Florida Senate - 2015 SB 1038 By Senator Montford 3-00813-15 20151038__ 1 A bill to be entitled 2 An act relating to charter schools; creating s. 3 1002.322, F.S.; providing a short title and purpose of 4 the act; providing legislative findings; creating s. 5 1002.323, F.S.; defining terms; creating s. 1002.324, 6 F.S.; specifying the duties and responsibilities of 7 the Department of Education with respect to the 8 issuance of statements of need; requiring the State 9 Board of Education to adopt certain rules; requiring 10 the state board to allow stakeholder participation in 11 rule development; creating s. 1002.325, F.S.; 12 requiring an applicant to file a letter of intent with 13 the department before applying for a statement of 14 need; prescribing required content for a letter of 15 intent; requiring the department to publish notice of 16 filing of letters of intent in the Florida 17 Administrative Register; specifying the content of a 18 statement of need application; requiring the state 19 board to adopt a certain rule; establishing procedures 20 governing the submission and review of applications; 21 authorizing the department to hold a public hearing 22 regarding a proposed project under certain 23 circumstances; authorizing an applicant to submit a 24 response to a written statement of opposition; 25 specifying evaluation criteria for applications; 26 authorizing the department to assess fees on 27 applications; creating s. 1002.326, F.S.; establishing 28 procedures for the department to issue or deny 29 statements of need; requiring publication of the 30 department’s report and notice of intent; authorizing 31 specified parties to file a request for an 32 administrative hearing; requiring the department to 33 issue a final order within a certain timeframe of an 34 administrative law judge’s recommended order; 35 authorizing a party to an administrative hearing to 36 seek judicial review; authorizing the reviewing court 37 to award attorney fees and court costs under certain 38 circumstances; creating s. 1002.327, F.S.; specifying 39 applicability of the statement of need review process; 40 authorizing expedited review and exemption from review 41 under certain circumstances; creating s. 1002.328, 42 F.S.; authorizing the department to conditionally 43 issue a statement of need; authorizing a statement 44 holder to apply to the department for a modification 45 of conditions; requiring the state board to specify 46 factors constituting good cause for modification by 47 rule; authorizing the department to assess a fine 48 against a noncompliant statement holder; requiring 49 fine proceeds to be deposited into the State School 50 Trust Fund; specifying the length of validity for a 51 statement of need; requiring the department to monitor 52 the progress of a statement holder; requiring the 53 department to extend the length of validity for a 54 statement of need under certain circumstances; 55 creating s. 1002.3281, F.S.; prohibiting a person from 56 undertaking a project subject to review without 57 holding a statement of need; providing a penalty; 58 creating s. 1002.3282, F.S.; prohibiting the transfer 59 of a statement of need; providing a penalty; creating 60 s. 1002.329, F.S.; authorizing the department to seek 61 injunctive relief; amending s. 1002.33, F.S.; 62 conforming provisions to changes made by the act; 63 providing an effective date. 64 65 Be It Enacted by the Legislature of the State of Florida: 66 67 Section 1. Section 1002.322, Florida Statutes, is created 68 to read: 69 1002.322 Short title and purpose.— 70 (1) Sections 1002.322-1002.329 may be cited as the “Charter 71 School Excellence Act.” 72 (2) The Legislature finds that: 73 (a) Section 1, Art. IX of the State Constitution mandates a 74 “uniform, efficient, safe, secure, and high quality system of 75 free public schools” in this state. Thus, a uniform and coherent 76 system of public education which is both equitable and fiscally 77 efficient is imperative. All charter schools in this state are 78 public schools and are, therefore, subject to the constitutional 79 mandate. 80 (b) Since their inception in 1996, the number of charter 81 schools in this state grew to more than 615 in the 2013-2014 82 school year. Charter school enrollment in this state grew to 83 more than 229,000 students in the 2013-2014 school year. A 84 charter school can be independently opened and operated by 85 individuals, a municipality, or a legal entity organized under 86 the laws of this state. Volunteer governing boards control each 87 individual charter school, rather than the elected 88 representatives that compose each district school board. 89 Duplicative programs in charter schools, which largely mirror 90 programs available in traditional public schools, serve as a 91 burden on the already financially strained public school system. 92 The state’s charter schools should complement, and not 93 duplicate, the role of the state’s traditional public schools. 94 (c) The application process for new charter schools is 95 biased toward encouraging unmitigated growth of the charter 96 school industry, rather than focusing on the specific needs of 97 students or the safeguarding of taxpayer dollars. 98 (d) The lack of transparency and local control over charter 99 schools has resulted in the inefficient use of taxpayer dollars. 100 School districts are limited in their ability to intervene in 101 the management or instruction of an individual charter school, 102 which has exacerbated the number of charter school failures. 103 Delaying intervention into a failing charter school’s operation 104 has repeatedly resulted in the failure of the charter school and 105 the resulting displacement of students. In many instances, 106 school districts have been unable to recoup taxpayer dollars 107 that have been invested in a failed charter school. 108 Additionally, current standards of performance for charter 109 schools, compared to the standards applied to traditional public 110 schools, are inadequate given a charter school’s ability to 111 target and select particular students for enrollment. 112 (e) For-profit companies that provide charter schools with 113 various administrative services can consume a significant 114 portion of the school’s budget, which ultimately results in less 115 money going toward student education. Such administrative 116 services are duplicative of services available through the 117 school districts and are an inefficient use of taxpayer dollars. 118 (f) Many charter schools have failed to assume the role 119 that was originally envisioned for them in the original 120 authorizing legislation. Instead, many charter schools are 121 offering the same instructional services offered in traditional 122 public schools located in the same neighborhood. Unlike many 123 other states, Florida has not established a maximum cap on the 124 number of charter schools that are authorized to operate. 125 (3) The purpose of this act is to develop and implement a 126 program that requires statements of need for charter schools to 127 ensure that such schools provide innovative educational services 128 not provided by traditional public schools in the community; do 129 not duplicate existing services provided by school districts and 130 traditional public schools; and are responsible stewards of 131 taxpayer money. 132 Section 2. Section 1002.323, Florida Statutes, is created 133 to read: 134 1002.323 Definitions.—As used in ss. 1002.322-1002.329, the 135 term: 136 (1) “Capital expenditure” means an expenditure, including 137 an expenditure for a construction project undertaken by a 138 charter school, which, under generally accepted accounting 139 principles, is not properly chargeable as an expense of 140 operation and maintenance, which is made to change the student 141 enrollment capacity of the charter school, or substantially 142 change the educational services or grade levels of the charter 143 school, and which includes the cost of the studies, surveys, 144 designs, plans, working drawings, specifications, initial 145 financing costs, and other activities essential to the 146 acquisition, improvement, expansion, or replacement of the plant 147 and equipment. 148 (2) “Charter school” means a school that meets the 149 requirements of s. 1002.33 and has been issued a statement of 150 need. 151 (3) “Commenced construction” means initiation of and 152 continuous activities beyond site preparation associated with 153 erecting or modifying a charter school, including procurement of 154 a building permit, securing an executed owner/contractor 155 agreement or an irrevocable or binding forced account, and the 156 actual undertaking of foundation forming with steel installation 157 and concrete placing. 158 (4) “Department” means the Department of Education. 159 (5) “Exemption” means a school that would otherwise require 160 a statement of need but qualifies for an exemption from that 161 requirement. 162 (6) “Expedited review” means the process by which certain 163 types of applications are not subject to the review and letter 164 of intent requirements in s. 1002.325. 165 (7) “State board” means the State Board of Education. 166 (8) “Statement of need” means a written statement issued by 167 the department evidencing the need for a new, converted, 168 expanded, or otherwise significantly modified charter school in 169 a specific school district. 170 Section 3. Section 1002.324, Florida Statutes, is created 171 to read: 172 1002.324 Duties and responsibilities of department; rules.— 173 (1) The department is designated as the sole agency that 174 may issue, revoke, or deny issuance of statements of need and 175 that may issue, revoke, or deny exemptions from statement of 176 need review in accordance with applicable law and rules. 177 (2) Before determining that there is a need for additional 178 charter schools in a school district, the department shall 179 assess whether a specific need can be satisfied through existing 180 traditional public schools and charter schools. 181 (3) The state board shall establish by rule: 182 (a) Uniform need methodologies for charter schools. In 183 developing such methodologies, the state board shall, at a 184 minimum, consider full-time equivalent student population 185 trends, student demographics, the number of existing charter 186 schools already operational in a school district, the need for 187 additional programs and educational services for students which 188 may be met by a charter school, and the need for innovative 189 educational services. 190 (b) A full-time equivalent student methodology with a goal 191 of maintaining an average enrollment rate of 95 percent. 192 (4) In developing rules, the state board shall involve all 193 stakeholders to the greatest extent practicable, including 194 school district personnel, charter school operators, and 195 statewide organizations that represent public school educators 196 and charter schools. 197 Section 4. Section 1002.325, Florida Statutes, is created 198 to read: 199 1002.325 Application process and review for statements of 200 need.— 201 (1) LETTERS OF INTENT.— 202 (a) At least 30 days before filing an application for a 203 statement of need, a letter of intent shall be filed by the 204 prospective applicant with the department stating its intent to 205 develop a charter school, subject to review by the department. 206 The letter of intent shall also be filed with the district 207 school board of the school district in which the proposed 208 charter school would be located. 209 (b) Letters of intent must describe the proposed charter 210 school; specify the projected number of full-time equivalent 211 students to be enrolled; identify the educational services to be 212 provided and the specific location of the charter school; and 213 identify the applicant. 214 (c) Within 21 days after receipt of a letter of intent, the 215 department shall publish a notice of the filing of a letter of 216 intent in the Florida Administrative Register. Notices published 217 under this paragraph must specify due dates applicable to the 218 timetable or cycle for filing applications and for requesting an 219 administrative hearing. 220 (2) APPLICATION.—An application for a statement of need 221 must include: 222 (a) A detailed description of the proposed charter school 223 project and a statement of purpose and need in relation to the 224 criteria used by the department in reviewing applications. 225 (b) A statement of the financial resources needed by and 226 available to the applicant to complete the proposed project. The 227 statement must include: 228 1. A complete listing of all capital projects, including 229 facility acquisitions applied for, pending, approved, or 230 underway in this state or any state at the time of application, 231 regardless of whether the state has a statement of need program. 232 This listing must include the applicant’s actual or proposed 233 financial commitment to those projects and an assessment of 234 their impact on the applicant’s ability to provide adequate 235 funding for the proposed project. 236 2. A detailed listing of the needed capital expenditures, 237 including sources of funds. 238 3. A detailed financial projection, including a statement 239 of the projected revenue and expenses for the first 2 years of 240 operation after completion of the proposed project. This 241 statement must include a detailed evaluation of the impact of 242 the proposed project on the cost of other services provided by 243 the applicant. 244 (c) An audited financial statement of the applicant or the 245 applicant’s parent corporation if audited financial statements 246 of the applicant do not exist. In an application submitted by an 247 existing charter school, financial condition documentation must 248 include, but need not be limited to, a balance sheet and a 249 profit-and-loss statement for the 2 previous fiscal years’ 250 operation. 251 (3) REVIEW OF APPLICATIONS.— 252 (a) The state board shall adopt a rule that establishes a 253 timetable or cycle basis for the submission and review of 254 statement of need applications. The timetable or cycle for the 255 submission and review of statement of need applications must be 256 aligned and consistent with the charter school application and 257 review process established in s. 1002.33. Reviews of 258 applications shall be conducted on a timely basis and provide 259 for all completed applications to be considered at least 260 annually. 261 (b) Within 15 days after the applicable filing deadline for 262 the review cycle, the department shall determine if the 263 application is complete. If the application is incomplete, the 264 department shall request specific information from the applicant 265 necessary to complete the application; however, the department 266 may make only one such request. If the requested information is 267 not filed with the department within 21 days after the receipt 268 of the department’s request, the application shall be withdrawn 269 from consideration. 270 (c) Upon the request of any applicant or substantially 271 affected person, including other charter schools and the 272 district school board, within 14 days after notice that an 273 application has been filed, a public hearing may be held at the 274 department’s discretion if the department determines that a 275 proposed project involves issues of great public interest. In 276 such cases, the department shall attend the public hearing. The 277 public hearing shall allow applicants and other interested 278 parties reasonable time to present their positions and to 279 present rebuttal information. A recorded transcript of the 280 hearing shall be maintained. The public hearing shall be held at 281 the local school district level within 21 days after the 282 application is deemed complete. 283 (d) In those cases in which a written statement of 284 opposition has been timely filed regarding a statement of need 285 application, the applicant may submit a written response to the 286 department. Such response must be received by the department 287 within 10 days of the written statement due date. 288 (4) CRITERIA.—The evaluation criteria for applications 289 submitted to the department must include the following: 290 (a) The need for the proposed charter school and 291 educational services. 292 (b) The availability of the proposed educational services 293 in existing public schools and charter schools in the school 294 district. 295 (c) The ability of the applicant to provide quality 296 educational services and the applicant’s record of providing 297 quality educational services, if applicable. 298 (d) The availability of resources, including teachers and 299 administrators, management personnel, and funds for capital and 300 operating expenditures, for project accomplishment and 301 operation. 302 (e) The extent to which the proposed educational services 303 will enhance the educational options in the school district and 304 are not duplicative of existing educational services. 305 (f) The immediate and long-term financial feasibility and 306 fiscal efficiency of the charter school. 307 (g) The costs and methods of the proposed construction, 308 including whether the charter school will be in compliance with 309 the State Requirements for Educational Facilities approved by 310 the state board, and if not, whether the charter school will be 311 in compliance with any applicable state and local building 312 codes. 313 (h) The applicant’s record of providing educational 314 services to students who are from lower socioeconomic 315 backgrounds, who are low performing, or who have disabilities. 316 (5) FEES.—The department shall assess a fee on each 317 application for a statement of need as follows: 318 (a) A minimum base fee of $10,000 per application. 319 (b) In addition to the base fee, $50 for each full-time 320 equivalent student projected to enroll based on the enrollment 321 capacity of the applicant school. The total fee assessed 322 pursuant to paragraph (a) and this paragraph may not exceed 323 $50,000 in the aggregate. 324 (c) The department shall reduce the fee assessed pursuant 325 to paragraph (b) if the fees collected are projected to exceed 326 the cost of administering the statement of need program. 327 Section 5. Section 1002.326, Florida Statutes, is created 328 to read: 329 1002.326 Disposition of applications; administrative 330 hearing; judicial review.— 331 (1) The department’s review of and final action on 332 applications submitted must be in accordance with the criteria 333 specified in s. 1002.325(4) and any applicable state board 334 rules. 335 (2) Within 60 days after all of the applications in a 336 review cycle are determined to be complete, the department shall 337 issue a report and notice of intent specifying statements of 338 need that are issued or denied for the review cycle. The 339 department’s report shall specify its findings of fact and 340 determinations upon which its decision is based. If the 341 department intends to issue a statement of need, the report and 342 notice of intent must also include any conditions that the 343 department intends to attach to the statement of need. The state 344 board shall designate by rule a senior staff person, other than 345 the person who issues the final order and notice of intent, to 346 issue the report. 347 (3) The department shall publish the notice of intent in 348 the Florida Administrative Register within 14 days after 349 issuance. 350 (4) If no administrative hearing is requested pursuant to 351 subsection (5), the report and the notice of intent become the 352 final order of the department. The department shall provide a 353 copy of the final order to the appropriate district school 354 board. 355 (5) Within 21 days after publication of the report and 356 notice of intent, any person authorized under paragraph (b) to 357 participate in a hearing may file a request for an 358 administrative hearing. Failure to file a request for hearing 359 within 21 days of publication of notice of intent constitutes a 360 waiver of any right to a hearing and a waiver of the right to 361 contest the final decision of the department. A copy of the 362 request for hearing shall be served on the applicant. 363 (a) Hearings must be held in the county in which the 364 charter school would be located unless the administrative law 365 judge determines that changing the location will facilitate the 366 proceedings. The department shall assign proceedings requiring 367 hearings to the Division of Administrative Hearings of the 368 Department of Management Services within 10 days after the time 369 has expired for requesting a hearing. Except upon unanimous 370 consent of the parties, or upon the granting by the 371 administrative law judge of a motion of continuance, hearings 372 shall commence within 60 days after the administrative law judge 373 has been assigned, and a continuance may not be granted after 374 commencement of the proceedings absent a finding of 375 extraordinary circumstances by the administrative law judge. All 376 parties, except the department, shall bear their own expense of 377 preparing a transcript. In any application for a statement of 378 need which is referred to the Division of Administrative 379 Hearings for hearing, the administrative law judge shall 380 complete and submit to the parties a recommended order as 381 provided in ss. 120.569 and 120.57. The recommended order shall 382 be issued within 30 days after the receipt of the proposed 383 recommended orders or the deadline for submission of such 384 proposed recommended orders, whichever is earlier. The division 385 shall adopt procedures for administrative hearings which 386 maximize the use of stipulated facts and shall provide for the 387 admission of prepared testimony. 388 (b) The department shall issue its final order within 45 389 days after receipt of the recommended order. If the department 390 fails to take action within such time, or as otherwise agreed to 391 by the applicant and the department, the applicant may take 392 appropriate legal action to compel the department to act. When 393 making a determination on an application for a statement of 394 need, the department is specifically exempt from the time 395 limitations provided in s. 120.60(1). 396 (6)(a) A party to an administrative hearing for an 397 application for a statement of need has the right, within not 398 more than 30 days after the date of the final order, to seek 399 judicial review in the appropriate district court of appeal 400 pursuant to s. 120.68. The department shall be a party in any 401 such proceeding. 402 (b) In such judicial review, the court shall affirm the 403 final order of the department, unless the decision is arbitrary 404 or capricious or does not comply with the requirements for a 405 statement of need. 406 (c) The court may award reasonable attorney fees and costs 407 to the prevailing party if the court finds that there was a 408 complete absence of a justiciable issue of law or fact raised by 409 the losing party. 410 Section 6. Section 1002.327, Florida Statutes, is created 411 to read: 412 1002.327 Applicability; expedited review; exemption.— 413 (1) Beginning July 1, 2016, all charter schools described 414 in this subsection are subject to review and must file an 415 application for a statement of need with the department. The 416 department is exclusively responsible for determining whether a 417 charter school project is subject to review. Schools subject to 418 review include: 419 (a) A charter school that is newly constructed or 420 established, including a replacement charter school, if the 421 proposed project site is not located on the same site as, or 422 within 1 mile of, the existing charter school. 423 (b) An existing traditional public school proposed to be 424 converted to a charter school. 425 (c) An existing charter school that increases the number of 426 students enrolled or the enrollment capacity. 427 (d) An existing charter school that increases the number of 428 grades being provided educational services. 429 (2) All charter schools that meet the criteria specified in 430 this subsection are eligible for an expedited review of an 431 application for a statement of need: 432 (a) Transfer of a previously issued statement of need. A 433 subsequent purchaser of a charter school that is not yet 434 operational, but previously issued a statement of need, may 435 acquire the school’s statement of need without a transfer. 436 (b) Replacement of an existing charter school. 437 (c) Expansion of a charter school designated as a high 438 performing charter school in accordance with s. 1002.331. 439 (d) Replication of a high-performing charter school in a 440 high-performing charter school system. 441 (3) An applicant may submit a request for exemption from 442 subsection (1) to the department. Any exemption request must 443 specifically document why an exemption is appropriate in a 444 particular circumstance. 445 Section 7. Section 1002.328, Florida Statutes, is created 446 to read: 447 1002.328 Conditions and monitoring.— 448 (1)(a) The department may conditionally issue a statement 449 of need, predicated upon statements of intent expressed by an 450 applicant in the application for a statement of need. Any 451 conditions imposed on a statement of need based on such 452 statements of intent shall be stated on the face of the 453 statement of need approval. 454 (b) A statement holder may apply to the department for a 455 modification of conditions imposed under paragraph (a). If the 456 holder of a statement of need demonstrates good cause why the 457 statement should be modified, the department shall reissue the 458 statement of need with such modifications as may be appropriate. 459 The state board shall define by rule the factors constituting 460 good cause for modification. 461 (c) If the holder of a statement of need fails to comply 462 with a condition upon which the issuance of the statement or 463 exemption was predicated, the department may assess an 464 administrative fine against the statement holder in an amount 465 not to exceed $1,000 per each day of noncompliance. Failure to 466 annually report compliance with any condition upon which the 467 issuance of the statement was predicated constitutes 468 noncompliance. In assessing the penalty, the department shall 469 take into account as mitigation the degree of noncompliance. 470 Proceeds of such penalties shall be deposited in the State 471 School Trust Fund. 472 (2)(a) Unless the applicant has commenced construction, if 473 the project requires construction, and unless the applicant has 474 incurred an enforceable capital expenditure commitment for a 475 project, if the project does not provide for construction, a 476 statement of need terminates 18 months after the date of 477 issuance. The department shall monitor the progress of the 478 holder of the statement of need in meeting the timetable for 479 school development specified in the application and may revoke 480 the statement of need if the holder of the statement is not 481 meeting such timetable and is not making a good-faith effort, as 482 defined by rule, to meet it. 483 (b) The statement of need validity period for a project 484 shall be extended by the department if the applicant 485 demonstrates to the satisfaction of the department that good 486 faith commencement of the project is being delayed by litigation 487 or by governmental action or inaction with respect to 488 regulations or permitting that precludes commencement of the 489 project. 490 Section 8. Section 1002.3281, Florida Statutes, is created 491 to read: 492 1002.3281 Statement of need required; penalties.—It is 493 unlawful for any person to undertake a project subject to review 494 without a valid statement of need. Any person violating this 495 section commits a misdemeanor of the second degree, punishable 496 as provided in s. 775.082 or s. 775.083. Each day of continuing 497 violation shall be considered a separate offense. 498 Section 9. Section 1002.3282, Florida Statutes, is created 499 to read: 500 1002.3282 Transfer prohibited.—The holder of a statement of 501 need may not transfer a statement of need to another person. A 502 holder who violates this section commits a misdemeanor of the 503 first degree, punishable as provided in s. 775.082, or by a fine 504 of up to $10,000, or both. 505 Section 10. Section 1002.329, Florida Statutes, is created 506 to read: 507 1002.329 Injunction.—Notwithstanding the existence or 508 pursuit of any other remedy, the department may maintain an 509 action in the name of the state for injunction or other process 510 against any person to restrain or prevent the pursuit of a 511 project subject to review in absence of a valid statement of 512 need. 513 Section 11. Subsection (1), paragraph (a) of subsection 514 (6), and paragraph (a) of subsection (8) of section 1002.33, 515 Florida Statutes, are amended, and paragraph (e) is added to 516 subsection (7) of that section, to read: 517 1002.33 Charter schools.— 518 (1) AUTHORIZATION.—Charter schools shall be part of the 519 state’s program of public education. All charter schools in 520 Florida are public schools. A charter school may be formed by 521 creating a new school or converting an existing public school to 522 charter status. A charter school may operate a virtual charter 523 school pursuant to s. 1002.45(1)(d) to provide full-time online 524 instruction to eligible students, pursuant to s. 1002.455, in 525 kindergarten through grade 12. A charter school must amend its 526 charter or submit a new application pursuant to subsection (6) 527 to become a virtual charter school. A virtual charter school is 528 subject to the requirements of this section; however, a virtual 529 charter school is exempt from subsections (18) and (19), 530 subparagraphs (20)(a)2., 4., 5., and 7., paragraph (20)(c), and 531 s. 1003.03. A public school may not use the term charter in its 532 name unless it has been approved under this section. Effective 533 July 1, 2016, a district school board may not issue a charter to 534 a charter school that has not been issued a statement of need 535 pursuant to s. 1002.326. 536 (6) APPLICATION PROCESS AND REVIEW.—Charter school 537 applications are subject to the following requirements: 538 (a) A person or entity wishing to open a charter school 539 shall prepare and submit an application on a model application 540 form prepared by the Department of Education which: 541 1. Demonstrates how the school will use the guiding 542 principles and meet the statutorily defined purpose of a charter 543 school. 544 2. Provides a detailed curriculum plan that illustrates how 545 students will be provided services to attain the Sunshine State 546 Standards. 547 3. Contains goals and objectives for improving student 548 learning and measuring that improvement. These goals and 549 objectives must indicate how much academic improvement students 550 are expected to show each year, how success will be evaluated, 551 and the specific results to be attained through instruction. 552 4. Describes the reading curriculum and differentiated 553 strategies that will be used for students reading at grade level 554 or higher and a separate curriculum and strategies for students 555 who are reading below grade level. A sponsor shall deny a 556 charter if the school does not propose a reading curriculum that 557 is consistent with effective teaching strategies that are 558 grounded in scientifically based reading research. 559 5. Contains an annual financial plan for each year 560 requested by the charter for operation of the school for up to 5 561 years. This plan must contain anticipated fund balances based on 562 revenue projections, a spending plan based on projected revenues 563 and expenses, and a description of controls that will safeguard 564 finances and projected enrollment trends. 565 6. Contains additional information a sponsor may require, 566 which shall be attached as an addendum to the charter school 567 application described in this paragraph. 568 7. For the establishment of a virtual charter school, 569 documents that the applicant has contracted with a provider of 570 virtual instruction services pursuant to s. 1002.45(1)(d). 571 8. Documents that the applicant has been issued a statement 572 of need by the Department of Education. Issuance of a statement 573 of need does not guarantee approval of the charter school 574 application. 575 (7) CHARTER.—The major issues involving the operation of a 576 charter school shall be considered in advance and written into 577 the charter. The charter shall be signed by the governing board 578 of the charter school and the sponsor, following a public 579 hearing to ensure community input. 580 (e) The charter must identify the issuance of a statement 581 of need by the Department of Education. 582 (8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.— 583 (a) The sponsor shall make student academic achievement for 584 all students the most important factor when determining whether 585 to renew or terminate the charter. The sponsor may also choose 586 not to renew or may terminate the charter for any of the 587 following grounds: 588 1. Failure to participate in the state’s education 589 accountability system created in s. 1008.31, as required in this 590 section, or failure to meet the requirements for student 591 performance stated in the charter. 592 2. Failure to meet generally accepted standards of fiscal 593 management. 594 3. Violation of law. 595 4. Failure to maintain a valid statement of need. 596 5. Other good cause shown. 597 Section 12. This act shall take effect October 1, 2015.