Florida Senate - 2014                                    SB 1284
       
       
        
       By Senator Ring
       
       
       
       
       
       29-01357-14                                           20141284__
    1                        A bill to be entitled                      
    2         An act relating to charter schools; creating s.
    3         1002.3301, F.S.; creating the Florida Charter School
    4         Association; specifying the purpose of the
    5         association; providing membership on the board of
    6         directors; establishing the powers and duties of the
    7         association; requiring the association to submit a
    8         proposed plan of operation to the Department of
    9         Education; providing for the annual assessment of
   10         member charter schools; specifying what must be
   11         included in the plan of operation; requiring the
   12         department to adopt the plan of operation if the
   13         association fails to do so; specifying duties of the
   14         board of directors to aid in the prevention of charter
   15         school failures; providing that the association is
   16         subject to examination by the department; providing
   17         immunity from liability or a cause of action against
   18         specified persons; providing an effective date.
   19          
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Section 1002.3301, Florida Statutes, is created
   23  to read:
   24         1002.3301 Nonprofit organization; charter schools.—
   25         (1) CREATION AND PURPOSE.—There is created a not-for-profit
   26  corporation to be known as the “Florida Charter School
   27  Association (FCSA).” Any charter school in this state may become
   28  a member of the FCSA; however, membership in the FCSA is not
   29  mandatory for any charter school. The FCSA shall perform its
   30  functions pursuant to the plan of operation established and
   31  approved under subsection (4) and shall exercise its powers
   32  through a board of directors established under subsection (2).
   33  The FCSA has all powers granted or authorized to not-for-profit
   34  corporations under chapter 617, in addition to other powers
   35  granted in this section. The FCSA is established to:
   36         (a) Protect the interests of students, parents, board
   37  members, taxpayers, educators, and other claimants and the
   38  general public.
   39         (b) Provide a mechanism for administering charter school
   40  operations and for administering payment of claims due to a
   41  charter school failure, and mitigate the impact of failing
   42  charters.
   43         (c) Assist in the detection and prevention of a potentially
   44  dangerous condition in a charter school and promptly apply
   45  appropriate corrective measures.
   46         (d) Implement improved methods for rehabilitating charter
   47  schools, including methods involving the cooperation and
   48  management expertise of the charter school industry.
   49         (e) Establish a system to equitably apportion an
   50  unavoidable loss as a result of a charter school failure.
   51         (f) Administer the reassignment of students and teachers in
   52  the event of a charter school failure.
   53         (g) Maximize recovery of assets for the benefit of the
   54  students, parents, board members, taxpayers, educators,
   55  creditors, and other claimants and the general public.
   56         (2) BOARD OF DIRECTORS.—The board of directors shall be
   57  composed of at least five, but no more than nine, persons
   58  serving terms as established in the FCSA’s plan of operation.
   59  The Commissioner of Education shall appoint persons recommended
   60  by member charter schools to the board. If the commissioner
   61  determines that a recommended person is not qualified to serve
   62  on the board of directors, the commissioner shall request
   63  another recommendation from member charter schools. A vacancy on
   64  the board shall be filled in the same manner as the original
   65  appointment and shall be for the remainder of the unexpired term
   66  of that seat.
   67         (a) In appointing members to the board, the commissioner
   68  shall consider whether all areas of charter school operations
   69  are equitably represented.
   70         (b) Members of the board may be reimbursed from the assets
   71  of the FCSA for expenses incurred in connection with their
   72  official duties as members of the board of directors.
   73         (c) A board member representing a failed charter school
   74  shall be terminated as a board member, effective as of the date
   75  of the entry of the order of revocation of the charter.
   76         (3) POWERS AND DUTIES.—
   77         (a) The FCSA shall be:
   78         1. Obligated for payment of claims resulting from a failing
   79  charter existing before the adjudication of the charter failure
   80  and arising within 30 days after the determination of such
   81  failure. The FCSA may not be obligated to any claimant in an
   82  amount in excess of the obligation of a member charter school
   83  due to the failed charter from which the claim arises; and
   84         2. Deemed the insurer to the extent of its obligation on
   85  the covered claims and, to such extent, shall have all rights,
   86  duties, defenses, and obligations of the failed member charter
   87  school as if the charter school had not failed. The FCSA may not
   88  be held liable for any penalties or interest accrued by the
   89  failed member charter school.
   90         (b) The FCSA may:
   91         1. Employ or retain such persons as are necessary to handle
   92  claims and perform other duties of the association;
   93         2. Borrow funds necessary to carry out the provisions of
   94  this section in accordance with the plan of operation;
   95         3. Sue or be sued if service of process is made upon the
   96  person registered with the department as an agent for the
   97  receipt of service of process; and
   98         4. Negotiate and become a party to such contracts as are
   99  necessary to carry out the provisions of this section.
  100         (c)1. To the extent necessary to secure the funds for the
  101  payment of covered claims and the administration of such claims,
  102  the FCSA, upon certification of the board of directors, shall
  103  levy an annual assessment on member charter schools. The plan of
  104  operation shall specify the method of assessment; however, an
  105  assessment levied against a member charter school in any given
  106  year may not exceed 2 percent of the member charter school’s
  107  budget.
  108         2. If sufficient funds from such assessments are not
  109  available to make all payments or reimbursements owed to
  110  claimants, the funds available shall be prorated, and the unpaid
  111  portion shall be paid as soon thereafter as the funds become
  112  available.
  113         3. A member charter school may not use state funds in order
  114  to satisfy payment of any assessment.
  115         (4) PLAN OF OPERATION.—The FCSA shall submit to the
  116  Department of Education a proposed plan of operation and any
  117  amendments necessary to ensure the fair and equitable
  118  administration of the FCSA. The plan of operation and any
  119  amendments thereto shall become effective upon written approval
  120  by the department.
  121         (a) The plan of operation shall:
  122         1. Establish procedures for the performance of the powers
  123  and duties of the FCSA;
  124         2. Specify the method of the annual assessment of member
  125  charter schools;
  126         3. Establish procedures for handling assets of the FCSA;
  127         4. Establish methods for reimbursement of members of the
  128  board of directors;
  129         5. Establish procedures by which claims may be filed with
  130  the FCSA and acceptable forms of documentation for proof of
  131  covered claims;
  132         6. Designate regular times and locations for meetings of
  133  the board of directors;
  134         7. Establish procedures for the retention of records of all
  135  financial transactions of the FCSA, its agents, and the board of
  136  directors;
  137         8. Establish procedures for a member charter school to
  138  appeal any final action or decision of the FCSA to the
  139  department within 30 days after the action or decision;
  140         9. Establish procedures for submission of any
  141  recommendations by the board of directors to the department; and
  142         10. Contain any other provisions necessary for the FCSA to
  143  carry out its powers and duties as prescribed by this section.
  144         (b) If the association fails to submit a suitable proposed
  145  plan of operation by January 1, 2015, or if at any time
  146  thereafter the FCSA fails to submit suitable amendments to the
  147  plan, the department shall adopt rules as necessary to
  148  administer this subsection. Such rules shall continue in force
  149  until modified by the department or superseded by a proposed
  150  plan submitted by the FCSA and approved by the department.
  151         (c) The plan of operation may provide that any or all
  152  powers and duties of the FCSA are delegated to a corporation, an
  153  association, or any other organization that performs or will
  154  perform functions similar to those of the FCSA, or its
  155  equivalent, in two or more states. Such a corporation,
  156  association, or organization shall be reimbursed for any
  157  payments made on behalf of the FCSA and shall be paid for its
  158  performance of any function of the FCSA. A delegation under this
  159  paragraph shall take effect only with the approval of both the
  160  board of directors and the department and may be made only to a
  161  corporation, an association, or any other organization that
  162  extends protection not substantially less favorable and
  163  effective than that provided by this section.
  164         (5) PREVENTION OF CHARTER FAILURE.—To aid in the detection
  165  and prevention of charter school failures:
  166         (a) The board of directors shall, upon a majority vote,
  167  notify the department of any information indicating that a
  168  member charter school may be insolvent or in a financial
  169  condition hazardous to the public.
  170         (b) The board of directors may, upon a majority vote,
  171  request that the department order an examination of a member
  172  charter school that the board in good faith believes may be in a
  173  financial condition hazardous to the public. Within 30 days
  174  after receipt of such request, the department shall commence
  175  such an examination. The department shall keep on file any
  176  request for an examination. The cost of such examination shall
  177  be paid by the FCSA. The department shall notify the board when
  178  the examination is completed. A report containing the results of
  179  such an examination may not be released to the board before any
  180  general release to the public.
  181         (c) The board of directors may, upon a majority vote, make
  182  reports and recommendations to the department on any matter
  183  related to the solvency, liquidation, rehabilitation, or
  184  conservation of any member charter school.
  185         (d) The board of directors may, upon a majority vote, make
  186  recommendations to the department for the detection and
  187  prevention of charter school failures.
  188         (6) EXAMINATION.—The FCSA shall be subject to examination
  189  and regulation by the department. The board of directors shall
  190  submit, by March 30 of each year, a financial report for the
  191  preceding calendar year in a form approved by the department.
  192         (7) IMMUNITY.—There is no liability on the part of, and no
  193  cause of action of any nature shall arise against, any member
  194  charter school, the FCSA or its agents or employees, the board
  195  of directors, the commissioner, or the department or their
  196  representatives for any action consistent with the powers and
  197  duties granted under this section. Such immunity shall extend to
  198  the participation in any organization of one or more other state
  199  associations of similar purposes and to any such organization
  200  and its agents or employees.
  201         Section 2. This act shall take effect July 1, 2014.