Florida Senate - 2008 CS for CS for SB 1652

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

602-05462-08 20081652c2

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A bill to be entitled

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

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

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the Auditor General; conforming provisions related to

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changes in the entities subject to a state of financial

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

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providing that charter technical career centers are

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subject to certain requirements in the event of a

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financial emergency; requiring that the sponsor be

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notified of certain conditions; providing for the

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development of a financial recovery plan, which may be

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approved by the Commissioner of Education; amending s.

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

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sponsors and governing boards when charter schools and

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charter technical career centers experience a financial

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weakness or a financial emergency; specifying forms to be

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used by charter school applicants and sponsors; requiring

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applicant training and documentation; deleting the

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auditing requirements and financial emergency provisions

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for charter schools; requiring charters schools to

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disclose the identity of relatives of charter school

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personnel; providing that the immediate termination of a

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charter is exempt from requirements for an informal

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hearing or for a hearing under ch. 120, F.S.; providing

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for a limitation on funding; providing for the disclosure

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of the performance of charter schools that are not given a

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school grade or school improvement rating; revising the

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requirements for providing information to the public on

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how to form and operate a charter school; providing

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reporting requirements; providing restrictions for the

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employment of relatives by charter school personnel;

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providing that members of a charter school governing board

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are subject to certain standards of conduct specified in

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ss. 112.313 and 112.3143, F.S.; amending s. 1002.335,

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F.S.; eliminating the requirement for district school

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boards to annually seek continued exclusivity from the

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State Board of Education; providing for challenges to the

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exclusivity of district school boards; providing a

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presumption for district school boards that are granted

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exclusivity; providing for informal hearings; specifying

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additional components of cosponsor agreements; amending s.

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1002.34, F.S.; providing additional duties for charter

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technical career centers, applicants, sponsors, and

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governing boards; requiring the Department of Education to

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offer or arrange training and assistance to applicants for

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a charter technical career center; requiring that an

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applicant participate in the training; creating s.

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1002.345, F.S.; establishing criteria and requirements for

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charter schools and charter technical career centers that

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have financial weaknesses or are in a state of financial

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emergency; establishing requirements for charter schools,

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charter technical career centers, governing bodies, and

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sponsors; requiring financial audits of charter schools

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and charter technical career centers; providing for

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corrective action and financial recovery plans; providing

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for duties of auditors, the Commissioner of Education, and

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the Department of Education; requiring the State Board of

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Education to adopt rules; providing grounds for

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termination or nonrenewal of a charter; providing an

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effective date.

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

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

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

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

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     (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--

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

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Commissioner of Education, as appropriate, and the Legislative

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Auditing Committee of any audit report reviewed by the Auditor

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

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a local governmental entity, charter school, charter technical

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

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

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requests a clarification regarding information included in an

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audit report to determine whether a local governmental entity,

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charter school, charter technical career center, or district

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

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s. 218.503, the requested clarification must be provided within

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

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entity, charter school, charter technical career center, or

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

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request, the Auditor General shall notify the Legislative

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Auditing Committee. If, after obtaining the requested

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clarification, the Auditor General determines that the local

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governmental entity, charter school, charter technical career

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

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

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Governor or the Commissioner of Education, as appropriate, and

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the Legislative Auditing Committee.

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

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consultation with the Board of Accountancy, shall adopt rules for

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the form and conduct of all financial audits performed by

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independent certified public accountants pursuant to ss. 215.981,

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

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local governmental entities, charter schools, charter school

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technical career centers, and district school boards must

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

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of information necessary to carry out the purposes of the Local

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Governmental Entity, Charter School, Charter Technical Career

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Center, and District School Board Financial Emergencies Act as

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stated in s. 218.501.

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     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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     (c)  Failure to transfer at the appropriate time, due to

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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, charter school technical

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career center, or 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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     (c) The Commissioner of Education shall determine if the

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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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paragraph (d) of subsection (8), paragraphs (g) through (q) of

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subsection (9), and subsections (17), (21), and (23) of section

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1002.33, Florida Statutes, are amended, present subsection (24)

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of that section is redesignated as subsection (26), and a new

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subsection (24) and subsection (25) are added to that section, to

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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 model application

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form prepared by the Department of Education, in conjunction with

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the Florida Schools 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 required in subparagraph (g)2. A sponsor may require an

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applicant to provide additional information as an addendum to the

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charter school application as described in this paragraph.

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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. A sponsor may require an applicant to

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provide additional information as an addendum to this evaluation

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instrument. Beginning with the 2007-2008 school year, a sponsor

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shall receive and consider charter school applications received

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on or before August 1 of each calendar year for charter schools

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to be opened at the beginning of the school district's next

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school year, or to be opened at a time agreed to by the applicant

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and the sponsor. A sponsor may receive applications later than

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this date if it chooses. A sponsor may not charge an applicant

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for a charter any fee for the processing or consideration of an

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application, and a sponsor may not base its consideration or

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approval of an application upon the promise of future payment of

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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. However, a sponsor may require the charter school

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applicant to attend training provided by the sponsor in lieu of

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the department's training if the sponsor's training standards

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meet or exceed the standards developed by the Department of

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Education. The training shall include instruction in accurate

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financial planning and good business practices. In addition to

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the applicant, if the applicant is a management company or other

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nonprofit organization, the charter school principal and the

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chief financial officer must also participate in the training.

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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

500

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

501

to long-term financial resources for charter school construction,

502

charter schools that are operated by a municipality or other

503

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

504

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

505

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

506

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

507

financial resources for charter school construction, charter

508

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

509

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

510

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

511

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

512

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

513

the provisions set forth in subsection (8).

514

     13.  The facilities to be used and their location.

515

     14.  The qualifications to be required of the teachers and

516

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

517

qualified staff to achieve best value.

518

     15.  The governance structure of the school, including the

519

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

520

required in paragraph (12)(i).

521

     16.  A timetable for implementing the charter which

522

addresses the implementation of each element thereof and the date

523

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

524

timetable.

525

     17.  In the case of an existing public school being

526

converted to charter status, alternative arrangements for current

527

students who choose not to attend the charter school and for

528

current teachers who choose not to teach in the charter school

529

after conversion in accordance with the existing collective

530

bargaining agreement or district school board rule in the absence

531

of a collective bargaining agreement. However, alternative

532

arrangements shall not be required for current teachers who

533

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

534

by the employment policies of the state university which grants

535

the charter to the lab school.

536

     18. Full disclosure of the identity of all relatives

537

employed by the charter school who are related to the charter

538

school owner, president, chairperson of the governing board of

539

directors, superintendent, governing board member, principal,

540

assistant principal, or any other person employed by the charter

541

school having equivalent decisionmaking authority. For the

542

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

543

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

544

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

545

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

546

stepfather, stepmother, stepson, stepdaughter, stepbrother,

547

stepsister, half brother, or half sister.

548

     (8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--

549

     (d)  A charter may be terminated immediately if the sponsor

550

determines that good cause has been shown or if the health,

551

safety, or welfare of the students is threatened. The sponsor's

552

determination is not subject to an informal hearing under

553

paragraph (b) or pursuant to chapter 120. The sponsor shall

554

notify in writing the charter school's governing body, the

555

charter school principal, and the department if a charter is

556

immediately terminated. The sponsor shall clearly identify the

557

specific issues that resulted in the immediate termination and

558

provide evidence of prior notification of issues resulting in the

559

immediate termination when appropriate. The school district in

560

which the charter school is located shall assume operation of the

561

school under these circumstances. The charter school's governing

562

board may, within 30 days after receiving the sponsor's decision

563

to terminate the charter, appeal the decision pursuant to the

564

procedure established in subsection (6).

565

     (9)  CHARTER SCHOOL REQUIREMENTS.--

566

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

567

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

568

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

569

conducted by a certified public accountant or auditor in

570

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

571

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

572

state of financial emergency exists. When a charter school is

573

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

574

public accountant or auditor, the charter school must file a

575

detailed financial recovery plan with the sponsor within 30 days

576

after receipt of the audit.

577

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

578

comparable to that reported for other public schools, charter

579

schools are to maintain all financial records which constitute

580

their accounting system:

581

     1.  In accordance with the accounts and codes prescribed in

582

the most recent issuance of the publication titled "Financial and

583

Program Cost Accounting and Reporting for Florida Schools"; or

584

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

585

a charter school may elect to follow generally accepted

586

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

587

reformat this information for reporting according to this

588

paragraph.

589

590

Charter schools shall provide annual financial report and program

591

cost report information in the state-required formats for

592

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

593

Charter schools that are operated by a municipality or are a

594

component unit of a parent nonprofit organization may use the

595

accounting system of the municipality or the parent but must

596

reformat this information for reporting according to this

597

paragraph. A charter school shall provide monthly financial

598

statements to the sponsor.

599

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

600

annually adopt and maintain an operating budget.

601

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

602

exercise continuing oversight over charter school operations.

603

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

604

responsible for:

605

     1.  Ensuring that the charter school has retained the

606

services of a certified public accountant or auditor for the

607

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

608

who shall submit the report to the governing body.

609

     2.  Reviewing and approving the audit report, including

610

audit findings and recommendations for the financial recovery

611

plan.

612

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

613

including monitoring a corrective action plan.

614

     b. Monitoring a financial recovery plan in order to ensure

615

compliance.

616

     4.  Participating in governance training approved by the

617

department that must include government in the sunshine,

618

conflicts of interest, ethics, and financial responsibility.

619

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

620

report its progress annually to its sponsor, which shall forward

621

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

622

other annual school accountability reports. The Department of

623

Education shall develop a uniform, online annual accountability

624

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

625

easy to utilize and contain demographic information, student

626

performance data, and financial accountability information. A

627

charter school shall not be required to provide information and

628

data that is duplicative and already in the possession of the

629

department. The Department of Education shall include in its

630

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

631

the deadline established by the department. The report shall

632

include at least the following components:

633

     1.  Student achievement performance data, including the

634

information required for the annual school report and the

635

education accountability system governed by ss. 1008.31 and

636

1008.345. Charter schools are subject to the same accountability

637

requirements as other public schools, including reports of

638

student achievement information that links baseline student data

639

to the school's performance projections identified in the

640

charter. The charter school shall identify reasons for any

641

difference between projected and actual student performance.

642

     2.  Financial status of the charter school which must

643

include revenues and expenditures at a level of detail that

644

allows for analysis of the ability to meet financial obligations

645

and timely repayment of debt.

646

     3.  Documentation of the facilities in current use and any

647

planned facilities for use by the charter school for instruction

648

of students, administrative functions, or investment purposes.

649

     4.  Descriptive information about the charter school's

650

personnel, including salary and benefit levels of charter school

651

employees, the proportion of instructional personnel who hold

652

professional or temporary certificates, and the proportion of

653

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

654

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

655

secured by tax revenues.

656

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

657

least the number of days required by law for other public

658

schools, and may provide instruction for additional days.

659

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

660

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

661

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

662

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

663

concerning each contract component having noted deficiencies. The

664

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

665

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

666

address its deficiencies.

667

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

668

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

669

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

670

sponsor's staff shall require the director and a representative

671

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

672

school improvement plan to raise student achievement and to

673

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

674

school improvement plan that the charter school will implement in

675

the following school year. The sponsor may also consider the

676

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

677

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

678

of Education shall offer technical assistance and training to the

679

charter school and its governing body and establish guidelines

680

for developing, submitting, and approving such plans.

681

     1.  If the charter school fails to improve its student

682

performance from the year immediately prior to the implementation

683

of the school improvement plan, the sponsor shall place the

684

charter school on probation and shall require the charter school

685

governing body to take one of the following corrective actions:

686

     a.  Contract for the educational services of the charter

687

school;

688

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

689

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

690

staff and implement a plan that addresses the causes of

691

inadequate progress; or

692

     c.  Reconstitute the charter school.

693

     2.  A charter school that is placed on probation shall

694

continue the corrective actions required under subparagraph 1.

695

until the charter school improves its student performance from

696

the year prior to the implementation of the school improvement

697

plan.

698

     3.  Notwithstanding any provision of this paragraph, the

699

sponsor may terminate the charter at any time pursuant to the

700

provisions of subsection (8).

701

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

702

body of a graded charter school that has submitted a school

703

improvement plan or has been placed on probation under paragraph

704

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

705

least once a year to present information regarding the corrective

706

strategies that are being implemented by the school pursuant to

707

the school improvement plan. The sponsor shall communicate at the

708

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

709

the school to help the school address its deficiencies.

710

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

711

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

712

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

713

enrolled in other public schools in the school district. Funding

714

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

715

maximum number of students eligible to be funded in any classroom

716

of any charter school shall be the maximum number prescribed by

717

law.

718

     (a)  Each charter school shall report its student enrollment

719

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

720

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

721

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

722

enrollment. All charter schools submitting student record

723

information required by the Department of Education shall comply

724

with the Department of Education's guidelines for electronic data

725

formats for such data, and all districts shall accept electronic

726

data that complies with the Department of Education's electronic

727

format.

728

     (b)  The basis for the agreement for funding students

729

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

730

district's operating funds from the Florida Education Finance

731

Program as provided in s. 1011.62 and the General Appropriations

732

Act, including gross state and local funds, discretionary lottery

733

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

734

discretionary millage levy; divided by total funded weighted

735

full-time equivalent students in the school district; multiplied

736

by the weighted full-time equivalent students for the charter

737

school. Charter schools whose students or programs meet the

738

eligibility criteria in law shall be entitled to their

739

proportionate share of categorical program funds included in the

740

total funds available in the Florida Education Finance Program by

741

the Legislature, including transportation. Total funding for each

742

charter school shall be recalculated during the year to reflect

743

the revised calculations under the Florida Education Finance

744

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

745

students reported by the charter school during the full-time

746

equivalent student survey periods designated by the Commissioner

747

of Education.

748

     (c)  If the district school board is providing programs or

749

services to students funded by federal funds, any eligible

750

students enrolled in charter schools in the school district shall

751

be provided federal funds for the same level of service provided

752

students in the schools operated by the district school board.

753

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

754

schools shall receive all federal funding for which the school is

755

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

756

months after the charter school first opens and within 5 months

757

after any subsequent expansion of enrollment.

758

     (d)  District school boards shall make timely and efficient

759

payment and reimbursement to charter schools, including

760

processing paperwork required to access special state and federal

761

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

762

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

763

on the projected full-time equivalent student membership of the

764

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

765

student membership surveys shall be used in adjusting the amount

766

of funds distributed monthly to the charter school for the

767

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

768

later than 10 working days after the district school board

769

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

770

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

771

funding by the district school board, the school district shall

772

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

773

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

774

calculated on a daily basis on the unpaid balance from the

775

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

776

is issued.

777

     (21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--

778

     (a) The Department of Education shall provide information

779

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

780

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

781

schools once they are created. This information shall include a

782

standard application format, charter format, evaluation

783

instrument, and charter renewal format, which shall include the

784

information specified in subsection (7) and shall be developed by

785

consulting and negotiating with both school districts, the

786

Florida Schools of Excellence Commission, and charter schools

787

before implementation. The charter and charter renewal These

788

formats shall be used as guidelines by charter school sponsors.

789

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

790

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

791

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

792

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

793

reported to alternative schools that receive a school improvement

794

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

795

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

796

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

797

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

798

statewide assessment test pursuant to s. 1008.22.

799

     2. The charter school shall report the information in

800

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

801

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

802

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

803

the governing board of the charter school. This paragraph does

804

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

805

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

806

Educational Rights and Privacy Act.

807

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

808

Education shall compare the charter school student performance

809

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

810

performance data in traditional public schools in the district in

811

which the charter school is located and other charter schools in

812

the state. For alternative charter schools, the department shall

813

compare the student performance data described in this paragraph

814

with all alternative schools in the state. The comparative data

815

shall be provided by the following grade groupings:

816

     (I) Grades 3 through 5;

817

     (II) Grades 6 through 8; and

818

     (III) Grades 9 through 11.

819

     b. Each charter school shall provide the information in

820

this paragraph on its Internet website and also provide notice to

821

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

822

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

823

Board of Education shall adopt rules to administer the notice

824

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

825

120.54. The website shall include, through links or actual

826

content, other information related to school performance.

827

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

828

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

829

Department of Education shall provide to the State Board of

830

Education, the Commissioner of Education, the Governor, the

831

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

832

Representatives an analysis and comparison of the overall

833

performance of charter school students, to include all students

834

whose scores are counted as part of the statewide assessment

835

program, versus comparable public school students in the district

836

as determined by the statewide assessment program currently

837

administered in the school district, and other assessments

838

administered pursuant to s. 1008.22(3).

839

     (24) RESTRICTION ON EMPLOYMENT OF RELATIVES.--

840

     (a) This subsection applies to charter school personnel in

841

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

842

subsection, the term:

843

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

844

president, chairperson of the governing board of directors,

845

superintendent, governing board member, principal, assistant

846

principal, or any other person employed by the charter school

847

having equivalent decisionmaking authority and in whom is vested

848

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

849

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

850

individuals for appointment, employment, promotion, or

851

advancement in connection with employment in a charter school,

852

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

853

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

854

or advancement of individuals.

855

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

856

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

857

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

858

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

859

stepdaughter, stepbrother, stepsister, half brother, or half

860

sister.

861

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

862

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

863

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

864

school in which the personnel are serving or over which the

865

personnel exercises jurisdiction or control any individual who is

866

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

867

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

868

such appointment, employment, promotion, or advancement has been

869

advocated by charter school personnel who serve in or exercise

870

jurisdiction or control over the charter school and who is a

871

relative of the individual or if such appointment, employment,

872

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

873

a relative of the individual is a member.

874

     (c) Mere approval of budgets does not constitute

875

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

876

Charter school personnel in schools operated by a municipality or

877

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

878

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

879

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

880

including a charter school operated by a private entity, is

881

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

882

and 112.3143(3).

883

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

884

operated by a municipality or other public entity is subject to

885

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

886

financial interests.

887

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

888

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

889

1002.335, Florida Statutes, are amended to read:

890

     1002.335  Florida Schools of Excellence Commission.--

891

     (5)  CHARTERING AUTHORITY.--

892

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

893

the commission only if the school district in which the FSE

894

charter school is to be located has not retained exclusive

895

authority to authorize charter schools as provided in paragraph

896

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

897

authority to authorize charter schools as provided in paragraph

898

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

899

concurrent authority to authorize charter schools and FSE charter

900

schools, respectively, to be located within the geographic

901

boundaries of the school district. The district school board

902

shall monitor and oversee all charter schools authorized by the

903

district school board pursuant to s. 1002.33. The commission

904

shall monitor and oversee all FSE charter schools sponsored by

905

the commission pursuant to subsection (4).

906

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

907

ability of a district school board to authorize charter schools

908

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

909

authority to reauthorize and to oversee any charter school that

910

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

911

is converted to an FSE charter school under this section.

912

     (c)  For fiscal year 2007-2008 and for each fiscal year

913

thereafter, a district school board may seek to retain exclusive

914

authority to authorize charter schools within the geographic

915

boundaries of the school district by presenting to the State

916

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

917

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

918

resolution adopted by the district school board indicating the

919

intent to seek retain exclusive authority to authorize charter

920

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

921

authority to authorize charter schools by presenting to the state

922

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

923

establishment of the commission. The written resolution shall be

924

accompanied by a written description addressing the elements

925

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

926

provide a complete copy of the resolution, including the

927

description, to each charter school authorized by the district

928

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

929

the state board.

930

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

931

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

932

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

933

after the state board grants initial exclusive authority. The

934

notice shall be accompanied by a specific written description of

935

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

936

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

937

the notice of challenge to the district school board that has

938

been granted exclusive authority. The state board shall permit

939

the district school board the opportunity to appear and respond

940

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

941

determination upon the challenge within 60 days after receiving

942

the notice of challenge.

943

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

944

school board exclusive authority to authorize charter schools

945

within the geographic boundaries of the school district if the

946

state board determines, after adequate notice, in a public

947

hearing, and after receiving input from any charter school

948

authorized by the district school board, that the district school

949

board has provided fair and equitable treatment to its charter

950

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

951

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

952

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

953

include consideration of the following:

954

     1.  Compliance with the provisions of s. 1002.33.

955

     2.  Compliance with full and accurate accounting practices

956

and charges for central administrative overhead costs.

957

     3.  Compliance with requirements allowing a charter school,

958

at its discretion, to purchase certain services or a combination

959

of services at actual cost to the district.

960

     4.  The absence of a district school board moratorium

961

regarding charter schools or the absence of any districtwide

962

charter school enrollment limits.

963

     5.  Compliance with valid orders of the state board.

964

     6.  The provision of assistance to charter schools to meet

965

their facilities needs by including those needs in local bond

966

issues or otherwise providing available land and facilities that

967

are comparable to those provided to other public school students

968

in the same grade levels within the school district.

969

     7.  The distribution to charter schools authorized by the

970

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

971

grants received by the district school board, except for any

972

grant received for a particular purpose which, by its express

973

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

974

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

975

school that did not receive a proportionate share of such grant

976

proceeds.

977

     8.  The provision of adequate staff and other resources to

978

serve charter schools authorized by the district school board,

979

which services are provided by the district school board at a

980

cost to the charter schools that does not exceed their actual

981

cost to the district school board.

982

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

983

charter school enrollment limits, except as otherwise provided by

984

law.

985

     10.  The provision of an adequate number of educational

986

choice programs to serve students exercising their rights to

987

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

988

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

989

encourages chartering.

990

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

991

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

992

chapter 120 and shall be a final action subject to judicial

993

review by the district court of appeal.

994

     (g)  For district school boards that have no discernible

995

history of authorizing charter schools, the State Board of

996

Education may not grant exclusive authority unless the district

997

school board demonstrates that no approvable application has come

998

before the district school board.

999

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

1000

Education shall continue so long as a district school board

1001

continues to comply with this section and has presented a written

1002

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

1003

presumption exists that a district school board that has been

1004

granted exclusive authority has continued to provide fair and

1005

equitable treatment of the charter schools in its district.

1006

     2. A charter school authorized by a district school board

1007

within the previous 4 years may challenge the presumption that

1008

the district school board continues to provide fair and equitable

1009

treatment of the charter schools in its district by filing a

1010

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

1011

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

1012

basis for the challenge and must include a statement certifying

1013

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

1014

board. If a legally sufficient challenge is filed, the

1015

Commissioner of Education shall designate a hearing officer and

1016

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

1017

informal proceeding. The hearing officer shall provide findings

1018

of fact and conclusions of law to the Commissioner of Education

1019

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

1020

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

1021

prior to June 30 determining whether the district school board

1022

continues to provide fair and equitable treatment to the charter

1023

schools in its district.

1024

     (i)  Notwithstanding any other provision of this section to

1025

the contrary, a district school board may permit the

1026

establishment of one or more FSE charter schools within the

1027

geographic boundaries of the school district by adopting a

1028

favorable resolution and submitting the resolution to the State

1029

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

1030

rescinded by resolution of the district school board.

1031

     (7)  COSPONSOR AGREEMENT.--

1032

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

1033

cosponsor shall enter into an agreement that defines the

1034

cosponsor's rights and obligations and includes the following:

1035

     1.  An explanation of the personnel, contractual and

1036

interagency relationships, and potential revenue sources

1037

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

1038

     2.  Incorporation of the requirements of equal access for

1039

all students, including any plans to provide food service or

1040

transportation reasonably necessary to provide access to as many

1041

students as possible.

1042

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

1043

low-performing, gifted, or underserved student populations.

1044

     4.  An explanation of the academic and financial goals and

1045

expected outcomes for the cosponsor's charter schools and the

1046

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

1047

referenced in the application.

1048

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

1049

application.

1050

     6.  An explanation of the disposition of facilities and

1051

assets upon termination and dissolution of a charter school

1052

approved by the cosponsor.

1053

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

1054

before the commission and provide a report as to the information

1055

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

1056

of its charter schools.

1057

     b. A provision requiring the cosponsor to perform the

1058

duties provided for in s. 1002.345.

1059

     c. A provision requiring the governing board to perform the

1060

duties provided for in s. 1002.345, including monitoring the

1061

corrective action plan.

1062

     8.  A provision requiring that the cosponsor report the

1063

student enrollment in each of its sponsored charter schools to

1064

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

1065

located.

1066

     9.  A provision requiring that the cosponsor work with the

1067

commission to provide the necessary reports to the State Board of

1068

Education.

1069

     10.  Any other reasonable terms deemed appropriate by the

1070

commission given the unique characteristics of the cosponsor.

1071

     (11)  APPLICATION OF CHARTER SCHOOL STATUTE.--

1072

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

1073

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

1074

the cosponsors and charter schools approved pursuant to this

1075

section.

1076

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

1077

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

1078

shall maintain information systems, including, but not limited

1079

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

1080

information and data necessary for parents to make informed

1081

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

1082

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

1083

parents with information on its accountability standards, links

1084

to schools of excellence throughout the state, and public

1085

education programs available in the state.

1086

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

1087

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

1088

subsection (13) of section 1002.34, Florida Statutes, are amended

1089

to read:

1090

     1002.34  Charter technical career centers.--

1091

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

1092

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

1093

submitted by a sponsor or another organization that is

1094

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

1095

appropriate. However, an independent school is not eligible for

1096

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

1097

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

1098

district school board and community college board of trustees in

1099

whose geographic region the facility is located. If a charter

1100

technical career center is established by the conversion to

1101

charter status of a public technical center formerly governed by

1102

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

1103

precedence in any question of governance. The governance of the

1104

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

1105

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

1106

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

1107

conversion charter technical career center is not affected by a

1108

change in the governance of public technical centers or of

1109

programs within other centers that are or have been governed by

1110

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

1111

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

1112

school board and transferred to a community college prior to the

1113

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

1114

applicant who wishes to establish a center must submit to the

1115

district school board or community college board of trustees, or

1116

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

1117

developed by the Department of Education which that includes:

1118

     (a)  The name of the proposed center.

1119

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

1120

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

1121

the qualifications for and method of their appointment or

1122

election.

1123

     (c)  The workforce development goals of the center, the

1124

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

1125

assessing the extent to which the outcomes are met.

1126

     (d)  The admissions policy and criteria for evaluating the

1127

admission of students.

1128

     (e)  A description of the staff responsibilities and the

1129

proposed qualifications of the teaching staff.

1130

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

1131

ensure significant involvement of representatives of business and

1132

industry in the operation of the center.

1133

     (g)  A method for determining whether a student has

1134

satisfied the requirements for graduation specified in s. 1003.43

1135

and for completion of a postsecondary certificate or degree.

1136

     (h)  A method for granting secondary and postsecondary

1137

diplomas, certificates, and degrees.

1138

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

1139

in which the center will be located.

1140

     (j)  A method of resolving conflicts between the governing

1141

body of the center and the sponsor and between consortium

1142

members, if applicable.

1143

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

1144

and rule.

1145

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

1146

training provided by the Department of Education.

1147

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

1148

technical career center who are related to the center owner,

1149

president, chairperson of the governing board of directors,

1150

superintendent, governing board member, principal, assistant

1151

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

1152

equivalent decisionmaking authority. As used in this paragraph,

1153

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

1154

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

1155

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

1156

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

1157

stepdaughter, stepbrother, stepsister, half brother, or half

1158

sister.

1159

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

1160

board or community college board of trustees.

1161

1162

Students at a center must meet the same testing and academic

1163

performance standards as those established by law and rule for

1164

students at public schools and public technical centers. The

1165

students must also meet any additional assessment indicators that

1166

are included within the charter approved by the district school

1167

board or community college board of trustees.

1168

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

1169

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

1170

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

1171

the application using an evaluation instrument developed by the

1172

Department of Education and make a final decision on whether to

1173

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

1174

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

1175

certain actions or maintaining certain conditions. Such actions

1176

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

1177

district school board or community college board of trustees is

1178

not required to issue a charter to any person.

1179

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

1180

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

1181

sponsor a center in the county in which the board has

1182

jurisdiction.

1183

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

1184

for training and technical assistance to applicants in developing

1185

business plans and estimating costs and income. This assistance

1186

shall address estimating startup costs, projecting enrollment,

1187

and identifying the types and amounts of state and federal

1188

financial assistance the center will be eligible to receive. The

1189

training shall include instruction in accurate financial planning

1190

and good business practices.

1191

     2. An applicant must participate in the training provided

1192

by the Department of Education prior to filing an application.

1193

The Department of Education may provide technical assistance to

1194

an applicant upon written request.

1195

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

1196

progress toward charter goals and shall monitor the center's

1197

revenues and expenditures. The sponsor shall perform the duties

1198

provided for in s. 1002.345.

1199

     (10)  EXEMPTION FROM STATUTES.--

1200

     (c)  A center must comply with the antidiscrimination

1201

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

1202

relating to the employment of relatives.

1203

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

1204

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

1205

school, including budgeting, curriculum, and operating

1206

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

1207

directors is responsible for performing the duties provided for

1208

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

1209

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

1210

1002.33(25).

1211

     Section 9.  Section 1002.345, Florida Statutes, is created

1212

to read:

1213

     1002.345 Determination of financial weaknesses and

1214

financial emergencies for charter schools and charter technical

1215

career centers.--This section applies to charter schools

1216

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

1217

technical career centers operating pursuant to s. 1002.34.

1218

     (1) FINANCIAL WEAKNESS; REQUIREMENTS.--

1219

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

1220

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

1221

one of the following conditions occurs:

1222

     1. An end-of-year financial deficit.

1223

     2. A substantial decline in student enrollment without a

1224

commensurate reduction in expenses.

1225

     3. Insufficient revenues to pay current operating expenses.

1226

     4. Insufficient revenues to pay long-term expenses.

1227

     5. Disproportionate administrative expenses.

1228

     6. Excessive debt.

1229

     7. Excessive expenditures.

1230

     8. Inadequate fund balances or reserves.

1231

     9. Failure to meet financial reporting requirements

1232

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

1233

1002.34(14).

1234

     10. Weak financial controls or other adverse financial

1235

conditions identified through an annual audit conducted pursuant

1236

to s. 218.39.

1237

     11. Negative financial findings cited in reports by the

1238

Auditor General or the Office of Program Policy Analysis and

1239

Government Accountability.

1240

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

1241

working days when one or more of the conditions specified in

1242

paragraph (a) occur.

1243

     (c) The governing board and the sponsor shall develop a

1244

corrective action plan and file the plan with the Commissioner of

1245

Education within 30 working days. If the governing board and the

1246

sponsor are unable to agree on a corrective action plan, the

1247

Commissioner of Education shall determine the components of the

1248

plan. The governing board shall implement the plan.

1249

     (d) The governing board shall include the corrective action

1250

plan and the status of its implementation in the annual progress

1251

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

1252

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

1253

     (e) If the governing board fails to implement the

1254

corrective action plan within 1 year, the State Board of

1255

Education shall prescribe any steps necessary for the charter

1256

school or the charter technical career center to comply with

1257

state requirements.

1258

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

1259

before the State Board of Education and report on the

1260

implementation of the State Board of Education's requirements.

1261

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

1262

ASSETS; REQUIREMENTS.--

1263

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

1264

shall provide for a certified public accountant or auditor to

1265

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

1266

     (b) The charter shall ensure that, if an annual financial

1267

audit of a charter school or charter technical career center

1268

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

1269

occurred or will occur if action is not taken or if a charter

1270

school or charter technical career center has a deficit fund

1271

balance or deficit net assets, the auditor must notify the

1272

governing board of the charter school or charter technical career

1273

center, as appropriate, the sponsor, and the Commissioner of

1274

Education.

1275

     (c)1. When a financial audit conducted by a certified

1276

public accountant in accordance with s. 218.39 reveals that one

1277

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

1278

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

1279

deficit net assets exist, the auditor shall notify and provide

1280

the financial audit to the governing board of the charter school

1281

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

1282

and the Commissioner of Education within 7 working days after the

1283

finding is made.

1284

     2. When the charter school or charter technical career

1285

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

1286

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

1287

center shall file a detailed financial recovery plan as provided

1288

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

1289

notified by the Commissioner of Education that a financial

1290

recovery plan is needed.

1291

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

1292

plan with the Commissioner of Education.

1293

     (e) The governing board shall include the financial

1294

recovery plan and the status of its implementation in the annual

1295

progress report to the sponsor which is required under s.

1296

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

1297

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

1298

report to the State Board of Education each charter school and

1299

charter technical career center that is subject to a financial

1300

recovery plan or a corrective action plan under this section.

1301

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

1302

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

1303

recovery and corrective action plans and establishing the

1304

criteria for defining each of the conditions in subsection (1).

1305

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

1306

shall provide technical assistance to charter schools, charter

1307

technical career centers, governing boards, and sponsors in

1308

developing financial recovery and corrective action plans.

1309

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

1310

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

1311

school or charter technical career center fails to correct the

1312

deficiencies noted in the corrective action plan within 1 year or

1313

exhibits one or more financial emergency conditions as provided

1314

in s. 218.503 for 2 consecutive years. This subsection is not

1315

intended to affect a sponsor's authority to terminate or not

1316

renew a charter pursuant to s. 1002.33(8).

1317

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

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