Florida Senate - 2008 SENATOR AMENDMENT

Bill No. CS/HB 7045

207736

CHAMBER ACTION

Senate

Floor: 1a/RE/2R

4/30/2008 10:07 PM

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House



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Senator Gaetz moved the following amendment to amendment

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(510960):

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     Senate Amendment (with title amendment)

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     Between line(s) 5 and 6,

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insert:

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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), paragraph (a) of subsection (10), and subsections

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

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

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

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are added to that section, to read:

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     1002.33  Charter schools.--

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     (5)  SPONSOR; DUTIES.--

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     (b)  Sponsor duties.--

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

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school in its progress toward the goals established in the

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charter.

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     b.  The sponsor shall monitor the revenues and expenditures

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

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1002.345.

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

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

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if the applicant indicates approval is necessary for it to raise

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working funds.

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

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school unless mutually agreed to by both the sponsor and the

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charter school.

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     e.  The sponsor shall ensure that the charter is innovative

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and consistent with the state education goals established by s.

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1000.03(5).

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     f.  The sponsor shall ensure that the charter school

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

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charter school falls short of performance measures included in

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the approved charter, the sponsor shall report such shortcomings

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to the Department of Education.

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

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state law for personal injury, property damage, or death

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

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or governing body of the charter school.

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

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state law for any employment actions taken by an officer,

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

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

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not constitute the basis for a private cause of action.

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     j.  The sponsor shall not impose additional reporting

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requirements on a charter school without providing reasonable and

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specific justification in writing to the charter school.

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     2.  Immunity for the sponsor of a charter school under

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subparagraph 1. applies only with respect to acts or omissions

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

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section.

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     3.  Nothing contained in this paragraph shall be considered

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a waiver of sovereign immunity by a district school board.

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

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school districts in its designated service area to develop

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charter schools that offer secondary education. These charter

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schools must include an option for students to receive an

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associate degree upon high school graduation. District school

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boards shall cooperate with and assist the community college on

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the charter application. Community college applications for

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charter schools are not subject to the time deadlines outlined in

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

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

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FTE for any students who receive FTE funding through the Florida

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Education Finance Program.

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

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applications are subject to the following requirements:

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

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shall prepare and submit an application on a 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

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

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to long-term financial resources for charter school construction,

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charter schools that are operated by a municipality or other

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

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

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

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

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financial resources for charter school construction, charter

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

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

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

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

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

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the provisions set forth in subsection (8).

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     13.  The facilities to be used and their location.

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     14.  The qualifications to be required of the teachers and

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

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qualified staff to achieve best value.

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     15.  The governance structure of the school, including the

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

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required in paragraph (12)(i).

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     16.  A timetable for implementing the charter which

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addresses the implementation of each element thereof and the date

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

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timetable.

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     17.  In the case of an existing public school being

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converted to charter status, alternative arrangements for current

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students who choose not to attend the charter school and for

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current teachers who choose not to teach in the charter school

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after conversion in accordance with the existing collective

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bargaining agreement or district school board rule in the absence

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of a collective bargaining agreement. However, alternative

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arrangements shall not be required for current teachers who

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

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by the employment policies of the state university which grants

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the charter to the lab school.

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     18. Full disclosure of the identity of all relatives

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employed by the charter school who are related to the charter

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school owner, president, chairperson of the governing board of

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directors, superintendent, governing board member, principal,

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assistant principal, or any other person employed by the charter

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school having equivalent decisionmaking authority. For the

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

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

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

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

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stepfather, stepmother, stepson, stepdaughter, stepbrother,

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stepsister, half brother, or half sister.

492

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

493

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

494

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

495

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

496

determination is not subject to an informal hearing under

497

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

498

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

499

charter school principal, and the department if a charter is

500

immediately terminated. The sponsor shall clearly identify the

501

specific issues that resulted in the immediate termination and

502

provide evidence of prior notification of issues resulting in the

503

immediate termination when appropriate. The school district in

504

which the charter school is located shall assume operation of the

505

school under these circumstances. The charter school's governing

506

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

507

to terminate the charter, appeal the decision pursuant to the

508

procedure established in subsection (6).

509

     (9)  CHARTER SCHOOL REQUIREMENTS.--

510

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

511

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

512

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

513

conducted by a certified public accountant or auditor in

514

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

515

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

516

state of financial emergency exists. When a charter school is

517

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

518

public accountant or auditor, the charter school must file a

519

detailed financial recovery plan with the sponsor within 30 days

520

after receipt of the audit.

521

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

522

comparable to that reported for other public schools, charter

523

schools are to maintain all financial records which constitute

524

their accounting system:

525

     1.  In accordance with the accounts and codes prescribed in

526

the most recent issuance of the publication titled "Financial and

527

Program Cost Accounting and Reporting for Florida Schools"; or

528

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

529

a charter school may elect to follow generally accepted

530

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

531

reformat this information for reporting according to this

532

paragraph.

533

534

Charter schools shall provide annual financial report and program

535

cost report information in the state-required formats for

536

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

537

Charter schools that are operated by a municipality or are a

538

component unit of a parent nonprofit organization may use the

539

accounting system of the municipality or the parent but must

540

reformat this information for reporting according to this

541

paragraph. A charter school shall provide monthly financial

542

statements to the sponsor.

543

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

544

annually adopt and maintain an operating budget.

545

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

546

exercise continuing oversight over charter school operations.

547

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

548

responsible for:

549

     1.  Ensuring that the charter school has retained the

550

services of a certified public accountant or auditor for the

551

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

552

who shall submit the report to the governing body.

553

     2.  Reviewing and approving the audit report, including

554

audit findings and recommendations for the financial recovery

555

plan.

556

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

557

including monitoring a corrective action plan.

558

     b. Monitoring a financial recovery plan in order to ensure

559

compliance.

560

     4.  Participating in governance training approved by the

561

department that must include government in the sunshine,

562

conflicts of interest, ethics, and financial responsibility.

563

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

564

report its progress annually to its sponsor, which shall forward

565

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

566

other annual school accountability reports. The Department of

567

Education shall develop a uniform, online annual accountability

568

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

569

easy to utilize and contain demographic information, student

570

performance data, and financial accountability information. A

571

charter school shall not be required to provide information and

572

data that is duplicative and already in the possession of the

573

department. The Department of Education shall include in its

574

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

575

the deadline established by the department. The report shall

576

include at least the following components:

577

     1.  Student achievement performance data, including the

578

information required for the annual school report and the

579

education accountability system governed by ss. 1008.31 and

580

1008.345. Charter schools are subject to the same accountability

581

requirements as other public schools, including reports of

582

student achievement information that links baseline student data

583

to the school's performance projections identified in the

584

charter. The charter school shall identify reasons for any

585

difference between projected and actual student performance.

586

     2.  Financial status of the charter school which must

587

include revenues and expenditures at a level of detail that

588

allows for analysis of the ability to meet financial obligations

589

and timely repayment of debt.

590

     3.  Documentation of the facilities in current use and any

591

planned facilities for use by the charter school for instruction

592

of students, administrative functions, or investment purposes.

593

     4.  Descriptive information about the charter school's

594

personnel, including salary and benefit levels of charter school

595

employees, the proportion of instructional personnel who hold

596

professional or temporary certificates, and the proportion of

597

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

598

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

599

secured by tax revenues.

600

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

601

least the number of days required by law for other public

602

schools, and may provide instruction for additional days.

603

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

604

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

605

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

606

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

607

concerning each contract component having noted deficiencies. The

608

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

609

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

610

address its deficiencies.

611

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

612

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

613

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

614

sponsor's staff shall require the director and a representative

615

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

616

school improvement plan to raise student achievement and to

617

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

618

school improvement plan that the charter school will implement in

619

the following school year. The sponsor may also consider the

620

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

621

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

622

of Education shall offer technical assistance and training to the

623

charter school and its governing body and establish guidelines

624

for developing, submitting, and approving such plans.

625

     1.  If the charter school fails to improve its student

626

performance from the year immediately prior to the implementation

627

of the school improvement plan, the sponsor shall place the

628

charter school on probation and shall require the charter school

629

governing body to take one of the following corrective actions:

630

     a.  Contract for the educational services of the charter

631

school;

632

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

633

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

634

staff and implement a plan that addresses the causes of

635

inadequate progress; or

636

     c.  Reconstitute the charter school.

637

     2.  A charter school that is placed on probation shall

638

continue the corrective actions required under subparagraph 1.

639

until the charter school improves its student performance from

640

the year prior to the implementation of the school improvement

641

plan.

642

     3.  Notwithstanding any provision of this paragraph, the

643

sponsor may terminate the charter at any time pursuant to the

644

provisions of subsection (8).

645

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

646

body of a graded charter school that has submitted a school

647

improvement plan or has been placed on probation under paragraph

648

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

649

least once a year to present information regarding the corrective

650

strategies that are being implemented by the school pursuant to

651

the school improvement plan. The sponsor shall communicate at the

652

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

653

the school to help the school address its deficiencies.

654

     (10)  ELIGIBLE STUDENTS.--

655

     (a) A charter school shall be open to any student covered

656

in an interdistrict agreement or residing in the school district

657

in which the charter school is located; however, in the case of a

658

charter lab school, the charter lab school shall be open to any

659

student eligible to attend the lab school as provided in s.

660

1002.32 or who resides in the school district in which the

661

charter lab school is located. Any eligible student shall be

662

allowed interdistrict transfer to attend a charter school when

663

based on good cause. Good cause shall include, but not be limited

664

to, geographic proximity to a charter school in a neighboring

665

school district.

666

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

667

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

668

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

669

enrolled in other public schools in the school district. Funding

670

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

671

     (a)  Each charter school shall report its student enrollment

672

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

673

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

674

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

675

enrollment. All charter schools submitting student record

676

information required by the Department of Education shall comply

677

with the Department of Education's guidelines for electronic data

678

formats for such data, and all districts shall accept electronic

679

data that complies with the Department of Education's electronic

680

format.

681

     (b)  The basis for the agreement for funding students

682

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

683

district's operating funds from the Florida Education Finance

684

Program as provided in s. 1011.62 and the General Appropriations

685

Act, including gross state and local funds, discretionary lottery

686

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

687

discretionary millage levy; divided by total funded weighted

688

full-time equivalent students in the school district; multiplied

689

by the weighted full-time equivalent students for the charter

690

school. Charter schools whose students or programs meet the

691

eligibility criteria in law shall be entitled to their

692

proportionate share of categorical program funds included in the

693

total funds available in the Florida Education Finance Program by

694

the Legislature, including transportation. Total funding for each

695

charter school shall be recalculated during the year to reflect

696

the revised calculations under the Florida Education Finance

697

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

698

students reported by the charter school during the full-time

699

equivalent student survey periods designated by the Commissioner

700

of Education. Florida Education Finance Program funds for a

701

charter school must be distributed to the charter school by the

702

district school board within 10 days after receipt from the

703

state.

704

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

705

services to students funded by federal funds, any eligible

706

students enrolled in charter schools in the school district shall

707

be provided federal funds for the same level of service provided

708

students in the schools operated by the district school board.

709

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

710

schools shall receive all federal funding for which the school is

711

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

712

months after the charter school first opens and within 5 months

713

after any subsequent expansion of enrollment.

714

     (d)  District school boards shall make timely and efficient

715

payment and reimbursement to charter schools, including

716

processing paperwork required to access special state and federal

717

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

718

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

719

on the projected full-time equivalent student membership of the

720

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

721

student membership surveys shall be used in adjusting the amount

722

of funds distributed monthly to the charter school for the

723

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

724

later than 10 working days after the district school board

725

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

726

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

727

funding by the district school board, the school district shall

728

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

729

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

730

calculated on a daily basis on the unpaid balance from the

731

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

732

is issued.

733

     (21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--

734

     (a) The Department of Education shall provide information

735

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

736

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

737

schools once they are created. This information shall include a

738

standard application format, charter format, evaluation

739

instrument, and charter renewal format, which shall include the

740

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

741

consulting and negotiating with both school districts, the

742

Florida Schools of Excellence Commission, and charter schools

743

before implementation. The charter and charter renewal These

744

formats shall be used as guidelines by charter school sponsors.

745

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

746

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

747

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

748

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

749

reported to alternative schools that receive a school improvement

750

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

751

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

752

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

753

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

754

statewide assessment test pursuant to s. 1008.22.

755

     2. The charter school shall report the information in

756

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

757

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

758

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

759

the governing board of the charter school. This paragraph does

760

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

761

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

762

Educational Rights and Privacy Act.

763

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

764

Education shall compare the charter school student performance

765

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

766

performance data in traditional public schools in the district in

767

which the charter school is located and other charter schools in

768

the state. For alternative charter schools, the department shall

769

compare the student performance data described in this paragraph

770

with all alternative schools in the state. The comparative data

771

shall be provided by the following grade groupings:

772

     (I) Grades 3 through 5;

773

     (II) Grades 6 through 8; and

774

     (III) Grades 9 through 11.

775

     b. Each charter school shall provide the information in

776

this paragraph on its Internet website and also provide notice to

777

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

778

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

779

Board of Education shall adopt rules to administer the notice

780

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

781

120.54. The website shall include, through links or actual

782

content, other information related to school performance.

783

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

784

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

785

Department of Education shall provide to the State Board of

786

Education, the Commissioner of Education, the Governor, the

787

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

788

Representatives an analysis and comparison of the overall

789

performance of charter school students, to include all students

790

whose scores are counted as part of the statewide assessment

791

program, versus comparable public school students in the district

792

as determined by the statewide assessment program currently

793

administered in the school district, and other assessments

794

administered pursuant to s. 1008.22(3).

795

     (24) RESTRICTION ON EMPLOYMENT OF RELATIVES.--

796

     (a) This subsection applies to charter school personnel in

797

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

798

subsection, the term:

799

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

800

president, chairperson of the governing board of directors,

801

superintendent, governing board member, principal, assistant

802

principal, or any other person employed by the charter school

803

having equivalent decisionmaking authority and in whom is vested

804

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

805

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

806

individuals for appointment, employment, promotion, or

807

advancement in connection with employment in a charter school,

808

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

809

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

810

or advancement of individuals.

811

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

812

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

813

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

814

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

815

stepdaughter, stepbrother, stepsister, half brother, or half

816

sister.

817

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

818

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

819

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

820

school in which the personnel are serving or over which the

821

personnel exercises jurisdiction or control any individual who is

822

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

823

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

824

such appointment, employment, promotion, or advancement has been

825

advocated by charter school personnel who serve in or exercise

826

jurisdiction or control over the charter school and who is a

827

relative of the individual or if such appointment, employment,

828

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

829

a relative of the individual is a member.

830

     (c) The requirements in paragraph (b) may be waived by the

831

Commissioner of Education or his or her designee for good cause.

832

     (d) Mere approval of budgets does not constitute

833

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

834

Charter school personnel in schools operated by a municipality or

835

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

836

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

837

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

838

including a charter school operated by a private entity, is

839

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

840

and 112.3143(3).

841

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

842

operated by a municipality or other public entity is subject to

843

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

844

financial interests.

845

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

846

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

847

1002.335, Florida Statutes, are amended to read:

848

     1002.335  Florida Schools of Excellence Commission.--

849

     (5)  CHARTERING AUTHORITY.--

850

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

851

the commission only if the school district in which the FSE

852

charter school is to be located has not retained exclusive

853

authority to authorize charter schools as provided in paragraph

854

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

855

authority to authorize charter schools as provided in paragraph

856

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

857

concurrent authority to authorize charter schools and FSE charter

858

schools, respectively, to be located within the geographic

859

boundaries of the school district. The district school board

860

shall monitor and oversee all charter schools authorized by the

861

district school board pursuant to s. 1002.33. The commission

862

shall monitor and oversee all FSE charter schools sponsored by

863

the commission pursuant to subsection (4).

864

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

865

ability of a district school board to authorize charter schools

866

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

867

authority to reauthorize and to oversee any charter school that

868

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

869

is converted to an FSE charter school under this section.

870

     (c) For fiscal year 2008-2009 and every 4 fiscal years

871

2007-2008 and for each fiscal year thereafter, a district school

872

board may seek to retain exclusive authority to authorize charter

873

schools within the geographic boundaries of the school district

874

by presenting to the State Board of Education, on or before March

875

1 of the fiscal year prior to that for which the exclusive

876

authority is to apply, a written resolution adopted by the

877

district school board indicating the intent to seek retain

878

exclusive authority to authorize charter schools. A district

879

school board may seek to retain the exclusive authority to

880

authorize charter schools by presenting to the state board the

881

written resolution on or before a date 60 days after

882

establishment of the commission. The written resolution shall be

883

accompanied by a written description addressing the elements

884

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

885

provide a complete copy of the resolution, including the

886

description, to each charter school authorized by the district

887

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

888

the state board.

889

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

890

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

891

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

892

after the state board grants exclusive authority. The notice

893

shall be accompanied by a specific written description of the

894

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

895

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

896

notice of challenge to the district school board that has been

897

granted exclusive authority. The state board shall permit the

898

district school board the opportunity to appear and respond in

899

writing to the challenge. The state board shall make a

900

determination upon the challenge within 60 days after receiving

901

the notice of challenge.

902

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

903

school board exclusive authority to authorize charter schools

904

within the geographic boundaries of the school district if the

905

state board determines, after adequate notice, in a public

906

hearing, and after receiving input from any charter school

907

authorized by the district school board, that the district school

908

board has provided fair and equitable treatment to its charter

909

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

910

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

911

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

912

include consideration of the following:

913

     1.  Compliance with the provisions of s. 1002.33.

914

     2.  Compliance with full and accurate accounting practices

915

and charges for central administrative overhead costs.

916

     3.  Compliance with requirements allowing a charter school,

917

at its discretion, to purchase certain services or a combination

918

of services at actual cost to the district.

919

     4.  The absence of a district school board moratorium

920

regarding charter schools or the absence of any districtwide

921

charter school enrollment limits.

922

     5.  Compliance with valid orders of the state board.

923

     6.  The provision of assistance to charter schools to meet

924

their facilities needs by including those needs in local bond

925

issues or otherwise providing available land and facilities that

926

are comparable to those provided to other public school students

927

in the same grade levels within the school district.

928

     7.  The distribution to charter schools authorized by the

929

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

930

grants received by the district school board, except for any

931

grant received for a particular purpose which, by its express

932

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

933

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

934

school that did not receive a proportionate share of such grant

935

proceeds.

936

     8.  The provision of adequate staff and other resources to

937

serve charter schools authorized by the district school board,

938

which services are provided by the district school board at a

939

cost to the charter schools that does not exceed their actual

940

cost to the district school board.

941

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

942

charter school enrollment limits, except as otherwise provided by

943

law.

944

     10.  The provision of an adequate number of educational

945

choice programs to serve students exercising their rights to

946

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

947

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

948

encourages chartering.

949

     (f) The decision of the State Board of Education to grant

950

or deny exclusive authority to a district school board pursuant

951

to paragraph (e) shall be effective for 4 fiscal years, shall not

952

be subject to the provisions of chapter 120 and shall be a final

953

action subject to judicial review by the district court of

954

appeal.

955

     (g)  For district school boards that have no discernible

956

history of authorizing charter schools, the State Board of

957

Education may not grant exclusive authority unless the district

958

school board demonstrates that no approvable application has come

959

before the district school board.

960

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

961

Education shall continue so long as a district school board

962

continues to comply with this section and has presented a written

963

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

964

     (i)  Notwithstanding any other provision of this section to

965

the contrary, a district school board may permit the

966

establishment of one or more FSE charter schools within the

967

geographic boundaries of the school district by adopting a

968

favorable resolution and submitting the resolution to the State

969

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

970

rescinded by resolution of the district school board.

971

     (7)  COSPONSOR AGREEMENT.--

972

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

973

cosponsor shall enter into an agreement that defines the

974

cosponsor's rights and obligations and includes the following:

975

     1.  An explanation of the personnel, contractual and

976

interagency relationships, and potential revenue sources

977

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

978

     2.  Incorporation of the requirements of equal access for

979

all students, including any plans to provide food service or

980

transportation reasonably necessary to provide access to as many

981

students as possible.

982

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

983

low-performing, gifted, or underserved student populations.

984

     4.  An explanation of the academic and financial goals and

985

expected outcomes for the cosponsor's charter schools and the

986

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

987

referenced in the application.

988

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

989

application.

990

     6.  An explanation of the disposition of facilities and

991

assets upon termination and dissolution of a charter school

992

approved by the cosponsor.

993

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

994

before the commission and provide a report as to the information

995

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

996

of its charter schools.

997

     b. A provision requiring the cosponsor to perform the

998

duties provided for in s. 1002.345.

999

     c. A provision requiring the governing board to perform the

1000

duties provided for in s. 1002.345, including monitoring the

1001

corrective action plan.

1002

     8.  A provision requiring that the cosponsor report the

1003

student enrollment in each of its sponsored charter schools to

1004

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

1005

located.

1006

     9.  A provision requiring that the cosponsor work with the

1007

commission to provide the necessary reports to the State Board of

1008

Education.

1009

     10.  Any other reasonable terms deemed appropriate by the

1010

commission given the unique characteristics of the cosponsor.

1011

     (11)  APPLICATION OF CHARTER SCHOOL STATUTE.--

1012

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

1013

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

1014

the cosponsors and charter schools approved pursuant to this

1015

section.

1016

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

1017

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

1018

shall maintain information systems, including, but not limited

1019

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

1020

information and data necessary for parents to make informed

1021

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

1022

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

1023

parents with information on its accountability standards, links

1024

to schools of excellence throughout the state, and public

1025

education programs available in the state.

1026

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

1027

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

1028

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

1029

to read:

1030

     1002.34  Charter technical career centers.--

1031

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

1032

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

1033

submitted by a sponsor or another organization that is

1034

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

1035

appropriate. However, an independent school is not eligible for

1036

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

1037

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

1038

district school board and community college board of trustees in

1039

whose geographic region the facility is located. If a charter

1040

technical career center is established by the conversion to

1041

charter status of a public technical center formerly governed by

1042

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

1043

precedence in any question of governance. The governance of the

1044

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

1045

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

1046

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

1047

conversion charter technical career center is not affected by a

1048

change in the governance of public technical centers or of

1049

programs within other centers that are or have been governed by

1050

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

1051

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

1052

school board and transferred to a community college prior to the

1053

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

1054

applicant who wishes to establish a center must submit to the

1055

district school board or community college board of trustees, or

1056

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

1057

developed by the Department of Education which that includes:

1058

     (a)  The name of the proposed center.

1059

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

1060

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

1061

the qualifications for and method of their appointment or

1062

election.

1063

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

1064

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

1065

assessing the extent to which the outcomes are met.

1066

     (d)  The admissions policy and criteria for evaluating the

1067

admission of students.

1068

     (e)  A description of the staff responsibilities and the

1069

proposed qualifications of the teaching staff.

1070

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

1071

ensure significant involvement of representatives of business and

1072

industry in the operation of the center.

1073

     (g)  A method for determining whether a student has

1074

satisfied the requirements for graduation specified in s. 1003.43

1075

and for completion of a postsecondary certificate or degree.

1076

     (h)  A method for granting secondary and postsecondary

1077

diplomas, certificates, and degrees.

1078

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

1079

in which the center will be located.

1080

     (j)  A method of resolving conflicts between the governing

1081

body of the center and the sponsor and between consortium

1082

members, if applicable.

1083

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

1084

and rule.

1085

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

1086

training provided by the Department of Education.

1087

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

1088

technical career center who are related to the center owner,

1089

president, chairperson of the governing board of directors,

1090

superintendent, governing board member, principal, assistant

1091

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

1092

equivalent decisionmaking authority. As used in this paragraph,

1093

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

1094

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

1095

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

1096

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

1097

stepdaughter, stepbrother, stepsister, half brother, or half

1098

sister.

1099

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

1100

board or community college board of trustees.

1101

1102

Students at a center must meet the same testing and academic

1103

performance standards as those established by law and rule for

1104

students at public schools and public technical centers. The

1105

students must also meet any additional assessment indicators that

1106

are included within the charter approved by the district school

1107

board or community college board of trustees.

1108

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

1109

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

1110

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

1111

the application using an evaluation instrument developed by the

1112

Department of Education and make a final decision on whether to

1113

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

1114

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

1115

certain actions or maintaining certain conditions. Such actions

1116

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

1117

district school board or community college board of trustees is

1118

not required to issue a charter to any person.

1119

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

1120

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

1121

sponsor a center in the county in which the board has

1122

jurisdiction.

1123

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

1124

for training and technical assistance to applicants in developing

1125

business plans and estimating costs and income. This assistance

1126

shall address estimating startup costs, projecting enrollment,

1127

and identifying the types and amounts of state and federal

1128

financial assistance the center will be eligible to receive. The

1129

training shall include instruction in accurate financial planning

1130

and good business practices.

1131

     2. An applicant must participate in the training provided

1132

by the Department of Education prior to filing an application.

1133

The Department of Education may provide technical assistance to

1134

an applicant upon written request.

1135

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

1136

progress toward charter goals and shall monitor the center's

1137

revenues and expenditures. The sponsor shall perform the duties

1138

provided for in s. 1002.345.

1139

     (10)  EXEMPTION FROM STATUTES.--

1140

     (c)  A center must comply with the antidiscrimination

1141

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

1142

relating to the employment of relatives.

1143

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

1144

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

1145

school, including budgeting, curriculum, and operating

1146

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

1147

directors is responsible for performing the duties provided for

1148

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

1149

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

1150

1002.33(25).

1151

     Section 9.  Section 1002.345, Florida Statutes, is created

1152

to read:

1153

     1002.345 Determination of financial weaknesses and

1154

financial emergencies for charter schools and charter technical

1155

career centers.--This section applies to charter schools

1156

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

1157

technical career centers operating pursuant to s. 1002.34.

1158

     (1) FINANCIAL WEAKNESS; REQUIREMENTS.--

1159

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

1160

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

1161

one of the following conditions occurs:

1162

     1. An end-of-year financial deficit.

1163

     2. A substantial decline in student enrollment without a

1164

commensurate reduction in expenses.

1165

     3. Insufficient revenues to pay current operating expenses.

1166

     4. Insufficient revenues to pay long-term expenses.

1167

     5. Disproportionate administrative expenses.

1168

     6. Excessive debt.

1169

     7. Excessive expenditures.

1170

     8. Inadequate fund balances or reserves.

1171

     9. Failure to meet financial reporting requirements

1172

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

1173

1002.34(14).

1174

     10. Weak financial controls or other adverse financial

1175

conditions identified through an annual audit conducted pursuant

1176

to s. 218.39.

1177

     11. Negative financial findings cited in reports by the

1178

Auditor General or the Office of Program Policy Analysis and

1179

Government Accountability.

1180

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

1181

working days when one or more of the conditions specified in

1182

paragraph (a) occur.

1183

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

1184

corrective action plan and file the plan with the Commissioner of

1185

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

1186

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

1187

Commissioner of Education shall determine the components of the

1188

plan. The governing board shall implement the plan.

1189

     (d) The governing board shall include the corrective action

1190

plan and the status of its implementation in the annual progress

1191

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

1192

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

1193

     (e) If the governing board fails to implement the

1194

corrective action plan within 1 year, the State Board of

1195

Education shall prescribe any steps necessary for the charter

1196

school or the charter technical career center to comply with

1197

state requirements.

1198

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

1199

before the State Board of Education and report on the

1200

implementation of the State Board of Education's requirements.

1201

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

1202

ASSETS; REQUIREMENTS.--

1203

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

1204

shall provide for a certified public accountant or auditor to

1205

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

1206

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

1207

audit of a charter school or charter technical career center

1208

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

1209

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

1210

school or charter technical career center has a deficit fund

1211

balance or deficit net assets, the auditor must notify the

1212

governing board of the charter school or charter technical career

1213

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

1214

Education.

1215

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

1216

public accountant in accordance with s. 218.39 reveals that one

1217

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

1218

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

1219

deficit net assets exist, the auditor shall notify and provide

1220

the financial audit to the governing board of the charter school

1221

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

1222

and the Commissioner of Education within 7 working days after the

1223

finding is made.

1224

     2. When the charter school or charter technical career

1225

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

1226

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

1227

center shall file a detailed financial recovery plan as provided

1228

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

1229

notified by the Commissioner of Education that a financial

1230

recovery plan is needed.

1231

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

1232

plan with the Commissioner of Education.

1233

     (e) The governing board shall include the financial

1234

recovery plan and the status of its implementation in the annual

1235

progress report to the sponsor which is required under s.

1236

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

1237

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

1238

report to the State Board of Education each charter school and

1239

charter technical career center that is subject to a financial

1240

recovery plan or a corrective action plan under this section.

1241

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

1242

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

1243

recovery and corrective action plans and establishing the

1244

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

1245

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

1246

shall provide technical assistance to charter schools, charter

1247

technical career centers, governing boards, and sponsors in

1248

developing financial recovery and corrective action plans.

1249

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

1250

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

1251

school or charter technical career center fails to correct the

1252

deficiencies noted in the corrective action plan within 1 year or

1253

exhibits one or more financial emergency conditions as provided

1254

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

1255

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

1256

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

1257

1258

================ T I T L E  A M E N D M E N T ================

1259

And the title is amended as follows:

1260

     On line(s) 1305, after the first semicolon,

1261

insert:

1262

1263

amending ss. 11.45, 218.50, and 218.501, F.S., relating to

1264

audit reports by the Auditor General; conforming

1265

provisions related to changes in the entities subject to a

1266

state of financial emergency; amending ss. 218.503 and

1267

218.504, F.S.; providing that charter technical career

1268

centers are subject to certain requirements in the event

1269

of a financial emergency; requiring that the sponsor be

1270

notified of certain conditions; providing for the

1271

development of a financial recovery plan, which may be

1272

approved by the Commissioner of Education; amending s.

1273

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

1274

sponsors and governing boards when charter schools and

1275

charter technical career centers experience a financial

1276

weakness or a financial emergency; specifying forms to be

1277

used by charter school applicants and sponsors; requiring

1278

applicant training and documentation; deleting the

1279

auditing requirements and financial emergency provisions

1280

for charter schools; requiring charters schools to

1281

disclose the identity of relatives of charter school

1282

personnel; providing that the immediate termination of a

1283

charter is exempt from requirements for an informal

1284

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

1285

provisions relating to eligible students; providing

1286

requirements for the distribution of funds for charter

1287

schools; providing for the disclosure of the performance

1288

of charter schools that are not given a school grade or

1289

school improvement rating; revising the requirements for

1290

providing information to the public on how to form and

1291

operate a charter school; providing reporting

1292

requirements; providing restrictions for the employment of

1293

relatives by charter school personnel; providing for a

1294

waiver by the Commissioner of Education; providing that

1295

members of a charter school governing board are subject to

1296

certain standards of conduct specified in ss. 112.313 and

1297

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

1298

the requirement for district school boards to annually

1299

seek continued exclusivity from the State Board of

1300

Education; specifying additional components of cosponsor

1301

agreements; amending s. 1002.34, F.S.; providing

1302

additional duties for charter technical career centers,

1303

applicants, sponsors, and governing boards; requiring the

1304

Department of Education to offer or arrange training and

1305

assistance to applicants for a charter technical career

1306

center; requiring that an applicant participate in the

1307

training; creating s. 1002.345, F.S.; establishing

1308

criteria and requirements for charter schools and charter

1309

technical career centers that have financial weaknesses or

1310

are in a state of financial emergency; establishing

1311

requirements for charter schools, charter technical career

1312

centers, governing bodies, and sponsors; requiring

1313

financial audits of charter schools and charter technical

1314

career centers; providing for corrective action and

1315

financial recovery plans; providing for duties of

1316

auditors, the Commissioner of Education, and the

1317

Department of Education; requiring the State Board of

1318

Education to adopt rules; providing grounds for

1319

termination or nonrenewal of a charter;

4/29/2008  2:58:00 PM     4-08965A-08

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