CS/HB 1005

1	A bill to be entitled
2	An act relating to charter schools; amending ss. 11.45,
3	218.39, 218.50, and 218.501, F.S., relating to audit
4	reports by the Auditor General and local financial
5	management; conforming provisions to changes made by the
6	act; amending ss. 218.503 and 218.504, F.S.; providing
7	that a charter technical career center is subject to
8	certain requirements in a financial emergency; requiring
9	certain notification when specified conditions have
10	occurred or will occur if action is not taken; authorizing
11	the Commissioner of Education to require and approve a
12	financial recovery plan; amending s. 1002.33, F.S.;
13	providing for duties of a charter school sponsor and
14	governing board if a charter school experiences a
15	deteriorating financial condition or is in a financial
16	emergency; prohibiting a sponsor from denying a charter
17	for specified reasons; requiring use of an application
18	form and an evaluation instrument; requiring applicant
19	training and documentation; updating cross-references
20	relating to high school graduation requirements;
21	conforming provisions relating to financial audits;
22	requiring charter schools to disclose the identity of
23	relatives of charter school personnel; authorizing the
24	Commissioner of Education to terminate a charter for good
25	cause; providing that the immediate termination of a
26	charter is exempt from certain hearing requirements;
27	requiring monthly financial statements; permitting charter
28	schools to provide an enrollment preference to students
29	residing in communities operated by a homeowners' or
30	condominium association under specified circumstances;
31	requiring that a charter school comply with constitutional
32	limitations on class size; requiring a process to assess
33	the provision of sponsor services; providing for the
34	disclosure of the performance of a charter school that is
35	not given a school grade or school improvement rating;
36	requiring charter schools to provide student assessment
37	data to the public; providing reporting requirements;
38	providing restrictions on the employment of relatives;
39	providing an exception; requiring that members of a
40	charter school governing board follow certain standards of
41	conduct and, under specified circumstances, file a
42	disclosure of financial interests; amending s. 1002.34,
43	F.S.; providing additional duties for charter technical
44	career centers, applicants, sponsors, and governing
45	boards; requiring use of an application form and an
46	evaluation instrument; requiring applicant training;
47	requiring charter technical career centers to disclose the
48	identity of relatives of center personnel; providing
49	duties of a sponsor if a charter technical career center
50	experiences a deteriorating financial condition or is in a
51	financial emergency; providing restrictions on the
52	employment of relatives; requiring monthly financial
53	statements; requiring compliance with standards of conduct
54	and disclosure of financial interests; creating s.
55	1002.345, F.S.; establishing criteria and requirements for
56	charter schools and charter technical career centers that
57	have a deteriorating financial condition or are in a state
58	of financial emergency; establishing requirements for
59	charter schools, charter technical career centers,
60	governing boards, and sponsors; providing for corrective
61	action and financial recovery plans; providing for duties
62	of auditors, the Commissioner of Education, and the
63	Department of Education; requiring the State Board of
64	Education to adopt rules; providing grounds for
65	termination or nonrenewal of a charter; amending s.
66	1013.62, F.S.; expanding purposes for which charter school
67	capital outlay funds may be used; providing an effective
68	date.
69
70	Be It Enacted by the Legislature of the State of Florida:
71
72	Section 1.  Paragraph (e) of subsection (7) and subsection
73	(8) of section 11.45, Florida Statutes, are amended to read:
74	11.45  Definitions; duties; authorities; reports; rules.--
75	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
76	(e)  The Auditor General shall notify the Governor or the
77	Commissioner of Education, as appropriate, and the Legislative
78	Auditing Committee of any audit report reviewed by the Auditor
79	General pursuant to paragraph (b) which contains a statement
80	that a local governmental entity, charter school, charter
81	technical career center, or district school board has met one or
82	more of the conditions specified in s. 218.503. If the Auditor
83	General requests a clarification regarding information included
84	in an audit report to determine whether a local governmental
85	entity, charter school, charter technical career center, or
86	district school board has met one or more of the conditions
87	specified in s. 218.503, the requested clarification must be
88	provided within 45 days after the date of the request. If the
89	local governmental entity, charter school, charter technical
90	career center, or district school board does not comply with the
91	Auditor General's request, the Auditor General shall notify the
92	Legislative Auditing Committee. If, after obtaining the
93	requested clarification, the Auditor General determines that the
94	local governmental entity, charter school, charter technical
95	career center, or district school board has met one or more of
96	the conditions specified in s. 218.503, he or she shall notify
97	the Governor or the Commissioner of Education, as appropriate,
98	and the Legislative Auditing Committee.
99	(8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
100	consultation with the Board of Accountancy, shall adopt rules
101	for the form and conduct of all financial audits performed by
102	independent certified public accountants pursuant to ss.
103	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
104	audits of local governmental entities, charter schools, charter
105	technical career centers, and district school boards must
106	include, but are not limited to, requirements for the reporting
107	of information necessary to carry out the purposes of the Local
108	Governmental Entity, Charter School, Charter Technical Career
109	Center, and District School Board Financial Emergencies Act as
110	stated in s. 218.501.
111	Section 2.  Subsection (5) of section 218.39, Florida
112	Statutes, is amended to read:
113	218.39  Annual financial audit reports.--
114	(5)  At the conclusion of the audit, the auditor shall
115	discuss with the chair of each local governmental entity or the
116	chair's designee, or with the elected official of each county
117	agency or with the elected official's designee, or with the
118	chair of the district school board or the chair's designee, or
119	with the chair of the board of the charter school or the chair's
120	designee, or with the chair of the charter technical career
121	center or the chair's designee, as appropriate, all of the
122	auditor's comments that will be included in the audit report. If
123	the officer is not available to discuss the auditor's comments,
124	their discussion is presumed when the comments are delivered in
125	writing to his or her office. The auditor shall notify each
126	member of the governing body of a local governmental entity,
127	district school board, or charter school, or charter technical
128	career center for which deteriorating financial conditions exist
129	that may cause a condition described in s. 218.503(1) to occur
130	if actions are not taken to address such conditions.
131	Section 3.  Section 218.50, Florida Statutes, is amended to
132	read:
133	218.50  Short title.--Sections 218.50-218.504 may be cited
134	as the "Local Governmental Entity, Charter School, Charter
135	Technical Career Center, and District School Board Financial
136	Emergencies Act."
137	Section 4.  Section 218.501, Florida Statutes, is amended
138	to read:
139	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
140	(1)  To promote the fiscal responsibility of local
141	governmental entities, charter schools, charter technical career
142	centers, and district school boards.
143	(2)  To assist local governmental entities, charter
144	schools, charter technical career centers, and district school
145	boards in providing essential services without interruption and
146	in meeting their financial obligations.
147	(3)  To assist local governmental entities, charter
148	schools, charter technical career centers, and district school
149	boards through the improvement of local financial management
150	procedures.
151	Section 5.  Subsections (1), (2), (3), and (4) of section
152	218.503, Florida Statutes, are amended to read:
153	218.503  Determination of financial emergency.--
154	(1)  Local governmental entities, charter schools, charter
155	technical career centers, and district school boards shall be
156	subject to review and oversight by the Governor, the charter
157	school sponsor, the charter technical career center sponsor, or
158	the Commissioner of Education, as appropriate, when any one of
159	the following conditions occurs:
160	(a)  Failure within the same fiscal year in which due to
161	pay short-term loans or failure to make bond debt service or
162	other long-term debt payments when due, as a result of a lack of
163	funds.
164	(b)  Failure to pay uncontested claims from creditors
165	within 90 days after the claim is presented, as a result of a
166	lack of funds.
167	(c)  Failure to transfer at the appropriate time, due to
168	lack of funds:
169	1.  Taxes withheld on the income of employees; or
170	2.  Employer and employee contributions for:
171	a.  Federal social security; or
172	b.  Any pension, retirement, or benefit plan of an
173	employee.
174	(d)  Failure for one pay period to pay, due to lack of
175	funds:
176	1.  Wages and salaries owed to employees; or
177	2.  Retirement benefits owed to former employees.
178	(e)  An unreserved or total fund balance or retained
179	earnings deficit, or unrestricted or total net assets deficit,
180	as reported on the balance sheet or statement of net assets on
181	the general purpose or fund financial statements, for which
182	sufficient resources of the local governmental entity, charter
183	school, charter technical career center, or district school
184	board, as reported on the balance sheet or statement of net
185	assets on the general purpose or fund financial statements, are
186	not available to cover the deficit. Resources available to cover
187	reported deficits include net assets that are not otherwise
188	restricted by federal, state, or local laws, bond covenants,
189	contractual agreements, or other legal constraints. Fixed or
190	capital assets, the disposal of which would impair the ability
191	of a local governmental entity, charter school, charter
192	technical career center, or district school board to carry out
193	its functions, are not considered resources available to cover
194	reported deficits.
195	(2)  A local governmental entity shall notify the Governor
196	and the Legislative Auditing Committee, a charter school shall
197	notify the charter school sponsor, the Commissioner of
198	Education, and the Legislative Auditing Committee, a charter
199	technical career center shall notify the charter technical
200	career center sponsor, the Commissioner of Education, and the
201	Legislative Auditing Committee, and a district school board
202	shall notify the Commissioner of Education and the Legislative
203	Auditing Committee, when one or more of the conditions specified
204	in subsection (1) have occurred or will occur if action is not
205	taken to assist the local governmental entity, charter school,
206	charter technical career center, or district school board. In
207	addition, any state agency must, within 30 days after a
208	determination that one or more of the conditions specified in
209	subsection (1) have occurred or will occur if action is not
210	taken to assist the local governmental entity, charter school,
211	charter technical career center, or district school board,
212	notify the Governor, charter school sponsor, charter technical
213	career center sponsor, or the Commissioner of Education, as
214	appropriate, and the Legislative Auditing Committee.
215	(3)  Upon notification that one or more of the conditions
216	in subsection (1) have occurred or will occur if action is not
217	taken to assist the local governmental entity or district school
218	board exist, the Governor or his or her designee shall contact
219	the local governmental entity or the Commissioner of Education
220	or his or her designee shall contact the district school board
221	to determine what actions have been taken by the local
222	governmental entity or the district school board to resolve or
223	prevent the condition. The Governor or the Commissioner of
224	Education, as appropriate, shall determine whether the local
225	governmental entity or the district school board needs state
226	assistance to resolve or prevent the condition. If state
227	assistance is needed, the local governmental entity or district
228	school board is considered to be in a state of financial
229	emergency. The Governor or the Commissioner of Education, as
230	appropriate, has the authority to implement measures as set
231	forth in ss. 218.50-218.504 to assist the local governmental
232	entity or district school board in resolving the financial
233	emergency. Such measures may include, but are not limited to:
234	(a)  Requiring approval of the local governmental entity's
235	budget by the Governor or approval of the district school
236	board's budget by the Commissioner of Education.
237	(b)  Authorizing a state loan to a local governmental
238	entity and providing for repayment of same.
239	(c)  Prohibiting a local governmental entity or district
240	school board from issuing bonds, notes, certificates of
241	indebtedness, or any other form of debt until such time as it is
242	no longer subject to this section.
243	(d)  Making such inspections and reviews of records,
244	information, reports, and assets of the local governmental
245	entity or district school board. The appropriate local officials
246	shall cooperate in such inspections and reviews.
247	(e)  Consulting with officials and auditors of the local
248	governmental entity or the district school board and the
249	appropriate state officials regarding any steps necessary to
250	bring the books of account, accounting systems, financial
251	procedures, and reports into compliance with state requirements.
252	(f)  Providing technical assistance to the local
253	governmental entity or the district school board.
254	(g)1.  Establishing a financial emergency board to oversee
255	the activities of the local governmental entity or the district
256	school board. If a financial emergency board is established for
257	a local governmental entity, the Governor shall appoint board
258	members and select a chair. If a financial emergency board is
259	established for a district school board, the State Board of
260	Education shall appoint board members and select a chair. The
261	financial emergency board shall adopt such rules as are
262	necessary for conducting board business. The board may:
263	a.  Make such reviews of records, reports, and assets of
264	the local governmental entity or the district school board as
265	are needed.
266	b.  Consult with officials and auditors of the local
267	governmental entity or the district school board and the
268	appropriate state officials regarding any steps necessary to
269	bring the books of account, accounting systems, financial
270	procedures, and reports of the local governmental entity or the
271	district school board into compliance with state requirements.
272	c.  Review the operations, management, efficiency,
273	productivity, and financing of functions and operations of the
274	local governmental entity or the district school board.
275	2.  The recommendations and reports made by the financial
276	emergency board must be submitted to the Governor for local
277	governmental entities or to the Commissioner of Education and
278	the State Board of Education for district school boards for
279	appropriate action.
280	(h)  Requiring and approving a plan, to be prepared by
281	officials of the local governmental entity or the district
282	school board in consultation with the appropriate state
283	officials, prescribing actions that will cause the local
284	governmental entity or district school board to no longer be
285	subject to this section. The plan must include, but need not be
286	limited to:
287	1.  Provision for payment in full of obligations outlined
288	in subsection (1), designated as priority items, that are
289	currently due or will come due.
290	2.  Establishment of priority budgeting or zero-based
291	budgeting in order to eliminate items that are not affordable.
292	3.  The prohibition of a level of operations which can be
293	sustained only with nonrecurring revenues.
294	(4)(a)  Upon notification that one or more of the
295	conditions in subsection (1) have occurred or will occur if
296	action is not taken to assist the charter school exist, the
297	charter school sponsor or the sponsor's designee and the
298	Commissioner of Education shall contact the charter school
299	governing body to determine what actions have been taken by the
300	charter school governing body to resolve or prevent the
301	condition. The Commissioner of Education charter school sponsor
302	has the authority to require and approve a financial recovery
303	plan, to be prepared by the charter school governing body,
304	prescribing actions that will resolve or prevent the condition
305	cause the charter school to no longer be subject to this
306	section. The Department of Education shall establish guidelines
307	for developing such plans.
308	(b)  Upon notification that one or more of the conditions
309	in subsection (1) have occurred or will occur if action is not
310	taken to assist the charter technical career center, the charter
311	technical career center sponsor or the sponsor's designee and
312	the Commissioner of Education shall contact the charter
313	technical career center governing body to determine what actions
314	have been taken by the governing body to resolve or prevent the
315	condition. The Commissioner of Education may require and approve
316	a financial recovery plan, to be prepared by the charter
317	technical career center governing body, prescribing actions that
318	will resolve or prevent the condition.
319	(c)  The Commissioner of Education shall determine if the
320	charter school or charter technical career center needs a
321	financial recovery plan to resolve the condition. If the
322	Commissioner of Education determines that a financial recovery
323	plan is needed, the charter school or charter technical career
324	center is considered to be in a state of financial emergency.
325
326	The Department of Education, with the involvement of sponsors,
327	charter schools, and charter technical career centers, shall
328	establish guidelines for developing a financial recovery plan.
329	Section 6.  Section 218.504, Florida Statutes, is amended
330	to read:
331	218.504  Cessation of state action.--The Governor or the
332	Commissioner of Education, as appropriate, has the authority to
333	terminate all state actions pursuant to ss. 218.50-218.504.
334	Cessation of state action must not occur until the Governor or
335	the Commissioner of Education, as appropriate, has determined
336	that:
337	(1)  The local governmental entity, charter school, charter
338	technical career center, or district school board:
339	(a)  Has established and is operating an effective
340	financial accounting and reporting system.
341	(b)  Has resolved the conditions outlined in s. 218.503(1).
342	(2)  None of the conditions outlined in s. 218.503(1)
343	exists.
344	Section 7.  Paragraph (b) of subsection (5), paragraphs
345	(a), (b), and (g) of subsection (6), paragraph (a) of subsection
346	(7), paragraphs (a) and (d) of subsection (8), paragraphs (g)
347	through (q) of subsection (9), paragraph (d) of subsection (10),
348	subsection (16), paragraph (a) of subsection (20), and
349	subsections (21) and (23) of section 1002.33, Florida Statutes,
350	are amended, present subsection (24) of that section is
351	renumbered as subsection (26), and new subsections (24) and (25)
352	are added to that section, to read:
353	1002.33  Charter schools.--
354	(5)  SPONSOR; DUTIES.--
355	(b)  Sponsor duties.--
356	1.a.  The sponsor shall monitor and review the charter
357	school in its progress toward the goals established in the
358	charter.
359	b.  The sponsor shall monitor the revenues and expenditures
360	of the charter school and perform the duties provided in s.
361	1002.345.
362	c.  The sponsor may not deny approve a charter for a
363	charter school because before the applicant has not secured
364	space, equipment, or personnel, if the applicant indicates
365	approval is necessary for it to raise working funds.
366	d.  The sponsor's policies shall not apply to a charter
367	school unless mutually agreed to by both the sponsor and the
368	charter school.
369	e.  The sponsor shall ensure that the charter is innovative
370	and consistent with the state education goals established by s.
371	1000.03(5).
372	f.  The sponsor shall ensure that the charter school
373	participates in the state's education accountability system. If
374	a charter school falls short of performance measures included in
375	the approved charter, the sponsor shall report such shortcomings
376	to the Department of Education.
377	g.  The sponsor shall not be liable for civil damages under
378	state law for personal injury, property damage, or death
379	resulting from an act or omission of an officer, employee,
380	agent, or governing body of the charter school.
381	h.  The sponsor shall not be liable for civil damages under
382	state law for any employment actions taken by an officer,
383	employee, agent, or governing body of the charter school.
384	i.  The sponsor's duties to monitor the charter school
385	shall not constitute the basis for a private cause of action.
386	j.  The sponsor shall not impose additional reporting
387	requirements on a charter school without providing reasonable
388	and specific justification in writing to the charter school.
389	2.  Immunity for the sponsor of a charter school under
390	subparagraph 1. applies only with respect to acts or omissions
391	not under the sponsor's direct authority as described in this
392	section.
393	3.  Nothing contained in This paragraph does not waive
394	shall be considered a waiver of sovereign immunity by a district
395	school board's sovereign immunity board.
396	4.  A community college may work with the school district
397	or school districts in its designated service area to develop
398	charter schools that offer secondary education. These charter
399	schools must include an option for students to receive an
400	associate degree upon high school graduation. District school
401	boards shall cooperate with and assist the community college on
402	the charter application. Community college applications for
403	charter schools are not subject to the time deadlines outlined
404	in subsection (6) and may be approved by the district school
405	board at any time during the year. Community colleges may shall
406	not report FTE for any students who receive FTE funding through
407	the Florida Education Finance Program.
408	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
409	applications are subject to the following requirements:
410	(a)  A person or entity wishing to open a charter school
411	shall prepare and submit an application on a model application
412	form prepared by the Department of Education which that:
413	1.  Demonstrates how the school will use the guiding
414	principles and meet the statutorily defined purpose of a charter
415	school.
416	2.  Provides a detailed curriculum plan that illustrates
417	how students will be provided services to attain the Sunshine
418	State Standards.
419	3.  Contains goals and objectives for improving student
420	learning and measuring that improvement. These goals and
421	objectives must indicate how much academic improvement students
422	are expected to show each year, how success will be evaluated,
423	and the specific results to be attained through instruction.
424	4.  Describes the reading curriculum and differentiated
425	strategies that will be used for students reading at grade level
426	or higher and a separate curriculum and strategies for students
427	who are reading below grade level. A sponsor shall deny a
428	charter if the school does not propose a reading curriculum that
429	is consistent with effective teaching strategies that are
430	grounded in scientifically based reading research.
431	5.  Contains an annual financial plan for each year
432	requested by the charter for operation of the school for up to 5
433	years. This plan must contain anticipated fund balances based on
434	revenue projections, a spending plan based on projected revenues
435	and expenses, and a description of controls that will safeguard
436	finances and projected enrollment trends.
437	6.  Documents that the applicant has participated in the
438	training required in subparagraph (g)2.
439	(b)  A sponsor shall receive and review all applications
440	for a charter school using an evaluation instrument developed by
441	the Department of Education. Beginning with the 2007-2008 school
442	year, a sponsor shall receive and consider charter school
443	applications received on or before August 1 of each calendar
444	year for charter schools to be opened at the beginning of the
445	school district's next school year, or to be opened at a time
446	agreed to by the applicant and the sponsor. A sponsor may
447	receive applications later than this date if it chooses. A
448	sponsor may not charge an applicant for a charter any fee for
449	the processing or consideration of an application, and a sponsor
450	may not base its consideration or approval of an application
451	upon the promise of future payment of any kind.
452	1.  In order to facilitate an accurate budget projection
453	process, a sponsor shall be held harmless for FTE students who
454	are not included in the FTE projection due to approval of
455	charter school applications after the FTE projection deadline.
456	In a further effort to facilitate an accurate budget projection,
457	within 15 calendar days after receipt of a charter school
458	application, a sponsor shall report to the Department of
459	Education the name of the applicant entity, the proposed charter
460	school location, and its projected FTE.
461	2.  In order to ensure fiscal responsibility, an
462	application for a charter school shall include a full accounting
463	of expected assets, a projection of expected sources and amounts
464	of income, including income derived from projected student
465	enrollments and from community support, and an expense
466	projection that includes full accounting of the costs of
467	operation, including start-up costs.
468	3.  A sponsor shall by a majority vote approve or deny an
469	application no later than 60 calendar days after the application
470	is received, unless the sponsor and the applicant mutually agree
471	in writing to temporarily postpone the vote to a specific date,
472	at which time the sponsor shall by a majority vote approve or
473	deny the application. If the sponsor fails to act on the
474	application, an applicant may appeal to the State Board of
475	Education as provided in paragraph (c). If an application is
476	denied, the sponsor shall, within 10 calendar days after such
477	denial, articulate in writing the specific reasons, based upon
478	good cause, supporting its denial of the charter application and
479	shall provide the letter of denial and supporting documentation
480	to the applicant and to the Department of Education supporting
481	those reasons.
482	4.  For budget projection purposes, the sponsor shall
483	report to the Department of Education the approval or denial of
484	a charter application within 10 calendar days after such
485	approval or denial. In the event of approval, the report to the
486	Department of Education shall include the final projected FTE
487	for the approved charter school.
488	5.  Upon approval of a charter application, the initial
489	startup shall commence with the beginning of the public school
490	calendar for the district in which the charter is granted unless
491	the sponsor allows a waiver of this subparagraph provision for
492	good cause.
493	(g)1.  The Department of Education shall offer or arrange
494	for training and technical assistance to charter school
495	applicants in developing business plans and estimating costs and
496	income. This assistance shall address estimating startup costs,
497	projecting enrollment, and identifying the types and amounts of
498	state and federal financial assistance the charter school may
499	will be eligible to receive. The department may provide other
500	technical assistance to an applicant upon written request.
501	2.  A charter school applicant must participate in the
502	training provided by the Department of Education before filing
503	an application. However, a sponsor may require the charter
504	school applicant to attend training provided by the sponsor in
505	lieu of the department's training if the sponsor's training
506	standards meet or exceed the standards developed by the
507	Department of Education. The training shall include instruction
508	in accurate financial planning and good business practices. If
509	the applicant is a management company or other nonprofit
510	organization, the charter school principal, if he or she has
511	been hired, and a qualified representative of the management
512	company or other nonprofit organization must also participate in
513	the training.
514	(7)  CHARTER.--The major issues involving the operation of
515	a charter school shall be considered in advance and written into
516	the charter. The charter shall be signed by the governing body
517	of the charter school and the sponsor, following a public
518	hearing to ensure community input.
519	(a)  The charter shall address, and criteria for approval
520	of the charter shall be based on:
521	1.  The school's mission, the students to be served, and
522	the ages and grades to be included.
523	2.  The focus of the curriculum, the instructional methods
524	to be used, any distinctive instructional techniques to be
525	employed, and identification and acquisition of appropriate
526	technologies needed to improve educational and administrative
527	performance which include a means for promoting safe, ethical,
528	and appropriate uses of technology which comply with legal and
529	professional standards. The charter shall ensure that reading is
530	a primary focus of the curriculum and that resources are
531	provided to identify and provide specialized instruction for
532	students who are reading below grade level. The curriculum and
533	instructional strategies for reading must be consistent with the
534	Sunshine State Standards and grounded in scientifically based
535	reading research.
536	3.  The current incoming baseline standard of student
537	academic achievement, the outcomes to be achieved, and the
538	method of measurement that will be used. The criteria listed in
539	this subparagraph shall include a detailed description for each
540	of the following:
541	a.  How the baseline student academic achievement levels
542	and prior rates of academic progress will be established.
543	b.  How these baseline rates will be compared to rates of
544	academic progress achieved by these same students while
545	attending the charter school.
546	c.  To the extent possible, how these rates of progress
547	will be evaluated and compared with rates of progress of other
548	closely comparable student populations.
549
550	The district school board is required to provide academic
551	student performance data to charter schools for each of their
552	students coming from the district school system, as well as
553	rates of academic progress of comparable student populations in
554	the district school system.
555	4.  The methods used to identify the educational strengths
556	and needs of students and how well educational goals and
557	performance standards are met by students attending the charter
558	school. Included in The methods shall provide is a means for the
559	charter school to ensure accountability to its constituents by
560	analyzing student performance data and by evaluating the
561	effectiveness and efficiency of its major educational programs.
562	Students in charter schools shall, at a minimum, participate in
563	the statewide assessment program created under s. 1008.22.
564	5.  In secondary charter schools, a method for determining
565	that a student has satisfied the requirements for graduation in
566	s. 1003.428, s. 1003.429, or s. 1003.43.
567	6.  A method for resolving conflicts between the governing
568	body of the charter school and the sponsor.
569	7.  The admissions procedures and dismissal procedures,
570	including the school's code of student conduct.
571	8.  The ways by which the school will achieve a
572	racial/ethnic balance reflective of the community it serves or
573	within the racial/ethnic range of other public schools in the
574	same school district.
575	9.  The financial and administrative management of the
576	school, including a reasonable demonstration of the professional
577	experience or competence of those individuals or organizations
578	applying to operate the charter school or those hired or
579	retained to perform such professional services and the
580	description of clearly delineated responsibilities and the
581	policies and practices needed to effectively manage the charter
582	school. A description of internal audit procedures and
583	establishment of controls to ensure that financial resources are
584	properly managed must be included. Both public sector and
585	private sector professional experience shall be equally valid in
586	such a consideration.
587	10.  The asset and liability projections required in the
588	application which are incorporated into the charter and which
589	shall be compared with information provided in the annual report
590	of the charter school. The charter shall ensure that, if a
591	charter school internal audit or annual financial audit reveals
592	a state of financial emergency as defined in s. 218.503 or
593	deficit financial position, the auditors are required to notify
594	the charter school governing board, the sponsor, and the
595	Department of Education. The internal auditor shall report such
596	findings in the form of an exit interview to the principal or
597	the principal administrator of the charter school and the chair
598	of the governing board within 7 working days after finding the
599	state of financial emergency or deficit position. A final report
600	shall be provided to the entire governing board, the sponsor,
601	and the Department of Education within 14 working days after the
602	exit interview. When a charter school is in a state of financial
603	emergency, the charter school shall file a detailed financial
604	recovery plan with the sponsor. The department, with the
605	involvement of both sponsors and charter schools, shall
606	establish guidelines for developing such plans.
607	11.  A description of procedures that identify various
608	risks and provide for a comprehensive approach to reduce the
609	impact of losses; plans to ensure the safety and security of
610	students and staff; plans to identify, minimize, and protect
611	others from violent or disruptive student behavior; and the
612	manner in which the school will be insured, including whether or
613	not the school will be required to have liability insurance,
614	and, if so, the terms and conditions thereof and the amounts of
615	coverage.
616	12.  The term of the charter which shall provide for
617	cancellation of the charter if insufficient progress has been
618	made in attaining the student achievement objectives of the
619	charter and if it is not likely that such objectives can be
620	achieved before expiration of the charter. The initial term of a
621	charter shall be for 4 or 5 years. In order to facilitate access
622	to long-term financial resources for charter school
623	construction, charter schools that are operated by a
624	municipality or other public entity as provided by law are
625	eligible for up to a 15-year charter, subject to approval by the
626	district school board. A charter lab school is eligible for a
627	charter for a term of up to 15 years. In addition, to facilitate
628	access to long-term financial resources for charter school
629	construction, charter schools that are operated by a private,
630	not-for-profit, s. 501(c)(3) status corporation are eligible for
631	up to a 15-year charter, subject to approval by the district
632	school board. Such long-term charters remain subject to annual
633	review and may be terminated during the term of the charter, but
634	only according to the provisions set forth in subsection (8).
635	13.  The facilities to be used and their location.
636	14.  The qualifications to be required of the teachers and
637	the potential strategies used to recruit, hire, train, and
638	retain qualified staff to achieve best value.
639	15.  The governance structure of the school, including the
640	status of the charter school as a public or private employer as
641	required in paragraph (12)(i).
642	16.  A timetable for implementing the charter which
643	addresses the implementation of each element thereof and the
644	date by which the charter shall be awarded in order to meet this
645	timetable.
646	17.  In the case of an existing public school that is being
647	converted to charter status, alternative arrangements for
648	current students who choose not to attend the charter school and
649	for current teachers who choose not to teach in the charter
650	school after conversion in accordance with the existing
651	collective bargaining agreement or district school board rule in
652	the absence of a collective bargaining agreement. However,
653	alternative arrangements shall not be required for current
654	teachers who choose not to teach in a charter lab school, except
655	as authorized by the employment policies of the state university
656	which grants the charter to the lab school.
657	18.  Full disclosure of the identity of all relatives
658	employed by the charter school who are related to the charter
659	school owner, president, chair of the governing board of
660	directors, superintendent, governing board member, principal,
661	assistant principal, or any other person employed by the charter
662	school who has equivalent decisionmaking authority. For the
663	purpose of this subparagraph, the term "relative" means father,
664	mother, son, daughter, brother, sister, uncle, aunt, first
665	cousin, nephew, niece, husband, wife, father-in-law, mother-in-
666	law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
667	stepfather, stepmother, stepson, stepdaughter, stepbrother,
668	stepsister, half brother, or half sister.
669	(8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
670	(a)1.  The sponsor may choose not to renew or may terminate
671	the charter for any of the following grounds:
672	a.1.  Failure to participate in the state's education
673	accountability system created in s. 1008.31, as required in this
674	section, or failure to meet the requirements for student
675	performance stated in the charter.
676	b.2.  Failure to meet generally accepted standards of
677	fiscal management.
678	c.3.  Violation of law.
679	2.  The sponsor may show other good cause not to renew or
680	to terminate a charter to the Commissioner of Education who may
681	terminate the charter on this basis.
682	4.  Other good cause shown.
683	(d)  A charter may be terminated immediately if the sponsor
684	determines that good cause has been shown or if the health,
685	safety, or welfare of the students is threatened. The sponsor's
686	determination is not subject to an informal hearing under
687	paragraph (b) or pursuant to chapter 120. The sponsor shall
688	notify in writing the charter school's governing body, the
689	charter school principal, and the department if a charter is
690	immediately terminated. The sponsor shall clearly identify the
691	specific issues that resulted in the immediate termination and
692	provide evidence of prior notification of issues resulting in
693	the immediate termination when appropriate. The school district
694	in which the charter school is located shall assume operation of
695	the school under these circumstances. The charter school's
696	governing board may, within 30 days after receiving the
697	sponsor's decision to terminate the charter, appeal the decision
698	pursuant to the procedure established in subsection (6).
699	(9)  CHARTER SCHOOL REQUIREMENTS.--
700	(g)  A charter school shall provide for an annual financial
701	audit in accordance with s. 218.39. Financial audits that reveal
702	a state of financial emergency as defined in s. 218.503 and are
703	conducted by a certified public accountant or auditor in
704	accordance with s. 218.39 shall be provided to the governing
705	body of the charter school within 7 working days after finding
706	that a state of financial emergency exists. When a charter
707	school is found to be in a state of financial emergency by a
708	certified public accountant or auditor, the charter school must
709	file a detailed financial recovery plan with the sponsor within
710	30 days after receipt of the audit.
711	(g)(h)  In order to provide financial information that is
712	comparable to that reported for other public schools, charter
713	schools are to maintain all financial records that which
714	constitute their accounting system:
715	1.  In accordance with the accounts and codes prescribed in
716	the most recent issuance of the publication titled "Financial
717	and Program Cost Accounting and Reporting for Florida Schools";
718	or
719	2.  At the discretion of the charter school governing
720	board, a charter school may elect to follow generally accepted
721	accounting standards for not-for-profit organizations, but must
722	reformat this information for reporting according to this
723	paragraph.
724
725	Charter schools shall provide annual financial report and
726	program cost report information in the state-required formats
727	for inclusion in district reporting in compliance with s.
728	1011.60(1). Charter schools that are operated by a municipality
729	or are a component unit of a parent nonprofit organization may
730	use the accounting system of the municipality or the parent but
731	must reformat this information for reporting according to this
732	paragraph. A charter school shall provide a monthly financial
733	statement to the sponsor. The content and form of the monthly
734	financial statement shall be prescribed by the Department of
735	Education.
736	(h)(i)  The governing board of the charter school shall
737	annually adopt and maintain an operating budget.
738	(i)(j)  The governing body of the charter school shall
739	exercise continuing oversight over charter school operations.
740	(j)(k)  The governing body of the charter school shall be
741	responsible for:
742	1.  Ensuring that the charter school has retained the
743	services of a certified public accountant or auditor for the
744	annual financial audit, pursuant to s. 1002.345(2) paragraph
745	(g), who shall submit the report to the governing body.
746	2.  Reviewing and approving the audit report, including
747	audit findings and recommendations for the financial recovery
748	plan.
749	3.a.  Performing the duties in s. 1002.345, including
750	monitoring a corrective action plan.
751	b.  Monitoring a financial recovery plan in order to ensure
752	compliance.
753	4.  Participating in governance training approved by the
754	department which that must include government in the sunshine,
755	conflicts of interest, ethics, and financial responsibility.
756	Members of the governing body shall not be required to attend
757	governance training more than once every 3 years.
758	(k)(l)  The governing body of the charter school shall
759	report its progress annually to its sponsor, which shall forward
760	the report to the Commissioner of Education at the same time as
761	other annual school accountability reports. The Department of
762	Education shall develop a uniform, online annual accountability
763	report to be completed by charter schools. This report shall be
764	easy to utilize and contain demographic information, student
765	performance data, and financial accountability information. A
766	charter school shall not be required to provide information and
767	data that is duplicative and already in the possession of the
768	department. The Department of Education shall include in its
769	compilation a notation if a school failed to file its report by
770	the deadline established by the department. The report shall
771	include at least the following components:
772	1.  Student achievement performance data, including the
773	information required for the annual school report and the
774	education accountability system governed by ss. 1008.31 and
775	1008.345. Charter schools are subject to the same accountability
776	requirements as other public schools, including reports of
777	student achievement information that links baseline student data
778	to the school's performance projections identified in the
779	charter. The charter school shall identify reasons for any
780	difference between projected and actual student performance.
781	2.  Financial status of the charter school which must
782	include revenues and expenditures at a level of detail that
783	allows for analysis of the charter school's ability to meet
784	financial obligations and timely repayment of debt.
785	3.  Documentation of the facilities in current use and any
786	planned facilities for use by the charter school for instruction
787	of students, administrative functions, or investment purposes.
788	4.  Descriptive information about the charter school's
789	personnel, including salary and benefit levels of charter school
790	employees, the proportion of instructional personnel who hold
791	professional or temporary certificates, and the proportion of
792	instructional personnel teaching in-field or out-of-field.
793	(l)(m)  A charter school shall not levy taxes or issue
794	bonds secured by tax revenues.
795	(m)(n)  A charter school shall provide instruction for at
796	least the number of days required by law for other public
797	schools, and may provide instruction for additional days.
798	(n)(o)  The director and a representative of the governing
799	body of a charter school that has received a school grade of "D"
800	under s. 1008.34(2) shall appear before the sponsor or the
801	sponsor's staff at least once a year to present information
802	concerning each contract component having noted deficiencies.
803	The sponsor shall communicate at the meeting, and in writing to
804	the director, the services provided to the school to help the
805	school address its deficiencies.
806	(o)(p)  Upon notification that a charter school receives a
807	school grade of "D" for 2 consecutive years or a school grade of
808	"F" under s. 1008.34(2), the charter school sponsor or the
809	sponsor's staff shall require the director and a representative
810	of the governing body to submit to the sponsor for approval a
811	school improvement plan to raise student achievement and to
812	implement the plan. The sponsor has the authority to approve a
813	school improvement plan that the charter school will implement
814	in the following school year. The sponsor may also consider the
815	State Board of Education's recommended action pursuant to s.
816	1008.33(1) as part of the school improvement plan. The
817	Department of Education shall offer technical assistance and
818	training to the charter school and its governing body and
819	establish guidelines for developing, submitting, and approving
820	such plans.
821	1.  If the charter school fails to improve its student
822	performance from the year immediately prior to the
823	implementation of the school improvement plan, the sponsor shall
824	place the charter school on probation and shall require the
825	charter school governing body to take one of the following
826	corrective actions:
827	a.  Contract for the educational services of the charter
828	school;
829	b.  Reorganize the school at the end of the school year
830	under a new director or principal who is authorized to hire new
831	staff and implement a plan that addresses the causes of
832	inadequate progress; or
833	c.  Reconstitute the charter school.
834	2.  A charter school that is placed on probation shall
835	continue the corrective actions required under subparagraph 1.
836	until the charter school improves its student performance from
837	the year prior to the implementation of the school improvement
838	plan.
839	3.  Notwithstanding any provision of this paragraph, the
840	sponsor may terminate the charter at any time pursuant to the
841	provisions of subsection (8).
842	(p)(q)  The director and a representative of the governing
843	body of a graded charter school that has submitted a school
844	improvement plan or has been placed on probation under paragraph
845	(o) (p) shall appear before the sponsor or the sponsor's staff
846	at least once a year to present information regarding the
847	corrective strategies that are being implemented by the school
848	pursuant to the school improvement plan. The sponsor shall
849	communicate at the meeting, and in writing to the director, the
850	services provided to the school to help the school address its
851	deficiencies.
852	(10)  ELIGIBLE STUDENTS.--
853	(d)  A charter school may give enrollment preference to the
854	following student populations:
855	1.  Students who are siblings of a student enrolled in the
856	charter school.
857	2.  Students who are the children of a member of the
858	governing board of the charter school.
859	3.  Students who are the children of an employee of the
860	charter school.
861	4.  Students who reside in a community operated by a:
862	a.  Homeowners' association as defined in s. 720.301(9) if
863	the association permits the charter school to utilize a portion
864	of the association's common area as defined in s. 720.301(2); or
865	b.  Condominium association as defined in s. 718.103(2) if
866	the association permits the charter school to utilize a portion
867	of the association's property as defined in s. 718.103(3).
868	(16)  EXEMPTION FROM STATUTES.--
869	(a)  A charter school shall operate in accordance with its
870	charter and shall be exempt from all statutes in chapters 1000-
871	1013. However, a charter school shall be in compliance with the
872	following statutes in chapters 1000-1013:
873	1.  Those statutes specifically applying to charter
874	schools, including this section.
875	2.  Those statutes pertaining to the student assessment
876	program and school grading system.
877	3.  Those statutes pertaining to the provision of services
878	to students with disabilities.
879	4.  Those statutes pertaining to civil rights, including s.
880	1000.05, relating to discrimination.
881	5.  Those statutes pertaining to student health, safety,
882	and welfare.
883	6.  Those statutes pertaining to the constitutional class
884	size maximums pursuant to s. 1, Art. IX of the State
885	Constitution, including s. 1003.03.
886	(b)  Additionally, a charter school shall be in compliance
887	with the following statutes:
888	1.  Section 286.011, relating to public meetings and
889	records, public inspection, and criminal and civil penalties.
890	2.  Chapter 119, relating to public records.
891	(20)  SERVICES.--
892	(a)1.  A sponsor shall provide certain administrative and
893	educational services to charter schools. These services shall
894	include contract management services; full-time equivalent and
895	data reporting services; exceptional student education
896	administration services; services related to eligibility and
897	reporting duties required to ensure that school lunch services
898	under the federal lunch program, consistent with the needs of
899	the charter school, are provided by the school district at the
900	request of the charter school; test administration services,
901	including payment of the costs of state-required or district-
902	required student assessments; processing of teacher certificate
903	data services; and information services, including equal access
904	to student information systems that are used by public schools
905	in the district in which the charter school is located. Student
906	performance data for each student in a charter school,
907	including, but not limited to, FCAT scores, standardized test
908	scores, previous public school student report cards, and student
909	performance measures, shall be provided by the sponsor to a
910	charter school in the same manner provided to other public
911	schools in the district.
912	2.  A total administrative fee for the provision of such
913	services under subparagraph 1. shall be calculated based upon up
914	to 5 percent of the available funds defined in paragraph (17)(b)
915	for all students. However, a sponsor may only withhold up to a
916	5-percent administrative fee for enrollment for up to and
917	including 500 students. For charter schools with a population of
918	501 or more students, the difference between the total
919	administrative fee calculation and the amount of the
920	administrative fee withheld may only be used for capital outlay
921	purposes specified in s. 1013.62(2). Each charter school shall
922	receive 100 percent of the funds awarded to that school pursuant
923	to s. 1012.225. Sponsors shall not charge charter schools any
924	additional fees or surcharges for administrative and educational
925	services in addition to the maximum 5-percent administrative fee
926	withheld pursuant to this subparagraph paragraph.
927	3.  The department shall develop a process, which shall be
928	adopted by the State Board of Education in rule, to annually
929	assess the provision of services by the sponsor under this
930	paragraph. This process shall include a survey to be completed
931	by each charter school that allows the school to identify its
932	satisfaction with its sponsor's services and any areas of
933	noncompliance with this paragraph and provides an opportunity
934	for each sponsor to respond to the survey results. The
935	department shall annually report the outcomes of this assessment
936	to the State Board of Education.
937	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--
938	(a)  The Department of Education shall provide information
939	to the public, directly and through sponsors, both on how to
940	form and operate a charter school and on how to enroll in a
941	charter school schools once it is they are created. This
942	information shall include a standard application format, charter
943	format, evaluation instrument, and charter renewal format, which
944	shall include the information specified in subsection (7) and
945	shall be developed by consulting and negotiating with both
946	school districts and charter schools before implementation. The
947	charter and charter renewal These formats shall be used as
948	guidelines by charter school sponsors.
949	(b)1.  The Department of Education shall report student
950	assessment data pursuant to s. 1008.34(3)(c) which is reported
951	to schools that receive a school grade or student assessment
952	data pursuant to s. 1008.341(3) which is reported to alternative
953	schools that receive a school improvement rating to each charter
954	school that:
955	a.  Does not receive a school grade pursuant to s. 1008.34
956	or a school improvement rating pursuant to s. 1008.341; and
957	b.  Serves at least 10 students who are tested on the
958	statewide assessment test pursuant to s. 1008.22.
959	2.  The charter school shall report the information in
960	subparagraph 1. to each parent of a student at the charter
961	school, the parent of a child on a waiting list for the charter
962	school, the district in which the charter school is located, and
963	the governing board of the charter school. This paragraph does
964	not abrogate the provisions of s. 1002.22, relating to student
965	records, or the requirements of 20 U.S.C. s. 1232g, the Family
966	Educational Rights and Privacy Act.
967	3.a.  Pursuant to this paragraph, the Department of
968	Education shall compare the charter school student performance
969	data for each charter school in subparagraph 1. with the student
970	performance data in traditional public schools in the district
971	in which the charter school is located and other charter schools
972	in the state. For alternative charter schools, the department
973	shall compare the student performance data described in this
974	paragraph with all alternative schools in the state. The
975	comparative data shall be provided by the following grade
976	groupings:
977	(I)  Grades 3 through 5.
978	(II)  Grades 6 through 8.
979	(III)  Grades 9 through 11.
980	b.  Each charter school shall provide the information
981	specified in this paragraph on its Internet website and also
982	provide notice to the public at large in a manner provided by
983	the rules of the State Board of Education. The State Board of
984	Education shall adopt rules to administer the notice
985	requirements of this subparagraph. The website shall include,
986	through links or actual content, other information related to
987	school performance.
988	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
989	of the annual report required by paragraph (9)(k) (9)(l), the
990	Department of Education shall provide to the State Board of
991	Education, the Commissioner of Education, the Governor, the
992	President of the Senate, and the Speaker of the House of
993	Representatives an analysis and comparison of the overall
994	performance of charter school students, to include all students
995	whose scores are counted as part of the statewide assessment
996	program, versus comparable public school students in the
997	district as determined by the statewide assessment program
998	currently administered in the school district, and other
999	assessments administered pursuant to s. 1008.22(3).
1000	(24)  RESTRICTION ON EMPLOYMENT OF RELATIVES.--
1001	(a)  This subsection applies to charter school personnel in
1002	a charter school operated by a private entity. Charter school
1003	personnel in schools operated by a municipality or other public
1004	entity are subject to s. 112.3135. As used in this subsection,
1005	the term:
1006	1.  "Charter school personnel" means a charter school
1007	owner, president, chair of the governing board of directors,
1008	superintendent, governing board member, principal, assistant
1009	principal, or any other person employed by the charter school
1010	who has equivalent decisionmaking authority and in whom is
1011	vested the authority, or to whom the authority has been
1012	delegated, to appoint, employ, promote, or advance individuals
1013	or to recommend individuals for appointment, employment,
1014	promotion, or advancement in connection with employment in a
1015	charter school, including the authority as a member of a
1016	governing board of a charter school to vote on the appointment,
1017	employment, promotion, or advancement of individuals.
1018	2.  "Relative" means father, mother, son, daughter,
1019	brother, sister, uncle, aunt, first cousin, nephew, niece,
1020	husband, wife, father-in-law, mother-in-law, son-in-law,
1021	daughter-in-law, brother-in-law, sister-in-law, stepfather,
1022	stepmother, stepson, stepdaughter, stepbrother, stepsister, half
1023	brother, or half sister.
1024	(b)1.  Charter school personnel may not knowingly recommend
1025	or engage in the appointment, employment, promotion, or
1026	advancement of an individual or employee into a position at a
1027	work location if that action will create a situation in which
1028	one employee will be responsible for the direct supervision of,
1029	or exercise jurisdiction or control over, another employee who
1030	is a relative.
1031	2.  The Commissioner of Education or the charter school's
1032	sponsor may grant a waiver of subparagraph 1. if such
1033	prohibition would cause an undue hardship to students or would
1034	seriously disrupt a charter school's operations.
1035	3.  This paragraph does not prohibit the employment of
1036	relatives at the same work location as long as subparagraph 1.
1037	is not violated.
1038	4.  The approval of budgets does not constitute
1039	"jurisdiction or control" for the purposes of this paragraph.
1040	(25)  STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.--
1041	(a)  A member of a governing board of a charter school,
1042	including a charter school operated by a private entity, is
1043	subject to ss. 112.313(2), (3), (7), and (12) and 112.3143(3).
1044	(b)  A member of a governing board of a charter school
1045	operated by a municipality or other public entity is subject to
1046	s. 112.3144, which relates to the disclosure of financial
1047	interests.
1048	Section 8.  Subsections (4) and (5), paragraphs (d) and (f)
1049	of subsection (6), paragraph (c) of subsection (10), paragraph
1050	(f) of subsection (11), and subsection (13) of section 1002.34,
1051	Florida Statutes, are amended to read:
1052	1002.34  Charter technical career centers.--
1053	(4)  CHARTER.--A sponsor may designate centers as provided
1054	in this section. An application to establish a center may be
1055	submitted by a sponsor or another organization that is
1056	determined, by rule of the State Board of Education, to be
1057	appropriate. However, an independent school is not eligible for
1058	status as a center. The charter must be signed by the governing
1059	body of the center and the sponsor, and must be approved by the
1060	district school board and community college board of trustees in
1061	whose geographic region the facility is located. If a charter
1062	technical career center is established by the conversion to
1063	charter status of a public technical center formerly governed by
1064	a district school board, the charter status of that center takes
1065	precedence in any question of governance. The governance of the
1066	center or of any program within the center remains with its
1067	board of directors unless the board agrees to a change in
1068	governance or its charter is revoked as provided in subsection
1069	(15). Such a conversion charter technical career center is not
1070	affected by a change in the governance of public technical
1071	centers or of programs within other centers that are or have
1072	been governed by district school boards. A charter technical
1073	career center, or any program within such a center, that was
1074	governed by a district school board and transferred to a
1075	community college prior to the effective date of this act is not
1076	affected by this provision. An applicant who wishes to establish
1077	a center must submit to the district school board or community
1078	college board of trustees, or a consortium of one or more of
1079	each, an application on a form developed by the Department of
1080	Education which that includes:
1081	(a)  The name of the proposed center.
1082	(b)  The proposed structure of the center, including a list
1083	of proposed members of the board of directors or a description
1084	of the qualifications for and method of their appointment or
1085	election.
1086	(c)  The workforce development goals of the center, the
1087	curriculum to be offered, and the outcomes and the methods of
1088	assessing the extent to which the outcomes are met.
1089	(d)  The admissions policy and criteria for evaluating the
1090	admission of students.
1091	(e)  A description of the staff responsibilities and the
1092	proposed qualifications of the teaching staff.
1093	(f)  A description of the procedures to be implemented to
1094	ensure significant involvement of representatives of business
1095	and industry in the operation of the center.
1096	(g)  A method for determining whether a student has
1097	satisfied the requirements for graduation specified in s.
1098	1003.43 and for completion of a postsecondary certificate or
1099	degree.
1100	(h)  A method for granting secondary and postsecondary
1101	diplomas, certificates, and degrees.
1102	(i)  A description of and address for the physical facility
1103	in which the center will be located.
1104	(j)  A method for of resolving conflicts between the
1105	governing body of the center and the sponsor and between
1106	consortium members, if applicable.
1107	(k)  A method for reporting student data as required by law
1108	and rule.
1109	(l)  A statement that the applicant has participated in the
1110	training provided by the Department of Education.
1111	(m)  The identity of all relatives employed by the charter
1112	technical career center who are related to the center owner,
1113	president, chair of the governing board of directors,
1114	superintendent, governing board member, principal, assistant
1115	principal, or any other person employed by the center who has
1116	equivalent decisionmaking authority. As used in this paragraph,
1117	the term "relative" means father, mother, son, daughter,
1118	brother, sister, uncle, aunt, first cousin, nephew, niece,
1119	husband, wife, father-in-law, mother-in-law, son-in-law,
1120	daughter-in-law, brother-in-law, sister-in-law, stepfather,
1121	stepmother, stepson, stepdaughter, stepbrother, stepsister, half
1122	brother, or half sister.
1123	(n)(l)  Other information required by the district school
1124	board or community college board of trustees.
1125
1126	Students at a center must meet the same testing and academic
1127	performance standards as those established by law and rule for
1128	students at public schools and public technical centers. The
1129	students must also meet any additional assessment indicators
1130	that are included within the charter approved by the district
1131	school board or community college board of trustees.
1132	(5)  APPLICATION.--An application to establish a center
1133	must be submitted by February 1 of the year preceding the school
1134	year in which the center will begin operation. The sponsor must
1135	review the application using an evaluation instrument developed
1136	by the Department of Education and make a final decision on
1137	whether to approve the application and grant the charter by
1138	March 1, and may condition the granting of a charter on the
1139	center's taking certain actions or maintaining certain
1140	conditions. Such actions and conditions must be provided to the
1141	applicant in writing. The district school board or community
1142	college board of trustees is not required to issue a charter to
1143	any person.
1144	(6)  SPONSOR.--A district school board or community college
1145	board of trustees or a consortium of one or more of each may
1146	sponsor a center in the county in which the board has
1147	jurisdiction.
1148	(d)1.  The Department of Education shall offer or arrange
1149	for training and technical assistance to applicants in
1150	developing business plans and estimating costs and income. This
1151	assistance shall address estimating startup costs, projecting
1152	enrollment, and identifying the types and amounts of state and
1153	federal financial assistance the center may be eligible to
1154	receive. The training shall include instruction in accurate
1155	financial planning and good business practices.
1156	2.  An applicant must participate in the training provided
1157	by the Department of Education before filing an application. The
1158	Department of Education may provide technical assistance to an
1159	applicant upon written request.
1160	(f)  The sponsor shall monitor and review the center's
1161	progress toward charter goals and shall monitor the center's
1162	revenues and expenditures. The sponsor shall perform the duties
1163	provided in s. 1002.345.
1164	(10)  EXEMPTION FROM STATUTES.--
1165	(c)  A center must comply with the antidiscrimination
1166	provisions in of s. 1000.05 and the provisions in s. 1002.33(24)
1167	which relate to the employment of relatives.
1168	(11)  FUNDING.--
1169	(f)  A center shall provide for an annual financial audit
1170	in accordance with s. 218.39. A center shall provide a monthly
1171	financial statement to the sponsor. The content and form of the
1172	monthly financial statement shall be prescribed by the
1173	Department of Education.
1174	(13)  BOARD OF DIRECTORS AUTHORITY.--The board of directors
1175	of a center may decide matters relating to the operation of the
1176	school, including budgeting, curriculum, and operating
1177	procedures, subject to the center's charter. The board of
1178	directors is responsible for performing the duties provided in
1179	s. 1002.345, including monitoring the corrective action plan.
1180	The board of directors must comply with s. 1002.33(25).
1181	Section 9.  Section 1002.345, Florida Statutes, is created
1182	to read:
1183	1002.345  Determination of deteriorating financial
1184	conditions and financial emergencies for charter schools and
1185	charter technical career centers.--This section applies to
1186	charter schools operating pursuant to s. 1002.33 and to charter
1187	technical career centers operating pursuant to s. 1002.34.
1188	(1)  EXPEDITED REVIEW; REQUIREMENTS.--
1189	(a)  A charter school or a charter technical career center
1190	is subject to an expedited review by the sponsor if one of the
1191	following occurs:
1192	1.  Failure to provide for an audit required by s. 218.39.
1193	2.  Failure to comply with reporting requirements pursuant
1194	to s. 1002.33(9) or s. 1002.34(11)(f) or (14).
1195	3.  A deteriorating financial condition identified through
1196	an annual audit pursuant to s. 218.39(5) or a monthly financial
1197	statement pursuant to s. 1002.33(9)(g) or s. 1002.34(11)(f).
1198	"Deteriorating financial condition" means a circumstance that
1199	significantly impairs the ability of a charter school or a
1200	charter technical career center to generate enough revenues to
1201	meet its expenditures without causing the occurrence of a
1202	condition described in s. 218.503(1).
1203	4.  Notification pursuant to s. 218.503(2) that one or more
1204	of the conditions specified in s. 218.503(1) have occurred or
1205	will occur if action is not taken to assist the charter school
1206	or charter technical career center.
1207	(b)  A sponsor shall notify the governing board within 7
1208	business days after one or more of the conditions specified in
1209	paragraph (a) occur.
1210	(c)  The governing board and the sponsor shall develop a
1211	corrective action plan and file the plan with the Commissioner
1212	of Education within 30 business days after notification is
1213	received as provided in paragraph (b). If the governing board
1214	and the sponsor are unable to agree on a corrective action plan,
1215	the Commissioner of Education shall determine the components of
1216	the plan. The governing board shall implement such plan.
1217	(d)  The governing board shall include the corrective
1218	action plan and the status of its implementation in the annual
1219	progress report to the sponsor which is required pursuant to s.
1220	1002.33(9)(k) or s. 1002.34(14).
1221	(e)  If the governing board fails to implement the
1222	corrective action plan within 1 year after one or more of the
1223	conditions specified in paragraph (a) occur, the State Board of
1224	Education shall prescribe any steps necessary for the charter
1225	school or the charter technical career center to comply with
1226	state requirements.
1227	(f)  The chair of the governing board shall annually appear
1228	before the State Board of Education and report on the
1229	implementation of the State Board of Education's requirements
1230	under paragraph (e).
1231	(2)  FINANCIAL EMERGENCY; REQUIREMENTS.--
1232	(a)1.  If a financial audit conducted by a certified public
1233	accountant in accordance with s. 218.39 reveals that one or more
1234	of the conditions in s. 218.503(1) have occurred or will occur
1235	if action is not taken to assist the charter school or charter
1236	technical career center, the auditor shall notify the governing
1237	board of the charter school or charter technical career center,
1238	as appropriate, the sponsor, and the Commissioner of Education
1239	within 7 business days after the finding is made.
1240	2.  If the charter school or charter technical career
1241	center is found to be in a state of financial emergency pursuant
1242	to s. 218.503(4), the charter school or charter technical career
1243	center shall file a financial recovery plan pursuant to s.
1244	218.503 with the sponsor and the Commissioner of Education
1245	within 30 days after being notified by the Commissioner of
1246	Education that a financial recovery plan is needed.
1247	(b)  The governing board shall include the financial
1248	recovery plan and the status of its implementation in the annual
1249	progress report to the sponsor which is required under s.
1250	1002.33(9)(k) or s. 1002.34(14).
1251	(3)  REPORT.--The Commissioner of Education shall annually
1252	report to the State Board of Education each charter school and
1253	charter technical career center that is subject to a financial
1254	recovery plan or a corrective action plan under this section.
1255	(4)  RULES.--The State Board of Education shall adopt rules
1256	for developing financial recovery and corrective action plans,
1257	defining a deteriorating financial condition pursuant to
1258	subparagraph (1)(a)3., and establishing procedures for
1259	determining a deteriorating financial condition pursuant to
1260	subparagraph (1)(a)3. and s. 218.39(5). In adopting the rules,
1261	the State Board of Education may obtain technical assistance
1262	from the Auditor General.
1263	(5)  TECHNICAL ASSISTANCE.--The Department of Education
1264	shall provide technical assistance to charter schools, charter
1265	technical career centers, governing boards, and sponsors in
1266	developing financial recovery and corrective action plans.
1267	(6)  FAILURE TO CORRECT DEFICIENCIES.--The sponsor may
1268	decide not to renew or may terminate a charter if the charter
1269	school or charter technical career center fails to correct the
1270	deficiencies noted in the corrective action plan within 1 year
1271	after being notified of the deficiencies or exhibits one or more
1272	financial emergency conditions specified in s. 218.503 for 2
1273	consecutive years. This subsection does not affect a sponsor's
1274	authority to terminate or not renew a charter pursuant to s.
1275	1002.33(8).
1276	Section 10. Subsection (2) of section 1013.62, Florida
1277	Statutes, is amended to read:
1278	1013.62  Charter schools capital outlay funding.--
1279	(2)  A charter school's governing body may use charter
1280	school capital outlay funds for the following purposes:
1281	(a)  Purchase of real property.
1282	(b)  Construction of school facilities.
1283	(c)  Purchase, lease-purchase, or lease of permanent or
1284	relocatable school facilities.
1285	(d)  Purchase of vehicles to transport students to and from
1286	the charter school.
1287	(e)  Renovation, repair, and maintenance of school
1288	facilities that the charter school owns or is purchasing through
1289	a lease-purchase or long-term lease of 5 years or longer.
1290	(f)  Purchase, lease-purchase, or lease of new and
1291	replacement equipment.
1292	(g)  Payment of the cost of premiums for property and
1293	casualty insurance necessary to insure the school.
1294
1295	Conversion charter schools may use capital outlay funds received
1296	through the reduction in the administrative fee provided in s.
1297	1002.33(20) for renovation, repair, and maintenance of school
1298	facilities that are owned by the sponsor.
1299	Section 11.  This act shall take effect July 1, 2009.

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