HB 1005

1	A bill to be entitled
2	An act relating to charter schools; amending ss. 11.45,
3	218.50, and 218.501, F.S., relating to audit reports by
4	the Auditor General; conforming provisions related to
5	changes in the entities subject to a state of financial
6	emergency; amending ss. 218.503 and 218.504, F.S.;
7	providing that charter technical career centers are
8	subject to certain requirements in the event of a
9	financial emergency; requiring that the sponsor be
10	notified of certain conditions; providing for the
11	development of a financial recovery plan, which may be
12	approved by the Commissioner of Education; amending s.
13	1002.33, F.S.; providing for duties of charter school
14	sponsors and governing boards when charter schools and
15	charter technical career centers experience a financial
16	weakness or a financial emergency; specifying forms to be
17	used by charter school applicants and sponsors; requiring
18	applicant training and documentation; deleting the
19	auditing requirements and financial emergency provisions
20	for charter schools; requiring charters schools to
21	disclose the identity of relatives of charter school
22	personnel; providing that the immediate termination of a
23	charter is exempt from requirements for an informal
24	hearing or for a hearing under ch. 120, F.S.; providing
25	for a limitation on funding; providing for the disclosure
26	of the performance of charter schools that are not given a
27	school grade or school improvement rating; revising the
28	requirements for providing information to the public on
29	how to form and operate a charter school; providing
30	reporting requirements; providing restrictions for the
31	employment of relatives by charter school personnel;
32	providing that members of a charter school governing board
33	are subject to certain standards of conduct specified in
34	ss. 112.313 and 112.3143, F.S.; amending s. 1002.335,
35	F.S.; eliminating the requirement for district school
36	boards to annually seek continued exclusivity from the
37	State Board of Education; providing for challenges to the
38	exclusivity of district school boards; providing a
39	presumption for district school boards that are granted
40	exclusivity; providing for informal hearings; specifying
41	additional components of cosponsor agreements; amending s.
42	1002.34, F.S.; providing additional duties for charter
43	technical career centers, applicants, sponsors, and
44	governing boards; requiring the Department of Education to
45	offer or arrange training and assistance to applicants for
46	a charter technical career center; requiring that an
47	applicant participate in the training; creating s.
48	1002.345, F.S.; establishing criteria and requirements for
49	charter schools and charter technical career centers that
50	have financial weaknesses or are in a state of financial
51	emergency; establishing requirements for charter schools,
52	charter technical career centers, governing bodies, and
53	sponsors; requiring financial audits of charter schools
54	and charter technical career centers; providing for
55	corrective action and financial recovery plans; providing
56	for duties of auditors, the Commissioner of Education, and
57	the Department of Education; requiring the State Board of
58	Education to adopt rules; providing grounds for
59	termination or nonrenewal of a charter; providing an
60	effective date.
61
62	Be It Enacted by the Legislature of the State of Florida:
63
64	Section 1.  Paragraph (e) of subsection (7) and subsection
65	(8) of section 11.45, Florida Statutes, are amended to read:
66	11.45  Definitions; duties; authorities; reports; rules.--
67	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
68	(e)  The Auditor General shall notify the Governor or the
69	Commissioner of Education, as appropriate, and the Legislative
70	Auditing Committee of any audit report reviewed by the Auditor
71	General pursuant to paragraph (b) which contains a statement
72	that a local governmental entity, charter school, charter
73	technical career center, or district school board has met one or
74	more of the conditions specified in s. 218.503. If the Auditor
75	General requests a clarification regarding information included
76	in an audit report to determine whether a local governmental
77	entity, charter school, charter technical career center, or
78	district school board has met one or more of the conditions
79	specified in s. 218.503, the requested clarification must be
80	provided within 45 days after the date of the request. If the
81	local governmental entity, charter school, charter technical
82	career center, or district school board does not comply with the
83	Auditor General's request, the Auditor General shall notify the
84	Legislative Auditing Committee. If, after obtaining the
85	requested clarification, the Auditor General determines that the
86	local governmental entity, charter school, charter technical
87	career center, or district school board has met one or more of
88	the conditions specified in s. 218.503, he or she shall notify
89	the Governor or the Commissioner of Education, as appropriate,
90	and the Legislative Auditing Committee.
91	(8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
92	consultation with the Board of Accountancy, shall adopt rules
93	for the form and conduct of all financial audits performed by
94	independent certified public accountants pursuant to ss.
95	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
96	audits of local governmental entities, charter schools, charter
97	school technical career centers, and district school boards must
98	include, but are not limited to, requirements for the reporting
99	of information necessary to carry out the purposes of the Local
100	Governmental Entity, Charter School, Charter Technical Career
101	Center, and District School Board Financial Emergencies Act as
102	stated in s. 218.501.
103	Section 2.  Section 218.50, Florida Statutes, is amended to
104	read:
105	218.50  Short title.--Sections 218.50-218.504 may be cited
106	as the "Local Governmental Entity, Charter School, Charter
107	Technical Career Center, and District School Board Financial
108	Emergencies Act."
109	Section 3.  Section 218.501, Florida Statutes, is amended
110	to read:
111	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
112	(1)  To promote the fiscal responsibility of local
113	governmental entities, charter schools, charter technical career
114	centers, and district school boards.
115	(2)  To assist local governmental entities, charter
116	schools, charter technical career centers, and district school
117	boards in providing essential services without interruption and
118	in meeting their financial obligations.
119	(3)  To assist local governmental entities, charter
120	schools, charter technical career centers, and district school
121	boards through the improvement of local financial management
122	procedures.
123	Section 4.  Subsections (1), (2), and (4) of section
124	218.503, Florida Statutes, are amended to read:
125	218.503  Determination of financial emergency.--
126	(1)  Local governmental entities, charter schools, charter
127	technical career centers, and district school boards shall be
128	subject to review and oversight by the Governor, the charter
129	school sponsor, the charter technical career center sponsor, or
130	the Commissioner of Education, as appropriate, when any one of
131	the following conditions occurs:
132	(a)  Failure within the same fiscal year in which due to
133	pay short-term loans or failure to make bond debt service or
134	other long-term debt payments when due, as a result of a lack of
135	funds.
136	(b)  Failure to pay uncontested claims from creditors
137	within 90 days after the claim is presented, as a result of a
138	lack of funds.
139	(c)  Failure to transfer at the appropriate time, due to
140	lack of funds:
141	1.  Taxes withheld on the income of employees; or
142	2.  Employer and employee contributions for:
143	a.  Federal social security; or
144	b.  Any pension, retirement, or benefit plan of an
145	employee.
146	(d)  Failure for one pay period to pay, due to lack of
147	funds:
148	1.  Wages and salaries owed to employees; or
149	2.  Retirement benefits owed to former employees.
150	(e)  An unreserved or total fund balance or retained
151	earnings deficit, or unrestricted or total net assets deficit,
152	as reported on the balance sheet or statement of net assets on
153	the general purpose or fund financial statements, for which
154	sufficient resources of the local governmental entity, as
155	reported on the balance sheet or statement of net assets on the
156	general purpose or fund financial statements, are not available
157	to cover the deficit. Resources available to cover reported
158	deficits include net assets that are not otherwise restricted by
159	federal, state, or local laws, bond covenants, contractual
160	agreements, or other legal constraints. Fixed or capital assets,
161	the disposal of which would impair the ability of a local
162	governmental entity to carry out its functions, are not
163	considered resources available to cover reported deficits.
164	(2)  A local governmental entity shall notify the Governor
165	and the Legislative Auditing Committee, a charter school shall
166	notify the charter school sponsor and the Legislative Auditing
167	Committee, a charter technical career center shall notify the
168	charter technical career center sponsor and the Legislative
169	Auditing Committee, and a district school board shall notify the
170	Commissioner of Education and the Legislative Auditing
171	Committee, when one or more of the conditions specified in
172	subsection (1) have occurred or will occur if action is not
173	taken to assist the local governmental entity, charter school,
174	charter school technical career center, or district school
175	board. In addition, any state agency must, within 30 days after
176	a determination that one or more of the conditions specified in
177	subsection (1) have occurred or will occur if action is not
178	taken to assist the local governmental entity, charter school,
179	charter school technical career center, or district school
180	board, notify the Governor, charter school sponsor, charter
181	school technical career center sponsor, or the Commissioner of
182	Education, as appropriate, and the Legislative Auditing
183	Committee.
184	(4)(a)  Upon notification that one or more of the
185	conditions in subsection (1) exist, the charter school sponsor
186	or the sponsor's designee and the Commissioner of Education
187	shall contact the charter school governing body to determine
188	what actions have been taken by the charter school governing
189	body to resolve the condition. The Commissioner of Education
190	charter school sponsor has the authority to require and approve
191	a financial recovery plan, to be prepared by the charter school
192	governing body, prescribing actions that will cause the charter
193	school to no longer be subject to this section. The Department
194	of Education shall establish guidelines for developing such
195	plans.
196	(b)  Upon notification that one or more of the conditions
197	in subsection (1) exist, the charter technical career center
198	sponsor or the sponsor's designee and the Commissioner of
199	Education shall contact the charter technical career center
200	governing body to determine what actions have been taken by the
201	charter technical career center governing body to resolve the
202	condition. The Commissioner of Education may require and approve
203	a financial recovery plan, to be prepared by the charter
204	technical career center governing body, prescribing actions that
205	will cause the charter technical career center to no longer be
206	subject to this section.
207	(c)  The Commissioner of Education shall determine if the
208	charter school or charter technical career center needs a
209	financial recovery plan to resolve the condition. If the
210	Commissioner of Education determines that a financial recovery
211	plan is needed, the charter school or charter technical career
212	center is considered to be in a state of financial emergency.
213
214	The Department of Education, with the involvement of sponsors,
215	charter schools, and charter technical career centers, shall
216	establish guidelines for developing such plans.
217	Section 5.  Section 218.504, Florida Statutes, is amended
218	to read:
219	218.504  Cessation of state action.--The Governor or the
220	Commissioner of Education, as appropriate, has the authority to
221	terminate all state actions pursuant to ss. 218.50-218.504.
222	Cessation of state action must not occur until the Governor or
223	the Commissioner of Education, as appropriate, has determined
224	that:
225	(1)  The local governmental entity, charter school, charter
226	technical career center, or district school board:
227	(a)  Has established and is operating an effective
228	financial accounting and reporting system.
229	(b)  Has resolved the conditions outlined in s. 218.503(1).
230	(2)  None of the conditions outlined in s. 218.503(1)
231	exists.
232	Section 6.  Paragraph (b) of subsection (5), paragraphs
233	(a), (b), and (g) of subsection (6), paragraph (a) of subsection
234	(7), paragraph (d) of subsection (8), paragraphs (g) through (q)
235	of subsection (9), and subsections (17), (21), and (23) of
236	section 1002.33, Florida Statutes, are amended, present
237	subsection (24) of that section is redesignated as subsection
238	(26), and a new subsections (24) and (25) are added to that
239	section, to read:
240	1002.33  Charter schools.--
241	(5)  SPONSOR; DUTIES.--
242	(b)  Sponsor duties.--
243	1.a.  The sponsor shall monitor and review the charter
244	school in its progress toward the goals established in the
245	charter.
246	b.  The sponsor shall monitor the revenues and expenditures
247	of the charter school and perform the duties provided for in s.
248	1002.345.
249	c.  The sponsor may approve a charter for a charter school
250	before the applicant has secured space, equipment, or personnel,
251	if the applicant indicates approval is necessary for it to raise
252	working funds.
253	d.  The sponsor's policies shall not apply to a charter
254	school unless mutually agreed to by both the sponsor and the
255	charter school.
256	e.  The sponsor shall ensure that the charter is innovative
257	and consistent with the state education goals established by s.
258	1000.03(5).
259	f.  The sponsor shall ensure that the charter school
260	participates in the state's education accountability system. If
261	a charter school falls short of performance measures included in
262	the approved charter, the sponsor shall report such shortcomings
263	to the Department of Education.
264	g.  The sponsor shall not be liable for civil damages under
265	state law for personal injury, property damage, or death
266	resulting from an act or omission of an officer, employee,
267	agent, or governing body of the charter school.
268	h.  The sponsor shall not be liable for civil damages under
269	state law for any employment actions taken by an officer,
270	employee, agent, or governing body of the charter school.
271	i.  The sponsor's duties to monitor the charter school
272	shall not constitute the basis for a private cause of action.
273	j.  The sponsor shall not impose additional reporting
274	requirements on a charter school without providing reasonable
275	and specific justification in writing to the charter school.
276	2.  Immunity for the sponsor of a charter school under
277	subparagraph 1. applies only with respect to acts or omissions
278	not under the sponsor's direct authority as described in this
279	section.
280	3.  Nothing contained in this paragraph shall be considered
281	a waiver of sovereign immunity by a district school board.
282	4.  A community college may work with the school district
283	or school districts in its designated service area to develop
284	charter schools that offer secondary education. These charter
285	schools must include an option for students to receive an
286	associate degree upon high school graduation. District school
287	boards shall cooperate with and assist the community college on
288	the charter application. Community college applications for
289	charter schools are not subject to the time deadlines outlined
290	in subsection (6) and may be approved by the district school
291	board at any time during the year. Community colleges shall not
292	report FTE for any students who receive FTE funding through the
293	Florida Education Finance Program.
294	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
295	applications are subject to the following requirements:
296	(a)  A person or entity wishing to open a charter school
297	shall prepare and submit an application on a model application
298	form prepared by the Department of Education, in conjunction
299	with the Florida Schools of Excellence Commission, which that:
300	1.  Demonstrates how the school will use the guiding
301	principles and meet the statutorily defined purpose of a charter
302	school.
303	2.  Provides a detailed curriculum plan that illustrates
304	how students will be provided services to attain the Sunshine
305	State Standards.
306	3.  Contains goals and objectives for improving student
307	learning and measuring that improvement. These goals and
308	objectives must indicate how much academic improvement students
309	are expected to show each year, how success will be evaluated,
310	and the specific results to be attained through instruction.
311	4.  Describes the reading curriculum and differentiated
312	strategies that will be used for students reading at grade level
313	or higher and a separate curriculum and strategies for students
314	who are reading below grade level. A sponsor shall deny a
315	charter if the school does not propose a reading curriculum that
316	is consistent with effective teaching strategies that are
317	grounded in scientifically based reading research.
318	5.  Contains an annual financial plan for each year
319	requested by the charter for operation of the school for up to 5
320	years. This plan must contain anticipated fund balances based on
321	revenue projections, a spending plan based on projected revenues
322	and expenses, and a description of controls that will safeguard
323	finances and projected enrollment trends.
324	6.  Documents that the applicant has participated in the
325	training required in subparagraph (g)2. A sponsor may require an
326	applicant to provide additional information as an addendum to
327	the charter school application as described in this paragraph.
328	(b)  A sponsor shall receive and review all applications
329	for a charter school using an evaluation instrument developed by
330	the Department of Education. A sponsor may require an applicant
331	to provide additional information as an addendum to this
332	evaluation instrument. Beginning with the 2007-2008 school year,
333	a sponsor shall receive and consider charter school applications
334	received on or before August 1 of each calendar year for charter
335	schools to be opened at the beginning of the school district's
336	next school year, or to be opened at a time agreed to by the
337	applicant and the sponsor. A sponsor may receive applications
338	later than this date if it chooses. A sponsor may not charge an
339	applicant for a charter any fee for the processing or
340	consideration of an application, and a sponsor may not base its
341	consideration or approval of an application upon the promise of
342	future payment of any kind.
343	1.  In order to facilitate an accurate budget projection
344	process, a sponsor shall be held harmless for FTE students who
345	are not included in the FTE projection due to approval of
346	charter school applications after the FTE projection deadline.
347	In a further effort to facilitate an accurate budget projection,
348	within 15 calendar days after receipt of a charter school
349	application, a sponsor shall report to the Department of
350	Education the name of the applicant entity, the proposed charter
351	school location, and its projected FTE.
352	2.  In order to ensure fiscal responsibility, an
353	application for a charter school shall include a full accounting
354	of expected assets, a projection of expected sources and amounts
355	of income, including income derived from projected student
356	enrollments and from community support, and an expense
357	projection that includes full accounting of the costs of
358	operation, including start-up costs.
359	3.  A sponsor shall by a majority vote approve or deny an
360	application no later than 60 calendar days after the application
361	is received, unless the sponsor and the applicant mutually agree
362	in writing to temporarily postpone the vote to a specific date,
363	at which time the sponsor shall by a majority vote approve or
364	deny the application. If the sponsor fails to act on the
365	application, an applicant may appeal to the State Board of
366	Education as provided in paragraph (c). If an application is
367	denied, the sponsor shall, within 10 calendar days, articulate
368	in writing the specific reasons, based upon good cause,
369	supporting its denial of the charter application and shall
370	provide the letter of denial and supporting documentation to the
371	applicant and to the Department of Education supporting those
372	reasons.
373	4.  For budget projection purposes, the sponsor shall
374	report to the Department of Education the approval or denial of
375	a charter application within 10 calendar days after such
376	approval or denial. In the event of approval, the report to the
377	Department of Education shall include the final projected FTE
378	for the approved charter school.
379	5.  Upon approval of a charter application, the initial
380	startup shall commence with the beginning of the public school
381	calendar for the district in which the charter is granted unless
382	the sponsor allows a waiver of this provision for good cause.
383	(g)1.  The Department of Education shall offer or arrange
384	for training and technical assistance to charter school
385	applicants in developing business plans and estimating costs and
386	income. This assistance shall address estimating startup costs,
387	projecting enrollment, and identifying the types and amounts of
388	state and federal financial assistance the charter school will
389	be eligible to receive. The department may provide other
390	technical assistance to an applicant upon written request.
391	2.  A charter school applicant must participate in the
392	training provided by the Department of Education prior to filing
393	an application. However, a sponsor may require the charter
394	school applicant to attend training provided by the sponsor in
395	lieu of the department's training if the sponsor's training
396	standards meet or exceed the standards developed by the
397	Department of Education. The training shall include instruction
398	in accurate financial planning and good business practices. In
399	addition to the applicant, if the applicant is a management
400	company or other nonprofit organization, the charter school
401	principal and the chief financial officer must also participate
402	in the training.
403	(7)  CHARTER.--The major issues involving the operation of
404	a charter school shall be considered in advance and written into
405	the charter. The charter shall be signed by the governing body
406	of the charter school and the sponsor, following a public
407	hearing to ensure community input.
408	(a)  The charter shall address, and criteria for approval
409	of the charter shall be based on:
410	1.  The school's mission, the students to be served, and
411	the ages and grades to be included.
412	2.  The focus of the curriculum, the instructional methods
413	to be used, any distinctive instructional techniques to be
414	employed, and identification and acquisition of appropriate
415	technologies needed to improve educational and administrative
416	performance which include a means for promoting safe, ethical,
417	and appropriate uses of technology which comply with legal and
418	professional standards. The charter shall ensure that reading is
419	a primary focus of the curriculum and that resources are
420	provided to identify and provide specialized instruction for
421	students who are reading below grade level. The curriculum and
422	instructional strategies for reading must be consistent with the
423	Sunshine State Standards and grounded in scientifically based
424	reading research.
425	3.  The current incoming baseline standard of student
426	academic achievement, the outcomes to be achieved, and the
427	method of measurement that will be used. The criteria listed in
428	this subparagraph shall include a detailed description for each
429	of the following:
430	a.  How the baseline student academic achievement levels
431	and prior rates of academic progress will be established.
432	b.  How these baseline rates will be compared to rates of
433	academic progress achieved by these same students while
434	attending the charter school.
435	c.  To the extent possible, how these rates of progress
436	will be evaluated and compared with rates of progress of other
437	closely comparable student populations.
438	The district school board is required to provide academic
439	student performance data to charter schools for each of their
440	students coming from the district school system, as well as
441	rates of academic progress of comparable student populations in
442	the district school system.
443	4.  The methods used to identify the educational strengths
444	and needs of students and how well educational goals and
445	performance standards are met by students attending the charter
446	school. Included in the methods is a means for the charter
447	school to ensure accountability to its constituents by analyzing
448	student performance data and by evaluating the effectiveness and
449	efficiency of its major educational programs. Students in
450	charter schools shall, at a minimum, participate in the
451	statewide assessment program created under s. 1008.22.
452	5.  In secondary charter schools, a method for determining
453	that a student has satisfied the requirements for graduation in
454	s. 1003.43.
455	6.  A method for resolving conflicts between the governing
456	body of the charter school and the sponsor.
457	7.  The admissions procedures and dismissal procedures,
458	including the school's code of student conduct.
459	8.  The ways by which the school will achieve a
460	racial/ethnic balance reflective of the community it serves or
461	within the racial/ethnic range of other public schools in the
462	same school district.
463	9.  The financial and administrative management of the
464	school, including a reasonable demonstration of the professional
465	experience or competence of those individuals or organizations
466	applying to operate the charter school or those hired or
467	retained to perform such professional services and the
468	description of clearly delineated responsibilities and the
469	policies and practices needed to effectively manage the charter
470	school. A description of internal audit procedures and
471	establishment of controls to ensure that financial resources are
472	properly managed must be included. Both public sector and
473	private sector professional experience shall be equally valid in
474	such a consideration.
475	10.  The asset and liability projections required in the
476	application which are incorporated into the charter and which
477	shall be compared with information provided in the annual report
478	of the charter school. The charter shall ensure that, if a
479	charter school internal audit or annual financial audit reveals
480	a state of financial emergency as defined in s. 218.503 or
481	deficit financial position, the auditors are required to notify
482	the charter school governing board, the sponsor, and the
483	Department of Education. The internal auditor shall report such
484	findings in the form of an exit interview to the principal or
485	the principal administrator of the charter school and the chair
486	of the governing board within 7 working days after finding the
487	state of financial emergency or deficit position. A final report
488	shall be provided to the entire governing board, the sponsor,
489	and the Department of Education within 14 working days after the
490	exit interview. When a charter school is in a state of financial
491	emergency, the charter school shall file a detailed financial
492	recovery plan with the sponsor. The department, with the
493	involvement of both sponsors and charter schools, shall
494	establish guidelines for developing such plans.
495	11.  A description of procedures that identify various
496	risks and provide for a comprehensive approach to reduce the
497	impact of losses; plans to ensure the safety and security of
498	students and staff; plans to identify, minimize, and protect
499	others from violent or disruptive student behavior; and the
500	manner in which the school will be insured, including whether or
501	not the school will be required to have liability insurance,
502	and, if so, the terms and conditions thereof and the amounts of
503	coverage.
504	12.  The term of the charter which shall provide for
505	cancellation of the charter if insufficient progress has been
506	made in attaining the student achievement objectives of the
507	charter and if it is not likely that such objectives can be
508	achieved before expiration of the charter. The initial term of a
509	charter shall be for 4 or 5 years. In order to facilitate access
510	to long-term financial resources for charter school
511	construction, charter schools that are operated by a
512	municipality or other public entity as provided by law are
513	eligible for up to a 15-year charter, subject to approval by the
514	district school board. A charter lab school is eligible for a
515	charter for a term of up to 15 years. In addition, to facilitate
516	access to long-term financial resources for charter school
517	construction, charter schools that are operated by a private,
518	not-for-profit, s. 501(c)(3) status corporation are eligible for
519	up to a 15-year charter, subject to approval by the district
520	school board. Such long-term charters remain subject to annual
521	review and may be terminated during the term of the charter, but
522	only according to the provisions set forth in subsection (8).
523	13.  The facilities to be used and their location.
524	14.  The qualifications to be required of the teachers and
525	the potential strategies used to recruit, hire, train, and
526	retain qualified staff to achieve best value.
527	15.  The governance structure of the school, including the
528	status of the charter school as a public or private employer as
529	required in paragraph (12)(i).
530	16.  A timetable for implementing the charter which
531	addresses the implementation of each element thereof and the
532	date by which the charter shall be awarded in order to meet this
533	timetable.
534	17.  In the case of an existing public school being
535	converted to charter status, alternative arrangements for
536	current students who choose not to attend the charter school and
537	for current teachers who choose not to teach in the charter
538	school after conversion in accordance with the existing
539	collective bargaining agreement or district school board rule in
540	the absence of a collective bargaining agreement. However,
541	alternative arrangements shall not be required for current
542	teachers who choose not to teach in a charter lab school, except
543	as authorized by the employment policies of the state university
544	which grants the charter to the lab school.
545	18.  Full disclosure of the identity of all relatives
546	employed by the charter school who are related to the charter
547	school owner, president, chairperson of the governing board of
548	directors, superintendent, governing board member, principal,
549	assistant principal, or any other person employed by the charter
550	school having equivalent decisionmaking authority. For the
551	purpose of this subparagraph, the term "relative" means father,
552	mother, son, daughter, brother, sister, uncle, aunt, first
553	cousin, nephew, niece, husband, wife, father-in-law, mother-in-
554	law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
555	stepfather, stepmother, stepson, stepdaughter, stepbrother,
556	stepsister, half brother, or half sister.
557	(8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
558	(d)  A charter may be terminated immediately if the sponsor
559	determines that good cause has been shown or if the health,
560	safety, or welfare of the students is threatened. The sponsor's
561	determination is not subject to an informal hearing under
562	paragraph (b) or pursuant to chapter 120. The sponsor shall
563	notify in writing the charter school's governing body, the
564	charter school principal, and the department if a charter is
565	immediately terminated. The sponsor shall clearly identify the
566	specific issues that resulted in the immediate termination and
567	provide evidence of prior notification of issues resulting in
568	the immediate termination when appropriate. The school district
569	in which the charter school is located shall assume operation of
570	the school under these circumstances. The charter school's
571	governing board may, within 30 days after receiving the
572	sponsor's decision to terminate the charter, appeal the decision
573	pursuant to the procedure established in subsection (6).
574	(9)  CHARTER SCHOOL REQUIREMENTS.--
575	(g)  A charter school shall provide for an annual financial
576	audit in accordance with s. 218.39. Financial audits that reveal
577	a state of financial emergency as defined in s. 218.503 and are
578	conducted by a certified public accountant or auditor in
579	accordance with s. 218.39 shall be provided to the governing
580	body of the charter school within 7 working days after finding
581	that a state of financial emergency exists. When a charter
582	school is found to be in a state of financial emergency by a
583	certified public accountant or auditor, the charter school must
584	file a detailed financial recovery plan with the sponsor within
585	30 days after receipt of the audit.
586	(g)(h)  In order to provide financial information that is
587	comparable to that reported for other public schools, charter
588	schools are to maintain all financial records which constitute
589	their accounting system:
590	1.  In accordance with the accounts and codes prescribed in
591	the most recent issuance of the publication titled "Financial
592	and Program Cost Accounting and Reporting for Florida Schools";
593	or
594	2.  At the discretion of the charter school governing
595	board, a charter school may elect to follow generally accepted
596	accounting standards for not-for-profit organizations, but must
597	reformat this information for reporting according to this
598	paragraph.
599
600	Charter schools shall provide annual financial report and
601	program cost report information in the state-required formats
602	for inclusion in district reporting in compliance with s.
603	1011.60(1). Charter schools that are operated by a municipality
604	or are a component unit of a parent nonprofit organization may
605	use the accounting system of the municipality or the parent but
606	must reformat this information for reporting according to this
607	paragraph. A charter school shall provide monthly financial
608	statements to the sponsor.
609	(h)(i)  The governing board of the charter school shall
610	annually adopt and maintain an operating budget.
611	(i)(j)  The governing body of the charter school shall
612	exercise continuing oversight over charter school operations.
613	(j)(k)  The governing body of the charter school shall be
614	responsible for:
615	1.  Ensuring that the charter school has retained the
616	services of a certified public accountant or auditor for the
617	annual financial audit, pursuant to s. 1002.345(2) paragraph
618	(g), who shall submit the report to the governing body.
619	2.  Reviewing and approving the audit report, including
620	audit findings and recommendations for the financial recovery
621	plan.
622	3.a.  Performing the duties provided for in s. 1002.345,
623	including monitoring a corrective action plan.
624	b.  Monitoring a financial recovery plan in order to ensure
625	compliance.
626	4.  Participating in governance training approved by the
627	department that must include government in the sunshine,
628	conflicts of interest, ethics, and financial responsibility.
629	(k)(l)  The governing body of the charter school shall
630	report its progress annually to its sponsor, which shall forward
631	the report to the Commissioner of Education at the same time as
632	other annual school accountability reports. The Department of
633	Education shall develop a uniform, online annual accountability
634	report to be completed by charter schools. This report shall be
635	easy to utilize and contain demographic information, student
636	performance data, and financial accountability information. A
637	charter school shall not be required to provide information and
638	data that is duplicative and already in the possession of the
639	department. The Department of Education shall include in its
640	compilation a notation if a school failed to file its report by
641	the deadline established by the department. The report shall
642	include at least the following components:
643	1.  Student achievement performance data, including the
644	information required for the annual school report and the
645	education accountability system governed by ss. 1008.31 and
646	1008.345. Charter schools are subject to the same accountability
647	requirements as other public schools, including reports of
648	student achievement information that links baseline student data
649	to the school's performance projections identified in the
650	charter. The charter school shall identify reasons for any
651	difference between projected and actual student performance.
652	2.  Financial status of the charter school which must
653	include revenues and expenditures at a level of detail that
654	allows for analysis of the ability to meet financial obligations
655	and timely repayment of debt.
656	3.  Documentation of the facilities in current use and any
657	planned facilities for use by the charter school for instruction
658	of students, administrative functions, or investment purposes.
659	4.  Descriptive information about the charter school's
660	personnel, including salary and benefit levels of charter school
661	employees, the proportion of instructional personnel who hold
662	professional or temporary certificates, and the proportion of
663	instructional personnel teaching in-field or out-of-field.
664	(l)(m)  A charter school shall not levy taxes or issue
665	bonds secured by tax revenues.
666	(m)(n)  A charter school shall provide instruction for at
667	least the number of days required by law for other public
668	schools, and may provide instruction for additional days.
669	(n)(o)  The director and a representative of the governing
670	body of a charter school that has received a school grade of "D"
671	under s. 1008.34(2) shall appear before the sponsor or the
672	sponsor's staff at least once a year to present information
673	concerning each contract component having noted deficiencies.
674	The sponsor shall communicate at the meeting, and in writing to
675	the director, the services provided to the school to help the
676	school address its deficiencies.
677	(o)(p)  Upon notification that a charter school receives a
678	school grade of "D" for 2 consecutive years or a school grade of
679	"F" under s. 1008.34(2), the charter school sponsor or the
680	sponsor's staff shall require the director and a representative
681	of the governing body to submit to the sponsor for approval a
682	school improvement plan to raise student achievement and to
683	implement the plan. The sponsor has the authority to approve a
684	school improvement plan that the charter school will implement
685	in the following school year. The sponsor may also consider the
686	State Board of Education's recommended action pursuant to s.
687	1008.33(1) as part of the school improvement plan. The
688	Department of Education shall offer technical assistance and
689	training to the charter school and its governing body and
690	establish guidelines for developing, submitting, and approving
691	such plans.
692	1.  If the charter school fails to improve its student
693	performance from the year immediately prior to the
694	implementation of the school improvement plan, the sponsor shall
695	place the charter school on probation and shall require the
696	charter school governing body to take one of the following
697	corrective actions:
698	a.  Contract for the educational services of the charter
699	school;
700	b.  Reorganize the school at the end of the school year
701	under a new director or principal who is authorized to hire new
702	staff and implement a plan that addresses the causes of
703	inadequate progress; or
704	c.  Reconstitute the charter school.
705	2.  A charter school that is placed on probation shall
706	continue the corrective actions required under subparagraph 1.
707	until the charter school improves its student performance from
708	the year prior to the implementation of the school improvement
709	plan.
710	3.  Notwithstanding any provision of this paragraph, the
711	sponsor may terminate the charter at any time pursuant to the
712	provisions of subsection (8).
713	(p)(q)  The director and a representative of the governing
714	body of a graded charter school that has submitted a school
715	improvement plan or has been placed on probation under paragraph
716	(o) (p) shall appear before the sponsor or the sponsor's staff
717	at least once a year to present information regarding the
718	corrective strategies that are being implemented by the school
719	pursuant to the school improvement plan. The sponsor shall
720	communicate at the meeting, and in writing to the director, the
721	services provided to the school to help the school address its
722	deficiencies.
723	(17)  FUNDING.--Students enrolled in a charter school,
724	regardless of the sponsorship, shall be funded as if they are in
725	a basic program or a special program, the same as students
726	enrolled in other public schools in the school district. Funding
727	for a charter lab school shall be as provided in s. 1002.32. The
728	maximum number of students eligible to be funded in any
729	classroom of any charter school shall be the maximum number
730	prescribed by law.
731	(a)  Each charter school shall report its student
732	enrollment to the sponsor as required in s. 1011.62, and in
733	accordance with the definitions in s. 1011.61. The sponsor shall
734	include each charter school's enrollment in the district's
735	report of student enrollment. All charter schools submitting
736	student record information required by the Department of
737	Education shall comply with the Department of Education's
738	guidelines for electronic data formats for such data, and all
739	districts shall accept electronic data that complies with the
740	Department of Education's electronic format.
741	(b)  The basis for the agreement for funding students
742	enrolled in a charter school shall be the sum of the school
743	district's operating funds from the Florida Education Finance
744	Program as provided in s. 1011.62 and the General Appropriations
745	Act, including gross state and local funds, discretionary
746	lottery funds, and funds from the school district's current
747	operating discretionary millage levy; divided by total funded
748	weighted full-time equivalent students in the school district;
749	multiplied by the weighted full-time equivalent students for the
750	charter school. Charter schools whose students or programs meet
751	the eligibility criteria in law shall be entitled to their
752	proportionate share of categorical program funds included in the
753	total funds available in the Florida Education Finance Program
754	by the Legislature, including transportation. Total funding for
755	each charter school shall be recalculated during the year to
756	reflect the revised calculations under the Florida Education
757	Finance Program by the state and the actual weighted full-time
758	equivalent students reported by the charter school during the
759	full-time equivalent student survey periods designated by the
760	Commissioner of Education.
761	(c)  If the district school board is providing programs or
762	services to students funded by federal funds, any eligible
763	students enrolled in charter schools in the school district
764	shall be provided federal funds for the same level of service
765	provided students in the schools operated by the district school
766	board. Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all
767	charter schools shall receive all federal funding for which the
768	school is otherwise eligible, including Title I funding, not
769	later than 5 months after the charter school first opens and
770	within 5 months after any subsequent expansion of enrollment.
771	(d)  District school boards shall make timely and efficient
772	payment and reimbursement to charter schools, including
773	processing paperwork required to access special state and
774	federal funding for which they may be eligible. The district
775	school board may distribute funds to a charter school for up to
776	3 months based on the projected full-time equivalent student
777	membership of the charter school. Thereafter, the results of
778	full-time equivalent student membership surveys shall be used in
779	adjusting the amount of funds distributed monthly to the charter
780	school for the remainder of the fiscal year. The payment shall
781	be issued no later than 10 working days after the district
782	school board receives a distribution of state or federal funds.
783	If a warrant for payment is not issued within 10 working days
784	after receipt of funding by the district school board, the
785	school district shall pay to the charter school, in addition to
786	the amount of the scheduled disbursement, interest at a rate of
787	1 percent per month calculated on a daily basis on the unpaid
788	balance from the expiration of the 10 working days until such
789	time as the warrant is issued.
790	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--
791	(a)  The Department of Education shall provide information
792	to the public, directly and through sponsors, both on how to
793	form and operate a charter school and on how to enroll in
794	charter schools once they are created. This information shall
795	include a standard application format, charter format,
796	evaluation instrument, and charter renewal format, which shall
797	include the information specified in subsection (7) and shall be
798	developed by consulting and negotiating with both school
799	districts, the Florida Schools of Excellence Commission, and
800	charter schools before implementation. The charter and charter
801	renewal These formats shall be used as guidelines by charter
802	school sponsors.
803	(b)1.  The Department of Education shall report student
804	assessment data pursuant to s. 1008.34(3)(b) which is reported
805	to schools that receive a school grade pursuant to s. 1008.34 or
806	student assessment data pursuant to s. 1008.341(3) which is
807	reported to alternative schools that receive a school
808	improvement rating pursuant to s. 1008.341 to each charter
809	school that:
810	a.  Does not receive a school grade pursuant to s. 1008.34
811	or a school improvement rating pursuant to s. 1008.341; and
812	b.  Serves at least 10 students who are tested on the
813	statewide assessment test pursuant to s. 1008.22.
814	2.  The charter school shall report the information in
815	subparagraph 1. to each parent of a student at the charter
816	school, the parent of a child on a waiting list for the charter
817	school, the district in which the charter school is located, and
818	the governing board of the charter school. This paragraph does
819	not abrogate the provisions of s. 1002.22, relating to student
820	records, and the requirements of 20 U.S.C. s. 1232g, the Family
821	Educational Rights and Privacy Act.
822	3.a.  Pursuant to this paragraph, the Department of
823	Education shall compare the charter school student performance
824	data for each charter school in subparagraph 1. with the student
825	performance data in traditional public schools in the district
826	in which the charter school is located and other charter schools
827	in the state. For alternative charter schools, the department
828	shall compare the student performance data described in this
829	paragraph with all alternative schools in the state. The
830	comparative data shall be provided by the following grade
831	groupings:
832	(I)   Grades 3 through 5;
833	(II)  Grades 6 through 8; and
834	(III) Grades 9 through 11.
835	b.  Each charter school shall provide the information in
836	this paragraph on its Internet website and also provide notice
837	to the public in a manner that notifies the community at large,
838	as provided by rules of the State Board of Education. The State
839	Board of Education shall adopt rules to administer the notice
840	requirements of this subparagraph pursuant to ss. 120.536(1) and
841	120.54. The website shall include, through links or actual
842	content, other information related to school performance.
843	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
844	of the annual report required by paragraph (9)(k) (9)(l), the
845	Department of Education shall provide to the State Board of
846	Education, the Commissioner of Education, the Governor, the
847	President of the Senate, and the Speaker of the House of
848	Representatives an analysis and comparison of the overall
849	performance of charter school students, to include all students
850	whose scores are counted as part of the statewide assessment
851	program, versus comparable public school students in the
852	district as determined by the statewide assessment program
853	currently administered in the school district, and other
854	assessments administered pursuant to s. 1008.22(3).
855	(24)  RESTRICTION ON EMPLOYMENT OF RELATIVES.--
856	(a)  This subsection applies to charter school personnel in
857	a charter school operated by a private entity. As used in this
858	subsection, the term:
859	1.  "Charter school personnel" means a charter school
860	owner, president, chairperson of the governing board of
861	directors, superintendent, governing board member, principal,
862	assistant principal, or any other person employed by the charter
863	school having equivalent decisionmaking authority and in whom is
864	vested the authority, or to whom the authority has been
865	delegated, to appoint, employ, promote, or advance individuals
866	or to recommend individuals for appointment, employment,
867	promotion, or advancement in connection with employment in a
868	charter school, including the authority as a member of a
869	governing body of a charter school to vote on the appointment,
870	employment, promotion, or advancement of individuals.
871	2.  "Relative" means father, mother, son, daughter,
872	brother, sister, uncle, aunt, first cousin, nephew, niece,
873	husband, wife, father-in-law, mother-in-law, son-in-law,
874	daughter-in-law, brother-in-law, sister-in-law, stepfather,
875	stepmother, stepson, stepdaughter, stepbrother, stepsister, half
876	brother, or half sister.
877	(b)  Charter school personnel may not appoint, employ,
878	promote, or advance, or advocate for appointment, employment,
879	promotion, or advancement, in or to a position in the charter
880	school in which the personnel are serving or over which the
881	personnel exercises jurisdiction or control any individual who
882	is a relative. An individual may not be appointed, employed,
883	promoted, or advanced in or to a position in a charter school if
884	such appointment, employment, promotion, or advancement has been
885	advocated by charter school personnel who serve in or exercise
886	jurisdiction or control over the charter school and who is a
887	relative of the individual or if such appointment, employment,
888	promotion, or advancement is made by the governing board of
889	which a relative of the individual is a member.
890	(c)  Mere approval of budgets does not constitute
891	"jurisdiction or control" for the purposes of this subsection.
892	Charter school personnel in schools operated by a municipality
893	or other public entity are subject to the provisions of s.
894	112.3135.
895	(25)  STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--
896	(a)  A member of a governing board of a charter school,
897	including a charter school operated by a private entity, is
898	subject to the provisions of ss. 112.313(2), (3), (7), and (12)
899	and 112.3143(3).
900	(b)  A member of a governing board of a charter school
901	operated by a municipality or other public entity is subject to
902	the provisions of s. 112.3144, relating to the disclosure of
903	financial interests.
904	Section 7.  Subsection (5), paragraph (a) of subsection
905	(7), paragraph (a) of subsection (11), and subsection (12) of
906	section 1002.335, Florida Statutes, are amended to read:
907	1002.335  Florida Schools of Excellence Commission.--
908	(5)  CHARTERING AUTHORITY.--
909	(a)  A charter school applicant may submit an application
910	to the commission only if the school district in which the FSE
911	charter school is to be located has not retained exclusive
912	authority to authorize charter schools as provided in paragraph
913	(e). If a district school board has not retained exclusive
914	authority to authorize charter schools as provided in paragraph
915	(e), the district school board and the commission shall have
916	concurrent authority to authorize charter schools and FSE
917	charter schools, respectively, to be located within the
918	geographic boundaries of the school district. The district
919	school board shall monitor and oversee all charter schools
920	authorized by the district school board pursuant to s. 1002.33.
921	The commission shall monitor and oversee all FSE charter schools
922	sponsored by the commission pursuant to subsection (4).
923	(b)  Paragraph (e) may not be construed to eliminate the
924	ability of a district school board to authorize charter schools
925	pursuant to s. 1002.33. A district school board shall retain the
926	authority to reauthorize and to oversee any charter school that
927	it has authorized, except with respect to any charter school
928	that is converted to an FSE charter school under this section.
929	(c)  For fiscal year 2007-2008 and for each fiscal year
930	thereafter, a district school board may seek to retain exclusive
931	authority to authorize charter schools within the geographic
932	boundaries of the school district by presenting to the State
933	Board of Education, on or before March 1 of the fiscal year
934	prior to that for which the exclusive authority is to apply, a
935	written resolution adopted by the district school board
936	indicating the intent to seek retain exclusive authority to
937	authorize charter schools. A district school board may seek to
938	retain the exclusive authority to authorize charter schools by
939	presenting to the state board the written resolution on or
940	before a date 60 days after establishment of the commission. The
941	written resolution shall be accompanied by a written description
942	addressing the elements described in paragraph (e). The district
943	school board shall provide a complete copy of the resolution,
944	including the description, to each charter school authorized by
945	the district school board on or before the date it submits the
946	resolution to the state board.
947	(d)  A party may challenge the grant of exclusive authority
948	made by the State Board of Education pursuant to paragraph (e)
949	by filing with the state board a notice of challenge within 30
950	days after the state board grants initial exclusive authority.
951	The notice shall be accompanied by a specific written
952	description of the basis for the challenge. The challenging
953	party, at the time of filing notice with the state board, shall
954	provide a copy of the notice of challenge to the district school
955	board that has been granted exclusive authority. The state board
956	shall permit the district school board the opportunity to appear
957	and respond in writing to the challenge. The state board shall
958	make a determination upon the challenge within 60 days after
959	receiving the notice of challenge.
960	(e)  The State Board of Education shall grant to a district
961	school board exclusive authority to authorize charter schools
962	within the geographic boundaries of the school district if the
963	state board determines, after adequate notice, in a public
964	hearing, and after receiving input from any charter school
965	authorized by the district school board, that the district
966	school board has provided fair and equitable treatment to its
967	charter schools during the 4 years prior to the district school
968	board's submission of the resolution described in paragraph (c).
969	The state board's review of the resolution shall, at a minimum,
970	include consideration of the following:
971	1.  Compliance with the provisions of s. 1002.33.
972	2.  Compliance with full and accurate accounting practices
973	and charges for central administrative overhead costs.
974	3.  Compliance with requirements allowing a charter school,
975	at its discretion, to purchase certain services or a combination
976	of services at actual cost to the district.
977	4.  The absence of a district school board moratorium
978	regarding charter schools or the absence of any districtwide
979	charter school enrollment limits.
980	5.  Compliance with valid orders of the state board.
981	6.  The provision of assistance to charter schools to meet
982	their facilities needs by including those needs in local bond
983	issues or otherwise providing available land and facilities that
984	are comparable to those provided to other public school students
985	in the same grade levels within the school district.
986	7.  The distribution to charter schools authorized by the
987	district school board of a pro rata share of federal and state
988	grants received by the district school board, except for any
989	grant received for a particular purpose which, by its express
990	terms, is intended to benefit a student population not able to
991	be served by, or a program not able to be offered at, a charter
992	school that did not receive a proportionate share of such grant
993	proceeds.
994	8.  The provision of adequate staff and other resources to
995	serve charter schools authorized by the district school board,
996	which services are provided by the district school board at a
997	cost to the charter schools that does not exceed their actual
998	cost to the district school board.
999	9.  The lack of a policy or practice of imposing individual
1000	charter school enrollment limits, except as otherwise provided
1001	by law.
1002	10.  The provision of an adequate number of educational
1003	choice programs to serve students exercising their rights to
1004	transfer pursuant to the "No Child Left Behind Act of 2001,"
1005	Pub. L. No. 107-110, and a history of charter school approval
1006	that encourages chartering.
1007	(f)  The decision of the State Board of Education pursuant
1008	to paragraph (e) shall not be subject to the provisions of
1009	chapter 120 and shall be a final action subject to judicial
1010	review by the district court of appeal.
1011	(g)  For district school boards that have no discernible
1012	history of authorizing charter schools, the State Board of
1013	Education may not grant exclusive authority unless the district
1014	school board demonstrates that no approvable application has
1015	come before the district school board.
1016	(h)1.  A grant of exclusive authority by the State Board of
1017	Education shall continue so long as a district school board
1018	continues to comply with this section and has presented a
1019	written resolution to the state board as set forth in paragraph
1020	(c). A presumption exists that a district school board that has
1021	been granted exclusive authority has continued to provide fair
1022	and equitable treatment of the charter schools in its district.
1023	2.  A charter school authorized by a district school board
1024	within the previous 4 years may challenge the presumption that
1025	the district school board continues to provide fair and
1026	equitable treatment of the charter schools in its district by
1027	filing a request for a hearing between January 1 and January 31
1028	of any year. The request for a hearing shall state with
1029	specificity the basis for the challenge and must include a
1030	statement certifying that a copy of the request was provided to
1031	the district school board. If a legally sufficient challenge is
1032	filed, the Commissioner of Education shall designate a hearing
1033	officer and refer the matter to the hearing officer for the
1034	conduct of an informal proceeding. The hearing officer shall
1035	provide findings of fact and conclusions of law to the
1036	Commissioner of Education in the form of a recommended order to
1037	the State Board of Education. The State Board of Education shall
1038	enter a final order prior to June 30 determining whether the
1039	district school board continues to provide fair and equitable
1040	treatment to the charter schools in its district.
1041	(i)  Notwithstanding any other provision of this section to
1042	the contrary, a district school board may permit the
1043	establishment of one or more FSE charter schools within the
1044	geographic boundaries of the school district by adopting a
1045	favorable resolution and submitting the resolution to the State
1046	Board of Education. The resolution shall be effective until it
1047	is rescinded by resolution of the district school board.
1048	(7)  COSPONSOR AGREEMENT.--
1049	(a)  Upon approval of a cosponsor, the commission and the
1050	cosponsor shall enter into an agreement that defines the
1051	cosponsor's rights and obligations and includes the following:
1052	1.  An explanation of the personnel, contractual and
1053	interagency relationships, and potential revenue sources
1054	referenced in the application as required in paragraph (6)(c).
1055	2.  Incorporation of the requirements of equal access for
1056	all students, including any plans to provide food service or
1057	transportation reasonably necessary to provide access to as many
1058	students as possible.
1059	3.  Incorporation of the requirement to serve low-income,
1060	low-performing, gifted, or underserved student populations.
1061	4.  An explanation of the academic and financial goals and
1062	expected outcomes for the cosponsor's charter schools and the
1063	method and plans by which they will be measured and achieved as
1064	referenced in the application.
1065	5.  The conflict-of-interest policies referenced in the
1066	application.
1067	6.  An explanation of the disposition of facilities and
1068	assets upon termination and dissolution of a charter school
1069	approved by the cosponsor.
1070	7.a.  A provision requiring the cosponsor to annually
1071	appear before the commission and provide a report as to the
1072	information provided pursuant to s. 1002.33(9)(k) s.
1073	1002.33(9)(l) for each of its charter schools.
1074	b.  A provision requiring the cosponsor to perform the
1075	duties provided for in s. 1002.345.
1076	c.  A provision requiring the governing board to perform
1077	the duties provided for in s. 1002.345, including monitoring the
1078	corrective action plan.
1079	8.  A provision requiring that the cosponsor report the
1080	student enrollment in each of its sponsored charter schools to
1081	the district school board of the county in which the school is
1082	located.
1083	9.  A provision requiring that the cosponsor work with the
1084	commission to provide the necessary reports to the State Board
1085	of Education.
1086	10.  Any other reasonable terms deemed appropriate by the
1087	commission given the unique characteristics of the cosponsor.
1088	(11)  APPLICATION OF CHARTER SCHOOL STATUTE.--
1089	(a)  The provisions of s. 1002.33(7)-(12), (14), and (16)-
1090	(19), (21)(b), (24), and (25) shall apply to the commission and
1091	the cosponsors and charter schools approved pursuant to this
1092	section.
1093	(12)  ACCESS TO INFORMATION.--The commission shall provide
1094	maximum access to information to all parents in the state. It
1095	shall maintain information systems, including, but not limited
1096	to, a user-friendly Internet website, that will provide
1097	information and data necessary for parents to make informed
1098	decisions, including a link to the information provided in s.
1099	1002.33(21)(b)3.b. At a minimum, the commission must provide
1100	parents with information on its accountability standards, links
1101	to schools of excellence throughout the state, and public
1102	education programs available in the state.
1103	Section 8.  Subsections (4) and (5), paragraphs (d) and (f)
1104	of subsection (6), paragraph (c) of subsection (10), and
1105	subsection (13) of section 1002.34, Florida Statutes, are
1106	amended to read:
1107	1002.34  Charter technical career centers.--
1108	(4)  CHARTER.--A sponsor may designate centers as provided
1109	in this section. An application to establish a center may be
1110	submitted by a sponsor or another organization that is
1111	determined, by rule of the State Board of Education, to be
1112	appropriate. However, an independent school is not eligible for
1113	status as a center. The charter must be signed by the governing
1114	body of the center and the sponsor, and must be approved by the
1115	district school board and community college board of trustees in
1116	whose geographic region the facility is located. If a charter
1117	technical career center is established by the conversion to
1118	charter status of a public technical center formerly governed by
1119	a district school board, the charter status of that center takes
1120	precedence in any question of governance. The governance of the
1121	center or of any program within the center remains with its
1122	board of directors unless the board agrees to a change in
1123	governance or its charter is revoked as provided in subsection
1124	(15). Such a conversion charter technical career center is not
1125	affected by a change in the governance of public technical
1126	centers or of programs within other centers that are or have
1127	been governed by district school boards. A charter technical
1128	career center, or any program within such a center, that was
1129	governed by a district school board and transferred to a
1130	community college prior to the effective date of this act is not
1131	affected by this provision. An applicant who wishes to establish
1132	a center must submit to the district school board or community
1133	college board of trustees, or a consortium of one or more of
1134	each, an application on a form developed by the Department of
1135	Education which that includes:
1136	(a)  The name of the proposed center.
1137	(b)  The proposed structure of the center, including a list
1138	of proposed members of the board of directors or a description
1139	of the qualifications for and method of their appointment or
1140	election.
1141	(c)  The workforce development goals of the center, the
1142	curriculum to be offered, and the outcomes and the methods of
1143	assessing the extent to which the outcomes are met.
1144	(d)  The admissions policy and criteria for evaluating the
1145	admission of students.
1146	(e)  A description of the staff responsibilities and the
1147	proposed qualifications of the teaching staff.
1148	(f)  A description of the procedures to be implemented to
1149	ensure significant involvement of representatives of business
1150	and industry in the operation of the center.
1151	(g)  A method for determining whether a student has
1152	satisfied the requirements for graduation specified in s.
1153	1003.43 and for completion of a postsecondary certificate or
1154	degree.
1155	(h)  A method for granting secondary and postsecondary
1156	diplomas, certificates, and degrees.
1157	(i)  A description of and address for the physical facility
1158	in which the center will be located.
1159	(j)  A method of resolving conflicts between the governing
1160	body of the center and the sponsor and between consortium
1161	members, if applicable.
1162	(k)  A method for reporting student data as required by law
1163	and rule.
1164	(l)  A statement that the applicant has participated in the
1165	training provided by the Department of Education.
1166	(m)  The identity of all relatives employed by the charter
1167	technical career center who are related to the center owner,
1168	president, chairperson of the governing board of directors,
1169	superintendent, governing board member, principal, assistant
1170	principal, or any other person employed by the center who has
1171	equivalent decisionmaking authority. As used in this paragraph,
1172	the term "relative" means father, mother, son, daughter,
1173	brother, sister, uncle, aunt, first cousin, nephew, niece,
1174	husband, wife, father-in-law, mother-in-law, son-in-law,
1175	daughter-in-law, brother-in-law, sister-in-law, stepfather,
1176	stepmother, stepson, stepdaughter, stepbrother, stepsister, half
1177	brother, or half sister.
1178	(n)(l)  Other information required by the district school
1179	board or community college board of trustees.
1180
1181	Students at a center must meet the same testing and academic
1182	performance standards as those established by law and rule for
1183	students at public schools and public technical centers. The
1184	students must also meet any additional assessment indicators
1185	that are included within the charter approved by the district
1186	school board or community college board of trustees.
1187	(5)  APPLICATION.--An application to establish a center
1188	must be submitted by February 1 of the year preceding the school
1189	year in which the center will begin operation. The sponsor must
1190	review the application using an evaluation instrument developed
1191	by the Department of Education and make a final decision on
1192	whether to approve the application and grant the charter by
1193	March 1, and may condition the granting of a charter on the
1194	center's taking certain actions or maintaining certain
1195	conditions. Such actions and conditions must be provided to the
1196	applicant in writing. The district school board or community
1197	college board of trustees is not required to issue a charter to
1198	any person.
1199	(6)  SPONSOR.--A district school board or community college
1200	board of trustees or a consortium of one or more of each may
1201	sponsor a center in the county in which the board has
1202	jurisdiction.
1203	(d)1.  The Department of Education shall offer or arrange
1204	for training and technical assistance to applicants in
1205	developing business plans and estimating costs and income. This
1206	assistance shall address estimating startup costs, projecting
1207	enrollment, and identifying the types and amounts of state and
1208	federal financial assistance the center will be eligible to
1209	receive. The training shall include instruction in accurate
1210	financial planning and good business practices.
1211	2.  An applicant must participate in the training provided
1212	by the Department of Education prior to filing an application.
1213	The Department of Education may provide technical assistance to
1214	an applicant upon written request.
1215	(f)  The sponsor shall monitor and review the center's
1216	progress toward charter goals and shall monitor the center's
1217	revenues and expenditures. The sponsor shall perform the duties
1218	provided for in s. 1002.345.
1219	(10)  EXEMPTION FROM STATUTES.--
1220	(c)  A center must comply with the antidiscrimination
1221	provisions of s. 1000.05 and the provisions of s. 1002.33(24),
1222	relating to the employment of relatives.
1223	(13)  BOARD OF DIRECTORS AUTHORITY.--The board of directors
1224	of a center may decide matters relating to the operation of the
1225	school, including budgeting, curriculum, and operating
1226	procedures, subject to the center's charter. The board of
1227	directors is responsible for performing the duties provided for
1228	in s. 1002.345, including monitoring the corrective action plan.
1229	The board of directors must comply with the provisions of s.
1230	1002.33(25).
1231	Section 9.  Section 1002.345, Florida Statutes, is created
1232	to read:
1233	1002.345  Determination of financial weaknesses and
1234	financial emergencies for charter schools and charter technical
1235	career centers.--This section applies to charter schools
1236	operating pursuant to ss. 1002.33 and 1002.335, and to charter
1237	technical career centers operating pursuant to s. 1002.34.
1238	(1)  FINANCIAL WEAKNESS; REQUIREMENTS.--
1239	(a)  A charter school and a charter technical career center
1240	shall be subject to an expedited review by the sponsor when any
1241	one of the following conditions occurs:
1242	1.  An end-of-year financial deficit.
1243	2.  A substantial decline in student enrollment without a
1244	commensurate reduction in expenses.
1245	3.  Insufficient revenues to pay current operating
1246	expenses.
1247	4.  Insufficient revenues to pay long-term expenses.
1248	5.  Disproportionate administrative expenses.
1249	6.  Excessive debt.
1250	7.  Excessive expenditures.
1251	8.  Inadequate fund balances or reserves.
1252	9.  Failure to meet financial reporting requirements
1253	pursuant to s. 1002.33(9), s. 1002.335(7)(a)7., or s.
1254	1002.34(14).
1255	10.  Weak financial controls or other adverse financial
1256	conditions identified through an annual audit conducted pursuant
1257	to s. 218.39.
1258	11.  Negative financial findings cited in reports by the
1259	Auditor General or the Office of Program Policy Analysis and
1260	Government Accountability.
1261	(b)  A sponsor shall notify the governing board within 7
1262	working days when one or more of the conditions specified in
1263	paragraph (a) occur.
1264	(c)  The governing board and the sponsor shall develop a
1265	corrective action plan and file the plan with the Commissioner
1266	of Education within 30 working days. If the governing board and
1267	the sponsor are unable to agree on a corrective action plan, the
1268	Commissioner of Education shall determine the components of the
1269	plan. The governing board shall implement the plan.
1270	(d)  The governing board shall include the corrective
1271	action plan and the status of its implementation in the annual
1272	progress report to the sponsor that is required under s.
1273	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1274	(e)  If the governing board fails to implement the
1275	corrective action plan within 1 year, the State Board of
1276	Education shall prescribe any steps necessary for the charter
1277	school or the charter technical career center to comply with
1278	state requirements.
1279	(f)  The chair of the governing board shall annually appear
1280	before the State Board of Education and report on the
1281	implementation of the State Board of Education's requirements.
1282	(2)  FINANCIAL EMERGENCY; DEFICIT FUND BALANCE; DEFICIT NET
1283	ASSETS; REQUIREMENTS.--
1284	(a)  A charter school and a charter technical career center
1285	shall provide for a certified public accountant or auditor to
1286	conduct an annual financial audit in accordance with s. 218.39.
1287	(b)  The charter shall ensure that, if an annual financial
1288	audit of a charter school or charter technical career center
1289	reveals one or more of the conditions in s. 218.503(1) have
1290	occurred or will occur if action is not taken or if a charter
1291	school or charter technical career center has a deficit fund
1292	balance or deficit net assets, the auditor must notify the
1293	governing board of the charter school or charter technical
1294	career center, as appropriate, the sponsor, and the Commissioner
1295	of Education.
1296	(c)1.  When a financial audit conducted by a certified
1297	public accountant in accordance with s. 218.39 reveals that one
1298	or more of the conditions in s. 218.503(1) have occurred or will
1299	occur if action is not taken or when a deficit fund balance or
1300	deficit net assets exist, the auditor shall notify and provide
1301	the financial audit to the governing board of the charter school
1302	or charter technical career center, as appropriate, the sponsor,
1303	and the Commissioner of Education within 7 working days after
1304	the finding is made.
1305	2.  When the charter school or charter technical career
1306	center is found to be in a state of financial emergency pursuant
1307	to s. 218.503(4), the charter school or charter technical career
1308	center shall file a detailed financial recovery plan as provided
1309	for in s. 218.503 with the sponsor within 30 days after being
1310	notified by the Commissioner of Education that a financial
1311	recovery plan is needed.
1312	(d)  The sponsor shall file a copy of the financial
1313	recovery plan with the Commissioner of Education.
1314	(e)  The governing board shall include the financial
1315	recovery plan and the status of its implementation in the annual
1316	progress report to the sponsor which is required under s.
1317	1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
1318	(3)  REPORT.--The Commissioner of Education shall annually
1319	report to the State Board of Education each charter school and
1320	charter technical career center that is subject to a financial
1321	recovery plan or a corrective action plan under this section.
1322	(4)  RULES.--The State Board of Education shall adopt rules
1323	pursuant to ss. 120.536(1) and 120.54 for developing financial
1324	recovery and corrective action plans and establishing the
1325	criteria for defining each of the conditions in subsection (1).
1326	(5)  TECHNICAL ASSISTANCE.--The Department of Education
1327	shall provide technical assistance to charter schools, charter
1328	technical career centers, governing boards, and sponsors in
1329	developing financial recovery and corrective action plans.
1330	(6)  FAILURE TO CORRECT DEFICIENCIES.--The sponsor may
1331	choose not to renew or may terminate a charter if the charter
1332	school or charter technical career center fails to correct the
1333	deficiencies noted in the corrective action plan within 1 year
1334	or exhibits one or more financial emergency conditions as
1335	provided in s. 218.503 for 2 consecutive years. This subsection
1336	is not intended to affect a sponsor's authority to terminate or
1337	not renew a charter pursuant to s. 1002.33(8).
1338	Section 10.  This act shall take effect July 1, 2009.

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