Florida Senate - 2008 SB 1652

By the Committee on Education Pre-K - 12

581-04012C-08 20081652__

A bill to be entitled

An act relating to charter schools; amending ss. 11.45,

218.50, and 218.501, F.S., relating to audit reports by

the Auditor General; conforming provisions related to

changes in the entities subject to a state of financial

emergency; amending ss. 218.503 and 218.504, F.S.;

providing that charter technical career centers are

subject to certain requirements in the event of a

financial emergency; requiring that the sponsor be

notified of certain conditions; providing for the

development of a financial recovery plan, which may be

approved by the Commissioner of Education; amending s.

1002.33, F.S.; providing for duties of charter school

sponsors and governing boards when charter schools and

charter technical career centers experience a financial

weakness or a financial emergency; specifying forms to be

used by charter school applicants and sponsors; requiring

applicant training and documentation; deleting the

auditing requirements and financial emergency provisions

for charter schools; requiring charters schools to

disclose the identity of relatives of charter school

personnel; providing for a limitation on funding;

providing for the disclosure of the performance of charter

schools that are not given a school grade or school

improvement rating; providing reporting requirements;

providing restrictions for the employment of relatives by

charter school personnel; providing that members of a

charter school governing board are subject to certain

standards of conduct specified in ss. 112.313 and

112.3143, F.S.; amending s. 1002.335, F.S.; eliminating

the requirement for district school boards to annually

seek continued exclusivity from the State Board of

Education; providing for challenges to the exclusivity of

district school boards; providing a rebuttable presumption

for district school boards that are granted exclusivity;

specifying additional components of cosponsor agreements;

amending s. 1002.34, F.S.; providing additional duties for

charter technical career centers, applicants, sponsors,

and governing boards; requiring the Department of

Education to offer or arrange training and assistance to

applicants for a charter technical career center;

requiring that an applicant participate in the training;

creating s. 1002.345, F.S.; establishing criteria and

requirements for charter schools and charter technical

career centers that have financial weaknesses or are in a

state of financial emergency; establishing requirements

for charter schools, charter technical career centers,

governing bodies, and sponsors; requiring financial audits

of charter schools and charter technical career centers;

providing for corrective action and financial recovery

plans; providing for duties of auditors, the Commissioner

of Education, and the Department of Education; requiring

the State Board of Education to adopt rules; providing

grounds for termination or nonrenewal of a charter;

providing an effective date.

Be It Enacted by the Legislature of the State of Florida:

Section 1. Paragraph (e) of subsection (7) and subsection

(8) of section 11.45, Florida Statutes, are amended to read:

11.45 Definitions; duties; authorities; reports; rules.--

(7) AUDITOR GENERAL REPORTING REQUIREMENTS.--

(e) The Auditor General shall notify the Governor or the

Commissioner of Education, as appropriate, and the Legislative

Auditing Committee of any audit report reviewed by the Auditor

General pursuant to paragraph (b) which contains a statement that

a local governmental entity, charter school, charter technical

career center, or district school board has met one or more of

the conditions specified in s. 218.503. If the Auditor General

requests a clarification regarding information included in an

audit report to determine whether a local governmental entity,

charter school, charter technical career center, or district

school board has met one or more of the conditions specified in

s. 218.503, the requested clarification must be provided within

45 days after the date of the request. If the local governmental

entity, charter school, charter technical career center, or

district school board does not comply with the Auditor General's

request, the Auditor General shall notify the Legislative

Auditing Committee. If, after obtaining the requested

clarification, the Auditor General determines that the local

governmental entity, charter school, charter technical career

center, or district school board has met one or more of the

conditions specified in s. 218.503, he or she shall notify the

Governor or the Commissioner of Education, as appropriate, and

the Legislative Auditing Committee.

(8) RULES OF THE AUDITOR GENERAL.--The Auditor General, in

consultation with the Board of Accountancy, shall adopt rules for

the form and conduct of all financial audits performed by

independent certified public accountants pursuant to ss. 215.981,

218.39, 1001.453, 1004.28, and 1004.70. The rules for audits of

local governmental entities, charter schools, charter school

technical career centers, and district school boards must

include, but are not limited to, requirements for the reporting

of information necessary to carry out the purposes of the Local

Governmental Entity, Charter School, Charter Technical Career

Center, and District School Board Financial Emergencies Act as

stated in s. 218.501.

Section 2. Section 218.50, Florida Statutes, is amended to

read:

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218.50 Short title.--Sections 218.50-218.504 may be cited

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as the "Local Governmental Entity, Charter School, Charter

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Technical Career Center, and District School Board Financial

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Emergencies Act."

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Section 3. Section 218.501, Florida Statutes, is amended to

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read:

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218.501 Purposes.--The purposes of ss. 218.50-218.504 are:

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(1) To promote the fiscal responsibility of local

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governmental entities, charter schools, charter technical career

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centers, and district school boards.

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(2) To assist local governmental entities, charter schools,

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charter technical career centers, and district school boards in

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providing essential services without interruption and in meeting

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their financial obligations.

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(3) To assist local governmental entities, charter schools,

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charter technical career centers, and district school boards

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through the improvement of local financial management procedures.

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Section 4. Subsections (2) and (4) of section 218.503,

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Florida Statutes, are amended to read:

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218.503 Determination of financial emergency.--

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(2) A local governmental entity shall notify the Governor

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and the Legislative Auditing Committee, a charter school shall

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notify the charter school sponsor and the Legislative Auditing

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Committee, a charter technical career center shall notify the

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charter technical career center sponsor and the Legislative

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Auditing Committee, and a district school board shall notify the

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Commissioner of Education and the Legislative Auditing Committee,

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when one or more of the conditions specified in subsection (1)

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have occurred or will occur if action is not taken to assist the

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local governmental entity, charter school, charter school

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technical career center, or district school board. In addition,

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any state agency must, within 30 days after a determination that

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one or more of the conditions specified in subsection (1) have

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occurred or will occur if action is not taken to assist the local

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governmental entity, charter school, or charter school technical

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career center, district school board, notify the Governor,

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charter school sponsor, charter school technical career center

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sponsor, or the Commissioner of Education, as appropriate, and

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the Legislative Auditing Committee.

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(4)(a) Upon notification that one or more of the conditions

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in subsection (1) exist, the charter school sponsor or the

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sponsor's designee and the Commissioner of Education shall

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contact the charter school governing body to determine what

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actions have been taken by the charter school governing body to

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resolve the condition. The Commissioner of Education charter

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school sponsor has the authority to require and approve a

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financial recovery plan, to be prepared by the charter school

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governing body, prescribing actions that will cause the charter

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school to no longer be subject to this section. The Department of

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Education shall establish guidelines for developing such plans.

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(b) Upon notification that one or more of the conditions in

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subsection (1) exist, the charter technical career center sponsor

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or the sponsor's designee and the Commissioner of Education shall

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contact the charter technical career center governing body to

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determine what actions have been taken by the charter technical

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career center governing body to resolve the condition. The

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Commissioner of Education may require and approve a financial

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recovery plan, to be prepared by the charter technical career

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center governing body, prescribing actions that will cause the

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charter technical career center to no longer be subject to this

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section.

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charter school or charter technical career center needs a

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financial recovery plan to resolve the condition. If the

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Commissioner of Education determines that a financial recovery

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plan is needed, the charter school or charter technical career

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center is considered to be in a state of financial emergency.

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The Department of Education, with the involvement of sponsors,

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charter schools, and charter technical career centers, shall

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establish guidelines for developing such plans.

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Section 5. Section 218.504, Florida Statutes, is amended to

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read:

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218.504 Cessation of state action.--The Governor or the

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Commissioner of Education, as appropriate, has the authority to

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terminate all state actions pursuant to ss. 218.50-218.504.

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Cessation of state action must not occur until the Governor or

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the Commissioner of Education, as appropriate, has determined

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that:

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(1) The local governmental entity, charter school, charter

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technical career center, or district school board:

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(a) Has established and is operating an effective financial

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accounting and reporting system.

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(b) Has resolved the conditions outlined in s. 218.503(1).

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(2) None of the conditions outlined in s. 218.503(1)

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exists.

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Section 6. Paragraph (b) of subsection (5), paragraphs (a),

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(b), and (g) of subsection (6), paragraph (a) of subsection (7),

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paragraphs (g) through (q) of subsection (9), and subsections

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(17) and (21) of section 1002.33, Florida Statutes, are amended,

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present subsection (24) of that section is redesignated as

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subsection (26), and a new subsection (24) and subsection (25)

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are added to that section, to read:

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1002.33 Charter schools.--

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(5) SPONSOR; DUTIES.--

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(b) Sponsor duties.--

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1.a. The sponsor shall monitor and review the charter

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school in its progress toward the goals established in the

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charter.

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b. The sponsor shall monitor the revenues and expenditures

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of the charter school and perform the duties provided for in s.

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1002.345.

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c. The sponsor may approve a charter for a charter school

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before the applicant has secured space, equipment, or personnel,

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if the applicant indicates approval is necessary for it to raise

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working funds.

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d. The sponsor's policies shall not apply to a charter

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school unless mutually agreed to by both the sponsor and the

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charter school.

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e. The sponsor shall ensure that the charter is innovative

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and consistent with the state education goals established by s.

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1000.03(5).

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f. The sponsor shall ensure that the charter school

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participates in the state's education accountability system. If a

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charter school falls short of performance measures included in

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the approved charter, the sponsor shall report such shortcomings

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to the Department of Education.

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g. The sponsor shall not be liable for civil damages under

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state law for personal injury, property damage, or death

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resulting from an act or omission of an officer, employee, agent,

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or governing body of the charter school.

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h. The sponsor shall not be liable for civil damages under

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state law for any employment actions taken by an officer,

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employee, agent, or governing body of the charter school.

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i. The sponsor's duties to monitor the charter school shall

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not constitute the basis for a private cause of action.

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j. The sponsor shall not impose additional reporting

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requirements on a charter school without providing reasonable and

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specific justification in writing to the charter school.

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2. Immunity for the sponsor of a charter school under

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subparagraph 1. applies only with respect to acts or omissions

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not under the sponsor's direct authority as described in this

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section.

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3. Nothing contained in this paragraph shall be considered

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a waiver of sovereign immunity by a district school board.

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4. A community college may work with the school district or

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school districts in its designated service area to develop

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charter schools that offer secondary education. These charter

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schools must include an option for students to receive an

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associate degree upon high school graduation. District school

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boards shall cooperate with and assist the community college on

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the charter application. Community college applications for

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charter schools are not subject to the time deadlines outlined in

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subsection (6) and may be approved by the district school board

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at any time during the year. Community colleges shall not report

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FTE for any students who receive FTE funding through the Florida

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Education Finance Program.

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(6) APPLICATION PROCESS AND REVIEW.--Charter school

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applications are subject to the following requirements:

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(a) A person or entity wishing to open a charter school

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shall prepare and submit an application on a form prepared by the

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Department of Education, in consultation with the Florida Schools

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of Excellence Commission, which that:

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1. Demonstrates how the school will use the guiding

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principles and meet the statutorily defined purpose of a charter

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school.

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2. Provides a detailed curriculum plan that illustrates how

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students will be provided services to attain the Sunshine State

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Standards.

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3. Contains goals and objectives for improving student

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learning and measuring that improvement. These goals and

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objectives must indicate how much academic improvement students

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are expected to show each year, how success will be evaluated,

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and the specific results to be attained through instruction.

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4. Describes the reading curriculum and differentiated

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strategies that will be used for students reading at grade level

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or higher and a separate curriculum and strategies for students

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who are reading below grade level. A sponsor shall deny a charter

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if the school does not propose a reading curriculum that is

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consistent with effective teaching strategies that are grounded

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in scientifically based reading research.

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5. Contains an annual financial plan for each year

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requested by the charter for operation of the school for up to 5

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years. This plan must contain anticipated fund balances based on

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revenue projections, a spending plan based on projected revenues

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and expenses, and a description of controls that will safeguard

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finances and projected enrollment trends.

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6. Documents that the applicant has participated in the

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training provided by the Department of Education.

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(b) A sponsor shall receive and review all applications for

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a charter school using an evaluation instrument developed by the

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Department of Education. Beginning with the 2007-2008 school

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year, a sponsor shall receive and consider charter school

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applications received on or before August 1 of each calendar year

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for charter schools to be opened at the beginning of the school

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district's next school year, or to be opened at a time agreed to

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by the applicant and the sponsor. A sponsor may receive

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applications later than this date if it chooses. A sponsor may

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not charge an applicant for a charter any fee for the processing

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or consideration of an application, and a sponsor may not base

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its consideration or approval of an application upon the promise

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of future payment of any kind.

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1. In order to facilitate an accurate budget projection

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process, a sponsor shall be held harmless for FTE students who

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are not included in the FTE projection due to approval of charter

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school applications after the FTE projection deadline. In a

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further effort to facilitate an accurate budget projection,

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within 15 calendar days after receipt of a charter school

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application, a sponsor shall report to the Department of

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Education the name of the applicant entity, the proposed charter

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school location, and its projected FTE.

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2. In order to ensure fiscal responsibility, an application

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for a charter school shall include a full accounting of expected

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assets, a projection of expected sources and amounts of income,

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including income derived from projected student enrollments and

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from community support, and an expense projection that includes

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full accounting of the costs of operation, including start-up

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costs.

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3. A sponsor shall by a majority vote approve or deny an

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application no later than 60 calendar days after the application

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is received, unless the sponsor and the applicant mutually agree

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in writing to temporarily postpone the vote to a specific date,

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at which time the sponsor shall by a majority vote approve or

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deny the application. If the sponsor fails to act on the

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application, an applicant may appeal to the State Board of

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Education as provided in paragraph (c). If an application is

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denied, the sponsor shall, within 10 calendar days, articulate in

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writing the specific reasons, based upon good cause, supporting

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its denial of the charter application and shall provide the

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letter of denial and supporting documentation to the applicant

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and to the Department of Education supporting those reasons.

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4. For budget projection purposes, the sponsor shall report

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to the Department of Education the approval or denial of a

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charter application within 10 calendar days after such approval

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or denial. In the event of approval, the report to the Department

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of Education shall include the final projected FTE for the

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approved charter school.

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5. Upon approval of a charter application, the initial

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startup shall commence with the beginning of the public school

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calendar for the district in which the charter is granted unless

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the sponsor allows a waiver of this provision for good cause.

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(g)1. The Department of Education shall offer or arrange

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for training and technical assistance to charter school

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applicants in developing business plans and estimating costs and

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income. This assistance shall address estimating startup costs,

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projecting enrollment, and identifying the types and amounts of

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state and federal financial assistance the charter school will be

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eligible to receive. The department may provide other technical

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assistance to an applicant upon written request.

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2. A charter school applicant must participate in the

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training provided by the Department of Education prior to filing

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an application. The training shall include instruction in

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accurate financial planning and good business practices.

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(7) CHARTER.--The major issues involving the operation of a

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charter school shall be considered in advance and written into

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the charter. The charter shall be signed by the governing body of

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the charter school and the sponsor, following a public hearing to

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ensure community input.

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(a) The charter shall address, and criteria for approval of

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the charter shall be based on:

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1. The school's mission, the students to be served, and the

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ages and grades to be included.

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2. The focus of the curriculum, the instructional methods

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to be used, any distinctive instructional techniques to be

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employed, and identification and acquisition of appropriate

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technologies needed to improve educational and administrative

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performance which include a means for promoting safe, ethical,

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and appropriate uses of technology which comply with legal and

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professional standards. The charter shall ensure that reading is

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a primary focus of the curriculum and that resources are provided

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to identify and provide specialized instruction for students who

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are reading below grade level. The curriculum and instructional

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strategies for reading must be consistent with the Sunshine State

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Standards and grounded in scientifically based reading research.

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3. The current incoming baseline standard of student

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academic achievement, the outcomes to be achieved, and the method

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of measurement that will be used. The criteria listed in this

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subparagraph shall include a detailed description for each of the

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following:

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a. How the baseline student academic achievement levels and

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prior rates of academic progress will be established.

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b. How these baseline rates will be compared to rates of

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academic progress achieved by these same students while attending

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the charter school.

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c. To the extent possible, how these rates of progress will

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be evaluated and compared with rates of progress of other closely

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comparable student populations.

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The district school board is required to provide academic student

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performance data to charter schools for each of their students

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coming from the district school system, as well as rates of

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academic progress of comparable student populations in the

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district school system.

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4. The methods used to identify the educational strengths

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and needs of students and how well educational goals and

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performance standards are met by students attending the charter

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school. Included in the methods is a means for the charter school

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to ensure accountability to its constituents by analyzing student

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performance data and by evaluating the effectiveness and

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efficiency of its major educational programs. Students in charter

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schools shall, at a minimum, participate in the statewide

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assessment program created under s. 1008.22.

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5. In secondary charter schools, a method for determining

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that a student has satisfied the requirements for graduation in

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s. 1003.43.

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6. A method for resolving conflicts between the governing

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body of the charter school and the sponsor.

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7. The admissions procedures and dismissal procedures,

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including the school's code of student conduct.

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8. The ways by which the school will achieve a

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racial/ethnic balance reflective of the community it serves or

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within the racial/ethnic range of other public schools in the

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same school district.

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9. The financial and administrative management of the

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school, including a reasonable demonstration of the professional

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experience or competence of those individuals or organizations

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applying to operate the charter school or those hired or retained

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to perform such professional services and the description of

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clearly delineated responsibilities and the policies and

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practices needed to effectively manage the charter school. A

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description of internal audit procedures and establishment of

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controls to ensure that financial resources are properly managed

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must be included. Both public sector and private sector

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professional experience shall be equally valid in such a

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consideration.

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10. The asset and liability projections required in the

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application which are incorporated into the charter and which

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shall be compared with information provided in the annual report

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of the charter school. The charter shall ensure that, if a

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charter school internal audit or annual financial audit reveals a

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state of financial emergency as defined in s. 218.503 or deficit

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financial position, the auditors are required to notify the

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charter school governing board, the sponsor, and the Department

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of Education. The internal auditor shall report such findings in

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the form of an exit interview to the principal or the principal

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administrator of the charter school and the chair of the

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governing board within 7 working days after finding the state of

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financial emergency or deficit position. A final report shall be

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provided to the entire governing board, the sponsor, and the

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Department of Education within 14 working days after the exit

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interview. When a charter school is in a state of financial

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emergency, the charter school shall file a detailed financial

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recovery plan with the sponsor. The department, with the

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involvement of both sponsors and charter schools, shall establish

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guidelines for developing such plans.

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11. A description of procedures that identify various risks

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and provide for a comprehensive approach to reduce the impact of

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losses; plans to ensure the safety and security of students and

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staff; plans to identify, minimize, and protect others from

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violent or disruptive student behavior; and the manner in which

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the school will be insured, including whether or not the school

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will be required to have liability insurance, and, if so, the

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terms and conditions thereof and the amounts of coverage.

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12. The term of the charter which shall provide for

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cancellation of the charter if insufficient progress has been

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made in attaining the student achievement objectives of the

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charter and if it is not likely that such objectives can be

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achieved before expiration of the charter. The initial term of a

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charter shall be for 4 or 5 years. In order to facilitate access

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to long-term financial resources for charter school construction,

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charter schools that are operated by a municipality or other

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public entity as provided by law are eligible for up to a 15-year

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charter, subject to approval by the district school board. A

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charter lab school is eligible for a charter for a term of up to

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15 years. In addition, to facilitate access to long-term

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financial resources for charter school construction, charter

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schools that are operated by a private, not-for-profit, s.

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501(c)(3) status corporation are eligible for up to a 15-year

457

charter, subject to approval by the district school board. Such

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long-term charters remain subject to annual review and may be

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terminated during the term of the charter, but only according to

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the provisions set forth in subsection (8).

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13. The facilities to be used and their location.

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14. The qualifications to be required of the teachers and

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the potential strategies used to recruit, hire, train, and retain

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qualified staff to achieve best value.

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15. The governance structure of the school, including the

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status of the charter school as a public or private employer as

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required in paragraph (12)(i).

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16. A timetable for implementing the charter which

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addresses the implementation of each element thereof and the date

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by which the charter shall be awarded in order to meet this

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timetable.

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17. In the case of an existing public school being

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converted to charter status, alternative arrangements for current

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students who choose not to attend the charter school and for

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current teachers who choose not to teach in the charter school

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after conversion in accordance with the existing collective

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bargaining agreement or district school board rule in the absence

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of a collective bargaining agreement. However, alternative

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arrangements shall not be required for current teachers who

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choose not to teach in a charter lab school, except as authorized

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by the employment policies of the state university which grants

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the charter to the lab school.

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18. Full disclosure of the identity of all relatives

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employed by the charter school who are related to the charter

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school owner, president, chairperson of the governing board of

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directors, superintendent, governing board member, principal,

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assistant principal, or any other person employed by the charter

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school having equivalent decisionmaking authority. For the

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purpose of this subparagraph, the term "relative" means father,

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mother, son, daughter, brother, sister, uncle, aunt, first

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cousin, nephew, niece, husband, wife, father-in-law, mother-in-

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law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,

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stepfather, stepmother, stepson, stepdaughter, stepbrother,

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stepsister, half brother, or half sister.

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(9) CHARTER SCHOOL REQUIREMENTS.--

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(g) A charter school shall provide for an annual financial

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audit in accordance with s. 218.39. Financial audits that reveal

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a state of financial emergency as defined in s. 218.503 and are

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conducted by a certified public accountant or auditor in

500

accordance with s. 218.39 shall be provided to the governing body

501

of the charter school within 7 working days after finding that a

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state of financial emergency exists. When a charter school is

503

found to be in a state of financial emergency by a certified

504

public accountant or auditor, the charter school must file a

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detailed financial recovery plan with the sponsor within 30 days

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after receipt of the audit.

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(g)(h) In order to provide financial information that is

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comparable to that reported for other public schools, charter

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schools are to maintain all financial records which constitute

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their accounting system:

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1. In accordance with the accounts and codes prescribed in

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the most recent issuance of the publication titled "Financial and

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Program Cost Accounting and Reporting for Florida Schools"; or

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2. At the discretion of the charter school governing board,

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a charter school may elect to follow generally accepted

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accounting standards for not-for-profit organizations, but must

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reformat this information for reporting according to this

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paragraph.

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Charter schools shall provide annual financial report and program

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cost report information in the state-required formats for

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inclusion in district reporting in compliance with s. 1011.60(1).

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Charter schools that are operated by a municipality or are a

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component unit of a parent nonprofit organization may use the

525

accounting system of the municipality or the parent but must

526

reformat this information for reporting according to this

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paragraph. A charter school shall provide monthly financial

528

statements to the sponsor.

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(h)(i) The governing board of the charter school shall

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annually adopt and maintain an operating budget.

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(i)(j) The governing body of the charter school shall

532

exercise continuing oversight over charter school operations.

533

(j)(k) The governing body of the charter school shall be

534

responsible for:

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1. Ensuring that the charter school has retained the

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services of a certified public accountant or auditor for the

537

annual financial audit, pursuant to s. 1002.345(2) paragraph (g),

538

who shall submit the report to the governing body.

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2. Reviewing and approving the audit report, including

540

audit findings and recommendations for the financial recovery

541

plan.

542

3.a. Performing the duties provided for in s. 1002.345,

543

including monitoring a corrective action plan.

544

b. Monitoring a financial recovery plan in order to ensure

545

compliance.

546

4. Participating in governance training approved by the

547

department that must include government in the sunshine,

548

conflicts of interest, ethics, and financial responsibility.

549

(k)(l) The governing body of the charter school shall

550

report its progress annually to its sponsor, which shall forward

551

the report to the Commissioner of Education at the same time as

552

other annual school accountability reports. The Department of

553

Education shall develop a uniform, online annual accountability

554

report to be completed by charter schools. This report shall be

555

easy to utilize and contain demographic information, student

556

performance data, and financial accountability information. A

557

charter school shall not be required to provide information and

558

data that is duplicative and already in the possession of the

559

department. The Department of Education shall include in its

560

compilation a notation if a school failed to file its report by

561

the deadline established by the department. The report shall

562

include at least the following components:

563

1. Student achievement performance data, including the

564

information required for the annual school report and the

565

education accountability system governed by ss. 1008.31 and

566

1008.345. Charter schools are subject to the same accountability

567

requirements as other public schools, including reports of

568

student achievement information that links baseline student data

569

to the school's performance projections identified in the

570

charter. The charter school shall identify reasons for any

571

difference between projected and actual student performance.

572

2. Financial status of the charter school which must

573

include revenues and expenditures at a level of detail that

574

allows for analysis of the ability to meet financial obligations

575

and timely repayment of debt.

576

3. Documentation of the facilities in current use and any

577

planned facilities for use by the charter school for instruction

578

of students, administrative functions, or investment purposes.

579

4. Descriptive information about the charter school's

580

personnel, including salary and benefit levels of charter school

581

employees, the proportion of instructional personnel who hold

582

professional or temporary certificates, and the proportion of

583

instructional personnel teaching in-field or out-of-field.

584

(l)(m) A charter school shall not levy taxes or issue bonds

585

secured by tax revenues.

586

(m)(n) A charter school shall provide instruction for at

587

least the number of days required by law for other public

588

schools, and may provide instruction for additional days.

589

(n)(o) The director and a representative of the governing

590

body of a charter school that has received a school grade of "D"

591

under s. 1008.34(2) shall appear before the sponsor or the

592

sponsor's staff at least once a year to present information

593

concerning each contract component having noted deficiencies. The

594

sponsor shall communicate at the meeting, and in writing to the

595

director, the services provided to the school to help the school

596

address its deficiencies.

597

(o)(p) Upon notification that a charter school receives a

598

school grade of "D" for 2 consecutive years or a school grade of

599

"F" under s. 1008.34(2), the charter school sponsor or the

600

sponsor's staff shall require the director and a representative

601

of the governing body to submit to the sponsor for approval a

602

school improvement plan to raise student achievement and to

603

implement the plan. The sponsor has the authority to approve a

604

school improvement plan that the charter school will implement in

605

the following school year. The sponsor may also consider the

606

State Board of Education's recommended action pursuant to s.

607

1008.33(1) as part of the school improvement plan. The Department

608

of Education shall offer technical assistance and training to the

609

charter school and its governing body and establish guidelines

610

for developing, submitting, and approving such plans.

611

1. If the charter school fails to improve its student

612

performance from the year immediately prior to the implementation

613

of the school improvement plan, the sponsor shall place the

614

charter school on probation and shall require the charter school

615

governing body to take one of the following corrective actions:

616

a. Contract for the educational services of the charter

617

school;

618

b. Reorganize the school at the end of the school year

619

under a new director or principal who is authorized to hire new

620

staff and implement a plan that addresses the causes of

621

inadequate progress; or

622

c. Reconstitute the charter school.

623

2. A charter school that is placed on probation shall

624

continue the corrective actions required under subparagraph 1.

625

until the charter school improves its student performance from

626

the year prior to the implementation of the school improvement

627

plan.

628

3. Notwithstanding any provision of this paragraph, the

629

sponsor may terminate the charter at any time pursuant to the

630

provisions of subsection (8).

631

(p)(q) The director and a representative of the governing

632

body of a graded charter school that has submitted a school

633

improvement plan or has been placed on probation under paragraph

634

(o) (p) shall appear before the sponsor or the sponsor's staff at

635

least once a year to present information regarding the corrective

636

strategies that are being implemented by the school pursuant to

637

the school improvement plan. The sponsor shall communicate at the

638

meeting, and in writing to the director, the services provided to

639

the school to help the school address its deficiencies.

640

(17) FUNDING.--Students enrolled in a charter school,

641

regardless of the sponsorship, shall be funded as if they are in

642

a basic program or a special program, the same as students

643

enrolled in other public schools in the school district. Funding

644

for a charter lab school shall be as provided in s. 1002.32. The

645

maximum number of students eligible to be funded in any classroom

646

of any charter school shall be the maximum number prescribed by

647

law.

648

(a) Each charter school shall report its student enrollment

649

to the sponsor as required in s. 1011.62, and in accordance with

650

the definitions in s. 1011.61. The sponsor shall include each

651

charter school's enrollment in the district's report of student

652

enrollment. All charter schools submitting student record

653

information required by the Department of Education shall comply

654

with the Department of Education's guidelines for electronic data

655

formats for such data, and all districts shall accept electronic

656

data that complies with the Department of Education's electronic

657

format.

658

(b) The basis for the agreement for funding students

659

enrolled in a charter school shall be the sum of the school

660

district's operating funds from the Florida Education Finance

661

Program as provided in s. 1011.62 and the General Appropriations

662

Act, including gross state and local funds, discretionary lottery

663

funds, and funds from the school district's current operating

664

discretionary millage levy; divided by total funded weighted

665

full-time equivalent students in the school district; multiplied

666

by the weighted full-time equivalent students for the charter

667

school. Charter schools whose students or programs meet the

668

eligibility criteria in law shall be entitled to their

669

proportionate share of categorical program funds included in the

670

total funds available in the Florida Education Finance Program by

671

the Legislature, including transportation. Total funding for each

672

charter school shall be recalculated during the year to reflect

673

the revised calculations under the Florida Education Finance

674

Program by the state and the actual weighted full-time equivalent

675

students reported by the charter school during the full-time

676

equivalent student survey periods designated by the Commissioner

677

of Education.

678

679

services to students funded by federal funds, any eligible

680

students enrolled in charter schools in the school district shall

681

be provided federal funds for the same level of service provided

682

students in the schools operated by the district school board.

683

Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all charter

684

schools shall receive all federal funding for which the school is

685

otherwise eligible, including Title I funding, not later than 5

686

months after the charter school first opens and within 5 months

687

after any subsequent expansion of enrollment.

688

(d) District school boards shall make timely and efficient

689

payment and reimbursement to charter schools, including

690

processing paperwork required to access special state and federal

691

funding for which they may be eligible. The district school board

692

may distribute funds to a charter school for up to 3 months based

693

on the projected full-time equivalent student membership of the

694

charter school. Thereafter, the results of full-time equivalent

695

student membership surveys shall be used in adjusting the amount

696

of funds distributed monthly to the charter school for the

697

remainder of the fiscal year. The payment shall be issued no

698

later than 10 working days after the district school board

699

receives a distribution of state or federal funds. If a warrant

700

for payment is not issued within 10 working days after receipt of

701

funding by the district school board, the school district shall

702

pay to the charter school, in addition to the amount of the

703

scheduled disbursement, interest at a rate of 1 percent per month

704

calculated on a daily basis on the unpaid balance from the

705

expiration of the 10 working days until such time as the warrant

706

is issued.

707

(21) PUBLIC INFORMATION ON CHARTER SCHOOLS.--

708

(a) The Department of Education shall provide information

709

to the public, directly and through sponsors, both on how to form

710

and operate a charter school and on how to enroll in charter

711

schools once they are created. This information shall include a

712

standard application format, charter format, and charter renewal

713

format which shall include the information specified in

714

subsection (7) and shall be developed by consulting and

715

negotiating with both school districts and charter schools before

716

implementation. These formats shall be used as guidelines by

717

charter school sponsors.

718

(b)1. The Department of Education shall report student

719

assessment data pursuant to s. 1008.34(3)(b) which is reported to

720

schools that receive a school grade pursuant to s. 1008.34 or

721

student assessment data pursuant to s. 1008.341(3) which is

722

reported to alternative schools that receive a school improvement

723

rating pursuant to s. 1008.341 to each charter school that:

724

a. Does not receive a school grade pursuant to s. 1008.34

725

or a school improvement rating pursuant to s. 1008.341; and

726

b. Serves at least 10 students who are tested on the

727

statewide assessment test pursuant to s. 1008.22.

728

2. The charter school shall report the information in

729

subparagraph 1. to each parent of a student at the charter

730

school, the parent of a child on a waiting list for the charter

731

school, the district in which the charter school is located, and

732

the governing board of the charter school. This paragraph does

733

not abrogate the provisions of s. 1002.22, relating to student

734

records, and the requirements of 20 U.S.C. s. 1232g, the Family

735

Educational Rights and Privacy Act.

736

3.a. Pursuant to this paragraph, the Department of

737

Education shall compare the charter school student performance

738

data for each charter school in subparagraph 1. with the student

739

performance data in traditional public schools in the district in

740

which the charter school is located and other charter schools in

741

the state. For charter alternative charter schools, the

742

department shall compare the student performance data described

743

in this paragraph with all alternative schools in the state. The

744

comparative data shall be provided by the following grade

745

groupings:

746

(I) Grades 3 through 5;

747

(II) Grades 6 through 8; and

748

(III) Grades 9 through 11.

749

b. Each charter school shall provide the information in

750

this paragraph on its Internet website and also provide notice to

751

the public in a manner that notifies the community at large, as

752

provided by rules of the State Board of Education. The State

753

Board of Education shall adopt rules to administer the notice

754

requirements of this subparagraph pursuant to ss. 120.536(1) and

755

120.54. The website shall include, through links or actual

756

content, other information related to school performance.

757

(24) RESTRICTION ON EMPLOYMENT OF RELATIVES.--

758

(a) This subsection applies to charter school personnel in

759

a charter school operated by a private entity. As used in this

760

subsection, the term:

761

1. "Charter school personnel" means a charter school owner,

762

president, chairperson of the governing board of directors,

763

superintendent, governing board member, principal, assistant

764

principal, or any other person employed by the charter school

765

having equivalent decisionmaking authority and in whom is vested

766

the authority, or to whom the authority has been delegated, to

767

appoint, employ, promote, or advance individuals or to recommend

768

individuals for appointment, employment, promotion, or

769

advancement in connection with employment in a charter school,

770

including the authority as a member of a governing body of a

771

charter school to vote on the appointment, employment, promotion,

772

or advancement of individuals.

773

2. "Relative" means father, mother, son, daughter, brother,

774

sister, uncle, aunt, first cousin, nephew, niece, husband, wife,

775

father-in-law, mother-in-law, son-in-law, daughter-in-law,

776

brother-in-law, sister-in-law, stepfather, stepmother, stepson,

777

stepdaughter, stepbrother, stepsister, half brother, or half

778

sister.

779

(b) Charter school personnel may not appoint, employ,

780

promote, or advance, or advocate for appointment, employment,

781

promotion, or advancement, in or to a position in the charter

782

school in which the personnel are serving or over which the

783

personnel exercises jurisdiction or control any individual who is

784

a relative. An individual may not be appointed, employed,

785

promoted, or advanced in or to a position in a charter school if

786

such appointment, employment, promotion, or advancement has been

787

advocated by charter school personnel who serve in or exercise

788

jurisdiction or control over the charter school and who is a

789

relative of the individual or if such appointment, employment,

790

promotion, or advancement is made by the governing board of which

791

a relative of the individual is a member.

792

793

"jurisdiction or control" for the purposes of this subsection.

794

Charter school personnel in schools operated by a municipality or

795

other public entity are subject to the provisions of s. 112.3135.

796

(25)(a) A member of a governing board of a charter school,

797

including a charter school operated by a private entity, is

798

subject to the provisions of ss. 112.313(2), (3), (7), and (12)

799

and 112.3143(3).

800

(b) A member of a governing board of a charter school

801

operated by a municipality or other public entity is subject to

802

the provisions of s. 112.3144, relating to the disclosure of

803

financial interests.

804

Section 7. Subsection (5), paragraph (a) of subsection (7),

805

paragraph (a) of subsection (11), and subsection (12) of section

806

1002.335, Florida Statutes, are amended to read:

807

1002.335 Florida Schools of Excellence Commission.--

808

(5) CHARTERING AUTHORITY.--

809

(a) A charter school applicant may submit an application to

810

the commission only if the school district in which the FSE

811

charter school is to be located has not retained exclusive

812

authority to authorize charter schools as provided in paragraph

813

(e). If a district school board has not retained exclusive

814

authority to authorize charter schools as provided in paragraph

815

(e), the district school board and the commission shall have

816

concurrent authority to authorize charter schools and FSE charter

817

schools, respectively, to be located within the geographic

818

boundaries of the school district. The district school board

819

shall monitor and oversee all charter schools authorized by the

820

district school board pursuant to s. 1002.33. The commission

821

shall monitor and oversee all FSE charter schools sponsored by

822

the commission pursuant to subsection (4).

823

(b) Paragraph (e) may not be construed to eliminate the

824

ability of a district school board to authorize charter schools

825

pursuant to s. 1002.33. A district school board shall retain the

826

authority to reauthorize and to oversee any charter school that

827

it has authorized, except with respect to any charter school that

828

is converted to an FSE charter school under this section.

829

830

thereafter, a district school board may seek to retain exclusive

831

authority to authorize charter schools within the geographic

832

boundaries of the school district by presenting to the State

833

Board of Education, on or before March 1 of the fiscal year prior

834

to that for which the exclusive authority is to apply, a written

835

resolution adopted by the district school board indicating the

836

intent to seek retain exclusive authority to authorize charter

837

schools. A district school board may seek to retain the exclusive

838

authority to authorize charter schools by presenting to the state

839

board the written resolution on or before a date 60 days after

840

establishment of the commission. The written resolution shall be

841

accompanied by a written description addressing the elements

842

described in paragraph (e). The district school board shall

843

provide a complete copy of the resolution, including the

844

description, to each charter school authorized by the district

845

school board on or before the date it submits the resolution to

846

the state board.

847

(d) A party may challenge the grant of exclusive authority

848

made by the State Board of Education pursuant to paragraph (e) by

849

filing with the state board a notice of challenge within 30 days

850

after the state board grants initial exclusive authority. The

851

notice shall be accompanied by a specific written description of

852

the basis for the challenge. The challenging party, at the time

853

of filing notice with the state board, shall provide a copy of

854

the notice of challenge to the district school board that has

855

been granted exclusive authority. The state board shall permit

856

the district school board the opportunity to appear and respond

857

in writing to the challenge. The state board shall make a

858

determination upon the challenge within 60 days after receiving

859

the notice of challenge.

860

(e) The State Board of Education shall grant to a district

861

school board exclusive authority to authorize charter schools

862

within the geographic boundaries of the school district if the

863

state board determines, after adequate notice, in a public

864

hearing, and after receiving input from any charter school

865

authorized by the district school board, that the district school

866

board has provided fair and equitable treatment to its charter

867

schools during the 4 years prior to the district school board's

868

submission of the resolution described in paragraph (c). The

869

state board's review of the resolution shall, at a minimum,

870

include consideration of the following:

871

1. Compliance with the provisions of s. 1002.33.

872

2. Compliance with full and accurate accounting practices

873

and charges for central administrative overhead costs.

874

3. Compliance with requirements allowing a charter school,

875

at its discretion, to purchase certain services or a combination

876

of services at actual cost to the district.

877

4. The absence of a district school board moratorium

878

regarding charter schools or the absence of any districtwide

879

charter school enrollment limits.

880

5. Compliance with valid orders of the state board.

881

6. The provision of assistance to charter schools to meet

882

their facilities needs by including those needs in local bond

883

issues or otherwise providing available land and facilities that

884

are comparable to those provided to other public school students

885

in the same grade levels within the school district.

886

7. The distribution to charter schools authorized by the

887

district school board of a pro rata share of federal and state

888

grants received by the district school board, except for any

889

grant received for a particular purpose which, by its express

890

terms, is intended to benefit a student population not able to be

891

served by, or a program not able to be offered at, a charter

892

school that did not receive a proportionate share of such grant

893

proceeds.

894

8. The provision of adequate staff and other resources to

895

serve charter schools authorized by the district school board,

896

which services are provided by the district school board at a

897

cost to the charter schools that does not exceed their actual

898

cost to the district school board.

899

9. The lack of a policy or practice of imposing individual

900

charter school enrollment limits, except as otherwise provided by

901

law.

902

10. The provision of an adequate number of educational

903

choice programs to serve students exercising their rights to

904

transfer pursuant to the "No Child Left Behind Act of 2001," Pub.

905

L. No. 107-110, and a history of charter school approval that

906

encourages chartering.

907

(f) The decision of the State Board of Education pursuant

908

to paragraph (e) shall not be subject to the provisions of

909

chapter 120 and shall be a final action subject to judicial

910

review by the district court of appeal.

911

(g) For district school boards that have no discernible

912

history of authorizing charter schools, the State Board of

913

Education may not grant exclusive authority unless the district

914

school board demonstrates that no approvable application has come

915

before the district school board.

916

(h)1. A grant of exclusive authority by the State Board of

917

Education shall continue so long as a district school board

918

continues to comply with this section and has presented a written

919

resolution to the state board as set forth in paragraph (c). For

920

purposes of this paragraph, there is established a rebuttable

921

presumption that a district school board that has been granted

922

exclusivity is acting in good faith in its capacity to review

923

applications.

924

2. A party may challenge the grant of exclusive authority

925

made by the State Board of Education pursuant to this paragraph

926

by filing with the state board a notice of challenge. The notice

927

shall be accompanied by a specific written description of the

928

basis for the challenge. The challenging party, at the time of

929

filing notice with the state board, shall provide a copy of the

930

notice of challenge to the district school board that has been

931

granted exclusive authority. The State Board of Education shall

932

permit the district school board the opportunity to appear and

933

respond in writing to the challenge. The state board shall make a

934

determination upon the challenge within 60 days after receiving

935

the notice of challenge.

936

(i) Notwithstanding any other provision of this section to

937

the contrary, a district school board may permit the

938

establishment of one or more FSE charter schools within the

939

geographic boundaries of the school district by adopting a

940

favorable resolution and submitting the resolution to the State

941

Board of Education. The resolution shall be effective until it is

942

rescinded by resolution of the district school board.

943

(7) COSPONSOR AGREEMENT.--

944

(a) Upon approval of a cosponsor, the commission and the

945

cosponsor shall enter into an agreement that defines the

946

cosponsor's rights and obligations and includes the following:

947

1. An explanation of the personnel, contractual and

948

interagency relationships, and potential revenue sources

949

referenced in the application as required in paragraph (6)(c).

950

2. Incorporation of the requirements of equal access for

951

all students, including any plans to provide food service or

952

transportation reasonably necessary to provide access to as many

953

students as possible.

954

3. Incorporation of the requirement to serve low-income,

955

low-performing, gifted, or underserved student populations.

956

4. An explanation of the academic and financial goals and

957

expected outcomes for the cosponsor's charter schools and the

958

method and plans by which they will be measured and achieved as

959

referenced in the application.

960

5. The conflict-of-interest policies referenced in the

961

application.

962

6. An explanation of the disposition of facilities and

963

assets upon termination and dissolution of a charter school

964

approved by the cosponsor.

965

7.a. A provision requiring the cosponsor to annually appear

966

before the commission and provide a report as to the information

967

provided pursuant to s. 1002.33(9)(l) for each of its charter

968

schools.

969

b. A provision requiring the cosponsor to perform the

970

duties provided for in s. 1002.345.

971

c. A provision requiring the governing board to perform the

972

duties provided for in s. 1002.345, including monitoring the

973

corrective action plan.

974

8. A provision requiring that the cosponsor report the

975

student enrollment in each of its sponsored charter schools to

976

the district school board of the county in which the school is

977

located.

978

9. A provision requiring that the cosponsor work with the

979

commission to provide the necessary reports to the State Board of

980

Education.

981

10. Any other reasonable terms deemed appropriate by the

982

commission given the unique characteristics of the cosponsor.

983

(11) APPLICATION OF CHARTER SCHOOL STATUTE.--

984

(a) The provisions of s. 1002.33(7)-(12), (14), and (16)-

985

(19), (21)(b), (24), and (25) shall apply to the commission and

986

the cosponsors and charter schools approved pursuant to this

987

section.

988

(12) ACCESS TO INFORMATION.--The commission shall provide

989

maximum access to information to all parents in the state. It

990

shall maintain information systems, including, but not limited

991

to, a user-friendly Internet website, that will provide

992

information and data necessary for parents to make informed

993

decisions, including a link to the information provided in s.

994

1002.33(21)(b)3.b. At a minimum, the commission must provide

995

parents with information on its accountability standards, links

996

to schools of excellence throughout the state, and public

997

education programs available in the state.

998

Section 8. Subsections (4) and (5), paragraphs (d) and (f)

999

of subsection (6), paragraph (c) of subsection (10), subsection

1000

(13) of section 1002.34, Florida Statutes, are amended to read:

1001

1002.34 Charter technical career centers.--

1002

(4) CHARTER.--A sponsor may designate centers as provided

1003

in this section. An application to establish a center may be

1004

submitted by a sponsor or another organization that is

1005

determined, by rule of the State Board of Education, to be

1006

appropriate. However, an independent school is not eligible for

1007

status as a center. The charter must be signed by the governing

1008

body of the center and the sponsor, and must be approved by the

1009

district school board and community college board of trustees in

1010

whose geographic region the facility is located. If a charter

1011

technical career center is established by the conversion to

1012

charter status of a public technical center formerly governed by

1013

a district school board, the charter status of that center takes

1014

precedence in any question of governance. The governance of the

1015

center or of any program within the center remains with its board

1016

of directors unless the board agrees to a change in governance or

1017

its charter is revoked as provided in subsection (15). Such a

1018

conversion charter technical career center is not affected by a

1019

change in the governance of public technical centers or of

1020

programs within other centers that are or have been governed by

1021

district school boards. A charter technical career center, or any

1022

program within such a center, that was governed by a district

1023

school board and transferred to a community college prior to the

1024

effective date of this act is not affected by this provision. An

1025

applicant who wishes to establish a center must submit to the

1026

district school board or community college board of trustees, or

1027

a consortium of one or more of each, an application on a form

1028

developed by the Department of Education which that includes:

1029

(a) The name of the proposed center.

1030

(b) The proposed structure of the center, including a list

1031

of proposed members of the board of directors or a description of

1032

the qualifications for and method of their appointment or

1033

election.

1034

1035

curriculum to be offered, and the outcomes and the methods of

1036

assessing the extent to which the outcomes are met.

1037

(d) The admissions policy and criteria for evaluating the

1038

admission of students.

1039

(e) A description of the staff responsibilities and the

1040

proposed qualifications of the teaching staff.

1041

(f) A description of the procedures to be implemented to

1042

ensure significant involvement of representatives of business and

1043

industry in the operation of the center.

1044

(g) A method for determining whether a student has

1045

satisfied the requirements for graduation specified in s. 1003.43

1046

and for completion of a postsecondary certificate or degree.

1047

(h) A method for granting secondary and postsecondary

1048

diplomas, certificates, and degrees.

1049

(i) A description of and address for the physical facility

1050

in which the center will be located.

1051

(j) A method of resolving conflicts between the governing

1052

body of the center and the sponsor and between consortium

1053

members, if applicable.

1054

(k) A method for reporting student data as required by law

1055

and rule.

1056

(l) A statement that the applicant has participated in the

1057

training provided by the Department of Education.

1058

(m) The identity of all relatives employed by the charter

1059

technical career center who are related to the center owner,

1060

president, chairperson of the governing board of directors,

1061

superintendent, governing board member, principal, assistant

1062

principal, or any other person employed by the center who has

1063

equivalent decisionmaking authority. As used in this paragraph,

1064

the term "relative" means father, mother, son, daughter, brother,

1065

sister, uncle, aunt, first cousin, nephew, niece, husband, wife,

1066

father-in-law, mother-in-law, son-in-law, daughter-in-law,

1067

brother-in-law, sister-in-law, stepfather, stepmother, stepson,

1068

stepdaughter, stepbrother, stepsister, half brother, or half

1069

sister.

1070

(m)(l) Other information required by the district school

1071

board or community college board of trustees.

1072

1073

Students at a center must meet the same testing and academic

1074

performance standards as those established by law and rule for

1075

students at public schools and public technical centers. The

1076

students must also meet any additional assessment indicators that

1077

are included within the charter approved by the district school

1078

board or community college board of trustees.

1079

(5) APPLICATION.--An application to establish a center must

1080

be submitted by February 1 of the year preceding the school year

1081

in which the center will begin operation. The sponsor must review

1082

the application using an evaluation instrument developed by the

1083

Department of Education and make a final decision on whether to

1084

approve the application and grant the charter by March 1, and may

1085

condition the granting of a charter on the center's taking

1086

certain actions or maintaining certain conditions. Such actions

1087

and conditions must be provided to the applicant in writing. The

1088

district school board or community college board of trustees is

1089

not required to issue a charter to any person.

1090

(6) SPONSOR.--A district school board or community college

1091

board of trustees or a consortium of one or more of each may

1092

sponsor a center in the county in which the board has

1093

jurisdiction.

1094

(d)1. The Department of Education shall offer or arrange

1095

for training and technical assistance to applicants in developing

1096

business plans and estimating costs and income. This assistance

1097

shall address estimating startup costs, projecting enrollment,

1098

and identifying the types and amounts of state and federal

1099

financial assistance the center will be eligible to receive. The

1100

training shall include instruction in accurate financial planning

1101

and good business practices.

1102

2. An applicant must participate in the training provided

1103

by the Department of Education prior to filing an application.

1104

The Department of Education may provide technical assistance to

1105

an applicant upon written request.

1106

(f) The sponsor shall monitor and review the center's

1107

progress toward charter goals and shall monitor the center's

1108

revenues and expenditures. The sponsor shall perform the duties

1109

provided for in s. 1002.345.

1110

(10) EXEMPTION FROM STATUTES.--

1111

1112

provisions of s. 1000.05 and the provisions of s. 1002.33(24),

1113

relating to the employment of relatives.

1114

(13) BOARD OF DIRECTORS AUTHORITY.--The board of directors

1115

of a center may decide matters relating to the operation of the

1116

school, including budgeting, curriculum, and operating

1117

procedures, subject to the center's charter. The board of

1118

directors is responsible for performing the duties provided for

1119

in s. 1002.345, including monitoring the corrective action plan.

1120

The board of directors must comply with the provisions of s.

1121

1002.33(25).

1122

Section 9. Section 1002.345, Florida Statutes, is created

1123

to read:

1124

1002.345 Determination of financial weaknesses and

1125

financial emergencies for charter schools and charter technical

1126

career centers.--This section applies to charter schools

1127

operating pursuant to ss. 1002.33 and 1002.335, and to charter

1128

technical career centers operating pursuant to s. 1002.34.

1129

(1) FINANCIAL WEAKNESS; REQUIREMENTS.--

1130

(a) A charter school and a charter technical career center

1131

shall be subject to an expedited review by the sponsor when any

1132

one of the following conditions occurs:

1133

1. An end-of-year financial deficit.

1134

2. A substantial decline in student enrollment without a

1135

commensurate reduction in expenses.

1136

3. Insufficient revenues to pay current operating expenses.

1137

4. Insufficient revenues to pay long-term expenses.

1138

5. Disproportionate administrative expenses.

1139

6. Excessive debt.

1140

7. Excessive expenditures.

1141

8. Inadequate fund balances or reserves.

1142

9. Failure to meet financial reporting requirements

1143

pursuant to s. 1002.33(9), s. 1002.335(7)(a)7., or s.

1144

1002.34(14).

1145

10. Weak financial controls or other adverse financial

1146

conditions identified through an internal audit or annual audit

1147

conducted pursuant to s. 218.39.

1148

11. Negative financial findings cited in reports by the

1149

Auditor General or the Office of Program Policy Analysis and

1150

Government Accountability.

1151

(b) A sponsor shall notify the governing board within 7

1152

working days when one or more of the conditions specified in

1153

paragraph (a) occur.

1154

1155

corrective action plan and file the plan with the Commissioner of

1156

Education and the Florida Schools of Excellence Commission within

1157

30 working days. If the governing board and the sponsor are

1158

unable to agree on a corrective action plan, the State Board of

1159

Education shall determine the components of the plan. The

1160

governing board shall implement the plan.

1161

(d) The governing board shall include the corrective action

1162

plan and the status of its implementation in the annual progress

1163

report to the sponsor that is required under s. 1002.33(9)(l), s.

1164

1002.335(7)(a)7., or s. 1002.34(14).

1165

(e) If the governing board fails to implement the

1166

corrective action plan within 1 year, the State Board of

1167

Education shall prescribe any steps necessary for the charter

1168

school or the charter technical career center to comply with

1169

state requirements.

1170

(f) The chair of the governing board shall annually appear

1171

before the State Board of Education and report on the

1172

implementation of the State Board of Education's requirements.

1173

(2) FINANCIAL EMERGENCY; DEFICIT FUND BALANCE; DEFICIT NET

1174

ASSETS; REQUIREMENTS.--

1175

(a) A charter school and a charter technical career center

1176

shall provide for a certified public accountant or auditor to

1177

conduct an annual financial audit in accordance with s. 218.39.

1178

(b) The charter shall ensure that, if an internal audit or

1179

annual financial audit of a charter school or charter technical

1180

career center reveals one or more of the conditions in s.

1181

218.503(1) have occurred or will occur if action is not taken or

1182

if a charter school or charter technical career center has a

1183

deficit fund balance or deficit net assets, the auditor must

1184

notify the governing board of the charter school or charter

1185

technical career center, as appropriate, the sponsor, and the

1186

Commissioner of Education.

1187

1188

accountant or auditor in accordance with s. 218.503 reveals that

1189

one or more of the conditions in s. 218.503(1) have occurred or

1190

will occur if action is not taken or when a deficit fund balance

1191

or deficit net assets exist, the auditor shall notify and provide

1192

the financial audit to the governing board of the charter school

1193

or charter technical career center, as appropriate, the sponsor,

1194

and the Commissioner of Education within 7 working days after the

1195

finding is made.

1196

1. The internal auditor shall:

1197

a. Report the findings in the form of an exit interview

1198

with the principal or the principal administrator of the charter

1199

school or the director of the charter technical career center, as

1200

appropriate, and the chair of the governing board within 7

1201

working days after the finding is made.

1202

b. Provide a final report to all members of the governing

1203

board, the sponsor, and the Department of Education within 14

1204

working days after the exit interview.

1205

2. When the charter school or charter technical career

1206

center is found to be in a state of financial emergency pursuant

1207

to s. 218.503(4), the charter school or charter technical career

1208

center shall file a detailed financial recovery plan as provided

1209

for in s. 218.503 with the sponsor within 30 days after being

1210

notified by the Commissioner of Education that a financial

1211

recovery plan is needed.

1212

(d) The sponsor shall file a copy of the financial recovery

1213

plan with the Commissioner of Education and the Florida Schools

1214

of Excellence Commission.

1215

(e) The governing board shall include the financial

1216

recovery plan and the status of its implementation in the annual

1217

progress report to the sponsor which is required under s.

1218

1002.33(9)(l), s. 1002.335(7)(a)7., or s. 1002.34(14).

1219

(3) REPORT.--The Commissioner of Education shall annually

1220

report to the State Board of Education each charter school and

1221

charter technical career center that is subject to a financial

1222

recovery plan or a corrective action plan under this section.

1223

(4) RULES.--The State Board of Education shall adopt rules

1224

pursuant to ss. 120.536(1) and 120.54 for developing financial

1225

recovery and corrective action plans.

1226

(5) TECHNICAL ASSISTANCE.--The Department of Education

1227

shall provide technical assistance to charter schools, charter

1228

technical career centers, governing boards, and sponsors in

1229

developing financial recovery and corrective action plans.

1230

(6) FAILURE TO CORRECT DEFICIENCIES.--The sponsor may

1231

choose not to renew or may terminate a charter if the charter

1232

school or charter technical career center fails to correct the

1233

deficiencies in the corrective action plan within 1 year or

1234

exhibits one or more financial emergency conditions as provided

1235

in s. 218.503 for 2 consecutive years.

1236

Section 10. This act shall take effect July 1, 2008.

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