursuant to the "No Child Left Behind Act of 2001,"
979	Pub. L. No. 107-110, and a history of charter school approval
980	that encourages chartering.
981	(f)  The decision of the State Board of Education to grant
982	or deny exclusive authority to a district school board pursuant
983	to paragraph (e) shall be effective for 4 fiscal years, shall
984	not be subject to the provisions of chapter 120, and shall be a
985	final action subject to judicial review by the district court of
986	appeal.
987	(g)  For district school boards that have no discernible
988	history of authorizing charter schools, the State Board of
989	Education may not grant exclusive authority unless the district
990	school board demonstrates that no approvable application has
991	come before the district school board.
992	(h)  A grant of exclusive authority by the State Board of
993	Education shall continue so long as a district school board
994	continues to comply with this section and has presented a
995	written resolution to the state board as set forth in paragraph
996	(c).
997	(h)(i)  Notwithstanding any other provision of this section
998	to 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	Section 8.  Subsections (4) and (5), paragraphs (d) and (f)
1050	of subsection (6), subsection (8), paragraph (c) of subsection
1051	(10), and subsection (13) of section 1002.34, Florida Statutes,
1052	are amended to read:
1053	1002.34  Charter technical career centers.--
1054	(4)  CHARTER.--A sponsor may designate centers as provided
1055	in this section. An application to establish a center may be
1056	submitted by a sponsor or another organization that is
1057	determined, by rule of the State Board of Education, to be
1058	appropriate. However, an independent school is not eligible for
1059	status as a center. The charter must be signed by the governing
1060	body of the center and the sponsor, and must be approved by the
1061	district school board and community college board of trustees in
1062	whose geographic region the facility is located. If a charter
1063	technical career center is established by the conversion to
1064	charter status of a public technical center formerly governed by
1065	a district school board, the charter status of that center takes
1066	precedence in any question of governance. The governance of the
1067	center or of any program within the center remains with its
1068	board of directors unless the board agrees to a change in
1069	governance or its charter is revoked as provided in subsection
1070	(15). Such a conversion charter technical career center is not
1071	affected by a change in the governance of public technical
1072	centers or of programs within other centers that are or have
1073	been governed by district school boards. A charter technical
1074	career center, or any program within such a center, that was
1075	governed by a district school board and transferred to a
1076	community college prior to the effective date of this act is not
1077	affected by this provision. An applicant who wishes to establish
1078	a center must submit to the district school board or community
1079	college board of trustees, or a consortium of one or more of
1080	each, an application on a form developed by the Department of
1081	Education that includes:
1082	(a)  The name of the proposed center.
1083	(b)  The proposed structure of the center, including a list
1084	of proposed members of the board of directors or a description
1085	of the qualifications for and method of their appointment or
1086	election.
1087	(c)  The workforce development goals of the center, the
1088	curriculum to be offered, and the outcomes and the methods of
1089	assessing the extent to which the outcomes are met.
1090	(d)  The admissions policy and criteria for evaluating the
1091	admission of students.
1092	(e)  A description of the staff responsibilities and the
1093	proposed qualifications of the teaching staff.
1094	(f)  A description of the procedures to be implemented to
1095	ensure significant involvement of representatives of business
1096	and industry in the operation of the center.
1097	(g)  A method for determining whether a student has
1098	satisfied the requirements for graduation specified in s.
1099	1003.43 and for completion of a postsecondary certificate or
1100	degree.
1101	(h)  A method for granting secondary and postsecondary
1102	diplomas, certificates, and degrees.
1103	(i)  A description of and address for the physical facility
1104	in which the center will be located.
1105	(j)  A method of resolving conflicts between the governing
1106	body of the center and the sponsor and between consortium
1107	members, if applicable.
1108	(k)  A method for reporting student data as required by law
1109	and rule.
1110	(l)  The identity of all relatives employed by the charter
1111	technical career center who are related to the center owner,
1112	president, chair of the governing board of directors,
1113	superintendent, governing board member, principal, assistant
1114	principal, or any other person employed by the center who has
1115	equivalent decisionmaking authority. As used in this paragraph,
1116	the term "relative" means father, mother, son, daughter,
1117	brother, sister, husband, wife, father-in-law, mother-in-law,
1118	son-in-law, daughter-in-law, brother-in-law, sister-in-law,
1119	stepfather, stepmother, stepson, stepdaughter, stepbrother,
1120	stepsister, half brother, or half sister.
1121	(m)(l)  Other information required by the district school
1122	board or community college board of trustees.
1123
1124	Students at a center must meet the same testing and academic
1125	performance standards as those established by law and rule for
1126	students at public schools and public technical centers. The
1127	students must also meet any additional assessment indicators
1128	that are included within the charter approved by the district
1129	school board or community college board of trustees.
1130	(5)  APPLICATION.--An application to establish a center
1131	must be submitted by February 1 of the year preceding the school
1132	year in which the center will begin operation. The sponsor must
1133	review the application using an evaluation instrument developed
1134	by the Department of Education and make a final decision on
1135	whether to approve the application and grant the charter by
1136	March 1, and may condition the granting of a charter on the
1137	center's taking certain actions or maintaining certain
1138	conditions. Such actions and conditions must be provided to the
1139	applicant in writing. The district school board or community
1140	college board of trustees is not required to issue a charter to
1141	any person.
1142	(6)  SPONSOR.--A district school board or community college
1143	board of trustees or a consortium of one or more of each may
1144	sponsor a center in the county in which the board has
1145	jurisdiction.
1146	(d)  The Department of Education shall offer or arrange for
1147	training and technical assistance to applicants in developing
1148	business plans and estimating costs and income. This assistance
1149	shall address estimating startup costs, projecting enrollment,
1150	and identifying the types and amounts of state and federal
1151	financial assistance the center will be eligible to receive. The
1152	training shall include instruction in accurate financial
1153	planning and good business practices may provide technical
1154	assistance to an applicant upon written request.
1155	(f)  The sponsor shall monitor and review the center's
1156	progress toward charter goals and shall monitor the center's
1157	revenues and expenditures. The sponsor shall perform the duties
1158	provided for in s. 1002.345.
1159	(8)  ELIGIBLE STUDENTS.--
1160	(a)  A center must be open to all students as space is
1161	available and may not discriminate in admissions policies or
1162	practices on the basis of an individual's physical disability or
1163	proficiency in English or on any other basis that would be
1164	unlawful if practiced by a public school or a community college.
1165	A center may establish reasonable criteria by which to evaluate
1166	prospective students, which criteria must be outlined in the
1167	charter.
1168	(b)  The calculation under s. 1003.03 for class size
1169	compliance for a center shall be the average for the applicable
1170	grade grouping at the school level established at the October
1171	student membership survey of the district in which the center is
1172	operated.
1173	(10)  EXEMPTION FROM STATUTES.--
1174	(c)  A center must comply with the antidiscrimination
1175	provisions of s. 1000.05 and the provisions of s. 1002.33(24)
1176	relating to the employment of relatives.
1177	(13)  BOARD OF DIRECTORS AUTHORITY.--The board of directors
1178	of a center may decide matters relating to the operation of the
1179	school, including budgeting, curriculum, and operating
1180	procedures, subject to the center's charter. The board of
1181	directors is responsible for performing the duties provided for
1182	in s. 1002.345, including monitoring the corrective action plan.
1183	The board of directors must comply with the provisions of s.
1184	1002.33 (25).
1185	Section 9.  Section 1002.345, Florida Statutes, is created
1186	to read:
1187	1002.345  Determination of financial weaknesses and
1188	financial emergencies for charter schools and charter technical
1189	career centers.--This section applies to charter schools
1190	operating pursuant to ss. 1002.33 and 1002.335, and to charter
1191	technical career centers operating pursuant to s. 1002.34.
1192	(1)  FINANCIAL WEAKNESS; REQUIREMENTS.--
1193	(a)  A charter school and a charter technical career center
1194	shall be subject to an expedited review by the sponsor when any
1195	one of the following conditions occurs:
1196	1.  An end-of-year financial deficit.
1197	2.  A substantial decline in student enrollment without a
1198	commensurate reduction in expenses.
1199	3.  Insufficient revenues to pay current operating
1200	expenses.
1201	4.  Insufficient revenues to pay long-term expenses.
1202	5.  Disproportionate administrative expenses.
1203	6.  Excessive debt.
1204	7.  Excessive expenditures.
1205	8.  Inadequate fund balances or reserves.
1206	9.  Failure to meet financial reporting requirements
1207	pursuant to s. 1002.33(9), s. 1002.335(7)(a)7., or s.
1208	1002.34(14).
1209	10.  Weak financial controls or other adverse financial
1210	conditions identified through an annual audit conducted pursuant
1211	to s. 218.39.
1212	11.  Negative financial findings cited in reports by the
1213	Auditor General or the Office of Program Policy Analysis and
1214	Government Accountability.
1215	(b)  A sponsor shall notify the governing board within 7
1216	working days when one or more of the conditions specified in
1217	paragraph (a) occur.
1218	(c)  The governing board and the sponsor shall develop a
1219	corrective action plan and file the plan with the Commissioner
1220	of Education within 30 working days. If the governing board and
1221	the sponsor are unable to agree on a corrective action plan, the
1222	Commissioner of Education shall determine the components of the
1223	plan. The governing board shall implement the plan.
1224	(d)  The governing board shall include the corrective
1225	action plan and the status of its implementation in the annual
1226	progress report to the sponsor that is required under s.
1227	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1228	(e)  If the governing board fails to implement the
1229	corrective action plan within 1 year, the State Board of
1230	Education shall prescribe any steps necessary for the charter
1231	school or the charter technical career center to comply with
1232	state requirements.
1233	(f)  The chair of the governing board shall annually appear
1234	before the State Board of Education and report on the
1235	implementation of the State Board of Education's requirements.
1236	(2)  FINANCIAL EMERGENCY; DEFICIT FUND BALANCE; DEFICIT NET
1237	ASSETS; REQUIREMENTS.--
1238	(a)  A charter school and a charter technical career center
1239	shall provide for a certified public accountant or auditor to
1240	conduct an annual financial audit in accordance with s. 218.39.
1241	(b)  The charter shall ensure that, if an annual financial
1242	audit of a charter school or charter technical career center
1243	reveals one or more of the conditions in s. 218.503(1) have
1244	occurred or will occur if action is not taken or if a charter
1245	school or charter technical career center has a deficit fund
1246	balance or deficit net assets, the auditor must notify the
1247	governing board of the charter school or charter technical
1248	career center, as appropriate, the sponsor, and the Commissioner
1249	of Education.
1250	(c)1.  When a financial audit conducted by a certified
1251	public accountant in accordance with s. 218.39 reveals that one
1252	or more of the conditions in s. 218.503(1) have occurred or will
1253	occur if action is not taken or when a deficit fund balance or
1254	deficit net assets exist, the auditor shall notify and provide
1255	the financial audit to the governing board of the charter school
1256	or charter technical career center, as appropriate, the sponsor,
1257	and the Commissioner of Education within 7 working days after
1258	the finding is made.
1259	2.  When the charter school or charter technical career
1260	center is found to be in a state of financial emergency pursuant
1261	to s. 218.503(4), the charter school or charter technical career
1262	center shall file a detailed financial recovery plan as provided
1263	for in s. 218.503 with the sponsor within 30 days after being
1264	notified by the Commissioner of Education that a financial
1265	recovery plan is needed.
1266	(d)  The sponsor shall file a copy of the financial
1267	recovery plan with the Commissioner of Education.
1268	(e)  The governing board shall include the financial
1269	recovery plan and the status of its implementation in the annual
1270	progress report to the sponsor which is required under s.
1271	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1272	(3)  REPORT.--The Commissioner of Education shall annually
1273	report to the State Board of Education each charter school and
1274	charter technical career center that is subject to a financial
1275	recovery plan or a corrective action plan under this section.
1276	(4)  RULES.--The State Board of Education shall adopt rules
1277	pursuant to ss. 120.536(1) and 120.54 for developing financial
1278	recovery and corrective action plans and establishing the
1279	criteria for defining each of the conditions in subsection (1).
1280	(5)  TECHNICAL ASSISTANCE.--The Department of Education
1281	shall provide technical assistance to charter schools, charter
1282	technical career centers, governing boards, and sponsors in
1283	developing financial recovery and corrective action plans.
1284	(6)  FAILURE TO CORRECT DEFICIENCIES.--The sponsor may
1285	choose not to renew or may terminate a charter if the charter
1286	school or charter technical career center fails to correct the
1287	deficiencies noted in the corrective action plan within 1 year
1288	or exhibits one or more financial emergency conditions as
1289	provided in s. 218.503(1)(a)-(d) for 2 consecutive years. This
1290	subsection is not intended to affect a sponsor's authority to
1291	terminate or not renew a charter pursuant to s. 1002.33(8).
1292	Section 10.  Paragraph (f) is added to subsection (2) of
1293	section 1013.62, Florida Statutes, to read:
1294	1013.62  Charter schools capital outlay funding.--
1295	(2)  A charter school's governing body may use charter
1296	school capital outlay funds for the following purposes:
1297	(f)  Any of the purposes set forth in s. 1011.71(2).
1298
1299	Conversion charter schools may use capital outlay funds received
1300	through the reduction in the administrative fee provided in s.
1301	1002.33(20) for renovation, repair, and maintenance of school
1302	facilities that are owned by the sponsor.
1303
1304	-----------------------------------------------------
1305	T I T L E  A M E N D M E N T
1306	Remove lines 9-59 and insert:
1307	financial emergency; requiring that the sponsor and Legislative
1308	Auditing Committee be notified of certain conditions; providing
1309	that the Commissioner of Education may require a financial
1310	recovery plan if certain conditions exist for a charter school
1311	or charter technical career center; amending s. 1002.33, F.S.;
1312	providing for duties of charter school sponsors and governing
1313	boards when charter schools and charter technical career centers
1314	experience a financial weakness or a financial emergency;
1315	specifying forms and evaluation instruments to be used by
1316	charter school applicants and sponsors; revising provisions
1317	relating to appeal of a charter school application denial;
1318	deleting the auditing requirements and financial emergency
1319	provisions for charter schools; requiring charter schools to
1320	disclose the identity of relatives of charter school personnel;
1321	revising provisions relating to charter school renewal terms;
1322	providing that immediate termination of a charter is exempt from
1323	requirements for an informal hearing or a hearing under ch. 120,
1324	F.S.; requiring charter schools to provide quarterly or monthly
1325	financial statements under specified circumstances; revising
1326	provisions relating to a charter school's annual report;
1327	revising provisions relating to student eligibility to attend a
1328	charter school; revising the calculation requirements for class
1329	size compliance by charter schools; providing requirements for
1330	distribution of funds to charter schools; providing priority to
1331	charter schools for the lease or purchase of surplused,
1332	disposed, or unused public school property and facilities;
1333	requiring a sponsor to provide additional services relating to
1334	school lunches under the federal lunch program; providing for
1335	the disclosure of the performance of charter schools that are
1336	not given a school grade or school improvement rating; providing
1337	reporting requirements; providing restrictions for the
1338	employment of relatives by charter school personnel; providing
1339	that members of a charter school governing board are subject to
1340	certain standards of conduct and financial disclosure; amending
1341	s. 1002.335, F.S., relating to the Florida Schools of Excellence
1342	Commission; revising provisions relating to exclusive authority
1343	to authorize charter schools; eliminating the requirement for
1344	district school boards to annually seek continued exclusivity
1345	from the State Board of Education; providing that a grant or
1346	denial of exclusivity shall be effective for 4 fiscal years;
1347	specifying additional components of cosponsor agreements;
1348	providing for application of performance disclosure requirements
1349	for charter schools that are not graded or rated; providing for
1350	application of restrictions on the employment of relatives and
1351	certain standards of conduct and financial disclosure; amending
1352	s. 1002.34, F.S.; providing additional duties for charter
1353	technical career centers, applicants, sponsors, and governing
1354	boards; requiring the Department of Education to offer or
1355	arrange training and assistance to applicants for a charter
1356	technical career center; revising the calculation requirements
1357	for class size compliance by charter technical career centers;
1358	providing for application of restrictions on the employment of
1359	relatives and certain standards of conduct and financial
1360	disclosure; creating s. 1002.345, F.S.; establishing criteria
1361	and requirements for charter schools and charter technical
1362	career centers that have financial weaknesses or are in a state
1363	of financial emergency; establishing requirements for charter
1364	schools, charter technical career centers, governing boards, and
1365	sponsors; requiring financial audits of charter schools and
1366	charter technical career centers; providing for corrective
1367	action and financial recovery plans; providing for duties of
1368	auditors, the Commissioner of Education, and the Department of
1369	Education; requiring the State Board of Education to adopt
1370	rules; providing grounds for termination or nonrenewal of a
1371	charter; amending s. 1013.62, F.S.; authorizing additional uses
1372	for charter school capital outlay funds; providing an

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