Florida Senate - 2008 CS for SB 1652

By the Committees on Education Pre-K - 12; Education Pre-K - 12

581-04515-08 20081652c1

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 presumption for

district school boards that are granted exclusivity;

providing for informal hearings; 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

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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 (1), (2), and (4) of section

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218.503, Florida Statutes, are amended to read:

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218.503 Determination of financial emergency.--

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(1) Local governmental entities, charter schools, charter

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technical career centers, and district school boards shall be

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subject to review and oversight by the Governor, the charter

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school sponsor, the charter technical career center sponsor, or

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the Commissioner of Education, as appropriate, when any one of

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the following conditions occurs:

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(a) Failure within the same fiscal year in which due to pay

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short-term loans or failure to make bond debt service or other

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long-term debt payments when due, as a result of a lack of funds.

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(b) Failure to pay uncontested claims from creditors within

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90 days after the claim is presented, as a result of a lack of

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funds.

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lack of funds:

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1. Taxes withheld on the income of employees; or

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2. Employer and employee contributions for:

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a. Federal social security; or

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b. Any pension, retirement, or benefit plan of an employee.

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(d) Failure for one pay period to pay, due to lack of

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funds:

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1. Wages and salaries owed to employees; or

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2. Retirement benefits owed to former employees.

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(e) An unreserved or total fund balance or retained

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earnings deficit, or unrestricted or total net assets deficit, as

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reported on the balance sheet or statement of net assets on the

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general purpose or fund financial statements, for which

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sufficient resources of the local governmental entity, as

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reported on the balance sheet or statement of net assets on the

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general purpose or fund financial statements, are not available

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to cover the deficit. Resources available to cover reported

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deficits include net assets that are not otherwise restricted by

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federal, state, or local laws, bond covenants, contractual

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agreements, or other legal constraints. Fixed or capital assets,

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the disposal of which would impair the ability of a local

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governmental entity to carry out its functions, are not

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considered resources available to cover reported deficits.

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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), (21), and (23) of section 1002.33, Florida Statutes, are

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amended, present subsection (24) of that section is redesignated

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as 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

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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

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

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

539

state of financial emergency exists. When a charter school is

540

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

541

public accountant or auditor, the charter school must file a

542

detailed financial recovery plan with the sponsor within 30 days

543

after receipt of the audit.

544

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

545

comparable to that reported for other public schools, charter

546

schools are to maintain all financial records which constitute

547

their accounting system:

548

1. In accordance with the accounts and codes prescribed in

549

the most recent issuance of the publication titled "Financial and

550

Program Cost Accounting and Reporting for Florida Schools"; or

551

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

552

a charter school may elect to follow generally accepted

553

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

554

reformat this information for reporting according to this

555

paragraph.

556

557

Charter schools shall provide annual financial report and program

558

cost report information in the state-required formats for

559

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

560

Charter schools that are operated by a municipality or are a

561

component unit of a parent nonprofit organization may use the

562

accounting system of the municipality or the parent but must

563

reformat this information for reporting according to this

564

paragraph. A charter school shall provide monthly financial

565

statements to the sponsor.

566

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

567

annually adopt and maintain an operating budget.

568

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

569

exercise continuing oversight over charter school operations.

570

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

571

responsible for:

572

1. Ensuring that the charter school has retained the

573

services of a certified public accountant or auditor for the

574

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

575

who shall submit the report to the governing body.

576

2. Reviewing and approving the audit report, including

577

audit findings and recommendations for the financial recovery

578

plan.

579

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

580

including monitoring a corrective action plan.

581

b. Monitoring a financial recovery plan in order to ensure

582

compliance.

583

4. Participating in governance training approved by the

584

department that must include government in the sunshine,

585

conflicts of interest, ethics, and financial responsibility.

586

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

587

report its progress annually to its sponsor, which shall forward

588

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

589

other annual school accountability reports. The Department of

590

Education shall develop a uniform, online annual accountability

591

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

592

easy to utilize and contain demographic information, student

593

performance data, and financial accountability information. A

594

charter school shall not be required to provide information and

595

data that is duplicative and already in the possession of the

596

department. The Department of Education shall include in its

597

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

598

the deadline established by the department. The report shall

599

include at least the following components:

600

1. Student achievement performance data, including the

601

information required for the annual school report and the

602

education accountability system governed by ss. 1008.31 and

603

1008.345. Charter schools are subject to the same accountability

604

requirements as other public schools, including reports of

605

student achievement information that links baseline student data

606

to the school's performance projections identified in the

607

charter. The charter school shall identify reasons for any

608

difference between projected and actual student performance.

609

2. Financial status of the charter school which must

610

include revenues and expenditures at a level of detail that

611

allows for analysis of the ability to meet financial obligations

612

and timely repayment of debt.

613

3. Documentation of the facilities in current use and any

614

planned facilities for use by the charter school for instruction

615

of students, administrative functions, or investment purposes.

616

4. Descriptive information about the charter school's

617

personnel, including salary and benefit levels of charter school

618

employees, the proportion of instructional personnel who hold

619

professional or temporary certificates, and the proportion of

620

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

621

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

622

secured by tax revenues.

623

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

624

least the number of days required by law for other public

625

schools, and may provide instruction for additional days.

626

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

627

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

628

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

629

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

630

concerning each contract component having noted deficiencies. The

631

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

632

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

633

address its deficiencies.

634

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

635

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

636

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

637

sponsor's staff shall require the director and a representative

638

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

639

school improvement plan to raise student achievement and to

640

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

641

school improvement plan that the charter school will implement in

642

the following school year. The sponsor may also consider the

643

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

644

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

645

of Education shall offer technical assistance and training to the

646

charter school and its governing body and establish guidelines

647

for developing, submitting, and approving such plans.

648

1. If the charter school fails to improve its student

649

performance from the year immediately prior to the implementation

650

of the school improvement plan, the sponsor shall place the

651

charter school on probation and shall require the charter school

652

governing body to take one of the following corrective actions:

653

a. Contract for the educational services of the charter

654

school;

655

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

656

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

657

staff and implement a plan that addresses the causes of

658

inadequate progress; or

659

c. Reconstitute the charter school.

660

2. A charter school that is placed on probation shall

661

continue the corrective actions required under subparagraph 1.

662

until the charter school improves its student performance from

663

the year prior to the implementation of the school improvement

664

plan.

665

3. Notwithstanding any provision of this paragraph, the

666

sponsor may terminate the charter at any time pursuant to the

667

provisions of subsection (8).

668

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

669

body of a graded charter school that has submitted a school

670

improvement plan or has been placed on probation under paragraph

671

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

672

least once a year to present information regarding the corrective

673

strategies that are being implemented by the school pursuant to

674

the school improvement plan. The sponsor shall communicate at the

675

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

676

the school to help the school address its deficiencies.

677

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

678

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

679

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

680

enrolled in other public schools in the school district. Funding

681

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

682

maximum number of students eligible to be funded in any classroom

683

of any charter school shall be the maximum number prescribed by

684

law.

685

(a) Each charter school shall report its student enrollment

686

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

687

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

688

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

689

enrollment. All charter schools submitting student record

690

information required by the Department of Education shall comply

691

with the Department of Education's guidelines for electronic data

692

formats for such data, and all districts shall accept electronic

693

data that complies with the Department of Education's electronic

694

format.

695

(b) The basis for the agreement for funding students

696

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

697

district's operating funds from the Florida Education Finance

698

Program as provided in s. 1011.62 and the General Appropriations

699

Act, including gross state and local funds, discretionary lottery

700

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

701

discretionary millage levy; divided by total funded weighted

702

full-time equivalent students in the school district; multiplied

703

by the weighted full-time equivalent students for the charter

704

school. Charter schools whose students or programs meet the

705

eligibility criteria in law shall be entitled to their

706

proportionate share of categorical program funds included in the

707

total funds available in the Florida Education Finance Program by

708

the Legislature, including transportation. Total funding for each

709

charter school shall be recalculated during the year to reflect

710

the revised calculations under the Florida Education Finance

711

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

712

students reported by the charter school during the full-time

713

equivalent student survey periods designated by the Commissioner

714

of Education.

715

716

services to students funded by federal funds, any eligible

717

students enrolled in charter schools in the school district shall

718

be provided federal funds for the same level of service provided

719

students in the schools operated by the district school board.

720

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

721

schools shall receive all federal funding for which the school is

722

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

723

months after the charter school first opens and within 5 months

724

after any subsequent expansion of enrollment.

725

(d) District school boards shall make timely and efficient

726

payment and reimbursement to charter schools, including

727

processing paperwork required to access special state and federal

728

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

729

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

730

on the projected full-time equivalent student membership of the

731

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

732

student membership surveys shall be used in adjusting the amount

733

of funds distributed monthly to the charter school for the

734

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

735

later than 10 working days after the district school board

736

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

737

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

738

funding by the district school board, the school district shall

739

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

740

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

741

calculated on a daily basis on the unpaid balance from the

742

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

743

is issued.

744

(21) PUBLIC INFORMATION ON CHARTER SCHOOLS.--

745

(a) The Department of Education shall provide information

746

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

747

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

748

schools once they are created. This information shall include a

749

standard application format, charter format, and charter renewal

750

format which shall include the information specified in

751

subsection (7) and shall be developed by consulting and

752

negotiating with both school districts and charter schools before

753

implementation. These formats shall be used as guidelines by

754

charter school sponsors.

755

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

756

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

757

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

758

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

759

reported to alternative schools that receive a school improvement

760

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

761

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

762

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

763

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

764

statewide assessment test pursuant to s. 1008.22.

765

2. The charter school shall report the information in

766

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

767

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

768

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

769

the governing board of the charter school. This paragraph does

770

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

771

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

772

Educational Rights and Privacy Act.

773

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

774

Education shall compare the charter school student performance

775

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

776

performance data in traditional public schools in the district in

777

which the charter school is located and other charter schools in

778

the state. For charter alternative charter schools, the

779

department shall compare the student performance data described

780

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

781

comparative data shall be provided by the following grade

782

groupings:

783

(I) Grades 3 through 5;

784

(II) Grades 6 through 8; and

785

(III) Grades 9 through 11.

786

b. Each charter school shall provide the information in

787

this paragraph on its Internet website and also provide notice to

788

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

789

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

790

Board of Education shall adopt rules to administer the notice

791

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

792

120.54. The website shall include, through links or actual

793

content, other information related to school performance.

794

(23) ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt

795

of the annual report required by paragraph (9)(k) (9)(l), the

796

Department of Education shall provide to the State Board of

797

Education, the Commissioner of Education, the Governor, the

798

President of the Senate, and the Speaker of the House of

799

Representatives an analysis and comparison of the overall

800

performance of charter school students, to include all students

801

whose scores are counted as part of the statewide assessment

802

program, versus comparable public school students in the district

803

as determined by the statewide assessment program currently

804

administered in the school district, and other assessments

805

administered pursuant to s. 1008.22(3).

806

(24) RESTRICTION ON EMPLOYMENT OF RELATIVES.--

807

(a) This subsection applies to charter school personnel in

808

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

809

subsection, the term:

810

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

811

president, chairperson of the governing board of directors,

812

superintendent, governing board member, principal, assistant

813

principal, or any other person employed by the charter school

814

having equivalent decisionmaking authority and in whom is vested

815

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

816

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

817

individuals for appointment, employment, promotion, or

818

advancement in connection with employment in a charter school,

819

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

820

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

821

or advancement of individuals.

822

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

823

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

824

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

825

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

826

stepdaughter, stepbrother, stepsister, half brother, or half

827

sister.

828

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

829

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

830

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

831

school in which the personnel are serving or over which the

832

personnel exercises jurisdiction or control any individual who is

833

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

834

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

835

such appointment, employment, promotion, or advancement has been

836

advocated by charter school personnel who serve in or exercise

837

jurisdiction or control over the charter school and who is a

838

relative of the individual or if such appointment, employment,

839

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

840

a relative of the individual is a member.

841

842

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

843

Charter school personnel in schools operated by a municipality or

844

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

845

(25) STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--

846

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

847

including a charter school operated by a private entity, is

848

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

849

and 112.3143(3).

850

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

851

operated by a municipality or other public entity is subject to

852

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

853

financial interests.

854

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

855

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

856

1002.335, Florida Statutes, are amended to read:

857

1002.335 Florida Schools of Excellence Commission.--

858

(5) CHARTERING AUTHORITY.--

859

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

860

the commission only if the school district in which the FSE

861

charter school is to be located has not retained exclusive

862

authority to authorize charter schools as provided in paragraph

863

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

864

authority to authorize charter schools as provided in paragraph

865

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

866

concurrent authority to authorize charter schools and FSE charter

867

schools, respectively, to be located within the geographic

868

boundaries of the school district. The district school board

869

shall monitor and oversee all charter schools authorized by the

870

district school board pursuant to s. 1002.33. The commission

871

shall monitor and oversee all FSE charter schools sponsored by

872

the commission pursuant to subsection (4).

873

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

874

ability of a district school board to authorize charter schools

875

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

876

authority to reauthorize and to oversee any charter school that

877

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

878

is converted to an FSE charter school under this section.

879

880

thereafter, a district school board may seek to retain exclusive

881

authority to authorize charter schools within the geographic

882

boundaries of the school district by presenting to the State

883

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

884

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

885

resolution adopted by the district school board indicating the

886

intent to seek retain exclusive authority to authorize charter

887

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

888

authority to authorize charter schools by presenting to the state

889

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

890

establishment of the commission. The written resolution shall be

891

accompanied by a written description addressing the elements

892

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

893

provide a complete copy of the resolution, including the

894

description, to each charter school authorized by the district

895

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

896

the state board.

897

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

898

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

899

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

900

after the state board grants initial exclusive authority. The

901

notice shall be accompanied by a specific written description of

902

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

903

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

904

the notice of challenge to the district school board that has

905

been granted exclusive authority. The state board shall permit

906

the district school board the opportunity to appear and respond

907

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

908

determination upon the challenge within 60 days after receiving

909

the notice of challenge.

910

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

911

school board exclusive authority to authorize charter schools

912

within the geographic boundaries of the school district if the

913

state board determines, after adequate notice, in a public

914

hearing, and after receiving input from any charter school

915

authorized by the district school board, that the district school

916

board has provided fair and equitable treatment to its charter

917

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

918

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

919

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

920

include consideration of the following:

921

1. Compliance with the provisions of s. 1002.33.

922

2. Compliance with full and accurate accounting practices

923

and charges for central administrative overhead costs.

924

3. Compliance with requirements allowing a charter school,

925

at its discretion, to purchase certain services or a combination

926

of services at actual cost to the district.

927

4. The absence of a district school board moratorium

928

regarding charter schools or the absence of any districtwide

929

charter school enrollment limits.

930

5. Compliance with valid orders of the state board.

931

6. The provision of assistance to charter schools to meet

932

their facilities needs by including those needs in local bond

933

issues or otherwise providing available land and facilities that

934

are comparable to those provided to other public school students

935

in the same grade levels within the school district.

936

7. The distribution to charter schools authorized by the

937

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

938

grants received by the district school board, except for any

939

grant received for a particular purpose which, by its express

940

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

941

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

942

school that did not receive a proportionate share of such grant

943

proceeds.

944

8. The provision of adequate staff and other resources to

945

serve charter schools authorized by the district school board,

946

which services are provided by the district school board at a

947

cost to the charter schools that does not exceed their actual

948

cost to the district school board.

949

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

950

charter school enrollment limits, except as otherwise provided by

951

law.

952

10. The provision of an adequate number of educational

953

choice programs to serve students exercising their rights to

954

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

955

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

956

encourages chartering.

957

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

958

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

959

chapter 120 and shall be a final action subject to judicial

960

review by the district court of appeal.

961

(g) For district school boards that have no discernible

962

history of authorizing charter schools, the State Board of

963

Education may not grant exclusive authority unless the district

964

school board demonstrates that no approvable application has come

965

before the district school board.

966

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

967

Education shall continue so long as a district school board

968

continues to comply with this section and has presented a written

969

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

970

presumption exists that a district school board that has been

971

granted exclusive authority has continued to provide fair and

972

equitable treatment of the charter schools in its district.

973

2. A charter school authorized by a district school board

974

within the previous 4 years may challenge the presumption that

975

the district school board continues to provide fair and equitable

976

treatment of the charter schools in its district by filing a

977

request for a hearing between January 1 and January 31 of any

978

year. The request for a hearing shall state with specificity the

979

basis for the challenge and must include a statement certifying

980

that a copy of the request was provided to the district school

981

board. If a legally sufficient challenge is filed, the

982

Commissioner of Education shall designate a hearing officer and

983

refer the matter to the hearing officer for the conduct of an

984

informal proceeding. The hearing officer shall provide findings

985

of fact and conclusions of law to the Commissioner of Education

986

in the form of a recommended order to the State Board of

987

Education. The State Board of Education shall enter a final order

988

prior to June 30 determining whether the district school board

989

continues to provide fair and equitable treatment to the charter

990

schools in its district.

991

(i) Notwithstanding any other provision of this section to

992

the contrary, a district school board may permit the

993

establishment of one or more FSE charter schools within the

994

geographic boundaries of the school district by adopting a

995

favorable resolution and submitting the resolution to the State

996

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

997

rescinded by resolution of the district school board.

998

(7) COSPONSOR AGREEMENT.--

999

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

1000

cosponsor shall enter into an agreement that defines the

1001

cosponsor's rights and obligations and includes the following:

1002

1. An explanation of the personnel, contractual and

1003

interagency relationships, and potential revenue sources

1004

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

1005

2. Incorporation of the requirements of equal access for

1006

all students, including any plans to provide food service or

1007

transportation reasonably necessary to provide access to as many

1008

students as possible.

1009

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

1010

low-performing, gifted, or underserved student populations.

1011

4. An explanation of the academic and financial goals and

1012

expected outcomes for the cosponsor's charter schools and the

1013

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

1014

referenced in the application.

1015

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

1016

application.

1017

6. An explanation of the disposition of facilities and

1018

assets upon termination and dissolution of a charter school

1019

approved by the cosponsor.

1020

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

1021

before the commission and provide a report as to the information

1022

provided pursuant to s. 1002.33(9)(k) s. 1002.33(9)(l) for each

1023

of its charter schools.

1024

b. A provision requiring the cosponsor to perform the

1025

duties provided for in s. 1002.345.

1026

c. A provision requiring the governing board to perform the

1027

duties provided for in s. 1002.345, including monitoring the

1028

corrective action plan.

1029

8. A provision requiring that the cosponsor report the

1030

student enrollment in each of its sponsored charter schools to

1031

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

1032

located.

1033

9. A provision requiring that the cosponsor work with the

1034

commission to provide the necessary reports to the State Board of

1035

Education.

1036

10. Any other reasonable terms deemed appropriate by the

1037

commission given the unique characteristics of the cosponsor.

1038

(11) APPLICATION OF CHARTER SCHOOL STATUTE.--

1039

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

1040

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

1041

the cosponsors and charter schools approved pursuant to this

1042

section.

1043

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

1044

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

1045

shall maintain information systems, including, but not limited

1046

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

1047

information and data necessary for parents to make informed

1048

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

1049

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

1050

parents with information on its accountability standards, links

1051

to schools of excellence throughout the state, and public

1052

education programs available in the state.

1053

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

1054

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

1055

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

1056

1002.34 Charter technical career centers.--

1057

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

1058

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

1059

submitted by a sponsor or another organization that is

1060

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

1061

appropriate. However, an independent school is not eligible for

1062

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

1063

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

1064

district school board and community college board of trustees in

1065

whose geographic region the facility is located. If a charter

1066

technical career center is established by the conversion to

1067

charter status of a public technical center formerly governed by

1068

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

1069

precedence in any question of governance. The governance of the

1070

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

1071

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

1072

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

1073

conversion charter technical career center is not affected by a

1074

change in the governance of public technical centers or of

1075

programs within other centers that are or have been governed by

1076

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

1077

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

1078

school board and transferred to a community college prior to the

1079

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

1080

applicant who wishes to establish a center must submit to the

1081

district school board or community college board of trustees, or

1082

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

1083

developed by the Department of Education which that includes:

1084

(a) The name of the proposed center.

1085

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

1086

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

1087

the qualifications for and method of their appointment or

1088

election.

1089

1090

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

1091

assessing the extent to which the outcomes are met.

1092

(d) The admissions policy and criteria for evaluating the

1093

admission of students.

1094

(e) A description of the staff responsibilities and the

1095

proposed qualifications of the teaching staff.

1096

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

1097

ensure significant involvement of representatives of business and

1098

industry in the operation of the center.

1099

(g) A method for determining whether a student has

1100

satisfied the requirements for graduation specified in s. 1003.43

1101

and for completion of a postsecondary certificate or degree.

1102

(h) A method for granting secondary and postsecondary

1103

diplomas, certificates, and degrees.

1104

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

1105

in which the center will be located.

1106

(j) A method of resolving conflicts between the governing

1107

body of the center and the sponsor and between consortium

1108

members, if applicable.

1109

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

1110

and rule.

1111

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

1112

training provided by the Department of Education.

1113

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

1114

technical career center who are related to the center owner,

1115

president, chairperson of the governing board of directors,

1116

superintendent, governing board member, principal, assistant

1117

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

1118

equivalent decisionmaking authority. As used in this paragraph,

1119

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

1120

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

1121

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

1122

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

1123

stepdaughter, stepbrother, stepsister, half brother, or half

1124

sister.

1125

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

1126

board or community college board of trustees.

1127

1128

Students at a center must meet the same testing and academic

1129

performance standards as those established by law and rule for

1130

students at public schools and public technical centers. The

1131

students must also meet any additional assessment indicators that

1132

are included within the charter approved by the district school

1133

board or community college board of trustees.

1134

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

1135

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

1136

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

1137

the application using an evaluation instrument developed by the

1138

Department of Education and make a final decision on whether to

1139

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

1140

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

1141

certain actions or maintaining certain conditions. Such actions

1142

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

1143

district school board or community college board of trustees is

1144

not required to issue a charter to any person.

1145

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

1146

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

1147

sponsor a center in the county in which the board has

1148

jurisdiction.

1149

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

1150

for training and technical assistance to applicants in developing

1151

business plans and estimating costs and income. This assistance

1152

shall address estimating startup costs, projecting enrollment,

1153

and identifying the types and amounts of state and federal

1154

financial assistance the center will be eligible to receive. The

1155

training shall include instruction in accurate financial planning

1156

and good business practices.

1157

2. An applicant must participate in the training provided

1158

by the Department of Education prior to filing an application.

1159

The Department of Education may provide technical assistance to

1160

an applicant upon written request.

1161

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

1162

progress toward charter goals and shall monitor the center's

1163

revenues and expenditures. The sponsor shall perform the duties

1164

provided for in s. 1002.345.

1165

(10) EXEMPTION FROM STATUTES.--

1166

1167

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

1168

relating to the employment of relatives.

1169

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

1170

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

1171

school, including budgeting, curriculum, and operating

1172

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

1173

directors is responsible for performing the duties provided for

1174

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

1175

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

1176

1002.33(25).

1177

Section 9. Section 1002.345, Florida Statutes, is created

1178

to read:

1179

1002.345 Determination of financial weaknesses and

1180

financial emergencies for charter schools and charter technical

1181

career centers.--This section applies to charter schools

1182

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

1183

technical career centers operating pursuant to s. 1002.34.

1184

(1) FINANCIAL WEAKNESS; REQUIREMENTS.--

1185

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

1186

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

1187

one of the following conditions occurs:

1188

1. An end-of-year financial deficit.

1189

2. A substantial decline in student enrollment without a

1190

commensurate reduction in expenses.

1191

3. Insufficient revenues to pay current operating expenses.

1192

4. Insufficient revenues to pay long-term expenses.

1193

5. Disproportionate administrative expenses.

1194

6. Excessive debt.

1195

7. Excessive expenditures.

1196

8. Inadequate fund balances or reserves.

1197

9. Failure to meet financial reporting requirements

1198

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

1199

1002.34(14).

1200

10. Weak financial controls or other adverse financial

1201

conditions identified through an internal audit or annual audit

1202

conducted pursuant to s. 218.39.

1203

11. Negative financial findings cited in reports by the

1204

Auditor General or the Office of Program Policy Analysis and

1205

Government Accountability.

1206

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

1207

working days when one or more of the conditions specified in

1208

paragraph (a) occur.

1209

1210

corrective action plan and file the plan with the Commissioner of

1211

Education and the Florida Schools of Excellence Commission within

1212

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

1213

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

1214

Education shall determine the components of the plan. The

1215

governing board shall implement the plan.

1216

(d) The governing board shall include the corrective action

1217

plan and the status of its implementation in the annual progress

1218

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

1219

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

1220

(e) If the governing board fails to implement the

1221

corrective action plan within 1 year, the State Board of

1222

Education shall prescribe any steps necessary for the charter

1223

school or the charter technical career center to comply with

1224

state requirements.

1225

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

1226

before the State Board of Education and report on the

1227

implementation of the State Board of Education's requirements.

1228

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

1229

ASSETS; REQUIREMENTS.--

1230

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

1231

shall provide for a certified public accountant or auditor to

1232

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

1233

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

1234

annual financial audit of a charter school or charter technical

1235

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

1236

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

1237

if a charter school or charter technical career center has a

1238

deficit fund balance or deficit net assets, the auditor must

1239

notify the governing board of the charter school or charter

1240

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

1241

Commissioner of Education.

1242

1243

accountant or auditor in accordance with s. 218.39 reveals that

1244

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

1245

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

1246

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

1247

the financial audit to the governing board of the charter school

1248

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

1249

and the Commissioner of Education within 7 working days after the

1250

finding is made.

1251

1. The internal auditor shall:

1252

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

1253

with the principal or the principal administrator of the charter

1254

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

1255

appropriate, and the chair of the governing board within 7

1256

working days after the finding is made.

1257

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

1258

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

1259

working days after the exit interview.

1260

2. When the charter school or charter technical career

1261

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

1262

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

1263

center shall file a detailed financial recovery plan as provided

1264

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

1265

notified by the Commissioner of Education that a financial

1266

recovery plan is needed.

1267

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

1268

plan with the Commissioner of Education and the Florida Schools

1269

of Excellence Commission.

1270

(e) The governing board shall include the financial

1271

recovery plan and the status of its implementation in the annual

1272

progress report to the sponsor which is required under s.

1273

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

1274

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

1275

report to the State Board of Education each charter school and

1276

charter technical career center that is subject to a financial

1277

recovery plan or a corrective action plan under this section.

1278

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

1279

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

1280

recovery and corrective action plans.

1281

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

1282

shall provide technical assistance to charter schools, charter

1283

technical career centers, governing boards, and sponsors in

1284

developing financial recovery and corrective action plans.

1285

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

1286

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

1287

school or charter technical career center fails to correct the

1288

deficiencies in the corrective action plan within 1 year or

1289

exhibits one or more financial emergency conditions as provided

1290

in s. 218.503 for 2 consecutive years.

1291

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

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